Sierra Madre City Council
August 25, 2026

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Contractor’s performance under this Agreement. No change shall be made in Contractor’s project administrator without City’s prior written consent.

5.8. Prevailing Wages. This Agreement is subject to the prevailing wage law as more fully set forth in Section 8 (Labor Code), for all work performed under this Agreement for which the payment of prevailing wages is required under the California Labor Code. In particular, Contractor acknowledges that prevailing wage determinations are available for work performed under this Agreement.

5.9. Skilled and Trained Workforce Requirement. When the use of a skilled and trained workforce is required to complete a contract pursuant to existing law, this contract is subject to such requirement and Contractor agrees to use a skilled and trained workforce.

5.10. Permits and Approvals. Contractor shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary, if any, for Contractor’s performance of this Agreement including, but not limited to, professional licenses and permits.

5.11. Notification of Organizational Changes. Contractor shall notify the Agreement Administrator, in writing, of any change in name, ownership or control of Contractor’s firm or of any subcontractor. Change of ownership or control of Contractor’s firm may require an amendment to this Agreement.

5.12. Records. Contractor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such documents shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City. In addition, pursuant to Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds ten thousand dollars, all such documents and this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

6. SUBCONTRACTING AND ASSIGNMENT

6.1. General Prohibition On Assignment. This Agreement covers services of a specific and unique nature. Except as otherwise provided herein, Contractor shall not assign or transfer its interest in this Agreement or subcontract any services to be performed without amending this Agreement.

6.2. Contractor Responsible. Contractor shall be responsible to City for all services to be performed under this Agreement.

6.3. Subcontracting. Contractor shall not subcontract any portion of the performance contemplated and provided for herein unless (1) such subcontracting is specifically described in the proposal attached hereto or (2) the City provides prior written approval. In any event, Contractor shall supervise all work subcontracted by Maintenance Services Agreement

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Contractor in performing the services described in the Scope of Services and shall be responsible for all work performed by a subcontractor as if Contractor itself had performed such work. The subcontracting of any work shall not relieve Contractor from any of its obligations under this Agreement with respect to the services described in the Scope of Services. Contractor is obligated to ensure that any and all subcontractors performing any services under this Agreement shall be fully insured in all respects and to the same extent as set forth under Section 13 (Insurance), to City’s satisfaction.

6.4. Compensation for Subcontractors. Contractor shall be liable and accountable for any and all payments, compensation, and federal and state taxes to all subcontractors performing services under this Agreement. City shall not be liable for any payment, compensation, or federal and state taxes for any subcontractors.

7. COMPENSATION

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

7.2. Invoices. Contractor shall submit to City an invoice, on a monthly basis or as otherwise agreed to by the Agreement Administrator, for services performed pursuant to this Agreement. Each invoice shall identify the Maximum Amount, the services rendered during the billing period, the amount due for the invoice, and the total amount previously invoiced. Contractor shall include a copy of each subcontractor invoice, if any, for which reimbursement is sought in the invoice.

7.3. Taxes. City shall not withhold applicable taxes or other payroll deductions from payments made to Contractor except as otherwise required by law. Contractor 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 Contractor.

8. LABOR CODE

8.1. Prevailing Wage Law. Prevailing Wage Law. This Agreement is subject to the requirements of the prevailing wage laws, including, but not limited to, Labor Code Section 1720 et seq., and Labor Code Section 1770 et seq., as well as Code of Regulations, Title 8, Section 16000 et seq., which require payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. Contractor shall defend, indemnify, and hold harmless City, and its officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of failure or alleged failure of Contractor to comply with such prevailing wage laws.

8.2. Payment of Prevailing Wages. Contractor shall pay the prevailing wage rates for all work performed under this Agreement. When any craft or classification is Maintenance Services Agreement Mariposa
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omitted from the general prevailing wage determinations, the Contractor shall pay the wage rate of the craft or classification most closely related to the omitted classification.

8.3. Forfeiture. Contractor shall forfeit as a penalty to City Two Hundred Dollars ($200.00), or any greater penalty provided in the Labor Code, for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates for any work done under this Agreement employed in the performance of the Scope of Services by Contractor or by any subcontractor of Contractor in violation of the provisions of the Labor Code. In addition, the difference between such prevailing wage rates and the amount paid to each worker for each calendar day, or portion thereof, for which each worker was paid less than the prevailing wage rate shall be paid to each worker by Contractor.

8.4. Apprentices. Contractor shall comply with the provisions of Labor Code section 1777.5 concerning the employment of apprentices on public works projects.

Contractor shall be responsible for ensuring compliance by its subcontractors with Labor Code 1777.5.

8.5. Payroll Records. Pursuant to Labor Code section 1776, Contractor and any subcontractor(s) shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by Contractor in connection with this Agreement. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following: (1) The information contained in the payroll record is true and correct; and (2) The employer has complied with the requirements of Labor Code section 1811 and Labor Code section 1815 for any work performed by his or her employees on the public works project. The payroll records shall be certified and shall be available for inspection at all reasonable hours as required by Labor Code 1776.

Pursuant to Labor Code section 1776, such records must be maintained for at least three years after completion of work.

8.6. 8-Hour Work Day. This Agreement is subject to 8-hour work day and wage and hour penalty laws, including, but not limited to, Labor Code section 1810 and Labor Code section 1813. Contractor and any subcontractor(s) of Contractor shall strictly adhere to the provisions of the Labor Code regarding 8-hour work day and 40-hour work week requirements, and overtime, Saturday, Sunday, and holiday work.

Pursuant to the Labor Code, eight hours’ labor shall constitute a legal day’s work.

Work performed by Contractor’s employees in excess of eight hours per day, and 40 hours during any one week, must include compensation for all hours worked in excess of eight hours per day, or 40 hours during any one week, at not less than one and one-half times the basic rate of pay. Contractor shall forfeit as a penalty to City $25.00, or any greater penalty set forth in the Labor Code, for each worker employed in the execution of the work by Contractor or by any subcontractor(s) of Contractor, for each calendar day during which such worker is required or permitted to the work more than eight hours in one calendar day or more than 40 hours in any Maintenance Services Agreement

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one calendar week in violation of the Labor Code.

8.7. Registration with DIR. Contractor and any subcontractor(s) of Contractor shall comply with the provisions of Labor Code section 1771 and Labor Code section 1725.5 requiring registration with the Department of Industrial Relations (DIR).

Contractors shall be registered through the Department of Industrial Relation’s (DIR) Public Works Program for state and local public works contracts, for maintenance work valued at more than $15,000.

9. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material, and all electronic files, including computer-aided design files, developed by Contractor 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. Contractor 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 Contractor.

10. RELATIONSHIP OF PARTIES

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

10.2. No Agent Authority. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent.

Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees, except as set forth in this Agreement. Contractor shall not represent that it is, or that any of its agents or employees are, in any manner employees of City.

10.3. Independent Contractor Status. Under no circumstances shall Contractor or its employees look to the City as an employer. Contractor shall not be entitled to any benefits. City makes no representation as to the effect of this independent contractor relationship on Contractor’s previously earned California Public Employees Retirement System (“CalPERS”) retirement benefits, if any, and Contractor specifically assumes the responsibility for making such a determination. Contractor shall be responsible for all reports and obligations including, but not limited to:
social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation, and other applicable federal and state taxes.

10.4. Indemnification of CalPERS Determination. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

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11. INDEMNIFICATION

11.1. Definitions. For purposes of this Section 11, “Contractor” shall include Contractor, its officers, employees, servants, agents, or subcontractors, or anyone directly or indirectly employed by either Contractor or its subcontractors, in the performance of this Agreement. “City” shall include City, its officers, agents, employees and volunteers.

11.2. Contractor to Indemnify City. To the fullest extent permitted by law, Contractor shall indemnify, hold harmless, and defend City from and against any and all claims, losses, costs or expenses for any personal injury or property damage arising out of or in connection with Contractor’s alleged negligence, recklessness or willful misconduct or other wrongful acts, errors or omissions of Contractor or failure to comply with any provision in this Agreement.

11.3. Scope of Indemnity. Personal injury shall include injury or damage due to death or injury to any person, whether physical, emotional, consequential or otherwise, Property damage shall include injury to any personal or real property. Contractor shall not be required to indemnify City for such loss or damage as is caused by the sole active negligence or willful misconduct of the City.

11.4. Attorneys’ Fees. Such costs and expenses shall include reasonable attorneys’ fees for counsel of City’s choice, expert fees and all other costs and fees of litigation.

Contractor shall not be entitled to any refund of attorneys’ fees, defense costs or expenses in the event that it is adjudicated to have been non-negligent.

11.5. Defense Deposit. The City may request a deposit for defense costs from Contractor with respect to a claim. If the City requests a defense deposit, Contractor shall provide it within 15 days of the request.

11.6. Waiver of Statutory Immunity. The obligations of Contractor under this Section are not limited by the provisions of any workers’ compensation act or similar act.

Contractor expressly waives its statutory immunity under such statutes or laws as to City.

11.7. Indemnification by Subcontractors. Contractor agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section 12 from each and every subcontractor or any other person or entity involved in the performance of this Agreement on Contractor’s behalf.

11.8. Insurance Not a Substitute. City does not waive any indemnity rights by accepting any insurance policy or certificate required pursuant to this Agreement. Contractor’s indemnification obligations apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

12. INSURANCE

12.1. Insurance Required. Contractor shall maintain insurance as described in this section and shall require all of its subcontractors, Contractors, and other agents to do Maintenance Services Agreement

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the same. Approval of the insurance by the City shall not relieve or decrease any liability of Contractor. Any requirement for insurance to be maintained after completion of the work shall survive this Agreement.

12.2. 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 Contractor’s obligation to provide them. Contractor 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 (project name):
.
• 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.

13. Coverage Amounts. Insurance coverage shall be at least in the following minimum amounts:

Professional Liability Insurance: $1,000,000 per occurrence, $2,000,000 aggregate
General Liability:
• General Aggregate: $2,000,000
• Products Comp/Op Aggregate
• Personal & Advertising Injury
• Each Occurrence
• Fire Damage (any one fire)
• Medical Expense (any 1 person)
Workers’ Compensation:
$2,000,000
$1,000,000
$1,000,000
$ 50,000
$ 5,000
• Workers’ Compensation
• EL Each Accident
• EL Disease – Policy Limit
• EL Disease – Each Employee
Statutory Limits
$1,000,000
$1,000,000
$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

13.1. General Liability Insurance. Commercial General Liability Insurance shall be no Maintenance Services Agreement Mariposa
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less broad than ISO form CG 00 01. Coverage must be on a standard Occurrence form. Claims-Made, modified, limited or restricted Occurrence forms are not acceptable.

13.2. Worker’s Compensation Insurance. Contractor is aware of the provisions of Section 3700 of the Labor Code which requires every employer to carry Workers’ Compensation (or to undertake equivalent self-insurance), and Contractor will comply with such provisions before commencing the performance of the work of this Agreement. If such insurance is underwritten by any agency other than the State Compensation Fund, such agency shall be a company authorized to do business in the State of California.

13.3. Automobile Liability Insurance. Covered vehicles shall include owned if any, non-owned, and hired automobiles and, trucks.

13.4. Claims-Made Policies. If any of the required policies provide coverage on a claimsmade basis the Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work. Claims-Made Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

13.5. Additional Insured Endorsements. The City, its City Council, Commissions, officers, and employees of Sierra Madre must be endorsed as an additional insured for each policy required herein, for liability arising out of ongoing and completed operations by or on behalf of the Contractor. Contractor’s insurance policies shall be primary as respects any claims related to or as the result of the Contractor’s work.

Any insurance, pooled coverage or self-insurance maintained by the City, its elected or appointed officials, directors, officers, agents, employees, volunteers, or Contractors shall be non-contributory. All endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf. General liability coverage can be provided using an endorsement to the Contractor’s insurance at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10 and CG 20 37.

13.6. Failure to Maintain Coverage. In the event any policy is canceled prior to the completion of the project and the Contractor does not furnish a new certificate of insurance prior to cancellation, City has the right, but not the duty, to obtain the required insurance and deduct the premium(s) from any amounts due the Contractor under this Agreement. Failure of the Contractor to maintain the insurance required by this Agreement, or to comply with any of the requirements of this section, shall constitute a material breach of this Agreement.

13.7. Insurance Notices. Contractor shall provide immediate written notice if (1) any of the required insurance policies is terminated; (2) the limits of any of the required policies are reduced; (3) or the deductible or self-insured retention is increased.

Contractor shall provide no less than 30 days’ notice of any cancellation or material Maintenance Services Agreement

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change to policies required by this Agreement. Contractor shall provide proof that cancelled or expired policies of insurance have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two weeks prior to the expiration of the coverages. The name and address for Additional Insured Endorsements, Certificates of Insurance and Notices of Cancellation is: City of Sierra Madre, Attn: , 232 W. Sierra Madre Blvd., Sierra Madre, CA 91024.

13.8. Contractor’s Insurance Primary. The insurance provided by Contractor, including all endorsements, shall be primary to any coverage available to City. Any insurance or self-insurance maintained by City and/or its officers, employees, agents or volunteers, shall be in excess of Contractor’s insurance and shall not contribute with it.

13.9. Waiver of Subrogation. Contractor hereby waives all rights of subrogation against the City. Contractor shall additionally waive such rights either by endorsement to each policy or provide proof of such waiver in the policy itself.

13.10. Report of Claims to City. Contractor shall report to the City, in addition to the Contractor’s insurer, any and all insurance claims submitted to Contractor’s insurer in connection with the services under this Agreement.

13.11. Premium Payments and Deductibles. Contractor must disclose all deductibles and self-insured retention amounts to the City. The City may require the Contractor to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within retention amounts. Ultimately, City must approve all such amounts prior to execution of this Agreement. City has no obligation to pay any premiums, assessments, or deductibles under any policy required in this Agreement. Contractor shall be responsible for all premiums and deductibles in all of Contractor’s insurance policies. The amount of deductibles for insurance coverage required herein are subject to City’s approval.

13.12. Duty to Defend and Indemnify. Contractor’s duties to defend and indemnify City under this Agreement shall not be limited by the foregoing insurance requirements and shall survive the expiration of this Agreement as well as expiration or early termination of this Agreement.

14. MUTUAL COOPERATION

14.1. City Cooperation in Performance. City shall provide Contractor with all pertinent data, documents and other requested information as is reasonably available for the proper performance of Contractor’s services under this Agreement.

14.2. Contractor Cooperation in Defense of Claims. If any claim or action is brought against City relating to Contractor’s performance in connection with this Agreement, Contractor shall render any reasonable assistance that City may require in the defense of that claim or action.

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15. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, electronic mail or overnight courier service during Contractor’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).

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If to Consultant:

Name: Terry Noriega, President
Address: 6232 Santos Diaz St.

Irwindale, CA 91702
Email: [email protected]
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]

16. SURVIVING COVENANTS
The parties agree that the covenants contained in paragraph 5.10 (Records), paragraph

10.4 (Indemnification of CalPERS Determination), Section 11 (Indemnification), paragraph 12.7 (Claims-Made Policies), paragraph 12.12 (Waiver of Subrogation), paragraph 13.2 (Contractor Cooperation in Defense of Claims), Section 15 (Surviving Covenants), Section 17 (Interpretation of Agreement), and Section 18 (General Provisions) of this Agreement shall survive the expiration or termination of this Agreement, subject to the provisions and limitations of this Agreement and all otherwise applicable statutes of limitations and repose.

17. TERMINATION

17.1. City Termination. City may terminate this Agreement for any reason on five calendar days’ written notice to Contractor. Contractor 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.

17.2. Contractor Termination. Contractor may terminate this Agreement for a material breach by the City of this Agreement upon 30 days’ notice.

17.3. Compensation Following Termination. Upon termination, Contractor shall be paid based on the work satisfactorily performed at the time of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the services required by this Agreement. The City shall have the benefit of such work as may have been completed up to the time of such termination.

17.4. Remedies. City retains any and all available legal and equitable remedies for If to City:

City of Sierra Madre
Attn: Brian A Dickinson
232 W. Sierra Madre Blvd.

Sierra Madre, CA 91024
Telephone: (626) 355-7135
Email:[email protected]
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Contractor’s breach of this Agreement.

18. INTERPRETATION OF AGREEMENT

18.1. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of California.

18.2. Integration of Exhibits. All documents referenced as exhibits in this Agreement are hereby incorporated into this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Contractor with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the parties. Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed on by City and Contractor.

18.3. Headings. The headings and captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the language of the section or paragraph shall control and govern in the construction of this Agreement.

18.4. Pronouns. Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).

18.5. Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to the extent necessary to, cure such invalidity or unenforceability, and shall be enforceable in its amended form. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

18.6. No Presumption Against Drafter. Each party had an opportunity to consult with an attorney in reviewing and drafting this agreement. Any uncertainty or ambiguity shall not be construed for or against any party based on attribution of drafting to any party.

19. GENERAL PROVISIONS

19.1. Confidentiality. All data, documents, discussion, or other information developed or received by Contractor for performance of this Agreement are deemed confidential and Contractor shall not disclose it without prior written consent by City. City shall grant such consent if disclosure is legally required. All City data shall be returned to City upon the termination or expiration of this Agreement.

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19.2. Conflicts of Interest. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further agrees to file, or shall cause its employees or subcontractor to file, a Statement of Economic Interest with the City’s Filing Officer if required under state law in the performance of the services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

19.3. Non-assignment. Contractor shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any party other than Contractor.

19.4. Binding on Successors. This Agreement shall be binding on the successors and assigns of the parties.

19.5. No Third-Party Beneficiaries. Except as expressly stated herein, there is no intended third-party beneficiary of any right or obligation assumed by the parties.

19.6. Time of the Essence. Time is of the essence for each and every provision of this Agreement.

19.7. Non-Discrimination. Contractor shall not discriminate against any employee or applicant for employment because of race, sex (including pregnancy, childbirth, or related medical condition), creed, national origin, color, disability as defined by law, disabled veteran status, Vietnam veteran status, religion, age (40 and above), medical condition (cancer-related), marital status, ancestry, or sexual orientation.

Employment actions to which this provision applies shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; or in terms, conditions or privileges of employment, and selection for training. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, the provisions of this nondiscrimination clause.

19.8. Waiver. No provision, covenant, or condition of this Agreement shall be deemed to have been waived by City or Contractor unless in writing signed by one authorized to bind the party asserted to have consented to the waiver. The waiver by City or Contractor of any breach of any provision, covenant, or condition of this Agreement shall not be deemed to be a waiver of any subsequent breach of the same or any other provision, covenant, or condition.

19.9. Excused Failure to Perform. Contractor shall not be liable for any failure to Maintenance Services Agreement Mariposa
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perform if Contractor presents acceptable evidence, in City’s sole judgment that such failure was due to causes beyond the control and without the fault or negligence of Contractor.

19.10. Remedies Non-Exclusive. Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance from the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any or all of such other rights, powers or remedies.

19.11. Attorneys’ Fees. If legal action shall be necessary to enforce any term, covenant or condition contained in this Agreement, each party shall pay its own costs, including any accountants’ and attorneys’ fees expended in the action.

19.12. Venue. The venue for any litigation shall be the Superior Court Los Angeles County, California and Contractor hereby consents to sole jurisdiction in that court for purposes of resolving any dispute or enforcing any obligation arising under this Agreement.

19.13. Counterparts; Electronic Signatures. This Agreement may be signed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. Without limitation, “electronic signature” shall include faxed or emailed versions of an original signature, electronically scanned and transmitted versions (e.g., via pdf) of an original signature, or a digital signature.

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

Signature: Signature:

Printed: Printed:

Title: Title:

Date: Date:

Maintenance Services Agreement

Attest:

Signature:

Printed:

Title: City Clerk
Date:

Approved as to Form:

Signature:

Printed:

Title: City Attorney
Date:

WORKER’S COMPENSATION INSURANCE ACKNOWLEDGEMENT
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. If any class of employees engaged in work under this contract at the site of the Project is not protected under any Worker’s Compensation law, Contractor shall provide and shall cause each subcontractor to provide adequate insurance for the protection of employees not otherwise protected. Contractor shall indemnify and hold harmless City for any damage resulting from failure of either Contractor or any subcontractor to take out or maintain such insurance.

Date:

Signature
Printed Name
Title

CITY OF
SIERRA
MADRE

STAFF REPORT

PLANNING & COMMUNITY PRESERVATION
DATE: August 25, 2026
TO: Honorable Mayor and City Council
FROM: Clare Lin, Director of Planning & Community Preservation By: Krysta Elias, Permit Technician
SUBJECT:

Second Reading of Ordinance No. 1497 Amending Ch. 8.13 (Construction and Demolition Waste Disposal) of Title 8 (Health and Safety) of the Sierra Madre Municipal Code

RECOMMENDATION
It is recommended that the City Council conduct a Second Reading of Ordinance No. 1497 Amending Ch. 8.13 (Construction and Demolition Waste Disposal) of Title 8 (Health and Safety) of the Sierra Madre Municipal Code

SUMMARY
The City Council held a public hearing and unanimously approved the first reading of Ordinance No. 1497 at its regular meeting on July 14, 2026. The second reading of Ordinance No. 1497 is hereby presented before the City Council for consideration and adoption. For additional information regarding Ordinance No. 1497, see Attachment B.

DISCUSSION & ANALYSIS
The second reading of Ordinance No. 1497 includes revisions to the penalty enforcement procedure discussed during the continued public hearing and first reading on July 14, 2026. The City Council initially proposed these changes at its June 23, 2026 meeting.

STRATEGIC PLAN RELATIONSHIP
While this code amendment does not specifically correlate with the Strategic Plan, direction provided by the City Council may affect the following Strategic Plan items:

Organizational Sustainability, Goal 3: “Invest in Innovation and Technology.” Strategy OS 3.1: “Improve Electronic Interface/Payment Methods/Security.”

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
There is no fiscal impact as a result of the recommended action. Funding for the online permitting system is included in the FY 2026/27 Adopted Budget.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
Attachment B. First Reading Agenda Report
Attachment A. Ordinance 1497

CITY OF
SIERRA
MADRE

STAFF REPORT

PLANNING & COMMUNITY PRESERVATION
DATE: July 14, 2026
TO: Honorable Mayor and City Council
FROM: Clare Lin, Director of Planning & Community Preservation By: Krysta Elias, Permit Technician
SUBJECT:

Continued Public Hearing and First Reading of Ordinance No. 1497 Amending Ch. 8.13 (Construction and Demolition Waste Disposal) of Title 8 (Health and Safety) of the Sierra Madre Municipal Code

RECOMMENDATION
It is recommended that the City Council conduct the first reading of Ordinance No. 1497 amending Ch. 8.13 (Construction and Demolition Waste Disposal) of Title 8 (Health and Safety) of the Sierra Madre Municipal Code.

SUMMARY
The City of Sierra Madre has prepared Municipal Code Text Amendment No. 26-04 to Chapter 8.13 (Construction and Demolition Waste Disposal) to align the City’s construction and demolition (C&D) waste management requirements with current state standards and administrative practice. The ordinance updates administrative oversight and enforcement responsibilities, increases the minimum diversion rate from fifty percent to sixty-five percent consistent with state mandated CALGreen requirements, and formalizes the use of an online system to track C&D waste management plans, diversion data, and compliance for construction and demolition projects.

DISCUSSION & ANALYSIS
As a continuation of these amendments introduced at the first City Council reading on June 23, 2026, Municipal Code Text Amendment No. 26‑04 to Chapter 8.13 (Construction and Demolition Waste Disposal) further refines the City’s construction and demolition (C&D) waste management requirements to align with current state standards and existing administrative practice. The ordinance formalizes the use of performance security deposits for covered projects and establishes related civil penalty provisions to strengthen enforcement and support compliance with state-mandated diversion requirements.

Under the proposed ordinance, civil penalties are established consistent with Sierra Madre Municipal Code

1.12.010(B). The waste management plan (WMP) compliance official is authorized to impose civil fines, penalties, and forfeitures on any permittee, applicant, or other responsible person who violates any provision of Chapter 8.13 or fails to comply with applicable law. Consistent with California Government Code Section 36901, such penalties shall not exceed one thousand dollars per violation, per day.

In the event where a C&D applicant fails to comply with Section 8.13.070, the WMP compliance official may impose civil penalties that may be deducted from, or result in the forfeiture of, the required security deposit, consistent with new Section 8.13.080 (Civil Penalties). For enforcement purposes, each day that a violation continues, including each day on which required documentation is not submitted, may be treated as a separate violation subject to separate penalties, up to the maximum amount authorized by law.

These provisions are intended to provide clear, predictable consequences for noncompliance, improve collection of penalties, and ensure that adequate financial assurances are in place to support effective implementation of the City’s C&D waste diversion program.

STRATEGIC PLAN RELATIONSHIP
While this code amendment does not specifically correlate with the Strategic Plan, direction provided by the City Council may affect the following Strategic Plan items:

Organizational Sustainability, Goal 3: “Invest in Innovation and Technology.” Strategy OS 3.1: “Improve Electronic Interface/Payment Methods/Security.”

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
There is no fiscal impact as a result of the recommended action. Funding for the online permitting system is included in the FY 2026/27 Adopted Budget.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
Ordinance 1497_Draft.pdf
Clean_Chapter_8.13___C&D WASTE DISPOSAL.pdf
Red Lines_Chapter_8.13___C&D WASTE DISPOSAL.pdf
273251.1
ORDINANCE NO. 1497

AN ORDINANCE OF THE CITY OF SIERRA MADRE, CALIFORNIA,
AMENDING CHAPTER 8.13 (CONSTRUCTION AND DEMOLITION
WASTE DISPOSAL) OF TITLE 8 (HEALTH AND SAFETY) OF THE

SIERRA MADRE MUNICIPAL CODE

RECITALS
WHEREAS, Chapter 8.13 of the Sierra Madre Municipal Code currently designates the Director of Public Works as the official responsible for regulating construction and demolition waste disposal within the City; and WHEREAS, it is necessary to amend Chapter 8.13 to replace references to the “Director of Public Works” with the “Director of Planning and Community Preservation” in order to accurately reflect current administrative practice and clarify departmental responsibility; and
WHEREAS, Chapter 8.13 is further proposed to increase the minimum required diversion rate from fifty percent to sixty-five percent, consistent with the California Green Building Standards Code (CALGreen), to support regional and state solid waste diversion goals; and
WHEREAS, the City has revised its fee schedule to include fees for waste management plan review, inspections, and performance-based security deposits in lieu of performance bonds, in order to streamline compliance, reduce staff time, and ensure cost recovery; and
WHEREAS, the City will implement an online tracking system to facilitate electronic reporting and verification of construction and demolition waste diversion, improve data accuracy, and enhance monitoring of diversion performance in accordance with City requirements.

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

SECTION 1. Recitals. The Recitals above are true and correct and incorporated herein by this reference.

SECTION 2. Amendment and Addition. Chapter 8.13 (Construction and Demolition Waste Disposal) of Title 8 (Health and Safety) of the Sierra Madre Municipal Code is amended to read as shown in Exhibit 1 and attached herein, with additions denoted by underlined text and deletions denoted by struck-through text.

SECTION 3. CEQA. The City Council has considered all of the evidence in the record, including the staff reports, the testimony received during the public hearing on the matter held by the City Council, and hereby determines that the text amendments to Chapter 273251.1

8.13 (Construction and Demolition Waste Disposal) of Title 8 (Health and Safety) of the Sierra Madre Municipal Code will not have a significant effect on the environment and is therefore exempt from CEQA review, pursuant to Title 14, Section 15061(b)(3) of the California Code of Regulations.

SECTION 4. Severability. If any sections, subsections, subdivisions, paragraph, sentence, clause or phrase of this Ordinance or any part hereof or exhibit hereto is for any reason held to be invalid, such invalidity shall not affect the validity of the remaining portions of this Ordinance or any part thereof or exhibit thereto. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraph, sentences, clauses or phrases be declared invalid.

SECTION 5. Certification. Pursuant to Government Code Section 36932, the City Clerk shall certify the passage, approval, and adoption of this Ordinance by the City Council.

SECTION 6. Publication. Pursuant to Government Code Section 36933, the City Clerk shall cause this Ordinance to be published or posted.

SECTION 7. Records. Pursuant to Government Code Section 40801, proof of certification and publication shall be entered in the book of Ordinances of the City Council.

SECTION 8. Effective Date. Pursuant to Government Code Section 36937, this Ordinance shall take effect thirty days after its adoption.

PASSED, APPROVED, AND ADOPTED this 25th day of August, 2026. __________________________
Kristine Lowe, Mayor
I HEREBY CERTIFY that the foregoing Ordinance was introduced by first reading on the 14th day of July 2026, and duly adopted at a regular meeting held on the 25th day of August 2026, by the City Council of the City of Sierra Madre, California, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:
273251.1
___________________________
Laura Aguilar, City Clerk
Approved as to form:
____________________________
Aleks Giragosian, City Attorney
Title 8 - HEALTH AND SAFETY
Chapter 8.13 CONSTRUCTION AND DEMOLITION WASTE DISPOSAL Sierra Madre, California, Code of Ordinances Created: 2025-10-24 10:23:12 [EST] (Supp. No. 39)

Chapter 8.13 CONSTRUCTION AND DEMOLITION WASTE DISPOSAL Sections:

8.13.010 Findings.

A. Under California law as embodied in the California Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq.), the city of Sierra Madre is required to prepare, adopt, and implement source reduction and recycling plans to reach landfill diversion goals, and is required to make substantial reductions in the volume of waste materials going to landfills or face fines of up to ten thousand dollars per day.

B. In order to meet these goals, it is necessary that the city promote the reduction of solid waste, and reduce the stream of solid waste going to landfills.

C. Waste from construction, demolition, and renovation of buildings represents a significant portion of the volume of waste currently generated in the city of Sierra Madre, and much of this waste is particularly suitable for recycling and reuse.

D. The city's commitment to the reduction of waste requires the establishment of programs for recycling and salvaging of construction and demolition waste.

E. The adoption of Chapter 8.13 will further the public health, safety and general welfare relative to solid waste disposal.

F. The adoption of Chapter 8.13 is consistent with the general plan's goals, objectives and policies. (Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.020 Definitions.

For the purposes of this chapter, words and phrases should be construed as follows, unless it is apparent from its context that a different meaning is intended:
"Applicant" or "C&D applicant" means any individual, firm, limited liability company, association, partnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever who applies to the city for the applicable permits to undertake any construction, demolition, or renovation project within the city.
"C&D recycling center" means a facility that receives only C&D material that has been separated for reuse prior to receipt, in which the residual or disposed amount of waste in the material is less than ten percent of the average weight of material separated for reuse received by the facility over a one-month period. "City-sponsored project" means a project constructed by the city or a project receiving fifty percent or more of its financing from the city.
"Construction" means the building of any facility or structure or any portion thereof including any tenant improvements to an existing facility or structure.
"Construction and demolition material" or "C&D material" means building materials and solid waste resulting from construction, remodeling, repair, cleanup or demolition operations that are not hazardous as defined in California Code of Regulations, Title 22, Section 66261.3, et seq. This term includes, but is not limited to, asphalt, EXHIBIT 1
Created: 2025-10-24 10:23:12 [EST]
(Supp. No. 39)

concrete, Portland cement concrete, brick, lumber, gypsum wallboard, cardboard, and other associated packaging, roofing material, ceramic tile, carpeting, plastic pipe and steel. The material may be commingled with rock, soil, tree stumps, and other vegetative matter resulting from land clearing and landscaping for construction or land development projects.
"Conversion rate" means the rate set forth in the standardized conversion rate table established pursuant to applicable CalGreen requirements for use in estimating the volume or weight of materials identified in the waste management plan.means the rate set forth in the standardized conversion rate table approved by the city pursuant to this chapter for use in estimating the volume or weight of materials identified in the waste management plan.
“Compliance Report” means the documentation submitted by an applicant demonstrating compliance with the construction and demolition waste diversion requirements of Sections 4.408.1 and 5.408.1 of Title 24, Part 11 of the California Code of Regulations (CALGreen), including records sufficient to verify that at least sixty-five percent of nonhazardous construction and demolition waste was recycled and/or salvaged for reuse. "Covered project" shall have the meaning set forth in Section 8.13.030. "Deconstruction" means the careful dismantling of buildings and structures in order to salvage as much material as possible.
"Demolition" means the decimating, razing, ruining, tearing down or wrecking of any facility, structure, pavement or building, whether in whole or in part, whether interior or exterior. "Disposal" means the final deposition of construction and demolition of inert materials at a landfill. "Diversion requirement" means the diversion of at least fifty percent sixty-five percent of the total nonhazardous construction and demolition material generated by a project via reuse, recycling, or deposition at an inert backfill site or inert disposal facility, consistent with the requirements of Sections 4.408.1 and 5.408.1 of Title 24, Part 11 of the California Code of Regulations (CALGreen), unless the applicant has been granted an exemption pursuant to Section 8.13.0870., in which case the diversion requirement shall be the maximum feasible diversion rate established by the waste management plan compliance official in relation to the project. "Divert" means to use material for any purpose other than disposal in a landfill or transformation facility. "Franchisee" means a company that possesses a valid permitcontract or agreement from the city of Sierra Madre to collect and transport solid waste from individuals or businesses for the purpose of recycling or disposal under the city of Sierra Madre's name.
"Inert backfill site" means any location other than an inert landfill or other disposal facility to which inert materials are taken for the purpose of filling an excavation, shoring, or other soils engineering operation. "Inert disposal facility/inert waste landfill" means a disposal facility that accepts only inert waste such as soil and rock, fully cured asphalt paving, uncontaminated concrete (including fiberglass or steel reinforcing rods embedded in concrete), brick, glass, and ceramics, for land disposal. "Inert solids/inert waste" means nonliquid solid resources including, but not limited to, soil and concrete, that do not contain hazardous waste or soluble pollutants at concentrations in excess of water quality objectives established by a regional water board pursuant to Division 7, Section 13000, et seq. of the California Water Code and does not contain significant quantities of decomposable solid resources. "Mixed material recycling facility" means a processing facility that accepts loads of mixed construction and demolition debris for the purpose of recovering reusable and recyclable materials and disposing the nonrecyclable residual materials.
“Performance security” means a refundable deposit provided to the City in accordance with Section 8.13.050 to ensure compliance with project requirements and returned upon verification that all applicable conditions, including documentation and diversion standards, have been satisfied.

Created: 2025-10-24 10:23:12 [EST]
(Supp. No. 39)

"Performance security" means any performance bond, surety bond, money order, letter of credit, certificate of deposit, or restricted bank account, provided to the city pursuant to Section 8.13.040(D). “Project valuation” means the total value of the structure proposed to replace an existing structure in a demolition project, as indicated on the building permit application or applications submitted to the city to obtain permits for the new construction.
"Recycling" means the process of collecting, sorting, cleansing, treating, and reconstituting materials for the purpose of using the altered form in the manufacture of a new product. Recycling does not include burning, incinerating, or thermally destroying solid waste.
"Renovation" means any change, addition or modification in an existing structure. "Reuse" means the use, in the same or similar form as it was produced, or a material which might otherwise be discarded.
"Salvage" means the controlled removal of construction and demolition material from a permitted building or construction site for the purposes of recycling, reuse, or storage for later recycling or reuse. "Separated for reuse" means materials, including commingled recyclables, that have been separated or kept separate from the solid waste stream for the purpose of additional sorting or processing those materials for reuse or recycling in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the secondary makings markets as determined by the city.
"Waste management plan" or "WMP" means a completed waste management plan form, approved by the city for the purpose of compliance with this chapter, submitted by the applicant for any covered or noncovered project.
"Waste management plan compliance official" means the director of planning public works or his/her designee.
(Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.030 Projects subject to waste management plan requirement.

A. Mandatory Compliance. All projects within the city, as further described in this section, and including citysponsored projects, that alter, reconstruct, or eliminate fifty percent or more of a building’s floor area or monetary value, or that the city reasonably determines have a valuation of fifty-thousand dollars which the city reasonably determines will costhas a valuation or more per pursuant to Section 105.3 of the California Building Code or Section R105.3 of the California Residential Code,, of fifty thousand dollars or more to construct shall be subject to comply with the WMP requirements of Section 8.13.040. Failure to comply with any of the terms of this chapter shall be punishable as a misdemeanor pursuant to Chapter 1.12 of this code.

B. Voluntary Compliance. Applicants for permits for construction, demolition, and renovation projects which the city reasonably determines will cost less than fifty thousand dollars to construct shall be encouraged to divert at least fifty percent sixty-five percent of all project-related construction and demolition debris. Such applicants shall be required to make a good faith effort toward diversion.

C. Compliance as a Condition of Approval. Compliance with the provisions of this chapter shall be a condition of approval on any building or demolition permit issued by the city and the building official shall provide the applicant written notice of that fact.

D. Projects Exempt from Waste Management Plan Requirement. A waste management plan and deposit shall not be required for the following projects:

1. Emergency demolition required to protect public health and safety; Created: 2025-10-24 10:23:12 [EST]
(Supp. No. 39)

2. Work for which a building or demolition permit is not required;

3. Work for which only a plumbing, only an electrical, or only a mechanical permit is required;

4. Projects where no structural building modifications are required;

5. Roofing projects that do not include tear-off of existing roof;

6. Seismic tie-down projects;

7. Projects where a franchised hauler has been selected for C&D waste disposal per city requirements.

1. Work for which a building or demolition permit is not required;

2. Roofing projects that do not include tear-off of existing roof;

3. Work for which only a plumbing, only an electrical, or only a mechanical permit is required;

4. Seismic tie-down projects;

5. Projects where no structural building modifications are required;

6. Emergency demolition required to protect the public health and safety. (Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.040 Submission of waste management plan.

A. WMP Forms. Applicants for building or demolition permits subject to mandatory compliance pursuant to Section 8.13.040(A) valued at more than fifty thousand dollars shall complete and submit a waste management plan (“WMP”), unless the application certifies that the applicant has either complete and submit a waste management plan ("WMP") on a form approved by the waste management plan compliance official. Applicants who employed the services of a contractor holding a valid permit in accordance with the contractor’s exclusion in Chapter 8.12 or selected a franchise hauler, in which the applicant shall be exempt from the filing of a WMP submitting a WMP. A completed WMP shall indicate include all of the following:

1. The estimated volume or weight of C&D material or debris, by material type, to be generated;

2. The maximum volume or weight of such materials that can be feasibly be diverted via reuse or recycling;

3. The vendor or facility that the C&D applicant proposes to use to collect or receive that material;

4. The estimated volume or weight of C&D materials that will be sent to a disposal site; and

5. The estimated volume or weight of inert materials to be sent to an inert disposal facility.

B. Calculating Volume and Weight of Debris. In estimating the volume or weight of materials identified in the WMP, the C&D applicant shall use conversion rates approved by the city for this purpose or as provided in

8.13.070(B).

C. For city-sponsored projects, the general contractor shall prepare the waste management plan and submit it to the WMP compliance official submit a WMP prior to issuance of the notice to proceed.D.Upon approval of the waste management plan and prior to as required for finalization of demolition or construction permits under Section 8.13.050(A), the C&D applicant or permittee shall as WMP deposit the following performance security with the city of Sierra Madre Finance Department. The deposit may be in the form of a performance bond, surety bond, money order, letter of credit, certificate of deposit or restricted bank account.

Project Cost Performance Security Amount (% of Project Cost) $50,000 to $99,999 3.0%
Created: 2025-10-24 10:23:12 [EST]
(Supp. No. 39)

$100,000 to $249,000 2.5%
$250,000 to $499,999 2.0%
$500,000 to $999,999 1.5%
$1,000,000+ 1.0%
E. Upon completion of the project and determination by the WMP compliance official of the project's compliance, partial compliance or noncompliance with the waste management plan under Section

8.13.060(C), the WMP compliance official shall determine the amount of the refund of the performance security. The amount of the refund shall be determined based on the following formula. In no case shall the amount of the refund exceed the amount of the deposit.

Refund = Final Diversion Rate from Waste Management Plan Form Report × Performance Proposed Diversion Rate from Waste Management Plan = Security DF. No provision of this chapter shall prevent a licensed contractor having a permit for the demolition or reconstruction of a building, structure, pavement, of concrete installation from marketing any saleable items or construction and demolition waste salvaged from such demolition or reconstruction. No provision of this chapter shall prevent a licensed contractor from causing such waste or salvageable items or construction and demolition waste to be removed from the premises on which such waste or salvageable items are generated, pursuant to the provisions of the demolition or construction contract, provided that such collection, removal, and disposal activity shall only be by the licensed contractor having the contract for the demolition or construction work that generated such salvageable items or construction or demolition waste, or by regularly employed personnel carried on the licensed contractor's payroll records as an employee, utilizing bins or transportation equipment owned by the licensed contractor. (Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.050 Waste management plan fee and performance security.

A. Fees and deposits. Applicants for a covered project shall pay a C&D waste management plan review fee for administrative processing and provide a refundable deposit to ensure compliance with diversion requirements.

B. Fee and deposit amounts. The review fee shall be established by resolution of the city council. The required deposit shall be calculated as the lesser of three percent of the project valuation or ten thousand dollars.

C. Maximum deposit for multiple demolitions. Notwithstanding subsection B, where a project involves the demolition of multiple structures or facilities on a single property, the total required deposit for all demolition activities shall not exceed ten thousand dollars, regardless of project valuation or the number of structures.

D. Deposit refund. If the compliance official determines that a project complies with the applicable waste management plan requirements in accordance with Section 8.13.070, the security deposit shall be refunded.

If the compliance official determines that the project is noncompliant, the security deposit may be reduced or forfeited consistent with Section 8.13.080.

8.13.0650 Approval/Nonapproval Review of waste management plans.

A. Approval. No building or demolition permit shall be issued for any project valued at more than fifty thousand dollars unless the applicant has identified the franchisee as his/her hauler or until the WMP compliance official has approved the WMP or an exemption from the WMP requirement. Approval shall not be required, Created: 2025-10-24 10:23:12 [EST]
(Supp. No. 39)

however, where demolition is urgently required to protect public health or safety. The WMP compliance official shall only approve a WMP if he/she determines that the following conditions have been met:

1. The WMP provides all of the information required by Section 8.13.040(A) of this chapter;

2. The WMP indicates that at least sixty-five percent fifty percent of all C&D debris generated by the project will be diverted from disposal sites; and

3. The facility to be employed by C&D applicant to collect or receive the material has obtained a permit from the California Integrated Waste Management Board for the collection of construction and demolition debris pursuant to applicable state statutes.and a bond has been submitted pursuant to Section 8.13.040(D).

In approving a WMP pursuant to this section, the waste management plan compliance official may impose reasonable conditions.

B. Nonapproval. If the WMP compliance official determines that the WMP is incomplete or fails to indicate that at least sixty-five percent fifty percent of all estimated C&D material or debris generated by the project will be reused or recycled, he/she shall either:

1. Deny the permit and provide the C&D applicant a statement of reasons; or

2. Return the WMP to the C&D applicant requesting additional information (Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.0760 Compliance with waste management plan.

A. Documentation. Within thirty days after the completion of any project, the C&D applicant shall submit the WMP compliance report along with to the WMP compliance official documentation to demonstrate that it has met the diversion requirement for the project. This documentation shall include all of the following:

1. Receipts from the vendor or facility which collected or received each material, showing the actual weight or volume of that material;

2. A copy of the WMP for the project which contains the actual volumes or weights of each material diverted and not diverted from disposal sites;

3. Any additional information the C&D applicant believes is relevant to determining its efforts to comply in good faith with this chapter.

B. Weighing of Wastes. C&D applicants shall make reasonable efforts to ensure that all C&D debris diverted or not diverted from disposal sites is measured and recorded using the most accurate method of measurement available. To the extent practical, all C&D material or debris shall be weighed on scales which comply with all regulatory requirements for accuracy and maintenance. For C&D material or debris for which weighing is not practical due to small size or other considerations, the C&D applicant shall measure the volume of the waste and express that volume in terms of weight using the conversion rates approved by the city for this purpose.

C. Determination of Compliance. The WMP compliance official shall review the information submitted under subsection A of this section and determine whether the C&D applicant has complied with the diversion requirement, as follows:

1. Full Compliance. If the WMP compliance official determines that the C&D applicant has fully complied with the diversion requirement, he/she shall release any inspection holds and approve the finalization of demolition and construction permits for the project. release the performance security with respect to the project.

Created: 2025-10-24 10:23:12 [EST]
(Supp. No. 39)

2. Good Faith Effort to Comply. If the WMP compliance official determines that the diversion requirement has not been achieved for a project, he/she shall determine whether the C&D applicant has made a good faith effort to comply with this chapter. In making this determination, the WMP compliance official shall consider the availability of markets for the C&D material or debris not diverted from disposal sites, the size of the project, and the documented efforts of the C&D applicant to divert C&D material or debris. If the WMP compliance official determines that the C&D applicant has made a good faith effort to comply with this chapter, he/she shall release any inspection holds and approve the finalization of release the performance security demolition and construction permits with respect to the for the project.

3. Noncompliance. If the waste management plan WMP compliance official determines that the C&D applicant has not made a good faith effort to comply with this chapter, or if the C&D applicant fails to submit the documentation required by subsection A of this section within the required time period, the applicant shall be subject to an civil penalty pursuant to Section 8.13.080. then the C&D applicant shall be assessed a penalty in an amount equal to that portion of the performance security that would not have been refunded for failure to achieve a fifty percent diversion rate for the project, as described in Section 8.13.030(E). The waste management plan compliance official may collect such penalty from the C&D applicant or permittee and may also deny or withhold any related inspections for the project. or may deduct it from the bond posted by the C&D applicant or permittee.

D. Withholding Construction Permits for Noncompliance. The building official shall not issue a certificate of occupancy or a final inspection approval pursuant to the building code of the city for any project for which a C&D applicant is not in compliance with this chapter, unless the that noncompliance has been resolved by through payment collection of the applicable civil penalty.provided in this chapter. (Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.080 Civil penalties.

A. Penalties. Pursuant to Chapter 1.12.010(B) of the Sierra Madre Municipal Code, the WMP compliance official is authorized to impose civil fines and penalties upon any permittee, applicant, or other responsible person who violates any provision of this chapter or fails to comply with any applicable law.

B. Penalty amounts. Consistent with California Government Code Section 36901, civil fines, penalties, and forfeitures shall not exceed one thousand dollars per violation, per day.

C. Deposit forfeiture. In the event where a C&D applicant fails to comply with Section 8.13.070, the WMP compliance official is authorized to assess a civil penalty. Any such penalty may be deducted from the required security deposit or may result in the partial or complete forfeiture of the security deposit. For each day that a violation continues, including each day on which required documentation is not submitted, may be treated as a separate violation subject to separate penalties, up to the maximum amount authorized by law.

8.13.0970 Infeasibility exemption.

A. Application. If a C&D applicant experiences unique circumstances that he/she believes make it infeasible to comply with the diversion requirement, the C&D applicant may apply for an exemption at the time that he/she submits the WMP required under Section 8.13.030. The C&D applicant shall indicate the maximum diversion rate he/she believes is feasible for each material and the specific circumstances that he/she believes make it infeasible to comply with the diversion requirement.

B. Meeting with Waste Management Plan Compliance Official. The waste management plan compliance official shall review the information supplied by the C&D applicant and may meet with the C&D applicant to discuss Created: 2025-10-24 10:23:12 [EST]
(Supp. No. 39)

ways to meet the diversion requirement. Based on the information supplied by the C&D applicant, the waste management plan compliance official shall determine whether it is possible for the C&D applicant to meet the diversion requirement.

C. Granting of Exemption. If the waste management plan compliance official determines that it is infeasible for the C&D applicant to meet the diversion requirement due to unique circumstances, he/she shall determine the maximum feasible diversion rate for each material and shall indicate this rate on the WMP. All of the following findings must be made prior to the approval of an exception:

1. There are exceptional or extraordinary circumstances or conditions applicable to the project that do not apply generally to similar projects; and

2. Granting the exception will not constitute a grant of special privilege inconsistent with limitations imposed on like projects.
(Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.1080 Appeal.

An applicant may appeal a decision of the waste management plan compliance official to deny, approve, or conditionally approve a waste management plan, to determine compliance or noncompliance with a waste management plan, or to determine eligibility for an infeasibility exemption by filing a notice of appeal with the office of the city manager no later than six calendar days following the issuance of the waste management plan compliance official's decision. The notice of appeal shall be in a form prescribed by the waste management plan compliance official, shall contain a statement of the reasons why the appellant believes the waste management plan compliance official's decision does not comply with this chapter, and shall set forth the relief requested. The appeal shall be heard and decided by the city manager within thirty calendar days following the filing of the notice of appeal, unless continued by the city manager for good cause. The city manager shall notify the appellant in writing of his/her decision within three business days of that decision. (Ord. 1213 § 2 (Exh. 2 (part)), 2004)

8.13.090 Severance.

A. If any provision, section, paragraph, sentence or word of this chapter, or the application thereof to any person or circumstance, is rendered or declared invalid by any court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this chapter, and the application of such to other persons or circumstances, shall not be affected thereby and shall remain in full force and effect.

B. Environmental Review. This code amendment is categorically exempt pursuant to Section 15308 (Class 8) of the California Environmental Quality Act. A notice of exemption has been prepared and certified, and is adopted.
(Ord. 1213 § 2 (Exh. 2 (part)), 2004)

CITY OF
SIERRA
MADRE

STAFF REPORT

PLANNING & COMMUNITY PRESERVATION
DATE: August 25, 2026
TO: Honorable Mayor and City Council
FROM: Clare Lin, Director of Planning & Community Preservation By: Clare Lin, Director of Planning & Community Preservation SUBJECT:

Report, Discussion and Direction Regarding the Sierra Madre Multimodal Transportation and Circulation Plan Update

RECOMMENDATION
It is recommended that the City Council receive and file this report, discuss the status of the Sierra Madre Multimodal Transportation and Circulation Plan Update, and provide direction to staff to prepare and submit a new application during the next Caltrans Sustainable Transportation Planning Grant funding cycle anticipated to open in August 2026.

SUMMARY
On November 21, 2025, the City submitted an application for the Caltrans FY 2026–27 Sustainable Transportation Planning Grant for the Sierra Madre Multimodal Transportation and Circulation Plan Update, a collaborative effort involving the Planning Department, Public Works Department, and California Consulting. The proposed project was intended to update the City’s transportation planning framework through a comprehensive multimodal approach focused on circulation, safety, pedestrian and bicycle connectivity, ADA accessibility, and mobility for users of all ages and abilities.

The City has since been notified that the application was not selected for funding in this cycle. Caltrans encouraged the City to meet with District 7 staff to obtain feedback on the application and identify ways to improve competitiveness for future funding rounds, and staff is recommending that the City continue pursuing this grant opportunity through resubmittal.

DISCUSSION & ANALYSIS
Sierra Madre’s circulation system is constrained by a limited network of surface streets that must serve both local property access and the movement of people and goods into and out of the City. Although Sierra Madre does not contain regional transportation facilities within its boundaries, the community relies on nearby access to Interstate 210, regional transit connections, and surrounding jurisdictions for broader mobility, which creates pressure on local streets, intersections, and first- and last-mile connectivity.

Existing transportation challenges include gaps in the pedestrian and bicycle network, accessibility barriers, constrained street connections, and the need to improve safety and mobility for pedestrians, bicyclists, motorists, trucks, seniors, youth, and persons with disabilities. The proposed project is intended to address these deficiencies by identifying policy updates, infrastructure priorities, and funding strategies to improve sidewalk networks, bicycle facilities, bike parking, crossings, and accessible connections to regional destinations.

On July 23, Planning and Public Works staff met with transportation planners from Caltrans District 7 for a debrief regarding the City’s FY 2026–27 Sustainable Transportation Planning Grant application. Based on this review, Caltrans staff recommended several technical refinements, including narrowing the scope of future applications, expanding the use of maps and other visuals, and providing more robust data and documentation to demonstrate the need for the proposed project and an updated Circulation Element. Caltrans staff expressed optimism that a revised application incorporating these suggestions would be more competitive, and both Planning and Public Works staff gained valuable insight to include in the City’s resubmittal in the upcoming funding cycle.

Caltrans’ notice that the project was not selected does not preclude future success; rather, it provides the City an opportunity to refine the proposal in consultation with District 7 staff. Staff has identified two possible paths forward:
(1) revise and resubmit the Caltrans grant application in the next funding cycle, or (2) issue a Request for Proposals to retain a consultant to update the Circulation Element, including consideration of AB 98 and other evolving transportation planning requirements; however, staff believes the most cost-effective immediate approach is to pursue grant resubmittal first.

Because the estimated project cost is $265,010, grant funding would provide a significant opportunity to advance a citywide planning effort that may otherwise be difficult to fund with local resources alone. Reapplying would allow the City to incorporate Caltrans’ feedback, strengthen project partnerships, refine scope and deliverables, and continue seeking outside funding for transportation, safety, and mobility improvements that support long-term community objectives.

If the City is unsuccessful in securing grant funding during the next application cycle, staff would return to the City Council with options for moving the work forward through a locally funded effort. Such action would require City Council consideration of an additional appropriation in a future fiscal year, either to prepare the Comprehensive Multimodal Transportation and Circulation Plan or to proceed with a Circulation Element update, potentially in coordination with the Housing Element update anticipated in FY 2028.

STRATEGIC PLAN RELATIONSHIP
Strategic Objective: Promote an unparalleled quality of life with an engaged and collaborative culture. • Goal 2. Improve Communication and Collaboration
• Goal 3. Provide Education on Critical Civic Issues
Strategic Objective: Be a regional leader in sound stewardship of water, power, and natural resources. • Goal 2. Encourage Greenhouse Gas Reduction Steps

ENVIRONMENTAL ANALYSIS
Not a CEQA Project under: 14 CCR 15378(b)(4)- government fiscal activities

FISCAL IMPACT
There is no fiscal impact as a result of the recommended action. Should the City Council elect to proceed with the Multimodal Transportation and Circulation Plan Update prior without a grant award, a supplemental appropriation from the General Fund would be required.

Approved by:
___________________________
Michael Bruckner
City Manager

CITY OF
SIERRA
MADRE

STAFF REPORT

CITY MANAGER'S OFFICE
DATE: August 25, 2026
TO: Honorable Mayor and City Council
FROM: Miguel Hernandez, Assistant City Manager
By: Sophia Conchas, Administrative Analyst
SUBJECT: Creation of an Ad Hoc Committee to Assist with the Design of a Community Survey

RECOMMENDATION
It is recommended that the City Council:

1. Establish a City Council Ad Hoc Committee to assist staff with the devlopment of a community survey; and

2. Appoint two members of the City Council to serve on the Ad Hoc Committee.

SUMMARY
The City is preparing to conduct a professionally designed community survey, in partnership with On-Pointe Insights, a professional public opinion research firm to better understand resident priorities, services expectations, and public sentiment on key issues affecting Sierra Madre. The survey is intended to provide the City Council and staff with reliable community feedback to inform future policy discussions, budget and infrastructure planning, community outreach efforts, and potential long-term funding startegies before major decisions are considered.

The pupose of the survey is to provide the City Council and staff with community feedback to help inform future policy discussions, budget priorities, infrastructure planning, community outreach, and potential long-term funding strategies. A well-designed survey will help ensure that the City receives meaningful and reliable information from residents before major policy or financial decisions are considered.

Since survey design is critical to the usefulness of the results, staff recommends that the City Council establish a two‑member Ad Hoc Committee to work with staff and On‑Pointe Insights on the development of the survey instrument. The Ad Hoc Committee would provide advisory input on priority issue areas, question framing, and overall survey structure to help ensure the survey captures issues most relevant to residents.

DISCUSSION & ANALYSIS
Staff recommends the creation of a two‑member City Council Ad Hoc Committee to work with staff and On‑Pointe Insights on the design of the community survey. The Ad Hoc Committee would provide targeted input on priority issue areas, question framing, and overall survey structure so that the survey instrument is clear, balanced, and aligned with the purpose of the survey. This collaborative approach will help ensure that the survey produces reliable, actionable data that can meaningfully inform future policy discussions, budget priorities, and long-term planning efforts.

The role of the Ad Hoc Committee would be advisory in nature. The committee would not make final policy decisions or take action on behalf of the City Council; instead, it would assist staff in developing a survey that captures issues most relevant to the community. By focusing on survey content and structure rather than policy outcomes, the committee can help improve the quality and usefulness of resident feedback while maintaining the City Council’s decision-making authority.

Key topic areas for the survey may include, but are not limited to: resident satisfaction with City services; public safety and emergency preparedness; street, sidewalk, facility, and infrastructure maintenance; water and sewer system priorities; parks and recreation, library, and community services; fiscal sustainability and budget priorities; community communication and public trust; and potential future funding options. These topic areas are intended to provide the City Council with a broad yet focused snapshot of community priorities and service expectations, and to identify where additional investment, communication, or policy attention may be warranted.

The Ad Hoc Committee would meet as needed with staff and On‑Pointe Insights during the survey development process, providing feedback on draft questions, sequencing, and survey format. Once the survey design phase is complete, the Ad Hoc Committee's work would conclude, unless otherwise directed by the City Council. Creation of an ad hoc committee is appropriate because the committee would be temporary, limited in scope, and composed of less than a quorum of the City Council, and it would dissolve upon completion of its specific task of assisting with survey design.

Following completion of the survey and analysis of responses, On‑Pointe Insights will prepare the survey results for presentation to the City Council at a future public meeting. This presentation will allow the City Council and the community to review key findings and discuss how the results should guide future policy decisions, budget allocations, and community engagement startegies.

STRATEGIC PLAN RELATIONSHIP
This item supports the City's commitment to community engagement, transparency, and informed-decision making by facilitating resident input to help guide future policy and budget priorities.

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 creating the Ad Hoc Committee. The cost of the community survey is inlcuded in the City Mangaers Office FY 2027 operating budget. Any additional costs or future work beyond the current survey scope would be brought back to the City Council for separate consideration, if necessary.

Approved by:
___________________________
Michael Bruckner
City Manager

CITY OF
SIERRA
MADRE

STAFF REPORT

FINANCE
DATE: August 25, 2026
TO: Honorable Mayor and City Council
FROM: Miguel Hernandez, Assistant City Manager
By: Sophia Conchas, Administrative Analyst
SUBJECT:

Report, Discussion, and Direction Regarding the Application of the City's Utility Users Tax (UUT) to Online Streaming Services

RECOMMENDATION
It is recommended that the City Council provide direction regarding the potential application of the City's Utility Users Tax (UUT) to online streaming services.

SUMMARY
The City of Sierra Madre administers a voter-approved ten percent (10%) Utility Users Tax (UUT) on communication services pursuant to Chapter 3.36.040 of the Sierra Madre Municipal Code.

During the June 9, 2026, City Council meeting, the City Council directed staff to gather information regarding the potential application of the City's Utility Users Tax to streaming services, including subscription-based video streaming platforms such as Netflix, Hulu and Disney+, among others.

The request follows recent litigation involving Disney Platform Distribution, Inc. v. City of Santa Barbara, which addressed whether certain streaming services may be subject to a locally adopted Utility Users Tax under municipal code provisions. This report provides an overview of the City's existing ordinance, relevant legal considerations, potential fiscal impacts, and implementation considerations associated with the taxation of streaming services.

DISCUSSION & ANALYSIS
The City of Sierra Madre administers a voter-approved Utility Users Tax (UUT) on communication services pursuant to Chapter 3.36.040(A) of the Sierra Madre Municipal Code (SMMC), which states: “There is hereby imposed a tax upon every person with a billing address or service address in the City who uses communication services. SMMC 3.36.020(5) defines “communication services” to mean “telecommunication services and video services.” SMMC 3.36.020(16) defines “video services” to mean “any and all services related to the supply of video programing … to the extent that the service user is subject to an additional direct or indirect charge for programming or communications over the leased channel and ancillary video services, including any service that is associated with or incidental to the provision or delivery of video services ….” Per SMMC 3.36.040(B), “communication services shall include all communication service for which there is a charge, regardless of the means or technology used to provide such services.” SMMC 3.36.040(D) lists the types of communication services that the UUT does not apply to, and the list does not include video streaming services.

In January 2026, the California Court of Appeal published its decision in Disney Platform Distribution, Inc. v. City of Santa Barbara (2026) 118 Cal.App.5th 238 (Disney Platform). In Disney Platform, three video streaming services challenged the City of Santa Barbara’s application of its 5.75 percent UUT to their services. The video streaming services argued:

1. The Santa Barbara UUT Ordinance doesn’t apply to video streaming; and

2. Even if it did, it is unlawful because it is discriminatory under the Internet Tax Freedom Act; and

3. It violates the U.S. Constitution’s First Amendment’s protection for freedom of speech; and

4. It violates the Proposition 218’s prohibition against changing a taxing methodology without a vote of the electorate; and

5. It violates the noticing requirements under Public Utilities Code Section 799.

The Court of Appeal sided with the City of Santa Barbara, holding:

1. The UUT applied to video programming provided by video service suppliers, regardless of the technology used to deliver, store, or provide such services;

2. There is no violation of the Internet Tax Freedom Act because streaming video services are not taxed in a discriminatory way;

3. There is no violation of the First Amendment because the tax is not a content-based regulation of speech;

4. The tax does not constitute a change in the methodology because the math behind the tax remains the same; and
Notice is not required under Public Utilities Code Section 799 because there was no substantive change to the tax.

Sierra Madre’s UUT Ordinance is very similar to Santa Barbara’s.

Both ordinances were adopted in 2008.

Sierra Madre’s ordinance applies to video services, whereas Santa Barbara’s ordinance applies to video programming.

Sierra Madre’s ordinance applies the tax “regardless of the means or technology used to provide such services”, while Santa Barbara’s ordinance applies the tax “regardless of the technology used to deliver, store or provide such services.”
Both ordinances require a video service supplier to collect the tax.

Both ordinances made clear that the UUT would not apply to charges for internet services, including digital downloads like music, games, and ringtones, but they never excepted video streaming services.

The attorneys for Disney made the City aware of a recent decision in Los Angeles Superior Court - Hulu, LLC v.

City of Glendale (LACSC Case No. 25NNCP00413). In that case, the Superior Court determined that Glendale's UUT ordinance did not apply to the streaming services because the impartial analysis the voters relied on to adopt the UUT made no mention of video services and Hulu was free and the only streaming service available, so there was no way for voters to anticipate the extension of the UUT to streaming services. First, the superior court's decision here does not bind subsequent UUT cases. Second, Sierra Madre's UUT ordinance is more similar to Santa Barbara's than Glendale's in its overt references to video services, "regardless of the means or technology used to provide such services."
If the City Council desires to impose the UUT on video streaming services, the City Council should direct the City’s tax administrator (City Manager) to issue an administrative ruling with the assistance of the City Attorney. SMMC

3.36.040(E) states, “The tax administrator shall, from time to time, survey the video service supplies in the city to identify the various components of the video services that are being offered to customers within the city, and the charges therefor. The tax administrator may, thereafter, issue and disseminate to such video service suppliers an administrative ruling identifying those components: i) that are necessary or common to the receipt, use and enjoyment of video services; … Charges for such components shall be subject to the tax of subsection (A), above.” Should the City Council direct staff to pursue implementation of the Utility Users Tax on qualifying streaming services, implementation would require coordination among service providers, legal counsel, Finance staff, and any third-party consultants assisting with compliance and collection. The City contacted Santa Barbara and was informed that Neumo (formerly Avenu) is the consultant supporting the City with their collection efforts. Neumo has provided the City with a proposed scope of work (Attachement 1) to assist with the collection. Neumo charges a fixed fee equal to 0.10% of total UUT revenues, estimated at approximately $3,597.90 based on FY 2026-27 projected revenues. For example, assuming the City generates an additional $500,000 in UUT revenue from qualifying streming services, the Neumo service fee would increase by approximately $500, for a total estimated annual fee of $4,097.90. Finance staff is also soliciting proposals from other potential firms.

STRATEGIC PLAN RELATIONSHIP
This item supports the City’s commitment to fiscal sustainability through evaluation of existing revenue sources and funding opportunities.

ENVIRONMENTAL ANALYSIS
Not a CEQA Project under: 14 CCR 15378(b)(4)- government fiscal activities

FISCAL IMPACT
Fiscal impacts are currently unknown and are being evaluated as part of this review. Given the pervasive nature of streaming services, staff anticipates that enforcing the City's UUT ordinance consistent with voter authorization may generate hundreds of thousands of dollars in additional revenue.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
Attachment 1 – Neumo UUT Tax Administration Proposal.pdf Attachment 2 - Sierra Madre Municipal Code Chapter 3.36 – Utility Users Tax.pdf UUT Tax
Administration
PRESENTED BY:

Erica Warne
Neumo Headquarters
5860 Trinity Parkway, Suite 120
Centreville, VA 20120
E: [email protected]
P A G E 2
About Neumo
Neumo partners with governments to modernize the way public services are delivered. Serving more than 4,500 city, county, state, and federal organizations across North America, we help agencies streamline operations, improve efficiency, and better serve their communities.

Our unified, cloud-based platform brings together solutions for courts, DMV operations, revenue and compliance, public administration, and payments within a single, integrated environment. By reducing system fragmentation, this approach strengthens
visibility and control, enables
data-driven decision-making,
and supports agencies as their
operational needs evolve.

Neumo delivers end-to-end
solutions that support revenue management, compliance, and digital service delivery, including online filing, payments, licensing, records access, and more.

Built-in analytics and reporting tools provide actionable operational insight, helping jurisdictions reduce administrative burden, improve compliance outcomes, and meet the growing demand for self-service and digital engagement.

Headquartered in Centreville, Virginia, Neumo is committed to long-term public sector partnerships, delivering secure, reliable, and modern technology that governments can depend on. Founded on the principle of strengthening the connection between government agencies and the people they serve, we bring more than 100 years of combined experience and manage core operational systems that process millions of transactions annually.

For seven consecutive years, Neumo has been recognized as a GovTech 100 company, an acknowledgment reserved for organizations making a meaningful impact on state and local governments and a reflection of our long-standing commitment to the public sector.

Serving Governments That Transform Communities

QUALIFICATIONS
• Unified, cloud-based
GovTech platform
• Purpose-built for
government operations
• Millions of transactions
processed annually
• Deep experience across
core government functions
• Trusted long-term partner
to government agencies
P A G E 3
Neumo Tax Administration Solution
For jurisdictions like yours that already rely on Neumo for UUT and Communications Users Tax (CUT) compliance auditing, the next logical step is bringing the full administrative cycle under the same platform. Neumo’s cloud-based tax administration solution handles registration, filing, payment processing, compliance monitoring, and taxpayer outreach on the City’s behalf - reducing staff burden and ensuring that voter-approved utility tax revenue is collected consistently and completely.

Every engagement is configured to fit the jurisdiction - not the other way around. For your city, that means profiled specifically for UUT and CUT administration: ordinance requirements, applicable utility categories, exemption structures, and reporting obligations are all built in from the start. As utility service models continue to evolve, from traditional telecom to streaming and connectivity services, the platform adapts accordingly, ensuring the City’s tax framework keeps pace.

Since the platform is already operational and needs only to be profiled and loaded with your tax and license data, the transition is fast and uninterrupted. Current collections continue without disruption while the new program comes online.

Three things are required from your city to get started: (1) existing taxpayer data, (2) authorization to accept filings, payments, and compliance actions on the jurisdiction's behalf, and (3) a designated contact to receive reports through the online Customer Reporting Portal. That's all, Neumo handles the rest.

N E U M O ’ S F U L L A D M I N I S T R A T I V E C Y C L E From provider registration to annual renewal, Neumo handles the full UUT and CUT administrative cycle for your city - replacing manual, paper-based workflows with a secure, cloud-based process that reduces staff burden and gives the City consistent visibility into utility tax revenue.
• Onboarding & Configuration: Forms, reports, and secure web access are established using existing taxpayer data with no disruption to current operations.
• Taxpayer Registration: Taxpayer accounts are created and maintained from jurisdiction records, with a seamless handoff from initial registration through renewals and ongoing filings. • Taxpayer Outreach & Notification: Forms, filing instructions, and automated reminders are delivered by mail and online, keeping businesses informed and reducing late or missed filings. • Payment Processing & Reconciliation: Filings and payments are received, posted, and reconciled with timely fund disbursement and a clear audit trail throughout.
• Compliance Monitoring: Filings are verified for accuracy, late fees and penalties are applied automatically, and underpayments are flagged and routed to the appropriate compliance workflow. • Taxpayer Support: Business owners have access to a designated support team, online filing options, and selfservice resources, reducing inbound calls to jurisdiction staff. Support is available during extended hours (7:30 AM to 5:30 PM, M-F), with 24/7 voicemail and online access for after-hours requests. • Reporting & Oversight Portal: Jurisdiction administrators have real-time access to a secure online portal with payment listings, reconciliation reports, delinquency summaries, and on-demand exports in Excel, PDF, and CSV formats.

P A G E 4
• Government Service Center Portal: A permission-based, self-service hub available 24/7, giving your city staff unlimited access to account management tools, real-time reporting, and program documentation with no additional user license fees.

Supporting Business Growth
Effective UUT and CUT administration is more than a compliance function, it’s how voter-approved revenue is protected over time. Neumo works alongside your city to reduce the reporting burden on utility providers while ensuring that all applicable revenue streams are captured, including charges tied to evolving service models such as streaming, bundled connectivity, and equipment fees.

Provider outreach and onboarding support include filing instructions, automated reminders, and a structured communication process that guides utility providers through registration, tax classification, and any ordinance-specific requirements, all tracked through the Government Services Portal. Where the existing audit relationship has already established contact with key providers, that foundation carries directly into the ongoing administration program.

Onboarding Communication
At program launch, a targeted communication campaign is deployed to your city’s full utility provider registry. An introductory packet developed in collaboration with the City alerts providers to the new online filing option, key filing dates, and support contacts. For providers already familiar with Neumo through the City’s audit program, the transition to administered filing is a natural extension of an existing relationship.

P A G E 5

O N G O I N G A D M I N I S T R A T I O N C Y C L E
Once the program goes live, Neumo manages the full
recurring UUT and CUT administration cycle on your
city’s behalf. Filings and payments from utility
providers are accepted by mail and online, with paper
submissions opened, batched, and reconciled. Web
filings are reconciled daily. NSF check processing,
returns, and refunds are handled as part of the
standard service.

Funds are deposited and disbursed to your city's
designated accounts, typically 10–15 times per
month, or at a frequency mutually agreed upon.

Invoices for underpayments or late payments are
generated and sent automatically.

Missed filings are flagged monthly. Providers receive
a courtesy call and written notice, with follow-up
continuing until the account is current or your city
directs alternate collection action. Neumo Tax
Specialists also monitor monthly receipts and flag
significant variances - an especially valuable function as utility billing structures evolve and new service categories emerge that may affect taxable gross receipts.

New taxpayer registration, ongoing support via phone and email, and assistance with filing, payment, and account changes are all included to support with what they need to stay compliant from day one.

R E P O R T I N G A N D D E L I V E R A B L E S
Throughout the program, your city’s management and staff have full visibility into program activity through Neumo's cloud-based Government Services Portal - a self-service, permission-based system available 24/7 with unlimited user access at no additional cost.

Authorized staff can accept and process payments, issue business licenses, set up taxpayer accounts, manage delinquencies, scan and upload documents, and search accounts across multiple data points. All reports are exportable in Excel, Word, PDF, and CSV formats.

Available reports include:
• New Account Listing
• Dashboard Report
• Transfer and Distribution Report
• Daily, Weekly, and Monthly Reconciliation
Reports
• Detailed Payment History Reports
• History and Trends
• Top Remitters Reports
• Delinquency Reports
• Business License Detail and Summary Reporting
P A G E 6

A C C O U N T M A I N T E N A N C E A N D R E P O R T I N G The Government Services Portal gives your city staff the tools to manage taxpayer accounts and program activity in real time, without routing requests through Neumo. All features are permission-based, ensuring staff access is appropriate to their role.

Account management capabilities include
searching and setting up taxpayer accounts across
multiple data points, creating and editing tax
liabilities, uploading documents and municipallevel files, entering and reviewing account notes (including notes entered by Neumo staff), and
posting in-house payments from walk-ins, field
visits, or direct mail, with automatic fee
calculations, penalty and interest, and override
flexibility for underpayments and overpayments.

Payment posting covers both tax and fee types
(sales, use, occupational withholding, alcohol
taxes, and more) as well as business license and
certificate-based fees, with separate reconciliation
processes for each. All payment posting features
are included in the service at no additional cost.

Finance Reporting
The portal's finance reporting suite gives your city a complete, real-time picture of program revenue. Key reports include:
• Reconciliation Detail & Summary: Daily breakdown of all taxes received and disbursed by tax type, beneficiary, and net funds
• Pending Payments: Payments posted but not yet disbursed, providing a full revenue picture beyond reconciled transactions alone
• Detailed Payment Listing: Comprehensive taxpayer-level view of all remittances within a selected date range, filterable by tax type
• Business License Detail & Summary: Daily and date-range license activity, filterable by issued, not issued, or both
• History and Trends: Month-over-month and year-over-year revenue comparisons by tax type and rate code • Net Revenue Comparison: Snapshot of revenue against prior periods, filterable by date range and tax type • Top Remitters: Listings of top 5-100 remitters, increases, and decreases, with year-over-year variance and NAICS breakdowns
• New Taxpayers Report: Full listing of new registrants within a date range, including contact and transaction details
• Dashboard: Graphical revenue summary by date range, including net tax due history, tax source breakdown, and top taxpayer activity
P A G E 7
System Support & Maintenance

TECHNICAL SUPPORT
Everyone who interacts with the Neumo solution has access to our best-in-class support services should they encounter an issue or need assistance with the system. We consistently deliver exceptional support experiences, while removing barriers to our customers’ success.

Continuous Support
As part of your subscription, you gain access to our application support resources.

Below is a description of three separate support resources available to you. • Customer Success Manager (CSM): Your Customer Success Manager is assigned to help ensure you are achieving software optimization, are connected to product enhancements, and are aware of our newest offerings. Their goal is to help you meet your objectives utilizing our software. • Client Technical Support (CTS) Team: Unlike other organizations, Neumo does not put your users through a round-robin call center. Your Client Technical Support team is your primary support to assist you with system and technical concerns. You will always have direct access to call or email the CTS team for the life of your subscription. • Support Team: Our Support Team provides system and website support to users within your jurisdiction. Our Support Team is a separate team within our support division that specializes in understanding system functionality and can be a resource for users as needed regarding website or system functionality. Users can call/email this team during business hours for the life of your subscription.

Neumo’s multi-prong support approach is unique to the industry and a key reason customers stay with Neumo. Our proven support practices have allowed us to maintain our high customer satisfaction and retention levels across all Neumo product lines.

What’s Included:

Support is defined as any questions surrounding how to use a feature within the platform, as well as troubleshooting.

Support for Your
Onboarding
We know that starting off
“on the right foot” is critical.

Support for Your
Ongoing Success
We are with you every step of
the way.

Support for
Your Business
When your local businesses
need help using the tool, we’re
there for them too.

P A G E 8
Deployment Methodology and Approach
Neumo has built a customer-centric deployment methodology that revolves around creating a successful customer experience and help you achieve your business goal and time to value. We have established the Neumo Deployment Strategy (DS), a proven innovative and collaborative framework which allows us to partner with our customers. This methodology allows our customers to quickly make decisions based on our out-of-the-box configurations, learn how our best practices will change and improve workflows, and identify any additional features or functionality required to make you successful. Neumo DS also focuses on making sure all stakeholders are involved in identifying requirements and risks to accelerate the decision-making process. The DS framework keeps your project on schedule by involving your stakeholders early and resolving requirements before they become delays.

The four key pillars to our methodology are:

Partnership
Partnering with you to understand and document your
current processes and desired business outcomes.

Industry Experience
Our Implementation team has worked with municipalities
across the country and understands best practices to
guide you through Implementation journey.

Interactive System Validation
A process by which your team works side-by-side with
our Implementation team, wherein you can see, use,
and approve work as it is being completed. Helping to
eliminate last-minute changes that can delay an on-time Go-Live in your new system.

Success Driven Rollout
Extensive persona-based User Acceptance Testing and
Multi-Phased System training, helping ensure you and
your team will become successful users of Neumo and
help drive value and adoption.

The Project Team will develop a plan to align with your city by gaining knowledge of your goals, objectives, community and organizational culture, and needs through the implementation Discovery Phase and configure your system so it is functional on Day 1. Our team of professionals will provide the service, training, and support your staff requires to be successful.

We pride ourselves in providing our customers with a service and support model that is unique to the marketplace. Our model empowers our associates to make decisions and advocate for your goals, making it quicker and easier for you to get the answers you need, when you need them.

A Neumo executive will serve as your city's executive sponsor and escalation point throughout implementation. The executive may attend meetings to make sure the project is progressing in line with your expectations.

P A G E 9
Training Methodology
Neumo believes that a customer-centered and success-driven approach to training is vital to a successful implementation. We have developed a Multi-Step and Multi-Phased approach based on two main needs for training. • System Oriented Training: Used during Discovery and Configuration Phases to give you and your Subject Matter Experts the information needed to help you understand the system and validate the work being completed.
• Persona Based Training: Training based around the needs of the users where a user can learn and understand the system based on their day-to-day responsibilities.

TRAINING STEPS AND PHASES
• Initial Training: System Orientation training is completed at the beginning of the project to orient your team to the system.
• Working Sessions: As part of the Configuration/Validation phase working sessions are used to allow you and the team to use the system and validate the configurations being built. • Use Case Focused Training: Persona-based training designed to train your staff on how to perform their functions in the system. (These will be recorded and provided back to you.) • Post Go-Live Training Office Hours: Training delivered after system Go-Live designed to give your team the ability to ask relevant questions once they have been in the live system performing their day-to-day functions.

TRAINING GUIDES AND MATERIALS
Neumo will provide:
• Use Case Specific Exercise Guides for your staff to practice with between training and Go-Live. • Customer-Specific Training Material based on the system as it is configured for you.

Estimated Timeline
We understand that each project schedule and customer is unique with specific needs when implementing a new program. We will work with you and your team to develop a timeline and process that works for all parties involved in the project. As such your timeline may vary based on the final scope determination, your project team availability, contract signing, or other unexpected delays.

Our Proven and Successful Implementation is Divided into Six Main Phases Upon receipt of the initial requirements, Neumo will assign a project team (including a Project Manager, Configuration Specialist, Trainer, and Data Conversion Specialist) then implementation will officially begin.

P A G E 10
Serving Governments That Transform Communities
Neumo is setting a new standard in government modernization, Serving more than 4,500 city, county, state, and federal organizations across North America. Delivering cuttingedge, cloud-based solutions, Neumo empowers governments to modernize operations, drive efficiency, and elevate the quality of services they provide to their communities.

With a comprehensive suite of products, Neumo offers innovative solutions spanning judicial, DMV, revenue compliance, public administration, and payments, seamlessly integrated on a unified cloud platform. Neumo is committed to transforming how governments serve and connect with their communities.
© Neumo Group, LLC. All rights reserved.

A.

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5. 6.

7. 3.36.040 - Communication users' tax.

There is hereby imposed a tax upon every person with a billing address or service address in the city who uses communication services, including intrastate, interstate (including calls to the District of Columbia), and international communications services, to the extent permitted by state and federal law. The tax imposed by this section shall be at the rate as established in Section

3.36.180 on the charges made for communication services and shall be collected from the service user by the service supplier or its billing agent. To the extent allowed by law, the tax on communication services shall apply to a service user if the billing address or service address of the service user is within the city's boundaries.

Except as otherwise provided herein, communication services shall include all communication service for which there is a charge, regardless of the means or technology used to provide such services. The tax imposed under subsection (A), above shall not be imposed upon any person for using the following communications services:

Except with respect to local telephone service, services used in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the public press or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar to that of the public press or by means of radio broadcasting, if the charge for such service is billed in writing to such person.

Services furnished to a public international organization in which the United States participates pursuant to treaty or Act of Congress, or to the American National Red Cross.

Any toll telephone service which originates within a combat zone and is from a member of the Armed Forces of the United States performing service in such combat zone; provided a certificate, setting forth such facts as the Secretary of the United States Treasury may by regulations prescribe, is furnished to the person receiving such payment.

No tax shall be imposed under this section on the amount paid for any communications services to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or network in the conduct of its business.

The installation of any instrument, wire, pole, switchboard, apparatus or equipment as is properly attributable to such installation.

Amounts paid by a nonprofit hospital for services furnished to such organization. For purposes of this exemption, the term "nonprofit hospital" means a hospital referred to in Section 170(b)(1)(A)(iii) of the Internal Revenue Code, which is exempt from federal income tax under Section 501(a) of the Internal Revenue Code.

Services or facilities furnished to the government of any state, or any political subdivision thereof.
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8. 9.

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Services or facilities paid for by a nonprofit educational organization and furnished to such organization. For purposes of this subsection, the term "nonprofit educational organization" means an educational organization described in Section 170(b)(1)(A)(ii) of the Internal Revenue Code, which is exempt from income tax under Section 501(a) of the same code. The term also includes a school operated as an activity of an organization described in Section 501(c)(3) of the Internal Revenue Code, which is exempt from income tax under Section 501(a) of the same code, if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

Items otherwise taxed. Only one payment of tax under this section shall be required with respect to the tax on any service.

As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the communication services.

Charges for video services that are taxable under this section include, but are not limited to, charges for the following:

Franchise fees and access fees (PEG), whether designated on the customer's bill or not; Initial installation of equipment necessary for provision and receipt of video services; All programming services (e.g., basic services, premium services, audio services, video games, pay-per-view services, and electronic program guide services); Equipment leases (e.g., converters, remote devices);
Service calls, service protection plans, name changes, changes of service, and special services (e.g., no promotional mail); and
The leasing of channel access (e.g., home shopping) to the extent that the service user is subject to an additional direct or indirect charge for programming or communications over the leased channel; provided that, in the absence of evidence of direct payment by the service user, the indirect payment of the service user(s), which is subject to the tax imposed under this section, shall be deemed to be the lease payment to the video service supplier by the party leasing the channel access.

The tax administrator shall, from time to time, survey the video service suppliers in the city to identify the various components of the video services that are being offered to customers within the city, and the charges therefor. The tax administrator may, thereafter, issue and disseminate to such video service suppliers an administrative ruling identifying those components: i) that are necessary or common to the receipt, use and enjoyment of video services; or, ii) which currently are, or historically have been, included in a bundled rate for video services by a local distribution company. Charges for such components shall be subject to the tax of subsection (A), above. 6/2/26, 4:26 PM Sierra Madre, CA Code of Ordinances
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To prevent actual multi-jurisdictional taxation of communication services subject to tax under this section, any service user, upon proof to the tax administrator that the service user owed and has previously paid the same tax in another state or city on such communication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the city under this section.

For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of the imposition, collection and/or remittance of the tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any communication services used by a person with a service address in the city, shall be subject to a rebuttable presumption that "substantial nexus/minimum contacts" exists for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this chapter.

For communication services for which there is no billing address or primary physical location for the provision of services, the service address shall mean the point of sale of the services.

The tax on communication services imposed by this section shall be collected from the service user by the service supplier. In the case of video services, the service user shall be deemed to be the purchaser of the bulk video services (e.g., an apartment owner), unless such services are resold to individual users, in which case the service user shall be the ultimate purchaser of the video services. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the twentieth day of the following month. If a service supplier of communication services uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall: i) provide to the tax administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax to the city; and, ii) upon request of the tax administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the tax administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the city.

The tax administrator may, from time to time, issue and disseminate to service suppliers, which are subject to the tax collection requirements of this section, an administrative ruling identifying those communication services that are subject to the tax of subsection (A), above. This administrative ruling shall be consistent with legal nexus rules, regulations, and laws pertaining to communication services. To the extent that the tax administrator determines that the tax imposed under this section shall not be collected in full for any period of time, such a determination falls within the tax administrator's discretion to settle disputes. The tax administrator's exercise of prosecutorial forbearance under this section does not constitute a 6/2/26, 4:26 PM Sierra Madre, CA Code of Ordinances
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change in taxing methodology for purposes of Government Code Section 53750, and the city does not waive or abrogate its ability to impose the tax on communications services in full as a result of issuing such administrative rulings.
(Ord. No. 1275, § 1, 4-8-08)
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CITY OF
SIERRA
MADRE

STAFF REPORT

CITY MANAGER'S OFFICE
DATE: August 25, 2026
TO: Honorable Mayor and City Council
FROM: Michael Bruckner, City Manager
By: Miguel Hernandez, Assistant City Manager
SUBJECT: Report, Discussion, and Direction Regarding a Future Agenda Item Request Policy

RECOMMENDATION
It is recommended that the City Council review and discuss the proposed Future Agenda Item Request Policy and provide direction.

SUMMARY
The City of Sierra Madre operates under a Council-Manager form of government. Under this structure, the City Council establishes legislative policy and organizational priorities, while the City Manager serves as the administrative head of the City and is responsible for directing City operations, supervising staff, and implementing the policies and direction established by the City Council.

Section 2.08.080 of the Sierra Madre Municipal Code further provides that the City Council and its members shall deal with the administrative services of the City through the City Manager, except for purposes of inquiry. The Municipal Code also provides that the City Manager receives orders and instructions from the City Council acting at a duly convened meeting and that individual Council Members may not independently direct the City Manager or City staff.

From time to time, individual Council Members may wish to raise an issue for future consideration, request that a policy matter be brought before the City Council, or seek additional information regarding a matter of community interest. These requests are an important part of the Council's ability to identify emerging issues and respond to community concerns.

Some requests can be addressed through existing information or routine administrative activity. Others, however, may require substantial staff time or expenditure of City resources, including policy research, preparation of staff reports, financial analysis, legal review, engineering work, consultant services, preparation of ordinances or resolutions, or coordination among multiple departments.

The proposed Future Agenda Item Request Policy is intended to establish a consistent process for distinguishing between these types of requests and to clarify when direction from the City Council as a body is necessary before substantial City resources are committed.

DISCUSSION & ANALYSIS
The proposed policy establishes a formal process through which any Council Member may request that a matter be considered at a future City Council meeting while preserving the respective legislative and administrative roles established under the City's Council-Manager form of government.

The proposed policy expressly preserves the ability of individual Council Members to propose matters for future consideration, raise constituent concerns, request existing information, and seek status updates regarding City programs, projects, and other matters of public concern. Accordingly, the policy is not intended to limit a Council Member's ability to ask questions or identify matters that may warrant further Council consideration. Rather, it addresses the point at which a request would require substantial additional staff work or expenditure of public resources.

Under the proposed policy, a request to place a matter on a future agenda would not, by itself, constitute authorization for staff to undertake substantial research, analysis, policy development, or other new administrative work. When a proposed future agenda item would require a significant commitment of staff time, legal services, consultant assistance, or other City resources, the matter would first be presented to the City Council for authorization. This allows the Council collectively to determine whether the proposed item warrants the expenditure of City resources and should be incorporated into the City's work program.

Initial discussion would be limited to whether the matter should be placed on a future agenda and whether City resources should be devoted to preparing the item. Consideration of the substantive merits of the proposed policy or action would occur when the matter is subsequently placed on a properly noticed agenda. Once the City Council directs that an item return for future consideration, the City Manager would determine the appropriate scheduling of the item based on staffing capacity, applicable legal requirements, fiscal impacts, operational priorities, and the overall City Council work program.

The proposed policy would not require separate Council authorization for work already within the City's established work program or the City Manager's administrative authority. This includes matters that have previously been directed by the City Council; are included in the adopted budget; are part of the City Council Strategic Plan or Work Plan; are required by federal, state, or local law; are necessary for routine administration of City business; or otherwise fall within the City Manager's authority under the Municipal Code. This distinction is intended to ensure that the policy does not unnecessarily delay routine City operations or matters for which the Council has already provided direction.

The proposed policy also addresses circumstances in which a Council Member inquiry initially appears routine but would require substantial additional research, policy development, legal analysis, or preparation of a new work product. In those situations, the City Manager or City Attorney could advise the requesting Council Member that the request exceeds the scope of a routine inquiry and recommend that the matter be presented to the full City Council for consideration as a future agenda item. This process would provide a consistent mechanism for managing staff workload while allowing the City Council collectively to determine whether additional resources should be allocated to the requested work.

STRATEGIC PLAN RELATIONSHIP
Not applicable.

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

FISCAL IMPACT
There is no direct fiscal impact associated with adoption of the proposed policy. Implementation of the policy may assist the City in managing indirect costs associated with staff time, consultant services, legal review, and other City resources by requiring Council authorization before substantial resources are committed to new assignments that are outside the City's existing work program or the City Manager's administrative authority.

Approved by:
___________________________
Michael Bruckner
City Manager
Attachments
Attachment 1 - DRAFT CC 27-01 Future Agenda Item Request Policy.pdf

CITY OF SIERRA MADRE

CITY COUNCIL POLICY
POLICY NUMBER: ______________________
ADOPTED: _________________________
AMENDED: __________________________
CITY MANAGER APPROVAL: _____________

FUTURE AGENDA ITEM REQUEST POLICY
I. PURPOSE:

The City of Sierra Madre operates under the Council-Manager form of government established by Chapter 2.08 of the Sierra Madre Municipal Code. Under this form of government, the City Council establishes legislative policy and priorities, while the City Manager serves as the administrative head of the City and is responsible for directing City operations, supervising City staff, and implementing the policies and direction of the City Council.

Section 2.08.080 of the Sierra Madre Municipal Code provides that the City Council and its members shall deal with the administrative services of the City only through the City Manager, except for the purpose of inquiry; that the City Manager shall receive orders and instructions only from the City Council sitting in a duly convened meeting; and that no individual Council Member shall give orders or instructions to the City Manager or City staff. These provisions establish that the City Council exercises its authority collectively and that administrative direction is carried out through the City Manager.

Preparing agenda reports, fiscal analyses, engineering studies, legal memoranda, consultant work, presentations, ordinances, resolutions, and related materials requires the commitment of City staff time and other public resources. Because the assignment and prioritization of that work are administrative functions under the authority of the City Manager, no individual Council Member may independently direct the work or commit City resources to a new assignment.

Accordingly, and consistent with Section 2.08.080 of the Sierra Madre Municipal Code, new administrative work should be undertaken only upon direction of the City Council acting as a body, unless otherwise required by law, previously authorized by the City Council, or within the City Manager’s existing administrative authority.

The purpose of this policy is to establish a consistent and transparent process through which any Council Member may propose a matter for future City Council consideration while preserving the Council-Manager form of government, ensuring responsible stewardship of public resources, and maintaining organizational focus on priorities established by the City Council.

II. POLICY STATEMENT:

Any Council Member may propose a matter for future City Council consideration, raise a constituent concern, or request information regarding City operations.

A request to place a matter on a future agenda does not, by itself, authorize staff to undertake substantial research, analysis, policy development, or other administrative work. Unless the work is required by law, has already been authorized by the City Council, or falls within the City Manager’s existing administrative authority, staff resources shall be committed only after the City Council approves the request by majority vote or consensus at a duly convened meeting.

Nothing in this policy limits a Council Member’s ability to make inquiries of the City Manager, request existing information, or seek status updates regarding City programs, projects, or matters of public concern, consistent with Section 2.08.080 of the Sierra Madre Municipal Code.

III. DEFINITIONS:

Agenda Item Request: A request made by a member of the City Council seeking future City Council discussion or action on a legislative, policy, operational, or strategic matter.

Administrative Direction: Direction requiring the City Manager to assign staff, prioritize workloads, conduct research, prepare reports, coordinate departments, obtain legal or consultant services, or otherwise expend City resources in support of a proposed agenda item.

Routine Administrative Activity: Work that has previously been authorized by the City Council through adoption of the annual budget, Strategic Plan, Council Work Plan, Capital Improvement Program, existing City policies, or other formal Council action, or work otherwise within the City Manager's administrative authority.

Substantial Staff Resources: City employee time or consultant services beyond routine administrative inquiries, including preparation of staff reports, financial analyses, legal memoranda, engineering reviews, policy research, presentations, or other work products requiring significant staff effort.

IV. PROCEDURES:

A. Initiation of Request
Any member of the City Council may request consideration of a future agenda item during the Future Agenda Items portion of a regular City Council meeting or at another appropriate time during a duly convened meeting.

B. Initial Consideration
Discussion at the time of the request shall be limited to whether the proposed item warrants expenditure of City resources and placement on a future agenda. Discussion regarding the merits of the proposed policy or action should occur only after the matter has been properly noticed for consideration at a future meeting.

C. Authorization
The City Manager shall not assign staff or otherwise authorize substantial expenditure of City resources in support of the requested agenda item unless the City Council, by majority vote or consensus during a duly convened meeting, directs that the item be scheduled for future consideration.

Upon receiving such direction, the City Manager shall determine the appropriate scheduling of the item based upon staffing capacity, legal requirements, fiscal impacts, operational priorities, and the overall City Council work program.

D. Existing Work Program
A separate City Council authorization shall not be required for matters that:

1. Have previously been directed by the City Council;

2. Are included within the adopted budget;

3. Are included within the City Council Strategic Plan or Work Plan;

4. Are required by federal, state, or local law;

5. Are necessary for the routine administration of City business; or

6. Are otherwise within the City Manager’s authority under the Municipal Code.

E. Council Member Inquiries
Nothing in this policy prohibits individual Council Members from requesting factual information, legal guidance, status updates, explanations regarding existing City programs, or other inquiries permitted by Section 2.08.080 of the Sierra Madre Municipal Code.

If responding to an inquiry requires substantial staff research, policy development, or preparation of new work products, the City Manager or the City Attorney may defer the request and recommend that it be considered by the full City Council pursuant to this policy.

V. APPLICABILITY:

This policy applies to requests by individual Council Members that would require the City Attorney to undertake significant legal research or the City Manager to direct City staff or expend public resources in support of a proposed future agenda item.

This policy shall not supersede any requirement imposed by the Ralph M. Brown Act, state or federal law, the Sierra Madre Municipal Code, or any action previously authorized by the City Council.

VI. RESPONSIBILITY:

The Mayor, City Council, City Manager, City Attorney, City Clerk, and Department Directors are responsible for administering this policy.

VII. ATTACHMENTS / REFERENCES:

Sierra Madre Municipal Code Chapter 2.08.080(A)