Because 107.1 at Sierra Madre was in place before the 1964 spacing rules went into effect, it's grandfathered with respect to KROQ and KLVE. If spacing to those two stations were the only issue, KSSE could go all the way up to the top of Wilson, or to the Verdugo KROQ site. And if memory serves, there was a period when KSSE was indeed operating from the top of Wilson with very limited power (50 watts ERP or so?) under STA after a fire at its licensed site.
There are other issues at play, too, though. IF spacing restricts how close KSSE can get to stations on 96.3 and 96.5, which means it can't actually go up on Verdugo with KROQ and KXOL. The need to provide city-grade coverage of all of Arcadia might be an issue from Verdugo as well.
Then you have spacing issues to other stations on 107.1 in Fallbrook and Ventura. I think (but don't recall with certainty) that KSSE's increase from 3 kW to 6 kW was part of a coordinated set of moves and power upgrades implemented by Big City when it owned all three 107.1 signals.
The KSSE licensed site isn't on Wilson or Harvard. It's much, much lower (1800' or so AMSL instead of 5700' for Wilson), down in the foothills above Sierra Madre and Arcadia. There's an on-channel booster in the Hollywood Hills that squirts an additional 107.1 signal out over Burbank and the San Fernando Valley, an area that would otherwise be completely terrain-blocked to KSSE.