Agenda — Finance Committee, April 13, 2026 (part 1 of 2)

AGENDA

FINANCE/AUDIT COMMITTEE

SPECIAL MEETING NOTICE
APRIL 13, 2026
PUBLIC MEETING 3:00 P.M.

Me
mbers
Victor M. Gordo, Mayor
Tyron Hampton, District 1
Rick Cole, District 2
Gene Masuda, District 4
ST
AFF
Karin Schnaider, Director of Finance
Arnold Lee, Chief Assistant City Attorney
Gloria Acevedo, Recording Secretary
MI

SSION 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 c
ompliance 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.

Languag
e translation services are available for this meeting by calling (626)744-4124 at least 24 hours in advance.

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Meeti
ngs are broadcast live on cable Channel 3 and on the Internet at 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/ Mater
ials 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 SPECIAL FINANCE/AUDIT COMMITTEE MEETING FOR APRIL 13, 2026, AT 3:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.

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her 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:
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gacev
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DEPARTMENT OF FINANCE

CITY OF PASADENA

NOTICE OF SPECIAL MEETING

OF THE FINANCE/AUDIT COMMITTEE
APRIL 13, 2026
PUBLIC MEETING: 3:00 P.M.

PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM 5249
NOTICE IS HEREBY GIVEN that the special meeting of the Finance/Audit Committee will be held on Monday, April 13, 2026, at 3:00 p.m. in the Pasadena City Hall Council Chambers S249.

HEREBY CERTIFY that this notice, in its entirety, was posted on the Internet at www.cityofpasadena.net/commissions/city-council-finance-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 9th day of April , 2026, by 5:30 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 list set forth herein below.

DISTRIBUTION:

City Council
City Manager
City Attorney
Public Information Officer
Los Angeles Times
Pasadena Independent
ColoradoBoulevard.net
La Opinion
Pasadena Now
Pasadena Star News
Pasadena Weekly
Conversation Live
Gloria Acevedo, Recording Secretary
Finance/Audit Committee
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 interpretaci6n disponible para estas juntas 1/amando al (626) 744-4124 por lo menos con 24 horas de anticipaci6n.

SPECIAL MEETING
AGENDA

FINANCE/AUDIT COMMITTEE
APRIL 13, 2026
Public Meeting: 3:00 P.M.

Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
The Fin
ance 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.

PUBLIC MEETING - 3:00 P.M.

ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING

AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS

CONSIDERED

APPROVAL OF MINUTES
Februar
y 9, 2026 Special Meeting

OLD BUSINESS

1. FINAL

REPORT ON PAYROLL AUDIT

2. FINAL

REPORT ON STREET PAVEMENT MAINTENANCE PROGRAM
AUDIT

NEW BUSINESS

3. APPRO
VE AMENDMENTS TO FISCAL YEAR 2026 CAPITAL

IMPROVEMENT PROGRAM

4. AMEND F
Y 2026 OPERATING BUDGET OF THE ECONOMIC
DEVELOPMENT DIVISION TO AWARD 2025 DISASTER RELIEF FUNDS

FOR MICRO-ENTERPRISES

Page 1 ends

2 INFORMATION 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.

5. REPORT ON CITY PROCUREMENT- FISCAL YEARS 2023 THROUGH 2025

6. FY 2026 CAPI

TAL IMPROVEMENT PROGRAM - THIRD QUARTER

MONITORING REPORT

ADJOURN

Page 2 ends

APPROVAL OF MINUTES
• February 9, 2026 Special Meeting

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01 02/09/26 Finance/Audit Committee Meeting

CITY OF PASADENA

MEETING OF THE FINANCE/AUDIT COMMITTEE MINUTES

PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER S249
FEBRUARY 09, 2026

SPECIAL MEETING
OP
ENING Chair Gordo called the special Meeting of the Finance/Audit Committee to order at 3:40 p.m.

ROLL CALL: Mayor Victor M. Gordo (Chair)
Councilmember Rick Cole
Councilmember Tyron Hampton (Absent)
Councilmember Gene Masuda
Sta
ff: Miguel Márquez, City Manager
Brenda Harvey-Williams, Assistant City Manager
Matthew Hawkesworth, Assistant City Manger
Karin Schnaider, Director of Finance
Arnold Lee, Chief Assistant City Attorney
Alex Souto, Deputy City Manager
Armine Trashian, Controller
Vic Erganian, Deputy Finance Director/City Treasurer
Tim Park, Budget Administrator
David Reyes, General Manager Water and Power
Mark Jomsky, City Clerk
Tiffany Jacobs-Quinn, Director of Human Resources
Vanna Lesh, Benefits Administrator
Joaquin Siques, Director of Transportation
Greg de Vinck, Director of Public Works
Brad Boman, Water Operations Manager
Gary Takara, Engineering Manager
Gloria Acevedo, Recording Secretary
Gues
ts: Jens Weiden, Chief Executive Officer, Rose Bowl Operating Company (Remote)
Derek Doolittle , General Manager, Rose Bowl Operating Company (Remote)
Mo Salama, Chief Financial Officer, Rose Bowl Operating Company (Remote)
Eric Tashman Norton Rose Fullbright US LLP (Remote)
Bobby Cheung Norton Rose Fullbright US LLP (Remote)
David Leifer Norton Rose Fullbright US LLP (Remote)

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02 02/09/26 Finance/Audit Committee Meeting
Mike Ross, Chief Executive Officer, Pasadena Center Operating Company (Remote)
Eric Happe, Director of Finance, Pasadena Center Operating Company (Remote)
George Falardeau, Executive Director, Pasadena Community Access Corporation (Remote)
Chris Miller, Chief Operating Officer, Pasadena Community Access Corporation (Remote)
APPRO
VAL OF MINUTES: It was moved by Councilmember Masuda, seconded by Councilmember Cole, to approve the November 24, 2025, Special Meeting of the Finance Committee meeting minutes. (Motion Unanimously carried) (Absent: Councilmember Hampton)
NEW BU
SINESS: JOINT ACTION OF THE CITY COUNCIL AND THE PASADENA PUBLIC FINANCING AUTHORITY: APPROVE THE CERTIFICATES
OF PARTICIPATION SERIES 2026A
Chair Gordo introduced the item, and Karin Schnaider, Director of Finance, introduced Vic Erganian, Deputy Finance Director/City Treasurer, who provided a PowerPoint presentation and responded to questions.

Councilmember Masuda thanked Mr. Erganian for his work on the subject and asked what happened to the realized savings. Mr. Erganian shared that the funds are transferred to the general fund where staff later present recommendations to the City Council during budget presentations.

Councilmember Cole expressed his gratitude to staff for obtaining the savings.

Chair Gordo echoed the comments of Councilmember Masuda and Councilmember Cole.

It was moved by Councilmember Masuda, seconded by Councilmember Cole, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) (Absent:

Councilmember Hampton)

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03 02/09/26 Finance/Audit Committee Meeting

ADOPT A RESOLUTION APPROVING AN UPDATED POLICY FOR

REIMBURSEMENT FOR TRAVEL AND EXPENSES FOR ELECTED

OFFICIALS AND RE-ADOPT WITHOUT CHANGES A POLICY FOR

REIMBURSEMENT FOR TRAVEL AND EXPENSES FOR OFFICIALS

APPOINTED BY THE CITY COUNCIL OF THE CITY OF PASADENA

AS MEMBERS OF COMMISSIONS OR COMMITTEES
Chair Gordo introduced the item, and Miguel Márquez, City Manager , introduced Alex Souto, Deputy City Manager, who provided a PowerPoint presentation and responded to questions.

Chair Gordo asked for clarification on the security reimbursable allowance that takes effect on July 1, 2026. Mr. Souto shared moving forward the recommendation is to include the hardware itself.

Councilmember Cole expressed concern that the current direction related to the security allowance is lacking clarity, such is how are the needs going to be assessed, and what happens to an installed system after the Councilmember’s term expires.

Chair Gordo gave direction to staff to work with the Pasadena Police Department and/or the Department of Information Technology to develop a process where either department could provide an assessment of the Councilmember’s needs, and provide eligible vendors. Staff will return to the Finance Committee with security options prior to moving the item to the full City Council.

Counci
lmember Cole recommended for staff to return to the February 23, 2026, Finance Committee Meeting with a defined process for the security allowance, the motion was seconded by Councilmember Masuda. (Motion Unanimously carried) (Absent: Councilmember Hampton)
APPROVE AMENDMENTS TO FISCAL YEAR 2026 CAPITAL

IMPROVEMENT PROGRAM
Chair Gordo introduced the item, and Greg de Vinck, Director of Public Works, provided a PowerPoint presentation and responded to questions.

Councilmember Cole requested an explanation of the safety augmentation fund. Ms. Schnaider shared that the fund is available to the Police Department for special projects as an annual special revenue contribution from the state, tied to property taxes.

Chair Gordo provided an overview of how the operating budget presentations are conducted at various City Council Committee meetings.

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04 02/09/26 Finance/Audit Committee Meeting
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)
RECEIVE AND FILE The FISCAL YEAR JUNE 30, 2025, ANNUAL

FINANCIAL REPORTS
Chair Gordo introduced the item and Karin Schnaider, Director of Finance, introduced Armine Trashian, Controller, who provided a PowerPoint presentation and responded to questions.

Councilmember Cole suggested a comprehensive annual review of these reports, as they state facts on how the budget was spent. He expressed concern about revenues not keeping up with inflation, suggested a strong focus on increasing revenue without raising rates and taxes for residents is needed, and shared the importance of investing in placemaking.

Councilmember Cole requested clarification on the following topics related to the Annual Comprehensive Financial Report:
• What are the efforts to raise revenues without raising fees and taxes, particularly through Economic Development Strategic planning?
• Please explain the change in Assigned and Unassigned Fund Balance in the General Fund.
• Please explain the $14 million land purchase stated on page

11. • Pasadena Water and Power (PWP) completed approximately $22.4 million in capital projects. Is this sufficient investment in capital for the utilities.
• On page 90 (note 14: accumulated fund deficits), the deficit in the Health fund was attributed to denied claims by FEMA for COVID-19 reimbursement claims. Is there a concern that FEMA could deny Eaton Fire claims?
• There appears to be a change in compensated absences
reported in the General Fund (page 120).
• In past audits, the Workers’ Compensation fund balance was negative. Has this been addressed?
• Please explain the Other Post Employment Benefit (OPEB) subsidy.
• Has the City evaluated the costs for leasing versus purchasing office space?
Sta
ff will provide a Memo to the City Council with responses.

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05 02/09/26 Finance/Audit Committee Meeting
Councilmember Masuda inquired about efforts to improve the local economy without the need to incur additional costs to residents and businesses.

Chair Gordo shared the establishment of the Housing, Homelessness and Planning Committee, created to allow the Economic Development Committee time to focus on methods to grow our local economy. He also shared some of the challenges that come along with such planning and spoke on how the City is in better shape than other cities with similar assets.

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:

FY 2026 CAPITAL IMPROVEMENT PROGRAM – SECOND

QUARTER MONITORING REPORT
The item was moved to February 23, 2026, Finance Committee meeting.

ADJOURNM
ENT: On the order of the Chair, the special meeting of the meeting of the Finance/Audit Committee was adjourned at 5:00 p.m.
___________ ________________
Mayor Victor M. Gordo, Chair
Finance/Audit Committee
___________
_________
Gloria Acevedo
Recording Secretary

Page 8 ends

OLD BUSINESS - INFORMATION ONLY
ITEM 1

1. FINAL REPORT ON PAYROLL AUDIT

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Office of the City Manager
1 TO Finance/Audit Committee
FROM Ani Antanesyan, Internal Audit Manager
SUBJECT Final Report on Payroll Audit
DATE March 23, 2026
RECOMMENDATION This report is for information only. The Finance/Audit Committee may, however, take action relating to this item as it deems appropriate following consideration and discussion of the matter.

Background:

As part
of our FY 2025/2026 Internal Audit Plan, Internal Audit conducted a Payroll Audit. The objective of this audit was to evaluate the internal controls and processes for the City’s payroll system.

The City
of Pasadena’s Payroll Services Division manages payroll for all City employees, supporting a biweekly payroll cycle with 26 pay periods each year. In FY 2025, the City processed $261 million in payroll, including $171 million in regular pay for 2,136 employees as of the June 11, 2025 pay date. Regular compensation is based on standard annual hours for fulltime employees, including higher totals for Fire shift personnel.

The City m
anages timekeeping through IntelliTime VTI, with the Fire Department using TeleStaff. Payroll Services imports time entries and eligible pay data into Munis, processes prior period adjustments, assigns VTI roles, and maintains pay codes, schedules, and calendars.

Departments review and release time entries, and new employees are added to VTI through Personnel Actions initiated in Munis. Payroll also prepares invoices for taxes, insurance, and union deductions near each payroll cycle’s close.

Munis i
s the system of record for pay rates, benefits, and deductions, maintained by Human Resources in accordance with MOUs and Salary Resolutions. Payroll is processed on a biweekly schedule, supported by five Payroll staff and HR assistance for specific Fire Department pay validations. The City provides a comprehensive benefits package to employees; employees with other medical coverage may opt out of City health insurance and receive an in-lieu payment, either as cash or a deferred compensation contribution.

Inter
nal Audit performed the following to accomplish the audit objective:
• Review
ed policies and procedures for pay and benefits setup, timekeeping in VTI, pay rate changes, prior period adjustments, deductions, vacation accrual, and biweekly payroll processing.
• Interviewed staff across Finance, Human Resources, IT, Public Works, Water & Power, and Parks, Recreation & Community Services.
• Tested major pay types and a sample of employee pay for accuracy and compliance. • Tested high value deduction types for proper setup, withholding accuracy, and transmission to external entities.

Page 10 ends

Office of the City Manager
2 • Reviewed June 11, 2025 payroll to confirm proper approvals, documentation, authorization of changes, and functioning payroll controls. • Verified appropriate segregation of duties within the VTI timekeeping application.

Audit
Findings and Recommendations:

Inte
rnal Audit identified 11 audit findings and corresponding recommendations, which when implemented will improve payroll accuracy, reduce risk, and ensure transparent practices across the organization. Management agreed with all the recommendations. The general management responses are available in the report under each audit observation, and a detailed response from the Human Resources Department is also included in the audit report as Appendix A.

The audit
recommends strengthening payroll accuracy and controls by correcting imputed income errors, removing conflicting pay codes, ensuring proper benefit optout adjustments, and enforcing least privilege access in VTI and Munis. Additional actions include refining HR access controls, establishing a formal Administrative Leave policy, reviewing medical overage practices, and documenting taxability and pensionable status for all pay types. The City should also document vacation accrual practices, enhance FLSA compliance documentation, and update overpayment recovery policies, including criteria for waivers and implement controls to prevent ineligible bilingual pay.

Attach
ments (1):

Att
achment A – Payroll Audit

Page 11 ends

Internal Audit Report
2026-03 Payroll Audit
February 10, 2026 City of Pasadena
Internal Audit Division
City Manager’s Office
100 N. Gar
field Avenue
Pasadena, CA 91101
Data-Informed
Assurance and Advice
Attachment A

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2 City of Pasadena | Internal Audit
Payroll Audit
2026-03

PAYROLL AUDIT
February 10, 2026
Objective
The objective of this audit is to evaluate the internal controls and processes for the City’s payroll system.

Repor
t Highlights
This audit identified that while the City’s payroll services generally function effectively, there are critical gaps in benefits administration, system access controls, and policy documentation that expose the City to financial, compliance, and operational risks. Addressing these issues will improve accuracy, reduce risk, and ensure transparent practices across the organization. • Err
ors in Benefits Management: Resulted in overstatement of the imputed value of Group Term Life insurance, ineligible additional compensation, underpayment of Employee Option Benefit Fund (EOBF) allowances, and undocumented practices related to vacation accrual.
• Bro
ad System Access Risks: Several employees have administrative level access to the Virtual Timecard Interface (VTI) and Munis payroll functionality with minimal compensating controls.
• Lack of
Documented Payroll Processes: Key processes such as managing Administrative Leave pay, handling medical allowance overages, determining CalPERS pensionable pay types and the tax implications of deductions, FLSA compliance related to blended pay rates and overpayment recovery procedures either lack formal documentation or documentation can be enhanced.

The summary below outlines the number of audit observations and their associated risk priority levels
1:

Priority 1 Priority 2 Priority 3
4 5 2
Reason behind Audit
The audi
t was included in the FY 2025/2026 Audit Plan based on issues and concerns discussed during the annual City-wide risk assessment.

Ack
nowledgments
We wo
uld like to thank the departments of Finance, Human Resources, Information Technology, Fire, Public Works, Water and Power, and Parks, Recreation, and Community Services for their assistance with this audit.
1 See Appendix D for details on the risk ranking methodology.

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3 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Table of Contents
A. Report Distribution .............................................................................................................. 3 B. About Internal Audit ............................................................................................................ 3 C. Implementation Strategy ..................................................................................................... 4 D. Background ........................................................................................................................ 5 E. Audit Observations and Recommendations ....................................................................... 8 F. Objective, Scope, and Methodology ................................................................................. 19 Appendix A: Management Response from Human Resources ................................................ 21 Appendix B: Detail from Testwork ............................................................................................ 27 Appendix C: Administrative Leave ........................................................................................... 30 Appendix D: Risk Ranking Methodology.................................................................................. 31 A. Report Distribution
For Action Michael Paliwoda, Principal Human Resources Analyst Christine Landis, Payroll Services Manager
Jessica Freeman-Wong, Assistant Chief Information Officer For Information Miguel M árquez, City Manager
Matthew Hawkesworth, Assistant City Manager
Brenda Harvey-Williams, Assistant City Manager
Nicholas Rodriguez, Assistant City Manager
Alex Souto, Deputy City Manager
Tiffany Jacobs-Quinn, Director of Human Resources
Phillip Leclair, Chief Information Officer
Karin Schnaider, Director of Finance
Audit Committee
B. About Internal Audit
Vision
The City’s Internal Audit division is the business intelligence arm that provides accurate, complete, highly reliable, risk-based, timely, and objective assurance, advice, insight, and foresight to City Management and the Audit Committee to assist in making data-informed decisions.

Team
Ani
Antanesyan, Internal Audit Manager, CIA
Steven Andersen, Senior Internal Auditor, CIA, CISA
Visit
Us
www.cityofpasadena.net/city-manager/internal-audit/

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4 City of Pasadena | Internal Audit
Payroll Audit
2026-03
C. Implementation Strategy
The Implementation Strategy is essential because it translates the audit's findings and recommendations from theory into tangible action, ensuring that the City realizes the full value of the audit. It serves as a forward-looking roadmap, detailing the specific steps that will be taken to address identified control deficiencies, process gaps, or non-compliance issues.

Priority
Level2 No. Theme Recommendation
Anticipated
Completion
Date
Priority 1
1 Income Reporting
Accuracy
Correct imputed income errors, and implement review
procedures and system controls to ensure compliance with IRS rules.

Implemented
2 Conflicting Pays Remove conflicting pay codes, recover overpayments, and implement system validation and periodic reviews. 4/30/2026 3 Benefits
Accuracy
Ensure that employee Opt-Out benefits are adjusted based on any effective date change for higher or lower benefits. 4/30/2026 4 IT Risk Reduction
Reconfigure VTI and Munis roles to enforce least privilege, replace generic accounts, and implement audit logs or
compensating controls for admin-level changes.
4/30/2026
Priority 2
5 Access Controls
Assess and reduce broad HR access in Munis, reconfigure roles to align with least privilege, and institute periodic reviews for admin-level changes.
2/28/2026
6 Administrative
Leave
Establish and document a formal policy for Administrative Leave. 6/30/2026
7 Health Allowance
Overage
Evaluate current medical overage payment practices,
formalize or discontinue them, and adjust impacted
employee contributions to align with documented policy. 6/30/2026
8 Pay Subject to
Tax and CalPERS
Contributions
Create a cross-reference of pay and deduction types with authoritative sources and implement policies for
documenting and reviewing taxability and pensionable
status.
7/31/2026
9 Vacation Accrual
Practices Document existing vacation accrual practices. 6/30/2026 Priority 3 10 FLSA Compliance
Documentation
Enhance the existing FLSA compliance matrix with
supporting federal regulation references, document policies and conduct periodic reviews to ensure continued FLSA
compliance for new or modified pay codes.
1/31/2027
11 Overpayment
Recovery
Clarify MPAR language on overpayment recovery, define
authority and criteria for waivers, and implement controls to prevent ineligible bilingual pay.
6/30/2026
2 See Appendix D for details on Priority Levels.

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5 City of Pasadena | Internal Audit
Payroll Audit
2026-03
D. Background
Payroll Processing
The C
ity of Pasadena’s Department of Finance Payroll Division (Payroll Services) manages payroll services for City employees. In Fiscal Year (FY) 2025, the City expended $261 million dollars in payroll to City employees, Figure 1 below shows the top 10 pay types in FY 2025.

Regular pay comprised $171 million, or 66 percent of direct payroll. As of the June 11, 2025 pay date, the City paid 2,136 employees per a Payroll Services report.

Figur
e 1: Top 10 Pay Types by Amount in FY 2025
Fi
gure 2, below, shows the top ten payroll deduction types in FY 2025.

Figure 2: Top 10 Deduction Types by Amount in FY 2025
$31
$29
$13
$8
$4 $2 $2 $2 $2 $2
$0
$10
$20
$30
$40

FEDERAL TAX
WH

MEDICAL

PREMIUMS
STATE TAX WH 457 DEFERRED
COMP
MEDICARE 457 DEFERRED

COMP- LOAN

PERS CLASSIC -
PMA

PERS PEPRA -
PMA
457 DEFERRED

COMP - ROTH

SPERS NORMAL-

PPOA PP EE NT
Millions
$130
$25
$15 $11 $8 $7 $6 $4 $4 $3
$-
$40
$80
$120
$160

REGULAR PAY REGULAR PAY
SAFETY
56 HR

REGULAR
GUAR
OT 1.5 POSITION

COVER PREM

VACATION
LEAVE

HOLIDAY
LEAVE
SICK LEAVE OT 1.5 PPOA WC SAFETY

NON TAX
Millions

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6 City of Pasadena | Internal Audit
Payroll Audit
2026-03
The City has a biweekly payroll system with 26 cycles, or pay periods, per calendar year.

Regular employee pay is based on 2080 total work hours per year for 40-hour full-time employees, and 2,923 total hours per year for full-time Fire shift employees.

The Ci
ty manages employee timekeeping through the IntelliTime Virtual Timecard Interface (VTI) application, with the exception of UKG TeleStaff for Fire Department employees3. Payroll Services staff import timekeeping data from VTI into the Munis Enterprise Resource Planning (Munis) system for payroll processing. The Payroll Services team also imports any additional eligible pay (e.g., auto allowances, education pay) from the Munis Human Resources module to finalize each employee's biweekly pay. In addition, the Payroll Services processes any Prior Period Adjustments necessary to update a pay type, department change, or project charge from a prior period. Near the close of the payroll cycle, Payroll Services generates the invoices used for payments to taxing entities, insurance companies, and unions based on deductions withheld for those entities. Figure 3, below, shows a high-level view of the payroll process.

In th
e process flow below, a warrant is a Munis term used for each payroll batch processed.

Figure 3: Payroll Processing Flowchart Showing Timecard/Warrant Processing Source: Internal Audit design of Payroll Processing workflow.

Payro
ll Timekeeping System
VTI is the system of record for employee time entry and timekeeping. After employee time entry and supervisor or manager approval, department payroll liaisons review the entries and save them for Payroll Services to import into Munis. For new employees, Payroll Liaisons create Personnel Actions (PAs) in Munis. Once these PAs are output posted, the employee record is established in VTI via an import file from Munis. Payroll Services is responsible for assigning approver and other roles to users, as well as general VTI configuration, including pay codes, schedules, and payroll calendars.
3 A Fire Department Management Analyst provides biweekly TeleStaff data to Payroll Services, who imports it into VTI.

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7 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Munis is the system of record for employee pay rates (including any additional compensation), pay-related benefits, deductions, and anniversary dates for vacation accrual. The Human Resources Department sets up and maintains pay rates and manages benefits (including non- hourly additional compensation) and deductions, in alignment with the City’s 11 bargaining unit Memoranda of Understanding (MOUs) and three Salary Resolutions. When MOUs or Salary Resolutions change or new provisions are added, Human Resources coordinates the necessary implementation of the updates in Munis and VTI. Employee pay periods begin on Mondays and end on Sundays. Employees are paid on alternate Wednesdays, ten days after the end of each pay period. If a pay date falls on a holiday, employees are paid on the prior business day.

The P
ayroll Services team is comprised of five individuals who perform 25 distinct tasks in support of the biweekly payroll process, and eight miscellaneous tasks as needed. A Human Resources Analyst also assists with validating pay for Fire Department employees who transition from a 40-hour to a 56-hour week, or vice versa. Payroll has identified 105 specific job duties that are the responsibility of the four position classifications in Payroll Services.

Ci
ty Provided Benefits for Employees
The C
ity provides a comprehensive benefits package for employees, including health, dental, vision, life, disability, and other insurance. Should an employee have health insurance through a family member, all MOUs and Salary Resolutions allow an employee to “Opt-Out” and receive a payment4 from the City in-lieu of enrollment in a medical insurance plan. This opt-out payment can be received as cash at 65% of the value, or the full opt-out amount can be placed into a deferred compensation account.
4 The opt-out payment amount is determined by an employee’s MOU or Salary Resolution, as well as their hire date.

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8 City of Pasadena | Internal Audit
Payroll Audit
2026-03
E. Audit Observations and Recommendations

1. Overreporting of Imputed Income for Group Term Life Insurance PRIORITY 1
The Internal Revenue Service (IRS) requires employers to calculate, and report imputed income for Group Term Life (GTL) Insurance coverage exceeding $50,000 per year. This imputed value is determined based on the employee’s age and the amount of coverage provided.

Based on Internal Audit’s review of 934 employees that had this GTL deduction on their paycheck for the June 11, 2025 pay date, the following was noted:
a. 167 out of 198 employees in the Pasadena Police Officers’ Association (PPOA) group – representing 84% of that group and 18% of the total 934 employees that had this deduction – had imputed income amounts that were three times higher than IRS guidelines allow. These impacted employees were hired or transferred into a PPOA5 position before September 2022.

Per research by HR and the Department of Information Technology (DoIT), the error was caused by a double import of insurance coverage amounts into the Munis deduction screen for City-paid life insurance. This occurred during the update of the PPOA MOU in 2022, resulting in an inflated imputed income calculation.

HR management perform the following:
a. Review and correct, in coordination with
Finance’s Payroll Services, the imputed
income errors for the affected employees
by recalculating values per IRS guidelines
and updating W-2 forms, if necessary.
b. Establish review procedures to ensure
compliance with IRS rules and accurate
application of GTL deduction rates to
employees.
c. Review the feasibility of implementing
system controls to ensure accurate data
imports during MOU updates or
configuration changes.

Impact
This resulted in an estimated additional imputed (and IRS reported) taxable income between $72 and $1,524 per employee per year.

Management agrees with this recommendation and as of January 30, 2026, has implemented the recommendations. 5 Pasadena Police Officers Association

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9 City of Pasadena | Internal Audit
Payroll Audit
2026-03

2. Incorrect Receipt of Concurrent Additional Pays
PRIORITY 1
Based on Internal Audit’s review of 69 unique pay codes that had a total of $100,000 or more in payment to City employees during FY 2025, the following was noted:
a. One employee has been receiving both Advanced Peace Officer Standards & Training (POST) Certificate Pay and Educational Pay since May 2023, which is not in compliance with the PPOA MOU. According to the MOU, employees are eligible for one level of achievement pay, typically the highest level of pay for which they qualify. Receiving both POST and educational incentive pay simultaneously is not permitted.

In this case, when the employee qualified for Advanced POST Certificate Pay, the Educational Pay code was not removed from their Job Salary Record in the Munis system. As a result, the employee continued to receive both incentive pays concurrently, leading to an overpayment.

HR management perform the following:
a. Remove the Educational Pay from the employee’s
Job Salary Record to ensure compliance with the
PPOA MOU. (Implemented)
b. In coordination with Payroll Services, calculate and recover any overpayment made to the employee
following the Manual of Personnel and
Administrative Rules. (Implemented)
c. Review the feasibility of implementing system
validation rules in Munis to prevent the incorrect
application of various educational pays.
d. Establish a review process to periodically review
potential conflicts in pay codes, either, through
manual review or through system exception
reporting.

Impact
The employee received an extra $254 per pay period, or a total of $15,739 from May 2023 through September 2025. Per the City’s two-year overpayment recovery policy the employee repaid the city $13,200.

Management agrees with this recommendation and will implement by April 30, 2026.

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10 City of Pasadena | Internal Audit
Payroll Audit

2026-03

3. Underpaid Medical Opt-Out Allowance
PRIORITY 1
The City’s Memoranda of Understanding and Salary Resolutions establish varying cut-off hiring dates, based on an employee’s Bargaining Unit or Non-Represented Group. These determine the amount of the Employee Options Benefit Fund (EOBF) allowance that an employee can receive if they select to opt-out of City-provided health insurance. Employees hired after these specific dates receive a lower EOBF allowance.

Internal Audit reviewed 259 employees who opted out of City-provided health insurance for the June 11, 2025 pay date, and noted that:

a. Because the PMA6 bargaining unit offers a higher EOBF opt-out allowance for employees hired before January 1, 2016, an employee who transferred into PMA in August 2024 should have received $652.07 biweekly instead of the $200 amount applicable under their previous LIUNA7 unit. However, the allowance was not updated after the transfer, resulting in the employee continuing to receive the lower amount.

b. At the time of the change, HR Benefits division did not review the Opt- Out criteria to correctly apply the new Bargaining Unit’s EOBF allowance.

HR management perform the following:
a. Calculate the difference between the lower
EOBF Opt-Out Allowance paid and the
higher allowance the employee was entitled
to for the period starting August 2024.

Process and issue the retroactive payment
to the affected employee. (Implemented)
b. Ensure the employee’s current EOBF Opt-
Out Allowance rate is updated to the correct,
higher amount associated with their new
Bargaining Unit’s criteria. (Implemented)
c. Establish a mandatory process step
requiring the HR Benefits division to review
and confirm the employee’s EOBF Opt-Out
eligibility status and associated cut-off dates
whenever an employee changes Bargaining
Units or non-represented groups.
d. Update the Munis Benefit Entries for Job
Class Change Personnel Actions checklist to
ensure that employee Opt-Out benefits are
adjusted based on any effective date change
for higher or lower benefits.

Impact
Payroll Services validated that the City underpaid an employee over $12,000 in deferred compensation through the pay period ending October 19, 2025.

Management agrees with this recommendation and will implement by April 30, 2026.

6 Pasadena Management Association
7 Laborers’ International Union of North America

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11 City of Pasadena | Internal Audit
Payroll Audit
2026-03

4. Risk of Privileged System Administrator Access
PRIORITY 1
The City's Administrative Access Policy states that:
• Administrative access shall only be assigned when necessary and required to complete work for which the administrator is responsible, and not for convenience.
• Administrator access to the City's computing resources shall follow the Principles of Least Privilege, using a separate account from a user’s regular “user” account where technically feasible.

The City’s User Provisioning Policy states that:
• Each user should have a unique user ID to access the computer network or application. User IDs should never be shared.

The NIST8 publication 800-53 defines least privilege as "allowing only authorized accesses for users (or processes acting on behalf of users) that are necessary to accomplish assigned organizational tasks." Based on Internal Audit’s review of all time-keeping related modules in VTI, and Payroll/Employee Master modules in Munis that provide access to change employee pay, benefits, accrual rates and time-off balances, the following were noted:
a. Two Payroll Services employees and three DoIT support staff have broad System Admin access to VTI, which they access via their regular Active Directory accounts, rather than separate admin accounts. Additionally, one generic vendor account was also noted to have broad System Admin access to VTI.
b. In addition, three DoIT support staff have broad system access to Munis Payroll and Employee Benefit functionality via the ZSYS_MUNIS role, which they access via their regular Active Directory accounts.

DoIT management perform the following:
a. Research VTI and Munis roles that allow Payroll Services and DoIT support staff to perform their needed functions without System Administration access. Reconfigure access for affected users based on the results of this research, or Research the feasibility of providing Payroll or DoIT staff a second super user network account that would be used for the performance of VTI (Payroll and DoIT) and Munis
(DoIT) administration tasks, and/or
Require stronger passwords for Payroll and DoIT staff
should they need to do administrative-level tasks with their regular network accounts.
b. Where feasible, replace generic vendor accounts with individual accounts tied to specific vendor personnel,
ensuring vendor access is appropriately restricted and
monitored.

If individual accounts are not practical due to the vendor’s service delivery model, implement compensating controls to ensure vendor access is guided, limited in scope, and
properly logged and monitored.
c. Determine whether VTI has an unalterable audit log
capability to detect configuration or other major changes. If so, use the audit log as a compensating control.

Impact
Failure to implement more comprehensive administrative access controls exposes the City to both security and operational risks.

Without separate admin accounts and least-privilege controls, compromised user accounts can lead to unauthorized access. Broad permissions increase the risks to sensitive payroll and timekeeping data, and generic vendor accounts pose high risk of misuse.

Management agrees with this recommendation and will implement by April 30, 2026. 8 National Institute of Standards & Technology

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12 City of Pasadena | Internal Audit
Payroll Audit
2026-03

5. Risk of High-Level Munis Access
PRIORITY 2
The City of Pasadena's User Administration (Provisioning) Policy emphasizes the principles of least privilege, stating that "Access should be limited to least privilege." This principle is further defined by the National Institute of Standards & Technology publication 800-53, which describes least privilege as "allowing only authorized accesses for users (or processes acting on behalf of users) that are necessary to accomplish assigned organizational tasks.” Based on Internal Audit’s review of Payroll/Employee Master modules in Munis that provide access to change employee pay, benefits, accrual rates and time-off balances, it was noted that six Human Resources employees have broad access to change
payroll parameters via the Munis “ZHR_Admin” role.

DoIT management, in coordination with HR
management, should perform the following:
a. Assess the access rights of the six Human
Resources employees with the “ZHR_Admin” role
and remove any permissions that are not essential
to their job responsibilities.
b. Reconfigure user roles to align with the principle of least privilege, ensuring that employees only have
the access necessary to perform their assigned
tasks.
c. Establish a periodic review process for instances
where an employee requires Admin access to make
changes or corrections.

Impact
Having broad-level administrative access can lead employees to make changes that are not warranted by their position and/or their duties, including retroactive pay changes, therefore compromising the integrity of payroll data.

Management agrees with this recommendation and will implement by February 28, 2026.

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13 City of Pasadena | Internal Audit
Payroll Audit
2026-03

6. Usage of Administrative Leave is Not Formally Documented PRIORITY 2
The City’s Manual of Personnel and Administrative Rules allows employees to be placed on paid Administrative Leave, (1) during investigations related to discrimination or retaliation complaints, (2) during investigations related to an employee’s behavior due to safety concerns, (3) during investigations that may lead to disciplinary action, or (4) for police officers, pending the completion of an administrative investigation (e.g., use of force) or the filing of administrative charges. The City also extended this leave to those directly impacted by the Eaton Fire. The City paid $348,000 in Administrative Leave pay in FY 2024, and $796,000 in FY 2025.

Although the MPAR references Administrative Leave, it does not formally define the following:
• What Administrative Leave is,
• Who qualifies and under what triggers,
• The pay basis (e.g., regular base rate vs. other components), • Duration limits, and
• Approval requirements.

The Pasadena Police Department Policy Manual does provide policy guidance for the application of Administrative Leave specific to police officers; however, there is no citywide guidance. Ambiguity increases the risk of likelihood of inconsistent application, potential inequitable treatment, disputes/grievances, and audit findings – especially in surge events (e.g., disaster response) where use can spike.

HR management perform the following:
a. Establish a documented policy that defines
Administrative Leave that addresses:
• Definition of pay, specifying whether employees
are entitled to full base pay, and/or other pays,
• The circumstances under which it may be
granted, such as investigations, emergencies,
etc.
b. Update the Manual of Personnel & Administrative
Rules to include the definition, criteria, and pay
structure for Administrative Leave to ensure
consistent application across departments.
c. Establish a standardized and documented approval
process for granting paid Administrative Leave,
including justification, duration, and applicable pay
rates.
d. Establish a periodic review process of
Administrative Leave to ensure that only authorized
staff are receiving this pay and that the pay is timely terminated.
e. Maintain centralized records of all Administrative
Leave decisions to support transparency, oversight,
and future audits.

Impact
The rate of pay for Administrative Leave is determined based on institutional knowledge rather than documented policy. As a result, employees may be unable to verify or challenge discrepancies in their compensation during Administrative Leave, increasing the risk of inconsistent pay practices and potential disputes.

Management agrees with this recommendation and will implement by June 30, 2026.

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14 City of Pasadena | Internal Audit
Payroll Audit
2026-03

7. Lack of Policy for Payment of Medical Overage
PRIORITY 2
Based on a review of 340 employees whose City offered health care allowance exceeded their actual medical premium amount as of June 1, 2025, Internal Audit noted the following:
a. These 340 employees receive payment of overage (medical allowance minus medical plan cost), however, there is no official policy to account for this practice, other than general information on overage payment on the Benefits website.
b. Six of the 340 employees received this payment of overage in cash.

However, they did not receive the full cash amount, but 65% of the full amount. The rest of the 334 employees received a full deferred compensation contribution for their payment of overage. The treatment of the payment of the medical overage mimics the way the City provides payments to those employees that choose to opt-out of City provided health care. They can, either, choose 65% of the full value as cash, or transfer the full amount to a deferred compensation account. c. One of the 334 employees received a lower deferred compensation allowance amount than they should have received per the existing practice. Although the employee was hired before the reduced allowance policy took effect, they incorrectly received the lower, post-cutoff allowance amount. The impacted employee received $3,332 lower City 457 contribution per year than the employee would have received per the standard practice.

HR management perform the following:
a. Review the current practice of covering the
gap between City-provided medical
allowance and actual employee selected
medical plan and determine whether this
should be continued. If it is determined to
be continued, then formally document the
practice.
b. Based on evaluation from part (a), if the
current practice will be formalized,
evaluate and document the rationale for
reducing the overage between the medical
allowance amount and actual medical plan
amount to 65% when it is selected by
employee to be taken as cash.
c. For the impacted employee, review their
deferred compensation contributions of the
overage amount between City provided
medical allowance and their selected
medical plan and make the necessary
adjustments to match the formalized
practice.

Impact
340 employees are currently paid a benefit that, per City MOUs and Salary Resolutions, is intended for employees who decline medical coverage. They are receiving both the medical coverage and a payment for the benefit overage up to the City’s allowance amount without formal policy that authorizes that payment.

Management agrees with this recommendation and will implement by June 30, 2026.

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15 City of Pasadena | Internal Audit
Payroll Audit
2026-03

8. Incomplete Documentation of Pensionable and Taxable Status of Pay Types and Deductions PRIORITY 2
Munis contains detailed tables to calculate payroll deductions, allowing for the inclusion or exclusion of specific pay types and related deductions to determine net pay (e.g., taxable amounts or amounts subject to an employee’s pension9). However, these tables and their supporting documentation do not reference authoritative sources – such as IRS publications, California law, or CalPERS regulations10 – to justify the taxability or pensionable status of each pay or deduction type.

When new pay or deduction types are introduced, Payroll Services works with HR, including Benefits, to research and obtain approval for tax and pension implications before implementation. Although a Pay Master List exists with a PERS Earnings field indicating whether a pay type is pensionable or not, the supporting rationale and authoritative references for these determinations are not documented or archived. Similarly, while MOUs and salary resolutions generally state whether a pay type is pensionable, these references are not included in the Pay Master.

For deductions, the Deductions Master includes a “Pre-Tax/Post- Tax” field but lacks documentation of the underlying rationale. As a result, the process relies heavily on institutional knowledge rather than formalized, verifiable sources.

Finance management perform the following:
a. Establish and document a cross-reference between pay and deduction types with source criteria to enable validation for taxability and pensionable status based on authoritative sources such as IRS publications, California State law, CalPERS regulations, and/or other relevant regulations or criteria.
b. In conjunction with Human Resources, establish and document policies and procedures that address the following:
• New pay or deduction type changes include written
justification and references to applicable laws or regulations before implementation,
• Changes to existing pay and deduction types that includes review and approval steps for any updates.
c. Schedule periodic reviews to ensure the pay and deduction tables are in continued compliance with evolving laws and regulations.

Impact
Without comprehensive documented justification for the taxability and pensionable status of pay and deduction types, the City risks payroll errors and non-compliance. Reliance on institutional knowledge makes it difficult to verify the accuracy of pay and deduction types—especially during staff turnover or regulatory changes.

Management agrees with this recommendation and will implement by July 31, 2026. 9 Pay types from which CalPERS member contributions are deducted. 10 E.g., 2 CCR §§ 571 et seq

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16 City of Pasadena | Internal Audit
Payroll Audit
2026-03

9. Undocumented Practices for Vacation Accrual
PRIORITY 2
HR Benefits currently assigns an "anniversary date" of December 31 of the year prior to an employee’s hire date to calculate vacation accrual. This practice was introduced when the City transitioned from annual vacation allotments to per-pay-period accruals. Management reviewed and confirmed this approach during the 2019
implementation of the Munis HR/Payroll system and the upgraded timekeeping system.

Depending on when an employee is hired, this practice can grant anywhere from a few extra days to nearly a full year of additional vacation accrual. This approach is not documented in any MOUs, Salary Resolutions, or the Manual of Personnel & Administrative Rules. As a result, employees may not be aware that their start date can significantly affect their vacation benefits.

HR management document the current practice of
calculating employee vacation accrual based on the
calendar year ending December 31 prior to the
employee’s hire date.

Impact
The City’s practice of assigning a prior-year anniversary date for vacation accrual is currently without formal documentation or policy.

Management agrees with this recommendation and will implement by June 30, 2026.

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17 City of Pasadena | Internal Audit
Payroll Audit

2026-03

10. Supporting Documentation for FLSA Compliance Can Be Strengthened PRIORITY 3
Under the Fair Labor Standards Act (FLSA) (29 U.S.C. § 207(e)), non-exempt employees must receive overtime pay at no less than one and one-half times their regular rate of pay for hours worked beyond 40 in a workweek. The regular rate must include all forms of compensation unless specifically excluded under one of eight statutory exceptions.

To comply, the City has developed four Blended Rate Calculators tailored to different bargaining groups (Non-Sworn, Pasadena Fire Fighters’ Association (PFFA) (40 hour), PFFA (56 hour) and PPOA). These calculators determine the blended overtime rate based on various pay types.

Currently, there are 30 pays that are being paid using Blended Rate Calculators. However, the City does not maintain a formal FLSA compliance matrix that documents which pay codes are excluded from the regular rate and the rationale for each decision. While the calculators show what is included, there is no supporting documentation to confirm whether exclusions align with FLSA statutory requirements.

HR management perform the following:

a. Establish and document an FLSA compliance matrix
that maps each payroll pay code to its exclusion
criteria in the regular rate of pay, with references to the applicable statutory exclusions under FLSA, or
other criteria.

b. Document policies and procedures for evaluating new
or modified pay codes to ensure FLSA compliance
before implementation.

c. Conduct periodic reviews and updates of Blended
Rate Calculators and the FLSA compliance matrix to
reflect changes in laws, regulations, or bargaining
agreements.

Impact
The lack of documentation related to FLSA compliance increases the risk of non-compliance with federal labor laws and may result in inaccurate overtime payments.

Management agrees with this recommendation and will implement by January 31, 2027.

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18 City of Pasadena | Internal Audit
Payroll Audit
2026-03

11. Overpayment Recovery Procedures Lack Formal Criteria PRIORITY 3
According to the Manual of Personnel & Administrative Rules (MPAR), employees working at least 20 hours per week may qualify for bilingual pay. The MPAR also states that the City may recover overpayments for up to two years from the date the overpayment is identified.

Internal Audit found that one employee received pro-rated bilingual pay of $10.52 per pay period despite working fewer than 20 hours per week, resulting in an overpayment of $547.04. Although Human Resources discontinued the bilingual pay, recover of the overpayment was not pursued.

Additionally, MPAR Section 3C contains conflicting language regarding overpayment recovery:
• “The employee will be responsible for reimbursing the City for the overpayment.”
• “Overpayments can be recovered by the City for a period of two years from the date of knowledge of the overpayment.”
• “Employees who are required to repay the City for an
overpayment may make bi-weekly installments for the repayment up to thirty-six months.”
The MPAR does not clearly define whether recovery of overpayments is mandatory or discretionary, nor does it specify the authority or criteria for management to waive recovery.

HR management perform the following:
a. Clarify and reconcile conflicting language in
MPAR Section 3C to clearly state whether
overpayment recovery is mandatory or
discretionary.
b. Define the authority and criteria for waiving
overpayment recovery, and update the
MPAR accordingly, including approval
requirements for exceptions.
c. Implement a control mechanism in Munis to
prevent bilingual pay from being used to
employees working fewer than 20 hours per
week, and/or establish a formal review
process for bilingual pay eligibility during
onboarding and any changes to work
schedules.

Impact
The lack of clear policy language and defined authority for overriding overpayment recovery creates inconsistency in enforcement and increases the risk of financial loss and employee disputes.

Management agrees with this recommendation and will implement by June 30, 2026.

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19 City of Pasadena | Internal Audit
Payroll Audit
2026-03
F. Objective, Scope, and Methodology
The obj
ective of this audit is to evaluate the internal controls and processes for the City’s payroll system.

The scope of the audit covers pay types, and deductions from employee pay, for FY 2025. The scope excluded City-paid deductions. The scope includes review of payroll processes and systems (VTI and Munis) that support payroll.

The scope excludes review of Overtime Pay justification and associated approval, the Fire Department’s TeleStaff timekeeping system, and pay related to the City Council, City Attorney’s, and City Clerk’s Offices.

Inter
nal Audit performed the following to accomplish the audit objective:
• Revi
ewed policies and procedures for employee pay and benefits set-up, timekeeping in VTI including time entry, approval and adjustments, pay rate changes, prior period adjustments, deductions, vacation accrual, and biweekly payroll processing. • Interviewed City staff from the Finance, Human Resources, Information Technology, Public Works, Water & Power, and Parks, Recreation, and Community Services departments.
• Performed detailed testwork on 69 pay types with payments of $100,000 or more during FY 2025 for accuracy and compliance with authoritative criteria. Pay accuracy was reviewed for a judgmentally selected sample of 100 employees (or 4.6% of total workforce) across all departments for the June 11, 2025 pay date. For details see Appendix A.11
• Performed detailed testwork on 44 employee-side deduction types with withholdings of $100,000 or more during FY 2025. Based on deduction type, risk, and materiality, the detailed testwork included either, verification of deduction set-up, withholding accuracy, and/or proper transmission of withholdings to external entities. Generally, deduction types were population-tested for withholding accuracy for the June 11, 2025 pay date.

For details, see Appendix A.12
• Performed detailed testwork for the June 11, 2025 pay date to validate that VTI timekeeping entries and adjustments had proper approvals and documentation, Munis pay and deduction changes were appropriately authorized, and overall payroll processing controls in Munis are functioning as intended. • Validated that appropriate segregation of duties exist for VTI timekeeping approval and for processing employee pay, deductions, and pay related benefit changes. 11 Internal Audit conducted full testing of bilingual pays for all recipients for the June 11, 2025 pay date. Workers’ Compensation, Council, and Executive Pays were excluded from pay type analysis. 12 Note, an employee-side, Employee Option Benefit Fund deduction, was included in scope, since $27 million was deducted in FY 2025 as a rebate, and deductions related to 457 employee deferred compensation were excluded.

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20 City of Pasadena | Internal Audit
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2026-03
G. Conformance Statement
This audit was conducted in accordance with the Global Internal Audit Standards promulgated by the Institute of Internal Auditors. These standards encompass such matters as independence, objectivity, proficiency of staff, due professional care, the scope and performance of work activities, and the management of the internal auditing function. We believe that our work provides a reasonable basis for the reported issues, conclusions, and recommendations.

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21 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Appendix A: Management Response from Human Resources
Observation Management Response Anticipated Completion Date #1: Overreporting of Imputed Income for Group Term Life (GTL) Insurance HR management should perform
the following:
a. Revi
ew and correct, in
coordination with Finance’s
Payroll Services, the imputed
income errors for the affected
employees by recalculating
values per IRS guidelines and
updating W-2 forms, if
necessary. (Implemented)
b. Est
ablish review procedures to
ensure compliance with IRS
rules and accurate application
of GTL deduction rates to
employees.
c. Review the feasibility of
implementing system controls to
ensure accurate data imports
during MOU updates or
configuration changes.

Concur: HR staff will correct the
deduction setup for Life Insurance
deductions for impacted employees
to ensure GTL calculations are
accurate.

HR s
taff will review and correct the
imputed income value calculations in
accordance with IRS guidelines, and
W-2 forms for the 2025 tax year will
reflect the correct and verified
amounts.

HR s
taff will add an additional review
step to the import process when
importing deductions that require
imputed income W-2 reporting.

Completed
Compl
eted
Compl
eted
#2: Incorrect Receipt of Concurrent Additional Pays
HR management perform the
following:
a. Remov
e the Educational Pay
from the employee’s Job Salary
Record to ensure compliance
with the PPOA MOU.
(Implemented)
b. In coo
rdination with Payroll,
calculate and recover any
overpayments made to the
employee following the Manual
of Personnel and Administrative
Rules. (Implemented)
e. Review the feasibility of
implementing system validation
rules in Munis to prevent the
Number of impacted employees: (1)
Conc
ur: HR staff will remove the
additional Educational Pay from the
one impacted employee’s Job Salary
Record and calculate and recover
the overpayment made to the
employee.

HR sta
ff will work with Department of
Information Technology to create a
“Duplicate Education Pay Audit”
custom report to be reviewed by HR
staff following approval of all
Personnel Actions on a bi-weekly
basis.

Compl
eted
Apri
l 2026

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22 City of Pasadena | Internal Audit
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2026-03
Observation Management Response Anticipated Completion Date incorrect application of various
educational pays.
c. Establish a review process to
periodically review potential
conflicts in pay codes, either,
through manual review or
through system exception
reporting.
#3: Underpaid Medical Opt-Out Allowance
HR management perform the
following:
a. Calc
ulate the difference
between the lower EOBF Opt-
Out Allowance paid and the
higher allowance the employee
was entitled to for the period
starting August 2024. Process
and issue the retroactive
payment to the affected
employee. (Implemented)
b. Ensur
e the employee’s current
EOBF Opt-Out Allowance rate
is updated to the correct, higher
amount associated with their
new Bargaining Unit’s criteria.
(Implemented)
c. Est
ablish a mandatory process
step requiring the HR Benefits
division to review and confirm
the employee’s EOBF Opt-Out
eligibility status and associated
cut-off dates whenever an
employee changes Bargaining
Units or non-represented
groups.
d. Update t
he Benefit Entries for
Job Class Change Personnel
Actions checklist to ensure that
employee Opt-Out benefits are
adjusted based on any effective
date change for higher or lower
benefits.

Number of impacted employees: (1)
Concur
: HR staff will ensure the
EOBF opt-out allowance setup is
corrected for the one impacted
employee and will review and
calculate the retroactive payment
due to the one impacted employee.

HR s
taff will review and update
internal Personnel Action checklists
to ensure Bargaining Unit changes
are processed accurately.

HR s
taff will audit the EOBF and opt-
out amounts by February of each
year to ensure the EOBF and opt-out
amounts are correct and capture any
changes requested during Open
Enrollment and entered effective
January 1
st for the new plan year.

Compl
eted
Compl
eted
Apri
l 2026

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23 City of Pasadena | Internal Audit
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2026-03
Observation Management Response Anticipated Completion Date #5: Risk of High-Level Munis Access
DoIT management, in coordination
with HR Management, should
perform the following:

a. Assess the access rights of the
six Human Resources
employees with the
“ZHR_Admin” role and remove
any permissions that are not
essential to their job
responsibilities.

b. Reconfigure user roles to align
with the principle of least
privilege, ensuring that
employees only have access
necessary to perform their
assigned tasks.

c. Should an employee need
Admin access to make changes
or corrections, institute a
periodic review process for
those changes.

Concur: HR management will
conduct a review of the access rights
of HR staff with the “ZHR_Admin”
role and ensure the appropriate level
of access essential to their job
responsibilities is applied.

Based on the review of access, HR
management will work with DoIT to
remove any “ZHR_Admin”
permissions that are no longer
required and assign lower access
roles.

February 2026

#6: Usage of Administrative Leave is Not Formally Documented HR management perform the
following:

a. Establish a documented policy
that defines Administrative
Leave that addresses:
• Definition of pay, specifying
whether employees are
entitled to full base pay,
and/or other pays,
• The circumstances under
which it may be granted,
such as investigations,
emergencies, etc.

b. Update the Manual of
Personnel & Administrative
Rules to include the definition,
criteria, and pay structure for
Administrative Leave to ensure
Concur: HR management will update
the Administrative Leave language in
the MPAR and the approval process
to address the recommendations
made by Internal Audit.

June 2026

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24 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Observation Management Response Anticipated Completion Date consistent application across
departments.
c. Est
ablish a standardized and
documented approval process
for granting paid Administrative
Leave, including justification,
duration, and applicable pay
rates.
d. Est
ablish a periodic review
process of Administrative Leave
to ensure that only authorized
staff are receiving this pay and
that the pay is timely
terminated.
e. Maintain centralized records of
all Administrative Leave
decisions to support
transparency, oversight, and
future audits.
#7: Lack of Policy for Payment of Medical Overage
HR management perform the
following:
a. Revi
ew the current practice of
covering the gap between City-
provided medical allowance and
actual employee selected
medical plan and determine
whether this should be
continued. If it is determined to
be continued, then formally
document the practice.
b. Based on ev
aluation from part
(a), if the current practice will be
formalized, evaluate and
document the rationale for
reducing the overage between
the medical allowance amount
and actual medical plan amount
to 65% when it is selected by
employee to be taken as cash.
c. For the impacted employee,
review their deferred
Concur: HR management
acknowledges the established
practice of treating the EOBF
overage amount in the same fashion
as “opt-out” dollars allowing
employees to place those overage
dollars into their deferred
compensation account or receive it
as a cash payment at 65% of the
amount
HR will for
malize this established
Benefits Administration practice by
adding language to document this
practice in the MPAR.

June 2026

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25 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Observation Management Response Anticipated Completion Date compensation contributions of
the overage amount between
City provided medical allowance
and their selected medical plan
and make the necessary
adjustments to match the
formalized practice.
#9: Undocumented Practices for Vacation Accrual
HR management document the
current practice of calculating
employee vacation accrual based
on the calendar year ending
December 31 prior to the
employee’s hire date.

Concur: HR management
acknowledges the established
practice of providing employees’
vacation accrual using a calculation
that measures years of service using
12/31 of the year preceding an
employee’s hire date instead of an
employee’s actual hire date.

This was an option discussed and
implemented when the City moved
from annual allotments to per pay
period accruals for vacation leave.

This practice was reviewed again by
leadership and explicitly set up to
continue as part of the 2019
implementation of the new
HR/Payroll system and upgraded
timekeeping system.

HR management will update the
MPAR, Vacation Leave section to
memorialize the existing practice
applied to all bargaining units and
non-represented groups.

June 2026
#10: Supporting Documentation for FLSA Compliance Can Be Strengthened HR management perform the
following:
a. Es
tablish and document an
FLSA compliance matrix that
maps each payroll pay code to
its inclusion or exclusion criteria
in the regular rate of pay, with
references to the applicable
statutory exclusions under
FLSA, or other criteria.
b. Document policies and
procedures for evaluating new
Concur: The City of Pasadena is in
full compliance with FLSA when it
comes to what pays are included in
the regular rate of pay (blended
overtime rate) calculation.

The FLSA doesn’t explicitly list out
every pay that is included in the
regular rate of pay calculation.

Instead, it lists out the few forms of
remuneration that are statutorily
excluded.

As a reference document, HR
Management will document and
January 2027

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26 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Observation Management Response Anticipated Completion Date or modified pay codes to ensure
FLSA compliance before
implementation.
c. Conduct periodic reviews and
updates of Blended Rate
Calculators and the FLSA
compliance matrix to reflect
changes in laws, regulations, or
bargaining agreements.
memorialize which pay codes are
excluded under the FLSA.
#11: Overpayment Recovery Procedures Lack Formal Criteria HR management perform the
following:
a. Clar
ify and reconcile conflicting
language in MPAR Section 3C
to clearly state whether
overpayment recovery is
mandatory or discretionary.
b. Defi
ne the authority and criteria
for waiving overpayment
recovery, and update the MPAR
accordingly, including approval
requirements for exceptions.
c. Impl
ement a control mechanism
in Munis to prevent bilingual pay
from being used to employees
working fewer than 20 hours per
week, and/or establish a formal
review process for bilingual pay
eligibility during onboarding and
any changes to work schedules.

Number of impacted employees: (1)
Conc
ur: HR staff will work with
Department of Information
Technology to create a “Less than 20
hours Bilingual Pay Audit” custom
report to be reviewed by HR staff
following approval of all Personnel
Actions on a bi-weekly basis.

HR management will review the
Overpayment Policy language in the
MPAR and consider the
recommendations made by Internal
Audit as part of general MPAR
updates taking place this year.

June 2026

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27 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Appendix B: Detail from Testwork
Figure 1: Munis Pay Types Tested
Ref No Pay Code Pay Code Description Ref No Pay Code Pay Code Description 1 100 REGULAR PAY 37 335 BEREAVEMENT LEAVE
2 101 56 HR REGULAR GUAR 38 337 FLOATING HOLIDAY
3 108 REGULAR PAY SAFETY 39 343 ADMIN LEAVE SAFETY
4 201 56 HR GUAR OT 40 348 FLOAT HOL SAFETY
5 206 SPECIAL EVENT FIRE 41 350 HOLIDAY CASH OPTION
6 210 OUTSIDE JOB 42 351 VACATION FINAL
7 212 CALLBACK PAY 1.5 43 352 VACATION CASH OUT
8 213 CALLBACK PAY 2.0 44 361 VAC CASHOUT SAFETY
9 217 ROSE BOWL POLICE 45 394 COMPED 1.5 PD NO PAY
10 218 MOVIE DETAIL POLICE 46 400 BILINGUAL 100
11 220 OT 1.5 47 430 AUTO ALLOWANCE
12 224 LT OT OUTSIDE JOB 48 433 PHONE/DATA ALLOW
13 225 POSITION COVER PPOA 49 442 ED PAY AA FIRE
14 226 OT 2.0 50 443 ED PAY BACH FIRE
15 227 OT 1.5 PPOA 51 449 FIRE STAFF PREMIUM
16 230 HOLIDAY PAY SAFETY 52 457 BILINGUAL 90
17 236 HOLIDAY CONT WRKD 53 459 BILINGUAL SAFETY
18 238 HOLIDAY OT WRKD-NP 54 460 BILINGUAL PAY
19 240 OT 1.5 EXEMPT 55 469 ED PAY BACH PPOA
20 241 HOLIDAY WORKED 1.0 56 476 ADVANCED POST PPOA
21 251 HOLIDAY WORKED 0.5 57 481 ACTING PAY 5% NP
22 256 OT FOOTBEAT 58 482 ACTING PAY $ PERS
23 262 POSITION COVER PFMA 59 632 STAND BY HOURS
24 263 POS COVER 40-56 1.0 60 634 STAND BY PPOA
25 300 COMP TIME LEAVE 61 635 IN LIEU OF MEAL @1.5
26 304 COMPED LEAVE SAFETY 62 636 IN LIEU OF MEAL @2.0
27 310 VACATION LEAVE 63 637 SENT HOME
28 311 VACATION SAFETY 64 645 OT SHIFT REGULAR
29 322 SICK LEAVE 65 700 OT 1.5 FIRE
30 323 SICK LEAVE SAFETY 66 703 P OSITION COVER PREM
31 325 SICK KINCARE 67 763 P OS COVER 40-56 0.5
32 327 SICK CA PSL 68 960 EO BF CASH IN LIEU
33 329 HOLIDAY LEAVE 69 961 F RINGE BENEFIT GTL
34 330 JURY DUTY LEAVE
35 333 ADMINISTRATIVE LEAVE
36 334 MANAGEMENT TIME OFF

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28 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Figure 2: Munis Deduction Types Tested
Ref No Deduction
Code Description Ref No Deduction
Code Description
1 1100 MEDICARE 38 8700 TRANSPORTATION-SOLO
DRIVER
2 2101 PERS NORMAL-IBEW CL EE NT 39 8800 AFSCME MEMBER DUES 3 2103 PERS NORMAL-LIUNA CL EE NT 40 8801 AFSCME AFLAC PREMIUM 4 2104 PERS NORMAL-PMA CL EE NT 41 8803 IBEW MEMBER DUES 5 2106 PERS NORMAL-EXEC MISC CL EE NT 42 8807 PMA MEMBER DUES 6 2107 PERS NORMAL-MGNR MISC CL EE NT 43 8810 PFFA MEMBER DUES 7 2109 PERS NORMAL-TCAD CL EE NT 44 8811 PPOA MEMBER DUES 8 2114 SPERS NORMAL-P LT CL EE NT
9 2115 SPERS NORMAL-PFFA CL EE NT
10 2116 SPERS NORMAL-PPOA CL EE NT
11 2117 SPERS NORMAL-PFMA CL EE NT
12 2119 SPERS NORMAL-MGNR SF CL EE NT
13 2136 SPERS SPECIAL-PPOA CL EE NT
14 2144 PERS REG CSHARE- PMA CL NT
15 2155 SPERS REG CSHARE-PFFA CL NT
16 2200 PERS NORMAL-AFSC PP EE NT
17 2201 PERS NORMAL-IBEW PP EE NT
18 2203 PERS NORMAL-LIUNA PP EE NT
19 2204 PERS NORMAL-PMA PP EE NT
20 2207 PERS NORMAL-MGNR MISC PP EE NT
21 2209 PERS NORMAL-TCAD PP EE NT
22 2215 SPERS NORMAL-PFFA PP EE NT
23 2216 SPERS NORMAL-PPOA PP EE NT
24 2235 SPERS SPECIAL-PFFA PP EE NT
25 2236 SPERS SPECIAL-PPOA PP EE NT
26 2300 PARS EE DEDUCTION NT
27 2400 MEDICAL PREMIUM EE NT
28 2401 MEDICAL EOBF REBATE
29 2600 VISION PREMIUM EE NT
30 2650 FSA HEALTH 125 NT
31 2651 FSA DEPENDENT CARE 125 NT
32 3000 FEDERAL TAX WH
33 4000 STATE TAX WH
34 6001 COURT ORDER SDU $ 1
35 7000 PERS REG- BER AFSCME CL EE
36 8300 STATE DISABILITY INS AND PFL
37 8654 VOLUNTARY LIFE EE PREMIUM

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29 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Figure 3: 100 Employee Sample for Pay Accuracy Testing13 Ref
No Department Number of Active
Employees Number in Sample
1 Police 357 17
2 Power (part of Water & Power) 299 14
3 Public Works 263 12
4 Parks, Recreation, &
Community Services
256 12
5 Fire 186 9
6 Library & Information Services 105 5
7 Public Health 101 5
8 Water (part of Water & Power) 101 5
9 Planning and Community
Development
82 4
10 Information Technology 81 4
11 Finance 68 3
12 City Manager 57 3
13 Transportation 57 3
14 Housing 38 2
15 Rent Stabilization 32 1
16 Human Resources 30 1
Total 2,113 100
13 This analysis is based on the Employee Inquiry report from Munis as of September 3, 2025.

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30 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Appendix C: Administrative Leave14
Figure 1: Total Administrative Leave Paid by Amount and Hours from FY 2021 to FY 2025 Figure
2: Total Administrative Leave Paid by Department from FY 2021 to FY 202515 14 The analysis is based on Detailed Check History Report from Munis from FY 2021 to FY 2025 for Pay Type 333 Administrative Leave and Pay Type 343 Administrative Leave Safety. 15 The Other category includes the departments of Housing, City Attorney, Transportation, DoIT, City Council, City Clerk, City Manager, Human Resources and Rent Stabilization.

Police
49%
Water &
Power
15%
Fire
8%
Planning
7% Public Works
5%
Library & Info
Svcs.
4%PRCS
4%
Other
4% Finance
2%
Public Health
2%
$549 $567
$217
$348
$794
11 12
5 7
18 0
5 10
15 20
$0
$250
$500
$750
$1,000
FY2021 FY2022 FY2023 FY2024 FY2025
Hours Thousands
Amount Thousands
Fiscal Year
Sum of Amount Sum of Hours

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31 City of Pasadena | Internal Audit
Payroll Audit
2026-03
Appendix D: Risk Ranking Methodology
Category Priority
Level Definition
Required
Management
Action
Recommended
Completion
Timeline
Reasons/Examples
High Risk Priority 1
The observation
represents a severe
control weakness that has
or could immediately lead
to significant financial loss,
regulatory non-
compliance, material
misstatement of financial
reports, or a major
operational failure. It
typically involves a
breakdown of a key
process control.

Immediate action
is required.

Management
must develop and
approve a formal,
detailed
remediation plan
and begin
implementation
immediately.

Within 3 Months
of the final audit
report issuance
date.
• High-Impact SoD Conflict
(e.g., one person
manages the full cash-to-
receipt cycle).
• System Vulnerability
leading to unauthorized
data access.
• Compliance Failure that
exposes the organization
to large fines or loss of
license.

Medium
Risk Priority 2
The observation
represents a significant
control weakness that,
while not immediately
critical, presents a high
probability of loss, error, or
inefficiency if left
uncorrected. It often
involves risks related to
process effectiveness or
data integrity.

Focused
management
attention is
required.

Management
must approve a
remediation plan
and assign
accountability for
implementation.

Within 4-6
Months of the
final audit report
issuance date.
• Lack of Timely
Reconciliations (leading
to detection risk).
• Insufficient
Documentation of key
decisions or procedures.
• Non-optimized System
Access (e.g., broad
access rights exceeding
job needs, but not leading
to an immediate SoD
conflict).

Low Risk Priority 3
The observation
represents an opportunity
for improvement related to
efficiency, best practice
adherence, or process
refinement. These are
usually minor control
deviations or
administrative
weaknesses that do not
pose a direct financial or
compliance threat.

Action is
recommended.

Management
should
incorporate the
recommendation
into future work
plans or process
updates.

Within 9-12
Months of the
final audit report
issuance date.
• Outdated Policies or
Procedures (but staff are
following the unwritten
process).
• Minor Inefficiency in
workflow or report
generation.
• Lack of Standardized
Templates or forms.

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CITY MANAGER’S OFFICE
Payroll Audit
March 23, 2026
Finance/Audit Committee Meeting, Item 4
Presented by: Ani Antanesyan, Internal Audit Manager

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CITY MANAGER’S OFFICE
Background
• The objective of the audit was to:
> Evaluate the internal controls and processes for the City’s payro
ll system
• Identified 11 issues
> 4 high risk, 5 medium risk, and 2 low risk
• Issued 11 recommendations
> Management agreed with all recommendations
> One recommendation has been fully implemented
2

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CITY MANAGER’S OFFICE
Audit Results – Finding 1

3 1. Overreporting of Imputed Income for Group Term Life Insurance Priority 1
• Correct errors: recalculate imputed income and update W-2s • Strengthen reviews: establish procedures to ensure IRS-compliant GTL calculations
• Add controls: assess system safeguards to prevent incorrect data imports during MOU or configuration updates
Fully Implemented
Impact
This resulted in an estimated additional imputed (and IRS reported) taxable income between $72 and $1,524 per employee per year.

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CITY MANAGER’S OFFICE
Audit Results – Finding 2

4 2. Incorrect Receipt of Concurrent Additional Pays
Priority 1
• Remove conflict: eliminate incorrect Educational Pay entries • Recover overpayments: calculate and recover excess pay • Add validations: assess system rules in Munis to prevent incorrect educational pay entries
• Review pay codes: implement periodic checks or exception reports to identify conflicting pay codes
Impact
The employee received an extra $254 per pay period, or a total of $15,739 from May 2023 through September 2025. Per the City’s two-year overpayment recovery policy the employee repaid the city $13,200.

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CITY MANAGER’S OFFICE
Audit Results – Finding 3
5 3. Underpaid Medical Opt-Out Allowance
Priority 1
• Pay difference: calculate owed opt-out allowance and issue retro payment
• Update rate: ensure employee’s opt-out allowance reflects the correct higher rate
• Verify eligibility: require HR Benefits to confirm opt-out status and cut-off dates when employees change bargaining groups
• Align benefits: update Munis checklists to ensure opt-out amounts adjust correctly when effective dates change
Impact
Payroll Services validated that the City underpaid an employee over $12,000 in deferred compensation through the pay period ending October 19, 2025.

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CITY MANAGER’S OFFICE
Audit Results – Finding 4
6 4. Risk of Privileged System Admin Access
Priority 1
• Refine access: adjust VTI and Munis roles to allow necessary work without full system-admin rights
• Limit vendors: replace generic vendor accounts with individual, restricted accounts or apply compensating controls
• Enable logging: determine whether VTI provides audit log and use it as a compensating control
Impact
Failure to implement stronger admin access controls increases security/operational risks by allowing overly broad permissions, shared accounts and insufficient segregation of duties to expose sensitive payroll and timekeeping data.

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CITY MANAGER’S OFFICE
Audit Results – Finding 5-11

7 Audit Findings 5-9
Priority 2
• Tighten HR access: reduce broad HR permissions in Munis and align roles with least-privilege
• Define Admin Leave Policy: create and document a formal Admin Leave Policy
• Fix overages: review medical overage practices and align employee contributions with policy
• Clarify tax rules: cross-reference pay types with authoritative guidance to confirm tax and CalPERS status
• Document accruals: record and formalize current vacation-accrual practices
Audit Findings 10-11
Priority 3
• Improve FLSA documentation: strengthen FLSA compliance matrix and review pay-code compliance regularly
• Clarify overpayment recovery: update City guidance on overpayment recovery, waiver criteria and controls to prevent ineligible bilingual pay

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CITY MANAGER’S OFFICE
Next Steps
Thank you!
8

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OLD BUSINESS - INFORMATION ONLY
ITEM 2

2. FINAL REPORT ON STREET PAVEMENT MAINTENANCE PROGRAM
AUDIT

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Office of the City Manager
1 TO Finance/Audit Committee
FROM Ani Antanesyan, Internal Audit Manager
SUBJECT Final Report on Street Pavement Maintenance Program Audit (City of Pasadena Street Maintenance and Paving: Efforts Underway Amidst Challenges)
DATE March 23, 2026
RECOMMENDATION This report is for information only. The Finance/Audit Committee may, however, take action relating to this item as it deems appropriate following consideration and discussion of the matter.

Background:

As part
of our FY 2025/2026 Internal Audit Plan, the Internal Audit Division hired TAP International, Inc., a woman owned firm with an office in Pasadena to evaluate the following:

1. Are resources – funding, staffing, and management tools – adequate to maintain City streets?

2. Are clear policies and processes in place to guide maintenance and paving decisions?

3. What challenges hinder greater success in maintaining City streets? The City of Pasadena’s 357-mile street network is a critical public asset that directly affects residents’ safety, mobility, and quality of life. The Department of Public Works (Public Works) is responsible for maintaining and rehabilitating this infrastructure through preventive maintenance, resurfacing, reconstruction, and related curb, gutter, and American with Disabilities Act (ADA) improvements. Public Works’ primary goals are to maintain and improve Pasadena’s public street infrastructure, ensuring safe, accessible, and efficient travel for vehicles, cyclists, and pedestrians, while supporting mobility, accessibility, and quality of life citywide. Effective stewardship of the street network requires sufficient funding, staffing, tools, and management systems.

To support t
hese goals, Public Works prepares an annual citywide street resurfacing and ADA Improvement Project Plan, which identifies the streets, sidewalks, and curbs to be improved.

The FY 2025 Plan, for instance, identified ten center-line miles across about 41 streets for improvement. Street improvement often includes resurfacing, new curb ramps for ADA compliance, sidewalk repairs, utility adjustments (manholes), pavement striping, and raised pavement markers, reflecting the City’s broader infrastructure and ADA objectives.

Funding for P
asadena’s street surfacing and maintenance activities comes from a variety of sources: State Transportation Gas Taxes, General Fund, Road Maintenance and Rehabilitation Account under the California Road Repair and Accountability Act of 2017 (SB1), and the Sewer Fund.

TAP I
nternational Inc. utilized multiple methods of analysis and review to perform the audit, including:

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Office of the City Manager
2 • Assessing the sufficiency of resources for street maintenance by reviewing program goals, policies and processes, financial data, staffing levels, equipment condition, and management systems and tools used to plan and monitor street maintenance activities, • Evaluating pavement condition data and the Pavement Management Plan, • Analyzing key performance metrics,
• Validating a sample of Pavement Condition Index (PCI) scores, and • Interviewing Public Works staff to identify operational and systemic challenges.

Audit F
indings and Recommendations:

TAP Int
ernational Inc. identified 3 audit findings and 11 recommendations, which when implemented will enhance the street paving and maintenance program. Management agreed with all the recommendations. The management response and corrective actions are included in the audit report as Attachment B.

The findings
recommend strengthening the City’s pavement management program by establishing a formal policy that defines goals, funding principles, equity standards, treatment strategies, and prioritization criteria; updating the 2020 pavement management plan; conducting a full PCI re-survey and creating written procedures for PCI collection, scoring, validation, and maintenance; and ensuring staff receive training in pavement evaluation and system use.

Additional improvements include implementing a proactive inspection schedule, developing succession and cross-training plans, enhancing asset management capabilities through Lucity or a dedicated pavement management system, creating a performance dashboard with key operational metrics, adopting service level agreements between departments to clarify roles and data-sharing expectations, and performing annual risk hotspot mapping.

Attachm
ents (1):

Attac
hment A – City of Pasadena Street Maintenance and Paving: Efforts Underway Amidst Challenges Audit

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March 2, 2026 Final Report
City of Pasadena Street Maintenance
and Paving:

Efforts Underway Amidst Challenges
Attachment A

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1 | P a g e
Contents
RESULTS IN BRIEF................................ ................................ ................................ ............ 3 What We Recommend .............................................................................................................. 4 BACKGROUND ................................ ................................ ................................ ................ 7 Pasadena Street Maintenance and Paving................................................................................ 7 Street Maintenance and Paving Goals ...................................................................................... 7 Organizational Framework for Street Maintenance and Paving ............................................... 9 Funding Sources ...................................................................................................................... 10 Project Approach ................................ ................................ ................................ .......... 10 Audit Objectives ...................................................................................................................... 10 Scope ....................................................................................................................................... 10 Methodology ........................................................................................................................... 10 KEY RESULTS ................................ ................................ ................................ ................ 14 Finding 1: Sufficiency of Resources Vary by Need .................................................................. 14 Finding 2: Public Works’ Control Environment has Key Gaps and Related Risks .................... 20 Finding 3: Multiple Challenges Limit the Effectiveness of the City’s Street Maintenance and Paving Activities ................................................................................................................ 23 APPENDIX A: Street Observations ................................ ................................ ................... 30 APPENDIX B: Agency Corrective Action Plan ................................ ................................ ..... 35

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2 | P a g e
Results in Brief

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3 | P a g e

RESULTS IN BRIEF
Why the Audit Matters
The City of Pasadena’s 357 mile street network is a critical public asset that directly affects resident safety, mobility, and quality of life. The Department of Public Works (Public Works) is responsible for maintaining and rehabilitating this infrastructure through preventive maintenance, resurfacing, reconstruction, and related curb, gutter, and American with Disabilities Act (ADA) improvements. Effective stewardship of the street network requires sufficient funding, staffing, tools, and management systems. This audit assesses whether those conditions currently exist.

How the Audit Was Conducted
The audit addressed three questions:

1. Are resources—funding, staffing, and management tools—adequate to maintain City streets?

2. Are clear policies and processes in place to guide maintenance and paving decisions?

3. What challenges hinder greater success in maintaining City streets? We evaluated Public Works’s financial resources, staffing levels, equipment, and management systems; reviewed policies, documentation, and decision-making processes; and examined internal controls and interdepartmental coordination. The audit also assessed systemic, organizational, and external factors affecting the Department’s efficiency and effectiveness.

What the Audit Found
While Public Works has taken meaningful steps to improve its street maintenance program, including replacing equipment and broadening available paving treatments, the sufficiency of resources depends on the type of departmental need. For example, despite the City’s efforts to supplement state revenue with General Fund revenue, funding levels remained below the 2019 consultant recommendation of about $13.6 million annually, increasing the risk of accelerated street deterioration. In another area, staffing levels are generally sufficient for current operations, but additional staff would be needed temporarily if the City expands its street rehabilitation efforts.

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4 | P a g e
Further, management tools, such as a comprehensive pavement plan and a reliable Pavement Condition Index that measure street conditions, require updating. The City needs formal policies to guide project selection, prioritization, and maintenance strategies.

These conditions as well as other constraints, such as the need for better data integration and policies to guide street selection for resurfacing risk prevention of safety risks. Between Fiscal Year (FY) 2023 and FY 2025, the City received 164 property and bodily injury claims resulting in over $7.5 million in total paid and estimated future payments and expenses related to deteriorated roadway and sidewalk conditions. Resulting financial settlements likely divert scarce city funds from preventive maintenance programs.

What We Recommend
The Director of Public Works should:

1. Adopt a written pavement management policy defining program goals, funding principles, treatment strategies, equity standards, and prioritization criteria, incorporating the Pavement Condition Index, traffic volumes, risk/claims data, ADA hazards, utility coordination, and equity considerations.

2. Update the 2020 pavement management plan that identifies target Pavement Condition Index levels, backlog reduction goals, annual treatment mileage, and resource needs.

3. Conduct a full Pavement Condition Index re-survey of all City-maintained roadways using a standardized methodology or a qualified consultant.

4. Develop written procedures for Pavement Condition Index collection, scoring, validation, update frequency, and database management.

5. Train assigned staff in technical pavement evaluation, distress scoring, and Pavement Condition Index software use to ensure ongoing data integrity.

6. Implement a proactive roadway inspection and monitoring schedule.

7. Develop a succession plan and structured training program for field personnel, including cross-training to preserve institutional knowledge.

8. Examine the feasibility of activating Lucity’s asset management and forecasting features and integrate it with the City’s GIS and Pavement Condition Index database, or a. Acquire or implement a dedicated Pavement Management System (PMS) capable of modeling treatment strategies and long-term budget scenarios.

9. Develop a formal performance dashboard with metrics such as:
• Cost per lane-mile resurfaced
• Cost per work order by type
• Proactive vs. reactive work percentages
• Average response time
• Backlog of streets in poor condition
• Material waste rates

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5 | P a g e

10. Adopt service level agreements (SLAs) clarifying roles, responsibilities, data-sharing requirements, and quality assurance expectations.

11. Conduct annual risk hotspot mapping and use results to guide preventive maintenance and capital improvements.

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6 | P a g e
Background
Project Approach

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7 | P a g e

BACKGROUND
Pasadena Street Maintenance and Paving
Public Works maintains approximately 357 centerline miles of paved streets within its jurisdiction. The street network is organized into functional classifications based on traffic volume, connectivity, and roadway characteristics, as described below:
• Principal Arterial (PART): These are the City’s primary cross-city corridors, typically two or four lanes in width and spaced at roughly one-mile intervals. Principal arterials carry more than 20,000 vehicles per day. They serve as the backbone of the City’s high-volume travel network.
• Minor Arterial (MnART): These streets provide cross-city or inter-district connectivity and are generally two to four lanes wide with centerline striping or designated bus routes. Daily traffic volumes typically range from 10,000 to 20,000 vehicles per day.

Minor arterials are commonly located on ½- or ¼-mile section lines and may include short non-landscaped medians.
• Collector (COL): Collector streets link local roads to the arterial network. They carry 1,000 to 10,000 vehicles per day and may contain centerline striping, bus routes, or limited landscaped medians. Major collector segments also serve areas adjacent to significant traffic generators, such as regional commercial centers. • Major Bus Routes: Arterial streets formally designated as primary transit corridors. • Minor Bus Routes: Collector streets designated to support transit service. • Local (LOC): Predominantly residential streets that make up the majority of the network and are not classified as arterial, collector, or industrial/commercial corridors.

This functional classification system provides the foundation for planning, prioritizing, and managing street maintenance and rehabilitation activities.

Street Maintenance and Paving Goals
Public Works’ primary goals are to maintain and improve Pasadena’s public street infrastructure, ensuring safe, accessible, and efficient travel for vehicles, cyclists, and pedestrians, while supporting mobility, accessibility, and quality of life citywide. The newly appointed Public Works Director established another goal to improve the condition of the City’s streets to about 80 (on a scale of one to 100).

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To support these goals, Public Works prepares an
annual citywide street resurfacing and Americans
with Disabilities Act (ADA) Improvement Project
Plan, which identifies the streets, sidewalks, and
curbs to be improved. For example, the FY 2024
Annual Citywide Street Resurfacing and ADA
Improvement Project Plan proposed to resurface up
to 44 streets totaling about ten center-line miles of
asphalt, including overlay, reconstruction, and spot
preventive maintenance (micro surfacing)1. The FY
2025 program likewise identified ten center-line
miles across about 41 streets for improvement, as
illustrated in Figure 2 below. We later describe in
this report that Public Works re-surfaced 11.5 miles.

Street improvement often includes resurfacing, new curb ramps for ADA compliance, sidewalk repairs, utility adjustments (manholes), pavement striping, and raised pavement markers, reflecting the City’s broader infrastructure and ADA objectives. 1 Micro-Surfacing. Micro-surfacing uses a similar mixture but incorporates chemical additives that allow it to harden more quickly, including under cooler or shaded conditions. It is often administered for streets with higher traffic volumes or limited sun exposure.

Figure 1: City Street Repair Activities
Figure 2: 2025 Pavement Resurfacing Plan

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Organizational Framework for Street Maintenance and Paving As shown in Figure 3, two of the five divisions within Public Works–Street Maintenance Division (Street Maintenance) and Engineering—are responsible for streets. Eighteen of the 75 Street Maintenance employees handle day-to-day operational tasks related to pavement and sidewalk repairs, such as pothole repairs, asphalt patching, sidewalk temporary patches2, and weed abatement.

Pavement and sidewalk maintenance tasks are linked to citizen service requests (via City Service Center’s online portal) for issues such as potholes or damaged sidewalks.

With a staff of two at the time of our review, the Engineering Division identified streets for resurfacing, maintained the Pavement Condition Index, contracted with street paving contractors, and performed project management.

Source: Public Works Engineering as of 01/05/2026
2 Permanent sidewalk repair is generally the property owner’s responsibility under municipal code.

Total FTE: 282
Capital Improvement Facilities Maintenance Civil
Program Budget Housekeeping Engineering Services
Department Operating Security Services Facilities
Budget Fleet Maintenance Street Lights &
Personnel Actions/Payroll Vehicle Replacement Traffic Signals Purchasing Inspections
Legislation Storm Water
Revenue & Expenditure Oversight
Grant Management
Internal Compliance
Citizens Service Center
Franchise Hauler Oversight Storm Drain & Sewer
Residential & Commercial Solid Waste Collection Street Light &Traffic Signal Maint.

Street Cleaning Traffic Sign Maintenance
Abandoned Items Traffic Signal Maintenance
Recycling Paving Markings
Code Enforcement - Public Right of Way Weed Abatement
Graffitti Abatement
Roadway Maintenance
PW Director
(1.00)
Administrative Services Division
(17.00)
Engineering
(51.00)
Building Systems & Fleet Management
(74.00)
Resources Recovery and Recycling
(64.00)
Street Maintenance Division
(75.00)
Figure 3: Public Works’ Organizational Chart

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Funding Sources
Funding for Pasadena’s Street Surfacing and Maintenance activities comes from the following funding sources.
• State Transportation Gas Taxes,
• General Fund, if funds are available
• Road Maintenance and Rehabilitation Account under the California Road Repair and Accountability Act of 2017 (SB1), and
• Sewer Fund. The City Council approves the capital improvement program for streets and streetscapes, providing for systematic annual rehabilitation of streets throughout the City. Figure 4 below shows a timeline of the City’s street rehabilitation activities. The timeline is illustrative (not exhaustive) and describes recent years and the scope of the work.

PROJECT APPROACH
Audit Objectives
The audit was designed to address three questions:

1. Are there sufficient resources—funding, staffing, and management tools—for maintaining City streets?

2. Are there clear policies and processes to guide street maintenance decisions?

3. What challenges, if any, prevent greater success in maintaining City streets? Scope
The audit covers the City of Pasadena’s street maintenance and rehabilitation activities for the four-year period from FY 2022 through FY 2025.

The scope addresses street/sidewalk/curb maintenance and paving only and does not extend to privately maintained roadways, state highways under the California Department of Transportation, or purely decorative or streetscape enhancement projects.

Methodology
To address the sufficiency of resources for street maintenance and paving activities, we conducted a myriad of activities, including:
• Assessment of the City’s financial, staffing, and management resources supporting street maintenance operations, including gathering and analyzing street inventory data, pavement management plans, and program goals obtained from the Public Works Department. This analysis compared budgeted allocations with actual expenditures and identified deferred maintenance backlogs.

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• Examination of the staffing sufficiency and organizational capacity by reviewing the workload distribution and roles and responsibilities of street paving personnel. We collected information on hiring challenges, staff turnover, and the impact of staffing levels on service delivery.
• Assessment of equipment to determine whether aging vehicles and tools constrained operational efficiency.
• Finally, the team assessed the adequacy of management systems and tools used to plan and monitor street maintenance activities. This included identifying and evaluating pavement management and work order systems, such as the Pavement Condition Index and Lucity, and determining whether these systems could link financial, street condition, and performance data.

To assess whether clear policies and processes guide street maintenance decisions, we examined how Public Works determines street paving and maintenance priorities. When documentation was unavailable, we relied on interviews with engineers, maintenance supervisors, and program managers to document existing informal practices.

A detailed review of condition assessment procedures was also conducted. The team examined how the Pavement Condition Index is calculated, updated, and used in decision-making. This included reviewing pavement survey documentation, evaluating data entry controls, and assessing the frequency of Pavement Condition Index updates. For a sample of streets (21), we coordinated with Public Works’ Engineers to assess the accuracy of pavement condition scores by reviewing underlying survey data or comparing selected scores with available field documentation.

The audit further included:
• Review of the City’s Pavement Management Plan (PMP) to determine whether it contains measurable goals and targets, including desired Pavement Condition Index levels, maintenance schedules by treatment type, and equity-based prioritization across neighborhoods.
• Analysis of reported metrics such as total lane miles treated, average Pavement Condition Index scores, and budget utilization.
• Computation of performance measures related to the timeliness of street maintenance work orders, including reviewing how work orders were scheduled, executed, and closed in the City’s maintenance management system.

To identify challenges that prevent greater success in maintaining City streets, we conducted interviews with Public Works staff responsible for street maintenance and paving to identify systemic, operational, and interdepartmental barriers that limit program performance. We evaluated the broader community impact of the street maintenance program by analyzing

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claims and injury data over time to determine whether trends in trip-and-fall incidents or property damage correlated with deteriorating pavement conditions.

We conducted this performance audit in accordance with The Institute of Internal Auditor guidance (Red Book). Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our examination objectives. A draft report was provided to Public Works management and Risk Management for review and comment. The Public Works Corrective Action Plan is included in Appendix B.

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o
Key Results

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KEY RESULTS
Finding 1: Resources Vary by Need
Funding Levels Are Below Recommended Levels
Public Works reported that of the City’s 357 miles of streets, 216 miles require paving and an additional 75 miles require maintenance. These figures indicate that nearly two‑thirds of the City’s street system needs significant repair or upkeep. Figure 4 illustrates the progress made by Public Works in resurfacing streets between FY 2023 and FY 2025. In FY 2025, Public Works spent $671,307 per mile to resurface 11.5 centerline miles of road, primarily with using one type of surface treatment: asphalt overlay.

Public Works’ progress in improving City streets largely depends on the funding available for resurfacing projects.

In 2020, the City’s consultant examining street pavement conditions provided multiple funding options for City consideration and to address the condition of streets.

These options ranged from not providing any budget, which would have increased the backlog of streets needing resurfacing, to fixing all the streets to accomplish a “very good rating” of 80 at a cost of $148.6 million, or in 2025 dollars, approximately $185.9 million. The Pavement Condition Index is measured on a scale of 0-100.

The City’s consultant ultimately recommended annual budget of $13.6 million, or $17.03 million in 2025 dollars, for five years to improve the City's Pavement Condition Index to 66 from the 0 2
4 6
8 10
12 14
16 18
FY 2023 FY 2024 FY 2025
Miles Paved
Fiscal Year
Figure 4: Miles of Streets Rehabilitated

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2019 average of 58 and to reduce the
backlog of streets needing resurfacing to 10
percent of total street miles. (See
Figure 5).

Based on the City’s Capital
Improvement Program (CIP), the City
variously approved funds for its Annual
Citywide Street Resurfacing and ADA
Improvement Program between FY
2022 and FY 2025, ranging from about
$3.75 million to about $11.0 million.
(See Figure 6). In FY 2026, the CIP had
included an initial recommended
budget of $5.9 million although Public
Works requested up to $11 million to
$15 million. The City Council later
approved the budget for $11,024,714.3
It is important to note that budget
information in the City’s financial
system, Tyler Munis, shows funding for
street resurfacing by project versus
fiscal year, and thus funding levels
could vary. For project year 2023, the City transferred in an additional $395,391 to the existing adopted CIP budget of $4.8 million (totaling $5,195,391). See Figure 7. 3 This amount included City Council action to allocate $4.3 million from the General Fund to the Capital Improvement Project as well as $775,000 of Road Maintenance Funds and $49,714 of remaining funds available from other completed CIPs.

Figure 5: Various Budget Levels Recommended by
2010 Consultant

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Source: City Tyler Munis Street Resurfacing Project Reports

With the current level of funding, the overall Pavement Condition Index rating of City streets equals the FY 2019 rating level of 58, according to the Public Works Director.

While we caution against direct comparisons with other agencies due to differences in rating systems and data reliability, other cities have similar or higher average Pavement Condition Index scores for their street networks, as shown in Figure 8. The continued progress made by Public Works for street rehabilitation increases the risk of street and sidewalk deterioration and increases the backlog of streets in poor condition.
3,750,000
4,800,000
11,000,000
10,200,000
5,900,000
0 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
FY 2022 FY 2023 FY 2024 FY 2025 FY2026
Amount ($)
Fiscal Year
3,750,000
5,195,391
11,000,000
10,200,000
11,024,714
0 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2022 (CIP 73933) 2023 (CIP 73938) 2024 (CIP 73938) 2025 (CIP 73944) 2026 (CIP 74948) Amount ($)
Street Resurfacing Project
Figure 6: Capital Improvement Program Adopted Funding Levels for Citywide Street Resurfacing and ADA Improvement Program
Figure 7: Funding by Street Resurfacing Project

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City Pavement Condition Score Effective Date
Riverside 48 2024
Santa Ana 76.3 2024
Long Beach 61 2025
Anaheim 71 2023
Placentia 79.7
$35.5 M in funding for FY 25-
26 2025
San Gabriel 85 2024
Sierra Madre 76 2023-24
Glendale 72 2021
Arcadia 53-61 2025
Pasadena 58 (reported) 2025
Source: Various City reports and publicly available information. Glendale is in the process of updating their PCI score and expects their current index to be below 72.

The Public Works Director, hired in December 2024, established a new goal to improve the overall pavement condition of streets to 80 by 2030 with an estimated cost of $25 million to $30 million annually. To generate funding to improve City streets, Public Works, in coordination with the Fire Department, is researching the potential of a future bond measure.

The Public Works Director aims to leverage current and future funding to implement a preventive strategy that prolongs pavement life and reduces the cost of full reconstruction by applying an array of cost-effective surface treatments. For example, the Public Works Director reported that introducing fiber-reinforced rubberized asphalt lowers the cost of concrete pavement restoration. The new strategy is to keep more miles of streets in good condition by using these less expensive treatments.

A 2023 California Statewide Local Streets and Roads Needs Assessment report reinforces the importance of the new approach by the Public Works Director, stating that “as roadway pavement conditions deteriorate, the cost to repair them increases exponentially. For example, it costs 14 times as much to reconstruct a pavement as to preserve it when it is in good condition. Even modest resurfacing is four times as expensive as maintaining pavement under moderate conditions. To put it another way, 14 miles of roadway can be maintained in a moderate condition for the same cost as reconstructing 1 mile of failed pavement”.

Public Works is Addressing Equipment Needs
Street maintenance generally requires specialized equipment to complete repairs, such as pothole patchers, excavators, cold planers, and motor graders. At the time of our review, Street Maintenance crews relied on manual tools such as shovels, jackhammers, picks, and a 28-year- Figure 8: Peer City Average Network

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old backhoe to remove and repair damaged pavement. A crew supervisor explained that using manual tools has led to employee injuries, reducing the availability of staff to perform street maintenance. Between January 2024 and March 2025, the City paid $428,122 for 33 workers’ compensation claims filed since 2015 by Street Maintenance employees for injuries sustained on the job.

Street Maintenance also needs a hot-box asphalt truck—an essential piece of equipment – that would allow crews to keep asphalt at the proper temperature for extended periods. Currently, with Public Works’ existing vehicle, large portions of asphalt are purchased for patching, which cools and hardens before use, resulting in significant material waste. In one year, we estimate the City discarded 153 tons (based on available disposal tickets) of asphalt costing about $39,443 based on available Public Works purchase estimates per ton. However, the financial impact of discarding unused asphalt is higher, including personnel costs (about $160 daily), transport costs (about $5,760 annually), and disposal fees (about $4,000 annually).

In addition, there is a resulting community impact leaving potholes unfilled. Under our own assumptions for a typical pothole – about 3 feet in diameter and 3 inches deep and discarding 180 tons of asphalt – the City with better equipment could avoid discarding unused material, filling an additional 1,190 to 1,400 potholes with the discarded asphalt.

In FY 2026, Public Works took steps to resolve this issue by purchasing a 2-ton hot box truck to be delivered in December 2026 that will prevent the asphalt from cooling and reduce waste, as well as an open cab bobcat with a water spray to help protect employees from silica dust resulting from excavation work, and a new concrete grinder. The Public Works Director also has plans to purchase a horizontal saw to help cut clean edges for street maintenance and repair non-working street-related equipment stored by the City.

Changes in Scope of Work Would Impact the Sufficiency of Staffing Levels Street Maintenance supervisors reported that staffing levels are generally sufficient for their current level of responsibilities, primarily due to the seasonal nature of their work, such as pothole repair during winter months. If responsibilities expand, such as assisting with larger- scale road rehabilitation projects, additional staffing would be required to sustain current performance levels. Similarly, one of Public Works’ two engineers responsible for street rehabilitation at the time of our review reported that staffing is sufficient for their current scope of annual street rehabilitation (about 10 centerline miles), but if Public Works significantly increased available funding for this work, additional staff would be needed temporarily to assist with efforts. The Public Works Director reported no plans to request permanent staff increases; instead, the Director intends to leverage existing staffing through team development and operational improvements.

Sufficient staffing is critical for public agencies to deliver services effectively, comply with statutory requirements, and mitigate operational risks. When resources are inadequate,

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agencies typically experience delays and reductions in service quality. The recent and former manager of Street Maintenance, with its 18-member crew, established informal goals to repair 5,000 potholes annually and complete pothole repair within one working day. As illustrated in Figure 9, the average estimated time to complete potholes was about 33 days in FY 2025, with a median of 10 days, and sidewalk repairs consistently required the longest completion time at an average 58 days, or a median of 19 days in FY 2025.4

Source: TAP International analysis of Public Works’ Work Order system data

4 Pages 21-22 describes accuracy concerns with the data. 5 17
4 9
7 20
6 8
6 19
5 10
0 5 10 15 20 25
Overall Service Time
Sidewalk Repair
Debris and Litter
Pothole Repair
Days
Service
Street Maintenance Division - Median Days to Complete Street/Sidewalk Related Activities, FY 23 to FY 25
FY 2025 FY 2024 FY 2023
Figure 9: Street Maintenance Street and Sidewalk Repair Timeliness

17.0 57.4

5.9 20.2

16.5 35.6

8.9 21.3

23.4 58.4

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Timeliness may improve as the Division fully deploys newly acquired equipment.

Staffing challenges are further compounded by the aging workforce. Crew supervisors noted that many field employees are approaching retirement eligibility. These staff bring significant institutional knowledge, yet the City lacks a formal succession plan or structured training program to ensure that their expertise is transferred to newer employees. Without such planning, the risk of knowledge loss and service disruption increases.

Finding 2: Public Works’ Control Environment has Key Gaps and Related Risks Central to an effective pavement management system is the establishment of policies, procedures, and governance documents, such as a pavement management plan, standard operating procedures to ensure data quality, and clear roles and responsibilities. Such a formal framework ensures that street maintenance activities are planned, executed, and monitored consistently to achieve the City’s performance and service goals.

As shown in Figure 10, Public Works’ pavement management activities could better align with best practices in roadway management. Without an enhanced framework, current activities raise various internal control risks. For example, the absence of policies and procedures, including data quality controls, means Public Works cannot demonstrate sufficient accountability or may experience challenges defending its decisions.

Pasadena Public Works Department Status Gap/ Risk
No pavement management policies or procedures
are in place, but efforts are underway for their
development.

Major gap. Absence of documented
policies undermines consistency and
accountability.

Defined relationships between Engineering and
Street Maintenance, but unclear between Water and
Power, Transportation and Parks and Recreation
Departments.

Partial compliance.

Interdepartmental gaps create risk
of duplication or neglect.

No formal procedures for ensuring data quality for
the Pavement Condition Index or work order system.

Severe gap. Without data quality
controls, PMS outputs are
unreliable.

In two of the three areas – governance and roles and responsibilities – the Public Works Director has steps to address the gaps and deficiencies by assigning senior-level engineers to develop policies and procedures.

For the remaining area, formal procedures directly related to ensuring data quality in the Pavement Condition Index and the work order system continue to constitute an internal control gap. There is a sufficient level of data variances and other anomalies that would affect the overall integrity and accuracy of any subsequent reporting, potentially adversely impacting decision-making information.

Figure 10: Comparison of Pasadena vs. Three Best Practices in Pavement Management

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This lack of policy documentation has led to variability in how maintenance requests are processed, with most handled reactively. Work orders in the Lucity system are also sometimes grouped and closed in batches with or without full documentation or photographic evidence of completion or supervisory review. Field crews occasionally rely on paper records for proactive work not captured in the system5. While some operational routines — such as pothole repair — are well understood among field personnel, how these needs are prioritized are not codified in formal written procedures.

The Pavement Condition Index is a widely used tool that records the condition of roadway segments on a scale of 0 to 100, ranging from very poor to excellent. Although the Pavement Condition Index is intended to serve as the City’s primary decision-support tool for prioritizing street maintenance, there is no documented procedure that defines how the index should be maintained, validated, or updated. Without database management guidance, there is a moderate/high risk that Pavement Condition Index values are not reflective of actual pavement conditions in the field, and at least 11 segments in the Pavement Condition Index were missed in the original analysis. Public Works staff identified a total 20.8 miles missing from the Pavement Condition Index. In our review of 21 street segments, some observed pavement conditions and corresponding Pavement Condition Index scores did not visually align, although formal reassignment and testing are required for verification. See Appendix A. As shown in Figure 11 below, Public Works qualitatively assessed five of the 21 streets and verified that their scores needed updating.

Figure 11: Current Street Conditions
Segment
Pavement
Condition
Index
score,
1/3/2020
Over ride
Pavement
Condition
Index
score*
Current
Pavement
Condition
Index ** Photo Evaluation
Westbridge
to South
Arroyo Blvd 72 none 62
Score may need
re-assessment
Mercury
Street from
Alameda 53 None 41
Score may need
re-assessment
5 Public Works plans to have repair crew use mobile devices to upload information and photos into Lucity.

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Palo Verde
from Loma
Vista to E.

Mountain
St. 37 None 25

Score may need
re-assessment
Nelson Aly
at N Sierra
Bonita 61 None 49

Score may need
re-assessment
* Override Pavement Condition Index Score. An estimated update to the Pavement Condition Index score from 1/3/2020 if repair or resurfacing work had been done on the street. ** Current Pavement Condition Index Score. An estimated Pavement Condition Index score to account for normal aging of the streets condition.

Several factors contributed to reliability concerns with the Pavement Condition Index:
• Recently resurfaced streets were not fully updated in the Pavement Condition Index to reflect improvements in all structural factors, such as subgrade strength or layer thickness.
• The Pavement Condition Index was updated in 2024 to reflect the condition of resurfaced streets since 2020, representing 640 of 3,498 street segments. Aging streets that have deteriorated since 2020 were not formally re-assessed to fully capture recent declines in surface or structural conditions.
• Absence of standardized testing procedures or specialized equipment needed to evaluate structural adequacy.
• During the time frame of our review, a Public Works Engineer now updates the Pavement Condition Index when pavement resurfacing occurs but reported difficulty in updating the average network score as new street segment scores are entered (due to lack of database knowledge), and noted other issues, such as the City streets currently absent from the database.

In the absence of formally established policies, resurfacing priorities are determined largely through informal practices, staff discretion, guidance established by an external consultant, and City Council or community requests. For the last two years, a different approach was used to identify streets planned for resurfacing of roadway under its Annual Citywide Street Resurfacing and ADA Improvement Program. Within the ten-mile plan, approximately half of the resurfacing—about five miles—was dedicated to City Council requests and customer complaints, and the other half was based on streets identified through the Pavement Condition Index report. In 2025, Public Works staff continued to set aside miles of street for City council

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requests and streets identified through the Pavement Condition Index, and added consideration of injury or vehicle claims, traffic volume, customer service requests, and management input. At the time of our review, the balance between reactive and preventive resurfacing work remained inherently weighted toward complaint-driven projects rather than a formalized system of pavement preservation. In contrast, the City of Los Angeles prohibits on-demand surfacing requests for individual streets and uses only a data-driven system to determine the street resurfacing schedule.

Finally, while Public Works includes equity considerations in sidewalk rehabilitation funded by Community Development Block Grants (CDBG), Public Works needs to develop formal policies that address how to incorporate equity considerations when selecting streets for resurfacing.

However, equity considerations are inherently addressed because Public Works responds to the needs of each City Council district, which collectively encompass all areas of the City.

Other cities have established formal frameworks for incorporating “equity” into their street selection decision-making. For instance, the City of San Diego considers locations within a census tract that is deemed eligible for CDBG, in a Promise Zone, or located in a Community of Concern identified per the climate equity index (very low, low, or moderate access to opportunity, per Council Policy).

Finding 3: Multiple Challenges Limit the Effectiveness of the City’s Street Maintenance and Paving Activities
Best practices in pavement management state that agencies need adequate funding, properly maintained equipment, and a trained workforce to implement pavement management plans effectively, including using a consistent, data-driven process to plan, prioritize, and fund pavement rehabilitation work. These guidelines are reinforced by the GAO’s Standards for Internal Control that call for clearly defined roles and responsibilities, reliable information systems, and adequate resources to achieve program objectives.

The City’s street paving program has multiple operational, resource, and coordination challenges, that if not addressed, could hinder its progress in improving the street network.

Key challenges include:

Insufficient Funding: As described earlier in this report, Public Works would require additional funding to improve the City’s overall Pavement Condition Index score to 80.

Need for Data Integration
Public Works relies on multiple disconnected systems for planning, tracking, and reporting street maintenance work. These systems include the Lucity information system, GIS, and MS Excel-based databases for the Pavement Condition Index. The Lucity information system can be used to perform budget and maintenance forecasting, integrating pavement condition data to

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help determine when and where to perform pavement rehabilitation, which rehabilitation techniques to use, and the ideal budget needed to accomplish maintenance goals. The department currently uses Lucity to record work orders and service requests, and staff explained that the Lucity system lacks the features the department needs, such as Pavement Condition Index management and full integration with the City’s GIS database.

Without a dedicated Pavement Management System to model the most cost-effective repair strategies, the department must rely on a manual process that considers pavement condition data, work order history, and risk indicators—such as complaints or claim-prone areas— in decision-making. Integrating this type of system with the City’s existing work order system (Lucity) would allow managers to track asset conditions, schedule maintenance, and monitor progress toward performance goals. Such integration would enhance transparency, enable data-driven decision-making, and provide a foundation for justifying future funding requests.

System Processes Need Development to Become More Proactive in Street Repair and Rehabilitation
Roadways are vulnerable to structural degradation due to multiple factors, including material wear from heavy traffic loads, extreme weather conditions, and insufficient maintenance.

Regular inspection and maintenance are essential for extending pavement life.

The Street Maintenance Division lacks a formal, systematic process for identifying roadway and sidewalk maintenance needs. Instead of conducting formal, data-driven assessments, maintenance activities are largely reactive—triggered by public complaints or service requests, maintenance supervisors reported that they will send a crew out to known “hot spots” when all work orders have been completed. This absence of proactive monitoring delays the identification of pavement defects and increases the risk of accelerated roadway deterioration.

Presently, the Engineering Unit does not formally monitor pavement condition quality in the City’s street network, which would provide updated data on pavement wear, traffic loads, and environmental impacts, enabling prioritization of repairs and better resource allocation. Adding these responsibilities, however, would require specialized engineering knowledge, technical equipment operation skills, and strong data analysis abilities. Each of the two engineers responsible for street rehabilitation identified a need to increase their knowledge about pavement management and assessment of street conditions.

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Performance Monitoring Systems are Needed
Performance measurement
systems provide a systematic
method for agencies to track
progress toward goals, assess
outcomes, and inform
decision-making. Such systems
are based on defining goals,
collecting and assessing data,
and communicating the results
to inform decision-making, as
depicted in Figure 12.

For street maintenance
activities, a performance
measurement framework has
not yet been developed, and
metrics are not generally
tracked other than the number
of potholes completed
annually. Although Public Works has a work order system that provides the data needed to compute multiple performance measures, staff have not formally used this information to monitor their performance.

In contrast, Public Works has developed performance metrics for street rehabilitation activities.

These metrics include, for example:
• Average Pavement Condition Index score citywide
• Miles of roadways resurfaced annually
• Annual and 5-year total, % of systemwide surface area resurfaced • Reduction in resident complaints and claims related to street conditions • % complete – new ramps constructed vs. locations with no ramps.

Other metrics that could benefit Public Works include
• Unit cost per lane-mile surfaced by type of surface treatment • Average work order completion time
• % change of street miles backlogged
• % change of waste material percentage
Figure 12: Key Practices to Help Effectively Implement
Performance Management Activities

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These metrics could provide management and policymakers with clear evidence of program efficiency and outcomes over time. The Public Works Director ultimately plans to develop a dashboard to track performance measures by district.

Political Pressures
Street paving can be influenced by the community. Council requests to respond to constituency needs and resident complaints can alter annual paving schedules (resulting in changes that deviate from data-driven priorities). Although these adjustments are well-intentioned, they reduce the consistency of project selection and diminish the program's overall efficiency by fragmenting work across locations rather than focusing on data-driven decision-making.

Need for Better Interagency Coordination
Coordination challenges further hamper program planning that Public Works has worked to resolve. Although coordination among departments—such as Public Works, the Water and Power Department, Transportation, and Parks—is improving through interdepartmental meetings, the City does not maintain service-level agreements between departments that outline roles and responsibilities for information sharing and project coordination. The absence of these types of agreements has led other agencies to not perform information sharing to Public Works regarding testing of trench restoration compaction so that Engineering can assess the quality of work for future street rehabilitation planning. Without better coordination, Public Works could face additional costs to restore pavement quality following trenching.

Outdated Street Maintenance Processes
The lack of key management tools has affected the City’s ability to plan and manage work strategically, largely due to the absence of proactive planning mechanisms that would enable preventive maintenance rather than reactive responses to street maintenance. Public Works does not maintain a formal preventive maintenance schedule tied to pavement condition data.

Instead, maintenance crews operate in a “first in, first out” or “worst first” environment, which perpetuates a cycle of short-term fixes rather than long-term pavement preservation.

Street Maintenance Challenges Influence Ongoing Community Safety Impacts The number of claims submitted to the City for vehicle damage or bodily injury from poor pavement or sidewalk/curb conditions has declined from FY 2024, as shown in Figure 13, returning to FY 2023 levels. Between FY 2023 and FY 2025, the City received 164 claims related to street and sidewalk disrepair, which represented between 13 to 25 percent of all claims filed against the City for these years.

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Figure 13: Number of Public Works Claims by Type (Bodily Injury or Property Damage) and Cause
FY 2023 FY 2024 FY 2025 Total
Property Damage 31 39 26 96
Improper Road Design - Bike Lane 1 1
Improper Road Design - Signage 1 1
Improper Road Design Or Dangerous Cond 4 2 2 8
Improper Road Maintenance -
Construction Zone
5 2 7
Improper Road Maintenance - Pothole 25 18 17 60
Premises Liability - Other 2 5 7
Premises Liability - Sidewalk - Other 6 2 8
Premises Liability - Trees 1 2 3
Property Damage Only (Non-Auto) 1 1
Bodily Injury 14 40 14 68
Improper Road Design - Crosswalk 2 2
Improper Road Design Or Dangerous Cond 4 2 1 7
Improper Road Maintenance -
Construction Zone
2 2
Improper Road Maintenance - Lighting 1 1
Improper Road Maintenance - Pothole 1 1 2 4
Premises Liability - Other 1 2 3
Premises Liability - Sidewalk - Other 8 30 11 49
Grand Total 45 79 40 164
Sidewalk/curbside incidents account for 35 percent of all Public Works claims received (164) by the City, while potholes are the primary cause of claims received for property damage to vehicles, accounting for about 37 percent of claims received. The remaining claims received are related to improper road design, other sidewalk issues, and street-related conditions.

The cost of bodily injury and vehicle claims arising from street and infrastructure conditions have tangible community impacts. Of 164 claims, 48 of them will likely cost the City up to $7.5 million. This includes amount for actual payments and expenses and estimated future losses and expenses. The resulting financial settlements divert scarce funds from preventive maintenance programs to liability payments.

The financial costs could increase when claims are reopened. As shown in Figure 14 below, the number of reopened claims for improper road maintenance and sidewalks peaked in FY 2024, representing 40 percent of closed claims (22/56), before falling to 14 percent in FY 2025 (5/35).

Re-opening claims suggest that the claimant has elected to pursue recovery for their loss through litigation.

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28 | P a g e
Presently, Public Works has not fully integrated risk data—such as claims, ADA trip hazards, or accident locations—into its prioritization process in identifying and selecting streets for resurfacing. As a result, high-risk locations are not systematically included in pavement resurfacing planning, such as Pasadena Avenue (Figure 15), which had three vehicle claims filed in FY 2025 despite having some pavement resurfaced.
0 1 0
40 56
35 5
22 5
0 10
20 30
40 50
60 FY 2023 FY 2024 FY 2025
Number of Claims
Fiscal Year
Open Claims Closed Claims Reopened Claims
Figure 15: Pasadena Avenue
Pavement Condition
Figure 14: Number of Claims by Status

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29 | P a g e
Appendix A – Street Observations
Appendix B – Agency Corrective Action
Plan

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30 | P a g e
APPENDIX A: STREET OBSERVATIONS
Street
Segment
Pavement
Condition
Index Score,
1/3/2020
Over ride
Pavement
Condition
Index Score*
Current
Pavement
Condition
Index Score
**
Photo Evaluation
Alameda
from Mercury
Lane to
Sierra Madre
Villa 86 none 79
Leeds Alley
from E Villa
St to Del Rey 38 57 55
Score may
need re-
assessment
Adelaid
Drive, from
Loma Vista
Street to E.

Mountain
Street 48 none 35
Score may
need re-
assessment

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31 | P a g e
Street
Segment
Pavement
Condition
Index Score,
1/3/2020
Over ride
Pavement
Condition
Index Score*
Current
Pavement
Condition
Index Score
**
Photo Evaluation
Santa Paula
Street to
Alameda 54 none 42
Arden Road
from S.

Mentor to
Oak Grove 46 96 93
E. Glen Arm
from Barker
Aly to S.

Oakland Ave 50 92 91
Score may
need re-
assessment
N. Arroyo
from
Rosemont to
210 EB 48 96 96
Score may
need re-
assessment

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32 | P a g e
Street
Segment
Pavement
Condition
Index Score,
1/3/2020
Over ride
Pavement
Condition
Index Score*
Current
Pavement
Condition
Index Score
**
Photo Evaluation
S. Arroyo
from Arbor to
Westbridge
Pl 50 88 84
S. Arroyo
from
Westbridge
to
Westminster 50 88 84
Westminster
to Arroyo 47 none 35

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33 | P a g e
Street
Segment
Pavement
Condition
Index Score,
1/3/2020
Over ride
Pavement
Condition
Index Score*
Current
Pavement
Condition
Index Score
**
Photo Evaluation
Arden Rd
from S.

Wilson to
Rosalind 51 88 86
Birch Ln from
Elm Ln to
North End 49 88 86
E. Glenarm
Street from
Madison to
S. El Molino 55 92 92
El Nido
Avenue from
Millicent to
E. Del Mar
Blvd 35 100 97

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34 | P a g e
Street
Segment
Pavement
Condition
Index Score,
1/3/2020
Over ride
Pavement
Condition
Index Score*
Current
Pavement
Condition
Index Score
**
Photo Evaluation
El Nido to
Oneida to
Millicent
Way 45 100 97
* Override Pavement Condition Score. An estimated update to the score from 1/3/2020 if repair or resurfacing work had been done on the street.
** Current Pavement Condition Index Score. An estimated score to account for normal aging of the streets condition.

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35 | P a g e
APPENDIX B: Agency Corrective Action Plan

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City
of Pasadena Street Maintenance and Paving
Correcve Acon Plan
Audit Recommendaon Proposed Acon Target Compleon
Date

1. Adopt a wrien pavement management
policy deﬁning program goals, funding
principles, treatment strategies, equity
standards, and priorizaon criteria,
incorporang the Pavement Condion
Index, traﬃc volumes, risk/claims data,
ADA hazards, ulity coordinaon, and
equity consideraons.

The Department of Public Works, Engineering
Division is in the process of development the
policies and procedures for citywide street
management.

December
2026

2. Update the 2020 pavement management
plan that idenﬁes target Pavement
Condion Index levels, backlog reducon
goals, annual treatment mileage, and
resource needs.

The Department of Public Works, Engineering
Division is in the process of procuring an updated
proposal from LA County to resurvey the enre
City and provide an updated database. From the
updated database, a new pavement management
plan will be generated to address goals, resource
needs, etc.

Fall 2027

3. Conduct a full Pavement Condion Index
re-survey of all City-maintained roadways
using a standardized methodology or a
qualiﬁed consultant.

The Department of Public Works, Engineering
Division is in the process of procuring an updated
proposal from LA County to resurvey the enre
City and provide an updated database. LA County
has indicated that it will take them 12 months to
complete the City survey and provide a report.

April 2027

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4. Develop wrien procedures for Pavement
Condion Index collecon, scoring,
validaon, update frequency, and
database management.

The Department of Public Works, Engineering
Division is in the process of developing the
policies and procedures for citywide street
management.

December
2026

5. Train assigned staﬀ in technical pavement
evaluaon, distress scoring, and Pavement
Condion Index so8ware use to ensure
ongoing data integrity.

The Department of Public Works, Engineering
Division is in the process of developing the
policies and procedures for citywide street
management which will include training
guidelines and technical resources.

December
2026

6. Implement a proacve roadway inspecon
and monitoring schedule.

This inspecon would be implemented
approximately one year a8er LA County has
completed their re-assessement. Presumably
then, we would start to noce if there are any
diﬀerences in the street condion.

April 2028

7. Develop a succession plan and structured
training program for ﬁeld personnel,
including cross-training to preserve
instuonal knowledge.

The Department of Public Works, Street
Maintenance Division will work on cross-training
and developing training resources for succession
planning.

December
2026

8. Examine the feasibility of acvang
Lucity’s asset management and
forecasng features and integrate it with
the City’s GIS and Pavement Condion
Index database, or
The Department of Public Works, Engineering
Division is currently working with the assigned
DoIT representave for Central Square, Enterprise
Asset Management (they acquired Lucity) to
develop a work order system to more eﬀecvely
communicate repair needs to City crews and log
the repairs and histroy
June 2027
a. Acquire or implement a dedicated
Pavement Management System
(PMS) capable of modeling
treatment strategies and long-term
budget scenarios.

The Department of Public Works,
Engineering Division has met with
potenal vendors that oﬀer modeling
capabilies for treatment strategies and
long-term budget scenarios. A proposal
June
2027

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has been requested to determine
feasibility of acquiring the so8ware

9. Develop a formal performance dashboard
with metrics such as:

As menoned in 8 and 8a. June 2027
• Cost per lane-mile resurfaced
• Cost per work order by type
• Proacve vs. reacve work
pe
rcentages
• Average response me
• Backlog of streets in poor
co
ndion
• Material waste rates

10. Adopt service level agreements (SLAs)
clarifying roles, responsibilies, data-
sharing requirements, and quality
assurance expectaons.

Execuve management of the various
departments to discuss and develop a
memorandum of understanding of each
departments responsibilies.

June 2027

11. Conduct annual risk hotspot mapping and
use results to guide prevenve
maintenance and capital improvements.

The City already has a HeatMap so8ware
(Origami) which tracks this informaon. Public
Works, Engineering Division has been given
access to the so8ware and will proacvely be
ulizing the data to determine high risk areas
On-going

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City of Pasadena Street Maintenance and
Rehabilitation Performance Audit
Audit Committee Meeting, Item 5
March 23, 2026

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2 Background
• 357 center line miles of streets.
• Stre
et Maintenance and Paving Goals - Maintain and improve
Pasadena’s public street infrastructure, ensuring safe, accessible, and efficient travel for vehicles, cyclists and pedestrians, while supporting mobility, accessibility and quality of life city-wide. • Accomplish an overall pavement condition score of 80 (Scale: 0 - 100)

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3 Audit Objectives

1. Are resources—funding, staffing, and management tools—adequate to maintain City streets?

2. Are clear policies and processes in place to guide maintenance and paving decisions?

3. What challenges hinder greater success in maintaining City streets?

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4 Finding 1: Resources Vary by Need
Area
Funding
Staffing
Management Tools

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5 Finding 1: Resources Vary By Need
Funding levels for street resurfacing
remain below recommended levels.

Recognizing this, past city council
action have used General Fund
revenue to support street resurfacing
projects.

A 2019 hired consultant previously
estimated that Pasadena would need
about $13.6 million annually, or
roughly $17 million in today’s dollars,
to improve the City’s pavement
condition and reduce the backlog of
deteriorating streets.
3,750,000
5,195,391
11,000,000
10,200,000
11,024,714
0 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2022 (CIP 73933) 2023 (CIP 73938) 2024 (CIP 73938) 2025 (CIP 73944) 2026 (CIP 74948) Amount ($)
Street Resurfacing Project
Funding by Street Resurfacing Project

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6 Finding 1: Resources Vary By Need
Current staffing is reported as being adequate for existing workloads for both street maintenance and engineers responsible for overseeing street resurfacings under their current scope of responsibilities.

Timeliness of street maintenance varies by the type of work.

17.0 57.4

5.9 20.2

16.5 35.6

8.9 21.3

23.4 58.4

9.2 32.9
- 10.0 20. 0 30.0 40.0 50.0 60.0 70.0
Overall Service Time
Sidewalk Repair
Debris and Litter
Pothole Repair
Days
Service
Street Maintenance Division - Average Days to Complete
Street/Sidewalk Related Activities, FY 23 to FY 25
FY 2025 FY 2024 FY 2023
5 17
4 9
7 20
6 8
6 19
5 10
0 5 10 15 20 25
Overall Service Time
Sidewalk Repair
Debris and Litter
Pothole Repair
Days
Service
Street Maintenance Division - Median Days to Complete
Street/Sidewalk Related Activities, FY 23 to FY 25
FY 2025 FY 2024 FY 2023

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7 Finding 1: Resources Vary By Need
Equipment constraints have affected operational efficiency. • For example, crews lacked a hot-box asphalt truck, causing asphalt to cool and be discarded before use.
• In one year, about 153 tons of asphalt were discarded, representing both financial waste and lost opportunities to repair potholes.
• Public Works has purchased a hot box truck for repairing potholes this year that could translate to repairing over 1000 additional potholes through preventing having to discard unused asphalt.

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8 Finding 2: Public Works' Control Environment Has Key Gaps and Related Risks
Pasadena Public Works
Department Status
Gap/ Risk
Need for pavement management
policies or procedures are in
place, but efforts are underway
for their development.

Absence of a formal
pavement management
plan
Defined relationships between
Engineering and Street
Maintenance, but unclear
between Water and Power,
Transportation and Parks and
Recreation Departments.

Interdepartmental gaps
create risk of
duplication or neglect.

Need for database management
procedures.

Without data quality
controls, PMS outputs
are unreliable.

The DPW Director has
taken responsibility or
has delegated staff to
address the gaps and
deficiencies related to
street maintenance and
rehabilitation.

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9 Finding 3: Multiple Challenges Limit the Effectiveness of the City’s Street Maintenance and Paving Activities
Challenges:
 Funding
 D
ata integration between information
systems
 Reactive versus proactive street
maintenance
 Program performance monitoring
 Well-intended political pressures
 Interagency coordination
 Street maintenance processes
Effect:

The number of claims
submitted to the City for
vehicle damage or bodily
injury from poor pavement
or sidewalk/curb conditions
has declined from FY 2024,
the City received 164 claims
related to street and
sidewalk disrepair, which
represented between 13 to
25 percent of all claims filed
against the City between FY
2023 and FY 2025.

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10 Recommendations

1. Adopt a written pavement management policy defining program goals, funding princ
iples, treatment strategies, equity standards, and prioritization criteria, incorporating the Pavement Condition Index, traffic volumes, risk/claims data, ADA hazards, utility coordination, and equity considerations.

2. Update the 2020 pavement management plan that identifies target Pavement Condition Index levels, backlog reduction goals, annual treatment mileage, and resource needs.

3. Conduct a full Pavement Condition Index re-survey of all City-maintained roadways using a standardized methodology or a qualified consultant.

4. Develop written procedures for Pavement Condition Index collection, scoring, validation, update frequency, and database management.

5. Train assigned staff in technical pavement evaluation, distress scoring, and Pavement Condition Index software use to ensure ongoing data integrity.

6. Implement a proactive roadway inspection and monitoring schedule.

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11 Recommendations

7. Develop a succession plan and structured training program for field personnel, including cro
ss-training to preserve institutional knowledge.

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12 Recommendations

10. Adopt service level agreements (SLAs) clarifying roles, responsibilities, data-shar ing requirements, and quality assurance expectations.

11. Conduct annual risk hotspot mapping and use results to guide preventive maintenance and capital improvements.

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NEW BUSINESS
ITEM 3

3. APPROVE AMENDMENTS TO FISCAL YEAR 2026 CAPITAL

IMPROVEMENT PROGRAM

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TO:

THROUGH:

FROM:

SUBJECT:

Agenda Report
April 13, 2026
Honorable Mayor and City Council
Finance Committee
Department of Public Works
APPROVE AMENDMENTS TO FISCAL YEAR 2026 CAPITAL

IMPROVEMENT PROGRAM
RECOMMENDATION:

It is recommended that the City Council:
1 . Find that the proposed actions are not "projects" as defined in the California Environmental Quality Act (CEQA), Public Resources Code Section 21065 and Section 15378(b)(4) and (5) of the State CEQA Guidelines and, as such, are not subject to environmental review; and

2. Approve Amendments to the Fiscal Year 2026 Capital Improvement Program (CIP) Budget as detailed in Attachment A of this report.

BACKGROUND:

Throughout the fiscal year, the Department of Public Works in conjunction with other impacted departments reviews active CIP projects to determine if budgetary changes are needed. Staff has completed this report detailing needed budget adjustments as detailed on Attachment A. The budgetary changes to the projects are listed below.

1. Vina Vieja Pickleball Courts (78086) - The Department of Public Works recommends recognizing and appropriating $89,041 in Measure A (East) funds to this project and increasing the budget by a like amount. Los Angeles County Regional Park and Open Space District (RPOSD) awarded $589,041 in Measure A (East) funds for this project but only $500,000 was appropriated. This action will correct the project budget.

2. Central Park Lawn Bowling Clubhouse (78091) - The Department of Public Works recommends appropriating $585,502 in Insurance Proceeds to this project. This funding was received from Public Entity Property Insurance Company in satisfaction of a claim for damages from a tree falling on the Central Park Lawn Bowling MEETING OF _____ _ AGENDA ITEM NO. ____ _

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Approve Amendments to FY 2026 CIP Budget
April 13, 2026

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soft costs and overhead expenses that are not eligible expenses to be covered by the grant. This project is currently in the outreach and design phase, with construction anticipated to begin in FY 2027.

11. Two-Way Traffic Conversion - Mentor Ave from Walnut St to Colorado Blvd - Feasibility Study (75918) - The Department of Transportation recommends appropriating $103,000 in Street Occupancy Rental Fees to fully fund this project to initiate the feasibility study and concept design phase.

12. El Molino Quick-Build Greenway Demonstration (75929) - The Department of Transportation recommends appropriating $1,556,520 in Federal Highway Administration Safe Streets and Roads for All grant funds and a local match of $389,130 Traffic Reduction Fee funds for a total appropriation of $1,945,650 to this project. This appropriation is for outreach, design and implementation of quick-build improvements. This action will allow for the quick-build to start in FY 2026 so it aligns with the work being completed under the Greenway Implementation project which is currently underway. The quick-build will inform the permanent improvements anticipated for the Greenways El Molino corridor. Design will begin in FY 2026 with construction anticipated to begin in FY 2027.

13. Purchase of Dial-A-Ride Vehicles (75086) - The Department of Transportation recommends appropriating $4,434 in Proposition C - Low Carbon Transit Operations Program (LCTOP) grant funds to this project. The grant funds were previously appropriated to the Proposition C Local Transit Fund in FY 2024. These LCTOP grant funds were received from the City of Montebello's FY 2022 LCTOP allocation for the Pasadena purchase of one 23-foot battery electric bus. This action will correct the project budget and ensure compliance with grant conditions and support the timely acquisition of vehicles for Pasadena Dial-A-Ride service.

14. Purchase of Zero-Emission Pasadena Dial-A-Ride Vehicles and Supporting
Infrastructure (75930) - The Department of Transportation recommends transferring $1,050,000 in FTA 5310 Enhanced Mobility of People with Disabilities grant funds; $500,000 in MTA Grant - Local Transit System Subcommittee Zero Emission grant funds; $392,000 in Transit and Intercity Rail Capital Program Grant funds; and $376,258 in Low Carbon Transit Operations Program Grant funds for a total appropriation of $2,318,258 from the Purchase of Dial-A-Ride Vehicles (75086) project to this project. DOT established this new project to fund the transition of the Pasadena Dial-A-Ride fleet from internal combustion engine vehicles to zero emission
vehicles. This project will advance the City's commitment to sustainable and accessible transportation.

15. Bus Stop Improvement Program (75900) - The Department of Transportation recommends appropriating $37,780 in Foothill Transit Bus Stop Enhancement Grant funds to this project. DOT was awarded the grant to install bus stop amenities, including benches and/or accessible real time arrival information systems, at five bus stops in Pasadena. This work will begin in FY 2026.

16. Systemwide Bus Zone Enhancements (75931) - The Department of Transportation recommends transferring $251,165 in Low Carbon Transit Operations

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Public Works Department
APPROVE AMENDMENTS TO FISCAL YEAR 2026

CAPITAL IMPROVEMENT PROGRAM
Finance Committee/City Council
April 13, 2026
Item 3

Page 119 ends

Public Works Department
Recommendations

1. Find proposed actions are not “projects” as
defined
in CEQA, Public Resources Code Section
21065 and Section 15378(b)(4) and (5) and, as
such, are not subject to environmental review

2. Amend FY 2026 CIP Budget as detailed in
Atta
chment A of the report

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Public Works Department
Projects
3 Project Funding Source Change ($)
1 Vina Vieja Pickleball Courts (78086) Measure A (East) $89,041 2 Central Park Lawn Bowling Clubhouse (78091) Insurance Proceeds $585,502 3 Hale Building Interior Remodel - Phase II (71170) Building Services Fund $300,000 4 Annual Citywide Street Resurfacing and ADA Improvement Program FY 2023/2024 (73938)
Private Capital
Sewer Fund
$16,834
$4,367

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Public Works Department
Projects
4 Project Funding Source Change ($)
5 Annual Citywide Street Resurfacing and ADA
Improvement Program FY 2025 (73944)
Other County
Reimbursement
$8,710
6 Street Lighting Program FY 2024 - 2028 (74422)
Street Lighting Program (74413)
Private Capital
Private Capital
$225,181
($52,053)
7 Building Maintenance Fund 2026-2030 (71931)
Building Maintenance Fund 2021-2025 (71903)
Building Preventive
Maintenance Fund
Building Preventive
Maintenance Fund
$2,681,840
($2,681,840)
8 Annual Storm Drain System Repair (76913) Sewer Fund $18,030

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Public Works Department
Projects
5 Project Funding Source Change ($)
9 Citywide Parks Improvement Program FY 2025 – 2029
(78092)
Residential Impact Fee $56,500
10 Lake Ave Traffic and Pedestrian Safety Enhancements
from Mountain St to Maple St (75105)
Traffic Reduction Fees $500,000
11 Two-Way Traffic Conversion - Mentor Ave from Walnut St to Colorado Blvd - Feasibility Study (75918)
Street Occupancy
Rental Fees
$103,000
12 El Molino Quick-Build Greenway Demonstration (75929) FHWA SS4A grant Traffic Reduction Fees
$1,556,520
$389,130

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Public Works Department
Projects
6 Project Funding Source Change ($)
13 Purchase of Dial-A-Ride Vehicles (75086) Low Carbon Transit Operations Program Grant
$4,434
14 Purchase of Zero-Emission Pasadena
Dial-A-Ride Vehicles and Supporting
Infrastructure (75930)
Purchase of Dial-A-Ride Vehicles (75086)
• FTA 5310 Enhanced Mobility of
People with Disabilities
• MTA Grant - Local Transit System
Subcommittee Zero-Emission
• Transit and Intercity Rail Capital
Program Grant
• Low Carbon Transit Operations
Program Grant
• FTA 5310 Enhanced Mobility of
People with Disabilities
• MTA Grant - Local Transit System
Subcommittee Zero-Emission
• Transit and Intercity Rail Capital
Program Grant
• Low Carbon Transit Operations
Program Grant
$1,050,000
$500,000
$392,000
$376,258
Total $2,318,258
($1,050,000)
($500,000)
($392,000)
($376,258)
Total ($2,318,258)

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Public Works Department
Projects
7 Project Funding Source Change ($)
Tot
al
Bus Stop Improvement Program (75900) Foothill Transit Bus Stop Enhancement Grant
$37,780
16 Systemwide Bus Zone Enhancements (75931)
Bus Stop Improvement Program (75900)
• Low Carbon Transit
Operations Program
Grant
• Measure M MSP
• Transit and Intercity Rail
Capital Program Grant
• Low Carbon Transit
Operations Program
Grant
• Measure M MSP
• Transit and Intercity Rail
Capital Program Grant
$251,165
$597,016
$1,166,000
Total $2,014,181
($251,165)
($597,016)
($1,166,000)
Total ($2,014,181)
17 Pasadena Bicycle Program FY 2021-2025 (75111)
Pasadena Bicycle Program FY 2026-2030 (75919)
TDA Article 3
TDA Article 3
$12,908
($12,908)

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Public Works Department
Projects
8 Project Funding Source Change ($)
18 Purchase of Zero-Emission Pasadena
Transit Vehicles and Supporting
Infrastructure (75932)
Proposition A Local Transit Fund
Proposition C Local Transit Fund
$1,349,491
$233,491
$1,582,982
19 GT-3 and GT-4 Capital Equipment
Refurbishments (3186)
Rainwater Capture and Recycling (3197)
Power Fund
Power Fund
$404,993
($404,993)
20 Conductor Replacement Program (3226)
Subtransmission Cable Upgrade 34-20 (3276)
Underground Utilities Fund
Underground Utilities Fund
$199,805
($199,805)

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Public Works Department
Projects
9 Project Funding Source Change ($)
21 Distribution Transformer Replacement Program (3237)
Subtransmission Cable Upgrade 34-30 (3281)
Power Fund
Power Fund
$1,900,000
($1,900,000)
22 Purchase of Vehicles and Equipment - Water Fund (1600) Treatment Systems (1091)
Water Fund
Water Fund
$180,000
($180,000)

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Public Works Department
Fiscal Impact
• Net increase to the FY 2026 CIP Budget by
$5,425,958
• No Impact to the General Fund
10

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NEW BUSINESS
ITEM 4

4. AMEND FY 2026 OPERATING BUDGET OF THE ECONOMIC

DEVELOP
MENT DIVISION TO AWARD 2025 DISASTER RELIEF

FUNDS FOR MICRO-ENTERPRISES

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Community Development Block Grant (CDBG):

Disaster Relief Funds for Microenterprises
April 13, 2026
Finance Committee

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CDBG Grant Timeline
2 • CDBG Application (Feb 2025): EconDev applied for City Set-Aside grant funds via Housing Department.
• City Council Approval (May 2025): Approved $200,500 for the Commercial Façade Improvement Program, and $125,500 for Microenterprise Recovery Grants via the Housing Department.
• Federal Update (July 2025): Executive order temporarily paused federal fund use.
• EdTech Update (Aug 2025): Shared program updates.
• Federal Funds Received (Dec 2025): Housing Department received HUD funds. • Façade plans in review (On-going): City departments including Housing Department are reviewing all improvement plans submitted by selected grantees.
• Applications Open (March 19, 2026): Microenterprise Recovery Grant program. • Applications Closed (April 16, 2026): Microenterprise Recovery Grant program. • Council Approval to amend Office of the City’s Managers FY26 Operating Budget (April 2026)

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Microenterprise Recovery Grant
3 • Summary: The program will assist local, low-to-moderate income, micro- enterprises impacted by the 2025 Eaton wildfires and windstorm. Microenterprises are those with 5 employees or less including owners.
• Eligible use of funds: Reimbursement-based grant to cover overhead and operational cost, rent and utilities, business inventory, salary and wages for employees, and marketing.
• Amount: Anticipate awarding a total of 25 micro-enterprises up to $5,000 each. $125,000 is available via CDBG funding.
• Status: Applications open March 19, 2026, and close April 16, 2026. • Eligible Applicants: Per HUD guidelines, eligible applicants are businesses that operate from a brick-and-mortar location within Pasadena city limits, qualify as a microenterprise with five or fewer employees (including owners), and have owners whose income is below 80% of the Area Median Income (AMI).

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Grant Information & Outreach
4 Information will be shared via our newsletter, a press release, liaisons, and direct emails to encourage businesses to apply. Information will be posted on our web page with an application link and guidelines.

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End of Presentation
5

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INFORMATION ONLY
ITEM 5

5. REPORT ON CITY PROCUREMENT- FISCAL YEARS 2023
THROUGH 2025

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City Procurement Report
April 13, 2026

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including the Library, Human Resources, and Housing, demonstrating effective engagement with diverse vendors in service-oriented procurements.

DEPARTMENTS TOTAL M/WBE M/WBE %
Pasadena
Businesses
Pasadena
Businesses %
CITY ATTORNEY $7,721,202 $2,065,108 26.7% $369,685 4.8% CITY CLERK $257,495 $59,708 23.2% $34,297 13.3%
CITY MANAGER $1,184,527 $364,175 30.7% $253,899 21.4%

EMERGENCY
OPERATIONS CENTER $72,616 $40,947 56.4% 0.0%
FINANCE $3,346,709 $1,486,721 44.4% $101,935 3.0%
FIRE $10,969,150 $2,494,159 22.7% $108,873 1.0%
HOUSING $4,825,424 $2,892,760 59.9% $3,339,311 69.2%
HUMAN RESOURCES $1,804,521 $1,089,864 60.4% $423,593 23.5%

INFORMATION
TECHNOLOGY $3,745,042 $396,625 10.6% $42,517 1.1%
LIBRARY $6,142,708 $4,304,674 70.1% $436,648 7.1%

PARKS RECREATION
& COMMUNITY
SERVICES $2,678,339 $609,660 22.8% $332,816 12.4%
PLANNING $2,199,282 $688,362 31.3% $1,063,066 48.3%
POLICE $6,314,545 $2,762,456 43.7% $673,426 10.7%
PUBLIC HEALTH $5,474,687 $1,898,272 34.7% $2,404,444 43.9% PUBLIC WORKS $83,172,238 $32,346,309 38.9% $10,539,746 12.7% TRANSPORTATION $35,799,481 $1,699,376 4.7% $2,400,557 6.7% WATER & POWER $37,475,366 $11,325,080 30.2% $787,986 2.1% Grand Total $213,183,332 $66,524,256 31.2% $23,312,798 10.9% Pasade
na Business Success Stories
In FY 2023
, the City spent $23,312,798 with Pasadena businesses, keeping a meaningful share of public dollars circulating locally through jobs, local purchasing, and community reinvestment.

The top five Pasadena businesses by awarded amount represented more than 56% of all Pasadena-businesses showing how local firms can successfully compete and deliver high-impact City work:
• DMS Fac
ility Services Inc: $8,305,459: janitorial services (Public Works) • Union Station Homeless Services: $1,576,509: Holly Street Housing / Continuum of Care (Housing)
• Old Pasadena Management District: $1,383,868: oversight of Old Pasadena Parking Garages (Transportation)
• D-Veal Corporation: $1,141,700: mental health services (Public Health) • Cabrinha Hearn & Associates: $1,012,450: on-call land survey consulting (Public Works)

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Procurement Spending for FY 2024
The following table includes total purchases and percentage of procurements with Pasadena businesses, and Minority and Women-owned Business Enterprises (M/WBE).

Citywide participation by minority- and women-owned business enterprises (M/WBE) totaled $68.5 million, or 35.2% of all procurement spending with Public Health and Housing departments exceeding the average.

DEPARTMENTS TOTAL M/WBE M/WBE %
Pasadena
Businesses
Pasadena
Businesses %
CITY ATTORNEY $7,387,867 $607,791 8.2% $530,305 7.2%
CITY CLERK $844,488 $84,142 10.0% $33,648 4.0%
CITY MANAGER $6,002,679 $2,157,247 35.9% $1,650,881 27.5%

EMERGENCY

OPERATIONS
CENTER $224,997 $74,999 33.3% $74,999 33.3%
FINANCE $2,572,673 $1,015,952 39.5% $170,493 6.6%
FIRE $18,033,922 $4,414,013 24.5% $1,128,305 6.3%
HOUSING $12,294,055 $2,799,027 22.8% $5,886,279 47.8%
HUMAN
RESOURCES $3,347,491 $1,140,143 34.1% $275,198 8.2%

INFORMATION
TECHNOLOGY $6,775,512 $2,291,273 33.8% $1,599,143 23.5% LIBRARY $1,805,203 $1,056,963 58.6% $246,782 13.7%
PARKS

RECREATION &

COMMUNITY
SERVICES $2,652,333 $1,032,294 38.9% $631,831 23.8%
PLANNING $2,594,331 $730,499 28.2% $614,901 23.7%
POLICE $7,735,646 $1,859,576 24.0% $716,918 9.3%
PUBLIC HEALTH $3,202,862 $1,337,069 41.7% $1,572,476 49.1% PUBLIC WORKS $56,165,538 $21,316,299 38.0% $2,632,670 4.7% *RENT

STABILIZATION
DEPARTMENT $437,578 $362,579 82.9% $77,998 17.8%
TRANSPORTATION $13,947,361 $865,702 6.2% $659,018 4.7%
WATER & POWER $48,723,899 $25,443,952 52.2% $558,301 1.2% Grand Total $194,748,435 $68,589,519 35.2% $19,060,147 9.8% *This department was newly established during FY 2024.

In FY
2024, the Purchasing Division played a critical role in the City’s Emergency Operations Center (EOC) by serving as the Logistics Coordinator, supporting emergency response and recovery activities during declared incidents. During the City’s activation related to Hurricane Hilary in August 2023, staff supported the Logistics Section of the EOC, by coordinating emergency procurements, facilitating rapid acquisition of goods and services, and ensuring continuity of operations in compliance with City purchasing policies. Purchasing staff

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participating in the EOC completed training and briefings related to FEMA’s Public Assistance Program and Policy Guide to ensure emergency procurements met federal eligibility and documentation requirements.

As r
ecovery efforts continued beyond the initial response period, the Purchasing Division maintained an active role within the EOC logistics function by processing emergency purchase orders, contract change orders, documenting procurement actions, and preparing detailed records necessary to support reimbursement claims.

Pasad
ena Business Success Stories
In FY
2024, the City secured $19,060,147 with Pasadena businesses. These contracts highlight local capacity in housing programs, professional services, and public safety/health support, demonstrating that Pasadena firms and nonprofits are not only participating but delivering core services that directly affect the residents’ quality of life. The businesses listed below accounted for more than 29% of total Pasadena-business awards:
• Unio
n Station Homeless Services: $2,091,393: encampment resolution funding (Housing)
• HHP-2318 LLC: $2,000,000: 2318 E Foothill Blvd housing project (Housing) • Pasadena Hospital Association Ltd: $1,009,191: Nurse Educator/CQI Program Coordinator (Fire)
• Pacifica Services Inc: $1,000,000: on-call project management services (Public Works) Pro
curement Spending for FY 2025
The following table includes total purchases and percentage of procurements with Pasadena businesses, and Minority and Women-owned Business Enterprises (M/WBE). There were unique purchases in FY 2025. Water & Power executed a series of utility-related contracts totaling over $100 million, reflecting essential investments in water supply, power reliability, and critical infrastructure. These purchases include long-term power and energy storage projects. While these purchases taken together can be viewed as an anomaly, major projects often occur in cycles. In addition, one single contract award in the Water & Power Department was for the Battery Storage project in the amount of $55,310,000, awarded to a minority owned business. Consequently, this single purchase has also impacted the Pasadena business percentage.

DEPARTMENTS TOTAL M/WBE M/WBE %
Pasadena
Businesses
Pasadena
Businesses %
CITY ATTORNEY $8,390,749 $2,326,161 27.7% $169,849 2.0% CITY CLERK $565,567 $101,218 17.9% $14,249 2.5%
CITY MANAGER $3,378,494 $1,666,017 49.3% $495,590 14.6%

EMERGENCY

OPERATIONS
CENTER $12,377,390 $6,874,993 55.5% $3,462,976 28.0%

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DEPARTMENTS TOTAL M/WBE M/WBE %
Pasadena
Businesses
Pasadena
Businesses %
FINANCE $1,175,928 $138,054 11.7% $608,798 51.8%
FIRE $18,813,236 $4,049,193 21.5% $103,299 0.5%
HOUSING $9,379,975 $4,042,720 43.1% $4,994,710 53.2%
HUMAN RESOURCES $482,653 $337,871 70.0% $159,283 33.0%

INFORMATION
TECHNOLOGY $12,408,268 $9,104,983 73.4% $154,523 1.2%
LIBRARY $1,396,436 $630,213 45.1% $371,895 26.6%

RENT STABILIZATION
DEPARTMENT $1,473,868 $273,558 18.6% $93,525 6.3%
TRANSPORTATION $17,564,775 $6,463,480 36.8% $295,014 1.7% WATER & POWER $152,409,958 $71,592,561 47.0% $943,642 0.9% Grand Total $319,874,354 $123,057,186 38.5% $20,024,509 7.3% In FY 2025, Purchasing staff provided logistics coordination and support during the Eaton Fire response, which supported procurement of materials, services, shelter, and recovery operations. During the active incident period, the Purchasing team staffed the logistics section of the EOC and processed emergency procurements, expediting the acquisition of critical goods and services, assisting departments in securing resources necessary to protect life, property, and essential City operations, while maintaining compliance with applicable purchasing and emergency guidelines.

As reco
very efforts continue, the Purchasing Division remains engaged within the EOC Logistics function by processing emergency procurements, purchase orders, contract change orders, supporting procurement documentation requirements, and assisting departments with compliance reviews necessary to facilitate FEMA reimbursement. This ongoing coordination ensures that emergency response activities remained operationally effective while also supporting the City’s long-term fiscal recovery following the emergency.

FY 2025 Pas
adena Business Success Stories
In FY 2025
, the City spent $20,024,509 with Pasadena businesses, ensuring the City could respond quickly and effectively to operational and emergency needs. The top four Pasadena businesses by awarded amount represented more than 56% of total Pasadena-business award, reflecting several large, mission-critical engagements where Pasadena vendors delivered essential services and supplies.

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• Select Patrol Agency Inc: $5,648,308: security / lock-up / fire watch support (Public Works)
• HHP-Walnut LLC: $4,375,000: affordable housing loan agreement (Housing) • SupplyMates LLC: $1,169,000: office supplies (Public Works) • Robert Meyers Studio: $579,499: oversized printing services (Finance) Pasade
na First Buy Local (PFBL) & Outreach Events
Through the PFBL initiative, businesses are invited to do business with the City of Pasadena through a combination of outreach efforts. Businesses can register through the City’s e- Procurement system and set up a profile to receive notifications of contracting opportunities based on their business profile and notification preferences. Over 1,400 Pasadena businesses have been invited to register to do business with the City of Pasadena. The table below represents the active vendors in the system, which not only include Pasadena businesses, but also small and micro business registrations for the past three fiscal years.

Fiscal Year
Total Active
Registrations
Active Pasadena
Registrations
Active
Small/Micro
Registrations
*2023 4848 436 1290
2024 1432 144 414
2025 1222 40 293
*The higher number of total registrations reflected in FY 2023 is attributable to the City’s transition to a new e- Procurement system during that fiscal year. The system implementation required vendors to newly register or re- register in order to continue doing business with the City, which resulted in a temporary surge in vendor registrations. In FY 2024 and FY 2025, registration figures reflect a more normalized vendor base following the initial system transition, as well as routine account clean-up and verification activities. As a result, the FY 2023 totals should be viewed as a transition-year baseline rather than a direct year-over-year comparison point.

Staff adm
inistered outreach, and internal and external training for the e-Procurement system.

This system is used to fully manage solicitations from concept to award and advertise procurements to solicit bids and proposals. Generally, e-Procurement has increased efficiency in the development and approval of solicitations, advertisement, and the evaluation of bids and proposals. The Purchasing staff will continue to provide ongoing training to City departments, and operating companies. Staff facilitated and recorded several public training courses for vendors. Training materials, including recorded videos, are available on the City’s website under “Doing Business with the City.” Every solicitation released also includes training materials for submitting an electronic bid or proposal.

The tabl
e below represents the volume of solicitations advertised through the City’s e- Procurement System over the past three fiscal years. Informal selections as defined in the PMC are solicitations for procurements under $75,000

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Fiscal Year Total
Informal
Selections
Formal Solicitations
(Bids/RFPs)
2023 315 104 189
2024 442 211 220
2025 251 92 144
PMC 4.

08.030 gives the City Manager authority to establish procedures for procurements under $75,000. Including procedures requiring City Departments to consider quotes from Pasadena businesses prior to considering quotes from non-Pasadena businesses. This method has primarily been applied to the single quote threshold which is currently $10,000.

The p
rocess requires departments to initially solicit quotes from Pasadena businesses for procurements that only require a single quote ($10,000 or lower). It is important to note that in FY 2023 the threshold for a single quote was $3,000. The single quote Process has provided staff with an additional tool for doing business with Pasadena businesses. The table below includes a list of the departments and the number of purchases made from Pasadena businesses. The percentage is based on the contract value for the portion of contracts awarded under the single quote requirement for the corresponding fiscal year.

FY 2023 FY 2024 FY 2025
DEPARTMENTS No Award Percent No Award Percent No Award Percent CITY ATTORNEY 3 $7,185 33.4% 7 $18,305 24.8% 5 $7,849 11.2% CITY CLERK 2 $1,197 8.1% 2 $13,648 19.2% 2 $14,249 13.6% CITY MANAGER 10 $20,274 38.9% 3 $2,758 3.2% 9 $31,541 16.0%

EMERGENCY

OPERATIONS
CENTER 4 $25,392 28.9%
FINANCE 6 $13,848 38.1% 5 $20,497 25.5% 6 $29,299 31.3% FIRE 6 $13,875 18.7% 7 $22,795 10.6% 3 $13,300 3.9%
HOUSING 5 $11,166 37.9% 11 $32,493 30.1% 10 $61,964 29.4% HUMAN
RESOURCES 2 $2,095 14.3% 2 $10,149 23.1% 4 $21,084 35.2%

INFORMATION
TECHNOLOGY 2 $4,499 9.2% 3 $11,114 8.6% 2 $6,999 5.1%
LIBRARY 5 $6,533 8.7% 15 $36,611 12.2% 20 $43,121 12.7%

PARKS RECREATION
& COMMUNITY
SERVICES 19 $38,962 42.3% 20 $63,331 21.8% 29 $112,648 28.2% PLANNING 17 $26,152 45.4% 42 $219,537 58.6% 44 $229,830 55.5% POLICE 31 $81,379 27.8% 37 $102,530 18.3% 35 $114,337 19.0% PUBLIC HEALTH 25 $42,772 33.6% 47 $153,879 45.7% 37 $103,781 33.2% PUBLIC WORKS 19 $36,959 22.3% 38 $155,145 24.4% 39 $229,437 31.9% RENT

STABILIZATION
DEPARTMENT 1 $2,999 51.1% 7 $22,846 53.4%
TRANSPORTATION 2 $2,344 4.5% 1 $1,800 1.7% 5 $21,386 15.8%

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FY 2023 FY 2024 FY 2025
DEPARTMENTS No Award Percent No Award Percent No Award Percent WATER & POWER 20 $48,804 24.1% 27 $70,881 12.2% 33 $178,553 23.6% Grand Total 174 $358,044 26.3% 268 $938,472 23.5% 294 $1,267,616 25.2% Contr
acts awarded to Pasadena businesses at or below the single quote requirement support day-to-day operational needs and reflect consistent engagement with Pasadena businesses across nearly all departments. These small dollar purchases include a range of products and services. While these contracts are modest in individual value, they represent high-frequency, critical purchases that enable departments to operate efficiently while circulating public funds within the local economy, supporting a broad and diverse base of Pasadena businesses, entrepreneurs, and small firms that may not otherwise pursue formal contracts.

Comp
etition Levels
Ove
r the past three fiscal years, the City has experienced a steady and measurable increase in vendor competition to its solicitations, reflecting the growing effectiveness of the City’s procurement practices and outreach efforts. In FY 2023, the City established a baseline for competition following the transition to the new e-Procurement platform, with vendors still becoming familiar with the system and solicitation process. Building on that foundation, FY 2024 showed a clear increase in vendor participation and competition, as more vendors registered, accessed solicitations, and submitted proposals. This growth reflects expanded outreach efforts and improved accessibility to City contracting opportunities. By FY 2025, the City achieved its highest levels of vendor engagement and competition, with more vendors reviewing, applying for, and submitting proposals per solicitation than in prior years.

Averag
e vendor interest (Prospective Bidders):
• FY23: 3.5 vendors per solicitation
• FY24: 5.9 vendors per solicitation
• FY25: 7.8 vendors per solicitation
Averag
e proposals submitted:
• FY23: 2.3 submissions per solicitation
• FY24: 3.6 submissions per solicitation
• FY25: 4.5 submissions per solicitation
Staff
conducted a series of outreach activities to support Pasadena and small businesses in accessing City contracting opportunities. Since December 2022, efforts have included large-scale vendor trainings for the new e-Procurement system, small business conferences in partnership with organizations such as Jet Propulsion Laboratory, and multiple “Doing Business with the City” workshops. Staff also participated in regional small business events hosted by the Small Business Development Center, Metro’s Meet the Certifiers – Connecting Small Businesses to Opportunity, Neighbors Acting Together Helping All (NATHA), the READY LA! Procurement

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Accelerator at Pasadena City College, and a Contracting 101 workshop, specifically tailored for Pasadena businesses hosted at The Gathering - Crown Room. These efforts reflect the City’s ongoing commitment to expanding local and small-business participation in procurement.

Staff
will continue providing workshops, one-on-one meetings, and targeted outreach to help businesses navigate the City’s e-Procurement system and compete for contracting opportunities. These efforts equip Pasadena and small businesses with the knowledge needed to respond effectively to bids, RFPs, and informal solicitations, while individualized meetings allow firms to explore opportunities tailored to their capabilities. By continuing these efforts, the City strengthens local economic participation, expands access for small and diverse businesses, and helps ensure that public dollars generate broader community benefits throughout Pasadena.

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Department of Finance
Procurement Report
Fiscal Years 2023-2025
Presented by
Department of Finance

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Department of Finance
Procurement Spending Overview
• FY 23 Total Procurement: $213,183,332
• FY 24 Total Procurement: $194,748,435
• FY 25 Total Procurement: $319,874,354
• Tota
ls exclude utility commodity
p
urchases, attorney services,
intergovernmental agreements, petty
cash, and other non-procurement
transactions.
2

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Department of Finance
Policy and Process Updates
• December 2022: Transition to new
• eProcurement system
• July 2024: Amendments to P MC Chapter

4.08 > Updated solicita tion thresholds
> Revised reporting structure based on fiscal years
• Expanded opportunities for Pasadena
businesses in
small procurements
3

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Department of Finance
Department Breakdown FY 23
DEPARTMENTS Procurement Spend M/WBE M/WBE % Pasadena Businesses Pasadena
Businesses %
CITY ATTORNEY $7,721,202 $2,065,108 26.7% $369,685 4.8% CITY CLERK $257,495 $59,708 23.2% $34,297 13.3%
CITY MANAGER $1,184,527 $364,175 30.7% $253,899 21.4%

EMERGENCY OPERATIONS
CENTER $72,616 $40,947 56.4% 0.0%
FINANCE $3,346,709 $1,486,721 44.4% $101,935 3.0%
FIRE $10,969,150 $2,494,159 22.7% $108,873 1.0%
HOUSING $4,825,424 $2,892,760 59.9% $3,339,311 69.2%
HUMAN RESOURCES $1,804,521 $1,089,864 60.4% $423,593 23.5% INFORMATION TECHNOLOGY $3,745,042 $396,625 10.6% $42,517 1.1% LIBRARY $6,142,708 $4,304,674 70.1% $436,648 7.1%

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Department of Finance
Department Breakdown FY 24
DEPARTMENTS Procurement Spend M/WBE M/WBE % Pasadena Businesses Pasadena
Businesses %
CITY ATTORNEY $7,387,867 $607,791 8.2% $530,305 7.2%
CITY CLERK $844,488 $84,142 10.0% $33,648 4.0%
CITY MANAGER $6,002,679 $2,157,247 35.9% $1,650,881 27.5% EMERGENCY OPERATIONS CENTER $224,997 $74,999 33.3% $74,999 33.3% FINANCE $2,572,673 $1,015,952 39.5% $170,493 6.6%
FIRE $18,033,922 $4,414,013 24.5% $1,128,305 6.3%
HOUSING $12,294,055 $2,799,027 22.8% $5,886,279 47.8%
HUMAN RESOURCES $3,347,491 $1,140,143 34.1% $275,198 8.2% INFORMATION TECHNOLOGY $6,775,512 $2,291,273 33.8% $1,599,143 23.5% LIBRARY $1,805,203 $1,056,963 58.6% $246,782 13.7%

PARKS RECREATION & COMMUNITY
SERVICES $2,652,333 $1,032,294 38.9% $631,831 23.8%
PLANNING $2,594,331 $730,499 28.2% $614,901 23.7%
POLICE $7,735,646 $1,859,576 24.0% $716,918 9.3%
PUBLIC HEALTH $3,202,862 $1,337,069 41.7% $1,572,476 49.1% PUBLIC WORKS $56,165,538 $21,316,299 38.0% $2,632,670 4.7% *RENT STABILIZATION DEPARTMENT $437,578 $362,579 82.9% $77,998 17.8% TRANSPORTATION $13,947,361 $865,702 6.2% $659,018 4.7%
WATER & POWER $48,723,899 $25,443,952 52.2% $558,301 1.2% Grand Total $194,748,435 $68,589,519 35.2% $19,060,147 9.8% 5

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Department of Finance
Department Breakdown FY 25
DEPARTMENTS Procurement Spend M/WBE M/WBE % Pasadena Businesses Pasadena Businesses
%
CITY ATTORNEY $8,390,749 $2,326,161 27.7% $169,849 2.0% CITY CLERK $565,567 $101,218 17.9% $14,249 2.5%
CITY MANAGER $3,378,494 $1,666,017 49.3% $495,590 14.6% EMERGENCY OPERATIONS CENTER $12,377,390 $6,874,993 55.5% $3,462,976 28.0% FINANCE $1,175,928 $138,054 11.7% $608,798 51.8%
FIRE $18,813,236 $4,049,193 21.5% $103,299 0.5%
HOUSING $9,379,975 $4,042,720 43.1% $4,994,710 53.2%
HUMAN RESOURCES $482,653 $337,871 70.0% $159,283 33.0%
INFORMATION TECHNOLOGY $12,408,268 $9,104,983 73.4% $154,523 1.2% LIBRARY $1,396,436 $630,213 45.1% $371,895 26.6%

PARKS RECREATION & COMMUNITY
SERVICES $3,967,448 $1,673,651 42.2% $333,816 8.4%
PLANNING $3,716,525 $1,200,832 32.3% $458,674 12.3%
POLICE $11,799,049 $2,727,974 23.1% $598,496 5.1%
PUBLIC HEALTH $2,246,314 $1,640,293 73.0% $245,281 10.9% PUBLIC WORKS $58,327,721 $8,213,415 14.1% $6,520,890 11.2% RENT STABILIZATION DEPARTMENT $1,473,868 $273,558 18.6% $93,525 6.3% TRANSPORTATION $17,564,775 $6,463,480 36.8% $295,014 1.7% *WATER & POWER $152,409,958 $71,592,561 47.0% $943,642 0.9% Grand Total $319,874,354 $123,057,186 38.5% $20,024,509 7.3% 6

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Department of Finance
Major Procurement Activity – FY 25
• Significant utility infrastructure projects
execu
ted by Water & Power
• Over $100M in water supply and power
reliab
ility investments
• $55M Battery Storage project awarded to
a minor
ity-owned business
• Large projects may cause year-to-y ear
fluctuations in procurement metrics
7

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Department of Finance
Emergency Operations Support
• Purchasing Division staffed logistic s section
of the Emergency Operations Center
(EOC) during disaster response for
Hurricane Hilary and the Eaton Fire
• EOC key responsibilities
> Coordinated emergency procurements and
acqui
red critical goods and services during
incidents
> Coordinated Inter-depart mental Reviews and
prepared procurement documentation for FEMA
& Insurance reimbursements
8

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Department of Finance
eProcurement System and
Vendor Outreach
• System manages solicitations from
concept to award a
nnouncement
• Provides electronic advertising, bidding,
and evalu
ation tools
• Vendor training materials available to
Department
s, and Vendors
• Businesses register through the City’s
eProcur
ement system
> Over 1,400 Pasadena businesses invited to
register
9

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Department of Finance
Solicitations Advertised
Fiscal
year Total Informal
Selections
Formal Solicitations
(Bids/RFPs)
2023 315 104 189
2024 442 211 220
2025 251 92 144
• Released more than 1,000 solicitations across FY23–FY25 • FY23 representing the first full year of activity following the City’s transition to the new eProcurement platform.
• FY24 reflecting expanded use of the City’s eProcurement system and increased departmental participation.
• FY25 reflecting a lower total volume but continued strong vendor participation and engagement.
• Data indicates fluctuation from year-to-year, but vendor participation and competition have continued to increase.
10

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Department of Finance
Vendor Engagement
• Average plan holders / downloaders
incre
ased significantly:
> FY 23: more than12 vendors per solicitation
> FY 24: m
ore than 20 vendors per solicitation
> FY 25: m
ore than 32 vendors per solicitation
Fiscal
year
Active
Registrations
Active Pasadena
Registrations
Active Small/Micro
Registrations
2023 4,848 436 1,290
2024 1,432 144 414
2025 1,222 40 293
11

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Department of Finance
Competition Levels
• Average vendor interest (Prospective
Bid
ders):
> FY 23: 3.5 vendors per solicitation
> FY 24: 5
.9 vendors per solicitation
> FY 25: 7
.8 vendors per solicitation
• Average proposals submitted:
> FY 23: 2.3 submissions per solicitation
> FY 24: 3
.6 submissions per solicitation
> FY 25: 4
.5 submissions per solicitation
12

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Department of Finance
Pasadena First Buy Local Program
• Workshops and outreach events for
Pasaden
a businesses
• One-on-one meetings to assist vendors
with s
olicitations
• Outreach supports equitable access to
City con
tracting opportunities
13

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INFORMATION ONLY
ITEM 6

6. FY 2026 CAPITAL IMPROVEMENT PROGRAM - THIRD QUARTER

MONITORING
REPORT

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TO:

FROM:

DATE:

DEPARTMENT OF PUBLIC WORKS

MEMORANDUM
SUBJECT:

Finance Committee
Gregory de Vinck, P.E., Director of Public Works (9;,V
April 13, 2026
FY 2026 Capital Improvement Program - Third Quarter Monitoring Report Attached for the Finance Committee's review is an update of the active Capital Improvement Program (CIP) projects through March 31, 2026. The Third Quarter Monitoring Report (QMR) includes 196 projects as summarized on the chart below:

NUMBER OF PROJECTS REVIEWED - 196
Planning
............___
16% "--
Ongoing
51%
/
Completed
3% Construction
11%
__,/
Design
13%
No Activity
7%
If you have questions on any projects, please let me know prior to the April 13, 2026 Finance Committee meeting and I will have the appropriate staff available to respond.

Thank you.

Page 162 ends

Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
LEGEND
Project Completed
Project Delayed - External Factors
Project Delayed - Internal Factors
Project Over Budget

Page 163 ends

Municipal Buildings and Facilities
7,675,0008,425,000Fire Stations Renovations and
Improvements
719111 Design for Fire Station 32 completed in the
second quarter. Further design on hold for
future Fire Stations.

Design of Fire Station 32 improvements will
be completed in FY 2026.
97% 6/30/2026 Ongoing7,444,963
204,860,000204,860,000Central Library Seismic Retrofit
and Renovations
719222 Phase II construction contract was awarded
on March 2, 2026. Materials, Testing and
Inspection contract awarded on March 9,
2026.

Construction will begin in FY 2026.
9% 9/30/2028 Construction18,910,771
1,000,00010,769,912Building Maintenance FY 2026 -
2030
719313 Planning for Building Automation upgrades
continued in the third quarter.

Building Automation upgrades will be
completed at various locations in FY 2026.

Buildings to be upgraded have yet to be
determined but will average five buildings a
year over the next five years. Work will also
be completed at Villa-Parke Community
Center, Hale Building and Police Department.
43% 6/30/2030 Design425,239
3,400,0003,400,000Mobile Operations Center719194 No reportable activity in the third quarter.

Permit issuance and bid advertisement
anticipated in the fourth quarter.

Construction will begin in FY 2026.
71% 6/30/2027 Design2,419,900
3,907,9335,100,000Hale Building Interior Remodel -
Phase II
711705 Construction of the Hearing Room has been
completed in the third quarter. Construction
of the Permit Center is anticipated to begin in
the fourth quarter.

Phase II construction will be completed in FY
2026.
59% 6/30/2026 Construction2,302,276
500,0004,860,882Hill Ave Library Roof Replacement
and Seismic Strengthening
719327 No reportable activity in the third quarter.

Advertisement for the construction bids
scheduled in the fourth quarter.

This project will continue in FY 2026.
0% 6/30/2027 Ongoing0
703,7855,150,000Improvements at City Yards
Facility
719288 Phase I construction of sewer lateral
connection completed in the second quarter.

Phase II resurfacing of parking lot completed
in the second quarter. No reportable activity
in the third quarter.

Phase I and Phase II construction will be
completed in FY 2026.
91% 6/30/2026 No Activity This
Quarter
639,485
100,000100,000City Hall Courtyard Fountain
Repairs & Restoration
719299 Awarded purchase order contract for fountain
assessment and determination of final
restoration procedures in the third quarter.

This project will continue in FY 2026.
80% 6/30/2026 Design79,716
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 2

Page 164 ends

300,000225,000Public Health Building Restrooms
- ADA Improvements
7192510 Construction contract awarded in the third
quarter. Construction anticipated to be
completed in the fourth quarter.

This project will be completed in FY 2026.
25% 6/30/2026 Ongoing74,683
550,000550,000Underground Storage Tank
Relining
7193011 Planning continued in the third quarter.Planning and design of relining tanks will continue in FY 2026.
0% 6/30/2026 Planning0
300,000300,000City Hall Building Systems -
Design Phase
7192312 Planning continued in the third quarter.Design will continue in FY 2026. 1% 6/30/2026 Ongoing2,470
175,000175,000Update to ADA Transition Plan for
City Facilities
7192413 ADA transition plan report anticipated to be
completed in the fourth quarter.

This project will be completed in FY 2026.
89% 6/30/2026 Ongoing156,010
500,0002,500,000HVAC Replacement at City
Facilities
7193314 Planning has been completed in the third
quarter.

Evaluation of HVAC systems to begin in FY
2026 followed by a replacement schedule to
be implemented between FY 2027 and FY
2030 in the order of highest priority.
3% 6/30/2026 Design15,128
1,000,0002,000,000Roof Replacement at City
Facilities
7193415 Construction completed at Fire Station 36,
and began roof replacements at the following
locations: Santa Catalina Library, Lamanda
Library, Hasting Library in the third quarter.

This project will begin in FY 2026.
7% 6/30/2026 Construction74,617
969,062969,062YWCA Building Preservation7193516 Maintenance and inspections continued in the third quarter.

The design of renovations and improvements
outlined in the completed structural
assessment for this project will begin in FY
2026.
0% 6/30/2026 Ongoing0
Streets and Streetscapes
11,024,71454,200,000Annual Citywide Street
Resurfacing and ADA
Improvement Program FY 2026
739481 Advertisement was posted in the third
quarter. Contract execution and construction
is anticipated in the fourth quarter.

Resurfacing will continue in FY 2026.
5% 6/30/2026 Ongoing584,047
10,200,00010,200,000Annual Citywide Street
Resurfacing and ADA
Improvement Program FY 2025
739442 Project was completed in the second quarter.Resurfacing will continue in FY 2026. 87% 6/30/2026 Completed8,900,064
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 3

Page 165 ends

1,050,0009,550,000Sierra Madre Blvd. Median
Enhancements
739453 Environmental permitting approval from Los
Angeles County is anticipated to be
completed in the fourth quarter. Construction
anticipated to begin in the first quarter of FY
2027.

Design and jurisdictional permitting will
continue in FY 2026.
84% 6/30/2026 Design885,668
2,198,0505,000,000Curb Ramp ADA Improvements
Program FY 2022 - 2026
739374 Design phase is anticipated to be completed
in the third quarter. Construction is
anticipated to begin in the fourth quarter.

Installation of curb ramps will continue in FY
2026.
87% 6/30/2026 Ongoing1,917,271
1,500,00012,100,000Annual ADA Citywide Sidewalk
Improvement Program FY 2026 -
2030
739495 Construction began in the third quarter.Repair of sidewalks will continue in FY 2026. 11% 6/30/2025 Construction170,800
2,874,0002,874,000Colorado Street Bridge Barrier
Enhancements - Design Phase
733246 Public Safety Committee presentation for
further evaluation of concepts by Pasadena
Heritage is anticipated to be held in the fourth
quarter.

Design and environmental documentation will
continue in FY 2026.
51% 6/30/2028 Ongoing1,468,155
677,8371,000,000Miscellaneous Sidewalk Repair
Program FY 2026 - 2030
739507 Construction is anticipated to begin in the
third quarter.

Sidewalk repairs will continue in FY 2026.
6% 6/30/2025 Construction43,786
10,575,00010,575,000Holly Street Bridge - Seismic
Retrofit
733238 Design continued in the third quarter.

Advertisement for construction is anticipated
to begin in the fourth quarter.

Design will be completed in FY 2026.
15% 6/30/2027 Design1,628,023
1,861,14910,546,067San Rafael Bridge Seismic
Retrofit
739469 Preliminary Environmental Study approved
by Caltrans in the third quarter.

Design will begin in FY 2026.
4% 6/30/2025 Design66,086
353,372553,372Guardrail Program FY 2023 -
2027
7394110 Various locations identified for construction in the third quarter. Construction is anticipated
to begin in the fourth quarter.

This is a continuing program. Projects will be
scheduled by City staff as repairs and/or
replacements are identified.
35% 6/30/2027 Construction123,355
200,0003,500,000Misc. Roadway Slope
Improvements
7394711 No reportable activity in the third quarter.Geotechnical evaluation and design to address structural needs will continue in FY
2026.
1% 6/30/2026 No Activity This
Quarter
1,639
585,856685,856Bridge Improvement Program FY
2024 - 2028
7394312 Construction was completed on March 12,
2025. Los Angeles County began
construction for the additional work on the
New York Bridge over the Eaton Wash in the
third quarter.

Bridge inspections and improvements will
continue in FY 2026.
35% 6/30/2028 Construction204,657
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 4

Page 166 ends

Street Lighting
4,435,0005,494,000High Voltage Series Street Light
Conversion - Phase I
744151 Work on high voltage series conversions and
luminaire retrofits on circuit S104 Linda Vista
Avenue continued in the third quarter.

Construction will continue for the S-104 (Linda
Vista Ave.) circuit in FY 2026.
94% 12/31/2027 Ongoing4,179,915
300,00017,480,000High Voltage Series Street Light
Conversion - Phase II
744172 Pasadena Water and Power Department
installed a power feed to continue work on
the conversion circuit at Canyon Close Road
(S-091) in the third quarter.

Future circuit conversions will begin when
funds are identified.
95% 6/30/2026 Ongoing285,477
155,0006,675,000High Voltage Series Street Light
Conversion - Phase III
744203 No reportable activity in the third quarter.Future circuit conversions will begin when funds are identified.
58% 6/30/2026 No Activity This
Quarter
89,887
1,000,0566,775,000Street Lighting Program FY 2024 -
2028
744224 Street light work orders and LED
replacements continued for upgrades at
various citywide locations in the third quarter.

This is a continuing program. Projects will be
scheduled by City staff as requests are
received for enhanced lighting or in-fill
lighting; and as street light components in
need of repair or replacement are identified.
92% 6/30/2026 Ongoing923,384
500,0002,860,000LED Street and Safety Lighting
Upgrades FY 2023 - 2027
744215 The replacement and upgrade of induction
safety lights to LED technology continued in
the third quarter.

Installation of Phase I and II will continue in
FY 2026.
87% 6/30/2026 Ongoing433,980
Street Lighting and Electric Undergrounding
12,122,00044,410,000Raymond Avenue - Electrical
System Undergrounding, Maple
Street to North City Limits
32141 Construction began in the third quarter.Civil construction work and underground electrical system construction will continue in
FY 2026.
7% 6/30/2028 Construction821,039
4,800,00014,752,000Mountain Street - Electrical
System Undergrounding, Lake
Avenue to Hill Avenue
32132 No reportable activity in the third quarter.No workplan in FY 2026. 5% 6/30/2030 No Activity This
Quarter
245,082
634,000381,000Electric System Undergrounding
Outside Established
Undergrounding Districts
32103 No reportable activity in the third quarter.This is an ongoing project involving undergrounding projects that are not part of
an established undergrounding district. An
estimated four service reimbursements will be
processed in FY 2025.
37% 6/30/2030 No Activity This
Quarter
231,428
Transportation
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 5

Page 167 ends

Active Transportation/Complete Streets
455,225855,225Pasadena Bicycle Program FY
2026-2030
759191 Bike rack installations in existing bicycle
facilities on Maple and Corson continued in
the third quarter.

Implementation of the Bicycle Transportation
Action Plan will continue in FY 2026, including
installation of additional painted bikeway
amenities such as green paint at conflict
points, safety crossing improvements, and
installation of sharrows along Roseway and
Greenway bike routes. In addition,
prioritization of existing bike network gaps,
and continuation of bicycle education and
event activities will continue in FY 2026.
3% 6/30/2026 6/30/2030 Ongoing12,385
753,2751,199,915Citywide Neighborhood Traffic
Management Program FY 2026-
2030
759233 Construction began in the third quarter.Ongoing work, including speed hump investigations, the preferential parking
program, and the Neighborhood Traffic
Management Program (NTMP), in various
neighborhoods will continue in FY 2026. A
specific NTMP for the neighborhood of
Mountain St./El Molino Ave. area (between
Los Robles Ave. and Lake Ave.) and Boylston
St./Lake Ave. area is expected to begin in FY
2026.
0% 6/30/2025 Ongoing1,365
2,059,3882,059,388Pedestrian Crossing
Enhancements Program FY 2021-
2028
751124 HSIP Cycle 11 design was completed in the
third quarter. Measure M Pedestrian
Crossing enhancements contract executed in
the third quarter.

Design of RRFB's on Marengo Ave. at Wallis
St., Green St. at Chester Ave., Green St.at
Michigan Ave., and Villa St. at Oakland Ave.
will continue in FY 2026.
42% 6/30/2025 Construction868,845
168,512660,500Arterials Speed Management
Program FY 2026-2030
759245 Portions of Marengo Ave, Orange Grove
Blvd, and San Pasqual St. were selected for
design and installation in the third quarter.

Installation for speed feedback signs on El
Molino Ave. between Del Mar Blvd. and
California Blvd.; Los Robles Ave. between
California Blvd. and Fillmore St.; Del Mar Blvd
between Berkeley Ave. and
Grand Oaks Ave. will be completed in FY
2026. Design for additional locations will
begin in FY 2026.
6% 6/30/2030 Design9,452
1,599,9801,599,980Complete Streets Project - N Hill
Ave from North City Limit to Villa
St
750937 Planning continued in the third quarter.Improvements at Hill Ave. and Topeka St. were completed in FY 2024. The design for
Hill Ave. and Elizabeth St. will be evaluated in
FY 2026 taking into consideration the results
of work completed at Topeka St.
60% 6/30/2026 Ongoing953,890
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 6

Page 168 ends

2,106,6812,106,681Enhancements to Metro A Line
Allen Station
755148 Construction began in the third quarter.Construction will begin in FY 2026.34% 9/30/2026 Construction719,122 10,143,53210,143,532Lake Ave Traffic and Pedestrian
Safety Enhancements from
Mountain St to Maple St
751059 Request for Proposal for design posted in the
third quarter. Website went live in the third
quarter.

Public outreach and design will continue in FY
2026.
2% 12/31/2027 Planning246,230
200,0002,200,000Pedestrian Transportation Action
Plan - Outreach and Conceptual
Design
7551110 Planning continued in the third quarter.Public outreach and concept design will continue in FY 2026.
0% 12/31/2026 6/30/2026 Ongoing0
12,600,00012,600,000Greenway (Bike Boulevard)
Implementation
7512611 Contract for design awarded on January 6,
2026.

Procurement for professional services,
community outreach, and design to begin in
FY 2026.
1% 6/30/2029 Design75,005
75,100,00075,100,000Pasadena Ave and St John Ave
Street Improvements
7512713 Contract for design awarded November 24,
2025. Engagement and design work is
anticipated to begin the fourth quarter.

Community outreach, and design will continue
in FY 2026.
0% 6/30/2030 6/30/2030 Planning106,580
9,900,0009,900,000Columbia Street Multimodal
Improvements
7512814 Request for proposals for planning and
design services continued in the third quarter.

Community outreach and design will continue
in FY 2026.
0% 6/1/2030 Planning34,112
1,279,38918,300,000Citywide Continental Crosswalk
Implementation
7591715 Planning continued in the third quarter.

Request for Proposal for design anticipated
in the fourth quarter.

Crosswalk installations will begin in FY 2026.
0% 6/30/2026 Planning2,648
5,400,0005,400,000Orange Grove Blvd Mobility
Improvement Program
7512918 Planning began in the third quarter.Funding agreement execution with Metro is anticipated in FY 2027.
0% 6/30/2027 Planning0
97,000200,000Two-Way Traffic Conversion -
Mentor Ave from Walnut St to
Colorado Blvd - Feasibility Study
7591819 Planning continued in the third quarter.The Feasibility study will continue in FY 2026. 0% 6/1/2027 Planning0
Traffic Operations, Traffic Signals, and ITS
0612,144Mobility Corridor Improvements
FY 2026-2030
20 Planning continued in the third quarter.

Design anticipated to begin in FY 2027.

This project will continue in FY 2026.
0% 6/30/2026 Planning
697,7101,097,710Transportation System Safety
Enhancements Project - FY 2021
- 2028
7511521 Design completed in the third quarter.Design of reflective backplates and near side traffic signal heads will continue in FY 2026.
8% 6/30/2026 Design53,233
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 7

Page 169 ends

199,183310,000Old Pasadena Traffic
Improvement - FY 2026-2030
7592022 Continued assisting Old Pasadena
Management District with design for bollard
improvements on Mills Alley in the third
quarter.

Additional enhancements to signing, striping,
on-street parking, and signal operations will
continue as requested and received.
0% 6/30/2026 Ongoing130
500,802950,802Intelligent Transportation System
(ITS) Equipment
Upgrades/Replacement - FY
2021-2028
7511723 Contract work for ITS device maintenance
continued in the third quarter.

This project will continue in FY 2026.
34% 6/30/2026 Ongoing169,430
661,9283,182,428Implementation of Citywide
Transportation Performance
Monitoring Network
7560225 Planning continued in the third quarter.

Design anticipated to begin in FY 2027.

Future identified locations and implementation
will begin in FY 2026.
79% N/A Planning519,689
1,447,1911,447,191Implement Bus Signal Priority
System on Pasadena Transit
Buses
7509426 Construction continued in the third quarter.Construction will begin in FY 2026. 34% 12/31/2026 Construction493,864
4,208,0004,208,000Walnut St Corridor Signal
Improvements
7512127 Re-advertising for construction continued in
the third quarter. Contract award is
anticipated in the fourth quarter.

Construction will begin in FY 2026
23% 12/31/2026 Ongoing967,896
3,800,0003,800,000Intelligent Transportation System
Projects & Traffic Flow
Improvements within the SR 710
Affected Corridors
7591428 Construction contract awarded in the third
quarter. Construction is anticipated to begin
in fourth quarter.

Construction will begin in FY 2026.
21% 12/31/2026 Construction779,092
917,210917,210Installation of Pedestrian Hybrid
Beacon at Washington Blvd and
Hudson Ave
7551229 No reportable activity in the third quarter.Construction will be completed in FY 2026. 52% 12/31/2026 Completed478,607
766,000766,000Traffic Signal at Del Mar Blvd and
Michigan Ave
7521130 No reportable activity in the third quarter.Construction will be completed in FY 2026. 97% 12/31/2026 Completed740,533
990,000990,000Traffic Signal at Orange Grove
Blvd and Craig Ave
7509731 No reportable activity in the third quarter.Construction will be completed in FY 2026. 97% 6/30/2026 Completed956,855
970,000970,000Installation of Traffic Signal and
Curb Extensions at Sierra Bonita
Ave and Orange Grove
7513432 Design continued in the third quarter.Design will continue in FY 2026. 6% 6/30/2029 Design60,450
4,270,8005,711,908A Line Phase I - Project
Enhancements
7550633 Planning continued in the third quarter.This project will continue in FY 2026. 1% 6/30/2026 Ongoing45,874
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 8

Page 170 ends

2,500,0002,500,000Pasadena Light Rail Train (LRT)
Tracking and Network Monitoring
System - Phase II
7552434 Planning continued in the third quarter.

Design anticipated to begin in FY 2027.

Design will begin in FY 2026.
4% 6/30/2027 Planning92,060
40,000280,000Signal Preemption Equipment at
Traffic Signals Citywide - Phase II
7591639 Planning continued in the third quarter.This project will be completed when funds are identified.
0% 6/30/2025 Planning0
851,350851,350Installation of Automated License
Plate Readers - Pilot Program
7511940 Planning continued with Pasadena Police
Department in the third quarter.

Phase III installations will commence when
scope is identified
60% 6/30/2025 Planning513,251
556,0001,500,000Traffic Signal at Del Mar Blvd and
Kinneloa Ave
7592254 Design began in the third quarter.This project will begin when funds are identified.
5% 10/31/2027 Design25,085
Transit
51,292,34751,292,346Purchase of Replacement Transit
Vehicles and Expansion Fixed-
Route Transit Vehicles
7508544 Work on the production of the 17 buses
continued in the third quarter.

Nine expansion zero-emission vehicles, and
eight replacement zero-emission vehicles
were ordered in FY 2025 with delivery in FY
2027 to implement the Adopted Zero-
Emission Bus Rollout Plan.
27% 6/30/2027 Construction13,644,228
4,409,8697,884,316Purchase of Dial-A-Ride Vehicles7508645 Planning phase initiated to reevaluate vehicle replacement to follow state compliance in the
third quarter.

Seven replacement zero-emission vehicles
will be ordered to replace aging fleet and
implement the adopted Zero-Emission Bus
Rollout Plan in FY 2026.
31% 2/27/2026 12/30/2027 Planning1,366,079
72,620,000100,000,000Construction of Transit Operations Maintenance Facility
7570746 Design continued in the third quarter.

Request for Proposal was advertised in third
quarter.

Design will continue in FY 2026.
15% 6/30/2026 Design10,663,127
2,746,2744,332,093Bus Stop Improvement Program7590047 No reportable activity in the third quarter.This project will continue in FY 2026.16% 6/30/2025 No Activity This Quarter
452,640
17,504,72417,504,724Hydrogen Fueling Station7513348 Design continued in the third quarter.

Request for Proposal was advertised in the
third quarter.

Design will continue in FY 2026.
4% 6/30/2027 Design659,052
Parking
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 9

Page 171 ends

5,000,00012,100,000Off-Street Parking Facility
Maintenance and Repair Project
721601 The last elevator will be completed in March
to complete elevator modernization in FY
2026. Bid documents are being drawn up for
concrete work in the Paseo, Marengo and
DeLacey garages, and will be published in
FY 2026, with work anticipated to be
completed in the first quarter of FY 2027.

Elevator modernization anticipated be
completed in FY 2026. Paseo subterranean
garage concrete deck and beam repairs
categorized as "immediate needs" began in
FY 2024 and will be completed in FY 2026.

Select DeLacey columns and concrete
patching repairs will be completed in FY 2026.

Carbon Monoxide detection systems in the
Paseo Colorado, Del Mar Station, Delacey,
Schoolhouse and Marriott garages will be
completed in FY 2026.
40% 6/30/2027 Construction1,975,891
Sewers and Storm Drains
10,207,24027,667,240Annual Sewer System
Improvements and Capacity
Upgrades - FY 2022-2026
769181 Construction of the repair, rehabilitation, and
inspections of the sewer system continued in
the third quarter.

Repair and rehabilitation of the sewer system
will continue in FY 2026 as identified by
annual inspection and evaluation.
49% 6/30/2026 12/31/2026 Construction4,968,667
2,000,0005,000,000Annual Storm Drain System
Repair & Improvements - FY 2025
- 2029
769202 Plan development and bid advertisement
were completed in the third quarter. Contract
award and construction anticipated to begin
in the fourth quarter.

Repair and replacement of the storm drain
system identified in the FY 2022 Storm Drain
Master Plan will continue in FY 2026.
43% 6/30/2026 8/31/2026 Design854,588
14,199,79914,199,799San Rafael Treatment Wetlands
and Storm Water Capture
762913 This project will continue through
environmental permitting in the third quarter.

Environmental study to continue in FY 2026.
12% 6/30/2025 Design1,706,296
2,198,6122,198,612Brookside Park Stormwater
Capture Project - Design Phase
762944 Design continued in the third quarter.Design will continue in FY 2026. 41% 6/30/2029 Design908,448
2,292,7622,292,762Eaton Wash Stormwater Capture
Project - Design Phase
762955 Design continued in the third quarter.Design will continue in FY 2026. 77% 12/30/2026 Design1,759,442
5,250,0005,250,000Modernization of Busch Garden
and Rosemont Sewer Pump
Stations
769176 Construction bids were released in the third
quarter. Contract award is anticipated in the
fourth quarter.

Construction will begin in FY 2026.
9% 6/30/2027 6/30/2028 Design448,570
2,750,0009,000,000East Side Storm Drain
Improvements
765407 Planning for Phase II continued in the third
quarter.

The construction of structural rehabilitation
between Elmira Street at Wright Avenue to
North Mentor Avenue at Emerson Street will
be completed in FY 2026.
30% 9/30/2025 6/30/2028 Design812,270
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 10

Page 172 ends

12,649,27112,649,271Washington Park Stormwater
Capture Project
769218 Request for proposals for design continued in
the third quarter. Selection of Design
Consultant for City Council award is
anticipated in fourth quarter.

Community outreach, environmental studies
and design will begin in FY 2026.
0% 6/30/2026 Planning23,960
441,18116,400,000Jefferson Park Stormwater
Capture Project
769229 The feasibility study, outreach and
engagement support services began in the
third quarter.

A Feasibility Study will begin in FY 2026.
8% 6/30/2025 Planning36,638
Rose Bowl Improvements
422,0002,422,000Brookside Golf Course and
Clubhouse Capital Improvement
Projects FY 2025 - 2029
1 Project repairs and implementation continued
in the third quarter.

In FY 2026 the following upgrades and
improvements will continue - clubhouse
improvements; food and beverage
improvements; turf replacement and other
water reduction related projects; and studies,
assessments, and capital management of
future golf course improvement projects.
0% 6/30/2026 Ongoing
8,000,00034,500,000Rose Bowl Stadium Capital
Improvement Projects FY 2025 -
2029
2 Planning, upgrade implementation and
maintenance repairs continued in the third
quarter.

In FY 2026 the following improvements will
take place: improvements to the stadiums
digital displays and related components;
design and construction of improved plumbing
infrastructure; improvement to the stadiums
lighting control system; improvements to
stadium technology systems; improvements
to passenger elevator; modernization of the
ticket operations facility; implementation of a
stadium statue; project aimed at improving the
south endzone area; and project
management, planning, design, and
development of future stadium improvements.
0% 6/30/2026 Ongoing
2,347,4602,347,460Brookside Golf Course Installation
of Cantilevered Netting
775213 Construction continued in the third quarter.

Project is anticipated to be completed in the
fourth quarter.

Constructions will begin in FY 2026.
69% 6/30/2025 Construction1,630,507
Parks and Landscaping - Park Projects
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 11

Page 173 ends

185,000348,000Washington Park Security
Improvements
789601 Walkway security lighting upgrades to LED
anticipated to be completed in the fourth
quarter. Security camera installation
anticipated to be completed in the fourth
quarter.

Design of security cameras will be completed
in FY 2026. Upgrades to security lighting will
continue in FY 2026.
56% 6/30/2026 Ongoing104,482
1,494,0001,800,000Citywide Parks Playground Shade
Structure Installations - Phase I
780842 Procurement for materials began in the third
quarter.

Construction of shade structures at McDonald
Park and Victory Park will begin in FY 2026.
20% 6/30/2027 Ongoing296,023
1,385,9211,385,921Brenner Park Playground
Improvements
782003 Procurement for materials began in the third
quarter. Construction is anticipated to begin
in the fourth quarter.

Construction will begin in FY 2026.
14% 6/30/2027 Ongoing191,348
1,225,0001,225,000Hamilton Park Field
Improvements
780714 No reportable activity in the third quarter.Design will continue in FY 2026. 13% 6/30/2027 Ongoing162,990
660,0002,660,000Jackie Robinson Community
Center Improvements
789615 Advertisement for the construction
improvements occurred on February 4, 2026
and bids were received on March 11, 2026.

Construction is anticipated to begin and be
completed in the fourth quarter.

Construction of Phase I will be completed in
FY 2026.
22% 6/30/2026 Ongoing147,227
1,065,0005,200,000Vina Vieja Pickleball Courts780866 Shade structures were installed at two court benches in the third quarter.

Additional phases will begin when funding is
identified.
99% 6/30/2025 No Activity This
Quarter
1,053,202
215,0004,100,000Central Park - Clubhouse Retrofit
and Lawn Bowling Improvements
780918 Negotiation with insurance companies
continued in the third quarter.

Construction will begin when funds are
identified.
98% 6/30/2025 No Activity This
Quarter
210,842
50,000100,000Villa Parke Pool and Pool Area
Upgrades - Concept Study
780939 Planning continued in the third quarter.Project will begin in FY 2026. 0% 6/30/2027 Planning0
Arroyo Projects
150,000150,000Brookside Park - Outdoor
Basketball and Pickleball Courts -
Planning and Design Phase
775181 Planning continued in the third quarter.

Stakeholder group meetings anticipated in
the fourth quarter.

Stakeholder outreach and planning will
continue in FY 2026.
0% 6/30/2027 Planning192
1,375,0002,500,000One Arroyo Project – Upper
Arroyo Trail Loop and Lower
Arroyo Trail Loop – Construction
Phase II
773822 Environmental documentation continued in
the third quarter. Completion is anticipated in
the fourth quarter.

Phase II will begin when funds are identified.
87% 6/30/2026 Planning1,197,746
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 12

Page 174 ends

50,00050,000Hahamongna Watershed Park -
New Restrooms - Planning Phase
775203 Planning continued in the third quarter.Planning efforts will continue in FY 2026.89% 6/30/2027 Planning44,696 1,702,9001,702,900Hahamongna - Implement Master
Plan - Oak Grove Area
Improvements
775064 Habitat maintenance, monitoring, and
reporting services continued in the third
quarter.

The five-year environmental and habitat
monitoring effort was started in FY 2022 and
will continue through FY 2026.
84% 6/30/2026 Ongoing1,433,320
1,018,8031,018,803Lower Arroyo Seco - Habitat
Restoration
774105 Habitat maintenance, monitoring, and
reporting services continued in the third
quarter.

The five-year environmental and habitat
monitoring effort was started in FY 2022 and
will continue through FY 2026.
95% 6/30/2026 Ongoing970,936
2,598,4722,598,472Implement Master Plan -
Hahamongna Watershed Park -
Berkshire Creek Area
Improvements
775096 Habitat maintenance, monitoring, and
reporting services continued in the third
quarter.

The five-year environmental and habitat
sustainability plan was started in FY 2022 and
will continue through FY 2026.
98% 6/30/2026 Ongoing2,538,851
Pasadena Center Improvements
8,900,00018,800,000Restoration, Upgrades, and
Repairs of the Civic Auditorium,
Convention Center and Ice Rink
1 Construction is anticipated to be completed
in the third quarter.

The following work will continue in FY 2026:
restoration, waterproofing, and painting of the
exterior façade; and replacement of exterior
stairs. Additional work for the lower-level
interior spaces and Civic Auditorium Plaza will
be scheduled. General and emergency
repairs will be completed throughout the
facilities as needed, including retrofitting the
ballroom with LED lighting system. Parking
garage waterproofing, replacement of gutters,
and repair of expansion joints.
0% 6/30/2026 Construction
Water System
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 13

Page 175 ends

36,650,00068,650,000Distribution Mains10801 Total of 16,184 square feet of asphalt roadway, 255 square feet of concrete
roadway, 61 square feet of sidewalk, 49
linear feet of curb, 618 linear feet of gutter,
and 26 gate valve can bases were repaired
in the third quarter. In addition, water mains
and service installations on Oak Knoll Ave.
along with design for future main construction
continued in the third quarter.

Several methods for determining new water
main replacements include the priorities
established in the Water System and
Resources Plan, leak history, water main
condition assessments, support of economic
development, and the determination of
deficient fire flows. Water main projects
planned for FY 2026 include the completion of
Fair Oaks Avenue (Washington Blvd. to
Montana Street), Oak Knoll Avenue (Colorado
Blvd. to California Blvd.), Grand Avenue
(Green Street to California Blvd.), and Holly
Street (Fair Oaks Avenue to Marengo
Avenue).
91% 6/30/2030 Ongoing33,286,657
14,119,00083,445,000Sunset Reservoir Improvements10752 EPA terms and agreements continued in the third quarter. The Solar feasibility study was
completed in the third quarter. Design phase
has started in the third quarter.

In FY 2026, the upgrades to the City yards will
be completed and construction of the Sunset
Complex Project will begin.
32% 6/30/2028 Design4,463,394
5,855,00014,855,000Eaton Windstorm and Fire
Recovery - Water
10983 Construction continued at the Allen Reservoir
in the third quarter. In addition, the Don
Benito Reservoir assessment report was
finalized in the third quarter.

In FY 2026, design and construction will be
conducted for affected infrastructure.
23% 6/30/2028 Construction1,361,087
14,398,44131,951,441Arroyo Seco Canyon Project10404 Area 3 design was completed in the third quarter. Post-construction monitoring for Area
1 near-term work began in the third quarter.

In FY 2026, design plans will be completed
and construction will begin for Project Areas 1
through 3, which includes the headworks
area, the intake structure, and the spreading
basin expansion. In addition, partnering
efforts on the Devil's Gate Reservoir Pump
Back project will continue and the design will
begin.
51% 6/30/2030 Ongoing7,275,571
9,310,00026,810,000Advanced Metering Infrastructure
(AMI)
10785 Water meter survey was developed in the
third quarter. Internal resource planning for
mass deployment phase continued in the
third quarter.

Procurement will continue for program
management, AMI network, systems
integration, and smart meters in FY 2026.
5% 6/30/2028 Ongoing471,301
12,530,00017,230,000Meters and Services10816 Approximately 270 small water meters, 5 large water meters, and 6 service lines were
replaced in the third quarter.

Small and large meter installations are
planned in FY 2026. Vaults will be replaced,
while domestic service renewals, fire service
renewals, and abandonments are also
anticipated.
94% 6/30/2030 Ongoing11,764,593
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 14

Page 176 ends

3,965,0004,699,800Enterprise Asset Management
("EAM") System
10897 Solutions Design Workshops were completed
for Water Distribution. Capital Project
Solutions began in the third quarter.

Software licenses required for EAM system
installation and integrations will be purchased
in FY 2026. The project management
consultant will create a series of To-Be
Process Maps to discuss, agree, and
document the future desired business
practices for the new EAM solution
implementation. The EAM Solution
Implementor (SI) will develop a detailed EAM
Implementation Plan with Project Schedule,
Communications Plan, Education/Training
Plan, Issues Log and Change Management
Plan. The SI will also facilitate business
discovery sessions, document the design of
the new solution in a Business Process
Review document, perform data mapping and
import the City’s asset/inventory data into the
new solution, and configure the new solution
to the City’s needs.
21% 6/30/2027 Ongoing827,215
10,760,00010,760,000Monk Hill Groundwater Treatment
Improvements
10768 Specifications for the project were completed
in the third quarter. Design continued in the
third quarter.

Above-grade improvements and switchboard
procurement for Explorer Well will be
completed in FY 2026.
45% 6/30/2026 Design4,848,031
8,720,00021,885,000Booster Improvements10739 Design continued for Eagle Rock and Santa Anita Booster Stations in the third quarter.

Design of upgrades to Eagle Rock, Santa
Anita, and Atlanta Booster Stations will be
completed in FY 2026. The construction of
Atlanta Booster Station upgrades will begin
and booster pumps will be replaced as
required.
82% 6/30/2026 Design7,158,204
1,230,0007,750,000Reservoir Improvements109310 The concept design for the Don Benito Reservoir Replacement was completed in the
third quarter.

Reservoir improvements will be performed as
needed.
88% 6/30/2030 Planning1,085,119
2,425,0004,225,000Emergency Generators - Water107911 No reportable activity in the third quarter.Preliminary design and procurement of stationary generators at wells and booster
stations will begin in FY 2026.
65% 6/30/2030 No Activity This
Quarter
1,565,684
10,319,00010,809,000Well Improvements107412 It has been determined that the Parke Well pipeline realignment will not be completed
since the re-alignment of the pipeline will be
incorporated into the Sunset Complex project
in the third quarter.

Construction of above-grade improvements
for Garfield Replacement Well and the Monte
Vista Well abandonment will be completed in
FY 2026. In addition, other well equipment
replacements will occur as required.
93% 6/30/2030 Ongoing9,602,906
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 15

Page 177 ends

1,230,00010,370,000New Water Well108813 No reportable activity in the third quarter.Grading of the property will be completed (shared cost with PWP's Power division).
91% 6/30/2030 No Activity This
Quarter
1,124,974
8,412,67440,212,674Water Reuse Project101314 Several meetings with the U.S. Bureau of Reclamation were held about the request for
an extension of the federal funding
agreement, which expires on July 31, 2026 in
the third quarter.

A collaboration with partners to develop an
advanced water treatment project will
continue and a feasibility study will be
prepared.
93% 6/30/2030 Ongoing7,856,218
585,000725,000Water SCADA Improvements108715 SCADA communication upgrades included installing a new repeater antenna at Eagle
Rock Reservoir and new communication
systems at Rutherford Booster Station in the
third quarter.

Enhanced SCADA communication through
radio, cellular, and fiber systems will be
implemented in FY 2026. A radio survey will
be done. In addition, SCADA software and
server upgrades will be completed.
88% 6/30/2030 Ongoing512,629
3,175,0005,342,200Customer Information System
Managed Services - Water
109616 Enhancements of the Customer Information
System continued in the third quarter.

Additional CIS system enhancements and
upgrades will continue to add benefits to PWP
customers and staff in FY 2026.
61% 6/30/2030 Ongoing1,940,280
465,000615,000Radio Equipment Replacement -
Water
108617 Scope of work to City Council is anticipated
in the third quarter. In addition, contract
execution and purchasing are targeted for
this fiscal year, with deployment and
integration starting later this fiscal year as
well.

In FY 2026, a radio replacement plan will be
developed, and the radio replacements will
begin implementation.
0% 6/30/2030 Planning0
210,00018,305,000Water & Power Headquarters109718 No reportable activity in the third quarter.A needs assessment will be conducted in FY 2025. PWP will begin identifying potential
sites for the future headquarters.
0% 6/30/2030 No Activity This
Quarter
0 1,356,0001,618,500Management Information Systems108319 Relevant subscriptions remained current and renewed as required in the third quarter.

The following work will be completed /
continue in FY 2026: Implementation of
vulnerability assessment recommendations,
expansion of security systems, installation of
Cloud system management and network
equipment, and procurement of
miscellaneous hardware and software.
41% 6/30/2030 Ongoing552,087
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 16

Page 178 ends

11,053,00019,053,000Customer Driven - Mains, Meters,
and Services
108220 A total of 11 water service applications with
deposits and 149 fire flow testing applications
were received from customers and
developers in the third quarter. In addition, 7
projects were installed, including 9 domestic
and irrigation services, 5 fire services, 7
meter changes, and 4 service abandonments
in the third quarter.

Customer driven installations of new water
meters, services and mains, fire hydrant, gate
valves, and services, including final paving of
the trenches will be completed in FY 2026.
86% 6/30/2030 Ongoing9,533,077
1,025,0001,270,000Geographic Information System
(GIS) Enhancements
108421 Migration to the utility network continued in
the third quarter. However, there is an
expected delay due to data compatibility
issues. A resolution plan is in progress, with
completion potentially extending into the first
or second quarter of FY 2027.

Desktop workstation for ArcGIS Pro and GIS
Software will be installed in FY 2025. In
addition, utility network integration and
training are planned.
71% 6/30/2030 Ongoing726,892
361,491431,491Field Services and Meter Reading
Automation
101222 Vendor‑led training covered core systems,
supported program and system upgrades,
and provided related user training in the third
quarter. In addition, maintenance on
handheld equipment to apply upgrades, fix
errors, and replace defective devices in the
third quarter.

Field Services purchase of new meter reading
hardware coupled with professional services
for the upgrade to cloud capability will be
implemented in FY 2026.
46% 6/30/2030 Ongoing168,039
10,533,00010,593,000Treatment Systems109123 The project is completed in the third quarter.The Wadsworth Groundwater Treatment Plant may require refinement for operational and
optimization needs including addressing
existing supporting electrical, mechanical and
civil infrastructure.
98% 6/30/2030 Completed10,269,958
335,000335,000Water Operations / Training and
Storage / Work Shop
109024 No reportable activity in the third quarter.Grading, paving, fencing, and the installation of construction debris storage bays with
canopy will be completed in FY 2025.
33% 6/30/2030 No Activity This
Quarter
110,984
3,503,0463,503,046Water and Power Facilities
Modernization
105626 A request for a quote on rubberized cement
was issued in the third quarter.

In FY 2026, the City yards parking lot will be
repaved.
85% 6/30/2030 Construction2,969,567
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 17

Page 179 ends

445,000925,000Facilities Site Improvement
Initiative
109227 Landscaping restoration at Thomas
Reservoir was completed in the third quarter.

Following the Eaton Fire, the previously
installed landscaping had been destroyed
and required a complete restoration of the
irrigation system and the plantings. In
addition, design for Woodbury Well has been
completed and installation of the landscaping
will begin in March 2026.

The project will address water loss by building
infrastructure to capture water loss onsite and
return it to the groundwater table. Leak
detection devices on water service lines will
be expanded and landscape retrofits will be
implemented at water facilities.
45% 6/30/2030 Ongoing198,446
Electric System
41,620,00066,170,000Subtransmission Path 2 Upgrade32821 Discussions with the cable manufacturer regarding cable length tolerances were
ongoing in the third quarter.

Procurement of new Path 2 underground
cables will be completed in FY 2026.
5% 6/30/2027 Planning1,933,337
17,868,57133,868,5714kV to 17kV Distribution System
Conversion Program
32272 Partial Conversion of F2 was released for
construction in the third quarter.

The 4kV to 17kV conversions of the F2, F5,
and F8 circuits will begin in FY 2026.

Additional conversion projects may occur
based on operational needs or to prepare for
major developments.
67% 6/30/2030 Ongoing11,903,576
8,984,42711,984,427Conductor Replacement Program32263 The Washington Cable Upgrade Project was released for construction in the third quarter.

The cable replacement on the
Washington Circuit will be completed in FY
2026. In addition, other projects may be
completed as needed to mitigate the risk of
failure.
101% 6/30/2030 Ongoing9,036,467
2,545,0002,545,000Subtransmission Cable Upgrade
(34-8)
32864 No reportable activity in the third quarter.In FY 2026, the 34-8 subtransmission line upgrade between Glenarm Receiving Station
and Oak Knoll Substation will be completed.
1% 6/30/2026 Planning32,420
17,506,35638,487,056Advanced Metering Infrastructure
(AMI)
31425 Request for Proposal has been drafted in the
third quarter. In addition, internal resource
planning for mass deployment phase
continued in the third quarter.

Procurement will continue for program
management, AMI network, systems
integration, and smart meters in FY 2026.
5% 6/30/2028 Ongoing912,740
28,160,00028,260,000Glenarm Energy Storage Systems32066 Design phase completed in the third quarter.

In addition, the bid for construction is
anticipated to posted in March . The bid
award is anticipated to completed in the
fourth quarter.

Work includes permitting, planning, site
preparation, design and equipment, and
construction/installation of a 25 MW / 4 hour
energy storage system in FY 2026.
4% 6/30/2027 Design1,142,183
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 18

Page 180 ends

5,036,50086,626,500Broadway Energy Storage
Systems
32757 The California Environmental Quality Act
(CEQA) work continued in the third quarter.

Tribal Cultural Resources Study for the
project site continued in the third quarter.

Planning, site preparation, and permitting will
continue in FY 2026.
10% 6/30/2030 Ongoing486,498
11,070,00023,070,000Electrical Vault Replacement and
Reinforcement Program
32299 A total of six full vault restorations were
completed In the third quarter.

A total of 50 vaults and/or pull boxes will be
reinforced, replaced, or have their
frame/cover replaced in FY 2026.
86% 6/30/2030 Ongoing9,550,480
1,999,0004,249,000Substation Switch Replacement
Program
328410 No reportable activity in the third quarter.Six substation switches are expected to be replaced in FY 2026.
8% 6/30/2029 Design167,118
9,480,35815,960,358GT-3 and GT-4 Capital Equipment
Refurbishments
318611 Contract negotiations for the Balance of Plant
(BOP) Control System upgrade continued in
the third quarter.

Planned work includes upgrades to the GT-3
and GT-4 Turbines & Blowout Preventers
(BOP) Control System, upgrades to the hot
section of GT-3 (e.g. combustor upgrade),
GT-3 and GT-4 Automatic Voltage Regulator
and miscellaneous improvements, re-coating
of GT-4 Cooling Tower Basin, and if needed ,
installation of GT-3 and GT-4 Ammonia
Continuous Emission Monitoring System
(CEMS) in FY 2026.
61% 6/30/2030 Ongoing5,822,233
37,760,50338,160,503GT-1 and GT-2 Capital Equipment
Refurbishments
318212 No reportable activity in the third quarter.Planned work includes Generator Step Up (GSU) Transformer Containment;
replacement of the SCR Catalyst on GT-1;
painting of both GT-1 and GT-2, and if
needed, installation of GT-1 Ammonia
Continuous Emissions Monitoring Systems
(CEMS) in FY 2026.
88% 6/30/2030 Ongoing33,338,820
9,537,50016,337,500Distribution Switch Replacement
Program
323113 Four switches were installed and replaced in
the third quarter.

A total of 17 distribution switches will be
replaced based on oil test results and a field
evaluation in FY 2026.
93% 6/30/2030 Ongoing8,891,929
7,186,00013,362,878Substation Modernization
Program
323514 Field installation and commissioning for the
Hasting Unit 1 transformer tap changer and
temperature controller upgrades were
completed in the third quarter.

Transformer upgrades for Chester Unit 1,
Eastern Unit 1, Hastings Unit 1, and Oak
Knoll Unit 4 substations will be completed in
FY 2026. In addition, the designs for the
Eastern Unit 1 Load Tap Changer (LTC)
replacement and station electric service will
be completed, as well as minor capital
upgrades at multiple substations.
99% 6/30/2030 Ongoing7,080,750
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 19

Page 181 ends

5,725,8006,125,800GT-5 Capital Equipment
Refurbishments
328015 The nitrogen oxide (NOx) pump upgrade
began in the third quarter.

Work planned for FY 2026 includes upgrade
of GT-5 nitrogen oxide pump, blade
replacement, and miscellaneous
improvements.
78% 6/30/2030 Ongoing4,494,264
4,604,75816,814,419Receiving Station 35kV Upgrades326216 The development of the 35 kV Ground Switch, 35 kV Disconnect, and 35 kV
Capacitor specifications were initiated in the
third quarter.

The upgrade of five 35 kV Circuit Breaker
Potential Transformers and Fuses will be
completed in FY 2026. The contracts for the
35 kV Circuit Breaker, 35 kV Disconnect, and
35 kV Ground Switch will be awarded and
procurement initiated. In addition,
specifications for the capacitor bank upgrade
will be initiated and minor upgrades to the
receiving station will be completed.
80% 6/30/2030 Ongoing3,677,945
4,960,0008,960,000Distribution Transformer
Replacement Program
323717 Approximately four transformers were
replaced/installed in the third quarter.

A total of ten transformers will be replaced
based on field inspection, evaluation criteria,
or a modeling indication of overloading in FY
2026. In addition, ten transformers will be
upgraded in relation to maintaining or
improving service quality.
113% 6/30/2030 Ongoing5,586,957
15,172,00025,172,000Electric Vehicle Charging
Infrastructure
322518 Design for the installation of 24 Level 2
chargers at Playhouse Park was completed
in the third quarter. Marengo project has
reached the 50% design milestone in the
third quarter. City Council approved the
Progressive Design-Build method to
streamline delivery at the Avon Ramp and
Arroyo Depot locations.

Installation of additional electric vehicle
charging stations will be complete at the City
Yards and Arroyo EV Charging Depot and
initiated at Marengo Garage in FY 2026. In
addition, EV chargers will be upgraded across
the city, and the design and EV charger
procurement will continue for the Avon Ramp
EV project.
53% 6/30/2030 Planning8,107,107
8,115,00012,101,000Customer Information System
Managed Services - Power
327119 Enhancements of the Customer Information
System continued in the third quarter.

Additional CIS system enhancements and
upgrades will continue to add benefits to PWP
customers and staff in FY 2026.
45% 6/30/2030 Ongoing3,671,849
25,456,75037,856,750Installation of Low Voltage
Electrical Services
322120 Approximately 80 residential and commercial
electric service installation requests covering
new services, modifications, and upgrades
from the public right-of- way for loads of 400
amps or below, were completed in the third
quarter.

Modifications, upgrades, telecom, unmetered
service, or new low voltage electric service
will be installed as requested in FY 2026.

Installation of service conductors to provide
electrical service will be installed as needed.
98% 6/30/2030 Ongoing25,054,537
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 20

Page 182 ends

4,126,0006,526,000Fire Threat Mitigation Tier 2 Areas325821 Design for Phase 1 of the Lida Street high- voltage undergrounding project continued in
the third quarter.

Poles and transformers will be replaced within
the Tier 2 area in FY 2026. In addition,
research of the possibility of converting the
high voltage street light circuit on Lida St. to
low voltage will take place in conjunction with
Public Works Street Lighting and Traffic
Systems.
93% 6/30/2030 Planning3,856,758
22,575,00022,119,000Installation of High Voltage
Electrical Services
322022 Two private property electric service
installation requests exceeding 400 amps
were completed in the third quarter.

Modifications, upgrades or new high voltage
electric services will be completed as
requested in FY 2026. Installation of cables,
conduits, switches, transformers, and meters
will be installed as necessary.
98% 6/30/2030 Ongoing22,017,530
4,730,0007,730,000Fire Threat Mitigation Tier 3 Areas325723 Canyon Close construction was completed in the third quarter.

Complete conversion of high voltage
distribution lines to underground on Canyon
Close Rd., Fox Ridge Dr., Florecita Dr. and
Crestford Dr. will be completed in FY 2026.
70% 6/30/2029 Ongoing3,292,598
303,0001,503,000Customer Solar/Storage System
Interconnections and Related
Distribution System Upgrades
328724 Approximately 38 solar interconnections to
electric system were completed in the third
quarter.

Work planned in FY 2026 includes the review
and process of customer applications for
installation of solar/storage systems and
interconnect with customer solar/storage
systems by replacing customers’ existing
electrical meters with bi-directional meters
upon inspection and approval of the installed
systems. Additionally, upgrade distribution
system infrastructure as necessary to ensure
safe operation of installed systems and
compliance with power quality standards.
80% 6/30/2030 Ongoing243,156
164,00036,326,000Emerging New Technology
Development and Testing
328825 Resource Planning (RP) transitioned the
municipal solar implementation to Power
Delivery in the third quarter. Planning has
began for the Feed-in-Tariff program in the
third quarter.

In FY 2026, potential work for the installation
and testing of a distributed energy resource
rooftop wind microturbine pilot project will
begin.
1% 6/30/2030 Planning2,037
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 21

Page 183 ends

7,588,2788,792,878Enterprise Asset Management
("EAM") System
314026 Solutions Design Workshops completed for
Electric Distribution in the third quarter. In
addition, Capital Project Solutions began in
the third quarter.

Software licenses required for EAM system
installation and integrations will be purchased
in FY 2026. The project management
consultant will create a series of To-Be
Process Maps to discuss, agree, and
document the future desired business
practices for the new EAM solution
implementation. The EAM Solution
Implementor (SI) will develop a detailed EAM
Implementation Plan with Project Schedule,
Communications Plan, Education/Training
Plan, Issues Log and Change Management
Plan. The SI will also facilitate business
discovery sessions, document the design of
the new solution in a Business Process
Review document, perform data mapping and
import the City’s asset/inventory data into the
new solution, and configure the new solution
to the City’s needs.
40% 6/30/2027 Ongoing3,008,801
2,048,00071,030,233Fair Oaks and Brookside
Substation Upgrades
326727 Contract issued for new substation
transformers for the Fair Oaks upgrade
project in the third quarter. Design continued
in the third quarter.

Major materials contracts will be awarded for
substation transformers and switchgear, and
equipment ordered in FY 2026. In addition,
the design build specifications for Fair Oaks
and Brookside upgrades will be completed.
15% 6/30/2030 Ongoing306,115
1,421,0002,792,000Oak Knoll Substation Upgrades327728 Design phase for the Oak Knoll substation upgrades, supporting the 34‑8 circuit breaker
and protection/control upgrades, began in the
third quarter.

The procurement for Oak Knoll 35kV switch
upgrades will be completed and construction
initiated in FY 2026.
5% 6/30/2030 Ongoing77,061
16,812,00022,812,000Emergency Transmission and
Distribution System
Replacements
322229 One emergency replacement project was
completed in the third quarter.

Emergency replacements to transmission,
distribution, and substation systems will be
completed on an as needed basis in FY 2026.
97% 6/30/2030 Ongoing16,349,781
7,344,00018,453,336Station Transformer Upgrades325930 Contract negotiations continued in the third quarter. The project is currently delayed due
to the need for a second round of bid
specifications following earlier unsuccessful
contract negotiations.

The Mobile Transformer equipment drawings
will be approved. In addition, work will be
performed on the design of the housing and
station upgrades in FY 2026.
7% 6/30/2030 Ongoing542,057
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 22

Page 184 ends

10,995,55620,995,556Deteriorated Pole Replacement
Program
323331 Approximately 41 poles were replaced in the
third quarter.

A total of sixty utility poles will be replaced
based on inspection and evaluation criteria in
FY 2026. In addition, funds are required to
cover Southern California Joint Pole
Committee charges that account for joint pole
work performed by other utilities.
98% 6/30/2030 Ongoing10,794,653
8,453,0008,853,000Power Facility Wastewater /
Storm Water Capture and
Treatment
327032 The stormwater treatment feasibility study
continued, and both the Final Glenarm
Onsite Alternatives Report and Draft Glenarm
Offsite Alternatives Report were prepared
during the third quarter. In addition, the offsite
disposal option remains under discussion
with Pasadena Unified School District
(PUSD) and the City.

Work planned for FY 2026 includes the
replacement of the Oily Water Separator;
installation of a stormwater capture
mechanism, and address any needs of storm
and waste water treatment, storage, recycling
and disposal facilities at the power plant on an
as-needed basis.
2% 6/30/2030 Ongoing153,020
2,241,0314,154,709T.M. Goodrich Receiving Station
Upgrades
326333 Field preparations for the TMG Bank 1 and
TMG Bank 2 transformer cooling system
upgrades were initiated in the third quarter.

Design for the 220 kV Metering and
Disturbance Fault Recorder (DFR) will be
completed and procurement initiated in FY
2026. In addition, a transformer cooling study
and station service upgrade design will be
initiated.
70% 6/30/2030 Ongoing1,572,528
3,271,0003,991,000Seismic and Reliability Upgrades
of Power Facilities
319634 Construction on the seismic upgrades for
Glenarm Units 1 and 2 continued in the third
quarter.

Design and construction of the seismic
upgrade of the Glenarm 4kV substation will be
completed in FY 2026.
64% 6/30/2030 Ongoing2,092,047
7,913,66611,413,666Transmission System
Enhancements
319535 Southern California Edison issued an invoice
for the TMG Letter Agreement and City
issued payment in the third quarter.

In FY 2026, replacement of an aging
communication device, RFL 6780
transmitter/receiver, will begin. In addition,
other transmission equipment and
infrastructure at TM Goodrich Receiving
Station will be upgraded or replaced.
94% 6/30/2030 Ongoing7,468,342
230,000710,000Replacement of Power Plant
Instruments and Controls
323237 Ordered a water valve for the turbine
nitrogen oxide (NOx) emission‑reduction
system for anticipated replacement in the
third quarter.

Procurement of instruments and controls at
the Glenarm Power Plant will occur on an as-
needed basis in FY 2026.
1% 6/30/2030 Ongoing2,280
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 23

Page 185 ends

1,110,5002,782,500Power Substation Weatherizing
Enhancements
327938 Weatherization upgrades were completed at
the Villa, Del Mar, and Oak Knoll control
house building bases, as well as at the
Eastern 1A and 1B transformers, the Chester
3B transformer, the Del Mar Unit 3
switchgear, and the Power Plant Eastside
switchgear in the third quarter.

Two substations will be enhanced with
protective weatherproof high-temperature
paint coating and weatherization upgrades in
FY 2026.
74% 6/30/2030 Ongoing821,658
1,702,0001,917,051Security, Access Control, and
Lighting Program at Power
Facilities
324839 No reportable activity in the third quarter.Installations for the security, access control, and lighting systems at Wilson, Villa, and Del
Mar substations will be completed in FY 2026.
72% 6/30/2028 Construction1,224,713
596,521796,521Distribution System GIS
Enhancements
324640 No reportable activity in the third quarter.In FY 2026, PWP will continue to enhance the GIS to meet PWP operational immediate and
future needs.
6% 6/30/2030 Ongoing35,079
8,169,52813,069,528Distribution System Expansion
Program
322841 Caltech-4 circuit design continued in the third
quarter.

Underground infrastructure for customer
related projects will be enhanced and
expanded in FY 2026.
96% 6/30/2030 Ongoing7,814,501
985,0002,763,000Villa Substation Upgrades327842 Installation of the Glenarm remote switch controller and device equipment supporting
the Villa substation upgrades continued in the
third quarter.

The procurement for Villa 35kV switch
upgrades will be completed in FY 2026.
14% 6/30/2030 Ongoing133,830
737,0001,337,000Fiber Optic Cable Expansions /
Overbuilds
324443 No reportable activity in the third quarter.The installation of overhead fiber-optic cables along El Mirador from Colorado Blvd. up to El
Mirador Tower on Glen Oaks Blvd. will be
completed in FY 2026. In addition, work in
coordination with Department of Technology
to complete fiber projects to meet PWP
operational and system needs will continue.
29% 6/30/2030 Ongoing210,367
2,760,0004,382,696Supervisory Control and Data
Acquisition (SCADA) System
Expansion
324544 Design and programming for the backup
SCADA backhaul network were completed in
the third quarter.

Procurement and acceptance testing for
Connex 30 substation gateways, and Jungle
Mux fiber optic multiplexer upgrades will be
completed in FY 2026. In addition, the design
and programming for the Eastern Unit 1 SEL-
2032-to-SEL RTAC project will be completed.
27% 6/30/2030 Ongoing732,707
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 24

Page 186 ends

1,609,0002,980,000Chester Substation Upgrades327345 Design was completed in the third quarter.

Construction drawings for the Chester
substation upgrades supporting 34‑37 circuit
breaker and protection/control upgrades
were distributed in the third quarter.

Procurement for Chester 35kV switch
upgrades will be completed and construction
initiated in FY 2026.
11% 6/30/2030 Ongoing176,108
2,474,0002,961,500Management Information Systems
- Power
323946 Relevant subscriptions remained current and
renewed as required in the third quarter.

The following work will be completed /
continue in FY 2026: Implementation of
vulnerability assessment recommendations,
expansion of security systems, installation of
Cloud system management and network
equipment, and procurement of
miscellaneous hardware and software.
43% 6/30/2030 Ongoing1,065,745
1,195,0001,345,000Radio Equipment Replacement -
Power
324347 Scope of Work is scheduled for City Council
in the third quarter. In addition, contract
execution and purchasing are targeted for
this fiscal year, with deployment and
integration expected to begin later this fiscal
year as well.

In FY 2026, a radio replacement plan will be
developed, and the radio replacements will
begin implementation.
0% 6/30/2030 Planning0
1,000,0001,800,000Customer Load Research
Program
324148 Approximately 41 instrument rated meters
were replaced in the third quarter.

The ongoing replacement of failing or analog
electric customer meters with load
research/automated metering equipment and
connection to the MV-90 system will continue
in FY 2026.
86% 6/30/2030 Ongoing864,756
899,1041,981,10435kV Subtransmission System
Upgrades
328349 The study agreement from Southern
California Edison for the increase import
capacity expansion project is under review in
the third quarter.

In FY 2026, a study will be initiated to
evaluate options to upgrade the 35 kV
subtransmission system and the 220 kV grid
interconnections.
0% 6/30/2030 Ongoing0
2,744,3203,144,320Power Production Facility
Improvements
323650 A request for proposal for the Remote
Intelligent Gateway (RIG) project was posted
in the third quarter and the construction is
planned for completion by the end of this
calendar year.

Work planned for FY 2026 includes
installation of a new perimeter wall at Azusa;
Remote Intelligence Gateway (RIG), and
miscellaneous facility improvements on an as-
needed basis.
64% 6/30/2030 Ongoing1,750,069
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 25

Page 187 ends

5,536,0008,537,859Santa Anita 35kV Receiving
Station Upgrades
326051 Design was completed and construction
drawings for the Santa Anita RACK‑1 North
Bus linear coupler relay relocation were
released in the third quarter. In addition,
higher‑capacity backup battery chargers
were received and design was completed for
the Santa Anita electric service upgrade to
replace E‑8 backup circuit with Kinneloa
circuit in the third quarter. However, the
project is delayed due to supplier issues with
required protection relays, which are six
months overdue and have no alternate
source.

The engineering design and construction will
be initiated in FY 2026 for the removal of the
obsolete panels/racks for the Santa Anita
Historic Building. In addition, design for linear
coupler, transfer trip, wye potential
transformer, and station service upgrades will
be initiated.
72% 6/30/2030 Ongoing3,986,271
390,00033,995,000Water & Power Headquarters328552 No reportable activity in the third quarter.Needs assessment efforts will continue in FY 2026. PWP will begin identifying potential
sites for the future headquarters.
0% 6/30/2030 No Activity This
Quarter
0 2,795,0004,195,000Customer Facility Replacements326953 No reportable activity in the third quarter.Two Resettable Fault Interrupters (RFIs) will be replaced at Metro Tracking Stations in FY
2026. In addition, ten aging interrupter
switches will be replaced and new covers
installed as necessary.
98% 6/30/2030 Ongoing2,733,012
20,949,28220,949,282Water and Power Facilities
Modernization
317554 Requested quote for rubberized cement in
the third quarter.

Scheduled resurfacing of the roadway and
parking spaces around the City Yards building
at 311 West Mountain St. will be completed in
FY 2026.
93% 6/30/2026 Construction19,500,374
3,559,8475,959,847Power System Equipment325455 Procurement for major tools and test equipment continued, and three Bantam Plus
Portable Electric Meter Test Sets were
received in the third quarter. In addition,
multiple purchase orders for testing
equipment have been issued or are pending
approval, and MSA gas detectors have been
purchased in the third quarter.

Major tools and test equipment will be
purchased upon field evaluation in FY 2026.
52% 6/30/2030 Ongoing1,843,669
2,862,6033,139,692Santa Anita 17kV Substation
Upgrades
326156 Completed field installation and
commissioning for the 17 kV open‑air rack
potential transformer upgrades in the third
quarter. In addition, installed additional 17 kV
open‑air rack animal guards in the third
quarter.

In FY 2026, the Santa Anita Bank 5 Tap
Changer Under Load (TCUL) will be
upgraded. In addition, the design and
procurement for the wye-connected potential
transformer upgrades will be initiated.
71% 6/30/2030 Ongoing2,039,425
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 26

Page 188 ends

2,287,0003,887,000Distribution Volt/Var
Enhancements Program
325257 No reportable activity in the third quarter.Voltage correction projects will occur when determined by recorded voltage abnormalities
or when identified ahead of requested
upgrades in FY 2026.
87% 6/30/2030 Ongoing2,000,879
1,879,0006,686,847Primary Dispatch Facility
Remodel
325358 Procurement preparation has began for the
Progressive Design‑Build in the third quarter.

In addition, contract development continued
in the third quarter.

The pursuit of a Progressive Design Build
(PDB) contracting method for the Primary
Dispatch Center project is underway and
expect to select a PDB firm in FY 2026. In
addition, it is anticipated that the PDB firm will
initiate scope, design, and site reviews to
develop a guaranteed maximum price. PWP
crews will complete equipment removals
and/or relocations as necessary.
11% 6/30/2030 Planning198,342
2,670,0005,614,720Glenarm Receiving Station
Upgrades
326659 Design has been completed in the third
quarter. Construction drawings were
distributed for the 34-37 circuit breaker and
protection/control upgrade in the third
quarter. In addition, new primary dispatch
inverters were received in the third quarter.

Procurement, design, field installation, and
acceptance testing for the Glenarm RSC and
RSD 35kV protection and control upgrades
will be completed in FY 2026.
90% 6/30/2030 Ongoing2,412,894
1,430,0002,830,000Power Supply Integrated
Resource Planning and Design
324960 Work continued on integrating the approved
Optimized Strategic Plan (OSP) workflow into
the 2028 Integrated Resource Plan (IRP),
particularly with respect to the Waypoint and
Resolution 9977 compliance efforts in the
third quarter.

In FY 2026 staff will work on updating the
Optimized Strategic Plan to inform the next
detailed IRP for FY 2028.
87% 6/30/2026 Ongoing1,246,605
5,276,3525,276,352Substation Oil Containment312861 No reportable activity in the third quarter.The construction of an oil containment system for Santa Anita Substation Units 1 and 2 will
be completed in FY 2026. Additionally,
modifications to the existing oil containment
system in banks 4 and 5 will be completed.
84% 6/30/2026 Ongoing4,428,109
1,382,9001,782,900Power Supply Facility Security323462 Installation of security systems and upgrades on the Glenarm Plant continued in the third
quarter.

Procurement and installation of new and/or
improved security systems with a focus on
Glenarm Plant will continue, and work will be
performed at the Broadway and Azusa Hydro
Plants on an as-needed basis in FY 2026.
53% 6/30/2030 Ongoing737,261
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 27

Page 189 ends

1,631,0002,086,000Geographic Information System
(GIS) Enhancements
324063 Migration to the utility network continued in
the third quarter. However, there is an
expected delay due to data compatibility
issues. A resolution plan is in progress, with
completion potentially extending to FY 2027.

Desktop workstations will be installed in FY
2026. In addition, utility network integration
and training are planned.
70% 6/30/2030 Ongoing1,144,950
9,428,9999,428,999Power Transmission Program319064 Los Angeles Department of Water and Power is the operating agent for this project
continues to submit invoices for work
performed on the porcelain insulator
replacement project in the third quarter. In
addition, invoices for other Pacific Direct
Current Intertie Transmission Line (PDCI)
project upgrades are recorded under CIP
3251.

Work on the Porcelain Insulators
Replacement will be complete in FY 2026.
95% 6/30/2026 Ongoing8,984,456
607,463737,463Field Services and Meter Reading
Automation
302565 Vendor‑led training covered core systems,
supported program and system upgrades,
and provided related user training in the third
quarter. In addition, handheld equipment
maintenance to apply upgrades, fix errors,
and replace defective devices in the third
quarter.

Field Services purchase of new meter reading
hardware coupled with professional services
for the upgrade to cloud capability will be
implemented in FY 2026.
65% 6/30/2030 Ongoing392,661
1,083,0001,567,629Power Transmission Program325166 Los Angeles Department of Water and Power is the operating agent for this project and
continues to submit invoices for prior work
orders related to the Sylmar Converter
Station's East Valve Hall HVAC System
Upgrade, Elevator Upgrade, 480V
Switchgear Replacement, OPGW Conduit
Installation, Fire Protection System and
Tower Falldown and Mitigation Design
(completed in FY 2025) in the third quarter.

In FY 2026, work will continue on replacement
of the 480V breaker switchgear at Sylmar
Converter Station (SCS) and Phase 2 of the
Fire Protection System Replacement project;
there will be an elevator upgrade at the
Sylmar SC and various smaller capital
projects will be completed.
30% 6/30/2030 Ongoing323,334
Technology Projects
3,550,0003,550,000Police Computer-Aided Dispatch
and Records Management
System Replacement
711681 Seven of nine record types were successfully
migrated in the third quarter with others
anticipated to follow in the fourth quarter as
part of archival data migration. Review of
crime mapping solution offerings continued in
the third quarter.

This project, including implementation of
additional systems and historical data
migration will be completed in FY 2026.
78% 6/30/2026 Construction2,757,814
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 28

Page 190 ends

5,406,9938,931,993DoIT Equipment Lifecycle
Replacement FY 2025 - 2029
711712 Network and server infrastructure equipment
and software updates continued as part of
planned lifecycle replacements. Progress of
the PBX replacement project continued and
the majority of the transition to enable
shutdown of the legacy PBX equipment was
completed in the third quarter. Additional
phases to upgrade Fire Stations to Teams
Phone service anticipated to be completed in
the fourth quarter.

Annual system life cycle replacement of
hardware and software will continue in FY
2026.
100% 6/30/2026 Ongoing5,410,578
3,289,3673,289,367Enterprise Building Security
Management
711633 No bid responses were received last quarter.

Resubmitting a new Request for Proposal
anticipated to post in the third quarter.

Work will continue at Washington Park and
expand to other City facilities in FY 2026.
80% 6/30/2026 Planning2,617,154
1,893,9792,733,979City Fiber Network Expansion FY
2025 - 2029
711724 The Villa Street expansion project was
completed in the third quarter. Responses to
the Request for Information (RFI) were
evaluated and discussions on next steps for
potential partnerships commenced in the
third quarter. Two contracts were awarded
related to labor, materials, and professional
services for the on-going expansion and
maintenance of the Fiber program with
contract execution anticipated to be
completed early fourth quarter.

Expansion of fiber to provide Wi-Fi services to
public parks and park facilities will begin in FY
2026.
64% 6/30/2026 Ongoing1,204,381
1,500,0001,500,000City Park Public Wifi Expansion711695 U.S. Department of Housing and Urban Development (HUD) provided approval of all
environmental reviews in the third quarter.

Contract was awarded for procurement and
installation of the Wi-Fi Equipment at all the
sites in the third quarter. Contract execution
and project kickoff is anticipated in the fourth
quarter.

Planning efforts will continue and construction
of the WiFi designs will begin in FY 2026.
10% 6/30/2027 Planning154,812
2,100,0002,100,000Mobile Data Computer
Replacement
711737 The contract was fully executed in the third
quarter. City project team members from
DoIT, Police, and BSFMD are now working
closely with the vendor to plan for a
deployment anticipated in the fourth quarter.

This project will begin when funds are
identified.
0% 6/30/2026 Planning5,082
Capital Improvement Program
FY 2026 Quarter Monitoring Report
Activity Through March 31, 2026
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2026 Status UpdateFY 2026 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
March 30, 2026 Page 29

Page 191 ends

Finance CommitteeApril 13, 2026

Finance Committee
April 13, 2026