Clayton City Council
April 4, 2023

_____________________________________________________________________________________________ Agenda April 4, 2023 Page 1
AGENDA

REGULAR MEETING
* * *

CLAYTON CITY COUNCIL
* * *
TUESDAY, April 4, 2023
6:30 P.M.
*** NOTICE ***
Members of the public will be able to participate either in-person at Hoyer Hall, Clayton Community Library
6125 Clayton Road, Clayton, CA 94517
or
remotely via Zoom.

Mayor: Jeff Wan
Vice Mayor: Jim Diaz
Council Members
Peter Cloven
Holly Tillman
Kim Trupiano
• A complete packet of information containing staff reports and exhibits related to each public item is available for public review in City Hall located at 6000 Heritage Trail and on the City’s website at www.claytonca.gov
• Agendas are posted at: 1) City Hall, 6000 Heritage Trail; 2) Library, 6125 Clayton Road; 3) Ohm’s Bulletin Board, 1028 Diablo Street, Clayton; and 4) City Website at www.claytonca.gov • Any writings or documents provided to a majority of the City Council after distribution of the Agenda Packet and regarding any public item on this Agenda will be made available for public inspection in the City Clerk’s office located at 6000 Heritage Trail during normal business hours and is available for review on the City’s website at www.claytonca.gov • If you have a physical impairment that requires special accommodation to participate, please call the City Clerk’s office at least 72 hours in advance of the meeting at (925) 673-7300. _____________________________________________________________________________________________ Agenda April 4, 2023 Page 2
Instructions for Virtual City Council Meeting – April 4 Tonight’s meeting will be available to the public both in-person and remotely via Zoom. As a courtesy, and technology permitting, members of the public may continue to provide live remote oral comment via the Zoom video conferencing platform. However, the City cannot guarantee that the public’s access to teleconferencing technology will be uninterrupted, and technical difficulties may occur from time to time.

To follow or participate in the meeting:

1. Videoconference: to follow the meeting on-line, click here to register:
https://us02web.zoom.us/webinar/register/WN_06q0GcosRnmvy4dNOutGlw After clicking on the URL, please take a few seconds to submit your first and last name, and e-mail address then click “Register”, which will approve your registration and a new URL to join the meeting will appear.

Phone-in: Once registered, you will receive an e-mail with instructions to join the meeting telephonically, and then dial Telephone: 877 853 5257 (Toll Free)

2. using the Webinar ID and Password found in the e-mail.

E-mail Public Comments: If preferred, please e-mail public comments to the City Clerk, Ms.

Calderon at [email protected] by 5 PM on the day of the City Council meeting. All E-mail Public Comments will be forwarded to the entire City Council.

For those who choose to attend the meeting via videoconferencing or telephone shall have 3 minutes for public comments.

Location:

Videoconferencing Meeting (this meeting via teleconferencing is open to the public) To join this virtual meeting on-line click here:
https://us02web.zoom.us/webinar/register/WN_06q0GcosRnmvy4dNOutGlw To join on telephone, you must register in the URL above, which sends an e-mail to your inbox, and then dial (877) 853-5257 using the Webinar ID and Password found in the e-mail. _____________________________________________________________________________________________ Agenda April 4, 2023 Page 3
* CITY COUNCIL *
April 4, 2023

1. CALL TO ORDER AND ROLL CALL – Mayor Wan.

2. CLOSED SESSION
(a) Public Employment (Gov. Code 54957)
Title: City Manager
Conference with Labor Negotiators (Gov. Code 54957.6)
Agency designated representatives: Mayor Wan and Councilmember Tillman Unrepresented employee: City Manager
- Short Recess -
* * * * *
7:00 P.M.

3. RECALL TO ORDER AND ROLL CALL – Mayor Wan.

4. PLEDGE OF ALLEGIANCE – led by Mayor Wan.

5. PUBLIC COMMENT ON NON - AGENDA ITEMS
Members of the public may address the City Council on items within the Council’s jurisdiction (which are not on the agenda) at this time. To assure an orderly meeting and an equal opportunity for everyone, each speaker is limited to 3 minutes, enforced at the Mayor’s discretion. In accordance with State Law, no action may take place on any item not appearing on the posted agenda. The Council may respond to statements made or questions asked or may at its discretion request Staff to report back at a future meeting concerning the matter.

Public comment and input on Public Hearing, Action Items and other Agenda Items will be allowed when each item is considered by the City Council.

6. CONSENT CALENDAR
Consent Calendar items are typically routine in nature and are considered for approval by one single motion of the City Council. Members of the Council, Audience, or Staff wishing an item removed from the Consent Calendar for purpose of public comment, question, discussion or alternative action may request so through the Mayor.
(a) Approve the minutes of the City Council’s special meeting of March 13, 2023 and City Council’s regular meeting of March 28, 2023. (City Clerk) (View here) _____________________________________________________________________________________________ Agenda April 4, 2023 Page 4
(b) Approve the Financial Demands and Obligations of the City. (Finance) (View here) (c) Adoption of an Ordinance to Amend Clayton Municipal Code Chapter 17.47, Sections 17.04.083 and 17.44.030, and Schedule 17.37.030A Pertaining to Accessory Dwelling Units and Junior Accessory Dwelling Units (ZOA-02-2022), and Finding that Such Amendment is Exempt from CEQA Pursuant to Public Resources Code Section 21080.17. (Community Development Director) (View here)
(d) Adoption of a Revised Investment Policy. (Finance Director) (View here) (e) National Opioid Litigation and Authorization to Participate in Additional Settlement Agreements Arising from the Litigation. (City Attorney) (View here)

7. RECOGNITIONS AND PRESENTATIONS
(a) Information Only – No Action Requested.
• Autism Acceptance Month
• Arab-American Heritage Month
• Earth Day (April 22)
• Armenian Genocide Remembrance Day (April 24)

8. REPORTS
(a) City Manager/Staff

9. PUBLIC HEARINGS
(a) Adopt a Resolution Authorizing the City to Amend the Installation Agreement with Climatec to Initiate Phase 2 of the Comprehensive Infrastructure Renewal and General Fund Savings Program and Find the Amendment to be Exempt from the California Environmental Quality Act. (Interim City Manager) (View here)

10. ACTION ITEMS
(a) The Fiscal Year 2022-23 Mid-Year Budget Update. (Finance Director) (View here)
_____________________________________________________________________________________________ Agenda April 4, 2023 Page 5
(b) Approve Funding Appropriation of American Rescue Plan Act (ARPA) Funds for Energy Cost Savings, Efficiency Measures and Asset Replacement. (Finance Director) (View here)
(c) Annual Consideration of Canceling Any Regular City Council Meetings During the Summer of 2023. (Interim City Manager) (View here)

11. COUNCIL ITEMS – limited to Council requests and directives for future meetings.

12. COUNCIL REPORTS
(a) City Council - Reports from Council liaisons to Regional Committees, Commissions and Boards.

13. ADJOURNMENT
The next regularly scheduled meeting of the City Council will be April 18, 2023. # # # #
Agenda Item: 6(a)
____________________________________________________________________________ City Council Minutes March 13, 2023 Page 1

MINUTES
OF THE

SPECIAL MEETING

CLAYTON CITY COUNCIL
MONDAY, March 13, 2023

1. CALL TO ORDER THE CITY COUNCIL – The meeting was called to order at 3:32 p.m. by Mayor Wan held via a hybrid meeting format live in-person and Zoom videoconference and broadcast from Hoyer Hall, Clayton Community Library, 6125 Clayton Road, Clayton, California. Councilmembers present: Mayor Wan, Vice Mayor Diaz, and Councilmembers Cloven Tillman, and Trupiano. Councilmembers absent: None. Staff present: Interim City Manager Ron Bernal, Strategic Planning, Economic Dev. & Municipal Management Rick Otto from MRG Consultants, City Attorney Mala Subramanian, Maintenance Supervisor Jim Warburton, Police Chief Rich McEachin, Community Development Director Dana Ayers, Finance Director Angeline Loeffler, Finance Consultant Nitish Sharma, City Engineer Larry Thesis, and City Clerk Janet Calderon.

Report out from Closed Session from City Council special meeting of March 11, 2023:

Mayor Wan reported “No Reportable Action”.

2. PUBLIC COMMENT ON NON - AGENDA ITEMS
James Killoran expressed concern regarding permit fee increases and suggested a limited police fund parcel tax.

Scott Denslow would not support new taxes.

Terri Denslow requested a change of the negotiators of the Clayton Business and Community Association contract be the Mayor and City Manager, as they are not Clayton Business and Community Association members.

Keith Haydon requested the negotiators of the Clayton Business and Community Association contact the original negotiators for input on the original fee structure.

Mayor Wan closed public comment.

3. CONSENT CALENDAR
It was moved by Councilmember Cloven, seconded by Councilmember Tillman, to approve the Consent Calendar item 4(a), as submitted. (Passed 5-0). (a) Adopted Resolution No. 13-2023 Extending the Proclamation of the Director of Emergency Services of the City of Clayton Declaring a Local Emergency Due to Adverse Weather Conditions Beginning December 31, 2022. (Interim City Manager)

4. ACTION ITEM
____________________________________________________________________________ City Council Minutes March 13, 2023 Page 2
(a) Review, discuss and establish Council - Manager Goals and Objectives for Fiscal Year 2023/24. (Interim City Manager)
Interim City Manager Ron Bernal presented the report and introduced Rick Otto, MRG Consulting to present its findings on the Organizational Assessment.

Rick Otto, MRG Consulting presented a PowerPoint presentation with an overview of the findings.

Following questions and comments by the City Council, Mayor Wan opened the public comment.

James Killoran suggested a $200.00 parcel tax to add an additional three employees to staff.

Terri Denslow was not surprised by the results of the organizational assessment and requested the City Council take this seriously.

Scott Denslow suggested everyone listen to the results, analyze the report and move forward.

Keith Haydon suggested the results by shared with the community.

Frank Gavidia requested the City Council find a way to work together as the city is currently divided.

Ed Miller expressed support of the city joining Recycle Smart JPA and regionalism of working with other municipalities.

Mayor Wan closed public comment.

The City Council provided the following objectives:
• Revenue Generating Ideas
• Updated Fee Schedule
• Apex IT Update
• Address Financial Challenges
• Landscape Maintenance District Vote
• Address Finances to Fund Staff
• Financial Stability
• Staff Resources
• Geological Hazard Abatement District Resources
• Overview of On-Call Contracts
• Council Relationship
• Initiative to Fund Public Safety
• Cannabis Initiative
• Update General Plan
Interim City Manager Ron Bernal suggested scheduling another meeting to discuss next steps on City Council Goals.

Agenda Item: 6(a)
____________________________________________________________________________ City Council Minutes March 13, 2023 Page 3

5. ADJOURNMENT– on call by Mayor Wan, the City Council adjourned its meeting at 5:51 p.m.
# # # # #
Respectfully submitted,
________________________________
Janet Calderon, City Clerk

APPROVED BY THE CLAYTON CITY COUNCIL
______________________________________
Jeff Wan, Mayor
# # # # #
____________________________________________________________________________ City Council Minutes March 21, 2023 Page 1

MINUTES
OF THE

REGULAR MEETING

CLAYTON CITY COUNCIL
TUESDAY, March 21, 2023

1. CALL TO ORDER THE CITY COUNCIL – The meeting was called to order at 7:02 p.m. by Mayor Wan held via a hybrid meeting format live in-person and Zoom videoconference and broadcast from Hoyer Hall, Clayton Community Library, 6125 Clayton Road, Clayton, California. Councilmembers present: Mayor Wan, Vice Mayor Diaz, and Councilmembers Cloven and Trupiano. Councilmembers absent: None. Staff present: Interim City Manager Ron Bernal, City Attorney Mala Subramanian, Community Development Director Dana Ayers, City Engineer Larry Theis, and City Clerk Janet Calderon.

2. PLEDGE OF ALLEGIANCE – led by Mayor Wan.

3. PUBLIC COMMENT ON NON - AGENDA ITEMS
James Killoran provided feedback on the suggestion of a potential Cannabis Dispensary in Clayton and requested the City Council disclose any Conflicts of Interest regarding this item.

Gary Barton expressed his disappointment regarding the Clayton Business and Community Association master agreement
Carl Wolfe assured the Art and Wine Festival is still taking place on April 29 and April 30 in downtown Clayton and will be negotiating a fee structure with the City in the future.

Rosy Straka expressed her dissatisfaction with the City not caring about its citizens concerns.

Frank Gavidia expressed his concern of accusations made about former Councilmember Joe Medrano.

Scott Denslow provided a brief summary of the organizational assessment, and highlighted City accomplishments in 2021-2022.

Terri Denslow noted a conflict of interest exists for City Council, suggested terminating all master agreements, and provided a brief summary of the organizational assessment.

Roy Correa indicated normal business practice is to negotiate contracts as needed.

Lisa Browlett submitted comments to the City Clerk to be entered into the record. “Based on MRG Consultants’ analysis of the City of Clayton’s staffing, compared to neighboring cities, it clearly shows Clayton is understaffed. My question is, did the MRG Consultants also provide an analysis on whether the understaffed City of Clayton employees are getting their lunch/ meal breaks?”
Mayor Wan closed public comment.
____________________________________________________________________________ City Council Minutes March 21, 2023 Page 2

4. CONSENT CALENDAR
Mayor Wan pulled item 4(d) for separate discussion.

Vice Mayor Diaz pulled item 4(f) for separate discussion.

Mayor Wan opened public comment.

Glenn Miller expressed his concerns regarding item 4(d) in watching the fund for this item, maintenance is not being performed, however the fund balance is zero.

Mayor Wan closed public comment.

It was moved by Councilmember Cloven, seconded by Councilmember Trupiano, to approve the Consent Calendar items 4(a) – 4(c) and 4(e), as submitted. (Passed 5-0).
(a) Approved the minutes of the City Council’s regular meeting of March 7, 2023. (City Clerk)
(b) Approved the Financial Demands and Obligations of the City. (Finance) (c) Adopted Resolution No. 14-2023 Acceptance of the 2022 General Plan Implementation and Housing Element Annual Progress Report. (Community Development Director) (e) Adopted Resolution No. 15-2023 of the City Council of the City of Clayton Amending a Professional Services Agreement with GovInvest for Financial Consulting Services in the Amount of $49,900 for a Total Not-To-Exceed Amount of $115,775. (Finance Director)
Item 4(d) pulled for a separate discussion
(d) Adopted Resolution No. 16-2023 Establishing 2023/2024 Equivalent Ruoff Unit (ERU) Assessment Rate for Federal and State Mandated National Pollution Discharge Elimination System (NPDES) Program (Storm Water Pollution Prevention). (City Engineer)
Mayor Wan requested City Engineer Larry Theis to provide a brief presentation on this item.

5. RECOGNITIONS AND PRESENTATIONS
(a) Certificates of Recognition to public school students for exemplifying the “Do the Right Thing” character trait of “Self-Discipline” during the months of January and February 2023. (Councilmember Cloven)
Councilmember Cloven and Mt. Diablo Elementary School Principal Katie Sanchez presented certificates to Luca Carone and Maliyah Hill. ____________________________________________________________________________ City Council Minutes March 21, 2023 Page 3
Councilmember Cloven and Diablo View Middle School Principal Peter Fong presented certificates to Ethan Ruff and Kenley Kick.

Item 4(f) pulled for a separate discussion
(f) Request to purchase 2016 Zero electric police motorcycle. (Police Chief) Vice Mayor Diaz requested a future item providing a traffic enforcement plan.

It was moved by Councilmember Cloven, seconded by Councilmember Trupiano, to approve the Consent Calendar items 4(d) and 4(f), as submitted. (Passed 5-0).

6. REPORTS
(a) Interim City Manager Ron Bernal indicated “No Report”.

7. PUBLIC HEARINGS
(a) Adopt a Resolution Approving Endeavor Hall Clayton Non-Profit Rental Fees. (Interim City Manager)
Interim City Manager Ron Bernal presented the report.

Following questions and comments by the City Council, Mayor Wan opened the public comment.

Janet Easton expressed concern on additional work for staff for Clayton non-profit rentals, insurance requirements and suggested the Kitchen could potential be a separate rental. She also inquired on who receives the fees for rental of the Mount Diablo Elementary School Field and Parking Lot.

Glenn Miller would like to continue Clayton resident and non-Clayton resident rates.

Pat Middendorf clarified Endeavor Hall rental rates does not include set-up or cleanup, and non-profits do not provide a deposit for Endeavor Hall rentals Carl Wolfe is hopeful the City Council will vote in favor of this item.

Mayor Wan closed public comment.

It was moved by Mayor Wan, seconded by Councilmember Tillman, to Adopt Resolution No. 17-2023 Amending Endeavor Hall Non-Profit Rental Fees and Updating the City Master Fee Schedule for City User Benefit, Regulatory and Rental Fees, as amended. (Passed; 5-0 No)
(b) Introduce and Waive First Reading of an Ordinance to Amend Clayton Municipal Code Chapter 17.47, Sections 17.04.083 and 17.44.030, and Schedule ____________________________________________________________________________ City Council Minutes March 21, 2023 Page 4

17.37.030A Pertaining to Accessory Dwelling Units and Junior Accessory Dwelling Units (ZOA-02-2022), and Finding that Such Amendment is Exempt from CEQA Pursuant to Public Resources Code Section 21080.17.
(Community Development Director)
Community Development Director Dana Ayers presented the report.

Following questions by the City Council, Mayor Wan opened the public comment; no comments were offered.

It was moved by Councilmember Cloven, seconded by Mayor Wan, to Waive First Reading and Introduce an Ordinance Amending Clayton Municipal Code Chapter 17.47, Sections 17.04.083 and 17.44.030, and Schedule

17.37.030A Pertaining to Accessory Dwelling Units and Junior Accessory Dwelling Units (ZOA-02-2022), and Finding that Such Amendment is Exempt from CEQA Pursuant to Public Resources Code Section 21080.17. (Passed; 5-0)

8. ACTION ITEMS
(a) Adopt a Resolution Authorizing the City to Apply for Energy Efficiency Loan from the California Energy Commission to Implement Energy Efficiency Measures, if Approved and Finding that the Activities funded by the Loan are Categorically Exempt from CEQA pursuant to Class 1 (14 CCR § 15301) and Class 3 (14 CCR §15303) Categorical Exemptions of the State CEQA Guidelines. (Interim City Manager) Interim City Manager Ron Bernal presented the report.

Following questions and comments by the City Council, Mayor Wan opened the public comment.

Mayor Wan closed public comment.

It was moved by Mayor Wan, seconded by Councilmember Cloven, to Adopt Resolution No. 18-2023 Authorizing the City to Apply for Energy Efficiency Loan from California Energy Commission to Implement Energy Efficiency Measures, if Approved. (Passed; 5-0)

9. COUNCIL ITEMS
Councilmember Trupiano requested a future agenda item to include a policy on posting community events on the city’s website and requested the Mount Diablo Interpretive Association to provide the City Council a presentation at its April 18 meeting.

Vice Mayor Diaz requested a future agenda item to include establishment of an ad-hoc committee for the purpose of Public Safety Services District funding source for the Police Department.

Councilmember Cloven requested a future agenda item to include the addition of a future item to the City Council Agenda discussed in public prior to being placed on the agenda. ____________________________________________________________________________ City Council Minutes March 21, 2023 Page 5
Councilmember Tillman requested a future agenda item to include consideration of a play structure at Stranahan park and consideration of use fees for other entities such as sports teams.

9. COUNCIL REPORTS
(a) City Council - Reports from Council liaisons to Regional Committees, Commissions and Boards.

Councilmember Cloven attended the Transportation Partnership and Cooperation for Central Contra Costa (TRANSPAC) meeting, spoke with constituents, and announced the upcoming Clayton Cleans Up event taking place April 22.

Councilmember Tillman attended the Network of Care Crab Feed, attended the Clayton City Council Goal Setting session, was a guest speaker at the Clayton Valley Woman’s Club, participated in the City Manager Interviews, and attended the Cal Cities Community Services Policy Committee meeting.

Councilmember Trupiano attended the Transportation Partnership and Cooperation for Central Contra Costa (TRANSPAC) meeting, attended the Energy Services and infrastructure renewal ad-hoc committee meeting, attended the Clayton City Council Special meeting of March 11, attended the Clayton City Council Goal Setting session, and attended the Clayton Community Library Foundation meeting.

Vice Mayor Diaz attended the Clayton Historical Society Bob Hoyer Birthday celebration, attended the Morgan Territory Association meeting, attended the Clayton City Council Special meeting on March 11, attended the Clayton City Council Goal Setting session, attended the Clayton Business and Community Association ad-hoc committee meeting, attended the County Connection meeting, and attended the Clayton City Council special meeting March 21.

Mayor Wan attended several Clayton City Council meetings, attended the Clayton Business and Community ad-hoc committee meeting, and a meeting with Climatec.

11. RECESS THE CITY COUNCIL MEETING – Mayor Wan
(until after the conclusion of the Oakhurst Geological Hazard Abatement District meeting)
(9:14 pm) Mayor Wan recessed the City Council meeting.

12. RECONVENE THE CITY COUNCIL MEETING – Mayor Wan
(11:25 pm) Mayor Wan reconvened the City Council meeting.

13. CLOSED SESSION
(11:26 pm) Mayor Wan announced City Council Closed Session. (a) Conference with Real Property Negotiators
(Gov. Code section 54956.8)
____________________________________________________________________________ City Council Minutes March 21, 2023 Page 6
Property: 278 Stranahan Circle, Clayton, Ca 94517
Agency Negotiators: Ron Bernal, Interim City Manager and Dana Ayers, Community Development Director
Negotiating Party: Bonny Slatkin
Under Negotiation: Price and terms of payment
Report out from Closed Session:
(11:41 pm) Mayor Wan reported “No Reportable Action”.

14. ADJOURNMENT - on call by Mayor Wan, the City Council adjourned its meeting at 11:41 p.m.
# # # # #
Respectfully submitted,
________________________________
Janet Calderon, City Clerk

APPROVED BY THE CLAYTON CITY COUNCIL
______________________________________
Jeff Wan, Mayor
Agenda Item: 6(b)

STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: JENNIFER GIANTVALLEY, ACCOUNTING TECHNICIAN

ANGELINE LOEFFLER, FINANCE DIRECTOR
DATE: 4/4/23
SUBJECT: FINANCIAL DEMANDS AND OBLIGATIONS OF THE CITY
RECOMMENDATION:

It is recommended the City Council, by minute action, approve the financial demands and obligations of the City for the purchase of services and goods in the ordinary course of operations.

Attachments:

1. Obligation report for 4/4/23 (2 pages)

2. Payroll Reconciliation Summary report PPE 3/19/23 (2 pages) Attached Report Purpose Amount
Obligations Accounts Payable $ 156,173.55
Payroll Reconciliation Summary Payroll, Taxes $ 96,535.87 Total Required $ 252,709.42
City of Clayton
Obligations for 4/4/23
Vendor name Invoice date Invoice number Invoice description Amount Payment method American Fidelity Assurance Company 03/31/2023 D565099 Supplemental Insurance March 2023 $566.84 Bank draft AT&T 03/07/2023 4244457704 Hoyer Hall Internet $187.60 Check AT&T (CalNet3) 03/22/2023 19697383 Phones 2/22/23-3/21/23 $1,240.16 Check Samuel Awad 03/24/2023 CCP CCP partial refund $86.00 Check Axon Enterprise, Inc 03/15/2023 INUS144385 Basic to Pro Conversion $312.52 Check CalPERS Health 03/14/2023 1715835 Medical April 2023 $33,181.26 Bank draft CalPERS Retirement 03/19/2023 031923 Retirement PPE 3/19/23 $18,414.91 Bank draft CCWD 03/02/2023 030223 Water 1/7/23-3/2/23 $17,089.58 Check City of Antioch 03/10/2023 AR168610 PD Vehicle repairs March 2023 $1,927.26 Check Comcast Business 03/05/2023 030523 Internet 3/10/23-4/9/23 $237.52 Check Contra Costa County - Office of the Sheriff 03/08/2023 CLPD-422 Blood withdrawals Q2 FY23 $115.50 Check Contra Costa County - Office of the Sheriff 03/02/2023 Training Training - Radar/Lidar $319.00 Check Contra Costa Topsoil 01/10/2023 164714 Sand $815.63 Check Contra Costa Topsoil 01/09/2023 164725 Sand $815.63 Check CR Fireline, Inc 01/05/2023 122909 Emergency call - Fire alarm panel $575.00 Check Globalstar LLC 03/16/2023 47708895 Sat phone 3/16/23-4/15/23 $136.95 Check GovInvest, Inc 03/07/2023 2023-4404 Finance Consulting hours January & February 2023 $25,200.00 Check Hammons Supply Company 03/16/2023 122394 Janitorial supplies March 2023 $146.92 Check Hammons Supply Company 03/16/2023 122393 Janitorial supplies March 2023 $453.73 Check J&R Floor Services 04/01/2023 Three2023 Janitorial svcs March 2023 $4,988.00 Check J&R Floor Services 02/10/2023 Miwok/Ahwanee Repair sidewalks $2,250.00 Check JJR Enterprises for Caltronics Business Systems 03/17/2023 3727549 Copier usage 2/18/23-3/17/23 $175.94 Check LarryLogic Productions 03/22/2023 2100 City council meeting production 3/21/23 $680.00 Check LSA Associates Inc 03/10/2023 187307 Consultant svcs February 2023 $606.25 Check LSA Associates Inc 01/17/2023 186501 Consultant svcs December 2022 $6,291.25 Check Mission Square Retirement 03/19/2023 031923 457 Plan contributions PPE 3/19/23 $225.00 Bank draft Moore Iacofano Golstman, Inc 03/23/2023 80026 Housing Element svcs February 2023 $993.75 Check MPA 03/17/2023 INV003081 EAP Q3 FY2023 $303.42 Check
MPA 03/14/2023 INV003040 Unmet Liability Deductible December 2022 $5,000.00 Check Nationwide 03/19/2023 031923 457 Plan contribution PPE 3/19/23 $750.00 Bank draft NBS Govt. Finance Group 03/22/2023 202303-1610 Delinquency mgmt $188.60 Check NBS Govt. Finance Group 03/20/2023 202303-1415 CFD Admin Q4 FY 23 $5,294.44 Check Nor Cal EVI 03/23/2023 2016Zero 2016 Zero Motorcycle $7,500.00 Check Office of the Sheriff - Field Operations 03/15/2023 23-19 Rendition, Kentucky - 23-90075 $485.00 Check Pacific Telemanagement Svc 03/23/2023 2103921 Courtyard pay phone April 2023 $70.00 Check PG&E 03/23/2023 2572177359-3 032323 Energy (Gas) 2/21/23-3/21/23 $419.39 Check Pond M Solutions 03/01/2023 7377 Fountain maintenance March 2023 $650.00 Check Precision Civil Engineering (PCE) 03/15/2023 27875 21-359 Pre-approved ADU Plans $7,393.75 Check Precision Civil Engineering (PCE) 03/15/2023 27867 21-359 ADU Ordinance $237.50 Check Professional Convergence Solutions, Inc 03/20/2023 PCS0320232 Fix time on phones to Daylight Savings Time/Clear voicemail $120.00 Check RoadSafe Traffic Systems, Inc 03/14/2023 168081 Sandbags $1,141.40 Check RoadSafe Traffic Systems, Inc 03/10/2023 167985 Barricades and sandbags $397.59 Check Stericycle, Inc 03/18/2023 8003559519 Deliver SIT container console $88.98 Check Swenson's Mobile Fleet Repair 03/15/2023 I006245 PW vehicle repair 2007 F450 $2,845.68 Check The Pioneer 03/23/2023 2021489 Concerts in The Grove flyers 2023 $480.00 Check Brittney Torres 03/24/2023 CCP Partial refund CCP rental $120.00 Check Ushma Vora 03/24/2023 CCP Partial refund CCP rental $54.00 Check City of Clayton
Obligations for 4/4/23
Waraner Brothers Tree Service 03/24/2023 16355 Tree work Mitchell Canyon $1,800.00 Check Alexis White 03/13/2023 EH Partial refund of fees and deposit refund EH $932.00 Check Workers.com 03/24/2023 135781 Seasonal workers week end 3/19/23 $1,869.60 Check $156,173.55
Payroll Totals
Payroll Checks Check Type Count Net Check Dir Dep Amount Net Amount Regular 27 0.00 75,197.28 75,197.28
Totals 27 0.00 75,197.28 75,197.28 ĺ 75,197.28
Payroll Checks Check Type Agency Type Count Net Check Dir Dep Amount Net Amount Agency EFSDU 1 0.00 358.15 358.15
Agency Regular 1 0.00 663.50 663.50
Totals 2 0.00 1,021.65 1,021.65 ĺ 1,021.65
Total Net Payroll Liability 0.00 76,218.93 76,218.93 ĺ 76,218.93 Tax Liability
CA and Related Taxes Tax Id Rate Frequency Wage Cap Wages EE Amount ER Amount CA SDI - Employee EXEMPT Semi-Weekly 103,919.41 103,919.41 California SITW Semi-Weekly 102,944.41 102,944.41 4,809.51 Totals 4,809.51 0.00 ĺ 4,809.51
CASUI and Related Taxes Tax Id Rate Frequency Wage Cap Wages EE Amount ER Amount CA Edu & Training 0.001000 Quarterly 103,919.41 3,696.77 3.70 California SUI 0.020000 Quarterly 103,919.41 3,696.77 73.94 Totals 0.00 77.64 ĺ 77.64
FITW and Related Taxes Tax Id Rate Frequency Wage Cap Wages EE Amount ER Amount Federal Income Tax Semi-Weekly 102,944.41 102,944.41 12,416.12 Medicare Semi-Weekly 103,919.41 103,919.41 1,506.84
Medicare - Employer Semi-Weekly 103,919.41 103,919.41 1,506.83 Totals 13,922.96 1,506.83 ĺ 15,429.79
Total Tax Liability 18,732.47 1,584.47 ĺ 20,316.94
Transfers
Type Date Source Account Amount
Dir Dep 3/23/2023 75,197.28
Tax 3/23/2023 20,316.94
Trust Agency 3/23/2023 1,021.65
Totals Transfers 96,535.87 ĺ 96,535.87
Total Payroll Liability 96,535.87 ĺ 96,535.87
Paylocity Corporation
(888) 873-8205
Run on 3/20/2023 at 6:38 PM
User: JGiantvalley
Payroll Summary
City of Clayton

Check Date: 03/24/2023
Pay Period: 03/06/2023 to 03/19/2023
Process: 2023032401
Tax Deposits
Required Tax Deposits Tax Due On Amount
( Deposit made by Service Bureau ) California SITW 3/29/2023 4,809.51 ( Deposit made by Service Bureau ) Federal Income Tax 3/29/2023 15,429.79 ( Deposit made by Service Bureau ) California SUI 5/1/2023 77.64 Total Tax Deposits 20,316.94
Paylocity Corporation
(888) 873-8205
Run on 3/20/2023 at 6:38 PM
User: JGiantvalley
Payroll Summary
City of Clayton

Check Date: 03/24/2023
Pay Period: 03/06/2023 to 03/19/2023
Process: 2023032401
Agenda Item: 6(c)
1 AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: Dana Ayers, AICP, Community Development Director
DATE: April 4, 2023
SUBJECT: Adoption of an Ordinance to Amend Clayton Municipal Code Chapter

17.47, Sections 17.04.083 and 17.44.030, and Schedule 17.37.030A Pertaining to Accessory Dwelling Units and Junior Accessory Dwelling Units (ZOA-02-2022), and Finding that Such Amendment is Exempt from CEQA Pursuant to Public Resources Code Section 21080.17. ___________________________________________________________________________

RECOMMENDATION
Staff recommends that the City Council adopt the attached Ordinance amending Clayton Municipal Code (CMC) chapter 17.47 to comply with state law, and making other revisions to CMC Title 17 as necessary to ensure internal consistency of the municipal code in light of the amendments to CMC chapter 17.47.

BACKGROUND
On March 21, 2023, the City Council conducted a public hearing on a proposed amendment to Clayton Municipal Code pertaining to accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). The ordinance was drafted to incorporate the required provisions of state law, including establishment of a ministerial (i.e., without discretionary review or a hearing) process for permitting of JADUs and certain ADUs. Following the public hearing, the Council voted 5 to 0 to introduce and waive further reading of the ordinance as drafted.

DISCUSSION
After introducing an ordinance, the City Council must approve the action by adopting the ordinance by a majority vote at the next meeting. The ordinance becomes effective 30 days after the date of its adoption.
2 FISCAL IMPACT
Adoption of the Ordinance amending the CMC would not have direct fiscal impacts to the City.

Property owners intending to construct an ADU and/or JADU on their property would pay permit fees to cover staff costs for review of plans and permitting for their projects.

ATTACHMENT
Ordinance

ORDINANCE NO. -2023
AN ORDINANCE AMENDING CLAYTON MUNICIPAL CODE CHAPTER 17.47, SECTIONS 17.04.083 AND 17.44.030, AND SCHEDULE 17.37.030A PERTAINING TO ACCESSORY DWELLING UNITS (ZOA-02-2022),

AND FINDING THAT SUCH AMENDMENTS ARE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17

THE CITY COUNCIL
City of Clayton, California
The City Council of the City of Clayton DOES ORDAIN as follows:

Section 1. Recitals
A. California state law governing construction of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) is contained in Government Code section 65852.2 and Government Code section 65852.22, which were most recently amended on September 28, 2022, by Senate Bill 897 and Assembly Bill 2221.

B. Clayton Municipal Code (CMC) chapter 17.47, “Second Dwelling Units,” was most recently amended in 2004 by adoption of Ordinance No. 373 and does not incorporate all of the provisions of Government Code sections 65852.2 and 65852.22.

C. Government Code sections 65852.2 and 65852.22 establish allowances and provisions for construction of ADUs and JADUs for any California jurisdiction that does not have its own local ordinance that complies with state law.

D. Government Code sections 65852.2 and 65852.22 also authorize cities and counties to adopt local ordinances with more refined standards that fall within the parameters of state law, or with more relaxed standards than those that are prescribed in state law.

E. On March 22, 2021, the City Council established a set of goals for the City Council and staff to aim to accomplish in 2021/2022, and Land Use and Housing Goal 2 was to amend Clayton’s ADU ordinance to establish local ADU and JADU permitting procedures and regulations in compliance with state law.

F. CMC chapter 2.12 establishes a Planning Commission for the City of Clayton, and Government Code sections 65854 and 65855 require the Planning Commission to conduct a public hearing prior to making a recommendation to the legislative body (City Council) on a proposed amendment to the Zoning Ordinance (CMC Title 17).

G. On February 28, 2023, the Clayton Planning Commission held a duly-noticed public hearing on the City-initiated Zoning Ordinance Amendment Application ZOA-02-2022 pertaining to the establishment of local permitting procedures and regulations for the construction of ADUs and JADUs in Clayton, and at that public hearing, the Commission received and considered spoken and written testimony and evidence on the matter prior to adopting Resolution No. 03-2023 recommending City Council adoption of the proposed amendments.

H. In accordance with Government Code section and 65090, on or prior to March 10, 2023, notice of the Clayton City Council public hearing to consider the amendment to the City’s adopted zoning regulations pertaining to ADUs and JADUs was published in the East Bay Times; was posted to the notice boards at Clayton City Hall and Clayton Community Library, and to Ohm’s board in the Clayton Town Center; and was mailed electronically to interested parties who had requested such notice.

I. On March 21, 2023, the Clayton City Council held a duly-noticed public hearing on the City-initiated Zoning Ordinance Amendment Application ZOA-02-2022 pertaining to the establishment of local permitting procedures and regulations for the construction of ADUs and JADUs in Clayton, and at that public hearing, received and considered spoken and written testimony and evidence on the matter.

Section 2. Findings
Based on the information in the Community Development Department files on this project, incorporated here by reference and available for review at City Hall, 6000 Heritage Trail in Clayton, the City Council finds that:

A. The foregoing recitals are true and correct and are incorporated herein by reference.

B. The proposed Zoning Ordinance Amendment is consistent with the General Plan, and specifically, Land Use Goals 2, 4 and 10; and Housing Element Policy Goal 2 and Policy 2.3. Together, these goals and policies encourage diversity in housing types and tenures, support appropriate development controls through zoning regulation, and encourage construction of accessory dwelling units. The proposed amendment would facilitate construction of smaller, more affordable and rentable ADUs and JADUs in addition to the predominant single-family residential housing type in Clayton. The proposed amendment would establish zoning regulations and standards governing size, floor area ratio, setbacks, off-street parking requirements, and architectural compatibility of ADUs to ensure that ADUs retain the visual character of the Clayton community while complying with the provisions and limitations specified in state law. The proposed amendment would implement Housing Element Program D1 by providing property owners and city staff with a clear path toward permitting of ADUs and JADUs that is in compliance with state

law. In addition to the foregoing, the proposed Zoning Ordinance Amendment is consistent with the General Plan as a matter of law pursuant to Government Code section 65852.2(a)(1)(C).

C. The proposed Zoning Ordinance Amendment would serve the public necessity, convenience and general welfare. The proposed ordinance simplifies and presents the extensive and detailed provisions of state law in a more approachable format for residents and city staff, starting with classification of ADUs as Type 1, Type 2 or Site Plan Review projects. This more approachable organization of the statutory regulations of state law adds better clarity to the city’s regulations, reducing questions and potential areas of confusion for residents interested in building ADUs/JADUs and their designers, and creating a clearer and more efficient path for city staff to process ADU and JADU permit requests. The proposed ordinance also offers additional flexibility to local property owners, expanding on the provisions in state law to allow for ADUs not otherwise conforming with statute subject to Site Plan Review permit approval, and not carrying forward a requirement for owner-occupancy of a property with Type 2 or Site Plan Review ADUs. ADUs in themselves offer opportunities for smaller and more affordable units that accommodate existing residents to age in place, and provide opportunities for new residents and newly-independent people to live in affordably-priced rental housing in the city. By providing rental income or opportunities to house extended family, ADUs can also reduce mortgage costs and eliminate the expenses of long-term care residential care, resulting in more affordable housing and cost savings for existing residential property owners, as well.

D. Other revisions to CMC Title 17 are necessary to ensure consistency of these municipal code titles with the amended text of the ADU/JADU zoning regulations.

E. This recommended amendment to Clayton Municipal Code is statutorily exempt from the California Environmental Quality Act (Public Resources Code section 21000 et seq.), pursuant to Public Resources Code section 21080.17, Application of Division to Ordinances Implementing Law Relating to Construction of Dwelling Units and Second Units.

Section 3. Zoning Ordinance Amendment
Based on the findings and the authority set forth above, the City Council hereby amends Title 17 (Zoning) of the Clayton Municipal Code, as follows:

A. Deletion of Clayton Municipal Code Section 17.04.083. That Clayton Municipal Code section 17.04.083 be hereby amended and restated as shown in underline/strike-through to read as follows:
“17.04.083 Dwelling Unit, Accessory or Second.
‘Accessory dwelling unit’ or ‘Ssecond dwelling unit’ are synonymous and shall refer to

an Accessory Dwelling Unit as defined in section 17.47.020A. mean an attached or detached dwelling unit, which provides complete independent living facilities for one or more persons including, but not limited to the permanent provisions for living, sleeping, eating, cooking and sanitation. A second dwelling unit also includes an efficiency unit and manufactured home, as defined in California Health and Safety Code §§ 17958.1 and 18007, respectively.”
B. Amendment of the Off-Street Parking Space Requirements in Schedule

17.37.030A. That the parking requirements for the residential use classification, “Second Dwelling Unit,” in Clayton Municipal Code schedule

17.37.030A be hereby amended and restated as shown in underline/strikethrough to read as follows:
“Use Classification Required Off-Street Parking Spaces
Second Accessory Dwelling Unit See section 17.47.020.B 17.47.060.G” C. Amendment to Clayton Municipal Code Section 17.44.030. That Clayton Municipal Code section 17.44.030 be hereby amended and restated as shown in underline/strike-through to read as follows:
“17.44.030 Exemptions.

Any new development meeting one of the following characteristics shall be exempt from a Site Plan Review Permit. Such exempt development may directly apply for a building permit which is administratively reviewed by staff.

A. Construction not meeting one of the criteria listed above; B. Construction receiving specific design authorization pursuant to an approved:

1. Development Plan Permit;

2. Vesting Tentative Map;

3. Development Agreement.

C. Second Type 1 and Type 2 accessory dwelling units and junior accessory dwelling units administratively ministerially approved in accordance with Chapter 17.47; provided, that Type 2 accessory dwelling units shall also require an ADU Permit in accordance with the requirements of Chapter 17.47.”
D. Amendment to Clayton Municipal Code Chapter 17.47. That Clayton Municipal Code chapter 17.47 be repealed and replaced in its entirety to read as shown in the attached Exhibit A.

Section 4. Severability.

If any section, subsection, sentence, clause, or phrase of this Ordinance, or the application thereof to any person or circumstances, is held to be unconstitutional or to be otherwise invalid by any court competent jurisdiction, such invalidity shall not affect other

provisions or clauses of this Ordinance or application thereof which can be implemented without the invalid provisions, clause, or application, and to this end such provisions and clauses of the Ordinance are declared to be severable.

Section 5. Effective Date and Publication.

This Ordinance shall become effective 30 days from and after its passage. Within 15 days after the passage of the Ordinance, the City Clerk shall cause the Ordinance, with the names of those City Council members voting for and against it, to be posted in three public places heretofore designated by resolution by the City Council for the posting of ordinances and public notices. Further, the City Clerk is directed to cause the amendments adopted in Section 3 of this Ordinance to be entered into the City of Clayton Municipal Code.

The foregoing Ordinance was introduced at a regular public meeting of the City Council of the City of Clayton held on March 21, 2023.

Passed, adopted and ordered posted by the City Council of the City of Clayton at a regular public meeting thereof held on , 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

THE CITY COUNCIL OF CLAYTON, CA
__________________________________
Jeff Wan, Mayor
ATTEST:
_______________________________
Janet Calderon, City Clerk
APPROVED AS TO FORM: APPROVED BY ADMINISTRATION:
_______________________________
Malathy Subramanian, City Attorney Ron Bernal, Interim City Manager

I hereby certify that the foregoing Ordinance was duly adopted, passed, and ordered posted at a regular meeting of the City Council held on _____________, 2023.

Janet Calderon, City Clerk
Exhibit A

Chapter 17.47
Accessory Dwelling Units

17.47.005 - Purpose.

The purpose of this chapter is to allow, regulate and establish procedures for permitting of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and 65852.22.

17.47.010 - Effect of Conforming.

An ADU or JADU that conforms to the standards in this chapter will not be:

A. Deemed to be inconsistent with the city’s general plan and zoning designation for the lot on which the ADU or JADU is located.

B. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.

C. Considered in the application of any local ordinance, policy, or program to limit residential growth.

D. Required to correct a nonconforming zoning condition, as defined in subsection G of section 17.47.020. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12.

17.47.020 - Definitions.

As used in this chapter, terms are defined as follows:

A. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:

1. An efficiency unit, as defined by section 17958.1 of the California Health and Safety Code; and

2. A manufactured home, as defined by section 18007 of the California Health and Safety Code.

B. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

C. “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.

D. “Efficiency kitchen” means a kitchen that includes all of the following:

1. A cooking facility with appliances.

2. A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.

E. “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies all of the following:

1. It is no more than 500 square feet in size.

2. It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure.

3. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure.

4. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed singlefamily structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling.

5. It includes an efficiency kitchen, as defined in subsection D above.

F. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

G. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.

H. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.

I. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

J. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

K. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

17.47.030 – Permits Required.

The following permitting requirements apply to ADUs and JADUs under this chapter:

A. Type 1 ADU - Building Permit Only. If an ADU or JADU complies with each of the general requirements in section 17.47.050, it is allowed with only a building permit in the following scenarios:

1. Converted on Single-family Lot. One ADU as described in this subsection A.1 and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:
a. Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or, in the case of an ADU only, within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and
b. Has exterior access that is independent of that for the single-family dwelling; and
c. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes; and
d. The JADU complies with the requirements of California Government Code section 65852.22.

2. Limited Detached on Single-family Lot: One detached, new-construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection A.1 above), if the detached ADU satisfies each of the following limitations:
a. The side- and rear-yard setbacks are at least 4 feet. b. The total floor area is 800 square feet or smaller.
c. The peak height above grade does not exceed the applicable height limit in subsection B of section 17.47.050.

3. Converted on Multifamily Lot: One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state

building standards for dwellings. Under this subsection A.3, at least one converted ADU is allowed within an existing multifamily dwelling, up to a quantity equal to 25 percent of the existing multifamily dwelling units.

4. Limited Detached on Multifamily Lot: No more than two detached ADUs on a lot that has an existing or proposed multifamily dwelling if each detached ADU satisfies both of the following limitations:
a. The side- and rear-yard setbacks are at least 4 feet. If the existing multifamily dwelling has a rear or side yard setback of less than 4 feet, then the Director shall not require any modification to the multifamily dwelling as a condition of approving the ADU. b. The peak height above grade does not exceed the applicable height limit provided in subsection B of section 17.47.050.

B. Type 2 ADU - Administrative ADU Permit Required. An ADU that does not qualify as a Type 1 ADU (as set forth in subsection A above) may be constructed with Director approval of a building permit and an ADU Permit in compliance with the standards set forth in sections 17.47.050 and 17.47.060. An application for an ADU Permit shall be submitted on a form prescribed by the Community Development Department and be accompanied by any ADU Permit application processing fee established by City Council resolution.

17.47.040 – Process and Timing.

A. Applications for Type 1 and Type 2 ADUs (under subsections A and B of section

17.47.030, respectively) will be considered and approved ministerially, without discretionary review or a hearing.

B. The Director must approve or deny an application to create an ADU or JADU within 60 days from the date that the City receives a completed application. If the Director has not approved or denied the completed application within 60 days, the application is deemed approved unless either of the following occurs:

1. The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay; or

2. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the Director may delay acting on the permit application for the ADU or JADU until the Director approves or denies the permit application to create the new single-family or multifamily dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing.

C. If the Director denies an application to create an ADU or JADU, the Director must provide the applicant with a full set of comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. The Director must provide the applicant with the notice of the denial and the corresponding comments within the 60-day time period established by subsection B above.

D. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.

17.47.050 – General ADU and JADU Requirements.

The following requirements apply to all Type 1 and Type 2 ADUs and JADUs that are approved under section 17.47.030:

A. Zoning.

1. A Type 1 ADU or JADU subject only to a building permit under subsection A of section 17.47.030 may be created on a lot in a residential or mixeduse district.

2. A Type 2 ADU or JADU subject to an ADU permit under subsection B of section 17.47.030 may be created on a lot that is zoned to allow singlefamily dwelling residential use or multifamily dwelling residential use.

B. Height.

1. Except as otherwise provided by subsections B.2 and B.3 below, a detached ADU created on a lot with an existing or proposed single-family or multifamily dwelling unit may not exceed 16 feet in height.

2. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single-family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in section 21155 of the Public Resources Code, and the ADU may be to 2 additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

3. A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.

4. An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower. Notwithstanding the

foregoing, ADUs subject to this subsection B.4 may not exceed two stories.

5. For purposes of this subsection B, height is measured above existing legal grade to the peak of the structure.

C. Fire Sprinklers.

1. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.

2. The construction of an ADU does not trigger the requirement for fire sprinklers to be installed in the existing primary dwelling.

D. Rental Term. No Type 1 ADU or JADU may be rented for a term that is shorter than 30 days.

E. No Separate Conveyance. An ADU or JADU may be rented, but, except as otherwise provided in Government Code Section 65852.26, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot).

F. Septic System. If the ADU or JADU will connect to an onsite wastewater treatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.

G. Owner Occupancy.

1. Owner occupancy is not required on a property on which an ADU has been created.

2. As required by state law, properties on which a JADU has been created are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement in this subsection G.2 does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.

H. Deed Restriction. Prior to final inspection for occupancy of an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Director. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the Director and must provide that:

1. Except as otherwise provided in Government Code Section 65852.26, the ADU or JADU may not be sold separately from the primary dwelling.

2. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section.

3. The deed restriction runs with the land and may be enforced against future property owners.

4. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code.

5. The deed restriction is enforceable by the Director for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.

I. Income Reporting. In order to facilitate the City’s obligation to identify adequate sites for housing in accordance with Government Code sections 65583.1 and 65852.2, with the building permit application, the applicant must provide the City with an estimate of the projected annualized rent that will be charged for the ADU or JADU. Notwithstanding the foregoing, the requirements of this subsection shall only apply to properties for which the ADU or JADU is being built to satisfy affordable inclusionary housing requirements of a development or is subject to an affordable housing agreement between the City and the property owner.

J. Building & Safety.

1. Compliance with building code. Subject to subsection J.2 below, all ADUs and JADUs must comply with all local building code requirements.

2. No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in

section 310 of the California Building Code, unless the building official or code enforcement officer makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection J.2 prevents the city from changing the occupancy code of a space that was uninhabitable space or that was only permitted for nonresidential use and was subsequently converted for residential use in accordance with this section.

17.47.060 - Development Standards. The following requirements apply only to Type 2 ADUs that require an ADU permit under subsection B of section 17.47.030.

A. Maximum Size.

1. The maximum size of a detached or attached ADU subject to this section is 1,200 square feet.

2. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.

3. Application of other development standards in this section 17.47.060, such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection A.2 above or of an FAR, lot coverage limit, minimum front yard setback or open-space requirement may require the ADU to be less than 800 square feet.

B. Floor Area Ratio (FAR). Subject to subsection A.3 above, no ADU subject to this section may cause the floor area ratio of all residential and accessory structures on a lot to exceed the maximum FAR as specified according to the following schedule:

Net Parcel Area (square feet) Maximum FAR
Up to 7,000 0.55
7,001 to 8,000 0.53
8,001 to 9,000 0.51
9,001 to 10,000 0.49
10,001 to 11,000 0.47
11,001 to 12,000 0.45
12,001 to 13,000 0.43
13,001 to 14,000 0.41
14,001 to 15,000 0.39
15,001 to 16,000 0.37
Over 16,000 0.35

C. Setbacks.

1. An ADU that is subject to this section must conform to the following minimum front-yard setbacks, subject to subsection A.3 above:
a. R-10, R-12, R-15 and All Multiple Family Residential Districts: 20 feet
b. R-20 District: 25 feet
c. R-40 and R-40-H Districts: 40 feet

2. An ADU that is subject to this section must conform to minimum 4-foot side- and rear-yard setbacks.

3. No setback is required for an ADU that is subject to this section if the ADU is constructed in the same location and to the same dimensions as an existing structure.

D. Lot Coverage. Subject to subsection A.3 above, no ADU subject to this section may cause the total lot coverage of the lot to exceed either:
a. 50 percent on a lot with an area less than 15,000 square feet; or b. 35 percent on a lot with an area of 15,000 or more square feet.

E. Minimum Open Space. No ADU subject to this section may cause the total percentage of open space of the lot to fall below 35 percent, subject to subsection A.3.

F. Passageway. No passageway, as defined by subsection H of section 17.47.020, is required for an ADU.

G. Parking.

1. Generally. One off-street parking space is required for each ADU. The parking space may be provided in setback areas or as tandem parking, as defined by subsection K of section 17.47.020 above.

2. Exceptions. No parking under subsection G.1 above is required in the following situations:
a. The ADU is located within one-half mile walking distance of public transit, as defined in subsection J of section 17.47.020 above.

b. The ADU is located within an architecturally and historically significant historic district.
c. The ADU is part of the proposed or existing primary residence or an accessory structure under subsection A of section 17.47.040. d. When on-street parking permits are required but not offered to the occupant of the ADU.
e. When there is an established car share vehicle stop located within one block of the ADU.
f. For an ADU constructed as an efficiency unit as defined by section 17958.1 of the California Health and Safety Code.
g. When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot; provided, that the ADU or the lot satisfies any other criteria listed in subsections a through f, above.

3. No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces within the garage, carport, or covered parking structure are not required to be replaced.

H. Architectural Requirements.

1. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design elements of those of the primary dwelling.

2. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.

3. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.

4. The ADU must have an independent exterior entrance, apart from that of the primary dwelling.

5. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of 7 feet.

6. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight.

7. All windows and doors in an ADU that are less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least 6 feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.

I. Landscape Requirements. Evergreen landscape screening must be planted and maintained between the ADU and the side and rear lot lines of the property, as follows:

1. At least one 15-gallon size tree shall be planted for every 15 linear feet of exterior wall, or at least one 15-gallon size shrub shall be planted for every 10 linear feet of exterior wall.

2. Plant specimens must be capable of reaching a height of at least 6 feet tall at maturity.

3. Notwithstanding the foregoing, a solid fence of at least 6 feet in height may be installed in lieu of landscaping where the distance between the ADU and property line is less than 5 feet.

4. All landscaping must be low water use and drought-tolerant.

J. Historical Protections. An ADU that is on or within 300 feet of real property that is listed in the California Register of Historic Resources must do both of the following:

1. Comply with the objective ministerial standards for Preservation, Rehabilitation, Restoration, or Reconstruction in the Secretary of the Interior’s Standards for the Treatment of Historic Properties, as applicable.

2. Be located so as to not be visible from any public right-of-way.

17.47.070 - Fees.

The following requirements apply to all ADUs that are approved under section

17.47.030 of this chapter.

A. Impact Fees.

1. No impact fee is required for an ADU that is less than 750 square feet in size. For purposes of this subsection A, “impact fee” means a “fee” under the Mitigation Fee Act (Gov. Code § 66000(b)) and a fee under the

Quimby Act (Gov. Code § 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.

2. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.)
B. Utility Fees.

1. If an ADU is constructed with a new single-family home, a separate utility connection directly between the ADU and the utility, and payment of the normal connection fee and capacity charge for a new dwelling are required.

2. Except as described in subsection B.1 above, converted ADUs on a single-family lot that are created under subsection A.1 of section

17.47.030 are not required to have a new or separate utility connection directly between the ADU and the utility. Nor is a connection fee or capacity charge required.

3. Except as described in subsection B.1, all ADUs that are not covered by subsection B.2 require a new, separate utility connection directly between the ADU and the utility.
a. The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system.
b. The portion of the fee or charge that is charged by the City may not exceed the reasonable cost of providing this service.

17.47.080 – Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures
A. Generally. The Director will not deny an application to construct an ADU or JADU due to a nonconforming zoning condition, building code violation or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.

B. Unpermitted ADUs constructed before 2018.

1. Permit to Legalize. As required by state law, the Director may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if denial is based on either of the following grounds:
a. The ADU violates applicable building standards; or
b. The ADU does not comply with the state ADU law (Government Code section 65852.2) or this ADU ordinance (chapter 17.47).

2. Exceptions.
a. Notwithstanding subsection B.1 above, the Director may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if the Director makes a finding that correcting a violation is necessary to protect the health and safety of the public or of the occupants of the structure. b. Subsection B.1 above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code section 17920.3.

17.47.090 - Nonconforming ADUs and Discretionary Approval.

Any proposed ADU or JADU that does not conform to the objective standards set forth in sections 17.47.005 through 17.47.080 of this chapter may be allowed by the City with a Site Plan Review Permit, in accordance with chapter 17.44 of this title. [Type here] Agenda Item: 6(d)

STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: ANGELINE LOEFFLER, FINANCE DIRECTOR

NITISH SHARMA, FINANCE CONSULTANT
DATE: APRIL 4, 2023
SUBJECT: ADOPTION OF A REVISED INVESTMENT POLICY

RECOMMENDATION
Staff recommends that the City Council adopt the Updated City of Clayton Investment Policy dated April 4, 2023.

BACKGROUND
On December 5, 2022, Mr. Sharma, Interim Finance Director at the time, presented a draft updated Investment Policy along with the current 2018 Investment Policy (Attachment 1) to the Budget and Audit Committee for review and feedback. The Committee members had extensive discussion and had different thoughts on the investment types and how much of the portfolio it represents. On February 27, 2023, the staff presented both current and updated version of investment policy again in order to gain further direction from the Budget and Audit Committee members and received additional comments and feedback. The Committee members provided their comments and feedback at this meeting.

DISCUSSION
Staff has taken comments and direction received from the Budget and Audit Committee members and updated the Investment Policy (Attachment 3) combining areas from both versions of Investment Polices; 2018 Investment Policy (Attachment 1) and December 2022 draft updated Investment Policy.

Highlights of the final draft Investment Policy April 4, 2023 include the following updates:
• Section IV – Assignment and Duties are updated by adding clarification on each assigned capacity’s duties and responsibilities.
• Section VI, Investment Objectives: contents are restored to the original Investment Policy (Attachment 1) to reflect that investment terms are not to exceed five (5) years and the weighted average maturity of funds to three (3) years.

Subject: FY2022/23 Mid-Year Budget Review
Date: February 27, 2023

o subsection A-2, Market or Interest Rate Risk: add “…the weighted average maturities shall be based on the market conditions or requirements of the cash being invested.”
• Section VII – Authorized Investments
o Removed from the original Investment Policy (attachment 1) – “Mortgage passthrough security, collateralized mortgage obligation, mortgage backed or other pay-through bond, or U.S. Corporate bond of maximum of five (5) years maturity…” has been removed.
o Updated Investment Policy dated March 2023 (attachment 3) the specific threshold and terms of what as City can invest.
• Section XIII – Reporting Requirements: the periodical review requirement. o Add additional elements to the reporting requirement H through L. • Section XVI – Policy Review: City Manager, along with City Treasurer and the City Council has been added to review the Investment Policy annually.

The language changes are underlined in the Investment Policy dated April 4 2023 (Attachment 2).

ATTACHMENTS
Attachment 1: 2018 Investment Policy
Attachment 2: Updated Investment Policy April 4, 2023
1 Attachment 1

INVESTMENT POLICY

CITY OF CLAYTON, CALIFORNIA
I. POLICY
It is the policy of the City of Clayton [and the Redevelopment Agency of the City of Clayton] {together, referred to as the “City”} to meet the short and long-term cash flow demands of the City in a manner which will provide for the safety of principal monies with sufficient liquidity, while providing a reasonable investment return. The purpose of this Investment Policy is to identify and outline various methods and procedures for the prudent and systematic investment of public funds.

II. SCOPE
This Investment Policy applies to all investment activities and financial assets of the City {hereinafter, the “Funds”}. The following Funds are covered by this Investment Policy and are accounted for in the City’s Comprehensive Annual Financial Report:
(A) General Fund
(B) Special Revenue Fund
(C) Debt Service Fund
(D) Capital Project Funds
(E) Enterprise Funds
(F) Internal Services Funds
(G) Trust and Agency Funds
(H) Any new funds created by the City Council.

Bond proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond documents. Bond proceeds are not considered part of the Funds nor subject to this Investment Policy.

III. DELEGATION OF AUTHORITY
The City Treasurer is expressly authorized to invest the City’s Funds, pursuant to California Government Code Sections 53600, 16429.1 and 53684 et seq. The City Treasurer will meet with, and obtain the approval of, the City Manager prior to investment of the Funds. Investments made routinely by the Finance Manager are restricted to the State Pool [Local Agency Investment Fund, LAIF], California Asset Management Program (CAMP), or to securities maturing within six (6) months. Prior to investing in securities, the Finance Manager will consider the cash flow requirements of the City and may invest in securities maturing over six (6) months if directed by the City Treasurer or the City Manager in writing or verbally, if confirmed in writing within thirty (30) days.
2 IV. ASSIGNMENTS AND DUTIES
A. City Council. The City Council is elected by the registered voters of Clayton.

The Council establishes policies for the City and approves the expenditure of City Funds.

B. City Manager. The City Manager is appointed by the City Council and implements policies established by the City Council. The City Manager is responsible for all City departments and is also the Chief Fiscal Officer and is responsible for general management of all investments of Funds.

C. City Treasurer. The City Treasurer is appointed by the City Council and serves at the will and pleasure of the Council. Pursuant to the California Government Code, the City Treasurer is primarily responsible for the proper and prudent investment of Funds, and periodically reviews, makes recommendations regarding, and approves the investments of Funds and investment policies.

D. Finance Manager. The Finance Manager is appointed by the City Manager and is responsible for the daily supervision of all financial transactions of the City, including but not limited to the administration, monitoring, reporting and the restricted placement of Fund investments.

Together, the City Treasurer, City Manager and the Finance Manager function and operate as a check-and-balance system for the prudent and proper investment of all Funds.

V. PRUDENCE
Investments shall be made pursuant to the “Prudent Investor” standard, mandated by California Government Code Section 53600.3, which states:
“When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, a trustee is authorized to acquire investments as authorized by law.”
The “Prudent Investor” standard shall be applied in the context of managing the Funds.

The City Treasurer and each investment employee, acting within the intent and scope of this Investment Policy and other written procedures and exercising due diligence, shall 3 be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

VI. INVESTMENT OBJECTIVES
The objective of the investment portfolio is to meet the short and long-term cash flow demands of the City. To achieve this objective, the portfolio will be structured to provide Safety of Principal, Liquidity and Return on Investments.

A. Safety of Principal.

Safety of the City’s investments is the primary objective. Investments of the Funds shall be undertaken in a manner that seeks to ensure that capital losses are minimized, whether from institution default, broker-dealer default, or erosion of the market value of securities. The City shall seek to preserve principal by mitigating two types of risk, in order of importance:

1. Credit Risk. Credit risk, defined as the risk of loss due to failure of an issuer of a security, shall be mitigated by purchasing Treasuries or high-grade securities. All investments beyond Treasury securities will be diversified so that the failure of any one issuer would not unduly harm the City’s cash flow. Credit risk shall also be mitigated by pre-qualifying financial institutions, broker-dealers, intermediaries and advisors with which the City does business.

2. Market or Interest Rate Risk. Interest rate risk is the risk the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by structuring Funds so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and by investing operating funds primarily in shorter-term securities. The cash flow is updated on a daily basis and will be considered prior to investment of securities in order to limit the need to sell investments for liquidity purposes.

Long-term securities shall not be purchased for the sole purpose of short-term speculation. Securities shall not be sold prior to maturity with the following exceptions: 1). A declining credit security would be sold early to minimize loss of principal; 2). A security swap would improve the quality, yield, or target duration in the portfolio; or 3). Liquidity needs of the portfolio require the security be sold.
4 The weighted average maturity of the Funds is limited to three (3) years or less. Purchases of investments will be restricted to securities with a final stated maturity not to exceed five (5) years.

B. Liquidity.

Liquidity is the second most important objective of City investments. The Funds shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Since all possible cash demands cannot be anticipated, the Funds will maintain a liquidity buffer and invest primarily in securities with active secondary or resale markets (dynamic liquidity).

C. Return on Investments.

Return on investment should be considered and maximized after the basic objectives of safety and liquidity have been met. The Funds shall be designed to attain a return on investments through budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

VII. AUTHORIZED INVESTMENTS
The investments set forth in this section are authorized investments pursuant to Section 53601 of the California Government Code and are herewith authorized investments for City Funds:

A. The State of California Investment Pool, known as the Local Agency Investment Fund (LAIF);
B. Passbook savings accounts, demand deposits;
C. Certificate of Deposit placed with insured banks, savings and loans, or credit unions up to a maximum of $250,000 per insured depository institution for each account ownership category;
D. Bonds issued by the City, including bonds payable solely out of, controlled, or operated by the City or by an agency or authority of the City; E. United States Treasury notes, bonds bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest;
5 F. Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency or authority of the state; and/or
G. Mortgage pass-through security, collateralized mortgage obligation, mortgagebacked or other pay-through bond, or U. S. corporate bond of a maximum of five (5) years maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an “A’ or higher rating for the issuers debt, as provided by a nationally recognized rating service and rated in a rating category of “AA” or its equivalent or better by a nationally recognized rating service.

Purchase of securities authorized by this subdivision may not exceed twenty percent (20%) of the City’s surplus money that may be invested pursuant to this Section.

H. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.

I. Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive, and including but not limited to CAMP. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issued the shares shall have retained an investment adviser that meets all of the following criteria:

1. The adviser is registered or exempt from registration with the Securities and Exchange Commission.

2. The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.

3. The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

For all other recommended investment of Funds by the City Treasurer and the City Manager, the City Council shall adopt the individual authorized instrument by resolution at a regular public meeting thereof.
6 VIII. PROHIBITED INVESTMENTS AND TRANSACTIONS
A. The City shall not invest any Funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages or reverse purchase agreements.

B. The City shall not purchase or sell securities on margin.

C. The City shall not invest any Funds in any security that could result in zero interest accrual if held to maturity date.

IX. ALLOCATION OF INTEREST EARNINGS
When a single investment is made from a single Fund, interest on that investment is to be credited to that source Fund. When an investment represents multiple Funds, the interest shall be distributed based on the proportionate share of each Fund included in the aggregate investment.

When investments result in interest paid for a period greater than one (1) month, the interest shall be distributed proportionately based on the average of the monthly beginning balances of each involved Fund.

X. DIVERSIFICATION
The investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. In a diversified portfolio it is recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented.

XI. PUBLIC TRUST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize the investment portfolio is subject to public review, scrutiny and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the highest ideals of the public trust.

XII. ETHICS AND CONFLICTS OF INTEREST
The City Treasurer and other employees or elected officials involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. The City Treasurer and investment employees and elected 7 officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio and shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of their entity.

During the course of the year, if there is an event subject to disclosure that could impair the ability of the City Treasurer or investment employees to make impartial decisions, the City Council shall be notified in writing within ten (10) days of the event.

XIII. REPORTING REQUIREMENTS
The Finance Manager shall submit a quarterly investment report to the City Council. This report will include the following elements:

A. Type of each investment.

B. Financial institution.

C. Date of Maturity.

D. Amount of deposit or cost of security.

E. Current market value of securities.

F. Rate of Interest
G. Weighted average maturity of the investments.

XIV. INTERNAL CONTROLS
The City Manager shall ensure the development of a system of internal investment controls and a segregation of duties and responsibilities of investment functions in order to assure an adequate system of internal control over the investment function. This segregation of duties will take into account the authorized staffing levels of the City.

Internal control procedures shall address wire controls, separation of duties, delivery of securities to a third party for custodial safekeeping, and written procedures for placing investment transactions.

XV. GENERAL FUND RESERVE CONTINGENCY
The City Manager shall set aside Funds designated as General Fund Reserve Contingency (GFRC) to protect the City from unexpected financial expenses and to absorb the impact of deficiencies in cash flow not anticipated at the time the fiscal year budget was adopted.

The General Fund Reserves of the City shall include $250,000.00 (two hundred fifty thousand dollars) designated as GFRC – Emergency Component. Further, the City will make every effort to maintain a GFRC, cash flow component, in an amount not less than fifty percent (50%) of the adopted annual General Fund budget. The amounts of 8 the GFRCs will be reviewed annually prior to adoption of the General Fund budget. City Council approval shall be required for any expenditure that would decrease the amount of the GFRC below the level established at the time of budget adoption.

XVI. POLICY REVIEW
The Investment Policy shall be reviewed at least annually by the City Treasurer and the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return on investments, along with its relevance to current law, financial and economic trends, and meets the needs of the City. * * * * *
Established: 30 July 2002
City Council adopted revisions: 21 April 2015
03 August 2010
05 May 2005
06 August 2002
21 April 2015
20 November 2018
1 Attachment 2
City of Clayton
Investment Policy
April 4, 2023
2 Attachment 2

INVESTMENT POLICY

CITY OF CLAYTON, CALIFORNIA
I. POLICY
It is the policy of the City of Clayton [and the Redevelopment Agency of the City of Clayton] {together, referred to as the “City”} to meet the short and long-term cash flow demands of the City in a manner which will provide for the safety of principal monies with sufficient liquidity, while providing a reasonable investment return. The purpose of this Investment Policy is to identify and outline various methods and procedures for the prudent and systematic investment of public funds.

II. SCOPE
This Investment Policy applies to all investment activities and financial assets of the City {hereinafter, the “Funds”}. The following Funds are covered by this Investment Policy and are accounted for in the City’s Comprehensive Annual Financial Report:
(A) General Fund
(B) Special Revenue Fund
(C) Debt Service Fund
(D) Capital Project Funds
(E) Enterprise Funds
(F) Internal Services Funds
(G) Trust and Agency Funds
(H) Any new funds created by the City Council.

Bond proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond documents. Bond proceeds are not considered part of the Funds nor subject to this Investment Policy.

III. DELEGATION OF AUTHORITY
The City Treasurer is expressly authorized to invest the City’s Funds, pursuant to California Government Code Sections 53600, 16429.1 and 53684 et seq. The City Treasurer will meet with, and obtain the approval of, the City Manager prior to investment of the Funds. Investments made routinely by the Finance Manager are restricted to the State Pool [Local Agency Investment Fund, LAIF], California Asset Management Program (CAMP), or to securities maturing within six (6) months. Prior to investing in securities, the Finance Manager will consider the cash flow requirements of the City and may invest in securities maturing over six (6) months if directed by the City Treasurer or the City Manager in writing or verbally, if confirmed in writing within thirty (30) days.
3 Attachment 2
IV. ASSIGNMENTS AND DUTIES
A. City Council. The City Council is elected by the registered voters of Clayton.

The Council establishes policies for management to adhere and follow when investing the City’s liquid cash.

B. City Manager. The City Manager is appointed by the City Council and implements policies established by the City Council. The City Manager is responsible for all City departments and is also the Chief Fiscal Officer and is responsible for general management of all investments of Funds.

C. City Treasurer. The City Treasurer is appointed by the City Council and serves at the will and pleasure of the Council. The City Treasurer is designed to provide an ongoing internal review to prevent the potential for converting assets or concealing transactions. Pursuant to the California Government Code, the City Treasurer is primarily responsible for the proper and prudent investment of Funds, and periodically reviews, makes recommendations regarding, and approves the investments of Funds and investment policies.

D. Finance Director. The Finance Director is appointed by the City Manager and is responsible for managing the City Funds, acting in accordance within written procedures and the intent and scope of this Investment Policy and exercising due diligence, shall be relieved of personal liability for an individual security’s credit risk or market price changes, provided that deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

Together, the City Treasurer, City Manager and the Finance Director function and operate as a check-and-balance system for the prudent and proper investment of all Funds.

V. PRUDENCE
Investments shall be made pursuant to the “Prudent Investor” standard, mandated by California Government Code Section 53600.3, which states:
“When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, a trustee is authorized to acquire investments as authorized by law.”
The “Prudent Investor” standard shall be applied in the context of managing the Funds.

The City Treasurer and each investment employee, acting within the intent and scope of 4 Attachment 2
this Investment Policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

VI. INVESTMENT OBJECTIVES
The objective of the investment portfolio is to meet the short and long-term cash flow demands of the City. To achieve this objective, the portfolio will be structured to provide Safety of Principal, Liquidity and Return on Investments.

A. Safety of Principal.

Safety of the City’s investments is the primary objective. Investments of the Funds shall be undertaken in a manner that seeks to ensure that capital losses are minimized, whether from institution default, broker-dealer default, or erosion of the market value of securities. The City shall seek to preserve principal by mitigating two types of risk, in order of importance:

1. Credit Risk. Credit risk, defined as the risk of loss due to failure of an issuer of a security, shall be mitigated by purchasing Treasuries or high-grade securities. All investments beyond Treasury securities will be diversified so that the failure of any one issuer would not unduly harm the City’s cash flow. Credit risk shall also be mitigated by pre-qualifying financial institutions, broker-dealers, intermediaries and advisors with which the City does business.

2. Market or Interest Rate Risk. Interest rate risk is the risk the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by structuring Funds so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and by investing operating funds primarily in shorter-term securities. The cash flow is updated on a daily basis and will be considered prior to investment of securities in order to limit the need to sell investments for liquidity purposes.

Long-term securities shall not be purchased for the sole purpose of short-term speculation. Securities shall not be sold prior to maturity with the following exceptions: 1). A declining credit security would be sold early to minimize loss of principal; 2). A security swap would improve the quality, yield, or target duration in the portfolio; or 3). Liquidity needs of the portfolio require the security be sold.
5 Attachment 2
The weighted average maturity of the Funds is limited to three (3) years or less. Purchases of investments will be restricted to securities with a final stated maturity not to exceed five (5) years.

The weighted average maturities shall be based on the market conditions or requirements of the cash being invested.

B. Liquidity.

Liquidity is the second most important objective of City investments. The Funds shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Since all possible cash demands cannot be anticipated, the Funds will maintain a liquidity buffer and invest primarily in securities with active secondary or resale markets (dynamic liquidity).

C. Return on Investments.

Return on investment should be considered and maximized after the basic objectives of safety and liquidity have been met. The Funds shall be designed to attain a return on investments through budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

VII. AUTHORIZED INVESTMENTS
The investments set forth in this section are authorized investments pursuant to Section 53601 of the California Government Code and are herewith authorized investments for City Funds:

LOCAL AGENCY INVESTMENT FUND: The State of California Investment Pool, known as the Local Agency Investment Fund (LAIF)As authorized in Government Code Section 16429.1, local agencies may invest in the Local Agency Investment Fund (LAIF), a pooled investment money market fund established by the State of California, and overseen by the State Treasurer, which allows local agencies to pool their investment resources. Principal may be withdrawn on a one-day notice. Interest earned is paid quarterly. The fees charged are limited to one-quarter of one percent of the earnings of the fund. Current policies of LAIF set minimum and maximum amounts of monies that may be invested as well as maximum numbers of transactions that are allowed per month. The City may invest up to the maximum amount permitted by LAIF. The LAIF is in trust in the custody of the State Treasurer. The City’s right to withdraw its deposited monies from LAIF is not contingent upon the State’s ability to adopt a State Budget by July 1st of each new fiscal year.

NON-NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). As authorized in Government Code Section 53601.8, local agencies may invest in Certificates of Deposit.

These instruments must comply with Government Code Sections 16500 or 16600. This is a receipt for funds deposited in a Bank or Savings and Loan Association for a specified period at a specified rate of interest. The first $250,000 of a CD is insured by the FDIC; as such, the City Manager may waive collateral requirements for CD investments up to this amount. Investments in CD's in excess of $250,000 must be collateralized by Treasury Department Securities, which must be at least 110% of the face value of the CD's 6 Attachment 2
in excess of the first $250,000, or by first mortgage loans, which must be at least 150% of the face value of the CD balance in excess of the first $250,000. No more than 20% of the portfolio may be invested in certificates of deposit. The City shall invest in CD’s that matures in two years and no more than five years.

All institutions must: (1) have a minimum of $100 million in assets; (2) have a demonstrated history of positive earnings; and, (3) must carry a minimum 3.5% equity ratio and hold that ratio for at least one year prior to the City’s investment. All institutions must be located within the State of California. For collateralized or negotiable certificates of deposit, the institution must have a minimum $1 billion in assets, in addition to meeting the above criteria.

NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD). Allowable certificates of deposits must be issued by a nationally or state-chartered bank or a state or federal association, a state or federal credit union, or by a federally licensed or state licensed branch of a foreign bank.

The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.

The maturity period for this investment vehicle may not exceed five years unless approved by the Council. No more than 30% of the total portfolio may be invested in these securities.

No more than 5% of the portfolio may be invested in any single issuer.

MUNICIPAL BONDS OF THE STATE OF CALIFORNIA OR LOCAL AGENCIES:

As authorized in Government Code Section 53601(e), local agencies may invest in Bonds of the State of California and any local government in the State of California, which are rated in the “A” category or better by one NRSRO at the time of investment. In no event shall this classification of investment exceed 30% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer.

U.S. TREASURY NOTES, U.S. TREASURY BILLS , U.S. GOVERNENT AGENCY ISSUES AND GOVERNMENT SPONSORED ENTERPRISES: United States Treasury notes, bonds bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There are no limits U.S. GOVERNMENT AGENCY ISSUES AND GOVERNMENT SPONSORED
ENTERPRISES: Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises. On the dollar amount or percentage that the City may invest in U.S. Treasury Bills.; MUTUAL FUNDS and MONEY MARKET MUTUAL FUNDS. Mutual Funds are referred to in California Government Code Section 53601(l), as "shares of beneficial interest issued by diversified management companies." Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 are authorized investments for funds subject to the following provisions:
• MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code Section 53601(a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
• Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) Nationally Recognized Statistical Rating Organizations 7 Attachment 2
(NRSROs); or
• Have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code Section 53601 and with assets under management in excess of $500 million. • No more than 10% of the total portfolio may be invested in Mutual Funds. • No more than 5% of the total portfolio may be invested in any one issuer. • MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
 Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
 Have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
 No more than 10% of the total portfolio may be invested in Money Market Mutual Funds.
 No more than 5% of the total portfolio may be invested in any one issuer.

GOVERNMENT INVESTMENT POOLS: Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive, and including but not limited to California Asset Management Program (CAMP). Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issued the shares shall have retained an investment adviser that meets all of the following criteria:
• The adviser is registered or exempt from registration with the Securities and Exchange Commission.
• The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. • The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

For all other recommended investment of Funds by the City Finance Director and the City Manager, the City Council shall adopt the individual authorized instrument by resolution at a regular public meeting thereof.
8 Attachment 2
VIII. PROHIBITED INVESTMENTS AND TRANSACTIONS
A. The City shall not invest any Funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages or reverse purchase agreements.

B. The City shall not purchase or sell securities on margin.

C. The City shall not invest any Funds in any security that could result in zero interest accrual if held to maturity date.

IX. ALLOCATION OF INTEREST EARNINGS
When a single investment is made from a single Fund, interest on that investment is to be credited to that source Fund. When an investment represents multiple Funds, the interest shall be distributed based on the proportionate share of each Fund included in the aggregate investment.

When investments result in interest paid for a period greater than one (1) month, the interest shall be distributed proportionately based on the average of the monthly beginning balances of each involved Fund.

X. DIVERSIFICATION
The investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. In a diversified portfolio it is recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented.

XI. PUBLIC TRUST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize the investment portfolio is subject to public review, scrutiny and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the highest ideals of the public trust.

XII. ETHICS AND CONFLICTS OF INTEREST
The City Treasurer and other employees or elected officials involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. The City Treasurer and investment employees and elected 9 Attachment 2
officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio and shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of their entity.

During the course of the year, if there is an event subject to disclosure that could impair the ability of the City Treasurer or investment employees to make impartial decisions, the City Council shall be notified in writing within ten (10) days of the event.

XIII. REPORTING REQUIREMENTS
The Finance Director shall submit a quarterly investment report to the City Council. This report will include the following elements:

A. Type of each investment.

B. Financial institution.

C. Date of Maturity.

D. Amount of deposit or cost of security.

E. Current market value of securities.

F. Rate of Interest
G. Weighted average maturity of the investments.

H. Discussion of the current economic climate
I. Statement that the portfolio is in compliance with this Investment Policy or the manner in which the portfolio is not in compliance.

J. Statement of the City’s ability to meet anticipated expenditure requirements for the next six months, or an explanation as to why sufficient money may not be available
K. Quarterly review of the investment portfolio with the Finance Director, City Manager and City Treasurer (if available).

L. Quarterly meeting with the Finance and Budget Committee with the City staff and the City’s broker/dealer.

XIV. INTERNAL CONTROLS
The City Manager shall ensure the development of a system of internal investment controls and a segregation of duties and responsibilities of investment functions in order to assure an adequate system of internal control over the investment function. This segregation of duties will take into account the authorized staffing levels of the City.

Internal control procedures shall address wire controls, separation of duties, delivery of securities to a third party for custodial safekeeping, and written procedures for placing investment transactions.

XV. GENERAL FUND RESERVE CONTINGENCY
The City Manager shall set aside Funds designated as General Fund Reserve Contingency (GFRC) to protect the City from unexpected financial expenses and to 10 Attachment 2
absorb the impact of deficiencies in cash flow not anticipated at the time the fiscal year budget was adopted.

The General Fund Reserves of the City shall include $250,000.00 (two hundred fifty thousand dollars) designated as GFRC – Emergency Component. Further, the City will make every effort to maintain a GFRC, cash flow component, in an amount not less than fifty percent (50%) of the adopted annual General Fund budget. The amounts the GFRCs will be reviewed annually prior to adoption of the General Fund budget. City Council approval shall be required for any expenditure that would decrease the amount of the GFRC below the level established at the time of budget adoption.

XVI. POLICY REVIEW
The Investment Policy shall be reviewed at least quarterly by the City Manager and City Treasurer and the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return on investments, along with its relevance to current law, financial and economic trends, and meets the needs of the City. * * * * *
Established: 30 July 2002
City Council adopted revisions: 21 April 2015
03 August 2010
05 May 2005
06 August 2002
21 April 2015
20 November 2018
04 April 2023
Agenda Item: 6(e)
1 AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: MALA SUBRAMANIAN, CITY ATTORNEY
DATE: APRIL 4, 2023
SUBJECT: National Opioid Litigation and Authorization to Participate in Additional Settlement Agreements Arising from the Litigation ___________________________________________________________________________

RECOMMENDATION
Authorize the City Attorney to take all necessary steps and execute appropriate documents to participate in the Additional Settlement Agreements with the Additional Distributors and any future Settlement Agreements with new Distributors, agree to the State Subdivision Agreements, and allow direct payment to be made to the County.

BACKGROUND
On December 7, 2021, the City Council authorized joining settlement agreements related to national opioid litigation, specifically two nationwide Settlements Agreements1 (Settlements) to resolve opioid litigation against the three largest pharmaceutical distributors, McKesson, Cardinal Health and Amerisource Bergen (Distributors) and one manufacturer, Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, Janssen).

California has joined both Settlements and expects to receive up to 9.92% of the national settlement funds.

The California State-Subdivision Agreements2 provide the framework for how funds from the Settlements may be distributed, allocated, and spent in California. The amount that California receives will depend on how many states and eligible cities and counties join the Settlements.

California may receive up to $1.8 billion from the Distributors Settlement to be paid over 18 years and $423 million from the Janssen Settlement to be paid over 9 years. The funds are 1 Distributors Settlement Agreement and Janssen Settlement Agreement - https://oag.ca.gov/opioids 2 California State Subdivision Agreement – Distributors and Janssen - https://oag.ca.gov/opioids 2 divided in three funds: (1) the state fund 15%; (2) CA Subdivision Fund 15%; and (3) CA Abatement Accounts fund 70%.

Now, there are 5 additional distributors, Teva, Allergan, Walgreens, Walmart, and CVS (Additional Distributors) and the opportunity to participate in additional nationwide settlement agreements3 (Additional Settlement Agreements) for the Additional Distributors role in the opioid epidemic.

California and its cities and counties stand to receive up to $1.8 billion for substance use prevention, harm reduction, treatment, and recovery. This is in addition to the up to $2.2 billion California is expected to receive from the Distributors and the Janssen settlements. Payment timeframes vary by settlement and can last up to 15 years. The more cities and counties that join, the more the defendants will pay California and participating cities and counties.

California may receive up to $1.8 billion from the Additional Distributors Settlement to be paid over 15 years. The funds are divided in three funds: (1) the state fund 15%; (2) CA Subdivision Fund 15%; and (3) CA Abatement Accounts fund 70%.

DISCUSSION
Each city and county within California with a population greater than 10,000 is eligible to receive funds and must decide whether to participate in the Additional Settlement Agreements. The more subdivisions that participate, the greater the amount of funds that will flow to California and participating subdivisions.

If the City joins the Additional Settlement Agreements, it can expected to receive its abatement percentage share, which is .002% of the CA Abatement Accounts Fund per Appendix 1 to the Proposed California State – Subdivision Agreements. We understand that this may equate to a total of approximately $24,200 for the City. This percentage is based on nationally available federal data on opioid use disorder, overdose deaths, and opioid shipments into California.

If the City opts in to the Additional Settlement Agreements, it must release it claims against the opioid distributors and manufacturers that are participating in the Additional Settlement Agreements. The City will then receive the amount noted above, which will be paid to the County over the next 5 years - 15 years depending on the Settlement, unless the City chooses direct payment. The City may decide to elect direct payment at any time. If the City receives direct payment it is obligated to report on the use of the funds, which must be used primarily for opioid abatement. The deadline to join the Settlements is April 18, 2023.

If the City does not opt in to the Additional Settlement Agreements, the City’s share will go to the State, but the total amount the State receives may be reduced since it is based on 3 Additional Distributor Settlement Agreements and State Subdivision Agreements - https://oag.ca.gov/opioids
3 participating cities and counties. By not opting in, the City preserves the ability to litigate against the opioid distributors and manufacturers.

Agenda Item: 9(a)
1 AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: Ron Bernal, Interim City Manager
DATE: April 4, 2023
SUBJECT: Adopt a Resolution Authorizing the City to Amend the Installation Agreement with Climatec to Initiate Phase 2 of the Comprehensive Infrastructure Renewal and General Fund Savings Program, and Find the Amendment to be Exempt from the California Environmental Quality Act ___________________________________________________________________________

RECOMMENDATION
It is recommended that the Council conduct a Public Hearing and adopt a resolution to amend the Installation Agreement with Climatec to initiate Phase 2, approve the implementation of the Comprehensive Infrastructure Renewal and General Fund Savings Program, and find the amendment to the Agreement to be exempt from the California Environmental Quality Act.

BACKGROUND
The City of Clayton has deeper infrastructure needs and sustainability goals than the current budget can accommodate. These infrastructure needs include heating, ventilation and air conditioning (HVAC) units over 25 years old; old lighting systems throughout its public buildings and facilities; inefficient & non-standardized City-owned streetlight systems; and continuous irrigation system line breaks and issues. In addition, PG&E is increasing utility rates by double-digits in the next three years, and the California Public Utilities Commission (CPUC) approved the detrimental modifications to Net-Energy-Metering (NEM 2.0) Guidelines set to take effect on April 15, 2023. Currently, the City spends over $675,000 annually on utility expenses alone.

DISCUSSION
On October 18, 2022, the City approved the execution of an Energy Services Contract with Climatec, LLC, regarding a Comprehensive Infrastructure Renewal & General Fund Savings Program to help fund and address aging infrastructure, reduce financial liabilities of utility expenditures and promote sustainability. Since approval of the contract, Climatec has 2 completed Phase 1 of the contract which included an infrastructure assessment, development of a scope of work and funding sources for key project objectives. Specifically, Climatec conducted site walks, developed a utility baseline, conducted preliminary design and engineering for the selected scope, and conducted multiple collaborative meetings with City staff and members of the City Council’s Energy Services & Infrastructure Renewal Ad Hoc Committee. In those discussions, the City’s potential funding paths were reviewed to support the implementation of the infrastructure improvements that the City has selected to include in their program. The comprehensive program was developed to incorporate the following scope elements:
• Solar Photovoltaic (PV) System within the Maintenance Building parking lot to shade City and Police vehicles and provide electrical offset of all adjacent City-owned sites including the Maintenance Building, City Hall, and the Clayton Community Library.

With the Solar PV System, the complex is projected to be Net Zero Energy. • New light-emitting diode (LED) lights on City-owned streetlights to improve light levels, reduce ongoing third-party contractor costs, reduce energy consumption and provide standardization of lighting color.
• New LED interior, exterior, and park lighting for improved light levels, reduction of ongoing operational expenditures, and reduced energy consumption. • New High-Efficiency HVAC systems at Endeavor Hall, the Library and the Maintenance Building.
• Building Automation System modernizations at the Library, City Hall, and Maintenance Building to improve comfort, reduce ongoing third-party contractor costs, reduce energy consumption and improve staff efficiency. • Electric Vehicle (EV) charging stations at the Library to promote City sustainability. • New Irrigation Control System at Clayton Community Park & Stranahan Park, as well as master valve / flow meters installations at Clayton Community Park, to prevent unnecessary water loss upon pipe breaks. The systems will also improve staff efficiency and reduce water consumption.

The fixed turnkey cost of the program is $2,049,083 and includes all project development, county permitting, design, engineering, and implementation costs. Total savings are projected to be $4,735,375 over the life of the new equipment.

On March 21, 2023, the City Council authorized staff and Climatec to submit an application to the California Energy Commission (CEC) for a 1% energy efficiency loan of up to $2 Million through the first-come, first-serve ECAA (Energy Conservation Assistance Act) program. Shortly after receiving Council authorization, Climatec and staff submitted the required documentation to the CEC for review of the application in the amount of $1,902,113. This path would require $146,970 from City funds, pending CEC approval of the final loan amount. As a back-up option, the City has also requested proposals from third party financiers and lenders for the program. The City has the ability to select the lender with 3 the most favorable terms and enter into a rate lock (without financial risk) while the CEC completes its review of the application and hearing for loan approval. Additional City funds may be needed for this option, depending on lender requirements.

Lastly, Climatec will assist the City with acquiring financial incentives from the Federal Government Inflation Reduction Act’s (IRA) Direct Pay program for the Solar PV System.

Further direction is forthcoming from the Federal Government; however, the financial incentive could be between 6% and 60% of the City’s initial qualified investment. A conservative estimate of the IRA potential would be 25%-30%, equating to approximately $215,000. The IRA funding would be a refund to the City post-implementation of the Solar PV System. Since this funding is not guaranteed, these potential savings have not been calculated into the total project lifecycle cost savings.

In summary, key program benefits include:
• Providing the City’s first Net Zero Energy buildings; • Providing environmental benefits and greenhouse gas emission reductions; and • Grandfathering the City within the existing, financially beneficial Solar PV Net Energy Metering (NEM 2.0) program through PG&E for City Hall, the Library, and the Maintenance Building.

Once funding has been identified and secured, the project implementation phase would begin.

Project completion is estimated to take 24 months.

FISCAL IMPACTS
The total infrastructure improvement cost is $2,049,083. The total lifecycle savings is $4,735,375. Depending on how the City Council chooses to fund the project, the net savings to the General Fund for years 1 through 5 will range from approximately $230,000 to $916,000 for this five-year period. Also, depending on lending institution approvals, project financing may come via a 1% CEC ECAA revolving fund loan, municipal third-party financing, and/or the City’s American Rescue Plan Act (ARPA) or Reserve funds.

ATTACHMENTS
Attachment 1: Resolution including Exhibit A
Attachment 2: Installation Agreement
Attachment 3: Amendment 1 to Installation Agreement
Attachment 4: Energy Audit Report for CEC ECAA Loan
Attachment 5: City of Clayton/Climatec PowerPoint Presentation Attachment 6: Public Hearing Notice March 21, 2023
Resolution No.____-2023 Page 1 of 4
RESOLUTION NO. ___-2023

RESOLUTION APPROVING AN AMENDMENT TO THE ENERGY

SERVICES AGREEMENT WITH CLIMATEC LLC TO IMPLEMENT

CERTAIN ENERGY CONSERVATION MEASURES UNDER
CALIFORNIA GOVERNMENT CODE SECTION 4217.10 ET SEQ.,

AUTHORIZE THE CITY MANAGER TO EXECUTE THE AMENDMENT,

ADOPT FINDINGS IN ACCORDANCE WITH CALIFORNIA
GOVERNMENT CODE SECTION 4217.12, AND FIND IT EXEMPT FROM CEQA

THE CITY COUNCIL
City of Clayton, California
WHEREAS, it is the policy of the State of California and the intent of the State Legislature to promote all feasible means of energy conservation and all feasible uses of alternative energy supply sources.

WHEREAS, California Government Code Section 4217.10 et seq. authorizes a public agency to utilize any procurement process to contract for energy services if its governing body determines, at a regularly scheduled public hearing, public notice of which is given at least two weeks in advance, that the anticipated cost to the agency for the energy services project will be less than the anticipated marginal cost to the agency of electrical energy that would have been consumed by the agency in the absence of the energy services contract.

WHEREAS, the City of Clayton (“City”) desires to reduce the steadily rising costs of meeting the energy needs at its facilities.

WHEREAS, the City entered into an energy services agreement and related contract documents (“Energy Services Agreement”) with Climatec, LLC (“Contractor”), pursuant to which Contractor agreed to perform a comprehensive energy analysis (“Phase 1”) and implement certain renewable energy generation and energy management systems (“Phase 2”) (collectively, “Project”).

WHEREAS, under Phase 1 of the Project, Contractor provided the City with an energy savings assessment showing the benefits of implementing certain energy conservation and alternative energy supply measures through the installation of the Project (“Analysis”).

WHEREAS, the Analysis includes data showing that the anticipated cost to the City for the Project will be less than the anticipated cost to the City of electrical or other energy that would have been consumed by the City in the absence of the Project and is attached hereto Exhibit “A”.

Attachment 1
Resolution No.____-2023 Page 2 of 4
WHEREAS, Phase 2 of the Project will involve Contractor designing, constructing and installing the energy conservation and alternative energy supply measures identified in the Analysis and agreed to by the City as part of Phase 1 of the Project.

WHEREAS, the City negotiated an amendment with Contractor to incorporate the Phase 2 scope of work into the Energy Services Agreement (the “Amendment”).

WHEREAS, a notice of public hearing scheduled for April 4, 2023, was published on March 21, 2023 as required by California Government Code §4217.12.

WHEREAS, pursuant to Government Code section 4217.12 and, based on, among other things, the Amendment and the Analysis, the anticipated cost to the City for energy or conservation services provided by the Project under the Amendment, will be less than the anticipated marginal cost to the City of energy that would have been consumed in the absence of the Project.

WHEREAS, the Project is hereby found to be exempt from the requirements of CEQA on multiple grounds, each of which is independently sufficient to exempt the whole of the Project from CEQA, including:

The Project is exempt from CEQA under a Class 1 categorical exemption (14 C.C.R. § 15301) because it involves the minor alteration of existing facilities with improvements that would lead to negligible or no expansion of use beyond the use existing at this time.

In all, the Project would result in net environmental benefits by reducing traditional electrical energy consumption of the City. Therefore, the Project would be exempt under a Class 1 exemption.

The Project is also exempt from CEQA under CEQA section 15303 (new construction or conversion of small structures) and CEQA section 15061 (common sense exemption) because the Project involves installation of energy efficient fixtures and improvements at City owned facilities that will benefit the environment by creating more energy efficient facilities.

The Project is also exempt from CEQA because it involves the construction of minor structures accessory to existing facilities. 14 C.C.R. § 15311. As explained above, the Project involves installation of energy efficient fixtures and improvements at City owned facilities.

None of the exceptions to the categorical exemptions apply. 14 C.C.R. § 15300.2.

Specifically, the Project is not located in a particularly sensitive environment. The improvements will be installed on existing structures in developed areas. The cumulative impact of successive projects of this same type in the same place over time would not be significant because the facilities are limited in size. As explained above, the Project involves installation of energy efficient fixtures and improvements at City owned facilities.

These types of improvements are not unusual. Moreover, the building impacted by the Project is not located within an officially designated state scenic highway. Thus, the Project would not have an impact in this regard. Similarly, the proposed improvements Resolution No.____-2023 Page 3 of 4
are not located on sites designated pursuant to Government Code section 65962.5.

Finally, the Project does not involve any improvements, modifications, or other changes to a historical resource. Therefore, none of the circumstances outlined in Title 14, California Code of Regulations, section 15300.2 apply.

NOW THEREFORE, BE IT RESOLVED, the City Council of Clayton does determine the foregoing recitals are true and correct and herby authorizes the City Manager to proceed with Phase 2 of the Project and enter into in the Amendment in the amount of $2,049,083, which may be changed from time to time by adopted resolution of the City Council.

PASSED, APPROVED and ADOPTED by the City Council of Clayton, California at a regular public meeting thereof held on the day of , 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

THE CITY COUNCIL OF CLAYTON, CA
___________________________________
Jeff Wan, Mayor
ATTEST:
_________________________________
Janet Calderon, City Clerk
Resolution No.____-2023 Page 4 of 4
EXHIBIT “A”
[INSERT COPY OF ANALYSIS]

ALL INCLUDED CONTENTS PRODUCED BY CLIMATEC ARE AGREED TO BE PROPRIETARY AND CONFIDENTIAL

AND NOT TO BE SHARED WITH ANY NON-CITY PERSONNEL

CITY OF CLAYTON

PROGRAM SUMMARY
EXHIBIT A 4/4/2023

SCOPE OF WORK SUMMARY
 New LED Street Lighting (City Owned Street Lights) Citywide  New Interior LED Lighting at 6 Sites
 New Exterior LED Lighting at 5 Sites
 New Exterior Building/ Pathway LED Lighting at Grove Park  New Occupancy Sensors at 2 Sites
 Smart, Weather-Based Irrigation Control System at 2 Sites  New Master Valve/ Flow Meter at Clayton Community Park  Perform Water Utility/ Rate Study Citywide
 New High Efficiency HVAC Unit at 2 Sites
 New High Efficiency Furnace at City Maintenance Facility  New High Efficiency Fan Coil Unit at Library
 New JCI BAS at 2 Sites
 Software Modification, Reprogram, and Training at BAS City Hall  Solar PV Parking Shade Structure
 New Level III Electric Vehicle (EV) Charging Stations at Library

FINANCIAL SUMMARY
Total Infrastructure Improvements ................................................... $ 2,049,083 Lifecycle Savings ........................................................................... $ 4,735,375 Attachment 2

Attachment 3

LOS ANGELES | RIVERSIDE | SAN DIEGO | BAY AREA | CLIMATEC.COM

ENERGY AUDIT REPORT
ENERGY CONSERVATION ASSISTANCE ACT (PON-22-002)

THE CITY OF CLAYTON
6000 Heritage Trail, Clayton, CA 94517
Attachment 4

TABLE OF CONTENTS

1.0 PROJECT OVERVIEW .................................................. 1

1.1 SUMMARY OF ENERGY EFFICIENCY PROJECTS ........................ 3

1.2 UTILITY BASELINE ANALYSIS .................................................... 4

2.0 SITE OVERVIEW ............................................................ 5 CITY HALL ..................................................................................... 5 SITE DESCRIPTION ............................................................... 5 RECOMMENDATIONS ............................................................ 6 MAINTENANCE SHOP .................................................................... 7 SITE DESCRIPTION ............................................................... 7 RECOMMENDATIONS ............................................................ 8 CLAYTON COMMUNITY LIBRARY .................................................... 9 SITE DESCRIPTION ............................................................... 9 RECOMMENDATIONS .......................................................... 10 ENDEAVOR HALL ..........................................................................11 SITE DESCRIPTION ............................................................. 11 RECOMMENDATIONS .......................................................... 12 CLAYTON COMMUNITY PARK .......................................................13 SITE DESCRIPTION ............................................................. 13 RECOMMENDATIONS .......................................................... 14 THE GROVE PARK ...............................................................15 SITE DESCRIPTION ............................................................. 15 RECOMMENDATIONS .......................................................... 16 CITY-OWNED OUTDOOR LIGHTING .............................................17 SITE DESCRIPTION ............................................................. 17 RECOMMENDATIONS .......................................................... 18 ANTICIPATED PROJECT SCHEDULE ................................................19

3.0 TECHNICAL APPENDIX .............................................20 Energy Audit Report
The City of Clayton
1 | Page

1.0 PROJECT OVERVIEW
The City of Clayton requested that Climatec perform an energy audit of City-owned facilities, parks, and streetlights. There are (4) city buildings, (2) parks, and over (400) City-owned streetlights included in this report:

Facility / Site Address / Location
City Hall 6000 Heritage Trail, Clayton, CA 94517
Maintenance Shop 5901 Heritage Trail, Clayton, CA 94517 Clayton Community Library 6125 Clayton Road, Clayton, CA 94517 Endeavor Hall 6008 Center Street, Clayton, CA 94517
Clayton Community Park 7411 Marsh Creek Road, Clayton, CA 94517 Grove Park 6100 Main Street, Clayton, CA 94517
Outdoor Lights (B-1) City-wide
Streetlights (LS-2) City-wide
Over the past few months, Climatec has gathered utility billings, performed a baseline utility analysis, assessed the City of Clayton’s heating, cooling, ventilation, lighting, and building automation systems, prepared a summary of existing conditions and developed a set of energy conservation measures (ECMs) recommended for implementation. Sources for the data gathered during the energy audit process included:

Monthly electric and gas utility billing data
Public data relating to facility use and issues
Actual field inventory
City staff interviews
The four city buildings surveyed encompass over 50,000 square feet of energy-consuming space.

The majority of the heating and cooling equipment throughout the City is newer and well maintained, though there are several units that are past their useful life. Equipment types vary by site but consist of central plant equipment, including an air-cooled chiller, air-cooled condensing unit, Air Handling Units (AHUs), boilers, pumps, and Variable Air Volume (VAV) terminal boxes at the City Hall and Library. HVAC equipment at these sites is controlled via Johnson Control Building Automation System (BAS). The mechanical systems at the Maintenance Shop and Endeavor Hall include a heating only furnace and split system heat pumps. HVAC is controlled at these sites via standalone programmable thermostats.

Interior lighting systems in city buildings consist of primarily T8 lamps with electronic ballasts and recessed compact fluorescent (CF) can lighting. Interior lighting is controlled primarily through wall switches. Exterior area lighting systems consist primarily of high intensity discharge (HID), incandescent, and CFL fixtures. HID systems are no longer as efficient as newer technologies, specifically LEDs, and do not last as long or produce the quality of light that today’s more energy efficient LED systems produce. Exterior lighting fixtures typically operate from dusk to dawn and are controlled by a combination of time clocks, photocells, and manual switches.

Energy Audit Report
The City of Clayton
2 | Page
The City of Clayton has replaced approximately 30% of city-owned streetlights to high efficiency LED systems. The remaining city-owned streetlights consist of HID systems with high pressure sodium (HPS) lamps.

The city buildings, parks, and streetlighting included in the survey receive electric power and natural gas through Pacific Gas and Electric (PG&E). The utility baseline analysis that follows illustrates that the City of Clayton spent over $289,000 on electricity and over $33,000 on natural gas for the 12-month reporting period ending in June 2022.

Energy Audit Report
The City of Clayton
3 | Page

1.1 SUMMARY OF ENERGY EFFICIENCY PROJECTS
Project Measure / Location
Measure
Installation
Cost ($)*
Peak
Demand
Savings
(kW)
Annual
Electric
Savings
(kWh)
Annual
Natural Gas
Savings
(therms)
Annual
Other
Energy
Savings
(specify
units)
Measure
Annual
Cost
Savings ($)
EUL (years)***
(EUL Considered
for 1% Loans will
be lesser of
actual EUL or 17
Years)
Measure
Cost
Savings
over EUL ($)
Measure
Payback
(years)
GhG
Emissions
Reduction
Controls - City Hall - Retro-commission existing JCI BAS $29,004 0.0 5,341 631 $2,930 15.0 $43,950 9.9 0.9 Controls - Library - Install new JCI BAS $183,710 0.0 7,413 714 $4,022 15.0 $60,330 45.7 1.3 Controls - Maintenance Shop - Install New JCI BAS $8,791 0.0 0 $0 15.0 $0 #DIV/0! 0.0 HVAC - Library - Install (1) New Air Handling Unit $80,564 0.0 0 $0 15.0 $0 #DIV/0! 0.0 HVAC - Library - Install (1) New Package Heat Pump $25,923 0.0 284 -1 $80 15.0 $1,200 324.0 0.0 HVAC - Endeavor Hall - Install (2) New Split System Heat Pumps $87,184 0.0 -1,409 457 $647 15.0 $9,705 134.8 -0.2 HVAC - Maintenance Shop - Install (1) New High Efficiency Furnace $14,629 0.0 0 $0 15.0 $0 #DIV/0! 0.0 Lighting - City Hall - Interior & Exterior $39,985 5.1 17,315 $4,411 15.0 $66,168 9.1 3.0 Lighting - City Hall - Occupancy Sensors $11,198 0.0 693 $150 8.0 $1,201 74.6 0.1 Lighting - Library - Interior & Exterior $95,175 15.4 39,854 $11,697 15.0 $175,459 8.1 6.9 Lighting - Library - Occupancy Sensors $7,173 0.0 478 $119 8.0 $955 60.1 0.1 Lighting - Endeavor Hall - Interior & Exterior $8,358 0.9 1,429 $424 15.0 $6,363 19.7 0.2 Lighting - Maintenance Shop - Interior & Exterior $23,807 2.8 7,437 $1,895 15.0 $28,418 12.6 1.3 Lighting - Maintenance Shop - Occupancy Sensors $709 0.0 650 $141 8.0 $1,126 5.0 0.1 Lighting - Clayton Community Park - Interior $2,341 0.5 228 $71 15.0 $1,062 33.1 0.0 Lighting - Grove Park - Interior & Exterior $11,763 2.8 10,889 $3,403 15.0 $51,038 3.5 1.9 Lighting - Outdoor/ Street Lighting - Exterior $267,998 67.9 278,251 $58,835 15.0 $882,520 4.6 47.9 EV Charging - Library - Install (1) Level III EV Charger $155,147 0.0 0 $0 15.0 $0 #DIV/0! 0.0 Solar PV - Maintenance Shop - Install (1) Carport Shade Structure $848,654 0.0 211,404 $48,261 17.0 $820,437 17.6 36.4 TOTAL $1,902,113 95.14 580,257 1,801 0 $ 137,085 $2,149,930 13.9 100.0 Energy Audit Report
The City of Clayton
4 | Page

1.2 UTILITY BASELINE ANALYSIS
Baseline Period: 7/1/2021 through 6/30/2022 Electric (PG&E) Natural Gas (PG&E) Site Name Address
Square
Footage
Dollars
Electric kWh
$ /
kWh
Dollars
Gas Therms
$ /
Therms
Total
Energy
Cost ($)
Energy
Intensity
($/ SF)
City Hall 6000 Heritage Trail, Clayton CA 94517 34,765* $33,407* 131,134 $0.25 $20,441* 8,220 $2.49 $53,848 $1.55 Endeavor Hall 6008 Center St, Clayton CA 94517 2,561 $2,052 6,914 $0.30 $371 159 $2.33 $2,422 $0.95 Library 6125 Clayton Rd, Clayton CA 94517 17,830 $43,935 149,689 $0.29 $12,686 4,907 $2.59 $56,621 $3.18 Clayton Community
Park
7411 Marsh Creek Rd, Clayton CA
94517 N/A $2,797 9,012 $0.31 $0 0 $2,797 $0.00
The Grove Park 6100 Main St, Clayton CA 94517 N/A $3,511 11,236 $0.31 $0 0 $3,511 $0.00 Streetlights LS-1 Various N/A $85,680 157,698 $0.54 $0 0 $85,680 $0.00 Streetlights LS-2 Various NA $74,839 372,182 $0.20 $0 0 $74,839 $0.00 Streetlights TC-1 Various N/A $10,092 36,246 $0.28 $0 0 $10,092 $0.00 Outdoor Lights B-1 Various NA $11,797 36,231 $0.33 $0 0 $11,797 $0.00 Irrigation Various N/A $10,979 27,841 $0.39 $0 0 $10,979 $0.00 Oakhurst Fountain Various NA $10,118 36,758 $0.28 $0 0 $10,118 $0.00 Project Totals 55,156 $289,204 974,940 $0.30 $33,498 13,286 $2.52 $322,702 $6.46 *Note: Includes Maintenance Shop – no independent electric/ gas meters.

Energy Audit Report
The City of Clayton
5 | Page

2.0 SITE OVERVIEW

CITY HALL

SITE DESCRIPTION
The City Hall consists of 29,565 square feet of energy consuming space. The facility receives electric power and natural gas service through Pacific Gas & Electric. Refer to the Utilities tab of the Technical Appendix for details on facility baseline energy use and benchmarking information.

HVAC and Control Systems
The building is conditioned primarily by a central plant consisting of one boiler, one AHU tied to an air-cooled condensing unit feeding twenty VAV terminal boxes. The total building load is 30 tons. HVAC throughout the building is controlled via a Johnson Controls Building Automation System (BAS).

Lighting Systems
Interior lighting, in the majority of spaces, are 32-Watt linear fluorescent lighting systems with electronic ballasts, as well as recessed CF can fixtures, incandescent, and LED lighting systems in select locations. Interior lighting is controlled via manual wall switches. Exterior area lighting system are building and pole mounted with HID and CF lamps, as well as a few LED, controlled by a combination of automatic controls such as time clocks and photocells and typically operate from dusk to dawn. Refer to the Technical Appendix for a detailed list of all installed lighting systems.

Occupancy Schedules
Typical occupancy schedules are 9:00am – 5:00pm, Monday through Friday. Select areas may have varying schedules based on special activities and events.

SQFT: 29,565
Rate Schedule:
o B10S (Elec.)
o G-NR1 (Natural Gas)
Annual Energy Usage:
o $33,407
o 131,134 kWh
o 8,220 Therms
Energy Intensity
o Cost: $1.55/sqft
o EUI: 43 kBtu/sqft
Energy Audit Report
The City of Clayton
6 | Page

RECOMMENDATIONS
Controls
Retrocommission existing Johnson Controls BAS HVAC control system. This scope includes verifying sequence of operations, verifying valve and damper actuators are operating correctly, verifying failures and alarms are reporting correctly, reprogramming equipment occupied/ unoccupied schedules and set points according to facility occupied hours, providing system start-up and report, and providing BAS training to City personnel.

Lighting
Retrofit existing interior linear fluorescent, CF, incandescent, and LED lighting systems with new high efficiency LED lighting systems. Occupancy sensors and/or dimming switches will be included on fixtures in select locations. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Retrofit existing exterior CF, HID, and LED lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Energy Audit Report
The City of Clayton
7 | Page

MAINTENANCE SHOP

SITE DESCRIPTION
The Maintenance Shop consists of 5,200 square feet of energy consuming space. The facility receives electric power and natural gas service through Pacific Gas & Electric. The utilities serving the Maintenance Shop are fed from the City Hall with no independent meters at this site. Refer to the Utilities tab of the Technical Appendix for details on facility baseline energy use and benchmarking information.

HVAC and Control Systems
The Maintenance Administration office is conditioned by one 75 MBH horizontal furnace, while the rest of the maintenance bay remains unconditioned. HVAC is controlled by a standalone programmable thermostat.

Lighting Systems
Lighting, in the majority of spaces, are 32-Watt linear fluorescent lighting systems with electronic ballasts, with HID lighting serving the garage bays. Control is provided by manual wall switch controls. Exterior area lighting systems are building and pole mounted, with HID and LED lamps. Exterior lighting systems are controlled by a combination of automatic controls such as time clocks and photocells and typically operate from dusk to dawn. Refer to the Technical Appendix for a detailed list of all installed lighting systems.

Occupancy Schedules
Typical occupancy schedules are 7:00am – 3:00pm, Monday through Friday. Select areas may have varying schedules based on special activities and events.

SQFT: 5,200
Rate Schedule:
o See City Hall
Annual Energy Usage:
o See City Hall
Energy Intensity
o See City Hall
Energy Audit Report
The City of Clayton
8 | Page

RECOMMENDATIONS
Controls
Replace existing standalone thermostat with new Johnson Controls BAS. This scope includes removal of existing thermostat, installation of new controls equipment to be connected to the new HVAC unit, engineering, programming, commissioning, start-up and report, and integration to City’s existing BAS to allow City staff to access control system remotely for adjustments to equipment setpoints and schedules.

Lighting
Retrofit existing interior linear fluorescent and HID lighting systems with new high efficiency LED lighting systems. Fixture mounted occupancy sensors will be included in select locations. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Retrofit existing exterior building and pole mounted HID lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Mechanical
Replace one (1) horizontal furnace with new high efficiency units of similar size and capacity. The scope includes removal of existing units, necessary duct modifications, disconnection/reconnection of the existing electrical and gas lines, installation of new NEMA electrical disconnects, condensate connections, start-up/testing of the new units, and connection to the new HVAC control system. Please refer to the HVAC Replacement Inventory for equipment size and location.

Renewables
Install new carport structure solar photovoltaic system to connect to the City’s existing electrical meter. The PV structure will be installed at the Maintenance Shop parking lot to provide shading for the police vehicles and the point of interconnection will be at Clayton Community Library. This system will provide electrical energy offset for the Maintenance Shop, City Hall, and Clayton Community Library. Please refer to the Technical Appendix for additional information on scope, locations, system sizing, and point of interconnection.

Energy Audit Report
The City of Clayton
9 | Page

CLAYTON COMMUNITY LIBRARY

SITE DESCRIPTION
The Clayton Community Library consists of approximately 18,000 square feet of energy consuming space. The facility receives electric power and natural gas service through Pacific Gas & Electric. Refer to the Utilities tab of the Technical Appendix for details on facility baseline energy use and benchmarking information.

HVAC and Control Systems
The building is conditioned by a central plant consisting of one air cooled chiller, one boiler, and three AHUs tied to VAV terminal boxes. Additionally, there is one separate reading room which is conditioned by one rooftop packaged heat pump for a total building load of 71.5 tons. HVAC is controlled primarily via a Johnson Controls BAS with the reading room being controlled independently via a programmable thermostat.

Lighting Systems
Lighting, in the majority of spaces, are 25-Watt, 32-Watt, or 58-Watt linear fluorescent lighting systems with electronic ballasts in addition to CF, incandescent and LED lighting systems. Control is provided by manual wall switch controls. Exterior area lighting systems are building and pole mounted with HID and CF lamps, along with linear fluorescent lighting above walkway tunnel. Exterior lighting systems are controlled by a combination of automatic controls such as time clocks and photocells and typically operate from dusk to dawn. Refer to the Technical Appendix for a detailed list of all installed lighting systems.

Occupancy Schedules
Typical occupancy schedules are 12:00pm – 8:00pm on Tuesday, 10:00am – 6:00pm, Wednesday, Thursday, Friday, and Saturday. The Library is closed on Sunday and Monday.

Select areas may have varying schedules based on special activities and events.

SQFT: 17,830
Rate Schedule:
o B10S (Elec.)
o G-NR1 (Natural Gas)
Annual Energy Usage:
o $43,935
o 149,689 kWh
o 4,907 Therms
Energy Use Intensity
o Cost: $3.18/sqft
o EUI: 56 kBtu/sqft
Energy Audit Report
The City of Clayton
10 | Page

RECOMMENDATIONS
Controls
Replace existing BAS with new Johnson Controls BAS. This scope includes removal of existing thermostats, installation of new controls equipment (including new VAV controls and sensors), engineering, programming, commissioning, start-up and report, and integration to City’s existing BAS to allow City staff to access control system remotely for adjustments to equipment setpoints and schedules.

Lighting
Retrofit existing interior linear fluorescent, CF, incandescent, and LED lighting systems with new high efficiency LED lighting systems. Occupancy sensors and/or dimming switches will be included on fixtures in select locations Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Retrofit existing exterior building and pole mounted linear fluorescent, CF, and HID lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Mechanical
Replace one (1) Air Handling Unit with new high efficiency unit of similar size and capacity.

The scope includes removal of existing unit, proper disposal or containment of refrigerant, necessary duct modifications, disconnection/reconnection of the existing electrical and gas lines, installation of new NEMA electrical disconnects, condensate connections, startup/testing of the new units, and connection to the new HVAC control system. All equipment removed shall be disposed of per EPA guidelines. Please refer to the HVAC Replacement Inventory for equipment size and location.

Replace one (1) packaged heat pump unit with new high efficiency unit of similar size and capacity. The scope includes removal of existing units, proper disposal or containment of refrigerant, necessary duct/curb modifications, disconnection/reconnection of the existing electrical and gas lines, installation of new NEMA electrical disconnects, condensate connections, new economizer, start-up/testing of the new units, and connection to the new HVAC control system. All equipment removed shall be disposed of per EPA guidelines.

Please refer to the HVAC Replacement Inventory for equipment size and location.

Electric Vehicle (EV) Charging
Provide and install one (1) new dual-port, Level III EV charging station. Installation will include necessary parts and labor, concrete foundation and mounting stand, striping where required, start-up and testing of new equipment. New equipment will be connected to the existing electric meter. Please refer to the Technical Appendix for additional detail on charging station sizing, location, and point(s) of interconnection.

Energy Audit Report
The City of Clayton
11 | Page

ENDEAVOR HALL

SITE DESCRIPTION
Endeavor Hall consists of 2,561 square feet of conditioned space. The facility receives electric power and natural gas service through Pacific Gas & Electric. Refer to the Utilities tab of the Technical Appendix for details on facility baseline energy use and benchmarking information.

HVAC and Control Systems
The building is conditioned by two split system HVAC units. The system supplying conditioned air to the main assembly hall is twin 4-ton condensing units tied to one Reznor furnace. The other 4-ton split system heat pump unit serves the kitchen/ men’s and women’s restroom. The total building load is 12 tons. HVAC is controlled via programmable thermostats.

Lighting
Lighting throughout the building is a combination of 32-Watt linear fluorescent lighting systems with electronic ballasts and LED lighting systems in select locations. Control is provided by manual wall switch controls. Exterior area lighting systems are building mounted with CF and LED lamps. Exterior lighting systems are controlled by a combination of automatic controls such as time clocks and photocells and typically operate from dusk to dawn. Refer to the Technical Appendix for a detailed list of all installed lighting systems.

Occupancy Schedules
This building does not follow a typical occupancy schedule. The building is available for rent 8:00am – 10:00pm on Sunday, 8:00am – 10:00pm Monday through Friday, and 8:00am – 12:00am on Saturday.

BLDG SQFT: 2,561
Rate Schedule:
o B1 (Elec.)
o G-NR1 (Natural Gas)
Annual Energy Usage:
o $2,052
o 6,914 kWh
o 159 Therms
Energy Use Intensity
o Cost: $0.95/sqft
o EUI: 15 kBtu/sqft
Energy Audit Report
The City of Clayton
12 | Page

RECOMMENDATIONS
Lighting
Retrofit existing interior linear fluorescent and LED lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Retrofit existing exterior building mounted CF lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Mechanical
Replace existing HVAC units with two (2) new high efficiency units of similar size and capacity – the existing system with twin condensing units tied to one furnace will be replaced with a 7.5-ton split system unit. The scope includes removal of the existing unit, proper disposal or containment of refrigerant, necessary duct/curb modifications, disconnection/reconnection of the existing electrical lines, installation of a new NEMA electrical disconnect, condensate connections, start-up/testing of the new unit, and connection to the HVAC control system. All equipment removed shall be disposed of per EPA guidelines. Please refer to the HVAC Replacement Inventory for equipment size and location.

Energy Audit Report
The City of Clayton
13 | Page

CLAYTON COMMUNITY PARK

SITE DESCRIPTION
Clayton Community Park is approximately 13.8 acres and is the largest park in the City.

The facility consists of two small unconditioned buildings with restrooms, concession area, and storage. The park has baseball fields, soccer fields, picnic areas, and playground equipment. The facility receives electric power through Pacific Gas & Electric. Refer to the Utilities tab of the Technical Appendix for details on facility baseline energy use and benchmarking information.

Lighting Systems
Lighting for the park restroom, concession, and storage rooms are 32-Watt linear fluorescent lighting systems with electronic ballasts. Control is provided by manual wall switch controls. Exterior area lighting systems are building and pole mounted with LED lamps. Exterior lighting systems are controlled by a combination of automatic controls such as time clocks and photocells and typically operate from dusk to dawn. Refer to the Technical Appendix for a detailed list of all installed lighting systems.

Occupancy Schedules
The park is open daily dawn – dusk, Sunday through Saturday. In additional to normal community park use, there are several baseball games played in the evening throughout the week and most of the day during the weekends throughout the late spring/summer.

13.8 acres
Rate Schedule:
o B1 (Elec.)
Annual Energy Usage:
o $2,797
o 9,012 kWh
Energy Audit Report
The City of Clayton
14 | Page

RECOMMENDATIONS
Lighting
Retrofit existing interior linear fluorescent lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Energy Audit Report
The City of Clayton
15 | Page

THE GROVE PARK

SITE DESCRIPTION
The Grove Park is approximately 1.08 acres and the newest public park in the City. The park is located in the historic part of downtown Clayton and features picnic areas, restrooms, and playground equipment. The facility receives electric power through Pacific Gas & Electric. Refer to the Utilities tab of the Technical Appendix for details on facility baseline energy use and benchmarking information.

Lighting Systems
Lighting for the park restroom is 32-Watt linear fluorescent lighting systems with electronic ballasts. Control is provided by manual wall switch controls. Exterior area lighting systems are building and pole mounted HID lighting. Exterior lighting systems are controlled by a combination of automatic controls such as time clocks and photocells and typically operate from dusk to dawn. Refer to the Technical Appendix for a detailed list of all installed lighting systems.

Occupancy Schedules
The park is open daily dawn – dusk, Sunday through Saturday. In additional to normal community park use, the City hosts Saturday Concerts in the Grove from the first of May through the first of November.

1.08 acres
Rate Schedule:
o B1 (Elec.)
Annual Energy Usage:
o $3,511
o 11,236 kWh
Energy Audit Report
The City of Clayton
16 | Page

RECOMMENDATIONS
Lighting
Retrofit existing interior linear fluorescent lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Retrofit existing exterior building and pole mounted HID lighting systems with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Energy Audit Report
The City of Clayton
17 | Page

CITY-OWNED OUTDOOR LIGHTING

SITE DESCRIPTION
The City has a total of 1,168 streetlights, of which 561 are on an LS-1 rate (PG&E owned) and 607 streetlights on LS-2 rate schedule (City-owned). The City has replaced approximately 30% of existing LS-2 lamps with LED over the past several years. There are a total of 436 LS-2 fixtures that have not yet been converted to LED; below is a table illustrating quantity by fixture type and size. The existing non-LED City-owned fixtures are all decorative and are a mixture of post-top acorn or lanterns as shown in above photos.

The City also has 36 pole mounted fixtures on a B-1 rate schedule. These fixtures are primarily high pressure sodium, post-top acorns, similar to the LS-2 fixtures, with the exception of one metal halide flood light serving a flag pole in Downtown Clayton.

The streetlights and outdoor lights are controlled via fixture mounted photocell, and operated from dusk – dawn, Sunday through Saturday. Refer to the Utilities tab of the Technical Appendix for details on facility baseline energy use and benchmarking information.

Type Wattage Quantity
Decorative - High Pressure Sodium 70 Watt 62
Decorative - High Pressure Sodium 100 Watt 4
Decorative - High Pressure Sodium 150 Watt 364
Decorative - High Pressure Sodium 200 Watt 2
Decorative - High Pressure Sodium 250 Watt 4
Rate Schedule & Qty:
o LS-2: 436
o B-1: 36
Annual Energy Usage:
o LS-2: $74,839
o LS-2: 372,182 kWh
o B-1: $11,797
o B-1: 36,231 kWh
Energy Audit Report
The City of Clayton
18 | Page

RECOMMENDATIONS
Lighting
Retrofit remaining (436) City-owned (LS-2) High Pressure Sodium streetlights with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Retrofit (35) High Pressure Sodium and (1) Metal Halide (B-1) outdoor lights with new high efficiency LED lighting systems. Please see the Lighting Detail Report in the Technical Appendix for detailed information on lighting scope, quantities, and locations.

Energy Audit Report
The City of Clayton
19 | Page

ANTICIPATED PROJECT SCHEDULE
Submission of ECAA 1% Loan Application Completed
Approval of ECAA 1% Loan Application May 2023
Project Implementation Begins June 2023
Lighting Installation Complete November 2023
Mechanical Installation Complete June 2024
EV Charging Installation Complete March 2024
Building Automation Installation Complete June 2024
Solar PV Installation Complete June 2024
Note: Actual completion dates will depend upon equipment lead times at order date, Contra Costa County approval durations, coordination with City schedules and PG&E approvals and coordination.

Energy Audit Report
The City of Clayton
20 | Page

3.0 TECHNICAL APPENDIX

1.) Utility Information
a. Utility Baseline Summary

2.) Lighting Systems
a. Lighting Detail Report and Savings Calculations
b. Lighting Equipment Data Sheets

3.) Mechanical and Building Automation
a. HVAC Replacement Inventory
b. HVAC Savings Calculations
c. Building Automation Savings Calculations
d. Proposed Mechanical Equipment Data Sheets

4.) Electric Vehicle Charging Station
a. EV Charging Station Equipment Data Sheet

5.) Solar PV
a. Solar PV Helioscope Report and Layout
b. Solar PV Savings Calculations
c. Solar PV Energy Toolbase Simulation Report
d. Solar PV Equipment Data Sheets
Comprehensive
Infrastructure Renewal
and General Fund
Savings Program
Council Consideration | April 4, 2023
Attachment 5
Aging
Infrastructure
Unfunded
Capital
Project
Priorities
Rising Utility
Costs
Lack of
Resources

PHASE I
STATUS
✓ Ad-Hoc Committee Program Update
✓ Engineering Site Assessments
✓ Utility Baseline Development
✓ Competitive Selection Process
✓ Verify Scope & Funding w/ Staff
✓ Council Approval of CEC Resolution
Council Consideration of the Amended Agreement
July 2021 – June 2022
Utility Annual Spend
Electric $289,204
Natural Gas $33,498
Water $366,641

TOTAL ANNUAL UTILITY SPEND
$689,343
Electric
42%
Natural Gas 5%
Water
53%

HVAC/BAS
Third-Party Expense
(2022)
Street Lighting Repair
Third-Party Expense
(2021 & 2022 average)
$37,090* $17,328
*Excludes equipment
HVAC & Building
Automation
Systems (BAS)
Water
Conservation
Solar PV Electric Vehicle
(EV) Charging
Street, Pathway,
& Building
Lighting
▪ The City still has several antiquated lighting
systems, which are inefficient and provide poor
light levels.
▪ City-owned streetlights vary in color due to
aged lighting systems and are not energy
efficient.
▪ LED modernization of street, pathway, and
building lighting systems will drastically reduce
energy consumption & enhance the
environment around the City.
▪ Occupancy sensors will be added to City Hall
& Library to further reduce energy
consumption by controlling lighting when
areas is unoccupied.
▪ City has a blend of irrigation controllers; networked & non-networked.
▪ Clayton Community Park is susceptible to major leaks
contributing to ongoing maintenance challenges
▪ New smart irrigation controllers to help
standardize throughout the City & provide
networked, remote control to improve staff
efficiency.
▪ Master valve flow meters will be integrated to
stop water flow when pipe breaks/leaks occur
at Clayton Community Park.
▪ The City has some HVAC units that are past useful life and in need of frequent maintenance.
▪ Aging systems are energy inefficient, compromise air quality and can be disruptive to services as units fail.
▪ The City has standardized on one BAS, however some sites still have older or no BAS at all.
▪ New high efficiency HVAC units at 2 sites will reduce operating expenditures, improve comfort & reduce maintenance burdens. ▪ Add new & retrocommission existing JCI BAS will provide more standardization and remote access for improved staff efficiency and comfort within the spaces.

New Level III EV charging station at the Library for City & public use to further promote sustainability.

▪ Solar PV located at the
maintenance building will provide
shade for police vehicles. The
solar PV structures are projected
to offset the site's electrical load
100% including Library, City Hall, &
Maintenance Facility creating a
Net Zero Energy (NZE) site.
▪ Solar PV columns will be equipped
with electrical outlets allowing
police vehicles to charge
electronic devices.

Net Zero
Energy
$2,049,083
Turnkey
Sustainability &
Infrastructure
Improvements
- American Rescue Plan
Act (ARPA) Funds
- CEC 1% ECAA Loan
- Tax Exempt Lease
Purchase (TELP)
Funding Sources
$ 4,735,375
Lifecycle Savings
Improvement/ Sustainability Measure Turnkey Budget
LED Street, Pathway, & Building Lighting $ 468,507
Irrigation Modernizations & Water Rate Study $ 146,970
HVAC/ BAS $ 429,805
Solar PV Carport Structures $ 848,654
Electric Vehicle Charging Stations $ 155,147
Maximum Capital Flexibility
Turnkey Price
Capital
Contribution
(ARPA/ Reserves)
Financing Amount Financing
Source
Lifecycle
Savings 1,2,3
Net General Fund
Relief (Years 1-5)
$ 2,049,083 $ 146,970 $ 1,902,113 CEC $ 4,735,375 $ 230,692 $ 2,049,083 $ 400,000 $ 1,649,083 Muni Lease $ 4,735,375 $ 135,614 $ 2,049,083 $ 400,000 $ 1,649,083 CEC $ 4,735,375 $ 321,939 Maximum General Fund Relief
Turnkey Price
Capital
Contribution
(ARPA/ Reserves)
Financing Amount Financing
Source
Lifecycle Savings
1,2,3
Net General Fund
Relief (Years 1-5)
$ 2,049,083 $ 2,049,083 $ - N/A $ 4,735,375 $ 916,630
¹ Excludes Capital Cost Avoidance, includes energy (gas/electric) & water savings and financing costs ² Savings over the life of the equipment (Solar PV = 30 years, energy efficiency = 15 years) ³ Excludes 3rd party contractor savings, Federal IRA benefits and staff efficiency improvements 91 Cars removed
from the roadway
82 Clayton
homes powered
7,034
Trees preserved
from deforestation
47,868
Gallons of
gasoline saved
Mitigate Rising Utility &
Maintenance Costs
Staff &
Operational
Efficiency
Promote
Environmental
Stewardship
Hedge Against
Construction Price Inflation
(~10-15% annually)
NEM 2.0 Solar
Savings
Remedy nearly $2.1M in
Deferred Maintenance &
Sustainability
Improvements
INFORM
▪ Press Releases
▪ Ribbon Cutting
▪ Dedications
▪ Ground-Breaking
▪ Sustainability
Website

INVOLVE INSPIRE
▪ City Events
▪ Local Fairs
▪ Walking Tours with
Local Leaders &
Community
Members
Clayton’s initiatives
toward energy
efficiency can inspire
the entire community
to take steps to be
more energy efficient
Council
Consideration
Tonight
Submit NEM 2.0
Applications by
4/14/2023
Anticipated
Approval of
ECAA 1%
Loan
Application
May 2023
Project
Implementation
Begins
June 2023
Lighting Installation
Complete
November 2023
EV Charging
Installation
Complete
March 2024
Mechanical
Installation
Complete
June 2024
Building
Automation
Installation
Complete
June 2024
Solar PV
Installation
Complete
June 2024
38044.03101\41096608.1
City of Clayton Public Hearing Notice
4217.10 et seq. Energy Services Contract

NOTICE OF PUBLIC HEARING

BEFORE THE CITY COUNCIL OF THE CITY OF CLAYTON

TO CONSIDER APPROVAL OF ENERGY SERVICE CONTRACT

WITH CLIMATEC LLC
NOTICE IS HEREBY GIVEN that the City Council of the City of Clayton (“City”) will hold a public hearing on April 4, 2023, at 7:00 p.m., or as soon thereafter as practicable, at Hoyer Hall, Clayton Community Library 6125 Clayton Road, Clayton, CA 94517 to consider entering into an energy service contract with Climatec LLC for the installation of energy efficiency upgrades and renewable technologies at various City-owned sites throughout the City. At the public hearing, the City Council will receive public comments and consider adoption of a resolution making findings required by Government Code section 4217.12 regarding anticipated energy cost savings and other benefits the City will receive by entering into the energy service contract. The resolution and supporting documents will be included with the City Council’s regular public agenda available for review on the City’s website, http://claytonca.gov, 72 hours prior to the meeting. The hearing will be open to the public, and all interested persons in attendance will have the opportunity to be heard.

Attachment 6
[Type here] Agenda Item: 10(a)

STAFF REPORT
TO: HONORABLE COMMITTEE MEMBERS
FROM: ANGELINE LOEFFLER, FINANCE DIRECTOR

NITISH SHARMA, FINANCE CONSULTANT
DATE: APRIL 4, 2023
SUBJECT: THE FISCAL YEAR 2022-23 MID-YEAR BUDGET UPDATE

RECOMMENDATION
Following staff report and presentation, staff recommends that the Committee receive the presentation on the FY2022/23 Mid-year Budget Review, provide feedback to staff.

BACKGROUND
On June 21, 2022, the City Council adopted a balanced budget for the Fiscal Year 2022-23. It is the City’s practice that at the end of the first half of the year, the City reports to the City Council on the status of the revenues and expenses along with any recommendations for adjustments in the remainder of the budget period.

Budget planning intends to resource and allocate the available funding for the period covered and, if possible, to address future economic contingencies. The expectation is that mid-year budget adjustments will address changing conditions unknown from the budget adoption period and adjust for anticipated economic trends.

DISCUSSION
The analysis below addresses the operating funds for Fiscal Year (FY) 2022-23, including the General Fund, and American Rescue Plan Act.

General Fund
General Fund Revenues
The total General Fund revenue budget adopted for the Fiscal Year 2022-23 was $5.4 million excluding funds from the American Recovery Plan Act (ARPA) funds of approximately $1.7 million while the appropriations budget, including capital improvement budget, was $5.4 million. It is important to note that the original projection for the General Fund was a net deficit of $127,542. The City Council approved several adjustments to allocate funds from the Pandemic Reserve Fund Subject: FY2022/23 Mid-Year Budget Review
Date: April 4, 2023

(ARPA), as illustrated in Table 1 below to approve a balanced General Fund Budget for the Fiscal Year 2022-23.

Table 1
Fiscal Year 2022-23 Budget Adoption
Projected Surplus (Deficit) -127,542
Budget Actions Approved from the Pandemic Reserve Fund:

Transfer into the General Fund 37,139
Police Vehicle Replacement 70,000
Neighborhood Streetlight Maintenance 20,403
Net General Fund: 127,542
The total General Fund revenues (not including ARPA Funds) appropriated included for key revenue source: (1) property tax in-lieu of vehicle license fees (VLF), (2) local secured ad valorem property taxes (secured property taxes), (3) sales and use taxes, and (4) franchise fees. Each of these revenue sources are described in detail below. Chart 1 below illustrates the major revenue sources for the General Fund for the last 10 years.

Chart 1: General Fund Revenues1
1Note: This table highlights the material General Fund revenue categories.

Subject: FY2022/23 Mid-Year Budget Review
Date: April 4, 2023

1. Property Taxes: Property tax is an ad valorem tax imposed on real property, such as land, buildings, and tangible personal property. Property tax revenue is collected by the County and allocated according to state law among cities, counties, school districts and special districts. Clayton property owners pay a basic tax equal to 1% of the assessed value on real property. The City receives approximately 6.6¢ of every dollar collected with larger shares going to local schools, community colleges and Contra Costa County.

For Fiscal Year 2022-23, the total assessed valuation of property values within the Contra Costa County increased by 7.79%. The City of Clayton included some of the increase in the property tax growth as part of the approved budget for the Fiscal Year 2022-23. The City’s share of the property tax revenues increased by $41,289 or 3.6% from the approved budget for the Fiscal Year 2022-23. (6.6 cents of every dollar). The City works with a property tax consultant, HDL Coren & Cone, in projecting property tax revenue, an estimate made with five factors in mind: property turnover rate, pricing and appeals exposure, new construction activity, Proposition 8 administrative reductions and Proposition 13’s annual inflation adjustment.

2. Vehicle License Fee (VLF): The largest revenue source, making up 22.1% of General Fund budgeted revenues for FY 2022/23, is property tax in-lieu of vehicle license fees (VLF). The VLF is an annual value tax on the ownership of registered vehicles. It is collected by the California Department of Motor Vehicles and then distributed to cities and counties. As part of the State Budget Act of 2004, the legislature reduced VLF revenue allocations to cities, replacing this funding with additional property tax allocations that change proportionately with the City’s annual assessed valuation (property tax inlieu of VLF revenue). Total VLF estimated for the Fiscal Year 2022-23 are projected to increase by $12,774, or 1.07% from the approved budget.

3. Sales Tax: California sales tax is imposed on the total retail price of any tangible personal property (excluding a variety of state mandated exemptions), while use tax is imposed on the purchaser for eligible transactions when sales tax has not been collected.

Although the unadjusted general state-wide sales tax rate applied to transactions is

7.25%, the basic local rate (aka “Bradley-Burns” rate) returned to local agencies (i.e., City of Clayton) is only one percent (1%). This local share is unrestricted and must be received into the General Fund. In the City of Clayton, the applicable sales tax rate is currently 8.75% due to a combination of other additional local and regional voterapproved measures. The City to-date has received $228,000 or 39% of the budgeted sales tax for the year. The sales tax receipts are two months in arrears. The City staff received a sales tax projection report from the City’s consultant, HDL Coren & Cone, for the Fiscal Year 2022-23. HDL projects the City’s sales tax revenues will be slightly over the approve budget; however, staff will not propose any adjustment in the mid-year budget due to the uncertainty in sales tax receipts during the first half of the fiscal year.

Staff will continue to monitor the sales tax revenues during the year and will update as part of the annual budget for Fiscal Year 2023-24.

4. Franchise Fees: The third largest revenue source, making up 10.7% of General Fund Subject: FY2022/23 Mid-Year Budget Review
Date: April 4, 2023

budgeted revenues for FY 2022/23, is franchise fees. Franchise fees are rent paid by utilities or other businesses for the privilege of using the City’s right-of-way (i.e., streets, sidewalks, etc.) to locate utility lines, operate vehicles, and/or conduct private business for profit. The City currently collects a 1% franchise fee from Pacific Gas & Electric and a 5% franchise fee from cable operators (i.e., Comcast and AT&T/Pacific Bell). In addition, the City collects a 10% franchise fee from Republic Services for its collection, transportation, disposal and diversion of solid waste and recyclable materials. For Fiscal Year 2022-23, the Franchise Fee revenues are projected to increase by a total of $11,577 when compared to the adopted budget. This revenue source can fluctuate for the cable television franchise fees due to a shift from customers to change to digital streaming.

5. Interest Earnings: Actual interest earning for the prior year was $148,649. The City has been reinvesting the current securities that have matured into new securities with a higher yield. The average returns on these securities are greater than 4% with a longer than one-year term. The City has earned and collected to date a total of $106,256 and projected to receive approximately $69,000 through June 30, 2023. The General Fund portion of the interest earnings from the portfolio is approximately sixty percent (60%).

Staff is projecting an increase of $16,300 in interest earning for the proposed budget for the Fiscal Year 2022-23.

General Fund Expenditures
Total General Fund expenditures approved by the Council for Fiscal Year 2022-23 was $5.4 million, a balanced budget after a contribution of approximately $127,542 from the Pandemic Reserve Fund (ARPA). The chart below illustrates the General Fund analysis for the Fiscal Year 2022-23:

Table 2: General Fund Operational Expenditures2
2Note: This table does not include all General Fund expenditure categories.

1. Personnel Costs: Mandatory personnel expenses, such as salaries, overtime, retirement, retiree health, and group insurance, make up approximately 63.12% of the City’s total operating budget. The City does not expect a personnel cost increase in FY 2022-23; however, there is one-time cost of approximately $16,145.63 in payouts associated with the separation of the City Manager. The Subject: FY2022/23 Mid-Year Budget Review
Date: April 4, 2023

proposed budget includes a supplemental request for these mandatory costs that has been incurred. There is an estimated $84,367 in salaries and benefit savings which is illustrated in Attachment 1. These salaries saving are estimated projection based on not filling current vacancies in the City and upon filling of vacant positions and additional unanticipated personnel costs may take away the salary savings noted above.

2. Operations and Maintenance: Increase in Operations and Maintenance for FY 2022- 23 will primarily be offset with the current revenue budget as adopted. The proposed budget for the Fiscal Year 2022-23 includes no new increases in the cost adjustments related to materials and supplies. The new costs that are unanticipated will be brought forward to the Council if it cannot be absorbed within the allocated budget.

The net change in the General Fund after accounting for the proposed changes to the revenues and expenditures for the Fiscal Year 2022-23 is $166,307. The table below illustrates the original budget and the proposed budget.

Table 3: General Fund Summary
General Fund Projections
Revenues
Original Budget
(Adopted June 21,
2022)
Supplemental
Budget Adjustments
Proposed Revised
Budget for Fiscla Year
2022-23
Property Taxes 1,118,781 41,289 1,160,070
Sales Taxes 571,816 12,774 584,590
Vehicle License Fees (VLF) 1,198,595 11,577 1,210,172
Franchise Fees 580,380 580,380
Interest Earnings 86,000 16,300 102,300
Other Revenues 1,652,289 1,652,289
Transfer In: Grant Funds 1,510,549 1,510,549
Transfers In: Administrative Support 169,049 169,049
Total Revenues 6,887,459 81,940 6,969,399
Expenditures
Salaries 2,351,230 2,351,230
Benefits 1,187,676 1,187,676
Operations and Maintenance 1,881,529 1,881,529
Transfers Out 1,467,024 1,467,024
Total Expenditures 6,887,459 6,887,459
Total Estimated Personnel Cost
Saving 84,367
Net Operating Surplus (Deficit) - 166,307 81,940
Capital Improvement Program (CIP): The City Council approved $1,362,497 in capital improvement projects for the Fiscal Year 2022-23. There is no new budget request for the CIP in the Fiscal Year 2022-23 budget.

Subject: FY2022/23 Mid-Year Budget Review
Date: April 4, 2023

AMERICAN RECOVERY PLAN ACT (ARPA) FUND
Signed into law on March 11, 2021, The American Rescue Plan Act of 2021 (“ARPA”) provides $350 billion in additional funding for state and local governments. The state funding portion is approximately $195 billion with $25.5 billion distributed equally among the fifty states and the District of Columbia and the remaining amount distributed according to a formula based on unemployment.

The following table illustrates the status of the ARPA Fund for the Fiscal Year 2022-23.

Table 4: ARPA Fund Analysis through FYE 21-23 though FYE 22-23 General Operating Fund
Revenue 1st ARPA Received on July 1, 2021 $1,467,024
Total Revenue FYE 21/22: $1,467,024
Expenditure Professional services $41,744
Office Supplies (COVID Test kits) $3,251
DocuSign part of Clayton Cares $432
Clayton Cares $800,000
Hero Pay $247,082
IT Expenses $42,052
Street Lighting $20,403
Fund 502 CERF for Police Vehicle Replacement $70,000
Transfer to General Fund $37,139
Total Expenditure: $1,262,103
Net Ending Balance as of FYE 21/22 $204,921
Proposed Expenditures in FY23 (allocation)
Full time Senior Accountant limited one year term $135,348 Software and Services to Digitize Records $35,000
City Council Recommended Organizational Assessments $35,000 Subtotal: $205,348
Revenue 2nd ARPA received on July 1, 2022 $1,467,024
Net Balance as of FYE 22/23: $1,466,597

FEES STUDY
On March 27, 2023 at Budget/Audit Committee Council Meeting, Finance Director presented updated proposed timeline for the City of Clayton’s master fee schedule. The following is updated timeline:

Subject: FY2022/23 Mid-Year Budget Review
Date: April 4, 2023

FY 23-24 Budget and Master Fee Schedule Timeline
Date FY 23-24 Budget & Master Fee Schedule
3/1/2023 –
3/20/2023
Kick-off project for FY 23-24 Budget; Labor Costing, Updating Master fee schedule.
3/20/2023-
3/31/2023
• FY23-24 Revenue and Expenses: Working with CLT on their budgetary input
• FY23-24 Labor Costing with GovInvest
• Updating Master Fee Schedule: Interviewing with relevant personnel and gathering the information
4/1/2023 - 4/7/2023 Updating the Master Fee Schedule and compiling preliminary proposed FY23-24 Budget
4/7/2023 Preliminary proposed Budget to City Manager for review 4/24/2023 Budget/Audit Committee: Presentation of proposed FY 23-24 Budget, Master Fee Schedule update and 5-Year CIP
5/8/2023 TLC Meeting LMD Review CPI Increase Draft Budget FY 23-24 5/15/2023 TLC for LMD Review meeting if needed
5/22/2023 Budget/Audit Committee: Budget Workshop for Proposed Annual Budget for FY 23-24 and Master Fee Schedule Updates 6/6/2023 Council Meeting: FY 23-24 Budget Workshop
6/20/2023 Council Action: Approval of the Proposed Annual Budget for FY 23-24, Master Fee Schedule and 5-Year CIP

ATTACHMENTS
Attachment 1: Estimated Salary Savings Worksheets
Attachment 1
Department Funding Items Description Benefit
1 Permit management software (estimated set-up
cost $12,000; annually $3,000 thereafter)
Implement permit processing enhancements to improve efficiency, consistency and reliability in permit processing - Implement permit processing enhancements to improve efficiency, consistency and reliability in permit processing
$ 12,000
2 Establishment of GIS funded by grants; ongoing
licensing for GIS plus City Engineer
Implement grant funded programs (geographic information system [GIS] for City land use and infrastructure; ADU pre-reviewed plan set; facilities replacements and installations at Clayton Community Park and The Grove) and asset management system
$ 50,000 Additional
$10,000
annually
Community Development Total: $ 62,000
1 Financial Consultanting fees Develop strategies and modeling that incorporate the City's liabilities and assets over the next 10-20 years
$ 8,000
2 Building interactive the City's website with
database
Build self-service portal and database within the City's website for Business license and Rental Facilities module including the capacity to accept on-demand online payment
$ 20,000
3 Strenghten Network capabilities This initiative shall implement network capabilities and evaluate opportunities to increase public access to network infrastructure throughout the system
$ 25,000
Finance Department Total : $ 53,000
1 Ditch Witch vacuum trailer Crews can clean storm drains and dig around pipes more efficiently while reducing possibility of worker injuries $ 85,000
2 2 F250 Utility body trucks Replace existing 1998 and 1999 service trucks $ 130,000 3 2 Rain Master DXI controllers for CCP Accomplished through Climatec project if approved $ 50,000 4 2 Flow meters for CCP Accomplished through Climatec project if approved $ 2,000 5 2 Master valves for CCP Accomplished through Climatec project if approved $ 3,000 6 Rain Master DXI for Stranahan Park Allow staff to communicate with controller via central system $ 20,000 7 New Toro Turf Master Mower 6000 series Replace existing mower $ 100,000 8 Flat Bed trailer Allow staff to move mini excavator and skid steer tractor and eliminates need for backup vehicle
$ 10,000
Public Works Total: $ 400,000
Engineering Department 1 GIS asset management system, with using latest technology of Google Streetview type data
collection for storm drain inlets, signs, etc.

Engineering Department Total:

Community Development
Department
Amount
Public Works
Finance Department
Please refer to CDD item
2 above for the cost
information.
1 of 3
Attachment 1
Department Funding Items Description Benefit Amount
1 Video surveillance system at City Hall/PD This will provide security and monitoring of the entrances to the building, as well as the area where the on-duty patrol cars are parked.
$ 8,000
2 Tattle-Tale traffic signal lights for 6 intersections These are used in many jurisdictions, and assist officers monitoring traffic signals because you can see when the light is red or green from a position behind the lights where you would not ordinarily be able to see them.
$ 3,000
3 A New Patrol Vehicle New fully outfitted Ford Explorer to replace vehicle at end of useful life
$ 85,000
4 Dash cameras with License Plate Reader
technology for 8 cars
We currently have the second generation dash camera from Axon, which video records the road in front of the patrol car, as well as the back seat of the car where arrestees are placed during transport. The third generation cameras also have License Plate Reader technology, so as the patrol car drives around, it is scanning plates of all vehicles that it passes. This can detect stolen vehicles, but can also log where vehicles have historically been located in the event that we are looking for a particular vehicle. $ 100,000
5 Install automated entry points at all entrances to
the building
This would allow us to more closely monitor who gains access to the building, and also allows us to disable someone’s access when they should not have access to the building, such as former employees. The last time the building was re-keyed was over 10 years ago, and many people have come and gone since then. $ 10,000
6 Drone program Many Law Enforcement agencies throughout the country have turned to drone technology as another tool for solving crime and providing rescue operations. A drone can be used to search for outstanding suspects where it may be unsafe for an officer to enter, such as backyards, houses, and bushes. It can also be used to search for a lost child or adult. Drones can be used for aerial photographs of crime or traffic collision scenes, and to assess damage in areas that are not safe to enter. The cost listed is for the drone and the training needed to operate it.
$ 20,000
7 Create turn-outs for bus stops along Clayton Rd -
6 total
There are 6 bus stops along Clayton Rd that do not have turn-outs, meaning that the bus must stop in the right hand lane of traffic to pick up passengers. This creates traffic hazards because cars must either stop behind the bus while it is stopped, or try to change lanes to go around the bus.
$ 1,500,000
Police Department Total: $ 1,726,000
Police Department
2 of 3
Attachment 1
Department Funding Items Description Benefit Amount
1 Agenda Management System $ 19,730
2 File Cabinet System, 1st Floor This will replace the broken filing cabinets that are currently used to store Planning, City Clerk, Finance, and Personnel Records.

The Personnel Records require a locking fire-proof cabinet. $ 26,500
3 Chairs at Hoyer Hall for Elected Officials and
Staff
The current chairs are broken and uncomfortable. $ 4,300 4 DocuSign for 500 envelopes Digital Signature $ 2,400
5 Dropbox Sign for up to 4 users inclduding
unlimited signing
Digital Signature $ 600
6 Hire Facility Person to attedn CC/PC meeting to
assita with room temperature, notify A/V person
of sound issues or issues with the montiores
during the meeting.

Could be staffed by someone in Maintenance (on overtime) or volunteer - $100 per meeting
City Cerk/HR Manager Total: $ 53,530
1 Salary Survey Establish competitive compensation structure $ 20,000 2 City Hall pool vehicle (preferably electric) Eliminates need for employees to utilize personal vehicles $ 40,000 3 PR and Marketing Firm Create a platform to highlight and publicize positive aspects of $ 50,000 annually 4 Citywide GIS/Asset Management $ 50,000
5 Replace generator at City Hall Existing diesel generator has limitations for essential facility $ 250,000 6 New Irrigation system at Clayton Community
Park
Existing system breaks frequently causing coslty water leaks and disruption to planned activities
$ 1,000,000
7 Keller House Restoration Create unique venue for special events $ 5,000,000 City Manager Total: $ 6,410,000
TOTAL $ 8,704,530
City Manager
City Clerk/HR Manager
3 of 3
Agenda Item: 10(b)
1 AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: Ron Bernal Jr, Interim City Manager
DATE: April 4, 2023
SUBJECT: Approve Funding Appropriation for American Rescue Plan Act (ARPA) Funds for Energy Cost Savings, Efficiency Measures and Asset Replacement
___________________________________________________________________________

RECOMMENDATION
It is recommended the City Council discuss, provide direction to staff and approve one-time appropriation of American Rescue Plan Act (ARPA) funds for energy cost savings, efficiency measures and asset replacement.

BACKGROUND
In March 2021 the Federal Government passed the American Rescue Plan Act (ARPA), which had total funding of $1.9 trillion. This included $350 billion in funding to States, Localities, and Tribal Governments. This program is separate from Federal grants targeting both institutions and businesses that were impacted by the COVID-19 Pandemic. The City of Clayton is expected to receive a total of $2,934,049 in two installments of approximately $1,467,025 each.

As of March 29, 2023, $1,466,597 of ARPA fund remains as illustrated below:

General Operating Fund
Revenue 1st ARPA Received on July 1, 2021 $1,467,024
Total Revenue FYE 21/22 $1,467,024
Expenditure Professional services $41,744
Office Supplies (COVID testkits) $3,251
DocuSign part of Clayton Cares $432
Clayton Cares $800,000
Hero Pay $247,082
Subject: Adopt a Resolution Approving One-Time Essential Worker Premium Pay for City Employees and Appropriating ARPA Funding for Implementation
Date: January 18, 2022

2 IT Expenses $42,052
Street Lighting $20,403
Fund 502 CERF for Police Vehicle Replacement $70,000
Transfer to General Fund $37,139
Total Expenditure $1,262,103
Net Ending Balance as of FYE 21/22 $204,921
Proposed Expenditures in FY23 (allocation)
Full time Senior Accountant limited one year term $135,348 Software and Services to Digitize Records $35,000
City Council Recommended Organizational Assessments $35,000 Subtotal $205,348
Revenue 2nd ARPA received on July 1, 2022 $1,467,024
Net Balance as of FYE 22/23 $1,466,597

DISCUSSION
As part of the Goal Setting Special Meeting on the March 13, 2023 Council meeting, the staff present each department’s goals along with funding requests. The staff considered the use of ARPA funds to improve efficiency and add tools and technology to enhance City business operations (Attachment 1).

Additionally, the Climatec Comprehensive Infrastructure Renewal and General Fund Savings Program may require City funding to secure project financing. This project has also been included in Attachment 1.

FISCAL IMPACTS
Depending on the items the City Council wishes to fund, the ARPA Fund 111 balance will be reduced. There is currently $1,466,597 available in the account.

ATTACHMENT

1. ARPA Fund Appropriation Request List
Attachment 1
Department Funding Items Description Benefit
1 Permit management software (estimated set-up
cost $12,000; annually $3,000 thereafter)
Implement permit processing enhancements to improve efficiency, consistency and reliability in permit processing - Implement permit processing enhancements to improve efficiency, consistency and reliability in permit processing
$ 12,000
2 Establishment of GIS funded by grants; ongoing
licensing for GIS plus City Engineer
Implement grant funded programs (geographic information system [GIS] for City land use and infrastructure; ADU pre-reviewed plan set; facilities replacements and installations at Clayton Community Park and The Grove) and asset management system
$ 50,000 Additional
$10,000
annually
Community Development Total: $ 62,000
1 Financial Consultanting fees Develop strategies and modeling that incorporate the City's liabilities and assets over the next 10-20 years
$ 8,000
2 Building interactive the City's website with
database
Build self-service portal and database within the City's website for Business license and Rental Facilities module including the capacity to accept on-demand online payment
$ 20,000
3 Strenghten Network capabilities This initiative shall implement network capabilities and evaluate opportunities to increase public access to network infrastructure throughout the system
$ 25,000
Finance Department Total : $ 53,000
1 Ditch Witch vacuum trailer Crews can clean storm drains and dig around pipes more efficiently while reducing possibility of worker injuries $ 85,000
2 2 F250 Utility body trucks Replace existing 1998 and 1999 service trucks $ 130,000 3 2 Rain Master DXI controllers for CCP Accomplished through Climatec project if approved $ 50,000 4 2 Flow meters for CCP Accomplished through Climatec project if approved $ 2,000 5 2 Master valves for CCP Accomplished through Climatec project if approved $ 3,000 6 Rain Master DXI for Stranahan Park Allow staff to communicate with controller via central system $ 20,000 7 New Toro Turf Master Mower 6000 series Replace existing mower $ 100,000 8 Flat Bed trailer Allow staff to move mini excavator and skid steer tractor and eliminates need for backup vehicle
$ 10,000
Public Works Total: $ 400,000
Engineering Department 1 GIS asset management system, with using latest technology of Google Streetview type data
collection for storm drain inlets, signs, etc.

Engineering Department Total:

Community Development
Department
Amount
Public Works
Finance Department
Please refer to CDD item
2 above for the cost
information.
1 of 3
Attachment 1
Department Funding Items Description Benefit Amount
1 Video surveillance system at City Hall/PD This will provide security and monitoring of the entrances to the building, as well as the area where the on-duty patrol cars are parked.
$ 8,000
2 Tattle-Tale traffic signal lights for 6 intersections These are used in many jurisdictions, and assist officers monitoring traffic signals because you can see when the light is red or green from a position behind the lights where you would not ordinarily be able to see them.
$ 3,000
3 A New Patrol Vehicle New fully outfitted Ford Explorer to replace vehicle at end of useful life
$ 85,000
4 Dash cameras with License Plate Reader
technology for 8 cars
We currently have the second generation dash camera from Axon, which video records the road in front of the patrol car, as well as the back seat of the car where arrestees are placed during transport. The third generation cameras also have License Plate Reader technology, so as the patrol car drives around, it is scanning plates of all vehicles that it passes. This can detect stolen vehicles, but can also log where vehicles have historically been located in the event that we are looking for a particular vehicle. $ 100,000
5 Install automated entry points at all entrances to
the building
This would allow us to more closely monitor who gains access to the building, and also allows us to disable someone’s access when they should not have access to the building, such as former employees. The last time the building was re-keyed was over 10 years ago, and many people have come and gone since then. $ 10,000
6 Drone program Many Law Enforcement agencies throughout the country have turned to drone technology as another tool for solving crime and providing rescue operations. A drone can be used to search for outstanding suspects where it may be unsafe for an officer to enter, such as backyards, houses, and bushes. It can also be used to search for a lost child or adult. Drones can be used for aerial photographs of crime or traffic collision scenes, and to assess damage in areas that are not safe to enter. The cost listed is for the drone and the training needed to operate it.
$ 20,000
7 Create turn-outs for bus stops along Clayton Rd -
6 total
There are 6 bus stops along Clayton Rd that do not have turn-outs, meaning that the bus must stop in the right hand lane of traffic to pick up passengers. This creates traffic hazards because cars must either stop behind the bus while it is stopped, or try to change lanes to go around the bus.
$ 1,500,000
Police Department Total: $ 1,726,000
Police Department
2 of 3
Attachment 1
Department Funding Items Description Benefit Amount
1 Agenda Management System $ 19,730
2 File Cabinet System, 1st Floor This will replace the broken filing cabinets that are currently used to store Planning, City Clerk, Finance, and Personnel Records.

The Personnel Records require a locking fire-proof cabinet. $ 26,500
3 Chairs at Hoyer Hall for Elected Officials and
Staff
The current chairs are broken and uncomfortable. $ 4,300 4 DocuSign for 500 envelopes Digital Signature $ 2,400
5 Dropbox Sign for up to 4 users inclduding
unlimited signing
Digital Signature $ 600
6 Hire Facility Person to attedn CC/PC meeting to
assita with room temperature, notify A/V person
of sound issues or issues with the montiores
during the meeting.

Could be staffed by someone in Maintenance (on overtime) or volunteer - $100 per meeting
City Cerk/HR Manager Total: $ 53,530
1 Salary Survey Establish competitive compensation structure $ 20,000 2 City Hall pool vehicle (preferably electric) Eliminates need for employees to utilize personal vehicles $ 40,000 3 PR and Marketing Firm Create a platform to highlight and publicize positive aspects of $ 50,000 annually 4 Citywide GIS/Asset Management $ 50,000
5 Replace generator at City Hall Existing diesel generator has limitations for essential facility $ 250,000 6 New Irrigation system at Clayton Community
Park
Existing system breaks frequently causing coslty water leaks and disruption to planned activities
$ 1,000,000
7 Keller House Restoration Create unique venue for special events $ 5,000,000 City Manager Total: $ 6,410,000
TOTAL $ 8,704,530
City Manager
City Clerk/HR Manager
3 of 3
Agenda Item: 10(c)

AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: Ron Bernal, Interim City Manager
DATE: April 4, 2023
SUBJECT: Annual Consideration of Canceling Any Regular City Council Meetings During the Summer of 2023
___________________________________________________________________________

RECOMMENDATION
It is recommended the City Council discuss its collective desire to cancel any regularlyscheduled City Council meetings during the upcoming summer months of July, August and/or September 2023; and if so determined, by motion cancel the specific meetings date(s).

BACKGROUND
Clayton Municipal Code Section 2.04.010 specifies the regular public meetings of the Clayton City Council shall be held on the first and third Tuesdays of each and every month.

In previous years, the City Council has canceled one or more of its regularly-scheduled meetings during summer months to accommodate various travel plans of its elected officials. In addition, the workload of the City Council business items for action often decreases in the summer months following formal adoption of the annual City and Capital Improvement Program (CIP) Budgets and the associated procedures to levy the annual special taxes for the several assessment and maintenance districts administered by the City.

Various key members of the City Management staff also take scheduled vacations during the summer months.

In order to provide optimum notice of meeting cancellation to interested members of the public and the development community as well as to arrange placement of agenda matters around the vacation plans of the City Council, this item has typically been placed on a agenda for discussion and direction purposes. The act of canceling one or more regularlyscheduled meetings is a matter to be taken in open public session by the City Council.

Subject: Discussion & Direction on Cancellation of any Council Meetings in Summer 2023 Date: April 4, 2023

SUMMER 2023 REGULAR MEETINGS
The following table outlines the upcoming dates for regular City Council meetings in the summer months of 2023:

Meeting Date Comments
Tuesday, July 4 City Holiday – Consider Canceling
Tuesday, July 18 Agenda handles the remainder of annual levies for existing assessment districts in FY 23-24,
including the previously-set & noticed Public
Hearing on GHAD annual assessments
Tuesday, August 1 Consider Canceling - No pressing Agenda Items at this time
Tuesday, August 15 No pressing Agenda Items at this time Tuesday, September 5 Consider Canceling - No pressing Agenda Items at this time
Tuesday, September 19 No pressing Agenda Items at this time

FISCAL IMPACT
There is no adverse financial impact to the City for cancellation of City Council meetings.

Nominal savings occur for expenses incurred in the preparation, publication, and holding of a Council meeting (e.g. staff time, paper and copying expenses, meeting room utilities, video-taping/zoom virtual of the meetings for livestreaming and cable television rebroadcast).

If necessary or should an emergency arise between canceled meetings, a special meeting of the City Council may always be called by the Mayor with proper notice to members of the City Council, the press, and with fully-required public postings of the Agenda.