Agenda packet — Sierra Madre City Council, October 14, 2025

CITY COUNCIL

MEETING AGENDA PACKET
Tuesday, October 14, 2025
5:30 pm
Sierra Madre City Council Chambers
232 W. Sierra Madre Boulevard
Sierra Madre, California 91024
Mayor Robert Parkhurst, Mayor Pro Tempore Kristine Lowe Council Members: Edward Garcia, Gene Goss, and Kelly Kriebs

PUBLIC COMMENT
The Council will listen to the public on any item on the agenda. Under the Brown Act, the City Council is prohibited from taking action on items not on the agenda, but the matter may be referred to staff or to a subsequent meeting. Each speaker will be limited to three continuous minutes, which may not be delegated. These rules will be enforced but may be changed by appropriate City Council action.

PUBLIC COMMENT FOR ITEMS ON THE AGENDA:

Persons wishing to speak on closed session items have a choice of doing so either immediately prior to the closed session or at the time for comments on items at the open session.

CLOSED SESSION
CALL TO ORDER/ROLL CALL Mayor Parkhurst, Mayor Pro Tem Lowe, Council Member Garcia, Council Member Goss, and Council Member Kriebs
PUBLIC COMMENT Regarding Closed Session Items
RECESS TO CLOSED SESSION REGARDING:

1. CONFERENCE WITH LABOR NEGOTIATOR
(Gov. Code § 54957.6)
City Negotiator: City Manager Michael Bruckner and Assistant City Manager Miguel Hernandez
Employee Organization: Sierra Madre Professional Firefighters’ Association

2. CONFERENCE WITH LABOR NEGOTIATOR
(Gov. Code § 54957.6)
City Negotiator: City Manager Michael Bruckner and Assistant City Manager Miguel Hernandez
Employee Organization: Sierra Madre Professional Firefighters’ Association

3. CONFERENCE WITH LABOR NEGOTIATOR
(Gov. Code § 54957.6)
City Negotiator: City Manager Michael Bruckner and Assistant City Manager Miguel Hernandez
Employee Organization: Sierra Madre Classified Employees’ Association AGENDA

SPECIAL MEETING

SIERRA MADRE CITY COUNCIL
Tuesday, October 14, 2025
Closed Session 4:30 pm
City Hall Council Chambers
232 W. Sierra Madre Boulevard
Sierra Madre, California 91024
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer
AGENDA

REGULAR MEETING

SIERRA MADRE CITY COUNCIL
Tuesday, October 14, 2025
5:30 pm
City of Sierra Madre
City Council Chambers
232 W. Sierra Madre Boulevard
Sierra Madre, California 91024
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer
The Brown Act provides the public with an opportunity to make public comments at any public meeting; as an alternative, public comment may be made by e-mail to [email protected] by 3:00PM on the day of the meeting. Emails will be acknowledged at the City Council meeting, filed into public record, and scanned onto the City website for public review.

The meeting will be streamed live on the City’s website at sierramadreca.gov , on Foothills Media website at http://www.foothillsmedia.org/sierramadre and broadcast on Government Access Channel 3 (Spectrum)

CODE OF CONDUCT
The purpose of a City Council meeting is to conduct City business. Members of the public that behave in a manner that interrupts or obstructs the City Council’s ability to conduct City business may be asked to leave the meeting. Any and all demonstrations which disrupt, interrupt, or obstruct the City Council’s ability to conduct City business are prohibited. No signs, posters, or other large objects shall be brought into the Council Chambers or other meeting place if doing so would disrupt, disturb, or otherwise impede the orderly course of the meeting.

CALL TO ORDER/ROLL CALL MEMBERS OF THE CITY COUNCIL
Mayor Robert Parkhurst, Mayor Pro Tem Kristine Lowe, Council Member Edward Garcia, Council Member Gene Goss, Council Member Kelly Kriebs

PLEDGE OF ALLEGIANCE AND INSPIRATION
Council Member Garcia

APPROVAL OF MEETING AGENDA
Vote of the City Council to proceed with City business.

REPORT OUT FROM CLOSED SESSION

City Attorney report from the October 14, 2025 Closed Session.

1. CONFERENCE WITH LABOR NEGOTIATOR
(Gov. Code § 54957.6)
City Negotiator: City Manager Michael Bruckner and Assistant City Manager Miguel Hernandez Employee Organization: Sierra Madre Professional Firefighters’ Association

2. CONFERENCE WITH LABOR NEGOTIATOR
(Gov. Code § 54957.6)
City Negotiator: City Manager Michael Bruckner and Assistant City Manager Miguel Hernandez Employee Organization: Sierra Madre Professional Firefighters’ Association

3. CONFERENCE WITH LABOR NEGOTIATOR
(Gov. Code § 54957.6)
City Negotiator: City Manager Michael Bruckner and Assistant City Manager Miguel Hernandez Employee Organization: Sierra Madre Classified Employees’ Association

APPROVAL OF MEETING MINUTES
Approval of September 23, 2025 City Council Regular Meeting minutes.

APPROVAL FOR READING RESOLUTIONS AND ORDINANCES
Vote of the City Council to read all Ordinances and Resolutions by title only and waive reading in full.

MAYOR AND CITY COUNCIL REPORTS
Reporting of Council Members' activities related to City business.

PUBLIC PARTICIPATION CODE OF CONDUCT
The City Council requests that participants refrain from making personal, slanderous, profane, or disruptive remarks. A person who continues to disrupt the orderly conduct of the meeting after being warned by the Mayor or designee to cease the disruption may be precluded from further participation in the meeting. No signs, posters, or other large objects shall be brought into official meeting places if doing so would disrupt, disturb, or otherwise impede the orderly course of the meeting.

PUBLIC COMMENT
The City Council will listen to the public on any item on the agenda. In addition, the City Council will devote time for public comment on items not on the agenda. Addressing the City Council from the audience is not permitted; all comments addressing the Council must be made from the podium. Only public comment made from the podium will be recognized by the City Council and entered into public record.

Providing Public Comment for Items on the Meeting Agenda Persons wishing to speak on any item on the agenda will be called during the comment period at the time the agenda item is brought forward. Persons wishing to speak on closed session items have a choice of doing so either immediately prior to the closed session or at the time for comments on items at the open session.

Provide Public Comment for Topics not on the Meeting Agenda Time shall be devoted to provide public comments for items not on the agenda. Under the Brown Act, the City Council is prohibited from taking action on items not on the agenda.

Providing Public Comment

1. Any person wishing to provide public comment is asked to complete a comment card. Each speaker will be limited to up to three continuous minutes, which may not be delegated or deferred.

2. Comments addressed to the City Council shall occur during the appropriate time on the agenda and should not be construed as an opportunity for dialogue.

PRESENTATION

1. SIERRA MADRE POLICE DEPARTMENT REPORTED BEAR ACTIVITY UPDATE

2. PRESENTATION BY KIMLEY-HORN AND ASSOCIATES FOR GENERAL PLAN UPDATES TO

OPEN SPACE AND CONSERVATION ELEMENTS

ACTION ITEMS
Regardless of staff recommendation on any agenda item, the City Council will consider such matters, including action to approve, conditionally approve, reject, or continue such item.

CONSENT
a) CONSIDERATION OF RESOLUTION 25-56 APPROVING CERTAIN DEMANDS It is recommended that the City Council approve Resolution 25-56 approving payment of City Warrants in the aggregate amount of $457,429.31, Sierra Madre Library Warrants in the aggregate amount of $32,955.16, and Payroll Transfer in the aggregate amount of $642,028.77, for the Fiscal Year ending June 30, 2026.
b) CONSIDERATION OF RESOLUTION 25-57 APPROVING A SETTLEMENT AGREEMENT AND

SPECIFIC RELEASE OF CLAIMS WITH THE SIERRA MADRE PROFESSIONAL FIREFIGHTERS

ASSOCIATION AND INDIVIDUAL CURRENT EMPLOYEE MEMBERS
It is recommended that the City Council adopt Resolution 25-57 approving $37,141.32 in back payments due to the members of the Sierra Madre Professional Firefighters Association (SMPFA or Association) under both the Fair Labor Standards Act (FLSA) and Memorandum of Understanding (MOU) with SMPFA.
c) OTHER POST EMPLOYMENT BENEFITS (OPEB) FUNDING POLICY COMPLIANCE AND FISCAL YEAR 2025-2026 GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT No. 75 ACTUARIAL VALUATION
It is recommended that the City Council receive and file the Fiscal Year 2025-2026 Governmental Accounting Standards Board Statement No. 75 Actuarial Valuation of the Other Post-Employment Benefits Trust, confirming continued compliance with the City's Pension and Other Post-Employment Benefits Funding Policy. d) STRATEGIC PLAN UPDATE
It is recommended that the City Council receive and file this informative report.

PUBLIC HEARINGS

1. ORDINANCE NO. 1486 RELATING TO THE ADOPTION AND AMENDMENTS TO THE 2025 INTERNATIONAL FIRE CODE AND THE 2025 CALIFORNIA FIRE CODE UPDATES It is recommended that the City Council introduce for first reading Ordinance No. 1486 pursuant to the 2025 California Fire Code and 2025 California Wildland Urban Interface Code amendments.

2. ORDINANCE NO. 1487 AMENDING THE MUNICIPAL CODE TO AMEND AND ADOPT BY REFERENCE THE 2025 CALIFORNIA BUILDING STANDARDS CODE WITH CERTAIN

EXCEPTIONS, MODIFICATIONS AND ADDITIONS
It is recommended that the City Council introduce for first reading by title only, recommending adoption of Ordinance No. 1487 pursuant to the 2025 California Building Standards Code amendments.

3. RESOLUTION 25-58 APPROVING AND AUTHORIZING THE CITY’S PARTICIPATION IN

THE PERMANENT LOCAL HOUSING ALLOCATION PROGRAM
It is recommended that the City Council adopt Resolution 25-58 to allocate and authorize the City’s participation in the Year 5 Permanent Local Housing Allocation (PLHA) Program

DISCUSSION

1. REPORT, DISCUSSION, AND DIRECTION REGARDING A MEMORANDUM OF

UNDERSTANDING WITH PUSD FOR CROSSING GUARD SERVICES
It is recommended that the City Council It is recommended that the City Council authorize and direct the City Manager to enter into a memorandum of understanding for a 50/50 cost sharing arrangement with Pasadena Unified School District (PUSD) for crossing guard services.

AVAILABILITY OF AGENDA MATERIALS
Materials related to items on this agenda are available for public inspection on the City’s website at sierramadreca.gov.

LIVE BROADCASTS
Regular City Council meetings are broadcast live on Cable Channel 3 and rebroadcast on Wednesday and Saturday at 5:30 p.m.

MEETING ASSISTANCE
If you require special assistance to participate in this meeting, please call the City Clerk’s office at (626) 355-7135 at least 48 hours prior to the meeting.

ADJOURNMENT
The City Council will adjourn to its Regular Meeting on Tuesday, October 28, 2025.

MINUTES

REGULAR MEETING

SIERRA MADRE CITY COUNCIL
Tuesday, September 23, 2025
5:30 pm
City of Sierra Madre
City Council Chambers
232 W. Sierra Madre Boulevard
Sierra Madre, California 91024
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer
The Brown Act provides the public with an opportunity to make public comments at any public meeting; as an alternative, public comment may be made by e-mail to [email protected] by 3:00PM on the day of the meeting. Emails will be acknowledged at the City Council meeting, filed into public record, and scanned onto the City website for public review.

CALL TO ORDER/ROLL CALL MEMBERS OF THE CITY COUNCIL
Mayor Parkhurst called the meeting to order at 5:31 p.m. City Clerk Aguilar called the roll.

Present: Mayor Robert Parkhurst, Mayor Pro Tem Kristine Lowe, Council Member Edward Garcia, Council Member Gene Goss, and Council Member Kelly Kriebs

Absent: None.

Also Present: Michael Bruckner, City Manager
Aleks Giragosian, City Attorney
Miguel Hernandez, Assistant City Manager
Laura Aguilar, City Clerk
Gustavo Barrientos, Police Chief
Joshua Wolf, Senior Planner
Leila Regan, City Librarian
Arnulfo Yanez, Director of Public Works
James Carlson, Senior Analyst

PLEDGE OF ALLEGIANCE AND INSPIRATION
Mayor Pro Tem Lowe led the audience in the pledge of allegiance. Afterwards she remarked on the Hispanic Heritage Month and provided a brief history of Sierra Madre.

APPROVAL OF MEETING AGENDA
Vote of the City Council to proceed with City business.

Mayor Parkhurst asked for a motion to amend the agenda or approve as presented.

Council Member Goss made a motion to approve the agenda as presented.

Mayor Pro Tem Lowe seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

The motion to approve the agenda as presented was approved by a unanimous voice vote by all Members present.

REPORT OUT FROM CLOSED SESSION
City Attorney report from the Closed Session.
1) Conference with Legal Counsel; Existing Litigation (Gov. Code 54956.9)(d)(1)) City of Sierra Madre v. Edison International et al. Case No. 25STCV06283 Council Member Kriebs recused herself from the discussion and vote, citing a work conflict.

City Attorney Giragosian reported that Council Member Garcia made a motion to execute a conflict waiver.

Council Member Goss seconded the motion.

The motion was put to Council for a vote and was approved 4-0-1 by all Members present. 2) Conference with Legal Counsel; Existing Litigation (Gov. Code 54956.9)(d)(1)) Protect Sierra Madre v. City of Sierra Madre et al. LA County Case No. 24STCP01652 City Attorney Giragosian reported that the City Council received an update; and no reportable action was taken.
3) Conference with Legal Counsel; Existing Litigation (Gov. Code 54956.9)(d)(1)) City of Sierra Madre v. META Platforms, Inc. et al. LA County Case No. 24STCV04913 Council Member Kriebs recused herself from the discussion, citing a work conflict.

City Attorney Giragosian reported that the City Council received an update; and no reportable action was taken.
4) Conference with Legal Counsel; Initiation of Litigation (Gov. Code 54956.9)(d)(4)) Number of Potential Cases: 1
City Attorney Giragosian reported that the City Council received an update. No reportable action was taken.

APPROVAL OF MEETING MINUTES
Approval of September 9, 2025 City Council Regular Meeting minutes.

Mayor Parkhurst sent an e-mail to the City Clerk’s Office in advance of the City Council meeting, requesting the following amendments to the September 9, 2025 minutes:
x “At the conclusion of Council’s reports, Mayor Parkhurst opened the forum for public comment on items not on the agenda. City Clerk Aguilar announced that no speaker cards or e-mails had been submitted for items not on the agenda.” Then on page 4 we have 8 people who spoke on items not on the agenda. I think we need to delete the above two sentences. x Under Presentation, there are incomplete sentences for the presentation on the library and from SCE.
x Water Efficient Landscaping Ordinance – There is an extra semi-colon in the report:

Mayor Parkhurst asked for any additional amendments. Hearing none, he asked for a motion regarding the September 9, 2025 Regular Meeting minutes.

Mayor Pro Tem Lowe made a motion to approve the September 9, 2025 Regular Meeting minutes as amended.

Council Member Garcia seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

The motion to approve the meeting minutes as amended was approved by a unanimous voice vote by all Members present.

Mayor Parkhurst then continued the meeting to discuss the reading of resolutions and ordinances.

APPROVAL FOR READING RESOLUTIONS AND ORDINANCES
Vote of the City Council to read all Ordinances and Resolutions by title only and waive reading in full.

Mayor Parkhurst asked for a motion.

Council Member Kriebs made a motion to approve the reading of ordinances and resolutions by title only.

Mayor Pro Tem Lowe seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

The motion to approve the reading of ordinances and resolutions by title only was approved by a unanimous voice vote by all Members present.

MAYOR AND CITY COUNCIL REPORTS
Reporting of Council Members' activities related to City business.

Council Member Kriebs
Attended the Community Services Commission meeting. Staff presented reports on the summer events and announced the upcoming fall events.

Council Member Goss
Attended the September 16 Library Ad-Hoc Committee meeting. He shared that much progress was reported and the Library is beginning to take shape.

On October 18 he attended a meeting with the San Gabriel Valley Council of Governments. At that meeting there was a presentation from Metro on the creation of a police department. The new chief was there and took questions from the audience.

Council Member Goss also reported that he attended the Planning Commission meeting. The Commission discussed a signage policy.

Council Member Garcia
Reported that he attended the September 11 Remembrance ceremony at the Sierra Madre Fire Department.

He also reported that he attended a meeting of the Ad Hoc Revenue Committee meeting; City Manager Bruckner gave a detailed presentation on the City’s budget, including a history of the budget and revenues and expenditures.

Mayor Pro Tem Lowe
Reported that she attended a meeting on September 9, 2025 on Building Fire Adapted Communities, put on by the Institution by Local Government. They discussed how fire science has changed.

On September 11 she attended the 9/11 Remembrance ceremony at the Sierra Madre Fire Station.

On September 20 she attended the first Latino Heritage Fiesta; on September 22 she attended a meeting of the Library Board of Trustees.

Mayor Pro Tem Lowe also announced that the Library Foundation has raised $40,000 for Furniture, Fixtures, and Equipment (FF&E).

Mayor Parkhurst
Reported that he attended the 9/11 Remembrance Memorial service at Sierra Madre Fire Department.

Mayor Parkhurst also reported that he attended the Revenue Committee Ad-Hoc meeting on September 11, 2025.

On September 15 he attended briefly the Community Services Commission meeting. There were two presentations from Eagle Scouts on their projects at Mt. Wilson Trail Park.

The September 17 Natural Resources Commission meeting was cancelled and rescheduled to October 1, 2025.

On October 20, Mayor Parkhurst attended the Celebration of the Young Child at Brookside Park in Pasadena. He was invited to attend by Pasadena’s Mayor Victor Gordo.

On October 20 Mayor Parkhurst attended the first Latino Heritage Festival.

He also shared that he attended meetings with the Clean Power Alliance. He reported that the Clean Power Alliance discussed Request for Offers for Clean Power.

Providing Public Comment

1. Any person wishing to provide public comment is asked to complete a comment card. Each speaker will be limited to up to three continuous minutes, which may not be delegated or deferred.

2. Comments addressed to the City Council shall occur during the appropriate time on the agenda and should not be construed as an opportunity for dialogue.

Mayor Parkhurst opened the podium for public comment on items not on the agenda. City Clerk Aguilar announced that one e-mail was received for items not on the agenda from Ashley Bonenfant.

Aguilar announced that five speaker cards had been submitted for items not on the agenda.

1. Marcia Bender: asked three questions: 1) what is the procedure for the public to place an item on the City Council meeting agenda; 2) Does Sierra Madre have a cap on rental rate increases; 3) Would like an explanation of the California Tax Credit Allocation.

2. Leslie Ziff, 229 N. Baldwin Avenue: announced the Charlie Bell Memorial service at Mt.

Wilson Trail Park on October 11, 2025 at 10:00 am; and announced the December 6, 2025 as the date for this years Winter Village

3. Pat Alcorn, read the Eaton Fire After Action Report. Expressed her support for a citywide public preparedness campaign

4. Leila Regan, City Librarian, announced upcoming Library events and spoke on Banned Books Week from October 5 through October 11

5. Fire Chief Bartlett shared that the draft Hazard Mitigation Plan is now available for public review.

Seeing no one else come forward, Mayor Parkhurst closed public comment and moved on to presentations.

IN MEMORIAM

1. DAVID LOERA, passed away August 16, 2025

2. MARIE SULLIVAN, passed away August 21, 2025

3. CHARLIE BELL, passed away September 4, 2025

PRESENTATION

1. UPDATE FROM SOUTHERN CALIFORNIA EDISON
Southern California Edison Government Relations Manager Connie Turner

2. SIERRA MADRE POLICE DEPARTMENT REPORTED BEAR ACTIVITY UPDATE Police Chief Barrientos provided the City Council with an update on local bear intrusions and bear-related calls for service.

At the conclusion of the presentations, Mayor Parkhurst moved onto Action Items. City Clerk Aguilar read the following reports:

ACTION ITEMS
Regardless of staff recommendation on any agenda item, the City Council will consider such matters, including action to approve, conditionally approve, reject, or continue such item.

CONSENT
a) RESOLUTION 25-53 APPROVING CERTAIN DEMANDS
It is recommended that the City Council adopt Resolution 25-53 approving payment of City Warrants in the aggregate amount of $940,952.55, Sierra Madre Library Warrants in the aggregate amount of $665,250.76, and Payroll Transfer in the aggregate amount of $579,915.11, for the Fiscal Year ending June 30, 2026. b) TRANSMITTAL OF THE FISCAL YEAR 2025-2026 BUDGET BOOK It is recommended that the City Council receive and file this informative report. c) RESOLUTION 25-54 AMENDING THE FISCAL YEAR 2025-26 ADMINISTRATION INTERNAL

SERVICE FUND BUDGET AUTHORIZING A SUPPLEMENTAL APPRORPRIATION TO THE FINANCE DEPARTMENT IN THE AMOUNT OF $58,000 OFFSET BY A REDUCTION IN THE

ADMINISTRATION INTERNAL SERVICE FUND BALANCE FOR FINANCIAL POLICY ADVISORY SERVICES; AND PROFESSIONAL SERVICES AGREEMENT WITH HUE C. QUACH

FOR FINANCIAL POLICY AND PROCEDURE DEVELOPMENT IN AN AMOUNT NOT TO EXCEED $58,000
It is recommended that the City Council adopt Resolution 25-54 and approve a Professional Services Agreement with Hue C. Quach in an amount not to exceed $58,000.
d) PROFESSIONAL SERVICES AGREEMENT WITH KIMLEY-HORN AND ASSOCIATES, INC. FOR

GENERAL PLAN UPDATES TO OPEN SPACE AND CONSERVATION ELEMENTS IN AN AMOUNT NOT TO EXCEED $155,000
It is recommended that the City Council approve the Professional Services Agreement with Kimley-Horn and Associates, Inc. in an amount not to exceed $155,000; and authorize the City Manager to execute the agreement in a form acceptable to the City Attorney.
e) ORDINANCE No. 1467 AMENDING CHAPTER 9.32 (NOISE) OF TITLE 9 (PUBLIC PEACE, MORALS AND WELFARE) AND CHAPTER 8.40 (LANDSCAPING EQUIPMENT) OF TITLE 8 (HEALTH AND SAFETY) OF THE SIERRA MADRE

MUNICIPAL CODE
It is recommended the City Council conduct its second reading and adopt Ordinance No. 1467 adopting amendments to Chapter 9.32 (Noise) of Title 9 (Public Peace, Morals and Welfare) and Chapter 8.40 (Landscaping Equipment) of Title 8 (Health and Safety) of the Sierra Madre Municipal Code.
f) RESOLUTION 25-55 REGARDING THE NEW NATIONAL OPIOIDS SETTLEMENT It is recommended that the City Council adopt Resolution 25-55 authorizing the City to participate in the National Opioids settlements with Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus.
g) PARTICIPATION IN SOUTHERN CALIFORNIA EDISON’S (SCE) LS-1 OPTION “E”

STREETLIGHT CONVERSION PROGRAM
It is recommended that the City Council approve participation in Southern California Edison’s ls-1 Option “E” Streetlight Conversion Program; and authorize the City Manager to execute the agreements on behalf of the City.

At the conclusion of City Clerk Aguilar’s report, Mayor Parkhurst brought the matter to the City Council for questions then opened the topic for public comment. City Clerk Aguilar noted for the record that no e-mails had been received prior to the City Council meeting.

Seeing no one come forward, Mayor Parkhurst closed Public Comment and brought the discussion back to Council.

Council Member Garcia asked a question with regards to Consent Item C and whether or not the proposed Professional Services Agreement sufficiently addressed the Consultant’s participation in CalPERS. City Attorney offered to replace the proposed Professional Services Agreement with an agreement that addressed any conflicts of interest with Cal-PERS.

Mayor Parkhurst asked the Council for a motion.

Council Member Garcia made a motion to approve Consent A-G with an amendment to the Professional Services Agreement in Consent C.

Mayor Pro Tem Lowe seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

Consent Items Consent A-G were approved as amended by majority voice vote.

DISCUSSION

1. REPORT, DISCUSSION, AND DIRECTION ON SCHOOL PEDESTRIAN SAFETY

ENHANCEMENTS
It is recommended that the City Council receive this report and provide direction on next steps to improve traffic and pedestrian safety near Sierra Madre Elementary School, particularly at the intersection of Highland Avenue and Auburn Avenue.

At the conclusion Director Yanez’s report, Mayor Parkhurst invited Police Chief to present on law enforcement and public safety options.

At the conclusion of the reports, Mayor Parkhurst brought the matter to the City Council for questions then opened the topic for public comment. City Clerk Aguilar noted for the record that one e-mail had been received prior to the City Council meeting from Ashley Bonenfant.

Seeing no one come forward, Mayor Parkhurst closed Public Comment and brought the discussion back to Council. The City Council discussed the report, choosing to make motions on the separate topics.

Council Member Goss made a motion to approve the Public Works projects for repainting crosswalks, school zone signage, LED stop sign replacements, and In-road pedestrian signs.

Council Member Garcia seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

The motion to approve the four listed Public Works projects was approved by a unanimous voice vote by all members present.

Mayor Parkhurst continued the meeting to the next discussion item in the report.

Council Member Goss made a motion to direct the City Manager to obtain quotes for a dedicated police motorcycle and return to a future Council meeting for consideration.

Council Member Kriebs seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

Mayor Parkhurst then brought the discussion to Council for the matter of crossing guards and exploring a collaborative partnership with Pasadena Unified School District. The City Council provided direction to the City Manager to meet with Pasadena Unified School District representatives to discuss options for addressing student and pedestrian safety issues.

2. REPORT, DISCUSSION, AND DIRECTION REGARDING THE DOWNTOWN

PARKING ENFORCEMENT PILOT PROGRAM
It is recommended that the City Council receive the report and provide direction to staff.

Police Sergeant Cadzow presented the report to the City Council.

At the conclusion of Sergent Cadzow’s report, Mayor Parkhurst opened the topic for public comment.

City Clerk Aguilar noted for the record that two e-mails had been received from Ashley Bonenfant and Ali Everett, respectively, prior to the City Council meeting. One speaker card was received from:

Ron Brandly, 145 S. Lima Street, was not supportive of the pilot program Seeing no one else come forward, Mayor Parkhurst closed Public Comment and brought the discussion back to Council. The City Council continued their discussion. Hearing no additional discussion from the City Council, Mayor Parkhurst asked for a motion.

Council Member Goss made a motion to authorize the City Manager to do a study, and allocate Business Assessment District funds to cover the cost of the study.

Council Member Kriebs seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

The motion carried by unanimous voice vote.

Mayor Parkhurst continued the meeting to the next discussion item.

3. REPORT, DISCUSSION, AND DIRECTION REGARDING THE REPLACEMENT

OF THE CITY HALL/PUBLIC SAFETY BUILDING EMERGENCY POWER

GENERATOR
It is recommended that the City Council receive the report and provide direction to staff.

Public Works Director Yanez presented the report to the City Council. At the conclusion of Director Yanez’s report, Mayor Parkhurst brought the matter to the City Council for discussion.

Mayor Parkhurst opened the topic for public comment. City Clerk Aguilar noted for the record that no e-mails had been received. Hearing this, Mayor Parkhurst opened the podium for public comment.

Seeing no one come forward, Mayor Parkhurst closed Public Comment and brought the discussion back to Council. The City Council continued their discussion. Hearing no additional discussion from the City Council, Mayor Parkhurst asked for a motion.

Council Member Goss made a motion to acquire a tier-4 generator Mayor Pro Tem Lowe seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: Mayor Parkhurst

Absent: None.

Abstain: None.

The motion carried by a vote of 4-1-0-0
Mayor Parkhurst continued the meeting to the next discussion item.

4. REPORT, DISCUSSION, AND DIRECTION REGARDING THE FORMATION OF A

MAJOR SPORTING EVENTS AD HOC COMMITTEE
It is recommended that the City Council receive the report and provide direction to staff on the creation of a Major Events Ad Hoc Committee and potential changes to the City’s short-term rental ordinances.

Community Services Supervisor Tegart presented the report to the City Council.

At the conclusion of Supervisor Tegart report, Mayor Parkhurst opened the topic for public comment.

City Clerk Aguilar noted for the record that one e-mail had been received from Rachelle Arizmendi prior to the City Council meeting.

Seeing no one come forward, Mayor Parkhurst closed Public Comment and brought the discussion back to Council. The City Council discussed the creation of an add-hoc committee, with appointments by the City Manager. The discussion included appointing Council Member Kriebs as a liaison to the Committee. Hearing no additional discussion from the City Council, Mayor Parkhurst asked for a motion.

Council Member Kriebs moved to empower the City Manager to create a sporting events ad-hoc committee
Mayor Pro Tem Lowe seconded the motion.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss and Kriebs Noes: None.

Absent: None.

Abstain: None.

The motion carried by unanimous voice vote.

Mayor Parkhurst continued the meeting, asking Council if they would like to add any items to future meetings.

FUTURE ITEMS
Mayor Parkhurst: a transportation strategy
Council Member Kriebs: asked for an update on the Transportation Sub-Committee and their work on the Dial-A-Ride and Gateway Coach.

Hearing no other requests from Council, Mayor Parkhurst asked for a motion to adjourn the meeting.

Council Member made a Goss motion to adjourn the meeting.

Council Member Garcia seconded the motion to adjourn.

Mayor Parkhurst called for a vote of the Council:

Ayes: Mayor Parkhurst, Mayor Pro Tem Lowe, Council Members Garcia, Goss, and Kriebs Noes: None.

Absent: None.

Abstain: None.

The motion to adjourn the meeting to the next Regular meeting on October 14, 2025 at this same location was approved by all Members at 8:55 pm.

Minutes taken and typed by: Approved by Council Action:
_____________________ _______________________________
Laura M. Aguilar Robert Parkhurst
City Clerk Mayor

AVAILABILITY OF AGENDA MATERIALS
Materials related to items on this agenda are available for public inspection on the City’s website at sierramadreca.gov.

LIVE BROADCASTS
Regular City Council meetings are broadcast live on Cable Channel 3 and rebroadcast on Wednesday and Saturday at 5:30 p.m.

MEETING ASSISTANCE
If you require special assistance to participate in this meeting, please call the City Clerk’s office at (626) 355-7135 at least 48 hours prior to the meeting.

ADJOURNMENT: The City Council will adjourn to its Regular Meeting on Tuesday, October 14, 2025.

413253.1

TO: Mayor and City Council
FROM: Miguel Hernandez, Assistant City Manager
REVIEWED BY: Michael Bruckner, City Manager
DATE: October 14, 2025
SUBJECT: Fire Personnel FLSA Overtime Discrepancy Adjustment

STAFF RECOMMENDATION
Staff recommends the City Council adopt Resolution 25-57 approving $37,141.32 in back payments due to the members of the Sierra Madre Professional Firefighters Association (SMPFA or Association) under both the Fair Labor Standards Act (FLSA) and Memorandum of Understanding (MOU) with SMPFA.

ALTERNATIVES

1. Adopt Resolution 25-57;

2. Do not adopt Resolution 25-57;

3. Continue the item and provide further direction to staff.

EXECUTIVE SUMMARY
In January 2024, the City was made aware of potential overtime underpayments, due to the City excluding certain “add pays” (additional forms of compensation) when calculating the overtime rate of pay for SMPFA members. The City conducted an internal audit that indicated certain add pays were not being included in calculating overtime payments for one or more SMPFA members.

ANALYSIS
The Fair Labor Standards Act (FLSA) mandates that overtime compensation be paid for work performed in excess of established maximum hours within a designated work period. In January 2024, the City identified a potential discrepancy in the calculation of overtime for sworn Fire Department personnel related to FLSA reporting requirements. As a public agency, the City is subject to the overtime provisions of the FLSA (29 U.S.C. § 201 et seq.), and members of the Fire Department are entitled to overtime compensation consistent with 29 U.S.C. § 207, as well City of Sierra Madre

AGENDA REPORT
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer

413253.1
as the provisions outlined in the Memorandum of Understanding (MOU) between the City and the Sierra Madre Professional Firefighters Association (SMPFA).

Under the FLSA, employers must include all forms of remuneration for employment when determining the regular rate of pay used to calculate overtime, except where specifically excluded by law. The “regular rate” encompasses various types of nondiscretionary bonuses and incentive compensation, as defined in 29 CFR Part 778.

Following notification of the potential issue, the City conducted an internal audit to evaluate compliance and identify any miscalculations. The review determined that several forms of additional compensation had been inadvertently excluded from the FLSA overtime rate, even though they are compensable under both the FLSA and the applicable MOU. These pay categories include:
x Medical Stipend (MOU, Article 9, Section 2)
x Good Driving Incentive (MOU, Article 16, Section 1)
x Qualified Engineer Bonus (MOU, Article 16, Section 2) x Longevity Pay (MOU, Article 16, Section 3)
x Additional Assignments and Pay (MOU, Article 16, Section 4) x Foreign Language Bonus (MOU, Article 16, Section 6)
The City and the Association met and conferred to implement necessary adjustments to the City’s overtime calculation process going forward. Both parties also discussed measures to ensure ongoing compliance and prevent similar discrepancies in the future. Following a comprehensive review, it was determined that the total overtime compensation owed to affected employees is $37,141.32. The City and the Association concur that this amount reflects a fair and accurate calculation of back pay owed under the provisions of the FLSA and the terms of the MOU.

This resolution applies solely to current employees. Staff will return at a future City Council meeting with a separate resolution to address and correct FLSA discrepancies for former Fire Department members.

ENVIRONMENTAL (CEQA)
This resolution does not constitute a “project” under the California Environmental Quality Act (CEQA), pursuant to Section 15378(b)(4) of the CEQA Guidelines, as it involves organizational and administrative activities of government that will not result in any direct or indirect physical changes to the environment.

STRATEGIC PLAN CORRELATION
This item supports:

Goal 2: Public Safety
Objective 2.1: Sustaining Sierra Madre’s Fire Services.

Initiative 2.1.1: Fire services sustainment (staffing, licensure, equipment, Emergency Medical Services (EMS), preparedness).

413253.1

PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. Copies of this report can be accessed on the City’s website at www.sierramadreca.gov.

FISCAL IMPACT
This action will result in a General Fund budget impact of $37,141.32 in Fiscal Year 2025-26.

The expense will be recognized within the salaries and benefits category of organizational segment 61000, which is dedicated to Fire Suppression.

ATTACHMENTS:

A. Agreement
B. Resolution 25-57

12589249.1 SI020-082

SETTLEMENT AGREEMENT AND SPECIFIC RELEASE OF CLAIMS
This Settlement Agreement and Specific General Release of Claims (“Agreement”) is made and entered into by and between the City of Sierra Madre (“City”), the Sierra Madre Professional Firefighters Association (“Association”), and the individual current employee members (“Member” or “Members”) receiving Settlement Payments as defined herein. The City, Association, and Members may be individually referred to herein as “Party” and collectively referred to as “Parties.”

RECITALS
A. WHEREAS, Members are presently employed by the City; and B. WHEREAS, the City is subject to the overtime requirements of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. section 201 et seq. and Members are entitled to overtime compensation pursuant to 29 U.S.C. § 207 of the FLSA and in accordance with the overtime provisions of the Memorandum of Understanding (“MOU”) between the City and the Association; and
C. WHEREAS, in January 2024 the City was alerted to potential overtime underpayments, due to the City excluding certain add pays when calculating the overtime rate of pay, for one or more Members; and
D. WHEREAS, the City conducted an internal audit and identified the following add pays or hour codes which were not included in calculating FLSA and/or MOU overtime payments for one or more Member: (i) Medical Stipend, MOU Article 9 Section 2, (ii) Good Driving Incentive, MOU Article 16 Section 1, (iii) Qualified Engineer Bonus, MOU Article 16 Section 2, (iv) Longevity Pay, MOU Article 16 Section 3, (v) Additional Assignments and Pay, MOU Article 16 Section 4, and (vi) Foreign Language Bonus, MOU Article 16 Section 6 (these add pays shall be referred to collectively as “Add Pays”); and E. WHEREAS, the City and Association met and conferred on implementation of changes to the City’s overtime calculations going forward, and also discussed possible resolution of the issues raised in Sections B through D above; and F. WHEREAS, via arms-length negotiations, the Parties have agreed to resolve any potential FLSA and MOU claims that Members may have against the City for unpaid overtime compensation resulting from the City’s calculation of the Members’ regular rates of pay, as set forth hereinabove, in order to avoid the potential uncertainty, expense and delay of litigation, grievances, and/or other administrative hearing; and
G. WHEREAS, the Parties agree that the City has undertaken a fair and reasonable calculation of the backpay amounts owed to Members under the FLSA and the MOU; and 12589249.1 SI020-082
H. WHEREAS, the Parties agree that the City’s calculation of the overtime liability as set forth below does not subvert the FLSA and/or MOU, and is consistent with and within the range of reasonable results that Members might expect to obtain at trial or in a contested hearing; and
I. WHEREAS, as a result of their negotiations, the Parties desire a settlement that is full and complete, resolving all current and potential grievances, disputes, controversies, claims and possible actions between them arising out of this dispute.

NOW, THEREFORE, in consideration of the mutual promises and undertakings of the Parties as set forth below, the Parties hereby agree as follows:

Section I. Settlement Payment
A. Settlement. The City shall pay a combined total to Members of $37,141.32 (“Settlement Amount”), which shall be allocated among the individual Members as set forth in Addendum A, and incorporated herein by reference. The Settlement Amount consists of the following:

1. Recalculated Overtime Pay. Although the Parties dispute the extent of the City’s back pay liability to Members under the FLSA and the MOU, for purposes of this Agreement, the City has recalculated the regular rate of pay used to calculate overtime payments for each impacted Member, and will pay to each Member the difference between the overtime compensation already received and the recalculated overtime compensation, minus all applicable state, federal and local taxes and other payroll deductions, for overtime worked during the period of January 23, 2021 through September 18, 2024 (the “Recovery Period”) as follows: the City has recalculated the regular rate of pay for each Member who performed overtime and who received any of the following add pays or hours codes (i) Medical Stipend, MOU Article 9 Section 2, (ii) Good Driving Incentive, MOU Article 16 Section 1, (iii) Qualified Engineer Bonus, MOU Article 16 Section 2, (iv) Longevity Pay, MOU Article 16 Section 3, (v) Additional Assignments and Pay, MOU Article 16 Section 4, and (vi) Foreign Language Bonus, MOU Article 16 Section 6 (“Add Pays”) at any time during the Recovery Period; and

2. Settlement Calculation Methodology. For the purposes of this settlement, the Parties agree that in determining the amount of back overtime compensation owed pursuant to this settlement, the City has identified each pay period in the Recovery Period that Members received overtime and recalculated the overtime by including the omitted Add Pays and using the agreedupon calculation method of a 182-hour divisor for the overtime regular rate of pay.

B. Separate Checks. The City will issue separate checks to each Member for their respective portion of the Settlement Amount (“Settlement Payments”) as soon as administratively possible, and within thirty (30) calendar days of either the City Council’s approval of this Agreement or the date of the last signature to this Agreement, whichever is later.

Members acknowledge that the Settlement Payments are for unpaid wages and subject to normal 12589249.1 SI020-082
payroll tax withholdings. By executing this Agreement and accepting the payments specified herein, each Member expressly waives his or her individual claims, as set forth in Section II.A below, including but not limited to any claims for back pay, liquidated damages, interest, and attorneys’ fees and costs under the FLSA and the MOU, or any other legal basis or theory, concerning non-inclusion of the Add Pays for the Recovery Period.

C. Bona Fide Dispute. The Parties agree that the payments required by this Agreement resolve a “bona fide dispute” over the amount of back pay owed to Members for overtime compensation required by the FLSA and/or the MOU for the Recovery Period.

Specifically, the Parties are settling a dispute regarding the type and amount of “remuneration” to be included in the calculation of the FLSA and MOU regular rate of pay and the resulting overtime payments owed to the affected Members. The Settlement Payments are paid in consideration for the resolution of that dispute.

D. No Tax Advice. Association and its Members acknowledge and agree that the City is not providing any tax or legal advice, and makes no representations regarding tax obligations or consequences, if any, related to this Agreement. Members are encouraged to consult with a tax advisor or attorney of their choice to independently determine any federal, state or local tax consequences of Settlement Payments. Association and its Members further agree that each Member shall assume any tax obligations or consequences that may arise from receipt of a Settlement Payment under this Agreement.

E. Payment Inclusive. The amount described in paragraphs I.A above shall be inclusive of all remedies, damages and/or other relief recoverable or potentially recoverable during the Recovery Period.

F. Signature and Acknowledgment. Payment of the Settlement Payments listed in section I.A above, shall occur as soon as administratively possible, and within thirty (30) days of the City Council’s approval of this Agreement or the date of the last signature to this Agreement or the date the affected Member’s signature on the Individual Signature Page (attached as Addendum B), whichever is later. Each Member will be issued a check for that Member’s corresponding settlement amount on the condition that the Member completes and returns the respective Individual Signature Page to evidence the Member’s acknowledgment of and agreement with this Agreement.

G. Reasonable and Fair. Members, and each of them, expressly agree that the allocation of the Settlement Amount, as provided herein, is fair, just, reasonable, and acceptable to them.

Section II. Release of Claims
A. Release of Claims. Association and its Members, and each of them, hereby release, waive and discharge the City from any and all claims that the City has incorrectly calculated Members’ overtime by failing to include Add Pays received by Members when 12589249.1 SI020-082
calculating the Members’ applicable regular rate of pay and therefore failed to compensate Members properly for overtime in accordance with the FLSA and MOU (“Release”). This Release shall include claims for liquidated damages and interest, attorneys’ fees and costs through the Recovery Period, but shall not include any claims for workers’ compensation benefits, disability benefit, or claims or entitlements to compensation arising after September 18, 2024, or unrelated to this dispute over these identified Add Pays. Members also acknowledge and agree that this Release is an essential and material term of this Agreement and without such Release, no settlement would have been reached by the Parties. Association and City acknowledge that the Association cannot waive on behalf of its Members their individual rights under the FLSA. As consideration for receiving payments pursuant to this Agreement, each Member shall sign an Individual Signature Page attached to this Agreement and incorporated herein by reference, acknowledging waiver or release of his/her/their individual claims under the FLSA for the Recovery Period.

Section III. General Provisions
A. Knowledge of the Parties. The Parties respectively understand and agree to the settlement, this Agreement, and the terms and conditions contained herein, and enter into this Agreement knowingly and voluntarily. Members, and each of them, have been advised that they have the right to, and are encouraged to, seek legal advice from an attorney of their choice with respect to this Agreement, including the Release. By signing this document and the documents referred to herein, the Parties signify their full understanding, agreement, and acceptance of the Agreement.

B. Entire Agreement. This Agreement contains the entire agreement of the Parties regarding the subject matter of this Agreement and shall constitute the final understanding between the Parties hereto. All prior negotiations made or which have occurred prior to the date of this Agreement are merged into this Agreement.

C. No Additional Representations. Except for the terms of this Agreement, the Parties, respectively, have not relied upon any statement or representation, written or oral, made by any Party, or any of their respective agents, attorneys or any other person, regarding any matter including, but not limited to, the federal or state income tax consequences of the Agreement to any Party. The Parties expressly acknowledge and agree that the only advice they have relied upon, if any, is the advice of their own attorneys and/or accountants as to the tax and benefit consequences of the Agreement.

D. Warranty of Non-Assignment. The parties warrant that they have not assigned any of the claims or portions of the claims that are the subject of this Agreement.

E. Binding Agreement. The Agreement and all documents referred to herein, shall bind and inure to the benefit of and each of the Parties hereto and their spouses, domestic partners, children, heirs, estates, administrators, representatives, executors, attorneys’ successors and assigns. Except as expressly provided herein, this Agreement is not for the benefit of any person not a Party hereto or any person or entity not specifically identified as a beneficiary 12589249.1 SI020-082
herein or specifically identified herein as a person or entity released hereby. The Agreement is not intended to constitute a third party beneficiary contract.

F. Authority to Execute. Each Party hereto warrants to the other Party or Parties that he, she, or it has the full power and authority to execute, deliver and perform under this Agreement and all documents referred to herein, and that any needed consent or approval from any other person has been obtained.

G. Effectuate Agreement. Each Party hereto agrees to do all things and execute and deliver all instruments and documents necessary to fulfill and effect the provisions of this Agreement and to protect the respective rights of the Parties to this Agreement.

H. Duty to Act in Good Faith. The Parties shall act in good faith and use their reasonable good faith efforts after the execution of this Agreement to ensure that their respective obligations hereunder are fully and punctually performed. The parties shall promptly perform any further acts and execute and deliver any other documents or instruments that may be reasonably necessary to carry out the provisions of this Agreement.

I. Attorneys’ Fees and Costs. The Parties, including each Member, shall bear their own attorneys’ fees and costs associated with the drafting, review, and execution of this Agreement and the Individual Signature Pages.

J. Interpretation and Construction. Any ambiguities or uncertainties herein shall be equally and fairly interpreted and construed without reference to the identity of the Party or Parties preparing this document or the documents referred to herein, on the understanding that the Parties participated equally in the negotiation and preparation of the Agreement, or have had equal opportunity to do so. The headings used herein are for reference only and shall not affect the construction of this Agreement.

K. Governing Law and Venue. This Agreement shall be deemed to have been executed in Los Angeles County. The settlement, this Agreement, and the documents referred to herein, shall be interpreted in accordance with the laws of the State of California and applicable federal law. Venue for all litigation relative to the formation, interpretation and performance of this Agreement shall be in Los Angeles County, California.

L. Breach, Waiver, and Amendment. No breach of this Agreement or of any provision herein can be waived except by an express written waiver executed by the Party waiving such breach. Waiver of any one breach shall not be deemed a waiver of any other breach of the same or other provisions of this Agreement. The Agreement may be amended, altered, modified or otherwise changed in any respect or particular only by a writing duly executed by the Parties hereto or their authorized representatives.

M. Execution. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. A photocopy, PDF, or facsimile transmission of the Agreement, including 12589249.1 SI020-082
signatures, shall be deemed an original and shall constitute evidence of the Agreement having been executed.

N. Agreement Does Not Establish Precedent. The Parties agree that the terms of this Agreement are binding and will not establish any precedent, nor will this Agreement be used as a basis by the Parties or anyone else to seek or justify similar terms in any subsequent matter.

O. Effective Date. This Agreement shall become effective upon the City Council’s approval of this Agreement or the date of the last signature to this Agreement, whichever is later. 12589249.1 SI020-082
IN WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement and Release.

FOR THE CITY OF SIERRA MADRE
X
Michael Bruckner
City Manager
____________________________
Date

FOR THE SIERRA MADRE PROFESSIONAL

PROFESSIONAL FIREFIGHTERS ASSOCIATION
X
David Gacad
SMPFA President
________________________________
Date
12589249.1 SI020-082

ADDENDUM A
EE# OT Due to EE
1 $1,805.52
2 $1,744.53
3 $583.36
4 $2,477.09
5 $6,062.33
6 $1,230.48
7 $2,197.98
8 $1,922.91
9 $1,821.89
10 $6,407.51
11 $10,032.47
12 $377.85
13 $477.40
TOTAL $37,141.32
12589249.1 SI020-082

ADDENDUM B

INDIVIDUAL SIGNATURE PAGE
Acknowledgement and Acceptance of the Settlement Agreement I, _____________________________, by signing below, hereby acknowledge that I have carefully read the Settlement Agreement and Release (“Agreement”) between the City of Sierra Madre (“City”), the Sierra Madre Professional Firefighters Association (“Association”), and other Association members, including myself, concerning claims to overtime payments for the period of January 23, 2021 through September 18, 2024. I further acknowledge that I understand and agree to the terms and conditions contained in the Agreement, as set forth in the preceding __ pages, in exchange for the payments described both below and in Addendum A to the Agreement. I acknowledge that the only promises made to induce me to sign this Agreement are those stated herein.

By signing below, I agree and acknowledge that the sum paid to me by the City in the gross amount of $_________________, minus all applicable federal, state and local tax and other applicable payroll deductions, constitutes payment in full for the City’s alleged miscalculation of my overtime by failing to include in my regular rate of pay, as applicable, one or more of six specified add pays, through September 18, 2024.

By signing below, I further agree and acknowledge that I expressly waive my right to claim additional lost wages, liquidated damages or other damages, attorneys’ fees or costs based on the City’s alleged failure to include add pays in the calculation of my FLSA regular rate of pay, through September 18, 2024.

Having been fully advised and informed, I voluntarily enter into this Settlement Agreement and Release, including the waiver of rights covered by this Settlement Agreement and Release.

I certify under penalty of perjury that the foregoing is true and correct.

Signature: _______________________________________________________ Name (please print): _________________________________________________ Dated: _____________________________
413254.2
RESOLUTION NO. 25-57

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIERRA MADRE

APPROVING A SETTLEMENT AGREEMENT AND SPECIFIC RELEASE OF

CLAIMS WITH THE SIERRA MADRE PROFESSIONAL FIREFIGHTERS

ASSOCIATION AND INDIVIDUAL CURRENT EMPLOYEE MEMBERS

RECITALS
WHEREAS, in January 2024, the City was alerted to potential overtime underpayments due for members of the Sierra Madre Sierra Madre Professional Firefighters Association (Association); and
WHEREAS, the City administration met and conferred with the Association regarding the corrections to the City’s overtime calculations for the period of January 23, 2021 through September 18, 2024; and
WHEREAS, the City administration negotiated the attached Settlement Agreement and Specific Release of Claims, included herein as Attachment A, with the Association and with individual current employee members to resolve all claims related to overtime underpayments; and
WHEREAS, the City Council would need to approve Attachment A and make the necessary budgetary amendments to effectuate the agreement.

THE CITY COUNCIL OF THE CITY OF SIERRA MADRE DOES HEREBY RESOLVE:

SECTION 1. Agreement Approval. The City Council approves Attachment A and authorizes the City Manager to execute the agreement.

SECTION 2. CEQA. This Resolution is not a “Project” for purposes of the California Environmental Quality Act because under 14 CCR 15378(b)(4), a “Project does not include …Organizational or administrative activities of governments that will not result in direct or indirect physical changes to the environment.”
SECTION 3. Severability. If any sections, subsections, subdivisions, paragraph, sentence, clause or phrase of this Resolution or any part hereof or exhibit hereto is for any reason held to be invalid, such invalidity shall not affect the validity of the remaining portions of this Resolution or any part thereof or exhibit thereto. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraph, sentences, clauses or phrases be declared invalid.
413254.2
SECTION 4. Certification. Pursuant to Government Code Section 36932, the City Clerk shall certify the passage, approval, and adoption of this Resolution by the City Council.

SECTION 5. Effective Date. This Resolution shall take effect immediately upon adoption.

PASSED, APPROVED, AND ADOPTED this 14th day of October, 2025. __________________________
Robert Parkhurst, Mayor
I HEREBY CERTIFY the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Sierra Madre, California, at a meeting held on the 14th day of October, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:
___________________________
Laura Aguilar, City Clerk
413253.1
TO: Mayor and City Council
FROM: Anthony Rainey, Finance Director
REVIEWED BY: Michael Bruckner, City Manager
DATE: October 14, 2025
SUBJECT: OPEB Funding Policy Compliance and FY 25/26 GASB Statement No. 75 Actuarial Valuation

STAFF RECOMMENDATION
Staff recommends that the City Council receive and file the Fiscal Year 2025 Governmental Accounting Standards Board Statement No. 75 Actuarial Valuation of the Other PostEmployment Benefits Trust, confirming continued compliance with the City's Pension and Other Post-Employment Benefits Funding Policy.

ALTERNATIVES

1. Approve staff’s recommendation to receive and file the Other Post-Employment Benefits actuarial valuation and confirm continued compliance with the City’s Pension and Other Post-Employment Benefits Funding (OPEB) Policy.

2. Provide direction to staff for modification of the policy or funding approach.

3. Decline to accept the report and request additional analysis from staff.

EXECUTIVE SUMMARY
The City of Sierra Madre contracted with MacLeod Watts, Consulting Actuaries, to conduct an actuarial valuation of its Other Post-Employment Benefits program for fiscal year 2025. This engagement fulfills the requirements of Governmental Accounting Standards Board (GASB) Statement No. 75, officially titled “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.” The City’s Pension and Other Post-Employment Benefits Funding Policy, adopted on November 12, 2019, sets a target funded ratio of 100 percent and requires the plan to maintain a minimum funded ratio of 85 percent. As of the June 30, 2025 actuarial valuation, the City’s Other Post-Employment Benefits trust is 91.5 percent funded—

6.5 percentage points above the policy minimum, and 8.5 percentage points below the longterm target. All required annual contributions for fiscal year 2025 have met or exceeded the Actuarially Determined Contribution (ADC) amount of $153,409.

City of Sierra Madre

AGENDA REPORT
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer

413253.1

ANALYSIS
Other Post-Employment Benefits and Those Affected Other Post-Employment Benefits (OPEB) are non-pension benefits provided to retired City employees, including medical, dental, vision, and life insurance coverage. The City’s program currently covers 94 active employees (with 73 enrolled for medical), 21 retirees, and one survivor. These benefits secure essential health coverage for former employees and their families after City service.

What the Actuarially Determined Contribution (ADC) Represents The ADC is the amount of annual funding, as calculated by an independent actuary that should be contributed to the Other Post-Employment Benefits trust each fiscal year to keep the plan on a path toward full funding. The ADC covers the current year’s cost of benefits earned by employees, known as the "normal cost", plus an amortization payment to reduce any unfunded liability. Meeting or exceeding the ADC helps ensure the long-term sufficiency of the City’s plan, supports the stability of retiree benefits, and prevents the buildup of unfunded liabilities, thereby protecting overall fiscal health.

Purpose of the Actuarial Valuation and GASB Statement No. 75 GASB Statement No. 75 requires cities to regularly, at least biennially, obtain an independent actuarial valuation of their Other Post-Employment Benefits obligations. This valuation tracks membership, assets, liabilities, and changes in funded status, and the findings must be reported in the City’s annual financial statements. The purpose is to ensure transparency, accuracy, and accountability in public reporting of retiree benefit obligations.

Compliance with City Policy The Pension and Other Post-Employment Benefits Funding Policy requires the Other Post-Employment Benefits plan to maintain a minimum funded ratio of 85% and strive for a target of 100%, with annual contributions at least equal to the ADC. As of fiscal year 2025, the plan’s 91.5% funded ratio places it 6.5% above the policy minimum and

8.5% below the City’s OPEB Funding target. All annual required contributions have been made, confirming strong and compliant plan management.

ENVIRONMENTAL (CEQA)
The recommended action is not classified as a project under the California Environmental Quality Act and is therefore exempt from further review.

STRATEGIC PLAN CORRELATION
This item supports Strategic Plan Goal 1: Organizational Sustainability, especially:
x Objective 1.2 Fiscal Stability Long-Range Planning (Initiative 1.2.2 and Project 1.2.2A) x Objective 1.4 Public Transparency Reporting (Initiative 1.4.1).

PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. Copies of this report can be accessed on the City’s website at www.sierramadreca.gov.

413253.1

FISCAL IMPACT
Maintaining compliance with City funding policy and Governmental Accounting Standards Board requirements protects the City from accumulating unfunded Other Post-Employment Benefits liabilities and supports stable long-term budgeting. For fiscal year 2025, the Actuarially Determined Contribution (ADC) is $153,409 and this amount was fully contributed.

ATTACHMENTS:

A. Fiscal Year 2025 Governmental Accounting Standards Board Statement No. 75 Other Post-Employment Benefits Actuarial Report (MacLeod Watts)

Portland, OR • 503.419.0466 • www.macleodwatts.com
August 15, 2025
Anthony Rainey
Finance Director
City of Sierra Madre
232 W. Sierra Madre Blvd
Sierra Madre, CA 91024
Re: City of Sierra Madre Other Post-Employment Benefits GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 Dear Mr. Rainey,
We are pleased to enclose our actuarial report providing financial information about the other postemployment benefit (OPEB) liabilities of the City of Sierra Madre. The report’s text describes our analysis and assumptions in detail.

The primary purpose of this report is to provide information required by GASB 75 (“Accounting and Financial Reporting for Postemployment Benefits Other Than Pension”) to be reported in the City’s financial statements for the fiscal year ending June 30, 2025. The information included in this report reflects the City’s established OPEB funding policy to contribute, on average, 100% or more of the Actuarially Determined Contribution.

The exhibits presented are based on a roll forward of the results of the June 30, 2023, actuarial valuation, and on the employee and plan data provided to us for that valuation. The City also provided information on retiree benefit payments and trust contributions/reimbursements for the current fiscal year. As with any analysis, the soundness of the report is dependent on the inputs. Please review the information shown in the report to be comfortable that it matches your records.

We appreciate the opportunity to work on this analysis and acknowledge the efforts of City employees who provided valuable time and information to enable us to prepare this report. Please let us know if we can be of further assistance.

Sincerely,
Catherine L. MacLeod, FSA, FCA, MAAA
Principal & Consulting Actuary
Enclosure
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GASB 75 Actuarial Report
Measured as of June 30,202ϰ
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Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 Table of Contents
A. Executive Summary ...................................................................................................................................... 1 OPEB Obligations of the City ................................................................................................................... 1 OPEB Funding Policy ................................................................................................................................ 2 Actuarial Assumptions ............................................................................................................................. 2 Important Dates Used in the Valuation .................................................................................................. 2 Updates Since the Prior Report ............................................................................................................... 3 Impact on Statement of Net Position and OPEB Expense for Fiscal Year Ending 2025 .......................... 3 Important Notices ............................................................................................................. ...................... 3 B. Results Measured as of June 30, 2024 ......................................................................................................... 4 C. Accounting Information (GASB 75) .............................................................................................................. 5 Components of Net Position and Expense .............................................................................................. 5 Change in Net Position During the Fiscal Year ........................................................................................ 6 Change in Fiduciary Net Position During the Measurement Period ....................................................... 7 Expected Long-term Return on Trust Assets ........................................................................................... 7 Recognition Period for Deferred Resources ............................................................................................ 8 Deferred Resources as of Fiscal Year End and Expected Future Recognition ......................................... 8 Sensitivity of Liabilities to Changes in the Discount Rate and Healthcare Cost Trend Rate ................... 9 Schedule of Changes in the City’s Net OPEB Liability and Related Ratios ............................................ 10 Schedule of Contributions ..................................................................................................... ................ 12 Detail of Changes to Net Position ......................................................................................................... 13 Schedule of Deferred Outflows and Inflows of Resources .................................................................... 14 City Contributions to the Plan ............................................................................................................... 15 Projected Benefit Payments (15-year projection) ................................................................................. 16 Sample Journal Entries .......................................................................................................................... 17 D. Funding Information ................................................................................................................................... 18 E. Certification .............................................................................................................. .................................. 19 F. Supporting Information ..................................................................................................... ......................... 20 Section 1 - Summary of Employee Data ................................................................................................ 20 Section 2 - Summary of Retiree Benefit Provisions ............................................................................... 22 Section 3 - Actuarial Methods and Assumptions .................................................................................. 24 Appendix 1: Important Background Information ............................................................................................... 30 Appendix 2: MacLeod Watts Age Rating Methodology ...................................................................................... 35 Appendix 3: MacLeod Watts Mortality Projection Methodology ....................................................................... 36 Glossary ...................................................................................................................... ................................. 37 Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 1 A. Executive Summary
This report presents actuarial information regarding the other post-employment benefit (OPEB) program of the City of Sierra Madre (the City). The purpose of this valuation is to assess the OPEB liabilities and provide disclosure information as required by Statement No. 75 of the Governmental Accounting Standards Board (GASB 75) for the fiscal year ending June 30, 2025.

Important background information regarding the valuation process can be found in the Appendices.

We recommend users of the report read this information to familiarize themselves with the process and context of actuarial valuations, including the requirements of GASB 75. The pages following this executive summary present various exhibits and other relevant information appropriate for disclosures under GASB 75.

This report is based on a roll forward of the results of the June 30, 2023, valuation. A new biennial valuation will need to be prepared as of June 30, 2025. Results of that valuation will first be applied to prepare the GASB 75 report for the City’s fiscal year ending June 30, 2026.

OPEB Obligations of the City
The City provides continuation of medical coverage to its retiring employees. This coverage may create one or more of the following types of OPEB liabilities:
x Explicit subsidy liabilities: An “explicit subsidy” exists when the employer contributes directly toward the cost of retiree healthcare. In this program, the City pays a portion of medical premiums for qualifying retirees. Details are provided in Supporting Information Section 2. x Implicit subsidy liabilities: An “implicit subsidy” exists when premiums are developed using blended active and retiree claims experience. In this situation, premiums charged for retirees may not be sufficient to cover expected medical claims1
and the premiums charged for active
employees are said to “implicitly subsidize” retirees. This OPEB program includes implicit subsidy liabilities for retiree coverage prior to coverage under Medicare. x Other subsidy liabilities: Pooled plans that do not blend active and retiree premiums likely generate subsidies between employers and retirees within the pool. In the CalPERS medical program, the premium rates for Medicare-covered retirees are based only on retiree claims experience of the pool. An actuarial practice note indicates these subsidies should be included in plan liabilities to the extent they are paid by the employer.2 We believe there is no other subsidy
liability for Medicare retirees required to be valued for this plan.

We determine explicit subsidy liabilities using the expected direct payments promised by the plan toward retiree coverage. We determine the implicit and other subsidy liabilities as the projected difference between (a) estimated retiree medical claim costs by age and (b) premiums charged for retiree coverage. For more information on MacLeod Watts’ age rating methodology, see Appendix 2. 1 In rare situations, premiums for retiree coverage may be high enough that they subsidize active employees’ claims. 2 Exceptions exist for 1) Medicare Advantage Plans, treated as if their premiums are age-based due to the nature of the Federal subsidies paid to these plans, and 2) when employer explicit subsidies to Medicare-covered retirees are low and no part of any potential pool subsidy is expected to be paid by the employer.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 2 Executive Summary
(Continued)
OPEB Funding Policy
The City’s OPEB funding policy affects the calculation of liabilities by impacting the discount rate used to develop the plan liability and expense. “Prefunding” is the term used when an agency consistently contributes an amount based on an actuarially determined contribution (ADC) each year. GASB 75 allows prefunded plans to use a discount rate that reflects the expected earnings on trust assets. Payas-you-go, or “PAYGO”, is the term used when an agency only contributes the required retiree benefits when due. When an agency finances retiree benefits on a pay-as-you-go basis, GASB 75 requires the use of a discount rate equal to a 20-year high grade municipal bond rate.

The City continues to prefund its OPEB liability, consistently contributing 100% or more of the Actuarially Determined Contributions each year. With the City’s approval, the discount rate used in this valuation is 5.90%, reflecting the City’s expectation of the long-term return on trust assets on the measurement date. Information on how this rate was determined is provided on page 7, Expected Return on Trust Assets.

Actuarial Assumptions
The actuarial “demographic” assumptions (i.e., rates of retirement, death, disability or other termination of employment) used in this report were chosen, for the most part, to be the same as the actuarial demographic assumptions used for the most recent valuation of the retirement plan(s) covering City employees. Other assumptions, such as age-related healthcare claims, healthcare trend, retiree participation rates and spouse coverage, were selected based on demonstrated plan experience and/or our best estimate of expected future experience. All these assumptions, and more, impact expected future benefits.

Please note that this valuation has been prepared on a closed group basis. This means that only employees and retirees present as of the valuation date are considered. We do not consider replacement employees for those we project to leave the current population of plan participants until the valuation date following their employment.

We emphasize that this actuarial valuation provides a projection of future results based on many assumptions. Actual results are likely to vary to some extent and we will continue to monitor these assumptions in future valuations. See Section 3 for a description of assumptions used in this valuation.

Important Dates Used in the Valuation
GASB 75 allows reporting liabilities as of any fiscal year end based on: (1) a valuation date no more than 30 months plus 1 day prior to the close of the fiscal year end; and (2) a measurement date up to one year prior to the close of the fiscal year. The following dates were used for this report:

Fiscal Year End June 30, 2025
Measurement Date June 30, 2024
Measurement Period June 30, 2023, to June 30, 2024
Valuation Date June 30, 2023
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 3 Executive Summary
(Concluded)
Updates Since the Prior Report
This report is based on a roll forward of the June 2023 valuation results. No benefit changes and no material changes in plan members were reported to MacLeod Watts from those provided to us for the 2023 valuation. Accordingly, no new census data was collected, and no plan experience was determined other than to reflect actual 2025 premium rates in lieu of the prior assumed increases over 2024 rates. The only assumption changes were updates to the expected trust return and discount rate, reflecting new information provided by CalPERS for funds invested with CERBT. Investment experience (the difference between actual and expected trust earnings) was also determined.

Impact on Statement of Net Position and OPEB Expense for Fiscal Year Ending 2025 The plan’s impact on Net Position will be the sum of difference between assets and liabilities as of the measurement date plus the unrecognized net outflows and inflows of resources. Different recognition periods apply to deferred resources depending on their origin. The plan’s impact on Net Position on the measurement date can be summarized as follows:

Important Notices
This report is intended to be used only to present the actuarial information relating to other postemployment benefits for the City’s financial statements. The results of this report may not be appropriate for other purposes, where other assumptions, methodology and/or actuarial standards of practice may be required or more suitable. We note that various issues in this report may involve legal analysis of applicable law or regulations. The City should consult counsel on these matters; MacLeod Watts does not practice law and does not intend anything in this report to constitute legal advice. In addition, we recommend the City consult with their internal accounting staff or external auditor or accounting firm about the accounting treatment of OPEB liabilities.

Items
For ReporƟng At
Fiscal Year Ending
June 30, 2025
Total OPEB Liability 2,623,217 $
Fiduciary Net Position (2,399,251)
Net OPEB Liability 223,966 $
Adjustment for Deferred Resources:

Deferred (Outflows) (641,213)
Deferred Inflows 424,489
Impact on Statement of Net Position 7,242 $
OPEB Expense, FYE 6/30/2025 140,674 $
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 4 B. Results Measured as of June 30, 2024
The City’s OPEB liability measured as of June 30, 2024, was determined based on a “roll-forward” of the June 30, 2023, valuation. A roll-forward valuation moves the plan liability forward based on expected changes. For this type of valuation, we do not collect new plan data, and we generally do not change any actuarial assumptions. One exception is that changes in the liability discount rate reflecting changes in the municipal bond index or updated trust earnings expectations are reflected as of the new measurement date. Updated trust assets as of the measurement date are also reflected in the rollforward valuation.

GASB allows roll-forward valuations to be performed in the year following the full biennial valuation if no material changes to the plan or the plan’s members have occurred. Examples of material changes would include significantly different terminations or retirements during the year than were assumed, or a change in the retirement plan provisions. The only such change we identified and reflected in this report were the known increases in the 2025 premium rates (and by extension, estimated retiree claims costs), which exceeded the increases over the 2024 premiums we assumed in the 2023 valuation.

The chart below reconciles the liability reported last year to that obtained by the roll-forward valuation as of the end of the current fiscal year.

Balance at Fiscal Year Ending 6/30/2024
Measurement Date 6/30/2023 $ 2,167,916 2,411,910 $ 243,994 $ Expected Changes During the Period:

Service Cost 125,693 125,693
Interest Cost 139,429 139,429
Expected Investment Income 122,899 (122,899)
City Contributions 149,706 (149,706)
Trust Administrative Expenses (698) 698
Benefit Payments (95,584) (95,584) -
Total Expected Changes During the Period 176,323 169,538 (6,785) Expected at Fiscal Year Ending 6/30/2025
Measurement Date 6/30/2024 $ 2,344,239 2,581,448 $ 237,209 $ Unexpected Changes During the Period:

Change Due to Investment Experience 55,012 (55,012)
Change Due to 2025 Premiums and Estimated
Claims Higher Than Expected 129,617 129,617
Change Due to Change in Discount Rate (87,848) (87,848) Total Unexpected Changes During the Period 55,012 41,769 (13,243) Balance at Fiscal Year Ending 6/30/2025
Measurement Date 6/30/2024 $ 2,399,251 2,623,217 $ 223,966 $ ReconciliaƟon of Changes
During Measurement Period
Total
OPEB
Liability
(a)
Fiduciary
Net
Position
(b)
Net
OPEB
Liability
(c) = (a) - (b)
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 5 C. Accounting Information (GASB 75)
The following exhibits are designed to satisfy the reporting and disclosure requirements of GASB 75 for the fiscal year ending June 30, 2025. The City is classified for GASB 75 purposes as a single employer.

Components of Net Position and Expense
The exhibit below shows the development of Net Position and Expense as of the Measurement Date.

Plan Summary InformaƟon for FYE June 30, 2025
Measurement Date is June 30, 2024
City of Sierra
Madre
Items Impacting Net Position:

Total OPEB Liability 2,623,217 $
Fiduciary Net Position (2,399,251)
Net OPEB Liability (Asset) 223,966
Deferred (Outflows) Due to:

Assumption Changes (154,290)
Plan Experience (124,961)
Investment Experience (208,553)
Deferred Contributions (153,409)
Deferred Inflows Due to:

Assumption Changes 160,615
Plan Experience 166,552
Investment Experience 97,322
Impact on Statement of Net Position, FYE 6/30/2025 7,242 $ Items Impacting OPEB Expense:

Service Cost 125,693 $
Cost of Plan Changes -
Interest Cost 139,429
Expected Earnings on Assets (122,899)
Trust Administrative Expenses 698
Recognition of Deferred Outflows:

Assumption Changes 24,454
Plan Experience 13,731
Investment Experience 103,579
Recognition of Deferred (Inflows):

Assumption Changes (21,096)
Plan Experience (58,601)
Investment Experience (64,314)
OPEB Expense, FYE 6/30/2025 140,674 $
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 6 Accounting Information
(Continued)
Change in Net Position During the Fiscal Year
The exhibit below shows the year-to-year changes in the components of Net Position.

For Reporting at Fiscal Year End 6/30/2024 6/30/2025
Measurement Date 6/30/2023 6/30/2024
Total OPEB Liability 2,411,910 $ 2,623,217 $ 211,307 $
Fiduciary Net Position (2,167,916) (2,399,251) (231,335) Net OPEB Liability (Asset) 243,994 223,966 (20,028)
Deferred (Outflows) Due to:

Assumption Changes (178,744) (154,290) 24,454
Plan Experience (9,075) (124,961) (115,886)
Investment Experience (312,132) (208,553) 103,579
Deferred Contributions (149,706) (153,409) (3,703)
Deferred Inflows Due to:

Assumption Changes 93,863 160,615 66,752
Plan Experience 225,153 166,552 (58,601)
Investment Experience 106,624 97,322 (9,302)
Impact on Statement of Net Position 19,977 $ 7,242 $ (12,735) $ $ 19,977
140,674
(153,409)
$ 7,242
OPEB Expense
$ 153,409
(12,735)
$ 140,674
Impact on Statement of Net Position, FYE 6/30/2025
City Contributions During Fiscal Year
Deterioration (Improvement) in Net Position
OPEB Expense (Income), FYE 6/30/2025
Change
During
Period
Change in Net Position During the Fiscal Year
Impact on Statement of Net Position, FYE 6/30/2024
OPEB Expense (Income)
City Contributions During Fiscal Year
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 7 Accounting Information
(Continued)
Change in Fiduciary Net Position During the Measurement Period Expected Long-term Return on Trust Assets
CalPERS last updated the projected future investment returns for CERBT Strategy 2 in June 2024. The returns were determined using a building-block method and best-estimate ranges of expected future real rates of return for each major asset class (expected returns, net of OPEB plan investment expense and inflation). The target allocation and best estimates of geometric real rates of return published by CalPERS for each major class are split for years 1-5 and years 6-20. We assume that the returns for years 6 through 20 would continue in later years.

To derive the expected future trust return specifically for the District, we first adjusted CalPERS’ future return expectations to align with the 2.5% general inflation assumption used in this report. Then applying the plan specific benefit payments (as determined from the June 30, 2023, valuation) to CalPERS’ bifurcated return expectations, we determined the single equivalent long-term rate of return to be 6.2%. The City is less optimistic about future trust earnings and approved 5.9% as the assumed trust return.

City of Sierra
Madre
Fiduciary Net PosiƟon at Fiscal Year Ending 6/30/2024
Measurement Date 6/30/2023 $ 2,167,916
Changes During the Period:

Investment Income 177,911
City Contributions 149,706
Trust Administrative Expenses (698)
Benefit Payments (95,584)
Net Changes During the Period 231,335
Fiduciary Net PosiƟon at Fiscal Year Ending 6/30/2025
Measurement Date 6/30/2024 $ 2,399,251
Major Asset Classification Target
Allocation
General
Inflation
Rate
Assumption
1-5 Year
Expected
Real Rate
of Return
Compound
Return
Yrs 1-5
General
Inflation
Rate
Assumption
6-20 Year
Expected
Real Rate
of Return
Compound
Return
Years 6-20
Global Equity 34% 2.40% 3.90% 6.30% 2.40% 4.70% 7.10%
Fixed Income 41% 2.40% 2.70% 5.10% 2.40% 2.60% 5.00%
Global Real Estate (REITs) 17% 2.40% 3.70% 6.10% 2.40% 4.00% 6.40% Treasury Inflation Protected Securities 5% 2.40% 1.70% 4.10% 2.40% 1.40% 3.80% Commodities 3% 2.40% 2.90% 5.30% 2.40% 2.00% 4.40%
Volatility 9.5% Portfolio 5.9% Portfolio 6.2%
Portfolio compound return is time-weighted and net of administrative fees.

CERBT Strategy 2 Years 1-5 Years 6-20
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 8 Accounting Information
(Continued)
Recognition Period for Deferred Resources
Liability changes due to plan experience which differs from what was assumed in the prior measurement period and/or from assumption changes during the period are recognized over the plan’s Expected Average Remaining Service Life (“EARSL”). The EARSL of 10.36 years is the period used to recognize such changes in the OPEB Liability arising during the current measurement period.

When applicable, changes in the Fiduciary Net Position due to investment performance different from the assumed earnings rate are always recognized over 5 years.

Liability changes attributable to benefit changes occurring during the period, if any, are recognized immediately.

Deferred Resources as of Fiscal Year End and Expected Future Recognition The exhibit below shows deferred resources as of the fiscal year end June 30, 2025.

The City will recognize the Deferred Contributions in the next fiscal year. In addition, future recognition of these deferred resources is shown below.

City of Sierra Madre Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of Assumptions $ 160,615 154,290 $
Differences Between Expected
and Actual Experience 166,552 124,961
Net Difference Between Projected and
Actual Earnings on Investments - 111,231
Deferred Contributions - 153,409
Total $ 327,167 543,891 $
For the
Fiscal Year
Ending
June 30
Recognized
Net Deferred
Ouƞlows (InŇows)
of Resources
2026 $ (5,920)
2027 64,715
2028 (24,738)
2029 (21,096)
2030 9,287
Thereafter 41,067
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 9 Accounting Information
(Continued)
Sensitivity of Liabilities to Changes in the Discount Rate and Healthcare Cost Trend Rate The discount rate used for accounting purposes for the fiscal year end 2025 is 5.9%. Healthcare Cost Trend Rate was assumed to start at 6.0% on January 1, 2026 (known increases in January 2025 were applied)) and decrease to 3.9% for years 2075 and later. The impact of a 1% increase or decrease in these assumptions is shown in the chart below.

Change in
Discount Rate
Current - 1%

4.90%
Current

5.90%
Current + 1%

6.90%
Total OPEB Liability 2,623,217 2,935,392 2,361,858
Increase (Decrease) 312,175 (261,359)
% Increase (Decrease) 11.9% -10.0%
Net OPEB Liability (Asset) 223,966 536,141 (37,393)
Increase (Decrease) 312,175 (261,359)
% Increase (Decrease) 139.4% -116.7%
Change in
Healthcare Cost Trend Rate
Current Trend
- 1%
Current
Trend
Current Trend
+ 1%
Total OPEB Liability 2,623,217 2,316,750 2,998,104
Increase (Decrease) (306,467) 374,887
% Increase (Decrease) -11.7% 14.3%
Net OPEB Liability (Asset) 223,966 (82,501) 598,853
Increase (Decrease) (306,467) 374,887
% Increase (Decrease) -136.8% 167.4%
Sensitivity to:

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025

10 e City’s Net OPEB Liability and Related Ratios
ion of the 10-year history of changes in the Net OPEB Liability. Years since GASB 75 was implemented are shown. 2025 2024 2023 2022 2021 2020 2019 2018
6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 $ 138,183 125,693 $ 113,161 $ 96,434 $ 93,625 $ 113,216 $ 109,652 $ 107,444 $ 131,943 139,429 128,999 127,156 120,510 139,838 130,212 132,432 - - - - - - - -
and
(14,531) 129,617 - 12,735 - (352,670) - (186,345)
6,215 (87,848) 182,231 (131,711) - 47,406 - 13,329
(93,977) (95,584) (134,288) (113,325) (111,228) (105,241) (95,572) (108,541) lity 167,833 211,307 290,103 (8,711) 102,907 (157,451) 144,292 g 2,244,077 2,411,910 1,953,974 1,962,685 1,859,778 2,017,229 1,872,937 1,914,618 a) $ 2,411,910 2,623,217 $ 2,244,077 $ 1,953,974 $ 1,962,685 $ 1,859,778 $ 2,017,229 $ 1,872,937 $ $ 93,977 149,706 $ 134,288 $ 113,325 $ 150,528 $ 163,349 $ 95,572 $ 108,541 $ 74,577 177,911 (301,301) 393,718 101,166 118,856 98,236 114,754 (93,977) (95,584) (134,288) (113,325) (111,228) (105,241) (95,572) (108,541) (600) (698) (606) (729) (920) (363) (836) (782)
- - - - - - (2,105)
et position 73,977 231,335 (301,907) 392,989 139,546 176,601 95,295 113,972 eginning 2,093,939 2,167,916 2,395,846 2,002,857 1,863,311 1,686,710 1,591,415 1,477,443 nding (b) $ 2,167,916 2,399,251 $ 2,093,939 $ 2,395,846 $ 2,002,857 $ 1,863,311 $ 1,686,710 $ 1,591,415 $ - (b) $ 243,994 223,966 $ 150,138 $ (441,872) $ (40,172) $ (3,533) $ 330,519 $ 281,522 $ ent period 9,779,206 $ 8,852,694 $ 8,203,079 $ 7,686,509 $ 6,548,837 $ 5,884,525 $ 5,537,332 $ 4,937,800 $ red payroll 2.29% 2.76% 1.83% -5.75% -0.61% -0.06% 5.97% 5.70% Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 11 e City’s Net OPEB Liability and Related Ratios
2025 2024 2023 2022 2021 2020 2019 2018
6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 sumptions applied in determining results on the prior page Actual 2025;

6.0% in 2026
decreasing to

3.9% by 2075

6.5% in 2025
decreasing to

3.9% by 2075

5.90% 5.60% 5.65% 6.45%
MacLeod Watts Scale 2020 MacLeod Watts Scale 2018 MacLeod Watts Scale 2017 6/30/2023

3.00%
From 55 to 70
CalPERS 2021
Experience Study
MacLeod Watts Scale 2022
Entry Age Normal
Market Value

2.50%
CalPERS 2017
Experience Study
CalPERS 2017
Experience Study
CalPERS 2014
Experience Study

3.00% 3.00% 3.25%

6.35% 6.73%
From 55 to 70 From 55 to 70 From 55 to 70

2.50% 2.50% 2.75%

5.7% in 2022, stepping down
by .1% to 4.0% in 2076

7.5% in 2019, stepping down
by .5% to 5.0% in 2024

7.5% in 2019, stepping down
by .5% to 5.0% in 2024
Market Value Market Value Market Value
6/30/2021 6/30/2019 6/30/2017
Entry Age Normal Entry Age Normal Entry Age Normal
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025

12 2025 2024 2023 2022 2021 2020 2019 2018
ution (ADC) 153,409 $ 149,706 $ 90,289 $ 103,663 $ 100,910 $ 150,528 $ 145,849 $ 153,086 $ DC 149,706 153,409 93,977 134,288 113,325 150,563 163,349 108,541 )- $ - $ (3,688) $ (30,625) $ (12,415) $ (35) $ (17,500) $ 44,545 $ l year 10,844,413 $ 9,779,206 $ 8,852,694 $ 8,203,079 $ 7,686,509 $ 6,061,061 $ 5,884,525 $ 5,537,332 $ d payroll 1.41% 1.53% 1.06% 1.64% 1.68% 2.48% 2.78% 2.20% 100.00% 100.00% 104.08% 129.54% 112.30% 100.02% 112.00% 70.90% and assumptions used to determine contribution rates:

ADCs: 6/30/2021 6/30/2015
Entry Age
Normal
Entry Age
Normal
Level dollar
30 yrs open
Level % of Pay
20 yr closed
29 yrs left 30 yrs left 30 yrs left 15 yrs left 16 yrs left 17 yrs left 18 yrs left 19 yrs left Market Value Market Value

2.50% 2.50% 2.50% 2.75%

5.7% in 2022,
stepping
down by .1%
to 4.0% in
2076

7.5% in 2017,
stepping down
by .5% to 4.5%
in 2023

3.00% 3.25%
ly) 6.35% 6.73%
From 55 to 70 From 55 to 70 From 55 to 70 From 55 to 70 CalPERS 2017
Exper Study
CalPERS 2014
Exper Study
MW Scale
2020
MW Scale
2014
MacLeod Watts Scale 2018 MacLeod Watts Scale 2017
6/30/2023
Entry Age Normal
Level dollar
30 yrs closed
MacLeod Watts Scale 2022
CalPERS 2021
Experience Study

6.5% in 2025 decreasing to

3.9% by 2075
CalPERS 2017
Experience Study
CalPERS 2014
Experience Study

3.00% 3.25%

6.25% 6.73%
From 55 to 70 From 55 to 70
Market Value

3.00%

5.60%
6/30/2019 6/30/2017
Entry Age Normal Entry Age Normal
Level % of Pay
20 yr closed
Level % of Pay
20 yr closed
Market Value Market Value

2.50% 2.75%

7.5% in 2019, stepping down
by .5% to 5.0% in 2024

7.5% in 2019, stepping down
by .5% to 5.0% in 2024
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 13 Assumption
Changes
Plan
Experience
Investment
Experience
Deferred
Contributions
Assumption
Changes
Plan
Experience
Investment
Experience
243,994 178,744 $ 9,075 $ 312,132 $ 149,706 $ 93,863 $ 225,153 $ 106,624 $ 19,977 $ 125,693 125,693
139,429 139,429
122,899) (122,899)
149,706) (149,706)
- -
698 698
- -
(87,848) 87,848 -
129,617 129,617 -
(55,012) - 55,012
(13,731) (24,454) (103,579) (149,706) (21,096) (58,601) (64,314) 147,459 (153,409) 153,409
(20,028) (24,454) 115,886 (103,579) 3,703 66,752 (58,601) (9,302) (12,735) 223,966 154,290 $ 124,961 $ 208,553 $ 153,409 $ 160,615 $ 166,552 $ 97,322 $ 7,242 $ Impact on
Statement of
Net Position
(f) = (c) - (d) + (e)
Net
PEB
bility
(a) - (b)
(d) Deferred Outflows: (e) Deferred Inflows:

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 14 d Pension Expense is shown below. Deferred Contributions are not shown.

Balance
as of
Jun 30, 2024
2023-24
(FYE 2025)
2024-25
(FYE 2026)
2025-26
(FYE 2027)
2026-27
(FYE 2028)
2027-28
(FYE 2029)
2028-29
(FYE 2030) Thereafter
$ 1,466 1,601 $ 1,466 $ 135 $ - $ - $ - $ - $
4,933 17,808 4,933 4,933 4,933 3,009 - -
(12,616) (81,247) (12,616) (12,616) (12,616) (12,616) (12,616) (18,167) 17,455 129,866 17,455 17,455 17,455 17,455 17,455 42,591 600 5,015 600 600 600 600 600 2,015
(8,480) (79,368) (8,480) (8,480) (8,480) (8,480) (8,480) (36,968) 3,673 - - - - - - -
(53,312) (53,312) (53,312) - - - - -
91,163 182,325 91,163 91,162 - - - -
8,743 26,228 8,743 8,743 8,742 - - -
(11,002) (44,010) (11,002) (11,002) (11,002) (11,004) - - (20,500) (22,345) (20,500) (1,845) - - - -
(36,698) (132,482) (36,698) (36,698) (36,698) (22,388) - - 1,220 7,855 1,220 1,220 1,220 1,220 1,220 1,755
(1,403) (11,725) (1,403) (1,403) (1,403) (1,403) (1,403) (4,710) 12,511 117,106 12,511 12,511 12,511 12,511 12,511 54,551 Scheduled Recognition in Expense
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 15 Accounting Information
(Continued)
City Contributions to the Plan
City contributions to the Plan occur as benefits are paid to or on behalf of retirees and/or as contributions are made to the OPEB trust. Benefit payments may occur in the form of direct payments for premiums (“explicit subsidies”) and/or indirect payments to retirees in the form of higher premiums for active employees (“implicit subsidies”). For details on Important Background Information, see Appendices.

The City reported the following OPEB contributions paid during the measurement period.

The City reported the following OPEB contributions as made after the measurement date and prior to the current fiscal year end.

For the Measurement Period,
Jul 1, 2023 through Jun 30, 2024
City of Sierra
Madre
City
(a) Contribution To CERBT $ 54,122
(b) Benefits Paid Directly To or On Behalf of Retirees 61,649 (c) Implicit Subsidy Payment 33,935
CERBT
(d) Benefits Paid Directly To or On Behalf of Retirees - (e) Reimbursements to City -
Total Benefits Paid During the MP, (b)+(c)+(d) 95,584
City Contribution During the MP, (a)+(b)+(c)-(e) 149,706 For the Fiscal Year,
Jul 1, 2024 through Jun 30, 2025
City of Sierra
Madre
City
(f) Contribution To CERBT $ 30,208
(g) Benefits Paid Directly To or On Behalf of Retirees 70,777 (h) Implicit Subsidy Payment 52,424
CERBT
(i) Benefits Paid Directly To or On Behalf of Retirees - (j) Reimbursements to City -
Total Benefits Paid During the Current FY, (g)+(h)+(i) 123,201 City Contribution During the Current FY, (f)+(g)+(h)-(j) 153,409 Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 16 Accounting Information
(Continued)
Projected Benefit Payments (15-year projection)
The following is an estimate of other post-employment benefits to be paid on behalf of current retirees and current employees expected to retire from the City. Expected annual benefits have been projected on the basis of the actuarial assumptions outlined in Section 3.

These projections do not include any benefits expected to be paid on behalf of current active employees prior to retirement, nor do they include any benefits for potential future employees (i.e., those who might be hired in future years).

The amounts shown in the Explicit Subsidy table reflect the expected payment by the City toward retiree medical premiums in each of the years shown. The amounts are shown separately, and in total, for those retired on the valuation date (“current retirees”) and those expected to retire after the valuation date (“future retirees”).

The amounts shown in the Implicit Subsidy table reflect the estimated excess of retiree medical and prescription drug claims over the premiums expected to be charged during the year for retirees’ coverage. These amounts are also shown separately and in total for those currently retired on the valuation date and for those expected to retire in the future.

Current
Retirees
Future
Retirees Total
Current
Retirees
Future
Retirees Total
2025 70,777 - 70,777 52,424 - 52,424 123,201
2026 54,128 32,109 86,237 21,171 39,950 61,121 147,358
2027 45,132 40,977 86,109 7,928 51,996 59,924 146,033
2028 45,553 49,597 95,150 9,044 58,631 67,675 162,825
2029 46,760 58,214 104,974 10,222 67,479 77,701 182,675 2030 47,927 67,531 115,458 11,429 85,342 96,771 212,229 2031 49,043 63,796 112,839 12,655 80,617 93,272 206,111 2032 50,093 58,924 109,017 13,894 88,670 102,564 211,581 2033 51,063 54,340 105,403 15,146 90,314 105,460 210,863 2034 51,938 61,291 113,229 16,411 105,032 121,443 234,672 2035 52,700 68,160 120,860 17,680 111,122 128,802 249,662 2036 53,345 75,205 128,550 18,940 110,052 128,992 257,542 2037 53,854 65,760 119,614 20,151 93,599 113,750 233,364 2038 54,194 73,502 127,696 21,260 90,711 111,971 239,667 2039 54,337 81,761 136,098 22,210 89,766 111,976 248,074 Total
Projected Annual Benefit Payments
Fiscal Year
Ending
June 30
Explicit Subsidy Implicit Subsidy
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 17 Accounting Information
(Concluded)
Sample Journal Entries
Debit Credit Debit Credit
Net OPEB Liability 243,994 243,994
Deferred Outflow:

Assumption Changes 178,744
Plan Experience 9,075
Investment Experience 312,132
Contribution Subsequent to MD 149,706
Deferred Outflows 649,657
Deferred Inflow:

Assumption Changes 93,863
Plan Experience 225,153
Investment Experience 106,624
Deferred Inflows 425,640
Record Benefits Paid to Retirees
Net OPEB Liability
Cash
Record Contributions to the Trust
Net OPEB Liability
Cash
Record Implicit Subsidy Payment
Net OPEB Liability
Premium Expense
Debit Credit Debit Credit
Net OPEB Liability 133,381 133,381
Deferred Outflow:

Assumption Changes 24,454
Plan Experience 115,886
Investment Experience 103,579
Contribution Subsequent to MD 3,703
Deferred Outflows 8,444
Deferred Inflow:

Assumption Changes 66,752
Plan Experience 58,601
Investment Experience 9,302
Deferred Inflows 1,151
OPEB Expense 140,674 140,674
52,424
52,424
Record End of Year
Updates to OPEB Accounts
By Source Sources Combined
Debit Credit
30,208
30,208
70,777
70,777
Debit Credit
OPEB Accounts at
Beginning of Fiscal Year
By Source Sources Combined
Debit Credit
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 18 D. Funding Information
Prefunding (setting aside funds to accumulate in an irrevocable OPEB trust) has certain advantages, one of which is the ability to (potentially) use a higher discount rate in the determination of liabilities for GASB 75 reporting purposes. The City has been prefunding its OPEB liability by contributing 100% or more of the Actuarially Determined Contribution (ADC) each year.

Different terminology is sometimes used by actuaries and accountants when referring to key liability and expense components. Here are some of these terms which are often interchangeable:

The City approved development of Actuarially Determined Contributions (ADC) based on the following two components, which are then adjusted with interest to the City’s fiscal year end:
x The amounts attributed to service performed in the current fiscal year (the normal cost) and x Amortization of the unfunded actuarial accrued liability (UAAL).

The ADC determined for the City’s fiscal year ending June 30, 2025 was developed based on the June 30, 2023 actuarial valuation using a 5.6% discount rate. A summary is shown below:

The ADC determined on this basis should provide for trust sufficiency, based on the current plan provisions and employee data, if all assumptions are realized and providing that the City contribute 100% or more of the total ADC each year. When an agency commits to funding the trust at or above the ADC, GASB 75 allows use of the expected long term trust return to be used as the discount rate in determining the plan liability. Even so, the ADC developed on this basis does not guarantee trust sufficiency due to the non-trivial risk that the assumptions used to determine plan contributions may not be realized.

Actuarial Funding Terminology GASB 75 Terminology
Present Value of Projected Benefits (PVPB) N/A; typically not reported for accounting purposes Actuarially Accrued Liability (AAL) Total OPEB Liability (TOL) Market Value of Assets Fiduciary Net Position
Unfunded Actuarially Accrued Liability (UAAL) Net OPEB Liability Normal Cost Service Cost
Discount Rate 5.60%
Actuarial Accrued Liability (projected) 2,580,176 $
Actuarial Value of Assets (projected) 2,343,441
Unfunded Actuarial Accrued Liability (UAAL) 236,735
Amortization Factor* 14.9737
Actuarially Determined Contribution for FYE 2025
Normal Cost 129,464
Amortization of UAAL 15,810
Interest to Fiscal Year End 8,135
Total ADC 153,409 $
*Determined on a level dollar basis over a closed 30 year period; 29 years remain for FYE 2025
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 19 E. Certification
The purpose of this report is to provide actuarial information in compliance with Statement 75 of the Governmental Accounting Standards Board (GASB 75) for other postemployment benefits provided by the City of Sierra Madre (the City). We summarized the benefits in this report and our calculations were based on our understanding of the benefits described herein.

In preparing this report we relied without audit on information provided by the City. This information includes, but is not limited to, plan provisions, census data, and financial information. We performed a limited review of this data and found the information to be reasonably consistent. The accuracy of this report is dependent on this information and if any of the information we relied on is incomplete or inaccurate, then the results reported herein will be different from any report relying on more accurate information.

We consider the actuarial assumptions and methods used in this report to be individually reasonable under the requirements imposed by GASB 75 and taking into consideration reasonable expectations of plan experience. The results provide an estimate of the plan’s financial condition at one point in time.

Future actuarial results may be significantly different due to a variety of reasons including, but not limited to, demographic and economic assumptions differing from future plan experience, changes in plan provisions, changes in applicable law, or changes in the value of plan benefits relative to other alternatives available to plan members.

Alternative assumptions may also be reasonable; however, demonstrating the range of potential plan results based on alternative assumptions was beyond the scope of our assignment except to the limited extent required by GASB 75. Plan results for accounting purposes may be materially different than results obtained for other purposes such as plan termination, liability settlement, or underlying economic value of the promises made by the plan.

This report is prepared solely for the use and benefit of the City and may not be provided to third parties without prior written consent of MacLeod Watts. Exceptions are: The City may provide copies of this report to their professional accounting and legal advisors who are subject to a duty of confidentiality, and the City may provide this work to any party if required by law or court order. No part of this report should be used as the basis for any representations or warranties in any contract or agreement without the written consent of MacLeod Watts.

The undersigned actuaries are unaware of any relationship that might impair the objectivity of this work. Nothing within this report is intended to be a substitute for qualified legal or accounting counsel.

The signing actuaries are members of the American Academy of Actuaries and meet the qualification standards for rendering this opinion.

Signed: August 15, 2025
__________________________________ ____________________________________ Catherine L. MacLeod, FSA, FCA, MAAA J. Kevin Watts, FSA, FCA, MAAA Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 20 F. Supporting Information
Section 1 - Summary of Employee Data
Active employees: The City reported 94 active members in the data provided to us for the June 30, 2023 valuation. Of these, 73 were enrolled in the medical program, with 21 waiving coverage as of the valuation date.

Retirees: There are also 21 retirees and 1 survivor receiving benefits under this program on the valuation date. The average age at retirement and average current age are summarized in the chart below.

Under 1 1 to 4 5 to 9 10 to 14 15 to 19 20 & Up
Under 25 2 2 2%
25 to 29 3 6 1 10 11%
30 to 34 3 8 2 13 14%
35 to 39 3 7 3 1 14 15%
40 to 44 5 3 4 2 14 15%
45 to 49 2 2 1 2 1 2 10 11%
50 to 54 6 5 2 2 2 17 18%
55 to 59 1 1 1 1 1 4 9 10%
60 to 64 1 1 1 2 5 5%
65 to 69 0 0%
70 & Up 0 0%
Total 19 34 18 9 4 10 94 100%
Percent 20% 36% 19% 10% 4% 11% 100%
Valuation June 2021
Average Attained Age for Actives 40.7 42.8
Average Years of Service 6.8 7.3
June 2023
Distribution of Benefits-Eligible Active Employees
Current Age
Years of Service
Total Percent
Current Age Misc Police Total Percent
Below 50 011 5%
50 to 54 000 0%
55 to 59 000 0%
60 to 64 213 14%
65 to 69 459 41%
70 to 74 325 23%
75 to 79 224 18%
80 & up 000 0%
Total 11 11 22 100%
Average Age:

On 6/30/2023 68.8 67.8 68.3
At retirement 59.6 54.1 56.8
Retirees by Age
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 21 Supporting Information
(Continued)
Section 1 - Summary of Employee Data
(continued)
Summary of Plan Member Counts: The number of members currently or potentially eligible to receive benefits under the OPEB plan are required to be reported in the notes to the financial statements. 22 22
Summary of Plan Member Counts
Number of active plan members
Number of inactive plan members
currently receiving benefits
Number of inactive plan members entitled
to but not receiving benefits
94 Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 22 Supporting Information
(Continued)
Section 2 - Summary of Retiree Benefit Provisions
OPEB provided: The City reported that the only OPEB provided is retiree medical coverage.

Access to coverage: Medical coverage is currently provided through CalPERS as permitted under the Public Employees’ Medical and Hospital Care Act (PEMHCA). This coverage requires the employee to satisfy the requirements for retirement under CalPERS: either (a) attainment of age 50 (age 52 if PEPRA Miscellaneous) with 5 years of State or public agency service or (b) an approved disability retirement.

The employee must begin his or her retirement (pension) benefit within 120 days of terminating employment with the City to be eligible to continue medical coverage through the City and be entitled to the benefits described below. It is the timing of initiating retirement benefits and not timing of enrollment in the medical program which determines whether the retiree qualifies for lifetime medical coverage and any benefits defined in the PEMHCA resolution.

Once eligible, coverage may be continued at the retiree’s option for his or her lifetime. A surviving spouse and other eligible dependents may also continue coverage. If an eligible employee is not already enrolled in the medical plan, he or she may enroll within 60 days of retirement, during any future open enrollment period or with a qualifying life event.

Benefits provided: Under PEMHCA, the City is required to contribute toward retiree premiums for the retiree’s lifetime (and generally for the surviving spouse’s lifetime) or until coverage is discontinued.

For certain qualifying retirees, the City provides temporary additional benefits beyond those required under PEMHCA, based on employee agreements. The following is a summary of these benefits:
x PEMHCA required benefits: All employees who retire from the City (including disability retirement) and continue coverage in the CalPERS medical program are eligible for the benefit provided in the PEMHCA resolutions. Those resolutions provide for the City to contribute toward retiree premiums according to the following:
(a) 5% times
(b) the number of prior years the City has been contracted with PEMHCA times (c) the monthly contracted PEMHCA contribution the employer makes toward active employee health benefits, which was $151 per month in 2023, $157 per month in 2024 and increased to $158 per month in 2025.

Retiree PEMHCA benefits should be equal to active employee PEMHCA benefits after each group has been covered under contract with CalPERS for 20 or more years. The City’s monthly PEMHCA contribution toward health plan benefits for retirees as of valuation date was $151 for all retirees, since all employee groups have been contracted with CalPERS for over 20 years.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 23 Supporting Information
(Continued)
Section 2 - Summary of Retiree Benefit Provisions
(Continued)
x Temporary additional retiree medical benefits: For certain employee groups3, in addition to the benefits described above, the City also provides the following monthly subsidy toward retiree (single coverage) medical premiums until the retiree reaches age 65. Specifically:
¾ For CEA, Executive Management and Confidential/Exempt employees hired before October 15, 1995, and POA employees hired on or before December 22, 2011, who meet the requirements for CalPERS retirement (including disability retirement):
5% times the number of years worked for the City (up to a maximum of 100%) times the lowest cost premium in Region 3.
¾ For CEA, Executive Management and Confidential/Exempt employees hired on or after October 15, 1995, and POA employees hired after December 22, 2011, who retire (including disability retirement) at age 60 or older with at least 30 years of service with the City:
100% of the lowest cost premium in Region 3.

The lowest cost premium in Region 3 available to retirees in 2025 is the Health Net Salud y Mas plan with a monthly premium of $714.40.

Current premium rates: The 2025 CalPERS monthly medical plan rates in the Region 3 rate group are shown in the table below. If different rates apply where the member resides outside of this area, those rates are reflected in the valuation but not listed here. The CalPERS administration fee is assumed to be expensed each year and has not been projected as an OPEB liability in this valuation. 3 The City confirmed that neither Fire employees (SMPFA) nor unrepresented employees are not currently eligible for any retiree medical benefits in excess of those provided by the applicable PEMHCA Resolution.

Plan Ee Only Ee & 1 Ee & 2+ Ee Only Ee & 1 Ee & 2+
Anthem Select HMO 1,833.76 916.88 2,383.89 487.56 975.12 1,525.25 Anthem Traditional HMO 2,130.92 1,065.46 2,770.20 487.56 975.12 1,614.40 Blue Shield Access+ HMO 1,656.96 828.48 2,154.05 448.28 896.56 1,393.65 Blue Shield Trio HMO 1,476.22 738.11 1,919.09 448.28 896.56 1,339.43 Health Net Salud y Más 1,428.80 714.40 1,857.44
Kaiser* 1,853.04 926.52 2,408.95 408.31 816.62 1,372.53 PORAC 1,951.00 970.00 2,484.00 507.00 1,123.00 1,651.00 PERS Gold 1,736.30 868.15 2,257.19 546.13 1,092.26 1,613.15 PERS Platinum 2,527.46 1,263.73 3,285.70 584.70 1,169.40 1,927.64 UHC Harmony 1,512.56 756.28 1,966.33 442.25 884.50 1,338.27 *Medicare rates shown are for Kaiser Senior Advantage Summit Not Available
Region 3 2025 Health Plan Rates
Actives and Pre-Med Retirees Medicare Eligible Retirees Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 24 Supporting Information
(Continued)
Section 3 - Actuarial Methods and Assumptions
The ultimate real cost of an employee benefit plan is the value of all benefits and other expenses of the plan over its lifetime. These payments depend only on the terms of the plan and the administrative arrangements adopted. The actuarial assumptions are used to estimate the cost of these benefits; the funding method spreads the expected costs on a level basis over the life of the plan.

Important Dates
Fiscal Year End June 30, 2025
GASB 75 Measurement Date June 30, 2024 (last day of the prior fiscal year) Valuation Date June 30, 2023
Valuation Methods
Funding Method Entry Age Normal Cost, level percent of pay Asset Valuation Method Market value of assets
Participants Valued Only current active employees and retired participants and covered dependents are valued. No future entrants are
considered in this valuation.

Development of Age-related
Medical Premiums Actual premium rates for retirees and their spouses were adjusted to an age-related basis by applying medical claim cost factors developed from the data presented in the report, “Health Care Costs – From Birth to Death”, sponsored by the Society of Actuaries. A description of the use of claims cost curves can be found in MacLeod Watts’s Age Rating
Methodology (see Appendices).

Pre-Medicare retiree premiums are blended with premiums for active members. Monthly baseline premium costs were set equal to the active single premiums shown in the chart in Section 2. Representative claim costs derived from the dataset provided by CalPERS are shown in the chart on the following page. Estimated age-based claims were applied for all retirees not yet eligible for Medicare.

Medicare-eligible retirees are covered by plans which are rated solely on the experience of Medicare retirees with no subsidy by active employee premiums. Because the City’s contribution is less than the lowest age adjusted premium, there is no pool subsidy to be recognized as a City liability. Age-based claims were not used for Medicare retirees in this valuation.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 25 ods and Assumptions
d Medical Premiums (continued)
50 53 56 59 62 65 70 75 80 85 90 95
MO 876 $ 1,033 $ 1,200$ 1,375 $ 1,564 $
y Más 742 875 1,017 1,165 1,325
1,006 853 1,169 1,340 1,523
1,472 1,710 1,960 2,228 1,248 497 557 605 634 626 598 593 MO $ 1,053 893 $ 1,223$ 1,401 $ 1,593 $
nal HMO 1,129 1,331 1,546 1,772 2,015
ss+ HMO 864 1,019 1,184 1,357 1,542
HMO 727 845 968 617 1,101
y Más 607 716 831 953 1,083
997 846 1,159 1,328 1,510
1,219 1,416 1,623 1,845 1,034 436 $ 488 $ 530 $ 555 $ 548 $ 523$ 519 $ 1,071 908 1,244 1,426 1,621 469 526 571 598 590 564 559 1,510 1,754 2,010 2,285 1,281 497 557 605 634 626 598 593 757 879 642 1,007 1,145
838 973 710 1,115 1,268 436 $ 488 $ 530 $ 555 $ 548 $ 523$ 519 $ 1,106 938 1,285 1,473 1,674 497 557 605 634 626 598 593 Expected Monthly Claims by Medical Plan for Selected Ages - Male Non-Medicare Retirees Medicare Retirees
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Plan not available to Medicare retirees
Plan not available to Medicare retirees
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 26 ods and Assumptions
d Medical Premiums (continued)
50 53 56 59 62 65 70 75 80 85 90 95
HMO 1,086 $ 1,192 $ 1,283 $ 1,387 $ 1,529 $
onal HMO 1,412 1,551 1,669 1,803 1,988
ess+ HMO & E 1,337 1,218 1,439 1,555 1,714
HMO 935 1,026 1,104 1,193 1,316
d y Más 920 1,010 1,087 1,175 1,295
1,161 1,058 1,250 1,351 1,489
1,699 1,547 1,828 1,976 2,178 476 539 583 609 615 602 592 HMO 1,106 $ 1,215 $ 1,307 $ 1,413 $ 1,557 $
onal HMO 1,399 1,537 1,653 1,787 1,970
ess+ HMO 1,071 1,176 1,266 1,368 1,508
HMO 764 839 903 976 1,076
d y Más 752 826 889 960 1,059
1,151 1,048 1,239 1,339 1,476
1,407 1,282 1,514 1,636 1,804 417 $ 472 $ 511 $ 534 $ 538 $ 527 $ 519 $ 1,236 1,126 1,330 1,438 1,585 449 508 550 575 580 568 559 1,743 1,587 1,876 2,027 2,234 476 539 583 609 615 602 592 873 795 940 1,016 1,120
967 880 1,040 1,124 1,239 417 $ 472 $ 511 $ 534 $ 538 $ 527 $ 519 $ 1,277 1,163 1,374 1,485 1,637 476 539 583 609 615 602 592 Expected Monthly Claims by Medical Plan for Selected Ages - Female Non-Medicare Retirees Medicare Retirees
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Plan not available to Medicare retirees
Claims not developed for Medicare Advantage plans
Plan not available to Medicare retirees
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Claims not developed for Medicare Advantage plans
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 27 Supporting Information
(Continued)
Section 3 - Actuarial Methods and Assumptions
Economic Assumptions
Long Term Return on Assets 5.9% as of June 30, 2024 and 5.6% as of June 30, 2023 Discount Rate 5.9% as of June 30, 2024 and 5.6% as of June 30, 2023 General Inflation Rate 2.5% per year
Salary Increase 3.0% per year. Since benefits do not depend on salary, this is used to allocate the cost of benefits between service years and to determine the amortization payment component of the
Actuarially Determined Contributions.

Healthcare Trend Medical plan premiums and estimated claims costs by age are assumed to increase once each year. The increases over the prior year’s levels are assumed to be effective on the dates shown below:

The healthcare trend shown above was developed using the Getzen Model 2023 published by the Society of Actuaries using the following settings: CPI 2.5%; Real GDP Growth 1.4%; Excess Medical Growth 1.0%; Expected Health Share of GDP in 2032 20%; Resistance Point 21%; Year after which medical growth is limited to growth in GDP 2075.

The PEMHCA minimum employer contribution is assumed to
increase by 4.0% per year.

Effective
January 1
Premium
Increase
Effective
January 1
Premium
Increase
2025 Actual 2044-2049 4.7%
2026 6.0% 2050-2059 4.6%
2027 5.5% 2060-2065 4.5%
2028 5.4% 2066-2067 4.4%
2029 5.3% 2068-2069 4.3%
2030 5.2% 2070 4.2%
2031 5.1% 2071-2072 4.1%
2032-2037 5.0% 2073-2074 4.0%
2038-2039 4.9% 2075 3.9%
2040-2043 4.8% & Later 3.9%
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 28 Supporting Information
(Continued)
Section 3 - Actuarial Methods and Assumptions
Participant Election Assumptions
Participation Rate Active participants: The rates at which employees are assumed to elect coverage in retirement vary by the level of benefit for which they qualify:
(a) Those entitled to only the PEMHCA benefit are assigned a 55% probability of electing coverage in retirement, if
currently covered by a CalPERS medical plan, and 15% if not currently covered under a CalPERS medical plan.
(b) 100% of those entitled to a benefit greater than the PEMHCA benefit are assumed to continue coverage.

All employees are assumed to maintain the same medical plan election in retirement, or, if currently waiving coverage, to select the Kaiser Region 3 plan.

Retired participants: Existing medical plan elections are assumed to be continued until the retiree’s death. For current retirees under age 65 receiving additional MOU benefits, only 60% are assumed to continue coverage after age 65.

Spouse Coverage Active employees:

Surviving spouses are assumed to retain coverage until their death. Husbands are assumed to be 3 years older than their wives.

Retired participants: Existing elections for spouse coverage are assumed to be continued until the spouse’s death. Actual spouse ages are used, where known; if not, husbands are assumed to be 3 years older than their wives.

Spouse gender is assumed to be the opposite of the employee.

Medicare Eligibility Absent contrary data, all individuals are assumed to be eligible for Medicare Parts A and B at age 65.

Benefit Level
% Spouse
Coverage
Temporary
Additional Benefit
55%
MEC Only 40%
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 29 Supporting Information
(Concluded)
Section 3 - Actuarial Methods and Assumptions
Demographic Assumptions
Demographic actuarial assumptions used in this valuation are based on the 2021 experience study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements.

Mortality Improvement MacLeod Watts Scale 2022 applied generationally from 2017 (see Appendices)
Service Retirement Rates
For sample rates of assumed mortality, service and disability retirement and separation (termination) prior to retirement at selected ages, please refer to our June 30, 2023, valuation report and/or the CalPERS experience study referenced above.

Software and Models Used in the Valuation
ProVal - MacLeod Watts utilizes ProVal, a licensed actuarial valuation software product from Winklevoss Technologies (WinTech) to project future retiree benefit payments and develop the OPEB liabilities presented in this report. ProVal is widely used by the actuarial community. We review results at the plan level and for individual sample lives and find them to be reasonable and consistent with the results we expect. We are not aware of any material inconsistencies or limitations in the software that would affect this actuarial valuation.

Age-based premiums model – developed internally and reviewed by an external consultant at the time it was developed. See discussion on Development of Age-Related Medical Premiums and Appendices.

Getzen model – published by the Society of Actuaries; used to derive medical trend assumptions described earlier in this section.

Changes in assumptions or methods since the prior Measurement Date Trust rate of return
and discount rate Increased from 5.6% to 5.9%, net of plan investment expenses, based on updated projected annual benefits applied to the most recent CalPERS information on expected investment returns (June 2024).

Plan Experience Reflected on the Measurement Date
Medical Premiums Actual 2025 premium rates were significantly higher than expected; we reflected the actual increases for each plan in this report in lieu of an assumed 6.5% increase over the 2024 premium rates.

Safety Misc
Classic: 3% @ 55 2.5% @ 55
PEPRA: 2.7% @ 57 2% @ 62
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 30 Appendix 1: Important Background Information
General Types of Other Post-Employment Benefits (OPEB)
Post-employment benefits other than pensions (OPEB) comprise a part of compensation that employers offer for services received. The most common OPEB are medical, prescription drug, dental, vision, and/or life insurance coverage. Other OPEB may include outside group legal, long-term care, or disability benefits outside of a pension plan. OPEB does not generally include COBRA, vacation, sick leave (unless converted to defined benefit OPEB), or other direct retiree payments.

A direct employer payment toward the cost of OPEB benefits is referred to as an “explicit subsidy”. In addition, if claims experience of employees and retirees are pooled when determining premiums, retiree premiums are based on a pool of members which, on average, are younger and healthier. For certain types of coverage such as medical insurance, this results in an “implicit subsidy” of retiree premiums by active employee premiums since the retiree premiums are lower than they would have been if retirees were insured separately. GASB 75 and Actuarial Standards of Practice generally require that an implicit subsidy of retiree premium rates be valued as an OPEB liability.

This chart shows the sources of funds needed to cover expected medical claims for pre-Medicare retirees. The portion of the premium paid by the Agency does not impact the amount of the implicit subsidy.

Under GASB 45, for actuarial valuations dated prior to March 31, 2015, an exception allowed plan employers with a very small membership in a large “community-rated” healthcare program to avoid reporting of implicit subsidy liability. Following a change in Actuarial Standards of Practice and in accordance with GASB 75 requirements, this exception is no longer available.

Valuation Process
The valuation was based on employee census data and benefits provided by the City. A summary of the employee data is provided in Section 1 and a summary of the benefits provided under the Plan is provided in Section 2. While individual employee records were reviewed to verify that they are reasonable in various respects, the data has not been audited, and we have otherwise relied on the City as to its accuracy. The valuation was based on the actuarial methods and assumptions described in Section 3.

In developing the projected benefit values and liabilities, we first determine an expected premium or benefit stream over the employee’s future retirement. Benefits may include both direct employer payments (explicit subsidies) and/or an implicit subsidy, arising when retiree premiums are expected to be subsidized by active employee premiums. The projected benefit streams reflect assumed trends Expected retiree claims
Premium charged for retiree coverage Covered by higher
active premiums
Retiree portion of premium Agency portion of premium
Explicit subsidy Implicit subsidy
Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 31 Important Background Information
(Continued)
in the cost of those benefits and assumptions as to the expected date(s) when benefits will end. We then apply assumptions regarding:
y The probability that each individual employee will or will not continue in service to receive benefits.
y The probability of when such retirement will occur for each retiree, based on current age, service and employee type; and
y The likelihood that future retirees will or will not elect retiree coverage (and benefits) for themselves and/or their dependents.

We then calculate the present value of these benefits by discounting the value of each future expected benefit payment, multiplied by the assumed expectation that it will be paid, back to the valuation date using the discount rate. These benefit projections and liabilities have a very long time horizon. The final payments for currently active employees may not be made for many decades.

The resulting present value for each employee is allocated as a level percent of payroll each year over the employee’s career using the entry age normal cost method and the amounts for each individual are then summed to get the results for the entire plan. This creates a cost expected to increase each year as payroll increases. Amounts attributed to prior fiscal years form the “Total OPEB Liability”. The OPEB cost allocated for active employees in the current year is referred to as “Service Cost”.

Where contributions have been made to an irrevocable OPEB trust, the accumulated value of trust assets (“Fiduciary Net Position”) is applied to offset the “Total OPEB Liability”, resulting in the “Net OPEB Liability”. If a plan is not being funded, then the Net OPEB Liability is equal to the Total OPEB Liability.

It is important to remember that an actuarial valuation is, by its nature, a projection of one possible future outcome based on many assumptions. To the extent that actual experience is not what we assumed, future results will differ. Some possible sources of future differences may include:
x A significant change in the number of covered or eligible plan members; x A significant increase or decrease in the future premium rates; x A change in the subsidy provided by the Agency toward retiree premiums; x Longer life expectancies of retirees;
x Significant changes in estimated retiree healthcare claims by age, relative to healthcare claims for active employees and their dependents;
x Higher or lower returns on plan assets or contribution levels other than were assumed; and/or x Changes in the discount rate used to value the OPEB liability Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 32 Important Background Information
(Continued)
Requirements of GASB 75
The Governmental Accounting Standards Board (GASB) issued GASB Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes standards for the measurement, recognition, and disclosure of OPEB expense and related liabilities (assets), note disclosures, and required supplementary information (RSI) in the financial reports of state and local governmental employers.

Important Dates
GASB 75 requires that the information used for financial reporting falls within prescribed timeframes.

Actuarial valuations of the total OPEB liability are generally required at least every two years. If a valuation is not performed as of the Measurement Date, then liabilities are required to be based on roll forward procedures from a prior valuation performed no more than 30 months and 1 day prior to the most recent year-end. In addition, the net OPEB liability is required to be measured as of a date no earlier than the end of the prior fiscal year (the “Measurement Date”).

Recognition of Plan Changes and Gains and Losses
Under GASB 75, gains and losses related to changes in Total OPEB Liability and Fiduciary Net Position are recognized in OPEB expense systematically over time. x Timing of recognition: Changes in the Total OPEB Liability relating to changes in plan benefits are recognized immediately (fully expensed) in the year in which the change occurs. Gains and Losses are amortized, with the applicable period based on the type of gain or loss. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. x Deferred recognition periods: These periods differ depending on the source of the gain or loss.

Difference between projected
and actual trust earnings: 5-year straight-line recognition All other amounts: Straight-line recognition over the expected average remaining service lifetime (EARSL) of all members that
are provided with benefits, determined as of the
beginning of the Measurement Period. In determining
the EARSL, all active, retired and inactive (vested)
members are counted, with the latter two groups having
0 remaining service years.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 33 Important Background Information
(Continued)
Implicit Subsidy Plan Contributions
An implicit subsidy occurs when estimated retiree claims exceed the premiums charged for retiree coverage. When this occurs, we expect part of the premiums paid for active employees to cover a portion of retiree claims. This transfer represents the current year’s “implicit subsidy”. Because GASB 75 treats payments to an irrevocable trust or directly to the insurer as employer contributions, each year’s implicit subsidy is treated as a contribution toward the payment of retiree benefits.

The following hypothetical example illustrates this treatment:

The example above shows that total payments toward active and retired employee healthcare premiums is the same, but for accounting purposes part of the total is shifted from actives to retirees.

This shifted amount is recognized as an OPEB contribution and reduces the current year’s premium expense for active employees.

Discount Rate
When the financing of OPEB liabilities is on a pay-as-you-go basis, GASB 75 requires that the discount rate used for valuing liabilities be based on the yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). When a plan sponsor makes regular, sufficient contributions to a trust in order to prefund the OPEB liabilities, GASB 75 allows use of a rate up to the expected rate of return of the trust.

Therefore, prefunding has an advantage of potentially being able to report overall lower liabilities due to future expected benefits being discounted at a higher rate.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 34 Important Background Information
(Concluded)
Actuarial Funding Method and Assumptions
The “ultimate real cost” of an employee benefit plan is the value of all benefits and other expenses of the plan over its lifetime. These expenditures are dependent only on the terms of the plan and the administrative arrangements adopted, and as such are not affected by the actuarial funding method.

The actuarial funding method attempts to spread recognition of these expected costs on a level basis over the life of the plan, and as such sets the “incidence of cost”. GASB 75 specifically requires that the actuarial present value of projected benefit payments be attributed to periods of employee service using the Entry Age Actuarial Cost Method, with each period’s service cost determined as a level percentage of pay.

The results of this report may not be appropriate for other purposes, where other assumptions, methodology and/or actuarial standards of practice may be required or more suitable.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 35 Appendix 2: MacLeod Watts Age Rating Methodology
Both accounting standards (e.g., GASB 75) and actuarial standards (e.g., ASOP 6) require that expected retiree claims, not just premiums paid, be reflected in most situations where an actuary is calculating retiree healthcare liabilities. Unfortunately, the actuary is often required to perform these calculations without any underlying claims information. In most situations, the information is not available, but even when available, the information may not be credible due to the size of the group being considered.

Actuaries have developed methodologies to approximate healthcare claims from the premiums being paid by the plan sponsor. Any methodology requires adopting certain assumptions and using general studies of healthcare costs as substitutes when there is a lack of credible claims information for the specific plan being reviewed.

Premiums paid by sponsors are often uniform for all employee and retiree ages and genders, with a drop in premiums for those participants who are Medicare-eligible. While the total premiums are expected to pay for the total claims for the insured group, on average, the premiums charged would not be sufficient to pay for the claims of older insureds and would be expected to exceed the expected claims of younger insureds. An age-rating methodology takes the typically uniform premiums paid by plan sponsors and spreads the total premium dollars to each age and gender intended to better approximate what the insurer might be expecting in actual claims costs at each age and gender.

The process of translating premiums into expected claims by age and gender generally follows the steps below.

1. Obtain or Develop Relative Medical Claims Costs by Age, Gender, or other categories that are deemed significant. For example, a claims cost curve might show that, if a 50-year-old male has $1 in claims, then on average a 50-year-old female has claims of $1.25, a 30-year male has claims of $0.40, and an 8-year-old female has claims of $0.20. The claims cost curve provides such relative costs for each age, gender, or any other significant factor the curve might have been developed to reflect. Section 3 provides the source of information used to develop such a curve and shows sample relative claims costs developed for the plan under consideration.

2. Obtain a census of participants, their chosen medical coverage, and the premium charged for their coverage. An attempt is made to find the group of participants that the insurer considered in setting the premiums they charge for coverage. That group includes the participant and any covered spouses and children. When information about dependents is unavailable, assumptions must be made about spouse age and the number and age of children represented in the population. These assumptions are provided in Section 3.

3. Spread the total premium paid by the group to each covered participant or dependent based on expected claims. The medical claims cost curve is used to spread the total premium dollars paid by the group to each participant reflecting their age, gender, or other relevant category. After this step, the actuary has a schedule of expected claims costs for each age and gender for the current premium year. It is these claims costs that are projected into the future by medical cost inflation assumptions when valuing expected future retiree claims.

The methodology described above is dependent on the data and methodologies used in whatever study might be used to develop claims cost curves for any given plan sponsor. These methodologies and assumptions can be found in the referenced paper cited as a source in the valuation report.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 36 Appendix 3: MacLeod Watts Mortality Projection Methodology Actuarial standards of practice (e.g., ASOP 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, and ASOP 6, Measuring Retiree Group Benefits Obligations) indicate that the actuary should reflect the effect of mortality improvement (i.e., longer life expectancies in the future), both before and after the measurement date. The development of credible mortality improvement rates requires the analysis of large quantities of data over long periods of time. Because it would be extremely difficult for an individual actuary or firm to acquire and process such extensive amounts of data, actuaries typically rely on large studies published periodically by organizations such as the Society of Actuaries or Social Security Administration.

As noted in a recent actuarial study on mortality improvement, key principles in developing a credible mortality improvement model would include the following:
(1) Short-term mortality improvement rates should be based on recent experience. (2) Long-term mortality improvement rates should be based on expert opinion. (3) Short-term mortality improvement rates should blend smoothly into the assumed long-term rates over an appropriate transition period.

The MacLeod Watts Scale 2022 was developed from a blending of data and methodologies found in two published sources: (1) the Society of Actuaries Mortality Improvement Scale MP-2021 Report, published in October 2021 and (2) the demographic assumptions used in the 2021 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, published August 2021.

MacLeod Watts Scale 2022 is a two-dimensional mortality improvement scale reflecting both age and year of mortality improvement. The underlying base scale is Scale MP-2021 which has two segments – (1) historical improvement rates for the period 1951-2017 and (2) an estimate of future mortality improvement for years 2018-2020 using the Scale MP-2021 methodology but utilizing the assumptions obtained from Scale MP-2015. The MacLeod Watts scale then transitions from the 2020 improvement rate to the Social Security Administration (SSA) Intermediate Scale linearly over the 10-year period 2021-2030. After this transition period, the MacLeod Watts Scale uses the constant mortality improvement rate from the SSA Intermediate Scale from 2030-2044. The SSA’s Intermediate Scale has a final step down in 2045 which is reflected in the MacLeod Watts scale for years 2045 and thereafter.

Over the ages 95 to 118, the SSA improvement rate is graded to zero.

Scale MP-2021 can be found at the SOA website and the projection scales used in the 2021 Social Security Administrations Trustees Report at the Social Security Administration website.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 37 Glossary
Actuarial Funding Method – A procedure which calculates the actuarial present value of plan benefits and expenses, and allocates these expenses to time periods, typically as a normal cost and an actuarial accrued liability
Actuarial Present Value of Projected Benefits (APVPB) – The amount presently required to fund all projected plan benefits in the future. This value is determined by discounting the future payments by an appropriate interest rate and the probability of nonpayment.

CalPERS – Many state governments maintain a public employee retirement system; CalPERS is the California program, covering all eligible state government employees as well as other employees of other governments within California who have elected to join the system Defined Benefit (DB) – A pension or OPEB plan which defines the monthly income or other benefit which the plan member receives at or after separation from employment Defined Contribution (DC) – A pension or OPEB plan which establishes an individual account for each member and specifies how contributions to each active member’s account are determined and the terms of distribution of the account after separation from employment Discount Rate – Interest rate used to discount future potential benefit payments to the valuation date.

Under GASB 75, if a plan is prefunded, then the discount rate is equal to the expected trust return. If a plan is not prefunded (pay-as-you-go), then the rate of return is based on a yield or index rate for 20- year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher.

Expected Average Remaining Service Lifetime (EARSL) – Average of the expected remaining service lives of all employees that are provided with benefits through the OPEB plan (active employees and inactive employees), beginning in the current period
Entry Age Actuarial Cost Method – An actuarial funding method where, for each individual, the actuarial present value of benefits is levelly spread over the individual’s projected earnings or service from entry age to the last age at which benefits can be paid
Excise Tax – The Affordable Care Act created an excise tax on the value of employer sponsored coverage which exceeds certain thresholds (“Cadillac Plans”). The tax was repealed in December 2019.

Explicit Subsidy – The projected dollar value of future retiree healthcare costs expected to be paid directly by the Employer, e.g., the Employer’s payment of all or a portion of the monthly retiree premium billed by the insurer for the retiree’s coverage Fiduciary Net Position –The value of trust assets used to offset the Total OPEB Liability to determine the Net OPEB Liability.

Government Accounting Standards Board (GASB) – A private, not-for-profit organization which develops generally accepted accounting principles (GAAP) for U.S. state and local governments.

Health Care Trend – The assumed rate(s) of increase in future dollar values of premiums or healthcare claims, attributable to increases in the cost of healthcare; contributing factors include medical inflation, frequency or extent of utilization of services and technological developments.

Implicit Subsidy – The projected difference between future retiree claims and the premiums to be charged for retiree coverage; this difference results when the claims experience of active and retired employees are pooled together, and a ‘blended’ group premium rate is charged for both actives and retirees; a portion of the active employee premiums subsidizes the retiree premiums.

Other Post-Employment Benefit Program of the City of Sierra Madre GASB 75 Actuarial Report for the Fiscal Year Ending June 30, 2025 38 Glossary
(Continued)
Net OPEB Liability (NOL) – The liability to employees for benefits provided through a defined benefit OPEB. Only assets administered through a trust that meet certain criteria may be used to reduce the Total OPEB Liability.

Net Position – The Impact on Statement of Net Position is the Net OPEB Liability adjusted for deferred resource items
OPEB Expense – The OPEB expense reported in the Agency’s financial statement. OPEB expense is the annual cost of the plan recognized in the financial statements.

Other Post-Employment Benefits (OPEB) – Post-employment benefits other than pension benefits, most commonly healthcare benefits but also including life insurance if provided separately from a pension plan
Pay-As-You-Go (PAYGO) – Contributions to the plan are made at about the same time and in about the same amount as benefit payments and expenses coming due PEMHCA – The Public Employees’ Medical and Hospital Care Act, established by the California legislature in 1961, provides community-rated medical benefits to participating public employers.

Among its extensive regulations are the requirements that a contracting Agency contribute toward medical insurance premiums for retired annuitants and that a contracting Agency file a resolution, adopted by its governing body, with the CalPERS Board establishing any new contribution.

Plan Assets – The value of cash and investments considered as ‘belonging’ to the plan and permitted to be used to offset the AAL for valuation purposes. To be considered a plan asset, GASB 75 requires (a) contributions to the OPEB plan be irrevocable, (b) OPEB assets to dedicated to providing OPEB benefit to plan members in accordance with the benefit terms of the plan, and (c) plan assets be legally protected from creditors, the OPEB plan administrator and the plan members.

Public Agency Miscellaneous (PAM) – Non-safety public employees.

Select and Ultimate – Actuarial assumptions which contemplate rates which differ by year initially (the select period) and then stabilize at a constant long-term rate (the ultimate rate) Service Cost – Total dollar value of benefits expected to be earned by plan members in the current year, as assigned by the actuarial funding method; also called normal cost Total OPEB Liability (TOL) – Total dollars required to fund all plan benefits attributable to service rendered as of the valuation date for current plan members and vested prior plan members; a subset of “Actuarial Present Value”
Vesting – As defined by the plan, requirements which when met make a plan benefit nonforfeitable on separation of service before retirement eligibility
TO: Honorable Mayor Parkhurst and Members of the City Council FROM: James Carlson, Senior Analyst
REVIEWED BY: Michael Bruckner, City Manager
DATE: October 14, 2025
SUBJECT: STRATEGIC PLAN UPDATE

STAFF RECOMMENDATION
Staff is recommending that the City Council review and receive and file the October 14, 2025 Strategic Plan Update.

ALTERNATIVES

1. The City Council provide direction to staff regarding the Update.

EXECUTIVE SUMMARY
The last review of the City’s Strategic Plan was presented to the City Council on April 8, 2025.

At that meeting, an enhanced version of the Plan that included numerous new detailed descriptions of items such as “Key Activities” and “Desired Outcomes” were included and expanded the Strategic Plan to 95 pages. Staff is returning to the original format in which the Plan is 17 pages and includes appendices from Public Outreach closing reports. Per City Council’s Direction, staff has also included a list of accomplished items as a new appendix.

Staff recommends that the City Council review and receive and file the October 14, 2025 Strategic Plan Update.

City of Sierra Madre

AGENDA REPORT
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer

ANALYSIS
Background
The City of Sierra Madre’s elected leaders and management staff met and participated in strategic planning events since June of 2022. Initial efforts included the City Council, City Manager, and City Department Heads. The first steps in the strategic planning process included interviews with the City Council and Department Heads. Interviews were based upon, but not limited to the following questions:

1. What do you believe are the City’s greatest strengths (internal and external)?

2. What do you believe are the City’s greatest weaknesses (internal)? What do you believe are the City’s greatest threats (external)?

3. What are the three most critical issues facing the City?

4. What themes or issues should be addressed in the strategic plan?

5. What is the most important outcome that you would like to see emerge from the strategic planning process? Why do you think this is so important? The City Council directed staff on updating the City’s Mission and Vision Statements and Core Values, which are reflected in the current update.

Strategic Priorities were also provided to staff as follows:
x Organizational Stability
x Public Safety
x Infrastructure and Growth Management
x Community Enrichment
x Environmental Responsibility
Each Department has provided updates to their associated portions of the Strategic Plan and is included in the updated Plan. The FY2025/2026 Budget Book was developed based on the Goals, Objectives, Initiatives, and Projects outlined on pages 15 through 21 of the Budget Book.

Departmental Budget Narratives in the Budget Book were matched directly with these strategic objectives, ensuring alignment between financial planning and the City’s identified priorities.

ENVIRONMENTAL(CEQA)
CEQA does not apply to the strategic planning process.

STRATEGIC PLAN CORRELATION
This update meets the overall goal of strategic planning.

FISCAL IMPACT
There is no fiscal impact to the strategic planning process.

PUBLIC NOTICE
This item has been noticed through the regular agenda notification process. Copies of this report can be accessed on the City’s website at www.sierramadre.ca.gov ATTACHMENTS:

1. October 14, 2025 Strategic Plan

2. Departmental Public Outreach Closing Reports

3. October 14, 2025 List of Items Completed

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Compilation of completed Action Steps
October 14, 2025
PS 1.1 E – Fire Chief will analyze and determine the need for a part-time EOC Coordinator to be included in budgetary planning for 24/25 (and future years). This was completed.

PS 1.2 A – FD Training Officer shall identify strengths and weaknesses of training programs to be submitted to Fire Chief by the First Quarter of 2024. This has been completed.

PS 1.2 C – Fire Chief will develop and maintain a strategy to maintain an 85% Paramedic Licensure status for Fire personnel by First Quarter of 2024. This has been completed and expected to remain at the 85% goal.

OS 2.4 A – The updated fee schedule study is to be presented to the city council in the Third Quarter of 2024. This was completed.

PS 3.2 A – The Natural Resources Commission will update the City’s Wildlife Management Plan with input from the City Council, the Department of Fish and Wildlife, and the SMPD as needed.

Completed in July of 2024.

PS 3.2 C – The City’s Public Works Department will maintain the recently amended Solid Waste Contract, providing for the introduction and continued maintenance of Bear-Resistant Organics Recycling barrels to all residential customers. Completed First Quarter of 2024.

PS 3.3 C – Review of Noise Ordinance and processes/enforcement by Planning Commission and City Council by the Third Quarter of 2023. Natural Resources Commission will consider gaspowered landscaping equipment and provide a recommendation to City Council by the First Quarter of 2024. This has been completed.

PS 4.1 B – The Police Department and Public Works Department shall coordinate to obtain a thirdparty contractor to provide a new traffic survey for selected major streets by Fourth Quarter of 2024. This has been completed.

PS 4.2 C – The Department of Public Works will launch the GoSGV Ambassador Electronic Bike Program in the Second Quarter of 2024. Program has been launched, and is administered by staff in the Administrative Services Department and a local volunteer.

IG 1.3 A – Library to open at a temporary location First Quarter of 2024. Completed.

IG 1.3 B – Design Phase to be completed in the First Quarter of 2024. Internal Phase Review is to be completed by the third quarter of 2024. This has been completed.

IG 1.3 C – Construction to begin in the Third Quarter of 2024. This has been completed.

IG 2.1 A – The Planning & Community Preservation Department will continue to work with the San Gabriel Valley Council of Governments to meet the legislative mandates of AB 434 and will provide a recommendation to the City Council by the Third Quarter of 2024. This has been completed.

CE 1.2 B – Complete Sierra Vista Park Playground project and Fitness Area by Third Quarter of 2024. This has been completed.

CE 3.2 C – The Natural Resources Commission will host Earth Day in April at Memorial Park every year. This is completed.

ER 1.1 A – The Department of Public Works will work with the Natural Resources Commission to update the Water Efficient Landscape Ordinance by the Third Quarter of 2025. This has been completed (Direction instead of Ordinance).

ER 1.2 A – Increase AMI participation by 10% by Fourth Quarter of 2025. This has been achieved.

ER 2.4 B – The Planning and Community Preservation Department will implement a plan review process in compliance with the 2022 Solar Access Act (SB 379) by Third Quarter of 2024. This is completed.

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PS 1.2 A – FD Training Officer shall identify strengths and weaknesses of training programs to be submitted to Fire Chief by the First Quarter of 2024. This has been completed.

OS 2.4 A – The updated fee schedule study is to be presented to the city council in the Third Quarter of 2024. This was completed.

PS 3.2 A – The Natural Resources Commission will update the City’s Wildlife Management Plan with input from the City Council, the Department of Fish and Wildlife, and the SMPD as needed.

Completed in July of 2024.

IG 1.3 A – Library to open at a temporary location First Quarter of 2024. Completed.

IG 1.3 B – Design Phase to be completed in the First Quarter of 2024. Internal Phase Review is to be completed by the third quarter of 2024. This has been completed.

IG 1.3 C – Construction to begin in the Third Quarter of 2024. This has been completed.

CE 1.2 B – Complete Sierra Vista Park Playground project and Fitness Area by Third Quarter of 2024. This has been completed.

CE 3.2 C – The Natural Resources Commission will host Earth Day in April at Memorial Park every year. This is completed.

ER 1.2 A – Increase AMI participation by 10% by Fourth Quarter of 2025. This has been achieved.

ER 2.4 B – The Planning and Community Preservation Department will implement a plan review process in compliance with the 2022 Solar Access Act (SB 379) by Third Quarter of 2024. This is completed.

City of Sierra Madre

AGENDA REPORT
TO: Honorable Mayor Parkhurst and Members of the City Council FROM: Brent Bartlett, Fire Chief
REVIEWED BY: Michael Bruckner, City Manager
DATE: October 14, 2025
SUBJECT: ORDINANCE NO. 1486 RELATING TO THE ADOPTION AND AMENDMENTS TO THE 2025 INTERNATIONAL FIRE CODE
AND THE 2025 CALIFORNIA FIRE CODE UPDATES

STAFF RECOMMENDATION
It is recommended that the City Council introduce for first reading Ordinance No. 1486 amending various sections of the Sierra Madre Municipal Code (SMMC) pursuant to the 2025 California Fire Code and 2025 California Wildland Urban Interface Code amendments.

ALTERNATIVES

1. Introduce Ordinance No. 1486 for first reading by title only.

2. Direct staff to revise Ordinance No. 1486 and conduct first reading as amended by title only.

SUMMARY
On January 1, 2026, the state of California will be adopting a new fire code.

Subsequently, the City of Sierra Madre is required to adopt and enforce the same code with local amendments. Currently, the City is enforcing the 2022 California Fire Code with local amendments. There are no proposed new local amendments to the California Fire Code.

The state has also adopted a new code, known as Title 24, Part 7 California Wildland Urban Interface Code, through the California Building Standards Commission. There are no new state or local amendments in the 2025 California Wildland Urban Interface Code, as this new statewide code is merely a reorganization and consolidation of existing statutes, codes, and standards into a single document for ease of use by the authority having jurisdiction, as well as property owners or developers.

Ordinance No. 1486 amends Title 15.24 of the Sierra Madre Municipal Code relating to Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer

Page 2 of 4 ends

the adoption and amendment of the 2025 California Fire Code and 2025 California Wildland Urban Interface Code to meet with State requirements. Additionally, this Ordinance continues all previous amendments from 2022 with no additional changes.

ANALYSIS
Ordinance No. 1486 amends Title15.24 as follows:

Section 1. Section 15.24.010 is amended to adopt the 2025 California Fire Code.

Section 2. Section 15.24.020 is amended to replace the words “International Fire Code” with “California Fire Code”
Section 3. Section 15.24.070 Amendments to the California Fire Code.

Section 101.1 of the California Fire Code is amended to identify “this code” as the Sierra Madre Fire Code.

Section 113.4 identifies fire code violations and penalties as misdemeanors, and may be punishable by administrative, civil, or criminal action.

Section 114.4 identifies failure to comply penalties as misdemeanors, and may be punishable by administrative, civil, or criminal action.

Section 307.4.2 of the California Fire Code is amended to allow the Fire Code Official to order recreational fires to be discontinued if such fires constitute a hazardous condition or if atmospheric conditions reach critical levels.

Section 503.2.1 of the California Fire Code is amended to require new fire access roads to have a minimum width of 26 feet within 25 feet of each side of a fire hydrant. This requirement will prevent the problem of an access road being blocked when a fire engine is utilizing a fire hydrant.

Sections 903.2.1.1, 903.2.1.2, 903.2.1.3, 903.2.1.4, 903.2.1.5, 903.2.2, 903.2.3, 903.2.4, 903.2.5, 903.2.6, 903.2.7, 903.2.8, 903.2.9, 903.2.9.1, 903.2.9.2, 903.2.10 and 903.2.10.1 of the fire code are amended in order to maintain the current fire sprinkler requirements as set forth in Section 15.24.120 of the Sierra Madre Municipal Code.

APPENDIX D-Fire Apparatus Access Roads is adopted and amended to continue to require new fire access roads to have a minimum width of 26 feet within 25 feet of each side of a fire hydrant. This requirement will help prevent the problem of an access road being blocked when a fire engine is utilizing a fire hydrant.

Section 4. Section 15.24.110 is amended to include additional design options for residential fire sprinklers by adding “Section R309 of the California Residential Code”, and continue existing requirements for residential buildings being renovated based on

Page 3 of 4 ends

square footage percentages.

Section 5. Section 15.24.120 is amended to continue to require automatic fire sprinklers in buildings being renovated based on square footage percentages.

Section 6. Section 15.25.010 is established to adopt the 2025 California Wildland Urban Interface Code as published with no amendments.

Sections 7-19. Repeal of Conflicting Ordinances and other legal Code Adoption language.

ENVIRONMENTAL (CEQA)
The proposed action does not constitute as a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be determined with certainty that it will have no impact on the environment.

STRATEGIC PLAN CORRELATION
Ordinance No. 1486 and enforcement of the 2025 California Fire Code and 2025 California Wildland Urban Interface Code is aligned with Goal 2: Public Safety.

PUBLIC NOTICE PROCESS
This item has been noticed though the regular agenda notification process. Notice of the hearing was published consistent with the requirements of Government Code Sections 65090 and 50022.2, including publication of a summary notice of public hearing in the local adjudicated newspaper. Copies of this report can be accessed on the City’s website at sierramadreca.gov.

FINANCIAL REVIEW/SOURCE OF FUNDING
There is no impact to the General Fund. The adoption of Ordinance No. 1486 to enforce the 2025 California Fire Code and the 2025 California Wildland Urban Interface Code, along with local amendments, will not result in any direct fiscal impact to the City of Sierra Madre. The ordinance involves the continuation of the current code enforcement practices and does not introduce any new local amendments or operational costs. Staff time has already been incurred in preparing the report and draft ordinance; however, no additional funds or expenditures are required for implementation beyond normal administrative duties. Therefore, the proposed action is considered fiscally neutral for the City.

Page 4 of 4 ends

Attachments
Attachment 1: City Council Ordinance No. 1486 - 2025 Fire Code & California Wildland Urban Interface Code Adoption
Exhibit A: Sierra Madre Fire Department 2025 Fire Code & California Wildland Urban Interface Code Findings

City of Sierra Madre

AGENDA REPORT
TO: Honorable Mayor Parkhurst and Members of the City Council FROM: Clare Lin, Director of Planning & Community Preservation Sarkis Nazerian, Building Official
REVIEWED BY: Michael Bruckner, City Manager
DATE: October 14, 2025
SUBJECT: ORDINANCE NO. 1487 AMENDING THE MUNICIPAL

CODE TO AMEND AND ADOPT BY REFERENCE THE
2025 CALIFORNIA BUILDING STANDARDS CODE WITH

CERTAIN EXCEPTIONS, MODIFICATIONS AND

ADDITIONS

RECOMMENDATION
It is recommended that the City Council introduce for first reading by title only, recommending adoption of Ordinance No. 1487 pursuant to the 2025 California Building Standards Code amendments.

ALTERNATIVES

1. Introduce Ordinance No. 1487 of first reading by title only.

2. Direct staff to revise Ordinance No. 1487 and conduct first reading as amended by title only.

EXECUTIVE SUMMARY
The California Building Standards Code (Title 24, California Code of Regulations) serves as the basis for the design and construction of buildings in California. All parts of the Code are updated every three years with the goal of improved safety, sustainability, maintaining consistency, new technology and construction methods, and reliability.

On January 1, 2026, the updated California Building Code will become effective statewide.

Subsequently, the City of Sierra Madre is required to adopt and enforce the same code.

Currently, the City is enforcing the 2022 California Building Standards Code with local amendments.

Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer

Page 2 of 4 ends

Ordinance No. 1487 amends the Sierra Madre Municipal Code to adopt by reference the 2025 California Building Standards Code to meet State requirements. In accordance with AB130, local amendments will be limited to what is already existing in the municipal code and will be carried forward with the 2025 codes.

ANALYSIS
The following codes are mandated by the State of California Building Standards Commission Information Bulletin 25.01, for local adoption by January 1, 2026. Ordinance No. 1487 amends SMMC Chapters: 15.02, 15.04, 15.06, 15.08, 15.16, 15.20, 15.22, 15.26,

15.30, 15.34 and 15.36 as follows:

California Building Standards Code SMMC Chapter
2025 Administrative Code 15.02
2025 California Building Code, Volumes 1 and 2 15.04
2025 California Residential Code 15.04, 15.06
2025 California Mechanical Code 15.04
2025 California Electrical Code 15.04
2025 California Plumbing Code 15.04
2025 California Historical Code 15.04
2025 California Fire Code 15.24*
2025 California Wildland-Urban Interface Code 15.25*
2025 California Existing Building Code 15.04
2025 California Green Building Standards Code 15.04, 15.30 2025 California Energy Code 15.04
2025 California Referenced Standards Code 15.04
* The 2025 California Fire Code and 2025 California Wildland-Urban Interface Code listed above will be introduced by the Fire Department in a separate staff report.

Sierra Madre Municipal Code currently adopts by reference each of the California Building Code Standards listed above under individual chapters of Title 15. Ordinance No. 1487 consolidates the adoption by reference of all California Building Code Standards under Section 15.04.010 and retains local amendments where applicable.

The State adopted the 2024 Editions of the International Codes as the basis for the 2025 California Codes. Likewise, the 2024 Editions of the Uniform Mechanical and Plumbing Codes developed by the International Association of Plumbing and Mechanical Officials serve as the basis for the 2025 California Plumbing and Mechanical Codes. The 2023 Edition of the National Electrical Code developed by the National Fire Protection Association are the basis of the corresponding 2025 Edition of the California Electrical Code.

The California Residential Code (CRC) will address the structural and life safety aspects of one- and two-family dwellings and townhouses not more than three stories. Electrical, plumbing, and mechanical conditions will still be addressed by the appropriate California Code Books.

Page 3 of 4 ends

The California Green Building Standards Code addresses such conditions as site development, water savings, recycling, and material selection. In addition, issues such as moisture control, interior and exterior air quality and compliance with California Title 24 requirements as addressed. Environmental quality issues of concern involve the use of materials that produce volatile organic compounds such as composite wood products, paints, adhesives, and carpets.

The proposed amendments are added to existing chapters of Title 15 of the Sierra Madre Municipal Code by adding provisions of the 2025 California Code of Regulations.

The City established a Demolition Permits procedure under Sierra Madre Municipal Code Section 15.04.115, which amends Section 105.7 of the California Building Code.

Established in 2001 under Ordinance No. 1142, the municipal code maintained a thirtyday waiting period on the issuance of a demolition permit beginning on the date an application is made to the City. Since the adoption of the 2022 California Code Regulations, a number of state laws were passed that limit the timeline for which a “post-entitlement” permit, such as a demolition permit, shall be issued to 15 business days. Therefore, additional amendments to municipal code section 15.04.115 are recommended to eliminate the thirty-day waiting period for demolition permits and to modify the provisions for demolitions of historic structures consistently with appeals procedures regulated under the Zoning Code.

ENVIRONMENTAL (CEQA)
The project qualifies for an exemption from the California Environmental Quality Act review pursuant to Title 14, Section 15061(b)(3) of the California Code of Regulations as it can be seen with certainty that there is no possibility the adoption of the Ordinance may have a significant effect on the environment, because it will enforce the California Building Standards Code (Title 24 California Code of Regulations) that serve as the basis for the design and construction of buildings in California to improve safety, sustainability, maintaining consistency, new technology and construction methods, and reliability.

STRATEGIC PLAN CORRELATION
Adoption of Ordinance No. 1487 is directly aligned with the City’s Strategic Plan Goal 2:

Public Safety – Objective 2.3 (Environmental Management & Code Enforcement). By adopting and enforcing the 2025 California Building Standards Code with local amendments, the City ensures that construction and development within Sierra Madre meet the highest standards of safety, consistency, and sustainability. This action strengthens public safety, promotes responsible growth management, and ensures compliance with state-mandated building practices.

The ordinance also advances Goal 1: Organizational Sustainability – Objective 1.2 (Fiscal Stability & Long-Range Planning), by maintaining alignment with statewide regulatory frameworks and reducing future liability exposure through consistent code enforcement.

Page 4 of 4 ends

FINANCIAL REVIEW/SOURCE OF FUNDING
There is no impact to the General Fund. Staff costs associated with preparation and implementation of the ordinance are absorbed within the existing Planning and Community Preservation Department budget. Future costs related to enforcement will continue to be offset by plan review and permit fees collected through the City’s Fiscal Year 2025/2026 Fee Schedule. No new funding sources are required.

PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. This item has been noticed though the regular agenda notification process. Notice of the hearing was published consistent with the requirements of Government Code Sections 65090 and 50022.2, including publication of a summary notice of public hearing in the local adjudicated newspaper. Copies of this report are available at the City Hall public counter, at the Sierra Madre Public Library, and can be accessed on the City’s website at SierraMadreCA.gov.

Attachments
Attachment 1: City Council Ordinance No. 1487 - 2025 California Building Standards Code Adoption
Exhibit A: Sierra Madre Building Department 2025 Building Code Findings 412243.5
ORDINANCE NO. 1487

AN ORDINANCE OF THE CITY OF SIERRA MADRE AMENDING
VARIOUS CHAPTERS OF TITLE 15 (BUILDINGS AND

CONSTRUCTION) OF THE SIERRA MADRE MUNICIPAL CODE
TO ADOPT BY REFERENCE THE 2025 CALIFORNIA BUILDING

STANDARDS CODES WITH CERTAIN EXCEPTIONS,

MODIFICATIONS, AND ADDITIONS
WHEREAS, the City Council of the City of Sierra Madre does hereby find that there is a need to enforce the most current editions of the California Building Standards Code, with the local amendments recited herein for regulating and controlling the design, erection, construction, enlargement, installation, alteration, repair, relocation, removal, use, occupancy, demolition, conversion, height, area, location, maintenance, and quality of materials of all buildings and structures and plumbing, mechanical, electrical and fire suppression systems and certain equipment’s within the City;

WHEREAS, pursuant to sections 17922, 17958, 17958.5, and 17958.7 of the California Health & Safety Code, the City may adopt the provisions of the Building, Residential, Green Building Standards, Energy, Referenced Standards Plumbing, Mechanical and Electric Codes, with certain amendments to the provisions of the codes which are reasonably necessary to protect the health, wealth and safety of citizens of Sierra Madre because of local climatic, geological and topographical conditions;
WHEREAS, the City Council of the City of Sierra Madre made the factual findings outlined in Exhibit 1 attached hereto relating to the amendments to the uniform codes recited herein in accordance with Health & Safety Code section 18941.5; and
WHEREAS, the City Council does hereby further find that the southern California region, which includes the City, is within a very active seismic area and local soil conditions can be highly expansive and subject to local topographic considerations including extensive hillside construction that is prone to erosion.

THEREFORE, THE CITY COUNCIL OF THE CITY OF SIERRA MADRE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. Amendment. Chapter 15.02 (Administrative Code) of Title 15 (Buildings and Construction) of the Sierra Madre Municipal Code is amended to read as follows:

Chapter 15.02 - ADMINISTRATION
412243.5

15.02.010 – Adoption and Filing
Except as herein provided by specific changes, the administrative, organizational and enforcement for the technical codes which regulate the site preparation, construction, alteration, moving, demolition, repair, use and occupancy of buildings, structures and building service equipment within the city shall be in accordance with the provisions and in the manner prescribed in the administrative provisions of each part of the 2025 California Building Standards Code.

15.02.012 – Building Code Designation.

This ordinance shall be known and cited as the City of Sierra Madre Building Code for Building Construction Regulation and will be referred to herein as this Code.

15.02.014 – Creation of Enforcement Agency.

There has been established heretofore in this jurisdiction a code enforcement agency entitled, the Planning and Community Preservation Department which appoints a Building Official who shall be authorized to enforce the provisions of this code.

15.02.020 - Appeals procedure.

Whenever the building official disapproves an application or refuses to grant a permit applied for, or renders a decision regarding the suitability of alternate materials or methods of construction, the applicant may appeal from the decision of the building official. All appeals must be filed with the city clerk within 30 days of the date of the building official’s written decision. An appeal shall be accompanied by a filing fee in an amount determined from time to time by city council resolution. A hearing shall be held within 60 days of the filing of the appeal, with notice of the appeal provided by the city clerk.

15.02.030 - Board of appeals.

In order to hear appeals, there shall be and there is hereby created a board of appeals, composed of the city council or its designees. Appellate review under this chapter shall be de novo, and the board of appeals shall consider all pertinent materials, including all documents constituting the administrative record. The board of appeals shall render a decision within thirty days of a hearing date. The city clerk shall mail notice of the board of appeal’s decision to the appellant within five business days after the date of the decision.

The city clerk shall be the secretary to the Board. The Board may adopt reasonable rules and regulations for conducting its investigations and shall 412243.5
render all its decisions and findings on contested matters, in writing to the building official, with a duplicate copy thereof to any appellant or contestant affected by any such decision of findings, and may recommend to the City Council such new legislation, if any, as is consistent therewith.

The City Council may prescribe by resolution, to employ at the cost and expense of the City, such qualified individuals as the council, in its discretion, may deem reasonably necessary in order to assist it in its investigation and in making its findings and decisions.

15.02.040 – Violations
It shall be unlawful for any person, firm or corporation to erect, construct, enlarge, alter, repair, move, improve, remove, convert, or demolish, equip, use, occupy, or maintain, any building or structure in the City, or cause same to be done, contrary to or in violation of any of the provisions of this chapter. Any person, firm, or corporation violating any of the provisions of this Ordinance, shall be deemed guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this Ordinance is committed, continued, or permitted, and upon conviction of any such violation such persons shall be punished by a fine of not more than one thousand dollars ($1,000) or double the permit fee whichever is greater or by imprisonment for not more than one (1) year, or by both such fine and imprisonment.

In addition to the above penalty provisions, violation of any of the provisions of this chapter may be subject to the administrative proceedings set forth in Chapter 1.18 of this code.

SECTION 2. Amendment. Chapter 15.04 (Building Code and Permits) of Title 15 (Buildings and Construction) of the Sierra Madre Municipal Code is amended to read as follows:

Chapter 15.04 - BUILDING CODE AND PERMITS

15.04.010 - Adoption of the 2025 California Building Standards Code.

California Building Codes adopted. California code of Regulation Title 24 Parts 1 through 12 consisting of the 2025 California Administrative Code; 2025 California Building Code Volume 1 and 2 with all Appendix Chapters based on the 2024 International Building Code as published by the International Code Council ; 2025 California Residential Code with all Appendix Chapters based on the 2024 International Residential Code as published by the International Code Council ; 2025 California Electrical Code based on the 2023 National Electrical Code as published by the National Fire Protection Association; 2025 California Mechanical Code based on the 2024 Uniform Mechanical Code as published by the International Association of Plumbing and Mechanical 412243.5
Officials; 2025 California Plumbing Code based on the 2024 Uniform Plumbing Code as published by the International Association of Plumbing and Mechanical Officials; 2025 California Green Building Standards Code; 2025 California Historical Building Code; 2025 California Existing Building Code based on the 2024 International Existing Building Code as published by the International Code Council; 2025 California Referenced Standards Code; 2025 California Fire Code; 2025 California Wildland-Urban Interface Code based on the 2024 International Wildland-Urban Interface Code. The provisions of these construction codes as amended by this chapter shall constitute the building regulations of the city of Sierra Madre.

One copy of all the above codes and standards therefore are on file in the office of the city clerk pursuant to Health and Safety Code Section 18942(d) and are made available for public inspection.

15.04.025 – Fees
The Council shall by resolution adopt a schedule of fees for the permits issued pursuant hereto.

15.04.050 Tents and canopies.

The following provisions shall apply:

A. It is unlawful for any person, firm or corporation to erect, put in place or maintain in place, within any portion of the city, any tent, tent-house, canvas-house or structure constructed of canvas, cloth, or other fabric; any canopy or canopy structure constructed of canvas, cloth or other fabric or material within a distance of one hundred feet from the front property line of any lot or subdivision of land within the city, or within twenty feet of any dwelling, house, building or other structure.

B. Exceptions. The provisions of this chapter shall not apply as follows:

1. Decorative canopies and awnings constructed as a component or feature of an overall architectural design pursuant to the provisions of Section 17.36.040.

2. Picnic umbrellas not in excess of ten feet in diameter.

3. Temporary Tents and Canopies. Temporary tents and canopies, of any size, may be erected in any location on a parcel or lot for a period that is not in excess of three days. Such tent and/or canopy may not be re-erected until a minimum ninety-day period has elapsed.

4. Temporary tents and canopies as permitted pursuant to the provisions of Chapter 5.16 (Temporary Use Permits).
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5. Tents and canopies may be permitted for eligible restaurants with patio space under the Outdoor Dining Program.

15.04.060 Applicability of subdivision ordinance.

No building permit shall be issued with respect to the construction of any building or structure on any parcels of land which have been subdivided, split or otherwise separated in ownership since January 1, 1956, unless such subdivision, division, split or other such separation in ownership has complied in full with all of the regulations and requirements concerning subdivision in this code.

15.04.070 Stormwater retention.

A. New development, after January 1, 2010, must incorporate design elements for:

1. Prevention of stormwater runoff onto pavements and other nonpermeable areas;

2. Stormwater retention and reuse for irrigation of landscaped areas; and

3. Rooftop designs, rain gutters, and other stormwater retention designs that can be directed towards landscaped areas and thereby reuse the stormwater.

B. The building department is authorized to withhold, deny or grant conditional approval to any application for a building permit which involves:

1. Construction upon, destruction of or curtailment in the capacity of storm drain facilities installed under and by virtue of Title 17 of this Code;

2. Construction, excavation or fill which changes the grade of the natural slope of the surface of any lot or lots so that the water drainage thereon is changed to run onto a different location or in greater quantity or at an accelerated rate, or in a way that creates a hazard to the public health, safety or property. The decision of the building inspector shall be based upon the recommendation of the city engineer concerning the continued necessity of such drainage installations or of reasonable substitutes therefor.

15.04.080 Temporary structure permits.

Temporary structure permits involving the construction of a residential structure upon an R-1 lot, upon which there is then located an existing dwelling unit or involving the relocation of a residential structure upon a residential lot upon which there is then located an existing dwelling unit, shall be issued by the building inspector only upon the condition that the applicant file a surety bond in the amount recommended by the city engineer guaranteeing the removal of such existing house within thirty days after occupancy of the dwelling unit to be so constructed or relocated. In the event that any applicant feels that the imposition 412243.5
of such condition is an unnecessary hardship, or if it is intended to use the existing dwelling unit as an accessory building to the new dwelling unit, then such applicant may appeal the imposition of such condition to the city council, and the decision of the city council shall be final.

15.04.090 - Amendment to Section 1505 Roofs—Fire Classifications.

The 2025 California Building Code Section is amended to add the following to Section 1505:

A. Any building alteration, replacement, or repair, which does not exceed twenty-five percent of the area of the existing roof, over the life of the structure, may use existing like materials on said roof.

B Any building alteration, replacement, or repair, which exceeds fifty percent of the area of the existing roof, over the life of the structure, shall be made with fire retardant covering as specified in the California Building Code.

C. Any building alteration, replacement, or repair, which exceeds fifty percent of the area of the existing roof, over the life of the structure, shall be made with fire retardant covering as specified in the 2025 California Building Code.

D. Any building addition, which does not exceed twenty-five percent of the area of the existing roof, over the life of the structure, may use existing like material on the roof addition, and any alteration, replacement, or repairs to the existing roof, required by such addition may also use existing like materials.

E. Any building addition, which exceeds twenty-five percent of the area of the existing roof, over the life of the structure, shall be made with fire retardant covering as specified in the 2025 California Building Code, and any alterations, replacements, or repairs to the existing roof, required by such addition, shall also be made with such fire retardant roof covering.

F. Wood roofs shall not be considered a Class A covering regardless of the rating of an assembly.

15.04.100 - Amendment—Section 202—Additions, alterations or repairs.

A. The following is added to the end of Section 202 of the 2025 California Building Code:

The phrase "additions, alterations, and repairs" as used in this section, and all subsections thereof, shall not be construed to apply to the remodeling of an existing building to provide new facades or other aesthetic embellishments or 412243.5
accouterments which do not modify the structural support or members of such building.

Buildings or structures to which additions, alterations, or repairs are made shall comply with all requirements of this code for new facilities except as specifically provided in this section. See section 907 of the Building Code for provisions requiring installation of smoke detectors in existing Group R, Division 3 Occupancies.

15.04.112 – Construction Site Fencing.

Whenever a building permit is issued to construct, add or alter a building or site, the installation of perimeter temporary fencing shall be required.

The installation of temporary fencing shall be required for the following projects:

1. A project involving grading, trenching or excavation activities.

2. The construction area is visible from the public right-of-way with the exception of roof replacement and window change-outs with no framing work.

3. There is outside storage of building materials, equipment, construction materials or equipment stored at the front of the property.

4. The property is vacant during the duration of the construction.

5. As determined by the Building Official.

The Building Official shall require the site to be temporarily fenced and screened on all sides for the duration of the construction project. The height of the fence shall be seventy-two inches (72) high with gates to access the site.

The screening material shall be tightly secured to the fencing, free of holes and without advertising. The perimeter fencing may be removed when there are no remaining exterior construction activities visible from the public right-of-way and there is no longer visible outside storage of building materials, equipment or fixtures, or as determined by the Building Official. An address sign shall be installed and be visible from public right of way at all perimeter points to include the street name and number of the site using minimum six-inch high letters and numbers, and shall be posted at the top of the perimeter fence or at least five feet from the ground. A "No Trespassing" sign, conforming to the requirements of California Penal Code, Section 602, shall be installed at all perimeter access points, posted at the top of the perimeter fence or at least five feet from the ground.

15.04.115 - Section 105.7 Demolition Permits.

The following is added to Section 105 of the 2025 California Building Code. 412243.5
Section 105.7 Demolition Permits.

A. No permit for the demolition of all or any substantial portion of any building in the city shall be issued for a period of thirty days after such application is made.

For the purposes of this chapter, demolition shall be considered the alteration, reconstruction, or elimination of 50% or more, of the floor area or monetary value. Projects that involve less than 50% of the alteration, reconstruction, or elimination of the floor area or monetary value may still be subject to requirements of Chapter 8.13 and/or 12.20 of this code.

B. Within 10 days of the application, the applicant should submit a mitigation plan for vermin, noise, dust, asbestos, salvage, trash removal, air pollution, historic preservation, and neighborhood peace and enjoyment. Failure to submit such mitigation report may be grounds for denying such permit.

C. Prior to the release of the demolition permit, the applicant shall demonstrate that notification of, and compliance with, requirements established by the following:

1. South Coast Air Quality Management District (AQMD);

2. Electricity provider;

3. Natural gas provider; and

4. City Department of Public Works.

D. Prior to the issuance of a demolition permit, the applicant shall file (in general terms) his/her intended reuse of the property with planning and community preservation department. Such plan shall indicate the intended use and condition of the property after the demolition of structures requested within the demolition permit is concluded.

E. The filing of any notice or report, as called for herein, is not intended to vest any discretion (under CEQA or otherwise) in the building official to deny such application. Instead, such permit shall be issued unless such issuance is contrary to any law or regulation applicable at that date.

F. To the extent, if any, that this Section 115 differs from the 2025 California Building Code (CBC), the city council finds that there are conditions unique to this city that justify such change, including high fire danger, steep hillsides, vermin infestation, wildlife and asbestos levels. The issuance of a demolition permit shall be considered a ministerial duty under the provisions of CEQA Section 15268 except for historical and unique archeological resources as outlined in CEQA Section 15064.5. If the demolition permit is for a historic structure, a cultural resources report shall be prepared at the property owner's expense.
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G. Demolitions of Historic Structure.

1. If (i) a building or structure deemed eligible for landmark status, (ii) a building or structure listed or deemed eligible for listing in the National Register of Historic Places, or (iii) a building or structure listed or deemed eligible for listing in the California Register of Historical Resources, or if any cultural resource determined to have historic significance, is demolished without a permit:
a) The violator shall within one year completely rebuild the demolished structure to pre-existing condition and shall submit a surety bond that shall be in amount equal to the replacement value as calculated by the department of
planning and community preservation;
b) The city may rebuild it within said one-year period
placing the costs thereof as a lien on the property which shall indemnify the city against all costs so incurred and all liabilities arising there from; or
c) No building or construction related permits shall be issued, and no permits or use of the property shall be
allowed, from the date of demolition for a specified time period, as follows: for five years, if the structure was listed or deemed eligible for listing on the local, state, or Federal Registry of Historic Resources. In addition, for a historic structure, a cultural resources report shall be prepared at the property owner's expense. For the purposes of this
section, the demolition shall be presumed to have occurred on the date the city has actual knowledge of the demolition.

The owner shall have the burden of proving a different date if one is claimed. Such waiting period shall be for the purpose of consideration of rebuilding, relocation, grants, etc., for replacement.

2. The director of planning and community preservation shall cause notice to be served by mail on the person shown as the owner on the rolls of the tax assessor and on any other person known to have an interest in the property, as soon as practicable after having knowledge that the provisions of this section are applicable to property. The date the city first had actual knowledge of the demolition shall be stated in the notice.

3. A determination made under this section may be appealed by the property owner in accordance with Section 17.60.115.
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15.04.117 - Works Exempt from Permit:

A permit may be required for items exempted from building permit requirements under Chapter 1 Division II Section 105.2 and Section R105.2. Exempted work shall not violate any provisions of this Code, Federal, State, Local laws, or regulations.

All walls, retaining walls, and fences regardless of type or height shall require a building permit.

15.04.118 - Amendment—Section 903 Automatic Fire Sprinklers.

The following sections within section 903 of the 2025 California Building Code, entitled, "Automatic Sprinkler Systems" are revised to provide as follows:
903.2.1.1 Group A-1. An automatic sprinkler system shall be provided for Group A-1 occupancies in accordance with Code section 15.24.120. 903.2.1.2 Group A-2. An automatic sprinkler system shall be provided for Group A-2 occupancies in accordance with Code section 15.24.120. 903.2.1.3 Group A-3. An automatic sprinkler system shall be provided for Group A-3 occupancies in accordance with Code section 15.24.120. 903.2.1.4 Group A-4. An automatic sprinkler system shall be provided for Group A-4 occupancies in accordance with Code section 15.24.120. 903.2.1.5 Group A-5. An automatic sprinkler system shall be provided for Group A-5 occupancies in the following areas: concession stands, retail areas, press boxes, and other accessory use areas in accordance with Code section

15.24.120.
903.2.2 Group B. An automatic sprinkler system shall be provided throughout all buildings containing a Group B occupancy in accordance with Code section

15.24.120.
903.2.3 Group E. An automatic sprinkler system shall be provided throughout all buildings containing a Group E occupancy in accordance with Code section

15.24.120. (exception: For public school state-funded construction projects see Section 903.2.19)
903.2.4 Group F-1. An automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy in accordance with Code section

15.24.120.
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903.2.5 Group H. Automatic sprinkler systems shall be provided in high-hazard occupancies as required in Sections 903.2.5.1 through 903.2.5.3. 903.2.5.1 General. An automatic sprinkler system shall be installed in Group H occupancies in accordance with Code section 15.24.120.
903.2.6 Group I. An automatic sprinkler system shall be provided throughout buildings with a Group I in accordance with Code section 15.24.120. 903.2.7 Group M. An automatic sprinkler system shall be provided throughout buildings containing a Group M occupancy in accordance with Code section

15.24.120.
903.2.8 Group R. An automatic sprinkler system installed in accordance with Section 903.3 shall be provided throughout all buildings with a Group R fire area and in accordance with Code section 15.24.110.
903.2.9 Group S-1. An automatic sprinkler system shall be provided throughout all buildings containing a Group S-1 in accordance with Code section 15.24.120. 903.2.9.1 Repair garages. An automatic sprinkler system shall be provided throughout all buildings used as repair garages in accordance with Code section

15.24.120.
903.2.9.2 Bulk storage of tires. Buildings and structures with an area for the storage of tires shall be equipped throughout with an automatic sprinkler system in accordance with Section 903.3.1.1.
903.2.10 Group S-2. An automatic sprinkler system shall be provided throughout buildings classified as enclosed parking garages in accordance with Section 406.6 of the California Building Code or where located beneath other groups. 903.2.10.1 Commercial parking garages. An automatic sprinkler system shall be provided throughout buildings used for storage of commercial motor vehicles in accordance with Code section 15.24.120.

15.04.130 - Permit for landscape project.

A. A written permit shall be obtained from the department of public works prior to development of landscapes as specified in Section 15.60.030.

B. The director of public works shall issue a permit if the applicant has submitted the landscape documentation package as required by Section 15.60.040 and the landscape project satisfies the requirements set out in Chapter 15.60 of this title.
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C. The permit fee for landscape project shall be established by resolution of the city council, and shall be based on the estimated cost of reviewing the landscape documentation package and issuing the permit.

SECTION 3. Amendment. Chapter 15.06 (California Residential Code) of Title 15 (Buildings and Construction) of the Sierra Madre Municipal Code is amended to read as follows:

Chapter 15.06 - CALIFORNIA RESIDENTIAL CODE

15.06.040 - Amendment—Townhouse automatic fire sprinkler systems.

Section R309.1 of the California 2025 Residential Code is amended to provide as follows:
"An automatic residential fire sprinkler system shall be installed in townhouses in accordance with accordance with Sierra Madre Municipal code Chapter

15.24"

15.06.050 - Amendment—One- and two-family dwellings automatic fire systems.

The following is added to the end of Section R309.2 of the 2025 California Residential Code:
"An automatic residential fire sprinkler system shall be installed in one- and two-family dwellings in accordance with accordance with Sierra Madre Municipal code Chapter 15.24."

15.06.060 - Amendment—Required sprinkler locations, exception 4.

Section R309.3.1.1, of the California 2025 Residential Code exception 4 is amended to read as follows:
"Detached garages and carports in accordance with Sierra Madre Municipal code Chapter 15.24."

15.06.070 - Water flow detector alarm.

A new section R309.3.5 of the California 2025 Residential Code is added to the Residential code and shall be entitled "Water flow detector alarm." That section shall provide:
"Water supply."
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"The flow of one sprinkler shall activate a water flow detector alarm that shall be audible on the exterior of the building."
SECTION 4. Deletion. Chapters 15.08 (California Mechanical Code), 15.16 (California Electrical Code), 15.20 (California Plumbing Code), and 15.22 (California Historical Building Code), 15.26 (Existing Building Code) of Title 15 (Buildings and Construction) of the Sierra Madre Municipal Code are deleted in their entirety.

SECTION 5. Amendment. Chapter 15.30 (Green Building Standards Code) of Title 15 (Buildings and Construction) of the Sierra Madre Municipal Code is amended to read as follows:

15.30.040 - Water metering for multi-family dwellings.

The 2013 California Green Buildings Standards Code is hereby amended by adopting the requirement that all multi-family dwellings constructed after January 1, 2016, shall be equipped with an individual water meter for each unit, with each meter being assigned a separate water account with the city. This requirement applies to all R-2, R-3-13, R-3-20, and R-3-30 structures as defined in Municipal Code Chapters 17.24, 17.28, and 17.29 respectively.

SECTION 6. Deletion. Chapters 15.34 (California Energy Code) and 15.36 (Referenced Standards Code) of Title 15 (Buildings and Construction) of the Sierra Madre Municipal Code are deleted in their entirety.

SECTION 7. Repeal of Conflicting Ordinances. All existing ordinances or parts thereof conflicting or inconsistent with the provisions of this ordinance or the California Fire Code adopted are hereby repealed.

SECTION 8. References in Documents and Continuing Legal Effect.

References to prior versions of the California Fire Code, or of the Sierra Madre Municipal Code that are amended or renumbered in this Municipal Code, that are cited on notices issued by the City or other documents of ongoing or continuing legal effect, including resolutions adopting or imposing fees or charges, until converted, are deemed to be references to the new counterpart 2025 Fire Code, 2025 Wildland Urban Interface Code, or amended Municipal Code sections for the purposes of notice and enforcement. The provisions adopted hereby shall not in any manner affect deposits, established fees or other matters of record which refer to, or are otherwise connected with, ordinances which are specifically designated by number, code section or otherwise, but such references shall be deemed to apply to the corresponding provisions set forth in the code sections adopted or amended hereby.
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SECTION 9. Continuity. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Sierra Madre Municipal Code, these provisions shall be construed as continuations of those provisions and not as amendments of the earlier provisions.

SECTION 10. No Effect on Enforceability. The repeal of any sections of the Municipal Code, shall not affect or impair any act done, or right vested or approved, or any proceeding, suit or prosecution had or commenced in any cause before such repeal shall take effect; but every such act, vested right, proceeding, suit, or prosecution shall remain in full force and effect for all purposes as if the applicable provisions of the Municipal Code, or part thereof, had remained in force and effect.

No offense committed and no liability, penalty, or forfeiture, either civil or criminal, incurred prior to the repeal or alteration of any applicable provision of the 2022 Code as amended, shall be discharged or affected by such repeal or alteration but prosecutions and suits for such offenses, liabilities, penalties or forfeitures shall be instituted and proceed in all respects as if the applicable provisions of the 2022 Code, as amended, had not been repealed or altered.

SECTION 11. Supplementary of Existing Law. The City Council intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent.

SECTION 12. Modifications to California Fire Code. All inconsistencies between the Municipal Fire Code, as adopted by this ordinance, and Parts 7 & 9 of Title 24 the California Code of Regulations are changes, modifications, amendments, additions or deletions thereto authorized by California Health and Safety Code Sections 17858 and 17858.7.

SECTION 13. Findings. The City Council hereby adopts the findings attached hereto as Exhibit 1 by this reference fully incorporated herein and made in accordance with Health & Safety Code section 18941.5.

SECTION 14. Severability. Should any section, subsection, clause, or provision of this Ordinance for any reason be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this Ordinance; it being hereby expressly declared that this Ordinance, and each section, subsection, sentence, clause, and phrase hereof would have been prepared, proposed, approved, and ratified irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

SECTION 15. Effective Date. Pursuant to Government Code Section 36937, this Ordinance shall take effect thirty days after its adoption, or January 1, 2026, whichever is later.
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SECTION 16. Records. Pursuant to Government Code Section 40801, proof of certification and publication shall be entered in the book of Ordinances of the City Council.

SECTION 17. CEQA. This Ordinance has been determined to be exempt from the California Environmental Quality Act pursuant to State Guidelines §15061 (b) (3) as a project that has no potential for causing a significant effect on the environment.

SECTION 18. Certification. Pursuant to Government Code Section 36932, the City Clerk shall certify the passage, approval, and adoption of this Ordinance by the City Council.

SECTION 19. Filing with State. The City Clerk shall file a certified copy of this Ordinance with the California Building Standards Commission.

PASSED, APPROVED AND ADOPTED, this 28th day of October, 2025

___________________________
Robert Parkhurst, Mayor

I HEREBY CERTIFY that the foregoing Ordinance was introduced by first reading on the 14th day of October, 2025, and duly adopted at a regular meeting held on the 28th day of October 2025, by the City Council of the City of Sierra Madre, California, by the following vote:

AYES:

NOES
ABSTAIN:

ABSENT:
___________________________
Laura Aguilar, City
Sierra Madre 2025 California Building Code Findings Page 1

SIERRA MADRE BUILDING DEPARTMENT
2025 BUILDING CODE FINDINGS
This report contains the “Findings” to support this ordinance to amend the California Building Standards Code. Each of the proposed amendments to the non-administrative provisions of the building standards code are based on local climatic, geologic, and topographical conditions and cause the new code to be more restrictive in nature than the underlying California Building Standards Code.

The amendments address the building problem(s), concern(s), and future direction(s), by which the City can establish and maintain an environment which will afford an adequate level of building and life safety protection to its citizens and guests.

Section 1 of this Exhibit sets forth the various finding.

Section 2 of this Exhibit explains which findings apply to which amendments.

Section 1. General Findings
The following findings apply in the City of Sierra Madre, and explain why the changes to the Building Standards Code are necessary because of climatic, geological, and/or topographical condition is in the city.

A. Climatic Conditions

1. Normal rainfall averages 15 inches annually. During the summer and fall months, temperatures average approximately 85 degrees and can exceed 100 degrees for a period of days. Dry winds remove the moisture from vegetation. During late summer and fall, winds can move a fire quickly across the foothills or through residential areas of Sierra Madre. Winter rains often cause floods and the threat of damage due to water runoff.

B. Geologic Conditions

1. The beautiful mountains that border the north of Sierra Madre create a unique hazard. The foothills have become prime sites for residential development because of their scenic beauty. The steep, narrow canyons create narrow winding roads that lengthen response time of emergency vehicles due to the increase in grade. Also, due to the hills and mountainous terrain, it is difficult to ensure proper fence and wall heights and footing depths without requiring inspections and permits.

EXHIBIT A
Sierra Madre 2025 California Building Code Findings Page 2

2. The city is a densely populated area having buildings and structures over and near major fault systems capable of producing major earthquakes. Thus there are proposed modifications to emphasize designs with seismic-force-resisting elements.

C. Topographic Conditions

1. The topographic element of this report is associated closely with the geologic element noted above. While the geologic features create the topographic conditions, the areas of findings in this Section are, for the most part, a result of the construction and design of Sierra Madre.

2. Sierra Madre has areas that are in high fire hazard zones. As stated above, due to topography, access to structures in these fire hazard zones increases response time and delays fire suppression efforts.

Extended response times allow fires to grow beyond the control of initial attack resources. Additionally, large structure fires in the hillside areas have a greater likelihood of starting wild land fires, which exposes additional structures to fire.

3. Clarification of the design parameters for projects subject to the Building Code is necessary to assure that appropriate development is constructed in accordance with the scope and objectives of the International Building Code, as applied in the city of Sierra Madre.

D. Administrative

1. These amendments are necessary for administrative clarification and do not modify any building standards. They establish standards to effectively enforce building standards and therefore need to be incorporated into the code to assure that new building and structures and additions or alteration to existing buildings or structures are designed and constructed in accordance with the scope and objectives of the California Building Standards Code.

Section 2 – Which Findings Apply to Which Amendments
The following amendments to the 2025 Edition of the California Building Standards Code are found reasonably necessary based on the climatic, geologic, and/or topographic conditions cited in Section 1 of this Exhibit:

California Building Code Sections Applicable Findings
202 C-3
109.4 D-1
105.2 B-1, D-1
Section 1505 A-1; B-1; C-1; C-2
Sierra Madre 2025 California Building Code Findings Page 3 2025 California Residential Code Applicable Findings
R105.2 B-1, D-1
R309.1 A-1, B-1, C-2
R309.2 A-1, B-1, C-2
R309.3.1.1 exception 4 A-1, B-1, C-2
R309.3.5 A-1, B-1, C-2

TO: Honorable Mayor and Members of the City Council
FROM: Katelyn Huang, Assistant Planner
Clare Lin, Director of Planning and Community Preservation REVIEWED BY: Michael Bruckner, City Manager
DATE: October 14, 2025
SUBJECT: RESOLUTION 25-58 APPROVING AND AUTHORIZING THE CITY’S PARTICIPATION IN THE PERMANENT LOCAL

HOUSING ALLOCATION PROGRAM

RECOMMENDATION
It is recommended that the City Council adopt Resolution 25-58 to allocate and authorize the City’s participation in the Year 5 Permanent Local Housing Allocation (PLHA) Program, and authorize the City Manager to enter contract with Los Angeles County Development Authority

ALTERNATIVES
The City Council may:

1. Adopt Resolution 25-58, allocating and authorizing the City’s participation in the Year 5 Permanent Local Housing Allocation (PLHA) Program; or

2. Decline to adopt Resolution 25-58; or

3. Direct staff to return with additional information.

EXECUTIVE SUMMARY
In 2024, the City Council adopted Resolution 24-05 establishing the Minor Home Rehabilitation Program, which provides CDBG funded grants to eligible low- and moderate-income senior homeowners for home repairs and accessibility upgrades that support ageing in place. The program has continued successfully through FY 2025-2026, completing five projects to date, with additional applications in progress. For FY 2025-2026, the City has been allocated $18,579 in Year 5 Permanent Local Housing Allocation (PLHA) funds, which staff proposes to dedicate to the Senior Residential Rehabilitation Program once CDBG funds are fully expended. Use of PLHA funds will ensure the program’s continuity and allow the City to extend assistance to additional income-qualified seniors.

City of Sierra Madre

AGENDA REPORT
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer

ANALYSIS
On January 9, 2024, the City Council adopted Resolution 24-05 establishing the Minor Home Rehabilitation Program for FY 2023-2024. The program provides grants to eligible low- and moderate-income senior residents of Sierra Madre for essential home improvements that support ageing in place. Since its adoption, the program has continued successfully into FY 2025-2026.

The City’s 2021–2029 6th Cycle Housing Element identifies the Minor Home Rehabilitation Program as a key strategy to preserve existing housing stock for lower-income seniors.

Recognizing that many of Sierra Madre’s older homes are occupied by seniors who may face challenges in maintaining their properties, the City began the Senior Residential Rehabilitation Program under the Minor Home Rehabilitation Program to meet Community Development Block Grant (CDBG) elibility requirements and allocates grant funds to support the program. Eligible senior homeowners earning less than 80% of the Area Median Income (AMI) may receive grants of up to $17,255 for home repairs and accessibility upgrades. Typical improvements include wheelchair ramps, handrails, grab bars, tub-to-shower conversions, roof repairs, plumbing repairs, and window replacement. With Sierra Madre’s sizable senior population – approximately one-quarter of whom are lower income – the program plays an important role in promoting housing stability, safety, and quality of life for seniors. 2021-2029 Objective: Develop program guidelines for a Minor Home Rehabilitation Program utilizing CDBG funds. Conduct outreach through the Sierra Madre Senior Center, the Senior Commission, the City newsletter and City Hall website. Seek to assist six extremely low, very low and low income households annually, for a total of 48 during the planning period.

For FY 2025-2026, the City’s total CDBG appropriation of $205,205 allows grants for approximately ten seniors. To date, five projects have been completed, and the program continues to receive active interest from residents. To ensure the program’s continuity beyond the use of CDBG funds, the State’s Permanent Local Housing Allocation (PLHA) program provides an additional source of funding to address unmet housing needs. For Year 5, the City has been allocated an estimated $18,579 in PLHA funds, which staff proposes dedicating to the Senior Residential Rehabilitation Program once all available CDBG funds have been expended.

The PLHA program was established by the State of California through SB-2 (Building Homes and Jobs Act of 2017) to expand affordable housing opportunities, support affordable owneroccupied rehabilitation, assist persons at risk of homelessness, facilitate housing affordability, and help jurisdictions meet their regional housing needs allocations. Once LACDA receives the Year 5 allocation from the State Department of Housing and Community Development (HCD), the City will be required to enter into a contract with LACDA setting forth the funding conditions, program requirements, and regulatory obligations.

STRATEGIC PLAN CORRELATION
The proposed allocation of Permanent Local Housing Allocation (PLHA) funds supports the City’s 2025–2026 Strategic Plan in the following ways:
x Goal 1: Organizational Sustainability – Objective 1.2 (Fiscal Stability & LongRange Planning): Leveraging PLHA funds alongside Community Development Block

Grant (CDBG) resources advances long-term financial sustainability by diversifying external funding and reducing reliance on the General Fund. x Goal 3: Infrastructure & Growth Management – Objective 3.2 (Design Standards & Housing Readiness): Directing PLHA resources to the Senior Residential Rehabilitation Program preserves existing housing stock, supports Housing Element objectives, and enhances the City’s readiness to meet community housing needs. x Goal 2: Public Safety – Objective 2.3 (Environmental Management & Code Enforcement): Rehabilitation improvements such as accessibility upgrades, roof repairs, and plumbing work promote safe, code-compliant housing conditions and improve quality of life for senior residents.

Participation in the PLHA program strengthens fiscal stability, preserves housing for vulnerable populations, and contributes to community safety and resilience in alignment with the City’s adopted Strategic Plan.

FINANCIAL REVIEW/SOURCE OF FUNDING
There is no impact to the General Fund. The Permanent Local Housing Allocation (PLHA) program provides annual formula allocations from the State of California to eligible jurisdictions for the purpose of expanding affordable housing opportunities and supporting housing preservation initiatives. For FY 2025–2026, the City has been awarded a Year 5 allocation of $18,579 in PLHA funds.

These funds will be used to supplement the City’s Senior Residential Rehabilitation Program once all available Community Development Block Grant (CDBG) funds for the fiscal year are fully expended. The PLHA allocation will therefore function as a secondary funding stream, ensuring program continuity and allowing the City to assist additional low- and moderate-income senior homeowners in completing essential home safety and accessibility improvements.

The City’s CDBG allocation of $205,205 for FY 2025–2026 is sufficient to fund approximately ten senior rehabilitation projects. The PLHA funds will provide additional capacity for further eligible projects, helping the City meet its Housing Element goals and respond to ongoing demand for senior home rehabilitation assistance.

The PLHA allocation will be received through the Los Angeles County Development Authority (LACDA), following execution of the funding agreement, and must be used in compliance with all program regulations and reporting requirements established by the California Department of Housing and Community Development (HCD).

ENVIRONMENTAL IMPACT (CEQA)
The proposed resolution pertaining to the allocation of the City’s participation in the Permanent Local Housing Allocation (PLHA) Program and budget does not constitute a “project” as defined in the California Environmental Quality Act (CEQA), and is therefore exempt from environmental review.

PUBLIC NOTICE
This item has been noticed for a thirty (30)-day public review and comment period from

September 9, 2025 to October 9, 2025, a required for the PLHA Program, and through the regular agenda notification process. Copies of this report can be accessed on the City’s website at: sierramadreca.gov/MHRP.

ATTACHMENTS
Attachment A: City Council Resolution No. 25-58
Attachment B: PLHA 30-day Public Notice
Attachment C: Letter of Intent
Attachment D: PLHA Program Exhibit A
CITY COUNCIL RESOLUTION NO. 25-58

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIERRA MADRE, CALIFORNIA, APPROVING THE CITY’S

PARTICIPATION IN THE LOS ANGELES URBAN COUNTY

PERMANENT LOCAL HOUSING ALLOCATION

PROGRAM BY AUTHORIZING THE MAYOR, OR THEIR

DESIGNEE, TO SIGN A REIMBURSABLE CONTRACT

FOR THIS PROGRAM FROM THE COUNTY OF LOS

ANGELES
WHEREAS, the Permanent Local Housing Allocation Program (PLHA) was established by the State of California through SB 2 (Building Homes and Jobs Act of 2017) to provide ongoing funding to cities and counties for affordable housing opportunities, support affordable owner-occupied rehabilitation, assist persons at risk of homelessness, facilitate housing affordability, and help jurisdictions meet their regional housing needs allocations; and
WHEREAS, the City of Sierra Madre desires to participate in Los Angeles Urban County PLHA Program for Year 5; and
WHEREAS, the City of Sierra Madre has received notification of the availability of PLHA funds in the amount of $18,579 for Year 5; and
WHEREAS, the City proposes to allocate these funds to the Senior Residential Rehabilitation Program, which assists income-qualified senior homeowners with minor home repairs and accessibility improvements; and
WHEREAS, the City has provided notice of the public hearing for a thirty (30)-day public review and comment period from September 9, 2025 to October 9, 2025, as required for the Permanent Local Housing Allocation Program; and WHEREAS, the City Council has conducted a public hearing, with the required prior noticing, to provide the public an opportunity to comment on the programs proposed for the use of PLHA Year 5 funds; and
WHEREAS, the City authorizes the execution of a Reimbursable Contract with the County of Los Angeles in order to receive said PLHA funds.

THEREFORE, THE CITY COUNCIL OF THE CITY OF SIERRA MADRE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1: The City Council approves the following programs to be implemented using PLHA funds for Year 5.

1. Senior Residential Rehabilitation Program - $18,579
The City proposes to use PLHA funds to cover administrative consultant costs and provide loans to income-qualified senior homeowners for minor home repairs. Eligible senior homeowners of single-family residences may receive assistance in an amount up to $17,255 for approved improvements.

SECTION 2: The City Council authorizes the City Manager, or their designee, to execute and submit any and all documents necessary for participation in the Los Angeles Urban County PLHA Program on behalf of the City for Year 5. Further, the City Council authorizes City Staff to adjust the Program budget as necessary throughout implementation of the PLHA Program for Year 5. This includes, but is not limited to, allocating amounts on a per project basis, adjusting project budgets, implementing a new or cancelling existing activities, to allow for the timely expenditure of PLHA funds.

PASSED, APPROVED, AND ADOPTED on the 14th of October 2025.

Robert Parkhurst, Mayor
ATTEST:

Laura Aguilar, City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF SIERRA MADRE )
I HEREBY CERTIFY that the foregoing Resolution was introduced and duly adopted at a regular meeting of the City Council of the City of Sierra Madre held on the 14th day of October 2025, by the following votes:

AYES:

NOES:

ABSTAIN:

ABSENT:

Laura Aguilar, City Clerk

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$77$&+0(17%
City of Sierra Madre
Planning & Community Preservation Department
232 W. Sierra Madre Boulevard, Sierra Madre, CA 91024
phone 626.355.7138 www.sierramadreca.gov
September 4, 2025
Ms. Linda Jenkins
Director
Community Development Division
Los Angeles County Development Authority
700 W. Main Street
Alhambra, CA 91801
Subject: Letter of Intent
Dear Ms. Jenkins:

The City of Sierra Madre is planning to allocate $18,579 in Permanent Local Housing Allocation (PLHA) Program Year 2025 funds for the following project:
x Senior Residential Rehabilitation Program - $18,579
The City proposes to use PLHA funds to cover administrative consultant costs and provide grants to low- and moderate-income senior homeowners. Eligible senior homeowners of single-family residences may receive an assistant amount up to of $17,255 for approved improvements. These funds will complement and expand our existing CDBG Senior Residential Rehabilitation Program, supporting seniors in maintaining and rehabilitate their homes to safely age in place.

Please contact me at (626) 255-7135 ext. 401and by email via [email protected] if any additional information is needed.

Sincerely,
Clare Lin, Director
Planning and Community Preservation
cc: Michael Bruckner, City Manager
Jennifer Maria, CDBG Consultant
$77$&+0(17&
C:\Users\lher4476\Documents\ATTACHMENT 2 PLHA Exhibit A Input Form .doc

ATTACHMENT '

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM EXHIBIT A INPUT FORM

1. ACTIVITY:
(a) Project Title:
(b) Beginning Date: Ending:

2. OPERATING AGENCY:
(a) Agency Name:
(b) Agency Address:
(c) Contact Information:

Name:

Title:

Telephone Number:

E-mail Address:

3. PROJECT ADMINISTRATION:

4. CONTRACTED SERVICES/SUBRECIPIENTS: (Describe duties to be performed.) Senior Residential Rehabilitation Program
11/1/2025 6/30/2029
City of Sierra Madre
232 West Sierra Madre Blvd., Sierra Madre,
CA 91024
Clare Lin
Director of Planning and Community Preservation
626-355-7135 ext. 401
Clare Lin, Director of Planning and Community Preservation Katelyn Huang, Assistant Planner
232 W. Sierra Madre Blvd.

Sierra Madre, CA 91024
(626) 355-7138 (office)
[email protected]
Jennifer Maria, CDBG Consultant, Willdan Engineering performing under an existing procurement process and contract agreement for existing CDBG program.

The contracted services includes administrative, construction as well as engineering services.

C:\Users\lher4476\Documents\ATTACHMENT 2 PLHA Exhibit A Input Form .doc

5. ACTIVITY ELIGIBILITY SUMMARY: Select Activity and Sub-Activity:

Multifamily Rental Housing

Acquisition
Predevelopment
Development

Rehabilitation
Preservation
Operating Subsidies

Affordable Rental, Ownership, and ADU Housing

Acquisition
Predevelopment
Development

Rehabilitation
Preservation

Matching Funds to Regional Housing Trust Funds

Housing for Homeless

Rapid Rehousing
Rental Assistance
Supportive Case Management

Operating Costs for Navigating Centers
Capital Costs for Navigation Centers

Operating Costs for Emergency Shelters
New Construction

Rehabilitation
Preservation

Homeownership Opportunities Assistance
(b) Estimated Number of Accomplishments:
(c) Performance Indicator:

Units

Households

6. ACTIVITY SUMMARY:
(a) Provide a detailed description of the activity to be implemented within the overall project. The summary should provide sufficient detail (who, what, when, where) to permit a clear understanding of the nature, beneficiaries, and eligibility of the activity.
(b) Will this project involve construction expenses of $1,000 or more? Yes
No

7. ACTIVITY SERVICE AREA INFORMATION:
(a) Service Area (Select the method by which you will define your service area):

Citywide
Countywide
Districtwide

Other - Please describe, i.e. San Gabriel Valley, Unincorporated South Whittier (b) Site Address/Type/Census Tract:

Site Address Type (Choose one only.) Census
Tract(s)
1 1
Minor home rehabilitation projects for low- and moderate-income senior residents in the City of Sierra Madre. This program would provide integral home improvements, including modifications to improve accessibility and mobility.

C:\Users\lher4476\Documents\ATTACHMENT 2 PLHA Exhibit A Input Form .doc

Construction Site

Service Facility

Construction Site

Service Facility

Construction Site

Service Facility

Construction Site

Service Facility

Construction Site

Service Facility

8. ACTIVITY BUDGET SUMMARY: (The Operating Agency understands that no expenditures may be incurred before the contract has been fully executed.)
Budget by Cost Category Total
Personnel $
Non-Personnel $
Capital Outlays $
Administration $
TOTAL: $

9. ACTIVITY LEVERAGED FUNDING SOURCES:

Source Amount Source Amount
$ $
$ $
$ $
$ TOTAL: $

10. IMPLEMENTATION SCHEDULE: (For predevelopment, construction, acquisition, rehabilitation, or preservation activities only.)
Milestone Target Date (MonthDay-Year) Comments
Phase 1:

Phase 2:

Phase 3:

Phase 4:

Phase 5:

C:\Users\lher4476\Documents\ATTACHMENT 2 PLHA Exhibit A Input Form .doc Phase 6:

Phase 7: Construction Completed
Phase 8: Post Construction/Labor
File Review

11. COMMENTS: If necessary, attach any additional information which you believe will assist in evaluating your project’s eligibility.

EXHIBIT A INPUT FORM INSTRUCTIONS
(1) ACTIVITY
(a) Project Title:

Each project is given an activity title that gives a clear indication of the overall nature of the activity (e.g., “Walnut Park Division Project - First District”). Do not exceed 60 characters. (b) Funding Period:

Each activity must be given a funding period. For each Program Year, no projects may start, or incur costs, earlier than the contract execution date and no later than 90-days prior to the Program Year deadline. Except for certain predevelopment costs, any costs incurred outside of the contract term must be disallowed. (2) OPERATING AGENCY
(a) Agency Name: Identify the Operating Agency of the proposed activity described in this Exhibit A Input Form. (b) Agency Address: Identify the Agency's mailing address. (c) Contact Information
Contact Name: Identify the name of the Division's contact person. This contact person should be able to answer questions related to the project and the related contract that may develop from this Exhibit A Input Form. This person could be the Grants Manager, Division Budget Analyst, or Project Manager. Title: Identify the title of the contact person.
Telephone Number: Identify the area code and telephone number of the contact person. E-mail Address: Identify the contact person’s e-mail address. (3) PROJECT ADMINISTRATION
Identify the entity administering the project. Include the name(s) and title(s) of the project manager(s), and the address and phone number for the Agency administering the project, if other than a LACDA Project Manager. (4) CONTRACTED SERVICES/SUBRECIPIENTS
List the name(s) of the individuals, firms, or subrecipients providing contracted services as part of the project.

Describe the duties to be performed under the contract or agreement, and indicate whether the individual, firm or agency has already been selected.
Contracted services include legal counsel, bookkeeping, construction, as well as architectural and engineering services and must be obtained through a procurement process. Subrecipient agencies include public or private non-profit entities providing services such as youth or senior programs.
(5) ACTIVITY ELIGIBILITY SUMMARY
(a) Select Activity and Sub-Activity: Indicate proposed project activity and budget. You may select more than one activity for each funding year.
(b) Expected Accomplishments:

C:\Users\lher4476\Documents\ATTACHMENT 2 PLHA Exhibit A Input Form .doc Based on the the performance indicator, provide the specific accomplishments your Agency expects to achieve by the end of the contract period using PLHA funds only. Remember that the selection of the correct performance indicator at the inception of a project is very important because it identifies the nature of the activity to be undertaken. The Performance Indicator that is selected is then used as a tool to measure the performance of a funded project. The goal may include the number of households assisted housing units made available because of this funding. (c) Performance Indicator:

Identify the performance indicator that most correctly corresponds to the activity. The performance indicator may include number of units or households assisted.
(6) ACTIVITY SUMMARY:
(a) Detailed Description: Provide a detailed description of the activity to be implemented within the overall project.

The summary should provide sufficient detail (who, what, when, where) to permit a clear understanding of the nature, beneficiaries, and eligibility of the activity.

The description must clearly describe what PLHA funds will pay for and indicate whether a subrecipient, consultant, or staff will undertake the implementation of the activity. Please include a line-item level listing of proposed expenditures.

For example, "Funds will be used for travel, space costs, consultant services", etc. For equipment purchases exceeding $300 per unit, please specify the equipment to be purchased (e.g., a copier, facsimile machine, computer, etc.). Also, include proposed accomplishments for leveraged funding (e.g., Other specific public funds, Tax Credits, Bond Fees, Other Private, etc.).
(b) Will this project involve construction expenses of $1,000 or more? Yes
No
(7) ACTIVITY SERVICE AREA INFORMATION
(a) Service Area: Identify the service area for the proposed project. Please note that we will utilize Census 2000 data as found in Map Locator.
(b) Site Address/Type/Census Tracts: Indicate the address of the site(s). Indicate if it is a construction or a service facility. Indicate what census tract(s) it is in (if construction) or the census tracts it serves (if a facility). (8) ACTIVITY BUDGET SUMMARY
Budget: Indicate budgeted amounts by Cost Category: Personnel, Non-Personnel, Capital Outlays, and Administration.

In developing your construction activity (if applicable), consider whether State prevailing wage requirements apply to the activity. In general, State prevailing wage applies to construction projects with expenses of $1,000 or more.

Please complete an Exhibit A form for each Activity and Sub-Activity. It will be considered on a project-by project basis if these may be combined into a single project that will be completed during the same contract term using the same Program Year funding.
(9) ACTIVITY LEVERAGED FUNDING SOURCES
Indicate the type and amount of leveraged funds to be used for this activity. Please note that PLHA funds are not to be included in this Section. Leveraged funds are project funds in addition to PLHA funds. (10) IMPLEMENTATION SCHEDULE
For activities that involve housing development and facility projects only, provide target dates (month-date-year) that correspond to identified milestones with regard to the completion of the activity. Activity schedule should correspond with the Expenditure deadlines assigned to each funding Year. (11) COMMENTS: Please provide any additional comments which you believe will assist LACDA staff in evaluating this project's eligibility.

TO: Honorable Mayor and Members of the City Council
FROM: Michael Bruckner, City Manager
DATE: October 14, 2025
SUBJECT: REPORT, DISCUSSION, AND DIRECTION REGARDING A

MEMORANDUM OF UNDERSTANDING WITH PUSD FOR

CROSSING GUARD SERVICES

STAFF RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to enter into a memorandum of understanding for a 50/50 cost sharing arrangement with Pasadena Unified School District (PUSD) for crossing guard services.

ALTERNATIVES
The City Council may provide additional direction to the City Manager related to this item.

EXECUTIVE SUMMARY
On October 6, 2025, City Manager Bruckner and Police Chief Barrientos participated in a meeting with representatives from PUSD in response to the City Council’s direction to discuss a memorandum of understanding (MOU) between the City and the school district for crossing guard services at Sierra Madre Elementary and Sierra Madre Middle School.

Prior to the meeting, the City provided PUSD with a quote from All City Management Services (ACMS) for two crossing guards—one at each school—with an estimated annual cost of $54,000.

During the meeting, the City Manager shared that the City has been contacted by concerned parents and community members regarding the lack of crossing guards at City of Sierra Madre

AGENDA REPORT
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer

intersections previously staffed by PUSD personnel. Additional information was provided regarding City efforts related to streetscape improvements, including crosswalk striping, LED stop sign installation, enhanced enforcement activities, and tree and brush clearance. PUSD staff were also advised that the City is in the process of acquiring a police motorcycle to further support traffic safety operations in school zone areas.

PUSD staff expressed appreciation to the City for its ongoing efforts to enhance driver awareness and school safety, and requested time to discuss the City’s request with district leadership. Subsequently, on October 8, 2025, the City was advised by PUSD that they have identified funding to enter into a 50/50 cost-sharing arrangement for crossing guard services.

Therefore, it is recommended that the City Council authorize and direct the City Manager to enter into a memorandum of understanding for a 50/50 cost sharing arrangement with Pasadena Unified School District for crossing guard services.

ENVIRONMENTAL(CEQA)
The proposed action does not constitute as a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be determined with certainty that it will have no impact on the environment.

STRATEGIC PLAN CORRELATION
This item aligns with the City’s Strategic Goal of Community Safety, ensuring safe pedestrian access to schools and reducing neighborhood traffic concerns.

PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. Copies of this report can be accessed on the City’s website at sierramadreca.gov

FISCAL IMPACT
The cost for crossing guard services was not included in the FY 2026 adopted General Fund budget and, therefore, a supplemental budget appropriation will be requested during the mid-year budget review for the pro-rated amount of crossing guard services for the remainder of the current school year. Future years funding will be subject to the annual budget appropriation process.

Sierra Madre City CouncilOctober 14, 2025

Sierra Madre City Council
October 14, 2025