Agenda packet — San Fernando City Council, October 6, 2025 (part 2 of 3)

ANALYSIS:

Local governments often provide health education and preventive services to support overall community well-being and public safety. When cities invest in accessible, culturally responsive programs on topics like brain health and dementia awareness, they help individuals make informed choices that support healthier, more productive lives, while also reducing strain on hospitals, long-term care facilities, and family caregivers. These services are especially critical for older adults, caregivers, and underserved populations who may not otherwise have access to resources or guidance. This MOU represents an opportunity to formalize and strengthen the City’s long-standing collaboration with ALA, enabling more formal advertising efforts and a streamlined facility use application process.

ALA, a nonprofit 501(c)(3) founded in 1981, serves families impacted by Alzheimer’s disease and other dementias through free, high-quality education, support, and care programs. Services include workshops, caregiver support groups, memory clubs, and personalized counseling by dementia specialists, as well as community outreach to promote brain health, risk reduction, healthy aging, and early detection. These interactive and culturally inclusive sessions provide residents with practical education on dementia, caregiving, and brain health, reflecting a shared commitment to supporting families, caregivers, and the community’s overall cognitive wellness.

Through the proposed MOU, the City will formalize its long-standing partnership with ALA to provide a variety of community-based services that promote brain health awareness, risk reduction, and caregiver support. These services include:
• Monthly “Healthy Brains” workshops for residents;
• Educational sessions on Alzheimer’s disease, dementia, and caregiving; • Support groups and memory clubs for families and caregivers; • Personalized counseling and referrals to dementia specialists; • Access to a toll-free helpline for information and assistance; • Ongoing outreach to promote brain health and healthy aging strategies.

Services will be provided at City Hall at the BCRC or City park facilities throughout the City, as space is available. ALA will promote the programs through its website, social media, and partner communication channels. The City will support the initiative by providing facility space, along with waiving any applicable facility rental fees, assisting with outreach (such as flyers, social media posts, etc.) and encouraging community participation. ALA will receive access to using the City Seal, with City Manager approval, for marketing materials, as agreed upon in the terms of the MOU.

These efforts align with the City Council’s Strategic Goal of Focusing on Community First by increasing access to preventive and supportive services for all residents. By working collaboratively with ALA, the City seeks to continue offering culturally inclusive, locally accessible October 6, 2025 CC Special & Regular Mtg Page 174 of 520 Consideration to Approve a Memorandum of Understanding with Alzheimer’s Los Angeles to Provide Education and Resources Related to Alzheimer’s Disease and Other Dementias

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education and resources that promote brain health and caregiver support for San Fernando residents.

BUDGET IMPACT:

There is no budget impact incurred by this collaboration as all maintenance costs for the use of City facilities have already been accounted for in the Fiscal Year 2025-2026 Adopted Budget.

Additionally, the City will waive any applicable permit fees associated with co-sponsored events, which could range in cost from approximately $150 - $1,000 per event, depending on which city facility is being requested for use, according to the Fiscal Year 2024-2025 Fee Schedule.

CONCLUSION:

Staff recommends that the City Council approve the MOU with Alzheimer’s Los Angeles to provide education and resources related to Alzheimer’s disease and other dementias; and authorize the City Manager, or designee, to make non-substantive changes and execute the agreement.

ATTACHMENT:

A. Contract No. 2422
October 6, 2025 CC Special & Regular Mtg Page 175 of 520 ATTACHMENT “A”
CONTRACT NO. 2422

MEMORANDUM OF UNDERSTANDING

BETWEEN
CITY OF SAN FERNANDO AND ALZHEIMER’S LOS ANGELES
This Memorandum of Understanding (“MOU”) is entered into this 6th day of October, 2025 (“Effective Date”), by and between the CITY OF SAN FERNANDO (“City”) and ALZHEIMER’S LOS ANGELES (“ALA”), a Section 501 (c)(3) nonprofit organization. City and ALA are sometimes individually referred to as “Party” and collectively as “Parties.” WHEREAS, the City is a California municipal corporation organized and existing under the laws of the State of California; and
WHEREAS, the City is dedicated to enhancing resources and supportive services that promote the well-being of residents, in alignment with Strategic Goal I: Focus on Community First; and
WHEREAS, the City will approve the use of the City seal on print material and social media pursuant to City Council Ordinance No. 1724;
WHEREAS, ALA is a non-profit dedicated to enhancing the lives of local families impacted by Alzheimer’s and other dementias by raising awareness, offering effective programs and services, providing compassionate support, and advocating for quality care and the pursuit of a cure since 1981; and
WHEREAS, the main goals of ALA’s enhance the lives of local families impacted by Alzheimer’s and other dementias by raising awareness, offering effective programs and services, providing compassionate support, and advocating for quality care and the pursuit of a cure; and
WHEREAS, ALA will provide its services and programming at no cost to residents of the City, which will include expert-led educational classes and support sessions focused on Alzheimer’s disease, dementia, caregiving, and related topics (the “Program”); and WHEREAS, the Parties desire to enter into this MOU to establish a partnership to implement the Program through the City’s park facilities, the Business and Community Resource Center (“BCRC”) and other designated locations in San Fernando.

NOW, THEREFORE, it is mutually understood and agreed by the Parties as follows:

SECTION 1. RECITALS. The foregoing recitals are true and correct and incorporated into and made a part of this MOU.

October 6, 2025 CC Special & Regular Mtg Page 176 of 520 CONTRACT NO. 2422
2 SECTION 2. TERM. This MOU shall commence on the Effective Date and terminate two (2) years thereafter (“Term”), with an option to extend the term for two (2) additional one (1) year periods, unless terminated earlier. The City Manager, in their reasonable discretion, is authorized to exercise the City’s extension options administratively, pursuant to Section 2.C.

A. Amendments: This MOU may be amended with the approval of both parties, in writing, provided both parties sign the revised agreement. A modification request must be presented, in writing, thirty (30) days prior to effective date.

B. Termination: Either party may terminate its participation in this MOU without cause by providing a 30-day written notice by a nationally recognized overnight delivery service with delivery to, personal service at, or mail to, the addresses identified herein. The thirty (30) days will begin on the date of personal service, the date placed with the overnight delivery service or the date of mailing as applicable.

C. Extension: This MOU may be extended by written agreement between both parties, provided such agreement is signed by both parties prior to the termination date and contains the following:
i. A statement of intent to continue the provisions of the MOU; ii. Revised effective and termination dates and
iii. Dated signature of the signatory’s designee
SECTION 3. NO PAYMENT OF OR FUNDING BY CITY FUNDS. ALA recognizes and agrees that City shall have no obligation to provide City funds in support ALA’s Program or ALA’s use of City facilities or perform any fundraising services or activities on behalf of ALA.

SECTION 4. USE OF CITY FACILITIES. If ALA wishes to make use of City parks, rooms and buildings (“City Facilities”), ALA must first submit a written request for such use to City.

City in its sole discretion and subject to availability may grant, conditionally grant or deny any such request. City shall waive facility use fees for ALA’s use of City Facilities for activities and services provided by or through the Program. City reserves the right to designate or redesignate which City Facilities may be used by ALA in the performance of its duties and responsibilities under this MOU. Nothing in this MOU shall be interpreted to grant any license or leasehold interest in the City Facilities to ALA.

SECTION 5. ALA’S SCOPE OF SERVICES. ALA shall be responsible for Program implementation, administration and oversight, as further described in the Scope of Services as outlined in Exhibit A attached to this MOU and incorporated herein by reference.

SECTION 6. INDEMNIFICATION: To the fullest extent permitted by law, ALA agrees to indemnify, defend and hold free and harmless the City and City’s elected or appointed officials, officers, employees, agents and volunteers from, any and all actions, claims, damages to persons or property, penalties, obligations, costs (including reasonable attorneys’ fees) or liabilities that may be asserted or claimed by any person, firm, entity, corporation, political October 6, 2025 CC Special & Regular Mtg Page 177 of 520 CONTRACT NO. 2422
3 subdivision or other organization, arising out of, caused by or related to the services provided by ALA under this MOU, as well as the willful misconduct or negligent acts, errors or omissions of ALA, its agents, employees, volunteers, or invitees, including each person or entity responsible for the provision of services hereunder. ALA’s duty to indemnify, defend and hold harmless shall not include any claims or liabilities arising from the sole negligence or willful misconduct of the City, or the City’s elected or appointed officials, officers, employees, agents, and volunteers. This provision shall survive the expiration or termination of this MOU.

SECTION 7. LIMITATION OF CITY LIABILITY. In no event shall City be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect, or incidental damages, including, but not limited to, lost profits or revenue, arising out of or in connection with this MOU or the services performed in connection with this MOU.

SECTION 8. TAXES. ALA shall assume full responsibility for payments of federal, state and local taxes or contributions imposed or required under the social security, workers' compensation or income tax law, or any disability or unemployment law, or retirement contribution of any sort whatever, concerning ALA or any employee of ALA and shall further indemnify, pay for the defense of, and hold harmless City of and from any such payment or liability arising out of or in any manner connected with ALA’s performance under this MOU.

SECTION 9. INSURANCE. At its sole expense, ALA shall procure and keep in force full and adequate insurance coverage of all of its operations pursuant to this MOU as set forth below, and “City of San Fernando” shall be named as an additional insured on policies providing coverage for subsections 9(a) and 9(c) below:
(a) Commercial General Liability: (1986 ISO form or later) with minimum limits of $1,000,000 per occurrence/$2,000,000 aggregate written on an occurrence basis. (b) Auto Liability (including owned, hired and non-owned autos): $1,000,000 combined single limit (each accident).
(c) Worker’s Compensation and Employer's Liability: Statutory California State limits.

These coverages and limits are to be considered minimum requirements under this MOU and in no way limit the liability of ALA.

Prior to start of work under this MOU, ALA shall file with City evidence of insurance as required above from an insurer or insurers certifying to the required coverage. The coverage shall be evidenced on a certificate of insurance signed by an authorized representative of the insurer(s). Coverage on all required policies may not be canceled, amended, terminated, or otherwise modified without no less than 30-days advance written notice to the City.

SECTION 10. NOTICES. Any notice required or permitted to be given under this MOU shall be in writing and shall be deemed to have been delivered, if hand delivered or deposited with a reputable overnight courier (such as Federal Express, UPS, DHL, or similar courier), October 6, 2025 CC Special & Regular Mtg Page 178 of 520 CONTRACT NO. 2422
4 postage prepaid, return receipt required, or three (3) business days after deposit into U. S. Mail, certified or registered, postage prepaid and return receipt requested, and shall be addressed as follows, unless otherwise notified in writing of change of address:

IF TO CITY:

City of San Fernando
Attn: City Manager’s Office
117 Macneil St.

San Fernando, CA. 91340
Phone: (818) 898-1202
Email: [email protected]
IF TO ALZHEIMER’S LOS ANGELES:

Alzheimer’s Los Angeles
Attn: Cathy Ladd
2922 Crenshaw Blvd, Suite 125
Los Angeles, CA 90016
Phone: (323) 930-6213
Email: [email protected]
SECTION 11. MISCELLANEOUS.

A. Assignment Prohibited. ALA shall not, either directly or indirectly, assign, transfer, hypothecate, subcontract or delegate all or any portion of this MOU or any rights, duties or obligations of ALA hereunder without the prior written consent of City. A change of ownership or control of ALA or a sale or transfer of substantially all of the assets of ALA shall be deemed an assignment for purposes of this MOU.

B. Cooperation; Further Acts: The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as is reasonably necessary, appropriate or convenient to achieve the purposes of this MOU.

C. Governing Law and Venue. This MOU shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.

D. No Third-Party Benefit. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this MOU inure exclusively to the Parties.

E. Construction of MOU. This MOU shall not be construed in favor of, or against, either Party but shall be construed as if the Parties prepared this MOU together through a process of negotiation and with the advice of their respective attorneys.

F. Severability. If any portion of this MOU is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

October 6, 2025 CC Special & Regular Mtg Page 179 of 520 CONTRACT NO. 2422
5 G. Amendment; Modification. No amendment, modification or supplement of this MOU shall be valid or binding unless executed in writing and signed by both Parties, subject to City approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver shall be void and invalid.

H. Captions. The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limits, augment, or describe the scope, content, or intent of this MOU.

I. Inconsistencies or Conflicts. In the event of any conflict or inconsistency between the provisions of this MOU and any of the exhibits attached hereto, the provisions of this MOU shall control.

IN WITNESS WHEREOF, the Parties hereto have caused this Memorandum of Understanding to be executed on the day and year first appearing in the paragraph preceding the recitals.

CITY OF SAN FERNANDO ALZHEIMER’S LOS ANGELES
By: By:

Kanika Kith, Interim City Manager
Name:

Date:

Title:

APPROVED AS TO FORM Date:

By:

Richard Padilla, City Attorney
Date:

October 6, 2025 CC Special & Regular Mtg Page 180 of 520 CONTRACT NO. 2422
EXHIBIT “A”
6 EXHIBIT A

SCOPE OF SERVICES
I. Objectives
The purpose of this collaboration between the City of San Fernando and Alzheimer’s Los Angeles is to enhance the lives of local families impacted by Alzheimer’s disease and other dementias. This will be achieved by:
• Raising community awareness of Alzheimer’s and dementia. • Delivering effective, culturally sensitive programs and services. • Providing compassionate support to caregivers and families. • Advocating for quality care and promoting brain health.

II. Parties
This Scope of Work is established between the City of San Fernando and Alzheimer’s Los Angeles.

III. Responsibilities of City of San Fernando
The City of San Fernando agrees to:

1. Provide Venue
o Offer space within the park’s facilities for classes and support sessions. o Ensure access to necessary utilities such as electricity, seating, and AV equipment, as needed.

2. Marketing and Outreach
o Assist in promoting the classes through City communication channels, including newsletters, social media platforms, and community bulletin boards.

3. Point of Contact
o Designate a staff member to serve as the primary liaison with Alzheimer’s Los Angeles for coordination and issue resolution.

IV. Responsibilities of Alzheimer’s Los Angeles
Alzheimer’s Los Angeles agrees to:

1. Program Delivery
o Provide expert-led educational classes and support sessions focused on Alzheimer’s disease, dementia, caregiving, and related topics. o Supply and manage all necessary program materials.

October 6, 2025 CC Special & Regular Mtg Page 181 of 520 CONTRACT NO. 2422
EXHIBIT “A”
6 2. Curriculum Development
o Develop and deliver a curriculum that is culturally sensitive and accessible, with a particular focus on the Spanish-speaking community of San Fernando.

3. Staffing
o Ensure qualified professionals conduct classes, answer participant questions, and provide follow-up resources.

4. Data and Feedback
o Collect participant feedback and share findings with the City to support program evaluation and future improvements.

5. Compliance
o Follow all park rules and regulations during facility use. o Ensure all activities are conducted in a safe and respectful manner.

V. Schedule and Duration

1. Class Schedule
• Regularly scheduled classes will be held on the first Thursday of each month beginning September 4, 2025 through December 30, 2028 (excluding holidays). • Additional classes may be scheduled at the City’s sole discretion and are subject to availability. The City may approve, conditionally approve, or deny any such request.

2. La Posada Event
• Alzheimer’s Los Angeles will host a cultural brain health awareness event, La Posada, one day each December.

Service Locations: Services will be provided at Las Palmas Park, Recreation Park, BCRC, Rudy Ortega Sr. Park or other designated locations in the City of San Fernando approved by the City Manager or designee.

Outreach and Promotion: The City and ALA will actively promote all events and service offerings through multiple channels, including:
• Social media platforms
• The organization’s official website
• Email communications to subscribers and partner networks October 6, 2025 CC Special & Regular Mtg Page 182 of 520 October 6, 2025 CC Special & Regular Mtg Page 183 of 520 This Page
Intentionally
Left Blank
October 6, 2025 CC Special & Regular Mtg Page 184 of 520

AGENDA REPORT
REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ Interim City Manager CITY MANAGER’S OFFICE 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1202 WWW.SFCITY.ORG To: Mayor Mary Mendoza and Councilmembers
From: Kanika Kith, Interim City Manager
By: Will Pettener, Assistant to the City Manager
Cristina Moreno, Social Services Coordinator
Kenya Marquez, Housing Coordinator

Date: October 6, 2025
Subject: Consideration to Approve Memorandum of Understanding with Asociación de Jaliscienses Unidos en Acción to Provide Mexican Consular Services and Community Resources
RECOMMENDATION:

It is recommended that the City Council:
a. Approve a Memorandum of Understanding (MOU) with Asociación de Jaliscienses Unidos en Acción (AJUA) (Attachment “A” – Contract No. 2434) to provide Mexican consular services and community resources; and
b. Authorize the City Manager, or designee, to make non-substantive changes and execute the agreement.

BACKGROUND:

1. At the July 7, 2025 Regular City Council Meeting, the City Council approved several programming items related to immigrant-related assistance and community resources, to establish the San Fernando Together initiative.

2. On August 18, 2025, AJUA provided a Public Comment at the City Council meeting to introduce their organization, outline available services, and express interest in partnering with the City.

3. On September 3, 2025, AJUA met with staff to further discuss their services and share opportunities for collaboration through the Business and Community Resource Center, such as stationing a representative at the counter area one (1) day per month.

October 6, 2025 CC Special & Regular Mtg Page 185 of 520 Consideration to Approve Memorandum of Understanding Asociación de Jaliscienses Unidos en Acción to Provide Mexican Consular Services and Community Resources

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ANALYSIS:

Local governments play a vital role in supporting immigrant and migrant communities by connecting them with resources that promote inclusion, cultural identity, and access to essential services. When cities partner with community-based organizations, they help residents navigate complex systems, preserve cultural traditions, and strengthen community ties. The City strives to provide its residents with programs that celebrate diversity, support access to resources, and strengthen community well-being. To support this effort, in July 2025, the City launched San Fernando Together, a citywide emergency relief program designed to assist residents impacted by immigration-related activities, including providing one‑time financial grants, food distribution, and connecting households with supportive services. To expand services for the immigrant community, staff has explored partnerships with organizations that enhance outreach to immigrant and underserved populations to offer services such as citizenship processing support and key documentation updates.

The Association of Jaliscienses Unidos en Acción (AJUA) is a nonprofit organization dedicated to supporting the Mexican migrant community and their families. Through cultural programming, community events, and access to Mexican consular services, AJUA helps residents stay connected to their heritage while addressing practical needs such as updating passports, correcting and reproducing IDs, and providing other official documentation. Services are provided primarily in Spanish and designed to strengthen identity, empower families, and build bridges between local government and the community. Providing these services in the City will greatly benefit the community from an accessibility perspective, as the closest Mexican Consulate Office is in downtown Los Angeles, creating transportation challenges.

Through the proposed MOU, AJUA will partner with the City to offer the following expanded access to Mexican consular and immigration services:

Service Description Cost Note
Certified Record Prints
(Birth, Marriage, Death,
Recognition, and Late
Registrations)
Processed by AJUA and
delivered by email
$10 fee: Printed on
bond paper
$25 fee: Printed on
official valued paper
If the City provides the
printer, toner, and
paper, AJUA will offer
printed copies at no
cost to residents.

Dual Citizenship
Processing
Certificate issued on official
government papers
$200 fee Processing time:

Approximately 90
business days
Notarial Powers of
Attorney
Attorney support offered to
provide consultations and
ongoing legal services if
requested.

First consultation is
free; Fees may apply
thereafter
October 6, 2025 CC Special & Regular Mtg Page 186 of 520 Consideration to Approve Memorandum of Understanding Asociación de Jaliscienses Unidos en Acción to Provide Mexican Consular Services and Community Resources

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Administrative
Clarifications
Available only to individuals
born in Jalisco, Mexico
Free Available only to
individuals born in
Jalisco, Mexico
Educational
Workshops
Small events aimed at
providing key information to
the community
Free Topics and schedule to
be developed in
coordination with City
The proposed agreement will provide services at least once per month at the City’s Business and Community Resource Center (BCRC), with ability to schedule additional events or workshops at City facilities in the future. The City, in its sole discretion and subject to availability, may grant, conditionally grant, or deny use of facility space, to allow for City programming to have facility use priority. AJUA will actively promote programs through its own networks, social media, and printed materials, while the City will support efforts by amplifying outreach through social media and the City website. The City will also provide a desk space and coordinate on scheduling for AJUA staff to utilize the BCRC. The City will also waive applicable facility use fees for AJUA workshops or events.

If approved by City Council, staff will work with AJUA to hold the first open office hours at the BCRC in November 2025. These efforts align with the City’s goal of expanding access to supportive services, celebrating cultural identity, and fostering stronger community connections. By working collaboratively with AJUA, the City seeks to enhance local access to culturally appropriate, government-linked services that empower residents and strengthen San Fernando’s diverse community.

BUDGET IMPACT:

There is no budget impact incurred by this collaboration, as all maintenance costs for the use of City facilities through the BCRC have already been accounted for in the Fiscal Year 2025–2026 Adopted Budget. Additionally, the City will waive any applicable fees associated with cosponsored workshops or events at other City facilities, which could range in cost from approximately $150–$1,000 per event depending on the facility being requested, according to the Fiscal Year 2024–2025 Fee Schedule. Residents who utilize AJUA’s services will be responsible for paying all applicable fees directly to AJUA at the time of service.

CONCLUSION:

Staff recommends that the City Council approve the MOU with Asociación de Jaliscienses Unidos en Acción (AJUA) to provide Mexican consular services and community resources; and authorize the City Manager, or designee, to make non-substantive changes and execute the agreement.

ATTACHMENTS:

A. Contract No. 2434, including:

Exhibit “A”: Scope of Services
October 6, 2025 CC Special & Regular Mtg Page 187 of 520 ATTACHMENT “A”
CONTRACT NO. 2434

MEMORANDUM OF UNDERSTANDING

BETWEEN
CITY OF SAN FERNANDO AND ASOCIACIÓN DE JALISCIENSES UNIDOS EN ACCIÓN This Memorandum of Understanding (“MOU”) is entered into this 6th day of October, 2025 (“Effective Date”), by and between the CITY OF SAN FERNANDO (“City”) and ASOCIACIÓN DE JALISCIENSES UNIDOS EN ACCIÓN (“AJUA”), a Section 501 (c)(3) nonprofit organization. City and AJUA are sometimes individually referred to as “Party” and collectively as “Parties.” WHEREAS, the City is a California municipal corporation organized and existing under the laws of the State of California; and
WHEREAS, the City is dedicated to enhancing resources and supportive services that promote the well-being of residents, in alignment with Strategic Goal I: Focus on Community First; and
WHEREAS, the City will approve the use of the City seal on print material and social media pursuant to City Council Ordinance No. 1724;
WHEREAS, AJUA is a nonprofit organization that provides Mexican consular services, including civil registry, dual citizenship processes, legal documentation, and administrative clarifications to individuals of Mexican origin; and
WHEREAS, AJUA also promotes cultural identity, civic engagement, and community well-being by coordinating cultural events, educational workshops, and outreach initiatives; and
WHEREAS, the Parties desire to enter into this MOU to establish a partnership to implement the Program through the City’s Business and Community Resource Center (“BCRC”) and other designated locations in San Fernando.

NOW, THEREFORE, it is mutually understood and agreed by the Parties as follows:

SECTION 1. RECITALS. The foregoing recitals are true and correct and incorporated into and made a part of this MOU.

SECTION 2. TERM. This MOU shall commence on the Effective Date and terminate one (1) calendar year thereafter (“Term”), with an option to extend the term for two (2) additional one (1) year periods, unless terminated earlier. The City Manager, in their reasonable discretion, is authorized to exercise the City’s extension options administratively, pursuant to Section 2.C.

October 6, 2025 CC Special & Regular Mtg Page 188 of 520 CONTRACT NO. 2434
2 A. Amendments: This MOU may be amended with the approval of both parties, in writing, provided both parties sign the revised agreement. A modification request must be presented, in writing, thirty (30) days prior to effective date.

C. Extension: This MOU may be extended by written agreement between both parties, provided such agreement is signed by both parties prior to the termination date and contains the following:
i. A statement of intent to continue the provisions of the MOU; ii. Revised effective and termination dates and
iii. Dated signature of the signatory’s designee
SECTION 3. NO PAYMENT OF OR FUNDING BY CITY FUNDS. AJUA recognizes and agrees that City shall have no obligation to provide City funds in support AJUA’s Program or AJUA’s use of City facilities or perform any fundraising services or activities on behalf of AJUA.

Residents who utilize AJUA’s services will be responsible for paying all applicable fees directly to AJUA at the time of service. The applicable cost per service is set forth in Exhibit A, attached hereto and incorporated herein by reference.

SECTION 4. USE OF CITY FACILITIES. If AJUA wishes to make use of City parks, rooms and buildings (“City Facilities”), AJUA must first submit a written request for such use to City.

City in its sole discretion and subject to availability may grant, conditionally grant or deny any such request. City shall waive facility use fees for AJUA’s use of City Facilities for activities and services provided by or through the Program. City reserves the right to designate or redesignate which City Facilities may be used by AJUA in the performance of its duties and responsibilities under this MOU. Nothing in this MOU shall be interpreted to grant any license or leasehold interest in the City Facilities to AJUA.

SECTION 5. AJUA’S SCOPE OF SERVICES. AJUA shall be responsible for Program implementation, administration, and oversight, as further described in the Scope of Services outlined in Exhibit A attached to this MOU and incorporated herein by reference. AJUA will provide its services (including certified record prints, dual citizenship processes, notarial powers of attorney, and administrative clarifications) directly to residents at City facilities, as designated by the City, including the Business and Community Resource Center (BCRC), at least once per month, during hours agreed upon with the City.

October 6, 2025 CC Special & Regular Mtg Page 189 of 520 CONTRACT NO. 2434
3 SECTION 6. INDEMNIFICATION: To the fullest extent permitted by law, AJUA agrees to indemnify, defend and hold free and harmless the City and City’s elected or appointed officials, officers, employees, agents and volunteers from, any and all actions, claims, damages to persons or property, penalties, obligations, costs (including reasonable attorneys’ fees) or liabilities that may be asserted or claimed by any person, firm, entity, corporation, political subdivision or other organization, arising out of, caused by or related to the services provided by AJUA under this MOU, as well as the willful misconduct or negligent acts, errors or omissions of AJUA, its agents, employees, volunteers, or invitees, including each person or entity responsible for the provision of services hereunder. AJUA’s duty to indemnify, defend and hold harmless shall not include any claims or liabilities arising from the sole negligence or willful misconduct of the City, or the City’s elected or appointed officials, officers, employees, agents, and volunteers. This provision shall survive the expiration or termination of this MOU.

SECTION 8. TAXES. AJUA shall assume full responsibility for payments of federal, state and local taxes or contributions imposed or required under the social security, workers' compensation or income tax law, or any disability or unemployment law, or retirement contribution of any sort whatever, concerning AJUA or any employee of AJUA and shall further indemnify, pay for the defense of, and hold harmless City of and from any such payment or liability arising out of or in any manner connected with AJUA’s performance under this MOU.

SECTION 9. INSURANCE. At its sole expense, AJUA shall procure and keep in force full and adequate insurance coverage of all of its operations pursuant to this MOU as set forth below, and “City of San Fernando” shall be named as an additional insured on policies providing coverage for subsections 9(a) and 9(c) below:
(a) Commercial General Liability: (1986 ISO form or later) with minimum limits of $1,000,000 per occurrence/$2,000,000 aggregate written on an occurrence basis. (b) Auto Liability (including owned, hired and non-owned autos): $1,000,000 combined single limit (each accident).
(c) Worker’s Compensation and Employer's Liability: Statutory California State limits.

These coverages and limits are to be considered minimum requirements under this MOU and in no way limit the liability of AJUA.

Prior to start of work under this MOU, AJUA shall file with City evidence of insurance as required above from an insurer or insurers certifying to the required coverage. The coverage shall be evidenced on a certificate of insurance signed by an authorized representative of the insurer(s). Coverage on all required policies may not be canceled, amended, terminated, or otherwise modified without no less than 30-days advance written notice to the City.

October 6, 2025 CC Special & Regular Mtg Page 190 of 520 CONTRACT NO. 2434
4 SECTION 10. NOTICES. Any notice required or permitted to be given under this MOU shall be in writing and shall be deemed to have been delivered, if hand delivered or deposited with a reputable overnight courier (such as Federal Express, UPS, DHL, or similar courier), postage prepaid, return receipt required, or three (3) business days after deposit into U. S. Mail, certified or registered, postage prepaid and return receipt requested, and shall be addressed as follows, unless otherwise notified in writing of change of address:

IF TO CITY:

City of San Fernando
Attn: City Manager’s Office
117 Macneil St.

San Fernando, CA. 91340
Phone: (818) 898-1202
Email: [email protected]
IF TO ASOCIACIÓN DE JALISCIENSES UNIDOS
EN ACCIÓN:

Asociación De Jaliscienses Unidos En Acción
Attn: Yanett Navarro
2168 E Florence Ave,
Huntington Park CA, 90255
Phone: (310) 619-7571
Email: [email protected]
SECTION 11. MISCELLANEOUS.

A. Assignment Prohibited. AJUA shall not, either directly or indirectly, assign, transfer, hypothecate, subcontract or delegate all or any portion of this MOU or any rights, duties or obligations of AJUA hereunder without the prior written consent of City. A change of ownership or control of AJUA or a sale or transfer of substantially all of the assets of AJUA shall be deemed an assignment for purposes of this MOU.

D. No Third-Party Benefit. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this MOU inure exclusively to the Parties.

October 6, 2025 CC Special & Regular Mtg Page 191 of 520 CONTRACT NO. 2434
5 F. Severability. If any portion of this MOU is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

G. Amendment; Modification. No amendment, modification or supplement of this MOU shall be valid or binding unless executed in writing and signed by both Parties, subject to City approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver shall be void and invalid.

I. Inconsistencies or Conflicts. In the event of any conflict or inconsistency between the provisions of this MOU and any of the exhibits attached hereto, the provisions of this MOU shall control.

IN WITNESS WHEREOF, the Parties hereto have caused this Memorandum of Understanding to be executed on the day and year first appearing in the paragraph preceding the recitals.

CITY OF SAN FERNANDO ASOCIACIÓN DE JALISCIENSES UNIDOS EN ACCIÓN
By: By:

Kanika Kith, Interim City Manager
Name:

Date:

Title:

APPROVED AS TO FORM Date:

By:

Richard Padilla, City Attorney
Date:

October 6, 2025 CC Special & Regular Mtg Page 192 of 520 CONTRACT NO. 2434
EXHIBIT “A”
6 EXHIBIT A

SCOPE OF SERVICES
I. Objectives
The purpose of this collaboration between the City of San Fernando and Asociación de Jaliscienses Unidos en Acción (AJUA) is to expand access to Mexican consular services for residents of San Fernando. This will be achieved by:
• Providing certified record prints, dual citizenship processes, notarial powers of attorney, and administrative clarifications.
• Delivering services in a culturally appropriate manner, primarily in Spanish. • Promoting cultural identity and civic engagement through workshops and events. • Enhancing community well-being by offering convenient access to government-linked services.

II. Parties
This Scope of Work is established between the City of San Fernando and AJUA.

III. Responsibilities of City of San Fernando
The City of San Fernando agrees to:

1. Provide Venue
o Offer space within BCRC for AJUA to deliver monthly services, and other facility space, when available, for approved workshops and events. o Ensure access to necessary utilities, such as electricity, seating, and internet, as needed.

2. Marketing and Outreach
o Assist in promoting AJUA services through City communication channels, including newsletters, social media platforms, and community bulletin boards.

Materials will be created by AJUA and then shared with the City for distribution.

3. Logistical Support
o Provide staff support for facility access during scheduled service hours. o Ensure appropriate space setup to accommodate residents seeking services.

4. Point of Contact
o Designate a staff member to serve as the primary liaison with AJUA for coordination and issue resolution.

IV. Responsibilities of Asociación de Jaliscienses Unidos en Acción (AJUA) AJUA agrees to:

October 6, 2025 CC Special & Regular Mtg Page 193 of 520 CONTRACT NO. 2434
EXHIBIT “A”
6 1. Program Delivery
o Be on-site at a City facility, at least once per month, during agreed upon hours, to provide its services directly to residents.
o Deliver services primarily in Spanish, and in English when necessary.

2. Services Offered and Costs
o Certified Record Prints (Birth, Marriage, Death, Recognition, and Late Registrations).
• Delivery by email: No cost
• Printed on bond paper: $10 fee
• Printed on official valued paper: $25 fee
• If the City provides the printer, toner, and paper, AJUA will offer printed copies at no cost to residents.
o Dual Citizenship Process
• $200 fee
• Processing time: Approximately 90 business days in Mexico • Certificate issued on official valued paper at no cost upon arrival o Notarial Powers of Attorney
• First consultation: No cost
• Fees thereafter vary depending on case
o Administrative Clarifications
• Available only to individuals born in Jalisco, Mexico • No cost
o Educational Workshops
• Topics and schedule to be developed in coordination with the City • No cost to attend for residents
• Workshops may be scheduled at City facilities, which the City, in its sole discretion and subject to availability, may grant, conditionally grant, or deny
o Cultural Events
• Coordinated with the City to promote cultural identity and community engagement
• No cost to attend for residents
• Events may be scheduled at City facilities, which the City, in its sole discretion and subject to availability, may grant, conditionally grant, or deny

3. Reporting
o Provide monthly reports summarizing the number of residents served and services delivered.

4. Outreach and Promotion
o Actively promote services through AJUA’s networks, social media, and printed materials.
o Creation of outreach and promotional materials to distribute to the City. o Coordinate with the City to ensure consistent messaging in outreach efforts.

October 6, 2025 CC Special & Regular Mtg Page 194 of 520 CONTRACT NO. 2434
EXHIBIT “A”
6 5. Compliance
o Follow all City rules and regulations during facility use. o Ensure all services are provided in a safe, respectful, and professional manner.

V. Schedule and Duration

1. Service Schedule
• AJUA will provide services at a City facility at least once per month, with the exact location, service dates and times to be coordinated in advance with the City. • Additional service dates may be scheduled at the City’s discretion and subject to facility availability. The City may approve, conditionally approve, or deny any such request.

2. Service Locations
o Services will be provided at City facilities, designated by the City, including the Business and Community Resource Center (BCRC).
o Cultural events may be coordinated at additional City facilities, subject to approval.

3. Outreach and Promotion
o The City and AJUA will actively promote all events and service offerings through multiple channels, including:
• Social media platforms
• The organization’s official website
• Email communications to subscribers and partner networks o AJUA will be responsible for creation of promotional and outreach materials, such as flyers or graphic images to be shared online.

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October 6, 2025 CC Special & Regular Mtg Page 198 of 520

AGENDA REPORT
REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ Interim City Manager CITY MANAGER’S OFFICE 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1202 WWW.SFCITY.ORG To: Mayor Mary Mendoza and Councilmembers
From: Kanika Kith, Interim City Manager
By: Erica Melton, Director of Administrative Services
By: Will Pettner, Assistant to the City Manager

Date: October 6, 2025
Subject: Consideration to Approve a First Amendment to the Professional Services Agreement with Interwest Consulting Group for On-Call Public Works Services to Include Addition of an Interim Public Works Director, Project Management, and Grant Administration Services
RECOMMENDATION:

It is recommended that the City Council:
a. Approve a first amendment to the Professional Services Agreement with Interwest Consulting Group (Attachment “A” - Contract No. 2429(a)) for On-Call Public Works Services, increasing the contract amount by $325,000 for a revised not-to-exceed total of $350,000; and b. Authorize the City Manager, or designee, to make non-substantive changes and execute the amendment and all related documents.

BACKGROUND:

1. On August 15, 2025, staff requested proposals from Interwest, Transtech, and 4Leaf to provide Public Works support services.

2. On August 27, 2025, Interwest Consulting Group submitted a proposal to provide Public Works support services to the City of San Fernando, including in-office staffing two to three days per week.

3. On September 18, 2025, Contract No. 2429 was administratively executed with Interwest Consulting Group to initiate on-call Public Works services.

4. On September 22, 2025, Director of Public Works Wendell Johnson formally announced his resignation, effective November 7, 2025.

October 6, 2025 CC Special & Regular Mtg Page 199 of 520 Consideration to Approve a First Amendment to the Professional Services Agreement for On-Call Public Works Services with Interwest Consulting Group to Include Addition of an Interim Public Works Director, Project Management, and Grant Administration Services

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5. On September 23, 2025, Interim City Manager requested Interwest Consulting Group to expand its scope of services to provide Interim Public Works Director, Project Manager, and Grant Administration support. This expansion ensures continuity of operations, oversight of capital improvement projects, and compliance with water grant reporting requirements until a permanent Director is appointed.

ANALYSIS:

The City San Fernando Public Works Department plays a vital role in maintaining and enhancing the City’s infrastructure, facilities, and essential services that directly impact residents’ quality of life. The department is responsible for the construction, operation, and maintenance of streets, sidewalks, traffic signals, parks, water systems, and storm drains, while also managing capital improvement projects that support long-term sustainability and growth. In addition, Public Works oversees environmental programs, fleet services, and solid waste compliance, ensuring that the City meets state and federal regulations. The department also manages a portfolio of critical infrastructure and capital improvement projects funded through various federal, state, and regional grants. These projects require consistent oversight, technical expertise, and timely reporting to maintain compliance and avoid funding delays or penalties.

The Public Works Department currently has a vacancy at the Senior Management Analyst position and will be experiencing another key positional vacancy with Director Johnson’s departure in November. Simultaneously, the department is facing challenges on the administration of current water projects in the City, including $7 million and $3 million state grant funded nitrate system projects.

Interwest Consulting Group is a well-established municipal services provider serving over 300 agencies statewide. Their team includes licensed engineers, certified project managers, and experienced grant administrators. The City entered into an agreement with Interwest on September 18, 2025 through an informal procurement process, allowable under the City Manager’s administrative authority per the Article II, Division 6, Section 2-840(c)3 of the San Fernando Municipal Code (SFMC) that enabled on-call contract services not to exceed $25,000.

Interwest is familiar with internal workflows, staffing challenges, and operational priorities.

Given the urgency to maintain momentum on capital projects and meet grant deadlines, staff recommends expanding existing on-call support services with Interwest, to deploy a multidisciplinary team that can provide:
• Interim Public Works Director leadership;
• Project Management for active and upcoming capital improvement projects; and • Grant Management, specifically on the City’s current $7 million and $3 million water grants, to ensure timely reporting and compliance with funding agency requirements October 6, 2025 CC Special & Regular Mtg Page 200 of 520 Consideration to Approve a First Amendment to the Professional Services Agreement for On-Call Public Works Services with Interwest Consulting Group to Include Addition of an Interim Public Works Director, Project Management, and Grant Administration Services

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Interwest’s scalable staffing model allows for efficient allocation of resources, ensuring that each task is handled by qualified personnel with relevant expertise. The firmsfamiliarity with the City’s infrastructure and administrative systems positions them to provide immediate and effective support.

In order to maintain daily operations of the Department of Public Works without interruption and meet the grant deadline reporting requirements for capital improvement projects, staff is recommending increasing the contract with Interwest Consulting Group and providing funding up to June 2026, or until a permanent Public Works Director is appointed.

BUDGET IMPACT:

The cost of the proposed contract increase will be offset by savings from the vacant Public Works Senior Management Analyst position, the upcoming vacancy of the Public Works Director position, and existing grant funds available through the City’s $7.0 million and $3.0 million state water grants. Sufficient funding is included in the Fiscal Year 2025-2026 Budget Adopted to fund the professional expenses associated with this request.

CONCLUSION:

It is recommended that the City Council approve a first amendment to the Professional Services Agreement for On Call Public Works Services (Contract No. 2429(a) - Attachment “A”) with Interwest Consulting Group, increasing the contract amount by $325,000 for a revised not-toexceed total of $350,000; and authorize the City Manager to execute all related documents necessary to effectuate the amendment.

ATTACHMENTS:

A. Contract No. 2429(a), including:

Exhibit “A”: Contract No. 2429
October 6, 2025 CC Special & Regular Mtg Page 201 of 520 CONTRACT NO. 2429(a)

FIRST AMENDMENT PROFESSIONAL SERVICES AGREEMENT
(Parties: Interwest a SAFEbuilt Company and City of San Fernando) (Engagement: On-Call Public Works Services)
THIS FIRST AMENDMENT (hereinafter, “First Amendment”) to that certain agreement entitled “On-Call Public Works Services” Contract No. 2429 dated September 2, 2025, (hereinafter, “Master Agreement”), is hereby made and entered into this 6th day of October 2025 (hereinafter, “Effective Date”) by and between CITY OF SAN FERNANDO, a municipal corporation (hereinafter, “CITY”) and INTERWEST A SAFEBUILT COMPANY (hereinafter, “CONSULTANT”). For purposes of this First Amendment, the capitalized term “Parties” shall be a collective reference to both CITY and CONSULTANT. The capitalized term “Party” may refer to either CITY or CONSULTANT, interchangeably.

RECITALS
This First Amendment is made and entered into with respect to the following facts:

WHEREAS, exaction of the Master Agreement was executed by the Parties on September 2, 2025 (A true and correct copy of the Master Agreement is attached and incorporated hereto as Exhibit “A”); and
WHEREAS, the Parties now wish to modify the Master Agreement by amending the scope of services to include interim Public Works Director leadership, project management for active and upcoming capital improvement projects, and water projects grant management; WHEREAS, the Parties now wish to modify the Master Agreement by amending the compensation amount by THREE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($325,000), as a result of expanded scope of services; and
WHEREAS, the Parties acknowledge that during the term of the Agreement the COMPENSATION RATE may require adjustments; and
WHEREAS, approval authority is given to the City Manager to administratively approve such rate adjustments, provided that any adjustment does not exceed the compensation allocated within a fiscal year, without City Council approval, and that written notice of such adjustment is provided to the City at least 30 days prior to the effective date; and WHEREAS, the capitalized term “Contract” shall refer to the Master Agreement as amended by way of this First Amendment; and
WHEREAS, that the execution of this First Amendment was approved by the San Fernando City Council at its Regular Meeting of October 6, 2025, under Agenda Item No. 8.

October 6, 2025 CC Special & Regular Mtg Page 202 of 520 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429(a) On-Call Public Works Services

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NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. The Scope set forth under Section 1.2 of the Master Agreement scope of services shall be expanded to include interim Public Works Director leadership, project management for active and upcoming capital improvement projects, and water projects grant management, as attached and incorporated here to as Exhibit “B”.

SECTION 2. The Not-To-Exceed Sum set forth under Section 1.4 of the Master Agreement shall not exceed an aggregate sum of up to THREE HUNDRED FIFTHY THOUSAND DOLLARS ($350,000).

SECTION 3. Section 1.4 of the Master Agreement is hereby amended to authorize the City Manager to approve COMPENSATION RATE adjustments administratively, provided that any adjustment does not exceed the compensation allocated within a fiscal year, without City Council approval, and that written notice of such adjustment is provided to the City at least 30 days prior to the effective date.

SECTION 4. Except as otherwise set forth in this First Amendment, the Master Agreement shall remain binding, controlling, and in full force and effect. Section 1.4 of the Master Agreement notwithstanding, this First Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents (Entire Agreement). In the event of a conflict or inconsistency between the provisions of this First Amendment, including any and all attachments to this First Amendment and the provisions of the Master Agreement, including all exhibits attached to the Master Agreement, the provisions of the First Amendment and its attachments shall govern and control but only to the extent of the conflict and no further.

SECTION 5. The provisions of this First Amendment shall be deemed a part of the Master Agreement and except, as otherwise provided under this First Amendment, the Master Agreement and all provisions contained therein shall remain binding and enforceable.

Signature page to follow
October 6, 2025 CC Special & Regular Mtg Page 203 of 520 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429(a) On-Call Public Works Services

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IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed on the day and year first appearing above.

CITY OF SAN FERNANDO: INTERWEST, A SAFEBUILT COMPANY:

By: By:

Kanika Kith, Interim City Manager
Name:

Date:

Title:

APPROVED AS TO FORM: Date:

By:

Richard Padilla, City Attorney
Date:

October 6, 2025 CC Special & Regular Mtg Page 204 of 520 CONTRACT NO. 2429
2025

PROFESSIONAL SERVICES AGREEMENT
(Parties: Interwest a SAFEbuilt Company and City of San Fernando) (Engagement: On-Call Public Works Services)
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this 2nd day of September 2025 (hereinafter, the “Effective Date”) by and between the CITY OF SAN FERNANDO, a municipal corporation (hereinafter, “CITY”) and INTERWEST A SAFEBUILT COMPANY (hereinafter, “CONSULTANT”). For the purposes of this Agreement, CITY and CONSULTANT may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONSULTANT interchangeably, as appropriate.

RECITALS
WHEREAS, CITY requires Public Works Services; and
WHEREAS, CITY staff has determined that CONSULTANT possesses the experience, skills and training necessary to competently provide such services to CITY; and WHEREAS, approval authority for this Agreement is by the City Manager pursuant to a specific provision of the San Fernando Municipal Code; and NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULTANT agree as follows:

ENGAGEMENT TERMS

1.1 TERM: This Agreement shall have a term commencing from the Effective Date through June 30, 2026 (hereinafter, the “Term”). Nothing in this Section shall operate to prohibit or otherwise restrict the CITY’s ability to terminate this Agreement at any time for convenience or for cause as provided under Article V (Termination), below. The Term may be extended for one-year periods at the option of the CITY, provided that CITY provides CONSULTANT with written notice of CITY’s intent to exercise CITY’s option to extend the term of the Agreement no less than thirty (30) days prior to the expiration of the Term or any prior extension term. In the event CITY exercises its option to extend this Agreement, all terms, conditions, and provisions of this Agreement shall remain in effect and govern the duties, responsibilities, and liabilities of the parties hereto.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 205 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429 On-Call Public Works Services

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PSA – On Call/As Needed

1.2 SCOPE OF SERVICES:

A. Subject to the terms and conditions of this Agreement, CONSULTANT agrees to provide the services and tasks described in that certain proposal of CONSULTANT entitled “PROPOSAL FOR PUBLIC WORKS SERVICES” dated August 27, 2025 (hereinafter, the “CONSULTANT Proposal”) which is attached and incorporated hereto as Exhibit “A”. CONSULTANT further agrees to furnish to CITY all labor, materials, tools, supplies, equipment, services, tasks, and incidental and customary work necessary to competently perform and timely complete the services and tasks set forth in the Scope of Services. For the purposes of this Agreement the aforementioned services and tasks set forth in the Scope of Services shall hereinafter be referred to generally by the capitalized term “Services.”

1.3 PROSECUTION OF SERVICES:

A. CONSULTANT shall perform the Services contemplated under this Agreement on an on-call, as-needed basis. Nothing in this Agreement shall be construed to grant CONSULTANT the exclusive right to perform any of the types of services or tasks contemplated under this Agreement nor shall anything in this Agreement be construed to entitle CONSULTANT to the receipt of any sums under this Agreement, except to the extent CITY requests the performance of any Services in the manner described below and such Services is in fact performed and completed by CONSULTANT and accepted by CITY. CITY requests for the performance of specific services or tasks contemplated under this Agreement shall be made in the form of a written work order(s) issued by the City Representative (each such written request hereinafter referred to as a “Work Order”). Each Work Order shall include the following information:

1. A detailed description of the specific services or tasks requested;

2. The location of where the particular services or tasks are to be performed, if applicable;

3. A not-to-exceed budget for performing the services or tasks;

4. A timeline for completing the requested services or tasks;

5. Any other information CITY deems necessary and relevant to the requested services or tasks; and

6. The signature of the City Representative, confirming that the services or tasks have been authorized by the City Representative.

B. CONSULTANT shall not perform any of the Services contemplated under this Agreement without a written Work Order request from the City Representative, containing the information set forth in Section 1.3(A), above;

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 206 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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C. CONSULTANT shall perform all assigned Services continuously and with due diligence so as to complete all assigned Services by the completion date indicated in each Work Order. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors, or agents;
D. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULTANT, or its subconsultants, to have related services or tasks completed in a timely manner; E. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT’s employees; and
F. CONSULTANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

1.4 COMPENSATION: CONSULTANT shall perform the Services in accordance with the “PROPOSAL FOR PUBLIC WORKS SERVICES” which is attached and incorporated hereto as Exhibit “A” (hereinafter, the “COMPENSATION RATE”). The foregoing notwithstanding, CONSULTANT’s total compensation for the performance of all Services contemplated under this Agreement, may not exceed aggregate sum of TWENTY-FIVE THOUSAND DOLLARS ($25,000) (hereinafter, the “Not-to-Exceed Sum”) during the Term of this Agreement, unless such added expenditure is first approved by the City Council. In the event CONSULTANT’s charges are projected to exceed the Aggregate Not-to-Exceed Sum prior to the expiration of this Agreement, CITY may suspend CONSULTANT’s performance pending CITY approval of any anticipated expenditures in excess of the Aggregate Not-toExceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.5 PAYMENT OF COMPENSATION: Following the conclusion of each calendar month, CONSULTANT will submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and any reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT’s monthly compensation is a function of hours worked by CONSULTANT’s personnel, the invoice should indicate the number of hours worked in the recently concluded calendar month, the person(s) responsible for performing the Services, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed.

Within thirty (30) calendar days of receipt of each invoice, CITY will notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY will pay all undisputed amounts included on the invoice. CITY will not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 207 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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1.6 ACCOUNTING RECORDS: CONSULTANT will maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.7 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Services agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Services, CONSULTANT will deliver to CITY immediately and without delay, all materials, records, and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT will only be compensated for the reasonable value of the Services performed up to the time of cessation or abandonment, less a deduction for any damages, costs, or additional expenses which CITY may incur as a result of CONSULTANT’s cessation or abandonment.

II.

PERFORMANCE OF AGREEMENT

2.1 CITY’S REPRESENTATIVE: The CITY hereby designates the Public Works Director (hereinafter, the “City Representative”) to act as its representative for the performance of this Agreement. The City Representative or the City Representative’s designee will act on behalf of the CITY for all purposes under this Agreement. CONSULTANT will not accept directions or orders from any person other than the City Representative or the City Representative’s designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Bill Evans, Senior Director of Operations to act as its representative for the performance of this Agreement (hereinafter, “Consultant Representative”). Consultant Representative will have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. Consultant Representative or the Consultant Representative’s designee will supervise and direct the performance of the Services, using his/her best skill and attention, and will be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all Services under this Agreement.

Notice to the Consultant Representative will constitute notice to CONSULTANT.

2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS: CONSULTANT agrees to work closely with CITY staff in the performance of the Services and this Agreement and will be available to CITY staff and the CITY Representative at all reasonable times. All work prepared by CONSULTANT will be subject to inspection and approval by City Representative or his or her designees.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 208 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges, and agrees to the following:

A. CONSULTANT will perform all Services skillfully, consistent with and adhering to its professional standard of care, that is, the degree of care and skill ordinarily exercised by members of the same profession currently practicing at the same time and in the same or similar locality;
B. CONSULTANT shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY to perform the Services within the time limits established, and as provided herein. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Services performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative; C. CONSULTANT will perform all Services in a manner reasonably satisfactory to the CITY;
D. CONSULTANT will comply with all applicable federal, state, and local laws and regulations, including the conflict of interest provisions of Government Code §1090 and the Political Reform Act (Government Code §§81000 et seq.) CONSULTANT shall be liable for all violations of such laws and regulations in connection with CONSULTANT’s performance of the Services. If CONSULTANT performs any work knowing it to be contrary to such laws, rules and regulations, CONSULTANT shall be solely responsible for all costs arising therefrom; E. CONSULTANT understands the nature and scope of the Services to be performed under this Agreement as well as any and all schedules of performance; F. All of CONSULTANT’s employees and agents possess sufficient skill, knowledge, training, and experience to perform those services and tasks assigned to them by CONSULTANT; and
G. All of CONSULTANT’s employees and agents (including, but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications, and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications, and approvals will be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT will perform, at CONSULTANT’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 209 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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CONSULTANT’s employees, agents, contractors, subcontractors and subconsultants.

Such effort by CONSULTANT to correct any errors or omissions will be commenced immediately upon their discovery by either Party and, notwithstanding Section 5.2(B), will be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing and in her sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand, and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge, and experience necessary to perform the Services under the standard of care as articulated under section 2.4(A).

2.5 ASSIGNMENT: The skills, training, knowledge, and experience of CONSULTANT are material to CITY’s willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it will not assign or transfer, either directly or indirectly or by operation of law, this Agreement, or the performance of any of CONSULTANT’s duties or obligations under this Agreement, without the prior written consent of the CITY, which consent shall not be unreasonably delayed or withheld. In the absence of CITY’s prior written consent, any attempted assignment or transfer will be ineffective, null and void and will constitute a material breach of this Agreement.

2.6 SUBSTITUTION OF KEY PERSONNEL: CONSULTANT has represented to CITY that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, CONSULTANT may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and CONSULTANT cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONSULTANT at the request of the CITY. The key personnel for performance of this Agreement are as follows: Public Works Analyst I and Public Works Analyst II.

2.7 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR: The Services will be performed by CONSULTANT or under CONSULTANT’s strict supervision.

CONSULTANT will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT’s

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 210 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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4/2025
PSA – On Call/As Needed
competent and timely performance of the Services contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel performing the Services under this Agreement on behalf of CONSULTANT are not employees of CITY and will at all times be under CONSULTANT’s exclusive direction and control. CONSULTANT will pay all wages, salaries and other amounts due such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation insurance and the like. Notwithstanding any other CITY, state, or federal policy, rule, regulation, law, or ordinance to the contrary, CONSULTANT and any of its employees, agents, and subcontractors performing the Services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by CITY, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of CITY and entitlement to any contribution to be paid by CITY for employer contributions and/or employee contributions for PERS benefits.

2.8 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants is determined by the City Representative to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Services in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant will be promptly removed by CONSULTANT and will not be reassigned to perform any of the Services.

2.9 COMPLIANCE WITH LAWS: CONSULTANT will keep itself informed of and in compliance with all applicable federal, state, or local laws to the extent such laws control or otherwise govern the performance of the Services. CONSULTANT’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the U.S. Department of Housing and Urbanization.

2.10 NON-DISCRIMINATION: CONSULTANT represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.

2.11 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand, and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and will at all times remain, wholly independent contractors and are not officials, officers,

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 211 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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4/2025
PSA – On Call/As Needed
employees, departments, or subdivisions of CITY. CONSULTANT will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. CONSULTANT and all persons retained or employed by CONSULTANT will have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt, or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Before performing any Services contemplated under this Agreement, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article.

CONSULTANT will procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT will procure and maintain Commercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

B. Automobile Liability Insurance: For any owned, non-owned, or hired vehicles used in connection with the performance of this Agreement, CONSULTANT will procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per accident for bodily injury and property damage.

C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: A policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Services contemplated in this Agreement.

D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT will procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per claim.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 212 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
E. Cyber Security: Cyber Security coverage to include technology/professional liability insurance, intellectual property infringement, and data protection liability insurance. CONSULTANT shall procure and maintain coverage for cyber liabilities and financial loss resulting or arising from acts, errors, or omissions, in connection with data maintenance, hosting, software development and other information technology services provided under this agreement. Coverage shall include protection for liability arising from: intellectual property infringement arising out of software and/or content (excluding patent infringement and misappropriation of trade secrets); breaches of security; violation or infringement of any right, privacy, breach of federal, state, or foreign security and/or privacy laws or regulations including; data theft, damage, destruction, or corruption, including without limitation, unauthorized access, unauthorized use, identity theft, theft of personally identifiable information or confidential corporate information, transmission of a computer virus or other type of malicious code; and participation in a denial of service attack on a third party. The minimum limits shall be three million dollars ($3,000,000) for each and every claim and in the aggregate.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance will contain an endorsement naming the CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers as additional insureds.

3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement will be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance will be procured from insurers who, according to the latest edition of the Best’s Insurance Guide, have an A.M. Best’s rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor’s rating of no less than BBB according to the latest published edition the Standard & Poor’s rating guide. As to Workers’ Compensation Insurance/ Employer’s Liability Insurance, the CITY Representative is authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF CONSULTANT’S INSURANCE: Except with respect to Workers’ Compensation coverage, all policies of insurance provided by CONSULTANT will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers. Any insurance or self-insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers will be in excess of CONSULTANT’s insurance and will not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement will not prohibit CONSULTANT or CONSULTANT’s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss.

CONSULTANT hereby waives all rights of subrogation against CITY, its officials, officers, employees, agents, and volunteers.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 213 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed

3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands, and agrees, that CITY’s ability to verify the procurement and maintenance of the insurance required under this Article is a material consideration of this Agreement. Accordingly, CONSULTANT warrants, represents, and agrees that it will furnish CITY with certificates of insurance and endorsements evidencing the coverage required under this Article on ACORD-25 or forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf and will be on forms provided by the CITY if requested. Before performing any Services, CONSULTANT shall provide CITY with all certificates of insurance and endorsements referenced herein. Upon CITY’s written request, CONSULTANT will also provide CITY with copies of all required insurance policies and endorsements.

3.7 FAILURE TO MAINTAIN COVERAGE: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement effective upon notice.

3.8 SPECIAL RISKS OR CIRCUMSTANCES: City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Any amendment to the insurance requirements of this Article shall be memorialized and approved in the form of a written amendment to this Agreement, signed by the Parties. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void or invalid.

IV.

INDEMNIFICATION

4.1 CITY’s elected and appointed officials, officers, employees, agents, and volunteers (hereinafter, the “City Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all third party loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost to the extent arising out of or related to the CONSULTANT’s intentionally wrongful or negligent performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law. CONSULTANT acknowledges that CITY would not enter into this Agreement in the absence of CONSULTANT’s commitment to indemnify, defend and protect CITY as set forth herein Notwithstanding the foregoing, to the extent CONSULTANT’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 214 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
CONSULTANT. CONSULTANT’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents, or volunteers.

4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold harmless and defend the CITY Indemnitees from and against all third party liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) of every nature to the extent arising out of or in connection with CONSULTANT’s intentionally wrongful or negligent performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due to CONSULTANT under this Agreement, any amount due to CITY from CONSULTANT as a result of CONSULTANT’s failure to either pay CITY promptly for any costs associated with CONSULTANT’s obligations to indemnify the CITY Indemnitees under this Article or related to CONSULTANT’s failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

4.4 The obligations of CONSULTANT under this Article will not be limited by the provisions of any workers’ compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers.

4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. In the event CONSULTANT fails to obtain such indemnity obligations from others as required herein, CONSULTANT agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers from and against any and all third party claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property to the extent resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT’s subcontractors or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice, and selected from CONSULTANT's insurance carrier's panel counsel .

4.6 Notwithstanding any provision of law to the contrary, CONSULTANT shall have the right to control the defense and settlement of any action for which indemnification is sought, provided that it shall not enter into any settlement that requires an admission of wrongdoing by any City Indemnitees without that City Indemnitees' approval.

CONSULTANT’s obligations under this Agreement are contingent upon timely receipt of

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 215 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
notice of the claim for which indemnification is sought, such that defense of the claim is not prejudiced, and the reasonable assistance of the City Indemnitees in connection with the defense of the claim.

4.7 CITY does not and shall not waive any rights that it may possess against CONSULTANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.

4.8 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE: CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement, which notice shall specify the effective date of such termination and provide CONSULTANT a reasonable period of time to complete the performance of any ongoing Services. Upon such termination for convenience, CONSULTANT will be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination. CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below.

If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in section 6.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Services. CONSULTANT will be required to provide such Documents and Data within fifteen (15) calendar days of CITY’s written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service, or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service, or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 5.2B and 5.2C below or if a cure is

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 216 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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4/2025
PSA – On Call/As Needed
not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. CONSULTANT will cure the following Events of Defaults within the following time periods:
i. Within ten (10) business days of CITY’s issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY’s employees or agents with any information and/or written reports, documentation, or work product which CONSULTANT is obligated to provide to CITY or CITY’s employees or agents under this Agreement. Prior to the expiration of the 10-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.i. that exceeds seven (7) calendar days from the end of the initial 10-day cure period; or ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.

In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULTANT will include, but will not be limited to the following: (i) CONSULTANT’s refusal or failure to perform any of the services or tasks called for under the Scope of Services; (ii) CONSULTANT’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; and/or (v) CITY’s discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, misleading or erroneous in any material respect.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 217 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
C. CITY will cure any Event of Default asserted by CONSULTANT within forty-five (45) calendar days of CONSULTANT’s issuance of a Default Notice unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.5, above, will be cured by CITY within five (5) calendar days from the date of CONSULTANT’s Default Notice to CITY.

D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT’s performance under this Agreement pending CONSULTANT’s cure of any Event of Default by giving CONSULTANT written notice of CITY’s intent to suspend CONSULTANT’s performance (hereinafter, a “Suspension Notice”). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULTANT will be compensated only for those services and tasks which have been rendered by CONSULTANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY will operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.

E. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights, and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
i. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance;
iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULTANT’s breach of the Agreement or to terminate the Agreement; or

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 218 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
iv. The CITY may exercise any other available and lawful right or remedy.

CONSULTANT will be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

G. In the event CITY is in breach of this Agreement, CONSULTANT’s sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULTANT under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement will constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty, or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto will not operate to terminate any Article, Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data will be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term “Documents and Data” means and includes all reports, analyses, correspondence, plans, designs, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data.

CONSULTANT will require all subcontractors and subconsultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY will be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.

Notwithstanding any provision of this Agreement to the contrary, CONSULTANT shall have no liability, with respect to (i) the use by CITY of unfinished or draft Documents and

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 219 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
Data or (ii) the use of Documents and Data for any project other than that for which they were prepared or (iii) the use of Documents and Data after a change in applicable codes or law. For the avoidance of doubt, nothing in this Agreement shall be understood to grant CITY rights to pre-existing intellectual property of CONSULTANT, including CONSULTANT software and licensed software, or to any improvements thereto.

6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and will not be disclosed by CONSULTANT without prior written consent by CITY. CITY will grant such consent of disclosure as legally required. Upon request, all CITY data will be returned to CITY upon the termination or expiration of this Agreement.

CONSULTANT will not use CITY’s name or insignia, photographs, or any publicity pertaining to the Services in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.

6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULTANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., §§3789 et seq. and the California False Claims Act, Government Code §§12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement will be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:

CONSULTANT: CITY:

Interwest a SAFEbuilt Company
1 Jenner, Suite 160
Attn: Bill Evans
Phone: 786-350-8190
City of San Fernando
City Manager’s Office
117 Macneil Street
Attn: Kanika Kith
Phone: 818-898-7316
Such notices will be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, fortyeight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.

6.5 COOPERATION; FURTHER ACTS: The Parties will fully cooperate with one another and will take any additional acts or sign any additional documents as are reasonably necessary, appropriate, or convenient to achieve the purposes of this Agreement.

6.6 SUBCONTRACTING: CONSULTANT will not subcontract any of the Services contemplated under this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 220 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
subconsultants), if any, will contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY’S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other independent contractors in connection with the various projects worked upon by CONSULTANT.

6.8 CONFLICTS OF INTEREST:

A. CONSULTANT warrants, represents, and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid, nor has it agreed to pay, any company or person, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY will have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of CITY, during the term of his or her service with CITY, will have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

B. CONSULTANT may serve other clients, but none whose activities within the corporate limits of CITY or whose business, regardless of location, would place CONSULTANT in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code §81000 et seq.

C. CONSULTANT shall not employ any official or employee of the CITY during the Term of this Agreement or any extension term. No officer or employee of CITY shall have any financial interest in this Agreement that would violate Government Code §§1090 et seq. CONSULTANT warrants and represents that no owner, principal, partner, officer, or employee of CONSULTANT is or has been an official, officer, employee, agent, or appointee of the CITY within the twelve-month period of time immediately preceding the Effective Date. If an owner, principal, partner, officer, employee, agent, or appointee of CONSULTANT was an official, officer, employee, agent, or appointee of the CITY within the twelve-month period immediately preceding the Effective Date, CONSULTANT warrants that any such individuals did not participate in any manner in the forming of this Agreement. CONTRACTOR understands that, if this Agreement is made in violation of Government Code §1090 et seq., the entire Agreement is void and CONSULTANT will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and CONSULTANT will be required to reimburse the CITY for any sums paid to CONSULTANT.

CONSULTANT understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code §1090.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 221 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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4/2025
PSA – On Call/As Needed

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, will be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, will be in the Central District of California located in the City of Los Angeles, California.

6.11 ATTORNEYS’ FEES: If either Party commences an action against the other Party, legal, administrative, or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation will be entitled to have and recover from the losing Party reasonable attorneys’ fees and all other costs of such action.

6.12 SUCCESSORS AND ASSIGNS: This Agreement will be binding on the successors and assigns of the Parties.

6.13 NO THIRD-PARTY BENEFIT: There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.

6.14 CONSTRUCTION OF AGREEMENT: This Agreement will not be construed in favor of, or against, either Party but will be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.

6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions will continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement will be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void and invalid.

6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement will control.

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 222 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed

6.19 ENTIRE AGREEMENT: This Agreement, including all attached exhibits, constitutes the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, which may have been entered into between CITY and CONSULTANT prior to the execution of this Agreement. Any statements, representations, or other agreements, whether oral or written, made by either Party that is not embodied herein will not be valid or binding on the Parties. No amendment, modification or supplement to this Agreement will be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.16, above.

6.20 FORCE MAJEURE: The completion deadline for any Services assigned to CONSULTANT may be extended in the event of any delays due to unforeseeable causes beyond the control of CONSULTANT and without the fault or negligence of CONSULTANT, including but not limited to severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY. CONSULTANT shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The CITY Representative shall ascertain the facts and the extent of delay and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the CITY Representative such delay is justified. The City Representative’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall CONSULTANT be entitled to recover damages against the CITY for any delay in the performance of this Agreement, however caused, CONSULTANT’s sole remedy being extension of the Agreement pursuant to this Section.

6.21 COUNTERPARTS: This Agreement will be executed in three (3) original counterparts each of which will be of equal force and effect. No handwritten or typewritten amendment, modification, or supplement to any one counterpart will be valid or binding unless made to all three counterparts in conformity with Section 6.16, above. One fully executed original counterpart will be delivered to CONSULTANT and the remaining two original counterparts will be retained by CITY.
(SIGNATURES ON NEXT PAGE)

CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 223 of 520 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2429
On-Call Public Works Services

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PSA – On Call/As Needed
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF SAN FERNANDO: INTERWEST, A SAFEBUILT COMPANY:

By: By:

Kanika Kith, Interim City Manager
Name:

Date:

Title:

APPROVED AS TO FORM Date:

By:

Richard Padilla, City Attorney

Date:

Matt Causley
09/16/2025 | 1:43 PM PDT
Chief Operating Officer
09/17/2025 | 1:16 PM PDT
09/18/2025 | 10:05 AM PDT
CONTRACT NO. 2429(a)
Exhibit "A"
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CONTRACT NO. 2429(a)
Exhibit "A"
October 6, 2025 CC Special & Regular Mtg Page 225 of 520 CONTRACT NO. 2429
EXHIBIT “B”
Expanded Scope of Services – Interwest Consulting Group Additional Position Descriptions
Positions added through the amended agreement are as follows:

Interim Public Works Director – Approximately 20-30 hours per week The Interim Public Works Director will be responsible for overseeing the operations, maintenance, and capital improvement activities of the Public Works Department on an interim basis. This includes providing leadership and direction to staff across divisions such as engineering, streets, utilities, and facilities; managing departmental budgets; ensuring regulatory compliance; and coordinating with other departments, agencies, and the public. The Interim Director ensures continuity of services, supports ongoing projects, and assists in strategic planning and policy implementation until a permanent director is appointed.

Project Manager – Approximately 20 hours per week
The Capital Improvement Project Manager will be responsible for planning, coordinating, and overseeing the execution of capital improvement projects from inception through completion.

This includes managing budgets, schedules, contracts, and resources to ensure projects are delivered on time, within scope, and on budget. The Project Manager will coordinate with internal departments, external consultants, contractors, and regulatory agencies to ensure compliance with all applicable codes, standards, and stakeholder requirements. Key responsibilities include project scoping, oversight of design, cost estimation, procurement support, risk management, construction oversight, and reporting to senior leadership on project status and performance.

Grants Manager – Approximately 5 hours per week
The Grants Manager will have a primary focus on current water grants projects in the City. The Capital Improvement Grants Manager will be responsible for identifying, securing, managing, and reporting on grant funding to support capital improvement projects. This role involves developing grant proposals, ensuring compliance with grant requirements, coordinating with project managers and finance teams, and maintaining accurate records and reporting for all awarded funds. The Grants Manager will serve as the primary liaison between funding agencies and the organization, ensuring that all administrative and financial aspects of grants are properly managed to support timely and successful project delivery.

General Framework for Roles and Responsibilities
Interwest will utilize the following roles and responsibilities to guide their support services throughout the duration of the contract:

October 6, 2025 CC Special & Regular Mtg Page 226 of 520 CONTRACT NO. 2429
EXHIBIT “B”
• Assess Department Operations Quickly
Review current projects, staffing, budgets, and performance metrics to establish a baseline understanding of ongoing work and key challenges. • Ensure Continuity of Essential Services
Maintain reliable delivery of core services (e.g., water, sewer, street maintenance, solid waste) with minimal disruption during the leadership transition. • Engage with Key Stakeholders
Build immediate rapport with internal teams, city leadership, elected officials, contractors, and the public to foster trust and transparency. • Evaluate and Prioritize Capital Projects
Review capital improvement plans (CIP) and current project timelines to identify critical priorities, funding needs, and risk areas.
• Stabilize and Support Staff
Address morale, staffing gaps, or leadership vacuums within the department; ensure teams feel supported and aligned with short-term goals. • Review Regulatory Compliance
Confirm adherence to all local, state, and federal regulations (e.g., environmental, safety, procurement) to avoid liability or delays.
• Promote Safety and Risk Management
Reinforce safety protocols across all field operations and public infrastructure work zones to prevent accidents and liability.
• Enhance Communication and Transparency
Improve internal communication and public outreach, particularly around construction updates, service disruptions, and infrastructure planning. • Identify Quick Wins
Deliver a few visible improvements early on (e.g., sidewalk repairs, entryway sign repair, addressing resident complaints) to build confidence and momentum. • Develop a Strategic Transition Plan
Outline a clear roadmap for the acting role—including goals, timelines, hopefully soon coordination with an incoming permanent director.

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October 6, 2025 CC Special & Regular Mtg Page 230 of 520

AGENDA REPORT
ADMINISTRATIVE SERVICES DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1204 WWW.SFCITY.ORG REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ Interim City Manager o: Mayor Mary Mendoza and Councilmembers
From: Kanika Kith, Interim City Manager
By: Erica D. Melton, Director of Administrative Services Art Ziyalov, IT Systems Administrator

Date: October 6, 2025
Subject: Consideration to Approve a First Amendment to the Professional Services Agreement with Acorn Technology Services for IT Managed Services RECOMMENDATION:

It is recommended that the City Council:
a. Approve a First Amendment to the Professional Services Agreement with Acorn Technology Services (“Acorn”) (Attachment “A” - Contract No. 2301(a)) to increase project-based compensation by $65,091; and
b. Authorize the City Manager, or designee, to make non-substantive changes and execute the amendment and all related documents.

BACKGROUND:

1. On December 15, 2023, the City released a Request for Proposals (RFP) for IT Managed Services for a two (2) year initial term to begin on July 1, 2024, with three (3) one-year extension options. There were eight (8) firms that submitted proposals by the due date of February 9, 2024.

2. On May 20, 2024, City Council awarded the IT Managed Service Provider (MSP) professional services agreement to NetXperts LLC, which was terminated on October 1, 2024, due to ongoing performance issues, service agreement violations, accrual of service fees that the vendor unilaterally considered certain services outside the scope of the engagement, and the security risk posed to the City’s technology infrastructure and operations.

3. On October 7, 2024, the City Council approved Contract No. 2301 with Acorn Technology Services.

4. On June 30, 2025, the City Council approved the Fiscal Year (FY) 2025-2026 Budget, which included $218,225 for Professional Managed IT Services.

October 6, 2025 CC Special & Regular Mtg Page 231 of 520 Consideration to Approve a First Amendment to the Professional Services Agreement with Acorn Technology Services for IT Managed Services

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ANALYSIS:

Information technology (IT) services are a critical component to creating an efficient and effective business environment. While the City has put an emphasis on modernizing its technology backbone and infrastructure in recent years, including the creation of the IT Systems Administrator position, much of its operations are contracted through a managed service provider. IT Managed Service Providers (MSPs) are companies that provide a range of IT services and support to businesses. These services include, but are not limited to, network management, cybersecurity, data backup and recovery, cloud computing, software as a service (SaaS) management, hardware maintenance, helpdesk support, and more.

On October 7, 2024, the City entered into a two-year Agreement with Acorn Technology Services (Contract No. 2301) for IT managed services, reserving the right to extend the term of the contract for three additional one-year terms. The agreement also includes a contingency of 10% of the annual contracted services amount, for IT-related project costs.

In 2023, the City secured $223,000 in Urban Areas Security Initiative (UASI) cybersecurity grant funding, budgeted in Fiscal Year 2024-2025. These funds must be spent by December 2025.

During the Fiscal Year 2025-2026 budget discussions, staff recommended using a portion of the grant to upgrade the City’s Microsoft systems. Working with Acorn, staff identified moving all employees to Microsoft 365 through the Microsoft Government Cloud Community (GCC) as the next step in the City’s IT roadmap. The UASI grants manager confirmed this project is eligible for funding.

Microsoft 365 will provide secure, cloud-based access to email, files, and applications from any device, supporting both onsite and remote work. It also offers collaboration tools such as Teams, OneDrive, SharePoint, and Office applications, which will streamline communication and improve workflow. Automatic updates will keep the system current with the latest features and security protections.

To complete this one-time project, staff recommend extending the City’s existing agreement with Acorn. Acorn will manage the migration, including transitioning all user mailboxes, strengthening security with multi-factor authentication (MFA) and conditional access, and designing a City intranet. Acorn will also provide user training sessions and training materials to support staff in adopting Microsoft 365.

BUDGET IMPACT:

The Fiscal Year 2025-2026 Adopted Budget includes $218,225 for IT managed services from the General Fund. The Microsoft 365 transition is a one-time project and would be funded entirely as an allowable expense under the 2023 UASI Cyber Security Grant (110-135-3752-4270).

Sufficient funds are available through this grant for the $65,091 needed for amended professional services.

October 6, 2025 CC Special & Regular Mtg Page 232 of 520 Consideration to Approve a First Amendment to the Professional Services Agreement with Acorn Technology Services for IT Managed Services

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CONCLUSION:

It is recommended that the City Council approve a First Amendment to the Professional Services Agreement with Acorn Technology Services to increase the one-time project-related compensation by $65,091; and authorize the City Manager, or designee, to make non-substantive changes and execute the amendment and all related documents.

ATTACHMENTS:

A. Contract No. 2301(a)
October 6, 2025 CC Special & Regular Mtg Page 233 of 520 CONTRACT NO. 2301(a)

FIRST AMENDMENT PROFESSIONAL SERVICES AGREEMENT
(Parties: Acorn Technology Services)
(Engagement: IT Managed Services)
THIS FIRST AMENDMENT (hereinafter, “First Amendment”) to that certain agreement entitled “Professional Services Agreement – IT Managed Services” Contract No. 2301 dated October 7, 2024, (hereinafter, “Master Agreement”), is hereby made and entered into this 6th day of October 2025 (hereinafter, “Effective Date”) by and between CITY OF SAN FERNANDO, a municipal corporation (hereinafter, “CITY”) and ACORN TECHNOLOGY SERVICES (hereinafter, “CONSULTANT”). For purposes of this First Amendment, the capitalized term “Parties” shall be a collective reference to both CITY and CONSULTANT. The capitalized term “Party” may refer to either CITY or CONSULTANT, interchangeably.

RECITALS
This First Amendment is made and entered into with respect to the following facts:

WHEREAS, exaction of the Master Agreement was executed by the Parties on October 7, 2024 (A true and correct copy of the Master Agreement is attached and incorporated hereto as Exhibit “A”); and
WHEREAS, the Parties now wish to modify the Master Agreement by increasing a one-time compensation by SIXTY-FIVE THOUSAND NINETY-ONE DOLLARS ($65,091), as a result of additional Microsoft 365 project-related work; and
WHEREAS, the Parties acknowledge that during the term of the Agreement the COMPENSATION RATE may require adjustments; and
WHEREAS, approval authority is given to the City Manager to administratively approve such rate adjustments, provided that any adjustment does not exceed the compensation allocated within a fiscal year, without City Council approval, and that written notice of such adjustment is provided to the City at least 30 days prior to the effective date; and WHEREAS, the capitalized term “Contract” shall refer to the Master Agreement as amended by way of this First Amendment; and
WHEREAS, that the execution of this First Amendment was approved by the San Fernando City Council at its Regular Meeting of October 6, 2025, under Agenda Item No. 9.

October 6, 2025 CC Special & Regular Mtg Page 234 of 520 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2301(a) IT Managed Services

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SECTION 1. The Not-To-Exceed Sum set forth under Section 1.4 of the Master Agreement shall not exceed the one-time budgeted aggregate sum of up to SIXTY-FIVE THOUSAND NINETY-ONE DOLLARS ($65,091).

SECTION 2. Section 1.4 of the Master Agreement is hereby amended to authorize the City Manager to approve COMPENSATION RATE adjustments administratively, provided that any adjustment does not exceed the compensation allocated within a fiscal year, without City Council approval, and that written notice of such adjustment is provided to the City at least 30 days prior to the effective date.

SECTION 3. Except as otherwise set forth in this First Amendment, the Master Agreement shall remain binding, controlling, and in full force and effect. Section 1.4 of the Master Agreement notwithstanding, this First Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents (Entire Agreement). In the event of a conflict or inconsistency between the provisions of this First Amendment, including any and all attachments to this First Amendment and the provisions of the Master Agreement, including all exhibits attached to the Master Agreement, the provisions of the First Amendment and its attachments shall govern and control but only to the extent of the conflict and no further.

IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed on the day and year first appearing above.

CITY OF SAN FERNANDO ACORN TECHNOLOGY SERVICES:

By: By:

Kanika Kith, Interim City Manager
Name:

Date:

Title:

APPROVED AS TO FORM Date:

By:

Richard Padilla, City Attorney
Date:

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October 6, 2025 CC Special & Regular Mtg Page 238 of 520 CITY MANAGER’S OFFICE 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1202 WWW.SFCITY.ORG

AGENDA REPORT
REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ Interim City Manager To: Mayor Mary Mendoza and Councilmembers
From: Kanika Kith, Interim City Manager
By: Will Pettener, Assistant to the City Manager

Date: October 6, 2025
Subject: Consideration to Authorize Submittal of a Grant Application to the Los Angeles County Regional Park and Open Space District for their 2025 Competitive Grant Cycle
RECOMMENDATION:

It is recommended that the City Council:
a. Authorize the submittal of a grant application to the Los Angeles County Regional Park and Open Space District (RPOSD) in an amount not to exceed $5,000,000 for their 2025 competitive grant cycle for use towards Las Palmas Park Revitalization Project – Phase II and Recreation Park Roof Replacement & HVAC Upgrade; and
b. Authorize the City Manager, or designee, to make non-substantive changes and execute all related documents.

BACKGROUND:

1. In 2016, the City of San Fernando was deemed a “High Need” study area through the Los Angeles County Parks Needs Assessment.

2. On July 15, 2025, RPOSD announced $58.0 million investment to transform the future of parks, trails, and open space across Los Angeles County. The grant includes a minimum 30% of funding for communities designated as high or very high need for park and open space improvements.

ANALYSIS:

RPOSD administers competitive grant programs funded through Measure A, the Safe, Clean Neighborhood Parks and Beaches Measure of 2016. The 2025 Competitive Grant Cycle provides funding for park development, renovation, and critical infrastructure to enhance recreational access, public health, and community well-being. This grant also provides a critical opportunity to leverage outside funding to improve and modernize community parks and facilities, addressing October 6, 2025 CC Special & Regular Mtg Page 239 of 520 Consideration to Authorize Submittal of a Grant Application to the Los Angeles County Regional Park and Open Space District for their 2025 Competitive Grant Cycle

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aging infrastructure and expanding recreational opportunities without placing the full financial burden on the City’s limited resources.

By pursuing RPOSD grant funding, the City can continue to revitalize heavily used parks such as Las Palmas Park and Recreation Park, ensuring they remain welcoming and sustainable gathering places that meet the needs of current residents while strengthening the quality of life for future generations. Per grant program guidelines (Attachment “A”), the 2025 competitive grant cycle will enable the City to apply for and be awarded up to $5 million total across all programs. Grant applications can be submitted for any of the following funding categories:
• Planning and Design Competitive Grants (i.e., design, planning, cost estimates, CEQA, feasibility studies) for up to $500,000 per project proposal • Natural Lands, Local Beaches, Water Conservation, & Protection, including physical improvements made along, rivers, lakes, beach and coastal regions, or waterways for up to $4 million per proposal
• Regional Recreation, Multi-use Trails, & Accessibility grants, including physical improvements to parks, recreational facilities, other facilities with regional impact, trails, or multi-use sports venues, for up to $4 million per proposal RPOSD announced $58.0 million investment to transform the future of parks, trails, and open space across Los Angeles County with a minimum of 30% ($17.4 million) directed towards High or Very High Need Study Areas. As a designated High Needs study area, the City is well-positioned to utilize existing project designs, community needs, and access to Measure A Funding to present a competitive grant application. Public Works and Recreation and Community Services staff evaluated City park facilities and prioritized projects that align with both community needs and RPOSD grant criteria. Based on this review, staff recommend the following projects for submission:
• Las Palmas Park Revitalization Project – Phase II - $3.7 million • Recreation Park Roof Replacement & HVAC Upgrade - $990,000 These parks were identified as the highest need based on community use, programming impacts, and actioning feedback from existing community engagement efforts.

Project 1 - Las Palmas Park Revitalization Project – Phase II.

The City has successfully leveraged grant funding in the past for local park improvements, including Phase I of the Las Palmas Park Revitalization Project. While the initial $4.2 million grant awarded for the Las Palmas Revitalization Project in 2021 was intended to cover the entire cost of the proposed upgrades brought forward in 2021, inflationary pricing on supplies and related costs have forced the City to proceed in a phased approach.

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Phase I of the project is being constructed through Proposition 68 funds administered through the California Department of Parks & Recreation. After the initial community engagement and design portions of the project were completed, the remaining grant fund balance is $2.9 million.

The scope of Phase I’s work (Attachment “B”) includes the following elements:
• Utility enhancements
• Grading and drainage upgrades
• New playground area
• Basketball court and flat track roller derby track
• Installation of an obstacle course fitness area
• Picnic area shelter installation
The proposed Phase II of the project is estimated to cost an additional $3.7 million. The scope of the proposed Phase II work (Attachment “C”) includes the following elements:
• Upgrades to baseball field #1
• Upgrades to baseball field #2
• Installation of new practice backstop
Design for Phase II is 60% complete, with the remaining design completed through the existing budget in Phase I. Additionally, community engagement conducted in 2023 as part of the initial project plan, identified the elements listed above as major areas for improvement.

Project 2 - Recreation Park Roof and HVAC Replacement.

The second project proposal seeks funding to replace approximately 21,000 square feet of deteriorated roofing with a durable multi-ply cool roof system that meets or exceeds California Title 24 energy standards, and to install a modern, energy-efficient HVAC system. This project will address urgent facility needs while providing long-term climate resilience and establishing a designated cooling center for the surrounding community. The estimated project cost is $990,000, including roofing, HVAC, engineering, and project contingency. This investment advances public health, safety, and environmental justice by protecting a key community facility and ensuring equitable access to climate-resilient infrastructure.

The existing roof is past its service life, exhibiting leaks and structural vulnerabilities that threaten building operations and safety. The outdated HVAC system is unreliable, energy-inefficient, and incapable of providing adequate cooling during extreme heat events. Meanwhile San Fernando’s community faces high heat vulnerability, with large populations of low-income families, seniors, and children who lack access to adequate cooling at home. This project addresses these risks by:
• Protecting a key community facility with modern, climate-resilient infrastructure. • Installing a reflective cool roof that lowers heat absorption and supports energy efficiency.
• Providing a safe cooling center to safeguard public health.

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• Reducing long-term operational costs and environmental impacts through energyefficient upgrades.

The deadline to submit proposals for the grant is on October 30, 2025. The City may only apply for up to $4.0 million for any given project but may choose to apply for up to $5.0 million for the total cumulative application including all City projects. The two projects identified by staff allow for an application that is under the $5.0 million threshold, while also benefiting the community by addressing significant needs at two key City parks. If the awarded by the granting agency, the City will receive notice no later than March 2026.

BUDGET IMPACT:

There is no budget impact for submitting a grant application as it is included in each Department’s Work Plan. The RPOSD grant is a reimbursement grant and requires the City to enter into an agreement with LA County to administer the grant. Disbursement of grant funds occurs on a reimbursement basis only for costs incurred during the reporting period and is contingent upon the grantee complying will all grant requirements and appropriation of sufficient funds.

If the City is awarded grant funds through the RPOSD Grant Program, staff will return to City Council with a resolution to formally accept the award and appropriate funds.

CONCLUSION:

It is recommended that the City Council authorize the submittal of a grant application to RPOSD in an amount not to exceed $5.0 million for their 2025 competitive grant cycle; and authorize the City Manager, or designee, to make non-substantive changes and execute all related documents.

ATTACHMENTS:

A. RPOSD 2025 Competitive Grant Program Guidelines
B. Las Palmas Park Revitalization Project – Phase I Scope of Work C. Las Palmas Park Revitalization Project – Phase II Proposed Scope of Work October 6, 2025 CC Special & Regular Mtg Page 242 of 520 ATTACHMENT "A"
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TABLE OF CONTENTS
I. INTRODUCTION .......................................................................................................... 1 II. OVERVIEW ................................................................................................................. 2 Eligible Applicants (All Programs) .......................................................................................... 2 Key Criteria and Guidance..................................................................................................... 2 III. EXECUTIVE SUMMARY OF COMPETITIVE FUNDING PROGRAMS..................................... 5 IV. APPLICATION SUBMISSION RULES .............................................................................. 9 Application Timeline ............................................................................................................. 9 How to Submit...................................................................................................................... 9 Applicant Registration........................................................................................................... 9 Award Limits Per Grantee....................................................................................................10 Application Format .............................................................................................................11 Need Help?.........................................................................................................................11

APPENDICES
Appendix 1. Planning & Design Competitive Grant Program………………………………………………...12 Appendix 2. Category 3 - Natural Lands, Local Beaches, Water Conservation & Protection………..19 Appendix 3. Category 4 - Regional Recreation, Multi-Use Trails & Accessibility………………………..27 Appendix 4. Application Questions and Required Support Documents…………………………………..36 October 6, 2025 CC Special & Regular Mtg Page 244 of 520 Los Angeles County Regional Park and Open Space District 2025 COMPETITIVE GRANT PROGRAMS GUIDELINES 1
I. INTRODUCTION
The Los Angeles County Regional Park and Open Space District (RPOSD) is pleased to announce the 2025 Competitive Grant Programs (Grant Programs), which will provide a total of $58 million in Measure A funding to support planning and development efforts across Los Angeles County. These competitive funding programs aim to deliver measurable impact, promote park equity, and strengthen access to parks, natural areas, and regional recreation spaces throughout Los Angeles County. The 2025 Competitive Grant Guidelines (Guidelines) outline funding opportunities and application requirements for three distinct programs: one program designates funding for planning and design, and the other two are for shovel-ready development projects.

For more information on Measure A, the Grants Administration Manual (GAM), or to access the online application portal, visit https://rposd.lacounty.gov.

A Planning & Design grant opportunity to fund pre-development work that helps prepare high-quality development projects and supports stronger partnerships between nonprofits and public agencies.

Focus on shovel-ready development and timely planning and design to ensure funded projects are positioned for timely implementation and impact.

An increased award cap for development projects.

A scope-based evaluation approach that prioritizes the specific work funded by Measure A.

Revised scoring and project evaluation framework to continue promoting transparency and to ensure fair competition across project sizes.

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II. OVERVIEW
The Grant Programs will fund pre-construction planning and design work and shovel-ready development projects that align with the goals of Measure A, Category 3, and Category 4.

Eligible Applicants (All Programs)
Prospective applicants must be registered in RPOSD’s Grants Management System (GMS) to submit an application and be in Good Standing.

Key Criteria and Guidance

1. Multi-Benefit Projects
Applications must focus on multi-benefit projects that maximize climate pollution reduction and adaptation, carbon sequestration, heat-island reduction, stormwater capture, habitat protection and biodiversity, community health improvements, promote innovative public-private partnerships, or a combination thereof.

Authorized to acquire, develop, improve, or restore
parkland and open space within Los Angeles County
(includes Agencies of Record, cities, special districts, and Joint Powers Authorities).

With a mission related to:
o Environmental protection or restoration
o Parks, recreation, or community services
o Environmental education
o Gang prevention
o Job skills training for youth or veterans
o Conservation or tree planting
Provided they allow public access during non-school
hours (at a minimum).

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2. Identifying and Distinguishing Measure A Funded Scope Applicants must clearly isolate the specific work that will be funded by Measure A.

Applications will be evaluated based only on the impact, feasibility, and alignment of the proposed Measure A-funded work.

The goal is to avoid disproportionately high scores for large, complex projects where Measure A funding plays a minor or unclear role. Instead, applications should:
• Focus their narrative and documentation on the Measure A scope. • Be precise about what Measure A is paying for, and why that portion merits funding on its own.

If the funded scope is part of a larger project:
• Applicants may briefly describe the full project to help evaluators understand how the Measure A-funded component fits into a broader vision. • Evaluators will give credit only for the direct impact of the Measure A-funded work unless it is clearly demonstrated that the scope is foundational or catalytic—meaning it enables or unlocks broader improvements aligned with the intent of Measure A.

Applicants must distinguish between:

1. Measure A-funded scope: Specific activities, deliverables, timeline, and budget funded by this grant request.

2. Broader project (if applicable): Any additional scope, funding sources, or timelines that go beyond the Measure A request.

3. Level of Need
RPOSD will consider the level of need for park and open space access. A minimum of 30% of total funds in each grant program will be set aside for projects located in High or Very High Need Study Areas, as identified in the 2016 Countywide Parks Needs Assessment (PNA). In addition, results from the Parks Needs Assessment Plus (PNA+) will be used to inform evaluation of applications—particularly for rural, regional, and underrepresented communities—to ensure that unique needs and access disparities are meaningfully addressed across the County. Finally, level of need will also be considered in the scoring process.

4. Development Project Completion and Public Access Requirement All development proposals must result in tangible, publicly accessible improvements that will be completed and open to the public within the grant term. A grantee may not close out a development grant until the funded project area is open October 6, 2025 CC Special & Regular Mtg Page 247 of 520 Los Angeles County Regional Park and Open Space District 2025 COMPETITIVE GRANT PROGRAMS GUIDELINES 4
to the public and a Measure A deed restriction has been recorded in accordance with the Grant Agreement and the GAM.

Failure to meet the public access requirement may result in:
• Withholding of final payment or reimbursement, including retention; and • Loss of Good Standing status which will affect the grantee’s eligibility for future Measure A funding opportunities and suspension of reimbursements on other active grants held by the same grantee.

RPOSD will enforce these provisions to ensure that awarded funds lead to timely, visible public benefits and comply with the intent of Measure A.

5. Material Findings Disclosure
RPOSD understands that planning and development is dynamic and that projects may evolve after grant applications are submitted. To ensure transparency and maintain alignment with program goals, applicants/grantees are expected to notify RPOSD of any significant developments that arise at any point after application submission, including during the evaluation, award, or grant term. This includes developments that may:
• Substantially change the proposed or approved scope
• Affect the project’s timeline or milestones
• Raise concerns about project feasibility or timely implementation Notifications should be submitted in writing within 10 business days of discovery and include a summary of the issue, potential impacts, and any mitigation steps being considered. RPOSD will work collaboratively with applicants/grantees to adjust and respond to evolving project needs. However, failure to disclose material changes may affect grant award, agreement execution, reimbursement eligibility, Good Standing, and future funding access, consistent with RPOSD policies.

6. No “Double Dipping”
Measure A Competitive Grant funds may not be used to fund any project element for which funding has already been secured (either from Prop A, Measure A, or other sources). Applicants may only request funding for project elements distinct and separate from any project elements funded by other sources.

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III. EXECUTIVE SUMMARY OF COMPETITIVE FUNDING PROGRAMS
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IV. APPLICATION SUBMISSION RULES
To apply for any of the Grant Programs, applicants must adhere to the following submission requirements:

Application Timeline
• Release of the 2025 Competitive Grant Programs: July 15, 2025 • Grants Management System (GMS) Application Portal Opens: August 1, 2025 • Application Deadline: October 30, 2025, at 10AM (Pacific Time) • Anticipated award announcement: No later than March 2026 How to Submit
• All applications must be submitted online through GMS:
https://grantfunding.rposd.lacounty.gov.
• No paper or email submissions will be accepted.
• Applications will not be accepted after the deadline as the GMS application portal will be automatically disabled.
• Incomplete application submissions will not be considered; however, RPOSD at its sole discretion, may waive immaterial omissions.

Applicant Registration
• Applicants must be registered in GMS before submitting a grant application. • New applicants are strongly encouraged to complete registration by October 1, 2025, to ensure a timely application.
• Registration includes uploading documentation such as:
o Articles of Incorporation (for nonprofits)
o Proof of 501(c)(3) status
o Current IRS Form 990 (for nonprofits)
o LA County Vendor ID number
o Enrollment in Direct Deposit
• Assistance with registration may be requested at [email protected] or by visiting the GMS registration section on the RPOSD website.

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Award Limits Per Grantee
Applicants are not limited in the number of applications they submit. However, to promote equity and ensure broad distribution of funds, RPOSD is placing a limit on the total amount of funding that may be applied for and awarded to any single lead applicant across all Grant Programs:

Agencies of Record
serving 10 or more Study Areas
May apply for and be awarded up to
$15 million total across all programs.

Agencies of Record
serving 3 to 10 Study Areas
May apply for and be awarded up to
$10 million total across all programs.

Agencies of Record serving 1 to 2
Study Areas, eligible public agencies,
nonprofits, and organizations
May apply for and be awarded up to
$5 million total across all programs.

For Agencies of Record:
• An Agency of Record is the public park agency that is assigned noncompetitive funds for each Study Area. • An Agency of Record may not apply for funds in excess of the caps listed above.
• Each proposal must be for a distinct project and meet all eligibility and readiness requirements.
• No partial awards will be issued; projects will either be fully awarded or not awarded.
• These limits apply only to applications where the Agency of Record is the lead applicant.
• Applications for a proposed project in an Agency of Record’s Study Area will not count toward its cap if the lead applicant is not the Agency of Record.

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For Eligible Public Agencies, Non-Profits and Organizations (Other than Agencies of Record):
• An entity may not apply for funds in excess of the cap listed above. • An entity may propose projects in various Study Areas so long as the cap is not exceeded.
• Each proposal must be for a distinct project and meet all eligibility and readiness requirements.
• No partial awards will be issued; projects will either be fully awarded or not awarded.
• Entities should be mindful of the site control requirement of the application, as discussed below.

If an applicant submits proposals that collectively exceed the applicable funding cap, RPOSD, at its sole discretion during the administrative pass/fail review, shall remove and disqualify one or more applications, to bring the total request within the allowable cap.

Application Format
Each application must include:
• Responses to all required application questions
• Required document uploads (e.g., grant boundary map, maps, CEQA documents, community engagement plan, relevant support documents) All documents must be clearly labeled and uploaded to the correct sections. Missing or mislabeled documents may result in disqualification.

Need Help?
For general questions: [email protected].

Subject line: 2025 Competitive Grant Program
For applicants in High or Very High Need Study Areas seeking technical assistance or support, contact: [email protected].

Questions may also be submitted during scheduled webinars or online information sessions. All questions must be submitted by October 15, 2025, to ensure a response before the application deadline.

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PLANNING AND DESIGN COMPETITIVE GRANT PROGRAM

PLANNING AND DESIGN COMPETITIVE GRANT PROGRAM
Application Deadline: October 30, 2025, at 10AM (Pacific Time) Total Available Funds: $18 million
Category 3: $9 million
Category 4: $9 million
Purpose and Objectives
The Planning & Design Competitive Grant Program supports early-stage work that leads to Measure A-eligible, shovel-ready projects under Category 3 (Natural Lands, Local Beaches, Water Conservation & Protection) and Category 4 (Regional Recreation, Multi-use Trails & Accessibility).

The program helps applicants advance their projects to a stage where they are eligible and competitive for future development funding—from RPOSD or other funders. This includes pre-construction efforts such as design, permitting, environmental review, feasibility analysis, and meaningful community engagement.

All work funded through this program must directly support the creation or improvement of a Measure A-eligible development project and be in line with policies outlined in the GAM.

Minimum and Maximum Grant Amount
Minimum Request: $100,000
Maximum Request: $500,000
Required Match
No match required. Although leverage of federal or state, park, conservation, water, or climate funding programs is strongly encouraged. This includes applicant use of existing Measure A funding.

Performance Period
The grant term is 2 years from the date of agreement execution. All funded work must be completed within this timeframe. Grantees must submit regular status updates as a condition of reimbursement. The objective is to help applicants prepare for future development grant opportunities from RPOSD or other funders. While 2 years may be considered ambitious, this performance period is calibrated to align with upcoming local, state, and federal funding opportunities, and to encourage project momentum toward implementation.

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PLANNING AND DESIGN COMPETITIVE GRANT PROGRAM
Awarded applicants will have 4 months to execute a grant agreement following award notification. If awarded applicants fail to execute an agreement by that time, RPOSD may, in its sole discretion, reallocate funds to other applicants or sweep the funds.

Eligible Scope
Planning & Design grants may fund the following (but are not limited to):
• Conceptual design, schematic design, or design development • Preparation of construction documents and permitting
• CEQA and environmental studies
• Feasibility or technical assessments (e.g., geotechnical, hydrology, soil) • Site planning and cost estimation
• Community engagement and co-design activities, if directly tied to a capital project • All costs must comply with the GAM
Ineligible Scope
Activities ineligible for Measure A reimbursement are outlined in the GAM. They include, but are not limited to:
• General or long-range planning documents (e.g., General Plans, Park Master Plans) • Academic research or open-ended policy analysis
• Projects not intended to result in a capital improvement • Direct services or training programs
• Any activity inconsistent with Measure A or the GAM in RPOSD’s sole discretion Application Minimum Requirements (Pass/Fail)
Applications will be administratively reviewed prior to independent evaluation. Applicants must demonstrate the following to proceed to scoring:
 The proposed project aligns with Category 3 or 4 eligibility  Site control that supports long-term public access, providing a reasonable path to development. Applicants must satisfy this requirement through one of the following:
o Ownership of the property by the applicant; or
o A letter of intent, draft agreement, or executed agreement (lease, joint use, MOU), between applicant and owner that demonstrates a reasonable path towards development by either applicant, owner, or third party. Owner must provide a written statement that:
 Confirms understanding of the scope and intent of the proposed planning/design effort; and
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PLANNING AND DESIGN COMPETITIVE GRANT PROGRAM
 Affirms that the Owner has the capacity and is willing to implement or oversee future development resulting from the planning/design effort, if determined to be reasonable.
o RPOSD reserves the right to request additional documentation to verify that the relationship between the applicant and the public agency is appropriate and enforceable for the purposes of grant administration.  A complete timeline indicating the anticipated construction funding application date and project opening date
 A clear plan for CEQA and permitting, including completion timeline or justification if not applicable
 Disclosure of any known or potential adverse site conditions and proposed mitigation approach
 A complete application including all required forms, responses, and supporting documentation
 Proof of jurisdictional support to apply for, accept, and administer Measure A funds Any application that, in RPOSD’s sole discretion, does not meet the minimum mandatory requirements will be removed prior to the independent evaluation and will not be scored.

Project Cost Brackets
Applications may be evaluated in cost brackets to promote funding across different project sizes.

Bracket Total Grant Request
Small $100,000 - $249,999
Medium $250,000 - $399,999
Large $400,000 - $500,000
Checklist – Required Application Materials
 Project application (see Appendix 4)
 Proof of site control
 Community engagement documentation (if applicable)
 CEQA documentation (if applicable)
 PNA+ Map Screenshot (if applicable)
 Proof of jurisdictional support to apply for, accept, and administer Measure A funds Evaluation Criteria
To ensure that Measure A funds support the creation of transformative, shovel-ready development projects, applications for Planning and Design funds will be evaluated using October 6, 2025 CC Special & Regular Mtg Page 259 of 520 Los Angeles County Regional Park and Open Space District APPENDIX 1 16

PLANNING AND DESIGN COMPETITIVE GRANT PROGRAM
the following scoring framework. This framework prioritizes well-defined, feasible, and impactful planning and design activities that lead to transformative development aligned with Category 3 (Natural Lands, Beaches, Water Conservation) or Category 4 (Regional Recreation).

1. Impact, Clarity & Alignment of Funded Scope – 40 points Evaluates how clearly the applicant defines the specific work to be funded by Measure A, and whether that work is likely to result in tangible, high-quality deliverables that enable a shovel-ready, eligible development project under Category 3 or 4. Applicants must clearly isolate what Measure A is intended to fund and focus the narrative, budget, and documentation on that work.

Strong applications will:
 Clearly define the Measure A-funded scope using bullet points or tables.  Align the budget, timeline, and deliverables with the Measure A-funded scope (e.g., 50% construction drawings, CEQA Initial Study).
 Show how the planning effort enables multi-benefit or regional-scale development aligned with Category 3 or 4.

If part of a larger project, explain how the Measure A scope is foundational or catalytic to broader improvements—without overstating indirect impacts.

Evaluators will assess:

1. Clarity and specificity of the Measure A-funded scope.

2. Alignment with Category 3 or 4 goals scope with budget, schedule, and required uploads.

3. Potential of the planning deliverables to enable a shovel-ready, high-impact development project.

2. Readiness, Feasibility, and Long-Term Value – 20 points Assesses whether the proposed work is feasible within the 2-year grant term and whether it lays a strong foundation for a future development project. Also evaluates urgency, long-term public benefit, and whether the project will be well-positioned to compete for future development funds.

Strong applications will:
 Demonstrate site control.
 Clearly state CEQA status and include documentation (if applicable).  Identify known site constraints, if any, and provide a plan to assess or mitigate them.

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PLANNING AND DESIGN COMPETITIVE GRANT PROGRAM
 Describe how planning work fills a critical need and positions the project for development.

Evaluators will assess:

1. Whether site control, CEQA status, and site constraints are secured or clearly addressed.

2. Urgency and competitiveness of the planning effort for future development funding.

3. Whether the work will produce real, useable outputs that lead to long-term public improvements.

3. Community Engagement – 20 points
Assesses how community input informed or will inform the planning and design process.

Evaluates the intentionality, inclusiveness, and effectiveness of engagement efforts, both completed and proposed beyond the minimum requirements. This criterion prioritizes demonstrated engagement efforts that are complete, underway, or clearly scoped and budgeted as part of the proposed grant. Points will not be awarded for engagement strategies that are aspirational but not part of the grant-funded work.

Strong applications will:
 Provide documentation of engagement already completed, including input received and how it influenced the project.
 Include future engagement activities that are realistic, specifically scoped, and clearly funded as part of the proposed scope of work.
 Use accessible, culturally competent outreach methods (e.g., bilingual events, childcare, evening/weekend sessions).
 Partner with local CBOs, advisory councils, or other stakeholder groups.

Evaluators will assess:

1. The quality and inclusiveness of engagement already completed.

2. Whether future engagement is clearly described, scheduled, and funded within the project scope.

3. The degree to which community input has shaped—or will shape—project priorities, scope, or design.

4. Capacity & Implementation Plan – 20 points
Assesses whether the applicant team has the experience, structure, and processes to successfully deliver the proposed planning work.

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Strong applications will:
 Name key staff or consultants and describe their relevant qualifications.  Clearly outline roles, responsibilities, and procurement methods.  Provide examples of similar projects completed (especially public, grant-funded planning or design work).
 Demonstrate capacity to manage funds, monitor progress, and ensure accountability which include clear roles and responsibilities, evidence of strong procurement or contract management systems, and examples of similar completed design and development projects.

Evaluators will assess:

1. Administrative and technical capacity to complete the grant.

2. Experience in managing similar public planning/design efforts.

3. Quality control, tracking, and communication strategies.

5. Alignment with PNA and PNA+ (OPTIONAL – up to 32 points) a) High or Very High Need Study Areas based on Parks Needs Assessment – Up to 20 points
 20 points: Project is physically located in Very High Need Study Area.  15 points: Project is physically located in High Need Study Area.  Up to 10 points: Project is not located in a High/Very High Need area but clearly benefits those residents (based on visitation or partnerships). b) Parks Needs Assessment Plus (PNA+) Alignment – Up to 12 points Applicants are required to use the PNA+ Map Viewer available at https://lacountyparkneeds.org/pnaplus-maps/. Applicants must specifically reference location of proposed scope. If no specific location is known, applicant must provide a statement that provides justification for the geographic selection. Points awarded based on number of PNA+ indicators addressed for either “Regional Recreation Need” or “Rural Recreation Need.”  1 Indicator (6 pts)
 2 Indicators (8 pts)
 3+ Indicators (12 pts)
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CATEGORY 3 COMPETITIVE GRANT PROGRAM
CATEGORY 3 - NATURAL LANDS, LOCAL BEACHES, WATER

CONSERVATION AND PROTECTION COMPETITIVE GRANT PROGRAM
Application Deadline: October 30, 2025, at 10AM (Pacific Time) Total Available Funds:
$24 million
Purpose and Objectives
The Category 3 Competitive Grant Program funds shovel-ready development projects that protect, restore, or enhance natural lands, water resources, and open space throughout Los Angeles County. Eligible projects must result in the development, improvement, or restoration of multi-benefit parks, trails, and open space that provide meaningful public access while promoting community health, clean local water supplies, habitat protection, biodiversity, and environmental resilience. Priority will be given to projects offering the greatest regional benefit or serving the greatest regional need.

Minimum and Maximum Grant Amount
Minimum Request: $500,000
Maximum Request: $4,000,000
Required Match
No match required. Although leverage of federal or state, park, conservation, water, or climate funding programs is strongly encouraged. This includes applicant use of existing Measure A funding.

Performance Period
The grant term is 4 years from the date of agreement execution. All funded work must be completed within this period. Grantees must begin construction within 24 months of execution of grant agreement and submit regular status updates to RPOSD as a condition of reimbursement. Timely implementation is required to ensure public benefit and alignment with Measure A.

Awarded applicants will have 4 months to execute a grant agreement following award notification. If awarded applicants fail to execute an agreement by that time, RPOSD may, in its sole discretion, reallocate funds to other applicants or sweep the funds.

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CATEGORY 3 COMPETITIVE GRANT PROGRAM
Eligible Scope
Funds must be used for capital development, improvement, or restoration of park, trails, open space, and recreational land and facilities. Projects must include a clear public benefit and measurable environmental outcomes. Projects must result in publicly accessible improvements that are open for use by the public upon completion, consistent with a Measure A deed restriction. Examples of eligible work include, but are not limited to:
• River, stream, and coastal access improvements
• Habitat restoration and natural lands enhancement
• Stormwater capture and watershed protection
• Tree planting and urban greening in natural spaces
• Recreational and interpretive amenities in beach or open space areas • Lake and wetland restoration projects
• Sustainable improvements to local beaches or riparian corridors • All costs must comply with the GAM
Ineligible scope
Activities ineligible for Measure A reimbursement are outlined in the GAM. They include, but are not limited to:
• Projects that do not result in publicly accessible improvements or that restrict public access
• Acquisition of land or easements
• Recreational or park amenities that do not include clear environmental or natural resource benefits
• Any activity inconsistent with Measure A or the GAM in RPOSD’s sole discretion All projects must demonstrate a clear public benefit, measurable environmental outcomes, and comply with the terms of the Measure A deed restriction.

Application Minimum Requirements (Pass/Fail)
Applications will be administratively reviewed prior to independent evaluation. Applicants must demonstrate the following to proceed to scoring:
 The proposed project is eligible under Category 3
 CEQA is complete or categorically exempt (documentation required)  Site control that supports long-term public access and the ability to record a Measure A deed restriction. Applicants may satisfy this requirement through one of the following:
o Ownership of the property by the applicant; or
o An executed agreement (e.g., lease, joint-use, MOU) that:
 Provides verification that the applicant has at least 30 years of total site control, and
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CATEGORY 3 COMPETITIVE GRANT PROGRAM
 Has at least 5 years of remaining term at the time of application; or  If fewer than 5 years remain, the applicant must submit a narrative outlining specific steps and a clear timeline for renewing or extending the agreement, along with any supporting correspondence or documentation; or
o For “turnkey” projects where projects are implemented on behalf of a public agency on land owned by the public agency:
o Eligible organizations may apply and implement a project on behalf of a public agency that will serve as the entity responsible for the longterm operation, maintenance, and public accessibility of the completed improvements. In such cases, the application must include:
 A formal letter of support from the public agency, signed by an authorized official and indicating that the public agency:
 Willingly accepts the obligations of the Measure A grant, including the deed restriction and public access
requirements;
 Understands and agrees to maintain the funded
improvements consistent with Measure A and RPOSD
requirements; and
 Will assume responsibility for compliance, long-term
stewardship, and public access upon completion of the
project via an executed Assumption and Assignment
agreement with RPOSD.
o RPOSD reserves the right to request additional documentation to verify that the relationship between the applicant and the public agency is appropriate and enforceable for the purposes of grant administration.  Construction is scheduled to begin within 24 months of grant agreement execution  Complete application submitted, including all required documents and responses  Proof of jurisdictional support to apply for, accept and administer Measure A funds Any application that, in RPOSD’s sole discretion, does not meet the minimum mandatory requirements will be removed prior to the independent evaluation and will not be scored.

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CATEGORY 3 COMPETITIVE GRANT PROGRAM
Project Cost Brackets
Applications may be evaluated in cost brackets to promote funding across different project sizes.

Bracket Total Grant Request
Small $500,000 - $1,499,999
Medium $1,500,000 – $2,999,999
Large $3,000,000 - $4,000,000
Checklist – Required Application Materials
 Project application (see Appendix 4)
 Proof of site control
 Construction drawings showing at least 50% design completion (or comparable evidence of shovel-readiness)
 CEQA documentation (or categorical exemption)
 Grant boundary map
 Community engagement documentation (if applicable)
 PNA+ Map Screenshot (if applicable)
 Proof of jurisdictional support to apply for, accept, and administer Measure A funds Evaluation Criteria
To ensure that Measure A funds support high-impact, shovel-ready development projects with measurable environmental, community, and equity outcomes, applications submitted under Category 3 – Natural Lands, Local Beaches, Water Conservation & Protection will be evaluated based on the following criteria. This framework prioritizes projects that clearly define what Measure A is funding, demonstrates multi-benefit outcomes, addresses critical environmental and community needs, and are ready to implement within the grant term.

1. Impact, Clarity, and Alignment of Funded Scope – 35 points Assesses how clearly the Measure A-funded scope is defined and whether the proposed work will result in measurable outcomes aligned with Category 3 goals.

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CATEGORY 3 COMPETITIVE GRANT PROGRAM
 If part of a larger project, clarify how the Measure A scope is foundational or catalytic to broader efforts—without overstating indirect impacts.

Evaluators will assess:

1. Clarity and specificity of the Measure A-funded scope (budget, drawings, timeline).

2. Alignment of scope with the submitted budget, schedule, and design documents.

3. The degree to which the funded scope leads to or creates Category 3-eligible benefits.

4. Whether the scope includes outcomes such as water quality, habitat restoration, or public access improvements that are attributable to the Measure A investment.

Required support documents:
 Construction drawings showing at least 50% design completion (or comparable evidence of shovel-readiness)
 Detailed project scope and narrative
 Project budget and timeline

2. Multi-Benefit Value – 35 points
Assesses the breadth and quality of co-benefits delivered by the Measure A-funded scope, such as habitat enhancement, stormwater capture, improved access, or climate resilience.

Strong applications will:
 Demonstrate at least three types of measurable co-benefits aligned with Category 3 objectives.
 Provide quantitative or descriptive metrics (e.g., acres restored, number of new access points, trees planted, etc.).
 Explain how the proposed scope contributes to environmental justice, public health, and/or park equity.
 Quantify or describe expected impact directly attributable to Measure A grant (e.g., square feet of restored habitat, gallons of stormwater managed, number of residents gaining new access).
 Describe interpretive or culturally relevant design features that improve the experience and inclusion of diverse users.
 Describe how prior community engagement efforts have shaped the proposed project.

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CATEGORY 3 COMPETITIVE GRANT PROGRAM
Evaluators will assess:

1. Environmental benefits (e.g., watershed protection, tree canopy, habitat).

2. Community benefits (e.g., improved mental and physical health, equitable access).

3. Whether the project delivers measurable, sustained improvements in both realms.

Required support documents:
• Grant boundary map clearly showing limit of work for all Measure A-funded scope

3. Readiness and Feasibility – 20 points
This criterion evaluates whether the project is ready to begin construction within 24 months of grant agreement execution and whether any constraints are adequately addressed.

Strong applications will:
 Provide documentation of site control and CEQA clearance (or categorical exemption).
 Identify any site-specific risks (e.g., permitting delays, soil issues) and provide realistic mitigation strategies.
 Present a clear, realistic construction timeline.
 Present a clear, realistic project budget outlining all funding sources and include appropriate levels of contingency.

Evaluators will assess:

1. Site readiness, including CEQA and permitting status.

2. Level of certainty and completeness of design and approvals.

3. Whether the project will deliver timely and lasting public benefit.

4. Rigor of timeline and budget, including tolerances for unforeseen.

Required support documents:
 CEQA documentation
 Proof of site control
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CATEGORY 3 COMPETITIVE GRANT PROGRAM

4. Capacity and Project Delivery – 10 points
Evaluates the applicant’s experience, team capacity, and project management approach.

Strong applications will:
 Identify qualified project leads or consultants with experience in similar open space, beach, or natural resource development projects.  Describe procurement, fiscal oversight, and progress-tracking procedures.  Provide evidence of successful delivery of similar projects, particularly publicly funded or environmentally complex efforts.

Evaluators will assess:

1. Team qualifications and role clarity.

2. Administrative and technical capacity to execute the proposed project.

3. Past success with comparable efforts.

5. Alignment with PNA and PNA+ (OPTIONAL - up to 32 points) a) High or Very High Need Study Areas based on Parks Needs Assessment – Up to 20 points
 20 points: Project is physically located in Very High Need Study Area.  15 points: Project is physically located in High Need Study Area.  Up to 10 points: Project is not located in a High/Very High Need area but clearly benefits those residents (based on visitation or partnerships). a) Parks Needs Assessment Plus (PNA+) Alignment – Up to 12 points Applicants are required to use the PNA+ Map Viewer available at https://lacountyparkneeds.org/pnaplus-maps/. Applicants must specifically reference location of proposed scope. If no specific location is known, applicant must provide a statement that provides justification for the geographic selection. Points awarded based on number of PNA+ indicators addressed for either “Regional Recreation Need” or “Rural Recreation Need.”  1 Indicator (6 pts)
 2 Indicators (8 pts)
 3+ Indicators (12 pts)
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CATEGORY 4 COMPETITIVE GRANT PROGRAM
CATEGORY 4 – REGIONAL RECREATION, MULTI-USE TRAILS &

ACCESSIBILITY COMPETITIVE GRANT PROGRAM
Application Deadline: October 30, 2025, at 10AM (Pacific Time) Total Available Funds
$16 million
Purpose and Objectives
The Category 4 Competitive Grant Program supports shovel-ready capital projects that expand or improve regional recreation, multi-use trail systems, and public accessibility to parks and open space across Los Angeles County.

Projects must demonstrate regional significance by serving diverse populations across multiple communities, enhancing multi-jurisdictional trail systems, or delivering substantial recreational improvements that benefit the county at large. Regional projects often connect jurisdictions, serve destination users, or represent a unique resource of countywide value.

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CATEGORY 4 COMPETITIVE GRANT PROGRAM
Eligible Scope
Funds must be used for capital development, improvement, or restoration of regional park and trail infrastructure. Projects must demonstrate broad public benefit, strong regional utility, and long-term public access. Eligible activities include but are not limited to:
• Development of new or improved multi-use trails (pedestrian, bicycle, equestrian) • Regional park improvements and amenities. Regional parks are defined as facilities with:
o At least 100 contiguous acres and have three or more active recreational amenities.
o A service area or user base that extends beyond the local neighborhood or city.
• ADA-compliant access paths, connections, or trail enhancements • Rehabilitation, upgrade, or enlargement of substantial public recreational facilities that serve regional or multi-community populations. These facilities are typically characterized by their size, complexity, and intensity of use, and may include—but are not limited to—sports complexes, aquatic centers, amphitheaters, regional skate or bike parks, multi-field athletic venues, or large-scale day-use areas within regional parks
• Facilities that serve regional populations or connect multiple jurisdictions • Interpretive features or signage that enhance accessibility and regional identity • All costs must comply with the GAM
Ineligible Scope
Activities ineligible for Measure A reimbursement are outlined in the GAM. They include, but are not limited to:
• Projects that do not serve a regional-scale population or fail to demonstrate regional significance
• Improvements to parks or facilities that serve only local, neighborhood, or singlejurisdiction use • Projects that do not result in publicly accessible improvements • Capital improvements that are not eligible for a Measure A deed restriction • General operations, programming, or maintenance
• Acquisition of land or easements
• Routine facility upgrades without a broader regional access, recreation, or connectivity purpose (e.g., small-scale restroom upgrades or resurfacing courts in a neighborhood park)
• Administrative buildings, office space, or infrastructure not tied to regional recreational use
• Any activity inconsistent with Measure A or the GAM in RPOSD’s sole discretion.

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CATEGORY 4 COMPETITIVE GRANT PROGRAM
Projects must clearly demonstrate broad regional impact, long-term public access, and alignment with the goals of Category 4 to be eligible for funding.

Application Minimum Requirements (Pass/Fail)
Applications will be administratively reviewed prior to independent evaluation. Applicants must demonstrate the following to proceed to scoring:
 The proposed project is eligible under Category 4
 Qualifies as regional scale
 CEQA is complete or categorically exempt (documentation required)  Site control that supports long-term public access and the ability to record a Measure A deed restriction. Applicants may satisfy this requirement through one of the following:
o Ownership of the property by the applicant; or
o An executed agreement (e.g., lease, joint-use, MOU) that:
 Provides verification that the applicant has at least 30 years of total site control, and
 Has at least 5 years of remaining term at the time of application; or  If fewer than 5 years remain, the applicant must submit a narrative outlining specific steps and a clear timeline for renewing or extending the agreement, along with any supporting correspondence or documentation; or
o For “turnkey” projects where projects are implemented on behalf of a public agency:
o Eligible organizations may apply and implement a project on behalf of a public agency that will serve as the entity responsible for the longterm operation, maintenance, and public accessibility of the completed improvements. In such cases, the application must include:
 A formal letter of support from the public agency, signed by an authorized official and indicating that the public agency:
 Willingly accepts the obligations of the Measure A grant, including the deed restriction and public access
requirements;
 Understands and agrees to maintain the funded
improvements consistent with Measure A and RPOSD
requirements; and
 Will assume responsibility for compliance, long-term
stewardship, and public access upon completion of the
project via an executed Assumption and Assignment
agreement with RPOSD.
o RPOSD reserves the right to request additional documentation to verify that the relationship between the applicant and the public agency is appropriate and enforceable for the purposes of grant administration.

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CATEGORY 4 COMPETITIVE GRANT PROGRAM
 Construction is scheduled to begin within 24 months of grant agreement execution  Complete application submitted, including all required documents and responses  Proof of jurisdictional support to apply for, accept and administer Measure A funds Any application that, in RPOSD’s sole discretion, does not meet the minimum mandatory requirements will be removed prior to the independent evaluation and will not be scored.

Regional Scale Requirement
Category 4 is intended to fund development projects that serve, connect, or impact a region at large—beyond a single neighborhood, city, or park agency boundary. Projects consisting of small-scale neighborhood improvements—such as playgrounds, fitness zones, or localized upgrades within a neighborhood park—will not be considered regional in scale unless they are clearly part of a broader regional system and meet the criteria below.

To qualify as regional-scale, a project must demonstrate benefits that go beyond the immediate community, advance countywide or regional goals, and be designed to serve a broad and diverse population—not just nearby residents.

Projects must meet at least three of the following criteria to be considered regional-scale:
 Serve multiple jurisdictions or census-defined communities  Demonstrated usage by visitors from beyond the local area  Advance a priority identified in a Countywide, State, or Regional Plan  Address a regional service gap, provide a key access point to a regional resource, or create a linkage within a larger regional network
 Involve partnerships or joint implementation with other cities, counties, or regional agencies
Applications that do not meet the Regional Scale Requirement will be disqualified and not considered for Category 4 funding.

Project Cost Brackets
Applications will be categorized into cost brackets for evaluation.

Bracket Total Grant Request
Small $500,000 - $1,499,999
Medium $1,500,000 – $2,999,999
Large $3,000,000 - $4,000,000
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CATEGORY 4 COMPETITIVE GRANT PROGRAM
Checklist – Required Application Materials
 Project application (see Appendix 4)
 Proof of site control
 Construction drawings showing at least 50% design completion (or comparable evidence of shovel-readiness)
 CEQA documentation (or categorical exemption)
 Grant boundary map
 Community engagement documentation (if applicable)
 PNA+ Map Screenshot (if applicable)
 Proof of jurisdictional support to apply for, accept, and administer Measure A funds Evaluation Criteria
To ensure that Measure A funds support transformative, shovel-ready capital projects that expand access to regional recreation and multi-use trails across Los Angeles County, Category 4 applications will be evaluated based on the following scoring criteria. This framework prioritizes projects that are clearly scoped, delivers regional-scale improvements, reflects broad community input, and advances environmental, health, and accessibility outcomes across jurisdictions.

1. Impact, Clarity, and Alignment of Funded Scope – 30 points Evaluates how clearly the Measure A-funded scope is defined, and whether it supports a regional amenity that aligns with Category 4 goals.

Strong applications will:
 Clearly isolate the Measure A-funded scope using a list with deliverables, budget, and schedule.
 Describe how the Measure A-funded scope either achieves or catalyzes Category 4-aligned outcomes.
 If part of a larger project, clarify how the Measure A scope is foundational or catalytic to broader efforts—without overstating indirect impacts.  Define how the funded work contributes to a regional park, trail network, or countywide recreation asset.
 Clarify how the scope enables development of a publicly accessible facility of regional significance.

Evaluators will assess:

1. Clarity and specificity of the Measure A-funded scope (budget, timeline, drawings).

2. Whether the work is part of a larger regional plan or regional asset.

3. Quality of access to Measure A funded scope.

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CATEGORY 4 COMPETITIVE GRANT PROGRAM
Required Support Documents:
 Construction drawings showing at least 50% design completion (or comparable evidence of shovel-readiness)
 Grant boundary map

2. Regional Scale – 25 points
Assesses how the project enhances regional access and physical connections, particularly those linking high-priority natural, urban, and recreational areas (e.g., County Parks, National Forests, coastal areas).

Strong applications will:
 Provide new or improved multi-use trails, ADA linkages, trailheads, or connections to existing regional facilities.
 Include amenities that enhance access (e.g., signage, lighting, safety features).  Demonstrate how the project improves or expands connections across jurisdictions or between urban and natural areas.

Evaluators will assess:

1. Regional scale and function of the improvements.

2. Degree to which the project improves access to major trail networks or parks.

3. Quality and safety of access features (e.g., lighting, signage, staging areas).

3. Multi-Benefit Impacts – 15 points
Evaluates the range and quality of benefits delivered by the project, such as community health, environmental sustainability, and social resilience.

Strong applications will:
 Address at least three distinct areas of benefit: e.g., stormwater management, ADA improvements, active transportation, climate mitigation, or social cohesion.  Include clear design strategies that promote safety, accessibility, inclusion, and climate resilience.
 Demonstrate how these features are integrated into the Measure A-funded scope.
 Describe interpretive or culturally relevant design features that improve the experience and inclusion of diverse users.
 Describe how prior community engagement efforts have shaped the proposed project.

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CATEGORY 4 COMPETITIVE GRANT PROGRAM
Evaluators will assess:

1. Presence of physical features that reduce heat, improve air/water quality, support biodiversity, or other multi-benefit features.

2. Integration of design features promoting social cohesion or health (e.g., gathering areas, exercise equipment).

3. Strength of design elements that support underserved or patrons of all physical abilities.

4. Readiness, Feasibility & Timeliness – 20 points
Evaluates whether the project is shovel-ready and able to begin construction within 24 months.

Strong applications will:
 Demonstrate complete or exempt CEQA status and provide proof of site control.  Identify any adverse conditions (e.g., permitting, topography, environmental remediation) and present a plan to address them.
 Include a clear construction schedule and realistic budget, with contingencies.

Evaluators will assess:

1. CEQA and site control status.

2. Risk mitigation strategies.

3. Realism of construction start and closeout milestones.

4. Rigor and sophistication of construction budget.

Required Support Documents:
 CEQA documentation
 Proof of site control
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CATEGORY 4 COMPETITIVE GRANT PROGRAM

5. Capacity & Project Delivery – 10 points
Assesses whether the applicant and project team can deliver a complex, regional-scale project on time and within budget without sacrificing community involvement.

Strong applications will:
 Identify staff and consultants with experience delivering similar regional facilities or trail projects.
 Describe procurement methods, oversight systems, and delivery strategies.  Provide past examples of successful publicly funded projects with comparable complexity.
 List partners and their roles.

Evaluators will assess:

1. Team qualifications and delivery model.

2. Ability to coordinate across jurisdictions or agencies.

3. History of on-time/on-budget delivery.

6. Alignment with PNA and PNA+ (OPTIONAL - up to 32 points) a) High or Very High Need Study Areas based on Parks Needs Assessment – Up to 20 points
 20 points: Project is physically located in Very High Need Study Area.  15 points: Project is physically located in High Need Study Area.  Up to 10 points: Project is not located in a High/Very High Need area but clearly benefits those residents (based on visitation or partnerships). b) Parks Needs Assessment Plus (PNA+) Alignment – Up to 12 points Applicants are required to use the PNA+ Map Viewer available at https://lacountyparkneeds.org/pnaplus-maps/. Applicants must specifically reference location of proposed scope. If no specific location is known, applicant must provide a statement that provides justification for the geographic selection. Points awarded based on number of PNA+ indicators addressed for either “Regional Recreation Need” or “Rural Recreation Need.”  1 Indicator (6 pts)
 2 Indicators (8 pts)
 3+ Indicators (12 pts)
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APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS
Planning and Design
Application Questions and Required Support Documents

1. What specific planning and design activities will be funded by this grant? Check all that apply:
 Conceptual or schematic design
 Design development or construction documents
 CEQA analysis or documentation
 Site feasibility or technical assessments
 Permitting
 Community engagement related to design
 Other (please describe): __________

2. What Category is this application for?
 Natural Lands, Local Beaches, Water Conservation & Protection (Category 3)  Regional Recreation, Multi-use Trails & Accessibility (Category 4)

3. Describe the scope of work funded by Measure A. (500 words maximum) • Be specific. Use bullet points for clarity.
• Clearly define activities and deliverables of Measure A-funded scope. • If this is part of a larger effort, explain the direct benefits of Measure A funding. • Include what the work will produce (e.g., 50% construction documents, Hydrology study).
• Describe how this planning phase will enable a larger future Measure A eligible development project.

4. Provide a project timeline (with milestones) and be specific on what Measure A will fund.

5. Provide a project budget.
• Clearly identify costs covered by Measure A funding request and any additional funding sources required for project completion.
• Identify if additional funding sources are secured or identified. • List contingency assumptions if applicable.

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APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS

6. What is the CEQA status of the work funded by this grant?  Completed (upload documentation)
 Not required (provide justification, 100 words maximum)  To be completed with this grant

7. Describe site control for the proposed project.
 Property Owner
 Letter of intent, draft agreement, or executed agreement that is consistent with the requirements for site control as defined in the Guidelines.

Narrative: Explain how long-term public access will be secured (max 200 words).

Upload required:
• Proof of site control

8. Are there known site constraints (e.g. contamination, topography)? Are there known site constraints that may affect project implementation (e.g., contamination, permitting, topography)?
 Yes – Describe constraints and your mitigation plan (500 words maximum)  No – Due diligence has been performed and no major constraints exist. Describe what due diligence was performed (500 words maximum)
 Unknown – Site not yet fully assessed. Describe your plan to characterize and address (500 words maximum)

9. Describe how funding the proposed work will make the project more competitive for Measure A development funds or other capital funding in the future? (500 words maximum)

10.What community engagement has occurred for this project to date? Describe methods, number and type of participants, and how prior input has informed the project. (Prior support documents may be submitted) (500 words maximum)

11.What community engagement will occur as part of this grant? (500 words maximum)

12.Are you partnering with any community-based organizations (CBOs) or stakeholder groups?
 Yes (Name and describe role(s))
 No

13.Who will manage this project? Provide names, roles, and relevant experience of key staff or consultants. (Max 500 words)
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APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS

14.Describe your project delivery approach. (500 words maximum) • How will you procure, oversee, and track the work?
• Include fiscal and quality control procedures.

15.Describe your past experience delivering similar planning or technical projects funded by public grants. (500 words maximum)

16.Is the project site located in a High or Very High Need Study Area? Provide address and APN, if possible.
 Very High Need
 High Need
 No
 If not, will the project meaningfully benefit High/Very High Need residents? Explain (500 words maximum) including partnerships, visitation patterns, and outreach strategies.

Location (100 words maximum):

17.Check the applicable indicators based on PNA+ Map Viewer for either Regional Recreation Need for Rural Recreation Need:
 1 indicator
 2 indicators
 3+ indicators
Upload required:
• PNA+ screenshot.

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APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS
Category 3 - Natural Lands, Local Beaches, Water
Conservation and Protection Competitive Grant Program
Application Questions and Required Support Documents

1. Describe the specific scope of work that Measure A will fund. (500 words maximum) • Be specific. Use bullet points for clarity.
• Clearly define activities and deliverables of Measure A-funded scope. • If this is part of a larger effort, explain the direct benefits of Measure A funding.

Upload required:
• Boundary map for the Measure A-funded scope

2. Describe the Category 3 benefits directly attributable to this funding. Do not include scope elements that are not directly a result of Measure A funds. (500 words maximum)
• What environmental or community outcomes will result from this grant scope? • What multi-benefit outcomes the project will deliver (e.g., water quality improvement, heat mitigation, community health).
• Include quantitative or descriptive metrics (e.g., number of trees, acres restored, number of residents gaining access).

3. Describe the shovel readiness of the project. (250 words maximum) Upload required:
• Construction drawings showing at least 50% design completion (or comparable evidence of shovel-readiness)

4. Provide a detailed project timeline, including major milestones such as when construction will begin and when the project will open to the public.

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APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS

6. What is the CEQA status of this project?
 Complete – CEQA documentation uploaded
 Categorically exempt – Upload explanation and exemption type (500 words maximum)
 Not complete – Upload CEQA schedule and responsible party Upload required:
• CEQA documentation or exemption

7. What is the current land tenure status of the project site?  Property Owner
 Executed agreement between applicant and property owner, consistent with the requirements for Site Control as defined in the Guidelines  Public agency sponsored development that is consistent with the requirements for site control as defined in the Guidelines
Narrative (max 200 words): Explain how long-term public access will be secured and maintained.

Upload required:
• Proof of site control

8. Are there known site constraints that may affect project implementation (e.g., contamination, permitting, topography)?
 Yes – Describe constraints and your mitigation plan (500 words maximum)  No – Due diligence has been performed and no major constraints exist. Explain what due diligence was performed (500 words maximum)
 Unknown – Site not yet fully assessed. Describe your plan to characterize and address (500 words maximum)

9. Describe how Measure A funding would advance or unlock larger project phases or plans. (500 words maximum)
• Include examples of how it complements existing regional, watershed, or conservation plans.
• Explain why now is the right time to fund this project.

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APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS

10.What community engagement has occurred for this project? (500 words maximum) • Summarize outreach conducted to date.
• Include methods used, demographics or populations engaged, and how input has shaped the project.

Optional upload: Community engagement summary, meeting materials

11. Are you partnering with any community-based organizations (CBOs) or stakeholder groups?
 Yes (Name and describe role(s))
 No

12. Who will manage this project? Provide names, roles, and relevant experience of key staff or consultants. (500 words maximum)

13. Describe your project delivery approach. (500 words maximum) • How will you procure, oversee, and track the work?
• Include fiscal and quality control procedures.

14. Describe your past experience delivering similar development projects, especially those funded by public or environmental grant programs. (500 words maximum)

15. Is the project site located in a High or Very High Need Study Area as determined by Parks Needs Assessment? Provide address and APN, if possible.  Very High Need
 High Need
 No
 If not, will the project meaningfully benefit High/Very High Need residents? Explain (500 words maximum) including partnerships, visitation patterns, and outreach strategies.

Location (100 words maximum):

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APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS

16. Check the applicable indicators based on PNA+ Map Viewer for either Regional Recreation Need for Rural Recreation Need:
 1 indicator
 2 indicators
 3+ indicators
Upload required:
• PNA+ screenshot.

October 6, 2025 CC Special & Regular Mtg Page 287 of 520 Los Angeles County Regional Park and Open Space District APPENDIX 4 44

APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS
Category 4 – Regional Recreation, Multi-Use Trails &
Accessibility Competitive Grant Program
Application Questions and Required Support Documents

1. Describe the scope of work funded by Measure A. (500 words maximum) • Be specific. Use bullet points for clarity.
• Clearly define activities and deliverables of Measure A-funded scope. • If this is part of a larger effort, explain the direct benefits of Measure A funding. • Be clear how this scope meets the requirement of “regional-scale” Upload required:
• Boundary map for the Measure A-funded scope

2. Describe the Category 4 benefits directly attributable to this funding. Do not include scope elements that are not directly a result of Measure A funds. (500 words maximum)
• What specific improvements to connectivity, recreation, or access will this scope deliver?
• How do these improvements serve visitors from multiple jurisdictions or across the county?
• Include regional scale, user base, and anticipated impacts using quantitative or descriptive metrics (e.g., miles of trail, daily visitors, connections to regional facilities).

3. Describe the shovel readiness of the project. (250 words maximum) Upload required:
• Construction drawings showing at least 50% design completion (or comparable evidence of shovel-readiness)

4. Provide a detailed project timeline, including major milestones such as when construction will begin and when the project will open to the public.

October 6, 2025 CC Special & Regular Mtg Page 288 of 520 Los Angeles County Regional Park and Open Space District APPENDIX 4 45

APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS

Upload required:
• Proof of site control

9. Describe how Measure A funding would advance or unlock larger project phases or plans. (500 words maximum)
• Describe how the proposed scope fits into broader regional or jurisdictional plans. • Include trail network, open space system, or regional park planning linkages. • Explain why this phase is timely.

October 6, 2025 CC Special & Regular Mtg Page 289 of 520 Los Angeles County Regional Park and Open Space District APPENDIX 4 46

APPLICATION QUESTIONS AND REQUIRED SUPPORT DOCUMENTS

Optional upload: Community engagement summary, meeting materials

11.Are you partnering with any community-based organizations (CBOs) or stakeholder groups?
 Yes (Names and describe role(s))
 No

12.Who will manage this project? Provide names, roles, and relevant experience of key staff or consultants. (500 words maximum)

13.Describe your project delivery approach. (500 words maximum) • How will you procure, oversee, and track the work?
• Include fiscal and quality control procedures.

14.Describe your past experience delivering similar development projects, especially those funded by public or environmental grant programs. (500 words maximum)

15.Is the project site located in a High or Very High Need Study Area? Provide address and APN, if possible.
 Very High Need
 High Need
 No
 If not, will the project meaningfully benefit High/Very High Need residents? Explain (500 words maximum) including partnerships, visitation patterns, and outreach strategies.

Location (100 words maximum):

16.Check the applicable indicators based on PNA+ Map Viewer for either Regional Recreation Need for Rural Recreation Need:
 1 indicator
 2 indicators
 3+ indicators
Upload required:
• PNA+ screenshot.

October 6, 2025 CC Special & Regular Mtg Page 290 of 520 October 6, 2025 CC Special & Regular Mtg Page 291 of 520

ITEM DESCRIPTION QTY UNIT UNIT COST TOTAL
A
1 Mobilization (10% of Base Bid) 1 LS Allow $ 198,312.07 2 Temporary Construction Chainlink Fence 3,050 LF $ 12.00 $ 36,600.00 $ 234,912.07
B
1 Park Security Lighting 32 EA $ 8,500.00 $ 272,000.00
2 Branch Circuit Conduit and Wiring, Pull Boxes, Distribution, Etc. 1 LS Allow $ 60,000.00 3 Utility Relocation (City Requested Addition) 1 LS Allow $ 100,000.00 4 Drinking Fountain Replacement 4 LS $ 7,500.00 $ 30,000.00 $ 462,000.00
C
1 Erosion Control 1 LS Allow $ 30,000.00
2 Rough Grading (Cut/Fill) 8,000 CY $ 25.00 $ 200,000.00 3 Fine Grading 24,000 SF $ 1.00 $ 24,000.00
4 Storm Drain Construction (Catch Basin, Drain Lines, Clean Outs, etc.) 1 LS $ 150,000.00 $ 150,000.00 5 MWS Units 3 EA $ 50,000.00 $ 150,000.00
6 Resilient Surfacing Drainage 1 LS $ 5,000.00 $ 5,000.00 $ 559,000.00
**DRAFT**
LAS PALMAS PARK - PHASE 1

SAN FERNANDO, CALIFORNIA
Opinion of Probable Construction Cost
Based on 60% Construction Documents dated 11/15/2023
9/10/2025

1. This draft opinion of probable construction cost is based upon the DRAFT 60% Construction Documents dated 11/15/2023 provided to the City by RJM Design Group. This estimate is based upon our understanding of the City's revised and reduced scope of work and design goals as outlined subsequent discussions with City staff. The costs associated with this estimate are considered "order of magnitude" and are not based on final approved designs.

Upon clarification by the City, a refined construction document set with the reduced scope of work shall be prepared with an adjusted cost estimate to reflect accurate quantities.

TOTAL FOR PROJECT START-UP

PROJECT START UP

TOTAL FOR GRADING & DRAINAGE

UTILITIES

TOTAL FOR ELECTRICAL / LIGHTING

GRADING & DRAINAGE
ATTACHMENT "B"
October 6, 2025 CC Special & Regular Mtg Page 292 of 520 **DRAFT**
LAS PALMAS PARK - PHASE 1

SAN FERNANDO, CALIFORNIA
Opinion of Probable Construction Cost
Based on 60% Construction Documents dated 11/15/2023
9/10/2025
D
1 Clear and Grub of Turf and Landscape Areas, Complete 7,170 SF $ 1.00 $ 7,170.00 2 Remove Existing Irrigation Lateral, Heads, Valves, Cap Existing Mainline 7,170 SF $ 1.00 $ 7,170.00 3 Remove, Stump Grind, and Dispose of Existing Trees 5 EA $ 500.00 $ 2,500.00 4 Demolition and Removal of Existing Concrete Walks, Picnic Pads, Sports Court, Etc. 4,771 SF $ 3.00 $ 14,313.00 5 Demolition and Removal of Existing 6" Concrete Mow Curbs 76 LF $ 6.00 $ 456.00 6 Remove and Dispose of Existing Pedestrian and Sports Court Light Poles, Fixtures, and Footings (Cap and Bury Conduit) 2 EA $ 200.00 $ 400.00
7 Remove and Dispose of Existing Trash Receptacles 6 EA $ 300.00 $ 1,800.00 8 Remove and Dispose of Existing Barbeques 5 EA $ 150.00 $ 750.00 9 Demolition and Removal of Existing A/C Paving 376 SF $ 4.00 $ 1,504.00 10 Remove Resilient Rubberized Surfacing, Sand, and Concrete Base at Play Area 3,309 SF $ 4.50 $ 14,890.50 11 Remove Existing Play Equipment and Footings 1 LS $ 5,000.00 $ 5,000.00 12 Remove Existing Shaded Picnic Shelters 3 EA $ 5,000.00 $ 15,000.00 13 Demolition and Removal of Existing Decomposed Granite Pathway 1,313 SF $ 1.50 $ 1,969.50 14 Natural Gray Concrete Paving 3,321 SF $ 16.00 $ 53,136.00 15 Poured in Place Resilient Rubberized Surfacing at Play Area with Concrete Sub Slab 4,675 SF $ 28.00 $ 130,900.00 16 6" Wide Concrete Mowcurb 36 LF $ 60.00 $ 2,160.00
17 Rubber Surface Drain 4 EA $ 2,000.00 $ 8,000.00
18 Play Curb Header for Resilient Surfacing 266 LF $ 80.00 $ 21,280.00 19 Playground Equipment 1 LS Allow $ 225,000.00
20 Playground Equipment Installation 1 LS Allow $ 112,500.00 21 24' Sq. Shaded Picnic Shelter 2 EA $ 50,000.00 $ 100,000.00 22 Picnic Shelter Installation 2 LS Allow $ 50,000.00
23 Shade Shelter Outlets and Lighting 2 EA $ 5,000.00 $ 10,000.00 24 Benches 8 EA $ 2,500.00 $ 20,000.00
25 Picnic Tables 8 EA $ 3,500.00 $ 28,000.00
26 Waste Receptacles 4 EA $ 1,200.00 $ 4,800.00
27 Turf Irrigation (Rotary) 3,113 SF $ 2.50 $ 7,782.50
28 Shrub Irrigation (Bubbler/Rotary) 2,771 SF $ 3.50 $ 9,698.50 29 Tree Irrigation (Bubbler) 16 EA $ 350.00 $ 5,600.00
30 Soil Preparation 5,884 SF $ 1.00 $ 5,884.00
31 24" Box Trees 5 EA $ 650.00 $ 3,250.00
32 36" Box Trees 2 EA $ 1,200.00 $ 2,400.00
33 1 Gal. Container Planting 256 EA $ 8.00 $ 2,048.00
34 5 Gal. Container Planting 86 EA $ 28.00 $ 2,408.00
35 Install Turf Sod 3,113 SF $ 2.00 $ 6,226.00
36 3" Mulch Layer in Landscape Areas 26 CY $ 50.00 $ 1,282.87 37 90 - Day Maintenance 5,884 SF $ 0.45 $ 2,647.80
38 ADA Parking Improvements 1 LS Allow $ 20,000.00
$ 907,926.67

PLAYGROUND AREA

TOTAL FOR PLAYGROUND AREA
October 6, 2025 CC Special & Regular Mtg Page 293 of 520 **DRAFT**
LAS PALMAS PARK - PHASE 1

SAN FERNANDO, CALIFORNIA
Opinion of Probable Construction Cost
Based on 60% Construction Documents dated 11/15/2023
9/10/2025
E
1 Demolition and Removal of Existing Concrete Walks, Picnic Pads, Sports Court, Etc. 12,803 SF $ 3.00 $ 38,409.00 2 Remove and Dispose of Existing Trash Receptacles 2 EA $ 300.00 $ 600.00 3 Demolition and Removal of Existing A/C Paving 3,491 SF $ 4.00 $ 13,964.00 4 Beadblast and Preparation of Existing Basketball Court Surfacing 8,817 SF $ 3.00 $ 26,451.00 5 Remove and Dispose of Existing Basketball Court Posts, Backboards, Hoops, Net, Etc. 1 LS Allow $ 12,000.00 6 Plexipave Court Resurfacing at Basketball Court and Flat Roller Derby Track 10,340 SF $ 2.00 $ 20,680.00 7 Basketball Posts/Backboards/Hoops/Nets 4 EA $ 10,000.00 $ 40,000.00 8 Musco Court Lighting 2 EA $ 30,000.00 $ 60,000.00
9 Benches 4 EA $ 2,500.00 $ 10,000.00
10 Waste Receptacles 4 EA $ 1,200.00 $ 4,800.00
$ 226,904.00
F
1 Demolition and Removal of Existing Concrete Walks, Picnic Pads, Sports Court, Etc. 1,234 SF $ 3.00 $ 3,702.00 2 Demolition and Removal of Existing A/C Paving 477 SF $ 4.00 $ 1,908.00 3 Decomposed Granite Paving 1,673 SF $ 16.00 $ 26,768.00 4 Exercise Equipment 1 LS Allow $ 40,000.00
5 Exercise Equipment Installation 1 LS Allow $ 20,000.00 6 Benches 2 EA $ 2,500.00 $ 5,000.00
$ 97,378.00
G
1 Clear and Grub of Turf and Landscape Areas, Complete 1,234 SF $ 1.00 $ 1,234.00 2 Remove Existing Irrigation Lateral, Heads, Valves, Cap Existing Mainline 1,234 SF $ 1.00 $ 1,234.00 3 30' Sq. Shaded Picnic Shelter 1 EA $ 75,000.00 $ 75,000.00 4 Picnic Shelter Installation 1 LS Allow $ 37,500.00
5 Picnic Tables 6 EA $ 1,800.00 $ 10,800.00
6 Waste Receptacles 4 EA $ 1,200.00 $ 4,800.00
7 Shade Shelter Outlets and Lighting 1 EA $ 5,000.00 $ 5,000.00 8 Natural Gray Concrete Paving 1,234 SF $ 16.00 $ 19,744.00 $ 155,312.00
BASE BID SUBTOTAL = $ 2,643,432.74
10% CONSTRUCTION CONTINGENCY = $ 264,345.00
GRAND TOTAL = $ 2,907,777.74

1. 2.

3. 4.

5. 6.

7. 8.

CR1.

CR2.

CR3.
* All On-Site Utility infrastructure (Sewer,Water, Reclaimed Water, Electrical, Telephone, etc., service and meters are to be provided to the Park Site by Owner. Utility connection and meter fees are not included in the above estimate.

Traffic control estimate needs to be confirmed with City staff following confirmation on access, lane closures, area for staging, delivieries, etc.

Note: The Preceding cost estimate does not include the following:

TOTAL FOR BASKETBALL COURT / FLAT TRACK ROLLER DERBY
Soft costs, i.e., Consultant design fees or City staff project management fees.

BASKETBALL COURT / FLAT TRACK ROLLER DERBY
City Revision Notes:
10% Construction Contingency was reduced from 25% per City request.

Addition of Drinking Fountains (Item B4)as replacement to existing Drinking Fountains in disrepair. Assumed four (4) total.

Utility Relocation (Item B3) line item was added per request of City. Not within design team scope of work.

TOTAL FOR PICNIC SHELTER

PICNIC SHELTER

OBSTACLE COURSE FITNESS AREA

TOTAL FOR OBSTACLE COURSE FITNESS AREA
THE ABOVE ESTIMATE DOES NOT INCLUDE PROFESSIONAL FEES FOR DESIGN SERVICES. RJM HAS PREPARED THIS ESTIMATE OF

PROBABLE CONSTRUCTION COSTS ON THE BASIS OF ITS BEST PROFESSIONAL JUDGMENT AND EXPERIENCE WITH THE CONSTRUCTION INDUSTRY. THE ESTIMATE, HOWEVER, REPRESENTS ASSUMPTIONS AND OPINIONS OF THE CONSTRUCTION MARKET AND CONTRACTORS' METHODS OF DETERMINING ACTUAL CONSTRUCTION COSTS OVER WHICH RJM HAS NO CONTROL. IF THE OWNER WISHES GREATER ASSURANCE AS TO THE CONSTRUCTION COST, HE SHALL EMPLOY AN INDEPENDENT COST ESTIMATOR.

Relocation and or undergrounding of existing utilities/infrastructure.

Utility meters and connection fees.

Environmental monitoring or mitigation.

Hazardous material cleanup and/or removal.

Construction management fees.

Plan check fees, building permit fees, professional inspection, or testing fees.

October 6, 2025 CC Special & Regular Mtg Page 294 of 520

ITEM DESCRIPTION QTY UNIT UNIT COST TOTAL
A
1 Mobilization (10% of Base Bid) 1 LS Allow $ 268,617.30 2 Temporary Construction Chainlink Fence 3,050 LF $ 12.00 $ 36,600.00 $ 305,217.30
B
1 Clear and Grub of Turf and Landscape Areas, Complete 69,454 SF $ 1.00 $ 69,454.00 2 Remove Existing Irrigation Lateral, Heads, Valves, Cap Existing Mainline 69,454 SF $ 1.00 $ 69,454.00 3 Remove, Stump Grind, and Dispose of Existing Trees 5 EA $ 500.00 $ 2,500.00 4 Remove Existing Chain-link Fence, Gates, and Footings 757 LF $ 12.00 $ 9,084.00 5 Remove Existing Temorary Baseball Chain-link Fence 262 LF $ 10.00 $ 2,620.00 6 Demolition and Removal of Existing Concrete Walks, Picnic Pads, Sports Court, Etc. 5,540 SF $ 3.00 $ 16,620.00 7 Remove and Dispose of Existing Pedestrian and Sports Light Poles, Fixtures, and Footings (Cap and Bury Conduit) 5 EA $ 350.00 $ 1,750.00
8 Remove Existing Miscellaneous Site Furnishings (Bleachers, Benches, Etc.) 1 LS Allow $ 15,000.00 9 Remove and Dispose of Existing Trash Receptacles 8 EA $ 300.00 $ 2,400.00 10 Remove and Dispose of Existing Drinking Fountains 1 EA $ 450.00 $ 450.00 11 Remove and Dispose of Existing Scoreboard 1 LS Allow $ 1,500.00 12 Demolition and Removal of Existing 6" Concrete Mow Curbs 76 LF $ 6.00 $ 456.00 13 Demolition and Removal of Existing A/C Paving 1,123 SF $ 4.00 $ 4,492.00 12 Lower Existing Manhole 1 LS Allow $ 3,000.00
13 Musco Sports Field Lighting 6 EA $ 50,000.00 $ 300,000.00 14 Branch Circuit Conduit and Wiring, Pull Boxes, Distribution, Etc. 1 LS Allow $ 10,000.00 15 Decomposed Granite Paving 3,904 SF $ 8.00 $ 31,232.00 16 6" Wide Concrete Mowcurb 563 LF $ 60.00 $ 33,780.00
17 Install 35' Ht. Steel Backstop Post 2 EA $ 4,250.00 $ 8,500.00 18 Install 32' Ht. Steel Backstop Post 16 EA $ 3,750.00 $ 60,000.00 19 Install 16' Ht. Steel Backstop Post 2 EA $ 3,250.00 $ 6,500.00 20 Install 8' Ht. Ball Field Chain-link Fencing (Backstop, Dugouts, Bullpens, and Soft-toss) 783 LF $ 150.00 $ 117,450.00 21 Install 27' Ht. Safety Netting Atop Chain-link Fencing 2,160 SF $ 2.50 $ 5,400.00 22 Install 24' Ht. Safety Netting Atop Chain-link Fencing 8,112 SF $ 2.50 $ 20,280.00 23 Install 8' Ht. Safety Netting Atop Chain-link Fencing 448 SF $ 2.50 $ 1,120.00 24 8' Ht. Chain-link Outfield Fencing 554 LF $ 165.00 $ 91,410.00 25 Install 24' Ht. Safety Netting Atop Outfield Chain-link Fencing 13,296 SF $ 2.50 $ 33,240.00 26 5'x8' Ht. Pedestrian Gate within 8' Ht. Baseball Fencing 6 EA $ 2,500.00 $ 15,000.00 27 Natural Gray Concrete Paving 5,988 SF $ 16.00 $ 95,808.00 28 Shade Structures Over Bleachers 2 EA $ 12,000.00 $ 24,000.00 29 Scorers Tables and Benches 1 EA $ 1,500.00 $ 1,500.00 30 Bleachers 2 EA $ 12,000.00 $ 24,000.00
31 Dugout Benches 2 EA $ 2,500.00 $ 5,000.00
32 Baseball Field Infield Mix 14,438 SF $ 3.00 $ 43,314.00 33 Turf Irrigation (Rotary) 69,585 SF $ 2.50 $ 173,962.50 34 Tree Irrigation (Bubbler) 12 EA $ 350.00 $ 4,200.00
35 Soil Preparation 69,585 SF $ 1.00 $ 69,585.00
36 Install Turf Sod 69,585 SF $ 2.00 $ 139,170.00
37 90 - Day Maintenance 69,585 SF $ 0.45 $ 31,313.25
$ 1,544,544.75

1. This draft opinion of probable construction cost is based upon the DRAFT 60% Construction Deocuments dated 11/15/2023 provided to the City by RJM Design Group. This estimate is based upon our understanding of the project's scope of work and design goals as outlined in the project's RFP and subsequent discussions with City staff. The costs associated with this estimate are considered "order of magnitude" and are not based on final approved designs. Upon clarification by the City, a refined concept plan shall be prepared and updated cost estimate.

PROJECT START UP

TOTAL FOR PROJECT START-UP
BASEBALL FIELD #1
TOTAL FOR BASEBALL FIELD #1
**DRAFT**
LAS PALMAS PARK - PHASE 2

SAN FERNANDO, CALIFORNIA
Opinion of Probable Construction Cost
Based on 60% Construction Documents dated 11/15/2023
9/9/2025
ATTACHMENT "C"
October 6, 2025 CC Special & Regular Mtg Page 295 of 520 **DRAFT**
LAS PALMAS PARK - PHASE 2

SAN FERNANDO, CALIFORNIA
Opinion of Probable Construction Cost
Based on 60% Construction Documents dated 11/15/2023
9/9/2025
C
1 Clear and Grub of Turf and Landscape Areas, Complete 68,853 SF $ 1.00 $ 68,853.00 2 Remove Existing Irrigation Lateral, Heads, Valves, Cap Existing Mainline 68,853 SF $ 1.00 $ 68,853.00 3 Remove, Stump Grind, and Dispose of Existing Trees 6 EA $ 500.00 $ 3,000.00 4 Remove Existing Chain-link Fence, Gates, and Footings 285 LF $ 12.00 $ 3,420.00 5 Remove Existing Temorary Baseball Chain-link Fence 296 LF $ 10.00 $ 2,960.00 6 Demolition and Removal of Existing Concrete Walks, Picnic Pads, Sports Court, Etc. 7,500 SF $ 3.00 $ 22,500.00 7 Demolition and Removal of Existing 6" Concrete Mow Curbs 36 LF $ 6.00 $ 216.00 8 Remove and Dispose of Existing Pedestrian and Sports Court Light Poles, Fixtures, and Footings (Cap and Bury Conduit) 3 EA $ 200.00 $ 600.00
9 Remove Existing Miscellaneous Site Furnishings (Bleachers, Benches, Etc.) 1 LS Allow $ 10,000.00 10 Remove and Dispose of Existing Trash Receptacles 4 EA $ 300.00 $ 1,200.00 11 Remove and Dispose of Existing Barbeques 2 EA $ 150.00 $ 300.00 12 Remove and Dispose of Existing Drinking Fountains 1 EA $ 450.00 $ 450.00 13 Musco Sports Field Lighting 4 EA $ 50,000.00 $ 200,000.00 14 Branch Circuit Conduit and Wiring, Pull Boxes, Distribution, Etc. 1 LS Allow $ 10,000.00 15 Install 35' Ht. Steel Backstop Post 2 EA $ 4,250.00 $ 8,500.00 16 Install 32' Ht. Steel Backstop Post 14 EA $ 3,750.00 $ 52,500.00 17 Install 16' Ht. Steel Backstop Post 2 EA $ 3,250.00 $ 6,500.00 18 Install 8' Ht. Ball Field Chain-link Fencing (Backstop, Dugouts, and Bullpens) 662 LF $ 150.00 $ 99,300.00 19 Install 27' Ht. Safety Netting Atop Chain-link Fencing 2,160 SF $ 2.50 $ 5,400.00 20 Install 24' Ht. Safety Netting Atop Chain-link Fencing 7,320 SF $ 2.50 $ 18,300.00 21 Install 8' Ht. Safety Netting Atop Chain-link Fencing 256 SF $ 2.50 $ 640.00 22 5'x8' Ht. Pedestrian Gate within 8' Ht. Baseball Fencing 4 EA $ 2,500.00 $ 10,000.00 23 Natural Gray Concrete Paving 3,921 SF $ 16.00 $ 62,736.00 24 Baseball Field Infield Mix 14,162 SF $ 3.00 $ 42,486.00 25 Shade Structures Over Bleachers 2 EA $ 12,000.00 $ 24,000.00 26 Scorers Tables and Benches 1 EA $ 1,500.00 $ 1,500.00 27 Bleachers 2 EA $ 12,000.00 $ 24,000.00
28 Dugout Benches 2 EA $ 2,500.00 $ 5,000.00
29 Turf Irrigation (Rotary) 51,987 SF $ 2.50 $ 129,967.50 30 Shrub Irrigation (Bubbler/Rotary) 188 SF $ 3.50 $ 658.00 31 Tree Irrigation (Bubbler) 27 EA $ 350.00 $ 9,450.00
32 Point of Connection & Controller Upgrade 1 LS Allow $ 5,000.00 33 Soil Preparation 52,175 SF $ 1.00 $ 52,175.00
34 24" Box Trees 10 EA $ 650.00 $ 6,500.00
35 36" Box Trees 3 EA $ 1,200.00 $ 3,600.00
36 1 Gal. Container Planting 171 EA $ 8.00 $ 1,368.00
37 5 Gal. Container Planting 127 EA $ 28.00 $ 3,556.00
38 Install Turf Sod 51,987 SF $ 2.00 $ 103,974.00
39 3" Mulch Layer in Landscape Areas 2 CY $ 50.00 $ 87.04 40 90 - Day Maintenance 52,175 SF $ 0.45 $ 23,478.75
$ 1,093,028.29
D
1 Install Traditional Hooded Backstop 1 EA $ 12,000.00 $ 12,000.00 $ 12,000.00
BASE BID SUBTOTAL = $ 2,954,790.34
25% CONSTRUCTION CONTINGENCY = $ 738,700.00
GRAND TOTAL = $ 3,693,490.34
TOTAL FOR BASEBALL FIELD #2

PRACTICE BACKSTOP

TOTAL FOR PRACTICE BACKSTOP
BASEBALL FIELD #2
October 6, 2025 CC Special & Regular Mtg Page 296 of 520 **DRAFT**
LAS PALMAS PARK - PHASE 2

SAN FERNANDO, CALIFORNIA
Opinion of Probable Construction Cost
Based on 60% Construction Documents dated 11/15/2023
9/9/2025

1. 2.

3. 4.

5. 6.

7. 8.

Soft costs, i.e., Consultant design fees or City staff project management fees.

Traffic control estimate needs to be confirmed with City staff following confirmation on access, lane closures, area for staging, delivieries, etc. * All On-Site Utility infrastructure (Sewer,Water, Reclaimed Water, Electrical, Telephone, etc., service and meters are to be provided to the Park Site by Owner. Utility connection and meter fees are not included in the above estimate.

THE ABOVE ESTIMATE DOES NOT INCLUDE PROFESSIONAL FEES FOR DESIGN SERVICES. RJM HAS PREPARED THIS ESTIMATE OF

Relocation and or undergrounding of existing utilities/infrastructure.

Utility meters and connection fees.

Environmental monitoring or mitigation.

Hazardous material cleanup and/or removal.

Construction management fees.

Plan check fees, building permit fees, professional inspection, or testing fees.

Note: The Preceding cost estimate does not include the following:

October 6, 2025 CC Special & Regular Mtg Page 297 of 520 SEPTEMBER 11, 2025

CITY OF SAN FERNANDO

LAS PALMAS PARK REVITALIZATION PROJECT
October 6, 2025 CC Special & Regular Mtg Page 298 of 520

PROJECT HISTORY
RJM Design Group, in partnership
with non-profit organization
Pacoima Beautiful conducted a
series of community outreach events
and activities to solicit feedback for
the park renovations.
• In-Person Workshops
• March 29, 2023
• April 27, 2023
• May 31, 2023
• Community Canvassing
• Project Informational Website
with Community Survey
After presenting the community
workshop results, City Council
authorized the Design Team to
proceed with the preparation of
Preliminary Conceptual Design
Plans.

October 6, 2025 CC Special & Regular Mtg Page 299 of 520

PRELIMINARY DESIGN
October 6, 2025 CC Special & Regular Mtg Page 300 of 520 PROPOSED PHASE 1 RENOVATION PLAN
October 6, 2025 CC Special & Regular Mtg Page 301 of 520 PROPOSED PHASE 1 AMENITIES – EXAMPLE IMAGES

SOFT TOSS

BATTING CAGE
SHADE

SHELTERS

FULL COURT

BASKETBALL
with FLAT
TRACK

ROLLER DERBY

OBSTACLE
COURSE

FITNESS
AREA

PATRIOTIC
THEMED
PLAY

EQUIPMENT
October 6, 2025 CC Special & Regular Mtg Page 302 of 520 PROPOSED PHASE 2 RENOVATION PLAN
October 6, 2025 CC Special & Regular Mtg Page 303 of 520 PROPOSED PHASE 2 AMENITIES – EXAMPLE IMAGES

SOFT TOSS

BATTING CAGE
SHADED

BLEACHER

SEATING
WARMUP

BULLPEN

SCOREBOARD
& BALL

CONTAINMENT

NETTING
October 6, 2025 CC Special & Regular Mtg Page 304 of 520 October 6, 2025 CC Special & Regular Mtg Page 305 of 520 This Page
Intentionally
Left Blank
October 6, 2025 CC Special & Regular Mtg Page 306 of 520

AGENDA REPORT
PUBLIC WORKS DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1222 WWW.SFCITY.ORG REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ Interim City Manager To: Mayor Mary Mendoza and Councilmembers
From: Kanika Kith, Interim, City Manager
By: Wendell Johnson, Director of Public Works
Victor Meza, Water Operations Manager

Date: October 6th, 2025
Subject: A Proposition 218 Majority Protest Public Hearing to Consider and Adopt a Proposed Resolution Approving the Schedule of Increased/Adjusted Water and Sewer Service Fees and Charges Subject to the Outcome of a Mandatory Parcel Owner Protest Vote
RECOMMENDATION:

It is recommended that the City Council:
a. Open the Proposition 218 Majority Protest Public Hearing. b. Receive a presentation, including discussion regarding responses to timely submitted objections and pose questions to staff.
c. Open the Public Comment Portion of the Majority Protest Public Hearing and Receive Public Comment, including the submission of additional written protests. d. Close the Public Comment Portion of the Public Hearing and make a final call for the submission of written protests.
e. Pose closing questions to staff, if any, and then recess the proceedings so that the City Clerk may tabulate the total number of written protests received. f. Reconvene proceedings to announce results of majority protest vote and if protests were submitted for 50% or less of the total number of affected real property parcels and consider adopting Resolution No. 8412 (Attachment “B”) approving the new schedule of increased/adjusted water and sewer service fees and charges identified in (Attachment “A”) as detailed in the 2025 Water and Sewer Report (Exhibit “A” of Attachment “B”).

October 6, 2025 CC Special & Regular Mtg Page 307 of 520 A Proposition 218 Majority Protest Public Hearing to Consider and Adopt a Proposed Resolution Approving the Schedule of Increased/Adjusted Water and Sewer Service Fees and Charges Subject to the Outcome of a Mandatory Parcel Owner Protest Vote
2 of 6
BACKGROUND:

1. The City of San Fernando (“City”) owns and operates its own system for the conveyance and distribution of water for consumption by residents and businesses. The City also owns and operates its own City-wide sewer system for the transport and disposal of wastewater.

2. On January 21, 2025, the City Council approved a Professional Service Agreement with Robert D. Niehaus, Inc. (Contract No. 2336) to prepare a water and sewer utility rate study in accordance with Prop 218.

3. On June 16, 2025, the City Council received a presentation regarding (i) the rate study prepared by Robert D. Niehaus, Inc entitled “City of San Fernando 2025 Water and Sewer Rate Study” (the “2025 Water and Sewer Rate Study”) (Exhibit “A” of Attachment “A”); (ii) the initial financial plan recommendations; and (iii) rate impacts. The City Council directed staff to move forward with finalizing the cost of service and rate recommendations based on the proposed financial plan.

4. On August 4, 2025, the City Council approved Resolution No. 8401 which initiated the Prop 218 process by setting an October 6, 2025 as the “majority protest” public hearing date for the City Council to consider the adoption of a new schedule of increased and adjusted water and sewer service fees and charges, subject to the outcome of the “majority protest” vote described, above.

5. On August 19, 2025, the 45-day public hearing notices were prepared in English and Spanish (Attachment “C”) asrequired under Prop 218 and were mailed to 11,254 customers and parcel owners representing 5,859 affected parcels. Notices included community engagement outreach for an informational workshop on September 17, 2025 to address questions and explain the rate study process, which was also advertised on the City’s website:
www.sfcity.org/watersewerstudy.

6. On September 17, 2025, a workshop was hosted at Las Palmas Park to present the results of the rate study, explain the priorities identified, and answer questions from attendees. A total of five community members and City staff participated in the meeting.

ANALYSIS:

Rate studies are conducted to keep the City’s water and sewer systems financially stable, safe, and reliable. They examine the costs of operations, maintenance, infrastructure replacement, regulatory compliance, and capital projects. By updating the rates regularly, the City can responsibly plan for future needs, maintain service quality, and ensure that customers are charged fairly and transparently.

October 6, 2025 CC Special & Regular Mtg Page 308 of 520 A Proposition 218 Majority Protest Public Hearing to Consider and Adopt a Proposed Resolution Approving the Schedule of Increased/Adjusted Water and Sewer Service Fees and Charges Subject to the Outcome of a Mandatory Parcel Owner Protest Vote
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Water and sewer rate fees are viewed as property-related fees for a utility service and are subject to specific requirements of the California Constitution Article XIII D 6(a) commonly referred to as Proposition (Prop) 218. These requirements under Prop 218 includes:
• The fees must only cover expenses to provide services to the customer assessed. • Any proposed fee increase must go through a protest process, where all affected property owners are notified and given the opportunity to submit written protests at a public hearing. If a majority of property owners submit valid protests, the proposed increase cannot be implemented.
• A multi-year schedule of fee increases is allowed for up to five years.

The City’s current rate schedule was adopted on November 26, 2019 and covered Fiscal Years 2020-2021 through 2024-2025, which is now outdated. To address this, the City engaged Robert D. Niehaus, Inc. (RDN) to prepare the 2025 Water and Sewer Rate Study (Attachment “B”), which analyzes revenues, expenses, and capital needs over the next five years. The study concludes that adjustments are necessary to maintain reliable service, replace aging infrastructure, and preserve adequate reserves.

Findings
Findings show that water system costs are rising about 4% annually and sewer system costs about

3.6%. To cover these increases, fund approximately $1 million per year in water capital projects and $600,000 per year in sewer projects, and maintain healthy reserves, the study recommends revenue increases of 5% annually for water and 3% annually for sewer.

The proposed rate structure (Attachment A) is based on industry-standard cost-of-service principles and California law, ensuring charges are equitably distributed among customers. It also includes a pass-through charge if the City must purchase higher-cost imported water from the Metropolitan Water District, protecting utility reserves from unexpected costs.

Proposition 218 Requirements
Because water and sewer charges are considered property-related fees under Proposition 218, the City is required to follow strict legal standards. Rates can only cover the actual cost of providing service, must be proportional to customer use, cannot fund unrelated government programs, and may only be charged where service is available.

The City’s water and sewer service fees and charges are considered property-related fees/charges within the meaning of Prop 218. Under Prop 218 property related fees and charges may not:
a. exceed the funds required to provide the property related service; b. be used for any purpose other than that for which the fee or charge was imposed; October 6, 2025 CC Special & Regular Mtg Page 309 of 520 A Proposition 218 Majority Protest Public Hearing to Consider and Adopt a Proposed Resolution Approving the Schedule of Increased/Adjusted Water and Sewer Service Fees and Charges Subject to the Outcome of a Mandatory Parcel Owner Protest Vote
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c. exceed the proportional cost of the service attributable to an affected real property parcel;
d. be imposed for water or sewer service unless that service is actually used by, or immediately available to, the owner of the property in question; and e. be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.

Proposition 218 also requires that the City notify property owners in advance and allow them the opportunity to protest any proposed rate increases before they are adopted.

Proposition 218 Protest Process
As mentioned above, before the City Council can adopt and implement the new fee schedule, however, it must initiate the “majority protest” process prescribed by Prop 218. This process requires a public hearing where the outcome is determined by writing protests submitted by the property owners. A “majority protest” vote is different from traditional votes in which a matter is approved if it receives a majority of the votes cast by members of the electorate. First, a “majority protest” vote is limited to the owners1 of real property parcels that are affected by a proposed rate increase. Second, the outcome of the vote is decided by whether written protests are submitted on behalf of a majority of the total number of parcels affected by the fee increase. If written protests are submitted on behalf of more than 50% of the total number of affected parcels, the City Council will be prohibited from adopting the fee increase. For example, if 100 parcels are affected, written protests would need to be submitted by at least 51 parcels to block the increase; anything less would allow the Council to proceed with the increase.

Public Hearing Notice
In advance of the “majority protest” public hearing, Prop 218 requires that the City provide all affected real property parcel owners with written notice that:
(i) informs the parcel owners of City’s intent to increase a property-related fee or charge and the amounts proposed
(ii) explains the reasons and methodology for the increases, (iii) identifies the proposed date, time and location of the majority-property hearing where the City Council will consider approval of the increase, and (iv) explains the majority-protest process and how parcel owners may submit written protests in opposition the proposed increases.

Under Prop 218 this notice must be issued no less than 45 days prior to the proposed date of the majority-protest hearing. To meet this requirement staff mailed out the required notices on 1 In instances where the fee or charge is paid by a real property tenant, as is often the case with water service, tenants are allowed to submit protest votes on behalf of the parcel but as states elsewhere in this staff report only one protest may be counted for each affected parcel.

October 6, 2025 CC Special & Regular Mtg Page 310 of 520 A Proposition 218 Majority Protest Public Hearing to Consider and Adopt a Proposed Resolution Approving the Schedule of Increased/Adjusted Water and Sewer Service Fees and Charges Subject to the Outcome of a Mandatory Parcel Owner Protest Vote
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August 19, 2025. The deadline to submit protests is by the close of the public hearing. To date, 468 protests have been received.

In addition to the standard protest process under Article XIIID, the City is also following the written objection process allowed under AB 2257 (Government Code Section 53759.1(c)). This means that, besides written protests, parcel owners may also submit written objections challenging the City’s rate-setting methods or compliance with legal procedures. Anyone who wants to later file a lawsuit must first submit a written objection through this process, otherwise they will be barred from doing so. The City is required to respond to each written objection, and both the objections and responses must be included in the record reviewed by the City Council.

The deadline for submitting written objections was Friday, September 26, 2025 by 5:00 p.m. As of the date of this staff report the City has not received any written objections.

Community Engagement Workshop
To enhance transparency and encourage community involvement, a public engagement meeting was held on Wednesday, September 17, 2025, at 6:00 p.m. in the Las Palmas Park Banquet Room to present the study results. The workshop shared information to give the community a clear understanding of the priorities identified and the reasons behind them. A total of five community members and City staff attended.

Low Income Rate Assistance Program.

On November 26, 2019, the City Council’s adoption of the Water and Sewer Rate Plans included a Low-Income Rate Assistance Program. To comply with Proposition 218’s cost of service requirements, water and sewer rate revenues from one group of customers cannot be used to subsidize the rates of another group. Instead, the City utilizes non-rate revenues associated with interest earnings and delinquent penalties to fund the low-income rate assistance program.

To eliminate the administrative burden of developing a separate process, the City provides assistance to low-income residents who meet the criteria of other local assistance programs such as Southern California Edison’s CARE and FERA programs. Assistance is applied only to fixed service fees, not consumption charges. The current maximum discount is $18 per billing period ($11 for water and $7 for sewer), which equals about 13% of fixed service fees.

The program is reviewed annually to ensure sufficient non-rate revenues are available and can be adjusted in line with rate increases.

Timeline and Next Steps.

Under Proposition 218, new water and sewer service fees and charges can only be adopted after a public hearing and protest process. If a majority of property owners (50% plus one) submit written protests, the City Council cannot adopt the new fee schedule. With 5,859 affected parcels, this means 2,930 valid protests would be required. To date, 468 protests have been received.

October 6, 2025 CC Special & Regular Mtg Page 311 of 520 A Proposition 218 Majority Protest Public Hearing to Consider and Adopt a Proposed Resolution Approving the Schedule of Increased/Adjusted Water and Sewer Service Fees and Charges Subject to the Outcome of a Mandatory Parcel Owner Protest Vote
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The process to date and proposed next steps are outlined below:

Item Date Action
City Council Presentation June 16, 2025 Proposed rates presented.

Set Public Hearing to
receive written protests August 4, 2025 Council approved Oct. 6 hearing and authorized Prop 218 process.

Prop 218 Notice Mailed August 19, 2025 Notice sent to property owners at least 45 days before hearing.

Community Workshop September 17, 2025 Public Engagement at Las Palmas Park Prop 218 Public Hearing October 6, 2025
Receive comments/protests. At the
conclusion of the public hearing, count
valid protests and approve proposed rates
New Rates Take Effect January 1, 2026 Approved rates implemented.

If adopted, the City will notify customers through utility bill inserts and a separate mailed notice providing details on the new rates and effective date.

BUDGET IMPACT:

The water and sewer utilities are operated as Enterprise Funds. As a result, both utilities must be self-sustaining and funded entirely from rates and fee for service charges that are separate and apart from the City’s General Fund. The financial plan as completed through the Water and Sewer Rate Study proposes revenue adjustments of 5% annually for the water utility and 3% annually for the sewer utility, which will provide adequate funding to maintain the City’s water and sewer service and provide revenues proportionate to the cost of providing these services.

The proposed annual increases account for annual inflation and projected cost of service increases. Revenues will increase annually proportionate to the needs to fully fund both operating and capital programs.

CONCLUSION:

It is recommended that the City Council, conduct a public hearing, pending public majority protest testimony, consider adopting Resolution No. 8412 which approves the new schedule of increased/adjusted water and sewer service fees and charge as prescribed in the 2025 Water and Sewer Rate Study and which makes relevant findings in support of the same, all subject to the outcome of the “majority protest” vote count.

ATTACHMENTS:

A. Proposed Water and Sewer Rate Increase Adjustments
B. Resolution No. 8412 with
Exhibit “A” – 2025 Water and Sewer Rate Report
C. Public Hearing Notice
October 6, 2025 CC Special & Regular Mtg Page 312 of 520 ATTACHMENT “A”
Proposed Water and Sewer Rates – 5 Year Plan
Water – Proposed Fixed Charges
Meter Size FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
3/4" $56.63 $59.46 $62.44 $65.56 $68.84
1" $112.55 $118.18 $124.09 $130.29 $136.81
1 1/2" $205.75 $216.04 $226.84 $238.19 $250.10
2" $317.60 $333.48 $350.15 $367.66 $386.04
3" $671.76 $705.35 $740.62 $777.65 $816.53
4" $1,193.69 $1,253.38 $1,316.04 $1,381.85 $1,450.94
6" $3,001.80 $3,151.89 $3,309.49 $3,474.96 $3,648.71
8" $5,238.64 $5,500.57 $5,775.60 $6,064.38 $6,367.60
10" $7,848.29 $8,240.70 $8,652.74 $9,085.37 $9,539.64
Water – Proposed Variable Charges
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
All Use $3.28 $3.45 $3.62 $3.80 $3.99
MWD Water $4.98 $5.23 $5.49 $5.76 $6.05
Sewer – Fixed Charges
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Residential (Flat Rate) $82.43 $84.91 $87.45 $90.08 $92.78 Residential (Multi Unit) $68.39 $70.45 $72.56 $74.74 $76.98 Commercial Group II $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group III $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Industrial $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Group IV $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group V $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Schools $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Higher Education $34.99 $36.04 $37.12 $38.23 $39.38 Commercial City Property $34.99 $36.04 $37.12 $38.23 $39.38 Sewer – Variable Charges
Customer Class FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Commercial Group II $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Group III $5.00 $5.15 $5.31 $5.47 $5.63
Commercial Industrial $2.98 $3.07 $3.16 $3.26 $3.36
Commercial Group IV $7.08 $7.29 $7.51 $7.73 $7.97
Commercial Group V $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Schools $2.34 $2.41 $2.48 $2.55 $2.63
Commercial Higher Education $2.34 $2.41 $2.48 $2.55 $2.63 Commercial City Property $2.93 $3.02 $3.11 $3.20 $3.30
Additional details are provided in the City of San Fernando 2025 Water and Sewer Rate Study Report October 6, 2025 CC Special & Regular Mtg Page 313 of 520 ATTACHMENT “B”
RESOLUTION NO. 8412
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO: (1) CONFIRMING THE CONDUCT OF AN OCTOBER 6, 2025 MAJORITY PROTEST PUBLIC HEAIRNG PER ARTICLE XIIID, SECTION 6 OF THE CALIFORNIA CONSTITUTION AND GOVERNMENT CODE SECTION 53755 ET SEQ. TO RECEIVE

WRITTEN PROTESTS AND OBJECTIONS BY AFFECTED REAL PROPERTY PARCEL OWNERS TO PROPOSED INCREASES TO THE CITY’S SCHEDULE OF WATER AND

SEWER SERVICE FEES AND CHARGES CODIFIED UNDER ARTICLE II (SEWER) AND ARTICLE III (WATER) OF CHAPTER 94 (UTILITIES) OF THE SAN FERNANDO MUNICIPAL CODE; (2) RE-AFFIRMING THE MASTER LIST OF AFFECTED REAL PROPERTY PARCELS; (3) RE-AFFIRMING ITS APPROVAL OF A WATER AND

SEWER SERVICE CHARGE RATE STUDY JUSTIFYING THE RECOMMENDED WATER AND SEWER SERVICE CHARGE INCREASES; (4) CONFIRMING THE RESULTS OF THE MAJORITY PROTEST PROCEEDINGS; AND (5) ADOPTING THE SCHEDULE OF

INCREASED WATER AND SEWER SERVICE FEES AND CHARGES RECOMMENDED

IN THE FEE STUDY
WHEREAS the City operates its own water system for the conveyance of water to certain private and public water users located within the City; and WHEREAS, pursuant to Article XI, Section 9 of the California Constitution, a municipal corporation may establish, purchase and operate public works to furnish its inhabitants with water; and
WHEREAS, this power is, for the most part, self-executing and does not require enabling State legislation (See. Glenbrook Dev. Co. v. City of Brea (1967) 253 Cal. App. 2d 267); and WHEREAS, the power to fix rates to be charged to water customers is incident to the power to establish and operate public utility systems conferred under Sections 7 and 9 of Article XI of the California Constitution (See also. Durant v. City of Beverly Hills 39 Cal. App. 2d (1940) 133, 137); and
WHEREAS, cities are not subject to outside review of their rates by the California Public Utilities Commission (“CPUC”) because municipal corporations are outside the jurisdiction of the CPUC (See. County of Inyo v. PUC (1980) 26 C3d 154); and WHEREAS, the City also operate a City-wide sewerage system for the transport of wastewater; and
WHEREAS, the City, pursuant to Health & Safety Code Section 5470 et seq., also has the power to prescribe, revise and collect fees or other charges for the use of its sewer system; and WHEREAS, fees and charges for water and sewer service are considered propertyrelated fees/charges within the meaning of Article XIIID of the California Constitution (“Article XIIID”) and are therefore subject to the approval requirements set forth under Article XIIID, October 6, 2025 CC Special & Regular Mtg Page 314 of 520 RES. NO. 8412
2 Section 6 of the California Constitution and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 et seq.); and
WHEREAS, Article XIIID requires that the City provide all affected real property parcel owners with written notice that (i) informs the parcel owners of City’s intent to increase a property-related fee or charge and the amounts proposed, (ii) explains the reasons and methodology for the increases,(iii) identifies the proposed date, time and location of the majority-property hearing where the City Council will consider approval of the increase, and (iv) explains the majority-protest process and how parcel owners may submit written protests in opposition the proposed increases; and
WHEREAS, Article XIIID further requires that such notice be issued no less than 45 days prior to the proposed date of the majority-protest hearing; and WHEREAS, engaged Robert D. Niehaus, Inc. (“RND”) to prepare that certain report entitled “City of San Fernando 2025 Water and Sewer Rate Study” (the “2025 Rate Study”) which proposes and justifies an amended schedule of increased water and sewer service fees and charges; and
WHEREAS, on August 19, 2025, notice of the October 6, 2025 majority protest hearing was mailed to those affected real property parcel owners identified in that certain list of real property parcels compiled by Harris & Associates (hereinafter, the “Parcel List”) which identifies the total number of real property parcels within the City that receive sewer services from the City and would be affected by the rate increases discussed herein; and WHEREAS The parcel numbers and corresponding property owner addresses are based on parcel data compiled from the latest equalized tax assessment roll. Commencing July 2, 2025, a true and correct copy of the Parcel List was made available for inspection by members of the public on the City’s internet website at: https://ci.san-fernando.ca.us/watersewerstudy/ and in hardcopy form at City Clerks Office; and
WHEREAS, the City Clerk, following the close of the majority protest public hearing, tabulated all written protests submitted in opposition to the proposed increases to determine whether or not the number of real property parcels for which a protest was submitted exceeds 50% of the total number of real property parcels affected by the contemplated increases; and WHEREAS, the City Council has found that the total number of written protests required to defeat any proposed increase in water charges shall be a sum equal to 50% plus 1 of 2930, the total number of affected real property parcels or 5859 protests total; and WHEREAS, the total number of submitted protests as in fact____________; and October 6, 2025 CC Special & Regular Mtg Page 315 of 520 RES. NO. 8412
3 WHEREAS, the proposed increases to the City’s schedule of water and sewer service charges may be implemented because the total number of real property parcels for which a protest was submitted was less than 50% of the total number of real property parcels affected by the contemplated increases.

WHEREAS, in addition to the standard protest procedures called for under Article XIIID, the City also availed itself of the written objection procedures of AB 2257 codified under Government Code Section 53759.1(c) wherein parcel owners, in addition to written protests, may also submit written objections challenging the City’s rate setting methodology and/or compliance with legally applicable procedures.

NOW, THEREFORE, the City Council of the City of San Fernando does hereby resolve and find as follows:

SECTION 1. City Council finds that the foregoing Recitals are true and correct.

SECTION 2. The City Council re-affirms its approval of the 2025 Water and Sewer Rate Study (Exhibit “A”). Based on the 2025 Rate Study, all written documentation entered into the record of the majority protest proceedings (including the submitted protests and objections), the testimony of City staff and consultants and the oral testimony of interested members of the public, the City Council and finds, determines and resolves, in accordance with Section 6(b) of Article XIIID, that: (i) revenues derived from the fee or charge referenced in the 2025 Rate Study do not exceed the funds required to provide the property related service; (ii) revenues derived from the fees or charges will not be used for any purpose other than that for which the fee or charge was imposed; (iii) the amount of the fees or charges imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel; (iv) no fee or charge will be imposed for water or sewer service unless that service is actually used by, or immediately available to, the owner of the property in question; and (v) no fee or charge will be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.

SECTION 3. The City Council also re-affirms its approval that certain list of real property parcels which has been compiled by Los Angeles County Assessors 2024/2025 Tax Roll provided by Hdl Coren & Cone (the “Parcel List”) and which represent the total number of real property parcels within the City that receive water and sewer services from the City and would be affected by the rate increases discussed herein. The parcel numbers and corresponding property owner addresses are based on parcel data compiled from the latest equalized tax assessment roll. (A true and correct copy of the Parcel List has been maintained by the City Clerk as a record of the City and was available for inspection). The City Council also finds that City staff also delivered notice of the majority protest proceedings to water and sewer service customers based on the City’s own existing customer billing list with the understanding that a water and sewer customer may not necessarily be the owner of an affected parcel.

October 6, 2025 CC Special & Regular Mtg Page 316 of 520 RES. NO. 8412
4 SECTION 4. The City Council further confirms that the total number of written protests required to defeat any proposed increase in water charges shall be a sum equal to 50% plus 1 of 5859, the total number of affected real property parcels or 2930 protests total. Affected real property parcel owners were issued written notice of the October 6, 2025 majority protest public hearing in compliance with the requirements of Article XIIID, Section 6 of the California Constitution and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 et seq.). In keeping with Article XIIID, Section 6, City staff mailed written notice of the majority protest public hearing to all persons identified in the Parcel List on August 19, 2025, a date more than 45 days prior to the date of the majority protest public hearing. The specific procedures for the submission and tabulation of protests are set forth in City Council Resolution No. 8401 approved August 4, 2025.

SECTION 5. At the conclusion of the October 6, 2025 majority protest public hearing, the City Clerk tabulated the total number of written protests submitted on behalf of affected real property parcels in the City opposing the adoption and implementation of an updated schedule of increased sewer service fees and charges and determined that number to be _________ protests total, a sum representing less than 50% of the total number affected real property parcels. Accordingly, the City Council may adopt the schedule of increase water and sewer service fees and charges recommended in the 2025 Rate Study. By approval of this resolution, the City Council does hereby approve, adopt and order the implementation of the schedule of increased and adjusted water and sewer service fees and charges set forth under the heading(s) Rate Recommendations and Proposed Rates beginning at page 3 of the 2025 Rate Study.(A true and correct copy of the 2025 Water and Sewer Rate Study is attached and incorporated into this Resolution as Exhibit “A”.

SECTION 6. By approval of this resolution, the City Council does hereby repeal prior City Council Resolution Nos. 7963 and 7964 both of which are dated November 26, 2019 and declares that they shall be of no further force or effect upon the date the schedule of water and sewer service fees and charges approved under this resolution take effect.

SECTION 7. The City Council further acknowledges and finds that the in addition to written protests, the City also received zero (0) written objections submitted pursuant to Government Code Section 53759.1(c) as enacted under AB 2257 which took effect January 1, 2025. Procedures for submission and review of written objections were set forth under Resolution No. 8401 dated August 4, 2025. True and correct copies of these written objections, along with the City’s written responses to the objections were entered into the record of the majority protest proceedings and were considered by the City Council before approving this uncodified ordinance and the schedule of increase sewer service fees and charges approved by way of the same. In reviewing the written protests and the corresponding City responses to the same, the City Council determines that (i) the written objections and the City’s responses do not warrant clarification to the proposed schedule of increased sewer service fees and charges; (ii) reduction of the proposed fees and charges is not necessary; (iii) no further review is necessary; and (iv) the City Council was justified in proceeding to the tabulation of written protests.

October 6, 2025 CC Special & Regular Mtg Page 317 of 520 RES. NO. 8412
5 SECTION 8. The Mayor shall sign this Resolution and the City Clerk shall attest and certify to the passage and adoption thereof. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED THIS 6th day of October 2025.

Mary Mendoza, Mayor of the City of
San Fernando, California
ATTEST:

Julia Fritz, City Clerk
October 6, 2025 CC Special & Regular Mtg Page 318 of 520 RES. NO. 8412
6 CERTIFICATION
I, City Clerk of the City of San Fernando, California, do hereby certify that the foregoing is a full, true, and correct copy of Resolution No. 8412 which was regularly introduced and adopted by the City Council of the City of San Fernando, California, at a regular meeting thereof held on the 6th day of October 2025, by the following vote of the City Council:

AYES:

NAYS:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Fernando, California, this ____ day of October 2025.

Julia Fritz, City Clerk
October 6, 2025 CC Special & Regular Mtg Page 319 of 520 RES. NO. 8412
7 EXHIBIT “A”
2025 RATE STUDY
October 6, 2025 CC Special & Regular Mtg Page 320 of 520

CITY OF SAN FERNANDO
2025 Water and Sewer Rate Study
Draft Report July 2, 2025
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 321 of 520 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 322 of 520

CITY OF SAN FERNANDO
2025 WATER AND SEWER RATE STUDY

DRAFT REPORT
Prepared for:

City of San Fernando
117 N Macneil Street
San Fernando, CA 91340
Prepared by:

ROBERT D. NIEHAUS, INC.
140 East Carrillo Street
Santa Barbara, CA 93101
(805) 962-0611
RDN Project Number 381
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 323 of 520 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 324 of 520 June 25, 2025
Victor Meza
Water Operations Manager
City of San Fernando
117 N Macneil Street
San Fernando, CA 91340
Subject: 2025 Water and Sewer Rate Study
Dear Mr. Meza,
Robert D. Niehaus, Inc. is pleased to provide this Financial Planning, Revenue Requirements, Cost of Service, and Rate Setting Analysis report to the City of San Fernando for its Water and Sewer services.

This rate study includes a financial plan to determine the revenue requirements for the next five years and a comprehensive review of the City’s current rates based on the cost of service principles. This report outlines the approach, methodology, findings, and recommendations of the study. Each of the components of this study has enhanced the equitability of the rates we propose.

The proposed rates were developed utilizing the City’s customer usage data, billing records, accounting, operating and management records, capital plans, and reserve policies. Based on the Cityprovided data, key assumptions were made for the study using appropriate resources and our econometric and financial expertise. We are confident that the rates proposed in this report are costbased and are fully compliant with Proposition 218 and other legal requirements.

It has been an absolute pleasure and honor to work with your city. We thank you and all additional staff who helped complete this report.

Respectfully submitted,
Robert D. Niehaus, Ph.D. Anthony Elowsky M.A.

Managing Director/Principal Economist - RDN Project Manager - RDN RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 325 of 520 i
City of San Fernando – 2024 Water and Sewer Rate Study

TABLE OF CONTENTS
TABLE OF CONTENTS.............................................................................................................................. i LIST OF TABLES.......................................................................................................................................iii LIST OF FIGURES.....................................................................................................................................iv EXECUTIVE SUMMARY.............................................................................................................................1

1.1 Background...............................................................................................................................................1

1.2 Purpose of Study .....................................................................................................................................2

1.3 Rate Recommendations and Proposed Rates....................................................................................3 METHODOLOGY ........................................................................................................................................7

2.1 General Methodology..............................................................................................................................7

2.2 Legal Considerations...............................................................................................................................8

2.3 Key Assumptions .................................................................................................................................. 10 Escalation Factors ........................................................................................................................................ 10 Customer Growth.......................................................................................................................................... 11 Reserve Policy .............................................................................................................................................. 13 Equivalent Meter Size .................................................................................................................................. 13 WATER UTILITY .......................................................................................................................................15

3.1 Financial Plan........................................................................................................................................ 15 Demand Projections ..................................................................................................................................... 15 Revenues ....................................................................................................................................................... 16 Operating and Maintenance (O&M) Expense .......................................................................................... 17 Other Obligations.......................................................................................................................................... 17 Capital Improvement Projects..................................................................................................................... 17 Debt Service and Coverage Ratios............................................................................................................ 18 Reserves ........................................................................................................................................................ 19 Financial Plan................................................................................................................................................ 20 Revenue Requirements ............................................................................................................................... 22

3.2 Cost of Service Analysis ...................................................................................................................... 23 Functionalization of Costs ........................................................................................................................... 23 Allocation to Customer Classes.................................................................................................................. 31 Allocation to Units ......................................................................................................................................... 31

3.3 Water Rate Design ............................................................................................................................... 33 Bi-Monthly Fixed Charge ............................................................................................................................. 34 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 326 of 520 ii
City of San Fernando – 2024 Water and Sewer Rate Study
Variable Water Rates ................................................................................................................................... 35

3.4 Bill Impact Analysis............................................................................................................................... 37 SEWER UTILITY .......................................................................................................................................38

4.1 Financial Plan........................................................................................................................................ 38 Revenues ....................................................................................................................................................... 38 Operating and Maintenance (O&M) Expense .......................................................................................... 39 Other Obligations.......................................................................................................................................... 39 Capital Improvement Projects..................................................................................................................... 39 Debt Service and Coverage Ratios............................................................................................................ 40 Reserves ........................................................................................................................................................ 40 Financial Plan................................................................................................................................................ 42 Revenue Requirements ............................................................................................................................... 44

4.2 Cost of Service Analysis ...................................................................................................................... 45 Functionalization of Costs ........................................................................................................................... 45 Allocation to Units ......................................................................................................................................... 48

4.3 Rate Design........................................................................................................................................... 51 Residential Sewer Rate Calculation........................................................................................................... 53 Non-Residential Sewer Rate Calculation.................................................................................................. 53 Sewer Rates .................................................................................................................................................. 54 CONCLUSION...........................................................................................................................................55

5.1 Summary of Recommendations and Financial Results.................................................................. 55

5.2 Rate Impacts and Comparison ........................................................................................................... 67 APPENDIX.................................................................................................................................................69 RES. NO. 8412
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LIST OF TABLES
Table 1. Current Fixed Charges by Meter Size...........................................................................................................3 Table 2. Current Variable Water Rates ........................................................................................................................4 Table 3. Proposed Revenue Adjustments FY 2026 to FY 2030 ...............................................................................4 Table 4. Proposed Fixed Charges for All Customers by Meter Size, FY 2026 to FY 2030..................................4 Table 5. Proposed Groundwater Variable Water Rates for All Customers, FY 2026 to FY 2030 .......................4 Table 6. Proposed MWD Variable Water Rates for All Customers, FY 2026 to FY 2030 .....................................5 Table 7. Current Sewer Fixed Charges........................................................................................................................5 Table 8. Current Sewer Variable Charges ...................................................................................................................5 Table 9. Proposed Revenue Adjustments FY 2026 to FY 2030 ...............................................................................6 Table 10. Proposed Fixed Sewer Rates FY 2026 to FY 2030 ...................................................................................6 Table 11. Proposed Variable Sewer Rates FY 2026 to FY 2030...............................................................................6 Table 12. Expense Escalation Factors ......................................................................................................................11 Table 13. Annual Meter Count FY 2025 to FY 2030 .................................................................................................12 Table 14. Annual Sewer Customer Counts, FY 2025 to FY 2030...........................................................................13 Table 15. Water Reserve Policies and FY 2026 target ............................................................................................13 Table 16. Sewer Reserve Policies and FY 2026 target............................................................................................13 Table 17. AWWA Equivalent Meter Ratios ................................................................................................................14 Table 18. Annual Water Use by Customer Class in hcf, FY 2025 to FY 2030 .....................................................16 Table 19. Annual Other and Non-Operating Revenue by Source, FY 2025 to FY 2030.....................................16 Table 20. Water Utility Operating Forecast, FY 2025 to FY 2030 ..........................................................................17 Table 21. Operating Expenses by Expense Category, FY 2025 to FY 2030 ........................................................17 Table 22. Rate Study CIP Expenses by Expense Type, FY 2025 to FY 2030 ......................................................18 Table 23. Rate Study Debt Service Expenses, FY 2025 to FY 2030......................................................................18 Table 24. Water Reserve Target, FY 2025 to FY 2030 .............................................................................................19 Table 25. Status Quo Financial Pro Forma for City of San Fernando Water System, FY 2025 to FY 2030 ...20 Table 26. Proposed Financial Pro Forma for City of San Fernando Water System, FY 2025 to FY 2030 ......21 Table 27. Revenue Requirements for City of San Fernando Water Utility, FY 2025 ..........................................22 Table 28. Percentage of Operating Costs Allocated to Standard Functions ......................................................24 Table 29. Percentage of Non-operating Costs Allocated to Standard Functions..............................................24 Table 30. System-Wide Water Use by Billing Period ..............................................................................................25 Table 31. Water Use Divided by Billing Days ...........................................................................................................25 Table 32. System-Wide Peak Delivery Factor...........................................................................................................25 Table 33. Percent of Operating Function Categories Allocated to Cost Components .....................................27 Table 34. Total of Operating Functional Categories Allocated to Cost Components .......................................27 Table 35. Percent of Non-Operating Function Categories Allocated to Cost Components.............................28 Table 36. Total of Non-Operating Functional Categories Allocated to Cost Components ..............................28 Table 37. Operating and Non-Operating Cost Allocation to Cost Components ................................................29 Table 38. Rate Revenue Requirements for Test Year, FY 2025.............................................................................29 Table 39. Final Cost of Service Allocations with all Adjustments ........................................................................30 Table 40. Total Equivalent Meters Used for Cost Allocation .................................................................................31 Table 41. Cost of Service Units...................................................................................................................................31 Table 42. Rate Revenue Requirements Divided by the Corresponding Units....................................................32 Table 43. Allocation of Fixed and Variable Costs....................................................................................................33 Table 44. Fixed Cost Components Divided by Number of Units...........................................................................34 Table 45. Bi-Monthly Water Service Fixed Charge Calculation.............................................................................34 Table 46. Proposed 5-year Fixed Charge Schedule ................................................................................................35 RES. NO. 8412
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Table 47. Variable Rate Costs and Components .....................................................................................................36 Table 48. Variable Rate Calculation ...........................................................................................................................36 Table 49. Proposed 5-Year Variable Rate Schedule................................................................................................36 Table 50. MWD Variable Rate Calculation.................................................................................................................37 Table 51. Proposed 5-Year Variable MWD Rate Schedule .....................................................................................37 Table 52. Sewer Customer Growth, FY 2025 to FY 2030 ........................................................................................38 Table 53. Sewer System Revenue Forecast, FY 2025 to FY 2030 .........................................................................39 Table 54. Sewer System O&M Expense Forecast, FY 2025 to FY 2030 ...............................................................39 Table 55. Rate Study Sewer CIP Expenses by Expense Type, FY 2025 to FY 2030 ..........................................39 Table 56. Rate Study Debt Service Expenses, FY 2025 to FY 2030......................................................................40 Table 56. Sewer Reserve Target, FY 2025 to FY 2030.............................................................................................41 Table 58. Status Quo Financial Pro Forma for City of San Fernando Sewer System, FY 2025 to FY 2030..42 Table 59. Proposed Financial Pro Forma for City of San Fernando Sewer System, FY 2025 to FY 2030 .....43 Table 60. Revenue Requirements for City of San Fernando Sewer Utility, FY 2025 .........................................44 Table 60. Percent of O&M Functional Categories Allocated .................................................................................46 Table 61. Percent of O&M Functional Categories Allocated to Cost Components ...........................................47 Table 62. Total of Operating Functional Categories Allocated to Cost Components .......................................47 Table 63. Percent of Asset Value Functional Categories Allocated.....................................................................47 Table 64. Percent of Non-operating Functional Categories Allocated to Cost Components ..........................47 Table 65. Total of Non-operating Functional Categories Allocated to Cost Components ...............................48 Table 67. Revenue Requirement Cost Allocation by Cost Component...............................................................48 Table 68. Total Plant Sewer Flows .............................................................................................................................49 Table 69. Strength Factors by Customer Class .......................................................................................................49 Table 70. Strength Contribution by Customer Class ..............................................................................................50 Table 71. Cost of Service Units of Service................................................................................................................50 Table 72. Cost of Service Unit Cost ...........................................................................................................................50 Table 73. Cost of Service Allocated to Customer Class.........................................................................................51 Table 74. Flow Rate Component.................................................................................................................................52 Table 75. Strength Rate Component..........................................................................................................................52 Table 76. Fixed Rate Component................................................................................................................................52 Table 77. Residential Customers Sewer Rate Calculation.....................................................................................53 Table 78. Commercial Customers Fixed Sewer Rate Calculation ........................................................................53 Table 79. Commercial Customers Variable Sewer Rate Calculation....................................................................54 Table 80. Proposed Variable Sewer Rates FY 2026 to FY 2030.............................................................................54 Table 81. Proposed Fixed Rates for FY 2026 to FY 2030........................................................................................59 Table 82. Proposed Variable and MWD Variable Rates for FY 2026 to FY 2030.................................................59 Table 83. Proposed Sewer Rates Based on the Proposed Revenue Adjustment..............................................64

LIST OF FIGURES
Figure 1. City of San Fernando Boundary and Zoning.............................................................................................2 Figure 2. Water and Sewer Rate Study Process ........................................................................................................7 Figure 3. Annual Water Customer Growth FY 2025 to FY 2035 ............................................................................12 Figure 4. Annual Aggregate Water Use, FY 2025 to FY 2035.................................................................................15 Figure 5. Rate Study CIP Expenses by Funding Source, FY 2025 to FY 2030....................................................18 Figure 6. Water Cash Balances and Reserve Target with Current Rates, FY 2025 to FY 2030 .......................19 RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 329 of 520 v
City of San Fernando – 2024 Water and Sewer Rate Study
Figure 7. A Typical Flow for Cost of Service Analysis Process............................................................................23 Figure 8. Customer Impact by Usage for ¾” Meter.................................................................................................37 Figure 9. Rate Study Sewer CIP Expenses by Funding Source, FY 2025 to FY 2030 .......................................40 Figure 10. Sewer Cash Balances and Reserve Target With Current Rates, FY 2025 to FY 2030 ....................41 Figure 11. A Typical Flow for Cost of Service Analysis Process .........................................................................45 Figure 12. Rate Study Water Status Quo Financial Plan ........................................................................................55 Figure 13. Ending Water Cash Balances with No Revenue Adjustment .............................................................56 Figure 14. Recommended Water Revenue Adjustment..........................................................................................57 Figure 15. Recommended Rate Study Adjusted Water Financial Plan................................................................58 Figure 25. Ending Water Cash Balances with Recommended Revenue Adjustments .....................................60 Figure 31. Rate Study Sewer Status Quo Financial Plan .......................................................................................61 Figure 32. Ending Sewer Cash Balances with No Revenue Adjustment.............................................................62 Figure 33. Recommended Sewer Revenue Adjustment.........................................................................................63 Figure 20. Rate Study Adjusted Sewer Financial Plan ...........................................................................................65 Figure 35. Recommended Ending Sewer Cash Balances with Revenue Adjustment.......................................66 Figure 22. Single Family Residential 3/4" Combined Impacts for Water and Sewer.........................................67 Figure 23. Multi-Family Residential Combined Impacts for Water and Sewer (Four Units).............................68 RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 330 of 520 1 City of San Fernando – 2025 Water and Sewer Rate Study

EXECUTIVE SUMMARY

1.1 Background
The City of San Fernando (City), incorporated in 1911, provides water to a population of approximately 26,000 throughout its service area. The City is located in the San Fernando Valley northwest of downtown Los Angeles and is bounded on all sides by the City of Los Angeles. The City primarily receives its water from the Sylmar Groundwater Basin. The City can also acquire imported water from Metropolitan Water District of Southern California (MWD). The City distributes water to approximately 5,260 service connections through a 66.5-mile network of distribution mains ranging from 4 to 20 inches in size. The water system consists of two pressure zones that provide modified pressure to customers. The existing sewer system is gravity fed and includes around 42 miles of sewer line. The City contracts with the City of Los Angeles for sewer treatment and disposal. Figure 1 presents the limits of the City of San Fernando as well as the zoning.

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October 6, 2025 CC Special & Regular Mtg Page 331 of 520 2 City of San Fernando – 2025 Water and Sewer Rate Study Figure 1. City of San Fernando Boundary and Zoning

1.2 Purpose of Study
The purpose of this analysis is to conduct a rate study which evaluates the City’s current utility rates and financial data and propose new rates for its Water and Sewer services, if necessary, to meet the City’s financial and strategic goals.

The primary objectives of this Study include:
• Projecting revenues and expenses for a ten-year study period • Proposing five-year revenue adjustments to fund the City’s projected financial needs • Proposing rates that aim to minimize the impact on customers RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 332 of 520 3 City of San Fernando – 2025 Water and Sewer Rate Study • Producing an administrative record which effectively summarizes all findings • Supporting the City through the Proposition 218 process

1.3 Rate Recommendations and Proposed Rates
Current Water Rates
Currently, the City’s water customers pay a bi-monthly fixed charge based on the customer’s meter size.

Customers also pay variable charges based on water use, which is billed per hundred cubic feet (hcf).

All customers currently have a single flat rate for each hcf of water used. The current rates as described are displayed in Table 1 and Table 2. Note that all customers with 6-inch and larger meters currently pay the same bi-monthly rate.

Table 1. Current Fixed Charges by Meter Size
Customer Class Meter Size Bi-Monthly Fee
All Customers 3/4" $55.94
1" $113.66
1 1/2" $209.86
2" $325.30
3" $633.14
4" $979.46
6" $1,941.46
8" $1,941.46
10" $1,941.46
Fixed Charges
Water
• Adjusting rates annually by the recommended revenue adjustments of 5.0 percent per year • Develop fixed meter rates for larger meters based on their respective capacity requirements • Introducing a passthrough rate for when the City must purchase water from the Metropolitan Water District
Sewer
• Adjusting rates annually by the recommended revenue adjustments of 3.0 percent per year • Adjust basis for School sewer rates to water use rather than number of students RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 333 of 520 4 City of San Fernando – 2025 Water and Sewer Rate Study Table 2. Current Variable Water Rates
Customer Class Tier - Width Unit Cost
All Customers All Use $3.10
Variable Charges
Proposed Water Rates
RDN proposes the following rate and revenue adjustments to accomplish the City’s financial goals of capital and reserve funding. To achieve the proposed financial plan, RDN recommends that the City raise water revenues by 5.0 percent each year of the rate setting period which includes FY 2026 through FY 2030.

Table 3. Proposed Revenue Adjustments FY 2026 to FY 2030 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Proposed Adjustment 5.0% 5.0% 5.0% 5.0% 5.0%
Costs were allocated equitably between all customers during the cost of service analysis. The rates for each meter size represent an equitable portion of the total cost of service for each class allocated the respective meter based on the calculations shown in the Cost of Service Analysis. Variable rates are based on the cost of providing water depending on the water source used by the City. The City will implement each fiscal year rate adjustments on January 1 st of the fiscal year. The proposed rates which
result from these adjustments are shown in Table 4, Table 5, and Table 6.

Table 4. Proposed Fixed Charges for All Customers by Meter Size, FY 2026 to FY 2030 Meter Size FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
3/4" $56.63 $59.46 $62.44 $65.56 $68.84
1" $112.55 $118.18 $124.09 $130.29 $136.81
1 1/2" $205.75 $216.04 $226.84 $238.19 $250.10
2" $317.60 $333.48 $350.15 $367.66 $386.04
3" $671.76 $705.35 $740.62 $777.65 $816.53
4" $1,193.69 $1,253.38 $1,316.04 $1,381.85 $1,450.94
6" $3,001.80 $3,151.89 $3,309.49 $3,474.96 $3,648.71
8" $5,238.64 $5,500.57 $5,775.60 $6,064.38 $6,367.60
10" $7,848.29 $8,240.70 $8,652.74 $9,085.37 $9,539.64
Fixed Charges
Table 5. Proposed Groundwater Variable Water Rates for All Customers, FY 2026 to FY 2030 All Customers FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
All Use $3.28 $3.45 $3.62 $3.80 $3.99
Variable Charges
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October 6, 2025 CC Special & Regular Mtg Page 334 of 520 5 City of San Fernando – 2025 Water and Sewer Rate Study Table 6. Proposed MWD Variable Water Rates for All Customers, FY 2026 to FY 2030 All Customers FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
MWD Water $4.98 $5.23 $5.49 $5.76 $6.05
Variable Charges
Current Sewer Rates
Currently, the City’s sewer customers pay a bi-monthly fixed charge based on their customer class. Nonresidential customers are also assessed a variable charge, which is based on water usage or, for School and Higher Education customers, student enrollment. These variable charges vary by customer class to account for differences in the level of treatment required for the wastewater they discharge. The current sewer rates are displayed in Table 7 and Table 8.

Table 7. Current Sewer Fixed Charges
Customer Class Bi-Monthly Fee
Residential (Flat Rate) $84.82
Residential (Multi Unit) $62.11
Commercial Group II $35.59
Commercial Group III $35.59
Commercial Industrial $35.59
Commercial Group IV $35.59
Commercial Group V $35.59
Commercial Schools $35.59
Commercial Higher Education $35.59
Commercial City Property $35.59
Fixed Charges
Table 8. Current Sewer Variable Charges
Customer Class Unit Unit Cost
Commercial Group II All Use $2.89
Commercial Group III All Use $4.79
Commercial Industrial All Use $2.58
Commercial Group IV All Use $7.08
Commercial Group V All Use $2.89
Commercial Schools Per Student $1.86
Commercial Higher Education Per Student $1.86
Commercial City Property All Use $2.51
Variable Charges
Proposed Sewer Rates
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October 6, 2025 CC Special & Regular Mtg Page 335 of 520 6 City of San Fernando – 2025 Water and Sewer Rate Study The recommended sewer rates include a revenue adjustment schedule designed to contribute to the City’s reserves and fund significant capital improvements. RDN, working with City staff, determined that an annual increase of 3.0 percent through the study period is necessary to maintain healthy sewer fund balances. The proposed rates also revise the rate structure. Notably, School and Higher Education customers will now be charged variable rates based on water usage rather than student enrollment. The process used to determine equitable sewer rates is thoroughly described in the cost of service and rate design sections of this report. The proposed revenue adjustments, the proposed fixed rates, and the proposed variable rates for FY 2026 – FY 2030 are shown in Table 9, Table 10, and Table 11 respectively.

Table 9. Proposed Revenue Adjustments FY 2026 to FY 2030 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Proposed Adjustment 3.0% 3.0% 3.0% 3.0% 3.0%
Table 10. Proposed Fixed Sewer Rates FY 2026 to FY 2030 Customer Class FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Residential (Flat Rate) $82.43 $84.91 $87.45 $90.08 $92.78 Residential (Multi Unit) $68.39 $70.45 $72.56 $74.74 $76.98 Commercial Group II $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group III $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Industrial $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Group IV $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group V $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Schools $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Higher Education $34.99 $36.04 $37.12 $38.23 $39.38 Commercial City Property $34.99 $36.04 $37.12 $38.23 $39.38 Fixed Charges
Table 11. Proposed Variable Sewer Rates FY 2026 to FY 2030 Customer Class FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Commercial Group II $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Group III $5.00 $5.15 $5.31 $5.47 $5.63
Commercial Industrial $2.98 $3.07 $3.16 $3.26 $3.36
Commercial Group IV $7.08 $7.29 $7.51 $7.73 $7.97
Commercial Group V $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Schools $2.34 $2.41 $2.48 $2.55 $2.63
Commercial Higher Education $2.34 $2.41 $2.48 $2.55 $2.63 Commercial City Property $2.93 $3.02 $3.11 $3.20 $3.30
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October 6, 2025 CC Special & Regular Mtg Page 336 of 520 7 City of San Fernando – 2025 Water and Sewer Rate Study

METHODOLOGY

2.1 General Methodology
The Water and Sewer rates were developed using principles set forth by the American Water Works Association (AWWA) and the Water Environment Federation (WEF). RDN rate-making practices incorporate methods described in the AWWA Manual 1 (M1)1for Water Systems and the WEF Financing and Charges for Sewer Systems2 wherever possible. Figure 2 presents the steps taken to develop the City’s proposed rates.

Figure 2. Water and Sewer Rate Study Process
• Growth Projection: project customer growth for the ten-year study period, FY 2026 through FY 2035, using the City’s historical customer growth data. Forecast revenues for the study period based on the projected customer growth.
• Financial Planning and Revenue Requirements: develop a ten-year financial plan based on the projected revenues and annual costs which include operating, debt service, and capital expenses.

The City’s target reserve level should also be considered as part of the financial planning. Based on the financial planning, revenue requirements are determined for each year of the study period. • Cost of Service: evaluate the customer classifications and allocate costs based on their service requirements.
• Rate Design: design rates to equitably recover the rate revenue requirements from each customer. 1 Principles of Water Rates, Fees, and Charges, Seventh Edition, Manual of Water Supply Practices, American Water Works Association
2 Financing and Charges for Sewer Systems, WEF Manual of Practice Number 27, Water Environment Federation Growth Projection
Financial Planning
and Revenue
Requirements
Cost of Service Rate Design
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October 6, 2025 CC Special & Regular Mtg Page 337 of 520 8 City of San Fernando – 2025 Water and Sewer Rate Study

2.2 Legal Considerations
This section describes the legal framework considered in the development of the recommended rates to ensure that the calculated cost of service rates provide a fair and equitable allocation of costs to each customer class.

California Constitution‐Article XIII C (Proposition 26) California voters approved Proposition 26 on November 2, 2010. Proposition 26 amended Article XIII C of the State Constitution to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” with listed exceptions. By means of these exceptions, Article XIII C classifies several types of charges, in addition to property-related charges, that are not taxes, such as charges for specific services or benefits, regulatory charges and penalties.

Article XIII C’s definition of “tax” lists the following exceptions: (1) a charge imposed for a specific benefit conferred or privilege granted directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (2) a charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (3) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (4) a charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property; (5) a fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law; (6) a charge imposed as a condition of property development; and (7) assessments and property-related fees imposed in accordance with the provisions of Article XIII D.

Proposition 26 also provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payer bear a fair or reasonable relationship to the payer’s burdens on, or benefits received from, the governmental activity. Like the proportionality requirements of Article XIII D, assessment of rates under these requirements, if applicable, would be supported by the cost of service approach.

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October 6, 2025 CC Special & Regular Mtg Page 338 of 520 9 City of San Fernando – 2025 Water and Sewer Rate Study California Constitution‐Article XIII D, Section 6 (Proposition 218) In November 1996, California voters passed Proposition 218, the “Right to Vote on Taxes Act.” This constitutional amendment protects taxpayers by limiting the methods by which local governments can create or increase taxes, fees and charges without taxpayer consent. Between 2002 and 2017, California courts have ruled that fees associated with providing water services are “property-related” and thus under the jurisdiction of Prop 218. The principal requirements for fairness of the fees, as they relate to public water service, are as follows: Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service. Revenues derived by the fee or charge shall not be used for any other purpose other than that for which the charge was imposed. The amount of the fee or charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

Reliance by an agency on any parcel map, including, but not limited to, an assessor’s parcel map, may be considered a significant factor in determining whether a fee or charge is imposed as an incident of property ownership for purposes of this article.

The rates developed in this report use a methodology to establish an equitable system of charges that recovers the cost of providing service and fairly apportions costs to each customer as required by Proposition 218.

California Constitution‐Article X, Section 2
Article X, Section 2 of the California Constitution (established in 1976) provides as follows:
“It is hereby declared that because of the conditions prevailing in this State the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for the public welfare.” As such, public agencies are constitutionally mandated to maximize the beneficial use of water, prevent waste, and encourage efficiency which this Study achieves.

Government Code Section 53756:
(a) It adopts the schedule of fees or charges for a property-related service for a period not to exceed five years pursuant to Section 53755.
(b) The schedule of fees or charges includes a schedule of adjustments, including a clearly defined formula for adjusting for inflation. Any inflation adjustment to a fee or charge, however, may not exceed the cost of providing that service.

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October 6, 2025 CC Special & Regular Mtg Page 339 of 520 10 City of San Fernando – 2025 Water and Sewer Rate Study (c) Provides for automatic adjustments that pass through adopted increases or decreases in wholesale charges for water, sewage treatment, or wastewater treatment established by another public agency.

The report should also note that any adjustments per Govt. Code Section 53755(a), must be preceded by not less than 30 days notice before the effective date of the adjustment.

This rate study, in conjunction with the City‘s findings and determinations for individual customers, establishes an equitable rate for each customer.

2.3 Key Assumptions
A test year, FY 2025, was selected for which costs are to be analyzed and rates to be established for this study. The financial plan was built for the next ten years, including the five-year study period FY 2026 through FY 2030 with a detailed revenue adjustment plan. The cost of service rates are adjusted each year by the determined revenue adjustments based on the financial plan. The City’s fiscal year starts on July 1 and ends on June 30.

Escalation Factors
The financial plan was built based on an assumption in the projected escalation of revenues and expenses associated with both operations and maintenance (O&M) and capital improvement projects (CIPs). Bureau of Labor Statistics (BLS) Los Angeles-Long Beach-Anaheim Consumer Price Index (CPI), Federal Reserve Bank of St. Louis (FRED) Economic Research Division, Quarterly Census of Employment and Wages (QCEW), and Engineering News Record (ENR) Building Cost Index (BCI).

Escalation factors used in this study are shown in Table 12. The Los Angeles-Long Beach-Anaheim geography was chosen.

The overall escalation factor is derived solely from the All Items series of the BLS Los Angeles-Long Beach-Anaheim CPI. The All Items series represents a broad measure of the average change in prices over time for a wide array of goods and services. The market basket includes categories such as food and beverage, housing, apparel, transportation, medical, and other goods and services.

The Utilities escalation factor is derived from the Fuels and utilities and Energy series of the BLS Los Angeles-Long Beach-Anaheim CPI. RDN takes a weighted average of the Energy and Fuels and Utilities data sets to form a combined utilities inflation factor. This escalation factor accurately captures the costs associated with energy consumption and utility service.

The payroll escalation factor was provided by City Staff based on historical actual costs and unknown impacts of employee bargaining unit negotiations.

RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 340 of 520 11 City of San Fernando – 2025 Water and Sewer Rate Study The fuels and automobile escalation factor is derived from the Private Transportation, Fuels and Utilities, and Motor Fuel series of the BLS Los Angeles-Long Beach-Anaheim CPI. RDN takes a weighted average of the Private Transportation, Fuels and utilities, and Motor Fuel data sets to form a combined Fuels and Automobile inflation factor.

The Construction escalation factor is derived using ENR’s BCI for the selected geography. ENR publishes a building cost index for Los Angeles, San Francisco, California, and the National level. RDN analyzed all four indices and, in coordination with staff, ultimately selected the index which best represents the building cost environment in the Agency, the Los Angeles BCI.

The insurance escalation factor is derived solely from the Federal Reserve Bank of St. Louis’ Producer Price Index for for insurance premiums. This index tracks the insurance costs for both liability and property coverage for businesses in the United States.

Table 12. Expense Escalation Factors
Category FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Payroll 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Other Employee 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% Utilities 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% Chemicals 6.1% 6.1% 6.1% 6.1% 6.1% 6.1% 6.1% 6.1% 6.1% 6.1% Water Treatment 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% Fuel/Automobile 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% Construction 6.4% 4.1% 4.1% 4.1% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% Insurance 9.6% 8.8% 6.4% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Overall 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% Equipment 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% Customer Growth
Customer growth projections were developed based on an analysis of historical billing records and longterm growth trends observed within the City. Additionally, per-account water use was assumed to remain stable throughout the study period.

Water
There are currently approximately 5,260 water meters connected to the City’s water system. In ten years, 5,782 meters are projected. A total of 259 new Water Service connections are projected to join the water system during the 5-year rate setting period, approximately 52 per year. Figure 3 shows the annual water customer growth for the study period. Table 13 shows the projected number of meters and fire service lines for all customer classes during the rate setting period.

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October 6, 2025 CC Special & Regular Mtg Page 341 of 520 12 City of San Fernando – 2025 Water and Sewer Rate Study Figure 3. Annual Water Customer Growth FY 2025 to FY 2035 5,260 5,313 5,362 5,415 5,465 5,519 5,570 5,623 5,675 5,730 5,782 -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10"
Table 13. Annual Meter Count FY 2025 to FY 2030
Meter Size FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 3/4" 4,258 4,300 4,342 4,385 4,427 4,471
1" 632 639 645 651 657 663
1 1/2" 176 178 179 180 181 183
2" 165 167 167 169 170 172
3" 17 17 17 18 18 18
4" 8 8 8 8 8 8
6" 3 3 3 3 3 3
8" - - - - - -
10" 1 1 1 1 1 1
Total 5,313 5,260 5,362 5,415 5,465 5,519
Sewer
During the 5-year study period, a total of 317 new sewer customer connections are expected. Growth was projected for sewer customers based on an analysis of historical billing records and City growth RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 342 of 520 13 City of San Fernando – 2025 Water and Sewer Rate Study trends. Table 14 shows the projected number of billing units from each customer class during the rate setting period.

Table 14. Annual Sewer Customer Counts, FY 2025 to FY 2030 Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Residential (Flat Rate) 3,781 3,744 3,819 3,857 3,895 3,934 Residential (Multi Unit) 2,081 2,064 2,099 2,116 2,134 2,151 Commercial Group II 294 297 300 303 306 309
Commercial Group III 54 55 56 57 58 59
Commercial Group IV 80 81 82 83 84 85
Commercial Group V 80 81 82 83 84 85
Commercial Industrial 165 167 169 171 173 175
Commercial Schools 10 10 10 10 10 10
Commercial Higher Education 6 6 6 6 6 6
Commercial City Property 27 27 27 27 27 27
Total 6,586 6,524 6,650 6,713 6,777 6,841
Reserve Policy
The City’s reserve policy includes reserves for each utility. The total water fund reserve target for FY 2025 is $3.1 million. The total sewer fund reserve target for FY 2025 is $1.7 million. Table 15 and Table 16 show the reserve targets for the Water and Sewer utilities for FY 2025, respectively, as well as the reserve policy for each individual reserve.

Table 15. Water Reserve Policies and FY 2026 target
Reserve Policy FY 2025 Target
Stabilization and Contigency Funds 3 Months Operating Expenses $1,184,610 Infrastructure Replacement Fund Sufficient to provide funding for infrastructure replacement $1,907,018
Total Reserve Target $3,091,628
Table 16. Sewer Reserve Policies and FY 2026 target
Reserve Policy FY 2025 Target
Stabilization and Contigency Funds 3 Months Operating Expenses $864,259 Infrastructure Replacement Fund Sufficient to provide funding for infrastructure replacement $802,946
Total Reserve Target $1,667,205
Equivalent Meter Size
When designing fixed bi-monthly water service charges, the potential demand or capacity requirements placed on the water system can be measured by the size of installed meters which receive services from RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 343 of 520 14 City of San Fernando – 2025 Water and Sewer Rate Study the system. The safe operating flow (or capacity) of a particular size of the meter is essentially the limiting factor in terms of the demand that can be exerted on the water system through the meter. The ratio of the safe operating capacity of various sizes of meters relative to the capacity of a base meter may be used to determine appropriate charges for the larger meter sizes3. The City considers 3/4” meters as the base meter capacity. The capacity ratio is calculated using the meter capacities in gallons per minute (gpm) provided in the AWWA M1 for meters larger than 3/4 inch. Table 17 shows the equivalent meter ratios used in this study for standard meters.

Table 17. AWWA Equivalent Meter Ratios
Meter Size Meter Ratio
3/4" 1.00
1" 2.50
1 1/2" 5.00
2" 8.00
3" 17.50
4" 31.50
6" 80.00
8" 140.00
10" 210.00
3 From “Principles of Water Rates, Fees, and Charges” by American Water Works Association, 2017, Seventh Edition, Appendix B, p. 385.

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October 6, 2025 CC Special & Regular Mtg Page 344 of 520 15 City of San Fernando – 2025 Water and Sewer Rate Study

WATER UTILITY

3.1 Financial Plan
RDN built a 10-year financial model for the water utility to meet the City’s long-term financial goals.

Demand Projections
Using historical billing records, RDN first calculated aggregate water usage to establish a baseline for demand projections. We then determined per-account usage for each customer class by dividing total usage by the number of accounts. For the purposes of this study, per-account usage was assumed to remain constant over the forecast period. This assumption allows projected changes in water demand to be driven solely by changes in the number of accounts. Finally, projected account counts were multiplied by per-account usage to estimate total water demand by customer class. Figure 4 shows the City’s projected water demand over the next ten years.

Figure 4. Annual Aggregate Water Use, FY 2025 to FY 2035

0.99 1.00 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08

0.00 0.20

0.40 0.60

0.80 1.00

1.20 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Million HCF Single Family Multi-Family Commercial Industrial Irrigation Church City Low Income Elementary Higher Education
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October 6, 2025 CC Special & Regular Mtg Page 345 of 520 16 City of San Fernando – 2025 Water and Sewer Rate Study Table 18 shows the annual water use projection by customer class for the rate setting period.

Table 18. Annual Water Use by Customer Class in hcf, FY 2025 to FY 20304 Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Single Family 470,780 475,432 480,210 484,988 489,767 494,671 Multi-Family 159,856 161,211 162,566 163,920 165,275 166,630 Commercial 154,427 156,162 157,897 159,979 161,714 163,449 Industrial 76,237 76,237 76,237 76,237 76,237 76,237
Irrigation 29,036 27,675 29,036 29,944 29,944 30,851
Church 11,668 11,668 11,668 11,668 11,668 11,911
County 19,823 19,823 19,823 19,823 19,823 19,823
City 23,889 23,226 23,889 24,221 24,553 24,885
Low Income 24,365 24,578 24,790 25,003 25,216 25,429
Elementary 7,598 7,598 7,598 7,598 7,598 7,598
Higher Education 9,743 9,743 9,743 9,743 9,743 9,743
Total 985,397 995,376 1,003,457 1,013,124 1,021,537 1,031,226 Revenues
Based on the account growth and water demand projections, RDN forecasted revenues generated from customer rates using the current water rates for the study period, which total approximately $5.6 to $5.8 million annually. Other operating income and non-operating revenue are estimated to provide supplemental revenue each year. Table 19 shows the projected other operating and non-operating revenue for the water utility by source for FY 2025 to FY 2030.

Table 19. Annual Other and Non-Operating Revenue by Source, FY 2025 to FY 2030 Non-Rate Revenue FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Interest Income $50,000 $50,250 $50,501 $50,754 $51,008 $51,263 Meter And Fire Service $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 Water Installation Charge $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 Capital Facility Charges $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Backflow Prevention Fee $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 Miscellaneous Revenue $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Total $410,000 $410,250 $410,501 $410,754 $411,008 $411,263 The system’s total revenue for the study period is estimated to be approximately $6.0 to $6.3 million annually under the current rates. Table 20 shows the projected revenue flow for the study period (FY 2025 – FY 2030) without any revenue adjustments, projections are based on water use and customer growth projections as well as other operating and non-operating revenue estimates provided by City staff. 4 Use projections derived from historical bi-monthly customer billing records provided by the City and trends in water use RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 346 of 520 17 City of San Fernando – 2025 Water and Sewer Rate Study Table 20. Water Utility Operating Forecast, FY 2025 to FY 2030 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Revenue from Rates
Fixed Charges $2,531,774 $2,556,803 $2,575,987 $2,603,209 $2,624,344 $2,649,362 Variable Charges $3,054,729 $3,085,667 $3,110,717 $3,140,685 $3,166,764 $3,196,800 Rate Revenue Total $5,586,504 $5,642,469 $5,686,704 $5,743,894 $5,791,108 $5,846,162 Other Operating Revenues $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 Non-operating Revenues $50,000 $50,250 $50,501 $50,754 $51,008 $51,263 Total $5,996,504 $6,052,719 $6,097,205 $6,154,647 $6,202,116 $6,257,424 Operating and Maintenance (O&M) Expense
The water utility’s budget includes $4.7 million in operating expenses for FY 2025. Total operating expenses are expected to increase approximately 4.0 percent per year based on the application of specific inflation factors to each budget line item. By the end of the five-year rate setting period, total operating expenses are expected to reach $5.8 million. Table 21 shows projected operating expenses for the rate setting period by budget category.

Table 21. Operating Expenses by Expense Category, FY 2025 to FY 20305 Expense Category FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Water Attorney $1,000 $1,032 $1,065 $1,099 $1,134 $1,171 Water Retirement $350,254 $376,587 $404,900 $435,342 $468,073 $503,264 Water Administration $1,649,761 $1,707,900 $1,768,027 $1,828,289 $1,887,205 $1,948,384 Utility Billing $399,952 $419,234 $438,958 $456,842 $471,041 $485,746 Water Distribution $682,194 $711,971 $742,718 $772,137 $798,371 $825,742 Water Production $1,655,277 $1,723,348 $1,794,048 $1,864,602 $1,932,794 $2,004,040 Total Operating $4,738,438 $4,940,072 $5,149,716 $5,358,311 $5,558,618 $5,768,347 Other Obligations
Other obligations included in the financial plan are capital improvement projects funded by rates known as PAYGO (Pay As You Go), debt service payments, and reserve contributions made from rates.

Capital Improvement Projects
The City plans to spend an average of $3.0 million a year on capital projects during the rate setting period. $2.0 million on average of the total expenditures per year will be funded by grants. Table 22 shows the City’s scheduled capital improvement projects for the next five years by funding source. Figure 5 5 City staff provided current year operating expenses by category; projections are based on individual line-item inflationary factors shown in Table 14
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October 6, 2025 CC Special & Regular Mtg Page 347 of 520 18 City of San Fernando – 2025 Water and Sewer Rate Study graphically shows the capital plan by funding source, only PAYGO funded expenditure will impact customer rates.

Table 22. Rate Study CIP Expenses by Expense Type, FY 2025 to FY 20306 CIP Funding Source FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Rate Funded $755,000 $1,004,000 $1,105,000 $1,000,000 $1,000,000 $1,000,000 Grant Funded $0 $10,000,000 $0 $0 $0 $0
Total CIP $755,000 $11,004,000 $1,105,000 $1,000,000 $1,000,000 $1,000,000 Figure 5. Rate Study CIP Expenses by Funding Source, FY 2025 to FY 2030 Debt Service and Coverage Ratios
The water utility received an internal loan in 2021 to fund pension obligations, “2021B Pension Obligation Bond.” Payments are made annually; however, these debt obligations not subject to debt service coverage requirements. Table 23 shows the water utility’s annual debt payments used in this study.

Table 23. Rate Study Debt Service Expenses, FY 2025 to FY 2030 Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Principal $113,150 $113,150 $113,150 $116,800 $116,800 $125,560 Interest $82,262 $81,188 $79,775 $78,033 $76,002 $68,367 Total Debt Service $195,412 $194,338 $192,925 $194,833 $192,802 $193,927 6 City’s 10-year CIP budget as well as input from staff was used for project cost, project type, and funding source $0
$2
$4
$6
$8
$10
$12
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Millions
Rate Funded Grant Funded
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October 6, 2025 CC Special & Regular Mtg Page 348 of 520 19 City of San Fernando – 2025 Water and Sewer Rate Study Reserves
The City must maintain an appropriate reserve balance to ensure the day-to-day operation will continue during emergencies and guarantee the future stability of the system. The City’s financial goal is to build an appropriate level of cash reserves for each reserve fund included in the financial plan of this Study.

The reserve target for the water utility is described below:
• Stabilization and Contingency Funds: three months of operating expenses • Infrastructure Replacement Fund: sufficient to provide funding for infrastructure replacement7 The reserve target at the end of the study period reaches $3.3 million. Table 24 shows the City’s reserve targets for FY 2025 through FY 2030 based on the current reserve policy. Figure 6 displays the resulting cash balances versus the reserve target under the current rates. Reserve targets based on reserve policy shown in Table 15 and operating and capital expenditure totals shown in Tables 20 and 21, respectively.

Table 24. Water Reserve Target, FY 2025 to FY 2030
Reserve Fund FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Stabilization and Contigency Funds $1,184,610 $1,235,018 $1,287,429 $1,339,578 $1,389,654 $1,442,087 Infrastructure Replacement Fund $1,907,018 $1,907,018 $1,907,018 $1,907,018 $1,907,018 $1,907,018 Total Reserve Target $3,091,628 $3,142,036 $3,194,447 $3,246,596 $3,296,673 $3,349,105 Figure 6. Water Cash Balances and Reserve Target with Current Rates, FY 2025 to FY 2030 7 the annual average of total planned capital spending over ten years was used to calculate this reserve target RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 349 of 520 20 City of San Fernando – 2025 Water and Sewer Rate Study Financial Plan
Based on the projected total revenue and necessary costs to be recovered during the study period, RDN built a financial plan that will generate sufficient revenues for the day-to-day operation and annual PAYGO and make appropriate contributions to reserves. The City currently has a projected ending cash balance of $1.7 million in FY 2025. Table 25 shows the status quo water pro forma with no revenue adjustments and the resulting ending balances based on the revenues and expenses outlined in this section.

Table 25. Status Quo Financial Pro Forma for City of San Fernando Water System, FY 2025 to FY 2030
Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0%
Rate Month Implemented
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Cash Position Opening Balance $ 1,377,088 $ 1,684,741 $ 1,599,050 $ 1,248,614 $ 850,117 $ 300,812 Revenues
Water Rate Revenue $ 5,586,504 $ 5,642,469 $ 5,686,704 $ 5,743,894 $ 5,791,108 $ 5,846,162 Adjusted Water Rate Revenue -$ -$ -$ $ - -$ -$
Other Operating Revenue $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 Non-Operating Revenue $ 50,000 $ 50,250 $ 50,501 $ 50,754 $ 51,008 $ 51,263 Total Revenues $ 5,996,504 $ 6,052,719 $ 6,097,205 $ 6,154,647 $ 6,202,116 $ 6,257,424 Operating Expenses $ 4,738,438 $ 4,940,072 $ 5,149,716 $ 5,358,311 $ 5,558,618 $ 5,768,347 Net Operating Revenues $ 1,258,066 $ 1,112,647 $ 947,489 $ 796,336 $ 643,498 $ 489,077 Current Rate Funded Debt Service $ 195,412 $ 194,338 $ 192,925 $ 194,833 $ 192,802 $ 193,927 New Debt Service -$ -$ -$ $ - -$ -$
Total Rate Funded Debt Service $ 195,412 $ 194,338 $ 192,925 $ 194,833 $ 192,802 $ 193,927 Total Operating and Debt Service $ 4,933,850 $ 5,134,411 $ 5,342,641 $ 5,553,145 $ 5,751,420 $ 5,962,274 Total Operating and Debt Net Revenues $ 1,062,653 $ 918,309 $ 754,564 $ 601,503 $ 450,696 $ 295,150 Capital Expenditure $ 755,000 $ 11,004,000 $ 1,105,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Debt Proceeds Proposed -$ -$ -$ $ - -$ -$
Debt Proceeds New -$ -$ -$ $ - -$ -$
Capacity Fee -$ -$ -$ $ - -$ -$
Grants -$ 10,000,000 $ -$ $ - -$ -$
Cash $ 755,000 $ 1,004,000 $ 1,105,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Net Income $ 307,653 $ (85,691) $ (350,436) $ (398,497) $ (549,304) $ (704,850) Ending Balance $ 1,684,741 $ 1,599,050 $1,248,614 $850,117 $300,812 ($404,038) RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 350 of 520 21 City of San Fernando – 2025 Water and Sewer Rate Study Table 26 shows the proposed water pro forma for the study period with the recommended 5.0 percent revenue adjustments per year. Revenue adjustments will occur in January of each Fiscal Year.

Table 26. Proposed Financial Pro Forma for City of San Fernando Water System, FY 2025 to FY 2030 Rate Increase 5.0% 5.0% 5.0% 5.0% 5.0%
Rate Month Implemented 1-Jan 1-Jan 1-Jan 1-Jan 1-Jan
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Cash Position Opening Balance 1,377,088 $ $ 1,684,741 $ 1,740,112 $ 1,823,287 $ 2,171,855 $ 2,702,972 Revenues
Water Rate Revenue $ 5,586,504 $ 5,642,469 $ 5,686,704 $ 5,743,894 $ 5,791,108 $ 5,846,162 Adjusted Water Rate Revenue -$ 141,062 $ $ 433,611 $ 747,065 $ 1,080,422 $ 1,437,536 Other Operating Revenue $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 Non-Operating Revenue $ 50,000 $ 50,250 $ 50,501 $ 50,754 $ 51,008 $ 51,263 Total Revenues $ 5,996,504 $ 6,193,781 $ 6,530,816 $ 6,901,713 $ 7,282,538 $ 7,694,960 Operating Expenses $ 4,738,438 $ 4,940,072 $ 5,149,716 $ 5,358,311 $ 5,558,618 $ 5,768,347 Net Operating Revenues $ 1,258,066 $ 1,253,709 $ 1,381,100 $ 1,543,401 $ 1,723,920 $ 1,926,613 Current Rate Funded Debt Service 195,412 $ $ 194,338 $ 192,925 $ 194,833 $ 192,802 $ 193,927 New Debt Service -$ -$ -$ $ - -$ -$
Total Debt Service $ 195,412 $ 194,338 $ 192,925 $ 194,833 $ 192,802 $ 193,927 Total Operating and Debt Service $ 4,933,850 $ 5,134,411 $ 5,342,641 $ 5,553,145 $ 5,751,420 $ 5,962,274 Net Revenues $ 1,062,653 $ 1,059,370 $ 1,188,175 $ 1,348,568 $ 1,531,117 $ 1,732,686 Capital Expenditure $ 755,000 $ 11,004,000 $ 1,105,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Debt Proceeds Proposed -$ -$ -$ $ - -$ -$
Debt Proceeds New -$ -$ -$ $ - -$ -$
Capacity Fee -$ -$ -$ $ - -$ -$
Grants -$ 10,000,000 $ -$ $ - -$ -$
Cash $ 755,000 $ 1,004,000 $ 1,105,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Net Income $ 307,653 $ 55,370 $ 83,175 $ 348,568 $ 531,117 $ 732,686 Ending Balance $ 1,684,741 $1,740,112 1,823,287 $ $ 2,171,855 $2,702,972 $3,435,658 RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 351 of 520 22 City of San Fernando – 2025 Water and Sewer Rate Study Revenue Requirements
Table 27 displays the water utility’s revenue requirements for FY 2025. In the rate design section, the proposed revenue adjustments will be applied to the cost of service-based rates which were designed considering the FY 2025 revenues and expenses. The total expense for each year is offset by other operating revenues and non-operating revenues to compute a pure portion of revenue requirements that need to be recovered from customers’ rates. RDN proposes annual revenue adjustments of 5.0 percent in FY 2026 through FY 2030 to reach the financial goals set by the City.

Table 27. Revenue Requirements for City of San Fernando Water Utility, FY 2025 Revenue Requirements FY 2025
O&M Expenses $4,738,438
Debt Service $195,412
Capital Expenditures $755,000
Other Operating Revenue ($360,000)
Non-Operating Revenue ($50,000)
Net Balance From Operations $307,653
Rate Revenue Requirement $5,586,504
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October 6, 2025 CC Special & Regular Mtg Page 352 of 520 23 City of San Fernando – 2025 Water and Sewer Rate Study

3.2 Cost of Service Analysis
The purpose of a Cost of Service (COS) analysis is to allocate costs among customers commensurate with their service requirements. RDN employed the “base-extra capacity” cost-of-service method promulgated in AWWA’s M1, whereby costs are first allocated to individual functions, which are typical industry standard activities, then the costs of each function are distributed to appropriate cost causative components, which are defined by the cost driving elements. The results of the COS form a reasonable, equitable basis for designing rates. Figure 7 displays a typical process for the COS analysis.

Figure 7. A Typical Flow for Cost of Service Analysis Process Functionalization of Costs
Operating and capital costs are functionalized based on operating categories used in the City’s budget and input from City staff with expertise on the system and utility industry knowledge. The functionalization of capital expenses is based on total water asset values, which represents a better overall estimate of systemwide needs versus just one year of capital expenditure. The functions of the water system for both operating and capital expenses include:
• Water Supply – costs associated with water procurement and purchases • Groundwater – costs associated with groundwater procurement • Storage – costs associated with water storage for distribution • Transmission and Distribution – costs associated with transmitting and distributing water to customers
• Pumping – costs associated with general pumping and energy use • Treatment – costs associated with treating water
• Customer – costs associated with customer service and billing related tasks Functionalization
The revenue requirement is
assigned to various industry
standard activities on a line-by -
line basis.

Allocation to Cost Causative
Components
The functional categories are
allocated to base, Max Day
Demand, Peak Hourly Demand,
customer billing and meter costs.

Reallocation to Customers via
Rates
Each cost component is tied to
fixed and volumetric rate
components.

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October 6, 2025 CC Special & Regular Mtg Page 353 of 520 24 City of San Fernando – 2025 Water and Sewer Rate Study • Meters – costs associated with the reading and maintenance of meters • Hydrants – costs associated with maintaining public fire hydrants • Administrative and General – costs associated with administrative and general functions Costs and assets were functionalized based on industry standard budget determinations and input from staff. Table 28 shows the amount and percentage of test year operating expenses allocated to each function. Table 29 shows the amount and percentage of the City’s fixed assets allocated to each function.

Total assets were used as a proxy for the allocation of non-operating expenses because they represent the long-term investment in the system made by the City. A single year of non-operating expenses typically does not reflect an adequate ratio of overall system investments.

Table 28. Percentage of Operating Costs Allocated to Standard Functions Category Allocation Percent
Total O&M $4,738,438 100.0%
Groundwater $966,777 20.4%
Transmission and Distribution $571,505 12.1%
Pumping $300,000 6.3%
Treatment $200,000 4.2%
Customer $399,952 8.4%
Administrative and General $2,001,015 42.2%
O&M Expense
Table 29. Percentage of Non-operating Costs Allocated to Standard Functions Category Allocation Percent
Total Assets $17,980,156 100.0%
Water Supply $575,511 3.2%
Groundwater $218,233 1.2%
Storage $10,235,481 56.9%
Transmission and Distribution $2,597,076 14.4%
Pumping $1,436,674 8.0%
Treatment $154,568 0.9%
Meters $195,000 1.1%
Hydrants $174,014 1.0%
Administrative and General $2,393,600 13.3%
Non-Operating Expense
A COS analysis considers both the average quantity of water consumed (base costs) and the peak rate at which it is consumed (peaking or capacity costs as identified by maximum demands compared to base demands). Peaking costs are costs that are incurred during peak times of consumption. There are additional costs associated with designing, constructing, operating, and maintaining facilities to meet peak demands. All current and future water facilities, including water mains, pump stations, reservoirs, RES. NO. 8412
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October 6, 2025 CC Special & Regular Mtg Page 354 of 520 25 City of San Fernando – 2025 Water and Sewer Rate Study wells, and treatment plants, are designed and constructed to meet peak demands. If deficiencies are found, the existing facilities get upsized, or a secondary line or pump is installed to meet the peaking demands. These peak demand costs should be allocated to those customers whose potential use patterns generate additional costs for the utility. In other words, not all customers share the same responsibility for peaking related costs. For the system to provide adequate service to its customers at all times, it must be capable of meeting not only the annual volume requirements, but also the peak demand - the maximum rate at which water is consumed. The percent of peak delivery over an average day was determined by using actual customer billing records. Table 30 shows actual customer water use by billing period. Table 31 shows base (average) and peak (highest months) use divided by the number of days included in the period. The October billing period includes 61 days, so to calculate the daily use during the peak billing period, the total use in that period is divided by the increment.

Table 30. System-Wide Water Use by Billing Period
Category August October December February April June
Water Use 167,416 213,788 185,074 147,212 134,159 137,746 Table 31. Water Use Divided by Billing Days
Category Base Peak
Water Use 985,397 213,788
Days 365 61
Daily Use 2,700 3,505
Table 32 shows the systemwide peaking factors based on customer use patterns as described.

Table 32. System-Wide Peak Delivery Factor
Factor Base Peak
Use 2,700 3,505
Base Delivery 1.00 100.0% 0.0%
Peak Delivery 1.30 77.0% 23.0%
The cost causative components include:
• Source of Supply – water purchase costs, groundwater procurement, pumping costs, etc. • Base Delivery – delivering water to customers under average demand conditions • Peak Delivery– the costs of delivering water to customers on the hour with the highest demand on highest day
• Meters – the costs of servicing and reading meters
• Customer Service – billing and other customer service-related costs RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 355 of 520 26 City of San Fernando – 2025 Water and Sewer Rate Study Water supply costs are allocated 100 percent to the Supply component as they relate to purchasing water from other agencies as well as groundwater. Storage, Transmission and Distribution, Treatment, and Pumping costs are proportionally allocated between Base and Peak delivery based on water demand patterns since all infrastructure is constructed to meet regular and peak demand. Administrative and general costs are allocated to cost components based on the percentage of the functions allocated to the other cost categories excluding source of supply costs.

Table 33 through Table 36 show the percent and total value of functionalized operating costs and assets allocated to the cost causative components. Meter and customer service costs were allocated directly to their respective component.

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October 6, 2025 CC Special & Regular Mtg Page 356 of 520 27 City of San Fernando – 2025 Water and Sewer Rate Study Table 33. Percent of Operating Function Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply
Base
Delivery
Peak
Delivery Meters Customer Service
Groundwater $966,777 100.0% 0.0% 0.0% 0.0% 0.0%
Transmission and Distribution $571,505 0.0% 77.0% 23.0% 0.0% 0.0% Pumping $300,000 0.0% 77.0% 23.0% 0.0% 0.0%
Treatment $200,000 0.0% 77.0% 23.0% 0.0% 0.0%
Customer $399,952 0.0% 0.0% 0.0% 45.0% 55.0%
Administrative and General $2,001,015 0.0% 32.1% 9.6% 40.0% 18.3% O&M Expense
Table 34. Total of Operating Functional Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply
Base
Delivery
Peak
Delivery Meters Customer Service
Groundwater $966,777 $966,777 $0 $0 $0 $0
Transmission and Distribution $571,505 $0 $440,234 $131,270 $0 $0 Pumping $300,000 $0 $231,092 $68,908 $0 $0
Treatment $200,000 $0 $154,062 $45,938 $0 $0
Customer $399,952 $0 $0 $0 $179,978 $219,974
Administrative and General $2,001,015 $0 $642,709 $191,645 $799,591 $367,071 Percent of Total 100.0% 20.4% 31.0% 9.2% 27.0% 12.4%
O&M Expense
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 357 of 520 28 City of San Fernando – 2025 Water and Sewer Rate Study Table 35. Percent of Non-Operating Function Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply
Base
Delivery
Peak
Delivery Meters Customer Service
Water Supply $575,511 100.0% 0.0% 0.0% 0.0% 0.0%
Groundwater $218,233 100.0% 0.0% 0.0% 0.0% 0.0%
Storage $10,235,481 0.0% 77.0% 23.0% 0.0% 0.0%
Transmission and Distribution $2,597,076 0.0% 77.0% 23.0% 0.0% 0.0% Pumping $1,436,674 0.0% 77.0% 23.0% 0.0% 0.0%
Treatment $154,568 0.0% 77.0% 23.0% 0.0% 0.0%
Meters $195,000 0.0% 0.0% 0.0% 100.0% 0.0%
Hydrants $174,014 0.0% 0.0% 100.0% 0.0% 0.0%
Administrative and General $2,393,600 0.0% 74.7% 23.7% 1.6% 0.0% Non-Operating Expense
Table 36. Total of Non-Operating Functional Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply
Base
Delivery
Peak
Delivery Meters Customer Service
Water Supply $575,511 $575,511 $0 $0 $0 $0
Groundwater $218,233 $218,233 $0 $0 $0 $0
Storage $10,235,481 $0 $7,884,468 $2,351,013 $0 $0
Transmission and Distribution $2,597,076 $0 $2,000,547 $596,529 $0 $0 Pumping $1,436,674 $0 $1,106,681 $329,993 $0 $0
Treatment $154,568 $0 $119,065 $35,503 $0 $0
Meters $195,000 $0 $0 $0 $195,000 $0
Hydrants $174,014 $0 $0 $174,014 $0 $0
Administrative and General $2,393,600 $0 $1,788,019 $567,309 $38,272 $0 Percent of Total 100.0% 4.4% 71.7% 22.5% 1.3% 0.0%
Non-Operating Expense
The non-operating expenses for the test year are made up of debt service payments and capital expenditures totaling approximately $950,000. Those costs are distributed to the cost components based on the final percentages shown in Table 36, above, which are based on the total asset values of water assets owned by the City. Water asset values represent the long-term investment in the City’s water system and are proxy value for how a single year of non-operating expenses should be allocated. Asset values do not significantly fluctuate RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 358 of 520 29 City of San Fernando – 2025 Water and Sewer Rate Study year over year as annual capital expenditures do, which ensures that cost categories are accurately represented. Operating allocations are based on the projected test year expenses and the total for each cost component reflect the percentages in Table 34. Table 37 shows the projected test year expenses allocated to each cost component based on the percentages in Table 34 and Table 36.

Table 37. Operating and Non-Operating Cost Allocation to Cost Components Cost Component Operating
Percentage
Operating
Costs
Non-Operating
Percentage
Non-Operating
Costs
Total 100.0% $4,738,438 100.0% $950,412
Source of Supply 20.4% $966,777 4.4% $41,956
Base Delivery 31.0% $1,468,097 71.7% $681,816
Peak Delivery 9.2% $437,761 22.5% $214,309
Meters 27.0% $1,278,758 1.3% $12,331
Customer Service 12.4% $587,045 0.0% $0
Table 38 shows the cost allocation by cost causative components under the proposed financial plan before adjustments. Revenue offsets made up of non-operating revenues for FY 2025 shown in Table 19 will be used to offset purchased water costs in the rate design section.

Other operating revenues are allocated to each cost component based on the overall cost allocation percentages shown in the “percent of total” row.

Table 38. Rate Revenue Requirements for Test Year, FY 2025 Cost Allocation Summary Total Source of
Supply Base Delivery Peak Delivery Meters Customer Service O&M Revenue Requirements $4,738,438 $966,777 $1,468,097 $437,761 $1,278,758 $587,045 Non-Operating Revenue Requirements $950,412 $41,956 $681,816 $214,309 $12,331 $0 Total $5,688,850 $1,008,733 $2,149,913 $652,070 $1,291,089 $587,045 Percent of Total 17.7% 37.8% 11.5% 22.7% 10.3%
Table 39 shows the total cost allocation by cost category that will be used to allocate costs to each customer. Other operating revenue and net balances are applied based on the overall percentages allocated to each cost category in the percent of total line. Non-operating revenues are comprised of interest on investments and are applied directly to offset the cost of variable rates.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 359 of 520 30 City of San Fernando – 2025 Water and Sewer Rate Study Table 39. Final Cost of Service Allocations with all Adjustments Cost Allocation Summary Total Source of
Supply Base Delivery Peak Delivery Meters Customer Service Revenue
Offset
O&M Revenue Requirements $4,738,438 $966,777 $1,468,097 $437,761 $1,278,758 $587,045 $0 Non-Operating Revenue Requirements $950,412 $41,956 $681,816 $214,309 $12,331 $0 $0 Total $5,688,850 $1,008,733 $2,149,913 $652,070 $1,291,089 $587,045 $0 Percent of Total 17.7% 37.8% 11.5% 22.7% 10.3% 0.0%
Other Operating Revenue ($360,000) ($63,834) ($136,050) ($41,264) ($81,702) ($37,149) $0 Non-Operating Revenue ($50,000) $0 $0 $0 $0 $0 ($50,000) Net Balance From Operations $307,653 $54,552 $116,267 $35,264 $69,822 $31,747 $0 Rate Revenue Requirement $5,586,504 $999,451 $2,130,130 $646,070 $1,279,209 $581,643 ($50,000)

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 360 of 520 31 City of San Fernando – 2025 Water and Sewer Rate Study Allocation to Customer Classes
All customers are billed based on their meter size and water use level. The total revenue requirements reflect the final cost allocation in Table 39. These totals will be applied to customers based on the corresponding number of units allocated to that customer.

Allocation to Units
The final step of the COS analysis is to allocate the cost causative components back to the customers.

In order to perform this, unit values were determined for each cost component. Table 41 shows the number of systemwide units under each category. Equivalent meters are determined by multiplying the total meters by their equivalent meter value. Table 40 shows the meters currently connected to the water system and the number of equivalent meters based on AWWA meter equivalency factors.

Table 40. Total Equivalent Meters Used for Cost Allocation Meter Size Number of
Meters
Equivalance
Factor
Total
Equivalent
Meters
3/4" 4,258 1.00 4,258
1" 632 2.50 1,580
1 1/2" 176 5.00 880
2" 165 8.00 1,320
3" 17.50 17 298
4" 31.50 8 252
6" 80.00 3 240
8" 140.00 - -
10" 210.00 1 210
Total 5,260 9,038
The number of bills in one year (the number of accounts multiplied by 6) serves as the basis for distributing billing and customer service costs associated with customer billing and collection, and other customer services costs. The number of equivalent meters is used to distribute meter related service costs. Table 41 shows the sum of systemwide units used to derive unit costs for each cost category.

Table 41. Cost of Service Units
Unit Count of
Units
Bills 31,560
Equivalent Meters 9,038
Water Use 985,397
Table 42 shows the total cost allocation by cost component divided by the corresponding unit values to develop a unit cost for each.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 361 of 520 32 City of San Fernando – 2025 Water and Sewer Rate Study Table 42. Rate Revenue Requirements Divided by the Corresponding Units Total Source of
Supply
Base
Delivery
Peak
Delivery
Rate Revenue Requirement $5,586,504 $999,451 $2,130,130 $646,070 Units 985,397 985,397 9,038
Unit Cost $1.01 $2.16 $71.49
Meters Customer
Service
Revenue
Offset
Rate Revenue Requirement $1,279,209 $581,643 ($50,000)
Units 9,038 31,560 985,397
Unit Cost $141.54 $18.43 ($0.05)
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 362 of 520 33 City of San Fernando – 2025 Water and Sewer Rate Study

3.3 Water Rate Design
RDN proposes the following adjustments to customer water rate structures:
• Adjusting rates annually by the recommended revenue adjustments of 5.0 percent per year • Introducing rates for larger meters which reflect the increased capacity of those meters • Introducing a passthrough rate for when the City must purchase water from the Metropolitan Water District
The water rates have two components: 1) a fixed bi-monthly service charge and 2) volumetric rates.

Customers must pay the fixed charge regardless of the water use. In addition, the customers pay volumetric rates based on the volume of water use.

1. Fixed bi-monthly service charge: the rates are established based on the size of the meter at the property receiving water service and are calculated to recover a portion of the City’s fixed costs, such as water facilities repairs and replacements, the peak capacity of that meter, meter reading, and customer service.

2. Variable rates: the rates are calculated based on the cost of water supplies, the cost of managing the City’s water resources at regular levels and distributing water throughout the system to customers. The remaining fixed costs that are not recovered via fixed charges are also recovered from variable charges. The rates are billed per hundred cubic feet.

Together, the two components (fixed and variable) are calculated to recover the proportionate cost of providing water service attributable to each customer. Table 43 shows the costs which are allocated to either fixed or variable rates. The revenue offset is made up of non-operating revenues which will be collected in the test year and includes interest income.

Table 43. Allocation of Fixed and Variable Costs8
Expense Category Fixed Variable
Source of Supply $999,451
Base Delivery $2,130,130
Peak Delivery $646,070
Meters $1,279,209
Customer Service $581,643
Revenue Offset -$50,000
8 Revenue offsets are the direct use of non-operating revenues shown in table 19 to offset variable rates RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 363 of 520 34 City of San Fernando – 2025 Water and Sewer Rate Study Bi-Monthly Fixed Charge
All meter costs are divided by the number of equivalent meters using the AWWA ratio discussed in the Key Assumptions section to compute the unit cost for each cost component. Customer service costs are simply divided by the number of bills since the service requirements of this cost type are the same regardless of the meter size installed on a property. Table 44 shows the total costs allocated to each cost category, the number of units for the category, and the cost for a year and a bi-monthly period of service for each cost unit. The resulting bi-monthly unit costs are used to calculate the fixed customer rates.

Table 44. Fixed Cost Components Divided by Number of Units Cost Units Cost per Unit Cost per BiMonthly Period
Meters $1,279,209 9,038 $141.54 $23.59
Peak Delivery $646,070 9,038 $71.49 $11.91
Service $581,643 5,260 $110.58 $18.43
Table 45 shows the bi-monthly fixed charge calculation by meter size for water service customer connections.

Table 45. Bi-Monthly Water Service Fixed Charge Calculation9 Meter
Size
Meter
Charge
Peak
Delivery
Meter
Ratio
Total Meter
& Peak
Customer
Service
Bi-Monthly
Rate
3/4" $23.59 + $11.91 x 1.00 = $35.51 + $18.43 = $53.94
1" $23.59 + $11.91 x 2.50 = $88.76 + $18.43 = $107.19
1 1/2" $23.59 + $11.91 x 5.00 = $177.53 + $18.43 = $195.96 2" $23.59 + $11.91 x 8.00 = $284.04 + $18.43 = $302.47
3" $23.59 + $11.91 x 17.50 = $621.34 + $18.43 = $639.77 4" $23.59 + $11.91 x 31.50 = $1,118.42 + $18.43 = $1,136.85 6" $23.59 + $11.91 x 80.00 = $2,840.43 + $18.43 = $2,858.86 8" $23.59 + $11.91 x 140.00 = $4,970.75 + $18.43 = $4,989.18 10" $23.59 + $11.91 x 210.00 = $7,456.13 + $18.43 = $7,474.56 The proposed bi-monthly fixed charge before revenue adjustments for the base equivalent meter (3/4 inch) is $53.94.

The proposed five-year bi-monthly fixed charges with revenue adjustments applied for all water customers are shown in Table 46. FY 2026 rates are based on the cost of service rates times the revenue adjustment.
9 Note that some calculations may be impacted by rounding to two decimal points RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 364 of 520 35 City of San Fernando – 2025 Water and Sewer Rate Study Table 46. Proposed 5-year Fixed Charge Schedule
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Proposed Adjustment 5.0% 5.0% 5.0% 5.0% 5.0%
Meter Size FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
3/4" $56.63 $59.46 $62.44 $65.56 $68.84
1" $112.55 $118.18 $124.09 $130.29 $136.81
1 1/2" $205.75 $216.04 $226.84 $238.19 $250.10
2" $317.60 $333.48 $350.15 $367.66 $386.04
3" $671.76 $705.35 $740.62 $777.65 $816.53
4" $1,193.69 $1,253.38 $1,316.04 $1,381.85 $1,450.94
6" $3,001.80 $3,151.89 $3,309.49 $3,474.96 $3,648.71
8" $5,238.64 $5,500.57 $5,775.60 $6,064.38 $6,367.60
10" $7,848.29 $8,240.70 $8,652.74 $9,085.37 $9,539.64
Fixed Charges
Variable Water Rates
Variable rates are designed based on variable costs such as water supply, treatment, and base delivery costs. The current rate structure was maintained to mitigate rate impacts. Variable rates are made up of a number of cost components, all derived based on actual customer use data: Water Supply and Base Costs. Water supply costs are offset by the City’s non-operating revenues.

Water Supply
The City’s primary water source is local groundwater, with purchased water supplementing customer demand during droughts or periods of excess use. Because the City bills customers a flat rate for all use, differences in supply costs between the two sources were blended when designing variable rates. The unit cost for water supply is developed by dividing the total supply cost by the total water usage, as shown in Table 47.

Base Costs
Base delivery costs are divided by total water use to determine the unit cost shown in Table 47. The base unit cost is applied to all water use.

Revenue Offset
Revenue offsets are divided by total water use to determine the unit cost shown in Table 47. All customers benefit from the non-operating revenue for all usage.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 365 of 520 36 City of San Fernando – 2025 Water and Sewer Rate Study Table 47. Variable Rate Costs and Components
All Customers Water
Use
Source of
Supply
Unit $
per hcf
Base
Delivery
Unit $
per hcf
Revenue
Offset
Unit $
per hcf
All Use 985,397 $999,451 $1.01 $2,130,130 $2.16 -$50,000 -$0.05 Variable Rate Components
Table 48 shows the calculation used to determine the variable rates. Supply costs are added to base costs to calculate the variable rates. Rates are then reduced by revenue offsets, which were set aside in the cost of service analysis.

Table 48. Variable Rate Calculation
All Customers Supply
Cost
Base
Cost
Revenue
Offset
Variable
Rate
All Use $1.01 + $2.16 - $0.05 = $3.13
The rates will be escalated by the revenue adjustments and the five-year rate schedule is shown in Table

49. Each adjustment will occur in January, midway through the fiscal year.

Table 49. Proposed 5-Year Variable Rate Schedule
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Proposed Adjustment 5.0% 5.0% 5.0% 5.0% 5.0%
All Customers FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
All Use $3.28 $3.45 $3.62 $3.80 $3.99
Variable Charges
If the City must purchase water from the MWD, additional costs will apply per unit of water. RDN recommends that the City institute a passthrough charge to account for the additional cost of MWD water that the City cannot control. The MWD has a proposed rate of $984 per acre foot10 for untreated water for FY 2026, which equals $2.26 per hcf. Table 50 shows the calculation used to determine the variable rates for MWD water. Supply costs and the MWD rate are added to base costs to calculate the variable rates. Rates are then reduced by revenue offsets, which were set aside in the cost of service analysis.

Also note that other supply costs are reduced to reflect less expenditures on groundwater supplies when MWD water is used. Any adjustments per Govt. Code Section 53755(a), must be preceded by not less than 30 days notice before the effective date of the adjustment. 10 MWD 2025. https://www.mwdh2o.com/budget-finance/
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 366 of 520 37 City of San Fernando – 2025 Water and Sewer Rate Study Table 50. MWD Variable Rate Calculation
Supply
Cost
Base
Cost
MWD
Rate
Revenue
Offset
Variable
Rate
$0.48 + $2.16 + $2.26 - $0.05 = $4.85
The proposed adjustments are applied to future years to account for increases in MWD source water.

Table 51 shows the proposed variable rates if the City must rely on MWD Water.

Table 51. Proposed 5-Year Variable MWD Rate Schedule
All Customers FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
MWD Water $4.98 $5.23 $5.49 $5.76 $6.05
Variable Charges

3.4 Bill Impact Analysis
This analysis compares customers’ bills under current and proposed rates. Figure 8 shows the dollar change in the bill based on ¾” meter customers use at selected usage points. The City’s average ¾” customer uses 21 hcf of water bi-monthly. Additionally, the 90th percentile of use for a ¾” customer is 37 hcf per billing period.

Figure 8. Customer Impact by Usage for ¾” Meter
$90.04
$121.04
$136.54
$170.64
$92.73
$125.54
$141.95
$178.05
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
$200.00
11 hcf (25 percentile) 21 hcf (average) 26 hcf (75 percentile) 37 hcf (90 percentile) Current Proposed
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 367 of 520 38 City of San Fernando – 2025 Water and Sewer Rate Study

SEWER UTILITY

4.1 Financial Plan
RDN built a 10-year financial model for the City of San Fernando’s sewer system to meet the system’s long-term financial goals. The detailed rate analysis was performed for the first five years.

Revenues
RDN conducted a revenue analysis using the current sewer rates. The City currently collects fixed revenues from all customers and variable revenue from non-residential customers. Fixed revenue forecasts are based on the customer growth assumptions described in the Methodology Section. Table 52 shows the projected number of accounts connections for FY 2025 to FY 2030.

Table 52. Sewer Customer Growth, FY 2025 to FY 2030
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Residential (Flat Rate) 3,781 3,744 3,819 3,857 3,895 3,934 Residential (Multi Unit) 2,081 2,064 2,099 2,116 2,134 2,151 Commercial Group II 294 297 300 303 306 309
Commercial Group III 54 55 56 57 58 59
Commercial Group IV 80 81 82 83 84 85
Commercial Group V 80 81 82 83 84 85
Commercial Industrial 165 167 169 171 173 175
Commercial Schools 10 10 10 10 10 10
Commercial Higher Education 6 6 6 6 6 6
Commercial City Property 27 27 27 27 27 27
Total 6,586 6,524 6,650 6,713 6,777 6,841
The revenue analysis also includes other operating and non-operating revenues such as waste permit fee revenue and miscellaneous revenue. These revenues are used to offset the revenue requirements that need to be recovered from customers’ rates. This projection was created under the status quo rates and does not include proposed revenue adjustments.

The system’s total revenue for the study period is estimated to be approximately $4.0 to $4.2 million annually under the current rates. Table 53 shows the projected sewer system revenues by category for the study period (FY 2025 – FY 2030) without any revenue adjustments. Projections are based on customer growth projections as well as other operating and non-operating revenue estimates provided by City staff.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 368 of 520 39 City of San Fernando – 2025 Water and Sewer Rate Study Table 53. Sewer System Revenue Forecast, FY 2025 to FY 2030 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Revenue from Rates
Fixed Revenue $3,930,064 $3,967,874 $4,008,023 $4,048,172 $4,088,321 $4,128,979 Rate Revenue Total $3,930,064 $3,967,874 $4,008,023 $4,048,172 $4,088,321 $4,128,979 Other Operating Revenues $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 Non-operating Revenues $0 $0 $0 $0 $0 $0
Total $4,005,064 $4,042,874 $4,083,023 $4,123,172 $4,163,321 $4,203,979 Operating and Maintenance (O&M) Expense
The itemized O&M expenses were carefully reviewed by the City and forecast for the study period using escalation factors discussed in the Key Assumptions section. Table 54 shows the City’s projected O&M expenses for the sewer utility during the study period. O&M Expenses are expected to increase by 3.6 percent on average annually.

Table 54. Sewer System O&M Expense Forecast, FY 2025 to FY 2030 Expense Category FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Sewer Attorney $1,500 $1,548 $1,598 $1,649 $1,701 $1,756 Sewer Operating and Maintenance $3,455,536 $3,582,974 $3,715,000 $3,848,281 $3,980,165 $4,117,319 Total Operating $3,457,036 $3,584,522 $3,716,598 $3,849,930 $3,981,867 $4,119,075 Other Obligations
Other obligations included in the financial plan are capital improvement projects funded by PAYGO (Pay As You Go), debt service obligations, and reserve contributions made from rates.

Capital Improvement Projects
The City plans to spend an average of $0.6 million a year on sewer rate funded capital expenditures during the rate setting period. Table 55 shows the capital expenditure by expenditure type. The City plans to use customer rates to accomplish the proposed capital plan, where capacity fees and grants are not available. Figure 9 graphically shows the rate study capital plan by funding source, only PAYGO funded expenditure will impact customer rates.

Table 55. Rate Study Sewer CIP Expenses by Expense Type, FY 2025 to FY 2030 CIP Funding Source FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Rate Funded $942,121 $276,900 $341,520 $271,860 $1,000,000 $1,000,000 Capacity Fee $0 $0 $0 $0 $0 $0
Grant Funded $0 $0 $0 $0 $0 $0
Total CIP $942,121 $276,900 $341,520 $271,860 $1,000,000 $1,000,000 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 369 of 520 40 City of San Fernando – 2025 Water and Sewer Rate Study Figure 9. Rate Study Sewer CIP Expenses by Funding Source, FY 2025 to FY 2030 $0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Millions
Rate Funded Capacity Fee (Developer) Grant Funded
Debt Service and Coverage Ratios
The Sewer utility received an internal loan in 2021 to fund pension obligations, “2021B Pension Obligation Bond.” Payments are made annually; however, these debt obligations not subject to debt service coverage requirements. Table 56 shows the Sewer utility’s annual debt payments used in this study.

Table 56. Rate Study Debt Service Expenses, FY 2025 to FY 2030 Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Principal $41,850 $41,850 $41,850 $43,200 $43,200 $46,440 Interest $30,426 $30,029 $29,506 $28,862 $28,111 $25,287 Total Debt Service $72,276 $71,879 $71,356 $72,062 $71,311 $71,727 Reserves
The City must maintain an appropriate reserve balance to ensure the day-to-day operation will continue during emergencies and guarantee the future stability of the system. The City’s financial goal is to build an appropriate level of cash reserves for each reserve fund included in the financial plan of this Study.

The reserve target for the sewer utility is described below:
• Stabilization and Contingency Funds: three months of operating expenses • Infrastructure Replacement Fund: sufficient to provide funding for infrastructure replacement The reserve target at the end of the study period reaches $1.8 million. Table 57 shows the City’s reserve targets for FY 2025 through FY 2030 based on the current reserve policy. Figure 10 displays the resulting RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 370 of 520 41 City of San Fernando – 2025 Water and Sewer Rate Study cash balances versus the reserve target under the current rates. Reserve targets based on reserve policy shown in Table 16 and operating and capital totals shown in Tables 54 and 55, respectively.

Table 57. Sewer Reserve Target, FY 2025 to FY 2030
Reserve Fund FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Stabilization and Contigency Funds $864,259 $896,131 $929,149 $962,483 $995,467 $1,029,769 Infrastructure Replacement Fund $802,946 $802,946 $802,946 $802,946 $802,946 $802,946 Total Reserve Target $1,667,205 $1,699,076 $1,732,095 $1,765,428 $1,798,412 $1,832,714 Figure 10. Sewer Cash Balances and Reserve Target With Current Rates, FY 2025 to FY 2030 $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Millions
Ending Balance Reserve Target
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 371 of 520 42 City of San Fernando – 2025 Water and Sewer Rate Study Financial Plan
Based on the projected total revenue and necessary costs to be recovered during the study period, RDN built a financial plan that will generate sufficient revenues for the day-to-day operation and annual PAYGO and make appropriate contributions to reserves. The City currently has a projected ending cash balance of $3.0 million in FY 2025. Table 58 shows the status quo sewer pro forma with no revenue adjustments and the resulting ending balances based on the revenues and expenses outlined in this section.

Table 58. Status Quo Financial Pro Forma for City of San Fernando Sewer System, FY 2025 to FY 2030
Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Rate Month Implemented
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Cash Position Opening Balance 3,502,633 $ $ 3,036,265 $ 3,145,838 $ 3,099,388 $ 3,028,708 $ 2,138,852 Revenues
Sewer Rate Revenue $ 3,930,064 $ 3,967,874 $ 4,008,023 $ 4,048,172 $ 4,088,321 $ 4,128,979 Adjusted Sewer Rate Revenue -$ -$ -$ -$ -$ -$
Other Operating Revenue $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 Non-Operating Revenue -$ -$ -$ -$ -$ -$
Total Revenues $ 4,005,064 $ 4,042,874 $ 4,083,023 $ 4,123,172 $ 4,163,321 $ 4,203,979 Operating Expenses $ 3,457,036 $ 3,584,522 $ 3,716,598 $ 3,849,930 $ 3,981,867 $ 4,119,075 Net Operating Revenue $ 548,028 $ 458,352 $ 366,425 $ 273,242 $ 181,455 $ 84,905 Current Debt Service $ 72,276 $ 71,879 $ 71,356 $ 72,062 $ 71,311 $ 71,727 Proposed Debt Service -$ -$ -$ -$ -$ -$
Total Operating and Debt Service $ 3,529,312 $ 3,656,401 $ 3,787,954 $ 3,921,992 $ 4,053,177 $ 4,190,801 Net Revenues Before CIP $ 475,753 $ 386,474 $ 295,069 $ 201,181 $ 110,144 $ 13,178 Capital Expenditure $ 942,121 $ 276,900 $ 341,520 $ 271,860 $ 1,000,000 $ 1,000,000 Debt -$ -$ -$ -$ -$ -$
Debt New -$ -$ -$ -$ -$ -$
Capacity Fee -$ -$ -$ -$ -$ -$
Grants -$ -$ -$ -$ -$ -$
Cash $ 942,121 $ 276,900 $ 341,520 $ 271,860 $ 1,000,000 $ 1,000,000 Net Income $ (466,368) $ 109,574 $ (46,451) $ (70,679) $ (889,856) $ (986,822) Ending Balance $ 3,036,265 $ 3,145,838 $ 3,099,388 $ 3,028,708 $ 2,138,852 $ 1,152,030 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 372 of 520 43 City of San Fernando – 2025 Water and Sewer Rate Study Table 59 shows the proposed sewer pro forma for the study period with the recommended revenue adjustments per year. All revenue adjustments will occur in January of the Fiscal Year.

Table 59. Proposed Financial Pro Forma for City of San Fernando Sewer System, FY 2025 to FY 2030 Rate Increase 3.0% 3.0% 3.0% 3.0% 3.0%
Rate Month Implemented 1-Jan 1-Jan 1-Jan 1-Jan 1-Jan
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Cash Position Opening Balance 3,502,633 $ $ 3,036,265 $ 3,205,356 $ 3,341,070 $ 3,581,345 $ 3,137,599 Revenues
Sewer Rate Revenue $ 3,930,064 $ 3,967,874 $ 4,008,023 $ 4,048,172 $ 4,088,321 $ 4,128,979 Adjusted Sewer Rate Revenue -$ 59,518 $ $ 182,165 $ 310,954 $ 446,109 $ 587,931 Other Operating Revenue $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 Non-Operating Revenue -$ -$ -$ -$ -$ -$
Total Revenues $ 4,005,064 $ 4,102,392 $ 4,265,188 $ 4,434,127 $ 4,609,430 $ 4,791,911 Operating Expenses $ 3,457,036 $ 3,584,522 $ 3,716,598 $ 3,849,930 $ 3,981,867 $ 4,119,075 Net Operating Revenue $ 548,028 $ 517,870 $ 548,590 $ 584,197 $ 627,564 $ 672,836 Current Debt Service $ 72,276 $ 71,879 $ 71,356 $ 72,062 $ 71,311 $ 71,727 Proposed Debt Service -$ -$ -$ -$ -$ -$
Total Operating and Debt Service $ 3,529,312 $ 3,656,401 $ 3,787,954 $ 3,921,992 $ 4,053,177 $ 4,190,801 Net Revenues Before CIP $ 475,753 $ 445,992 $ 477,234 $ 512,135 $ 556,253 $ 601,109 Capital Expenditure $ 942,121 $ 276,900 $ 341,520 $ 271,860 $ 1,000,000 $ 1,000,000 Debt Proceeds Proposed -$ -$ -$ -$ -$ -$
Debt Proceeds New -$ -$ -$ -$ -$ -$
Capacity Fee -$ -$ -$ -$ -$ -$
Grants -$ -$ -$ -$ -$ -$
Cash $ 942,121 $ 276,900 $ 341,520 $ 271,860 $ 1,000,000 $ 1,000,000 Net Income $ (466,368) $ 169,092 $ 135,714 $ 240,275 $ (443,747) $ (398,891) Ending Balance $ 3,036,265 $ 3,205,356 $ 3,341,070 $ 3,581,345 $ 3,137,599 $ 2,738,708 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 373 of 520 44 City of San Fernando – 2025 Water and Sewer Rate Study Revenue Requirements
Table 60 displays the sewer utility’s revenue requirements FY 2025. The total expense for each year is offset by other operating revenues and non-operating revenues to compute a pure portion of revenue requirements that need to be recovered from customers’ rates. RDN proposes annual revenue adjustments of 3.0 percent FY 2026 through FY 2030 to reach the financial goals set by the City.

Table 60. Revenue Requirements for City of San Fernando Sewer Utility, FY 2025 Revenue Requirements FY 2025
Operating Expenses $3,457,036
Debt Service $72,276
Capital Expenditures (PAYGO) $942,121
Total Expenses $4,471,433
Other Operating Revenue ($75,000)
Non-Operating Revenue $0
Net Balance From Operations ($466,368)
Rate Revenue Requirement $3,930,064
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 374 of 520 45 City of San Fernando – 2025 Water and Sewer Rate Study

4.2 Cost of Service Analysis
In the same way as the sewer system’s Cost of Service analysis was performed, a sewer system’s COS analysis also utilizes a three‐step approach to allocate costs proportionally among different customer classes. These steps include 1) functionalization of costs, 2) cost classification, and 3) cost allocation to customers. Provided below is a detailed discussion of the sewer COS analysis conducted for the City, and the specific steps taken for the analysis.

Figure 11. A Typical Flow for Cost of Service Analysis Process Functionalization of Costs
To allocate the cost of service among the different customer classes, costs first must be allocated to the appropriate sewer parameters. The following sections describe the allocation of the operating and capital costs of service to the appropriate parameters of the sewer system.

The total cost of sewer service is analyzed by system function in order to equitably distribute costs of service to the various classes of customers. For this analysis, sewer utility costs of service are developed consistent with the guidelines for allocating costs detailed in the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Sewer Systems.

A cost of service analysis distributes the revenue requirements (costs) to each customer class. After determining the revenue requirements, the next step is to functionalize the O&M costs based on the City’s O&M classification:
• Fixed – costs that do not vary with flow or strength, such as routine system-wide operations and maintenance
• Flow – costs related to conveying wastewater volume
Functionalization
The revenue requirement is
assigned to Cost Components
Allocation to Cost Causative
Components
The functional categories are
allocated to fixed costs and
variable costs.

Reallocation to Customers via
Rates
Each cost component is tied to
fixed and volumetric rate
components.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 375 of 520 46 City of San Fernando – 2025 Water and Sewer Rate Study • BOD – costs associated with the treatment of organic material in the wastewater (Biochemical Oxygen Demand)
• TSS – costs related to removing suspended solids from the wastewater (Total Suspended Solids) • Administrative & General – overhead costs related to management, planning, and administrative functions
The functionalization of costs allows us to better allocate the functionalized costs to the cost causation components. The cost causation components used in this study include:
• Flow-Related costs - are those costs that are dependent upon the amount of sewer flow. An example of flow-related costs would be utility costs associated with operating sewer pumps. • Strength-Related costs - are those costs that are dependent upon the amount of sewer strength.

This component is further broken down into Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS). An example of strength-related costs would be chemical costs associated with treating sewer.
• Service-Related Costs - are those costs that do not change with respect to the amount of sewer flow generated (in hcf) or the strength of the sewer (the amount of organic compounds or suspended solids in sewer). An example of fixed costs would be administrative costs.

Once this process was completed, and the customer classes were identified, the unit cost of these classified costs were calculated and further allocated to different customer classes using the unit of services specific to the class. Table 61 through Table 66 show the steps taken to functionalize and allocate the City’s costs to each customer class.

Table 61. Percent of O&M Functional Categories Allocated11 Category Allocation Percent
Total O&M $3,457,036 100.0%
Fixed $1,228,222 35.5%
Flow $392,700 11.4%
BOD $518,133 15.0%
TSS $572,295 16.6%
Admin and General $745,686 21.6%
O&M Expense
11 City staff provided individual cost allocations for each budget item and system asset based on the standard categories shown
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 376 of 520 47 City of San Fernando – 2025 Water and Sewer Rate Study Table 62. Percent of O&M Functional Categories Allocated to Cost Components Category Flow BOD TSS Fixed
Fixed 0.0% 0.0% 0.0% 100.0%
Flow 100.0% 0.0% 0.0% 0.0%
BOD 0.0% 100.0% 0.0% 0.0%
TSS 0.0% 0.0% 100.0% 0.0%
Admin and General 14.5% 19.1% 21.1% 45.3%
O&M Expense
Table 63. Total of Operating Functional Categories Allocated to Cost Components Category Flow BOD TSS Fixed
Fixed $0 $0 $0 $1,228,222
Flow $392,700 $0 $0 $0
BOD $0 $518,133 $0 $0
TSS $0 $0 $572,295 $0
Admin and General $108,002 $142,499 $157,395 $337,791
O&M Expense
Table 64. Percent of Asset Value Functional Categories Allocated Category Allocation Percent
Total Assets $4,478,085 100.0%
Fixed $0 0.0%
Flow $2,520,433 56.3%
BOD $181,991 4.1%
TSS $181,991 4.1%
Admin and General $1,593,670 35.6%
Asset Values
Table 65. Percent of Non-operating Functional Categories Allocated to Cost Components Category Flow BOD TSS Fixed
Fixed 0.0% 0.0% 0.0% 100.0%
Flow 100.0% 0.0% 0.0% 0.0%
BOD 0.0% 100.0% 0.0% 0.0%
TSS 0.0% 0.0% 100.0% 0.0%
Admin and General 87.4% 6.3% 6.3% 0.0%
Non-Operating Expense
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 377 of 520 48 City of San Fernando – 2025 Water and Sewer Rate Study Table 66. Total of Non-operating Functional Categories Allocated to Cost Components Category Flow BOD TSS Fixed
Fixed $0 $0 $0 $0
Flow $2,520,433 $0 $0 $0
BOD $0 $181,991 $0 $0
TSS $0 $0 $181,991 $0
Admin and General $1,392,567 $100,552 $100,552 $0
Percent of Total 87% 6% 6% 0%
Non-Operating Expense
Table 67 displays the functionalized O&M costs and non-operating costs allocated to cost causative components for the sewer system. The non-operating expenses for the test year are made up of planned PAYGO capital expenditures and debt service payments. Those costs are distributed to the cost components based on the final percentages shown in Table 66, above. Operating allocations are based on the actual projected test year expense and the total for each cost component reflect the percentages in Table 62.

Table 67. Revenue Requirement Cost Allocation by Cost Component Cost Allocation Summary Total Flow BOD TSS Fixed
O&M Revenue Requirements $3,457,036 $500,702 $660,632 $729,690 $1,566,013 Non-Operating Revenue Requirements $1,014,397 $886,391 $64,003 $64,003 $0 $4,471,433 $1,387,093 $724,635 $793,693 $1,566,013

31.0% 16.2% 17.8% 35.0%
Other Operating Revenue ($75,000) ($23,266) ($12,154) ($13,313) ($26,267) Non-Operating Revenue $0 $0 $0 $0 $0
Net Balance From Operations ($466,368) ($144,673) ($75,579) ($82,782) ($163,334) Rate Revenue Requirement $3,930,064 $1,219,154 $636,901 $697,598 $1,376,411 Allocation to Units
In developing equitable rate structures, revenue requirements are allocated to customers commensurate with customer demand and services rendered. First, an overall number of units was determined for each cost component (Table 71). RDN completed a sewer mass balance and water consumption analysis.

Flow for residential customers was based on the lowest water use billing period to best capture the water usage with the largest return to sewer percentage. The minimum use billing period was multiplied by six (bills per year) to estimate the annual sewer flow generated by residential customers. Commercial customer sewer flows were derived using actual water use data as it was assumed 100 percent of commercial water usage returns to sewer. Table 68 shows the total sewer flow per day in million gallons (MG) for fiscal year 2024 as well as annual sewer flow for each customer class.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 378 of 520 49 City of San Fernando – 2025 Water and Sewer Rate Study Table 68. Total Plant Sewer Flows
Customer Class gallons per day (million) Annual Flow (hcf) Residential (Flat Rate) 0.79 385,680
Residential (Multi Unit) 0.29 141,072
Commercial Group II 0.20 98,126
Commercial Group III 0.04 18,835
Commercial Industrial 0.15 73,942
Commercial Group IV 0.09 43,984
Commercial Group V 0.05 26,689
Commercial Schools 0.02 7,812
Commercial Higher Education 0.03 12,849
Commercial City Property 0.00 747
Total 1.66 809,736
As part of the Mass Balance analysis, wastewater strength ratios by customer class were also estimated to allocate costs between customer classes. Table 69 shows the general strength (BOD/TSS) contributions by customer class used to perform the cost of service analysis, displayed in milligrams per liter (mg/L).

Table 69. Strength Factors by Customer Class12
Customer Class BOD TSS
Residential (Flat Rate) 200 200
Residential (Multi Unit) 200 200
Commercial Group II 250 250
Commercial Group III 500 500
Commercial Industrial 310 120
Commercial Group IV 800 800
Commercial Group V 250 250
Commercial Schools 130 100
Commercial Higher Education 130 100
Commercial City Property 200 200
Total proportional strength for each customer class was determined by multiplying the total customer class sewer flow by strength in milligrams per liter. This total was converted to pounds per year by customer class. Table 70 shows the total annual strength contributions by customer class, and the Citywide BOD and TSS contributions. 12 Sewer strength factors by customer class were provided by City staff RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 379 of 520 50 City of San Fernando – 2025 Water and Sewer Rate Study Table 70. Strength Contribution by Customer Class
Customer Class BOD TSS
Residential (Flat Rate) 481,544 481,544
Residential (Multi Unit) 176,137 176,137
Commercial Group II 153,145 153,145
Commercial Group III 58,792 58,792
Commercial Industrial 143,097 55,393
Commercial Group IV 219,667 219,667
Commercial Group V 41,653 41,653
Commercial Schools 6,340 4,877
Commercial Higher Education 10,428 8,021
Commercial City Property 933 933
Total 1,291,736 1,200,161
Table 71 shows the total functional units allocated to each customer class which is used as the unit to divide the total costs allocated to each sewer function.

Table 71. Cost of Service Units of Service
Customer Class Units Flow BOD TSS
Residential (Flat Rate) 3,973 385,680 481,544 481,544
Residential (Multi Unit) 2,064 141,072 176,137 176,137
Commercial Group II 294 98,126 153,145 153,145
Commercial Group III 54 18,835 58,792 58,792
Commercial Industrial 165 73,942 143,097 55,393
Commercial Group IV 80 43,984 219,667 219,667
Commercial Group V 80 26,689 41,653 41,653
Commercial Schools 10 7,812 6,340 4,877
Commercial Higher Education 6 12,849 10,428 8,021
Commercial City Property 27 747 933 933
Total 6,753 809,736 1,291,736 1,200,161
Costs allocated to each cost component were divided by the number of units to determine a unit cost (Table 72).

Table 72. Cost of Service Unit Cost
Flow BOD TSS Fixed
Cost of Service $1,219,154 $636,901 $697,598 $1,376,411 Unit of Service 809,736 1,291,736 1,200,161 6,753
Cost per Unit $1.51 $0.49 $0.58 $203.82
The final step in the cost of service analysis is to allocate costs to each customer class. This is done by multiplying the unit cost for each function, as shown in Table 72, by the corresponding number of service RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 380 of 520 51 City of San Fernando – 2025 Water and Sewer Rate Study units attributed to each customer class (Table 71). Table 73 presents the resulting cost allocations by customer class, which form the basis for the sewer rate calculations discussed in the next section.

Table 73. Cost of Service Allocated to Customer Class
Customer Class Total Flow BOD TSS Fixed
Residential (Flat Rate) $1,907,802 $580,687 $237,429 $279,899 $809,786 Residential (Multi Unit) $822,316 $212,401 $86,846 $102,380 $420,689 Commercial Group II $372,190 $147,740 $75,510 $89,016 $59,924 Commercial Group III $102,525 $28,358 $28,988 $34,173 $11,006 Commercial Industrial $247,712 $111,328 $70,555 $32,197 $33,631 Commercial Group IV $318,519 $66,223 $108,308 $127,682 $16,306 Commercial Group V $101,238 $40,183 $20,538 $24,211 $16,306 Commercial Schools $19,761 $11,762 $3,126 $2,835 $2,038 Commercial Higher Education $30,373 $19,346 $5,142 $4,662 $1,223 Commercial City Property $7,630 $1,125 $460 $542 $5,503

4.3 Rate Design
The proposed sewer rates consist of a fixed charge, which appears on each customer’s bi-monthly bill, and a variable charge that applies to non-residential water use. Residential Flat Rate and Residential Multi-Unit customers will pay only the fixed charge, which incorporates their average bi-monthly water use. In contrast, non-residential customers will be subject to both the fixed charge and a variable charge based on total water use, billed per hundred cubic feet (HCF). Because non-residential customers typically require a higher level of wastewater treatment than residential customers, the additional treatment costs are recovered through the variable charge. This rate structure improves equity both across and within customer classes by aligning charges more closely with each customer’s actual impact on the sewer system.

Each sewer function described in the cost of service analysis corresponds to a separate rate component.

Tables 74, 75, and 76 present the calculations used to determine rate components for each customer class. For customer class, the component cost was divided by the applicable number of service units to determine the corresponding rate. Because BOD and TSS share the same unit of measure, their costs were combined into a single Strength component for rate-setting purposes.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 381 of 520 52 City of San Fernando – 2025 Water and Sewer Rate Study Table 74. Flow Rate Component
Customer Class Flow Cost Flow Units Flow
Component
Residential (Flat Rate) $580,687 / 385,680 = $1.51
Residential (Multi Unit) $212,401 / 141,072 = $1.51
Commercial Group II $147,740 / 98,126 = $1.51
Commercial Group III $28,358 / 18,835 = $1.51
Commercial Industrial $111,328 / 73,942 = $1.51
Commercial Group IV $66,223 / 43,984 = $1.51
Commercial Group V $40,183 / 26,689 = $1.51
Commercial Schools $11,762 / 7,812 = $1.51
Commercial Higher Education $19,346 / 12,849 = $1.51
Commercial City Property $1,125 / = $1.51 747
Table 75. Strength Rate Component
Customer Class Strength
Cost Strength Units Strength
Component
Residential (Flat Rate) $517,329 / 385,680 = $1.34
Residential (Multi Unit) $189,226 / 141,072 = $1.34
Commercial Group II $164,526 / 98,126 = $1.68
Commercial Group III $63,160 / 18,835 = $3.35
Commercial Industrial $102,753 / 73,942 = $1.39
Commercial Group IV $235,990 / 43,984 = $5.37
Commercial Group V $44,749 / 26,689 = $1.68
Commercial Schools $5,961 / 7,812 = $0.76
Commercial Higher Education $9,804 / 12,849 = $0.76
Commercial City Property $1,002 / = $1.34 747
Table 76. Fixed Rate Component
Customer Class Fixed Cost Fixed Units Bills Per
Year
Fixed
Component
Residential (Flat Rate) $809,786 / 3,973 / = $33.97 6
Residential (Multi Unit) $420,689 / 2,064 / = $33.97 6
Commercial Group II $59,924 / / 294 = $33.97 6
Commercial Group III $11,006 / / 54 = $33.97 6
Commercial Industrial $33,631 / / 165 = $33.97 6
Commercial Group IV $16,306 / / 80 = $33.97 6
Commercial Group V $16,306 / / 80 = $33.97 6
Commercial Schools $2,038 / / 10 = $33.97 6
Commercial Higher Education $1,223 / / 6 = $33.97 6
Commercial City Property $5,503 / / 27 = $33.97 6
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 382 of 520 53 City of San Fernando – 2025 Water and Sewer Rate Study Residential Sewer Rate Calculation
Residential Flat Rate and Residential Multi-Unit customers are billed a fixed bi-monthly rate. To determine these rates, the Flow and Strength components are applied to the average bi-monthly flow per account, and then added to the fixed component. The average per-account bi-monthly flow was calculated by dividing the total annual flow for each customer class by the number of annual bills. The resulting average flows are 16.2 HCF for Residential Flat Rate customers and 11.4 HCF for Residential Multi-Unit customers. Table 77 presents the rate calculation and resulting bi-monthly fixed charges for residential customers.

Table 77. Residential Customers Sewer Rate Calculation
Customer Class Flow
Component
Strength
Component
Bi-Monthly
Flow per
Account
Fixed
Component
Bi-Monthly
Fixed Charge
Residential (Flat Rate) $1.51 + $1.34 x 16.2 + $33.97 = $80.03 Residential (Multi Unit) $1.51 + $1.34 x 11.4 + $33.97 = $66.40 Non-Residential Sewer Rate Calculation
Sewer rates for Commercial customers are composed of two parts: a fixed bi-monthly charge and a variable usage-based charge. The fixed charge recovers costs that do not vary with water use, such as customer service and billing, and is equal to the Fixed component shown in Table 76. The variable charge is applied to all metered water use and is designed to recover costs related to the volume and strength of wastewater discharged by Commercial customers. It is calculated by summing the Flow and Strength components specific to each Commercial customer class. This approach ensures that customers with higher-strength or higher-volume discharges pay proportionally more for their impact on the sewer system. The fixed and variable charge calculations for Commercial customers are shown in Table 78 and, Table 79 respectively.

Table 78. Commercial Customers Fixed Sewer Rate Calculation Customer Class Fixed
Component
Bi-Monthly
Fixed
Charge
Commercial Group II $33.97 = $33.97
Commercial Group III $33.97 = $33.97
Commercial Industrial $33.97 = $33.97
Commercial Group IV $33.97 = $33.97
Commercial Group V $33.97 = $33.97
Commercial Schools $33.97 = $33.97
Commercial Higher Education $33.97 = $33.97
Commercial City Property $33.97 = $33.97
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 383 of 520 54 City of San Fernando – 2025 Water and Sewer Rate Study Table 79. Commercial Customers Variable Sewer Rate Calculation Customer Class Flow
Component
Strength
Component
Variable
Charge
Commercial Group II $1.51 + $1.68 = $3.18
Commercial Group III $1.51 + $3.35 = $4.86
Commercial Industrial $1.51 + $1.39 = $2.90
Commercial Group IV $1.51 + $5.37 = $6.87
Commercial Group V $1.51 + $1.68 = $3.18
Commercial Schools $1.51 + $0.76 = $2.27
Commercial Higher Education $1.51 + $0.76 = $2.27
Commercial City Property $1.51 + $1.34 = $2.85
Sewer Rates
In future years, the rates will be escalated by the revenue adjustments and the five-year rate schedule shown in Table 80. Each adjustment will occur in January, midway through the fiscal year.

Table 80. Proposed Variable Sewer Rates FY 2026 to FY 2030 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Proposed Adjustment 3.0% 3.0% 3.0% 3.0% 3.0%
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Residential (Flat Rate) $82.43 $84.91 $87.45 $90.08 $92.78 Residential (Multi Unit) $68.39 $70.45 $72.56 $74.74 $76.98 Commercial Group II $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group III $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Industrial $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Group IV $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group V $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Schools $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Higher Education $34.99 $36.04 $37.12 $38.23 $39.38 Commercial City Property $34.99 $36.04 $37.12 $38.23 $39.38 Customer Class FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Commercial Group II $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Group III $5.00 $5.15 $5.31 $5.47 $5.63
Commercial Industrial $2.98 $3.07 $3.16 $3.26 $3.36
Commercial Group IV $7.08 $7.29 $7.51 $7.73 $7.97
Commercial Group V $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Schools $2.34 $2.41 $2.48 $2.55 $2.63
Commercial Higher Education $2.34 $2.41 $2.48 $2.55 $2.63 Commercial City Property $2.93 $3.02 $3.11 $3.20 $3.30
Fixed Charges
Variable Charges
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 384 of 520 55 City of San Fernando – 2025 Water and Sewer Rate Study

CONCLUSION

5.1 Summary of Recommendations and Financial Results
Recommendations:

Water
• Adjusting rates annually by the recommended revenue adjustments of 5.0 percent per year • Develop fixed meter rates for larger meters based on their respective capacity requirements • Introducing a passthrough rate for when the City must purchase water from the Metropolitan Water District
Sewer
• Adjusting rates annually by the recommended revenue adjustments of 3.0 percent per year • Adjust basis for School sewer rates to water use rather than number of students The following figures summarize the recommendations of this report:

Figure 12 shows the status quo water financial plan used for this study.

Figure 12. Rate Study Water Status Quo Financial Plan
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 385 of 520 56 City of San Fernando – 2025 Water and Sewer Rate Study Figure 13 shows the City’s water utility ending cash balances with no adjustments to the revenue requirements.

Figure 13. Ending Water Cash Balances with No Revenue Adjustment RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 386 of 520 57 City of San Fernando – 2025 Water and Sewer Rate Study Figure 14 shows the recommended annual water revenue adjustments for each year of the rate setting period.

Figure 14. Recommended Water Revenue Adjustment
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 387 of 520 58 City of San Fernando – 2025 Water and Sewer Rate Study Figure 15 shows the proposed financial plan with revenue adjustments used for this study.

Figure 15. Recommended Rate Study Adjusted Water Financial Plan RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 388 of 520 59 City of San Fernando – 2025 Water and Sewer Rate Study Table 81 and Table 82 show the proposed fixed rates and variable rates based on the proposed revenue adjustments and cost of service analysis for each year of the rate setting period, respectively.

Table 81. Proposed Fixed Rates for FY 2026 to FY 2030
Meter Size FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
3/4" $56.63 $59.46 $62.44 $65.56 $68.84
1" $112.55 $118.18 $124.09 $130.29 $136.81
1 1/2" $205.75 $216.04 $226.84 $238.19 $250.10
2" $317.60 $333.48 $350.15 $367.66 $386.04
3" $671.76 $705.35 $740.62 $777.65 $816.53
4" $1,193.69 $1,253.38 $1,316.04 $1,381.85 $1,450.94
6" $3,001.80 $3,151.89 $3,309.49 $3,474.96 $3,648.71
8" $5,238.64 $5,500.57 $5,775.60 $6,064.38 $6,367.60
10" $7,848.29 $8,240.70 $8,652.74 $9,085.37 $9,539.64
Fixed Charges
Table 82. Proposed Variable and MWD Variable Rates for FY 2026 to FY 2030 All Customers FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
All Use $3.28 $3.45 $3.62 $3.80 $3.99
Variable Charges
All Customers FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
MWD Water $4.98 $5.23 $5.49 $5.76 $6.05
Variable Charges
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 389 of 520 60 City of San Fernando – 2025 Water and Sewer Rate Study Figure 16 shows the City’s ending cash balances after revenue and rate adjustments are made.

Figure 16. Ending Water Cash Balances with Recommended Revenue Adjustments RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 390 of 520 61 City of San Fernando – 2025 Water and Sewer Rate Study Figure 17 shows the status quo sewer financial plan used for this study.

Figure 17. Rate Study Sewer Status Quo Financial Plan
$4.5
$3.9
$4.1 $4.2
$5.1 $5.2
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Millions
Operating Expense Debt Service Capital Paygo Revenue Current RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 391 of 520 62 City of San Fernando – 2025 Water and Sewer Rate Study Figure 18 shows the City’s sewer utility ending cash balances with no adjustments to the revenue requirements.

Figure 18. Ending Sewer Cash Balances with No Revenue Adjustment Figure 19 shows the recommended annual sewer revenue adjustments for each year of the rate setting period.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 392 of 520 63 City of San Fernando – 2025 Water and Sewer Rate Study Figure 19. Recommended Sewer Revenue Adjustment
Table 83 shows the resulting Sewer rates based on the proposed revenue adjustments and cost of service analysis for each year of the rate setting period, respectively.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 393 of 520 64 City of San Fernando – 2025 Water and Sewer Rate Study Table 83. Proposed Sewer Rates Based on the Proposed Revenue Adjustment Customer Class FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Residential (Flat Rate) $82.43 $84.91 $87.45 $90.08 $92.78 Residential (Multi Unit) $68.39 $70.45 $72.56 $74.74 $76.98 Commercial Group II $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group III $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Industrial $34.99 $36.04 $37.12 $38.23 $39.38 Commercial Group IV $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Group V $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Schools $34.99 $36.04 $37.12 $38.23 $39.38
Commercial Higher Education $34.99 $36.04 $37.12 $38.23 $39.38 Commercial City Property $34.99 $36.04 $37.12 $38.23 $39.38 Customer Class FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Commercial Group II $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Group III $5.00 $5.15 $5.31 $5.47 $5.63
Commercial Industrial $2.98 $3.07 $3.16 $3.26 $3.36
Commercial Group IV $7.08 $7.29 $7.51 $7.73 $7.97
Commercial Group V $3.28 $3.38 $3.48 $3.58 $3.69
Commercial Schools $2.34 $2.41 $2.48 $2.55 $2.63
Commercial Higher Education $2.34 $2.41 $2.48 $2.55 $2.63 Commercial City Property $2.93 $3.02 $3.11 $3.20 $3.30
Variable Charges
Fixed Charges
Figure 20 shows the proposed financial plan with revenue adjustments used for this study.

RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 394 of 520 65 City of San Fernando – 2025 Water and Sewer Rate Study Figure 20. Rate Study Adjusted Sewer Financial Plan
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 395 of 520 66 City of San Fernando – 2025 Water and Sewer Rate Study Figure 21 shows the City’s ending cash balances after revenue and rate adjustments are made.

Figure 21. Recommended Ending Sewer Cash Balances with Revenue Adjustment RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 396 of 520 67 City of San Fernando – 2025 Water and Sewer Rate Study

5.2 Rate Impacts and Comparison
Figure 22 and Figure 23 show combined test year rate impacts water and sewer utilities on different residential customer use levels.

Figure 22. Single Family Residential 3/4" Combined Impacts for Water and Sewer $90.04
$121.04 $136.54
$170.64
$84.82
$84.82
$84.82
$84.82
$92.73
$125.54 $141.95
$178.05
$82.43
$82.43
$82.43
$82.43
$174.86 $175.16
$205.86 $207.98
$221.36 $224.38
$255.46 $260.48
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
11 hcf (25
percentile)
21 hcf
(average)
26 hcf (75
percentile)
37 hcf (90
percentile)
Water Current Sewer Current Water Proposed Sewer Proposed RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 397 of 520 68 City of San Fernando – 2025 Water and Sewer Rate Study Figure 23. Multi-Family Residential Combined Impacts for Water and Sewer (Four Units) $360.18
$406.68
$434.58
$493.48
$389.27
$438.49
$468.03
$530.38
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
18 hcf (25 percentile) 33 hcf (average) 42 hcf (75 percentile) 61 hcf (90 percentile) Current Proposed
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 398 of 520 69 City of San Fernando – 2025 Water and Sewer Rate Study

APPENDIX
This appendix includes the background data used in this report.

Fixed Revenue/Growth Projections - Water
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Single Family $1,373,000 $1,386,457 $1,400,251 $1,414,044 $1,427,837 $1,441,966 $1,456,095 $1,470,224 $1,484,688 $1,499,153 $1,513,953 3/4" 3,436 3,470 3,505 3,540 3,575 3,611 3,647 3,683 3,720 3,757 3,795 1" 296 299 302 305 308 311 314 317 320 323 326
1 1/2" 8 8 8 8 8 8 8 8 8 8 8
2" 4 4 4 4 4 4 4 4 4 4 4
Multi-Family $296,488 $298,177 $299,866 $301,555 $303,244 $304,933 $306,622 $308,310 $309,999 $311,688 $313,377 3/4" 278 281 284 287 290 293 296 299 302 305 308
1" 128 129 130 131 132 133 134 135 136 137 138
1 1/2" 38 38 38 38 38 38 38 38 38 38 38
2" 23 23 23 23 23 23 23 23 23 23 23
3" 3 3 3 3 3 3 3 3 3 3 3
4" 2 2 2 2 2 2 2 2 2 2 2
Commercial $370,081 $374,645 $379,209 $387,573 $392,137 $396,701 $401,265 $409,628 $414,192 $418,757 $423,321 3/4" 217 219 221 223 225 227 229 231 233 235 237
1" 102 103 104 105 106 107 108 109 110 111 112
1 1/2" 62 63 64 65 66 67 68 69 70 71 72
2" 56 57 58 59 60 61 62 63 64 65 66
3" 6 6 6 7 7 7 7 8 8 8 8
4" 1 1 1 1 1 1 1 1 1 1 1
10" 1 1 1 1 1 1 1 1 1 1 1
Industrial $145,751 $145,751 $145,751 $145,751 $145,751 $145,751 $145,751 $145,751 $145,751 $145,751 $145,751 3/4" 47 47 47 47 47 47 47 47 47 47 47
1" 45 45 45 45 45 45 45 45 45 45 45
1 1/2" 37 37 37 37 37 37 37 37 37 37 37
2" 27 27 27 27 27 27 27 27 27 27 27
Irrigation $65,265 $69,158 $69,158 $71,445 $71,445 $74,079 $74,415 $75,674 $77,625 $78,643 $80,595 3/4" 15 15 15 16 16 16 17 17 17 18 18
1" 22 23 23 23 23 24 24 24 24 25 25
1 1/2" 8 9 9 9 9 9 9 10 10 10 10
2" 15 16 16 17 17 18 18 18 19 19 20
4" 1 1 1 1 1 1 1 1 1 1 1
Church $49,242 $49,242 $49,242 $49,242 $49,242 $50,501 $50,501 $50,501 $50,501 $50,501 $50,501 3/4" 13 13 13 13 13 13 13 13 13 13 13
1" 13 13 13 13 13 13 13 13 13 13 13
1 1/2" 10 10 10 10 10 11 11 11 11 11 11
2" 12 12 12 12 12 12 12 12 12 12 12
County $31,586 $31,586 $31,586 $31,586 $31,586 $31,586 $31,586 $31,586 $31,586 $31,586 $31,586 3/4" 2 2 2 2 2 2 2 2 2 2 2
1" 2 2 2 2 2 2 2 2 2 2 2
1 1/2" 2 2 2 2 2 2 2 2 2 2 2
2" 5 5 5 5 5 5 5 5 5 5 5
3" 3 3 3 3 3 3 3 3 3 3 3
4" 1 1 1 1 1 1 1 1 1 1 1
City $75,327 $76,345 $75,075 $75,757 $76,439 $76,775 $75,505 $76,187 $76,187 $77,204 $75,253 3/4" 29 30 30 30 30 31 31 31 31 32 32
1" 15 16 17 18 19 19 20 21 21 22 22
1 1/2" 7 7 7 7 7 7 7 7 7 7 7
2" 15 15 14 14 14 14 13 13 13 13 12
3" 3 3 3 3 3 3 3 3 3 3 3
4" 1 1 1 1 1 1 1 1 1 1 1
Low Income $50,674 $51,081 $51,489 $51,896 $52,303 $52,710 $53,118 $53,525 $53,932 $54,339 $54,747 3/4" 219 221 223 225 227 229 231 233 235 237 239
1" 9 9 9 9 9 9 9 9 9 9 9
1 1/2" 1 1 1 1 1 1 1 1 1 1 1
Elementary $33,916 $33,916 $33,916 $33,916 $33,916 $33,916 $33,916 $33,916 $33,916 $33,916 $33,916 3/4" 1 1 1 1 1 1 1 1 1 1 1
1 1/2" 2 2 2 2 2 2 2 2 2 2 2
2" 6 6 6 6 6 6 6 6 6 6 6
3" 2 2 2 2 2 2 2 2 2 2 2
4" 2 2 2 2 2 2 2 2 2 2 2
Higher Education $40,445 $40,445 $40,445 $40,445 $40,445 $40,445 $40,445 $40,445 $40,445 $40,445 $40,445 3/4" 1 1 1 1 1 1 1 1 1 1 1
1 1/2" 1 1 1 1 1 1 1 1 1 1 1
2" 2 2 2 2 2 2 2 2 2 2 2
6" 3 3 3 3 3 3 3 3 3 3 3
RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 399 of 520 70 City of San Fernando – 2025 Water and Sewer Rate Study Variable Revenue/Use Projections - Water
Other Revenues - Water
Operating Expenses - Water
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Single Family $1,459,417 $1,473,839 $1,488,652 $1,503,464 $1,518,277 $1,533,479 $1,548,681 $1,563,883 $1,579,475 $1,595,067 $1,611,049 Width 1 0 hcf 470,780 475,432 480,210 484,988 489,767 494,671 499,575 504,479 509,508 514,538 519,693 Multi-Family $495,554 $499,754 $503,953 $508,153 $512,352 $516,552 $520,752 $524,951 $529,151 $533,350 $537,550 Width 1 hcf 159,856 161,211 162,566 163,920 165,275 166,630 167,984 169,339 170,694 172,049 173,403 Commercial $478,722 $484,101 $489,480 $495,935 $501,314 $506,693 $512,072 $518,526 $523,905 $529,284 $534,663 Width 1 hcf 154,427 156,162 157,897 159,979 161,714 163,449 165,184 167,267 169,002 170,737 172,472 Industrial $236,333 $236,333 $236,333 $236,333 $236,333 $236,333 $236,333 $236,333 $236,333 $236,333 $236,333 Width 1 hcf 76,237 76,237 76,237 76,237 76,237 76,237 76,237 76,237 76,237 76,237 76,237 Irrigation $85,793 $90,013 $90,013 $92,826 $92,826 $95,638 $97,045 $98,451 $99,858 $102,671 $104,077 Width 1 hcf 27,675 29,036 29,036 29,944 29,944 30,851 31,305 31,758 32,212 33,120 33,573 Church $36,171 $36,171 $36,171 $36,171 $36,171 $36,924 $36,924 $36,924 $36,924 $36,924 $36,924 Width 1 hcf 11,668 11,668 11,668 11,668 11,668 11,911 11,911 11,911 11,911 11,911 11,911 County $61,451 $61,451 $61,451 $61,451 $61,451 $61,451 $61,451 $61,451 $61,451 $61,451 $61,451 Width 1 hcf 19,823 19,823 19,823 19,823 19,823 19,823 19,823 19,823 19,823 19,823 19,823 City $72,000 $74,057 $74,057 $75,085 $76,114 $77,142 $77,142 $78,171 $78,171 $80,228 $79,200 Width 1 hcf 23,226 23,889 23,889 24,221 24,553 24,885 24,885 25,216 25,216 25,880 25,548 Low Income $75,531 $76,190 $76,850 $77,510 $78,169 $78,829 $79,489 $80,148 $80,808 $81,468 $82,127 Width 1 hcf 24,365 24,578 24,790 25,003 25,216 25,429 25,642 25,854 26,067 26,280 26,493 Elementary $23,554 $23,554 $23,554 $23,554 $23,554 $23,554 $23,554 $23,554 $23,554 $23,554 $23,554 Width 1 hcf 7,598 7,598 7,598 7,598 7,598 7,598 7,598 7,598 7,598 7,598 7,598 Higher Education $30,203 $30,203 $30,203 $30,203 $30,203 $30,203 $30,203 $30,203 $30,203 $30,203 $30,203 Width 1 hcf 9,743 9,743 9,743 9,743 9,743 9,743 9,743 9,743 9,743 9,743 9,743 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Fixed Rate Revenue $2,531,774 $2,556,803 $2,575,987 $2,603,209 $2,624,344 $2,649,362 $2,669,217 $2,695,746 $2,718,823 $2,741,983 $2,763,444 Variable Rate Revenue $3,054,729 $3,085,667 $3,110,717 $3,140,685 $3,166,764 $3,196,800 $3,223,647 $3,252,598 $3,279,834 $3,310,535 $3,337,133 Other Operating Revenue $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 Delinquent Penalties $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Meter and Fire Service $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 Water Installation Charge $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 Capital Facility Charges $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Backflow Prevention Fee $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 Miscellaneous Revenue $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Non-Operating Revenue $50,000 $50,250 $50,501 $50,754 $51,008 $51,263 $51,519 $51,776 $52,035 $52,296 $52,557 Interest Income $50,000.00 $50,250 $50,501 $50,754 $51,008 $51,263 $51,519 $51,776 $52,035 $52,296 $52,557 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Total Operating Expense $4,738,438 $4,940,072 $5,149,716 $5,358,311 $5,558,618 $5,768,347 $5,988,008 $6,218,141 $6,459,321 $6,712,155 $6,977,290 Professional Services $1,000 $1,032 $1,065 $1,099 $1,134 $1,171 $1,208 $1,247 $1,287 $1,328 $1,370 OPEB GASB 75 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retirement $254,533 $273,670 $294,245 $316,367 $340,153 $365,727 $393,224 $422,788 $454,574 $488,751 $525,497 Pension Expense GASB 75 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Retire Emp. Health Insurance $95,000 $102,142 $109,822 $118,079 $126,956 $136,501 $146,764 $157,798 $169,662 $182,418 $196,132 Administrative Expense $721 $775 $833 $896 $964 $1,036 $1,114 $1,198 $1,288 $1,384 $1,489 Salaries- Permanent Employees $362,242 $376,732 $391,801 $407,473 $423,772 $440,723 $458,352 $476,686 $495,753 $515,583 $536,207 Wages - Temporary and Part Time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Overtime $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
OASDI $26,601 $27,665 $28,772 $29,923 $31,119 $32,364 $33,659 $35,005 $36,405 $37,862 $39,376 Retirement $64,891 $69,770 $75,015 $80,655 $86,719 $93,239 $100,249 $107,786 $115,890 $124,603 $133,971 Health Insurance $55,392 $60,715 $66,088 $70,304 $72,385 $74,528 $76,734 $79,006 $81,344 $83,752 $86,232 Dental Insurance $1,731 $1,897 $2,065 $2,197 $2,262 $2,329 $2,398 $2,469 $2,542 $2,617 $2,695 Retiree Health Savings $450 $493 $537 $571 $588 $605 $623 $642 $661 $680 $701 Worker's Compensation Ins $28,305 $31,025 $33,771 $35,925 $36,989 $38,083 $39,211 $40,372 $41,567 $42,797 $44,064 Compensated Absences $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long Term Disability Insurance $2,123 $2,327 $2,533 $2,695 $2,774 $2,856 $2,941 $3,028 $3,118 $3,210 $3,305 Optical Insurance $577 $632 $688 $732 $754 $776 $799 $823 $847 $872 $898 Life Insurance $216 $237 $258 $274 $282 $291 $299 $308 $317 $327 $336 Wellness Benefit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Covid 19 Global Outbreak $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Utilities $600 $627 $656 $686 $717 $749 $783 $819 $856 $895 $935 Contractual Services $50,000 $51,600 $53,251 $54,955 $56,714 $58,529 $60,402 $62,334 $64,329 $66,388 $68,512 Professional Services $45,000 $46,440 $47,926 $49,460 $51,042 $52,676 $54,361 $56,101 $57,896 $59,749 $61,661 Office Equipment Maintenance $1,000 $1,009 $1,018 $1,028 $1,037 $1,047 $1,056 $1,066 $1,076 $1,086 $1,096 Department Supplies $3,000 $3,028 $3,055 $3,084 $3,112 $3,140 $3,169 $3,198 $3,228 $3,258 $3,288 Department Equipment Maintenance $1,500 $1,514 $1,528 $1,542 $1,556 $1,570 $1,585 $1,599 $1,614 $1,629 $1,644 Uniform Allowance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Building Maintenance and Repairs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Personnel Training $3,000 $3,096 $3,195 $3,297 $3,403 $3,512 $3,624 $3,740 $3,860 $3,983 $4,111 Meetings, Memberships and Travel $3,000 $3,096 $3,195 $3,297 $3,403 $3,512 $3,624 $3,740 $3,860 $3,983 $4,111 Subscriptions Dues and Memberships $7,550 $7,792 $8,041 $8,298 $8,564 $8,838 $9,121 $9,412 $9,714 $10,025 $10,345 Mileage Reimbursement $900 $931 $963 $996 $1,030 $1,065 $1,102 $1,139 $1,178 $1,219 $1,261 Vehicle Operation and Maintenance $1,000 $1,034 $1,070 $1,106 $1,144 $1,183 $1,224 $1,266 $1,309 $1,354 $1,401 Fuel $1,000 $1,034 $1,070 $1,106 $1,144 $1,183 $1,224 $1,266 $1,309 $1,354 $1,401 Activities and Programs $6,500 $6,708 $6,923 $7,144 $7,373 $7,609 $7,852 $8,103 $8,363 $8,630 $8,907 Other Expense $55,000 $56,760 $58,576 $60,451 $62,385 $64,382 $66,442 $68,568 $70,762 $73,026 $75,363 Cost Allocation $684,534 $706,439 $729,045 $752,375 $776,451 $801,297 $826,938 $853,401 $880,709 $908,892 $937,977 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 400 of 520 71 City of San Fernando – 2025 Water and Sewer Rate Study Contractual Services $6,453 $6,659 $6,873 $7,093 $7,319 $7,554 $7,795 $8,045 $8,302 $8,568 $8,842 Department Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liability Charge $26,105 $26,940 $27,802 $28,692 $29,610 $30,558 $31,536 $32,545 $33,586 $34,661 $35,770 Equip Maint Charge $3,227 $3,257 $3,287 $3,317 $3,347 $3,378 $3,409 $3,441 $3,472 $3,504 $3,536 Equip Replacement Charge $33,117 $33,421 $33,729 $34,039 $34,352 $34,668 $34,986 $35,308 $35,633 $35,960 $36,291 Facility Maintenance Charge $29,747 $30,020 $30,297 $30,575 $30,856 $31,140 $31,426 $31,715 $32,007 $32,301 $32,598 Transfer to General Fund $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Transfer to Self-Insurance Fund $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Transfer to Retirement Fund $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transfer to Facility Maint Fund $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Salaries- Permanent Employees $173,713 $180,662 $187,888 $195,404 $203,220 $211,348 $219,802 $228,594 $237,738 $247,248 $257,138 Wages - Temporary and Part Time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Overtime $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
OASDI $13,290 $13,822 $14,374 $14,949 $15,547 $16,169 $16,816 $17,489 $18,188 $18,916 $19,672 Retirement $33,607 $36,837 $40,096 $42,655 $43,917 $45,217 $46,556 $47,934 $49,353 $50,814 $52,318 Health Insurance $60,389 $66,192 $72,050 $76,647 $78,915 $81,251 $83,657 $86,133 $88,683 $91,308 $94,011 Dental Insurance $1,888 $2,069 $2,253 $2,396 $2,467 $2,540 $2,615 $2,693 $2,773 $2,855 $2,939 Retiree Health Savings $576 $631 $687 $731 $753 $775 $798 $822 $846 $871 $897 Worker's Compensation Ins $7,963 $8,728 $9,501 $10,107 $10,406 $10,714 $11,031 $11,358 $11,694 $12,040 $12,396 Long Term Disability Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Optical Insurance $630 $691 $752 $800 $823 $848 $873 $899 $925 $953 $981 Life Insurance $208 $228 $248 $264 $272 $280 $288 $297 $305 $314 $324 Contractual Services $10,000 $10,320 $10,650 $10,991 $11,343 $11,706 $12,080 $12,467 $12,866 $13,278 $13,702 Professional Services $500 $516 $533 $550 $567 $585 $604 $623 $643 $664 $685 Office Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Department Supllies $15,000 $15,138 $15,277 $15,418 $15,559 $15,702 $15,847 $15,992 $16,139 $16,288 $16,438 Department Equipment Maintenance $2,000 $2,018 $2,037 $2,056 $2,075 $2,094 $2,113 $2,132 $2,152 $2,172 $2,192 Mileage Reimbursement $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Vehicle Operation and Maintenance $2,000 $2,069 $2,139 $2,213 $2,289 $2,367 $2,448 $2,532 $2,619 $2,708 $2,801 Fuel $4,000 $4,137 $4,279 $4,425 $4,577 $4,734 $4,896 $5,064 $5,237 $5,417 $5,603 Bad Debts Expense $25,000 $25,800 $26,626 $27,478 $28,357 $29,264 $30,201 $31,167 $32,165 $33,194 $34,256 Liability Charge $14,101 $14,231 $14,361 $14,494 $14,627 $14,761 $14,897 $15,034 $15,172 $15,312 $15,452 Equip Maint Charge $6,455 $6,514 $6,574 $6,635 $6,696 $6,757 $6,819 $6,882 $6,945 $7,009 $7,074 Equip Replacement Charge $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Facility Maintenance Charge $28,632 $28,632 $28,632 $28,632 $28,632 $28,632 $28,632 $28,632 $28,632 $28,632 $28,632 Salaries- Permanent Employees $288,758 $300,308 $312,321 $324,813 $337,806 $351,318 $365,371 $379,986 $395,185 $410,993 $427,432 Overtime $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Temp Non-Employee Wages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 OASDI $22,090 $22,974 $23,893 $24,848 $25,842 $26,876 $27,951 $29,069 $30,232 $31,441 $32,699 Retirement $53,500 $57,522 $61,847 $66,497 $71,496 $76,872 $82,651 $88,865 $95,546 $102,730 $110,454 Health Insurance $73,953 $81,060 $88,233 $93,862 $96,641 $99,501 $102,447 $105,479 $108,602 $111,816 $115,126 Retired Employee Health Ins $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dental Insurance $2,312 $2,534 $2,758 $2,934 $3,021 $3,111 $3,203 $3,298 $3,395 $3,496 $3,599 Retiree Health Savings $1,464 $1,605 $1,747 $1,858 $1,913 $1,970 $2,028 $2,088 $2,150 $2,214 $2,279 Worker's Compensation Ins $28,876 $31,651 $34,452 $36,650 $37,735 $38,852 $40,002 $41,186 $42,405 $43,660 $44,953 Long Term Disability Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Optical Insurance $771 $845 $920 $979 $1,008 $1,037 $1,068 $1,100 $1,132 $1,166 $1,200 Life Insurance $288 $316 $344 $366 $376 $387 $399 $411 $423 $435 $448 Contractual Services $22,000 $22,704 $23,431 $24,180 $24,954 $25,753 $26,577 $27,427 $28,305 $29,211 $30,145 Professional Services $4,000 $4,128 $4,260 $4,396 $4,537 $4,682 $4,832 $4,987 $5,146 $5,311 $5,481 Office Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Department Supplies $6,700 $6,762 $6,824 $6,887 $6,950 $7,014 $7,078 $7,143 $7,209 $7,275 $7,342 Equipment and Supplies $77,000 $77,708 $78,422 $79,143 $79,871 $80,605 $81,346 $82,094 $82,849 $83,611 $84,380 Department Equipment Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Building Maintenance and Repairs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Small Tools $2,500 $2,523 $2,546 $2,570 $2,593 $2,617 $2,641 $2,665 $2,690 $2,715 $2,740 Personnel Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Vehicle Operation and Maintenance $23,400 $24,202 $25,031 $25,889 $26,776 $27,693 $28,642 $29,624 $30,639 $31,689 $32,775 Fuel $9,000 $9,308 $9,627 $9,957 $10,298 $10,651 $11,016 $11,394 $11,784 $12,188 $12,606 PW Maint and Repair Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Covid 19 Global Outbreak $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Capital Projects $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liability Charge $22,816 $23,026 $23,237 $23,451 $23,667 $23,884 $24,104 $24,326 $24,549 $24,775 $25,003 Equip Replacement Charge $3,227 $3,257 $3,287 $3,317 $3,347 $3,378 $3,409 $3,441 $3,472 $3,504 $3,536 Facility Maintenance Charge $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equip Maint Charge $39,539 $39,539 $39,539 $39,539 $39,539 $39,539 $39,539 $39,539 $39,539 $39,539 $39,539 Salaries- Permanent Employees $316,866 $329,541 $342,722 $356,431 $370,688 $385,516 $400,937 $416,974 $433,653 $450,999 $469,039 OASDI $24,241 $25,211 $26,219 $27,268 $28,359 $29,493 $30,673 $31,900 $33,175 $34,503 $35,883 Retirement $51,268 $55,123 $59,267 $63,723 $68,514 $73,665 $79,203 $85,158 $91,560 $98,444 $105,845 Health Insurance $94,753 $103,858 $113,050 $120,262 $123,822 $127,487 $131,261 $135,146 $139,147 $143,266 $147,507 Dental Insurance $2,962 $3,247 $3,534 $3,759 $3,871 $3,985 $4,103 $4,225 $4,350 $4,479 $4,611 Retiree Health Savings $2,364 $2,591 $2,820 $3,000 $3,089 $3,181 $3,275 $3,372 $3,472 $3,574 $3,680 Worker's Compensation Ins $31,687 $34,732 $37,806 $40,218 $41,408 $42,634 $43,896 $45,195 $46,533 $47,911 $49,329 Optical Insurance $988 $1,083 $1,179 $1,254 $1,291 $1,329 $1,369 $1,409 $1,451 $1,494 $1,538 Life Insurance $333 $365 $397 $423 $435 $448 $461 $475 $489 $503 $518 Utilities $300,000 $313,624 $327,866 $342,755 $358,320 $374,592 $391,603 $409,387 $427,978 $447,413 $467,731 Telephone $20,000 $20,908 $21,858 $22,850 $23,888 $24,973 $26,107 $27,292 $28,532 $29,828 $31,182 Rents and Leases $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contractual Services $234,000 $241,488 $249,216 $257,191 $265,421 $273,914 $282,679 $291,725 $301,060 $310,694 $320,636 Department Supplies $260,000 $262,390 $264,803 $267,237 $269,694 $272,174 $274,676 $277,202 $279,750 $282,322 $284,918 Equipment and Supplies $20,000 $20,184 $20,369 $20,557 $20,746 $20,936 $21,129 $21,323 $21,519 $21,717 $21,917 Department Equipment Maintenance $5,000 $5,046 $5,092 $5,139 $5,186 $5,234 $5,282 $5,331 $5,380 $5,429 $5,479 Building Maintenance and Repairs $6,500 $6,560 $6,620 $6,681 $6,742 $6,804 $6,867 $6,930 $6,994 $7,058 $7,123 Small Tools $1,000 $1,009 $1,018 $1,028 $1,037 $1,047 $1,056 $1,066 $1,076 $1,086 $1,096 Personnel Training $1,000 $1,032 $1,065 $1,099 $1,134 $1,171 $1,208 $1,247 $1,287 $1,328 $1,370 Meetings, Memberships and Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 401 of 520 72 City of San Fernando – 2025 Water and Sewer Rate Study Debt Service - Water
Fixed Revenue/Growth Projections – Sewer
Variable Revenue/Sewer Flow Projections
Vehicle Operation and Maintenance $3,000 $3,103 $3,209 $3,319 $3,433 $3,550 $3,672 $3,798 $3,928 $4,063 $4,202 Fuel $3,000 $3,103 $3,209 $3,319 $3,433 $3,550 $3,672 $3,798 $3,928 $4,063 $4,202 Activities and Programs $1,500 $1,548 $1,598 $1,649 $1,701 $1,756 $1,812 $1,870 $1,930 $1,992 $2,055 Other Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
PW Maint and Repair Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Nitrate Removal System $200,000 $212,101 $224,934 $238,543 $252,976 $268,282 $284,514 $301,729 $319,985 $339,345 $359,877 Liability Charge $25,851 $26,089 $26,329 $26,571 $26,815 $27,061 $27,310 $27,561 $27,815 $28,070 $28,329 Equip Replacement Charge $3,227 $3,257 $3,287 $3,317 $3,347 $3,378 $3,409 $3,441 $3,472 $3,504 $3,536 Facility Maintenance Charge $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equip Maint Charge $45,737 $46,158 $46,582 $47,010 $47,442 $47,879 $48,319 $48,763 $49,211 $49,664 $50,120 Description Category Utility Included in DSCR FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 2021B Pension Obligation Principal Water No $113,150 $113,150 $113,150 $116,800 $116,800 $125,560 $125,560 $125,560 $125,560 $125,560 $142,350 2021B Pension Obligation Interest Water No $82,262 $81,188 $79,775 $78,033 $76,002 $68,367 $68,367 $68,367 $68,367 $68,367 $28,982 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Residential (Flat Rate) $1,905,396 $1,924,227 $1,943,565 $1,962,904 $1,982,243 $2,002,091 $2,021,939 $2,041,787 $2,062,144 $2,082,501 $2,103,366 3,744 3,781 3,819 3,857 3,895 3,934 3,973 4,012 4,052 4,092 4,133 Residential (Multi Unit) $769,170 $775,689 $782,207 $788,725 $795,244 $801,762 $808,281 $814,799 $821,317 $827,836 $834,354 2,064 2,081 2,099 2,116 2,134 2,151 2,169 2,186 2,204 2,221 2,239 Commercial $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
- - - - - - - - - - -
Commercial Group II $62,781 $63,421 $64,062 $64,703 $65,343 $65,984 $66,624 $67,265 $67,906 $68,546 $69,187 294 297 300 303 306 309 312 315 318 321 324
Commercial Group III $11,531 $11,745 $11,958 $12,172 $12,385 $12,599 $12,812 $13,026 $13,239 $13,453 $13,667 54 55 56 57 58 59 60 61 62 63 64
Commercial Group IV $17,083 $17,297 $17,510 $17,724 $17,937 $18,151 $18,364 $18,578 $18,792 $19,005 $19,219 80 81 82 83 84 85 86 87 88 89 90
Commercial Group V $17,083 $17,297 $17,510 $17,724 $17,937 $18,151 $18,364 $18,578 $18,792 $19,005 $19,219 80 81 82 83 84 85 86 87 88 89 90
Commercial Industrial $35,234 $35,661 $36,088 $36,515 $36,942 $37,370 $37,797 $38,224 $38,651 $39,078 $39,505 165 167 169 171 173 175 177 179 181 183 185
Commercial Schools $2,135 $2,135 $2,135 $2,135 $2,135 $2,135 $2,135 $2,135 $2,135 $2,135 $2,135 10 10 10 10 10 10 10 10 10 10 10
Commercial Higher Education $1,281 $1,281 $1,281 $1,281 $1,281 $1,281 $1,281 $1,281 $1,281 $1,281 $1,281 6 6 6 6 6 6 6 6 6 6 6
Commercial City Property $5,766 $5,766 $5,766 $5,766 $5,766 $5,766 $5,766 $5,766 $5,766 $5,766 $5,766 27 27 27 27 27 27 27 27 27 27 27
Low Income $97,307 $98,157 $99,006 $99,856 $100,706 $101,556 $102,406 $103,256 $104,105 $104,955 $105,805 229 231 233 235 237 239 241 243 245 247 249
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Commercial Group II Tier Allocation $283,584 $286,478 $289,372 $292,265 $295,159 $298,053 $300,946 $303,840 $306,734 $309,628 $312,521 Width 1 98,126.00 99,127.29 100,128.57 101,129.86 102,131.14 103,132.43 104,133.71 105,135.00 106,136.29 107,137.57 108,138.86 Commercial Group III $90,220 $91,890 $93,561 $95,232 $96,903 $98,573 $100,244 $101,915 $103,586 $105,256 $106,927 Width 1 18,835.00 19,183.80 19,532.59 19,881.39 20,230.19 20,578.98 20,927.78 21,276.57 21,625.37 21,974.17 22,322.96 Commercial Group IV $311,407 $315,299 $319,192 $323,084 $326,977 $330,870 $334,762 $338,655 $342,547 $346,440 $350,333 Width 1 43,984.00 44,533.80 45,083.60 45,633.40 46,183.20 46,733.00 47,282.80 47,832.60 48,382.40 48,932.20 49,482.00 Commercial Group V $77,131 $78,095 $79,059 $80,024 $80,988 $81,952 $82,916 $83,880 $84,844 $85,808 $86,773 Width 1 26,689.00 27,022.61 27,356.23 27,689.84 28,023.45 28,357.06 28,690.68 29,024.29 29,357.90 29,691.51 30,025.13 Commercial Industrial $190,770 $193,083 $195,395 $197,707 $200,020 $202,332 $204,645 $206,957 $209,269 $211,582 $213,894 Width 1 73,942.00 74,838.27 75,734.53 76,630.80 77,527.07 78,423.33 79,319.60 80,215.87 81,112.13 82,008.40 82,904.67 Commercial Schools $29,340 $27,509 $27,509 $27,509 $27,509 $27,509 $27,509 $27,509 $27,509 $27,509 $27,509 Width 1 Attendance 2,629 2,465 2,465 2,465 2,465 2,465 2,465 2,465 2,465 2,465 2,465 Commercial Higher Education $20,970 $20,970 $20,970 $20,970 $20,970 $20,970 $20,970 $20,970 $20,970 $20,970 $20,970 Width 1 Attendance 1,879 1,879 1,879 1,879 1,879 1,879 1,879 1,879 1,879 1,879 1,879 Commercial City Property $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 Width 1 747.00 747.00 747.00 747.00 747.00 747.00 747.00 747.00 747.00 747.00 747.00 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 402 of 520 73 City of San Fernando – 2025 Water and Sewer Rate Study Other Revenues – Sewer
Operating Expenses – Sewer
Debt Service – Sewer
Budget Inflator FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Fixed Rate Revenue $2,924,768 $2,952,675 $2,981,090 $3,009,506 $3,037,921 $3,066,846 $3,095,770 $3,124,694 $3,154,128 $3,183,561 $3,213,503 Variable Rate Revenue $1,005,296 $1,015,200 $1,026,933 $1,038,667 $1,050,400 $1,062,134 $1,073,867 $1,085,601 $1,097,334 $1,109,068 $1,120,802 Other Operating Revenue $75,000.00 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 Sewer Collections - Mo Bills $0.00 No Escalation $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Delinquent Penalties $0.00 No Escalation $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Industrial Waste Permits $40,000.00 No Escalation $40,000.00 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 Capital Facility Charges $35,000.00 No Escalation $35,000.00 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Total $3,457,036 $3,584,522 $3,716,598 $3,849,930 $3,981,867 $4,119,075 $4,261,800 $4,410,302 $4,564,852 $4,725,740 $4,893,271 OPEB Expense GASB 75 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retirement $164,698 $177,081 $190,394 $204,709 $220,099 $236,647 $254,439 $273,569 $294,137 $316,251 $340,028 Pension Expense GASB 68 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Retired Emp Health Ins $55,000 $60,285 $65,620 $69,807 $71,873 $74,001 $76,191 $78,447 $80,769 $83,160 $85,621 Administrative Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Salaries - Permanent Employees $403,710 $419,858 $436,653 $454,119 $472,284 $491,175 $510,822 $531,255 $552,505 $574,605 $597,589 Wages - Temporary and Part Time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Overtime $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
OASDI $29,684 $30,871 $32,106 $33,390 $34,726 $36,115 $37,560 $39,062 $40,625 $42,250 $43,940 Retirement $70,002 $75,265 $80,924 $87,008 $93,549 $100,583 $108,145 $116,276 $125,018 $134,417 $144,523 Health Insurance $71,031 $77,857 $84,747 $90,154 $92,822 $95,570 $98,399 $101,312 $104,311 $107,398 $110,578 Retired Emp Health Ins $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dental Insuraance $2,220 $2,433 $2,649 $2,818 $2,901 $2,987 $3,075 $3,166 $3,260 $3,357 $3,456 Retiree Health Savings $2,700 $2,959 $3,221 $3,427 $3,528 $3,633 $3,740 $3,851 $3,965 $4,082 $4,203 Workers Compensation Ins $29,484 $32,317 $35,177 $37,422 $38,529 $39,670 $40,844 $42,053 $43,298 $44,580 $45,899 Compensated Absences $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long Term Disability Insurance $843 $924 $1,006 $1,070 $1,102 $1,134 $1,168 $1,202 $1,238 $1,275 $1,312 Optical Insurance $740 $811 $883 $939 $967 $996 $1,025 $1,055 $1,087 $1,119 $1,152 Life Insurance $360 $395 $430 $457 $470 $484 $499 $513 $529 $544 $560 Wellness Benefit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Covid-19 Global Outbreak $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Professional Services $1,500 $1,548 $1,598 $1,649 $1,701 $1,756 $1,812 $1,870 $1,930 $1,992 $2,055 Utilities $850 $889 $929 $971 $1,015 $1,061 $1,110 $1,160 $1,213 $1,268 $1,325 Telephone $3,200 $3,345 $3,497 $3,656 $3,822 $3,996 $4,177 $4,367 $4,565 $4,772 $4,989 Rents and Leases $6,300 $6,502 $6,710 $6,924 $7,146 $7,375 $7,611 $7,854 $8,105 $8,365 $8,633 Contractual Services $141,401 $145,926 $150,595 $155,415 $160,388 $165,520 $170,817 $176,283 $181,924 $187,746 $193,753 Contractual Services $1,585,000 $1,635,720 $1,688,063 $1,742,081 $1,797,828 $1,855,358 $1,914,730 $1,976,001 $2,039,233 $2,104,488 $2,171,832 Professional Services $101,890 $105,150 $108,515 $111,988 $115,571 $119,270 $123,086 $127,025 $131,090 $135,285 $139,614 Office Supplies $1,700 $1,716 $1,731 $1,747 $1,763 $1,780 $1,796 $1,812 $1,829 $1,846 $1,863 Office Equipment Maintenance $3,680 $3,714 $3,748 $3,782 $3,817 $3,852 $3,888 $3,923 $3,960 $3,996 $4,033 Department Supplies $27,950 $28,207 $28,466 $28,728 $28,992 $29,259 $29,528 $29,799 $30,073 $30,350 $30,629 Equipment and Supplies $6,900 $6,963 $7,027 $7,092 $7,157 $7,223 $7,289 $7,357 $7,424 $7,492 $7,561 Department Equipment Maint $3,500 $3,532 $3,565 $3,597 $3,631 $3,664 $3,698 $3,732 $3,766 $3,800 $3,835 Uniform Allowance $3,600 $3,633 $3,667 $3,700 $3,734 $3,769 $3,803 $3,838 $3,873 $3,909 $3,945 Small Tools $5,000 $5,046 $5,092 $5,139 $5,186 $5,234 $5,282 $5,331 $5,380 $5,429 $5,479 Personnel Training $5,000 $5,160 $5,325 $5,496 $5,671 $5,853 $6,040 $6,233 $6,433 $6,639 $6,851 Vehicle Allow and Maint $900 $931 $963 $996 $1,030 $1,065 $1,102 $1,139 $1,178 $1,219 $1,261 Vehicle Operation and Maint $6,500 $6,723 $6,953 $7,191 $7,438 $7,693 $7,956 $8,229 $8,511 $8,802 $9,104 Fuel $4,000 $4,137 $4,279 $4,425 $4,577 $4,734 $4,896 $5,064 $5,237 $5,417 $5,603 Other Expense $86,000 $88,752 $91,592 $94,523 $97,548 $100,669 $103,891 $107,215 $110,646 $114,187 $117,841 Bad Debts Expense $25,000 $25,800 $26,626 $27,478 $28,357 $29,264 $30,201 $31,167 $32,165 $33,194 $34,256 Cost Allocation $376,294 $388,335 $400,762 $413,587 $426,821 $440,480 $454,575 $469,121 $484,133 $499,625 $515,613 PW Main An Repair Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Public Safety Radios/Body Cameras $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Liability Charge $29,481 $29,752 $30,026 $30,302 $30,580 $30,861 $31,145 $31,431 $31,720 $32,012 $32,306 Equip Maint Charge $12,910 $13,029 $13,148 $13,269 $13,391 $13,514 $13,639 $13,764 $13,891 $14,018 $14,147 Equip Replacement Charge $17,750 $17,913 $18,078 $18,244 $18,412 $18,581 $18,752 $18,924 $19,098 $19,274 $19,451 Facility Maintenance Charge $55,777 $56,290 $56,807 $57,330 $57,857 $58,389 $58,925 $59,467 $60,014 $60,566 $61,123 Capital Equipment $29,481 $29,752 $30,026 $30,302 $30,580 $30,861 $31,145 $31,431 $31,720 $32,012 $32,306 Transfer to General Fund $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Transfer to Facility Maint Fund $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Description Category Utility Included in DSCR FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 2021B Pension Obligation Principal Sewer No $41,850 $41,850 $41,850 $43,200 $43,200 $46,440 $46,440 $46,440 $46,440 $46,440 $52,650 2021B Pension Obligation Interest Sewer No $30,426 $30,029 $29,506 $28,862 $28,111 $25,287 $25,287 $25,287 $25,287 $25,287 $10,719 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 403 of 520 74 City of San Fernando – 2025 Water and Sewer Rate Study Capital Plan - Combined
Project System Type Funding Source FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Baldor TS175 Generator - Vehicle # 0015 Water General PAYGO $30,000 Ion Exchange Treatment Unit - Operating Costs Water Plant PAYGO $110,000 Wolfskill St, Pico Street to Kewen Street Water Mains PAYGO $120,000 Fourth Street 12" DIP, Harding Ave to Park Ave Water Mains PAYGO $495,000 Ion Exchange Treatment Unit - Operating Costs Water Plant PAYGO $110,000 Doosan P185WDO Air Compressor - Vehicle # 4244 Water General PAYGO $32,000 Ford F-650 Dump Truck (5 Yard) - Vehicle # 7218 Water General PAYGO $100,000 Chatsworth Dr, San Fernando Rd-South City Limit Water Mains PAYGO $390,000 Harps Street, 5th-DeGarmo - Water Mains PAYGO $115,000 Ion Exchange Treatment Unit - Operating Costs Water Plant PAYGO $110,000 Ford F-650 ValveTruck - Vehicle # 0172 Water General PAYGO $90,000 Ford F-650 Distribution Truck - Vehicle # 9977 Water General PAYGO $90,000 Balder TS175 Generator - Vehicle # 0263 Water General PAYGO $35,000 Knox Street - Orange Grove Avenue to Hubbard Street 6" ACP to 8" DIP Water Mains PAYGO $210,000 Phillippi Street- Orange Grove Avenue to Hubbard Street 6" ACP to 8" DIP Water Mains PAYGO $210,000 Chivers Street - Orange Grove Avenue to Hubbard Street 6" ACP to 8" DIP Water Mains PAYGO $210,000 Citywide CCTV of Sewer System Sewer General PAYGO $150,000 Fox Street - Celis Street to SCL Sewer Sewer Line PAYGO $717,421 Second - 65 ft. west towards Hubbard Sewer Sewer Line PAYGO $11,700 Pico - San Fernando Mission Blvd to 350 ft. east Sewer Sewer Line PAYGO $63,000 Citywide CCTV of Sewer System Sewer General PAYGO $150,000 Pico - Kalisher to 350 ft. east Sewer Sewer Line PAYGO $63,000 Kewen - S. Huntington to Workman Sewer Sewer Line PAYGO $63,900 Citywide CCTV of Sewer System Sewer General PAYGO $150,000 Kewen - 375 ft. west of San Fernando Mission Blvd Sewer Sewer Line PAYGO $67,500 Fox - Truman to Celis Sewer Sewer Line PAYGO $124,020
Citywide CCTV of Sewer System Sewer General PAYGO $150,000 Knox - Harding to 302 ft. east Sewer Sewer Line PAYGO $54,360 Kewen - 375 ft. west of San Fernando Mission Blvd Sewer Sewer Line PAYGO $67,500 Water Future Water General PAYGO $662,500 $74,000 $78,517 $0 $499,500 $811,000 $250,000 $1,000,000 Sewer Future Sewer General PAYGO $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Well 2 Blending Plant and associated CIPs Water Wells Grant $10,000,000 Glenoaks Blvd - Hubbard to Harding - 18" Stl Conc to 18" DIP - FY 2034 Water Mains PAYGO $750,000 Water Master Plan Water General PAYGO $80,000 Chevy 2500 HD - Vehicle 9503 Water General PAYGO $42,000 Hollister Street - Kalisher to S. Huntington - 6" Stl to 8" DIP #3 Water Mains PAYGO $150,000 N Workman Street - Second to Fourth Streets - 6" Stl to 8" DIP #1 Water Mains PAYGO $105,000 Celis Street - Wolfskill St to Brand Blvd - 6" Stl to 8" DIP #2 Water Mains PAYGO $150,000 S. Workman Street - Behind Store Fronts 4" CIP to 8" DIP Water Mains PAYGO $30,000 MWD Booster Pump # 4 FY 2030 Water Distribution PAYGO $23,983 Arroyo Avenue - Fifth St to Glenoaks Blvd FY 2028 Water Mains PAYGO $60,000 Harding Avenue - Glenpaks Blvd to Eighth St FY 2029 Water Mains PAYGO $790,000 Phillippi Street - Hubbard Ave to Oraange Grove Ave #7 Water Mains PAYGO $290,000 Griswold Ave - Fourth St. to Third St. 4" Stl to 8" DIP #4 Water Mains PAYGO $68,000 Alley e/o No.Maclay Ave. Fourth St. to Library St. 4" Stl to 8" CIP #5 Water Mains PAYGO $90,000 Hubbard St, Foothill Blvd to Dronfield Ave. - 18" Stl Conc to 18" DIP FY 2030 Water Mains PAYGO $407,500 Hagar Street, 5th to Glenoaks - 6" CIP to 8" DIP FY 2031 Water Mains PAYGO $187,500 Ion Exchange Treatment Unit - O&M (Contract No. 1729) Water Plant PAYGO $175,000 Ion Exchange Treatment Unit - Operating Costs Water Plant PAYGO $110,000 Hyster Forklift - Vehicle # 5289 Water General PAYGO $40,000 Fox Street - Pico to Hewitt - Loop/ New Installation - New 8" DIP Water Mains PAYGO $127,500 Newton Avenue - Fourth St. to Third St. 4" CIP to 8" DIP Water Mains PAYGO $68,000 $100,500 De Haven Street - N. Brand to Griswold St. 4" CIP to 8" DIP Water Mains PAYGO $100,500 De Garmo Street - N. Brand to Griswold St. - 6" CIP to 8" DIP Water Mains PAYGO $189,000 Alexander St - Fifth Street to Glenoaks Boulevard 6" CIP to 8" DIP Water Mains PAYGO Well 4A Rehabilitation FY 2030? Water Wells PAYGO $400,000 Water Department Office Expansion (120 Macneil) - Block Building FY 2030? Water General PAYGO $90,200 Brand Blvd, San Fernando Rd to South City Limit - Relocation of 8" DIP FY 2030? Water Mains PAYGO $520,000 RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 404 of 520 75 City of San Fernando – 2025 Water and Sewer Rate Study RES. NO. 8412
EXHIBIT "A"
October 6, 2025 CC Special & Regular Mtg Page 405 of 520

COUNCIL
MAYOR

MARY MENDOZA

VICE MAYOR

MARY SOLORIO

COUNCILMEMBER

JOEL FAJARDO

COUNCILMEMBER

VICTORIA GARCIA

COUNCILMEMBER
PATTY LÓPEZ
CITY MANAGER’S
OFFICE
117 MACNEIL STREET

SAN FERNANDO

CALIFORNIA
91340
(818) 898-1202
WWW.SFCITY.ORG

NOTICE OF PUBLIC HEARING
A public hearing regarding the City of San Fernando’s proposed water and sewer rate increases and changes in the rate calculation methodology will be held on:

DATE: Monday, October 6, 2025
TIME: 6:00 pm
LOCATION: City of San Fernando Council Chambers
117 Macneil Street, San Fernando, CA 91340
Written protests to the proposed rate increases will be accepted if received by the end of the public comment portion of a majority-protest public hearing to be held on October 6, 2025, as long as the protests conform to the Proposition 218 procedures provided in this notice.

A link to the rate study is available here: SFCITY.ORG/WaterSewerStudy.

A copy of the rate study is available at the front counter of City Hall, 117 Macneil Street, San Fernando, CA 91340.

Guidelines for the Submission and Tabulation of Protests and Objections can also be obtained from the City Clerk’s Office and be found on the City website at: SFCITY.ORG/WaterSewerStudy.

August 11, 2025
PROPOSITION 218 NOTICE OF PROPOSED WATER AND SEWER
RATE ADJUSTMENTS AND CHANGES TO THE CITY’S WATER AND

SEWER RATE CALCULATION METHODOLOGY

INTRODUCTION
The last rate study conducted by the City of San Fernando (City) occurred six years ago in 2019.

Since that time, regulations and costs for the City have changed considerably. The City, as required by Article XIIID of the California Constitution (Proposition 218), has conducted a new Water and Sewer Rate Study to review the existing rates, and to determine the estimated future costs of maintaining the City’s high level of service, meeting State regulations, and completing system-wide maintenance projects to cover the next five years (January 1, 2026 through December 31, 2030).

This 45-day notice is hereby given in accordance with Section 6(a) of Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act (Govt. Code Sections 53750 through 53758. The purpose of this notice is to provide you with information about the proposed rate increase and changes in methodology, and to inform you about your ability to oppose the rate increase by submitting a written protest prior to or during October 6, 2025 majority protest public hearing.

ATTACHMENT "C"
October 6, 2025 CC Special & Regular Mtg Page 406 of 520

NOTICE OF PUBLIC HEARING
Proposition 218 Notice of Proposed Water and Sewer Rate Adjustments and Changes to the City’s Water and Sewer Rate Calculation Methodology

Page 2 of 6 ends

San Fernando City CouncilOctober 6, 2025

San Fernando City Council
October 6, 2025