AGENDA
FINANCE COMMITTEE
SPECIAL MEETING NOTICE
FEBRUARY 27, 2023
PUBLIC MEETING 3:00 P.M.
M
embers
Victor M. Gordo, Mayor
Tyron Hampton, District 1
Felicia Williams, District 2
S
TAFF
Matthew Hawkesworth, Director of Finance
Theresa Fuentes, Assistant City Attorney
Gloria Acevedo, Recording Secretary
M
ISSION STATEMENT
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with our history, culture and unique character.
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I
tems on the agenda may not be called in order listed. Agendas and supporting documents are available on the Internet at
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erials 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”
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FEBRUARY 27, 2023 AT 3:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
Li
nk to City Meeting Policy:
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orrespondence will be forwarded to the Committee prior to the start of the meeting, posted online, and made part of the legislative record for the item.
LIVESTREAM WITH CAPTIONING IS AVAILABLE AT WWW.PASADENAMEDIA.ORG, AND ALSO AT WWW.CITYOFPASADENA.NET/COMMISSIONS/AGENDAS, I
F YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION PURSUANT
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SPECIAL MEETING
AGENDA
FINANCE COMMITTEE
FE
BRUARY 27, 2023
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
F ebruary 6, 2023 Special Meeting
February 13, 2023 Cancellation Notice
NEW BUSINESS
1. AUTHORIZATION TO ENTER INTO CONTRACT WITH SOUTH COAST FIRE EQUIPMENT, INC. FOR THE PURCHASE OF ONE FIREMATIC FORD F550 AIR-LIGHT UNIT FOR A TOTAL OF $585,163
2. AM
ENDMENT TO THE HOUSING DEPARTMENT’S FISCAL YEAR 2023
ADOPTED OPERATING BUDGET AND AUTHORIZATION TO AMEND
CONTRACT NO. 31830 WITH THE FID GROUP DBA FRIENDS IN DEED WITH
ADDITIONAL FUNDING FOR THE PROVISION OF MOTEL VOUCHERS
INFORMATION ONLY
3. GENERAL FUND RESERVES AND POTENTIAL USE OF THE OPERATING
RESERVE
ADJOURN
A
PPROVAL OF MINUTES
February 6, 2023 Special Meeting
February 13, 2023 Cancellation Notice
01 2/6/2023
CITY OF PASADENA
FINANCE COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER S249
FEBRUARY 6, 2023
SPECIAL MEETING
O
PENING Chair Gordo called the special meeting of the Finance Committee to order at 3:06 p.m.
ROLL CALL: Mayor Victor M. Gordo (Chair)
Councilmember Tyron Hampton (Arrived at 3:20 p.m.)
Vice Mayor Felicia Williams
S
taff: Miguel Márquez, City Manager
David Reyes, Acting Assistant City Manager
Theresa Fuentes, Assistant City Attorney
Matthew Hawkesworth, Director of Finance
Gloria Acevedo, Recording Secretary
AP
PROVAL OF MINUTES It was moved by Vice Mayor Williams and seconded by Chair Gordo to approve the January 23, 2023 Special Meeting minutes as submitted.
I
NFORMATION ONLY ECONOMIC UPDATE AND FY 202 4 OPERATING BUDGET
OUTLOOK
C
hair Gordo introduced the item and Matthew Haw kesworth, Director of Finance, provided a PowerPoint presentation and responded to questions.
Related to the November 2024 state ballot measure regarding the City’s ability to set fees and charges, Chair Gordo inquired about the amount of cost recovery the City may be entitled to recover related to fees and charges for services it provides. Mr.
Hawkesworth stated that since the f ederal government may impose lower fees than the state, the City would be entitled to the minimum amount that is needed to achieve the set goal.
Chair Gordo expressed concern about the need to di minish services in the future due to the inability to recover the full cost of services.
V
ice Mayor Williams asked if business travel returned to pre- pandemic numbers, ho w much of an increase could be
generated by the transient occupancy tax (TOT). Mr.
Hawkesworth indicated it would increase TOT by a couple million
02 2/6/2023
dollars. Vice Mayor Williams asked for confirmation that the City collects Utility Users Tax (UUT) on natural gas and if the City is seeking funding opportunities from the inflation reduction act. Mr.
Hawkesworth responded that UUT is collected in the SoCalGas bills and that in the Legislative Platforms there are categories that the City reviews for funding opportunities. Lastly, Vice Mayor Williams shared that the Armory Center for the Arts is interested in purchasing the property they are currently leasing from the City. Mr. Hawkesworth will reach out to the Economic
Development Department to review the property.
C
ouncilmember Hampton inquired about the support the City provides to the Pasadena Unified School District (PUSD) through tax initiatives and asked if the support is still needed. He also asked if PUSD has money in their reserves account and if so, how much. Councilmember Hampton stated the City Council and the residents should have this information. Mr. Hawkesworth indicated that a meeting with PUSD board members and the City is forthcoming as such meeting takes place annually.
C
ouncilmember Hampton requested a list of C ity-owned
properties being occupied by non-profits along with the dollar amount of support provided by the City and to state the public benefit. Mr. Hawkesworth will provide the data at a future Finance Committee meeting. Vice Mayor Williams supported the request and added that it is important to understand the public benefit that is provided by these entities. Miguel Márquez , City Manager added that current contracts and their expirations should be added to the list.
C
hair Gordo compared the revenue in the General Fund from pre COVID-19, where the fund was at $269 million to the current amount ($300 million) and asked about the significant increase.
Mr. Hawkesworth stated most of the growth came from property taxes followed by sales tax.
C
hair Gordo inquired on the current level of funds being generated by the TOT. Mr. Hawkesworth stated that before the pandemic the amount was trending at $18 million, today it is at $16 million, it is anticipated TOT will return to pre-pandemic figures in 2024.
C
hair Gordo asked about the status of the cost recovery study for the refuse and sewer services and whether there is data on how low the City is trending. Mr. Hawkesworth stated that the last increase in refuse fees was 10-years ago and that the cost recovery study is in its initial state; however, there are still sufficient funds to fund operations . Chair Gordo expressed the importance of completing the study to prepare residents, since
03 2/6/2023
the Water and Power Department is also contemplating
increasing their rates.
F
ollowing a discussion and on the order of the Chair and consensus of the Committee, the item was received and filed.
RO
SE BOWL OPERATING COMPANY FINANCIAL UPDATE
M
atthew Hawkesworth, Director of Finance, provided a brief outline on the item and pointed out a typo in the Flea Market data, the data is for 2022 rather than 2023.
C
hair Gordo asked if there was a correlation between the increase in hotel stays during the weekend to the increase in Rose Bowl events. Mr. Hawkesworth responded that the figures also represent business travel; however, it was noted that some visitors appear to be extending business travel to attend weekend events such as music festivals.
F
ollowing a brief discussion, on the order of the Chair and consensus of the Committee, the item was received and filed.
P
ASADENA CENTER OPERATING COMPANY FINANCIAL
UPDATE
M
atthew Hawkesworth, Director of Finance, provided a brief outline on the item.
C
ouncilmember Hampton requested a report on the parking
revenue generated by events at the Pasadena Center Operating Company. Mr. Hawkesworth will relay the request to the
Transportation Department.
F
ollowing a brief discussion, on the order of the Chair and consensus of the Committee, the item was received and filed.
04 2/6/2023
ADJOURNMENT On the order of the Chair, the special meeting of the Fi nance Committee was adjourned at 3:58 p.m.
A
TTEST: ______________________
Mayor Victor Gordo, Chair
Finance Committee
____
________________
Gloria Acevedo
Recording Secretary
NEW BUSINESS
ITEM 1
AUTHORIZATION TO ENTER INTO CONTRACT
WITH SOUTH COAST FIRE EQUIPMENT, INC. FOR
THE PURCHASE OF ONE FIREMATIC FORD F550
AIR-LIGHT UNIT FOR A TOTAL OF $585,163
Fire Department
Authorization to Enter Into Contract with
South Coast Fire Equipment, Inc. for the
Purchase of One Firematic Ford F550 Air-Light
Unit for a Total of $585,163
1 February 27, 2023
Finance Committee
Chad Augustin
Fire Chief
Fire Department
Background
2 • Firefighters wear self-contained breathing
apparatus (SCBA) devices on fire and hazardous
m
aterials incidents to provide breathable air in
e
nvironments with oxygen deficiency, smoke,
gases, and other airborne contaminants that may
be
otherwise dangerous to breathe
• Standard tanks are only capable of carrying
approximately 30 minutes of air for personnel
• A supplemental supply of breathing air is often
needed on multiple alarm fires or hazardou
s
m
aterial incidents
Fire Department
Background
3 • An air-light unit, also known as a breathing support unit, is a specialized piece of firefighting apparatus used to fill multiple SCBA bottles simultaneously, provide
electricity to rescue sites in remote locations, and is outfitted with portable and telescoping lighting
equipment
• Personnel currently transport empty SCBA tanks back to a fire station location and return the filled tanks to
personnel on scene
• Transportation methods pose safety hazards as there
are no proper mechanisms to secure the SCBA bottles,
and refilling SCBA tanks offsite creates delays in
emergency response capabilities
Fire Department
Background
4 • The Department responds to approximate 3,700 fire
related service calls annually including automatic and
mutual aid incidents, and would like to purchase a front- line air-light unit to be utilized on these incidents
• In preparation for this purchase, the PFD convened a
committee to develop the vehicle specifications based
on current and future departmental needs
• The Firematic Ford F550 model was determined by the
committee to be the best fit; this proposed purchase is in line with the current fleet of fire apparatus, which is critically important as apparatus standardization
improves firefighter safety and efficiency
Fire Department
Background
5 • The Department is requesting to purchase the aerial ladder truck utilizing the Houston Galveston Area
Council (HGAC) contract
• The HGAC is one of the largest regional planning
commissions in the country and focuses on providing
purchasing solutions to jurisdictions
• HGAC manages HGACBuy, a nationwide government
procurement service which awards contracts through a
public competitive procurement process; contracts are
available to participating members such as the City of
Pasadena
Fire Department
Background
6 • On June 27, 2019, HGACBuy issued an invitation to
submit competitive bids for "Fire Service Apparatus (All Types)”
• The bid closed on July 24, 2019 and 29 bids were
received
• HGACBuy recommended awarding South Coast Fire
Equipment, Inc. the contract for Special Service
Apparatus, including the air-light unit
• Utilizing the HGACBuy contract is in the City's best interest as it reduces the amount of time required to take
delivery of new equipment and eliminates the need to
solicit for items that are already competitively priced
Fire Department
Background
7 • South Coast Fire Equipment, Inc. has agreed to extend the contract prices, terms, and conditions of this
contract to the City of Pasadena for the purchase of
one Firematic Ford F550 Air-Light Unit using the
HGACBuy Contract FS12-19
• An additional 5% contingency allowance of $27,865 has also been included to address possible inflation due to current unstable market conditions faced by the
manufacturers and their supply chain
• There are no local vendors and no electric options
available on the market for this specialized apparatus
Fire Department
Fiscal Impact
• The total cost of this action will be up to $585,163
• Funding will be addressed in the Fire Department
Gener
al Fund operating budget account for Fire and
Rescue Services, and will be supported by future
appropriations generated from supplemental
reimbursement payments from ambulance
transportation activity
• Indirect and support costs such as maintenance and
re
pairs are anticipated to be $100,000 over the 20 year
lifecycle of the vehicle and will be addressed annually by utilization of existing budgeted appropriations in the Fire Department’s operating budget
8
Fire Department
9 Recommendation
• It is recommended that the City Council:
> Find that this action is exempt under the California
Environmental Quality Act (CEQA) in accordance with
Section 15061 (b)(3), the General Rule that CEQA only
applies to projects that may have an effect on the
environment;
> Authorize the City Manager to enter into a purchase order contract with South Coast Fire Equipment, Inc. for the
purchase of one Firematic Ford F550 Air-Light Unit in an amount not to exceed $585,163. Neither Competitive
Bidding nor Competitive Selection are required pursuant to City Charter Section 1002(h) and Pasadena Municipal
Code Section 4.08.049(A)(3), contracts with other
governmental entities
NEW BUSINESS
ITEM 2
AMENDMENT TO THE HOUSING DEPARTMENT’S
FISCAL YEAR 2023 OPERATING BUDGET AND
AUTHORIZATION TO AMEND CONTRACT NO.
31830 WITH THE FID GROUP DBA FRIENDS IN
DEED WITH ADDITIONAL FUNDING FOR THE
PROVISION OF MOTEL VOUCHERS
Department of Housing
AMENDMENT TO THE HOUSING DEPARTMENT’S
FISCAL YEAR 2023 OPERATING BUDGET AND
AUTHORIZATION TO AMEND CONTRACT NO. 31830
WITH THE FID GROUP DBA FRIENDS IN DEED WITH
ADDITIONAL FUNDING FOR THE PROVISION OF
MOTEL VOUCHERS
Department of Housing
February 27, 2023
Department of Housing
BACKGROUND
• Friends In Deed (FID) operated the congregate Bad
Weat
her Shelter for over three decades.
• FID lost their long-ti me lease of a church gym in March 2020.
• FID and City staff have worked year round over the past th
ree years to identify an alternative site.
> Have considered City-ow ned and privately owned properties. > Have not yet found a viable site that meets location requirements wi
th a willing property owner.
• The Housing Department publicly issued a Winter Shelter Si
te Request for Information in July 2022 but did not
receive any responses.
• A potential site is currently under consideration but is not avai
lable for the 2023 winter season.
2
Department of Housing
BACKGROUND
• The Housing Department has funded the provision of
weath
er-activated motel vouchers in lieu of a
c
ongregate Bad Weather Shelter since December 2020.
> The Department does not administer motel vouchers directly. • An unusually rainy January quickly exhausted grant
fu
nding allocated to weather-activated motel vouchers.
• Council approved the addition of up to $100,000 of
Gen
eral Fund to Contract 31830 with Friends In Deed on
January 18, 2023 to support expanded motel voucher
serv
ices.
• From January 18 through February 23, General Funds
hav
e provided motel stays to 93 people across 15 nights
wi
th inclement weather.
3
Department of Housing
FISCAL IMPACT
4 Dates
(Thursday-
Wednesday)
# of People
Served
(# Funded by
GF)
# of Nights
Activated GF Expenditures
Expenditures
from Other
Sources Total Expenditures
Week 1
1/5/23 -
1/11/23 21 (0) 6 $0 $15,833.20 $15,833.20
Week 2
1/12/23 -
1/18/23 15 5 $0 $10,555.50 $10,555.50
Week 3
1/19/23 -
1/25/23 63 (2) 6 $1,155.50 $33,353.00 $33,353.00
Week 4
1/26/23 -
2/1/23 59 (59) 3 $18,852.15 $113.85 $18,966.00
Week 5
2/2/23 –
2/8/23 0 0 $0 $0 $0
Week 6
2/9/23 -
2/15/23 69 (69) 2 $14,645.30 $0 $14,645.30
Week 7
2/16/23-
2/22/23 74 (74) 4 $29,290.60 $0 $29,290.60
Week 8*
2/23/23-
3/1/23 74 (48) 7 $36,056.45 $18,955.05 $55,011.50
Total
112
unduplicated 33 $100,000.00 $78,810.60 $178,810.60
Department of Housing
FISCAL IMPACT
Approval of the recommended actions will increase the
Department’s Fiscal Year 2023 Operating Budget in the
Other Housing Fund (238) by $100,000 for the amendment to Contract No. 31830 with Friends in Deed. The General Fund’s unappropriated fund balance will decrease by $100,000.
5
Department of Housing
RECOMMENDATIONS
1. Find that the recommended actions are exempt from
th
e California Environmental Quality Act ("CEQA")
pursuant to State CEQA Guidelines per Section 15061
(b) (3), the “common sense” provision that CEQA only
applies to projects that may have an effect on th
e
en
vironment;
2. Amend the Housing Department’s Fiscal Year 2023
Oper
ating Budget by transferring $100,000 from the
u
nappropriated fund balance in the General Fund
(101) to the Housing Department’s Other Housing Fund
(238) for expenses associated with the provision of
weather-activated motel vouchers to peopl
e
ex
periencing homelessness as detailed in the
b
ackground section of this report;6
Department of Housing
RECOMMENDATION
3. Authorize the City Manager to amend Contract No. 31830 wit
h The FID Group, dba Friends In Deed, to increase the
t
otal contract value by up to $100,000 for emergency
shelter services as detailed in the body of this report.
Competitive price bidding is not required pursuant to City Charter Section 1002(F) (contracts for professional or
unique services); and
4. To the extent the amendment could be considered
a
separ
ate procurement subject to the Competitive
S
election Process, grant the contract an exemption
pursuant to Pasadena Municipal Code (PMC) Section
4.08.049(B), contracts for which the City’s best interests are
serv
ed.
7
INFORMATION ONLY
ITEM 3
GENERAL FUND RESERVES AND POTENTIAL USE
OF THE OPERATING RESERVE
DEPARTMENT OF FINANCE
February 27, 2023
TO: Finance Committee
FROM: Matthew E. Hawkeswo, h
Director of Finance
SUBJECT: General Fund Reserves and Potential Use of the Operating Reserve Each year, the City Council confirms by resolution the commitment of fund balance for the City's General Fund Reserve amount. The General Fund reserve is a component of two factors: Emergency Reserve of 15 percent of the fiscal year's Operating Budget ($43,003,950) and the Operating Reserve of 5 percent of the fiscal year's Operating Budget ($14,334,650). In addition to these reserves, the City also maintains an IRS Section 115 Trust that is a reserve for future pension and other post-employment benefits. The Section 115 Trust was valued at $13.77 million as of December 31, 2022.
The fund balance policy creating the separate Emergency and Operating Reserve allocations was developed in order to provide flexibility to the City Council to utilize some reserves for strategic purchases without declaring a fiscal emergency. Operating Reserves totaling more than $10.0 million were used during calendar years 2020 and 2021 to provide a number of services during the early stages of the COVID-19 response including meal preparation, donations to food banks, the Great Plates program, small business grants, and reopening the recreation loop around the Rose Bowl. As revenues improved in the General Fund and some federal assistance was received, the Operating Reserve was fully funded by the conclusion of Fiscal Year (FY) 2022.
On February 28, 2023, the Municipal Services Committee will receive an update from the Water and Power Department regarding the increased costs to procure and generate power and the need to implement a Power Cost Adjustment (PCA) of $0.025 kWh. The PCA is required to maintain a healthy financial position of the power utility; however, the PCA will not be sufficient to generate net income to make the full $18.0 million General Fund Transfer for FY 2024, as set forth in Charter Section 1408. It is expected that the General Fund Transfer will instead be $13.0 million, creating a shortfall of approximately $5.0 million for FY 2024. It is believed that this shortfall is a one-year concern that can be repaid in future General Fund Transfers with proper administration of the PCA and the power utility's net income. Therefore, the recommendation from staff as the FY 2024 Operating Budget is developed is that the use of Operating Reserve funds in an amount up to the anticipated shortfall in the General Fund Transfer is appropriate to avoid budget reductions, with the expectation that the reserve funds will be recommitted in FY 2025.