AGENDA
MUNICIPAL SERVICES COMMITTEE
REGULAR MEETING NOTICE
MAY 27, 2025
PUBLIC MEETING 4:00 P.M.
MEMBERS
Justin Jones, Chair, District 3
Rick Cole, Councilmember, District 2
Tyron Hampton, Councilmember, District 1
Jason Lyon, Councilmember, District 7
STAFF
David Reyes, General Manager
Lisa Hosey, Assistant City Attorney
Betty Gao, 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 MAY 27, 2025, 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:
ci
[email protected]
Cor
respondence 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
MAY 27, 2025
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, May 27, 2025, at 4:00 p.m., to discuss matters on the attached agenda.
Justin Jones, Chair
Municipal Services Committee
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 May 22, 2025, 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.
REGULAR MEETING AGENDA
MUNICIPAL SERVICES COMMITTEE
MAY 27, 2025
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
APPROVAL OF MINUTES
1. BUDGE
T WORKSHOP – FY 2026 RECOMMENDED OPERATING BUDGET
a. WATER AND POWER DEPARTMENT
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
INFORMATION ONLY
ADJOURN
NEW BUSINESS
1 Water and Power Department
FY 2026 Recommended
Operating Budget
Municipal Services Committee
May 23, 2025
2 Pasadena Water and Power
Department-Wide Key Initiatives
2 Strategic Planning
> Long-term Financial
Planning for Sustainability
> Enterprise Asset
Management System
> Advanced Metering
Infrastructure
> Customer Engagement
Power Priorities
> Optimized Strategic Plan
Implementation and
Programs
> Sub-transmission upgrades
> Distribution system
hardening to mitigate risk
> EV Operations &
Maintenance
> Electric Rate Study
Water Priorities
> Water supply
diversification &
enhancement
> Sunset Reservoir
> Mainline replacements
> Water Conservation
Efforts
3 Pasadena Water and Power
Strategies to KEEP Rates Affordable
3 Rates
Debt
Funding
Grant
Funding
Control
Costs
Long-term financial
planning for stability
Foundational
policies to
support good
governance
Use
technology
for revenue
capture and
a better
customer
experience
Keep costs as
low as
possible
Manage
volatility by
using
available
financial tools
& muni tax
advantages
4 Pasadena Water and Power
FY 2026
Recommended
Operating Budget
4 Power Fund
5 Pasadena Water and Power
FY 2025 Accomplishments – Power Fund
5 Executed power purchase agreements with Grace Orchard Solar Facility and Calwind Resources Inc.
Received two in-kind grant awards with ENERGYWERX;
Executed a grant agreement with APPA for a microwind pilot project Maintained APPA’s prestigious RP3® “Diamond” designation; Awarded APPA’s Safety Awards of Excellence “Gold” designation Expeditiously repaired damages caused by
Eaton Fire and Windstorm restoring power within days
Maintained regulatory compliance with CARB, CEC, CAISO, AQMD, EPA, WECC, and applicable NERC standards and requirements Launched the new MyPWP mobile app, providing a one-stop solution for managing utility services
6 Pasadena Water and Power
FY 2026 Outlook – Power Fund
6 Elimination of coal at Intermountain Power Plant
Operations
• Sales volume remains flat
• Projected retail increase resulting from the rate study (Jan. 2026)
• Cap and trade decrease
Retail Sales
• Charter mandated General Fund Transfer
• Increasing non-discretionary personnel costs (PERS/ Benefits) • Operating costs for electric vehicle infrastructure
• Warehousing for increased capital projects
Revenue Requirements
7 Pasadena Water and Power
Appropriations by Category –
Power Fund
7 8
Pasadena Water and Power
8 Overview of Power Fund
Power Fund
(In thousands)
FY 2026
Recommended
FY 2027
Forecast
FY 2028
Forecast
FY 2029
Forecast
FY 2030
Forecast
FY 2031
Forecast
Beginning Fund Balance $740,752 754,714 775,059 837,246 861,705 892,080 Net Income 13,962 20,345 62,187 24,459 30,375 43,978 Ending Fund Balance $754,714 775,059 837,246 861,705 892,080 936,058 Working Capital
Beg. Working Capital Balance $396,832 301,622 328,712 299,441 273,359 274,309 Net Change in Working Capital (95,210) 27,090 (29,271) (26,082) 950 14,497 Ending Working Capital Balance $301,622 328,712 299,441 273,359 274,309 288,806 Target Working Capital Reserves $360,561 359,728 367,172 328,914 317,169 322,559 Minimum Working Capital Reserves $302,810 301,175 309,753 270,369 257,828 262,329 *
* Working capital reserve minimum and target amounts are proposed 9 Pasadena Water and Power
Significant Changes from FY 2025 Budget
– Power Fund Revenue
9 10
Pasadena Water and Power
Significant Changes from FY 2025 Budget
– Power Fund Expense
10 11
Pasadena Water and Power
FY 2026 Recommended
Operating Budget
11 Water Fund
12 Pasadena Water and Power
FY 2025 Accomplishments – Water Fund
12 Continued management of Unidirectional Flushing Program to conserve approx. 1.5M gallons of drinking water
Response to Eaton Fire assessing and repairing critical water structures to maintain water quality
Partnered with California Water Efficiency Partnership and SoCalGas to host a water efficiency workshop for hospitality industry professions Offered Turf removal rebate program for drought tolerant landscaping; Launched a partnership with TreePeople to rebate for Native Garden Kits Actively participated in legislative initiatives and policy issues; Completed regulatory requirements and various water quality compliance reports 13 Pasadena Water and Power
FY 2026 Outlook – Water Fund
13 • Sales volume increased 5.6%
• Rate adjustment #2 of 11%
Retail Sales
• Increase costs for purchased water
• Overall supply cost increases and Eaton Fire
recovery costs
• Increasing non-discretionary personnel costs
(PERS/ Benefits)
• Infrastructure investment (Sunset Reservoir
Complex, Arroyo Seco Canyon, AMI and EAM)
Revenue Requirements
14 Pasadena Water and Power
Appropriations by Category –
Water Fund
14 15
Pasadena Water and Power
15 Overview of Water Fund
Water Fund
(In thousands)
FY 2026
Recommended
FY 2027
Forecast
FY 2028
Forecast
FY 2029
Forecast
FY 2030
Forecast
FY 2031
Forecast
Beginning Fund Balance $236,902 259,843 284,524 315,915 360,219 400,532 Net Income 22,941 24,681 31,391 44,304 40,313 33,351
Ending Fund Balance $259,843 284,524 315,915 360,219 400,532 433,883 Working Capital
Beg. Working Capital Balance $53,112 52,464 57,540 56,052 76,756 80,731 Net Change in Working Capital (648) 5,076 (1,488) 20,704 3,975 (18,835) Ending Working Capital Balance $52,464 57,540 56,052 76,756 80,731 61,896 16 Pasadena Water and Power
Significant Changes from FY 2025 Budget –
Water Fund Revenue
16 Revenues (in millions) - Net increase of $15.6 million JPL VOC Reimbursements ($0.2) Reta il Revenues $12.5
Grant Revenues $2.0
Other Contributions-Private $0.5
Investment Earnings $0.5
Services to Other Funds $0.2
Rental and Other Revenues $0.1
Total Decrease ($0.2) Tot al Increases $15.8
Decrease Increases
17 Pasadena Water and Power
Significant Changes from FY 2025 Budget –
Water Fund Expense
17 Expenses (in millions) - Net increase of $10.0 million Debt Services ($0.1) Wat er $4.9
Materials, Tools & Supplies $1.3
Personnel $1.1
Depreciation $1.0
Utilities and Other Operating Expenses $0.9
Rent and Lease $0.4
Contract, Consultant & Legal Services $0.3
Abatement and Internal Service Charges $0.2
Total Decrease ($0.1) Tot al Increases $10.1
Decrease Increases
18 Pasadena Water and Power
Enhancement Requests – Electric
Revenue
• Projected revenue
requir
ement rate increase of
$7.6 million*
• Target effective date January
1, 2026 (
pending City Council
approval)
• *Primarily driven by capital
revenue
requirement, all
subject to rate Study
18 19
Pasadena Water and Power
Enhancements– Public Benefits
• Income Qualified No or Low-
Int
erest Solar + Storage Loan
Program- $3,000,000
> Pilot program to reduce barriers to income
qua
lified single-family residential customers
to install solar and energy storage. Program
will partner with financial institutions to
reduce upfront cost barriers for low-income
homeowners to install solar and battery
systems.
• Energy Storage Rebate Program
- $850,000
> Rebate program for residential and
comm
ercial battery storage to enhance
energy resilience and reduce peak
demand. This program complements existing
renewable energy efforts and helps
customers manage energy use more
effectively.
19 20
Pasadena Water and Power
Staffing Needs
418 417 419 419 419 419 430 442
6 4
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
# OF EMPLOYEES Permanent Limited-term
Impact: $1.7M (Capital and Operating)
20 FY26 FTE REQUEST OF 12
PWP uses other staffing strategies such as MASH. With 13 employed this year and 25 hired full time in past five years.
21 Pasadena Water and Power
Position Requests
External Affairs (3)
Impact $390,031:
(1) Public Information
Coordinator
(1) Senior Customer
Program Analyst
(PBC funded)
(1) Customer
Program Analyst
(PBC funded
)
Customer Service &
Technology (5)
Impact $696,592:
(2) Customer Service
Specialists (limited-
term)
(2) Senior Application
Developers
(1) Senior Systems
Engineer/Administrator
Power (3)
Impact: $440,251
(1) Electrical Engineer
(2) Power Plant
Mechanic Helper
(Power Supply)
Water (1)
Impact: $179,064
(1) Capital Project
Manager
21 22
Pasadena Water and Power
22 Comments and
Questions
23