Staff Contact Kanika Kith, City Manager
MAYOR JOEL FAJARDO
VICE MAYOR VICTORIA GARCIA
COUNCILMEMBER MARY MENDOZA
COUNCILMEMBER MARY SOLORIO
COUNCILMEMBER PATTY LOPEZ
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CITY OF SAN FERNANDO
CITY COUNCIL
MEETING AGENDA
SPECIAL MEETING – 5:00 PM
REGULAR MEETING – 6:00 PM
MONDAY, JUNE 15, 2026
CITY HALL COUNCIL CHAMBERS
117 MACNEIL STREET
SAN FERNANDO, CA 91340
Please visit the City’s YouTube channel to live stream and watch previously recorded City Council meetings, which is also available with Spanish subtitles at:
https://www.youtube.com/c/CityOfSanFernando
In accordance with the Americans with Disabilities Act of 1990, if you require a disability-related modification/accommodation to attend or participate in this meeting, including in-person translation services, or other services please call the City Clerk Department at (818) 898-1204 or email at [email protected] at least 2 business days prior to the meeting.
SPECIAL MEETING - PUBLIC PARTICIPATION OPTIONS
WATCH THE MEETING
Live stream with audio and video, via YouTube, at: https://www.youtube.com/c/CityOfSanFernando
SUBMIT PUBLIC COMMENT IN PERSON
Members of the public may provide comments in person in the City Council Chambers during the Public Comments section of the Agenda by submitting a comment card to the City Clerk.
SUBMIT PUBLIC COMMENT VIA EMAIL
Members of the public may submit comments by email to [email protected] no later than 12:00 p.m. the day of the meeting, to ensure distribution to the City Council prior to consideration of the agenda. Comments received via email will be distributed to the City Council and made part of the official public record of the meeting.
CALL-IN TO PROVIDE PUBLIC COMMENT LIVE DURING THE SPECIAL MEETING Members of the public may call-in at the start of the meeting. Comments will be heard in the order received, and limited to three minutes. If necessary, the call-in period may be extended by the Mayor.
Note: This is audio only and no video.
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Special and Regular Meeting Notice and Agenda – June 15, 2026
Call-in Telephone Number: (669) 900-6833
Meeting ID: 852 3763 3366
Passcode: 138302
When connecting to the Zoom meeting to speak, you will be placed in a virtual “waiting area,” with your audio disabled. When it is your turn to speak, you will be identified by announcing the last four digits of your telephone number. To unmute press *6 on your phone and begin your comment.
CALL TO ORDER - SPECIAL MEETING 5:00 P.M. (CLOSED SESSION)
ROLL CALL
TELECONFERENCING REQUESTS/DISCLOSURE
APPROVAL OF SPECIAL MEETING AGENDA (CLOSED SESSION)
PUBLIC STATEMENTS FOR SPECIAL MEETING (CLOSED SESSION)
There will be a three (3) minute limitation for each member of the audience who wishes to make comments relating to City Business. Anyone wishing to speak, please fill out the blue form located at the Council Chambers entrance and submit it to the City Clerk. When addressing the City Council, please speak into the microphone and voluntarily state your name and address.
RECESS TO CLOSED SESSION
A) CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54954.9 (D)(1) – EXISTING
LITIGATION
Case Name: Lenin Garcia Saurez v City of San Fernando
Case Number: Case 24CHCV03094
B) CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957 AND 54957.6 – PUBLIC
EMPLOYEE PERFORMANCE EVALUATION / CONFERENCE WITH LABOR NEGOTIATOR Title of Evaluated Employee: City Manager
Title of Unrepresented Employee for purposes of labor negotiation: City Manager City’s Designated Representative for purposes of labor negotiation: Richard Padilla, City Attorney C) CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957 – PUBLIC EMPLOYEE
PERFORMANCE EVALUATION
Title of Employee: City Attorney
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Special and Regular Meeting Notice and Agenda – June 15, 2026
D) CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6 Designated City Negotiator: City Manager Kanika Kith
Employees and Employee Bargaining Units:
San Fernando Management Group (SEIU, Local 721);
San Fernando Public Employees’ Association (SEIU, Local 721); San Fernando Police Officers Association;
San Fernando Police Officers Association Police Management Unit; San Fernando Police Civilian Association;
San Fernando Part-Time Employees’ Bargaining Unit (SEIU, Local 721); All Unrepresented Employees
RECONVENE FROM SPECIAL MEETING AND REPORT OUT FROM CLOSED SESSION
REGULAR MEETING - PUBLIC PARTICIPATION OPTIONS
WATCH THE MEETING
Live stream with audio and video, via YouTube, at: https://www.youtube.com/c/CityOfSanFernando
SUBMIT PUBLIC COMMENT IN PERSON
Members of the public may provide comments in person in the City Council Chambers during the Public Comments section of the Agenda by submitting a comment card to the City Clerk.
SUBMIT PUBLIC COMMENT VIA EMAIL
Members of the public may submit comments by email to [email protected] no later than 12:00 p.m. the day of the meeting, to ensure distribution to the City Council prior to consideration of the agenda. Comments received via email will be distributed to the City Council and made part of the official public record of the meeting.
CALL-IN TO PROVIDE PUBLIC COMMENT LIVE DURING THE REGULAR MEETING Members of the public may call-in between 6:00 p.m. and 6:15 p.m. Comments will be heard in the order received, and limited to three minutes. If necessary, the call-in period may be extended by the Mayor. Note: This is audio only and no video.
Call-in Telephone Number: (669) 900-6833
Meeting ID: 833 6022 0211
Passcode: 924965
When connecting to the Zoom meeting to speak, you will be placed in a virtual “waiting area,” with your audio disabled. When it is your turn to speak, you will be identified by announcing the last four digits of your telephone number. To unmute press *6 on your phone and begin your comment.
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Special and Regular Meeting Notice and Agenda – June 15, 2026
CALL TO ORDER - REGULAR MEETING 6:00 P.M. (OPEN SESSION)
ROLL CALL
TELECONFERENCING REQUESTS/DISCLOSURE
Recommend consideration of requests received for remote teleconference meeting participation made by members of the City’s legislative bodies, as permitted under the provisions of Assembly Bill (AB) 2449, Government Code Section 54953, and the City of San Fernando adopted Resolution No. 8215, effective March 1, 2023.
PLEDGE OF ALLEGIANCE
Led by City Clerk Julia Fritz
APPROVAL OF REGULAR MEETING AGENDA
Recommend that the City Council approve the agenda as presented and move that all ordinances presented tonight be read in title only as authorized under Government Code Section 36934.
DECORUM AND ORDER
The City Council, elected by the public, must be free to discuss issues confronting the City in an orderly environment. Members of the public attending City Council meetings shall observe the same rules of order and decorum applicable to the City Council (SF Procedural Manual). Any person making impertinent derogatory or slanderous remarks or who becomes boisterous while addressing the City Council or while attending the City Council meeting, may be removed from the room if the Presiding Officer so directs the sergeant-at-arms and such person may be barred from further audience before the City Council.
PUBLIC STATEMENTS
Members of the public may provide comments in person in the City Council Chambers during the Public Comments section of the Agenda by submitting a comment card to the City Clerk.
Members of the public may submit comments by email to [email protected] no later than 12:00 p.m. the day of the meeting to ensure distribution to the City Council and made part of the official public record of the meeting.
Members of the public may provide a live public comment by calling in between 6:00 p.m. and 6:15 p.m. CALL-IN INFORMATION: Telephone Number: (669) 900-6833; Meeting ID: 833 6022 0211; Passcode: 924965.
BUDGET STUDY SESSION NO. 4
1) DISCUSSION OF FISCAL YEAR 2026-2027 BUDGET STUDY SESSION NO. 4 June 15, 2026 Special & Regular CC Mtg Page 4 of 576
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Recommend that the City Council:
a. Review and discuss the Fiscal Year 2026-2027 Proposed Budget; and b. Provide direction to staff, as appropriate.
CONSENT CALENDAR
Items on the Consent Calendar are considered routine and may be disposed of by a single motion to adopt staff recommendation. If the City Council wishes to discuss any item, it should first be removed from the Consent Calendar.
2) CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE WARRANT REGISTER Recommend that the City Council adopt Resolution No. 26-062 approving the Warrant Register. 3) RECEIVE AND FILE STATUS UPDATES FOR CITY PROJECTS AND CITY COUNCIL PRIORITIES Recommend that the City Council receive and file the status report for FY 2025-2026 City Projects and City Council Priorities, and provide direction, as appropriate. 4) RECEIVE AND FILE THE GENERAL PLAN HOUSING ELEMENT ANNUAL PROGRESS REPORT FOR CALENDAR YEAR 2025
Recommend that the City Council receive and file the General Plan Housing Element Annual Progress Report for Calendar Year 2025.
5) CONSIDERATION TO ADOPT A RESOLUTION SETTING THE FISCAL YEAR 2026-2027 ARTICLE
XIIIB APPROPRIATIONS (GANN) LIMIT
Recommend that the City Council adopt Resolution No. 8460 setting the Fiscal Year 2026-2027 Article XIIIB Appropriation Limit at $85,753,733.
6) RECEIVE AND FILE STATUS UPDATE ON WELL NO. 2A NITRATE TREATMENT PLANT EXPANSION PROJECT, PROJECT NO. 7630
Recommend that the City Council Receive and file the status report for the Well No. 2A Nitrate Treatment Plant Expansion Project, Project No. 7630.
7) CONSIDERATION TO APPROVE AUTHORIZATION TO WRITE-OFF BAD DEBT FOR FISCAL YEAR 2025-2026 FROM UNCOLLECTIBLE UTILITY ACCOUNTS
Recommend that the City Council to approve and authorize staff to write-off bad debts for Fiscal Year 2025-2026 from uncollectible utility accounts receivable. 8) 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
Recommend that the City Council:
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Special and Regular Meeting Notice and Agenda – June 15, 2026
a. Adopt Resolution No. 8461 accepting $623,804 in Senate Bill 1: The Road Repair and Accountability Act of 2017 Funds from the California Transportation Commission and approving the list of projects for Fiscal Year 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; and c. Authorize the City Manager, or designee, to submit all required documents to the California Transportation Commission.
9) 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
Recommend that the City Council:
a. Adopt Resolution No. 8464 approving continued participation in the Los Angeles Urban County Community Development Block Grant Program and approving a Cooperation Agreement (Contract No. 2519) with the Los Angeles County Development Authority; and b. Authorize the City Manager, or designee, to make non-substantive changes and execute all related documents.
10) CONSIDERATION TO ADOPT A RESOLUTION APPROVING 2026 UPDATES TO
COUNCILMEMBER EXPENSE REIMBURSEMENT POLICY AND CITY EMPLOYEE EXPENSE
REIMBURSEMENT POLICY
Recommend that the City Council:
a. Adopt Resolution No. 8455, approving updates to City Policies and Procedures to include revisions to two existing City policies: Councilmember Expense Reimbursement Policy; and City Employee Expense Reimbursement Policy; and
b. Authorize the City Manager to take related actions to execute and implement the updated policies and procedures.
11) CONSIDERATION TO APPROVE A SECOND READING TO ADOPT AN ORDINANCE ESTABLISHING
PROTOCOLS FOR PROPOSED SALE, LEASING, AND/OR DEVELOPMENT OF CITY-OWNED LAND Recommend 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”.
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12) 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 Recommend that the City Council:
a. Approve an Agreement with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (Contract No. 2520) for Cost Sharing for the Installation of Monitoring Equipment and Monitoring Pursuant to the Harbor Toxic Pollutants Total Maximum Daily Load; and
b. Authorize the City Manager, or designee, to execute the agreement and related documents.
PUBLIC HEARINGS
13) A PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTIONS TO CONTINUE MAINTENANCE OF THE CITY’S STREETLIGHTS, CONFIRMING THE ANNUAL ASSESSMENT, AND APPROVING THE FINAL ENGINEER’S REPORT FOR FISCAL YEAR 2026-2027 LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT
Recommend that the City Council:
a. Conduct a Public Hearing by following the attached Public Hearing Procedure; b. Adopt Resolution No. 8465 ordering the continued maintenance of the City’s streetlights and confirming the annual assessment; and
c. Adopt Resolution No. 8466 approving the Final Engineer’s Report for the Fiscal Year 2026-2027 Landscaping and Lighting Assessment District. 14) A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION APPROVING FISCAL YEAR 2026-2027 ANNUAL BUDGET
Recommend that the City Council:
a. Conduct a Public Hearing;
b. Review and discuss the Fiscal Year 2026-2027 Proposed Budget; and c. Pending public testimony, adopt Resolution No. 8467 approving the Fiscal Year 2026-2027 Budget, subject to such modifications or amendments as may be stated by the City Council in its motion to approve the Resolution.
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ADMINISTRATIVE REPORTS
15) DISCUSSION AND CONSIDERATION TO APPROVE A SECOND READING TO ADOPT ORDINANCE NO. 1742 THAT APPROVES A PROPOSED ZONING CODE UPDATE, SUBDIVISION CODE UPDATE, SPECIFIC PLAN-5 UPDATE, OBJECTIVE DESIGN STANDARDS, AND ZONING MAP UPDATE (HOUSING IMPLEMENTATION PLAN PROJECT OR HIP PROJECT)
Recommend that the City Council approve for second reading and adopt Ordinance No. 1742 that was introduced for first reading at the City Council meeting of May 18, 2026, in title only, and waive all further readings titled, “An Ordinance of the City Council of the City of San Fernando, California, Approving a Zoning Code Update, Subdivision Code Update, Specific Plan5 Update, Objective Design Standards, and Zoning Map Update; these actions collectively referred to as the Housing Implementation Plan Project or “HIP Project” in its entirety. 16) DISCUSSION AND CONSIDERATION TO APPROVE PROPOSED PROGRAM FORMAT AND DATE
FOR THE SECOND SAN FERNANDO IMMIGRATION FORUM
Recommend that the City Council:
a. Discuss the proposed meeting format and date for the second San Fernando immigration forum; and
b. Provide direction on the proposed date, event format, potential partners and approve a budget of up to $6,850 for event administration.
17) DISCUSSION AND CONSIDERATION TO ADOPT A RESOLUTION APPROVING UPDATES TO THE
CITY COUNCIL PROCEDURAL MANUAL, INCLUDING RELATED PROCEDURES AND
ADMINISTRATIVE PROVISIONS
Recommend that the City Council:
a. Consider Adopting Resolution No. 8421 approving previous updates as of May 12, 2026 to the City Council Procedural Manual;
b. Consider additional edits as outlined in Attachment “B”, “C” and “D”; and c. Provide staff with direction, as applicable.
18) DISCUSSION AND CONSIDERATION TO APPROVE A THIRD AMENDMENT TO THE COLLECTION
SERVICES AGREEMENT WITH CONSOLIDATED DISPOSAL SERVICE, LLC DBA REPUBLIC
SERVICES
Recommend that the City Council:
a. Approve a Third Amendment to the Collection Services Agreement with Consolidated Disposal Service, LLC dba Republic Services (Contract No. 1731 (c), extending the term by six months from February 14, 2027 to August 13, 2027, and removes application of the fleet age metric during the extension period; and
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b. Authorize the City Manager, or designee, to make non-substantive changes and execute the Agreement and all related documents.
19) DISCUSSION AND CONSIDERATION TO APPROVE AN AMENDMENT TO THE CITY MANAGER
EMPLOYMENT CONTRACT ESTABLISHING COST OF LIVING INCREASE TERMS OR OTHER
ALTERNATIVE AMENDMENTS TO COMPENSATION TERMS AS MAY BE WARRANTED If following closed session deliberation, the City Council is prepared to approve a final contract amendment in open session, true and correct copies of the proposed amendment will be made available to the public prior to any final action along with such other pre-approval reporting as may be required under the Brown Act.
Subject to final closed session deliberations, it is recommended that the City Council:
a. Receive an oral summary outlining the key points of the contract terms prior to taking action on the matter as required under Government Code Section 54953(c)(3); and b. Entertain a motion to:
(i) Approve a First Amendment to the City Manager Employment Agreement (Contract No. 2447(a)); and
(ii) Authorize the Mayor to execute the First Amendment on behalf of the City Council. 20) DISCUSSION REGARDING SAN FERNANDO CHRISTMAS PARADE 2026 (TABLED FROM THE JUNE 8, 2026 CITY COUNCIL MEETING)
This item was agendized by Councilmember Patty Lopez.
City Council consideration and direction to staff regarding the designation of EMPRENDE as the official organizing entity and the development of a partnership framework necessary to successfully implement the San Fernando Christmas Parade 2026. 21) DISCUSSION REGARDING OFFICE 133 COUNCILMEMBER WORKSPACE IMPROVEMENTS (TABLED FROM THE JUNE 8, 2026 CITY COUNCIL MEETING)
This item was agendized by Councilmember Patty Lopez.
City Council discussion to direct staff to provide essential office appliances, including a microwave, coffee maker, and refrigerator, in Office 133 to support Councilmembers and improve the functionality of the office as a workspace and meeting area.
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22) DISCUSSION REGARDING CITY EVENT PERMITTING AND FACILITY RESERVATION PROCESS (TABLED FROM THE JUNE 8, 2026 CITY COUNCIL MEETING)
This item was agendized by Councilmember Patty Lopez.
City Council discussion to direct staff to establish a clear and efficient process for event applications and facility reservations. The process should include a defined timeline for acknowledging receipt of applications, confirming facility availability, reviewing requests in a timely manner, and providing applicants with approval or denial decisions within a specified timeframe. Staff responsibilities and points of contact should also be clearly identified to ensure consistent communication and customer service.
23) DISCUSSION AND DIRECTION TO STAFF REGARDING CITY COUNCIL PRIORITIES AND
INITIATIVES
This item was agendized by Mayor Joel Fajardo.
City Council to provide direction to staff.
24) DISCUSSION AND CONSIDERATION TO PLACE AREA B RESOLUTION AND RELATED
INFORMATION ONLINE
This item was agendized by Mayor Joel Fajardo.
City Council discussion to direct the City Manager to post the Area B resolution and related information on the City’s website and social media, or provide alternative direction.
STAFF COMMUNICATION INCLUDING COMMISSION UPDATES
GENERAL CITY COUNCIL/BOARD MEMBER COMMENTS AND LIAISON UPDATES ADJOURNMENT The meeting will adjourn to the Regular Meeting of July 6, 2026.
AFFIDAVIT OF POSTING
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting.
Dated: _________________ at: ____________
Signed By: _____________________________
Agendas and complete Agenda Packets (including staff reports and exhibits related to each item) are posted on the City’s `Internet website www.sanfernando.gov. These are also available for public reviewing prior to a meeting in the City Clerk Department. Any public writings distributed by the City Council to at least a majority of the Councilmembers regarding any item on this regular meeting agenda will also be made available at the City Clerk Department at City Hall located at 117 Macneil Street, San Fernando, CA, 91340 during normal business hours. In addition, the City may also post such documents on the City’s website at www.sanfernando.gov. In accordance with the Americans with Disabilities Act of 1990, if you require a disability-related modification/accommodation to attend or participate in this meeting, including auxiliary aids or services please call the City Clerk Department at (818) 898-1204 or [email protected] at least 48 hours prior to the meeting.
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AGENDA REPORT
ADMINISTRATIVE SERVICES DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-7307 WWW.SANFERNANDO.GOV REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Erica D. Melton, Director of Administrative Services
Date: June 15, 2026
Subject: Discussion of Fiscal Year 2026-2027 Budget Study Session No. 4 – Police Department
RECOMMENDATION:
It is recommended that the City Council:
a. Review and discuss the Fiscal Year (FY) 2026-2027 Proposed Budget (Attachment “A”); and b. Provide direction to staff, as appropriate.
BACKGROUND:
1. On March 2, 2026, the City Council received and filed the FY 2025-2026 Mid-Year Budget update and FY 2026-2027 Budget Outlook. This marked the kick-off of the FY 2026-2027 Budget Season.
2. On March 23, 2026, the City Council held a Special Study Session to develop the City’s five-year Strategic Plan for Fiscal Years 2026-2031.
3. Throughout April 2026, the City Manager and Director of Administrative Services met with each Department to develop the FY 2026-2027 City Manager’s Proposed Budget, which includes revenues and expenditures for the General Fund, Enterprise Funds, and all Special Revenue Funds.
4. On May 4, 2026, the FY 2026-2027 Proposed Budget was made available to the City Council and subsequently posted to the City’s website (www.sanfernando.gov/budget).
5. On May 13, 2026, an in-person Town Hall meeting, which was also live-streamed on YouTube, was held to present the FY 2026–2027 Proposed Budget, where members of the public were able to participate and ask questions.
6. On May 18, 2026, Budget Study Session #1 was held, which involved a presentation of the budget overview, City Manager’s Office, and Administrative Services Department June 15, 2026 Special & Regular CC Mtg Page 15 of 576
Discussion of Fiscal Year 2026-2027 Budget Study Session No. 4 – Police Department
(Attachment “B”). Comments and follow-up actions discussed during the meeting are attached (Attachment “C”).
7. On May 26, 2026, Budget Session #2 was held, with presentations from the City Clerk, Community Development, and Recreation & Community Services Departments (Attachment “C”). Comments and follow-up actions discussed during the meeting are attached (Attachment “D”).
8. On June 8, 2026, Budget Study Session #3 was held, with a presentation from the Public Works Department (Attachment “D”). Comments and follow up action were received regarding bringing back information for a city-hosted or co-sponsorship of the Welcome Home Veterans Day event and monthly Veterans meeting.
9. A final budget study session is scheduled for June 15, 2026, with the Police Department. A Public Hearing to adopt the Fiscal Year 2026-2027 Budget is scheduled for Monday, June 15, 2026 Regular City Council Meeting.
ANALYSIS:
Budget Overview.
The theme of the FY 2026-2027 City Manager’s Proposed Budget is “Maintaining Core Services During Challenging Economic Conditions.” The City is entering this fiscal year amid economic volatility, with inflation, slowing revenue growth, and fiscal pressures at all levels of government.
Like many jurisdictions across California, cities are facing difficult fiscal decisions due to rising costs and slowing revenue growth. Several municipalities have been forced to implement staffing furloughs, hiring freezes, or the postponement of cost-of-living adjustments and salary increases to balance their budgets. The City of San Fernando remains in a stronger position, and at this time, is not proposing staffing furloughs or freezing salary increases. However, these regional actions highlight the broader fiscal environment and reinforce the need for continued prudence and disciplined financial management to ensure the City’s long-term stability.
The Proposed Budget takes a conservative approach, projecting flat revenue growth and limiting ongoing expenditure increases, while prioritizing the maintenance of essential City operations and ensuring that San Fernando remains safe and beautiful. Despite significant external cost pressures, the Proposed Budget maintains core service levels and prioritizes fiscal stability by aligning staff capacity with essential service delivery. In accordance with the City’s Budget Policy, the Proposed General Fund Budget represents a balanced budget. In fact, with $29,980,451 in projected revenues and $29,904,851 in proposed expenditures, there is a nominal budget surplus of $75,600.
Budget Study Session No. 1: City Council Comments & Follow-Up Items.
Budget Study Session No. 1 was held on May 18, 2026, in which the City Council received a presentation on the budget overview, the City Manager’s Office, and Administrative Services June 15, 2026 Special & Regular CC Mtg Page 16 of 576
Discussion of Fiscal Year 2026-2027 Budget Study Session No. 4 – Police Department
Department. Comments and follow-up actions discussed during the meeting are provided as Attachment “C”.
Budget Study Session No. 2: City Council Comments & Follow-Up Items.
Budget Study Session No. 2 was held on May 26, 2026, in which the City Council received a presentation from the City Clerk, Community Development, and Recreation & Community Services Departments. Comments and follow-up actions discussed during the meeting are provided as Attachment “C.”
Budget Study Session No. 3: City Council Comments & Follow-Up Items.
Budget Study Session No. 3 was held on June 8, 2026, in which the City Council received a presentation from the Public Works Department. Comments and follow-up actions discussed during the meeting are provided below. Responses to items are provided in blue. • Request for staff to bring back information for a (1) city-hosted or co-sponsorship of the Welcome Home Veterans Day event and (2) city-hosted or co-sponsorship for a monthly Veterans meeting:
(1) Welcome Home Veterans Day Event: Staff estimate the cost to host the Welcome Home Veterans Recognition Event in the City for approximately 80 attendees would total $3,770. This cost includes event supplies, refreshments, veteran recognition items, staff time and contingency expenses. Should the City Council direct staff to participate as a co-sponsor for the event, the estimated City contribution would be $1,178 pending the final scope of the event and partner contributions. Details regarding the estimated budgets are as follows:
Category Description City
Sponsored
City
Co-Sponsored
Decorations Patriotic decor, banners, flags, and event
supplies
$300 $0
Refreshments Light refreshments for approximately 80
attendees
400 0
Recognition Pins Vietnam Veteran lapel pins for Veterans in attendance
200 200
Certificates Certificate printing, folders, and
materials
150 150
Program
Materials
Printed programs, signage, and name
tags
175 175
Staff Supplies Event setup and operational supplies 75 75 Staff Time 36 hours/10 hours at $47.80/hour 1,720 478
Contingency Unanticipated expenses 350 100
Total Estimated Costs: $3,370 $1,178
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Discussion of Fiscal Year 2026-2027 Budget Study Session No. 4 – Police Department
(2) Monthly Meetings: Staff estimate the cost to host monthly Veterans Meetings Event in the City for approximately 40 attendees would total $350 per month at an annual cost of $. This cost includes event supplies, refreshments, veteran recognition items, staff time and contingency expenses. Should the City Council direct staff to participate as a co-sponsor for the event, the estimated City contribution would be $1,178 pending the final scope of the event and partner contributions. Details regarding the estimated budgets are as follows:
Category Description City
Sponsored
City
Co-Sponsored
Venue Las Palmas Learning Center ($275/mo) $3,300 $0
Refreshments &
Pastries
Light refreshments and pastries for
approximately 40 attendees ($400/mo)
4,800 0
Staff Supplies Event setup and operational supplies 75 75 Staff Time 1 hr/mo at $176.72/hour 2,121 2,121
Total Estimated Costs: $10,296 $2,196
BUDGET IMPACT:
The total Proposed Budget for all funds is approximately $58.7 million. The Proposed General Fund budget is $29.9 million (1% decrease from FY 2025-2026). In accordance with the City’s Budget Policy, the FY 2026-2027 Proposed General Fund Budget represents a balanced budget, with General Fund revenues of $30.0 million, expenditures of $29.9 million and proposed enhancements of $75,600.
CONCLUSION:
It is recommended that the City Council review the FY 2026-2027 Proposed Budget.
ATTACHMENTS:
A. Fiscal Year 2026-2027 Proposed Budget (available digitally through web link and hardcopy at the Finance counter)
B. Budget Study Session # 1 – May 18, 2026 Agenda Report (available digitally through web link) C. Budget Study Session #2 – May 26, 2026 Agenda Report (available digitally through web link) D. Budget Study Session #3 – June 8, 2026 Agenda Report (available digitally through web link) Exhibit A: Supplemental Item #2 – Attachment “G” (available digitally through web link) Exhibit B: Additional Christmas Parade Information
June 15, 2026 Special & Regular CC Mtg Page 18 of 576
EMPRENDE ORGANIZATIONAL STRUCTURE & RESPONSIBILITIES FOR THE SAN
FERNANDO PARADE IF COORDINATED WITH ANNUAL TREE LIGHTING EVENT Based on the information provided by Emprende, the City will be responsible for the following items under the co‑sponsorship. The details below outline the additional costs required to coordinate activities beyond those included in the Tree Lighting Event:
• Permits (RCS)
• City permits (if any): $500
• LAFD: $500
• Public Safety (PD)
• Command Post & Traffic/Safety: no additional costs
• Traffic Control Plan and Implementation (PW)
• Contracted: $30,000*
• PW Staff Time - Supplemental: $5,000
• Logistical support in regards to securing access to private parking lots for staging and disbanding (BCRC)
• Lots on San Fernando Rd, next to old skate park city lot (start): Included in PW Staff Time above
• St. Ferdinand Church (end): Included in PW Staff Time above
TOTAL ESTIMATED ADDITIONAL COSTS FOR COMBINED TREE LIGHTING/SAN FERNANDO PARADE: $36,000
* NOTE: Confirming amount as more details become available and coordinating with Emprende and other organizations to fundraise traffic control and implementation and all other City costs.
ATTACHMENT "D"
EXHIBIT "B"
June 15, 2026 Special & Regular CC Mtg Page 19 of 576
CHRISTMAS PARADE – EMPRENDE
Organizational Structure and Responsibilities
1. Organizational Structure
General Coordination: EMPRENDE – Celia Rivas
Overall responsible for the parade organization, strategic decision-making, and primary liaison with the City of San Fernando.
Logistics Coordination: Dolores Rodríguez
Responsible for planning and execution of parade logistics, including operational coordination of participants, timing, routes, and event order. Notifications to the residents and businesses regarding street closure impacts.
Public Relations (PR)
Beatriz Medrano
Responsible for institutional communication, coordination of special guests, and event protocol support.
Bessy Arteaga
Support in public relations, participant coordination, communication with organizations, and event outreach.
Support Team: Volunteers and assigned staff
Responsible for on-site operational support, assisting participants, managing flow control, supporting staging areas, and general event assistance. Volunteer recruitment, orientation, safety rules, route monitors, communications plan...
2. EMPRENDE Responsibilities in the Parade
Communication & Invitations
June 15, 2026 Special & Regular CC Mtg Page 20 of 576
• Sending official invitations to participants and special guests • RSVP coordination and attendance confirmation
• Distribution of event guidelines, schedules, and requirements Participant Coordination
• Coordination of all participant contact lists
• Assignment and supervision of parade order
• Development of the official parade lineup
• Oversight of order compliance during the parade
Participant Logistics
• Coordination of staging areas
• Assignment of arrival and formation schedules
• Supervision of participant flow in and out of staging areas • Support for floats, groups, and special elements organization Special Guests & Protocol
• Coordination of VIP guests
• Assignment of meeting points and escort support
• (Basic) Complete event protocol management
• Guest reception and assistance
Operational Support
• General oversight of participant-side parade execution • Resolution of operational issues during the event
• Coordination with city staff and security when needed • Support for last-minute adjustments
- Determine entry categories and how many
of each.
- Entries will determine the space you need at
the staging and disbanding areas (start/end)
- Develop entry application
- Communication Plan
EVENT Logistics:
-Trash along route
- Portable restrooms needs along
route
- Lighting needs along route
- Sound at start
- EMS/1st Aid for parade route
June 15, 2026 Special & Regular CC Mtg Page 21 of 576
LEGEND
Start and End
Event Footprint
Closures
Staging Areas
Holiday Parade 2026 • S. Workman to Brand Blvd (.4 mile route) • START– S. Workman St. | END– Brand Blvd • Staging @ Start:
Empty lots on SF Rd and Celis St
• Disband @ End:
Right on Brand onto Celis City Parking Lots (Tesla),
only closing half of Brand Blvd.
HOLIDAY TREE LIGHTING FOOTPRINT
Tree/Stage– Maclay & SF Rd
Vendors– Maclay b/w SF Rd & Pico
Photos w/ Santa– Lopez Adobe
HOLIDAY PARADE & TREE LIGHTING
TENTATIVE SCHEDULE
10am Street Closures (City/TCC)
9am HTL Event Setup (RCS)
12pm Vendor Access for Setup on Maclay
1pm Parade Staging (Emprende)
2pm Parade (Emprende)
5pm HTL Event (RCS)
6pm Tree Lighting
June 15, 2026 Special & Regular CC Mtg Page 22 of 576
June 15, 2026 Special & Regular CC Mtg Page 23 of 576
This Page
Intentionally
Left Blank
June 15, 2026 Special & Regular CC Mtg Page 24 of 576
AGENDA REPORT
ADMINISTRATIVE SERVICES DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1200 WWW.SANFERNANDO.GOV REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Erica D. Melton, Director of Administrative Services
Date: June 15, 2026
Subject: Consideration to Adopt a Resolution Approving the Warrant Register RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 26-062 (Attachment “A”) approving the Warrant Register.
BACKGROUND:
For each City Council meeting the Finance Division prepares a Warrant Register for City Council approval. The Register includes all recommended payments for the City. Checks, other than special checks, generally are not released until after the City Council approves the Register. The exceptions are for early releases to avoid penalties and interest, excessive delays and in all other circumstances favorable to the City to do so. Special checks are those payments required to be issued between Council meetings such as insurance premiums and tax deposits. Staff reviews requests for expenditures for budgetary approval and then prepares a Warrant Register for City Council approval and or ratification. Items such as payroll withholding tax deposits do not require budget approval.
The Director of Administrative Services/City Treasurer hereby certifies that all requests for expenditures have been signed by the department head, or designee, receiving the merchandise or services thereby stating that the items or services have been received and that the resulting expenditure is appropriate. The Director of Administrative Services/City Treasurer hereby certifies that each warrant has been reviewed for completeness and that sufficient funds are available for payment of the warrant register.
ATTACHMENT:
A. Resolution No. 26-062, including:
Exhibit A: Payment Demands/Voucher List
June 15, 2026 Special & Regular CC Mtg Page 25 of 576
ATTACHMENT “A”
RESOLUTION NO. 26-062
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO,
CALIFORNIA, ALLOWING AND APPROVING FOR PAYMENT DEMANDS
PRESENTED ON DEMAND / WARRANT REGISTER NO. 26-062
THE CITY COUNCIL OF THE CITY OF SAN FERNANDO DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS:
1. That the Payment Demand/Voucher List (EXHIBIT “A”) as presented, having been duly audited, for completeness, are hereby allowed and approved for payment in the amounts as shown to designated payees and charged to the appropriate funds as indicated.
2. That the City Clerk shall certify to the adoption of this Resolution and deliver it to the City Treasurer.
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 26 of 576
RES. NO. 26-062
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. 26-062, 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 here unto 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 27 of 576
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June 15, 2026 Special & Regular CC Mtg Page 47 of 576
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June 15, 2026 Special & Regular CC Mtg Page 50 of 576
AGENDA REPORT
CITY MANAGER’S OFFICE 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1202 WWW.SANFERNANDO.GOV REVIEW: ☒ Deputy City Clerk/Management Analyst ☒ Assistant to the City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
Date: June 15, 2026
Subject: Receive and File Status Updates for City Projects and City Council Priorities RECOMMENDATION:
It is recommended that the City Council receive and file the status report for Fiscal Year (FY) 2025-2026 City Projects and City Council Priorities, and provide direction, as appropriate.
ANALYSIS:
This report is meant to provide City Council and the community with regular status updates and major City efforts, including, but not limited to, FY 2025-2026 approved enhancements, capital improvement projects, and City Council priorities. Changes to each project since the last meeting have been tracked and are shown in red. Attachment “C” shows City contracts that are approaching the end of the term. Attachment “E” provides a summary of 2025 Legislative Advocacy & Funding Request Letters.
COMPLETED PROJECTS:
City Manager’s Office & City Clerk’s Office. Date Completed Title: Records Retention Policy Update January 2025
Title: Virtual San Fernando – Website Redesign & My San Fernando App February 2026 Title: Amend City Commission Ordinance April 2026
Community Development Department. Date Completed
Title: CDBG Neighborhood Cleanup Program June 2025
Title: New Position – Planning Manager March 2025
Title: Mixed Use and Specific Plan Overlay Districts March 11, 2025 Title: Graffiti Program (with Public Works and Police Department) February 18, 2025 Title: Homeless Action Plan Implementation and Management March 2025 Title: Zoning Code Reorganization May 5, 2025
Title: Landscape Ordinance May 5, 2025
Title: Outdoor Dining Ordinance May5, 2025
Title: Climate Action Resilience Plan (CARP) & General Plan Updates April 6, 2026 June 15, 2026 Special & Regular CC Mtg Page 51 of 576
Receive and File Status Updates for City Projects and City Council Priorities
COMPLETED PROJECTS CONTINUED:
Finance. Date Completed
Title: American Rescue Plan Act (ARPA) Allocations February 18, 2025 Title: Online Bill Payment System (Paymentus) February 2025 Title: Microsoft 365 (M365) Upgrade December 2025
Police Department. Date Completed
Title: Police Department Overtime February 2025
Title: Law Enforcement Technology Improvements –
Handheld Ticket Writers April 8, 2025
eSubpoena May 19, 2025
Title: Mental Health Clinician Program September 29, 2025 Cameras/ Access Control Project May 2025
UASI EOC 2023 December 2025
Public Works Department. Date Completed
Title: Civic Center Beautification (Painting) Project January 2025 Title: Position Reclassification: Convert Four (4) Part-Time Maintenance Workers to Two (2) Full-Time Maintenance
Workers for Graffiti and Tree Maintenance October 31, 2024 Title: Street Resurfacing Project – Phase 3 November 2024 Title: Curb Painting, Street Striping, and Street Markings Spring 2025 Title: Pioneer Park Playground Renovation Project January 23, 2025 Title: Urban Forest Management Plan March 31, 2025
Title: Phase 1: Fog Seal Coating Public Parking Lots September 15, 2025 Title: Well 2A Refurbishment Project December 14, 2025
Title: Bus Shelter Rehabilitation Project January 5, 2026 Title: Residential Water Service Shut Off Policy January 1, 2026 Title: Outdoor Dining in Public ROW February 17, 2026
Title: Crosswalk Safety at Bike Path February 25, 2026
Title: Implementation of California Daylighting Law (AB 413) February 25, 2026 Title: Las Palmas HVAC Project March 2026
Title: School Zone Signage Safety Enhancement Initiative March 2026 Title: City Facility Condition Assessment Report June 2026 Recreation & Community Services. Date Completed
Title: Afterschool Teen Program October 7, 2024
Title: Park Opportunity Plan October 7, 2024
Title: San Fernando 115 Birthday Celebration Discussion March 2026 June 15, 2026 Special & Regular CC Mtg Page 52 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Active Projects
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
City Manager’s Office
1. Opportunity Sites
Analysis (Formerly
Downtown Master Plan)
Approved FY 22-23
budget to develop a
DTMP with robust
community outreach.
Guides future actions
for revitalization of
Downtown San
Fernando. Budget:
$297,675.
• 12-2023 to 3-2024:
Multimodal Survey
• 3-11-2024: Ad Hoc
Mtg #1
• 4-11-2024: CAC Mtg
#1
• 4-27-2024: Outreach
“Walkshop”
• 4-2024 to 5-2024:
Online Survey
• 7-2024: Existing
Conditions Analysis
• 9-16-2024: Phase 1
Findings to Council +
PPC
• Contract extended to
Dec 2025
• 6-11-2025: Ad Hoc
Mtg #2
December 2026 Kanika Kith/
Ron Garcia
June 15, 2026 Special & Regular CC Mtg Page 53 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
• 11-17-2025: Council
approved Option 1 –
Opportunity Site
Analysis
• Opportunity Sites
Analysis Kick Off
Meeting January
2026
2. East San Fernando Valley
Light Rail Transit Project
Metro project to build
light rail line in two
phases:
Phase 1 – 6.7 miles
along Van Nuys Blvd
with 11 stations.
Phase 2 – 2.5 miles
from Pacoima to
Sylmar/San Fernando
Metrolink. Funded by
Measure R & M.
• 2017-2020: City
comments on Draft
EIR
• 12-2010: Metro
Board certified Final
EIR with
safety/design
conditions
• 4-2022 to 9-2022:
Grade Crossing
Analysis
• 1-2024 to summer
2024: Supplemental
Phase 2 studies
• Status updates to
Council (2020, 2022,
2025)
Staff will return to
Council with a
third-party funding
agreement related
to the rail crossing
safety
improvement
project once
Metro has
documentation
ready.
Phase 1 – 2031;
Phase 2 – TBD
Will Pettener
June 15, 2026 Special & Regular CC Mtg Page 54 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
• 6-2025: CPUC Sec.
130 safety funding
discussions
• 6-25-2025: Multiagency safety
improvements
discussion
• 7-7-2025: Public
outreach results
presented
• 9-18-2025: Council
approved conditional
support for Scenario
2 • 12-4-25: Metro Board
of Director’s
approved planning
work on Scenario 2,
including early action
safety improvements
on rail crossings in
the City.
• 4-23-26: Metro’s
Board of Directors
approved design and
environmental
review for early
June 15, 2026 Special & Regular CC Mtg Page 55 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
action safety
improvements at all
at-grade crossings in
the City and two
nearby crossings in
the City of LA. The
scope of work was
approved at a value
of $10,701,189.
• 5-28-26: Staff met
with Metro to discuss
third-party funding
agreement
opportunities.
3. CDBG Small Business
Assistance Grant
Program (SBAP)
Provides grants to
businesses/property
owners for storefront
improvements
(signage, paint, antigraffiti, landscaping,
etc.). Total funding:
$137,861.
• 3-5-25: Application
period was opened
to the public.
Application period
was extended to
April 20, 2026.
• 4-9-26: Staff hosted a
SBAP workshop
where 11 prospective
businesses attended
to learn more about
the application
process.
None June 2026 Will Pettener/Ron
Garcia
June 15, 2026 Special & Regular CC Mtg Page 56 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
• 4-20-26: 39
applications were
received for the
grant.
• 5-12-26: A review
panel met to
evaluate and select
19 tentative
grantees.
• Staff anticipates
issuing agreements
and checks to
awardees by 6-18-26.
4. Partnership with
Asociación de
Jaliscienses Unidos en
Acción (AJUA)
Partnership with
AJUA to provide
services to the
immigrant
community.
• 9-3-25: Staff met
with AJUA
representatives to
discuss scope of
services and future
events.
• 10-6-25: City Council
approved MOU with
AJUA.
• AJUA will started on
11-17-25 at BCRC.
• Ongoing monthly
dates have been
None Ongoing Cristina Moreno
June 15, 2026 Special & Regular CC Mtg Page 57 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
scheduled for Q1
2026.
5. Strategic Plan
Development
A new plan will be
developed to replace
the current plan set
to expire in 2026.
• City Council
approved agreement
with Baker Tilly on
12-1-25 for Strategic
Planning Consulting
services.
• 1-23-26: staff met
with Baker Tilly to
develop a roadmap
and determine next
steps for outreach.
• In February 2026,
Baker completed
phase 1 of their
engagement process
by interviewing City
Council, Department
Heads, and
facilitating a citywide
staff survey
• 3-3-26: Executive
Staff took part in a
workshop with Baker
Tilly
A draft of the
Implementation
Action Plan (IAP) is
scheduled to
return to Council
for consideration
in July 2026.
Strategic Plan
has been
completed. The
IAP has an
anticipated
completion date
of July 20, 2026.
Will Pettener
June 15, 2026 Special & Regular CC Mtg Page 58 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
• 3-23-26: a City
Council Strategic Plan
workshop was held
at Las Palmas Park.
• On 4-6-26, a
community survey
was posted on the
City’s website.
• On 4-8-26 and 4-15-
26, Baker hosted
community
workshops for the
public to provide
feedback on the
process.
• 5-18-26: City Council
approved the
proposed strategic
plan.
City Clerk’s Office
1. Amend City Recognition
Requests
Policy/Procedure
Expands the City’s
Recognition Requests
Policy/Procedure to
include clear
descriptions and
• May 2025 – Council
adopted revised
Recognition Requests
Policy/Procedure
July 6, 2026 July 6, 2026 Julia Fritz
June 15, 2026 Special & Regular CC Mtg Page 59 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
guidelines for
Council-issued
recognitions
(Resolutions,
Proclamations,
Certificates, official
acknowledgments)
honoring
contributions,
achievements, or
service to the
community.
(replacing Awards
Program).
• 8-4-25: Council
directed staff to
return with revisions
to add guidelines for
Resolutions,
Proclamations, and
recognitions.
• 9-2-25: Council
directed staff to
return with options
to add Certificate of
Commendation,
potential Resolution
adoption, and
enhanced certificate
design options.
2. Quarterly Special City
Council Meeting
Celebration Event
Host Quarterly
Celebration Meetings
to acknowledge
Community
members, businesses
and organizations for
their contribution to
the community.
• Pre-Planning for Next
Celebration Event
Scheduled for:
January 26, 2026
• Pre-Planning for 2nd
quarterly Celebration
Event for:
July 27, 2026
October 2026
Consideration on
next Council
approved SemiAnnual
Celebration
Meeting Date.
Next Scheduled
Celebration
Event:
August 24, 2026
Julia Fritz
June 15, 2026 Special & Regular CC Mtg Page 60 of 576
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• On 1-5-2026, Staff
was directed to
reschedule the
January and July
2026 Celebration
Events to February
and August.
Community Development Department
1. Community Preservation
– Commercial Property
Education Program
Education &
maintenance program
to support
beautification of
commercial corridors.
Officers work directly
with business
community.
• 9-19-24: Presented to
Council
• 3-26-25: Postcards
distributed
• 3-30-25 & 5-7-25:
Workshops
• 5-12-25: Walking
inspections began
• 7-28-25: 22
businesses
recognized
• 10 -27- 2025: 19
businesses
recognized
None at this time FY 2026–2027
(Ongoing)
Rigoberto Guerrero
June 15, 2026 Special & Regular CC Mtg Page 61 of 576
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• February 2026: 55 to
be recognized
• 1-20-26: Walking
inspections will
resume
2. SCAG REAP 2.0 Grant $1.125M grant for
housing programs:
displacement
prevention, historic
survey update,
density bonus
ordinance, zoning
updates, streamlined
approvals.
• Council accepted
grant Oct 21, 2024
• Consultant (Rincon)
selected Mar 2025
• City tour held Mar
19, 2025
• Engagement pop-ups
hosted Jun–Aug 2025
(112 participants)
• Engagement Plan
approved May 5,
2025
• Community
Workshop December
4, 2025
• Draft documents
expected Spring 2026
• Public Review
Drafts
Documents
2/2026 –
3/2026
• Update and
Discussion
February 17,
2026
• Consideration
for Adoption
May 18, 2026
• City Council 2nd
Reading June
15, 2026
June 30, 2026 Ron Garcia
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Public Works Department
1. Carlisle Green Alley
Reconstruction Project
Revitalizes alley with
200+ trees, bioswales,
permeable surfaces,
lighting, and
bike/pedestrian path.
• PSA with TreePeople
approved Sep 3, 2024
• PSA with Craftwater
approved Jan 6, 2025
• Tentative design/
construction timeline
set (2025–2026)
• Craftwater submitted
60% plans, staff is
currently reviewing
them.
• Craftwater has
received Second
Amendment to
contract and is now
able to proceed with
rest of survey work at
Las Palmas Park, on
April 4, 2026
None at this time Dec 2026 Patsy Orozco
2. Calles Verdes Project
(Phase 1)
Parking lot 4, and
South Maclay (Pico
South Bound)
Bioswales and
bulbouts on Maclay
• City Clerk opened
four (4) sealed bids
on October 30, 2025
• Rejection of Bids
approved Jan 5, 2026
None at this time Patsy Orozco
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Ave, stormwater
redirection, coo
pavement, trees.
• TreePeople was
unable to obtain a
grant extension,
there is currently no
funding for this
project to move
forward.
3. Calles Verdes Project
Phase 2
Workman Drainage
Improvement/
Infiltration Project
• Received feasibility
study from CWE -
Aug 6, 2025
• Selection of projects
by awarding agency
in Spring 2026
• Agreement with
grant agency to be
scheduled for
upcoming council
meeting
TBD TBD Manuel Fabian
4. Las Palmas Park
Revitalization Project
Multi-field and facility
renovations, splash
pad, ADA playground,
lighting, exercise
equipment.
• Phase II construction
cost estimate
completed for RPOSD
Grant application
• Phase I and Phase II
of project presented
at Parks, Wellness,
None at this time June 2027 Patsy Orozco /
Willdan
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and Recreation
Meeting on 9/11/25
• Scope modifications
presented and
approved at 2/17/26
City Council Meeting
• Staff presenting
scope modifications
to granting agency
for final approval
5. Pacoima Wash
Connectivity Project (aka
Cindy Montañez Natural
Park Improvements)
$7.5M Caltrans grant
for Pacoima Wash
Path extension,
lighting, restrooms,
landscaping, and
permanent memorial
sign.
• On March 14, 2026,
the City held the first
Community Outreach
Workshop at Cindy
Montañez Natural
Park.
On May 18, 2026.
Kimley-Horn
presented project
concept to City
Council.
On May 30, 2026, the
City held the last
public outreach
event at Foodzilla.
None at this time June 2027 Patsy Orozco /
Willdan
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On August 3, 2026,
Kimley-Horn will
present final concept
to City Council.
6. San Fernando Mission
Trail Restoration Project
(Phase I–III)
Restores bike path
lighting with
LED/solar tech, smart
controls, and
sustainability
features.
• Scope includes
assessment, design,
implementation, and
maintenance
planning
• Project pending
funding availability.
None at this time TBD Patsy Orozco /
Willdan
7. HSIP Traffic Signal
Modification Project
Upgrades signals at 9
intersections with
poles, pedestrian
heads, controllers,
signage, and striping.
• Project closeout
underway
Construction
acceptance – July
2026
June 2026 Manuel Fabian /
Willdan
8. Citywide Traffic Signal
Synchronization Project
Synchronizes signals
at 13 intersections
with new GPS units,
controllers, and
timing charts.
• Construction started
on December 1,
2025.
• Contractor is working
on the installation of
GPS units and
completion of “punch
lists” items
Project acceptance
– July 2026
June 2026 Manuel Fabian /
Willdan
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9. Citywide Signage
Upgrades
Citywide replacement
of 3,100+ signs
(wayfinding,
regulatory, trolley).
• Phase I
(wayfinding/trolley
signs) complete
• Phase II starts FY
2025–26
• Staff has commenced
ordering signs for
Phase II . Signs
include school zone
signs, parking
restriction signs for
recently painted
curbs and other
signage to address
recent safety
concerns
• Signs received. Public
Works to schedule
installation of signs
• Staff began installing
signs around San
Fernando Middle
School and
O’Melveny
Elementary School.
None at this time Phase I
complete March
2026
Manuel Fabian/
Rodrigo Mora
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School areas
completed.
• Additional signs
ordered. Waiting for
the sign delivery to
start phase II. Phase
II finished 4-1-2026.
New sign to be
ordered 4-1-2026.
Quotes were
received for the
missing city street
signs. Will order signs
on 4/29/2026. Signs
were ordered. 75%
finished. 2/12/2026.
10. Pacoima Wash Bikeway
Project
1.34-mile Class I
bikeway with bridge,
bioswales, lighting,
and safety features.
• Construction 99%
complete
• Additional
bollards/curbs/
striping to address
vandalism
Notice of
Completion –
Summer2026
Summer 2026 Patsy Orozco
11. Residential Permit
Parking (RPP) Program
Updates to
residential/commerci
al parking policies,
smart meters, data
• Data collection and
engagement
completed
Administrative
Guidelines will be
presented to
Summer 2026 Greg Steigerwald /
Dixon Resources
Unlimited
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collection, and
enforcement
guidelines.
• 400+ survey
responses received
• Code amendments
split for Council
review Sep 2, 2025
• Meeting with
Finance, Police and
Public Works
Departments
conducted on
November 3, 2025
Council – May
2026
12. Fixed Route ADA
Sidewalk Improvement
Project
Upgrading damaged
and non-ADA
compliant sidewalks,
drive approaches,
curbs, gutters, and
ramps along key
transit routes
(Truman St., Hubbard
Ave., 7th St., Harding
Ave.).
• Field-check sites
• Prepare cost
estimates
• Prepare project
specifications
• Identify conflicting
utilities
• Identify business
access impacts
• Complete project
specifications,
construction
quantities, and
Award
construction
contract
(tentatively August
2026)
December 2026 Manuel Fabian /
Willdan
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advertise project for
construction.
13. Emergency Generator
Installation at Las Palmas
and Recreation Park
Facilities
Installation of
generators to ensure
park cooling centers
remain operational
during
outages/extreme
weather. Supports
resilience, emergency
services, and
community safety.
• Two generators
received and placed
on pads
• Design for
connection to
switching
mechanism/ building
in plan check
• Project remains in
plan check;
Engineering
coordinating with
Community
Development to
finalize. Waiting on
Fire Department
approval.
Engineering firm
hired to create the
wiring plans will
submit UL
specifications to the
fire department
again.
Approve Notice of
Completion
TBD Rodrigo Mora
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• Waiting for Fire
Department approval
1/21/2026. Waiting
for Fire Department
approval. 2-25-2026.
Same wait 4-1-2026.
Waiting on the fire
department and
plans from the
contractor.
4/28/2026. Plans
were approved by
the fire department,
waiting on our
building department
to approve.
5/12/2026.
14. Recreation Park
Bathroom Renovation
Renovation of existing
restrooms to create
safe, accessible,
sustainable facilities.
• Assessment &
planning underway
• Design criteria and
cost estimates in
progress
Procurement of
contractors next
• Construction to be
phased
To Be Determined To Be
Determined
Rodrigo Mora
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• Post-construction
inspection and
feedback planned.
TBD
• Scope of work and
funding TBD waiting
for funding and
approval 2-25-2026.
Same wait 4-1-2026.
• Same wait
4/28/2026. Same
5/12/2026.
15. Downtown Trash
Enclosures
Renovation of Cityowned trash
enclosures in the Mall
area.
• Community
Engagement Event
was held 10/8/25.
Council discussion
on preliminary
design – April 2026
Fall 2026 Manuel Fabian /
Willdan
16. City Owned Right-of-Way
Beautification
Beautification of
ROWs including
streetscapes,
medians, bikeways,
tree wells.
• Infrastructure
restoration
(irrigation, wiring,
backflow devices) in
progress Scope of
work and funding
TBD.
• Developing
comprehensive task
list
No Council action
anticipated
Ongoing Rodrigo Mora
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• Fall 2025 tree
planting planned for
vacant tree wells.
For more significant
beautification, more
funding would be
required. Staff
completed surface
restoration
(Painting)on 12 City
monument signs
citywide. Staff Report
was created and
presented, waiting
for approval.2-25-
2026. Numerous
sidewalk repairs and
beautifications tasks
have been performed
4-1-2026. Ongoing,
will have an 8 week
report on a future
meeting. 8 Week
update work plan
was submitted.
5/12/2026.
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17. Sidewalk Condition
Assessment
Citywide assessment
and mitigation plan
for sidewalk hazards.
• Precision Concrete
Cutting awarded
contract
• Sidewalk cuts in Grid
F,G, and E are
complete.
• Contractor finalizing
sidewalk cuts in Grid
D
No Council action
required
July 2026 Patsy Orozco
18. Project Labor Agreement Evaluation of PLA
benefits, costs, and
legal requirements.
• Conducting research
on scope, costs, legal
compliance
• Preparing report for
Council.
To be scheduled
for Council
consideration
TBD Richard Padilla /
Bonnie Tam
19. City Fleet Replacement &
Heavy Equipment
Program
Replacement and
optimization of City
fleet and heavy
equipment.
• Needs assessment in
progress
• Quinn Company
developing
loader/backhoe
specifications
• PD vehicle rightsizing under review.
Backhoe was
purchased along with
3 new Police vehicles,
Recommendations
to be included in
FY 25–26 Budget
Ongoing Bonnie Tam
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and 8 Water Division
trucks were leased.
Operations approved
fleet order has been
placed and waiting
for Ford Motor
Company to build.
Waiting on Ford to
build the new
vehicles 4-1-2026.
Waiting for the PO
change order for the
Quinn attachments
per Erica Melton.
5/12/2026.
20. Overhead Mast Arm
Street Name Sign
Replacement Project
Replacement of
outdated/damaged
street name signs.
• Citywide survey
planned
• Design to include
reflective/LED signs
• Coordination with
Caltrans required.
Ongoing TBD Manuel Fabian
21. Phase 2: Fog Seal Coating
Public Parking Lots
Additional pavement
treatments and
repairs for 5 lots.
• 4 bids received Sept
4, 2025
• Staff reviewing bids.
Manuel Fabian
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• Project scheduled for
FY26/27
22. Recreation Park Field
Rehabilitation
Replacement of failed
sod installation.
• RFP for consultant
under development.
Award of contract
Summer 2026
TBD Manuel
Fabian/Willdan
23. IPS Smart Meter
Installation
Replacement of coin
meters with smart
meters.
• 91 smart meters
installed March 2025
• Noncompliant meters
removed
• Phase 3 financial
analysis underway.
No Council action
required
Ongoing Greg
Steigerwald/Walter
Dominguez (PD)
24. Well 2A Nitrate Water
Treatment Facility
Project
Construction of a new
nitrate removal
treatment facility
capable of reducing
nitrate
concentrations to
levels compliant with
State Water
Resources Control
Board – Division of
Drinking Water
(DDW) standards.
• 9-2-25 - City Council
approval
• Envirogen designing
new 2000 gpm
system and
coordinating with
Civiltec and General
Pump for the new
building design – On
Going
• Well Treatment Plant
design had to be
reduced to 1600 gmp
due to liner installed
reduces diameter of
No Council action
anticipated.
Construction
December 30
2027 – DDW
permit to
operate by
January 2028
Victor Meza, Alex
Mendez and
Manuel Fabian
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casing . Staff is
working with Civiltec
and Envirogen to
design treatment
plant, As of June 8th
2026 staff has begun
to receive ION Resin
for new system. Staff
is preparing to
receive equipment
related to the new
treatment plant from
Envirogen and as a
result have to
relocate bins from
Well2 to a new
temporary location in
preparation of
construction
activities.
25. Well 2A Building
Expansion Project
Site improvements
and building upgrades
to house the
treatment process,
improve security, and
• 9-2-25 - City Council
approval for design
drawing
• Civiltec currently
working with
Envirogen and
Council approval
of Plans in Dec
2025; Council
approval for
construction in Jan
2026
March 2026
Staff is
requesting 2
year extension
from Granting
Agency due to
Victor Meza, Alex
Mendez and
Manuel Fabian
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extend the useful life
of the facility.
General Pump for
design of building.
Geotech services
conducted on Week
of Oct 6, 2025
• Staff received notice
of Sovern Immunity
for this project
allowing the City to
control its own set
backs and permitting
• Staff is requesting an
2 year extension
from Granting
Agency to complete
the project-Approved
• Civiltec developing
submittals for long
lead time equipment
MMC panels to get
these going asap.
• NPDES permit fees
are being processed
and – Driveway
expansion is being
requested through
LACity PW. June 8th
long lead times
on equipment
Dec 2027
estimated
completion of
new treatment
plant for Well2A
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2026 CEQA
Documents have
been developed and
are currently under
review
26. Phase 4: Annual Street
Resurfacing Program
Various • Developing Funding
for Annual Street
Resurfacing Program
• Staff will begin
working with
consultant to prepare
bid package
• Bid Package under
review before
publishing
• Project Scheduled for
FY26/27
Ongoing TBD Manuel Fabian
27. Graffiti Abatement
Program
Public Works
monitors and
addresses as
situations arise.
Addressed as
reported. Graffiti
continues to be
addressed daily,
additionally
Community
Development, Police
and Public Works
have implemented a
N/A Ongoing Bonnie Tam
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joint team effort to
combat graffiti. Staff
continue addressing
graffiti and
conducting meetings
on how to improve
the process. 2-25-
2026. Ongoing, over
4000 SQFT has been
removed 4-1-2026.
28. Crosswalk Safety at SF
Middle School
To be included in the
slurry seal project.
• Quotes from LA
County Public Works
and Contractor
received for
discussion. Finished
by LA County Public
Works.
TBD 2026 Bonnie Tam
29. Milkweed Project City Council has
requested the
installation of
additional Milkweed
at City parks,
including Cindy
Montanez Park. The
City will also seek out
opportunities to add
milkweed signage at
• Staff will assess costs
to implement
Council’s request.
• Funding and scope of
work to be
determined.
• Finished phase 1.
1/26/2026 Need
funding for further
First Council
Meeting in January
2026 Public Works
Operations
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the park and create
citywide milkweed
initiatives.
phases. Ongoing,
waiting for direction
and funding. 2-25-
2026. Waiting on
direction. In addition,
a project is in the
planning stages for
the Cindy Montañez
Park project, where
additional milkweed
could be installed
4/1/2026).
Police Department
1. Police Station Cameras
and Parking Lot Security
Improvement Project
Enhancing Police
Station security with
UASI 2022 grant
funds. Includes new
cameras, upgraded
resolution, modern
access control (key
fobs), and parking lot
security
improvements
(controlled access
gate, wrought iron
fence, mesh screen).
• Council approved
contract amendment
with BearCom on
Nov 18, 2024
• Cameras/Access
Control
implementation
began Nov 2024,
completed May 2025
• Staff received 2024
UASI Subaward
• Cameras/
Access Control:
No further
action
• Parking Lot
Security: 2024
UASI Subaward
Approved.
• Approve RFP
for parking lot
improvements
Parking Lot
Security: Dec
2027
CJ Chiasson
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Budget: $114,408
(cameras/access
control) and $89,982
(parking lot security).
Agreement from City
of LA
• Parking Lot Security
project pending draft
of RFP
2. Police Officer Staffing
Update
City Council approved
$40,000 recurring
budget for Corporal
Program and $15,000
for recruitment
enhancements.
Supports succession
planning and filling
vacancies.
• 30 sworn positions
filled
• 1 in field training
• 4 applicants in
background process
• 1 Officer in the police
academy and
another Officer
awaiting the start of
Module I of the
academy.
• 2nd commander
promoted.
• No additional
Council action
required
Ongoing CJ Chiasson
Administrative Services Department
1. Enterprise Resource
Planning Software
(Finance System)
The City’s current
financial system, Tyler
Eden, will no longer
be supported
effective March 2027.
• Initial vendor
demonstrations held
in June–July 2024.
• Two vendors invited
for onsite
Additional
hardware needs
(e.g., AP/Payroll
check printer,
check
Implementation
began Apr 2025;
up to 24 months
across 3 phases
(Financials,
Art Ziyalov
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Staff is preparing for
transition to a new
system. Phase I goals
include development
of General Ledger –
Financials and data
migration. The FY
2024-2025 Budget
includes $100,000 for
implementation and
$40,000 for ongoing
subscription costs.
presentations in
Aug–Sept 2024.
• City Council
approved Tyler
Technologies ERP on
Nov 18, 2024.
• Project kickoff call
held Mar 19, 2025
(timeline, resources,
multi-phase plan
reviewed).
• Test environment
deployed.
• Weekly project
meetings underway.
scanner/receipt
printer, cashiering
drawers, barcode
scanners, etc.) to
be included in FY
2025-2026 Budget.
Utility Billing,
HR/Payroll) but
was paused due
to staffing
shortages.
Deadline for full
completion
before Mar 1,
2027.
2. Update on City’s
OPEB/Pension Liabilities
The City provides fulltime employees with
CalPERS pension
benefits and OPEB for
certain retirees.
Council requested
informational
presentation on OPEB
actuarial report and
investments from the
• Staff coordinating
with actuarial
consultant (Foster &
Foster).
• Data provided to
consultant for
updated valuation
report (FY ending
June 30, 2025).
• Presentation
provided to City
OPEB presentation
to Council to be
provided along
with long-range
financial forecast
(September 2026)
September 2026 Erica Melton
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City’s financial
advisor.
Council on Feb 21,
2025.
• Appropriation of
$724,340 approved
in FY 2025-2026
Budget to continue
OPEB pre-funding.
3. Alternative Insurance
Risk Management Pool
Review
City Council direction
provided on
11/10/2025 to review
California Joint
Powers Insurance
Authority (JPIA) as an
alternative to current
Independent Cities
Risk Management
(ICRMA) for any cost
savings.
• Initial contact sent to
California JPIA in
November 2025 for
new public agency
partner criteria, but
no response
received.
• Additional inquiry
sent in Dec. 2025.
• On January 13, 2026,
CJPIA responded to
the City’s inquiry and
stated that the risk
pool takes a
conservative
approach in
accepting new
members with a
Police Department.
• October 2026
– Staff will
return to City
Council with
risk
management
pool options
and associated
costs
October 2026 Sergio Ibarra
June 15, 2026 Special & Regular CC Mtg Page 84 of 576
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Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
• Additional
information was
requested from CJPIA
on January 23, 2026,
regarding their new
membership
application process
and their ideal risk
loss history for new
members.
• On 2/9/2026 - Staff
met with the CJPIA
Representative to
review their Risk
Management
Programs. CJPIA
provided additional
information
regarding their ideal
risk management
profile for Cities that
have their own Police
Departments and
looking at a 10 Year
Loss Run. CJPIA Staff
stated they are highly
June 15, 2026 Special & Regular CC Mtg Page 85 of 576
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Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
selective for new
members.
• Additionally, CJPIA
staff will provide
clarification if they
provide insurance for
Cities that have their
own Water Systems.
• Staff followed up
with CJPIA regarding
next steps for
membership
evaluation.
• 05/18/26 – City
Council approved
issuing notice of
intent for withdrawal
to ICRMA
• 05/29/26 – Notice of
Withdrawal Letter
issued to ICRMA for
including in June
2026 Meeting
Agenda
• Staff will be
partnering with
June 15, 2026 Special & Regular CC Mtg Page 86 of 576
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Project Title Description Status / Completed
Actions
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Council Action
Tentative
Completion
Date
Staff Project Lead
Alliant Broker
Services to review
various options for
the City Risk
Management Pool
Insurance needs.
Recreation & Community Services
1. Campana de Libertad
Home Placement
Permanent home for
the 440-pound
bronze and copper
Liberty Bell replica,
donated by Mexican
dignitaries and
unveiled in San
Fernando on
September 16, 2023.
11-2025: Discuss with
Public Works regarding
potential location.
Council directed
Public Works and
Recreation
Department to
look at the
possibility of
housing the Bell at
City Hall.
FY 26-27 Julio C Salcedo
2. City of San Fernando -
FTBMI MOU for Rudy
Ortega Park
Update to existing
Agreement between
the City of San
Fernando and the
Fernandeño Tataviam
Band of Mission
Indians for Rudy
Ortega Sr. Park.
12/2025 Internal
meeting held and
direction gotten from
City Manager’s Office on
Working on an all
encompassing MOU with
FTBMI and having the
different existing MOUs
as subsections.
Tentatively for
June 2026
FY 26-27 Julio C Salcedo
June 15, 2026 Special & Regular CC Mtg Page 87 of 576
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Project Title Description Status / Completed
Actions
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Council Action
Tentative
Completion
Date
Staff Project Lead
3. 2026 Holiday Parade A proposed San
Fernando Holiday
Parade to celebrate
the season.
Staff is currently
evaluating the potential
costs of hosting a parade
in the City of San
Fernando and/or the
possibility of
collaborations to upset
costs. Next Meeting with
Emprende Organization
is on February 12, 2026.
Looking for
direction on the
vision for this
parade to be a
stand alone special
event or an
extension of the
current Tree
Lighting
Ceremony.
Will be part of
the FY 26-27
Budget
Presentation
Julio C Salcedo
4. Cesar Chavez Memorial
MOU with Pueblo Y Salud
Current MOU was
extended on March
2022 to March 2027.
This allows PYS
access, with advance
City approval, to
hosts fundraisers and
educational
programming
benefitting the
upkeep and
maintenance of the
memorial
No scheduled
programming at the
moment.
Tentatively
November 2026.
MOU Expires
March 2027.
Julio C Salcedo
5. Rudy Ortega FTBMI Sign
Project
The installation of
interpretive signage
depicting the Native
people of the region
Staff is currently making
sure that an MOU is
secured before looking
into bringing this project
Tentatively for July
2026
July 2026 Julio C Salcedo
June 15, 2026 Special & Regular CC Mtg Page 88 of 576
Receive and File Status Updates for City Projects and City Council Priorities
Project Title Description Status / Completed
Actions
Next City
Council Action
Tentative
Completion
Date
Staff Project Lead
and highlighting their
cultural importance.
in front of council. There
are long term
maintenance assurances
that need to be
addressed.
June 15, 2026 Special & Regular CC Mtg Page 89 of 576
Receive and File Status Updates for City Projects and City Council Priorities
BUDGET IMPACT:
There is no additional budget impact to receiving and filing this status report. All reported enhancements, projects, and priorities currently have sufficient funding as appropriated through the Fiscal Year 2025-2026 Adopted Budget.
CONCLUSION:
It is recommended that the City Council receive and file this status update on enhancements, projects and City Council priorities and provide direction, as appropriate.
ATTACHMENTS:
A. My San Fernando App Work Order Reports
B. ARPA – Expenditure Plan & Status Report
C. Expiring Contracts
D. Legislative Advocacy Updates
June 15, 2026 Special & Regular CC Mtg Page 90 of 576
25-Jul 25-Aug 25-Sep 25-Oct 25-Nov 25-Dec 26-Jan 26-Feb 26-Mar 26-Apr 26-May 26-Jun Total
Building Code Violation 17 9 4 7 7 4 8 6 3 12 10 1 88
Homelessness Outreach 18 13 9 11 9 19 20 35 11 25 30 2 202 Property Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
Total - Community Development 35 22 13 18 16 23 28 41 14 37 40 3 290 Abandoned Vehicle 13 19 9 9 4 10 8 4 6 16 7 2 107
Illegal Fireworks 26 0 3 1 3 1 1 0 0 0 1 1 37
Total - Police 39 19 12 10 7 11 9 4 6 16 8 3 144
Bus Stop/Shelter Maintenance 2 0 0 0 0 0 0 0 0 0 1 0 3
City Trees 7 6 50 9 7 4 4 4 6 14 42 7 160
Graffiti and Sign Posting on P 56 56 56 50 32 79 58 82 102 103 72 16 762 Graffiti on Private Property 57 20 19 14 4 37 8 21 15 64 40 10 309 Illegal Dumping and Litter 94 122 63 50 56 87 67 44 59 53 56 16 767 Park Maintenance 3 1 1 5 3 7 1 0 3 3 7 0 34
Sidewalk Repair 7 9 8 1 6 9 4 6 6 10 8 5 79
Storm Drain and Flooding 1 1 0 1 0 3 0 0 1 2 0 0 9
Street Lighting 20 16 8 12 15 30 36 20 20 19 16 1 213
Street Repair 15 6 6 1 5 12 17 12 10 8 13 0 105
Street Signage 6 4 6 7 3 14 5 8 55 55 28 4 195
Traffic Signal 4 12 13 9 5 7 9 6 10 9 8 2 94
Total - Public Works 272 253 230 159 136 289 209 203 287 340 291 61 2730 Total All Topics 346 294 255 187 159 323 246 248 307 393 339 67 3164 Police
Public Works
All Topics
One Year Analysis of Opened Requests
Ending June 2026
Community Development
ATTACHMENT "A"
June 15, 2026 Special & Regular CC Mtg Page 91 of 576
June 15, 2026 Special & Regular CC Mtg Page 92 of 576
ATTACHMENT "B"
ITEM STATUS PROJECT/PROGRAM BUDGETED SPENT CONTRACTED PROJ BALANCE 1 Complete Annual Street Repavement - Phase II 1,007,232 1,007,232 - - 2 Complete COVID-19 Relief/Response Reimbursement 205,940 205,940 - - 3 Complete Layne Park Revitalization Project 200,000 200,000 - - 4 Complete Council Chambers/AV Upgrade 24,981 24,981 - - 5 In Progress Upper Reservoir Project 850,000 778,612 71,388 - 6 In Progress Homeless Outreach Services 300,000 297,531 2,469 - 7 Complete Pioneer Park Project 255,235 255,235 - -
8 In Progress Downtown Master Plan 250,000 164,338 85,662 - 9 Complete Annual Street Repavement - Phase III 250,000 250,000 - - 10 In Progress Technology Improvements 179,845 54,356 125,490 - 11 In Progress Las Palmas & Rec Park Generator Project 150,000 113,452 36,548 1 12 In Progress City Mobile App - Virtual San Fernando 148,101 95,886 52,215 - 13 Complete Feasibility Study - New City Park Space 49,592 49,592 - - 14 In Progress Sidewalk Repairs 1,016,991 826,899 196,248 (6,156) 15 In Progress First Time Home Buyer & Rehab Loan Program Revolv 50,000 31,128 18,872 - 21 Complete Bus Shelter Project 114,939 114,491 448 -
16 In Progress Las Palmas HVAC Project 399,848 392,011 7,837 - 17 Complete Citywide Curb Repainting 200,000 200,000 - - 18 Complete City Hall Beautification 99,770 99,770 - -
19 Complete Park IT Server Room Transition 45,611 45,611 - - 20 Complete Wifi at LP & Recreation Park w/Computer Rooms 20,254 20,254 - - Total 5,818,339 $ 5,227,318 $ 597,177 $ (6,155)
NOTE:
ARPA Expenditure Plan & Status Report
All funds have been fully contracted by December 31, 2024, per ARPA guidelines. Staff will continue to report on expenditures through the December 31, 2026 deadline.
Variances will be presented for additional discussion during the 2026-2027 budget development review process.
June 15, 2026 Special & Regular CC Mtg Page 93 of 576
ATTACHMENT "C"
Contract
No.
Effective
Date
Expiration
Date
Company name
Description of Services
Contract
Amount
Dept.
2478 1/23/2026 6/2/2026 Los Angeles County RegistrarRecorder/County Clerk Check-In Center Plan June 2, 2026
Statewide Primary (City General) Election
at Lot 6N
$0.00 CLK
2512 5/21/2026 6/10/2026 Pacific Door Installation of new hollow metal door, frame, and hardware $5,200.00 PW
2371 6/18/2025 6/18/2026 Boyz in the Kitchen On-site Catering for Las Palmas Senior Club $24,900.00 RCS
2171 6/23/2023 6/23/2026 GOGov, Inc. Citizen Request Management (CRM) $10,080.00 ADM 2516 5/4/2026 6/24/2026 Funflicks of So. Cal Rental of LED Trailer for two world cup watch parties $8,975.00 RCS
2160 7/1/2022 6/30/2026 State of California Department of Parks and Recreation
Grant Contract to Receive Funds for the
Pacoima Boys & Girls Club $5,000,000.00 ADM
2057(b) 6/9/2023 6/30/2026 Joe Mar Polygraph &
Investigation Services, Inc.
Second Amendment for Polygraph
Services $2,500.00 PD
2168 6/20/2023 6/30/2026
San Gabriel Valley Council of
Governments and 19
Government Agencies
Administration and Cost Sharing for
Implementing Coordinated Integrated
Monitoring Program (CIMP) and
Watershed Management Program (WMP)
for Upper Los Angeles River Watershed
Management Area
- PW
2232 7/1/2023 6/30/2026
Los Angeles Gateway Region
Integrated Regional Water
Management Joint Powers
Authority (JPA)
Cost Sharing for the Installation of
Monitoring Equipment and Monitoring
Pursuant to the Harbor Toxic Pollutants
TMDL
FY 23-24: $586.24
FY 24-25: $588.78
FY 25-26: $602.60
PW
2185 8/22/2023 6/30/2026 Los Angeles Unified School
District (LAUSD)
Education Compact to collaborate to meet
educational needs of youth and families $0.00 ADM
2240 7/1/2024 6/30/2026 NetXperts, LLC Information Technology (IT) Managed Services
$149,700/yr w/ 3%
annual escalator FIN
2306 10/21/2024 6/30/2026
State of California, Department of
Housing and Community
Development (SCAG)
MOU No. M-028-25 for Regional Early
Action Planning Grants Program of 2021
(REAP 2.0)
$1,250,000.00 CD
2053(a) 10/23/2024 6/30/2026 Prudential Overall Supply First Amendment for Uniform supply for Public Works (Extending Term) $17,000.00 PW
2343 3/3/2025 6/30/2026 Rincon Consultants, Inc.
City of San Fernando Comprehensive
Housing Planning Program (SCAG REAP
2.0)
$1,125,000.00 CD
2238(b) 2/27/2025 6/30/2026 State of California Department of Parks and Recreation
Amendment No. 2 for Grant Contract for
San Fernando Family Hike and
Wildlife/Environment (Project Number HL19-015, Contract No C9781009) $26,486.00 RCS
2153(b) 4/10/2025 6/30/2026 JL Group, LLC Second Amendment for Investigation Services $90,000.00 PD
2221(a) 4/30/2025 6/30/2026 Community Bridge Housing Corp. Frist Amendment for Temporary Housing Services $25,000.00 CD
2365 6/2/2025 6/30/2026 Plansman Inc Design Services for the Downtown Trash Enclosure Renovation Project $60,000.00 PW
June 15, 2026 Special & Regular CC Mtg Page 94 of 576
2366(a) 6/10/2025 6/30/2026 Norman A. Traub and Associates First Amendment for Workplace Investigation Services $30,820.00 PD
2368 6/26/2025 6/30/2026 Canon Usa Laserfiche Software implementation and 12 month subscription $23,500.00 CLK
1903(c) 6/26/2025 6/30/2026 Omnigo Software Information Technologies, LLC
Third Amendment for Hosted services of
CAD, RMS, Mobile and Auto-tagging $30,837.60 PD
2394 7/1/2025 6/30/2026 Department of California Highway Patrol (CHP)
Grant Agreement for Cannabis Tax Fund
Grant Program funds to Support Selective
Traffic Enforcement Details
$189,866.43 PD
2398 6/30/2025 6/30/2026 Juan Perez Montelongo
(JP818Sports) Basketball Referee Services $13,000.00 RCS 2399 6/30/2025 6/30/2026 Juan L. Mora Baseball Consultant and Umpire Services $22,000.00 RCS 2400 6/30/2025 6/30/2026 Johnny Allen Tennis Academy Tennis Classes $4,000.00 RCS 2354(a) 7/16/2025 6/30/2026 A&M Catering First Amendment for On-site Catering for Las Palmas Senior Club $24,999.00 RCS
2407 7/1/2025 6/30/2026 Liebert Cassidy Whitmore Consortium for Special Services $4,525.00 HR 2415 8/8/2025 6/30/2026 Strategic Leadership Consultants SFPD Organizational Assessment $24,999.00 PD 2423 9/2/2025 6/30/2026 State of California - Department of Alcoholic Beverage Control Alcohol Policing Partnership Grant Funds $75,000.00 PD 2426 7/1/2025 6/30/2026 Able Mailing Mailing & Fulfillment Services $5,000.00 AS 2328(a) 9/2/2025 6/30/2026 The Language Pros First Amendment for Language Services up to $40,000/FY CLK 2428 9/15/2025 6/30/2026 Civiltec Engineering, Inc. Water Master Plan Development Services $208,155.00 PW 2429 9/2/2025 6/30/2026 Interwest a SAFEbuilt Company On-Call Public Works Services $25,000.00 PW 2430 8/11/2025 6/30/2026 Gracie Global, LLC Jiu Jitsu Arrest and Control Instructor Training $9,000.00 PD
2435 7/1/2025 6/30/2026 Historical Resources, Inc Historical Consultant for the Lopez Adobe $2,000.00 RCS 2436 7/1/2025 6/30/2026 Graciela Torres-Gahm Housekeeping Services of the Lopez Adobe $2,000.00 RCS
2437 7/1/2025 6/30/2026 Ninja Ninja Learns Martial Arts Instruction $5,500.00 RCS 2438 7/10/2025 6/30/2026 RTB Bus line Transportation for Day Camp Field Trips $8,000.00 RCS 2429(a) 10/6/2025 6/30/2026 Interwest a SAFEbuilt Company First Amendment to On-Call Public Works
Services (Include interim PW Director,
project management, and grant
management)
$325,000.00 PW
2440 6/27/2025 6/30/2026 Maria Berenice Barajas RCS Programming: Total Body Conditioning
70% of registration
revenue and/or $35
per hour
RCS
2441 6/27/2025 6/30/2026 Leilani Fainsan Ayson RCS Programming: Zumba & Inclusive Zumba
70% of registration
revenue and/or $25
per hour
RCS
2442 6/27/2025 6/30/2026 Violeta Quintero-Escamilla RCS Programming: Senior Music Class & Canto
$40/hr when 10+
participants; or 70%
registration revenue
RCS
2443 6/27/2025 6/30/2026 Francisco Javier Verdin RCS Programming: Folklorico Dance Class
70% of registration
fee and/or $30 per
hour
RCS
June 15, 2026 Special & Regular CC Mtg Page 95 of 576
2444 6/27/2025 6/30/2026 Paul John Gale RCS Programming: Shotokan Karate Classes
70% of registration
fee and/or $45 per
hour
RCS
2455 7/1/2025 6/30/2026 Joanne Fajardo Zumba Gold Classes $60/class & $60/event RCS
2456 7/1/2025 6/30/2026 Cynthia De Leon Mixed Line Dance Class 70% of registration
fee and/or
$30/event
RCS
2457 7/1/2025 6/30/2026 Angela Ahmu Zumba Gold Classes (Substitute) Classes $35/class RCS 2458 7/1/2025 6/30/2026 Bridget Laine Talley Yoga Class (Chair) Classes 70% of registration
fee and/or
$50/event
RCS
2459 7/1/2025 6/30/2026 Joanne Fajardo Chair Zumba Gold Classes 70% of registration
fee and/or
$60/event
RCS
2460 7/1/2025 6/30/2026 Angela Ahmu Stretching & Strengthening 70% of registration
fee and/or
$45/event
RCS
2461 12/1/2025 6/30/2026 Baker Tilly Strategic Plan Consulting Services $63,000.00 CMO 2464 8/1/2025 6/30/2026 GEC Events Special Event Production and Support Services $5,100.00 RCS
2485 1/23/2026 6/30/2026 Koff & Associates - A Division of Gallagher Benefit Services
Executive Recruitment Services for
Director of Public Works $25,000.00 HR
2425(b) 5/5/2026 6/30/2026 The Hiller Companies Annual Fire Inspection and Testing $7,000.00 PW 2453 12/1/2025 7/1/2026 SA Associates Preparation of 2025 Urban Water Management Plan $45,000.00 PW
2488 2/10/2026 7/1/2026 A1 DataPrint Solutions Inc.
On-Call Printer and Copier Repair
Services for Administrative Services
Department
$2,500.00 AS
2220 1/3/2024 7/3/2026 KnowBe4 KnowBe4 Security Awareness Training Subscription and Software $13,588.40 FIN
2502 3/17/2026 7/4/2026 Electric Sky Drone Shows, LLC 2026 Independence Day Drone Show $42,500.00 RCS 2175 7/5/2023 7/5/2026 US Department of Homeland
Security
SFPD Interoperable System and
Integrated Public Alet and Warning
System (IPAWS) Open Platform for
Emergency Networks
- PD
1920(c) 11/18/2024 7/15/2026 Envirogen Technologies, Inc.
Second Amendment for Repair of Nitrate
Removal Treatment Systems (Extending
term and increasing compensation)
$200,000 annually PW
2401 7/16/2025 7/16/2026 Department of Resources
Recycling and Recovery
Participate in the Used Oil Payment
Program Cycle 16 (OPP16) Fiscal Year
2025–26
NA PW
2253 7/28/2021 7/28/2026 Bartel Associates Actuarial Services $24,500.00 FIN 2253(a) 6/11/2024 7/28/2026
Foster & Foster Consulting
Actuaries, Inc. formerly Bartel
Associates, LLC
First Amendment for Actuarial Services
(Business Name Change) $24,500.00 FIN
June 15, 2026 Special & Regular CC Mtg Page 96 of 576
2268 7/15/2024 7/31/2026 Dixon Resources Unlimited Resdential Parking Program Implementation Services $84,735.00 PW
2396(a) 8/1/2025 7/31/2026 Veoci Amendment No. 1 for EOC Communication & Operations $5,701.00 PD
2408 8/4/2025 8/4/2026 UCLA Head Start
Provide individualized support in school
readiness, health, resources, and quality
services for infant, toddlers, pregnant
women, and their families
$0.00 RCS
2413 8/4/2025 8/4/2026 My Valley Pass City Marketing Campaign $25,000.00 CMO 2281 8/5/2024 8/5/2026 Enterprise Fleet Management
Lease of 2024 Chrysler Voyager LX
Passenger Van, taxes, titles, registration,
destination charges, outfitting to support
implementation of SAHMSA grant
$51,287.95 PW
2507 5/5/2026 8/5/2026 Clean Energy Assessment of Repairs at CNG Station $12,000.00 PW 2514 4/20/2026 8/22/2026 Stone Soul Summer Concert Series Entertainment $2,500.00 RCS 2287(a) 9/1/2025 9/1/2026 Habitat for Humanity of Greater Los Angeles (Habitat LA)
First Amendment to Administer a Home
Rehabilitation Program $50,000 per yr CMO
1997 9/20/2021 9/30/2026 Utility Systems Science and
Software, Inc.
Professional Services Agreement for
Sewer Overflow Monitoring Services $46,200.00 PW
2433 10/6/2025 9/30/2026 California Office of Traffic Safety (OTS)
Selective Traffic Enforcement Program
(STEP) Grant funds $60,000.00 PD
2473 1/5/2026 9/30/2026
University Corporation at
California State University,
Northridge (CSUN)
Provide Volunteer Income Tax Assistance
(VITA) services and Financial Literacy
Workshops
$0.00 RCS
2434 10/6/2025 10/6/2026 Asociación de Jaliscienses
Unidos en Acción (AJUA) Provide Mexican Consular Services $0.00 CMO 2476 4/6/2026 10/6/2026 Ignite the Light of Hope
Foundation Food Distributions $0.00 CMO
2206 10/16/2023 10/16/2026 Paymentus Corporation Master Services Agreement for electronic/ online Payment Services Transaction Fee FIN
2206(a) 9/19/2024 10/16/2026 Paymentus Corporation
Amendment No. 1 to Master Services
Agreement for electronic/ online Payment
Services (Increasing scope of work)
Transaction Fee FIN
2302(a) 10/7/2025 10/18/2026 I Ramirez Corp
First Amendment to On-Call Street and
Sidewalk Repair Services for Water
Division
$4,800 no more
than $24,999/yr PW
2299(a) 11/17/2025 10/21/2026 North Valley Caring Services First Amendment to Provide Comprehensive Homeless Services $279.80 CMO
2300(b) 11/17/2025 10/21/2026 Home Again LA
Second Amendment to Provide
Comprehensive Homeless Services and
Financial Assistance Program
$298,184.00 CMO
June 15, 2026 Special & Regular CC Mtg Page 97 of 576
2122 10/23/2022 10/23/2026 BKK Working Group
Second Tolling Agreement - Successor
Agreement to 2019 Agreement that tolled
any Applicable Statute of Limitations
governing Claims that could Assert against
City or vice versa
- ADM
2301 10/7/2024 10/31/2026 Acorn Technology Services Provide Information Technology Managed Services
Initial: $428,200
1st ext: $260,405
2nd Ext: $278, 102
3rd Ext: $268,971
FIN
2301(a) 10/6/2025 10/31/2026 Acorn Technology Services
First Amendment to Provide Information
Technology Managed Services (Expanding
Scope of Work to Include M365 Migration)
Initial: $428,200
1st ext: $260,405
2nd Ext: $278, 102
3rd Ext: $268,971
FIN
2448 11/1/2025 11/1/2026 CoStar License for Real Estate Data Website $500.00 CD 2494 3/18/2026 11/9/2026
Los Angeles County RegistrarRecorder/County Clerk
(Elections)
Vote Center Facility Use Agreement for
Recreation Park, Multi-Purpose Room for
June 2, 2026 Election
$0.00 CLK
2495 3/18/2026 11/9/2026
Los Angeles County RegistrarRecorder/County Clerk
(Elections)
Vote Center Election Plan for Recreation
Mark, Multi-Purpose Room for June 2,
2026 Election
$0.00 CLK
2496 3/18/2026 11/9/2026
Los Angeles County RegistrarRecorder/County Clerk
(Elections)
Vote Center Facility Use Agreement for
Las Palmas Park, Arts and Crafts Room
for June 2, 2026 Election
$0.00 CLK
2497 3/18/2026 11/9/2026
Los Angeles County RegistrarRecorder/County Clerk
(Elections)
Vote Center Election Plan for Las Palmas
Park, Arts and Crafts Room for June 2,
2026 Election
$0.00 CLK
2038(a) 11/19/2024 11/19/2026 Michael Baker International First Amendment for CDBG Program
Implementation and Administration
Services (Utilizing (2) one-yr extensions
$60,895.00 ED
2214 11/28/2023 11/30/2026 Susan Saxe-Clifford and
Associates
Psychological and Fitness for Duty
Evaluations for Police Officer applicants,
current staff, and Concealed Carry
Weapon (CCW) license evaluations for
CCW applicants.
$35,000.00 PD
2205(b) 12/5/2025 12/5/2026
Initiating Change in Our
Neighborhoods Community
Development Corporation (ICON
CDC)
Second Amendment to MOU to Provide
Free Services to entrepreneur and Small
Business Owner in the City
$0.00 CMO
2046(b) 12/1/2025 12/6/2026 GMU Pavement Engineering
Services
Second Amendment to Pavement Design
Services $450,000 annually PW
2044(c) 1/14/2026 12/6/2026 CWE Third Amendment to Water and Wastewater Engineering Services $1,000,000.00 PW
1875(b) 1/1/2024 12/31/2026
Los Angeles Department of
Water and Power, Crescenta
Valley Water District, Cities of
Glendale, Burbank, and San
Fernando
Amendment No. 2 to the Cost Sharing
Agreement Regarding the Allocation of
Costs of Watermaster Services and
Watermaster's Legal Services for the
Upper Los Angeles River Area
Groundwater Basins (ULARA)
- ADM
2286 9/3/2024 12/31/2026 TreePeople
Project Management, Grant
Administration, Community Engagement,
and Landscape Planting for Carlisle Green
Alley Project, CNRA - UG2106-0, Job No.
7628, Plan No. P-745
$270,020.00 PW
2309 10/21/2024 12/31/2026 Precision Concrete Cutting
Sidewalk Assessment, Repair and
Maintenance Services (Cooperative
Purchase: Keystone Purchasing Network
Contract No. KPN-202201-04)
$1,006,900.00 PW
June 15, 2026 Special & Regular CC Mtg Page 98 of 576
2041(a) 11/18/2024 12/31/2026 Bear Communications, Inc. dba BearCom
First Amendment to City-Wide Radio
System and Wireless broadband Video
Network Maintenance Services, and
Installation and Maintenance of Security
Camera System and Access Control
System (Extending Scope of Work and
increasin compensation)
$910,062.00 PD
2107(b) 11/5/2025 12/31/2026 RJM Design Group Second Amendment for Design of Las Palmas Park Revitalization Project $490,121.00 RCS
2147(d) 12/24/2025 12/31/2026 Dudek Fourth Amendment for Downtown Master Plan $297,675.00 CD
2424(a) 3/25/2026 12/31/2026 Civiltec Engineering, Inc. First Amendment for Engineering Services for Well 2A Nitrate Treatment System $435,148.50 PW
June 15, 2026 Special & Regular CC Mtg Page 99 of 576
ATTACHMENT “D”
CITY MANAGER’S OFFICE 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1202 WWW.SANFERNANDO.GOV To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Will Pettener, Assistant to the City Manager
Date: June 15, 2026
Subject: Summary of 2026 Legislative Advocacy & Funding Request Letters Legislative Activity
Below are legislative advocacy letters submitted in accordance with the City’s Legislative Advocacy Policy and Platform (January 1, 2026 – Present):
1. Oppose LA County Motion (Mitchell) re: General Sales Tax Increase to Offset Healthcare Funding Shortfall (2/4)
Additionally, the City has submitted letters of support for funding requests and initiatives for the following community-based organizations and legislators (January 1, 2026 – Present):
1. Habitat LA – Commemorative Letter for the Los Angeles Builders Ball (2/10)
2. Congresswoman Rivas, Senator’s Schiff and Padilla – In Support of Pacoima Wash Greenway Segment 1b Project (2/18)
3. Congresswoman Rivas - In Support of San Fernando Community Health Community Project Funding Request (3/4)
4. Congresswoman Rivas - In Support of Northeast Valley Health Corporation Community Project Funding Request (3/4)
5. Congresswoman Rivas, Senator’s Schiff and Padilla – In Support of FTBMI’s Federal Appropriations Requests (3/11)
6. Senator’s Schiff and Padilla - In Support of Northeast Valley Health Corporation Community Project Funding Request (3/11)
7. Substance Abuse and Mental Health Services Administration (SAMSHA) - El Centro de Amistad Zero Suicide Grant (4/11)
8. Letter to Safe Clean Water LA - In Support of Pacoima Wash Greenway Segment 1b Project (6/9)
June 15, 2026 Special & Regular CC Mtg Page 100 of 576
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AGENDA REPORT
COMMUNITY DEVELOPMENT DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1227 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: Receive and File the General Plan Housing Element Annual Progress Report for Calendar Year 2025
RECOMMENDATION:
It is recommended that the City Council receive and file the General Plan Housing Element Annual Progress Report for Calendar Year 2025 (Attachment “A”).
BACKGROUND:
1. Since 1969, the State has required all cities and counties in California to adopt a Housing Element to adequately plan to accommodate each jurisdiction’s fair share of housing needs in California. The Housing Element is a chapter of the General Plan that serves as each jurisdiction’s blueprint for how it plans to grow and develop during a particular “planning cycle”.
2. On June 6, 2022, the City Council adopted the 2021-2029 (6th Cycle) Housing Element that established the City's strategy for achieving the mandated Regional Housing Needs Assessment (RHNA) allocation for the 2021-2029 6th planning cycle.
3. On August 9, 2022, the California Department of Housing and Community Development (HCD) certified the City’s 2021-2029 Housing Element as being in full compliance with State housing law.
4. On April 21, 2025, the fourth annual report of the current cycle was received and filed by the City Council for the 2024 calendar year.
5. On April 13, 2026, the fifth annual report of the current cycle was presented to the Planning and Preservation Commission.
June 15, 2026 Special & Regular CC Mtg Page 103 of 576
Receive and File the General Plan Housing Element Annual Progress Report for Calendar Year 2025
ANALYSIS:
California Government Code Section 65400 mandates that each City and County planning agency prepare an annual report on the status and progress in implementation of their Housing Element.
The Housing Element Annual Progress Report (APR) is submitted to HCD by April 1st of each year for the prior calendar year. The primary purpose of the Housing Element APR is to provide a tabulation of the City’s progress towards the eight-year RHNA allocation.
HCD provides a standard template that cities complete to fulfill statutory requirements for reporting on housing information, including housing production and affordability, implementation of Housing Element programs, and local efforts to remove governmental constraints to the development of housing.
The 2025 Housing Element APR (Attachment “A”) shows the number of new housing units and at which affordability levels were developed during the reporting year. The method for determining affordability included conducting research on available rental units in San Fernando and adjacent areas, calculating average rent prices based on square footage and bedroom count and applying the Housing Affordability Calculator provided by HCD1. The housing units are tracked by calculating the number of development applications submitted, project entitlements approved, building permits issued, and building permits that received Certificate of Occupancy approval.
The APR also includes status updates on the City’s progress in meeting the objectives for each of the numerous programs noted in the Housing Element.
In 2025, the City completed 23 planning entitlements applications for new housing units, issued 42 building permits, and issued 21 Certificate of Occupancy permits for new housing units. Table 1 below shows a breakdown of the units and their affordability levels. Note that all units referenced in Table 1 are Non-Deed Restricted.
Status of Housing units are broken down into the three (3) types described below.
1. Entitlement Issued – This is commonly known as receiving planning approval, which means a proposed development project has completed the planning review or entitlement process.
The entitlement process is the legal process in which development applications are processed through the Planning Division to ensure the proposed development complies with zoning regulations, land use plans, the California Environmental Quality Act (CEQA), and other applicable State and local laws and regulations. This is step one (1) in the development process.
1 Available rental units and rent prices were obtained from https://www.zillow.com/ and https://www.redfin.com/ HCD Housing Affordability Calculator https://www.hcd.ca.gov/sites/default/files/docs/planning-andcommunity/affordability-calculator.xlsm June 15, 2026 Special & Regular CC Mtg Page 104 of 576
Receive and File the General Plan Housing Element Annual Progress Report for Calendar Year 2025
2. Building Permits Issued - The issuance of building permits sets the construction phase of a project into motion. Once a development project is “entitled”; meaning has gone through the process described above, construction plans are submitted to the Building Division for review of the plans to ensure the proposed construction complies with building, electrical, mechanical, plumbing, American with Disabilities Act (ADA), solar and other such codes, laws and regulations. This plan review process is commonly known as Plan Check. Once the construction plans are approved, permits can be issued to allow the construction work to begin.
3. Certificate of Occupancy Issued - A Certificate of Occupancy is issued by the Building Official when a building has completed being fully constructed, inspected and deemed safe to be occupied.
Below is a Summary of Planning Entitlements, Building Permits, and Certificates of Occupancy for 2025.
Table 1: Summary Entitlements, Permits, Occupancies
Entitlement Issued by Affordability 2025
Income Level Unit Count
Very Low 0
Low 13
Moderate 8
Above Moderate 2
Total Units 23
Building Permits Issued by Affordability 2025
Income Level Unit Count
Very Low 0
Low 21
Moderate 16
Above Moderate 5
Total Units 42
Certificate of Occupancy Issued by Affordability 2025
Income Level Unit Count
Very Low 0
Low 9
Moderate 9
Above Moderate 3
Total Units 21
June 15, 2026 Special & Regular CC Mtg Page 105 of 576
Receive and File the General Plan Housing Element Annual Progress Report for Calendar Year 2025
Reporting progress toward achieving the state’s RHNA allocation for San Fernando is a key component of the Housing Element APR submitted to HCD. The RHNA establishes exactly how many new homes, and at what affordability levels, a jurisdiction is required to plan for within an eight-year planning cycle to address regional and State housing needs. Through the RHNA allocation, each jurisdiction is assigned its “fair share” of housing projection at specified affordability levels. This fair share results from the Southern California Associations of Governments (SCAG) three-decade projection of population, household, and employment growth at the region, county, jurisdiction, and transportation analysis zone levels which they conduct every four years. Unlike a short-term projection, which depends heavily on economic cycles, long-term regional growth is driven by births, deaths, migration, and the composition of the region’s industries relative to the rest of the country.
The 2025 APR for San Fernando, and all jurisdictions within the SCAG region (inclusive of the counties of Los Angeles, Orange, Imperial, San Bernardino, Ventura, and Riverside), falls within the 6th RHNA cycle extending from 2021 through calendar year 2029.
As presented in Table 1 above, 42 net new housing units were issued building permits in 2025.
These units count toward the City’s 1,795 total allocation for the 6th planning cycle.
Table 2: Regional Housing Needs Allocation (RHNA) Progress: 2021-2029.
Income
Level
2022-2029
RHNA
Allocation
Building Permits Issued per Year Total
Units
to
Date
Remaining
RHNA
Target
2021 2022 2023 2024 2025 2026 2027 2028 2029
Extremely
Low
230 - - - - - - - - - - -
Very Low 231 - 3 3 - - - - - - 6 455
Low 273 10 22 27 29 21 - - - 124 149
Moderate 284 - 13 15 - 16 - - - - 44 240
Above
Moderate
777 2 11 4 27 5 - - - - 52 725
Total 1,795 12 49 49 56 42 - - - - 226 1,569
In addition, to processing housing developments, the City is also required to make progress in all goals, policies and programs set forth in the certified Housing Element. Thus far, completed programs include:
• Tracking of developments on smaller parcelsto encourage lot consolidation and construction of 35 dwelling units per acre; tracking occurs with submittal of proposed developments.
June 15, 2026 Special & Regular CC Mtg Page 106 of 576
Receive and File the General Plan Housing Element Annual Progress Report for Calendar Year 2025
• Continued provision of Lead Based Paint Awareness and abatement brochures to building permit applicants.
• Section 8 Awareness, Fair Housing information, Bilingual Homeownership Program resources flyers on the website, City Hall, and other public locations. • Continued processing of Junior Accessory Dwelling Units. • December 2017, adoption of the San Fernando Corridors Specific Plan (SP-5). • February 6, 2023, adoption of urban lot split and 2-unit ordinance for R-1 zones. • Acting on new provisions resulting from the June 15, 2026 adoption of the Housing Implementation Plan program effecting the Zoning Code, Subdivision Code, Specific Plan-5, Objective Design Standards, Zoning Map, and General Plan Land Use Element.
The Housing Element Annual Report describes the progress of the City’s ongoing efforts to implement and assess identified goals, policies and objectives in the Housing Element.
Demonstration of ongoing compliance with State-required reporting ensures that the City maintains eligibility and competitiveness for grant funding opportunities that may help to implement these goals and policies.
Environmental Review.
The proposed General Plan Housing Element Annual Progress Report for Calendar Year 2025 is not considered a project as prescribed by CEQA; therefore, no further CEQA action is required.
BUDGET IMPACT:
There is no fiscal impact associated with the preparation and update to the City Council of the General Plan Housing Element Annual Progress Report.
CONCLUSION:
Staff recommends that the City Council receive and file the General Plan Housing Element Annual Progress Report for Calendar Year 2025.
ATTACHMENT:
A. General Plan Housing Element Annual Progress Report for Calendar Year 2025 June 15, 2026 Special & Regular CC Mtg Page 107 of 576
Jurisidiction Name
Reporting Calendar YearFirst NameLast NameTitle Click here to download APR InstructionsEmailPhoneStreet AddressCityZipcode v_02_19_26
Please Start Here
General Information
2025
San Fernando
Contact Information
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You will be prompted to pick an old workbook to import from. Project and program data will be copied exactly how it was entered in last year's form and must be updated. If a project is no longer has any reportable activity, you may delete the project by selecting a cell in the row and typing ctrl + d.Click here to add rows to a table. If you add too many rows, you may select a cell in the row you wish to remove and type ctrl + d. 117 N. Macneil Street
San Fernando
91340
Jose
Mendivil
Planning Manager
[email protected]
8188981217
Mailing Address
Annual Progress Report January 2020
ATTACHMENT "A"
June 15, 2026 Special & Regular CC Mtg
Jurisdiction San Fernando
Reporting Year 2025
Housing Element Planning Period 6th Cycle
Current Year
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 21
Deed
Restricted 0
Non-Deed
Restricted 16
5 42
Units by Structure Type Entitled Permitted Completed
Single-family Attached 11 0
Single-family Detached 33 0
2 to 4 units per structure 00 0
5+ units per structure 00 0
Accessory Dwelling Unit 19 38 21
Mobile/Manufactured Home 0 0 0
Total 23 42 21
Infill Housing Developments and Infill Units Permitted # of Projects Units 40 42
00 54
88 87
0 0
0 Income Rental Ownership Total
Acutely Low 00 0
Extremely Low 00 0
Very Low 00 0
Low 00 0
Moderate 00 0
Above Moderate 00 0
Total 00 0
Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 00
SB 9 (2021) - Residential Lot Split 44
AB 2011 (2022) 00
SB 6 (2022) 00
SMAP 00
Ministerial and Discretionary Applications # of Units
Ministerial 54 88
Discretionary 00
Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 1 Number of Units in Applications Submitted Requesting a Density Bonus 27 Number of Projects Permitted with a Density Bonus 0
Number of Units in Projects Permitted with a Density Bonus 0 Housing Element Programs Implemented and Sites Rezoned Count 11 0
Total Housing Applications Submitted:
Number of Proposed Units in All Applications Received:
Total Housing Units Approved:
Total Housing Units Disapproved:
Total Units
Housing Applications Summary
Use of Streamlined Ministerial Approval Process or SMAP (formerly SB 35 / 423) - Applications Number of SMAP Applications
Above Moderate
Indicated as Infill
Not Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level
Programs Implemented
Sites Rezoned to Accommodate the RHNA
(Jan. 1 - Dec. 31)
10/15/2021 - 10/15/2029
Units Constructed - SMAP (formerly SB 35 / 423) - Permits Number of SMAP Applications Approved
Very Low
Low
Moderate
Acutely Low
Extremely Low
June 15, 2026 Special & Regular CC Mtg Page 109 of 576
Jurisdiction San Fernando ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 1 Projection
Period 34
RHNA Allocation
by Income Level
Projection
Period -
06/30/2021-
10/14/2021
2021 2022 2023 2024 2025 2026 2027 2028 2029
Total Units to
Date (all
years)
Total Remaining
RHNA by
Income Level
Deed Restricted - - - - - - - - - - Non-Deed Restricted - - - - - - - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted - - - - - - - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted - - 3 3 - - - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted 15 10 22 27 29 21 - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted - - 13 15 - 16 - - - - Above Moderate 777 3 2 11 4 27 5 - - - - 52 725
1,795
18 12 49 49 56 42 - - - - 226 1,569
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected] Low - - *For years prior to 2025, data on deed-restricted vs. non-deed restricted Extremely Low-Income units is approximated from whether the projects reported any deed-restricted Very Low-Income Units. If you wish to edit this historical data for accuracy or have any questions about the data, you may login to HCD's online APR system, or contact HCD staff at [email protected] Units*For jurisdictions that received RHNA determinations for the current cycle prior to the passage of AB 3093 (September 19, 2024):- You were not allocated Acutely Low-Income and Extremely Low-Income RHNA targets, therefore the allocations in Field 1 are listed as "0" - If you wish to set your own targets in these income categories for informational purposes, contact HCD staff at [email protected] All Acutely Low-Income and Extremely Low-Income units reported during the cycle are counted towards Very-Low Income RHNA progress 240
Total RHNA
-
149 Low
*For years prior to 2025, Acutely Low-Income units are reported within the Extremely Low-Income categoryPlease Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.Extremely Low - 44 Moderate
461 273 284
124 6
Income Level
Very Low
- -
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.
Please contact HCD if your data is different than the material supplied here 2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
455
June 15, 2026 Special & Regular CC Mtg
Jurisdiction San Fernando
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 345 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program Implementation Program Implementation Details Quantified Outcomes: Category Quantified Outcomes: Count Supporting Documents Residential Rehabilitation Loan Program
Assist 20 households during the planning period, subject to available funding. 12/31/2029 6th Cycle In Progress The City is in the process of re-establishing the Rehabilitation Loan Program. In October 2025, the City received a conditional award notice for the 2024 Homeownership Super NOFA (HOSN), CalHome, Round 2, in the amount of $5,000,000. The grant agreement is currently under review by the California Department of Housign and Community Development.
Households 0 None
Lead Based Paint Awareness
Remediate lead cases. Coordinate with LA County and Pacoima Beautiful on educational programs and identification of funding sources. 12/31/2029 6th Cycle Continuous City continues to provide brochures to prospective building permit applicants in compliance with applicable lead based paint abatement procedures. Households 54 None Facilitate Affordable and Special Needs Housing Development Coordinate with affordable housing developers, offer regulatory concessions and incentives, and identify new funding sources to facilitate production of new affordable and special needs housing units. 12/31/2029 6th Cycle Continuous No additional deed restricted affordable housing was built in 2025. However, a total of 28 accessory dwelling units were issued planning approval. Households 0 None Conservation of Existing and Future Affordable Units
Monitor the status of the existing and future affordable rental stock in San Fernando. Work with property owners, interest groups, and the State and Federal governments to conserve its affordable housing stock. 12/31/2029 6th Cycle Continuous City continues to monitor existing deed restricted affordable units on an annual basis. Households 0 None Removal of Governmental Constraints
Monitor changes in State and Federal laws and revised City policies, programs and regulations as necessary and appropriate. 12/31/2024 6th Cycle In Progress
City is in the processing of adopting new zoning regulations ensuring compliance with State mandated housing requirements including, but not limited to: provisions for accessory dwelling units, reasonable accommodation requests, density bonus provisions, supportive and transitional housing provisions, and accommodation of emergency shelters. The City continues to update these regulations in order to streamline the approval process. This effort is being funded by SCAG and will be completed on June 30, 2025 Other 90 https://www.sanfernando.gov/Business-Support/Planning-and-Zoning/General- Plan-Elements-and-Updates Community Development Department Expansion
Hire a Housing Coordinator to help reestablish the multifamily rental inspection, homeowner rehabilitation, and first time homebuyer programs. 12/31/2029 6th Cycle Completed City has hired and Housing Coordinator and continues to post open positions, and conduct interviews to expand the department. Persons 100 none Section 8 Rental Subsidies
Coordinate with LA County Community Development Commission to expand the program. 12/31/2023 6th Cycle Completed
City provides links on its website, City Hall, and other public locations. The City continues to work with LA County Community Development Commission through a coorpertive agreement.
Persons 100 https://www.sanfernando.gov/Housing-Social-Services/Housing-Programs Fair Housing
Contract with the FHCSFV, or another fair housing provider; disseminate brochures; coordinate fair housing education with community events. 12/31/2029 6th Cycle Continuous
City provides links on its website and a list of housing resources at the public counter to property owners and renters, including a brochure for the Housing Rights Center with offices in San Fernando Valley.
Persons 100 https://www.sanfernando.gov/Housing-Social-Services/Housing-Programs Affirmatively Futhering Fair Housing
Promote housing along with supportive services to meet the special housing needs of seniors,homeless individuals, and families, and the disabled. 12/31/2029 6th Cycle Continuous City continues to provide brochures and links on its website, City Hall, and other public locations. Persons 100 https://www.sanfernando.gov/Housing-Social-Services/Housing-Programs
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
Table D
Program Implementation Status pursuant to GC Section 65583 June 15, 2026 Special & Regular CC Mtg
Homeownership Program Promote MCC,HOP, and SCHFA programs to expand homeownership. 12/31/2029 6th Cycle Continuous City has prepared and distributed a bi-lingual program flyer and updated the City's social media channels with regularly updated resource information. Persons 100 https://www.sanfernando.gov/Housing-Social-Services/Housing-Programs Adequate Housing Opportunity Sites for RHNA
Prepare and approve the required General Plan Amendments, Zoning Changes, and update theCorridors Specific Plan to allow for the development of mixed-use and/or residential developments toaccommodate the City’s 2021-2029 RHNA. In addition, establish and implement the Mixed-Use Overlay district. 10/15/2022 6th Cycle Completed
City adopted the Mixed Use Overlay zone on February 11, 2025 and continues to meet with landowners to facilitate redevelopment on vacant parcels and severely underutilized parcels within the Housing Opportunity Areas. To further encourage development, the City will evaluate the feasibility of providing landowners and developers a menu of incentives including streamlined/expedited processing, density bonus incentives, flexible development standards as indicated in the Housing Plan.
Other 100 https://www.sanfernando.gov/files/assets/public/v/1/government/documents/co mmunity-development/zoning-map-update_public-review-draft.pdf June 15, 2026 Special & Regular CC Mtg
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AGENDA REPORT
REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Erica D. Melton, Director of Administrative Services
Date: June 15, 2026
Subject: Consideration to Adopt a Resolution Setting the Fiscal Year 2026-2027 Article XIIIB Appropriations (Gann) Limit
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 8460 (Attachment “A”) setting the Fiscal Year (FY) 2026-2027 Article XIIIB Appropriation Limit at $85,753,733.
BACKGROUND:
1. Since Fiscal Year 1980 – 1981, the City has annually adopted a Gann limit in response to the 1979, California voters approved Proposition 4, known as the Gann Initiative. This initiative added Article XIIIB to the State Constitution and established annual spending limits for state and local governments based on 1978–79 revenue levels. While its impact was initially limited, the measure gained significance in 1987 when the State exceeded its limit and refunded $1.1 billion to taxpayers, and it later constrained efforts to increase gas taxes in the late 1980s.
2. In June 1990, to increase accountability of local governments in adopting their limits, the State voters approved Proposition 111, which amended Article XIIIB (Proposition 4) by requiring local jurisdictions to establish an annual review of the Appropriation Limit calculation.
3. On June 16, 2025, the City Council adopted Resolution No. 8387, setting the FY 2025-2026 Article XIIIB Appropriation Limit at $80,031,482.
ANALYSIS:
Appropriation Limits cap how much proceeds of taxes a city can use each fiscal year. Proceeds of taxes include all taxes levied by or for an agency, any revenues from license fees, general use charges and user fees to the extent that the proceeds exceed the cost of providing the service ADMINISTRATIVE SERVICES DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1200 WWW.SANFERNANDO.GOV June 15, 2026 Special & Regular CC Mtg Page 115 of 576
Consideration to Adopt a Resolution Setting the Fiscal Year 2026-2027 Article XIIIB Appropriations (Gann) Limit
covered by the fee, and discretionary State support. The limit can be increased from the prior year based on inflation, population changes, or past calculation corrections.
Cities apply two (2) adjustment factors when calculating the Gann Limit: an inflation factor (Per Capita Personal Income Change or Non-Residential Assessed Value Change) and a population factor (City Population Change or Los Angeles County Population Change).
The components used for the FY 2026-2027 Gann Limit calculation, as noted in Exhibit “1” of Attachment “A”, are the increase in the Non-Residential Assessed Value Change of +7.36% and the City Population Change of -0.20%. The use of the two (2) above-mentioned adjustment factors results in an increase in the Appropriation Limit of 7.10% from the prior year Appropriation Limit of $80,031,482 to $85,753,733 for FY 2026-2027.
Per State law, a full appropriations analysis is required only if the proposed budget of allowable funds exceeds the calculated limit. For FY 2026-2027, the combined General Fund and Special Revenue Funds proposed budget of $40,919,967 is below the limit of $85,753,733, so no additional analysis is needed.
Approving the Resolution will set the FY 2026-2027 Article XIIIB Appropriation Limit at $85,753,733.
BUDGET IMPACT:
The total FY 2026-2027 revenues subject to the Appropriation Limit are well below the Appropriation Limit of $85,753,733. Therefore, there is no impact to the FY 2026-2027 Budget.
CONCLUSION:
It is recommended that the City Council adopt Resolution No. 8460 (Attachment “A”) setting the Fiscal Year (FY) 2026-2027 Article XIIIB Appropriation Limit at $85,753,733.
ATTACHMENT:
A. Resolution No. 8460, including:
Exhibit “1”: FY 2026-2027 Gann Limit calculation
June 15, 2026 Special & Regular CC Mtg Page 116 of 576
ATTACHMENT “A”
RESOLUTION NO. 8460
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO,
CALIFORNIA, FIXING THE APPROPRIATION (GANN) LIMITATION IN THE CITY OF SAN FERNANDO FOR THE FISCAL YEAR 2026-2027
THE CITY COUNCIL OF THE CITY OF SAN FERNANDO DOES HEREBY RESOLVE, FIND, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. In accordance with Article XIIIB of the California Constitution as amended by Proposition 111 and the Gann Implementation Bill 1352, the Appropriation Limit (Exhibit “1”) in the City of San Fernando for Fiscal Year 2026-2027 is hereby fixed at eighty-five million, seven hundred fifty-three thousand, and seven hundred thirty-three dollars ($85,753,733).
SECTION 2. This Resolution shall take effect immediately upon its adoption.
SECTION 3. 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 117 of 576
RES. NO. 8460
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. 8460 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 118 of 576
RES. NO. 8460
EXHIBIT "1"
FY 2025-2026 Adopted Appropriation Limit $ 80,031,482
A. Inflation Adjustment Factor*
Per Capita Personal Income Change** 4.95
Ratio 1.0495
Non-Residential Assessed Value Change*** 7.36
Ratio 1.0736
B. Population Adjustment Factor*
City Population Change** (0.20)
Ratio 0.9980
Los Angeles County Population Change** (0.64)
Ratio 0.9936
C. Calculation of Appropriations Limit:
Step 1:
Non-Residential Assessed Value Change 1.0736
City Population Change Ratio X 0.998
Appropriations Limit Factor 1.0715
Step 2:
FY 2025-2026 Appropriations Limit $ 80,031,482
Appropriations Limit Factor X 1.0715
FY 2026-2027 Appropriation Limit $ 85,753,733
NOTES:
* The City may choose to use the higher of the two Inflation Adjustment Factors and the greater of the two Population Adjustment Factors to calculate the Appropriation Limit. **Information provided by the California State Department of Finance ***Information provided by HdL (City Consultant)
Article XIIIB Appropriations (GANN) Limit
Fiscal Year 2026-2027
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AGENDA REPORT
PUBLIC WORKS DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-7307 WWW.SANFERNANDO.ORG 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
Victor Meza, Water Operations Manager
Date: June 15 , 2026
Subject: Receive and File Status Update on Well No. 2A Nitrate Treatment Plant Expansion Project, Project No. 7630
RECOMMENDATION:
It is recommended that the City Council receive and file the status report for the Well No. 2A Nitrate Treatment Plant Expansion Project, Project No. 7630.
BACKGROUND:
1. On May 22, 2025, staff identified a critical mechanical failure at Well No. 2A, rendering it inoperable.
2. On June 2, 2025 , the City Manager authorized urgency procurement and repair Well No. 2A.
This action enabled General Pump to mobilize for immediate repair.
3. On September 2, 2025, the City Council awarded Contract No. 2424 to Civiltec Engineering, Inc. for Professional Engineering Design Services for a new Well 2A Nitrate Treatment Plant Expansion System and approved Contract No. 1920(d) to Envirogen Technologies, Inc. for a proprietary Ion Exchange Nitrate Removal Treatment System for Well No. 2A Nitrate Treatment Plant Expansion System.
4. On September 3, 2025, a Notice to Proceed issued to both Civiltec Engineering, Inc. and Envirogen Technologies for the professional engineering design services and the purchase of a proprietary Ion Exchange Nitrate Removal Treatment System at Well No. 2A.
5. On October 27, 2025, the City received approval from the State Water Resources Control Board, Division of Drinking Water, to return Well 2 to service following the completion of rehabilitation work performed by General Pump.
June 15, 2026 Special & Regular CC Mtg Page 123 of 576
Receive and File Status Update on Well No. 2A Nitrate Treatment Plant Expansion Project, Project No. 7630
6. On December10, 2025 the City received an extension to the state grant awarded by the State Water Resources Control Board (SWRCB) through the Drinking Water State Revolving Fund (DWSRF) Program, Grant Agreement No. D2202021. The new deadline date is June 30, 2028.
ANALYSIS:
Maintaining and upgrading the City’s water wells is essential to ensuring a safe, reliable, and sustainable water supply for the community. As the City relies heavily on local groundwater to meet residential, commercial, and emergency needs, investing in the upkeep of City wells protects public health, safeguards against system failures, and reduces dependence on costly imported water from Metropolitan Water District (MWD).
The City relies heavily on its four (4) active wells, Well 2A, Well 3, Well 4A, and Well 7A, which collectively meet system demand and currently keep nitrate levels within drinking water standards. Of these, Well 2A is the most critical, producing over 2,000 gpm (gallons per minute) and serving as a cornerstone of the City’s water supply. The table below shows the City’s wells and production:
Groundwater Sources
Source Status Capacity (GPM)
Well 2A Active 2,030 gpm
Well 3 Active 1,100 gpm
Well4A Active 400 gpm
Well 7A Active 900 gpm
Well No. 2A, located at 14060 Sayre Street, Sylmar, CA (Attachment “A”), is the City's highest-capacity well, capable of producing approximately 2,030 gpm, enough to meet the City's full daily water demand on its own (approximately 2030 GPM during normal climate conditionsWhile peak operations conditions during hot months daily demand require 3000 GPM). Current nitrate levels are 9.4 mg/L, just below the State Maximum Contaminant Level (MCL) of 10 mg/L.
If the MCL is reached, the well must be shut down and the City would need to purchase significantly more expensive imported water from MWD.
Restoring Well No. 2A to full operation is critical to maintaining the City's long-term water independence and supply reliability. Relying on MWD water or other outside sources, when necessary, is significantly more expensive than treating the City's own groundwater.
June 15, 2026 Special & Regular CC Mtg Page 124 of 576
Receive and File Status Update on Well No. 2A Nitrate Treatment Plant Expansion Project, Project No. 7630
Project Overview.
The project involves design and construction of a new nitrate removal treatment system using a proprietary regenerable ion exchange (IX) system supplied by Envirogen Technologies, which is the same approach used successfully at Well Nos. 3 and 7A. Key components include:
• Nitrate removal treatment system and associated components • Building expansion, HVAC, piping, and site improvements • Electrical equipment upgrades
• On-site bathroom facility and chlorine room relocations • Flush-to-waste discharge infrastructure
The following summarizes the project status by phase:
Phase Status Summary
Phase 1 – Project
Management
Ongoing. Communication protocols and work plan established. Monthly progress meetings held with Civiltec, Envirogen, and City staff.
Phase 2 – Data
Gathering
Complete. Utility records reviewed, topographic survey completed, field investigations conducted, geotechnical drilling and percolation testing done.
Phase 3 – 30%
Preliminary Design
Complete. 30% submittal delivered December 11, 2025; City review completed December 25, 2025; review meeting held December 26, 2025.
Phase 4 – Final
Design
(60/90/100%/Final)
In Progress. Awaiting final Envirogen drawings (expected by April 29, 2026). 60% submittal preparation scheduled April 30 – June 24, 2026.
Phase 5 –
Permitting & CEQA
In Progress. Draft Categorical Exemption under review. Industrial waste disposal permit initiated with the City of Los Angeles: Building, A-Permit, S-Permit, and U-Permit processing is anticipated to commence in June 2026. (A-Permit is for sidewalk, curb & gutter, and driveway; S-Permit is for sewer lateral connection; U-Permit is for utilities.) Phases 6 & 7 – Bid
& Construction
Upcoming. Bidding to commence late 2026; construction scheduled April 2027 – December 2027. Project closes out by February 2028.
A detailed project schedule (Gantt chart) is included as Attachment “B”.
Environmental Impact.
A Categorical Exemption is being prepared pursuant to CEQA. The Draft Categorical Exemption has been completed and is under City review. Final adoption by City Council and filing with the appropriate agency is anticipated by August 17, 2026.
June 15, 2026 Special & Regular CC Mtg Page 125 of 576
Receive and File Status Update on Well No. 2A Nitrate Treatment Plant Expansion Project, Project No. 7630
BUDGET IMPACT:
The project is fully funded by a state grant awarded by the State Water Resources Control Board (SWRCB) through the Drinking Water State Revolving Fund (DWSRF) Program, Grant Agreement No. D2202021. No additional funds are requested at this time.
Funding Source Amount
State Grant – SWRCB / DWSRF (Principal Forgiveness) $7,000,000 Total Estimated Project Budget $7,000,000
CONCLUSION:
Staff recommends that the City Council receive and file the status update on Well No. 2A Treatment Plant Expansion Project.
ATTACHMENT:
A. Project Vicinity/Location Map
B. Project Schedule (Gantt Chart)
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ATTACHMENT "A"
June 15, 2026 Special & Regular CC Mtg Page 127 of 576
ID Task Name Duration Start Finish
1 Notice to Proceed 1 day Wed 9/3/25 Wed 9/3/25
2 Kick-Off Meeting 1 day Thu 9/11/25 Thu 9/11/25
3 Data Gathering and Site Investigation 45 days Fri 9/12/25 Thu 11/13/25 4 Research and Review 12 days Fri 9/12/25 Mon 9/29/25
5 Topographic Survey 3 days Tue 9/30/25 Thu 10/2/25
6 Base Mapping 10 days Fri 10/3/25 Thu 10/16/25
7 Geotech Investigation 30 days Fri 10/3/25 Thu 11/13/25 8 Construction Documents 342 days Thu 9/4/25 Fri 12/25/26 9 Prepare 30% Submittal 40 days Fri 10/17/25 Thu 12/11/25 10 City 30% Submittal Review 10 days Fri 12/12/25 Thu 12/25/25 11 30% Submittal Review Meeting 1 day Fri 12/26/25 Fri 12/26/25 12 Envirogen Treatment Drawings 170 days Thu 9/4/25 Wed 4/29/26 13 Prepare 60% Submittal 40 days Thu 4/30/26 Wed 6/24/26 14 City 60% Submittal Review 10 days Thu 6/25/26 Wed 7/8/26 15 60% Submittal Review Meeting 1 day Thu 7/9/26 Thu 7/9/26 16 Prepare 90% Submittal Review 90 days Fri 7/10/26 Thu 11/12/26 17 City 90% Submittal Review 10 days Fri 11/13/26 Thu 11/26/26 18 90% Submittal Review Meeting 1 day Fri 11/27/26 Fri 11/27/26 19 Prepare Final Signed and Stamped PS&E 20 days Mon 11/30/26 Fri 12/25/26 20 Equipment Pre-Purchase 461 days Tue 11/4/25 Tue 8/10/27 21 Envirogen Treatment Package 300 days Tue 11/4/25 Mon 12/28/26 22 Switchgear and MCC 300 days Wed 6/17/26 Tue 8/10/27
23 CEQA 205 days Fri 9/12/25 Thu 6/25/26
24 Prepare Admin Draft 145 days Fri 9/12/25 Thu 4/2/26
25 Lead Agency and Responsible Party Review 20 days Fri 4/3/26 Thu 4/30/26 26 Final CEQA Draft 20 days Fri 5/1/26 Thu 5/28/26
27 City Council Adoption and Final Filing 20 days Fri 5/29/26 Thu 6/25/26 28 City Permits 130 days Thu 6/25/26 Wed 12/23/26
29 San Fernandio Building and Safety Permit 130 days Thu 6/25/26 Wed 12/23/26 30 City of LA A-Permit 130 days Thu 6/25/26 Wed 12/23/26 31 City of LA S-Permit 130 days Thu 6/25/26 Wed 12/23/26 32 City of LA U-Permit 130 days Thu 6/25/26 Wed 12/23/26 33 Bidding Phase 61 days Mon 12/28/26 Mon 3/22/27
34 Advertise for Bids 20 days Mon 12/28/26 Fri 1/22/27
35 Evaluate Bids 10 days Mon 1/25/27 Fri 2/5/27
36 Bid Award 1 day Mon 2/8/27 Mon 2/8/27
37 Contract Execution 30 days Tue 2/9/27 Mon 3/22/27
38 Construction Phase 232 days Mon 3/22/27 Wed 2/9/28
39 Contractor Notice to Proceed 0 days Mon 3/22/27 Mon 3/22/27 40 Material Submittals 10 days Tue 3/23/27 Mon 4/5/27
41 Materials Procurement 15 days Tue 4/6/27 Mon 4/26/27 42 Mobilization 2 days Tue 4/27/27 Wed 4/28/27
43 Construction 175 days Thu 4/29/27 Wed 12/29/27
44 Final Punchlist 10 days Thu 12/30/27 Wed 1/12/28
45 Project Closeout 0 days Wed 1/12/28 Wed 1/12/28
46 As-Built Drawings 20 days Thu 1/13/28 Wed 2/9/28
3/22
1/12
8/17 9/7 9/28 10/19 11/9 11/30 12/21 1/11 2/1 2/22 3/15 4/5 4/26 5/17 6/7 6/28 7/19 8/9 8/30 9/20 10/11 11/1 11/22 12/13 1/3 1/24 2/14 3/7 3/28 4/18 5/9 5/30 6/20 7/11 8/1 8/22 9/12 10/3 10/24 11/14 12/5 12/26 1/16 2/6 2/27 3/19 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter City of San Fernando
Well 2A
Nitrate Treamtent Plant
ATTACHMENT "B"
June 15, 2026 Special & Regular CC Mtg Page 128 of 576
June 15, 2026 Special & Regular CC Mtg Page 129 of 576
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June 15, 2026 Special & Regular CC Mtg Page 130 of 576
AGENDA REPORT
REVIEW: ☒ City Clerk ☒ Director of Admin. Services ☒ City Manager ADMINISTRATIVE SERVICES DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-7307 WWW.SANFERNANDO.GOV To: Mayor Joel Fajardo and Councilmembers
From: Kanika Kith, City Manager
By: Erica D. Melton, Director of Administrative Services
Date: June 15, 2026
Subject: Consideration to Approve Authorization to Write-Off Bad Debt for Fiscal Year 2025-2026 from Uncollectible Utility Accounts
RECOMMENDATION:
It is recommended that the City Council approve and authorize staff to write-off bad debts for Fiscal Year (FY) 2025-2026 from uncollectible utility accounts (Attachment “A”).
BACKGROUND:
1. In 2014, in alignment with Generally Accepted Accounting Principles (GAAP), the City Council adopted a citywide General Financial Policy (Attachment “B”), which included provisions for writing off uncollectible debts exceeding $1,000 after three (3) years.
2. As of June 1, 2026, the Finance Division reported three (3) accounts exceeding $1,000 deemed uncollectible and, in turn, recommended to be written off from financial statements prior to the close of the fiscal year.
ANALYSIS:
Effective accounts receivable management, supported by diligent oversight of collections across all revenue sources, is essential to maintaining the City’s financial stability. As part of sound financial management practices, the City utilizes an allowance for doubtful accounts to recognize the portion of receivables that may ultimately prove uncollectible. While staff makes every effort to pursue timely collection of delinquent accounts, including regular notifications, follow-up correspondence, and coordination with customers in instances where outstanding balances become unrecoverable. In such cases, and in accordance with established accounting standards, uncollectible accounts should be written off to ensure the accuracy and integrity of the City’s financial statements.
The City’s Water and Sewer Funds rely heavily on timely customer payments to support ongoing operations, routine maintenance, regulatory compliance, and necessary infrastructure upgrades.
June 15, 2026 Special & Regular CC Mtg Page 131 of 576
Consideration to Approve Authorization to Write-Off Bad Debt for Fiscal Year 2025-2026
To minimize the risk of revenue loss due to non-payment, the City employs several preventative measures, including requiring utility account holders to provide valid identification, a minimum deposit, and acceptable documentation verifying residential or business occupancy. These measures help ensure that customers have both an established identity and a legitimate connection to the service address associated with the utility account.
Despite these safeguards, some accounts become severely delinquent and remain unpaid for extended periods. Per the City’s General Financial Policy (Attachment “B”), accounts are eligible for write-off when they exceed three (3) years in delinquency and all reasonable collection efforts have been exhausted. Under California law, liabilities created by statute, such as utility charges, are subject to a three-year statute of limitations under California Code of Civil Procedure section 338(a), which provides that “an action upon a liability created by statute…must be commenced within three years.” This policy ensures that write-off is triggered no later than when the limitations period expires, though it does not relieve the debtor of the underlying obligation; it merely removes the amount from the City’s financial statements to reflect its uncollectible status more accurately.
For FY 2025–2026, staff has identified three (3) accounts that meet the criteria requiring City Council review due to delinquency beyond three (3) years and balances greater than $1,000. The combined total of these recommended write-offs is $7,722.16, representing a minimal fraction of the overall utility billing revenue. Staff will continue to monitor account activity closely, assess current policies and procedures, and identify opportunities to further strengthen collection practices in advance of the next fiscal cycle. These ongoing efforts reflect the City’s commitment to responsible financial stewardship and the prudent management of public resources.
BUDGET IMPACT:
Per best financial management and accounting principles, the City includes an annual allowance for uncollectible debt. The amount being requested to be written off is well below the City’s allowance and will not significantly impact the City’s financial position.
CONCLUSION:
Staff recommends City Council authorize staff to write-off bad debts from uncollectible utility accounts receivable.
ATTACHMENTS:
A. Accounts to be Written Off for FY 2025-2026
B. General Financial Policy
June 15, 2026 Special & Regular CC Mtg Page 132 of 576
Acct No. Description Prime Location Address Acct Bal Due Closed Date 56-0590-04 Unpaid Utility Bill 712 Arroyo Street $1,131.86 1/20/2023 43-2380-01 Unpaid Utility Bill 1901 First Street $2,757.87 1/3/2023 35-2305-06 Unpaid Utility Bill 1407 Truman Street $3,832.42 4/25/2023 TOTAL: $7,722.15
FY 2025-2026: Write Offs of Receivables Over $1K
ATTACHMENT "A"
June 15, 2026 Special & Regular CC Mtg Page 133 of 576
CITY OF SAN FERNANDO POLICY/PROCEDURE
NUMBER SUBJECT
ORIGINAL ISSUE
11/03/2014
EFFECTIVE
11/03/2014
GENERAL FINANCIAL POLICY
CURRENT ISSUE EFFECTIVE CATEGORY
FINANCE
SUPERSEDES
Section 1. Purpose.
To establish a comprehensive set of Citywide financial principles to serve as a guideline for operational and strategic decision making.
Section 2. Statement of Policy.
The City is committed to fiscal sustainability by employing long-term financial planning efforts, maintaining appropriate reserve levels and adhering to prudent practices in governance, management, budget administration and financial reporting.
The following financial principles are intended to establish a comprehensive set of guidelines for the City Council and City staff to follow when making decisions that may have a fiscal impact (collectively known as “Policy”). The goal is to maintain the City’s financial stability in order to be able to continually adapt to local and regional economic changes. Such principles will allow the City to maintain and enhance a sound fiscal condition. This policy should be implemented in conjunction with associated financial policies, i.e. Budget Policy, Purchasing Policy, Investment Policy, Grant Management Policy, etc.
This Policy will be reviewed annually as part of the City’s annual Adopted Budget to ensure that the principles contained herein remain current. The City’s comprehensive financial policies shall be in conformance with all State and Federal laws, Generally Accepted Accounting Principles (GAAP) and standards of the Governmental Accounting Standards Board (GASB), and the Government Finance Officers Association (GFOA).
Financial principles included in this Policy are:
Chapter 1: Long-term Financial Planning
Chapter 2: Auditing, Financial Reporting and Disclosure Chapter 3: Revenue Collection
Chapter 4: Investment and Cash Management
Chapter 5: Capital Assets and Capital Improvement Projects Chapter 6: Financial Reserves and Fund Balances
Chapter 7: Post-employment Benefit Funding
Chapter 8: Grant Administration
Chapter 9: User Fees and Service Charges
Chapter 10: Cost Allocation
Chapter 11: Debt Management
June 15, 2026 Special & Regular CC Mtg
ATTACHMENT "B"
GENERAL FINANCIAL POLICY
CHAPTER 1: LONG-TERM FINANCIAL PLANNING
1. The City shall maintain a General Fund Financial Forecast that looks forward at least five fiscal years into the future.
The City shall consider immediate proactive measures when deficits between recurring revenues and recurring expenditures exist, even in outer years. The Forecast shall be updated at least bi-annually, as part of the mid-year budget review and annual budget process.
2. The City Council, City Manager and Executive Management will consider the effects of proposals for new or enhanced services, employee negotiations, tax/fee changes, or similar items, on the General Fund financial forecast.
The City should be able to fund any such enhancements or changes in both the short-term and long-term to ensure sustainability of the enhancements.
3. The City shall develop and implement a financial plan to address its funding needs for issues like deferred maintenance and unfunded liabilities, which will be included in the General Fund financial forecast.
4. The City shall seek a balance in the overall revenue structure between more stable revenue sources (e.g. Property Tax) and economically sensitive revenue sources (e.g. Sales and Use Tax).
5. The City will proactively seek to protect and expand its tax base by encouraging a healthy underlying economy.
6. The City will work to protect and enhance the property values of all San Fernando residents and property owners.
7. The City will encourage the economic development of the community as a whole in order to provide stable and increasing revenue streams. It should be the City’s goal to attract new businesses as well as retain successful businesses in the City. Objectives of a sound economic development strategy should also include: avoiding an over reliance on revenue from any one particular industry; recruitment and retention efforts to ensure a balance of revenue sources; ensuring compatible uses; encouraging business synergies; and promoting the growth of amenities and ancillary services to support business districts and established industries.
8. The City shall develop and maintain methods for the evaluation of future development and related fiscal impacts on the City budget.
9. Every reasonable effort will be made to establish revenue measures which will cause non-residents (i.e. transients and recreational visitors) to carry a fair portion of the expenses incurred by the City as a result of their use of public facilities.
10. The City will establish appropriate cost-recovery targets for its fee structure and will adjust its Master Fee Schedule annually to ensure that fees continue to meet cost recovery targets. The Finance Department may study, internally or using an outside consultant, the costs of providing such services and recommend fees to each department. (See also Chapter 10: User Fees and Service Charges)
11. Special services, which are characterized by an activity that is above and beyond the level of service typically provided by the City, will be self-supported from service fees to the maximum extent possible. Service fees shall be established in the Master Fee Schedule in compliance with applicable State law, and shall be periodically reviewed for compliance with applicable State law.
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GENERAL FINANCIAL POLICY
12. The City will oppose efforts by State and County governments to divert revenues from the City or to increase unfunded service mandate of City taxpayers.
13. The City will seek additional intergovernmental funding and grants, with a priority on funding one-time capital projects.
Grant-funded projects that require multi-year support will be reviewed by City Council.
14. The City will not rely on one-time revenue sources to fund operations. One-time revenues sources, whenever possible, will be used to fund one-time projects, augment reserve balances or fund unfunded liabilities.
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GENERAL FINANCIAL POLICY
CHAPTER 2: AUDITING, FINANCIAL REPORTING, AND DISCLOSURE Preparation of Financial Statements
Accounting standards boards and regulatory agencies set the minimum standards and disclosure requirements for annual financial reports and continuing disclosure requirements for municipal securities. The City places a high value on transparency and full disclosure in all matters concerning the City’s financial position and results of operations. To this end, the City endeavors to provide superior information in the City’s Comprehensive Annual Financial Report (CAFR) and Continuing Disclosure filings by going above and beyond the minimum reporting requirements, including participation in certificate of achievement accreditation programs and voluntary event disclosure filings.
The City prepares its financial statements in conformance with Generally Accepted Accounting Principles (GAAP).
Responsibility for the accuracy and completeness of the financial statements rests with the City. However, the City retains the services of an external accounting firm to audit the financial statements on an annual basis. The primary point of contact for the auditor is the Finance Director, but the auditors will have direct access to the City Manager, City Attorney, or City Council on any matters they deem appropriate.
The financial statement audit and compliance audits will be conducted in accordance with the United States Generally Accepted Auditing Standards (GAAS), standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller of the United States, and standards set by regulatory agencies, if applicable.
As soon as practical after the end of the fiscal year, a final audit and report shall be submitted to the City Council, City Treasurer, City Manager, Finance Director, City Clerk and City Attorney. The final audit and report shall be posted to the City’s website and five copies will be placed on file in the office of the Finance Director where they shall be available for inspection by the general public as long as is required by the City’s record retention policy. A digital copy will be archived and available at any time.
After audit results have been communicated to the City, the Finance Department is responsible for responding to all findings, if any, within six months. Responses shall be provided to the City Manager and any appropriate regulatory agencies.
Independent Audit Firm
The City Council shall retain, for a contract period not to exceed three years, a qualified independent certified public accounting to examine the City’s financial records and procedures on an annual basis. After soliciting and receiving written proposals from qualified independent accounting firms, the Finance Director shall submit a recommendation to the City Manager and City Council. Generally, the City will request proposals for audit services every three years. It is the City’s policy to require mandatory audit firm rotation after nine years of consecutive service.
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GENERAL FINANCIAL POLICY
CHAPTER 3: REVENUE COLLECTION AND ACCOUNTS RECEIVABLE
1. The City will pursue revenue collection and auditing to ensure that monies due the City are accurately received in a timely manner.
2. The City will seek reimbursement from the appropriate agency for State and Federal mandated costs whenever possible and cost-effective.
3. The City should centralize accounts receivable/collection activities wherever possible so that all receivables are handled consistently.
Write Off Bad Debt
Accounts receivable management and diligent oversight of collections from all revenue sources is imperative. Sound financial management principles include the establishment of an allowance for doubtful accounts. Efforts will be made to pursue the timely collection of delinquent accounts. When such accounts are deemed uncollectible, they should be writtenoff from the financial statements. a. The Finance Director, with the approval of the City Manager, is authorized to write off uncollectible individual accounts less than or equal to $1,000. In such cases, the Finance Director must prepare a memorandum for City Manager review and approval documenting the accounts to be written off, the age of the debt, reasons for writing off each account and evidence of collection attempts taken on the account. b. Past due accounts of greater than $1,000 may be written off with approval by the City Council. To write off accounts exceeding $1,000, the Finance Director must prepare an Agenda Report for City Council review and approval documenting the accounts to be written off, the age of the debt, reasons for writing off each account and evidence of collection attempts taken on the account.
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GENERAL FINANCIAL POLICY
CHAPTER 4: INVESTMENT AND CASH MANAGEMENT
1. Cash and investment programs will be maintained in accordance with California Government Code Section 53600 et seq. and the City’s adopted Investment Policy to ensure that proper controls and safeguards are maintained.
Pursuant to State law, the City, at least annually, revises, and the City Council affirms, a detailed Investment Policy.
2. Reports on the City’s investment portfolio and cash position will be developed and presented to the City Council by the City Treasurer on at least a quarterly basis, in conformance with the California Government Code.
3. City funds will be managed in a prudent and diligent manner with emphasis on safety, liquidity, and yield, in that order.
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GENERAL FINANCIAL POLICY
CHAPTER 5: CAPITAL ASSETS AND CAPITAL IMPROVEMENT PLAN
1. A Capital Asset is defined as land, structures and improvements, machinery and equipment and infrastructure assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. Capital assets also include additions to public domain (infrastructure) which includes certain improvements such as pavement, curb and gutter, sidewalks, traffic control devices, and right-of-way corridors within the City.
2. Depreciation of Capital Assets is computed using the straight-line method over the estimated useful lives of assets, which are as follows:
Buildings 50 years
Infrastructure Up to 50 years
Improvements Other than Buildings 20 years
Furniture and Equipment Up to 30 years
Vehicles and Related Equipment Up to 8 years
3. A Capital Improvement Project (CIP) is defined as meeting one of the following criteria:
a. It is construction, expansion, renovation, or replacement of a city owned facility or infrastructure. The project must have a total cost of at least $25,000 over the life of the project. Project costs include, but are not limited to, the cost of land, engineering, architectural planning, and contract services needed to complete the project; or b. It is a purchase of major equipment (assets) costing $25,000 or more with a useful life of at least 5 years; or c. It is a major maintenance or rehabilitation project for existing facilities with a cost of $25,000 or more and an economic life of at least 5 years.
4. A five-year Capital Improvement Plan will be developed and updated annually. The Plan shall include a brief description of the project, estimated project costs, and anticipated funding source(s) for the project.
5. The Capital Improvement Plan will identify, where applicable, current operating maintenance costs and funding streams available to repair and/or replace deteriorating infrastructure and avoid significant unfunded liabilities.
6. The City should develop and implement a post-implementation evaluation of its infrastructures condition on a specified periodic basis, estimating the remaining useful life, and projecting replacement costs.
7. The City will actively pursue outside funding sources for all CIPs. Outside funding sources, such as grants, will be used to finance only those CIPs that are consistent with the five-year Capital Improvement Plan and local governmental priorities, and whose operating and maintenance costs have been included in future operating budget forecasts.
8. CIP lifecycle costs will be coordinated with the development of the Operating Budget. Future operating, maintenance and replacement costs associated with new capital improvements will be forecasted, matched to available revenue sources, and included in the Operating Budget. CIP contract awards will include a fiscal impact statement disclosing the expected operating impact of the project and when such cost is expected to occur.
9. Financing of CIPs will be considered if it conforms to Chapter 11: Debt Management section of this Policy.
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GENERAL FINANCIAL POLICY
CHAPTER 6: FINANCIAL (FUND) RESERVES AND FUND BALANCES
Prudent financial management dictates that some portion of the funds available to the City be reserved for future use.
As a general principle, the City Council decides whether to appropriate funds from reserve accounts. Even though a project or other expenditure qualifies as a proper use of reserves, the City Council may decide that it is more beneficial to use current year operating revenues or other available funds instead, thereby retaining the reserve funds for future use. Reserve funds will not be spent for any function other than the specific purpose of the reserve account from which they are drawn without specific direction in the annual budget; or by a separate City Council action. Information regarding annual budget adoption and administration is contained in the City’s Budget Policy.
Governmental Funds and Fund Balance Defined
Governmental Funds, including the General Fund, Special Revenue Funds, Capital Projects Funds, and Debt Service Funds, have a short-term or current flow of financial resources measurement focus and basis of accounting and therefore, exclude long-term assets and long-term liabilities. The term Fund Balance, used to describe the resources that accumulate in these funds, is the difference between the fund assets and fund liabilities of these funds. Fund Balance is similar to the measure of net working capital that is used in private sector accounting. By definition, both Fund Balance and Net Working Capital exclude long-term assets and long-term liabilities.
Proprietary Funds and Net Working Capital Defined
Proprietary Funds, including Enterprise Funds and Internal Service Funds have a long-term or economic resources measurement focus and basis of accounting and therefore, include long-term assets and liabilities. This basis of accounting is very similar to that used in private sector. However, instead of Retained Earnings, the term Net Position is used to describe the difference between fund assets and fund liabilities. Since Net Position includes both long-term assets and liabilities, the most comparable measure of proprietary fund financial resources to governmental Fund Balance is Net Working Capital, which is the difference between current assets and current liabilities. Net Working Capital, like Fund Balance, excludes long-term assets and long-term liabilities.
Governmental Fund Reserves (Fund Balance)
For Governmental Funds, the Governmental Accounting Standards Board (GASB) Statement No. 54 defines five specific classifications of fund balance. The five classifications are intended to identify whether the specific components of fund balance are available for appropriation and are therefore “Spendable.” The classifications also are intended to identify the extent to which fund balance is constrained by special restrictions, if any. Applicable only to governmental funds, the five classifications of fund balance are as follows:
CLASSIFICATIONS NATURE OF RESTRICTION
Non-Spendable Cannot be readily converted to cash
Restricted Externally imposed restrictions
Committed City Council imposed commitment
Assigned City Manager/Finance Director assigned purpose/intent Unassigned Residual balance not otherwise restricted
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GENERAL FINANCIAL POLICY
1. Non-Spendable Fund Balance: The portion of fund balance that includes amounts that are either (a) not in a spendable form, or (b) legally or contractually required to be maintained intact. Examples of Non-spendable fund balance include:
a. Reserve for Inventories: The value of inventories purchased by the City but not yet issued to the operating Departments is reflected in this account.
b. Reserve for Long-Term Receivables and Advances: This category is used to identify and segregate the City’s financial assets that are not due to be received for an extended period of time, so are not available for appropriation during the budget year.
c. Reserve for Prepaid Assets: This category includes resources that have been paid to another entity in advance of the accounting period in which the resource is deducted from fund balance. A common example is an insurance premium, which is typically payable in advance of the coverage period. Although prepaid assets have yet to be deducted from fund balance, they are no longer available for appropriation.
2. Restricted Fund Balance: The portion of fund balance that reflects constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments (e.g. Debt Reserve funds); or (b) imposed by law through constitutional provisions or enabling legislation. The City operates a number of special revenue funds that account for items such as gas tax revenues distributed by the State, local return portions of County-wide sales tax overrides dedicated to transportation, grants from Federal or State agencies with specific spending restrictions, and Section 8 and CDBG funds from the Federal government with very specific spending limitations, to name a few. Since these funds are established because of the specific spending limitations on them, any year-end balances are still restricted for these purposes.
3. Committed Fund Balance: That portion of fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action by the government’s highest level of decision making authority, and remain binding unless removed in the same manner. The City considers adoption of a Resolution as a formal action for the purposes of establishing committed fund balance. The action to constrain resources must occur within the fiscal reporting period; however the amount can be determined subsequently. City Council imposed Commitments are as follows:
a. Contingency Funds: The Contingency Funds shall have a target balance of twenty percent (20%) of General Fund “Operating Budget” as originally adopted. Operating Budget for this purpose shall include current expenditure appropriations and shall exclude Capital Improvement Projects and Transfers Out. Appropriation and/or access to these funds are reserved for emergency situations only. The parameters by which the Contingency Funds could be accessed would include the following circumstances:
i. A catastrophic loss of critical infrastructure requiring an expenditure of greater than or equal to five percent (5%) of the General Fund, Operating Budget, as defined above. ii. A State or Federally declared state of emergency where the City response or related City loss is greater than or equal to five percent (5%) of the General Fund, Operating Budget. iii. Any settlement arising from a claim or judgment where the loss exceeds the City’s insured policy coverage by an amount greater than or equal to five percent (5%) of the General Fund Operating Budget, and there are insufficient reserves available in the Self Insurance Fund to cover the loss. iv. Deviation from budgeted revenue projections in the top three General Fund revenue categories, namely, June 15, 2026 Special & Regular CC Mtg Page 142 of 576
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Sales Taxes, Property Taxes and Business Taxes, in a cumulative amount greater than or equal to five percent (5%) of the General Fund Operating Budget.
v. Any action by another government that eliminates or shifts revenues from the City amounting to greater than or equal to five percent (5%) of the General Fund, Operating Budget. vi. Inability of the City to meet its debt service obligations in any given year. vii. Any combination of factors a) i-vi amounting to greater than or equal to five percent (5%) of the General Fund Operating Budget in any one fiscal year.
Use of Contingency Funds must be approved by the City Council. Should Contingency Funds be used, the City Manager shall present a plan to City Council to replenish the funds within five years.
4. Assigned Fund Balance: That portion of a fund balance that includes amounts that are constrained by the City’s intent to be used for specific purposes, but that are not restricted or committed. This policy hereby delegates the authority to the City Manager or Finance Director to modify or create new assignments of fund balance. Constraints imposed on the use of assigned amounts may be changed by the City Manager or Finance Director. Appropriations of balances are subject to the Budget Policy concerning budget adoption and administration. Examples of assigned fund balance may include, but are not limited to:
a. Reserves for Encumbrances: Purchase Orders and contracts executed by the City express intent to purchase goods or services. Generally, such documents include a cancellation clause, where the City would then only be responsible to pay for goods received or services provided. The City recognizes the obligation to pay for these goods and services as a reservation of fund balance, but because the City can ultimately free itself of this obligation if necessary, it does not meet the requirements of the more restrictive fund balance categorizations. b. Change in Fair Market Value of Investments: As dictated by GASB 31, the City is required to record investments at their fair value (market value). This accounting practice is necessary to insure that the City’s investment assets are shown at their true value as of the balance sheet. However, in a fluctuating interest rate environment, this practice records market value gains or losses which may never be actually realized. The City Manager or Finance Director may elect to reserve a portion of fund balance associated with an unrealized market value gain.
However, it is impractical to assign a portion of fund balance associated with an unrealized market value loss.
When the City Manager or Finance Director authorizes a change in General Fund, Assigned Fund Balance, City Council shall be notified quarterly.
5. Unassigned fund balance/Reserve: The residual portion of available fund balance that is not otherwise restricted, committed or assigned. This amount is considered the City’s available reserve, or budget reserve.
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General Fund Surplus
At the end of each fiscal year, the difference between General Fund revenues and expenditures results in either a surplus (adding to fund balance) or deficit (subtracting from fund balance). In the case of a surplus, the policy for allocation shall follow these priorities:
1. Full funding of the twenty percent (20%) Contingency Fund.
2. If the Contingency Funds are fully satisfied, the remainder shall revert to Unassigned fund balance/reserve.
The City Manager may recommend a different allocation for approval by the City Council.
Proprietary Fund Reserves (Net Working Capital)
In the case of Proprietary Funds (Enterprise and Internal Service Funds), Generally Accepted Accounting Principles (GAAP) do not permit the reporting of reserves on the face of City financial statements. However, this does not preclude the City from setting policies to accumulate financial resources for prudent financial management of its proprietary fund operations.
Since proprietary funds may include both long-term capital assets and long-term liabilities, the most comparable measure of liquid financial resources that is similar to fund balance in proprietary funds is net working capital, which is the difference between current assets and current liabilities. For all further references to reserves in Proprietary Funds, Net Working Capital is the intended meaning.
1. Water, Sewer and Refuse Funds
a. Stabilization and Contingency Funds: This amount is used to provide sufficient funds to support seasonal variations in cash flows and, in more extreme conditions, to maintain operations for a reasonable period of time so the City may reorganize in an orderly manner or effectuate a rate increase to offset sustained cost increases.
The intent is to provide funds to offset cost increases that are projected to be short-lived, thereby partially eliminating the volatility in annual rate adjustments. It is not intended to offset ongoing, long-term pricing structure changes. The target level of the Contingency Fund is twenty-five percent (25%) of the annual operating budget. This reserve level is intended to provide a reorganization period of three months with zero income or twelve months at a twenty-five percent (25%) loss rate. The City Council must approve the use of these funds, based on City Manager recommendation. Funds collected in excess of the Stabilization reserve target would be available to offset future rate adjustments, while extended reserve shortfalls would be recovered from future rate increases. Should catastrophic losses occur, Stabilization and Contingency Funds may be called upon to avoid disruption to service. The Stabilization and Contingency principle applies to each proprietary fund individually, not all proprietary funds collectively.
b. Infrastructure Replacement Funding: This funding principle is intended to be a temporary repository for cash flows associated with the funding of infrastructure replacement projects provided by the Water Master Plan and Sewer Master Plan. The contribution rate is intended to level-amortize the cost of infrastructure replacement projects over a long period of time. The annual funding rate of the Water and Sewer Master Plans is targeted at an amount that, when combined with prior or future year contributions, is sufficient to provide for the eventual replacement of assets as scheduled in each respective Plan. This contribution principle should be updated periodically based on the most current Master Plan. There are no minimum or maximum balances contemplated by this funding principle. However, the contributions level should be reviewed periodically or as major updates to the Wastewater Master Plan occur. Annual funding is contingent on many factors and may ultimately involve a combined strategy of cash funding and debt issuance with the intent to normalize the burden on customer rates.
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2. Internal Service Funds
Internal Service Funds are used to centrally manage and account for specific program activity in a centralized cost center. Their revenue generally comes from internal charges to departmental operating budgets rather than direct appropriations. The function of Internal Service Funds include:
a. Normalizing departmental budgeting for programs that have life-cycles greater than one year; thereby facilitating level budgeting for expenditures that will, by their nature, be erratic from year to year. This also facilitates easier identification of long-term trends.
b. Acting as a strategic savings plan for long-term assets and liabilities. c. Enabling appropriate distribution of City-wide costs to individual departments, thereby more readily establishing true costs of various operations.
Since departmental charges to Internal Service Funds duplicate the ultimate expenditure from the Internal Service Fund, they are eliminated when consolidating entity-wide totals.
The measurement criteria, cash flow patterns, funding horizon and acceptable funding levels are unique to each program being funded. Policy regarding target balance and/or contribution policy, gain/loss amortization assumption, source data, and governance for each of the City’s Internal Service Funds is set forth as follows:
For All Internal Service Funds: The Finance Director may transfer part or all of any unencumbered fund balance between Internal Service Funds, provided that the transfer would not cause insufficient reserve levels or insufficient resources to carry out the fund’s intended purpose. This action is appropriate when the decline in cash balance in any fund is precipitated by an off-trend non-recurring event (e.g. a large judgment funded by the Self Insurance Fund). The Finance Director will make such recommendations as part of the annual budget adoption or through separate City Council action.
Equipment Replacement Fund Reserve: The Equipment Replacement Fund receives operating money from the operating Departments to fund the regular replacement of major pieces of equipment (mostly vehicles) at their economic obsolescence.
Operating Departments are charged annual amounts sufficient to accumulate funds for the replacement of vehicles, communications equipment, technology equipment and other equipment determined appropriate by the Finance Director. The City Manager recommends annual rate adjustments as part of the budget preparation process. These adjustments are based on pricing, future replacement schedules and other variables.
The age and needs of the equipment inventory vary from year to year. Therefore the year-end fund balance will fluctuate in direct correlation to accumulated depreciation. In general, it will increase in the years preceding the scheduled replacement of relatively large percentage of the equipment, on a dollar value basis. However, rising equipment costs, dissimilar future needs, replacing equipment faster than their expected life or maintaining equipment longer than their expected life all contribute to variation from the projected schedule.
In light of the above, the target funding level is not established in terms of a flat dollar figure or even a percentage of the overall value of the equipment inventory. It is established at fifty percent (50%) of the current accumulated depreciation value of the equipment inventory, calculated on a replacement value basis. This will be reconciled June 15, 2026 Special & Regular CC Mtg Page 145 of 576
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annually as part of the year-end close out process by the Finance Department. If departmental replacement charges for equipment prove to be excessive or insufficient with regard to this target funding level, new rates established during the next budget cycle will be adjusted with a view toward bringing the balance back to the target level over a three-year period.
Self-Insurance Fund Reserve: The Self-Insurance fund pays for insurance premiums, benefit and settlement payments, and administrative and operating expenses. It is supported by charges to other City funds for the services it provides. These annual charges for service shall reflect the five-year historical experience and shall be set to equal the annual expenses of the fund.
The Self-Insurance Fund reserve (Liability and Workers’ compensation) will be maintained at a level which, together with purchased insurance policies, adequately indemnifies the City’s property, liability, and health benefit risk from one-time fluctuations. A qualified actuarial firm shall be retained on an annual basis (typically through the City’s insurance risk pool) in order to recommend appropriate funding levels, which will be approved by City Council. The City should maintain minimum reserves equal to sixty percent (60%) of the five-year average of total Self-Insurance Fund costs.
To lessen the impact of short-term annual rate change fluctuation, the City Manager may implement one-time fund transfers (rather than department rate increases) when funding shortfalls appear to be due to unusually sharp and non-recurring factors. Excess reserves in other areas may be transferred to the Self Insurance FUnd in these instances, but such transfers should not exceed the funding necessary to reach the reserve level defined above.
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CHAPTER 7: POST-EMPLOYMENT BENEFIT FUNDING
Pension Funding: The City’s principal Defined Benefit Pension program is provided through multiple contracts with California Public Employees Retirement System (CalPERS). The City’s contributions to the plan include a fixed employer paid member contribution and an actuarially determined employer contribution that fluctuates each year based on an annual actuarial plan valuation. This variable rate employer contribution includes the normal cost of providing the contracted benefits plus or minus an amortization of plan changes and net actuarial gains and losses since the last valuation period.
It is the City’s policy to make contributions to the plan equaling at least one hundred percent (100%) of the actuarially required contribution (annual pension cost). Because the City pays the entire actuarially required contribution each year, by definition, its net pension obligation at the end of each year is $0. Any Unfunded Actuarial Liability (UAL) is amortized and paid in accordance with the actuary’s funding recommendations. The City will strive to maintain its UAL within a range that is considered acceptable to actuarial standards. The City Council shall consider increasing the annual CalPERS contribution should the UAL status fall below acceptable actuarial standards.
Other Post-Employment Benefits (OPEB) Funding: The City contributes to a single-employer defined benefit plan to provide post-employment health care benefits. Subject to the terms provided in the applicable Memorandum of Understanding (MOU), the City pays 100% of all premiums charged for health insurance for qualifying retired employees and their dependent spouses or survivors.
The City's annual OPEB cost is calculated based on the Annual Required Contribution (ARC) of the employer, an amount actuarially determined in accordance with parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded liabilities of the plan over a period not to exceed thirty years. The City is currently unable to make the full ARC payment and is funding this obligation on a pay-as-you-go basis, which creates a significant unfunded liability.
It is the City’s intention to develop a plan to establish or participate in a pre-funding trust and fully fund the ARC. Once a plan is developed, the City will strive to maintain a funded status that will be within a range that is considered acceptable to actuarial standards. The City Council will consider increasing the annual OPEB contribution should the funded status fall below acceptable actuarial standards. The City Council will also consider increasing the annual OPEB contribution when possible to reduce the amortization period.
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CHAPTER 8: GRANT ADMINISTRATION
Individual departments are encouraged to investigate sources of funding relevant to their respective departmental activities.
The department applying for a grant or receiving a restricted donation will generally be considered the Program Administrator of the grant. The Finance Department may assist in the financial administration and reporting of the grant, but the Program Administrator is ultimately responsible for meeting all terms and conditions of the grant, insuring that only allowable costs are charged to the grant program and adhering to City budgeting and purchasing procedures. Individual Departments and Program Administrators are not authorized to execute grant contracts. Grant contracts shall be reviewed by the City Attorney’s Office and executed by the City Manager and/or City Council.
Refer to the City’s Grant Management Policy for detailed information.
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CHAPTER 9: USER FEES AND SERVICE CHARGES
The City charges user fees and charges for services which are of special benefit to easily identified individuals or groups.
The City will establish appropriate cost-recovery targets for its fee structure and will annually adjust its Master Fee Schedule to ensure that the fees continue to meet cost recovery targets and account for changes in methods or levels of service delivery. The Finance Department may study, internally or using an outside consultant, the cost of providing such services and recommend fees to each department.
General Concepts Regarding the User Fees and Service Charges: The following general concepts will be used in developing and implementing user fees and service charges:
1. Revenues shall not exceed the reasonable cost of providing the service.
2. Cost recovery goals shall be based on the total cost of delivering the service, including direct costs, departmental administration costs, and organization-wide support costs, including, but not limited to, accounting, payroll, personnel, data processing, vehicle maintenance, and insurance.
3. The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection.
4. For rental of real property, rate structures should be sensitive to the “market” for similar services as well as to smaller, infrequent users of the service.
5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above.
User Fee Cost Recovery Levels: In setting user fee cost recovery levels, the following factors will be considered:
1. Community-Wide vs. Special Benefit: The level of user fee cost recovery should consider the community-wide versus special service nature of the program or activity. The use of general purpose (tax) revenues is appropriate for community-wide services, while user fees are appropriate for services which are of special benefit to easily identified individuals or groups.
2. Service Recipient vs. Service Driver: After considering community-wide versus special benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City’s development review efforts; the community is the primary beneficiary.
However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate.
3. Effect of Pricing on the Demand for Services: The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At full cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overlystimulated by artificially low prices. Conversely, high-levels of cost recovery will negatively impact the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low income groups.
4. Feasibility of Collection and Recovery: Although it may be determined that a high-level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source.
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Factors Which Favor Low Cost Recovery Levels: Very low cost recovery levels are appropriate under the following circumstances:
1. There is no intended relationship between the amount paid and the benefit received. Almost all “social service” programs fall into this category as it is expected that one group will subsidize another.
2. Collecting fees is not cost-effective or will significantly impact the efficient delivery of the service.
3. There is no intent to limit the use of (or entitlement to) the service. Again, most “social service” programs fit into this category as well as many public safety emergency response services. Historically, access to neighborhood and community parks would also fit into this category.
4. The service is non-recurring, generally delivered on a “peak demand” or emergency basis, cannot reasonably be planned for on an individual basis, and is not readily available from a private sector source. Many public safety services also fall into this category.
5. Collecting fees would discourage compliance with regulatory requirements and adherence is primarily self-identified, and as such, failure to comply would not be readily detected by the City. Many small-scale licenses and permits might fall into this category.
Factors Which Favor High Cost Recovery Levels: The use of user fees and service charges as a major source of funding service levels is especially appropriate under the following circumstances:
1. The service is similar to services provided through the private sector.
2. Other private or public sector alternatives could or do exist for the delivery of the service.
3. For equity or demand management purposes, it is intended that there be a direct relationship between the amount paid and the level and cost of the service received.
4. The use of the service is specifically discouraged. Police responses to disturbances or false alarms might fall into this category.
5. The service is regulatory in nature and voluntary compliance is not expected to be the primary method of detecting failure to meet regulatory requirements. Building permit, plan checks, and subdivision review fees for large projects would fall into this category.
Enterprise Fund Fees and Rates
1. The City will set fees and rates at levels which fully cover the total direct and indirect costs-including operations, capital outlay, and debt service of the following enterprise programs; Water, Sewer (wastewater), and Refuse.
2. The City will review and adjust enterprise fees and rate structures as required to ensure that they remain appropriate and equitable.
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CHAPTER 10: COST ALLOCATION PLAN
A Cost Allocation Plan allows the City to fairly and completely allocate its administrative and overhead costs to all divisions.
This allows the General Fund to recover costs from Enterprise Funds, Grant Funds, and also determines the overhead costs on the hourly rates of staff providing fee based services. A cost allocation study should be prepared by the Finance Department, either internally or using an outside consultant, biennially (i.e., every two years).
Office of Management and Budget Circular A-87 (OMB A-87) Plan: Using actual expenditures and documented time allocations, the OMB A-87 Plan follows the guidelines outlined by the Federal government through OMB Circular A-87. This plan is used for Federal grant administrative cost recovery.
Total Cost Plan: When grant regulations are not an issue, a Total Cost Plan, which uses the costs that the OMB A-87 Plan disallows, is able to allocate all indirect costs like the private sector routinely does. This plan is recommended whenever the goal is to fully allocate indirect costs for interfund transfers and fee calculations.
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CHAPTER 11: DEBT MANAGEMENT
Debt levels and their related annual costs are important long-term obligations that must be managed within available resources. A disciplined thoughtful approach to debt management includes policies that provide guidelines for the City to manage its debt program in-line with those resources. Therefore, the objective of this policy is to provide written guidelines and restrictions concerning the amount and type of debt issued by the City and the ongoing management of the debt portfolio.
This debt management policy is intended to improve the quality of decisions, provide justification for the structure of debt issuance, identify policy goals and demonstrate a commitment to long-term financial planning, including a multi-year capital plan. Adherence to a debt management policy signals to rating agencies and the capital markets that a government is well managed and should meet its obligations in a timely manner.
Conditions and Purposes Of Debt Issuance
Acceptable Conditions for the Use of Debt: Prudent amounts of debt can be an equitable and cost- effective means of financing major infrastructure and capital project needs. As such, debt will be considered to finance such projects if:
1. It meets the City’s 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;
2. It is the most cost-effective funding means available to the City, taking into account cash flow needs and other funding alternatives; or
3. It is fiscally prudent and meets the guidelines of this Policy. Any consideration of debt financing shall consider financial alternatives, including pay-as-you-go funding, proceeds derived from development or redevelopment of existing land and capital assets owned by the City, and use of existing or future cash reserves, or combinations thereof.
Acceptable Uses of Debt: The City will consider financing for the acquisition, substantial refurbishment, replacement or expansion of physical assets, including land improvements. The primary purpose of debt is to finance one of the following:
1. Acquisition and or improvement of land, right-of-way or long-term easements.
2. Acquisition of a capital asset with a useful life of three or more years.
3. Construction or reconstruction of a facility.
4. Refunding, refinancing, or restructuring debt, subject to refunding objectives and parameters discussed in the Refunding Guidelines section of the Policy.
5. Although not the primary purpose of the financing effort, project reimbursables that include project planning design, engineering and other preconstruction efforts; project-associated furniture fixtures and equipment; capitalized interest, original issuer’s discount, underwriter’s discount and other costs of issuance.
6. Interim or cash flow financing, such as anticipation notes.
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Prohibited Uses of Debt: Prohibited uses of debt include the following:
1. Financing of operating costs except for anticipation notes with a term of less than one year.
2. Debt issuance used to address budgetary deficits.
3. Debt issued for periods exceeding the useful life of the asset or projects to be financed.
Use of Alternative Debt Instruments
The City recognizes that there are numerous types of financing structures and funding sources available, each with specific benefits, risks, and costs. All potential funding sources are reviewed by management within the context of the Debt Policy and the overall portfolio to ensure that any financial product or structure is consistent with the City’s objectives. Regardless of what financing structure(s) is utilized, due-diligence review must be performed for each transaction, including the quantification of potential risks and benefits, and analysis of the impact on City creditworthiness and debt affordability and capacity.
Variable Rate Debt: Variable Rate Debt affords the City the potential to achieve a lower cost debt depending on market conditions. However, the City will seek to limit the use of Variable Rate Debt due to the potential risks of such instruments.
The City shall consider the use of Variable Rate Debt for the purposes of:
1. Reducing the costs of debt issues.
2. Increasing flexibility for accelerating principal repayment and amortization.
3. Enhancing the management of assets and liabilities (matching short-term “priced debt” with the City’s short-term investments).
4. Diversifying interest rate exposure.
Considerations and Limitations on Variable Rate Debt: The City may consider the use of all alternative structures and modes of Variable Rate Debt to the extent permissible under State law and will make determinations among different types of modes of Variable Rate Debt based on cost, benefit, and risk factors. The Finance Director shall consider the following factors in considering whether to utilize Variable Rate Debt:
1. Any Variable Rate Debt should not exceed twenty percent (20%) of total City General Fund supported debt.
2. Any Variable Rate Debt should be fully hedged by expected future unrestricted General Fund reserve levels.
3. Whether interest cost and market conditions (including the shape of the yield curves and relative value considerations) are unfavorable for issuing fixed rate debt.
4. The likelihood of projected debt service savings when comparing the cost of fixed rate bonds.
5. Costs, implementation and administration are quantified and considered.
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6. Cost and availability of liquidity facilities (lines of credit necessary for Variable Rate Debt obligations and commercial paper in the event that the bonds are not successfully remarketed) are quantified and considered.
7. Ability to convert debt to another mode (daily, monthly, fixed) or redeem at par at any time is permitted.
8. The findings of a thorough risk management assessment.
Risk Management – Variable Rate Debt: Any issuance of Variable Rate Debt shall require a rigorous risk assessment, including, but not limited to factors discussed in this section. Variable Rate Debt subjects the City to additional financial risks (relative to fixed rate bonds), including interest rate risk, tax risk, and certain risks related to providing liquidity for certain types of Variable Rate Debt.
The City will properly manage the risks as follows:
1. Interest Rate Risk and Tax Risk: The risk that market interest rates increase on Variable Rate Debt because of market conditions, changes in taxation of municipal bond interest, or reductions in tax rates. Mitigation – Limit total variable rate exposure per the defined limits and match the variable rate liabilities with short term assets.
2. Liquidity/Remarketing Risk: The risk that holders of variable rate bonds exercise their “put” option, tender their bonds, and the bonds cannot be remarketed requiring the bond liquidity facility provider to repurchase the bonds. This will result in the City paying a higher rate of interest to the facility provider and the potential rapid amortization of the repurchased bonds. Mitigation – Limit total direct variable-rate exposure. Seek liquidity facilities which allow for longer (five to ten years) amortization of any draws on the facility. Secure credit support facilities that result in bond ratings of the highest short-term ratings and long-term ratings not less than AA. If the City’s bonds are downgraded below these levels as a result of the facility provider’s ratings, a replacement provider shall be sought.
3. Liquidity/Rollover Risk: The risk that arises due to the shorter-term of most liquidity provider agreements (one to five years) relative to the longer-term amortization schedule of the City’s variable-rate bonds. In particular, (1) the City may incur higher renewal fees when renewal agreements are negotiated; and (2) the liquidity bank market constricts such that it is difficult to secure third party liquidity at any interest rate. Mitigation – Negotiate longer-terms on provider contracts to minimize the number of rollovers.
Derivatives: The use of certain derivative products to hedge Variable Rate Debt, such as interest rate swaps, may be considered to the extent the City has such debt outstanding or under consideration. The City will exercise extreme caution in the use of derivative instruments for hedging purposes, and will consider their utilization only when sufficient understanding of the products and sufficient expertise for their appropriate use has been developed. A comprehensive derivative policy will be adopted by the City prior to any utilization of such instruments.
Refunding Guidelines
The Finance Director shall monitor, at least annually, all outstanding City debt obligations for potential refinancing opportunities. The City will consider refinancing of outstanding debt to achieve annual savings. Absent a compelling economic reason or financial benefit to the City, any refinancing should not result in any increase to the weighted average life of the refinanced debt.
The City will generally seek to achieve debt service savings which, on a net present value basis, are at least three percent (3%) of the debt being refinanced. The net present value assessment shall factor in all costs, including issuance, escrow, June 15, 2026 Special & Regular CC Mtg Page 154 of 576
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and foregone interest earnings of any contributed funds on hand. Any potential refinancing shall additionally consider whether an alternative refinancing opportunity with higher savings is reasonably expected in the future.
Any potential refinancing executed more than ninety days in advance of the outstanding debt optional call date shall require a higher savings threshold. Consideration of this method of refinancing shall place greater emphasis on determining whether an alternative refinancing opportunity with higher savings is reasonably expected in the future.
Market Communication, Administration, and Reporting
Rating Agency Relations and Annual or Ongoing Surveillance: The Finance Director shall be responsible for maintaining the City's relationships with Standard & Poor's Ratings Services, Fitch Ratings and Moody’s Investor’s Service. The City is committed to maintaining, or improving upon, its existing rating levels. In addition to general communication, the Finance Director shall:
1. Ensure the rating agencies are provided updated financial information of the City as it becomes publically available.
2. Communicate with credit analysts at each agency as often as is requested by the agencies.
3. Prior to each proposed new debt issuance, schedule meetings or conference calls with agency analysts and provide a thorough update on the City’s financial position, including the impacts of the proposed debt issuance.
Continuing Disclosure Compliance: The City shall remain in compliance with Security and Exchange Commission Rule 15c2-12 by filing its annual financial statements and other financial and operating data for the benefit of its bondholders within 270 days of the close of the fiscal year, or as required in any such agreement for any debt issue. The City shall maintain a log or file evidencing that all continuing disclosure filings have been made promptly.
Debt Issue Record-Keeping: A copy of all debt-related records shall be retained at the City’s offices. At minimum, these records shall include all official statements, bond legal documents/transcripts, resolutions, trustee statements, leases, and title reports for each City financing (to the extent available).
Arbitrage Rebate: The use of bond proceeds and their investments must be monitored to ensure compliance with all Internal Revenue Code Arbitrage Rebate Requirements. The Chief Financial Officer shall ensure that all bond proceeds and investments are tracked in a manner which facilitates accurate calculation; and, if a rebate payment is due, such payment is made in a timely manner.
Credit Ratings
The City will consider published ratings agency guidelines regarding best financial practices and guidelines for structuring its capital funding and debt strategies to maintain the highest possible credit ratings consistent with its current operating and capital needs.
Legal Debt Limit
Section 18 of Article XVI of the California Constitution defines the absolute maximum legal debt limit for the City; however, it is not an effective indicator of the City’s affordable debt capacity.
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GENERAL FINANCIAL POLICY
Affordability
Prior to the issuance of debt to finance a project, the City will carefully consider the overall long-term affordability of the proposed debt issuance. The City shall not assume more debt without conducting an objective analysis of the City’s ability to assume and support additional debt service payments. The City will consider its long-term revenue and expenditure trends, the impact on operational flexibility and the overall debt burden on the tax payers. The evaluation process shall include a review of generally accepted measures of affordability and will strive to achieve and or maintain debt levels consistent with its current operating and capital needs. The Finance Director shall review benchmarking results of other California cities of comparable size with the City’s Financial Planning and Budget Subcommittee prior to any significant project financing.
General Fund-Supported Debt: General Fund Supported Debt generally includes Certificates of Participation (COPs) and Lease Revenue Bonds (LRBs) which are lease obligations that are secured by an installment sale or by a lease-back arrangement between the City and another public entity. The general operating revenues of the City are pledged to pay the lease payments, which are, in turn, used to pay debt service on the bonds or Certificates of Participation.
These obligations do not constitute indebtedness under the State constitutional debt limitation and, therefore, are not subject to voter approval.
Payments to be made under valid leases are payable only in the year in which use and occupancy of the leased property is available, and lease payments may not be accelerated. Lease financing requires the fair market rental value of the leased property to be equal to or greater than the required debt service or lease payment schedule. The lessee (City) is obligated to place in its Annual Budget the rental payments that are due and payable during each fiscal year the lessee has use of the leased property.
The City should strive to maintain its net General Fund-backed debt service at or less than eight percent (8%) of available annually budgeted revenue. This ratio is defined as the City’s annual debt service requirements on Certificates of Participation and Lease Revenue Bonds compared to total General Fund Revenues net of interfund transfers. This ratio, which pertains to only General Fund-backed debt, is often referred to as “lease burden.” Revenue Bonds: Long-term obligations payable solely from specific pledged sources, in general, are not subject to a debt limitation. Examples of such long-term obligations include those which achieve the financing or refinancing of projects provided by the issuance of debt instruments that are payable from restricted revenues or user fees (Enterprise Revenues) and revenues generated from a project.
In determining the affordability of proposed revenue bonds, the City will perform an analysis comparing projected annual net revenues (exclusive of depreciation which is a non-cash related expense) to estimated annual debt service. The City should strive to maintain a coverage ratio of one hundred twenty-five percent (125%) using historical and/or projected net revenues to cover annual debt service for bonds. The City may require a rate increase to cover both operations and debt service costs, and create debt service reserve funds to maintain the required coverage ratios.
Special Districts Financing: The City’s Special Districts primarily consist of 1913/1915 Act Assessment Districts (Assessment Districts). The City will consider requests for Special District formation and debt issuance when such requests address a public need or provide a public benefit. Each application will be considered on a case by case basis, and the Finance Department may not recommend a financing if it is determined that the financing could be detrimental to the debt position or the best interests of the City.
June 15, 2026 Special & Regular CC Mtg Page 156 of 576
GENERAL FINANCIAL POLICY