This might be a cop out answer, but it really depends on the strength of the rest of your profile. 1 out of 10 Haas students had below a 3.3 (that’s about 24 enrolled students per class). Why should you be one of them? If you have a compelling story about your GPA and undergrad experience (did you work during school? Play a D1 sport? Were you the first-generation in your family to attend college?) I think you should apply, especially if you want to end up in the Bay Area. Your high GMAT score helps, as does having a good alternate transcript. Your work experience, extracurriculars, essays, and recommendations will have to be strong, but I think it’s worth it if you think you’d be a good fit for the school.
Keep in mind though that in-state tuition at Haas is an almost insignificant discount from full tuition: this year’s total cost of attendance is $80,838 for out-of-state and $78,291 for in-state. Haas does this to be competitive with the top private MBA programs (and I suspect to keep it sheltered from exposure to California’s budget issues) -- it seems like the school runs itself more like a private institution than a public one.
On that note, I don’t think California residents are given any specific favor, but I could be wrong. Roughly a quarter of full-time MBA students hail from California (18% from the bay area alone) according to this student survey:
https://haas.berkeley.edu/MBA/studentlife/survey.html. Anecdotally, that home-region percentage sounds similar to regional admit rates at other top schools, but I don’t have any data to back that up.
Good luck!