AGENDA
MUNICIPAL SERVICES COMMITTEE
MEETING NOTICE
FEBRUARY 28, 2023
PUBLIC MEETING 4:00 P.M.
MEMBERS
Felicia Williams, Chair/Vice Mayor, District 2
Tyron Hampton, Councilmember, District 1
Justin Jones, Councilmember, District 3
Jason Lyon, Councilmember, District 7
STAFF
Sidney Jackson, General Manager
Lisa Hosey, Assistant City Attorney
Garrett Stevenson, 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, culture 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.
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4-4124 por lo menos con 24 horas de anticipación.
Items on the agenda may not be called in order listed.
Agendas and supporting documents are available on the Internet at http://www.cityofpasadena.net/commissions/city-council-municipal-services-committee/ Materials related to an item on this Agenda submitted to the Municipal Services Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”.
P
UBLIC COMMENT AT THE MUNICIPAL SERVICES COMMITTEE MEETING FOR FEBRUARY 28, 2023 AT 4:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
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nk to City Meeting Policy:
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CITY OF PASADENA
MEETING OF
THE MUNICIPAL SERVICES COMMITTEE
FEBRUARY 28, 2023
PUBLIC MEETING: 4:00 PM
PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
NOTICE IS HEREBY GIVEN that the regular meeting of the Municipal Services Committee will be held on Tuesday, February 28, 2023, at 4:00 p.m., to discuss matters on the attached agenda.
I HEREBY CERTIFY that this agenda in its entirety, was posted on the Internet at https://www.cityofpasadena.net/commissions/city-council-municipal-services-committee/ and on the Council Chamber Bulletin Board, Room S249, and the Bulletin Board in the rotunda area; City Hall, 100 North Garfield Avenue, this February 23rd by 6:30 p.m. and that copies hereof were faxed, emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution herein below.
Susana Castro
DISTRIBUTION:
MSC Committee Members Central Library General Manager Pasadena Weekly City Council City Clerk Director of Planning and Permitting Pasadena Star-News City Manager Director of Public Works Los Angeles Times Pasadena Now City Attorney Public Information Officer La Opinion Pasadena Journal
In compliance with the Americans with Disabilities Act of 1990, listening assistive 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 may be requested with 24-hour advance notice.
Habra servicio de interpretacion disponible para estas juntas llamando al (626) 744-4124 por lo menos con 24 horas de anticipación.
MEETING AGENDA
MUNICIPAL SERVICES COMMITTEE
FEBRUARY 28, 2023
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
APPROVAL OF MINUTES
J
anuary 17, 2023 (Special Meeting)
1. POWER COST ADJUSTMENT (PCA) – WHOLESALE ENERGY MARKET IMPACTS
2. SURVEY OF ELECTRIC BIKE INCENTIVE PROGRAMS
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
INFORMATION ONLY
ADJOURN
NEW BUSINESS
1 01 01/17/2023
CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
JANUARY 17, 2023
SPECIAL MEETING
OPENING The Chair called the special meeting of the Municipal Services Committee to order at 4:00 p.m.
ROLL CALL:
Staff:
Vice Mayor Felicia Williams, Chair
Councilmember Tyron Hampton
Councilmember Jason Lyon
Councilmember Justin Jones
Miguel Márquez, City Manager
David Reyes, Acting Assistant City Manager
Sidney Jackson, General Manager of Water and Power
Jeffrey Kightlinger, Interim General Manager of Water and Power Robert Castro, Power Resource Manager of Water and Power Lisa Hosey, Assistant City Attorney
Garrett Stevenson, Recording Secretary
APPROVAL OF MINUTES It was moved by Councilmember Hampton, seconded by Councilmember Jones, to approve the minutes of October 11, 2022 (Special meeting), October 25, 2022, November 8, 2022, November 22, 2022 (Cancelled meeting), December 13, 2022 (Cancelled meeting), and January 10, 2023 (Cancelled meeting) as submitted . (Motion Unanimously carried) (Absent: None)
NEW BUSINESS AUTHORIZATION TO ENTER INTO A 10 -YEAR POWER SALES
CONTRACT WITH SOUTHERN CALIFORNIA PUBLIC POWER
AUTHORITY FOR GEOTHERM AL ENERGY FROM CALPINE
GEYSERS, LLC FOR THE WATER AND POWER DEPARTMENT
Jeffrey Kightlinger, Interim General Manager of Water and Power, provided introductory comments, and Robert Castro, Power Resource Manager of Water and Power, summarized the agenda report as part of a PowerPoint presentation, and responded to questions.
The following residents spoke in support of the contract and advocated for the committee to agendize a power plan for a carbon free city by 2030:
Marc Futernick, Pasadena resident
Cynthia Cannady, representing NAACP
Robert Haw, representing Pasadena 100
Carl Selkin, representing Pasadena 100
Miguel Márquez, City Manager, responded that the City will present a resolution in support of carbon neutrality scheduled to be presented at the January 24, 2023, Municipal Services Committee.
2 02 01/17/2023
Councilmember Hampton asked staff to provide information on the impacts to the consumer’s electricity rates , once the geothermal energy contract with Calpine Geysers, LLC is presented to the City Council.
Vice Mayor Williams asked staff to provide information on Pasadena’s Renewable Portfolio Standard (RPS) percentage if the item is approved by City Council.
Following discussion, it was moved by Councilmember Hampton, seconded by Councilmember Jones, to approve the staff
recommendation, and forward the item to the City Council, with information on the impacts of consumer rates and Pasadena’s RPS . (Motion Unanimously carried) (Absent: None)
INFORMATION ONLY INTERMOUNTAIN POWER PROJECT UPDATE
Jeffrey Kightlinger, Interim General Manager of Water and Power, provided introductory comments, and Robert Castro, Power Resource Manager of Water and Power, summarized the agenda report as part of a PowerPoint presentation, and responded to questions.
Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
ANNUAL REPORT - FISCAL YEAR 2021 - 2022 AND WORK PLAN
FOR FISCAL YEAR 2022 - 2023 FOR PLANNING COMMISSION
Following a brief discussion, o n the order of the Chair, and by consensus of the Committee, the information was received and filed.
COUNCILMEMBER
COMMENTS
Councilmember Hampton asked staff to agendize electric bicycle rebates at a future Committee meeting for consideration.
ADJOURNMENT On the order of the Chair, the special meeting of the Municipal Services Committee was adjourned at 4:47 p.m.
ATTEST:
____________________
Garrett Stevenson
Recording Secretary
________________________
Vice Mayor Felicia Williams, Chair
Municipal Services Committee
3 ITEM #1
4 P ASADENA WATER AND POWER
MEMORANDUM
February 28, 2023
To: Municipal Services Committee
From: Sidney Jackson
General Manager
Subject: Power Cost Adjustment (PCA) – Wholesale Energy Market Impacts
This m emorandum is for information only , and it provides an up date on Pasadena Water and Power’s (“PWP”) P ower Cost Adjustment ( “PCA”) increase by 2 .5¢/kWh effective March 1, 2023 and adjustments thereafter. The monthly impact for an average electric residential customer using 500 kWh per month will be $14.00.
BACKGROUND:
Everyone is all too aware of the increase in the price of natural gas and its ef fect on the gas bills of every resident and business in the area. This increase unfortunately also impacts the regional wholesale price of electricity, as natural gas is a cost factor in the production of electric power across the region and wholesale pri ces in the California Independent System Operator (CAISO) area.
PWP will be increasing its electric e nergy rate to recover these market cost s for energy procurement. While regional natural gas prices are typically near $4/MMBtu, during the month of December 2022 prices climbed above $30 /MMBtu and continue to remain volatile. Although the increase in our customers’ cost of electricity will not spike in the same high proportion as that reflected in natural gas bills, it is important that we work to make our PWP electric customers aware of the upcoming billing increase.
To responsibly manage periodic spikes in energy costs, PWP must dynamically adjust the energy rate to reflect market conditions. PWP relies upon a variety of electrical generation resources using diverse fuel types to help manage energy market volatility, to include relying upon renewable generation resources within our energy portfolio. The overall management of the PWP electric generation fleet or portfolio has helped lessen the impact of natural gas volatility and wholesale electric prices.
Changes to the PCA will be reflected in the e nergy rate of the billing effective March 1, 2023. PWP has historically adjusted the PCA infrequently, however, due to heightened market price volatility, going forward t he PCA shall be calculated each month and any adjustments from the resulting values shall be automatically implemented on the first 5 PCA – Wholesale Energy Market Impacts February 28, 2023
day of the following month. If the energy market volatility and energy prices decrease to more traditional levels, the PCA will be revised downward accordingly over time, as has been demonstrated by PWP in prior years.
For customers who need assistance in paying their utility bills, PWP provides ongoing utility bill support programs to income- qualified customers through the EUAP (Electric Utility Assistance Program), CARES, CARES+ and LIHEAP (Low Income Home Energy Assistance Program) and LIHWAP (Low Income H ousehold Water Assistance Program). LIHEAP and LIHWAP are federally funded and administered independently by the Maravilla Foundation. More information on these programs can be found at PWPweb.com/BillAssistance.
6 Pasadena Water and Power
Pasadena Water and Power
Power Cost Adjustment – Wholesale
Energy Market Impacts
Municipal Services Committee
February 28, 2023
Item #1
Pasadena Water and Power
2 El Paso Pipeline Rupture
• In August 2021, the El Paso Natural Gas Pipeline (“EPNG”) from West Texas to California ruptured south of Coolidge, AZ • Prompted a full-scale National Transportation Safety Board (“NTSB”) investigation
• Natural gas flow restricted
• Pipeline rupture and other macro economic factors impacted natural gas prices
El Paso Pipeline Path and Affected Segment
7 Pasadena Water and Power
3 Gas Price Increases
SoCal City Gate Gas Prices by Year and Month ($/MMBtu)
Winter Storm Uri
Polar Vortex
Average Price ($/MMBtu)
Pasadena Water and Power
4 Energy Price Increases
Day Ahead Power Prices Comparison by Year and Month ($/MWh) Average Price ($/MWh)
8 Pasadena Water and Power
Power Cost Adjustment
• Ordinance Authorizes the General Manager of
Pasadena Water and Power (“PWP”) to:
> Implement changes to the energy services charge using a Power Cost Adjustment (“PCA”) rate mechanism (Section
13.04.173 of the Light and Power Rate Ordinance)
> A passthrough charge to recover energy costs
• PCA is compliant with Proposition 26
• The PCA is reflected in the energy rate of the billing • Shall be monitored and adjusted monthly
5 9
ITEM #2
10 P ASADENA WATER AND POWER
MEMORANDUM
February 28, 2023
To: Municipal Services Committee
From: Sidney Jackson
General Manager
Subject: Survey of Electric Bike Incentive Programs
This report is for information only.
The purpose of this report is to provide information regarding current incentive programs for electric bikes (“e-bikes”) throughout California and on the federal level.
At the federal level, the E-bike Act (HR 1019/S 2420) was introduced in the House of Representatives in February 2021, but the legislation has since stalled and is not expected to progress any further. Tax credits for the purchase of e-bikes was originally included as part of the Inflation Reduction Act of 2022 (HR 5376), but was later removed.
In California, Assembly Bill 117 passed by the state legislature and enables the Air Resources Board to launch a $13 million e-bike incentive program, with a tentative start date of Q1 of 2023. To qualify for the incentive program, participants’ household income is capped at 400% of the federal poverty level (FPL). Qualifying applicants can receive a voucher of up to $1,250 for a standard e-bike or up to $1,500 for a cargo/adaptive e-bike, bonus amounts may also apply to a lower FPL or residents living in disadvantaged communities (DAC). The program will support the purchase of class 1 and class 2 e- bikes only. Participants must purchase a e-bike from a California bike shop or online from a company with a business location in the state.
At the city and county level, there are two air quality management districts (South Coast & Bay Area) that provide grants of up to $7,500 for the purchase of an e-bike to replace a car, designed exclusively for income qualified customers living in eligible zip codes that are located in the DAC. Lastly, four cities, one county and one transportation management association (TMA) in northern California (Alameda, Healdsburg, Santa Clara, Redding, Contra Costa County, and Alameda TMA) currently provides up to $300 in base rebate for e-bikes, with bonus for income qualified residents.
In the local area, Active SGV, a local nonprofit focused on open streets and transit improvements, has partnered with the San Gabriel Valley Council of Governments on an e-bike rental program called “Go SGV” that is available for residents of the San Gabriel Valley, which includes the City of Pasadena. As part of the pre-qualification application, interested parties must be at least 18 years old and proof of residency in the SGV is also required. The program has two monthly pricing options, the classic commuter e-bike is 11 Electric Bike Incentive Programs
February 28, 2023
$79 per month and the e-cargo bike is $129 per month. There are also reduced rates for low-income residents. A classic e-bike would cost a low-income resident $29 per month and $99 per month for an e-cargo bike. The security deposits for low-income residents would also be 50% of the regular deposit. The classic commuter is available for long term rental while the e-cargo bike is available for periods of up to 2 months. Both options come equipped with a lock and charging cable.
In an effort to encourage sustainable mobility and further align with the goals outlined in the City’s climate action plan, Pasadena Water and Power (PWP) utilizes several established outreach channels to promote the Go SGV’s e-bike rental program to PWP customers and the city’s residents. A few examples of the utility’s outreach channels include, but are not limited to, newsletters, PWP website banners, social media channels and our presence at various local community events.
12 Pasadena Water and Power
Survey of Electric Bike Incentive Programs
Municipal Services Committee
February 28, 2023
Item #2
Pasadena Water and Power
E-bike Rebates
• Should PWP include
E-bike rebates along
with Electric Vehicle
Rebates/g34
• What is the purpose
of EV and EV
Charger rebates?
2 13
Pasadena Water and Power
Purpose of EV incentives
• CA Air Resource Board: Advanced Clean Cars II
> Regulation requires all new passenger cars, trucks, and SUVs sold in CA to be zero emissions by 2035 (EO-N-79-20) • Transportation sector is the largest polluter in CA
> Zero emissions vehicles are key to reducing GHG
emissions.
• Environmental Justice and Equity factors for both
EVs/EV charging infrastructure are a concern.
• Education and Public Outreach
> Explain EV benefits, despite current challenges in vehicle price and charging options.
3 Pasadena Water and Power
Public EV Charging
• Most convenient way to
charge an EV is at home
• Approx. 50% of families in
CA live in multi-family
dwellings, where home
charging is difficult and
costly to install
• Public EV charging will
be essential to having a
sustainable and reliable
EV charging network
4 14
Pasadena Water and Power
E-bike Considerations
• Would e-bikes have a significant value in
reducing GHG emissions when compared to
EVs replacing internal combustion engine
(ICE) vehicles/g34
• Would an e-bike replace an ICE vehicle or a
regular bike in a standard household/g34
• What other incentives for e-bikes are being
utilized in CA/g34
• Are barriers to e-bikes a mobility issue, cost
issue, or electrification issue/g34
5 Pasadena Water and Power
E-bike Incentives (Federal)
• HR1019/ S2420 (E-bike Act), Feb/Jul 2021: Stalled
> 30% tax credit, up to $1,500/taxpayer, max MSRP $8,000 > All three classes of e-bikes qualify for the tax credit > Limits: AGI of $75,000/yr. or $150,000/yr. if filing jointly • HR5376 (Build Back Better Act), Sept 2021: Eliminated > 30% tax credit, up to $900/taxpayer, max MSRP $4,000
> All three classes of e-bikes qualify for the tax credit > Limits: AGI of $75,000/yr. or $150,000/yr. if filing jointly > E-bike tax credit eliminated from the original Build Back Better Act
6 15
Pasadena Water and Power
E-bike Incentives (California)
• AB-117:Air Quality Improvement Program
> CA Air Resource Board administered voucher program
Anticipated launch in CY 2023
> $13M funding, estimated funding for 9,100 vouchers
Originally $10M funding, $3M added in Nov. 2022
> Proposed Requirement: Class 1/Class 2 e-bikes only
> CA bike shop/Online company w/ a business in CA
> Proposed Income Limits: 400% of Federal Poverty Level > Proposed Incentive Amounts:
Standard E-bike: $750-$1,250
Cargo/Adaptive E-bike: $1,500 or more
Bonus: Reside in DAC or income under 225% of
Federal Poverty Level
7 Pasadena Water and Power
E-bike Incentives (City/County)
Agency Program Details
City of Alameda Base Rebate is tiered, depending on purchase price, up to $300. Additional bonus for income qualified.
Alameda TMA Additional Rebate of $300, on top of City of Alameda’s rebate.
City of Healdsburg Base Rebate $300, bo nus for income qualified & buy local.
City of Santa Clara Base rebate is 10% of the purchase price, up to $300.
Additional bonus for income qualified.
City of Redding Standard rebate of $1,000, income-qualified only.
Contra Costa
County
Base Rebate $150, bonus for income qualified & residents of specific cities.
South Coast
AQMD (SCAQMD)
Replace car w/ voucher up to $7,500 for the purchase of an e-bike, income-qualified DAC customers only
Bay Area AQMD
(BAAQMD)
Replace car w/ voucher up to $7,500 for the purchase of an e-bike, income-qualified DAC customers only
8 Lease, Loans, Lending Library and/or Subscription e-bike programs are not included. 16 Pasadena Water and Power
E-bike Incentives (City/County)
Agency Program Details
Monterey Bay Air
Resources District
Standard rebate is $1,000, e-bike price range ($1,000-$4,000).
Rebate for income-qualified customers only, program closed.
Redwood Coast
Energy Authority
Base Rebate, up to $500, 50% of e-bike cost, program closed as of May 2020.
Peninsula Clean
Energy (San Mateo
County)
Standard rebate is 80% of the purchase price of a new e- bike, up to $1,000. Rebate for income-qualified customers only, program closed.
Sonoma Clean
Power (Sonoma
County)
Standard rebate is $1,000 off select e-bikes at local retailers, Rebate for income-qualified customers only, program closed.
Central Coast
Community Energy
Base rebate is 50% of the purchase price, up to $500.
Additional bonus for income-qualified, program closed.
City of Roseville Standard rebate is 50% of the purchase price of a new e- bike, up to $200, program closed.
9 Lease, Loans, Lending Library and/or
Subscription e-bike programs are not included.
Pasadena Water and Power
Go SGV: E-Bike Share Program
• Pre-Qualification Application
> 18 years old and above
> Resident of San Gabriel Valley w/ proof of residency
• Monthly Pricing Options:
> Classic Commuter: $79/month (long-term sharing OK)
Student ($49/month)
Low-Income ($29)
> E-Cargo/Family: $129/month (up to 2 months)
Low-Income ($99)
> Both models comes with a lock and charging cable
• Other Fees
> Refundable Deposit: Commuter - $250, E-Cargo - $500
> Low-Income (50% Deposit)
10 17
Pasadena Water and Power
Climate Action Plan Measures
11 Pasadena Water and Power
Summary
• Low Carbon Fuel Standard (LCFS) credits.
> LCFS base credits are issued to PWP for every highway-approved EV > LCFS incremental credits are issued to PWP based on energy delivered for EV Charging.
> Unlike Electric Vehicles (EVs), E-bikes do not qualify for LCFS. > E-bikes do not require costly infrastructure to charge. • GHG Emissions Reduction
> EV rebates are based on the assumption that EVs replace gas vehicles, E-bikes typically don’treplace cars, but may eliminate some local trips. > Determining rebate amounts based on minimal GHG reduction will be difficult, especially if e-bikes are only replacing regular bicycles or EVs. • PWP Electric Vehicle Rebates
> PWP EV rebates for new vehicles will sunset at the end of FY23, this change aligns with new federal/state guidelines & local POU rebates. • State (CARB) and local (Go SGV) e-bike programs
> City will benefit to leverage existing e-bike incentive programs available on the local and state level.
12 18
Pasadena Water and Power
Conclusion
• At this time, PWP staff does not recommend
adding a rebate for E-bikes.
• PWP recommends that both PWP and DoT
promote the GoSGV e-bike rental program to
residents.
• Bike and E-bike programs can be addressed
with further research in the next iteration of the
Climate Action Plan.
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