Agenda — Campbell City Council, September 17, 2024 (part 3 of 3)

8 Packet Pg. 325
Annual Investment Policy Update FY 2024-25 Page 3 of 4
• Page 9 – So as to be in alignment with SB 1489, added clarifying language that the purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

• Page 10 – So as to align with market benchmarks and allowable securities with maturities up to 5 years, replaced weighted average maturity language with duration language.

• Page 10 – Per best practice and CGC, Added the requirement of monthly transactions to the list of requirements for the quarterly report.

• Page 10 – Per best practice and CGC, moved the monthly transactions report requirement to be included in the quarterly report.

• Page 11 – Per best practice and CGC, updated language regarding Collateralization.

• Page 13 – Since detailed terms for Authorized Securities and Transactions are shown in Section V, recommending removing table summarizing the same terms since the table can easily become misaligned with the detailed terms and cause confusion. Sufficient detail is provided in Section V and inclusion of duplicate information in the summary table is not necessary for staff or the City’s investment advisors to fully comply with the Investment Policy.

The Finance Sub -Committee agreed with staff’s recommendations on the FY 2024-25 Investment Policy and recommended it for Council consideration and approval. The City’s Investment Strategy was also updated to reflect current economic and financial conditions and is shown as Attachment D. Representatives from Chandler will support City staff in its presentation of the recommended Investment Policy and Strategy for FY 2024 -25 as well as provide an Economic Update. Within this presentation, key economic indicators and charts shown in Attachment E will be highlighted and explained in more detail as requested by the Finance Sub-Committee.

While the Finance Sub-Committee agreed with agreed with staff’s recommendations on the FY 2024-25 Investment Policy, they did have several questions relating to adjusting allowable portfolio percentages (%) for investment options such as money market mutual funds, the risk management and mitigation approach of Chandler, consistency with State Law and best practice, and the impacts of tech sector job cuts on the economy. City staff and Chandler representative s answered these questions to the satisfaction of the Finance Sub-Committee, but will also provide answers to each in their presentation to the City Council on September 17.

FISCAL IMPACT

There is no immediate fiscal impact of either the FY 2024-25 Investment Policy or the 8 Packet Pg. 326
Annual Investment Policy Update FY 2024-25 Page 4 of 4
Investment Strategy.

Prepared by:

Will Fuentes, Finance Director

Approved by:

Angelique Gaeta, Assistant City
Manager

Attachment:
a. Resolution - FY 2024-25 Investment Policy
b. Investment Policy FY 2024-25 (REDLINE)
c. Investment Policy FY 2024-25 (CLEAN)
d. Investment Strategy FY 2024-25
e. Economic Update (Chandler 08-12-24)
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RESOLUTION NO.____________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

APPROVING THE ANNUAL UPDATE TO THE INVESTMENT POLICY FOR FISCAL YEAR (FY) 2024-25

WHEREAS, Government Code Section 53646(a)(2) recommends that a statement of Investment Policy be submitted to the City’s legislative body annually for its consideration at a public meeting; and

WHEREAS, there has been submitted to the City Council a statement of the City’s Investment Policy; and

WHEREAS, the Policy and any changes recommended by staff and the Finance Sub-Committee have been reviewed by the City Council and it has been determined that the Fiscal Year (FY) 2024-25 Investment Policy as recommended is acceptable.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Campbell that the FY 2024-25 Investment Policy is hereby approved as submitted.

PASSED AND ADOPTED this ____ day of __________ 2023, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Susan M. Landry, Mayor
ATTEST:

_________________________
Andrea Sanders, City Clerk

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Attachment: Resolution - FY 2024-25 Investment Policy (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

1 I. PURPOSE
It is the policy of the City of Campbell to invest public funds in a prudent manner which conforms to all statutes governing the investment of public funds while providing security and meeting the daily cash flow needs of the City.

The purpose of this document is to identify the policies guiding prudent investment of the City’s temporarily idle funds and to establish guidelines and objectives for suitable investments including delegation of authority, prudence, monitoring and reporting, policy review, diversification, eligible securities, safekeeping, collateralization, se lection of financial institutions and broker/dealers, glossary of terms, and forms utilized.

II. SCOPE
A. This investment policy shall apply to all financial assets, investment activities, and debt issues (excluding those debt issues subject to governing documents) of the City of Campbell including the following fund types:

1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Projects Funds

5. Internal Service Funds

6. Trust and Agency Funds
B. The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program.

III. OBJECTIVES
A. It is the objective of this policy to provide a system which will monitor and forecast revenues and expenditures so that the City can invest temporarily idle funds to the fullest extent possible. The temporarily idle funds shall be invested in accordance with provisions of California Government Code Section 53600 et. seq.

B. The City adheres to conservative investment philosophies including investment of all idle cash, preservation of principal at the risk of yield, maintenance of adequate liquidity to meet anticipated cash flow needs and diversification to avoid the risks inherent in over investing in any one asset class.

C. This policy specifically prohibits trading securities for the sole purpose of speculating on the future direction of interest rates. It further prohibits reverse repurchase agreements, use of derivative products, and/or leveraging of the portfolio.

D. The City shall ensure the safety of invested funds by limiting credit and interest rate risks. The three primary objectives of the City's Investment Policy in order of priority are:

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

2 1. Safety: Safety of principal is the foremost objective of the City of Campbell.

Safety and the minimizing of risk associated with investing refer to attempts to reduce the potential for loss of principal, interest or a combination of the two. The City ensures safety of its invested idle funds and limits credit and interest rate risks by following these guidelines (all of which are detailed within the body of the Investment Policy):
a. Investing only in those instruments that are generally accepted as safe investment vehicles for local government as authorized by this Policy,
b. Carefully reviewing the qualifications and financial strength of financial institutions and broker/dealers prior to conducting business with them,
c. Diversifying the investment portfolio as prescribed within this Policy,
d. Structuring the portfolio such that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation,
e. Limiting the final maturity of purchased securities to five years; limiting the weighted average maturity of the portfolio to three years, and
f. Ensuring the physical security or safekeeping of the City's investments.

2. Liquidity: Liquidity is the second most important objective of the City's Policy.

Liquidity refers to the ability to convert an investment to cash promptly without loss of principal and minimal loss of interest. For example, this is accomplished by maintaining sufficient balances in liquid investment products, such as the Local Agency Investment Fund (LAIF) or other local government investment pools which offer same day availability, or by investing in securities with active secondary or resale markets.

3. Return: Return on the City's portfolio is last in rank among investment objectives. Investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STRUCTURE AND RESPONSIBILITY
A. DELEGATION OF AUTHORITY:

1. The City Council assumes direction over the City’s investments, and assigns management responsibility for the investment program to the Finance Director, who shall serve as Chief Fiscal Officer, and have legal custody of funds. The Finance Director may provide for delegation of his/her responsibilities to other persons under his/her control responsible for investment transactions, including

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

3 the delegation of certain portions of the investment portfolio to one or more external and qualified investment advisers or such other designee approved by the Finance Sub-Committee. External investment advisors who are engaged b by the City shall be registered under the Investment Advisers Act of 1940 and shall assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

B. POLICY REVIEW:

1. This Investment Policy shall be reviewed and approved annually as recommended by California Government Code Section 53600 et. seq.

C. RESPONSIBILITIES:

1. Responsibilities of the City Council: The City Council consists of a Mayor and four Council members and is the policy setting board for the City of Campbell. The City Council has considered and adopted a written Investment Policy for the City of Campbell. Pursuant to the City's Financial Policies, the City Council shall on an annual basis, approve necessary changes to the Investment Policy as recommended by the Finance Sub -Committee. On a quarterly basis, the City Council shall receive, review and accept the Quarterly Investment Report submitted by the Finance Department.

2. Responsibilities of the Finance Sub -Committee: The Finance Sub - Committee consists of two Council members, the City Manager, the Finance Director, and the Assistant Finance Director. On an annual basis, this Sub - Committee shall review necessary revisions to the established Investment Policy of the City of Campbell and make a recommendation to the City Council accordingly. No less than once per fiscal year, the City's investment strategy will be reviewed by the Finance Sub -Committee. A summary of the investment strategy will be shared with the City Council at that time. Should market activity encourage revisions in the City's strategy, the Finance Sub-Committee shall be advised accordingly.

3. Responsibilities of the City Manager: The City Manager is responsible for directing and supervising the Finance Director. He/she has the responsibility of keeping the City Council fully advised as to the financial condition of the City. a. Wire Transfer Authority: The City Manager has unlimited wire transfer authority for a single transaction. Such a transaction requires joint review, approval and verification in advance by the City Manager and Finance Director. The transaction shall be highlighted in the Quarterly Investment Report to Council.

4. Responsibilities of the Finance Director: The Finance Director is appointed by the City Manager and serves as Chief Fiscal Officer. He/she is subject to the direction and supervision of the City Manager. The Finance Director is charged with the responsibility for the conduct of all Finance Department functions including the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

4 a. Wire Transfer Authority: The Finance Director has wire transfer authority not to exceed $5,000,000 for a single transaction. Such a transaction shall be reviewed, approved and verified in advance by the City Manager. The transaction shall be highlighted in the Quarterly Investment Report to Council.

5. Responsibilities of the Assistant Finance Director: The Assistant Finance Director is appointed by the Finance Director and serves as the Investment Manager for the City pursuant to specific delegation authority provided by this Investment Policy. He/she is subject to the direction and supervision of the Finance Director and is charged with the responsibility and conduct of the day - to-day accounting and cash management functions of the City. This includes the custody and investment of City funds, and inves tment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

Implementation and maintenance of the Investment Policy are the responsibility of this individual. On an annual basis, the Assistant Finance Director shall present to the Finance Sub -Committee, recommended changes to the City's Investment Policy. On a quarterly basis, the Assistant Finance Director shall present to the City Council, via the City Manager, a Quarterly Investment Report.

Refer to "Monitoring and Reporting" for additional information. a. Wire Transfer Authority: The Assistant Finance Director has wire transfer authority not to exceed $3,000,000 for a single investment transaction.

Such a transaction shall be reviewed, approved and verified in advance by the Finance Director, and shall be reported in the Quarterly Investment Report to Council.

6. Responsibilities of the Accountant: The Accountant is appointed by the Finance Director and is subject to the direction and supervision of the Assistant Finance Director. The Accountant carries out the specific instructions provided by the Assistant Finance Director regarding the purchase and sale of securities in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Accounting for the various investment transactions is the responsibility of the Accountant.
a. Wire Transfer Authority: The Accountant has wire transfer authority not to exceed $2,100,000 for a single investment transaction. The standard operating procedure is that all cash and investment wire transfers made by the Accountant and Senior Accountant are reviewed, approved and verified in advance by the Assistant Finance Director, and are reported in the Quarterly Investment Report to Council.

D. Prudence:

1. Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard. This means that all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

5 this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

2. The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally riskless and that the investment activities of the City are a matter of public record. Accordingly, while the intent of the City is to hold purchased securities to maturity, the City recognizes that occasional measured losses may be advisable in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that (a) adequate diversification has been implemented and (b) the sale of a security is in the best long-term interest of the City.

E. Ethics and Conflicts of Interest:

Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City’s investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any business interests they have in financial institutions that conduct business with the City, and they shall subordinate their personal investment transactions to those of the City. In addition, the City Manager, the Finance Director and others with delegated investment authority shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.

All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 through 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.

Conflict with State Statutes or Regulations

1. In the instance of any conflict between the City of Campbell Investment Policy and Government Code Section 53600 et seq, the more stringent requirement shall apply.

V. AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

6 to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment practices, the City may delay adherence to the new requirements when it is deemed in the best interest of the City to do so. Percentage holdings limits listed in this section apply at the time the security is purchased.

The City has further restricted the eligible types of securities and transactions to the following:

1. United States Treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of purchase.

2. Federal Agency debentures and mortgage -backed securities with a final maturity not exceeding five years from the date of purchase issued by the Government National Mortgage Association (GNMA). The aggregate investment in Federal Agency obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

3. Federal Instrumentality (government sponsored enterprise (GSE)) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of purchase, issued by the following only: Federal Home Loan Banks (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC). The aggregate investment in Federal Instrumentality obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency/GSE issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

4. Repurchase Agreements with a final termination date not exceeding one year collateralized by U.S. Treasury obligations, Federal Agency securities, or Federal Instrumentality securities listed in items 1, 2 and 3 above with the maturity of the collateral not exceeding five years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value of the transaction. Collateral shall be held in the City's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. The aggregate investment in repurchase agreements shall not exceed 10% of the City’s total portfolio.

Repurchase Agreements shall be entered into only with broker/dealers that have executed a City approved Master Repurchase Agreement with the City. Repurchase counterparties shall be recognized as Primary Dealers with the Federal Reserve Bank of New York, or shall have a primary dealer within their holding company structure. Broker/dealers approved as Repurchase Agreement counterparties shall have a short -term credit rating of at least A-1 or the equivalent and a long-term credit rating of at least A or the equivalent.

The Finance Director shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers that have executed a Master Repurchase Agreement with the City.

5. Prime Commercial Paper with a maturity not exceeding 270 days from the date of purchase with the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Ratings Organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in eith er sub-paragraph a.

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

7 or sub-paragraph b. below:
a. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of five hundred million dollars ($500,000,000) and (3) have debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
b. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A -1” or higher, or the equivalent, by a NRSRO.

No more than 5% of the City’s total portfolio may be invested in the commercial paper and medium-term notes of any single issuer, and the aggregate investment in commercial paper shall not exceed 25% of the City’s total portfolio.

6. Eligible Bankers Acceptances provided that no more than 5% of the City’s total portfolio may be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio. The maximum maturity does not exceed 180 days.

7. Medium Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of purchase, and are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the City’s total portfolio may be invested in medium term notes of any one issuer and the aggregate investment in medium term notes shall not exceed 30% of the City’s total portfolio.

8. Non-negotiable Time Certificates of Deposit and savings deposits with a maturity not exceeding five years, in state or nationally chartered banks or savings and loans with a California branch office that are insured by the FDIC. Time Certificates of Deposit exceeding the FDIC insured amount must be secured pursuant to California Government Code Section 53652. No more than $1 million may be invested in non -negotiable time certificates of deposit of any one issuer and the aggregate amount invested in non - negotiable time certificates of deposit shall not exceed 2520% of the City’s total portfolio.

9. Certificates of Deposit at commercial bank, savings bank, or savings and loan association that uses a private sector entity (Certificate of Deposit Account Registry Service) that assists in the placement of certificates of deposit, provided that the purchase of certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The City shall choose a nationally or state chartered commercial bank in California as the “selected” depository institution to invest the funds. The selected depository institution may submit the funds to a CDARS for the benefit of the City’s account.

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC. The maximum maturity does not exceed 5 years

9.10. Negotiable Certificates of Deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that the purchase of

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

8 certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued b y institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. The maximum maturity does not exceed 5 years and no more than 5% of the total portfolio may be invested in any single issuer.

10.11. State of California’s Local Agency Investment Fund (LAIF) , pursuant to California Government Code Section 16429.1.

11.12. Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no- load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in this policy and (3) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in mutual funds of any one issuer, and the aggregate investment in mutual funds shall not exceed 1510% of the City’s total portfolio.

The combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

12.13. Money Market Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this policy and (4) have a rating of at least two of the following: AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 1020% of the City’s total portfolio may be invested in the shares of any on money market funds of any one issuer, and the combined aggregate investment in mutual funds and money market funds shall not exceed 1520% of the total portfolio.

13.14. Municipal and State Obligations with a minimum long-term rating of A/A-1 or higher by Standard and Poor’s and not exceeding 1030% of the portfolio and the maximu m maturity does not exceed 5 years:
(a) Bonds Issued by the Local Agency (City of Campbell) including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.) (b) State Obligations including registered treasury notes or bonds of this State and any of the other 49 states in addition to California, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of the any of the other 49 United States, in addition to California.
(c) California Local Agency obligations including bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the any of the local agency.
(d) No more than 5% of the portfolio may be invested in any single issuer.

14.15. Asset-Backed, Mortgage -Backed, Mortgage Pass -Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined in sections 1, 2 and 3 of the Authorized Securities and Transactions Elsewhere in the Authorized Investments

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

9 Section of This Policy, provided that:
(a) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(b) No more than 20% of the total portfolio may be invested in these securities. (c) No more than 5% of the portfolio may be invested in any single Asset-Backed security issuer.
(d) The maximum legal final maturity does not exceed five (5) years.

15.16. Supranationals, provided that:
(a) Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
(b) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(c) No more than 30% of the total portfolio may be invested in these securities. (d) No more than 10% of the portfolio may be invested in any single issuer. (e) The maximum maturity does not exceed five (5) years.

Note: Per state statute, the maximum combination of Mutual Funds and Money Market Mutual Funds is 20% of the portfolio.

It is the intent of the City that the foregoing list of authorized securities and transactions is strictly interpreted. Any deviation from this list must be preapproved by the City Council writing.

16.17. Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA) organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions
(a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority and be rated AAA or equivalent. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(a) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(b) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (c) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

17.18. Prohibited Investment Vehicles and Practices
a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero - or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited.

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

10 f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
f.g. The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

VI. PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of settlement, unless the City Council has granted authority to make such an investment at least three months prior to the date of investment. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.The weighted average final maturity of the City’s portfolio shall at no time exceed 3 years.

VII. MONITORING AND REPORTING
A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Assistant Finance Director's Investment Report at the first regularly scheduled City Council meeting after 45 days from the end of the quarter. The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:
➢ Type of Investment and Issuer
➢ Beginning Balances
➢ Purchases During Quarter
➢ Monthly transactions including all Maturities andor Sales During the Quarter ➢ Ending Balances
➢ Maturity Date
➢ Weighted Average Final Maturity
➢ Call Provisions (if any)
➢ Interest Rate
➢ Weighted Average Yield
➢ Face Value or Purchase Cost
➢ Market Value including source
➢ Interest Earned During Quarter
➢ Interest Earned to Maturity
➢ Cash Flow Projection for the Following Quarter
➢ Summary of Cash Invested to Total Cash Balances
➢ Comparative Statistics by Fiscal Year
➢ Reconciliation of Cash & Investments to General Ledger Balances ➢ Investments under the Management of Contracted Parties ➢ Statement of Compliance with the Investment Policy
➢ Statement of Ability to Meet Obligations of Next Six Months

B. In addition to the Quarterly Investment Report, monthly transaction reports will be submitted by the Finance Director to City Council within 45 days of the end of the reporting period in accordance with California Government Code Section 53607.

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Attachment: Investment Policy FY 2024-25 (REDLINE) (Annual Investment Policy Update FY 2024-25) City of Campbell, California
Investment Policy Date: September 517, 20243

11 VIII. SELECTION OF BROKER/DEALERS
The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers representing primary dealers in government securities that have established offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

Exceptions to this rule will be made only upon the joint written authorization of the Finance Director and City Manager. Staff shall investigate broker/dealers wishing to do business with the City to determine if they are adequately capitalized, are reputable, have pending legal action against the firm or the individual broker, have established offices and order desks within the State of California, and make markets in the securities appropriate to the City’s needs.

Before accepting funds or engaging in investment transactions with the City, the supervising officer at each authorized broker/dealer shall submit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most rece nt audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they will comply with it and disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and the City of Campbell. If the City has engaged the services of an outside professional investment advisor, the investment advisor may use its own list of authorized broker -dealers to conduct transactions on behalf of the City.

IX. DELIVERY, SAFEKEEPING AND COLLATERALIZATION
A. Delivery:

1. All investment transactions shall be conducted on a delivery -versus-payment (DVP) basis.

B. Safekeeping:

1. The City shall contract with a bank or banks for the safekeeping of securities which are owned by the City as a part of the investment portfolio. Staff shall periodically review the performance and pricing of the third -party, safekeeping agent services.

2. All investment securities (except the collateral for certificates of deposit in banks, and/or savings and loans) purchased by the City shall be held in third -party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information, and shall provide monthly reports of activity and ending balances for all securities held on behalf of the City.

C. Collateralization:

1. Deposit-type Certificates of Deposit (CDs). The Agency shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non -Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security. securities (i.e. certificates of deposit) shall be collateralized through the State of California

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12 collateral pool requirements for any amount exceeding FDIC coverage in accordance with California Government Code Section 53652 and/or 53651(m) (1). Collateral for certificates of deposit shall be held in a trust company located in California, the trust department of a bank located in California or the Federal Home Loan Bank of San Francisco.

2. Other Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The Agency shall require any bank or financial institution to comply with the collateralization criteria define d in California Government Code, Section 53651.securities shall be collateralized by the actual security held in third-party safekeeping by the primary agent.

3. Repurchase Agreements. The Agency requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
a. The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. b. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above
a.c. The Agency shall receive monthly statements of collateral.

X. DIVERSIFICATION AND ELIGIBLE SECURITIES
The City will diversify investment instruments to avoid incurring unreasonable risks in overinvesting in specific instruments, individual financial institutions or maturities. The following portfolio maximums shall apply:

If the credit ratings of any security owned by the City are downgraded to a level below the quality required by this investment policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

If a security is downgraded, the Finance Director will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

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13 Authorized Securities and Transactions Maximum Portfolio

CA. Gov’t.

Code
Section
Authorized Investment Maximum
Maturity
Authorized
Investment Limits -
% of Portfolio
Credit Rating Limit
53601 (a) City of Campbell Local Agency
Bonds 5 years None/10% Per
Issuer A/A-1 or Higher
53601 (c) State Obligations 5 years None/10% Per
Issuer A/A-1 or Higher
53601 (e) California Local Agencies 5 years None/10% Per Issuer A/A-1 or Higher
53601(b) United States Treasuries 5 years None None
53601(e) Federal Agency Securities 5 years 75% None
53601(e) Federal Instrumentality 5 years 75% None
53691(i) Repurchase Agreements 1 year 10% A-1/A

53601(g)

Prime Commercial Paper

270 days
25%
5% Per Issuer

A/A-1 or higher
53601(f) Eligible Bankers Acceptances 180 days 5% per issuer/30% Aggregate A-1/P-1/F-1
53601(j) Medium Term Notes 5 years 30%/ 5% per
issuer A/A-1 or Higher

53601(n)

Non-negotiable Certificates of
Deposit

5 years
25%
$1 million per
issuer

53601.8
(a)-(h)

Certificates of Deposit through
Account Registry Services

5 years
30% Aggregate
Maximum Up to
the FDIC Insured
Limit Per Issuer

-
16429.1 State of California LAIF N/A None -
53601(k) *Mutual Funds None 15% AAAm/Aaa/AAAV1+
53601(k) *Money Market Mutual Funds None 15% AAAm/Aaa/AAAV1+

53601(o)
Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through
Securities, and Collateralized
Mortgage Obligations

5 years

20%/5% per issuer

AA or higher
53601(q) Supranationals 5 years 30% AA or higher
53601(p) Shares of a joint powers authority N/A None AAA or higher

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14 CA. Gov’t.

Code
Section
Authorized Investment Maximum
Maturity
Authorized
Investment Limits -
% of Portfolio
Credit Rating Limit
*Combined total not to exceed
20% per State

20%

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15 EXHIBIT A

GLOSSARY
Asset Backed Securities. - Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Banker's Acceptance. This is a negotiable time draft (bill of exchange) with a maturity of six months or less drawn on and accepted by a commercial bank. Banker's Acceptances are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable commodities. Per State Law, cities may not invest more than 30% of idle cash in Banker's Acceptances.

Certificate of Deposit (CD's). - is a receipt for funds deposited in a bank or savings and loan association for a specified period of time at a specified rate of interest. The first $250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC). CD's with a face value in excess of $250,000 can be collateralized by Treasury Department Securities, which must be at least 110% of the face value of the CD's, in excess of the first $250,000, or by first mortgage loans which must be at least 150% of the face value of the CD balance in excess of the first $250,000.

Commercial Paper. - Notes are unsecured promissory notes of industrial corporations, utilities and bank holding companies. State law limits a city to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating. Per State law, cities with less than $100 million in assets under management may not invest more than 25% of idle cash in commercial paper.

Delivery Versus Payment (DVP). - Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been made. DVP stipulates that the buyer's cash payment for securities must be made prior to or at the same time as the delivery of the security.

Local Agency Investment Fund (L.A.I.F.). - The L.A.I.F. was established by the state of California to enable treasurers to place funds in a pool for investments. There currently is a limitation of $75 million per agency subject to a maximum of 15 total transactions per month. The City of Campbell uses this fund when interest rates are declining as well as for short-term investments and liquidity.

Medium Term Notes. - are corporate or depository institution debt securities meeting certain minimum quality standards (as specified in the California Government Code) with a remaining maturity of five years or less.

Money Market Mutual Fund. - Mutual funds that invest solely in money market instruments (short- term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

Mortgage Backed Securities. - Mortgage-backed securities (MBS) are created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a prorata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal

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16 agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

Mortgage Pass-Through Obligations. - Securities that are created when residential mortgages (or other mortgages) are pooled together and undivided interests or participations in the stream of revenues associated with the mortgages are sold.

Mutual Fund. - An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by strict Securities and Exc hange Commission (SEC) disclosure guidelines.

Nationally Recognized Statistical Ratings Organization. - A nationally recognized statistical ratings organization (NRSRO) is a credit rating agency that provides an assessment of the creditworthiness of a firm or financial instrument(s) that is registered and approved by the Securities and Exchange Commission (SEC). Not all credit rating organizations are NRSROs Repurchase Agreements (REPOS). - is a contractual arrangement between a financial institution, or dealer, and an investor. This agreement normally can run for one or more days. The investor puts up his funds for a certain number of days at a stated yield. In return, he takes a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid plus interest.

Supranationals. - International institutions formed by two or more governments that transcend boundaries to pursue mutually beneficial economic or social goals. There are three supranational institutions that issue obligations that are eligible investments for California local agencies: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and InterAmerican Development Bank (IADB).

U.S. Treasury Bills. Commonly referred to as T-Bills, these are short-term marketable securities sold as obligations of the U.S. Government. T-Bills do not accrue interest but are sold at a discount to pay face value at maturity.

U.S. Treasury Notes. These are marketable, interest-bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi-annually.

U.S. Treasury Bonds . These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer.

U.S. Government Agency Issues. Are securities that are unconditionally backed by the full faith and credit of the United States, including: Government National Mortgage Association (GNMA), Farmers Home Administration (FmHA),Small Business Administration (SBA), General Services Administration (GSA), Federal Housing Administration (FHA) and Housing and Urban Development (HUD).

U.S. Government Instrumentality Issues. Are government sponsored enterprises that are backed by the creditworthiness of the issuing agency, not the full faith and credit of the U.S. government. They do carry an implied guarantee of government assistance to the organization should it encounter financial difficulties. Issuers include: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC).

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1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Projects Funds

5. Internal Service Funds

6. Trust and Agency Funds
B. The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program.

D. The City shall ensure the safety of invested funds by limiting credit and interest rate risks. The three primary objectives of the City's Investment Policy in order of priority are:

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2 1. Safety: Safety of principal is the foremost objective of the City of Campbell.

2. Liquidity: Liquidity is the second most important objective of the City's Policy.

IV. STRUCTURE AND RESPONSIBILITY
A. DELEGATION OF AUTHORITY:

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B. POLICY REVIEW:

1. This Investment Policy shall be reviewed and approved annually as recommended by California Government Code Section 53600 et. seq.

C. RESPONSIBILITIES:

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Such a transaction shall be reviewed, approved and verified in advance by the Finance Director, and shall be reported in the Quarterly Investment Report to Council.

D. Prudence:

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E. Ethics and Conflicts of Interest:

Conflict with State Statutes or Regulations

1. In the instance of any conflict between the City of Campbell Investment Policy and Government Code Section 53600 et seq, the more stringent requirement shall apply.

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The City has further restricted the eligible types of securities and transactions to the following:

1. United States Treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of purchase.

4. Repurchase Agreements with a final termination date not exceeding one year collateralized by U.S. Treasury obligations, Federal Agency securities, or Federal Instrumentality securities listed in items 1, 2 and 3 above with the maturity of the collateral not exceeding five years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued in terest of 102% of the dollar value of the transaction. Collateral shall be held in the City's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. The aggregate investment in repurchase agreements shall not exceed 10% of the City’s total portfolio.

The Finance Director shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers that have executed a Master Repurchase Agreement with the City.

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9. Certificates of Deposit at commercial bank, savings bank, or savings and loan association that uses a private sector entity (Certificate of Deposit Account Registry Service) that assists in the placement of certificates of deposit, provided that the purchase of certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The City shall choose a nationally or state chartered commercial bank in California as the “selected” depository institution to invest the funds . The selected depository institution may submit the funds to a CDARS for the benefit of the City’s account.

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC. The maximum maturity does not exceed 5 years

10. Negotiable Certificates of Deposit (NCDs) issued by a nationally or state -chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that the purchase of

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11. State of California’s Local Agency Investment Fund (LAIF) , pursuant to California Government Code Section 16429.1.

12. Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in this policy and (3) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in mutual funds of any one issuer, and the aggregate investment in mutual funds shall not exceed 10% of the City’s total portfolio. The combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

13. Money Market Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this policy and (4) have a rating of at least two of the following: AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 20% of the City’s total portfolio may be invested in the shares of any on money market fund, and the combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

14. Municipal and State Obligations with a minimum long -term rating of A/A -1 or higher by Standard and Poor’s and not exceeding 30% of the portfolio and the maximum maturity does not exceed 5 years:
(a) Bonds Issued by the Local Agency (City of Campbell) including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.) (b) State Obligations including registered treasury notes or bonds of this State and any of the other 49 states in addition to California, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of the any of the other 49 United States, in addition to California.
(c) California Local Agency obligations including bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the any of the local agency.
(d) No more than 5% of the portfolio may be invested in any single issuer.

15. Asset-Backed, Mortgage -Backed, Mortgage Pass -Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined in sections 1, 2 and 3 of the Authorized Securities and Transactions Section of This Policy, provided that:

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9 (a) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(b) No more than 20% of the total portfolio may be invested in these securities. (c) No more than 5% of the portfolio may be invested in any single Asset-Backed security issuer.
(d) The maximum legal final maturity does not exceed five (5) years.

16. Supranationals, provided that:
(a) Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
(b) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(c) No more than 30% of the total portfolio may be invested in these securities. (d) No more than 10% of the portfolio may be invested in any single issuer. (e) The maximum maturity does not exceed five (5) years.

It is the intent of the City that the foregoing list of authorized securities and transactions is strictly interpreted. Any deviation from this list must be preapproved by the City Council writing.

17. Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA) organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority and be rated AAA or equivalent. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(a) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(b) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (c) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

18. Prohibited Investment Vehicles and Practices
a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
g. The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

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10 VI. PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of settlement, unless the City Council has granted authority to make such an investment at least three months prior to the date of investment. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

VII. MONITORING AND REPORTING
A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Assistant Finance Director's Investment Report at the first regularly scheduled City Council meeting after 45 days from the end of the quarter. The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:
➢ Type of Investment and Issuer
➢ Beginning Balances
➢ Purchases During Quarter
➢ Monthly transactions including all Maturities and Sales During the Quarter ➢ Ending Balances
➢ Maturity Date
➢ Weighted Average Final Maturity
➢ Call Provisions (if any)
➢ Interest Rate
➢ Weighted Average Yield
➢ Face Value or Purchase Cost
➢ Market Value including source
➢ Interest Earned During Quarter
➢ Interest Earned to Maturity
➢ Cash Flow Projection for the Following Quarter
➢ Summary of Cash Invested to Total Cash Balances
➢ Comparative Statistics by Fiscal Year
➢ Reconciliation of Cash & Investments to General Ledger Balances ➢ Investments under the Management of Contracted Parties ➢ Statement of Compliance with the Investment Policy
➢ Statement of Ability to Meet Obligations of Next Six Months VIII. SELECTION OF BROKER/DEALERS
The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers representing primary dealers in government securities that have established offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

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11 Before accepting funds or engaging in investment transactions with the City, the supervising officer at each authorized broker/dealer shall submit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most rece nt audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they will comply with it and disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and the City of Campbell. If the City has engaged the services of an outside professional investment advisor, the investment advisor may use its own list of authorized broker -dealers to conduct transactions on behalf of the City.

IX. DELIVERY, SAFEKEEPING AND COLLATERALIZATION
A. Delivery:

1. All investment transactions shall be conducted on a delivery-versus-payment (DVP) basis.

B. Safekeeping:

C. Collateralization:

1. Certificates of Deposit (CDs). The Agency shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified a s mortgages and 110% of the face value of the CD for all other classes of security.

2. Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The Agency shall require any bank or financial institution to c omply with the collateralization criteria defined in California Government Code, Section 53651.

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12 Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. b. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above
c. The Agency shall receive monthly statements of collateral.

If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

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13 EXHIBIT A

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14 agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

U.S. Treasury Notes. These are marketable, interest-bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi-annually.

U.S. Treasury Bonds . These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer.

U.S. Government Agency Issues. Are securities that are unconditionally backed by the full faith and credit of the United States, including: Government National Mortgage Association (GNMA), Farmers Home Administration (FmHA), Small Business Administration (SBA), General Services Administration (GSA), Federal Housing Administration (FHA) and Housing and Urban Development (HUD).

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Attachment: Investment Policy FY 2024-25 (CLEAN) (Annual Investment Policy Update FY 2024-25)

To: Finance Sub-Committee

Date: September 9, 2024
From: Will Fuentes, Finance Director

Subject: Investment Strategy for FY 2024-25

BACKGROUND

The Investment Policy establishes procedures and guidelines by which the City’s surplus funds can be managed in a prudent and fiscally sound manner. The policy encompasses those funds over which the City exercises fiscal control and prioritizes the objectives of public funds management as safety, liquidity and yield, in that order and consistent with guidance provided by the Government Finance Officers Association (GFOA). It also stipulates allowable and unallowable investment alternatives as well as establishes parameters for selecting broker/dealers and institutions with which the City may do business.

California Government Code Section 53646 (a ) (2) recommends that on an annual basis, the City Investment Policy be submitted to its legislative body and any oversight committee for consideration at a public meeting. The Finance Sub-Committee is the oversight committee responsible for review of the Investment Policy. In addition to review of any proposed revisions to the Investment Policy, staff and the City’s new investment advisors (Chandler) have prepared a report summarizing the past year’s economic cond itions and the recommended Investment Strategy for managing the City’s available invested funds in FY 2024-25.

INVESTMENT OBJECTIVES AND OVERVIEW
The City’s policy is to invest public funds in a prudent manner, provide for maximum security while meeting daily cash flow needs and comply with applicable statutes. Chief among the objectives outlined in the Investment Policy are safety, liquidity and return, in that specific order and again consistent with GFOA guidance . Within this framework , a number of investment choices are provided to allow flexibility in meeting these objectives. The City and its investment advisors continue to take a conservativ e approach with its investments and that is reflected in the currently recommended investment policy.

As a means to implement the policy, it is important to develop a strategy for achieving the stated objectives. Likewise, the strategy should be reviewed periodically to determine whether it needs to be modified in light of changing economic and financial conditions. This document will serve as the City’s investment strategy for the next year (FY 2024-25) and will be reviewed annually in conjunction with the review of the City’s Investment Policy or sooner if conditions warrant.

CITY OF CAMPBELL MEMORANDUM
Finance Department

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SUMMARY OF CURRENT STRATEGY AND RECOMMENDATIONS
As the Finance Sub-Committee may recall, the City went through a competitive RFP process last fiscal year and selected Chandler Asset Management to assist with the investment of City funds. As part of the agreement with Chandler, City staff will continue to manage liquid funds to meet near -term expenditures and Chandler will manage longer -term funds not needed for immediate use. Chandler though will provide expertise and support to City staff as needed regarding the optimal investment of near-term liquid funds.

In regard to Investment Strategy for FY 2024-25, Chandler and City staff recently conducted a benchmark study to determine a benchmark that would capture the City's appropriate risk tolerance and serve as a comparison for performance over time. Given this study, City staff and Chandler recommend the selection of the ICE Bank of America Merrill Lynch 1 -5 Year US Treasury and Agency Inde x as its target benchmark to invest funds and to evaluate Chandler’s performance against. Chandler will invest funds in accordance with the City's Investment Policy, and based on market conditions, seek to maximize return in comparison to the selected benchmark while also prioritizing safety and liquidity.

As of July 31, 2024, Chandler and the City have completed operational requirements of the on-boarding process; with Chandler managing approximately $18.85 million of City funds as of that date. Given funds not needed for near -term operational needs and the maturity of several other longer -term investment, t he City transferred another $5.0 million into its Chandler managed portfolio in early August 2024 . The City will contribute additional funds into its Chandler managed portfolio as staff identifies future funds not needed for near-term operational expenditures. As in the past, staff continues to recommend that the City maintain sufficient liquidity to cover daily operating cash flows for a minimum of 3 months to provide a reasonable cushion for fluctuation s in the portfolio balance and for unforeseen emergencies. Average monthly disbursements over the last fiscal year (FY 202 3-24) were approximately $8.0 million. Therefore, staff recommends retaining a target of $24.0 million (3 months) in the Local Agency Investment Fund (LAIF) or similar secure, stable, and liquid pooled investment funds as allowed by the City’s Investment Policy . Please note that as of June 30, 2024, the City had $78.9 million invested in LAIF, with an annual return of 3.93%.

This compares with $75.0 million invested in LAIF as of June 30, 2023 and an annual LAIF return of 2.17% at that time.

Through the end of FY 2024-25 and given recommendations above, Chandler will position the portfolio relative to the benchmark duration, diversify across sectors, position maturities along the yield curve and perform credit oversight of all the City's investment positions.

ECONOMIC UPDATE AND OUTLOOOK
Shown a s Attachment E and as of August 12, 2024 , Chandler has prepared a comprehensive Economic Update which covers the following topics on a national level:
• Significant Economic Highlights
• Employment
• Job Openings & Labor Turnover
• Inflation
• Consumer Spending and Confidence

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• Leading Economic Indicators
• Housing
• Manufacturing
• Gross Domestic Product (GDP)
• Federal Reserve
• Bond Yields
Additionally, as it relates to employment in California, the state gained 21,100 nonfarm payroll jobs in July 2024 . Statewide unemployment remained stable at 5.2%; unchanged from June 2024, but up from 4.7% in July 2023 . In Santa Clara County, the unemployment rate increased to 4.4% in July 2024; up from 4.1% in June 2024 and 3.7% in July 2023. And in Campbell, the unemployment rate increased to 3.9% in July 2024; up from 3.7% in June 2024 and 3.2% in Ju ly 2023 . At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11.2%.

PORTFOLIO BALANCE
For the fiscal year ended June 30, 20 24, the City’s portfolio balance was approximately $95.59 million and was comprised of approximately $78.9 million (82.27%) in LAIF, $16.0 million (16.68%) in US Government Agency securities, and $1.0 million ( 1.04) in corporate notes or money market accounts. The weighted average yield for the fiscal year was 3.79%.

This compares to a portfolio balance of $95.5 million and a weighted average yield of 2.25% for fiscal year ended June 30, 2023. The higher FY 2024 yield was the result of both higher fixed income investment returns and higher LAIF returns . Almost all these funds are considered “discretionary” investments meaning that the City can invest this amount as it sees fit within the guidelines of the Investment Policy.

RECOMMENDATION
It is recommended that the Finance sub -Committee approve the proposed strategy for FY 2024-25.

Distribution:

Sergio Lopez, Vice Mayor
Anne Bybee, Council Member
Brian Loventhal, City Manager
Angelique Gaeta, Assistant City Manager

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ECONOMIC
UPDATE
A UGUST 12, 2024

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


Recent economic data suggests positive but slower growth this year fueled by consumer spending. While the consumer has been resilient, growing credit card debt, higher delinquencies, and a moderating labor market pose potential headwinds to future economic growth.

Inflationary trends are subsiding, but core levels remain above the Fed’s target. The labor market is showing marked signs of cooling, reflecting an improved balance between supply and demand for workers. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed begin lowering interest rates at upcoming meetings with pace and magnitude determined by the incoming data.

As expected at the July meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. Although this was the eighth straight meeting they left the overnight rate unchanged, they noted that risks to achieving their employment and inflation goals are moving “into better balance”. In addition, the FOMC adjusted their evaluation of the labor market pointing out that job gains have moderated. The market is now pricing in more aggressive easing in the coming months.

The US Treasury yield curve shifted significantly lower in July as economic data moderated. The 2-year Treasury yield fell 50 basis points to

4.26%, the 5-year Treasury dropped 46 basis points to 3.91%, and the 10-year Treasury yield declined 37 basis points to 4.03%. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -23 basis points at July month-end versus -36 basis points at June month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -92 basis points. The inversion between 3-month and 10-year Treasuries widened to -126 basis points in July from -96 basis points in June.

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-400
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0 200
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Underemployment Rate (U6)
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The U.S. economy added 114,000 jobs in July, significantly below expectations of 175,000. Additionally, the prior two months were revised down by 29,000. The three-month moving average and six-month moving average payrolls have weakened from the first quarter to 170,000 and 194,000 respectively. The unemploymentrate increased to 4.3% in July, and the labor participation rate inched up to 62.7%, remaining below the pre-pandemic level of 63.3%. The U-6 underemploymentrate, which includes those who are marginally attached to the labor force and employed part time for economic reasons rose to 7.8% from 7.4%. Average hourly earnings rose 3.6% year-over-year in July, down from 3.8% year-over-year in June. The labor markets continue to show signs of cooling, in line with the Federal Reserve’s view that there has been “substantial” progress towards better balance in the labor market between demand and supply for workers.

Source: US Department of Labor Source: US Department of Labor

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0 2,000
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Historical Average
In Thousands (000's)
The Labor Department’s Job O penings and Labor TurnoverSurvey (JOLTS) decreased to 8.18 million job openings in June from an upwardly revised 8.23 million in May. Job openings still represent a healthy ratio of around 1.2 jobs for each unemployed individual. The quits rate, an indicator of job availability, came in at 2.1%, which is the lowest level since 2020. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating.

Source: US Department of Labor

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0.0%

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Consumer Price Index (CPI)
CPI YOY % Change
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YOY (%) Change

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Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Cor e Deflator Y OY % Change
Fed Target
YOY (%) Change
In June, the Consumer Pr ice Index (CPI) declined 0.1% month-over-monthand rose 3.0% year-over-year, reflecting broad-based cost reductions. The month-over-monthdrop was the first deflationary data point since the pandemic. The Core CPI, which excludes volatile food and energy components, was up just 0.1% month-over-monthand 3.3% year-over-year in June, down from 3.4% in May and lower than expected. The Personal Consumption Expenditures (PCE) Index rose 0.1% from the previous monthand 2.5% year-over-year in June.

The Core PCE deflator (the Fed’s preferredgauge) increased 0.2% month-over-monthand 2.6% over the past year, still above the Fed’s 2% inflation target. Much of the lingering inflation has been driven by shelter costs and demand for services, but recent data provide confirmation that inflation is moderating.

Source: US Department of Labor Source: US Department of Commerce

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-30.0%
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-10.0%

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Retail Sales YOY % Change
YOY (%) Change
Retail Sales were uncha nged month-over-monthin June after an upwardly revised 0.3% gain in May. On a year-over-year basis, Retail Sales growth further slowed to 2.3% in June from 2.6% in May. Nonstore retailers were a bright spot in June, while motor vehicle and gasoline sales declined. The Conference Board’s Consumer Confidence Index rose to 100.3 in July, up from June’s downwardly revised

97.8 reading. While the present situation component declined, future expectations for the labor market improved. While the consumer has been resilient, consumption has begun to moderate in the face of higher interest rates, rising credit card balances, and growing delinquencies.
0 20
40 60
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Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

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-25.0%
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-5.0%

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Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Boa rd’s Leading Economic Index (LEI) fell 0.2% in June following a 0.4% decline in May. The index dropped 4.8% year-over- year. The report stated that "due to the smaller month-on-monthrate of decline, the LEI's long-term growth has become less negative, pointing to a slow recovery.” The Chicago Fed National Activity Index (CFNAI) decreased to 0.05 in June from 0.23 in May, surpassing consensus expectations. The three-month moving average rose to -0.01 in June from -0.08 in May, indicating slightly below-trend growth expectations for the economy.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

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0 200
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In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts jumped 3.0% month-over-monthin June to a higher-than-expected 1.353 million units, driven primarily by the multi-family category. Starts were down 4.4% year-over-year. The Freddie Mac average rate for a 30-year fixed mortgage edged down to 6.85% in July from 6.92% in June. According to the Case-Shiller 20-City Home Price Index, housing prices rose 6.8% year-over-year in May, decelerating from 7.3% reported in the previous month. Tight inventories and higher mortgage rates continue to impact affordability.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

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S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

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40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index declined to a lower than expected 46.8 in July from 48.5 in June. New orders were weak, and staff reductions increased. The ISM Services Index rebounded to 51.4 in July after falling unexpectedly to 48.8 in June. The survey reflected a return to growth in production, new orders and employment in July. A reading over 50 indicates expansion, while a reading under 50 indicates contraction.

Source: Institute for Supply Management

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Attachment: Economic Update (Chandler 08-12-24) (Annual Investment Policy Update FY 2024-25) Gross Domestic Product (GDP)
Components of GDP 9/23 12/23 3/ 24 6/24

2.1% 2.2% 1.0% 1.6%

1.7% 0.2% 0.8% 1.5%

0.0% 0.3% -0.7% -0.7%

0.5% 0.2% 0.0% 0.3%

0.5% 0.6% 0.3% 0.3%

4.9% 3.4% 1.4% 2.8%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-40.0%
-30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce The advance estimate for second quarter GDP came in higher than expected at 2.8%, beating consensus expectations and 1.4% growth in the first quarter. Personal consumption was the largest contributor to GDP, mostly due to outlays for necessities such as health care, housing, and utilities. The strong reading was also driven by business capital investment and an increase in auto inventories as car dealerships grappled with a software cyberattack. The consensus projection calls for 1.5% growth in the third quarter and 2.3% growth for the full year 2024.

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Source: Federal Reserve Source: Bloomberg
0 1,000,000
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Federal Reserve Balance Sheet Assets
Recession
In $ millions
As expected at the July meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. Although this was the eighth straight meeting they left the overnight rate unchanged, they noted that risks to achieving their employment and inflation goals are moving “into better balance”. In addition, the FOMC adjusted their evaluation of the labor market pointing out that job gains have moderated. The Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage-backed securities as per its predefined schedule of $25 billion and $35 billion per month. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by approximately $1.7T to approximately $7.3T.

0.00%

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6.00%
Effective Federal Funds Rate
Recession
Yield (%)

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Source: Bloomberg Source: Bloomberg

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US Treasury Note Yields
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Yield (%)

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US Treasury Yield Curve
Jul-24
Apr-24
Jul-23
Yield (%)
At the end of July, the 2-year Treasury yield was 62 basis points lower, and the 10-Year Treasury yield was 7 basis points higher, year- over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -23 basis points at July month-end versus -36 basis points at June month-end. The inversion has occurred since July 2022 and remains historically long. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries widened to -126 basis points in July from -96 basis points in June.

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Attachment: Economic Update (Chandler 08-12-24) (Annual Investment Policy Update FY 2024-25) Disclosures
2024 Chandler Asset Management, Inc., An independent Registered Investment Adviser This report is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is no intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally must pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

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City
Council
Report

TITLE: CAAP GHG Emissions Inventory Results

RECOMMENDED ACTION

That the City Council receive the report and provide initial feedback concerning the GHG Emissions Inventory, Forecast, and Emissions Reduction Targets as part of the Climate Action and Adaptation Plan.

PURPOSE

The City is in the process of developing its first Climate Action and Adaptation Plan (CAAP), which will include goals, strategies, and actions to mitigate greenhouse gases (GHG) emissions and build community resiliency to the impacts of climate change (such as hotter temperatures, longer droughts, and more severe winter storms). The purpose of this item is to inform the Council of the results of the GHG Emissions Inventory, including future estimated emissions through 2045, reduction targets to align with State goals, and initial focus areas for the CAAP based on emissions data . This report is also to provide a progress update on key workplan milestones ahead associated with the CAAP.

BACKGROUND
The City of Campbell is committed to addressing climate change by reducing greenhouse gas emissions and enhancing resilience against climate impacts, as outlined in the adopted 2040 General Plan, which mandates the preparation of a Climate Action Plan:

COS-10.c Prepare a Climate Action Plan that establishes GHG reduction targets that are consistent with Statewide GHG reduction goals and includes an implementation program to achieve the reduction targets. Periodically review and update the Plan as necessary to achieve the GHG reduction targets specified in the Plan.

Reflecting this commitment, the City Council identified Sustainability as a priority for FY 2024 and FY 2025, with the creation of a CAAP included the respective Work Plans.

On February 20, 2024, the City Council approved and awarded a contract with Rincon Consultants (Rincon) and on April 16, 2024, staff held a kick -off with City Council to discuss the project plan, key milestones, and community outreach. Establishing a GHG inventory is the first step in the process. Staff plans to subsequently return to Council to present the following additional updates and obtain feedback, as outlined in the workplan that was presented to Council in April:

Item: 9
Category: UNFINISHED BUSINESS
Meeting Date: September 17, 2024
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• November 2024: Climate Adaptation Analysis and Community Outreach Update • Early 2025: Study Session to Discuss Scenarios and Potential Measures and Actions
• Spring 2025: Review Draft CAAP
• September 2025: Adopt Final CAAP
Figure 1. CAAP Process

DISCUSSION
The discussion below is divided into five parts. The first part provides a brief explanation of the GHG Emissions Inventories. The second and third parts summarize the results of the 2022 GHG Emissions associated with community wide activities (“Community Inventory”) and City operations (“Municipal Inventory”), respectively. The fourth part summarizes the results of the future forecast and alignment with Statewide emissions reduction target, and the fifth and final part summarizes key takeaways.

GHG Emission Inventories
GHG emissions quantification frameworks have been developed over decades in an effort to standardize GHG accounting. Campbell’s inventory follows International Council for Local Government Initiatives (ICLEI) protocols, focusing on the three GHGs most relevant to the City: carbon dioxide (CO 2), methane (CH 4), and nitrous oxide (N2O). Emissions are measured in terms of their global warming potential, and expressed as Metric Tons of Carbon Dioxide Equivalent, or MT CO2e.

Conducting an inventory serves to provide a comprehensive understanding of GHG emissions within a jurisdiction, and may be developed to serve the following purposes:
• Understand where the highest sources of emissions originate, and where the greatest opportunities for reduction exist.
• Create a baseline from which the jurisdiction can establish a forecast, reduction targets, and evaluate future progress.
• Help the jurisdiction understand how best to meet legislative requirements concerning GHG reduction.
• Enable the jurisdiction to follow accounting and reporting principles.

Based on the results of the Community Inventory, Rincon developed a forecast for 2030, 2035, 2040, and 2045. The forecast provides an up -to-date projection of how 9 Packet Pg. 377
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GHG emissions are expected to change in the future based on population growth, employment growth, and State legislation. The report also presents a gap analysis to help identify GHG emissions reduction levels that will be needed to achieve the State GHG emissions reduction targets. Like all GHG inventories, forecasts, and targets, the analysis in this report relies on the best available data and calculation methodologies currently available.

Community Inventory Results
Campbell’s Community Inventory covers emissions sources within city limits. The inventory reflects emissions sectors over which the City of Campbell has jurisdictional control and influence and includes:

• Use of electricity in residential and nonresidential buildings • Use of natural gas in residential and nonresidential buildings • On-road passenger and freight motor vehicle travel
• Off-road equipment, such as construction equipment
• Use of energy in potable water and wastewater treatment and distribution • Generation of solid waste by the community

There are several sources of emissions that are excluded from this inventory. On-road transportation includes trips into and out of Campbell but excludes passthrough trips.

Emissions from industrial sources and operations are covered under the State’s Cap - and-Trade program and are often not included in Community Inventories. Emissions sources from agriculture are not included in the inventory as there are not significant agricultural land uses/production in Campbell. Additionally, o ther sectors that the Cit y does not have influence or control over are excluded – such as emissions from imported goods. This approach is consistent with GHG inventory accounting principles, as well as methods set forth by ICLEI.

Attachment A provides the methodology and calculations used to estimate emissions based on activity data in Campbell in 2022. The results of the analysis are shown in the chart below. On -Road Transportation accounts for the majority of emissions in Campbell (59 percent), followed by Building Natural Gas (26 percent). 9 Packet Pg. 378
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Figure 2. 2022 Community Inventory Emissions by Sector

In total, the GHG Inventory estimates over 223,000 MT CO 2e in Campbell during 2022.

This equates to approximately 5.28 MT CO 2e per capita , slightly below the 2017 estimate of 5.58 MT CO2e per capita for all of Santa Clara County.

Municipal Inventory Results
The City’s 2022 Municipal GHG Inventory was completed using the Local Government Operations Protocol 1 (LGOP) developed by Local Governments for Sustainability (ICLEI), California Air Resources Board (CARB), California Climate Action Registry, and The Climate Registry (TCR). The LGOP methodology includes the calculation of GHG emissions that can be attributed directly to City operations (e.g.: heating and cooling City facilities, employee commutes, emissions from City fleet, etc.) in the given inventory year and is considered a subset of the Community Inventory. The municipal inventory allows the City to track its GHG emissions resulting from its facilities, vehicles, and any equipment over which it can exert control with policies (e.g. electrifying municipal fleets and buildings, conducting internal outreach to improve landfill diversion).

The results of the analysis are shown in the chart below. City operations are responsible for 3,411 MT CO 2e. Transportation accounts for 69 percent of those emissions (55 percent from employee commutes and 14 percent from City fleet). Natural gas used for City facilities accounts for 21 percent of emissions.

1 ICLEI. May 2010. Local Government Operations Protocol for the quantification and reporting of greenhouse gas emissions inventories.
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Figure 3. 2022 Municipal Inventory Emissions by Sector
Forecast and Reduction Targets
A GHG emissions inventory sets a reference point for a single year; however, annual GHG emissions change over time due to factors such as population and job growth, as well as new technologies and policies. This section includes an estimate of the future emissions for Campbell in the years 2030, 2035, 2040 and 2045 in a business -as-usual scenario (BAU) forecast and a legislative adjusted scenario forecast, which are defined as follows:
• Business-as-Usual Forecast (“BAU”). Provides a forecast of how future GHG emissions would change if consumption trends continued as they did in 2022 and projected changes in population, housing, employment, and transportation activity over time consistent with planned projects within Campbell. The BAU does not include any GHG reductions associated with State regulations. • Legislative Adjusted Forecast. Provides a forecast of how currently adopted state legislation (such as the Advanced Clean Cars 2 or Renewables Portfolio Standards3) would reduce GHG emissions from the business -as-usual scenario.

The legislative adjusted scenario represents the State’s contribution to reducing local GHG emissions to meet State goals.

Because the Legislative Adjusted forecast incorporates the impact of State regulations that provide GHG emission reduction potential, it offers a more accurate picture of 2 https://ww2.arb.ca.gov/our-work/programs/advanced-clean-cars-program 3 https://ww2.arb.ca.gov/our-work/programs/renewables-portfolio-standard 9 Packet Pg. 380
CAAP GHG Emissions Inventory Results Page 6 of 8
future GHG emission growth and the responsibility of Campbell for GHG reductions through local and regional actions. A brief description of each regulation and the methodology used to calculate associated reductions is provided in Attachment A.

Using the 2022 inventory results, along with population and job projections from Campbell’s 6 th Cycle Housing Element and Plan Bay Area 2050 (adopted by Metropolitan Transportation Commission and the Association of Bay Area Governments), BAU and Legislative Adjusted forecasts were developed. Even with state legislation, all sectors are expected to increase except for water energy conveyance. Reductions in electricity emissions are offset by natural gas consumption growth, and per capita transportation emiss ions (from EV adoption and fuel efficiency requirements) are offset by population growth. Legislation is estimated to reduce Campbell’s Community GHG Emissions from approximately 386,000 MT CO 2e in 2045 to approximately 301,000 MT CO2e.

Figure 4. Business -as-Usual and Legislative Adjusted Forecast through 2045, by Sector
The State has set the following GHG emissions reduction goals:
• Reduce emissions to 40 percent below 1990 levels by 2030 (SB 32 target year) • Make substantial progress towards carbon neutrality by 2045 (AB 1279 target year)
As demonstrated below, Campbell will need to reduce over 92,000 projected MT CO 2e by 2030, and 301,000 projected MT CO2e by 2045 to meet State targets.

Figure 5. Gap Analysis
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Key Takeaways
Campbell's annual community emissions were estimated a t 223,170 MT CO 2e in 2022 and are projected to rise to 301,165 MT CO2e by 2045.

In order to meet the State’s SB 32 target goal, Campbell would need to reduce annual community emissions by 37 % in the nex t six years (based on 2030 projected emissions). Meeting the AB 1279 targets wou ld require Campbell to reduce annual community emissions b y 301,165 MT CO 2e by 2045 , with an y remaining emissions offset through carbon sequestration or carbon credits.

As we look to address our largest source of emissions—transportation—it's important to note tha t the Ci ty will beg in developing a Multimoda l Transportation Plan ne xt year, focused on promoting alternative mode s of transportation, such a s walking and biking.

While the CAAP will be focused on broader strategies across all sectors, we will need to ensure alignment between the two plans.

Emissions from building energy are expected to increase nearl y 40% by 2045. As the second-largest sou rce o f emission s in Campbell , the Ci ty shou ld a lso focu s on strategies that reduce emission s in th is area (e.g . electrifying existing building s). Solid waste emissions are projected to increase 57% by 2045 and will be another area the City should focus on is waste diversion.

NEXT STEPS
Staff will return to Council in November with the results of the Climate Change Vulnerability Assessment and Community Outreach to date. Following these presentations, Staff will schedule a Study Session to discuss scenarios to achieve the goals of the CAAP, set priorities, and establish a vision for the future of Campbell.

Prepared by:
223,170
160,226
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Tiffany Hudson, Environmental Program
Specialist
CAAP GHG Emissions Inventory Results Page 8 of 8
Reviewed by:

Rob Eastwood, Community
Development Director
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Campbell CAAP GHG Analysis Report
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Campbell Climate Action & Adaptation Plan
Greenhouse Gas Inventory Analysis Report
prepared by
City of Campbell
Community Development Department
70 North First Street
Campbell, California 95008
Contact: Tiffany Hudson, Environmental Program Specialist prepared with the assistance of
Rincon Consultants, Inc.
449 15th Street, Suite 303
Oakland, California 94612
August 2024

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Table of Contents
1 Introduction .................................................................................................................................... 1

1.1 Legislative Context .............................................................................................................. 2

1.2 Climate Science Context ..................................................................................................... 3 2 Community GHG Emissions Inventory ............................................................................................ 4

2.1 Methodology ....................................................................................................................... 4

2.2 2022 Community GHG Emissions Inventory ....................................................................... 5

2.2.1 Energy .................................................................................................................... 6

2.2.2 Transportation .....................................................................................................14

2.2.3 Solid Waste ..........................................................................................................20

2.2.4 Water ...................................................................................................................22

2.2.5 Wastewater ..........................................................................................................23 2022 Community GHG Emissions Inventory Results ....................................................................30 3 Municipal GHG Emissions Inventory.............................................................................................35

3.1 Methodology .....................................................................................................................35

3.2 2022 Municipal GHG Emissions Inventory ........................................................................36

3.2.1 Buildings and Other Facilities ...............................................................................36

3.2.2 Streetlights and Traffic Signals .............................................................................38

3.2.3 Water Delivery .....................................................................................................38

3.2.4 Vehicle Fleet .........................................................................................................39

3.2.5 Solid Waste from City Facilities ............................................................................40

3.2.6 Wastewater from City Facilities ...........................................................................40

3.2.7 Employee Commute.............................................................................................41

3.3 2022 Municipal GHG Emissions Inventory Results ...........................................................42 4 GHG Emissions Forecast ...............................................................................................................46

4.1 Business-as-Usual Forecast ...............................................................................................46

4.2 Legislative Adjusted Forecast ............................................................................................50

4.2.1 Legislative Reduction Programs ...........................................................................50

4.2.2 Legislative Adjusted Scenario Forecast Results ...................................................54

4.2.3 Legislative GHG Emission Reduction Contribution ..............................................56 5 GHG Emissions Targets .................................................................................................................57

5.1 1990 Level GHG Emissions Backcast .................................................................................57

5.2 GHG Emissions Reduction Target Setting .........................................................................58

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ii
Tables
Table 1 2022 Inventory GHGs and GWPs ........................................................................................ 3 Table 2 Emissions Parameters and Data Sources – Community Electricity Use.............................. 7 Table 3 Community Residential and Commercial Electricity Activity Data Adjustment ................. 7 Table 4 Community Residential and Commercial Electricity GHG Emissions Calculations ............. 8 Table 5 Emissions Parameters and Data Sources – Community Electricity T&D Loss ..................... 9 Table 6 Community Electricity T&D Loss GHG Emissions Calculations ........................................... 9 Table 7 Emissions Parameters and Data Sources – Community Natural Gas Use ........................11 Table 8 Community Residential and Commercial Natural Gas GHG Emissions Calculations ........12 Table 9 Emissions Parameters and Data Sources – Community Natural Gas Leaks ......................13 Table 10 Community Natural Gas Methane Leaks GHG Emissions Calculations .............................13 Table 11 Emissions Parameters and Data Sources – Community On-Road Transportation ...........15 Table 12 Emissions Parameters and Data Sources – Community On-Road Transportation ...........16 Table 13 Community On-Road EV Activity Data Calculations .........................................................17 Table 14 Community On-Road Transportation GHG Emissions Calculations ..................................17 Table 15 Emissions Parameters and Data Sources – Community Off-Road Equipment .................18 Table 16 Community Off-Road Equipment Sector Attributions ......................................................19 Table 17 Community Off-Road GHG Emissions Calculations ...........................................................20 Table 18 Emissions Parameters and Data Sources – Community Solid Waste ...............................21 Table 19 Emissions Parameters and Data Sources – Community Solid Waste ...............................21 Table 20 Community Solid Waste Tonnage Allocation ....................................................................22 Table 21 Emissions Parameters and Data Sources – Community Water ........................................23 Table 22 Emissions Parameters and Data Sources – Community Wastewater WW.1B .................24 Table 23 Emissions Parameters and Data Sources – Community Wastewater WW.2.B ................25 Table 24 Emissions Parameters and Data Sources – Community Wastewater WW.7 ....................26 Table 25 Emissions Parameters and Data Sources – Community Wastewater WW.12 ..................27 Table 26 Emissions Parameters and Data Sources – Community Wastewater WW.15 ..................28 Table 27 Emissions Parameters and Data Sources – Community Wastewater WW.15 ..................29 Table 28 Community Wastewater GHG Emissions Calculations .....................................................30 Table 29 2022 Community GHG Emissions Inventory .....................................................................33 Table 30 Municipal Buildings and Facilities Sector Natural Gas GHG Emissions Calculations ........37 Table 31 Municipal Buildings and Facilities Sector Electricity GHG Emission Calculations .............38 Table 32 Municipal Streetlights and Traffic Signals Sector Electricity GHG Emission Calculations .38 Table 33 Municipal Water Consumption GHG Emissions Calculations ...........................................39 Table 34 Municipal Vehicle Fleet Sector GHG Emission Calculations .............................................40 Table 35 Municipal Solid Waste GHG Emission Calculations ..........................................................40 Table 36 Municipal Wastewater GHG Emissions .............................................................................41

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Table 37 Municipal Employee Commute GHG Emissions ...............................................................42 Table 38 2022 Municipal GHG Inventory.........................................................................................45 Table 39 BAU Forecast Demographic and Projection Metrics by Forecast Year .............................47 Table 40 GHG Emission Sources and Growth Factors for BAU Scenario Forecast ..........................48 Table 41 BAU Forecast Results Summary by Emission Sector .........................................................49 Table 42 Emission Factors Over Time by Vehicle Type (MT CO2e/VMT) .........................................51 Table 43 Forecasted RPS and Weighted Electricity Emission Factor ...............................................53 Table 44 Legislative Adjusted Scenario Forecast Results ................................................................55 Table 45 Summary of Legislative GHG Emissions Reductions (MT CO2e) .......................................56 Table 46 1990 Backcast for Campbell ..............................................................................................57 Table 47 GHG Emissions Reduction Targets and Gap Analysis ........................................................58 Figures
Figure 1 Community Inventory GHG Emissions by Sector ..............................................................31 Figure 2 Community Inventory GHG Emissions by Subsector ........................................................32 Figure 3 Municipal 2022 GHG Inventory.........................................................................................43 Figure 4 2022 Municipal GHG Inventory Subsector Breakdown ....................................................44 Figure 5 BAU Forecast Results Summary by Emission Sector (MT CO2e) .......................................50 Figure 6 Adjusted Forecast Results .................................................................................................56 Figure 7 GHG Emissions Forecast and Provisional Target Pathways (Mass Emissions) ..................59

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1 Introduction
This document presents the data, methods, and results for a 2022 greenhouse gas (GHG) emissions inventory and 2045 forecast Campbell. This is the first GHG emission inventory for Campbell and includes communitywide emissions as well as emissions from municipal operations. The inventory was conducted to support Campbell’s GHG emissions reduction targets, and ultimately the Campbell Climate Action and Adaptation Plan (CAAP).

California (the State) has set statewide GHG emissions reduction goals to mitigate negative climate change impacts and transition the State to a low-carbon economy. In particular, the State has established goals to reduce statewide GHG emissions 40 percent below 1990 levels by 2030, as established by Senate Bill (SB) 32, and achieve net zero GHG emissions as soon as possible, but no later than 2045, as established by Assembly Bill (AB) 1279. 1 The California Air Resources Board
(CARB) is the agency responsible for addressing these goals and developing strategies to achieve them. Many local jurisdictions are completing their own GHG inventories, forecasts, and climate action plans (CAPs) to align with SB 32 and AB 1279
.

Local governments play a fundamental role in reducing local GHG emissions and preparing for a more resilient future. Local policies can influence high-emissions behaviors and mitigate climate change effects.2 To this end, the City is developing a CAAP to align with State goals, increase resilience and climate change preparedness, maintain healthy air and water resources, and improve community health and the local economy. The forthcoming CAAP will include the 2022 GHG emissions inventory for the community (2022 Community GHG Inventory) and the associated GHG emissions forecast, in addition to the municipal operations inventory (2022 Municipal GHG Inventory). Municipal GHG emissions are a subset of community GHG emissions and are included in the community GHG inventory and associated forecast.

The 2022 Community GHG Inventory completed for Campbell includes GHG emissions from communitywide activities within the jurisdictional boundaries of Campbell during 2022. Based on the inventory, Rincon developed a forecast for 2030, 2035, 2040, and 2045. The forecast provides an up-to-date projection of how GHG emissions are expected to change in the future based on population growth, employment growth, and State legislation. This document also presents a gap analysis to help identify GHG emissions reduction levels needed to achieve the State GHG emissions reduction targets. Like all GHG inventories, forecasts, and targets, the analysis in this document relies on the best available data and calculation methodologies currently available.

This report includes the following information by section:
 Section 1: Campbell’s 2022 Community GHG Inventory methodology, activity data, emissions factors, and results by sector.
 Section 2: City’s 2022 Municipal GHG Inventory methodology, activity data, emissions factors, and results by sector.

1 AB 1279 defines net zero GHG emissions as reducing GHG emissions at least 85 percent below 1990 levels. California also set a goal to reach 1990 levels by 2020, as established by AB 32, The 2020 goal set by AB 32 was achieved by the State in 2016. CARB. Frequently Asked Questions – California’s 2022 Climate Scoping Plan. Accessed November 14, 2022, at: https://ww2.arb.ca.gov/sites/default/files/2022- 06/2022_Scoping_Plan_FAQ_6.21.22.pdf
2 CARB. California’s 2017 Climate Change Scoping Plan. Accessed November 14, 2022, at:
https://ww2.arb.ca.gov/sites/default/files/classic/cc/scopingplan/scoping_plan_2017.pdf

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2  Section 3: Campbell’s forecast for the years 2030, 2035, 2040, and 2045, and alignment with State targets based on a 1990 backcast.

1.1 Legislative Context
The State has developed statewide legislative goals and programs to reduce GHG emissions. CARB has issued guidance concerning the establishment of GHG emissions reduction targets for local CAPs so municipalities can contribute their fair share towards the State’s goals. In CARB’s first Climate Change Scoping Plan (hereafter referred to as the 2008 Scoping Plan), the Board encouraged local governments to adopt a reduction target for their own community emissions that parallels the State’s commitment to reduce GHG emissions.
3 In 2017, CARB published and updated Scoping Plan
(hereafter referred to as the 2017 Scoping Plan Update) outlining the strategies the State will employ to reach the additional targets set by SB 32.
4 In December 2022, the 2022 California Climate Change Scoping Plan Update was published and includes recommendations for achieving the goal of carbon neutrality by 2045, codified in the California Health and Safety Code Section 38562.2, as amended by AB 1279.5 Legislative Targets
The State of California has adopted legislation and policies to address climate change, the most relevant of which are summarized below.
 Executive Order S-3-05, signed in 2005, established statewide GHG emissions reduction goals to achieve long-term climate stabilization as follows: by 2020, reduce GHG emissions to 1990 levels and by 2050, reduce GHG emissions to 80 percent below 1990 levels. This 2050 goal was accelerated by the 2045 carbon neutral goal established by EO B-55-18 and AB 1279, as discussed below.
 Assembly Bill 32, known as the Global Warming Solutions Act of 2006, required California’s GHG emissions be reduced to 1990 levels by the year 2020 (approximately a 15 percent reduction from 2005 to 2008 levels). The 2008 Scoping Plan identified mandatory and voluntary measures to achieve the statewide 2020 GHG emissions limit.
 Senate Bill 32, signed in 2016, established a statewide mid-term GHG emissions reduction goal of 40 percent below 1990 levels by 2030. CARB formally adopted the 2017 Scoping Plan Update in December 2017, laying the roadmap to achieve 2030 goals and giving guidance to achieve substantial progress toward the 2050 State goals. The 2022 Scoping Plan Update provided further guidance for reaching the State’s SB 32 goal.
 Executive Order B-55-18, signed in 2018, expanded upon EO S-3-05 by creating a statewide GHG emissions goal of carbon neutrality by 2045. EO S-55-18 identified CARB as the lead agency to develop a framework for implementation and progress tracking toward this goal in the 2022 Climate Change Scoping Plan Update.

3 CARB. Climate Change Scoping Plan: A Framework for Change. Dec. 2008. Accessed November 14, 2022 at:
ww2.arb.ca.gov/sites/default/files/classic//cc/scopingplan/document/adopted_scoping_plan.pdf 4 CARB. California’s 2017 Climate Change Scoping Plan. Accessed November 14, 2022, at:
https://ww2.arb.ca.gov/sites/default/files/classic/cc/scopingplan/scoping_plan_2017.pdf 5 CARB. 2022 Scoping Plan Update. Accessed November 14, 2022, at:
https://ww2.arb.ca.gov/sites/default/files/2022-05/2022-draft-sp.pdf

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 Assembly Bill 1279, known as the California Climate Crisis Act, signed by the governor in 2022, codified the GHG emissions reduction goals of achieving carbon neutrality by 2045. It expanded the definition of carbon neutrality to reducing direct emissions 85 percent below 1990 levels and removing the remaining 15 percent of emissions though carbon sequestration and other technologies. The 2022 Scoping Plan Update, adopted in December 2022, provided the pathway for reaching the State’s AB 1279 goal.

1.2 Climate Science Context
Greenhouse Gases
GHG emissions quantification frameworks have been developed over decades to standardize GHG accounting. The International Council for Local Government Initiatives (ICLEI) protocols for community and municipal inventories (discussed further in Section 2 and Section 3, respectively) assess emissions associated with the six internationally recognized GHGs, as outlined in Table 1.

Campbell’s inventory focuses on the three GHGs most relevant to the City: carbon dioxide (CO 2),
methane (CH4), and nitrous oxide (N2O). The other gases (hydrofluorocarbons, perfluorocarbons, and sulfur hexafluorides) are omitted from the inventory as they are emitted primarily in private sector manufacturing and electricity transmission. This approach is consistent with typical community and municipal inventory approaches, as industrial emissions are typically outside of the City’s jurisdictional control. Table 1 also includes the 100-year global warming potential (GWP) for each gas—consistent with the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report
6 and used by the State’s latest GHG emissions inventory. GWP refers to the ability of each gas to trap heat in the atmosphere. For example, one pound of methane gas has 28 times more heat capturing potential than one pound of carbon dioxide gas. GHG emissions are reported in metric tons of CO
2 equivalent (MT CO2e).

Table 1 2022 Inventory GHGs and GWPs
Greenhouse Gas Primary Source 100-year GWP
Carbon dioxide (CO2) Combustion 1
Methane (CH4) Combustion, anaerobic decomposition of organic waste (e.g., in landfills, wastewater treatment plants)
28 Nitrous Oxide (N2O) Leaking refrigerants and fire suppressants 265 Hydrofluorocarbons Leaking refrigerants and fire suppressants 4 - 12,400 Perfluorocarbons Aluminum production, semiconductor manufacturing, HVAC equipment manufacturing
6,630 - 11,100
Sulfur Hexafluoride (SH6) Transmission and distribution of power 23,500 Source: Intergovernmental Panel on Climate Change (IPCC). 2014. AR5 Synthesis Report: Climate Change 2014. Available at:
https://www.ipcc.ch/report/ar5/syr/

6 Intergovernmental Panel on Climate Change (IPCC). 2014. AR5 Synthesis Report: Climate Change 2014. Accessed January 5, 2023, at:
https://www.ipcc.ch/report/ar5/syr/

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4 2 Community GHG Emissions Inventory
Conducting a community GHG emissions inventory serves to provide a comprehensive understanding of GHG emissions within a jurisdiction, and may be developed to serve the following purposes:
 Provide an understanding of where the highest sources of emissions originate, and where the greatest opportunities for reduction exist.
 Create a baseline from which the jurisdiction can establish a forecast, reduction targets, and evaluate future progress.
 Help the jurisdiction understand how best to meet legislative requirements.  Enable the jurisdiction to follow accounting and reporting principles.

GHG inventories are developed by identifying the sources and sinks by sector for GHGs within the geographic boundary of interest (e.g., Campbell city limits), establishing activity data for each sector, and applying an emissions factor to determine the carbon dioxide equivalence (CO2e). While there are often many potential sectors contributing to the jurisdiction’s GHG emissions, only a select few sectors are typically considered the major contributors. The sectors used for Campbell’s GHG inventory are identified in the sections below.

2.1 Methodology
Protocol
Campbell’s 2022 Community GHG Inventory was developed in alignment with accounting protocols provided by ICLEI. ICLEI protocols are designed for local-scale accounting of GHG emissions and provide authoritative guidance for accuracy and consistency. The ICLEI U.S. Community Protocol for Accounting and Reporting Greenhouse Gas Emissions Version 1.2 (Community Protocol) serves to guide the measurement and reporting of GHG emissions in a standardized way and is used by other jurisdictions to support their own inventory, forecast, and climate action planning efforts. The Community Protocol also includes steps to evaluate the relevance, completeness, consistency, transparency, and accuracy of data used in the GHG inventory.

Emissions Boundary
Campbell’s 2022 Community GHG Inventory covers emissions sources within city limits. The inventory reflects emissions sectors over which the local government (i.e., City of Campbell) has jurisdictional control and influence, while other sectors that the City does not have control over are excluded. This approach aligns with general GHG inventory accounting principles, as well as methods set forth by the Community Protocol.

Scope
The Community Protocol recommends reporting GHG emissions from five basic reporting activities:
 Use of electricity by the community
 Use of fuel in residential and commercial stationary combustion equipment

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 On-road passenger and freight motor vehicle travel
 Use of energy in potable water and wastewater treatment and distribution  Generation of solid waste by the community
The Community Protocol also provides recommendations for additional GHG emissions source reporting for activities that can be influenced by the accounting agency. Based on reporting practices in California, it is recommended that GHG emissions from off-road equipment fuel combustion and wastewater treatment processes are also included in community GHG emissions inventories. Emissions from industrial sources and operations are covered under the State’s Cap- and-Trade program and are not included in the inventory.7 Additionally, emissions sources from agriculture are not included in the inventory as there are not significant agricultural land uses/production in Campbell.

The GHG emissions sources for this inventory can be categorized more generally into the following five activity sectors:
 Electricity
 Natural Gas
 Transportation
 Water and Wastewater
 Solid Waste
Campbell’s 2022 Community GHG Inventory includes an assessment of the community-wide GHG emissions associated with the five sectors listed above which serve as the basis for the GHG emissions forecast and target setting. Emissions from industrial sources and operations are covered under the State’s Cap and Trade program, and therefore not included in the inventory.8 Additionally, emissions sources from agriculture are not included in the inventory as there are no agricultural land uses/production in Campbell.

2.2 2022 Community GHG Emissions Inventory
Generally, GHG emissions are calculated by multiplying the activity data in each sector (e.g., electricity, transportation, solid waste) by an associated emission factor. Activity data refer to the relevant measured or estimated energy usage or GHG-generating process data. Emission factors are observation-based conversion factors used to equate activity data to generated GHG emissions. The 2022 Community GHG Inventory leverages the latest available models and best available data in accordance with the Community Protocol. The inventory serves to provide a comprehensive understanding of the community’s current GHG emissions, and as the basis for the forecast and target setting. The following sections contain further information on the inventory approach, calculation methodologies, data used, and results.

7 https://ww2.arb.ca.gov/our-work/programs/cap-and-trade-program 9 https://svcleanenergy.org/residential-rates/

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6 2.2.1 Energy
Energy: Residential and Commercial Electricity
Campbell sources electricity from Pacific Gas & Electric (PG&E) and Silicon Valley Clean Energy (SVCE). SVCE is the community choice aggregator for 13 communities across Silicon Valley, meaning that it is a public, not-for-profit agency providing clean electricity to their service territory. SVCE is the official electricity provider for Campbell, unless customers have ‘opted-out’ and instead purchase electricity from PG&E. The opt-out provided by SVCE is three percent of residential accounts and five percent of nonresidential accounts (e.g., commercial, industrial). SVCE has two tiers – GreenPrime (100 percent renewable) and GreenStart (around 45 percent renewable).9 Certain commercial accounts purchase what is known as ‘direct access’ electricity, where customers purchase electricity from a competitive non-utility entity called an Energy Service Provider (ESP).

Direct access electricity is typically less expensive, but more carbon intensive, than electricity options on the California grid.10
Emissions from residential and commercial electricity were calculated using Community Protocol Equation BE.2.1. Electricity use from EVs is captured under the transportation sector to provide a more thorough differentiation between building energy and transportation emissions. The equation has been adjusted to remove passenger car EV electricity use from residential electricity consumption and commercial and bus EV electricity consumption from commercial consumption. commercial. More information regarding electric vehicle energy use can be found in Section 2.2.2.

Equation 2-1 and Table 2 provide the adjusted equation, associated parameters, and data sources used to quantify GHG emissions associated with community electricity consumption.

EQUATION 2-1
BE.2.1

RESIDENTIAL/COMMERCIAL ELECTRICITY SECTOR EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑗𝑗 = ��𝐸𝐸𝐸𝐸𝑒𝑒𝐸𝐸𝑒𝑒,𝑗𝑗 − 𝐸𝐸𝐸𝐸𝑒𝑒,𝑗𝑗� × 𝐸𝐸𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑒𝑒,𝑗𝑗 𝑒𝑒

9 https://svcleanenergy.org/residential-rates/
10 https://www.cpuc.ca.gov/consumer-support/consumer-programs-and-services/electrical-energy-and-energy-efficiency/community- choice-aggregation-and-direct-access-/direct-access

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Table 2 Emissions Parameters and Data Sources – Community Electricity Use Definition Parameter Value Unit Data Source
Annual GHG emissions from
electricity consumption per
building type
𝐶𝐶𝑂𝑂
2𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑗𝑗 See Table 4 MT CO2e/year Calculated Electricity consumption per
building type per energy
provider
𝐸𝐸 𝐸𝐸𝑒𝑒 𝐸𝐸𝑖𝑖,𝑗𝑗 See Table 3 kWh/year SVCE 2022 Electricity Report; PG&E Community Report
1 Attributed electric vehicle
electricity consumption
𝐸𝐸𝐸𝐸
𝑖𝑖,𝑗𝑗 See Table 3 kWh/year EMFAC20212
Electricity emission factor
based on energy provider
𝐸𝐸𝐸𝐸𝑒𝑒𝐸𝐸𝑒𝑒 𝐸𝐸,𝑖𝑖,𝑗𝑗 S ee Table 4 MT CO2e/kWh SVCE 2022 Electricity Report; PG&E community Report

Energy Providers 𝑖𝑖 GWP Categorical
Building type 𝑗𝑗 Residential
Commercial
Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; MWh = megawatt hour 1 Silicon Valley Clean Energy (SVCE) 2022 Electricity Report, provided by the City via SharePoint and revised via email on May 29, 2024.

PG&E Community Report for 2022 provided by the City via SharePoint. 2 California Air and Resources Board. 2023. Emission Factor (EMFAC2021 v1.0.1) Model. Available at:
https://arb.ca.gov/emfac/emissions-inventory/5e0cb7d6006cc10661f4b3ffb9c120a486d46ea6 Table 3 below shows the original electricity activity data, allocated electric vehicle adjustment, and subsequent adjusted activity data used to determine GHG emissions for the community’s electricity consumption.

Table 3 Community Residential and Commercial Electricity Activity Data Adjustment Sector Provider
Original Activity Data
[kWh]
Attributed EV1
[kWh]
Adjusted Activity Data
[kWh]
Residential PG&E 3,701,979 288,761 3,413,218
Residential SVCE GreenPrime 1,579,728 123,222 1,456,507 Residential SVCE GreenStart 83,588,699 6,520,062 77,068,637 Direct Access Direct Access 18,509,670 0 18,509,670
Commercial PG&E 44,535 1 44,534
Commercial SVCE GreenPrime 1,762,625 44 1,762,581
Commercial SVCE GreenStart 93,266,368 2,343 93,264,025
Notes: kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent; EV = electric vehicles 1 EV kWh usage from passenger vehicles is removed from residential electricity, while commercial and bus EV kWh usage is removed from commercial electricity. If multiple providers exist for a community, attributed EV allocates electric vehicle kWh consumption to each provider based on the proportion of electricity provided by each provider per building type.

Resulting activity data, emissions factors, and GHG emissions by building type and provider are summarized in Table 4.

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8 Table 4 Community Residential and Commercial Electricity GHG Emissions Calculations
Sector Provider
Adjusted Activity Data
[kWh]
Emission Factor
[MT CO2e/kWh]
GHG Emissions
[MT CO2e]
Residential PG&E 3,413,218 0.00002630 90
Residential SVCE GreenPrime 1,456,507 0.00002132 31
Residential SVCE GreenStart 77,068,637 0.00003266 2,517 Direct Access Direct Access 18,509,670 0.00022654 4,193 Commercial PG&E 44,534 0.00002630 1
Commercial SVCE GreenPrime 1,762,581 0.00002132 38
Commercial SVCE GreenStart 93,264,025 0.00003266 3,046
Notes: kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent Energy: Electricity Transmission and Distribution Losses Electricity transmission and distribution (T&D) losses occur in the transmission of electricity and in the distribution system. Because these losses are upstream of the endpoints (i.e., buildings located within Campbell), this electricity is not captured in the activity data. T&D losses are recommended for inclusion in community GHG inventories by the Community Protocol, as these losses are associated with energy usage and directly impacted by the community’s electricity consumption.

Equation 2-2 and Table 5 provide the calculation method, associated parameters, and data sources used to quantify GHG emissions associated with community T&D losses from electricity consumption. As T&D losses associated with EV electricity use are considered negligible and, therefore, are included in the quantification of residential and commercial electricity T&D.

EQUATION 2-2
BE.4 ELECTRICITY T&D LOSS SECTOR EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑇𝑇&𝐷𝐷,𝑗𝑗 = � 𝐸𝐸𝐸𝐸𝑒𝑒𝐸𝐸𝑒𝑒,𝑗𝑗 × 𝐿𝐿𝑇𝑇&𝐷𝐷 × 𝐸𝐸𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑒𝑒,𝑗𝑗 𝑒𝑒

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Greenhouse Gas Inventory Analysis Report 9
Table 5 Emissions Parameters and Data Sources – Community Electricity T&D Loss Definition Parameter Value Unit Data Source
Annual GHG emissions from
transmission and distribution
losses per building type
𝐶𝐶𝑂𝑂2𝑒𝑒𝑇𝑇&𝐷𝐷,𝑒𝑒 S ee Table 6 MT CO2e/year Calculated
Electricity consumption per
energy provider and building
type
𝐸𝐸 𝐸𝐸𝑒𝑒 𝐸𝐸𝑖𝑖,𝑗𝑗 S ee Table 6 MWh/year SVCE 2022 Electricity Report; PG&E Community Report
1 Electricity emissions factor per
energy provider and building
type
𝐸𝐸𝐸𝐸𝑒𝑒𝐸𝐸𝑒𝑒 𝐸𝐸,𝑖𝑖,𝑗𝑗 S ee Table 6 MT CO2e/MWh SVCE 2022 Electricity Report; PG&E Community Report

Electricity loss factor 𝐿𝐿𝑇𝑇&𝐷𝐷 5.10% Percent EPA eGRID2 Energy Providers 𝑖𝑖 GWP Categorical
Building type 𝑗𝑗 Residential
Commercial3
Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; MWh = megawatt hour 1 Silicon Valley Clean Energy (SVCE) 2022 Electricity Report, provided by the City via SharePoint and revised via email on May 29, 2024.

PG&E Community Report provided to the City via SharePoint in May 2022. 2 Environmental Protection Agency (EPA). 2023. Data Explorer, grid loss rates, 2016. Available at: https://www.epa.gov/egrid/data- explorer
The activity data, emissions factors, and GHG emissions associated with electricity T&D losses are summarized in Table 6 per building type and electricity provider.

Table 6 Community Electricity T&D Loss GHG Emissions Calculations Sector Provider
Activity Data
[kWh]
T&D Losses
[kWh]1
Emission Factor
[MT CO2e/kWh]2
GHG Emissions
[MT CO2e]
Residential PG&E 3,701,979 188,801 0.000026 5
SVCE (GreenPrime) 1,579,728 80,566 0.000021 2
SVCE (GreenStart) 83,588,699 4,263,024 0.000033 139
Commercial PG&E 44,535 2,271 0.000026 <1
SVCE (GreenPrime) 1,762,625 89,894 0.000021 2
SVCE (GreenStart) 93,266,368 4,756,585 0.000033 155
Direct Access 18,509,670 943,993 0.000227 214
Notes: kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent 1 T&D losses include the kWh consumption associated with EV charging.

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10 Energy: Residential and Commercial Natural Gas
GHG emissions from natural gas result from stationary combustion in both the residential and commercial buildings. Like industrial electricity use, industrial use of natural gas is excluded from the GHG inventory as these emissions are regulated by the Cap-and-Trade program.

PG&E supplies Campbell’s natural gas and provided activity data to the City through its 2022 Community Report. Emissions from residential and commercial natural gas use were calculated using Community Protocol Equation BE.1.1.

Though the majority of natural gas emissions come from combustion, not all the natural gas used is combusted. Natural gas leaks – from processing plants, pipes, fittings, and appliances – are primarily methane, which has a higher GWP and therefore a larger GHG impact compared to combusted natural gas Therefore, the Community Protocol has been adjusted to remove this small percentage of “behind the meter” natural gas from the combustion calculation, and instead count it as leakage.

More information regarding emissions associated with natural gas leaks can be found under the Energy: Natural Gas Methane Leaks subsection below. Equation 2-3 and Table 7 provide the adjusted equation, associated parameters, and data sources used to quantify GHG emissions associated with community natural gas consumption in residential and commercial buildings.

EQUATION 2-3
BE.1.1 RESIDENTIAL/COMMERCIAL NATURAL GAS SECTOR EMISSIONS 𝐶𝐶𝑂𝑂2𝑒𝑒𝑁𝑁𝑁𝑁𝑒𝑒𝑁𝑁𝑁𝑁𝑁𝑁,𝑒𝑒 = �𝐸𝐸𝐹𝐹𝑒𝑒𝐸𝐸𝑁𝑁𝑁𝑁,𝑒𝑒 − [1 − 𝐿𝐿𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑁𝑁𝑒𝑒]� × ��𝐸𝐸𝐸𝐸𝑁𝑁𝑁𝑁,𝐶𝐶𝑂𝑂2 × 𝐺𝐺𝐺𝐺𝐺𝐺𝐶𝐶𝑂𝑂2 � + �𝐸𝐸𝐸𝐸𝑁𝑁𝑁𝑁,𝐶𝐶𝐻𝐻4 × 𝐺𝐺𝐺𝐺𝐺𝐺𝐶𝐶𝐻𝐻4 � + �𝐸𝐸𝐸𝐸𝑁𝑁𝑁𝑁,𝑁𝑁2𝑂𝑂 × 𝐺𝐺𝐺𝐺𝐺𝐺𝑁𝑁2𝑂𝑂�� × 10−1 × 10−3

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Table 7 Emissions Parameters and Data Sources – Community Natural Gas Use Definition Parameter Value Unit Data Source
Annual GHG emissions from
stationary combustion of
natural gas per building type
𝐶𝐶𝑂𝑂2𝑒𝑒𝑁𝑁𝑁𝑁𝑒𝑒𝑁𝑁 𝑁𝑁𝑁𝑁 ,𝑒𝑒 S ee Table 8 MT CO2e/year Calculated Natural gas consumed per
building type
𝐸𝐸𝐹𝐹𝑒𝑒𝐸𝐸𝑁𝑁𝐺𝐺,𝑖𝑖 S ee Table 8 therms/year PG&E Community Report1 Percent natural gas lost during
consumer end-use
𝐿𝐿𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑁𝑁𝑒𝑒 0.50% Percent Environmental Defense
Fund
2 Carbon dioxide emission
factor for natural gas
combustion
𝐸𝐸𝐸𝐸𝑁𝑁𝐺𝐺,𝐶𝐶𝑂𝑂2 53. 06 kg CO2e/mmBTU
natural gas
EPA Emission Factors Hub3
Methane emission factor for
natural gas combustion
𝐸𝐸𝐸𝐸𝑁𝑁𝐺𝐺,𝐶𝐶𝐻𝐻4 .001 kg CH4/mmBTU
natural gas
EPA Emission Factors Hub
Nitrous oxide emission factor
for natural gas combustion
𝐸𝐸𝐸𝐸𝑁𝑁𝐺𝐺,𝑁𝑁2𝑂𝑂 .0001 kg N2O/mmBTU
natural gas
EPA Emission Factors Hub
Global warming potential of
carbon dioxide
𝐺𝐺𝐺𝐺𝐺𝐺𝐶𝐶𝑂𝑂2 1 IPCC Fifth Assessment
Report4
Global warming potential of
methane
𝐺𝐺𝐺𝐺𝐺𝐺𝐶𝐶𝐻𝐻4 28 IPCC Fifth Assessment
Report
Global warming potential of
nitrous oxide
𝐺𝐺𝐺𝐺𝐺𝐺𝑁𝑁2𝑂𝑂 265 IPCC Fifth Assessment
Report
Conversion factor 10−1 0.1 mmBTU/therm
Conversion factor 10−3 .001 MT/kg
Building type (i.e., residential,
or commercial)
𝑖𝑖 Residential
Commercial5
Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; therms = thermal unit; mmBTU = metric million British thermal unit; kg = kilograms
1 PG&E Community Report Provided by the City via SharePoint in May 2024. 2 Environmental Defense Fund USER GUIDE FOR NATURAL GAS LEAKAGE RATE MODELING TOOL. Available at:
https://www.edf.org/sites/default/files/US-Natural-Gas-Leakage-Model-User-Guide.pdf 3 Environmental Protection Agency (EPA). Emission Factors Hub. April 1, 2022. Available at:
https://www.epa.gov/climateleadership/ghg-emission-factors-hub 4 Intergovernmental Panel on Climate Change (IPCC). 2014. AR5 Synthesis Report: Climate Change 2014. Available at:
https://www.ipcc.ch/report/ar5/syr/
The total natural gas consumption, combusted natural gas activity data, emissions factors, and GHG emissions associated with community natural gas use are summarized per building type and provider in Table 8.

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Campbell Climate Action & Adaptation Plan

12 Table 8 Community Residential and Commercial Natural Gas GHG Emissions Calculations
Sector
Activity Data
[therms]
End-use
Leakage
[therms]
Combustion Activity
Data
[therms]
Emissions
Factor
[MT
CO2e/therm]
GHG
Emissions
[MT CO2e]
Residential 5,813,399 29,067 5,784,332 0.005311 30,723
Commercial 2,813,524 14,068 2,799,456 0.005311 14,869
Notes: MT CO2e = Metric tons of carbon dioxide equivalent Energy: Natural Gas Methane Leaks
Natural gas methane leaks occur during delivery to the buildings and during associated end-uses in the community. Gas methane leaks from delivery occur in the pipeline distribution system and are, therefore, upstream of the delivery endpoints and not reflected in reported total natural gas usage.

While natural gas pipeline distribution leakage is technically outside of Campbell’s jurisdictional boundaries, the leakage is still directly impacted by natural gas consumption in the community. As leakage is directly connected to the community’s natural gas consumption, it is best practice to include leakage as an emissions sector in the Campbell’s 2022 Community GHG Inventory. Methane leaks from end-use – discussed previously – occur at the point-of-use in the city, and occur within Campbell’s jurisdictional boundaries.

Though a recommended source of emissions, the Community Protocol does not provide a specific calculation methodology for determining GHG emissions from natural gas leakage. Therefore, emissions from natural gas leaks were calculated using Equation 2-4, which estimates emissions in alignment with energy calculation principles set forth by the Community Protocol and the guidance provided under Community Protocol Section BE.5 Upstream Emissions from Energy Use. Table 9 shows the parameters and data sources associated with Equation 2-4, which were used to quantify GHG emissions from natural gas distribution and end-use leakage.

EQUATION 2-4
N

ATURAL GAS LEAKAGE SECTOR EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑒𝑒𝑒𝑒𝑁𝑁𝑙𝑙,𝑒𝑒 = 𝐸𝐸 𝐹𝐹𝑒𝑒 𝐸𝐸 𝑁𝑁𝑁𝑁,𝑒𝑒 × 𝐸𝐸𝐸𝐸𝑁𝑁𝑁𝑁 𝑒𝑒 𝑒𝑒𝑁𝑁 𝑙𝑙 × (𝐿𝐿𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑁𝑁𝑒𝑒 + 𝐿𝐿𝑒𝑒𝑒𝑒𝑁𝑁𝑒𝑒)

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Greenhouse Gas Inventory Analysis Report 13
Table 9 Emissions Parameters and Data Sources – Community Natural Gas Leaks Definition Parameter Value Unit Data Source
Annual GHG emissions from
natural gas distribution
leakage per building type
𝐶𝐶𝑂𝑂2𝑒𝑒𝑒𝑒𝑒𝑒𝑁𝑁𝑙𝑙,𝑒𝑒 S ee Table 10 MT CO2e/year Calculated Natural gas consumed per
building type
𝐸𝐸𝐹𝐹𝑒𝑒𝐸𝐸𝑁𝑁𝐺𝐺,𝑖𝑖 S ee Table 10 therms/year PG&E Community Report1 Emission factor for natural gas
leakage
𝐸𝐸𝐸𝐸𝑁𝑁𝐺𝐺 𝐸𝐸 𝑒𝑒 𝑙𝑙𝑙𝑙 0. 053067 MT
CO
2e/therm
Calculated2
Percent natural gas lost during
distribution
𝐿𝐿𝑑𝑑𝑖𝑖𝑑𝑑 𝑑𝑑 2. 3% Percent Alvarez, Ramón et al. (2018)3 Percent natural gas lost during
consumer end-use
𝐿𝐿𝑒𝑒𝑒𝑒𝑑𝑑𝐹𝐹𝑑𝑑𝑒𝑒 0. 5% Percent Environmental Defense Fund4 Building type (i.e., residential,
or commercial)
𝑖𝑖 Residential
Commercial
Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; therms = thermal unit 1 2022 PG&E Community Report Provided by the City on May 2024 via SharePoint. 2 Emission factor is calculated using the following equation:

2.85 𝐸𝐸
𝐹𝐹
𝑐𝑐𝑖𝑖
𝐸𝐸 𝑚𝑚𝑒𝑒
𝑑𝑑𝑒𝑒
𝑚𝑚𝑑𝑑
𝑑𝑑ℎ𝑒𝑒𝑚𝑚
𝑚𝑚 ∗ 95% 𝑚𝑚 𝑒𝑒𝑑𝑑ℎ𝑙𝑙 𝑒𝑒𝑒𝑒 𝐸𝐸𝑐𝑐𝑒𝑒𝑑𝑑𝑒𝑒 𝑒𝑒𝑑𝑑 ∗ 0.7 𝑙𝑙𝑘𝑘
𝐸𝐸 𝐹𝐹 𝑐𝑐𝑖𝑖 𝐸𝐸 𝑚𝑚𝑒𝑒 𝑑𝑑𝑒𝑒𝑚𝑚 ∗ 28 𝐶𝐶𝑂𝑂2𝑒𝑒
𝐶𝐶𝐻𝐻4
∗ 0.001 𝑀𝑀 𝑇𝑇
𝑙𝑙𝑘𝑘
3 Alvarez, Ramón et al. (2018). Assessment of methane emissions from the U.S. oil and gas supply chain. Science. 361. Accessed January 12, 2023, at: https://www.science.org/doi/abs/10.1126/science.aar7204 4 Environmental Defense Fund USER GUIDE FOR NATURAL GAS LEAKAGE RATE MODELING TOOL. Accessed January 12,2023 at:
https://www.edf.org/sites/default/files/US-Natural-Gas-Leakage-Model-User-Guide.pdf The total natural gas use and resulting leakage activity data, emissions factors, and GHG emissions per building type are summarized in Table 10.

Table 10 Community Natural Gas Methane Leaks GHG Emissions Calculations Natural Gas Sector
Leakage
Source
Activity Data
[therms]
Methane Leakage
[therms]
Emissions Factor
[MT CO2e/therm]
GHG Emissions
[MT CO2e]
Residential Distribution 5,813,399 133,708 0.053067 8,638 End-use 5,813,399 29,067 0.053067
Commercial Distribution 2,813,524 64,711 0.053067
4,181
End-use 2,813,524 14,068 0.053067
Notes: MT CO2e = Metric tons of carbon dioxide equivalent

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14 2.2.2 Transportation
Transportation: On-Road
On-road vehicles produce GHG emissions from the mobile combustion of fossil fuels (i.e., internal combustion engines) and from the production of electricity used by EVs. GHG emissions from the on-road transportation sector were calculated in accordance with Community Protocols TR.1.A and TR.2.B. The methodology leverages on-road transportation data from CARB’s 2021 Emission Factor (EMFAC2021) model.11 EMFAC2021 provides data at the countywide level.

The Community Protocol recommends the use of regional travel demand models to differentiate activity data by passenger, commercial, and bus vehicle miles travelled (VMT). This assessment utilizes data provided by Replica.12 Replica uses big data sources such as GPS, cell phone, credit card transactions, real estate data, and ground-truthing, along with powerful machine learning techniques, to generate a statewide land use and VMT model that is updated quarterly. For this assessment, Replica provided origin–destination average daily, weekday, and weekend VMT for each quarter of 2022 within Campbell. Quarterly daily VMT provided by Replica was averaged and scaled13 to determine 2022 VMT activity data. Replica does not have Bus VMT data for 2022.

Because of COVID-19 impacts to ridership, 2019 is considered the best proxy. VMT rates were averaged and scaled using the same techniques described above. The bus category includes EMFAC defined bus types such as school bus, urban bus, and other bus, which encompasses transit vehicles. 2019 bus data is considered to be the best proxy for 2022, as factors impacting bus ridership in 2019 and 2022 are most alike. Equation 2-5 and Table 11 define the equations, parameters, and data sources used to convert resulting Replica VMT activity data to GHG emissions from on-road transportation fuel combustion.

EQUATION 2-5
TR.1.A & TR.2.B ON-ROAD TRANSPORTATION COMBUSTION EMISSIONS 𝐶𝐶𝑂𝑂2𝑒𝑒𝑜𝑜𝑒𝑒𝑒𝑒𝑜𝑜𝑁𝑁𝑒𝑒,𝑒𝑒 = �𝑇𝑇𝑒𝑒 + 1
2 𝑇𝑇𝑂𝑂,𝑒𝑒 + 1
2 𝑇𝑇𝐷𝐷,𝑒𝑒� × 𝐸𝐸𝐸𝐸𝑁𝑁𝑒𝑒𝑒𝑒𝑜𝑜,𝑒𝑒

11 California Air and Resources Board. 2023. Emission Factor (EMFAC2021 v1.0.1) Model. Available at:
https://arb.ca.gov/emfac/emissions-inventory/5e0cb7d6006cc10661f4b3ffb9c120a486d46ea6 12 https://www.replicahq.com/
13 Weekend daily VMT is scaled assuming 104 weekend days in a year, while weekday daily VMT was scaled assuming 261 weekdays in a year.

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Table 11 Emissions Parameters and Data Sources – Community On-Road Transportation Definition Parameter Value Unit Data Source
Total annual community on-road GHG
emissions per vehicle class
𝐶𝐶𝑂𝑂2𝑒𝑒𝑂𝑂𝑒𝑒𝑒𝑒 𝑜𝑜𝑁𝑁𝑒𝑒 ,𝑒𝑒 S ee Table 14 MT CO2e/year Calculated VMT occurring within jurisdictional
boundaries per vehicle class
𝑇𝑇𝑖𝑖 See Table 14 miles Replica Model1
VMT originating within and terminating
outside of jurisdictional boundaries per
vehicle class
𝑇𝑇𝑂𝑂,𝑖𝑖 See Table 14 miles Replica Model
VMT originating outside of and terminating
within jurisdictional boundaries per vehicle
class
𝑇𝑇
𝐷𝐷,𝑖𝑖 See Table 14 miles Replica Model
Emissions factor for on-road vehicles per
vehicle class
𝐸𝐸𝐸𝐸𝑙𝑙𝐹𝐹𝑑𝑑𝑐𝑐,𝑖𝑖 S ee Table 14 MT CO2e/mile EMFAC2021 v1.0.12 Vehicle class 𝑖𝑖 Passenger
Commercial
Bus
Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; VMT = vehicle miles travelled 1 Replica VMT data for the City of Campbell provided via email in May 2024 2 California Air Resources Board (CARB). 2023. Emission Factor (EMFAC2021 v1.0.1) Model. Available at:
https://arb.ca.gov/emfac/emissions-inventory/5e0cb7d6006cc10661f4b3ffb9c120a486d46ea6 In addition to mobile combustion emissions accounted under Community Protocol Equations TR.1.A and TR.2.B, GHG emissions from electric vehicles were included in the City’s 2022 Community GHG Inventory for more accurate accounting of on-road transportation trends. This was achieved through modifications to Equation 2-5 to account for local EV modeshare estimates. Because EMFAC2021 considers EV vehicles to have an emissions factor of zero, Equation 2-6 is used to account for the emissions associated with electricity for those EV vehicles. The adjusted equation, parameters, and data sources used to estimate GHG emissions attributable to on-road EV activity are provided in Equation 2-6 and Table 12 below.

EQUATION 2-6

ON-ROAD TRANSPORTATION ELECTRIC VEHICLE EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑜𝑜𝑒𝑒𝑒𝑒𝑜𝑜𝑁𝑁𝑒𝑒,𝐸𝐸𝐸𝐸,𝑒𝑒 = �𝑇𝑇𝑒𝑒 + 1
2 𝑇𝑇𝑂𝑂,𝑒𝑒 + 1
2 𝑇𝑇𝐷𝐷,𝑒𝑒� × 𝐸𝐸𝐸𝐸𝑁𝑁ℎ𝑁𝑁 𝑒𝑒𝑒𝑒 ,𝑒𝑒 × 𝐸𝐸 𝐺𝐺𝑀𝑀𝑒𝑒 × 𝐸𝐸𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑗𝑗

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16 Table 12 Emissions Parameters and Data Sources – Community On-Road Transportation Definition Parameter Value Unit Data Source
Total annual community on-
road EV GHG emissions per
vehicle class
𝐶𝐶𝑂𝑂2𝑒𝑒𝑂𝑂𝑒𝑒𝑒𝑒 𝑜𝑜𝑁𝑁𝑒𝑒 ,𝐸𝐸𝐸𝐸,𝑒𝑒 S ee Table 14 MT CO2e/year Calculated VMT occurring within
jurisdictional boundaries per
vehicle class
𝑇𝑇
𝑖𝑖 See Table 13 miles Replica Model1
VMT originating within and
terminating outside of
jurisdictional boundaries per
vehicle class
𝑇𝑇𝑂𝑂,𝑖𝑖 See Table 13 miles Replica Model
Vehicle miles travelled
originating outside of and
terminating within
jurisdictional boundaries per
vehicle class
𝑇𝑇
𝐷𝐷,𝑖𝑖 See Table 13 miles Replica Model
Percent share of VMT
attributable to EVs
𝐸𝐸𝐸𝐸𝑑𝑑ℎ𝑙𝑙𝑚𝑚 𝑒𝑒 ,𝑖𝑖 S ee Table 13 % EMFAC2021 v1.0.12
Average rate of electricity
consumption per EV-mile per
vehicle class
𝐸𝐸 𝐺𝐺𝑀𝑀𝑖𝑖 See Table 13 kWh/mile EMFAC2021 v1.0.1
Weighted average electricity
emissions factor per building
type
𝐸𝐸𝐸𝐸𝑒𝑒𝐸𝐸𝑒𝑒 𝐸𝐸,𝑗𝑗 See Table 13 MT CO2e/kWh SVCE 2022 Electricity Report; PG&E Community Report
3 Vehicle class 𝑖𝑖 Passenger
Commercial
Bus
Categorical
Building type 𝑗𝑗 Residential
Commercial
Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; EV = electric vehicles; VMT = vehicle miles travelled; kWh = kilowatt hour 1 Replica VMT data for the City of Campbell provided via email May 2024 via Replica (and aggregated/ processed by Rincon for annualization, as described above).
2 California Air Resources Board (CARB). 2023. Emission Factor (EMFAC2021 v1.0.1) Model. Available at:
https://arb.ca.gov/emfac/emissions-inventory/5e0cb7d6006cc10661f4b3ffb9c120a486d46ea6 3 Silicon Valley Clean Energy (SVCE) 2022 Electricity Report, provided by the City via SharePoint and revised via email on May 29, 2024.

PG&E Community Report
Table 13 shows the VMT activity data for by vehicle class, as well as the EV share of VMT used to determine the electricity consumption associated with EV activity.

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Table 13 Community On-Road EV Activity Data Calculations Vehicle Class
VMT Activity
Data [miles] EV Share [%] EVMT [miles] EPM [kWh/mile]
EV Activity Data
[kWh]
Passenger 320,297,745 5.78% 18,523,456 0.37 6,932,044
Commercial 10,981,011 0.00% 0 0.00 0
Bus 1,096,229 0.12% 1,370 1.74 2,389
Notes: VMT = vehicle miles travelled; EV = electric vehicle; EPM = electricity per mile; EVMT = electric vehicle miles traveled; kWh = kilowatt hour
The activity data, emissions factors, and resulting GHG emissions from on-road transportation quantified in accordance with Equation 2-5 and Equation 2-6 are summarized in Table 14 below.

Table 14 Community On-Road Transportation GHG Emissions Calculations Sector Activity Data1 Emission Factor4
GHG Emissions
[MT CO2e]
Passenger VMT 320,297,745 VMT 0.000353 MT CO2e/mile 113,209 Commercial VMT 10,981,011 VMT 0.001425 MT CO2e/mile 15,647 Bus VMT 1,096,229 VMT 0.001459 MT CO2e/mile 1,599
Passenger EVMT1 6,932,044 kWh 0.000032 MT CO2e/kWh 223
Commercial EVMT2 0 kWh 0.000032 MT CO2e/kWh 0
Bus EVMT2 2,389 kWh 0.000032 MT CO2e/kWh <1
Total 130,679
Notes: VMT = vehicle miles traveled; EVMT = electric vehicle miles traveled; kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent
1 EV activity data does not include kWh associated with T&D losses as these emissions are considered negligible and are included under energy sector emissions.
2 Emissions factor for on-road passenger EV electricity use is weighted according to the portion of electricity supplied per provider in the residential electricity sector (see Table 4)
3 Emissions factor for on-road commercial and bus EV electricity use is weighted according to the portion of electricity supplied per provider in the residential electricity sector (see Table 4) 4 Emission factor does not account for electricity emissions for EVs (counts EV VMT as zero), and therefore applying this emission factor to total activity data does not result in double counting.

Transportation: Off-Road
Off-road equipment and vehicles – such as those used in agriculture, construction, lawn and garden, or recreational equipment – generate GHG emissions from the combustion of fossil fuels.

Community Protocol Equation TR.8 was used to quantify GHG emissions from off-road fuel consumption and is shown in Equation 2-7 below. Table 15 lists the parameters, values, and data sources used to quantify emissions in accordance with the Community Protocol.

EQUATION 2-7
TR.8 OFF-ROAD EQUIPMENT SECTOR EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑜𝑜𝑜𝑜𝑜𝑜𝑒𝑒 𝑜𝑜 𝑁𝑁𝑒𝑒,𝑗𝑗 = 𝐸𝐸𝐸𝐸𝑗𝑗 × � 𝐸𝐸 𝐹𝐹𝑒𝑒 𝐸𝐸 𝑜𝑜𝑜𝑜𝑜𝑜𝑒𝑒 𝑜𝑜 𝑁𝑁𝑒𝑒,𝑒𝑒,𝑗𝑗 𝑒𝑒
× 𝐴𝐴 𝐸𝐸𝑒𝑒

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18 Table 15 Emissions Parameters and Data Sources – Community Off-Road Equipment Definition Parameter Value Unit Data Source
Annual GHG emissions from
offroad equipment
𝐶𝐶𝑂𝑂2𝑒𝑒𝑐𝑐𝑜𝑜 𝑜𝑜 𝑚𝑚𝑐𝑐𝑙𝑙𝑑𝑑,𝑗𝑗 S ee Table 17 MT CO2e/year Calculated Annual fuel consumption in
the County per sector per fuel
type
𝐸𝐸𝐹𝐹𝑒𝑒𝐸𝐸𝑜𝑜𝑜𝑜𝑜𝑜𝑒𝑒𝑜𝑜𝑁𝑁 𝑒𝑒 ,𝑒𝑒,𝑗𝑗 S ee Table 17 Gallons/year OFFROAD20211 Fuel attribution factor per
equipment type
𝐴𝐴𝐸𝐸𝑒𝑒 S ee Table 16 Percent Plan Bay Area 2050 Growth
Forecast applied to City of
Campbell 6
th Cycle Housing
Element Data2
Emission factor per fuel type 𝐸𝐸𝐸𝐸𝑗𝑗 See Table 17 MT CO2e/gallon EPA Emission Factors Hub3 Equipment Type 𝑖𝑖 See Table 16 Categorical OFFROAD2021
Fuel type 𝑗𝑗 Gasoline
Diesel
Natural Gas
Categorical OFFROAD2021
Notes: MT CO2e = Metric tons of carbon dioxide equivalent 1 California Air Resource Board (CARB). 2023. Mobile Source Emissions Inventory Off-road (OFFROAD2021 v1.0.3). Available at:
https://arb.ca.gov/emfac/emissions-inventory/5e0cb7d6006cc10661f4b3ffb9c120a486d46ea6 2 Plan Bay Area 2050 households and job projections for super districts 10 and 11, applied to Population; Housing; Job data referenced from Census and Department of Finance Data used in Campbell’s 2023 Housing Element. campbellca.gov/DocumentCenter/View/19775/Revised-3rd-HCD-Submittal-Draft-of-6th-Cycle-Housing-Element-Clean; https://planbayarea.org/sites/default/files/FinalBlueprintRelease_December2020_GrowthPattern_Jan2021Update.pdf 3 Environmental Protection Agency (EPA). 2022. GHG Emission Factors Hub. Available at: https://www.epa.gov/climateleadership/ghg- emission-factors-hub
Table 16The data used for off-road equipment fuel consumption was at the countywide level. These values were scaled based on Campbell’s population, jobs, and land use. The demographic attribution metrics and percent attribution used for each off-road equipment type is shown in Table

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Table 16 Community Off-Road Equipment Sector Attributions Equipment Type Attribution Metric Attribution Data Source Agricultural Excluded - Other 0.0000 Not Applicable
Airport Excluded - Other 0.0000 Not Applicable
Cargo Excluded - Other 0.0000 Not Applicable
Commercial Excluded - Other 0.0000 Not Applicable
Construction Employment 0.0248 Plan Bay Area 2050 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data2
Industrial Employment 0.0248 Plan Bay Area 2050 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data
Lawn Population 0.0232 Plan Bay Area 2050 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data
Light Employment 0.0248 Plan Bay Area 2050 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data
Locomotive Excluded - Not Under
Jurisdictional Control

0.0000 Not Applicable
Ocean Excluded - Other 0.0000 Not Applicable
Oil Excluded - Not Under
Jurisdictional Control

0.0000 Not Applicable
Outboard Excluded - Not Under
Jurisdictional Control

0.0000 Not Applicable
Pleasure Population 0.0232 Plan Bay Area 2050 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data
Portable Employment 0.0248 Plan Bay Area 2050 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data
Transport Employment 0.0248 Plan Bay Area 2050 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data
Recreational Households 0.0249 Plan Bay Area 2040 Growth Forecast applied to City of Campbell 6th Cycle Housing Element Data
Military Excluded - Other 0.0000 Not Applicable
Forestry Excluded - Other 0.0000 Not Applicable
1 Agriculture and forestry were excluded due to lack of activity within Campbell’s city limits. Same for ocean-related values (Campbell is land-locked) as well as Military bases.
2 Plan Bay Area 2050 households and job projections for super district 10 and 11, applied to Population; Housing; Job data referenced from Census and Department of Finance Data used in Campbell’s 2023 Housing Element. mpbellca.gov/DocumentCenter/View/19775/Revised-3rd-HCD-Submittal-Draft-of-6th-Cycle-Housing-Element-Clean; https://planbayarea.org/sites/default/files/FinalBlueprintRelease_December2020_GrowthPattern_Jan2021Update.pdf The allocated and aggregated activity data by fuel type, emission factors, and emissions results for the Campbell’s off-road equipment sector are provided in Table 17.

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20 Table 17 Community Off-Road GHG Emissions Calculations Fuel Type
Activity Data
(gallons)
Emission Factor
(MT CO2e/gallon)1
GHG Emissions
(MT CO2e)
Diesel 489,670 0.010469 5,126
Gasoline 544,699 0.009202 5,012
Natural Gas 455,785 0.005862 2,672
Total 12,811
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; Values may not add due to rounding 1 Emission factors per fuel type represent a weighted average based on the emissions factor and fuel consumption per off-road equipment type as determined according to EPA’s Emissions Factor Hub available at: https://www.epa.gov/climateleadership/ghg- emission-factors-hub

2.2.3 Solid Waste
GHG emissions associated with the waste sector result from the decomposition of waste at a landfill. Emissions from landfill processes were not available and were excluded. West Valley Collection and Recycling, LLC. (WVC&R) provides hauling for residential and commercial solid waste, recycling, and organics collection services. WVC&R is governed by the West Valley Solid Waste Authority (WVSWA), which is a joint power authority comprising the City of Campbell, Town of Los Gatos, City of Saratoga, and City of Monte Sereno. WVSWA contracts with Waste Management, which runs the Guadalupe Landfill located in San Jose, California. Recycling and organics recovery are sent offsite for processing, as per the most recent agreement signed between WVSWA and Waste Management in 2021.
14 GHG emissions from waste decomposition were calculated using Community Protocol Method SW.4. Equation 2-8 and Table 18 provide the calculation method, associated parameters, and data sources used to quantify GHG emissions in accordance with Community Protocol SW.4. As the City of Campbell did not have a waste categorization study to inform the proportion of total waste material per material type, the default ICLEI factor was used.

EQUATION 2-8
SW.4.1

SOLID WASTE FUGITIVE EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑁𝑁𝑁𝑁𝑒𝑒𝑒𝑒,𝑜𝑜 𝑒𝑒 𝑓𝑓𝑒𝑒 𝑒𝑒𝑒𝑒𝑓𝑓𝑒𝑒 = 𝐺𝐺𝐺𝐺𝐺𝐺𝐶𝐶𝐻𝐻4 × (1 − 𝐶𝐶 𝐸𝐸) × (1 − 𝑂𝑂𝑂𝑂) × 𝑀𝑀 × � 𝐺𝐺𝑒𝑒 × 𝐸𝐸𝐸𝐸𝑒𝑒 𝑒𝑒

14 https://www.wvswma.org/uploads/2/5/7/3/25736194/2021_wm_disposal_agreement.pdf

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Table 18 Emissions Parameters and Data Sources – Community Solid Waste Definition Parameter Value Unit Data Source
Annual community
generated waste GHG
emissions
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑁𝑁 𝑁𝑁𝑒𝑒𝑒𝑒 ,𝑜𝑜 𝑒𝑒 𝑓𝑓𝑒𝑒𝑒𝑒 𝑒𝑒 𝑓𝑓𝑒𝑒 9, 388 MT CO2e/year Calculated Methane global
warming potential
𝐺𝐺𝐺𝐺𝐺𝐺
𝐶𝐶𝐻𝐻4 28 IPCC Fifth Assessment Report1
Default LFG collection
efficiency
𝐶𝐶 𝐸𝐸 0. 75 Fraction ICLEI Community Protocol
Oxidation rate 𝑂𝑂𝑂𝑂 0.10 Fraction ICLEI Community Protocol Total mass of waste
entering landfill
𝑀𝑀 24,835 Tons West Valley Solid Waste
Management Authority
2 Proportion of total
waste material per
material type
𝐺𝐺𝑖𝑖 1 Fraction
Emission factor per
material type
4 𝐸𝐸𝐸𝐸𝑖𝑖 0.060 MT CH4/ton ICLEI Community Protocol
Material type 𝑖𝑖 Multiple Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent 1 Intergovernmental Panel on Climate Change (IPCC). 2014. AR5 Synthesis Report: Climate Change 2014. Available at:
https://www.ipcc.ch/report/ar5/syr/
2 Tons of waste activity data provided by the City of Campbell via SharePoint in May 2024 Guadalupe Landfill is located outside of Campbell. Therefore, energy consumption for landfill processes is not incorporated under the energy sector of Campbell’s 2022 GHG Inventory. Instead, Landfill process emissions were quantified according to Community Protocol SW.5, which is outlined in Equation 2-9 and Table 19 below and are included in the solid waste sector of this inventory.

Landfill processing uses either compressed natural gas (CNG) or diesel. As information was not available, the Rincon team conservatively assumed diesel is being used for processes at the landfill, as diesel has a more intensive GHG emission factor.

EQUATION 2-9
SW.5 SOLID WASTE PROCESS EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑁𝑁𝑁𝑁𝑒𝑒𝑒𝑒,𝑝𝑝𝑒𝑒𝑜𝑜𝑒𝑒 𝑒𝑒𝑁𝑁𝑁𝑁 = 𝑀𝑀 × 𝐸𝐸𝐸𝐸𝑝𝑝
Table 19 Emissions Parameters and Data Sources – Community Solid Waste Definition Parameter Value Unit Data Source
Annual landfill process GHG
emissions
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑁𝑁 𝑁𝑁𝑒𝑒𝑒𝑒 ,𝑝𝑝𝑒𝑒 𝑜𝑜𝑒𝑒𝑒𝑒𝑁𝑁𝑁𝑁 407 MT CO2e/year Calculated Total mass of solid waste that
enters the landfill in the
inventory year
𝑀𝑀 24,835 Wet short tons/year WVC&R
Emissions factor for landfill
process emissions

𝐸𝐸𝐸𝐸𝑝𝑝 0.0164 MT CO2e/wet short ton ICLEI Community
Protocol- Assumed Diesel
Notes: MT CO2e = Metric tons of carbon dioxide equivalent 1 Tons of waste activity data provided by the City of Campbell Via SharePoint in May 2024.

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22 The total GHG emissions from solid waste emissions sources are summarized in Table 20.

Table 20 Community Solid Waste Tonnage Allocation
Emissions Source GHG Emissions [MT CO2e/year]
Landfill Fugitive Emissions 9,388
Landfill Process Emissions1 407
Total 9,795
Notes: MT CO2e = Metric tons of carbon dioxide equivalent 1 As Scholl Canyon Landfill is within city boundaries and is owned and operated by the City, process related emissions are anticipated to be included under energy sector GHG emissions and thus are excluded from total GHG emissions attributable to the solid waste sector.

2.2.4 Water
Campbell receives all water from the San Jose Water Company (SJWC), which is located outside of Campbell. As a result, this water is considered imported/purchased, rather than local. Rincon accounted for the energy used for water conveyance, treatment, and delivery to Campbell using SJWC reported energy intensity and total water consumed by Campbell. SJWC purchases electricity from Silicon Valley Clean Energy (GreenStart) and from San Jose Clean Energy (GreenValue).15 The energy intensity provided as part of its most recent (2020) Urban Water Management Plan provided lifecycle kWh intensity values for water delivered to SJWC customers.

Table 21 shows the parameters and data sources associated with Equation 2-10, which were used to quantify GHG emissions from imported water sources.

EQUATION 2-10
WW.14 WATER SECTOR EMISSIONS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑁𝑁𝑒𝑒𝑒𝑒𝑒𝑒,𝑒𝑒 = 𝐸𝐸 𝑐𝑐𝐸𝐸 𝑒𝑒 × � 𝐸𝐸𝐸𝐸𝑒𝑒,𝑗𝑗 × 𝐸𝐸𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑒𝑒,𝑗𝑗 𝑗𝑗

15 Assumed GreenStart and GreenValue as SJWC documentation did not confirm that the rate was 100% renewable. Accordingly, the less renewable intensive value was chosen. As there was no breakdown in kWh by electricity provider, an average was taken of both providers’ emissions factors.

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Table 21 Emissions Parameters and Data Sources – Community Water Definition Parameter Value Unit Data Source
Annual GHG emissions from
water consumption
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑁𝑁 𝑒𝑒𝑒𝑒𝑒𝑒 ,𝑒𝑒 98 MT CO2e/year Calculated
Volume of water supplied to
the community per water
district
𝐸𝐸 𝑐𝑐𝐸𝐸𝑖𝑖 1, 493 MG [million
gallons]
SJWC 2022 Report1
Energy intensity of water
distribution
𝐸𝐸𝐸𝐸𝑖𝑖,𝑗𝑗 1,031 kWh/MG SJWC 2020 UWMP2
Electricity emissions factor
per water process stage per
source type
𝐸𝐸𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑒𝑒,𝑗𝑗 0.00006395664 MT CO2e/kWh SJWC Correspondence3 SJWC 2020 UWMP

SVCE & SJCE
Water process stage 𝑗𝑗 Distribution Categorical
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; AF = acre-feet; kWh = kilowatt hour; UWMP = Urban Water Management Plan
1 San Jose Water Company 2022 Report Provided by the City in May 2024 2 San Jose Water Company UWMP Section 6.11- Energy Use (Lifecycle): https://www.sjwater.com/sites/default/files/2021- 06/2020%20UWMP%20FINAL%20with%20Appendices.pdf
3 May correspondence with City and San Jose Water Company confirms renewable energy purchase claim made in 2020 UWMP, leading to use of SVCE GreenStart emissions factor. SJCE emissions factor obtained via published 2022 power content label:
https://sanjosecleanenergy.org/wp-content/uploads/2023/09/SJCE-2022-Power-Content-Label.pdf 4 Note that as reported data did not articulate the kwh split between SJWC, and SJCE, a 50/50 split was assumed, and an average was taken between both emissions factors.

2.2.5 Wastewater
Management of wastewater can produce emissions through every stage of the process—from collection to final use or discharge. The City of Campbell contracts the West Valley Sanitation District (WVSD) for wastewater collection, transport, and disposal services. WVSD operates and maintains the wastewater collection system serving Campbell, Los Gatos, Monte Sereno, and a portion of unincorporated Santa Clara County. Because WVSD uses gravity to convey wastewater, there are no conveyance-related emissions.16
WVSD contracts the Santa Clara Regional Wastewater Facility (SCRWF) for wastewater treatment and disposal, thereby conveying all collected wastewater to the SCRWF plant. SCRWF is a centralized water treatment plant featuring anaerobic digestion and using nitrification and denitrification for processing wastewater. The outfall from SCRWF is then discharged to South San Francisco Bay through the outfall channel after tertiary treatment. Currently, SCRWF processes wastewater for 1.4 million customers and 17,000 businesses in total. As the community of Campbell only represents a portion of this, the GHG emissions attributable to Campbell’s community inventory is based on Campbell’s proportion of the total population served by the District (a population of 43,930 Campbell residents in 2022).
17 GHG emissions from SCRWF operations are a result of process emissions from the combustion of anaerobic digester gas, (see Equation 2-11 and Equation 2-12, which are respectively described in

16 May 2024 Email Correspondence with City of Campbell. 17 https://www.sanjoseca.gov/your-government/departments-offices/environmental-services/water-utilities/regional-wastewater- facility- n ote that the WWTP initially supplied an estimate of 42 ,800 customers, which is lower than the number of residents estimated once Plan Bay Area 2050 factors were used to scale 2020 population estimates from the 6th Cycle Housing element. To stay consistent with other CAAP metrics informed by demographic projections, the 2022 population estimate was used instead of the wastewater treatment method supplied number.

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24 Table 22 and Table 23), nitrification/denitrification (see Equation 2-13and Table 24), wastewater outfall into San Francisco Bay (see Equation 2-14 and Table 25). Additionally, SCRWF provided electricity and natural gas consumption data, which were accounted for as well under Equation 2-15, Equation 2-16, Table 26, and Table 27.

EQUATION 2-11
WW.1.B WASTEWATER DIGESTER GAS STATIONARY COMBUSTION EMISSIONS (CH4) – WHEN BTU

CONTENT IS KNOWN
𝐴𝐴𝑒𝑒𝑒𝑒𝐹𝐹𝑙𝑙 𝐸𝐸 𝐶𝐶 𝐻𝐻4 𝑒𝑒𝑚𝑚 𝑖𝑖𝑑𝑑𝑑𝑑𝑖𝑖𝑐𝑐 𝑒𝑒𝑑𝑑
= �𝐷𝐷𝑖𝑖
𝑘𝑘𝑒𝑒𝑑𝑑𝑑𝑑𝑒𝑒𝑚𝑚 𝐺𝐺𝑙𝑙𝑑𝑑 × 𝐵𝐵
𝑇𝑇𝐵𝐵𝑒𝑒𝑒𝑒𝑓𝑓𝑒𝑒𝑁𝑁𝑒𝑒𝑒𝑒𝑒𝑒 𝑁𝑁 𝑁𝑁𝑁𝑁 × 10−6 × 𝐸𝐸𝐸𝐸𝐶𝐶𝐻𝐻4 × 10−3�

Table 22 Emissions Parameters and Data Sources – Community Wastewater WW.1B Definition Parameter Value Unit Data Source
Total annual GHG emitted
by devices designed to
combust digester gas
𝐴𝐴𝑒𝑒 𝑒𝑒𝐹𝐹𝑙𝑙𝐸𝐸 𝐶𝐶 𝐻𝐻4 𝑒𝑒𝑚𝑚 𝑖𝑖𝑑𝑑𝑑𝑑𝑖𝑖𝑐𝑐 𝑒𝑒𝑑𝑑 S ee Table 28 MT CO
2e/year
Calculated
Standard cubic feet of
digester gas produced per
day (std ft
3/day)
𝐷𝐷𝑖𝑖 𝑘𝑘𝑒𝑒𝑑𝑑𝑑𝑑𝑒𝑒𝑚𝑚 𝐺𝐺𝑙𝑙𝑑𝑑 55,270 std ft3/day San Jose-Santa Clara Regional Wastewater Facility
Provided Data – Scaled Using
Campbell 2022 Population1
BTU content of digester gas,
higher heating value
𝐵𝐵 𝑇𝑇𝐵𝐵𝐷𝐷𝑒𝑒 𝑓𝑓𝑒𝑒𝑁𝑁𝑒𝑒𝑒𝑒𝑒𝑒 𝑁𝑁𝑁𝑁 𝑁𝑁 597 BTU/scf San Jose- Santa Clara Regional Wastewater
Provided Data
2 Conversion factor 10−6 0.000001 mmBTU/BTU ICLEI Community Protocol Methane emissions factor 𝐸𝐸𝐸𝐸𝐶𝐶𝐻𝐻4 0. 0032 kg CH4/
mmBTU
ICLEI Community Protocol
Conversion factor 365.25 365.25 Days/year ICLEI Community Protocol Conversion factor 10−3 0.001 MT/kg ICLEI Community Protocol Global warming potential of
methane
𝐺𝐺𝐺𝐺𝐺𝐺𝐶𝐶𝐻𝐻4 28 IPCC Fifth Assessment
Report
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; std ft3 = standard cubic feet; BTU = British thermal unit; mmBTU = one million British thermal units; kg = kilograms.
1 Standard cubic feet of gas produced per day for entire wastewater operation provided by the San Jose Santa Clara Wastewater Facility and scaled to the size of Campbell (based on population) which was calculated using 2020 base data and Plan Bay Area 2050 growth rates to obtain 2022 population data. Campbell’s population comprises approximately 3.14% of the entire population served by the wastewater treatment plant. The population, not service population (employment + population) was used to allocate Campbell’s emissions from the entire wastewater treatment plant as the wastewater treatment plant supplied a Campbell customer number that was slightly lower than 2022 population values calculated as part of the inventory. Accordingly, the 2022 population value was the closest match to wastewater treatment plant provided data while remaining consistent with the demographics used across the inventory.
2 Provided to City staff and Project Team via email in April 2024.

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EQUATION 2-12
WW.2.B WASTEWATER DIGESTER GAS STATIONARY COMBUSTION EMISSIONS (N2O) – WHEN BTU

CONTENT IS KNOWN
𝐴𝐴𝑒𝑒𝑒𝑒𝐹𝐹𝑙𝑙 𝐸𝐸 𝑁𝑁2 𝑂𝑂 𝑒𝑒𝑚𝑚 𝑖𝑖𝑑𝑑𝑑𝑑𝑖𝑖𝑐𝑐𝑒𝑒𝑑𝑑
= �𝐷𝐷𝑖𝑖
𝑘𝑘𝑒𝑒𝑑𝑑𝑑𝑑𝑒𝑒𝑚𝑚 𝐺𝐺𝑙𝑙𝑑𝑑 × 𝐵𝐵
𝑇𝑇𝐵𝐵𝑒𝑒𝑒𝑒𝑓𝑓𝑒𝑒𝑁𝑁𝑒𝑒𝑒𝑒𝑒𝑒 𝑁𝑁 𝑁𝑁𝑁𝑁 × 10−6 × 𝐸𝐸𝐸𝐸𝑁𝑁20 × 10−3�

Table 23 Emissions Parameters and Data Sources – Community Wastewater WW.2.B Definition Parameter Value Unit Data Source
Total annual GHG emitted
by devices designed to
combust digester gas
𝐴𝐴𝑒𝑒 𝑒𝑒𝐹𝐹𝑙𝑙𝐸𝐸 𝑁𝑁2𝑂𝑂 𝑒𝑒𝑚𝑚 𝑖𝑖𝑑𝑑𝑑𝑑𝑖𝑖𝑐𝑐𝑒𝑒𝑑𝑑 S ee Table 28 MT CO
2e/year
Calculated
Standard cubic feet of
digester gas produced per
day (std ft3/day)
𝐷𝐷𝑖𝑖 𝑘𝑘𝑒𝑒𝑑𝑑𝑑𝑑𝑒𝑒𝑚𝑚 𝐺𝐺 𝑙𝑙𝑑𝑑 55, 270 std ft3/day San Jose-Santa Clara Regional Wastewater
Facility Provided Data –
Scaled Using Campbell
2022 Population1
BTU content of digester gas,
higher heating value
𝐵𝐵 𝑇𝑇𝐵𝐵𝐷𝐷𝑒𝑒 𝑓𝑓𝑒𝑒𝑁𝑁𝑒𝑒𝑒𝑒𝑒𝑒 𝑁𝑁𝑁𝑁 𝑁𝑁 597 BTU/scf San Jose-Santa Clara Regional Wastewater
Provided Data
2 Rate of digester gas volume
production
𝐷𝐷𝑖𝑖 𝑘𝑘𝑒𝑒𝑑𝑑𝑑𝑑𝑒𝑒𝑚𝑚 𝐺𝐺 𝑙𝑙𝑑𝑑 1. 00 std ft3/
person/day
ICLEI Community Protocol
Conversion factor 10−6 0.000001 mmBTU/BTU ICLEI Community Protocol Nitrous Oxide Emission
Factor
𝐸𝐸𝐸𝐸
𝑁𝑁2𝑂𝑂 0.00063 kg CH4/
mmBTU
ICLEI Community Protocol
Conversion factor 365.25 365.25 Days/year ICLEI Community Protocol Conversion factor 10−3 0.001 MT/kg ICLEI Community Protocol Global warming potential of
nitrous oxide
𝐺𝐺𝐺𝐺𝐺𝐺
𝑁𝑁2𝑂𝑂 265 IPCC Fifth Assessment
Report
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; std ft3 = standard cubic feet; BTU = British thermal unit; mmBTU = one million British thermal units; kg = kilograms.
1 Standard cubic feet of gas produced per day for entire wastewater operation provided by the San Jose Santa Clara Wastewater Facility and scaled to the size of Campbell (based on population) which was calculated using 2020 base data and Plan Bay Area 2050 growth rates to obtain 2022 population data. Campbell’s population comprises approximately 3.14% of the entire population served by the wastewater treatment plant. The population, not service population (employment + population) was used to allocate Campbell’s emissions from the entire wastewater treatment plant as the wastewater treatment plant supplied a Campbell customer number that was slightly lower than 2022 population values calculated as part of the inventory. Accordingly, the 2022 population value was the closest match to wastewater treatment plant provided data while remaining consistent with the demographics used across the inventory.
2 Provided to City staff and Project Team via email in April 2024.

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26 EQUATION 2-13
WW.7 CENTRALIZED WWTP WITH NITRIFICATION/DENITRIFICATION 𝐶𝐶
𝑂𝑂2𝑒𝑒𝑊𝑊𝑊𝑊,𝑒𝑒 𝑒𝑒𝑒𝑒 /𝑒𝑒 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 ,𝑒𝑒 = ((𝐺𝐺 × 𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒−𝑒𝑒 𝑜𝑜 𝑐𝑐) × 𝐸𝐸𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒/𝑒𝑒 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 × 10−6) × 𝐺𝐺𝐺𝐺𝐺𝐺𝑁𝑁2𝑂𝑂

Table 24 Emissions Parameters and Data Sources – Community Wastewater WW.7 Definition Parameter Value Unit Data Source
Total annual GHG emitted by
WWTP processes
𝐶𝐶 𝑂𝑂2𝑒𝑒𝐺𝐺𝐺𝐺,𝑒𝑒 𝑖𝑖𝑑𝑑 /𝑑𝑑𝑒𝑒 𝑒𝑒𝑖𝑖 𝑑𝑑,𝑖𝑖 S ee Table 28 MT CO2e/year Calculated Population served1 𝐺𝐺 43, 930 People City of Campbell 6th Cycle housing Element & Plan Bay
Area 2050 Growth Forecast1
Factor for insignificant
industrial or commercial
discharge
𝐸𝐸𝑖𝑖𝑒𝑒𝑑𝑑−𝐸𝐸 𝑐𝑐𝑚𝑚 1.00 – ICLEI Community Protocol
Emissions factor for a WWTP
without nitrification or
denitrification
𝐸𝐸𝐸𝐸𝑤𝑤/𝑐𝑐 𝑒𝑒 𝑖𝑖𝑑𝑑 /𝑑𝑑𝑒𝑒 𝑒𝑒𝑖𝑖 𝑑𝑑 7. 00 g N2O/person/
year
ICLEI Community Protocol
Conversion factor 10−6 0.000001 Mt/g –
Global warming potential of
nitrous oxide
𝐺𝐺𝐺𝐺𝐺𝐺𝑁𝑁2𝑂𝑂 265 IPCC Fifth Assessment Report
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; std ft3 = standard cubic feet; BTU = British thermal unit; mmBTU = one million British thermal units; kg = kilograms.
1 Campbell (based on population), which was calculated using 2020 base data and Plan Bay Area 2050 growth rates to obtain 2022 population data. Campbell’s population comprises approximately 3.14% of the entire population served by the wastewater treatment plant. The population, not service population (employment + population) was used to allocate Campbell’s emissions from the entire wastewater treatment plant as the wastewater treatment plant supplied a Campbell customer number that was slightly lower than 2022 population values calculated as part of the inventory. Accordingly, the 2022 population value was the closest match to wastewater treatment plant provided data while remaining consistent with the demographics used across the inventory.

Community Protocol Equation WW.12 was used to quantify emissions associated with the San Jose- Santa Clara Regional Wastewater Treatment Facility effluent discharge into the South San Fransisco Bay. Like all other parts of the wastewater treatment facility emissions, activity data has also been scaled to represent Campbell’s proportional contribution to total GHG emissions (3.14 percent of total). The equation is provided in Equation 2-14, as shown below.

EQUATION 2-14
WW.12 FUGITIVE NITROUS OXIDE EMISSIONS FROM EFFLUENT DISCHARGE 𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑊𝑊,𝑒𝑒 𝑜𝑜𝑜𝑜𝑒𝑒 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = 𝑁𝑁 𝐿𝐿𝑐𝑐 𝑙𝑙𝑑𝑑 × 𝐸𝐸𝐸𝐸𝑒𝑒𝑜𝑜𝑜𝑜𝑒𝑒 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 ,𝑒𝑒 × 44 28 × 365.25 × 10−3 × 𝐺𝐺𝐺𝐺𝐺𝐺𝑁𝑁2𝑂𝑂

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Greenhouse Gas Inventory Analysis Report 27
Table 25 Emissions Parameters and Data Sources – Community Wastewater WW.12 Definition Parameter Value Unit Data Source
Annual N2O emitted by
effluent processes
𝐶𝐶 𝑂𝑂2𝑒𝑒𝐺𝐺𝐺𝐺,𝑒𝑒𝑜𝑜 𝑜𝑜𝐸𝐸𝐹𝐹 𝑒𝑒𝑒𝑒 𝑑𝑑 S ee Table 28 MT CO2e/year Calculated Average total nitrogen per
day
𝑁𝑁 𝐿𝐿 𝑐𝑐𝑙𝑙𝑑𝑑 109 kg N/day SJSCWWTP Report1
Emissions factor of
discharge to water body
type (ocean)
𝐸𝐸𝐸𝐸𝑒𝑒𝑜𝑜 𝑜𝑜𝐸𝐸𝐹𝐹 𝑒𝑒𝑒𝑒 𝑑𝑑,𝑖𝑖 0.00 25 kg N2O-N/kg
sewage-N
discharged
ICLEI Community Protocol,
selected for ‘Ocean
Discharge’ as discharge
point is San Francisco Bay
Molecular weight ratio of
N
2O to N2
44 28

1.57 Fraction
Conversion factor 365.25 365.25 Days/year
Conversion factor 10−3 0.001 MT/kg
Global warming potential
of nitrous oxide
𝐺𝐺𝐺𝐺𝐺𝐺
𝑁𝑁2𝑂𝑂 265 – IPCC Fifth Assessment
Report
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; std ft3 = standard cubic feet; kg = kilograms 1 Report provided to the City via Email and Project Team via SharePoint in April 2024.

The SJSCWWTP is located outside of Campbell, which means that electricity and natural gas used at the WRP is not captured under community commercial energy use. Community Protocol Equation WW.15 was used to determine SJSCWWTP emissions from electricity and natural gas, adjusted to allocate emissions attributable to the Campbell community. It should be noted that ICLEI does not provide a specific formula to calculate natural gas use for WWTP operations, so the same methodology used for the rest of the community inventory was repeated here as a variation on WW.15, coded as WW.15-NG.

According to data provided by SJSCWWTP, both electricity and natural gas are purchased from PG&E, rather than SVCE. Accordingly, PG&E’s emission factor is used to calculate energy emissions from consumption of electricity and natural gas at the plant.

EQUATION 2-15
WW.15 ENERGY-RELATED EMISSIONS ASSOCIATED
WITH WASTEWATER COLLECTION AND TREATMENT – ELECTRICITY
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑊𝑊𝑒𝑒𝑒𝑒 𝑒𝑒𝑒𝑒 = (𝐸𝐸𝐸𝐸𝑒𝑒𝐸𝐸𝑊𝑊𝑊𝑊,𝑒𝑒 + (𝐸𝐸𝐸𝐸𝑒𝑒𝐸𝐸𝑊𝑊𝑊𝑊,𝑒𝑒 × 𝑇𝑇 𝐷𝐷) × 𝐸𝐸𝐸𝐸𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒,𝑒𝑒)

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28 Table 26 Emissions Parameters and Data Sources – Community Wastewater WW.15 Definition Parameter Value Unit Data Source
Total annual GHG emitted
by WWTP electricity use
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑊𝑊𝑒𝑒𝑒𝑒 𝑒𝑒𝑒𝑒 S ee Table 28 MT CO2e/year Calculated Electricity use of WWTP 𝐸𝐸𝐸𝐸𝑒𝑒 𝐸𝐸𝑊𝑊𝑊𝑊,𝑒𝑒 480, 749 kWh WWTP Utility Data, allocated to Campbell Population
1 T&D Loss Factor 𝑇𝑇𝐷𝐷 5.1% Percentage EPA2
PG&E electricity emission
factor
𝐸𝐸𝐸𝐸
𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 0.0000263 MT CO2e/kWh PG&E3
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; MG = million gallons; AF = acre-feet; kWh = kilowatt hour 1 Annual kWh purchased from PG&E provided to City via email in May 2024. Population data calculated using 2023 6th Cycle housing element as base data. Original PG&E purchased electricity = 15,321 kWh, scaled by 3.14% allocated to Campbell population as a percentage of total WWTP population served.
2 Environmental Protection Agency (EPA). 2023. Data Explorer, grid loss rates, 2016. Available at: https://www.epa.gov/egrid/data- explorer
3 PG&E 2022 vie The Climate Registry: https://theclimateregistry.org/resources/carbon-footprint-registry/ EQUATION 2-16
WW.15-NG ENERGY-RELATED EMISSIONS ASSOCIATED
WITH WASTEWATER COLLECTION AND TREATMENT – NATURAL GAS
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑊𝑊𝑒𝑒 𝑓𝑓 = (𝑁𝑁 𝐺𝐺𝑊𝑊𝑊𝑊𝑒𝑒𝑜𝑜𝑒𝑒𝑁𝑁 × 𝐸𝐸𝐸𝐸𝑒𝑒𝑓𝑓𝑒𝑒𝑜𝑜𝑐𝑐) + (𝑁𝑁 𝐺𝐺𝑊𝑊𝑊𝑊𝑒𝑒𝑒𝑒𝑁𝑁𝑙𝑙 × 𝐸𝐸𝐸𝐸𝑒𝑒𝑓𝑓𝑒𝑒𝑒𝑒𝑁𝑁𝑙𝑙)

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Table 27 Emissions Parameters and Data Sources – Community Wastewater WW.15 Definition Parameter Value Unit Data Source
Total annual GHG emitted
by WWTP natural gas use
𝐶𝐶𝑂𝑂2𝑒𝑒𝑊𝑊𝑊𝑊𝑒𝑒𝑓𝑓 S ee Table 28 MT CO2e/year Calculated
Natural gas use of WWTP –
consumed natural gas
𝑁𝑁𝐺𝐺𝑊𝑊𝑊𝑊𝐸𝐸𝑐𝑐𝑒𝑒 𝑑𝑑 118, 720 therms WWTP Utility Data, allocated to Campbell Population
1 Natural gas use of WWTP –
combusted natural gas
[minus upstream leakage]
𝑁𝑁 𝐺𝐺𝑊𝑊𝑊𝑊𝐸𝐸𝑐𝑐𝑚𝑚𝑐𝑐 118, 127 therms WWTP Utility Data, allocated to Campbell Population;
minus upstream leakage
perecntage
2 Natural gas allocated
leakage from WWTP
𝑁𝑁 𝐺𝐺𝑊𝑊𝑊𝑊𝐸𝐸𝑒𝑒𝑙𝑙𝑙𝑙 3, 324 therms WWTP Utility Data,
calculated to include
upstream and downstream
emissions
3 Natural gas combustion
emission factor
𝐸𝐸𝐸𝐸𝑒𝑒𝑓𝑓𝑒𝑒𝑜𝑜𝑐𝑐 0. 0053115 MT CO2e/therm Alvarez, Ramón et al. (2018) & Environmental Defense
Fund4
Methane leak emission
factor
𝐸𝐸𝐸𝐸𝑒𝑒𝑓𝑓𝑒𝑒𝑒𝑒𝑁𝑁𝑙𝑙 0. 05307 MT CO2e/therm Alvarez, Ramón et al. (2018) & Environmental Defense
Fund
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; MG = million gallons; AF = acre-feet; kWh = kilowatt hour 1 PG&E purchased therms by WWTP provided to City via email in May 2024. The original 3,785,505 therms were then scaled to reflect Campbell’s share of this overall total (3.14%).
2 This value subtracts out 0.5% end-use to reflect the percentage of natural gas actually combusted in end-use. See natural gas community inventory emissions factor for full source description. 3 This value calculates end-use leakage (0.5%) and adds it to pipeline leakage (2.3%) in order to calculate total methane leaked throughout therms consumed by the WWTP.
4 Alvarez, Ramón et al. (2018). Assessment of methane emissions from the U.S. oil and gas supply chain. Science. 361. https://www.science.org/doi/abs/10.1126/science.aar7204.; Environmental Defense Fund USER GUIDE FOR NATURAL GAS LEAKAGE RATE MODELING TOOL. Available at: https://www.edf.org/sites/default/files/US-Natural-Gas-Leakage-Model-User-Guide.pdf Table 28 summarizes wastewater sector activity data, emissions factors, and GHG emissions per WWTP.

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30 Table 28 Community Wastewater GHG Emissions Calculations Emissions Source
Protocol
Equation Activity Data & Unit Emissions Factor1
GHG Emissions
[MT CO2e/year]
San Jose- Santa Clara Regional Wastewater Facility
Stationary
Combustion/
Anaerobic Digestion
CH4 and N2O
Emissions
WW.1.B;
WW.2.B
20,187,204 std ft3/yr 0.0000002 MT CO2e/std
ft3

3.09 Nit/Denit Process
N2O
WW.7 43,930 service
persons

0.0018550 MT CO
2e/
service pop

81.49 Effluent Discharge WW.12 109 kg N/day 0.3799057 MT CO2e/kg N/day

41.52 Electricity Use WW.15 480,749 kWh 0.0000263 MT CO2e/kWh 12.64 Electricity T&D Loss WW.15 24,518 kWh 0.0000263 MT CO2e/kWh 0.64 NG Use WW.15-NG 118,127 therms 0.0053115 MT CO2e/
therm
627.42
NG Leakage WW.15-NG 3,324 therms 0.0530670 MT CO2e/
therm
176.40
Total 943.22
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; kg = kilograms; kWh = kilowatt hour 2022 Community GHG Emissions Inventory Results
The inventory provides the current GHG emissions estimates that follow the Community Protocol and current best practices for GHG accounting. The results of the GHG inventory are summarized in Figure 1 and Figure 2, and shown in detail in Table 29.

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Greenhouse Gas Inventory Analysis Report 31
Figure 1 Community Inventory GHG Emissions by Sector
On-road
Transportation
59%
Building Natural
Gas
26%
Oﬀ-road
Equipment
6%
Building
Electricity
5%
Solid Waste
4%
Wastewater
0%
Water
<0.1%

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32 Figure 2 Community Inventory GHG Emissions by Subsector

113,210
15,647
1,599 223 0 0
30,723
14,869
8,638
4,181 5,126 5,012 2,672 4,193 3,085 2,638 214 157 146
9,388
407 627 176 81 42 13 3 1 98
0 MT
20,000 MT
40,000 MT
60,000 MT
80,000 MT
100,000 MT
120,000 MT
On-road Passenger T otal VMT
On-road Commercial T otal VMT
On-road Bus T otal VMT
On-road Passenger EVMT
On-road Bus EVMT
On-road Commerci al EVMT
Residential Natural Gas
Nonresidential Natural Gas
Residential Natural Gas Leaks
Nonresidential Natural Gas Leaks
Oﬀ Road -Di esel
Oﬀ Road -Gasoline
Oﬀ Road -Natural Gas
Direct Access
N onre side ntial Ele ctricity
Re side ntial Ele ctricity
Direct access T &D
N onre side ntial Ele ctricity T&D
Re side ntial Ele ctricity T&D
Landﬁll Methane
Process Emissions
NG Use
NG Leakage
Process N 2O Emissions
Eﬄuent Discharge Fugitive N 2O
Electricity Use
Stationary Combustion
Electricity Use T &D
Imported/Purchased
On-road T ransportation Building Natural Gas Oﬀ-road Equipment Building Ele ctricity Solid Waste Wastewater Water

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Table 29 2022 Community GHG Emissions Inventory
GHG Emissions
Sector
GHG Emissions
Subsector Activity Data Emission Factor
GHG
Emissions
(MT CO2e)
Energy Residential Electricity 81,938,362 kWh 0.0000322 MT CO2e/kWh 2,638 Residential Electricity
T&D
4,532,391 kWh 0.0000322 MT CO2e/kWh 146
Commercial
Electricity
95,071,139 kWh 0.0000324 MT CO2e/kWh 3,085
Commercial
Electricity T&D
4,848,750 kWh 0.0000324 MT CO2e/kWh 157
Direct Access 18,509,670 kWh 0.0002265 MT CO2e/kWh 4,193 Direct access T&D 943,993 kWh 0.0002265 MT CO2e/kWh 214 Residential Natural
Gas
5,784,332 therms 0.005311 MT CO
2e/therm 30,723
Residential Natural
Gas Leaks
162,775 therms 0.053067 MT CO
2e/therm 8,638
Commercial Natural
Gas
2,799,456 therms 0.005311 MT CO2e/therm 14,869
Commercial Natural
Gas Leaks
78,779 therms 0.053067 MT CO2e/therm 4,181
Transportation On-road Passenger
Total VMT
320,297,745 VMT 0.000353 MT CO2e/mile 113,210
On-road Commercial
Total VMT
10,981,011 VMT 0.001425 MT CO2e/mile 15,647
On-road Bus Total
VMT
1,096,229 VMT 0.001459 MT CO2e/mile 1,599
On-road Passenger
EVMT
6,932,044 kWh 0.000032 MT CO2e/kWh 223
On-road Commercial
EVMT
0 kWh 0.000032 MT CO2e/kWh 0.0
On-road Bus EVMT 2,389 kWh 0.000032 MT CO2e/kWh 0.1
Off Road-Diesel 489,670 Gallons 0.010469 MT CO2e/Gallon 5,126 Off Road-Gasoline 544,699 Gallons 0.009202 MT CO2e/Gallon 5,012 Off Road-Natural Gas 455,785 Gallons 0.005862 MT CO2e/Gallon 2,672 Solid Waste Landfill Methane 24,835 tons 0.378000 MT CO2e/ton 9,388 Process Emissions 24,835 tons 0.016400 MT CO2e/ton 407
Water Imported/Purchased 1,539,283 kWh 0.000064 MT CO2e/kWh 98

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34 GHG Emissions
Sector
GHG Emissions
Subsector Activity Data Emission Factor
GHG
Emissions
(MT CO2e)
Wastewater Stationary
Combustion
20,187,204 std ft3/yr 0.000000 MT CO2e/std ft3 3
Process N2O
Emissions
43,930 service
persons

0.001855 MT CO2e/service
pop
81 Effluent Discharge
Fugitive N
2O
109 kg N/day 0.379906 MT CO2e/kg
N/day
42 Electricity Use 480,749 kWh 0.000026 MT CO2e/kWh 13
Electricity Use T&D 24,518 kWh 0.000026 MT CO2e/kWh 1
NG Use 118,127 therms 0.005311 MT CO2e/therm 627
NG Leakage 3,324 therms 0.053067 MT CO2e/therm 176
Total 223,170
Notes: VMT = vehicle miles traveled; EVMT = electric vehicle miles traveled; kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent; gal = gallons

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Greenhouse Gas Inventory Analysis Report 35
3 Municipal GHG Emissions Inventory

3.1 Methodology
The City’s 2022 Municipal GHG Inventory was completed using the Local Government Operations Protocol18 (LGOP) developed by Local Governments for Sustainability (ICLEI), California Air Resources Board (CARB), California Climate Action Registry, and The Climate Registry (TCR). The LGOP methodology includes the calculation of GHG emissions that can be attributed directly to City operations in the given inventory year. The municipal inventory allows the City to track its GHG emissions resulting from its facilities, vehicles, and any equipment over which it can exert control with policies.

This means that the municipal inventory is a subset of the community inventory and can be used by the City for guidance to reduce emissions directly under the City’s control (e.g., electrifying municipal fleets and buildings, conducting internal outreach to improve landfill diversion).

The results of GHG emission calculations are presented by emissions scope, relating to the degree of control the City has over emissions sources. Emissions sources are categorized as direct (i.e., Scope 1) or indirect (i.e., Scope 2 or Scope 3), in accordance with the World Resources Institute and the World Business Council for Sustainable Development’s Greenhouse Gas Protocol Corporate Standard, which are summarized below:
 Scope 1: Direct GHG emissions from sources within a local government’s operations that it owns and/or controls. This includes stationary combustion to produce electricity, steam, heat, and power equipment; mobile combustion of fuels; process emissions from physical or chemical processing; fugitive emissions that result from production, processing, transmission, storage, and use of fuels; and other sources.
 Scope 2: Indirect GHG emissions associated with the consumption of electricity, steam, heating, or cooling that are purchased from a utility provider that also provides energy to other jurisdictions and/or is located outside the boundaries of the city.  Scope 3: All other indirect GHG emissions not covered in Scope 2, such as emissions resulting from the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the City (e.g., employee commuting and business travel, outsourced activities, waste disposal, etc.).

Scope
Similar to the community inventory, the GHG emissions sources and sectors for the municipal operations inventory are categorized into various sectors and subsectors to match the GHG emissions reporting of the community GHG emissions inventory, with the granularity required by the LGOP.

The primary sectors of GHG emissions sources include:

18 ICLEI. May 2010. Local Government Operations Protocol for the quantification and reporting of greenhouse gas emissions inventories.

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36  Electricity
 Natural Gas
 Transportation
 Water and Wastewater
 Solid Waste
Further granularity can be achieved by also reporting GHG emissions sources by the following subsectors when possible:
 Buildings and other facilities*
 Streetlights and traffic signals*
 Water delivery facilities*
 Port Facilities
 Airport Facilities
 Vehicle fleet*
 Transit fleet
 Power Generation Facilities
 Solid Waste Facilities
 Wastewater facilities
All categories coded with an “*” were included in the municipal inventory as they are relevant to the City of Campbell. All other categories have not been included as they are not applicable to municipal services found within jurisdictional boundaries.

The following LGOP recommended sectors have also been included in the City’s 2022 Municipal GHG Inventory:
 Employee commute
The City’s 2022 Municipal GHG Inventory includes an assessment of the City’s operational GHG emissions according to the above subsectors and categorized by scope.

Emissions Boundary
The 2022 Municipal GHG Inventory includes all emissions occurring within the City of Campbell’s direct jurisdictional authority (i.e., sources of emissions resulting from facilities that the City owns and/or operates). The City of Campbell operates and maintains multiple buildings and facilities, such as City Hall, the Campbell Community Center, and Corporate Yards. As the City does not own any utilities, emissions from purchased electricity, natural gas, and water/wastewater are treated as Scope 2 emissions.

3.2 2022 Municipal GHG Emissions Inventory

3.2.1 Buildings and Other Facilities
Buildings and facilities generate emissions that relate to the stationary combustion of natural gas (Scope 1) and the use of electricity (Scope 2) in City facilities.

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Natural gas – which is used for heating and cooling buildings and facilities – is provided by PG&E.

The same equations used to calculate emissions from both combusted and leaked natural gas (Equation 2-3 and Equation 2-4) are the same as described above in the Community GHG Inventory.

The GHG emission calculation details associated with City facilities’ natural gas usage and leakage are provided in Table 30.

Table 30 Municipal Buildings and Facilities Sector Natural Gas GHG Emissions Calculations
GHG Emissions Source
Adjusted Activity Data
[therms]
Emissions Factor
[MT CO2e/therm]
Emissions
[MT CO2e] Scope
Natural Gas Consumption 107,817 0.005311 573 Scope 1
Natural Gas Methane Leaks 3,034 0.053067 161 Scope 1
Total 734 Scope 1
Notes: MT CO2e = Metric tons of carbon dioxide equivalent The City purchases its electricity from the same providers described in the Community Inventory (PG&E and SVCE). The 2022 Municipal GHG Inventory considers the electricity consumed to operate City-owned buildings and facilities as a subset of the 2022 Community GHG Inventory and is thereby included as Scope 2 emissions. Additionally, T&D electricity losses are included in the City’s 2022 Municipal GHG Inventory to align with the 2022 Community GHG Inventory.

Emissions factors for PG&E, SVCE GreenStart, and SVCE GreenPrime were provided by PG&E and SVCE. SVCE additionally provided a 2022 municipal report with addresses and coding for service type, as well as NAICS codes further describing end-uses for each City account. According to SVCE, all City buildings and facilities used SVCE GreenStart and SVCE GreenPrime, while streetlights and traffic signals used PG&E, SVCE GreenPrime, and SVCE GreenStart. Electricity T&D losses were calculated based on a 5.1 percent loss rate as specified by eGRID. 19 The GHG emission calculation
details associated with buildings and other facilities’ electricity usage are provided in Table 31.

19 Environmental Protection Agency (EPA). 2023. eGRID Data Explorer 2022 Western Energy Grid. Available at:
https://www.epa.gov/egrid/data-explorer

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38 Table 31 Municipal Buildings and Facilities Sector Electricity GHG Emission Calculations GHG Emissions Source
Utility
Provider
Activity Data
[kWh]
Emissions Factor
[MT CO2e/kWh]1
Emissions
[MT CO2e] Scope
Electricity Consumption SVCE
GreenPrime &
GreenStart
2,161,896 0.000021 46 Scope 2
Electricity Consumption T&D SVCE
GreenPrime &
GreenStart
110,257 0.000021 2 Scope 2
Total 49 Scope 2
Notes: kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent 1 Emissions factor is a weighted average of SVCE GreenPrime and GreenStart rates. Note that over 99% of energy use is allocated to SVCE GreenPrime.

3.2.2 Streetlights and Traffic Signals
The City’s streetlights and traffic signals also generate Scope 2 emissions and T&D losses. Activity data and emissions factors were included in the SVCE municipal report provided to the City.20 Electricity T&D loss was calculated based on a 5.1 percent loss rate as specified by eGRID.21 The GHG emission calculation details associated with streetlights and traffic signals are provided in Table 32.

Table 32 Municipal Streetlights and Traffic Signals Sector Electricity GHG Emission Calculations
GHG Emissions Source
Utility
Provider
Activity Data
[kWh]
Emissions Factor
[MT CO2e/kWh]1
Emissions
[MT CO2e] Scope
Streetlights & Traffic Signals PG&E; SVCE
GreenPrime &
GreenStart
630,171 0.000022 14 Scope 2
Streetlights & Traffic Signals
T&D
PG&E; SVCE
GreenPrime
and GreenStart
32,139 0.000022 0.7 Scope 2
Total 14 Scope 2
Notes: kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent 1 Note that emission factor is a weighted average that reflects kwh consumption split across electricity providers.

3.2.3 Water Delivery
Water consumption typically generates Scope 3 GHG emissions from the electricity used to deliver water to City-owned facilities, as well as the energy used to treat and convey the water prior to delivery. All water is purchased from the San Jose Water Company (SJWC), consistent with the Community GHG Inventory. Water delivery by SJWC is considered Scope 3 as the City does not control the electricity used to extract, convey, treat, and transport water. The municipal inventory uses the same energy intensity [kWh/MG] as the Community GHG Inventory, along with the SVCE

20 Municipal report is a separate spreadsheet from SVCE, while emissions factors use the same values used by the Community Inventory provided by SVCE and PG&E
21 Environmental Protection Agency (EPA). 2023. eGRID Data Explorer 2021 Western Energy Grid. Available at:
https://www.epa.gov/egrid/data-explorer

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GreenStart and San Jose Clean Energy weighted emissions factor, as described in the Community Inventory. Specific 2022 MG usage was provided by San Jose Water and validated using data provided by the Campbell Finance Department (water bills paid in Fiscal Years 2022 and 2023).

The GHG emission calculations details are provided in Table 33.

Table 33 Municipal Water Consumption GHG Emissions Calculations Water District
Activity
Data
[MG]
Energy
Intensity Factor
[kWh/MG]
Electricity
Usage
[kWh]
Emission
Factor [MT
CO2e/kWh]
GHG
Emissions
[MT CO2e]
Emission
Source
Scope
Imported/Purchased Water 42 1,031 43,302 0.000064 3 Scope 3 Total 3 Scope 3
Notes: kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent; MG= million gallons Values may not add due to rounding

3.2.4 Vehicle Fleet
Vehicle fleet emissions include Scope 1 sources that relate to the mobile combustion of fossil fuels in the City’s fleet vehicles. Information was not available for Scope 2 emissions from the charging of EVs and is not included in the total. Fleet vehicles include light- and medium-duty vehicles and trucks. The data provided by the Public Works Department represents fuel usage of diesel and gasoline in 2022, as well as an estimate of percentage of vehicles which were on-road vs. off-road.

Approximately 85 percent of vehicles were estimated as on-road and 15 percent as off-road.

Emission factors for diesel, gasoline, and compressed natural gas were obtained from the EPA Emission Factors for Greenhouse Gas Inventories report.22 The GHG emission calculation details associated with vehicle fleet sources are provided in Table 34.

As the City does own a transit fleet (e.g., buses, light rail), there were no emissions calculated from this sector. Employee commutes account for emissions generated by City employees’ trips to and from work and are treated as separate from the use of personal vehicles for work, as discussed in the section below.

22 Environmental Protection Agency (EPA). 2022. GHG Emission Factors Hub. Available at: https://www.epa.gov/climateleadership/ghg- emission-factors-hub

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40 Table 34 Municipal Vehicle Fleet Sector GHG Emission Calculations GHG Emission Source Activity Data Emissions Factor
Emissions
[MT CO2e] Scope
On-Road Diesel1 2,550 Gallons 0.010254 MT CO2e/gal 26 Scope 1 On-Road Gasoline1 43,333 Gallons 0.008808 MT CO2e/gal 382 Scope 1 Off-Road Diesel2 450 Gallons 0.010467 MT CO2e/gal 5 Scope 1 Off-Road Gasoline2 7,647 Gallons 0.009207 MT CO2e/gal 70 Scope 1 Total 483 Scope 1
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; gal = gallons; kWh = kilowatt hour; Values may not add due to rounding 1 On-road diesel and gasoline were calculated by taking EPA estimates of MPG and emissions factors/gas and diesel and apply the average of model years to the mpg calculated x gallons of fuel provided. 2 Off-Road diesel emissions factors were taken by applying the kg CO2 factors provided by the EPA for Diesel and Gasoline. The values from EPA average emissions factors by fuel type and off-road equipment type were then taken for both gasoline and diesel for ‘light commercial’ categories and applied.

3.2.5 Solid Waste from City Facilities
Emissions calculations from solid waste from City facilities use the same methodologies and emissions factors as detailed above in the Community Inventory in Equation 2-8 and Equation 2-9.

The GHG emissions calculations for municipal solid waste fugitive emissions and process emissions are shown in Table 35.

Table 35 Municipal Solid Waste GHG Emission Calculations Sector
Activity Data
[wet short ton]
Emission Factor [MT
CO2e/wet short ton]
GHG Emissions
[MT CO2e]
Emission
Source Scope
Municipal landfill Decomposition 694 0.3780 262 Scope 3 Municipal landfill Process 694 0.0164 11 Scope 3
Total 274 Scope 3

3.2.6 Wastewater from City Facilities
Wastewater management and processing at SCRWF are considered Scope 3 emissions, as they are located outside of Campbell’s boundaries and are not owned or operated by the City. Although West Valley Sanitation District (WVSD) does have offices in Campbell and could be considered Scope 1 emissions, wastewater is conveyed to SCRWF with gravity and, thus, does not have any associated emissions.

GHG emissions for wastewater treatment were calculated using the same Community Protocol methodology described above in the Community Inventory in Wastewater. Like the Community Inventory, total wastewater emissions from SCRWF were attributed to City operations.23

23 Total 2022 FTE employees for 2022 were used to scale emissions to reflect the share of wastewater emissions borne by municipal staff:
219. This is equal to 0.5% of the total Campbell population used to calculate community wastewater emissions (43,930).

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Table 36 Municipal Wastewater GHG Emissions
GHG Emission Source
Adjusted
Activity Data1 Emissions Factor
Emissions
[MT CO2e] Scope
Stationary Combustion 100,638 std ft3/yr 0.0000002 MT CO2e/std ft3 0.01 Scope 3 Process N2O Emissions 219 service
persons

0.0018550 MT CO2e/
service pop

0.40 Scope 3
Effluent Discharge
Fugitive N
2O
1 kg N/day 0.3799057 MT CO2e/kg
N/day

0.20 Scope 3
Electricity Use 2,397 kWh 0.0000263 MT CO2e/kWh 0.06 Scope 3 Electricity Use T&D 122 kWh 0.0000263 MT CO2e/kWh <0.00 Scope 3 NG Use 589 therms 0.0053115 MT CO2e/ therm 3.12 Scope 3 NG Leakage 17 therms 0.0530670 MT CO2e/ therm 0.87 Scope 3 Total 4.7 Scope 3
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; AF = acre-feet; kg = kilogram; kWh = kilowatt hour; Values may not add due to rounding
1 Adjusted activity data reflects 0.5% of the total activity data to account for the contribution of FTE City employes to the community total.

3.2.7 Employee Commute
Emissions from employee commutes include Scope 3 GHG emissions sources from the mobile combustion of fossil fuels generated by the City of Campell’s employee vehicles as employees commute to and from work. The City provided underpinning data in the form of employee type, schedule (Flexible 9/8024 and telework) and estimated one-way trip to commute into the City of Campbell.25 Average daily commute was scaled to working days in a year (including 9/80 employees). The community emission factor for 2022 passenger vehicles was then applied to annual milage to calculate MT CO2e/Year.

The GHG emissions associated with the employee commute sector are provided in Table 37.

24 A 9/80 work schedule is a two-workweek schedule of eight 9-hour days, one 8-hour day, and one day off. 25 One-way trip lengths were calculated by City staff from the middle of the provided zip code on Google Maps. Zip codes 95228, 95321, and 95678 were excluded as outliers due to a calculated daily trip of over 100 miles.

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42 Table 37 Municipal Employee Commute GHG Emissions
GHG
Emission
Source
City
Employees
– FTW
Average
Daily Round
Trip Distance
[mi/vehicle/
day]
Workdays
[commuting
days]
per Year1
Annual
Mileage
Emissions
Factor [MT
CO2e/mi]2
Emissions
[MT CO2e]
Emission
Source
Scope
Single
Occupancy –
9/80
Employees

30 107 171 550,124 0.00035 194 Scope 3
Single
Occupancy –
Non-9/80
Employees
189 107 234 4,742,648 0.00035 1,676 Scope 3
Total 1,871 Scope 3
1 Assumed that 9/80 employees worked 171 days (commuted); non-9/80 employees worked 234 days (commuted). Note that the City does not have a telework policy, and an estimated 30-35 employees work a 9/80 schedule. 2 Emissions factor uses on-road emissions factor used in Community inventory.

3.3 2022 Municipal GHG Emissions Inventory Results
The inventory provides the City with current GHG emissions estimates that follow the Community Protocol and current best practices for GHG accounting at the municipal level. The results of the GHG inventory are summarized in Figure 3 and shown in detail in Table 38.

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Figure 3 Municipal 2022 GHG Inventory

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44 Figure 4 2022 Municipal GHG Inventory Subsector Breakdown

0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Employee Commute
On-road Vehicle Fleet Gasoline
Off-road Vehicle Fleet Gasoline
On-road Vehicle Fleet Diesel
Off-road Vehicle Fleet Diesel
On-road Vehicle Fleet Natural Gas
Transit Cars (Dial-A-Ride)
Transit Buses
Off-road Vehicle Fleet Natural Gas
Buildings & Facilities
Buildings & Facilities Leaks
Landfill Methane
Process Emissions
Buildings & Facilities
Streetlights & Traffic Signals
Buildings & Facilities T&D
Streetlights & Traffic Signals T&D
Transportation Infrastructure Natural GasSolid Waste Infrastructure Electricity

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Table 38 2022 Municipal GHG Inventory
GHG
Emissions
Sector GHG Emissions Subsector Activity Data Emission Factor GHG
Emissions
(MT CO2e)
Energy Electricity – Buildings &
Facilities
2,161,896 kWh 0.000021 MT CO2e/kWh 46
Electricity – Buildings &
Facilities T&D
110,257 kWh 0.000021 MT CO2e/kWh 2
Electricity – Streetlights &
Traffic Signals
630,171 kWh 0.000022 MT CO2e/kWh 14
Electricity – Streetlights &
Traffic Signals T&D
32,139 kWh 0.000022 MT CO2e/kWh 0.7
Natural Gas – Buildings &
Facilities
107,817 therms 0.005311 MT CO2e/
therm
573
Natural Gas – Buildings &
Facilities Leaks
3,034 therms 0.053067 MT CO2e/
therm
161
Transportation On-road Vehicle Fleet Diesel 2,550 Gallons 0.010254 MT CO2e/gal 26 On-road Vehicle Fleet
Gasoline
43,333 Gallons 0.008808 MT CO2e/gal 382
Off-road Vehicle Fleet Diesel 450 Gallons 0.010467 MT CO2e/gal 5 Off-road Vehicle Fleet
Gasoline
7,647 Gallons 0.009207 MT CO2e/gal 70
Solid Waste Landfill Methane 694 tons 0.378000 MT CH4/ton 262 Process Emissions 694 tons 0.016400 MT CO2e/ton 11
Water Imported/Purchased 43,302 kWh 0.000064 MT CO2e/kWh 3 Wastewater Stationary Combustion 100,638 std ft3/
yr

0.000000 MT CO2e/std ft3 0.0
Process N2O Emissions 219 service
persons

0.001855 MT CO2e/
service pop

0.4 Effluent Discharge Fugitive
N
2O
1 kg N/
day

0.379906 MT CO2e/kg
N/day

0.2 Electricity Use 2,397 kWh 0.000026 MT CO2e/kWh 0.1
Electricity Use T&D 122 kWh 0.000026 MT CO2e/kWh 0.0
Natural Gas Use 589 therms 0.005311 MT CO2e/
therm

3.1 Natural Gas Leakage 17 therms 0.053067 MT CO2e/
therm

0.9 Total 3,431
Notes: VMT = vehicle miles traveled; EVMT = electric vehicle miles traveled; kWh = kilowatt hour; MT CO2e = Metric tons of carbon dioxide equivalent; gal = gallons

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46 4 GHG Emissions Forecast
A GHG emissions inventory sets a reference point for a single year; however, annual GHG emissions change over time due to factors such as population and job growth, as well as new technologies and policies. A GHG emissions forecast estimates future GHG emission changes by accounting for projected community growth and changes. Calculating the difference between the GHG emissions forecast and GHG emissions reduction targets determines the gap that needs to be closed through the implementation of local GHG reduction policies. This section includes an estimate of the future emissions for Campbell in the years 2030, 2035, 2040 and 2045 in a business-as-usual scenario (BAU) forecast and a legislative adjusted scenario (adjusted) forecast, which are defined as follows:
 Business-as-Usual Forecast. Provides a forecast of how future GHG emissions would change if consumption trends continued as they did in 2022 and projected changes in population, housing, employment, and transportation activity over time consistent with planned projects within Campbell boundaries. The BAU does not include any GHG reductions associated with State regulations.
 Legislative Adjusted Forecast. Provides a forecast of how currently adopted state legislation would reduce GHG emissions from the business-as-usual scenario. The legislative adjusted scenario represents the State’s contribution to reducing local GHG emissions to meet state goals.

Because the adjusted forecast incorporates the impact of State regulations that provide GHG emission reduction potential, the legislative adjusted scenario offers a more accurate picture of future GHG emission growth and the responsibility of Campbell for GHG reductions through local and regional actions.

4.1 Business-as-Usual Forecast
Future projections for Campbell were estimated using the City of Campbell 6th Cycle 2023-2031 Housing Element,26 along with Metropolitan Transportation Commission’s (MTC) and Association of Bay Area Governments’ (ABAG) jointly-adopted Plan Bay Area 2050, which included growth projections for jobs, housing, and population by County.27 These projections were applied to the baseline emissions estimations in the 2022 Community GHG Inventory to estimate emissions through 2045.

A summary of the resulting demographics and projection metrics for each forecast year are provided in Table 39.

26 https://www.campbellca.gov/DocumentCenter/View/20007/4th-HCD-Submittal-Draft-of-the-6th-Cycle-Housing-Element---Redlines 27 Plan Bay Area 2050:
https://planbayarea.org/sites/default/files/FinalBlueprintRelease_December2020_GrowthPattern_Jan2021Update.pdf

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Table 39 BAU Forecast Demographic and Projection Metrics by Forecast Year Metric Data Source 2022 2030 2035 2040 2045
Population Multiple1 43,930 58,539 64,387 70,819 77,894 Households Multiple2 17,278 23,617 26,393 29,495 32,962 Employment Multiple3 29,426 31,903 33,556 35,295 37,123 Population Serviced Calculated4 73,356 90,442 97,943 106,114 115,017 Off-road gasoline
usage (gallons)
CARB OFFROAD2021 544,699 604,904 637,059 670,334 681,505 Off-road diesel
usage (gallons)
CARB OFFROAD2021 489,670 533,636 567,671 603,125 641,792 Off-road natural gas
usage (gallons)
CARB OFFROAD2021 455,785 507,933 542,198 580,127 580,131 1 Population forecast estimated based on 2020 base data referenced in the Campbell 6th Cycle Housing Element, multiplied by household projections and people per household calculated based on AMBAG/Plan Bay Area growth projections. 2 Households are estimated based on 2019 base data from Housing Element and added in RHNA allocation since 2031, using Plan Bay Area Compound growth rate.
3 Employment forecast estimated based on the 2018 Housing Element base data multiplied by calculated compound annual growth rate calculated using AMBAG/Plan Bay Area projections.
4 Service population is equal to jobs + population.

A description of the demographic metrics used to project activity data and associated growth factors for each forecasted GHG emission source in the 2022 Community GHG Inventory is provided in Table 40.

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48 Table 40 GHG Emission Sources and Growth Factors for BAU Scenario Forecast GHG Emissions Source
Demographic
Projection Metric Growth Factor Value
Energy
Residential Electricity Households Electricity Consumption (kWh)/Household 4,742.49 Commercial Electricity Employment Electricity Consumption (kWh)/Job 3,230.81 Direct Access Population Electricity Consumption (kWh)/Job 629.02 Residential Natural Gas Households Natural Gas Consumption (therms)/Household 334.79 Residential Natural Gas
Leaks
Households Natural Gas Consumption (therms)/Household 9.42 Commercial Natural Gas Employment Natural Gas Consumption (therms)/Job 95.13 Commercial Natural Gas
Leaks
Employment Natural Gas Consumption (therms)/Job 2.68
Transportation
On-Road Passenger Total
VMT
Households Annual VMT attributed to on-road vehicles using EMFAC2021 and Replica1
18,538.42
On-Road Commercial Total
VMT
Employment Annual VMT attributed to on-road vehicles using EMFAC2021 and Replica1
373.17
On-Road Bus Total VMT Service Population Annual VMT attributed to on-road vehicles using EMFAC2021 and Replica1

14.94 Off-Road Emissions2 N/A Modeled by OFFROAD2021 and applied to Campbell populations

Solid Waste
Solid Waste Disposal Service Population Solid Waste Emissions (MT CO2e)/Service Person 0.13 Water
Water Consumption Service Population Water Consumption-Associated Electricity Consumption (kWh)/Service Population

20.98 Wastewater
Wastewater Treatment Service Population Wastewater Emissions (MT CO2e)/Service Person 0.01 Wastewater Treatment –
Electricity
Service Population Wastewater Emissions (kWh)/Service Person 6.89 Notes: MT CO2e = Metric tons of carbon dioxide equivalent; kWh = kilowatt-hour; VMT = vehicle miles traveled; N/A = Not Applicable; Service Population = the combined total number of employees and residents in Campbell; MG = million gallons 1 Annual VMT for on-road vehicles are calculated from average weekday VMT data provided by Replica for Campbell and interpolated for the forecast years. Average weekday data is converted to annual VMT using CARB’s VMT annualization factor (i.e., 347 days per year). Annual VMT data is then appropriated to each fuel (i.e., gasoline, diesel, and natural gas) using on EMFAC2021 data analysis. 2 Off-road fuel usage is calculated by applying the attribution metrics from the 2022 GHG inventory to the OFFROAD2021 model outputs for the forecast years to attribute the county-level outputs to Campbell and thus does not have its own growth indicator listed here.

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Using the above demographic and projection metrics in Table 39, multiplied by the growth factors in Table 40 and the 2022 Campbell Community GHG inventory emission factors, the BAU forecast can be calculated. In the BAU forecast, GHG emissions are expected to increase through 2045 due to anticipated regional growth from both population and jobs. A summary of the BAU forecast results by GHG emission sector is provided in Table 41 and summarized in Figure 5.

Table 41 BAU Forecast Results Summary by Emission Sector GHG Emissions Source 2022 2030 2035 2040 2045
Energy 68,843 86,554 94,825 103,970 114,086
Residential Electricity +
T&D
2,784 3,805 4,252 4,752 5,311
Commercial Electricity +
T&D
3,242 3,515 3,697 3,888 4,090
Direct Access + T&D 4,407 4,778 5,025 5,286 5,560
Residential Natural Gas 30,723 41,996 46,932 52,449 58,614 Residential Natural Gas
Leaks
8,638 11,807 13,195 14,746 16,480
Commercial Natural Gas 14,869 16,121 16,956 17,834 18,758 Commercial Natural Gas
Leaks
4,181 4,532 4,767 5,014 5,274
Transportation 143,490 188,119 208,240 230,610 255,047
On-road Passenger
Vehicles
113,433 155,052 173,278 193,646 216,408
On-road Commercial
Vehicles
15,647 16,964 17,843 18,767 19,739
On-road Buses 1,599 1,972 2,136 2,314 2,508
Off-road Equipment 12,811 14,131 14,984 15,883 16,391
Water and Wastewater 994 1,226 1,327 1,438 1,559
Wastewater Process and
Fugitive Emissions &
Energy Use
944 1,164 1,260 1,365 1,480
Water Conveyance Energy 98 121 131 142 154
Solid Waste 9,795 12,076 13,078 14,169 15,358
Solid Waste Disposal 9,795 12,076 13,078 14,169 15,358
Total GHG Emissions 223,170 288,034 317,535 350,257 386,125 Notes: All values are presented in metric tons of carbon dioxide equivalent (MT CO2e)

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50 Figure 5 BAU Forecast Results Summary by Emission Sector (MT CO2e)

4.2 Legislative Adjusted Forecast
Several State regulations have been enacted that would reduce Campell’s GHG emissions below the BAU forecasted levels in 2030, 2035, 2040 and 2045. The impact of these regulations was quantified and incorporated into the adjusted forecast to provide a more realistic depiction of future emissions growth and the GHG emission reduction responsibility of local governments. The State legislation included in the adjusted forecast reduces GHG emissions associated with transportation, building energy efficiency, and renewable electricity. A brief description of each regulation and the methodology used to calculate associated reductions is provided in the following, as well as an explanation of any legislation excluded from the analysis.

4.2.1 Legislative Reduction Programs
Additional legislative programs are expected to reduce GHG emissions in specific sectors throughout California, as identified in the 2017 and 2022 Scoping Plans. Many of these programs were incorporated into the forecast analysis and are summarized in the subsections below.

Transportation Legislation
Advanced Clean Cars Programs
Prior to 2012, mobile emissions regulations were implemented on a case-by-case basis for GHG and criteria pollutant emissions separately. In January 2012, CARB approved a new emissions-control program (the Advanced Clean Cars program) combining the control of smog, soot-causing pollutants, and GHG emissions into a single coordinated package of requirements for passenger cars and light trucks model years 2017 through 2025. The Advanced Clean Cars program coordinated the

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goals of the Low Emissions Vehicles, Zero Emissions Vehicles, and Clean Fuels Outlet programs, and was more stringent than the federal Corporate Average Fuel Economy (CAFE) standards. The new standards will reduce California’s GHG emissions by 34 percent in 2025, which is modeled under the CARB Emission Factor (EMFAC) Model and included in the GHG forecast as shown in Table 42.28 Advanced Clean Cars II was approved by CARB in August 2022 and expands the program’s roadmap so that by 2035 all new cars and passenger trucks will be zero-emission vehicles (ZEV). This regulation effectively binds the State to EO N-79-20. The executive order was passed by the governor in 2020 and requires all new cars and passenger trucks sold in California be ZEV by 2035.

While these legislations will lead to an expedited timeline for ZEV adoption in California, modeling data is not yet available in CARB’s EMFAC Model. Emissions reductions attributable to the Advanced Clean Cars II program were excluded from the GHG forecast.

Advanced Clean Trucks was approved by CARB in June 2020 and sets a zero-emission vehicle (ZEV) percent-of-sales requirement on medium- and heavy-duty vehicle manufacturers to promote increased truck ZEV sales from 2024 to 2035. The standard is intended to reduce NO x pollution and
GHG emissions – which are disproportionately high in medium- and heavy-duty vehicle classes compared to passenger vehicles – as well as promote first-wave ZEV truck technology penetration in the market.29 EMFAC models the effect of the Advanced Clean Trucks regulation on ZEV truck penetration and associated GHG emissions and is included in the forecast.

Table 42 Emission Factors Over Time by Vehicle Type (MT CO2e/VMT) Metric 2022 2030 2035 2040 2045
Passenger 0.000353 0.000293 0.000274 0.000265 0.000260
Commercial 0.001425 0.001175 0.000988 0.000861 0.000793 Buses 0.001459 0.001286 0.000940 0.000812 0.000709
Notes: MT CO2e = Metric tons of carbon dioxide equivalent; VMT= vehicle miles traveled Assembly Bill 1493
Signed into law in 2002, AB 1493 (Pavley Standards) required vehicle manufacturers to reduce GHG emissions from new passenger vehicles and light trucks from 2009 through 2016. Regulations were adopted by CARB in 2004 and took effect in 2009 when the United States Environmental Protection Agency (USEPA) issued a waiver confirming California’s right to implement the bill. This standard required automakers to reduce GHG emissions from new California passenger vehicles by about 30 percent by 2016, while simultaneously improving fuel efficiency and reducing motorists’ costs. 30 The
impacts of the Pavley Standards on ZEV market penetration were incorporated into the EMFAC model starting in 2014 and are included in the forecast assessment.

Innovative Clean Transit
Public transit GHG emissions will be reduced in the future through the Innovative Clean Transit (ICT) regulation, which was adopted in December 2018. It requires all public transit agencies to gradually

28 California Air and Resource Board (CARB). 2019. Advanced Clean Cars Summary. Available at:
https://ww2.arb.ca.gov/sites/default/files/2019-12/acc%20summary-final_ac.pdf 29 California Air and Resource Board (CARB). 2023. Advanced Clean Trucks. Available at: https://ww2.arb.ca.gov/our- work/programs/advanced-clean-trucks/about
30 CARB. Clean Car Standards – Pavley, Assembly Bill 1493. May 2013. Accessed November 14, 2022, at:
http://www.arb.ca.gov/cc/ccms/ccms.htm

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52 transition to a 100-percent zero-emission bus fleet by 2040. Under ICT, large transit agencies are expected to roadmaps towards zero-emission public transit buses.31 The effects of the ICT regulation on GHG emissions are modeled in EMFAC2021 and are therefore captured in the emissions factor for buses and inherently included in the forecast for the bus category.

Energy Legislation
California Code of Regulations – Title 24
Although it was not originally intended to reduce GHG emissions, California Code of Regulations Title 24, Part 6: California’s Energy Efficiency Standards for Residential and Commercial Buildings, was adopted in 1978 to reduce California’s energy consumption, which in turn reduced fossil fuel consumption and associated GHG emissions. The standards are updated triennially to allow consideration and possible incorporation of new energy-efficient technologies and methods.

Starting in 2020, new residential developments had to include on-site solar generation and near- zero net energy use. For projects implemented after January 1, 2020, the California Energy Commission (CEC) estimated that the 2019 standards would reduce electricity consumption by 53 percent for residential buildings and 30 percent for nonresidential buildings, relative to the 2016 standards. The CEC further estimated residential natural gas efficiency increases of 7 percent for residential end-uses.
32 No efficiency increases were estimated for commercial natural gas end-uses, based on lack of requirements in this sector in the 2019 standards. These percentage savings relate to heating, cooling, lighting, and water heating only and do not include other appliances, outdoor lighting not attached to buildings, plug loads, or other energy uses. In December 2022, the CEC published the new Title 24 2022 Building Efficiency Standards. 33 Due to the complexity of the new code, there is currently no available model establishing projected efficiency increases. Therefore, the updated 2022 code was not included in the forecast. This provides a conservative estimate of forecasted GHG emission reductions resulting from efficiency increases.

Renewables Portfolio Standard, Senate Bills 1078, 100, 350, and 1020 Established in 2002 under SB 1078, enhanced in 2015 by SB 350, and accelerated in 2018 under SB 100, California’s Renewable Portfolio Standard (RPS) is one of the most ambitious renewable energy standards in the country. The RPS program requires investor-owned utilities, publicly owned utilities, electric service providers, and community choice aggregators to increase procurement from eligible renewable energy resources to 50 percent of total procurement by 2026, and 60 percent of total procurement by 2030. The RPS program further requires that by 2045, 100 percent of total energy procured be a combination of eligible renewable energy resources and zero-carbon resources.

California’s RPS was further accelerated in 2022 by SB 1020 which established additional requirements that procurement from eligible renewable energy resources and zero-carbon resources increase to 90 percent of total procurement by 2035 and 95 percent of total procurement

31 Innovative Clean Transit. Approved August 13, 2019. Accessed November 14, 2022 at: https://ww2.arb.ca.gov/sites/default/files/2019- 10/ictfro-Clean-Final_0.pdf?utm_medium=email&utm_source=govdelivery 32 California Energy Commission. 2019 Building Energy Efficiency Standards Frequently Asked Questions. January 1, 2020. Accessed November 8, 2022 at: https://www.energy.ca.gov/sites/default/files/2020-03/Title_24_2019_Building_Standards_FAQ_ada.pdf 33 California Energy Commission (CEC). 2023. 2022 Building Energy Efficiency Standards. Available at:
https://www.energy.ca.gov/programs-and-topics/programs/building-energy-efficiency-standards/2022-building-energy-efficiency

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by 2040. The requirements of SB 1020 do not affect those previously set forth – they are to be considered in addition to the existing RPS requirements. The RPS program and SB 1020 were incorporated into the GHG forecast by adjusting the electricity emissions factors for future years, as discussed in Section 4.4.

PG&E as well as RCEA currently provide electricity to Campbell and are subject to the RPS requirements. Weighted emission factors adjusted for RPS requirements were used to project emissions through 2045. Table 43 provides the estimated electricity emission factors that would result from RPS
Table 43 Forecasted RPS and Weighted Electricity Emission Factor Metric 2022 2030 2035 2040 2045
Renewables Portfolio
Standard Percentage (PG&E)
38% 60% 90% 95% 100%
Renewables Portfolio
Standard (SVCE)
1 46% 65% 90% 95% 100%
SVCE GreenPrime 95% – – – –
SVCE GreenStart 45% – – – –
California Grid (eGRID;
CAMX)
34% 60% 90% 95% 100%
San Jose Clean Energy Green
Value
40% 60% 90% 95% 100%
Residential Weighted EF
(MT CO2e/kWh)

0.0000321923 0.0000208012 0.0000059260 0.0000029630 0.0000000000 Commercial Weighted EF
(MT CO2e/kWh)

0.0000324455 0.0000209648 0.0000059726 0.0000029863 0.0000000000 SVCE GreenStart Weighted
EF (MT CO2e/kwh)

0.00003266 0.0000207451 0.0000059272 0.0000029636 0.0000000000 PG&E EF (MT CO2e/kWh) 0.00002630 0.0000170510 0.0000042627 0.0000021314 0.0000000000 San Jose Clean Energy
GreenValue EF (MT
CO2e/kWh)

0.00009525 0.0000637154 0.0000159288 0.0000079644 0.0000000000 Weighted Water (SJCE and
SVCE) EF MT CO2e)

0.00006396 0.0000422302 0.0000109280 0.0000054640 0.0000000000 Notes: MT CO2e = Metric tons of carbon dioxide equivalent; kWh = kilowatt-hour; EF = emissions factor 1 Weighted average calculated off kWh split across GreenPrime and GreenStart Rates observed for 2022 Community Inventory.

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54 Waste Legislation
Assembly Bill 939 and Assembly Bill 341
In 2011, AB 341 set the target of 75 percent recycling, composting, or source reduction of solid waste by 2020, calling for the California Department of Resources Recycling and Recovery (also known as CalRecycle) to take a statewide approach to decreasing California’s reliance on landfills.

This target was an update to the former target of 50 percent waste diversion set by AB 939.

As actions under AB 341 are not assigned to specific local jurisdictions, potential future reductions from the bill were conservatively not included in the GHG forecast analysis.

Assembly Bill 1826
In 2014, AB 1826 set regulations in place requiring California businesses to recycle all their organic waste starting in April 2016. The bill also required jurisdictions across the State to provide organic waste recycling programs to accommodate diverted waste from local businesses. Campbell has already implemented a residential and commercial organics collection program (further described below under Senate Bill 1383).
34 Because of this, AB 1826 compliance is reflected in the community’s inventory and is thereby included in the BAU and adjusted forecast.

Senate Bill 1383
SB 1383 established a methane emission reduction target for short-lived climate pollutants in various sectors of the economy, including waste. Specifically, SB 1383 establishes targets to achieve a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction by 2025.35 Additionally, SB 1383 requires a 20 percent reduction in “current” edible food disposal by 2025.36 Although SB 1383 has been signed into law, compliance with this Senate Bill must occur at the local level. Reductions in organics diversion in 2022 are already included in base data that was used to forecast future emissions from landfilled waste in 2023. As of 2022, 20 percent of Campbell’s total generated waste was diverted green waste (17 percent) and mixed organics (2 percent). As only landfilled waste was included in the inventory, the level of organic diversion that occurred in 2022 is captured in both the BAU and Adjusted Forecast.

Due to the difficulty of local jurisdictions meeting the organic waste targets set by SB 1838, anticipated emissions reductions attributable to SB 1383 beyond current diversion rates observed in 2022 data are conservatively excluded from the forecast. However, estimated impacts associated with achieving SB 1383 with increased organics diversion will be included in the GHG reduction measures in the CAAP.

4.2.2 Legislative Adjusted Scenario Forecast Results
In the adjusted emissions forecast, all sectors are expected to increase except for water energy conveyance. While electricity shows a downward trend approaching zero in 2045 due to stringent RPS requirements from SB 100 and SB 1020, this is counteracted by natural gas consumption

34 https://www.campbellca.gov/508/Garbage-Recycling-Services 35 CalRecycle. California’s Short-Lived Climate Pollutant Reduction Strategy. https://calrecycle.ca.gov/organics/slcp/ 36 SB 1383 does not specify a baseline year for the 20 percent food recovery target; however, CalRecycle’s 2018 statewide waste characterization studies will be used to help measure the baseline for the State to meet its SB 1383 goals. See CalRecycle FAQ accessed November 14, 2022 for more
information:https://calrecycle.ca.gov/organics/slcp/faq/foodrecovery/#:~:text=SB%201383%20requires%20the%20state,for%20individua l%20jurisdictions%20to%20achieve.

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growth. Anticipated decreases in per capita transportation emissions (due to fuel efficiency requirements, fleet turnover rates, and increased electric vehicle penetration) are offset by anticipated population growth. As most current regulations expire in 2025 or 2030, emissions standards will experience diminishing returns while VMT continue to increase. A detailed summary of Campbell’s projected GHG emissions by sector under the adjusted forecast through 2045 can be found in Table 44 and shown in a data visualization in Figure 6.

Table 44 Legislative Adjusted Scenario Forecast Results GHG Emissions Source 2022 2030 2035 2040 2045
Residential Electricity + T&D 2,784 2,116 642 343 0
Commercial Electricity + T&D 3,242 2,219 656 341 0
Direct Access + T&D 4,407 3,288 884 476 0
Residential Natural Gas 30,723 41,207 45,798 50,928 56,662 Residential Natural Gas Leaks 8,638 11,586 12,876 14,319 15,931 Commercial Natural Gas 14,869 16,121 16,956 17,834 18,758 Commercial Natural Gas Leaks 4,181 4,532 4,767 5,014 5,274 Energy Sector Total 68,843 81,068 82,580 89,255 96,625
On-road Passenger Vehicles 113,433 128,789 134,369 144,752 159,135 On-road Commercial Vehicles 15,647 14,010 12,391 11,348 10,979 On-road Buses 1,599 1,741 1,381 1,291 1,219
Off-road Equipment 12,811 14,131 14,984 15,883 16,391
Transportation Sector Total 143,490 158,671 163,124 173,274 187,724 Waste 9,795 12,076 13,078 14,169 15,358
Water 98 80 22 12 0
Wastewater 944 1,158 1,245 1,347 1,458
Total GHG Emissions 223,170 253,589 259,897 277,961 301,165 Change Since 2022 0% 13% 16% 25% 35%
Notes: all values are presented in MT CO2e = Metric tons of carbon dioxide equivalent, N/A = not applicable

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56 Figure 6 Adjusted Forecast Results

4.2.3 Legislative GHG Emission Reduction Contribution
A summary of the reductions from the BAU forecast due to the contribution of legislation described above in that can be expected under the adjusted forecast are provided in Table 45.

Table 45 Summary of Legislative GHG Emissions Reductions (MT CO2e) Legislation 2022 2030 2035 2040 2045
California RPS 0 4,433 10,508 12,236 14,121
Title 24 0 1,742 2,562 3,461 4,457
Transportation Legislation (Pavley,
Innovative Clean Transit, etc.)
0 29,270 44,568 56,600 66,382
Total 0 35,445 57,638 72,296 84,960
Notes: all values are presented in MT CO2e = Metric tons of carbon dioxide equivalent

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5 GHG Emissions Targets
GHG reduction targets are used in climate action planning to help measure a community’s commitment and progress. CARB encourages local agencies to take ambitious, coordinated climate action that is consistent with and supportive of the state’s reduction goals for 2030 and 2045.37 CARB has issued several guidance documents concerning the establishment of GHG emission reduction targets for CAPs to comply with California Environmental Quality Act (CEQA) Guidelines § 15183.5(b). Even if a plan is not CEQA-qualified, CARB has long recommended that local targets be a part of the process of developing, monitoring, and updating a CAP.

5.1 1990 Level GHG Emissions Backcast
Campbell does not have a 1990 GHG emissions inventory from which to develop GHG reduction targets consistent with SB 32, however, this can be estimated for the community relative to Campbell’s 2022 inventory using a state-level emissions change metric.

As State’s 2022 GHG emissions inventory has not yet been published, Rincon used the 2021 inventory38 to calculate approximate percent reduction in the Campbell community since 1990.

The calculation is developed using emissions results from CARB39—removing emissions from sectors not included in Campbell’s inventory (e.g., non-specified, industrial point sources, agricultural and forestry land management practices). This approach assumes that Campbell’s community activities and associated GHG emissions have generally tracked with statewide trends as shown in Table 46.

Table 46 1990 Backcast for Campbell
Entity 1990 2021 (State) / 2022 (Campbell) Percent Difference State (MMT CO2e)1 255 305 16%
Campbell (MT CO2e)2 267,043 223,170 16%
1 State Emissions are expressed in Million Metric Tons (MMT) of CO2e. 2021 emissions inventory source: https://ww2.arb.ca.gov/ghg- inventory-data; 1990 Inventory source: https://ww3.arb.ca.gov/cc/inventory/pubs/reports/staff_report_1990_level.pdf 2 2022 Inventory results consistent with community inventory, with a 16% increase applied to back-cast 1990 levels. Units are expressed in MT CO2e, consistent with the community inventory.

37 California Air Resources Board. 2022. California’s Climate Change Scoping Plan, p.268. https://ww2.arb.ca.gov/sites/default/files/2023- 04/2022-sp.pdf
38 The State’s 2020 GHG emissions inventory was used as this is the most recently available statewide inventory from CARB. It is assumed that the 1990-2020 Statewide GHG emissions change is similar to the 1990-2021 Statewide GHG emissions change, therefore it can be used to estimate 1990 level GHG emissions for Campbell based on the 2022 Campbell GHG Inventory. 39 California Air Resources Board. 2023. California GHG Emission Inventory Program. https://ww2.arb.ca.gov/sites/default/files/2023- 04/2022-sp.pdf

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58 5.2 GHG Emissions Reduction Target Setting
Setting targets can help develop a trajectory that can allow for deep decarbonization in an incremental, cost-effective manner. CARB guidance is for jurisdictions to first strive to exceed the SB 32 targets of reducing GHG emissions 40 percent below 1990 levels, while establishing a policy framework to achieve the long-term target of carbon neutrality by 2045.

Target setting is an iterative process which must be informed by the reductions that can realistically be achieved through the development of feasible GHG reduction measures. As such, the targets identified herein should remain provisional until the quantification and analysis of potential measures have been completed.

Achieving the established targets will require major shifts in how communities within California obtain and use energy, transport themselves and goods, and how the population lives and builds.

Campbell’s provisional GHG emission reduction targets are:
 Reduce GHG emissions to 40 percent below 1990 levels by 2030 (SB 32 target year)  Make substantial progress towards carbon neutrality by 2045 (AB 1279 target year) Campbell’s GHG emissions reduction gap is based on the difference between the Adjusted Forecast, discussed previously, and the established GHG emission reduction targets. Table 47 provides a summary of the GHG emission reduction targets in mass emissions.

Table 47 GHG Emissions Reduction Targets and Gap Analysis Metric 2022 2030 2035 2040 2045
Adjusted Forecast (State Legislation) 223,170 252,589 259,897 277,961 301,165 SB 32 Mass Emissions Pathway 223,170 160,226 106,817 53,409 0 Remaining Emissions Gap 0 92,364 153,080 224,553 301,165 Notes: MT CO2e = Metric tons of carbon dioxide equivalent Emissions have been rounded to the nearest whole number and therefore sums may not match. 1 The target pathway is calculated by reducing 1990 mass emissions by 40% in 2030 and to 0 in 2045. This provisional target pathway is consistent with both SB 32 and a trajectory set forth to achieve AB 1279.

As demonstrated in Figure 7, Campbell will need to reduce 92,364 MT CO2e by 2030, and 301,165 MT CO2e by 2045 in order to meet State targets.

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Figure 7 GHG Emissions Forecast and Provisional Target Pathways (Mass Emissions)

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City
Council
Report

TITLE: Council Committee Reports

RECOMMENDED ACTION

That the City Council report on activities from their committee assignments.

DISCUSSION
This is the section of the City Council Agenda that allows the City Councilmembers to report on items of interest and the work of City Council Subcommittees.

MAYOR LANDRY
Advisory Commissioner Appointment Interview Subcommittee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Education Subcommittee
Economic Development Subcommittee
West Valley Mayors and Managers

DCBA Liaison
Santa Clara County Housing and Community Development Advisory Committee Santa Clara Valley Water District County Water Commission Santa Clara County Library District JPA Board of Directors Cities Association of Santa Clara County - City Selection Committee

Friends of the Heritage Theater Liaison (Alt.)
West Valley Clean Water JPA (Alt.)
West Valley Solid Waste Authority JPA (Alt.)

VICE MAYOR LOPEZ
City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Economic Development Subcommittee
Finance Subcommittee
Legislative Subcommittee

Silicon Valley Clean Energy Audit Committee
Item: 10
Category: COUNCIL COMMITTEE

REPORTS
Meeting Date: September 17, 2024
10 Packet Pg. 449
Council Committee Reports Page 2 of 3
Bay Area Quality Management District Board of Directors** League of Cities Peninsula Division Executive Committee** Valley Transportation Authority Board of Directors**

West Valley Mayors and Managers (Alt.)
Cities Association of Santa Clara County:

Board Representative (Alt.)
Legislative Action Committee and City Selection Committee (Alt.) Silicon Valley Clean Energy JPA Board of Directors (Alt.) West Valley Sanitation District (Alt.)

COUNCILMEMBER BYBEE:

Finance Subcommittee
Legislative Subcommittee

Cities Association of Santa Clara County:

Board Representative
Legislative Action Committee
Silicon Valley Animal Control Authority Board (SVACA)

Silicon Valley Clean Energy JPA Board of Directors
Campbell Historical Museum & Ainsley House Foundation Liaison (Alt.) West Valley Sanitation District (Alt.)

COUNCILMEMBER FURTADO
Advisory Commissioner Appointment Interview Committee

West Valley Clean Water JPA
West Valley Sanitation District
West Valley Solid Waste Authority JPA
Association of Bay Area Governments (ABAG)
Silicon Valley Regional Interoperability Authority (SVRIA) Santa Clara County Emergency Operational Council (EOAC)**

Silicon Valley Animal Control Authority Board (SVACA) (Alt.) Valley Transportation Authority Policy Advisory Committee (Alt.)

COUNCILMEMBER SCOZZOLA
Campbell Historical Museum & Ainsley House Foundation Liaison Friends of the Heritage Theater Liaison
Education Subcommittee

Silicon Valley Clean Energy JPA Board of Directors
Silicon Valley Clean Energy Finance and Administration Committee Valley Transportation Authority Policy Advisory Board

10 Packet Pg. 450
Council Committee Reports Page 3 of 3
Santa Clara Valley Water District: County Water Commission (Alt.) DCBA Liaison (Alt.)
Santa Clara County Housing and Community Development Advisory Committee (Alt.) Santa Clara County Library District JPA Board of Directors (Alt.) Association of Bay Area Governments (Alt.)

**appointed by other agencies

Prepared by:

Kristen Epolite, Deputy City Clerk

10 Packet Pg. 451
To: Honorable Mayor and City Council

Date: September 17, 2024
From: Andrea Sanders, City Clerk
Subject: Desk Item 5 – Revised Contract Documents

Following the complet ion and submittal of the staff report for Item 5, staff received a revised contract template for Construction Projects from the City Attorney’s Office. The revised template clarifies that all “Contract Documents” as defined in Article II are understood to be part of the Agreement. Additionally, Article III provides clarification regarding the definition of “Standard Specifications” and provides language regarding which reference documents take precedence over others, in the event of conflicting information.

The revised contract has been attached for your reference.

City of Campbell

MEMORANDUM

City Clerk’s Office

CONTRACT

BETWEEN CITY OF CAMPBELL AND

FOR CONSTRUCTION OF
CITY FACILITIES ROOF REPLACEMENT, PROJECT NO. 24-TT (FY 2025) –

CAMPBELL COMMUNITY CENTER BUILDINGS D AND H

THIS AGREEMENT made and concluded in duplicate, this day of , 20 __ by and between hereinafter referred to as "CONTRACTOR", and the City of Campbell, a Municipal Corporation, hereinafter referred to as "CITY". City and Contractor are also referred to individually as a “Party” or collectively, as the “Parties”.

WITNESSETH, that the parties hereto do mutually agree as follows:

ARTICLE I. That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by CITY, and under the conditions expressed in the two (2) bonds, bearing even date with these presents, and hereunto annexed, the CONTRACTOR agrees with the CITY, at its own proper cost and expense, to do all the Work and furnish all plant, labor, services, tools, equipment, supplies, transportation, utilities, and materials, except such as are mentioned in the Contract Documents to be furnished by the CITY, necessary to construct and complete to the satisfaction of the Engineer, in accordance with the Contract Documents for:

CITY FACILITIES ROOF REPLACEMENT, PROJECT NO. 24-TT (FY 2025) –

CAMPBELL COMMUNITY CENTER BUILDINGS D AND H

, hereinafter referred to as the “Project” or the “Work” in strict conformity and compliance with the Contract Documents, and to do everything required by said Contract Documents as hereinafter defined.

ARTICLE II. It is expressly agreed and understood by each and every party to this Agreement that the following documents are hereby incorporated and made a part of this Agreement (hereinafter the “Contract Documents”):

1. All applicable Laws and Regulations

2. Duly issued Agreement modifications, and allowance authorization(s) signed by the City, in chronological order by effective date of each

3. This Agreement, including all exhibits

4. Labor and Material Bond (Payment Bond)

5. Performance Bond

6. Maintenance Bond (if required)

7. Insurance Certificate

8. Invitation for Bids for [Project Name] [Project Number], including the Project Specifications, drawings, and plans, all Exhibits, and all Addenda in the reverse order of issuance

9. Project Specifications, including all drawings

10. Standard Specifications, as hereinafter defined

The parties to this Agreement do hereby expressly acknowledge that they have read, understand, and promise to comply with each and every provision of Contract Documents. There are no Contract Documents other than those indicated above. In the event inconsistencies, conflicts, or ambiguities between and among the Contract Documents are discovered, the parties shall attempt to resolve any ambiguity, conflict, or inconsistenc y informally, recognizing that the Contract Documents shall take precedence in the order in which they are listed above. Inclusion of an order of precedence herein does not in any way negate or reduce Contractor’s obligation to report conflicts, discrepancies, apparent omissions, and similar matters to the City.

ARTICLE III. It is expressly agreed and understood by the Contractor that the “Standard Specifications” consists of the documents on file at the Public Works Department of the City of Campbell, entitled:

1. The City of Campbell General Provisions, dated March 2002;

2. The City of Campbell Standard Specifications and Details for Public Works Construction (CCSS), dated July 1994

3. The City of San Jose Standard Specifications (SJSS) and Standard Details (SJSD), dated July 1992

4. Standard Specifications of the State of California, Department of Transportation, dated 2018 (“State Specifications”); and

5. State of California /Caltrans: California Manual on Uniform Traffic Control Devices (CA MUTCD) (2014 Revision 8).

Where conflicts arise between the Standard Specifications, the parties agree that the Standard Specifications shall take precedence in the order in which they are listed above. Inclusion of an order of precedence herein does not in any way negate or reduce Contractor’s obligation to report conflicts, discrepancies, apparent omissions, and similar matters to the City.

ARTICLE IV. The CITY hereby promises and agrees with the CONTRACTOR to employ, and does hereby employ, the CONTRACTOR to provide the materials and to do the Work according to the terms and conditions herein contained and referred to, for the price aforesaid, and hereby contracts to pay the same at the time, and in the manner and upon the conditions herein set forth; and the CITY and the CONTRACTOR, for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained.

ARTICLE V. The CONTRACTOR agrees to receive and accept the prices indicated in the Contractor's signed Bid as full compensation for furnishing all materials and for doing all the Work contemplated and embraced in this Contract; also for all loss or damage, arising out of the nature of the Work aforesaid, or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by the CITY, and for all risks connected with the Work; also for all expenses incurred by or in consequence of the suspension or discontinuance of Work and for well and faithfully completing the Work, and the whole thereof, in the manner and according to the Contract Documents and the requirements of the Engineer, and also for furnishing the required bonds and insurance, and for doing all other things mentioned, contemplated or embraced in this Contract, and the Contract Documents.

ARTICLE VI. All activities of Contractor, its employees, agents, and/or subcontractors will be carried out in accordance with all applicable federal, state, and local laws and regulations.

ARTICLE VII. In accordance with the provisions of Section 3700 of the Labor Code, the Contractor will be required to secure the payment of worker's compensation to his employees.

By its signature hereunder, CONTRACTOR certifies that it is aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commencing the performance of the Work of this Contract.

ARTICLE VIII. The Project is a work of public improvement over which the CITY shall exercise general supervision. The CITY shall have the right to assume full and direct control over this Contract whenever the CITY, at its sole discretion, shall determine that its responsibility to the United States or the State of California so requires.

ARTICLE IX. The general prevailing wage rates as heretofore specified and any minimum wage rates indicated in the Special Provisions are hereby specifically referred to and by this reference are made a part of this Contract. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the Bid of CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said Bid conflicting herewith.

ARTICLE X. Contractor shall be responsible for complying with the provisions of California Labor Code Section 1771.1(a) which states:

A contractor or subcontractor shall not be qualified to bid on, be listed in a bid, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5 . It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.

ARTICLE XI. Contractor and any subcontractors under the Constructor shall comply with Section 1775 of the California Labor Code regarding prevailing wages.

ARTICLE XII. Contractor shall be responsible for complying with the provisions of Section 1776 of the California Labor Code concerning payroll records, as more specifically described in the City’s Standard Specifications.

ARTICLE XI II. Contractor shall be responsible for complying with the provisions of California Labor Code Sections 1777.5 through 1777.7, inclusive, concerning apprentices, as more specifically described in the City’s Standard Specifications.

ARTICLE XIV. Contractor shall be responsible for complying with the provisions of California Labor Code Sections 1810 through 1815, inclusive, concerning working hours, as more specifically described in the City’s Standard Specifications.

ARTICLE XV. Contractor's attention is directed to the City’s Standard Specifications regarding trench excavation.

ARTICLE XVI. In accordance with the City’s Standard Specifications, the sum of Two Thousand One Hundred Dollars ($2,100.00) will be assessed as liquidated damages for each and every calendar day's delay in finishing the work in excess of the number of working days prescribed.

Liquidated damages shall also be assessed for non- compliance with the requirements stated in "Hours of Work" under Section 10 -1, “General Construction Requirements”, of these Special Provisions, and Section 10-2, "Traffic Control Requirements.”

The City further agrees that the Contractor shall not be assessed liquidated damages for delay in completion of the project, when such delay was caused by the failure of the City or the owner of the utility to move or relocate such utility facilities as set forth in California Government Code Section 4215.

ARTICLE XVII. Contractor shall be responsible for complying with the provisions of California Public Contracts Code Section 7104 regarding trenching and excavations that extend deeper than four (4) feet below the surface. No change order issued pursuant to California Public Contracts Code Section 7104 shall provide for any increase in compensation that would exceed the recovery allowed pursuant to the “Claims” section of the Special Provisions.

ARTICLE XVIII. The City of Campbell shall notify Contractor of the receipt of any third-party claim relating to this contract within 30 days of receipt. The City of Campbell may recover its reasonable costs incurred in providing such notification, pursuant to subdivisi on (c) of Public Contract Code Section 9201. Notwithstanding this notification provision, the City of Campbell reserves its full authority to compromise or otherwise settle any claim relating to this contract at any time.

ARTICLE XIX. The signatories to this Contract warrant and represent that each is authorized to execute this Contract and that their respective signatures serve to legally obligate their respective representatives, agents, successors, and assigns to comply with the provisions of this Contract.

IN WITNESS WHEREOF, the parties of these present have hereunto set their hands the year and date first above written, and having fully read and understood the terms and conditions of this contract, acknowledge their agreement to be bound thereby.

CONTRACTOR

Name:

Title:

(Attach Contractor's Acknowledgment)

CITY OF CAMPBELL

Name:

Title:

ATTEST:

Name:

Title: City Clerk

To: Honorable Mayor and City Council

Date: September 17, 2024
From: Andrea Sanders, City Clerk
Subject: Desk Item 7 – Revised Resolution

Attached is an updated resolution for Agenda Item 7 regarding the historic rescission of 67 Sunnyside Ave (PLN -2023-170). The revision is reflected on Finding No. 3, adding the word “not,” so it now reads:

“The proposed resource does not yield, nor has the potential to yield, information important to our prehistory or history.”

City of Campbell

MEMORANDUM

City Clerk’s Office

RESOLUTION NO. XXXX

BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CAMPBELL APPROVING THE REQUEST OF GLENN KINSEY TO

REMOVE A STRUCTURE OF MERIT FROM THE HISTORIC

RESOURCE INVENTORY (HRI) COMMONLY KNOWN AS THE
EMILE AND MAY FRITZ HOUSE, ON PROPERTY LOCATED AT 67

SUNNYSIDE AVENUE AND FINDING THE PROJECT
CATEGORICALLY EXEMPT UNDER SECTION 15061(B)(3) OF THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT. FILE NO.: PLN-
2023-170.

After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed.

The City Council finds as follows with regard to the recommended approval to rescind a Structure of Merit from the Historic Resource Inventory (PLN-2023-170):

1. The project site is an 8,400 square- foot project site is located along Sunnyside Avene, between South Winchester Boulevard and South First Street

2. The Project Site is zoned P -D (Planned Development ) as shown on the Campbell Zoning Map.

3. The Project Site is designated Low-Medium Density Residential (8-16 units/gr. Acre) as shown on the City of Campbell General Plan Land Use diagram.

4. The Subject Property is currently developed with a single -family residence in a Folk Victorian style constructed around 1900, commonly known as the Emile and May Fritz House. The building is one and a half stories tall, with the main floor situated above a raised crawlspace. This crawlspace had been converted into two separate basement apartments (69 and 71 Sunnyside Avenue), but the current homeowner has since combined them to create a home office space. A detached garage was constructed in 1995 via Building Permit BLD 95-309.

5. The property at 67 Sunnyside Avenue was flagged in a 1977 citywide historical resource survey and subsequently included in the City's Historic Resource Inventory (HRI) in 1984, following the City Council's approval of Resolution No. 6793, which established a master list of 127 historic properties.

6. As detailed in the DPR Form and the 1977 Survey, the property was listed on the HRI for its Queen Anne Cottage architectural style and the historical significance of the builder's connection to the Kennedy family.

7. The applicant submitted a request to remove the subject building from the City’s Historic Resource Inventory, supported by a Historic Resource Evaluation prepared by Garavaglia Architecture, Inc. on October 4, 2023. While the Garavaglia evaluation City Council No. xx Page 2 of 4
PLN-2023-170 – 67 Sunnyside Ave. ~ Historic Recission
assessed the property's eligibility for listing on the National Register of Historic Places and the California Register of Historical Resources, it did not address the City’s local criteria for rescinding a Structure of Merit as specified in CMC Section

21.33.060.B.1. To address this gap, staff enlisted the historic consultant Mark Sandoval to conduct an independent peer review and analysis, which included evaluating the City’s local criteria for rescinding a Structure of Merit.

8. The Sandoval evaluation identifies the property as featuring some of the typical elements of the Folk Victorian style, a simpler derivative of the Queen Anne Cottage style. These elements include simple wood siding, a low -pitched pyramid roof, and plain window treatments. The Queen Anne Cottage style is particularly significant in Campbell, as highlighted in the City’s Historic Design Guidelines for Residential Buildings.

9. Both historic evaluations detail the property’s evolution over the years, noting that many original architectural features have been altered or removed since the 1984 historic designation. These changes include removal of original doors and windows, walling off the original screened front porch, addition of non- historic ornamental details, such as a louvre and spindles.

10. As detailed in both evaluations, the Kennedy family significantly contributed to the Campbell community from 1890 to 1935. This property, linked to Robert Kennedy's sister-in-law May Giles Fritz, lacks documented contributions to Campbell's history, as researched in the Garavaglia evaluation. Further research in the Sandoval evaluation indicates that Emile and May Giles Fritz, only related to the Kennedys by marriage, were not significant figures in Campbell's history. In contrast, other properties in the Campbell Historic Resources Inventory have stronger connections to the Kennedy family, further diminishing this property's historical importance.

Subsequent owners and tenants also lack notable contributions to the community.

11. Pursuant to CMC Section 21.33.060.D.1 (Initiation), rescinding of the property's historic designation requires the City Council, upon independent recommendations of the Historic Preservation Board and Planning Commission, to find that "based on substantial evidence and findings of fact in the record that the resource no longer has historic value with respect to the designation criteria.

12. The rescission of a structure's historic designation from the Historic Resource Inventory exempts the property from the provisions of the Historic Preservation Ordinance (CMC Chapter 21.33), including removing its eligibility for a future Mills Act contract.

13. Maintaining a property that has lost its historical integrity on the Historic Resource Inventory undermines the purpose of the list and dilutes the import of other listed properties. proposed by the property owner.

14. The property does not meet the criteria for maintaining its historic S tructure of Merit status due to significant alterations that have compromised its architectural integrity, lack of association with significant historical events or notable individuals, and City Council No. xx Page 3 of 4
PLN-2023-170 – 67 Sunnyside Ave. ~ Historic Recission
absence of unique historical information or representation of notable architectural work. Consequently, its historical and architectural value has been significantly diminished.

15. Removing the Subject Property from the Historic Resource Inventory is justified due to significant alterations that have compromised its architectural integrity and its lack of association with significant historical events or notable individuals. This is consistent General Plan Goal COS -5, and its supporting policy and strategies and with the intent and purpose of the Historic Preservation Ordinance, as specified in CMC Section 21.33.010.B (Purpose of Chapter), by hindering the City's ability preserve culturally and historically significant resources and fulfilling its responsibility, as a certified local government, to enforce state and local legislation for the designation and protection of historic resources.

16. N
o substantial evidence has been presented which shows that the project, as currently presented and subject to the required conditions of approval, will have a significant adverse impact on the environment.

Based upon the foregoing findings of fact, the City Council further finds and concludes that:

Historic Resour
ce Recission Findings (CMC Sec. 21.33.060.D):

1. The proposed resource is not associated with events that hav e made an important contribution to the broad patterns of our history or cultural heritage;

2. The proposed resource is not associated with the lives of p ersons important to our history;

3. The proposed resource does not yield, nor has the potential to yield, information important to our prehistory or history;

4. The proposed resource does not embody the distinctive characteristics of a type, architectural style, period, or method of construction;

5. The proposed resource does not represents the work of a notable architect, designer, engineer, or builder; and
Environmental Findings (CMC Sec. 21.38.050):

6. This project is Categorically Exempt under Section 15061(b)(3) of the California Environmental Quality Act (CEQA) in that it can be seen with certainty that there is no possibility for the action to have a significant effect on the environment, because the structure does not constitute an "historic resource" under CEQA.

THEREFORE, BE IT RESOLVED that the C ity Council approves the request to rescind the historic designation of a Structure of Merit
from the Historic Resource Inventory (HRI)
commonly known as the Emile and M ay Fritz house, on property located at 67 Sunnyside Avenue.

City Council No. xx Page 4 of 4
PLN-2023-170 – 67 Sunnyside Ave. ~ Historic Recission
PASSED AND ADOPTED this 17th day of September 2024, by the following roll call vote:

AYES: Members:

NOES: Members:

ABSENT: Members:

ABSTAIN: Members:

APPROVED:

Susan Landry, Mayor

ATTEST:

Andrea Sanders, City Clerk

Campbell City CouncilSeptember 17, 2024

Campbell City Council
September 17, 2024