Agenda packet — San Fernando City Council, June 15, 2026 (part 2 of 4)

Conduit Debt: Conduit financing provides for the issuance of securities by a government agency to finance a project of a third party, such as a non-profit organization or other private entity. The City may sponsor conduit financings for those activities that have a general public purpose and are consistent with the City’s overall service and policy objectives. Unless a compelling public policy rationale exists, such conduit financings will not in any way pledge the City’s faith and credit.

Structure of Debt
Term of Debt: Debt will be structured with the goal of distributing the payments for the asset over its useful life so that benefits more closely match costs for both current and future residents. Borrowings by the City should be of a duration that does not exceed the useful life of the improvement that it finances. The standard term of long-term borrowing is typically fifteen to thirty years.

Rapidity of Debt Payment: Accelerated repayment schedules reduce debt burden faster and reduce total borrowing costs.

The Finance Department will amortize debt through the most financially advantageous debt structure and to the extent possible, match the City’s projected cash flow to the anticipated debt service payments. “Backloading” of debt service will be considered only when one or more of the following occur:

1. Natural disasters or extraordinary or unanticipated external factors make payments on the debt in early years prohibitive.

2. The benefits derived from the debt issuance can clearly be demonstrated to be greater in the future than in the present.

3. Such structuring is beneficial to the City’s aggregate overall debt payment schedule or achieves measurable interest savings.

4. Such structuring will allow debt service to more closely match project revenues during the early years of the project’s operation.

Level Payment: To the extent practical, bonds will be amortized on a level repayment basis, and revenue bonds will be amortized on a level repayment basis considering the forecasted available pledged revenues to achieve the lowest rates possible. Bond repayments should not increase on an annual basis in excess of two percent (2%) without a dedicated and supporting revenue funding stream.

Serial Bonds, Term Bonds, and Capital Appreciation Bonds: For each issuance, the City will select serial bonds or term bonds, or both. On the occasions where circumstances warrant, Capital Appreciation Bonds (CABs) may be used. The decision to use term, serial, or CAB bonds is driven based on market conditions.

Reserve Funds: The City shall strive to maintain the fund balance of governmental or proprietary funds (based on the security for the debt) at a level equal to or greater than the maximum annual debt service of existing obligations.

Section 3. Authority.

By order of City Council Motion (Item No. A-9), Policy adopted by the City Council on November 3, 2014.

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AGENDA REPORT
PUBLIC WORKS DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1222 WWW.SANFERNANDO.GOV REVIEW: ☒ City Clerk ☒ Admin. Services Director ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Bonnie Tam, Director of Public Works
Manuel Fabian, Civil Engineering Assistant II
Greg Steigerwald, Management Intern
Date: June 15, 2026
Subject: Consideration to Adopt a Resolution Accepting Senate Bill 1: The Road Repair and Accountability Act of 2017 Funds and Approving the Project List for Fiscal Year 2026-2027
RECOMMENDATION:

It is recommended that the City Council:
a. Adopt Resolution No. 8461 (Attachment “A”) accepting $623,804 in Senate Bill 1 (SB 1): The Road Repair and Accountability Act of 2017 Funds from the California Transportation Commission and approving the list of projects for Fiscal Year (FY) 2026-2027 totaling $1,575,447;
b. Accept $623,804 in revenues for FY 2026-2027 SB 1 and approve the proposed project list to be funded by SB 1 Local Streets and Roads Program (Exhibit “A” to Attachment “A”); and c. Authorize the City Manager, or designee, to submit all required documents to the California Transportation Commission.

BACKGROUND:

1. In April 2017, the State of California Legislature passed The Road Repair and Accountability Act of 2017 (SB 1), which was subsequently signed into law by Governor Jerry Brown. Since Fiscal Year 2017–2018, the City has participated in allocating these funds annually to support the Annual Street Resurfacing Project. The project encompasses various street repair and resurfacing improvements, with the specific work locations and scope of repairs determined each fiscal year

2. Since the inception of the RMRA of 2017, staff have provided the City Council with a project street list for approval each year to meet the SB 1 requirements. The actual revenue received June 15, 2026 Special & Regular CC Mtg Page 161 of 576
Consideration to Adopt a Resolution Accepting Senate Bill 1: The Road Repair and Accountability Act of 2017 Funds and Approving the Project List for Fiscal Year 2026-2027

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since inception in April 2017 through June 2026 is $4,197,776 at an average of $466,420 per year.

3. On August 4, 2025, the City Council adopted Resolution No. 8399 accepting $640,000 in SB 1 revenues and approving the list of $600,000 in projects for FY 2025-2026 funded by SB 1: The Road Repair and Accountability Act of 2017.

ANALYSIS:

SB 1 established the Road Maintenance and Rehabilitation Account (RMRA), designating funds for various transportation projects, including road maintenance, safety improvements, and active transportation enhancements. The funds are allocated to cities and counties based on a formula outlined in the Streets and Highways Code. To ensure accountability and transparency, cities are required to adopt a list of proposed projects annually and submit it to the California Transportation Commission (CTC) through the CalSMART system. The deadline to submit FY 2026-2027 project list and required information is July 1, 2026.

The City has utilized SB 1 funds to support the Annual Street Resurfacing Project, addressing the need for road maintenance and safety improvements. In addition to SB 1 funding, the project leverages Local Return funds such as Measure R, Measure M, and Proposition C funds to enhance the scope and impact of the resurfacing efforts.

There are four (4) streets identified to have low Pavement Condition Index (PCI) ratings and are recommended for reconstruction in the 2024 Pavement Management Program. The project encompasses four (4) streets: Jessie Street, Wolfskill Street, and O’Melveny Street are proposed for slurry seal treatment under the Annual Street Resurfacing Project - Phase 4, and North Workman Street is proposed for reconstruction under the Annual Street Resurfacing Project - Phase 5. Phase 4 is scheduled to begin construction in October 2026; Phase 5 is on track to begin construction in May 2027. Please see Attachment “B” for maps of Phase 4 and Phase 5 streets.

Recommended Use of FY 2026-2027 SB 1 Funds.

Staff recommends using funds towards the Phase 4 and Phase 5 of the Annual Street Resurfacing Project (Exhibit “A” to Attachment “A”). Given departmental transitions and staffing shortfalls, the project list includes the projects from both FY 2025-2026 and FY 2026-2027.

Phase 4 includes street segments carried over from FY 2025–2026 that are proposed for construction in FY 2026–2027, including Jessie Street from First Street to Fourth Street (PCI 61), Wolfskill Street from the South City Limits to First Street (PCI 28), and O’Melveny Street from S.

Brand Boulevard to San Fernando Mission Boulevard (PCI 47). The Pavement Condition Index (PCI) ratings indicate that these roadway segments range from fair to very poor condition and are candidates for pavement preservation treatment.

June 15, 2026 Special & Regular CC Mtg Page 162 of 576
Consideration to Adopt a Resolution Accepting Senate Bill 1: The Road Repair and Accountability Act of 2017 Funds and Approving the Project List for Fiscal Year 2026-2027

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The goal for Phase 4 is to apply a Three-Step Slurry Seal treatment to approximately two (2) miles of streets in very poor to fair condition, increasing the total miles of street slurry sealed since FY 2022-2023 from 32 to 34 miles. The treatment involves micro surfacing, chip seal, and a final slurry seal application to enhance pavement durability and longevity of the resurfaced streets.

The FY 2026-2027 proposed list of projects also includes Phase 5 to reconstruct the street segment from North Workman Street from Second Street to Fourth Street This segment has a PCI rating of 20, indicating very poor pavement condition.

The reconstruction involves removal of existing asphalt, grading of subsurface, and placement of new asphalt. The expected life of a newly paved road is 20-25 years. Additional work includes removal and replacement of curb and gutter, driveway approaches, cross gutters, striping and pavement markings and utility cover adjustments.

BUDGET IMPACT:

Estimated SB 1 revenues and expenditures of $623,804 have been adjusted within the proposed FY 2026- 2027 Capital Improvement Budget (Fund 025: Road Repair and Maintenance Fund).

Additionally, projected carryover funding totaling $950,018 from incomplete projects within the FY 2025 - 2026 Adopted Capital Improvement Budget which will be sufficient to financially satisfy Phases 4 and 5 of the Annual Street Resurfacing Projects (Exhibit “A” to Attachment “A”), totaling $1,575,447.

CONCLUSION:

It is recommended that City Council accept $623,804 in revenues for FY 2026-2027 SB 1 Funds and approve the proposed project list to be funded by the SB 1 Local Streets and Roads Program.

ATTACHMENTS:

A. Resolution No. 8461, including:

Exhibit “A”: Project List
B. San Fernando Phase 4 and Phase 5 Streets Maps
June 15, 2026 Special & Regular CC Mtg Page 163 of 576
ATTACHMENT “A”
RESOLUTION NO. 8461

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO, CALIFORNIA, ACCEPTING SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 FUNDS AND APPROVING THE LIST OF PROJECTS FOR FISCAL YEAR 2026- 2027
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $623,804 in RMRA funding in Fiscal Year 2026-2027 from SB 1; and
WHEREAS, this is the tenth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone robust public process to ensure the public input into our community’s transportation priorities and the project list; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate approximately two (2) miles of streets throughout the City this year and hundreds of similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

June 15, 2026 Special & Regular CC Mtg Page 164 of 576
RES. NO. 8461
2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN FERNANDO DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The list of newly proposed projects totaling $1,575,447 is recorded in Exhibit “A” attached to this resolution. Newly proposed projects will be funded in part or solely with Fiscal Year 2026- 2027 Road Maintenance and Rehabilitation Account revenues.

The miles (2) miles of streets listed in Exhibit “A” under newly proposed projects make up a portion of the City’s Annual Street Resurfacing Program. The program consists of repairs to: curb and gutter, asphalt dig outs, cross gutter plus street slurry, striping and pavement marking.

The anticipated year for construction is 2027 and the estimated useful life is seven (7) years for slurry seal application and 20-25 years for Reconstruction.

SECTION 3. The list of previously proposed and adopted projects is recorded in Exhibit “A”, attached to this resolution. Previously proposed and adopted projects may also utilize Fiscal Year 2026-2027 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues.

The two (2) miles of streets listed in Exhibit “A” under previously proposed and adopted projects make up a portion of the City’s Annual Street Resurfacing Program. The program consists of repairs to: curb and gutter, asphalt dig outs, cross gutter plus street slurry, striping and pavement marking.

The anticipated year for construction is 2027 and the estimated useful life is seven (7) years for slurry seal application and 20-25 years for Reconstruction.

SECTION 4. The City Clerk shall certify the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

PASSED, APPROVED, AND ADOPTED this 15th day of June 2026.

Joel Fajardo, Mayor of the City of San
Fernando, California
ATTEST:

Julia Fritz, City Clerk
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RES. NO. 8461
3 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. 8461 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 15th day of June, 2026, 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 June, 2026.

Julia Fritz, City Clerk
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RES. NO. 8461
EXHIBIT “A”
SENATE BILL 1 FUNDED PROJECT LIST
FISCAL YEAR 2026- 2027

PREVIOUSLY PROPOSED AND ADOPTED PROJECTS
PHASE IV: Primary List of Streets Covered by SB1 Funds
NAME FROM TO TRUE AREA APPROX $ PHASE
Wolfskill Street First Street Truman Street 14,500 $72,500 IV Wolfskill Street Truman Street Hollister Street 45,000 $225,000 IV Wolfskill Street Hollister Street South City Limit 59,330 $282,017 IV Jessie Street First Street Fourth Street 50,875 $254,375 IV O’Melveny Street S. Brand Boulevard S. Maclay Avenue 22,240 $111,200 IV O’Melveny Street S. Maclay Avenue San Fernando
Mission Boulevard 17,160 $85,800 IV
10% Contingency $104,555
Totals 209,105 $1,135,447
PHASE V: Primary List of Streets Covered by SB1 Funds
NAME FROM TO TRUE AREA APPROX $ PHASE
N Workman Street Second Street Fourth Street 24,150 $400,000 V 10% Contingency $40,000
Totals 24,150 $440,000
PHASE VI: Additional Streets to Consider for Three-Step Slurry Treatment NOT Covered by SB1 Funds
NAME FROM TO TRUE AREA APPROX $ PHASE
Hewitt Street San Fernando
Mission Boulevard
S Maclay Avenue 18,900 $94,500 IV
Coronel Street Chatsworth Drive Fox Street 35,310 $176,550 IV Griffith Street Carlisle Street S Maclay Avenue 16,995 $84,975 IV Hewitt Street Wolfskill Street Chatsworth Drive 18,900 $94,500 IV Celis Street Kalisher Street S Huntington Street 37,785 $188,925 IV Fermoore Street Second Street Fourth Street 23,975 $119,875 IV Fayecroft Street Cul-de-sac Woodcock Street 18,300 $91,500 IV Lashburn Street Jackman Avenue Pearwood Avenue 33,075 $165,375 IV Cork Street Lashburn Street Pearwood Avenue 26,325 $131,625 IV Jackman Avenue Hubbard Street Pearwood Avenue 59,400 $297,000 IV Totals 288,965 $1,444,825
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Date:

Project No.:

Plate
SAN FERNANDO PHASE 4

STREETS MAP
21-280-00
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Date:

Project No.:

Plate
San Fernando Phase 5
Street Map
June 10, 2026
1 LEGEND

RECONSTRUCTION
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AGENDA REPORT
CITY MANAGER’S OFFICE 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1220 WWW.SANFERNANDO.GOV REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Will Pettener, Assistant to the City Manager

Date: June 15, 2025
Subject: Consideration to Adopt a Resolution Approving Continued Participation in the Los Angeles Urban County Community Development Block Grant Program and Approving a Cooperation Agreement with the Los Angeles County Development Authority
RECOMMENDATION:

It is recommended that the City Council:
a. Adopt Resolution No. 8464 (Attachment “A”) approving continued participation in the Los Angeles Urban County Community Development Block Grant (CDBG) Program and approving a Cooperation Agreement (Exhibit “A” of Attachment “A” – Contract No. 2519) with the Los Angeles County Development Authority (LACDA); and
b. Authorize the City Manager, or designee, to make non-substantive changes and execute all related documents.

BACKGROUND:

1. In 1974, the Community Development Block Grant (CDBG) Program was enacted through the Housing and Community Development Act of 1974. The CDBG program is administered by the United States Department of Housing and Urban Development (HUD).

2. Since 1974, the City has received an annual allocation of CDBG funding from HUD through its participation in the Los Angeles Urban County CDBG Program administered by LACDA.

3. The City’s existing Cooperation Agreement with LACDA to participate in the Los Angeles Urban County CDBG Program expires on June 30, 2027 (Attachment “B” - Contract No. 2167).

June 15, 2026 Special & Regular CC Mtg Page 173 of 576
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ANALYSIS:

CDBG is a federal grant program to provide funding to states, cities, and counties to help improve the economic and physical development of their communities. CDBG funds are allocated to address a range of issues, such as affordable housing, public infrastructure, and job creation in low- to moderate-income areas.

With a population less than 50,000, the City participates in the Urban County CDBG Program through the LACDA. As the administrator of the Urban County CDBG Program, the LACDA is awarded and accepts funds directly from HUD on behalf of participating cities in Los Angeles County. LACDA also assumes responsibility for all obligations of an applicant under federal statues, including, but not limited to, performing the analysis of needs, setting objectives, development of community development and housing assistance plans, development of the consolidated plan, and the assurances of certificates.

Every three (3) years, the County of Los Angeles must re-qualify with HUD for entitlement status as an Urban County in order to participate in the CDBG program. The County is currently preparing to submit documentation for the next qualification period, which will begin on July 1, 2027, and end on June 30, 2030.

Under the City’s existing Agreement, which expires on June 30, 2027, the term automatically renews annually during the three-year cycle unless the City provides written notice at least 60-days prior to the end of the cycle. To participate in the new cycle, which will begin on July 1, 2027, the City Council must approve a resolution (Attachment “A”) electing to participate in the new qualification period and approve a Cooperation Agreement (Exhibit “A” of Attachment “A”) with LACDA.

The City’s ongoing participation in the CDBG Program will allow the City to continue to receive annual allocation of CDBG Program funds. Additionally, through participation in the Urban County program, the City automatically participates in the County HOME Investment Partnerships Program and the Assisted Housing Programs. Neither of these two (2) programs requires City staff support nor funding; the City simply agrees to providing information to interested residents regarding these County programs.

The remaining terms of the Agreement remain substantially unchanged from the prior agreement.

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BUDGET IMPACT:

The City anticipates receiving an allocation of approximately $171,988 per year in the new 3-year cycle (July 1, 2027 to June 30, 2030) of CDBG funds through the Urban County program administered by LACDA. Approval of the proposed Resolution and accompanying Cooperation Agreement will allow the City to continue to participate and receive future funding allocations from LACDA as part of the ongoing CDBG Program.

CONCLUSION:

Staff recommends that the City Council adopt a Resolution approving continued participation in the Los Angeles Urban County CDBG Program and approve a Cooperation Agreement with LACDA; and authorize the City Manager, or designee, to make non-substantive changes and execute all related documents.

ATTACHMENTS:

A. Resolution No. 8464, including:

Exhibit “A”: Contract No. 2519
B. Contract No. 2167
June 15, 2026 Special & Regular CC Mtg Page 175 of 576
ATTACHMENT “A”
RESOLUTION NO. 8464

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO,

CALIFORNIA, APPROVING CONTINUED PARTICIPATION IN THE LOS

ANGELES URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT

PROGRAM AND APPROVING A COOPERATION AGREEMENT WITH THE

COUNTY OF LOS ANGELES
WHEREAS, the City of San Fernando desires to continue its participation in the Los Angeles Urban County Community Development Block Grant (CDBG) Program for the qualification period beginning July 1, 2027 to and ending on June 30, 2030; and WHEREAS, the City of San Fernando City Council authorizes the execution of a Cooperation Agreement with the County of Los Angeles (Exhibit “A”) in order to receive CDBG funds.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN FERNANDO DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The City Council approves continued participation in the Los Angeles Urban County CDBG program and the Cooperation Agreement between the City of San Fernando and the County of Los Angeles for the time period of July 1, 2027 through June 30, 2030 and self-renewing annually during the three-year period.

SECTION 2. The City Council authorizes the City Manager or their designee to execute any and all documents necessary for participation in the Los Angeles Urban County CDBG Program on behalf of the City of San Fernando.

PASSED, APPROVED, AND ADOPTED this 15th day of June 2026.

Joel Fajardo, Mayor of the City of San
Fernando, California
ATTEST:

Julia Fritz, City Clerk
June 15, 2026 Special & Regular CC Mtg Page 176 of 576
RES. NO. 8464
2 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. 8464 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 15th day of June, 2026, 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 June, 2026.

Julia Fritz, City Clerk
June 15, 2026 Special & Regular CC Mtg Page 177 of 576
June 2026 1

COUNTY OF LOS ANGELES

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

HOME INVESTMENT PARTNERSHIPS PROGRAM

EMERGENCY SOLUTIONS GRANT PROGRAM

PARTICIPATING CITY

COOPERATION AGREEMENT
This COOPERATION AGREEMENT (“Agreement”) is being entered into on this 15TH day of JUNE, to be effective on the 1
st day of July 2027, by and between the CITY OF
SAN FERNANDO, hereinafter referred to as “City,” and the County of Los Angeles, by and through the Executive Director of the Los Angeles County Development Authority, hereinafter referred to as “County,” and shall remain in effect for the County's Consolidated Plan for Fiscal Years 2027-2029. The County and the City are collectively referred to as the “Parties” or individually “Party.”
WITNESSETH THAT:

WHEREAS, in 1974, the U.S. Congress enacted and the President signed a law entitled, the Housing and Community Development Act of 1974, as amended, herein called the “Act”; WHEREAS, the Parties desire to cooperate to undertake, or assist in undertaking, community development, community renewal of lower-income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act, the Cranston-Gonzalez National Affordable Housing Act (“NAHA”), and the U.S. Housing Act of 1937, as amended; WHEREAS, the Community Development Block Grant (“CDBG”) Program, the HOME Investment Partnerships (“HOME”) Program, and the Emergency Solutions Grant (“ESG”) Program are required to have an approved comprehensive housing strategy as authorized under NAHA;
WHEREAS, the County has requested of the U.S. Department of Housing and Urban Development, hereinafter referred to as “HUD”, that the County be designated as an urban county, hereinafter referred as to the “Los Angeles Urban County”; WHEREAS, the City has participated with the County in the Los Angeles Urban County Program and desires to renew its participation with the County in said Los Angeles Urban County Program for the County's Consolidated Plan for Fiscal Years 202 7-2029; WHEREAS, as the Los Angeles Urban County designee, the County will take responsibility and assume all obligations of an applicant under federal statutes, including: the analysis of needs, the setting of objectives, the preparation of community development and housing assistance plans, the consolidated plan, and the assurances of certifications; RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
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June 2026 2
WHEREAS, the terms and provisions of this Agreement are fully authorized under state and local law, and this Agreement provides full legal authority for the County to undertake, or assist in undertaking, essential community development and housing assistance activities, specifically urban renewal and publicly assisted housing; and WHEREAS, by executing this Agreement, the Parties hereby give notice of the intention to participate in the Los Angeles Urban County Program.

NOW, THEREFORE, the Parties agree as follows:

1. The City hereby authorizes the County to perform, or cause to be performed, those acts necessary or appropriate to implement the community development and housing assistance activities. Specifically urban renewal and publicly assisted housing, including, but not limited to, improvement or development of housing for persons of low- to moderate-income, and other community or urban renewal activities authorized under the Act for the City in the County's Consolidated Plan for Fiscal Years 2027-2029, which will be funded from the CDBG Program, and, where applicable HOME and ESG Programs, from federal annual appropriations and from any program income generated from the expenditure of such funds.

In the event this Agreement extends into succeeding fiscal years and funds have not been appropriated, this Agreement will automatically terminate as of June 30 of the then-current fiscal year. The County will endeavor to notify the City in writing within ten (10) days of receipt of non-appropriation notice.

2. This Agreement covers the following formula funding programs administered by HUD where the County is awarded and accepts funding directly from HUD: The CDBG Program, the HOME Program, and the ESG Program.

3. In executing this Agreement, the City understands the following:
a. The County has the final responsibility for selecting CDBG, and, where applicable, HOME and ESG, activities and submitting the Consolidated Plan to HUD.
b. The City is not eligible to apply for grants under the State CDBG (“Small Cities CDBG”) Program for appropriations for the County's Consolidated Plan for Fiscal Years 2027-2029.
c. The City June participate in the HOME Program only through the Los Angeles Urban County Program. Thus, even if the County does not receive a HOME formula allocation, the City cannot form a HOME consortium with other local governments.
d. The City may participate in the ESG Program only through the Los Angeles RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
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June 2026 3
Urban County Program.

4. The term of this Agreement shall be for the County's Consolidated Plan for Fiscal Years 2027-2029 and commence on July 1, 2027 through June 30, 2027 ("Urban County Term"). The Parties agree that they cannot terminate or withdraw from this Agreement while it remains in effect. The City provides written notice at least 60 days prior to June 30 2029 that it elects not to participate in the next urban county qualification period. Towards the end of the second year of the Urban County Term, the County will notify the City in writing of its right not to participate in the County's successive Consolidated Plan for the next three-year period.

The Parties agree to adopt amendments to this Agreement incorporating changes necessary to meet the requirements for cooperation agreements set forth in HUD’s Urban County Qualification for Participation Notice, prior to the subsequent threeyear extension of the term.

5. This Agreement shall be effective for the Urban County Term and for such period of time for the expenditure of all CDBG funds, or where applicable, HOME and ESG funds, allocated to the City under this Agreement and appropriations from any program income therefrom and for the completion of the funded activities. The Parties agree that they cannot terminate or withdraw from this Agreement while it remains in effect.

6. The Parties agree to cooperate to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act.

The Parties in the performance of this Agreement shall take all actions necessary or appropriate to assure compliance with the Los Angeles Urban County Program’s certification under Section 104(b) of Title I of the Act, as amended, that the grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964; and the implementing regulations at 24 CFR Part 1, and the Fair Housing Act, and the implementing regulations at 24 CFR Part 100, and will affirmatively further fair housing. See 24 CFR § 91.225(a) and Affirmatively Furthering Fair Housing Definitions and Certifications (86 FR 30779, June 10, 2021), to be codified at 24 CFR 5.151 and 5.152, available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoringaffirmatively-furthering-fair-housing-definitions-and-certifications. Furthermore, the Parties in the performance of this Agreement shall take all actions necessary or appropriate to assure compliance with Section 109 of Title I of the Act, and the implementing regulations at 24 CFR Part 6, which incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR Part 8, Title II of the Americans with Disabilities Act, and the implementing RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
June 15, 2026 Special & Regular CC Mtg Page 180 of 576
June 2026 4
regulations at 28 CFR Part 35, the Age Discrimination Act of 1975, and the implementing regulation at 24 CFR Part 146, and Section 3 of the Housing and Urban Development Act of 1968, and all other applicable laws and regulations.

The Parties agree that CDBG and, where applicable, HOME and ESG funding is prohibited for any activities in, or in support of, any cooperating City that does not affirmatively further fair housing within its own jurisdiction or that impedes the County’s action to comply with its fair housing certification. The City acknowledges and agrees to HUD’s 424-B Form, Assurances and Certifications.

7. Pursuant to 24 CFR § 570.501(b), the City is subject to all requirements applicable to subrecipients, including the requirement of a written agreement as set forth in 24 CFR § 570.503.

8. The City shall report to the County of any income generated by the use of CDBG and, where applicable, HOME and ESG funds received by the City. Any such program income, if applicable, must be remitted to the County within 30 days of receipt. Such program income may be used for eligible activities in accordance with all CDBG and, where applicable, HOME and ESG, requirements as may then apply.

9. The County shall be responsible for monitoring and reporting to HUD on the use of any program income; therefore, the City shall be required to maintain appropriate record keeping and reporting for this purpose.

10. The City may not sell, trade or otherwise transfer all or any portion of CDBG, and, where applicable, HOME and ESG funds to another metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG, and, where applicable, HOME and ESG funds in exchange for any other funds, credits or non-federal consideration, but must use such funds for activities eligible under Title I of the Act.

11. In the event of grant close-out or termination of this Agreement, any program income that is on hand or received subsequent to the close-out or change in status shall be paid to the County within 60 days after grant closeout or termination of this Agreement.

12. All program income generated from the disposition or transfer of real property acquired or improved by the City using CDBG and, where applicable, HOME and ESG, funds or program income, during the Urban County Term, shall be subject to all the terms and conditions of this Agreement.

RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
June 15, 2026 Special & Regular CC Mtg Page 181 of 576
June 2026 5
a. The County shall be notified by the City in writing of any modification or change in the use or disposition of such real property from that planned at the time of the acquisition or improvement. Such notification shall be made prior to the modification, change in use or disposition. b. If such real property is sold within five (5) years or transferred for a use which does not qualify as an eligible activity under CDBG and/or HOME and ESG regulations, the City shall reimburse to the County an amount equal to the pro-rata share of the current fair market value of the property or proceeds from the sales. The pro-rata share shall be calculated by multiplying the current market value by the percentage of the purchase price paid with CDBG funds or program income.

14. The City shall make available for inspection and audit to County’s and HUD’s representatives, upon request, at any time during the duration of this Agreement and for a period of five (5) years thereafter, all of its books and records relating to CDBG and, where applicable, HOME and ESG, program activities and income.

15. Following the end of the three-year reimbursable contract period and after resolving any financial or programmatic findings, if the City elects to leave the Los Angeles Urban County Program and is not eligible to become an entitlement city, the City will be unable to request that its allocation or any remaining balance be transferred to the City. Any remaining balance will be transferred to the funding pool of the Supervisorial District in which the City is located.

16. The City has adopted and is enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and
b. A policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.

17. The City shall provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the City’s workplace and specifying the actions that will be taken against employees for violation of such prohibition. b. Establishing an ongoing drug-free awareness program to inform employees about:
i. The dangers of drug abuse in the workplace;
RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
June 15, 2026 Special & Regular CC Mtg Page 182 of 576
June 2026 6
ii. The City’s policy of maintaining a drug-free workplace; iii. Any available drug counseling, rehabilitation, and employee assistance programs; and
iv. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.
c. Making it a requirement that each employee who will be engaged in the performance of the grant be given a copy of the statement required by paragraph “a” of this Section 17.
d. Notifying the employee in the statement required by paragraph “a” of this Section 17 that, as a condition of employment funded by the CDBG, and where applicable, HOME and ESG grant, the employee will:
i. Abide by the terms of the statement; and
ii. Notify the City in writing of his or her conviction of a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction.
e. Notifying the County in writing, within ten (10) calendar days after receiving notice under subparagraph d(ii) of this Section 17 from an employee or otherwise receiving actual notice of any such conviction; and the City must provide written notice, including position or title, of any City employees convicted of any criminal drug statute to every County officer or other designee who processed a CDBG, HOME, or ESG grant which funded any activity on which the convicted employee was working, unless HUD has designated an identification number(s) of each affected grant. f. Taking one (1) of the following actions, within 30 calendar days of receiving notice under subparagraph d(ii) of this Section 17, with respect to any employee who is so convicted:
i. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
ii. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purpose by a federal, state, local health, law enforcement, or other appropriate agency.
g. Making a good faith effort to continue to maintain a drug-free workplace through the implementation of paragraphs a, b, c, d, e, and f, of this Section

17. RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
June 15, 2026 Special & Regular CC Mtg Page 183 of 576
June 2026 7

18. This Agreement may be executed in any number of counterparts, each of which shall be effective only upon delivery, and therefore shall be deemed an original, and all of which shall constitute one and the same document, for the same effect as if all parties hereto had signed the same signature page.

The facsimile, email, or other electronically delivered signature of the Parties shall be deemed to constitute original signatures, and facsimile or electronic copies hereof shall be deemed to constitute duplicate originals.

RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
June 15, 2026 Special & Regular CC Mtg Page 184 of 576
IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Agreement to be subscribed by the Executive Director of the LACDA, and the City has subscribed the same through its duly authorized officers, on the day, month, and year first above written.

County Counsel Certification
The office of the County Counsel hereby certifies that the terms and provisions of this Agreement are fully authorized under state and local laws, and that the Agreement provides full legal authority for the County to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and public assisted housing.

By: ___________________________________ ___________________________ Principal Deputy County Counsel Date

COUNTY OF LOS ANGELES
By: ________________________________
EMILIO SALAS, Executive Director
Los Angeles County Development Authority
ATTEST:

City Clerk
By: ________________________________
APPROVED AS TO FORM:

DAWYN R. HARRISON
County Counsel
By: ________________________________

BEHNAZ TASHAKORIAN
Principal Deputy County Counsel

CITY OF SAN FERNANDO
By: ________________________________

MAYOR OR DESIGNEE
APPROVED AS TO FORM:

By: ________________________________

CITY ATTORNEY
RES. NO. 8464
EXHIBIT "A"
CONTRACT NO. 2519
June 15, 2026 Special & Regular CC Mtg Page 185 of 576
June 2023 1

COUNTY OF LOS ANGELES

COMMUNITY DEVELOPMENT BLOCK GRANT ENTITLEMENT PROGRAM

HOME INVESTMENT PARTNERSHIPS PROGRAM

EMERGENCY SOLUTIONS GRANT PROGRAM

PARTICIPATING CITY

COOPERATION AGREEMENT
This COOPERATION AGREEMENT (“Agreement”) is being entered into on this 14th day of JULY 2023, to be effective on the 1st day of July 2024, by and between the CITY OF SAN FERNANDO, hereinafter referred to as “City,” and the County of Los Angeles, by and through the Executive Director of the Los Angeles County Development Authority, hereinafter referred to as “County,” and shall remain in effect for the County's Consolidated Plan for Fiscal Years 2024-2026. The County and the City are collectively referred to as the “Parties” or individually “Party.”
WITNESSETH THAT:

WHEREAS, in 1974, the U.S. Congress enacted and the President signed a law entitled, the Housing and Community Development Act of 1974, as amended, herein called the “Act”; WHEREAS, the Parties desire to cooperate to undertake, or assist in undertaking, community development, community renewal of lower-income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act, the Cranston-Gonzalez National Affordable Housing Act (“NAHA”), and the U.S. Housing Act of 1937, as amended; WHEREAS, the Community Development Block Grant (“CDBG”) Entitlement Program, the HOME Investment Partnerships (“HOME”) Program, and the Emergency Solutions Grant (“ESG”) Program are required to have an approved comprehensive housing strategy as authorized under NAHA;
WHEREAS, the County has requested of the U.S. Department of Housing and Urban Development, hereinafter referred to as “HUD”, that the County be designated as an urban county, the program hereinafter referred as to the “Los Angeles Urban County Program”; WHEREAS, the City has participated with the County in the Los Angeles Urban County Program and desires to renew its participation with the County in said Los Angeles Urban County Program for the County's Consolidated Plan for Fiscal Years 2024-2026; WHEREAS, as the Los Angeles Urban County designee, the County will take responsibility and assume all obligations of an applicant under federal statutes, including: the analysis of needs, the setting of objectives, the preparation of community development and housing assistance plans, the consolidated plan, and the assurances of certifications; WHEREAS, the terms and provisions of this Agreement are fully authorized under state CONTRACT NO. 2167 June 15, 2026 Special & Regular CC Mtg ATTACHMENT "B"

Page 186 of 576 ends

June 2023 2
and local law, and this Agreement provides full legal authority for the County to undertake, or assist in undertaking, essential community development and housing assistance activities, specifically urban renewal and publicly assisted housing; and WHEREAS, by executing this Agreement, the Parties hereby give notice of the intention to participate in the Los Angeles Urban County Program.

NOW, THEREFORE, the Parties agree as follows:

1. The City hereby authorizes the County to perform, or cause to be performed, those acts necessary or appropriate to implement the community development and housing assistance activities. Specifically urban renewal and publicly assisted housing, including, but not limited to, improvement or development of housing for persons of low- to moderate-income, and other community or urban renewal activities authorized under the Act for the City in the County's Consolidated Plan for Fiscal Years 2024-2026, which will be funded from the CDBG Entitlement Program, and, where applicable HOME and ESG Programs, from federal annual appropriations and from any program income generated from the expenditure of such funds.

In the event this Agreement extends into succeeding fiscal years and funds have not been appropriated, this Agreement will automatically terminate as of June 30 of the then-current fiscal year. The County will notify the City in writing within ten (10) days of receipt of non-appropriation notice.

2. This Agreement covers the following formula funding programs administered by HUD where the County is awarded and accepts funding directly from HUD: The CDBG Entitlement Program, the HOME Program, and the ESG Program.

3. In executing this Agreement, the City understands the following:
a. The County has the final responsibility for selecting CDBG, and, where applicable, HOME and ESG, activities and submitting the Consolidated Plan to HUD.
b. The City is not eligible for grants under the State CDBG (“Small Cities CDBG”) Program per Section V(D)(1 of CPD Notice 2023-03 (“the Notice”) during the period in which it participates in the Los Angeles Urban County Program.
c. The City may participate in the HOME Program only through the Los Angeles Urban County Program. Thus, even if the County does not receive a HOME formula allocation, the City cannot form a HOME consortium with other local governments.
d. The City may participate in the ESG Program only through the Los Angeles Urban County Program.

CONTRACT NO. 2167 June 15, 2026 Special & Regular CC Mtg Page 187 of 576 June 2023 3

4. The term of this Agreement shall be for the County's Consolidated Plan for Fiscal Years 2024-2026 and commence on July 1, 2024 through June 30, 2027 ("Urban County Term"). The Parties agree that they cannot terminate or withdraw from this Agreement while it remains in effect. Towards the end of the second year of the Urban County Term, the County will notify the City in writing of its right not to participate in the County's successive Consolidated Plan for the next three-year period.

The Parties agree that they cannot terminate or withdraw from this Agreement while it remains in effect.

6. The Parties agree to cooperate to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderateincomes, and other community or urban renewal activities authorized by the Act.

Furthermore, the Parties in the performance of this Agreement shall take all actions necessary or appropriate to assure compliance with Section 109 of Title I of the Act, and the implementing regulations at 24 CFR Part 6, which incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR Part 8, Title II of the Americans with Disabilities Act, and the implementing regulations at 28 CFR Part 35, the Age Discrimination Act of 1975, and the implementing regulation at 24 CFR Part 146, and Section 3 of the Housing and Urban Development Act of 1968, and all other applicable laws and regulations.

CONTRACT NO. 2167 June 15, 2026 Special & Regular CC Mtg Page 188 of 576 June 2023 4
The Parties agree that CDBG and, where applicable, HOME and ESG funding is prohibited for any activities in, or in support of, any cooperating City that does not affirmatively further fair housing within its own jurisdiction or that impedes the County’s action to comply with its fair housing certification. The City acknowledges and agrees to HUD’s 424-B Form, Assurances and Certifications.

7. Pursuant to 24 CFR § 570.501(b), the City is subject to all requirements applicable to subrecipients, including the requirement of a written agreement as set forth in 24 CFR § 570.503.

13. Any real property which is acquired or improved by the City during the term of this Agreement, in whole or in part, using CDBG and/or HOME and ESG funds or program income in excess of $25,000, shall be subject to the following standards:
a. The County shall be notified by the City in writing of any modification or change in the use or disposition of such real property from that planned at CONTRACT NO. 2167 June 15, 2026 Special & Regular CC Mtg Page 189 of 576 June 2023 5
the time of the acquisition or improvement. Such notification shall be made prior to the modification, change in use or disposition. b. If such real property is sold within five (5) years or transferred for a use which does not qualify as an eligible activity under CDBG and/or HOME and ESG regulations, the City shall reimburse to the County an amount equal to the pro-rata share of the current fair market value of the property or proceeds from the sales. The pro-rata share shall be calculated by multiplying the current market value by the percentage of the purchase price paid with CDBG funds or program income.

14. The City shall make available for inspection and audit to County’s and HUD’s representatives, upon request, at any time during the duration of this Agreement and for a period of five (5) years thereafter, all of its books and records relating to CDBG Entitlement Program and, where applicable, HOME and ESG programs’ activities and income.

16. The City has adopted and is enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.

17. The City shall provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the City’s workplace and specifying the actions that will be taken against employees for violation of such prohibition. b. Establishing an ongoing drug-free awareness program to inform employees about:
i. The dangers of drug abuse in the workplace;
ii. The City’s policy of maintaining a drug-free workplace; CONTRACT NO. 2167 June 15, 2026 Special & Regular CC Mtg Page 190 of 576 June 2023 6
iii. Any available drug counseling, rehabilitation, and employee assistance programs; and
iv. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.
c. Making it a requirement that each employee who will be engaged in the performance of the grant be given a copy of the statement required by paragraph “a” of this Section 17.
d. Notifying the employee in the statement required by paragraph “a” of this Section 17 that, as a condition of employment funded by the CDBG, and where applicable, HOME and ESG grant, the employee will:
i. Abide by the terms of the statement; and
ii. Notify the City in writing of his or her conviction of a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction.
e. Notifying the County in writing, within ten (10) calendar days after receiving notice under subparagraph d(ii) of this Section 17 from an employee or otherwise receiving actual notice of any such conviction; and the City must provide written notice, including position or title, of any City employees convicted of any criminal drug statute to every County officer or other designee who processed a CDBG, HOME, or ESG grant which funded any activity on which the convicted employee was working, unless HUD has designated an identification number(s) of each affected grant.
f. Taking one (1) of the following actions, within 30 calendar days of receiving notice under subparagraph d(ii) of this Section 17, with respect to any employee who is so convicted:
i. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
ii. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purpose by a federal, state, local health, law enforcement, or other appropriate agency.
g. Making a good faith effort to continue to maintain a drug-free workplace through the implementation of paragraphs a, b, c, d, e, and f, of this Section 17.

CONTRACT NO. 2167 June 15, 2026 Special & Regular CC Mtg Page 191 of 576 June 2023 7

CONTRACT NO. 2167 June 15, 2026 Special & Regular CC Mtg Page 192 of 576 S-1
IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Agreement to be subscribed by the Executive Director of the LACDA, and the City has subscribed the same through its duly authorized officers, on the day, month, and year first above written.

By: ___________________________________ ___________________________ Principal Deputy County Counsel Date

COUNTY OF LOS ANGELES
By: ________________________________
EMILIO SALAS, Executive Director
Los Angeles County Development Authority
APPROVED AS TO FORM:

DAWYN R. HARRISON
County Counsel
By: ________________________________

BEHNAZ TASHAKORIAN
Principal Deputy County Counsel
CONTRACT NO. 2167
June 29, 2023
June 15, 2026 Special & Regular CC Mtg Page 193 of 576
CONTRACT NO. 2167
IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Agreement to be subscribed by the Executive Director of the LACDA. and the City has subscribed the same through its duly authorized officers, on the day. month, and year Hrst above written.

CITY OF SAN FERNANDO
By:
n/ay3roR"designe (Signature)
Nick Kimball, City Manager
Print Name. Title
ATTEST:

City Clerk
By:

Fritz, City^Clerk
APPROVED AS TO FORM:
ssistant City Attorney
S-2
KAGMU COMMON\GI’PA\GPAUIrban County Qualification Docs\2024-2()26Qualification Period\Documents\nralt.s\l-'Y 2024-2026 Participating City Cooperation AgreeniciU 5-23-23 SignaturcPg v I doc June 15, 2026 Special & Regular CC Mtg Page 194 of 576
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AGENDA REPORT
ADMINISTRATION DEPARTMENT 117 MACNEIL ST, SAN FERNANDO, CA 91340 (818) 898-1202 WWW.SANFERNANDO.GOV REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Julia Fritz, City Clerk

Date: June 15, 2026
Subject: Consideration to Adopt a Resolution Approving 2026 Updates to Councilmember Expense Reimbursement Policy; and City Employee Expense Reimbursement Policy
RECOMMENDATION:

It is recommended that the City Council:
a. Adopt Resolution No. 8455 (Attachment “A”), approving updates to City Policies and Procedures to include revisions to two (2) existing City policies: Councilmember Expense Reimbursement Policy (Exhibit “A” of Attachment “A”); and City Employee Expense Reimbursement Policy (Exhibit “B” of Attachment “A”); and b. Authorize the City Manager to take related actions to execute and implement the updated policies and procedures.

BACKGROUND:

Travel Policy for City Councilmembers, Elected Officials and Commissioners

1. On August 15, 1993, the City Council approved a travel policy establishing reimbursements related to traveling on City business, to attend conferences, seminars, training sessions or local events, including attending meetings outside of the City to conduct City business.

2. On April 15, 1996, the City Council amended the policy to include updates to the mileage reimbursement rate from .25 cents to .405 cents.

City Employee Travel Policy.

1. On August 15, 1983, the City Council approved a Travel Policy establishing travel reimbursement policies for all City employees when traveling on City business, attending conferences, seminars or training sessions pertaining to transportation, lodging, meals and incidental expenses.

2. On April 10, 1995, the City Council amended the policy to include updates to the mileage reimbursement rate from .25 cents to .405 cents.

June 15, 2026 Special & Regular CC Mtg Page 197 of 576
Consideration to Adopt a Resolution Approving 2026 Updates to Councilmember Expense Reimbursement Policy and City Employee Expense Reimbursement Policy

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ANALYSIS:

City policies and procedures ensure consistency, fairness, transparency, and efficiency in how the agency operates and delivers services to the public. Clear policies help define expectations for employees, residents, and businesses, while procedures provide step-by-step guidance to implement those policies properly. Together, they reduce the risk of arbitrary decisions, support legal compliance, promote accountability, and help protect the City from liability. Clear policies and procedures also create a stable foundation for managing resources, improving public trust, and adapting to change effectively.

Periodic reviews and updates are necessary to align with evolving best practices, changes in laws, and organizational needs. Following a detailed review of the existing Policies and Procedures Manual, staff identified several key areas requiring updates. The updates will be completed in phases, including policy updates for City Council approval at this meeting. Staff is additionally planning to return with updates to Financial Policies and Procedures in the Fiscal Year (FY) 2026- 2027.

The following is a summary of the proposed Councilmember Expense Reimbursement Policy updates proposed at this meeting. A detailed list of the updates is included as Attachment “B”:
• Reclassified Commissioners expense reimbursement to the proposed updated City Employee Expense Reimbursement Policy.
• Per diem rates for meal reimbursements to be based on U.S. General Services Administration (GSA).
• Clarification of authorized and prohibited expenditures, activities, and reimbursement eligibility.
• Updates to travel allocation procedures and City-directed travel guidelines. • Revised standards for transportation, lodging, and meal reimbursements. • Enhanced expense reporting, documentation, and reimbursement requirements. • Requirement for Councilmembers to report on reimbursable travel and event attendance. • Clarification of legal compliance, public disclosure requirements, and penalties for policy violations.

This policy will repeal and replace the “Travel Policy for City Councilmembers, Elected Officials and Commissioners” which was last adopted on April 15, 1996 (Attachment “D”). The new Councilmember Expense Reimbursement policy does not include expense reimbursements for Commissioners. Commissioner positions are Councilmember appointed positions and better aligns with the City Employee Expense Reimbursement Policy as defined in Exhibit “B” of Attachment “A”.

The following is a summary of the proposed City Employee Expense Reimbursement Policy updates. A detailed list of the updates is included as Attachment “C”:
• Commissioner expense reimbursements were removed from the Councilmember Travel Policy to better align with employee reimbursement practices, as Commissioners are not elected officials.

June 15, 2026 Special & Regular CC Mtg Page 198 of 576
Consideration to Adopt a Resolution Approving 2026 Updates to Councilmember Expense Reimbursement Policy and City Employee Expense Reimbursement Policy

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• Per diem rates for meal reimbursements to be based on U.S. General Services Administration (GSA).
• Clarifies policy purpose, definitions, and eligible City business activities for expense reimbursement
• Establishment of clearer standards for allowable and non-reimbursable expenses. • Requirements to utilize the most economical and cost-effective mode of transportation. • Additional guidance regarding airfare, vehicle use, rental cars, rideshare services, parking, baggage fees, and internet expenses.
• Clarification of lodging eligibility requirements and reimbursement limitations for conferences, meetings, and overnight travel.

This policy will repeal and replace the “Travel Policy” which was last adopted on April 10, 1995 (Attachment “E”).

The proposed updates were developed by the City Attorney to ensure legal compliance and operational efficiency.

BUDGET IMPACT:

The proposed updates to City Policies and Procedures have minimal direct budget impact which will be absorbed within existing departmental budgets.

CONCLUSION:

It is recommended that the City Council adopt a Resolution approving updates to the City Policies and Procedures to include revisions to two (2) existing City policies: City Employee Expense Reimbursement Policy; and Councilmember Expense Reimbursement Policy; and authorize the City Manager to take related actions to execute and implement the updated policies and procedures.

ATTACHMENTS:

A. Resolution No. 8455, including:

Exhibit “A”: Councilmember Expense Reimbursement Policy, including:

Exhibit “1”: List of Pre-Approved Organizations & Events Exhibit “2”: Per Diem and Meal Reimbursement Schedule
Exhibit “B”: City Employee and Commissioner Expense Reimbursement Policy, including:

Exhibit “1”: List of Organizations & Events Eligible for Reimbursement & Per Diem/Meal Reimbursement Schedule
B. Proposed Updates to the Councilmember Reimbursement Policy C. Proposed Updates to the City Employee Reimbursement Policy D. Outdated Policy being Replaced - Travel Policy for City Councilmembers, Elected Officials and Commissioners
E. Outdated Policy being Replaced - City Employee Travel Policy June 15, 2026 Special & Regular CC Mtg Page 199 of 576
ATTACHMENT “A”
RESOLUTION NO. 8455

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO,

CALIFORNIA, APPROVING AN UPDATED COUNCILMEBER EXPENSE

REIMBURSEMENT POLICY AND AN UPDATED CITY EMPLOYEE EXPENSE

REIMBURSEMENT POLICY
WHEREAS, On July 1, 2025, City Council adopted the Fiscal Year (FY) 2025-2026 Budget which included review and update of City policies and procedures as part of the work plan for the Administrative Services Department; and
WHEREAS, periodic reviews and updates are necessary to align with evolving best practices, changes in laws, and organizational needs; and WHEREAS, the City Manager seeks to establish revisions and additions to City Policies and Procedures through City Council approval;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN FERNANDO, DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The City Council hereby establishes the Councilmember Expense Reimbursement and City Employee Expense Reimbursement Policies, attached hereto as Exhibit “A” and Exhibit “B” and are incorporated herein by reference.

SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

PASSED, APPROVED, AND ADOPTED THIS 15th day of June 2026.

Joel Fajardo, Mayor of the City of
San Fernando, California
ATTEST:

Julia Fritz, City Clerk
June 15, 2026 Special & Regular CC Mtg Page 200 of 576
RES. NO. 8455
2 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. 8455, 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 15th day of June 2026, 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 June 2026.

POLICY/PROCEDURE

SUBJECT ISSUANCE

COUNCILMEMBER EXPENSE REIMBURSEMENT
POLICY

ORIGINAL DATE
April 15, 1996

EFFECTIVE
April 15, 1996

CURRENT DATE
June 15, 2026

EFFECTIVE
June 15, 2026
CATEGORY POLICY NO. SUPERSEDES
CITY COUNCIL CC2026-002 April 15, 1996

MANAGEMENT POLICY/PROCEDURES
SECTION I. DECLARATION OF POLICY AND PURPOSE
A. Each member of the San Fernando City Council (“Councilmember”) is responsible for promoting and protecting health, safety, and welfare of the San Fernando public. Among other things, these duties may require Councilmembers to:

1. Discuss the City’s concerns with county, state, federal and regional Councilmembers;

2. Participate in regional, county, state and national organizations that affect the City’s interests;

3. Attend educational seminars designed to improve Councilmembers’ skills and knowledge in connection with the discharge of their official duties;

4. Promote public service and engagement;

5. Attend meetings, ceremonial events and other activities sponsored by San Fernando constituents, San Fernando neighborhood groups, organizations that represent the interests of the San Fernando business community and other similar groups that are located within or specifically serve or advocate for San Fernando residents and businesses;

6. Promote economic development in the City; and

7. Meet with San Fernando constituents, San Fernando business owners and other San Fernando stakeholder groups.

B. It is in the public interest to reimburse Councilmembers’ expenses incurred in connection with these activities consistent with the provisions of this Policy.

C. This policy is adopted to comply with Government Code §§ 53232.2 and 53232.3. This policy shall be known as the San Fernando Councilmember Expense Reimbursement Policy (referred to herein as the “Policy”) and shall apply to all reimbursement for expenses associated with City business including, without limitation, travel, meals and mileage. This Policy covers Councilmembers who receive any type of compensation, salary, or stipend or reimbursement for actual and necessary expenses incurred in the performance of official duties.

Employees are covered by a separate employee reimbursement policy.

June 15, 2026 Special & Regular CC Mtg Page 202 of 576

POLICY/PROCEDURE

COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-002 (06/15/2026) | Page 2 of 9 RES. NO. 8455
EXHIBIT “A”
SECTION II. DEFINITIONS
Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Policy. Words and phrases not given a meaning by this Policy have the meaning set forth in Government Code § 53232.

A. “Actual and necessary” means expenses that were incurred due to practical necessity, not mere convenience, based on prevailing business practices and consistent with this Policy.

B. “Councilmember” means a member of the San Fernando City Council, the City’s five-member legislative body.

C. “Reimbursement” means all forms of payment for expenses incurred by Councilmembers in the course of their official duties whether paid directly by the City or advanced by Councilmembers with personal funds and later reimbursed from City funds.

SECTION III. CITY BUSINESS – AUTHORIZED ACTIVITIES
Actual and necessary expenses incurred while engaging in the following City business activities are generally authorized if all requirements of this Policy are satisfied:

A. Communicating with representatives of state, national and/or county/other regional governmental bodies/agencies (i) on policy positions adopted by such bodies/agencies that affect the City, its businesses, residents and other community stakeholders; and/or (ii) on City-adopted policy positions affecting the same; B. Attending educational seminars or conferences designed to improve a Councilmember’s skill and information levels in connection with the discharge of their official duties, or conferences for the purpose of attracting or retaining businesses in the City;
C. Participating in state, national or county/other regional organizations whose activities affect the City’s interests;
D. Attending City-sponsored or City-organized events and meetings; E. Attending meetings with constituents, neighborhood groups, business organizations, and others regarding matters of City business;
F. Appearing as a witness or the City’s designated representative in legal proceedings in which the City is a party; G. Attendance at ceremonial events celebrating or honoring the San Fernando community that are organized or co-sponsored by the City or by public agencies or other organizations that serve or advocate for City residents or businesses or that promote City’s culture, history or celebrated residents and institutions; H. Attending meetings and events on the List of Pre-Approved Organizations & Events which is attached hereto as Exhibit “1”. The City Councilmembers are allowed to attend local conferences or educational seminars that June 15, 2026 Special & Regular CC Mtg Page 203 of 576

POLICY/PROCEDURE

COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-002 (06/15/2026) | Page 3 of 9 RES. NO. 8455
EXHIBIT “A”
are not on the list below using City funds as long as the registration fee and City costs incurred are less than $500;
I. The City Councilmembers are also allowed to attend meetings, events, and activities at the invitation of regional, state, and national government leadership (such as State Governors, State Legislatures, Congress, or the White House) when it is on official City business related to City-adopted policies and core values.

The following applies to travel to international locations:

A. Councilmembers will be reimbursed for all business-related transportation, lodging, meals and incidental expenses;
B. Meals and incidental expenses will be reimbursed at the current per diem rate established by the U.S. General Services Administration (WWW.GSA.GOV) based on the limit for the City or County to which they are traveling;
C. All international travel requires prior approval by the City Council.

The following expenditures require prior approval by the City Council:

A. Expenditures incurred in connection with activities or events not listed in this Policy; B. Expenditures incurred in connection with activities or events not listed in the City Council approved “List of Pre-Approved Organizations & Events”;
C. Expenditures foreseeably exceeding the allocated travel funds for a given fiscal year.

Councilmembers may, if they choose, use personal funds to pay for expenses that exceed reimbursable rates.

SECTION IV. UNAUTHORIZED EXPENSES
The City will not reimburse Councilmembers for expenses incurred outside the scope of their official duties including, but not limited to, the following examples:

A. The personal portion of any trip. For example, if a Councilmember elects to travel to an event in advance or stay longer on personal business or for personal leisure, the City need only reimburse for roundtrip travel costs and costs incurred during the event’s duration;
B. Political or charitable contributions or events;
C. Expenses for family members (e.g., spouse, partner, children) and/or other travelling companions accompanying a Councilmember on City-related business;
D. Entertainment expenses, including theater, movies (either in-room or at the theater), sporting events (including gym, massage and/or golf related expenses), or other cultural events; June 15, 2026 Special & Regular CC Mtg Page 204 of 576

POLICY/PROCEDURE

COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-002 (06/15/2026) | Page 4 of 9 RES. NO. 8455
EXHIBIT “A”
E. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance, fuel, or EV charging; F. Personal losses incurred while on City business except as provided in the City’s insurance authority’s memorandum of coverage;
G. Expenses for which a Councilmember receives reimbursement from another agency; H. Alcohol/personal bar expenses;
I. Restaurant meals exclusively among Councilmembers and/or employees. (The foregoing does not, however, include (i) ceremonial cake or similar ceremonial food intended to collectively celebrate a specific occasion such as a birthday or retirement; (ii) when food is provided by the City to Councilmembers and/or employees collectively at a City facility in advance of an official Brown Act City meeting expected to run into the late evening or more than two hours and over a mealtime; or (iii) other food that may be provided to officials and the public at an official Brown Act City meeting. All such purchases referenced in this subsection (I) parenthetical to be approved in advance by the City Manager or their designee.); J. Gala events that are not organized or co-sponsored by the City or by other public agencies whose jurisdiction includes the City or by an organization that operates within the City or that serves or advocates for residents and/or businesses of the City. (For purposes of this Policy a “gala event” is a social gathering that primarily features entertainment and/or dancing);
K. Expenses incurred in violation of federal or state law, or City ordinance or policies.

The City will not reimburse Councilmembers for expenses that exceed budget limits for the category of expense.

Any questions regarding the propriety of a particular type of expense should be resolved by the City Council before the expense is incurred.

SECTION V. COUNCILMEMBER TRAVEL ALLOCATION
A. Annual Allocation. Councilmember will be allocated a travel budget for each fiscal year and any unused portion will be credited back to the City’s General Fund and will not be rolled-over. A Councilmember may donate funds from his or her fiscal year travel budget for use by any one of the Commissioners appointed by the Councilmember, subject to all of the same rules, restrictions and reporting requirements applicable to Councilmembers. In addition, a Councilmember may donate funds from his or her fiscal year travel budget for use by another Councilmember, subject to all of the same rules, restrictions and reporting requirements.

In the event a Councilmember’s service on the City Council ends before all funds have been expended, the unused balance shall be credited back to the City’s General Fund and will not be rolled-over to any City Council successor. Newly sworn Councilmembers will be allocated a sum equal to the allocation sum granted to all Councilmembers for the fiscal year in which the new Councilmember is sworn in, prorated from the fiscal year date the Councilmember is sworn in.

B. If the City Council directs an individual Councilmembers to attend a specific meeting or event to represent the City Council, the travel costs will not be credited against the individual Councilmember’s allocation referenced under paragraphs (A) of this section, above. Such City Council direction must take place at a June 15, 2026 Special & Regular CC Mtg Page 205 of 576

POLICY/PROCEDURE

COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-002 (06/15/2026) | Page 5 of 9 RES. NO. 8455
EXHIBIT “A”
regular City Council meeting and agenda materials in support of such direction must delineate where the costs will be charged.

C. For newly elected Councilmembers, reimbursement of travel costs associated with attendance at the League of California Cities New Mayors and Councilmembers Academy will not count against the Councilmembers allocation referenced under paragraph (A) of this section above.

D. As more specifically provided under this Policy below, Councilmembers are expected to be thrifty and prudent as possible when traveling at City expense. The City has only a limited amount of funds available for travel expenses. To stretch the use of travel funds, Councilmembers should use the most economic means available and refrain from lavish and expensive meals or accommodation.

SECTION VI. TRANSPORTATION
A. Generally. Councilmembers must use the most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements, using a direct and time-efficient route.

Government and group rates must be used when available.

B. Airfare. The lowest possible airfare, as reflected by a comparison of airfares offered directly by commercial airlines or fare comparison websites, shall be used when purchasing flights; at times, baggage fees may be used to compare the total cost of the airfare. However, the City will allow for Southwest “anytime” flights when the flight is booked in advance, due to its flexibility for changes and cancelations. No Councilmember shall be reimbursed for the cost of upgrades to class or seating type for which a fare higher than basic, economy, or coach class is charged. Airfare expenses should be prepaid directly by the City where possible.

C. Automobile.

1. Automobile mileage is reimbursed at Internal Revenue Service rates presently in effect (see WWW.IRS.GOV). For 2026 the rate is 0.725 cents per mile. These rates are designed to compensate the driver for fuel, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are also reimbursable, if they are incurred while conducting City business.

2. Only a Councilmember’s travel for City business outside San Fernando’s local area (defined as fifty (50) miles from City Hall or more) is authorized for reimbursement.

3. A Councilmember may leave from their home for City business. However, the City will not reimburse for mileage that exceeds mileage from City Hall to the destination point.

D. Car Rental. Prior approval is needed for use of a rental vehicle, and it must be justified as an economical business necessity. Councilmembers will be reimbursed for economy, compact, or mid-sized rentals only.

Applicable loss damage waiver insurance is encouraged. Attempts should be made to acquire the lowest rate through competitive shopping and advance reservations. Car rentals may be considered an alternative to airfare or mileage reimbursement where the cost of airfare or mileage equals or exceeds the cost of car rental. Mileage reimbursement will not be paid for rental vehicles; only receipted fuel expenses shall be reimbursed.

June 15, 2026 Special & Regular CC Mtg Page 206 of 576

POLICY/PROCEDURE

COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-002 (06/15/2026) | Page 6 of 9 RES. NO. 8455
EXHIBIT “A”
E. Taxis/Rideshare/Shuttles. When traveling to or from City business, conferences, or a transportation hub, reasonable taxi, rideshare, or shuttle fares may be reimbursed, including a 15% maximum gratuity per fare, when the cost of such fare is equal or less than the cost of car rentals, fuel and parking combined, or when such transportation is necessary for time-efficiency.

F. Parking. Parking fees incurred at either a hotel or at a parking facility are reimbursable. However, unless a Councilmember can demonstrate that no other reasonable alternative exists, valet parking cost will not be reimbursed beyond that incurred for a normal self-parking fee at the location. When airport parking is used for travel exceeding 24 hours, reimbursement will be based on long-term rather than short-term parking rates.

G. Baggage Fees. Standard baggage fees may be reimbursed, with accompanying airline receipts, if flying on an airline that charges for baggage.

H. Internet. Internet usage associated with City-related business will be reimbursed at a not-to-exceed amount of $15 per day, or if more than $15 per day, the standard amount charged per day by the hotel with accompanying receipts. If a portion of the internet service is used for non-city related business, indicate the percentage used for city-related business in the expense report.

I. Other. Councilmembers may, if they choose, use personal funds to pay for expenses that exceed reimbursable rates.

SECTION VII. LODGING
A. Lodging expenses will be reimbursed only at the single occupancy rate for rooms.

B. Reasonably Required Lodging. Lodging expenses will be reimbursed when travelling on official City business, in the City Manager’s judgment, reasonably requires an overnight stay. Travel is deemed to reasonably require an overnight stay if it is more than fifty (50) miles from City Hall. Travel outside of the City that is less than fifty (50) miles from City Hall is deemed to reasonably require an overnight stay only if the Councilmember is on a committee or has other event responsibilities related to planning, facilitating, or organizing the event other than basic attendance that requires extended time at the event.

C. Conferences/Meetings. If lodging is associated with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking. Advance reservations are encouraged to obtain the best rate available; however, if the conference designated lodging location is unavailable, the most economical alternative should be used.

D. Other Lodging. Councilmembersmust request government rates, when available. Lodging rates that are equal to or less than government rates are presumed to be reasonable and hence reimbursable for purposes of this policy. If government rates are not available at a given time or in a given area, lodging rates that do not exceed the U.S. General Services Administration (WWW.GSA.GOV) rates for a given area are presumed reasonable and hence reimbursable. If government rates are not available at a given time or in a given area, lodging rates that are above the U.S. General Services Administration (WWW.GSA.GOV) rates must be approved in advance by the City Manager to be reimbursable.

June 15, 2026 Special & Regular CC Mtg Page 207 of 576

POLICY/PROCEDURE

A. For any overnight trip, a Councilmember will receive a per diem that is based on the limit for the City or County to which they are traveling as established by the U.S. General Services Administration (WWW.GSA.GOV). Examples of per diem rates and reimbursable meals and incidental expenses, inclusive of tax and tip, are set forth in Exhibit “2” to this Policy, which reflect the U.S. General Services Administration (WWW.GSA.GOV) rates as same may be adjusted by the U.S. General Services Administration from time to time.

B. Meals authorized by this policy consumed by a Councilmember not associated with an overnight trip are reimbursed in amounts established by the U.S. General Services Administration and set forth in Exhibit “2” to this policy.

C. Per Diem rates will be deducted for applicable meals included in conference or seminar registration or program fees.

D. The time calculations for per diem starts when the Councilmember begins travel. The first and last calendar days of travel are eligible for reimbursement at 75% of the per diem rate, and the Councilmember can claim the full per diem amount for each 24-hour period thereafter.

E. Receipts are not required to claim per diem. However, a Travel Expense Report with time, place, and business purpose must be completed upon return.

F. Any reimbursement claim for expenses that exceed the per diem rate are additional income for tax purposes.

G. Gratuities or tips associated with meals at a restaurant or provided by the City should not exceed 15%. Meals are reimbursable for All-Day Training Courses or Educational Seminars to the extent that the meal was for a valid business purpose and included the conduct of City-related business. For example, a lunch during which training participants collaborated on an assigned case study as part of a training session would constitute a reimbursable meal. The meal must be a venue for discussion or other consideration of a business-related topic, and the characterization as such must be documented in order to qualify for reimbursement and avoid triggering taxable income pursuant to the Internal Revenue Code.

H. Meals for Third Parties. As a general rule, public funds may not be expended by Councilmembers to purchase meals for third parties, such as constituents, legislators and private business owners.

SECTION IX. EXPENSE REPORT CONTENT AND SUBMISSION DEADLINE A. All expense reimbursement requests must be submitted on an expense report form provided by the City.

B. Expense reports must document that the expense in question met the requirements of this policy. For example, if a meeting is with a legislator, the Councilmember should explain whose meals were purchased, include name, title and organization, what issues were discussed and how those relate to the City’s adopted legislative positions and priorities.

June 15, 2026 Special & Regular CC Mtg Page 208 of 576

POLICY/PROCEDURE

COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-002 (06/15/2026) | Page 8 of 9 RES. NO. 8455
EXHIBIT “A”
C. Councilmembers must submit their expense reports within thirty (30) calendar days after an expense is incurred, accompanied by receipts documenting each expense. Both an itemized restaurant receipt and credit card authorization receipt (or final receipt if paid with cash) are required for reimbursement for any meals purchased.

D. Inability to provide such documentation in a timely fashion may result in the expense being borne by the Councilmember.

E. All expenses are subject to verification that they comply with this policy.

F. Reimbursement for any expenses associated with mileage, parking, taxis, rideshare, shuttles, or food/beverages must be submitted through the accounts payable process and not through petty cash.

G. If travel plans are cancelled, Councilmembers should make every effort to receive a full refund for all travel expenses and deposits. If a travel voucher is provided in lieu of a refund, it must be used for City-related travel.

H. If the City incurs any non-refundable costs for planned travel and the Councilmember is removed from office prior to the planned travel, that Councilmember must reimburse the City for any non-refundable costs.

SECTION X. REPORTS TO LEGISLATIVE BODY
Whether on the List of Pre-Approved Organizations & Events or approved by the City Council at a scheduled City Council meeting, each Councilmember must briefly report on meetings, seminars, conferences, educational programs, and other authorized activities attended at City expense at the City Council meeting following the activity. If multiple Councilmembers attended, a joint report may be made.

SECTION XI. COMPLIANCE WITH LAWS
Some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the California Public Records Act.

SECTION XII. VIOLATIONS
Use of public resources or falsifying expense reports in violation of this Policy may result in any or all of the following:

A. Loss of reimbursement privileges;
B. A demand for restitution to the City;
C. The City’s reporting the expenses as income to the Councilmember to state and federal tax authorities; D. Civil penalties of up to $1,000 per day and three times the value of the resources used; June 15, 2026 Special & Regular CC Mtg Page 209 of 576

POLICY/PROCEDURE

By order of City Council Motion (Resolution No. 8455), Policy adopted by the City Council on June 15, 2026.

NAME TITLE SIGNATURE

KANIKA KITH CITY MANAGER
June 15, 2026 Special & Regular CC Mtg Page 210 of 576
RES. NO. 8455
EXHIBIT “1” TO EXHIBIT “A”

CITY OF SAN FERNANDO
City Councilmember Expense Reimbursements
List of Pre-Approved Organizations & Events
City Councilmembers may be reimbursed for actual and necessary expenses incurred while engaging in City business activities as defined in the City’s Expense Reimbursement, AB 1234, Policy. The following is the list of pre-approved organizations and events for which the City Councilmembers may receive reimbursement for attending to conduct City business. If a City Councilmember wishes to be reimbursed for attending a qualified event that is not listed below, the City Councilmember must receive approval from the City Council at a scheduled City Council Meeting prior to incurring any cost for the event. All international travel requires prior approval by the City Council on a case-by-case basis even if the organization is included on the preapproved list below.

The following is the List of Pre-Approved Organizations & Events:
• California Contract Cities Association (CCCA) – Annual Municipal Seminar, Fall Conference, Legislative Tour, or Board Meetings.
• Independent Cities Association (ICA) – Summer Seminar, and Winter Seminar. • International Council of Shopping Centers (ICSC) – Annual conference. • League of California Cities (Cal Cities) – Annual Conference, Legislative Action Days, Legislative Tour, Policy Committee Meetings, District Meetings or Board Meetings. New Mayors and Councilmembers Academy. Annual City Leaders Summit. • National Association of Latino Elected & Appointed Officials (NALEO) – Annual Conference.
• National League of Cities (NLC) – Annual Conference, Congressional City Conference and Other Forums or Summits.
• Southern California Association of Governments (SCAG) – Trainings or Conferences. • United States Conference of Mayors – Annual Meeting, Winter Meeting or Regional Meetings.
• Water Education for Latino Leaders (WELL) – Annual Conference.

June 15, 2026 Special & Regular CC Mtg Page 211 of 576
RES. NO. 8455
EXHIBIT “2” TO EXHIBIT “A”
Per Diem and Meal Reimbursement Schedule
Based on U.S. Government Services Administration, As of October, 2025 *Meals and incidental expenses for out-of-town travel, inclusive of tax and tip:

Los Angeles, Orange, Sacramento, San Diego, and Ventura Counties Meals & Incidental Expenses Total: $ 86 Per Day
Breakfast: $ 22 Per Day
Lunch: $ 23 Per Day
Dinner: $ 36 Per Day
Incidental Expenses: $ 5 Per Day
First/Last Calendar Days of Travel: $64.50 Per Day
Washington DC and Santa Barbara Counties
Meals & Incidental Expenses Total: $ 92 Per Day
Breakfast: $ 23 Per Day
Lunch: $ 26 Per Day
Dinner: $ 38 Per Day
Incidental Expenses: $ 5 Per Day
First/Last Calendar Days of Travel: $ 69 Per Day
Incidental expenses are fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.

Meals not associated with out-of-town or overnight travel, inclusive of tax and tip:

Los Angeles County
Breakfast: $ 22
Lunch: $ 23
Dinner: $ 36
Pursuant to United States Government Services Administration (GSA) guidance, the first and last calendar days of travel are eligible for reimbursement at 75% of the per diem rate, and the Public Official can claim the full per diem amount for each 24-hour period thereafter. *Current per diem rates are available at WWW.GSA.GOV.

POLICY/PROCEDURE

SUBJECT ISSUANCE

CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY

ORIGINAL DATE
April 10, 1995

EFFECTIVE
April 10, 1995

CURRENT DATE
June 15, 2026

EFFECTIVE
June 15, 2026
CATEGORY POLICY NO. SUPERSEDES
CITY COUNCIL CC2026-001 April 10, 1995

MANAGEMENT POLICY/PROCEDURES
SECTION I. DECLARATION OF POLICY AND PURPOSE
This Employee and Commissioner Expense Reimbursement Policy (“Policy”) is adopted for the purpose of establishing regulations for reimbursing Employees and Commissioners (as defined below) for various Cityrelated expenses including, without limitation, travel, meals, and mileage. This Expense Reimbursement Policy applies to all reimbursements for authorized expenses associated with city business including, without limitation, travel, meals and mileage.

SECTION II. DEFINITIONS
Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Employee Expense Reimbursement Policy.

A. “Employee” means all City employees and excludes the City Council and members of subordinate Commissions, Boards and Committees appointed by the City Council.

B. “Reimbursement” means all forms of payment for expenses incurred by Employees in the course of their official duties whether paid directly by the City (including, without limitation, with a City-issued credit card) or advanced by Employees with personal funds and later reimbursed from City funds.

SECTION III. CITY BUSINESS – AUTHORIZED ACTIVITIES
Expenses incurred while engaging in the following City business activities are generally authorized expenses if all requirements of this Policy are satisfied:

CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-001 (6/15/2026) | Page 2 of 7 RES. NO. 8455
EXHIBIT “B”
C. Participating in state, national or county/other regional organizations whose activities affect the City’s interests;
D. Attending City-sponsored or City-organized events;
E. Attending meetings with constituents, neighborhood groups, business organizations, and others regarding matters of City business;
F. Appearing as a witness or the City’s designated representative in legal proceedings in which the City is a party; G. Attendance at ceremonial events celebrating or honoring the San Fernando community that are organized or co-sponsored by the City or by public agencies or other organizations that serve or advocate for City residents or businesses or that promote City’s culture, history or celebrated residents and institutions; and A non-exhaustive list of events eligible for reimbursement are set forth in the Approved Events which is attached hereto as Exhibit “1”. Expenditures incurred in connection with activities or events listed above require prior approval by the City Manager. In addition, the following requires City Manager pre-approval: (i) Out-of-state or international travel; and (ii) Expenses foreseeably exceeding $5,000 per trip.

Employees may, if they choose, use personal funds to pay for expenses that exceed reimbursable rates.

SECTION IV. UNAUTHORIZED EXPENSES
The City will not reimburse Employees for expenses incurred outside the scope of their official duties including, but not limited to, the following examples:

A. The personal portion of any trip. For example, if an Employee elects to travel to an event in advance or stay longer on personal business or for personal leisure, the City need only reimburse for roundtrip travel costs and costs incurred during the event’s duration;
B. Political or charitable contributions or events;
C. Expenses for family members (e.g., spouse, partner, children) and/or other travelling companions accompanying an Employee on City-related business;
D. Entertainment expenses, including theater, movies (either in-room or at the theater), sporting events (including gym, massage and/or golf related expenses), or other cultural events; E. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance, fuel, or EV charging;
F. Personal losses incurred while on City business except as provided in the City’s insurance authority’s memorandum of coverage;
G. Expenses for which an Employee receives reimbursement from another agency; H. Alcohol/personal bar expenses;
June 15, 2026 Special & Regular CC Mtg Page 214 of 576
POLICY/PROCEDURE:

CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-001 (6/15/2026) | Page 3 of 7 RES. NO. 8455
EXHIBIT “B”
I. Expenses incurred in violation of federal or state law, or City ordinance or policies.

The City will not reimburse Employees for expenses that exceed budget limits for the category of expense. Any questions regarding the propriety of a particular type of expense should be resolved by the City Manager before the expense is incurred.

SECTION V. TRANSPORTATION
A. Generally. Employees must use the most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements, using a direct and time-efficient route. Government and group rates must be used when available.

B. Airfare. The lowest possible airfare, as reflected by a comparison of airfares offered directly by commercial airlines or fare comparison websites, shall be used when purchasing flights; at times, baggage fees may be used to compare the total cost of the airfare. However, the City will allow for Southwest “anytime” flights when the flight is booked in advance, due to its flexibility for changes and cancelations. No Employee shall be reimbursed for the cost of upgrades to class or seating type for which a fare higher than basic, economy, or coach class is charged. Airfare expenses should be prepaid directly by the City where possible.

C. Automobile.

2. If an Employee receives an Automobile Allowance, only travel for City Business outside San Fernando’s local area (defined as fifty (50 miles from City Hall or more) is authorized for reimbursement.

3. An Employee may leave from their home for City business. However, the City will not reimburse for mileage that exceeds mileage from City Hall to the destination point.

D. Car Rental. Prior approval is needed for use of a rental vehicle, and it must be justified as an economical business necessity. Employee’s will be reimbursed for economy, compact, or mid-sized rentals only.

Applicable loss damage waiver insurance must be procured. Attempts should be made to acquire the lowest rate through competitive shopping and advance reservations. Car rentals may be considered an alternative to airfare or mileage reimbursement where the cost of airfare or mileage equals or exceeds the cost of car rental.

Mileage reimbursement will not be paid for rental vehicles; only receipted fuel expenses shall be reimbursed.

E. Taxis/Rideshare/Shuttles. Reasonable taxis, rideshare, or shuttle fares may be reimbursed, including a 15% maximum gratuity per fare, when the cost of such fare is equal or less than the cost of car rentals, fuel and parking combined, or when such transportation is necessary for time-efficiency.

F. Parking. Parking fees incurred at either a hotel or at a parking facility are reimbursable. However, unless a Employee can demonstrate that no other reasonable alternative exists, valet parking cost will not be June 15, 2026 Special & Regular CC Mtg Page 215 of 576
POLICY/PROCEDURE:

CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-001 (6/15/2026) | Page 4 of 7 RES. NO. 8455
EXHIBIT “B”
reimbursed beyond that incurred for a normal self-parking fee at the location. When airport parking is used for travel exceeding 24 hours, reimbursement will be based on long-term rather than short-term parking rates.

G. Baggage Fees. Standard baggage fees may be reimbursed, with accompanying airline receipts, if flying on an airline that charges for baggage.

I. Other. Employees may, if they choose, use personal funds to pay for expenses that exceed reimbursable rates.

SECTION VI. LODGING
A. Lodging expenses will be reimbursed only at the single occupancy rate for rooms.

B. Reasonably Required Lodging. Lodging expenses will be reimbursed when travelling on official City business, in the City Manager’s judgment, reasonably requires an overnight stay. Travel is deemed to reasonably require an overnight stay if it is more than fifty (50) miles from City Hall. Travel outside of the City that is less than fifty (50) miles from City Hall is deemed to reasonably require an overnight stay only if the Employee is on a committee or has other event responsibilities related to planning, facilitating or organizing the event other than basic attendance that requires extended time at the event.

D. Other Lodging. Employees must request government rates, when available. Lodging rates that are equal to or less than government rates are presumed to be reasonable and hence reimbursable for purposes of this policy. If government rates are not available at a given time or in a given area, lodging rates that do not exceed the U.S. General Services Administration (WWW.GSA.GOV) per diem rates for a given area are presumed reasonable and hence reimbursable. If government rates are not available at a given time or in a given area, lodging rates that are above the U.S. General Services Administration (WWW.GSA.GOV) per diem rates must be approved in advance by the City Manager to be reimbursable.

E. As more specifically provided under this Policy below, Employees are expected to be thrifty and prudent as possible when traveling at City expense. The City has only a limited amount of funds available for travel expenses. To stretch the use of travel funds, Employees should use the most economic means available and refrain from lavish and expensive meals or accommodation.

June 15, 2026 Special & Regular CC Mtg Page 216 of 576
POLICY/PROCEDURE:

CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-001 (6/15/2026) | Page 5 of 7 RES. NO. 8455
EXHIBIT “B”
SECTION VII. MEALS AND INCIDENTAL EXPENSES
A. For any overnight trip, an Employee will receive a per diem that is based on the limit for the City or County to which they are traveling as established by the U.S. General Services Administration (WWW.GSA.GOV).

Examples of per diem rates and reimbursable meals and incidental expenses, inclusive of tax and tip, are set forth in Exhibit “2” to this Policy, which reflect the U.S. General Services Administration (WWW.GSA.GOV) rates as same may be adjusted by the U.S. General Services Administration from time to time.

B. Meals authorized by this policy consumed by an Employee Councilmember not associated with an overnight trip are reimbursed in amounts established by the U.S. General Services Administration and set forth in Exhibit “2” to this policy.

C. Per Diem rates will be deducted for applicable meals included in conference or seminar registration or program fees.

D. The time calculations for per diem starts when the Employee begins travel. The first and last calendar days of travel are eligible for reimbursement at 75% of the per diem rate, and the Employee can claim the full per diem amount for each 24-hour period thereafter.

E. Receipts are not required to claim per diem. However, a Travel Expense Report with time, place, and business purpose must be completed upon return.

F. Any reimbursement claim for expenses that exceed the per diem rate are additional income for tax purposes.

H. Meals for Third Parties. As a general rule, public funds may not be expended by Employees to purchase meals for third parties, such as constituents, legislators and private business owners.

SECTION VIII. EXPENSE REPORT CONTENT AND SUBMISSION DEADLINE A. All expense reimbursement requests must be submitted on an expense report form provided by the City.

B. Expense reports must document that the expense in question met the requirements of this policy. For example, if a meeting is with a legislator, the Employee should explain whose meals were purchased, include name, title and organization, what issues were discussed and how those relate to the City’s adopted legislative positions and priorities.

June 15, 2026 Special & Regular CC Mtg Page 217 of 576
POLICY/PROCEDURE:

CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-001 (6/15/2026) | Page 6 of 7 RES. NO. 8455
EXHIBIT “B”
C. An Employee must submit their expense reports within thirty (30) calendar days after an expense is incurred, accompanied by receipts documenting each expense. Both an itemized restaurant receipt and credit card authorization receipt (or final receipt if paid with cash) are required for reimbursement for any meals purchased.

D. Inability to provide such documentation in a timely fashion may result in the expense being borne by the Employee.

E. All expenses are subject to verification that they comply with this Policy.

F. Reimbursement for any expenses associated with mileage, parking, taxis, rideshare, shuttles, or food/beverages must be submitted through the accounts payable process and not through petty cash.

G. If travel plans are cancelled, an Employee should make every effort to receive a full refund for all travel expenses and deposits. If a travel voucher is provided in lieu of a refund, it must be used for City-related travel.

SECTION IX. MISCELLANEOUS
A. Compliance with Laws. Some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the California Public Records Act.

B. Minimizing Disruption to Operations. The simultaneous absence of both a department head and assistant head shall be minimized and may be a consideration in the City Manager’s decision to deny attendance at an event.

C. Containing Costs. Employees are expected to be as thrifty and prudent as possible when traveling at City expense or otherwise expending such for which they will seek reimbursement from the City. The City has only a limited amount of funds available for travel expenses. To ensure that City employees are able to travel when necessary to accomplish essential City business, travel funds must be expended in the most economical and efficient way possible. Unnecessarily lavish or expensive meals or accommodations are not justified and all persons traveling at City expense should carefully control expenses to minimize the cost to the City.

SECTION X. VIOLATIONS
Use of public resources or falsifying expense reports in violation of this Policy may result in any or all of the following:

A. Loss of reimbursement privileges;
B. A demand for restitution to the City;
C. The City’s reporting the expenses as income to the Employee to state and federal tax authorities; June 15, 2026 Special & Regular CC Mtg Page 218 of 576
POLICY/PROCEDURE:

CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY
City Manager’s Office | 117 Macneil Street | San Fernando, CA 91340 | (818) 898-1202 | Policy # CC2026-001 (6/15/2026) | Page 7 of 7 RES. NO. 8455
EXHIBIT “B”
D. Prosecution for misuse of public resources; and
E. Disciplinary action up to and including termination.

By order of City Council Motion (Resolution No. 8455), Policy adopted by the City Council on June 15, 2026.

NAME TITLE SIGNATURE

KANIKA KITH CITY MANAGER
June 15, 2026 Special & Regular CC Mtg Page 219 of 576
RES. NO. 8455
EXHIBIT “1” TO EXHIBIT “B”

CITY OF SAN FERNANDO
Employee Expense Reimbursements
List of Organizations & Events Eligible for Reimbursement Employees may be reimbursed for expenses incurred while engaging in City business as defined in this Policy. The following is the list of eligible organizations and events for which the Employees may receive reimbursement for attending. Participation is subject to pre-approval by the City Manager, including for those organizations and events not appearing on this list. All international travel requires prior approval of both the City Manager and the City Council on a case-by-case basis even if the organization is included on the list below. All Employee participation in the organization and events, irrespective of whether they appear on the list below, is also subject to the availability of allocated funds, if any.

The following is the List of Eligible Organizations & Events:
• American Planning Association of California (APA) – Annual Conference. • American Water Works Association (AWWA) – Annual Conference and Seminars. • California Association for Property and Evidence (CAPE) – Annual Conference. • California Association of Code Enforcement Officers (CACEO) – Annual Conference and Workshops.
• California Association of Public Information Officers (CAPIO) – Annual Conference and Workshops.
• California Branch of the National Emergency Number Association (CALNENA) – Annual Conference.
• California Building Official – Workshops and Seminars. • California Contract Cities Association – Annual Municipal Seminar, Fall Conference, Legislative Tour, or Board Meetings.
• California Corrections Association – Keys to Inmate Management Annual Conference. • California Executive Assistant Conference – Annual Conference and Meetings. • California Gang Investigators Association (CGIA) – Annual Conference and Workshops. • California Joint Powers Insurance Authority (JPIA) – Educational Forums, Trainings, and Meetings.
• California Law Enforcement Association Records Supervisors (CLEARS) – Annual Conference.
• California Law Enforcement Telecommunications System (CLETS) Users Group (CCUG) – Training and Technology Seminar.
• California Municipal Clerks Association (CMCA) – Annual Conference and Workshops. • California Narcotic Officers’ Association (CNOA) – Annual Conference and Workshops. • California Parks and Recreation Society (CPRS) – Annual Conference and Seminars. • California Police Chiefs (CalChiefs) – Annual Conference and Meetings. • California Preservation Foundation – Workshops and Seminars.

June 15, 2026 Special & Regular CC Mtg Page 220 of 576
RES. NO. 8455
EXHIBIT “1” TO EXHIBIT “B”
• California Society of Municipal Finance Officers (CSMFO) – Annual Conference. • Government Social Media Organization (GSMO) – Annual Conference and Workshops. • Housing Rights Center (HRC) – Housing Rights Summit.
• Independent Cities Association – Winter Seminar and Summer Seminar. • International City/County Management Association (ICMA) – Annual Conference and Workshops.
• International Council of Shopping Centers (ISCS) – Annual Conference. • International Institute of Municipal Clerks (IIMC) – Master Municipal Clerks (MMC) Annual Conference and Seminars.
• International Latino Gang Investigators Association (ILGIA) – Annual Conference and Workshops.
• League of California Cities (Cal Cities) – Annual Conference, Legislative Action Days, Legislative Tour, Policy Committee Meetings, District Meetings or Board Meetings, educational conference for various Leage of California Cities Departments. • Los Angeles County Police Chief’s Association (LACPCA) – Annual Conference and Meetings.
• Maintenance Superintendents Association – Workshops and Seminars. • Municipal Information Systems Association of California (MISAC) – Annual Conference. • Municipal Management Association of Southern California (MMASC) – Annual Conference, Seminars, and Meetings.
• National Alliance to End Homelessness – Workshops and Seminars. • National Recreation and Parks Association (NRPA) – Annual Conference and Workshops. • Public Sector Human Resources Association (PSHRA) – Annual Conference and Workshops.
• Public Works Institute – Workshops and Seminars.
• San Gabriel Valley City Manager’s Association (SGVCMA) – Seminars and Meetings. • Southern California Association of Governments – Trainings or Conferences. • Southern California Municipal Athletic Federation (SCMAF) – Annual Conference and Workshops.
• UCLA Extension - Land Use Law and Planning Training.
• Urban Land Institute (ULI) – Homelessness Summit, Annual Conference and Workshops.

June 15, 2026 Special & Regular CC Mtg Page 221 of 576
RES. NO. 8455
EXHIBIT “2” TO EXHIBIT “B”
Per Diem and Meal Reimbursement Schedule
Based on U.S. Government Services Administration, As of October, 2025 *Meals and incidental expenses for out-of-town travel, inclusive of tax and tip:

Los Angeles, Orange, Sacramento, San Diego, and Ventura Counties Meals & Incidental Expenses Total: $ 86 Per Day
Breakfast: $ 22 Per Day
Lunch: $ 23 Per Day
Dinner: $ 36 Per Day
Incidental Expenses: $ 5 Per Day
First/Las Calendar Days of Travel: $64.50 Per Day
Washington DC and Santa Barbara Counties
Meals & Incidental Expenses Total: $ 92 Per Day
Breakfast: $ 23 Per Day
Lunch: $ 26 Per Day
Dinner: $ 38 Per Day
Incidental Expenses: $ 5 Per Day
First/Last Calendar Days of Travel: $ 69 Per Day
Incidental expenses are fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.

Meals not associated with out-of-town or overnight travel, inclusive of tax and tip:

Los Angeles
Breakfast: $ 22
Lunch: $ 23
Dinner: $ 36
Pursuant to GSA guidance, the first and last calendar days of travel are eligible for reimbursement at 75% of the per diem rate, and the Public Official can claim the full per diem amount for each 24-hour period thereafter.
*Current per diem rates are available at WWW.GSA.GOV.

June 15, 2026 Special & Regular CC Mtg Page 222 of 576
ATTACHMENT “B”

PROPOSED UPDATES TO COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY ADDED
• Declaration of Policy and Procedure: Purpose of establishing regulations for reimbursing Councilmembers for City-related expenses and travel.
• Removed Commissioners from Councilmember policy.
• Definitions: Actual and necessary, not mere convenience. • City Business – Authorized Activities: Specific authorized activities, including list of PreApproved Organizations and Events. Includes directive regarding international travel. • Unauthorized activities: Personal expenses, political or charitable contributions or events, expenses for family members, entertainment expenses, if reimbursement is received from another agency, alcohol/personal bar expenses, restaurant meals exclusively among Councilmembers and/or employees, gala events not organized/cosponsored/operates within/or serves/advocates for City. If in violation of federal/state law or City ordinance/policy. No reimbursement if expenses exceed budget limits.

Questions should be resolved by City Council before expense is incurred. • Travel Allocation: Unused travel funds will be credited back to General Fund.

Councilmembers donating travel funds to Commissioners and other Councilmembers.

New Councilmembers sworn-in mid-year will receive prorated travel funds.

Councilmembers directed to attend specific meetings/event will not be credited against the individual Councilmember’s travel allocation. Direction must take place at a regular meeting and specify where costs will be charged.
• Transportation: Must use most economical mode of transportation. o Airfare. Southwest “anytime” flights may be used due to flexibility for changes and cancellations. Upgrades to class or seating type not allowed if higher cost. o Automobile. Outside of local travel (defined as 50(5) miles from City Hall or more) is authorized for reimbursement.
o Car Rental. Prior approval needed and must be justified as necessity. Economy, compact, mid-sized only.
o Taxis/Rideshare/Shuttles. May be reimbursed when traveling to/from City business/conference/transportation hub, including 15% maximum gratuity, when necessary for time-efficiency.
o Parking. Valet parking not reimbursable unless no other reasonable alternative exists. Long-term parking should be used at airports.
o Baggage Fees. Allowed if airline charges for baggage. o Internet. Allows $15 per day for city-related business. • Lodging: Single occupancy rate only.

June 15, 2026 Special & Regular CC Mtg Page 223 of 576
ATTACHMENT “B”
o Reasonably Required Lodging. If more than fifty (50) miles from City Hall. Less than fifty (50) miles from City Hall if the Councilmember is on a committee or has other event responsibilities related to planning, facilitating, or organizing the event other than basic attendance.
o Conferences/Meetings. Must not exceed conference group rate. Advance reservations encouraged.
o Other Lodging. Must request government rates, when available. Rates should not exceed U.S. General Services Administration rates for a given area; if rates exceed, must be approved in advance.
• Meals and Incidental Expenses: Per Diem base on the City or County to which they are traveling established by the U.S. General Services Administration. Per Diem rates deducted for meals included in conference/seminar registration. Meals for Third Parties.

Public funds may not be expended by Councilmembers for constituents, legislators, and private business owners.
• Expense Report Content and Submission Deadline: Expense reports and receipts must be submitted within 30 days and on forms provided by the City. All expenses subject to verification that they comply with policy. Must be processed through the accounts payable process and not through petty cash. If cancelled, Councilmembers should make every effort to receive a full refund. If travel voucher is provided in lieu of refund, must be used for City-related travel. If Councilmember is removed from office prior to planned travel, Councilmember must reimburse City for any non-refundable costs. • Reports to Legislative Body: Councilmember must briefly report on activities at the Council meeting following said activity.
• Compliance with Laws: may be subject to reporting under Political Reform Act or other laws. Subject to public records disclosure.
• Violations: Falsifying expense reports may result in loss of privileges, restitution, reporting expenses as income to state/federal tax authority, civil penalties, or prosecuting for misuse of public resources.

June 15, 2026 Special & Regular CC Mtg Page 224 of 576
ATTACHMENT “C”

PROPOSED UPDATES TO CITY EMPLOYEE EXPENSE REIMBURSEMENT POLICY ADDED
• Declaration of Policy and Purpose: purpose of establishing regulations for reimbursing employees for City-related expenses and travel.
• Definitions – “Employees” include members appointed by Councilmembers to Commissions, Boards and Committees.
• City Business – Authorized Activities: Specific authorized activities, including list of PreApproved Organizations and Events • Unauthorized Expenses: Personal expenses, political or charitable contributions or events, expenses for family members, entertainment expenses, non-mileage automobile expenses, if reimbursement is received from another agency, alcohol/personal bar expenses, If in violation of federal/state law or City ordinance/policy. No reimbursement if expenses exceed budget limits. Questions should be resolved by City Manager before expense is incurred.
• Transportation: Must use most economical mode of transportation. o Airfare. Southwest “anytime” flights may be used due to flexibility for changes and cancellations. Upgrades to class or seating type not allowed if higher cost. o Automobile. If employee received an Automobile Allowance, outside of local travel (defined as 50 miles from City Hall or more) is authorized for reimbursement. o Car Rental. Prior approval needed and must be justified as necessity. Economy, compact, mid-sized only.
o Taxis/Rideshare/Shuttles. May be reimbursed when traveling to/from City business/conference/transportation hub, including 15% maximum gratuity, when necessary for time-efficiency.
o Parking. Valet parking not reimbursable unless no other reasonable alternative exists. Long-term parking should be used at airports.
o Baggage Fees. Allowed if airline charges for baggage. o Internet. Allows $15 per day for city-related business. • Lodging: Single occupancy rate only.
o Reasonably Required Lodging. If more than fifty (50) miles from City Hall. Less than fifty (50) miles from City Hall if the Employee is on a committee or has other event responsibilities related to planning, facilitating, or organizing the event other than basic attendance.
o Conferences/Meetings. Must not exceed conference group rate. Advance reservations encouraged.

June 15, 2026 Special & Regular CC Mtg Page 225 of 576
ATTACHMENT “C”
o Other Lodging. Must request government rates, when available. Rates should not exceed U.S. General Services Administration rates for a given area; if rates exceed, must be approved in advance.
• Meals and Incidental Expenses: Per Diem base on the City or County to which they are traveling established by the U.S. General Services Administration. Per Diem rates deducted for meals included in conference/seminar registration. Meals for Third Parties.

Public funds may not be expended by Employees for constituents, legislators, and private business owners.
• Expense Report Content and Submission Deadline: Expense reports and receipts must be submitted within 30 days and on forms provided by the City. All expenses subject to verification that they comply with policy. Must be processed through the accounts payable process and not through petty cash. If cancelled, Employees should make every effort to receive a full refund. If travel voucher is provided in lieu of refund, must be used for City-related travel.
• Miscellaneous:
o Compliance with Laws: may be subject to reporting under Political Reform Act or other laws. Subject to public records disclosure.
o Minimizing Disruption to Operations: Simultaneous absence of Department head and Assistant Head should be avoided, if not, may be denied. o Containing Costs. With limited travel funds, employees are expected to be as thrifty and prudent as possible.
o Violations: Falsifying expense reports may result in loss of privileges, restitution, reporting expenses as income to state/federal tax authority, civil penalties, or prosecuting for misuse of public resources, disciplinary action up to and including termination.

June 15, 2026 Special & Regular CC Mtg Page 226 of 576
-

CITY OF SAN FERNANDO POLICY /PROCEDURE

NUMBER SUBJECT

ORIGINAL ISSUE EFFECTIVE
Travel Policy for City Councilmembers,
Elected Officials and Commissioners
August 15 , 1993

CURRENT ISSUE EFFECTIVE CATEGORY
April 15, 1996 April 15, 1996 COUNCIL POLICY
SUPERSEDES April 10, 1995
I.

II.

PURPOSE AND SCOPE
To establish a policy to be followed by City Councilmembers, other elected officials, and commissioners when traveling on City business, to attend conferences, seminars, training sessions, or local events.

Occasionally, it is necessary for City Councilmembers, Elected Officials, and Commissioners to attend meetings and to travel outside the City to conduct City busine~s, attend conferences and seminars. Various modes of transportation are available and other costs vary considerably.

GENERAL
Definitions
Local Travel shall be defined as travel within the 50-mile radius from San Fernando to conduct City business, attend meetings, conferences, seminars or training sessions that are primarily for the education or professional enrichment of the participant. Local events such as dinners and meetings where the Councilmember, Elected Official or Commissioner would be in attendance based on their role as a City official would be permissible.

Out of Town Travel shall be defined as travel outside the limits of Local Travel to conduct City business, attend meetings, conferences, seminars or training sessions that are primarily for the education or professional enrichment of the participant.

Councilmember Travel Allocation - Each Councilmember will be allocated a travel budget annually and any unused portion will be rolled over to the Councilmember' s following fiscal year's budget. In addition, any Councilmember can allocate funds for the use by any of his/her commissioners for legitimate City business travel.

In the event there is a change in the office, the unused portion of the former Councilmember' s travel budget will be dissolved. The new Council member will be allocated a prorated share based on the number of months before the next budget adoption.

June 15, 2026 Special & Regular CC Mtg
ATTACHMENT "D"

Page 227 of 576 ends

I
\
-
Ill.

1. 2.

3. 4.

5. Travel Policy
City Councilmembers, Elected Officials
and Commissioners

Page 2 ends

POLICY
Requests for travel shall in all cases be limited to City business, conferences, seminars, training sessions, meetings, or local events from which the City will derive a benefit through the attendance of a representative.

If the Council directs individual Councilmembers to attend a meeting or event on official business, the travel costs will not be credited against the individual Councilmember's travel.

Council direction will take place at a Council meeting, along with delineation of where the costs will be charged.

For first time Councilmembers, attendance at the League of California Cities New Mayors and Councilmembers Institute and the Redevelopment Seminar for the year they are elected, shall be provided by the City without charging their travel allocation.

Except for elected officials, attendance at conferences should be limited. Any number of elected officials may attend conferences provided that funds for such purposes are provided in the annual budget.

Each traveler is expected to be as thrifty and prudent as possible when traveling at City expense. The City has only a limited amount of funds available for travel expenses. To ensure that City travelers are able to travel when necessary to accomplish essential City business, travel funds must be expended in the most economical and efficient way possible.

Unnecessarily lavish or expensive meals or accommodations are not justified and all persons traveling at City expense should carefully control expenses to minimize the cost to the City.

Transportation
Use of air, train, private car, or bus shall be selected on the basis of least total cost to the City after all expense items are tabulated, including travel time salary costs. t.fO.S
When the use of private automobiles to points within a 50-mile radius of the City is approved (see attached map), reimbursement shall be at the rate of,36"'cents per mile. Other travel ~ within the local meeting area, but outside the 50-mile radius, will be reimbursed at~cents~ • per mile for all City authorized travel. The reimbursement for use of private automobile to points normally designated for air travel, including those individuals with auto or expense allowances, shall not exceed the cost of the price of round trip coach or equivalent class airfare.

Authorized travel time shall be based on that required by the most appropriate mode of public transportation.

While traveling, the use of rental vehicles is discouraged. Courtesy shuttle service, buses, taxis or limousine service should be utilized between airports and meeting locations. Rental yehicles should only. be permitted when othe~ transportationj! unavailable, or rental vehicle 1s the most economical mode of transportation. IS
June 15, 2026 Special & Regular CC Mtg Page 228 of 576
Travel Policy
City Councilmembers, Elected Officials
and Commissioners

Page 3 ends

Lodging
Lodging shall be at the most economical rate available for good quality lodging. Lavish or oversized accommodations are not justified. Lodging expenses for spouses are not reimbursable, and any additional expenses must be paid by the City officer or employee.

Advance payment for lodging will be accomplished with the completion of the below mentioned Travel Authorization.

Meals and Incidental Expenses
Travelers will be entitled to $35 per day to cover meals and incidental expenses without receipts (the City will not pay for alcoholic beverages). However, if receipts for reasonable expenses prove to be more, then the full amount will be reimbursed.

Forms
Local Travel shall be reported on an Employee Expense Reimbursement form. The form is also used for incidental expenses such as miscellaneous items exceeding the petty cash limit of $25, authorized lunches, parking fees, etc.

Out of Town Travel will be accounted for using a Travel Authorization form. Councilmembers should request a form to process for advances, room and travel reservations, and to be used to account for travel expenses. Upon returning from the authorized travel, the traveler will complete the reverse side of the goldenrod form to account for travel expenses.

June 15, 2026 Special & Regular CC Mtg Page 229 of 576
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June 15, 2026 Special & Regular CC Mtg Page 230 of 576
Attachment 2a

TRAVEL AUTHORIZATION FORM
PURPOSE:

To receive authorization for travel prior to a trip and reconciliation of travel expenses after return from the trip.

AUTHORIZATION PROCESS:

Prior to travel, the employee shall complete (via the department secretary if necessary) the Travel Authorization Form:
1) Complete heading and justification.
2) If the Airfare is being obtained from a travel agent, enter the name under Vendor Payments, Ck for Payment Method, and the amount of the airfare. 3) If the Registration is being paid by the City, enter the name and amount under Vendor Payments and attach the registration form to the Travel Authorization. 4) If the traveler wishes the City to make advance payment for the Lodging, enter the hotel name and amount for all nights stays under Vendor Payments and attach the hotel form to the Travel Authorization.
5) For any airfare, registration or lodging that the traveler wishes to pay and get a cash advance for, enter the value under Cash Advance - Itemization and not under Vendor Payments.
6) Meals - If not taking a per diem advance, enter the estimated value of the meals for the travel.
7) Mileage - Enter the estimated number of miles times .30¢ per mile. 8) Per Diem at $35 Per Day - If this line item is filled in, do not make an entry under Meals. Multiply the number of FULL days of authorized travel times $35. 9) Mileage In-Lieu of Airfare - If the traveler is driving their personal vehicle in lieu of flying, they are entitled to mileage at .30¢ per mile. Reimbursement is for actual miles driven (not to exceed the price of the round trip coach, or equivalent class, airfare). 10) Add the Cash Advances and Vendor Payments placing the totals in the appropriate subtotal boxes and carry them to the Payment Summary. Compute Total Cost. 11) Enter Travel Itinerary and sign the form.

June 15, 2026 Special & Regular CC Mtg Page 231 of 576
Attachment 2b
CITY OF SAN FERNANDO • TRAVEL AUTHORIZATION
~------E-M_"_L_o_v_E_E_N_A_M_l _____ ...,.1-. _____ o,_c_"_"'_R_T_M_E_N_T _____ .,.. ______ '"_o_s_,T_1o_N _____ .,.l AUTHORIZATION NO Noor DAYS I LC':;.,.Tl()N ACCOUNT NO AMOUNT I
PURPOS~/JUSTIF ICATION
CASH ADVANCE • ITEMIZATION VENDOR PAYMENTS
Air Fare

DESCRIPTION VENDOR PAYMENT AMOUNT METHOD
Air Fare
Registration Registration
Lodging Lodging
Meals
Mileage
Per Diem @ $ __ Per Day
Mileage In-Lieu of Air Fare

SUBTOTAL

PAYMENT SUMMARY

TOTAL CASH ADVANCE

SUBTOTAL TOTAL VENDOR PAYMENTS

TOTAL COST
IT~NERARY

DATE DEPARTURE ARRIVAL MILEAGE

EMPLOYEE DATE DEPARTMENT HEAD DATE

CITY ADMINISTRATOR DATE RECEIVED BY DATE
DATE NT ACCT.# AMOUNT DESCRIPTION
DISTRIBUTION: WHITE • Finenoe CANARY • Support Record PINIC • EmployN GOLDENROD • Department June 15, 2026 Special & Regular CC Mtg Page 232 of 576
Attachment 3a

TRAVEL AUTHORIZATION FORM -

RECONCILIATION OF ITEMIZED TRAVEL EXPENSES TO CASH ADVANCE RETURN RECONCILIATION:
1) Complete reverse side of goldenrod copy of the Travel Authorization. 2) If itemized expenses are less than the total amount advanced, return the Amount Due the City to the City Treasurer for redeposit to the department's charge travel account. 3) If itemized expenses are more than the total amount advanced, the City will issue a check for the difference when the Reconciliation is completed. 4) Sign the Reconciliation and forward to the Department Head and the Director of Finance.

June 15, 2026 Special & Regular CC Mtg Page 233 of 576
... Attachment 3b
CITY Of IAN FERNANDO • IIECONCILIATION Of ITEMIZED TRAVEL EXPENSES TO CAIH ADVANCE EXPENSE DETAIL- Supporting Documentation Must be Provided for All bpen ... Llated Except Per Diem DATE:

AIR FARE

REGISTRATION

LODGING

BREAKFAST
LUNCH
DINNER

RENTAL CAR

PER DIEM

ILEAGE DETAIL - PERSONAL VEHICLE
DATE BTAl'ITING

MILEAGE
ENDING

MILEAGE
TOTAL

PER TRIP DEPARTURE / DESTINATION
----· $, ___ _ Per Mile• . . . . . . . . . .

I hereby certify that the amounts listed above were
incumtd in conformance with the approved travel
arthoriution and that no pert daimed for Nimbursement is of a personal na11.1re:

City Adminlatrator approval la required If Itemized expenw

TRAVEL EXPENSE SUMMARY

ITEMIZED TRAVEL EXPENSES

AMOUNT ADV ANCEO
□ AMOUNT DUE EMPLOYEE
□ AMOUNT DUE CITY
TOTAL
I i::rrv ADMINISTMTOR o•n I
acceed daily per diem amounts: • ___________________ ,.. ____ __,_ June 15, 2026 Special & Regular CC Mtg Page 234 of 576

CITY OF SAN FERNANDO POLICY /PROCEDURE

MJMBER SUBJECT

ORIGINAL ISSIE
August 15, 1983
EFFECTIVE Travel Policy

CURRENTISSIE
April 10, 1995

EFFECTIVE
April 10, 1995

CATEGORY
Management Policy/Procedures
SUPERSEDES August 15, 1983
•
I.

II.

Ill.

PURPOSE AND SCOPE
To establish City Policy to be followed by all City employees when traveling on City business, to attend conferences, seminars, or training sessions.

DEFINITIONS
Local Travel shall be defined as travel within the 50 mile radius from San Fernando to conduct City business, attend meetings, conferences, seminars or training sessions that are primarily for the education or professional enrichment of the participant.

GENERAL POLICY
It is the policy of the City to reimburse employee expenses directly related to travel on approved City business. Expenses will be paid, subject to all conditions contained in this policy when:
o Specific approval has been granted by the appropriate authority. o Adequate funds have been budgeted in the proper accounts. o Receipts are provided when applicable.

IV. POLICY
0 Requests for travel shall in all cases be limited to City business, conferences, seminars, training sessions, and meetings from which the City will derive a benefit through the attendance of a representative .

Mere membership in an organization is not of itself a justification for travel authorization.

ATTACHMENT "E" June 15, 2026 Special & Regular CC Mtg Page 235 of 576 A.
o The City Administrator may authorize the attendance of additional employees if deemed appropriate and travel funds are available. o The simultaneous absence of both the department head and assistant department head shall be minimized.
o Each traveler is expected to be as thrifty and prudent as possible when travelling at City expense. The City has only a limited amount of funds available for travel expenses. To ensure that City employees are able to travel when necessary to accomplish essential City business, travel funds must be expended in the most economical and efficient way possible.

Unnecessarily lavish or expensive meals or accommodations are not justified and all persons traveling at City expense should carefully control expenses to minimize the cost to the City.
o Employees should make every attempt to have necessary paperwork processed in a timely manner to avoid increased registration fee, etc. due to late submittal.
o Travel reimbursement to the City shall be returned to the Department's travel account number.

Transportation
Use of air, train, city car, private car, or bus shall be selected on the basis of least total cost to the City after all expense items are tabulated, including travel time salary costs.

Adequate automobile insurance, pursuant to the City's Policy on Use of Private Vehicles, is provided by the employee.

When the use of private automobiles to points within 50 miles of the City limits~ approved (see attached map), reimbursement shall be at the rate of .)5¢ per mile. Those individuals with an auto or expense allowance may only charge mileage for travel outside the 50 mile radius. The reimbursement for use of private automobile to points normally designated for air travel including those individuals with auto or expense allowances, shall not exceed the cost of the price of round trip coach or equivalent class air fare. The amount for mileage will be paid for miles driven, or in an amount of the individual coach air fare - whichever is less.

Authorized travel time shall be based on that required by the most appropriate mode of public transportation. Should an employee desire travel time in excess of the above, such time shall be considered and accounted for as vacation leave, management leave or leave without pay.

D.
permitted when other transportation is unavailable, or rental vehicle is the most economical mode of transportation.

Lodging
Lodging shall only be provided for travel out of the Local Travel area unless lodging would result in less cost to the City. City paid lodging shall be for single occupancy. If an employee desires double occupancy, due to a spouse in attendance, the employee shall then be responsible for the difference between single and double occupancy room rates. Lodging shall be at the most economical rate available for good quality lodging.

Lavish or oversized accommodations are not justified. Any additional expenses for spouses must be paid by the employee. Advance payment for lodging will be accomplished with the completion of the below mentioned Travel Authorization.

The City may provide for lodging for an out of town conference that commences before 10:00 a.m. the following day, but only with Department Head approval.

Meals and Incidental Expenses
Forms
Every employee authorized to travel will be entitled to $35 per day to cover meals and incidental expenses without receipts. (The City will not pay for alcoholic beverages.) Per diem will be reduced to $20 per day if the seminar/ conference is for a partial day of four hours or less. Per diem will also be reduced if meals are furnished as part of the registration. For example, a breakfast that is provided would reduce per diem by $10, lunch $10, and dinner $15. If all three meals are provided in the registration fee, the employee would not receive $35 per day per diem, but should submit all incidental expense receipts after the trip for reimbursement. This ensures minimizing the costs to the City.

For one day sessions, where overnight lodging is not involved, expenses should be itemized and per diem not claimed. Itemized expenses require receipts whenever possible and should generally not exceed per diem amounts.

Local Travel shall be reported on an Employee Expense Reimbursement form. The form is also used for incidental expenses such as miscellaneous items exceeding the petty cash limit of $25, authorized lunches, parking fees, etc.

Out of Town Travel will be accounted for by using a Travel Authorization form. Employees will submit this form to the Director of Finance well in advance of the scheduled travel to receive approval of the travel.

June 15, 2026 Special & Regular CC Mtg Page 237 of 576
Emergency or unbudgeted travel for employees must be approved by the City Administrator. Upon returning from the authorized travel, the traveler will complete the reverse side of the goldenrod form to account for travel expenses.

V. EXCEPTIONS
Questions of interpretation or exceptions to this Policy must be clarified and/or approved by the City Administrator.

VI. AUTHORITY
By direction of the City Administrator.

Attachments: 1) Map (Showing 50 mile radius)
2) Travel Authorization form
3) Travel Authorization form -
Reconciliation of Itemized Travel Expenses to Cash Advance June 15, 2026 Special & Regular CC Mtg Page 238 of 576
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June 15, 2026 Special & Regular CC Mtg Page 239 of 576
Attachment 2a

TRAVEL AUTHORIZATION FORM
PURPOSE:

To receive authorization for travel prior to a trip and reconciliation of travel expenses after return from the trip.

AUTHORIZATION PROCESS:

Prior to travel, an employee shall complete the Travel Authorization Form and submit it to the Director of Finance:
1) Complete heading and justification.
2) If the Airfare is being obtained from a travel agent, enter the name under Vendor Payments, Ck for Payment Method, and the amount of the air fare. 3) If the Registration is being paid by the City enter the name and amount under Vendor Payments and attach the registration form to the Travel Authorization. 4) If the traveler wishes the City to make advance payment for the Lodging, enter the hotel name and amount for all nights stays under Vendor Payments and attach the hotel form to the Travel Authorization.
5) For any airfare, registration or lodging that the traveler wishes to pay and get a cash advance for, enter the value under Cash Advance - Itemization and not under Vendor Payments.
6) Meals - If not taking a per diem advance, enter the estimated value of the meals for the travel.
7) Mileage - Enter the estimated number of miles times .25¢ per mile. 8) Per Diem at $35 Per Day - If this line item is filled in, do not make an entry under Meals. Multiply the number of FULL days of authorized travel times $35 (see policy - C. Meals and Incidental Expenses).
9) Mileage In-Lieu of Air Fare - If the traveler is driving their personal vehicle in lieu of flying, they are entitled to mileage at .25¢ per mile. Reimbursement is for actual miles driven (not to exceed the price of the round trip coach, or equivalent class, air fare).
10) Add the Cash Advances and Vendor Payments placing the totals in the appropriate subtotal boxes and carry them to the Payment Summary. Compute Total Cost.
1 1) Enter Travel Itinerary and sign the form.

June 15, 2026 Special & Regular CC Mtg Page 240 of 576
Attachment 2b
CITY OF SAN FERNANDO • TRAVEL AUTHORIZATION
I EMPLOYEE NAM!: DEPARTMENT
_____ .._____
POSITION l
AUTHORIZATION NO NO OF DAYS LC'::M>TIC\N ACCOUNT NO AMOUNT

PURPOSE/JUSTIFICATION
CASH ADVANCE • ITEMIZATION VENDOR PAYMENTS
Air Fare

DESCRIPTION VENDOR PAYMENT AMOUNT METHOD
Air Fare
Registration Registration
Lodging Lodging
Meals
Mileage
Per Diem @ $ __ Per Day
ileage In-Lieu of Air Fare

SUBTOTAL

PAYMENT SUMMARY

TOTAL CASH ADVANCE

SUBTOTAL TOTAL VENDOR PAYMENTS

TOTAL COST
IT~NERARY

DATE DEPARTURE ARRIVAL MILEAGE

EMPLOYEE DATE DEPARTMENT HEAD DATE

CITY ADMINISTRATOR DATE RECEIVED BY DATE
-.D VENDOR INVOICE ACCT.# AMOUNT DESCRIPTION # DATE NO. AMOUNT OISTR I BUTION: WHITE - Finance CANARY • Support Record PINK- EmployH GOLDENROD • Department June 15, 2026 Special & Regular CC Mtg Page 241 of 576
Attachment 3a

TRAVEL AUTHORIZATION FORM -

RECONCILIATION OF ITEMIZED TRAVEL EXPENSES TO CASH ADVANCE RETURN RECONCILIATION:
1 ) Complete reverse side of goldenrod copy of the Travel Authorization. 2) If itemized expenses are less than the total amount advanced, return the Amount Due the City to the City Treasurer for redeposit to the department's charge travel account.
3) If itemized expenses are more than the total amount advanced, the City will issue a check for the difference when the Reconciliation is completed. 4) Sign the Reconciliation and forward to the Department Head and the Director of Finance.

June 15, 2026 Special & Regular CC Mtg Page 242 of 576
-
. Attachment 3b
CITY OF SAN FERNANDO • RECONCILIATION OF ITEMIZED TRAVEL EXPENSES TO CASH ADVANCE EXPENSE DETAIL- SupPorting Documentation Must be Provided for All Expenses listed Except Per Diem • DATE: TOTAL

AIR FARE

REGISTRATION

LODGING

BREAKFAST
LUNCH
DINNER

RENTAL CAR

PER DIEM

EAGE DETAIL - PERSONAL VEHICLE

DATE STARTING ENDING TOTAL DEPARTURE/ DESTINATION MILEAGE MILEAGE PER TRIP -
@ $. Per Mile• . . .. . . .

TRAVEL EXPENSE SUMMARY

ITEMIZED TRAVEL EXPENSES

AMOUNT ADVANCED
I hereby certify that the amounts listed above were 0 AMOUNT DUE EMPLOYEE incurrad in conformance with the approved travel
authorization and that no part claimed for reimburse- □ AMOUNT DUE CITY ment is of a personal nature:
~ EMPLOYEE
I
DATE
I

DEPARTMENT HEAD I DATE I

I CITY ADMINISTRATOR
I
DATE I City Administrator approval is required If Itemized expenses I
exceed daily per diem amounts:

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June 15, 2026 Special & Regular CC Mtg Page 246 of 576

AGENDA REPORT
COMMUNITY DEVELOPMENT DEPARTMENT 117 MACNEIL STREET, CA 91340 (818) 898-1202 WWW.SANFERNANDO.GOV REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Ron Garcia, Director of Community Development
Jose Mendivil, Planning Manager
Date: June 15, 2026
Subject: Consideration to Approve a Second Reading to Adopt an Ordinance Establishing Protocols for Proposed Sale, Leasing, and/or Development of City-Owned Land RECOMMENDATION:

It is recommended that the City Council approve for second reading, in title only, and waive further reading, and adopt Ordinance No. 1743 (Attachment “A”) titled, “An Ordinance of the City Council of the City of San Fernando, California, Establishing Protocols for Proposed Sale, Leasing, and/or Development of City-Owned Land”.

BACKGROUND:

1. On May 4, 2026, the City Council directed staff to present a proposed ordinance establishing protocols for a thorough vetting of any proposed sale, leasing and/or development of City-owned land, designed to ensure that proposed sales and/or development of city-owned lands provide the optimal financial benefit to the City and align with community sensibilities.

2. On June 8, 2026, the City Council received and filed a report on Public-Private Agreements affecting City-owned land (Attachment “B”); adopted a California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) common sense exemptions; and approved the introduction for first reading for Ordinance No. 1743, establishing protocols for proposed sale, leasing, and/or development of City-Owned land. The City Council also directed staff to return at a later date with additional information for Library Plaza at 217 N. Maclay Avenue and Valley Wing Pit at 1245 San Fernando Road.

ANALYSIS:

The sale or lease of surplus City owned property is subject to California Government Code Sections 54220-54234, also known as the Surplus Land Act. The Surplus Land Act (SLA) is a State law that promotes affordable housing by requiring local agencies to first offer surplus property to eligible affordable housing developers, unless the property is exempt from the Act. If the City receives no qualifying offers or cannot reach an agreement with a developer, it may dispose of the property through other means.

June 15, 2026 Special & Regular CC Mtg Page 247 of 576
Consideration to Approve a Second Reading to Adopt an Ordinance Establishing Protocols for Proposed Sale, Leasing, and/or Development of City-Owned Land

Page 2 of 3 ends

The proposed ordinance (Attachment “A”) is compliant with the Surplus Land Act and establishes local procedures for the sale or lease of City-owned property and supplements existing State laws governing surplus public land. Under the ordinance, the City must provide eight (8) weeks of public notice before considering whether a property should be declared surplus. This process concludes with a public hearing at which the City Council determines whether the property should be offered for sale or lease. It also establishes additional local procedures for handling properties that are either exempt from the SLA or have completed the SLA process without a successful sale to an affordable housing developer.

Key points of the proposed ordinance are:
• Updates and reorganizes the Municipal Code provisions governing the disposition of City-owned property.
• Establishes standardized procedures for declaring property surplus and disposing of personal property (e.g., equipment and vehicles), generally through competitive bidding and Council oversight.
• Strengthens compliance with the Surplus Land Act and expands noticing, hearing, and reporting requirements for real property determinations. • Requires competitive processes and fair market value considerations for the sale or lease of City real property, with limited Council-approved exceptions. • Creates structured procedures for leasing City property, including long-term lease requirements and public review provisions.
• Establishes a formal framework for the sale or lease of property for development using a competitive NODO process and development agreements.
• Prohibits conflicts of interest for City officials and defines key terms to ensure consistent implementation.

Once a property has been declared surplus and has either satisfied or been exempted from the SLA requirements, the ordinance generally requires a competitive process to ensure the City receives the greatest financial return or other public benefit. Similar to the surplus declaration process, the City must provide eight (8) weeks of public notice before accepting proposals.

Properties with no specific development objectives would be sold to the highest bidder. For sales or leases where the City seeks a particular development outcome, proposals would be evaluated competitively, and the final award would be considered by the City Council at a public hearing.

On June 8, 2026, the City Council approved the introduction for first reading of Ordinance No. 1743, and directed staff to return with additional information at later date for Library Plaza at 217 N. Maclay Avenue and Valley Wing Pit at 1245 San Fernando Road, including any additional findings.

June 15, 2026 Special & Regular CC Mtg Page 248 of 576
Consideration to Approve a Second Reading to Adopt an Ordinance Establishing Protocols for Proposed Sale, Leasing, and/or Development of City-Owned Land

Page 3 of 3 ends

BUDGET IMPACT:

Costs associated with City Attorney support for the development of the proposed ordinance are billed at an hourly rate through contractual services.

CONCLUSION:

Staff recommends that the City Council approve for second reading, in title only, and waive further reading, and adopt Ordinance No. 1743 titled, “An Ordinance of the City Council of the City of San Fernando, California, Establishing Protocols for Proposed Sale, Leasing, and/or Development of City-Owned Land”.

ATTACHMENTS:

A. Ordinance No. 1743
B. Agenda Report from June 8, 2026 (provided via digital link) June 15, 2026 Special & Regular CC Mtg Page 249 of 576
ATTACHMENT “A”
ORDINANCE NO. 1743

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO, CALIFORNIA, AMENDING AND REORGANIZING DIVISION 7 OF ARTICLE VI (FINANCE) OF CHAPTER 2 (ADMINISTRATION) OF THE SAN FERNANDO

MUNICIPAL CODE ADDING PROCEDURES FOR THE SALE OR LEASING OF

CITY-OWNED REAL PROPERY

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN FERNANDO DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Division 7 (Surplus City-Owned Personal Property) of Article VI (Finance) of Chapter 2 (Administration) of the San Fernando Municipal Code is hereby retitled, amended and reorganized in its entirety to now state the following:

Division 7 Disposition of City-Owned Property.

Subdivision I Surplus City-Owned Personal Property.

Sec. 2-866. Sale authorized.

Any city-owned personal property, including vehicles, which no longer can be used or which is inoperative or which is irreparable or not economically repairable shall be sold by the city administrative officer in the manner set forth in this division.

Sec. 2-867. Exceptions.

This division shall not apply to any items of city-owned personal property used or to be used in trade or exchange for new replacement property of a similar nature pursuant to subdivision II of division 6 of this article.

Sec. 2-868. Council approval for disposal.

Prior to disposing of any salvageable personal property or any non-salvageable personal property that has been assigned an inventory number, the City Manager shall inform the council of the condition of the item proposed for disposition and obtain the determination of the council that such item is obsolete or surplus before proceeding with disposition.

Sec. 2-869. Bids; sales; exchanges.

Under this division, requests for bids shall be issued, and sales shall be made to the highest bidder. However, if the City Manager deems it to be to the best interests of the city, the City Manager shall, subject to council approval for items over $500.00, make such sales by public auction or private sale or exchange.

June 15, 2026 Special & Regular CC Mtg Page 250 of 576
ORD. NO. 1743
2 Sec. 2-870. Cash transactions.

All sales of salvageable city-owned items shall be paid for by cash, certified check or money order payable to the city.

Sec. 2-871. Documents.

The City Manager shall be authorized to sign bills of sale and any other papers or documents evidencing such sales for and on behalf of the city of any such salvageable items.

Sec. 2-872. Disposition of non-salvageable property.

If the City Manager determines that any city-owned personal property items have no salvage value and the non-salvageable personal property was not assigned an inventory number, the City Manager may dispose of them as deemed appropriate.

Subdivision II Surplus City-Owned Real Property
Sec. 2-873. Procedure for Declaring City-Owned Real Property Surplus.

A. Only City-owned real property that has been found and declared to be “surplus land” or “exempt surplus land” within the meaning of Government Code section 54221 may be sold or otherwise conveyed in fee simple by the City to a third-party. On or before December 31st of each year, all departments within the City shall submit to the City Manager a report showing any real property in the possession, custody or control of such department that is no longer used and is otherwise in excess for the needs of the department in compliance with Section 50569 of the Government Code. If the City Manager finds that such real property is not required for any other public use, the City Manager shall so report to the City Council and the City Council may declare it surplus.

The City Council shall be the body authorized to find and declare that City-owned real property is surplus land or exempt surplus and such finding and declaration shall be made by resolution.

B. Prior to making any finding and declaration that City-owned real property is surplus land or exempt surplus, the City Council shall conduct a public hearing that may only be conducted at a regular meeting or adjourned regular meeting of the City Council.

Notice of the date, time and location of the public hearing shall be published in the manner prescribed by Government Code section 6065. At a minimum, such notice shall:
(i) identify the location of the property or properties that are the subject of the public hearing;
(ii) describe its most recent use by the City;
(iii) identify the current zoning for the property; and June 15, 2026 Special & Regular CC Mtg Page 251 of 576
ORD. NO. 1743
3 (iv) the means by which members of the public may participate in the public hearing proceedings, including providing oral comment at the hearing or submitting written comment
Notice of the public hearing shall also be posted at 3 reasonably conspicuous locations on the property or properties that are the subject of the public hearing no less than thirty (30) calendar days prior to the date of the public hearing. At least thirty (30) days prior to the date of the public hearing, the public hearing notice shall also be posted:
(i) on the City’s internet homepage; and
(ii) at San Fernando City Hall at the location(s) where City Council meeting agendas are customarily posted.

C. As part of the public hearing proceedings, the City Manager will provide the City Council with a written report that:
(i) identifies the historical use(s) of the property to the extent such information is reasonable identifiable from a review of City records;
(ii) explains the reason(s) why the subject property/properties is/are no longer needed by the City;
(iii) identifies the authorized uses for the property/properties given applicable zoning and general plan restrictions;
(iv) indicates whether the subject real property qualifies as exempt surplus land and the basis for such determination; and
(v) states whether or not the City has received inquiries about potential purchases or development proposals.

D. If, following the conclusion of the public hearing, the City finds and declares that the subject City-owned real property is surplus land and/or exempt surplus land, the City Council may authorize a public sale of said property and cause to be prepared a written estimate of its fair market value, provided that no sale or other conveyance of fee title of real property (excluding real property found to be exempt surplus land) may be undertaken without first complying with procedures of the Surplus Land Act codified at Government Code section 54220 et seq to the extent it applies to the subject real property.

E. The noticing requirements, hearing proceedings and other procedures called for under this section are in addition to and not in lieu of any noticing requirements or other proceedings required under the Surplus Land Act as precondition to the sale, conveyance or disposal of City-owned surplus land.

F. The procedures of Section 2-874 through 2-876 shall apply if, following the issuance of a notice of availability and compliance all other procedures called for under the Surplus Land Act:

June 15, 2026 Special & Regular CC Mtg Page 252 of 576
ORD. NO. 1743
4 (i) the City does not receive a timely notice of interest for a subject property; or (ii) the City and an entity that submitted a timely notice of interest fail to agree on price and/or terms within the applicable good faith negotiation period set forth under Surplus Land Act or any City Council-approved extended negotiation period memorialized in writing signed by the City and the entity.

The procedures of Section 2-874 shall also apply to City-owned real property found to be exempt surplus land that is not subject to the Surplus Land Act.

Sec. 2-874 Sale of City-Owned Real Property - Generally.

A. Applicability. This section shall apply to all sales of real property by the City, except for the sale of real property for development. The sale of real property for development shall be governed Section 2-876, below.

B. Competitive Process. No City-owned real property shall be sold by the City except after calling for oral or written competitive bids or offers, unless the competitive process has been waived as provided under subsection (C) below. Each solicitation for written competitive bids or offers shall contain the following:

1. The time and place bids or offers are to be received.

2. The minimum acceptable bid or offers on each parcel.

3. A description of each parcel.

4. The amount and type of deposit required of the successful bidder or offeror. Said deposit shall be retained by the City if the successful bidder or offeror fails or refuses to complete the transaction.

5. When the balance of the bid or offer price must be paid.

Oral competitive bids or offers may be received through a public auction process or other competitive process.

Notice of the proposed sale and competitive process shall be published in the manner prescribed by Government Code Section 6065. Notice shall also be posted at 3 reasonably conspicuous locations on the subject property no less than sixty (60) calendar days prior to the deadline for submission of bids/offers. Notice shall also be posted (i) on the City’s internet homepage; and (ii) at San Fernando City Hall at the location(s) where City Council meeting agendas are customarily posted at least sixty (60) calendar days prior to the deadline for submission of bids/offers. Bids or offers shall be received in public at the time and place specified in the notice calling for bids or offers. The sale, if accepted by the City Council, shall be awarded to the highest bidder or offeror meeting the conditions specified in the notice calling for the sale of the property. The City Council shall have the right to accept or reject any and all bids or offers. If the highest bidder or offeror fails or refuses to complete the transaction, the property may subsequently be sold through negotiation to the next highest bidder or offeror willing to meet the same minimum advertised terms and conditions. If no bids or offers are received after advertising the property as required by this section, the real property may subsequently be sold through negotiation, subject to the approval of the City Council.

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5 C. Waiver of Competitive Process. Notwithstanding the above, the requirement to undertake a competitive process and to post notice of the proposed sale shall not apply to any of the following circumstances:

1. The real property is to be sold to another public agency or entity which has the power of eminent domain;

2. The City Council has made a finding and determination that calling for bids or offers on a competitive basis is impractical, unavailing or impossible; or

3. The City Council has made a finding and determination that it is in the best interests of the City to sell the real property by negotiated sale.

D. Sale price. City-owned real property must be sold for a price, payable in cash or other consideration, equal to or exceeding the property's fair market value as determined by an appraisal, unless either (i) the City Council has made a finding and determination that the sale of the property for less than fair market value is in the best interests of the City, or (ii) a state or federal government agency requires the sale of the property for less than fair market value.

E. Restrictions on Officials, officers and employees. Elected and appointed officials, officers or employees of the City may not as principal, agent, attorney or otherwise, be directly or indirectly interested in the sale or conveyance of any City-owned real property.

F. Grant of easements. The City is authorized to grant temporary and permanent easements, including equitable servitudes and right-of-way interests, for access to or use of City real property. This shall include the grant of negative easements such as conservation easements. Any grant of easement must be in exchange for a price, payable in cash or other consideration, equal to or exceeding the fair market value of the easement conveyed as determined by an appraisal, unless (i) the City Council has made a finding and determination that the grant of easement for less than fair market value is in the best interests of the City, or (ii) a state or federal government agency requires the grant of easement for less than fair market value. 2-785 Lease of City-Owned Real Property, Generally
A. Applicability. This section shall apply to all leases of City-owned real property by the City, except for the lease (including ground lease) of real property for development.

The lease of real property for development shall be governed by Section 2-786 below.

B. Procedures.

1. Consistent with Government Code section 37380 as the same may be amended from time to time by the legislature, the City may lease real property owned or held or controlled by it, or any of its departments, for a period not to exceed 99 years.

2. Subsection (B)(1) of this Section notwithstanding, the City may only lease real property owned or held or controlled by it, or any of its departments for a period exceeding 20 years, inclusive of any extension terms, if all of the following conditions are met:

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6 (a) The lease shall be subject to at least triennial review by the City and shall take into consideration the current market conditions. The City Council may, prior to final execution of the lease, establish the lease provisions which will be reviewed at least triennially, and determine when those provisions are to be reviewed.
(b) Any lease in excess of thirty (30) years, inclusive of automatic extension terms or extension terms pursuant to an option to extend, must be approved by an uncodified ordinance adopted by the City Council. The ordinance shall be subject to referendum in the manner prescribed by law for ordinances of cities. (c) Prior to adopting an ordinance authorizing a lease, the governing body shall hold a public hearing. Notice of the time and place of the hearing shall be published pursuant to Government Code Section 6065 and shall be mailed to any person requesting special notice, to any present tenant of the public property, and to all owners of land adjoining the property. The noticing contemplated under this subsection shall be in addition to and not in lieu of any noticing or other proceedings required under the Surplus Land Act. (d) Any lease shall be awarded to the bidder which, in the determination of the City Council, offers the greatest economic return to the city, after competitive bidding conducted in the manner determined by the City Council. Notice inviting bids shall be published pursuant to Government Code Section 6065 in one or more newspapers of general circulation within the city. (e) The provisions of this subdivision are subject to, and not in lieu of, the provisions of the Surplus Land Act. The foregoing notwithstanding, the City shall endeavor to harmonize application of this section with application of the Surplus Land Act. Where the provisions of this section require greater noticing or greater vetting of proposed leasing opportunities, the requirements of this section shall be followed, unless they are expressly preempted by the Surplus Land Act.

C. Rent. Real property must be leased for a rent or fee, payable in cash or other consideration, equal to or exceeding the property's fair market rental value, unless the City Council has made a finding and determination that the lease of the property for less than its fair market rental value is in the best interests of the City. In the case of lessees who provide in-kind services in lieu of cash rent, the value of such in-kind services to the City or the community at large may be considered in making the required Council finding and determination. For purposes of this chapter, in-kind services include benefits or values the provider renders to the City or the community at large as a result of the tenancy in lieu of payment of cash. This may include, but not be limited to, property security and maintenance, social and cultural benefits to the community, or other appropriate services.

D. Restrictions on leases to City officials, officers and employees. Elected and appointed officials, officers or employees of the City may not as principal, agent, attorney or otherwise, be directly or indirectly interested in the lease of any City-owned real property.

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7 2-786 Sale or Lease of City-Owned Real Property for Development A. Intent and application. This section is intended to facilitate the City's sale, lease, or disposition of real property for development to promote the economic development, housing, environmental, and community development goals of the City under the procedures set forth in this subdivision. Any sale, lease, or other disposition of Cityowned real property that conditions the transaction on the development of the property by the purchaser or tenant shall be governed by this section.

B. Process for disposition of property for development.

1. The City shall market the real property by issuing a public and competitive NODO to potential developers and other interested parties. The NODO shall request potential developers and other interested parties to submit written purchase or leasing and development proposals for the property.

2. Notwithstanding the above, the City may elect to waive the competitive NODO process and negotiate a disposition transaction with a selected developer, if the City determines that (i) disposition through a competitive NODO process is impractical, or (ii) disposition through a process other than a competitive NODO process is otherwise in the best interests of the City. The City Council shall make findings in support of any waiver of the NODO process by resolution or ordinance, as appropriate, as a condition to approving any transaction.

3. In evaluating development proposals for real property under this section, the City may consider, without limitation, in addition to price any of the following factors:
(a) The value of the proposed use of the real property to the community and the City as a whole.
(b) The compatibility of the proposed development and use with current zoning and community plans applicable to the real property.
(c) The compatibility of the proposed development and use with the character of the surrounding neighborhood.
(d) The experience, capacity and financial resources of the proposed developer. (e) The quality of project design.
(f) The environmental sustainability of the proposed development. (g) Community and public objectives achieved by the proposed development, such as creating jobs, expanding the tax base, providing other fiscal benefits, providing needed commercial or social services, providing or improving needed infrastructure, increasing, improving or preserving the stock of housing affordable to low and moderate income households, eliminating physical or economic blight, and contributing to the economic vitality of the neighborhood. Other factors, as the City Manager may deem applicable.

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8 4. The City Manager will make a recommendation as to the proposed development and the terms and conditions of one (1) proposed development to the City Council.

The City Council may evaluate the City Manager's recommended development proposal and any other proposals based on the considerations set forth above. Any such approval of a lease or a sale of the property requires City Council approval by resolution or ordinance as applicable.

C. Disposition price.

1. City-owned real property may be disposed of either at its fair market value, fair rental value, or at its fair reuse value, based on the City's assessment of the proposed development and use, prevailing market conditions and development climate at the time of disposition, and other economic and noneconomic factors.

The City shall complete an analysis of the property's fair market value, fair rental value, or fair reuse value, as applicable, in determining an appropriate disposition price.

2. The resolution or ordinance authorizing the disposition of the real property shall include either a finding that the property is being conveyed at its fair market value or fair rental value; or, if the property is being conveyed for less than fair market value or fair rental value, a finding that the property is being conveyed at its fair reuse value with the reasons for the below-market conveyance.

3. The City shall comply with the procedures set forth in California Government Code Sections 52201, et seq., and California Government Code Sections 53083, et seq., to the extent applicable to the disposition of the real property for development.

D. Agreements to Effectuate Intent of Negotiated Development.

1. Any disposition of real property pursuant to this subdivision shall be conditioned on the development and use of the property as negotiated. The City and the purchaser shall enter into a disposition and development agreement, lease disposition or development agreement, or similar agreement governing the transaction. Such agreement shall set forth the terms and conditions of the disposition of the property, the obligations of the purchaser to develop the agreedupon project, and any long-term restrictions on the use of the property. The agreement may contain covenants or conditions running with the land, and may include rights of reverter, repurchase rights, termination rights, or other provisions securing the satisfactory performance of development covenants and other purchaser obligations.

2. The City Council may authorize the City Manager to negotiate and execute agreements and to take whatever other action is necessary with respect to the approved development.

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9 Sec. 2-787 Definitions.

For purposes of this subdivision, the following words and phrases, wherever used in this subdivision, shall be construed as defined in this section unless otherwise required by the context. The singular shall be taken to mean the plural and the plural shall mean the singular when required by the context of this chapter. The following definitions apply to this chapter:
"Development" means the new construction of buildings or other facilities, or the substantial rehabilitation of existing buildings or other facilities. "Disposition" means the sale, lease or any other form of property disposition. "Fair market value" means the amount that a willing buyer would pay a willing seller for the real property, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts, in an open and competitive market under all conditions requisite to the sale, and considering the property's highest and most profitable use.
"Fair market rental value" means the rental income that a real property would most likely command on the open market. Said rent shall be supported by a review of current rents paid, and asked, for comparable property and/or space.
"Fair reuse value" means the amount that a willing buyer would pay a willing seller for the real property, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts, considering the proposed use of the property and the sale or rental value of the property with the conditions, covenants, restrictions, and development costs associated with the negotiated disposition and development. "Lease" means the grant by the City of a leasehold estate, rental, license, or other exclusive or nonexclusive right under a less than fee simple estate to use or occupy real property owned by the City for a set term, periodic term such as month-to-month, or at will, with or without the payment of rent, lease payments, license fees, or other consideration; but does not include an easement, equitable servitude, or franchise. A "lease" includes a sublease or an assignment of a lease by the City. "NODO" means a Notice of Development Opportunity. For purposes of this chapter, a "NODO" also includes a Request for Proposals (RFP), Request for Qualifications (RFQ), or any other public solicitation of proposals, bids, offers, or statements of interest for acquiring and developing real property.
"Sale," "sell," "conveyance" or "convey" means the sale, grant, contribution or other voluntary disposition by the City to another of a fee simple interest in real property, with or without consideration, by grant deed, quitclaim, deed in lieu of foreclosure, or other transfer; but does not include a lease, license, or grant of a leasehold interest, easement, equitable servitude, option interest, security interest, or other estate in real property less than a fee simple interest. "Real property" means land, buildings, structures and other fixtures or immovable property affixed to the land.

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10 SECTION 2. Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061 (b) (3), a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This ordinance establishes protocols for the sale or lease of City owned property and does not specifically approve a development that is defined as a project under CEQA. The ordinance, in and of itself, does not affect environmental factors listed in the CEQA Initial Study Checklist because it does not cause a physical change or disturbance to the environment. The common sense exemption applies in this case.

SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The City Clerk shall cause this Ordinance, or a summary hereof, to be published in a newspaper of general circulation, published in the County of Los Angeles and circulated in the City, and if applicable, to be posted, in accordance with Section 36933 of the California Government Code; shall certify to the adoption of this ordinance and shall cause a certified copy of this ordinance, together with proof of publication, to be filed in the Office of the City Clerk.

SECTION 5. This ordinance shall go into effect and be in full force effective at 12:01 a.m. on the thirty-first (31st) day after its passage.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of San Fernando this 15th day of June, 2026.

Joel Fajardo, Mayor of the City of
San Fernando, California
ATTEST:

Julia Fritz, City Clerk
APPROVED AS TO FORM:

Richard A. Padilla, City Attorney
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11 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 Ordinance No. 1743 which wasintroduced on June 8, 2026, and adopted by the City Council of the City of San Fernando, California at a regular meeting thereof held on the 15th day of June, 2026, 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 June, 2026.

Julia Fritz, City Clerk
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AGENDA REPORT
PUBLIC WORKS DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1222 WWW.SANFERNANDO.GOV REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Bonnie Tam, Director of Public Works

Date: June 15, 2026
Subject: Consideration to Approve an Agreement with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority for Cost Sharing for the Installation of Monitoring Equipment and Monitoring Pursuant to the Harbor Toxic Pollutants Total Maximum Daily Load
RECOMMENDATION:

It is recommended that the City Council:
a. Approve an Agreement with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (GWMA) (Attachment “A” – Contract No. 2520) for Cost Sharing for the Installation of Monitoring Equipment and Monitoring Pursuant to the Harbor Toxic Pollutants Total Maximum Daily Load (Harbor Toxic Pollutants TMDL); and b. Authorize the City Manager, or designee, to execute the agreement and related documents.

BACKGROUND:

1. On May 11, 2011, the California Regional Water Quality Control Board, Los Angeles Region, adopted the Dominguez Channel and Greater Los Angeles and Long Beach Harbor Toxic Pollutants Total Maximum Daily Load (Harbor Toxic Pollutants TMDL). This TMDL requires cities and agencies tributary to the Los Angeles and San Gabriel Rivers to conduct monitoring for toxic pollutants as defined by that TMDL. The City’s stormwater drains to the Los Angeles River.

2. On November 8, 2012, the Los Angeles Regional Water Quality Control Board (Regional Board) adopted Order R4-2012-0175, the Municipal Separate Storm Sewer System Permit (MS4 Permit), which became effective on December 28, 2012.

3. On July 23, 2021, the newest MS4 Permit, Order No. R4-2021-0105, was adopted and became effective on September 11, 2021. These MS4 Permits include the Harbor Toxic Pollutants TMDL and incentives for permittees willing to work cooperatively with other agencies in watershed monitoring efforts.

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Consideration to Approve an Agreement with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority for Cost Sharing for the Installation of Monitoring Equipment and Monitoring Pursuant to the Harbor Toxic Pollutants Total Maximum Daily Load

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4. On December 2, 2013, the City Council approved participation in the Upper Los Angeles River Enhanced Watershed Management Plan Group (ULAR Group) and authorized the City’s participation in the Upper Los Angeles River Enhanced Watershed Management Plan and the associated Coordinated Integrated Monitoring Plan (CIMP).

5. On June 27, 2014, the ULAR Group submitted a draft of the CIMP to the Regional Board for approval, which includes Harbor Toxic Pollutants TMDL monitoring.

6. On June 15, 2015, the City, along with numerous other agencies, entered into an agreement with GWMA to cost share the installation of the monitoring equipment and conduct monitoring for toxic pollutants as required by the Harbor Toxic Pollutants TMDL. This agreement expired on June 30, 2018.

7. On June 8, 2018, the City Council approved a subsequent agreement which expired on June 30, 2023.

8. On March 18, 2024, the City Council approved the most recent Agreement (Attachment “B” – Contract No. 2232) which will expire on June 30, 2026.

ANALYSIS:

The Harbor Toxic Pollutants Total Maximum Daily Load (TMDL) is a Clean Water Act program that establishes limits on pollutants entering the Los Angeles/Long Beach Harbor watershed to protect water quality. The Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority supports member cities by coordinating regional water quality, stormwater, and watershed compliance efforts.

The proposed agreement with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority allows the City to participate in a regional cost-sharing program for the installation of monitoring equipment and the collection of water-quality data required under the TMDL. Participation helps the City meet federal and state water quality compliance requirements in a cost-effective manner by sharing monitoring expenses, technical expertise, and reporting responsibilities with other local agencies. The program also supports regional collaboration to improve watershed health, identify sources of pollution, and protect water quality throughout the Los Angeles Harbor watershed.

To continue to achieve the objectives of the TMDL, Permittees desired to install three (3) monitoring stationsin the Los Angeles River at Wardlow Road, in the San Gabriel River and Coyote Creek near Spring Street, and conduct water quality monitoring at said stations. To reduce costs, GWMA was requested to act as the fiduciary agent for the installation, maintenance, and monitoring at the three (3) monitoring stations. All participating permittees will share the cost, responsibility, and testing results that are specific to their drainage area.

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Consideration to Approve an Agreement with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority for Cost Sharing for the Installation of Monitoring Equipment and Monitoring Pursuant to the Harbor Toxic Pollutants Total Maximum Daily Load

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The attached agreement includes a cost share matrix. The City is within the Upper Los Angeles River Watershed of the Greater Los Angeles River Watershed, which eventually drains into the Los Angeles Harbor. Cost shares were developed based on each watershed group paying 1) a shared baseline fee, 2) a direct administrative fee, and 3) an indirect administration fee. GWMA will assess annually a 5% to 10% direct administrative fee for non-GWMA permittees to cover the cost of administering this program and indirect administration fee of 2% to 5%.

In order to continue participating in this program, the City will be required to enter into a new Agreement with GWMA, effective July 1, 2026, and expires June 30, 2031. Due to the number of permittees involved, the Agreement is not subject to altering or customization.

BUDGET IMPACT:

Under the terms of the Agreement, the City would be obligated to pay a total not-to-exceed cost share amount of $3,526.15 over the five-year term of the agreement. The annual cost share fee will be funded from Measure W (Fund 023). The following is a breakdown of the annual cost share fee:

Fiscal Year Annual Baseline
Fee
Direct Admin Fee
(10%)
Indirect Admin
Fee (5%)
Total Max Cost
(5 Years)
2026-2027 $566.11 $56.61 $28.30 $651.02
2027-2028 $588.76 $58.88 $29.43 $677.07
2028-2029 $612.31 $61.23 $30.61 $704.14
2029-2030 $636.81 $63.68 $31.83 $732.32
2030-2031 $662.27 $66.23 $33.10 $761.60
Total Cost Over Five Years $3,526.15
CONCLUSION:

Staff recommends the City Council approve an agreement with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (GWMA) for cost Sharing for the installation of monitoring equipment and monitoring pursuant to the Harbor Toxic Pollutants Total Maximum Daily Load (Harbor Toxic Pollutants TMDL) and authorize the City Manager, or designee, to execute the agreement and related documents.

ATTACHMENTS:

A. Contract No. 2520
B. Contract No. 2232 (provided via digital link)
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03/16/26

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12664/0001/3227079-1

AGREEMENT

BETWEEN THE LOS ANGELES GATEWAY REGION INTEGRATED REGIONAL

WATER MANAGEMENT JOINT POWERS AUTHORITY

AND THE

CITY OF SAN FERNANDO

FOR COST SHARING FOR THE INSTALLATION OF MONITORING EQUIPMENT

AND MONITORING PURSUANT TO THE HARBOR TOXIC POLLUTANTS TMDL This Agreement is made and entered into as of April 9, 2026 by and between the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (“GWMA”), a California Joint Powers Authority, and the City of San Fernando, (the “Permittee”). The Permittee and the GWMA are collectively referred to as the “Parties.”

RECITALS
WHEREAS, the mission of the GWMA includes the equitable protection and management of water resources within its area;
WHEREAS, for the purposes of this Agreement, the term “MS4 Permittees” shall mean those public agencies that are co-permittees to a National Pollutant Discharge Elimination System Municipal Separate Storm Sewer System Permit (“MS4 Permit”) issued by the Los Angeles Regional Water Quality Control Board (“Regional Board”); WHEREAS, the United States Environmental Protection Agency established the Total Maximum Daily Loads (“TMDL”) for Toxic Pollutants on March 23, 2012, with the intent of protecting and improving water quality in the Dominguez Channel and the Greater Los Angeles and Long Beach Harbor Waters (“Harbor Toxic Pollutants TMDL”); WHEREAS, the Harbor Toxic Pollutants TMDL regulates certain discharges from National Pollutant Discharge Elimination System (“NPDES”) permit holders, requiring organization and cooperation among the MS4 Permittees;
WHEREAS, the Permittee manages, drains or conveys storm water into at least a portion of the Los Angeles River including its estuary or Coyote Creek or the San Gabriel River;
WHEREAS, various MS4 Permittees desire to achieve the objectives of the Harbor Toxic Pollutants TMDL by continuing to maintain the monitoring station in the Los Angeles River at Wardlow Road, monitoring station in the San Gabriel River near Spring Street, and monitoring station in the Coyote Creek, also near Spring Street and conducting monitoring at said monitoring stations (collectively “Monitoring Stations”) to ensure consistency with other regional monitoring programs and usability with other TMDL related studies;
ATTACHMENT "A"
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WHEREAS, continuing maintenance of the Monitoring Stations and future monitoring requires administrative coordination for the various MS4 Permittees that the GWMA can and is willing to provide;
WHEREAS, the Lower Los Angeles River Watershed Management Group and the Lower San Gabriel River Watershed Management Group have been formed pursuant to the MS4 Permit and oversee and manage the monitoring program for the Harbor Toxic Pollutants TMDL within their respective watersheds;
WHEREAS, the members of the GWMA are the Cities of Artesia, Bell, Bell Gardens, Bellflower, Cerritos, Commerce, Compton, Cudahy, Downey, Hawaiian Gardens, Huntington Park, La Mirada, Lakewood, Long Beach, Lynwood, Maywood, Montebello, Norwalk, Paramount, Pico Rivera, Santa Fe Springs, Signal Hill, South Gate, Vernon, Whittier, Water Replenishment District of Southern California, Central Basin Municipal Water District, and the Long Beach Water Department (“GWMA Members”); WHEREAS, because of the financial savings and benefits resulting from this costsharing arrangement, other MS4 Permittees that are not GWMA Members may request to participate in the cost sharing of the Monitoring Costs for the maintenance of the Monitoring Stations and the costs of monitoring conducted at the Monitoring Stations (collectively “Monitoring Costs”);
WHEREAS, the GWMA Board of Directors authorized the GWMA to enter into individual separate agreements with such individual MS4 Permittees (which shall not have voting rights in the GWMA) for the sole purpose of cost sharing the Monitoring Costs; WHEREAS, because GWMA Members already pay annual membership fees that pay for GWMA administrative costs, GWMA Members that participate in the cost share for the Monitoring Costs shall pay an administrative fee that is less than that the administrative fee charged to MS4 Permittees that are not GWMA Members; WHEREAS, certain private NPDES permit holders that are subject to the Harbor Toxic Pollutants TMDL have also expressed interest in participating in the cost share for the Monitoring Costs and procuring the monitoring data generated pursuant to this Agreement in order to satisfy their own permit obligations; WHEREAS, the current agreements that cover the cost share arrangements for the Monitoring Costs through fiscal year 2025-2026 will expire on June 30, 2026.

WHEREAS, it is currently unknown how many MS4 Permittees and private NPDES permit holders will ultimately participate in the cost sharing of the Monitoring Costs for fiscal years 2026-2027 through 2030-2031;
WHEREAS, depending on how many MS4 Permittees and private NPDES permit holders ultimately participate in the cost sharing for the Monitoring Costs, each participating Permittee’s annual cost share amount will be adjusted and the GWMA will notify each participating Permittee of its adjusted annual cost share amount in writing; CONTRACT NO. 2520 June 15, 2026 Special & Regular CC Mtg Page 267 of 576 03/16/26

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WHEREAS, the Permittee desires to share in the Monitoring Costs; WHEREAS, the Parties have determined that authorizing GWMA to hire consultants as necessary to maintain the Monitoring Stations and conduct the monitoring required by the Harbor Toxic Pollutants TMDL will be beneficial to the Parties; WHEREAS, the Permittee agrees to pay: (a) its proportional share of the Monitoring Costs to be incurred by the GWMA in accordance with the Cost Sharing Formula reflected in Exhibit “A”; and (b) applicable administrative fees to cover administrative costs; and
WHEREAS, the role of the GWMA is to: (1) invoice and collect funds from the Permittee to cover its portion of the Monitoring Costs; and (2) hire and retain consultants to maintain Monitoring Stations and conduct monitoring at the Monitoring Stations.

NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties do hereby agree as follows:

Section 1. Purpose. The purpose of this Agreement is for the Permittee to cost share in the Monitoring Costs.

Section 2. Cooperation. The Parties shall fully cooperate with one another to achieve the purposes of this Agreement.

Section 3. Voluntary Nature. The Parties voluntarily enter into this Agreement.

Section 4. Binding Effect. This Agreement shall become binding on GWMA and the Permittee.

Section 5. Term. This Agreement shall commence on July 1, 2026 and shall expire on June 30, 2031, unless terminated earlier pursuant to this Agreement.

Section 6. Role of the GWMA.
(a) The GWMA shall invoice and collect funds from the Permittee to cover the Monitoring Costs.
(b) The GWMA shall administer the consultants’ contracts for the Monitoring Costs. Provided the Permittee has paid all outstanding invoices to the GWMA to cover the Monitoring Costs and administrative costs, the GWMA will provide the Permittee with the monitoring data collected from the Monitoring Stations and any associated reports.
(c) The GWMA is authorized to, and may negotiate and enter into agreements with, and collect funds from general and individual NPDES permit holders, that are not MS4 Permittees, for cost-sharing the Monitoring Costs in order to reduce the total costs incurred by the MS4 Permittees.

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Section 7. Financial Terms.
(a) Annual Payment Amount. The Permittee shall pay no more than the following amounts for each of the five fiscal years (June 30-July 1) listed below (“Annual Payment Amount”):

Fiscal Year 2026-2027:

Five Hundred Sixty-Six Dollars and Eleven Cents ($ 566.11) Fiscal Year 2027-2028:

Five Hundred Eighty-Eight Dollars and Seventy-Six Cents ($ 588.76) Fiscal Year 2028-2029:

Six Hundred Twelve Dollars and Thirty-One Cents ($ 612.31) Fiscal Year 2029-2030:

Six Hundred Thirty-Six Dollars and Eighty-One Cents ($ 636.81) Fiscal Year 2030-2031:

Six Hundred Sixty-Two Dollars and Twenty-Seven Cents ($ 662.27) Each Annual Payment Amount includes the Permittee’s Cost Share Amount identified in Exhibit “A”, attached hereto and incorporated herein.
(b) Administrative Costs. In addition to the Annual Payment Amount, the Permittee shall also pay its proportional share of the GWMA’s staff time for hiring the consultants, managing the consultants’ contracts, and invoicing the Permittee and legal fees incurred by the GWMA in the performance of its duties under this Agreement (“Direct Costs”), and audit expenses and other overhead costs (“Indirect Costs”), referred to collectively herein as the “Administrative Costs Payment Amount”. The Administrative Costs Payment Amount will be added to the Permittee’s annual invoice to cover the Permittee’s share of the administrative costs.
i. GWMA Members. If the Permittee is a GWMA Member, then the Administrative Costs Payment Amount does not include the GWMA’s Indirect Costs, which GWMA Members absorb as part of their annual membership dues. The rate charged to GWMA Members in order to recover the Direct Costs portion of the Administrative Costs Payment Amount will range between zero percent (0%) and five percent (5%) of the of the Permittee’s Cost Share Amount identified in Exhibit “A.” On an annual basis the GWMA will evaluate the percentage rate charged to GWMA Members to ensure it adequately recovers the GWMA’s cost of performing its duties under this Agreement. Based on this review, the GWMA Board will establish the rate charged to recover its Direct Costs for the next fiscal year. The GWMA will provide the Permittee, through the respective Chairs of the Lower San Gabriel River and Lower Los Angeles River Watershed Management Groups, fifteen (15) days’ written notice prior to July 1st of the fiscal year in which a new rate will take effect.

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ii. Non-GWMA Members. If the Permittee is not a GWMA
Member, then the Administrative Costs Payment Amount will include the GWMA’s Indirect Costs. The rate charged to Non-GWMA Members in order to recover Direct Costs will range between five percent (5%) and ten percent (10%) of the Permittee’s Cost Share Amount identified in Exhibit “A.” The rate charged to Non-GWMA Members in order to recover Indirect Costs will range between two percent (2%) and five percent (5%) of the Permittee’s Cost Share Amount identified in Exhibit “A.” On an annual basis the GWMA will evaluate the percentage rates for both Direct and Indirect Costs charged to NonGWMA Members to ensure they adequately recover the GWMA’s cost of performing its duties under this MOU. Based on this review, the GWMA Board may increase or decrease the rates charged to recover its Direct and Indirect Costs for the next fiscal year. The GWMA will provide the Permittee, through the respective Chairs of the Lower San Gabriel River and Lower Los Angeles River Watershed Management Groups, fifteen (15) days’ written notice prior to July 1st of the fiscal year in which a new rate will take effect.
(c) Adjustment of Cost Share Based on Number of Participants. The Annual Payment Amount and the Administrative Costs Payment Amount identified in this Section 7 (“Financial Terms”) represent the maximum dollar amounts that the Permittee is required to submit to the GWMA, but may be reduced based on the final number of MS4 Permittees that participate in the cost sharing for the Monitoring Costs. (d) Reserve Credits. If the actual cost share amount plus administrative costs collected by GWMA from all participating permittees in the Harbor Toxic Pollutants TMDL program are less than the Annual Payment Amount, plus the Administrative Costs Payment Amount, paid by all permittees in a particular year, then the GWMA will notify the Chairs of the Lower San Gabriel River and Lower Los Angeles River Watershed Management Groups. The Chairs will direct GWMA on how to apply the excess balance, which may include carrying the balance over to cover permittee costs in one or more subsequent years. GWMA reserves the right to transfer funds from the excess balance to maintain a minimum balance of $10,000 in its account dedicated to the Harbor Toxic Pollutants TMDL program at all times, per GWMA’s Administrative Budget Policy.

Notwithstanding the forgoing, the Administrative Costs Payment Amount charged to nonGWMA Members for Indirect Costs will be retained by GWMA and is not subject to a credit.
(e) Funds remaining in the possession of the GWMA at the expiration or earlier termination of this MOU shall be promptly returned to the Permittee in proportion to the Cost Share Amount identified in Exhibit “A” or rolled over into the subsequent MOU for the Harbor Toxic Pollutants TMDL if requested by the Permittee. (f) The Permittee’s Annual Payment Amount and Administrative Costs Payment Amount for the 2026-2027 fiscal year are due upon execution of this Agreement, but in no event later than September 30, 2026. For each subsequent fiscal year, commencing with the 2027-2028 fiscal year, the GWMA shall submit annual invoices to the Permittee for the Annual Payment Amount and Administrative Costs Payment Amount. Upon receiving an invoice from GWMA, each Permittee shall pay the Annual CONTRACT NO. 2520 June 15, 2026 Special & Regular CC Mtg Page 270 of 576 03/16/26

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Payment Amount and Administrative Costs Payment Amount set forth in the invoice to the GWMA within forty-five (45) days of receipt.
(g) The Permittee shall be delinquent if its invoiced payment is not received by the GWMA within forty-five (45) days after the invoice’s date. If the Permittee is delinquent, the GWMA will: 1) verbally contact the representative of the Permittee; and 2) submit a formal letter from the GWMA Executive Officer to the Permittee at the address listed in Section 11 of this Agreement. If payment is not received within sixty (60) days of the original invoice date, the GWMA may terminate this Agreement. However, no such termination may be ordered unless the GWMA first provides the Permittee with thirty (30) days written notice of its intent to terminate the Agreement. The terminated Permittee shall remain obligated to GWMA for its delinquent payments and any other obligations incurred prior to the date of termination. If the GWMA terminates this Agreement because the Permittee is delinquent in its payment, the Permittee shall no longer be entitled to the monitoring data collected from the Monitoring Stations. (h) Any delinquent payments by the Permittee shall accrue compound interest at the average rate of interest paid by the Local Agency Investment Fund during the time that the payment is delinquent.

Section 8. Independent Contractor.
(a) The GWMA is, and shall at all times remain, a wholly independent contractor for performance of the obligations described in this Agreement. The GWMA’s officers, officials, employees and agents shall at all times during the term of this Agreement be under the exclusive control of the GWMA. The Permittee cannot control the conduct of the GWMA or any of its officers, officials, employees or agents. The GWMA and its officers, officials, employees, and agents shall not be deemed to be employees of the Permittee.
(b) The GWMA is solely responsible for the payment of salaries, wages, other compensation, employment taxes, workers’ compensation, or similar taxes for its employees and consultants performing services hereunder.

Section 9. Indemnification and Warranty.
(a) The Permittee shall defend, indemnify and hold harmless the GWMA and its officers, employees, and other representatives and agents from and against any and all liabilities, actions, suits proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorney’s fees, for injury to or death of person(s), for damage to property (including property owned by the GWMA) for negligent or intentional acts, errors and omissions committed by the Permittee or its officers, employees, and agents, arising out of or related to that Permittee’s performance under this Agreement, except for such loss as may be caused by GWMA’s negligence or that of its officers, employees, or other representatives and agents, excluding the consultant. (b) GWMA makes no guarantee or warranty that any monitoring data prepared by the consultants shall be approved by the relevant governmental authorities.

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GWMA shall have no liability to the Permittee for the negligent or intentional acts or omissions of GWMA’s consultants.

Section 10. Termination.
(a) The Permittee may terminate this Agreement for any reason, or no reason, by giving the GWMA prior written notice thereof, but the Permittee shall remain responsible for its entire Annual Payment Amount through the end of the current fiscal year during which Permittee terminates the Agreement and shall not be entitled any refund of any portion of said Annual Payment Amount. Moreover, unless the Permittee provides written notice of termination to the GWMA by February 15th immediately prior to a new fiscal year, the Permittee shall also be responsible for its Annual Payment Amount through the end of such new fiscal year (by way of example only, if the Permittee terminates on March 1st, 2027, the Permittee is responsible for the Annual Payment Amounts for both fiscal years 2026-2027 and 2027-2028. If the Permittee terminates on February 10, 2027, the Permittee is responsible for its Annual Payment Amount only for Fiscal year 2026-2027, not for fiscal year 2027-2028). If the Permittee terminates the Agreement, the Permittee shall remain liable for any loss, debt, or liability otherwise incurred through the end of the new fiscal year.
(b) The GWMA may, with a vote of the GWMA Board, terminate this Agreement upon not less than thirty (30) days written notice to the Permittee. Any remaining funds not due and payable or otherwise legally committed to Consultant shall be returned to the Permittee.

Section 11. Miscellaneous.
(a) Other NPDES Permit Holders. Individual or general NPDES permit holders who are not MS4 Permittees that receive Harbor Toxic Pollutants TMDL monitoring requirements in their NPDES permits may wish to participate in this cost share for the Monitoring Costs in order to receive the monitoring data collected from the Monitoring Stations. Upon receipt of a written request from an NPDES permit holder to participate in this cost share, the GWMA will either reject or accept the NPDES permit holder’s participation in the cost share arrangement. If accepted, the NPDES permit holder will enter into a separate cost share agreement with the GWMA that will require the NPDES permit holder to pay annually at least twenty-five thousand dollars ($25,000) (“Private Monitoring Fee”) for the Monitoring Costs, with an annual cost of living adjustment based on the CPI-All Urban Consumers for the Los Angeles Area as published by the U.S. Department of Labor, Bureau of Labor Statistics (or any successor thereto). The calculation shall be made using the immediate prior 12-month index ending in January. Failure to pay the Private Monitoring Fee by the date set forth in the cost share agreement will result in termination of the NPDES permit holder’s participant status.

An NPDES permit holder accepted as a participant will only be entitled to receive the monitoring data collected from the Monitoring Stations for any fiscal year in which the participant has paid its Private Monitoring Fee. The Private Monitoring Fee will be applied as a credit toward the Permittee’s Annual Payment Amount in proportion to the Permittee’s Cost Share Amount identified in Exhibit “A.” CONTRACT NO. 2520 June 15, 2026 Special & Regular CC Mtg Page 272 of 576 03/16/26

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(b) Notices. All Notices which the Parties require or desire to give hereunder shall be in writing and shall be deemed given when delivered personally or three (3) days after mailing by registered or certified mail (return receipt requested) to the following address or as such other addresses as the Parties may from time to time designate by written notice in the aforesaid manner:

To GWMA:

Ms. Grace Kast
Executive Officer
16401 Paramount Boulevard
Paramount, CA 90723
To the Permittee:

City of San Fernando
117 Macneil Street
San Fernando, CA 91340
Attn: Maria Padilla
(c) Amendment. The terms and provisions of this Agreement may not be amended, modified or waived, except by a written instrument signed by all Parties. (d) Waiver. Waiver by either the GWMA or the Permittee of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver, by the GWMA or the Permittee, to any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach of any provision of this Agreement. (e) Law to Govern: Venue. This Agreement shall be interpreted, construed, and governed according to the laws of the State of California. In the event of litigation between the Parties, venue shall lie exclusively in the County of Los Angeles. (f) No Presumption in Drafting. The Parties to this Agreement agree that the general rule than an agreement is to be interpreted against the Party drafting it, or causing it to be prepared, shall not apply.
(g) Severability. If any term, provision, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and this Agreement shall be read and construed without the invalid, void, or unenforceable provisions(s).
(h) Entire Agreement. This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, whether written or oral, with respect thereto.

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(i) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute but one and the same instrument, provided, however, that such counterparts shall have been delivered to all Parties to this Agreement. (j) Legal Representation. All Parties have been represented by counsel in the preparation and negotiation of this Agreement. Accordingly, this Agreement shall be construed according to its fair language.
(k) Authority to Execute this Agreement. The person or persons executing this Agreement on behalf of Permittee warrants and represents that he or she has the authority to execute this Agreement on behalf of the Permittee and has the authority to bind Permittee.

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on their behalf, respectively, as follows:

DATE: _______________ LOS ANGELES GATEWAY REGION

INTEGRATED REGIONAL WATER

MANAGEMENT JOINT POWERS

AUTHORITY
________________________________
GWMA Chair
DATE: _______________ PERMITTEE

CITY OF SAN FERNANDO

Signature

Print Name

Print Title
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EXHIBIT “A”

COST SHARE MATRIX

ATTACHED
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