The City Council on Monday approved a series of amendments to the Fiscal Year 2026 operating budget that will increase authorized spending by $10.8 million across multiple funds, including additional funding for outside legal services, police fleet maintenance and housing programs.
According to a staff report from the Department of Finance, the proposed amendments will add $10,806,108 in expenditure appropriations while recognizing $2,750,108 in new revenue. The General Fund’s unappropriated fund balance will decrease by $3.536 million.
The largest single adjustment will provide $3.1 million to the City Attorney/City Prosecutor Department for outside legal services. City officials said the department’s existing $2.6 million budget for outside counsel will be insufficient because of ongoing litigation and complex legal matters involving the city. The report cites a high number of time-consuming cases, including several high-profile lawsuits and advisory matters requiring outside legal expertise.
The Police Department received an additional $511,000 from the General Fund to cover fleet maintenance, repair and replacement costs. Staff said rising repair expenses for aging vehicles, delays in receiving replacement vehicles because of supply chain disruptions and previously unbudgeted vehicle upfitting costs created the shortfall.
The council also approved a funding transfer related to homeless encampment cleanups. Under the proposal, $75,000 would be transferred annually from the Refuse Fund to the General Fund to reimburse the Housing Department’s Municipal Assistance, Solutions and Hiring (MASH) program for staff time and expenses associated with cleaning encampment sites. Public Works previously handled those responsibilities.
Several housing-related amendments account for the majority of the proposed spending increases.
The Housing Department requested authority to appropriate $2.625 million from a $5 million CalHome Program award approved by the City Council in 2024. The state-funded program provides down payment assistance to low-income households and financing for the rehabilitation and construction of accessory dwelling units. The remaining grant funds are expected to be budgeted before the grant expires in July 2027.
The department also sought a year-end budget reconciliation totaling $4.381 million. Most of that amount, $4.196 million, would be appropriated from the Rental Assistance Programs Fund to address rising rental costs and administrative expenses associated with partner public housing agencies. The report states reimbursement is expected for those expenditures.
Additional housing-related appropriations include $148,000 from the Low and Moderate Income Housing Fund and $37,000 from the Inclusionary Housing Trust Fund to cover increased administrative costs.
The Libraries and Information Services Department requested recognition and appropriation of $50,108 in grant funding. The grants include $35,108 for the Lunch at the Library program, which supports summer meal and enrichment services, and $15,000 for the Civic Makers Lab for Adults initiative, which promotes civic engagement among young adults ages 18 to 24.
Another amendment will appropriate $64,000 from the Air Quality Improvement Fund to purchase two electric vehicles (EVs) for Finance Department business license inspectors. The purchase replaces a previously approved vehicle lease and adds a second vehicle.
The amendments are part of routine budget management needed to address changing operational conditions throughout the fiscal year.
Here are the remaining items on Monday’s consent calendar.
- Outward Bound Adventures Selected for Hahamongna Watershed Park Education Center Project The City Council authorized negotiations with Pasadena-based nonprofit Outward Bound Adventures to develop and operate a portion of Hahamongna Watershed Park as an environmental education and conservation center. The action will allow the city manager to enter into a pre-development agreement and negotiate final development and operating agreements for public land in the park’s annex area, following a competitive request for proposals process. Outward Bound Adventures was the sole organization to submit a proposal after the city issued a request for proposals in December. The nonprofit received a score of 81 from a city evaluation committee composed of staff from the Parks, Recreation and Community Services, Public Works and Finance departments. The organization is creating a Climate Resilience Environmental Education Center, or CREEC, at the former U.S. Forest Service compound in the park. The project would focus on environmental education, habitat restoration, workforce development and public programming while reusing six existing buildings on the site. City staff said the project aligns with goals outlined in the Hahamongna Watershed Park Master Plan, but noted that the project depends on future environmental review, permitting, feasibility studies and the acquisition of outside funding. Under the framework, Outward Bound Adventures would be required to complete structural, environmental and ecological assessments and demonstrate funding commitments before development could proceed. Staff also recommend a 20-year operating agreement with two optional 10-year extensions. No city capital funding is proposed, and all planning, development, operating and maintenance costs would be borne by the nonprofit organization.
- A $4.36 Million Contract for Final Phase of Explorer Well Project The funds will be used for the final phase of construction on the Explorer Well project, a groundwater cleanup and water supply initiative designed to improve water reliability while helping remove contaminants from the Monk Hill groundwater basin. The contract will authorize the city manager to enter into an agreement with R C Foster Corporation of Corona for the Explorer Well Above-Grade Improvements project. The contract includes a base bid of $3.79 million and a contingency of $568,875 for potential change orders. Pasadena Water and Power (PWP) owns four groundwater wells in northwest Pasadena known collectively as the Monk Hill Wells. Groundwater in the area contains volatile organic compounds and perchlorate resulting from historical disposal practices associated with the Jet Propulsion Laboratory, which is owned by NASA and managed by the California Institute of Technology. NASA identified the Explorer Well as part of a 2014 groundwater remediation plan aimed at accelerating cleanup efforts downstream from JPL. Once operational, the well will pump groundwater to the Monk Hill Treatment Plant, where contaminants will be removed before the water enters Pasadena’s distribution system. The first phase of the project, which included drilling, well construction, testing and water quality sampling, was completed in May 2025. The final phase includes installation of a well pump and motor, electrical and mechanical infrastructure, approximately 800 feet of water pipeline and construction of a building to house the equipment. Construction is expected to be completed by winter 2027. All project costs will be reimbursed by Caltech under an existing agreement with the city, resulting in no impact on the General Fund.
- A $784,328 Purchase of Four Utility Trucks for Pasadena Water and Power A $784,328 contract for the purchase of four utility trucks that Pasadena Water and Power officials say are needed to maintain reliable electric service and support emergency response operations. The contract will authorize the city manager to purchase four Ford F-550-based companion trucks with custom utility upfitting from Santa Margarita Ford of Rancho Santa Margarita. The contract includes a base amount of $713,025 and a contingency of $71,303 for potential change orders. According to a staff report, the vehicles will replace four aging trucks currently used by the utility’s Power Delivery Division. The oldest vehicle in the fleet slated for replacement is a 2003 model, while the remaining three are 2015 vehicles. Department officials said the trucks have become increasingly expensive to maintain and less reliable for daily field operations. The vehicles are used by crews responsible for maintaining Pasadena’s electric transmission and distribution systems, transporting personnel, tools, equipment and materials needed for construction, maintenance and emergency repairs. City staff evaluated zero-emission vehicle alternatives but determined that no commercially available electric vehicle currently meets the requirements for the flatbed utility-style configuration needed for the work. As a result, officials recommended purchasing gasoline-powered Class 5 medium-duty trucks. Funding for the purchase is included in Pasadena Water and Power’s Capital Improvement Program (CIP) budget. Officials said the expenditure will have no impact on the city’s General Fund and is expected to occur during Fiscal Year 2027.
- $10 Million in On-Call Construction Management Contracts The City Council approved two contracts worth up to $10 million combined over five years to provide construction management and inspection services for Pasadena Water and Power’s capital improvement projects. The proposed agreements authorized contracts with Pasadena-based E2 Consulting Engineers Inc. and Irvine-based Accenture Infrastructure and Capital Projects LLC. Each contract would have a not-to-exceed value of $5 million and would be used on an as-needed basis to support water utility infrastructure projects. According to a staff report, Pasadena Water and Power relies on a combination of in-house staff and outside consultants to oversee major capital projects, including pipeline replacements, well improvements, reservoir upgrades and booster station rehabilitation projects identified in the utility’s 2020 Water System and Resources Plan. Construction management services may include contractor coordination, scheduling and contract administration, while inspection services involve monitoring construction activities to ensure compliance with project specifications, safety requirements and workmanship standards. E2 Consulting Engineers received the highest evaluation score, 89 points, followed by Accenture Infrastructure and Capital Projects with 84.6 points. Two Pasadena firms submitted proposals, including E2 and Rayaec Inc. City staff said multi-year contracts provide quicker access to specialized expertise while reducing the administrative burden of procuring services on a project-by-project basis. The contracts will support projects funded through Pasadena Water and Power’s capital improvement program, including well, reservoir and booster station upgrades. Officials estimate approximately $2 million will be spent during Fiscal Year 2027. The contracts would have no impact on the city’s General Fund.
- $8.4 Million Contract for First Utility-Scale Battery Storage System A $8.39 million construction contract for Pasadena’s first city-owned utility-scale battery energy storage system, a project officials say is critical to achieving the city’s goal of sourcing 100% carbon-free electricity by 2030. The contract will authorize the city manager to enter into a two-year agreement with Baker Electric & Renewables LLC of Escondido to construct a 25-megawatt lithium iron phosphate battery energy storage system adjacent to the Glenarm Power Plant. The contract includes a base amount of $6.99 million and a contingency of $1.4 million for potential change orders. City officials describe the Glenarm Battery Energy Storage System, or BESS, as a key component of Pasadena Water and Power’s long-term clean energy strategy. The four-hour storage facility will allow excess electricity generated during periods of high renewable energy production to be stored and dispatched later when demand is higher. The project advances climate and energy goals established by the City Council, including a 2023 resolution declaring a climate emergency and committing Pasadena to obtaining all of its electricity from carbon-free sources by the end of the decade. In 2024, the City Council approved a 15-year agreement with Glenarm BESS LLC to design, own and operate the facility on behalf of the city. Under that agreement, Pasadena Water and Power is responsible for constructing the infrastructure needed to connect the system to the city’s electric grid. Four companies submitted bids for the project. Baker Electric’s $6.99 million proposal was the lowest responsive bid, ahead of firms from Chino, Sacramento and Fresno. The project is supported by a $9.66 million grant from the California Energy Commission. Construction must be completed by June 30, 2027, to satisfy grant requirements. Officials said the grant is expected to offset eligible project costs, resulting in no impact on the city’s General Fund.
- A Five-Year Contract for Vehicle Accessories and Fleet Equipment The proposed agreement will authorize the city manager to enter into a contract with H&H Auto Parts Wholesale of Arleta for the as-needed purchase of vehicle accessories and related parts used by the Department of Public Works’ Building Systems and Fleet Management Division. According to a staff report, the city relies on a diverse fleet of vehicles and equipment to support field operations, maintenance work, inspections, transportation services and other municipal functions. Fleet staff are responsible for ensuring those vehicles remain operational and properly equipped for daily use. Items covered under the contract include running boards, ladder racks, step bars, bumpers, lighting components, switches and other vehicle accessories. City officials said the equipment improves vehicle accessibility, operator safety and overall functionality for employees working in the field. The accessories are also used to outfit newly purchased vehicles entering service and to replace equipment damaged through normal wear and tear. Staff said maintaining a reliable source of replacement parts is essential to keeping vehicles operational and ready for deployment. H&H Auto Parts Wholesale submitted the lowest responsive bid at $55,164 annually, compared with a bid of $91,020 from Berkeley-based Blue Angel International LLC. The contract includes a 10% contingency to address unforeseen operational needs over the five-year term. Funding will come from the Fleet Maintenance Fund, with no impact on the General Fund, according to city staff.
- $364,067 Contract for Emergency Vehicle Lighting Equipment The agreement authorizes the city manager to enter into a contract with Professional Police Supply Inc., doing business as Adamson Police Products, for the as-needed purchase of emergency vehicle light bars, LED warning lights, siren systems, control modules and related equipment. The contract includes a base amount of $330,970 and a contingency of $33,097 for unforeseen needs. According to a staff report, the Department of Public Works’ Building Systems and Fleet Management Division is responsible for maintaining vehicles used by the Police and Fire departments for emergency response, traffic control and other public safety operations. Officials said standardized emergency lighting systems are critical for fleet readiness, operational efficiency and public safety. The city currently uses Whelen emergency lighting equipment across its public safety fleet. Staff said maintaining a consistent equipment platform improves compatibility with existing vehicle configurations, simplifies maintenance and ensures continued access to replacement parts. Emergency lighting and warning systems play a vital role in increasing vehicle visibility, alerting motorists and pedestrians to emergency activity and enhancing safety at incident scenes, according to the report. Professional Police Supply of Livermore submitted the lowest responsive bid at $66,194 annually. Other bidders included firms from Perris, Elk Grove, Ontario, Berkeley and Pasadena. City staff recommended awarding the contract to Professional Police Supply, noting the city has conducted business with the company since 2015 and has paid more than $1.13 million for products and services during that period. Funding for the contract will come from the Fleet Maintenance Fund. Officials said the agreement will have no impact on the General Fund.
- Contract to Modernize Elevators at Police Headquarters A $533,192 contract to modernize two aging elevators at Pasadena Police Department headquarters, a project city officials say is needed to improve reliability, safety and code compliance at the downtown facility. The contract will authorize the city manager to enter into an agreement with SmartRise Elevator Service Inc. of Santa Fe Springs for the Police Department Elevators Modernization Project. The contract includes a base bid of $444,292 and an $88,900 contingency to address unforeseen construction conditions. The project stems from a comprehensive facilities assessment completed in 2018 that identified the hydraulic elevator systems at police headquarters, located at 207 N. Garfield Ave., as requiring modernization due to aging equipment, deteriorating components and increasing maintenance demands. According to a staff report, the project will modernize both hydraulic elevators, replace outdated mechanical, electrical and control system components, complete code-required upgrades and integrate the elevators with existing building life-safety systems. Because the police headquarters will remain occupied during construction, the project has been designed to keep one elevator operational at all times. Officials noted SmartRise previously completed elevator modernization projects in six city-owned parking garages under contracts totaling more than $1.8 million. Construction is expected to be completed in summer 2027. Including construction administration and inspection costs, the project’s total fiscal impact is estimated at $599,842. The work will be funded through the city’s Building Preventative Maintenance Fund and will not affect the General Fund.
- Extension of Security Contract for Remaining Caltrans Properties The action will amend the city’s contract with American Global Security Inc. by adding $120,000 to the agreement and extending its term through Dec. 31, 2026. If approved, the contract’s total value would increase to $577,500. The security services contract was originally approved by the City Council in October 2023 for up to $237,500. The agreement provided security patrols for 17 residential properties acquired by Pasadena from the California Department of Transportation (Caltrans) under Senate Bill 959, which authorized the transfer of surplus properties along the abandoned 710 Freeway corridor. According to a staff report, the original contract provided around-the-clock patrol coverage with a single security guard assigned to all 17 properties. Following a security incident, the city and American Global Security agreed to add a second guard and divide patrol responsibilities geographically across the portfolio. As the city sold properties, security needs decreased and the contract was adjusted accordingly. City officials said 13 of the 17 properties have now been sold, leaving four properties still under city ownership. Housing Department staff expect the remaining properties to be sold by the end of 2026 and recommend extending the contract to maintain security coverage during the city’s remaining ownership period. The proposed amendment would also allow the city to reduce patrol services as additional property sales are completed. American Global Security, a Chatsworth-based small business, has nearly 25 years of experience providing security services to municipalities and housing agencies. The company also serves as the primary security contractor for the City of Glendale. The contract amendment would be funded through the Housing Department’s Other Housing Fund and would not affect the city’s General Fund.
- Pasadena Seeks Up to $2.7 Million in Outside Plan Review Contracts Amid Record Development Activity Facing record demand for building and fire plan reviews and ongoing staffing challenges, the City Council approved contracts worth up to $2.7 million with three consulting firms to help process construction plans and maintain review timelines. The action will authorize one-year contracts with J Lee Engineering Inc., Jason Addison Smith Consulting Services Inc., doing business as JAS Pacific, and True North Compliance Services Inc. Each contract would be valued at up to $450,000, with an option to extend for an additional year and an additional $450,000 per firm, bringing the potential total to $900,000 for each consultant. According to a staff report, demand for plan review services is at an all-time high, driven by increased development activity and rising project valuations. The Planning and Community Development Department and Fire Department use outside consultants to supplement city staff during periods of heavy workload and to maintain turnaround times for construction plan reviews. City officials said the contracts are needed as the Building and Safety Division continues to face recruitment and retention difficulties. One Plans Examiner II position has remained vacant for more than two years, despite efforts to strengthen hiring and retention through salary increases, new career advancement opportunities, expanded training and the creation of a supervisory plans examiner position. Under an agreement with the Pasadena Management Union, the city will conduct an operational and staffing analysis before the contracts expire to evaluate long-term staffing needs. The contracts would be funded through building and fire plan review fees and would not affect the General Fund.
- $300,000 Grant for Youth Summer Internship Program The action will authorize the city manager to enter into a contract with International Trade Education Programs, doing business as EXP, and amend the City Manager’s Fiscal Year 2026 operating budget to recognize and appropriate the funding. According to a staff report, the city was notified on May 27 that it had been awarded the $300,000 contract to implement the EXP Summer Internship Program. The initiative will provide participants with up to 80 hours of paid work experience at local businesses and organizations between June and December 2026. City officials said the program is designed to help young people develop technical skills, gain exposure to potential career paths and strengthen workforce readiness through hands-on job experience. The Foothill Workforce Development Board will administer the program using existing staff. Responsibilities will include serving as the employer of record for participants, handling onboarding and payroll, coordinating internship placements and completing required reporting. The program also seeks to strengthen partnerships between local employers, educational institutions and workforce development organizations. Staff said employer engagement will be a key component, with businesses and community organizations providing work-based learning opportunities for participants. According to the report, most of the funding will be directed toward participant wages and direct services, with administrative costs kept to a minimum. City officials said the internship program supports City Council priorities related to workforce development, youth engagement and economic opportunity while helping create a pipeline of skilled workers for local industries. The grant funding will be deposited into the Workforce Innovation Opportunity Fund and will have no impact on the city’s General Fund.
- City Investment Portfolio Tops $1 Billion Despite Quarterly Decline The city’s investment portfolio totaled more than $1.15 billion at the end of the first quarter of 2026, despite a decline of approximately $20.5 million from the previous quarter, according to a quarterly investment report reviewed by the City Council on Monday. The report shows total funds under management stood at $1.153 billion as of March 31, down from $1.174 billion on Dec. 31, 2025. The decrease was largely driven by a $15.7 million reduction in the city’s pooled investment portfolio and a $7.1 million withdrawal from the city’s PARS Section 115 Trust account to make an additional payment toward its CalPERS unfunded pension liability. The city’s pooled investment portfolio, valued at $831.8 million, was affected by payroll expenses, vendor payments, debt service obligations and net water and power expenditures. Those outflows were partially offset by property tax revenue, sales tax receipts, investment earnings and $12.7 million in proceeds from the sale of former Caltrans properties acquired through the abandoned 710 Freeway corridor program. Finance officials reported that the portfolio remains in compliance with the city’s investment policy and state law. The city maintained approximately $167.9 million in short-term liquid investments as of March 31, well above its target liquidity level. The report also noted that the city’s investment earnings have benefited from higher interest rates over the past two years. The pooled portfolio’s earnings rate reached 4.01% in April 2026, although officials said returns could moderate depending on future Federal Reserve actions. According to the report, Pasadena’s General Fund held an estimated investment balance of $83.6 million at the end of the quarter, representing about 7.25% of the city’s pooled portfolio.
- Capital Improvement Budget Changes, New Arroyo Study Project A series of amendments to the Fiscal Year 2027 Capital Improvement Program budget, including funding transfers for street improvements, pedestrian safety projects and Olympic-related infrastructure, as well as the addition of a new study focused on the Lower Arroyo Seco. According to a Department of Public Works report, the proposed changes would increase the city’s FY 2027 Capital Improvement Program budget by $500,000 while resulting in no net change to the General Fund. Among the largest adjustments is a transfer of approximately $2.5 million to the Annual Citywide Street Resurfacing and Americans with Disabilities Act (ADA) Improvement Program. The funds would come from completed or inactive projects and private capital contributions tied to development-related street repaving requirements. The transfer would increase the project’s total FY 2027 appropriation to approximately $11.1 million. The council will also consider transferring $7.17 million in Metro grant funding to the Pasadena Rose Bowl Multimodal Olympic Route project. City officials said the project will improve walking and first-mile/last-mile connections between the Metro A Line Memorial Park Station and the Rose Bowl ahead of the 2028 Olympic Games. Two pedestrian safety projects would receive funding through separate transfers of $300,000 each. The projects would install pedestrian hybrid beacons, commonly known as HAWK signals, at Lake Avenue and Elizabeth Street and at Lincoln Avenue and Toolen Place. In addition, officials are recommending creation of the Lower Arroyo Park Planning and Feasibility Study, a new $500,000 project funded through Measure A grant funds. The study will evaluate opportunities for habitat restoration, stormwater management, water quality improvements, trail accessibility and public access within approximately 37 acres of city-owned open space between the Colorado Street Bridge and La Loma Bridge. City staff said the study is intended to identify long-term improvements that support watershed health, climate resilience and recreational access while helping guide future investment decisions in the Lower Arroyo corridor.
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