Your variable sa seems to be a scalar taking values between 0.001 and 0.2. Have you plotted the sum of squares as a function of sa to see if there are multiple local optima?
FYI, that exit message states that lsqcurvefit has found a local solution. However, there is no guarantee that it found a global solution. Again, I recommend that you plot the function on your interval to see the local optima. Most likely, the solution to your problem will be to start from a few other points in addition to the fixed 0.07 that you are using, and to take the best solution among the several local optima.
Alan Weiss
MATLAB mathematical toolbox documentation
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