Orinda City Council
May 9, 2023

MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THIS MEETING

IN PERSON, BY TELECONFERENCE, OR VIEW ON YOUTUBE AS LISTED BELOW https://www.youtube.com/@cityoforinda9535/streams
Zoom Webinar:
https://tinyurl.com/OrindaCityCouncil
Phone:669 444 9171
Webinar ID:
810 2271 2723
In Person:

Orinda Library Auditorium
26 Orinda Way
Orinda, CA 94563
(925) 351-6676

CITY COUNCIL
AGENDA
Tuesday, May 9, 2023
7:00 PM - REGULAR MEETING
City Council
Agenda Page 1 05.09.23
How to follow and/or participate in the meeting:

IN PERSON SPEAKER CARDS: If you would like to speak during the public forum or on an item listed on the agenda, you are invited to submit a speaker card to the City Clerk. You will be permitted to speak even if you elect not to submit a speaker card or decline to provide information requested on the card. After the City Council has heard from everyone who submitted speaker cards, anyone electing not to submit a speaker card may form a line at the lectern. Public comment is generally limited to 3 minutes per speaker per agenda item.

REMOTE COMMENTS: Use the Zoom “raise hand” function on your computer screen, or the *9 function on your phone to comment remotely. Public comment is generally limited to 3 minutes per speaker per agenda item.

WRITTEN COMMENTS: You may also submit a public comment in advance of the meeting by following instructions below:

Deliver to City Hall at 22 Orinda Way or send an e-mail to [email protected] by 3pm on the day of the meeting. Those comments will be forwarded to the City Council. They will also be made a part of the public record and be available to view in the public review binder at Orinda City Hall, 22 Orinda Way. In addition, they will be available electronically by 5pm on the day of the meeting by selecting the date of the meeting in this Box account link:
https://tinyurl.com/Orinda-Public-Comments
7:00 PM - REGULAR SESSION
A. CALL TO ORDER / ROLL CALL
Councilmembers: Brandyn Iverson, Latika Malkani, Janet Riley Vice Mayor Darlene Gee, Mayor Inga Miller
City Council
Agenda Page 2 05.09.23
B. PLEDGE OF ALLEGIANCE
C. ADOPTION OF AGENDA
The City Council may take action on any item listed on the agenda.

D. ITEMS FOR THE GOOD OF THE CITY
D.1. Orinda-Miramonte Photography Challenge Presentations D.2. Proclamation Declaring The First Friday in June, 2023 as National Gun Violence Awareness Day in Orinda
D.3. Proclamation Recognizing May, 2023 as Jewish American Heritage Month
D.4. Proclamation Recognizing May, 2023 as Asian Pacific Islander Heritage Month
D.5. Proclamation Recognizing EBMUD Centennial Anniversary - May 22, 2023
D.6. Orinda Teen Advisory Committee Annual Report
D.7. Orinda Association Annual Report
E. PUBLIC FORUM
The public forum provides an opportunity for members of the public to speak on any item within the jurisdiction of the City Council that is not on the agenda.

Additionally, a speaker has the option of addressing the Council on an item listed on the agenda, if the speaker will not be present when that agenda item is taken up. When an item is not listed on the agenda, State law prohibits Council discussion or action. Councilmembers may only “briefly respond” to statements made and questions posed. For example, State law allows Councilmembers to ask questions for clarification and provide a reference to staff or other resources for factual information. Additionally, consistent with the “Matters Initiated” rule contained in its Policies and Procedures Manual, the Council may also direct staff to report back and/or place a matter on a future agenda for discussion.

F. CONSENT CALENDAR
F.1. Quarterly Investment Report For Period Ending March 31, 2023 Recommendation:

Staff recommends that the City Council accept the Quarterly Investment Report for the period ending March 31, 2023.

City Council
Agenda Page 3 05.09.23
F.2. Approve Engineer's Report for the Levy of Annual Assessments; Providing Notice of Intention to Levy Annual Assessments; and Set June 6, 2023 as the date for the Hearing on the Levy of Assessments for Orinda Street Lighting and Landscaping Assessment District No. 1986-1 Zones L-42, M-9 and M-11 for Fiscal Year Ending June 30, 2024.

Recommendation:

Adopt Resolution No. 34-23, Approving the Engineer's Report for the Levy of Annual Assessments for Fiscal Year Ending June 30, 2024, Orinda Street Lighting and Landscaping Assessment District No. 1986-1, Zones L-42, M-9 and M-11 and Resolution No. 35-23, Intention to Levy and Collect Assessments for Fiscal Year Ending 2024 within the Orinda Street Lighting and Landscaping Assessment District No. 1986-1 Zones L-42, M-9 and M-11.

F.3. Contract Acceptance of the City Hall North Parking Lot Slope Stabilization Project No. 4108 with NBC Construction, Inc.

Recommendation:

Staff recommends that the City Council adopt Resolution No.33-23 Acceptance of Work for the City Hall North Parking Lot Slope Stabilization Project No. 4108 with NBC Construction, Inc. and authorize the City Clerk to sign and file the Notice of Completion with the Contra Costa County Clerk-Recorder.

F.4. New 3-year lease agreement with the Orinda Association for space at the Orinda Library
Recommendation:

Authorize the City Manager to execute on behalf of the City a new 3-year lease agreement with the Orinda Association.

F.5. New 3-year lease agreement with the Orinda Historical Society for space at the Orinda Library
Recommendation:

Authorize the City Manager to execute on behalf of the City a new 3-year lease agreement with the Orinda Historical Society.

F.6. New Retail Lease Agreement with So Jin Kim (dba Caffe Teatro) for space at the Orinda Library
Recommendation:

Authorize the City Manager to execute on behalf of the City a new 3-year Retail Lease agreement with So Jin Kim (dba Caffe Teatro) for space at the Orinda Library.

F.7. Partial Release of Retention to Bay Cities Paving & Grading, Inc. for the 2022 Annual Pavement Rehabilitation Project (Project No.4166 & Project No. 4165) and Moraga Way Pedestrian Pathway Project (Project No. 4168) and Approve Project Budget Changes/Corrections.

Recommendation:

City Council
Agenda Page 4 05.09.23
Staff recommends that the City Council approve the release of $140,000 in retention for the subject Bay Cities Paving and Grading Inc. Contract, and approve Budget Change Form #011-23 for Project No.4166.

G. PUBLIC HEARING
H. POLICY MATTERS
H.1. Roads and Storm Drain Needs Update
Recommendation:

Receive PowerPoint presentation from Staff.

H.2. Inclusionary Housing Ordinance - Continued From May 2, 2023 Recommendation:

Receive Report regarding Inclusionary Housing Ordinances, Discuss Key Parameters, and Direct Staff to Prepare an Ordinance for Review and Consideration.

H.3. Strategic Priorities for Fiscal Years 2023-24 and 2024-25 Recommendation:

Review and Confirm Strategic Priorities for the City as Revised I. COUNCILMEMBERS' REPORTS
J. CITY MANAGER'S REPORT
K. MATTERS INITIATED
L. CLOSED SESSION

1. OPEN SESSION IDENTIFICATION of Closed Session Matters

2. PUBLIC COMMENTS of Closed Session Matters

3. CLOSED SESSION
A. CONFERENCE WITH LABOR NEGOTIATORS. Pursuant to Government Code Section 54957.6 - Conference with the City's designated labor negotiators, David Biggs (City Manager), Doug Alessio, (Administrative Services Director), to review the City's position and instruct the City's designated representatives regarding negotiations all bargaining units.

B. CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION. Pursuant to Government Code Section 54956.9(d)(1), conference with Legal Counsel regarding existing litigation: ORINDANS FOR SAFE EMERGENCY EVACUATION v. City of Orinda, Contra Costa County Superior Court Case No. N23-0579.

4. OPEN SESSION REPORT REGARDING CLOSED SESSION
M. ADJOURNMENT
City Council
Agenda Page 5 05.09.23
The next meeting of the Orinda City Council will be held on Tuesday, June 06, 2023 at 7:00 PM.

Please visit the City’s website at www.cityoforinda.org to view the City Council Calendar.

I, Sheri Marie Smith, City Clerk, declare under penalty of perjury under the laws of the State of California that this special meeting agenda has been posted at least 24 hours in advance at the Orinda City Hall, 22 Orinda Way and the Orinda Library, 26 Orinda Way.

Additional copies are available at the Orinda Library, 26 Orinda Way, and at the City’s website at www.cityoforinda.org. At least 24 hours in advance of the meeting, this agenda was also delivered to and received by each member of the City Council as well as each local newspaper, radio station and television station requesting written notice of special meetings.

I, Sheri Marie Smith, City Clerk, declare under penalty of perjury under the laws of the State of California that this regular meeting agenda has been posted at least 72 hours in advance at the Orinda City Hall, 22 Orinda Way and the Orinda Library, 26 Orinda Way. Additional copies are available at the Orinda Library, 26 Orinda Way, and at the City’s website at www.cityoforinda.org
~ Notices ~
There is a 90-day limit for the filing of a challenge in Court to certain City decisions that require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6). Further, if you file a challenge in Court, you may be limited by California law, including but not limited to Government Code §65009, to those issues raised in connection with the public hearing. The City Council may be requested to reconsider a decision if the request is made prior to the next City Council meeting. For information on the next City Council meeting, please call 925.253.4221 or visit the website at www.cityoforinda.org. Unless otherwise noted, City Council actions include a determination that the California Environmental Quality Act (CEQA) does not apply. ~ Accessible Public Meetings ~
The City of Orinda will provide special assistance for disabled citizens to participate in public meetings upon advance notice. If you need auxiliary hearing aid or sign language assistance at least two (2) working days advanced notice is necessary. Please contact the City Clerk’s Office, 22 Orinda Way, Orinda, Ca 94563 or 925.253.4221 or [email protected] with the following information: name, mailing address, phone number and type of assistance requested.

First
Orinda-Miramonte
Photography
Challenge
Miramonte High School Student
competition to help the City of Orinda
build its social media and photography
library
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF January’s Prompt: Iconic Orinda
“The goal of this month is to photograph scenes of Orinda in its most majestic, this could be landscape photography, or architectural, or your subject could be something else, but it would need to be indicative of Orinda.

Something that others want to know, or what Orindians might recognize.

While the Miramonte mascot is an option, we would like to see photographers and artists stretch the prompt while not falling outside what is being asked for.”
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF January’s Selection: Colorful by M. Langs
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF February’s Prompt: Infrastructure
“Roads, Bridges, Pathways, Waterways, Trails...if it’s been built for public use (obviously we prefer seeing it in its correct use) we are curious to see if you can capture an interesting image.

Can you photograph water rushing into a storm drain, or workers repairing a section of road?
Can you show us new ways of looking at the things we take for granted?” D.1
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF February’s Selection: Rainy Leaf by R. Thompson
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF March’s Prompt: Wildfire Visual Dictionary
“When the Firefighters talk about wildfire they sometimes fall into jargon or ‘shoptalk’. They use words or acronyms that they know well but are sometimes not familiar to the public at large.

Help us not just tell Orinda residents what they mean but use your creative eye to show them what these terms represent.”
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF March’s Selection: Fire Fuels Mitigation by J. Hui
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF April’s Prompt: Lively City
“What does Orinda look like when it comes alive? Capture the soul of the city, why people want to live here and what happens. Imagine that you are on the tourist board and are trying to attract people to come visit Orinda.

What would you want to promote?
What would make someone like you excited to visit Orinda?” D.1
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF April’s Selection: Veggie Shopping by A. Lo
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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF Instrumental in the program’s success was Miramonte
High School Students, Faculty, and Leadership Class.

Mrs. Churchill - photography and digital design
Ms. Porter - science and leadership
Ms. Vanover - photography and digital design sub
The Miramonte Environmental Commission:

Hadley Peterson, Eva Crinks, Ava Dhaliwal, and Leo
Wampler.

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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF Thank you to all the students who submitted their artwork.

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Communication: Orinda-Miramonte Photography Challenge Presentations (ITEMS FOR THE GOOD OF 2023 CITY PROCLAMATION

DECLARING THE FIRST FRIDAY IN JUNE TO BE

NATIONAL GUN VIOLENCE AWARENESS DAY
This proclamation declares the first Friday in June to be National Gun Violence Awareness Day in the City of Orinda to honor and remember all victims and survivors of gun violence and to declare that we as a country must do more to end this public health crisis.

WHEREAS, every day, more than 120 Americans are killed by gun violence and more than 200 are shot and wounded, with an average of more than 17,000 gun homicides every year; and WHEREAS, Americans are 26 times more likely to die by gun homicide than people in other high-income countries; and
WHEREAS, in an average year, 3253 people die by guns in California, with a rate of eight deaths per 100,000 people, a crisis that costs the state $41.9 billion each year, of which $1.1 billion is paid by taxpayers; and
WHEREAS, gun homicides and assaults are concentrated in cities, with more than half of all firearm related gun deaths in the nation occurring in 127 cities; and WHEREAS, cities across the nation, including Orinda, are working to end the senseless violence with evidence-based solutions; and
WHEREAS, protecting public safety in the communities they serve is this Mayor’s and this City Council’s highest responsibility and a key City priority; and WHEREAS, support for the Second Amendment rights of law-abiding citizens goes hand-inhand with keeping guns away from people with dangerous histories; and WHEREAS, Mayors and law enforcement officers —in partnership with local violence intervention activists and resources —know their communities best, are the most familiar with local criminal activity and how to address it, and are best positioned to understand how to keep their citizens safe; and
WHEREAS, gun violence prevention is more important than ever as we see an increase in firearm homicides, and nonfatal shootings across the country, increased calls to domestic violence hotlines, and an increase in city gun violence across the nation; WHEREAS, in January 2013, Hadiya Pendleton was tragically shot and killed at age 15; and on June 2, 2023 to recognize the 26th birthday of Hadiya Pendleton (born: June 2, 1997), people across the United States will recognize National Gun Violence Awareness Day and wear orange in tribute to -
(1) Hadiya Pendleton and other victims of gun violence; and (2) the loved ones of those victims; and
WHEREAS, the idea was inspired by a group of Hadiya’s friends, who asked their classmates to commemorate her life by wearing orange; they chose this color because hunters wear orange to announce themselves to other hunters when out in the woods, and orange is a color that symbolizes the value of human life; and
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Communication: Proclamation Declaring The First Friday in June, 2023 as National Gun Violence Awareness Day in Orinda (ITEMS FOR THE WHEREAS, anyone can join this campaign by pledging to wear orange on June 2nd, the first Friday in June in 2023, to help raise awareness about gun violence; and WHEREAS, by wearing orange on June 2, 2023 Americans will raise awareness about gun violence and honor the lives of gun violence victims and survivors; and WHEREAS, we renew our commitment to reduce gun violence and pledge to do all we can to keep firearms out of the hands of people who should not have access to them, and encourage responsible gun ownership to help keep our families and communities safe.

NOW, THEREFORE BE IT RESOLVED, that Mayor Inga Miller of the City of Orinda, CA declares the first Friday in June, June 2, 2023, to be National Gun Violence Awareness Day. I encourage all citizens to support their local communities’ efforts to prevent the tragic effects of gun violence and to honor and value human lives.

Dated: May 9, 2023
Inga Miller
Mayor
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Communication: Proclamation Declaring The First Friday in June, 2023 as National Gun Violence Awareness Day in Orinda (ITEMS FOR THE

PROCLAMATION
Declaring May 2023 as Jewish American Heritage Month in Orinda WHEREAS, from our Nation's earliest days, Jewish Americans have been an essential part of the American story, greatly contributing to the religious, cultural, political, economic, and intellectual advancement of all people even while in the face of discrimination and adversity, working tirelessly to realize their piece of the American dream with relentless spirit, and these remarkable achievements have enriched our country, stirred our conscience, and challenged us to extend the miracles of freedom and security; and
WHEREAS, as we celebrate the rich heritage of the Jewish American community, in the City of Orinda and the nation, we recognize that American Jews have worked tirelessly to strengthen the promise of religious freedom and civil rights in the United States by joining together with all faiths to reject ignorance and intolerance, teach empathy and compassion, and root out hatred wherever it exists, and through our understanding and study of the Holocaust, we know the human devastation that can come from systemic prejudice, and are compelled to “never forget”; and
WHEREAS, we are reminded that the vibrant culture and life of the Jewish people has experienced prejudice and discrimination and that Jewish communities continue to confront hostility and bigotry, including in America, and the City of Orinda shares the obligation to condemn and combat anti-Semitism and hatred wherever it exists; and WHEREAS, May 2023 is recognized as Jewish American Heritage Month by Presidential Proclamation stating that The Jewish American experience is a story of faith, fortitude, and progress. It is a quintessential American experience — one that is connected to key tenets of American identity, including our Nation’s commitment to freedom of religion and conscience. This month, we honor Jewish Americans — past and present — who have inextricably woven their experience and their accomplishments into the fabric of our national identity; and WHEREAS, during Jewish American Heritage Month, the City of Orinda celebrates the hard-fought progress won through the struggle and sacrifice of Jewish Americans, and we rededicate ourselves to building a world where diversity is cherished and faith is protected.

NOW THEREFORE, as Mayor of the City of Orinda, I hereby proclaim May 2023 as Jewish American Heritage Month in the City of Orinda and call upon all residents to celebrate Jewish Americans who contributed immeasurably to the fabric American history, culture, science, education and social justice, and to many aspects of our local Orinda Community, to visit www.jewishheritagemonth.gov to learn more about the heritage and contributions of Jewish Americans, and to observe this month with solemn remembrance.

Dated: May 9, 2023
Inga Miller
Mayor, City of Orinda
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Communication: Proclamation Recognizing May, 2023 as Jewish American Heritage Month (ITEMS FOR THE GOOD OF THE CITY)

PROCLAMATION
Declaring May 2023 as Asian American and Pacific Islander Heritage Month WHEREAS, the month of May was chosen as Asian American and Pacific Islander Heritage Month to commemorate the immigration of the first Japanese citizen, Nakahama Manjiro, to the United States on May 7, 1843, and also the anniversary of the May 10, 1869 completion of the first Transcontinental Railroad, built with the back-breaking labor of nearly 20,000 Chinese immigrants; and
WHEREAS, Asian American and Pacific Islander Heritage Month is observed during the month of May to recognize the contributions and influence of Asian Americans and Pacific Islander Americans to the history, culture, and achievements of the United States; and WHEREAS, California and particularly the Bay Area is proud to be home to a large Asian American and Pacific Islander population that contributes greatly to the prosperity and enrichment of our Country; and
WHEREAS, Asian American and Pacific Islanders have distinguished themselves as leading researchers in science, medicine, and technology; innovative farmers and ranchers; distinguished lawyers, judges and government leaders; in the arts, literature, and sports; as war heroes who defended our country from fascism; and peacetime healthcare heroes currently on the front lines of the pandemic; and
WHEREAS, Asian American and Pacific Islander communities in California have shared their rich culture and traditions while representing their communities through public service and advocacy; we must also acknowledge a darker aspect of the AAPI experience in America - structural discrimination, prejudice and injustice that most recently manifested itself in racist attacks on Asian Americans related to the COVID-19 pandemic; and WHEREAS, diversity represents one of our greatest strengths, and by recognizing the contributions and accomplishments of Asian American and Pacific Islanders, Orinda and the Bay Area celebrate the importance of inclusion to building a brighter future for all of our citizens; and WHEREAS, Orinda is committed to providing comprehensive support to ensure that the Bay Area is equitable and welcoming to all people; and
WHEREAS, Asian American and Pacific Islanders join all Americans in the desire to see a peaceful and diverse society, where every individual is treated equally and feels safe; and WHEREAS, Asian American and Pacific Islander Heritage Month is an opportunity to celebrate the great pride and vibrancy of Asian Americans and Pacific Islanders in Orinda and the Bay Area, whose abilities, essential contributions, sacrifices and accomplishments, strengthen California’s economy, diverse culture, and communities NOW, THEREFORE BE IT RESOLVED, that I, Inga Miller, Mayor of the Orinda, on behalf of the City Council, do hereby proclaim May 2023 as “Asian American and Pacific Islander Heritage Month” in Orinda, and call this observance to the attention of all our citizens.

Dated: May 9, 2023
Inga Miller
Mayor, City of Orinda
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Communication: Proclamation Recognizing May, 2023 as Asian Pacific Islander Heritage Month (ITEMS FOR THE GOOD OF THE CITY)

PROCLAMATION
Congratulating the East Bay Municipal Utility District
on its Centennial Anniversary
WHEREAS, The California State Legislature adopted the Municipal Utility District Act (MUD Act) in 1921, allowing the creation of a special district to provide domestic water services across city and county jurisdictional boundaries; and WHEREAS, EBMUD was established on May 8, 1923, by the voters of seven East Bay cities to consolidate numerous private companies and provide safe, reliable water service; and
WHEREAS, EBMUD provides high-quality Mokelumne River water to homes and businesses of the East Bay through an extensive infrastructure system that includes Pardee and Camanche Reservoirs in the Sierra foothills, aqueducts spanning 90 miles, five East Bay reservoirs, state-of-the-art water treatment plants and pumps, and 4,200 miles of distribution pipes; and
WHEREAS, EBMUD’s duties were expanded in 1944, when voters established Special District No. 1, and since that time EBMUD built and has operated a wastewater treatment system to protect the health of San Francisco Bay, and EBMUD became the first utility in the nation to generate net renewable energy by capturing methane gas from the wastewater treatment process; and
WHEREAS, EBMUD successfully manages its water system to concurrently provide municipal water supply, restore and protect the environment, meet the needs of downstream water users, meet flood control requirements, and generate renewable energy through hydropower; and
WHEREAS, EBMUD acquired additional water rights and built facilities to access Sacramento River water in dry years, purchases supplemental supplies during dry years, and invests in water conservation and water recycling to ensure reliable, high-quality water supplies for generations to come; and
WHEREAS, EBMUD has been recognized for excellence in water treatment; is a leader in research and innovation; and is committed to investing in and maintaining infrastructure to ensure customers have dependable water supplies; and WHEREAS, EBMUD’s environmental leadership is demonstrated by establishing the first utility watershed master plan addressing water quality and biodiversity protection while balancing recreation access, supporting a healthy salmon fishery on the Mokelumne River, introducing pioneering water education and conservation services, and sponsoring state legislation to get lead out of drinking water plumbing fixtures that resulted in a national law; and
WHEREAS, EBMUD now serves 1.4 million drinking water customers in 20 incorporated and 15 unincorporated cities and communities and supports a regional $748 billion Bay Area economy that is essential to the economic health of California; and D.5
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Communication: Proclamation Recognizing EBMUD Centennial Anniversary - May 22, 2023 (ITEMS FOR THE GOOD OF THE CITY) WHEREAS, EBMUD is a major Bay Area employer with employees working in a broad range of trades, technical, administrative and scientific fields, and is committed to cultivating diversity, advancing equity and ensuring an inclusive culture for its employees, customers, and the communities it serves; and
WHEREAS, the East Bay Municipal Utility District has provided 100 years of responsible and exemplary public service.

NOW THEREFORE BE IT RESOLVED BY the City of Orinda, that they congratulate the East Bay Municipal Utility District on its Centennial Anniversary.

Dated this 9th day of May, 2023.

Inga Miller
Mayor, City of Orinda
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Communication: Proclamation Recognizing EBMUD Centennial Anniversary - May 22, 2023 (ITEMS FOR THE GOOD OF THE CITY) The Orinda Association Annual Report and Program Update for 2022 The Orinda Association (OA) is a 501(c)3 dedicated to enhancing our community and enriching the quality of life for Orinda residents. Our main programs include The Orinda News, The Orinda Volunteer Center, an Annual 4th of July Parade, the Orinda Seniors Around Town ride program and specialized Public Forums. The OA office is located at 26 Orinda Way, and the OA website is www.orindaassociation.org.

In 2022 we welcomed New Board Members Kelly Sopak, Grace Piak and Lauren White. The 2022 roster of board members was as follows:

Officers: President Sally Hogarty, Vice President Latika Malkani, Treasurer Cindy Powell, Secretary Marianne Moser; Board Members: Carlos Baltodano, Barb Brawner, Jacalyn Buettner, Joe Haughin, Chris Laszcz-Davis, Diane Lautz, Grace Paik, Kelly Sopak, Bill Waterman, Lauren White, and Kate Wiley. All officers and board members volunteer their time.

The Orinda News is mailed free of charge to almost 9,000 households and businesses throughout Orinda each month.

The newspaper continues to be the primary local news source for people in Orinda. The Orinda Association covers all costs associated with the operation of the newspaper, including all office and staff costs.

The website for The Orinda News is regularly updated, see www.theorindanews.com. The cost of developing, implementing, and maintaining the site is paid for by the OA.

The Volunteer Center is open from 9 am to 4 pm, Monday-Friday and offers an updated 2022 Volunteer Guide online with local volunteer opportunities sorted by Adult and Youth, and nonprofit group listings. There is a short summary of each group, with website and contact information. Additionally, The OA supports other nonprofits with free publicity in The Orinda News.

The Lions Recycle for Sight collection box continues to be over-filled with eyeglasses for the monthly collection. This program is promoted on the Lions Club website and a classified ad in The Orinda News.

In 2022, we were again unable to present our Orinda Volunteer Awards or the OA’s William Penn Mott, Jr. Environmental Award. The Mott award recipient from 2019, Barbara Leitner and Eagle Scouts of Orinda, 2022 recipient, will be part of an awards event with the 2023 recipient in June 2023.

Seniors Around Town (SAT) was established in 2005 and provides free, door-to-door transportation for Orinda’s seniors.

Many riders are on fixed incomes; 30% live in Section 8/affordable housing. Orinda residents, who are registered SAT Volunteers, use their personal vehicles to provide transportation for seniors who are unable to drive themselves. The program provides rides to non-emergency medical appointments (e.g., dialysis, cancer treatment), personal care appointments and grocery shopping.

DRIVER

STATISTICS
Total # of
Rides Given
Volunteer
Hours
Volunteer
Miles Driven
Jan.-Dec. 2022 1196 973 14,830
The Orinda Classic Car Show supplies most of the funds to the SAT program. The Orinda Association provides end-toend operations of this annual event. This includes website management, advertising, office and administrative support for car show vehicle registrations and payments, and coordination of non-staff volunteers. Additionally, coverage and advertising are provided by The Orinda News.

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Communication: Orinda Association Annual Report (ITEMS FOR THE GOOD OF THE CITY) Orinda’s 4th of July Parade (est. 1984) and Celebration is funded with sponsorships and donations and produced by volunteers. The OA partnered with Orinda Parks and Rec on activities in the park and the Library Plaza. The City of Orinda provided police and public works services prior to and on the day of the event. Over 80 volunteers worked the day of the event and the Parade Committee, headed by board members Sally Hogarty and Marianne Moser, began nine months prior, providing another 800-1000 volunteer hours planning and fundraising for the annual event.

In October 2022, the OA sponsored three public Candidate Forums for local elections. Residents asked candidates running for the Orinda City Council, the Moraga Orinda Fire Protection District (MOFD) and the Orinda Union School Board (OUSD) about their positions on issues concerning those governing bodies. Candidate questions were submitted in advance.

The OA Public Safety Forum filmed in 2018 with local police, fire and emergency evacuation preparedness services became the basis of the Orinda Emergency Preparedness and Evacuation Video. This video covers prevention, preparedness and response to crime, fire, emergencies, and natural disasters particular to the East Bay and is still running on Contra Costa TV.

The small office location at 26 Orinda Way provides support for public and nonprofit groups, schools, clubs, and businesses to coordinate within Orinda. Orinda Community Foundation, ONE Orinda, Rotary groups, Orinda Historical Society, Cal Shakes, Orinda Starlight Village Players, Film Festivals, Garden Clubs, Friends of Creeks, Friends of Nature Area, Tabor Sister City, JM Adobe Friends, Orinda Woman’s Club, Orinda Jr. Women’s Club, Art in Public Places, Friends of Orinda Library, Lamorinda Adult Respite Center, Farmers Market, School age volunteers, Orinda Community and City of Orinda are part of the nonprofit and service organizations network which supports our citizens.

The Orinda Association participates in donation drives and our office location in Library Plaza, next to the Community Center, serves as a central drop-off spot for local residents and organizations, and the OA websites are regularly updated.

We look forward to continuing the services provided to our homebound Orinda Seniors, planning the 4 th of July Parade
and concert, and the Orinda Classic Car Show, and reaching out to the increasing number of Orinda organizations that, like us, look for ways to make our town even better!
The Orinda Association is a 501©3 organization and our annual Form 990 is available online.

The Orinda Association
P. O. Box 97
Orinda, CA 94563
Our Tax ID: 94-6098323.

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Communication: Orinda Association Annual Report (ITEMS FOR THE GOOD OF THE CITY) City Council
Staff Report
Agenda Item: F.1
Date: May 9, 2023
Department: City Council
AGENDA TITLE: Quarterly Investment Report For Period Ending March 31, 2023 RECOMMENDATION:

Staff recommends that the City Council accept the Quarterly Investment Report for the period ending March 31, 2023.

BACKGROUND:

The adopted City Investment policy provides that the City Treasurer will submit a report of the City's investments to the Council on a quarterly basis. The policy specifies the information that is to be reported. This report covers the period from January 1, 2023 through March 31, 2023.

The City of Orinda uses Chandler Asset Management (Chandler), an independent fiduciary advisor, to manage a portion of its portfolio. The funds under management by Chandler are managed as a General Reserve. The City also uses the Local Agency Investment Fund (LAIF) which is a pooled investment managed by the State Treasurer. On a quarterly basis, Chandler prepares a report which includes City initiated transactions and balances in the City’s LAIF account. Although the LAIF funds are not managed by Chandler, including this data makes it possible to present all of the quarterly investment data in a single consolidated report.

Quarterly Report Prepared By Chandler Asset Management
The March 31, 2023 report prepared by Chandler (Attachment A) contains the following components:
1) Economic Update - provides general economic background on key indicators that may impact the investment results. This information is useful background in evaluating the performance of the portfolio as well as expected trends. (Attachment A pages 2-12).
2) Account Profile - describes the objectives and strategy used for the portfolio, compliance with the adopted investment policy, and key data related to the issuers included in the combined portfolio. This section breaks down the consolidated portfolio to provide key performance data for each sub-account: General Reserve; and LAIF. (Attachment A pages 13-27) Pages 15-16 is a table showing compliance status - General Portfolio.
3) Consolidated Information - combined portfolio characteristics for all of the subaccounts that are described in Section 1 above (General Reserve and LAIF). (Attachment A pages 28-30)
4) Portfolio Holdings - provides a detail for each security held in the portfolio including; F.1
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purchase date, maturity date, market value, and rating. The section presents the holdings grouped by each sub-account (General Reserve and LAIF). (Attachment A pages 31-38)
5) Transactions - shows all purchases, sale of holdings and maturities for each month in the quarter. (Attachment A pages 39-43)
DISCUSSION:

All of the funds in the report are in compliance with the City’s Investment Policy and the Government Code in terms of allowed investments. The comparison information provided below is based on the original cost of investments. As shown below, the City had approximately $33.8 million invested as of March 31, 2023 and it was divided between investments in the State Treasurer Local Agency Investment Fund (LAIF) and funds managed by Chandler investments.

The following table provides a comparison of balances at December 31, 2022 and March 31, 2023.

As shown above there was an increase of approximately $2.7 million from the previous quarter.

It is appropriate to keep in mind that the portfolio reflects all types of funds and is not limited to the General Fund. The City operates with a system of pooled cash which includes Restricted Funds, Debt Service Funds, Capital Project Funds, as well as General Fund. As a comparison, the total portfolio one year ago (as of March 31, 2022) was $34.3 million. The change in the portfolio balance should not be equated with the cash balance of any specific fund. The Finance Department reports information related to cash balances as part of monthly reports of disbursement.

The table below contains a more detailed view of the portfolio including the type of securities held.

CITY OF ORINDA PORTFOLIO BASED ON INVESTMENT TYPE AT COST (March 31, 2023 With Comparison To Prior Quarter)
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The mix of investments shows an decrease in Corporate Notes, Asset Backed Securities and US Agencies and a decrease in US Treasuries and LAIF. Although the attached report includes market values, the Table above provides values on a cost basis. The market value will vary both up or down from the original cost. For the most part the City tends to hold most securities until maturity, so the cost basis is more closely aligned with expected performance.

Portfolio Performance
The overall average purchase yield to maturity on the total portfolio was 2.43% which in the current environment has been increasing (Previous quarter was 1.91%). The reported purchase yield was 0.62% one year ago (Quarter ending March 31, 2022). These figures relate to the combined portfolio including both LAIF and the Reserve funds managed by Chandler. The Chandler investments are looked at separately, their average purchase yield is 1.5%, which is trending up from the prior quarter.

The following excerpt is from page 12 of Attachment A shows the increase in US Treasury Notes since 2021, and especially with the shorter term investments (dotted line is the two year Treasury which had been flat for the previous 18 months but has started increasing during quarter ending December 2021). As a reminder the City cannot invest in bonds with a maturity of more than 5 years and the Benchmark maturity guiding the portfolio selection is an average maturity of 1.84 years. As of March 31, 2023 the Reserve portfolio managed by Chandler had a slightly longer average maturity of 1.83 years.

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The current interest rate environment is expected to show continued signs of inflation due to Federal policy and world events. The important consideration for public funds in this environment is the safety of the investments. The investments owned by the City are of a high quality as required by the investment policy.

The Transaction Data included in the report displays all transactions including the settlement date. During the three-month period ending March 31, 2023, among the funds managed by Chandler there was: $731,155 in purchased securities; $0 in securities sold; and $650,000 in maturities. In the LAIF Account there was a contribution of interest, $4.5 million in deposits and $2.0 million in withdrawals.

The City also maintains liquidity using LAIF combined with shorter maturities in the Reserve portfolio to protect against the need to liquidate an investment before maturity. The portfolio will allow the City to have adequate funds to meet its cash flow requirements for the next six months.

FISCAL IMPACT:

This report is for information only. There is no fiscal impact.

ATTACHMENTS:

A. Investment Report 3rd Quarter Fiscal Year 2022-23
Respectfully Submitted by:

Doug Alessio
Administrative Services Director
Prepared By: Doug Alessio, Administrative Services Director Approved by:

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CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com

INVESTMENT REPORT
Period Ending March 31, 2023
City of Orinda
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Table of Contents As of March 31, 2023
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report

SECTION
| Section 1 | Economic Update
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Economic Update



Economic trends have been decelerating along with tighter financial conditions and restrictive monetary policy. Recent data suggests positive but below trend growth this year. Although the pace of job growth is moderating, labor markets remain solid, and the U.S. consumer has demonstrated resiliency. Market participants and the Federal Reserve are maintaining very divergent views regarding the future trajectory of monetary policy. Given the cumulative effects of tighter monetary policy and stress in the banking sector, we believe the Federal Reserve is likely near a pause in their rate hiking campaign. If moderate growth continues, we believe the Fed will likely maintain the Federal Funds rate in restrictive territory until inflationary pressures subside.

At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by

0.25% to a range of 4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening of financial conditions. The Chandler team believes the FOMC is likely near a pause in their rate hiking cycle.

In March, the yield curve inversion narrowed. The 2-year Treasury yield plummeted 79 basis points to 4.03%, the 5-year Treasury yield plunged 61 basis points to 3.58%, and the 10-year Treasury yield fell 45 basis points to 3.47%. The inversion between the 2-year Treasury yield and 10-year Treasury yield declined to -56 basis points at March month-end versus -90 basis points at February month-end. There was no spread between the 2-year Treasury and 10-year Treasury yield one year ago – the yields were approximately equal. The inversion between 3-month and 10-year Treasuries widened to -128 in March from -89 basis points in February. The shape of the yield curve indicates that the probability of recession is increasing.
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Source: US Department of Labor Source: US Department of Labor Employment
The U.S. economy added 236,000 jobs in March, and the prior two months were revised downward by 17,000. Although the pace of job growth is moderating, employment remains strong, with the three-month moving average payrolls at 345,000 and the six-month moving average at 315,000. The private sector reported broad gains, led by leisure and hospitality. The unemployment rate fell to 3.5% due to a sharp rise in the number of people employed, and the participation rate increased to 62.6% from 62.5% in February. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 6.7% from the prior month at 6.8%. Average hourly earnings rose 4.2% year-over-year in March, down from a 4.6% increase in February. Job Openings dipped to 9.9 million, the first drop below 10 million since May of 2021. While the overall pace of hiring is slowing, levels remain consistent with a solid labor market.
0 100
200
300
400
500
600
700
800
900
1,000
MOM Change In (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)

0.0%

2.0%

4.0%

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12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Source: US Department of Labor Source: US Department of Commerce Inflation
The Consumer Price Index (CPI) increased in February 0.4% month-over-month and 6.0% year-over-year, down from 6.4% in January. The Core CPI, which excludes volatile food and energy components, rose 0.5% month-over-month and 5.5% year-over-year, decelerating from 5.6% in January. Shelter costs were the primary factor in the headline CPI representing 70% of the increase. Of note, used car prices experienced a significant drop of 13.6% when compared to a year ago, the largest decline since 1960. The Personal Consumption Expenditures (PCE) index rose 5.0% year-over-year in February, improving from a 5.3% year-over-year gain in January. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 4.6% year-over-year in February, the smallest increase since October 2021. Inflationary trends are declining but remain above the Fed's 2% target.

0.0%

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7.0%

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9.0%

10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YOY( %) Change

0.0%

1.0%

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Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY( %) Change
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Advance Retail Sales fell -0.4% in February, but prior months were revised higher. Retail sales rose 5.4% year-over-year in February, versus January’s upwardly revised 7.7% year-over-year gain. The overall report exceeded expectations and points toward the resilience of the U.S. consumer. The Conference Board’s Consumer Confidence Index unexpectedly increased to 104.2 in March from 103.4 in February. While high inflation and recession concerns remain top of mind for many consumers, the strong labor market and low unemployment continue to support the strength in Consumer Confidence.

Source: US Department of Commerce Source: The Conference Board

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
80 90
100
110
120
130
140
Index Level
Consumer Confidence
Consumer
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity
The Conference Board’s Leading Economic Index (LEI) remained in negative territory for the eleventh consecutive month at -0.3% in February, unchanged from -0.3% in January. The LEI was down 6.5% year-over-year in February versus down 5.9% year-over-year in January. The consistent decline month-over-month continues to signal future contraction in the economy. The Chicago Fed National Activity Index (CFNAI) declined to -0.19 in February from +0.23 in January. On a 3-month moving average basis, the CFNAI increased to -0.13 in February from -0.27 in January, indicating a rate of growth below the historical average trend. -0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
3 Month Average
-1.0%
-0.5%

0.0%

0.5%

1.0%

1.5%
Leading Economic Indicators (LEI)
MOM ( %) Change
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Source: US Department of Commerce Source: S&P
Housing
0 200
400
600
800
1000
1200
1400
1600
1800
2000
MOM Change (In Thousands of Units)
Housing Starts
Multi Family Housing Starts
Single Family Housing Starts

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

21.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
YOY( %) Change
Total housing starts rose 9.8% month-over-month in February to 1,450,000 units and were down 18.4% compared to February 2022. Starts for both single-family and multi-family homes increased as mortgage rates declined from recent peaks. The 30-year fixed rate mortgage fell to an average of 6.24% according to Freddie Mac, down from a peak of 7.08% in October, but up from 4.67% a year ago. According to the Case-Shiller 20-City Home Price Index, the year-over-year increase continued its declining rate of gain to +2.55% in January from +4.62% in December, clearly displaying the impact of higher mortgage rates year-over-year, which have reduced demand for homebuying as affordability has declined. This is the lowest rate of annual appreciation since December 2019. 8 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Source: Institute for Supply Management Source: Federal Reserve Manufacturing
The Institute for Supply Management (ISM) manufacturing index fell to 46.3 in March from 47.7 in February. This is the fifth consecutive month of readings below 50.0, which is indicative of contraction in the manufacturing sector. All components weakened, including the headline, new orders, employment, and prices. Industrial production was flat in February after an upward revision to +0.3% in January. This equates to a -

0.25% decline from the prior year. Capacity utilization remained at 78.0% in February versus a downwardly revised 78.0% in January and has fallen below the 1972-2021 average of 79.6%.
40 42
44 46
48 50
52 54
56 58
60 62
64 66
Institute of Supply Management Purchasing Manager Index

EXPANDING

CONTRACTING
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%
Industrial Production
YOY( %) Change
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Source: US Department of Commerce Source: US Department of Commerce 3/22 6/22 9/22 12/22

0.9% 1.4% 1.5% 0.7%

1.0% -2.8% -1.8% 0.8%
-3.1% 1.2% 2.9% 0.4%
-0.4% -0.2% 0.2% 0.4%

0.0% -0.1% 0.4% 0.3%
-1.6% -0.6% 3.3% 2.6%
Federal Government Expenditures
State and Local (Consumption and Gross
Investment)
Gross Private Domestic Investment
Personal Consumption Expenditures
Components of GDP
Net Exports and Imports
Total
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
According to the third estimate, fourth quarter 2022 GDP growth was revised downward to 2.6% from 2.7%. The revision lower was primarily due to weaker growth in personal consumption expenditures and a wider trade gap in net exports. The consensus estimate calls for 1.6% growth in the first quarter and 1.0% growth for the full year 2023. 10 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Federal Reserve
Source: Federal Reserve Source: Bloomberg
At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by 0.25% to a range of

4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening in financial conditions.

Powell indicated that the extent of these effects is uncertain but speculated that tighter credit conditions could be equivalent to a rate hike or more. The Summary of Economic Projections was little changed, with the consensus target federal funds rate rising to 5.1% by the end of 2023 (implying one more quarter point hike), falling to 4.3% in 2024 (up from 4.1% previously), and declining to 3.1% by the end of 2025. No rate cuts were in the Fed’s base case for this year, contrary to the market consensus. Although projections imply policymakers are winding down interest rate hikes, the statement clearly reflected optionality for the Fed to remain data dependent. The Chandler team believes the Fed is likely near a pause in their rate hiking cycle.

0.00%

0.50%

1.00%

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3.00%

3.50%

4.00%

4.50%

5.00%
Effective Federal Funds Rate
Yield (%)
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
In $ millions
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Source: Bloomberg Source: Bloomberg

0.0%

0.5%

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1.5%

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US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

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2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Yield Curve
Mar-23
Dec-22
Mar-22
Yield (%)
Bond Yields
At the end of March, the 2-year Treasury yield was 169 basis points higher, and the 10-Year Treasury yield was about 113 basis points higher, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -56 basis points at March month-end versus -90 basis points at February month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3- month and 10-year Treasuries widened to -128 in March from -89 basis points in February. The shape of the yield curve indicates that the probability of recession is increasing.
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Section 2| SECTION | Section 2 | Account Profile
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return over a market cycle that equals or exceeds the benchmark, the ICE BofA 1-3 Year US Treasury and Agency Index.

Investment Objectives
The City of Orinda’s investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.

Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code.

As of March 31, 2023
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Compliance As of March 31, 2023
Category Standard Comment
U.S. Treasuries No limitation; Full faith and credit of the U.S. are pledged for the payment of principal and interest Complies Federal Agencies 25% max per Agency/GSE issuer; 20% max callable agency securities; Federal agencies or U.S. government-sponsored enterprises Complies
Supranational Obligations
"AA" rating category or higher by a Nationally Recognized Statistical Rating Organization ("NRSRO"); 30% maximum; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations; Issued or unconditionally guaranteed by International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB)
Complies
Municipal Securities (CA, Local Agency) "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Include obligations of the City, State of California, and any local agency within the State of California Complies Municipal Securities (Other States)
"A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Bonds of any of the other 49 states in addition to California; Including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Complies
Corporate Medium Term Notes "A" rating category or higher by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. Complies Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through Securities,
Collateralized Mortgage Obligations
"AA" rating category or better by a NRSRO; 20% maximum; 5% max per Asset-Backed or Commercial Mortgage issuer; No issuer limitation on any mortgage security where issuer is the U.S. Treasury or a Federal Agency/GSE Complies Negotiable Certificates of Deposit
(NCD)
No rating required if amount of the NCD is covered by FDIC insured limit; If above FDIC insured limit, requires "A-1" shortterm rated or "A" long-term issuer rating category or higher by a NRSRO; 30% maximum; 5% max per issuer Complies FDIC insured Time Deposits/ (Nonnegotiable CD/TD)
Amount per institution limited to the max covered under FDIC or NCUA; 20% maximum (combination of FDIC insured and collateralized TDs/ CDs); Non-Negotiable Certificates of Deposit in state or federally chartered banks, savings and loans, or credit unions;
Complies
Collateralized Time Deposits/ Nonnegotiable CD/TD)
20% maximum (combination of FDIC insured and collateralized TDs/ CDs); Non-Negotiable Certificates of Deposit in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law;
Complies
Banker’s Acceptances "A-1" short-term debt rated or higher by a NRSRO; or "A" long-term debt rating category or better by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies
Commercial Paper
"A-1" rated or higher by a NRSRO; "A" long-term rating category or higher by a NRSRO, if issuer has long-term ratings; 25% maximum; 5% max per issuer; 270 days max maturity; Issuer is a corporation organized and operating in the U.S. with assets >$500 million
Complies
City of Orinda Reserve Portfolio
Assets managed by Chandler Asset Management are in full compliance with state law and the investment policy. 15 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Compliance As of March 31, 2023
Category Standard Comment
Money Market Mutual Funds
Registered with SEC under Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria: (i) Highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience managing money market mutual funds with AUM >$500 million; 20% max combined Money Market Mutual Funds and Mutual Funds; 20% max per Money Market Mutual Fund Complies
Mutual Funds
Invest in securities as authorized under CGC, Section 53601 (a) to (k) and (m) to (q) inclusive and meet either of the following criteria: (i) Highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience investing in securities authorized by CGC, Section 53601 and with AUM >$500 million; 20% max combined Money Market Mutual Funds and Mutual Funds; 10% max per Mutual Fund Complies
Local Agency Investment Fund (LAIF) Max amount permitted by LAIF; Not used by Investment Adviser Complies Prohibited Securities
Futures and Options; Inverse floaters; Ranges notes, Interest-only strips from mortgaged backed securities; Zero interest accrual securities; Purchasing or selling securities on margin; Repurchase Agreements; Reverse Repurchase Agreements; Securities Lending; Foreign currency denominated securities Complies
Max Per Issuer No more than 5% in any single issuer, except where the issuer is the US Government, its Agencies and GSEs, Supranationals, Money Market Mutual Funds or LGIPs, or where otherwise specified in the investment policy Complies Maximum Maturity 5 years, unless the City Council has by resolution granted authority to make such an investment at least three months prior to that investment. Complies
City of Orinda Reserve Portfolio
Assets managed by Chandler Asset Management are in full compliance with state law and the investment policy. 16 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Portfolio Characteristics
City of Orinda Reserve Portfolio
03/31/23 12/31/22
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 1.83 1.83 1.81
Average Modified Duration 1.76 1.61 1.59
Average Purchase Yield n/a 1.50% 1.34%
Average Market Yield 4.20% 4.50% 4.63%
Average Quality** AAA AA/Aa1 AA/Aa1
Total Market Value 10,735,779 10,586,646
*ICE BofA 1-3 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.

As of March 31, 2023
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report City of Orinda Reserve Portfolio
Sector Distribution
ABS

6.7%
Agency

25.5%
Corporate

18.9%
Money Market
Fund

0.6%
Supranational

2.1%
US Treasury

46.1%
March 31, 2023 December 31, 2022
ABS

7.4%
Agency

25.8%
Corporate

20.3%
Money Market
Fund

0.5%
Supranational

2.1%
US Treasury

43.9%
As of March 31, 2023
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Duration Allocation As of March 31, 2023
City of Orinda Reserve Portfolio
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 03/31/23 3.8% 7.9% 22.0% 33.8% 21.5% 6.5% 4.4% 0.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years ABS
Agency
Corporate
Money Market Fund
Supranational
US Treasury
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of Orinda Reserve Portfolio ICE BofA 1-3 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 3.8% 7.9% 22.0% 33.8% 21.5% 6.5% 4.4% 0.0%
Benchmark* 0.1% 0.0% 2.8% 58.1% 39.0% 0.0% 0.0% 0.0%
*ICE BofA 1-3 Yr US Treasury & Agency Index
Duration Distribution
City of Orinda Reserve Portfolio
As of March 31, 2023
20 F.1.a
Packet Pg. 50
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Portfolio Allocation & Duration Changes
City of Orinda Reserve Portfolio
As of March 31, 2023
Benchmark: ICE BofA 1-3 Yr US Treasury & Agency Index

91.2% 91.7%

90.1%

98.4% 97.6% 100.4% 99.4% 100.3%

80.0%

85.0%

90.0%

95.0%
100.0%
105.0%
110.0%
06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 Duration as a % of the Benchmark

0.5%

2.1%

7.4%

20.3%

25.8%

43.9%

0.6%

2.1%

6.7%

18.9%

25.5%

46.1%
Money Market
Fund
Supranational
ABS
Corporate
Agency
US Treasury
Portfolio Allocation
03/31/23
12/31/22
21 F.1.a
Packet Pg. 51
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Issue Name Investment Type % Portfolio
Government of United States US Treasury 46.12%
Federal Home Loan Bank Agency 10.80%
Federal Home Loan Mortgage Corp Agency 8.14%
Federal National Mortgage Association Agency 5.00%
Federal Farm Credit Bank Agency 1.60%
Deere & Company Corporate 1.57%
Inter-American Dev Bank Supranational 1.50%
Caterpillar Inc Corporate 1.25%
Honda ABS ABS 1.21%
Apple Inc Corporate 1.17%
Northern Trust Corp Corporate 1.16%
Toronto Dominion Holdings Corporate 1.14%
Hyundai Auto Receivables ABS 1.14%
Bank of America Corp Corporate 1.14%
Target Corp Corporate 1.13%
Royal Bank of Canada Corporate 1.12%
US Bancorp Corporate 1.12%
Bank of Montreal Chicago Corporate 1.10%
Honeywell Corp Corporate 1.10%
John Deere ABS ABS 1.09%
Toyota Motor Corp Corporate 1.05%
JP Morgan Chase & Co Corporate 1.02%
Charles Schwab Corp/The Corporate 0.98%
Bank of New York Corporate 0.92%
Toyota ABS ABS 0.80%
Amazon.com Inc Corporate 0.76%
First American Govt Oblig Fund Money Market Fund 0.63%
GM Financial Automobile Leasing Trust ABS 0.62%
Intl Bank Recon and Development Supranational 0.59%
BMW Vehicle Lease Trust ABS 0.55%
Mercedes-Benz Auto Lease Trust ABS 0.46%
United Health Group Inc Corporate 0.45%
GM Financial Securitized Term Auto Trust ABS 0.44%
BMW ABS ABS 0.36%
National Rural Utilities Corporate 0.32%
State Street Bank Corporate 0.26%
Salesforce.com Inc Corporate 0.18%
Nissan ABS ABS 0.02%
TOTAL 100.00%
Issuers
City of Orinda Reserve Portfolio – Account #10296
As of March 31, 2023
22 F.1.a
Packet Pg. 52
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report AAA AA
A <A NR
03/31/23 7.2% 73.6% 17.0% 0.0% 2.2%
12/31/22 7.4% 71.6% 18.4% 0.0% 2.6%
Source: S&P Ratings
March 31, 2023 vs. December 31, 2022

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%
AAA AAA <A NR
03/31/23 12/31/22
Quality Distribution
City of Orinda Reserve Portfolio
As of March 31, 2023
23 F.1.a
Packet Pg. 53
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report -1.50%
-1.00%
-0.50%

0.00%

0.50%

1.00%

1.50%
12 months 2 years 3 years 5 years 10 years Since Inception City of Orinda Reserve Portfolio ICE BofA 1-3 Yr US Treasury & Agency Index Total Rate of Return Annualized Since Inception February 29, 2016 Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
City of Orinda Reserve Portfolio 1.44% 0.48% -1.05% -0.32% 1.34% N/A 1.10% ICE BofA 1-3 Yr US Treasury & Agency Index 1.55% 0.19% -1.33% -0.81% 1.11% N/A 0.85% Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Investment Performance
City of Orinda Reserve Portfolio
As of March 31, 2023
24 F.1.a
Packet Pg. 54
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Purchase Yield as of 03/31/23 = 1.50%

0.00 0.50

1.00 1.50

2.00 2.50
Percent (%)
Historical Average Purchase Yield
City of Orinda Reserve Portfolio
As of March 31, 2023
25 F.1.a
Packet Pg. 55
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Portfolio Characteristics
City of Orinda LAIF Portfolio
03/31/23
Portfolio
12/31/22
Portfolio
Average Maturity (yrs) 0.00 0.00
Modified Duration 0.00 0.00
Average Purchase Yield 2.88% 2.23%
Average Market Yield 2.88% 2.23%
Average Quality* NR/NR NR/NR
Total Market Value 22,733,866 20,077,443
*Portfolio is S&P and Moody’s, respectively.

As of March 31, 2023
26 F.1.a
Packet Pg. 56
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report City of Orinda LAIF Portfolio
Sector Distribution
LAIF
100.0%
March 31, 2023 December 31, 2022
LAIF
100.0%
As of March 31, 2023
27 F.1.a
Packet Pg. 57
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report

SECTION
| Section 3 | Consolidated Information
28 F.1.a
Packet Pg. 58
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Portfolio Characteristics
City of Orinda Consolidated 10296/10298
03/31/23 12/31/22
Portfolio Portfolio
Average Maturity (yrs) 0.59 0.62
Modified Duration 0.52 0.55
Average Purchase Yield 2.43% 1.91%
Average Market Yield 3.40% 3.06%
Average Quality* AA/Aa1 AA/Aa1
Total Market Value 33,469,646 30,664,089
* Portfolio is S&P and Moody’s respectively.

As of March 31, 2023
29 F.1.a
Packet Pg. 59
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report City of Orinda Consolidated 10296/10298/10528
Sector Distribution
ABS

2.1% Agency

8.2%
Corporate

6.1%
LAIF

67.9%
Money Market
Fund

0.2%
Supranational

0.7%
US Treasury

14.8%
March 31, 2023 December 31, 2022
ABS

2.6%
Agency

8.9%
Corporate

7.0%
LAIF

65.5%
Money Market
Fund

0.2%
Supranational

0.7%
US Treasury

15.1%
As of March 31, 2023
30 F.1.a
Packet Pg. 60
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report

SECTION
| Section 4
| Portfolio Holdings
31 F.1.a
Packet Pg. 61
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Holdings Report
City of Orinda Reserve Portfolio - Account #10296
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
43813RAC1 Honda Auto Receivables 2020-1 A3

1.610% Due 04/22/2024
9,446.46 02/19/2020

1.62%
9,444.61
9,445.99

99.50 5.14%
9,399.53

4.22 0.09%
(46.46)
Aaa / NR
AAA

1.06 0.14
65479JAD5 Nissan Auto Receivables Owner 2019-C A3

1.930% Due 07/15/2024
1,963.81 10/16/2019

1.94%
1,963.71
1,963.78

99.86 6.61%
1,961.06

1.68 0.02%
(2.72)
Aaa / AAA
NR

1.29 0.03
47789KAC7 John Deere Owner Trust 2020-A A3

1.100% Due 08/15/2024
2,559.79 03/04/2020

1.11%
2,559.63
2,559.74

99.57 5.28%
2,548.67

1.25 0.02%
(11.07)
Aaa / NR
AAA

1.38 0.10
36262XAC8 GM Financial Auto Lease Trust 2021-3 A2

0.390% Due 10/21/2024
68,335.51 08/10/2021

0.39%
68,334.58
68,335.20

97.98 5.51%
66,956.09

8.14 0.62%
(1,379.11)

NR / AAA
AAA

1.56 0.39
58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3

0.400% Due 11/15/2024
50,193.22 06/22/2021

0.40%
50,189.43
50,192.04

97.75 5.76%
49,063.57

8.92 0.46%
(1,128.47)

NR / AAA
AAA

1.63 0.42
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3

0.330% Due 12/26/2024
25,017.81 09/08/2021

0.34%
25,015.22
25,016.97

98.01 5.83%
24,519.33

1.38 0.23%
(497.64)
Aaa / NR
AAA

1.74 0.36
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3

1.100% Due 03/25/2025
35,000.00 01/11/2022

1.11%
34,994.77
34,997.64

97.50 5.66%
34,126.16

6.42 0.32%
(871.48)

NR / AAA
AAA

1.99 0.55
89240BAC2 Toyota Auto Receivables Owners 2021-A A3

0.260% Due 05/15/2025
54,206.28 02/02/2021

0.27%
54,196.21
54,203.17

97.46 5.57%
52,828.63

6.26 0.49%
(1,374.54)
Aaa / NR
AAA

2.13 0.48
47788UAC6 John Deere Owner Trust 2021-A A3

0.360% Due 09/15/2025
28,277.28 03/02/2021

0.37%
28,271.84
28,274.95

96.78 5.63%
27,366.70

4.52 0.25%
(908.25)
Aaa / NR
AAA

2.46 0.61
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3

0.380% Due 09/15/2025
34,277.18 04/20/2021

0.38%
34,273.58
34,275.85

97.24 5.26%
33,331.27

5.79 0.31%
(944.58)

NR / AAA
AAA

2.46 0.56
43815EAC8 Honda Auto Receivables 2021-3 A3

0.410% Due 11/18/2025
90,000.00 03/29/2022

2.50%
86,709.38
87,960.02

96.28 5.48%
86,650.74

13.33 0.81%
(1,309.28)

NR / AAA
AAA

2.64 0.73
44934KAC8 Hyundai Auto Receivables Trust 2021-B A3

0.380% Due 01/15/2026
91,808.23 07/20/2021

0.39%
91,787.96
91,798.79

96.57 5.48%
88,663.43

15.51 0.83%
(3,135.36)

NR / AAA
AAA

2.80 0.67
43815GAC3 Honda Auto Receivables Trust 2021-4 A3

0.880% Due 01/21/2026
35,000.00 11/16/2021

0.89%
34,992.62
34,995.69

95.51 5.26%
33,428.43

8.56 0.31%
(1,567.26)
Aaa / NR
AAA

2.81 1.03
47789QAC4 John Deere Owner Trust 2021-B A3

0.520% Due 03/16/2026
45,000.00 07/13/2021

0.52%
44,995.99
44,997.85

95.67 5.59%
43,049.93

10.40 0.40%
(1,947.92)
Aaa / NR
AAA

2.96 0.86
89238JAC9 Toyota Auto Receivables Trust 2021-D A3

0.710% Due 04/15/2026
35,000.00 11/09/2021

0.71%
34,999.25
34,999.57

95.33 5.42%
33,365.54

11.04 0.31%
(1,634.03)

NR / AAA
AAA

3.04 1.00
05602RAD3 BMW Vehicle Owner Trust 2022-A A3

3.210% Due 08/25/2026
40,000.00 05/10/2022

3.23%
39,997.92
39,998.50

97.71 4.90%
39,085.72

21.40 0.36%
(912.78)
Aaa / AAA
NR

3.41 1.38
362554AC1 GM Financial Securitized Term 2021-4 A3

0.680% Due 09/16/2026
25,000.00 10/13/2021

0.68%
24,999.36
24,999.63

94.86 5.77%
23,716.05

7.08 0.22%
(1,283.58)
Aaa / AAA
NR

3.47 1.02
As of March 31, 2023
32 F.1.a
Packet Pg. 62
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Holdings Report
City of Orinda Reserve Portfolio - Account #10296
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
47787JAC2 John Deere Owner Trust 2022-A A3

2.320% Due 09/16/2026
45,000.00 03/10/2022

2.34%
44,990.05
44,993.01

96.65 5.05%
43,493.90

46.40 0.41%
(1,499.11)
Aaa / NR
AAA

3.47 1.24
380146AC4 GM Financial Auto Receivables 2022-1 A3

1.260% Due 11/16/2026
25,000.00 01/11/2022

1.27%
24,997.83
24,998.61

95.01 5.68%
23,753.25

13.13 0.22%
(1,245.36)

NR / AAA
AAA

3.63 1.14
TOTAL ABS 741,085.57 1.05%
737,713.94
739,007.00 5.47%
717,308.00
195.43

6.68%
(21,699.00)
Aaa / AAA
AAA

2.54 0.73
Agency
3133834G3 FHLB Note

2.125% Due 06/09/2023
200,000.00 06/14/2019

1.93%
201,494.00
200,070.95

99.46 4.99%
198,916.00
1,322.22

1.87%
(1,154.95)
Aaa / AA+
NR

0.19 0.19
3135G05G4 FNMA Note

0.250% Due 07/10/2023
225,000.00 07/31/2020

0.24%
225,092.25
225,008.61

98.85 4.49%
222,404.18
126.56

2.07%
(2,604.43)
Aaa / AA+
AAA

0.28 0.27
3137EAEV7 FHLMC Note

0.250% Due 08/24/2023
140,000.00 08/19/2020

0.28%
139,857.20
139,981.14

98.22 4.81%
137,512.76

35.97 1.28%
(2,468.38)
Aaa / AA+
AAA

0.40 0.39
3137EAEW5 FHLMC Note

0.250% Due 09/08/2023
200,000.00 09/28/2020

0.22%
200,148.00
200,022.05

98.02 4.89%
196,036.60

31.94 1.83%
(3,985.45)
Aaa / AA+
AAA

0.44 0.43
3137EAEY1 FHLMC Note

0.125% Due 10/16/2023
170,000.00 10/14/2020

0.25%
169,365.90
169,885.34

97.54 4.78%
165,819.70

97.40 1.55%
(4,065.64)
Aaa / AA+
AAA

0.55 0.53
3137EAEZ8 FHLMC Note

0.250% Due 11/06/2023
225,000.00 11/03/2020

0.28%
224,797.50
224,959.54

97.29 4.91%
218,903.18
226.56

2.04%
(6,056.36)
Aaa / AA+
AAA

0.60 0.58
3135G06H1 FNMA Note

0.250% Due 11/27/2023
135,000.00 11/23/2020

0.29%
134,846.10
134,966.33

97.11 4.78%
131,100.93
116.25

1.22%
(3,865.40)
Aaa / AA+
AAA

0.66 0.64
3137EAFA2 FHLMC Note

0.250% Due 12/04/2023
160,000.00 12/02/2020

0.28%
159,841.60
159,964.27

96.98 4.85%
155,167.04
130.00

1.45%
(4,797.23)
Aaa / AA+
AAA

0.68 0.66
3133EMRZ7 FFCB Note

0.250% Due 02/26/2024
100,000.00 02/22/2021

0.26%
99,964.00
99,989.12

96.16 4.64%
96,160.10

24.31 0.90%
(3,829.02)
Aaa / AA+
AAA

0.91 0.88
3130A7PH2 FHLB Note

1.875% Due 03/08/2024
200,000.00 03/03/2020

0.85%
208,070.00
201,883.92

97.38 4.77%
194,759.20
239.58

1.82%
(7,124.72)
Aaa / AA+
NR

0.94 0.91
3130AJX95 FHLB Note

0.250% Due 09/13/2024
250,000.00 10/29/2020

0.29%
249,602.50
249,850.73

94.22 4.41%
235,541.25

31.25 2.19%
(14,309.48)
Aaa / AA+
NR

1.46 1.42
3130AQF40 FHLB Note

1.000% Due 12/20/2024
150,000.00 12/21/2021

1.03%
149,868.00
149,924.11

94.61 4.28%
141,914.40
420.83

1.33%
(8,009.71)
Aaa / AA+
AAA

1.73 1.67
3133ENKS8 FFCB Note

1.125% Due 01/06/2025
80,000.00 01/06/2022

1.20%
79,820.00
79,893.42

94.37 4.48%
75,496.24
212.50

0.71%
(4,397.18)
Aaa / AA+
AAA

1.77 1.71
3135G05X7 FNMA Note

0.375% Due 08/25/2025
200,000.00 03/07/2022

1.78%
190,624.00
193,504.94

91.55 4.11%
183,107.00

75.00 1.71%
(10,397.94)
Aaa / AA+
AAA

2.41 2.34
As of March 31, 2023
33 F.1.a
Packet Pg. 63
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Holdings Report
City of Orinda Reserve Portfolio - Account #10296
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3130ATUC9 FHLB Note

4.500% Due 12/12/2025
150,000.00 02/09/2023

4.25%
150,969.00
150,922.23
100.75

4.20%
151,122.90
2,775.00

1.43%
200.67
Aaa / AA+
NR

2.70 2.47
3130ATUS4 FHLB Note

4.250% Due 12/10/2027
225,000.00 02/21/2023

4.26%
224,889.75
224,892.08
101.59

3.88%
228,569.18
3,904.69

2.17%
3,677.10
Aaa / AA+
NR

4.70 4.16
TOTAL Agency 2,810,000.00 1.13%
2,809,249.80
2,805,718.78 4.57%
2,732,530.66
9,770.06

25.54%
(73,188.12)
Aaa / AA+
AAA

1.31 1.23
Corporate
037833AK6 Apple Inc Note

2.400% Due 05/03/2023
125,000.00 04/11/2019

2.70%
123,565.00
124,968.95

99.82 4.44%
124,769.88
1,233.33

1.17%
(199.07)
Aaa / AA+
NR

0.09 0.09
06406FAD5 Bank of NY Mellon Corp Callable Note Cont 6/16/2023

2.200% Due 08/16/2023
100,000.00 09/12/2019

2.15%
100,176.00
100,016.86

98.85 5.31%
98,850.00
275.00

0.92%
(1,166.86)
A1 / A
AA0.380.37
24422EVN6 John Deere Capital Corp Note

0.450% Due 01/17/2024
95,000.00 03/01/2021

0.47%
94,932.55
94,981.29

96.67 4.77%
91,837.26

87.88 0.86%
(3,144.03)
A2 / A
A+

0.80 0.77
808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024

0.750% Due 03/18/2024
110,000.00 Various

0.71%
110,138.00
110,044.56

95.19 5.96%
104,708.12

29.79 0.98%
(5,336.44)
A2 / A
A

0.97 0.93
023135BW5 Amazon.com Inc Note

0.450% Due 05/12/2024
85,000.00 05/10/2021

0.50%
84,875.90
84,953.92

95.84 4.31%
81,465.53
147.69

0.76%
(3,488.39)
A1 / AA
AA1.121.09
91324PEB4 United Health Group Inc Callable Note Cont 5/15/2022

0.550% Due 05/15/2024
50,000.00 11/08/2021

0.78%
49,713.00
49,871.68

95.38 4.83%
47,688.40
103.89

0.45%
(2,183.28)
A3 / A+
A

1.13 1.09
14913R2L0 Caterpillar Financial Service Note

0.450% Due 05/17/2024
140,000.00 05/10/2021

0.50%
139,812.40
139,929.48

95.45 4.64%
133,627.76
234.50

1.25%
(6,301.72)
A2 / A
A

1.13 1.10
24422EVQ9 John Deere Capital Corp Note

0.450% Due 06/07/2024
80,000.00 06/07/2021

0.49%
79,900.00
79,960.38

95.22 4.65%
76,176.16
114.00

0.71%
(3,784.22)
A2 / A
A+

1.19 1.15
89114QCA4 Toronto Dominion Bank Note

2.650% Due 06/12/2024
125,000.00 08/25/2021

0.61%
132,032.50
128,019.84

97.21 5.08%
121,513.00
1,002.95

1.14%
(6,506.84)
A1 / A
AA1.201.15
06367TQW3 Bank of Montreal Note

0.625% Due 07/09/2024
125,000.00 09/10/2021

0.65%
124,898.75
124,954.25

94.55 5.10%
118,189.50
177.95

1.10%
(6,764.75)
A2 / AAA1.28

1.24 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022

0.625% Due 07/15/2024
20,000.00 06/29/2021

0.64%
19,989.80
19,995.63

94.98 4.68%
18,995.76

26.39 0.18%
(999.87)
A2 / A+
NR

1.29 1.25
91159HHX1 US Bancorp Callable Note Cont 6/28/2024

2.400% Due 07/30/2024
125,000.00 12/23/2021

1.09%
129,172.50
127,145.86

96.13 5.45%
120,158.38
508.33

1.12%
(6,987.48)
A2 / A+
A+

1.33 1.28
As of March 31, 2023
34 F.1.a
Packet Pg. 64
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Holdings Report
City of Orinda Reserve Portfolio - Account #10296
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
78015K7C2 Royal Bank of Canada Note

2.250% Due 11/01/2024
125,000.00 05/19/2021

0.74%
131,411.25
127,951.21

95.64 5.15%
119,549.88
1,171.88

1.12%
(8,401.33)
A1 / A
AA1.591.51
87612EBL9 Target Corp Callable Note Cont 4/15/25

2.250% Due 04/15/2025
125,000.00 05/04/2022

3.32%
121,280.00
122,421.95

96.08 4.28%
120,094.25
1,296.88

1.13%
(2,327.70)
A2 / A
A

2.04 1.94
46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024

0.824% Due 06/01/2025
115,000.00 05/24/2021

1.93%
115,145.80
115,079.04

94.76 5.37%
108,975.27
315.87

1.02%
(6,103.77)
A1 / AAA2.17

2.08 438516CB0 Honeywell Intl Callable Note Cont 5/1/2025

1.350% Due 06/01/2025
125,000.00 03/09/2022

2.31%
121,285.00
122,502.31

93.83 4.37%
117,283.88
562.50

1.10%
(5,218.43)
A2 / A
A

2.17 2.09
63743HFE7 National Rural Utilities Note

3.450% Due 06/15/2025
35,000.00 04/27/2022

3.46%
34,990.55
34,993.31

97.36 4.72%
34,077.26
355.54

0.32%
(916.05)
A2 / AA2.21

2.07 857477BR3 State Street Bank Callable Note Cont 2/6/2025

1.746% Due 02/06/2026
30,000.00 02/02/2022

2.94%
30,000.00
30,000.00

93.89 5.25%
28,165.68

80.03 0.26%
(1,834.32)
A1 / A
AA2.861.78
06051GKM0 Bank of America Corp Callable Note Cont 4/2/2025

3.384% Due 04/02/2026
125,000.00 11/28/2022

5.85%
118,850.00
119,465.50

95.88 5.58%
119,845.13
2,103.25

1.14%
379.63
A2 / AAA3.01

1.87 89236TJK2 Toyota Motor Credit Corp Note

1.125% Due 06/18/2026
125,000.00 01/11/2023

4.55%
111,556.25
112,393.80

90.18 4.44%
112,719.88
402.34

1.05%
326.08
A1 / A+
A+

3.22 3.08
665859AW4 Northern Trust Company Callable Note Cont 4/10/2027

4.000% Due 05/10/2027
125,000.00 11/02/2022

5.02%
119,893.75
120,352.32

97.97 4.55%
122,456.75
1,958.33

1.16%
2,104.43
A2 / A+
A+

4.11 3.68
TOTAL Corporate 2,110,000.00 2.01%
2,093,619.00
2,090,002.14 4.91%
2,021,147.73
12,188.32

18.94%
(68,854.41)
A1 / A
A+

1.69 1.53
Money Market Fund
31846V203 First American Govt Obligation Fund Class Y 67,740.79 Various

4.32%
67,740.79
67,740.79

1.00 4.32%
67,740.79

0.00 0.63%

0.00 Aaa / AAA
AAA

0.00 0.00
TOTAL Money Market Fund 67,740.79 4.32%
67,740.79
67,740.79 4.32%
67,740.79

0.00 0.63%

0.00 Aaa / AAA
AAA

0.00 0.00
Supranational
459058JM6 Intl. Bank Recon & Development Note

0.250% Due 11/24/2023
65,000.00 11/17/2020

0.32%
64,860.25
64,969.75

97.16 4.75%
63,156.60

57.33 0.59%
(1,813.15)
Aaa / AAA
AAA

0.65 0.63
As of March 31, 2023
35 F.1.a
Packet Pg. 65
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Holdings Report
City of Orinda Reserve Portfolio - Account #10296
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
4581X0DZ8 Inter-American Dev Bank Note

0.500% Due 09/23/2024
170,000.00 09/15/2021

0.52%
169,874.20
169,937.90

94.54 4.36%
160,715.45

18.89 1.50%
(9,222.45)
Aaa / AAA
NR

1.48 1.44
TOTAL Supranational 235,000.00 0.47%
234,734.45
234,907.65 4.47%
223,872.05

76.22 2.09%
(11,035.60)
Aaa / AAA
AAA

1.25 1.21
US Treasury
912828T91 US Treasury Note

1.625% Due 10/31/2023
220,000.00 08/27/2020

0.20%
229,874.22
221,819.38

98.23 4.73%
216,115.68
1,501.10

2.03%
(5,703.70)
Aaa / AA+
AAA

0.59 0.57
91282CBA8 US Treasury Note

0.125% Due 12/15/2023
145,000.00 01/08/2021

0.22%
144,586.52
144,900.11

96.86 4.68%
140,451.79

53.28 1.31%
(4,448.32)
Aaa / AA+
AAA

0.71 0.69
91282CBE0 US Treasury Note

0.125% Due 01/15/2024
250,000.00 01/12/2021

0.24%
249,111.33
249,765.46

96.47 4.71%
241,172.00

65.61 2.25%
(8,593.46)
Aaa / AA+
AAA

0.79 0.77
91282CBR1 US Treasury Note

0.250% Due 03/15/2024
200,000.00 04/12/2021

0.35%
199,421.88
199,810.91

95.94 4.64%
191,882.80

23.10 1.79%
(7,928.11)
Aaa / AA+
AAA

0.96 0.93
912828X70 US Treasury Note

2.000% Due 04/30/2024
145,000.00 09/28/2020

0.18%
154,447.66
147,850.90

97.25 4.63%
141,018.16
1,217.68

1.32%
(6,832.74)
Aaa / AA+
AAA

1.08 1.04
91282CCG4 US Treasury Note

0.250% Due 06/15/2024
325,000.00 Various

0.43%
323,304.69
324,311.42

95.09 4.46%
309,054.85
238.84

2.88%
(15,256.57)
Aaa / AA+
AAA

1.21 1.18
91282CCL3 US Treasury Note

0.375% Due 07/15/2024
200,000.00 08/05/2021

0.37%
200,054.69
200,023.98

94.98 4.41%
189,968.80
157.46

1.77%
(10,055.18)
Aaa / AA+
AAA

1.29 1.26
912828YE4 US Treasury Note

1.250% Due 08/31/2024
250,000.00 10/29/2020

0.26%
259,462.89
253,498.77

95.75 4.37%
239,384.75
271.74

2.23%
(14,114.02)
Aaa / AA+
AAA

1.42 1.38
912828YM6 US Treasury Note

1.500% Due 10/31/2024
250,000.00 09/24/2021

0.55%
257,246.09
253,712.82

95.80 4.27%
239,492.25
1,574.59

2.25%
(14,220.57)
Aaa / AA+
AAA

1.59 1.53
91282CDH1 US Treasury Note

0.750% Due 11/15/2024
200,000.00 11/10/2021

0.80%
199,710.94
199,843.34

94.54 4.27%
189,070.40
567.68

1.77%
(10,772.94)
Aaa / AA+
AAA

1.63 1.58
912828Z52 US Treasury Note

1.375% Due 01/31/2025
150,000.00 02/17/2021

0.38%
155,853.52
152,723.79

95.17 4.13%
142,752.00
341.85

1.33%
(9,971.79)
Aaa / AA+
AAA

1.84 1.78
912828ZC7 US Treasury Note

1.125% Due 02/28/2025
200,000.00 02/09/2022

1.59%
197,226.56
198,259.75

94.55 4.11%
189,109.40
195.65

1.76%
(9,150.35)
Aaa / AA+
AAA

1.92 1.86
912828ZF0 US Treasury Note

0.500% Due 03/31/2025
100,000.00 04/28/2021

0.62%
99,546.88
99,769.01

93.27 4.04%
93,269.50

1.37 0.87%
(6,499.51)
Aaa / AA+
AAA

2.00 1.95
912828ZL7 US Treasury Note

0.375% Due 04/30/2025
175,000.00 01/26/2021

0.33%
175,341.80
175,167.16

92.75 4.04%
162,312.50
275.55

1.51%
(12,854.66)
Aaa / AA+
AAA

2.08 2.03
912828ZT0 US Treasury Note

0.250% Due 05/31/2025
200,000.00 10/14/2021

0.78%
196,195.31
197,726.96

92.27 4.01%
184,546.80
167.58

1.72%
(13,180.16)
Aaa / AA+
AAA

2.17 2.12
As of March 31, 2023
36 F.1.a
Packet Pg. 66
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Holdings Report
City of Orinda Reserve Portfolio - Account #10296
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CAB7 US Treasury Note

0.250% Due 07/31/2025
175,000.00 12/02/2021

1.06%
169,927.73
171,765.29

91.83 3.94%
160,706.00

72.51 1.50%
(11,059.29)
Aaa / AA+
AAA

2.34 2.29
91282CAJ0 US Treasury Note

0.250% Due 08/31/2025
200,000.00 03/22/2022

2.42%
185,765.63
190,000.84

91.61 3.93%
183,211.00

43.48 1.71%
(6,789.84)
Aaa / AA+
AAA

2.42 2.36
9128285C0 US Treasury Note

3.000% Due 09/30/2025
200,000.00 04/21/2022

2.96%
200,281.25
200,204.28

97.80 3.93%
195,601.60

16.39 1.82%
(4,602.68)
Aaa / AA+
AAA

2.50 2.38
9128285J5 US Treasury Note

3.000% Due 10/31/2025
200,000.00 06/02/2022

2.87%
200,820.31
200,621.49

97.80 3.90%
195,601.60
2,519.34

1.85%
(5,019.89)
Aaa / AA+
AAA

2.59 2.43
912828M56 US Treasury Note

2.250% Due 11/15/2025
250,000.00 06/09/2022

3.05%
243,505.86
245,033.59

95.95 3.89%
239,873.00
2,128.80

2.25%
(5,160.59)
Aaa / AA+
AAA

2.63 2.49
9128285T3 US Treasury Note

2.625% Due 12/31/2025
250,000.00 08/10/2022

3.02%
246,855.47
247,447.29

96.79 3.87%
241,963.00
1,649.69

2.27%
(5,484.29)
Aaa / AA+
AAA

2.76 2.60
9128286L9 US Treasury Note

2.250% Due 03/31/2026
150,000.00 08/17/2022

3.21%
145,113.28
145,946.24

95.64 3.80%
143,455.05

9.22 1.34%
(2,491.19)
Aaa / AA+
AAA

3.00 2.86
91282CEF4 US Treasury Note

2.500% Due 03/31/2027
225,000.00 11/28/2022

4.01%
211,587.89
212,622.20

95.51 3.72%
214,892.55

15.37 2.00%
2,270.35
Aaa / AA+
AAA

4.00 3.76
91282CEW7 US Treasury Note

3.250% Due 06/30/2027
250,000.00 10/13/2022

4.27%
239,277.34
240,308.37

98.27 3.69%
245,683.50
2,042.47

2.31%
5,375.13
Aaa / AA+
AAA

4.25 3.90
91282CFH9 US Treasury Note

3.125% Due 08/31/2027
250,000.00 01/30/2023

3.72%
243,740.23
243,961.12

97.81 3.67%
244,531.25
679.35

2.28%
570.13
Aaa / AA+
AAA

4.42 4.07
TOTAL US Treasury 5,160,000.00 1.57%
5,128,259.97
5,117,094.47 4.15%
4,935,120.23
15,829.70

46.12%
(181,974.24)
Aaa / AA+
AAA

2.13 2.02
TOTAL PORTFOLIO 11,123,826.36 1.50%
11,071,317.95
11,054,470.83 4.50%
10,697,719.46
38,059.73
100.00%
(356,751.37)
Aa1 / AA
AAA

1.83 1.61
TOTAL MARKET VALUE PLUS ACCRUALS 10,735,779.19
As of March 31, 2023
37 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Holdings Report
City of Orinda LAIF Portfolio - Account #10298
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
LAIF
90LAIF$00 Local Agency Investment Fund State Pool 22,583,394.34 Various

2.88%
22,583,394.34
22,583,394.34

1.00 2.88%
22,583,394.34
150,472.02
100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL LAIF 22,583,394.34 2.88%
22,583,394.34
22,583,394.34 2.88%
22,583,394.34
150,472.02
100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL PORTFOLIO 22,583,394.34 2.88%
22,583,394.34
22,583,394.34 2.88%
22,583,394.34
150,472.02
100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 22,733,866.36
As of March 31, 2023
38 F.1.a
Packet Pg. 68
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report

SECTION
| Section 5
| Transactions
39 F.1.a
Packet Pg. 69
Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Transaction Ledger
City of Orinda Reserve Portfolio - Account #10296
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 01/13/2023 89236TJK2 125,000.00 Toyota Motor Credit Corp Note

1.125% Due: 06/18/2026

89.245 4.55% 111,556.25 97.66 111,653.91 0.00
Purchase 02/01/2023 91282CFH9 250,000.00 US Treasury Note

3.125% Due: 08/31/2027

97.496 3.72% 243,740.23 3,323.55 247,063.78 0.00
Purchase 02/10/2023 3130ATUC9 150,000.00 FHLB Note

4.5% Due: 12/12/2025
100.646 4.25% 150,969.00 1,818.75 152,787.75 0.00
Purchase 02/23/2023 3130ATUS4 225,000.00 FHLB Note

4.25% Due: 12/10/2027

99.951 4.26% 224,889.75 2,895.31 227,785.06 0.00
Subtotal 750,000.00 731,155.23 8,135.27 739,290.50 0.00 TOTAL ACQUISITIONS 750,000.00 731,155.23 8,135.27 739,290.50 0.00

DISPOSITIONS
Maturity 01/11/2023 89236TEL5 125,000.00 Toyota Motor Credit Corp Note

2.7% Due: 01/11/2023
100.000 125,000.00 0.00 125,000.00 0.00
Maturity 02/01/2023 3133EKUA2 200,000.00 FFCB Note

1.85% Due: 02/01/2023
100.000 200,000.00 0.00 200,000.00 0.00
Maturity 02/07/2023 69371RQ41 125,000.00 Paccar Financial Corp Note

1.9% Due: 02/07/2023
100.000 125,000.00 0.00 125,000.00 0.00
Maturity 02/21/2023 3133ELNW0 200,000.00 FFCB Note

1.45% Due: 02/21/2023
100.000 200,000.00 0.00 200,000.00 0.00
Subtotal 650,000.00 650,000.00 0.00 650,000.00 0.00
TOTAL DISPOSITIONS 650,000.00 650,000.00 0.00 650,000.00 0.00 December 31, 2022 through March 31, 2023
As of March 31, 2023
40 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Transaction Ledger
City of Orinda LAIF Portfolio - Account #10298
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 01/15/2023 90LAIF$00 114,978.67 Local Agency Investment Fund State Pool 1.000 2.23% 114,978.67 0.00 114,978.67 0.00 Subtotal 114,978.67 114,978.67 0.00 114,978.67 0.00
Security
Contribution
01/06/2023 90LAIF$00 4,500,000.00 Local Agency Investment Fund State Pool 1.000 4,500,000.00 0.00 4,500,000.00 0.00 Subtotal 4,500,000.00 4,500,000.00 0.00 4,500,000.00 0.00 TOTAL ACQUISITIONS 4,614,978.67 4,614,978.67 0.00 4,614,978.67 0.00

DISPOSITIONS
Security
Withdrawal
02/14/2023 90LAIF$00 1,000,000.00 Local Agency Investment Fund State Pool 1.000 1,000,000.00 0.00 1,000,000.00 0.00 Security
Withdrawal
02/27/2023 90LAIF$00 1,000,000.00 Local Agency Investment Fund State Pool 1.000 1,000,000.00 0.00 1,000,000.00 0.00 Subtotal 2,000,000.00 2,000,000.00 0.00 2,000,000.00 0.00 TOTAL DISPOSITIONS 2,000,000.00 2,000,000.00 0.00 2,000,000.00 0.00 December 31, 2022 through March 31, 2023
As of March 31, 2023
41 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Important Disclosures
2023 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a 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 not 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 rate 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 have to 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.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.

Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.

As of March 31, 2023
42 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report Benchmark Disclosures
ICE BofA 1-3 Yr US Treasury & Agency Index
The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.

As of March 31, 2023
43 F.1.a
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Attachment: Investment Report 3rd Quarter Fiscal Year 2022-23 (3108 : Quarterly Investment Report City Council
Staff Report
Agenda Item: F.2
Date: May 9, 2023
Department:

Public Works and
Engineering Services
AGENDA TITLE: Approve Engineer's Report for the Levy of Annual Assessments; Providing Notice of Intention to Levy Annual Assessments; and Set June 6, 2023 as the date for the Hearing on the Levy of Assessments for Orinda Street Lighting and Landscaping Assessment District No. 1986-1 Zones L-42, M-9 and M-11 for Fiscal Year Ending June 30, 2024.

RECOMMENDATION:

Adopt Resolution No. 34-23, Approving the Engineer's Report for the Levy of Annual Assessments for Fiscal Year Ending June 30, 2024, Orinda Street Lighting and Landscaping Assessment District No. 1986-1, Zones L-42, M-9 and M-11 and Resolution No. 35-23, Intention to Levy and Collect Assessments for Fiscal Year Ending 2024 within the Orinda Street Lighting and Landscaping Assessment District No. 1986-1 Zones L-42,
M-9 and M-11.

BACKGROUND:

The Orinda Street Lighting and Landscape Assessment District No. 1986-1 (AD 86-1) consists of three distinct zones of benefit. These zones are former County Service Areas. Assessment District 86-1 was created upon incorporation to continue similar services. A description of each zone is shown below:
• The L-42 Zone finances the cost of residential street lighting within four neighborhoods in South Orinda. These neighborhoods are:
o Tahos Road from just north of Bates Blvd to the south cul-de-sac including Bates Court, Silverwood Court, and Oakridge Court; Meadow View Road from Meadow Lane to the north cul-de-sac
o Valley Drive from Heather Lane to south of Valley Court o Courtney Lane
o Martha Road and Catherine Court (cul-de-sac sections of both streets) • The M-9 Zone finances the cost of residential street lighting in the Orinda Downs area along the following streets:

Dalewood Drive Amber Valley Drive Sundown Terrace
Redcoach Lane Singingwood Lane Silver Oak Terrace
Coachwood Terrace Fallen Leaf Terrace Happy Valley Road • The M-11 Zone is comprised of commercial properties in the Village and Crossroads areas, and finances the cost of part or all of the following services:

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o street lighting
o street sweeping
o litter pickup
o landscape maintenance (median islands, right-of-way, and mini-parks) o water and electric utilities for landscaping (water, electrical irrigation) The service levels for this zone are reviewed on an annual basis.

An election was held in July 1999 in the District to increase assessments and provide for future adjustments to the assessments based on the annual change in the consumer price index (CPI). The increases were approved within the L-42 zone and M-9 zone, but not within the M-11 zone.

For Zones L-42 and Zone M-9 which are authorized to be adjusted the practice used by the City, is to calculate the adjustment based on the annual change in the Consumer Price Index (CPI) as reported for San Francisco-Oakland-Hayward, CA, all urban consumers. The report is published bi-monthly and the February report is used for the calculation. The Federal Bureau of Labor Statistics reported that between February 2022 and February 2023 the index increased by 5.30%.

DISCUSSION:

The City Council is required to establish the budget and levy assessments within each of the three zones of benefit annually in order to continue financing the services within the assessment district. The first step in the assessment levy process is the adoption of a resolution ordering engineering assistance in the preparation and filing of the report, which was done at the City Council Meeting of April 18, 2023. The next step is to approve the Engineer's Report (Attachment A), to declare the City's intention to levy and collect assessments and to set the date for the public hearing regarding the assessments. Adoption of Resolution No. 34-23 and No. 35-23 (Attachments B and C) will satisfy the requirements and will set the public hearing date for Zones L-42, M-9 and M-11 for June 6, 2023.

The City utilizes the firm of NBS to prepare the Engineers report and process the levy that is delivered to the Contra Costa County Tax Collector. It should be noted that Zone M-11 does not have an inflator due to majority opposition in the 1999 assessment ballot proceeding.

The subject Engineer's report establishes the proposed budgets for the next fiscal year for each zone, the estimate of actual costs for the current fiscal year and a statement regarding the basis for the assessment levy on properties. The Engineer's report also refers to several exhibits that provide background data; the original exhibits are on file in the City Clerk's office. There are no proposed changes to the district boundaries for the upcoming fiscal year.

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Section 5 of the Engineer's Report provides both projected revenues and expenses for FY 2022-23 and a proposed budget for Fiscal Year Ending June 30, 2024 for the Orinda Street Lighting and Landscaping Assessment District No. 1986-1. The types of expenditures remain consistent with the previous years. Zones L42 and M9 are projected to have a reserve balance, which is within the allowed reserve under State laws related to assessment districts. It should be noted that Zone L-42 continues to maintain a relatively high reserve. This reserve is established primarily to cover future replacement costs when a city owned street light pole within Zone L-42 requires replacement. Such poles are Caltrans Type poles of steel construction and if replaced would cost an estimated $16,000 each, depending on pole base conditions.

As shown in each of the zones the General Fund Contribution fully offsets any “general benefits,” which complies with the requirements for an assessment to only levy the costs of the special benefits. Zone M-11 operates with a significant General Fund Contribution beyond the amount required to cover the “general benefit costs”.

The amount of the General Fund contribution to Zone M11 has fluctuated from year to year as shown below:

FY 2021-22
Actual
FY 2022-23
Estimated
FY 2023-24
Proposed
General Fund $ M11 $50,006 $55,089 $51,164
NEXT STEP:

If approved by the Council, a public hearing will be held on June 6, 2023.

FISCAL IMPACT:

The proposed Fiscal Year 2023-2024 Assessments to be collected from parcels in Assessment District 86-1 (all zones) will provide $60,029 to partially offset $108,574 of costs. The General Fund will contribute $51,164 towards the costs which includes funding general benefits that cannot be funded from special assessments.

ATTACHMENTS:

A. Orinda_LMD 1986-1_EngRpt_FY 23-24
B. Resolution 34-23 Approve Engineer's Report LL 1986-1 C. Resolution 35-23 District M-9 and M-11 Intent to Assess Respectfully Submitted by:

Scott Christie
Public Works Director
Prepared By: Sheri Smith, City Clerk
Approved by:

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nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Annual Report For:

Orinda Street Lighting and Landscape
Assessment District No. 1986-1
Fiscal Year 2023/24
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
22 Orinda Way
Orinda, CA 94563
Phone - (925) 253-4200

CITY COUNCIL
Inga Miller, Mayor
Darlene K. Gee, Vice Mayor
Latika Malkani, Councilmember
Brandyn Iverson, Councilmember
Janet Riley, Councilmember

DISTRICT STAFF
David Biggs, City Manager
Douglas Alessio, Administrative Services Director
Todd Trimble, Parks & Recreation Director
Scott Christie, Public Works & Engineering Director
Sivakumar Natarajan, City Engineer
NBS
Tim Seufert, Client Services Director
Amanda Welker, Project Manager
Kyle Stock, Financial Analyst
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc)

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY .................................................................................................... 1

1.1 Summary of Assessment ........................................................................................... 1

2. OVERVIEW ...................................................................................................................... 2

2.1 Introduction ............................................................................................................... 2

2.2 Summary ................................................................................................................... 2

2.3 Effect of Proposition 218 ........................................................................................... 2

3. DESCRIPTION OF IMPROVEMENTS .................................................................................. 3

4. BOUNDARY DESCRIPTION ............................................................................................... 4

5. ESTIMATE OF COSTS ....................................................................................................... 5

5.1 Maximum Reserve ..................................................................................................... 5

5.2 Estimate of Costs ....................................................................................................... 5

6. METHOD OF APPORTIONMENT ....................................................................................... 6

6.1 Assessment Rational ................................................................................................. 6

6.2 Zones L-42 and M-9 ................................................................................................... 6

6.3 Zone M-11 ................................................................................................................. 7

6.4 General Benefit ......................................................................................................... 8

6.5 Method of Apportionment ........................................................................................ 9

6.6 Maximum Assessment ............................................................................................ 11

7. ASSESSMENT DIAGRAMS .............................................................................................. 12

8. PARCEL LISTING ............................................................................................................ 13 F.2.a
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) Orinda Street Lighting and Landscape Assessment District No. 1986-1 Annual Engineer’s Report Fiscal Year 2023/24 1

1. EXECUTIVE SUMMARY
The City of Orinda (the “City”), State of California, has directed NBS, to prepare and file a report presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained, and an estimate of the costs of the maintenance, operations, and servicing of the improvements for the Orinda Street Lighting and Landscape Assessment District No. 1986-1 (the “District”) for Fiscal Year 2023/24 pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”).

This Annual Engineer’s Report (the “Report”) includes a background of the District and an overview of the proposed assessment; diagrams of the District, showing the area and properties proposed to be assessed; a description of the general nature, location, and extent of the existing and expanded improvement; an estimate of the increased cost of maintenance for the existing and new improvements including a contribution for general benefit; the rationale utilized to assess the estimated costs of the maintenance, operations, and servicing of the improvements; and the net amount to be assessed upon all assessable lots or parcels within the District in proportion to the special benefit received.

The assessment rate and the annual rate escalation factor of the annual percentage change in the February San Francisco Bay Area Consumer Price Index were approved by property owners through the assessment balloting procedures set forth in Section 4 of Article XIIID of the California Constitution at a public hearing for Zone L-42 and Zone M-9 in July of 1999.

The following assessment is made to cover the portion of the estimated costs to pay for installation, construction, servicing, and maintenance of public lighting and landscape improvements in proportion to the special benefit received. The assessments for Fiscal Year 2023/24 have been levied in accordance with the assessment methodology as confirmed by the City Council upon the formation of the District and are proportional to the special benefit received by each parcel.

1.1 Summary of Assessment
ZONE ASSESSABLE UNITS RATE TOTAL ASSESSMENT (1)
L-42 127.50 $75.63 $9,642.83
M-9 160.00 79.61 12,737.60
M-11 59.30 635.94 37,711.64
(1) Total assessment amount to be collected for Fiscal Year 2023/24, less installment rounding.

The assessment has been levied in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation.

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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) Orinda Street Lighting and Landscape Assessment District No. 1986-1 Annual Engineer’s Report Fiscal Year 2023/24 2

2. OVERVIEW

2.1 Introduction
The maintenance of public landscaping and street lighting improvements within certain areas of the City is administered by the District. Prior to incorporation, these services were administered under former County Service Areas L-42, M-9, and M-11. These former service areas are now identified as zones within the District. Zone L-42 is comprised of residential areas with streetlights south of the freeway. Zone M-9 is the Orinda Downs residential area. Zone M-11 consists of the commercial and institutional properties in the Village and the Crossroads. The boundaries of the District include the land within the original County Service Areas plus certain parcels that were annexed to Zone M-11 in 1988. The District was formed in August of 1986 by City Council Resolutions No. 62-86, 63-86, and 64-86 for Zones M-9, M-11, and L-42, respectively, pursuant to the provisions of the Act.

This Report describes the District and the assessment per parcel for Fiscal Year 2023/24 to provide for the levy and collection of assessments sufficient to pay for the installation, construction, servicing, and maintenance of public lighting and landscape improvements within the District boundaries.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number by the Contra Costa County Assessor’s Office. The Contra Costa County Auditor/Controller uses Assessor’s Parcel Numbers and specific fund numbers to identify on the tax roll, properties assessed for special district benefit assessments.

Following consideration of public comments at a noticed public hearing, and review of the Report, the City Council may confirm the Report as submitted and may order the levy and collection of assessments for Fiscal Year 2023/24. If approved, the assessment information shall be submitted to the County Auditor/Controller and included on the property tax roll for each benefiting parcel for Fiscal Year 2023/24.

2.2 Summary
The District consists of three distinct zones, named after the former County Services Areas, which preceded them prior to incorporation, and managed as three separate accounts within the existing district.

Residential lots are presumed to benefit equally from street lighting. This benefit is considered to be special to each lot within their respective zones. Only properties with streetlights are included in the District and are assessed. In a few circumstances lots not included in the District are located directly across or adjacent to a streetlight and receive benefit. This benefit to property not located within the District is termed “general benefit.” It has been offset by a contribution from the City. Approval of this Report by the City Council is deemed to constitute approval of the transfer of the amounts stated in the estimate of costs to the assessment district fund.

2.3 Effect of Proposition 218
In each year since formation, the City Council has levied assessments within the District. Assessments in Zones L-42 and M-9 were increased pursuant to a successful Proposition 218 assessment ballot proceeding conducted in July 1999. The increase included an annual cost of living adjustment. Assessments in Zone M-11 have not been increased since 1996 due to the majority protest in the 1999 assessment ballot proceeding.

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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) Orinda Street Lighting and Landscape Assessment District No. 1986-1 Annual Engineer’s Report Fiscal Year 2023/24 3

3. DESCRIPTION OF IMPROVEMENTS
The District is intended to provide for the levy and collection of assessments sufficient to pay for the installation, construction, servicing, and maintenance of public lighting and landscape improvements within the District boundaries.

The types of activities permitted to be performed in each zone of service are as follows:

ZONE ZONE M-11
L-42 Street lighting facilities and services.

M-9 Street lighting facilities and services.

M-11
Street lighting facilities and services, street sweeping services, and park and parkway facilities and services, sidewalk repair, including but not limited to activities relating to beautification of the business area.

The plans and specifications for the improvements to be maintained include the following:
1) Street trees and landscaped areas to be maintained (Zone M-11). 2) Streetlight detail list.
3) List of streetlights to be maintained within each zone. 4) Landscape maintenance specifications and agreements. 5) 1” = 300’ scale maintenance maps.

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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) Orinda Street Lighting and Landscape Assessment District No. 1986-1 Annual Engineer’s Report Fiscal Year 2023/24 4

4. BOUNDARY DESCRIPTION
The boundaries of the District include those portions of the City formerly included under County Service Areas No. M-9, M-11, L-42, and the territory annexed to Zone M-11 as “Annexation 1988-1”.

Zone L-42 contains 128 single family residential lots. Zone M-9 includes 161 single family residential lots.

Zone M-11 includes 75 residential properties and 78 commercial and institutional properties.

For a copy of the Assessment Diagram refer to Section 7 of this Report.

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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) Orinda Street Lighting and Landscape Assessment District No. 1986-1 Annual Engineer’s Report Fiscal Year 2023/24 5

5. ESTIMATE OF COSTS
The adopted cost for Fiscal 2021/22, 2022/23 and 2023/24 for Zones L-42, M-9, and M-11 are indicated in Tables 1, 2, and 3, respectively. The total cost of the improvements in each zone has been reduced by a contribution from the City for the general benefit which is estimated to be received by property outside of the District boundaries.

5.1 Maximum Reserve
The maximum reserve permitted in any year is calculated as the annual maintenance budget necessary to maintain the improvements through December 10 of the fiscal year, or whenever the City expects to receive its apportionment of funds from Contra Costa County, plus the installment payment reserve authorized by resolution of the City Council.

5.2 Estimate of Costs
The tables on the following pages show the estimate of costs for Zones L-42, M-9, and M-11.

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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) Zone L-42 FY 2022
Actual
FY 2023
Estimated
FY 2024
Proposed
Beginning Balance $8,470 $11,804 $15,261
Revenue
Assessment Collected $8,595 $9,157 $9,643
Interest 58 30 50
General Fund Contribution 240 240 240
Total Revenue $8,893 $9,427 $9,933
Expense
Electrical $3,413 $3,200 $3,800
Assessment Engineering/County Collection 2,146 2,170 2,279 Legal, City Staff, Publishing, and Mail 600 600
Total Expense $5,559 $5,970 $6,679
Reserves- Capital Projects & Operating
Capital Improvements $7,506 $10,682 $13,694
Operating Reserves (Max. 50% Assessments) 4,298 4,579 4,821 Total Capital Improvements and Reserves $11,804 $15,261 $18,515 Surplus Available $0 $0 $0
Zone M-9 FY 2022
Actual
FY 2023
Estimated
FY 2024
Proposed
Beginning Balance $2,407 $2,198 $3,659
Revenue
Assessment Collected $11,353 $12,096 $12,738
Interest 9 5 10
General Fund Contribution 40 40 40
Total Revenue $11,402 $12,141 $12,788
Expense
Electrical $10,047 $9,000 $11,400
Assessment Engineering/County Collection 1,280 1,400 1,335 Legal, City Staff, Publishing, and Mail 284 280 285
Total Expense $11,611 $10,680 $13,020
Reserves- Capital Projects & Operating
Capital Improvements $0 $0 ($2,942)
Operating Reserves (Max 50% Assessment) 2,198 3,659 6,369 Total Capital Improvements and Reserves $2,198 $3,659 $3,427 Surplus Available $0 $0 $0
Zone M-11 FY 2022
Actual
FY 2023
Estimated
FY 2024
Proposed
Beginning Balance $0 $0 $0
Revenue
Assessment Collected $37,967 $37,711 $37,711
Interest 0 0 0
General Fund Contribution 50,006 55,089 51,164
Total Revenue $87,973 $92,800 $88,875
Expense
Electrical $23,510 $23,000 $14,500
Water 12,097 10,000 12,500
Landscape Maintenance (Contract) 49,061 40,000 42,000
Assessment Engineering/County Collection 3,305 3,200 3,250 Legal, City Staff, Publishing, and Mail 0 100 125
Street Sweeping Charges (Transfer To GF) 16,500 16,500
Total Expense $87,973 $92,800 $88,875
Reserves- Capital Projects & Operating
Capital Improvements $0 $0 $0
Operating Reserves (Max 50% Assessment) 0 0 0
Total Capital Improvements and Reserves $0 $0 $0
Surplus Available $0 $0 $0
Table 1 - ESTIMATE OF COST, ZONE L-42
Table 2 - ESTIMATE OF COST, ZONE M-9
Table 3 - ESTIMATE OF COST, ZONE M-11
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6. METHOD OF APPORTIONMENT

6.1 Assessment Rational
The improvements to be serviced and maintained by the District have been constructed for the benefit of the properties within the District and are of special benefit to the various parcels of land within the zone boundaries. They improve the quality of life on a day-to-day basis by providing an attractive, clean, safe, and secure environment in which to live and work. The relative benefits estimated to be received from the improvements by improved and unimproved use within the District are discussed in the following paragraphs.

6.2 Zones L-42 and M-9

6.2.1 SPECIAL BENEFIT
Street lighting increases security for homeowners and improves the appearance of property frontage during the hours of darkness. Street lighting also improves safety for motorists and the safety of pedestrians. It facilitates law enforcement and thereby improves property security. Security and appearance are property benefits. Traffic and pedestrian safety are related to parcel use or occupancy. The District provides funding for a minimum level of street lighting throughout Zones L-42 and M-9. Typical lighting for residential neighborhoods consists of 70-watt bulbs located at intersections and at mid-block.

The spacing of lights is approximately 500 feet.

6.2.2 APPORTIONMENT OF SPECIAL BENEFIT
The estimated special benefit received by improved residential parcels from street lighting is directly proportionate to that parcel’s lighted frontage. Street lighting is distributed uniformly throughout the zones and all parcels have essentially the same level of illumination. Parcel frontages may be seen to vary due to location, for example cul-de-sac or corner lots, and due to topography as may be seen with hillside lots. This variation in parcel frontage is seen to be of little consequence in terms of the relative benefit received by a single-family residential parcel, i.e., cul-de-sac and corner lots benefit the same from street lighting as do mid-block lots. It is reasonable to assume that each single-family residential lot receives the same benefit from street lighting, and each is assessed an equal unit of street lighting benefit.

6.2.3 OPEN SPACE AND SCENIC EASEMENTS
These parcels do not have lighted frontage paid for by the District and do not benefit from street lighting and, therefore, have not been assessed.

6.2.4 UNIMPROVED PARCELS
Unimproved parcels benefit less from lighting than improved parcels in that the former requires a reduced level of maintenance service. Mid-block lighting is standard for developed property while intersection only lights are adequate for undeveloped property. The same maintenance, however, is required for street lighting whether the property is developed or not. For example, street lighting systems unattended will require extraordinary expense to reactivate if minimum maintenance is not performed. It is concluded that for Zone L-42 and Zone M-9 the benefit received by an undeveloped or unimproved lot is half that received F.2.a
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by an improved lot.

Large undeveloped or commercial parcels within the residential zones are assigned units according to the engineer's opinion of the estimated benefits to be received. Undeveloped parcels are assigned one-half the number of units assigned to an occupied parcel. The assessment for common areas is included in the assessment for the developed lots and common areas are not assessed.

The property at 32 Broadview Terrace is not assessed as there is no public lighting on this street. The properties on Orinda View Road, Candle Terrace, Yarrow Valley Lane, and the northern (private road) segment of Dalewood Drive are not assessed as the lighting on these streets is paid for by the Homeowners' Association.

6.3 Zone M-11

6.3.1 SPECIAL BENEFIT
Street lighting increases security for businesses and improves the appearance of property frontage during the hours of darkness. Street lighting also improves safety for motorists and safety for pedestrians. Security and appearance are special benefits to property. Traffic and pedestrian safety are related to parcel use or occupancy. Increased levels of lighting are required for increased use of property.

The maintenance of landscaped areas on public streets improves the appearance of private property.

Landscaping not maintained will perish and the cost of replacement may be prohibitively expensive.

Plantings not maintained are weakened and are more vulnerable to damage from passing vehicles, exhaust, litter, and debris. Median plantings are susceptible to daily wear and tear from exposure to adjacent traffic and the greater the traffic flow the greater the exposure. Therefore, increased visibility generally requires increased levels of service. Median landscaping that is maintained contributes to a positive image in the commercial areas of the District while median landscaping that is not maintained encourages a negative image. Landscaped areas on public streets that are maintained provide benefit to nearby properties. Attractive landscaping will assist property owners with the marketing of undeveloped lots. Increased levels of maintenance are a function of parcel use.

The landscape services performed within the zone include street sweeping, litter and debris removal, medians and street trees are well distributed throughout the zone. Parcel location is not considered a factor in determining benefit.

In 1997, the Orinda Downtown Vision Task Force identified certain goals and objectives that would reflect the community values articulated in the Orinda General Plan. Street lighting, street sweeping, litter pickup, and landscaping are amenities and services that may be considered as parts of the whole for achieving the objectives and goals expressed by the Orinda Downtown Vision Task Force. These amenities, street lighting, street sweeping, litter pickup, and landscaped areas contribute to business and pedestrian friendliness as requested in the Orinda Downtown Vision Task Force Final Report, dated November 18, 1997, and revised November 19, 1997.

6.3.2 APPORTIONMENT OF SPECIAL BENEFIT
The land use in Zone M-11 is commercial, institutional, and residential. The benefit received by a parcel F.2.a
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within Zone M-11 is related to the area of that parcel and to the use of the parcel in equal proportion.

Four intensities of land use may be observed within Zone M-11. These are parcels that are undeveloped, parcels with onsite parking, parcels without onsite parking, and parcels with underground parking (Theatre Square). Parcels with parking improvements only, are treated as undeveloped parcels.

The benefit that a parcel derives from the maintenance of landscaping and lighting is proportional to the amount of building coverage or floor area ratio. Benefit factors are assigned to four land use categories as follows:

A parcel with a building and off-street parking is identified as the basic unit of assessment with a benefit factor of 1.0 unit. Undeveloped land or parcels with only parking improvements are assigned a benefit factor of 0.5 units. Parcels for which the ratio of building square footage to square footage of land exceeds

0.75 are assigned a benefit factor of 1.5 units. Parcels with underground parking are assigned a benefit factor of 2.0 units.

6.4 General Benefit

6.4.1 RESIDENTIAL STREET LIGHTING
Street lighting is of specific benefit to the fronting properties. The benefit derived by the community at large from street lighting on residential streets is negligible. There are, however, parcels immediately adjacent or opposite and not included within the District that do benefit from the streetlights paid for by Zone M-9 and Zone L-42 assessments. The benefit derived by these parcels is not assessable.

6.4.2 ZONE L-42
In 1988, at the direction of the City Council, the District Engineer prepared a study of lots in Zone L-42 that are located outside the District boundaries and adjacent or opposite to streetlights paid for by Zone L-42.

In all, 30 parcels were identified as follows:

Tahos Road, Meadow View Road, Valley Drive, Donald Drive, Cedar Lane, and Martha Road for a total of 10 lights. There are 121 lots in Zone L-42. Twenty percent is of general benefit to the lots outside of Zone L-42.

The cost to maintain these lights is therefore considered to be (0.20 x 10 x 120 = $240).

6.4.3 ZONE M-9
The light at the southern boundary of Zone M-9 on Lombardy Lane is of benefit to three lots (numbers 181, 184, and 188) on Lombardy Lane. One third of the cost to maintain this light (approximately $40) is considered to be of general benefit. The amount of the proposed contribution by the City exceeds $40 and will more than offset the described general benefit.

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6.4.4 ZONE M-11
The service and maintenance of the following items are considered to be of benefit to the general public and for owners of property located outside of the District.

DESCRIPTION ESTIMATE OF COSTS
Water $700
Maintenance of the mini park located at Camino Pablo and Brookside/Freeway off ramp 6,300
Maintenance of medians on Camino Pablo 6,000
Service and streetlights on Comino Pablo 1,500
Benefits received by Santa Maria Church and adjoining parcels 1,300 Total: $15,800
The amount of the proposed contribution by the City exceeds $15,800 and will more than offset the described general benefit. Additionally, the City contributes a proportionate share of the NPDES revenues that it receives for the properties in M-11 to the District fund. These NPDES revenues are used to offset the cost of street sweeping.

6.4.5 EXCEPTIONAL PARCELS
Exceptional parcels were identified as follows: The churches in Zone M-11, Orinda Community Church, and the First Church of Christ, were assessed $317.96 and $158.98, respectively, reflecting Council direction upon formation of the District. The parcel owned by Friends of the Library was not assessed as it is expected to revert to public ownership.

The public-school site on Altarinda Road, formerly leased to J.F.K. University, a private entity, made an annual contribution of $1,291.00 for special benefits received from District improvements. This contribution was the result of an agreement between the City, the School District and J.F.K.U. that was reached upon formation of the District in 1986. J.F.K.U. has relocated and the property has reverted to public use. Therefore, this parcel no longer contributes to the District.

In Fiscal Year 1993/94 the number of assessed units for parcels numbered 268-011-001 and 268-013-004 were reduced from 0.890 and 0.990 by 0.329 and 0.365, respectively, due to the absence of street lighting and sweeping on Bates Blvd. In Fiscal Year 2002/03, the assessed number of units for the above parcels was adjusted to include street sweeping services. The adjusted assessed units are APN 268-011-001: 0.561 to 0.643 and APN 268-013-004: 0.625 to 0.716.

6.5 Method of Apportionment
The improvements to be serviced and maintained by the District have been constructed for the benefit of the properties within the District and are of special benefit to the various parcels of land within the zone boundaries. The total estimated cost of the improvements has been divided among parcels of land within F.2.a
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the zones of the District in proportion to the estimated benefits to be received by the parcels from the improvements.

The method used by the engineer to apportion the cost among the benefiting properties follows:
1) Three zones of service have been identified on the assessment diagram. The boundaries of Zones M-9 and L-42 are identical to the boundaries of former County Service Areas M-9 and L-42. The boundary of Zone M-11 includes the parcels included in the former County Service Area M-11, plus four parcels that were annexed on May 23, 1988, as “Annexation 1988-1”. 2) The estimated operating cost within each zone of service was calculated. The total estimated incidental expense for the fiscal year was then determined for each zone.

6.5.1 ZONES L-42 AND M-9
The assessment rates in Zones L-42 and M-9 were calculated by dividing the total cost of the improvements in the zone by the total number of units within the zone. Typical single family detached residential assessments are indicated in the following table:

ZONE 2021/22 2022/23 2023/24
L-42 $68.28 $71.82 $75.63
M-9 $71.87 $75.60 $79.61
Resolution 38-99 adopted July 20, 1999, authorizes the City Council to annually adjust assessment rates in Zones L-42 and M-9 by an amount not to exceed the increase in the change in the San Francisco Bay Area Consumer Price Index (CPI) from February of the prior year to February of the current year. The change in the CPI from February 2022 to February 2023 was 5.30%.

6.5.2 ZONE M-11
Area units for a parcel are calculated by multiplying the benefit factor times the number of acres indicated in the County Assessor’s records or as may be reasonably approximated from the maps on file with the Assessor. Area units for exceptional parcels are as follows:

OWNER APN AREA UNITS
Orinda Community Church 260-200-015 0.500
First Church of Christ 260-200-019 0.250
Bates Blvd 268-011-001 0.643
Bates Blvd 268-013-004 0.716
F.2.a
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The basic area rate was calculated by dividing the net amount to be assessed in Zone M-11 by the total number of area units. The original basic area rate in Zone M-11 was calculated to be $635.94. The assessment for each parcel in M-11 was calculated by multiplying the assessed area units by $635.94.

The following table summarizes the assessment within Zone M-11 of improvement for Fiscal Year 2023/24.

Rates for Fiscal Year 2022/23 and Fiscal Year 2021/22 are also included for reference:

ZONE 2021/22 2022/23 2023/24
M-11 $635.94 $635.94 $635.94

6.6 Maximum Assessment
The following table includes, for reference, the CPI increases and maximum assessments for the prior five Fiscal Years, including Fiscal Year 2023/24:

FISCAL YEAR CPI INCREASE ZONE L-42 ZONE M-9 ZONE M-11 (1) 2019/2020 3.53% 65.32 68.76 635.94
2020/2021 2.91% 67.22 70.76 635.94
2021/2022 1.57% 68.28 71.87 635.94
2022/2023 5.19% 71.82 75.60 635.94
2023/2024 5.30% 75.63 79.61 635.94
(1) Zone M-11 does not have a CPI inflator due to majority protest in the 1999 assessment ballot proceeding.

F.2.a
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7. ASSESSMENT DIAGRAMS
The following pages provide a copy of the assessment diagrams for the District.

F.2.a
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) F.2.a
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) F.2.a
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) F.2.a
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8. PARCEL LISTING
The parcel listing of assessments is provided on the following pages. The description of each lot or parcel as part of the records of the County of Contra Costa Assessor are, by reference, part of this Report.

Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the County Assessor’s secured roll data for the applicable year in which this Report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels assessed within the District for Fiscal Year 2023/24, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this Report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

F.2.a
Packet Pg. 97
Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
Copyright © 2013 by NBS 1 of 9 04/19/2023 05:39:57PM
268-340-004-4 KOENIG PAUL M TRE & CAMRAS PATRICIA S L-42 ($0.01) $75.62 268-340-005-1 OLSON DON TRE L-42 (0.01) 75.62
268-340-008-5 MOORE JULIAN D & PROEHL SYLVIA W L-42 (0.01) 75.62 268-340-009-3 RUBIN LIOR TRE L-42 (0.01) 75.62
268-340-010-1 ISHIZU KEVIN R & KATHRYN B TRE L-42 (0.01) 75.62 268-340-011-9 GRUESSER SUSAN L-42 (0.01) 75.62
268-340-012-7 PARKER GENE F & NANCY H TRE L-42 (0.01) 75.62 268-340-013-5 LONDON BRUCE R TRE & REYNOLDS JOAN L-42 (0.01) 75.62 268-340-014-3 SHANKLAND JAMES A & LANDAU LESLIE G L-42 (0.01) 75.62 268-340-015-0 LEWIS JAMES L & RENEE D TRE L-42 (0.01) 75.62 268-340-016-8 FOSTER ANTHONY B TRE & ZAPALAC ELLEN M L-42 (0.01) 75.62 268-340-017-6 STRONG ADAM D & BRYN E C TRE L-42 (0.01) 75.62 268-340-018-4 CHRISTENSEN KYLE & ROBIN TRE L-42 (0.01) 75.62 268-340-019-2 LU ANTHONY & JESSICA RYAN L-42 (0.01) 75.62 268-340-020-0 ASCH PETER G & ESTHER TRE L-42 (0.01) 75.62 268-470-003-8 JOHANSEN GLENN & DEBORAH TRE L-42 (0.01) 75.62 268-470-004-6 NOLEN JONATHAN D TRE & NOLEN JENNIFER H L-42 (0.01) 75.62 268-470-005-3 GAN ARTHUR A TRE L-42 (0.01) 75.62
268-470-010-3 FROESE CHARLES R & MARTHA TRE L-42 (0.01) 75.62 268-470-011-1 LU FRANCES & SKJORSHAMMER CARL M L-42 (0.01) 75.62 268-470-012-9 FIOR GIANNI TRE L-42 (0.01) 75.62
268-470-013-7 WATTERS ROBERT & NADINE TRE L-42 (0.01) 75.62 268-470-014-5 KOESSEL LILY & WALLACE AARON L-42 (0.01) 75.62 268-470-015-2 MICHAS GREGORY & TYLA L-42 (0.01) 75.62
268-470-016-0 FARMER ARTHUR L JR & SUSAN TRE L-42 (0.01) 75.62 268-470-017-8 KORDASH GRANT & AMIRA L-42 (0.01) 75.62
268-470-018-6 SANJANA ESPI & VEERA E TRE L-42 (0.01) 75.62 268-470-019-4 GAVIGAN BETTYE J TRE L-42 (0.01) 75.62
268-470-020-2 ESTIS CLINTON TRE L-42 (0.01) 75.62
268-470-021-0 HARTWELL ALVIN W & MARGARET R L-42 (0.01) 75.62 268-470-023-6 ZENG JIASI & CHENG SHIYU L-42 (0.01) 75.62 268-470-024-4 LOPEZ JAVIER E & SHAKERI SHADI AMINOLOLAMA L-42 (0.01) 75.62 268-470-025-1 HESTILOW STEVAN M TRE L-42 (0.01) 75.62
268-470-029-3 MARTIS BERNARD ERNEST I TRE & GRACIAS ANGELA MARINA L-42 (0.01) 75.62 268-470-030-1 CALDAS MARIA LUISA DEOLIVEIRA & DEOLIVEIRA MANUEL DUARTE L-42 (0.01) 75.62 268-470-033-5 WU MICHAEL TRE & WATARI-WU KOREY L-42 (0.01) 75.62 268-481-001-9 MONTES LEOPOLDO & LETICIA L-42 (0.01) 75.62 268-481-002-7 MCCARTHY SEAN A & HALL LAURIE E L-42 (0.01) 75.62 268-481-004-3 MORSE BLAIRE M TRE L-42 (0.01) 75.62
268-483-002-5 PUCCINELLI ROBERT & CAROL TRE L-42 (0.01) 75.62 268-483-003-3 HAYASHI AARON K TRE L-42 (0.01) 75.62
268-483-004-1 PITT DAVID H & DENISE M TRE L-42 (0.01) 75.62 268-483-005-8 BARRETT MICHAEL & ALISON T L-42 (0.01) 75.62 268-483-006-6 PINKELMAN FRANKLIN C TRE & MEDEIROS WENDY A L-42 (0.01) 75.62 268-483-007-4 KENT PATRICK M & COURTNEY TRE L-42 (0.01) 75.62 268-483-008-2 KHAIRA JAGMOHAN & SERENA L-42 (0.01) 75.62 268-483-009-0 WANG TONY HO-HSU TRE & KAI EMILY MAN-YEE L-42 (0.01) 75.62 268-483-010-8 WALSH JOSEPH G & KATHLEEN J L-42 (0.01) 75.62 268-483-011-6 MINOWADA GEORGE TRE & MIRMIRANI PARADI L-42 (0.01) 75.62 268-483-012-4 DAVIS MICHAEL B & MARTIN JANE E L-42 (0.01) 75.62 268-483-013-2 KOOB DANIEL & JIANG NANCY L-42 (0.01) 75.62 268-483-014-0 HARDY ROBERT C & JENNIFER L L-42 (0.01) 75.62 268-483-015-7 KAMHI PHILIP & FLORENCE TRE L-42 (0.01) 75.62 F.2.a
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
Copyright © 2013 by NBS 2 of 9 04/19/2023 05:39:57PM
268-484-001-6 HANSEN DAVID C TRE L-42 (0.01) 75.62
268-484-004-0 CHIANG JOLLIN TRE L-42 (0.01) 75.62
268-484-008-1 NEFT SARI-LOIS TRE L-42 (0.01) 75.62
268-484-009-9 DESILVA DAVID E L-42 (0.01) 75.62
268-490-003-4 CHAVEZ ROCCO TRE & CHERPITEL CHERYL L-42 (0.01) 75.62 268-490-004-2 SARIN SALAISH K & SHWETA L-42 (0.01) 75.62 268-490-005-9 WILSON DANIEL B & MULLINS WARD R L-42 (0.01) 37.80 268-490-006-7 BRACE DAVID TRE & ADAMS CYNTHIA J L-42 (0.01) 75.62 268-490-007-5 JENSEN ANDREW D L-42 (0.01) 75.62
268-490-011-7 SVAHN JONATHAN D & TIFFANY TRE L-42 (0.01) 75.62 268-490-012-5 CARTER HUBERT T & MARY E L-42 (0.01) 75.62 268-490-021-6 HILLMAN ALBERT & BEVERLY TRE L-42 (0.01) 75.62 268-490-024-0 DICK JOHN MATHES TRE & HOYT VICTORIA MUNSON L-42 (0.01) 75.62 268-490-025-7 HOGG CHRISTOPHER W & WAGNER TARA L L-42 (0.01) 75.62 268-490-028-1 BERTRAND JACQUALINE L-42 (0.01) 75.62
268-490-029-9 WONG ROBERT C & MONICA B TRE L-42 (0.01) 75.62 268-501-002-3 BAGGA ATUL M & SEEMA ATUL L-42 (0.01) 75.62 268-501-003-1 LAU BRUCE & SHIRLEY T TRE L-42 (0.01) 75.62 268-501-004-9 VALEUR HAAVAR & NATALIE S TRE L-42 (0.01) 75.62 268-501-006-4 MORRIS MARK O & MARILYN TRE L-42 (0.01) 75.62 268-502-001-4 KNIEL CHRISTOPHER ROBERT TRE L-42 (0.01) 75.62 268-502-002-2 CHUANG OLIVER TRE & MUN SANDRA JANET L-42 (0.01) 75.62 268-502-003-0 WANG JUSTIN & YU MIN L-42 (0.01) 75.62
268-502-004-8 LOW PATRICIA ARLENE L-42 (0.01) 75.62
268-502-005-5 ERICKSON KEITH B & MARITA L-42 (0.01) 75.62 268-502-012-1 WORTHINGTON DANIEL W & C R TRE L-42 (0.01) 75.62 268-502-013-9 GUPTA ABHA TRE & RAGHUNATHAN VIJAY CHANDRA L-42 (0.01) 75.62 268-502-014-7 BISABRI DANIEL P & BIRANG-BISABRI GISELLE L-42 (0.01) 75.62 268-502-015-4 FRIEDMAN JACK ARNE TRE L-42 (0.01) 75.62
268-502-016-2 WILLIAMS JAMES B & SHARON TRE L-42 (0.01) 75.62 268-502-017-0 SILVERWOOD LLC L-42 (0.01) 75.62
268-502-020-4 ROTH GARY B L-42 (0.01) 75.62
268-502-021-2 DANIELS STEWART A & NANCY J L-42 (0.01) 75.62 268-502-022-0 KAWAMURA ERIC K & VERA L-42 (0.01) 75.62
269-202-065-0 HEALY MICHAEL F & WIRUM ANDREA A L-42 (0.01) 75.62 269-202-066-8 NOHR GARY A & THERESE L L-42 (0.01) 75.62 269-202-067-6 DEWALT DREW & WHITNEY MARCH L-42 (0.01) 75.62 269-202-068-4 SCHMICKER WILLIAM D & N L TRE L-42 (0.01) 75.62 269-210-012-2 HASS PETER A & MARGOT MANN TRE L-42 (0.01) 75.62 269-210-014-8 FOSTER ERIC M & LEANN M TRE L-42 (0.01) 75.62 269-210-015-5 CHINN ALICE K TRE L-42 (0.01) 75.62
269-210-020-5 BOWEN ROBERT C & ROBYN N TRE L-42 (0.01) 75.62 269-210-021-3 TARBELL HARRY III TRE L-42 (0.01) 75.62
269-210-022-1 RADLOW ANDREW D & NICOLE W TRE L-42 (0.01) 75.62 269-210-024-7 WU WILLIAM N & MARINDA TRE L-42 (0.01) 75.62 269-210-026-2 FISCHER THOMAS M & BARBARA TRE L-42 (0.01) 75.62 269-210-027-0 201904WY-LLC TRE L-42 (0.01) 75.62
269-210-028-8 BEHZADI YASHAR TRE L-42 (0.01) 75.62
269-220-001-3 AZALDE CHRISTOPHER ROBERT TRE L-42 (0.01) 75.62 269-220-002-1 DEFABIO RICHARD & LUISE TRE L-42 (0.01) 75.62 269-220-003-9 HORNSTRA CHRISTOPHER M TRE & KEELER MAX WILLIAMS L-42 (0.01) 75.62 269-220-004-7 METZNER PETER E & ALIZA TRE L-42 (0.01) 75.62 269-220-005-4 SEVERSON RALPH F & B SUE TRE L-42 (0.01) 75.62 F.2.a
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Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
Copyright © 2013 by NBS 3 of 9 04/19/2023 05:39:57PM
269-220-006-2 CLARKE DAVID P & CRISTY L-42 (0.01) 75.62 269-220-007-0 YASUDA TAKERO A & RENKO TRE L-42 (0.01) 75.62 269-230-002-9 RITCHEY KATHERINE & DAVID TRE L-42 (0.01) 75.62 269-230-003-7 SEVERSON CHRISTOPHER & PAMELA L-42 (0.01) 75.62 269-230-005-2 LU MENG & ANDERSON BARRETT CLAY L-42 (0.01) 75.62 269-230-006-0 SULLIVAN MATTHEW & JOSEPHINE L-42 (0.01) 75.62 270-400-003-9 MCMAHON JOHN F III TRE L-42 (0.01) 75.62
270-400-004-7 IRELAND JERRY M TRE & BARBOUR CORINDA M L-42 (0.01) 75.62 270-400-005-4 OSHIMA LISA MARIE & ROBERT TRE L-42 (0.01) 75.62 270-400-006-2 COLVIG TIMOTHY A & ROSEANN TRE L-42 (0.01) 75.62 270-400-007-0 KLOSTER BARBARA A TRE L-42 (0.01) 75.62
270-400-008-8 RODENS THOMAS E TRE & GERARD MARY JO L-42 (0.01) 75.62 270-400-009-6 ANDERSON DAVID & SANDRA TRE L-42 (0.01) 75.62 270-400-010-4 DAVIS COLBERT SMITH III TRE & DAVIS CHERYL COOK L-42 (0.01) 75.62 270-400-011-2 MORRIL THOMAS TODD L-42 (0.01) 75.62
270-400-012-0 HOWE TYLER T & ELVIRA A L-42 (0.01) 75.62 270-400-013-8 NGUYEN ANN TRE L-42 (0.01) 75.62
270-400-014-6 DOWD MICHAEL V & HELEN H TRE L-42 (0.01) 75.62 270-400-015-3 RISBY GREGORY M & KARLA V L-42 (0.01) 75.62 270-400-016-1 SANDMAN DANIEL S TRE & BERMAN COURTNEY SPALTER L-42 (0.01) 75.62 270-400-017-9 HICKS WILLIAM S & BETH A TRE L-42 (0.01) 75.62 270-400-018-7 HAIDINGER LISABETH K L-42 (0.01) 75.62
260-191-006-6 OPG PARTNERS LLC M-11 (0.01) 3,631.20
260-192-002-4 WELLS NEAL E & JANINE M TRE M-11 0.00 635.94 260-192-003-2 ORINDA HOLDINGS LLC M-11 0.00 635.94
260-192-004-0 ORINDA MASONIC HALL ASSN M-11 (0.01) 661.36 260-192-005-7 No Owner on Record M-11 (0.01) 693.16
260-192-008-1 KLEMMEDSON K T PROPERTIES LLC M-11 (0.01) 273.44 260-192-009-9 KLEMMEDSON M B PARTNERSHIP M-11 (0.01) 228.92 260-192-012-3 BUTZBACH THOMAS MUNRO & ATARINDA ROAD LLC M-11 0.00 585.06 260-192-013-1 ORINDA GROUP M-11 0.00 381.56
260-192-014-9 J&M ALTARINDA LLC & NAT ALTARINDA LLC M-11 (0.01) 768.84 260-200-015-6 ORINDA COMMUNITY CHURCH INC M-11 (0.01) 317.96 260-200-016-4 ORINDA SENIOR VILLAGE INC M-11 0.00 2,263.94 260-200-017-2 IRWIN WAY LIMITED PARTNERSHIP M-11 (0.01) 922.10 260-200-019-8 FIRST CHURCH OF CHRIST M-11 0.00 158.98
260-320-001-1 WELLS NEAL E & JANINE M TRE M-11 (0.01) 64.44 260-320-046-6 WELLS NEAL E & JANINE M TRE M-11 (0.01) 43.14 260-320-047-4 BISHOP JENNIFER M & BRIAN TRE M-11 0.00 35.76 260-320-048-2 WONG JOHN & MARGARIDA S & WONG ROBERT J M-11 (0.01) 34.46 260-320-049-0 MAC ROBERT TRE & CHU SUSAN M-11 0.00 31.74 260-320-050-8 MALLIDI REDDY V & JAYASREE N M-11 (0.01) 30.90 260-320-051-6 GADDE PRABHAKARA RAO TRE M-11 (0.01) 31.80 260-320-052-4 RUPPERT GREG A & MARY B M-11 0.00 31.84
260-320-053-2 PECK STEPHEN R TRE M-11 (0.01) 31.88
260-320-054-0 JONES URREA C JR & BARBARA TRE M-11 0.00 46.34 260-320-055-7 LEE CLAIRE H TRE M-11 0.00 39.00
260-320-056-5 STOKES ARVIND & BLAIRE M-11 0.00 33.44
260-320-057-3 WATERMAN STEPHEN J & ALISON J M-11 0.00 23.38 260-320-058-1 TOZLOVAN IGOR & VIORICA M-11 0.00 23.30
260-320-059-9 WONG KIM H & LAI OYE TRE M-11 (0.01) 48.34 260-320-060-7 SUN CHONGSHI M-11 (0.01) 33.68
260-320-061-5 YIM MICHAEL TRE M-11 0.00 32.18
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Packet Pg. 100 Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
Copyright © 2013 by NBS 4 of 9 04/19/2023 05:39:57PM
260-320-062-3 FECADU ADAMU & SHEAKENA LEMLEM M-11 0.00 31.86 260-320-063-1 SONG JIANLIN & DONG WEIFENG M-11 (0.01) 33.62 260-320-064-9 FLOURNOY TODD & LIA M-11 0.00 34.58
260-320-065-6 FAY DENNIS R & NATALIE H TRE M-11 (0.01) 34.58 260-320-066-4 SHUN KOANNE LONG WAI TRE & SKOWRONEK TOMASZ M M-11 0.00 32.30 260-320-067-2 CHAN SIMON Y TRE & CHE ALLY Y M-11 0.00 32.06 260-320-068-0 YU JASON M-11 0.00 33.06
260-320-069-8 MATTHEWS ROBERT & TIFFANY TRE M-11 (0.01) 31.24 260-320-070-6 JERIC BORIS JR & MELINDA C TRE M-11 0.00 37.00 260-320-071-4 LIN MICHAEL & SOYOUNG & LIN JAMES C M-11 (0.01) 31.82 260-320-072-2 CHANG CARLOS Y L & JEANETTE M-11 0.00 32.18 260-320-073-0 ANDERSON SCOTT A & HANH T M-11 (0.01) 30.20 260-320-074-8 YUN JANG H & CHUNG KRISTEN M-11 0.00 31.82 260-320-075-5 EDMISTER TODD O & JENNIFER B M-11 (0.01) 32.02 260-320-076-3 YUN CINDY S M-11 0.00 34.64
260-320-077-1 CHAN SIMON Y TRE & CHE ALLY Y M-11 0.00 39.58 260-320-078-9 DASWANI SUSHEEL & ANITA K TRE M-11 0.00 42.50 260-320-079-7 WU YIN TRE & LAN FANG M-11 0.00 45.42
260-320-080-5 LAI CHIEN A & SHIU F TRE M-11 (0.01) 52.26 260-320-081-3 WALKER LAURA L TRE M-11 0.00 30.38
260-320-082-1 SALDINGER BRUCE J TRE & ROYER LYNNE A M-11 (0.01) 36.62 260-320-083-9 CUI LONGXIANG M-11 (0.01) 35.90
260-320-084-7 ZHANG JINZHONG TRE & XI XIA M-11 0.00 32.44 260-320-085-4 LIJPHART ANNA M TRE & DOUGHERTY BRIAN P M-11 (0.01) 47.34 260-320-086-2 CHUNG KOOHONG & OUM YUMI M-11 0.00 34.80
260-320-087-0 YE MINGHUA TRE & CHEN HONG M-11 0.00 33.74 260-320-088-8 LIN LING FEN M-11 (0.01) 37.36
260-320-089-6 KNIGHT DAVID & ALISON TRE M-11 0.00 30.14 260-320-090-4 LANGE LYNETTE M-11 0.00 34.40
260-320-091-2 LIM RYAN & CHENG MELISSA M-11 0.00 32.74
260-320-092-0 KIM MIN HO & YI MIN SON M-11 (0.01) 30.60 260-320-093-8 LE NHUONG Q TRE M-11 (0.01) 35.78
260-320-094-6 SHUN KWONG LOI & WAI KUEN TRE M-11 0.00 48.86 260-320-095-3 LAI CHIEN A TRE M-11 (0.01) 42.18
260-320-096-1 CHANG BOB & CHRISTIANA M-11 0.00 30.94
260-320-097-9 JARAVATA JOHN D & GESA E M-11 (0.01) 30.32 260-320-098-7 CHIN YOLANDA M-11 0.00 30.88
260-320-099-5 IBABAO-MARLEY EMILY & MARLEY AARON M-11 0.00 23.64 260-320-100-1 MILLSTONE GLENN & LESLIE TRE M-11 0.00 23.42 260-320-101-9 PIJEWSKI WILLIAM D & DESKO MARGUERITE M M-11 0.00 31.50 260-320-102-7 HO EVAN H M-11 (0.01) 33.08
260-320-103-5 SAY PHILIP B & ONFAN J TRE M-11 (0.01) 30.06 260-320-104-3 HAMITI ARBEN M-11 0.00 22.98
260-320-105-0 RASER HEATHER RAE M-11 0.00 22.32
260-320-106-8 KARMELE ROBERT & PHYLLIS TRE M-11 0.00 33.68 260-320-107-6 HU ANDREW & JENNIFER M-11 0.00 30.74
260-320-108-4 LLOYD MARIE ELIZABETH HITZ M-11 0.00 22.94 260-320-109-2 JOCKISCH DEBRA C M-11 0.00 23.08
260-320-110-0 AGARWAL SAJAL & GOEL RITU M-11 (0.01) 35.28 260-320-111-8 LU WEI CHIH A & CHANG HSIN YUN M-11 (0.01) 34.02 260-320-112-6 HAQUE ASIF UL & OOYSHEE SAUDIA M M-11 0.00 31.20 260-320-113-4 LIN ANDREW M-11 (0.01) 32.42
260-320-114-2 LEE KYU YONG M-11 (0.01) 31.90
F.2.a
Packet Pg. 101 Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
Copyright © 2013 by NBS 5 of 9 04/19/2023 05:39:57PM
260-320-115-9 MOEEN-ZIAI JAMILEH & CARSANO DANIELE M-11 (0.01) 30.06 260-320-116-7 SOLTZ WILLIAM H & LESLIE H TRE M-11 (0.01) 30.98 260-320-117-5 SALGIA AKHIL & JAIN SEEMA M-11 0.00 32.98 262-290-006-2 LEIMKUHLER ANN TRE M-11 (0.01) 260.72
265-011-001-4 WESTFALL STEVEN & MEREDITH TRE M-11 (0.01) 61.04 265-011-002-2 GUIDOTTI JOANNA R TRE & 79-105 ASSOCIATES LLC M-11 (0.01) 667.72 265-011-007-1 GUIDOTTI JOANNA R TRE & PERETTI GENE GUY M-11 (0.01) 104.92 265-011-008-9 PHAIRS INC M-11 (0.01) 304.28
265-012-002-1 PHAIRS INC M-11 (0.01) 107.78
265-012-007-0 VILLAGE COURT ORINDA LLC M-11 0.00 333.86 265-012-010-4 BERNARDINI JACK A & SHARON TRE M-11 0.00 178.06 265-012-011-2 MOLLY BELLE PROPERTIES LP M-11 (0.01) 391.72 265-012-012-0 BERNARDINI JACK A & SHARON TRE M-11 (0.01) 109.68 265-170-005-2 29 ORINDA WAY LLC M-11 0.00 1,176.48
265-170-007-8 REID HENRY C JR & ISABEL R TRE M-11 0.00 1,030.22 265-170-009-4 ORINDA 19 LLC M-11 0.00 362.48
265-170-010-2 MYUNG & YUNG LLC M-11 (0.01) 220.66
265-170-014-4 PHILLIPS CHARLES & MARIE TRE M-11 (0.01) 429.88 265-170-018-5 MOTELS MISSION SIERRA INC M-11 0.00 519.56 265-170-021-9 MOTELS MISSION SIERRA INC M-11 0.00 133.54 265-170-022-7 ORINDA WAY LLC M-11 0.00 616.86
265-170-029-2 CHEVRON USA INC M-11 (0.01) 502.38
265-170-033-4 ORINDA VILLAGE SQUARE M-11 (0.01) 1,373.62 265-170-034-2 Z GRAND LLC M-11 (0.01) 248.00
265-170-035-9 ANABI REAL ESTATE DEVELOPMENT M-11 0.00 419.72 265-170-037-5 Z GRAND LLC M-11 (0.01) 103.96
265-170-038-3 25 ORINDA WAY LLC M-11 (0.01) 699.52
265-170-039-1 BELLA OAKS OF ORINDA LLC M-11 0.00 149.44 265-170-040-9 25 ORINDA WAY LLC M-11 0.00 181.24
265-170-042-5 DOVE GARY S & DEBORAH S TRE M-11 (0.01) 678.22 265-170-043-3 DOVE GARY S & DEBORAH S TRE M-11 0.00 81.08 265-170-044-1 DOVE GARY S & DEBORAH S TRE M-11 0.00 659.46 268-011-001-8 MOODY ROBERT J M-11 0.00 408.90
268-013-004-0 JENSEN JOANNA GUIDOTTI TRE & GUIDOTTI JOANNA R M-11 (0.01) 455.32 268-141-002-9 TRH HOLDINGS LLC M-11 0.00 199.36
268-141-003-7 MASHHOON MOHAMMAD A TRE M-11 0.00 99.20
268-141-004-5 NORTON WIGHTMAN W TRE M-11 (0.01) 207.94
268-141-005-2 DENISON KERRI TRE & DENISON KERRI SHAWN M-11 0.00 181.24 268-141-007-8 DENISON KERRI TRE & DENISON KERRI SHAWN M-11 (0.01) 34.96 268-141-016-9 GOYAK JOHN NICK TRE M-11 (0.01) 12.70
268-141-017-7 TITAN REAL EST INVESTMENTS LLC M-11 0.00 124.00 268-141-020-1 89 DAVIS LP M-11 0.00 616.86
268-142-001-0 GOYAK JOHN NICK TRE M-11 (0.01) 228.92
268-142-008-5 GOYAK JOHN NICK TRE M-11 0.00 48.64
268-142-009-3 MASHHOON HOLDINGS LP M-11 0.00 208.58
268-151-014-1 C P & R BUILDING M-11 0.00 361.84
268-163-005-5 SCHURHOFF BARBARA TRE M-11 (0.01) 238.46
268-163-006-3 TRH HOLDINGS LLC M-11 0.00 170.74
268-163-007-1 BEGUM BUSHRA TRE & IQBAL SADIA GHANI M-11 0.00 209.86 268-163-008-9 AKERAJE INC & PHOENIX 1 FUND LLC M-11 (0.01) 113.82 268-170-008-0 GUASCH MICHAEL N & MONICA TRE M-11 0.00 349.76 268-170-009-8 WONG KEVIN M TRE & ELEAZAR ISABEL M M-11 0.00 146.26 268-170-010-6 85 MORAGA LLC M-11 0.00 202.86
F.2.a
Packet Pg. 102 Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
Copyright © 2013 by NBS 6 of 9 04/19/2023 05:39:57PM
268-170-011-4 HAIST WHITNEY S & DIANE TRE M-11 (0.01) 317.96 273-010-016-7 PACIFIC GAS & ELECTRIC CO M-11 (0.01) 48.32 273-010-019-1 ORINDA DUNHILL LLC M-11 (0.01) 2,440.72
273-021-002-4 BREED PROPERTIES M-11 (0.01) 47.68
273-021-003-2 PARKER JEFFREY T TRE M-11 0.00 361.84
273-021-004-0 BREED PROPERTIES M-11 (0.01) 228.92
273-021-005-7 BREED PROPERTIES M-11 0.00 419.08
273-021-009-9 BREED PROPERTIES M-11 0.00 215.58
273-021-010-7 BREED PROPERTIES M-11 (0.01) 57.22
273-022-001-5 PACIFIC GAS & ELECTRIC CO M-11 0.00 8.58
273-030-002-3 FIATARONE MARIE LOUISE TRE M-11 0.00 165.34 273-041-002-0 SUTTER BAY MEDICAL FOUNDATION M-11 0.00 629.58 273-041-009-5 BROOKWOOD PROPERTIES M-11 (0.01) 693.16
273-041-010-3 ALLEN & ASSOCIATES M-11 0.00 578.70
273-042-011-0 SUTTER EAST BAY MED FOUNDATION M-11 0.00 87.44 273-042-012-8 No Owner on Record M-11 0.00 46.74
266-291-001-3 ESOPA JOHN R & JILLIAN A TRE M-9 (0.01) 79.60 266-291-002-1 VAUGHT LEWIS R TRE M-9 (0.01) 79.60
266-291-003-9 COLMAN RICHARD S TRE M-9 (0.01) 79.60
266-291-004-7 WALBURG ALVIN L & MARIJANE M-9 (0.01) 79.60 266-291-005-4 LIN PATRICK C & DARLET M TRE M-9 (0.01) 79.60 266-291-006-2 AOKI TIMOTHY & MIHO M-9 (0.01) 79.60
266-291-009-6 PRITCHARD GREGORY & LISA M M-9 (0.01) 79.60 266-291-010-4 MCINTYRE PETER A & P GAIL TRE M-9 (0.01) 79.60 266-291-011-2 GAFFNEY BRIAN J & SHANNON TRE M-9 (0.01) 79.60 266-291-012-0 HERRIN JACQUELINE TRE & SCHMAUTZ STEPHANIE A H M-9 (0.01) 79.60 266-291-015-3 PARKER ROBERT P & YACHIEN TRE M-9 (0.01) 79.60 266-291-017-9 URE HERBERT J & ELMA N TRE M-9 (0.01) 79.60 266-291-018-7 PADDOCK STEPHEN P TRE M-9 (0.01) 79.60
266-291-019-5 LIU EDWARD H & IDA H TRE M-9 (0.01) 79.60 266-291-020-3 INGLEBY GAREN S & VALERIE A M-9 (0.01) 79.60 266-291-021-1 SINGSANK ROBERT J TRE & LUCAS JOAN A M-9 (0.01) 79.60 266-291-023-7 PARASKAKIS EMMANUEL & GAVRIILOGLOU CHRISTINA M-9 (0.01) 79.60 266-292-001-2 BERG STEVEN TRE & KINNEY CLAIRE M-9 (0.01) 79.60 266-292-002-0 DEBENHAM NANCY L TRE M-9 (0.01) 79.60
266-292-003-8 CHEN IRENE S TRE M-9 (0.01) 79.60
266-292-004-6 ANDERSON CHRISTOPHER P & DIXIE M-9 (0.01) 79.60 266-292-005-3 LAMISON ERIC & LAURA B TRE M-9 (0.01) 79.60 266-292-006-1 ROEBUCK JOAN E TRE M-9 (0.01) 79.60
266-292-007-9 CLEVELAND MICHAEL G TRE M-9 (0.01) 79.60
266-292-008-7 REYNOLDS PETER & CHRISTINA M-9 (0.01) 79.60 266-293-001-1 BERTA MICHAEL A JR TRE M-9 (0.01) 79.60
266-301-001-1 BEVEGNI STEPHANIE & ROBERT TRE M-9 (0.01) 79.60 266-301-002-9 WILLIAMS BARRY J & CASSIE P M-9 (0.01) 79.60 266-302-001-0 KLAMM LINDA E & PAVLIK RUDY S M-9 (0.01) 79.60 266-302-004-4 MADNICK SETH BAKER TRE & ROSS-MADNICK NANCY G M-9 (0.01) 79.60 266-302-005-1 MARVIN THOMAS R & NANCY V M-9 (0.01) 79.60 266-302-006-9 DAVALOS STEPHEN & MICHELLE TRE M-9 (0.01) 79.60 266-302-007-7 BOYLE DAVID F & ELIZABETH TRE M-9 (0.01) 79.60 266-302-008-5 BEAGLE CHRISTOPHER A TRE M-9 (0.01) 79.60 266-302-009-3 YELLOW BRICK GROUP LLLP M-9 (0.01) 79.60
266-302-010-1 MORRISON JODY POOR TRE M-9 (0.01) 79.60
266-303-001-9 FINEFROCK JAMES ALAN TRE & HAMLIN HARRIET L M-9 (0.01) 79.60 F.2.a
Packet Pg. 103 Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
Copyright © 2013 by NBS 7 of 9 04/19/2023 05:39:57PM
266-303-002-7 SAADATI OMID & MAHSA NAJI M-9 (0.01) 79.60 266-303-003-5 MCGEE MAHLON R M-9 (0.01) 79.60
266-304-003-4 GOULD ALAN C & ARLENE L TRE M-9 (0.01) 79.60 266-304-004-2 PACKER JOEL & NICOLE M-9 (0.01) 79.60
266-304-005-9 SOMMER GREGORY SCOTT & NICOLE M-9 (0.01) 79.60 266-304-006-7 BROWNE LAWRENCE WALDEN II TRE M-9 (0.01) 79.60 266-304-007-5 PAWLOWSKI KAMIL BOLESLAW & YUEN NANCY PUI YEE M-9 (0.01) 79.60 266-304-008-3 JONSSON MAGNUS O & BETHANY A M-9 (0.01) 79.60 266-304-009-1 CARLSON ROGER S & BARBARA TRE M-9 (0.01) 79.60 266-304-010-9 MACDONALD STEPHEN & REBECCA M-9 (0.01) 79.60 266-304-011-7 STENOVEC P ANDREW TRE M-9 (0.01) 79.60
266-304-015-8 DENMA TSERING WANGCHUK & CHAGZOETSANG YANGCHEN LHAMO M-9 (0.01) 79.60 266-304-016-6 MEHTA RAKESH TRE M-9 (0.01) 79.60
266-310-001-0 AU JOSEPH T & FAN F TRE M-9 (0.01) 79.60
266-310-002-8 WAGNER CLAUDE A TRE & LIU JING M-9 (0.01) 79.60 266-310-003-6 MEREDITH MARK & NICOLE M-9 (0.01) 79.60
266-310-004-4 FERNBACHER JOHN PHILIP TRE M-9 (0.01) 79.60 266-310-005-1 JENKINS JAMES & ELIZABETH TRE & JENKINS JAMES C M-9 (0.01) 79.60 266-310-006-9 ZOVICKIAN JOHN G TRE M-9 (0.01) 79.60
266-310-007-7 THOMPSON WILLIAM N TRE M-9 (0.01) 79.60
266-310-008-5 TANG GORDON TRE & ARCIAGA MELISSA M-9 (0.01) 79.60 266-310-009-3 STEIN DEREK TRE M-9 (0.01) 79.60
266-310-011-9 SHARIF-HASSANABADI MARYAM & MOMENI OMEED M-9 (0.01) 79.60 266-310-012-7 VALENTINE ROELOF & CHANTAL S M-9 (0.01) 79.60 266-310-013-5 THOMPSON ROBERT & VIRGINIA J M-9 (0.01) 79.60 266-310-014-3 AUJLA SANDEEP SINGH & AMAR P M-9 (0.01) 79.60 266-310-015-0 BRUNETTI CHRISTOPER G & KIM JOANNA H M-9 (0.01) 79.60 266-310-016-8 JOHNSON CAROLYN A TRE M-9 (0.01) 79.60
266-310-017-6 ROGIN ALTXANDER M TRE M-9 (0.01) 79.60
266-310-018-4 BRADY KIERAN E & STEPHANIE O M-9 (0.01) 79.60 266-310-019-2 PAULSON THOMAS G II TRE M-9 (0.01) 79.60
266-310-020-0 CORTNER CHRISTOPHER & WEI DANIEL M-9 (0.01) 79.60 266-310-021-8 CLOIDT JOSEPH & JACQUELINE TRE M-9 (0.01) 79.60 266-310-022-6 DESILVA PATRICIA D M-9 (0.01) 79.60
266-310-023-4 YOUNG THOMAS J & HEATHER K TRE M-9 (0.01) 79.60 266-310-024-2 MUNAJED AMAL & RAEES MUHAMMAD M-9 (0.01) 79.60 266-310-025-9 CORBITT R STEVEN & LEXIE TRE M-9 (0.01) 79.60 266-310-026-7 FEUSI URSULA TRE M-9 (0.01) 79.60
266-310-027-5 MCWHORTER MICHAEL C & JANE TRE M-9 (0.01) 79.60 266-310-028-3 LYNN CAROLE KAY TRE M-9 (0.01) 79.60
266-321-002-5 SILVER RICHARD & LINDA TRE M-9 (0.01) 79.60 266-321-003-3 EGGERS WILLIAM H & JOAN Z TRE M-9 (0.01) 79.60 266-321-004-1 SOUTHWICK TIMOTHY & SUSAN TRE M-9 (0.01) 79.60 266-321-005-8 WECHT SUSAN B & RONALD H TRE M-9 (0.01) 79.60 266-321-006-6 SCHOU ROLF H & MAYANN T TRE M-9 (0.01) 79.60 266-321-010-8 MOSELLEN CHRISTOPHER M TRE M-9 (0.01) 79.60 266-322-001-6 NAPOLITAN NICHOLAS & ANQI TRE M-9 (0.01) 79.60 266-322-002-4 SOUISSI ZIED TRE M-9 (0.01) 79.60
266-322-003-2 HEIMER SHARON K M-9 (0.01) 79.60
266-322-004-0 PERRY PHILIP W & JULIE B TRE M-9 (0.01) 79.60 266-322-005-7 SIAMAS JOHN S TRE M-9 (0.01) 79.60
266-322-006-5 SIMMONDS MARK C & SHAUNA T M-9 (0.01) 79.60 266-331-001-5 EVERSOLE SCOTT S & FLANAGAN SHEILA M-9 (0.01) 79.60 F.2.a
Packet Pg. 104 Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
266-331-002-3 MARQUIS GEORGE L TRE M-9 (0.01) 79.60
266-331-003-1 MOON WILLIAM J & ANN W TRE M-9 (0.01) 79.60 266-331-004-9 BITZER JAMES A & KELLY H TRE M-9 (0.01) 79.60 266-331-005-6 GEORGIOU CHRISTOPHER TRE & GEROGIOU MARIA M-9 (0.01) 79.60 266-331-006-4 MCGONIGLE JOHN & SANDRA TRE M-9 (0.01) 79.60 266-332-002-2 LI HAO & XU KELI M-9 (0.01) 79.60
266-332-003-0 KREUTZELMAN MICHAEL G TRE & BOSTER BARBARA A M-9 (0.01) 79.60 266-332-004-8 PATEL NEILESH S & DHRUPTI TRE M-9 (0.01) 79.60 266-332-007-1 KENNEDY DONALD S & DIANA R M-9 (0.01) 79.60 266-332-008-9 ARNON JOYCE M TRE M-9 (0.01) 79.60
266-332-009-7 ROETHE JAMES N & NITA D TRE M-9 (0.01) 79.60 266-332-010-5 GOODE JOHN G TRE & CROCE-GOODE PAMELA F M-9 (0.01) 79.60 266-332-011-3 VANHORN JEFFREY B & MARY M-9 (0.01) 79.60 266-332-012-1 ELIAS AKIVA E & LEENA M-9 (0.01) 79.60
266-332-013-9 HERRERO DALE B & JILL C M-9 (0.01) 79.60
266-332-014-7 SERNETT LISA L TRE M-9 (0.01) 79.60
266-332-015-4 GOLDSTEIN ROBERT TRE M-9 (0.01) 79.60
266-332-016-2 KLEIN DANIEL L TRE M-9 (0.01) 79.60
266-332-017-0 BRAVO-FERRER MANUELA TRE M-9 (0.01) 79.60 266-332-018-8 CHANG HUNG & JING M-9 (0.01) 79.60
266-340-001-4 OSTRACH MICHAEL S & KAREN TRE M-9 (0.01) 79.60 266-340-002-2 CANNIZZO CRAIG J TRE & PAGE ALLISON M-9 (0.01) 79.60 266-340-003-0 MEDEIROS SCOTT A & LUCIA LORI E M-9 0.00 39.80 266-340-004-8 LINDERMAN MARK & NANETTE TRE M-9 (0.01) 79.60 266-340-005-5 MARCHETTI JAMES & CAROLYN TRE M-9 (0.01) 79.60 266-340-006-3 NAN ALLEN & LISA TRE M-9 (0.01) 79.60
266-340-007-1 WOODBERRY ALAN S & MOLLY A TRE M-9 (0.01) 79.60 266-340-008-9 OLEARY TAMMY M-9 (0.01) 79.60
266-340-009-7 PITT PAUL & CHRISTINE TRE M-9 (0.01) 79.60 266-340-010-5 SCHULTZ LORI M-9 (0.01) 79.60
266-340-011-3 CHOU LEI-CHING & HWANG ALEXANDER M-9 (0.01) 79.60 266-340-012-1 LUNDQUIST CHRISTIAN H & LUNDQUIST CYNTHIA I M-9 (0.01) 79.60 266-340-013-9 HINDES F SCOTT TRE & KAELLE JOHN A & JODI C M-9 (0.01) 79.60 266-340-014-7 MCMANIS JAMES & DENA M-9 (0.01) 79.60
266-340-015-4 GLICKMAN RICHARD B & MARILYN D M-9 0.00 39.80 266-340-016-2 GLICKMAN RICHARD B & MARILYN M-9 (0.01) 79.60 266-340-017-0 SUBA LOUIS & BERIT M-9 (0.01) 79.60
266-340-018-8 SORENSON ROBERT L TRE M-9 (0.01) 79.60
266-351-001-0 FORMANEK ROBERT JR & JANET TRE M-9 (0.01) 79.60 266-351-002-8 DALTON WESLEY R & KRISTEN TRE M-9 (0.01) 79.60 266-351-003-6 GLICK MARTIN R & BEVERLY L TRE M-9 (0.01) 79.60 266-351-004-4 PIETRYKOWSKI MICHAEL J TRE & PIETRYKOSWKI SUZANNE E M-9 (0.01) 79.60 266-351-005-1 STAMM FREDERICK J TRE M-9 (0.01) 79.60
266-352-001-9 WILLIAMS RANDY & MAILE TRE M-9 (0.01) 79.60 266-352-002-7 SPURLOCK DAVID & AMY M-9 (0.01) 79.60
266-352-003-5 OTOOLE TERRY & KATHRYN TRE M-9 (0.01) 79.60 266-352-004-3 DELAHAYE JOHN & ELIZABETH TRE M-9 (0.01) 79.60 266-352-005-0 GOHLER CLAUDIA P TRE M-9 (0.01) 79.60
266-352-006-8 HILL ANTHONY RUSSELL TRE M-9 (0.01) 79.60 266-353-001-8 REARDON MARK C & ELIZABETH K M-9 (0.01) 79.60 266-353-002-6 BITTON DANIEL S TRE & PECH-BITTON BRENDA M-9 (0.01) 79.60 266-353-003-4 AIKEN TODD TROY TRE & MCMAHON MARY PATRICIA M-9 (0.01) 79.60 266-353-006-7 OLLE SCOTT H & LISA D TRE M-9 (0.01) 79.60 Copyright © 2013 by NBS 8 of 9 04/19/2023 05:39:57PM
F.2.a
Packet Pg. 105 Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) City of Orinda
Street Lighting and Landscaping District 1986-1
Final Billing Detail Report for Fiscal Year 2023/24
APN Owner Zone
Rounding
Adjustment Total Levy
266-353-007-5 KOGAN MARK H & PATRICIA M TRE M-9 (0.01) 79.60 266-353-008-3 WOLFSEN BRADLEY & NATALIE TRE M-9 (0.01) 79.60 266-353-009-1 BONAR ROBERT G M-9 (0.01) 79.60
266-353-010-9 LUN PAUL & CHRISTINE L TRE M-9 (0.01) 79.60 266-353-011-7 GONG HENRY & VALERIE TRE M-9 (0.01) 79.60 365-430-002-3 KHALIL A SAYED & MIRZETA TRE M-9 (0.01) 79.60 365-430-013-0 SCHIMBOR PATRICIA SHULER TRE M-9 (0.01) 79.60 365-440-022-9 HASEGAWA TEPPEI B TRE & TRAN LINH M-9 (0.01) 79.60 365-440-023-7 PIKE EDWARD D III TRE & CARPENTER-PIKE NANCY JO M-9 (0.01) 79.60 365-440-036-9 LEE BAILEY TRE & LUM SUSAN M-9 (0.01) 79.60 365-440-037-7 AHMADY YUNOS & STOTHERS SARA M-9 (0.01) 79.60 365-450-001-0 HAPPY VALLEY ROAD LLC M-9 (0.01) 79.60
365-450-002-8 HAPPY VALLEY ROAD LLC M-9 (0.01) 79.60
365-450-003-6 ANTHONY JAMES P & KRISTINE TRE M-9 (0.01) 79.60 365-450-004-4 LUSKEY RANDALL & ELIZABETH TRE M-9 (0.01) 79.60 365-450-005-1 LALLI STEPHEN & KIMBERLY J M-9 (0.01) 79.60 365-450-006-9 HOUSEWORTH COURT H TRE & SCHLINKERT JOANNE F M-9 (0.01) 79.60 365-450-007-7 JACUZZI ROY A & DEEANN TRE M-9 (0.01) 79.60 (3.56) 60,089.18 442 Accounts
442 Total Accounts ($3.56) $60,089.18
Slight variances may occur due to rounding
Copyright © 2013 by NBS 9 of 9 04/19/2023 05:39:57PM
F.2.a
Packet Pg. 106 Attachment: Orinda_LMD 1986-1_EngRpt_FY 23-24 (3106 : LL District 1986-1 2nd meeting Resos etc) Resolution No. 34-23

BEFORE THE CITY COUNCIL OF THE CITY OF ORINDA
In the Matter of:

Approving the Engineer’s Report for )
The Levy of Annual Assessments )
For Fiscal Year 2024, Orinda Street ) Resolution No. 34-23 Lighting and Landscape Assessment )
District No. 1986-1, Zones L-42, M-9 )
and M-11 )
WHEREAS, the Orinda City Council previously formed an assessment district under the Landscape and Lighting Act of 1972 (Streets and Highways Code, Part 2, Division 15, Section 22500 and following); and,
WHEREAS, the district was designated the “Orinda Street Lighting and Landscape Assessment District No. 1986-1,” and replaced the former County Service Areas L-42, M-9, and M-11; and
WHEREAS, the Assessment District contains three zones: L-42, M-9, and M-11; and WHEREAS, the description of improvements, estimate of costs, method of assessment, assessment roll and assessment diagram for each zone are set forth in detail in the Engineer's Report; and
WHEREAS, the improvements and services of the Assessment District which will be performed in each zone are as follows:

Zone Description
L-42 Street lighting facilities and services
M-9 Street lighting facilities and services.

M-11 Street lighting facilities and services, street
sweeping services, park and parkway facilities
and services, sidewalk repair, including but not
limited to the beautification of the business area.

WHEREAS, it is necessary to undertake proceedings under the provisions of the Streets and Highways Code for the levy and collection of assessments for the Fiscal Year 2024 within the existing Assessment District; and
WHEREAS, this Council has determined that it is necessary to continue building reserves in District L-42 in the event a city owned street light pole requires replacement; and F.2.b
Packet Pg. 107 Attachment: Resolution 34-23 Approve Engineer's Report LL 1986-1 (3106 : LL District 1986-1 2nd meeting Resos etc) Resolution No. 34-23

WHEREAS, this Council has determined to proceed to levy an annual assessment and did on April 18, 2023, order the Engineer to prepare and file a report in accordance with the Landscaping and Lighting Act of 1972; and
WHEREAS, on May 4, 2023, the Engineer filed his report with the City Clerk for submission to this Council and the City Manager has submitted the report to this Council for consideration.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Orinda does hereby find that the report prepared and filed by the Engineer on May 4, 2023, contains all the elements required for such reports by the Landscaping and Lighting Act of 1972, including (1) an estimate of the annual costs of the improvements, (2) a diagram of the Assessment District and (3) an assessment of the estimated annual costs of the improvements.

Adopted by the City Council of the City of Orinda at a regular meeting on May 9, 2023, by the following vote:

AYES: COUNCILMEMBERS:

RECUSED: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Inga Miller, Mayor
ATTEST:

Sheri Marie Smith, City Clerk
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Packet Pg. 108 Attachment: Resolution 34-23 Approve Engineer's Report LL 1986-1 (3106 : LL District 1986-1 2nd meeting Resos etc) Resolution No. 35-23

BEFORE THE CITY COUNCIL OF THE CITY OF ORINDA
In the Matter of:

Intention to levy and collect )
Assessments for Fiscal Year 2024 )
Within the Orinda Street Lighting ) Resolution No. 35-23 And Landscape Assessment District )
No. 1986-1, Zones L-42, M-9 and )
M-11 )
WHEREAS, the Orinda City Council previously formed an assessment district under the Landscape and Lighting Act of 1972 (Streets and Highways Code, Part 2, Division 15, Section 22500 and following); and
WHEREAS, the district was designated the “Orinda Street Lighting and Landscape Assessment District No. 1986-1,” and replaced the former County Service Areas L-42, M-9, and M-11; and
WHEREAS, the Assessment District contains three zones: L-42, M-9 and M-11; and WHEREAS, the description of improvements, estimate of costs, method of assessment, assessment roll and assessment diagram for each zone are set forth in detail in the Engineer's Report; and
WHEREAS, it is necessary to undertake proceedings under Streets & Highways Code for the levy and collection of assessments for the Fiscal Year 2024 within the existing Assessment District; and
WHEREAS, this Council has determined to proceed to levy an annual assessment and on April 18, 2023, ordered in Resolution No. 29-23 that the Engineer prepare and file a report in accordance with the Landscaping and Lighting Act of 1972; and WHEREAS, on May 9, 2023 the Orinda City Council approved the Engineer’s Report as filed with the Clerk of this Council; and
WHEREAS, the Engineer's Report proposes that the assessments levied in Zones L-42 and M-9 be increased to cover the annual District costs; and WHEREAS, the Engineer’s Report proposes that the assessments not be increased over the amounts levied in M-11 in the previous year; and WHEREAS, assessments are to be imposed exclusively to finance the maintenance of lighting and landscaping improvements on streets and are exempt from F.2.c
Packet Pg. 109 Attachment: Resolution 35-23 District M-9 and M-11 Intent to Assess (3106 : LL District 1986-1 2nd meeting Resos etc) Resolution No. 35-23

the approval and procedures required under Section 4 of Article XIII D of the State Constitution.

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

1. This Council declares its intention to levy and collect assessments with the Assessment District for the Fiscal Year 2024. The improvements and services to be funded through such assessments are generally described as follows:

Zone Description
L-42 Street lighting facilities and services.

M-9 Street lighting facilities and services.

M-11 Street lighting facilities and services, street
sweeping services, park and parkway facilities
and services, sidewalk repair, including but not
limited to the beautification of the business area.

2. The Assessment District is designated as “Orinda Street Lighting and Landscape Assessment District No. 1986-1.” It consists of all the territory within the boundaries as described in the Engineer's report and comprises in general those areas within the City which are served with public street lighting facilities.

3. The Engineer's report, which is on file with the City Clerk, contains a full and detailed description of the services, improvements, the boundaries of the assessment district and the three zones within it, and the proposed assessments upon assessable lots and parcels of land within the district.

4. This Council will hold a public hearing on June 6, 2023, at 7:00 p.m., at the Orinda Library Auditorium, 26 Orinda Way, Orinda, California or by teleconference via Zoom webinar, on the question of the levy of the proposed assessment.

5. The City Clerk is directed to publish a notice of the meeting and hearing in accordance with the provisions of Section 22626(a) of the Streets and Highways Code.

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Packet Pg. 110 Attachment: Resolution 35-23 District M-9 and M-11 Intent to Assess (3106 : LL District 1986-1 2nd meeting Resos etc) Resolution No. 35-23

Adopted by the City Council of the City of Orinda at a regular meeting on May 9, 2023, by the following vote:

AYES: COUNCILMEMBERS:

RECUSED: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Inga Miller, Mayor
ATTEST:

Sheri Marie Smith, City Clerk
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Packet Pg. 111 Attachment: Resolution 35-23 District M-9 and M-11 Intent to Assess (3106 : LL District 1986-1 2nd meeting Resos etc) City Council
Staff Report
Agenda Item: F.3
Date: May 9, 2023
Department:

Public Works and
Engineering Services
AGENDA TITLE: Contract Acceptance of the City Hall North Parking Lot Slope Stabilization Project No. 4108 with NBC Construction, Inc.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No.33-23 Acceptance of Work for the City Hall North Parking Lot Slope Stabilization Project No. 4108 with NBC Construction, Inc. and authorize the City Clerk to sign and file the Notice of Completion with the Contra Costa County Clerk-Recorder.

BACKGROUND:

On October 19, 2021, the City Council awarded a construction contract to NBC Construction, Inc. of San Francisco, California in the amount of $621,834 for performance of the City Hall North Parking Lot Slope Stabilization Project No. 4108 and authorized a 15% contingency fund for a total construction budget of $715,110. The Contractor entered into a construction contract with the City subsequent to review and approval by the City Attorney.

The project addresses slope instability that had resulted in distress to the equipment pad located at the northwest end of City Hall building’s north parking lot on Santa Maria Way. A geotechnical investigation was conducted, and it recommended stabilization and repair measures. The construction involved installing concrete stabilization piles along the slope and a concrete grade beam adjacent to the equipment pad. In addition, an existing retaining wall located adjacent to the City Hall building has also been reconstructed.

DISCUSSION:

Due to contract award during 2021 winter weather, the project had a delayed start and a Notice to Proceed was issued to the Contractor on February 14, 2022. The project encountered additional unforeseen delays during construction due to (i) County inspection process requiring additional days for inspection due to the complex nature of construction process involved in placing the 34 concrete piers and (ii) weather related delays in winter 2022. Due to the delays not directly being the result of the contractor’s performance of the work, no liquidated damages were assessed to the Contractor upon substantial completion of the project.

The project included one change order in the amount of $13,638. The project area consists of a steep embankment and permanent erosion control measures were installed for long term stability of the slope.

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NEXT STEPS:

Upon City Council approval, the City Engineer will sign the Notice of Completion and the City Clerk will record it with the Contra Costa County Clerk-Recorder’s Office. The 5% withheld retention will be paid to NBC Construction Inc. thirty-five (35) days after recordation of the Notice of Completion, provided that no stop notices are outstanding.

FISCAL IMPACT:

The following is a summary of the project construction / improvement costs:

Authorized Cost Based On Award Plus Contingency
Original Base Bid = $ 621,834
Contingency $ 93,276
Total Authorized Contract $ 715,110
Actual Costs At Close-out
Base Project Costs $ 621,834
Change Order #1 13,638
___________
Total Final Contract $ 635,472
Net funding surplus $ 79,638
The surplus funding of $79,638 will be made available for other future projects.

ATTACHMENTS:

A. Resolution 33-23 Acceptance of City Hall North Slope Stabilization CIP-4108 B. Notice of Completion-4108
Respectfully Submitted by:

Scott Christie
Public Works Director
Prepared By: Sivakumar Natarajan, City Engineer
Approved by:

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BEFORE THE CITY COUNCIL OF THE CITY OF ORINDA
In the Matter of:

Acceptance of Work for the City Hall
North Parking Lot Slope Stabilization
Project CIP No. 4108, in the City of
Orinda and Authorizing the City Clerk to
sign and file the Notice of Completion
with the Contra Costa County ClerkRecorder
)
) Resolution No. 33-23
)
)
)
)
)
)

WHEREAS, NBC Construction, Inc., has completed the work in accordance with the construction contract documents for the City Hall North Parking Lot Slope Stabilization Project CIP No. 4108; and
WHEREAS, the Director of Public Works has recommended that the work be accepted as complete.

NOW THEREFORE BE IT RESOLVED that the work accomplished by NBC Construction, Inc., under the terms and conditions of the above-referenced construction contract documents is hereby accepted.

BE IT FURTHER RESOLVED that the City Clerk is hereby authorized to sign and file the Notice of Completion with the Contra Costa County Clerk-Recorder.

BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized to release all withheld project retention thirty-five (35) days after recordation of the Notice of Completion, provided that no stop notices are outstanding.

The above and foregoing Resolution was passed and adopted at a regular meeting of the City Council of the City of Orinda held on May 9, 2023 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
______________________
Inga Miller, Mayor
ATTEST:
____________________________
Sheri Marie Smith, City Clerk
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Packet Pg. 114 Attachment: Resolution 33-23 Acceptance of City Hall North Slope Stabilization CIP-4108 (3101 : Acceptance of City Hall North Parking Lot

RECORDING REQUESTED BY AND
WHEN RECORDED, RETURN TO:

City Clerk/Public Works Dept.

City of Orinda
22 Orinda Way
Orinda, CA 94563

NO FEE DOCUMENT
(Government Code section 27383)
TITLE:

Notice of Completion for
City Hall North Parking Lot Slope Stabilization Project, City Project No. 4108 (Contractor: NBC Construction, Inc.)
NOTICE IS HEREBY GIVEN by the undersigned, those certain improvements, to wit:

City Hall North Parking Lot Slope Stabilization Project CIP No. 4108 Project location is 22 Orinda Way, Orinda, Contra Costa County, California:

Property Owner: Interest in Property or Right of Way is owned by City of Orinda (a municipal corporation, 22 Orinda Way, Orinda CA 94563) as fee title.

The contract which has heretofore been let to NBC Construction, Inc., and which contract was filed for record in the City Clerk’s office in the City of Orinda, Contra Costa County, California, was completed in accordance with the plans and specifications, and the work was completed and accepted by the City of Orinda, on 5/9/2023
Information pertaining to the estimate of cost, names of bidders with prices bid, changes in adopted and approved plans and specifications, and the total cost of work is on file at the City Clerks’ office of the City of Orinda.

CITY OF ORINDA,
a municipal corporation
Date: ________________ By: ____________________________________ Sivakumar Natarajan, City Engineer
R.C.E. #74789
City of Orinda
22 Orinda Way
Orinda, CA 94563
I hereby certify, under penalty of perjury, that the above Notice of Completion was duly accepted by the City Council of the City of Orinda at a regular meeting thereof held on 5/9/2023. ______________________________
Sheri Smith, City Clerk
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Packet Pg. 115 Attachment: Notice of Completion-4108 (3101 : Acceptance of City Hall North Parking Lot Slope Stabilization) City Council
Staff Report
Agenda Item: F.4
Date: May 9, 2023
Department: Parks and Recreation
AGENDA TITLE: New 3-year lease agreement with the Orinda Association for space at the Orinda Library
RECOMMENDATION:

Authorize the City Manager to execute on behalf of the City a new 3-year lease agreement with the Orinda Association.

BACKGROUND:

In September 2020, the City of Orinda entered into a lease agreement with the Orinda Association. The leased space includes approximately 359 square feet plus 98 square feet of storage. The monthly rent was established as a flat monthly net payment of $593.00, which included a rent reduction for providing services (credit of $375 per month). The current lease expires on June 30, 2023, and Staff have been in discussions with representatives of the Orinda Association regarding the renewal.

DISCUSSION:

The Orinda Association (OA) has been a responsible tenant that provides valuable services to the community and the City would like to enter into a new lease agreement for use of an office space in the Orinda Library, with an effective date of July 1, 2023, at a monthly net payment of $623, with no provision for the rate to increase over the term of the lease. The proposed term will expire on June 30, 2026.

Attachment A is a red-lined version of the agreement with the language changes. The new lease agreement sets the monthly market rate at $1074 per month, which is then discounted to a net payment of $623.00 per month. Under both the current and proposed leases, in lieu of payment for a portion of the total rent, Orinda Association agrees to operate certain volunteer services. The value assigned to the volunteer services is $451 per month. The Orinda Association operates a Volunteer Center and recruits volunteers through a variety of methods. In addition, the Orinda Association will provide annual accounting of its operation to the City Council around April 1 of each year (due to extremely busy times coming out of the pandemic, this year’s report is delayed until June).

The Orinda Association is requesting some modest changes to the lease language, including a request to remove reference to creating and maintaining a community calendar of volunteer activities noted in the list of the services that the OA provides as part of the lease (Paragraph 4(a)(i). The OA indicates this service has steadily dwindled over the years and, of course, virtually stopped completely with Covid. They state their requests for feedback from the various groups are rarely, if ever, granted. The OA intends to continue the practice of actively seeking volunteers via a number of websites F.4
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and social media outlets. In all, the OA feels it is doing much more in terms of volunteer recruitment than ever before, but are using other strategies to connect with people.

Other aspects of the previous lease agreement remain unmodified.

FISCAL IMPACT:

Net rent payments to the City for the three year lease period beginning July 1, 2020 will total approximately $22,428.

ATTACHMENTS:

A. Redline Comparison of Proposed Orinda Association Lease to Previous Lease Respectfully Submitted by:

Todd Trimble
Director of Parks and Recreation
Prepared By: Todd Trimble, Director of Parks and Recreation Approved by:

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Orinda Association Office Space Lease – Orinda Library
Space 111
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8.3.2020

1. PARTIES.

This Lease, dated as of the date of the last signature, is made by and between the City of Orinda (“Landlord”) and Orinda Association, a non-profit corporation (“Tenant”). Tenant is independent of the City and is solely responsible for its acts or omissions. Tenant (including its agents, servants, and employees) is not City’s agent, employee or representative for any purpose.

2. LEASE OF PREMISES.
(a) Landlord leases to Tenant and Tenant leases from Landlord the Premises shown on Exhibit A and further described in Section 3(e) for office and storage purposes. (b) This Lease is subject to the terms, covenants and conditions set forth in this document and each party agrees as a material part of the consideration for this Lease to keep and perform each and all of its terms, covenants and conditions.
(c) This Lease is also subject to the terms and provisions of the Lease-Option and the Ground Lease (between the City of Orinda and The Friends of the Orinda Library) governing the Orinda Library building and related facilities, including the Premises and its environs. To the extent that this Lease is inconsistent with either of those leases, the Lease-Option and the Ground Lease shall control the rights and obligations of the parties to this Lease and shall supersede this Lease. The terms of the Lease-Option and the Ground Lease are therefore incorporated into this lease by this reference. The Lease-Option Agreement allows the City to sublease that area designated as Room 111 to a community based organization.
(d) The Lease Term shall commence as of July 1, 20230 (the Lease Term Commencement Date) and shall continue until June 30, 20263.

3. DEFINITIONS.

As used in this Lease, the following terms have the following meanings:
(a) Common Areas: All spaces, equipment and facilities in the areas of the Orinda Library shown on Exhibit B other than the Premises, the premises of other tenants, the auditorium and the space occupied by the operating library and its support services. (b) Ground Lease: The lease dated October 7, 2001, between the City of Orinda, lessor, and The Friends of the Orinda Library, lessee, for use of property owned by the City for the location of the new Orinda Library and related facilities.
(c) Landlord’s Mailing Address: City of Orinda, 22 Orinda Way, Orinda, CA 94563, Attention: City Manager.
(d) Lease-Option: The lease dated October 7, 2001, between The Friends of the Orinda Library, lessor, and the City of Orinda, lessee, for use and operation of the Orinda Library building and related facilities.
(e) Premises: That portion of the Orinda Library containing approximately 359 square feet of floor area as shown on Exhibit A and commonly designated as space/unit 111 as well as that portion F.4.a
Packet Pg. 118 Attachment: Redline Comparison of Proposed Orinda Association Lease to Previous Lease (3103 : Lease agreement with the Orinda Orinda Association Office Space Lease – Orinda Library
Space 111
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containing approximately 98 square feet of storage space and commonly designated as space/unit 110. The total rentable area is approximately 457 square feet. (f) Orinda Library: The building of which the Premises is a part and any other buildings and improvements on the real property ("Property") located at 26 Orinda Way and further described on Exhibit B.
(g) Tenant’s Mailing Address: P.O. Box 97, Orinda, CA 94563.

4. TENANT SERVICES & PAYMENTS.
(a) The ordinarily applicable monthly market rate rent for the premises (457 square feet) is $2.3512 per square foot, resulting in a total Monthly Market Rate Rent of approximately $1074968.00 per month. In lieu of payment of market rate rent, Tenant shall receive a rent reduction of $451375.00 per month for the performance of public services described in section (a)(i – ii) below. .

Provided Tenant satisfactorily performs the services for the rent reduction, the discounted monthly rent to be collected is $623593.00 per month.

Tenant shall perform the following services to be eligible for the rent reduction:
(i) Operate a Volunteer Center at the Premises for a minimum of 30 hours per week between the hours of 9 a.m. and 6 p.m., Monday through Saturday. The Volunteer Center shall perform activities including the following:
• Organizing volunteers for the 4th of July event and act as a volunteer clearinghouse for other City-sponsored events;
• Inform members of the community about volunteer opportunities and connect community organizations with potential volunteers;
• Creating and maintaining a guide to community volunteer organizations and volunteer activities for schools, service organizations, churches, youth organizations, seniors; • Creating and maintaining a list of specific volunteer projects and establishing a program for matching projects to individuals/organizations; • Publicizing the Volunteer Center and opportunities;
• Updating the Orinda Association website to provide information about Orinda Association programs, the Volunteer Center, and volunteer opportunities; • Investigating potential funding sources and event sponsorship opportunities; • Creating and maintaining a community calendar of volunteer activities. • Operating Seniors Around Town (SAT), a transportation program provided to seniors.

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Packet Pg. 119 Attachment: Redline Comparison of Proposed Orinda Association Lease to Previous Lease (3103 : Lease agreement with the Orinda Orinda Association Office Space Lease – Orinda Library
Space 111
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8.3.2020
Tenant is encouraged to publicize the Volunteer Center and the above-listed activities by various means, including the Orinda Association website, the community calendar and signs in and around the Premises.
(ii) Provide a written report to the City once annually. The report shall be submitted to the City no later than April 1 for the prior year and shall contain the following:
• Financial Data. Tenant shall provide a summary of its financial reports (to include a balance sheet containing its beginning and end of year cash and profit or loss data). • Services Data. Tenant shall describe in detail the work completed during the year both in qualitative terms, i.e., listing project activities, and in quantitative terms, i.e., the number of hours and personnel involved in the operation of the Volunteer Center and the estimated number of hours and personnel involved in volunteer activities. The Tenant shall use its best efforts to submit at least the following to the City with this quarterly report:
o Number of individuals who register through the Volunteer Center. o Number of and description of projects completed or worked on by individuals or organizations engaged through the Volunteer Center.
o Number of organizations participating in Volunteer Center programs. o Website “hits” and contacts to the Orinda Association website. (b) Notwithstanding any provision of this Lease to the contrary, if Tenant fails to provide the services listed above, it shall not be in breach or default of this lease, provided it pays the market rate rent amount of $1074968.00 per month for the period of July 1, 20230 through June 30, 20263.

5. USES & OPERATIONS.

Any use other than office use is prohibited. Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything on or in the premises which will in any way increase the existing rate of or affect any fire or other insurance upon the Orinda Library or any of its contents, or cause a cancellation of any insurance policy covering the Orinda Library or any of its contents. Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Orinda Library or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. Tenant shall not permit litter and other refuse in and around the Premises. For this purpose, Tenant shall provide and maintain sufficient waste containers in convenient locations near the Premises. Tenant shall follow the procedures established by Landlord at the Orinda Library for the separation and disposal of recyclables, compostables and other waste.

6. COMPLIANCE WITH LAW.

Tenant shall not use the Premises, or permit anything to be done in or about the Premises, which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or F.4.a
Packet Pg. 120 Attachment: Redline Comparison of Proposed Orinda Association Lease to Previous Lease (3103 : Lease agreement with the Orinda Orinda Association Office Space Lease – Orinda Library
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which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may later be in force and with the requirements at any board of fire underwriters or other similar bodies now or hereafter constituted relating to or affecting the condition, use or occupancy of the Premises, excluding structural changes not related to or affected by Tenant’s improvements or acts. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of that fact as between Landlord and Tenant.

7. ALTERATIONS AND ADDITIONS.

Tenant shall not make or allow any alterations, additions or improvements to or of the Premises without first obtaining the written consent of Landlord. Any alterations, additions or improvements to or of the Premises, including but not limited to wall covering, paneling and built-in cabinet work, but excepting movable furniture and trade fixtures, shall at once become a part of the realty and belong to Landlord and shall be surrendered with the Premises. In the event Landlord consents to any alterations, additions or improvements to the Premises by Tenant, the same shall be made by Tenant at Tenant’s sole cost and expense, in a good and workmanlike manner in accordance with all applicable laws (including laws relating to the use of hazardous materials such as asbestos-containing materials) and diligently completed. At the end of the lease, the tenant shall quickly remove any alterations, additions, or improvements made by Tenant which the Landlord designates to be removed at that time. The removal shall be at Tenant’s sole cost and expense. Also, Tenant shall quickly repair any damage to the Premises caused by such removal at its sole cost and expense.

8. REPAIRS.
(a) By entering the Premises, Tenant shall be deemed to have accepted the Premises as being in good, sanitary order, condition and repair. Tenant shall, at Tenant’s sole cost and expense, keep the Premises in good condition and repair (except for Landlord’s obligations) including without limitation, the maintenance, replacement and repair of any interior paint and flooring. Tenant shall, upon the expiration or sooner termination of this Lease, surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear and damage from causes beyond the reasonable control of Tenant excepted. Any damage to adjacent premises caused by Tenant’s use of the Premises shall be repaired at the sole cost and expense of Tenant. (b) Regardless of other terms of this lease, Landlord at its expense shall maintain and repair the structural portions of the Orinda Library, including the exterior walls and the structural portions of the roof and also including the doors and windows within the leased Premises of the Orinda Association, including specifically the front exterior doors and glass to the leased space, the side door and glass leading to the May Room, the storage room door, and the pump room door, unless such maintenance and repair are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees, invitees, or any damage caused by breaking and entering done by any employee or volunteer associated with the Orinda Association, in which case Tenant shall pay to Landlord the actual cost of such maintenance and repairs.

Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. Except as provided in Section 22, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or F.4.a
Packet Pg. 121 Attachment: Redline Comparison of Proposed Orinda Association Lease to Previous Lease (3103 : Lease agreement with the Orinda Orinda Association Office Space Lease – Orinda Library
Space 111
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8.3.2020
interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Orinda Library or the Premises or in or to fixtures, appurtenances and equipment located there. Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or later in effect.

9. LIENS.

Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by or on behalf of Tenant.

Landlord may require, at Landlord’s sole option, that Tenant shall provide to Landlord, at Tenant’s sole cost and expense, a lien and completion bond in an amount equal to one and one-half (1-1/2) times the estimated cost of any improvements, additions, repairs or alterations in the Premises which Tenant desires to make, to insure Landlord against any liability for mechanics’ and materialmen’s liens and to insure completion of the work.

10. ASSIGNMENT AND SUBLETTING.

Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest in it, and shall not sublet any part of the Premises, or any appurtenant right or privilege, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the Premises, except that Tenant may permit a non-profit entity that provides a service to Orinda to share the Premises from time to time on such terms and conditions as Tenant and the entity may mutually adopt. The sublease must be in accordance with the agreement between the City and the Friends of the Library and be approved by the City Manager or their designee.

Sharing the Premises shall not affect the obligations of Tenant under this Lease.

11. HOLD HARMLESS.
(a) Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant’s use of the Premises or from the conduct of its business or from any activity, work, or other things done, permitted or suffered by Tenant in or about the Premises, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any officer, agent, employee, guest, or invitee of Tenant, and from all costs, attorneys’ fees, and liabilities incurred in or about the defense of any such claim or any action or proceeding brought in relation to this lease. If any action or proceeding is brought against Landlord by reason of such claim, Tenant upon notice from Landlord shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, assumes all risk of damage to property or injury to persons in, on or about the Premises, from any cause other than Landlord’s negligence; and Tenant waives all claims against Landlord relating to such damages and injuries. Tenant shall give prompt notice to Landlord in case of casualty or accidents in the Premises.
(a) Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Orinda Library or from the pipes, appliances or plumbing works in that location or from the roof, street or subsurface or from any other place resulting from dampness or any other cause, unless caused by or due to the negligence of Landlord, its agents, servants or employees.

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Landlord or its agents shall not be liable for interference with the light, air, or for any latent defect in the Premises.

12. INSURANCE.

Tenant shall, at Tenant’s expense, maintain Workers’ Compensation insurance and employer’s liability insurance in accordance with California law. In addition, Tenant shall require each subcontractor approved by the City to similarly maintain workers’ compensation insurance and employer’s liability insurance in accordance with California law.

Tenant shall, at Tenant’s expense, obtain and keep in force during the Lease Term a policy of commercial general liability insurance (sometimes known as comprehensive public liability insurance) insuring Landlord and Tenant (and, if requested by Landlord, Landlord’s lender and property manager) against any liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the ownership, use, occupancy or maintenance of the Premises and all appurtenant areas.

Such insurance shall be in the amount of not less than $1,000,000 per occurrence. The limit of any such insurance shall not, however, limit the liability of Tenant under this Lease. Tenant may provide this insurance under a blanket policy, provided that this insurance shall have a Landlord’s protective liability endorsement attached. If Tenant shall fail to procure and maintain this insurance, Landlord may, but shall not be required to, procure and maintain same, but at the expense of Tenant. (a) Insurance required by this Lease shall be by companies rated A:XlI or better as set forth in the most current “Best’s Key Rating Guide.”
(b) The insurance policy shall name Landlord, its officers, employees and volunteers as additional insureds.
(c) No policy shall be cancelable or subject to reduction of coverage. (d) All such policies shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry.

Tenant shall deliver certificates evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to Landlord. In addition, Tenant shall provide an endorsement itemizing the requirements set forth in (b), (c), and (d) of this section 12 and setting forth the insurer’s waiver of rights of subrogation under Paragraph 13 below.

13. SUBROGATION.

Tenant’s insurer shall waive all rights of subrogation against the City, its elected or appointed officers, officials, employees or agents and volunteers.

14. UTILITIES.

Tenant shall pay directly for all separately metered utilities serving the Premises including telephone service, together with any taxes.

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15. PERSONAL PROPERTY TAXES.

Tenant shall pay, or cause to be paid, before delinquency any and all taxes levied or assessed and which become payable during the Lease Term upon all of Tenant’s leasehold improvements, equipment, furniture, fixtures and any other personal property located in the Premises. In the event any or all of Tenant’s leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property, Tenant shall pay to Landlord its share of such taxes within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant’s property.

16. RULES AND REGULATIONS.

Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate for the operation of the Orinda Library and related facilities and surrounding areas. The rules and regulations shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any rules and regulations by any other tenants or occupants.

17. HOLDING OVER.

If Tenant remains in possession of the Premises or any part of the Premises after the expiration of the Lease Term with the express written consent of Landlord, such occupancy shall be a tenancy from month to month, plus all other charges payable under this Lease, and on all the Lease terms applicable to a month to month tenancy.

18. ENTRY BY LANDLORD.

Landlord reserves, and shall at any and all times during business hours have, the right to enter the Premises to inspect them, to submit the Premises to prospective purchasers or tenants, to post notices of non-responsibility, to repair and maintain the Premises and any portion of the Orinda Library of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of rent, and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be unreasonably blocked by such structures, and further providing that the business of Tenant shall not be interfered with unreasonably. Tenant waives any claim for damages or for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned as a result of Landlord actions and omissions under this paragraph. Landlord at any and all times shall have the right to use any and all means which Landlord may deem proper to open Tenant’s doors in an emergency in order to obtain entry to the Premises, without liability to Tenant except for any failure to exercise due care for Tenant’s property. Any entry to the Premises obtained by Landlord by any of these means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion. Additionally, Tenant acknowledges that Landlord or any person authorized by Landlord has access to the pump room (112) at any time. Landlord agrees that access to these areas will not affect the reasonable operation of the Tenant and any damage caused by such access through the Premises shall not be the responsibility of the Tenant.

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19. TENANT’S DEFAULT.

In addition to other provisions of this lease, the occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant. (a) The vacating or abandonment of the Premises by Tenant. (b) The failure by Tenant to make any payment required to be made by Tenant, as and when due, where such failure shall continue for a period of ten (10) days after written notice by Landlord to Tenant.
(c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease (other than the covenant to perform services described in sections 4(a)(i) and (ii)) to be observed or performed by Tenant, other than described in (b), above, where such failure shall continue for a period of thirty (30) days after written notice by Landlord to Tenant; provided, however, that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) day period and then diligently prosecutes such cure to completion.
(d) Any general assignment or general arrangement for the benefit of creditors of Tenant; or the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days.
(e) Failure to provide hours of operation as required by Landlord from time to time under section 27 below.

20. REMEDIES UPON TENANT’S DEFAULT.

In the event of any default or breach by Tenant, Landlord may at any time after that, in its sole discretion, do any of the following, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach:
(a) Terminate Tenant’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s default including, but not limited to, the cost of recovering possession of the Premises; expenses of reletting, including necessary renovation and alteration of the Premises; reasonable attorneys’ fees; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent and other charges and Expenses for the balance of the Lease Term after the time of such award exceeds the amount of such loss for the same period that Tenant proves could be reasonably avoided; and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease. Unpaid F.4.a
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installments of rent or other sums shall bear interest from the date due at the maximum legal rate; or
(b) Maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover the rent and any other charges and Expenses as may become due; or
(c) Pursue any other remedy or combination of remedies now or later available to Landlord under the laws of the state of California.

21. DEFAULT BY LANDLORD.

Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have been furnished previously to Tenant in writing, specifying how Landlord has failed to perform such obligation. If the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such thirty (30) day period and diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as a result of Landlord’s default and Tenant’s remedies shall be limited to damages or an injunction.

22. RECONSTRUCTION.

N.B. The provisions of this section, like all other provisions of this Lease, are subject to and conditioned on the provisions of the Lease-Option and the Ground Lease as more particularly described in Section 2(c) above.
(a) In the event the Premises are damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to immediately repair same, and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction of the Minimum Rent from the date of damage and while such repairs are being made, such proportionate reduction to be based upon the extent to which the damage and making of such repairs shall reasonably interfere with the business carried on by Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of rent. (b) In the event the Premises are damaged to any extent as a result of any cause other than the perils covered by fire and extended coverage insurance, Landlord shall have the option: (1) to repair, reconstruct or restore the Premises, in which event this Lease shall continue in full force and effect but the Minimum Rent shall be proportionately reduced as provided in this Section during the period of such repair, reconstruction or restoration; or (2) to give notice to Tenant at any time within sixty (60) days after such damage, terminating this Lease as of the date specified in such notice, which date shall be no more than thirty (30) days after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of Tenant in the Premises shall terminate on the date so specified in such notice and the Minimum Rent, reduced by a proportionate reduction, based upon the extent, if any, to which such damage interfered with the business carried on by Tenant in the Premises, shall be paid up to date of said such termination.

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(c) Anything to the contrary contained in this Section 22 notwithstanding, Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under this Section occurs during the last twenty-four months of the Lease Term or any extension.
(d) Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacements of any leasehold improvements, fixtures, or other personal property of Tenant.

23. EMINENT DOMAIN.

N.B. The provisions of this section, like all other provisions of this Lease, are subject to and conditioned on the provisions of the Lease-Option and the Ground Lease as more particularly described in Section 2(c) above.

If all or any portion of the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, either party shall have the right, at its option, within sixty (60) days after said taking, to terminate this Lease upon thirty (30) days written notice. Landlord shall be entitled to any and all awards and settlements which may be given on account of the reduction in the value of the leasehold, the taking of the fee or otherwise and Tenant shall have no claim against Landlord for the value of any unexpired portion of the Lease Term.

24. PARKING AND COMMON AREAS.
(a) Landlord covenants that an area approximately equal to the Common Areas as shown on the attached Exhibit B shall be at all times available for the non-exclusive use of Tenant during the full Lease Term or any extension, provided that the condemnation or other taking by any public authority, or sale in lieu of condemnation, of any or all of such Common Areas shall not constitute a violation of this covenant. Landlord reserves the right to change the entrances, exits, traffic lanes and the boundaries and locations of such Common Areas, provided, however, that regardless of this Section 24, those areas shall at all times be substantially equal or equivalent to that shown on the attached Exhibit B.
(b) Landlord shall keep the automobile parking and Common Areas in a neat, clean and orderly condition and shall repair any damage to the facilities, but all expenses in connection with said Common Areas shall be charged and prorated in the manner as set forth in Section 4. (c) For the use and benefit of Tenant, its agents, employees, customers, licensees and sub-tenants, Tenant shall have the non-exclusive right in common with Landlord and other present and future owners, tenants and their agents, employees, customers, licensees and sub-tenants to use the appropriate Common Areas during the entire Lease Term, or any extension of the Lease, for ingress and egress, and automobile parking.
(d) Tenant, in the use of said Common Areas, agrees to comply with such reasonable rules, regulations and charges for parking as Landlord may adopt from time to time for the orderly and proper operation of said Common Areas. Such rules may include but shall not be limited to the following: (1) the restricting of Tenant parking to a limited, designated area or areas; and (2) the regulation of the removal, storage and disposal of Tenant’s refuse and other rubbish at the sole cost and expense of Tenant.

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25. SIGNS.

It is understood that Tenant may place signs, easels, newspaper racks, or similar signage immediately outside the doors to the premises, but only during the hours that the Orinda Association office is open, and will be placed inside during the closed hours (signs may remain outside during office lunch hour periods) as long as they do not impede public/ADA access and do not violate the City’s lease agreement with the Friends of the Library. It is understood that Tenant may place vinyl banners signs up in the Library Plaza area during the Furth of July celebration and for a reasonable time prior (not to exceed 15 days), given the City is a co-sponsor of the event and has provided written approval. In no case shall Tenant affix any sign to the roof.

26. DISPLAYS.

Tenant may not store or sell merchandise outside the defined exterior walls and permanent doorways of the Premises. A modest display of promotional items may be allowed immediately adjacent to the entrance as long as it is not unsightly, does not impede public/ADA access, and does not violate the City’s lease agreement with the Friends of the Library. The display will also be subject to approval by the City Manager or their designee. Tenant further agrees not to install or use any exterior lighting, sound speakers or any audio electronic equipment which may be heard or seen outside the Premises.

27. HOURS OF BUSINESS.

An important purpose of this lease is to use the Premises to contribute to an active community vitality in the Heart of Orinda area. Visible activity and traffic to and from the Premises is therefore desirable to the City. For that reason, and subject to the provisions of Section 22, Tenant shall continuously during the entire Lease Term conduct and carry on Tenant’s business in the Premises and shall keep the Premises open for business and cause Tenant’s business to be conducted at the Premises as specified in Section 4.

28. GENERAL PROVISIONS.
(a) Attachments. All attachments are incorporated into this document as though set forth completely in it.
(b) Waiver. The waiver by Landlord of any term, covenant or condition of this Lease shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition of this Lease. The subsequent acceptance of rent by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such preceding default at the time of acceptance of such rent.
(c) Joint Obligation. If there is more than one Tenant, the obligations of this Lease shall be joint and several.
(d) Marginal Headings. The marginal headings and section titles to the sections of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part. (e) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.

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(f) Successors and Assigns. The covenants and conditions of this lease, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and alleged assigns of the parties.
(g) Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum may be recorded at the request of, or with the permission of, Landlord. (h) Quiet Possession. Upon Tenant’s paying the rent and observing and performing all of the covenants, conditions and provisions on Tenant’s part to be observed and performed, Tenant shall have quiet possession of the Premises for the entire Lease Term, subject to all the provisions of this Lease.
(i) Late Charges. Tenant acknowledges that late payment by Tenant to Landlord of rent or other sums due will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises, and attorneys’ fees and costs.

Accordingly, if any installment of rent or any sum due from Tenant shall not be received by Landlord’s designee within ten (10) days after written notice that the amount is past due, then Tenant shall pay to Landlord a late charge equal to the maximum amount permitted by law (and in the absence of any governing law, ten percent (10%) of such overdue amount), plus any attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay rent and/or other charges when due. The parties agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the late payment by Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies in this Lease.
(j) Prior Agreements. This Lease contains all of the agreements of the parties with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties.
(k) Inability to Perform. This Lease and the obligations of Tenant shall not be affected or impaired because Landlord is unable to fulfill any of its obligations or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of Landlord.
(l) Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision and such other provision shall remain in full force and effect.
(m) Cumulative Remedies. No remedy or election in this Lease shall be deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity. (n) Choice of Law. This Lease shall be governed by the laws of the State of California.

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(o) Attorneys’ Fees. In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party shall be entitled to recover its expenses and costs, including its attorneys’ fees and expert witness fees in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable. (p) Sale of Premises by Landlord. In the event of any sale of the Premises by Landlord, Landlord shall be and is entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring after the consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of Landlord under this Lease. (q) Subordination; Attornment. Upon request of Landlord, Tenant will in writing subordinate its rights under this lease to the lien of any mortgage or deed of trust, to any bank, insurance company or other lending institution, now or later in force against the Premises, and to all advances made or later to be made on the security for such advances. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by Landlord covering the Premises, Tenant shall become the tenant of the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. Regardless of the provisions of this section 28(q), so long as Tenant is not in default, this Lease shall remain in full force and effect for the full term. (r) Notices. Wherever this Lease requires or permits notice or demand to be given by either party to the other, such notice or demand shall be in writing and given or served, either personally or in writing forwarded by certified mail, return receipt requested, addressed to the parties at the addresses specified in Sections 3(c) and (g). Either party may change such address by written notice to the other.
(s) Tenant’s Statement (Estoppel Certificate). Tenant shall at any time and from time to time, upon not less than three days prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect), and the date to which the rental and other charges are paid in advance, if any, and (b) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord, or specifying such defaults if any are claimed, and (c) setting forth the date of commencement of rents and expiration of the Lease Term. Any such statement may be relied upon by the prospective purchaser or encumbrance of all or any portion of the real property of which the Premises are a part.

29. COMPLIANCE.

The parties agree to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement, including, but not limited to, the 1964 Civil Rights Act and all amendments, the Foreign Investment In Real Property Tax Act, the Comprehensive Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act.

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30. TERMINATION BY TENANT.

Tenant may terminate this Lease without cause by giving Landlord written notice of its intention to do so 30 days or more prior to the effective date of termination.

31. TERMINATION BY LANDLORD.

Landlord my terminate this lease by giving Tenant written notice of its intention to do so forty-five (45) days or more prior to the effective date of termination if there is a material breach by the Tenant under the terms and conditions of this lease, and Tenant is given written notice of said breach and the opportunity to cure said breach within fifteen (15) days.

32. TENANT FINANCIAL STATEMENTS.

Tenant, upon request by Landlord, shall provide to Landlord current financial statements for the nonprofit corporation.

33. AUTHORITY OF TENANT
Tenant represents and warrants that the individual executing this Lease on behalf of the corporation has full authority to do so and that this Lease binds the corporation.

34. BINDING ARBITRATION/MEDIATION
Any dispute or claim arising out of this Lease shall first be addressed through the process of Mediation, with each side to agree upon the selection of a Mediator, who will schedule the Mediation. The fees and costs of the Mediator will be split evenly between the parties. Thereafter, if the Mediation is unsuccessful in resolving the dispute or claim, the dispute or claim shall be adjudicated by arbitration pursuant to the provisions of the Code of Civil Procedure sections 1280 et seq. or such law then in force in California governing arbitration, with any rules of procedure not set out in such law to be established by a professional arbitration association. If the parties are unable to agree on an arbitrator, each party shall select an arbitrator within 15 days after a demand for arbitration by any party, with a third arbitrator to be selected jointly by the two arbitrators within 15 days after the original two arbitrators are selected. The parties shall share equally in the costs of the arbitration.

NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY

CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE

SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND

APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO

ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO

ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION TO NEUTRAL ARBITRATION.

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Section 34 Acknowledgment:
_____________ Landlord by: __________________________________________ _____________ Tenant by: __________________________________________ LANDLORD: TENANT:

By: By:

Steve SalomonDavid Biggs, City Manager Orinda Association Date:__________ ____Sally Hogarty_____________, President Date:__________
Attest:

By:

Sheri Smith, City Clerk
Approved as to form:

By:

Osa L. Wolff, City Attorney
CONSULT YOUR ATTORNEY. If this Lease has been filled in it has been prepared for submission to your attorney for his or her approval. No representation or recommendation is made by the City of Orinda or its agents or employees as to the legal sufficiency, legal effect, or tax consequences of this Lease.

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Staff Report
Agenda Item: F.5
Date: May 9, 2023
Department: Parks and Recreation
AGENDA TITLE: New 3-year lease agreement with the Orinda Historical Society for space at the Orinda Library
RECOMMENDATION:

Authorize the City Manager to execute on behalf of the City a new 3-year lease agreement with the Orinda Historical Society.

BACKGROUND:

In June 2020, the City of Orinda entered into a lease agreement with the Orinda Historical Society. The monthly rent for approximately 593 square feet was a flat rate of $75.00 per month without any provision for an adjustment. The current lease expires on June 30, 2023.

DISCUSSION:

The Orinda Historical Society (OHS) has been a responsible tenant and the City would like to enter into a new lease agreement for use of an office space in the Orinda Library, with an effective date of July 1, 2023. The proposed rate is $80 per month, a slight increase over the current $75 per month. The lease term will expire on June 30, 2026.

The OHS is recommending a slight adjustment in their hours. A redlined copy of the proposed lease is attached. All other aspects of the previous lease agreement remain unmodified.

FISCAL IMPACT:

Rent payments will total approximately $2,880 for the three-year lease period.

ATTACHMENTS:

A. Redline Comparison Proposed Orinda Historical Society Lease to Previous Lease Respectfully Submitted by:

Todd Trimble
Director of Parks and Recreation
Prepared By: Todd Trimble, Director of Parks and Recreation Approved by:

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Orinda Historical Society Lease – Orinda Library
Spaces 106/107

1. PARTIES.

This Lease, dated as of the date of the last signature, is made by and between the City of Orinda (“Landlord”) and Orinda Historical Society, a non-profit corporation (“Tenant”). Tenant is independent of the City and is solely responsible for its acts or omissions. Tenant (including its agents, servants, and employees) is not City’s agent, employee or representative for any purpose.

2. LEASE OF PREMISES.
(a) Landlord leases to Tenant and Tenant leases from Landlord the Premises shown on Exhibit A and further described in Section 3(e) for the purpose of operating a public place to store Orinda Area Historical Archives which from time to time will be utilized for archival research by the general public.
(b) This Lease is subject to the terms, covenants and conditions set forth in this document and each party agrees as a material part of the consideration for this Lease to keep and perform each and all of its terms, covenants and conditions.
(c) This Lease is also subject to the terms and provisions of the Lease-Option and the Ground Lease (between the City of Orinda and The Friends of the Orinda Library) governing the Orinda Library building and related facilities, including the Premises and its environs. To the extent that this Lease is inconsistent with either of those leases, the Lease-Option and the Ground Lease shall control the rights and obligations of the parties to this Lease and shall supersede this Lease. The terms of the Lease-Option and the Ground Lease are therefore incorporated into this lease by this reference.
(d) The Lease Term shall commence as of July 1, 20230 (the Lease Term Commencement Date) and shall continue until June 30, 20263.

3. DEFINITIONS.

As used in this Lease, the following terms have the following meanings:
(a) Common Areas: All spaces, equipment and facilities in the areas of the Orinda Library shown on Exhibit D other than the Premises, the premises of other tenants, the auditorium and the space occupied by the operating library and its support services. (b) Ground Lease: The lease dated October 7, 2001, between the City of Orinda, lessor, and The Friends of the Orinda Library, lessee, for use of property owned by the City for the location of the new Orinda Library and related facilities.
(c) Landlord’s Mailing Address: City of Orinda, 22 Orinda Way, Orinda, CA 94563, Attention: City Manager.
(d) Lease-Option: The lease dated October 7, 2001, between The Friends of the Orinda Library, lessor, and the City of Orinda, lessee, for use and operation of the Orinda Library building and related facilities.

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(e) Premises: That portion of the Orinda Library containing approximately 593 square feet of floor area as shown on Exhibit A and commonly designated as space/unit 106/107. (f) Orinda Library: The building of which the Premises is a part and any other buildings and improvements on the real property ("Property") located at 26 Orinda Way and further described on Exhibit D.
(g) Tenant’s Mailing Address: P.O. Box 82, Orinda, CA 94563. (h) Tenant’s Proportionate Share: 2.78%. This share is the percentage equivalent of a fraction, the numerator of which is the rentable area of the Premises and the denominator of which is the total rentable area of the buildings in the Orinda Library available for the use and occupancy by tenants as determined by Landlord from time to time on a consistent basis.

4. TENANT SERVICES & PAYMENTS.
(a) In lieu of paying the otherwise-applicable market rate rent, Tenant shall perform the following services:
(i) Operate and provide to the public a place to research Orinda Historical Archives and a space linked to the research and cataloging of items connected to Orinda’s history in coordination with the Orinda Library. Tenant shall provide: (1) regular public access hours to its museum, with regularly changing displays; (2) educational tours to the public of historical sites conducted by members of the Orinda Historical Society; (3) public access by appointment to the museum and archives for the conduct of historical research; and (4) such additional public access as may be agreed by Tenant and City Staff. (ii) Provide an annual written report to the City. The report shall be submitted to the City no later than June 30 of each year and shall address Tenant’s provision of services described above.
(b) In addition, Tenant shall pay to Landlord a monthly payment of $8075.00 per month beginning on July 1, 20230.

5. USES & OPERATIONS.

Any use other than a public place to store and research Orinda Area Historical Archives is prohibited.

Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything on or in the premises which will in any way increase the existing rate of or affect any fire or other insurance upon the Orinda Library or any of its contents, or cause a cancellation of any insurance policy covering the Orinda Library or any of its contents. Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Orinda Library or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. Tenant shall not permit litter and other refuse in and around the Premises. For this purpose, Tenant shall provide and maintain sufficient waste containers in convenient locations near the Premises.

Tenant shall follow the procedures established by Landlord at the Orinda Library for the separation and disposal of recyclables, compostables and other waste.

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6. COMPLIANCE WITH LAW.

Tenant shall not use the Premises, or permit anything to be done in or about the Premises, which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may later be in force and with the requirements at any board of fire underwriters or other similar bodies now or hereafter constituted relating to or affecting the condition, use or occupancy of the Premises, excluding structural changes not related to or affected by Tenant’s improvements or acts. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of that fact as between Landlord and Tenant.

7. ALTERATIONS AND ADDITIONS.

Tenant shall not make or allow any alterations, additions or improvements to or of the Premises without first obtaining the written consent of Landlord. Any alterations, additions or improvements to or of the Premises, including but not limited to wall covering, paneling and built-in cabinet work, but excepting movable furniture and trade fixtures, shall at once become a part of the realty and belong to Landlord and shall be surrendered with the Premises. In the event Landlord consents to any alterations, additions or improvements to the Premises by Tenant, the same shall be made by Tenant at Tenant’s sole cost and expense, in a good and workmanlike manner in accordance with all applicable laws (including laws relating to the use of hazardous materials such as asbestos-containing materials) and diligently completed. At the end of the lease, the tenant shall quickly remove any alterations, additions, or improvements made by Tenant which the Landlord designates to be removed at that time. The removal shall be at Tenant’s sole cost and expense. Also, Tenant shall quickly repair any damage to the Premises caused by such removal at its sole cost and expense.

8. REPAIRS.
(a) By entering the Premises, Tenant shall be deemed to have accepted the Premises as being in good, sanitary order, condition and repair. Tenant shall, at Tenant’s sole cost and expense, keep the Premises in good condition and repair (except for Landlord’s obligations) including without limitation, the maintenance, replacement and repair of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and lighting fixtures and conduits, heating and air conditioning system (when there is an air conditioning system). Tenant shall, upon the expiration or sooner termination of this Lease, surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear and damage from causes beyond the reasonable control of Tenant excepted. Any damage to adjacent premises caused by Tenant’s use of the Premises shall be repaired at the sole cost and expense of Tenant.
(b) Regardless of other terms of this lease, Landlord at its expense shall maintain and repair the structural portions of the Orinda Library, including the exterior walls and the structural portions of the roof, unless such maintenance and repair are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees, invitees, or any damage caused by breaking and entering, in which case Tenant shall pay to Landlord the actual cost of such maintenance and repairs. Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant.

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Except as provided in Section 22, there shall be no abatement of payments due and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Orinda Library or the Premises or in or to fixtures, appurtenances and equipment located there. Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or later in effect.

9. LIENS.

Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by or on behalf of Tenant.

Landlord may require, at Landlord’s sole option, that Tenant shall provide to Landlord, at Tenant’s sole cost and expense, a lien and completion bond in an amount equal to one and one-half (1-1/2) times the estimated cost of any improvements, additions, repairs or alterations in the Premises which Tenant desires to make, to insure Landlord against any liability for mechanics’ and materialmen’s liens and to insure completion of the work.

10. ASSIGNMENT AND SUBLETTING.

Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest in it, and shall not sublet any part of the Premises, or any appurtenant right or privilege, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the Premises.

11. HOLD HARMLESS.
(a) Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant’s use of the Premises or from the conduct of its business or from any activity, work, or other things done, permitted or suffered by Tenant in or about the Premises, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any officer, agent, employee, guest, or invitee of Tenant, and from all costs, attorneys’ fees, and liabilities incurred in or about the defense of any such claim or any action or proceeding brought in relation to this lease. If any action or proceeding is brought against Landlord by reason of such claim, Tenant upon notice from Landlord shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, assumes all risk of damage to property or injury to persons in, on or about the Premises, from any cause other than Landlord’s negligence; and Tenant waives all claims against Landlord relating to such damages and injuries. Tenant shall give prompt notice to Landlord in case of casualty or accidents in the Premises.
(b) Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Orinda Library or from the pipes, appliances or plumbing works in that location or from the roof, street or subsurface or from any other place resulting from dampness or any other cause, unless caused by or due to the negligence of Landlord, its agents, servants or employees.

Landlord or its agents shall not be liable for interference with the light, air, or for any latent defect in the Premises.

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12. INSURANCE.

Tenant shall, at Tenant’s expense, maintain Workers’ Compensation insurance and employer’s liability insurance in accordance with California law. In addition, Tenant shall require each subcontractor approved by the City to similarly maintain workers’ compensation insurance and employer’s liability insurance in accordance with California law.

Tenant shall, at Tenant’s expense, obtain and keep in force during the Lease Term a policy of commercial general liability insurance (sometimes known as comprehensive public liability insurance) insuring Landlord and Tenant (and, if requested by Landlord, Landlord’s lender and property manager) against any liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the ownership, use, occupancy or maintenance of the Premises and all appurtenant areas.

Such insurance shall be in the amount of not less than $1,000,000 per occurrence. The limit of any such insurance shall not, however, limit the liability of Tenant under this Lease. Tenant may provide this insurance under a blanket policy, provided that this insurance shall have a Landlord’s protective liability endorsement attached. If Tenant shall fail to procure and maintain this insurance, Landlord may, but shall not be required to, procure and maintain same, but at the expense of Tenant. (a) Insurance required by this Lease shall be by companies rated A:XlI or better as set forth in the most current “Best’s Key Rating Guide.”
(b) The insurance policy shall name Landlord, its officers, employees and volunteers as additional insureds.
(c) No policy shall be cancelable or subject to reduction of coverage. (d) All such policies shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry.

Tenant shall deliver certificates evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to Landlord. In addition, Tenant shall provide an endorsement itemizing the requirements set forth in (b), (c), and (d) of this section 12 and setting forth the insurer’s waiver of rights of subrogation under Paragraph 13 below.

13. SUBROGATION.

Tenant’s insurer shall waive all rights of subrogation against the City, its elected or appointed officers, officials, employees or agents and volunteers.

14. UTILITIES.

Tenant shall pay for all water, gas, heat, light, power, sewer charges, telephone service and all other services and utilities supplied to the Premises, together with any taxes. If any such services are not separately metered to Tenant, Tenant shall pay a reasonable proportion to be determined by Landlord of all charges jointly metered with other premises.

15. PERSONAL PROPERTY TAXES.

Tenant shall pay, or cause to be paid, before delinquency any and all taxes levied or assessed and which become payable during the Lease Term upon all of Tenant’s leasehold improvements, equipment, F.5.a
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furniture, fixtures and any other personal property located in the Premises. In the event any or all of Tenant’s leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property, Tenant shall pay to Landlord its share of such taxes within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant’s property.

16. RULES AND REGULATIONS.

Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate for the operation of the Orinda Library and related facilities and surrounding areas. The rules and regulations shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any rules and regulations by any other tenants or occupants.

17. HOLDING OVER.

If Tenant remains in possession of the Premises or any part of the Premises after the expiration of the Lease Term with the express written consent of Landlord, such occupancy shall be a tenancy from month to month, plus all other charges payable under this Lease, and on all the Lease terms applicable to a month to month tenancy.

18. ENTRY BY LANDLORD.

Landlord reserves, and shall at any and all times during business hours have, the right to enter the Premises to inspect them, to submit the Premises to prospective purchasers or tenants, to post notices of non-responsibility, to repair and maintain the Premises and any portion of the Orinda Library of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of payments due, and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be unreasonably blocked by such structures, and further providing that the business of Tenant shall not be interfered with unreasonably. Tenant waives any claim for damages or for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned as a result of Landlord actions and omissions under this paragraph. Landlord at any and all times shall have the right to use any and all means which Landlord may deem proper to open Tenant’s doors in an emergency in order to obtain entry to the Premises, without liability to Tenant except for any failure to exercise due care for Tenant’s property. Any entry to the Premises obtained by Landlord by any of these means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion.

19. TENANT’S DEFAULT.

In addition to other provisions of this lease, the occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant. (a) The vacating or abandonment of the Premises by Tenant. (b) The failure by Tenant to provide the required services and/or make any payment required to be made by Tenant, as and when due, where such failure shall continue for a period of three (3) days after written notice by Landlord to Tenant.

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(c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than described in (b), above, where such failure shall continue for a period of thirty (30) days after written notice by Landlord to Tenant; provided, however, that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) day period and then diligently prosecutes such cure to completion.
(d) Any general assignment or general arrangement for the benefit of creditors of Tenant; or the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days.
(e) Failure to provide hours of operation as required by Landlord from time to time under section 27 below.

20. REMEDIES UPON TENANT’S DEFAULT.

In the event of any default or breach by Tenant, Landlord may at any time after that, in its sole discretion, do any of the following, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach:
(a) Terminate Tenant’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s default including, but not limited to, the cost of recovering possession of the Premises; expenses of reletting, including necessary renovation and alteration of the Premises; reasonable attorneys’ fees; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid payments due and other charges and Expenses for the balance of the Lease Term after the time of such award exceeds the amount of such loss for the same period that Tenant proves could be reasonably avoided; and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease.

Unpaid installments of payments due or other sums shall bear interest from the date due at the maximum legal rate; or
(b) Maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover any charges and Expenses as may become due; or
(c) Pursue any other remedy or combination of remedies now or later available to Landlord under the laws of the state of California.

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21. DEFAULT BY LANDLORD.

Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have been furnished previously to Tenant in writing, specifying how Landlord has failed to perform such obligation. If the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such thirty (30) day period and diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as a result of Landlord’s default and Tenant’s remedies shall be limited to damages or an injunction.

22. RECONSTRUCTION.

N.B. The provisions of this section, like all other provisions of this Lease, are subject to and conditioned on the provisions of the Lease-Option and the Ground Lease as more particularly described in Section 2(c) above.
(a) In the event the Premises are damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to immediately repair same, and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction of the Minimum Rent if any from the date of damage and while such repairs are being made, such proportionate reduction to be based upon the extent to which the damage and making of such repairs shall reasonably interfere with the business carried on by Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of payments due. (b) In the event the Premises are damaged to any extent as a result of any cause other than the perils covered by fire and extended coverage insurance, Landlord shall have the option: (1) to repair, reconstruct or restore the Premises, in which event this Lease shall continue in full force and effect but the Minimum Rent if any shall be proportionately reduced as provided in this Section during the period of such repair, reconstruction or restoration; or (2) to give notice to Tenant at any time within sixty (60) days after such damage, terminating this Lease as of the date specified in such notice, which date shall be no more than thirty (30) days after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of Tenant in the Premises shall terminate on the date so specified in such notice and the Minimum Rent if any, reduced by a proportionate reduction, based upon the extent, if any, to which such damage interfered with the business carried on by Tenant in the Premises, shall be paid up to date of said such termination. (c) Anything to the contrary contained in this Section 22 notwithstanding, Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under this Section occurs during the last twenty-four months of the Lease Term or any extension.
(d) Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacements of any leasehold improvements, fixtures, or other personal property of Tenant.

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23. EMINENT DOMAIN.

N.B. The provisions of this section, like all other provisions of this Lease, are subject to and conditioned on the provisions of the Lease-Option and the Ground Lease as more particularly described in Section 2(c) above.

If all or any portion of the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, either party shall have the right, at its option, within sixty (60) days after said taking, to terminate this Lease upon thirty (30) days written notice. Landlord shall be entitled to any and all awards and settlements which may be given on account of the reduction in the value of the leasehold, the taking of the fee or otherwise and Tenant shall have no claim against Landlord for the value of any unexpired portion of the Lease Term.

24. PARKING AND COMMON AREAS.
(a) Landlord covenants that an area approximately equal to the Common Areas as shown on the attached Exhibit D shall be at all times available for the non-exclusive use of Tenant during the full Lease Term or any extension, provided that the condemnation or other taking by any public authority, or sale in lieu of condemnation, of any or all of such Common Areas shall not constitute a violation of this covenant. Landlord reserves the right to change the entrances, exits, traffic lanes and the boundaries and locations of such Common Areas, provided, however, that regardless of this Section 24, those areas shall at all times be substantially equal or equivalent to that shown on the attached Exhibit D.
(b) Landlord shall keep the automobile parking and Common Areas in a neat, clean and orderly condition and shall repair any damage to the facilities, but all expenses in connection with said Common Areas shall be charged and prorated in the manner as set forth in Section 4. (c) For the use and benefit of Tenant, its agents, employees, customers, licensees and sub-tenants, Tenant shall have the non-exclusive right in common with Landlord and other present and future owners, tenants and their agents, employees, customers, licensees and sub-tenants to use the appropriate Common Areas during the entire Lease Term, or any extension of the Lease, for ingress and egress, and automobile parking.
(d) Tenant, in the use of said Common Areas, agrees to comply with such reasonable rules, regulations and charges for parking as Landlord may adopt from time to time for the orderly and proper operation of said Common Areas. Such rules may include but shall not be limited to the following: (1) the restricting of Tenant parking to a limited, designated area or areas; and (2) the regulation of the removal, storage and disposal of Tenant’s refuse and other rubbish at the sole cost and expense of Tenant.

25. SIGNS.

Tenant may affix and maintain upon the glass panes and supports of the show windows and within twelve (12) inches of any window and upon the exterior walls of the Premises only such signs, advertising placards, names, insignia, trademarks and descriptive material as shall have first received the written approval of Landlord as to type, size, color, location, copy nature and display qualities. In no case shall Tenant affix any sign to the roof.

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26. DISPLAYS.

Tenant will provide and install exhibits to be placed in the display window as depicted on Exhibit B. The display window exhibit shall be changed at least semi-annually and Tenant will maintain the interior of the display window. Tenant may not display, store, or sell merchandise outside the defined exterior walls and permanent doorways of the Premises. Tenant further agrees not to install or use any exterior lighting, sound speakers or any audio electronic equipment which may be heard or seen outside the Premises.

27. HOURS OF BUSINESS.

An important purpose of this lease is to use the Premises to contribute to an active community vitality in the Heart of Orinda area. Visible activity and traffic to and from the Premises is therefore desirable to the City. For that reason, and subject to the provisions of Section 22, Tenant shall continuously during the entire Lease Term conduct and carry on Tenant’s business in the Premises and shall keep the Premises open for business and cause Tenant’s business to be conducted at the Premises at least fifteenour (154) hours each monthweek, generally from 12 p.m. to 54 p.m. on ThursdayFridays and 10 a.m. to 1 p.m. on the last Saturday on each month, with additional hours as requested by the public by appointment; provided, however, that this provision shall not apply if the Premises should be closed and the business of Tenant temporarily discontinued on account of strikes, lockouts or similar causes beyond the reasonable control of Tenant. Landlord shall have the right to require hours of operation which are more than those stated above. If Landlord and Tenant are not able to agree on required hours of operation, the Landlord shall have the right to terminate the lease.

28. GENERAL PROVISIONS.
(a) Attachments. All attachments are incorporated into this document as though set forth completely in it.
(b) Waiver. The waiver by Landlord of any term, covenant or condition of this Lease shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition of this Lease. The subsequent acceptance of payments due by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such preceding default at the time of acceptance of such payments due.
(c) Joint Obligation. If there is more than one Tenant, the obligations of this Lease shall be joint and several.
(d) Marginal Headings. The marginal headings and section titles to the sections of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part. (e) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.
(f) Successors and Assigns. The covenants and conditions of this lease, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and alleged assigns of the parties.

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(g) Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum may be recorded at the request of, or with the permission of, Landlord. (h) Quiet Possession. Upon Tenant’s paying the payments due and observing and performing all of the covenants, conditions and provisions on Tenant’s part to be observed and performed, Tenant shall have quiet possession of the Premises for the entire Lease Term, subject to all the provisions of this Lease.
(i) Late Charges. Tenant acknowledges that late payment by Tenant to Landlord of payments due or other sums due will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises, and attorneys’ fees and costs.

Accordingly, if any installment of payments due or any sum due from Tenant shall not be received by Landlord’s designee within ten (10) days after written notice that the amount is past due, then Tenant shall pay to Landlord a late charge equal to the maximum amount permitted by law (and in the absence of any governing law, ten percent (10%) of such overdue amount), plus any attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay payments due and/or other charges when due. The parties agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the late payment by Tenant.

Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies in this Lease.
(j) Prior Agreements. This Lease contains all of the agreements of the parties with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties.
(k) Inability to Perform. This Lease and the obligations of Tenant shall not be affected or impaired because Landlord is unable to fulfill any of its obligations or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of Landlord.
(l) Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision and such other provision shall remain in full force and effect.
(m) Cumulative Remedies. No remedy or election in this Lease shall be deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity. (n) Choice of Law. This Lease shall be governed by the laws of the State of California. (o) Attorneys’ Fees. In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party shall be entitled to recover its expenses and costs, including its attorneys’ fees and expert witness fees in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable.

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(p) Sale of Premises by Landlord. In the event of any sale of the Premises by Landlord, Landlord shall be and is entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring after the consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of Landlord under this Lease. (q) Subordination; Attornment. Upon request of Landlord, Tenant will in writing subordinate its rights under this lease to the lien of any mortgage or deed of trust, to any bank, insurance company or other lending institution, now or later in force against the Premises, and to all advances made or later to be made on the security for such advances. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by Landlord covering the Premises, Tenant shall become the tenant of the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. Regardless of the provisions of this section 28(q), so long as Tenant is not in default, this Lease shall remain in full force and effect for the full term. (r) Notices. Wherever this Lease requires or permits notice or demand to be given by either party to the other, such notice or demand shall be in writing and given or served, either personally or in writing forwarded by certified mail, return receipt requested, addressed to the parties at the addresses specified in Sections 3(c) and (g). Either party may change such address by written notice to the other.
(s) Tenant’s Statement (Estoppel Certificate). Tenant shall at any time and from time to time, upon not less than three days prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect), and the date to which the payment and other charges are paid in advance, if any, and (b) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord, or specifying such defaults if any are claimed, and (c) setting forth the date of commencement of payments due and expiration of the Lease Term. Any such statement may be relied upon by the prospective purchaser or encumbrance of all or any portion of the real property of which the Premises are a part.

29. COMPLIANCE.

The parties agree to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement, including, but not limited to, the 1964 Civil Rights Act and all amendments, the Foreign Investment In Real Property Tax Act, the Comprehensive Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act.

30. SHARED MEETING/WORK SPACE.

Landlord agrees that Space 108 as shown on Exhibit C will be available as a workspace for the Tenant on a space available basis as scheduled by the City.

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31. TENANT FINANCIAL STATEMENTS.

Tenant, upon request by Landlord, shall provide to Landlord current financial statements for the nonprofit corporation.

32. AUTHORITY OF TENANT
Tenant represents and warrants that the individual executing this Lease on behalf of the corporation has full authority to do so and that this Lease binds the corporation.

33. BINDING ARBITRATION
Any dispute or claim arising out of this Lease shall be determined by arbitration pursuant to the provisions of the Code of Civil Procedure sections 1280 et seq. or such law then in force in California governing arbitration, with any rules of procedure not set out in such law to be established by a professional arbitration association. If the parties are unable to agree on an arbitrator, each party shall select an arbitrator within 15 days after a demand for arbitration by any party, with a third arbitrator to be selected jointly by the two arbitrators within 15 days after the original two arbitrators are selected. The parties shall share equally in the costs of the arbitration.

NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY

CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE

SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND

APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION. IF YOU REFUSE TO SUBMIT TO

ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO

ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO

SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION TO NEUTRAL ARBITRATION. _____________ Landlord by: __________________________________________ _____________ Tenant by: __________________________________________ LANDLORD: TENANT:

By: By:

David, Biggs, City Manager Orinda Historical Society
Date:__________ _____Alison Burns________________,
President
Date:__________
Attest:

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By:

Sheri Smithpediacci, City Clerk
Approved as to form:

By:

Osa L. Wolff, City Attorney
CONSULT YOUR ATTORNEY. If this Lease has been filled in it has been prepared for submission to your attorney for his or her approval. No representation or recommendation is made by the City of Orinda or its agents or employees as to the legal sufficiency, legal effect, or tax consequences of this Lease.
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Staff Report
Agenda Item: F.6
Date: May 9, 2023
Department: Parks and Recreation
AGENDA TITLE: New Retail Lease Agreement with So Jin Kim (dba Caffe Teatro) for space at the Orinda Library
RECOMMENDATION:

Authorize the City Manager to execute on behalf of the City a new 3-year Retail Lease agreement with So Jin Kim (dba Caffe Teatro) for space at the Orinda Library.

BACKGROUND:

Effective November 1, 2017, the City of Orinda entered into a retail lease agreement with So Jin Kim dba Caffe Teatro. The City of Orinda has had a retail lease agreement with So Jin Kim since 2001. The space provided is approximately 635 square foot retail space, known as unit 113, at the Orinda Library.

The initial term of the 2017 lease expired on June 30, 2020, and the tenant exercised the option to renew the lease for an additional three-year period, to June 30, 2023. The rate has adjusted on July 1st of each year based on a formula that uses the annual change in the CPI plus 0.5%. Under the terms of the agreement, there is a minimum annual increase of 2% and a maximum increase of 5%. The rental rate effective July 1, 2022 was $3,842.93 per month.

DISCUSSION:

The operation of Caffe Teatro has been a good use of the space and it serves the community well and the City is pleased with the tenant’s operation of the Library café and would like to enter into a new retail lease agreement. As provided in the previous leases, the rent has increased every year. As such, the current monthly rent exceeds the going market rate. Therefore, the initial 3-year term of the new lease, with an effective date of July 1, 2023, will not include a rent increase. The term will expire on June 30, 2026.

This new lease with So Jin Kim again allows, at the Tenants option, the ability to renew the lease for a three-year term, expiring June 30, 2029. Should the tenant choose to exercise the option to renew the lease for an additional three-year period, the rate will return to being adjusted on July 1st of each year based on a formula that uses the annual change in the CPI plus 0.5%, and in which there is a minimum annual increase of 2% and a maximum increase of 5%.

Other aspects of the previous lease agreement remain basically unmodified.

Attachment A is the Redline Comparison Proposed Caffe Teatro Retail Lease to Previous Lease.

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FISCAL IMPACT:

The new Lease will provide revenue of approximately $138,345 over the next three years.

ATTACHMENTS:

A. Redline Comparison Proposed Caffe Teatro Retail Lease to Previous Lease Respectfully Submitted by:

Todd Trimble
Director of Parks and Recreation
Prepared By: Todd Trimble, Director of Parks and Recreation Approved by:

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Cafe Teatro Retail Lease – Orinda Library
Space 113

1. PARTIES.

This Lease, dated as of the date of the last signature, is made by and between the City of Orinda (“Landlord”) and So Jin Kim dba Caffe Teatro (“Tenant”). Tenant is independent of the City and is solely responsible for its acts or omissions. Tenant (including its agents, servants, and employees) is not City’s agent, employee or representative for any purpose.

2. LEASE OF PREMISES.
(a) Landlord leases to Tenant and Tenant leases from Landlord the Premises shown on Exhibit A and further described in Section 3(i) for the purpose of operating a coffee house/cafe. (b) This Lease is subject to the terms, covenants and conditions set forth in this document and each party agrees as a material part of the consideration for this Lease to keep and perform each and all of its terms, covenants, and conditions.
(c) This Lease is also subject to the terms and provisions of the Lease-Option and the Ground Lease (between the City of Orinda and The Friends of the Orinda Library) governing the Orinda Library building and related facilities, including the Premises and its environs. To the extent that this Lease is inconsistent with either of those leases, the Lease-Option and the Ground Lease shall control the rights and obligations of the parties to this Lease and shall supersede this Lease. The terms of the Lease-Option and the Ground Lease are therefore incorporated into this lease by this reference.

3. DEFINITIONS.

As used in this Lease, the following terms have the following meanings:
(a) Common Areas: All spaces, equipment, and facilities in the areas of the Orinda Library shown on Exhibit A other than the Premises, the premises of other tenants, the auditorium and the space occupied by the operating library and its support services. (b) Ground Lease: The lease dated October 7, 2001, between the City of Orinda, lessor, and The Friends of the Orinda Library, lessee, for use of property owned by the City for the location of the new Orinda Library and related facilities.
(c) Index (Section 5(d)): The percentage change in the previous February to February U.S.

Department of Bureau of Labor Statistics Consumer Price Index (CPI) for the San FranciscoOakland-San Jose - Urban Wage Earners, plus an additional 0.5%. For example, if the CPI increased

3.2% then the index used in section 5(d) would be 3.7%. (d) Landlord’s Mailing Address: City of Orinda, 22 Orinda Way, Orinda, CA 94563, Attention: City Manager.

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(e) Lease-Option: The lease dated October 7, 2001, between The Friends of the Orinda Library, lessor, and the City of Orinda, lessee, for use and operation of the Orinda Library building and related facilities.
(f) Lease Term: The Lease Term shall commence as of the Lease Term Commencement Date and shall continue to June 30, 20260.
(g) Lease Term Commencement Date: See Section 4 below.
(h) Premises: That portion of the Orinda Library containing approximately 635 square feet of floor area, shown by diagonal lines on Exhibit A and commonly designated as space/unit 113, retail space.
(i) Rental Adjustment Date (Section 5(d)): July 1st of each calendar year following the execution beginning with a renewal of this Lease under Section 3(j) below. (j) Option for Renewal: Tenant has one (1) three-year option to renew this lease at a rent subject to adjustments under Section 5(d) below, commencing with the first month of renewal,to be agreed between Landlord and Tenant, not to exceed market rent. Tenant must exercise its right by written notification (the “Notice of Exercise”) to Landlord not less than 120 days prior to expiration of the term hereof.
(k) Orinda Library: The building of which the Premises is a part and any other buildings and improvements on the real property ("“Property"”) located at 26 Orinda Way and further described on Exhibit A.
(l) Tenant’s Mailing Address: P.O. Box 66, Orinda, CA 94563. (m) Tenant’s Proportionate Share: 3%. This share is the percentage equivalent of a fraction, the numerator of which is the rentable area of the Premises and the denominator of which is the total rentable area of the buildings in the Orinda Library available for the use and occupancy by tenants, as determined by Landlord from time to time on a consistent basis.

4. LEASE TERM AND COMMENCEMENT DATE.

The commencement of this lease shall be July November 1, 202317. The Lease Term shall be until June 30, 20260, as that term is defined above. Tenant shall have one (1) three-year Option to Renew, as that term is defined above.

5. MONTHLY RENT AND ADJUSTMENTS TO MONTHLY
RENT FORLEASE RENEWAL.
(a) Tenant agrees to pay to Landlord $3,842.93208.33 (Three Thousand Two Hundred and eight dollars and 33/100_____ (“the Monthly Rent”), without notice or demand, in advance, on or before the first day of each and every successive calendar month during the Lease Term, subject to the rest of this Section.
(b) Rent for any period which is for less than one (1) month shall be a prorated portion of the monthly installment herein based upon a thirty (30) day month. Rent shall be paid to Landlord, without F.6.a
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deduction or offset, in lawful money of the United States of America and at such place as Landlord may from time to time designate in writing.
(c) Tenant shall pay as additional rent all sums required to be paid pursuant to the terms of this Lease.

All amounts required to be paid by Tenant under this Lease may be collectively referred to as “rent” or “rental.”
(d) The Monthly Rent shall be adjusted commencing on the First Rental Adjustment Date and each subsequent Rental Adjustment Date. Adjustments, if any, shall be based only upon increases (if any) in the Index.
(i) As of each Rental Adjustment Date, the Monthly Rent payable monthly shall be determined by increasing the initial Monthly Rent by a percentage equal to the percentage increase, if any, in the Index. If there is no increase in the Index, or the increase is less than 2%, the annual Monthly Rent Adjustment for that year shall be an increase of 2%.

Likewise, if the increase in the Index is over 5%, the annual Monthly Rent Adjustment for that year shall be 5%. In all cases, an adjustment upward shall result in a Monthly Rent no less than 2% or more than 5% of the prior year’s rent.
(ii) When the Monthly Rent payable as of each Rental Adjustment Date is determined, Landlord shall promptly give Tenant written notice of such adjusted Monthly Rent. The Monthly Rent as so adjusted from time to time shall be the “Monthly Rent” for all purposes under this Lease.
(iii) If at any Rental Adjustment Date the Index no longer exists in the form described in this Lease, Landlord may substitute any substantially equivalent official index published by the Bureau of Labor Statistics or its successor. Landlord shall use any appropriate conversion factors to accomplish such substitution. The substitute index shall then become the “Index.”

6. SECURITY DEPOSIT.

Tenant has deposited with Landlord a security deposit in the amount of $3,175.00 (“Security Deposit”).

This sum shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If Tenant defaults with respect to any provision of this Lease, including, but not limited to the provisions relating to the payment of rent, Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of the deposit is so used or applied Tenant shall, within five (5) days after written demand, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant’s failure to do so shall be a default under this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance remaining shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest under this lease) within ten (10) days following expiration of the Lease Term. In the event of termination of Landlord’s interest in this Lease, Landlord shall transfer the F.6.a
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Security Deposit to Landlord’s successor in interest and after that shall be relieved of all responsibility with respect to the Security Deposit.

7. USES & OPERATIONS.

Any use other than a coffee house/café is prohibited. Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything on or in the premises which will in any way increase the existing rate of or affect any fire or other insurance upon the Orinda Library or any of its contents, or cause a cancellation of any insurance policy covering the Orinda Library or any of its contents. Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Orinda Library or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. Tenant shall not permit litter and other refuse in and around the Premises. For this purpose, Tenant shall provide and maintain sufficient waste containers in convenient locations near the Premises. Tenant shall follow the procedures established by Landlord at the Orinda Library for the separation and disposal of recyclables, compostables and other waste. Additionally, Tenant may from time to time utilize the common area outside the Premises for customer seating subject to regulations as determined by the Landlord. It is understood that the Tenant shall be required to move all Tenant furniture into the Premises at the close of business each day and keep this area free and clear of all litter and spills.

8. COMPLIANCE WITH LAW.

Tenant shall not use the Premises, or permit anything to be done in or about the Premises, which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may later be in force and with the requirements at any board of fire underwriters or other similar bodies now or hereafter constituted relating to or affecting the condition, use or occupancy of the Premises, excluding structural changes not related to or affected by Tenant’s improvements or acts. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of that fact as between Landlord and Tenant.

9. ALTERATIONS AND ADDITIONS.

Tenant shall not make or allow any alterations, additions, or improvements to or of the Premises without first obtaining the written consent of Landlord. Any alterations, additions, or improvements to or of the Premises, including but not limited to wall covering, paneling and built-in cabinet work, but excepting movable furniture and trade fixtures, shall at once become a part of the realty and belong to Landlord and shall be surrendered with the Premises. In the event Landlord consents to any alterations, additions, or improvements to the Premises by Tenant, the same shall be made by Tenant at Tenant’s sole cost and expense, in a good and workmanlike manner in accordance with all applicable laws (including laws relating to the use of hazardous materials such as asbestos-containing materials) and diligently completed. At the end of the lease, the tenant shall quickly remove any alterations, additions, or improvements made by Tenant which the Landlord designates to be removed at that time. The removal F.6.a
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shall be at Tenant’s sole cost and expense. Also, Tenant shall quickly repair any damage to the Premises caused by such removal at its sole cost and expense.

10. REPAIRS & MAINTENANCE.
(a) By entering the Premises, Tenant shall be deemed to have accepted the Premises as being in good, sanitary order, condition, and repair. Tenant shall, at Tenant’s sole cost and expense, keep the Premises in good condition and repair (except for Landlord’s obligations) including without limitation, the maintenance, replacement and repair of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and lighting fixtures and conduits, heating and air conditioning system (when there is an air conditioning system). Tenant shall, in addition to all other obligations described herein, steam clean the granite tile flooring inside the Premises twice annually. Tenant shall, upon the expiration or sooner termination of this Lease, surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear and damage from causes beyond the reasonable control of Tenant excepted. Any damage to adjacent premises caused by Tenant’s use of the Premises shall be repaired at the sole cost and expense of Tenant. (b) Regardless of other terms of this lease, Landlord at its expense shall maintain and repair the structural portions of the Orinda Library, including the exterior walls and the structural portions of the roof, unless such maintenance and repair are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees, invitees, or any damage caused by breaking and entering, in which case Tenant shall pay to Landlord the actual cost of such maintenance and repairs. Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant.

Except as provided in Section 26, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations, or improvements in or to any portion of the Orinda Library or the Premises or in or to fixtures, appurtenances and equipment located there. Tenant waives the right to make repairs at Landlord’s expense under any law, statute, or ordinance now or later in effect.

11. LIENS.

Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by or on behalf of Tenant.

Landlord may require, at Landlord’s sole option, that Tenant shall provide to Landlord, at Tenant’s sole cost and expense, a lien and completion bond in an amount equal to one and one-half (1-1/2) times the estimated cost of any improvements, additions, repairs or alterations in the Premises which Tenant desires to make, to insure Landlord against any liability for mechanics’ and materialmen’s liens and to insure completion of the work.

12. ASSIGNMENT AND SUBLETTING.

Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest in it, and shall not sublet any part of the Premises, or any appurtenant right or privilege, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the Premises without first obtaining the written consent of Landlord. A consent to an assignment, subletting, occupation or use by any other person shall not be deemed to be a F.6.a
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consent to any other assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any such assignment or subletting without such consent shall be void, and shall, at the option of Landlord, constitute a default under the terms of this Lease. In the event that Landlord shall consent to a sublease or assignment hereunder, Tenant shall pay Landlord reasonable fees, not to exceed Five Hundred and No/100ths Dollars ($500.00), incurred in connection with the processing of documents necessary to giving consent. Additionally, if the Landlord agrees to a sublease or assignment, the difference between Monthly Rent and the sublease rental, if any, shall be paid to the Landlord.

13. HOLD HARMLESS.
(a) Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant’s use of the Premises or from the conduct of its business or from any activity, work, or other things done, permitted or suffered by Tenant in or about the Premises, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any officer, agent, employee, guest, or invitee of Tenant, and from all costs, attorneys’ fees, and liabilities incurred in or about the defense of any such claim or any action or proceeding brought in relation to this lease. If any action or proceeding is brought against Landlord by reason of such claim, Tenant upon notice from Landlord shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, assumes all risk of damage to property or injury to persons in, on or about the Premises, from any cause other than Landlord’s negligence; and Tenant waives all claims against Landlord relating to such damages and injuries. Tenant shall give prompt notice to Landlord in case of casualty or accidents in the Premises.
(b) Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Orinda Library or from the pipes, appliances or plumbing works in that location or from the roof, street or subsurface or from any other place resulting from dampness or any other cause, unless caused by or due to the negligence of Landlord, its agents, servants or employees.

Landlord or its agents shall not be liable for interference with the light, air, or for any latent defect in the Premises.

14. SUBROGATION.

As long as their respective insurers so permit, Landlord and Tenant mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage and other property insurance policies existing for the benefit of the respective parties. Each party shall apply to its own insurer to obtain the waivers. Each party shall obtain any special endorsements, if required by its insurer to show compliance with the waiver.

15. INSURANCE.

Tenant shall, at Tenant’s expense, maintain Workers’ Compensation insurance and employer’s liability insurance in accordance with California law. In addition, Tenant shall require each subcontractor F.6.a
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approved by the City to similarly maintain workers’ compensation insurance and employer’s liability insurance in accordance with California law.

Tenant shall, at Tenant’s expense, obtain and keep in force during the Lease Term a policy of commercial general liability insurance (sometimes known as comprehensive public liability insurance) insuring Landlord and Tenant (and, if requested by Landlord, Landlord’s lender and property manager) against any liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the ownership, use, occupancy or maintenance of the Premises and all appurtenant areas.

Such insurance shall be in the amount of not less than $1,000,000 per occurrence. The limit of any such insurance shall not, however, limit the liability of Tenant under this Lease. Tenant may provide this insurance under a blanket policy, provided that said insurance shall have a Landlord’s protective liability endorsement attached. If Tenant shall fail to procure and maintain this insurance, Landlord may, but shall not be required to, procure and maintain same, but at the expense of Tenant. (a) Insurance required by this Lease shall be by companies rated A:XlI or better as set forth in the most current “Best’s Key Rating Guide.”
(b) The insurance policy shall name Landlord, its officers, employees and volunteers as additional insureds.
(c) No policy shall be cancelable or subject to reduction of coverage. (d) All such policies shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry.

Tenant shall deliver certificates evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to Landlord. In addition, Tenant shall provide an endorsement itemizing the requirements set forth in (b), (c), and (d) of this section 17 and setting forth the insurer’s waiver of rights of subrogation under Paragraph 16 above.

16. UTILITIES.

Tenant shall pay for all water, gas, heat, light, power, sewer charges, telephone service and all other services and utilities supplied to the Premises, together with any taxes. Any such services as of the date of this lease that are not separately metered to Tenant, a reasonable proportion of the estimated costs have been included by the Landlord in the calculation of the Monthly Rent..

17. PERSONAL PROPERTY TAXES.

Tenant shall pay, or cause to be paid, before delinquency any and all taxes levied or assessed, including but not limited to Possessory Interest Taxes, and which become payable during the Lease Term upon all of Tenant’s leasehold improvements, equipment, furniture, fixtures and any other personal property located in the Premises. In the event any or all of Tenant’s leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property, Tenant shall pay to Landlord its share of such taxes within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant’s property.

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18. RULES AND REGULATIONS.

Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate for the operation of the Orinda Library and related facilities and surrounding areas. The rules and regulations shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any rules and regulations by any other tenants or occupants.

19. HOLDING OVER.

If Tenant remains in possession of the Premises or any part of the Premises after the expiration of the Lease Term with the express written consent of Landlord, such occupancy shall be a tenancy from month to month at a rental in the amount of 125% of the last Monthly Rent, plus all other charges payable under this Lease, and on all the Lease terms applicable to a month to month tenancy.

20. ENTRY BY LANDLORD.

Landlord reserves, and shall at any and all times during business hours have, the right to enter the Premises to inspect them, to submit the Premises to prospective purchasers or tenants, to post notices of non-responsibility, to repair the Premises and any portion of the Orinda Library of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of rent, and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be unreasonably blocked by such structures, and further providing that the business of Tenant shall not be interfered with unreasonably. Tenant waives any claim for damages or for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned as a result of Landlord actions and omissions under this paragraph. Landlord at any and all times shall have the right to use any and all means which Landlord may deem proper to open Tenant’s doors in an emergency in order to obtain entry to the Premises, without liability to Tenant except for any failure to exercise due care for Tenant’s property. Any entry to the Premises obtained by Landlord by any of these means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion.

21. TENANT’S DEFAULT.

In addition to other provisions of this lease, the occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant. (a) The vacating or abandonment of the Premises by Tenant. (b) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant, as and when due, where such failure shall continue for a period of three (3) days after written notice by Landlord to Tenant.
(c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than described in (b), above, where such failure shall continue for a period of thirty (30) days after written notice by Landlord to Tenant; provided, however, that if the nature of Tenant’s default is such that more than thirty (30) days are F.6.a
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reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) day period and then diligently prosecutes such cure to completion.
(d) Any general assignment or general arrangement for the benefit of creditors of Tenant; or the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days.

22. REMEDIES UPON TENANT’S DEFAULT.

In the event of any default or breach by Tenant, Landlord may at any time after that, in its sole discretion, do any of the following, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach:
(a) Terminate Tenant’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s default including, but not limited to, the cost of recovering possession of the Premises; expenses of reletting, including necessary renovation and alteration of the Premises; reasonable attorneys’ fees; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent and other charges and Adjustments for the balance of the Lease Term after the time of such award exceeds the amount of such loss for the same period that Tenant proves could be reasonably avoided; and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease. Unpaid installments of rent or other sums shall bear interest from the date due at the maximum legal rate; or
(b) Maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover the rent and any other charges and Adjustments as may become due; or (c) Pursue any other remedy or combination of remedies now or later available to Landlord under the laws of the state of California.

23. DEFAULT BY LANDLORD.

Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have been furnished previously to Tenant in writing, specifying how Landlord has failed to perform such obligation. If the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such F.6.a
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thirty (30) day period and diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as a result of Landlord’s default and Tenant’s remedies shall be limited to damages or an injunction.

24. RECONSTRUCTION.

N.B. The provisions of this section, like all other provisions of this Lease, are subject to and conditioned on the provisions of the Lease-Option and the Ground Lease as more particularly described in Section 2(c) above.
(a) In the event the Premises are damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to immediately repair same, and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction of the Monthly Rent from the date of damage and while such repairs are being made, such proportionate reduction to be based upon the extent to which the damage and making of such repairs shall reasonably interfere with the business carried on by Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of rent. (b) In the event the Premises are damaged to any extent as a result of any cause other than the perils covered by fire and extended coverage insurance, Landlord shall have the option: (1) to repair, reconstruct or restore the Premises, in which event this Lease shall continue in full force and effect but the Monthly Rent shall be proportionately reduced as provided in this Section during the period of such repair, reconstruction or restoration; or (2) to give notice to Tenant at any time within sixty (60) days after such damage, terminating this Lease as of the date specified in such notice, which date shall be no more than thirty (30) days after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of Tenant in the Premises shall terminate on the date so specified in such notice and the Monthly Rent, reduced by a proportionate reduction, based upon the extent, if any, to which such damage interfered with the business carried on by Tenant in the Premises, shall be paid up to date of said such termination. (c) Anything to the contrary contained in this Section 26 notwithstanding, Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under this Section occurs during the last twenty-four months of the Lease Term or any extension.
(d) Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacements of any leasehold improvements, fixtures, or other personal property of Tenant.

25. EMINENT DOMAIN.

N.B. The provisions of this section, like all other provisions of this Lease, are subject to and conditioned on the provisions of the Lease-Option and the Ground Lease as more particularly described in Section 2(c) above.

If all or any portion of the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, either party shall have the right, at its option, within sixty (60) days after said taking, to terminate this Lease upon thirty (30) days written notice. Landlord shall be entitled to any and all awards and settlements which may be given on account of the reduction in the value of the F.6.a
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leasehold, the taking of the fee or otherwise and Tenant shall have no claim against Landlord for the value of any unexpired portion of the Lease Term.

26. PARKING AND COMMON AREAS.
(a) Landlord covenants that an area approximately equal to the Common Areas as shown on the attached Exhibit A shall be at all times available for the non-exclusive use of Tenant during the full Lease Term or any extension, provided that the condemnation or other taking by any public authority, or sale in lieu of condemnation, of any or all of such Common Areas shall not constitute a violation of this covenant. Landlord reserves the right to change the entrances, exits, traffic lanes and the boundaries and locations of such Common Areas, provided, however, that regardless of this Section 28, those areas shall at all times be substantially equal or equivalent to that shown on the attached Exhibit A.
(b) Landlord shall keep the automobile parking and Common Areas in a neat, clean and orderly condition and shall repair any damage to the facilities, but all expenses in connection with said Common Areas shall be charged and prorated in the manner as set forth in Section 8. (c) For the use and benefit of Tenant, its agents, employees, customers, licensees and sub-tenants, Tenant shall have the non-exclusive right in common with Landlord and other present and future owners, tenants and their agents, employees, customers, licensees and sub-tenants to use the appropriate Common Areas during the entire Lease Term, or any extension of the Lease, for ingress and egress, and automobile parking.
(d) Tenant, in the use of said Common Areas, agrees to comply with such reasonable rules, regulations and charges for parking as Landlord may adopt from time to time for the orderly and proper operation of said Common Areas. Such rules may include but shall not be limited to the following: (1) the restricting of employee parking to a limited, designated area or areas; and (2) the regulation of the removal, storage and disposal of Tenant’s refuse and other rubbish at the sole cost and expense of Tenant.

27. SIGNS.

Tenant may affix and maintain upon the glass panes and supports of the show windows and within twelve (12) inches of any window and upon the exterior walls of the Premises only such signs, advertising placards, names, insignia, trademarks and descriptive material as shall have first received the written approval of Landlord as to type, size, color, location, copy nature and display qualities. In no case shall Tenant affix any sign to the roof. Tenant shall, however, erect one sign on the front of the Premises not later than the date Tenant opens for business. The design of such sign shall be prepared by Tenant in accordance with Landlord’s sign regulations and shall be subject to the prior approval of Landlord.

28. DISPLAYS.

Tenant may not display, store, or sell merchandise outside the defined exterior walls and permanent doorways of the Premises. Tenant further agrees not to install any exterior lighting, amplifiers or similar devices or use in or about the Premises any advertising medium which may be heard or seen outside the Premises, such as flashing lights, searchlights, loudspeakers, phonographs or radio broadcasts.

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29. AUCTIONS.

Tenant shall not conduct or permit to be conducted any sale by auction in, on or from the Premises whether the auction is voluntary, involuntary, pursuant to any assignment for the payment of creditors or pursuant to any bankruptcy or other insolvency proceeding.

30. HOURS OF BUSINESS.
(a) Subject to the provisions of Section 26, Tenant shall continuously during the entire Lease Term conduct and carry on Tenant’s business in the Premises and shall keep the Premises open for business and cause Tenant’s business to be conducted at the Premises from 6:30 a.m. to 6 p.m.

Monday through Thursday, 6:30 a.m. to 5 p.m. Friday, 8 a.m. to 5 p.m. Saturday, and 8 a.m. to 4 p.m. Sunday; provided, however, that this provision shall not apply if the Premises should be closed and the business of Tenant temporarily discontinued on account of strikes, lockouts or similar causes beyond the reasonable control of Tenant. Tenant may request and Landlord in its sole discretion may grant changes to the hours of operation. Tenant shall keep the Premises adequately stocked with merchandise and with sales personnel sufficient to care for the patronage and to conduct the business in accordance with sound business practice. (b) In the event of breach by Tenant of any of the conditions contained in this Section 32, Landlord shall have, in addition to any and all remedies provided in this document, the right at its option to collect not only the Monthly Rent herein provided, but additional rent at the rate of one-thirtieth (1/30) of the Monthly Rent for each and every day that the Tenant shall fail to conduct its business as provided; said additional rent shall be deemed to be in lieu of any percentage rent that might have been earned during such period of Tenant’s failure to conduct its business as required in this document.

31. GENERAL PROVISIONS.
(a) Attachments. All attachments are incorporated into this document as though set forth completely in it.
(b) Waiver. The waiver by Landlord of any term, covenant or condition of this Lease shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition of this Lease. The subsequent acceptance of rent by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such preceding default at the time of acceptance of such rent.
(c) Joint Obligation. If there is more than one Tenant, the obligations of this Lease shall be joint and several.
(d) Marginal Headings. The marginal headings and section titles to the sections of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part. (e) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.

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(f) Successors and Assigns. The covenants and conditions of this lease, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties.
(g) Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum may be recorded at the request of, or with the permission of, Landlord. (h) Quiet Possession. Upon Tenant’s paying the rent and observing and performing all of the covenants, conditions and provisions on Tenant’s part to be observed and performed, Tenant shall have quiet possession of the Premises for the entire Lease Term, subject to all the provisions of this Lease.
(i) Late Charges. Tenant acknowledges that late payment by Tenant to Landlord of rent or other sums due will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises, and attorneys’ fees and costs.

Accordingly, if any installment of rent or any sum due from Tenant shall not be received by Landlord’s designee within ten (10) days after written notice that the amount is past due, then Tenant shall pay to Landlord a late charge equal to the maximum amount permitted by law (and in the absence of any governing law, ten percent (10%) of such overdue amount), plus any attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay rent and/or other charges when due. The parties agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the late payment by Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies in this Lease.
(j) Prior Agreements. This Lease contains all of the agreements of the parties with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties.
(k) Inability to Perform. This Lease and the obligations of Tenant shall not be affected or impaired because Landlord is unable to fulfill any of its obligations or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of Landlord.
(l) Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision and such other provision shall remain in full force and effect.
(m) Cumulative Remedies. No remedy or election in this Lease shall be deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity. (n) Choice of Law. This Lease shall be governed by the laws of the State of California.

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(o) Attorneys’ Fees. In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party shall be entitled to recover its expenses and costs, including its attorneys’ fees and expert witness fees in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable. (p) Sale of Premises by Landlord. In the event of any sale of the Premises by Landlord, Landlord shall be and is entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring after the consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of Landlord under this Lease. (q) Subordination; Attornment. Upon request of Landlord, Tenant will in writing subordinate its rights under this lease to the lien of any mortgage or deed of trust, to any bank, insurance company or other lending institution, now or later in force against the Premises, and to all advances made or later to be made on the security for such advances. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by Landlord covering the Premises, Tenant shall become the tenant of the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. Regardless of the provisions of this section 33(q), so long as Tenant is not in default, this Lease shall remain in full force and effect for the full term. (r) Notices. Wherever this Lease requires or permits notice or demand to be given by either party to the other, such notice or demand shall be in writing and given or served, either personally or in writing forwarded by certified mail, return receipt requested, addressed to the parties at the addresses specified in Sections 3(e) and (m). Either party may change such address by written notice to the other.
(s) Tenant’s Statement (Estoppel Certificate). Tenant shall at any time and from time to time, upon not less than three days prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect), and the date to which the rental and other charges are paid in advance, if any, and (b) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord, or specifying such defaults if any are claimed, and (c) setting forth the date of commencement of rents and expiration of the Lease Term. Any such statement may be relied upon by the prospective purchaser or encumbrance of all or any portion of the real property of which the Premises are a part.

32. COMPLIANCE.

The parties agree to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement, including, but not limited to, the 1964 Civil Rights Act and all amendments, the Foreign Investment In Real Property Tax Act, the Comprehensive Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act.

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33. STORAGE SPACE.

Landlord agrees that the lease includes an additional 80 to 100 square feet of space to tenant for storage for the term of the lease in an area mutually agreed to by Landlord and Tenant in the vicinity of the Premises.

34. SECURITY FOR LEASE, PERMANENT FIXTURE, AND
ARCHITECT FEE LOAN.

In addition to the security deposit in Section 6, Tenant shall provide to Landlord security interest in the form of a UCC filing for the Tenant-installed fixtures with a minimum value of $50,000. In event of a default by Tenant, equipment secured under this paragraph shall revert to Landlord.

35. BROKERS.

Tenant warrants that it has had no dealings with any real estate brokers or agents in connection with the negotiation of this Lease and it knows of no other real estate broker or agent who is entitled to a commission in connection with this Lease.

36. AUTHORITY OF TENANT.

Tenant represents and warrants that the individual executing this Lease on behalf of the corporation has full authority to do so and that this Lease binds the corporation.

LANDLORD: TENANT:

By: By:

David Biggs, City Manager So Jin Kim (dba Caffe Teatro) Date:__________
Date:__________
Attest:

By:

Sheri Smith, City Clerk
Approved as to form:

By:

Osa L. Wolff, City Attorney
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CONSULT YOUR ATTORNEY. If this Lease has been filled in it has been prepared for submission to your attorney for his or her approval. No representation or recommendation is made by the City of Orinda or its agents or employees as to the legal sufficiency, legal effect, or tax consequences of this Lease.

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Staff Report
Agenda Item: F.7
Date: May 9, 2023
Department:

Public Works and
Engineering Services
AGENDA TITLE: Partial Release of Retention to Bay Cities Paving & Grading, Inc. for the 2022 Annual Pavement Rehabilitation Project (Project No.4166 & Project No. 4165) and Moraga Way Pedestrian Pathway Project (Project No. 4168) and Approve Project Budget Changes/Corrections.

RECOMMENDATION:

Staff recommends that the City Council approve the release of $140,000 in retention for the subject Bay Cities Paving and Grading Inc. Contract, and approve Budget Change Form #011-23 for Project No.4166.

BACKGROUND: On July 19, 2022, City Council awarded a contract to Bay Cities Paving and Grading Inc. for the subject projects, for the bid amount of $3,924,314.27.

Per the specification for this project, the City retained 5 percent of the estimated value of the work done. The majority of the work was completed by December 2022, but subsequent severe weather delayed completion of all of the work. Bay Cities intends to complete the work by June 2023.

DISCUSSION:

As of February 16, 2023, the total retention amount is $170,030.77. Per our contract, Bay Cities Paving and Grading can request release of retention at any time after 50 percent of the work is completed, and they recently made that request. The majority of the work was completed by December 2022, but subsequent severe weather delayed completion of all of the work. Bay Cities intends to complete the work by June 2023.

Bay Cities has also provided the required approval of their Surety (Attachment A) to reduce the retention to 5% of the total retention amount. Staff recommends releasing $140,000, which will allow sufficient remaining retention to account for certain corrective work and/or credits for reduced asphalt costs (per specified oil price index fluctuation).

The final remaining retention, after completion of all of the work, will be released after acceptance of the contract by the City Council.

It was recently determined that due to a clerical/typo error in entering and/or revising certain data in Planit CIP software in June 2022 for the CIP Update (used for the Budget), project #4166 expenses from Funds #105 (Measure L Sales Tax), Fund #200 (Gas Tax) and Fund #335 (Road Maintenance Fund) were incorrectly budgeted for fiscal year 2023-24 rather than the current fiscal year 2022-23. It should be noted that in July 2022 that data was corrected in Planit, when it was utilized to determine appropriation needs in order to award the subject Bay Cities contract. In order to correct this, Budget Change Form #011-23 (Attachment B) is necessary to move the estimated expenditures from fiscal year 2023-24 and appropriate them in the current fiscal year. Since fiscal year 2023-24 is outside the current Biennial Budget period (FY F.7
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2021-22 and FY 2022-23), this change is considered an appropriation and City Council approval is needed.

FISCAL IMPACT:

Approving this item will increase budgeted expenditures in Fund #105 (Measure L Sales Tax), Fund #200 (Gas Tax), Fund #335 (Road Maintenance Fund) in fiscal year 2022- 23 by $420,144, $600,000, and $284,988 respectively. Each of these funds has adequate resources available to cover these expenditures in the current fiscal year.

NEXT STEPS: Upon approval of this partial retention release by City Council, staff will process the payment of $140,000.00. Bay Cities will resume work upon stable weather conditions.

ATTACHMENTS:

A. Consent of Surety
B. Budget Change Form #011-23
Respectfully Submitted by:

Scott Christie
Public Works Director
Prepared By: Scott Christie, Public Works Director
Approved by:

F.7
Packet Pg. 168
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22 Orinda Way, Orinda, CA 94563
as setfsrlh in rhe sald Surett's hrd.

II* WTtrIdESS T,VHTREQF,
tlre Sumy has }xer€untorstib rnrd thi$
Aliesil
Seall:
o{ retalnage to the f-ontractor shatr! nCI retrierc the Surety ,OWNER,
January 2023
Tftle
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AIA BSCtMtNrf 67{D?* . COt'lstNI Of SrPETfr{g E[,DISIIOI!,\N OR PA*TIAL RILEASi Of ftETA,NACE " lUNt lg?n 6ilr,p,q6l EBITIIOT{ r filAdB . & l97t r T}lE AI*I*ICAN ,r.r$$IUTE€flfffiffiE(j!5, 1735 NEW YOBX AllE., tlirf, ]tAS]llhtStrON, Df,2A0Oe sP*rc sismrrom-i *
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F.7.a
Packet Pg. 169 Attachment: Consent of Surety (3109 : Bay Cities partial release) CALIFORNIA ACKNOWLEDGMENT ctvtL coDE g 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Contra Costa
On JAN 2.6 ?OT5 Shawndrae N" Johnston, Notary Public
Here lnsert Nome and Title of the Officer
personally appeared Kathleen Earle
Nome(s) of Signe(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. )
ffi I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature hr."-'),"*1 0/"* *hrrPloce Notory Seol ond/or Stomp Above Signature of Notory Public Completing this informotion con deter olterotion of the document or froudulent reottochment of this form to on unintended document.

Description of Attached Document
Title or Type of Document:

Number of Pages:

Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer's Name:
tr Corporate Officer - Title(s): D Corporate Officer - Title(s):
tr Padner- n Limited tr General tr Partner- E Limited tr General tr lndividual X Attorney in Fact n lndividual El Attorney in Fact tr Trustee u Guardian or Conservator E Trustee tr Guardian or Conservator Signer is Representing:
02019 National Notary Association
F.7.a
Packet Pg. 170 Attachment: Consent of Surety (3109 : Bay Cities partial release) TRAYELEHdJT
Trave,lers Casualty and Surety Company of America
Travelers Casualty and Surety Company
St. Paul Fire and I'lar ne Xnsurance Cornpany
Farmi
POWER OF ATTOR'{EY
NN0ltl ALL iMEi'l BY Tl-lES€ PRESEMT$" That Tralelers Casualty and Surety Company of fu'nerica, Travelers Casualiy and Surety Company, St. Paul Fire and l\r'iarine Insurance Company, and Farmington Casualty Company are corporalions duly organized under lhe laws ,of the State of Connecticut {herein coliectively called the "Companies"}" and that the Conpanies do hereby make, constitute ai'rd appoint Kathleen Earle of San Mateo , CA , their true and larvful Attorney{sJ-iri-Fact to Eign, execute. seal and acknowledge li're following bond:

Surety Eond No.; 107655168 Principal: Bay Cities Paving & Grading, lnc.

BR Obligee: City of Orinda
'ProjeCt Description.: 2022 Annual Pavement Rehabilitation Project (Project No. 4166 and clP 41 65) and Moraga Way Pedestrian Pathway Prcject (Project No. 41 68) lN WITNESS IfVHEREOF. ihe Ccfilpanres dlave caused this instrument lo be signed, and their corporate seals to be hereto afiixed, this 21st day ,of April 202t.

State of
ffi'ffiffi@
Connecticut
City of Hartford ss.

On lhis the ?'1st day ol April, 2021. before .me personally appeared Robert L. Raney, who acknowledged himself to be the Senior Vice President cf each of the Companies, and that he. as such, being arrthoriied so ta do. executed the forego{ng instrument for the purposes tlrerein contained by signing on be,hatf of sai'd Cornpanies by himself as a duly authorized officer, !N WTITHESS WHEREOF, I hereunto set rry hand and ofiiclal seal.

My Commission expires the 30th day of June, 2026
Thls Power of ,qttorney is granted un.der and by the authority ol the foliowing ryhich resoluljons are now in fulrl forc€ and effect, readrng as follows.

RESOLVED. th€t the Chairman. the Fresident. any Vice Chairman. any Executive Vice President, any Senior Vice Fresrdent. any Vice Fresideni. any Second Vice P{e€ident, the Treasurer, any A$si$tsnt Treasur'er. the Corporate Secretary or any Assisiant Secretary may appoint Attoilneys-in-Fact arid A,g,ents to act for and on behalf of ihe Cornpany and may give such appointee Euch authority as his or her cer{ificate of authority may prescribe to sign w'ith the Company's narne and seal with the Company's seal bonds, recognizances, contracis of indemnity. and other writings obligatory in the nature of a bond. recognizance, or conditional undertaking. and any of said ofiicers or lhe Board cf Directors at any time may remove any sueh appointee and reyorke the power given hjm o,r iher, and it is
FUR'lfHER RESOLVED" that the Cl'rairman. the President, any Vice Chairman, any Executive Vice President. any Senior Vice President or any Vice President nray delegate all or any part of the fffegorng aulhority to one or !"rore offrcer$ oremployees of this Ccmpany, provided thai each su6h delegation is in writing and a copy thereof is llled in the offrce of the Secretary; and il is FUR-IHER RESOLVED. that any bond. recognizance. contract of lndernnity, or wriling obligatory in the nature of a bond. recognizance, or condilio$al undertakjng shall be vaiid and binding upon the Conrpany when (a) signed by the President. any Vrce Chaurnan. any Execulive Vice Presidenl. any Senior Vice Ptesidenl or any Vice Presrdent any Second Vice President, ihe Treasurer. any Assistanl Treasurer, lhe Corporate Secretary or any A,ssistant Secretary and duly atlested and sealed with the Company's seal by a Secretary or Assisiant Secretary, or (b) duly executed {u'nder seal. rf required) by one or more Atiorneys-rn-Fact and Agents pursuant to the power prescribed rn his or her certrficate or their certificates of authority or by if,ne or more Compa'ny officers pursuanl to a written delegalion oi authority" and it is FURTHER RESOI-VED. that ihe signature of each of the followng officers. President. any Execulive Vrce President, any Senior Vice President, any Vice Pre€ident, any Assislant Vioe President. any Secretary. any Assistant Secretary, and the seal of the Company may be aflixed by facsimile to any Power of Attorne), or to any certiflcate relating tlrereto apporntng Resident Vice Presidents, Resident Assistant Secr€taries or Attorn€ys-in-Fact for pri|lposes only of execuling and attesting bonds and undertakings and other writings obljgatory in ihe nature thereof . and any such Power of ,Attorney or certificate beanng such facsirnile signature orfacsimile seal shail be valrd and binding upon the Company and any such power so executed and certified by suah lacsimtle signatu.re and facsirnile seall shall be valid and bindrng on the Company in the future wth respect to any bond or underslanding to vyhich il as attached
l. Kevin E, llughes. lhe undersigned, Assistant Secrelary of each of the Companies, do hereby ceflify lhat the above and foregoing is a true and coffect copy,of the Power of Attorney execuiled by said Companies. which rernalns in full force and effect.

Bated this 26th day of January , 2023
Raney, Senior Vice Presrdent
,#ffi:,
\ \ eru'c ,l ;
/**f&g Anna P. Nswik. Notary Pubtic \w
rBsolutions adopted by lhe Boards o, Directors of each of the Cornpanies" '#.ffi'ffi@@ To verily fr?e airllrenff€ity of this Power ol Attomey, please call us at 1-800-421-3880.

PrEase refer to tlte aboye-nfln sd Attomet/(sJ -in-Fact and the details af lhe bond to which this PDwer of Attorney ls affac$ed.

Nowik. Notary Public
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Packet Pg. 171 Attachment: Consent of Surety (3109 : Bay Cities partial release)

CITY OF ORINDA
BUDGET CHANGE FORM FISCAL YEAR 2022/2023
Funds Appropriated Yr 2 of Biennial Budget Adopted 6/29/2021 CHANGE FORM # 011-23
New Appropriations (City Council Approval Required): Budget Transfers:

X From Un-Appropriated Reserves From Budgeted Contingent Reserve (Approval Req’d) __ _ Reduction To Adopted Budget

GENERAL FUND
New Revenue ONLY
Between Departments (City Council Approval Req’d)
Other:

BUDGET ACCOUNT
(Revenue / Expense)

INCREASE
AMOUNT

DECREASE
AMOUNT
INCREASE OF BUDGETED EXPENSE IN FY 2022‐2023:
105‐35‐0‐7127‐4166

MEASURE L SALES TAX / PUBLIC WORKS / NO PROGRAM /
CONSTRUCTION / 2022 ANNUAL PAVING PROJECT
$420,144
INCREASE OF BUDGETED EXPENSE IN FY 2022‐2023:
200‐35‐0‐7127‐4166

GAS TAX FUND / PUBLIC WORKS / NO PROGRAM / CONSTRUCTION / 2022 ANNUAL PAVING PROJECT
$600,000
INCREASE OF BUDGETED EXPENSE IN FY 2022‐2023:
335‐35‐0‐7127‐4166

ROAD MAINTENANCE FUND / PUBLIC WORKS / NO PROGRAM /
CONSTRUCTION / 2022 ANNUAL PAVING PROJECT
$284,988

As Presented at the City Council Meeting on: May 9, 2023 #################(Finance Use Only)###################
NOTE: FY 2023 Not In System – NEED TO INCORPORATE WITH MID-CYCLE ADJ Posted By: Date:

REASON FOR BUDGET CHANGE ENTRY: .

Due to clerical/typo error in entering data into Planit CIP software, the above amounts were shown in the June 2022 CIP Update (used for the Budget) to be expended in FY 2023-24 rather than FY 2022-23. Corrections were subsequently made to the data in Planit. The subject project is underway and construction is expected to be complete in this current fiscal year.

F.7.b
Packet Pg. 172 Attachment: Budget Change Form #011-23 (3109 : Bay Cities partial release) City Council
Staff Report
Agenda Item: H.1
Date: May 9, 2023
Department:

Public Works and
Engineering Services
AGENDA TITLE: Roads and Storm Drain Needs Update
RECOMMENDATION:

Receive PowerPoint presentation from Staff.

BACKGROUND:

The City has invested bond proceeds and supplemental sales tax funding into its roads and storm drains, achieving significant improvements in the PCI (pavement condition index). We are now in a maintenance phase where it is important to carefully program such pavement maintenance work in an effective and efficient manner to optimize limited available funding.

DISCUSSION:

The Metropolitan Transportation Commission, earlier this year, announced Pavement Condition Indexes (PCI) for all cities in the Bay Area which showed that Orinda is tied for second for the best PCI in the Bay Area at 84. This demonstrates the “promises made, promises kept” success of Measure L, the bond issues, and now Measure R which took the City’s PCI from the low 40’s when this effort was first launched.

With the pending completion of the 2022 Paving Project, the City will have addressed all public roads with a few exceptions (all which have an explanation or rationale). So roads in Orinda are now at a stabilized base, where regular and normal maintenance should extend their life for a considerable period.

As such it is now timely to take a look at the cost to maintain the roads, factoring in new mandates like green infrastructure, and the higher costs we are seeing, and compare that to the anticipated revenues which will have each year to invest in streets.

The attached Staff presentation provides information on the following topics:

1. Overview of Pavement Management Program

2. Review of recent biennial PTAP report (pavement management technical assistance program)

3. Review of future funding needs for pavement management

4. Review of Storm Drain Repair Plan
This initial forward look at road maintenance needs and storm drainage will inform the upcoming bi-annual update of the City’s Capital Improvement Program and will also set the stage for longer term planning and evaluation of options.

H.1
Packet Pg. 173
NEXT STEPS:

The SSTOC had received a Road Update at their April meeting. Staff will provide additional information to the SSTOC at their May 10th meeting in a presentation entitled “Overview of Proposed Public Works Road and Drainage Project Funding by Measure R for Annual CIP Update.” At the June 6th City Council meeting, Staff will present the Draft CIP Update for review.

FISCAL IMPACT:

None- this presentation is informational only.

ATTACHMENTS:

A. Roads and Stormdrain Presentation
Respectfully Submitted by:

Scott Christie
Public Works Director
Prepared By: Scott Christie, Public Works Director
Approved by:

H.1
Packet Pg. 174
1 CITY OF ORINDA

ROADS & STORM

DRAIN NEEDS
UPDATE
H.1.a
Packet Pg. 175 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 2 CITY OF ORINDA

PAVEMENT
MANAGEMENT •Public roads are maintained through a Pavement Management Program •Computerized model using StreetSaver program developed by MTC •Used as a baseline for making decisions regarding pavement rehabilitation, preventive maintenance and long-term
planning
H.1.a
Packet Pg. 176 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 3 WHAT IS A PAVEMENT MANAGEMENT PROGRAM?
Pavement Management Program (PMP) is a:
“Computer Assisted Method of Organizing and Analyzing Information about Pavement Conditions”
Organizes, Stores,
and Retrieves
Data
Makes Quick
Analysis and
Calculations
Provides Cost
Effective
Maintenance
Strategies
H.1.a
Packet Pg. 177 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 4 FEATURES OF PMP • Inventory Tool • Condition Assessments • Determination of Needed Work and Funds
• Identify Candidate Projects • Impacts of Funding Alternatives • GIS Maps H.1.a
Packet Pg. 178 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 5 KEY BENEFITS OF PMP
• Justify and secure more funding • Visualize the impact of funding decisions • Efficient use of available resources • Secured database storage and backup H.1.a
Packet Pg. 179 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 6 WHY USE
A PMP?
More Cost-Effective to Treat Before Steep Decline
H.1.a
Packet Pg. 180 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 7 PAVEMENT

TREATMENTS
H.1.a
Packet Pg. 181 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 8 PAVEMENT

TREATMENTS
H.1.a
Packet Pg. 182 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 9 CONDITION ASSESSMENT
• Rating Considerations:
o Distress Type: 8 common to the Bay Area
o Distress Severity: Low/Medium/High
o Distress Quantity: Measurement
• PCI of 100 = Brand New
• PCI of 0 = Completely Failed
• Arterials & Collectors: Every 2 years
• Residentials: Every 4 years
Alligator cracking
Block cracking
Distortions
Longitudinal and transverse cracking
Patching and utility cut patching
Rutting and depressions
Weathering
Raveling
H.1.a
Packet Pg. 183 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 10 ALIGATOR

CRACKING
BLOCK

CRACKING
Low Medium High
Low Medium High
H.1.a
Packet Pg. 184 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 11 DISTORTIONS

LONGITUDINAL
& TRANSVERSE

CRACKING
Low Medium High
Low Medium High
H.1.a
Packet Pg. 185 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 12 PATCHING

RUTTING &

DEPRESSIONS
Low Medium High
Low Medium High
H.1.a
Packet Pg. 186 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 13 RAVELLING

WEATHERING
Medium High
Low Medium High
H.1.a
Packet Pg. 187 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 14 VERY POOR /

FAILED CONDITION
(PCI=0-24)
H.1.a
Packet Pg. 188 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 15 POOR CONDITION
(PCI=25-49)
H.1.a
Packet Pg. 189 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 16 GOOD CONDITION
(PCI=50-65)
PCI=50 PCI=50
H.1.a
Packet Pg. 190 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 17 VERY GOOD

CONDITION
(PCI=70-89) PCI=70
PCI=83
H.1.a
Packet Pg. 191 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 18 EXCELLENT

CONDITION
(PCI=90-100)
H.1.a
Packet Pg. 192 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 19 ORINDA’S NETWORK INFORMATION
Functional
Classification
Centerline
Miles
Lane Miles Pavement
Area (sq ft)
Percent of
System
Average PCI
Arterial 10.99 25.71 2,340,347 18.37% 84
Collector 16.48 32.96 2,227,917 17.49% 80
Residential 63.71 127.50 7,874,103 61.80% 85
Urban Local 2.30 4.59 298,566 2.34% 84
Totals 93.48 190.76 12,740,933 100% 84
H.1.a
Packet Pg. 193 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 20 ORINDA’S NETWORK INFORMATION
Arterial
2,340,347 SF
18%
Collector
2,227,917 SF
18%
Residential
7,874,103 SF
62%
Urban Local
298,566 SF
2%
H.1.a
Packet Pg. 194 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 21 PCI

CATEGORIZED BY CONDITION
The analysis shows that 92.96% of the City's pavement are in Excellent to Good condition.

H.1.a
Packet Pg. 195 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 22 BUDGET NEEDS
CALCULATIONS •Public roads are maintained through a Pavement Management program •Computerized model using StreetSaver program developed by MTC •Used as a baseline for making decisions regarding pavement rehabilitation, preventive maintenance and long-term
planning
H.1.a
Packet Pg. 196 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 23 Scenarios
A summary of each of the scenario projections are as follows:

Scenario 1: System Needs/Unconstrained Budget ($8.3M for Year 1, Ave. $1.9M/Yr. for Years 2-5) Scenario 2: Increase PCI by 5 (Avg. $3.8M/Yr.)
Scenario 3: Maintain current PCI of 84 (Avg. $1.9M/Yr.) Scenario 4: Impact of the current budget ($1.6M/Yr.)
Scenario 5: Represents the impact to the PCI if Zero dollars are spent.

H.1.a
Packet Pg. 197 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 24 BUDGET SCENARIO PROJECTIONS
Note: Budget amounts shown only include design and construction. Construction Engineering, Contingency, Stormwater (C.3) and Storm Drain Improvements are not included. Total project budget for Scenario (S4) is $2.3M/Yr.

H.1.a
Packet Pg. 198 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 25 Scenario 2
H.1.a
Packet Pg. 199 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 26 Scenario 3
H.1.a
Packet Pg. 200 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 27 Scenario 4
H.1.a
Packet Pg. 201 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 28 Network Needs
Next 5 years:
•$3.8 Million annually will increase PCI to 87
-Deferred maintenance decreases by 88% to 0.85 million
•$1.9 Million annually to maintain PCI of 84.
-Deferred maintenance increases by 27% to 10.7 million
•$1.6 Million annually ($2.3 Mil Total) will decrease PCI to 83 -Deferred Maintenance increase by 78.5% to $12.1 million -Approximate breakdown of current funding ($2.3 Mil/Yr) • Gas Tax (Fund #200) – $600,000
• CCTA Return to Source (Fund #330) – $700,000
• Road Maintenance Fee (Fund #335)- $1,000,000
H.1.a
Packet Pg. 202 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 29 Network Needs
Next 15 years:
• $2.4 Million annually to maintain PCI of 84.
-Deferred maintenance increases to 26 million
• $1.6 Million annually will decrease PCI to 74
-Deferred Maintenance increases to $47 million
H.1.a
Packet Pg. 203 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 30 CITY OF ORINDA
ORINDA’S

STORM DRAIN

REPAIR PLAN
H.1.a
Packet Pg. 204 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 31 Background
• Public Storm Drain Repair Plan
• Address critical infrastructure which needs repair,
• Avoid consequence of major storm drain pipe failures, such as the Miner Road Sinkhole (2017)
• 2016 Storm Drain Master Plan by Schaaf and Wheeler (S&W) • Focused on drainage and localized flood risks
• Recommended actions to provide a minimum 10- year storm drain storm capacity. • Inspected pipes (limited to 36 inches dia.) for structural deficiencies.

H.1.a
Packet Pg. 205 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 32 Background
• Geographic Information System (GIS)
• Staff utilized GIS to prepare an electronic inventory of public maintained storm drain pipes • Sorted by pipe size, material and location.
• Citizen Infrastructure Oversight Commission (CIOC)
• In 2019 staff, working with the CIOC, prepared a comprehensive Storm Drain Repair Plan for public maintained pipes.
• Drake Haglan & Associates (DHA) then prepared a prioritization scheme for the Storm Drain Repair Plan.

H.1.a
Packet Pg. 206 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 33 Key factors
• Repair or replace corroded metallic pipes (CMP (corrugated metal pipe) or steel • Only included storm drain pipes within City right-of -way and within accepted easements. • Of the 1,470 public segments, 500 are estimated to need repairs at an estimated cost of $29,700,000.
• DHA prioritization model similar to other infrastructure such as bridges. • Scoring value from 1 to 5 based on size, roadway importance, work type, capacity upsizing.

H.1.a
Packet Pg. 207 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 34 Key factors
• In 2020 CIOC recommended
• Pipes with score 3 and above (Category A) need repair or replacement in the next 3 to 5 years
• Pipes with scores less than 3 (Category B) need repair or replacement in the next 5 to 10 years.

Priority Category A Pipes that will need repair
or replacement in the next
3 to 5 years
$9,600,000
Priority Category B Pipes that will need repair
or replacement in the next
5 to 10 years
$20,100,000
Total $29,700,000
H.1.a
Packet Pg. 208 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 35 Current Projects (Category A)
Group 1 (CIP 4167 & CIP 3100) - Estimated Construction Cost: $600,000 • 190 Moraga Way – 72 LF of 72” X 110” pipe
• 97 Coral Drive – 89 LF of 72” pipe
• 217 Glorietta Blvd. 92 LF of 60’’
Group 2 (CIP 1301 & CIP 1302) - Estimated Construction Cost: $700,000 • 136 Moraga Way – 49 LF of 96” Pipe
• 124 Orchard Road – 75 LF of 60” Pipe
• 232 Ivy Drive- 50 LF – of Double 42” X 72” Pipe
• 41 El Camino Moraga – 94 LF of 96” Pipe
H.1.a
Packet Pg. 209 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) 36 Thank You
H.1.a
Packet Pg. 210 Attachment: Roads and Stormdrain Presentation (3112 : Pavement management) City Council
Staff Report
Agenda Item: H.2
Date: May 9, 2023
Department: Administration
AGENDA TITLE: Inclusionary Housing Ordinance - Continued From May 2, 2023 RECOMMENDATION:

Receive Report regarding Inclusionary Housing Ordinances, Discuss Key Parameters, and Direct Staff to Prepare an Ordinance for Review and Consideration.

BACKGROUND: On January 31, 2023, the City Council approved an updated Housing Element for the City’s General Plan. Since that time, the State Department of Housing and Community Development has deemed the City’s Housing Element to be in substantial compliance with State law and our attention has turned to implementation activities. As discussed during the consideration of the Housing Element, one of the first action items which the City Manager and staff committed to bring back for consideration is a possible inclusionary housing ordinance. This report is the first step in that process.

An Action Item on page 222 of the adopted Housing Element regarding an inclusionary ordinance provides:
“Action 3.G: Inclusionary Housing Ordinance. The City will research an inclusionary housing ordinance. This ordinance will identify acceptable methods to provide affordable housing such as: a) construction of housing on- site, b) construction of housing off-site, c) dedication of land for housing, and d) payment of an in-lieu fee. Development of this ordinance requires an analysis of the following variables:
● Limiting the application of the ordinance to developments exceeding a certain size.
● Percentage of housing units required to be set aside as affordable. ● Design and building requirements.
● Timing of affordable unit construction.
● Determination of a fee in lieu of developing affordable units. ● Developer incentives, such as fee deferrals and waivers. ● Administration of affordability control.

Responsible Agency: Planning Department
Timeframe: Determine the appropriateness of an inclusionary ordinance within two years after adoption of the Housing Element. If determined appropriate, adopt an inclusionary ordinance within one year of making the determination.

Funding Source: General Fund
Quantified Objective: 145 lower income units in high opportunity areas to promote access to resources and mobility for target households.” H.2
Packet Pg. 211
DISCUSSION: Any consideration of an inclusionary ordinance in Orinda should reflect the goals in the recently approved Housing Element and diverse range of tools and programs to be put in place to encourage the development of housing, especially affordable housing including the higher densities to be implemented in parts of the community. It is anticipated that many market-rate developments will take advantage of the bonus density laws which provide for additional density and waivers/concessions in exchange for including affordable housing in new development. As such, the staff has approached the development of an inclusionary ordinance as mainly being the tool to ensure what would otherwise be 100% market projects also do their fair share and contribute towards the provision of affordable units.

Inclusionary housing ordinances have been utilized in many communities across the State for many years. They became more important after the elimination of Redevelopment Agencies in 2011-12 as redevelopment project areas had a mandate that 15% of all housing be affordable, plus 20% of any property tax increment received by a Redevelopment Agency was set aside for affordable housing. It should be noted that Orinda did not have a Redevelopment Agency.

Attached is publication of the Local Government Commission and others from 2018 entitled: Meeting California’s Housing Needs: Best Practices for Inclusionary Housing (Attachment A). While this is slightly dated, it does provide a good overview on inclusionary housing and the main approaches and considerations.

Another resource is the California Coalition for Rural Housing website on which inclusionary housing programs from many jurisdictions across the State are catalogued.

The link below provides access to that website as an additional resource:
https://experience.arcgis.com/experience/ccee391adbe9461cbe32c6b3423939be?org= ucdavis
Welcome to the California Inclusionary Housing Programs Searchable Database, created by the California Coalition for Rural Housing in June 2021. This database includes all of California’s Inclusionary Housing programs and allows stakeholders to filter programs by various characteristics, see where the programs are located within California, and discover and download more detailed information.

Click on the information icon on the Filter Inclusionary Housing label for brief instructions on how to use the database, and see the Inclusionary Housing User Manual for more detailed information.

An additional resource is a publication on from the Western Center on Law and Poverty which is attached: Inclusionary Housing in California – The Legal Landscape (Attachment B). This publication explains some of the legal constraints regarding inclusionary housing and its evolution due to legislation and case law. As discussed in this publication, a few years after we have an inclusionary ordinance in place, the State Department of Housing and Community Development (HCD) will require an economic H.2
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study demonstrating that the ordinance is not an impediment to new housing construction. In addition, we should be mindful that the legal landscape can change, and a current example is a bill which has been introduced in the State Legislature this year. SB 423 would make, if passed, inclusionary ordinances unenforceable if their income limits don’t match those in SB 35, an existing piece of housing legislation.

Finally, two neighboring communities have local inclusionary ordinance. the Town of Moraga considered and adopted an inclusionary housing ordinance in December of 2022, a very recent local example. The staff report and final adopted ordinance is provided as an additional touchstone (Attachment C). Plus, in conjunction with their new inclusionary housing ordinance, the Town of Moraga has embarked on the establishment of an in-lieu fee for inclusionary units, or fractional units. That staff report and study may also be of interest (Attachment D). The Council may also consider the City of Lafayette’s inclusionary Ordinance which was originally adopted in 2016 and which has been amended since. A summary of the Lafayette Ordinance is excerpted from their Housing Element is provided as Attachment D and the text of the Ordinance is provided as Attachment E. These communities’ inclusionary ordinances can inform the Orinda City Council discussion of options.

Parameters for Consideration
As staff begins work on a draft inclusionary housing ordinance, it would be helpful to get some initial feedback from the City Council on a number of parameters.

1. Size of development to which the inclusionary housing ordinance would apply.

A high-level review of inclusionary ordinances indicates that 10 units or more is a often used threshold. The Moraga ordinance exempts projects of 5 units or less from the on-site requirement, though a fractional in-lieu fee is established. Given the densities contemplated on the opportunity sites in the Downtown and other areas, the 10-unit threshold is what staff would be proposing.

2. Percentage of units required to be set aside as affordable and at what target levels of affordability.

A 10% to 15% level of inclusionary seems to be most common. As an initial target, City staff suggest that 10% would be the desirable target level given we have numerous housing opportunity sites which are slated for affordable housing development. The City is looking to facilitate or encourage the development of housing affordable in three categories – Very Low, Low, and Moderate income.

Having projects producing inclusionary units at a mix of 50% Very Low/Low and 50% Moderate would be recommended. It is anticipated that some sites developed in conjunction with an affordable housing developer would be 100% affordable to the Very Low/Low categories.

3. Should the mix of on-site affordable units be proportionate to the unit mix for the market rate components?
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While staff anticipates that the affordable units can vary in size and amenity levels from the market rate units, any on-site units should be proportionate to the overall mix of the market rate units. For example, if there are 80 market rates units in a mix of 10 studio, 20 one-bedroom and 10 two-bedroom, the affordable units should match that mix with 2 studios, 4 one-bedroom, and 2 two-bedroom units for a total of 8 units at a 10% requirement. Some flexibility may be desirable, so a factor like a 10% variation could be allowed or some other goal established or required.

4. Should an in-lieu fee be considered for projects below the on-site requirement minimum?
An in-lieu fee should be established to ensure all development is contributing to the production of affordable units. There are some broader policy questions such as should the in-lieu fee apply to projects under threshold requiring on-site production of housing like in Moraga where a fractional fee is levied or are their situations where a developer could “buy” their way out of on-site production by perhaps paying the in-lieu at a higher level, say 150% of the standard in-lieu fee.

This may on occasion also be desirable if the City is working to facilitate housing at the lower income levels with the fees collected being able to help assist in that effort.

5. What, if any, development incentives should be considered? As noted, while many developments are anticipated to utilize the State’s density bonus law for additional density in exchange for providing a level of affordability, they are also entitled under State law to additional concessions and waivers.

While we don’t expect that the City’s inclusionary housing ordinance would be applicable to the projects already taking advantage of the State’s density bonus law, should market rate projects subject to the inclusionary housing ordinance also be afforded some incentives to off-set the cost for providing the affordable units?
NEXT STEPS: Staff will utilize the initial feedback received as part of this agenda item to develop a draft inclusionary ordinance to present to the Planning Commission as the next step in the consideration process. If additional feedback is desirable prior to that step, staff could work with the City Council’s Downtown Planning & Housing Element Subcommittee to refine the proposed components.

FISCAL IMPACT: None because of this item. There will be costs both direct and staff time to develop an inclusionary housing ordinance, and after adoption to further implement and administer the program on an on-going basis.

ATTACHMENTS:

A. Attachment A - Inclusionary Factsheet
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B. Attachment B - Inclusionary Housing in California - The Legal Landscape C. Attachment C - Moraga Affordable Housing Ord
D. Attachment D - Moraga Inclusionary Zoning In-Lieu Fee E. Attachment E -Lafayette Inclusionary Program Summary - Excerpt from Housing Element Contraints Analysis
F. Attachment f - Lafayette Inclusionary Ordinance
G. Link to Communications from Public from May 2, 2023 City Council Meeting Respectfully Submitted by:

David Biggs
City Manager
Prepared By: Sheri Smith, City Clerk
Approved by:

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I
nclusionary housing is used in hundreds of communities across the country tocreate units that are affordable to lower-income households in new market-rate residential developments. More than 170 cities and counties in California have used inclusionary-housing policies to help address affordable-housing needs while advancing equitable-development goals.

Inclusionary policies capture some of the value of rising real-estate prices to provide community benefits byusing local land-use controls to ensure that muchneeded affordable-housing units are produced along with market-rate units and that the limited supply of developable land is put to work in a way that serves households atall income levels.

Inclusionary housing – also referred to as “inclusionary zoning”– is a flexible tool that can be tailored to local circumstances. There is no one “model” inclusionary-housing policy, but rather a number of best practices to consider when adopting or amending an ordinance.

This factsheet explores the range of policy options to consider when designing a local inclusionary ordinance and highlights best practices that maximize community benefits and fulfill policy goals.

An inclusionary-housing ordinance is one part of an equitable-development strategy, and should not be viewed as the sole way to address affordable-housing needs. In most communities, building the needed amount of housing for lower-income families will still require public subsidies and must be integrated with other strategies.

Following a period of legal
uncertainty around inclusionary
ordinances, a 2015 Supreme
Court decision affirmed city
and county authority to impose
inclusionary requirements
based on local government’s
broad police powers.

And passage of Assembly Bill
1505 in 2017 reinstated the
authority to apply inclusionary
policies for rental housing.

Meeting California’s Housing Needs:

Best Practices for Inclusionary Housing
■ November 2018
Produced by Local Government Commission,
Western Center on Law and Poverty and
California Rural Legal Assistance Foundation,
with funding from the Climate, Land Use,
and Transportation program of
the Resources Legacy Fund.

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Packet Pg. 216 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options) 2 MEETING CALIFORNIA’S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING Awell-designed ordinance can generate numerous benefits for communities seeking to increase housing affordability and develop diverse, inclusive neighborhoods. These include:
✦ More choices for lower-income households about where to live. ✦ Reduced opposition to affordable housing by producing affordable units within communities as they develop, not after.
✦ Support for compact infill development, reduced sprawl and achievement of local Regional Housing Needs Assessment
(RHNA) targets for all income levels.
✦ Reduced vehicle miles traveled (VMT) and greenhouse gas emissions byproviding people at all income levels more opportunities to live closer to work and in transit-rich areas.
✦ Ensuring that the entire community benefits from a growing economy.

Public and private investments help create economic growth that raises property values. Inclusionary housing helps capture some of the value created by these investments to ensure that the benefits do not accrue solely to property owners and helps buffer against displacement pressures byensuring that lower-income residents can remain in the community. ✦ Reduced segregation and concentration of poverty.

Benefits of an Inclusionary Housing Ordinance
Keys to a Successful Ordinance
Adopting a detailed inclusionary ordinance with input from a wide range of community stakeholders is the best method for implementing effective and legally defensible inclusionary requirements.

The ordinance’s language should provide clarity and certainty for the development community, and be structured to realistically achieve its goals. It should be backed by data and research that establishes both the need for the policy and the feasibility of the requirement.

The key elements of a well-crafted inclusionary ordinance include:

1. State the need.

Local governments have broad discretion under the police powergranted by the state constitution to regulate the use of land within their borders, so long as the regulation is reasonably related to advancing the general welfare.

A local inclusionary ordinance, then, should start with a statement of findings related to the need for the policy to improve the community’s well-being.

Most California jurisdictions have a severe shortage of housing units affordable to low- and very low-income households.The need to address that shortage provides a strong basis for inclusionary zoning, as does the need to meet the jurisdiction’s share of the region’s ongoing housing need at the lower-income levels (which is nearly impossible to do with subsidy alone).

Jurisdictions also frequently point to the need to address past patterns of racial and economic segregation in their community,ensure the preservation and development of diverse neighborhoods, meet fair-housing mandates, and make the best use of a limited supply of developable land.

The ordinance should be directly tied to the findings establishing the need for the policy. For example, if the findings cite the shortage of low- and very low-income housing units in the community, then one of the policy’s goals should be to ensure that those units get produced. A well-crafted ordinance will start with findings that support the policy choices reflected in the design of the ordinance.
“Lower-income” households refers to those making 80% or less of area median income (AMI). The term encompasses households that are “low-income” (those making 50-80% of AMI) and “very low-income” (those making less than 50% of AMI).

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Packet Pg. 217 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options)

2. Get the numbers right: how many, where,
when and for how long?
How many affordable units should be required
and to whom should they be affordable?
An inclusionary ordinance should clearly define how many affordable units must be included in a project and at which income levels. The vast majority of ordinances set the requirement as a percentage of the total number of units in the project, while a few communities use a square-footage metric.

LOW AND VERY-LOW: The requirement will typically be split between lowand very low-income households (for example, 15% of the total are affordable units, with 10% low and 5% very low). Some laws also include a target for extremely low-income households.

MODERATE: Some communities also require moderate-income units, but this should be based on a careful analysis of the market and its ability to serve moderate-income households. If the market is producing moderate-income units on its own, there would be no rationale for having a inclusionary requirement for moderate-income units.

Whatpercentage a community establishes will be dependent on its affordable housing needs, local market conditions, the financial incentives available to developers, and the mix of affordability levels required.

FIXED: Some communities require fixed percentages at each designated income level, whereas others may provide some flexibility (for example, allowing for a lower percentage of inclusionary units overall when the units are provided at a deeper affordability level).

FLEXIBLE: Some jurisdictions structure their inclusionary policies to involve a sliding scale, so that projects that include higher percentages of affordable units also qualify for more incentives, such as greater density increases.

While there may be reasons to build flexibility for the required number of affordable units into an ordinance,too much flexibility can undermine the creation of new housing at the income levels needed most and cannot be produced by the market alone.

Which projects should have to comply with
the inclusionary requirement?
While it may be tempting to carve out various exceptions to an inclusionary requirement, the best practice is to apply the requirement to all housingdevelopment projects throughout a community or the geographic area covered by the policy. This is the best way to ensure that the policy is In California, the requirements in most inclusionary policies adopted so far have fallen within the 10-20% range –
15% being the most common.

MEETING CALIFORNIA’S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING 3 implemented equitably and serves the overall goal of ensuring that all neighborhoods – single-family and multi-family, lower-density and higherdensity – incorporate housing options at a range of income levels.

SMALL PROJECTS: Many jurisdictions choose to exempt small projects from complying with an inclusionary requirement. The rationale is often to ensure that smaller development projects are financially feasible. While a smallproject exemption may be well-intended, it can be difficult to reconcile an exemption with the ordinance’s overall goals and create potential legal issues.

It can also be a challenge to settle on a definition of “small”that doesn’t simply encourage projects that come in just under the threshold, thus frustrating the goal of ensuring that all new housing development contributes to meeting the community’s affordable-housing needs.

Rather exempting these projects altogether,a better practice is to provide small projects with the option to pay an in-lieu fee as an alternative tocompliance with on-site production requirements. This is particularly true in areas where a high proportion of development activity occurs on smaller projects.

Should inclusionary requirements be different for
for-sale projects and rental projects?
In most jurisdictions, the most defensible ordinance will be one that imposes an inclusionary requirement equally on rental and for-sale housing. Requirements that treat the two differently may have fairhousing implications and, much like exemptions for small projects, can be challenging to reconcile with the ordinance’s goals.

For example, an ordinance that requires the inclusion of low- and very lowincome units in rental developments, but only moderate-income units in for-sale developments, could run counter to the goal of ensuring that all neighborhoods have a mix of housing at all income levels in cities where rental and for-sale development generally happen in different neighborhoods.

Furthermore,depending on local demographics, such policies may lead to disparate impacts on certain protected classes,potentially violating legal requirements. In weighing whether to impose the same or different requirements on rental and for-sale housing, it’s crucial to consult with an attorney with expertise in fair-housing laws.

RENTAL/FOR-SALE MIX: One way to maximize the production of affordable units and increase flexibility is to allow developers of single-family projects the option of meeting the inclusionary requirement by including affordable multi-family rental units within the development rather than affordable for-sale, single-family homes.

However, this option should be crafted carefully to ensure consistency with the ordinance’s overall goals and fair-housing obligations. Rental units can generally be produced more cost-effectively than for-sale units, so this option should reflect that by requiring that a higher percentage of rental units be produced.

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Packet Pg. 218 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options) 4 MEETING CALIFORNIA’S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING Under California law, if the inclusionary requirement is adopted through a program in the jurisdiction’s housing element, the program must provide developers with this option. However, nothing requires a jurisdiction to adopt an inclusionary requirement through its housing element, and this approach is not ideal.

Should inclusionary requirements be structured
differently in different neighborhoods?
Inclusionary requirements most typically apply jurisdiction-wide. While different neighborhoods within a city may have differing development markets, a well-designed policy already adjusts for those differences.

For example, in a neighborhood where the development market is especially hot and land costs are high, the value of an increase in allowable density is also much higher, making a higher inclusionary requirement feasible.

SPECIFIC PLANS: However, in large cities, it may make sense to consider areaspecific increases in an inclusionary requirement because some parts of town may be much hotter development markets than others. An effective way to accomplish this is through the adoption of a specific plan that lays out the land-use controls that apply within a designated geographic area.

TRANSIT AREAS: Some jurisdictions have also crafted specific inclusionary policies that apply to areas adjacent to transit stations, recognizing the wide body of research demonstrating how crucial it is to build affordability into transit-oriented development and the resulting benefits that increase transit ridership, reduce greenhouse gas emissions, and strengthen community stability.

How long should inclusionary units remain
affordable?
Given the time and resources that go into developing housing, an inclusionary ordinance should aim to set the affordability term – how many years a unit must remain “affordable”– for the longest period of time that is feasible.

One important thing to consider in determining the affordability term is the cost of maintaining a unit’s affordability over time compared to the cost of having to provide a new affordable unit to replace it when the deed-restriction period ends. In most cases, the former will be far more cost-effective than the latter.

BUILDING WEALTH: One advantage of homeownership is the ability to build wealth through the ownership of an appreciable asset. Strict resale controls that require the home to be resold at an affordable price to another lowincome homeowner significantly restrict the wealth-building advantages of homeownership.On the other hand, the program should protect against the owner of a for-sale inclusionary home quickly reselling the home at a significant profit.

SHARING EQUITY: The most common way of balancing these interests is an equity-sharing policy in which any appreciation is split between the selling homeowner and the jurisdiction. The jurisdiction then uses its share to assist in future homeownership opportunities for low-income buyers.

Some policies have initial limits on resale (such as 10 years) that require the home to be resold only to a low-income buyer at an affordable price during that period.

Other ordinances have a sliding-scale, equity-sharing provision that states that no proceeds to a homeowner who sells during the initial years, but provides a greater share of the proceeds to the homeowner closer toward the end of the 45-year term.

Should the inclusionary requirement change
over time?
Housing markets are constantly changing, and it would be a challenge to amend an inclusionary requirement in response to every rise and dip in local conditions. However, building in a set review period can be useful for a number of reasons. Periodic review can help determine whether the percentage of units required remains appropriate for local conditions so that the community is not losing out on affordable units that could feasibly be achieved with a higher inclusionary requirement.

It can also help in assessing whether changes to income targeting are necessary. For example, if a community has steadily produced low-income units but not very low-income units, it may be necessary to increase the percentage of very low-income units required by the ordinance and adjust available incentives accordingly to account for the higher cost of providing these units. Every five years is a reasonable review period.

SYNC WITH HOUSING ELEMENT: Another option is to review the ordinance concurrent with the housing-element adoption process every eight years. (While most local jurisdictions in California must update their housing element every eight years, some rural jurisdictions remain on a five-year cycle.) For rental units, 55 years is a common affordability term required by many affordable-housing funding programs in California. An inclusionary ordinance should require at least as long a period, although it’s not uncommon for jurisdictions to require longer periods – or even to mandate that inclusionary rental units be deed restricted in perpetuity, as West Hollywood does.

The typical term with for-sale units is 45 years. Affordability restrictions for these units present some additional policy considerations about the sale of the home during the affordability term.

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Packet Pg. 219 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options) MEETING CALIFORNIA’S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING 5

3. Couple with incentives and concessions.

From both a legal and a practical standpoint, an inclusionary-housing policy should include incentives and concessions for developers to help offset the cost of providing the affordable units. Common concessions and incentives include:
✦ Density increases, including the option of greater density increases in exchange for higher percentages of affordable units. ✦ Waivers of development standards, such as height and setback requirements.
✦ Reduction in or a waiver of minimum parking requirements, especially for projects located in transit areas.
✦ Expedited permit processing or ministerial approval.
✦ Waiver, reduction or deferral of development fees, either on the inclusionary units or the entire project.
✦ Direct financial subsidies.

California law requires that developers who comply with an on-site inclusionary requirement that meets the affordable-housing requirements of the state Density Bonus Law must receive all of the benefits to which they are entitled under that law. These benefits include a density increase, concessions and incentives, waivers of development standards and reduced parking requirements. For example, a project that includes 20% of units affordable to low-income households is entitled to a 35% density bonus, two concessions or incentives and various other benefits provided under the state law.

4. Establish clear development standards.

In addition to specifying the percentage of affordable units and at which income levels, an ordinance should establish clear standards for the inclusionary units. Among such best practices:
✦ The affordable units must be indistinguishable from the market-rate units in the development, at least outwardly.
✦ The project includes a similar mix of unit types. For example, if a multifamily rental development will have an equal number of 1-, 2- and 3-bedroom units, the affordable units should also incorporate an equal mix of 1-, 2- and 3-bedroom units. Many ordinances also require that inclusionary units be the same square footage as the market-rate units, although in some cases jurisdictions have built in flexibility to reduce square footage while including the same number of bedrooms to reduce project costs.
✦ Inclusionary units must be located throughout the development rather than clustered in one area.
✦ Residents of the affordable units must have access to all amenities – such as a pool, a fitness center and parking – that market-rate residents have.
✦ The affordable units must be completed either prior to or concurrent with the market-rate units, and prior to issuance of a certificate of occupancy.

ACCESSORY DWELLING UNITS: For single-family for-sale developments, some jurisdictions have allowed accessory dwelling units (ADUs) as a way tofulfill an inclusionary requirement. This is not considered a best practice and should be avoided. While cities and counties should encourage the construction of ADUs, which can be a land- and cost-efficient way of expanding a community’s housing supply, they are problematic from an inclusionary standpoint.

ADUs are readily distinguishable from the other units in a for-sale development, and may raise equity and fair-housing concerns if used as the means for achieving compliance with an inclusionary policy.

ADUs are also typically studios or 1-bedrooms rather than a match of the bedroom mix of the primary development, and are often designed as “micro” or “efficiency” units without similar amenities as the primary development.

They are challenging to deed-restrict and monitor, and are unlikely to provide the long-term affordability that an inclusionary ordinance should require.

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Packet Pg. 220 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options) 6 MEETING CALIFORNIA’S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING If properly designed, an in-lieu fee option can have advantages in certain jurisdictions. In-lieu fees can enable a jurisdiction to leverage state and federal funds that may not have otherwise been available, allowing for more affordable units to be built than would have been created on-site.

IN-LIEU ADVANTAGES: It can also provide flexibility to produce needed units that the inclusionary requirement is not producing, such as extremely lowincome units; use funds to preserve existing affordable housing with expiring deed restrictions; produce rental units in places where the inclusionary requirement is primarily creating for-sale units (or vice versa); or develop affordable units in parts of the city where development isn’t happening and thus the inclusionary requirement is having no impact.

If allowed, the fee amount should be set at a level comparable to the cost of producing a similar unit to the one that otherwise would have been provided on-site. One of the most common methods for determining the fee amount is to base it on the gap between the affordable-housing and market-rate costs. For example, if it costs $300,000 to produce a low-income unit but the rent only covers the financing on $230,000, then the in-lieu fee would be set at $70,000 to cover the difference.

The amount of an in-lieu fee will need to change over time to reflect changes in construction costs, inflation and other market factors. Therefore, it is better to put the formula for determining the fee amount into an ordinance rather than state the amount itself,since amending an ordinance on a regular basis can be time-consuming, costly and potentially controversial.

ADJUSTING THE FEE: The ordinance should specify the mechanism for adjusting the fee over time, such as tying it to increases in the local Construction Cost Index, as San Francisco does. If an ordinance distinguishes between rental and for-sale units in its inclusionary requirements, in-lieu fees should also be distinguished in the same manner to ensure they are an adequate substitute for the provision of on-site units.

Off-site construction
Allowing construction of inclusionary units off-site can have advantages.

For example, a developer may be able to build affordable units more costeffectively off-site, thus enabling more units to be produced. However, there are also pitfalls that jurisdictions should work to avoid.

5. Provide alternative methods of compliance.

Because one of the primary goals of an inclusionary requirement is to make affordable units available in all housing developments, ordinances should require on-site construction of the inclusionary units to the maximum extent possible. However, most jurisdictions have chosen to allow alternatives to on-site production of inclusionary units under certain circumstances.

In California,state law requires that alternative methods of compliance be provided to developers of inclusionary rental housing,although what those alternatives are, and when each alternative is available, is left up to individual jurisdictions. The law doesn’t require alternatives for developers of forsale housing. Common alternatives include in-lieu fees, off-site construction, land donation, and the acquisition and rehabilitation of existing units.

When weighing how to offer to provide some flexibility, alternatives should be appropriately limited to maximize on-site construction. Alternatives should be available where on-site production of units is less feasible, rather than as a default option for all developments. Common mistakes that can lead to inadequate production of actual housing units include setting in-lieu fees too low and failing to establish adequate standards for land donation.

Timing is also a crucial factor in the structure of alternatives. For example, some jurisdictions have required that off-site inclusionary units be completed concurrent with or prior to the development that triggered the inclusionary requirement, or before a certificate of occupancy for that development is issued. Ideally, alternatives should be used only when they will lead to the production of more affordable units than would otherwise be provided on-site, while still being consistent with the ordinance’s other goals.

In-lieu fees
One common alternative is in-lieu fees, which are paid instead of constructing the required affordable units. In-lieu fees are generally paid into a local affordable-housing trust fund that finances the construction of affordable housing at other locations within the community. Of all the alternatives, in-lieu fees provide the greatest challenge to achieving inclusionary goals and therefore should be considered carefully and sparingly.

Unlike off-site construction and land-dedication alternatives, in-lieu fees don’t guarantee a site for the construction of the affordable units. If the amount of the fee is not sufficiently high, the payment may also not produce enough revenue to help produce new affordable units. Without adequate funding and identified locations for their use, the fee revenue could sit unused.

TRUE COST: Furthermore, if in-lieu fees don’t reflect the true cost of producing on-site units, this may drive most developers to opt for paying the fee rather than producing an affordable unit on-site. Over time, this can frustrate the policy and lead to an insufficient proportion of affordable units being developed.

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Packet Pg. 221 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options) MEETING CALIFORNIA’S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING 7 One important consideration with off-site construction is the allowable geography – how far from the development site. Given that the inclusionary requirement seeks to foster mixed-income neighborhoods and reduce segregation, even if inclusionary units can’t be produced on-site in a new development, they should be produced nearby. In cases where that isn’t possible, the jurisdiction should ensure that they are dispersed equitably throughout the community and not clustered in lower-income neighborhoods.

Jurisdictions also typically require more units to be built off-site than would be required on-site. This means the value of the cost savings over on-site construction is captured and translated into a community benefit, and that the policy properly expresses an appropriate preference for on-site units.

Ensuring on-site and off-site construction have similar costs incentivizes on-site construction (which should be the norm), while still providing a meaningful alternative for those projects that can’t feasibly accommodate on-site affordable units.

Another best practice is to require that the off-site units be constructed before or concurrent with the market-rate units,which can be achieved byhaving the off-site units finished before building permits are issued for the market-rate development site. That way an off-site alternative doesn’t simply become an escape hatch to avoid complying with the site’s inclusionary requirement.

Land donation
Land donation can be a useful option where affordable-housing developers have difficulty finding building sites. Paired with in-lieu fees or other sources of affordable-housing funding,dedicated land can be used to produce needed types of housing that might not otherwise get built,such as homes for people with special needs or permanent supportive housing.

However, jurisdictions must establish clear parameters for exercising this alternative. Donated land should be equivalent or greater in value to the affordable units that otherwise would have been produced on-site, and should be ready for development at the time it is donated. It is also important here to consider the allowable geography to make sure that the required affordable units are not concentrated in certain neighborhoods.

6. Include procedure for requesting waivers
or reductions.

An inclusionary requirement may not withstand legal scrutiny if it doesn’t include a process by which a developer can request a waiver or reduction of the requirement. Much like the inclusionary requirement itself,the waiver process should be as clear and specific as possible,detailing both the procedures for requesting the waiver – process, timeline, appeal procedure – and the standards by which the request will be evaluated.

The waiver or reduction process should be carefully structured so that it functions as the exception and not the rule, and is only used in rare cases.

The City of Napa’s inclusionary requirement withstood a constitutional challenge in part because it included a waiver-request provision. The City used a constitutional test todetermine whether a waiver would be approved, under which the developer had to show that the requirement as applied would be unconstitutional.

Other jurisdictions apply a hardship standard,allowing for a waiver or reduction if the developer can show that the requirement would deprive them of all economically viable use of the land. An economic-hardship standard should not be about the level of profit, but about whether any profit can be made.

Feasibility Studies
While not required by state law in California, preparing a feasibility study in support of an inclusionary requirement helps ensure that the requirement is right-sized for local conditions. It’s important not to set an inclusionary requirement so high that it stops development, and equally crucial not to set it too low and miss out on affordable units.

A feasibility study is an opportunity to analyze local market conditions and the economics and tradeoffs of various policy options – affordability percentages and levels, incentives – to make sure the ordinance delivers the number and type of affordable units that a community needs.

It also provides a data-driven foundation for the requirement, which can help overcome opposition by showing that it can be implemented without impeding the developers’ability to earn a profit.

The California Department of Housing and Community Development generally requires local jurisdictions to analyze inclusionary requirements as a potential constraint on development in their housing elements. A feasibility study can help demonstrate that the requirement isn’t a barrier.

NEXUS STUDIES: Feasibility studies should not be confused with nexus studies. A jurisdiction must prepare a nexus study to impose an exaction.

A nexus study would be required if a jurisdiction wanted to adopt a commercial linkage fee, for example, where it must show that the amount of the fee is roughly proportional to the need for affordable housing generated by new commercial development.

An inclusionary requirement is not an exaction but rather a land-use regulation, much like a density requirement or a height restriction, and need only be related to advancing a legitimate purpose. A nexus study is not required when adopting a traditional inclusionary ordinance.

For more information about the preparation of feasibility studies for inclusionary studies: inclusionaryhousing.org/resources/#feasibility H.2.a
Packet Pg. 222 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options) 8 MEETING CALIFORNIA’S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING Some jurisdictions require that tenants move at the end of the lease term as soon as their household income exceeds the income limit for the unit. Others allow a tenant to remain until their household income exceeds the income limit by a set amount or percentage.

The policy should be tied to the cost of market-rate housing in the community and ensure that tenants are aware of requirements and receive adequate notice when they exceed income limits and must vacate the unit. To avoid displacement, consider allowing tenants to stay in a unit after their income exceeds allowable limits but convert that unit rent to market rate. The next comparable unit in the development that becomes vacant would then be offered as affordable to replace that “lost”unit. ✦ State how sales of for-sale units will be handled, including the referral of potential buyers and how funds derived from equity-sharing agreements will be used. Also, if the jurisdiction has an option to purchase a unit upon resale or at the end of the regulatory period, it should have a mechanism in place for handling those options.

A strong monitoring program can have the added benefit of providing clear data about the success of the ordinance. This information can then be used to establish that the inclusionary requirement is not a constraint on development for purposes of the housing-element review process,and for potential future discussions about amendments to the inclusionary requirement.

MORE RESOURCES
✦ inclusionaryhousing.org
✦ lgc.org/advancing-inclusionary-housing-policy
While “inclusionary housing”usually refers to mandatory land-use policies designed to construct affordable housing within market-rate developments, other tools can also capture land value to produce needed affordable units.

Voluntary inclusionary requirements
California has a statewide, voluntary inclusionary method in the form of Density Bonus Law, with which all cities and counties must comply.

Under this law, developers who include affordable units in their projects are entitled to a density increase and other incentives.

Local governments can offer density increases above those specified in the state law in exchange for higher levels of affordability (units for households at the lower AMI levels).

Linkage fees
A linkage fee can be imposed on commercial and residential development togenerate funds for affordable housing. The amount of this fee is set based on the community’s need for affordable housing generated by new development. A growing number of California cities have adopted commercial linkage fees, including Los Angeles, Oakland, Sacramento and San Diego.

While linkage fees can be a crucial revenue source, a linkage fee for affordable housing doesn’t produce the other community-wide benefits of a traditional inclusionary requirement, such as economically integrated neighborhoods, and may also not be as economically valuable. Pairing a commercial linkage fee with a traditional inclusionary requirement is one way for a community to maximize the production of affordable housing while also advancing other important policy goals.

Ad hoc inclusionary requirements
Some jurisdictions have tried to negotiate inclusionary requirements on a project-by-project basis, often on larger projects. These ad hoc requirements are problematic from a legal standpoint and don’t ensure that all new residential development includes housing affordable at a range of income levels.

Other Value-Capture Tools to Produce Affordable Housing in Development

7. Monitor implementation and compliance.

A jurisdiction that chooses to adopt an inclusionary ordinance should be prepared to devote staff time and resources to ongoing monitoring and other administrative tasks needed to implement the ordinance effectively.

In addition to ensuring that deed restrictions and covenants are recorded in time and that affordability is maintained for the required time period, it is important to ensure that units are occupied by households at the appropriate income levels over time and that resale provisions are enforced.

To maximize the program’s effectiveness, a jurisdiction should adopt procedures that:
✦ Establish whether the jurisdiction, property managers or a designated third party will be responsible for verifying tenant or homebuyer eligibility, income recertification and other occupancy factors.

The best practice is to have the jurisdiction perform these tasks, although smaller jurisdictions may find it more cost-effective to pool resources with other neighboring jurisdictions and contract with a third party. Having property managers perform these tasks can prove overly burdensome due to the training required. ✦ Ensure that a list of available units is up-to-date and readily accessible to households in the targeted income categories, and that the list is maintained in a way that ensures compliance with fair-housing obligations. ✦ Determine which qualified applicants (those meeting household-income restrictions) are chosen to rent or buy inclusionary units. ✦ Recertify tenant income annually and determine when a tenant household no longer qualifies for residency in the inclusionary unit.

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Packet Pg. 223 Attachment: Attachment A - Inclusionary Factsheet (3114 : Inclusionary Housing Ordinance Options) 1 Inclusionary Housing in California: The Legal Landscape With the signing of 2017’s landmark housing package, California restored local governments’ ability to apply locally adopted inclusionary housing requirements—which generally mandate that private housing developers include affordable units in their projects—to rental housing.
1 The legislation, combined with recent court decisions upholding the validity of local inclusionary requirements, creates a powerful tool for local governments to wield when crafting policies to promote development that benefits all segments of their community.

A Brief History of Inclusionary Housing
Inclusionary housing ordinances in California “were instituted as a response to . . . exclusionary zoning[], to severe shortages of affordable housing combined with a reduction of federal housing subsidies, and to legal pressures in California and New Jersey.”2 Those legal pressures included the seminal lawsuit filed in New Jersey when a group of low-income African-American and Puerto Rican residents sought to build affordable housing in the Township of Mount Laurel, which maintained exclusionary single-family zoning practices. After that group mounted a legal challenge to the township’s exclusionary practices, the Supreme Court of New Jersey declared that municipalities had an “affirmative obligation” to meet their “fair share” of the regional need for low- and moderate-income housing.3 Later, in enforcing its prior decision, the court found that an affirmative obligation to provide housing opportunities for families of all social strata can sometimes only be satisfied though the use of inclusionary policies.
4 These principles became a blueprint for numerous municipalities across the country, including in California, to promote economic and racial integration within their jurisdictions.

California declared an affirmative legal obligation to meet fair share housing requirements in the state Housing Element Law, enacted in 1969.5 Under the law, “[l]ocal and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision 1 AB 1505 (Bloom), Chapter 376, Statutes of 2017. 2 Barbara Erlich Kautz, In Defense of Inclusionary Zoning: Successfully Creating Affordable Housing, 36 U.S.F. L. REV. 971, 972 (2002). 3 S. Burlington County N.A.A.C.P. et al. v. Township of Mount Laurel, 336 A.2d 713, 727-8. (N.J. 1975) (Mt.

Laurel I). 4 S. Burlington Cnty. N.A.A.C.P. v. Mount Laurel Twp., 456 A.2d 390, 449 (N.J. 1983) (Mt. Laurel II). 5 Cal. Gov't Code §§ 65580 et seq.

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Packet Pg. 224 Attachment: Attachment B - Inclusionary Housing in California - The Legal Landscape (3114 : Inclusionary Housing Ordinance Options) 2 for the housing needs of all economic segments of the community.”6 Local jurisdictions that receive federal funding similarly have a duty to reverse the harmful effects of exclusionary zoning under the federal duty to affirmatively further fair housing.7 In addition, California law now requires cities and counties to affirmatively further fair housing in the administration of their housing and community development activities.8 These issues continue to be pressing to this day, and as the New Jersey Supreme Court noted, inclusionary housing policies remain one of the only ways for cities and counties to address them.

The Problem with 2009: Palmer and Patterson
By 2007, over 170 California jurisdictions had adopted inclusionary housing policies, encompassing mandates for rental, for-sale, or a combination of rental and for-sale units.9 Then, in 2009, two Court of Appeal decisions created uncertainty around inclusionary ordinances: Palmer/Sixth St. Properties, L.P. v. City of Los Angeles, 175 Cal.

App. 4th 1396 (2009) and Building Industry Assn. of Central California v. City of Patterson, 171 Cal.App.4th 886 (2009).

The Palmer Decision
In Palmer/Sixth St. Properties, L.P. v. City of Los Angeles, a developer challenged a mandatory rental inclusionary requirement included in a specific plan governing development in a portion of Los Angeles. He argued that the Costa-Hawkins Rental Housing Act, a law that limits rent control in residential tenancies, prohibited the imposition of mandatory inclusionary policies in rental housing. Costa-Hawkins, in relevant part, states “’[n]otwithstanding any other provision of law,’ all residential landlords may, except in specified situations, ‘establish the initial rental rate for a dwelling or unit.’”10 Though the Legislature never considered or addressed inclusionary ordinances when passing Costa-Hawkins, the Court of Appeal agreed with the developer.11 The court’s decision effectively made invalid local inclusionary requirements imposed on rental housing and any in lieu fees associated with them.

Importantly, local for-sale inclusionary requirements remained valid. 6 Cal. Gov't Code § 65580(d). 7 42 U.S.C. §3608.
8 AB 686 (Santiago), Chapter 958, Statutes of 2018
9 Non-Profit Housing Association of Northern California, Affordable by Choice: Trends in California Inclusionary Housing Programs (2007). 10 Palmer/Sixth St. Properties, L.P. v. City of Los Angeles, 175 Cal. App. 4th 1396, 1410–11, 96 Cal. Rptr. 3d 875, 886 (2009). 11 Id. at 886-87.

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Packet Pg. 225 Attachment: Attachment B - Inclusionary Housing in California - The Legal Landscape (3114 : Inclusionary Housing Ordinance Options) 3 The Patterson Decision
In a much narrower holding, another Court of Appeal determined that an in lieu fee associated with the City of Patterson’s inclusionary ordinance was not “‘reasonably justified’ as required by the development agreement for the project at issue unless there [was] a reasonable relationship between the amount of the fee, as increased, and ‘the deleterious public impact of the development.’”12 The court’s decision was based on the language of the development agreement, the unusual formula the city used to determine the in lieu fee, and the failure of the City of Patterson to articulate an alternative formula. The decision created some uncertainty, temporarily, as to what standard of review courts would use when assessing the validity of an inclusionary ordinance, whether applicable to for sale or rental units.

The combination of the Palmer and Patterson decisions created some uncertainty in the landscape of the law applicable to inclusionary housing ordinances for several years.

Fortunately, recent legislation and court decisions have clarified the law and affirmed the continuing validity and importance of such local measures.

Present Opportunities
Two critical changes in the law related to inclusionary housing have occurred in the last several years. First, the California Supreme Court has clarified that the validity of inclusionary housing ordinances should be judged by the traditional standard applicable to a locality’s exercise of its police powers: whether they are “reasonably related to the broad general welfare purposes for which the ordinance was enacted.”13 Second, the Governor signed AB 1505, which reinstated a municipality’s right to apply inclusionary requirements to rental housing.

The CBIA Decision
Two main issues in CBIA v. City of San Jose were: 1) whether San Jose’s local inclusionary ordinance was an unconstitutional exaction as outlined in the United States Supreme Court’s Nollan/Dolan line of cases; and 2) whether the City’s inclusionary ordinance was subject to the San Remo standard that the ordinance be “reasonably related to the impact of a particular development to which the ordinance applies.”14 12 Bldg. Indus. Assn. of Cent. California v. City of Patterson, 171 Cal. App. 4th 886, 898 (2009) (disapproved of by California Bldg. Indus. Assn. v. City of San Jose, 61 Cal. 4th 435 (2015)). 13 California Bldg. Indus. Assn. v. City of San Jose, 61 Cal. 4th 435, 474 (2015). 14 San Remo Hotel v. City and County of San Francisco, 27 Cal.4th 643, 663–664 (2002), relating to the Mitigation Fee Act.

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Packet Pg. 226 Attachment: Attachment B - Inclusionary Housing in California - The Legal Landscape (3114 : Inclusionary Housing Ordinance Options) 4 First, the court held that the ordinance was not an exaction. To constitute an exaction, the ordinance would have had to “require a developer to give up a property interest for which the government would have been required to pay just compensation under the takings clause outside of the permit process.” 15 The court reasoned that the law was akin to land use regulations that restrict usage of the property (i.e., setbacks, density requirements, etc.) and price controls (i.e., rent stabilization), which have been held to be constitutional and do not require just compensation. 16 Accordingly, restricting the
amount for which a developer can sell or rent a unit is subject only to the same review as any other land use regulation.

Second, the court held that the city need only show that the ordinance is reasonably related to the broad general welfare purposes for which it was enacted, meaning the San Remo standard did not apply. This decision expressly overturned Patterson “to the extent it indicates that the conditions imposed by an inclusionary housing ordinance are valid only if they are reasonably related to the need for affordable housing attributable to the projects to which the ordinance applies.”17 The court found that the higher standard found in San Remo is intended to apply “to permit conditions that require the payment of monetary fees,” not land use regulations.18 Even more narrowly, the court found that the San Remo standard only applies to development mitigation fees.19 In distinguishing San Remo and overturning Patterson, the court noted that San Jose’s law was passed in order to allow the city to meet its affordable housing goals and to ensure that new economically diverse affordable housing was spread throughout the city. In short, pursuant to CBIA, cities and counties are free to impose inclusionary requirements based on their broad police powers.

The Palmer Fix: AB1505
In 2017, Governor Brown signed the long-awaited Palmer fix, once again allowing municipalities to apply inclusionary requirements to rental housing. However, the fix imposes some new standards for the imposition of those restrictions.

Government Code §65850(g) states that cities may:
“Require, as a condition of the development of residential rental units, that the development include a certain percentage of residential rental units affordable to, and 15 California Bldg. Indus. Assn. v. City of San Jose, 61 Cal. 4th 435, 461 (2015). 16 Id. at 461-464. 17 Id. at 479
18 Id. at 472
19 Id. at 473
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Packet Pg. 227 Attachment: Attachment B - Inclusionary Housing in California - The Legal Landscape (3114 : Inclusionary Housing Ordinance Options) 5 occupied by, households with incomes that do not exceed the limits for moderateincome, lower income, very low income, or extremely low income households. . .” This first section reinstates the law as it was prior to Palmer. However, it continues:
“The ordinance shall provide alternative means of compliance that may include, but are not limited to, in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units.”
By that language, the fix creates a new requirement that a municipality’s local inclusionary ordinance, as applied to rental housing, must include alternative means of compliance other than the construction of affordable rental units on site in a housing development. While the statute provides examples of alternatives, it does not provide an exhaustive list of what those alternatives could be or when they must be granted, leaving it up to cities and counties to decide. As a practical matter, nearly all inclusionary ordinances adopted in California prior to the passage of AB 1505 had already included alternative means of compliance under certain circumstances.

The second portion of AB 1505 allows the Department of Housing and Community Development (HCD) to review local inclusionary ordinances in specific, limited circumstances. Specifically, Government Code §65850.01 authorizes HCD to review a local inclusionary ordinance if all of the following apply:

1. The ordinance was adopted or amended after September 15, 2017, and no more than 10 years have passed since the adoption or most recent amendment of the ordinance.

2. The ordinance requires that more than 15% of the total units in a residential rental development be affordable to occupants at or below 80% of area median income (i.e, lower-income households).

3. The jurisdiction, according to its annual housing element report, has not met at least 75% of its above-moderate share of the regional housing need over at least a five-year period (prorated based on the length of time within the planning period pursuant to Gov’t Code 65588(f)(1)), or the jurisdiction has not submitted the annual housing element report for at least two consecutive years.

If all of these conditions apply, then HCD may request, and the local jurisdiction must provide within 180 days, an economic feasibility study demonstrating that “the ordinance does not unduly constrain the production of housing.”20 Leaving aside best 20 Gov’t Code §65850.01(b).

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Packet Pg. 228 Attachment: Attachment B - Inclusionary Housing in California - The Legal Landscape (3114 : Inclusionary Housing Ordinance Options) 6 practices, the feasibility study is only required if HCD has requested it pursuant to its aforementioned authority; it is not required in order to pass a valid ordinance.

Once a jurisdiction submits a requested economic feasibility analysis, HCD can only review it to determine the following:

1. The preparer of the study is a qualified entity with demonstrated expertise in the area.

2. The study was available on the jurisdiction’s website for at least 30 days and then considered at a regularly scheduled legislative meeting prior to approval.

3. The study was sufficiently rigorous and followed best professional practices.

Importantly, HCD’s authority does not extend to imposing its own analysis of economic feasibility. Once a jurisdiction has submitted the study, HCD has 90 days to determine whether the study meets the requirements described above. If HCD finds that it does not and the jurisdiction disagrees with HCD’s negative determination, it may appeal to the Director of HCD or his or her designee. The Director or designee must then make a decision within 90 days of receipt of the appeal.

If a jurisdiction fails to submit the required feasibility study within 180 days or HCD makes a final determination that the study does not meet the prescribed requirements, the ordinance is still valid. However, until the jurisdiction submits a feasibility study that HCD determines meets the prescribed requirements, it may not impose a requirement to include units affordable to households at 80% of area median income in excess of 15%.

With the resolution of several outstanding legal issues that have clouded the policy choices on inclusionary housing in recent years, local governments once again have clear authority to enact these policies for both rental and for-sale housing. Inclusionary housing policies remain an important local tool for increasing the supply of affordable housing and building equitable, inclusive communities.

For questions, contact:

Brian Augusta, California Rural Legal Assistance Foundation, [email protected]
Navneet Grewal, Western Center on Law and Poverty, [email protected] Anya Lawler, Western Center on Law and Poverty, [email protected] H.2.b
Packet Pg. 229 Attachment: Attachment B - Inclusionary Housing in California - The Legal Landscape (3114 : Inclusionary Housing Ordinance Options) 1 1 2 Meeting Date: December 7, 2022
3 4
5 TOWN OF MORAGA STAFF REPORT
6 7 To: Honorable Mayor and Councilmembers
8 9 From: Afshan Hamid, AICP, Planning Director
10 Barry Miller, FAICP, Planning Consultant
11 12 Subject: Conduct a Public Hearing and Consider Waiving the First Reading and 13 Introducing by Title Only an Ordinance Adding Chapter 8.180 to the 14 Moraga Municipal Code Creating an Affordable Housing Requirement 15 for New Residential Development; and Provide Direction to Staff on 16 the Proposed Development Incentives Policy for Projects Meeting the 17 Town’s Affordable Housing Requirements On-site (California 18 Environmental Quality Act (CEQA) - Exempt Pursuant to CEQA 19 Guidelines Section 15061(b)(3)
20 21 Request
22 23 The Town Council is being asked to consider waiving the first reading and introducing by 24 title only an Ordinance adding Chapter 8.180 to the Moraga Municipal Code creating 25 requirements for affordable housing in new residential development of six units or more. 26 The Planning Commission held a study session on November 7 and conducted a public 27 hearing on November 14, to consider the proposed Chapter 8.180. On November 14, the 28 Commission voted 6-1 in support of a Resolution recommending Council adoption. 29 30 The Council is also being asked to provide direction on the proposed Development 31 Incentives Policy for Projects Meeting the Town’s Affordable Housing Requirements On32 site which is tentatively scheduled for adoption on December 14, 2022. 33 34 Background
35 36 The Town is in the process of undertaking a Comprehensive Advanced Planning Initiative, 37 including a State-mandated update of the Moraga Housing Element, and related General 38 Plan and zoning amendments. As part of the Housing Element, the Town is required to 39 demonstrate to the State Department of Housing and Community Development (HCD) 40 that it has the capacity to add at least 1,118 new housing units by 2031, including 673 41 units that are potentially affordable to lower- and moderate-income households. The 42 1,118-unit assignment is commonly referred to as the Town’s “RHNA”—or Regional 43 Housing Needs Allocation.

Town of Moraga Agenda Item
Public Hearing 8. A.

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Packet Pg. 230 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 2 1
2 While the Town is proactively rezoning property to accommodate its RHNA, additional 3 measures are needed to ensure that a substantial share of the housing built is actually 4 affordable to lower- and moderate-income households. Without Town intervention, 5 housing developers would likely produce only market rate units on designated housing 6 opportunity sites. Some of these units might meet affordability guidelines for moderate7 income households but few, if any, would be considered affordable to lower-income households.1 8 In the last two Housing Element cycles, the Town did not produce any of 9 the RHNA-required low- or very low-income housing units. HCD has classified Moraga 10 as a “High Resource Area” and is requiring such areas to meet a larger share of the 11 region’s affordable housing needs than they have in the past. 12 13 On November 10, 2022, the Town received the 90-day letter on the Working Draft 14 Housing Element. A common thread throughout the letter is that the Element must 15 demonstrate that the sites identified to meet the Regional Housing Needs Allocation 16 (RHNA) are distributed throughout the community in a manner that Affirmatively Furthers 17 Fair Housing (AFFH). HCD has provided Affirmatively Furthering Fair Housing (AFFH) 18 Guidance for All Public Entities and for Housing Elements, see AFFH link. As of January 19 1, 2019, AB 686 creates a state mandate requiring public agencies and jurisdictions to 20 “take meaningful actions that overcome patterns of segregation and foster inclusive 21 communities free from barriers that restrict access to opportunity based on protected 22 characteristics.” The AFFH Guidance covers a wide range of locally-based solutions for 23 jurisdictions State wide, and also provides Examples of Affirmatively Furthering Fair 24 Housing Actions (page 72). The actions include Housing Mobility Strategies, New 25 Housing Choices and Affordability in Areas of Opportunity, Place-based Strategies to 26 Encourage Community Conservation and Revitalization, Protecting Existing Residents 27 from Displacement.
28 29 One of the tools commonly used and recommended by HCD to ensure that at least some 30 of the units in new developments are “affordable” is inclusionary housing (also called 31 inclusionary zoning). Inclusionary housing ordinances require developers to provide a 32 percentage of new residential units at a price that is considered affordable to very low-, 33 low-, or moderate-income households. The “Inclusionary” units have deed restrictions 34 that limit the rent (or sales price) that may be charged, as well as the annual income of 35 the tenant (or purchaser). Inclusionary Housing is an Affordable Housing tool to help the 36 Town meet its RHNA goal. Over 60 percent of the Town’s RHNA goal is comprised of 37 housing units that are affordable to lower- and moderate-income households. State 38 Density Bonus Law provides an additional tool to meet these targets; however, it is 39 voluntary while the proposed Inclusionary Zoning Ordinance would be mandatory. 40 41 Staff provided an overview on housing implementation tools, including inclusionary 42 housing, at a Joint Planning Commission and Town Council meeting on May 4, 2022. 43 After receiving the report, Council provided direction to staff for a more detailed 1 In 2022, the upper income limit for a “lower income” household was $76,750 for a one-person household, $87,700 for a two-person household, $98,650 for a three-person household, and $109,600 for a four-person household. The equivalent “affordable” monthly housing costs were $1,919 (1 pp), $2,193 (2 pp), $2,466 (3 pp), and $2,740 (4 pp).

For “moderate-income” households, affordable monthly housing costs were $2,999 (1 pp), $3,428 (2 pp), $3,855 (3 pp), and $4,283 (4 pp).

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Packet Pg. 231 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 3 1 presentation at a future Town Council meeting. On August 24, 2022, staff provided a 2 focused discussion on Inclusionary Housing requesting feedback on policy prior to 3 developing an ordinance. The staff reports for these study sessions provide more context 4 and may be consulted for additional detail. Hyperlinks are provided below:
5 6 • The May 4, 2022 staff report may be accessed here. (see pages 13-18) 7 • The August 24, 2022 staff report may be accessed here. 8 9 The policy areas discussed at the August 24th meeting and the direction provided by 10 Council were as follows:
11 12 • The percentage of units that must be affordable. Council direction was to include 13 a 10% affordability requirement.
14 • The depth of affordability required (i.e., of the BMR units, what percentage need 15 to be very low, low, and moderate?) Council direction was 10% low-income 16 affordability for rental units and 10% moderate affordability for for-sale units. 17 • Exemptions (small projects may be exempt from the ordinance). Council direction 18 was to provide an exemption for projects with five or fewer units. 19 • Treatment of “fractional” units (when the total number of units is multiplied by the 20 percentage requirement, the product is usually not a round number). Council 21 direction was to collect an in-lieu fee for fractional units. 22 • Applicability to rental vs ownership units (most ordinances apply to both). Council 23 direction was to apply the affordable requirement to both rental and ownership 24 units.
25 • Alternatives for developers who wish to meet the requirement without providing the 26 unit(s) on-site (this allowance is required by State law). Council provided direction 27 that the off-site affordable unit requirement should be 50 percent higher than the 28 percent required for on-site construction. Council also provided direction that if the 29 affordable requirement was met through acquisition and rehabilitation of existing 30 multi-family housing, at least two units shall be rehabilitated for each affordable 31 unit required.
32 • Design of inclusionary units (do they need to look the same as the market rate 33 units?) Council provided direction on the following:
34 o The units should be dispersed through the project
35 o The units should be comparable in terms of bedroom count, however, the 36 units may be smaller
37 o The exterior design and character should be consistent with the market rate 38 units
39 o The interior finishes may be different but they must be good quality 40 o The affordable units must have access to all amenities. 41 • Calculation of in-lieu fees. Council directed staff to provide additional information 42 on a recommended methodology.
43 • Length of affordability. Council direction was that for-sale units should be 44 affordable for 45 years, while rental units should be affordable for 55 years.

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Packet Pg. 232 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 4 1 • Jurisdiction-wide vs applicability in specific areas only. Council direction was that 2 the ordinance should apply townwide.
3 • Incentives that offset the economic impact of the inclusionary units. Council 4 direction was to take into consideration the concerns of developers. 5 6 The Town Council also requested that staff solicit feedback from developers prior to 7 developing an Inclusionary Housing Ordinance. Staff convened a “Developer 8 Roundtable” on October 20 to receive input on potential Inclusionary Housing 9 requirements. A link to the video of the Developer Roundtable can be found here. 10 11 Staff has developed a Draft Affordable Housing Ordinance based on the input and 12 feedback received from Town Council, at the Developer Roundtable, and from 13 stakeholders. The Planning Commission received a presentation on the proposed 14 Affordable Housing Ordinance on November 7. The Planning Commission held a public 15 hearing to consider the proposed Ordinance on November 14, 2022. 16 17 The Commission approved a resolution recommending adoption of the Ordinance by a 18 6:1 vote at its November 14 meeting. Of the six Commissioners voting in favor, three 19 supported the proposed Ordinance “as is” and three supported a modification to avoid 20 encouraging additional housing units in wildland-urban interface areas. The 21 Commission’s specific concern was that the proposal to allow developers in lower-density 22 zones to meet affordable housing requirements through Accessory Dwelling Units (ADUs) 23 would potentially increase the number of households in high fire hazard areas. The 24 Commissioner casting the “no” vote on the Ordinance indicated his support for the 25 concept of inclusionary zoning but expressed that it should apply only in the Town’s two 26 commercial centers.
27 28 On November 16, the Town Council received a briefing on the proposed Ordinance. The 29 following points were raised:
30 31 • The Town Council was generally supportive of Planning Commission direction to avoid 32 creating incentives for additional housing units in wildland-urban interface areas. A 33 distinction was made between the Town’s ADU regulations, which are guided by State 34 law, and the proposed affordable housing provisions, which are set by the Town. 35 • The Council reiterated the desire to ensure the Ordinance is flexible and responsive 36 to the real estate market.
37 • The issue of expanding public awareness of the proposed ordinance and soliciting 38 community input to the extent possible was raised. Staff explained that public input 39 had been solicited at meetings throughout 2022.
40 • The alternative of using market-rate ADUs rather than deed-restricted units (either for41 sale or for-rent) was generally supported. Councilmembers expressed differing views 42 on the proposed alternative, and discussion occurred regarding the 500 square foot 43 minimum, the 25 percent threshold, and the potential applicability of the ADU 44 alternative to higher density districts.
45 46 Local developer and property-owner David Bruzzone spoke at the November 16 meeting 47 and provided correspondence on the Draft Ordinance. Mr. Bruzzone expressed his view 48 that the Affordable Housing requirement should be voluntary rather than mandatory, that H.2.c
Packet Pg. 233 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 5 1 there should be no size limit on ADUs for developers using the ADU option, that the ADU 2 option be available in all residential zoning districts, and that the Town allow “banking” or 3 “transfer” of affordable housing credits for developers building market rate housing in one 4 location while providing ADUs in another. Mr. Bruzzone further expressed that fees for 5 fractional units should be required at the time of occupancy rather than Final Map 6 approval or building permit issuance, that the “25 percent ADU option” be reduced to 10 7 percent, and that “off-site alternatives” require the same number of affordable units as the 8 “on-site” requirements. As directed by Council, Staff met with Mr. Bruzzone on November 9 22 to further discuss his concerns about the Ordinance. 10 11 The next section of this report provides an overview of the Draft Ordinance (Attachment 12 “A”). The Ordinance refers to a Policy Resolution (Attachment “B”) which will be adopted 13 by the Town Council separately, rather than as part of the Municipal Code Amendment. 14 The Policy Resolution includes development incentives. Because the incentives require 15 a greater degree of flexibility and potentially amendments in the future, they are not 16 included as part of the proposed Ordinance.
17 18 Discussion
19 20 The proposed Chapter 8.180 (Affordable Housing) is included as Attachment “A” to this 21 Report and is summarized as follows:
22 23 Sections 8.180.010 and .020 indicate the title and purpose of the Ordinance, respectively. 24 The purpose statement explains the importance of the Ordinance to meeting the Town’s 25 RHNA and providing a tool for affirmatively furthering fair housing and creating housing 26 for the Moraga workforce, seniors, students, and other special needs groups in the 27 community.
28 29 Section 8.180.030 provides definitions of key terms used in the Ordinance. All of the 30 terms referenced in the definition appear in later sections of the Ordinance. 31 32 Section 8.180.040 identifies the General Requirements for the program, including the 33 types of projects that are covered (and exemptions), and the percentage of affordable 34 units that are required. Recognizing economic considerations, the Ordinance has 35 different requirements for for-rent and for-sale housing and allows flexibility in the 36 percentages of affordable units to be provided based on the depth of affordability. This 37 section also addresses “fractional” units.
38 39 Section 8.180.050 addresses Administration of the program, including requirements for 40 inclusionary housing plans and agreements. The agreements establish resale restrictions 41 for inclusionary for-sale units, and rental restrictions for rental units, as well as provisions 42 to monitor compliance once units are created. This section also gives the Council the 43 authority to adopt in-lieu fees for fractional units, Very High Fire Hazard Severity Zones 44 and for developers who cannot feasibly provide the inclusionary housing units on-site. 45 The basis for the fee is the gap between the value of a market-rate unit and an affordable 46 unit, which will be established through a future fee resolution. 47 H.2.c
Packet Pg. 234 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 6 1 Section 8.180.060 identifies alternative means of compliance. In each case, the Town 2 Council must find that on-site provision of affordable units is infeasible or that greater 3 public benefit will result from the units being off-site. The alternative options include 4 building the units off-site, partnering with a non-profit for off-site construction, acquiring 5 and rehabilitating existing multi-family housing in Moraga and making it affordable, or 6 paying an in-lieu fee. The Ordinance also allows applicants to propose other creative 7 concepts for meeting the requirements of the chapter. 8 9 Section 8.180.070 indicates the standards for inclusionary units. This includes the 10 required length of affordability (45 years if for-sale, 55 years if for-rent), requirements for 11 the design of affordable units, and requirements for timing (i.e., when the inclusionary 12 units become available relative to the market rate units). 13 14 Section 8.180.080 identifies incentives to offset the profit loss associated with limiting 15 rents and sales prices for the inclusionary units. These incentives include fee deferral (at 16 the discretion of the Town Council), density bonuses, and modified development 17 standards that support the development of additional units. The incentives are designed 18 to work in tandem with the State density bonus program. The bonuses and incentives 19 themselves are not quantified in the Municipal Code, but a separate document (to be 20 adopted by Resolution) would establish a schedule for use in future applications. 21 22 Section 8.180.090 provides further detail for applicants who choose to comply with the 23 Inclusionary Ordinance by providing accessory dwelling units (ADUs) rather than deed 24 restricted affordable units. This option is only available to for-sale development in lower25 density zoning districts. Projects choosing this option are not eligible for density bonuses 26 but also are not subject to limitations on occupancy, income, or rent of the ADUs. 27 28 Section 8.180.100 includes provisions for applicants requesting waivers or adjustments 29 to the requirements. These are only available in limited circumstances and are subject 30 to approval by the Town Council. Section 8.180.110 addresses enforcement and includes 31 provisions for appeal.
32 33 The sections below highlight how specific issues are addressed by the proposed 34 Ordinance.
35 36 Exemptions/ Applicability
37 38 The Ordinance would apply to all residential projects with six or more units. Projects with 39 five or fewer units would be exempt. The Ordinance would apply Town-wide, but projects 40 in lower density zones would have the option of meeting the inclusionary requirement 41 through ADUs, as described below.
42 43 Percentage of Units Required and Depth of Affordability 44 45 In rental projects, applicants would meet the requirement by dedicating 10 percent of the 46 units for low-income households. Consistent with the RHNA, low income is defined as 47 80% of areawide median income (AMI) and very low income is defined as 50% of AMI.

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Packet Pg. 235 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 7 1 “Affordable” rents may represent no more than 30 percent of monthly income for 2 households in these units.
3 4 In for-sale projects, applicants are required to dedicate 10 percent of the units for 5 purchase by moderate income households. However, in zones with densities of R-6 or 6 lower (e.g., R-6, 3 DUA, 2 DUA, 1 DUA, and Rural Residential), developers may meet the 7 requirement by including ADUs in 25 percent of all new housing units. No deed 8 restrictions or occupancy limitations would apply to the ADUs. 9 10 The Ordinance is written in a flexible manner so that developers may propose alternative 11 percentages upon demonstration that they are of equivalent value to the Town. For 12 instance, a developer may propose a smaller inclusionary percentage in a rental project 13 if the inclusionary units serve very low-income households rather than low-income 14 households.
15 16 Fractional Units and In-lieu Fees
17 18 The Ordinance gives the Town Council the authority to adopt an in-lieu fee. The primary 19 purpose of the fee would be to calculate the amount due for fractional units. In other 20 words, if an applicant proposed a 24-unit rental project, they would be required to include 21 2.4 lower income units in their project (or a smaller number of very low-income units 22 equivalent in value). Since dwelling units are counted in whole numbers, the “fractional” 23 remainder would be converted to a fee. The amount of the fee has not been established 24 and would be determined by the Town Council. The basis for the fee is included in the 25 Ordinance. It represents the gap between the market-rate price (sales or rent) and the 26 affordable price (sales or rent) of the inclusionary unit. 27 28 Alternate Means of Compliance
29 30 AB 1505 requires that at least one alternate means of compliance is provided in 31 inclusionary housing ordinances. Some developers may find it infeasible to include 32 affordable units in their projects, and request relief through such alternate means. As 33 noted above, the alternatives are off-site construction, acquisition/rehabilitation of existing 34 units, and partnership with a non-profit developer. In the latter case, the partnership could 35 include land donation and financial assistance to facilitate off-site construction of 36 affordable units. The off-site alternatives require higher ratios of affordable units to 37 market rate units. The goal is to assist the Town in meeting AFFH requirements and 38 prioritize units built on site.
39 40 For off-site construction (or assistance to a non-profit), a ratio of 1.5:1 is applied so that 41 the applicant must build 50% more units than would otherwise be required. For 42 developers choosing acquisition/rehab in lieu of building the units off-site (or assistance 43 to a non-profit for this purpose), the applicant must rehabilitate twice the number of units 44 that would otherwise be required. The higher ratios are intended to disincentivize the 45 alternatives and encourage applicants to build the units on-site. 46 H.2.c
Packet Pg. 236 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 8 1 As noted earlier, another alternate means of compliance is provided for lower-density 2 residential projects (R-6 or lower). This refers to the provision to include ADUs in 25 3 percent of the units rather than dedicating deed-restricted affordable units. 4 5 Based on Planning Commission and Town Council input, staff has added a new 6 alternative that provides developers in Very High Fire Hazard Severity Zones with the 7 option to pay an in-lieu fee rather than developing the 10% affordable units. 8 9 The Ordinance also allows developers to propose other “creative concepts” for meeting 10 the intent of the requirement, subject to Town Council approval. 11 12 Length of Affordability
13 14 The Ordinance proposes that for-sale units are deed restricted for 45 years, and for-rent 15 units are deed restricted for 55 years. These affordability terms are consistent with State 16 Density Bonus Law.
17 18 Timing of Construction
19 20 The Ordinance requires inclusionary units to be constructed prior to or concurrently with 21 construction of the market rate units. In general, construction of affordable units may not 22 be deferred to a future date after the market rate units are completed. However, the 23 Ordinance does establish limited opportunities for a deferral of up to three years where 24 an Agreement has been signed between the market-rate developer and an affordable 25 housing developer. This is in response to comments by developers at the roundtable 26 meeting.
27 28 Design
29 30 The Ordinance requires that the inclusionary units be reasonably dispersed around the 31 project, comparable in bedroom count, compatible in exterior design and character, and 32 have access to all amenities in the project. However, inclusionary rental units may be 33 20% smaller than market-rate units, and inclusionary for-sale units may be 30% smaller 34 than market-rate units. The inclusionary units may have different interior finishes than 35 the market rate units, provided they are durable and of high quality. 36 37 Policy Resolution: Development Incentives for Projects Meeting the Town’s Affordable 38 Housing Requirements On-Site
39 40 Attachment “B” to this Staff Report is a Policy Resolution with specific bonuses and 41 incentives available to developers providing inclusionary units on-site. Developers are 42 entitled to the bonuses provided by the State of California under State Density Bonus Law 43 (SDBL), and an additional local bonus that allows construction of 30 to 36 units per acre. 44 Developers are further entitled to incentives comparable to those offered through the 45 SDBL.
46 47 The Policy Resolution is proposed for adoption at the December 14 Council meeting, 48 following the Second Reading of the Ordinance. The incentives can be adopted by H.2.c
Packet Pg. 237 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 9 1 resolution rather than by ordinance so that they can be more easily amended in the future. 2 The incentives respond to feedback from the developer roundtable that multi-family 3 projects may not be economically viable at the proposed General Plan and zoning density 4 of 24 units per acre. Additional incentives have been proposed on top of those already 5 allowed by the State, enabling densities of up to 30 units per acre for projects complying 6 with the Ordinance, and up to 36 units per acre for projects providing student or senior 7 housing.
8 9 The incentives would allow some of the provisions of SDBL for lower-income households 10 to apply to projects with affordable housing units serving households earning up to 80 11 percent of AMI. Current SDBL defines low-income households as earning up to 60 12 percent of AMI, so the broader definition (which is consistent with the RHNA definition) 13 would provide an expansion of potential incentives. More specifically, projects meeting 14 the inclusionary requirements on-site would be eligible for the SDBL parking standards, 15 which are lower than the Town’s standards, plus one development incentive, such as 16 reduced setbacks, additional height, or increased lot coverage. 17 18 Next Steps
19 20 The December 7 meeting is the first reading of the Ordinance. A second reading is 21 scheduled for December 14. The Council is scheduled to adopt the Policy Resolution 22 concurrently with the second reading on December 14. The Ordinance will become 23 effective on January 13, 2023, 30 days after the second reading. Once adopted, the 24 effectiveness of the Ordinance and policy resolution will be periodically evaluated, with 25 modifications made as needed based on results.
26 27 The Town Council has retained Keyser Marston, an economics consulting firm, to develop 28 the in-lieu fee/ fractional fee required to implement the Affordable Housing Ordinance. 29 The Council is scheduled to consider a resolution at the January 11, 2023 meeting to 30 adopt the fee.
31 32 CEQA
33 34 The proposed Municipal Code Amendments are exempt from the provisions of the 35 California Environmental Quality Act (CEQA) (Public Resources Code Section 2100, et 36 seq.) pursuant to CEQA Guidelines Section 15061(b)(3). Adoption and implementation 37 of the proposed Ordinance does not constitute a “project” as defined by CEQA because 38 the Ordinance by itself would not result in a direct physical change to the environment or 39 a reasonably foreseeable indirect change.
40 41 The Code Amendments are occurring within the context of a broader planning initiative 42 that is subject to CEQA. A Draft EIR has been prepared for the Comprehensive Advanced 43 Planning Initiative and was published on October 27. The comment period for the 44 Planning Initiative EIR ends on December 12, 2022 at 5:00 p.m. 45 46
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Packet Pg. 238 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 10 1 Fiscal Impact
2 3 Adoption of affordable housing requirements will require the collection of fees for 4 fractional units. A dedicated Affordable Housing Fund would be created by the Town as 5 a repository for these fees. As they accrue, the fees would be used to support Housing 6 Element programs and potentially provide a supplemental funding source for non-profit 7 affordable housing developers. There would be additional costs associated with 8 administering affordable housing requirements, reviewing affordable housing plans and 9 Agreements, and monitoring compliance with the program. Some of these functions 10 could be carried out by third parties, as the Town has limited staff capacity. 11 12 Recommendations
13 14 1. Find the proposed Municipal Code Amendments to be exempt from CEQA pursuant 15 to CEQA Guidelines Section 15061(b)(3) and Adopt Ordinance ___ Amending the 16 Moraga Municipal Code to create Chapter 8.180 – Affordable Housing (first reading). 17 2. Provide feedback to staff on the proposed Development Incentives Policy for Projects 18 Meeting the Town’s Affordable Housing Requirements On-site. 19 20 Report reviewed by: Cynthia Battenberg, Town Manager 21 Karen Murphy, Assistant Town Attorney
22 23 Attachments:
24 25 A. Draft Ordinance Amending the Moraga Municipal Code to Add Chapter 8.180:
26 Affordable Housing
27 B. Draft Development Incentives Policy for Projects Meeting the Town’s Affordable 28 Housing Requirements On-Site
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Packet Pg. 239 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options)

ATTACHMENT A
Draft Ordinance Amending the Moraga Municipal Code to
Add Chapter 8.180: Affordable Housing
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Packet Pg. 240 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) Ordinance No. XX-2022 A-1 December 7, 2022

BEFORE THE TOWN COUNCIL OF THE TOWN OF MORAGA
In the Matter of:

An Ordinance Adding )
Chapter 8.180 to the Moraga )
Municipal Code to Create an )
Affordable Housing Requirement for )
New Residential Development )
Ordinance No. -2022
Affordable Housing
WHEREAS, the State of California has found that local governments have a responsibility to facilitate the development of housing for all economic segments of the community (Government Code Section 65580(d)); and
WHEREAS, the Regional Housing Needs Allocation (RHNA) assigned to the Town of Moraga by the Association of Bay Area Governments requires that the Town plan for 1,118 units of new housing between 2023 and 2031, including 673 units affordable to very low-, low-, and moderate-income households; and
WHEREAS, the Town of Moraga has not produced a sufficient number of affordable units to meet its RHNA in prior Housing Element cycles; and WHEREAS, the State of California has provided limited funding for affordable housing construction, thereby requiring the private sector to participate in meeting the Town’s RHNA; WHEREAS, the Town currently does not have mechanisms in place to compel developers to include housing affordable to very low-, low-, and moderate-income households in future projects; and
WHEREAS the median sales price of a home in Moraga exceeded $1.5 million in 2022, and the median rent for a two-bedroom apartment was $2,900, prices that are not affordable to lower-income households; and
WHEREAS, the shortage of affordable housing in Moraga has resulted in many households overpaying for their housing, including 23 percent of the town’s renters paying more than 50 percent of their incomes on housing and over 60 percent of the town’s very low-income households paying more than 50 percent of their incomes on housing; and Attachment A: Draft Ordinance.

NOTE: Changes from the version provided on November 16 are identified in redlined text.

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WHEREAS, the shortage of affordable housing in the town has also led to insufficient supply of housing for the local workforce and student population, leading to overcrowding in some units, and long commutes as workers seek affordable housing in other communities; and WHEREAS, a stated Goal of the Moraga Housing Element is to achieve a balanced supply of housing for all income groups; and
WHEREAS, legislation adopted in 2017 (AB 1505; Government Code Sections 65850(g) and 65850.01) authorizes cities to adopt inclusionary requirements for rental residential developments, provided that such ordinances provides alternative means of compliance, and the proposed Ordinance provides such alternative means of compliance; and WHEREAS, additional legislation adopted in 2017 (SB 686) requires that every jurisdiction in California affirmatively further fair housing by distributing opportunities for very low-, low-, and moderate-income housing in multiple locations rather than concentrating it in a single location, an outcome that is supported by this Ordinance; and WHEREAS, the Town has drafted a 2023-2031 Housing Element in compliance with State law that includes a program to adopt an Inclusionary Zoning Ordinance; and WHEREAS, the Moraga Town Council convened a public meeting on May 4, 2022 to discuss tools for implementing affordable housing policies and expressed support for an inclusionary housing requirement; and
WHEREAS, the Moraga Town Council convened a public meeting on August 24, 2022 to discuss a framework for inclusionary housing and to provide direction to staff on the specific components of an Ordinance; and
WHEREAS, the Town of Moraga convened a developer roundtable on October 20, 2022 to solicit input from the development community on ways to mitigate the economic effects of an inclusionary housing requirement; and
WHEREAS, the Town finds that the housing shortage for persons of very low, low, and moderate incomes is detrimental to the public health, safety and welfare and that it is a public purpose of the Town, and a public policy of the State of California, to make an adequate supply of housing available for persons of all income groups; and WHEREAS, on November 14, 2022, the Planning Commission held a duly noticed public hearing to consider the proposed amendments related to affordable housing, received the staff report and staff presentation, received comments from the public and interested parties, and after closing the public comments portion discussed the matter; and WHEREAS, following the November 14, 2022 public hearing, the Moraga Planning Commission adopted Resolution No.##-2022, recommending that the Town Council adopt proposed amendments to Town of Moraga Municipal Code to add Chapter 8.180, Affordable Housing, as contained herein; and
WHEREAS, the Town Council received a briefing on the proposed Ordinance at its regularly scheduled meeting on November 16; and
WHEREAS, the Town Council introduced this Ordinance on
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December 7, 2022, after a duly noticed public hearing and adopted the Ordinance on December 14, 2022;

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF MORAGA
DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council finds that the proposed Municipal Code amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) in that they do not constitute a “project” as defined by CEQA since they do not have the potential to result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment.

SECTION 2. Amendment. Title 8 of the Moraga Municipal Code, Planning and Zoning, is hereby amended to add Chapter 8.180 “Affordable Housing” as follows:

CHAPTER 8.180: AFFORDABLE HOUSING

8.180.010 – Title
This chapter shall be entitled the Affordable Housing Ordinance.

8.180.020 - Purpose
The purpose of this Chapter is to establish standards and procedures to facilitate the development and availability of housing for all economic segments of the community, as required by State law. The Chapter is one of several tools to implement the Town’s Housing Element and fulfill the Town’s obligation to provide housing for very low-, low-, and moderateincome households. It is also a tool for providing housing for the Moraga workforce as well as groups with special housing needs such as college students, persons with disabilities, and older adults. This Chapter supports the State mandate to affirmatively further fair housing by ensuring that housing for lower income households is geographically dispersed and not concentrated in a single location within the Town.

8.180.030 - Definitions
For the purposes of this Chapter, the words and phrases below shall be interpreted as set forth in this section, unless it is apparent from the context that a different meaning is intended.
"Accessory Dwelling Unit," or "ADU," is defined in Chapter 8.124.020. “Affordable Housing Agreement” means a legally binding, written agreement between a Developer and the Town, in form and substance satisfactory to the Planning Director and Town Attorney, setting forth those provisions necessary to ensure that the requirements of this Chapter, whether through the provision of Inclusionary Units or through an alternative method, are satisfied.
“Affordable Housing Fund” is a separate fund of the Town into which all monies collected pursuant to this Chapter shall be deposited. Additional monies from other sources also may be deposited in the Affordable Housing Fund.

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“Affordable Housing Plan” means a plan demonstrating how an Applicant will comply with the requirements of this Chapter and containing the components listed in Section

8.180.050(B).
“Affordable Rent” means monthly rent and utility allowance, which does not exceed onetwelfth of 30 percent of the maximum annual income for a household of the applicable income level.
“Affordable Sales Price” means a sales price which results in a monthly mortgage (including principal and interest), property taxes, utilities, and homeowner association fees, where applicable, which do not exceed one-twelfth of 35 percent of the maximum annual income for a household of the applicable income level.
“Amenities” means and includes features which are not essential to the health and safety of the resident, but provide visual or aesthetic appeal, or are provided as conveniences rather than as necessities. Interior amenities may include, but are not limited to, fireplaces, garbage disposals, dishwashers, cabinet and storage space and bathrooms in excess of one. Exterior amenities include features such as patios and balconies, and common facilities accessible to a development such as fitness centers, play areas, resident community rooms, gardens, bike storage facilities or similar conveniences provided for residents of the development. Amenities do not include items required by building codes or other ordinances that are necessary to ensure the safety of the building and its residents.
“Applicant” means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which seeks Town real property development permits and approvals.
“Area Median Income” means the Area Median Income for Contra Costa County, adjusted for household size, as published by the State Department of Housing and Community Development.
“Developer” means the same as "Applicant" (see above definition). "Dwelling Unit" means a building of portion thereof that is designed, intended, or used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household. For purposes of this Chapter, "Dwelling Unit" does not include an Accessory Dwelling Unit. Dwelling Units include “For-Sale Units” and Rental Units” as defined elsewhere in this section.
"For-Sale Units” means a single-family detached Dwelling Unit or a Dwelling Unit in a multifamily Residential Development that will be offered for sale, not for rent. “Fractional Unit” is a numeric equivalent that is less than one Dwelling Unit. It is the product of the affordable housing percentage requirement multiplied by the number of units in a Residential Development and expressed to one decimal point, minus the nearest whole number below that product.
“Household” means one person living alone or two or more persons sharing residency.

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“Incentive” means a benefit offered by the Town to facilitate construction of Residential Developments which include Inclusionary Units. Among others, Incentives may include fee reductions for Inclusionary Units, density bonuses beyond State requirements, and flexibility and/or relaxation of development regulations. Incentives are adopted through a Policy Resolution.
“Inclusionary Unit” means a Dwelling Unit developed pursuant to an Affordable Housing Agreement that will be offered For-Sale or rent to Very Low-, Low- and Moderate- Income Households, at an Affordable Rent or Affordable Sales Price, as applicable, pursuant to this Chapter.
“In-Lieu Fee” means a fee paid to the Town by an Applicant for a Residential Development in the Town in lieu of providing the Inclusionary Units required by Section

8.180.040. It includes fees for Fractional Units, as defined in this Section. “Low-Income Household” means a household with an annual income between 50 percent and 80 percent of Area Median Income limits applicable to Contra Costa County, adjusted for household size, as published by the State Department of Housing and Community Development for Contra Costa County.
“Market-Rate Units” mean those Dwelling Units in a Residential Development that are not Inclusionary Units or otherwise subject to deed restrictions and income limits. “Moderate-Income Household,” means a household with an annual income between 80 percent and 120 percent of Area Median Income limits applicable to Contra Costa County, adjusted for household size, as published by the State Department of Housing and Community Development for Contra Costa County.
"Rental Unit" means a single-family detached Dwelling Unit or a Dwelling Unit in a multifamily Residential Development that will be offered for rent, not for sale. “Residential Development” means a development of six (6) or more residential units or lots for, without limitation, detached single family dwellings, multiple dwelling structures, groups of dwellings, condominium conversions, cooperative developments and land subdivisions. “Town” means the Town of Moraga or its designee, or any entity with which the Town contracts with to administer this section.
“Very Low-Income Household” means a household whose income does not exceed 50 percent of the Area Median Income limits applicable to Contra Costa County, adjusted for household size, as published by the State Department of Housing and Community Development for Contra Costa County.

8.180.040 General Requirements
Each Residential Development shall be subject to the requirements set forth in this Section.

Developments with five or fewer Dwelling Units are exempt from this Chapter.

A. For-Rent Residential Developments:
(1) At least ten (10) percent of the Rental Units shall be Inclusionary Units for occupancy by Low-Income Households; or
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(2) The Developer may propose alternate percentages of Low- and Very Low-income Rental Units to meet this requirement upon demonstration that they are of equivalent value. Satisfying the requirement with moderate-income Rental Units is not permitted.

B. For-Sale Residential Developments:
(1) At least ten (10) percent of the Dwelling Units shall be Inclusionary Units for occupancy by Moderate-Income Households. These units may be either Rental or For-Sale Units, or a combination of both. Any Rental Units that are provided shall be subject to an agreement prepared by the Applicant and approved by the Town, including provisions ensuring the long-term affordability of the units and their occupancy by a qualifying Household; or
(2) For Residential Developments in zoning districts of R-6 densities or lower, at least 25 percent of the Dwelling Units shall include Accessory Dwelling Units. These units are subject to the provisions defined in Section 8.180.090 and shall have no restrictions on income or occupancy.

C. Incentives, as specified in Section 8.180.080 shall be available to Applicants meeting the inclusionary requirements on-site.

D. Residential Developments with six (6), seven (7), eight (8), or nine (9) units shall have the option of providing one full Inclusionary Unit or paying the In-Lieu Fee in an amount equal to the following schedule for the fractional unit multiplied by the In-Lieu Fee as authorized in Section 8.180.050(D)(4).

Total Units in Project Fractional Inclusionary Unit Required 6 0.20
7 0.40
8 0.60
9 0.80
E. Applicants proposing ten (10) or more units shall calculate the required number of Inclusionary Units. In the event this calculation results in a Fractional Unit, the Developer shall have the option of either: (i) providing a full Inclusionary Unit; or (ii) paying an InLieu Fee in an amount equal to the percentage represented by the fractional unit multiplied by the In-Lieu Fee, as authorized in Section 8.180.050(D)(4).

F. Additional units authorized through a density bonus under California Government Code Section 65915(b)(1) or (b)(2) will not be counted in determining the required number of Inclusionary Units. Inclusionary requirements apply to the initial base number of units proposed.

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8.180.050 Administration
A. Applicability. Any Town action approving a Residential Development subject to this Chapter shall contain conditions sufficient to ensure compliance with the provisions of this Chapter. No building permit or final inspection shall be issued, nor any development approval granted which does not meet the requirements of this Chapter.

B. Affordable Housing Plan. Developers subject to the provisions of this Chapter shall prepare a draft Affordable Housing Plan setting forth in detail the manner in which the requirements shall be implemented as part of their development application. No discretionary approval, Town approval or building permit shall be issued until the Affordable Housing Plan has been finalized and approved by the entity approving the underlying approval or permit. The Affordable Housing Plan shall be submitted as part of the initial application and include:
(1) The location, tenure (rental or ownership) and size of the proposed Market-Rate and Inclusionary Units;
(2) The calculations used to determine the number of Inclusionary Units; (3) A floor plan or site plan depicting the location of the Inclusionary Units; (4) The affordability level for each Inclusionary Unit; (5) The term of affordability;
(6) A phasing plan for the Inclusionary Units, in the event the project includes phases; (7) A description and details of any requested density bonuses, Incentives, waivers or exemptions;
(8) The process by which eligibility of qualified Households will be reviewed and selected to rent or purchase affordable units;
(9) An annual reporting schedule; and
(10) Additional information that may be requested by the Planning Director.

C. Affordable Housing Agreement. The Developer shall execute and cause to be recorded an Affordable Housing Agreement with the Town prior to the earlier of the issuance of the first building permit or final map approval. The form of the Affordable Housing Agreement will vary depending on the manner in which the provisions of this Chapter are satisfied for a particular development and whether an Alternative is proposed and approved. All Affordable Housing Agreements for Residential Developments providing Inclusionary Units on-site must include, at a minimum, the following:
(1) Description of the development, including whether the Inclusionary Units will be rented or owner-occupied;
(2) The number, size and location of Very Low-, Low- or Moderate-income Units; (3) Inclusionary Incentives offered by the Town that are being requested, including the nature and amount of any local public funding;
(4) Provisions and/or documents for resale and/ or rental restrictions, rights of first refusal, and/or rental restrictions, and performance deeds of trust, as appropriate; H.2.c
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(5) A deed restriction or other enforceable obligation approved by the Town Attorney ensuring the ongoing affordability requirements (this requirement shall not apply to Developers of For-Sale Units using the Accessory Dwelling Unit option described in Section 8.180.90); and
(6) Provisions for monitoring the ongoing affordability of the units and the process for qualifying prospective resident Households for income eligibility.

D. In-Lieu Fees. The Town Council shall, by resolution or other action, establish an Affordable Housing In-Lieu Fee. Fees may be based on a fee per Market-Rate unit, fee per square foot, or any other reasonable basis. The fees may be periodically adjusted based on the annual percentage increase or decrease in the construction cost index since the last update.
(1) For-Sale Units. The fee amount should represent a reasonable portion of the gap between the Affordable Sales Price at the corresponding income level and the Market-Rate sales price of for-sale housing of a similar product type. (2) Rental Units, the fee amount should represent a reasonable portion of the gap between the Affordable Rent at the corresponding income level and the market-rate rent for a similar product type over the lifetime of the affordability term. (3) Affordable Housing Fund. All fees collected shall be deposited in an Affordable Housing Fund. The monies deposited in the Affordable Housing Fund must be used to increase or maintain the supply of housing affordable to very low-, low-, and moderate-income Households, including reasonable administrative or related expenses.
(4) Applicability to Fractional Units. The In-Lieu Fee shall be applied to Fractional Units that result when the inclusionary requirements are applied to Residential Development when the Applicant chooses not to build an additional Inclusionary Unit.
(5) Timing of Payment. Payment of In-Lieu Fees is due as follows:
a. For custom lot subdivisions where lots will be sold and homes will be constructed a future date, the In-Lieu Fee shall be paid at time of Final Map approval.
b. For all other Dwelling Units, the fee shall be paid to prior to building permit issuance for the project.

8.180.060 Alternatives
In lieu of including the Inclusionary Units in the Residential Development pursuant to Section

8.180.040, the requirements of this Chapter may be satisfied through the alternatives listed below. In each case, the Town Council must first find that on-site production of the Inclusionary Units is infeasible or that greater public benefit will result from the proposed alternative.

A. Off-Site Alternatives for Developer. As an alternative to providing all or a portion of the Inclusionary Units on the same site as the Residential Development, the Developer may H.2.c
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elect to construct the units off-site elsewhere in the Town of Moraga, subject to the following requirements:
(1) At least 1.5 units shall be provided for each Inclusionary Unit required. (2) The following provisions shall apply to the off-site development:
a. The off-site development shall be governed by the terms of a deed restriction limiting occupancy of the required number of units to qualified Low- or Very LowIncome households and establishing rents meeting affordability criteria for Low or Very Low-Income households.
b. Environmental review shall have been completed, including provisions to mitigate any hazardous materials or geologic conditions, to the satisfaction of the Town . c. If applicable, the off-site units shall include a declaration of covenants, conditions, and restrictions similar to that required for on-site Inclusionary Units. d. Construction of the off-site Inclusionary Units shall be completed prior to the issuance of the first certificate of occupancy of the Residential Development, e. The off-site parcel shall have General Plan and zoning densities equivalent to R6 or higher.

B. Agreement with Non-Profit Developer. As an alternative to providing all or a portion of the Inclusionary Units on the same site as the Residential Development, the Developer may enter into an agreement with a non-profit developer to (i) fund a portion of a proposed affordable housing project in Moraga; or (ii) to provide a land donation for the construction of affordable housing units on an alternative site in the Town of Moraga, subject to the following requirements:
(1) At least 1.5 units shall be provided for each Inclusionary Unit required. (2) The value of the land donation and/or funding shall be approximately equivalent to or greater than the Developer cost associated with Alternative (A) described above. (3) The Developer and the Non-Profit Housing Developer shall enter into a signed written agreement to construct the required Inclusionary Units at the time of project entitlement.
(4) The following provisions shall apply to the off-site residential development:
a. The off-site development shall be governed by the terms of a deed restriction limiting occupancy of the required number of units to qualified Low or Very Lowincome households and establishing rents meeting affordability criteria for Low or Very Low-income households.
b. If applicable, the off-site units shall include a declaration of covenants, conditions and restrictions similar to that required for on-site Inclusionary Units. c. In the event that off-site construction is used, the Affordable Housing Agreement shall include a construction schedule which ensures the off-site units will be available for occupancy concurrently with the Market-Rate Units. Where concurrent construction cannot be guaranteed, an alternate method may be used to ensure construction within three years of occupancy of the Residential Development.

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Packet Pg. 249 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) Ordinance No. XX-2022 A-10 December 7, 2022
d. The off-site parcel shall have General Plan and zoning densities equivalent to R6 or higher.

C. Acquisition, Rehabilitation, and Deed Restriction of Existing Multi-Family Housing Units.

As an alternative to providing all or a portion of the Inclusionary Units on the same site as the Residential Development, the Developer may acquire housing units on an alternative site in Moraga and rehabilitate and deed restrict the units as affordable units, subject to the following requirements:
(1) At least 2.0 rehabilitated units shall be provided for each Inclusionary Unit required. (2) The following provisions shall apply:
a. The off-site development shall be governed by the terms of a deed restriction limiting occupancy of the required number of units to qualified Low or Very Lowincome households and establishing rents meeting affordability criteria for Low or Very Low-income households.
b. If applicable, the off-site units shall include a declaration of covenants, conditions and restrictions similar to that required for on-site Inclusionary Units. c. The Affordable Housing Agreement shall include a schedule which ensures the off-site units will be available for occupancy concurrently with the Market-Rate project. Where concurrent implementation cannot be guaranteed, an alternate method may be used to ensure implementation within three years of occupancy of the Residential Development.
d. With respect to rehabilitation, a tenant displacement reduction plan shall be prepared by the Developer, including relocation assistance and first right of return for impacted tenants.

D. In-Lieu Fee for Projects in Very High Fire Severity Zones (VHFSZ). Applicants of projects in a VHFSZ as determined by CAL FIRE may at their discretion, select to pay an in-lieu fee as an alternative to constructing the affordable units on-site, off-site, or through Accessory Dwelling Units (ADUs). Nothing in this provision precludes the owner from including ADUs in their project, as permitted by State law.

E. Alternate Methods of Compliance. Applicants may propose creative concepts for meeting the requirements of this Chapter, whether on or off-site. The Town Council may approve such alternate methods if the Applicant demonstrates that the purpose of this Chapter (as set forth in Section 8.18.020) has been met.

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Packet Pg. 250 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) Ordinance No. XX-2022 A-11 December 7, 2022

8.180.070 Standards
A. Term of Affordability. For-Sale Inclusionary Units shall be deed restricted pursuant to this Chapter for a period not less than 45 years. Rental Inclusionary Units shall be deed restricted pursuant to this Chapter for a period not less than 55 years.

B. Design. The following requirements shall apply:
(1) Inclusionary Units should be reasonably dispersed throughout the entirety of the Residential Development.
(2) Inclusionary Units should be comparable in terms of bedroom count to the MarketRate units, excluding ADUs. However, on-site Rental Units may be up to 20% smaller than the Market-Rate Units in the Residential Development project and onsite For-Sale Units may be up to 30% smaller than the Market-Rate Units in the Residential Development.
(3) The exterior design and character of the Inclusionary Units shall be substantially consistent with that of the Market-Rate Units in the Residential Development. (4) Interior Finishes. Inclusionary Units may have different interior finishes than Market Rate units so long as the interior finishes are durable, of good quality and consistent with current State building code standards for new housing. (5) The Inclusionary Units must have access to all Amenities available to the MarketRate Units.

C. Timing. Inclusionary Units must be constructed prior to or concurrently with the construction of the Market-Rate Units. In the event the Town approves a phased project, the Inclusionary Units required by this Chapter shall be constructed and occupied in proportion to the number of units in each phase of the Residential Development. In no case shall an Affordable Housing Unit be the final Dwelling Unit issued a Certificate of Occupancy of a Residential Development or its approved phase(s).

D. Segmentation. Segmentation of a project to avoid the requirements of this Chapter is not permitted. Construction of proximate Dwelling Units within any five-year period for which there is evidence of common ownership, control or interest, whether or not covered by the same land use entitlements, shall be subject to the regulations of this Chapter. However, nothing herein shall prohibit the phased development of a project, as approved by the Town.

8.180.080 Incentives
The Town shall make available to the Applicant Incentives to increase the feasibility of Residential Developments to provide Inclusionary Units. These Incentives shall only be available to Applicants who construct the Inclusionary Units on-site:

A. Fee Deferral. The Town Council, by resolution, may defer payment of Town of Moraga development impact fees (e.g. General Government, Public Safety, Park Development, Storm Drain, Parkland Development, the Lamorinda Fee and Finance Authority Fee, H.2.c
Packet Pg. 251 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) Ordinance No. XX-2022 A-12 December 7, 2022
etc.) applicable to the Residential Development of which they are a part. Development impact fees for each unit shall be paid no later than the time of transfer of the unit to the first occupant, or at the time a certificate of occupancy is issued for Rental Units. The Developer and Town shall enter into a fee deferral agreement to be recorded against the real property prior to building permit issuance that restricts the transfer of any Dwelling Unit until all development fees for that parcel have been paid in full.

B. Incentives. Density bonuses and reduced parking requirements shall be available to projects meeting the requirements of this Chapter by providing Inclusionary Units onsite, in accordance with a schedule of Incentives to be adopted through a Moraga Affordable Housing Incentive Policy Resolution by the Town. Incentives shall be consistent with and may exceed the concessions and waivers available through State Density Bonus Law. Such Incentives may include but are not limited to:
(1) Increased height/stories
(2) Reduced setbacks or stepbacks
(3) Reduced private open space requirements
(4) Increased floor area ratio, where applicable
(5) Increased lot coverage

8.180.090 Accessory Dwelling Unit (ADU) Alternative Means of Compliance As indicated in Section 8.180.040(B)(2), an Applicant constructing a For-Sale Residential Development in any zoning district with densities equivalent to R-6 or lower may fulfill a development’s inclusionary housing requirements with the development of Accessory Dwelling Units, as set forth in this section.

A. Applicability. The provisions of this section shall apply to all new For-Sale Residential Developments with six or more units in the RR, R-1 DUA, R-2 DUA, R-3 DUA, and R-6 zoning districts.

B. Scope. Developers shall include Accessory Dwelling Units (ADUs) in a minimum of 25 percent of all primary units in the Residential Development. Such ADUs shall be at least 500 square feet in floor area, or no less than the maximum allowable size of Junior ADUs established by State law, whichever is less. Junior Accessory Dwelling Units (Junior ADUs) shall be ineligible to meet this requirement. In the event the number of required ADUs is not a whole number, the number of units shall be rounded up to the nearest whole number regardless of the fractional amount. No restrictions on occupancy or the income of occupants shall be required.

C. Ineligibility for Density Bonus. Developers providing ADUs as provided in this Section to meet their affordable housing requirements shall be ineligible for density bonuses or Incentives.

D. Design Parameters. Any ADUs constructed pursuant to this Section shall meet the design and development standards at Chapter 8.124 of the Municipal Code (Accessory Dwelling Units).

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Packet Pg. 252 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) Ordinance No. XX-2022 A-13 December 7, 2022
E. Reporting. The Town may, from time to time, request that the owner of each unit ADU subject to this Section report the occupancy status of the ADU using a Town-supplied reporting form.

8.180.100 Waivers
A. The requirements of this Chapter may be waived, adjusted, or reduced if a Developer shows, based on substantial evidence, that there is no reasonable relationship between the impact of a proposed Residential Development and the requirements of this Chapter, or that applying the requirements of this Chapter would take property in violation of the United States or California Constitutions.

B. Any request for a waiver, adjustment, or reduction under this section shall be submitted to the Town concurrently with the Affordable Housing Plan required by Section

8.180.050(B). The request for a waiver, adjustment, or reduction shall set forth in detail the factual and legal basis for the claim.

C. The request for a waiver, adjustment, or reduction shall be reviewed and considered in the same manner and at the same time as the Affordable Housing Plan.

D. In making a determination on an application for waiver, adjustment, or reduction, the Developer shall bear the burden of presenting substantial evidence to support the claim.

The waiver, adjustment or reduction may be approved only to the extent necessary to avoid an unconstitutional result, after adoption of written findings, based on substantial evidence, supporting the determinations required by this section.

8.180.110 Enforcement
A. Applicability. The provisions of this Chapter shall apply to all agents, successors and assigns of an Applicant.

B.

Enforcing Authority. The Town Manager or their designee is the enforcing authority for this Chapter. The Town Manager may suspend or revoke any building permit or approval upon finding a violation of any provision of this Chapter.

C. Excessive Sales Price and Rents/Legal Action. It is unlawful, a public nuisance and a misdemeanor for any person to sell or rent an Inclusionary Unit at a price or rent exceeding the maximum allowed under this Chapter or to a household not qualified under this Chapter. If the Town determines that the sales price or rents in excess of those allowed by operation of this Chapter have been charged to a household residing in an affordable unit, the Town may take appropriate legal action.

SECTION 3. Effective Date. This Ordinance becomes effective thirty (30) days after its final passage and adoption.

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Packet Pg. 253 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) Ordinance No. XX-2022 A-14 December 7, 2022
SECTION 4. Severability. If any provision of the Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provisions or applications of the Ordinance. To this end, the provisions of this Ordinance are severable. This Town Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.

SECTION 6. Publication. The Town Clerk shall cause this Ordinance to be published in accordance with State law.

The foregoing Ordinance was introduced at a regular meeting of the Town Council of the Town of Moraga, California, held on December 7, 2022, and was adopted and ordered published at a regular meeting of the Town Council held on December 14, 2022 by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Recused:
____________________________
Steve Woehleke, Mayor
ATTEST:
___________________________________
Yashin Abbas, Interim Town Clerk
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Packet Pg. 254 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options)

ATTACHMENT B
Draft Development Incentives Policy Resolution for Projects Meeting the Town’s Affordable Housing Requirements On-Site H.2.c
Packet Pg. 255 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) B-2
Development Incentives Policy
Developers meeting the Town’s affordable housing requirements on-site shall be eligible for the density bonuses listed below. Developers meeting the requirements through an Alternative means of compliance as defined in Section 8.180.060 of the Moraga Municipal Code shall not be eligible for local bonuses. Projects with five units or fewer shall likewise be ineligible for local bonuses.

State Density Bonus Law (SDBL) requires that projects receiving low-income housing density bonuses must be affordable to households earning 60 percent of Areawide Median Income (AMI) or lower. As an incentive, the Town of Moraga will award equivalent density bonuses for projects serving households earning 80 percent of AMI or less. In addition, the Town will offer a supplemental local density bonus which may be added to the State bonus for projects providing on-site inclusionary units. The tables below represent the aggregate of the State Density Bonus and an additional Town of Moraga bonus for various housing types. As the table indicates, higher bonuses are provided for housing types identified in the 2023-2031 Housing Element as being particularly important to the Town.

R-24 Zoning District:

Housing Type Base
Density
(General
Plan and
Zoning)
State Density
Bonus
Available to
Projects
providing
10% low
income (*)
State
Density
Bonus
Available to
Projects
providing
10%
moderate(*)
Town of Moraga
Supplemental
Bonus for
Projects
meeting the
inclusionary
requirement onsite
Total
Bonus
Allowable
Density
with
Local
Bonus
Rental Housing,
General
24 DUA 20% N/A 5% 25% 30 DUA
Rental Housing,
Senior
30 DUA 20% N/A N/A (**) 20% 36 DUA
Rental Housing,
Student
24 DUA 35% N/A 15% 50% 36 DUA
For-Sale
Housing, Senior
30 DUA N/A 15% 5% 20% 36 DUA
DUA= Dwelling Units Per Acre
Attachment B
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Packet Pg. 256 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) B-3
MSCP MU-RR, MSCP MU-OR zoning districts, and for the Rheem Center Commercial/Residential (RM-CR), and Rheem Center Office/Residential (RM-OR) zoning districts once established:

Housing Type Base
Density
(General
Plan and
Zoning)
State Density
Bonus
Available to
Projects
providing
10% low
income (*)
State
Density
Bonus
Available to
Projects
providing
10%
moderate(*)
Town of Moraga
Supplemental
Bonus for
Projects
meeting the
inclusionary
requirement onsite
Total
Bonus
Allowable
Density
with
Local
Bonus
Rental Housing,
General
24 DUA 20% N/A 5% 25% 30 DUA
Rental Housing,
Senior
24 DUA 20% N/A 30% 50% 36 DUA
Rental Housing,
Student
24 DUA 35% N/A 15% 50% 36 DUA
For-Sale
Housing, Senior
24 DUA N/A 15% 35% 50% 36 DUA
DUA= Dwelling Units Per Acre
R-20 Zoning District:

Housing Type Base
Density
(General
Plan and
Zoning)
State Density
Bonus
Available to
Projects
providing
10% low
income (*)
State
Density
Bonus
Available to
Projects
providing
10%
moderate(*)
Town of Moraga
Supplemental
Bonus for
Projects
meeting the
inclusionary
requirement onsite
Total
Bonus
Allowable
Density
with
Local
Bonus
Rental Housing,
General
20 DUA 20% N/A 5% 25% 25 DUA
Rental Housing,
Senior
30 DUA 20% N/A N/A (**) 20% 36 DUA
Rental Housing,
Student
20 DUA 35% N/A 15% 50% 30 DUA
For-Sale
Housing, Senior
30 DUA N/A 15% 5% 20% 36 DUA
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Packet Pg. 257 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) B-4
R-12 Zoning District:

Housing Type Base
Density
(General
Plan and
Zoning)
State Density
Bonus
Available to
Projects
providing
10% low
income (*)
State
Density
Bonus
Available to
Projects
providing
10%
moderate(*)
Town of Moraga
Supplemental
Bonus for
Projects
meeting the
inclusionary
requirement onsite
Total
Bonus
Allowable
Density
with
Local
Bonus
Rental Housing,
General
12 DUA 20% N/A 5% 25% 15 DUA
Rental Housing,
Senior
12 DUA 20% N/A 5% 25% 15 DUA
Rental Housing,
Student
12 DUA 35% N/A 0% 35% 16 DUA
For-Sale
Housing, Senior
12 DUA N/A 15% 10% 25% 15 DUA
MCSP R-6 Zoning District:

Housing Type Base
Density
(General
Plan and
Zoning)
State Density
Bonus
Available to
Projects
providing
10% low
income (*)
State
Density
Bonus
Available to
Projects
providing
10%
moderate(*)
Town of Moraga
Supplemental
Bonus for
Projects
meeting the
inclusionary
requirement onsite
Total
Bonus
Allowable
Density
with
Local
Bonus
Rental Housing,
General
6 DUA 20% N/A 13.4% 33.4% 8 DUA
Rental Housing,
Senior
6 DUA 20% N/A 13.4% 33.4% 8 DUA
Rental Housing,
Student
6 DUA 35% N/A 0% 35% 8 DUA
For-Sale
Housing, Senior
6 DUA N/A 15% 18.4% 33.4% 8 DUA
(*) For the purposes of these tables, low-Income is defined as 80% of AMI and moderate-income is defined as 120% of AMI, adjusted for household size.
(**) For senior housing in the R-20 and R24 zoning districts, the Town’s zoning already establishes a base density of 30 DUA, which is higher than the density allowed for other housing types. Thus, a supplemental local bonus is not provided for senior housing. Such projects may use the State Density Bonus of 20 percent to achieve 36 DUA.

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Packet Pg. 258 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) B-5
Parking
In addition to the density bonus, such projects shall be entitled to use State Density Bonus parking requirements for lower income housing for projects serving households up to 80 % of AMI, rather than the 60% AMI required by the State. The parking requirements are:
• Studio and One-Bedroom: 1 space
• Two or Three Bedrooms: 1.5 space
• Four Bedrooms: 2.5 spaces
Concession or Incentive
Consistent with State Density Bonus Law, applicants who meet the 10% affordable housing requirement on-site are also automatically eligible for one concession or incentive. Only one incentive may be requested unless deeper levels of affordability are provided. Developers seeking relief from other development standards may request waivers as allowed by State Density Bonus Law.

Examples of desired incentives include but are not limited to:
(1) Increased height/ stories
(2) Reduced setbacks or stepbacks
(3) Reduced private open space requirements
(4) Increased floor area ratio, where applicable
(5) Increased lot coverage
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Packet Pg. 259 Attachment: Attachment C - Moraga Affordable Housing Ord (3114 : Inclusionary Housing Ordinance Options) 1 1 2 Meeting Date: February 22, 2022
3 4
5 TOWN OF MORAGA STAFF REPORT
6 7 To: Honorable Mayor and Councilmembers
8 9 From: Afshan Hamid, AICP, Planning Director
10 Barry Miller, FAICP, Planning Consultant
11 David Doezema, Keyser Marston Associates, Inc
12 13 Subject: Study Session on Establishing a Fractional In Lieu Fee in Accordance 14 with the Town’s Affordable Housing Ordinance
15 16 CEQA: The project is consistent with the previously certified Environmental 17 Impact Report for the Comprehensive Advanced Planning Initiative and is 18 categorically exempt under the California Environmental Quality Act 19 Guidelines 15061(b)(3) and is covered by the commonsense exemption. 20 21 Request
22 23 Receive an informational report on the proposed Affordable Housing Fractional In Lieu 24 Fees pursuant to the adopted Affordable Housing Chapter 8.180 in the Moraga Municipal 25 Code, which created requirements for affordable housing in new residential development 26 of six units or more. The Town Council adopted Chapter 8.180 on December 14, 2022, 27 and it went into effect on January 13, 2023.
28 29 Background
30 31 On December 14, the Town Council adopted an Affordable Housing Ordinance 32 (Ordinance) to increase affordable housing production and meet a new State requirement 33 to Affirmatively Furthering Fair Housing (AFFH). The Ordinance requires developers to 34 provide a percentage of new residential units at a price that is considered affordable to 35 very low-, low-, or moderate-income households. The “Inclusionary” units will have deed 36 restrictions that limit the rent (or sales price) that may be charged, as well as the annual 37 income of the tenant (or purchaser). Inclusionary Housing is a tool to help the Town meet 38 its Regional Housing Needs Allocation (RHNA) goal of 1,118 new units. Over 60 percent 39 of the Town’s RHNA goal is comprised of housing units that are affordable to lower- and 40 moderate-income households. The detailed December 7, 2022 staff report for the 41 Affordable Housing Ordinance may be accessed here.
42 43 The Ordinance gives the Town Council the authority to adopt a fractional in-lieu fee. The 44 primary purpose is to address situations where the inclusionary requirement does not Town of Moraga Agenda Item
Ordinances,
Resolutions,
Requests for Action

10.C
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Packet Pg. 260 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 2 1 result in a whole number of affordable units that are required. Projects with a fractional 2 inclusionary unit requirement are eligible to either pay an in-lieu fee for the fractional unit 3 or provide a whole inclusionary unit. For example, if an applicant proposed a 24-unit rental 4 project, the 10% inclusionary requirement represents 2.4 lower income units. Since 5 dwelling units are counted in whole numbers, the “fractional” remainder of 0.4 units could 6 either be satisfied through payment of an the proposed fractional in-lieu fee or the 7 applicant could choose to round up and provide 3 affordable units within the project. In 8 this instance, the requirement for 2.4 units would mean two affordable units would be 9 provided and the applicant would pay a fee equal to four-tenths of a dwelling unit. 10 11 The amount of the fee has not yet been established and must be determined by the Town 12 Council. The basis for the fee is included in the Ordinance. It represents the gap between 13 the market-rate price (sales or rent) and the affordable price (sales or rent) of the 14 inclusionary unit. At the December 7 meeting, staff shared that a study is required for the 15 in lieu fees and it would be brought to Council as a future separate action. Since the 16 December meeting, staff contracted with Keyser Marston Associates, Inc. (KMA) on an 17 Inclusionary Housing Fee Calculation memorandum (see Attachment B). 18 19 Section 8.180.040 identifies the General Requirements for the program, including the 20 types of projects that are covered (and exemptions), and the percentage of affordable 21 units that are required. Recognizing economic considerations, the Ordinance has 22 different requirements for for-rent and for-sale housing and allows flexibility in the 23 percentages of affordable units to be provided based on the depth of affordability. This 24 section also addresses “fractional” units.
25 26 Section 8.180.050 addresses Administration of the program, including requirements for 27 inclusionary housing plans and agreements. The agreements establish resale restrictions 28 for inclusionary for-sale units, and rental restrictions for rental units, as well as provisions 29 to monitor compliance once units are created. A summary of the Ordinance specific to In 30 Lieu Fees is as follows:
31 32 1. Applicability to rental vs ownership units (most ordinances apply to both). Council 33 direction was to apply the affordable requirement to both rental and ownership 34 units.
35 2. Exemptions (small projects may be exempt from the ordinance). Council direction 36 was to provide an exemption for projects with five or fewer units for inclusionary 37 units, with no fee collected for these projects.
38 3. Residential Developments with 6 (six), 7 (seven), 8 (eight), or 9 (nine) units shall 39 have the option of providing one full Inclusionary Unit or paying the In-Lieu Fee in 40 an amount equal to the following schedule:
41 42 Total Units in Project Fractional Inclusionary Unit Required 43 6 0.20
44 7 0.40
45 8 0.60
46 9 0.80
47 4. Applicants proposing ten (10) or more units shall calculate the required number 48 of Inclusionary Units. In the event this calculation results in a Fractional Unit, the H.2.d
Packet Pg. 261 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 3 1 Developer shall have the option or either: (i) providing a full Inclusionary Unit; or 2 (ii) paying an In Lieu Fee in an amount equal to the percentage represented by 3 the fractional unit multiplied by the In Lieu Fee
4 5. For-Sale Units. The fee amount should represent a reasonable portion of the gap 5 between the Affordable Sales Price at the corresponding income level and the 6 Market-Rate sales price of for-sale housing of a similar product type. 7 6. Rental Units. The fee amount should represent a reasonable portion of the gap 8 between the Affordable Rent at the corresponding income level and the market9 rate rent for a similar product type over the lifetime of the affordability term. 10 7. In Lieu Fee for Projects in Very High Fire Severity Zones (VHFSZ). Applicants of 11 projects in a VHFSZ as determined by CALFIRE may at their discretion, select to 12 pay an in-lieu fee as an alternative to constructing the affordable units on -site, off13 site, or through Accessory Dwelling Units (ADUs). Nothing in this provision 14 precludes the owner from including ADUs in their project, as permitted by State 15 Law.
16 17 Exemptions/ Applicability
18 19 Per the Ordinance, inclusionary requirements and in-lieu fees do not apply to projects of 20 five or fewer units. The Ordinance applies Town-wide, but projects in lower density zones 21 would have the option of meeting the inclusionary requirement through 25% Accessory 22 Dwelling Units (ADUs). No rent or income restrictions would apply to the ADUs and they 23 may be used at the owner’s discretion (rental of the ADUs is not required). 24 25 The focus of this report is the methodology and fee calculation as set forth in the KMA 26 memorandum (Attachment B).
27 28 Discussion
29 30 Based on a review of inclusionary housing fees in other communities, there are two 31 primary ways of calculating the fee—on a square foot basis or on a dwelling unit basis. 32 The square foot basis was used in this case, as it is more equitable and places a lower 33 burden on smaller units. A 1,000 square foot condominium would be subject to a much 34 lower fee than 3,000 square foot home; this would not be the case if the fee was based 35 on the number of dwelling units in the project. This square foot basis allows the fee to 36 scale with the size of the market rate units and avoids creating a disincentive for smaller 37 more affordable market rate units.
38 39 The KMA memo and appendix is extensive and provides a comprehensive methodology 40 and calculations to determine an in-lieu fee consistent with the requirements of the 41 Ordinance. The KMA overall basis for the affordable housing in-lieu fee was calculated to 42 be $39.00 per square foot for for-sale projects and $25.00 per square foot for rental 43 projects. These figures represent the gross per square foot in-lieu that would apply if no 44 affordable units were provided by the project. The gross in-lieu fee amounts are adjusted 45 downward based on the portion of the overall inclusionary requirement to be satisfied with 46 fractional unit in-lieu fees. Gross in-lieu fees are also adjusted downward for smaller six 47 to nine unit projects based on the fractional unit requirements specified in the Ordinance.

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Packet Pg. 262 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 4 1 The basis for the fee is described below, first for for-sale projects and then for rental 2 projects.
3 4 For-Sale Projects Gross in-lieu fee
5 6 a. The methodology is as follows: Estimate the average market rate sales 7 price for Moraga.
8 b. Determine the average square footage for new units in Moraga 9 c. Determine the sales price that would be considered “affordable” to a 10 moderate income household
11 d. Calculate the for-sale affordability gap by subtracting the (c) affordable 12 sales price from the (a) market rates sales price
13 e. Apply the required inclusionary percentage (10%) to (d) affordability 14 gap and divide the result by (b) average unit square feet to calculate the 15 gross-lieu fee applied to for sale projects
16 17 The data points for (a) through (e) are shown below:
18 Gross In-Lieu Fee Calculation, For Sale
a. Average sales price for newer units in Moraga $1,798,000 b. Average net square footage 3,040 sq. ft.
c. Affordable sales price (Moderate) $612,000
d. Affordability Gap (a. – c.) $1,186,000
e. Gross In-Lieu Fee, For-Sale = affordability gap
(d.) x inclusionary % (10%) ÷ avg unit sq. ft. (b.)
$39 per sq. ft.
19 20
21 Rental Projects Gross in-lieu fee
22 23 a. The methodology is as follows: Determine average unit square feet for 24 rental apartments in Moraga
b. Identify market rents for existing apartments in Moraga1 25 , which are 26 primarily built in 1960s and 1970s
27 c. Estimate market rents for newly built apartments in Moraga 28 • Rents for new apartments are estimated based on applying a 50% 29 premium to rents for older existing units in Moraga. This premium 30 is estimated based on a comparison of rents for older and newly 31 built units in Walnut Creek. This step is necessary because no 32 recently built market rate apartments were identified in Moraga 33 d. Determine the rent that would be considered “affordable” to a lower 34 income household (assuming 30% of income set aside for housing costs). 35 e. Calculate the annual rent difference by subtracting the monthly affordable 36 rent from the monthly market rate rent, and then multiplying by 12 37 f. Calculate the rental affordability gap as the forgone project value 38 associated with setting aside an affordable housing unit. 39 The calculation is based on:
1 Nearly all Moraga apartments were built in the 1960s and 1970s. Used market rates for new apartments in Walnut Creek to estimate rent premium for new apartments built in Moraga H.2.d
Packet Pg. 263 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 5 1 dividing the annual rent difference by a 4% capitalization rate 2 based on averages reported for the submarket
3 g. Multiply the affordability gap by the inclusionary percentage (10%) and 4 divide by (a) average unit per square feet to determine the gross in-lieu 5 fee for rental projects
6 7 The data points for (a) through (g) are shown below:
8 Gross In-Lieu Fee Calculation, For Rent
a. Average rental unit square feet 1,028 sq. ft.
b. Identify market rate rents for current apartments in Moraga.
$2,110
c. Apply a 50% premium to current rents to determine
market rates for new apartments ($2,110 x 50%)
$3,165
d. Calculate affordable monthly rent for a low-income
household (per 30% of monthly income, etc.)
$2,300
e. Subtract monthly affordable rent ($2,300) from market rate rent ($3,165)
$865
f. Multiply monthly difference ($865) x 12 to calculate annual rent difference
$10,382
g. Divide annual rent difference ($10,382) by capitalization rate (4%)2 to determine the capitalized value of rent
difference
$260,000
h. Multiply affordability gap ($260,000) x inclusionary percentage (10%) ÷ average unit square feet (1,028 sq.
ft.) =Gross In-lieu for rental projects
$25 per sq. ft.
9 10 Fee Calculation for Typical Projects
11 12 A number of examples are provided below to explain how the fees would apply to actual 13 projects. The examples used are a 24-unit townhome project (average unit size of 2,200 14 SF), a 42-unit rental project (average unit size of 1,200 SF), and a 66-unit rental apartment 15 project (average unit size of 900 SF).
16 17 Case Study: 24 unit for-sale townhome project (2,200 SF each, or total net area of 52,800 18 square feet in the entire project)
19 20 The applicant is obligated to provide 2.4 units affordable to moderate income households 21 (10 percent). The applicant could meet this obligation by rounding the 2.4 up to three 22 affordable units or by providing two affordable units and paying an in-lieu fee equivalent 23 to 0.4 units. The affordable units would be sold to qualifying buyers at moderate income 24 prices (roughly $612,000) and the remaining units would sell at market rates. 25 26 Assuming the developer chose to pay the in-lieu fee, the fee amount would be $343,200. 27 This is essentially four-tenths of the “gap” between one market-rate unit and one 2 4% average capitalization rate reported by Costar for apartment properties sold in the prior one-year period within the Walnut Creek submarket.

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Packet Pg. 264 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 6 1 subsidized unit in the project. The cost is calculated by applying the unit cost of $39 per 2 square foot as follows:
3 4 0.4/2.4 x $39 x 52,800 = $343,200
5 (Fractional amount / Total requirement) x in-lieu fee x project area 6 7 Case Study: 42-unit apartment project (1,200 SF each, or total net area of 50,400 SF in 8 the entire project)
9 10 The applicant is obligated to provide 4.2 units affordable to lower income households (10 11 percent). The applicant could meet this obligation by rounding the 4.2 up to five affordable 12 units or by providing four affordable units and paying an in-lieu fee equivalent to 0.2 units. 13 The affordable units would be rented to qualifying buyers at lower-income rents (roughly 14 $2,300) and the remaining units would rent at market rates. 15 16 Assuming the developer chose to pay the in-lieu fee, the amount would be $60,000. This 17 is essentially two-tenths of the “gap” between one market-rate unit and one subsidized 18 unit in the project. The cost is calculated by applying the unit cost of $25 per square foot 19 as follows:
20 21 0.2/4.2 x $25 x 50,400 = $60,000
22 (Fractional amount / Total requirement) x in-lieu fee x project area 23 24 Case Study: 66-unit apartment project (900 SF each, or total net area of 59,400 SF in the 25 entire project)
26 27 The applicant is obligated to provide 6.6 units affordable to lower income households (10 28 percent). The applicant could meet this obligation by rounding the 6.6 up to seven 29 affordable units or by providing six affordable units and paying an in-lieu fee equivalent 30 to 0.6 units. The affordable units would be rented to qualifying buyers at lower-income 31 rents (roughly $2,300) and the remaining units would rent at market rates. 32 33 Assuming the developer chose to pay the in-lieu fee, the amount would be $135,000. 34 This is essentially six-tenths of the “gap” between one market-rate unit and one 35 subsidized unit in the project. The cost is calculated by applying the unit cost of $25 per 36 square foot as follows:
37 38 0.6/6.6 x $25 x 59,400 = $135,000
39 (Fractional amount / Total requirement) x in-lieu fee x project area 40 41 Six to Nine Unit Projects
42 For projects with six (6) to nine (9) units either a full inclusionary unit is required or an in 43 lieu fee may be paid. Based on Table 1 in the KMA memorandum (see Attachment B, 44 page 2), the fees for rental units would range from $8.30 per square foot in a 6-unit project 45 to $22.20 per square foot in a 9-unit project. The fees for for-sale units would range from 46 $13.00 per square foot in a 6-unit project to $34.70 per square foot in a 9-unit project. 47 These requirements would primarily only be applied in the event small multi-family 48 projects or townhomes are proposed. It is expected that single family detached projects 49 of six to nine units will generally provide ADUs in lieu of meeting these requirements. The H.2.d
Packet Pg. 265 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 7 1 Town is not expecting many projects in this range to be submitted based on past 2 submittals.
3 4 Custom Lot / Single Family Subdivision
5 For a subdivision in a zoning district that is RR, R-1, R-2, R-3, or R-6, an alternate means 6 of compliance provision has been provided to applicants. This alternate is to include 7 ADUs in 25 percent of the units rather than dedicating deed-restricted affordable units. 8 Based on cost, the ADU option is expected to be more attractive than dedicating 9 moderate-income for-sale units within the subdivision. 10 11 In subdivisions affordable housing is applicable in two scenarios, by providing 25% ADUs 12 of residences in a custom lot subdivision or in a Very High Fire Severity Zone (VHFSZ). 13 Recent CAL FIRE maps have been updated for the State responsibility areas. Moraga 14 Orinda Fire District (MOFD) will use the existing maps until local maps are adopted. 15 16 The developer does have the option of paying a fractional in-lieu fee, should they choose 17 to dedicate affordable units within their project. In such instances, the fees are due at 18 Final Map. The method and amount of the fee calculation is the same as was described 19 in the examples above. The fee represents a reasonable portion of the gap between the 20 Affordable Sale Price at the corresponding income level and the Market-Rate sales price 21 of For-Sale Housing.
22 23 The fractional fee option is not available to developers meeting the requirement through 24 ADUs. In other words, a 21-lot subdivision would need to include ADUs in six of the 25 homes, even though the 25 percent requirement yields 5.25 units. 26 27 Comparison of Other Cities
28 Staff conducted an analysis of in lieu fees and fractional in lieu fees for 21 East Bay 29 jurisdictions. Each jurisdiction varies in how it applies fees and at the threshold of how it 30 applies fees. Due to the sixth cycle, Housing Element, many jurisdictions are either re31 visiting or establishing in-lieu policies and fees. Clayton, Orinda, Lafayette and Danville 32 are currently in the process of updating or establishing the in lieu fees. Antioch, Hercules, 33 Martinez, Oakley, Pinole and Pittsburg are still working on their Housing Elements so the 34 in lieu policy and fees are not known at this time. San Pablo does not have in lieu fees as 35 the City meets affordable housing goals and most projects that are submitted have 36 affordable housing included. The remaining Cities that have inclusionary in lieu fees 37 adopted as first generation of fees are now in the process of updating, and re-considering 38 the approach to affordable housing fees. The information is in the table below. 39 40
For Sale For Rent sq. ft.

Brentwood $22.88 sq. ft. $28.72
Concord $ 9.00 sq. ft. Only when 600 or more units
are built
Contra Costa
County
$6,600.06 per market rate
unit
$24,200.55 per market rate unit
El Cerrito $22.88 sq. ft. $28.72 sq. ft.

Fremont $44.00 sq. ft. $27.00
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Packet Pg. 266 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 8 $27 sq. ft. for stacked flat
does not include additional
impact fees
$8.75 (up to 700 sq. ft.)
Pleasant Hill $271,350 for each unit
Note these have not been
updated for some time
Fractional is from the amount
listed,
Note these have not been
updated for some time
Richmond $12.00 sq. ft.

San Ramon 15% of units have to be
affordable. Don’t allow for
fees, only allow buildouts.

Most projects are 30 units
and more. Currently updating
fees with KMA and will adjust.

Most future projects
anticipated for MF, and will
ask for a higher fee.
15% of units have to be
affordable. Currently updating
fees
Walnut Creek $26.86 sq. ft.

Includes commercial linkage
fees
Needs to be updated
$26.86 sq. ft.

Includes commercial linkage
fees
Needs to be updated
1 2 Next Steps
3 4 Staff is requesting input and feedback at the February 22 meeting. Staff will continue to 5 reach out to developers for input. Once direction is provided, staff will bring the revised 6 report, recommendation and Resolution for Council adoption. 7 8 California Environmental Quality Act
9 10 The project is consistent with the previously certified Environmental Impact Report for the 11 Comprehensive Advanced Planning Initiative and is categorically exempt under the 12 California Environmental Quality Act Guidelines15061(b)(3) and is covered by the 13 common sense exemption.
14 15 Fiscal Impact
16 17 Adoption of affordable housing requirements will require the collection of fees for 18 fractional units and the adoption of an in-lieu fee. A dedicated Affordable Housing Fund 19 (Fund 791) would be created by the Town as a repository for these fees. As they accrue, 20 the fees would be used to support Housing Element programs and potentially provide a 21 supplemental funding source for non-profit affordable housing developers. There would 22 be additional costs associated with administering affordable housing requirements, 23 reviewing affordable housing plans and Agreements, and monitoring compliance with the 24 program. Some of these functions could be carried out by third parties, as the Town has 25 limited staff capacity.
26 27 Recommendations
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Packet Pg. 267 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 9 1
2 Accept the informational report and provide guidance and feedback to staff. This feedback 3 will inform the proposed resolution, which is scheduled to be brought to the Council in 4 March/April timeframe.
5 6 Report reviewed by: Brian Dolan, Interim Town Manager 7 Karen Murphy, Assistant City Attorney
8 9 Attachments:
10 11 A. Keyser Marston Associates, Inc. (KMA) on an Inclusionary Housing Fee 12 Calculation memorandum
13 H.2.d
Packet Pg. 268 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options)

ATTACHMENT A
Keyser Marston Associates, Inc. (KMA) on an Inclusionary Housing Fee Calculation memorandum
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Packet Pg. 269 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) 2040 BANCROFT WAY, SUITE 302  BERKELEY, CALIFORNIA 94704  PHONE: 415 398 3050  FAX: 415 397 5065 001-002.docx; jf
WWW.KEYSERMARSTON.COM 16034.002
ADVISORS IN:

REAL ESTATE

AFFORDABLE HOUSING

ECONOMIC DEVELOPMENT

BERKELEY
A. JERRY KEYSER
TIMOTHY C. KELLY
DEBBIE M. KERN

DAVID DOEZEMA

LOS ANGELES
KATHLEEN H. HEAD
JAMES A. RABE
GREGORY D. SOO-HOO
KEVIN E. ENGSTROM
JULIE L. ROMEY

TIM BRETZ

SAN DIEGO
PAUL C. MARRA

LINNIE GAVINO

MEMORANDUM
To: Cynthia Battenberg
Town of Moraga
From: Keyser Marston Associates, Inc.

Date: December 21, 2022
Subject: Inclusionary In-Lieu Fee Calculations
The following memorandum has been prepared for the Town of Moraga (Town) by Keyser Marston Associates, Inc. (KMA) to calculate an in-lieu fee pursuant to the Town’s proposed Affordable Housing Ordinance (AHO). Moraga Municipal Code (MMC) Section

8.180.050 D (proposed) provides for adoption of in-lieu fees for fractional inclusionary unit obligations. Projects with a fractional inclusionary unit requirement are eligible to either pay an in-lieu fee for the fractional unit or provide a whole inclusionary unit.

SUMMARY OF IN-LIEU FEE CALCULATION
In-lieu fees are calculated based on the gap between market-rate and affordable sales prices and rents pursuant to MMC 8.180.050 D. In-lieu fees are expressed per habitable square foot within the project. Applying in-lieu fees on a per square foot basis is permitted under the AHO, is a well-established approach used in many jurisdictions throughout the region and allows the amount of the fee to scale with unit size.

A. Projects from Six to Nine Units
Table 1 presents calculated in-lieu fees for projects from six to nine units in size. In-lieu fees reflect the gap between market and affordable prices and rents and the schedule of fractional inclusionary unit obligations for projects with six to nine units under MMC

8.180.040 (D), which phases in requirements for smaller projects.

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Table 1. In-Lieu Fees for Six to Nine-Unit Projects
Per Habitable Square Foot (1) in Project
For-Sale Units Rental Units
6-unit projects $13.00 /SF $8.30 /SF
7-unit projects $22.30 /SF $14.30 /SF
8-unit projects $29.30 /SF $18.80 /SF
9-unit projects $34.70 /SF $22.20 /SF
(1) Excludes garages, parking area, common areas and common amenities, and other non-livable space.

B. Fractional Inclusionary Unit In-Lieu Fees for Larger Projects.

For projects with more than ten units that choose to meet fractional unit inclusionary requirements by paying an in-lieu fee, the amount is determined based on a “gross per square foot in-lieu fee” multiplied by the share of the inclusionary unit requirement to be satisfied with in-lieu fee payment, as shown in Table 2. The gross in-lieu fee reflects the full affordability gap, assuming no inclusionary units are provided within the project, and was calculated at $39 per square foot for for-sale units and $25 per square foot for rental units. This gross amount must be reduced to reflect the share of the inclusionary requirement to be satisfied with in-lieu fee payment, as shown in Table 2.

Table 2. Fractional Unit In-Lieu Fees, Projects with More Than Ten Units ForSale
Units
$39 𝑃𝑃𝑃𝑃𝑃𝑃 𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺 𝑓𝑓𝑓𝑓𝑓𝑓 ×
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐹𝐹𝐹𝐹𝐹𝐹 𝐼𝐼 𝐼𝐼 𝐼𝐼 𝑈𝑈 𝑂𝑂𝑂𝑂 𝑂𝑂
𝑇𝑇 𝐼𝐼 𝐼𝐼 𝐼𝐼 𝑈𝑈 𝑅𝑅 𝑅𝑅
× 𝐻𝐻 𝐻𝐻 𝐻𝐻 𝐹𝐹 = 𝑇𝑇 𝐷𝐷
Rental
Units $25 𝑃𝑃𝑃𝑃𝑃𝑃 𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺 𝑓𝑓𝑓𝑓𝑓𝑓 ×
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐹𝐹𝐹𝐹𝐹𝐹 𝐼𝐼 𝐼𝐼 𝐼𝐼 𝑈𝑈 𝑂𝑂𝑂𝑂 𝑂𝑂
𝑇𝑇 𝐼𝐼 𝑈𝑈 𝑅𝑅 𝑅𝑅
× 𝐻𝐻 𝐻𝐻 𝐻𝐻 𝐹𝐹 = 𝑇𝑇 𝐷𝐷
Appendix Table 1 provides an example calculation.

C. Custom Lot Subdivisions
For custom lot subdivisions, in-lieu fees are due at Final Map, while homes are built later. In this case, the in-lieu fee must be calculated based on an assumed habitable square footage. KMA recommends use of an estimated or assumed average square footage, as described in Table 3.

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Table 3. Custom Lot Subdivisions
If the total habitable square footage in the development can reasonably be estimated at the time of Final Map, such reasonable estimate shall be used for the in-lieu fee calculation. Otherwise, the total habitable square footage shall be calculated based on the average unit size used for purposes of establishing the in-lieu fee multiplied by the number of buildable lots. Average unit sizes, based on the supporting market data used for establishing in-lieu fees, are:

For-Sale: 3,040 sq ft
Rental: 1,028 sq ft

SUPPORTING ANALYSIS
The following sections walk through the calculation of in-lieu fees.

Gross In-Lieu Fee Calculation for For-Sale Projects
The AHO specifies that the in-lieu fee for for-sale units “…should represent a reasonable portion of the gap between the Affordable Sales Price at the corresponding income level and the Market-Rate sales price of For-Sale housing….” KMA calculated this gap based on a review of market rate sales and an estimate of the affordable sales prices for comparable units. The analysis is summarized below.

To estimate the market rate sales price of a new unit in Moraga, KMA calculated the average sales price of units built since 2010 and sold since January 2019, using data from CoreLogic. There were 72 units that fit these criteria in Moraga, representing a mix of single family detached and attached or duplex units. The average number of bedrooms, unit size and sales prices are shown in Table 4.

Table 4. Average Price of Newer Units in Moraga Built Since 2010, Sold Last 4 Years (1/2019 - 11/2022)
Average Sales Price, Newer Units in Moraga $1,798,000
Average Number of Bedrooms, Newer Units in Moraga 3.96
Average Net Square Footage, Newer Units in Moraga 3,040 sq ft Source: CoreLogic
Average market rate sales prices for for-sale housing in Moraga is the first component of the for-sale affordability gap calculation.

KMA estimated the affordable sales price for a comparable unit based on AHO requirements. The pricing is set to be affordable to households earning the Moderate H.2.d
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Income Limit for Contra Costa County with 35% of income set aside for housing costs including mortgage payments, property taxes, insurance, HOA dues, and utilities. Table 5 presents the affordable sales prices. Appendix Table 4 provides the supporting calculation.

Table 5. Moderate Income Affordable Sales Price
3 Bedroom
Aff Price
4 Bedroom
Aff Price
Weighted
Average (1)
Affordable Price $571,300 $613,400 $612,000
(1) Weighted to reflect the average of 3.96 bedrooms in the market rate unit sales data summarized in Table 4.

The for-sale affordability gap is the difference between the market rate sales price (Table 4) and the weighted average affordable sales prices (Table 5). The affordability gap represents the forgone revenue to the developer from setting aside a unit as affordable.

The calculation is shown in Table 6.

Table 6. For-Sale Affordability Gap
Market Price $1,798,000
Less: Affordable Price ($612,000)
Affordability Gap $1,186,000
Using the affordability gap, KMA calculated a per-square-foot in-lieu fee. The fee is calculated based on the onsite requirement (10% of units) and the average size of the market rate units (3,040 square feet). The calculation is shown in Table 7.

Table 7. Calculation of Gross For-Sale In-Lieu Fee, Before Phase-In Affordability
Gap
Inclusionary
Percentage
Average Unit
Square Feet
Gross In-Lieu
Fee before
phase-in
Gross For-Sale In-Lieu
Fee Before Phase-In
$1,186,000 x 10% ÷ 3,040 sq ft = $39 /SF
In-lieu fees for projects from six to nine units in size presented in Table 1 are based on the gross in-lieu fee per square foot in Table 7, adjusted for the phase in of the inclusionary unit requirement pursuant to MMC 8.180.040 (D). The supporting calculation of this phase in is provided in Appendix Table 1.

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Gross In-Lieu Fee Calculation for Rental Projects
The AHO specifies that the in-lieu fee for rental units “should represent a reasonable portion of the gap between the Affordable Rent at the corresponding income level and the market-rate rent for a similar product type over the lifetime of the affordability term.” KMA calculated this gap based on a review of market rate rents and an estimate of the affordable rents for comparable units. Appendix Table 3 presents the calculations. The analysis is summarized below.

KMA reviewed current market rate rents in Moraga. Costar data indicate that nearly all Moraga apartment units were built in the 1960s and 1970s. The in-lieu fee analysis should be based on the estimated rental rates of newly built units that would be subject to the inclusionary requirement. To estimate the rent premium for new units with modern finishes and amenities, KMA compared market rents for new and old apartments in Walnut Creek, where this data is available. KMA calculated the percentage difference in rents between new and old units from the 1960s and 1970s and estimated that new units rent for approximately 50% more than the older units. KMA estimated rents for new market rate units in Moraga based on applying this 50% premium to existing rents for older units, as shown in Table 8.

Table 8. Estimated Market Rate Rents for New Units in Moraga Avg Number
of BRs
Avg
Unit SF
Avg Effective
Rent Per Month
Averages for Rental Unit in Moraga (older units) 1.83 1,028 $2,110 Estimated Rent Premium for New Construction 50%
Estimated Market Rent for New Rental Units in Moraga 1.83 1,028 $3,165 Source: CoStar
The estimated market rate rents for new apartments in Moraga presented in Table 8 is the first component of the rental affordability gap calculation.

KMA calculated the affordable rent for a comparable unit using the average number of bedrooms from the market data and the requirements of the AHO. The rent is set to be affordable to households earning the maximum income limit for Low Income households in Contra Costa County, with 30% of income set aside for housing costs including rent and utilities. The results are summarized in Table 9.

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Table 9. Affordable Monthly Rent
1 BR/
2-p HH
2 BR/
3-p HH
Weighted
Average (1)
Contra Costa County Low Income Limit, 2022 $87,700 $98,650 Affordable Housing Cost per Month $2,193 $2,466 $2,420
Less: Utilities (2) ($95) ($125) ($120)
Affordable Rent $2,098 $2,341 $2,300
(1) Weighted to reflect the average of 1.83 bedrooms in the market rate rental units. (2) Assumes gas heat, hot water and cooking, air conditioning, electricity and water.

The difference between market rate rents (Table 8) and the affordable rents (Table 9) is shown in Table 10.

Table 10. Net Difference: Market vs. Affordable Rents
Market
Rent
Affordable
Rent
Rent Difference
Per Month
Rent Difference
Per Year
Net Difference:

Market and Affordable Rents $3,165 $2,300 $865 $10,382

The rental affordability gap is calculated based on annual difference between market rate and affordable rents in Table 10, divided by a capitalization rate of 4%, to identify forgone project value associated with setting aside a unit as affordable. The cap rate is based on the average for 2022 year-to-date for the Walnut Creek submarket, according to CoStar. The calculation is shown in Table 11.

Table 11. Rental Affordability Gap (Capitalized value of rent difference) Rent Difference
Per Year
Capitalization
Rate (1)
Capitalized Value
of Rent Difference
Affordability Gap $10,382 ÷ 4.00% = $260,000
(1) Costar Walnut Creek area submarket cap rate for 2022YTD.

Using the affordability gap, KMA calculated the gross in-lieu fee. The fee is calculated based on the affordability gap, the onsite requirement (10% of units), and the average size of the market rate units (1,028 square feet). The calculation is shown in Table 12.

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Table 12. Calculation of Gross Rental In-Lieu Fee, Before Phase-In Affordability
Gap
Inclusionary
Percentage
Average Unit
Square Feet
Gross In-Lieu
Fee Before
Phase-In
Gross Rental In-Lieu
Fee Before Phase-In $260,000 x 10% ÷ 1,028 sq ft = $25.00 /SF In-lieu fees for projects from six to nine units in size are based on the gross in-lieu fee per square foot in Table 12 plus an adjustment for the phase in of the inclusionary unit requirement pursuant to MMC 8.180.040 (D). The supporting calculation is provided in Appendix Table 1.

See also, Appendix Tables 1 through 4, attached, for supporting calculations.

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Packet Pg. 276 Attachment: Attachment D - Moraga Inclusionary Zoning In-Lieu Fee (3114 : Inclusionary Housing Ordinance Options) Appendix Table 1
In-Lieu Fee Calculations
In Lieu Fee Analysis
Town of Moraga, CA
A. B. C. D. E.

Project Size Rental For-Sale
per Ordinance = 10% x No. units = A. / B.

Gross In-Lieu Fee Before Phase-In $25 /SF $39 /SF
Appendix Table 3ppendix Table 2
=C x gross fee =C x gross fee
6-unit projects 0.2 0.6 33% $8.30 /SF $13.00 /SF
7-unit projects 0.4 0.7 57% $14.30 /SF $22.30 /SF
8-unit projects 0.6 0.8 75% $18.80 /SF $29.30 /SF
9-unit projects 0.8 0.9 89% $22.20 /SF $34.70 /SF
(1) Excludes garages, parking area, common areas and common amenities, and other non-livable space.

Example Fractional Unit In-Lieu Fee Calculation (For Sale Project) 1) Habitable Square Footage in Project 92,400
2) Total Units in Project 42
3) Inclusionary Units Required = 10% X Total Units 4.20 4) Whole Inclusionary Units Due 4.00
5) Fractional Inclusionary Units Due 0.20
6) Gross In-Lieu Fee Before Phase In $39 /SF Appendix Table 2 7) Fractional Unit In-Lieu Fee $171,600
B. Fractional Unit In-Lieu Fees for Projects of Eleven or More Units Formula for Fractional Unit In-lieu Fees
= Fractional Units Owed / Total Inclusionary Unit Requirement x Gross Per Square Foot In-Lieu Fee x Total Habitable Square Footage in the Project.
= 0.2 fractional units /

4.2 inclusionary units x
$39/SF x 92,400 SF
In-Lieu Fee
Per Habitable
Square Foot (1)
A. In-Lieu Fees for Six to Nine-Unit Projects
Phase-in of
Inclusionary
Requirement
per Ordinance

8.180.040 (D)
Inclusionary
Units With Full
10%
Requirement
In-Lieu Fee
Phase In
Percentage
(project either pays this amount or
rounds up to five whole inclusionary
units)
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Prepared by: Keyser Marston Associates, Inc.

Filename: \\SF-FS2\wp\16\16034\002\In-Lieu Fee Analysis Town of Moraga 12-21-22.xlsx; Summary