AGENDA
FINANCE COMMITTEE
REGULAR MEETING NOTICE
FEBRUARY 24, 2025
PUBLIC MEETING 4:00 P.M.
Members
Victor M. Gordo, Mayor
Tyron Hampton, District 1
Rick Cole, District 2
Gene Masuda, District 4
STAFF
Matthew Hawkesworth, Director of Finance
Arnold Lee, Chief 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, culture, and unique character.
In compliance with the Americans with Disabilities Act of 1990, Assistive Listeni ng Devices are available from the City Clerk’s Office wit h a 24-hour advance notice.
Please call (626) 744-4124 to request us e 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.
Mee
tings are broadcast live on cable Channel 3 and on the Internet a t 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).
It
ems on the 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/ Mat
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”
PUBLIC COMMENT AT THE FINANCE COMMITTEE MEETING FOR
FEBRUARY 24, 2025, AT 4:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
Li
nk to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
T
O VIEW A LIVE STREAM OF THE MEETING:
ht
tp://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.
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:
gac
[email protected]
C
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
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].
REGULAR MEETING
AGENDA
FINANCE COMMITTEE
F
EBRUARY 24, 2025
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING – 4:00 P.M.
ROLL CALL
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
Public comment will be limited to a total of 20 minutes at the beginning of the meeting and will continue at the conclusion of the meeting if necessary. Please limit comments to 3 minutes each.
APPROVAL OF MINUTES
February 10, 2025 Special Meeting
NEW BUSINESS
1. A
PPROVE AMENDMENTS TO FISCAL YEAR 2025 ADOPTED OPERATING BUDGET
INFORMATION ONLY
ADJOURN
APP
ROVAL OF MINUTES
• February 10, 2025 Special Meeting
01 02/10/25 Finance Committee
CITY OF PASADENA
FINANCE COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER S249
FEBRUARY 10, 2025
SPECIAL MEETING
OP
ENING Chair Gordo called the special meeting of the Finance Committee to order at 3:10 p.m.
ROLL C
ALL: Mayor Victor M. Gordo (Chair)
Councilmember Rick Cole
Councilmember Tyron Hampton (arrived at 3:25 p.m.)
Councilmember Gene Masuda
Staff: Miguel Márquez, City Manager
Matthew Hawkesworth, Acting Assistant City Manager/Director of Finance
Brenda Harvey-Williams, Assistant City Manger
Arnold Lee, Chief Assistant City Attorney
Phyllis Hallowell, Management Analyst V
David Reyes, Interim General Manager, Water and Power
Lynne Chaimowitz, Assistant General Manager, Water & Power Jenny Cristales-Cevallos, Deputy Director of Transportation Sebastian Hernandez, Principal Planner
Gloria Flores, Management Analyst III
Armine Trashian, Controller
Gloria Acevedo, Recording Secretary
AP
PROVAL OF MINUTES : It was moved by Councilmember Cole , seconded by Councilmember Masuda, to a pprove the minutes of the December 16, 2024, Special Finance Committee and the cancellation notices of December 23, 2024, January 13, 2025, and January 27, 2025 (Motion Unanimously carried) (Absent: Councilmember Hampton).
NEW
BUSINESS: AUTHORIZE THE CITY MANAGER TO EXTEND THE TERM OF CONTRACT 31,568 WITH TRC ENGINEERING SERVICES, LLC FOR
SIX MONTHS TO CONDUCT QUALITY CONTROL INSPECTIONS
FOR THE PASADENA TRANSIT AND PASADENA DIAL-A-RIDE
FLEET
Chair Gordo introduced the item and Matthew Hawkesworth, Acting Assistant City Manager/Director of Finance , introduced Jenny Cristales- Cevallos, Deputy Director of Transportation who responded to questions.
02 2/10/25 Finance Committee
Councilmember Cole requested clarification on whether a contract with the vendor is needed after six-months and on the actual cost of the audit.
Ms. Cristales-Cevallos responded that the need for these services is continuous. Mr. Hawkesworth clarified that the cost for each vehicle is $1,762, with three vehicles undergoing the audit, the total cost is $5,286, with $12,000 remaining in the contract.
It was moved by Councilmember Cole , seconded by Councilmember Masuda, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) ( Absent:
Councilmember Hampton)
INFORMATION ONLY: MITIGATION FEE ACT ANNUAL REPORTS Chair Gordo introduced the item and Matthew Hawkesworth, Acting Assistant City Manager/Director of Finance, responded to questions.
Councilmember Cole suggested to staff for future report presentations to highlight projects funded by the collection of these fees rather than stating the report is only to show compliance with the state law, as it is important for the public to understand how fees collected are spent by the City. In this instance, the collection of these funds allowed for the building of the Washington Park Community House among other projects that are valuable assets to residents.
Councilmember Masuda agreed with Councilmember Cole’s suggestion and reminded the Finance Committee that they can reach out to staff prior to the meeting with questions so that most questions are answered outside the meeting in consideration of the limited time of the meetings.
Chair Gordo also agreed with the suggestion to highlight projects; however, reminded the committee that it is equally important to share that the City is compliance with state law.
Miguel Má rquez, City Manager , pointed out that these meetings are slated to provide information to the public and suggested that perhaps finding a balance on agenda reports to show compliance, highlight projects, and provide clear actions is the best solution, given the high number of reports.
Following a discussion, on the order of the Chair and consensus of the Finance Committee, the item was received and filed.
03 2/10/25 Finance Committee
PRESENTATION ON THE FISCAL YEAR JUNE 30, 2024,FINANCIAL REPORTS (ITEM 5 OF THE CITY COUNCIL JANUARY 27, 2025,
AGENDA)
Chair Gordo introduced the item and Matthew Hawkesworth, Acting Assistant City Manager/Director of Finance introduced Armine Trashian, Controller, who provided a PowerPoint presentation and responded to questions.
Councilmember Cole inquired about the following:
• Significant difference between revenue growth compared to the expenditure growth; is the trend predicted to continue. Mr.
Hawkesworth provided an outline of the decrease in reven ue
funds from
governmental funds and the impact of reduced
property taxes, as well as sales taxes being flat compared to last year’s numbers.
• The Water and Power utility rate study at a time when net profits increased
by $78.9 million. Ms. Lynne Chaimowitz, Assistant
General Manager, Water & Power, explained future increases are needed to recover from the depletion of reserves for energy services during the increase in gas prices of 2022-2023. • T
he Rose Bowl Operating Company’s (RBOC) $5.7 million in net gain, while recording a net operating loss of $1.9 million last year, before
the debt service payment of $12 million. Mr. Hawkesworth will work with the RBOC for a detailed explanation.
• Increased operating loss reported by the Pasadena Center Operating Company (PCOC), while being s ubsidized with Transient
Occupancy Tax revenue. Mr. Hawkesworth will work
with the PCOC f
or a response.
• The RBOC and PCOC’s performance has an impact on the
General F
und; therefore, it is important to pay close attention. • Employee pension contributions for Safety, Classic, and Public Employees’ Pension Reform Act members an
d the City’s $600
million unfunded accrued liability.
• The creation of the Section 115 Trust and how it is funded. • Preparing for acute and chronic “shocks” in the economy based
on unprecedented events; important to protect citizens.
All bullets represent an opportunity to raise the public’s awareness on where the money collected by fees and taxes is used throughout the City.
Chair Gordo asked staff to prepare to discuss the City’s pension obligation before or after the Capital and Operating budget discussions.
Councilmember Masuda expressed concern about water rates increasing unexpectedly. Miguel Márquez, City Manager, stated he is working with his team to soften future rate increases by introducing them in a staggered manner rather than several in one year.
04 2/10/25 Finance Committee
Councilmember Hampton asked about projections from the impact to the City’s local economy , post the Eaton Canyon Fire. Mr. Hawkesworth shared that our tax consultant HdL is working on providing a revised forecast. Councilmember Hampton also stressed the importance of keeping dollars spent circulating in our local economy , as they are beneficial to our local businesses as well as the City in the form of tax revenues. Lastly, Councilmember Hampton asked that an agenda report return to the Finance Committee Meeting within 30-days to revisit the Annex buildings within the Hahamongna Watershed Park that was due back to the Committee late last year, he suggested local nonprofits can hire residents who lost their homes or jobs in the Eaton Fire to teach them a new career path, in this area.
Following a discussion, on the order of the Chair and consensus of the Finance Committee, the item was received and filed.
ADJOURNMENT: On the order of the Chair, the special meeting of the Finance Committee was adjourned at 4:32 p.m.
ATTE
ST: ______________________
Mayor Victor Gordo, Chair
Finance Committee
_______
_____________
Gloria Acevedo
Recording Secretary
NEW BUSINESS
ITEM 1
1. APPROVE AMENDMENTS TO FISCAL YEAR 2025
ADOPTED OPERATING BUDGET
Agenda Report
February 24, 2025
TO:
THROUGH:
FROM:
SUBJECT:
Honorable Mayor and City Council
Finance Committee
Department of Finance
APPROVE AMENDMENTS TO FISCAL YEAR 2025 ADOPTED
OPERA TING BUDGET
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the proposed action herein is not a "project" subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 21065 and within the meaning of Section 15378(b) and
2. Approve amending the Fiscal Year (FY) 2025 Adopted Operating Budget as detailed in the following report by a net amount of $4,345, 136.
BACKGROUND:
Throughout the fiscal year, budgetary adjustments are necessary to account for unanticipated changes to the adopted budget. These revenue and appropriation amendments are presented to the City Council for consideration. This agenda report includes proposed amendments to the FY 2025 Operating Budget as adopted by the City Council on June 10, 2024.
Proposed Budget Amendments
1. Budget Adjustments - The following adjustments are recommended to align the revenue and expenditure budgets:
a. General Fund Transfer to Other Housing Fund - The Housing Department recommends appropriating a transfer of $3,000,000 from the General Fund (101) to the Other Housing Fund (238) to fund the acquisition costs of 17 Caltrans homes previously approved by City Council. This transfer was inadvertently omitted from the FY 2025 Operating Budget. Any unexpended amount by the end of the fiscal year MEETING OF _____ _ AGENDA ITEM NO. ____ _