Ecei JUN 2 7 2025 Founded 185*

Since 2019, Clayton has had 12 City Managers, eight Finance Directors, and five Community Development Directors. The City disagrees with this finding. Interim and Acting positions are not equivalent to the full time positions. The quantities tabulated in the finding are incorrect using the Grand Jury's stated methodology. Excluding Acting and Interim roles, the correct figure for City Managers from 2019 to the date of the report is five, including our current City Manager.

The level of turnover of City Managers in Clayton is greater than other cities in the County. The City agrees with this finding.

Prior to January 1, 2025, the City Council did not follow its established guidelines for inclusion of an agenda item despite requests over the course of 15 months by a council member to do so. The City disagrees with this finding. Council Guidelines allow discretion by the Mayor and City Manager to set future agendas.

Prior to January 7, 2025, the public could learn of requests for agenda item inclusion in real time when proposed by council members in open session. The City agrees with this finding.

Subsequent to January 7, 2025, the public could learn of requests for agenda item inclusion only by an oral report of the City Manager made once per quarter. The City disagrees with this finding. The public could learn of requests for agenda item inclusion from Councilmembers directly. The public could also learn of requests for agenda item inclusion through written Council reports published in Agenda packages.

Prior to January 9, 2025, there was a City Council agenda-setting committee meeting, held regularly with the Mayor and Vice-Mayor along with the City Manager, City Clerk, and City Attorney. The City disagrees with this finding. A City Council Agenda Setting Committee has never existed. The Interim City Manager on his own accord, scheduled meetings to discuss agendas. These meetings which at times included the Mayor, Vice Mayor, City Clerk, and City Attorney are not subject to the Brown Act.

Committee meeting minutes are not consistently posted as a standalone document in the column provided on the City website. The City agrees with this finding. There is no requirement to post meeting minutes online, however the City chooses to do so. Certain meeting minutes are posted as standalone documents while others are included in agenda packets.

In 2024, 52% (13 of 25) of committee meetings were scheduled as special meetings. Consequently, opportunity for public comment on non-agenda items was eliminated. The City disagrees with this finding. While agendizing public comment on non-agenda items is not required for Special Meetings, some Special Meetings included an agenda item for public comment on non-agenda items, therefore the opportunity for public comment on non-agenda items was not eliminated.

Regular meetings of committees do not consistently place on the agenda an opportunity for public comment on non-agenda items, which violates the Brown Act requirements. The City partially disagrees with this finding. Public comment on non-agenda items is often included however there have been occasions where it was not. This matter has been addressed with staff who prepare meeting agendas.

The CBCA Negotiation Committee neither informed nor sought approval from the Council at a public meeting for actions taken, contrary to Council Guidelines. The City disagrees with this finding. The Committee informed the Council of its activities. And while there were discussions held, the Committee did not take any action on behalf of the City.

Revenue shortfall has been identified and confirmed as an issue by several City Managers since 2022. However, while the Council has discussed the issue, it has taken no action to increase revenue. The City disagrees with this finding. The City has taken several actions in an effort to increase revenue including: · The City has updated its investment policy and engaged a third party for managed investment services in an effort to increase revenue. The City has updated its master fee schedule to bring more current the costs associated with providing services for permits, rental uses, and administrative services. This included adding a special event fee for larger events that consume more of the City's resources. The City has engaged HdL to assist managing business license renewal process, including efforts to determine if there were additional businesses operating in the City that required a license in an effort to increase revenue. The City renegotiated its waste management service agreement to bring us in compliance with new statewide mandates for recycling and increase the franchise fee. In 2024, the City Council voted 4-1 directing staff to budget for the appropriate resources needed to fund and achieve a general parcel tax and move forward with a general parcel tax on the 2026 ballot.

The City Council did not follow the established requirements in Resolution 76-2022 for selecting members of the Citizens Financial Sustainability Committee. The City disagrees with this finding. The Committee is titled the "Community Financial Sustainability Committee". The established requirements of Resolution 76-2022 were followed. To date, three members have been appointed to the Committee. All appointed members possess a background in finance, accounting, auditing, or related field. One member who was appointed serves as the City's Treasurer and is a former Councilmember and Mayor. In those roles he had experience with governmental finance and budgeting, governmental accounting, and auditing. This satisfies all requirements of Resolution 76-2022. In addition, the Committee consists of five positions. Only three positions have been seated. If additional qualified candidates that meet the criteria as established by the Resolution apply, then they may be seated at the pleasure of the Council.

Committees formed by the City Council are not authorized to take action (other than advice and recommendations) without the Council's approval. The City disagrees with this finding. Committees formed by the City Council are not authorized to take action on behalf of the Council, however they may take action as a Committee within the scope of the duties of that Committee as created by the Council. ١