Agenda packet, regular meeting — Rolling Hills City Council, February 9, 2026 (part 1 of 3)

1 City Council
Monday, February 9, 2026, 7:00 PM
Regular Meeting
City of Rolling Hills
The meeting agenda is available on the City’s website. The City Council meeting will be live-streamed on the City’s website. View both the agenda and the live-streamed video.

Members of the public may submit written comments by emailing the City Clerk’s office at [email protected]. Your comments will become part of the official meeting record if received before 3pm on the meeting day. You must provide your full name, but please do not provide any other personal information that you do not want to be published.

View recordings to City Council meetings online.

AGENDA

1. Call to Order

2. Roll Call

3. Pledge of Allegiance

4. Presentations/Proclamations/Announcements

5. Approve Order of the Agenda
This is the appropriate time for the Mayor or Councilmembers to approve the agenda as is or reorder.

6. Blue Folder Items (Supplemental)
Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and file.

6.A. For Blue Folder Documents approved at the City Council Meeting RECOMMENDATION: Receive and file.

7. Public Comment on Non-Agenda Items

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2 This is the appropriate time for members of the public to make comments regarding items not listed on this agenda. Pursuant to the Brown Act, no action will take place on any items not on the agenda.

8. Consent Calendar
Business items, except those formally noticed for public hearing, or those pulled for discussion are assigned to the Consent Calendar. The Mayor or any Councilmember may request that any Consent Calendar item(s) be removed, discussed, and acted upon separately. Items removed from the Consent Calendar will be taken up under the "Excluded Consent Calendar" section below. Those items remaining on the Consent Calendar will be approved in one motion. The Mayor will call on anyone wishing to address the City Council on any Consent Calendar item on the agenda, which has not been pulled by Councilmembers for discussion.

8.A. Approve Affidavit of Posting for the City Council Regular Meeting of February 9, 2026
RECOMMENDATION: Approve.

8.B. Approve Motion to Read by Title Only and Waive Further Reading of All Ordinances and Resolutions Listed on the Agenda
RECOMMENDATION: Approve

8.C. Approve the following Minutes of January 26, 2026: City Council Regular Meeting RECOMMENDATION: Approve as presented.

8.D. Payment of Bills
RECOMMENDATION: Approve as presented

9. Excluded Consent Calendar Items

10. Commission Items

11. Public Hearings

11.A.Site plan review for new construction, non-exempt grading and related improvements; variances for a detached garage within front and side yard area, detached pool house within rear yard area, deck exceeding 12”, import of soil, and to exceed 40 percent disturbance; Conditional Use Permit to exceed 200 square feet for accessory structures, and finding the project exempt from the California Environmental Quality Act for location at 10 Saddleback Road (Birkett) (Lot 17-2- RH)
RECOMMENDATION: Adopt Resolution No. 1403 and Find the Project Exempt from CEQA

12. Discussion Items

12.A.Receive and file the Fiscal Year 2025-26 Mid-Year Report RECOMMENDATION: Receive and file the Fiscal Year 2025-26 Mid-Year Report

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3 12.B.Discussion of Contract Performance and Potential Expansion of the City's Outdoor Emergency Warning System
RECOMMENDATION: Part One Recommendations:

Staff seeks City Council direction on the following:

1. Process payment of the remaining balance owed to HQE Systems for work performed under the Professional Services Agreement.

2. Contract Posture: select either Option 1 (Amend PSA to establish a more attainable performance framework) or Option 2 (Issue a formal notice of non-performance) as a standalone action.

3. Close out the HQE Professional Services Agreement.

Note: Selection of Option 1 allows the report to proceed to Discussion Part 2 and selection of Option 2 concludes Council consideration of this item for the meeting. No expansion decisions, funding authorizations, or design selections are included in this action.

Part Two Recommendations:

Staff seeks City Council direction on the following:

1. Bring back an amendment to the contract for the Upper Blackwater siren installation; and Authorize staff to proceed with obtaining all necessary permits and related coordination in order to implement the Upper Blackwater installation

2. Direct staff to proceed with community engagement (regarding the Chesterfield and Ringbit areas); and

3. Instruct staff to return at a later date with a separate staff report requesting Council consideration and approval of proposed siren locations in the Chesterfield and Ringbit areas.

13. Matters From the City Council

13.A.Consideration of taking a position on Supervisor Mitchell's proposed temporary five-year 1/2 cent sales tax measure to replace the state and federal funds lost due to the passage of H.R. 1
RECOMMENDATION: Receive and file. Provide direction to staff.

13.B.Reconsideration of directing staff to draft a Legislative and Policy Platform RECOMMENDATION: Receive and file. Provide direction to staff.

14. Matters From Staff

14.A.Receive a report on the current Coyote Management Program RECOMMENDATION: Receive and file and provide direction to staff

14.B.Receive and file a verbal update on the Tennis Court ADA project RECOMMENDATION: Receive and file.

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4 15. Recess to Closed Session

15.A.Conference with legal counsel - existing litigation Government Code Section 54956.9(d)(1) the City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the city in the litigation. (1 case) Name of case: Connie Andersen, et al. V. California Water Company, et al. (Seaview case) Case No.: 24STCV20953

16. Reconvene to Open Session

17. Adjournment
Next regular meeting: Monday, February 23, 2026 at 7:00 p.m. in the City Council Chamber, Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California, 90274.

Notice:

Public Comment is welcome on any item prior to City Council action on the item.

Documents pertaining to an agenda item received after the posting of the agenda are available for review in the City Clerk's office or at the meeting at which the item will be considered.

In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting.

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Item: 6.A.

Meeting Date: 2/9/2026
To: City Council
From: Christian Horvath, Assistant to the City Manager / City Clerk Thru: Karina Bañales, City Manager
Subject: For Blue Folder Documents approved at the City Council Meeting Background:

Discussion:

Fiscal Impact:

Recommendation:

Receive and file.

Attachments:

1. CL_AGN_260209_CC_Item12B

2. CL_AGN_260209_CC_Item13A

3. CL_AGN_260209_CC_Item14A

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BLUE FOLDER ITEM (SUPPLEMENTAL)
Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and file.

CITY COUNCIL MEETING
February 9, 2026
12B. Discussion of Contract Performance and Potential Expansion of the City's Outdoor Emergency Warning System
From: Christian Horvath, Assistant to the City Manager / City Clerk CL_AGN_260209_CC_Item12B_PublicComment01_Redacted.pdf

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CITY COUNCIL MEETING
February 9, 2026
13A. Consideration of taking a position on Supervisor Mitchell's proposed temporary five-year 1/2 cent sales tax measure to replace the state and federal funds lost due to the passage of H.R. 1
From: Christian Horvath, Assistant to the City Manager / City Clerk CL_AGN_260209_CC_PVE_OppositionLetter.pdf
CL_AGN_260209_CC_RPV_OppositionLetter.pdf

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CITY COUNCIL MEETING
February 9, 2026
14A. Receive a report on the current Coyote Management Program From: Christian Horvath, Assistant to the City Manager / City Clerk CL_AGN_260209_CC_Item14A_PublicComment01_Redacted.pdf

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Item: 8.A.

Meeting Date: 2/9/2026
To: City Council
From: Christian Horvath, Assistant to the City Manager / City Clerk Thru: Karina Bañales, City Manager
Subject: Approve Affidavit of Posting for the City Council Regular Meeting of February 9, 2026 Background:

None.

Discussion:

None.

Fiscal Impact:

None.

Recommendation:

Approve.

Attachments:

1. CL_AGN_260209_CC_AffidavitofPosting

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Administrative Report

8.A., File # 2026-11 Meeting Date:2/9/2026
To: MAYOR & CITY COUNCIL
From: Christian Horvath, City Clerk
TITLE
APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF FEBRUARY 9, 2026

EXECUTIVE SUMMARY

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) SS

CITY OF ROLLING HILLS )

AFFIDAVIT OF POSTING
In compliance with the Brown Act, the following materials have been posted at the locations below.

Legislative Body City Council
Posting Type Regular Meeting Agenda
Posting Location 2 Portuguese Bend Road, Rolling Hills, CA 90274 City Hall Window
City Website: https://www.rolling-hills.org/government/agendas_meetings.php https://rollinghillsca.portal.civicclerk.com/
Meeting Date & Time FEBRUARY 9, 2026 7:00pm Open Session As City Clerk of the City of Rolling Hills, I declare under penalty of perjury, the document noted above was posted at the date displayed below.

Christian Horvath, City Clerk
Date: February 6, 2026

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Item: 8.C.

Meeting Date: 2/9/2026
To: City Council
From: Christian Horvath, Assistant to the City Manager / City Clerk Thru: Karina Bañales, City Manager
Subject: Approve the following Minutes of January 26, 2026: City Council Regular Meeting Background:

None.

Discussion:

None.

Fiscal Impact:

None.

Recommendation:

Approve as presented.

Attachments:

1. CL_MIN_260126_CC_F

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MINUTES – CITY COUNCIL MEETING
Monday, January 26, 2026

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Minutes
Rolling Hills City Council
Monday, January 26, 2026
Regular Meeting 7:00 p.m.

1. Call To Order
The City Council of the City of Rolling Hills met in person on the above date at 7:00 p.m. Mayor Pieper presiding.

2. Roll Call
Councilmembers Present: Mirsch, Wilson, Pieper, Mayor Dieringer Councilmembers Absent: Black
Staff Present: Karina Bañales, City Manager
Christian Horvath, Assistant to the City Manager / City Clerk Benjamin Johnson, Code Compliance Office / Planning Technician Nicolas Papajohn, City Attorney

3. Pledge Of Allegiance – Councilmember Wilson

4. Presentations / Proclamations / Announcements – None

5. Approve Order of the Agenda
Motion by Councilmember Wilson, seconded by Councilmember Pieper to approve the order of the agenda.

Motion carried unanimously with the following vote:

AYES: Mirsch, Wilson, Pieper, Mayor Dieringer
NOES: None
ABSENT: Black

6. Blue Folder Items (Supplemental) – None

7. Public Comment on Non-Agenda Items
Public Comment: Lisa Tun, Sandy Cobb
Motion by Councilmember Pieper, seconded by Councilmember Mirsch to receive and file submitted images from Ms. Tun. Motion carried unanimously with the following vote:

AYES: Mirsch, Wilson, Pieper, Mayor Dieringer
NOES: None
ABSENT: Black

8. Consent Calendar

8.A. Approve Affidavit of Posting for the City Council Regular Meeting of January 26, 2026

8.B. Approve Motion to Read by Title Only and Waive Further Reading of All Ordinances and Resolutions Listed on the Agenda

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MINUTES – CITY COUNCIL MEETING
Monday, January 26, 2026

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8.C. Approve the following Minutes of January 12, 2026: City Council Regular Meeting

8.D. Payment of Bills

8.E. Republic Services Recycling Tonnage and Complaint Reports for December 2025

8.F. Pulled by Councilmember Mirsch
Motion by Councilmember Wilson, seconded by Councilmember Pieper to approve the Consent Calendar except for Item 8E, and with minor correction to the Minutes in Item 8C. Motion carried unanimously with the following vote:

AYES: Mirsch, Wilson, Pieper, Mayor Dieringer
NOES: None
ABSENT: Black

9. Excluded Consent Calendar Items

8.F. Adopt Resolution No. 1402 authorizing a Fiscal Year 2025-2026 Budget Modification to increase Appropriations by $111,150 in Fund 40-949 from a transfer of General Fund Reserves for providing Construction Services on the City Hall Emergency Backup Dual-Fuel Generator Project
Motion by Councilmember Mirsch, seconded by Councilmember Pieper to Adopt Resolution 1402. Motion carried unanimously with the following vote:

AYES: Mirsch, Wilson, Pieper, Mayor Dieringer
NOES: None
ABSENT: Black

10. Commission Items – None

11. Public Hearings – None

12. Discussion Items – None

13. Matters From the City Council
Mayor Dieringer notified the City Council of a potential proposed LA County temporary sales tax measure and requested it be agendized for discussion. She also requested agendizing a discussion on potential legislative policies.

Councilmember Pieper opined that he would prefer the City wait to take action until the other Peninsula or South Bay Cities took a collective position on potential legislative issues.

13.A. Discussion on potential reconsideration of allowing Palos Verdes Peninsula Transit Authority's Dial-A-Ride services as a future option for Rolling Hills residents Presentation by City Manager Bañales
Motion by Councilmember Pieper, seconded by Councilmember Mirsch to receive and file and take no action.

Motion carried with the following vote:

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MINUTES – CITY COUNCIL MEETING
Monday, January 26, 2026

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AYES: Mirsch, Wilson, Pieper, Mayor Dieringer
NOES: None
ABSENT: Black

14. Matters From Staff

14.A. Receive and file the Code Compliance Quarterly Report for the Fourth Quarter of 2025 (October 1 - December 31)
Presentation by Code Compliance Office / Planning Technician Johnson Motion by Councilmember Pieper, seconded by Councilmember Mirsch to receive and file. Motion carried unanimously with the following vote:

AYES: Mirsch, Wilson, Pieper, Mayor Dieringer
NOES: None
ABSENT: Black

14.B. Receive and file an update on recent legislative changes impacting key Brown Act provisions under Senate Bill 707
Presentation by Assistant to the City Manager / City Clerk Horvath Motion by Councilmember Pieper, seconded by Councilmember Wilson to receive and file. Motion carried unanimously with the following vote:

AYES: Mirsch, Wilson, Pieper, Mayor Dieringer
NOES: None
ABSENT: Black

14.C. Consideration of a 2026 City Council Strategic Planning Workshop Presentation by City Manager Bañales
Public Comment: Jim Aichele
Motion by Mayor Dieringer to hold a Strategic Planning Workshop for up to two hours in length. Motion failed for lack of a second.

Motion by Councilmember Pieper, seconded by Councilmember Mirsch to return with this item in six months.

Motion carried with the following vote:

AYES: Mirsch, Wilson, Pieper
NOES: Mayor Dieringer
ABSENT: Black

14.D. Consideration of a Civic Engagement Program for Rolling Hills Presentation by City Manager Bañales
Public Comment: Jim Aichele
The City Council provided direction to staff on limited ways to potentially create an engagement program.

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MINUTES – CITY COUNCIL MEETING
Monday, January 26, 2026

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15. Recess To Closed Session – None

16. Reconvene To Open Session – None

17. Adjournment: 8:47 p.m.

The meeting was adjourned at 8:47 p.m. on January 26, 2026. The next regular meeting of the City Council is scheduled to be held on Monday, February 9, 2026 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at:
https://www.rolling-hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website.

Respectfully submitted,
____________________________________
Christian Horvath, City Clerk
Approved,
____________________________________
Bea Dieringer, Mayor

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Item: 8.D.

Meeting Date: 2/9/2026
To: City Council
From: Christian Horvath, Assistant to the City Manager / City Clerk Thru: Karina Bañales, City Manager
Subject: Payment of Bills
Background:

None
Discussion:

None
Fiscal Impact:

None
Recommendation:

Approve as presented
Attachments:

1. CL_AGN_260209_CC_PaymentOfBills_E

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Item: 11.A.

Meeting Date: 2/9/2026
To: City Council
From: Reina Schaetzl, Wildan Principal Planner
Thru: Michael Ervin, Assistant City Attorney, Nicolas Papajohn, City Attorney, Karina Bañales, City Manager
Subject: Site plan review for new construction, non-exempt grading and related improvements; variances for a detached garage within front and side yard area, detached pool house within rear yard area, deck exceeding 12”, import of soil, and to exceed 40 percent disturbance; Conditional Use Permit to exceed 200 square feet for accessory structures, and finding the project exempt from the California Environmental Quality Act for location at 10 Saddleback Road (Birkett) (Lot 17-2-RH) Background:

At the January 12, 2026 meeting, City Council received the staff report and deliberated on the merits of the Project. The City Council directed staff and the applicant to address the following:

Resolution Findings pertaining to Site Plan Review (SPR) Ensure that the findings and supporting analysis for SPR entitlements in the resolution are consistent with the City’s pertinent zoning standards for Structural and Flatwork Coverages (Rolling Hills Municipal Code (“RHMC”) Section

17.16.070.A). City Council directed staff and the applicant to revise the plans and update the resolution.

Resolution Findings pertaining to Variances: Ensure that the findings and supporting analysis for the variance entitlements in the resolution are consistent with the City’s pertinent zoning standards for Lot --Disturbance (RHMC Section 17.16.070.B). City Council directed staff and the applicant to revise the plans and update the resolution.

Additionally, the City Council expressed concern about the appearance of the proposed detached garage within the 50-foot front yard setback. At the January 12 meeting, the City Council requested that the item be continued to the February 9 meeting to allow for a new public notice and hearing to review the project, including a morning field trip.

Applicant Request
On September 12, 2025, an application was duly filed by Deborah Richie-Bray, agent for Stephen and Elizabeth Birkett, requesting approval of the following proposed improvements (collectively referred to as the “Project”):

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• 786 square-foot, three-car, detached garage;
• 800 square-foot, detached pool house;
• 800 square-foot attached deck over 12”
• 450 sf stable area
• 550 sf corral area
In addition to the above structures, the Project also includes a new driveway with emergency access for fire truck turnaround, walkways, landscaping, and other related site work improvements. Additional features, such as a service yard and other hardscape elements, are proposed but are not subject to discretionary review.

Zoning, Location, and Lot Description
The property is zoned RAS-1. The subject property is located just east of Portuguese Bend Road with frontage on Saddleback Road. The rear of the property also abuts Palos Verdes Drive North (PVDN).

It is an irregular-shaped lot. The lot size is 1.07 acres and 36,590 square feet net, as calculated for development purposes. The site includes a 25-foot-wide roadway easement along Saddleback Road and a 100-foot-wide roadway easement along PVDN.

There are two building pads. Staff worked with the applicant to revise the plans since January 12, 2026, and to accurately reflect lot coverage and lot disturbance. The first residential building pad is 9,098 square feet and contains the existing house and garage. The second pad is 6,318 square feet, and includes the existing pool, deck areas and corral and stable area in the rear yard. The topography of the land is such that the rear building pad is set above the grade of PVDN and includes the large roadway easement making much of the rear of the property unavailable for development.

Additionally, the front of the property narrows towards Saddleback Road which further hinders development in the front yard area.

Discussion:

The Project must be analyzed and weighted against the required findings for the various entitlements for the project as detailed in the draft resolution. The City Council is limited to the record and evidence before it in analyzing the merits of the project. A decision must be based on the explicit RHMC findings and supported by evidence in the record. This discussion is geared towards the issues raised at the January 12, 2026, City Council meeting for the site plan review and variances, in chronological order as each appears in the RHMC and discussed below:

Site Plan Review
RHMC Section 17.16.070(A) limits the lot coverage to 35% of the net lot area. The applicant and staff revised the plans and resolution (see Section 8.A and Section 11.H of Draft Resolution No. 1403) to reflect that the project meets these site development requirements for a total of 34% lot coverage.

Variances
RHMC Section 17.16.070(B) limits the lot disturbed area to 40% of the net lot area. The applicant and staff revised the plans and resolution (see Section 11.K of Draft Resolution No. 1403) to reflect that the proposal exceeds the total disturbance by 11% for a total of 51% disturbance. Given the topography of the rear yard, the irregular shape of the property, the large roadway easement off PVDN, and the narrowing of the lot towards the front or Saddleback Road, a Variance is warranted.

RHMC Section 17.16.110 requires a 50’ front yard setback, and RHMC Section 17.16.120 requires a 20’ side yard setback for detached accessory structures. The applicant is requesting to construct the

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detached garage approximately 40’ from the front yard setback line and 10’ from the side yard setback line. This request has not changed, although concern was expressed at the January 12 meeting about the appearance of the garage from Saddleback Road. Given the irregular shape of the lot and its narrowing towards the front on Saddleback Road, a Variance is warranted.

Neighbor Concerns
There have been no responses to the public hearing notices mailed on January 28, 2026, as of the writing of this report.

Environmental Review
The Project has been determined to be exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15303, Class 3 (New Construction or Conversion of Small Structures), which exempts the construction and location of a limited number of new, small facilities or structures, including single family residence and accessory structures, including but not limited to garages, carports, patios, swimming pools and fences.

Fiscal Impact:

None.

Recommendation:

Adopt Resolution No. 1403 and Find the Project Exempt from CEQA Attachments:

1. PL_ADR_260205_10Saddleback_ZC25-101_RadiusMap

2. PL_ADR_10 SaddlebackRd_ZC25-101_Vicinity Map

3. 10 SaddlebackRd_ZC25-101 (SPR, CUP & VAR)_DevelopmentTable_2.5.26

4. ResolutionNo1403_10Saddleback_ZC25-101_F

5. PL_ADR_10SaddlebackRD_ZC25-101_Plans 2-4-26

6. CL_PBN_260209_PH_CC_10SaddlebackRd_Affidavit

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VICINITY MAP

City of Rolling Hills
TITLE VICINITY MAP CASE NO. Zoning Case No. 25-101
Site Plan Review, Conditional Use
Permit & Variances
OWNER Birkett
ADDRESS 10 Saddleback Rd, Rolling Hills, CA 90274

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Development Table
Zoning Case No. 25-101
ADDRESS: 10 Saddleback Road
Site Plan Review,
Conditional Use Permit &
Variance

EXISTING PROPOSED TOTAL
RA-S- 1 Zone SINGLE FAMILY

RESIDENCE, POOL, DECK
AND ATTACHED 4-CAR
CARAGE

SINGLE FAMILY

RESIDENCE, DECK, POOL

HOUSE AND DETACHED
GARAGE
Net Lot Area 36,590 SF 0 SF 36,590 SF
Residence 3,783 SF 0 SF 3,783 SF
Garage 0 SF 786 SF 786 SF
Swimming Pools/Spa 762 SF 0 SF 762 SF
Pool Equipment 98 SF 0 SF 98 SF
Pool House 0 SF 800 SF 800 SF
Stable
(450 SF Min. setaside)
450 SF 0 SF 450 SF
Corral
(550 SF Min. setaside)
550 SF 0 SF 550 SF
Attached Covered Porches 1,147 SF 0 SF 1,147 SF
Raised Deck + Water Feature + Fire Pit
+BBQ
*allowed deduction
7 SF 862 SF 869 SF
Service Yard 110 SF -2 SF 108 SF
Primary Driveway 3,691 SF -1,001 SF 2,690 SF
Paved walkways/Patio Areas/Courtyards 670 SF -154 SF 517 SF Pool Decking 1,782 SF -89 SF 1,693 SF
Grading
(balanced onsite, 20% Max)
94 CY CUT
231 CY FILL
325 CY
TOTAL
Structural Lot Coverage
(20% Max.)
5,900 SF (16%) 1,585 SF (4%) 7,485 SF (20%)
Flatwork Lot Coverage
(15% Max.)
6,144 SF (17%) -1,244 SF (-3%) 4,900 SF (14%)
Total Lot Coverage
Structures and Flatwork (35% Max.)
12,051 SF (33%) 294 SF (1%) 12,345 SF (34%)
Building Pad 1 Coverage
Existing Pad Area: 9,098 SF
4,933 SF (63%) 738 SF (8%) 5,671 SF (71%)

Building Pad 2 Coverage
Existing Pad Area: 6,318 SF
859 SF (14%)

800 SF (13%) 1,659 SF (27%)
Total Disturbed Area
(40% Max.)
13,602 SF (37%) 4,972 SF (14%) 18,574 SF (51%)
Building Heights
(21 FT Max.)
19 FT 8 IN -5 FT 2 IN 14 FT 6 IN

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Resolution No. 1403 1
RESOLUTION NO. 1403

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING

HILLS, CALIFORNIA GRANTING APPROVAL OF SITE PLAN REVIEW

FOR NEW CONSTRUCTION, NON-EXEMPT GRADING AND RELATED
IMPROVEMENTS; VARIANCES FOR A DETACHED GARAGE WITHIN

FRONT AND SIDE YARD AREA, DETACHED POOL HOUSE WITHIN
REAR YARD AREA, DECK EXCEEDING 12”, IMPORT OF SOIL, AND TO EXCEED 40 PERCENT DISTURBANCE; CONDITIONAL USE
PERMIT TO EXCEED 200 SQUARE FEET FOR ACCESSORY

STRUCTURES, AND FINDING THE PROJECT EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (LOT 17-2-RH)
(BIRKETT)

THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1. On September 12, 2025, an application was duly filed by Deborah RichieBray, agent with respect to real property located at 10 Saddleback Road, Rolling Hills (Lot 36- FT) requesting a Site Plan Review for new construction including a new detached garage and detached pool house, non-exempt grading and related improvements; Variances for construction of the detached garage within the front and side yard areas, construction of the detached pool house within the rear yard area, deck exceeding 12”, import of soil and to exceed 40 percent disturbance; and a Conditional Use Permit to exceed the 200 square feet allowable area for both accessory structures.

Section 2. The property is zoned RAS-1 and is 1.07 acres gross and 36,590 square feet net, as calculated for development purposes. The property is located east of Portuguese Bend Road on Saddleback Road. There are two street frontages for the property. The shorter street frontage is along Saddleback Road and the longer street frontage, or rear of the property, abuts Palos Verdes Drive North (PVDN). The property is irregularly shaped and the topography is above grade off PVDN and becomes sloped within the interior of the lot towards Saddleback Road. There is a 25-foot-wide roadway easement along Saddleback Road and 100-foot-wide roadway easement along PVDN.

Section 3. The Planning Commission conducted duly noticed public hearings to consider the application at its field trip meeting and regular meeting on December 2, 2025.

Neighbors within a 1,000-foot radius were notified of the public hearings and a notice was published in the Daily Breeze on November 8, 2025. The applicants and their agent were notified of the public hearings in writing by first class mail and the agent was in attendance at the hearings. Evidence was heard and presented from all persons interested in affecting said proposal.

Section 4. The Planning Commission found that the project qualifies as a Class 3 (New Construction or Conversion of Small Structures), which exempts the construction and location of a limited number of new, small facilities or structures, including accessory structures, including

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Resolution No. 1403 2
but not limited to garages, carports, patios, swimming pools and fences. Here, the proposed Project is the construction of two small structures, a detached garage and pool house, and is therefore categorically exempt from environmental review under the California Environmental Quality Act.

Section 5. The Planning Commission at their December 2, 2025 meeting adopted a Resolution approving the project. Following Planning Commission approval of the project, the City Council at their January 12, 2026 took jurisdiction of the project. Pursuant to Section

17.54.015 of the Rolling Hills Municipal Code, a review hearing for cases taken under jurisdiction by the City Council shall be conducted as de novo hearings.

Section 6. The City Council conducted duly noticed public hearings to consider the application on February 9, 2026, in the field and at their regularly scheduled meeting on February 9, 2026. Neighbors within 1,000-foot radius were notified of the public hearings and a notice was posted in three public places pursuant to Government Code Section 65090 on January 28, 2026.

The applicants were notified of the public hearings in writing by first class mail. Evidence was heard and presented from all persons interested in affecting said proposal.

Section 7. The City Council finds that the project qualifies as a Class 3 (New Construction or Conversion of Small Structures), which exempts the construction and location of a limited number of new, small facilities or structures, including accessory structures, including but not limited to garages, carports, patios, swimming pools and fences. Here, the proposed Project is the construction of two small structures, a detached garage and pool house, and is therefore categorically exempt from environmental review under the California Environmental Quality Act.

Section 8. Site Plan Review Findings. Site Plan Review is required for construction of any new structure pursuant to RHMC Section 17.46.020. With respect to the Site Plan Review for the proposed development, the City Council hereby makes the following findings:

A. The project complies with and is consistent with the goals and policies of the General Plan and all requirements of the zoning ordinance.

The proposed development is compatible with the General Plan, the Zoning Ordinance and surrounding uses because the proposed structures comply with the General Plan requirement of low profile, low-density residential development with sufficient open space between surrounding structures. The project conforms to Zoning Code setback requirements with the Variance approved by this Resolution. The lot is 1.07 acres net and 36,590 square feet net, as calculated for development purposes. The size of the existing and proposed structures will be 7,485 square feet, which constitutes 20% of the net lot area, and the flatwork and driveways will be 4,900 square feet which equals 14% of the net lot, and the total structural and flatwork is 12,345 square feet or 34% which is within the 35% maximum overall lot coverage permitted pursuant to RHMC Section 17.16.070(A). The proposed project is screened from the road so as to reduce the visual impact of the development.

B. The project substantially preserves the natural and undeveloped state of the lot by minimizing building coverage. Lot coverage requirements are regarded as maximums, and the actual amount of lot coverage permitted depends upon the existing buildable area of the lot.

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Resolution No. 1403 3
The project substantially preserves the natural and undeveloped state of the lot by minimizing building coverage. The topography and the configuration of the lot, has been considered, and it was determined that the proposed development will not adversely affect or be materially detrimental to adjacent uses, buildings, or structures because the proposed construction will be constructed on an existing building pad, will be the least intrusive to surrounding properties, will be screened and landscaped with mature trees and shrubs, is of sufficient distance from nearby residences so that it will not impact the view or privacy of surrounding neighbors, and will permit the owners to enjoy their property without deleterious infringement on the rights of surrounding property owners.

C. The project is harmonious in scale and mass with the site, the natural terrain and surrounding residences.

The proposed development, as conditioned, is harmonious in scale and mass with the site, and is consistent with the scale of the neighborhood when compared to properties in the vicinity. The proposed garage will follow the pattern and style of the original residence.

D. The project preserves and integrates into the site design, to the greatest extent possible, existing topographic features of the site, including surrounding native vegetation, mature trees, drainage courses and land forms (such as hillsides and knolls).

The development plan incorporates existing trees and native vegetation to the maximum extent feasible. Specifically, the development plan will supplement the existing vegetation with landscaping that is compatible with and enhances the rural character of the community.

E. Grading has been designed to follow natural contours of the site and to minimize the amount of grading required to create the building area.

The development plan substantially preserves the natural and undeveloped state of the lot by minimizing building coverage because the new structure will not cause the lot to look overdeveloped. The proposed detached pool house will not be visible from PVDN or Saddleback Road. Additionally, the proposed detached garage will be screened from Saddleback Road with enhanced landscape.

F. Grading will not modify existing drainage channels nor redirect drainage flow, unless such flow is redirected into an existing drainage course.

The property will still maintain the existing terrain and existing drainage will remain as there will be no proposed grading. Drainage will continue to flow in the existing drainage course.

G. The project preserves surrounding native vegetation and mature trees and supplements these elements with drought-tolerant landscaping which is compatible with and enhances the rural character of the community, and landscaping provides a buffer or transition area between private and public areas.

Landscaping will meet the requirements of the water efficient landscape ordinance and incorporate low impact development practices. Surrounding native vegetation and mature trees

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Resolution No. 1403 4
will not be affected and new landscaping will be considerate of the environment and will enhance the rural character of the community.

H. The project is sensitive and not detrimental to the convenience and safety of circulation for pedestrians and vehicles.

The proposed development is sensitive and not detrimental to the convenience and safety of circulation for pedestrians and vehicles because the proposed project will not change the existing circulation pattern and will utilize an existing driveway.

I. The project conforms to the requirements of the California Environmental Quality Act (CEQA).

The project is exempt from the requirements of the California Environmental Quality Act.

Section 9. Conditional Use Permits Findings. Section 17.16.030(Q) permits detached garages and similar accessory structures not to exceed two hundred square feet, subject to the requirements of Section 17.16.200(L). The applicant is requesting to construct a new 786 square foot detached garage and 800 square foot detached pool house. These structures will require a Conditional Use Permit, pursuant to RHMC Section 17.16.210(A)(4) (detached garage) and RHMC Section 17.16.210(A)(5) (guest house). With respect to this request for a Conditional Use Permit, the Planning Commission finds as follows:

A. That the proposed conditional use is consistent with the General Plan.

The granting of a Conditional Use Permit for the construction of a detached garage and detached pool house would be consistent with the purposes and objectives of the Zoning Ordinance and General Plan and because the use is consistent with similar uses in the community. The area proposed for the detached garage and detached pool house are in areas on the property where impervious surface already exists and will not change the existing configuration of structures on the lot.

B. The nature, condition and development of adjacent uses, buildings and structures have been considered, and that the use will not adversely affect or be materially detrimental to these adjacent uses, building or structures.

The nature, condition, and development of adjacent uses, buildings, and structures have been considered, and the construction of a detached garage and detached pool house will not adversely affect or be materially detrimental to these adjacent uses, buildings, or structures because the proposed garage will not impact the view or privacy of surrounding neighbors.

C. That the site for the proposed conditional use is of adequate size and shape to accommodate the use and buildings proposed.

The project is harmonious in scale and mass with the site, the natural terrain, and surrounding residences because the detached garage and pool house will comply with the low profile residential development pattern of the community.

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Resolution No. 1403 5
D. That the proposed conditional use complies with all applicable development standards of the zone district.

The proposed conditional use complies with all applicable development standards of the zone district because the 786 square foot size of the detached garage and 800 square foot pool house are permitted under the Municipal Code, with the Conditional Use Permit as approved in this Resolution.

E. That the proposed use is consistent with the portions of the Los Angeles County Hazardous Waste Management Plan relating to siting and siting criteria for hazardous waste facilities.

The proposed conditional use is consistent with the portions of the Los Angeles County Hazardous Waste Management Plan relating to siting and siting criteria for hazardous waste facilities because the project site is not listed on the current State of California Hazardous Waste and Substances Sites List.

F. That the proposed conditional use observes the spirit and intent of this title.

The proposed conditional use observes the spirit and intent of Title 17 of the Zoning Code because it will not be visible from the road or neighboring properties. An area for a future stable and corral has been set aside on the site.

Section 10. Variance Findings. RHMC Section 17.16.110 requires a 50’ front and rear yard setback for all structures including accessory structures. RHMC Section 17.16.120 requires a 20’ side yard setback for all structures, including accessory structures. Further, RHMC Section

17.16.210(A)(4)(a) of the Rolling Hills Municipal Code permits approval of a detached garages and pool houses under certain conditions, provided a Variance to deviate from any of the conditions is approved by the Planning Commission or City Council. The applicant is requesting to construct the detached garage approximately 40’ from the front yard setback line and 10’ from the side yard setback line. Additionally, the applicant is requesting to construct the detached pool house in the rear yard approximately 27’ from the rear yard setback line.

RHMC Section 17.12.040 defines a deck as any platform elevated above the ground by means of pylons and further restricts the height to not exceed one foot above ground. The applicant is requesting a deck at 2.41 feet in height.

Finally, RHMC Section 17.16.230 requires the import and export of soil be balanced on site.

The Project requires 136.7 cubic yards (CY) of soil to be imported in order to construct the proposed deck attached to the house.

With respect to the request for the Variances mentioned above, the City Council finds as follows:

A. That there are exceptional or extraordinary circumstances or conditions applicable to the property that do not apply generally to other properties in the same vicinity and zone.

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Resolution No. 1403 6
There are exceptional and extraordinary circumstances and conditions applicable to the property that do not apply generally to the other property or class of use in the same zone. The property is zoned RAS-1. The subject property is located just east of Portuguese Bend Road with frontage on Saddleback Road. The rear of the property also abuts Palos Verdes Drive North (PVDN). It is an irregular shaped lot. The lot size is 1.07 acres and 36,590 square feet net, as calculated for development purposes. The site includes a 25-foot-wide roadway easement along Saddleback Road and 100-foot-wide roadway easement along PVDN.

There are two building pads. The first residential building pad is 9,098 square feet and contains the existing house and garage. The second pad is 6,318 square feet, and includes the existing pool and deck areas. The topography of the land is such that the rear building pad is set above the grade of the PVDN and includes the large roadway easement making much of the rear of the property unavailable for development. Additionally, the front of the property narrows towards Saddleback Road which further hinders development in the front yard area.

B. That such variance is necessary for the preservation and enjoyment of substantial property rights possessed by other properties in the same vicinity and zone but which is denied the property in question.

The Variance is necessary for the preservation and enjoyment of a substantial property right possessed by other property in the same vicinity and zone, but which is denied to the property in question. The Variance is necessary because the existing terrain and development on the lot creates a difficulty in placing the garage or pool house elsewhere on the property. Additionally, given the terrain of building pad 2, the import of 136.7 cubic yards of soil is necessary to construct portions of the deck at the rear. The increase in height of the deck is also necessary to maintain the level of the deck, given the topography of rear of the property. Ultimately, given the topography of the rear yard, the irregular shape of the property, the large roadway easement off PVDN, and the narrowing of the lot towards the front or Saddleback Road, a Variance is warranted for the proposed Project.

C. That the granting of such variance will not be materially detrimental to the public welfare or injurious to properties or improvements in the vicinity.

The granting of the Variance would not be materially detrimental to the public welfare or injurious to the property or improvements in such vicinity and zone in which the property is located. The proposed pool house, garage and deck will be constructed on existing building pads, will be the least intrusive to surrounding properties, will be screened and landscaped with mature trees and shrubs, are of sufficient distance from nearby residences so that they will not impact the view or privacy of surrounding neighbors, and will permit the owners to enjoy their property without deleterious infringement on the rights of surrounding property owners.

D. That in granting the variance, the spirit and intent of this title will be observed.

The granting of the variances will allow for development that is harmonious in scale and mass with the site, the natural terrain, and surrounding residences and will not give the property an over-built look. The garage, pool house and deck will improve the

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Resolution No. 1403 7
appearance of the property by providing required parking in the front and accessory structures in the rear of the property to enhance its livability.

E. That the variance does not grant special privilege to the applicant.

The variance does not grant special privileges for the Applicant, as the proposed detached garage expansion will provide more covered parking opportunities, and will results in a common amenity enjoyed by many other properties throughout the City. Strict application of the Zoning Code would deny the Applicant the same rights as other nearby homes as the Applicant would have less parking and enhancements than the neighboring properties. The project, together with the variance, will be compatible with the objectives, policies, general land uses, and programs specified in the General Plan.

F. That the variance is consistent with the portions of the County of Los Angeles Hazardous Waste Management Plan relating to siting and siting criteria for hazardous waste facilities.

Granting variances for the project will be consistent with the applicable portions of the Los Angeles County Hazardous Waste Management Plan related to siting criteria for hazardous waste facilities. The project site is not listed on the current State of California Hazardous Waste and Substances Sites List.

G. That the variance request is consistent with the General Plan of the City of Rolling Hills.

Section 11. Based upon the foregoing findings, and the evidence in the record, the City Council hereby approves Zoning Case No. 25-101 subject to the following conditions:

A. The Site Plan, Conditional Use Permit, and Variance approvals shall expire within two years from the effective date of approval as defined in RHMC Sections 17.46.080,

17.42.070, and 17.38.070 of the Zoning Ordinance unless otherwise extended pursuant to the requirements of these sections.

B. If any condition of this resolution is violated, the entitlement granted by this resolution shall be suspended and the privileges granted hereunder shall lapse and upon receipt of written notice from the City, all construction work being performed on the subject property shall immediately cease, other than work determined by the City Manager or his/her designee required to cure the violation. The suspension and stop work order will be lifted once the Applicant cures the violation to the satisfaction of the City Manager or his/her designee. In the event that the Applicant disputes the City Manager or his/her designee’s determination that a violation exists or disputes how the violation must be cured, the Applicant may request a hearing before the City Council. The hearing shall be scheduled at the next regular meeting of the City Council for which the agenda has not yet been posted; the Applicant shall be provided written

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Resolution No. 1403 8
notice of the hearing. The stop work order shall remain in effect during the pendency of the hearing. The City Council shall make a determination as to whether a violation of this Resolution has occurred. If the Council determines that a violation has not occurred or has been cured by the time of the hearing, the Council will lift the suspension and the stop work order. If the Council determines that a violation has occurred and has not yet been cured, the Council shall provide the Applicant with a deadline to cure the violation; no construction work shall be performed on the property until and unless the violation is cured by the deadline, other than work designated by the Council to accomplish the cure. If the violation is not cured by the deadline, the Council may either extend the deadline at the Applicant’s request or schedule a hearing for the revocation of the entitlements granted by this Resolution pursuant to Chapter

17.58 of the Rolling Hills Municipal Code (RHMC).

C. All requirements of the Building and Construction Ordinance, the Zoning ordinance, and of the zone in which the subject property is located must be complied with unless otherwise a variance to such requirement has been approved.

D. The lot shall be developed and maintained in substantial conformance with the site plan on file at City Hall and approved by the City Council on February 9, 2026 except as otherwise provided in these conditions. The working drawings submitted to the Department of Building and Safety for plan check review shall conform to the approved development plan. All conditions of the Site Plan Review, Conditional Use Permit, and Variance approvals shall be incorporated into the building permit working drawings, and where applicable complied with prior to issuance of a grading or building permit from the building department.

The conditions of approval of this Resolution shall be printed onto a separate sheet and included in the building plans submitted to the Building Department for review and shall be kept on site at all times.

Any proposed modifications and/or changes to the approved project, including resulting from field conditions, shall be discussed with staff so that staff can determine whether the modification is minor or major in nature. Minor modifications are subject to approval by the City Manager or his or her designee. Major modifications are subject to approval by the Planning Commissioner after a public hearing. Applicant shall not implement modifications or changes to the approved project without the appropriate approval from the City Manager or designee or the Planning Commission, as required.

E. Prior to submittal of final working drawings to Building and Safety Department for issuance of building and grading permits, the plans for the project shall be submitted to City staff for verification that the final plans are in compliance with the plans approved by the Planning Commission.

F. A licensed professional preparing construction plans for this project for Building Department review shall execute a Certificate affirming that the plans conform in all respects to this Resolution approving this project and all of the conditions set forth herein and the City’s Building Code and Zoning Ordinance.

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Resolution No. 1403 9
Further, the person obtaining a building and/or grading permit for this project shall execute a Certificate of Construction stating that the project will be constructed according to this Resolution and any plans approved therewith.

G. The person obtaining a building and/ or grading permit for this project shall execute a Certificate of Construction stating that the project will be constructed according to this Resolution and any plans approved therewith.

H. Structural lot coverage of the lot shall not exceed 20% (7,485 square feet) of the net lot area. Flatwork lot coverage shall not exceed 14% (4,900 square feet). The total lot coverage proposed, including structures and flatwork, shall not exceed 34% (12,345 square feet) of the net lot area.

I. The project must be reviewed and approved by the Rolling Hills Community Association (“RHCA”).

J. The applicant shall comply with all requirements of the Lighting Ordinance of the City of Rolling Hills (RHMC 17.16.190(E)), pertaining to lighting on said property.

K. The disturbance of the net lot shall not exceed 18,574 square feet of surface area or 51% of the net lot area.

L. Prior to any further grading activity, the Applicant shall inform the City and RHCA staff of the date and time of this activity. Workers shall implement Best Management Practices to assure that streets and adjacent properties are not impacted.

M. Prior to issuance of a grading permit a detailed landscaping plan shall be submitted to City staff for review. The landscaping plan shall utilize to the maximum extent feasible, plants that are native to the area, are water-wise and are consistent with the rural character of the community. A final inspection shall not be granted unless the slopes are vegetated.

N. The graded areas shall be landscaped and continually maintained in good condition. Any trees and shrubs used in the landscaping scheme for this project shall be planted in a way that will not result in a hedge like screening and will not impair views from neighboring properties.

O. If applicable, the Applicant shall be required to conform to the City of Rolling Hills Water Efficient Landscape Ordinance (RHMC Chapter 13.18).

P. Pursuant to RHMC Chapter 8.30, the property shall at all times be maintained free of dead trees and vegetation.

Q. Perimeter easements, including roadway easements and trails, if any, shall remain free and clear of any improvements to advance equestrian use and emergency preparedness for evacuation within the City. Where Rolling Hills Community Association (RHCA) has demonstrated authority over the easement, the City’s Planning Director may grant relief from this condition upon satisfactory proof of permission from RHCA and a legitimate showing that there is no need for the condition to advance equestrian uses and emergency preparedness.

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Resolution No. 1403 10
R. The Applicant shall submit a detailed drainage plan to the City’s drainage engineer.

This project shall meet the requirements of the City’s Low Impact Development portion of the Storm Water Management and Pollution Control ordinance, if applicable. The applicant shall comply with grading requirements relative to submittal of grading and construction reports as required by the Building Official. In order to prevent sediments and water run-off from reaching the canyon from the disturbed slopes and an erosion control plan shall be submitted to the Building Department and implemented, even if grading permits have not been issued by that time.

S. The Applicant shall secure all permits from the Department of Building and Safety prior to commencing any work. If applicable, the applicable shall consult with the California Department of Fish and Wildlife for additional requirements.

T. Minimum of 65% of the construction material spoils shall be recycled and diverted from landfills. The hauler shall obtain a Construction and Demolition permit from the City and provide proof of recycling.

U. Prior to demolition of any existing structures, an investigation shall be conducted for the presence of hazardous chemicals, lead-based paints or products, mercury and asbestoscontaining materials (ACMs). If hazardous chemicals, lead-based paints or products, mercury or ACMs are identified, remediation shall be undertaken in compliance with California environmental regulations and policies.

V. There shall be no discarding of any debris, trash, soil and construction spoils or any other material into the canyon or deposited anywhere on the property, including easements.

No grading, planting, structures, drainage devices or hardscape, including driveways, or storage of any objects including building materials shall take place in the easements, unless approved by the RHCA.

W. The City or the Building Department may require a construction fence for the duration of the grading for this project. Such fence shall not be located in any easement or cross over trails or natural drainage course and shall be removed immediately upon completion of the grading work.

X. In addition, any construction facility, such as a construction trailer/office or portable toilets, to a maximum extent practicable, shall be located in a manner not visible from the street, and be in a location satisfactory to City staff.

Y. Prior to construction, an on-site inspection and site walk-through, including through all existing structures as needed, shall be scheduled with City Staff and the applicant.

Z. During construction, the property owners shall be required to schedule and regulate construction and related traffic noise throughout the day between the hours of 7 AM and 6 PM, Monday through Saturday only, when construction and mechanical equipment noise is permitted, so as not to interfere with the quiet residential environment of the City of Rolling Hills.

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Resolution No. 1403 11
AA. Construction vehicles or equipment, employees’ vehicles, delivery trucks shall not impede any traffic lanes to maximum extend practical; if traffic must be blocked in order to aid in the construction, no more than a single lane may be blocked for a short period of time and flagmen utilized on both sides of the impeded area to direct traffic.

AB. During construction, to the extent feasible, all parking shall take place on the project site, on the new driveway and, if necessary, any overflow parking may take place within the unimproved roadway easements along adjacent streets, and shall not obstruct neighboring driveways, visibility at intersections or pedestrian and equestrian passage. During construction, to the maximum extent feasible, employees of the contractor shall car-pool into the City. To the extent feasible, a minimum of 4’ wide path, from the edge of the roadway pavement, for pedestrian and equestrian passage shall be available and be clear of vehicles, construction materials and equipment at all times.

AC. During construction, the property owners shall be required to schedule and regulate construction and relate traffic noise throughout the day between the hours of 7 AM and 6 PM, Monday through Saturday only, when construction and mechanical equipment noise is permitted, so as not to interfere with the quiet residential environment of the City of Rolling Hills.

AD. During construction, dust control measures shall be used to stabilize the soil from wind erosion and reduce dust and objectionable odors generated by construction activities in accordance with South Coast Air Quality Management District, Los Angeles County and local ordinances and engineering practices.

AE. During construction, an Erosion Control Plan containing the elements set forth in Section 7010 of the 2022 County of Los Angeles Uniform Building Code shall be followed to minimize erosion and to protect slopes and channels to control storm water pollution.

AF. The property owners shall be required to conform to the Regional Water Quality Control Board and County Health Department requirements for the installation and maintenance of storm water drainage facilities and septic tank.

AG. The applicant shall pay all of the applicable Building and Safety and Public Works Department fees and Palos Verdes Peninsula Unified School District fees, if any.

AH. Prior to final inspection of the project, “as graded” and “as constructed” plans and certifications shall be provided to the Planning Department and the Building Department to ascertain that the completed project is in compliance with the Planning Commission approved plans. In addition, any modifications made to the project during construction, shall be depicted on the “as built/as graded” plan.

AI. The applicants shall execute an Affidavit of Acceptance of all conditions of the Conditional Use Permit and Variance approvals, or the approvals shall not be effective.

AJ. All conditions of this Resolution, when applicable, must be complied with prior to the issuance of a grading or building permit from the Building and Safety Department.

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Resolution No. 1403 12
AK. Any action challenging the final decision of the City made as a result of the public hearing on this application must be filed within the time limits set forth in Section 17.54.070 of the Rolling Hills Municipal Code and Code of Civil Procedure Section 1094.6.

AL. To the extent permitted by law, Permittee shall defend, indemnify and hold harmless the City of Rolling Hills, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside, or void any permit or approval for this project authorized by the City, including (without limitation) reimbursing the City its actual attorney’s fees and costs in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its choice. The permittee shall reimburse the City for any court and attorney's fees which the City may be required to pay as a result of any claim or action brought against the City because of this permit. Although the permittee is the real party in interest in an action, the City may, at its sole discretion, participate at its own expense in the defense of the action, but such participation shall not relieve the permittee of any obligation under this condition.

AM. The future stable and corral shall comply with all requirements in RHMC Sections

17.18.060 and 17.18.090, unless otherwise approved herein.

AN. New landscaping in the RHCA easement is prohibited unless previously approved by RHCA. Landscaping not approved by RHCA in the easement shall be removed from the final landscape plan.

PASSED, APPROVED, AND ADOPTED this 9th day of February, 2026 ______________________________

BEA DIERINGER
MAYOR
ATTEST:
___________________________

CHRISTIAN HORVATH

CITY CLERK

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Resolution No. 1403 13

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §§

CITY OF ROLLING HILLS )
The foregoing Resolution No. 1403 entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING

HILLS, CALIFORNIA GRANTING APPROVAL OF SITE PLAN REVIEW

FOR NEW CONSTRUCTION, NON-EXEMPT GRADING AND RELATED
IMPROVEMENTS; VARIANCES FOR A DETACHED GARAGE WITHIN

STRUCTURES, AND FINDING THE PROJECT EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (LOT 17-2-RH)
(BIRKETT)
was approved and adopted at a regular meeting of the City Council on the 9th day of February 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________

CHRISTIAN HORVATH

CITY CLERK

Page 37 of 328 ends

COVER

BIRKETT RESIDENCE
10 SADDLEBACK RD
ROLLING HILLS, CA 90274
APN : 7569-002-017
TRACT #: 28172
LOT: 1
L-2.1 1/16" = 1'-0" 03-05-2024 09-26-2025 PROPOSED SITE PLAN

BIRKETT RESIDENCE
10 SADDLEBACK RD,
ROLLING HILLS, CA 90274
DWG. NO. SCALE DATE REV. DATE DESCRIPTIONS
SCOPE OF WORK:

PROJECT INFORMATION :

OWNER

MAILING ADDRESS

PROJECT ADDRESS

PHONE NUMBER
: ELIZABETH AND STEPHEN BIRKETT
: 10 SADDLEBACK RD, ROLLING HILLS, CA 90274
:

LANDSCAPE ARCHITECT

MAILING ADDRESS

PHONE NUMBER
EMAIL
: RICHIE-BRAY, INC. LANDSCAPE ARCHITECTURE
: 904 SILVER SPUR ROAD #395, ROLLING HILLS ESTATES, CA 90274 : (310) 377-5868 OFFICE, (310) 995-8825 CELL
: [email protected]

VICINITY MAP
SCALE: NTS
L-0 N/A 09-06-2024 COVER SHEET

SITE AERIAL VIEW
SCALE: NTS

LIST OF BMPS (BEST MANAGEMENT PRACTICES)

1. CA1 DEWATERING OPERATIONS - REMOVE SEDIMENTS FROM GROUND WATER

2. CA2 PAVING OPERATIONS - REDUCE DISCHARGE OF POLLUTANTS FROM PAVING OPERATIONS

3. CA3 STRUCTURE CONSTRUCTION AND PAINTING - PREVENT & REDUCE DISCHARGE FROM CONSTRUCTION SITES &

PAINTING PROJECTS

4. CA10 MATERIAL DELIVERY AND STORAGE - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER FROM

MATERIAL DELIVERY & STORAGE

5. CA11 MATERIAL USE - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER FROM MATERIAL USE

6. CA12 SPILL PREVENTION AND CONTROL - PREVENT & REDUCE DISCHARGE OF POLLUTANT TO STORM WATER SYSTEMS

WITH GOOD HOUSEKEEPING

7. CA20 SOLID WASTE MANAGEMENT - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER SYSTEMS FROM

SOLID WASTE OR CONSTRUCTION

8. CA21 HAZARDOUS WASTE MANAGEMENT - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER FROM

TOXIC MATERIALS

9. CA22 CONTAMINATED SOIL MANAGEMENT - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER

CONTAMINATED SOIL

10. CA23 CONCRETE WASTE MANAGEMENT - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER FROM

CONCRETE WASTE

11. CA24 SANITARY/SEPTIC WASTE MANAGEMENT - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STROM WATER FROM

SANITARY & SEPTIC SYSTEMS

12. CA30 VEHICLE AND EQUIPMENT CLEANING - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER FROM

CLEANING OF VEHICLES AND EQUIPMENT

13. CA31 VEHICLE AND EQUIPMENT FUELING - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER FROM

FUELING OF VEHICLES & EQUIPMENT

14. CA32 VEHICLE AND EQUIPMENT MAINTENANCE - PREVENT & REDUCE DISCHARGE OF POLLUTANTS TO STORM WATER FROM

MAINTENANCE OF VEHICLES & EQUIPMENT

15. CA40 EMPLOYEE/SUBCONTRACTOR TRAINING -SWPPP STORM WATER POLLUTION PREVENTION PLAN

16. ESC1 SCHEDULING - SEQUENCING THE CONSTRUCTION PROJECT TO REDUCE THE AMOUNT OF SOIL EXPOSED TO EROSION

17. ESC2 PRESERVATION OF EXISTING VEGETATION - MINIMIZE DAMAGE AND EROSION BY PRESERVING THE EXISTING

VEGETATION

18. ESC10 SEEDING AND PLANTING - MINIMIZE EROSION WITH SEEDING AND PLANTING

19. ESC11 MULCHING - FOR STABILIZING CLEARED AND FRESHLY SEEDED AREAS

20. ESC20 GEOTEXTILES AND MATS - FOR STABILIZATION OF SOILS

21. ESC21 DUST CONTROLS - REDUCE DUST AND SOIL EROSION

22. ESC22 TEMPORARY STREAM CROSSING - RECOMMENDATIONS FOR INSTALLING A TEMPORARY CULVER, FORD OR BRIDGE

23. ESC23 CONSTRUCTION ROAD STABILIZATION - RECOMMENDATIONS FOR DUST AND EROSION CONTROL

24. ESC24 STABILIZED CONSTRUCTION ENTRANCE - RECOMMENDATIONS FOR DUST, SEDIMENT AND EROSION CONTROL FOR

PUBLIC STREETS

25. ESC30 EARTH DIKE - TEMPORARY BERM OR RIDGE OF COMPACTED SOIL

26. ESC31 TEMPORARY DRAINS AND SWALES - TO DIVERT OFF-SITE RUNOFF AROUND A CONSTRUCTION SITE

27. ESC32 SLOPE DRAIN - TEMPORARY PIPE TO DIVERT RUNOFF FROM THE TOP OF A SLOPE TO THE BOTTOM WITHOUT

CAUSING EROSION

28. ESC40 OUTLET PROTECTION - INSTALL RIP-RAP TO REDUCE SEDIMENT IN THE SOIL

29. ESC41 CHECK DAMS - REDUCES VELOCITY OF CONCENTRATED STORM WATER FLOWS AND REDUCES EROSION

30. ESC42 SLOPE ROUGHENING/TERRACING - CREATES MICROCLIMATES FOR ESTABLISHING VEGETATION

31. ESC50 FOR SEDIMENTATION CONTROL

32. ESC51 STRAW BALE BARRIERS - FOR SEDIMENTATION CONTROL

33. ESC52 SAND BAG BARRIER - FOR SEDIMENTATION CONTROL

34. ESC53 BRUSH OR ROCK FILTER - FOR SEDIMENTATION CONTROL AND VELOCITY REDUCTION

35. ESC54 STORM DRAIN INLET PROTECTION - DEVICES WHICH DETAIN SEDIMENT LADEN RUNOFF

36. ESC55 SEDIMENT TRAP - SMALL EXCAVATED OR BERMED AREA FOR SEDIMENTATION

37. ESC56 SEDIMENT BASIN - POND CREATED TO ALLOW EXCESSIVE SEDIMENT TO SETTLE

LANDSCAPE MAINTENANCE REQUIREMENTS SHALL BE AS
FOLLOWS :

1. AN AUTOMATIC SPRINKLER OR IRRIGATION

SYSTEM SHALL BE INSTALLED AND PERMANENTLY
MAINTAINED IN WORKING ORDER.

2. ALL LANDSCAPING SHALL BE PERMANENTLY
MAINTAINED.

3. LAWN AND GROUND COVERS SHALL BE MOWED
OR TRIMMED REGULARLY. ALL PLANTED AREAS
SHALL BE KEPT FREE OF WEEDS AND DEBRIS.

4. ALL PLANTINGS SHALL BE KEPT IN A HEALTHY
AND GROWING CONDITION. ADJUSTMENTS,

REPLACEMENTS, REPAIRS AND CLEANING SHALL BE
A PART OF THE REGULAR MAINTENANCE.

5. STAKES, GUYS AND TIES ON TREES SHALL BE
CHECKED REGULARLY FOR CORRECT FUNCTION.

TIES SHALL BE ADJUSTED TO AVOID CREATING
ABRASION OR GIRDING ON TRUNKS OR BRANCHES.

MAINTENANCE REQUIREMENTS

12. CONTRACTOR TO ASCERTAIN ALL REQUIRED

SWIMMING POOL FENCING TO BE MAINTAINED

DURING CONSTRUCTION OR THE POOL SHALL BE
EMPTIED.

8. PER LOCAL REQUIREMENTS, THE WORKING
HOURS ARE BETWEEN 7:00 AM TO 7:00 PM
MONDAY THROUGH THURSDAY; 7:00 AM TO
5:00 PM ON FRIDAY AND 9:00 AM
TO 5:00 PM ON SATURDAY WITH NO WORK ON
SUNDAYS OR HOLIDAYS. THE ABOVE LIMITS ARE

FOR REFERENCE ONLY AND CONTRACTOR ARE

RESPONSIBLE TO ASCERTAIN THE WORKING

HOUR LIMIT FROM RELEVANT CITY
REQUIREMENTS.

GENERAL NOTES :

1. ANY YARD DRAINAGE IMPROVEMENTS SHALL BE

INSPECTED AND CERTIFIED BY THE ENGINEER OF
RECORD PRIOR TO FINAL APPROVAL.

2. ANY DRAINAGE DIRECTED TO THE STREET

THROUGH PIPING SHALL BE DRAWN UP BY A

LICENSED CIVIL ENGINEER AND SUBMITTED TO

THE CITY ENGINEER FOR APPROVAL PRIOR TO

OBTAINING A PUBLIC WORKS PERMIT FOR CURB
CORING.

3. CONTRACTOR TO VERIFY LOCATIONS OF SMOKE

DETECTORS AND CARBON MONOXIDE ALARMS IN
NEW WORK PER SECTIONS R314 & R315 OF THE
CRC RESPECTIVELY.

4. ALL CONSTRUCTION WASTE AND DEBRIS MUST BE

CONTAINERIZED AT ALL TIMES & MUST BE ATHENS
DUMPSTERS ONLY (CALL 1-888-336-6100)

5. A RE-INSPECTION FEE MAY BE CHARGED BY THE

CITY FOR AN INSPECTION WHICH IS NOT

ACCESSIBLE, OR APPROVED PLANS ARE NOT ON

SITE, OR JOB IS NOT READY AND ALL COSTS SHALL

BE BORNE BY THE CONTRACTOR RESPONSIBLE FOR
THE SAID WORK.

6. ANY AND ALL DEVIATIONS FROM THE PLANNING

COMMISSION APPROVED PLANS REQUIRE THAT

REVISED PLANS BE SUBMITTED TO THE PLANNING
DEPARTMENT FOR REVIEW AND APPROVAL.

7. ALL GENERAL CONTRACTORS,

SUB-CONTRACTORS, ARCHITECTS & ENGINEERS

CONDUCTING BUSINESS WITHIN THE CITY ARE

REQUIRED TO MAINTAIN A CURRENT CITY

BUSINESS LICENSE AS DESCRIBED IN THE
MUNICIPAL CODE ORDINANCE NO. 092-559 AND
RESLOLUTION NO. R92-72.

NOTES :

1. ANY PLANTING OR HARDSCAPE ON CITY RIGHT OF

WAY WILL BE REQUIRED TO BE REVIEWED AND
APPROVED BY THE CITY.

2. ALL PLANTING THAT GROWS TO A HEIGHT THAT

BECOMES A VIEW OBSTRUCTION, WILL BE REQUIRED
TO BE TRIMMED.

3. VERIFY ALL DIMENSIONS ON SITE AND NOTIFY

LANDSCAPE ARCHITECT OF ANY DISCREPANCIES
PRIOR TO COMMENCEMENT OF WORKS.

4. WRITTEN DIMENSIONS TAKE PRECEDENCE OVER
SCALED DIMENSIONS.

5. LANDSCAPE ARCHITECT IS NOT RESPONSIBLE FOR
ANY MEANS OR METHODS OF CONSTRUCTION.

6. LANDSCAPE ARCHITECT IS NOT RESPONSIBLE FOR
PROPOSED OR EXISTING CONDITIONS.

7. ALL DIMENSIONS ARE TO FINISHED SURFACES.

8. SEE ENGINEER'S DRAWINGS FOR ALL DETAILS &

REQUIREMENTS OF CONCRETE, CMU WALLS, REBARS,
ETC.

9. ALL EXPOSED GALV. STEEL PARTS TO BE PAINTED W/
PRIMER & 2 COATS OF POLYURETHANE PAINT.

10. CONTRACTOR TO VERIFY ALL EQUIPMENT SIZES,
UTILITY REQUIREMENTS ETC. PRIOR TO
CONSTRUCTION.

11. CONTRACTOR TO SUBMIT ALL MATERIAL & COLOR

SAMPLES FOR APPROVAL PRIOR TO ANY WORK
COMMENCES.

12. SURVEY INFORMATION WERE OBTAINED FROM
OTHER'S RECORDS AND EXISTING SITE CONDITIONS.

CONTRACTOR TO VERIFY ALL CONDITIONS PRIOR
TO CONSTRUCTION.

13. PRIOR TO ANY DEMOLITION/GRADING WORK

COMMENCES, A PRE-DEMO/GRADING MEETING

SHALL BE ARRANGED WITH CITY BUILDING

OFFICIALS, GENERAL CONTRACTOR, OWNER OR

OWNER'S REPRESENTATIVE, SOIL ENGINEER,

LANDSCAPE ARCHITECT AND/OR GRADING
CONTRACTOR.

14. CONTRACTOR TO INSTALL ALL NECESSARY

EROSION CONTROL AND SEDIMENT RETENTION

PROVISIONS ACCORDING TO PLAN OR AS
NECESSARY.

15. DETACHED PATIO COVERS, CARPORTS, ARBORS,

OPEN LATTICE WORK & SUN SHADES MAY BE

CONSTRUCTED OF ANY MATERIALS ALLOWED BY
CODE.

13. SURVEY PREPARED BY OTHERS:

14. SHOULD EXISTING CONDITIONS DIFFER FROM THIS

LAYOUT, CONTRACTOR ARE TO INFORM

LANDSCAPE ARCHITECT FOR VERIFICATION PRIOR
TO WORK COMMENCES.

9. ALL WORKS SHALL CONFORM TO ALL RELEVANT

CURRENT CODES INCLUDING BUT NOT LIMITED
TO :
- 2022 CALIFORNIA BUILDING CODE
- 2022 CALIFORNIA RESIDENTIAL CODE
- 2022 CALIFORNIA PLUMBING CODE
- 2022 CALIFORNIA MECHANICAL CODE
- 2022 CALIFORNIA ELECTRICAL CODE
- THE CURRENT REQUIREMENTS OF THE
ENERGY
- COUNTY OF LOS ANGELES FIRE CODE

10. DUST CONTROL MEASURES SHALL BE

MAINTAINED THROUGHOUT THE DURATION
OF THE PROJECT.

11. SEPARATE PUBLIC WORKS PERMIT SHALL BE

REQUIRED FOR ANY APPROACH TO PRIVATE

DRIVEWAYS, SEWER LATERALS, CURBS, CURB

CORES, STEEET IMPROVEMENTS OR ANY WORK
IN THE PUBLIC RIGHT OF WAY OR PARKWAYS.
: 10 SADDLEBACK RD, ROLLING HILLS, CA 90274
NORTH
NORTH
L-4 1/8" = 1'-0" 03-05-2024 09-26-2025 HARDSCAPE PLAN - FRONT

PROJECT TITLE

SHEET TITLE
CHECKED:

DRAWN BY:

DATE:

REVISIONS
PROJECT NO.

SHEET N0.

XREF FILE:

SCALE:

E-mail: [email protected]
904 Silver Spur Road #395
Rolling Hills Estates, CA 90274
(310) 377-5868
Richie-Bray, Inc.

LANDSCAPE ARCHITECTURE
Zoning Case # 25-101
09-06-2024
N/A
L-0
01-26-2026

THE SCOPE OF WORK FOR THIS EXISTING SINGLE FAMILY
RESIDENCE INCLUDES THE FOLLOWING:

EXISTING RESIDENCE WITH UPDATED HARDSCAPE AND PLANTING
DEMOLITION:

FRONT
· DRIVEWAY
· PLANTER WALL
SIDE
· WALKWAYS
PROPOSED:

FRONT
· DRIVEWAY
· GARAGE & GATE HOUSE 786 SQ.FT. · WALK/STAIRS
SIDE
· TRASH YARD
· DG ACCESS TO CORRAL
REAR
· ENLARGE DECK
· BBQ
· POOL HOUSE 800 SQ.FT. · WALKS AND STAIRS
· BOULDER & PEBBLE STAIR AT GRADE
REAR PHASE 2
· CORRAL 550 SQ.FT. AND STABLE 450 SQ.FT.
04-28-2025
L-6 1/8" = 1'-0" 03-05-2024 09-26-2025 SECTION
LP-1 1/8" = 1'-0" 08-11-2025 09-26-2025 PLANTING - FRONT

GARAGE &

POOL HOUSE

SUBMITTAL
L-1.1 N/A 03-05-2024 08-14-2024 SITE IMAGES - REAR
L-1 N/A 03-05-2024 08-14-2024 SITE IMAGES - FRONT
L-5 1/8" = 1'-0" 03-05-2024 09-26-2025 HARDSCAPE PLAN - REAR A 1.1 1/4" = 1'-0" --- --- GARAGE
A 2.1 1/4" = 1'-0" --- --- POOL HOUSE AND ROOF PLAN
APPROVED:

RHCA APPROVED ON 06/05/2025
CITY APPROVED ON 06/20/2025
REAR
· NEW POOL PATIO
· SPA
· STAIRS
· PLANTERS
· FIRE PIT
REAR PHASE 2
· CORRAL 675 SF AND STABLE 450 SF

ARCHITECT

MAILING ADDRESS

PHONE NUMBER
EMAIL
: RUSSELL E. BARTO ARCHITECT
: 3628 VIA PALOMINO, PALOS VERDES ESTATES, CA 90274
: (310) 378-1355 OFFICE
: [email protected]
L-2 1/16" = 1'-0" 03-05-2024 04-28-2025 EXISTING SITE PLAN LP-2 1/8" = 1'-0" 08-11-2025 09-26-2025 PLANTING - REAR L-3.1 1/16" = 1'-0" 06-30-2025 09-26-2025 GRADING AND SLOPE ANALYSIS 06-24-2025
5 OF 12 3/16" = 1'-0" 01-31-2024 --- FLOOR PLAN - 1ST FLOOR 6 OF 12 3/16" = 1'-0" 01-31-2024 --- FLOOR PLAN - 2ND FLOOR 11 OF 12 3/16" = 1'-0" 01-31-2024 --- SECTIONS
12 OF 12 3/16" = 1'-0" 01-31-2024 --- EXTERIOR ELEVATIONS A-2.0 NOT TO SCALE 12-08-2024 --- NEW MAIN FLOOR PLAN
11-04-2025
11-17-2025
01-26-2026
NOTE:

LOT COVERAGE BREAKDOWN SEE
SHEET L-0.1
L-0.1 N/A 03-05-2024 01-26-2026 LOT COVERAGE BREAKDOWN
VICINITY PLAN SCALE: NTS

SADDLEBACK RD

Page 38 of 328 ends

PROPERTY LINE EASEMENT SETBACKS SETBACKS NET LOT AREA 36590 SQ.FT ATTACHED COVERED PORCHES ENTRYWAY / PORTE COCHERE PAVED WALKS, PATIO AREAS, COURTYARDS (E) COVERED PATIO (E) COVERED DECK (E) COVERED DECK DRIVEWAY PERVIOUS SURFACES POOL / SPA FRONT YARD SETBACK AREA SIDE YARD SETBACK AREA 12345678 WALK WALK WALK WALK WALK (N) WALK (E) POOL PATIO/DECKING WALK GHIDETACHED STRUCTURE (N) TRASH YARD (N) BBQ* (E) FIRE PIT* (E) POOL EQUIP (N) FOUNTAIN* (N) RAISED DECK* *MET CRITERIA FOR LOT COVERAGE DEDUCTION ABCDEF PROJECT TITLE SHEET TITLE CHECKED: DRAWN BY: DATE: REVISIONS PROJECT NO. SHEET N0. XREF FILE: SCALE: E-mail: [email protected] 904 Silver Spur Road #395 Rolling Hills Estates, CA 90274 (310) 377-5868 Richie-Bray, Inc. LANDSCAPE ARCHITECTURE Zoning Case # 25-101 LOT COVERAGE BREAKDOWNL-0.1 AS SHOWN 03-05-24 BIRKETT RESIDENCE 10 SADDLEBACK RD ROLLING HILLS, CA 90274 APN : 7569-002-017 TRACT #: 28172 LOT: 1 NORTH DRIVEWAY RESIDENCE (E) POOL FUTURE CORRAL 550 SF (E) POOL PATIO 1693.3 (N) WALK
(N) GARAGE 786 SF (E) SPA (N) RAISED DECK 777.491 (N) TRASH YARD 108.7 09-04-25 09-26-25 36'-6" 44'-5" NOTE: NEIGHBORING STRUCTURE/HOUSE OUTLINE ACQUIRED FROM LOS ANGELES COUNTY OFFICE OF THE ASSESSOR 12 SADDLEBACK RD ROLLING HILLS, CA 90274 ASSESSOR'S ID: 7569-002-018 6 SADDLEBACK RD ROLLING HILLS, CA 90274 ASSESSOR'S ID: 7569-003-001 16 SADDLEBACK RD ROLLING HILLS, CA 90274 ASSESSOR'S ID: 7569-002-008 50'-5 3/4" 35'-1 1/2" 29'-10" 101'-10 1/2" 101'-1 1/4" 77'-4 3/4" 67'-9 3/4" 85'-11"
128'-2 3/4"97'-8 1/2" 11-17-25 FUTURE STABLE 450 SF (N) POOL HOUSE LOT COVERAGE BREAKDOWN SCALE: 1" = 30' PAD #1 AND PAD #2 SCALE: 1" = 40' DISTURBED AREA SCALE: 1" = 40' 2 3 F 4 5 6 7 8 B C D E G H I LEGEND PAD #1/ BUILDABLE AREA NOT IN THE SETBACKS THAT HAS AN AVERAGE SLOPE OF TEN PERCENT (10%) OR LESS PAD #2/ BUILDABLE AREA NOT IN THE SETBACKS THAT HAS AN AVERAGE SLOPE OF TEN PERCENT (10%) OR LESS LEGEND 9098.4 SQ.FT. 6317.6 SQ.FT. (E) ROOF LINE EXISTING DISTURBED AREA 13602.41 SQ.FT PROPOSED DISTURBED AREA 4972.32 SQ.FT NET LOT AREA 36590 SQ.FT LEGEND EXISTING PROPOSED TOTAL SQ.FT. PERCENTAGE 13602.41 4972.32 18574.73 37% 14% 51% 01-26-26

Page 39 of 328 ends

480 485 490 495 500 13.3670° 480 485 490 495 500 475 490 495 500 505 510 480 485 490 495 500 475 PROJECT TITLE SHEET TITLE CHECKED: DRAWN BY: DATE: REVISIONS PROJECT NO. SHEET N0. XREF FILE: SCALE: E-mail: [email protected] 904 Silver Spur Road #395 Rolling Hills Estates, CA 90274 (310) 377-5868 Richie-Bray, Inc. LANDSCAPE ARCHITECTURE Zoning Case # 25-101 SECTIONS L-603-05-24 BIRKETT RESIDENCE 10 SADDLEBACK RD ROLLING HILLS, CA 90274 APN : 7569-002-017 TRACT #: 28172 LOT: 1 FS 484.28 TW 485.52 PA LAWN 1.6% TW 490.5 FS 492.7 (N) DECK 18"TW 488.28 (E) GRADE (E) POOL (E) GRADE (E) FENCE
(E) BLDG PA

PROPERTY LINE
(E) POOL
(N) POOL HOUSE SEE ARCHITECT'S PLAN (E) FENCE FS 484.28 FS 484.27 (E) POOL PATIO PLANTING AREA (E) GRADE PROPERTY LINE FRONT YARD SECTION SCALE: 1/8" = 1'- 0"
(E) BLDG
FS (497.21) FS 496.2 FS 498.7 FS 501.2
PROPERTY LINE FS 500.2 (E) GRADE (N) FRONT PORCH (N) DRIVEWAY 29"
24"
(N) 42"H GUARD RAIL BW 488.0 (N) GRADE ELEV = 491.25 (N) PLANTER WALL (E) SPA WATER FALL 2'-6" (E 18"H 36"DIA. FIRE PIT (N) 8'W DG DRIVE/ ATV ACCESS (N) PLANTER BEHIND WALL FG = 499.5 PLANTING AREA A.C. PAVEMENT (N) LOW WALL BORDERING PROPOSED DRIVEWAY(E) WALL SLOPED ALONG STAIRS IN THE BACKGROUND TW 485.52 (E) PLANTER 24% SLOPE (E) SPA(E) PLANTER BEHIND SPA TW 484.77 (E) 6"H WALL 05-15-25 06-24-25 (N) PLANTER WALL AS SHOWN (E) COVERED DECK 29" PROPOSED GRADE 01-07-25 07-21-25 (E) GRADE
(N) GATE HOUSE
(N) PLANTER WALL
(N) PLANTER WALL TW 493.0 (N) BBQ COUNTER ELEV=495.78 FG 492.7 FS 492.7 (E) RAILING (E) COVERED DECK (E) COVERED DECK (N) WOODEN STAIR TS=495.19 (N) HANDRAIL (N) DECK
(N) STAIR
29"
37" TW 492.16
3'-11"34.9% PLANTER
35" TW 491.0 (N) GRADE
(E) GRADE A REAR YARD SECTION SCALE: 1/8" = 1'- 0" B REAR YARD SECTION SCALE: 1/8" = 1'- 0" C REAR YARD SECTION SCALE: 1/8" = 1'- 0" D

Page 40 of 328 ends

E X I S T I N G O N E - S T O R Y B U I L D I N G D E C K (E) P O O L 36"T
36"T
36"T
12"T VF WF WF VFWF OHD WIRE VF 36"T 18"T 24"T 24"T 24"T 30"T
20"T
36"T
6"T
10"T
10"T
5"T
8"T
20"T
20"T
14"T
24"T
36"T
20"T
30"T
24"T
24"T
16"T
14"T
20"T
20"T
SADDLE BACK ROAD WF PL PL PL PL PL FH MBX 4"T 8"T 8"T 16"T 18"T ROW
ROW
ROW
EP EP EP P A L O S V E R D E S D R I V E N O R T H Δ=28°12'16" L=73.84' R=150.00' N48°41'11"E 186.11' N42°53'10"W 150.00' 102.04' N14°13'20"E 300.00' N49°33'40"W 283.13' N20°28'55"E 10'-0" 10'-0" MATCH LINE MATCH LINE 2 4 DFS
487
488
486
489
(491)
(492)
(493)
(494)
(501)
(496)
(497)
(498)
(499)
(502) (503) (504)
(496)
PROJECT TITLE SHEET TITLE CHECKED: DRAWN BY: DATE: REVISIONS PROJECT NO. SHEET N0. XREF FILE: SCALE: E-mail: [email protected] 904 Silver Spur Road #395
Rolling Hills Estates, CA 90274
(310) 377-5868
Richie-Bray, Inc. LANDSCAPE ARCHITECTURE EXISTING SITE PLANL-2 1/16" = 1'-0" 03-05-24 BIRKETT RESIDENCE 10 SADDLEBACK RD ROLLING HILLS, CA 90274 APN : 7569-002-017 TRACT #: 28172 LOT: 1 NORTH 0' 10' 20' 30' TREE KEY (E) TREE TO BE REMOVED (E) TREE TO REMAIN (N) POOL EQUIP. (E) (E) DRIVEWAY FUTURE CORRAL 675 SF FUTURE STABLE 450 SF (E) WOOD FENCE (E) WOOD FENCE
(E) WOOD FENCE
(E) FENCE (E) WOOD FENCE(E) SEEPAGE PIT(E) SEPTIC TANK ACCESS 08-14-24 (N) SPA (N) STAIRS W/ HANDRAIL 50'-0" BLDG. SETBACK
50'-0" BLDG. SETBACK10'-0" EASEMENT
10'-0" EASEMENT
10'-0" PUBLIC UTILITY EASEMENT
25'-0"
10'-0"
10'-0"
30'-0" BLDG. SETBACK
25'-0" ROADWAY 01-17-25 5'-0" EASEMENT 03-28-25 (N) PLANTER (N) POOL PATIO 04-28-25 (E) FENCE/GATE (E) DECK (E) WALK (E) WALK
(E) DRIVEWAY
(E) DRIVEWAY APPROACH (E) COVERED PORCH

Page 41 of 328 ends

E X I S T I N G O N E - S T O R Y B U I L D I N G D E C K (E) P O O L 36"T
36"T
36"T
12"T C O N C
VF
WF
WF
WF
VF
WF

OHD WIRE
VF
36"T
18"T
24"T
24"T
24"T
30"T
20"T
36"T
6"T
10"T
10"T
8"T
20"T
20"T
14"T
24"T
36"T
20"T
30"T
24"T
24"T
16"T
14"T
20"T
20"T

B R I C K
SADDLE
BACK
ROAD
WF
PL
PL
PL
PL
PL
FH
MBX
4"T
8"T
8"T
16"T
18"T
ROW
ROW
ROW
EP
EP
EP

P A L O S

V E R D E S D R I V E N O R T H
Δ=28°12'16"
L=73.84'
R=150.00'
N48°41'11"E
186.11'
N42°53'10"W
150.00'
102.04'
N14°13'20"E
300.00'
N49°33'40"W
283.13'
N20°28'55"E
10'-0"
10'-0" MATCH LINE 2 4
DFS
487
488
486
489
(491)
(492)
(493)
(494)
500
501
502
503
504
503
(501)
(496)
(497)
(498)
(499)
(502)
(503)
(504) (504)
502
(502)
(501)
(499)
(498)
(497)
(497)
(498)
(496)
504
499
496
498
497
494
493
492
491
490
489
488
486
487
(501)
(488)
(487)
(488)
(488)
(488)
495 MATCH LINE PROJECT TITLE SHEET TITLE CHECKED: DRAWN BY: DATE: REVISIONS PROJECT NO. SHEET N0. XREF FILE: SCALE: E-mail: [email protected] 904 Silver Spur Road #395
Rolling Hills Estates, CA 90274
(310) 377-5868
Richie-Bray, Inc. LANDSCAPE ARCHITECTURE Zoning Case # 25-101 PROPOSED SITE PLAN L-2.1 1/16" = 1'-0" 03-05-24 BIRKETT RESIDENCE 10 SADDLEBACK RD ROLLING HILLS, CA 90274 APN : 7569-002-017 TRACT #: 28172 LOT: 1 NORTH 0' 10' 20' 30' TREE KEY (E) TREE TO BE REMOVED (E) TREE TO REMAIN (N) POOL HOUSE SEE ARCH PLAN A 2.1 (E) POOL EQUIP.
(E) POOL PATIO
(N) LAWN
(N) PATIO
(E) ENLARGED DECK
(N) ENTRY PATIO (E) APRON(N) DRIVEWAY DEMO (E) CONC DRIVE (N) COLUMNS REMOVE (E) PATIO FUTURE CORRAL 550 SF
FUTURE
STABLE 450 SF
(E) WOOD FENCE
(E) WOOD FENCE
(E) WOOD FENCE
(E) WOOD FENCE

DEMO (E) FENCE
(N) WATER FEATURE TBD (E) SEEPAGE PIT (E) SEPTIC TANK ACCESS FILTER ON SITE (N) GARAGE SEE ARCH PLAN A 1.1 (E) DECK DEMO (E) PLANTER 08-14-24 (E) SPA 21'-5" 14'-4" (E) STAIRS W/ HANDRAIL ON BOTH SIDE OF THE PLANTER 17'-6"
20'-3 3/4" PROPOSED GRADE (N) WALK/STAIR TO FRONT ENTRANCE 50'-0" BLDG. SETBACK
50'-0" BLDG. SETBACK
10'-0" EASEMENT
10'-0" EASEMENT
10'-0" PUBLIC UTILITY

EASEMENT
25'-0" 10'-0"
10'-0"
30'-0" BLDG. SETBACK
25'-0" ROADWAY
(N) TRASH AREA 7'-0"
13'-0"
(N) 8'W DG ACCESS
(N) BBQ AREA REMOVE WALK (N) WALK (N) GATES AT ATV ACCESS AND WALK (N) DECORATIVE STONE WALL (N) 36"W DG ACCESS 01-17-25
5'-0" EASEMENT 03-28-25 06-02-25 06-24-25 (N) BOULDER WALLS 39'-3 1/4"
39'-3 1/4"
48'-9 3/4"
10'-0"
16'-8"
26'-2"
20'-0"
31'-6 3/4"
27'-8 3/4"
(N) COVERED WALK
(N) DRY-STACK STONE WALL
(N) WALL
(N) STAIRS (N) DECK AND STAIRS
(N) PA
(N) PA
(N) PA(N) PA(N) PA (E) PA (E) PA
(N) PA
(N) PA(N) PA
(N) PA 8'-0" MAILBOX (N) GATE/FENCE (N) DG WALK

Page 42 of 328 ends

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-,
.
; -��,...,.,.�_,,.,.,......--"�"'�'"' -m,�"'""''"'•"'
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I I
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1/4''=1'-0
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·--- ----·----------------------------=------------------------------,!'-

FLO-OR PLAN
1/4"=1'-0"
I
I
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Page 43 of 328 ends

Page 44 of 328 ends

AFFIDAVIT OF POSTING

PUBLIC HEARING AND FIELD TRIP NOTICE

CITY COUNCIL OF THE

CITY OF ROLLING HILLS, CALIFORNIA
I, Christian Horvath, the City Clerk for the City of Rolling Hills, CA, hereby state under penalty of perjury that I posted the attached notice on February 2, 2026 at the following locations:

1. Rolling Hills City Hall – 2 Portuguese Bend Road, Rolling Hills, CA 90274;

2. Rolling Hills Community Association – 1 Portuguese Bend Road, Rolling Hills, CA 90274;

3. Portuguese Bend Road Guard Gate – 1 Portuguese Bend Road, Rolling Hills, CA 90274 ______________________
Christian Horvath
City of Rolling Hills City Clerk

Page 45 of 328 ends

City of Rolling Hills INCORPORATED JANUARY 24, 1957
2 PORTUGUESE BEND ROAD
ROLLING HILLS, CA 90274
(310) 377-1521

NOTICE OF PUBLIC HEARING

CITY COUNCIL OF THE

CITY OF ROLLING HILLS, CALIFORNIA
NOTICE IS HEREBY GIVEN, that the City Council of the City of Rolling Hills will conduct a public hearing field trip visit starting at 7:30 AM on Monday, February 9, 2026, at the following property for the purpose of receiving public input regarding the following:

FIELD TRIP 7:30 AM
10 SADDLEBACK ROAD, ROLLING HILLS, CA 90274 (LOT 17-2-RH) ZONING CASE NO. 25-101: SITE PLAN REVIEW FOR NEW CONSTRUCTION, NONEXEMPT GRADING AND RELATED IMPROVEMENTS; VARIANCES FOR A

DETACHED GARAGE WITHIN FRONT AND SIDE YARD AREA, DETACHED POOL HOUSE WITHIN REAR YARD AREA, IMPORT OF SOIL, AND TO EXCEED 40 PERCENT DISTURBANCE; CONDITIONAL USE PERMIT TO EXCEED 200 SQUARE FEET FOR

ACCESSORY STRUCTURES, AND FINDING THE PROJECT EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (BIRKETT)
The project has been determined to be categorically exempt (Class 3) pursuant to the California Environmental Quality Act (CEQA) Guidelines, Section 15303.

The purpose of this field trip is to hold a public hearing on the site of the project to familiarize members of the City Council and interested parties with the location, topography, size, and scope of the project.

Following the field trip, the City Council will reconvene to discuss the project at a public hearing to be held on Monday, February 9, 2026, beginning at 7:00 PM in the Council Chambers of City Hall, located at 2 Portuguese Bend Road, Rolling Hills CA 90274.

Members of the public are invited to provide comments in-person during the morning field trip and/or the evening public hearing. Remote comments will not be accepted during the field trip or the evening hearing. Members of the public may also submit written public comments by sending an email to [email protected] no later than 3:00 PM the day of the meeting. Indicate which project you are commenting on. Your comments will become part of the official meeting record. You may provide your full name, but please do not provide any other personal information (i.e. phone numbers, addresses, etc.) that you do not want to be published.

A live audio of the City Council’s evening meeting will be available on the City’s website (http://www.rolling-hills.org/). The meeting agenda is on the City’s website (https://www.rollinghills.org/government/agenda/index.php) and is physically posted in at least three public locations.

If you challenge the approval or denial of the above project in court, you may be limited to raising only those issues you or someone else raised at the public hearings, or to issues addressed in written correspondence delivered to the City at or prior to the public hearings described in this notice.

For additional information, contact the Planning Department at (310) 377-1521.

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Item: 12.A.

Meeting Date: 2/9/2026
To: City Council
From: Robert Samario, Finance Operations Lead Consultant Thru: Karina Bañales, City Manager
Subject: Receive and file the Fiscal Year 2025-26 Mid-Year Report Background:

At mid-year, City finance staff prepare a report on the status of revenues and expenditures versus budgeted amounts. The purpose of the report and related analysis is to evaluate the progress of expenditures throughout the year to identify any unusual trends that may require action to mitigate or address the fiscal impacts.

Most of the focus is on the General Fund, the City's primary and largest operating fund. However, this report also includes most of the restricted funds and the Refuse Fund.

With six months of activity now in place, the mid-year report is important since it is the first real opportunity to determine how the City's revenues and expenditures are performing relative to their respective budgeted amounts.

The mid-year report is also important as it provides useful information as the City begins to develop the budget for the next fiscal year.

Discussion:

Please refer to Attachment A for a detailed written analysis of the status of revenues and expenditures for the General Fund and restricted funds. Attachments B through E present the financial status of all funds through mid-year. Attachment F provides a summary of budget amendments from July 1, 2025, through December 31, 2025.

Fiscal Impact:

None
Recommendation:

Receive and file the Fiscal Year 2025-26 Mid-Year Report Attachments:

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1. Attachment A - CL_AGN_260209_CC_GFNarrative

2. Attachment B - CL_AGN_260209_CC_GFSummary

3. Attachment C - CL_AGN_260209_CC_GFRevenues

4. Attachment D - CL_AGN_260209_CC_GFExpenditures

5. Attachment E - CL_AGN_260209_CC_RestrictedFunds

6. CL_AGN_260209_CC_FY25-26_MidYear_PowerPoint

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Attachment A

CITY OF ROLLING HILLS
Fiscal Year 2024/25
Six Months Ended December 31, 2025

OVERVIEW
The analysis in this report provides a comparison of actual revenues and expenditures to the amended budget through the six months ended December 31, 2025. Although there are still another six months left in the fiscal year and the current trends can change, it is still a valuable exercise to evaluate where the City’s finances stand half way through the fiscal year to identify any unexpected trends, both favorable and unfavorable, that may affect the year-end results and, thus, the expectations reflected in the amended budget.

The largest and most important fund is the General Fund, which is where the City of Rolling Hills’ primary and ongoing services provided to the community are accounted for, including public safety, building/planning, emergency preparedness, and city administration.

The City also has a number of other funds that account for important activities, programs, and services. Most of these funds account for monies that are restricted to a specific purpose and, therefore, are required to be accounted for separately. The City also accounts for large capital projects separately, including projects funded from federal and state grants. Lastly, the City provides refuse collection and disposal services by contract. This operation is accounted for in an enterprise fund. Each of the City’s funds are discussed below in the context of the mid-year review.

GENERAL FUND
General Fund Revenues
A summary of General Fund revenues is provided in the table below, which shows that the adopted fiscal year 2025-26 revenues total $2,679,259. Staff has added a column for the “Seasonal/Pro-Rated” budget through December 31, 2025, which for most revenues represents 50% (6 out of 12 months) of the annual budget to enable a more meaningful evaluation of revenues realized through half of the fiscal year. The two exceptions to using 50% of the budget for comparison purposes are property taxes and motor vehicle license (VLF) fees. These revenues do not come in evenly throughout the year. For property taxes, over the last five fiscal years, revenues through mid-year averaged 44.3% of the annual total realized by fiscal year-end. As such, the annual budget has been “seasonally adjusted” by using 44.3% of the adopted budget to compare to actuals through December 31, 2025. For VLF fees, 100% of the revenues are collected in January of each year, so the seasonally adjusted budget at December 31, 2025 is set to $0.

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2 As shown in the table below, revenues through December 31, 2025, from all sources totaled $1,342,197 resulting in a favorable variance of $233,285. Note that almost half of this favorable variance is due to an unbudgeted payment from the Rolling Hills Community Association (RHCA) representing a partial contribution towards the Tennis Court ADA Improvements of which the RHCA agreed to pay half of the costs. This is further discussed below in the analysis of Miscellaneous Revenues.

An analysis of each key revenue is provided below.

Property Taxes. At mid-year, property tax revenues totaled $696,684. This is $31,522 above the seasonally adjusted budget of $665,162. Note that the adopted budget reflects only a 1.3% growth from fiscal year 2024/25 final revenues, as shown in the table to the left. Thus, while it is generally difficult to predict final revenues, staff does anticipate the actual growth in property tax revenues at fiscal year-end will exceed the budgeted 1.3% growth.

Seasonal/ Actuals Variance
Adopted Pro-Rated Thru Favorable
Budget Budget 12/31/25 (Unfav)
401 Property Taxes $ 1,501,494 665,162 $ 696,684 $ 31,522 405 Sales Taxes 15,000 7,500 3,779 (3,721)
410 Property Transfer Tax 62,400 31,200 16,506 (14,694) 420 Motor Vehicle In Lieu 290,265 - - -
440 Building & Other Permits 450,000 225,000 334,888 109,888 441 C&D Permits 10,000 5,000 3,300 (1,700)
450 Variance, Planning & Zoning 30,000 15,000 10,850 (4,150) 455 Animal Control Fees 300 150 115 (35)
460 Franchise Fees 13,000 6,500 3,465 (3,035)
480 Fines & Traffic Violations 4,000 2,000 2,713 713
482 Cost Recoivery - Publications 3,000 1,500 1,500 -
600 RHCA Lease Revenue 69,000 34,500 28,746 (5,754)
650 Public Safety Aug Fund 1,800 900 518 (382)
670 Interest on Investments 160,000 80,000 76,927 (3,073) 671 PARS Earnings 44,000 22,000 33,879 11,879
675 Miscellaneous Revenue 1,000 500 116,327 115,827
699 Transfers In - Refuse Fund 24,000 12,000 12,000 -
TOTALS $ 2,679,259 $ 1,108,912 $ 1,342,197 $ 233,285

CITY OF ROLLING HILLS
Fiscal Year 2025-26 Mid-Year Review
General Fund Revenues Through 12/31/2025

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3 At a more macro level, however, the 3.3% growth last fiscal year was an historic low when excluding the impacts on revenues during COVID-19. As staff has discussed with Council over the last year, the landslide in the Palos Verdes
Peninsula last year, which caused major
shutdown in utilities and damages to public and
private properties, has likely impacted home
sales. This is likely the cause for the below
average growth this past year. Moreover, the
effects of the land movement along the
peninsula are likely to continue through at least
the current fiscal year. As such, staff does not
believe the actual growth for fiscal year 2025-
26 will exceed 3.5% as we saw last fiscal year
and may also be muted in fiscal year 2026-27.

Please refer to the discussion below for Real
Property Transfer Tax for further discussion of the impacts the land movement has had.

Real Property Transfer Tax (RPTT). RPTT, also referred as a documentary tax, is assessed when a property is sold. The tax is $1.10 per thousand dollars in sales value. Revenues collected by County are shared 50-50 with the city where the
property is located so that cities effectively
receive $0.55 per thousand dollars of sales value.

Revenues are driven, first, by the number of
properties sold and, second, the sales price.

The accompanying table presents a five-year
history of RPTT revenues for the City of Rolling
Hills starting with fiscal year 2021. After a spike
in fiscal year 2021 during which RPTT reached
almost $133,000, revenues declined over a twoyear period to $49,160 in fiscal year 2023. Revenues increased to $63,040 in fiscal year 2024, which was the basis for the estimate used in the fiscal year 2026 adopted revenue budget, but fell back to $43,833 last fiscal year.

At mid-year, revenues are only $16,506 compared to a budget of $62,400. Note the adopted revenue budget was largely tied to the fiscal year 2023-24 results when revenues reached $63,040. As noted above in the discussion of property taxes, the decline in RPTT is likely due the result of fewer home sales caused by the land movement last fiscal year. The weak results through mid-year are troubling as RPTT revenues serves as a leading indicator of the growth in property taxes in the following year. As such, the City may see a very moderated growth next fiscal year in property taxes.

Fiscal Total
Year Revenues
2021 $ 132,888 Actual
2022 80,719 Actual
2023 49,160 Actual
2024 63,040 Actual
2025 43,833 Actual
2026 62,400 Budget
Real Property Transfer Taxes

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4 Building and Other Permits. Revenues from this category are the General Fund’s second-largest revenue, with budgeted revenues of $450,000. The revenues are generated through two independent contractors providing building and planning services, one with the Los Angeles County Public Works Department
(LACPWD) and the other with a
private engineering and consulting
firm, The Willdan Group.

Last year we saw a dramatic shift in
both the revenues generated by
LACPWD and the fees charged to the
City of Rolling Hills. As shown in the table to the right, in fiscal year 2025 revenues declined by approximately $150,000 from fiscal year 2024, while the County’s fees charged the City increased by over $100,000. This unprecedented dynamic is still being investigated and has not been resolved. Some of this may be the result of the action taken in October 2024 by the County of Los Angeles Board of Supervisors, which waived fire department inspection fees, and the City Council’s subsequent decision to waive permit fees for projects on properties affected by land movement. These fees were not thought initially to be significant, but this will become clearer once the investigation is complete.

In the current fiscal year through December 31, 2025, revenues generated by LACPWD and their fees seem to have normalized (refer to the preceding table). Note that the current year revenues and expenses only reflect four months of activity. Interestingly, revenues generated through Willdan totaled $191,219 through December 31, 2025, exceeding the total they generated in all of last fiscal year. Together, building revenues to reached $334,888 at mid-year, well above expectations. If this trend continues, total revenues could well exceed the overall budget of $450.000.

Interest on Investments. Investment earnings through mid-year totaled $76,927 versus the prorated budget of $80,000. Although more volatile, investment returns in the City’s Section 115 Pension Trust of $33,879 are tracking ahead of the pro-rated budget of $22,000 through midyear.

Miscellaneous Revenues. This accounts for small and/or one-time revenues that may be received by the City of Rolling Hills during the fiscal year. The total annual budget is just $1,000 and typically in line with the level of income derived annually. However, the City of Rolling Hills and the Rolling Hills Community Association (RHCA) entered into an agreement whereby the RHCA would cover half of the cost to complete the ADA improvements to the City’s tennis courts that is being managed by the City. The City sent its first invoice to RHCA in the first half of the current fiscal year totaling approximately $115,000. Additional invoices will be sent to RHCA in the next few months as the project nears completion. These reimbursements were unbudgeted. As such, staff will eventually bring to the City Council a proposed budget amendment to reflect the estimated revenues to be collected from RHCA as their contribution to the project.

Fiscal City County
Year Revenues Fees Net
2022 $ 241,947 $ 206,177 $ 35,770
2023 198,166 156,678 41,488
2024 398,898 347,115 51,783
2025 242,422 450,911 (208,489)
2026 (Mid-Year) 143,668 107,280 36,389 Page 52 of 328
5 General Fund Expenditures
The originally adopted budget for fiscal year 2025-26 totaled $2,620,019. Since there were n appropriation carryovers and budget amendments approved between July 1 and December 31, 2025 to the operating budget, the amended budget also totals $2,620,019.

Excluding capital transfers, operating expenditures through December 31, 2025, totaled $1,266,640, resulting in a modest favorable variance of $43,369.

A discussion of the key variances at the department level is provided below. • City Administrator/Manager Department
The $52,556 unfavorable variance was essentially the result of two accounts. The first are the payments totaling $54,086 made to CalPERS towards the City’s unfunded pension liability.

The payments are not budgeted since we plan on having it paid for from a drawdown on the City’s Section 115 Trust. The second account is tied to legal costs from its contracted attorney related to CPUC matters and matters associated with the recent land movements in the peninsula. Through December 31, 2025, these costs have totaled $35,074 and were also not budgeted.
• Finance Department
Adopted Amended Prop-Rate Actuals
Department Budget Budget Budget at 12/31/25 Variance
City Administrator $ 875,874 $ 875,874 $ 437,937 $ 490,493 $ (52,556) Finance 160,000 160,000 80,000 44,994 35,006
Planning & Development 894,681 894,681 447,341 429,118 18,222 Public Safety 339,324 339,324 169,662 138,021 31,641
Non-Departmental 149,600 149,600 74,800 62,320 12,480
City Properties 200,540 200,540 100,270 101,694 (1,424) Total Operations $ 2,620,019 $ 2,620,019 $ 1,310,009 $ 1,266,640 $ 43,369

CITY OF ROLLING HILLS
General Fund Expenditures by Department
Through December 31, 2025

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6 The Finance Department Budget totals $160,000, consisting of three accounts: Dues and Subscriptions ($4,500), Annual Audit ($35,000), and Consulting Fees (120,500). All three accounts ended the year with combined savings totaling $35,006. About half of the savings is attributable to Consulting Fees where the costs for contracted finance staff are charged.

Contracted staff have made a concerted effort to keep costs down, which was possible given the progress made over the last few years in streamline operations and refining the accounting processes. The balance of the savings is the result of the audit, for which no invoices have been received as of December 31, 2025.
• Planning Department
Overall, expenditures are fairly in line with expectations, with a modest favorable variance of $49,264 through the first half of the fiscal year. A discussion of the more significant variances is provided below.
• 01-15-705 Temporary Salaries – The City hired contracted planning staff to backfill the vacant Planning Director/Planning Manager position, which cost $101,214 through December 31, 2025. Even though these costs were not budgeted, these costs were effectively funded from savings in all other payroll accounts stemming from the unfilled positions.
• 01-15-878 Building Services – LA County – The $17,720 favorable variance is due to the fact that only four months of invoices have been received as of December 31, 2025.

Given that the corresponding revenues are tracking ahead of the budget, we expect the expense side will also exceed the budgeted amount but still result in net gain to the City. • 01-15-881 Storm Water Management – This account is over budget by $16,756 at midyear. However, this is largely due to the full payment of $36,706 to the City of Rancho Palos Verdes for the City of Rolling Hills share of FY 2025-26 Coordinated Integrated Monitoring Program. Not only does this front-loaded cost skew the comparison to the adjusted budget set at 50% of the amended budget, it is also possible that some of these costs, as well as other costs charged to this account, will be allocated to the Measure W Fund at fiscal year-end.
• 01-15-886 Code Enforcement – This account totaling $62,880 has realized $11,970 in costs through mid-year. This is due to the City’s decision to bring code enforcement inhouse. Thus, all costs for code enforcement going forward will be included in the permanent salary and benefit accounts.
• Public Safety
The Public Safety Department budget is largely allocated to the contracted public safety services provided by the Los Angeles County Sheriff’s Department. The savings of $26,702 in this account is due entirely to the fact that only five invoices have been received and paid through December 31, 2025.

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7 • Non-Departmental
The “Non-Departmental” department accounts for costs that do not fit into a traditional department and generally are of a Citywide nature. As shown below, there are two accounts that have large variances. The first is 895- Insurance & Bond Expense. The unfavorable variance of $17,787 is simply a timing variance due to the fact that premiums are paid in July of each year. By fiscal year-end, it appears there will be a small savings in this account. Recall that we increased the budget for insurance based on notification from the California Joint Powers Insurance Authority, from whom the City secures its insurance coverage. In contrast, costs related to emergency preparedness are trending below budget. This is consistent with the prior year; however, the budget was kept the same since these costs can vary from year to year.

RESTRICTED FUNDS
Transit/Transportation Funds
The City of Rolling Hills receives an allocation each month from the County pursuant to several special sales tax measures approved by Los Angeles County voters over the last several decades that are restricted to transit and transportation programs and projects. The measures include Proposition A, Proposition C, Measure R, and Measure M. Since the City of Rolling Hills does not own and operate a transit system and, in fact, has no transit service provided within the City limits; nor does the City own and maintain any public roads, the funds received pursuant to the four tax measures are either gifted to other agencies or exchanged for unrestricted monies with other agencies who can utilize the funds in accordance with restrictions applicable to the revenues.

Revenues received within these transit/transportation funds through December 31, 2025, are once again tracking below budgeted expectations as we saw in the last two fiscal years. Revenues last year ended the fiscal year between 5-10% and the adopted budget was only slightly reduced

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8 based on the assumption the decline last fiscal year was anomaly. At this point, it appears these lower revenues may be the new normal.

Citizens Option for Public Safety (COPS) Fund
The City also maintains a COPs Fund for monies received from the County’s Supplemental Law Enforcement Services Fund created in 2009 through an increase to statewide to vehicle license fees. The revenues can only be used for supplemental law enforcement services.

Total revenues through December 31 are $185,723 versus the pro-rated budget of $86,000.

Revenues are normally received in their entirety by mid-year. However, allocated costs for supplemental law enforcement services were only $59,706 at mid-year primarily due to delayed billings from LA County.

Measure W Fund
The City of Rolling Hills receives an allocation of the countywide special parcel tax pursuant to Measure W (The Safe, Clean Water Act) for parcels located within the Los Angeles County Flood Control District. These revenues are intended for storm water recycling and water quality improvement projects and programs. The City receives a single payment each year for the full annual allocation. In December 2025, the City received $104,439, which is very close to the $106,000 total budget.

ENTERPRISE FUND
Refuse Fund
The Refuse Fund is the City’s only enterprise fund. Enterprise funds are typically used to account for utilities owned and operated by governments, such as water, wastewater, electricity, and refuse, and other operations that are similar to those provided by the private sector, such as airports and golf courses.

The Refuse Fund accounts for the contracted waste collection and disposal for all City of Rolling Hills residents. The fees charged to City residents are processed as a “Direct Assessment” through the County Assessor’s Office, which means the annual assessment is added to the property tax bill sent to property owners by the County, which is payable in two installments. Thus, the payments the City receives from the County for refuse services coincide with the payments the City receive for regular property taxes.

Through mid-year, half of the costs have been incurred. Revenues, budgeted at $1,055,603, are intended to cover the refuse contract and $24,000 paid to the General Fund for administrative support. Through mid-year, revenues are $448,522, about $79,000 below the pro-rated budget.

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9 However, since revenues in the second half of the year are typically higher than the first half, revenues should be in line with budget by fiscal year end.

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ATTACHMENT B
Seasonal/ Variance
Adopted Amended Prop-Rated Actuals at Favorable
Budget Budget Budget 12/31/2025 Unfavorable
Operating Revenues $ 2,679,259 $ 2,679,259 $ 1,108,912 $ 1,342,197 $ 233,285 Operating Expenditures 2,620,019 2,620,019 1,310,009 1,266,640 43,369 Operating Surplus (Deficit) 59,240 59,240 (201,098) 75,556 276,654 Capital Transfers - (1,180,515) 590,258 - (590,258)
Surplus (Deficit) - Total $ 59,240 $ (1,121,275) $ 389,160 $ 75,556 $ (313,603)

CITY OF ROLLINGS HILLS
Fiscal Year 2025-26 Budget Summary
General Fund

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ATTACHMENT C
Seasonal/ Actuals Variance
Adopted Pro-Rated Thru Favorable
Budget Budget 12/31/25 (Unfav)
401 Property Taxes $ 1,501,494 665,162 $ 696,684 $ 31,522 405 Sales Taxes 15,000 7,500 3,779 (3,721)
410 Property Transfer Tax 62,400 31,200 16,506 (14,694) 420 Motor Vehicle In Lieu 290,265 - - -
440 Building & Other Permits 450,000 225,000 334,888 109,888 441 C&D Permits 10,000 5,000 3,300 (1,700)
450 Variance, Planning & Zoning 30,000 15,000 10,850 (4,150) 455 Animal Control Fees 300 150 115 (35)
460 Franchise Fees 13,000 6,500 3,465 (3,035)
480 Fines & Traffic Violations 4,000 2,000 2,713 713
482 Cost Recovery - Publications 3,000 1,500 1,500 -
600 RHCA Lease Revenue 69,000 34,500 28,746 (5,754)
650 Public Safety Aug Fund 1,800 900 518 (382)
670 Interest on Investments 160,000 80,000 76,927 (3,073) 671 PARS Earnings 44,000 22,000 33,879 11,879
675 Miscellaneous Revenue 1,000 500 116,327 115,827
699 Transfers In - Refuse Fund 24,000 12,000 12,000 -
TOTALS $ 2,679,259 $ 1,108,912 $ 1,342,197 $ 233,285

CITY OF ROLLING HILLS
Fiscal Year 2025-26 Mid-Year Review
General Fund Revenues Through 12/31/2025

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ATTACHMENT D
Actuals Variance
Adopted Amended Pro-Rated Thru Favorable
Budget Budget Budget 12/31/25 (Unfav)
01 - CITY ADMINISTRATOR
702 Salaries -Full Time $ 453,862 $ 453,862 $ 226,931 $ 220,486 $ 6,445 705 Temporary Salaries 7,000 7,000 3,500 - 3,500
710 Retirement CalPERS-Employer 37,204 37,204 18,602 15,612 2,990 712 CalPERS Unfunded Liability - - - 54,086 (54,086)
715 Workers Compensation Insurance 9,100 9,100 4,550 8,296 (3,746) 716 Group Insurance 92,036 92,036 46,018 50,787 (4,769) 717 Retiree Medical 40,000 40,000 20,000 21,643 (1,643) 718 Employer Payroll Taxes 35,309 35,309 17,655 16,025 1,629 719 Deferred Compensation 4,141 4,141 2,071 2,124 (54)
720 Auto Allowance 3,600 3,600 1,800 1,800 -
721 Phone Allowance 2,400 2,400 1,200 1,200 -
740 Office Supplies 8,000 8,000 4,000 2,318 1,682
745 Equipment Leasing Costs 10,000 10,000 5,000 3,032 1,968 750 Dues & Subscriptions 14,822 14,822 7,411 13,695 (6,284) 755 Conference Expense 1,500 1,500 750 1,143 (393)
757 Meetings Expense 2,100 2,100 1,050 312 738
759 Training & Education 4,000 4,000 2,000 - 2,000
761 Auto Mileage 700 700 350 515 (165)
765 Postage 18,500 18,500 9,250 5,562 3,689
775 City Council Expense 7,500 7,500 3,750 1,524 2,226
776 Miscellaneous Expenses 1,500 1,500 750 269 481
780 Comm./Newsletters & Outreach 3,500 3,500 1,750 - 1,750 785 Codification 3,000 3,000 1,500 1,817 (317)
790 Advertising 2,000 2,000 1,000 - 1,000
795 Other Gen Admin Expense 3,300 3,300 1,650 1,422 228 801 City Attorney 90,000 90,000 45,000 27,840 17,160
802 Legal Expense - Other 3,000 3,000 1,500 - 1,500
804 Legal Expense -CPUC - - - 35,074 (35,074)
820 Website 3,900 3,900 1,950 - 1,950
890 Consulting Fees 10,000 10,000 5,000 289 4,711
891 Records Management 3,900 3,900 1,950 3,622 (1,672)
Total City Administrator 875,874 875,874 437,937 490,493 (52,556) Department/Object Account

CITY OF ROLLING HILLS
FY 2025-26 Mid-Year Review

GENERAL FUND
1 Page: 1

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ATTACHMENT D
Actuals Variance
Adopted Amended Pro-Rated Thru Favorable
Department/Object Account Budget Budget Budget 12/31/25 (Unfav) 05 - Finance
750 Dues & Subscriptions 4,500 4,500 2,250 1,888 362
810 Annual Audit 35,000 35,000 17,500 - 17,500
890 Consulting Fees 120,500 120,500 60,250 43,106 17,144 Total Finance 160,000 160,000 80,000 44,994 35,006
15- PLANNING & DEVELOPMENT
702 Salaries 232,520 232,520 116,260 41,099 75,161
703 Salaries - Part-Time 26,889 26,889 13,445 - 13,445
705 Temporary Salaries - - - 101,214 (101,214)
710 Retirement CalPERS-Employer 19,234 19,234 9,617 3,156 6,461 715 Workers Comp. Insurance 3,900 3,900 1,950 3,556 (1,606) 716 Group Insurance 42,977 42,977 21,489 17,280 4,209
718 Employer Payroll Taxes 20,000 20,000 10,000 3,076 6,924 719 Deferred Comp 4,681 4,681 2,341 - 2,341
720 Auto Allowance 1,200 1,200 600 - 600
721 Phone Allowance 600 600 300 - 300
750 Dues & Subscription 15,000 15,000 7,500 9,930 (2,430) 755 Conference Expense 3,000 3,000 1,500 - 1,500
759 Training & Education 1,000 1,000 500 - 500
761 Auto Mileage 300 300 150 30 120
776 Miscellaneous Expenses 2,000 2,000 1,000 - 1,000
790 Publication/Advertising/Noticing 10,000 10,000 5,000 6,795 (1,795) 802 Legal Expenses-Other 10,000 10,000 5,000 7,958 (2,958) 872 Property Development-Legal Exp 37,000 37,000 18,500 21,869 (3,369) 875 Willdan Building 45,000 45,000 22,500 30,700 (8,200) 878 Build Inspect. LA County 250,000 250,000 125,000 107,280 17,720 881 Storm Water Management 88,000 88,000 44,000 60,756 (16,756) 884 Special Project Study & Consult. 5,000 5,000 2,500 - 2,500 886 Code Enforcement 62,880 62,880 31,440 11,970 19,470 890 Consulting Fees (Onward) 7,500 7,500 3,750 - 3,750
928 Traffic Engineering 6,000 6,000 3,000 2,450 550
Total Planning & Development 894,681 894,681 447,341 429,118 18,222 2 Page: 2

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ATTACHMENT D
Actuals Variance
Adopted Amended Pro-Rated Thru Favorable
Department/Object Account Budget Budget Budget 12/31/25 (Unfav) 25 - Public Safety
830 Law Enforcement 320,424 320,424 160,212 133,510 26,702 831 Traffic Enforcement - - - 682 (682)
833 Other Law Enforcement Exp 2,400 2,400 1,200 709 491 837 Wild Life Mgmt & Pest Control 10,000 10,000 5,000 342 4,658 838 Animal Control Expense 6,500 6,500 3,250 2,779 471
Total Public Safety 339,324 339,324 169,662 138,021 31,641 65 - NON-DEPARTMENTAL
895 Insurance & Bond Expense 55,000 55,000 27,500 45,287 (17,787) 901 South Bay Comm. Organization 17,600 17,600 8,800 - 8,800 915 Community Recognition 8,000 8,000 4,000 3,463 537
917 Emergency Preparedness 69,000 69,000 34,500 13,569 20,931 Total Non-Departmental 149,600 149,600 74,800 62,320 12,480 75 - CITY PROPERTIES
892 IT Services 72,000 72,000 36,000 39,565 (3,565)
893 Granicus Services 6,600 6,600 3,300 6,570 (3,270)
894 Computer Hardware Fund 5,000 5,000 2,500 4,183 (1,683) 925 Utilities 65,000 65,000 32,500 34,307 (1,807)
930 Repairs & Maintenance 21,200 21,200 10,600 9,497 1,103 932 Area Landscaping 13,740 13,740 6,870 7,572 (702)
946 Buildings & Equipment 15,000 15,000 7,500 - 7,500
947 Non-Building Improvements 2,000 2,000 1,000 - 1,000 Total City Properties 200,540 200,540 100,270 101,694 (1,424) TOTAL OPERATING EXPENDITURES 2,620,019 2,620,019 1,310,009 1,266,640 43,369

CAPITAL TRANSFERS
Capital Projects Fund (40) - 783,848 391,924 - 391,924
Capital Grants Fund (16) - 396,667 198,334 - 198,334
- 1,180,515 590,258 - 590,258
GRAND TOTALS $ 2,620,019 $ 3,800,534 $ 1,900,267 $ 1,266,640 $ 633,627 3 Page: 3

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ATTACHMENT D
Adopted Amended Pro-Rated Actuals Variance
Budget Carryovers Amendments Budget Budget Thru 12/31/25 Fav (Unfav) 10 - COPS FUND
Revenues
570 COPS Allocation $ 172,000.00 $ - $ - $ 172,000.00 $ 86,000.00 $ 185,722.64 $ 99,722.64 Expenditures
840 COPS Program Expenditures 172,000.00 - 172,000.00 86,000.00 59,706.04 26,293.96 Revenues Over (Under) Expenditures $ - $ - $ - $ - $ - $ 126,016.60 $ 126,016.60 16 - CAPITAL GRANT FUND
Revenues
588 Crest Road FEMA Grant - 4434-526-112R $ - $ 526,502.25 $ - $ 526,502.25 $ 263,251.13 $ - $ (263,251.13) 591 Eastfield FEMA DR-4382-177-7R-CA - 928,088.25 - 928,088.25 464,044.13 646,241.19 182,197.07 XXX Rule 20A Credits/Transfers In - Crest Road 175,500.75 - 175,500.75 87,750.38 - (87,750.38) XXX Rule 20A Credits/Transfers In - Eastfiled Dr 309,362.75 - 309,362.75 154,681.38 - (154,681.38) Total Revenues - 1,939,454.00 - 1,939,454.00 969,727.00 646,241.19 (323,485.81) Expenditures
957 Crest Road East Project - 4434-526-112R - 702,003.00 702,003.00 351,001.50 - (351,001.50) 960 Eastfield Drive Utility U.G. - 4382-177-7R - 1,237,451.00 1,237,451.00 618,725.50 10,714.00 (608,011.50) Total Expenditures - 1,939,454.00 - 1,939,454.00 969,727.00 10,714.00 (959,013.00) Revenues Over (Under) Expenditures $ - $ - $ - $ - $ - $ 635,527.19 $ 635,527.19

CITY OF ROLLING HILLS
Restricted Funds and Refuse Fund
Revenues and Expenditures Through December 31, 2025
1

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ATTACHMENT D
Adopted Amended Pro-Rated Actuals Variance
Budget Carryovers Amendments Budget Budget Thru 12/31/25 Fav (Unfav) 22 - SB 1383 FUND
Revenues
Cal Recycle Grant $ - $ - $ - $ - $ - $ - $ -
Expenditures
776 Misc Expense - - - - - 17,641.59 (17,641.59)
Revenues Over (Under) Expenditures $ - $ - $ - $ - $ - $ (17,641.59) $ (17,641.59) 25 - PROPOSITION A FUND
Revenues
500 Grant Revenues $ 52,750.00 $ - $ - $ 52,750.00 $ 26,375.00 $ 22,066.54 $ (4,308.46) 670 Interest Earned 300.00 - - 300.00 150.00 - (150.00) Total Revenues 53,050.00 - - 53,050.00 26,525.00 22,066.54 (4,458.46) Expenditures
620 Prop A Exchange - - - - - - -
Revenues Over (Under) Expenditures $ 53,050.00 $ - $ - $ 53,050.00 $ 26,525.00 $ 22,066.54 $ (4,458.46) 26 - PROPOSITION C
Revenues
501 Grant Revenue-Prop C $ 43,750.00 $ - $ - $ 43,750.00 $ 21,875.00 $ 18,303.53 $ (3,571.47) 670 Interest Earned 250.00 - - 250.00 125.00 - (125.00) Total Revenues $ 44,000.00 - - 44,000.00 22,000.00 $ 18,303.53 (3,696.47) Expenditures
906 Prop C Gifted - - - - - -
Revenues Over (Under) Expenditures $ 44,000.00 $ - $ - $ 44,000.00 $ 22,000.00 $ 18,303.53 $ (3,696.47) 2

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ATTACHMENT D
Adopted Amended Pro-Rated Actuals Variance
Budget Carryovers Amendments Budget Budget Thru 12/31/25 Fav (Unfav) 27- MEASURE R TRANSIT
Revenues
502 Measure R Grant Revenues $ 29,000.00 $ - $ - $ 29,000.00 $ 14,500.00 $ 13,725.48 $ (774.52) 670 Interest Earned 250.00 - - 250.00 125.00 - (125.00) Total Revenues 29,250.00 - - 29,250.00 14,625.00 13,725.48 (899.52) Expenditures
907 Measure R Gifted - - - - - - -
Revenues Over (Under) Expenditures $ 29,250.00 $ - $ - $ 29,250.00 $ 14,625.00 $ 13,725.48 $ (899.52) 29 - MEASURE M
Revenues
507 Measure M Local Return $ 33,000.00 $ - $ - $ 33,000.00 $ 16,500.00 $ 15,557.89 $ (942.11) 670 Interest Earned 250.00 - - 250.00 125.00 - (125.00) Total Revenues 33,250.00 - - 33,250.00 16,625.00 15,557.89 (1,067.11) Expenditures
XXX Measure M Gifted - - - - - - -
Revenues Over (Under) Expenditures $ 33,250.00 $ - $ - $ 33,250.00 $ 16,625.00 $ 15,557.89 $ (1,067.11) 30 - MEASURE W
Revenues
508 Grant Revenues $ 106,000.00 $ - $ - $ 106,000.00 $ 53,000.00 $ 104,439.12 $ 51,439.12 670 Interest Earned 500.00 - - 500.00 250.00 - (250.00) Total Revenues 106,500.00 - - 106,500.00 53,250.00 104,439.12 51,189.12 3

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ATTACHMENT D
Adopted Amended Pro-Rated Actuals Variance
Budget Carryovers Amendments Budget Budget Thru 12/31/25 Fav (Unfav) Expenditures
913 Storm Water Management - 30% 31,950.00 - - 31,950.00 15,975.00 - 15,975.00 914 Storm Water Management - 70% 74,550.00 - - 74,550.00 37,275.00 15,114.70 22,160.30 106,500.00 - - 106,500.00 53,250.00 15,114.70 38,135.30 Revenues Over (Under) Expenditures $ - $ - $ - $ - $ - $ 89,324.42 $ 89,324.42 40 - CAPITAL PROJECTS FUND
Revenues
Transfers from General Fund $ - $ 524,939.00 $ 158,679.00 $ 683,618.00 $ 341,809.00 $ - $ (341,809.00) - 524,939.00 158,679.00 683,618.00 341,809.00 - (341,809.00) Expenditures
899 Outdoor Siren System - Design & Constr - 44,238.75 - 44,238.75 22,119.38 - 22,119.38 935 Tennis Court ADA Improvenments - 279,136.75 158,679.00 437,815.75 218,907.88 630,808.75 (411,900.88) 948 City Hall ADA Improvements - 82.50 - 82.50 41.25 82.50 (41.25) 949 CH Emergency Back-Up Dual-Fuel Generator - 182,719.00 - 182,719.00 91,359.50 9,395.01 81,964.49 962 Phase 1 Bifurcated 8" Sewer Main Engineering - 18,762.00 - 18,762.00 9,381.00 - 9,381.00 Total Expenditures - 524,939.00 158,679.00 683,618.00 341,809.00 640,286.26 (298,477.26) Revenues Over (Under) Expenditures $ - $ - $ - $ - $ - $ (640,286.26) $ 640,286.26 50 - REFUSE FUND
Revenues
665 Service Charges $ 1,055,603.00 $ - $ - $ 1,055,603.00 $ 527,801.50 $ 448,521.72 $ (79,279.78) Total Revenues 1,055,603.00 - - 1,055,603.00 527,801.50 448,521.72 (79,279.78) Expenditures
815 Refuse Service Contract 1,031,603.00 - - 1,031,603.00 515,801.50 517,279.68 (1,478.18) 999 Transfers Out 24,000.00 - - 24,000.00 12,000.00 12,000.00 - Total Expenditures 1,055,603.00 - - 1,055,603.00 527,801.50 529,279.68 (1,478.18) Revenues Over (Under) Expenditures $ - $ - $ - $ - $ - $ (80,757.96) $ (80,757.96) 4

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CITY OF ROLLING HILLS

MID-YEAR REPORT
SIX MONTHS ENDED DECEMBER 31, 2025

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INTRODUCTION
▪This report covers the first half of fiscal year 2025/26 (“Mid-Year Report”)
▪Mid-Year Report is the first real opportunity to see how revenues and expenditures are performing against budget ▪Most of the focus is on the General Fund
▪Attachment A covers all funds

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CONTEXT AND FRAMEWORK
▪The General Fund adopted budget is structurally balanced ▪Property taxes, which historically grow at 3-5% annually, have been impacted by land movement of last year
▪Building revenues are stronger than expected after unexplained decline last fiscal year (along with significant increase in LAC costs) ▪As budget gets more and more precise, we expect to see only minimal deviation from budget (short of a major financial event)

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GENERAL FUND REVENUES
Through December 31, 2025

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General Fund
Revenues
Seasonal/ Actuals Variance
Adopted Pro-Rated Thru Favorable
Budget Budget 12/31/25 (Unfav)
Property Taxes $ 1,501,494 665,162 $ 696,684 $ 31,522
Sales Taxes 15,000 7,500 3,779 (3,721)
Property Transfer Tax 62,400 31,200 16,506 (14,694)
Motor Vehicle In Lieu 290,265 - - -
Building & Other Permits 450,000 225,000 334,888 109,888 C&D Permits 10,000 5,000 3,300 (1,700)
Variance, Planning & Zoning 30,000 15,000 10,850 (4,150) Animal Control Fees 300 150 115 (35)
Franchise Fees 13,000 6,500 3,465 (3,035)
Fines & Traffic Violations 4,000 2,000 2,713 713
Cost Recovery - Publications 3,000 1,500 1,500 -
RHCA Lease Revenue 69,000 34,500 28,746 (5,754)
Public Safety Aug Fund 1,800 900 518 (382)
Interest on Investments 160,000 80,000 76,927 (3,073)
PARS Earnings 44,000 22,000 33,879 11,879
Miscellaneous Revenue 1,000 500 116,327 115,827
Transfers In - Refuse Fund 24,000 12,000 12,000 -
TOTALS $ 2,679,259 $ 1,108,912 $ 1,342,197 $ 233,285 Page 71 of 328 ▪ 3.3% growth in FY 2024-25 was an
historic low (excluding COVID years)
▪Likely the impact of land movements
(fewer sales)
▪The FY 2025-26 budget assumed a 3.5%
growth
▪Actual results for FY 24-25 were better
than assumed, so only need 1.5% growth
to meet budget
▪Expect P/T revenues to slightly exceed
budget

PROPERTY TAXES

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▪ FY 24-25 revenues were ~$150k down from
FY 23-24; and LAC charges were up by ~$100k
(still unresolved)
▪Revenues and charges from LAC appear to
have returned to “normal”
▪Chart does not include revenues collected by
Willdan from their expedited
building/planning services
▪ They have collected $191,219 through
12/31/2025.
▪ FY 24-25 total was $107k
▪Expect to well exceed $450k budget by FYE
Building Revenues

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▪ City has received approximately $115,000 from RHCA for their share of the Tennis Courts ADA Improvement Project
▪Remaining payments will be received before fiscal year end ▪Once the full project costs are known along with their share (50%), staff will bring to CC a recommended budget amendment to:

1. Increase the project budget to the full cost (vs just City share)

2. Add the funding from RCHA to the revenue budget
Miscellaneous Revenues

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GENERAL FUND EXPENDITURES
Through December 31, 2025

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General Fund Expenditures by Department
Adopted Amended Prop-Rate Actuals
Department Budget Budget Budget at 12/31/25 Variance
City Administrator $ 875,874 $ 875,874 $ 437,937 $ 490,493 $ (52,556) Finance 160,000 160,000 80,000 44,994 35,006
Planning & Development 894,681 894,681 447,341 429,118 18,222 Public Safety 339,324 339,324 169,662 138,021 31,641
Non-Departmental 149,600 149,600 74,800 62,320 12,480
City Properties 200,540 200,540 100,270 101,694 (1,424) Total Operations $ 2,620,019 $ 2,620,019 $ 1,310,009 $ 1,266,640 $ 43,369 Page 76 of 328

CITY ADMINISTRATION BUDGET
▪Unfavorable variance of $52,556
▪Two reasons:
▪Unbudgeted payments of $54,086 to CalPERS for Unfunded Pension Liability (will be reimbursed by Section 115 Trust)
▪Legal costs related to land movement totaling $35,074

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FINANCE BUDGET
▪$160,000 budget consists of 3 accounts
▪Dues & Subscriptions ($4,500) for financial management system ▪Annual Audit ($35,000)
▪ Finance Department contracted staff ($120,000)
▪Details of contract for Finance services
▪ $120,000 budget has not increased in over 10 years
▪ Includes 4 part-time staff (FD, Payroll Clerk, Accounts Payable Clerk, and Sr.

Accountant)
▪ $17,144 favorable variance through mid-year
▪Audit also under budget – no payments made through 12/31/2025

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PLANNING DEPARTMENT
▪In total $18,222 under budget
▪Notable variances at the account level
▪Temporary Salaries – Contracted planning staff costs of $101,214 (unbudgeted)
▪ Funded from savings of $108,000 from staff vacancies
▪Building Services (LACDPW) – Savings of $17,720 due to only 4 invoices received
▪Code Enforcement – Savings of $62,880 due to function being brought inhouse

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PUBLIC SAFETY DEPARTMENT
▪Of the total $339,324 budget, $320,424 allocated to law enforcement services
▪$26,702 savings in this account due to only 5 invoices being received and paid

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Conclusion
▪Expect revenues to exceed budget due to:
▪Conservative budget for property taxes even though growth is still muted
▪Strong revenues from expedited building/planning services ▪General Fund budget remains structurally balanced and is expected to remain so for next fiscal year

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QUESTIONS/DISCUSSION

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Item: 12.B.

Meeting Date: 2/9/2026
To: City Council
From: Samantha Crew, Management Analyst
Thru: Karina Bañales, City Manager
Subject: Discussion of Contract Performance and Potential Expansion of the City's Outdoor Emergency Warning System
Background:

On January 12, staff presented a report (Attachment A) addressing payment of the remaining balance under the 2023 Professional Services Agreement (PSA), contingent upon City Council’s selected course of action. The report then outlined the contract performance discrepancies related to the system’s inability to achieve the 70 dB sound threshold at every property. To address these issues, staff presented three options for Council consideration: (1) City funding of equipment costs to support system expansion; (2) issuance of a formal notice of non-performance to HQE; or (3) a hybrid approach in which the City would fund equipment costs in exchange for credits or offsets from HQE for ongoing maintenance or future system enhancements. Finally, the report requested Council acknowledgment of the Rolling Hills Community Association’s (RHCA) approval of the Easement License for the Upper Blackwater siren site.

One Council Member was absent from the January 12 meeting. Accordingly, the Council voted to table the item to allow for full Council participation and additional time for staff to gather information to support Council’s decision-making. This report includes supplemental information, including estimated costs per siren pole.

This staff report is structured in two distinct parts. Part One addresses payment of the remaining contract balance and summarizes the scope of work performed under the 2023 Professional Services Agreement (PSA). It also examines the challenges associated with meeting the PSA’s requirement to achieve a 70 dB outdoor sound threshold at every residence within Rolling Hills and reviews the contractual language that established that standard. Part One presents the basis for reconsidering and potentially amending the PSA to reflect a more attainable, industry-standard performance framework. City Council direction in Part One will establish the City’s contract posture, including whether to amend the PSA or pursue non-performance remedies, and will determine whether the report proceeds to Part Two.

Part Two of the report is contingent upon City Council’s determination in Part One. Part Two

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addresses cost-allocation responsibilities between the City and HQE, summarizes system testing results and performance findings, and outlines proposed expansion locations and configuration options. Part Two also includes authorization considerations for the RHCA-approved Upper Blackwater siren installation, review of alternative expansion scenarios for the Chesterfield and Ringbit areas, associated fiscal impacts, and recommended next steps for community engagement.

In addition, Part Two provides an update on the SAFE Network as a complementary alerting tool and identifies HQE’s value-added contributions offered at no cost to the City.

Discussion:

PART ONE
Remaining Contract Balance Under the 2023 PSA
The 2023 Professional Services Agreement (PSA) remains substantially complete, with the primary system components installed and operational. Payment of the remaining contract balance would fulfill the City’s outstanding financial obligation under the original agreement and formally acknowledge completion of the initial scope of work. Council consideration of this payment is tied to clarification of the City’s contract position and determination of how to proceed with any potential future system modifications or expansion.

Project Cost $261,000
Remaining Balance $13,050
Recommendation
Staff seeks City Council direction to process payment of the remaining balance owed to HQE Systems for work performed under the Professional Services Agreement.

Scope of Work Performed
HQE Systems has completed the work outlined in the Professional Services Agreement (PSA), with the exception of achieving the required 70 dB sound level at every residence. Under the PSA, HQE was responsible for delivering a turnkey emergency communications system consisting of three 50- foot speaker towers (two directional and one omni-directional) with intelligible voice and tone capability at the Fire Station, East Gate, and City Hall locations. The scope also included speaker and audio components capable of producing the specified sound pressure levels, remote system management and activation through an Advanced Communication Module (ACM), and reasonable efforts toward integration with regional alert systems. Three siren poles were installed in September 2024.

Outdoor sirens are designed to provide outdoor coverage. The original comprehensive system concept, which included nine siren poles, was intended to deliver approximately 85 dB outdoor coverage, with the anticipated benefit that indoor sound levels could reach approximately 70 dB within residences. Mindful of fiscal constraints, the City Council approved a reduced configuration of three siren poles as the most cost-effective approach. At the time, HQE indicated that the reduced system could still meet contract performance standards.

Professional Services Agreement Language
On June 26, 2023, staff presented proposed Professional Services Agreement (PSA) language to the City Council outlining the scope of work for an emergency outdoor siren system. While the initial draft

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did not specify a sound-level performance standard, the Council approved the PSA with HQE Systems, Inc. and directed that additional language be incorporated requiring a minimum of 70 dB outdoor sound coverage for all City residences. At Council’s direction, the City Attorney at the time drafted the following language, which was subsequently incorporated into and executed as part of the current PSA:

CONSULTANT shall perform all work necessary to complete in a manner satisfactory to CITY the services set forth in the attached Exhibit A. The end result of the services shall include a turnkey emergency communications system which includes, but is not limited to; (i) three, 50 foot speaker towers (two directional and one omni-directional) equipped with intelligible voice and tone capability at the three locations identified in Exhibit A and referred to as the First Station Tower, Easter Gate Tower and City Hall Tower which shall result in a system that, at a minimum, produces the specified Sound Pressure Level identified by the Original Equipment Manufacturer to ensure proper coverage.

Outside of extraordinary circumstances on a property (e.g. loud generator, wall of 100' trees covering the perimeter of a property, etc.), CONSULTANT warrants that the system is designed to reach 70 dB at each residence in the City; (ii) speaker/audio system that can provide the-listed decibel levels throughout the City as described in Exhibit A; (iii) system that can be managed and activated via an Advanced Communication Module (ACM) to remotely access, control and activate via a secure portal; (iv) reasonable efforts such that the system may be integrated with other regional alert systems which may require additional costs (collectively referred to as "SERVICES").

Following the City Council’s direction to include language requiring 70 dB at every residence, HQE raised concerns regarding the feasibility of that standard. As reflected in correspondence between staff and HQE (Attachment B), HQE advised that specifying a fixed decibel level at each residence is inconsistent with industry practice and difficult to achieve under real-world conditions. HQE proposed revising the language to reflect the industry standard approach, under which sirens are required to produce the sound pressure levels specified by the original equipment manufacturer to ensure proper coverage. This approach accounts for factors beyond system control, such as on-site generators or dense vegetation, and reduces potential liability exposure for the City.

Challenges with the performance of 70db
Achieving a uniform outdoor sound level of 70 dB at every individual residence cannot be reliably guaranteed due to factors such as terrain, vegetation, and changing meteorological conditions.

Requiring that level of precision would be cost-prohibitive.

By way of example, staff consulted with the Public Works/Town Engineer for the Town of Paradise, who noted that field measurements using a sound level meter can vary significantly based on conditions. He observed sound levels fluctuate from approximately 75 dB to as low as 25 dB during wind gusts, illustrating the inherent variability of outdoor sound propagation.

Following installation of the three siren poles, operational testing was conducted in fall 2024 to evaluate system performance. While the sirens were functional, testing indicated that sound levels in certain areas of the City were below the contractually specified 70 dB threshold. To allow additional time for evaluation and coordination, the City approved a contract amendment in December 2024 extending the project timeline.

The system configuration under consideration, including additional installations in the Upper Blackwater, Chesterfield, and Ringbit areas, represents a good-faith effort to meet industry standards for outdoor warning sirens and aligns with FEMA guidance. The system, after expansion, is designed to provide audible and intelligible alerts, incorporate redundancy, be equitably sited, integrate with complementary alerting tools, and be supported by ongoing public education.

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The expectation should not be perfect coverage, but rather improved and equitable coverage across the City. This expansion effort represents a meaningful step forward in enhancing overall system performance and strengthening citywide emergency alerting capability.

Contract Posture
The January 12 staff report presented three potential paths forward: Option 1, City funding of equipment costs for additional siren poles; Option 2, issuance of a formal notice of non-performance; and Option 3, a hybrid approach under which the City would fund equipment costs while receiving contractual credits or offsets. To reduce complexity and simplify the decision before Council, staff recommend that the Council select an overall approach this evening based on the following options:

Option 1:

Amend the Professional Services Agreement (PSA) to establish a more attainable performance framework by removing the following language: "Outside of extraordinary circumstances on a property (e.g. loud generator, wall of 100' trees covering the perimeter of a property, etc.), CONSULTANT warrants that the system is designed to reach 70 dB at each residence in the City..." This action would not authorize system expansion but would establish a contractual foundation that could support future expansion should Council elect to proceed with additional siren poles.

Option 2:

Issue a formal notice of non-performance.

Recommendation: Staff seeks City Council consideration and direction to:

1. On the City’s contract posture. Select either Option 1 or Option 2 as a standalone action. • The selection of Option 1 allows the report to proceed to the Discussion Part 2. • Selection of Option 2 concludes Council consideration of this item for the meeting. No expansion decisions, funding authorizations, or design selections are included in this action.

Consideration of Contract Closeout with HQE
City Council has the option to close out the current professional services contract with HQE, which would result in the City retaining the existing three siren poles as the final project configuration.

Should City Council direct staff to proceed with closing out the contract, staff will return to City Council with a final staff report summarizing the work completed, outlining the remaining administrative closeout steps, and formally concluding the project.

Recommendation: Staff seeks City Council consideration and direction to:

1. Close out the HQE Professional Services Agreement.

PART TWO
Allocation of Costs for System Expansion
At the January 27, 2025 City Council meeting, Council discussed siren testing results and concerns that sound propagation was not meeting expectations. During that discussion, Charles West, HQE’s project manager at the time, advised that once testing was complete, any identified coverage gaps outside the 70 dB target could be addressed through the addition of smaller siren poles, which would

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likely be installed at HQE’s expense. When asked why system expansion was being discussed prior to the completion of additional sound testing, Mr. West explained that early testing had already revealed areas where adjustments would likely be needed and that preliminary planning for potential modifications, including targeted system refinements, was appropriate at that stage. Mr. West emphasized HQE’s commitment to the success of the project, noting that the system is a life-safety measure for the Rolling Hills community.

HQE conducted system tests on March 4, 2025. The results, summarized in Attachment C, confirm that the siren system is fully operational and performing within factory-rated sound output standards, providing broad outdoor coverage throughout Rolling Hills. Sound pressure level (SPL) variations were observed and are attributable to terrain conditions and City-directed installation constraints, including reduced pole height at the Fire Station location. The report says that these variations are consistent with expected acoustic behavior and do not indicate system malfunction. Resident feedback and test data showed that approximately 75 percent of residents heard the siren during testing. HQE identified system expansion to further optimize coverage.

In early 2025, City Council provided direction for staff to continue engaging with HQE to explore potential pathways toward meeting the system’s performance objectives, while also considering how the SAFE Network could serve as a complementary alerting tool.

On May 12, 2025, HQE proposed a revised cost-sharing approach under which the City would fund the equipment and materials for three additional 50-foot sirens, with HQE covering labor and related project costs. This proposal represented a shift from the City’s earlier understanding that system expansion would not require additional City funding, as the system had not achieved the original 70 dB performance standard. HQE identified the City’s complex topography as a contributing factor affecting system performance and acknowledged that it was incurring financial losses on the project.

If Council elects to proceed with expansion, a funding strategy must be identified that aligns with the City’s fiscal limitations and clearly defines future contractual obligations.

While Council has not approved funding for additional sirens, staff were directed to continue coordinating with HQE to evaluate potential expansion sites, balancing sound coverage objectives with aesthetic impacts to surrounding neighborhoods.

The three siren poles were installed in September 2024. From September 2024 through January 2026, approximately 16 months, HQE performed ongoing system maintenance during installation and continues to provide maintenance services at no cost to the City. In addition, HQE representatives have visited the City on multiple occasions for City Council discussions, site reconnaissance, and Dig Alert staking. HQE has also hosted a public webinar for residents, participated in numerous coordination meetings with City staff, evaluated more than 50 potential siren locations, and met with the Rolling Hills Community Association regarding siren locations and proposed installations.

Recently RHCA-Approved Upper Blackwater
On October 30, 2025, the City formally requested authorization from the Rolling Hills Community Association (RHCA) to place a 50-foot outdoor emergency siren within the Garden Triangle area near Upper Blackwater Canyon Road and Portuguese Bend Road, as part of the proposed expansion of the City’s emergency alert system. After conducting a site inspection and evaluating the request, the RHCA Board considered the application and approved the easement license by a 3–1 vote, with one board member not present for the vote.

With RHCA licensing approved for the Upper Blackwater and Portuguese Bend (Garden Triangle) location, HQE is ready to proceed with planning and permitting once updated contractual terms are in

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place. Among the remaining locations, Upper Blackwater presents the most straightforward path forward, with a single 50-foot siren pole meeting the coverage needs for the area.

HQE identified Upper Blackwater as a key location through detailed sound modeling, terrain analysis, and propagation mapping, which showed that this site is necessary to close remaining coverage gaps following installation of the initial three sirens. Together with the Chesterfield and Ringbit Road West locations, Upper Blackwater represents one of the final installations needed to achieve consistent outdoor warning coverage citywide. Site evaluations, sound-map reviews, utility coordination, neighborhood outreach, pole mock-ups, and the RHCA licensing process have all been completed to validate this location as the preferred option with minimal visual and community impact.

Fiscal Impacts - Upper Blackwater Siren Pole
Part Equipment Description Quantity Price
SiRcom:

LAS-4-120
SLA, Digital, 4 LAS-120 Line Arrays,
PA-11D, Complete Set with 50' Class
II Wood Pole
1 $44,469.08
HQE Wood
Pole
Direct Burial Wood Pole, 50' 1 $3,866.88
Total Equipment Cost $48,335.96
*HQE Systems will be responsible for all labor and other direct project costs and has requested that the City assume responsibility for equipment costs only.

Recommendation: Staff seeks City Council consideration and direction to:

1. Bring back an amendment to the contract for the Upper Blackwater siren installation; and

2. Authorize staff to proceed with obtaining all necessary permits and related coordination in order to implement the Upper Blackwater installation
Chesterfield and Ringbit Locations
In advance of the September 22, 2025 City Council meeting, staff coordinated and arranged an onsite demonstration at the proposed Chesterfield cul-de-sac siren locations, which Council members were invited to attend. A mock-up siren pole was installed to illustrate the proposed configuration.

During the September 22 Council meeting, concerns were raised that a 50-foot siren pole could negatively affect residential views. Similar view-related concerns had also been expressed by residents in the Ringbit area, where the originally proposed siren location generated community pushback.

At the September 22 meeting, Council discussed whether reducing pole height could mitigate view impacts at both the Chesterfield and Ringbit locations. HQE advised that lowering pole height would reduce sound propagation and diminish effective coverage in those areas. Following discussion, Council directed staff to evaluate alternatives involving two 30-foot siren poles in or around the Chesterfield sound propagation area and to proceed with Dig Alert staking at the Southfield/Ringbit Road West intersection, the Southfield/Flying Mane intersection, and within the Flying Triangle on Portuguese Bend Road just north of Ranchero Road, with consideration given to installing two 30-foot poles in the Ringbit area in lieu of a single 50-foot pole in the Ringbit cul-de-sac.

Under Review - Chesterfield Area

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The City Council previously directed staff to explore reducing the originally proposed 50-foot siren pole in the Chesterfield cul-de-sac to 30 feet, prompting the need to identify a secondary supporting location. The following candidate sites were reviewed:
• 33.76077 N, -118.33959 W – Near 2 Chesterfield on Chuckwagon • 33.76165 N, -118.34022 W – Near 40 Chuckwagon
• 33.75880 N, -118.33855 W – Near 15 Chuckwagon
• 33.765092 N, -118.342866 W – Near the riding arena on Poppy Trail HQE determined that the side easement at Chuckwagon and Bowie provides the best complementary coverage for the Chesterfield/Chuckwagon area, selected not only for its sound-coverage benefits but also for utility and practical installation considerations.

Under Review - Ringbit Rd W Area
Due to view impacts associated with a 50-foot siren at the Ringbit Road West cul-de-sac, Council directed staff to evaluate alternatives. HQE re-examined the area and identified the following options:

Option A: Install a 30-foot pole at the Ringbit cul-de-sac and pair it with a second pole in the Flying Triangle turnout area above Ranchero Road.

Option B: Relocate the proposed 50-foot Ringbit pole toward the Ringbit/Southfield intersection, with negligible impact on projected coverage. Variations on both sides of the intersection remain feasible.

Option C: Move forward with the original design and place a 50-foot pole in the Ringbit cul-de-sac.

Chesterfield and Ringbit Fiscal Impacts:

One Pole Option:

Part Equipment Description Quantity & Height Price
SiRcom: LAS-4-120 SLA, Digital, 4 LAS-120 Line Arrays,
PA-11D, Complete Set with Class II
Wood Pole
1 $ 44,469.08
HQE-Wood-Pole Direct Burial Wood Pole 1 x 50' $ 3,866.88 Total Equipment Cost $ 48,335.96
Two-Pole Option:

Part Equipment Description Quantity and
Height
Price
SiRcom: LAS4-060SLA, Digital, 4 LAS-60 Line Arrays,
PA-11D, Complete Set
2 x 30' 2 x $ 28,273.44 =
$56,546.88
HQE-WoodPoleDirect Burial Wood Pole, 30' 2 x 30' 2 x $ 2,458.56 = $4,917.12
Total Equipment Cost $61,464.00
*HQE Systems will be responsible for all labor and other direct project costs and has requested that the City assume responsibility for equipment costs only.

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Recommendation: Staff seeks City Council consideration and direction to:

1. Proceed with community engagement; and

2. Instruct staff to return at a later date with a separate staff report requesting Council consideration and approval of proposed siren locations in the Chesterfield and Ringbit areas.

ADDITIONAL INFORMATION
HQE Value-Added Contributions (Provided at No Cost to the City) HQE has acknowledged the challenges inherent in this project and has expressed a clear commitment to delivering the most effective emergency alerting system possible within the constraints imposed by the City’s complex topography and available funding. HQE has emphasized that public safety remains their highest priority, and that system design, performance, and reliability during an emergency continue to guide their approach to the project. In furtherance of this commitment, HQE has offered the following contributions at no cost to the City to help enhance overall system performance, reliability and redundancy:

SAFE Grant / SAFE Network System
• Open market value: Over $30,000
• Estimated $105,231 in potential community savings if all 2,100 SAFE home units are purchased (offered at cost)
• Estimated total system cost exceeding $135,000, offset through grant participation and negotiated pricing
Alert and Warning Software Package
• Use of software supporting up to 100,000 alerts
• Estimated value: $5,000
Emergency Management Operations Planning Support
• Development assistance and technical support
• Estimated value: $15,000
Maintenance Fee Waiver
• No system maintenance fees charged during the past year, while full system handoff has been delayed
LTE / SIM Service Package (April 25 Offer)
Two-year LTE/SIM service package for three additional locations, provided at no costExploratory Expansion and Planning Support (1 year - all provided without additional charges to the City)Multiple system design concepts
Exploratory site visits
Utility staking coordination
Technical research
Attendance and participation in City Council meetings
Proposal development and preparation
Communication and responses to staff requests for information

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Safe Units
The SAFE Network is a resilient, standalone public-safety communications platform that operates independently of cellular networks, Internet service, and commercial power, allowing emergency alerts and information to be transmitted even when traditional infrastructure is compromised during major events such as power outages or disasters. Unlike the outdoor emergency siren system, which delivers broad, outdoor warnings to alert the community of imminent danger, the SAFE Network creates a redundant and mesh-enabled communications layer that supports indoor notifications, realtime alerts, and bidirectional messaging directly to residents’ units via a network of battery-powered nodes that communicate with one another so that messages continue to propagate even if individual nodes fail. This system enhances the City’s emergency communications strategy by providing deeper reach and maintaining contact with residents when sirens alone may not be heard indoors or in isolated areas.

In 2024, HQE awarded the City a SAFE Network grant, and in 2026 the grant was amended to include an additional 1,400 indoor SAFE Units offered to residents at cost to better align with the City’s larger average home sizes (Attachment D). Each SAFE Unit is designed to provide reliable coverage for approximately 3,500 square feet. HQE is currently preparing to install SAFE Network gateways throughout Rolling Hills, which are required to support system functionality. In parallel, HQE has launched a public-facing website that will allow residents to directly order SAFE Units as the program is rolled out citywide.

Staff spoke with the Public Works Director/Town Engineer in the Town of Paradise, who clarified that installation of the SAFE Network in their town remains unfinished and is taking longer than anticipated. This underscores that, as a fully separate and more complex communications infrastructure, SAFE Network deployment in Rolling Hills will also be phased and incremental. The SAFE Network’s effectiveness increases as more residents adopt indoor units and as additional gateway and mesh nodes become operational; this network-effect phenomenon means coverage and redundancy improve over time with broader participation and unit activation. Educating residents on the benefits of owning SAFE units and securing buy-in will be a critical part of implementation. As such, it is anticipated that achieving a fully effective SAFE Network system will take time and sustained community engagement. HQE visited the City on January 26–27 to perform maintenance on the existing three siren poles and captured comprehensive equipment data. This information is essential for HQE’s engineering team to finalize the SAFE Network gateway installation plan and facilitate subsequent phases of deployment.

Comparison of Emergency Alerting and Notification Systems Feature Outdoor Emergency Siren
System
SAFE Network Alert SouthBay
Primary
Purpose
Provide immediate, areawide outdoor warning of
imminent danger
Deliver resilient, indoor
emergency notifications and
maintain communications
during infrastructure
disruptions
Distribute official
emergency
information and
advisories via
traditional
communications
channels
Audience
Reach
Community-wide, outdoor
listeners (residents, visitors,
motorists)
Individual households with
installed SAFE units
Registered users
(residents,
businesses,
visitors)

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Alert Method Audible siren tones and
voice announcements
broadcast from fixed poles
Indoor audio/visual alerts
transmitted through SAFE
units
SMS text
messages, emails,
voice calls, and
mobile app
notifications
Power &
Connectivity
Fixed infrastructure with
backup power
Operates independently of
cellular networks, internet,
and commercial power
Relies on cellular
networks, internet
service, and user
devices
Coverage Type Broad, outdoor sound
propagation
Incremental, network-based
indoor coverage
Digital, user-based
distribution
Effectiveness
Indoors
Limited; varies by distance,
terrain, and building
construction
Designed specifically for
indoor notification
High, provided
users have power,
connectivity, and
functioning devices
System
Architecture
Standalone siren poles with
defined coverage radius
Mesh/relay network where
gateways and units
communicate and extend
coverage as participation
grows
Centralized mass
notification platform
Scalability Fixed once installed Improves over time as more residents purchase and
activate units
Expands as more
users voluntarily
register
User Action
Required
None Residents must purchase
and install SAFE units
Users must opt in
and keep contact
information current
Role in
Redundancy
Strategy
Primary outdoor alerting
layer
Resilient, infrastructureindependent backup and
enhancement layer
Primary digital
communications
and informationsharing tool
Implementation
Timeline
Immediate once installed Phased; dependent on
infrastructure build-out and
resident adoption
Already operational;
effectiveness
depends on
registration levels
Conclusion
This siren project was initiated by the City’s Block Captains with the shared goal of strengthening community safety, preparedness, and overall resiliency. Their advocacy reflects a clear communitydriven desire to improve emergency notification capabilities and ensure residents receive timely, reliable alerts during critical incidents. As the project has progressed, it has become evident that there are difficult but necessary decisions before the City Council. Foremost among these is the need to address and resolve the contractual discrepancy related to the unachievable 70 dB performance threshold. Clarifying and reconciling this issue is a critical foundational step and will provide the City with a clear, defensible framework moving forward.

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Once this matter is resolved, the City Council will be positioned to determine whether to proceed with an expansion of the siren system. That decision should be guided by the overarching objective that motivated this effort from the outset: strengthening the ability to alert residents during emergencies and ensuring the outdoor warning system functions as a reliable, effective tool for public safety, consistent with the original community-led intent of the project.

Fiscal Impact:

Part One:

Payment of the remaining balance under the 2023 Professional Services Agreement (PSA) would fulfill the City’s existing contractual obligation for the original scope of work. No additional funds beyond those previously appropriated are required for this action.

Project Cost = $261,000
Remaining Balance = $13,050
Part Two:

If City Council elects to consider system expansion, fiscal impacts would be limited to equipment costs only, consistent with HQE’s proposal (Attachment E). HQE would be responsible for all labor and related project costs. Any funding for expansion would require separate Council authorization.

Single 50-foot siren pole (Upper Blackwater, Chesterfield, or Ringbit):

Total project cost: $93,610.21
City responsibility (equipment): $48,335.96
HQE responsibility (labor and other costs): $45,274.25
Two 30-foot siren poles (Chesterfield or Ringbit alternative):

Total project cost: $105,886.32
City responsibility (equipment): $61,464.00
HQE responsibility (labor and other costs): $44,422.32
Recommendation:

Part One Recommendations:

Staff seeks City Council direction on the following:

1. Process payment of the remaining balance owed to HQE Systems for work performed under the Professional Services Agreement.

2. Contract Posture: select either Option 1 (Amend PSA to establish a more attainable performance framework) or Option 2 (Issue a formal notice of non-performance) as a standalone action.

3. Close out the HQE Professional Services Agreement.

Part Two Recommendations:

Staff seeks City Council direction on the following:

2. Direct staff to proceed with community engagement (regarding the Chesterfield and Ringbit areas); and

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3. Instruct staff to return at a later date with a separate staff report requesting Council consideration and approval of proposed siren locations in the Chesterfield and Ringbit areas.

Attachments:

1. Attachement A - CL_AGN_CC_260112_SirenUpdate

2. Attachment B - CL_AGN_260209_HQE-Staff Correspondance_Redacted

3. Attachment C - CL_AGN_260209_HQE Operational Test (Mar 4,2025)

4. Attachment D - CL_AGN_260209_HQE-SAFE Grant 2024 & 2026

5. Attachment E - CL_AGN_260209_CC_HQEProposal

6. CL_AGN_260209_CC_Item12B_PublicComment01_Redacted

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Item: 12.A.

Meeting Date: 1/12/2026
To: City Council
From: Samantha Crew, Management Analyst
Thru: Karina Bañales, City Manager
Subject: Consideration and Discussion of the City’s Outdoor Emergency Warning System Contractual Framework
Background:

Contractual Framework
The City entered into an agreement with HQE Systems on June 23, 2023, for a turnkey emergency communications system, including three 50-foot outdoor sirens capable of producing intelligible voice and tone alerts, with a minimum of 70 dB outdoor coverage at all Rolling Hills properties under normal conditions.

Three poles were installed in September 2024 at:

1. City Hall

2. Fire Station 56 (Crest Road West)

3. Crest Road East Gate
Initial system testing occurred on October 16, 2024. On December 11, 2024, the City executed a First Amendment extending the contract term to allow HQE to continue working toward full completion of the scope. Although all three siren poles were installed and operational at that time, the system had not yet achieved the 70 dB minimum coverage in all areas of the City.

On January 27, 2025, Council directed staff to continue working with HQE to meet the contractual sound-coverage obligations while simultaneously preparing for the future implementation of the SAFE Network as an augmented communication layer.

On May 12, 2025, HQE proposed a funding shift in which the City would cover the cost of equipment and materials for three additional 50-foot sirens, while HQE would provide labor and other direct costs. The City had previously understood that no additional costs would be incurred for the system expansion because the original agreement’s 70 dB performance requirement had not been met. HQE conceded that the topography of Rolling Hills presented unexpected challenges in meeting the original terms of the contract and that HQE would be operating at a loss on this particular project. As a result, should the City Council elect to proceed with system expansion, the City must determine an

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appropriate funding approach that reflects its limited resources, supports project completion, and establishes clear contractual terms moving forward.

RHCA Easement License Determination
On October 30, 2025, the City submitted an Easement License Application to the Rolling Hills Community Association (RHCA) for installation of a 50-foot outdoor emergency siren at the Garden Triangle near Upper Blackwater Canyon Road and Portuguese Bend Road as part of the City’s proposed siren expansion project. Following a site visit and review, the RHCA Board voted 3-1, with one member absent, to approve the request.

Discussion:

Contract and Funding Obligations
While the original proposal envisioned installation of 12 outdoor sirens, the City Council, mindful of fiscal limitations, approved installation of three as the most cost-effective path. HQE committed that this reduced configuration could still achieve contract performance standards, a position that both parties now recognize was overly optimistic.

As noted above, HQE has requested that the City cover the equipment costs for installing additional poles. To advance the expansion, revisiting and updating the contractual terms is now the necessary next step. The expansion research phase, completed at no cost to the City, has concluded, and HQE is prepared to proceed once an amendment to the Professional Services Agreement (PSA) is executed, and funding and licensing approvals are in place. Moving forward with these actions will position this important public-safety initiative to better alert all Rolling Hills residents in the event of an emergency or evacuation, establishing a clear path toward completing the siren project.

Below are three viable paths forward for City Council consideration.

Option 1 – City Funds the Equipment Costs of Additional Poles Under this option, the City would agree to fund the equipment portion of the remaining poles, contingent upon HQE providing written confirmation that they will:
• Install a turnkey emergency communications system equipped with intelligible voice and tone capability, managed and activated through a secure Advanced Communication Module (ACM). • Complete installation of the SAFE Network and provide a complimentary alert-and-warning software package capable of supporting up to 100,000 emergency notifications. • Provide documentation, field testing, and final sound-coverage mapping demonstrating equitable, reliable, and consistent citywide outdoor-warning performance that meets the City’s emergency-notification needs.

Pros:
• Ensures timely completion of the expansion project.
• Maintains a strong working relationship with HQE.
• Offers dependable, community-wide outdoor-warning coverage that improves the City’s overall emergency-notification capabilities.

Cons:
• City assumes additional unplanned costs.

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Option 2 – City Issues Formal Notice of Non-Performance Under this approach, the City would formally notify HQE that they are not meeting contractual obligations, placing responsibility for any additional poles or system modifications solely on the vendor.

Pros:
• Holds the vendor fully accountable for contract performance. • Avoids additional cost to the City.
• Demonstrates to the public that the City enforces contract compliance.

Cons:
• May significantly strain the relationship with HQE.
• Could delay project timelines.
• May escalate to mediation or arbitration.

Option 3 – Hybrid Approach (City Funds Equipment Costs but Receives Credits/Offsets) In this option, the City would fund the equipment costs for the remaining poles but negotiate compensatory value from HQE, such as:
• Extended warranties.
• Reduced or capped future maintenance costs.
• Additional discounts on SAFE Network units for residents. • Reduced fees for future siren integration or software upgrades. • Annual data usage for Satellite and Cellular Communications.

Pros:
• Preserves collaboration while recapturing significant value. • Avoids conflict and supports project momentum.
• Provides an opportunity to clarify ambiguities in current contract terms (e.g., the 70 dB standard).

Cons:
• City still incurs upfront costs.

HQE Grant-Supported Enhancements
To help enhance the City’s existing three-siren system, which did not fully achieve the promised 70 dB citywide coverage, HQE offered Rolling Hills the Community SAFE Grant. This grant provides the City with a no-cost installation of the SAFE Network System (valued at over $30,000), a resilient emergency communication platform designed to operate independently of cellular or AC power. It also offers residents up to 2,100 Indoor SAFE Units at deeply discounted, at-cost pricing, generating more than $105,231,000 in potential community savings if all units were purchased. In addition, HQE has provided a complimentary alert-and-warning software package capable of supporting up to

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100,000 emergency notifications (valued at $5,000), as well as Emergency Management Operations Plans Development Support valued at $15,000. Overall, the donated commitments offered through the City’s siren vendor, HQE, represent more than $155,231.00 in public-safety enhancements at no cost to the City.

System Coverage
While the original commitment of achieving 70 dB outdoor coverage at every individual residence cannot be guaranteed due to terrain, vegetation, and meteorological variability, an expansion strategy, which the City Council has previously discussed, would be considered at a separate City Council meeting and would provide an equitable and reliable improvement to the City’s outdoorwarning coverage. The expectation should not be perfection, as achieving that level of precision would be cost-prohibitive. Instead, this expansion effort would represent a meaningful step forward, significantly enhancing system performance and improving citywide coverage. Continued enhancements over time may provide the most practical and sustainable path for the City.

It is important to note that the approach under consideration by the City Council meets industry standards for outdoor siren systems and is consistent with FEMA guidance. The system provides audible and intelligible alerts, incorporates redundancy, is equitably sited, integrates with complementary alerting and notification tools, and is supported by ongoing public education.

Accordingly, the outdoor siren system remains an essential component of the City’s multi-layered emergency-alerting framework and supports rapid public notification during critical life-safety events.

Upper Blackwater Location
The City’s siren vendor, HQE Systems, determined, through extensive acoustic modeling, topographic analysis, and sound-propagation mapping, that the Upper Blackwater location is a significant component in addressing the remaining sound coverage gaps identified after installation of the initial three poles. Along with the Chesterfield and Ringbit Rd W locations, this site is one of the three remaining installations needed to achieve consistent citywide outdoor-warning performance.

HQE and staff conducted sound-map reviews, site visits, utility assessments, neighborhood meetings, pole mock-ups, and the RHCA easement licensing process to confirm this site as the preferred placement with minimal view and community impact.

To move forward with the Upper Blackwater siren installation, amended contractual terms must first be finalized. Staff anticipates returning to the City Council in the near future to present HQE’s cost proposal and scope of work for this location under a separate agenda item.

Conclusion
This evening, staff request that the City Council provide direction on the following items:

1. Determine the City’s preferred course of action regarding the contractual discrepancy with HQE Systems by selecting one of the following options:

Option 1: City funds the equipment costs of additional poles; Option 2: City issues a formal notice of non-performance; or Option 3: A hybrid approach in which the City funds equipment costs but receives credits or offsets.

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no payment of the remaining balance would be authorized, and staff would proceed consistent with a notice of non-performance.

3. Acknowledge the RHCA approval of the Easement License for the Upper Blackwater siren site.

Fiscal Impact:

Under the June 2023 PSA Scope of Work:
• Invoiced to Date: Two Hundred Forty-Seven Thousand Nine Hundred Fifty Dollars ($247,950.00)
• Remaining Balance: Thirteen Thousand Fifty Dollars ($13,050.00) The invoiced amount includes all expenses associated with performance of the work, as outlined in the June 2023 PSA, including delivery of a turnkey emergency communications system comprising the following components:
• Design, procurement, and installation of three (3) speaker towers, at the locations identified in Exhibit A and referred to as the Fire Station Tower, (Crest Rd) East Gate Tower, and City Hall Tower.
• Configuration of intelligible voice and tone capability for each tower, designed to produce, at a minimum, the Sound Pressure Levels specified by the Original Equipment Manufacturer to support effective system coverage.
• Implementation of system management and activation functionality through an Advanced Communication Module (ACM), enabling secure remote access, control, and activation via a protected portal.
• Reasonable efforts to design the system to allow for integration with other regional alerting systems, recognizing that such integration may require additional scope and cost.

Staff will return at a later date to present the costs associated with installation of the Upper Blackwater siren pole, along with location and cost comparisons evaluating a single 50-foot pole versus two 30-foot poles for the Chesterfield and Ringbit areas.

Recommendation:

1. Staff recommends that the City Council review the information provided in this report and select one of the following options regarding the City’s outdoor emergency warning system contractual framework with HQE Systems.

Option 1 – City Funds the Equipment Costs of Additional Poles Option 2 – City Issues Formal Notice of Non-Performance Option 3 – Hybrid Approach (City Funds Equipment Costs with Credits/Offsets)

2. Payment of Outstanding Balance (If Applicable).If the City Council selects Option 1 or Option 3, direct staff to authorize payment of the remaining balance due under the original Professional Services Agreement (PSA) to compensate HQE for work already performed. If Option 2 is selected, no payment of the remaining balance would be authorized, and staff would proceed consistent with a notice of non-performance.

3. Acknowledge the RHCA approval of the Easement License for the Upper Blackwater siren site.

Attachments:

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None

Page 100 of 328 ends

Hi Christian,
Our team approves of the updated verbiage.

Thank you!
Respectfully,
Desiree Carr | Administrative Director
O 760.516.7056 |
27419 Via Industria, Temecula, CA 92590
www.HQESystems.com
On Fri, Jun 30, 2023 at 11:23 AM Christian Horvath <[email protected]> wrote:

Good morning,
As a result of the City Council’s motion the City Attorney is doing his best to thread this needle.

The 30 day change is not an issue.

Here is his attempt regarding the 70db based on your last revision. Please look at and let us know:
(i) three, 50 foot speaker towers (two directional and one omnidirectional) equipped with intelligible voice and tone capability at the three locations identified in Exhibit A and referred to as the First Station Tower, Easter Gate Tower and City Hall Tower which shall result in a system that, at a minimum, produces the specified Sound Pressure Level identified by the Original Equipment Manufacturer to ensure proper coverage. Outside of extraordinary circumstances on a property (e.g. loud generator, wall of 100’ trees covering the perimeter of a property, etc.), CONSULTANT warrants that the system is designed to reach 70 dB at each residence in the City.” With gratitude,
Christian Horvath
City Clerk / Executive Assistant to the City Manager
City of Rolling Hills
2 Portuguese Bend Road, Rolling Hills CA 90274
o: 310.377.1521 | c: 213.925.9490 | f: 310.377.7288
e: [email protected]
This is a transmission from the City of Rolling Hills. The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is

Page 101 of 328 ends

not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email and delete the message.

WARNING: Computer viruses can be transmitted by e-mail. The recipient should check this e-mail and any attachments for the presence of viruses. The CITY OF ROLLING HILLS accepts no liability for any damage caused by any virus transmitted by this e-mail.

From: Desiree Carr < >
Sent: Friday, June 30, 2023 8:53:14 AM
To: Christian Horvath <[email protected]>
Cc: Jamie Warner
Qais Alkurdi ; Alan Palermo
Subject: Re: RH agreement for your signature
Good Morning Christian,
Following up on the status of this contract. Please let me know if you need any assistance from our side.

Looking forward to hearing from you.

Thank you.

Respectfully,
Desiree Carr | Administrative Director
O 760.516.7056 |
27419 Via Industria, Temecula, CA 92590
www.HQESystems.com
On Wed, Jun 28, 2023 at 12:03 PM Desiree Carr wrote:

Hello Christian,
After reviewing the contract, we are requesting modifications on the following:
"CONSULTANT shall be reimbursed no earlier than (30 days) of submitting an invoice to CITY for SERVICES."
Our Thoughts: As written, the City could if it chooses to pay anytime in the future after the 30 days and it would be ideal for us to get paid with NET 30 Terms from invoice submission. Would it be feasible to change this to "CONSULTANT shall be reimbursed no later than (30 days) of submitting an invoice to City for SERVICES?
(i) three, 50 foot speaker towers (two directional and one omnidirectional) equipped with intelligible voice and tone capability at the three locations identified in Exhibit A and referred to as the First Station Tower, Easter Gate Tower and City Hall Tower which shall result in a system that, at a minimum, reaches 70 dB at each residence in the City

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Could we replace the added "70dB" wording to state the following industry standard: ".... at a minimum, the sirens are to produce the specified Sound Pressure Level specified by the Original Equipment Manufacturer to ensure proper coverage."
This ensures that if a resident is say "using a loud generator at their home or has built up 100' trees all the way around his property that we would never be able to get that 70dB at that home. You will be surprised but people will do funny stuff. So over the years, the industry has figured out that we can only promise to push out the sound that would provide the 70dB at the speakers. This way the City is not liable either in case a resident tries to state that they didn't have 70dB at their home.

Please let me know if you have any questions about the requested modifications.

Thank you.

Respectfully,
Desiree Carr | Administrative Director
O 760.516.7056 |
27419 Via Industria, Temecula, CA 92590
www.HQESystems.com
On Tue, Jun 27, 2023 at 3:46 PM Desiree Carr wrote:

Hi Christian,
Thank you for getting this back to me so quickly, our team will review the updated contract and get back to you.

Respectfully,
Desiree Carr | Administrative Director
O 760.516.7056 |
27419 Via Industria, Temecula, CA 92590
www.HQESystems.com
On Tue, Jun 27, 2023 at 2:50 PM Christian Horvath <[email protected]> wrote:

Desiree,

Page 103 of 328 ends

I have an updated agreement to include your proposed changes. The City Attorney highlighted a deal point the City Council changed during last night’s meeting and approval of the agreement regarding their desire to ensure 70 dB at each residence in the City.

Please let me know if any concerns or issues.

With gratitude,
Christian Horvath
City Clerk / Executive Assistant to the City Manager
City of Rolling Hills
2 Portuguese Bend Road, Rolling Hills CA 90274
o: 310.377.1521 | c: 213.925.9490 | f: 310.377.7288
e: [email protected]
This is a transmission from the City of Rolling Hills. The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email and delete the message.

From: Desiree Carr
Sent: Tuesday, June 27, 2023 9:59 AM
To: Christian Horvath <[email protected]>
Cc: Jamie Warner
Qais Alkurdi
Subject: Re: RH agreement for your signature

Page 104 of 328 ends

Hi Christian,
Thank you for the opportunity to provide life safety solutions to the City of Rolling Hills.

Our Team has reviewed the contract and we are requesting some revisions, please see the following:

Original: (iii) system that can be managed and activated via the VHF radios system with an option for cellular capability for City officials to remotely access, control and activate via a secure portal;
Rewrite: (iii) system that can be managed and activated via an Advanced Communication Module (ACM) to remotely access, control and activate via a secure portal.

Original: 4. METHOD OF PAYMENT Consultant shall be reimbursed no earlier than ninety (90) days of submitting an invoice to City for the SERVICES. CONSULTANT shall submit invoices electronically to the City Manager of the CITY and shall also provide a courtesy copy by U.S. Mail addressed to the CITY Manager of the CITY.

Rewrite: Original: 4. METHOD OF PAYMENT Consultant shall be reimbursed no earlier than (30 days) of submitting an invoice to City for SERVICES. CONSULTANT shall submit invoices per the approved project milestones. Milestones include 50% upon parts on order. 40% upon installation. Final 10% upon full test and acceptance by the CITY. CONSULTANT shall submit invoices electronically to the City Manager of the CITY and shall also provide a courtesy copy by U.S. Mail addressed to the City Manager of the CITY.

Original: (i) three, 50 foot directional speaker towers equipped with intelligible voice and tone capability at the three locations identified in Exhibit A and referred to as the First Station Tower, Easter Gate Tower and City Hall Tower

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Rewrite: (i) three, 50 foot speaker towers (two directional and one omnidirectional) equipped with intelligible voice and tone capability at the three locations identified in Exhibit A and referred to as the First Station Tower, Easter Gate Tower and City Hall Tower Will the City please review our requested updates and provide feedback for our team? We look forward to hearing from you.

Thank you.

Respectfully,
Desiree Carr | Administrative Director
O 760.516.7056 |
27419 Via Industria, Temecula, CA 92590
www.HQESystems.com
On Mon, Jun 26, 2023 at 1:30 PM Qais Alkurdi > wrote:

Christian,
Thank you for trusting HQE Systems, a Veteran Owned Small business with this project! We are grateful for the opportunity and look forward to serinvg you and the City of Rolling Hills!
I've included our contracts team to this email. They will review the contract and return it to you as soon as possible.

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Thanks again! Looking forward to working with you!
Respectfully,
Qais Alkurdi | CEO
O 760-516-7052 | M |
27419 Via Industria, Temecula, CA 92590
Veteran Owned Small Business
On Mon, Jun 26, 2023 at 1:01 PM Christian Horvath <[email protected]> wrote:

Qais,
Please see the attached. Let me know if any issues – and if not – please sign and send back a scan of the document.

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This is a transmission from the City of Rolling Hills. The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email and delete the message.

CONFIDENTIALITY NOTICE: The contents of this email message and any attachments are intended solely for the addressee(s) and may contain confidential and/or privileged information and may be legally protected from disclosure. If you are not the intended recipient of this message or their agent, or if this message has been addressed to you in error, please immediately alert the sender by reply email and then delete this message and any attachments. If you are not the intended recipient, you are hereby notified that any use, dissemination, copying, or storage of this message or its attachments is strictly prohibited. HQE Systems has performed a self-assessment in accordance with NIST SP 800-171 DoD Assessment Methodology and has submitted the results to the Supplier Performance Risk System (SPRS).

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City of Rolling Hills - Rolling Hills SPL Survey Results Date of Test: March 7, 2024
Test Conducted by: HQE Systems, Inc.

Prepared for: City Manager, City of Rolling Hills

1. Introduction
This report provides a comprehensive technical analysis of the Sound Pressure Level (SPL) performance validation test conducted by HQE Systems, Inc. on March 4, 2025, in the City of Rolling Hills. The purpose of this test was to:
● Validate the outdoor warning sirens' sound output against factory specifications under real-world conditions.
● Assess the influence of Rolling Hills’ complex terrain and environmental factors on sound propagation.
● Identify potential coverage variations due to terrain, vegetation, or placement constraints. ● Confirm that the siren system is fully operational and capable of delivering effective outdoor notification.

The post-installation SPL verification test was conducted from 8:30 AM to 11:00 AM, with three sirens activated sequentially to measure sound pressure levels at multiple locations across the city. This test was executed using precision-calibrated ANSI Type 1 Sound Level Meters, ensuring an accuracy range of ±0.7 dB. Each test location was carefully selected to capture variations due to elevation shifts, acoustic reflections, and environmental attenuation factors.

The results confirm that the HQE sirens are performing within factory specifications, achieving intended SPL outputs in all areas without significant system deficiencies. Any identified reductions in SPL are attributable to physical obstructions such as terrain elevations, dense vegetation, or installation placement adjustments requested by the City.

This quality control (QC) test serves as an engineering validation to verify system integrity and baseline performance before a final acceptance test. HQE’s analysis indicates that additional sound reinforcement in select locations may be considered to optimize performance in lower dB areas further, particularly where sirens were installed at reduced heights for aesthetic considerations.

As part of this review, HQE Systems will:
● Provide data-backed recommendations to maximize SPL uniformity. ● Offer guidance on potential adjustments to enhance propagation in terrain-affected areas. ● Support the city in selecting standardized Alarm Tones and messaging for resident familiarization.

HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 1

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2. Summary of Sound Pressure Level (SPL) Test Data and Resident Feedback
The SPL validation test included measurements at 13 distinct locations for the City Hall siren, with SPL readings recorded at varying distances and terrain features. The collected data reflects:
● SPL readings confirm that the City Hall siren is performing at factory-rated levels, averaging 75 dB across all locations. The maximum SPL recorded was 90 dB at 21 Saddleback Rd, demonstrating strong sound projection.
● The minimum SPL recorded was 67 dB at 11 Roadrunner Rd, where topographical interference caused minor attenuation.
● Terrain influences (elevated ridgelines, foliage, and valleys) create natural SPL deviations but do not indicate system malfunction.

The following table presents the detailed SPL measurements for the City Hall siren, including GPS coordinates, measured dB levels, and environmental observations.

City Hall Siren SPL Measurements
Test
Site
Latitude,
Longitude
Measured SPL
(dBC)
Distance from
Siren (m)
Environmental Observations
1-1 33.774844,
-118.349002
78 400 Direct line-of-sight, strong
propagation, minor tree reflections
2-1 33.771848,
-118.350611
81 650 Elevated terrain aids projection,
minor diffraction
3-1 33.769851,
-118.353111
74 900 Slight attenuation from mild terrain
obstruction
4-1 33.769203,
-118.354537
70 1100 Partial acoustic shadowing near the
ridgeline
5-1 33.769203,
-118.354537
76 1200 SPL retention remains strong
despite increased distance
6-1 33.772207,
-118.342013
90 300 Maximum SPL recorded; direct
line-of-sight location
7-1 33.769591,
-118.337001
76 800 Topography supports high SPL
retention
8-1 33.769638,
-118.335004
67 950 Lowest SPL reading due to
diffraction and minor valley
shielding
HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 2

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9-1 33.767046,
-118.342547
74 1100 The sound path follows an open
corridor with consistent projection
10-1 33.763666,
-118.340239
72 1200 Environmental noise influences
perception of siren audibility
11-1 33.760068,
-118.344962
74 1250 Retains expected propagation range
with minimal decay
12-1 33.778543,
-118.348422
71 1400 Gradual SPL reduction due to terrain
13-1 33.768532,
-118.347457
75 1300 Strong SPL presence, meets
expected thresholds
SPL Performance Metrics Value
Average SPL 75 dBC
Maximum SPL 90 dBC
Minimum SPL 67 dBC
Key Engineering Observations
● System Performance Validation:
○ The City Hall siren meets factory output expectations, demonstrating consistent SPL delivery within its intended coverage range.
○ Peak levels of 90 dB confirm that the siren is functioning at optimal sound power levels as per factory specifications.
● Influence of Environmental and Topographical Factors:
○ SPL variations between 67-90 dB are entirely attributable to natural terrain and not to any system malfunction.
○ Acoustic shadowing occurs in low-lying terrain depressions, which is expected based on the geographic modeling of Rolling Hills.
○ Elevated ridgelines at specific test sites support enhanced SPL projection, aligning with the anticipated sound propagation model.

HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 3

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● Confirmation of Outdoor Warning System Functionality:
○ 75% of surveyed residents reported clear siren audibility during the test. ○ Indoor attenuation was consistent with standard sound absorption principles for modern construction materials.
○ No performance issues were detected in areas where terrain does not obstruct propagation.

The City Hall siren demonstrated strong acoustic performance, achieving SPL levels of 70 dB at distances up to 1400 meters, confirming its ability to project sound effectively across its designated coverage area.

The average measured SPL was 75 dB, aligning with factory-rated performance expectations. The lowest recorded SPL of 67 dB occurred at the eastern end of Roadrunner Road (Site 3), where terrain elevation partially obstructed the direct sound path from the siren, resulting in localized attenuation. Notably, a measurement taken just 800 feet west of Site 3 registered at 76 dB, reinforcing the conclusion that terrain fluctuations—not system deficiencies—are the primary cause of minor SPL variations in this area.

One resident in this northeastern region provided feedback indicating that the alarm and message tones were perceived as too low. However, supplementary SPL readings taken at surrounding sites (1, 2, and 4) consistently measured above 74 dB, demonstrating that the system is producing expected sound levels across the broader area.

The East Gate siren demonstrated strong performance, with an average SPL of 74 dB across all tested locations. The highest recorded SPL was 90 dB at 92 Crest Rd E (Site 10-1), indicating optimal sound projection in unobstructed areas. The lowest SPL reading of 66 dB occurred at Site 9 (5-9 Eastfield Dr), which is located within a low valley approximately 1400 meters from the East Gate siren. This topographical shielding naturally attenuates sound propagation, which explains the localized reduction in SPL.

A resident at 1 Hummingbird Lane reported that the siren was not audible indoors. However, on-site outdoor measurements at Site 9 confirmed an SPL of 66 dB, with both the siren tone and voice messages remaining clearly detectable outdoors. This aligns with expectations, as standard outdoor warning systems are optimized for external notification, with indoor audibility naturally affected by building insulation, window materials, and ambient indoor noise.

Additional block captain feedback supported the measurement data, with a positive report from the Junction of Caballero and Maverick, where residents described the siren level as "very good" outdoors.

The SPL measurement at nearby Site 9-1 (1 Caballeros Rd) recorded a level of 70 dB, confirming consistent outdoor coverage in that vicinity.

Given the unique topography of the Eastfield Gate area, where valley shielding results in localized SPL reductions, HQE recommends exploring potential system expansion options to reinforce coverage if approved by the City. This could include additional siren placement or directional speaker deployment to mitigate terrain-based attenuation effects.

HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 4

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East Gate Siren SPL Measurements
Test Site Latitude,
Longitude
Measured SPL
(dBC)
Dominant
Siren
Approximate Address
Test 1 - Site
9-1

33.751746,
-118.342862
70 East Gate 1 Caballeros Rd, Rolling Hills,
CA 90274
Test 1 - Site
10-1

33.748002,
-118.337083
90 East Gate 92 Crest Rd E, Rolling Hills,
CA 90274
Test 1 - Site
11-1

33.750313,
-118.338977
72 East Gate 79 Eastfield Dr, Rolling Hills,
CA 90274
Test 1 - Site
12-1

33.751788,
-118.338241
76 East Gate 67 Eastfield Dr, Rolling Hills,
CA 90274
Test 1 - Site
13-1

33.75388,
-118.33724
70 East Gate 57 Eastfield Dr, Rolling Hills,
CA 90274
Test 2 - Site
9 33.759779,
-118.332747
66 East Gate 5-9 Eastfield Dr, Rolling Hills,
CA 90274
Test 2 - Site
10 33.754752,
-118.335069
72 East Gate 37 Eastfield Dr, Rolling Hills,
CA 90274
SPL Performance Metrics Value
Average SPL 74 dBC
Maximum SPL 90 dBC
Minimum SPL 66 dBC
Technical Analysis of East Gate Siren Performance
The East Gate siren exhibited strong performance, delivering an average SPL of 74 dB across all measured locations. The system reached its maximum SPL of 90 dB at 92 Crest Rd E (Site 10-1), demonstrating excellent sound propagation under optimal conditions.

The lowest recorded SPL of 66 dB occurred at Site 9 (5-9 Eastfield Dr.), which is located in a low valley approximately 1400 meters from the East Gate siren. This topographical shielding naturally attenuates sound propagation due to terrain-induced diffraction and absorption effects. Despite this, outdoor sound levels remained within the expected functional range.

One resident at 1 Hummingbird Lane reported that the siren was not audible indoors. However, on-site outdoor SPL readings at Site 9 confirmed an SPL of 66 dB, with both siren tones and voice messages HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 5

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clearly perceptible in an open-air environment. This aligns with established acoustic propagation principles, as outdoor warning sirens are optimized for external coverage, and indoor attenuation is influenced by factors such as building insulation, window thickness, and ambient indoor noise levels.

Block Captain Feedback & Corroborating SPL Readings
Independent feedback from block captains in the test region corroborates the SPL data findings.

Residents reported that the siren levels were “very good” outdoors at the Junction of Caballero and Maverick. This aligns with SPL readings taken at Site 9-1 (1 Caballeros Rd), where the measured level was 70 dB.

Fire Station Siren SPL Measurements
Test Site Latitude,
Longitude
Measured SPL
(dBC)
Dominant Siren Approximate Address
Test 2 -
Site 6

33.763768,
-118.349343
67 City Hall Portuguese Bend Rd, Rolling
Hills, CA 90274
Test 2 -
Site 8

33.758015,
-118.340928
67 Fire Station 11 Bowie Rd, Rolling Hills, CA
90274
Test 1 -
Site 6-1

33.758062,
-118.349074
67 Fire Station 42 Portuguese Bend Rd, Rolling
Hills, CA 90274
Test 1 -
Site 7-1

33.757146,
-118.354258
91 Fire Station 12 Crest Rd W, Rolling Hills, CA
90274
Test 1 -
Site 8-1

33.755427,
-118.347531
53 Fire Station 2 Georgeff Rd, Rolling Hills, CA
90274
Test 2 -
Site 14

33.764826,
-118.356489
67 Fire Station 98-76 Buggy Whip Dr, Rolling
Hills, CA 90274
Test 2 -
Site 15

33.765718,
-118.351752
67 Fire Station 18-16 Upper Blackwater Canyon
Rd, Rolling Hills, CA 90274
Test 2 -
Site 17

33.748354,
-118.345176
65 Fire Station 10-4 Southfield Dr, Rolling Hills,
CA 90274
Test 2 -
Site 18

33.748128,
-118.352508
67 Fire Station 70 Portuguese Bend Rd, Rolling
Hills, CA 90274
Test 2 -
Site 19

33.751844,
-118.350305
59 Fire Station 56 Portuguese Bend Rd, Rolling
Hills, CA 90274
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Test 2 -
Site 11

33.762097,
-118.365369
73 Fire Station (New
Speaker)
52-48 Crest Rd W, Rolling Hills,
CA 90274
Test 2 -
Site 12

33.76466,
-118.35887
73 Fire Station (New
Speaker)
Rolling Hills, California
Test 2 -
Site 13

33.766401,
-118.364148
66 Fire Station (New
Speaker)
35-1 Morgan Ln, Rolling Hills, CA
90274
SPL Performance Metrics Value
Average SPL 68 dBC
Maximum SPL 91 dBC
Minimum SPL 53 dBC
Technical Analysis of Fire Station Siren Performance
The Fire Station siren exhibited expected sound propagation, given its adjusted placement. The average SPL across all test locations was 68 dB, with the highest recorded level reaching 91 dB at Site 7-1 (12 Crest Rd W). The lowest SPL was recorded at Site 8-1 (2 Georgeff Rd), measuring 53 dB, attributed to terrain obstructions and installation height constraints.

The original installation plan positioned the siren on the shoulder of Crest Road at a height designed to optimize acoustic coverage. However, at the City’s request, the siren pole was lowered by approximately 20 feet to reduce its visual impact, which negatively affected its ability to project sound effectively into the southern portion of the coverage area.

This height reduction and tree cover have resulted in attenuation effects, particularly in the southern ‘Flying Triangle’ area. The SPL results demonstrate that the siren’s sound waves are blocked by surrounding terrain and vegetation, preventing the system's full power from reaching downhill locations.

A new speaker was installed on the siren pole and oriented along Crest Road to the west, improving coverage in that direction. Sites 11 and 12 (52-48 Crest Rd W and Rolling Hills, CA) both recorded 73 dB, confirming that the new speaker is effectively reinforcing sound propagation along the roadway.

Resident Feedback and Corroboration with SPL Measurements ● A block captain at 19 Southfield Dr. reported that the siren was faint in their area, aligning with the measured SPL of 65 dB at Site 17.
● A resident at 33 Portuguese Bend Rd. noted that the siren became “clearer and easier to hear” when they opened a sliding glass door, confirming that indoor sound attenuation is a contributing factor.

HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 7

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Key Findings and Technical Analysis

1. Resident Survey Findings
A total of 80 residents participated in the Test Day survey, providing valuable insight into the perceived audibility and effectiveness of the siren system. Key findings include:
● 75% (61 residents) confirmed hearing the alarms and messages during the test. This demonstrates that the siren system is effectively reaching a majority of the community. ● 71% of respondents were indoors at the time of testing, which aligns with known attenuation effects for outdoor warning sirens when heard from inside a structure. ● Only 32% of residents reported having received or read the Outdoor Warning Sirens FAQs, while 68% were unaware of their existence.
● 56% of respondents requested a copy of the FAQs, indicating a need for improved resident education and distribution of emergency alert information. ● 31 residents expressed willingness to support system expansion on their property, reflecting a community-driven interest in improving coverage in lower dB areas.

These findings confirm that while the current siren system is functioning effectively outdoors, resident education remains a critical component of overall emergency preparedness.

2. Topographical Impact on Sound Propagation
The complex terrain of Rolling Hills presents natural acoustic challenges, particularly in regions where elevation variance and terrain shadowing impact sound wave propagation. The following areas were identified as having SPL reductions due to natural obstructions:
● The southeastern corner of Rolling Hills at the end of Roadrunner Rd. – This area experiences partial acoustic shadowing, leading to lower measured SPL levels. ● At the easternmost end of Eastfield Drive, similar sound attenuation effects were observed due to terrain interference.
● North and south of the Fire Station siren – SPL measurements were 3 to 5 dB lower than expected, directly correlated to the siren’s adjusted placement, which reduced its overall height and subjected its sound path to obstructions from hills and tree cover.

These findings do not indicate system deficiencies, but rather highlight the expected acoustic behavior in areas where terrain diffraction and absorption naturally reduce sound energy.

3. Indoor Attenuation and Building Characteristics
As anticipated, indoor audibility was lower than outdoor levels, particularly in areas where the siren system registered SPL readings between 60-68 dB outside. ● Indoor attenuation is consistent with expected values; materials such as modern insulation, double-pane windows, and structural barriers absorb and reduce external noise penetration. ● Ambient indoor noise further masked the siren’s tones, meaning that background sounds inside homes (HVAC systems, household activities, and appliances) contributed to reduced perception of the alert tones in some locations.

HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 8

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These observations align with industry expectations for outdoor warning systems, which are engineered to prioritize external notification rather than indoor coverage.

4. Ambient Community Noise Levels
Additional ambient noise sources within Rolling Hills were observed to contribute to situational sound masking in specific test locations.
● High-traffic and work-related noise levels (e.g., landscaping equipment, leaf blowers, and chainsaws) measured between 85-90 dB in some locations, temporarily masking siren tones for individuals positioned within close proximity to the noise sources. ● As distance from the noise sources increased, siren tones became clearly perceptible again. The sirens remained distinguishable and effective in areas where background noise levels were measured between 60-70 dB.

This confirms that while short-term noise interference may occur in isolated conditions, the siren system retains a strong outdoor presence across the majority of its coverage area.

Recommendations for Enhanced Coverage
To further optimize system performance and ensure maximum reach, HQE recommends the following enhancements:

1. Strategic System Expansion
○ Additional sirens or directional speaker reinforcement could be installed in terrain-affected “shadow zones” to support sound propagation in lower dB areas further. ○ Mobile speaker testing should be conducted to identify the most effective expansion points.

2. Vegetation Management for Unobstructed Sound Paths
○ Tree pruning and vegetation clearing in key obstruction zones will help reduce sound absorption and improve propagation efficiency near impacted siren locations.

3. Implementation of Parallel Alerting Channels
○ Expanding HQE’s SiSA platform to integrate SMS notifications, SAFE network devices, and additional communication pathways will ensure that residents in lower dB areas receive critical emergency alerts through multiple channels.

4. Resident Education & Monthly Testing Awareness
○ An enhanced public education campaign should be implemented to ensure that residents understand:
■ The outdoor design intent of the system.
■ Expected variations in indoor audibility.
■ Proper emergency response actions when sirens are activated. ○ Monthly testing should include pre-announced siren drills to increase resident awareness and familiarity with the system.

HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 9

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5. Publication and Distribution of FAQs
○ Since 68% of residents were unaware of the siren system’s FAQs, HQE recommends a wider distribution strategy, including digital access via the City’s website, social media, and printed copies available at community centers.

Conclusion
March 4, 2025, siren system test confirms that HQE’s Outdoor Warning Siren System is fully operational and performing within factory-rated sound output expectations. The system successfully provides broad outdoor coverage across Rolling Hills, with measured SPL readings aligning with the designed performance standards.

The only identified SPL variations are directly correlated to natural terrain influences and the city-directed installation adjustments, particularly at the Fire Station siren, where aesthetic placement constraints reduced the overall height of the siren pole, resulting in localized sound attenuation.

Despite these environmental influences, the siren system remains a highly effective outdoor emergency notification solution. The test data and resident survey feedback confirm the following:
● 75% of residents heard the siren system during the test, reinforcing its effectiveness as an outdoor alerting mechanism.
● All SPL reductions align with known acoustic behaviors influenced by terrain, building materials, and vegetation rather than system malfunction.
● Residents have demonstrated interest in system expansion, with 31 willing to support additional siren installations on their properties to enhance coverage.

To further refine and optimize coverage, HQE has outlined technical recommendations, including strategic system expansion, vegetation management, multi-channel alerting, and expanded resident education initiatives. These enhancements, if implemented, will ensure that the Rolling Hills siren system continues to provide maximum safety and awareness for the community.

HQE remains fully committed to the City of Rolling Hills in delivering a world-class outdoor warning system and is actively preparing to conduct further acoustic evaluations and expansion studies to ensure that all residents are optimally covered in future activation scenarios.

HQE Systems, Inc. | A California Minority Owned - Disabled Veteran Business Enterprise 10

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2024 Community SAFE Grant (CSG) Award
Presented by HQE Systems, Inc.
“Thank You For Supporting The Veteran Community!”
Dear Members of the City Council and Leadership of Rolling Hills, On behalf of HQE Systems, Inc., we are honored to present the City of Rolling Hills with the 2024 Community SAFE Grant (CSG). This grant represents our commitment as a veteran-owned organization to strengthening local life-saving capabilities for communities that exemplify unwavering support for U.S. veterans. The residents, Block Captains, City management, and leadership of Rolling Hills have been steadfast allies to HQE Systems, a California Disabled Veteran Business Enterprise (DVBE). Your collective efforts to build a safer, stronger community inspire us, and we are excited to partner with you in advancing public safety.

The Community SAFE Grant is an initiative created by the veterans of HQE Systems. Each year, we select one community to receive cutting-edge technology aimed at enhancing life-saving capabilities and resilience. For 2024, we are privileged to award this grant to Rolling Hills, a city that has stood out for its remarkable dedication to its residents and veterans alike.

What the CSG Includes:

1. SAFE Network System
The cornerstone of the CSG package is the installation of the SAFE Network System, a revolutionary public safety communications network designed to operate independently of cellular or AC power. This system ensures uninterrupted communication between the City’s leadership, emergency management team, and residents, even during catastrophic events when traditional communication methods fail.

The SAFE Network operates through a decentralized, self-sustaining framework that uses advanced radio frequency technology to maintain reliable communication. It is specifically designed to provide seamless connectivity during disasters, empowering emergency responders and city leaders to make critical decisions and keep residents informed when it matters most. ● HQE’s Equipment Cost: $9,278.52
● HQE’s Total Cost (including labor and other direct costs): $21,374.35 ● Open Market Value: Over $30,000+
The SAFE Network provides unmatched reliability and resilience, delivering $30,000+ in public safety communication technology to Rolling Hills—at no cost to the City.

2. Indoor SAFE Units for Homes
As part of the CSG, HQE is offering at-cost pricing for up to 700 Indoor SAFE Units, allowing residents to benefit from this advanced safety technology at significantly reduced costs.

HQE Systems, Inc. | A California Minority Owned, Disabled Veteran Business Advanced Providing Life Saving Technology.

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SAFE Units are compact, easy-to-install devices designed to provide emergency alerts and critical information directly to residents’ homes. These units serve as a vital link in the communication chain, ensuring that even during widespread outages or disasters, households remain informed and connected to city leadership and emergency services.
● MSRP Per Unit: $142.95 (excluding shipping, handling, and tax) ● At-Cost Price Per Unit: $92.84 (excluding shipping, handling, and tax) ● Potential Savings for the Community: $35,077 (if all 700 units are purchased) These units empower families with vital communication tools during emergencies, ensuring no household is left unprotected.

Total Grant Value
The Community SAFE Grant delivers a total value of over $65,000 in public safety enhancements:
● $30,000 SAFE Network System at no cost.
● $35,077 in discounts for Indoor SAFE Units for residents.

Why HQE Selected Rolling Hills
HQE Systems’ mission is deeply rooted in supporting communities that support veterans. Rolling Hills’ leadership and residents have continually demonstrated an exceptional commitment to HQE Systems and our veteran workforce. Your city’s values align with our vision to create safer, more resilient communities. By awarding the Community SAFE Grant to Rolling Hills, we are not only expressing our gratitude but also investing in the safety and well-being of a community that inspires us.

Our Commitment to Your Community
As a veteran-owned company, HQE Systems believes in going beyond business to make a meaningful impact. The Community SAFE Grant is a testament to this belief. We are excited to see how this partnership will enhance public safety in Rolling Hills and set a precedent for community resilience.

Thank you for the opportunity to serve your community. We look forward to working together to implement these life-saving technologies.

Very Respectfully,
Qais Alkurdi
CEO, HQE Systems, Inc.

Disabled - Retired Veteran
HQE Systems, Inc. | A California Minority Owned, Disabled Veteran Business Advanced Providing Life Saving Technology.

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2026 Community SAFE Grant (CSG) Award
Presented by HQE Systems, Inc.
“Thank You For Supporting The Veteran Community!”
Dear Members of the City Council and Leadership of Rolling Hills, On behalf of HQE Systems, Inc., we are honored to present the City of Rolling Hills with the 2026 Community SAFE Grant (CSG). This grant represents our commitment as a veteran-owned organization to strengthening local life-saving capabilities for communities that exemplify unwavering support for U.S. veterans. The residents, Block Captains, City management, and leadership of Rolling Hills have been steadfast allies to HQE Systems, a California Disabled Veteran Business Enterprise (DVBE). Your collective efforts to build a safer, stronger community inspire us, and we are excited to partner with you in advancing public safety.

The Community SAFE Grant is an initiative created by the veterans of HQE Systems. Each year, we select one community to receive cutting-edge technology aimed at enhancing life-saving capabilities and resilience. For 2026, we are privileged to award this grant to Rolling Hills, a city that has stood out for its remarkable dedication to its residents and veterans alike.

What the CSG Includes:

2. Indoor SAFE Units for Homes
As part of the CSG, HQE is offering at-cost pricing for up to 2100 Indoor SAFE Units, allowing residents to benefit from this advanced safety technology at significantly reduced costs.

HQE Systems, Inc. | A California Minority Owned, Disabled Veteran Business Advanced Providing Life Saving Technology.

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SAFE Units are compact, easy-to-install devices designed to provide emergency alerts and critical information directly to residents’ homes. These units serve as a vital link in the communication chain, ensuring that even during widespread outages or disasters, households remain informed and connected to city leadership and emergency services.
● MSRP Per Unit: $142.95 (excluding shipping, handling, and tax) ● At-Cost Price Per Unit: $92.84 (excluding shipping, handling, and tax) ● Potential Savings for the Community: $105,231.00 (if all 2100 units are purchased) These units empower families with vital communication tools during emergencies, ensuring no household is left unprotected.

Total Grant Value
The Community SAFE Grant delivers a total value of over $135,000.00 in public safety enhancements:
● $30,000 SAFE Network System at no cost.
● $ 105,231.00 in discounts for Indoor SAFE Units for residents.

Thank you for the opportunity to serve your community. We look forward to working together to implement these life-saving technologies.

Very Respectfully,
Qais Alkurdi
CEO, HQE Systems, Inc.

Disabled - Retired Veteran
HQE Systems, Inc. | A California Minority Owned, Disabled Veteran Business Advanced Providing Life Saving Technology.

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ESTIMATE FOR:

City of Rolling Hills
Siren Options
(Estimate: 006cw00000GrmTW)
Date Submitted: January 13, 2026
Proposal Prepared For: Proposal Approved By:

City of Rolling Hills HQE Systems Inc.
2 Portuguese Bend Rd 27348 Via Industria
Rolling Hills, CA, 9027 Temecula, CA 92590
POC: Ms. Karina Banales POC: Mr. Qais Alkurdi
Title: City Manager Title: Chief Executive Officer
Email: [email protected] Email: [email protected] Tel: (310) 377-1521 Tel: (800) 967-3036 X1102
This proposal contains trade secrets and confidential business or financial information exempt from disclosure under the Freedom of Information Act. This proposal includes data that shall not be disclosed outside the Government and shall not be duplicated, used, or disclosed—in whole or in part—for any purpose other than to evaluate this proposal. If, however, a contract is awarded to this offeror as a result of—or in connection with—the submission of this data, the Government shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Government’s right to use the information contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained in this proposal and all attachments. All product names, logos, and brands are the property of their respective owners. All company, product, and service names used in this proposal are for identification purposes only. Using these names, logos, and brands do not imply endorsement.

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Summary
HQE Systems, Inc., a Service Disabled Veteran Owned Small Business (SDVOSB), is pleased to provide the below cost for outdoor emergency sirens at Upper Blackwater, Chesterfield, and Ringbit Road. Offer is valid for 90 days. This estimate is in response to the customer’s request for:
● Upper Blackwater Fiscal Impacts
○ Cost breakdown including HQE and Rolling Hills responsibilities ● Chesterfield Fiscal Impacts
○ Cost breakdown including HQE and Rolling Hills responsibilities ○ Cost breakdown, including single 50' siren pole in Chesterfield cul-de-sac vs cost of two 30' siren poles (Chesterfield cul-de-sac and Chuckwagon/Bowie Side Easement)
● Ringbit / Flying Triangle Fiscal Impacts
○ Cost breakdown including HQE and RH responsibilities
○ Cost breakdown including cost of single 50' siren pole on or near Ringbit cul-de-sac vs cost of two 30' siren poles (Ringbit and Flying Triangle) Please submit any resulting purchase order or contract to [email protected] HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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Upper Blackwater - One (1) 50ft LAS-4-120
# Budget Summary Estimate
1 Total Labor (HQE Responsibility) $ 21,875.71
2 Other Direct Costs (HQE Responsibility) $ 23,398.54
3 Equipment (Rolling Hills Responsibility) $ 48,335.96
Total Estimate $ 93,610.21
# Labor Category Hours Rate Total
1 Program Management 13 $ 120.87 $ 1,571.31
2 Project Management 30 $ 102.35 $ 3,070.50
3 Field Engineer 113 $ 72.24 $ 8,163.12
4 Electronics Technician III 73 $ 63.86 $ 4,661.78
5 Electronics Technician II 73 $ 57.09 $ 4,167.57
6 Trainer (Preparation & Instructions) 1 $ 51.73 $ 51.73 7 Autocad/Drafter 2 $ 94.85 $ 189.70
Total Hours 305 Total Labor $ 21,875.71
# Travel & ODC's QTY Unit Price Total
1 Travel, including lodging, flights & meals 1 $ 5,561.50 $ 5,561.50 2 Rental Vehicles & Gas 1 $ 1,674.13 $ 1,674.13
3 Shipping 1 $ 1,699.57 $ 1,699.57
4 Bucket Truck, Daily 7 $ 509.62 $ 3,567.34
5 Line Truck, Daily 3 $ 3,632.00 $ 10,896.00
Total ODC's $ 23,398.54
# Part # Equipment Descriptions QTY Unit Price Total
1 SiRcom: LAS-4-120
SLA, Digital, 4 LAS-120 Line Arrays,
PA-11D, Complete Set with 50' Class II
Wood Pole
1 $ 44,469.08 $ 44,469.08
2 HQE-Wood-Pole Direct Burial Wood Pole, 50' 1 $ 3,866.88 $ 3,866.88 Total Equipment $ 48,335.96
HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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Chesterfield cul-de-sac and Chuckwagon/Bowie Side Easement Option 1 - One (1) 50ft LAS-4-120
# Budget Summary Estimate
1 Total Labor (HQE Responsibility) $ 21,875.71
2 Other Direct Costs (HQE Responsibility) $ 23,398.54
3 Equipment (Rolling Hills Responsibility) $ 48,335.96
Total Estimate $ 93,610.21
# Labor Category Hours Rate Total
1 Program Management 13 $ 120.87 $ 1,571.31
2 Project Management 30 $ 102.35 $ 3,070.50
3 Field Engineer 113 $ 72.24 $ 8,163.12
4 Electronics Technician III 73 $ 63.86 $ 4,661.78
5 Electronics Technician II 73 $ 57.09 $ 4,167.57
6 Trainer (Preparation & Instructions) 1 $ 51.73 $ 51.73 7 Autocad/Drafter 2 $ 94.85 $ 189.70
Total Hours 305 Total Labor $ 21,875.71
# Travel & ODC's QTY Unit Price Total
1 Travel, including lodging, flights & meals 1 $ 5,561.50 $ 5,561.50 2 Rental Vehicles & Gas 1 $ 1,674.13 $ 1,674.13
3 Shipping 1 $ 1,699.57 $ 1,699.57
4 Bucket Truck, Daily 7 $ 509.62 $ 3,567.34
5 Line Truck, Daily 3 $ 3,632.00 $ 10,896.00
Total ODC's $ 23,398.54
# Part # Equipment Descriptions QTY Unit Price Total
1 SiRcom: LAS-4-120
SLA, Digital, 4 LAS-120 Line Arrays,
PA-11D, Complete Set with 50' Class II
Wood Pole
1 $ 44,469.08 $ 44,469.08
2 HQE-Wood-Pole Direct Burial Wood Pole, 50' 1 $ 3,866.88 $ 3,866.88 Total Equipment $ 48,335.96
HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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Option 2 - Two (2) 30ft LAS-4-060
# Budget Summary Estimate
1 Total Labor (HQE Responsibility) $ 24,565.49
2 Other Direct Costs (HQE Responsibility) $ 19,856.83
3 Equipment (Rolling Hills Responsibility) $ 61,464.00
Total Estimate $ 105,886.32
# Labor Category Hours Rate Total
1 Program Management 8 $ 120.87 $ 966.96
2 Project Management 28 $ 102.35 $ 2,865.80
3 Field Engineer 119 $ 72.24 $ 8,596.56
4 Electronics Technician III 96 $ 63.86 $ 6,130.56
5 Electronics Technician II 96 $ 57.09 $ 5,480.64
6 Estimator 2 $ 46.92 $ 93.84
Total Hours 354 Total Labor $ 24,565.49
# Travel & ODC's QTY Unit Price Total
1 Travel, including lodging, flights & meals 1 $ 6,197.10 $ 6,197.10 2 Rental Vehicles & Gas 1 $ 1,855.73 $ 1,855.73
3 Shipping 1 $ 908.00 $ 908.00
4 Bucket Truck, Daily 10 $ 340.50 $ 3,405.00
5 Line Truck, Daily 3 $ 2,497.00 $ 7,491.00
Total ODC's $ 19,856.83
# Part # Equipment Descriptions QTY Unit Price Total
1 SiRcom: LAS-4-060
SLA, Digital, 4 LAS-60 Line Arrays,
PA-11D, Complete Set
2 $ 28,273.44 $ 56,546.88
2 HQE-Wood-Pole Direct Burial Wood Pole, 30' 2 $ 2,458.56 $ 4,917.12 Total Equipment $ 61,464.00
HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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Ringbit / Flying Triangle
Option 1 - One (1) 50ft LAS-4-120
# Budget Summary Estimate
1 Total Labor (HQE Responsibility) $ 21,875.71
2 Other Direct Costs (HQE Responsibility) $ 23,398.54
3 Equipment (Rolling Hills Responsibility) $ 48,335.96
Total Estimate $ 93,610.21
# Labor Category Hours Rate Total
1 Program Management 13 $ 120.87 $ 1,571.31
2 Project Management 30 $ 102.35 $ 3,070.50
3 Field Engineer 113 $ 72.24 $ 8,163.12
4 Electronics Technician III 73 $ 63.86 $ 4,661.78
5 Electronics Technician II 73 $ 57.09 $ 4,167.57
6 Trainer (Preparation & Instructions) 1 $ 51.73 $ 51.73 7 Autocad/Drafter 2 $ 94.85 $ 189.70
Total Hours 305 Total Labor $ 21,875.71
# Travel & ODC's QTY Unit Price Total
1 Travel, including lodging, flights & meals 1 $ 5,561.50 $ 5,561.50 2 Rental Vehicles & Gas 1 $ 1,674.13 $ 1,674.13
3 Shipping 1 $ 1,699.57 $ 1,699.57
4 Bucket Truck, Daily 7 $ 509.62 $ 3,567.34
5 Line Truck, Daily 3 $ 3,632.00 $ 10,896.00
Total ODC's $ 23,398.54
# Part # Equipment Descriptions QTY Unit Price Total
1 SiRcom: LAS-4-120
SLA, Digital, 4 LAS-120 Line Arrays,
PA-11D, Complete Set with 50' Class II
Wood Pole
1 $ 44,469.08 $ 44,469.08
2 HQE-Wood-Pole Direct Burial Wood Pole, 50' 1 $ 3,866.88 $ 3,866.88 Total Equipment $ 48,335.96
HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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End of Estimate
“Our goal at HQE is to continue to serve our veterans through our ‘Hire Veterans Policy HQE-2015-2025’.

We appreciate our current and past customers who have helped us meet our goals of hiring veterans throughout the years. Your support in HQE is directly impacting the support of our incredible veterans.

Thank you for your consideration and support of Minority Business Enterprise (MBE), Disadvantaged Business Enterprise (DBE), and Service Disabled Veteran Owned Small Business (SDVOSB)!” Thank You from the team of HQE Systems Inc.

Qais Alkurdi
CEO, Disabled Veteran / Retired
HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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From: Bill and Tannia
To: Bea Dieringer; Jim Black; Patrick Wilson; Leah Mirsch; Jeff Pieper; Karina Banales; Christian Horvath; Samantha Crew Cc: Bill and Tannia Dilfer
Subject: Comments on proposed Siren Pole on Chesterfield Date: Monday, February 9, 2026 4:55:54 AM
To Rolling Hills City Council and Staff
We would like to voice and register our opposition to the 50 - foot siren pole at the Chesterfield cul-de-sac and would like to address several aspects of proposed siren project. Unfortunately we are traveling and will not be able to attend this evenings council meeting.

1. Living at 25 Chuckwagon Rd, our entire back yard and the back of our house looks directly at this pole and siren, sticking up in and floating in the sky.

There is no way to camouflage the siren, and it permanently damages our open view and significantly affects our property value and enjoyment of our back yard.

I have
attached a couple of pictures as reference.We understand the power poles in the city, but there is the opportunity in the future to move the power lines underground which is the right approach. The siren will be a permanent.

2. There are potentially other locations which would provide similar coverage and do not affect the views or enjoyment of one’s back yard.We were told at a previous meeting that we would be given access to the data used to determine that this location was the only viable location for the tower, but that information or access to the information has not been provided, so I assume the testing has not been done or there are other locations but the contractor wants to move forward with this location because of the sunk costs already incurred in this location.

3. I believe that although not desirable, the option of putting several 30 - foot poles might be more acceptable to the neighborhood while still providing the desired coverage.

This would require the site selection process to be renewed but would be a better investment for the city.

4. It is clear that a serious effort was made in the placement of the initial 3 siren poles to avoid any disruption of view and insure they were in “Industrial” sections of the city and somewhat hidden.

These were efforts that went along with the
general philosophy of the city and its residents that preserving the character and beauty of our city and everyone’s views are important.

However, now that there needs to be
additional sirens, those goals and that philosophy seems to be gone and has been replaced by expediency and potential disregard for the affect these additional sirens have on the local neighbors.

5. One must ask if that over the years of the planning and execution of this siren system; hasn’t the technologies changed such that there are better and more effective and longer-term ways to communicate emergency situations? I believe
the vendor has a radio broadcast system they were going to start to install and test in November which would provide a much better solution.How have the tests gone and have the results been published?

6. Also, perhaps a better use of the cities funding of the siren project would be to subsidize the installation of additional cell phone towers so that cell phone alerts and alarms could replace the need for the sirens.

We all get alerts all the
time and the reality is that everyone today and looking into the future will continue to

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have cell phones near them.

This investment would give us the ability to implement
even more specific alerts and grow the system into the future.Plus, the additional cell coverage would be a significant benefit and value add to all the residents and a huge safety improvement for the city.

7. Siren systems might have their place in some areas, but they do not seem well suited for our city and the normal location of the residents.In areas such as beach communities, there can be large amount of visitors on the beach from all over the world and most likely significantly more people outside their homes than within their homes.

So, a siren system seems to make sense.Also, while at the beach there is a likelihood that people may not have their cell phones available.

However, in Rolling
Hills this is not the case.

We do not have large number of outdoor visitors and the visitors we do have are typically engaged in what is going on around the area and would be alerted by other individuals leaving the area of a pending or potential event worth preparing to leave.

8. One final question, when are we as residents most vulnerable to a disastrous event?I would suggest at night, when we are either asleep, engaged with our computers or watching TV.

The siren system does not help in these situations and
residents would need to be alerted by other residents of an event and what actions to take.These factors drive the value of the radio system and/or the improvement in the cell towers.

Thank you for considering how this proposed solution personally affects us, our views, enjoyment of our property and value of our property as well as our general thoughts on the siren solution as an option.

Sincerely
William and Tannia Dilfer
25 Chuckwagon Rd

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Item: 13.A.

Meeting Date: 2/9/2026
To: City Council
From: Christian Horvath, Assistant to the City Manager / City Clerk Thru: Karina Bañales, City Manager
Subject: Consideration of taking a position on Supervisor Mitchell's proposed temporary fiveyear 1/2 cent sales tax measure to replace the state and federal funds lost due to the passage of H.R. 1
Background:

Supervisor Holly J. Mitchell is seeking a two-thirds vote of the Los Angeles County Board of Supervisors (BOS) to place a temporary ½ cent sales tax measure on the June 2, 2026, primary ballot that would remain in effect until October 2031. The item is scheduled for consideration by the BOS on February 10, 2026.

The motion calls for a general sales tax (requiring just a majority vote to be enacted by the voters) and includes intent language to use the estimated $1 billion in annual revenues generated from this tax for health and social services to replace the state and federal funds lost due to the passage of H.R. 1, also known as the “One Big Beautiful Bill Act.” However, this intent language is non-binding.

These funds would actually go into the County’s general fund and the County would be allowed to use them for any purpose.

There is a method by which sales tax revenue could be legally earmarked for this specified use, but such a ballot measure would require a two-thirds vote of the electorate. This sales tax would not be likely to succeed if this higher margin is required at the ballot but is expected to succeed if a simple majority vote is required.

The sales tax would preempt cities who have the ability and incentive to do so, from passing their own sales tax measures. Consequently, the County is concurrently working on legislation in Sacramento that would exempt this proposed sales tax from the current state cap on local sales taxes, but that bill is not yet in print.

The Cal Cities Los Angeles County Division Board met on January 28, 2026, and is closely monitoring this issue, as well as the California Contract Cities Association (Attachment C). Both are encouraging city officials to reach out to the respective County Supervisors with their feedback on this proposal.

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A summary of Supervisor Mitchell’s motion is provided below, and the full motion and resolution are included as Attachment A. In addition, to provide a broader fiscal and legislative context, an Overview of Major Impacts of H.R. 1 prepared by the Legislative Analyst’s Office (LAO) is included as Attachment B. The LAO presentation summarizes significant statewide impacts to health care, food assistance, higher education, tax policy, and clean energy programs, and identifies areas where costs may shift to states and local governments.

Supervisor Mitchell’s motion has four main components:

1. Adopt a resolution calling for a special election on June 2, 2026.

2. Approve details of the new general sales tax ordinance, entitled the “Essential Services Restoration Act for Los Angeles County.”

3. Direct the County Chief Executive Office (CEO) to seek passage of state legislation to exempt this measure from the current sales tax caps.

4. Adopt a spending plan expressing the Board’s intent to allocate the funds collected to offset the cuts implemented by the passage of H.R. 1
As drafted, the “Essential Services Restoration Act for Los Angeles County” is a general sales tax measure and, if approved by a majority of county voters, would:

1. Impose a ½ percent (0.5 %) general sales tax until October 1, 2031, generating approximately $1 billion annually.

2. Establish a nine-member citizens’ oversight committee to provide transparency and ensure fiscal accountability as to any revenues raised by the measure.

3. Require a report be filed with the Board of Supervisors each year until funding is exhausted.

In her motion and resolution, Supervisor Mitchell points to the implementation of H.R. 1 and the federal funding cuts to Medicaid (Medi-Cal) as the reason this measure is necessary. As the primary revenue source of the County Department of Health Services (DHS), the loss of federal funding for Medi-Cal has resulted in a loss of more than $1 billion to DHS’s annual budget.

The base sales and use tax rate in Los Angeles County is currently 9.75%. Since the City of Rolling Hills does not have its own city sales tax, this is the current rate applicable for our city. If this measure passes, the applicable sales tax rate would be 10.25%.

Discussion:

Supervisor Mitchell’s proposal places the City Council in a policy position that is not merely informational, but requires consideration of whether the City of Rolling Hills should formally support, oppose, or remain neutral on a countywide general sales tax measure.

Although the measure is framed as a response to federal and state funding losses related to H.R. 1, the proposed ordinance would establish a general tax. As such, any revenues generated would be deposited into the County’s general fund, and the spending priorities outlined in the motion would be non-binding. Future Boards of Supervisors would retain full discretion over how these funds are ultimately allocated.

As mentioned, the proposed ½ cent sales tax would increase the base sales tax rate in Los Angeles County to 10.25%, which would apply to Rolling Hills residents and visitors. While Rolling Hills would not directly receive a dedicated share of the proceeds, City residents would contribute to the tax.

Some residents may benefit indirectly through regional health and social service programs.

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The measure includes some accountability features, such as a nine-member citizens’ oversight committee and annual independent audits. However, this committee would serve in an advisory capacity only and would not have any authority over the future spending decisions by the Board of Supervisors that utilize the funds generated by this additional sales tax.

In addition, the County is pursuing state legislation to exempt this measure from the statutory cap on local sales taxes. That legislation has not yet been introduced, creating uncertainty about the measure and whether it can legally take effect as drafted.

This evening, Council direction is requested on whether to:
• Support the measure and communicate that position to the County; • Oppose the measure based on concerns regarding taxation levels, local impacts, governance structure and other factors;
• Take no position at this time and monitor the outcome of the Board of Supervisors’ action and any related state legislation; or
• Provide alternative direction.

Based on this evening’s discussion, staff will pass along the Council’s decision to Supervisor Janice Hahn’s office.

Fiscal Impact:

None.

Recommendation:

Receive and file. Provide direction to staff.

Attachments:

1. Attachment A - CL_AGN_260209_CC_LACo_ProposedTempSalesTax_AgendaItem

2. Attachment B - CL_AGN_260209_CC_LegAnalystOffice_MajorImpacts_HR1

3. Attachment C - CL_AGN 260209_CCCA Action Alert

4. CL_AGN_260209_CC_PVE_OppositionLetter

5. CL_AGN_260209_CC_RPV_OppositionLetter

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PAGE 1 OF 2
Kathryn Barger
Fifth District
Janice Hahn
Fourth District

BOARD OF

SUPERVISORS
Hilda L. Solis
First District
Holly J. Mitchell
Second District
Lindsey P. Horvath
Third District
n
DATE: January 28, 2026
TIME: 11:30 a.m. – 1:30 p.m.

MEETING CHAIR: Jazmine Garcia-Delgadillo, 1ST Supervisorial District CEO MEETING FACILITATOR: Kieu-Anh King
THIS MEETING IS HELD UNDER THE GUIDELINES OF BOARD POLICY 3.055 To participate in the meeting in-person, the meeting location is:

Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012
Room 140
To participate in the meeting virtually, please call teleconference number:
1 (323) 776-6996 and enter the following: 330 628 704# or Click here to join the meeting
For Spanish Interpretation, the Public should send emails within 48 hours in advance of the meeting to [email protected] Members of the Public may address the Health and Mental Health Services Meeting on any agenda item. Two (2) minutes are allowed for each item.

THIS TELECONFERENCE WILL BE MUTED FOR ALL CALLERS. PLEASE DIAL *6 TO UNMUTE YOUR PHONE WHEN IT IS YOUR TIME TO SPEAK.

I. Call to order
II. Board Motion
a. SD2: Securing Funding to Preserve Critical County Services Cut by H.R.1 III. Information Item (Any Information Item is subject to discussion and/or presentation at the request of two or more Board offices):
a. DMH: Approval to Amend Existing Legal Entity and 24-Hour Residential Treatment Contracts to Increase Their Maximum Contract Amounts for Board of
Supervisors
Hilda L. Solis
First District
Holly J. Mitchell
Second District
Lindsey P. Horvath
Third District
Janice Hahn
Fourth District
Kathryn Barger
Fifth District
Board of Supervisors
Health and Mental Health Cluster
Agenda Review Meeting

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PAGE 2 OF 2
Fiscal Year 2025-26 for The Continuous Provision and Expansion of Specialty Mental Health Services
IV. Items Continued from a Previous Meeting of the Board of Supervisors or from the Previous Agenda Review Meeting
V. Items not on the posted agenda for matters requiring immediate action because of an emergency situation, or where the need to take immediate action came to the attention of the Department subsequent to the posting of the agenda.

VI. Public Comment
VII. Adjournment

IF YOU WOULD LIKE TO EMAIL A COMMENT ON AN ITEM ON THE HEALTH AND

MENTAL HEALTH SERVICES CLUSTER AGENDA, PLEASE USE THE FOLLOWING EMAIL AND INCLUDE THE AGENDA NUMBER YOU ARE COMMENTING ON:

[email protected]

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- MORE -
MOTION
MITCHELL ___________________________
HORVATH ___________________________
HAHN ___________________________
BARGER ___________________________
SOLIS ___________________________
AGN. NO.

MOTION BY SUPERVISOR HOLLY J. MITCHELL February 10, 2026 Securing Funding to Preserve Critical County Services Cut by H.R.1 The federal budget bill, H.R.1, also known as the “One Big Beautiful Bill Act”, proposed and signed into law by President Donald Trump, includes massive funding cuts.

In Los Angeles County (County), these cuts most severely impact the County’s health care system. H.R.1 cuts billions in federal Medicaid funding to California and imposes new eligibility requirements and copays, resulting in reduced care for patients. The County has 3.3 million residents who rely on Medi-Cal. That is 1 in 3 County residents, including nearly one million children. Hundreds of thousands of them could face loss of coverage and reduced access to care. The implications of these cuts are on track to result in overcrowding of emergency rooms when residents are unable to access health care until they are experiencing a life-threatening crisis.

After accounting for H.R.1, recent Executive Orders from the Trump Administration on grant oversight, and new federal Terms & Conditions restrictions, the County’s most impacted departments face projected losses totaling $2.4 billion over the next three years.

Due to funding losses, County officials have already initiated hiring freezes and are contemplating service consolidations, potential layoffs of 5,000 staff, and facility closures in the coming years. Federal funding cuts will affect public health services such as chronic disease prevention, disease tracking and water safety, as well as the health care provided at the County’s public hospitals and numerous clinics. The President’s bill, H.R.1, and other reductions in health and public health funding by the Trump Administration

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MOTION BY SUPERVISOR HOLLY J. MITCHELL
February 10, 2026

Page 2 ends

disproportionately affect low-income families and several of the proposed cuts specifically target health care and public health providers.

The Department of Health Services (DHS) plays a pivotal role in protecting the health and wellness of County residents. In 2024, DHS medical teams provided immediate and comprehensive care to 600,000 specialty care patients, handled 260,905 emergency room visits, 192,502 urgent care visits, and performed 36,295 surgeries. The system also served 193,241 people at food distribution clinics, secured permanent supportive housing for 22,239 individuals, and distributed 413,074 Narcan doses. These DHS medical teams work across four County hospitals — Los Angeles General Medical Center, Olive View Medical Center, Rancho Los Amigos and Harbor-UCLA Medical Center — as well as 23 clinic sites and various mobile and community-based sites. The cuts in H.R.1 will result in unprecedented and catastrophic impacts on residents and on health care and social service providers.

The reductions at both the federal and state levels significantly affect Medicaid (Medi-Cal), which is a primary revenue source for DHS. In just four months following H.R.1's signing, the County lost an average of 1,000 people per day from Medi-Cal enrollment — over 120,000 people between July and November 2025. During the same four-month period, more than 27,000 children under age 18 lost their Medi-Cal coverage, equating to nearly 200 children per day. In that same four-month period following H.R. 1's passage, the County also lost over 70,000 CalFresh enrollees receiving food assistance, including approximately 27,000 who were children under age 18. This funding and coverage loss poses a serious threat to the long-term sustainability of critical safety-net services relied upon by County residents, as the County health care system faces more than $1 billion in cuts. DHS alone, for example, must absorb a projected federal revenue loss exceeding $700 million per year. Additionally, the Department of Public Health (DPH) projects a loss of $200-300 million in federal and state funds. DPH is also forecasting a minimum $42 million deficit this fiscal year, requiring various clinic closures, service reductions, personnel reassignments and possible terminations. This deficit will likely worsen given cuts to federal revenue.

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MOTION BY SUPERVISOR HOLLY J. MITCHELL
February 10, 2026

Page 3 ends

The County health departments have been diligently examining every option to reduce expenditures and create efficiencies to avoid any health care service cuts to County residents. For example, DPH and DHS are limiting overtime to only essential clinical activities and those needed to respond to public health emergencies. Both departments are also restricting the distribution of County-issued cell phones, reducing lease and facility costs, lowering employee expenses by eliminating contract staff positions, implementing a soft hiring freeze, consolidating clinic services, and limiting travel and training expenses.

In addition to eliminating expenses, DHS is innovating ways to increase revenue.

Although the great majority of their patients are Medi-Cal recipients, DHS is creating a new patient accounting/revenue cycle system to maximize opportunities to bill private health insurance companies. DHS has also set aside an emergency reserve, called the DHS Enterprise Fund, to use in times of crisis. That emergency reserve funding and these efficiency efforts, however, are not enough to prevent large service cuts, layoffs and hospital closures starting next year. Seventy percent (70%) of DHS's budget comes from federal funding, and only 6% comes from local revenue. When the federal government withdraws that support, there is no ongoing backup funding. There is nothing left to cut without closing hospitals and clinics.

H.R.1 cuts extend beyond the County-operated health care facilities and also impact other non-profit hospital and clinic providers that substantially contribute to the safety net for uninsured and low-income residents. Nonprofit community health centers, for example, are a critical component of the County’s health care safety net, providing medical, dental, and behavioral health care to over 2 million County residents at more than 450 full time sites Countywide. Each year, these health centers serve 1 in 5 County residents, 1 in 3 County residents enrolled in Medi-Cal, and nearly 80,000 people experiencing homelessness. These private health centers disproportionately serve MediCal enrollees, people experiencing homelessness, immigrants, and patients with complex medical and behavioral health needs—populations most likely to be harmed by federal and State policy changes. The County and the nonprofit community health centers have closely partnered for over 30 years to create a system of care for the uninsured and underPage 143 of 328 MOTION BY SUPERVISOR HOLLY J. MITCHELL
February 10, 2026

Page 4 ends

resourced residents of our community. These public-private partnerships have improved access to care for hundreds of thousands of residents.

The Community Clinic Association of Los Angeles County projects that H.R.1 will have a disastrous impact on the health centers, forcing up to 1.5 million County residents off coverage, reducing covered benefits, and increasing the administrative burden required to keep people covered. Without local funding, health centers will also need to consider widespread service reductions and clinic closures as uncompensated care rises.

Underfunding community-based primary care will shift patients into emergency departments and DHS facilities, increasing County uncompensated care and system strain. Stable clinic funding keeps care in lower-cost, preventative care settings.

In order to meet the urgent health care needs of the County’s residents and combat the looming potential closure of hospitals, clinics and the emergency room overcrowding crisis caused by H.R. 1, this Board must place a temporary 0.5% sales tax on the ballot at the next available election to be held June 2, 2026. This measure includes taxpayer oversight, audits and accountability measures that ensure the public will know how the funding is spent by the County. Preliminary polling shows 58% of County residents would support a temporary ½ cent sales tax increase to preserve health care services.

What is at stake should not be lost on anyone. Without this measure, the County will be forced to limit critical public health services and close hospitals and clinics in communities that depend on them, leaving neighborhoods without essential, life-saving care. Maternity wards will shut down. Children who have lost their Medi-Cal coverage will have nowhere to go when they are sick except overcrowded emergency rooms, driving up costs for everyone and leaving families with medical bills they cannot pay. Essential public safety protections that ensure mitigation of communicable diseases, clean water, and health services for the most vulnerable will be severely curtailed or eliminated, resulting in grave danger for all County residents.

This Board will continue to pursue any other options to prevent the collapse of the County’s health care and social services safety net. Unfortunately, after exhausting every existing alternative, this temporary emergency measure is the only option that can be implemented quickly enough to prevent hospital closures and the loss of health care

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MOTION BY SUPERVISOR HOLLY J. MITCHELL
February 10, 2026

Page 5 ends

access for at least hundreds of thousands of residents. This proposed measure would keep the County’s health care system positioned to meet the demand it currently faces and prevent the potential closure of our public hospitals.

H.R.1 has created the largest federal health care cuts in U.S. history. These cuts are going to have both an immediate and generational impact. The unfortunate truth is that the blatant disinvestment in health care by our federal government requires strengthening local investments in the County. The County is authorized to impose a general retail transactions and use (sales) tax within both incorporated and unincorporated areas of the County to generate revenue dedicated to preserving and restoring health care services and other critical local services.

I THEREFORE MOVE THAT THE BOARD OF SUPERVISORS:

1. Adopt the attached resolution ordering, calling and giving notice of a special election to implement a countywide general retail transactions and use (sales) tax measure to be placed on the June 2, 2026 Statewide Direct Primary Election to be held in the County of Los Angeles on June 2, 2026.

2. Approve the general sales tax ordinance (attached as Exhibit A to the Resolution), which, subject to majority approval by the voters, would:
a. Impose a ½ percent (0.5 %) general sales tax until October 1, 2031; b. Establish a nine-member citizens’ oversight committee to provide transparency and ensure fiscal accountability as to any revenues raised by the measure by:
i. Reviewing the receipt and expenditures of the revenue from the sales tax, including the County’s annual independent audit; ii. Making recommendations to the Board on how to allocate the general fund revenue generated by the sales tax;
iii. Producing an annual oral or written report which shall be considered by the Board of Supervisors (Board) at a public meeting; and
iv. The committee’s responsibilities shall not include decisionmaking on spending priorities, financing plans or tax rate

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MOTION BY SUPERVISOR HOLLY J. MITCHELL
February 10, 2026

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projections or assumptions and the committee shall have no authority to direct, nor shall it direct, County staff or officials.

The Board shall give special consideration to organizational representatives most impacted by H.R.1 in making appointments to the citizens' oversight committee. Committee members must either reside or work in Los Angeles County. Citizens’ oversight committee members shall serve a three-year term and are eligible to be reappointed by the Board, at its discretion.
c. Require the Auditor-Controller to cause a report to be prepared by an independent auditor and filed with the Board no later than December 31st of each year until all funds are expended, stating: (i) the amount of general sales tax proceeds collected and expended in such year; and (ii) the status of any projects or description of any services or programs funded from proceeds of the general sales tax.

3. Direct the Chief Executive Office’s Legislative Affairs and Intergovernmental Relations Branch to support any legislative or administrative relief necessary to immediately implement the measure upon passage, including any needed exemptions from sales tax caps.

4. Adopt a spending plan expressing the Board's intent to allocate new general fund revenues generated by the general sales tax, if approved by the voters, in the following manner, subject to the County's annual budgeting process:
a. Up to forty-seven percent (47%) of revenue generated shall be used by the Department of Health Services (DHS) to fund a program under which a limited network of non-profit providers shall furnish no-cost or reduced cost care to low-income residents of Los Angeles County who do not have health insurance. Services available through the program shall include, to the extent funding is available, outpatient medical, dental, mild-to-moderate behavioral health, diagnostic, pharmaceuticals, and medical supplies;

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February 10, 2026

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b. Five percent (5%) shall be used for school-based health needs and programs as determined by the governing board of L.A. Care Health Plan;
c. Ten percent (10%) shall be allocated to the Department of Public Health to support core public health functions and the awarding of grants to support health equity;
d. Five percent (5%) shall be allocated to the Department of Public Social Services to support Medicaid outreach and enrollment activities as well as work and volunteer programs;
e. Two-and-a-half percent (2.5%) shall be allocated to support Correctional Health Services;
f. Twenty-two percent (22%) shall provide financial support to DHS to safeguard its public hospital and clinic services.
g. Five percent (5%) shall be allocated to support non-profit safety net hospitals in Los Angeles County, as determined by meeting one of the following criteria:
i. A critical access hospital in Los Angeles County; or ii. Non-profit hospitals that meet all of the following criteria:

1. At least 40% of the local population within a 5-mile radius around the hospital is living below 200% of the Federal Poverty Level (FPL);

2. The hospital’s location is listed under Los Angeles
County’s Concentrated Disadvantage Index;

3. The hospital’s service area is listed in the highest two tiers of Los Angeles County’s COVID-19 Vulnerability and
Recovery Index;

4. The hospital’s service area is listed in the highest need quartile of the California Healthy Places Index (HPI)
compiled by the Public Health Alliance;

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MOTION BY SUPERVISOR HOLLY J. MITCHELL
February 10, 2026

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5. The hospital’s service area is listed in the highest need quartile of the Centers for Disease Control and
Prevention’s Social Vulnerability Index;

6. The hospital provides at least 75,000 emergency room visits per year to Medi-Cal and uninsured, Medi-Cal
patients make up at least 70% of its total patients each year, and the hospital is not affiliated with a larger hospital or health care system;

7. The hospital’s service area is federally designated as a Health Professional Shortage Area (HPSA).
h. Two-and-a-half percent (2.5%) for in-home supportive services (IHSS) for the elderly and those living with disabilities with a priority on enhancing wages and benefits for IHSS providers;
i. One percent (1%) to provide financial support to the City of Pasadena Public Health Department and the City of Long Beach Department of Health and Human Services to safeguard their public services, to be divided between the cities proportionately based on what each city spent on core public health services over the past five fiscal years; j. Unless otherwise specified, all non-County hospital funds shall be distributed in a needs-based manner that is primarily based on Medicaid Emergency Department volume.
(YV/EA/VG)
# # #

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HOA.105763538.7

RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF

LOS ANGELES PROVIDING FOR AND GIVING NOTICE OF AN ELECTION ON A

GENERAL COUNTYWIDE TRANSACTIONS AND USE (SALES) TAX MEASURE TO BE HELD IN THE COUNTY OF LOS ANGELES ON JUNE 2, 2026, AND

CONSOLIDATING THE SPECIAL ELECTION WITH THE STATEWIDE PRIMARY ELECTION TO BE HELD ON JUNE 2, 2026
WHEREAS, the County of Los Angeles (County) relies on federal funding to support the delivery of vital services to the public, including health care, food assistance, social services, public health programs, child welfare services, housing, public safety, and other services critical for the health and safety of the public.

WHEREAS, 3.3 million County residents (one in three) rely on Medi-Cal for healthcare coverage and almost 1.5 million County residents rely on the Supplemental Nutrition and Assistance Program (called CalFresh in California).

WHEREAS, on July 4, 2025, H.R. 1, also known as the "One Big Beautiful Bill Act", was signed into federal law. This law imposes, among other cuts to public services, extensive reductions in federal support for Medicaid and the Supplemental Nutrition Assistance Program (SNAP) and may cause hundreds of thousands of County residents who rely on Medi-Cal to lose coverage and face reduced access to care. It could result in overcrowding of emergency rooms when residents are unable to get any health care until they are experiencing a life-threatening crisis.

WHEREAS, the cumulative fiscal impact of federal laws and policies imposed since January 20, 2025, including H.R. 1, Executive Orders on grant oversight, and new federal terms and conditions restrictions, has led the County’s most impacted departments to project revenue losses totaling $2.4 billion over the next three years, which may result in hiring freezes, service reductions, potential layoffs of 5,000 staff, and facility closures in the coming years.

WHEREAS, federal funding cuts could affect public health services like chronic disease prevention, disease tracking, and water safety, as well as the health care provided at the County’s four public hospitals, numerous clinics, partner non-profit safety net hospitals and community health centers, and these cuts will disproportionately affect low-income families and target health care and public health providers.

WHEREAS, proposed reductions at both the federal and State levels are expected to significantly affect Medicaid (Medi-Cal), which is a primary revenue source for the Department of Health Services (DHS). In just four months following H.R. 1's signing, the County lost an average of 1,000 people per day from Medi-Cal enrollment — over 120,000 people between July and November 2025. During the same four-month period, more than 27,000 children under 18 lost their Medi-Cal coverage, equating to nearly 200 children per day.

WHEREAS, from July 2025 to November 2025, since H.R.1’s signing, over 70,000 County residents were dropped from CalFresh enrollment – including almost 27,000 children under 18.

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HOA.105763538.7
WHEREAS, this funding and coverage loss will cause a serious threat to the long-term sustainability of critical safety net services relied upon by County residents. DHS, for example, needs to absorb a projected federal revenue loss exceeding $700 million per year.

WHEREAS, the Department of Public Health (DPH) is projecting a $200-300 million loss in federal and state funds. DPH is forecasting a minimum $42 million deficit in fiscal year 2025-26, requiring various clinic closures, service reductions, personnel reassignments and possible terminations. This deficit will likely worsen given cuts to federal revenue.

WHEREAS, Medicaid is the single largest source of revenue for Los Angeles County's health departments, including the twenty-three health centers and four acute care hospitals run by the County and many non-profit safety-net facilities that provide irreplaceable lifesaving services for residents of Los Angeles County.

WHEREAS, many key provisions of H.R. 1 took effect immediately, including the prohibition on new provider taxes, which effectively negates Proposition 35 that voters approved in November 2024 and that would have extended the State's managed care organization (MCO) tax and provided needed support to the Medi-Cal program while also providing dedicated funding to public hospitals which was assumed in the current State and County budgets for the current fiscal year.

WHEREAS, H.R. 1 immediately freezes supplemental Medicaid funding and prevents the Los Angeles County health departments from being able to draw down expected and needed supplemental Medicaid payments causing a significant negative impact on the County budget immediately and escalating over time.

WHEREAS, the County will be required to offset the losses to health care and human services funding with revenue from the County's General Fund which will directly impact the County's ability to provide other vital services to County residents, including but not limited to social services, supportive services for unhoused residents, and public safety.

WHEREAS, pursuant to Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, the County is authorized to impose a retail transactions and use (sales) tax in the incorporated and unincorporated territory of the County for general purposes, including health care and human services, at a rate of one-half percent (0.5%).

WHEREAS, section 2 of Article XIIIC of the California Constitution, sections 53721- 53724 of the California Government Code, and Part 1.6 of Division 2 of the California Revenue and Taxation Code authorize the County of Los Angeles to levy, increase, or extend a general sales tax upon two-thirds vote of the Board of Supervisors and a majority vote of the electorate.

WHEREAS, the Board of Supervisors desires to levy a general sales tax at the rate of 0.5 percent, effective as of October 1, 2026, to continue for a period of five years.

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HOA.105763538.7
WHEREAS, pursuant to Article XIII C, section 2(b) of the Constitution and California Government Code section 53724(c), an election for the approval of a temporary general sales tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government;
WHEREAS, the County’s regularly scheduled elections are held on the same day as the statewide primary election in each even-numbered year, and the next regularly scheduled election for members of the Board of Supervisors and the next statewide primary election will be held on Tuesday, June 2, 2026; and
WHEREAS, the Board of Supervisors deems it necessary, essential, and in the public interest to submit the sales tax measure to the qualified voters within the County at an election to be held on June 2, 2026, and to consolidate such election with the other elections to be held on that date.

WHEREAS, the tax revenues from this general sales tax levy would partly offset reductions in federal support imposed by H.R. 1 and help the County to continue to provide vital services including health care and human services to the public.

WHEREAS, voter approval of this ordinance will not affect the County's existing sales taxes, which will continue to be levied.

WHEREAS, to promote accountability and transparency, this ordinance provides for the creation of a citizens' oversight committee that will review the receipt and expenditures of the revenues from the general sales tax and provide annual reporting of the committee's review at a public meeting.

NOW, THEREFORE BE IT RESOLVED, by the Board of Supervisors of the County of Los Angeles as follows:

Section 1. Call of the Election and Purpose. An election shall be held and the same is hereby called and ordered to be held in the County on the 2nd day of June, 2026, for the purpose of submitting to the voters: (1) the ordinance attached hereto as Exhibit A and incorporated herein (Ordinance) by this reference, which was approved by two-thirds vote of the Board of Supervisors. The Ordinance shall become effective if a majority of the qualified voters of the County of Los Angeles voting on the Ordinance measure set forth in Section 2, below, vote in favor of the measure.

Section 2. Ballot Measure. Pursuant to Elections Code section 10403, the measure shall appear on the ballot substantially as follows:

Essential Services Restoration Act for Los Angeles County General Sales Tax Measure Shall the measure to help our community address severe federal cuts enacted by the President and Congress; reduce the loss of essential services, including healthcare for county residents; reduce the risk of closing the Yes

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HOA.105763538.7
county’s four public hospitals and numerous clinics, and significant healthcare provider layoffs and other service cuts by enacting a 1/2¢ (0.5%) general sales tax for 5 years, generating approximately $1 billion annually, with independent audits, be adopted?
No
Section 3. Proclamation. Pursuant to section 12001 of the Elections Code, the Board of Supervisors of the County of Los Angeles hereby PROCLAIMS that an election shall be held in the County on Tuesday, June 2, 2026, to vote upon the measure.

Section 4. Election Procedure. All qualified voters residing within the County shall be permitted to vote in the election and in all particulars not recited in this Resolution, the elections shall be held as nearly as practicable in conformity with the Elections Code of the State of California. The votes cast for and against the measure shall be separately counted, and if the measure receives a majority of the votes cast by the qualified electors voting on the measure, the general sales tax in the amount stated in the Ordinance shall be effective and ratified. Should another proposed measure with conflicting provisions appear on the same ballot, and each proposed measure receives a majority of votes, the proposed measure with the highest number of affirmative votes shall prevail, in conformity with section 9123 of the Elections Code.

Section 5. Sample Ballot. The Registrar-Recorder/County Clerk is instructed to print the entire proposed Ordinance in the sample ballot.

Section 6. Consolidation. The election called by this Resolution shall be consolidated with the other elections conducted by the Registrar-Recorder/County Clerk to be held in the County of Los Angeles on June 2, 2026, and the measure shall be placed on the same ballot in the order set forth in this Resolution. The precincts, polling places, vote centers, precinct board members, election workers, and facilities shall be the same as provided for the June 2, 2026 statewide primary election.

Section 7. Authority. This Resolution is adopted pursuant to sections 10403 and 12001 of the Elections Code and section 25201 of the Government Code. The Executive Officer-Clerk of the Board of Supervisors is ordered to file a copy of this Resolution with the RegistrarRecorder/County Clerk at least eighty-eight (88) days prior to the day of the election. The Registrar-Recorder/County Clerk is authorized, instructed and directed to prepare any documents and take any additional actions that may be necessary in order to properly and lawfully conduct the election.

Section 8. California Environment Quality Act. Based upon all of the facts before it on this matter, the Board of Supervisors finds that the submission of the measure to the voters is not subject to, or is exempt from, the California Environmental Quality Act (CEQA).

Submission of the measure is not a project as defined by California Code of Regulations, title 14, section 15378(b)(4) because it relates to the creation of government funding mechanisms, which do not involve commitment to any specific project which may result in a potentially significant physical impact on the environment.

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HOA.105763538.7
The foregoing resolution was on the ___ day of _____ 2026, adopted by the Board of Supervisors of the County of Los Angeles and ex officio the governing body of all other special assessment and taxing districts, agencies, and authorities for which said Board so acts.

EDWARD YEN, Executive Officer-Clerk of the
Board of Supervisors of the County of Los Angeles
By: __________________________
APPROVED AS TO FORM:

DAWYN R. HARRISON
County Counsel
By: _________________________
Senior Deputy County Counsel
Eva Chu

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1 HOA.105763530.4

ANALYSIS
This ordinance amends Title 4 – Revenue and Finance, of the Los Angeles County Code, by adding Chapter 4.70, the Essential Services Restoration Act for Los Angeles County General Retail Transactions and Use Tax, to impose a general countywide tax of 0.5 percent on all retail sales consummated at the retailer’s place of business, and on the storage, use or other consumption of tangible personal property. Revenues generated from the retail transactions and use tax will be placed in the County general fund and may be used for any County services. The ordinance will become effective only after approval by a two-thirds vote of the County Board of Supervisors and a majority of the qualified voters voting in an election on the issue.

DAWYN R. HARRISON
County Counsel
By _________________________
MICHAEL S. BUENNAGEL
Senior Deputy County Counsel
Government Services Division
MSB:eg
Requested: 01/16/2026
Revised: 01/21/2026

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2 HOA.105763530.4
ORDINANCE NO.

An ordinance amending Title 4, Revenue and Finance of the Los Angeles County Code, to add Chapter 4.70 ‒ Essential Services Restoration Act for Los Angeles County General Retail Transactions and Use Tax, relating to a general county-wide retail transactions and use tax.

WHEREAS, the County of Los Angeles (County) relies on federal funding to support the delivery of vital services to the public, including health care, food assistance, social services, public health programs, child welfare services, housing, public safety, and other services critical for the health and safety of the public.

WHEREAS, federal funding cuts could affect public health services like chronic disease prevention, disease tracking and water safety, as well as the health care provided at the County’s four public hospitals numerous clinics, partner non-profit safety net hospitals and community

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3 HOA.105763530.4
health centers, and these cuts will disproportionately affect low-income families and target health care and public health providers.

WHEREAS, from July 2025 to November 2025, since H.R.1’s signing, over 70,000 County residents dropped from CalFresh enrollment – including almost 27,000 children under 18.

WHEREAS, this funding and coverage loss will cause a serious threat to the long-term sustainability of critical safety net services relied upon by County residents. DHS, for example, needs to absorb a projected federal revenue loss exceeding $700 million per year.

WHEREAS, the Department of Public Health (DPH) is projecting a $200-300 million loss in federal and state funds. DPH is forecasting a minimum $42 million deficit in fiscal year 2025- 26, requiring various clinic closures, service reductions, personnel reassignments and possible terminations. This deficit will likely worsen given cuts to federal revenue.

WHEREAS, Medicaid is the single largest source of revenue for Los Angeles County's health departments, including the twenty-three health centers and four acute care hospitals run by the County, and many non-profit safety net facilities that provide irreplaceable lifesaving services for residents of Los Angeles County.

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4 HOA.105763530.4
to public hospitals which was assumed in the current State and County budgets for the current fiscal year.

WHEREAS, section 2 of Article XIIIC of the California Constitution, sections 53721-53724 of the California Government Code, and Part 1.6 of Division 2 of the California Revenue and Taxation Code authorize the County of Los Angeles to levy, increase, or extend a general sales tax upon two thirds vote of the Board of Supervisors and a majority vote of the electorate.

WHEREAS, the Board of Supervisors desires to levy a general sales tax at the rate of 0.5 percent, effective as of October 1, 2026, to continue for a period of five years.

WHEREAS, voter approval of this ordinance will not affect the County's existing sales taxes, which will continue to be levied.

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Rolling Hills City CouncilFebruary 9, 2026

Rolling Hills City Council
February 9, 2026