Sierra Madre City Council
July 14, 2026

449525.1
Introduction
The purpose of these Local Goals and Policies for Community Facilities Districts (Policy or Policies) is to provide the City of Sierra Madre (City), City Council, City staff, the residents of the City, and the owners and developers of property located within the City, with guidance in the application for, and consideration of, the establishment of Community Facilities Districts (CFD) within the City for the purpose of financing, or assisting in financing, the acquisition or construction of public infrastructure, or the provision of authorized public services to benefit and serve either existing or new development, or a combination thereof. The underlying principles behind the Policies are the protection of the public interest, assuring fairness in the application of special taxes to current and future property owners, requiring full disclosure of the existence of any special tax liens, protecting the City's credit rating, financial position, and bond market reputation and requiring that applicants for all CFD proceedings other than City-initiated proceedings pay all costs associated with the formation of any CFD and that there is adequate provision for funding the City’s ongoing costs of administering a CFD and the related bonds.

The City hereby establishes and states its goals and policies concerning the use of the Mello-Roos Community Facilities Act of 1982 (Government Code sections 53311 to 53368.3), as amended (Act), in providing adequate public infrastructure improvements and public services for the City. The following local goals and policies shall apply to all CFDs hereafter formed, proposed to be formed, or formed and under consideration of modification by the City. Any policy or goal stated herein may be supplemented, amended, or waived, by resolution adopted by the City Council. These policies and goals shall supersede any other conflicting policies and goals previously adopted.

CFD Petition/Applications
The City will consider written petitions initiated by owners or developers of vacant property proposed to be developed, owners of property within existing developed areas, registered voters residing in existing developed areas, or the City itself for the establishment of CFDs to finance authorized public improvements or to provide authorized public services, which benefit or serve existing or new development or a combination thereof. A CFD(s) proposed to be established to finance public improvements and/or authorized services to serve new development may be referredto as a "Development-Related CFD."
Each petition for the establishment of a CFD is expected to comply with the applicable goals and policies contained herein, as may be amended or supplemented from time to time.

Commencement of the CFD formation process following initial review in no way assures the applicant, or other interested parties, that a CFD will ultimately be formed. Similarly, Local Goals and Policies for CFDs

449525.1
approval of a CFD formation in no way assures that bonds will be issued. Any risks inherent with any failure to form any proposed CFD and/or failure for any anticipated bond issuance to occur, including, without limitation, the amount and timing of issuance shall be borne entirely by the applicant and other CFD proponents and shall not be borne by the City or related entities.

The Finance Director shall determine and make available to potential applicants upon request, the required information to be submitted with a CFD application and reserves the right to request additional reports, information and/or studies reasonably necessary to evaluate an application. The Finance Director may confer with a CFD financing team or other consultants to determine the required information needs. The failure of an applicant to provide complete and accurate information and/or failure to notify the City of material changes may result in the City halting the process of CFD evaluation, formation and/or bond issuance.

Each application for the formation of a CFD shall be accompanied by an initial deposit in an amount to be determined by the City to be adequate to fund the evaluation of the application, undertake the proceedings to form the CFD, and issue the special tax bonds therefore as further provided herein at Section 10.

Policy Objectives
In accordance with Section 53312.7 of the Act, the objectives of this Policy shall include at least the following:

1. Financing priorities,

2. Bond financings; Credit quality,

3. Disclosures,

4. Equity of special tax formulas and maximum special taxes,

5. Appraisal standards.

Additionally, the City seeks to determine the finding of public interest or benefit as part of its Policy objectives. The objectives are more fully described below.

1. FINANCING PRIORITIES
The various eligible services and facilities to be funded under the Act are identified below in the order of their priority.

Eligible Public Services; Priority Services. The services eligible to be financed by a CFD are those identified in the Act. Subject to the conditions set forth in the Act, priority for public services to be financed by a CFD shall be given to services that are (a) necessary for public health, safety, and welfare, and (b) would otherwise be paid from the City's General Fund. The City may finance services to be provided by another local agency if it determines that the public convenience and necessity require it to do so, although the Local Goals and Policies for CFDs

449525.1
City prioritizes financing services to be provided by the City.

To the extent required by the Act, the CFD may only finance services authorized pursuant to a landowner vote to the extent they are in addition to those provided in the territory of the CFD before the CFD was created, and the additional services may not supplant services already available within the territory of the CFD when the CFD was created.

Eligible Public Facilities; Priority Facilities. The City will prioritize financing for facilities that may be financed under the Act and that provide substantial or regional direct or indirect public benefit.

It is acknowledged that the Act permits the financing of fee obligations imposed by governmental agencies, the proceeds of which fees are to be used to fund public capital improvements of the nature described above. The City will consider applications to finance fee obligations on a case-by-case basis. The City will prioritize financing fees to be paid to the City because of the administrative burden associated with financing fees payable to other local agencies.

The funding of public facilities to be owned and operated by public agencies other than the City shall be considered on a case-by-case basis. The City shall consider entering into a joint community facilities agreement or joint powers authority in order to finance those facilities. A joint agreement with the public agency that will own and operate any such facilitymust be entered into at the time specified in the Act.

A CFD may also be formed for the purpose of refinancing any fixed special assessment or other governmental lien on property, to the extent permitted under the Act, as applicable.

The City Council shall have the final determination as to the eligibility and priority of any facility for financing.

Eligible Private Facilities. Financed improvements may be privately-owned in the specific circumstances, and subject to the conditions, set forth in the Act, and subject to the approval of bond counsel.

2. BOND FINANCINGS; CREDIT QUALITY
Terms and Conditions of Special Tax Bonds. All terms and conditions of any special tax bonds issued by the City for any CFD, including, without limitation, the sizing, timing, term, interest rates, discount, redemption features, the flow of funds, investment provisions, and foreclosure covenants, shall be established by the City. Each special tax bond issue shall be structured to protect bond owners adequately and to avoid negatively impacting the City's access to the municipal bond market. Unless otherwise approvedby the City Council, the following shall serve as minimum bond requirements:

A. A reserve fund shall be established for each bond issue to be funded out of the bond proceeds in an amount equal to 10% of the original proceeds of the bonds or Local Goals and Policies for CFDs

449525.1
such lesser amount as may be required by federal tax law.

B. Interest shall be capitalized for a bond issue only so long as necessary to place the special tax installments on the assessment roll; provided, however, interest may be capitalized for a term to be established in the sole discretion of the City Council on a case-by-case basis, not to exceed an aggregate of 18 months, taking into consideration the value-to-debt ratio, the expected timing of initial occupancies, expected absorption and buildout of the project, the expected construction and completion schedule for the public improvements to be funded from the proceeds of the bond issue in question, the size of the bond issue, the development pro forma, the equity position of the applicant, and such other factors as the City Council may deem relevant. Irrespective of the term or amount of capitalized interest included in any bonds issued for a CFD, the maximum special tax shall be levied against any parcel used for private residential purposes no later than the first fiscal year which commences following either the fiscal or calendar year in which the building permit for the construction of such residential dwelling unit is issued, with the intention that the maximum expected tax is being levied by the time of occupancy.

C. In instances where multiple series of bonds are to be issued, the City shall determine what improvements shall be financed from the proceeds of each series of bonds.

D. The City shall not be required or expected to make any payment of the bonds out of its General Fund or other available funds. The sole source of revenue for the payment of the bonds shall be the special taxes, capitalized interest, if any, and money on deposit in the reserve fund established for such bonds. In addition, the City shall not be obligated to proceed with the sale of bonds unless it is satisfied that there is minimal risk of non-reimbursement of City expenditures inconnection with its ongoing compliance responsibilities as the bond issuer, including, but not limited to, regular ongoing administrative costs, the costs of complying with the bond foreclosure and other covenants, State reporting and other requirements and compliance with federal tax and securities laws.

Credit Enhancement. The City may, at its discretion, require additional credit enhancement to be provided by one or more developers and/or landowners to increase the credit quality of any CFD bond issue and to reduce the potential for a bond default.

Such credit enhancements may be required in situations where there is an insufficient value-to-lien ratio, where a substantial amount of the property within a CFD is undeveloped, where property ownership is concentrated, where tax delinquencies are present in parcels within the CFD, and in any other situation as required by the City. The form of any credit enhancement is subject to approval by the City, and the City shall impose specific requirements with respect to such credit enhancement; however, such credit enhancement will generally be in the form of an irrevocable standby letter-of-credit, will be required to be in an amount not less than the annual debt service allocable to the applicable developer-owned parcels for which such credit enhancement is required, and will be required to remain in effect until the share of debt service allocable to such developer-owned parcels is less than 20% of the annual debt service on all outstanding Local Goals and Policies for CFDs

449525.1
bonds for such CFD. The credit enhancement will generally be required to be issued or guaranteed by an entity, the long-term unsecured obligations of which are rated at least “A” by Moody’s Investors Service or S&P Global Ratings. Draws under such credit enhancement shall be used to pay debt service, replenish the reserve fund and/or cover the City’s costs of foreclosure for the related property in advance of any recovery from foreclosure proceeds. Such draws shall not be credited to the payment of special taxes.

All fees payable on such letter of credit or other security shall be the sole responsibility of the applicant, developer or landowner, not the City or CFD, and such fees shall not be payable or reimbursable from bond proceeds or CFD special taxes.

Local Goals and Policies for CFDs

449525.1
Value-to-Debt Ratio. It is the City’s policy that the value-to-debt ratio, i.e., the full market value of the properties subject to the levy of special taxes, including the value of the improvements to be financed from the proceeds of the issue or series of special tax bonds for which the value-to-debt ratio is being computed, compared to the aggregate amount of the special tax lien proposed to be created, plus any fixed assessment liens and/or special tax liens, for a CFD, must be at least 4:1. A CFD with a value-to-debt ratio of less than 4:1, but equal to or greater than 3:1, may be approved, in the sole discretion of the City Council, upon a determination by the City Manager, after consultation with the Finance Director, the bond counsel, the underwriter, and the municipal advisor, that a value-to-debt ratio of less than 4:1 is acceptable in light of the circumstances of the particular CFD and/or credit enhancement such as a letter of credit, or the escrow of bond proceeds to offset a deficiency in the required value-to-debt ratio as it applies to the taxable property within the CFD in the aggregate or with respect to any development area.

The value-to-debt ratio shall be determined based upon the full market value of the properties subject to the levy of the special tax as shown on the ad valorem assessment roll, or upon an appraisal of the properties proposed to be assessed. The City Manager may require the value-to-debt ratio be determined by an appraisal if, in his or her judgment, the assessed values of the properties proposed to be assessed do not reflect the current full cash value of such properties. The appraisal shall be coordinated by, done under the direction of, and addressed to, the City. The appraisal shall be undertaken by a state certified real estate appraiser, as defined in regulations adopted pursuant to Business and Professions Code Section 11340. The appraiser shall be selected and retained by the City. The costs associated with the preparation of the appraisal report shall be paid by the applicant for the CFD but shall be subject to possible reimbursement as provided for herein. The appraisal shall be conducted in accordance with assumptions and criteria established by the City and applicable in Los Angeles County, California, including the definitions, standards, and assumptions contained herein at Section 5.

Depending on the size of the CFD, the City may require that the appraisal be based upon a market absorption study estimating the length of time required to construct and sell all of the residential units which are to be constructed within the CFD.

Reserve Fund or Surety Bond. In most cases, a debt service reserve fund equal to the lesser of (i) 10% of the original proceeds of the bond issue, (ii) the maximum annual debt service on the bonds, or (iii) 125% of the average annual debt service on the bonds, will be required. A smaller debt service reserve fund may be approved by the City Council.

Surety Bonds may be considered as a feasible substitute to a reserve fund, subject to consultation with the bond underwriter and municipal advisor.

Escrow Fund. As an alternative to providing other security in certain circumstances, and subject to federal tax law, the applicant may request a portion of the bond proceeds be placed in escrow with a trustee or fiscal agent in an amount sufficient to assure the financing will meet the applicable credit criteria, including, but not limited to, meeting a value-to-lien ratio of at least 4:1 on the outstanding proceeds. The escrowed proceeds shall be released at such times and in such amounts as may be necessary to assure the applicable credit criteria has been met. The City may require the applicant or developer to bear the cost of such an escrow fund, including, but not limited to, the difference Local Goals and Policies for CFDs

449525.1
between the interest cost of the bonds and investment earnings during the escrow period.

Development Milestones. The City requires certain development milestones be reached prior to the issuance of bonds. The City desires to have at least 50% of the properties subject to special taxes within either the CFD or an improvement area boundary to have received building permits and be completed or substantially completed prior to the issuance of bonds secured by the property’s special taxes. The City may also order a market absorption study on the CFD and after review of the market absorption study and consultation with the City’s municipal advisor, the Finance Director will determine if an acceptable percentage of building permits has been received prior to bond issuance.

Other. The City will require bond financings to be structured so that bonds are purchased and owned by suitable investors. For example, the City may require the placement of bonds with a limited number of sophisticated investors, large bond denominations, and/or transfer restrictions in situations where there is an insufficient value-to-lien ratio, where a substantial amount of the property within a CFD is undeveloped, where tax delinquencies are present in parcels within the CFD, or in any other situation identified by the City.

In addition to the requirements of this policy, minimum credit quality for specific bonds may also be subject to underwriting criteria prevalent at the time of sale.

3. DISCLOSURES
Purchasers of Property. As a minimum, any disclosures mandated by applicable state law, including, but not limited to, Government Code section 53341.5, to inform prospective purchasers of their obligations under the CFD shall apply to each CFD. In addition, there may be additional requirements mandated by the City for particular kinds of financings on a case-by-case basis. The City may prescribe specific forms to be used to disclose the existence and extent of obligations imposed by a CFD. The applicant must keep an executed copy of each disclosure document and agree to provide a copy of all applicable executed disclosure documents to the City upon request.

Disclosure Requirements for the Resale of Lots. The City shall provide a notice of special taxes to sellers of property (other than developers) which will enable them to comply with their notice requirements under Section 1102.6 of the Act. This notice shall be provided by the City within five working days after receiving a written request for the notice. A reasonable fee may be charged for providing the notice, not to exceed any maximum fee specified in the Act.

Continuing Bond Disclosure. To the extent it is determined to be necessary in order for an underwriter of bonds to comply with Rule 15c2-12 of the Securities and Exchange Commission, or as otherwise determined to be appropriate by the City, afterconsultation with the City's bond counsel, its municipal advisor and the underwriter, the City may require landowners in a CFD to provide (i) initial disclosure prior to the time of issuance of any bonds, and (ii) periodic continuing disclosure (quarterly, semiannual and/or annual Local Goals and Policies for CFDs

449525.1
disclosure, depending on the specific circumstances). These requirements are expected to apply to all landowners in a CFD that are responsible for 20% or more of the annual special taxes securing bonds, and the continuing disclosure requirement is expected to remain in place until the special tax obligation of the property owned by such owners drops below 20%.

4. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES Minimum Special Tax Requirements. Special tax formulas (also known as the Rate and Method of Apportionment of Special Taxes or RMA) shall provide for minimum special tax levels which satisfy the following payment obligations of a CFD, as applicable: (i) pay annual services and/or maintenance expenses, (ii) 110% gross debt service coverage for all CFD bonded indebtedness, (iii) the reasonable administrative expenses of the CFD, and (iv) "pay as you go" costs to be paid from CFD special taxes no later than one year after the issuance of the final series of bonds, if applicable.

In addition, the special tax formula may provide for the following to be included in the special tax levels: (i) any amounts required to establish or replenish any reserve fund established in association with the indebtedness of the CFD, (ii) the accumulation of funds reasonably required for future debt service, (iii) amounts equal to projected delinquencies of special tax payments, (iv) the cost of acquisition, construction, furnishing or equipping of authorized facilities, (v) lease payments for existing or future facilities, (vi) costs associated with the release of funds from an escrow account, (vii) the costs of services, or (viii) any other incidental costs permitted by law, including, but not limited to, underwriter(s), bond counsel, disclosure counsel, municipal advisor, appraiser, absorption/pricing consultant, special tax consultant, engineering consultant, trustee or ongoing administrative costs of the City.

Equity of Special Tax Allocation Formula. The special tax formula shall be reasonable in allocating the CFD's payment obligations to parcels within the CFD. Exemptions from the special tax may be given to parcels which are (i) publicly owned, (ii) are held by a property owners' association, (iii) are used for a public purpose such as open space or wetlands, or (iv) are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easements.

Aggregate Tax Burden. It is the City’s policy that the maximum annual special tax applicable to any parcel used for residential purposes within a CFD formed by the City, together with (i) ad valorem property taxes, (ii) voter approved ad valorem property taxes in excess of 1% of the assessed value, (iii) the maximum annual special taxes levied by a CFD formed, or under consideration, by another public agency, which overlaps all or any portion of the City’s proposed CFD, and (iv) any maintenance, landscaping, storm drain or other impositions on the land in the CFD, and other similar annual government charges levied on parcels in the CFD, but excluding homeowners' association annual levies, shall not exceed the lesser of (i) 2.00% of the estimated sales price of the respective homes to be constructed in the CFD (as determined below), or (ii) any maximum specified in the Act. The foregoing requirement shall apply not only to property taxes, assessments and special taxes which are being levied at the time of formation of Local Goals and Policies for CFDs

449525.1
the CFD but such additional property taxes, assessments and special taxes which have been authorized but not yet levied, as estimated by the City.

The estimated home sales prices shall be based on the base sale price, excluding upgrades and lot premiums, of residential properties to be subject to the levy of the special tax, determined as of, or immediately prior to, the date of formation of the CFD. The base sales price of such residential properties shall be based upon (i) a price point analysis undertaken by a market absorption consultant retained by the City, or (ii) a price point analysis undertaken by a market absorption consultant retained by the applicant for a proposed CFD and which conclusions have been verified by a market absorption or similar consultant retained by the City.

The total projected aggregate tax burden (generally as described above with respect to the taxes, assessments and charges to be included in the tax burden calculations) for nonresidential property in a CFD will be considered by the City Council on a case-by-case basis.

The City reserves the right to limit the size of any series of bonds to take into account any actual and/or potential declines in home values to avoid the 2% threshold from being exceeded.

Maximum Special Tax Escalators.

Infrastructure Special Taxes. For maximum special taxes on residential property to fund infrastructure, improvements and/or facilities, there shall be no escalators on the maximum annual special taxes, except for minor escalators sufficient to cover reasonable increases in annual administrative expenses of the City. The City Council, in its sole discretion, may approve a rate and method of apportionment of special taxes with a fixed annual escalator not exceeding 2% annually on residential property to also accommodate an ascending bond debt service structure, provided that it has considered the potential benefits and risks compared to maximum special taxes without such an escalator. For non-residential maximum special taxes, the inclusion of any escalator will be determined on a case-by-case basis, subject to the equity provisions above.

Services Special Taxes. The maximum special taxes for services or maintenance shall be subject to a fixed and/or formulaic escalator as determined by the City at the time of development of the rate and method of apportionment of special taxes.

Notwithstanding the above, the annual increase, if any, in the maximum special tax for any parcel shall not exceed any maximum specified in the Act. Under no circumstances will special taxes levied in any fiscal year against any parcel of residential property as a result of a delinquency in the payment of the special tax applicable to any other parcel be increased by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquency or default.

Backup Special Tax. A backup special tax shall be required for any Development- Local Goals and Policies for CFDs

449525.1
Related CFD to protect against changes in density resulting in the generation of insufficient special tax revenues to pay annual debt service and administrative expenses.

The City Council may additionally or alternatively require as a condition of approval of the downsizing of the development in a Development-Related CFD at the request of the applicant or the applicant's successor-in-interest, as applicable, must prepay such portion of the special tax obligation as may be necessary in the determination of the City to ensure adequate debt service coverage exists with respect to any outstanding bonds or otherwise provides security in a form and amount deemed necessary by the CityCouncil to provide for the payment of debt service on the bonds. The City, in its sole discretion, may defer the issuance of bonds in order to avoid a potential circumstance where a backup tax could otherwise result in the increase of a tax on developed residential property to exceed the prior year tax by more than 2%.

Prepayment of Special Taxes at the Option of Property Owners. An option to permit the prepayment, in whole or in part, of the special tax obligation for an individual parcel shall be included in any rate and method of apportionment of special taxes to pay for public facilities. Such prepayment shall be permitted only if (i) the payment of all special taxes for such a parcel is current, and (ii) following such prepayment, the projected maximum special taxes that could be levied in any fiscal year on all remaining taxable property within the CFD will produce the minimum special tax revenues required for the CFD. No prepayment of a special tax levied to finance authorized services or maintenance shall be permitted.

Termination Dates of Special Taxes. The rate and method of apportionment of a special tax to pay for public facilities shall specify a fiscal year beyond which the special tax may not be levied on any parcel used for private residential purposes. In most cases, that final date will be ten years after the stated final maturity of any bonds issued. Such a special tax will cease to be levied when all bonds and the City’s administrative costs have been paid. A special tax to pay for public services or maintenance shall have no termination date unless established by the City Council.

Levy of Entire Parcels. Special taxes will only be levied on an entire county assessor's parcel, and any allocation of special tax liability of a county assessor’s parcel to leasehold or possessory interest in the fee ownership of such county assessor’s parcel shall bethe responsibility of the fee owner of such parcel and the City shall have no responsibility therefore and has no interest therein. Failure of the owner of any county assessor’s parcel to pay or cause to be paid any special taxes in full when due, shall subject the entire parcel to foreclosure in accordance with the Act.

5. APPRAISAL STANDARDS
The definitions, standards, and assumptions to be used in appraisals shall be determined by the City on a case-by-case basis, with input from City consultants and the bond underwriter. Generally, appraisals are expected to be substantially consistent with the Appraisal Standards for Land Secured Financings published by the California Debt Investment and Advisory Commission, originally dated May 1994 and modified July 2004, as may be subsequently modified (CDIAC Guidelines), among other applicable appraisal Local Goals and Policies for CFDs

449525.1
guidelines. The CDIAC Guidelines include requirements for appraised valuations being net of the special tax and require discounted bulk valuations in certain circumstances.

The CDIAC Guidelines are available on CDIAC’s website.

Notwithstanding the foregoing, if there is a conflict between the definitions, standards or assumptions in the CDIAC Guidelines and the corresponding definitions, standards or assumptions in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP), USPAP shall govern.

The appraiser shall be selected by the City and the appraisal shall be coordinated under the direction of the City. The selected appraiser must be willing to consent to the use of the appraisal in the bond official statement. The appraisal must be dated within three months of the date the bonds are priced, unless the City determines a longer time is appropriate.

6. FINDING OF PUBLIC INTEREST OR BENEFIT
The City Council may authorize the initiation of proceedings to form a CFD to finance authorized public improvements, or to provide authorized public services, if the City Council determines that the public improvements to be financed, or public services to be provided, or, in the case of a Development-Related CFD, the attributes of the new development will provide, in the opinion of the City Council, a public benefit to the community at large as well as the benefit to be derived by the properties within the CFD.

Examples of public benefit to the community at large may include, but are not limited to, the following:

A. Construction of a major public facility which meets a community need, including, but not limited to, a major arterial which will provide a vital roadway facility to alleviate congestion, water storage facilities which will remedy inadequate fire flow, storm drainage facilities which are a part of the storm drainage master plan, or public parks;
B. Provision of public infrastructure sooner than would otherwise be required for a particular development project;
C. Construction of public infrastructure to serve commercial or industrial projects, which will expand the City's employment and/or sales tax base; D. Provision of new development that meets specific land use goals and objectives of the City;
E. Provision of maintenance or other authorized public services, such as landscaping, lighting, storm drain, flood control or open space maintenance necessary to promote or maintain quality of life and public safety within existing or developing areas of the City.

7. ABSORPTION STUDY
Local Goals and Policies for CFDs

449525.1
An independent absorption study of any proposed residential development project within a proposed CFD, and in such other cases as may be appropriate, may be required prior to the issuance of special tax bonds for such CFD, depending on the status of development at the time of issuance. The independent absorption study shall be used (i) as a basis to verify proposed base pricing of the finished products (lots or completed buildings or dwelling units) subject to the levy of the special tax, (ii) to determine the projected market absorption of such finished products, and (iii) as a basis for verification that sufficient special tax revenues can be generated to fund the special tax requirement for the CFD. The City may require an independent absorption study of any proposed industrial or commercial development within a proposed CFD. Additionally, the projected absorption rates will be provided to the appraiser for consideration by the appraiser.

8. PERFORMING THE WORK
A. General. Facilities being financed may be provided by either the construction thereof by a developer or other person and acquired by the City using the bond and/or special tax proceeds (Acquisition) or by public contract let by the City or other public agency (Construction) or, in appropriate cases, both. The City shall have the final determination as to the method(s) of performing the work.

B. Acquisition. Acquisition will be permitted only for improvements or facilities to be constructed entirely upon land owned or controlled by the Applicant and then dedicated or sold to the City or other public agency. In general, improvements will be acquired if completed and ready for acceptance as determined by the City. The City may consider acquisition of discrete usable components of improvements or facilities, if the City determines that such acquisition is to the economic advantage of the City and provided that payment for a discrete component may only be made to the extent sufficient funds remain for the completion of improvements or facilities following such payment. Any work performed by Acquisition must be done under prevailing wage contracts and the Applicant shall be responsible for such compliance. The City will generally not allow for construction overhead, management and related costs. All Acquisition will be done by suitable agreement which shall provide for adequate retentions, performance bonds, and which shall not be assigned to the Applicant or any private lender. Timeframes for inspection, review of cost data, approval or denial of submittals and acquisition payments will be included in the acquisition agreement and the City shall be under no obligation to pay an acquisition price in excess of the amount of net bond proceeds and other sources, if applicable, available for the improvement or facility to be acquired. The City shall determine, in its sole discretion, the amount of net proceeds available for specific improvements or facilities.

C. Construction. Construction will be required for any work done on public lands or public rights-of-way and for projects involving existing development. The usually applicable public bidding rules of the City shall apply and any financing time schedule shall take into account a suitable period for the preparation of plans and specifications, bidding and notices thereof and bid opening. Mandatory bid hold Local Goals and Policies for CFDs

449525.1
periods shall take into account any applicable cash payment or comparable financing preparation periods.

9. LAND USE APPROVALS
Properties proposed to be included in a Development-Related CFD must have received such discretionary land use approvals as may, in the determination of the City, be necessary to enable the City to adequately evaluate the CFD, including the properties to be included and the improvements proposed to be financed. The City will issue bonds secured by the levy of special taxes within a Development-Related CFD only when (i) the properties included within such CFD have received those applicable discretionary land use approvals which would permit the development of such properties consistent with the assumptions utilized in the development of the rate and method of apportionmentof the special taxes for such CFD, and (ii) applicable environmental review has been completed. The final rate and method of apportionment of the special taxes approved at the time of the adoption of the resolution of formation of a CFD will be based upon the final map of the property within the CFD.

It is the City’s policy in granting approval for development such as zoning, specific plan or subdivision approval, to grant such approval as a part of the City's ongoing planning and land use approval process. In granting such approval, the City reserves such rights as may be permitted by law to modify such approvals in the future as the City Council determines the public health, safety, welfare and interest may require. Such approval, when granted, is subject to a condition that the construction of any part of the development does not, standing alone, grant any rights to complete the development of the remainder of such development. Construction of public improvements to serve undeveloped land financed through a CFD shall not vest any rights to the then existing land use approvals for the property assessed for such improvements, or to any particular level, type or intensity of development or use. Applications for a Development-Related CFD must include an express acknowledgment of this Policy and shall expressly waive on applicant’s behalf, and on behalf of their successors and assigns, any cause of action at law or in equity including, but not limited to, taking or damaging of property, for reassessment of property, or denial of any right protected by Title 42 USC Section 1983, which might be applicable to the properties to be assessed.

10. FORMATION PROCEEDINGS
The following are additional guidelines for the formation of a CFD.

Petition. For new development projects, a petition meeting the requirements of the applicable authorizing law will be required. The applicant is urged to obtain unanimous waivers of the election waiting period. The applicant must specify in the application any reasonably expected impediments to obtaining petitions, including from co-owners and/or lenders of record (where required).

Deposits and Reimbursements. All City staff and consultant costs, other direct costs, and indirect costs incurred by the City in the evaluation of CFD applications, the Local Goals and Policies for CFDs

449525.1
establishment of a CFD, and any non-contingent costs to be incurred by the City in connection with the sale and issuance of bonds, if any, will be paid by the applicant requesting the establishment of the CFD by advance deposit(s). The City shall not incur any expenses for processing and administering a CFD that are not paid by the applicant or from CFD bond proceeds. In general, expenses not chargeable to the CFD shall be directly borne by the proponents of the CFD.

Any application for the formation of a CFD shall be accompanied by an initial deposit in the amount determined by the City to fund initial staff and consultant costs, and other direct and indirect costs associated with CFD review and implementation and a signed deposit and reimbursement agreement in a form determined by the City. If additional funds are needed to offset costs and expenses incurred by the City, then the City shall make written demand upon the applicant for such funds. If the applicant fails to make any deposit of additional funds for the proceedings within ten business days (or such other period deemed acceptable by the City), then the City may suspend all proceedings until receipt of such additional deposit.

The City shall select all consultants necessary for the formation of the CFD and the issuance of bonds and funding of improvements, including the underwriter(s), bond counsel, disclosure counsel, municipal advisor, appraiser, market absorption/pricing consultant and the special tax consultant. The City further reserves the right to retain an engineering consultant to assist in the administration of an acquisition and funding agreement, if any, and/or other matters relating to the CFD or CFD improvements. The cost of such engineering consultant may be funded from developer deposit(s), and/or bond proceeds, as determined in the sole discretion of the City. Prior consent of the applicant shall not be required in the determination by the City of the consulting and financing team.

The City shall not accrue or pay any interest on any portion of the deposit refunded to any applicant or the costs and expenses reimbursed to an applicant. Neither the City, nor the CFD, shall be required to reimburse any applicant or property owner from any funds other than the proceeds of bonds issued by the CFD, or special taxes levied in the CFD, tothe extent such funds are available. Costs incurred by the developer or applicant shall not be subject to reimbursement from bond proceeds or special taxes.

Representatives. The City and the applicant shall each designate a representative for each financing district proceeding. The representatives shall be responsible for coordinating the activities of their respective interests and shall be the spokespersons for each such interest. The purpose of this requirement is to avoid duplication of effort and misunderstandings from failure to communicate effectively. In the case of the City, it allows the City’s consultants to report to a single official who will, in turn, communicate with other staff members.

Time Schedule. The final schedule of events for any proceeding shall be determined by the City, in consultation with its financing team and the applicant. Any changes will require approval by the appropriate City official. Time schedules will (unless specific exceptions are allowed) observe established City Council meeting schedules and agenda deadlines.

Local Goals and Policies for CFDs

449525.1
To the extent possible, financings will be scheduled to allow debt service to be placed on the tax rolls with a minimum of capitalized interest.

11. EXCEPTIONS TO THESE POLICIES
The City may find in limited and exceptional instances that a waiver to any of the abovestated policies is reasonable given identified special benefits to be derived from such waiver. Such waivers will only be granted by resolution of the City Council.

12. CONCLUSION
The purpose of the Policy is to provide guidance and to regulate the application for, and consideration of, the establishment of CFDs within the City.

This Policy should be reviewed and updated periodically to reflect changes in the market, the identification of other best practices, and to incorporate the City’s own experience or changing circumstances.

Any policy or goal stated herein may be supplemented, amended or waived by resolution amending this Policy, as adopted by the City Council.

CITY OF
SIERRA
MADRE

STAFF REPORT

PUBLIC WORKS SERVICES
DATE: July 14, 2026
TO: Honorable Mayor and City Council
FROM: Brian Dickinson, Director of Public Works
By: Eric Lozick, Management Analyst
SUBJECT:

Amendment No. 1 to the Lease - Communications Site Agreement with STC One LLC for the Communications Facility at Sierra Vista Park

RECOMMENDATION
It is recommended that the City Council:

1. Approve Amendment No. 1 to the Lease - Communications Site with STC One LLC for the communications facility at Sierra Vista Park; and

2. Authorize the City Manager to execute the First Amendment and any related documents necessary to implement the amendment, in a form approved by the City Attorney.

SUMMARY
On October 24, 2007, the City entered into a Lease - Communications Site with STC One LLC for the use of Cityowned property, together with associated access and utility easements, at Sierra Vista Park for the operation and maintenance of a communications facility. A Memorandum of Lease was recorded with the Los Angeles County Recorder on January 10, 2008, as Instrument No. 20080059631. The initial lease term commenced on August 1, 2007 and expired on July 31, 2017. The tenant exercised both five-year extension options provided under the lease, extending the current lease term through July 31, 2027.

The proposed First Amendment would extend the lease structure by adding one 15-year additional term followed by two additional five-year renewal terms. If all renewal terms are exercised, the lease would expire on July 31, 2052. The renewal terms would occur automatically unless the tenant provides written notice of nonrenewal at least 90 days before the expiration of the then-current term or is in default beyond any applicable cure period. The amendment also provides that the tenant has no right to extend the lease beyond the second five-year renewal term.

The First Amendment also reduces the monthly rent from $3,133.00 to $833.33 beginning January 1, 2027, subject to annual Consumer Price Index adjustments under the existing lease. The amendment includes a Rental Restart provision that would restore rent to the amount the existing $3,133.00 monthly rent would have reached, including CPI adjustments, if the tenant later subleases, licenses, or grants similar use or occupancy rights in the leased premises to an unaffiliated third party.

Staff recommends approval because the amendment preserves continued use of an existing municipal asset for telecommunications services, maintains a long-term revenue source for the City, and includes protections for the City if future third-party occupancy occurs or if the site has no subtenants after January 1, 2033.

DISCUSSION & ANALYSIS
The communications facility at Sierra Vista Park is located on City-owned property and has operated under the existing lease since 2007. The lease allows the tenant to use the premises for the purposes set forth in the agreement and includes access and utility easement rights necessary for the communications site. The current term expires on July 31, 2027 after the tenant's exercise of the two five-year extension options contained in the original lease.

The First Amendment would establish a longer-term lease framework before the current term expires. At the conclusion of the existing term, the tenant would receive one additional 15-year term and two additional five-year renewal terms. The amendment provides that these terms renew automatically unless the tenant gives timely notice that it does not intend to renew, or unless the tenant is in default beyond any applicable cure period when the next term would begin. If all terms are completed, the lease would end on July 31, 2052.

The amendment materially changes the City's rent terms. Beginning January 1, 2027, rent would be reduced from $3,133.00 per month to $833.33 per month, with continued CPI adjustments. The amendment also protects the City's upside if additional third-party use of the site occurs. If the tenant subleases, licenses, or grants similar rights to an unaffiliated third party after the First Amendment is fully executed, rent would restart at the amount the current $3,133.00 monthly rent would have reached if the reduction had not occurred, including CPI adjustments. The restart would begin on the first day of the first full month following commencement of installation of improvements by the future subtenant at the leased premises.

The First Amendment also adds a City termination right. On or after January 1, 2033, if there are no subtenants on the leased premises and no pending applications for subtenants, the City may terminate the lease by providing 12 months' prior written notice. The termination would not proceed if the Rental Restart occurs during that 12-month notice period. This provision gives the City a limited exit right if the site no longer supports subtenant activity, while preserving the tenant's ability to maintain the site if future occupancy materializes.

Because the amendment affects the duration and financial terms of a City property lease, staff recommends that the City Council approve the amendment by resolution and authorize the City Manager to execute the First Amendment and related implementation documents.

STRATEGIC PLAN RELATIONSHIP
Approval of this item supports Strategy OS 2.2: Develop and Maintain Long-Term Financial Planning, by preserving a long-term revenue-generating use of City-owned property.

ENVIRONMENTAL ANALYSIS
CEQA Project, exempt under: 14 CCR 15061(b)(3)- common sense exemption, because it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment

FISCAL IMPACT
Revenue from the lease is deposited to GL Account No. 10000.00000.47035. The First Amendment would reduce monthly lease revenue from $3,133.00 to $833.33 beginning January 1, 2027. This represents a reduction of $2,299.67 per month. For Fiscal Year 2026-27, the estimated revenue reduction would be $13,798.02 for the sixmonth period from January 2027 through June 2027, before any CPI adjustment. On an annualized basis, the reduction would be approximately $27,596.04, before CPI adjustments.

The reduced rent would remain subject to annual CPI adjustments under Section 4.B of the lease. If the Rental Restart provision is triggered by future unaffiliated third-party use, rent would increase to the amount the current $3,133.00 monthly rent would have reached if the reduction had not occurred, including applicable CPI adjustments, and would continue to escalate annually under the lease.

Staff has determined that the proposed amendment balances the short-term reduction in lease revenue against the long-term benefit of preserving occupancy of the site, maintaining a revenue-producing use of City-owned property, and retaining the City's ability to recover higher lease revenue if future third-party use occurs.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
1, First Amendment with STC One LLC Communications Site at Sierra Vista Park 07.14.2026.pdf 2, Original 877947 - Lease.pdf
Site Name: Sierra Madre
Business Unit #: 877947
446593.4
1 FIRST AMENDMENT TO
LEASE – COMMUNICATIONS SITE
Sierra Vista Park
THIS FIRST AMENDMENT TO LEASE – COMMUNICATIONS SITE (the “First Amendment”) is made effective this ____ day of ______________, 2026 (“Effective Date”), by and between the CITY OF SIERRA MADRE, a municipal corporation (hereinafter referred to as “City”) and STC ONE LLC, a Delaware limited liability company, by and through its Attorney In Fact, Global Signal Acquisitions II LLC, a Delaware limited liability company (hereinafter referred to as “Tenant”).

RECITALS
WHEREAS, City and Tenant entered into a Lease – Communications Site dated October 24, 2007, a memorandum of which was recorded in the official records of Los Angeles County, California (“Official Records”) on January 10, 2008 at Instrument No. 20080059631 (the “Lease”) whereby Tenant leased certain real property, together with access and utility easements, located in Los Angeles County, California from City (the “Leased Premises” or “Premises” as these terms are interchangeably used in the Lease), all located within certain real property owned by City (“City’s Property”); and
WHEREAS, the Premises may be used for the purposes only as set forth in the Lease; and WHEREAS, the Lease had an initial term that commenced on August 1, 2007 and expired on July 31, 2017. The Lease provides for two (2) extensions of five (5) years each, both of which were exercised by Tenant. According to the Lease, the final extension expires on July 31, 2027 (“Existing Term”); and
WHEREAS, City and Tenant desire to amend the Lease on the terms and conditions contained herein.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, City and Tenant agree as follows:

1. Recitals; Defined Terms. The parties acknowledge the accuracy of the foregoing recitals. Any capitalized terms not defined herein shall have the meanings ascribed to them in the Lease.

2. Additional Renewal Terms. At the conclusion of the Existing Term (July 31, 2027), Tenant shall be entitled to one (1) extension of fifteen (15) years (“15-year Additional Term”) and two (2) additional extensions of five (5) years each, with the final lease extension expiring on July 31, 2052 (each additional extension is referred to as an “Additional Renewal Term”). The Existing Term, 15-year Additional Term, and Additional Renewal Terms shall be collectively referred to as the “Lease Term”. Notwithstanding anything in the Lease to the contrary, the Lease Term shall automatically be extended for the 15-year Additional Term and each successive Additional Renewal Term, as the case may be, unless: (a) Tenant notifies City of its intention not to renew at least ninety (90) days prior to the expiration of the then current term; or (b) Tenant is in default beyond any applicable cure period on the date the 15-year Additional Term or any Additional Site Name: Sierra Madre
Business Unit #: 877947
446593.4
2 Renewal Term is to commence. Tenant shall have no right to extend the term of this Lease beyond the second Additional Renewal Term.

3. Rent Reduction. Commencing on January 1, 2027, the rent payable under the Lease will be reduced to Eight Hundred Thirty-Three and 33/100 Dollars ($833.33) per month (“Rent Reduction”) subject to annual increase in accordance with Section 4.B of the Lease. If, after full execution of this First Amendment, Tenant subleases, licenses or grants a similar right of use or occupancy in the Leased Premises to an unaffiliated third party, the rent will resume at the amount the current rent of $3,133.00 would have escalated to if the Rent Reduction had not occurred (“Rental Restart”) and will continue to escalate annually by CPI in accordance with Section 4.B of the Lease. The Rental Restart will commence upon the first (1st) day of the first (1st) full month following the commencement of installation of improvements by such future subtenant at the Leased Premises. Except as provided herein, all rent is subject to all other requirements of the Lease, including but not limited to Lease Sections 4.A and 13.

4. Notice. Tenant will promptly provide City notice for new all new tenants that will be using the Premises.

5. City Termination Rights. Notwithstanding anything in the Lease or this First Amendment to the contrary, if, on or after January 1, 2033, there are no subtenants on the Leased Premises, nor any pending applications for subtenants on the Leased Premises, City shall have the right to terminate the Lease at any time by providing Tenant twelve (12) months’ prior written notice; provided, however, that there shall be no termination of the Lease in the event the Rental Restart occurs within this twelve (12) month period.

6. Representations, Warranties and Covenants of City. City represents, warrants and covenants to Tenant as follows:
a) City is duly authorized to and has the full power and authority to enter into this First Amendment and to perform all of City’s obligations under the Lease as amended hereby. b) Tenant is not currently in default under the Lease, and to City’s knowledge, no event or condition has occurred or presently exists which, with notice or the passage of time or both, would constitute a default by Tenant under the Lease. c) City agrees to provide such further assurances as may be requested to carry out and evidence the full intent of the parties under the Lease as amended hereby, and ensure Tenant’s continuous and uninterrupted use, possession and quiet enjoyment of the Leased Premises under the Lease as amended hereby.
d) City acknowledges that the Leased Premises, as defined, shall include any portion of City’s Property on which communications facilities or other Tenant improvements exist on the date of this First Amendment.

7. IRS Form W-9. City agrees to provide Tenant with a completed IRS Form W-9, or its equivalent, upon execution of this First Amendment and at such other times as may be reasonably requested by Tenant. In the event the City’s Property is transferred, the succeeding City shall have a duty at the time of such transfer to provide Tenant with a completed IRS Form Site Name: Sierra Madre
Business Unit #: 877947
446593.4
3 W-9, or its equivalent, and other related paper work to effect a transfer in the rent to the new City.

City’s failure to provide the IRS Form W-9 within thirty (30) days after Tenant’s request shall be considered a default and Tenant may take any reasonable action necessary to comply with IRS regulations including, but not limited to, withholding applicable taxes from rent payments.

8. Counterparts. This First Amendment may be executed in separate and multiple counterparts, each of which shall be deemed an original but all of which taken together shall be deemed to constitute one and the same instrument.

9. Remainder of Lease Unaffected. In all other respects, the remainder of the Lease shall remain in full force and effect. Any portion of the Lease that is inconsistent with this First Amendment, language of the First Amendment shall be controlling.

10. Recordation. Tenant, at its cost and expense, shall have the right to record a memorandum of this First Amendment in the Official Records at any time following the execution of this First Amendment by all parties hereto.
[Signature pages follow]
Site Name: Sierra Madre
Business Unit #: 877947
446593.4
4 City and Tenant have caused this First Amendment to be duly executed on the day and year first written above.

CITY:

CITY OF SIERRA MADRE, a municipal
corporation
By:

Print Name:

Title:

City affirms that this First Amendment was
approved at a duly noticed public meeting
held on ______________ 2026
[Tenant Execution Page Follows]
Site Name: Sierra Madre
Business Unit #: 877947
446593.4
5 This First Amendment is executed by Tenant as of the date first written above.

TENANT:

STC ONE LLC, a Delaware limited liability
company
By: Global Signal Acquisitions II LLC, a
Delaware limited liability company
Its: Attorney In Fact
By:

Print Name:

Title:

CITY OF
SIERRA
MADRE

STAFF REPORT

FIRE DEPARTMENT
DATE: July 14, 2026
TO: Honorable Mayor and City Council
FROM: Brent Bartlett, Fire Chief
By: Amy Hsu, Administrative Analyst
SUBJECT:

Professional Services Agreement with Wittman Enterprises, LLC for Ambulance Billing and Collection Services

RECOMMENDATION
It is recommended that the City Council approve the Professional Services Agreement (“PSA”) with Wittman Enterprises, LLC for ambulance billing and collection services and authorize the City Manager to execute the Professional Services Agreement and any non-substantive modifications necessary to carry out the intent of the Agreement.

SUMMARY
The City currently contracts with Wittman Enterprises, LLC (“Wittman”) to provide ambulance billing and revenue recovery services for the Sierra Madre Fire Department ambulance transport program. Wittman has provided ambulance billing services to the City since 2018 and continues to perform billing, claims processing, insurance coordination, collections management, reporting, and related EMS revenue recovery services. The Fire Department recently completed negotiations with Wittman regarding updated pricing and contract terms. The proposed PSA establishes a revised contingency fee of 5.5% of net collections, replacing the City’s previous rate of

5.75%. The new PSA also modernizes the agreement structure and establishes an initial three-year term with two optional two-year extensions exercisable at the City’s discretion.

DISCUSSION & ANALYSIS
The City entered into an ambulance billing services agreement with Wittman Enterprises in 2018. Under the prior agreement, Wittman provided ambulance billing and collection services on a contingency fee basis equal to 5.75% of net collections received. As part of a routine operational and fiscal review, staff evaluated the current agreement and benchmarked comparable EMS billing agreements among public agencies. Based on that review, staff-initiated discussions with Wittman regarding updated pricing and contract structure. Following negotiations, Wittman agreed to reduce the contingency fee from 5.75% to 5.5% of net collections.

For example, in calendar year 2025, the Fire Department collected approximately $661,716 in EMS revenue. A reduction in the billing fee from 5.75% to 5.50% represents a savings of 0.25%, which equates to approximately $1,654 annually based on 2025 collections. Actual savings will vary depending on EMS revenue collected each year.

In addition to the revised pricing, the proposed PSA updates the City’s standard professional services agreement format and establishes a defined contract term structure. The proposed PSA provides for:

Ambulance billing and claims processing services
Insurance billing and follow-up
Revenue recovery and collection services
Monthly reporting and related administrative support
HIPAA compliance obligations through an incorporated Business Associate Agreement The PSA establishes:

An initial term of three (3) years
Two optional two-year extensions exercised solely at the City’s discretion A termination provision allowing either party to terminate the agreement upon ninety (90) days written notice The operational scope of services from the prior agreement is incorporated into the PSA as Exhibit A.

Compensation terms are separately established in Exhibit B to reflect the newly negotiated rate.

STRATEGIC PLAN RELATIONSHIP
Strategic Objective: Build an organization that is innovative, financially stable, and consistently delivers a high level of service. Goal 2. Build Fiscal Stability.

ENVIRONMENTAL ANALYSIS
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.

FISCAL IMPACT
Under the proposed PSA, Wittman will be compensated at a rate of 5.5% of net collections received for ambulance billing services. The revised rate is expected to reduce annual ambulance billing administrative costs compared to the prior agreement rate of 5.75%. Actual compensation paid under the agreement will fluctuate annually based upon ambulance transport volume and net collections received. Sufficient funding is included in the Fire Department's FY 2026-27 budget.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
Professional Services Agreement for Consultant Services (PSA) with Wittman Enterprises, LLC.pdf Exhibit A-Agreement for Professional Ambulance Billing Services between City of Sierra Madre and Wittman Enterprises, LLC.pdf EXHIBIT B COMPENSATION FEE SCHEDULE.pdf
Professional Services Agreement – Consultant Services

314779.v1

PROFESSIONAL SERVICES AGREEMENT

FOR CONSULTANT SERVICES
(City of Sierra Madre / Wittman Enterprises, LLC)

1. IDENTIFICATION
This PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the City of Sierra Madre, a California municipal corporation (“City”), and Wittman Enterprises, LLC, a California limited liability company (“Consultant”).

2. RECITALS

2.1. City has determined that it requires the following professional services from a consultant: professional ambulance billing, collection, claims management, reporting, and related EMS revenue recovery services.

2.2. Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.

2.3. Consultant represents that it has no known relationships with third parties, City Council members, or employees of City which would (1) present a conflict of interest with the rendering of services under this Agreement under Government Code Section 1090, the Political Reform Act (Government Code Section 81000 et seq.), or other applicable law, (2) prevent Consultant from performing the terms of this Agreement, or (3) present a significant opportunity for the disclosure of confidential information.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Consultant agree as follows:

3. DEFINITIONS

3.1. “Scope of Services”: Such professional services as are set forth in Consultant’s June 1, 2018 agreement to City attached hereto as Exhibit A and incorporated herein by this reference. Exhibit A is incorporated solely for the purpose of describing the Scope of Services to be performed by Consultant.

3.2. “Agreement Administrator”: The Agreement Administrator for this project is the City of Sierra Madre Fire Chief. The Agreement Administrator shall be the principal point of contact at the City for this project. All services under this Agreement shall be performed at the request of the Agreement Administrator. The Agreement Administrator will establish the timetable for completion of services and any interim milestones. City reserves the right to change this designation upon written notice to Consultant

3.3. “Approved Fee Schedule”: Consultant shall be compensated at a rate of 5.5% of net Professional Services Agreement – Consultant Services

314779.v1
collections received for ambulance billing and collection services performed pursuant to this Agreement.

3.4. Business Associate Agreement: The HIPPA Business Associate Agreement attached hereto as Exhibit A is incorporated herein by this reference and shall govern the parties’ obligations relating to protected health information and HIPPA compliance.

3.5. “Maximum Amount”: For budgeting and administrative purposes only, the maximum annual compensation payable under this Agreement shall not exceed $45,000 per fiscal year unless otherwise approved by the City in writing.

3.6. “Commencement Date”: July 1, 2026.

3.7. “Termination Date”: June 30, 2029

4. TERM
The term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall expire at 11:59 p.m. on the Termination Date unless extended by written agreement of the parties or terminated earlier under Section 15 (“Termination”) below. Consultant may request extensions of time to perform the services required hereunder. Such extensions shall be effective if authorized in advance by City in writing and incorporated in written amendments to this Agreement. Following the initial term, the City may, at its sole discretion, extend the Agreement for up to two (2) additional two-year terms by providing written notice to Consultant no less than ninety (90) days prior to expiration of the then-current term. The maximum total term of this Agreement, including all optional extensions, shall not exceed seven (7) years.

5. CONSULTANT’S DUTIES

5.1. Services. Consultant shall perform the services identified in the Scope of Services.

City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement.

5.2. Business License. Consultant shall obtain and maintain in force a City business license for the duration of this Agreement.

5.3. Campaign Contributions. This Agreement is subject to Government Code Section 84308. Consultant shall disclose any contribution in an amount of more than two hundred fifty dollars ($250) made within the preceding 12 months by the Consultant or the Consultant's agent to a City Officer or his or her committee. In the case of a contribution, Consultant shall request and provide a signed copy of the Campaign Contribution Disclosure Form to the City prior to, or concurrent with, the Consultant's execution of this Agreement.

6. SUBCONTRACTING

6.1. General Prohibition. This Agreement covers professional services of a specific Professional Services Agreement – Consultant Services

314779.v1
and unique nature. Except as otherwise provided herein, Consultant shall not assign or transfer its interest in this Agreement or subcontract any services to be performed without amending this Agreement.

7. COMPENSATION

7.1. General. City agrees to compensate Consultant for the services provided under this Agreement, and Consultant agrees to accept payment in accordance with the Fee Schedule in full satisfaction for such services. Compensation shall not exceed the Maximum Amount. Consultant shall not be reimbursed for any expenses unless provided for in this Agreement or authorized in writing by City in advance.

7.2. Invoices. Consultant shall submit monthly invoices identifying net collections received during the billing period and the corresponding compensation due pursuant to “Approved Fee Schedule”.

7.3. Taxes. City shall not withhold applicable taxes or other payroll deductions from payments made to Consultant except as otherwise required by law. Consultant shall be solely responsible for calculating, withholding, and paying all taxes.

7.4. Disputes. The parties agree to meet and confer at mutually agreeable times to resolve any disputed amounts contained in an invoice submitted by Consultant.

7.5. Additional Work. Consultant shall not be reimbursed for any expenses incurred for work performed outside the Scope of Services unless prior written approval is given by the City through a fully executed written amendment. Consultant shall not undertake any such work without prior written approval of the City.

8. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material, and all electronic files, including computer-aided design files, developed by Consultant in the performance of this Agreement (such written material and electronic files are collectively known as “written products”) shall be and remain the property of City without restriction or limitation upon its use or dissemination by City except as provided by law. Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant.

9. RELATIONSHIP OF PARTIES

9.1. General. Consultant is, and shall at all times remain as to City, a wholly independent contractor.

10. INDEMNIFICATION

10.1. Definitions. For purposes of this Section 10, “Consultant” shall include Consultant, its officers, employees, servants, agents, or subcontractors, or anyone directly or indirectly Professional Services Agreement – Consultant Services

314779.v1
employed by either Consultant or its subcontractors, in the performance of this Agreement. “City” shall include City, its officers, agents, employees and volunteers.

10.2. Indemnification. Each Party agrees to defend, indemnify, and hold harmless the other Party and its respective directors, officers, board members, employees, agents, and representatives from and against any and all claims, losses, liabilities, damages, expenses (including reasonable attorneys’ fees), judgments, or settlements arising from injury to persons or property, including death, to the extent caused by the negligence, acts, or omissions of the indemnifying Party, its employees, agents, contractors, or representatives, or from any breach or default in the performance of that Party’s obligations under this Agreement.

11. INSURANCE

11.1. Insurance Required. Consultant shall maintain insurance as described in this section and shall require all of its subcontractors, consultants, and other agents to do the same. Approval of the insurance by the City shall not relieve or decrease any liability of Consultant Any requirement for insurance to be maintained after completion of the work shall survive this Agreement.

11.2. Documentation of Insurance. City will not execute this agreement until it has received a complete set of all required documentation of insurance coverage. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. Consultant shall file with City:
• Certificate of Insurance, indicating companies acceptable to City, with a Best's Rating of no less than A:VII showing. The Certificate of Insurance must include the following reference: EMS Billing Services • Documentation of Best’s rating acceptable to the City. • Original endorsements effecting coverage for all policies required by this Agreement.
• Complete, certified copies of all required insurance policies, including endorsements affecting the coverage.

Insurance coverage shall be at least in the following minimum amounts:
• Professional Liability Insurance: $1,000,000 per claim, $2,000,000 aggregate
• General Liability:
• General Aggregate: $2,000,000
• Products Comp/Op Aggregate $2,000,000
• Personal & Advertising Injury $1,000,000
• Each Occurrence $1,000,000
• Fire Damage (any one fire) $ 50,000
• Medical Expense (any 1 person) $ 5,000
• Workers' Compensation:

Professional Services Agreement – Consultant Services

314779.v1
• Workers' Compensation Statutory Limits
• EL Each Accident $1,000,000
• EL Disease - Policy Limit $1,000,000
• EL Disease - Each Employee $1,000,000
• Automobile Liability
• Any vehicle, combined single limit $1,000,000
Any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements or limits shall be available to the additional insured.

Furthermore, the requirements for coverage and limits shall be the greater of (1) the minimum coverage and limits specified in this Agreement, or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured.

13. CONFLICT OF INTEREST DISCLOSURE
Pursuant to Government Code Section 1097.6, subdivision (c)(1), “[The] [C]onsultant's duties and services under this agreement shall not include preparing or assisting the public entity with any portion of the public entity's preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the public entity. The public entity entering this agreement shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. [C]onsultant's participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. [C]onsultant shall cooperate with the public entity to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by [Consultant] pursuant to this agreement.” Professional Services Agreement – Consultant Services

314779.v1

14. NOTICES
Any notices, bills, invoices, or reportsrequired by this Agreementshall be deemed received on: (i) the day of delivery if delivered by hand, email, or overnight courier service during Consultant’s and City’s regular business hours; or (ii) on the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the parties may, from time to time, designate in writing).

If to City
Brent Bartlett, Fire Chief
City of Sierra Madre
Fire Department
232 W. Sierra Madre Blvd.

Sierra Madre, CA 91024
Telephone: (626) 355-7135
Email:
[email protected]
If to Consultant
Corinne Wittman-Wong, CEO
11093 Sun Center Drive
Rancho Cordova, CA 95670
Telephone:

Email: [email protected]

15. TERMINATION
Either party may terminate this Agreement, with or without cause, upon ninety (90) days written notice to the other party. Consultant agrees to cease all work under this Agreement on or before the effective date of any notice of termination. All City data, documents, objects, materials or other tangible things shall be returned to City upon the termination or expiration of this Agreement.

Upon termination, Consultant shall be paid based on the work satisfactorily performed at the time of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

With courtesy copy to:

Aleks R. Giragosian, Esq.

Sierra Madre City Attorney
Colantuono, Highsmith & Whatley,
PC 790 E. Colorado Blvd., Ste. 850
Pasadena, Angeles, CA 91101
Telephone: (213) 542-5700
Email: [email protected]
With courtesy copy to:

Jon Riesa, Esq.

Signature Law Group
3400 Bradshaw Road Ste. A-4A
Sacramento, CA 95827
Telephone: (916) 2907616
Professional Services Agreement – Consultant Services

314779.v1
TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below. “CITY”
City of Sierra Madre
Authorized Signatories:

Signature:
“CONSULTANT”
Wittman Enterprises, LLC
Signature:

Printed: Printed:

Title: Title:

Date: Date:

Attest:

Signature:

Printed:

Title: City Clerk
Date:

Approved as to form:

Signature:

Printed:

Title: City Attorney
Date:

EXHIBIT B

COMPENSATION / FEE SCHEDULE
Consultant shall be compensated at a rate of 5.5% of net collections received by the City for ambulance billing and collection services performed pursuant to this Agreement.

No additional compensation or reimbursement shall be paid unless approved in writing by the City.

CITY OF
SIERRA
MADRE

STAFF REPORT

PUBLIC WORKS SERVICES
DATE: July 14, 2026
TO: Honorable Mayor and City Council
FROM: Brian Dickinson, Director of Public Works
By: Eric Lozick, Management Analyst
SUBJECT:

Update on Enterprise Fleet Management Program Implementation and Year 1 Vehicle Selection

RECOMMENDATION
It is recommended that the City Council provide direction on the implementation of the previously approved Enterprise Fleet Management Master Lease Agreement, including the adjusted Year 1 vehicle replacement plan and updated vehicle selection.

SUMMARY
On April 28, 2026, the City Council approved the Master Lease Agreement with Enterprise Fleet Management for municipal fleet vehicle replacement and maintenance services and authorized the City Manager to execute all necessary documents. The approved authorization included a not-to-exceed amount of $1,811,733 for the initial five-year lease program and authority for amendments or vehicle substitutions of equivalent type and value within that approved amount.

The July 14, 2026 item is returning at the City Council's request. This report summarizes the prior Council action, provides the updated implementation details from Enterprise Fleet Management, and identifies the adjusted Year 1 vehicle replacement plan and vehicle selection. The item does not request re-approval of the Master Lease Agreement, approval of a separate contract, or approval of a resolution.

Since the April 28 approval, staff and Enterprise Fleet Management have refined the Year 1 vehicle order list based on total cost of ownership, vehicle age, mileage, maintenance risk, fuel efficiency, operational need, upfit requirements, and current manufacturer ordering conditions. The adjusted Year 1 implementation plan consists of nine replacement vehicles and one additional Fire Department growth vehicle, within the previously approved notto-exceed amount.

The original Year 1 Plan B scenario contemplated 13 replacement vehicles. The current implementation plan has been reduced to 10 total Year 1 vehicles because several manufacturers have concluded production for the 2026 model year, and orders are now being placed for 2027 model year vehicles with annual manufacturer price increases. Unless the City Council provides additional direction, staff will continue implementation under the authority granted on April 28, 2026.

DISCUSSION & ANALYSIS
April 28, 2026 Council Action
During the April 28, 2026 City Council meeting, staff and representatives from Enterprise Fleet Management presented the proposed Fleet Management Program and associated Master Lease Agreement. The presentation addressed the City's current fleet challenges, proposed fleet replacement strategy, Sourcewell cooperative procurement structure, Master Equity Lease model, maintenance program, telematics, vehicle replacement timing, and anticipated fiscal impacts.

Following Council discussion and public comment, Council Member Kriebs made a motion to approve the Master Lease Agreement with Enterprise Fleet Management and authorize the City Manager to execute all necessary documents. Mayor Pro Tem Goss seconded the motion. The motion passed unanimously. That action established the contractual and administrative authority for the City to proceed with the Enterprise Fleet Management Program within the approved not-to-exceed amount.

Updated Implementation and Replacement Plan Options
The July 14 presentation documents the planning process that led to the current implementation plan. Staff and Enterprise began evaluating fleet challenges and long-term City objectives in May 2025. The effort included leadership alignment in September 2025, fleet inventory validation in December 2025, and replacement scenario development in early 2026.

Enterprise and City staff evaluated three initial Year 1 replacement scenarios:

Plan A, Aggressive Replacement: 21 vehicles five years or older, with an estimated Year 1 budget of $422,733.92 and estimated equity of $329,896.

Plan B, Moderate Replacement: 13 vehicles ten years or older, with an estimated Year 1 budget of $258,542.20 and estimated equity of $198,739.

Plan C, Conservative Replacement: 9 vehicles fifteen years or older, with an estimated Year 1 budget of $186,224.08 and estimated equity of $130,950.

City leadership identified Plan B as the preferred framework because it balanced fleet modernization, operational reliability, maintenance risk, and annual budget predictability. The original Plan B framework would modernize approximately one-third of the fleet in Year 1 and complete replacements over the following years.

After further review of manufacturer ordering windows, price changes, departmental needs, and vehicle upfit requirements, the current Year 1 implementation list has been adjusted. The updated list consists of nine replacement vehicles and one Fire Department growth vehicle for teh Deputy Fire Chief position. This change remains within the previously approved not-to-exceed amount and does not require a separate contract approval.

Adjusted Year 1 Vehicle Selection
For Council information, the adjusted Year 1 vehicle list is summarized below:

Replaced or Added
Unit
Department / Purpose Current Vehicle Year 1 Vehicle
Unit #1122 Police 2011 Ford Focus, S 4dr
Sedan
2027 Ford Explorer,
Active 4dr 4x2
Unit #2101 Police 2003 Chevrolet
Silverado 1500 HD
2026 Chevrolet
Silverado 1500, Work
Truck 4x2 Regular Cab
Unit #2093 Police 2011 Ford Crown
Victoria Police
Interceptor
2027 Ford Police
Interceptor Utility Base
AWD
Unit #6142 Police / Code
Enforcement
2011 Chevrolet Tahoe
Police
2026 Ford Maverick
Hybrid XLT FWD
SuperCrew
Unit #5103 Public Works Water 2009 Ford F-350
Chassis
2027 RAM 3500
Chassis Tradesman
4x2 Regular Cab
Unit #5119 Public Works Streets 2006 Chevrolet
Silverado 3500 Chassis
2027 RAM 3500
Chassis Tradesman
4x2 Regular Cab
Unit #5117 Public Works Streets 1999 Ford F-350
Chassis Cab
2027 RAM 2500
Tradesman 4x2
Regular Cab
Unit #5115 Public Works Water 2002 Chevrolet
Silverado 2500 HD
2027 RAM 2500
Tradesman 4x2
Regular Cab
Unit #5109 Public Works Water 2000 Ford F-350
Chassis
2027 RAM 2500
Tradesman 4x2
Regular Cab
Growth Vehicle Fire Department /
Deputy Fire Chief
Additional operational
vehicle
2026 Chevrolet Tahoe
Z71 4dr 4x4
Administrative Implementation
Vehicle availability, model year ordering windows, and upfit needs may continue to change during implementation.

Equivalent vehicle substitutions of comparable type and value, if needed, would be handled under the City Manager authority granted by the City Council on April 28, 2026, so long as the substitutions remain within the approved not-to-exceed amount and are reviewed in a form approved by the City Attorney. Any material change to the approved not-to-exceed amount, contract structure, or program scope outside the prior authorization would be returned to the City Council for consideration.

Maintenance, Telematics, and Operational Oversight
The Enterprise maintenance program will provide preventive maintenance scheduling, repair management, access to Enterprise's vendor network, and maintenance cost tracking for eligible vehicles. The updated Year 1 cost summary also includes telematics for 36 vehicles, including Enterprise vehicles and retained City-owned vehicles.

The City will continue to own and maintain certain vehicles outside the Year 1 replacement order. The July 14 cost summary identifies 26 retained City-owned vehicles under maintenance management at $6.00 per vehicle per month. Heavy equipment, specialized vehicles, and vehicles outside the Enterprise maintenance program will continue to be managed by the City as appropriate.

Fleet Mechanic Cost Allocation
The April 28 staff report identified that 70% of the Fleet Mechanic position cost, estimated at approximately $66,000 annually, would be reallocated from the Fleet Internal Service Fund to the Sewer Fund to reflect support provided to sewer operations. The remaining 30% would remain in the Fleet program. The July 14 receive-and-file item does not change that allocation.

STRATEGIC PLAN RELATIONSHIP
This item supports the City's goals of improving service delivery, modernizing internal operations, improving operational reliability, and supporting more predictable long-term asset management.

ENVIRONMENTAL ANALYSIS
Not a CEQA Project under: 14 CCR 15378(b)(5)- organizational or administrative activities

FISCAL IMPACT
There is no additional fiscal impact associated with this update. The Master Lease Agreement was previously approved in an amount not to exceed $1,811,733 and will be funded through Account No. 60000.83101.52500, Equipment Replacement Internal Services Fund.

The April 28 staff report identified first-year FY 2026/27 funding of $258,542 for the initial Year 1 plan. The updated July 14 implementation estimate identifies an adjusted Year 1 projected spend of $256,797.76, which remains within the prior FY 2026/27 budget framework and previously approved not-to-exceed amount. The July 14 item does not request a new appropriation, increase to the not-to-exceed amount, or approval of a separate contract.

Cost Component Amount
One-time down payment total $78,715.00
Estimated equity from resale ($36,000.00)
One-time down payment total, net of equity $42,715.00
Vehicle payments annual cost, including full
maintenance
$153,038.64
Total down payment plus lease payments $195,753.64
Telematics annual cost $9,072.00
Estimated annual maintenance cost for retained
City-owned vehicles
$51,972.12
Year 1 projected spend $256,797.76
Estimated equity at term of Year 1 vehicles ($132,063.00) The estimated equity at the term of the Year 1 vehicles is $132,063. This estimated equity would be returned to the City or applied to future vehicle replacement costs, subject to market conditions at the time of disposition.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
Enterprise Fleet Staff Report 04.28.2026.pdf

04.28.20026 Council meeting minutes Enterprise Fleet Management.pdf Enterprise Fleet Replacement Program Council Presentation 07.14.2026 Final.pdf

CITY OF

SIERRA MADRE

STAFF REPORT

PUBLIC WORKS SERVICES
DATE: April 28, 2026
TO: Honorable Mayor and City Council
FROM: Brian Dickinson, Director of Public Works
SUBJECT:

Approval of a Master Lease Agreement with Enterprise Fleet Management for Municipal Fleet Vehicle Replacement and Maintenance Services

RECOMMENDATION
It is recommended that the City Council:

1. Approve a Master Lease Agreement with Enterprise Fleet Management for the lease of twenty-nine (29) municipal fleet vehicles in an amount not to exceed $1,811,733 (details of the Master Lease Agreement shall be negotiated and worked out with Enterprise); and

2. Authorize the City Manager to execute the Agreement, and any amendments or vehicle subsitutions of equivalent type and value within the approved not-to-exceed amount, in a form approved by the City Attorney.

SUMMARY
The City of Sierra Madre maintains a municipal fleet of 37 vehicles with a total estimated book value of $422,225 to support operations across all City departments. The fleet's average age is 12.1 years, with an average odometer reading of 50,031 miles and an average holding period of approximately 30.8 years per vehicle. The City currently averages only 1.2 vehicle acquisitions per year, reflecting a historically reactive rather than planned approach to fleet replacement.

The age distribution of the City's current fleet reflects significant deferred replacement:

Fleet Age Threshold Number of Vehicles Percentage of Fleet Vehicles older than 2012 15 40%
Vehicles older than 2016 17 46%
Vehicles older than 2018 23 62%
This aging fleet presents compounding operational and safety concerns. The majority of the City's vehicles predate modern crash avoidance technologies, including Forward Collision Warning with Autobrake (introduced in 2018), Blind Spot Detection (2018), Rear Automatic Braking (2016), and Lane Departure Warning / Electronic Stability Control (2012). According to data from the Insurance Institute for Highway Safety and the Highway Loss Data Institute, vehicles equipped with these technologies reduce front-to-rear crashes by up to 50%, front-to-rear crashes with injuries by 56%, and backing crashes by up to 78%. The City's current fleet largely lacks these protections, increasing liability exposure and risk to employees and the public.
6/25/26, 11:52 AM print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 https://print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 1/4 Fleet replacement has historically been addressed on a vehicle-by-vehicle basis: when a unit exceeds its useful life, staff solicits quotes and seeks City Council authorization for individual purchases. Once acquired, vehicles are maintained in-house by the City's Fleet Mechanic. This model has resulted in no structured replacement schedule, inconsistent maintenance demands across departments, and increasing repair costs as vehicles age beyond their optimal lifecycle.

DISCUSSION & ANALYSIS
Procurement Process
During the summer of 2025, City staff engaged with Enterprise Fleet Management to evaluate alternative approaches to fleet procurement and maintenance. EFM is a national fleet management company with over 2,500 government agency clients and 150 local offices. The proposed Agreement is procured through the Sourcewell Cooperative Purchasing Program under Contract No. 030122 (vehicle acquisition) and Contract No. 240502 (fleet management services), satisfying the City's competitive procurement requirements pursuant to Government Code §54202 and the City's Municipal Code. The City's Sourcewell account number is Coop Vendor #40306.

Proposed Program Structure
The proposed program transitions the City from a traditional capital purchase model to a Master Equity Lease structure.

Under this arrangement:

Enterprise acquires vehicles on behalf of the City and leases them back under an open-ended lease agreement.

Vehicles are replaced on an approximate five (5) year cycle, targeting the optimal point in a vehicle's lifecycle before depreciation, fuel costs, and maintenance costs outweigh the cost of replacement.

At the end of each lease term, equity (resale value) is returned to the City or applied toward the cost of a replacement vehicle, reducing ongoing program costs.

Routine preventive maintenance — including oil changes, tire rotations, and standard inspections — is performed through EFM's network of authorized service providers, providing consistent service and cost predictability.

Under EFM's open-ended lease model, the City finances only the depreciation of the vehicle during the lease period rather than the full purchase price. This results in lower monthly principal payments compared to traditional outright purchase or conventional financing, while retaining equity at vehicle disposition.

Implementation Plan
The proposed implementation will occur in two phases:

Phase Vehicles Timing
Phase 1 13 vehicles Year 1 (upon City Council approval, FY 2027) Phase 2 8 vehicles Year 2 (subject to separate budget authorization, FY 2028) Phase 3 1 vehicle Year 3 (subject to separate budget authorization, FY 2029) Phase 4 2 vehicles Year 4 (subject to separate budget authorization, FY 2030) Phase 5 5 vehicles Year 5 (subject to separate budget authorization, FY 2031) Phase 1 vehicles were selected based on age, mileage, maintenance history, and operational criticality. The full 29-vehicle replacement program will standardize the fleet on an approximate five-year replacement cycle going forward, eliminating the current pattern of extended vehicle holding periods averaging over 30 years.

Phase 2 vehicles will be incorporated into the FY 2027-28 budget process and returned to the City Council for authorization prior to ordering.
6/25/26, 11:52 AM print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 https://print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 2/4 Phase 3 vehicles will be incorporated into the FY 2028-29 budget process and returned to the City Council for authorization prior to ordering.

Phase 4 vehicles will be incorporated into the FY 2029-30 budget process and returned to the City Council for authorization prior to ordering.

Phase 5 vehicles will be incorporated into the FY 2030-31 budget process and returned to the City Council for authorization prior to ordering.

Sustainability and Electric Vehicles
The program advances the City's sustainability objectives. Of the 29 vehicles proposed for replacement, seven (7) are anticipated to be electric or hybrid models, contributing to reduced greenhouse gas emissions, improved fuel economy, and long-term fuel cost savings consistent with the City's climate action goals and the State's clean fleet requirements.

The transition to electric vehicles will require supporting charging infrastructure. Funding for EV charging stations has not yet been identified and will not be included in the current Agreement. Staff will bring a separate capital project request to the City Council as part of the FY 2026-27 Capital Improvement Program and will pursue available grant funding, including potential sources such as the South Coast AQMD's AB 2766 Discretionary Fund, the California Air Resources Board's HVIP program, and other state and federal clean transportation grants.

Fleet Mechanic Position — Reallocation to Sewer Fund
As a result of transitioning routine preventive maintenance for the light-duty fleet to Enterprise-authorized vendors, the City will reallocate the Fleet Mechanic position from the Fleet Internal Service Fund (ISF) to the Sewer Fund. This reallocation reflects both the reduced in-house maintenance demands for the light-duty fleet and the ongoing and growing operational needs of the Sewer Maintenance and Operations Division.

The salary and benefit costs currently charged to the Fleet ISF will be shifted to the Sewer Fund, providing a more accurate cost allocation and partially offsetting the lease program costs within the General Fund. The Fleet Mechanic will continue to perform maintenance on heavy equipment and specialized vehicles where in-house service is feasible, and will provide support to the light-duty fleet as needed outside of the EFM maintenance program. This reallocation does not affect the employee's classification, compensation, or employment status.

Police Department Grant Vehicles
The Police Department has been awarded grant funding from Congresswoman Judy Chu's Office through the Department of Justice that may be used for the acquisition of police vehicles. Grant-funded vehicles may be subject to retention or use requirements that exceed the City's proposed five-year replacement cycle. Staff will evaluate applicable grant conditions and incorporate any affected vehicles into the overall fleet management strategy accordingly. Grant-funded police vehicles may be excluded from the EFM program or maintained as a separate category within the Master Lease Agreement depending on grant terms.

Maintenance Program
Routine preventive maintenance for non-specialized, light-duty fleet vehicles will be covered under EFM's maintenance program, which provides:

Scheduled oil changes, fluid services, and filter replacements Tire rotation and replacement
Brake service
Access to EFM's network of authorized local service providers Online fleet management portal for tracking maintenance history, costs, and vehicle utilization 6/25/26, 11:52 AM print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 https://print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 3/4 Heavy equipment, specialized vehicles, and any Police Department vehicles outside the program will continue to receive inhouse maintenance performed by the City's Fleet Mechanic.

STRATEGIC PLAN RELATIONSHIP
This item supports the City’s goals of improving service delivery, modernizing internal operations.

ENVIRONMENTAL ANALYSIS
Not a CEQA Project under: 14 CCR 15378(b)(5)- organizational or administrative activities

FISCAL IMPACT
The proposed Master Lease Agreement with Enterprise Fleet Management will be funded through Account No. 60000.83101.52500, Fleet Internal Services Fund. The total five-year lease cost for the 29 vehicles is $1,811,733, with firstyear funding in FY 2026/27 of $258,542 for acquisition of 13 vehicles. The downpayment for the lease program will be partially offset by the trade-in value of existing vehicles. By comparison, if the City were to continue purchasing and maintaining these vehicles in-house, the FY 2026/27 cost is estimated at $1.2 million including vehicle replacement, annual reserve charges, and maintenance costs. In addition, 70% of the Fleet Mechanic position cost, or approximately $66,000 annually, will be reallocated from the Fleet Internal Service Fund to the Sewer Fund to reflect support provided to sewer operations, while the remaining 30% will remain in the Fleet program. This approach reduces upfront capital outlay, provides a more predictable annual cost structure, and better aligns personnel costs with actual operational responsibilities, although it is more costly than purchasing the vehicles directly.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
Attachment 1 - Enterprise Fleet Cost Analysis
6/25/26, 11:52 AM print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 https://print.agendalink.app/v6/sierramadreca/69e69d2ee1de0e0043c80364 4/4

City of Sierra
Madre:

Fleet Replacement
Program
07/14/2026
Timeline of
Engagement
and Planning
Collaborative Program Development
The fleet replacement program was developed collaboratively by the City Manager, City Leadership, and Enterprise Fleet Management focusing on fiscal responsibility and sustainability.
o Initial Collaboration and Framework
• May 2025 meeting set the foundation for understanding fleet challenges and long-term city objectives.
o Leadership Alignment
• September 2025 reintroduction of EFM to new leadership clarified strategic direction for the project.
o Fleet Inventory Validation
• December 2025 completed inventory ensured accurate vehicle data including age, mileage, and condition.
o Replacement Scenario Development
• Early 2026 scenarios analyzed financial impact and operational benefits to guide decision-making year 1 replacement plan. 2 Evaluation of Replacement Plan Options
Evaluation Criteria
Plans were assessed based on equity, maintenance risk, fuel efficiency, operational impact, and financial sustainability. o Plan A: Aggressive Replacement (Estimated Year 1 Budget: $422,733.92 / Estimated Equity: $329,896) • Replaces 21 vehicles five years or older, leveraging pooled equity to reduce costs but increasing monthly payments. o Plan B: Moderate Replacement (Estimated Year 1 Budget: $258,542.20 / Estimated Equity: $198,739) • Targets 13 vehicles ten years or older with moderate equity and manageable payments, balancing modernization and cost. o Plan C: Conservative Replacement (Estimated Year 1 Budget: $186,224.08 / Estimated Equity: $130,950) • Focuses on replacing 9 vehicles fifteen years or older, minimizing monthly costs but requiring higher upfront investment.

City Leadership Recommendation:

Plan B ensures departments receive reliable vehicles aligned with operational needs and timing while modernizing one-third of the fleet in Year 1 and completes replacements over the next four years, balancing progress and cost. Prioritizing vehicles with high maintenance and fuel costs reduces breakdown risks and manages expenses efficiently. Spreading replacements over multiple years supports predictable budgeting and easier cost forecasting for the City. By replacing 13 vehicles we quickly build equity in the fleet to offset replacement costs. 3 Today’s Plan
Adjusted Vehicle Replacement Plan B (Estimated Year 1 Budget:
$258,542.20)
• Targets 9 vehicles ten years or older with moderate equity and manageable payments, balancing modernization and cost.
• 1 Additional growth vehicle to accommodate for the Deputy Fire Chief.
• The reason for the reduction from 13 to 10 in today's replacement recommendation: several manufacturers have concluded production for the 2026 Model Year. Orders are now being placed for 2027 Model Year vehicles, which include annual manufacturer price increases. As a result, the number of vehicles that can be accommodated within the targeted budget has been reduced. 4 One-Time Down Payment Total: $78,715.00
Estimated Equity from Resale: ($36,000.00)
One-Time Down Payment Total - Equity: $42,715.00
Vehicle Payments Annual Cost (Including Full
Maintenance): $153,038.64
Total Downpayment + Lease Payments $195,753.64
Telematics Annual Cost: $9,072.00
Estimated Annual Maintenance Cost (Sierra Madre
Owned) * Does not include any catastrophic repairs*: $51,972.12 Year 1 Projected Spend: $256,797.76
Estimated Equity at Term of Vehicles: ($132,063.00)
*Down Payment is for Aftermarket and is applied to principal amount* Vehicle Selection and Cost Analysis Process
o Total Cost of Ownership Analysis
• TCO analysis considered acquisition, maintenance, fuel, lifecycle, and resale value for each vehicle class compared across multiple manufacturers to find what makes the most financial sense for the City.
o Collaborative Decision-Making
• City leadership and department heads collaborated to ensure vehicles meet operational and mission-critical needs. EFM's team of upfit specialist met with the team to ensure proper upfit.
o Optimized Vehicle Selection
• The process ensures vehicles selected provide fiscal value and functional performance while mitigating the administrative workload on the City since every vehicle gets delivered turn-key ready.
5 6
Current Sierra Madre Vehicle
Vehicle Number Unit ID Department Year Make Model Series Estimated Odometer 1 #1122 Police 2011 Ford Focus S 4dr Sedan 32,978
2 #2101 Police 2003 Chevrolet Silverado 1500 HD LS 4x2 Crew Cab 6.6 ft. box 153 in. WB 67,414 3 #2093 Police 2011 Ford Crown Victoria Police Interceptor w/3.27 Axle 4dr Police Interceptor Sedan 91,586 4 #6142 Police 2011 Chevrolet Tahoe Police (Code Enforcement) 164,510 5 #5103 PW Water 2009 Ford F-350 Chassis XL 4x2 SD Regular Cab 141 in. WB DRW 58,296 6 #5119 PW Streets 2006 Chevrolet Silverado 3500 Chassis LS 4x2 Extended Cab 161.5 in. WB DRW 94,752 7 #5117 PW Streets 1999 Ford Chassis-Cabs Super Duty F-350 DRW Reg Cab 165" WB XL 132,500 8 #5115 PW Water 2002 Chevrolet Silverado 2500 HD Base 4x2 Regular Cab 8 ft. box 133 in. WB 82,240 9 #5109 PW Water 2000 Ford F-350 Chassis XL 4x2 SD Super Cab 161.8 in. WB DRW HD 66,961 Sierra Madre Replacement Vehicles
Vehicle Number Vehicle Type Year Make Model Series
1 SUV 2027 Ford Explorer Active 4dr 4x2
2 1/2 Ton Pickup 2026 Chevrolet Silverado 1500 Work Truck 4x2 Regular Cab 6.6 ft. box 126.5 in. WB 3 SUV 2027 Ford Police Interceptor Utility Base All-Wheel Drive 4 Compact Pickup 2026 Ford Maverick Hybrid XLT Front-Wheel Drive SuperCrew 4.5 ft. box 121.1 in. WB 5 Cab Chassis 2027 RAM 3500 Chassis Tradesman 4x2 Regular Cab 167.5 in. WB 6 Cab Chassis 2027 RAM 3500 Chassis Tradesman 4x2 Regular Cab 167.5 in. WB 7 3/4 Ton Pickup 2027 RAM 2500 Tradesman 4x2 Regular Cab 8 ft. box 140.5 in. WB 8 3/4 Ton Pickup 2027 RAM 2500 Tradesman 4x2 Regular Cab 8 ft. box 140.5 in. WB 9 3/4 Ton Pickup 2027 RAM 2500 Tradesman 4x2 Regular Cab 8 ft. box 140.5 in. WB 7 Vehicle
Number Replacement Vehicle Type Year Make Model Series
1 Unit #1122 SUV 2027 Ford Explorer Active 4dr 4x2
2 Unit #2101 1/2 Ton Pickup 2026 Chevrolet Silverado
1500
Work Truck 4x2 Regular Cab 6.6 ft.
box 126.5 in. WB
3 Unit #2093 SUV 2027 Ford Police
Interceptor Utility Base All-Wheel Drive
4 Unit #6142 Compact
Pickup 2026 Ford Maverick
Hybrid
XLT Front-Wheel Drive SuperCrew

4.5 ft. box 121.1 in. WB
5 Unit #5103 Cab Chassis 2027 RAM 3500 Chassis Tradesman 4x2 Regular Cab 167.5 in. WB
6 Unit #5119 Cab Chassis 2027 RAM 3500 Chassis Tradesman 4x2 Regular Cab 167.5 in. WB
7 Unit #5117 3/4 Ton Pickup 2027 RAM 2500 Tradesman 4x2 Regular Cab 8 ft. box 140.5 in. WB
8 Unit #5115 3/4 Ton Pickup 2027 RAM 2500 Tradesman 4x2 Regular Cab 8 ft. box 140.5 in. WB
9 Unit #5109 3/4 Ton Pickup 2027 RAM 2500 Tradesman 4x2 Regular Cab 8 ft. box 140.5 in. WB
10 Growth - Fire Chief FD Full Size
SUV 4x4 2026 Chevrolet Tahoe Z71 4dr 4x4
Quantity Monthly Cost
Full
Maintenance
Rate
Aftermarket Downpayment Total Annual Cost Estimated
Equity at Term Order Type
1 $1,041.02 $47.03 $12,000.00 $2,000.00 $13,056.60 $11,442.00 Factory Order
1 $978.96 $47.11 $12,000.00 $2,000.00 $12,312.84 $16,511.00 Factory Order
1 $1,431.25 $6.00 $24,000.00 $8,000.00 $17,247.00 $14,425.00 Factory Order
1 $883.36 $69.08 $12,000.00 $2,000.00 $11,429.28 $18,132.00 Factory Order
1 $1,332.56 $49.51 $21,793.00 $6,896.50 $16,584.84 $8,542.00 Factory Order
1 $1,255.65 $49.51 $15,000.00 $3,500.00 $15,661.92 $8,882.00 Factory Order
1 $1,278.53 $47.53 $22,103.00 $7,051.50 $15,912.72 $8,046.00 Factory Order
1 $1,201.14 $47.53 $15,267.00 $3,633.50 $14,984.04 $8,388.00 Factory Order
1 $1,201.14 $47.53 $15,267.00 $3,633.50 $14,984.04 $8,388.00 Factory Order
1 $1,669.99 $68.79 $8,000.00 $0.00 $20,865.36 $29,307.00 Dealership Stock
Client Owned Vehicles
Quantity Maintenance Management ($6 per vehicle/month) Monthly Total Annual Total 26 $6.00 $156.00 $1,872.00
Telematics Device
Quantity GeoTab Monthly Total Annual Total
36 $21.00 $756.00 $9,072.00
Year 1 Proposed Budget: $258,542.00
One-Time Down Payment Total: $78,715.00
Estimated Equity from Resale: ($36,000.00)
One-Time Down Payment Total - Equity: $42,715.00
Vehicle Payments Annual Cost (Including Full
Maintenance): $153,038.64
Total Downpayment + Lease Payments $195,753.64
Telematics Annual Cost: $9,072.00
Estimated Annual Maintenance Cost (Sierra Madre
Owned) * Does not include any catastrophic repairs*: $51,972.12 Year 1 Projected Spend: $256,797.76
Estimated Equity at Term of Vehicles: ($132,063.00)
*Down Payment is for Aftermarket and is applied to principal amount* Thank
you

CITY OF
SIERRA
MADRE

STAFF REPORT

CITY CLERK'S OFFICE
DATE: July 14, 2026
TO: Honorable Mayor and City Council
FROM: Laura Aguilar, City Clerk
SUBJECT:

Report, Discussion, Direction on Planning Commissioner Moran Request for Extended Leave of Absence

RECOMMENDATION
It is recommended that the City Council provide direction on Planning Commissioner Moran's request for an extended leave of absence.

SUMMARY
This report is brought before the City Council at the request of Planning Commissioner Christine Moran.

Commissioner Moran has requested an extended leave of absence during the period of July 1, 2026 to September 30, 2026. This is the second request for leave of absence in 2026 for Commissioner Moran. The first request was for the month of February 2026.

DISCUSSION & ANALYSIS
Commissioners, Board Members, and Committee Members serve at the pleasure of the City Council. The City Council depends on boards and commissions to render counsel and advice, keeping the flow of City business regular. Commission terms are generally for four-years, commencing July 1 and concluding on June 30 of the term-ending year.

On May 12, 2026, the City Council adopted a City Board and Commission Attendance Policy. This policy establishes attendance standards for regular meetings for individuals appointed to the City's Boards, Commissions, and/or Committees. The adopted policy sets expectations for attendance and includes procedures for reporting absences. The City Council maintains discretion for removing a member for excessive absences.

The procedure for reporting absences for a Regular Meeting are to be made to the Staff Liaison. Such reporting shall be made no less than 72 hours before a scheduled meeting, if possible. Staff Liaisons are responsible for maintaining attendance records for Body attendance. If a Member is anticiating an extended leave, they must notify the Mayor in writing. At the June 23, 2026, City Council Meeting, the City Council requested that this item be agendized for further discussion.

STRATEGIC PLAN RELATIONSHIP
Goal 2. Improve Communication and Collaboration

ENVIRONMENTAL ANALYSIS
Not a CEQA Project under: 14 CCR 15378(b)(5)- organizational or administrative activities

FISCAL IMPACT
There is no impact to the General Fund as a result of the recommended action.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
CC 26-01 Board & Commission Attendance Policy .pdf
Re_ [EXTERNAL] Maternity leave request - Outlook_Redacted 2026-0714.pdf Redacted Re Maternity leave request OUTLOOK February 2026.pdf

CITY OF SIERRA MADRE

CITY COUNCIL POLICY
POLICY NUMBER: CC 26-01 d
ADOPTED: May 12, 2026 6
AMENDED: _______________________
CITY MANAGER APPROVAL: _____________

CITY BOARD AND COMMISSION ATTENDANCE POLICY
I. PURPOSE:

The City of Sierra Madre’s Boards, Commissions and Committees are established to provide advice and recommendations to the City Council and the City Manager, and in the context of quasi-judicial Boards and Commissions such as the Planning Commission, to make independent decisions and take administrative actions. The Boards, Commissions and Committees of the City play an important role in providing broad representation of ideas into the processes, programs, and services of the City.

The Sierra Madre Municipal Code (SMMC) provides that the City Council may create by ordinance or resolution such advisory boards and commissions as in its judgment are required and may grant them such powers and duties as are consistent with the provisions of the SMMC. In addition, the SMMC allows the City Council, by motion, or the City Manager with City Council consent, to appoint temporary committees (Ad-Hoc) to render counsel and advice.

The SMMC is silent on the number of allowed or excused absences for members of a City Board, Commission, or Committee and this policy is intended to provide direction on a citywide attendance standard.

II. POLICY STATEMENT:

This policy establishes attendance standards for regular meetings for individuals appointed to City Boards, Commissions and Committees. It creates a systematic procedure for reporting absences which applies to all Boards, Commissions, and Committees whose members are appointed by the City Council or City Manager.

III. DEFINITIONS:

Body: City Boards, Commissions and Committees (including City-created task forces or Ad-Hoc Committees).

Member: An individual who has been appointed by the City Council or City Manager to a Body.

Absence: The failure of a Member to attend an agendized meeting.

Regular Meeting: A routinely scheduled meeting of the body, occurring at a fixed time and place.

Special Meeting: A meeting of the body held outside its regular meeting schedule to address specific issues that require timely attention.

Staff Liaison: The City staff member responsible for the coordination of meetings of the Body and facilitation of communications with the Members thereof.

IV. PROCEDURES:

Absences
Each Member of the Body is expected to attend every Regular Meeting or Special Meeting of the Body. Any Member who is absent in a fiscal year for more than 25% of the total Regular Meetings scheduled to be held in that fiscal year will be subject to potential termination of membership from the Body, upon action of the City Council. Where applying a 25% calculation creates other than a whole number, normal number rounding to the nearest whole number will be used. Attendance via teleconference shall not be considered an absence.

Reporting Absences
Absences from a Regular Meeting are to be reported through the Staff Liaison to the Body. Such reporting shall be made by email, in person, or by phone, and shall be made no less than 72 hours before a meeting, if possible. The Staff Liaison is responsible for keeping track of Body attendance records and providing this information on a quarterly basis to the City Clerk for record keeping.

Attendance via teleconference shall not be considered an absence.

Leave of Absence
If a Member will be out for an extended period, they must notify the Mayor in writing, in advance of the scheduled leave.

Removal
If a Member exceeds the number of allowed absences described in this policy, the City Manager or their designee, shall report this fact to the City Council, which may decide in its discretion that such absences warrant a declaration that the Member’s office shall become vacant.

V. APPLICABILITY:

This policy applies to any City Board, Commission, or Committee and the individuals appointed by the City Council or City Manager to serve in an official capacity.

VI. RESPONSIBILITY:

The Mayor, the City Manager, or their designees, the City Clerk’s Office, and the Department Head assigned as Staff Liaison to the Board, Commission, or Committee are responsible for administering this Policy.