AGENDA
MUNICIPAL SERVICES COMMITTEE
REGULAR MEETING NOTICE
JULY 9, 2024
PUBLIC MEETING 4:00 P.M.
MEMBERS
Felicia Williams, Chair, District 2
Tyron Hampton, Councilmember, District 1
Justin Jones, Councilmember, District 3
Jason Lyon, Councilmember, District 7
STAFF
David Reyes, Acting General Manager
Lisa Hosey, Assistant City Attorney
Jerice Kenebrew, 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.
Habrá servicio de interpretación disponible para éstas juntas llamando al (626) 744-4124 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://ww5.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”.
PUBLIC COMMENT AT THE MUNICIPAL SERVICES COMMITTEE MEETING FOR JULY 9, 2024, AT 4:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
Link to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
TO VIEW A LIVE STREAM OF THE MEETING:
http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND
WWW.PASADENAMEDIA.ORG
In order to facilitate public participation at meetings the City will accept public comment in the following manner:
1. Whether participating in-person or virtually at the meeting, members of the public may provide 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/
If a public comment speaker wishes to speak on more than one agenda item, please indicate which items on the online form (multiple item speakers will be handled according to the process posted on the agenda and as specified in the City meeting policy). Public comments are limited to 3 minutes each, and the Chair and Committee may limit this time if reasonable under the circumstances.
2. In-person Meeting Participation: Complete an online speaker card at the following website: www.cityofpasadena.net/commissions/public-comment/ After submitting a public speaker card, members of the public may attend the meeting in-person by coming to the Pasadena City Council Chamber, Room S249 at City Hall at the date and start-time of the posted meeting.
Virtual Meeting Participation: For virtual participants, you may attend by connecting to the meeting using a computer, other electronic device, or by telephone. Please review the agenda to identify the published start time for the meeting and connect to the meeting just prior to, or at the start of the meeting.
To participate in public comment for an item and to be recognized to speak, it is required that the speaker login to the meeting using the same name or telephone number used on the Speaker Card form. This will allow City staff to locate and promote the speaker into the meeting when it is time for their public comment.
Participants’ phone calls to the Committee meeting will be recorded as part of the Committee meeting. By staying on the line and making public comment during the Committee meeting by phone, you are agreeing to have your phone call recorded. Following is the connectivity information for virtual participation:
Computer or electronic devices, join the meeting at: cityofpasadena.net/cczoom Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446
3. Speaker Card Help Line: If a public comment speaker needs assistance in completing a speaker card, please call the City Clerk’s Office at: (626) 744-4124. The help line will open 30 minutes prior to the posted start time of the meeting.
4. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:
Correspondence 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,
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].
CITY OF PASADENA
REGULAR MEETING OF
THE MUNICIPAL SERVICES COMMITTEE
JULY 9, 2024
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, July 9, 2024, 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 July 3, 2024, by 6:00 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.
REGULAR MEETING AGENDA
MUNICIPAL SERVICES COMMITTEE
JULY 9, 2024
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
APPROVAL OF MINUTES
May 28, 2024 (Regular Meeting)
June 11, 2024 (Regular Meeting)
1. ENERGY & CREDIT RISK POLICY FOR THE WATER AND POWER DEPARTMENT
2. WATER AND POWER CLEAN ENERGY TRACKER
3. WATER AND POWER 2024 SUPPLY CHAIN DISRUPTIONS
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
INFORMATION ONLY
ADJOURN
NEW BUSINESS
1 01 05/ 28/2024
CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
MAY 28, 2024
MEETING
OPENING The Chair called the meeting of the Municipal Services Committee to order at 4:03 p.m.
ROLL CALL:
Staff:
Councilmember Felicia Williams, Chair
Councilmember Tyron Hampton
Councilmember Justin Jones (Absent)
Councilmember Jason Lyon
David Reyes, Acting General Manager of Water and Power
Tony Olmos, Director of Public Works
Joaquin Siques, Director of Transportation
Dulce Gomez, Assistant Parking Manager of Transportation Lisa Hosey, Assistant City Attorney
Jerice Kenebrew, Recording Secretary
PUBLIC COMMENT No one appeared for public comment on matters not on the agenda.
NEW BUSINESS BUDGET WORKSHOP – FY 2025 RECOMMENDED OPERATING BUDGET
a) PUBLIC WORKS DEPARTMENT
Tony Olmos , Director of Public Works , presented a PowerPoint presentation on the item, including information on the department’s Fiscal Year (FY) 2024 accomplishments, FY 2025 Annual Work Plan, appropriations, and FY 2025 enhancement requests, and responded to questions.
Councilmember Hampton advocated for staff to plant native trees when working on the Area H Tree Planting project at the Rose Bowl. In addition, he asked staff to repair the roadway lights system at Pasadena Unified School District school crossings, specifically at Octavia E. Butler Middle School campus, Hamilton Elementary School, and Madison Elementary School.
Joaquin Siques, Director of Transportation, provided information on the City’s roadway lighting system, and responded to questions.
On the order of the Chair, and by consensus of the Committee, the information was received and filed.
PROPOSED MODIFICATION TO TITLE 10 (VEHICLES AND TRAFFIC)
OF THE PASADENA MUNICIPAL CODE TO PROVIDE LANGUAGE
CLARIFICATION AND ADMINISTRATIVE UPDATES TO PARKING
SECTIONS 10.40 THROUGH 10.44
2 02 05/ 28/2024
Joaquin Siques, Director of Transportation provided introductory comments and Dulce Gomez, Assistant Parking Manger of
Transportation, presented a PowerPoint presentation on the item and responded to questions.
Chair Williams asked staff to upgrade the City’s online parking permit process t o allow residents to request parking permits for RV’s and annual parking permits.
Following discussion, it was moved by Councilmember Hampton seconded by Councilmember Lyon, to approve the staff
recommendation, and forward the item to the City Council for further consideration. (Motion unanimously carried) (Absent: Councilmember Jones)
ADJOURNMENT On the order of the Chair, the meeting of the Municip al Services Committee was adjourned at 5:00 p.m.
ATTEST:
____________________
Jerice Kenebrew
Recording Secretary
__________________________
Councilmember Felicia Williams, Chair
Municipal Services Committee
3 01 06/11/2024
CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
JUNE 11, 2024
MEETING
OPENING The Chair called the meeting of the Municipal Services Committee to order at 4:27 p.m.
ROLL CALL:
Staff:
Councilmember Felicia Williams, Chair
Councilmember Tyron Hampton
Councilmember Justin Jones
Councilmember Jason Lyon (Absent)
David Reyes, Acting General Manager of Water and Power
Kelly Nguyen, Assistant General Manager of Water and Power Jeremy Marquette, Assistant General Manager of Customer Service and Technology with Water and Power
Lisa Hosey, Assistant City Attorney
Jerice Kenebrew, Recording Secretary
PUBLIC COMMENT Anne LaForti, Pasadena resident, spoke against artificial turf installation in the City and emphasized the need to prioritize sustainable choices in place of artificial turf.
In response to public comment, Chair Williams stated that staff is preparing reports related to artificial turf which will be presented to the Environmental Advisory Committee (EAC) and Parks and Recreation Commission (PRC) for discussion.
APPROVAL OF MINUTES It was moved by Councilmember Hampton, seconded by Councilmember Jones, to approve the minutes of April 23, 2024, and May 14 , 202 4, as submitted. ( Motion unanimously carried ) (Absent:
Councilmember Lyon)
NEW BUSINESS AUTHORIZE THE CITY MANAGER TO ENTER INTO A POWER PURCHASE AGREEMENT (“CONTRACT”) WITH CALWIND
RESOURCES, INCORPORATED FOR RENEWABLE WIND ENERGY
FOR AN AMOUNT NOT-TO-EXCEED $47,100,000 FOR THE WATER
AND POWER DEPARTMENT
David Reyes, Acting General Manager of Water and Power , provided introductory comments, and Kelly Nguyen, Assistant General Manager with Water and Power, summarized the agenda report as part of her PowerPoint presentation and responded to questions.
Sam Berndt, representing Pasadena 100, spoke in support of the staff recommendation.
4 02 06/11/2024
Jerice Kenebrew, Recording Secretary, reported that five letters providing comments on the matter were received by the City Clerk’s office, distributed to the Committee, posted online, and made part of the record.
Following discussion, it was moved by Councilmember Jones seconded by Councilmember Hampton, to approve the staff recommendation, and forward the item to the City Council for further consideration. (Motion unanimously carried) (Absent: Councilmember Lyon)
AUTHORIZE THE CITY MANAGER TO ENTER INTO AN ENERGY
STORAGE CONTRACT WITH GLENARM BESS, LLC A SPECIAL
PURPOSE ENTITY CREATED BY EPC ENERGY INC. FOR
BATTERY ENERGY STORAGE FOR AN AMOUNT NOT TO EXCEED
$55,310,000 FOR THE WATER AND POWER DEPARTMENT
Kelly N guyen, Assistant General Manager - Water and Power, summarized the agenda report as part of her PowerPoint presentation, and responded to questions.
David Reyes Acting General Manager - Water and Power, and Art Silva, Power Plant Manager - Water and Power, responded to questions related to the Pasadena’s progress towards 100 percent carbon -free electricity by the year 20 30, and the procurement and storage of batteries.
The Committee thanked Water and Power staff for their excellent work on the item.
Councilmember Hampton asked staff to consider using a press release to ensure the community is aware of the project; and
Jerice Kenebrew, Recording Secretary , reported that five correspondence in support of the staff recommendation were received by the City Clerk’s office, distributed to the Committee , posted online, and made part of the record.
Sam Berndt, representing Pasadena 100, spoke on the generation of solar energy and in support of the staff recommendation.
Following discussion, it was moved by Councilmember Hampton seconded by Councilmember Lyon , to approve the staff
recommendation, and forward the item to the City Council for further consideration. (Motion unanimously carried ) (Absent: Councilmember Lyon)
INFORMATIONN ONLY PASADENA WATER AND POWER CREDIT AND COLLECTIONS
UPDATE ON RESIDENTIAL AND COMMERCIAL ACCOUNTS
David Reyes Acting General Manager - Water and Power provided introductory comments and Jeremy Marquette, Assistant General Manager – Water and Power, presented a PowerPoint presentation on the item, and responded to questions.
5 03 06/11/2024
Sam Berndt, Pasadena resident, advocated for the City to develop a strategic method to systemically resolve utility debt in the City.
Councilmember Hampton asked staff to provide data on the arrearage debt balance of 2.2 million dollars sorted by commercial and residential customers, and by multifamily and single family accounts. He also asked staff to provide information on the grants staff will apply for to assist with the arrearages.
Councilmembers Hampton and Jones suggested that staff work with private businesses/organizations within the City to develop a foundation to assist Pasadena low-income residents with their utility bills.
Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
ADJOURNMENT On the order of the Chair, the meeting of the Municipal Services Committee was adjourned at 5:28 p.m.
ATTEST:
____________________
Jerice Kenebrew
Recording Secretary
__________________________
Councilmember Felicia Williams, Chair
Municipal Services Committee
6 ITEM #1
7 PASADENA WATER AND POWER
MEMORANDUM
July 9, 2024
To: Municipal Services Committee
From: David M. Reyes
General Manager
Subject: Water and Power Clean Energy Tracker
This memorandum provides a status update on the metrics dashboard named the PWP Clean Energy Tracker that incorporates the Department of Water and Power’s (“PWPs”) commitment to meeting the goals of Resolution 9977, which was approved by the City Council on January 30, 2023, and sets a goal to source 100% of Pasadena’s electricity from carbon-free sources by 2030 while optimizing for affordability, rate equity, stability, and reliability of electricity. The resolution, which has been incorporated in PWP’s 2023 Integrated Resource Plan, accelerates California’s clean energy targets by 15 years and demonstrates an ambitious approach to achieving Pasadena’s carbon-free future.
BACKGROUND:
The presentation will provide information to the Municipal Services Committee about progress made in the development of a web-based Clean Energy Tracker. The new Clean Energy Tracker will provide progress information on key targets and milestones to meet state and local decarbonization requirements, such as:
(1) Compliance with Senate Bill’s 100 and 1020 and the Renewables Portfolio Standard;
(2) Progress toward achieving carbon-free goals of Resolution 9977; (3) Progress on Distributed Energy Resources and Electric Vehicles; and (4) Additional Decarbonization Efforts.
PWP will continue to enhance the Clean Energy Tracker in phases and will develop innovative ways to communicate PWP’s progress with mandated clean energy goals.
The PWP Clean Energy Tracker will be available on PWP home page at https://pwp.cityofpasadena.net/.
8 ITEM #2
9 PASADENA WATER AND POWER
MEMORANDUM
July 9, 2024
To: Municipal Services Committee
From: David M. Reyes
Acting General Manager
Subject: ENERGY & CREDIT RISK POLICY FOR THE WATER AND POWER
DEPARTMENT
This informational item provides an update regarding the Pasadena Water and Power (“PWP”) Energy and Credit Risk Management Policy.
BACKGROUND:
PWP’s current Energy and Credit Risk Management Policy (“ Risk Policy”) was last adopted in 2018. The Risk Policy was set to implement best energy risk practices by setting energy risk limits and limiting exposure amounts within certain tolerance levels in the operation of energy procurement. Furthermore, the Risk Policy also addresses the need for monitoring and reporting of energy procurement activities given the highly volatile nature of markets in both natural gas and wholesale power .
SUMMARY:
PWP’s Risk Policy objectives are to provide stable retail electric rates to retail customers and provide competitive rates by optimizing the energy procurement portfolio. These goals are reached by setting limits that will reduce our exposure to unexpected costs to be within an acceptable range, and additionally, by seeking the best available price when procuring energy to meet customer forecas ted demand fulfills a goal objective of procuring energy resources at competitive rates.
The Risk Policy as it stands today is sectioned into seven (7) areas each addressing the current established risk framework for PWP’s Power Supply activities. The first being the importance of our departmental goals of providing superior customer service, and reliable electricity at competitive rates to all its customers i n an environmentally sustainable manner. In identifying PWP’s departmental goals and their attainment thereof, the known 10 Energy & Credit Risk Policy
July 9, 2024
and unknown risks associated in conducting day -to-day business operations require a methodological approach to identify, quantify, and report in a timely manner .
The Risk Policy implements appropriate structured controls and policies revolving around clearly defined segregation of duties and delegation of authority, risk management controls, risk structure and parameters, risk limit s, and the appropriate risk reporting mechanisms in place to communicate to management the underlying risk at a given point in time. Also, the Risk Policy defines the permitted transaction products and types as further defined in the corresponding adopted resolutions (see attachment A). The scope of the Risk policy is only related to activities in PWP’s power supply portfolio. Other risks that may warrant further review such as general business risks consisting of fire, accident, general liability , and addressing risk of catastrophic failure, environmental or regulatory exposures are not in the scope of the Risk Policy.
In line with the Risk P olicy objectives of providing stable and competitive retail electric rates, there exists financial risk when procuring and optimizing the power supply portfolio.
The possibility of financial losses in relation to our energy reserve funds is limited and should not be exceeded. Appropriate load forecasting and contracted resource availability will help mitigate our exposure and reduce potential financial losses within policy thresholds. One of the core aspects of the Risk Policy is defining the allowed transactions and their corresponding transactional limits. Only approved transact ion types, enabling agreements, transaction executing authorities with their respective term, and lead times are permitted when executing energy transactions. Of importance, speculative transactions are not permitted per Risk Policy and only transactions related to serving our load requirements as has been emphasized.
Through specifically assigned roles and responsibilities, the implementation and effectivenes s of the Risk Policy is governed by active staff participation. The Energy and Credit Risk Management Committee (“RMC”) resides within PWP’s department and provides recommendations and updates as to the effectiveness of the Risk Policy to the City’s Municipal Services Committee. Through this interaction, the appropriate recommendation to City Council is presented on pertinent risk management framework topics, improvements, and other matters related to the energy portfolio risk management activities. Internally, the segregation of duties at PWP’s Power Supply Business Unit and Finance and Administration Business Unit can be described as The Front, Middle, and Back Offices. Each functions independently of the other whereas the Middle and Back Offices provide oversight of the risks of energy transactions conducted by the Front Office.
PWP’s risk reports related to energy procurement activities are reported monthly to the RMC along with timely updates on findings and recommendations to the PWP’s General Manager. Furthermore, economic conflict of interest reviews through Form 700 Disclosures are conducted by the Energy and Credit Risk Manager with legal assistance from the City Attorney’s office periodically for any actual or potential conflict of interest .
The results of such review are compiled with a report back to RMC with issues, concerns and/or remediation action. In addition to the required Form 700 and Employee 11 Energy & Credit Risk Policy
July 9, 2024
Qualifications and Code of Conduct timely and yearly form submissions, relevant PWP staff active in energy procurement activities receive FERC Anti -Market Manipulation training annually to ensure compliance with regulatory requirements .
Overall, PWP promotes and fosters a culture of risk awareness surrounding energy procurement activities and strives to limit our financial exposure related to the inherent risk in the operation of the City of Pasadena utility.
CONCLUSION:
This presentation meets the requirement to update the Municipal Services Committee semi-annually . The Risk Policy is currently planned for an additional update to reflect recent City Council direction.
Attachment A: List of Council Approved Resolutions to Contract for Energy Products
12 Attachment A
13 ITEM #3
14 P ASAD EN A W AT ER A N D PO W ER
MEMORANDUM
July 9, 2024
To: Municipal Services Committee
From: David M. Reyes
Interim General Manager
Subject: Supply Chain Disruptions
This memorandum is for information only.
BACKGROUND:
The attached presentation provides information to the Municipal Services Committee about the supply chain issues Pasadena Water and Power has been experiencing.
Attachment: PowerPoint presentation
cc: file
15 Pasadena Water and Power
WATER AND POWER
2024
SUPPLY CHAIN DISRUPTIONS
Water and Power
July 9, 2024
Informational Item 3
16 Pasadena Water and Power
Objectives
• Comprehensive overview of the persistent
supply chain challenges facing the utility
• Analyze the factors contributing to these
disruptions
• Present strategic solutions to mitigate their
impact on operations and project
timelines
2 17
Pasadena Water and Power
Persistent Supply Chain Disruptions
• Global Manufacturing Disruption
• Increased Material Costs
• Extended Lead Times
• Stock Replenishment
• Prioritization of Large Orders
• Smaller Orders Delayed
• Environmental Regulation Impact
3 18
Pasadena Water and Power
Power: Wooden Utility Poles
• Environmental Regulations:
> New environmental regulation changed the allowed wooden pole treatment • Wildfire Mitigation:
> California’s efforts to mitigate wildfire risks have increased the demand for utility poles and related components
• Prices have increased 26% to150% in some instances
> Raw materials and transportation costs have risen, leading to higher overall costs for utility poles
• Lead times Increased from 6-8 weeks to 30-36 weeks
• Overall Major Risk:
> Voltage conversion project delays
• Mitigating Strategies:
> Refrain from using O&M stock until project specific
orders arrive
> Increased order frequency
> Building short-term extra storage capacity at TMG
> Investigating alternative poles and preservatives
4 19
Pasadena Water and Power
Power: Transformers
• Production Capacity Reached:
> Manufacturers are operating at full capacity
> Large utilities are placing substantial orders to replenish their stock • Manufacturers’ Reluctance for Long-Term Fixed-Price Contracts • Prices have increased by 100% to 500%
• Lead times Increased from 3-6 months to 18-36 months
• Overall Major Risk:
> Voltage conversion project delays
> Planned and emergency replacements
• Mitigating Strategies:
> One-time purchase contracts
> New overseas contract for overhead transformers
> Increase inventory levels to maintain a two-year supply > Refurbish used transformers where possible.
5 20
Pasadena Water and Power
Power: Switches
• Regulatory Impact:
> Demand is affected by the impending ban on Sulfur
Hexafluoride (SF6) gas by 2025
• Prices have increased by over 37% in some cases
• Lead times increased from 3-6 months to 7-9 months
• Major Risks:
> Delays in planned system expansion and
replacement projects
> Substation Switch failures
• Mitigating Strategies:
> Increase inventory levels
> Maintain a two-year supply of critical units
6 21
Pasadena Water and Power
Power: Cables
• Prices have increased by approximately 50% in some cases • Lead times have increased from 4-6 months to 12-14 months. • Major Risks:
> Delays in planned cable replacement
projects
> Extended replacement timelines for failed
cables
> Recent accelerated rate of cable failures
causing loss of critical line redundancies
• Mitigating Strategies:
> Increase inventory levels, wherever possible.
> Reaching out to all available manufacturers and
suppliers to replenish emergency stock levels
7 22
Pasadena Water and Power
Water: Critical Electrical Equipment
• Experiencing long delays in the fabrication and
delivery of motor control centers, pump motors,
and emergency generators and manual transfer
switches (“tap boxes”)
• Equipment necessary for safely operating drinking
water wells, booster pump stations, and preparing
for emergencies
• Increased lead times from 3-4 months to 9-18 months
• Overall Major Risk – Disruption in water delivery
8 23
Pasadena Water and Power
Water: Disinfectant
• Chlorine gas and liquid sodium hypochlorite
are used to disinfectant drinking water
• Pricing was relatively stable prior to covid
• Closures of manufacturing plants, increased
demand for disinfectant due to covid &
potential railroad strike in 2022
• Increased pricing for chlorine gas by 27%
• Overall Major Risk – Increased purchases of imported MWD water or paying premium market prices for disinfectant
9 24
Pasadena Water and Power
Water: Pipeline & Appurtenances
• Maintaining the water distribution systems requires
large diameter pipes (6” to 12”), mechanical fittings,
valves, meters, and other construction related
materials
• Increased prices for commodities and fuel led to
higher prices for materials & change in purchasing
behavior (e.g. stocking inventory) which added to
the supply chain threat
• Delivery lead time increased from 2 to 6 months
• Prices increased by 5% to 30% depending on
material
• Overall Major Risk – Potential delay in new services
for customers
10 25
Pasadena Water and Power
Summary of Challenges & Risks
• Increased lead times and costs
• Inventory Shortages
> Less capacity to stockpile critical components
• Potential delays in executing planned
projects
• Potential delays in replacement of failing
equipment:
> Increased outage restoration times
> Loss of critical asset redundancies
• Loss of productivity
11 26
Pasadena Water and Power
Summary Key Mitigation Strategies
• Diversification of Supply Sources
> Identifying and partnering with multiple suppliers
• Investment in Inventory
> Building strategic reserves of critical components
> Substituting available equipment when possible
• Enhanced Forecasting and Planning
> Using data analytics to predict and manage
supply chain disruptions
12 27
Pasadena Water and Power
Questions?
13 28