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Ordinance Fact Sheet
TO:
FROM:
SUBJECT:
CITY COUNCIL
CITY ATTORNEY
DATE: June 2, 2025
MUNICIPAL CODE AMENDMENTS TO REMOVE STRANDED
INVESTMENT CHARGE AND RESERVES AND INCLUDE A RESERVE
FOR WORKING CAPITAL
TITLE OF PROPOSED ORDINANCE
AN ORDINANCE OF THE CITY OF PASADENA, CALIFORNIA, AMENDING PASADENA MUNICIPAL CODE CHAPTER 13.04 TO REMOVE STRANDED
INVESTMENT CHARGE AND RESERVES AND INCLUDE A RESERVE FOR
WORKING CAPITAL
PURPOSE OF ORDINANCE
As directed by the City Council on February 24, 2025, this ordinance implements and codifies modifications to the Pasadena Municipal Code ("PMC") that impact the Light and Power Fund's reserves in order to dissolve a narrowly focused Stranded Investment Resen/e and to adopt a Reserve for Working Capital.
REASON WHY LEGISLATION IS NEEDED
Pasadena Water and Power ("PWP") recommends streamlining PMC sections that impact the Light and Power Fund's reserves to create a Reserve for Working Capital, which will ensure exceptional credit worthiness and resilience to unforeseen circumstances.
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED
Pasadena Water and Power will implement, and Department of Finance will assist in the administration of, the proposed ordinance.
WCQRGSMYOD33A2
06/09/2025
MEETING OF 06^02^-20-2-5-
AGENDA ITEM NO.--1-6-- 14
FISCAL IMPACT
There is no fiscal impact associated with the adoption of the proposed PMC revisions.
ENVIRONMENTAL DETERMINATION
On February 24, 2025, the City Council found that the proposed PMC amendments are exempt from the California Environmental Quality Act ("CEQA"), which excludes from environmental review actions that are not "projects" as defined by California Public Resources Code ("PRC") Section 21065 and within the meaning ofCEQA Guidelines Section 15378(b). PRC Section 21065 and CEQA Guidelines Section 15378(b) define a project as an action which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
CEQA Guidelines Section 15378 excludes from the definition of "project" administrative activities of governments that will not result in direct or indirect physical changes in the environment. The actions proposed herein, amending the PMC to establish a consolidated Reserve for Working Capital for the Light and Power Fund, is an administrative activity, and therefore is not a "project" as defined by CEQA. Since the action is not a project subject to CEQA, no environmental document is required.
Respectfully submitted,
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Michele Beal Bagner
City Attorney
Prepared by:
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)ion 0 Connell
Assistant City Attorney
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