18 govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the Agency.
XX. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this Agreement or with respect to the terms and conditions of this Agreement, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.
XXI. SEVERABILITY
Any part, provision, or representation of this Agreement or any of its exhibits, including, but not limited to “Exhibit C”, which is held to be invalid, void or unenforceable by a court of competent jurisdiction, shall be limited to that part, provision or representation and all other parts, provisions, or representations herein shall remain in full force and effect.
XXII. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and represents that they have the authority to execute this Agreement on behalf of the Consultant and have the authority to bind Consultant to the performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.
19 “CONSULTANT”
Consultant name
By: ________________________________ (Signature)
____________________ ____________
___________ President____________
“AGENCY”
ATTEST: CITY OF SAN DIMAS, a municipal corporation
By: By:
Debra Black, City Clerk Brad McKinney, City Manager
Approved as to form:
By:
Jeff Malawy, City Attorney
Attachment: Exhibit A Tasks to Be Performed/Consultant’s Proposal Exhibit B Payment Schedule
Exhibit C Insurance Requirements
20 EXHIBIT A
TASKS TO BE PERFORMED/CONSULTANT’S PROPOSAL
21 EXHIBIT B
PAYMENT SCHEDULE
22 EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting Consultant’s indemnification of Agency, and prior to commencement of work and/or services under this Agreement, Consultant shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and, in a form, satisfactory to Agency.
General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended.
Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than 1,000,000 combined single limit for each accident.
Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (statutory limits) and Employer’s Liability insurance (with limits of at least $1,000,000).
Consultant shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees, and volunteers.
Umbrella or excess liability insurance. Consultant shall obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer;
• “Pay on behalf of” wording as opposed to “reimbursement”; • Concurrency of effective dates with primary policies.
Should Consultant obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.
23 Other provisions or requirements
Proof of insurance. Consultant shall provide certificates of insurance and required endorsements to Agency as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Agency for the contract period and any additional length of time required thereafter. Agency reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. Consultant shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by Consultant, their agents, representatives, employees, or subconsultants.
Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by Agency shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Agency before the Agency’s own insurance or self- insurance shall be called upon to protect it as a named insured.
Agency’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Agency has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by Agency will be promptly reimbursed by Consultant or Agency will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, Agency may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Agency, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against Agency and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the Agency to inform Consultant of non-compliance with any requirement imposes no additional obligations on the Agency nor does it waive any rights hereunder.
24 Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the Agency requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Agency.
Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide the Agency with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the Consultant’s insurers are unwilling to provide such notice, then Consultant shall have the responsibility of notifying the Agency immediately in the event of Consultant’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.
Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that Agency and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by Consultant (hereinafter collectively “Subcontractor”), provide the same minimum insurance coverage and endorsements required of Consultant under this Agreement. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event Consultant’s Subcontractor cannot comply with this requirement, which proof must be submitted to the Agency, Consultant may still be able to utilize the Subcontractor provided Consultant shall be required to ensure that its Subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Subcontractor’s scope of work and services, with limits less than required of the Consultant, but in all other terms consistent with the Consultant’s requirements under this Agreement. This provision does not relieve the Consultant of its contractual obligations under the Agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide Consultant with the ability to utilize a Subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the Consultant under this Agreement given the limited scope of work or services provided by the subcontractor. Consultant agrees that upon request, all agreements with Subcontractors, and others engaged in the project and/or services, will be submitted to Agency for review.
25 Agency’s right to revise specifications. The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the Agency and Consultant may renegotiate Consultant’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by Agency. Agency reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.
Timely notice of claims. Consultant shall give Agency prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of March 24, 2026
From: Brad McKinney, City Manager
Prepared by: Michael O'Brien, Director of Administrative Services Subject: Receive and file the February 2026 Investment Report ____________________________________________________________________________
SUMMARY
Monthly Reporting for the City of San Dimas investment of idle funds and cash condition.
RECOMMENDATION
Staff recommends that the City Council:
• Receive and file the Investment and Cash Condition report for the month of February 2026.
GOVERNMENT CODE §84308 APPLIES:
https://leginfo.legislature.ca.gov
No
FISCAL IMPACT
There is no fiscal impact for the recommended action.
DISCUSSION/ANALYSIS
It is the policy of the City of San Dimas to invest public funds in a manner that will provide an optimal combination of security and investment return while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.
The priority objectives of the City’s investment activities are as follows: Safety, liquidity and returns.
The City’s investment portfolio as of February 28, 2026 maintained liquid cash in the amount of $14,917,821.64 held between BMO Harris, the City and LAIF and the CALTRUST Liquidity Fund, which amounts to just over 19% of the portfolio to provide the cash flow necessary for City payroll
Receive and File the February 2026 Investment Report Page 2 For the Meeting of March 24, 2026
and operating expenditures, as well as large capital project expenses and unforeseen emergencies that may occur throughout the year. The following chart displays the total investments and weighted average yield per investment category:
The City’s Banking Services Provider BMO Harris provides a fully collateralized checking account whose funds are used to make cash payments for City payroll and operational expenses. The City performs daily bank reconciliations to assure adequate cash is held in the checking account for upcoming expenditures. Cash held in the account earns income credits that accumulate at a rate of .75% which offsets banking service charges that are charged each quarter to the city. As of June 10, 2024, the City opened a collateralized money market account with BMO Harris.
Petty Cash is held at City facilities for cashiering purposes and to reimburse small dollar expenditures between $0.01 and $50.00.
The Local Agency Investment Fund (LAIF) is considered a Local Agency Investment Pool and acts much like a money market account. Funds can be deposited and withdrawn without penalty.
The pool invests funds in short-term securities and can produce returns at rates like money markets but is considered more secure.
CALTRUST is a public agency that provides investment funds that are liquid, short term, and medium term. The assets held by CALTRUST are managed by State Street Global Advisors. The City first invested with CALTRUST in August of 2010, buying into the Medium-Term Fund. The City has made various contributions throughout the years as well as reinvested any accumulated interest earnings throughout the life of the fund.
In total the weighted average cost of investing in CALTRUST is $9.99. Currently due to increasing interest rates driving market rates down for assets already held, the share price of the fund as of February 28, 2026, was $9.95. Until interest rates decline to the point that share price would WEIGHTED AVG.
YIELD TOTAL INVESTMENT
0.75% $783,300.86
3.16% $1,353,123.94
0.00% $2,640.00
3.82% $24,992.94
3.93% $12,753,763.90
3.90% $15,138,312.81
3.80% $30,056,134.45
WEIGHTED AVG.
YIELD TOTAL INVESTMENT
4.51% $10,498,442.88
2.43% $2,274,492.50
3.10% $1,728,000.00
4.32% $277,068.00
4.09% $1,010,228.46
3.98% $15,251,284.87
2.64% $737,350.00
3.63% $16,614,000.00
3.86% $48,390,866.71
3.83% $78,447,001.16
STIFEL NEGOTIABLE CD'S OF DEPOSIT
TOTAL BROKER ACCOUNTS
TOTAL OF ALL INVESTMENTS
BMO HARRIS - GENERAL ACCOUNT
SAN DIMAS PETTY CASH - IMPREST FUNDS
LOCAL AGENCY INVESTMENT FUND (LAIF) CA STATE TREASURER
CALTRUST INVESTMENT PROGRAM-MEDIUM TERM-SHARES
GREAT PACIFIC SECURITIES CORPORATE & MUNICIPAL BONDS
TVI CORPORATE BONDS
TVI NEGOTIABLE CERTIFICATES OF DEPOSIT
STIFEL GOVERNMENT SPONSORED ENTERPRISES (GSE) AGENCY BONDS
STIFEL CORPORATE & MUNICIPAL BONDS
TVI CORPORATE & MUNICIPAL BONDS
COLLATERALIZED, POOLED AND PUBLIC AGENCY INVESTMENTS
INVESTMENTS PURCHASED THROUGH BROKERS
TOTAL OF ALL COLLATERALIZED,POOLED AND PUBLIC AGENCY ACCOUNTS
CALTRUST INVESTMENT LIQUIDITY FUNDS
BMO HARRIS - MONEY MARKET ACCOUNT
TVI GOVERNMENT SPONSORED ENTERPRISES (GSE) AGENCY BONDS
Receive and File the February 2026 Investment Report Page 3 For the Meeting of March 24, 2026
increase to $9.99 or above, the city would be recognizing a loss on sale. However, the City could pull out funds at any time if liquidity needs arose.
Beginning in the month of December 2023, the City opened a liquid fund with CALTRUST which is not subject to market rate adjustments due to the type of investments utilized. The fund yielded
3.82% for the month of February. The City intends to take advantage of the high yielding short term investments until yields are no longer inverted.
The City Treasurer also utilizes Brokers to purchase investment securities such as Government Sponsored Enterprises (Agency Bonds), Corporate Bonds, U.S. Treasuries and Negotiable CD’s.
As investments get purchased a broker money marker will be used for the transition time between investments maturing and becoming available cash for reinvestments.
The investment policy and California Government Code Section 53600.3 allows the City to invest 30% of its portfolio in Certificates of Deposit and 20% of its portfolio in Corporate Bonds through Brokers. U.S. Treasuries and Government Sponsored Enterprises (Agency Bonds) have no investment limits; however, it is considered a best practice not to invest more than 5% in a single Government Sponsored Enterprises.
The following is a breakdown of the total invested in each type of investment along with its percentage of the portfolio:
Additionally, per the Investment Policy, the City has an established maturity matrix with the investment ranges as follows:
Maturity Range Guideline Portfolio Percentage
The City’s current investment maturity range is as follows:
Amount % of Portfolio
$2,139,064.80 3%
$12,753,763.90 16%
$15,163,305.75 19%
$16,261,513.33 21%
$13,787,353.38 18%
$18,342,000.00 23%
$78,447,001.16 100%
Type
LOCAL AGENCY INVESTMENT FUND (LAIF)
INVESTMENTS BY TYPE INV
CHECKING & MONEY MARKET ACCOUNTS/CASH ON HAND/
CASH HELD FOR INVESTMENT
Maturity Range
1 Day t
1 Yr. to
CALTRUST
GSE AGENCY BONDS
CORPORATE & MUNICIPAL BONDS
NEGOTIABLE CERTIFICATES OF DEPOSIT
TOTAL OF ALL INVESTMENTS Weighted A
3 Yrs. to
1 Day to 1 Year 30% - 100%
1 Year to 3 Years 5% - 60%
3 Years to 5 Years 0% - 40%
Receive and File the February 2026 Investment Report Page 4 For the Meeting of March 24, 2026
The weighted average maturity for all City investments is 1.74 years, short term investments with maturity within six months continues to draw higher yields; however, longer-term yields have been increasing making investing in longer term assets more appealing.
Specific details pertaining to the City’s investment names, CUSIP #’s, coupon and purchase yields, maturity dates, par and book values are included in the Investment and Cash Condition Report attachment.
ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.
Respectfully submitted,
Michael O'Brien
Director of Administrative Services
Attachments:
1. Investment and Cash Condition Report
2. Investment Authorization Form
Amount % of Portfolio
37,748,044.18$ 48%
14,608,352.46$ 19%
26,090,604.52$ 33%
78,447,001.16$ 100%
3.83%
1.74 INVESTMENTS BY MATURITY
Maturity Range
1 Day to 1 Yr.
1 Yr. to 3 Yrs.
Weighted Average Maturity in Years
Weighted Average Yield
3 Yrs. to 5 Yrs.
Total
CITY OF SAN DIMAS
MONTHLY CASH BALANCE INVESTMENT REPORT
FEBRUARY 2026
ENDING BALANCE
$783,300.86
BMO HARRIS - MONEY MARKET ACCOUNT $1,353,123.94
$2,640.00
$12,753,763.90
$24,992.94
$15,138,312.81
$0.00
CUSIP # COUPON
YIELD
PURCHASE
YIELD MATURITY PAR VALUE BOOK VALUE
CHEVRON - 3 YEAR BOND 166756ALO 1.02% 4.75% 8/12/2027 $250,000.00 $222,444.51 YUCAIPA VY CALIF WATER DISTRICT 98840BBD4 2.29% 4.72% 9/1/2027 $250,000.00 $232,227.50 ONTARIO CALIFORNIA PUB - 3 YEAR BOND 68304RCD0 1.81% 4.52% 10/1/2027 $255,000.00 $232,539.60 UNITED HEALTH GROUP - 4 YEAR BOND 91324PDK5 3.85% 4.73% 6/15/2028 $250,000.00 $241,935.46 CALIFORNIA ST UNIV REV SYSTEMWIDE- 4 YEAR BOND 13077DQG0 3.85% 4.70% 6/15/2028 $310,000.00 $270,924.50 SOLANO CALIF COMMUNITY COLLEGE - 4 YEAR BOND 83412PHB1 1.48% 4.50% 8/1/2028 $350,000.00 $308,661.50 ADVOCATE HEALTH & HOSPS CORP 007589AA2 3.83% 4.64% 8/15/2028 $305,000.00 $296,779.55 CALIFORNIA ST DEPT WATER - 4 YEAR BOND 13067WRF1 1.32% 4.70% 12/1/2028 $250,000.00 $215,147.50 CALIFORNIA ST DEPT WTR - 3 YEAR BOND 13067WRF1 1.32% 4.28% 12/1/2028 $330,000.00 $297,851.40 ATHENE GLOBAL FDG - 5 YEAR BOND 04685A3G4 2.71% 4.43% 1/7/2029 $350,000.00 $326,841.60 METLIFE GLOBAL - 5 YEAR BOND 59217GFR5 4.85% 4.90% 1/8/2029 $250,000.00 $249,451.14 TOYOTA MTR CORP 59217GFR5 3.65% 4.20% 1/9/2029 $300,000.00 $293,442.80 NORTHWESTERN MUT GLOBAL - 5 YEAR BOND 66815L2Q1 4.71% 5.16% 1/10/2029 $250,000.00 $245,327.02 RGA GLOBAL - 5 YEAR BOND 76209PAB9 2.70% 4.50% 1/18/2029 $300,000.00 $278,689.63 NY LIFE GLOBAL - 5 YEAR BOND 64952WFF5 4.70% 4.76% 1/29/2029 $500,000.00 $500,000.00 MASS MUTUAL GLOBAL - 5 YEAR BOND 57629W4T4 5.15% 5.15% 5/30/2029 $250,000.00 $249,998.23 BMW US CAP LLC - 4.5 YEAR BOND 05565ECR4 4.65% 5.00% 8/13/2029 $300,000.00 $295,721.23 MERCEDES BENZ - 4.85 YEAR BOND 233851DW1 3.10% 4.64% 8/15/2029 $350,000.00 $327,541.16 ASCENSION TAXABLE - 4.5 YEAR BOND 04352EAA3 4.45% 4.45% 8/15/2029 $350,000.00 $322,849.13 PACIFIC LIFE GLOBAL - 4.5 YEAR BOND 6944PL3C1 4.50% 4.65% 8/28/2029 $250,000.00 $248,463.27 MUTUAL OF OMAHA - 5 YEAR BOND 62829D2E9 4.75% 4.75% 10/15/2029 $250,000.00 $249,997.05 PRICOA GLOBAL FUNDING - 5 YEAR BOND 74153WCW7 4.70% 4.40% 10/15/2029 $325,000.00 $325,000.00 AIG GLOBAL - 4.43 YEAR BOND 00138CBC1 4.90% 4.90% 12/3/2029 $350,000.00 $348,496.02 PROTECTIVE LIFE GLOBAL - 4.8 YEAR BOND 74368CCA0 4.77% 4.91% 12/9/2029 $350,000.00 $347,908.68 SAN BUENAVENTURA CALIFORNIA WATER - 4.5 YEAR BOND 797055DQ0 4.37% 4.37% 1/1/2030 $305,000.00 $271,553.70 COSTCO WHOLESALE CORP BOND - 4 YEAR BOND 22160KAP0 1.60% 3.91% 4/20/2030 $575,000.00 $523,471.91 WESTERN - SOUTHERN GLOBAL - 5 YEAR BOND 95954A2A0 4.50% 4.90% 5/1/2030 $350,000.00 $350,000.00 TEXAS INSTRUMENT - 4 YEAR BOND 3882508BJ2 1.75% 3.85% 5/4/2030 $350,000.00 $319,810.19 GUARDIAN LIFE CORP BOND - 5 YEAR BOND 40139LBN2 4.33% 4.10% 5/15/2030 $350,000.00 $350,000.00 UNIVERSITY OF CALIFORNIA - 5 YEAR BOND 91412HJR5 4.43% 4.43% 5/15/2030 $500,000.00 $444,445.00 MET TOWER CORP BOND - 5 YEAR BOND 58989V2L7 4.05% 4.05% 10/6/2030 $350,000.00 $350,000.00 MASS MUTUAL GLOBAL - 4 YEAR BOND 57629WCW8 1.55% 4.16% 10/9/2030 $350,000.00 $310,923.60 META PLATFORMS 5YR 4.10% 30303MA88 4.10% 4.10% 11/15/2030 $350,000.00 $350,000.00 PRICOA GLOBAL FUNDING - 5 YEAR BOND 74153WCZ0 4.35% 4.13% 11/25/2030 $300,000.00 $300,000.00 $10,498,442.88
JP MORGAN BOND - 5 YEAR BOND 48128G3G3 1.20% 1.20% 4/30/2026 $285,000.00 $285,000.00 EXXON MOBILE CORP - 7 YEAR BOND 30231GBD3 2.28% 0.98% 8/16/2026 $250,000.00 $264,953.75 GOLDMAN SACHS GROUP - 5 YEAR BOND 38150AJ63 1.70% 1.70% 10/29/2026 $210,000.00 $210,000.00 MORGAN STANLEY FIN GLOBAL - 5 YEAR BOND 61766YGT2 1.35% 1.35% 11/18/2026 $250,000.00 $250,000.00 JP MORGAN CHASE BOND - 5 YEAR BOND 48128G5Y2 2.10% 2.10% 1/29/2027 $270,000.00 $270,000.00 BANK OF AMERICA - 5 YEAR BOND 06048WS84 2.75% 2.75% 3/2/2027 $250,000.00 $250,000.00 MORGAN STANLEY-FIN GLOBAL 5 YEAR BOND 61766YJQ5 3.25% 3.25% 4/13/2027 $250,000.00 $250,000.00 INTEL CORP - 5 YEAR BOND 458140BY5 3.75% 4.25% 8/5/2027 $250,000.00 $244,538.75 WELLS FARGO - 4 YEAR BOND 95001DL99 4.50% 4.50% 8/4/2029 $250,000.00 $250,000.00 $2,274,492.50
CALTRUST INVESTMENT PROGRAM-MEDIUM TERM
INVESTMENTS
3.90%
CALTRUST LIQUIDITY FUND
INVESTMENTS HELD WITH TVI:
GREAT PACIFIC SECURITIES CORPORATE & MUNICIPAL BONDS INVESTMENTS SUBTOTAL:
3.82%
INVESTMENTS HELD WITH GREAT PACIFIC SECURITIES:
PRINCIPAL IN BROKER MONEY MARKET
SUMMARY OF BANK BALANCES YIELD
0.75%
3.93%
BMO HARRIS - GENERAL ACCOUNT
SAN DIMAS PETTY CASH - IMPREST FUNDS
LOCAL AGENCY INVESTMENT FUND (LAIF) CA STATE TREASURER
3.16%
TVI CORPORATE BONDS INVESTMENTS SUBTOTAL:
ATTACHMENT 1
CAPITAL ONE BANK - 4 YEAR CD 14042TFH5 2.65% 2.65% 4/13/2026 $246,000.00 $246,000.00 TOYOTA FINANCIAL SAVINGS - 5 YEAR CD 89235MLC3 0.95% 0.95% 7/15/2026 $248,000.00 $248,000.00 MARINE FEDERAL CREDIT UNION - 2 YEAR CD 56824JBD54 4.20% 4.20% 11/27/2026 $249,000.00 $249,000.00 GOLDMAN SACHS BANK USA NEW YORK - 5 YEAR CD 38149M4T7 2.65% 2.65% 4/13/2027 $246,000.00 $246,000.00 STATE BANK OF INDIA - 5 YEAR CD 856285N64 3.30% 3.30% 6/1/2027 $245,000.00 $245,000.00 BRIDGEWATER BANK - 4 YEAR CD 108622QG94 3.90% 3.90% 10/30/2030 $249,000.00 $249,000.00 FIRST GTY BK HAMMOND - 5 YEAR CD 320437BF2 4.05% 4.05% 11/29/2030 $245,000.00 $245,000.00 $1,728,000.00
13063EGT7 4.50% 4.32% 8/1/2029 $275,000.00 $277,068.00
$277,068.00
3133ERL41 4.13% 4.40% 12/17/2029 $517,000.00 $510,703.46 3130B7SM77 3.75% 3.77% 9/23/2030 $500,000.00 $499,525.00 $1,010,228.46
3138LDPW7 2.68% 4.58% 5/1/2026 $250,000.00 $228,805.98
3138LDYL1 2.47% 4.93% 6/1/2026 $500,000.00 $473,750.00
3130ANMH0 1.10% 1.42% 8/20/2026 $250,000.00 $246,400.00 3133ENSZ4 2.75% 2.75% 4/1/2027 $250,000.00 $250,000.00
16863LAB1 3.50% 3.50% 7/29/2027 $175,000.00 $173,950.00 3140LBSE4 1.09% 4.38% 3/1/2028 $350,000.00 $306,250.00
FEDL NATL MTG ASSN - 5 YEAR BOND 3140NUUA5 4.52% 4.52% 3/1/2029 $500,000.00 $499,062.50 FEDL NATL MTG ASSN - 3.9 YEAR BOND 3140LFKC7 4.20% 2.11% 3/1/2029 $365,000.00 $337,739.06 FEDL HOME LOAN MTG CORP - 5 YEAR BOND 3132XDBP7 4.15% 4.61% 4/1/2029 $400,000.00 $392,857.31 FEDL HOME LOAN MTG CORP - 5 YEAR BOND 3132XKSV0 3.81% 3.81% 7/1/2029 $400,000.00 $387,000.00 FEDL NATL MTG ASSN - 5 YEAR BOND 314HU7G5 2.74% 4.06% 8/1/2029 $500,000.00 $472,031.25 FEDL HOMELOAN MTG CORP - 5 YEAR BOND 3132XKTE7 4.02% 4.49% 8/1/2029 $505,000.00 $495,846.88 FEDL NATL MTG ASSN - 4.8 YEAR BOND 3140HVJ62 4.60% 2.61% 9/1/2029 $390,000.00 $357,946.88 FEDL HOME LOAN MTG CORP - 5 YEAR BOND 3132XFSR0 4.42% 4.71% 9/1/2029 $500,000.00 $494,687.50 FEDL NATL MTG ASSN - 5 YEAR BOND 340NWFK6 4.01% 4.37% 10/1/2029 $500,000.00 $492,656.25 FEDL NATL MTG ASSN - 5 YEAR BOND 3140HV4J0 2.14% 4.60% 10/1/2029 $550,000.00 $493,028.24 FEDL NATL MTG ASSN - 4 YEAR BOND 3140HWK50 2.67% 3.84% 11/1/2029 $500,000.00 $479,687.50 FEDL NATL MTG ASSN - 5 YEAR BOND 3140NXC50 4.56% 4.76% 1/1/2030 $500,000.00 $496,562.50 FEDL NATL MTG ASSN - 5 YEAR BOND 3140HW4G4 2.43% 4.75% 1/1/2030 $550,000.00 $493,281.25 FEDL HOME LOAN BANK BOND - 4.75 YEAR BOND 3132XFVC9 4.00% 4.00% 1/1/2030 $325,000.00 $321,140.63 FEDL HOME LOAN MTG CORP- 4.75 YEAR BOND 3132XFWC8 4.31% 4.31% 2/1/2030 $500,000.00 $500,000.00 FEDL HOME LOAN MTG CORP - 4.9 YEAR BOND 3132ZKYX9 4.15% 4.15% 3/1/2030 $500,000.00 $498,906.25 FEDL HOME LOAN MTG CORP - 4.9 YEAR BOND 3132XFWA2 3.75% 3.75% 3/1/2030 $500,000.00 $489,375.00 FEDL HOME LOAN MTG CORP- 4.8 YEAR BOND 313XFWS3 4.17% 4.12% 4/1/2030 $340,000.00 $339,681.25 FEDL NATL MTG ASSN - 5 YEAR BOND 314ONYPF2 4.25% 4.25% 6/1/2030 $500,000.00 $498,281.25 FEDL NATL MTG ASSN - 5 YEAR BOND 3140NYQL8 4.15% 4.15% 6/1/2030 $500,000.00 $498,125.00 FEDL NATL MTG ASSN - 5 YEAR BOND 3140NYXE6 4.24% 4.24% 7/1/2030 $500,000.00 $499,375.00 FNMA BOND - 5 YEAR BOND 3140J0JC5 4.07% 1.25% 7/1/2030 $550,000.00 $481,250.00 FEDL NATL MTG ASSN - 5 YEAR BOND 3140Q0A77 4.14% 4.14% 8/1/2030 $300,000.00 $299,812.50 FEDL HOME LOAN MTG CORP - 5 YEAR BOND 3132XHS47 3.25% 3.92% 9/1/2030 $500,000.00 $482,880.83 FEDL NATL MTG ASSN - 5 YEAR BOND 3136GASX8 3.75% 3.75% 9/18/2030 $500,000.00 $500,000.00 FEDL NATL MTG ASSN - 5 YEAR BOND 3140Q1PP9 3.93% 4.05% 12/1/2030 $275,000.00 $273,882.81 FEDL NATL MTG ASSN - 5 YEAR BOND 3140Q1DA5 3.99% 4.06% 12/1/2030 $1,000,000.00 $998,125.00 FEDL NATL MTG ASSN 5 YEAR BOND 3140Q1ZC7 4.03% 4.03% 1/1/2031 $500,000.00 $499,843.75 3140Q2EP9 3.77% 3.84% 2/1/2031 $500,000.00 $499,062.50
$15,251,284.87
BANK OF AMERICA - 5 YEAR BOND 06048WP20 1.25% 1.25% 9/24/2026 $250,000.00 $250,000.00 APPLE INC - 10 YEAR CORPORATE BOND 037833CR9 3.20% 3.30% 5/11/2027 $250,000.00 $248,850.00 SADDLEBACK VALLEY - 7.75 YEAR BOND (MUNICIPAL BOND) 786318LF0 2.40% 3.41% 8/1/2027 $250,000.00 $238,500.00 $737,350.00
FEDL NATL MTG ASSN - 5 YEAR DUS BOND
FEDL NATL MTG ASSN - DISC BOND - 3YEAR
FEDL NATL MTG ASSN - 2 YEAR BOND
FEDL HOME LOAN BANK - 5 YEAR BOND
FEDL FARM CREDIT BANK BOND - 5 YEAR BOND
CHIEF FINANCIAL FED CR UN - 2 YEAR BOND
FEDL NATL MTG ASSN- 5 YEAR BOND
TVI CD'S INVESTMENTS SUBTOTAL :
TVI MUNICIPAL BONDS SUBTOTAL :
TVI GOVERNMENT AGENCY BONDS SUBTOTAL :
FEDERAL FARM CR BKS CONS SYSTEMWIDE - 5 YEAR BOND
CALIFORNIA STATE - 5 YEAR BOND
FEDL HOME LOAN - 5 YEAR BOND
STIFEL GOVERNMENT SPONSORED ENTERPRISES (GSE) AGENCY BONDS INVESTMENTS SUBTOTAL:
STIFEL CORPORATE & MUNICIPAL BONDS SUBTOTAL:
CFG COMMUNITY BANK - 3.5 YEAR CD 12527CFL1 3.80% 3.80% 3/11/2026 $245,000.00 $245,000.00 ALASKA US FEDERAL CREDIT UNION - 3 YEAR CD 011852AH3 5.15% 5.15% 3/23/2026 $248,000.00 $248,000.00 COMENITY CAPITAL BANK- 4 YEAR CD 20033A2Z8 2.60% 2.60% 4/14/2026 $249,000.00 $249,000.00 BAXTER CR UN - 4 YEAR CD 07181JAD6 3.05% 3.05% 6/22/2026 $249,000.00 $249,000.00 INSPIRE FEDERAL CREDIT UNION - 3 YEAR CD 457731AQ0 5.00% 5.00% 6/30/2026 $248,000.00 $248,000.00 NEW YORK COMMUNITY BANK - 5 YEAR CD 649447UZ0 0.70% 0.70% 7/1/2026 $249,000.00 $249,000.00 SALLIE MAE BANK SALT LAKE CITY UT - 5 YEAR CD 795451AB9 1.00% 1.00% 7/21/2026 $248,000.00 $248,000.00 FIRST STATE BANK - 4 YEAR CD 33650TAH3 3.60% 3.60% 9/16/2026 $249,000.00 $249,000.00 QUORUM FED CR - 4 YEAR CD 74909LAB6 3.85% 3.85% 9/23/2026 $249,000.00 $249,000.00 PENTAGON FEDERAL CR UN - 5 YEAR CD CUSIP #70962LAS1 70962LAS1 0.90% 0.90% 9/29/2026 $249,000.00 $249,000.00 ONPATH FEDERAL CREDIT UN - 4 YEAR CD 68283MAF3 3.25% 3.25% 9/30/2026 $249,000.00 $249,000.00 HAWAII CENTRAL FCU - 3 YEAR CD 419700AG4 5.50% 5.50% 10/27/2026 $248,000.00 $248,000.00 BANK UNITED NA - 5 YEAR CD 066519RW1 1.35% 1.35% 12/8/2026 $248,000.00 $248,000.00 BANK HAPOALIM BM - 5 YEAR CD 06251A3K4 1.35% 1.35% 12/16/2026 $248,000.00 $248,000.00 CONNEXUS CREDIT UNION - 5 YEAR CD 20825WAR1 1.25% 1.25% 12/23/2026 $249,000.00 $249,000.00 AMERANT BANK - 5 YEAR CD 02357QAQ0 1.60% 1.60% 2/16/2027 $248,000.00 $248,000.00 PIMA CREDIT UNION- 4.5 YEAR CD 722000AA4 5.15% 5.15% 2/17/2027 $248,000.00 $248,000.00 METRO CREDIT UNION - 5 YEAR CD 59161YAP1 1.70% 1.70% 2/18/2027 $249,000.00 $249,000.00 BEAL BANK PLANO TEXAS - 5 YEAR CD 07371AZQ9 2.05% 2.05% 3/3/2027 $248,000.00 $248,000.00 BEAL BANK USA LAS VEGAS - 5 YEAR CD 07371CK81 2.05% 2.05% 3/3/2027 $248,000.00 $248,000.00 SPOKANE TEACHERS CR 849061AF3 4.75% 4.75% 3/25/2027 $249,000.00 $249,000.00 MORGAN STANLEY- 5 YEAR CD 61773TDN0 3.00% 3.00% 4/29/2027 $246,000.00 $246,000.00 GENERATION BANK ROGERS AR CD - 5 YEAR CD 37149CAV9 3.10% 3.10% 5/6/2027 $249,000.00 $249,000.00 DEPARTMENT OF COMMERCE - 5 YEAR CD 24951TAT2 3.25% 3.25% 5/13/2027 $249,000.00 $249,000.00 RADIFI FEDERAL CREDIT UNION - 2 YEAR CD 75034WAA9 4.00% 4.00% 5/13/2027 $249,000.00 $249,000.00 FIRST FED SVGS - 3 YEAR CD 32023HBT4 5.25% 5.25% 6/28/2027 $248,000.00 $248,000.00 CALDWELL BT CO - 2 YEAR CD 128829AQ1 4.00% 4.00% 6/30/2027 $245,000.00 $245,000.00 TRUSTONE FINL CR UN - 5 YEAR CD 89841MAF4 3.40% 3.40% 7/19/2027 $249,000.00 $249,000.00 BMO HARRIS BANK - 5 YEAR CD 05600XHE3 3.55% 3.55% 7/27/2027 $247,000.00 $247,000.00 THIRD FEDL S&L ASSN - 5 YEAR CD 88413QDM7 3.40% 3.40% 7/27/2027 $245,000.00 $245,000.00 CMNTY COMMERCE BANK CLAREMONT- 5 YEAR CD 20367GBH1 3.30% 3.30% 8/10/2027 $249,000.00 $249,000.00 ST VINCENT MED CTR CR - 5 YEAR CD 85279AAA0 3.50% 3.50% 8/12/2027 $249,000.00 $249,000.00 PITTSBURG CITY HALL FCU - 5 YEAR CD 72500MAA3 3.60% 3.60% 8/16/2027 $249,000.00 $249,000.00 SHARONVIEW FCU - 5 YEAR CD 819866BL7 3.50% 3.50% 8/16/2027 $249,000.00 $249,000.00 GHS FEDERAL CREDIT UNION - 5 YEAR CD 36266LAA4 3.80% 3.80% 9/15/2027 $249,000.00 $249,000.00 OKLAHOMA EDUCATORS CR - 2 YEAR CD 67885MAE0 3.65% 3.65% 10/4/2027 $249,000.00 $249,000.00 VALLEY NAT BANK - 2.5 YEAR CD 919853QW4 4.20% 4.20% 12/23/2027 $244,000.00 $244,000.00 SOUTHPOINT BANK - 3 YEAR CD 84464PCC9 4.00% 4.00% 4/28/2028 $249,000.00 $249,000.00 SOUND CREDIT UNION - 4 YEAR CD 83616HAH7 4.15% 4.15% 6/2/2028 $249,000.00 $249,000.00 MEDALLION BANK - 3 YEAR CD 58404DXY2 4.10% 4.10% 6/30/2028 $249,000.00 $249,000.00 NEW ORLEANS FIREMANS FCU - 5 YEAR CD 647608AH1 5.00% 5.00% 7/17/2028 $248,000.00 $248,000.00 NUMERICA CREDIT UNION - 5 YEAR CD 67054NBK8 5.10% 5.10% 7/31/2028 $248,000.00 $248,000.00 SOUTHWEST FINAL FED - 3 YEAR CD 84485EAN7 4.00% 4.00% 8/15/2028 $249,000.00 $249,000.00 GREEN STATE CREDIT UNION- 5 YEAR CD 39573LEL8 5.00% 5.00% 8/29/2028 $248,000.00 $248,000.00 RIA FEDERAL CREDIT UNION - 3 YEAR CD 749622BX3 4.00% 4.00% 10/13/2028 $249,000.00 $249,000.00 CIVIC FEDERAL CREDIT UNION - 3.25 YEAR CD 178808AB7 4.10% 4.10% 10/23/2028 $249,000.00 $249,000.00 ALLIANT CREDIT UNION- 5 YEAR CD 01882MAH5 5.35% 5.35% 11/15/2028 $248,000.00 $248,000.00 SAN FRANCISCO FEDL CR UNION - 4 YEAR CD 79772FAL0 4.25% 4.25% 11/27/2028 $249,000.00 $249,000.00 SKYLA FEDL CREDIT UNION - 3.5 YEAR CD 83086XAE0 4.10% 4.10% 11/30/2028 $249,000.00 $249,000.00 MAINE SAVINGS - 3.5 YEAR CD 560507AU9 4.00% 4.00% 1/30/2029 $249,000.00 $249,000.00 OPTUM BANK - 4 YEAR CD 68405VDC0 4.00% 4.00% 4/30/2029 $245,000.00 $245,000.00 TRUIST BANK - 5 YEAR CD 897926BG5 4.45% 4.45% 4/30/2029 $245,000.00 $245,000.00 MORGAN STANLEY PVT - 5 YEAR CD 61776NRX3 4.15% 4.15% 5/7/2029 $244,000.00 $244,000.00 BMW BANK OF NORTH AMERICA - 4 YEAR CD 05612LER9 4.00% 4.00% 5/9/2029 $245,000.00 $245,000.00 TEXAS EXCHABGE BANK - 4 YEAR CD 88241TWS5 3.60% 3.60% 10/5/2029 $249,000.00 $249,000.00 AMOCO Federal Credit Union 31424AAM2 4.00% 4.00% 12/17/2029 $249,000.00 $249,000.00
CANADAIGUA NATL B & T - 4 YEAR CD 137141BJ5 3.95% 3.95% 1/18/2030 $249,000.00 $249,000.00 PARKSIDE FINANCIAL B & T 4 YEAR CD 70147AGT5 3.90% 3.90% 1/28/2030 $249,000.00 $249,000.00 JP MORGAN CHASE BANK - 5 YEAR CD 46657VWH9 4.75% 4.75% 1/31/2030 $248,000.00 $248,000.00 FARMERS & MERCHANTS BANK- 4 YEAR CD Callable 307811MZ9 3.90% 3.90% 2/11/2030 $249,000.00 $249,000.00 AMERICAN EXPRESS NATIONAL BANK - 5 YEAR CD 02589AGX4 4.15% 4.15% 3/26/2030 $244,000.00 $244,000.00 A+ FEDERAL CREDIT UNION - 5 YEAR CD 00224TAS5 4.15% 4.15% 3/28/2030 $249,000.00 $249,000.00 CITIBANK SIOUX BANK - 5 YEAR CD 17290GCM7 4.25% 4.25% 7/21/2030 $244,000.00 $244,000.00 CREDIT HUMAN FED CR UN - 5 YEAR CD 22537MAJ6 3.65% 3.65% 9/30/2030 $249,000.00 $249,000.00 FIRST FEDL BANK - 5 YEAR CD 32022WEF9 3.75% 3.75% 10/17/2030 $249,000.00 $249,000.00 HOLYOKE CR - 5 YEAR CD 43666MAD8 3.95% 3.95% 11/5/2030 $249,000.00 $249,000.00 BNY MELLON - 5 YEAR CD 05614FCH4 3.65% 3.65% 11/19/2030 $245,000.00 $245,000.00 $16,614,000.00
$48,390,866.71
$78,447,001.16
Amount % of Portfolio Amount % of Portfolio
$2,139,064.80 3% $ 37,748,044.18 48%
$12,753,763.90 16% $ 14,608,352.46 19%
$15,163,305.75 19% $ 26,090,604.52 33%
$16,261,513.33 21% $ 78,447,001.16 100%
$13,787,353.38 18%
$18,342,000.00 23% 3.83%
$78,447,001.16 100% 1.74
Michael O'Brien Administrative Services Director/City Treasurer Prepared by: Lindsay McHugh
Type
TOTAL CD's/GSE BONDS/ CORPORATE BONDS/TREASURY BILLS
TOTAL OF ALL INVESTMENTS
STIFEL CD'S INVESTMENT SUBTOTAL:
LOCAL AGENCY INVESTMENT FUND (LAIF)
INVESTMENTS BY TYPE INVESTMENTS BY MATURITY
CHECKING & MONEY MARKET ACCOUNTS/CASH ON HAND/ CASH
HELD FOR INVESTMENT
Maturity Range
1 Day to 1 Yr.
1 Yr. to 3 Yrs.
The above investments have met the requirements as stated in the City's Annual Investment Policy.
CALTRUST
GSE AGENCY BONDS
CORPORATE & MUNICIPAL BONDS
NEGOTIABLE CERTIFICATES OF DEPOSIT
TOTAL OF ALL INVESTMENTS Weighted Average Maturity in Years Weighted Average Yield
3 Yrs. to 5 Yrs.
Total
ATTACHMENT 2
Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of March 24, 2026
From: Brad McKinney, City Manager
Prepared by: Michael O'Brien, Director of Administrative Services Subject: Authorize the City Manager to Enter into an Agreement with LSL, LLP for Independent Auditing Services
____________________________________________________________________________
SUMMARY
Staff is requesting authorization to enter into an agreement with LSL, LLP for Independent Auditing Services for a period of three years with renewal options for years four and five based on the attached scope of services.
RECOMMENDATION
Staff recommends that the City Council:
• Authorize the City Manager or his designee to execute an agreement with LSL, LLP, approved by the City Attorney, for up to three years with renewal options for years four and five based on the pricing outlined in the attached scope of services.
GOVERNMENT CODE §84308 APPLIES:
https://leginfo.legislature.ca.gov
No
FISCAL IMPACT
The proposed contract for Auditing Services with LSL CPA’s is broken down as follows:
Report 2025-26 2026-27 2027-28
Optional
2028-29
Optional
2029-30
ACFR Audit & Related
Reports $48,710 $48,710 $50,170 $50,170 $51,680
Single Audit (if required) $5,550 $5,550 $5,720 $5,720 $5,890
Authorization to Enter into an Engagement Letter with LSL, LLP for Independent Auditing Services Page 2
For the Meeting of March 24, 2026
Gann Limit AUP $510 $510 $530 $530 $550
Housing Successor Audit $2,000 $2,000 $2,060 $2,060 $2,120 Measure W Audit $3,160 $0 $0 $0 $0
Out-of-Pocket Expense Included Included Included Included Included Subtotal for Fiscal Year $59,930 $56,770 $58,480 $58,480 $60,240 Former Client Discount ($2,990) ($2,830) ($2,920) ($2,920) ($3,010) Total for Fiscal Year $56,940 $53,940 $55,560 $55,560 $57,230 The Housing Successor Audit would be charged to fund 034 (Housing Successor).
The Measure W Audit would be charged to fund 78 (Measure W).
A Single Audit is only necessary if the City expends $1,000,000 in Federal Grants. $2,500 of the audit expenses is charged to the Proposition A fund for the portion of the audit attributed to Metro funds.
$6,000 of the audit expenses is charged to the Successor agency for the portion of the audit attributed to auditing the Successor Agency activity.
The remaining $43,280 in year one would be expensed to the general fund, which would be reduced to $37,730 if a single audit is not necessary.
The final option year would increase to $46,610 which could be reduced to $40,720 if a single audit is not required.
BACKGROUND
The City of San Dimas is required to obtain an independent financial audit each fiscal year in accordance with Government Auditing Standards and other applicable federal and state requirements.
Independent auditors review the City’s financial statements, internal controls, and compliance with applicable laws and regulations, and provide an opinion regarding the fair presentation of the City’s financial statements.
The City has historically contracted with external auditing firms to perform these services.
RAMS has served as the City’s independent auditor over the past five years. As part of the City’s periodic review of professional services and in response to the increased cost proposal from RAMS, staff evaluated alternative firms capable of providing the required auditing services.
DISCUSSION/ANALYSIS
The City has had a wonderful experience with RAMS CPA’s for the past five years and have enjoyed our partnership with the firm and would welcome them to bid on providing auditing services for the City in the future. RAMS CPA’s assisted the City in reaching its goal of
Authorization to Enter into an Engagement Letter with LSL, LLP for Independent Auditing Services Page 3
For the Meeting of March 24, 2026
producing an award winning Annual Comprehensive Financial Report and helped improve our internal controls and practices.
The decision to make a change to LSL, LLP was not made lightly. The decision was not only based on pricing alone, but also considered the benefits of having a different firm evaluate our systems, controls and procedures in order to assure that the City is performing at the highest levels of financial reporting.
In the five years the City has retained RAMS CPA’s as its auditing firm, LSL, LLP has added new partners, acquired additional auditing firms and have advanced their systems to provide first class services to its clients. The new partners offer a fresh perspective that will help the City of San Dimas and its financial operations.
Additionally, LSL, LLP is a full-service accounting firm specializing in governmental auditing and consulting services. The firm has extensive experience auditing municipalities, counties, and special districts throughout California and currently serves more than 100 public sector clients.
Several key factors support the recommendation to transition to LSL:
1. Cost Control and Predictable Pricing
The proposed engagement with LSL provides competitive pricing and predictable annual audit costs over the next three fiscal years. This will assist the City in maintaining stable operating budgets while continuing to meet all required financial reporting obligations.
2. Experience with Municipal Governments
LSL specializes in governmental auditing and performs financial statement audits in accordance with Generally Accepted Government Auditing Standards (GAGAS) and the Uniform Guidance for federal programs, ensuring the City remains compliant with regulatory requirements.
3. Familiarity with the City
LSL previously served as the City’s independent auditor. Because of this prior experience, the firm is already familiar with:
-The City’s accounting systems and financial reporting practices -The structure of the City’s funds and internal controls -The City’s Annual Comprehensive Financial Report (ACFR) preparation process This familiarity will significantly reduce the transition time typically required when engaging a completely new audit firm.
4. Efficient Transition
Transitioning to a firm that has previously audited the City allows for:
-Reduced onboarding time
-Faster understanding of City financial processes
-Improved audit efficiency during the first year of the engagement By contrast, engaging a completely new audit firm would require additional time for the firm to learn the City’s financial structure and reporting environment.
Authorization to Enter into an Engagement Letter with LSL, LLP for Independent Auditing Services Page 4
For the Meeting of March 24, 2026
5. Professional Qualifications
LSL was established in 1929 and has grown into a nationally recognized accounting firm with:
-15 partners and more than 165 employees
-Extensive experience auditing cities and special districts -Peer review ratings indicating compliance with professional standards The firm performs audits in accordance with Government Auditing Standards and regularly assists clients with ACFR preparation and regulatory reporting requirements.
ALTERNATIVES
The City Council may elect to deny authorization to enter into an agreement with LSL, LLP and recommend pursuing an agreement with RAMS CPA, which would come with a higher cost for services, or ask that staff consider another firm entirely.
ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.
Respectfully submitted,
Michael O'Brien
Director of Administrative Services
Attachments:
1. San Dimas Engagement Letter
2. Scope of Services
LSLCPAS.COM
March 12, 2026
To: Michael O’Brien, Administrative Services Director
City of San Dimas
245 E. Bonita Ave.
San Dimas, CA 91773
We are pleased to confirm our understanding of the services we are to provide for the City of San Dimas, California (hereafter, the City) for the year ended June 30, 2026.
Audit Scope and Objectives
We will audit the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information, including the disclosures, which collectively comprise the basic financial statements, of the City as of and for the year ended June 30, 2026. Additionally, we will perform an audit of the stand-alone financial statements for the Measure W Storm Water special revenue fund.
Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the City’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City’s RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited:
1) Management’s Discussion and Analysis.
2) Budgetary comparison schedules for the General Fund and any major special revenue funds 3) GASB-required supplementary pension schedules
4) GASB-required supplementary other postemployment benefits (OPEB) schedules ATTACHMENT 1
City of San Dimas
We have also been engaged to report on supplementary information other than RSI that accompanies the City’s financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole or in a separate written report accompanying our auditors’ report on the financial statements or in a report combined with our auditors’ report on the financial statements, depending on the presentation of the supplementary information. 1) Schedule of expenditures of federal awards (SEFA), if applicable Single Audit thresholds are met 2) Combining and individual fund statements and schedules In connection with our audit of the basic financial statements, we will read the following other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 1) Information presented in the introductory section of the Annual Comprehensive Financial Report (ACFR) 2) Information presented in the statistical section of the ACFR The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor’s report that includes our opinions about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. The objectives also include reporting on:
• Internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards.
• If applicable Single Audit thresholds are met, internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Auditors’ Responsibilities for the Audit of the Financial Statements and, if applicable, Single Audit We will conduct our audit in accordance with GAAS and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. If applicable Single Audit thresholds are met, we will also conduct our audit in accordance with the Single Audit Act Amendments of 1996; and the provisions of the Uniform Guidance, and will include tests of accounting records, a determination of major program(s) in accordance with Uniform Guidance, and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit.
City of San Dimas
We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government.
Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements or noncompliance may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required by Government Auditing Standards or, if applicable, for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors.
In connection with this engagement, we may communicate with you or others via email transmission. As emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information.
We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for a reasonable period of time.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories (if relevant), and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement and they may bill you for responding to this inquiry.
We may, from time to time and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers.
City of San Dimas
Audit Procedures—Internal Control
We will obtain an understanding of the government and its environment, including the system of internal control, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.
If applicable Single Audit thresholds are met, and as required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and, if appliable, the Uniform Guidance.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance, and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
If the City is subject to Single Audit requirements, the Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the City’s major programs. For federal programs that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement identifies as being subject to audit. The purpose of these procedures will be to express an opinion on the City’s compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance.
City of San Dimas
Responsibilities of Management for the Financial Statements and, if applicable, Single Audit Our audit will be conducted on the basis that you acknowledge and understand your responsibility for (1) designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements, SEFA, and all accompanying information in conformity with accounting principles generally accepted in the United States of America; and for compliance with applicable laws and regulations (including federal statutes), rules, and the provisions of contracts and grant agreements (including award agreements). Your responsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness of that information.
You are also responsible for making drafts of financial statements, SEFA, all financial records, and related information available to us; for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers); and for the evaluation of whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for the 12 months after the financial statements date or shortly thereafter (for example, within an additional three months if currently known). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit under the Uniform Guidance; (3) additional information that we may request for the purpose of the audit; and (4) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements; SEFA; federal award programs; compliance with laws, regulations, contracts, and grant agreements; and related matters.
Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants. You are also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report. Additionally, as required by the Uniform Guidance, it is management’s responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan. The summary schedule of prior audit findings should be available for our review at the start of scheduled testwork.
City of San Dimas
If the City is subject to Single Audit requirements, you are responsible for identifying all federal awards received and understanding and complying with the compliance requirements and for the preparation of the SEFA (including notes and noncash assistance received, and COVID-19-related concepts, such as lost revenues, if applicable) in conformity with the Uniform Guidance. You agree to include our report on the SEFA in any document that contains, and indicates that we have reported on, the SEFA. You also agree to [include the audited financial statements with any presentation of the SEFA that includes our report thereon OR make the audited financial statements readily available to intended users of the SEFA no later than the date the SEFA is issued with our report thereon]. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the SEFA in accordance with the Uniform Guidance; (2) you believe the SEFA, including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the SEFA.
You are also responsible for the preparation of the other supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles (GAAP). You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to [include the audited financial statements with any presentation of the supplementary information that includes our report thereon OR make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon]. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information.
Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information.
Other Services
We will also assist in preparing the financial statements, SEFA (if applicable), and related notes of the City in conformity with accounting principles generally accepted in the United States of America and the Uniform Guidance based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards.
We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statements, SEFA, and related notes services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.
You agree to assume all management responsibilities for the financial statements, SEFA (if applicable), and related notes, and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements, the SEFA, and related notes and that you have reviewed and approved the financial statements, the SEFA, and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.
City of San Dimas
Examination Engagements
As part of our contract with the City, certain examination engagements have been requested to be performed within the scope of services for the year ended June 30, 2026. They are identified as follows:
1) Compliance with California Health and Safety Code Applicable to California Housing Successor Agencies You have requested LSL, LLP to examine the City’s compliance with the requirements of California Health and Safety Code Applicable to California Housing Successor Agencies (the Specified Requirements). 1) Compliance with the relevant County of Los Angeles Code of Ordinances sections related to the Safe, Clean Water Program.
You have requested LSL, LLP to examine the City’s compliance with relevant County of Los Angeles Code of Ordinances sections related to the Safe, Clean Water Program. (the Specified Requirements).
Auditors’ Responsibilities for Examination Engagements
We will examine the City’s compliance with the above Specified Requirements in accordance with attestation standards established by the AICPA and in relation to the requirements specified in the legislation (the Criteria).
At the conclusion of our engagement(s), we will issue a written report of our examination of compliance with the Specified Requirements in relation to stated or established Criteria. Our report will be addressed to those charged with governance of the City. We cannot guarantee that an unmodified opinion on compliance with the Specified Requirements will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion, or withdraw from the engagement.
The attestation standards require that we perform our examination engagement only if we have reason to believe that the compliance with the Specified Requirements is capable of consistent measurement or evaluation against criteria that are suitable and available to users. If circumstances arise relating to the condition of the City’s records, the availability of appropriate evidence or indications of a significant risk of material misstatement of compliance with the Specified Requirements because of error, fraudulent financial reporting or misappropriation of assets that, in our professional judgment, prevent us from completing the engagement or forming an opinion, we retain the unilateral right to take any course of action permitted by professional standards, including declining to express an opinion or issue a report, or withdrawing from the engagement.
Because of the inherent limitations of an examination engagement, together with the inherent limitations of controls, an unavoidable risk exists that some material misstatements may not be detected, even though the examination is properly planned and performed in accordance with the attestation standards.
The services that we will perform are not designed and cannot be relied upon to disclose errors, fraud or illegal acts, should any exist. However, we will inform the appropriate level of management and those charged with governance of any material errors that come to our attention and any fraud or illegal acts that come to our attention, unless they are clearly inconsequential.
Furthermore, the services were not designed to provide assurance on the effectiveness of internal control. However, we will communicate to management and those charged with governance any deficiencies in internal control that become known to us during the course of the engagement.
We will maintain our independence in accordance with the standards of the AICPA and Government Auditing Standards.
City of San Dimas
Management’s Responsibilities for Examination Engagements Management is responsible for:
1) Identifying applicable compliance requirements
2) Selecting the Criteria for the purposes of evaluating compliance with the Specified Requirements 3) Determining that the stated or established Criteria is appropriate for the purposes of evaluating compliance with the Specified Requirements
4) Establishing and maintaining effective internal control over compliance with the Specified Requirements 5) Evaluating and monitoring the City’s compliance with the Specified Requirements and providing us with a written assertion thereon
6) Specifying reports that satisfy legal, regulatory or contractual requirements 7) Making all records and related information available to us 8) Providing us with a written management representation letter confirming certain representations made during the course of the engagement
9) The design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the entity involving management, employees who have significant roles in internal control, and others where the fraud could have a material effect on compliance with the Specified Requirements; an
10) Informing us of its knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, or others Agreed-Upon Procedures Engagements
As part of our contract with the City, certain agreed-upon procedures engagements have been requested to be performed within the scope of services for the year ended June 30, 2026. They are identified as follows:
1) Appropriations Limit
You have requested LSL, LLP to perform specific agreed-upon procedures with respect to the calculation of the City’s Appropriations Limit (GANN limit), in accordance with Article XIII-B of the California Constitution (the Subject Matter). The City is responsible for the Subject Matter. The specific procedures to be performed are included as an attachment to this Engagement Letter.
Independent Accountants’ Responsibilities for Applying Agreed-Upon Procedures Our engagement will be conducted in accordance with attestation standards established by the AICPA. Because the procedures included in the attachment to this Engagement Letter do not constitute an examination or review, the objective of which is the expression of an opinion or conclusion, respectively, we will not express an opinion or any other form of assurance thereon and if additional procedures were to be performed, other matters might have come to our attention.
At the conclusion of our engagement, we will submit a report in letter form outlining the procedures performed and our findings resulting from the procedures performed.
City of San Dimas
Our report will contain a statement that it is intended solely for the use of the City and should not be used by those who have not agreed to the procedures and taken responsibility for the appropriateness of the procedures for their purposes.
If circumstances arise relating to the condition of the City’s records, the availability of appropriate evidence that, in our professional judgment, prevent us from completing the engagement, we retain the unilateral right to take any course of action permitted by professional standards, including declining to express our findings or issue a report, or withdrawing from the engagement.
The procedures that we will perform are not designed and cannot be relied upon to disclose errors, fraud or illegal acts, should any exist. However, we will inform the appropriate level of management and those charged with governance of any material errors that come to our attention and any fraud or illegal acts that come to our attention, unless they are clearly inconsequential.
We will maintain our independence in accordance with the standards of the AICPA and Government Auditing Standards.
Management’s Responsibilities for Agreed-Upon Procedures Engagements The appropriateness of the procedures included in the attachment is solely the responsibility of the City We make no representation regarding the appropriateness of the procedures described above, either for the purpose for which these services have been requested or for any other purpose. Management is responsible for:
1) Providing to us, prior to the conclusion of the engagement, written acknowledgment that the attached procedures are appropriate for the intended purpose of this engagement 2) Providing to us, at the conclusion of the engagement, a representation letter in accordance with attestation standards established by the AICPA
3) The design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the Subject Matter that is free from material misstatement, whether due to fraud or error 4) The design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the City involving management, employees who have significant roles in internal control, and others where the fraud could have a material effect on the Subject Matter 5) Informing us of its knowledge of any allegations of fraud or suspected fraud the City received in communications from employees, former employees, analysts, regulators, or others Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing.
We will schedule the engagement based in part on deadlines, working conditions, and the availability of your key personnel. We will plan the engagement based on the assumption that your personnel will cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving supporting documents, and preparing confirmations. If, for whatever reason, your personnel are unavailable to provide the necessary assistance in a timely manner, it may substantially increase the work we have to do to complete the engagement within the established deadlines, resulting in an increase in fees over our original fee estimate.
City of San Dimas
If subject to Single Audit requirements, at the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management’s responsibility to electronically submit the reporting package (including financial statements, SEFA, summary schedule of prior audit findings, auditor’s reports, and corrective action plan) along with the Data Collection Form to the Federal Audit Clearinghouse. We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ reports or nine months after the end of the audit period.
We will provide copies of our reports to the City; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection.
The audit documentation for this engagement is the property of LSL, LLP and constitutes confidential information.
However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to your federal cognizant agency or oversight agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of LSL, LLP’s personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by your federal cognizant agency, oversight agency, or pass-through entity. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.
Ryan Domino, CPA, is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. We expect to begin our audit in May 2026.
Our all-inclusive, not-to-exceed fee for these services is $56,940. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. The City may select one of two payment options for our fees. The first manner of payment is an upfront payment for the services to be rendered, less a 10% retention. This payment is due and will be invoiced upon execution of this engagement letter. We will apply a 5% discount to the overall audit fee for up-front payments. The second method of payment is that 90% of the total fees are invoices in equal, monthly installment payments commencing from the month of execution of this engagement letter through December 2026. If the installment payment method is selected, if the scope of work is concluded earlier than December, the remaining balance becomes due and payable and will be invoiced upon completion of the scope of work. Under both methods of payment, the final 10% retention is due and payable upon completion of the scope of work. Invoices for other deliverables (such as the Single Audit) are presented as work progresses and are payable upon presentation. Our invoices for these fees are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 45 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. Our fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will keep you informed of any problems we encounter, and our fees will be adjusted accordingly. Unless specific billing terms are already agreed-upon in our existing contract or professional services agreement with you, one of these invoicing and payment options must be selected for 2026 services.
City of San Dimas
As an attest client, LSL, LLP cannot retain your documents on your behalf. This is in accordance with the ET 1.295.143 of the AICPA Code of Professional Conduct. The City is responsible for maintaining its own data and records.
LSL, LLP utilizes portals, including ShareFile and CaseWare Collaborate, as a means of exchanging information and deliverables with our attest clients. These portals are used solely as a method of exchanging information and is not intended to store the City’s information. At the end of the engagement, LSL, LLP will provide the City with an electronic copy (unless otherwise specified in our contract with the City) of deliverables and data related to the engagement from the portals.
Upon completion of the engagement, data and other content will either be removed from the portals or become unavailable to LSL, LLP. within a reasonable time frame (6 months).
You may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter.
Reporting
We will issue written reports upon completion of our audits. Our reports will be addressed to the City Council of the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor’s report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement.
If circumstances occur related to the condition of your records, the availability of sufficient, appropriate audit evidence, or the existence of a significant risk of material misstatement of the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, which in our professional judgment prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course of action permitted by professional standards, including declining to express an opinion or issue reports, or withdrawing from the engagement.
The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters will state that (1) the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. If applicable, the Uniform Guidance report on internal control over compliance will state that the purpose of the report on internal control over compliance is solely to describe the scope of testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Both reports will state that the report is not suitable for any other purpose.
You have requested that we provide you with a copy of our most recent external peer review report and any subsequent reports received during the contract period. Accordingly, our 2022 peer review report accompanies this letter.
City of San Dimas
We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the attached copy and return it to us.
Very truly yours,
LSL, LLP
RESPONSE:
This letter correctly sets forth the understanding of the City Signature:
Name:
Date:
Payment Option Selection: Up-front ______ Installment ______
Exhibit A
APPROPRIATIONS LIMIT PROCEDURES
1. We will obtain the completed Worksheets No. 1 through No. 7 (or other alternative computations) and compare the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We will also compare the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.
2. For the accompanying Appropriations Limit Worksheet No. 6, we will multiply line A, last year's limit, by line D, ratio of change, and agree the resulting amount to line E, this year's limit.
3. We will compare the current year’s information presented in the accompanying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above.
4. We will compare the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.
LSL, LLP’s Terms and Conditions Addendum
This addendum to the engagement letter describes our standard terms and conditions (“Terms and Conditions Addendum”) related to our provision of services to you. This addendum, and the accompanying engagement letter, comprise your agreement with us (“Agreement”). If there is any inconsistency between the engagement letter and this Terms and Conditions Addendum, the engagement letter will prevail to the extent of the inconsistency.
For the purposes of this Terms and Conditions Addendum, any reference to “firm,” “we,” “us,” or “our” is a reference to LSL, LLP, and any reference to “you,” or “your” is a reference to the party or parties that have engaged us to provide services. References to “Agreement” mean the engagement letter or other written document describing the scope of services, any other attachments incorporated therein, and this Terms and Conditions Addendum.
Billing and Payment Terms
Our firm’s practice may require payment of a retainer upon execution of this Agreement. You agree that the retainer will be earned as our professional time to complete the engagement is incurred. The retainer will be applied to the final billing, and any unused balance will be refunded at the end of the engagement.
We will bill you for our professional fees and out-of-pocket costs. Payment is due upon receipt of the invoice. Failure to pay timely will result in interest charges of 1.5% per month (18% annually) on the unpaid balance. You have thirty 30 days from the invoice date to review the invoice and to communicate to us, in writing, any disagreement with the charges, after which you waive the right to contest the invoice.
In accordance with our firm policies, we reserve the right to suspend or terminate our work for non-payment of fees.
In the event that work is discontinued, either temporarily or permanently, as a result of delinquent payment, we shall not be liable for any damages you may incur as a result of the work stoppage. Work will be suspended if your account becomes 45 days or more overdue and will not be resumed until your account is paid in full. Work will be terminated if your account balance becomes 180 days overdue. If our work is suspended or terminated, you assume all risk associated with your failure to meet governmental and other deadlines, for any penalties or interest that may be assessed against you resulting from your failure to meet such deadlines, and for any other damages (including but not limited to consequential, indirect, lost profits, or punitive damages) incurred as a result of the suspension or termination of our services.
Termination and Withdrawal
We reserve the right to withdraw from the engagement without completing services for non-payment of fees, your failure to comply with the terms of this Agreement, or as we determine professional standards require. If our work is suspended or terminated, you agree that we will not be responsible for your failure to meet governmental and other deadlines, or for any liability, including but not limited to, penalties or interest that may be assessed against you resulting from your failure to meet such deadlines.
If this Agreement is terminated before services are completed, you agree to compensate us for the services performed and expenses incurred through the effective date of termination.
Proprietary Information
You acknowledge that proprietary information, documents, materials, management techniques and other intellectual property are a material source of the services we perform and were developed prior to our association with you. Any new forms, software, documents or intellectual property we develop during this engagement for your use shall belong to us, and you shall have the limited right to use them solely within your business. All reports, templates, manuals, forms, checklists, questionnaires, letters, agreements and other documents which we make available to you are confidential and proprietary to us. Neither you, nor any of your agents, will copy, electronically store, reproduce or make available to anyone other than your personnel, any such documents. This provision will apply to all materials whether in digital, “hard copy” format or other medium.
Conflicts of Interest
If we, in our sole discretion, believe a conflict of interest has arisen affecting our ability to deliver services to you in accordance with either the ethical standards of our firm or the ethical standards of our profession, we may be required to terminate our services without issuing our work product.
Client Portals
To enhance our services to you, we will utilize client portals. These are collaborative, virtual workspaces in a protected, online environment. Client portals permit real-time collaboration across geographic boundaries and time zones and allows LSL, LLP and you to share data, engagement information, knowledge, and deliverables in a protected environment. In order to use one of our portals, you may be required by the provider of the portal to execute a client portal agreement and agree to be bound by the terms, conditions, and limitations of such agreement. You agree that we have no responsibility for the activities of the portal provider and agree to indemnify and hold us harmless with respect to any and all claims arising from or related to the operation of the portal.
LSL, LLP is not a host for any of your information. You are responsible for maintaining your own copy of this information. We do not provide back-up services for any of your data or records, including information we provide to you. Portals are utilized solely as a method of transferring data and are not intended for the storage of your information. Information on a portal may be deleted by LSL, LLP.
If you decide to transmit your confidential information to us in a manner other than a secure portal, you accept responsibility for any and all unauthorized access to your confidential information. If you request that we transmit confidential information to you in a manner other than a secure portal, you agree that we are not responsible for any liability, including but not limited to, (a) any loss or damage of any nature, whether direct or indirect, that may arise as a result of our sending confidential information in a manner other than a secure portal, and (b) any damages arising as a result of any virus being passed on or with, or arising from any alteration of, any email message.
Third-Party Service Providers or Subcontractors
We may use third-party service providers, subcontractors, commercially-available artificial intelligence, or software tools, some of which may utilize or offer artificial intelligence capabilities, (collectively, “external party” or “external parties”), to assist us where necessary to help provide professional services to you or support the needs of our firm.
You consent to our use of external parties. Our firm remains responsible for exercising reasonable care in providing our services, and our services and work product will be subjected to our firm's customary quality procedures.
We may provide your confidential information to external parties in support of our services. You consent to the disclosure of your confidential information to those external parties. We take reasonably prudent business care consistent with our professional standards to prevent the unauthorized release of your confidential information.
In certain circumstances, we may require a separate, written consent from you before your information is transmitted to an external party or parties.
Records Management
Record Retention and Ownership
We will return any original records and documents you provide to us. Our copies of your records and documents are solely for our documentation purposes and are not a substitute for your own record-keeping obligations under any applicable laws or regulations. You are responsible for maintaining complete and accurate books and records, which may include financial statements, schedules, tax returns and other deliverables provided to you by us. If we provide deliverables or other records to you via an information portal, you must download this information within 30 days. Professional standards may preclude us from being the sole repository of your original data, records, or information.
Workpapers and other items created by us to support the delivery of our services are our property and will remain in our control. We will consider requests for copies of workpapers and other items created by us in accordance with the AICPA Code of Professional Conduct. Our workpapers will be maintained by us in accordance with our firm’s record retention policy and any applicable legal and regulatory requirements.
Our firm destroys workpaper files after a period of 7 years. Catastrophic events or physical deterioration may result in damage to or destruction of our firm’s records, causing the records to be unavailable before the expiration of the retention period, as stated in our record retention policy.
Working Paper Access Requests by Regulators and Others
State, federal and foreign regulators may request access to or copies of certain workpapers pursuant to applicable legal or regulatory requirements. Requests also may arise with respect to peer review, an ethics investigation, the sale of your organization, or the sale of our accounting practice. If requested, access to such workpapers will only be provided under the supervision of firm personnel. Regulators may request copies of selected workpapers to distribute the copies or information contained therein to others, including other governmental agencies.
If we receive a state, federal or foreign regulatory request, we agree to inform you of it as soon as practicable unless we are prohibited from doing so by applicable laws or regulations. You may, within the time permitted for our firm to respond to any request, initiate such legal action as you deem appropriate, at your sole expense, to attempt to limit the disclosure of information. If you take no action within the time permitted for us to respond, or if your action does not result in a judicial order protecting us from supplying requested information, we may construe your inaction or failure as consent to comply with the request.
If we are not a party to the proceeding in which the information is sought, you agree to reimburse us for our professional time and expenses, as well as the fees and expenses of our legal counsel, incurred in responding to such requests.
Summons or Subpoenas
All information you provide to us in connection with this engagement will be maintained by us on a confidential basis.
If we receive a summons or subpoena which our legal counsel determines requires us to produce documents from this engagement or testify about this engagement, provided that we are not prohibited from doing so by applicable laws or regulations, we agree to inform you of such summons or subpoena as soon as practicable. You may, within the time permitted for our firm to respond to any request, initiate such legal action as you deem appropriate, at your sole expense, to attempt to limit discovery. If you take no action within the time permitted for us to respond, or if your action does not result in a judicial order protecting us from supplying requested information, we may construe your inaction or failure as consent to comply with the request.
If we are not a party to the proceeding in which the information is sought, you agree to reimburse us for our professional time and expenses, as well as the fees and expenses of our legal counsel, incurred in responding to such requests.
Confidentiality
In providing services to you, we may require information that is considered confidential and may include Personally Identifiable Information (PII), i.e. information that can be used to distinguish or trace an individual’s’ identity such as address, bank account and social security information. We will maintain all client information, including PII, on a confidential basis and have a duty to do so based on the standards promulgated by the American Institute of Certified Public Accountants as well as applicable laws and regulations. You assume the risk of loss if you provide us with information, including PII, which differs from the information we request in order to provide services to you in accordance with the Agreement.
Referrals
In the course of providing services to you, you may request referrals to products or professionals such as attorneys, brokers, or investment advisors. As a courtesy, we may identify professional(s) or product(s) for your consideration.
However, you are responsible for evaluating, selecting, and retaining any professional or product and determining if the professional or product meets your needs. You agree that we will not oversee the activities of and have no responsibility for the work product of any professional or suitability of any product we refer to you or that you separately retain. Further, we are not responsible for any services we perform that fail to meet the intended outcomes as a result of relying on the services of other professionals or products you may retain.
Limitations on Oral and Email Communications
We may discuss with you our views regarding the treatment of certain items or decisions you may encounter. We may also provide you with information in an email. Any advice or information delivered orally or in an email (rather than, for example, through a memorandum delivered as an email attachment that is a deliverable of a separate engagement) will be based upon limited research and a limited discussion and analysis of the underlying facts. Additional research or a more complete review of the facts may affect our analysis and conclusions.
Due to these limitations and the related risks, it may not be appropriate to proceed with a decision solely on the basis of any oral or email communication from us. You accept all responsibility for any liability, including but not limited to additional tax, penalties or interest resulting from your decision (i) not to have us perform the research and analysis necessary to reach a more definitive conclusion and (ii) to instead rely on an oral or email communication. The limitation in this paragraph will not apply to an item of written advice that is a deliverable of a separate engagement. If you wish to engage us to provide formal advice on a matter on which we have communicated orally or by email, we will confirm this service in a separate agreement.
Brokerage, or Investment Advisory Statements or Digital Asset Tax Return Information If you provide our firm with copies of brokerage or investment advisor statements, or digital asset tax return information, we will use the information solely for the purpose described in the Engagement Objective and Scope section of this Agreement. We will rely on the accuracy of the information provided in the statements and will not undertake any action to verify this information. We will not monitor transactions, investment activity, provide investment advice, or supervise the actions of the entity or individuals entering into transactions or investment activities on your behalf. We recommend that you receive and carefully review all statements upon receipt, and direct any questions regarding account activity to your banker, broker, or investment advisor.
Disclaimer of Legal and Investment Advice
Our services under this Agreement do not constitute legal or investment advice unless specifically engaged to provide investment advice in the Engagement Objective and Scope section of this Agreement. We recommend that you retain legal counsel and investment advisors to provide such advice.
Electronic Data Communication and Storage
In the interest of facilitating our services to you, we may send data over the Internet, temporarily store electronic data via computer software applications hosted remotely on the Internet, or utilize cloud-based storage. In using these data communication and storage methods, our firm employs measures designed to maintain data security.
We use reasonable efforts to keep such communications and electronic data secure in accordance with our obligations under applicable laws, regulations, and professional standards.
You recognize and accept that we have no control over the unauthorized interception or breach of any communications or electronic data once it has been transmitted or if it has been subject to unauthorized access while stored, notwithstanding all reasonable security measures employed by us. You consent to our use of these electronic devices and applications during this engagement.
Marketing and Educational Communications
We may send newsletters, emails, updates, explanations of technical developments or similar communications to you. These communications are of a general nature and should not be construed as professional advice. We may not send all such communications to you. These communications, by themselves, do not create a contractual relationship between us and you, a binding obligation for us to provide services to you, nor a requirement on our part to monitor issues for you.
Federally Authorized Practitioner – Client Privilege
Internal Revenue Code §7525, Confidentiality Privileges Related to Taxpayer Communication, provides a limited confidentiality privilege applying to tax advice embodied in taxpayer communications with federally authorized tax practitioners in certain limited situations.
This privilege is limited in several important respects. For example, the privilege may not apply to your records, state tax issues, state tax proceedings, private civil litigation proceedings, or criminal proceedings.
While we will cooperate with you with respect to the privilege, asserting the privilege is your responsibility.
Inadvertent disclosure of otherwise privileged information may result in a waiver of the privilege. Please contact us immediately if you have any questions or need further information about this federally authorized practitioner-client privilege.
Dispute Resolution
If a dispute arises out of or relates to this Agreement, including the scope of services contained herein, or the breach thereof, and it cannot be settled through negotiation, the parties agree first to try to settle the dispute by mediation administered by the American Arbitration Association (“AAA”) under the AAA Accounting and Related Services Arbitration Rules and Mediation Procedures before resorting to arbitration, litigation, or any other dispute resolution procedure. The mediator will be selected by mutual agreement of the parties. If the parties cannot agree on a mediator, a mediator shall be designated by the AAA. The mediation will be conducted in California.
The mediation will be treated as a settlement discussion and, therefore, all discussions during the mediation will be confidential. The mediator may not testify for either party in any later proceeding related to the dispute. No recording or transcript shall be made of the mediation proceedings. The costs of any mediation proceedings shall be shared equally by all parties. Any costs of legal representation shall be borne by the hiring party.
This provision shall not apply to any dispute of fees owed, billed or due.
If any dispute, controversy, or claim cannot be resolved by mediation, then the dispute, controversy, or claim will be settled by arbitration in accordance with the American Arbitration Association’s Accounting and Related Services Arbitration Rules and Mediation Procedures. Such arbitration shall be binding and final. In agreeing to arbitration, we both acknowledge that each of us is giving up the right to have the dispute decided in a court of law before a judge or jury and instead we are accepting the use of arbitration for resolution.
Limitation of Liability
LSL, LLP’s liability for all claims, damages, and costs arising from negligent acts, errors, or omissions committed by us in the performance of this engagement is limited to 3 times the total amount of fees paid by you to LSL, LLP for the service giving rise to this liability.
Limitation of Damages
Notwithstanding anything to the contrary in this agreement, LSL, LLP shall not be liable for any lost profits, indirect, special, incidental, punitive, consequential, or similar damages, to the extent such damages may be lawfully limited or excluded, of any nature even if we have been advised by you of the possibility of such damages.
Indemnification of LSL, LLP
The following is applicable to audit and attest engagements only:
You agree to hold us harmless from any and all claims which arise from knowing misrepresentations to us, or the intentional withholding or concealment of information from us by your management. You also agree to indemnify us for any claims made against us by third parties, which arise from any of these actions by your management. The provisions of this paragraph shall apply regardless of the nature of the claim.
The following applies to non-attest engagements only:
Unless otherwise stated in the Agreement, you agree to indemnify, defend, and hold harmless LSL, LLP and any of its partners, principals, shareholders, officers, directors, members, employees, agents or assigns with respect to any and all claims made by third parties arising from this engagement, regardless of the nature of the claim, and including the negligence of any party, excepting claims arising from the gross negligence or intentional acts of LSL, LLP.
Statute of Limitations
You agree that any claim arising out of this Agreement shall be commenced within 3 year(s) of the delivery of the work product to you, regardless of any longer period of time for commencing such claim as may be set by law. A claim is understood to be a demand for money or services, the service of a suit, or the institution of arbitration proceedings against LSL, LLP.
Insurance
LSL, LLP shall, during the term of the engagement, maintain in full force and effect, accountants’ professional liability insurance coverage from an insurer or insurers licensed to conduct business in the state of California. As of the policy effective date, such insurer or insurers shall be rated A- (Excellent), by A.M. Best with a Financial Size Category of Class VII or greater. Premiums for said insurance policy shall be paid by LSL, LLP.
Upon your written request, LSL, LLP shall furnish certificates of insurance for the required insurance coverage.
Such certificate of insurance shall indicate the minimum limits of liability per claim and in the aggregate, as required by you.
Independent Contractor
When providing services to your company, we will function as an independent contractor and in no event will we or any of our employees be an officer of you, nor will our relationship be that of joint venturers, partners, employer and employee, principal and agent, or any similar relationship giving rise to a fiduciary duty to you.
Our obligations under this Agreement are solely obligations of LSL, LLP, and no partner, principal, employee, or agent of LSL, LLP shall be subjected to any personal liability whatsoever to you or any person or entity.
Severability
If any portion of this Agreement is deemed invalid or unenforceable, said finding shall not operate to invalidate the remainder of the terms set forth in this Agreement.
Survivability
The following sections of this Terms and Conditions Addendum shall survive termination of the Agreement:
Limitation of Liability, Limitation of Damages, Indemnification, and Statute of Limitations.
Assignment, No Third Party Beneficiaries
All parties acknowledge and agree that the obligations and responsibilities of this Agreement cannot be assigned to any third party except as agreed to in writing. This Agreement has been entered into solely between you and LSL, LLP, and no third-party beneficiaries are created hereby.
Force Majeure
Neither party shall be held liable for any delays resulting from circumstances or causes beyond our reasonable control, including, without limitation, fire or other casualty, act of God, strike or labor dispute, war or other violence, epidemics or pandemics as defined by The Centers for Disease Control and Prevention, or any law, order or requirement of any governmental agency or authority. However, no Force Majeure event shall excuse you of any obligation to pay any outstanding invoice or fee or from any indemnification obligation under this Agreement.
Electronic Signatures and Counterparts
Each party hereto agrees that any electronic signature intended to replicate a written signature, shall be presumed valid, and we may reasonably rely upon it. For purposes hereof, “electronic signature” includes, but is not limited to, a scanned copy of a manual signature, an electronic copy of a manual signature affixed to a document, a signature incorporated into a document utilizing touchscreen capabilities, or a digital signature. Documents may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement.
Firm Associations
The firm is a member of PrimeGlobal, the association of advisory and accounting firms. No PrimeGlobal member firm is an agent or partner of the association or of any other member firm. No PrimeGlobal member firm has the authority to enter into any legal obligations on behalf of the association or any other member firm. If the firm introduces you to another PrimeGlobal member firm, this firm specifically denies any liability for any work performed by that firm. You should make your own contractual arrangements with that firm for work that they perform. The fact that you may have been introduced to us by another PrimeGlobal member firm does not make that firm, its partners, or its employees responsible for any of our acts or omissions.
The firm is not the agent or partner of PrimeGlobal or any other member firm, and does not have the authority to enter into legal obligations on behalf of either the association or any other member firm thereof. You agree that this firm has the sole liability for any work performed under this engagement and you undertake not to make any claim or bring any proceedings against either PrimeGlobal or any other member of PrimeGlobal in relation to work covered by this engagement.
Entire Agreement
This Agreement, including this Terms and Conditions Addendum, represents the entire agreement of the parties and supersedes all previous oral, written or other understandings and agreements between the parties. Any modification to the terms of this Agreement must be made in writing and signed by both parties. This Agreement has been entered into solely between you and LSL, LLP, and no third-party beneficiaries are created hereby.
THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION. You and the firm agree that any dispute between us relating to our services shall be submitted to formal mediation and, if not resolved, mandatory, binding, and confidential arbitration. We specifically direct your attention to the Dispute Resolution provision on page 5 of our Terms and Conditions Addendum
Very truly yours,
Accepted:
Signature:
Name:
Entity Name (If Relevant):
Date:
1849W.RedlandsBlvd.,#102,Redlands,CA 92373 ·P.O.Box8847Redlands,CA92375 s Tel909-792-1852 ·Fax909-792-2015 Patrick D. Spafford, CPA
Todd C. Landry, CPA
Licensed by the California Board of Accountancy
0HPEHU
$PHULFDQ,QVWLWXWHRI&HUWLÞHG3XEOLF$FFRXQWDQWV
Report on the Firm's System of Quality Control
To Lance, Soll & Lunghard, LLP
and the Peer Review Committee of the California Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Lance, Soll & Lunghard, LLP (the firm) in effect for the year ended May 31, 2022. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards).
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a system review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported on in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Firm's Responsibility
The firm is responsible for designing and complying with a system of quality control to provide the firm with reasonable assurance of performing and reporting in conformity with the requirements of applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported on in conformity with the requirements of the applicable professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design and compliance with the firm's system of quality control based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act and employee benefit plan audits.
As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. -1-
1849 W. Redlands Blvd., #102, Redlands, CA 92373 · P.O. Box 8847 Redlands, CA 92375 s Tel 909-792-1852 · Fax 909-792-2015 Opinion
In our opinion, the system of quality control for the accounting and auditing practice of Lance, Soll & Lunghard, LLP in effect for the year ended May 31, 2022, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency (ies), or fail. Lance, Soll & Lunghard, LLP has received a peer review rating of pass.
March 30, 2023
-2-
PREPARED BY
LSL, LLP
Certified Public Accountants
License Number 2584
City of San Dimas
Scope of Services
Date of Submission: March 12, 2026
Valid for 90 Days
Authorized by:
Ryan Domino, CPA, Partner
[email protected]
500 Technology Drive
Suite 350
Irvine, CA 92618
(949) 829 - 8299
ATTACHMENT 2
City of San Dimas
Scope of Services
1 www.lslcpas.com | 1
March 12, 2026
City of San Dimas
Attn: Michael O’Brien, MAM, CPFO
Delivered Via Email: [email protected]
Dear Mr. O’Brien,
LSL, LLP (“LSL”, “LSL CPAs”) is pleased to present our scope of services, and we value the opportunity to demonstrate our professional qualifications and commitment to excellence to the City of San Dimas (“City”).
This scope of services showcases our firm’s experience, knowledge, and creative problemsolving capabilities in governmental auditing. LSL’s Core Services focus on serving midsize cities and special districts through a variety of specialized offerings. We concentrate in highquality audits aligned with GAAS and current GASB pronouncements and prioritize accuracy and thoroughness while ensuring timely service and report delivery. Our commitment to effective collaboration and transparency with the City ensures the integrity of its financial reporting and compliance with all regulatory requirements.
We welcome the opportunity to discuss any aspect of this scope of services to ensure your complete satisfaction.
Sincerely,
Ryan Domino, CPA, Partner
LSL, LLP
500 Technology Drive
Suite 350
Irvine, CA 92618
(714) 592-1814
City of San Dimas
Scope of Services
2 www.lslcpas.com | 2
About LSL
HISTORY & SIZE
LSL, LLP (“LSL”) is a limited liability partnership and is not a wholly owned subsidiary of a parent company. LSL was established in 1929 and has grown as a leader in the government sector.
Our full-service accounting firm is headquartered in Irvine, California, with a dynamic team of 15 partners, 4 principals, and 165 employees. We provide auditing, accounting, and consulting services to over 100 municipal clients, including counties, cities, water and electric utility districts, and special-purpose government agencies.
Our government sector services encompass a broad range of specialties, including attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services.
License to Practice in California
LSL is a public accounting firm licensed by the State of California Department of Consumer Affairs as a Public Accounting Partnership. Additionally, we are members of the American Institute of Certified Public Accountants (AICPA) and the California Society of Certified Public Accountants (CalCPA). All key members assigned to this engagement are licensed or are in the process of obtaining their license as Certified Public Accountants by the State of California.
Independence
LSL meets the independence requirements set forth by the Government Auditing Standards.
Our partners have no ownership in any other business organization that currently or will potentially provide services, supplies, materials, or equipment to the City. We annually distribute a listing of our firm's clients to all employees to ensure that any possible independence threats are properly documented and reviewed.
Business License
LSL affirms that we will obtain and maintain active business licensure with the City of San Dimas upon award of contract.
Insurance
LSL confirms that we will maintain the minimum insurance requirements throughout the entire term of engagement. Evidence of coverage is provided in Attachment A, and the actual insurance form will be provided upon the award of contract.
Peer Review
Our firm has participated in the AICPA Peer Review Program since its inception. All our peer reviews have covered governmental engagements and have received pass ratings. Our most recent peer review conducted by Spafford and Landry CPAs is provided in Attachment B.
City of San Dimas
Scope of Services
3 www.lslcpas.com | 3
Desk Review / Disciplinary Action
There have been no disciplinary actions against our organization since its inception. There have been no litigations against our firm in the past three years. Our Single Audit reports are desk reviewed either by the federal cognizant agency or the State Controller’s Office acting as the Oversight Agency. LSL has never had a report rejected by any of these agencies and is highly regarded and recognized by the staff of the State Controller’s Office for top-quality reports.
LOCATION - OUR OFFICES
Irvine, CA
500 Technology Drive, Suite 350
Irvine, CA 92618
Phone: (949) 829-8299
Sacramento, CA
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
Phone: (916) 503-9691
Phoenix Metropolitan Area, AZ
950 W. Elliot Rd., Suite 110
Tempe, AZ 85284
Phone: (480) 424-7855
The Woodlands, TX
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
Phone: (936) 828-4587
The virtual footprint of our government team spans across the United States. At LSL, we regularly share staff and resources across our offices, providing you with access to our entire governmental team. This approach ensures that you receive the highest level of industryspecialized service while maintaining a streamlined, reliable audit and comprehensive coverage.
LSL’S GOVERNMENT TEAM RESOURCES
Our governmental staff consists of three (3) Partners, one (1) Director, four (4) Senior Managers, four (4) Managers, nine (9) Supervisors, and twenty (20) Professional Staff.
LSL does not subcontract any portion of our audits. All staff assigned to the audit portion of the engagement are employed by LSL on a full-time basis and have extensive experience providing auditing services for cities, counties, and special-purpose government agencies. However, LSL does collaborate with a third-party for the preparation of the SCO (State Controller's Office) reports to ensure that the reports are prepared and filed correctly and timely by experts in those reports.
CORE SERVICES
Audit Services
This includes financial statement audits in accordance with Government Auditing Standards, single audits of federal award programs and other attestation engagement-type services for governments, commercial entities, and not-for-profits.
City of San Dimas
Scope of Services
4 www.lslcpas.com | 4
Advisory Services
We provide GASB implementation assistance, Uniform Guidance and federal award program advisory services, and unique agreed-upon procedures tailored to meet specific client needs including items such as internal control reviews.
Internal Support Services
We provide internal support services to help clients manage revenue sources, such as transient occupancy tax, franchise fees, and transient parking taxes. We also assist clients by providing oversight of their departments, including internal audits to provide assurance that departments within the organization are following policies, procedures, and internal controls.
Financial Reporting Services
Assisting finance departments with financial reporting including ACFR, Financial Transactions Reports for the State Controller’s Office, and other financial reporting. Additionally, we partner with Workiva to provide financial reporting software implementations including building budget books, ACFR preparation and financial reporting in the Workiva ecosystem.
Training Services & LSL Seminars
LSL offers a comprehensive suite of training options including written materials, in-person, online and webinars covering both current topics and foundational concepts. These programs are tailored towards finance department teams to ensure that both clients and staff are informed and prepared in governmental accounting and auditing with continued support throughout. We regularly lead instructional sessions and learning opportunities in financial reporting, internal control risk assessments, and the latest GASB updates delivering the most current information and ideas that impact your industry. These opportunities are made available through our firm to the City for professional development or continuing professional education credits. Some of the topics include:
Uniform Guidance
(UG) Updates GASB Updates Addressing Staffing
Challenges
ERP
Implementation
Panel
LSL Back to Basics
Series:
Back to Basics topics include:
GASB 101: Compensated Absences
Capital Assets
Bank Reconciliations
Pension & OPEB
Accounts Receivable
A/P, Accrued Liabilities, and Long-Term Debt
Leases & SBITAS
For upcoming webinars, please visit https://lslcpas.com/webinars/.
City of San Dimas
Scope of Services
5 www.lslcpas.com | 5
Segment 2
Year-end Testing will
begin in September, or
earlier, if possible.
Exit Conference will
be held on the last day
of fieldwork.
Entrance
Conference will be
held before interim
begins.
Segment 1
Interim Testing will
take place in May or
June.
October
Segment 3
Draft Audit Letters
and Other Reports
will be provided to
the City in October.
Final ACFR Report
and Approval will be
delivered to the City in
November.
Delivery of Financial
Statements and
Presentation of
Financials - LSL will
be available as
requested to present
the results of the
financial audit.
May - June September November
GOVERNMENT AUDITING STANDARDS
LSL understands its responsibilities to perform audits and issue opinions on the City’s financial statements as well as its fair presentation. Our financial audits are performed in accordance with the Generally Accepted Government Auditing Standards (GAGAS) issued by the Comptroller General of the United States, and our Single Audits are performed in accordance with the requirements of the Uniform Guidance. We will also evaluate the City's internal control system and provide recommendations for growth and improvement.
PROJECT SCHEDULE
LSL assumes under the time requirements that the City will have closed its books and will present the LSL team with general ledger balances that are auditable prior to the start of fieldwork. A sample timeline is provided on the following page displaying the key stages of the audit and the deliverables.
City of San Dimas
Scope of Services
6 www.lslcpas.com | 6
LEVEL OF STAFF ASSIGNED AND NUMBER OF HOURS TO BE ASSIGNED Hours proposed are for one (1) major program.
PROPOSED AUDIT TEAM
Resumes for the proposed team can be found on in Attachment C – Team Resumes. [COST SHEET ON THE FOLLOWING PAGE]
Segment/Task Partner Manager Senior Staff Total
ACFR Audit and Related Reports
Interim test work 0 0 20 40 60
Year-End test work 0 0 60 110 170
Report/Review/Supervision 20 50 0 0 70
Subtotal 20 50 80 150 300
Single Audit (if required) *
Test work 0 0 9 19 28
Report/Review/Supervision 2 5 0 0 7
Subtotal 2 5 9 19 35
Gann Limit AUP
Test work 00011
Report/Review/Supervision 0 1 1 0 2
Subtotal 0 1 1 1 3
Housing Successor Audit
Test work 00347
Report/Review/Supervision 1 2 0 0 3
Subtotal 1 2 3 4 10
Measure W Audit
Test work 0 0 5 11 16
Report/Review/Supervision 1 3 0 0 4
Subtotal 1 3 5 11 20
TOTAL PROPOSED HOURS: 24 61 98 185 368
TOTAL PROPOSED HOURS
City of San Dimas
Scope of Services
7 www.lslcpas.com | 7
ALL-INCLUSIVE MAXIMUM PRICE BY REPORT
*Price includes one (1) major program. Each additional program is $2,500.
STANDARD BILLING RATES
*The quoted fees above include a standard 3% increase beginning in FY27-28.
Position 2025-26 2026-27 2027-28
Optional
2028-29
Optional
2029-30
Partner $384 $384 $396 $396 $408
Director $302 $302 $311 $311 $321
Senior Manager $267 $267 $275 $275 $284
Manager $228 $228 $235 $235 $243
Supervisor $205 $205 $211 $211 $218
Senior Accountant $163 $163 $168 $168 $174
Experienced Staff $137 $137 $141 $141 $146
Staff Accountant $124 $124 $128 $128 $132
Clerical $72 $72 $74 $74 $77
City of San Dimas
Scope of Services
8 www.lslcpas.com | 8
MANNER OF PAYMENT
LSL's offers two manners of payment to our government audit clients. The first manner of payment is an upfront payment for the services to be rendered, less a 10% retention. This payment is due upon execution of the professional services agreement or the engagement letter.
We apply an additional 5% discount to the overall audit fee for up-front payments. The second method of payment is that 90% of the total fees are invoiced in equal, monthly installment payments commencing from the month the professional services agreement or engagement letter is executed and scheduled to conclude December each year. If the installment payment method is selected, if the scope of work is concluded earlier than December of each year, the remaining balance becomes due and payable upon completion of the annual scope of work.
Under both methods, the final 10% retention is due and payable upon completion of the scope of work. The peripheral reports (e.g., the Single Audit and Appropriations Limit) are invoiced upon completion of the scope of work. Invoices will not be provided on a more than monthly interval.
City of San Dimas
Scope of Services
9 www.lslcpas.com | 9
LSL Highlights: Awards & Values
Ranked #17 on the Orange
County Business Journal’s
CPA Firm Book of Lists
Established
in 1929
15 Partners
4 Principals
165 Employees
(and growing!)
Accounting Today Regional Leader
LSL has again been recognized as an Accounting Today Regional Leader in 2025. The list ranks the top CPA firms that have shown exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions.
INSIDE Public Accounting Award
LSL is honored to be recognized among the Top 300 accounting firms in the nation by INSIDE Public Accounting! Each year, IPA ranks CPA firms based on net revenue, and LSL proudly advanced from #220 in 2024 to #201 in 2025.
Our fantastic team and the trust of our valued clients are the driving force behind this upward momentum and continued growth.
Best of Accounting Award
LSL has consistently secured the ClearlyRated Best of Accounting award since 2019. This exclusive program awards accounting firms who demonstrate highlevel service of excellence within the accounting industry and solely leverages statistically validated survey responses from our clients.
Our Core Values
Our values weren’t decided on by management and handed down. Every member of the LSL team worked together to share what values matter most to us. From there, we came up with the following five core values that embody how we approach each other, our work, and our clients.
City of San Dimas
Scope of Services
10 www.lslcpas.com | 10
Attachment A – Insurance
City of San Dimas
Scope of Services
11 www.lslcpas.com | 11
City of San Dimas
Scope of Services
12 www.lslcpas.com | 12
Attachment B – Peer Review Report
City of San Dimas
Scope of Services
13 www.lslcpas.com | 13
City of San Dimas
Scope of Services
14 www.lslcpas.com | 14
Attachment C – Team Resumes
Ryan Domino, CPA, Partner
ENGAGEMENT PARTNER
ACHIEVEMENTS
Ryan currently serves as a technical reviewer for the Government Finance Officers Association (GFOA), and has been a presenter for CSMFO’s annual conference and various chapter meetings. He has been involved with teaching current audit and accounting-related material at LSL’s in-house training seminars, and annual GASB Update.
CONTINUING EDUCATION
As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Ryan meets the requirements for Government Auditing Standards in governmental CPE.
EXPERIENCE
Ryan has over 11 years of experience in governmental auditing including financial statement audits, preparation of Annual Comprehensive Financial Reports, Housing Successor compliance audits, TDA compliance audits, Single Audits, Federal Student Financial Aid audits, and various consulting and agreed-upon procedures projects.
Ryan is one of the firm’s leaders in ensuring audit quality control and Government Practice training for staff. He is a regular presenter at the firm’s annual GASB Update where he has presented training to our clients on the latest GASB pronouncements and has been a presenter for CSMFO’s chapter meetings and the annual CSFMO Conference.
Some of his presentations have covered:
General auditing in accordance with GAGAS
Accounting for capital assets
GASB Statement Nos. 89, 90, 91, 94, 100, 101, and 102 Fraud risks and internal controls
MEMBERSHIPS
AICPA, CalCPA, CSMFO, GFOA, GFOAT
EDUCATION
Bachelor of Arts Degree in Business Administration, with an emphasis in Accounting – California State University, Fullerton
LICENSES &
CERTIFICATIONS
Certified Public Accountant
California
Texas
AICPA Advanced
Single Audit Certificate
AUDIT ENGAGEMENTS
City of Agoura Hills, CA
City of Big Bear Lake, CA
City of Brea, CA
City of Burbank, CA
City of Carlsbad, CA
City of Cathedral City, CA
City of Chino Hills, CA
City of Dana Point, CA
City of Kress, TX
City of La Quinta, CA
City of Lompoc, CA
City of Monrovia, CA
City of Moorpark, CA
City of Oceanside, CA
City of Orange, CA
City of Palm Desert, CA
City of Rialto, CA
City of Rosemead, CA
City of San Clemente, CA
City of San Juan Capistrano, CA
City of Santa Monica, CA
Monterey Peninsula Airport District
Orange County Water District
Orchard Dale Water District
Rainbow Municipal Water District
San Bernardino Muni. Water Dept.
Three Valleys Muni. Water District
United Water Conservation District
Yorba Linda Water District
City of San Dimas
Scope of Services
www.lslcpas.com | 15
1 Brandon Young, CPA, Partner/ COO
CONCURRING PARTNER
ACHIEVEMENTS
Brandon is an expert in Governmental Accounting and Auditing, with over 13 years of experience serving a wide range of clients. He is appointed to serve on the prestigious AICPA State and Local Government Expert Panel, with a three-year the term that began in May of 2023, and also has served on the CalCPA Governmental Accounting and Auditing Committee since 2018.
CONTINUING EDUCATION
As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Brandon meets the requirements for Government Auditing Standards in governmental CPE.
EXPERIENCE
Brandon has performed all phases of governmental audits with numerous presentations to City Councils, Board of Supervisors, Board of Directors, and Audit Committees over the past thirteen years. He routinely presents at CSMFO, local chapter meetings and CalSACA on current accounting and auditing material. He also regularly teaches current audit and accountingrelated material at LSL training seminars, webinars, and client education workshops and training events.
His work has entailed:
The preparation of the ACFR for entities involved in CSMFO and GFOA in the U.S.
Audit review and technical assistance throughout the year to deliver the most up-to-date information with current GASB pronouncements Presentation of audit results to Audit Committees or others charged with governance
Risk assessment and evaluation of internal controls with COSO and Federal Green Book
Single Audits in accordance with new Uniform Guidance
MEMBERSHIPS
AICPA, AICPA SLG Expert Panel CalCPA, CalCPA State GAA, CSMFO, GFOA
EDUCATION
Bachelor of Arts Degree in Accounting, Magna Cum Laude – Vanguard University
LICENSE
Certified Public Accountant
California
ENGAGEMENTS
City of Chula Vista
City of Citrus Heights
City of Dixon
City of Lodi
City of Galt
City of Livingston
City of Menlo Park
City of Newark
City of Pasadena
City of Pleasanton
City of Riverside
City of Roseville
City of Santa Monica
City of Shafter
Coachella Valley Water District
County of Placer
County of Nevada
County of Sutter
County of Yolo
East Bay Municipal Utility District
GDPUD
Inland Empire Utilities Agency
Monterey Peninsula Airport District
Orange County Water District
San Joaquin Council of Gov.
Santa Clarita Valley Water Agency
Union Sanitary District
City of San Dimas
Scope of Services
www.lslcpas.com | 16
Chloe Zabrek, MPAc, CPA, Manager
AUDIT MANAGER
ACHIEVEMENTS
Chloe is an experienced auditor specializing in state and local government audits, fund accounting, and compliance audits. She began her career at LSL as an Associate Auditor and has advanced to the role of a Manager. In this capacity, Chloe leads her team and every audit engagement with a strong commitment to accuracy and compliance with both regulatory and professional standards, while focusing on the quality and effectiveness of the audit engagement.
CONTINUING EDUCATION
120 total hours over the last three years, 100 of which were in governmental accounting and auditing subjects. Chloe meets the requirements of governmental CPE Government Auditing Standards.
EXPERIENCE
With 6 years of experience in governmental auditing, Chloe has honed her expertise in all phases of government audits, including ACFR audits, housing authority audits, Transportation Development Act audits, Air Pollution Districts, State department audit, and Single Audits.
Her work has entailed:
Assisting in the preparation of the Annual Comprehensive Financial Report (ACFR)
Performing analytical and substantive audit procedures on account balances
Supervising the nature, timing and extent of procedures involved in the audit process as well as Junior Staff
Assisting clients with the preparation and review of GASB 68, 75, 87, and 96 journal entries
Review of capital asset, debt service, federal and state award schedules
EDUCATION
Bachelor of Arts in Business Administration
with an emphasis in Accounting – Seattle University
Master of Professional Accountancy – University of California, Davis
LICENSE
Certified Public Accountant
California
ENGAGEMENTS
County of Butte
County of El Dorado
City of Diamond Bar
City of Rancho Cucamonga
City of Redondo Beach
City of Roseville
City of San Juan Capistrano
City of Vallejo
South Coast Air Quality District
Engagements at CLA
County of Butte
County of Calaveras
County of El Dorado
County of Glenn
County of Humboldt
County of Kern
County of Lake
County of Mendocino
County of Monterey
County of Placer
County of San Bernadino
County of San Joaquin
County of San Luis Obispo
County of Shasta
County of Stanislaus
County of Tehama
County of Trinity
County of Yuba
City of Benicia
City of Porterville
City of Redding
California Housing Finance Agency
California Infrastructure and Economic
Development Bank
California Cannabis Authority
Eastern Sierra Transit Authority
Sacramento Law Library
San Luis Obispo APCD
City of San Dimas
Scope of Services
www.lslcpas.com | 17
Debbie Perez, Senior
AUDIT IN-CHARGE
ACHIEVEMENTS
Debbie is a skilled and dedicated senior auditor with a comprehensive understanding of all audit procedures and the ability to identify and resolve complex issues. As an experienced auditor, Debbie plays a crucial role in ensuring accuracy and compliance with both regulatory and professional standards, while focusing on the quality and effectiveness of the audit engagement.
CONTINUING EDUCATION
As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Debbie meets the requirements for Government Auditing Standards in governmental CPE.
EXPERIENCE
With 3 years of experience in governmental auditing, Debbie has honed her expertise in all phases of government audits, including ACFR audits, successor agency audits, and Single Audits.
Her work has entailed:
Assisting in the preparation of the Annual Comprehensive Financial Report (ACFR)
Performing analytical and substantive audit procedures on account balances
Planning the nature, timing and extent of procedures involved in the audit process
Assisting clients with the preparation and review of GASB 68, 75, 87, and 96 journal entries
Review of capital asset, debt service, federal and state award schedules
EDUCATION
Bachelor’s Degree in Accounting and Business/Management – University of California, Riverside
LICENSE
CPA: In-Progress
ENGAGEMENTS
Citrus Heights Water District
City of Diamond Bar
City of Livingston
City of Newark
City of Sutter Creek
County of Nevada - Dept of Insurance
Grant
County of Placer - Treasury
Examination
Mesa Water District
MOVE Stanislaus Transportation, Inc.
City of San Dimas
Scope of Services
www.lslcpas.com | 18
Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of March 24, 2026
From: Brad McKinney, City Manager
Prepared by: Cindy Balderas, Human Resources Manager
Subject: Adopt Ordinance 1335 to Amend the Contract with the California Public Employees’ Retirement System to Include PEPRA Language
____________________________________________________________________________
SUMMARY
Adoption of Ordinance 1335 would amend the City’s contract with the California Public Employees’ Retirement System (CalPERS) to include required Public Employees’ Pension Reform Act (PEPRA) language.
RECOMMENDATION
Staff recommends that the City Council:
• Adopt Ordinance 1335 authorizing an amendment to the contract between the City Council of San Dimas and the Board of Administration of the California Public Employees’ Retirement System (CalPERS).
GOVERNMENT CODE §84308 APPLIES:
https://leginfo.legislature.ca.gov
No
FISCAL IMPACT
There is no fiscal impact for the recommended action.
BACKGROUND
At a regular meeting of the City Council on February 24, 2026, Council voted 5-0 to approve Resolution 2026-15 a resolution of intention to approve an amendment to the contract with CalPERS to add PEPRA language and introduced Ordinance 1335 authorizing an amendment to the CalPERS contract.
Adopt Ordinance 1335 to Amend the Contract with the California Public Employees’ Retirement System to Include PEPRA Language Page 2
For the Meeting of March 24, 2026
The California Public Employees’ Pension Reform Act (PEPRA) became effective in January of 2013 to address unfunded public pension liabilities across the state. The California Public Employees’ Pension Reform Act (PEPRA) became effective in January of 2013 to address unfunded public pension liabilities across the state. PEPRA introduced significant structural changes to the retirement and health benefits of CalPERS members, including the establishment of compensation limits and the categorization of members into “new members” and “classic members”.
As part of PEPRA, in 2013 CalPERS implemented state-mandated benefit formulas that increased minimum retirement ages and reduced benefit multipliers for all “new” miscellaneous (non-safety) and safety members. As defined by PEPRA, “new” members include: i) those who are new hires who have joined CalPERS for the first time on or after January 1, 2013 and who have no prior membership in another California public retirement system and ii) those who joined CalPERS prior to January 1, 2013, but after this date are hired by a different CalPERS employer following a break in service of more than six months.
At the time of PEPRA’s implementation, no formal contract amendment was required for CalPERS contracting agencies because PEPRA’s requirements apply as a matter of state law. However, since then, CalPERS is now requesting that contracting agencies formally update their agreements to reflect PEPRA compliance.
DISCUSSION/ANALYSIS
CalPERS contacted the City at the end of 2025 requesting the City consider amending the retirement contract with CalPERS to incorporate the specific language reflecting the statutory provisions outlined under PEPRA.
Updating the retirement contract to include PEPRA provisions is essential for legal compliance, administrative consistency, and transparency. While PEPRA reforms have been in effect since 2013, older contracts lack specific references, creating risks of confusion, disputes, and potential litigation. Aligning contract language with current CalPERS practices ensures accurate benefit administration, simplifies audits and personnel decisions, and provides clarity for employees and stakeholders. This update reflects best practices already adopted by many public agencies, mitigating legal and financial risks while promoting clear communication and operational efficiency.
CalPERS is requesting that all outstanding agencies execute these formal amendments within the next year. Approving this amendment is an administrative update that ensures the City’s contract accurately reflects the current legal requirements and retirement tiers already in practice.
ALTERNATIVES
The Council could elect not to amend the agreement; however, this would result in the City not being in compliance with CalPERS regulations and can increase the likelihood of costly misunderstandings or litigation related to pension benefits.
ENVIRONMENTAL REVIEW
Adopt Ordinance 1335 to Amend the Contract with the California Public Employees’ Retirement System to Include PEPRA Language Page 3
For the Meeting of March 24, 2026
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.
Respectfully submitted,
Cindy Balderas
Human Resources Manager
Attachments:
1. Ordinance 1335
2. Exhibit - Amendment to Contract
ATTACHMENT 1
ORDINANCE 1335
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN DIMAS,
COUNTY OF LOS ANGELES, CALIFORNIA, AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN
DIMAS AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM.
WHEREAS, the Public Employees’ Retirement Law permits the participation of public agencies and their employees in the Public Employees’ Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, the contract amendment is to include Public Employees’ Pension Reform Act language.
NOW, THEREFORE, the CITY COUNCIL of the CITY OF SAN DIMAS, California, does ordain as follows:
SECTION 1. CONTRACT AMENDMENT. That an amendment to the contract between the City Council of the City of San Dimas and the Board of Administration, California Public Employees’ Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full.
SECTION 2. APPROVAL. The Mayor of the City of San Dimas is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency.
SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsection, subdivision, sentence, clause, phrase, or portion thereof be declared invalid or unconstitutional.
SECTION 4. CEQA DETERMINATION. The City Council hereby finds and determines that is can be seen with certainty that there is no possibility that this ordinance may have a significant adverse effect on the environment. Thus, the adoption of this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines.
SECTION 5. EFFECTIVE DATE AND PUBLICATION. This Ordinance shall take effect 30 days after its final passage. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within 15 days after passage and adoption as may be required by law in a newspaper of general circulation in the City of San Dimas hereby designated for that purpose; or, in the alternative, the City Clerk may cause to be published a summary of this
Ordinance 1335 Page 2
Amendment to CalPERS contract to include PEPRA language.
Ordinance and certified copy of the text of this Ordinance shall be posted in the Office of the City Clerk five days prior to the date of adoption of this Ordinance; and, within 15 days after adoption, the City Clerk shall cause to be published, the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of San Dimas this 24th day of March, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Emmett G. Badar, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________ ___________________________
Debra Black, City Clerk Jeff Malawy, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SAN DIMAS )
I, DEBRA BLACK, CITY CLERK of the City of San Dimas, do hereby certify that Ordinance 1335 was introduced at a regular meeting of the City Council of the City of San Dimas on the 24th day of February, 2026, and thereafter passed, approved and adopted at a regular meeting of said City Council held on the 24th day of March, 2026. ___________________________
Debra Black, City Clerk
A
CalPERS
California
Public Employees' Retirement System
-----•----
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Redrement System
and ilie
City Council
ttyolf San fiimas
----•----
The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, h~reinafter referred to as Public Agency, having entered into a contract effective July 1, 1966, and witnessed June 6, 1966, and as amended effective July 3, 1983, September 11, 1987, August 24, 1997, and August 13, 1999, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed, effective Aug\Jst 13, 1999, and hereby replaced by the following paragraphs numbered 1 through 14 inclusive:
1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for classic local miscellaneous members and age 62 for new local miscellaneous members.
2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1966, making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency.
ATTACHMENT 2
EXHIBIT
3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CalPERS) and its trustees, agents and employees, the CalPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorney fees that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CalPERS retirement program.
(b) Any dispute, disagreement, claim; or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or ------rormulas-ihar-are.:lifferenritran-sm::~ployees'-existirrg--· - retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than CalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas . provided under this Contract and provided for under the California Public Employees' Retirement Law.
4. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement:
a. Employees other than local safety members (herein referred to as local miscellaneous members).
5. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System:
a. ALL SAFETY EMPLOYEES.
6. Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or seasonal basis not to exceed 6 months were excluded from PERS membership by contract. Government Code Section 20336 superseded this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 1, 1994.
7. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full).
8. The percentage of final compensation to be provided for each year of credited prior and current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full).
9. Public Agency elected and elects to be subject to the following optional provisions:
a.
b.
C.
d.
Section 20503 (To Remove the Exclusion of "ELECTED
OFFICIALS," prospectively from September 11, 1987).
Section 20903 (Two Years Additional Service Credit).
Section 21024 (Military Service Credit as Public Service).
10. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on July 3, 1983. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834.
11. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members of said Retirement System.
12. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21573 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local misceaneous members.
b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law.
c. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law.
13. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law.
14. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the ---------e-mployee anatheBoard.
B. This amendment shall be effective on the __ day of ______ _, ___ .
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY _______________ _
MELODY BENAVIDES, CHIEF
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT CalPERS ID #6845264965
PERS-CON-702A
CITY COUNCIL
CITY OF SAN DIMAS
BY=-------------
PRESIDING OFFICER
Witness Date
Attest:
Clerk
Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of March 24, 2026
From: Brad McKinney, City Manager
Prepared by: Luis Torrico, Director of Community Development Subject: Introduce Ordinance 1336, Municipal Code Text Amendment 26-02, Amending the San Dimas Municipal Code, Title 18, Chapter 18.42 Multiple-Family (MF) Zone, Chapter 18.50 Downtown Specific Plan, and Chapter 18.538 Specific Plan No. 23 to Amend the Definition of Permitted Uses as they Relate to Apartments, Condominiums, Townhouses and Similar Multiple-family Developments, Which are Already a Permitted Use, Proposed on Properties Identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period. This item is Exempt under the California Environmental Quality Act, pursuant to Section 15061 (b)(3).
____________________________________________________________________________
SUMMARY
On September 27, 2022, the City Council adopted the City’s Housing Element for the 2021- 2029 Planning Period and was found to be in compliance with Housing Element Law by the Department of Housing and Community Development (HCD) on October 14, 2022. On March 17, 2025, the City received a letter from HCD inquiring about the City’s rezoning requirements, as required by the adopted Housing Element to accommodate the City’s Regional Housing Needs Allocation (RHNA).
City Staff met with HCD Staff to provide the adopted ordinances confirming that the required rezonings were completed, including the amendment to allow multi-family developments “ByRight” on these sites. While HCD was pleased with the City’s efforts to be in compliance with the adopted Housing Element, they had concerns with the definition of “permitted use” as it relates to housing developments proposed on properties identified as Housing Sites on the City’s Housing Element.
This amendment aims to address HCD’s concern of the definition of “permitted use” by revising the definition to make it clear that residential development projects shall be allowed through a ”By-Right” process when located on properties identified in the Housing Element to accommodate the City’s lower income RHNA.
MCTA 26-02 Page 2
For the Meeting of March 24, 2026
On February 19, 2026, the Planning Commission voted 5-0 to recommend approval of the amendment to the City Council.
RECOMMENDATION
Staff and the Planning Commission recommend that the City Council:
• Read by title and introduce Ordinance 1336 (Attachment 1); and • Find the project exempt under the California Environmental Quality Act, pursuant to Section 15061 (b)(3).
GOVERNMENT CODE §84308 APPLIES:
https://leginfo.legislature.ca.gov
No
FISCAL IMPACT
There is no fiscal impact for the recommended action.
BACKGROUND
On September 27, 2022, the City Council adopted the City’s Housing Element for the 2021-2029 Planning Period. Subsequently on October 14, 2022, the Department of Housing and Community Development (HCD) found the Housing Element to be in compliance with Housing Element/State Law. The goals and policies in the Housing Element address the City’s identified housing needs and are implemented through a series of housing programs, one of which includes rezoning the sites identified in the Sites Inventory to accommodate the City’s Regional Housing Needs Allocation (RHNA). On September 24, 2024, the City Council adopted Urgency Ordinances 1311 and 1314 which rezoned the properties identified in Program Five: Housing Sites Inventory, which also included allowing multi-family and similar developments “By-Right” (permitted use).
On March 17, 2025, the City received a letter from HCD (Attachment 2) inquiring about the City’s rezoning requirements, as required by the adopted Housing Element to accommodate the City’s RHNA. City Staff met with HCD Staff to provide the adopted ordinances confirming that the required rezonings were completed, including the amendment to allow multi-family developments “By-Right” on these sites. While HCD was pleased with the City’s efforts to be in compliance with the Housing Element, they raised concerns with the definition of “permitted use” as they relate to housing developments proposed on properties identified as Housing Sites in the City’s Housing Element. In order to ensure the City continues to be in compliance with the Housing Element, HCD directed City Staff to revise the definition of “permitted use” to make it clear that residential development projects shall be allowed through a “By-Right” process when proposed on properties identified in the Housing Element to accommodate the City’s lower income RHNA.
On February 19, 2026, the Planning Commission voted 5-0 to recommend approval of the amendment to the City Council (Attachment 3). Concerns were raised by the Commission regarding the State taking local control away and allow these developments “By-Right.” Staff agreed with the Commission, but also clarified that multi-family developments proposed on Housing Element Sites are already allowed “By-Right” under our current Code. This amendment would not change the current review process, but simply provide further clarification.
MCTA 26-02 Page 3
For the Meeting of March 24, 2026
DISCUSSION/ANALYSIS
The proposed amendment will revise the definition of “permitted use” in Chapters 18.42 MultipleFamily (MF) Zone, 18.50 Downtown Specific Plan, and 18.538 Specific Plan No. 23 as it relates to multi-family residential developments proposed on sites identified in the Housing Element Sites Inventory. As previously mentioned, the Code was amended in 2024 to allow these multi-family housing developments through a “By-Right” or permitted process, which met the requirements set forth in the Housing Element. Through the “By-Right” process, these developments do not require discretionary review/approval by the Planning Commission or City Council. Therefore, if an application for multi-family residential were to be submitted for one of the Housing Element sites, it would be submitted directly to Building plan check where Planning, Building and Public Works Staff would review the project concurrently. The only time these projects would be reviewed by the Planning Commission and City Council is if they were also proposing a parcel or tract map subdivision. In these instances, the Planning Commission would provide a recommendation for the subdivision map to the City Council, and subsequently, the City Council would take final action on the map. Under these reviews, only the subdivision map would be considered as multi-family residential which is allowed “By-Right” and does not require discretionary review/action.
While the current Code allows these uses “By-Right”, and Staff has conveyed the process to applicants, HCD has requested that the definition be revised to not just make it clear to applicants, but also to cite specific Government Code sections.
Per the proposed amendments, “permitted use”, when it applies to Housing Element Sites Inventory properties will state that multi-family residential developments are allowed “By-Right” which means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit, or other discretionary review. In addition, the definition will cite Government Code Section 65583.2 which provides further clarification, including but not limited to, reference to the Housing Element Sites Inventory, density requirements and further defines “By-Right.” For example, the amendment to Specific Plan No. 23 will be revised as follows:
Current
18.538.110 Planning area I—Mixed use—Residential/Industrial.
A. Permitted uses…
16. Apartments, condominiums, townhouses, senior citizen housing, and similar multiple-family developments.
Proposed
18.538.110 Planning area I—Mixed use—Residential/Industrial.
A. Permitted uses…
16. Apartments, condominiums, townhouses, senior citizen housing, and similar multiple-family developments shall be allowed by right pursuant to Government Code Section 65583.2, Subdivisions (c), (h) and (i). For this purpose, “by-right” means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit, or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
The underlined language above will be added to the applicable sections in the MF and DTSP zones. The proposed amendment will not change how the City currently processes multi-family
MCTA 26-02 Page 4
For the Meeting of March 24, 2026
or similar residential developments when located on Housing Element Sites, but will simply provide further clarification for applicants, as directed by HCD, and more importantly, will keep the City in compliance with the adopted Housing Element.
ALTERNATIVES
No alternatives recommended for this request.
ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.
Respectfully submitted,
Luis Torrico
Director of Community Development
Attachments:
1. Ordinance 1336
2. HCD Letter – March 17, 2025
3. February 19, 2026 Planning Commission Staff Report, Resolution PC-1706 & Draft Minutes
ATTACHMENT 1
ORDINANCE 1336
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN DIMAS,
COUNTY OF LOS ANGELES, CALIFORNIA, APPROVING MUNICIPAL
CODE TEXT AMENDMENT 26-02, A REQUEST TO AMEND THE CITY OF SAN DIMAS MUNICIPAL CODE TITLE 18, CHAPTER 18.42 MULTIPLEFAMILY (MF) ZONE, CHAPTER 18.50 DOWNTOWN SPECIFIC PLAN, AND CHAPTER 18.538 SPECIFIC PLAN NO. 23 TO AMEND THE
DEFINITION OF PERMITTED USES AS THEY RELATE TO
APARTMENTS, CONDOMINIUMS, TOWNHOUSES AND SIMILAR
MULTIPLE-FAMILY DEVELOPMENTS, WHICH ARE ALREADY A
PERMITTED USE, WHEN PROPOSED ON PROPERTIES IDENTIFIED AS HOUSING SITES IN THE CITY’S HOUSING ELEMENT FOR THE 2021- 2029 PLANNING PERIOD.
WHEREAS, an Amendment to the San Dimas Municipal Code has been duly initiated by the City of San Dimas; and
WHEREAS, the Amendment is described as a Municipal Code Text Amendment to amend the City of San Dimas Municipal Code, Title 18, 18.42 Multiple-Family (MF) Zone, Chapter 18.50 Downtown Specific Plan, and Chapter 18.538 Specific Plan No. 23 to amend the definition of Permitted Uses as they relate to apartments, condominiums, townhouses and similar multiple-family developments, which are already a permitted use, when proposed on properties identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period; and
WHEREAS, the Amendment would affect all properties identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period when located within the Multiple-Family (MF), Downtown Specific Plan, and Specific Plan No. 23 zones; and WHEREAS, on February 19, 2026, the Planning Commission voted 5-0 to recommend approval of Municipal Code Text Amendment 26-02 to the City Council; and WHEREAS, notice was duly given of the public hearing on the matter and that public hearing was held on March 24, 2026, at the hour of 7:00 p.m., with all testimony received being made a part of the public record; and
WHEREAS, all requirements of the California Environmental Quality Act and the City’s Environmental Guidelines have been met for the consideration of whether the project will have a significant effect on the environment.
NOW, THEREFORE, in consideration of the evidence received at the hearing, and for the reasons discussed by the City Council at the March 24, 2026, hearing, the City Council now finds as follows:
A. The proposed Municipal Code Text Amendment will not adversely affect adjoining property as to value, precedent or be detrimental to the area.
The proposed amendment will revise the definition of permitted uses as they relate to apartments, condominiums, townhouses and similar multiple-family
Ordinance 1336 Page 2
MCTA 26-02
developments proposed on properties located on the City’s Housing Sites Inventory in the Housing Element for the 2021-2029 Planning Period to provide clarity and keep the City in compliance with Housing Element and State Law. The amendment will not adversely affect adjoining property as to value, precedent or be detrimental to the area, as the revision will not change how these developments are currently entitled, but simply make it clear that these developments are allowed by right with no discretionary reviews required.
B. The proposed Municipal Code Text Amendment will further the public health, safety and general welfare.
The proposed amendment will further the public health, safety and general welfare by ensuring that apartments, condominiums, townhouses and similar multiple-family developments are allowed in compliance with Housing Element and State Law.
Clarifying the development process removes perceived development constraints and will further the State’s housing goals associated with the State’s Housing Accountability Act.
C. The proposed Municipal Code Text Amendment is consistent with the General Plan.
The proposed Municipal Code Text Amendment will revise definition of permitted uses as they relate to apartments, condominiums, townhouses and similar multiplefamily developments proposed on properties located on the City’s Housing Sites Inventory in the Housing Element for the 2021-2029 Planning Period to provide clarity and keep the City in compliance with Housing Element and State Law. The amendment will not change the types of uses allowed on the affected sites and will continue to allow multi-family and similar developments consistent with the General Plan designation but will provide clarity and ensure compliance with the Department of Housing and Community Development. The amendment will also be consistent with the following General Plan goal:
Housing Element HE-3: Address and, where appropriate and legally possible, remove or minimize governmental and non-governmental constraints to the maintenance, improvement, and development of housing.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN DIMAS DOES ORDAIN AS FOLLOWS:
SECTION 1. ADOPTION. Municipal Code Text Amendment 26-02 amending Title 18, Chapter 18.42 Multiple-Family (MF) Zone, Chapter 18.50 Downtown Specific Plan, and Chapter 18.538 Specific Plan No. 23 to amend the definition of Permitted uses as they relate to apartments, condominiums, townhouses and similar multiple-family developments, which are already a permitted use, when proposed on properties identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period, as set forth in Exhibit A, attached hereto and incorporated herein, is hereby adopted.
SECTION 2. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section,
Ordinance 1336 Page 3
MCTA 26-02
subsection, subdivision, sentence, clause, phrase, or portion thereof be declared invalid or unconstitutional.
SECTION 3. CEQA DETERMINATION. The City Council hereby finds and determines that it can be seen with certainty that there is no possibility that this ordinance may have a significant adverse effect on the environment. Thus, the adoption of this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 1506 (b)(3) of the CEQA Guidelines.
SECTION 4. EFFECTIVE DATE AND PUBLICATION. This Ordinance shall take effect 30 days after its final passage. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within 15 days after passage and adoption as may be required by law in a newspaper of general circulation in the City of San Dimas hereby designated for that purpose; or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and certified copy of the text of this Ordinance shall be posted in the Office of the City Clerk five days prior to the date of adoption of this Ordinance; and, within 15 days after adoption, the City Clerk shall cause to be published, the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of San Dimas this 14th day of April, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Emmett G. Badar, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________ ___________________________
Debra Black, City Clerk Jeff Malawy, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SAN DIMAS )
I, DEBRA BLACK, CITY CLERK of the City of San Dimas, do hereby certify that Ordinance 1336 was introduced at a regular meeting of said City Council held on the 24th day of March, 2026, and thereafter passed, approved and adopted at a regular meeting of said City Council held on the 14th day of April, 2026.
___________________________
Debra Black, City Clerk
Ordinance 1336 Page 4
MCTA 26-02
EXHIBIT A
**New text changes are in Blue and Underlined**
CHAPTER 18.42
MULTIPLE-FAMILY (MF) ZONE
18.42.010 Purpose. (No Changes)
18.42.020 Uses permitted.
18.42.030 Uses permitted by conditional use permit. (No Changes)
18.42.040 Density. (No Changes)
18.42.050 Property development standards. (No Changes)
18.42.060 Development plan approval. (No Changes)
18.42.020. Uses permitted.
Buildings, structures and land shall be used, and buildings and structures shall hereafter be erected, structurally altered or enlarged only for the following uses. All uses shall be subject to the property development standards set forth in this chapter.
A. Primary Uses.
1. Single-family dwelling, when located on lots which comply with the minimum lot area requirements of the SF-7500 zone.
2. Apartments, condominiums, townhouses and similar multiple-family developments, when located on sites identified in the City’s Housing Element for the 2021-2029 Planning Period. Such developments shall be allowed by right pursuant to Government Code Section 65583.2, Subdivisions (c), (h) and (i).
For this purpose, “by-right” means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit, or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. …..
Ordinance 1336 Page 5
MCTA 26-02
EXHIBIT B
**New text changes are in Blue and Underlined**
CHAPTER 18.50
DOWNTOWN SPECIFIC PLAN
18.50.010 Purpose. (No Changes)*
18.50.020 Applicability of specific plan. (No Changes)
18.50.030 Specific plan zoning designations. (No Changes)
18.50.040 Land use and development standards. (No Changes)
18.50.050 Amendments to specific plan. (No Changes)
18.50.060 Enforcement and penalties. (No Changes)
*Changes are proposed to the Specific Plan document referenced in Section
18.50.010
Ordinance 1336 Page 6
MCTA 26-02
Ordinance 1336 Page 7
MCTA 26-02
Ordinance 1336 Page 8
MCTA 26-02
EXHIBIT C
**New text changes are in Blue and Underlined**
CHAPTER 18.538
SPECIFIC PLAN NO. 23
Article I General
18.538.010 Purpose and intent. (No Changes)
18.538.020 Authority. (No Changes)
18.538.030 Location. (No Changes)
18.538.040 General provisions. (No Changes)
18.538.050 Definitions. (No Changes)
Article II Development Plan
18.538.060 Neighborhood setting. (No Changes)
18.538.070 Site specific conditions. (No Changes)
18.538.080 Existing improvements. (No Changes)
18.538.090 Circulation. (No Changes)
18.538.100 Planning area—Purpose and intent. (No Changes) Article III Development Standards
18.538.110 Planning area I—Mixed use—Residential/Industrial.
18.538.120 (Reserved) (No Changes)
18.538.130 Industrial provisions for existing improvements. (No Changes) Article IV General Development Standards
18.538. 140Streetscape design standards. (No Changes)
18.538. 150Industrial general provisions. (No Changes)
Article V Plan Review and Disposition. (No Changes)
18.538.160 Industrial review requirements. (No Changes)
18.538.170 Industrial minor modifications. (No Changes)
18.538.180 Appeal provisions. (No Changes)
Ordinance 1336 Page 9
MCTA 26-02
18.538.110. Planning area I—Mixed use—Residential/Industrial.
The Mixed use - Residential/industrial area is uniquely suited for residential, specialized light industrial and business uses. The mixed-use area is intended to allow for residential projects and careful combination of high-quality light industrial, warehousing, passive commercial, office and business use, developed separately on each block. The minimum parcel size for residential development shall be three acres and shall not be combined with industrial uses. The industrial development may be a single, high-quality user, or as a high quality, amenity oriented, architecturally sophisticated business park.
A. Permitted Uses. Limited light industrial, general business, office, passive commercial, and multifamily residential uses as set forth below. Each use shall be evaluated in terms of its operational characteristics and development plan in respect to the potential relationship with the adjoining residential neighborhood.
Buildings, structures, and land shall be used, and buildings and structures shall be altered or enlarged only for those uses specified herein. In addition, those uses the approving body may deem as similar but not more obnoxious or detrimental to the public health, safety and general welfare as those listed below may be permitted pursuant to the provisions of Chapter 18.12 of this title. All uses shall be conducted within a totally enclosed building, except as permitted by a conditional use permit. .…..
16. Apartments, condominiums, townhouses, senior citizen housing, and similar multiple-family developments shall be allowed by right pursuant to Government Code Section 65583.2, Subdivisions (c), (h) and (i). For this purpose, “by-right” means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit, or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
…..
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Ste. 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
March 17, 2025
Brad McKinney, City Manager
City of San Dimas
245 Bonita Avenue
San Dimas, CA 91773
RE: City of San Dimas 6th Cycle Housing Element Update Rezone Requirements – Letter of Inquiry
Dear Brad McKinney:
The purpose of this letter is to inquire about the status of the City of San Dimas’ (City) 6th Cycle Housing Element implementation program related to sites to accommodate the Regional Housing Needs Allocation (RHNA) pursuant to Government Code section 65585, subdivision (i). The California Department of Housing and Community Development (HCD) sent the City a letter on October 14, 2022, finding the City’s housing element in substantial compliance with Housing Element Law.1 This was based on, among other reasons, the City’s commitment to complete Program 5 (Housing Sites Inventory) to rezone adequate sites to satisfy its RHNA shortfall.
Rezoning Requirements
Pursuant to Government Code section 65583.4, subdivision (a), all rezoning actions must be completed three years and 120 days from the statutory deadline (October 15, 2021) if the local government adopted a sixth cycle housing element and HCD found the adopted element to be in substantial compliance within one year of the statutory deadline.
Consequences of Failure to Implement Program 5
Government Code section 65585, subdivision (i), grants HCD authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or Housing Element Law. This includes failure to implement program actions included in the housing element. Failure to implement rezone actions in Program 5 by the statutory deadline means the City’s housing element will no longer substantially comply with Housing Element Law, and HCD may revoke its finding of substantial compliance.
1 Gov. Code, § 65580 et seq.
ATTACHMENT 2
Brad McKinney, City Manager
Various consequences may apply if the City does not have a housing element in compliance with Housing Element Law, including ineligibility or delay in receiving certain state funds, referral to the California Office of the Attorney General, court-imposed financial penalties, the loss of local land use authority to a court-appointed agent, and the application of the “builder’s remedy.”2
Conclusion
Housing elements are essential to developing a blueprint for growth and are a vital tool to address California’s prolonged housing crisis. Accordingly, state law has established clear disincentives for local jurisdictions that fail to comply with Housing Element Law.
To ensure the City continues to meet the 6th cycle update requirements for a substantially compliant housing element, HCD requests that the City provide an update on the status and timeline of implementation of Program 5 by April 17, 2025 and submit any adopted rezones and accompanying resolutions to HCD for review.
HCD will consider any written response before taking further action authorized by Government Code section 65585, subdivision (i), including issuance of a Corrective Action Letter and revocation of HCD’s finding of housing element compliance.
HCD looks forward to receiving your written response to this inquiry. If you have any questions or would like to discuss the content of this letter, please contact Reid Miller, Housing Policy Specialist, at [email protected].
Sincerely,
Melinda Coy
Proactive Housing Accountability Chief
2 Gov. Code, §§ 65585, subds. (j), (l)(1), (i); 65589.5, subd. (d)(6).
Agenda Item Staff Report
To: Honorable Chair and Members of Planning Commission
For the Meeting of February 19, 2026
From: Luis Torrico, Director of Community Development
Subject: Municipal Code Text Amendment 26-02 Consideration and Discussion to amend the San Dimas Municipal Code, Title 18, Chapter 18.42 Multiple-Family (MF) Zone, Chapter 18.50 Downtown Specific Plan, and Chapter 18.538 Specific Plan No. 23 to amend the definition of Permitted and Primary Uses as they relate to apartments, condominiums, townhouses and similar multiple-family developments proposed on properties identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period.
____________________________________________________________________________
SUMMARY
On September 27, 2022, the City Council adopted the City’s Housing Element for the 2021- 2029 Planning Period, and was found to be in compliance with Housing Element Law by HCD on October 14, 2022. On March 17, 2025, the City received a letter from the Department of Housing and Community Development (HCD) inquiring about the City’s rezoning requirements, as required by the adopted Housing Element to accommodate the City’s Regional Housing Needs Allocation (RHNA).
City Staff met with HCD Staff to provide the adopted ordinances confirming that the required rezonings were completed. While HCD was pleased with the City’s efforts to be in compliance with the adopted Housing Element, they had concerns with the definition of “permitted use” and “primary use” as it relates to housing developments proposed on properties identified as Housing Sites on the City’s Housing Element.
This amendment aims to address HCD’s concern of the definition of “permitted use” and “primary use” by revising the definition to make it clear that residential development projects shall be allowed through a by-right process when located on properties identified in the Housing Element to accommodate the City’s lower income RHNA.
RECOMMENDATION
Staff recommends the Planning Commission adopt Resolution PC-1706 (See Attachment 1), recommending approval of Municipal Code Text Amendment 26-02 to the City Council.
ATTACHMENT 3
MCTA 26-02 Page 2
For the Meeting of February 19, 2026
GOVERNMENT CODE §84308 APPLIES:
https://leginfo.legislature.ca.gov
No
FISCAL IMPACT
There is no fiscal impact for the recommended action.
BACKGROUND
On September 27, 2022, the City Council adopted the City’s Housing Element for the 2021-2029 Planning Period. Subsequently on October 14, 2022, the Department of Housing and Community Development (HCD) found the Housing Element to be in compliance with Housing Element/State Law. The goals and policies in the Housing Element address the City’s identified housing needs and are implemented through a series of housing programs, one of which includes rezoning the sites identified in the Sites Inventory to accommodate the City’s Regional Housing Needs Allocation (RHNA). On September 24, 2024, the City Council adopted Urgency Ordinances 1311 and 1314 which rezoned the properties identified in Program Five: Housing Sites Inventory, which also included allowing multi-family and similar developments by-right (permitted use).
On March 17, 2025, the City received a letter from HCD (See Attachment 2) inquiring about the City’s rezoning requirements, as required by the adopted Housing Element to accommodate the City’s RHNA. City Staff met with HCD Staff to provide the adopted ordinances confirming that the required rezonings were completed. While HCD was pleased with the City’s efforts to be in compliance with the Housing Element, they raised concerns with the definition of “permitted use” as they relate to housing developments proposed on properties identified as Housing Sites in the City’s Housing Element. In order to ensure the City continues to be in compliance with the Housing Element, HCD directed City Staff to revise the definition of “permitted use” to make it clear that residential development projects shall be allowed through a by-right process on properties identified in the Housing Element to accommodate the City’s lower income RHNA.
DISCUSSION/ANALYSIS
The proposed amendment will revise the definition of “permitted use” and “primary use” in Chapters 18.42 Multiple-Family (MF) Zone, 18.50 Downtown Specific Plan, and 18.538 Specific Plan No. 23 as it relates to multi-family residential developments proposed on sites identified in the Housing Element Sites Inventory. As previously mentioned, the Code was amended in 2024 to allow these multi-family housing developments through a by-right or permitted process, which met the requirements set forth in the Housing Element. While Staff understands the permitting process for these developments, and has conveyed the process to applicants, HCD would prefer that the definition be revised to not just make it clear to applicants, but to cite specific Government Code sections.
Per the proposed amendments, “permitted use” and “primary use”, when it applies to Housing Element Sites Inventory properties will state that multi-family residential developments are allowed “by-right” which means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit, or other discretionary review. In addition, the definition will cite Government Code Section 65583.2 which provides further clarification, including but not limited to, reference to the Housing Element Sites Inventory, density requirements and further defines “by-right.” The proposed amendment will not change how the City currently processes multi-family or similar residential developments when located on Housing Element Sites, but will simply
MCTA 26-02 Page 3
For the Meeting of February 19, 2026
provide further clarification for applicants, as directed by HCD, and more importantly, will keep the City in compliance with the adopted Housing Element.
ALTERNATIVES
No alternatives recommended for this request.
ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.
Respectfully submitted,
Luis Torrico
Director of Community Development
Attachments:
1. Resolution PC-1706
2. HCD Letter – March 17, 2025
ATTACHMENT 1
RESOLUTION PC-1706
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN
DIMAS, COUNTY OF LOS ANGELES, CALIFORNIA, RECOMMENDING
APPROVAL OF MUNICIPAL CODE TEXT AMENDMENT 26-02 TO THE CITY
COUNCIL, A REQUEST TO AMEND THE CITY OF SAN DIMAS MUNICIPAL CODE TITLE 18, CHAPTER 18.42 MULTIPLE-FAMILY (MF) ZONE, CHAPTER
18.50 DOWNTOWN SPECIFIC PLAN, AND CHAPTER 18.538 SPECIFIC PLAN NO. 23 TO AMEND THE DEFINITION OF PERMITTED AND PRIMARY USES
AS THEY RELATE TO APARTMENTS, CONDOMINIUMS, TOWNHOUSES AND
SIMILAR MULTIPLE-FAMILY DEVELOPMENTS WHEN LOCATED ON
PROPERTIES IDENTIFIED AS HOUSING SITES IN THE CITY’S HOUSING ELEMENT FOR THE 2021-2029 PLANNING PERIOD.
WHEREAS, an Amendment to the San Dimas Municipal Code has been duly initiated by the City of San Dimas; and
WHEREAS, the Amendment is described as a Municipal Code Text Amendment to amend the City of San Dimas Municipal Code, Title 18, 18.42 Multiple-Family (MF) Zone, Chapter 18.50 Downtown Specific Plan, and Chapter 18.538 Specific Plan No. 23 to amend the definition of Permitted and Primary Uses as they relate to apartments, condominiums, townhouses and similar multiple-family developments proposed on properties identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period; and
WHEREAS, the Amendment would affect all properties identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period when located within the MultipleFamily (MF), Downtown Specific Plan, and Specific Plan No. 23 zones; and WHEREAS, notice was duly given of the public hearing on the matter and that public hearing was held on February 19, 2026 at the hour of 6:00 p.m., with all testimony received being made a part of the public record; and
WHEREAS, all requirements of the California Environmental Quality Act and the City’s Environmental Guidelines have been met for the consideration of whether the project will have a significant effect on the environment.
NOW, THEREFORE, in consideration of the evidence received at the hearing, and for the reasons discussed by the Commissioners at the hearing, the Planning Commission now finds as follows:
A. The proposed Municipal Code Text Amendment will not adversely affect adjoining property as to value, precedent or be detrimental to the area.
The proposed amendment will revise the definition of permitted and primary uses as they relate to apartments, condominiums, townhouses and similar multiple-family developments proposed on properties located on the City’s Housing Sites Inventory in the Housing Element for the 2021-2029 Planning Period to provide clarity and keep the City in compliance with Housing Element and State Law. The amendment will not adversely affect adjoining property as to value, precedent or be detrimental to the area, as the revision will not change how these developments are currently entitled, but simply make it clear that these developments are allowed by right with no discretionary reviews required. Page 245 – 257
RESOLUTION PC-1706 Page 2
MCTA 26-02
B. The proposed Municipal Code Text Amendment will further the public health, safety and general welfare.
The proposed amendment will further the public health, safety and general welfare by ensuring that apartments, condominiums, townhouses and similar multiple-family developments are allowed in compliance with Housing Element and State Law. Clarifying the development process removes perceived development constraints, and will further the State’s housing goals associated with the State’s Housing Accountability Act.
C. The proposed Municipal Code Text Amendment is consistent with the General Plan.
The proposed Municipal Code Text Amendment will revise definition of permitted and primary uses as they relate to apartments, condominiums, townhouses and similar multiple-family developments proposed on properties located on the City’s Housing Sites Inventory in the Housing Element for the 2021-2029 Planning Period to provide clarity and keep the City in compliance with Housing Element and State Law. The amendment will not change the types of uses allowed on the affected sites and will continue to allow multifamily and similar developments consistent with the General Plan designation, but will provide clarity and ensure compliance with the Department of Housing and Community Development. The amendment will also be consistent with the following General Plan goal:
Housing Element HE-3: Address and, where appropriate and legally possible, remove or minimize governmental and nongovernmental constraints to the maintenance, improvement, and development of housing.
NOW, THEREFORE, BE IT FURTHER RESOLVED, PURSUANT TO THE ABOVE FINDINGS, that the Planning Commission recommends to the City Council approval of Municipal Code Text Amendment 26-02, as set forth in attached Exhibit A, Exhibit B and Exhibit C.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of San Dimas this 19th day of February, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
David A. Bratt, Chairman
San Dimas Planning Commission
ATTEST:
______________________________________
Kimberly Neustice, Senior Management Analyst
RESOLUTION PC-1706 Page 3
MCTA 26-02
EXHIBIT A
**New text changes are in Blue and Underlined**
CHAPTER 18.42
MULTIPLE-FAMILY (MF) ZONE
18.42.010 Purpose. (No Changes)
18.42.020 Uses permitted.
18.42.030 Uses permitted by conditional use permit. (No Changes)
18.42.040 Density. (No Changes)
18.42.050 Property development standards. (No Changes)
18.42.060 Development plan approval. (No Changes)
18.42.020. Uses permitted.
Buildings, structures and land shall be used, and buildings and structures shall hereafter be erected, structurally altered or enlarged only for the following uses. All uses shall be subject to the property development standards set forth in this chapter.
A. Primary Uses.
1. Single-family dwelling, when located on lots which comply with the minimum lot area requirements of the SF-7500 zone.
2. Apartments, condominiums, townhouses and similar multiple-family developments, when located on sites identified in the City’s Housing Element for the 2021-2029 Planning Period. Such developments shall be allowed by right pursuant to Government Code Section 65583.2, Subdivisions (c), (h) and (i). For this purpose, “by-right” means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit, or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
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RESOLUTION PC-1706 Page 4
MCTA 26-02
EXHIBIT B
**New text changes are in Blue and Underlined**
CHAPTER 18.50
DOWNTOWN SPECIFIC PLAN
18.50.010 Purpose. (No Changes)*
18.50.020 Applicability of specific plan. (No Changes)
18.50.030 Specific plan zoning designations. (No Changes)
18.50.040 Land use and development standards. (No Changes)
18.50.050 Amendments to specific plan. (No Changes)
18.50.060 Enforcement and penalties. (No Changes)
*Changes are proposed to the Specific Plan document referenced in Section 18.50.010
RESOLUTION PC-1706 Page 5
MCTA 26-02
RESOLUTION PC-1706 Page 6
MCTA 26-02
EXHIBIT C
**New text changes are in Blue and Underlined**
CHAPTER 18.538
SPECIFIC PLAN NO. 23
Article I General
18.538.010 Purpose and intent. (No Changes)
18.538.020 Authority. (No Changes)
18.538.030 Location. (No Changes)
18.538.040 General provisions. (No Changes)
18.538.050 Definitions. (No Changes)
Article II Development Plan
18.538.060 Neighborhood setting. (No Changes)
18.538.070 Site specific conditions. (No Changes)
18.538.080 Existing improvements. (No Changes)
18.538.090 Circulation. (No Changes)
18.538.100 Planning area—Purpose and intent. (No Changes) Article III Development Standards
18.538.110 Planning area I—Mixed use—Residential/Industrial.
18.538.120 (Reserved) (No Changes)
18.538.130 Industrial provisions for existing improvements. (No Changes) Article IV General Development Standards
18.538. 140Streetscape design standards. (No Changes)
18.538. 150Industrial general provisions. (No Changes)
Article V Plan Review and Disposition. (No Changes)
18.538.160 Industrial review requirements. (No Changes)
18.538.170 Industrial minor modifications. (No Changes)
18.538.180 Appeal provisions. (No Changes)
RESOLUTION PC-1706 Page 7
MCTA 26-02
18.538.110. Planning area I—Mixed use—Residential/Industrial.
The Mixed use - Residential/industrial area is uniquely suited for residential, specialized light industrial and business uses. The mixed use area is intended to allow for residential projects and careful combination of high quality light industrial, warehousing, passive commercial, office and business uses, developed separately on each block. The minimum parcel size for residential development shall be three acres and shall not be combined with industrial uses. The industrial development may be a single, high quality user, or as a high quality, amenity oriented, architecturally sophisticated business park.
A. Permitted Uses. Limited light industrial, general business, office, passive commercial, and multifamily residential uses as set forth below. Each use shall be evaluated in terms of its operational characteristics and development plan in respect to the potential relationship with the adjoining residential neighborhood.
Buildings, structures, and land shall be used, and buildings and structures shall be altered or enlarged only for those uses specified herein. In addition, those uses the approving body may deem as similar but not more obnoxious or detrimental to the public health, safety and general welfare as those listed below may be permitted pursuant to the provisions of Chapter 18.12 of this title. All uses shall be conducted within a totally enclosed building, except as permitted by a conditional use permit.
1. Those uses permitted in the I-P Zone.
2. Upholstery shop.
3. Packaging business.
4. Electrical or neon sign manufacturing and maintenance.
5. Ice and cold storage plants.
6. Machinery and shops: Cabinet or carpentry shops, machine shops, sheet metal shops, tinsmiths, welding shops.
7. Garment manufacturing, including silk screen.
8. Manufacturing, compounding, processing, packaging, or treatment of products such as:
bakery goods, candy, cosmetics, dairy products, pharmaceutical drugs, food products (excluding sauerkraut, vinegar, yeast, and rendering of fats and oils), perfumes and toiletries.
9. Manufacturing, compounding, assembly or merchandise from the following previously prepared materials: Bone, canvas, cellophane, cloth, cork, feathers, felt, fiber, fur, glass, hair, horns, leather, metals, paper, plasters, precious and semi-precious stones and metals, shells, textiles, tobacco, wood, yarns, rubber and metal stamps, shoes, stone monuments works.
10. Processing: Laboratories, blueprinting or photocopying, laundries, carpet rug cleaning plants, dry cleaning and dyeing plants.
11. Fabrication: Fabrication of products made from finished rubber and plastics.
12. Wholesaling and warehousing: Wholesaling and warehousing facilities, storage and distribution agencies, janitorial supplies, service/building maintenance, TV repair and service, athletic supply.
13. Office and related uses: Business and administrative offices, bookkeeping
Resolution PC-1706 Page 8
MCTA 26-02
service, catalog store, data processing; employment agency, finance office, import-export offices and wholesale warehouse, mail-order; office machines sales and service, stock and commodity brokerage, telephone answering and exchange.
14. Other uses incidental and directly related to the service and operation of a permitted use: On-site employee recreational facilities, on-site medical clinics, industrial and business training facilities, conference and meeting rooms.
15. Other similar uses which the director of community development finds compatible and similar to the permitted uses described herein, subject to a determination of use pursuant to Chapter 18.12 of this title.
16. Apartments, condominiums, townhouses, senior citizen housing, and similar multiple-family developments shall be allowed by right pursuant to Government Code Section 65583.2, Subdivisions (c), (h) and (i). For this purpose, “by-right” means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit, or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
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CITY OF SAN DIMAS
PLANNING COMMISSION
MINUTES
Regularly Scheduled Meeting
Thursday, February 19, 2026 at 6:00 p.m.
245 East Bonita Avenue, City Council Chamber
PRESENT
Chairman David Bratt
Vice-Chairman John Davis
Commissioner Margie Green
Commissioner Doran Barnes
Commissioner James Shirley
Director of Community Development Luis Torrico
Senior Management Analyst Kimberly Neustice
Administrative Assistant Guillermo Padilla
CALL TO ORDER AND FLAG SALUTE
Chairman Bratt called the regular meeting of the Planning Commission to order at 6:00 p.m. and Commissioner Green led the flag salute.
MINUTES
CC 1. Moved by Commissioner Green, seconded by Commissioner Shirley to approve the consent calendar. Motion carried 5-0.
PUBLIC HEARING
PH 1. Municipal Code Text Amendment 26-02 Consideration and Discussion to amend the San Dimas Municipal Code, Title 18, Chapter 18.42 Multiple-Family (MF) Zone, Chapter 18.50 Downtown Specific Plan, and Chapter 18.538 Specific Plan No. 23 to amend the definition of Permitted and Primary Uses as they relate to apartments, condominiums, townhouses and similar multiple-family developments proposed on properties identified as Housing Sites in the City’s Housing Element for the 2021-2029 Planning Period.
Staff report presented by Director of Community Development Torrico recommending Planning Commission adopt Resolution PC-1704, recommending approval of Municipal Code Text Amendment 26-02 to the City Council.
Commissioner Shirley asked what the difference was between primary use and permitted use.
Planning Commission Minutes Page 2
February 19, 2026
Director of Community Development Torrico stated that they are essentially the same, however, both terms are used throughout the code and staff is trying to standardize terminology among the different sections.
Commissioner Shirley clarified that if developers propose these uses, they would not come to the Planning Commission for approval.
Director of Community Development Torrico stated that was correct and that the project would go straight into plan check. However, most developers are building condos and due to the legal aspects of the ownership of the air space for condos, they would need to do a parcel map which would come to the Planning Commission for review and approval. If apartments were to be proposed, that would come straight in for plan check because it would not typically have a parcel map associated with the project.
Commissioner Barnes stated that his understanding was that in the Downtown Specific Plan there are sites that were zones to allow for a denser type of development. If a developer proposed a project with a lower density, would that be a by right project.
Director of Community Development Torrico stated no, it would not. The developer would have to request that the City amend the Housing Element to allow for the lower density, which is not what the City wants to do. The City is looking for development projects such as a mixed-use project with housing and retail.
Vice -Chairman Davis stated that since we divided up the Development Plan Review Board responsibilities between City Staff and the Planning Commission, he thought that the design aspect was one of the items that would come to Planning Commission for review. Or is it that because it’s a by right project, they can build whatever they want to and not abide by the design requirements.
Director of Community Development Torrico stated that currently our code states that for multifamily where the underlying zone does not allow the development as a permitted use, it is subject to Planning Commission review. If multifamily projects are located on a housing element site, those projects comply with the current zoning and would not be subject to Planning Commission review.
Vice -Chairman Davis asked if the Staff has any ability to change the design of the project if they propose something that is not aesthetically pleasing.
Director of Community Development Torrico stated yes, Staff would hold them to the design guidelines that are in place, however, if the project is on a Housing Element site, we can only hold the developer to the adopted objective design standards. But remember when it’s a proposed density bonus project, the developer can ask for waivers and concessions which could include the design requirements.
Planning Commission Minutes Page 3
February 19, 2026
Vice -Chairman Davis clarified that if the projected is permitted by right, it would not come before the Planning Commission or City Council for approval.
Director of Community Development Torrico stated that was correct, unless there was a parcel or tract map involved. If there is a parcel or tract map, it would come to Planning Commission for review and recommendation to the City Council for the map only. The Council would then take final action. The Planning Commission could make suggestions to the developer on improvements to the project design, but we cannot make them a condition of the approval of the map.
Chairman Bratt asked for clarification on the amendment on page 23 of the agenda. It seems that there are two categories.
Director of Community Development Torrico stated that most of our Housing Element sites are located in the DTSP but not all of the properties that are part of the DTSP are Housing Element sites so we created two categories. But to be clear, all sites in the DTSP allow multi-family residential byright. However, only the Housing Element sites would be subject to the proposed amendments.
Commissioner Shirley clarified that if the developer proposes to build a project on a site that was identified as residential and their project meets the zoning specifications, then the project will not come to Planning Commission for approval, and they have the right to build what they want to build.
Director of Community Development Torrico stated that the change being proposed tonight only effects Housing Element sites, and is not citywide. The developer can only build a by right project if the project falls within the zoning guidelines such as the density ranges.
Commissioner Shirley clarified that some of the developments might require a map and those would come to Planning Commission for review.
Director of Community Development Torrico stated that was correct. For example, apartments do not require maps so these projects would not come to Planning Commission. Townhomes or condos would require a map to subdivide the lots and to deal with the air space. Additionally, this change only applies to multifamily developments, not single family.
Chairman Bratt opened the Public Hearing at 6:23 p.m.
No communications were made.
Chairman Bratt closed the public hearing at 6:25 p.m.
Vice -Chairman Davis asked if there’s anything we can do to keep the state from destroying the city.
Planning Commission Minutes Page 4
February 19, 2026
Director of Community Development Torrico stated that the Planning Commission can go on record and state that they oppose this MCTA but in reality there’s nothing that the City can really do.
It’s a requirement put on the City by the State and HCD.
Vice -Chairman Davis stated that some of the things Staff included in the objective design standards will help with the aesthetics of these projects.
Director of Community Development Torrico stated that yes, the objective design standards are applicable to all new residential development in the City.
RESOLUTION PC-1706
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN
DIMAS, COUNTY OF LOS ANGELES, CALIFORNIA, RECOMMENDING
APPROVAL OF MUNICIPAL CODE TEXT AMENDMENT 26-02 TO THE CITY
COUNCIL, A REQUEST TO AMEND THE CITY OF SAN DIMAS MUNICIPAL CODE TITLE 18, CHAPTER 18.42 MULTIPLE-FAMILY (mf) ZONE, CHAPTER
18.50 DOWNTOWN SPECIFIC PLAN, AND CHAPTER 18.538 SPECIFIC PLAN NO. 23 TO AMEND THE DEFINITION OF PERMITTED AND PRIMARY USES
AS THEY RELATE TO APARTMENTS, CONDOMINIUMS, TOWNHOUSES AND
SIMILAR MULTIPLE-FAMILY DEVELOPMENTS WHEN LOCATED ON
PROPERTIES IDENTIFIED AS HOUSING SITES IN THE CITY’S HOUSING ELEMENT FOR THE 2021-2029 PLANNING PERIOD.
MOTION: Moved by Commissioner Barnes, seconded by Commissioner Green to adopt Resolution PC-1706, recommending approval of Municipal Code Text Amendment 26-02 to the City Council.
Motion carried 5-0
ORAL COMMUNICATIONS
a. Community Development Department
Director of Community Development Torrico gives updates:
• Staff is trying to contact the owner of 217 W Bonita Avenue to get an update on Dixie Rose and when they might be opening.
• The parcel map on Cienega that came before the Planning Commission last month will be coming back to the Planning Commission at the April meeting. The owner has made some revisions to the proposed development that will help to provide more on-site parking,
Planning Commission Minutes Page 5
February 19, 2026
however, the second story is an allowed use and cannot be denied, but they have made some changes to reduce the impact of the second story.
b. Members of the Audience
No communications were made.
c. Planning Commission
Chairman Bratt asked about the status of the housing site on Walnut Avenue and Moore Lane.
Director of Community Development Torrico stated that they will be building the homes in 3 phases. The first phase will include all site improvements and the four homes closest to Walnut, and his understanding is that they will still be moving forward with the project.
ADJOURNMENT
MOTION: Commissioner Davis moved, seconded by Commissioner Green Motion carried 5-0.
The meeting adjourned at 6:31 p.m. to the regular Planning Commission Meeting scheduled for Thursday, March 19, 2026.
________________________________
David A. Bratt, Chairman
San Dimas Planning Commission
ATTEST:
_______________________
Kimberly Neustice
Senior Management Analyst
Approved: March 19, 2026