AGENDA
FINANCE COMMITTEE
SPECIAL MEETING NOTICE
AUGUST 8, 2022
PUBLIC MEETING 3:00 P.M.
Members
Victor M. Gordo, May or
Felicia Williams, District 2
John J. Kennedy, District 3 (in Memorium)
Andy Wilson, District 7
STAFF
Matthew Hawkesworth, Director of Finance
Theresa Fuentes, Assistant City Attorney
Gloria Acevedo, Recording Secretary
MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, cult ure and unique character.
In compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device.
Language translation services are available for this meeting by calling (626)744
-4124 at least 24 hours in advance.
Habrá servicio de interpretación disponible para éstas juntas llamando al (626)744-4124 por lo menos con 24 horas de anticipación.
Meetings
are broadcast live on cable Channel 3 and on the Internet at http://pasadena.granicus.com/mediaplayer.php?camera_id=2&publish_id=9 and https://www.pasadenamedia.org/watch/ (Click on Video Streamlining on the right side of the screen).
Items on t
he agenda may not be called in order listed. Agendas and supporting documents are available on the Internet at
https://www.cityofpasadena.net/commissions/city-council-finance-committee/ Materi
als related to an item on this Agenda submitted to the Finance/Audit Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”
THE SPECIAL FINANCE COMMITTEE MEETING ON AUGUST 8, 2022 AT 3:00 P.M.
WILL TAKE PLACE SOLELY BY VIDEOCONFERENCE/TELECONFERENCE.
TO ACCESS THE MEETING:
http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND
WWW.PASADENAMEDIA.ORG
In order to facilitate public participation at meetings held solely by electronic means, the City will accept public comment in the following manner:
1. During the meeting, members of the public may provide live public comment by submitting a speaker card prior to the start of public comment on that item, at the following webpage:
www.cityofpasadena.net/commissions/public-comment
After submitting a public speaker card, join the virtual meeting at the published start time with a computer, other electronic device, or by telephone. The same name or telephone number on the Speaker Card must be used for the virtual meeting in order to locate and unmute the speaker.
Computer or electronic devices, join the meeting at:
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Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446
2. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:
[email protected]
Correspondence will be forwarded to the legislative body prior to the start of the meeting.
3. If assistance is needed by phone, please call the City Clerk's Office at:
(626) 744-4124.
IF YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION
PURSUANT TO THE AMERICANS WITH DISABILITIES ACT
BECAUSE YOU ARE UNABLE TO PARTICIPATE ELECTRONICALLY AS SET FORTH ABOVE, CONTACT THE CITY CLERK’S OFFICE
AS SOON AS POSSIBLE AT (626) 744-4124 OR
[email protected].
SPECIAL MEETING
AGENDA
FINANCE COMMITTEE
A
UGUST 8, 2022
Public Meeting: 3:00 P.M.
Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING - 3:00 P.M.
ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING
AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS
CONSIDERED
APPROVAL OF MINUTES
M ay 23, 2022 S pecial Meeting
June 13, 2022 Cancellation Notice
NEW BUSINESS
1. L
OAN TO THE PASADENA CENTER OPERATING COMPANY (PCOC)
TO FUND CAPITAL IMPROVEMENT PROJECTS
INFORMATION ONLY
2. FY 2022 CAPITAL IMPROVEMENT PROGRAM - FOURTH QUARTER
MONITORING REPORT
ADJOURN
PAGE 1
APPROVAL OF
MINUTES
• MAY 23, 2022
• JUNE 13, 2022
SPECIAL MEETING
CANCELLATION NOTICE
PAGE 2
01 05/23/2022
CITY OF PASADENA
FINANCE COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
MAY 23, 2022
SPECIAL MEETING
The meeting was convened and held virtually by videoconference/teleconference.
OPENING Chair Mayor Gordo called the special meeting of the Finance Committee to order at 3:03 p.m.
ROLL CALL:
Staff
Mayor Victor M. Gordo (Chair)
Vice Mayor Andy Wilson
Councilmember John Kennedy (Absent)
Councilmember Felicia Williams
Theresa F
uentes, Assistant City Attorney
Matthew Hawkesworth, Director of Finance
Phillip Leclair, Acting Assistant City Manager
Cynthia Kurtz, Interim City Manager
Vic Erganian, Deputy Director Finance/Treasurer
Natalie Ouwersloot, Water Engineering Manager
Jeffrey Kightlinger, Interim General Manager
Stacie Jacobson, Management Analyst
Tim Park, Budget Administrator
Flora Karmiryan, Principal Administrative Analyst
Byanca Banaga, Administrative Analyst
Jonathan Paul, Principal Administrative Analyst
Rachelle Yalung, Senior Administrative Analyst
Ruthe Holden, Internal Audit Manager
Rebecca Takahashi, Senior Internal Auditor
Tiffany Jacobs Quinn, Acting Director of Human
Resources
Alex Souto, Human Resources Manager
Matthew Howard, Workers Compensation Supervisor
Lisa Derderian, Public Information Officer
Gloria Acevedo, Recording Secretary
NEW BUSINESS AUTHORIZE A CONTRACT WITH PACIFIC HYDROTECH CORPORATION
TO FURNISH LABOR, EQUIPMENT AND MATERIALS NECESSARY TO
INSTALL THE WADSWORTH GROUNDWATER TREATMENT PLANT
AND APPROVE AMENDMENTS TO THE FISCAL YEAR 2022 CAPITAL
IMPROVEMENT PROGRAM BUDGET
PAGE 3
02 05/23/2022
Chair Gordo provided introductory comments, and Natalie Ouwersloot, Engineering Manager provided a short presentation and answered questions.
Vice Mayor Wilson asked for the completion timeline and supports the project.
Chair Gordo requested for staff to monitor the increase in materials in all projects to understand trends. This will allow more accurate fund allocations and to prioritize projects. The list should be reviewed at a future Municipal Services Committee.
Following discussion, it was moved by Vice Mayor Wilson, seconded by Councilmember Williams, to approve staff’s recommendation and forward the item to the City Council for consideration:
AYES: Chair Gordo, Councilmember Williams, Vice Mayor
Wilson
NOES: None
ABSENT: Councilmember Kennedy
ABSTAIN: None
JOINT ACTION: EXTENSION OF THE STANDBY BOND PURCHASE
AGREEMENT (SBPA) WITH BANK OF THE WEST RELATED TO THE
PASEO COLORADO BONDS
Chair Gordo provided introductory comments and Vic Erganian, Deputy Finance Director/Treasurer, provided a PowerPoint presentation Follo
wing discussion, it was moved by Vice Mayor Wilson, seconded by Councilmember Williams, to approve staff’s recommendation, and forward the item to the City Council for consideration:
AYES: Councilmember Williams, Vice Mayor Wilson,
Chair Gordo
NOES: None
ABSENT: Councilmember Kennedy
ABSTAIN: None
WORKSHOP ON RECOMMENDED FISCAL YEAR 2023 OPERATING
BUDGET
A. OPERATING BUDGET PRESENTATIONS:
CITY MANAGER – INTERNAL AUDIT AND PUBLIC
INFORMATION
Chair Gordo provided introductory comments and Phillip Leclair, Acting Assistant City Manager, presented a PowerPoint presentation on the City Manager’s budget and responded to questions. Ruthe Holden, Internal Audit Manager, presented the Internal Audit portion of the PowerPoint.
PAGE 4
03 05/23/2022
Vice Mayor Wilson asked for clarification on the reduction of contract services related the Foothill Workforce Board and confirmation that the reduction would not affect any services provided to the community.
On the order of the Chair, and by consensus of the Committee, the information was received and filed.
B. HUMAN RESOURCES
Chair Gordo introduced the item and Tiffany Jacobs-Quinn, Acting Director of Human Resources, provided a PowerPoint presentation.
On the order of the Chair, and by consensus of the Committee, the information was received and filed.
C. FINANCE
Matthew Hawkesworth, Director of Finance, provided a PowerPoint presentation and responded to questions.
Vice Mayor Wilson suggested a review of merchant payment fees and perhaps set a threshold on the type of transactions subject to the processing fee. Chair Gordo agreed that the full recovery cost should be considered associated specifically with development and permit fees.
Chair Gordo requested an overview of the City’s position regarding CalPERS to assure the City is prepared to deal with their most recent loss. In addition Chair Gordo asked for a report on the status of the police and fire pension fund to confirm they have a sustainable balance.
On the order of the Chair, and by consensus of the Committee, the information was received and filed.
D. FY 2023 ENHANCEMENT REQUESTS
Vice Mayor Wilson asked for confirmation that there had not been any changes to the enhancements since the beginning of the budget workshops.
On the or
der of the Chair, and by consensus of the Committee, the information was received and filed.
PAGE 5
04 05/23/2022
ADJOURNMENT On the order of the Chair, the special meeting of the Finance Committee was adjourned at 3:57 p.m.
ATTE
ST:
___________
_________
Gloria Acevedo
Recording Secretary
___________
______________________
Mayor Victor Gordo, Chair
Finance Committee
PAGE 6
PAGE 7
NEW BUSINESS
ITEM 1
LOAN TO THE PASADENA CENTER OPERATING
COMPANY (PCOC) TO FUND CAPITAL
IMPROVEMENT PROJECTS
PAGE 8
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Agenda Report
August 8, 2022
TO: Honorable Mayor and City Council
THROUGH: Finance Committee
FROM:Department of Finance
SUBJECT: LOAN TO PASADENA CENTER OPERATING COMPANY
(PCOC) TO FUND CAPITAL IMPROVEMENT PROJECTS
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the proposed action is not a project subject to the California Environmental Quality Act (CEQA) as defined in Section 21065 of CEQA and Section 15378 of the State CEQA Guidelines and, as such, no environmental document pursuant to CEQA is required for the project; and
2. Approve a loan to the PCOC for a term of 10-years in an amount not to exceed $2.5 million to be used for future PCOC capital improvement needs, to be repaid from PCOC's operating revenues as further described in this Agenda Report.
BACKGROUND:
Historically, PCOC has had several loans from the City to pay for major renovations and upgrades to the Pasadena Convention Center, Civic Auditorium, and Ice Skating Center. In 1999, the City provided PCOC with a 10-year $1.4 million loan for the renovation of the Conference Center. The loan was paid in full in 2019. Similarly in 2009 and during the construction of the Convention Center, PCOC entered into a $3 million loan agreement with the California Energy Commission to upgrade the HVAC system that allowed the new center to achieve LEED Gold Certification. This specific loan will be paid off in December 2022. Also in 2011, the City provided PCOC with another 10-year loan to build the Pasadena Skating Center and the loan was satisfied and paid in full in 2021.
These short-to-intermediate financing arrangements with the City allowed PCOC I
MEETING OFAGENDA ITEM NO.
PAGE 9
Loan to the Pasadena Center Operating Company
August 8,2022
to achieve its capital improvement objectives without the need for expensive capital borrowings in the financial market or from private banks.
Proceeds of the recommended loan will be used to help fund major capital improvement project needs including waterproofing and painting of the Civic Auditorium, interior painting, and other needs as they arise. The Civic Auditorium turns 91-years old in 2023 and needs many upgrades. This item was approved by PCOC Board on June 16,2022.
COUNCIL POLICY CONSIDERATION:
This action supports the City Council's strategic goal to maintain fiscal responsibility and stability.
PAGE 10
Loan to the Pasadena Center Operating Company
August 8, 2022
FISCAL IMPACT:
The loan will be structured as a 10-year borrowing and bear an interest rate equal to the current ten-year Treasury yield, which is 3% as of July 21, 2022. It is recommended that the loan be funded from the City's pooled cash and the interest received from the loan will be credited to the City's pooled cash account and distributed to all the participating funds. The annual principal and interest payment on the loan is estimated at $293,076.27 and payable from PCOC's operating revenues beginning the first anniversary of the loan funding date in accordance to the attached debt service schedule. There will be no prepayment penalties and PCOC will be able to pay off the balance of the loan at any time in the future from its operating revenues or from proceeds of future bond issues.
Respectfully submitted,
i'^J
MATTHEW^. HAWKESWORTH
Director of Finance
Prepared by:
L
(^
Vic^Ergqfiian
Deputy/Director of Finance/City Treasurer
Approved by:
/^
/iy.Ct~s>
yfNTHIA J/<LTRTZ
interim City Manager
Attachments: (1)
Attachment A - Debt Service Schedule
PAGE 11
Attachment A
I
PCOC LOAN
DEBT SERVICE SCHEDULE
Debt amount
Rate:
Term:
2,500,000
3%
10 Years
Paymrnt due
Date
Yearl
Year2
Year3
Year4
Year5
YearG
Year?
YearS
Year9
YearlO
Principal
payment
Interest
payment
Total
payment
Outstanding
Balance
08/08/23
08/08/24
08/08/25
08/08/26
08/08/27
08/08/28
08/08/29
08/08/30
08/08/31
08/08/32
218,076.27
224,618.56
231,357.11
238,297.83
245,446.76
252,810.17
260,394.47
268,206.31
276,252.49
284,540.03
75,000.00
68,457.71
61,719.16
54,778.44
47,629.51
40,266.10
32,681.80
24,869.96
16,823.78
8,536.24
293,076.27
293,076.27
293,076.27
293,076.27
293,076.27
293,076.27
293,076.27
293,076.27
293,076.27
293,076.27
2,281,923.73
2,057,305.17
1,825,948.06
1,587,650.23
1,342,203.47
1,089,393.30
828,998.83
560,792.52
284,540.03
0.00 PAGE 12
Department of Finance
Loan to Pasadena Center Operating
Company (PCOC) To Fund Capital
Improvement Projects
Vic Erganian
Deputy Director of Finance /Treasurer
August 8, 2022
Finance Committee Item 1 City Council Item #
PAGE 13
Department of Finance
Recommendation
1. Find the proposed action is not a project subject to CEQA as defined in Section 21065 of CEQA, and as such, no
environmental document pursuant to CEQA is required
for the project.
2. Approve a loan to the PCOC for a term of 10-years in an amount not to exceed $2.5 million to be used for future PCOC capital improvement needs.
2 PAGE 14
Department of Finance
3 Background
• Historically, PCOC has had several loans from the City to finance maj
or capital projects:
- Upgrades to the Pasadena Convention Center
- Civic Auditorium
- Ice Skating Center
• These short-to-intermediate financing arrangements allowed PCOC to ac
hieve its capital improvement objectives without the need for expensive capital/public financings in the financial market or from private banks.
• Proceeds of the recommended loan will be used to help fund major capital improvement projects including waterproofing and painting of the Civic Auditorium, interior painting, and other needs as they arise.
PAGE 15
Department of Finance
Fiscal Impact
• The loan will be structured as a 10-year debt;
• T
he loan will bear an interest rate equal to the 10-year US Treasury yield currently at 3%;
• The loan will be funded from the City’s Pooled cash;
• Interest received from the loan will be credited to the pooled portfolio and distr
ibuted to all participating funds in the pool;
• The annual debt service on the loan will be $293,076.27; • The loan will be paid from PCOC’s operating revenues commencing on the 1
st anniversary date of funding the loan; and
• There will be no prepayment penalties and PCOC will be able to pay off the
balance prior to the maturity date at any time from its operating revenues or from proceeds of future bond issues.
4 PAGE 16
INFORMATION ONLY
ITEM 2
FY 2022 CAPITAL IMPROVEMENT PROGRAM -
FOURTH QUARTER MONITORING REPORT
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