Agenda packet — La Cañada Flintridge City Council, June 16, 2026 (part 11 of 13)

C-1
EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. The City desires a third-party Contractor to administer the Programs in accordance with all applicable regulations and for a total cost within the approximate twenty percent (20%) administration charge allowed for each Program. In addition, City General Funds, not to exceed $10,000, will be used for any additional cost beyond the 20% CDBG administration funding.

Rates per hour are as follows:

Principal in Charge - $261 per hour
Project Manager - $255 per hour
Housing Programs Coordinator - $160 per hour
Sr. CDBG Analyst - $150 per hour
Housing Specialist - $145 per hour
II. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1 unless Additional Services are approved per Section 1.9.

III. The City will compensate Contractor for the Services performed upon submission of a valid invoice. Each invoice is to include:

A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.

B. Line items for all materials and equipment properly charged to the Services.

C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.

D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services and shall be preauthorized and based upon the approved rates of the Los Angeles County Auditor-Controller.

IV. The total compensation for the Services shall not exceed the Contract Sum as provided in Section 2.1 of this Agreement.

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D-1
EXHIBIT “D”

SCHEDULE OF PERFORMANCE
I. Contractor shall perform all services timely.

II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2 to be approved by the contract officer.

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City Council Agenda Report
Meeting Date: June 16, 2026
Subject: Approval of a Professional Services Agreement by and between the City of La Cañada Flintridge and m6 Consulting, Inc. for Building and Safety Services for FY 2026-27
Presenter: Susan Koleda, Director of Community Development Proposed Action: Renew the Professional Services Agreement by and between the City of La Cañada Flintridge and m6 Consulting, Inc., for Building and Safety Services for FY 2026-27 and authorize the City Manager to execute the agreement
Environmental Impact: The approval of the agreement is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), where the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Additionally, the actual issuance of building permits is Statutorily Exempt pursuant to Section 15268(b)(1) (Ministerial Projects) and inspections are Categorically Exempt pursuant to Section 15309 (Inspections)
Fiscal Impact: For FY 26-27, $1,600,000 has been budgeted within account 01-26- 6060 (Building and Safety - Contract Services)
Background:

Since October 1, 2024, m6 Consulting Inc. has provided Building and Safety services to the City.

Their scope of work is comprised of building inspection, plan check for architectural, structural, mechanical, electrical, plumbing, and grading, and geotechnical review under the various adopted building codes.

The City’s two full-time and one part-time Permit Technicians have provided diligent continuity of service and knowledge since m6’s services began. Employee costs are separate items within the Building and Safety Division budget, and are not included within the costs associated with the contract building services.

Discussion/Analysis:

The report below highlights permit workloads and permit turnaround time. It should be noted, however, that Matrix Consulting Group has been brought on board to analyze the Community Development Department’s efficiency in processing Planning entitlements and building permits. The

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results from that analysis are expected to be provided within the next few months.

Permit Workloads
Table 1 provides data over permits applied for, issued and completed over the past three fiscal years:

Table 1 - Permits Applied, Issued and Finalized
FY 23-24 FY24-25
FY 25-26 (to date)
Permits Applied 1903 1940 1867
Permits Issued 1935 1733 1677
Permits Finalized 1612 1355 1431
Permit Turnaround Times
In its contract with the City, m6 is provided with financial incentives to meet a series of plan check turnaround times. Provide 80% of plan checks meet the turnaround times are identified below in Table 2, the percentage of plan check fees m6 can invoice increases from 60% to 65%. The consultant has met the target turnaround time every month during the past contract period.

Table 2 – Plan Check Timeframes
Type of Job Turnaround Time
Residential
New Construction
10 working days
Remodel
5 working days
Pools/Spa/PV
3 working days
SFD Addition (one-story)
5 working days
SFD Addition (two-story)
10 working days
Major Projects
15 working days/ TBD Depending on Scope
Non-Residential
New Construction
10 working days
Addition
10 working days
Remodel
5 working days
Minor TI & Other Minor Project
5 working days
Other Tenant Improvements
3 working days

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Major Projects
15 working days/ TBD Depending on Scope
Other
Standard retaining Walls
5 working days
Non-Standard Retaining Walls
10 working days
Note that the plan check turnaround time standards listed in Table 2 do not include the time required for the initial screening of projects for required plans and documentation and valuation. This screening process currently averages 5 business days. The consultant has assumed this task in coordination with their regular plan review duties. The consultant has suggested this task be completed by the Permit Technicians; however, existing City staff do not have the capacity to absorb this task.

Table 3 – Number of Inspections
FY 23-24 FY24-25 FY 25-26 (to
date)
Number of Inspections 5874 6663 7741
Conclusion
Staff believes that the Professional Services Agreement with m6 Consulting Inc. should be renewed given the compliance with plan check timeframes.

Options:

1. Renew the Professional Services Agreement by and between the City of La Cañada Flintridge and m6 Consulting, Inc. for Building and Safety Services for FY 26-27 and authorize the City Manager to execute the agreement; or

2. Do not approve the agreement and provide staff with further direction; or

3. Defer action at this time.

Recommendation:

Option No. 1 - It is recommended that the City Council take the following action(s): Renew the Professional Services Agreement by and between the City of La Cañada Flintridge and m6 Consulting, Inc. for Building and Safety Services for FY 26-27 and authorize the City Manager to execute the agreement
Attachments:

1. Professional Services Agreement - m6 Consulting Inc.

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01172.0001/563136.1 1

CONTRACT SERVICES AGREEMENT
By and Between
CITY OF LA CAÑADA FLINTRIDGE
and
m6 Consulting Inc.

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Long Form
01172.0001/563136.1

AGREEMENT FOR CONTRACT SERVICES
BETWEEN THE CITY OF CITY OF LA CAÑADA FLINTRIDGE AND
M6 CONSULTING, INC.

THIS AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and entered into on July 1, 2026 by and between the City of La Cañada Flintridge, a California municipal corporation (“City”) and m6 Consulting, Inc., a California corporation (“Consultant”).

City and Consultant may be referred to, individually or collectively, as “Party” or “Parties.”

RECITALS
A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement.

B. Consultant, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services.

C. Pursuant to the City of La Cañada Flintridge Municipal Code, City has authority to enter into and execute this Agreement.

D. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder.

As a material inducement to the City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more firstclass firms performing similar work under similar circumstances.

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1.2 Consultant’s Proposal.

The Scope of Service shall include the Consultant’s scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law.

Consultant shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered.

1.4 California Labor Law.

If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws, including the following requirements:
(a) Public Work. The Parties acknowledge that some or all of the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Consultant shall post job site notices, as prescribed by regulation.
(b) Prevailing Wages. Consultant shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Consultant acknowledges receipt of a copy of the Department of Industrial Relations (DIR) determination of the prevailing rate of per diem wages, and Consultant shall post a copy of the same at each job site where work is performed under this Agreement.
(c) Penalty for Failure to Pay Prevailing Wages. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Consultant shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor.

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(d) Payroll Records. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subconsultant to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records. (e) Apprentices. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Consultant and each of its subconsultants shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement.
(f) Eight-Hour Work Day. Consultant acknowledges that eight (8) hours labor constitutes a legal day's work. Consultant shall comply with and be bound by Labor Code Section 1810.
(g) Penalties for Excess Hours. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.
(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Consultant certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
Consultant’s Authorized Initials ________
(i) Consultant’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Consultant shall be responsible for such

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subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any such failure by any subcontractor.

1.5 Licenses, Permits, Fees and Assessments.

Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.

By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly investigated and considered the scope of services to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Consultant discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Contract Officer.

1.7 Care of Work.

The Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own negligence.

1.8 Further Responsibilities of Parties.

Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other.

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1.9 Additional Services.

City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum or $14,999, whichever is less; or, in the time to perform of up to one hundred eighty (180) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other Consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

1.10 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference.

Method of Compensation.

The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services, less contract retention; (iii) payment for time and materials based upon the Consultant’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained, and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.

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2.3 Reimbursable Expenses.

Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City.

Coordination of the performance of the work with City is a critical component of the services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings.

2.4 Invoices.

Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance.

By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “C”, and shall detail charges for all necessary and actual expenses by the following categories:
labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Subcontractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person.

City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Consultant to be paid within forty-five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.5 Waiver.

Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance.

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Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively.

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section.

3.4 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). [The City may, in its sole discretion, extend the Term for two (2) additional one-year terms.] ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Consultant.

The following principals of Consultant (“Principals”) are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:

Robert Woodward Principal Engineer
Masoud Mahmoud Principal Engineer
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement.

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Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Additionally, Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.

4.2 Status of Consultant.

Consultant shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights.

4.3 Contract Officer.

The Contract Officer shall be the Director of Community Development, or such person as may be designated by the City Manager. It shall be the Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.4 Independent Consultant.

Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Consultant’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.

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4.5 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Consultant or any surety of Consultant of any liability hereunder without the express consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.
(a) General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(b) Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (c) Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

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(e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”.

5.2 General Insurance Requirements.
(a) Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(b) Duration of coverage. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, employees or subconsultants. (c) Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery

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against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(g) Enforcement of contract provisions (non-estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(i) Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change

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results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation.
(o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(p) Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(q) Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

5.3 Indemnification.

To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Consultant will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith;
(b) Consultant will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Consultant hereunder; and Consultant agrees to save and hold the City, its officers, agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Consultant for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Consultant hereunder, Consultant agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or

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employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.

Consultant shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Consultant shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Consultant in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement.

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the books and records may be given to City, and access shall be provided by Consultant’s successor in interest. Notwithstanding the above, the Consultant shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Reports.

Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.

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6.3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Consultant will be at the City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City.

6.4 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.
(b) Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena. (c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. (d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by

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Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Los Angeles, State of California.

7.2 Disputes; Default.

In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default.

This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Consultant’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.

7.3 Retention of Funds.

Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Consultant to insure, indemnify, and protect City as elsewhere provided herein.

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7.5 Waiver.

Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.

Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver.

Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

7.6 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

7.7 Legal Action.

In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.8 Termination Prior to Expiration of Term.

This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, except that where termination is due to the fault of the Consultant, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Consultant reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to

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this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.

7.9 Termination for Default of Consultant.

If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7.10 Attorneys’ Fees.

If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

No officer or employee of the City shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest.

Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation,

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partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation. The Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination.

Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

8.4 Unauthorized Aliens.

Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of La Cañada Flintridge, One Civic Center Drive., La Cañada Flintridge, California 91011 and in the case of the Consultant, to the person(s) at the address designated on the execution page of this Agreement.

Either party may change its address by notifying the other party of the change of address in writing.

Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9.3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

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9.4 Integration; Amendment.

This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Consultant and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9.5 Severability.

In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

9.6 Warranty & Representation of Non-Collusion.

No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement.

Consultant further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Consultant is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Consultant’s Authorized Initials _______

9.7 Corporate Authority.

The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this

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Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY:

CITY OF LA CAÑADA FLINTRIDGE, a
municipal corporation
Daniel Jordan, City Manager
ATTEST:

Tania Garcia, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
Adrian Guerra, City Attorney
CONSULTANT:
m6 Consulting, Inc.

By:

Name: Robert Woodward
Title: Principal Engineer
By:

Name: Masoud Mahmoud
Title: Principal Engineer
Address: m6 Consulting, Inc.
893 Patriot Drive, Unit E
Moorpark, CA 93021
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S

SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE

INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant will perform the following Services:

II. As part of the Services, Consultant will prepare and deliver the following tangible work products to the City: NOT APPLICABLE
III. In addition to the requirements of Section 6.2, during performance of the Services, Consultant will keep the City appraised of the status of performance by delivering the following status reports: NOT APPLICABLE
IV. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.

V. Consultant will utilize the following personnel to accomplish the Services:

Personnel will be determined by Consultant, as needed.

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EXHIBIT “B”

SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
[INTENTIONALLY LEFT BLANK]

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EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Consultant shall perform the following tasks at the following rates:
m6 Consulting, Inc.

Building and Safety Services Fee Schedule
Plan Check Services: Percentage*
Building Plan Review 60% of Fee*
Structural Only Plan Review 60% of Fee*
Mechanical, Electrical or Plumbing (MEP) Plan Review 60% of Fee* Grading Plan Review 60% of Fee*
* Percentage fee shall be increased to 65% if 80% of the City’s monthly turnaround goal is achieved, as identified on Exhibit “D” of the Agreement.

Plan Check review fee includes three (3) checks and hourly fee thereafter per the rate below.

Hourly Plan Check Services: Hourly**
3rd or subsequent Building, Structural, or MEP Plan Check Review $140.00 Soils/Geotechnical (all reviews) $207.00
** One half-hour Minimum Fee.

Expedited Plan Review: Factor
Expedited Project Review 1.5x Fee
Personnel Services: Hourly***
Plan Check Engineer $140.00
Certified Plans Examiner $140.00
CASp Plans Examiner/Inspector $140.00
Fire Plans Examiner $140.00
Building Official $150.00
Senior Building Inspector/IOR $119.00
Building Inspector $99.00
Assistant Building Inspector $79.00
Senior Permit Technician $75.00
Permit Technician $65.00
Community Development Specialist $99.00
Civil Engineer $140.00
MEP Engineer $140.00
Structural Engineer $140.00
Soils/Geotechnical Engineer $207.00
Principal Engineer $175.00
Administration $45.00
*** 4 hour per day minimum will be billed for out-of-office & on-site personnel services, unless otherwise agreed upon.

Rates are increased by a factor of 1.5 times for overtime, holidays (as defined by City) and weekend assignments. All rates are subject to a 2% increase annually on July 1st
.

MISCELLANEOUS CHARGES:

Project screening or final stamp/agency verification (charged to nearest 15 mins) $140.00/hour Meetings/other services not identified above Hourly rates identified above Direct Costs/Materials & Expenses Cost+15%
Outside Reproduction Cost+15%
Mileage Reimbursement Current IRS rate, adjusted as appropriate No charge if City vehicle is provided for inspections

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01172.0001/563136.1 D-1
EXHIBIT “D”

SCHEDULE OF PERFORMANCE
I. Consultant shall perform all services timely in accordance with the following schedule:

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City Council Agenda Report
Meeting Date: June 16, 2026
Subject: Adopt the City’s Investment Policy for Fiscal Year 2026-27 Presenter: Jennifer Leblanc, City Treasurer
Proposed Action: Motion to adopt the Investment Policy for Fiscal Year 2026-27 Environmental Impact: None
Fiscal Impact: None
Discussion/Analysis:

The IFAC Committee has recommended no changes to the attached Investment Policy. The City’s proposed Investment Policy for Fiscal Year Ending June 30, 2027 (FY 2026-27) is provided for City Council’s review and approval.

Options:

1. Motion to adopt the City’s Investment Policy for Fiscal Year 2026-27

2. Provide direction to staff
Recommendation:

Option No. 1 - It is recommended that the City Council take the following action(s): adopt the City’s Investment Policy for Fiscal Year 2026-27
Attachments:

1. Investment Policy_CC_ATI_06-16-26

Page 1413 of 1818 ends

1 CITY OF LA CAÑADA FLINTRIDGE

INVESTMENT POLICY
FOR THE FISCAL YEAR ENDING JUNE 30, 2027

1. POLICY: It is the policy of the City of La Cañada Flintridge (“the City”) to invest public funds in a manner that will provide an optimal combination of security and investment return while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.

2. SCOPE: This investment policy applies to the investment of all financial assets of the City, except for those of the City’s deferred compensation plan, the management of which is distinct and is not governed by this Investment Policy, and bond and financing proceeds, which will be made in accordance with the provisions of the applicable indentures. For the purpose of investment management, and except for the assets of the deferred compensation plan and the investment of bond and financing proceeds into vehicles authorized by the provisions of the applicable indentures but not by this Policy, all funds are pooled with the General Fund to facilitate ease of handling and to minimize costs of maintaining multiple investment accounts. Earnings on the pool of funds are allocated on a periodic basis to the respective individual funds.

3. PRUDENCE: California Government Code section 53600.3 classifies all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds as trustees, and therefore fiduciaries subject to the prudent investor standard.

The prudent investor standard requires that when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, 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 agency.

4. OBJECTIVES: The chief objectives, in priority order, of the City’s investment activities shall be:
• Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments to minimize the risk of loss resulting from over concentration of assets in a specific maturity range, of a specific issuer, or in a specific class of securities.
• Liquidity: The City’s investment portfolio will be managed to ensure sufficient liquidity to enable the City to meet all reasonably anticipated operating requirements, and should consist of securities with an active secondary or resale market.
• Return on Investment: The City’s investment portfolio shall be designed with the objective of attaining an optimal return throughout budgetary and economic cycles within established portfolio safety and liquidity parameters.

5. AUTHORIZATION AND DELEGATION OF AUTHORITY: Under and as specified by California Government Code Section 53601, the legislative body of a local agency (i.e., the City Council) is authorized to invest money in its treasury that is not required for immediate needs. As permitted under California Government Code Section 53607, the City Council with the approval of this Policy delegates management responsibility for the investment program for a concurrent and renewable period of one-year to the City Treasurer or in his/her absence the Assistant City Treasurer, who shall assume full responsibility for those transactions until the delegation of authority is revoked or expires, and who shall make a monthly report of those transactions to the City Council.

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2 6. INVESTMENT AND FINANCING ADVISORY COMMITTEE: The City has created an Investment and Financing Advisory Committee (“Committee”) consisting of five community members, plus the City Treasurer as Chairperson. The City Council appoints Committee members to four-year terms, with a maximum length of service of two consecutive four-year terms. Individual terms are staggered for the purpose of continuity. The purpose of the Committee is to:
• Meet quarterly to review the status of the City’s investments and to determine compliance with the City’s Investment Policy.
• Provide advice to the City Treasurer on investment and portfolio decisions, including opinions on economic and business conditions.
• Review the Investment Policy annually and suggest amendments or changes to improve and maximize the City’s investment capabilities and to ensure compliance with federal, state and local laws and regulations.
• Provide advice to the City Treasurer on debt issuance and management. • Provide advisory support to forecast and analyze cash flow projections in order to enhance liquidity and investment portfolio management.
• As requested by City Council and/or staff, review the annual audit of the City’s financial statements and investments and to make recommendations on management letter comments/audit recommendations related to the City’s investments. • Aid the City Treasurer in related matters, as needed. • Make recommendations to the City Council as may be appropriate.

7. ETHICS AND CONFLICTS OF INTEREST: All City officers, employees, and members of the Investment and Financing Advisory Committee involved in the City’s investment process shall act responsibly as custodians of the public trust, and 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 and portfolio management decisions.

8. AUTHORIZED INVESTMENT ADVISOR: The City has authorized to contract the services of a registered investment advisor, on a non-exclusive basis. Investment advisory services may include investment research and supervision, and a continuous program of investment, evaluation, and execution of sale and reinvestment of City funds. Each investment decision must be made by the City Treasurer or in his/her absence the Assistant City Treasurer before any investment transaction is executed. The investment advisor is authorized to place all orders for the purchase, sale, loan or exchange of portfolio securities for the City’s account with brokers or dealers, and is authorized as agent of the City to give instructions to its third party custodian as to deliveries of securities and payment of cash for the account of the City. The investment advisor shall ensure that orders are placed with reputable, qualified, and financially sound brokers/dealers. In connection with the qualification and selection of brokers and dealers and the placing of such orders, the investment advisor is directed to seek for the City the most favorable execution and price. The investment advisor shall provide the City with a monthly statement showing deposits, withdrawals, purchase and sales (or maturities or calls) of investments, earnings received and the value of assets held. The City Treasurer shall annually provide a copy of the City’s Investment Policy to the investment advisor.

9. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS FOR INVESTMENT SERVICES: The City is authorized to utilize the investment services of financial dealers and institutions outside of the investment advisory agreement. The City Treasurer shall maintain a list of financial institutions authorized to provide investment services, if any, and a list of approved security broker/dealers, if any, selected by creditworthiness and who are authorized to provide investment services in California. These lists, if any, shall be reviewed and approved by the Investment and Financing Advisory Committee. Each approved financial dealer and institution must certify that it has read and agrees to comply with the investment policies of the City, must be a “primary” dealer or regional dealer that qualifies under the Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule), must have an office in California, must be experienced in institutional trading practices and familiar with the California Government Code as related to investments for local governmental agencies, must have been in business for at least three years, must provide current audited financial

Page 1415 of 1818 ends

3 statements, and must provide proof of National Association of Security Dealers certification.

Selection of an approved institution for execution of a specific investment transaction shall be made on the basis of the most favorable execution and price whenever practical. Each investment decision must be made by the City Treasurer or in his/her absence the Assistant City Treasurer before any investment transaction is executed.

10. AUTHORIZED FINANCIAL INSTITUTIONS FOR DEPOSITORY SERVICES: Each financial institution with which the City’s public funds are deposited shall supply the City Treasurer with current audited financial statements, depository contracts, a copy of its latest FFIEC call report, proof that the institution is state or federally chartered, and must have received an overall rating of “satisfactory” or better in its most recent supervisorial evaluation of its record of meeting the credit needs of California's communities. All public funds deposits placed with authorized financial institutions must be collateralized as described in section 12, “Collateral Requirements”, and Appendix A of this Investment Policy. The City’s total deposits with any single depository shall not exceed that depository’s industry-specific definition of net worth, except as permitted under California Government Code Section 53638.

11. AUTHORIZED AND SUITABLE INVESTMENTS: The City is empowered by statute (California Government Code Section 53600 et seq.) to invest money in certain types of securities and funds.

Within that empowerment, the City restricts eligible securities and funds to those listed below. Each type listed is subject to various specific requirements and restrictions, imposed by the above referenced California Government Code Sections, and by the City by way of this Investment Policy.

These requirements and restrictions are detailed in Appendix A to this Investment Policy. • U.S. Treasury Securities
• Federal Agency and U.S. Government-Sponsored Enterprise Obligations • Medium Term Notes
• Commercial Paper
• Time Deposits (including non-negotiable Certificates of Deposit) • Negotiable Certificates of Deposit
• Bankers’ Acceptances
• Local Agency Investment Fund (LAIF)
• Shares of Beneficial Interest issued by a Joint Powers Authority • Repurchase Agreements
• Mutual Funds
• Money Market Mutual Funds
• U.S. Supranationals
Except as specifically authorized by the City Council in advance, no investment shall be made in any security that at the time of investment has a term remaining to maturity in excess of five years. Also, no investment shall be made, unless specifically authorized by the City Council in advance, with a forward settlement of over two weeks.

As a Local Agency, the City is specifically prohibited from investing in inverse floaters, range notes, mortgage-derived interest-only strips, or any securities that could result in zero interest accrual if held to maturity (California Government Code section 53601.6).

Whenever a security drops to a level deemed to have increased risk (for example, if it is downgraded to lower than an A3 or A- long term rating from either Standard and Poors and/or Moodys), then the City Treasurer must inform the City Council of this holding as part of the monthly Investment Report at the next, and subsequent, City Council meetings. Similarly, the holding must be agendized onto the next IFAC meeting for discussion. While credit rating is being utilized as the trigger in this case, a significant drop in price could also be a signal that risk tolerances may need to be addressed for the particular holding.

Page 1416 of 1818 ends

4 It is to be noted that the City Treasurer has the discretion to sell the position at any time and has the discretion to transact between meetings at any time.

12. COLLATERAL REQUIREMENTS: Collateral is required to secure investments in repurchase agreements and deposits of all public funds with financial institutions. Collateral requirements are described under “Additional State Limits” and “Additional City Limits” in Appendix A of this Investment Policy. The description of collateral requirements to secure deposits of public funds is located in the “Time Deposits” section of Appendix A.

13. SAFEKEEPING AND CUSTODY: All security transactions shall be conducted on a delivery-versuspayment (DVP) basis. Securities shall be held by a third party qualified custodian and evidenced by monthly safekeeping statements.

14. DIVERSIFICATION OF SECURITIES AND MATURITIES: The City shall maintain a diversified portfolio to minimize the risk of loss resulting from over concentration of assets in a specific maturity range, of a specific issuer, or in a specific security type. Diversification of securities types is described in Appendix A of this Investment Policy.

The City employs a passive investment strategy, by which the City’s full intent at the time of purchase is to hold all investments until maturity. Investments shall be made and maintained to match the City’s projected cash flow requirements. Investments shall be made in realization that market prices of securities will vary depending on economic and interest rate conditions at any point in time. In the context of both the City’s immediate and/or projected cash flow requirements at any point in time and the City’s primary investment goals (safety, liquidity, return on investment), the sale of individual securities prior to maturity for purposes of portfolio reconfiguration may be appropriate.

The City’s maturity matrix guideline ranges are as follows:

Maturity Range Guideline Portfolio Percentage
1 Day to 1 Year 30% - 80%
1 Year to 3 Years 10% - 60%
3 Years to 5 Years 10% - 40%
Normally, the targeted weighted average maturity of the entire portfolio will approximate two years.

The City’s recommended allocation for callable securities is 0-30% at the conclusion of investment.

15. INTERNAL CONTROLS: Internal policies and procedures shall be maintained to assure that appropriate controls are in place to document and confirm all transactions. Transaction authority shall be separated from accounting and record keeping. An independent analysis by an external auditor shall be conducted annually to review internal control, account activity and compliance with policies and procedures.

16. PERFORMANCE STANDARDS: Given the City’s passive investment strategy and the strategy for maturities diversification, the average weighted maturity of the portfolio will normally approximate two years. The basis used by the Treasurer to determine whether market yields are being achieved shall be to benchmark portfolio returns as of the end of each month and the average of portfolio returns for the last twelve month ends against comparable two year Treasury Constant Maturity yields.

17. REPORTING: The City Treasurer or in his/her absence Assistant City Treasurer shall provide the City Council and the City Manager a monthly investment report within 30 days following the end of the month covered by the report. Each report shall be certified by the City Treasurer or in his/her absence the Assistant City Treasurer, signifying compliance with the City’s Investment Policy and stating the ability of the City to meet its expenditure requirements for the next six months, or providing an explanation as to why sufficient funds shall not or may not be available.

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5 Each report shall include the type of investment, issuer, par value, dollar amount invested, maturity date, days to maturity and call, coupon or interest rate, and as applicable market value and source of market valuation on all securities, investments, and monies held by the City. Reports shall also identify the broker/dealer from which each security was acquired. Reports shall include the weighted average days to maturity and weighted average days to call of the entire portfolio, and the weighted current yield of the entire portfolio. On a quarterly basis, reports shall contain a description of any of the local agency’s funds, investments, or programs that are under the management of contracted parties, including those related to lending programs, unless specifically excepted. In monthly or quarterly reporting, the City Treasurer or in his/her absence Assistant City Treasurer shall report whatever additional information or data may be required by the City Council. In accordance with California Government Code section 53646, the City shall provide a copy of its Investment Policy within 60 days of the close of the second quarter of the calendar year.

18. LEGISLATIVE CHANGES: Any State of California legislative action that further restricts allowable securities, investments, portfolio limits or any other elements of this Policy will be incorporated into the City’s Investment Policy and will supersede previous applicable language.

19. INVESTMENT POLICY ADOPTION: The City’s Investment Policy shall be reviewed at least annually and adopted by resolution of the City Council at a public meeting prior to the commencement of the ensuing fiscal year for which the policy shall be applicable. Absent this, the previously approved policy shall remain the policy of the City until superseded. Any modifications to the Investment Policy must be considered by the City Council at a public meeting.

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6 APPENDIX A

SCHEDULE OF ALLOWABLE INVESTMENTS

AND RELATED REQUIREMENTS AND RESTRICTIONS

PERMITTED INVESTMENTS

STATUTORY LIMITS
(at date of acquisition)

CITY LIMITS
(at date of acquisition)
Portfolio
Limit
Maximum
Maturity
Portfolio
Limit
Maximum
Maturity
U.S. TREASURY SECURITIES None 5 Years None 5 Years

Additional State Restrictions: None.

Additional City Restrictions: None.

FEDERAL AGENCY AND U.S. GOVERNMENTSPONSORED ENTERPRISE OBLIGATIONS None 5 Years None 5 Years Additional State Restrictions: None.

Additional City Restrictions: Guideline concentration limit of no more than 35% of total portfolio invested into obligations of a single issuer, if obligations are not backed by the full faith and credit of the U.S.

Government, at the time of acquisition. Floating rate obligations are not eligible for investment.

MEDIUM TERM NOTES 30% 5 Years 30% 5 Years

Additional State Restrictions: Issuer must be a corporation organized and operating within the US, or a depository institution licensed by the US or by any state and operating within the US. Eligible notes must be rated “A” or better by a nationally recognized rating service.

Additional City Restrictions: Eligible notes must be rated “A” or better by Standard & Poor’s or by Moody’s. The aggregate par value of notes rated “A” by either Standard & Poor’s or by Moody’s may not exceed 5% of the par value of the total investment portfolio governed by this Policy at the time of acquisition.

Total par value of medium term note and commercial paper holdings of a single issuer may not exceed $1,000,000.

COMMERCIAL PAPER 25% 270 days 25% 270 days

Additional State Restrictions: Commercial paper must be of “prime” quality of the highest ranking or of the highest letter and number rating by a nationally recognized statistical-rating organization. Issuer must be 1) a corporation organized and operating within the US, with total assets in excess of $500 million, with long term debt (if any) rated “A” or better by a nationally recognized statistical-rating organization, or 2) a special purpose corporation, trust, or limited liability company organized within the US, that has program wide credit enhancements including but not limited to over collateralization, letters of credit, or surety bond, and has commercial paper that is rated “A-1” or higher, or the equivalent, by a nationally recognized statistical-rating organization. No more than 10% of a single issuer’s outstanding commercial paper may be purchased.

Additional City Restrictions: Total par value of commercial paper and medium term note holdings of a single issuer may not exceed $1,000,000.

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7 APPENDIX A

SCHEDULE OF ALLOWABLE INVESTMENTS

AND RELATED REQUIREMENTS AND RESTRICTIONS

PERMITTED INVESTMENTS

STATUTORY LIMITS
(at date of acquisition)

CITY LIMITS
(at date of acquisition)
Portfolio
Limit
Maximum
Maturity
Portfolio
Limit
Maximum
Maturity
TIME DEPOSITS (including non-negotiable
Certificates of Deposit) None 5 Years 15% 1 Year

Additional State Restrictions: Total deposit exposure to any one institution not to exceed that institution’s industry-specific determination of net worth, with specified limited exceptions permitted by State Government Code. Deposits must be collateralized with a) eligible government and agency securities with a value of 110% of principal and accrued interest; b) first trust deed mortgage notes with a value of 150% of total agency deposit; or c) letter of credit drawn on the Federal Home Loan Bank of 105% of total agency deposit.

Collateral requirements for all deposit exposures up to $100,000 that are fully insured by the FDIC may be waived.

Additional City Restrictions: Depository institution must have at least an “adequately capitalized” regulatory capital rating at the time of deposit.

NEGOTIABLE CERTIFICATES OF DEPOSIT 30% 5 Years 15% 5 Years

Additional State Restrictions: Must be issued by a nationally or state chartered bank, or a state or federal savings association, or by a state licensed branch of a foreign bank. Total deposit exposure to any one institution not to exceed that institution’s industry-specific determination of net worth, with specified limited exceptions permitted by State Government Code.

Additional City Restrictions: Eligible Negotiable CD’s must carry a Moody’s Long Term Deposit rating of “A” or better. Daily transactions in negotiable CD’s not to exceed 15% of total portfolio in effect immediately after such transactions are made. Obligor depository institution must have at least an “adequately capitalized” regulatory capital rating at the time of investment.

BANKERS’ ACCEPTANCES 40% 180 days 20% 180 days

Additional State Restrictions: No more than 30% of portfolio may be invested into Bankers’ Acceptances of a single commercial bank.

Additional City Restrictions: No more than 10% of portfolio may be invested into Bankers’ Acceptances of a single commercial bank.

LOCAL AGENCY INVESTMENT FUND (LAIF)
$40 million
(set by
LAIF)
Not
Applicable 70% Not Applicable

Additional State Restrictions: None.

Additional City Restrictions: None.

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8 APPENDIX A

SCHEDULE OF ALLOWABLE INVESTMENTS

AND RELATED REQUIREMENTS AND RESTRICTIONS

PERMITTED INVESTMENTS

STATUTORY LIMITS
(at date of acquisition)

CITY LIMITS
(at date of acquisition)
Portfolio
Limit
Maximum
Maturity
Portfolio
Limit
Maximum
Maturity

SHARES OF BENEFICIAL INTEREST ISSUED BY
A JOINT POWERS AUTHORITY None Not
Applicable 25% Not Applicable

Additional State Restrictions: JPA investments limited to those permitted by State Code. JPA must have an investment advisor registered or exempt from registration with the SEC with at least five years experience investing in securities permitted by State Code and with assets under management of at least $500 million.

Additional City Restrictions: Same as State.

REPURCHASE AGREEMENTS None 1 Year 10% 30 days

Additional State Restrictions: Underlying securities limited to those securities otherwise permitted by State Code. Market value of underlying securities (collateral) must equal or exceed 102% of value of the repurchase agreement, and the value must be adjusted no less than quarterly.

Additional City Restrictions: Market value of underlying securities (collateral) must be monitored daily to ensure compliance with 102% collateral requirement. Underlying securities limited to U.S. Treasuries, obligations of Federal Agencies or Government Sponsored Enterprises, certificates of deposit, or bankers’ acceptances as otherwise authorized. Collateral exposure to certificates of deposit and bankers’ acceptances subject to established State Code limits or established City limits, if more restrictive. A Public Securities Association (PSA) Master Repurchase Agreement is required for all repurchase agreements transacted. Direct investment in reverse repurchase agreements is prohibited.

MUTUAL FUNDS 20% N/A 20% N/A

Additional State Restrictions: Eligible Funds restricted to those that invest in securities and obligations otherwise permitted by State Code. Eligible Funds must have highest letter and number ratings provided by at least two nationally recognized statistical rating organizations, or have retained an investment advisor registered or exempt from registration with the SEC with at least five years experience investing in securities and obligations authorized by State Code and with assets under management in excess of $500 million. No more than 10% of portfolio may be invested in any one fund.

Additional City Restrictions: Same as State.

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9 APPENDIX A

SCHEDULE OF ALLOWABLE INVESTMENTS

AND RELATED REQUIREMENTS AND RESTRICTIONS

PERMITTED INVESTMENTS

STATUTORY LIMITS
(at date of acquisition)

CITY LIMITS
(at date of acquisition)
Portfolio
Limit
Maximum
Maturity
Portfolio
Limit
Maximum
Maturity
MONEY MARKET MUTUAL FUNDS 20% N/A 20% N/A

Additional State Restrictions: Eligible Funds restricted to those that are money market funds registered with the SEC under the Investment Company Act of 1940. Eligible Funds must have highest letter and number ratings provided by at least two nationally recognized statistical rating organizations, or have retained an investment advisor registered or exempt from registration with the SEC with at least five years experience managing money market mutual funds and with assets under management in excess of $500 million.

Additional City Restrictions: Same as State.

U.S. SUPRANATIONALS 30% 5 Years 15% 5 Years

Additional State Restrictions: Eligible securities that are accepted: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better aby an NRSRO and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.

Additional City Restrictions: Self-imposed City limit of 15 percent of total portfolio allowed for these securities.

Page 1422 of 1818 ends

10 GLOSSARY
Acceptance. See “Bankers’ Acceptance”.

Active Investment Management. An investment strategy that involves the active trading of securities in an attempt to earn above-average returns on a portfolio. See also “Passive Investment Management”.

Adequately Capitalized Bank: An FDIC insured depository institution with a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 4% or greater, a leverage ratio of 4.0% or greater (or 3.0% or greater if certain other standards are met), and does not meet the definition of a well capitalized bank. See also “well capitalized bank”, “undercapitalized bank”, “significantly undercapitalized bank”, and “critically undercapitalized bank”.

Agency / Agencies. See “Federal Agency Securities”.

Asked. Price offered to sell securities.

Asset Backed Commercial Paper. Short term debt issued by a corporation, conduit, trust or limited liability corporation which is structured as a limited-purpose finance company whose only purpose is to finance the purchase of assets, such as receivables or loans, with the issuance of commercial paper. See also “Commercial Paper”.

Bankers’ Acceptance (BA’s). A short-term credit instrument created by a non-financial firm and guaranteed by a bank as to payment. Bankers’ acceptances are traded at discounts from face value as money market instruments in the secondary market on the basis of the credit quality of the guaranteeing bank.

Basis Point. 0.01% of yield on a fixed income security; one hundredth of one percent.

Benchmark. A comparative basis for measuring the performance or risk tolerance of an investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

Bid. Price offered to purchase securities.

Bond. A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Book Value. The value at which a debt security is reflected on the holder’s records at any point in time. Book value is acquisition cost less amortization of premium or accretion of discount recognized from the time of acquisition to the point in time that book value is determined.

Broker. A broker brings buyers and sellers together, and receives a commission.

California Asset Management Program (CAMP). California Joint Powers Authority established under the provisions of the California Joint Exercise of Powers Act, formed to provide investment services to California Public Agencies. The Program consists of the services of the California Asset Management Trust, the Trust’s Investment Advisor (Public Financial Management, Inc.), and the Program’s custodian (BNY Western Trust Company).

California Asset Management Trust. A California Common Law Trust established under provisions of the California Joint Exercise of Powers Act that allows any participating California Public Agency to purchase shares of beneficial interest in a money market investment pool (the “Cash Reserve Portfolio”) for the temporary investment of operating funds and proceeds from bonds, notes and certificates of participation, pending their disbursement. The Trust’s investments are limited to those authorized by California Government Code. A feature offered as part of the California Asset Management Program (CAMP).

Call. Right of a security issuer to redeem the security at par value at a specified date or dates prior to its maturity date. Securities issued with a call provision typically carry a higher coupon rate than those issued without a call feature for a like maturity.

Call Date. Date at which a call may be or is exercised.

Page 1423 of 1818 ends

11 Certificate of Deposit (CD). Particular type of time deposit investment available at financial institutions, generally offering a fixed rate of return for a specified period of time. The investor receives a “certificate” evidencing the deposit.

Collateral. Securities, evidence of deposit or other property that a borrower pledges to secure repayment of a loan.

Also refers to securities pledged by a bank to secure deposits of public monies.

Commercial Paper. Short term unsecured promissory note issued by a company on a discount basis. See also “Asset Backed Commercial Paper”.

Counterparty. The other party in a two party financial transaction. “Counterparty risk” refers to the risk that the other party to a transaction will fail in its related obligations.

Coupon Rate. Annual interest rate on the face amount of a debt security, usually used in reference to interest on bonds.

Critically Undercapitalized Bank. An FDIC insured depository institution with a ratio of tangible equity to total assets that is equal to or less than 2.0%. See also “well capitalized bank”, “adequately capitalized bank”, “undercapitalized bank”, and “significantly undercapitalized bank”.

Current Yield. Annual rate of return from an investment based on the income received during a year compared with the investment’s current market price, expressed as a percentage.

Custody. Safekeeping service offered usually by a financial institution (the custodian) for a customer’s securities.

Service normally includes the holding and reporting of the customer’s securities, and the collection and disbursement of income, securities and proceeds according to customer instructions.

Dealer. Individual or firm that buys assets for and sells financial assets from its own portfolio. See also “Primary Dealer”.

Delivery Versus Payment (DVP). Settlement procedure in which a customer instructs that immediate payment will be made upon delivery of a purchased security.

Derivative. A financial asset whose value depends on (i.e. “derives” from) another financial or monetized asset.

Discount. The amount by which a bond or other financial instrument sells below its face value. See also “Premium”.

Discount Rate. Rate charged by the system of Federal Reserve Banks on overnight loans to member banks.

Changes to this rate administered by the Federal Reserve System are closely watched as an indicator of future changes in the money supply and market interest rates.

Discount Securities. Non-interest bearing money market instruments that are issued at discount and redeemed at maturity for full face value. Examples include U.S Treasury Bills, Bankers’ Acceptances, and Commercial Paper.

Diversification. Dividing investment funds among a variety of securities, offering independent returns.

Duration. A statistical measure of the sensitivity of bond prices to changes in interest rates, and as such, a definition of interest rate risk. Higher duration indicates greater interest rate risk.

Fannie Mae. See “Federal National Mortgage Association”.

FDIC. See “Federal Deposit Insurance Corporation”.

Fed. See “Federal Reserve System”.

Federal Agency. A government-owned entity created by Congress, generally for the purpose of acting as a financial intermediary by borrowing in the marketplace and directing proceeds to specific areas of the economy considered to otherwise have restricted access to credit markets. In use, the term can also refer to a Government Sponsored Enterprise, although this is technically erroneous because Government Sponsored Enterprises, unlike Federal Agencies, are not owned by the U.S. Government.

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12 Federal Agency Security. A security issued by a Federal Agency. Federal Agency Securities are backed by the full faith and credit of the U.S. Government. In use, the term Federal Agency Security can also include securities issued by Government Sponsored Enterprises. The distinction between Federal Agency Securities and Government Sponsored Enterprise securities is important, because Government Sponsored Enterprise securities are not explicitly backed by the full faith and credit of the U.S. Government.

Federal Deposit Insurance Corporation (FDIC). Federal agency that insures deposits at commercial banks, currently to a limit of $100,000 per depositor per bank.

Federal Farm Credit Bank System (FFCB). A Government Sponsored Enterprise system that consolidates operations of the Banks for Cooperatives, Federal Intermediate Credit Banks, and Federal Land Banks, and provides financing assistance to the agricultural industry.

Federal Financial Institutions Examination Council (FFIEC). Formal Federal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the currency, and the Office of Thrift Supervision and to make recommendations to promote uniformity in the supervision of financial institutions.

Federal Funds (Fed Funds). Funds placed in Federal Reserve Banks by depository institutions in excess of current reserve requirements, or alternatively, funds lent or borrowed on an overnight or longer basis to and from other depository institutions.

Federal Funds Rate (Fed Funds Rate). The interest rate charged by a depository institution lending Federal Funds to another depository institution. The Federal Reserve Bank does not set or administer this market rate, but strongly influences it to the point of identifying a “target” Fed Funds rate associated with the Fed’s management of the Discount Rate.

Federal Home Loan Bank System (FHLB). A Government Sponsored Enterprise system, consisting of wholesale banks (currently twelve district banks) owned by their member banks, which provides correspondent banking services and credit to various financial institutions, financed by the issuance of securities. The principal purpose of the FHLB is to add liquidity to the mortgage markets.

Federal Home Loan Mortgage Corporation (FHLMC or “Freddie Mac”). A privately owned Government Sponsored Enterprise corporation that provides stability and assistance to the secondary market for home mortgages by purchasing first mortgages and participation interests financed by the sale of guaranteed mortgage backed securities.

Federal National Mortgage Association (FNMA or “Fannie Mae”). A privately owned Government Sponsored Enterprise corporation that adds liquidity to the mortgage market by purchasing mortgage loans from lenders, financed by the issuance of securities and sale of repackaged mortgages.

Federal Reserve Bank. Distinct bank of the Federal Reserve System.

Federal Reserve System (the Fed). The independent central bank system of the United States that establishes and conducts the nation’s monetary policy. This is accomplished in three major ways: 1) raising or lowering bank reserve requirements, 2) raising or lowering the Discount Rate, and 3) in open market operations by buying and selling government securities. The Federal Reserve System is made up of twelve Federal Reserve District Banks, their branches, and many national and state banks throughout the nation. It is headed by the seven member Board of Governors; “the Federal Reserve Board”.

FFIEC. See “Federal Financial Institutions Examination Council”.

Fitch Ratings. A financial services company that among other things provides investment quality ratings on debt issues from its nationally recognized proprietary ratings system, and quality ratings on commercial banks.

Floater. A floating rate security with an interest rate that resets at specified intervals according to an underlying index, such as LIBOR (London Interbank Offered Rate), and is based on a predetermined formula.

Freddie Mac. See “Federal Home Loan Mortgage Corporation”.

Ginnie Mae. See “Government National Mortgage Association”.

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13 Government National Mortgage Association (GNMA or “Ginnie Mae”). Government owned Federal Agency that acquires, packages, and resells mortgages and mortgage purchase commitments in the form of mortgage-backed securities.

Government Sponsored Enterprise (GSE). Privately owned entity subject to federal regulation and supervision, created by Congress for the purpose of acting as a financial intermediary by borrowing in the marketplace and directing proceeds to specific areas of the economy felt to otherwise have restricted access to credit markets.

Government Sponsored Enterprises are sometimes referred to as Federal Agencies, although this is technically erroneous because unlike Government Sponsored Enterprises, Federal Agencies are actually part of the U.S.

Government.

Government Sponsored Enterprise Security. A security issued by a Government Sponsored Enterprise.

Government Sponsored Enterprise securities are not explicitly backed by the full faith and credit of the U.S.

Government. However, the U.S. Government’s sponsorship support of Government Sponsored Enterprises is considered to provide implicit U.S. Government backing of securities issued by Government Sponsored Enterprises.

In use, the term Federal Agency Security can also include securities issued by Government Sponsored Enterprises, despite the different nature of U.S. Government support.

Inverse Floater. A floating rate security structured in such a way that it reacts inversely to the direction of interest rates.

Joint Powers Authority. In the context of this Investment Policy, two or more public agencies with the authority to invest funds in their treasuries that, by agreement, jointly exercise that common power. Such a joint powers authority may issues shares of beneficial interest to participating public agencies.

Liquidity. Relative ease and rapidity of converting an asset into cash without significant loss of value. Also, a relative measure of cash and near-cash items in a portfolio of assets. Also, a term describing the marketability of a money market security correlating to the narrowness of the spread between the bid and asked prices.

Local Agency Investment Fund (LAIF). Special fund in the California State Treasury which local agencies may access to deposit funds for investment and reinvestment.

Mark-to-market. Adjusting the value of an asset to its market value, reflecting in the process unrealized gains or losses.

Master Repurchase Agreement. A widely accepted standard agreement form published by the Public Securities Association that is used to govern and document Repurchase Agreements.

Maturity Date. Date on which principal payment of a financial obligation is due.

Medium Term Notes (MTN’s). Corporate or depository institution debt securities offered for a wide range of maturities. As applicable to allowable local agency investments, medium term notes have maximum remaining maturities of five years or less.

Money Market Mutual Fund. A type of mutual fund that invests solely in money market instruments, such as Treasury bills, commercial paper, bankers’ acceptances, repurchase agreements, and federal funds. Money market mutual funds are registered with the Securities and Exchange Commission under the Investment Company Act of 1940.

Moody’s Investors Service. A financial services company that among other things provides investment quality ratings on debt issues from its nationally recognized proprietary ratings system.

Mutual Fund. Portfolio of securities professionally managed by a sponsoring management or investment company that issues shares to investors. Many different types of mutual funds exist.

National Association of Securities Dealers (NASD). Self-policing trade association of over-the-counter brokers and dealers that establishes legal and ethical standards of conduct for its members.

Nationally Recognized Statistical-Rating Organization (NRSRO): One of Moody’s Investors Service, Standard & Poor’s, or Fitch Ratings.

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14 Negotiable Certificate of Deposit (Negotiable CD). A large denomination ($100,000 and larger) Certificate of Deposit that is issued in bearer form and that can be traded in the secondary market.

NRSRO: See “Nationally Recognized Statistical-Rating Organization”.

Offer. Price offered to sell securities. A potential buyer of securities asks for an offer. See also “Asked” and “Bid”.

Open Market Operations. A monetary policy tactic entailing the purchase or sale of government securities in the open market by the Federal Reserve System from and to primary dealers in order to influence the money supply, credit conditions, and interest rates.

Par Value. Face, or stated, value of a security as it appears on its certificate.

Passive Investment Management. An investment strategy that involves the purchase of securities with the intention of holding them to maturity, or investments in benchmark products designed to yield a market rate of return. See also “Active Investment Management”.

Portfolio. Collection of securities and investments held by an investor.

Premium. The amount by which a bond or other financial instrument sells above its face value. See also “Discount”.

Primary Dealer. Any of a group of designated government securities dealers that submit daily reports of market activity and security positions held to the Federal Reserve Bank of New York and are subject to its informal oversight.

Principal. Face value of a financial instrument on which interest accrues.

Prudent Investor Standard. California Government Code section 53600.3 classifies all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds as trustees and therefore fiduciaries subject to the prudent investor standard. The prudent investor standard requires that when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, 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 agency.

Public Securities Association (PSA). The bond market trade association that publishes a Master Repurchase Agreement, widely accepted as the industry standard document for Repurchase Agreements.

Range Note. A type of structured note that accrues interest daily at a set coupon rate that is tied to an index. Most range notes have two coupon levels; a higher accrual rate for the period the index is within a designated range, the lower accrual rate for the period that the index falls outside the designated range. This lower rate may be zero.

Rate of Return. Amount of income received from an investment, expressed as a percentage. When used as a measure of returns on a bond investment, same as “Current Yield”.

Repurchase Agreement (Repo). From the point of view of a buyer, an agreement under which a holder sells securities to the buyer and agrees to repurchase them at a specified price on a given date. In effect, the buyer of securities extends a collateralized loan to the seller.

Reverse Repurchase Agreement (Reverse Repo). From the point of view of a holder of securities, an agreement under which the holder sells securities to a buyer and agrees to repurchase them at a specified price on a given date.

In effect, the holder of securities borrows under a collateralized loan from the buyer.

Safekeeping. Service offered for a fee, usually by financial institutions, for the holding of securities and other valuables. Safekeeping is a component of custody services.

Salle Mae. See “Student Loan Marketing Association”.

Secondary Market. Markets for the purchase and sale of any previously issued financial instrument.

SEC. Securities and Exchange Commission.

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15 Security. A financial instrument that indicates a creditor relationship with the issuer of a debt obligation, or otherwise signifies rights of ownership.

Significantly Undercapitalized Bank: An FDIC insured depository institution with a total risk-based capital ratio of less than 6.0%, or a Tier 1 risk-based capital ratio of less than 3%, or a leverage ratio of less than 3.0%. See also “well capitalized bank”, “adequately capitalized bank”, “undercapitalized bank”, and “critically undercapitalized bank”.

Standard & Poor’s / Standard & Poor’s Ratings. Standard & Poor’s is a financial services company that among other things provides investment quality ratings on debt issues from its nationally recognized proprietary ratings system. These ratings are as follows:
‘AAA’: An obligation rated ‘AAA’ has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. ‘AA’: An obligation rated ‘AA’ differs from the highest rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong. ‘A’: An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong. ‘BBB’: An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

Obligations rated ‘AAA’ through ‘BBB’ are regarded by the market as investment grade. Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative characteristics. Obligations rated ‘D’ are in default.

The ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

STRIPS (Separate Trading of Registered Interest and Principal of Securities). Acronym applied to Treasury securities that have had their coupons and principal repayments separated into what effectively are zero-coupon Treasury bonds. The same technique, and “strips” description, is also be applied to non-Treasury securities.

Structured Notes. Notes issued by Government Sponsored Enterprises and corporations which have imbedded into their structure options such as call features, step-up coupons, floating rate coupons, and derivative-based returns.

Student Loan Marketing Association (SLMA or “Sallie Mae”). A Government Sponsored Enterprise that provides a secondary market in government guaranteed student loans and acts as a source of credit for lenders and individuals in the higher education market. In 1997, the Student Loan Marketing Association initiated a process of unwinding its status as a Government Sponsored Enterprise, however, until the process is complete all debt issued will be considered debt issued by a Government Sponsored Enterprise until maturity.

Treasuries. Collective term used to describe debt instruments backed by the U.S. Government and issued through the U.S. Department of the Treasury. Includes Treasury bills, Treasury notes, and Treasury bonds. Also a benchmark term used as a basis by which the yields of same maturity non-Treasury securities are compared (e.g., “trading at 50 basis points over Treasuries”).

Treasury Bills (T-bills). Highly liquid short-term debt securities backed by the U.S. Government and issued on a discount basis through the U.S. Department of the Treasury.

Treasury Bonds. Long-term interest bearing debt securities backed by the U.S. Government and issued with maturities of ten years and longer by the U.S. Department of the Treasury.

Treasury Constant Maturity Yield. Yields on U.S. Treasury securities at “constant maturity” (e.g., two years, etc.) interpolated from the daily yield curve and published by the U.S. Treasury. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded U.S. Treasury securities in the secondary market.

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16 Treasury Notes. Intermediate interest bearing debt securities backed by the U.S. Government and issued with maturities ranging from one to ten years by the U.S. Department of the Treasury.

Undercapitalized Bank: An FDIC insured depository institution with a total risk-based capital ratio of less than 8.0%, or a Tier 1 risk-based capital ratio of less than 4.0%, or a leverage ratio of less than 4.0% (or less than 3.0% if certain other standards are met). See also “well capitalized bank”, “adequately capitalized bank”, “significantly undercapitalized bank”, and “critically undercapitalized bank”.

Uniform Net Capital Rule. Securities and Exchange Commission requirement (15C3-1) regulating the maximum ratio of indebtedness to net liquid capital of member firms as well as non-member broker/dealers.

Weighted Average Days to Call. The average maturity of all securities and investments of a portfolio, adjusted to substitute the first call date per security for maturity date for those securities with call provisions. Determined by multiplying the par or principal value of each security or investment by its days to first call date, or maturity for those securities with no call provision, summing the products, and dividing the sum by the sum of the par or principal values of each security or investment.

Weighted Average Days to Maturity / Weighted Average Maturity. The average maturity of all securities and investments of a portfolio, determined by multiplying the par or principal value of each security or investment by its days to maturity, summing the products, and dividing the sum by the sum of the par or principal values of each security or investment.

Well Capitalized Bank: An FDIC insured depository institution with a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 6% or greater, a leverage ratio of 5.0% or greater, and which is not subject to any FDIC issued written agreement, order or directive to meet and maintain a specific capital level for any capital measure. See also “adequately capitalized bank”, “undercapitalized bank”, “significantly undercapitalized bank”, and “critically undercapitalized bank”.

Yield. Percentage return on an investment. There are numerous methods of yield determination. In this glossary, see also “Current Yield”, “Treasury Constant Maturity Yield, “Yield Curve”, “Yield to Call”, and “Yield to Maturity”.

Yield Curve. A graphic depiction of yields on like securities in relation to remaining maturities spread over a time line. “The” yield curve depicts yields on Treasuries.

Yield to Call. Same as Yield to Maturity, except the date of call is substituted for the date of maturity.

Yield to Maturity. Current income yield on a debt security minus any premium above par or plus any discount from par in purchase value, with the adjustment spread over the period from the date of purchase to the date of maturity of the debt security, expressed as a percentage.

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City Council Agenda Report
Meeting Date: June 16, 2026
Subject: AB 2561 Annual Reporting on Job Vacancies and Recruitment and Retention Efforts
Presenter: Carla Williams, Human Resources Manager
Proposed Action: Conduct a public hearing and receive public testimony, and receive and file the report.

Environmental Impact: None.

Fiscal Impact: None.

Background:

On January 1, 2025, Assembly Bill 2561 took effect and is intended to address the issue of job vacancies in local government. AB 2561 amended the Meyers-Milias-Brown Act (MMBA) by requiring public agencies to present information on job vacancies and recruitment and retention efforts at a public hearing before the City Council. The public hearing should take place at least once per fiscal year and prior to budget adoption.

The MMBA provides the foundation for labor relations in the public sector. As such, AB 2561 also allows bargaining units within an agency to present at the public hearing. If the vacancy rate within a particular bargaining unit exceeds 20%, the employee organization may request that additional information be presented at the hearing.

Discussion/Analysis:

Under AB 2561, the City is obligated to do the following:

1. Public Hearing: At least once per fiscal year at a public hearing before the City Council, present information regarding the status of vacancies and recruitment and retention efforts, and any necessary changes to policies, procedures or recruitment activities that may lead to obstacles in the hiring process. The public hearing must occur prior to the annual budget adoption. The City’s public hearing for this topic will occur prior to the annual budget adoption.

2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit to make a presentation during the public hearing. The City has one employee organization, the La Cañada Flintridge Employees’ Association (LCFEA). They have been invited to attend and participate at the public hearing.

3. Additional Reporting for High Vacancy Rates: If vacancies within a single bargaining unit exceed 20% of full-time positions in that unit, upon request of the employee organization, the City must provide additional information during the public hearing, including the following: (1) the total number of vacancies; (2) the number of applicants; (3) the average

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time to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. The vacancy rate for full-time positions represented by the LCFEA did not exceed 20% at any time during the 2025-2026 fiscal year through the end of May. However, some of the above information is provided in the report as part of the overview of the City’s recruitment and retention efforts.

Vacancies
AB 2561 does not provide specific guidance on which point(s) in time to use to analyze vacancies.

Staff examined the vacancy rates on a quarterly basis throughout this current fiscal year. AB 2561 states that the data should be focused on full-time positions in the bargaining unit Table 1. Quarterly Vacancy Rates for Full-Time LCFEA Positions for FY25-26 Table 1 provides information for full-time budgeted positions represented by the LCFEA bargaining unit. Since October of 2025, all full-time LCFEA positions have been filled and there have been no vacancies. Additionally, the City’s six unrepresented full-time positions (City Manager, Assistant City Manager, and four Department Directors) have also remained filled during this reporting period.

Under AB 2561, additional vacancy information is required if the vacancy rate for full-time budgeted positions within a bargaining unit meets or exceeds 20%. The City does not meet this threshold.

Recruitment Efforts
The recruitment process typically involves the following: receiving the request to fill a vacancy, opening the recruitment, sharing the ranked eligible list with the hiring department, conducting interviews, making a contingent offer, commencing the background process, extending a formal offer of employment, and scheduling the new employee’s start date and orientation.

In FY25-26, the City opened five recruitments, four of which were part-time positions. There continues to be an increasing number of applicants, especially for full-time positions. This fiscal year, there was an average of 76 days between the opening of the position and the employee’s first day.

Human Resources staff strives to maintain a high level of customer service to both the candidates and hiring managers throughout the recruitment process. For candidates, this includes things such as prompt acknowledgment of applications, follow-up communication, and providing feedback if requested. When a candidate requests feedback regarding their application, staff has taken this opportunity to solicit feedback from them about their experience as a candidate. Staff has received positive feedback about the recruitment process.

For the hiring managers, the process begins with a meeting to gain a deeper understanding of the position and ideal candidate before the recruitment opens. Staff then closely collaborates with the hiring manager for the remainder of the recruitment process.

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The City also recently implemented the NEOGOV recruitment system, which is widely used by other cities and government agencies. This will improve efficiency for staff and provide a modern, streamlined process for the applicant. Staff expects to conduct the first recruitment using this system in the new fiscal year.

Retention Efforts
Staff examined employee tenure data as part of the retention efforts analysis. Of the 25 budgeted full-time positions that are represented by the LCFEA, over half have five or more years of service with the City, including four employees with 20 or more years of service.

Figure 1. Employee Tenure for LCFEA Full-Time Positions as of May 2026 The City continues to attract and retain talented employees due to our competitive mix of compensation and benefits, internal promotions, transfer opportunities, and training and educational opportunities. Training and educational opportunities consist not only of job-related training but also things such as financial wellness education.

The recent classification and compensation study resulted in salary increases for all classifications.

Additionally, the classifications were analyzed to ensure employees are in the correct position and that the classifications incorporate current industry standards.

Benefits that contribute to the employees’ work-life balance include a 9/80 schedule, opportunities to telework as needed, and a supportive workplace that strives to accommodate employees’ individual family and personal needs.

Human Resources staff encourages employee feedback and communication through tools such as employee surveys and informal one-on-one meetings. The small size of the City also provides staff opportunities for cross-departmental collaboration and access to leadership that may not be found in larger organizations.

There were three employee separations that occurred during this fiscal year to date and all were part-time intern positions that separated at the end of their one-year internship.

Obstacles
AB 2561 requires that the City identify any necessary changes to policies, procedures or recruitment efforts that may lead to obstacles in the hiring process. The low vacancy rate,

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increasing applicant pool, and time to hire show that the City has not had difficulties with recruiting for positions during the past year. Recruitments have resulted in qualified candidates and all positions were filled in a timely manner.

At this time, there are no policies, procedures, or other items that are negatively impacting recruitment and retention efforts. Human Resources staff will continue to stay up-to-date with best practices relating to recruitment, retention, and employee satisfaction.

Options:

1. Conduct the public hearing, receive public testimony, and receive and file the report; or

2. Conduct the public hearing and provide further direction to staff; or

3. Defer action at this time.

Recommendation:

Option No. 1 - It is recommended that the City Council take the following actions: (1) Conduct a public hearing, receive public testimony, and receive and file the report.

Attachments:

1. AB2561 Text

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Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment.
[Approved by Governor September 22, 2024. Filed with
Secretary of State September 22, 2024.]
legislative counsel’s digest
AB 2561, McKinnor. Local public employees: vacant positions.

Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.

This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.

92 STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL

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The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares as follows:
(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements.
(b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.

SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a)  (1)  A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year.
(2)  If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget.
(3)  During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
(b)  The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c)  If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1)  The total number of job vacancies within the bargaining unit. (2)  The total number of applicants for vacant positions within the bargaining unit.
(3)  The average number of days to complete the hiring process from when a position is posted.
(4)  Opportunities to improve compensation and other working conditions. (d)  This section shall not prevent the governing board from holding additional public hearings about vacancies.
(e)  The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(f)  For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.

SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the 92 Ch. 409 — 2 —

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meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.

SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.

O
92 — 3 — Ch. 409

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City Council Agenda Report
Meeting Date: June 16, 2026
Subject: First Reading and Introduction of an Ordinance to Repeal and Replace Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code and Finding the Ordinance exempt from the California Environmental Quality Act
Presenter: Antonio Gardea, Assistant Director of Community Development Proposed Action: Motion to direct the City Attorney to read the ordinance by title only, waive further reading, and introduce the ordinance on a roll call vote Environmental Impact: The project is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15282 (h) which applies to adoption of an ordinance regarding second units in a single-family or multifamily residential zone by a city to implement Sections 66314, 66321, and 66323 of the Government Code as set forth in Section 21080.17 of the Public Resources Code
Fiscal Impact: None
Background:

On January 22, 2026, the Planning Commission initially considered the draft ordinance pertaining to Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADUs). City Council consideration of the item was continued to give staff time to make further edits to the draft ordinance and have the changes reconsidered by the Planning Commission. The additional changes were prompted by the intent to more closely align the Municipal Code to the ADU guidelines prepared by the California State Department of Housing and Community Development. On May 14, 2026, the Planning Commission considered the updates to the draft ordinance and recommended that the City Council adopt the proposed ordinance.

Discussion/Analysis:

On October 10, 2025, the Governor signed Senate Bill (SB) 543 and Assembly Bill (AB) 1154; both laws took effect January 1, 2026. Senate Bill 543 and Assembly Bill 1154 are the latest legislative actions enacted to address the state-wide housing crisis by facilitating the construction of ADUs and JADUs. While the bills did not substantially change the regulations, the adoption of the new state regulations requires the City to update its ADU regulations. Senate Bill 543 amended existing ADU law specifying the time allowed to determine if a project is complete for processing and creates an appeal process in the case that an ADU is denied. Assembly Bill 1154 changes the owneroccupancy requirements for junior accessory dwelling units (JADU) and requires that JADUs be rented for terms longer than 30 days, prohibiting short-term rentals.

State law supersedes the City’s local ordinance, until an amended ordinance is adopted and

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submitted to the Department of Housing and Community Development for review. In the interim, ADUs and JADUs must be processed in accordance with the requirements of the applicable Government Code sections. The proposed ordinance incorporates the recent changes into the Zoning Code. The Zone Change (PLAN-2025-0005) repeals and replaces Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code (LCFMC).

On January 22, 2026, and May 14, 2026, the Planning Commission considered changes to the definitions included in the draft ordinance, clarifications on the number and types (statewide exempt or non-exempt) of accessory dwelling units, as well as the inclusion and clarification of front setback requirements and height limits. Importantly, the provision allowing discretionary approval of ADU projects that do not meet defined development standards was omitted from the latest version of the ordinance. The Planning Commission supports the revisions to the zoning code incorporating the required changes and expressed a desire to provide neighboring property owners with notification of permitted projects, specifically accessory dwelling units in these instances.

Options:

1. Motion to direct the City Attorney to read the ordinance by title only, waive further reading, and introduce the ordinance on a roll call vote; or

2. Defer action and provide direction to staff.

Recommendation:

Option No. 1 – It is recommended that the City Council take the following action(s): Motion to direct the City Attorney to read the ordinance by title only, waive further reading, and introduce the ordinance on a roll call vote.

Attachments:

1. Proposed Accessory Dwelling Unit Ordinance

2. Planning Commission Resolution 26_21

3. Planning Commission Agenda Report (May 14, 2026)

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Attachment 1

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ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA CAÑADA

FLINTRIDGE FINDING THE ORDINANCE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT AND REPEALING AND
REPLACING CHAPTER 11.33 (ACCESSORY DWELLING UNITS) OF
TITLE 11 (ZONING) OF THE LA CAÑADA FLINTRIDGE MUNICIPAL

CODE ADOPTING REGULATIONS AND DEVELOPMENT STANDARDS

FOR ACCESSORY DWELLING UNITS
WHEREAS, state law provides that cities may adopt ordinances regulating the construction of accessory dwelling units (ADUs), consistent with the requirements of California Government Code Section 66310; and
WHEREAS, pursuant to Government Code Section 66316, if a city’s ADU ordinance is not consistent with state law, then only state law standards may be applied; and
WHEREAS, on May 20, 2025, the City Council adopted Ordinance No. 527 amending Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code; and
WHEREAS, on October 10, 2025; the Governor approved Senate Bill 543 and Assembly Bill 1154 amending state accessory dwelling unit and junior accessory dwelling unit regulations adjusted the timelines for processing ADUs and modifying the owner occupancy requirement for junior accessory dwelling units; and WHEREAS, the City now desires to repeal and replace Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code consistent with Government Code § 66317 and § 66333 to ensure the character of the City of La Cañada Flintridge is maintained to the extent permissible by law, and to continue to promote the health, safety, and welfare of the community; and WHEREAS, on January 22, 2026 and May 14. 2026, the Planning Commission considered the proposed amendments to the La Cañada Flintridge Municipal Code and recommended approval of the ordinance at duly-noticed public hearings, pursuant to the requirements of the La Cañada Flintridge Zoning Code and state law; and WHEREAS, on May 22, 2026, a notice was published in a newspaper of general circulation, providing notice of a public hearing before the City Council to be held on June 16, 2026, pursuant to the requirements of the La Cañada Flintridge Zoning Code and state law; and
WHEREAS, all legal prerequisites for the adoption of this Resolution have occurred.

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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA CAÑADA FLINTRIDGE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council further finds and determines that the above recitals are true and correct and are incorporated herein by reference.

SECTION 2. The City Council finds and determines that the adoption of the Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15282(h) of the CEQA Guidelines, which exempts from CEQA the adoption of an ordinance regarding second units.

SECTION 3. With regard to Zone Change (PLAN-2025-0005), the City Council finds as follows:

A. The California State Legislature and Governor passed and adopted legislation amending the California Government Code pertaining to accessory dwelling units and junior accessory dwelling units that now require revisions to Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code for consistency with State law.

B. The purpose of the Accessory Dwelling Unit Ordinance is to specifically provide for Accessory Dwelling Units within specified zones of the city, minimize the regulation and cost and decrease the timeframe for permitting such units. A new ordinance is required to remove any ambiguity and inconsistency in the application of State law through the provisions of the Zoning Code.

C. The proposed changes will properly apply City-wide to properties zoned R-1 (Single-Family Residential), R-3 (Multifamily), RDP (Residential Planned Development) and , any mixed use zone or land use designation within the Downtown Village Specific Plan where multifamily residential is planned or existing. Applicants who may wish to construct an Accessory Dwelling Unit in a permitted zone must be provided with development standards consistent with the requirements of recently enacted State law.

SECTION 4. Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code is hereby repealed in its entirety, and replaced with Chapter 11.33 (Accessory Dwelling Units), to read as follows:
“Chapter 11.33 ACCESSORY DWELLING UNITS”
§ 11.33.010 Accessory dwelling units—Purpose.

The purpose of this chapter is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code Sections 66314 and 66333.

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§ 11.33.020 Accessory dwelling units—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 condition, as defined in Section

11.33.030. This does not prevent the city from enforcing compliance with applicable building standards in accordance with California Health and Safety Code Section 17980.12.
§ 11.33.030 Accessory dwelling units—Definitions.

As used in this section, terms are defined as follows:
"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. It shall include 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 and include a separate exterior access. An accessory dwelling unit also includes an efficiency unit, as defined by California Health and Safety Code Section 17958.1 and a manufactured home, as defined by California Health and Safety Code Section 18007. "Accessory structure" means a detached subordinate building, the use of which is customarily incidental to that of the main building or to the main use of the land, and which is located on the same lot or parcel of land with the main building or use. "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.
“Efficiency dwelling unit” means a dwelling unit constructed in accordance with Health and Safety Code Section 17958.1 or the California Building Code Section 1208.4. "Efficiency kitchen" means a kitchen that includes each of the following:

A. A kitchen sink; and

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B. A cooking appliance; and
C. A refrigerator; and
D. A clear food preparation counter or counters (working space) of not less than 30 inches in front; and
E. Food storage cabinets of reasonable size in relation to the size of the JADU.
"Floor area (accessory dwelling unit) [FA(ADU)]" means the total square footage of the accessory dwelling unit (as measured from the inside perimeter of the exterior walls) under solid roof, including, but not limited to, habitable attics and basements and lofts. "Floor area (existing or proposed single-family dwelling) [FA(SFD)]" means the total square footage of the primary single-family dwelling under solid roof, including, but not limited to, habitable attics and basements, lofts and attached garages, but excluding volume space (as calculated within Section 11.11.050(B)2)), porches, patios, eaves, breezeways and any legally permitted attached ADU or JADU. "High quality transit corridor" means a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. See also "Major transit stop."
"Junior accessory dwelling unit" or "JADU" means a residential unit that:

A. Is a minimum of 190 square feet and no more than 500 square feet in size of interior livable space in size;
B. Is contained entirely within an existing or proposed single-family dwelling.

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major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods (CA Public Resources Code Section 21064.3). It also includes major transit stops that are included in the applicable regional transportation. See also "High quality transit corridor." "Nonconforming zoning condition" means a physical improvement on a property or a use of the property that does not conform with current zoning standards. “Non-Exempt ADU” means any ADU that is complies with the requirements of Government Code sections 66314-66322. The ADU may be attached or detached but must comply with the development standards contained within sections 11.33.050 and

11.33.060.
"Passageway" means a pathway that is unobstructed clear to the sky and extends from a street, whether public or private, or a private driveway to one entrance of the ADU or JADU.
"Proposed single-family dwelling" means a dwelling that is the subject of a building permit application and that meets the requirements for permitting. "Public transit" means a location, including, but not limited to, a bus stop or future train station, where the public may access buses, trains, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. See also "Major transit stop" and "High quality transit corridor."
"Statewide Exempt ADU/JADU" means ADUs and JADUs created pursuant to Government Code section 66323, including:

A. Single-Family Converted ADU/JADU - One accessory dwelling unit and junior accessory dwelling unit that is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure that must include exterior access;
B. Single- Family Detached ADU - One detached, new construction, accessory dwelling unit that is no more than 800 square feet in size and complies with the development standards as provided in Section

11.33.060;
C. Multifamily Converted ADU - Multiple accessory dwelling units within the portions of existing multifamily dwelling structures;
D. Multifamily Detached ADU - Multiple accessory dwelling units that are detached from a multifamily dwelling, subject to the objective development standards listed in Section 11.33.040.

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"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. § 11.33.040 Accessory dwelling units—Approvals.

The following approvals apply to ADUs and JADUs under this chapter:

A. Requirement for Ministerial Approval. If an ADU or JADU complies with each of the general requirements in Section 11.33.050 and specific requirements within Section 11.33.060 or Section 11.33.070, it shall be allowed with only applicable building permits, without discretionary review or hearing.

B. Timing.

1. a. The City shall determine whether an application to create or serve an ADU or JADU is complete and provide written notice of this determination to the applicant not later than 15 business days after the City receives the application.
b. If the City determines an application is incomplete, the City shall provide the applicant with a list of incomplete items and a description of how the application can be made complete. The list and description shall be provided with the written notice required by subparagraph (a). c. After receiving a notice that the application was incomplete, an applicant may cure and address the items that are deemed to be incomplete. d. In the review of an application submitted pursuant to subparagraph (c), the City shall not require the application to include an item that was not included in the list required by subparagraph (b).
e. If an applicant submits an application pursuant to subparagraph (c), the City shall determine whether the additional application has remedied all incomplete items listed in the determination issued pursuant to subparagraph (b). This additional application is subject to the timelines and requirements specified in subparagraph (a).
f. If the City does not make a timely determination as required by this paragraph, the application or resubmitted application shall be deemed to be complete for the purposes of this section.

2. The city shall approve or deny an application to create or construct an ADU or JADU within 60 days from the date that the city receives a completed application if there is an existing single-family or multifamily dwelling on the lot.

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3. Where a permit application for an ADU or JADU is submitted concurrently with a permit application to create a new single-family dwelling on the lot, the city may delay acting on the permit application for the ADU or JADU until the city acts on the permit application to create the new single-family dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing. a. Permit applications to create a new single-family dwelling which maximize the total floor/roofed area as contained within Chapter 11.11 and any applicable slope factor guideline contained within Chapter

11.35 may include an additional 800 square foot area to accommodate a statewide exempt single-family detached ADU.

4. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the requested delay.

5. Any denial of an ADU or JADU application requires provision of a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant within the sixty (60) day time period to approve or deny a permit application.

6. If a permit application is determined to be incomplete under paragraph (1) (a) or denied under paragraph (2) or (3), the applicant may appeal the incomplete determination or application denial to the Planning Commission.

7. A final written determination shall be provided not later than 60 business days after receipt of the applicant’s written appeal.

C. Location and Number.

1. An ADU or JADU shall only be allowed on a parcel zoned to allow singlefamily or multifamily dwelling residential uses and that includes a proposed or existing dwelling.

2. Lots with an existing or proposed single-family dwelling. The following may be provided on a single parcel:
a. One JADU (Statewide Exempt) within the proposed space of a singlefamily dwelling or existing space of a single-family dwelling or accessory structure, subject to the development standards set forth in Section 11.33.070. For the purpose of constructing a JADU, attached garages are part of a single-family dwelling; and
b. One ADU (Statewide Exempt) within the proposed or existing space of a single-family dwelling or accessory structure, subject to the development standards set forth in Section 11.33.070; and

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c. One detached, new construction Statewide Exempt ADU subject to the development standards set forth in Section 11.33.070, or a NonExempt attached or detached ADU, subject to the development standards set forth in Section 11.33.060:

3. Lots with existing or proposed multifamily dwellings. The following may be provided on a single parcel:
a. Multifamily Converted ADUs created 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. At least one converted ADU is allowed within an existing multifamily dwelling, and up to 25% of the existing multifamily dwelling units.
b. Multifamily Detached ADUs, not to exceed the number specified in clause (i) or (ii), as applicable that are located on a lot that has an existing or proposed multifamily dwelling and are subject to the standards listed in section 11.33.070:
i) Up to eight (8) detached ADUs, or as many detached ADUs as there are primary dwelling units, on a lot that has an existing multifamily dwelling or
ii) Up to two detached ADUs on a lot with a proposed multifamily dwelling;
§ 11.33.050 Accessory dwelling units—General requirements.

The following requirements apply to all ADUs and JADUs that are approved under this chapter:

A. Zoning. An ADU or JADU subject only to a building permit under Section 11.33.040 may be created on a lot in any R-1, R-3 zone or residential planned development (RPD) zone, public and semi-public zone, mixed use zone or DVSP (residential or mixed-use land use districts), if all of the applicable standards are met.

B. Survey Required. Where an ADU or JADU is proposed, either as a conversion of an existing structure or new construction, with setbacks of five feet or less from a property line or applicable easement, a survey shall be provided at time of permit application to ensure construction is located entirely on the subject property and outside of any applicable easement, unless permission to construct within the easement is granted by the easement holder.

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C. Fire Sprinklers. Fire sprinklers are required for an ADU or JADU if sprinklers are required in the primary residence or residences.

D. No Separate Conveyance. An ADU or JADU may be rented, but no ADU 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) unless the property was built by a nonprofit corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in a special no-interest loan program and all of the conditions under California Government Code Section 66341 are met.

E. Public Sewer Connection. If public sewers are available to the lot, both the existing or proposed single-family or multifamily dwelling and the ADU and/or JADU must be connected to the sewer service in order to receive a building permit. Further, if access to the public sewer is feasible for the lot subsequent to the initial issuance of a building permit, the permit shall be subject to connection of both the existing or proposed single-family or multifamily dwelling and ADU and/or JADU to such sewer service.

F. Septic System. Where connection to the public sewer is not feasible, as part of the application for a permit to create an ADU or JADU connected to a conventional or non-conventional on-site water treatment system, an approval from the Los Angeles County Department of Public Health shall be provided in compliance with the adopted Local Agency Management Program ordinance.

G. Rental Terms. No ADU or JADU may be rented for a term that is shorter than 30 days.

H. Conversion/Demolition Restriction. A legally constructed ADU or JADU may not be converted or demolished and rebuilt (except due to damage caused by natural disaster, fire or accident) to any other use for a period of ten years from the date a Certificate of Occupancy is granted for the ADU or JADU.

I. Utilities. The ADU may have wet and dry utilities that are separate from those of the primary dwelling unit, including gas, electricity, water and telephone service.

J. Demolition Permits. Where a demolition permit is required to replace a detached garage with an ADU, the demolition permit shall be issued concurrently with the building permit for the ADU.

K. Existing Conditions.

1. The city shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions,

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building code violations, or unpermitted structures (including the primary dwelling unit) that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.

2. The city shall not deny a building permit for an unpermitted ADU constructed before January 1, 2020, due to violations of building standards or noncompliance with ADU laws, unless it finds that correction of a violation is specifically necessary to protect health and safety of the occupants or public and/or buildings deemed substandard under the State Housing Law.

L. Tree Preservation. If removal of a protected tree is required to allow a non-exempt ADU, the property owner shall replace it with a protected tree at the 48-inch box size (minimum), unless a certified arborist determines planting is unfeasible, in which case, payment into the city's tree fund per adopted resolution of the city council for protected tree removal shall be required.

M. Occupancy Requirements

1. If the JADU shares sanitation facilities with the existing or proposed singlefamily dwelling, the owner of the property must reside in either the primary residence or the JADU.

2. If the JADU does not share sanitation facilities with the existing or proposed single-family dwelling, the property owner is not required to live in either the primary residence or the JADU.

N . Impact Fees. The city shall not impose any impact fee upon the development of an ADU that has 750 square feet of interior livable space or less or a JADU that has 500 square feet of interior livable space or less. Any impact fees charged for an accessory dwelling unit that has more than 750 square feet of interior livable space shall be charged proportionately in relation to the square footage of the primary dwelling unit.

1. An ADU or JADU that contains less than 500 square feet of interior livable space shall be considered other residential construction that does not increase assessable space by 500 square feet.
§ 11.33.060 Accessory dwelling units—Specific requirements for new construction.

The following standards apply to new construction ADU:

A. Maximum Size.

1. A detached, Statewide Exempt ADU shall be limited to a total floor area of not more than 800 square feet of livable space.

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2. A Non-Exempt ADU on a single family lot shall comply with the following maximum size requirements:
a. The cumulative size of any non-exempt ADU and any roofed areas exceeding the livable space of the ADU, and any existing or proposed single-family dwelling, and any other existing or proposed accessory structure(s) shall comply with the total floor/roofed area as contained within Chapter 11.11 and any applicable slope factor guideline contained within Chapter 11.35.
b. The total floor area [FA(ADU)] of an attached ADU shall not exceed 50% of the floor area [FA(SFD)].
c. The total floor area [FA(ADU)] of a detached or attached ADU shall not exceed 1,200 square feet of livable space.

3. Attached covered patios or trellises shall count toward the total floor/roofed area permitted for the lot as identified within Section 11.11.050.

B. Setbacks. ADUs and associated mechanical equipment shall comply with the setbacks identified below. Setbacks shall be measured from property lines or vehicular access easement, as verified by a survey pursuant to Section

11.33.050(B), whichever is applicable.

1. Front yard setbacks:
a. A Non-Exempt ADU shall comply with the front setback requirement within the underlying zone.
b. A Statewide Exempt ADU shall not be constructed or placed within a visibility triangle. A visibility triangle means an area located near a street or driveway intersection in which no structure or landscaping may be installed which will obstruct views or create a traffic or pedestrian hazard as indicated in the figure below. The visibility triangle area shall be measured 25 feet from the intersecting front and side property lot lines, easement line(s) or driveway, whichever is applicable, to ensure adequate site visibility for pedestrian and vehicular safety.

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Figure 1 - Visibility Triangle

2. Side and rear yard setbacks: four feet.

C. Height.

1. On lots with an existing or proposed single-family dwelling, height limitations are as follows:
a. An attached Non-Exempt ADU is subject to the applicable height limit of the zone or 25 feet. An attached ADU shall not exceed two stories. b. A detached ADU may not exceed:
i. 16 feet in height, measured to the peak of the structure consistent with Section 11.11.050(A)(1)(a); or

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ii. 18 feet, with an allowance of an additional two feet to accommodate a roof pitch aligned with the primary dwelling unit, if it is located within one-half mile walking distance of a major transit stop or high quality transit corridor.

2. On a lot with an existing or proposed multifamily dwelling, a detached ADU may not exceed 18 feet in height, measured from the lowest point at which the structure meets either natural grade or finished grade, whichever is lowest to the peak (highest point) of the structure, with an allowance of an additional two feet to accommodate a roof pitch aligned with the primary dwelling unit, if it is located within one-half mile walking distance of a major transit stop or high quality transit corridor.

D. Passageway. No passageway, as defined within Section 11.33.030, is required for an ADU.

E. Parking.

1. Generally. One off-street, on-site parking space is required for each NonExempt ADU, in addition to the parking requirement for the existing or proposed single-family dwelling, except as provided in subsection (E)(2), below. The additional parking space may be provided in setback areas or as tandem parking unless specific findings are made that parking in setback areas is not feasible based upon specific site or regional topographical or fire and life safety conditions. The additional space need not be covered but shall be paved or constructed utilizing an equivalent surface and accessible from a single, common driveway for both the existing or proposed singlefamily dwelling and the accessory units.

2. Exceptions. No additional parking is required for an ADU in any of the following situations:
a. The ADU is located within one-half mile walking distance of public transit, as defined in Section 11.33.030.
b. The ADU is located within an architecturally and historically significant historic district.
c. The ADU is attached to or located within an existing or proposed singlefamily dwelling or an existing accessory structure. 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.

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f. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this paragraph.

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

F. Objective Design Standards. The following development standards shall apply to Non-Exempt ADUs.

1. The ADU shall be consistent with the primary dwelling unit's roof pitch, window size, proportion of window units to wall size, direction of window openings, muntin pattern, exterior building materials, lighting fixtures, and paint colors. Elevations and floor plans shall be submitted as part of the building permit process.

2. The ADU must have an independent exterior entrance, apart from that of the primary dwelling. The ADU entrance shall not be on the same elevation/side of the primary dwelling entrance unless this entrance is screened from public views.

3. Any windows less than five feet (5’-0”) from a property line shall be obscured glass or clerestory windows placed at six feet (6’-0”) or higher above adjacent ground level.

4. Eaves shall not be greater than 12 inches.

5. Balconies, second story decks and roof top patios/terraces/decks shall be prohibited.

6. Mechanical equipment shall not be roof mounted
G. Historical Protections. Where an ADU is proposed on real property that is listed in the California Register of Historic Resources or on a lot that has an identified historical resource listed on the federal, state, or local register of historic places, the exterior architectural treatment of the ADU must comply with Chapter 11.90, Historic Preservation.
§ 11.33.070 Accessory dwelling units—Specific requirements for Statewide Exempt ADUs (conversion of existing structures or spaces).

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The following standards apply to existing structures or spaces converted to an ADU or JADU:

A. Maximum Size. An existing legally constructed structure may be demolished and rebuilt in the original location and to the same physical dimensions for the purposes of conversion to an ADU.

1. An expansion of not more than 150 square feet beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress.

2. Converted structures which are expanded more than the 150 square feet for ingress and egress are permitted to maintain nonconforming zoning conditions and expand in conformance with Section 11.33.060, Specific requirements for new construction.

B. Setback. No setback is required for a legally constructed existing structure that is converted to an accessory dwelling unit provided that the original side and rear setbacks are sufficient for fire safety, as determined by the local fire agency.

1. New mechanical equipment associated with conversion of existing structures or space is subject to setbacks established in Section

11.33.060(B).

C. Height. An existing structure that is converted to an accessory dwelling unit may maintain its existing permitted height. No increase in height shall be permitted, unless the existing structure is less than 16 feet, as permitted within Section

11.33.060(C)(1)(b).

D. Passageway. No passageway, as defined within Section 11.33.030, is required for an ADU.

E. Parking. No additional parking is required for an ADU located within an existing or proposed single-family or multifamily dwelling or an existing accessory structure.

F. Historical Protections. Where an ADU is proposed on real property that is listed in the California Register of Historic Resources or on a lot that has an identified historical resource listed on the federal, state, or local register of historic places, the ADU must comply with Chapter 11.90, Historic Preservation. § 11.33.080 Accessory dwelling units—Building code.

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applying building code requirements, if the space was previously unhabitable or was only permitted for nonresidential use and was converted.

SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any Person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other Person or circumstance. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 5. The City Clerk shall certify to the passage and adoption of this Ordinance and shall make a minute of the passage and adoption thereof in the records of and the proceeding of the City Council at which the same is passed and adopted. This Ordinance shall take effect thirty (30) days after its adoption in accordance with California Government Code Section 36937. The City Clerk shall cause a summary of this ordinance to be published in accordance with Government Code Section 36933 in a newspaper of general circulation, which is hereby designated for that purpose.

SECTION 6. This Ordinance shall go into effect 30 days after its adoption.

PASSED, APPROVED AND ADOPTED this ___ day of ____, 2026. _________________________________
Kim Bowman
Mayor
ATTEST:
______________________________
Tania Garcia
City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP

______________________________
Adrian Guerra, City Attorney

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Attachment 5

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PLAN-2025-0005 Page 1 of 22 05/14/2026 PC
CITY OF LA CAÑADA FLINTRIDGE
RESOLUTION NO. 26-21

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
LA CAÑADA FLINTRIDGE FINDING THE ORDINANCE EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND

RECOMMENDING THAT THE CITY COUNCIL OF THE CITY OF LA
CAÑADA FLINTRIDGE REPEAL AND REPLACE CHAPTER 11.33
(ACCESSORY DWELLING UNITS) OF TITLE 11 (ZONING) OF THE
LA CAÑADA FLINTRIDGE MUNICIPAL CODE (ZONE CHANGE PLAN2025-0005) WHEREAS, state law provides that cities may adopt ordinances regulating the construction of accessory dwelling units (ADUs), consistent with the requirements of California Government Code Section 66310; and
WHEREAS, pursuant to Government Code Section 66316, if a city’s ADU ordinance is not consistent with state law, then only state law standards may be applied; and
WHEREAS on October 10, 2025; the Governor approved Senate Bill 543 and Assembly Bill 1154 amending state accessory dwelling unit and junior accessory dwelling unit regulations adjusted the timelines for processing ADUs and modifying the owner occupancy requirement for junior accessory dwelling units; and WHEREAS, the City now desires to repeal and replace Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code consistent with Government Code section 66317 and 66333 to ensure the character of the City of La Cañada Flintridge is maintained to the extent permissible by law, and to continue to promote the health, safety, and welfare of the community; and WHEREAS, on December 25, 2025, a notice was published in a newspaper of general circulation, providing notice of a public hearing before the Planning Commission to be held on January 22, 2026, pursuant to the requirements of the La Cañada Flintridge Zoning Code and state law; and
WHEREAS, on April 23, 2026, a notice was published in a newspaper of general circulation, providing notice of a public hearing before the Planning Commission to be held on May 14, 2026, pursuant to the requirements of the La Cañada Flintridge Zoning Code and state law; and
Docusign Envelope ID: 34CF8C7C-5DF2-8887-83EA-01AC9F760ADA

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WHEREAS, all legal prerequisites for the adoption of this Resolution have occurred.

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LA CAÑADA FLINTRIDGE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The Planning Commission further finds and determines that the above recitals are true and correct and are incorporated herein by reference.

SECTION 2. The Planning Commission finds and determines that the adoption of the Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15282(h) of the CEQA Guidelines, which exempts from CEQA the adoption of an ordinance regarding second units.

SECTION 3. With regard to Zone Change (PLAN-2025-0005), the Planning Commission recommends the City Council find as follows:

C. The proposed changes will apply City-wide to properties zoned R-1 (SingleFamily Residential), R-3 (Multifamily), RDP (Residential Planned Development), P/SP (Public and Semi-Public), MU (mixed use), or DVSP (residential or mixed-use land use districts) where residential uses are permitted. Applicants who may wish to construct an Accessory Dwelling Unit in a permitted zone must be provided with development standards consistent with the requirements of recently enacted State law.

D. The proposed changes will be in the interest of public health, safety and general welfare and in conformity with good zoning practice because the ordinance amends the City’s requirements for Accessory Dwelling Units in compliance with the latest revisions to State law.

SECTION 4. The Planning Commission recommends that the City Council adopt an ordinance, attached hereto as Exhibit “A”, an ordinance titled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA CAÑADA FLINTRIDGE FINDING THE ORDINANCE Docusign Envelope ID: 34CF8C7C-5DF2-8887-83EA-01AC9F760ADA

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IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND REPEALING AND REPLACING CHAPTER 11.33 (ACCESSORY DWELLING UNITS) OF TITLE 11 (ZONING) OF THE LA CAÑADA FLINTRIDGE MUNICIPAL CODE, ADOPTING REGULATIONS AND DEVELOPMENT STANDARDS FOR ACCESSORY DWELLING UNITS” so as to bring the City of La Cañada Flintridge’s Zoning Code into compliance with Title 7, Division 1, Chapter 13 of the Government Code and the legislative amendments effective January 1, 2026.

PASSED, APPROVED AND ADOPTED this 14th day of May, 2026. _________________________________
Henry Oh
Chair of the Planning Commission
ATTEST:
______________________________
Susan Koleda, AICP
Secretary to the Planning Commission
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EXHIBIT A
CITY OF LA CAÑADA FLINTRIDGE
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA
CAÑADA FLINTRIDGE FINDING THE ORDINANCE EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND
REPEALING AND REPLACING CHAPTER 11.33 (ACCESSORY
DWELLING UNITS) OF TITLE 11 (ZONING) OF THE LA CAÑADA

FLINTRIDGE MUNICIPAL CODE ADOPTING REGULATIONS AND

DEVELOPMENT STANDARDS FOR ACCESSORY DWELLING UNITS
WHEREAS, state law provides that cities may adopt ordinances regulating the construction of accessory dwelling units (ADUs), consistent with the requirements of California Government Code Section 66310; and
WHEREAS, pursuant to Government Code Section 66316, if a city’s ADU ordinance is not consistent with state law, then only state law standards may be applied; and
WHEREAS, on May 20, 2025, the City Council adopted Ordinance No. 527 amending Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code; and
WHEREAS, on October 10, 2025; the Governor approved Senate Bill 543 and Assembly Bill 1154 amending state accessory dwelling unit and junior accessory dwelling unit regulations adjusted the timelines for processing ADUs and modifying the owner occupancy requirement for junior accessory dwelling units; and WHEREAS, the City now desires to repeal and replace Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code consistent with Government Code § 66317 and § 66333 to ensure the character of the City of La Cañada Flintridge is maintained to the extent permissible by law, and to continue to promote the health, safety, and welfare of the community; and WHEREAS, on May 22, 2026, a notice was published in a newspaper of general circulation, providing notice of a public hearing before the City Council to be held on June 16, 2026, pursuant to the requirements of the La Cañada Flintridge Zoning Code and state law; and
WHEREAS, all legal prerequisites for the adoption of this Resolution have occurred.

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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA CAÑADA FLINTRIDGE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council further finds and determines that the above recitals are true and correct and are incorporated herein by reference.

SECTION 3. With regard to Zone Change (PLAN-2025-0005), the City Council finds as follows:

C. The proposed changes will properly apply City-wide to properties zoned R-1 (Single-Family Residential), R-3 (Multifamily), and RDP (Residential Planned Development), where Accessory Dwelling Units are permitted by right. Applicants who may wish to construct an Accessory Dwelling Unit in a permitted zone must be provided with development standards consistent with the requirements of recently enacted State law.

D. The proposed changes will apply City-wide to properties zoned R-1 (Single Family Residential), R-3 (Multifamily), and RDP (Residential Planned Development) and will be in the interest of public health, safety and general welfare and in conformity with good zoning practice because the ordinance amends the City’s requirements for Accessory Dwelling Units in compliance with State law.

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“Chapter 11.33 ACCESSORY DWELLING UNITS”
§ 11.33.010 Accessory dwelling units—Purpose.

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 condition, as defined in Section

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"Accessory structure" means a detached subordinate building, the use of which is customarily incidental to that of the main building or to the main use of the land, and which is located on the same lot or parcel of land with the main building or use. "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.
“Efficiency dwelling unit” means a dwelling unit constructed in accordance with Health and Safety Code Section 17958.1 or the California Building Code Section 1208.4. "Efficiency kitchen" means a kitchen that includes each of the following:

A. A kitchen sink; and
B. A cooking facility with appliance;s. and
A.C. A refrigerator; and
B.D. A clear food preparation counter or counters (working space) of reasonable size in relation to the size of the JADUnot less than 30 inches in front; and.

C.E. Food storage cabinets of reasonable size in relation to the size of the JADU. "Floor area (accessory dwelling unit) [FA(ADU)]" means the total square footage of the accessory dwelling unit (as measured from the inside perimeter of the exterior walls) under solid roof, including, but not limited to, habitable attics and basements and lofts.
"Floor area (existing or proposed single-family dwelling) [FA(SFD)]" means the total square footage of the primary single-family dwelling under solid roof, including, but not limited to, habitable attics and basements, lofts and attached garages, but excluding volume space (as calculated within Section 11.11.050(B)2)), porches, patios, eaves, breezeways and any legally permitted attached ADU or JADU. "High quality transit corridor" means a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. See also "Major transit stop."
"Junior accessory dwelling unit" or "JADU" means a residential unit that:

A. Is a minimum of 190 square feet and no more than 500 square feet in size of interior livable space in size;
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B. Is contained entirely within an existing or proposed single-family dwelling.

Enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence; C. Includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family dwelling; and D. Includes an efficiency kitchen.
"Livable space" means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
"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. "Major transit stop" means a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods (CA Public Resources Code Section 21064.3). It also includes major transit stops that are included in the applicable regional transportation. See also "High quality transit corridor." "Nonconforming zoning condition" means a physical improvement on a property or a use of the property that does not conform with current zoning standards. “Non-Exempt ADU” means any ADU that is complies with the requirements of Government Code Sections 66314-66322. The ADU may be attached or detached but must comply with the development standards contained within Section 11.33.060. "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street, whether public or private, or a private driveway to one entrance of the ADU or JADU.
"Proposed single-family dwelling" means a dwelling that is the subject of a building permit application and that meets the requirements for permitting. "Public transit" means a location, including, but not limited to, a bus stop or future train station, where the public may access buses, trains, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. See also "Major transit stop" and "High quality transit corridor."
"Statewide Exempt ADU/JADU" means ADUs and JADUs created pursuant to Government Code section 66323, including:

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A. Single-Family Converted ADU/JADU - One accessory dwelling unit and junior accessory dwelling unit that is within the proposed space of a singlefamily dwelling or existing space of a single-family dwelling or accessory structure that must include exterior access;
B. Single- Family Detached ADU - One detached, new construction, accessory dwelling unit that is no more than 800 square feet in size and complies with the development standards as provided in Section 11.33.060; C. Multifamily Converted ADU - Multiple accessory dwelling units within the portions of existing multifamily dwelling structures;
D. Multifamily Detached ADU - Multiple accessory dwelling units that are detached from a multifamily dwelling, subject to the objective development standards listed in Section 11.33.040.
"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. § 11.33.040 Accessory dwelling units—Approvals.

The following approvals apply to ADUs and JADUs under this chapter:

B. Timing.

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d. In the review of an application submitted pursuant to subparagraph (c), the City shall not require the application to include an item that was not included in the list required by subparagraph (b).
e. If an applicant submits an application pursuant to subparagraph (c), the City shall determine whether the additional application has remedied all incomplete items listed in the determination issued pursuant to subparagraph (b). This additional application is subject to the timelines and requirements specified in subparagraph (a).
f. If the City does not make a timely determination as required by this paragraph, the application or resubmitted application shall be deemed to be complete for the purposes of this section.

4. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the requested delay.

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7. A final written determination shall be provided not later than 60 business days after receipt of the applicant’s written appeal.

C. Location and Number.

1. An ADU or JADU shall only be allowed on a parcel zoned to allow singlefamily or multifamily dwelling residential uses and that includes a proposed or existing dwelling.

2. Lots with an existing or proposed single-family dwelling. Single-Family Dwellings. The following may be provided on a single parcel:
a. One JADU (Statewide Exempt) within the proposed space of a singlefamily dwelling or existing space of a single-family dwelling or accessory structure, subject to the development standards set forth in Section

11.33.070. For the purpose of constructing a JADU, attached garages are part of a single-family dwelling; and .
b. One ADU (Statewide Exempt) within the proposed space of a singlefamily dwelling or existing space of a single-family dwelling or accessory structure, subject to the development standards set forth in Section

11.33.070; and
c. One detached, new construction detached Statewide Exempt ADU subject to the development standards set forth in Section 11.33.070, or a Non-Exempt attached or detached ADU, subject to the development standards set forth in Section 11.33.060:

3. Lots with existing or proposed mMultifamily dDwellings. The following may be provided on a single parcel:
a. Multiple Multifamily Converted ADUs created 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. At least one converted ADU is allowed within an existing multifamily dwelling, and up to 25% of the existing Docusign Envelope ID: 34CF8C7C-5DF2-8887-83EA-01AC9F760ADA

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multifamily dwelling units may each have a converted ADU under this subsection.
b. Multifamily Detached ADUs, not to exceed the number specified in clause (i) or (ii), as applicable that are located on a lot that has an existing or proposed multifamily dwelling and are subject to the standards listed in section 11.33.070:No more than eight detached ADUs, or as many detached ADUs as there are primary dwelling units, on a lot that has an existing multifamily dwelling.
i) Up to eight (8) detached ADUs, or as many detached ADUs as there are primary dwelling units, on a lot that has an existing multifamily dwelling or
ii) .Up to two detached ADUs on a lot with a proposed multifamily dwelling;
c. No more than two detached ADUs on a lot with a proposed multifamily dwelling.
§ 11.33.050 Accessory dwelling units—General requirements.

The following requirements apply to all ADUs and JADUs that are approved under this chapter:

A. Zoning. An ADU or JADU subject only to a building permit under Section 11.33.040 may be created on a lot in any single-family (R-1), multifamily (R-3) zone, residential planned development (RPD) zone, public and semi-public zone (P/SP), mixed use (MU) zone or the downtown village specific plan (DVSP -residential or mixed-use land use districts), if all of the applicable standards are met.

B. Property Line Survey Required. Where an ADU or JADU is proposed, either as a conversion of an existing structure or new construction, with setbacks of five feet or less from a property line or applicable easement, a property line survey shall be provided at time of permit application.

C. Fire Sprinklers. Fire sprinklers are required for an ADU or JADU if sprinklers are required in the primary residence or residences.

D. No Separate Conveyance. An ADU or JADU may be rented, but no ADU 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) unless the property was built by a nonprofit corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Docusign Envelope ID: 34CF8C7C-5DF2-8887-83EA-01AC9F760ADA

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Code for properties intended to be sold to low-income families who participate in a special no-interest loan program and all of the conditions under California Government Code Section 66341 are met.

G. Rental Terms. No accessory dwelling unitADU or junior accessory dwelling unitJADU may be rented for a term that is shorter than 30 days.

I. Utilities. The ADU may have wet and dry utilities that are separate from those of the primary dwelling unit, including gas, electricity, water and telephone service.

J. Demolition Permits. Where a demolition permit is required to replace a detached garage with an ADU, the demolition permit shall be issued concurrently with the building permit for the ADU.

K. Existing Conditions.

1. The city shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures (including the primary dwelling unit) that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.

2. The city shall not deny a building permit for an unpermitted ADU constructed before January 1, 2020, due to violations of building standards or non-compliance with ADU laws, unless it finds that correction of a Docusign Envelope ID: 34CF8C7C-5DF2-8887-83EA-01AC9F760ADA

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violation is specifically necessary to protect health and safety of the occupants or public and/or buildings deemed substandard under the State Housing Law.

L. Tree Preservation. If removal of a protected tree is required to provide a minimum 800 square footallow a non-exempt ADU, the property owner shall replace it with a protected tree at the 48-inch box size (minimum), unless a certified arborist determines planting is unfeasible, in which case, payment into the city's tree fund per adopted resolution of the city council for protected tree removal shall be required.

M. Occupancy Requirements

1. If the JADU shares sanitation facilities with the existing or proposed singlefamily dwelling, the owner of the property must reside in either the primary residence or the JADU.

2. If the JADU does not share sanitation facilities with the existing or proposed single-family dwelling, the property owner is not required to live in either the primary residence or the JADU.

The following standards apply to new construction ADUs or JADUs:

A. Maximum Size.

1. A detached, Statewide Exempt ADU shall be limited to a total floor area of not more than 800 square feet of livable space.

1.2. A Non-Exempt ADU on a single family lot shall comply with the following maximum size requirements:

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1. a. The cumulative size of any non-exempt ADU, and any roofed areas exceeding the livable space of the ADU, and JADU, any existing or proposed single-family dwelling, and any other existing or proposed accessory structure(s) shall comply with the total floor/roofed area as contained within Chapter 11.11 and any applicable slope factor guideline contained within Chapter 11.35.
a. Exception. When the total floor and roofed area as contained within Chapter 11.11 and any applicable slope factor guideline contained within Chapter 11.35 prohibits construction of an ADU of 800 square feet, one statewide exempt ADU on a lot with a proposed or existing single-family dwelling shall be permitted if the ADU is 800 square feet or less and complies with the development standards of this section.

2. b. The total floor area [FA(ADU)] of an attached ADU shall not exceed 50% of the floor area [FA(SFD)].

3. c. The total floor area [FA(ADU)] of a detached or attached ADU shall not exceed 1,200 square feet of livable space. or 500 square feet for a JADU of the FA(SFD).

2.3. Attached covered patios or trellises shall count toward the total floor/roofed area permitted for the lot as identified within Section 11.11.050.

11.33.050(B), whichever is applicable.

1. Front yard setbacks:
must comply with the underlying zoning requirement.
a. A Non-Exempt ADU shall comply with the underlying zoning requirement, A detached Statewide Exempt ADU unless there is no other alternative to allow for construction of an 800 square foot ADU that meets height limits and complies with four-foot side and rear setbacks. a.b. A Statewide Exempt ADU shall not be constructed or placed within a visibility triangle. A visibility triangle means an area located near a street or driveway intersection in which no structure or landscaping may be installed which will obstruct views or create a traffic or pedestrian hazard as indicated in the figure below. The visibility triangle area shall be measured 25 feet from the intersecting front and side property lot lines to ensure adequate site visibility for pedestrian and vehicular safety.

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2. Side and rear yard setbacks: four feet.

3. Mechanical equipment for the ADU shall not be roof mounted.

C. Height.

1. On lots with an existing or proposed single-family dwelling, height limitations are as follows:
a. An attached Non-Exempt ADU or JADU is subject to the applicable height limit of the zone or 25 feet. An attached ADU shall not exceed two stories.
b. A detached ADU may not exceed:

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i. 16 feet in height, measured to the peak of the structure consistent with Section 11.11.050(A)(1)(a); or
ii. 18 feet, with an allowance of an additional two feet to accommodate a roof pitch aligned with the primary dwelling unit, if it is located within one-half mile walking distance of a major transit stop or high quality transit corridor.

2. On a lot with an existing or proposed multifamily dwelling, a detached ADU may not exceed 18 feet in height, measured from the lowest point at which the structure meets either natural grade or finished grade, whichever is lowest to the peak (highest point) of the structure consistent with Section 11.01.030, with an allowance of an additional two feet to accommodate a roof pitch aligned with the primary dwelling unit, if it is located within one-half mile walking distance of a major transit stop or high quality transit corridor.

D. Passageway. No passageway, as defined within Section 11.33.030, is required for an ADU.

E. Parking.

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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. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this paragraph.

F. Objective Development Design Standards. The following development standards shall apply to Non-Exempt ADUs with the exception of statewide exempt ADUs.

3. Any windows less than five feet (5’-0”) from a property line shall be obscured glass or clerestory windows placed at six feet (6’-0”) or higher above adjacent ground level.

4. Eaves shall not be greater than 12 inches.

5. Balconies, second story decks and or roof top patios/terraces/decks shall be prohibitedare not permitted.

6. Mechanical equipment shall not be roof mounted
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G. Historical Protections. Where an ADU is proposed on real property that is listed in the California Register of Historic Resources or on a lot that has an identified historical resource listed on the federal, state, or local register of historic places, the exterior architectural treatment of the ADU must comply with Chapter 11.90, Historic Preservation.
§ 11.33.070 Accessory dwelling units—Specific requirements for Statewide Exempt ADUs (conversion of existing structures or spaces).

The following standards apply to existing structures or spaces converted to an ADU or JADU:

A. Maximum Size. An existing legally constructed structure may be demolished and rebuilt in the original location and to the same physical dimensions for the purposes of conversion to an ADU. This may include an expansion of not more than 150 square feet beyond the original footprint if necessary for ingress and egress.

1. An expansion of not more than 150 square feet beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress.

2. Converted structures which exceed 1,200 square feet cannot be further expanded with the exception of the 150 square feet for ingress and egress.

1. New mechanical equipment associated with conversion of existing structures or space is subject to setbacks established in Section

11.33.060(B).

11.33.060(C)(1)(b).

D. Passageway. No passageway, as defined within Section 11.33.030, is required for an ADU.

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E. Parking. No additional parking is required for an ADU located within an existing or proposed single-family or multifamily dwelling or an existing accessory structure.

G. Objective Development Standards. The following development standards shall apply:

1. The ADU must have an independent exterior entrance, apart from that of the primary dwelling. The ADU entrance shall not be on the same elevation/side of the primary dwelling entrance unless this entrance is screened from public views.

2. Any windows less than five feet from a property line shall be obscured glass or clerestory windows placed at six feet or higher above adjacent ground level.
§ 11.33.080 Accessory dwelling units—Building code.

Construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, absent express written findings by the building official that the construction of the unit could have a specific, adverse impact on public health and safety. The city can still determine a change in occupancy, for purposes of applying building code requirements, if the space was previously unhabitable or was only permitted for nonresidential use and was converted.
§ 11.33.090 Accessory dwelling units—Nonconforming ADUs and discretionary approval.

Any proposed ADU or JADU that does not conform to the objective standards set forth in Sections 11.33.010 through 11.33.070 may be allowed by the city with a conditional use permit, in accordance with the other provisions of this title.” SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any Person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other Person or circumstance. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase of Docusign Envelope ID: 34CF8C7C-5DF2-8887-83EA-01AC9F760ADA

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this Ordinance, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 6. This Ordinance shall go into effect 30 days after its adoption.

PASSED, APPROVED AND ADOPTED this ___ day of ____, 2026. _________________________________
Kim Bowman
Mayor
ATTEST:
______________________________
Tania Garcia
City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP

______________________________
Adrian Guerra, City Attorney
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State of California )
County of Los Angeles ) ss.

City of La Cañada Flintridge )
I, Susan Koleda, Secretary to the Planning Commission of the City of La Cañada Flintridge, California, do hereby certify that the foregoing Resolution No. 26-21 was duly adopted by the Planning Commission of the City of La Cañada Flintridge at a Regular Meeting held on the 14th day of May, 2026, by the following vote:

AYES: COMMISSIONER: APOSHIAN, DERHARTUNIAN, KOEPPEN, OH NOES: COMMISSIONER: NONE
ABSENT: COMMISSIONER: MEHROTRA
ABSTAIN: COMMISSIONER: NONE
Dated: May 15, 2026
____________________________________
Susan Koleda, AICP
Secretary to the Planning Commission
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Attachment 3

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Planning Commission Agenda Report
Meeting Date: May 14, 2026
Subject: Zone Change (PLAN-2025-0005) - A request to repeal and replace Chapter 11.33 (Accessory Dwelling Units) of the La Cañada Flintridge Municipal Code to implement new state law.

Presenter: Antonio Gardea
Assistant Director of Community Development
Proposed Action: Adopt Planning Commission Resolution No. 26-xx recommending that the City Council find the Ordinance exempt from the California Environmental Quality Act and approve Zone Change (PLAN-2025- 0005), repealing and replacing Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code Environmental Impact: The project is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15282 (h) of the California Code of Regulations which applies to adoption of an ordinance regarding second units in a single-family or multifamily residential zone by a city to implement Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333 of Chapter 13 of the Government Code as set forth in Section 21080.17 of the Public Resources Code
Background:

On January 22, 2026, the Planning Commission considered changes to the Zoning Code pertaining to accessory dwelling units (ADUs) in response to Senate Bill (SB) 543 and Assembly Bill (AB) 1154 that became effective on January 1, 2026. SB 543 expedites permit processing and AB 1154 clarifies occupancy requirements for a junior accessory dwelling unit (JADU) and prohibits short-term rental of JADUs.

Subsequent to the Planning Commission’s consideration and recommendation, the California Department of Housing and Community Development Department (HCD) provided information via a webinar and noted updates to the published ADU Guidelines. City Council consideration of the proposed ordinance was set for February 17, 2026 but was continued to enable further revisions to be incorporated into the draft ordinance to ensure compliance with state law. To best serve the public, the draft ordinance was revised to match the HCD Guidelines and provide specific information in the definitions, as well as move development standards into the appropriate subsection.

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Discussion/Analysis:

A red-lined version of the draft ordinance is attached and shows the difference between the version of the ordinance that brought forward and considered by the Planning Commission in January and the latest revisions recommended by staff. Several sections were edited as outlined below.

Definitions
As noted above, the definitions section is revised to move development standards into subsections

11.33.060 for non-exempt ADUs and 11.33.070 for State-wide exempt ADUs. ‘Efficiency dwelling unit’ was added as a definition to coincide with Government Code 66313 and text was added to the definition of ‘junior accessory dwelling unit’ and ‘efficiency kitchen’ to match the Title 24, Part 2, Section 1208.4 (Efficiency dwelling units) of the California Building Code. A definition for ‘nonexempt ADUs’ is provided, as well as clarification text for ‘Statewide exempt ADU.’ Importantly, detached new construction, statewide exempt ADUs are defined in state law by size. Therefore, the square footage, which is typically a development standard, remains included in the specific definition of the new construction, detached ‘statewide exempt ADU.’ Approvals
Location and Number
Section 11.30.040 includes the provisions for approval of ADUs including the location, by zone classification, and number of units allowed. Clarifying text has been included to this section, as well as cross references to applicable development and design standards. Three ADUs are permitted on properties with single-family houses: one JADU, one ADU converted from existing space either within the residence or within an existing detached structure, and one new construction, detached ADU. For multi-family properties, the allowed number is split into two subsections. Conversion of existing areas can incorporate 25% of the existing number of units with a minimum of one unit allowed. Also, up to eight new detached units, or as many as there exist on the property and be allowed for properties that are developed with existing multi-family units. For a new multi-family project, a maximum of two new detached units would be allowed.

Specific Requirements - Development / Design Standards
The revisions recommended by staff include edits to the development standards both for new construction ADUs and conversion of existing structures/spaces. For non-exempt ADUs, there is an overall floor area limit based on the underlying zoning code standards and a maximum of 1,200 square feet for a newly constructed ADU.

Front Setback / Site Visibility
While the state law does not set a standard for a front setback, Statewide exempt ADUs will be required to comply with the site visibility triangle for public safety purposes. The sight visibility triangle specifies that new ADUs cannot be placed in the 25-foot visibility triangle at the corners of lots to ensure pedestrian and vehicular safety. The diagram, reviewed by the City’s Traffic Engineer, was initially developed for the proposed Zoning Code update. Otherwise, non-exempt ADUs would be required to comply with the required front setback of the underlying zone classification.

Height
For multi-family ADUs, additional text was added to coincide with the recent recommendation from the Planning Commission to have one method for measuring height. The subsection also includes the provision to allow an additional two feet, even though there are no major transit stops nor high quality transit corridors within the City. Although the provision remains inapplicable, it was included to reflect the recently adopted state mandates.

Objective Design Standards
As noted above, several standards were placed in a separate subsection rather than included in

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either the definitions or as part of the development standards of non-exempt ADUs. Eave projections are limited to 12 inches to coincide with the general exemption from the floor (roofed) area calculation. Roof top decks and roof-mounted mechanical equipment are prohibited to prevent potential privacy and noise impacts for ADUs that built in close proximity to neighboring properties.

The objective design standards are not applicable to the conversion (statewide exempt) ADUs as local jurisdictions are not permitted to apply standards over and above those identified in state law.

As these features are not specifically allowed within state law for exempt ADUs, they will not be permitted.

Discretionary Approval
Lastly, the provision that enabled ADUs that did not otherwise comply with the development standards to be permitted through the Conditional Use Permit process has been deleted. In the past, the Planning Commission considered and ultimately denied applications of ADUs that either exceeded the 1,200 square foot size limit or exceeded the height limits. State law does not include provisions to grant a variance from the mandated standards. Because of the strict timelines for review and requirement for ministerial approval or denial of ADU applications, this section is being omitted from the draft ordinance.

Recommendation:

It is recommended that the Planning Commission adopt Resolution No. 26-xx recommending that the City Council find the project exempt from the California Environmental Quality Act and adopt an Ordinance approving Zone Change (PLAN-2025-0005), repealing and replacing Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code.

Attachments:

1. Draft Planning Commission Resolution

2. Excerpt of Minutes – 1/22/2026 Planning Commission Meeting

3. Planning Commission Agenda Report – January 22, 2026

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PLAN-2025-0005 Page 1 of 22 05/14/2026 PC
CITY OF LA CAÑADA FLINTRIDGE
RESOLUTION NO. 26-0X

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
LA CAÑADA FLINTRIDGE FINDING THE ORDINANCE EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND

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WHEREAS, all legal prerequisites for the adoption of this Resolution have occurred.

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LA CAÑADA FLINTRIDGE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The Planning Commission further finds and determines that the above recitals are true and correct and are incorporated herein by reference.

SECTION 3. With regard to Zone Change (PLAN-2025-0005), the Planning Commission recommends the City Council find as follows:

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PLAN-2025-0005 Page 3 of 22 05/14/2026 PC

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PLAN-2025-0005 Page 4 of 22 05/14/2026 PC

EXHIBIT A
CITY OF LA CAÑADA FLINTRIDGE
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA
CAÑADA FLINTRIDGE FINDING THE ORDINANCE EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND
REPEALING AND REPLACING CHAPTER 11.33 (ACCESSORY
DWELLING UNITS) OF TITLE 11 (ZONING) OF THE LA CAÑADA

FLINTRIDGE MUNICIPAL CODE ADOPTING REGULATIONS AND

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PLAN-2025-0005 Page 5 of 22 05/14/2026 PC
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA CAÑADA FLINTRIDGE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council further finds and determines that the above recitals are true and correct and are incorporated herein by reference.

SECTION 3. With regard to Zone Change (PLAN-2025-0005), the City Council finds as follows:

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“Chapter 11.33 ACCESSORY DWELLING UNITS”
§ 11.33.010 Accessory dwelling units—Purpose.

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 condition, as defined in Section

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A. Is a minimum of 190 square feet and no more than 500 square feet in size of interior livable space in size;

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PLAN-2025-0005 Page 8 of 22 05/14/2026 PC
B. Is contained entirely within an existing or proposed single-family dwelling.

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The following approvals apply to ADUs and JADUs under this chapter:

B. Timing.

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4. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the requested delay.

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PLAN-2025-0005 Page 11 of 22 05/14/2026 PC

7. A final written determination shall be provided not later than 60 business days after receipt of the applicant’s written appeal.

C. Location and Number.

1. An ADU or JADU shall only be allowed on a parcel zoned to allow singlefamily or multifamily dwelling residential uses and that includes a proposed or existing dwelling.

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multifamily dwelling units may each have a converted ADU under this subsection.
b. Multifamily Detached ADUs, not to exceed the number specified in clause (i) ro (ii), as applicable that are located on a lot that has an existing or proposed multifamily dwelling and are subject to the standards listed in section 11.33.070:No more than eight detached ADUs, or as many detached ADUs as there are primary dwelling units, on a lot that has an existing multifamily dwelling.
i) Up to eight (8) detached ADUs, or as many detached ADUs as there are primary dwelling units, on a lot that has an existing multifamily dwelling or
ii) .Up to two detached ADUs on a lot with a proposed multifamily dwelling;
c. No more than two detached ADUs on a lot with a proposed multifamily dwelling.
§ 11.33.050 Accessory dwelling units—General requirements.

The following requirements apply to all ADUs and JADUs that are approved under this chapter:

C. Fire Sprinklers. Fire sprinklers are required for an ADU or JADU if sprinklers are required in the primary residence or residences.

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G. Rental Terms. No accessory dwelling unitADU or junior accessory dwelling unitJADU may be rented for a term that is shorter than 30 days.

I. Utilities. The ADU may have wet and dry utilities that are separate from those of the primary dwelling unit, including gas, electricity, water and telephone service.

J. Demolition Permits. Where a demolition permit is required to replace a detached garage with an ADU, the demolition permit shall be issued concurrently with the building permit for the ADU.

K. Existing Conditions.

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violation is specifically necessary to protect health and safety of the occupants or public and/or buildings deemed substandard under the State Housing Law.

M. Occupancy Requirements

1. If the JADU shares sanitation facilities with the existing or proposed singlefamily dwelling, the owner of the property must reside in either the primary residence or the JADU.

2. If the JADU does not share sanitation facilities with the existing or proposed single-family dwelling, the property owner is not required to live in either the primary residence or the JADU.

The following standards apply to new construction ADUs or JADUs:

A. Maximum Size.

1. A detached, Statewide Exempt ADU shall be limited to a total floor area of not more than 800 square feet of livable space.

1.2. A Non-Exempt ADU on a single family lot shall comply with the following maximum size requirements:

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2. b. The total floor area [FA(ADU)] of an attached ADU shall not exceed 50% of the floor area [FA(SFD)].

3. c. The total floor area [FA(ADU)] of a detached or attached ADU shall not exceed 1,200 square feet of livable space. or 500 square feet for a JADU of the FA(SFD).

2.3. Attached covered patios or trellises shall count toward the total floor/roofed area permitted for the lot as identified within Section 11.11.050.

11.33.050(B), whichever is applicable.

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2. Side and rear yard setbacks: four feet.

3. Mechanical equipment for the ADU shall not be roof mounted.

C. Height.

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2. On a lot with an existing or proposed multifamily dwelling, a detached ADU may not exceed 18 feet in height, measured from the lowest point at which the structure meets either natural grade or finished grade, whichever is lowest to the peak (highest point) of the structure consistent with Section 11.01.030, with an allowance of an additional two feet to accommodate a roof pitch aligned with the primary dwelling unit, if it is located within one-half mile walking distance of a major transit stop or high quality transit corridor.

D. Passageway. No passageway, as defined within Section 11.33.030, is required for an ADU.

E. Parking.

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F. Objective Development Design Standards. The following development standards shall apply to Non-Exempt ADUs with the exception of statewide exempt ADUs.

3. Any windows less than five feet (5’-0”) from a property line shall be obscured glass or clerestory windows placed at six feet (6’-0”) or higher above adjacent ground level.

4. Eaves shall not be greater than 12 inches.

5. Balconies, second story decks and or roof top patios/terraces/decks shall be prohibitedare not permitted.

6. Mechanical equipment shall not be roof mounted

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The following standards apply to existing structures or spaces converted to an ADU or JADU:

1. An expansion of not more than 150 square feet beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress.

2. Converted structures which exceed 1,200 square feet cannot be further expanded with the exception of the 150 square feet for ingress and egress.

1. New mechanical equipment associated with conversion of existing structures or space is subject to setbacks established in Section

11.33.060(B).

11.33.060(C)(1)(b).

D. Passageway. No passageway, as defined within Section 11.33.030, is required for an ADU.

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G. Objective Development Standards. The following development standards shall apply:

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SECTION 6. This Ordinance shall go into effect 30 days after its adoption.

PASSED, APPROVED AND ADOPTED this ___ day of ____, 2026. _________________________________
Kim Bowman
Mayor
ATTEST:
______________________________
Tania Garcia
City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP

______________________________
Adrian Guerra, City Attorney

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State of California )
County of Los Angeles ) ss.

City of La Cañada Flintridge )
I, Susan Koleda, Secretary to the Planning Commission of the City of La Cañada Flintridge, California, do hereby certify that the foregoing Resolution No. 26-XX was duly adopted by the Planning Commission of the City of La Cañada Flintridge at a Regular Meeting held on the 14th day of May, 2026, by the following vote:

AYES: COMMISSIONER: APOSHIAN, DERHARTUNIAN, KOEPPEN, MEHROTRA, OH NOES: COMMISSIONER: NONE
ABSENT: COMMISSIONER: NONE
ABSTAIN: COMMISSIONER: NONE
Dated: May 15, 2026
____________________________________
Susan Koleda, AICP
Secretary to the Planning Commission

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City of La Cañada Flintridge January 22, 2026
Planning Commission Minutes City Council Chamber
Regular Meeting One Civic Center Drive
La Cañada Flintridge, CA 91011
Planning Commission Minutes Page 1 of 3 January 22, 2026 Regular Meeting

REGULAR COMMISSION MEETING
CALL TO ORDER: Chair Oh called the Regular Meeting to order at 6:01 p.m.

ROLL CALL: Chair Oh, Vice Chair Mehrotra and Commissioners Aposhian and Koeppen.

Commissioner DerHartunian arrived at 6:04 p.m.

STAFF PRESENT: City Attorney Guerra, Assistant Director Gardea, Planner Gjolme, Associate Planner Harris and Management Analyst Karaguozian.

PLEDGE OF ALLEGIANCE: Led by Chair Oh.

COMMENTS FROM THE PUBLIC: David Haxton.

REORDERING OF AND ADDITIONS TO THE AGENDA: The agenda was reordered to begin with Item 2 under Public Hearings.

CONSENT CALENDAR: None.

PUBLIC HEARINGS:

1. Zone Change (PLAN-2025-0005); Citywide ; City of La Cañada Flintridge: A request to repeal and replace Chapter 11.33 (Accessory Dwelling Units) of the La Cañada Flintridge Municipal Code to implement new state law pertaining to processing timelines for ADUs and owner occupancy requirements for Junior ADUs.

Associate Planner Harris provided a staff report and addressed questions from the Commission.

Chair Oh opened the public hearing at 7:24 p.m.

There were no public comments.

Chair Oh closed the public hearing at 7:25 p.m.

A MOTION was made by Commissioner DerHartunian, seconded by Chair Oh and carried 5 – 0 to: 1) adopt the proposed Resolution, recommending that the City Council find the Ordinance exempt from the California Environmental Quality Act and approve Zone Change (PLAN-2025-0005), repealing and replacing Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code.

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One Civic Center Drive • La Cañada Flintridge • California 91011 • (818) 790-8880 • FAX: (818) 790-7536 DIR Review:_____

PLANNING COMMISSION AGENDA REPORT
MEETING DATE: January 22, 2026
SUBJECT: Zone Change (PLAN-2025-0005) – Accessory Dwelling Units CASE PLANNER: Harriet Harris, Associate Planner
PROPOSED ACTION: Adopt Planning Commission Resolution No. 26-xx recommending that the City Council find the Ordinance
exempt from the California Environmental Quality Act and approve Zone Change (PLAN-2025-0005), repealing and
replacing Chapter 11.33 (Accessory Dwelling Units) of Title 11 (Zoning) of the La Cañada Flintridge Municipal Code

ENVIRONMENTAL
IMPACT:

Staff determined that the project is exempt from the
provisions of the California Environmental Quality Act
pursuant to Section 15282 (h) which applies to adoption of an ordinance regarding second units in a single-family or multifamily residential zone by a city to implement Sections 66314, 66321, and 66323 of the Government Code as set
forth in Section 21080.17 of the Public Resources Code
SUMMARY:

On October 10, 2025 the Governor signed Senate Bill (SB) 543 and Assembly Bill (AB) 1154; both laws took affect January 1, 2026. Senate Bill 543 amended existing accessory dwelling unit (ADU) law to reduce the time allowed to determine if a project is complete for further processing. Assembly Bill 1154 eliminates the owner-occupancy requirement for junior accessory dwelling units (JADU), unless the unit shares sanitation facilities with the primary residence, and requires that JADUs be rented for terms longer than 30 days, prohibiting short-term rentals. These revisions are the latest changes to ADU law as mandated by the State.

States law supersedes the City’s local ordinance, until an amended ordinance is adopted.

In the interim, ADUs and JADUs must be processed in accordance with the requirements of the new Government Code Chapter.

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La Cañada Flintridge City CouncilJune 16, 2026

La Cañada Flintridge City Council
June 16, 2026