AGENDA
MUNICIPAL SERVICES COMMITTEE
REGULAR MEETING NOTICE
SEPTEMBER 9, 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
Tamer Sabha, 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 SEPTEMBER 9, 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:
[email protected]
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
SEPTEMBER 9, 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, September 9, 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 September 4, 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.
Zulma Ross
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
SEPTEMBER 9, 2025
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
The Municipal Services Committee may take action within its authority on any item listed on this agenda as it deems appropriate following consideration and discussion of the matter.
APPROVAL OF MINUTES
INFORMATIONAL ONLY
Information only items contain no staff recommendations. The committee may, however, take action within its authority relating to informational items on the agenda as it deems appropriate following consideration and discussion of the matter.
1. ELECTRIC RATE STUDY UPDATE
2. UPDATE ON THE METRO NORTH HOLLYWOOD TO PASADENA BUS RAPID
TRANSIT PROJECT
3. SEWER SYSTEM MANAGEMENT PLAN UPDATE
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
ADJOURN
NEW BUSINESS
1 ITEM #1
2 P A S A D E N A W A T E R A N D P O W E R
MEMORANDUM
September 9, 2025
To: Municipal Services Committee
From: David M. Reyes
General Manager
Subject: Electric Rate Study Update
This memorandum is for information only. The Municipal Services Committee may, however, take action relating to this item as it deems appropriate following consideration and discussion of the matter.
BACKGROUND:
This report is to provide an informational update to the Municipal Services Committee (“MSC”) about the status of the City of Pasadena’s (“City’s”) Electric Rate Study (“ERS”).
The electric rate study aims to develop a cost-based, rate plan aligned with the City’s goals of maintaining fiscal responsibility and stability, improving and enhancing public facilities and infrastructure, and increasing sustainability efforts. The study process includes a comprehensive cost of service analysis, financial modeling, public engagement strategy, and a review and update of the light and power fund rate ordinance.
PWP has provided the MSC with several project updates over time, all of which have led up to this status report. These updates include:
Awarding the contract for the study.
Development of the financial model.
Modernizing and streamlining ordinance provisions to align with current industry practices.
Developing a working capital reserve policy to establish boundaries for future rate plan recommendations.
Presenting the two-phase public engagement process:
Phase 1: Soliciting input regarding customer expectations. Phase 2: Disseminating information about the approved rates, their impacts, and ways for customers to save.
Presenting a five-year outlook of financial plan with integration of incremental costs from the optimized strategic plan outputs
3 Electric Rate Study Update
September 9, 2025
The most recent guidance was to develop a stable rate plan using all financial tools for a two-year time horizon using costs in the financial model until 2029 and come back with a recommendation.
PROGRESS UPDATE:
Pasadena Water and Power is advancing its comprehensive Electric Rate Study with progress in three interconnected areas. First, the financial model has confirmed the need for revenue increases to meet rising costs, maintain reliability, and support the City’s transition to 100% carbon-free power by 2030, with a two-year rate plan under development to balance system requirements and steady rate increases. Second, staff is conducting a comprehensive review of the Light and Power Rate Ordinance to modernize outdated provisions, streamline rate schedules, and prepare for new sections such as electric vehicle rates and advanced metering–enabled pricing structures, with recommendations forthcoming in the fall. Third, PWP is continuing public engagement through webinars, community events, large-customer conversations, and the launch of a new online platform to ensure transparency, gather input, and prepare customers for upcoming rate changes.
Together, these efforts are designed to align financial planning, utility modernization, and understanding of community voices in building Pasadena’s clean energy future.
System-Wide Average Effective Rate Analysis:
On July 14, 2025, City Council approved the preparation of a two-year electric rate plan using the cost assumptions up to 2029. In addition, City Council confirmed staff’s intended path to include steady rate increases as practical using all financial tools available, including the use of debt financing and cash balances.
The study’s revenue requirements analysis is complete, which includes the evaluation of operating costs, capital investment and reserve requirements. The findings from the financial model used to project electric system costs indicate that revenue increases are necessary. The revenue increases are necessitated by increasing costs to deliver power to customers. The Department is facing challenges with cost increases of materials to maintain the distribution grid and provide services that PWP customers expect. PWP is also investing in initiatives that promise long-term positive impacts, such as advanced metering infrastructure and other long-awaited projects. The increased costs of renewable energy procurement is also a contributing factor to increased revenue needs and revenue to keep pace with the transition to 100% carbon-free electricity by 2030. PWP has committed to only purchasing renewable resources since 2018 and the price of renewable energy based on market indices have more than doubled in the past five years. With the proposed rate plan to keep pace with the revenue requirements, PWP can ensure adequate funding for critical projects and continue to provide electric services that customers can count on.
Modeling the revenue requirements include making use of financial tools available to PWP to modestly increase rates over time, this includes the use of debt financing and the use of 4 Electric Rate Study Update
September 9, 2025
cash reserves
. The next stage of the process will also provide Council with alternatives to ease into rates for customer classes should the impact to customers be untenable.
As shown in the graph below, the electric system financial model includes annual system wide effective rate increases of 9.5% in fiscal years 2026 and 2027. These rate changes, intended to take effect on January 1st of each year, are projected to generate approximately $21.5 million and $25.5 million in additional revenues in fiscal years 2026 and 2027, respectively.
The cost-of-service analysis is underway to assign or unbundle the various costs of the net revenue requirement to the electric utility functional services (i.e. power supply, distribution, transmission, etc.). These unbundled cost components are then allocated to the various electric rate customer classifications. The allocated cost-of-service for each customer class will be evaluated against the estimated annual revenues from that class to determine the appropriate retail pricing for which to recover costs. Staff will return in the fall to recommend the two-year rate plan that allocates the revenue requirements across the appropriate retail rates. After the next portion of the study is complete, PWP is then prepared to recommend rates and pricing by customer classes for City Council to deliberate.
Update on Comprehensive Light and Power Rate Ordinance Review with Recommendations Coming Soon:
The City recently updated several provisions of the Light and Power Rate Ordinance. These updates aimed to eliminate outdated or obsolete language and align with current industry 5 Electric Rate Study Update
September 9, 2025
best
practices. Key changes included the removal of the Direct Access Service section and revisions to long-term contract provisions. Additionally, the City adopted new working capital reserve policies to enhance liquidity, manage utility-related risks, and support strong creditworthiness and operational resilience. The Stranded Investment Reserve was also dissolved to bolster current working capital and help maintain service continuity and rate stability.
Staff is currently reviewing the overall structure of the ordinance and working to propose revisions that are aligned with current industry leading practices and provide a streamlined approach for future policy revisions. For example, there are many duplicated conditions in rate schedules that are repetitive. Staff is also considering a significant alternative structure that aligns with other utilities, which is to remove the pricing from the ordinance and have that adopted in a separate coordinated action. This structural change will enable rate schedule updates to have a consistent process with other fee schedule modifications within the City. Further administrative amendments to the ordinance will incorporate updated definitions and removing inconsistent references to regulations.
In consultation with the City Attorney’s Office and with outside counsel, PWP is also in the process of reviewing multiple provisions that are either obsolete, should have been eliminated after sunset provisions, or are unclear or out of alignment with current policy.
PWP is also recommending the addition of several new sections to reflect a more modern utility, which includes the addition of an electric vehicle section, adoption provisions for time- of-use rates after the implementation of advanced metering infrastructure, and a more streamlined net energy metering section to provide certainty to customer-generators who have or are considering making investments in solar system installations. PWP is reviewing ordinance provisions that intersect with external regulatory provisions to ensure they are still applicable. A comprehensive presentation is forthcoming in the fall as PWP forms recommendations that align with City policy.
Public Engagement Progress and Future Efforts:
Along with the cost-of-service analysis, staff is directly engaging with the community to expand awareness and receive feedback on customer priorities and better understand their needs. PWP is committed to demonstrating transparency throughout the process by providing clear and accessible information, which helps build trust and ensures that customers are well-informed and involved in the decision-making process. For phase one, or the “input phase”, community conversations have taken place starting in the spring with “A Shaping our Energy Future Webinar”, the first Annual PWP Open House on June 26, 2025, and soon with the launch of “engagePWP” an online engagement hub for the community. In addition, with our large customers, PWP has hosted the large customer event with an emphasis on power rates and has been having a series of conversations with key customers to solicit input on how as a community-owned utility, PWP can customize or provide rate plans or options to create a symbiotic relationship. 6 Electric Rate Study Update
September 9, 2025
NEXT STEPS:
PWP will finalize the cost-of-service analysis, pricing design and comprehensive ordinance review to present to MSC and City Council. Meanwhile staff will launch and incorporate feedback from engagePWP and other community conversations. After rates have been discussed and approved by City Council, PWP will then start phase two of the public engagement plan. which will include dissemination of information about the new rates, more community conversations to demonstrate transparency as well as information about how customers can participate in programs to support the changes. PWP is also developing community outreach kits to provide to community-based organizations to provide broad coverage within the community on an issue that impacts all customers.
7 ITEM #2
8 DATE: September 9, 2025
TO: Municipal Services Committee
FROM: Joaquin Siques, Director of Transportation
SUBJECT: Update on the Metro North Hollywood to Pasadena Bus Rapid Transit Project
Background
The Los Angeles County Metropolitan Transportation Authority (Metro) is advancing the design of the North Hollywood to Pasadena Bus Rapid Transit (BRT) Project, an 18- mile high-capacity transit corridor connecting the North Hollywood B Line/G Line Station to the A Line in Pasadena. The project traverses the cities of Los Angeles, Burbank, Glendale, and Pasadena.
In April 2022, Metro approved the project with modifications that reflect the City of Pasadena’s feedback, including limiting BRT operations within Pasadena to mixed-flow lanes. A Cooperative Agreement between Metro and the City was subsequently approved by City Council in October 2024, that defines roles and responsibilities during the design and construction phases and to allow for reimbursement of City-incurred costs.
Current Status and Next Steps
Representatives from Metro will attend the Municipal Services Committee meeting to provide a project update. Their presentation will include the current status of the design phase, anticipated construction timelines, and coordination efforts with the City. Building on the outreach efforts that were conducted during the development of the project and the EIR phase, as well as the ongoing community engagement efforts underway, Metro will also discuss the next steps in community engagement for this project to re-introduce the project to residents and businesses along the corridor and discuss potential construction impacts. Metro will outline the next steps in project implementation and opportunities for continued collaboration.
Prepared by: Approved by:
Sebastián Andrés Hernández Joaquin T. Siques
Principal Planner Director of Transportation
9 ITEM #3
10 DEP
ARTMENT OF PUBLIC WORKS
MEMORANDUM
TO: Municipal Services Committee
FROM: Greg de Vinck P.E., Director of Public Works
DATE: September 9, 2025
SUBJECT: Sewer System Management Plan - Update
This memorandum provides an overview of the recently adopted 2025 Sewer System Management Plan (SSMP) and highlights the operational and capital improvements now underway as a result of the sewer rate adjustments approved by the City Council prior to Fiscal Year 2025.
Background
Pasadena’s sanitary sewer system includes approximately 328 miles of pipe, 7,500 manholes, and three sewer pump stations. The system conveys an average of 14 million gallons per day to the Los Angeles County Sanitation District through 92 connections and is composed largely of infrastructure that is more than 90 years old.
The Sewer System Management Plan is the City’s comprehensive planning document that outlines the policies, programs, and procedures used to manage and maintain the sewer collection system. As required by the State Water Resources Control Board’s Waste Discharge Requirements (WDR), the SSMP must be updated every six years.
The City Council adopted the 2025 update on June 2, 2025, in accordance with the revised WDR Order No. 2022-0103-DWQ.
SSMP Enhancements and Program Improvements
The 2025 SSMP reflects the City’s expanded capacity to implement best management practices across several key areas of sewer system oversight, made possible by the June 2024 sewer rate adjustment.
11 Sewer System Management Plan – Update
September 9, 2025
A major improvement is the implementation of a formal condition assessment program.
In prior years, maintenance relied on full-system annual cleaning and targeted televising based on observed or reported conditions. While effective in many respects, that approach provided limited information about overall pipe condition across the system.
With additional resources now available, the City is undertaking closed-circuit televising of approximately 250,000 linear feet of sewer main and inspection of roughly 1,100 manholes annually, allowing for full system condition rating every seven years. This aligns with industry best practices and supports more strategic maintenance and rehabilitation planning.
The fats, oils, and grease (FOG) compliance program has also been enhanced. While the City has historically conducted FOG-related inspections and outreach as staffing and resources allowed, there was no formal structure or reliable funding mechanism in place. With the adoption of a dedicated FOG inspection fee as part of the FY 2025 General Fee Schedule, the City can now perform inspections of food service establishments on a consistent two-year cycle. The program includes direct engagement with facility owners and staff, provision of educational materials, and guidance on proper grease disposal and maintenance of interceptor devices. These efforts support compliance with Pasadena Municipal Code Section 8.14 and help prevent blockages that could otherwise lead to sanitary sewer overflows.
Capital Improvements Funded by Sewer Rate Adjustments
The new rate structure also allows the City to advance essential capital projects that were previously deferred due to funding constraints.
This includes the trenchless rehabilitation of approximately 40,000 linear feet of sewer main each year (equivalent to 7.5 miles), as well as localized point repairs and manhole rehabilitation. These efforts will significantly improve the structural integrity and reliability of the system while minimizing the need for more disruptive repairs in the future.
In addition, the City is preparing to modernize the Busch Garden and Rosemont sewer pump stations, which date back to the 1940s. Planned improvements include mechanical, structural, and electrical upgrades to improve performance and extend the operational life of both facilities. Construction is expected to begin in Fiscal Year 2026, with the total project cost estimated at $5.25 million.
Conclusion
With adoption of the 2025 SSMP and the funding support provided by the June 2024 sewer rate adjustment, the City is now well-positioned to implement long-planned improvements to both operations and infrastructure. These enhancements will improve service reliability, support compliance with state mandates, and ensure responsible long-term stewardship of Pasadena’s sewer system. The Department of Public Works will continue to provide updates as implementation efforts progress 12 Department of Public Works
Sewer System
Management Plan
(SSMP)
Municipal Services Committee
September 9, 2025
13 Department of Public Works
Presentation Purpose
2 1. Sewer Network Overview
2. Define the SSMP
3. Regulatory background/history
4. Provide overview of adopted
2025 SSMP and highlight key
updates
5. Share benefits to the community
6. Summarize upcoming Capital
Improvement Projects
14 Department of Public Works
City’s Sewer Network Overview
3 • Consists of
> 328 miles of pipes
> 7,500 manholes
> 3 Lift stations
**Note: Majority of the sewer
mains are over 90 years old.
• Average flow of 14 million
gallons per day (GPD)
• Conveys untreated wastewater to Los Angeles
County Sanitation District’s trunk sewer system
through 92 separate connections
15 Department of Public Works
What is an SSMP?
4 A Sewer System Management Plan (SSMP) is a documented plan that outlines how the City manages, operates,
maintains, and improves its sewer collection system to
reduce the risk of overflows, protect water quality, and comply with state regulations.
> Prevent sanitary sewer overflows (SSOs)
> Ensure proper system operation and
maintenance
> Protect public health and the environment
> Comply with State Water Resources Control
Board requirements
> Plan for long-term infrastructure needs
The SSMP is our blueprint for responsible, resilient, and transparent sewer system management
16 Department of Public Works
Regulatory Background
• California State Water Resources Control
Board Statewide General Waste Discharge
Requirement (WDR) for Sanitary Sewer
Systems
• Order No. 2006-0003-DWQ (2006)
• Order No. WQ 2022-0103-DWQ (2022)
• The previously adopted SSMP was
presented and adopted by City Council
on December 10, 2019.
• An updated SSMP was adopted by
Council on June 2, 2025 in compliance
with WDR 2022 regulations
• The SSMP is required to be updated every
6 years and must be approved by the
Agency’s governing board at a public
meeting
• The entire document is available to
public through the City’s website
under Public Works Permitting >
Engineering Resources
5 17
Department of Public Works
2025 VS. 2019 – What’s New?
6 Category 2019 SSMP 2025 Update Highlights
Spill Categories 3 categories 4 categories; includes small non- surface spills
Asset Management & GIS GIS Map of Assets Requires GIS Map and Monthly Updates
Climate Resilience Not included/required Includes system vulnerability and adaptation planning
Staff Training General O&M and SSMP training Expanded training for spill response and reporting
O&M Practices Annual cleaning, complaint-
based investigation
Structured, scheduled PM and
asset rehab
Public Outreach Included goals about FOG
education
Requires FOG
outreach/education
Audits & Updates 5-year update, 2-year audit 6-year update, 3-year audit, annual change log
18 Department of Public Works
Enhanced O and M
7 2019 SSMP
> Annual cleaning (jetting) of full
system only
> Investigations based on
complaints or observed issues
> Minimal CCTV—only problem
areas
> Issue Driven Maintenance
2025 SSMP
> Televise ~250,000 feet/year (1/7 of
system)
> Inspect ~1,100 manholes/year
> Full condition rating of entire
system every 7 years
> Enables risk-based planning and
preventive maintenance
Thanks to City Council’s 2024 rate adoption, Public Works can now meet industry best practices—enabling a shift toward planned, proactive maintenance and improved collection system oversight 19 Department of Public Works
FOG Program
8 New FOG inspection fee adopted in FY
2025 General Fee Schedule
• Applies to Food Service Establishments (FSEs)—including restaurants, commercial kitchens, and food prep
facilities
• Inspections conducted once every two years to ensure
proper fats, oils, and grease disposal practices
• Facility owners and staff receive educational materials and best practices
> Grease interceptor maintenance
> Proper disposal and spill prevention techniques
> Recordkeeping guidance
• Supports compliance with Pasadena Municipal Code
8.14 • Helps prevent sewer blockages and overflows,
protecting public health and local waterways
20 Department of Public Works
New Rates at Work
9 Televising and Condition Assessment of the entire
collection system every 7 years (1/7 per year)
➢ ~47 miles / ~248,160 LF per year
➢ ~1,075 manholes per year
Lining approximately 40,000 LF (7.5 miles) of sewer
annually
21 Department of Public Works
New Rates at Work (cont.)
Est. Project Cost = $5.25M
Scope:
Project provides for mechanical,
structural, and electrical
upgrades of the Busch Garden
and the Rosemont sewer pump
stations
*Expected to begin const. in FY 26
10 Modernization of Busch Garden
and Rosemont Sewer Pump
Stations
22 Department of Public Works
Questions
Questions?
11 23