Richard G Enea, Vice Mayor Jim Diaz, Councilmember
Holly Tillman, Councilmember Kim Trupiano, Councilmember
1. CALL TO ORDER AND ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. PUBLIC COMMENT ON NON-AGENDA ITEMS
4. CONSENT CALENDAR
(a) Approve March 03, 2026 Minutes
(b) Adopt Resolution No.03-2026 to Revise the City of Clayton's Appropriations (Gann) Limits Applicable During Fiscal Year 2024-25 and Fiscal Year 2025-26
CLAYTON CITY COUNCIL
REGULAR MEETING AGENDA
TUESDAY, APRIL 7, 2026
7:00 PM
Hoyer Hall, Clayton Community Library
6125 Clayton Road, Clayton, CA 94517
Jeff Wan, Mayor
Members of the public may address the City Council on non-agendized items within the Council’s jurisdiction. To ensure an orderly meeting and an equal opportunity for everyone, each speaker is limited to three (3) minutes, or the time established by the Mayor. 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 other agenda items will be allowed when each item is considered by the Council.
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Agenda April 7, 2026
1 (c) Resolution Directing the Preparation of an Engineer’s Report for the Diablo Estates Benefit Assessment District
(d) Authorize the City Manager to Sign Amendment No. 1 to a Contract Signed May 9, 2025 by the City Manager with NBS Government Finance Group Adding a Citywide Fee Study to the Scope of Work, Extending the Contract to September 30, 2026 and Adding $42,000 for a total Not to Exceed Amount of $60,000. (e) Establishing 2026/2027 Equivalent Runoff Unit (ERU) Assessment Rate for Federal and State Mandated National Publishing Discharge Elimination System (NPDES) Program (Storm Water Pollution Prevention System)
(f) Acceptance Of The 2025 General Plan Implementation and Housing Element Annual Progress Report
5. RECOGNITIONS AND PRESENTATIONS
(a) Presentation of a Proclamation Recognizing March 2026 as American Red Cross Month
(b) Presentation of a Proclamation Honoring Contra Costa County Fire Protection District Chief Lewis Broschard for His Service, Leadership and Dedication to the Community Upon His Retirement
(c) City Beautification and Project Update
6. REPORTS
(a) City Manager's Report
(b) City Council/Committees Reports
7. PUBLIC HEARINGS
(a) Introduce An Ordinance Amending The Clayton Municipal Code Subsection
17.36.079 To Chapter 17.36 (General Regulations) Of Title 17 (Zoning) To Add Specific Language Allowing Certain Affordable Housing By-Right And Defining ByRight
8. ACTION ITEMS
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Agenda April 7, 2026
2 (a) Review FY26 Budget Status, Consider Approval of FY27 Budget Revisions and Reserve Options
9. CLOSED SESSION
10. ADJOURNMENT
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CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov. Code § 54956.8) Property Under Negotiation: Assessor’s Parcel Numbers: APN: 118-370-077 and 118-520-001-9, located at Clayton Road east of Peacock Creek Drive, Clayton, CA, 94517
Agency Negotiators: Kris Lofthus, City Manager and Kraig Chalem, Senior Planner
Negotiating Parties: Grant Alvernaz, Three Putt Development, LLC Under Negotiations: Price and Terms of Payment
Agenda April 7, 2026
3 Meeting Information and Access
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 requiring special accommodation to participate, please call the City Clerk’s office at least 72 hours (about 3 days) before the meeting at (925) 673-7300.
E-mail Public Comments: Public comment may also be sent to the City Clerk at [email protected] by 12:00 p.m. on the day of the meeting. All e-mailed public comments will be forwarded to the entire committee and made part of the official meeting file.
Each person attending the meeting who wishes to speak on an agendized or non-agendized matter (within the council’s jurisdiction), shall have a set amount of time to speak as determined by the Mayor.
Agenda April 7, 2026
4 TO: CLAYTON CITY COUNCIL
FROM: Leticia Miguel, City Clerk
DATE: April 7, 2026
SUBJECT: Approve March 03, 2026 Minutes
Agenda Item: 4.a
STAFF REPORT
RECOMMENDATION
Approve by Minute Order
BACKGROUND
Does not apply to this item.
FISCAL IMPACT
No fiscal impact associated with this agenda item.
ATTACHMENTS
DRAFT CC MIN 2026-03-03
5 MEETING MINUTES - DRAFT
REGULAR MEETING
CLAYTON CITY COUNCIL
______________________________________________________________________ Tuesday, March 03, 2026 7:00 PM
1. CALL TO ORDER AND ROLL CALL
The meeting was called to order at 7:00 PM by Mayor Jeff Wan at Hoyer Hall, in the Clayton Community Library, 6125 Clayton Road, Clayton, California
ROLL CALL
Present: 5 Councilmember Jim Diaz, Councilmember Holly Tillman, Councilmember Kim Trupiano, Vice Mayor Richard Enea, and Mayor Jeff Wan
Staff Present:
City Manager, Kris Lofthus
Administrative Services Director, Dennis Bozanich
City Attorney, Mala Subramanian
City Clerk, Leticia I. Miguel
2. PLEDGE OF ALLEGIANCE
Mayor Wan led the Pledge of Allegiance.
3. PUBLIC COMMENT ON NON-AGENDA ITEMS
No Public comment was received.
4. CONSENT CALENDAR
No public comment was received.
A motion was made by Vice-Mayor Enea, seconded by Councilmember Trupiano, and approved by a vote of those present to adopt the Consent Calendar.
The motion passed as follows:
Aye: 5 – Diaz, Tillman, Trupiano, Enea, and Wan
6 City Council Meeting Minutes March 03, 2026
City of Clayton Page 2 of 3
(a) Approve February 03, 2026 Minutes
Approved as Submitted on the Consent Calendar.
(b) Approve January 06, 2026 Minutes
Approved as Submitted on the Consent Calendar.
(c) Adopt a Resolution Approving the Amended and Restated Municipal Pooling Authority Joint Exercise of Powers Agreement for Providing Property, Workers' Compensation, Public Liability, and Other Insurance Coverages Adopted. Enactment No. RES 02-2026
(d) Authorize the City Manager to Sign a Maintenance Services Agreement with Cowan and Thompson Construction, Incorporated, for an Amount Not to Exceed $95,000 for On-Call Pavement Repair Services from April 1, 2026 through June 30, 2027 with up to Three Additional One-Year Extensions by Mutual Agreement
Approved by Minute Order
(e) Authorize the City Manager to Sign a Professional Services Agreement with CSG, Inc., for an Amount Not to Exceed $95,000 for Professional Engineering Services from April 1, 2026 through June 30, 2027 with up to Three Additional One-Year Extensions by Mutual Agreement
Approved by Minute Order
(f) Approve the purchase of two new Public Works Maintenance vehicles to replace unserviceable fleet vehicles
Approved by Minute Order
5. RECOGNITIONS AND PRESENTATIONS
No items scheduled.
6. REPORTS
(a) City Manager's Report
No public comment was received.
City Manager Lofthus made the following announcements:
o Reported that EV charging for vehicles is still being programed and tested. 7 City Council Meeting Minutes March 03, 2026
City of Clayton Page 3 of 3
o For the library refresh, furniture purchase was received and updates on logistic planning were shared.
o Provided update to large fence installation at the Grove Park, the city is currently treating the soil before lawn installation.
(b) City Council/Committees Report
No public comment was received.
City Council reports were included in the agenda packet.
7. PUBLIC HEARINGS
No items scheduled.
8. ACTION ITEMS
(a) Audited Annual Comprehensive Financial Report of the City of Clayton for the Fiscal Year ending June 30, 2025.
City Manager Kris Lofthus, Sheldon Chavan from Chavan & Associates, LLP and Administrative Services Director, Dennis Bozanich, presented the item to the City Council and responded to questions.
No Public comment was received.
A motion was made by Councilmember Trupiano, seconded by Councilmember Tillman, to accept and file the Annual Comprehensive Financial Report with updated changes.
The motion passed as follows:
Aye: 5 – Diaz, Tillman, Trupiano, Enea, and Wan
9. ADJOURNMENT
Mayor Wan adjourned the meeting at 7:55 p.m.
8 TO: CLAYTON CITY COUNCIL
FROM: Dennis Bozanich
DATE: April 7, 2026
SUBJECT: Adopt Resolution No.03-2026 to Revise the City of Clayton's Appropriations (Gann) Limits Applicable During Fiscal Year 2024-25 and Fiscal Year 2025- 26 Agenda Item: 4.b
STAFF REPORT
RECOMMENDATION
Staff recommends that the City Council approve the Resolution that revises the City's Appropriation Limit for FY2024-25 and FY 2025-26.
BACKGROUND
The city's auditor identified the transposition of a number in the calculation of the Gann Limit adopted by the City Council (Resolution 34-2024) on July 16, 2024.
ANALYSIS
Adopting the Resolution will revise and correct the past two Appropriation Limit resolutions because the calculation requires a correct base number before incorporating the growth factors allowed under state statute. This correction will also provide the correct basis for a resolution later this year establishing the Appropriations Limit for FY2026-27.
CEQA
Not applicable
FISCAL IMPACT
No fiscal impact from correcting the error. The City has a significant annual tax gap (estimated appropriations below the limit) of over $8.6 million.
ATTACHMENTS
Resolution 03-2026 Approving A Revised Appropriations (Gann) Limit for FY2024-25.pdf Exhibit A - Revised FY24-25 Aprropriation Limit Calculation.pdf Exhibit B - Revised FY25-26 Appropriation Limit Calculation.pdf 9 RESOLUTION NO. 03-2026
A RESOLUTION REVISING THE APPROPRIATIONS LIMIT APPLICABLE TO THE CITY OF CLAYTON DURING FISCAL YEAR 2024-25
THE CITY COUNCIL
City of Clayton, California
WHEREAS, by Resolution No. 34-2024, enacted on July 16, 2024, the City of Clayton (City) used an incorrect amount of $14,104,285 for the FY2023-24 Appropriation Limit, rather than the correct amount, which was to have been $14,104,258, a difference of twenty-seven dollars; and WHEREAS, as a result of that error, Resolution No. 34-2024, established an incorrect Appropriations Limit applicable to the City during the Fiscal Year (FY) 2024-25 of $14,632,351, rather than the correct Appropriations Limit for FY2024-25 of $14,632,370 as shown in Exhibit A; and WHEREAS, as a result of the revised FY 2024-25 Appropriations Limit applicable to the City during the Fiscal Year (FY) 2024-25 of $14,632,370, the City’s FY2025-26 Appropriations Limit, adopted on July 15, 2025, requires a revision to $15,548,218 as shown in Exhibit B, a difference of twenty-six dollars; and
WHEREAS, the need for a correction and restatement of the Appropriations Limit was identified by the City’s outside audit firm on March 17, 2026; and WHEREAS, Article XIIIB of the California Constitution and Sections 7902 (b) and 7910 of the Government Code require that each local agency subject thereto establish by resolution the applicable appropriations limit for each Fiscal Year by applying to the limit for the previous Fiscal Year the factors, as issued by the California Department of Finance reflecting changes in the California per capita personal income and in the local agency's population; and,
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Clayton that the corrected appropriations limit for Fiscal Year 2024-25 is hereby established as $14,632,370.
NOW BE IT FURTHER RESOLVED by the City Council of the City of Clayton that the corrected appropriations limit for Fiscal Year 2025-26 is hereby established as $15,548,218.
PASSED, APPROVED, AND ADOPTED by the City Council of Clayton, California at a regular public meeting of thereof held on April 7, 2026 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
THE CITY COUNCIL OF CLAYTON, CA
10 ATTEST:
_______________________
Leticia Miguel, Clerk
11 12
13 TO: CLAYTON CITY COUNCIL
FROM: Dennis Bozanich
DATE: April 7, 2026
SUBJECT: Resolution Directing the Preparation of an Engineer’s Report for the Diablo Estates Benefit Assessment District
Agenda Item: 4.c
STAFF REPORT
RECOMMENDATION
Adopt Resolution No. 04-2026 directing the preparation of an Engineer’s Report for the Diablo Estates Benefit Assessment District.
BACKGROUND
At the request of the developer of the Diablo Estates residential project, the City Council (by approval of Resolution 04-2012 on February 7, 2012) formed the Diablo Estates Benefit Assessment District (“District”) in accordance with the requirements of the Landscaping & Lighting Act of 1972 and the Benefit Assessment Act of 1982. The purpose of the District is for private property owners to be assessed annually to fund the annual maintenance of the various subdivision improvements constructed as part of the residential project that are of benefit to the properties within the subdivision. The initial Engineer’s Report and benefit assessment was prepared by the Engineer of Work and approved via a Proposition 218 ballot election by the property owners as required by law. The District was formed allowing the maximum annual assessment rates to increase annually based on the San Francisco Bay Area Consumer Price Index (“CPI”).
Although the Benefit Assessment Act of 1982 does not require further action prior to levying the annual assessment if the assessment rates are not increased (other than any preauthorized adjustment due to a CPI increase), the Landscaping & Lighting Act of 1972 does require the filing and approval of an annual Engineer’s Report prior to levying an annual assessment.
For the purpose of continuing to levy annual assessments on the property owners, the City Council initiates the process by calling for preparation of an annual Engineer’s Report. After adoption of this Resolution, the next step will be for the Engineer of Work to submit, and the City Council to review and then accept, the Engineer’s Report for this District. Following that submittal and action by Council, there will be a public hearing (with property owners’ advance notification) prior to formally setting next year’s assessments in sufficient time to be levied and collected on the County’s Fiscal Year 2026-2027 secured property tax bills. 14 ANALYSIS
This is the first step to initiate the process for setting the annual assessments on the properties within the Diablo Estates subdivision for landscape and weed abatement services which is collected through the property taxes collected by the County.
CEQA
None
FISCAL IMPACT
This is the first step to initiate the process for setting the annual assessments on the properties within the Diablo Estates subdivision for landscape and weed abatement services which is collected through the property taxes collected by the County.
ATTACHMENTS
Resolution No 04-2026 Resolution of Initiation for Diablo Estates BAD.pdf 15 Resolution No. 03-2026 Page 1 of 2 April 7, 2026
RESOLUTION NO. 04-2026
A RESOLUTION DIRECTING THE FILING OF AN ANNUAL ENGINEER’S REPORT
FOR THE DIABLO ESTATES BENEFIT ASSESSMENT DISTRICT
(PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972)
THE CITY COUNCIL
City of Clayton, California
WHEREAS, as requested by the Diablo Estates project’s property owners and by Resolution No. 04-2012 adopted February 7, 2012, the Clayton City Council formed the Diablo Estates Benefit Assessment District (the “District”) pursuant to both the Landscaping & Lighting Act of 1972 and the Benefit Assessment Act of 1982; and WHEREAS, an initial Engineer’s Report was prepared by a registered civil engineer; and
WHEREAS, an initial annual assessment, along with an allowable annual rate increase in accordance with annual increase in the San Francisco-Bay Area Consumer Price Index (“CPI”), was approved by the affected property owner(s) in a Proposition 218 ballot election; and
WHEREAS, although the Benefit Assessment Act of 1982 requires no further action to continue levying the annual assessment, the Landscaping & Lighting Act of 1972 does require the City Council to direct the Engineer of Work to prepare an Annual Engineer’s Report prior to the levying of an assessment; and
WHEREAS, it is the City Council’s intent to commence said proceedings to ensure sufficient funds be assessed, levied, collected, and expended each fiscal year to fulfill the property owner’s obligation to properly maintain, operate and repair the associated Diablo Estates subdivision improvements as private property owner beneficiaries; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of Clayton, California, does hereby resolve as follows:
1. There are no significant changes proposed to the improvements maintained by the District.
2. The City Engineer is hereby directed to prepare and file an Annual Engineer’s Report in accordance with the provisions of the Landscaping & Lighting Act of 1972.
3. This Resolution is adopted pursuant to Section 22622 of the California Streets and Highways Code.
PASSED, APPROVED AND ADOPTED by the City Council of Clayton, California, at a regular public meeting thereof held on the 7th day of April 2026, by the following vote:
16 Resolution No. 03-2026 Page 2 of 2 April 7, 2026
AYES:
NOES:
ABSENT:
ABSTAIN:
THE CITY COUNCIL OF CLAYTON, CA
Jeff Wan, Mayor
ATTEST:
Leticia Miguel, City Clerk
17 TO: CLAYTON CITY COUNCIL
FROM: Dennis Bozanich
DATE: April 7, 2026
SUBJECT: Authorize the City Manager to Sign Amendment No. 1 to a Contract Signed May 9, 2025 by the City Manager with NBS Government Finance Group Adding a Citywide Fee Study to the Scope of Work, Extending the Contract to September 30, 2026 and Adding $42,000 for a total Not to Exceed Amount of $60,000.
Agenda Item: 4.d
STAFF REPORT
RECOMMENDATION
Staff recommends approval of the contract amendment to include the development of a validated fee study in the current scope of work for a city-wide Costa Allocation Plan. The addition to the scope of work will require an extension of the contract to September 30, 2026 and the additional of $42,000 to the not to exceed limit.
BACKGROUND
In May 2025, the City Manager signed a contract with NBS to develop a Cost Allocation Plan for the City of Clayton. That contract was not to exceed $18,000. This amount was in the City Manager's signing authority.
NBS had also provided an estimate of $40,300 for completing a citywide Fee Study. Staff is recommending that the amended contract include a not to exceed amount of $42,000 for the Fee Study; a total (CAP + Fee Study) "not to exceed" of $60,000. The City Council is being asked to approve this amendment because the total amount would now exceed the City Manager's signing authority.
ANALYSIS
The Fee Study, when completed by NBS, will enhance the accuracy and the justification for the fees being charged for a variety of city-provided permits, licenses and rentals. It is worth noting that Proposition 218 (1996) laid out clear definitions that identify characteristics of a "tax" and the required elements of a "fee."
The work to be completed under the amended contract will also review our fee schedule in comparison to other similar cities to identify any possible fee gaps and avoid fee duplication or overlaps. The goal of the Fee Study will be a robust cost analysis that brings the City of Clayton as close to 100% cost recovery as possible.
When completed the Cost Allocation Plan (CAP) will provide the City with an objective 18 analysis and plan for allocating operational and overhead costs to the various funds including special revenue funds. Organizations with adopted CAPs greatly simplify budget development and increase the transparency for policy makers and residents.
CEQA
None
FISCAL IMPACT
The cost of the fee study will be built into future permit and rental fees. The cost allocation plan expenditures will be spread across all funds that as part of overhead or administrative charges.
19 TO: CLAYTON CITY COUNCIL
FROM: Dennis Bozanich
DATE: April 7, 2026
SUBJECT: Establishing 2026/2027 Equivalent Runoff Unit (ERU) Assessment Rate for Federal and State Mandated National Publishing Discharge Elimination System (NPDES) Program (Storm Water Pollution Prevention System) Agenda Item: 4.e
STAFF REPORT
RECOMMENDATION
Staff recommends that the City Council adopt the Stormwater Utility Assessment Resolution No. 05-2026 (Attachment 1), establishing the Rate per Equivalent Runoff Unit (ERU) for FY 2026/2027, and requesting the Contra Costa Flood Control and Water Conservation District to adopt an Annual Parcel Assessment for Drainage and Maintenance and the National Pollutant Discharge Elimination System (NPDES), maintaining the current maximum ERU Rate at $29.00 per single-family parcel.
BACKGROUND
The 1987 Reauthorization of the Federal Clean Water Act, as well as similar State legislation, required local agencies to obtain a NPDES Permit for discharging the contents of municipal storm drainage water conveyance systems. As implemented and enforced by the State through the Regional Water Quality Control Board (San Francisco Bay Area Region), this permitting effort is intended to improve water quality in the Delta and San Francisco Bay Estuary System, protect endangered species, and safeguard public waters and waterways for continued economic, recreation and health purposes. Stormwater runoff pollution has been identified as a significant impact on water quality and wildlife in the Bay Area by the State and Federal Governments. During wet weather, large amounts of pollutants, such as oil and grease from automobiles, heavy metals from vehicle exhaust and brake pads, such as copper and lead, pesticides, herbicides and fertilizers from lawns and gardens, soil erosion, and biological material enter the storm drain system and ultimately empty, untreated, into creeks, waterways, the Delta and the Bay
The City participates and obtains its joint NPDES permit from the SF Regional Water Quality Control Board via the Contra Costa Clean Water Program whose participants include the cities within the County, the County and the Flood Control District. The City of Clayton has participated since its inception in September 1993. The SF Regional Water Quality Control Board issued the Municipal Regional Permit 3.0 (MRP 3.0), which began July 1, 2022, and extends to June 30, 2027. MRP 3.0 covers many counties and cities in the Bay Area. The MRP 3.0 permit allows the City and other jurisdictions to utilize the storm water drainage system for the discharges into creeks that ultimately drain into the Bay. This joint participation 20 allows for the program management and permit process costs to be kept to a minimum through economies of scale and local and regional collaboration, at a fraction of the cost of doing it alone. The program provides for a regional approach to stormwater pollution control, regional monitoring, public education and outreach, technical support and training, special studies and NPDES permit administration requirements.
The cost of meeting the obligations of the increased requirements contained in the MRP 3.0 have been and are expected to continue to exceed City revenues received from the ERU.
Although it is difficult to fully identify all future additional costs at this point, current compliance costs are projected to outpace revenues in FY 2026/2027. Requirements contained in our current permit MRP 3.0 include more elimination of litter going into storm drains; more monitoring and reporting on our storm drain inlets trash capture devices (which capture litter before going to the creek), and “green infrastructure” which sets forth standards for cities to redirect their existing storm drainage water into landscape areas.
AUGMENTED FUNDING DENIED:
When the program was originally established in 1993, the rate cap for the current parcel fee in Clayton was set by the City Council at $29/ERU. Because other members of the Clean Water Program also have the same issues (costs exceeding available revenue available from the ERU rate) a cost/revenue analysis was undertaken by the Contra Costa Clean Water Program to evaluate possible additional funding mechanisms for the added requirements of the MRP.
The Clean Water Program attempted three times to pursue legislation to add stormwater to the definitions of other utilities such as sewer and water and was not successful in receiving needed legislative support, and there is no support by the governor and his staff. It was after these statewide attempts proved fruitless, our straining local funding and the continuing increased requirements by state regulating agencies that led to the 2012 Prop 218 property owner vote for a new parcel fee. The second proposed revenue measure did not pass. Local assessments for stormwater quality protection have been maxed out since 2000—while compliance costs continue to increase. Additional state legislation is being pursued to establish a process to allow for future local voter consideration of new stormwater revenues.
However, in order to continue to receive the City’s existing current ERU rate of $29 per single family parcel (the same amount levied since FY1999/2000) it must be levied annually. Failure to levy this fee would result in the City supplanting this revenue source (approx. $130,631) from another funding source such as the General Fund, Rainy Day Fund 110, and/or a local city specific revenue measure.
ANALYSIS
As required by the Clean Water Program, this year City staff currently participate on the Clean Water Program's Administration Committee and Management Committee. City staff typically attend and participate in 2-3 meetings per month.
There are no new funds to address the mandated studies and documentation that cities must file as part of their Annual Report to the State. They include mandatory maintenance items such as clearing of trash along specific areas of creeks and drainage inlets; the quantification of the materials collected; enforcement action (issuance of citations) to individuals for pollution runoff; creeks and waterways testing, mapping, monitoring and of all creeks and all outfalls to creeks. The reporting format requires cities to use computer data base for mapping, reporting and monitoring information and transmitting it electronically to the SF Regional Water Board where they will post to a public accessible web site. 21 Overall, the City’s total Stormwater related costs are comprised of two components, one consisting of the pro rata share of Clean Water group costs based upon population. The other is the management and maintenance activities undertaken by the City and its contracts with others for required activity implementation and monitoring and reporting. All program staff and permittees (cities and county) have been and continue to make strong efforts to control costs at the program level. However, the continuing increase in expenses to adhere to the requirements in the MRP 3.0 permit has outpaced the assessment funds which have remained flat for over 25 years.
ASSESSMENT AND PROGRAM BUDGET:
The Group’s Clean Water Program Budget will remain the same as last fiscal year at $4 million in FY 2025/26. For the last few years and through 2023 increased costs were addressed by Program reserve carry over or encumbrances of this year’s funds to help reduce or smooth out increases; thus minimizing the impact (reduction) in return to source funds.
Beginning last year and in future years there will be no further reserve available to reduce the expense borne by each member when the overall program budget increases. The anticipated budget in 2026/2027 is currently expected to remain at $4 million.
For FY 2025/2026 the City of Clayton's pro rata share (based on countywide population) of the Contra Costa Clean Water Program cost was 0.93% ($37,268) of the total annual program budget of $4.0 million. Future program cost increases and lack of carryover/reserve funding in the future years will continue to result in less return to source funds to undertake the added local city permit requirements.
It is currently estimated that for FY 2025/26 the gross revenues from Clayton’s stormwater utility assessment will total approximately $130,631. The City’s SUA Fund (#216) include the following expenditures: $37,268 is allocated to the Clean Water Program administration and group expenses; $3,800 to the County Auditor for costs related to assessment collection; $8,000 to the Sanitary District for commercial inspection, monitoring and municipal requested call out inspections; $3,000 to the District for fiscal and assessment area management, $3,000 for program reserve, and $15,000 for our annual state discharge permit fee. Thus, the remaining return to source funds available to the City, for all other activities in FY 2025/26 is approximately $60,563.
The majority of the remaining return to source funds ($60,653) are directly spent on staff/city engineer labor costs of participating in the Clean Water Program and performing maintenance activities required by the program, such as storm drain inspection and cleaning, creek clearing; responding to spill calls; the remaining is divided between equipment and materials; monitoring and inspection; and management and reporting. In FY 2025/2026 budget adoption it was anticipated that the ending fund balance would be near As required by the Clean Water Program, this year City staff currently participate on the Clean Water Program's Administration Committee and Management Committee. City staff typically attend and participate in 2-3 meetings per month.
There are no new funds to address the mandated studies and documentation that cities must file as part of their Annual Report to the State. They include mandatory maintenance items such as clearing of trash along specific areas of creeks and drainage inlets; the quantification of the materials collected; enforcement action (issuance of citations) to individuals for pollution runoff; creeks and waterways testing, mapping, monitoring and of all creeks and all outfalls to 22 creeks. The reporting format requires cities to use computer data base for mapping, reporting and monitoring information and transmitting it electronically to the SF Regional Water Board where they will post to a public accessible web site.
Overall, the City’s total Stormwater related costs are comprised of two components, one consisting of the pro rata share of Clean Water group costs based upon population. The other is the management and maintenance activities undertaken by the City and its contracts with others for required activity implementation and monitoring and reporting. All program staff and permittees (cities and county) have been and continue to make strong efforts to control costs at the program level. However, the continuing increase in expenses to adhere to the requirements in the MRP 3.0 permit has outpaced the assessment funds which have remained flat for over 25 years.
Since the City will not exceed the current rate cap and not increasing the levy rate, voter approval requirement of the Prop. 218 process does not apply. A single family detached dwelling is typically one ERU; homes on lots 20,000 sq. ft. or larger are allocated 1.7 ERU's; homes (e.g., townhomes and duets) are 0.7 ERU. This formula is the same throughout all Contra Costa communities and all cities.
CEQA
None.
FISCAL IMPACT
Annual authorization by the City Council of the ERU assessment fee is needed for the County Flood Control District to levy this fee each year on the property tax roll for parcels within the City of Clayton boundaries. Denying the assessment will result in the loss of approximately $130,631 of stormwater funding that is used to perform the MRP 3.0 requirements, and the City would need to allocate separate funding to meet its obligations to avoid violations of the Nationwide Pollution Discharge Elimination System; including paying its share toward the Countywide Clean Water program.
ATTACHMENTS
Reso No 05-2026 SUA ERU.pdf
23 24
25 TO: CLAYTON CITY COUNCIL
FROM: Kraig Chalem, Senior Planner
DATE: April 7, 2026
SUBJECT: Acceptance Of The 2025 General Plan Implementation and Housing Element Annual Progress Report
Agenda Item: 4.f
STAFF REPORT
RECOMMENDATION
Adopt Resolution No. 06-2026 accepting the City’s 2025 Housing Element Annual Progress Report (APR) and summary of actions related to implementation of other General Plan policies.
BACKGROUND
Government Code Section 65400 requires the planning agency of each jurisdiction to prepare an annual report on the progress in implementation of the jurisdiction’s general plan and general plan housing element. The report from the jurisdiction’s planning director or staff must be submitted by April 1 of each year to the jurisdiction’s legislative body (city council or board of supervisors), to the State Department of Housing and Community Development (HCD) and to the State Office of Planning and Research (OPR).
HCD uses the APR as a tool to facilitate implementation of a community’s housing element as well as for the tracking and monitoring of progress in addressing statewide housing needs and goals. Jurisdictions must report the number of residential units in all pending development applications, the number of housing units approved or entitled, and the number of housing units with building permits issued or final inspections (certificates of occupancy) granted for the reporting calendar year.
The APR includes information on a jurisdiction’s progress toward addressing its Regional Housing Needs Allocation (RHNA), including the number of housing units permitted by income level (number of building permits issued), the status of programs in the housing element as adopted on January 17, 2023, (amended in August 2025 in response to formal and informal HCD comments), and efforts to remove government constraints. HCD also uses the submittal of the report as one of its threshold requirements for local public agencies to qualify for certain State grants or program funds.
This Agenda report and the attached Resolution also summarize actions taken by the City during the calendar year 2025 with respect to other policies in the Clayton General Plan. 26 ANALYSIS
This report for the City of Clayton covers the calendar year of January 1 to December 31, 2025. In that timeframe, the Council considered various actions that relate to adopted policies of the Clayton General Plan and adopted Housing Element for the current 6th housing cycle.
The City’s Capital Improvement Program (CIP) was adopted June 3, 2025, by Resolution Authorizing the City of Clayton’s Five-Year Capital Improvement Plan for Fiscal Years 2024-25 Through 2028-29 and include a list of appropriations for various infrastructure projects.
The City’s 6th Cycle Housing Element spans the period from 2023 to 2031, with numerous programs scheduled for implementation during the subsequent years of the reporting period.
To date, the City has made notable progress in advancing several housing programs within the initial two years of the planning period.
Throughout 2025, City staff continued implementing Housing Element programs, such as Housing Element Program A1 to preserve the existing housing stock in good condition. Code Enforcement staff opened 45 cases based on complaints of maintenance at residential properties including overgrown vegetation, junk/debris, and improper storage of recreational vehicles and/or trailers of any type. Of those 45 cases, 44 were closed within the year.
The 2025 APR also acknowledges affordable and market-rate housing units permitted within the calendar year with one (1) ADU issued a building permit. Additionally, in August the City passed a resolution updating the Housing Element to allow for “Junior” ADUs.
CEQA
Acceptance of and authorization to submit the General Plan Annual Progress Report is not a “project” as that term is defined in section 15378 of the state Guidelines for Implementation of the California Quality Act (CEQA Guidelines, California Code of Regulations section 15000 et seq), and therefore, CEQA does not apply to this action.
FISCAL IMPACT
There are nominal costs related to staff time and printing costs associated with the filing of this report.
ATTACHMENTS
Reso No. 06-2026 Approving-2025_APR.pdf
27 Resolution No. 6-2025 Page 1 of 3 April 7, 2026
RESOLUTION NO. 6-2026
A RESOLUTION APPROVING THE CITY OF CLAYTON
2025 GENERAL PLAN IMPLEMENTATION SUMMARY AND
HOUSING ELEMENT ANNUAL PROGRESS REPORT
THE CITY COUNCIL
City of Clayton, California
WHEREAS, Government Code Section 65400 requires the Planning Agency of the City of Clayton, California, to prepare an annual report on the City’s progress in implementing its General Plan and Housing Element using forms and definitions adopted by the California Department of Housing and Community Development (HCD); and WHEREAS, during the reporting period of January 1 through December 31, 2025, the City Council considered actions that relate to adopted General Plan policies. The City’s Capital Improvement Program (CIP) was adopted June 3, 2025, by Resolution Authorizing the City of Clayton’s Five-Year Capital Improvement Plan for Fiscal Years 2024-25 Through 2028-29 and include a list of appropriations for various infrastructure projects.
WHEREAS, the 2025 Housing Element Annual Progress Report (APR) includes information on the City of Clayton’s progress in addressing its assigned Regional Housing Needs Allocation, including the total number of dwelling units submitted as part of development applications, the number of housing units entitled, the number of housing units by income level for which a building permit was issued or finalized, the status of program implementation, and efforts to remove governmental constraints for the reporting period; and WHEREAS, the City’s 6th Cycle Housing Element spans the period from 2023 to 2031, with numerous programs scheduled for implementation during the subsequent years of the reporting period. To date, the City has made progress in advancing housing programs within the initial three years of the planning period. The City continued its efforts in 2025 to permit construction of ADUs on existing developed residential properties. The City’s updated ADU Ordinance codified in Clayton Municipal Code chapter 17.47 aligns with current California ADU legislation (Housing Element Program B1: Accessory Dwelling Units). Additionally, City staff continued implementing Housing Element programs, such as Housing Element Program A1 to preserve the existing housing stock in good condition. Code Enforcement staff opened 45 cases based on complaints of maintenance at residential properties including overgrown vegetation, junk/debris, and improper storage of recreational vehicles/ trailers of any type. Of those cases, 44 were closed within the year; and
WHEREAS, the 2025 APR also acknowledges affordable and market-rate housing units permitted in the City during the reporting period. One (1) ADU issued building permits; and
WHEREAS, at a public meeting held on April 7, 2026, the Clayton City Council considered the City’s General Plan implementation report and Housing Element APR for 28 Resolution No. 5-2026 Page 2 of 3 April 7, 2026
2025, including the Agenda Report and all other public comments and discussion thereon, and determined both reports to be satisfactory and acceptable for submittal to HCD and to the State Office of Planning and Research.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Clayton, California, does hereby accept the 2025 report on General Plan implementation and the 2025 Housing Element Annual Progress Report, a copy of which is attached hereto labeled as Exhibit A and incorporated herein as if fully set forth.
PASSED, APPROVED AND ADOPTED by the City Council of Clayton, California, at a regular public meeting thereof held on the 7th day of April 2026, by the following vote:
AYES: Councilmembers:
NOES: None.
ABSENT: None.
ABSTAIN: None.
THE CITY COUNCIL OF CLAYTON, CA
Jeff Wan, Mayor
ATTEST:
Leticia I. Miguel, City Clerk
29 TO: CLAYTON CITY COUNCIL
FROM: Leticia Miguel, City Clerk
DATE: April 7, 2026
SUBJECT: Presentation of a Proclamation Recognizing March 2026 as American Red Cross Month
Agenda Item: 5.a
STAFF REPORT
BACKGROUND
.
CEQA
CEQA: This proposed action is not a project as defined by CEQA.
FISCAL IMPACT
No fiscal impact associated with this agenda item.
ATTACHMENTS
PROC Red Cross 20260407.pdf
30 declaring
March 2026
as
“Red Cross Month”
WHEREAS, March is American Red Cross month, when we recognize the compassion of people in the City of Clayton and renew our commitment to lend a helping hand to our neighbors in need; and WHEREAS, American Red Cross volunteers have stepped up to deliver relief and care across our country and around the world, bringing out the best of humanity in times of crisis as Clara Barton, founder of the American Red Cross, did over 140 years ago; and WHEREAS, the volunteers, blood and platelet donors, and supporters shine a beacon of hope in people‛s darkest hours —delivering shelter, food and comfort during disasters; providing critical blood donations for hospital patients; supporting service members, veterans and their families; saving lives with first aid, CPR, AED and other skills; or delivering international aid and reconnecting loved ones separated by global crises; and
WHEREAS, with 1148 volunteers in Contra Costa County, the American Red Cross assisted or responded to 101 disasters, assisting 190 families; and through our Sound the Alarm program, the American Red Cross installed 778 smoke alarms, making 241 homes safer, and trained 425 students through the Youth Preparedness Programs; and
WHEREAS, Contra Costa County residents donated 18,299 units of lifesaving blood; hosted 530 blood drives; and trained 12,164 citizens in first aid, CPR, AED, and aquatics; and provided 463 case services to military members and their families; and provided humanitarian aid internationally; and WHEREAS, this work to uplift our community is made possible by those who selflessly answer the call to help, whenever and wherever it is needed. We hereby recognize this month of March in honor of their remarkable service, and we ask everyone to join in their commitment to care for one another.
NOW, THEREFORE, I, Jeff Wan, of on behalf of the Clayton City Council, do hereby proclaim March 2026 as Red Cross Month. I encourage all citizens of Clayton to reach out and support its humanitarian mission.
31 IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Clayton to affixed this 7th day of April, 2026.
32 TO: CLAYTON CITY COUNCIL
FROM: Kris Lofthus, City Manager
DATE: April 7, 2026
SUBJECT: Presentation of a Proclamation Honoring Contra Costa County Fire Protection District Chief Lewis Broschard for His Service, Leadership and Dedication to the Community Upon His Retirement
Agenda Item: 5.b
STAFF REPORT
BACKGROUND
//
FISCAL IMPACT
//
ATTACHMENTS
Proc - Chief Broschard.pdf
33 WHEREAS, Fire Chief Lewis Broschard has dedicated more than eighteen years of exemplary service to the Contra Costa County Fire Protection District, demonstrating unwavering commitment to public safety, leadership, and the well-being of the residents of Contra Costa County; and WHEREAS, Chief Broschard has served with distinction, earning the respect and trust of the community, the Board of Supervisors, the County Administrator‛s Office, and the men and women of the Fire District; and WHEREAS, during his tenure as Fire Chief, the District experienced significant organizational and operational advancements, including the annexation of the East Contra Costa Fire Protection District and the Rodeo-Hercules Fire Protection District, establishing a contract for service with the City of Pinole and provided leadership to reinstitute Fire Station 11 in the City of Clayton; and WHEREAS, Chief Broschard championed critical initiatives to strengthen emergency response capabilities, including the establishment of a firefighting hand crew program, the launch of a seasonal aerial firefighting helicopter program, the implementation of an apparatus replacement program, and increased staffing in both operations and fire prevention; and
WHEREAS, Chief Broschard championed critical initiatives to strengthen emergency response capabilities, including the establishment of a firefighting hand crew program, the launch of a seasonal aerial firefighting helicopter program, the implementation of an apparatus replacement program, and increased staffing in both operations and fire prevention; and
WHEREAS, under his leadership, the District undertook the rebuilding of fire stations, expanded and modernized the regional fire dispatch center, increased 911 dispatcher staffing, strengthened and expanded ambulance services, and introduced numerous health and wellness initiatives for personnel; and WHEREAS, Chief Broschard played a vital role in advancing wildfire preparedness and resilience through significant mitigation projects and the formation of more than forty Firewise communities; and WHEREAS, the District achieved a substantial improvement in its Insurance Services Office (ISO) rating, reaching a uniform Class 2/2Y rating, reflecting enhanced service quality and protection for residents; and WHEREAS, Chief Broschard has led with integrity and professionalism through complex operational challenges, historic wildfire seasons, and a period of remarkable growth, always prioritizing the safety of both residents and 34 fire personnel; and
WHEREAS, his retirement on March 30, 2026, marks the conclusion of a distinguished career and the beginning of a well-deserved new chapter;
NOW, THEREFORE, BE IT PROCLAIMED, that the City of Clayton hereby honors and recognizes Fire Chief Lewis Broschard for his outstanding service, leadership, and dedication to the community; and BE IT FURTHER PROCLAIMED that we extend our deepest gratitude and appreciation to Chief Broschard and congratulate him on his retirement, wishing him continued health, happiness, and fulfillment in the years ahead. 35 TO: CLAYTON CITY COUNCIL
FROM: Kris Lofthus, City Manager
DATE: April 7, 2026
SUBJECT: City Beautification and Project Update
Agenda Item: 5.c
STAFF REPORT
BACKGROUND
//
FISCAL IMPACT
//
ATTACHMENTS
CITY BEAUTIFICATION AND PROJECT UPDATE.pdf
36 CITY BEAUTIFICATION
AND PROJECT UPDATE
TUESDAY, APRIL 7, 2026
37 1.Overview of where we are
2.Weed abatement in landscaped areas
3. Weed abatement fire protection
4. General updates to landscaped areas
5. Roadway improvements
6.Upcoming major projects
38 • Weed abatement completed to this point
• Clayton Road from Clayton Station to Fire Station 11
• Current Work
• Marsh Creek Road from Regency to the City limit
• Hillside adjacent to Mount Diablo Elementary
• Peacock Creek
• In the coming weeks
• Oakhurst Drive
• Trail edges
• Open space adjacent to residences
• Interior street medians
WEED ABATEMENT
39 • Completion date of June 1, 2026 – per Contra Costa Fire Protection District
• All City owned parcels to create designated fire break prior to deadline
WEED ABATEMENT – Fire Protection
40 • Grass replacement in The Grove Park
• Peacock Creek
• Replaced irrigation in the median
• Removed dead vegetation and weeds
• Replanting this spring and fall
• Fence repair in the downtown
• Tree trimming throughout the community is ongoing
• Tree trimming on the trails as started
GENERAL IMPROVEMENTS
41 • 143 Segments of curb painting
• 12 street name signs
• 38 segments of Botts Dots
• 65 blue reflectors – fire hydrant
• 15 roadway markings (limit lines, crosswalks)
• 17 faded or damaged road signs
GENERAL IMPROVEMENTS - Upcoming
42 • New contract for pothole repair
• Pavement Project Summer/Fall 2026
• Design near completion
• Bidding will be completed by mid-May
• Contract to City Council June 2
• Paving to be completed Fall 2026
ROADWAY IMPROVEMENTS
43 Streets to be repaired1. Marsh Creek Rd between El Molino Dr and Cayton Rd (south)
2. Mountaire Parkway between Marsh Creek Rd and Mountaire Circle (south) with ROAD DIET STRIPING
3. Herriman Drive between Mitchell Canyon Rd and Tiffin Dr
4. N. Mitchell Canyon Road between Cayton Rd and northern END
5. Eagle Peak Avenue between Oakhurst Dr (east) to Keller Ridge Dr
6. El Portal Drive between Regency Dr and El Pueblo Pl
7. Main Street between Oak St and Marsh Creek Rd
ROADWAY IMPROVEMENTS
44 • Downtown Pedestrian Improvements
• Raised and rectangular rapid flashing beacon (RRFB) system to be located on Oak Street In the east/west direction north of Center Street.
• A tabletop or raised intersection at Marsh Creek Road and Main Street.
• Raised crosswalk on Morris St and Center St (east) with RRFB. • Project is 90% designed
• Will be assigned to the new PW Director
Major Projects
45 • Pedestrian Improvement
• Install ADA accessible pathway between Four Oaks Ln.
and Pine Hollow
• 60% Design Complete
• Measure J funds and TDA Grant funded
• Cardinet Trail Repair
• Assigned to Engineer, design has started
Major Projects
46 TO: CLAYTON CITY COUNCIL
FROM: Kris Lofthus, City Manager
DATE: April 7, 2026
SUBJECT: City Manager's Report
Agenda Item: 6.a
STAFF REPORT
BACKGROUND
Does not apply to this item
FISCAL IMPACT
Does not apply to this item
47 TO: CLAYTON CITY COUNCIL
FROM: Leticia Miguel, City Clerk
DATE: April 7, 2026
SUBJECT: City Council/Committees Reports
Agenda Item: 6.b
STAFF REPORT
BACKGROUND
The City Council provides a report of activities that took place between the city council meetings.
CEQA
This item is not a project as defined by CEQA.
FISCAL IMPACT
No fiscal impact associated with this agenda item.
ATTACHMENTS
City Council Committees Reports 20260407
48 City Council/Committees Reports April 07, 2026
Jim Diaz, Councilmember
• 03-06-2026: Attended / Chaired the Operations and Scheduling Committee Meeting, County Connection.
• 03-07-2026: Attended County Connection Bus Roadeo and Competition Event. • 03-14-2026: Attended 44th Annual Sheriff’s Charity Ball. • 03-17-2026: Observed St. Patrick’s Day.
• 03-17-2026: Meeting with City Manager.
• 03-18-2026: Meeting with Chief of Police.
• 03-19-2026: Attended County Connection Board Meeting. • 03-20-2026: Attended East Bay Regional Communications System Authority (EBRCSA) Board Meeting.
• 03-22-2026: Attended Grand Opening of K-One Music in Richmond. • 03-24-2026: Attended Clayton “Unsung Heroes” Event.
• 03-30-2026: Meeting with Clayton Community Services Coordinator.
Meeting with Clayton Director of Administrative Services. • 04-02-2026: Attended Mayor’s Conference - Concord.
• 04-03-2026: Attended / Chaired Operations & Scheduling Committee Meeting – County Connection.
• 04-05-2026: Observed Easter.
• 04-07-2026: Meeting with City Manager.
49 City Council/Committees Reports April 07, 2026
Holly Tillman, Councilmember
• 2/26- I attended the Keller Ridge Firewise meeting with Inspector Berumen where he provided guidance on the new fire maps and 3 important things homeowners can do now. We need to focus on the Zone 0 defensible space which is from zero to 5ft from the home and clear all combustible material from this area (no plants, bushes, or tan bark against the home) and replace with rock or cement. Limb trees away from house and at least 6 ft above the nearest bush/vegetation and install gutter guards and vents around the home.
• 3/5 - I attended the Mayors Conference hosted by the City of Hercules • 3/7 - I attended and helped kick off the first CoCo County Pride Summit. The purpose of this gathering was to establish initial relationships among LGBTQ+- affiliated organizations in Contra Costa County, build mutual understanding, and lay the groundwork for ongoing communication, collaboration, and shared support of our community. The event was a success, and our next meeting will be held on July 11, 2026.
• Later that evening I attended the Network of Care 20th Annual Crab Feed with other former Clayton mayors and council members.
• 3/9 - I attended the MDEDF Board meeting.
• 3/10 - Clayton Pride Board Meeting. Our 5th Annual Clayton Pride Parade and Festival will be held on Sunday, May 31, 2026 in Downtown Clayton. Everyone is invited to attend. This year’s theme is Just Love, No Label. Entry forms can be found at our website at https://claytonpride.com/ for more information. • 3/16 - Trails and Landscape Committee Meeting at 6:30 pm, Hoyer Hall • 3/19 – Attended a community meeting at Oakhurst Country Club with ConFire Captain Ottolini to discuss the fire maps and learn more about fire prevention. This event was organized by resident Deborah Gong, a Keller Ridge Firewise neighbor.
Thank you so much Deborah and Oakhurst for allowing us to use the space! • 3/23 - Keller Ridge Firewise 2026 Kick-off meeting. We planned 2026 activities, formed committees, and are developing a Keller Ridge calendar. The meeting was hosted by Ken Studer who can be reached at [email protected] to join the mailing list and attend future meetings and events.
50 City Council/Committees Reports April 07, 2026
Kim Trupiano, Councilmember
• Weekly meetings with City Manager, Kris Lofthus
• Working on sponsorships and marketing for City Sponsored Events • Numerous emails and discussions with residents about Olivia Project, Trail Repair, Sales Tax and LMD (renewal), landscaping, Clayton Club Saloon, library refresh and housing element
• March 3rd, Executive Committee Board Meeting, Clayton Community Library Foundation
• March 5th, Budget & Audit committee meeting, 2026 Budget Status, 2027 Budget Revisions, Reserve Strategy
• March 24th, League of Cal Cities, New Bill Briefing Webinar • March 24th, Pizza Party for 2025 Unsung Heroes
• March 26th, 4th of July parade planning meeting, Chris Karney and Sarah Brinkman • March 31st, Meeting with Republic Services
51 City Council/Committees Reports April 07, 2026
Richard G Enea, Vice Mayor
• Met with City Manager
• Attended my Black Diamond HOA meeting.
• Attended the TRANPAC ( county transportation committee meeting) • Attended the trail/landscape committee meeting.
• Attended the Italian American dinner/meeting.
• Attended the Elks Club dinner/meeting.
• Attended the City pizza lunch for our unsung heroes.
• Attended the CBCA meeting
• Attended the Black Diamond HOA exec. Board meeting
• Met with residents/also phone calls regarding city issues , including the Jordan/ Olivia project, the closing of the Subway Sandwich shop 52 TO: CLAYTON CITY COUNCIL
FROM: Kraig Chalem, Senior Planner
DATE: April 7, 2026
SUBJECT: Introduce An Ordinance Amending The Clayton Municipal Code Subsection
17.36.079 To Chapter 17.36 (General Regulations) Of Title 17 (Zoning) To Add Specific Language Allowing Certain Affordable Housing By-Right And Defining By-Right
Agenda Item: 7.a
STAFF REPORT
RECOMMENDATION
That the City Council of the City of Clayton:
Introduce Ordinance No. 503 amending the Clayton Municipal Code subsection
17.36.079 to Chapter 17.36 of Title 17 to state that developments Identified to accommodate the Regional Housing Needs Allocation shortfall and meeting affordable housing requires pursuant to Government Code section 65583.2(c), (h), and (i), are allowed by right and defining by right,
Conduct a Public Hearing, accept written and spoken testimony, and Close the public hearing.
BACKGROUND
On January 17, 2023, the Clayton City Council adopted the Housing Element Update (HEU) for the 6th Housing Cycle, approved in December 2022. Following the public hearing, the City Council adopted Resolution No. 06-2023 certifying the Final Environmental Impact Report (EIR) prepared for the project and adopting the update to the Housing Element and the associated Land Use Element and Land Use Diagram amendments. City Council Resolution No. 06-2023 (as well as the Planning Commission Resolution No. 04-2022) recommending adoption of the General Plan amendments. At its January 16, 2024, meeting, the City Council adopted amendments to Clayton Municipal Code Title 17 (Zoning) to implement certain adopted Housing Element policies.
The HEU and zoning amendments were forwarded to the State Housing and Community Development Agency (HCD) for certification process by the Agency. The correspondence between the City and HCD has been ongoing for that certification resulting in HCD’s returning with required amendments. Which has resulted in two previous amendments supporting multifamily housing where at least 20% of the units are deed-restricted affordable units (including junior accessory dwelling units); and any multifamily housing that complies with all 53 objective development and design standards are allowed by right. Staff had thought that all issues had been resolved and followed up by submitting these amendments to HCD for certification. Since the last request for certification in January of 2026, HCD requested three additional provisions be added.
DISCUSSION
As noted above, HCD has requested additional amendments to the City municipal code regarding entitlements, which staff seeks to satisfy by amending Chapter 17.36. Specifically, HCD recommends adding that, per Government Code section 65583.2(c), (h), and (i), sites identified to accommodate a shortfall for the lower income housing identified in program D2 of the housing element shall be an allowed residential use where at least twenty percent of the units are affordable to lower income households; minimum densities and residential requirements shall prevail over other allowed uses in the district; and, the term, “by-right” be defined in the municipal code.
At the Planning Commission on March 31, 2026, staff recommended the Planning Commission adopt Resolution 07-2026 which recommends that the City Council review and approve the Municipal Code amendments to include the following bullet points, and satisfy HCD’s requirements, that:
per Government Code section 65583.2(c), (h), and (i) the Clayton Municipal Code reflects sites identified to accommodate a shortfall for the lower income housing identified in program D2 of the housing element be allowed where at least twenty percent of the units are affordable to lower income households; and, per Government Code section 65583.2(c), (h), and (i) minimum densities, and residential requirements shall prevail over regulations and allowed uses of the zoning district; and, the term “by-right” shall mean that the City's review of the project may not require a discretionary local government review or approval that would constitute a “project” under the California Environmental Quality Act as defined in Government Code Section 65583.2.
ANALYSIS
To effectuate this proposed change, staff recommend amending Chapter 17.36 (General Requirements) of Title 17 (Zoning) by adding subchapter 17.36.079 as follows:
17.36.079 - Housing Element Opportunity Sites.
Pursuant to Government Code section 65583.2(c), a non-vacant site that has been identified as a housing opportunity site in the City’s prior housing element and a vacant site that has been included in two or more consecutive housing element planning periods shall be an allowed residential use by right for housing developments where at least twenty percent of the units are affordable to lower income households. In addition, pursuant to Government Code section 65583.2(c), (h), and (i), sites identified to accommodate a shortfall for the lower income RHNA identified in program D2 of the housing element shall be an allowed residential use by right for housing developments where at least twenty percent of the units are affordable to lower income households. Requirements pursuant to Government Code section 65583.2(c), (h), and (i), including minimum densities and residential requirements, shall prevail over 54 regulations and allowed uses of the base zone. Pursuant to Government Code section 65583.2(i), the development shall comply with all objective development standards, and a proposed subdivision of the property shall be subject to all applicable laws. If applicable, such projects shall be subject to design review. By-right" shall mean that the City's review of the project may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” under the California Environmental Quality Act as defined in Government Code Section 65583.2.
CEQA
In accordance with the California Environmental Quality Act and the State CEQA Guidelines Section 15061(b)(3), which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The Zoning amendment as summarized above is within the scope of a non-project action.
FISCAL IMPACT
There are no immediate fiscal impacts associated with the project.
ATTACHMENTS
ATT A - Clayton Planning Commission Resolution for HE- Code Further Amendment.docx ATT B - Ordiance No. 503 Amending Title 17.pdf
55 [Type here] [Type here] ATTACHMENT A
RESOLUTION NO. 4-2026
A RESOLUTION OF THE PLANNING COMMISSION RECOMMENDING
THE CITY COUNCIL APPROVE ORDINANCE 503 AMENDING THE
CLAYTON MUNICIPAL CODE TO AMEND SUBSECTION 17.36.079 TO CHAPTER 17.36 (GENERAL REGULATIONS) OF TITLE 17 (ZONING)
RELATED TO BY RIGHT AFFORDABLE HOUSING OF CERTAIN
HOUSING ELEMENT OPPORTUNITY SITES
City of Clayton, California
WHEREAS, on January 17, 2023, the Clayton City Council adopted the Housing Element Update (HEU) for the 6th Housing Cycle, approved in December 2022.;” and, WHEREAS, on January 16, 2024, meeting, the City Council adopted amendments to Clayton Municipal Code Title 17 (Zoning) to implement certain adopted HousingElement policies; and,
WHEREAS, the HEU and zoning amendments were forwarded to the State Housing and Community Development (HCD) Agency for certification process by the Agency; and,
WHEREAS, HCD requested additional amendments to the zoning code required by state law noting entitlements for multifamily development; and, WHEREAS, City Staff has resolved all issues with HCD except for an amendment to the zoning code regarding entitlements for multifamily development as shown in the code amendment; and,
WHEREAS, California Government Code section 65854 requires that the Planning Commission, in its capacity as an advisory body to the City Council on matters of land use, hold a duly noticed public hearing on a proposed zoning ordinance or amendment to a zoning ordinance; and,
WHEREAS, CMC section 17.56.060 gives authority to the Planning Commission to make recommendations to the City Council on proposed amendments to CMC Title 17 and states further that "[n]o recommendation for amendment shall be made unless the Planning Commission finds that such proposed amendment, is in general conformance with the General Plan, if one be in effect at said time, and that the public necessity, convenience and general welfare require the adoption of the proposed amendment;" and, WHEREAS, on March 31, 2026, the Planning Commission held a duly noticed public hearing and adopted Resolution No. 04-2026 recommending amendments to CMC Title 17.36 as requested by HCD be approved by the City Council.
NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission of the City of Clayton, California, does hereby recommend that the City of Clayton City Council approve the attached ordinance amending the Clayton Municipal Code to amend Section 56 Attachment ‘A’ - Resolution No. 4-2026
17.36.079 to Chapter 17.36 (General Regulations) of Title 17 (Zoning); Related to Affordable Housing and the Definition of By Right.
PASSED, APPROVED AND ADOPTED by the Planning Commission of the City of Clayton, California, at a regular public meeting thereof held on the 31st day of March 2026, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
APPROVED: ATTEST:
Daniel Richardson, Chair Leticia I. Miguel, City Clerk
57 ORDINANCE NO. 503
AN ORDINANCE AMENDING THE CLAYTON MUNICIPAL CODE
TO AMEND SUBSECTION 17.36.079 TO CHAPTER 17.36
(GENERAL REGULATIONS) OF TITLE 17 (ZONING) RELATED
TO CERTAIN RESIDENTIAL DEVELOPMENT BY RIGHT FOR
SPECIFIC AFFORDABLE HOUSING AND DEFINING BY RIGHT
AS IT RELATES TO CERTAIN AFFORDABLE HOUSING
THE CITY COUNCIL
City Of Clayton, California
The City Council of the City of Clayton DOES ORDAIN as
follows: Section 1. Recitals
WHEREAS, on January 17, 2023, the Clayton City Council adopted the Housing Element Update (HEU) for the 6th Housing Cycle, approved in December 2022.; and, WHEREAS, on January 16, 2024, meeting, the City Council adopted amendments to Clayton Municipal Code Title 17 (Zoning) to implement certain adopted Housing Element policies; and,
WHEREAS, the HEU and zoning amendments were forwarded to the State Housing and Community Development (HCD) Agency for certification process by the Agency; and,
WHEREAS, HCD requested additional amendments to the City of Clayton Municipal Zoning Code pertaining to certain affordable housing development; and, WHEREAS, City Staff has resolved these issues with HCD except for an amendment to the zoning code regarding entitlements for certain affordable housing development as shown in the code amendment; and,
WHEREAS, California Government Code section 65854 requires that the Planning Commission, in its capacity as an advisory body to the City Council on matters of land use, hold a duly noticed public hearing on a proposed zoning ordinance or amendment to a zoning ordinance; and,
WHEREAS, CMC section 17.56.060 gives authority to the Planning Commission to make recommendations to the City Council on proposed amendments to CMC Title 17 and states further that "[n]o recommendation for amendment shall be made unless the Planning Commission finds that such proposed amendment, is in general conformance with the General Plan, if one be in effect at said time, and that the public necessity, convenience and general welfare require the adoption of the proposed amendment;" and, WHEREAS, on March 31, 2026, the Planning Commission held a duly noticed public hearing and adopted Resolution No. 04-2026 making amendments as requested by HCD and recommending that the City Council approve the proposed amendments to CMC Title 17.36; and, 58
WHEREAS, on April 7, 2026, the Clayton City Council conducted a public hearing on the amendments to CMC Title 17.36 (Zoning) and at that public hearing, received and considered the Planning Commission recommendation and other public testimony and evidence, both spoken and written.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CLAYTON DOES ORDAIN AS FOLLOWS:
Section 2. Findings. In accordance with CMC section 17.56.100, the City Council makes the following findings:
Based on the information in 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, identified in program D2 of the housing element; specifically, 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 facilitate construction of multi-family housing while complying with state law.
Section 3. Zoning Ordinance Amendment
Based on the findings and the authority set forth above, the City Council hereby amends Chapter 17.36 (General Regulations) of Title 17 (Zoning) of the Clayton Municipal Code subsection 17.36.079, as follows (additions are in underline):
17.36.079 - Housing Element Opportunity Sites.
Pursuant to Government Code section 65583.2(c), a non-vacant site that has been identified as a housing opportunity site in the City’s prior housing element and a vacant site that has been included in two or more consecutive housing element planning periods shall be an allowed residential use by right for housing developments where at least twenty percent of the units are affordable to lower income households. In addition, pursuant to Government Code section 65583.2(c), (h), and (i), sites identified to accommodate a shortfall for the lower income RHNA identified in program D2 of the housing element shall be an allowed residential use by right for housing developments where at least twenty percent of the units are affordable to lower income households. Requirements pursuant to Government Code section 65583.2(c), (h), and (i), including minimum densities and residential requirements, shall prevail over regulations and allowed uses of the base zone. Pursuant to Government Code section 65583.2(i), the development shall comply with all objective development standards, and a proposed subdivision of the property shall be subject to all applicable laws. If applicable, such projects shall be subject to design 59 review. By-right" shall mean that the City's review of the project may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” under the California Environmental Quality Act as defined in Government Code Section 65583.2.
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 of 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. Environmental Review.
This Ordinance is not a project or alternatively is exempt from CEQA pursuant to the commonsense exemption (Guidelines §15061(b)(3)) because there is no possibility the action may result in a significant effect on the environment. The Zoning code is within the scope of a non-project action.
Section 6. Effective Date and Publication.
This ordinance shall become effective thirty (30) days from and after its passage.
Within fifteen (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 (3) 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 Clayton, California held on the 7th day of April 2026, and PASSED, ADOPTED AND ORDERED posted by the City Council of Clayton, California at a regular public meeting thereof on April 21st, 2026, by the following vote:
AYE:
NAY:
ABSEN:
ABSTAIN:
60 THE CITY COUNCIL OF CLAYTON, CALIFORNIA
Jeff Wan, Mayor
ATTEST:
Leticia I. Miguel, City Clerk
APPROVED AS TO FORM:
Malathy Subramanian, City Attorney
APPROVED BY ADMINISTRATION
Kris Lofthus, City Manager
61 TO: CLAYTON CITY COUNCIL
FROM: Dennis Bozanich
DATE: April 7, 2026
SUBJECT: Review FY26 Budget Status, Consider Approval of FY27 Budget Revisions and Reserve Options
Agenda Item: 8.a
STAFF REPORT
BACKGROUND
The City of Clayton remains fiscally stable with strong reserve levels and a clean FY25 audit.
The FY26 General Fund is projected to end the year with a deficit of $950,000 and an ending fund balance of approximately $6.0 million.
The recommended FY27 Adjusted Budget reduces the originally adopted structural deficit from $667,349 to $345,113, a reduction of approximately 48%. While reserves remain well above the policy minimum, structural deficits are projected to increase in the out-years without corrective action.
CEQA
No impacts
FISCAL IMPACT
The Council's action will consider impacts and adopt budget revisions and provide guidance to staff on the use of fund balances.
DISCUSSION
FY 2025–26 General Fund Status
The FY 2025–26 General Fund is projected to end the year with an approximate deficit of $952,000, primarily due to revenue shortfalls and one-time expenditure increases.
FY 2026–27 Budget Revisions
Staff recommends budget adjustments that reduce the projected deficit from $667,349 to $345,113, primarily through expenditure reductions and updated revenue assumptions.
Fund Balance and Reserves
62 The City’s General Fund reserves remain strong, with projected ending balances significantly above policy minimums.
Budget Augmentation Options
Staff has identified one-time and ongoing funding requests for Council consideration, including infrastructure, public safety, and service level enhancements.
CONCLUSION
The City remains financially stable, but continued attention to structural balance will be necessary to maintain long-term fiscal sustainability.
ATTACHMENTS
ATT A - FY26 and FY27 Budget Updates and Reserve Analysis.pdf ATT B - FY27 Adopted and Recommended Adjusted Budget Detail.pdf ATT C - FY27 Budget Revisions.pdf
63 FY26 Budget Status, FY27 Budget
Revisions and FY25 Fund Balance
Analysis & Options
City of Clayton
City Council
April 7, 2026
64 Overview
Provide City Council and residents with:
• Budget status update for the FY26 Year to Date & Year-end • Proposed Budget Revisions for FY27
• Status of fund balance/reserves
• Options for FY27 Budget augmentations
• Recommended actions:
• Review the FY26 year-end projection,
• Approve FY27 Budget Adjustments, and
• If needed, provide direction on FY27 reserve-funded Budget Augmentations using Attachment E process we used at last years Budget Hearing 65 FY26 Adjusted General Fund (GF) Budget Summary
FY26 Adopted FY26 Adjusted FY26 Y-T-D
(3/31/2026)
FY26 EOY
(estimated)
07/01/25 Fund Balance $ 6,964,805* $ 6,964,805* $ 6,964,805* $ 6,964,805* Revenue
Revenue 6,177,168 6,208,885 3,351,000 5,708,885
Total Revenue 6,177,168 6,208,885 3,351,000 5,708,885
Expenditures
Salaries and Benefits 4,425,693 4,301,381 3,485,662 4,410,690 Services and Supplies 1,888,861 2,137,504 1,837,243 2,250,397 Total Expenditures 6,320,054 6,438,885 5,322,905 6,661,087 Revenues less expenses (130,886) (230,000) (952,202)
06/30/26 Fund Balance $ 6,964,805 $ 6,754,805 TBD $ 6,012,603 * Audited Fund Balance
66 FY26 Major Variance Drivers
• General Fund Revenue Variance from Adjusted Budget = -$495,000 • - $175K in RPTTF ($495K v. $320K)
• - $35K in water well charges
• - $285K Fiduciary Fund Transfer (SA, Streetlights and Stormwater) •General Fund Expenditures Variance from Adjusted Budget = +$421,000 • +$151K of one-time for website development + subscription costs (CC-approved) • +$80K of unbudgeted engineering services (CC-approved) • +$80K of Police overtime to cover vacancies
• +$43K on electricity
• +$67K of additional water (irrigation) costs for CCP
67 FY27 Adopted GF Budget w/ Suggested Revisions
FY27 Adopted FY27 Adjusted -
Recommended
Difference - Adopted
to Adjusted
Revenue
Revenue 5,901,449 5,873,013 (28,436)
Total Revenue 5,901,449 5,873,013 (28,436)
Expenditures
Salaries and Benefits 4,604,081 4,413,692 (190,389)
Services and Supplies 1,964,717 1,804,434 (160,283)
Total Expenditures 6,568,798 6,218,126 (350,672)
Revenues less expenses (667,349) (345,113)
68 FY27 Recommended Revisions
• General Fund
• Some revenue sources are no longer available
• Revenue growth rate is lower than anticipated
• Re-org of positions is creating ongoing savings but costs are increasing • IT subscription costs lower due to switch to CivicPlus • LMD & Other Special Revenue Funds
• All FY27 Special Revenue Funds will continue to be balanced • Budget changes to keep these funds balanced for FY27 are minimal 69 Year End Reserves
General Fund LMD Other Special Revenue
Funds
FY21 Fund Balance $ 6,108,981 $ 1,085,886 $ 10,102,813
FY22 Fund Balance $ 6,413,357 $ 638,533 $ 10,141,950
FY23 Fund Balance $ 7,744,099 $ 477,587 $ 9,350,556
FY24 Fund Balance $ 7,467,481 $ 424,342 $ 10,254,201
FY25 Fund Balance $ 6,964,805 $ 355,072 $ 10,578,234
70 Project Purpose 1x Cost
Sidewalk Safety Program Study to identify and prioritize sidewalk trip/fall hazards $100,000 Library exterior paint Maintain the exterior surfaces $125,000 Expand Baseball Fields Less with partnerships $500,000
PD Tech & Officer Safety Firearms, tactical gear, mobile data for low mileage police vehicle $32,000 Endeavor Hall Sign For the corner of Oak & Center $8,000 Grove & CCP Cameras Five-year service contract w/ purchase of 8 cameras $64,800 City Hall Security Update City Hall currently does not have emergency monitoring or response $75,000 Geographic Info System Already in CIP, but urgently need contractor to collect/organize layers $18,000 FY26 Estimated Deficit Balance budget $952,202
FY27 Estimated Deficit Balance budget $345,113
FY28 Estimated Deficit Balance Budget $476,578
FY27 Reserve Funding One-Time Budget Requests
71 Project Purpose Ongoing
Expand library hours
From 40-hour base to 46-hours $69,723
From 40-hour base to 52-hours $111,158
From 40-hour base to 56-hours $233,283
PD Tech & Officer Safety Body-worn & vehicle camera system $37,800 Permit Tracking Software Software would track progress and billing for permit processing $6,000 FY27 Reserve Funding Ongoing Budget Requests
72 Summary
• The City’s overall financial position remains sound and stable • FY26 will end with a deficit
• Revenue trailing budget by $495K
• Services/Supplies impacted by 1x costs with future savings + Unexpected costs • Recommended FY27 Adjusted Budget will cut the FY27 Adopted Budget deficit in half
• Fund balance reserves remain strong:
• FY26 GF EOY Fund Balance is likely $6.0M; Reserve policy minimum = $2.28M • FY27 GF EOY Fund Balance is likely $5.7M; Reserve policy minimum = $2.35M • Staff has identified $2.69M in One-time FY27 Funding Requests & $113- $275K ongoing expenses
73 Thank you
Staff recommends that the Council:
• Review the FY26 year-end projection,
• Approve FY27 Budget Adjustments, and
• Provide direction regarding FY27 reserve-funded budget augmentation requests 74 75
76 77
78 79
80 81
Dept/Fund Description Amount Wan Enea Diaz Tillman Trupiano $ 6,964,805
GF Reserves $ 6,964,805
$ -
$ -
$ -
$ -
Remaining One-Time Funding: $ 6,964,805
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ - $ - $ - $ - $ - $ -
Attachment C - Adjustments to FY27 Proposed Adjusted Budget Subtotal of One-Time or Ongoing Uses:
Subtotal of Potential FY 2026-27 Sources:
82