Council Green Lights Contract For Battery Energy Storage, 2024 Budget Amendment

Pasadena City Council approves numerous items, including $55 million energy contract and budget amendments Consent calendar streamlines meeting procedures by grouping routine, non-controversial items for approval in a single vote

The Pasadena City Council approved a variety of items during the consent calendar portion of its meeting on Monday, including a $55.3 million contract with Glenarm BESS, LLC for a battery energy storage system and amendments to the fiscal year 2024 operating budget totaling $2.5 million.

A consent calendar is a tool used by government bodies to efficiently handle routine, non-controversial items by grouping them into a single agenda item. This allows for approval of multiple items with one vote.

The approved $55.3 million contract with Glenarm BESS, LLC is for the design, construction, ownership, and operation of a 25-megawatt, 4-hour battery energy storage system. The project, part of Pasadena’s plan to source 100% of its electricity from carbon-free sources by 2030, will be connected to the nearby Glenarm Receiving Station.

According to a City staff report, the contract sets a service rate of $12.18 per kilowatt-month over a 15-year term. The city has the option to purchase the facility for an estimated $47.1 million when it begins service around January 1, 2027.

“This ambitious target, which has been incorporated into Pasadena Water and Power’s recently adopted 2023 Integrated Resource Plan (“IRP”), calls for a complete shift to zero-carbon resources 15 years before the 2045 target year established by SB 100,’ according to the report.

The Council also amended the fiscal year 2024 operating budget by $2.5 million to account for unanticipated changes, impacting various areas such as the light and power fund transfer, rental housing assistance, outside legal services, emergency shelter for the homeless, and funding for elections and charter reform efforts.

These changes do not affect the budget adopted last week for the 2025 fiscal year, as stated in a staff report. 

“Throughout the fiscal year, budgetary adjustments are necessary to account for unanticipated changes to the adopted budget. These revenue and appropriation amendments are presented to the City Council for consideration,” according to a City staff report.

The changes do not impact the budget adopted by the City Council last week for the 2025 fiscal year.

Other approved items on the consent calendar Monday included:

• Light and Power Fund Transfer—The Water and Power Department recommended transferring $5 million from the unappropriated fund balance in the Power Fund (401) to the General Fund (101). City Council approved the FY 2024 Light and Power Fund transfer in the amount of $13 million, anticipating an additional $5 million in FY 2025.Based on the audited FY 2023 financial statements, the Power Fund has sufficient funds to transfer the $5 million in FY 2024. 

•  Rental Housing Assistance Budget Adjustment – The Housing Department recommended recognizing revenue and appropriating $3,295,554 in the Rental Housing Assistance Programs Fund (220) to account for additional Housing Assistance Payments (MAP) for the new Heritage Square project, HOPE center projects and CARES mainstream vouchers and to correct an administrative oversight for the Emergency Housing Vouchers (EHV), which were inadvertently under-budgeted. 

• Outside Legal Services – The City Attorney/City Prosecutor Department recommended appropriating $2,280,000 from the unappropriated fund balance in the General Fund (101) for outside legal services. The Department currently has $2.2 million budgeted for outside legal services; however, this will not be sufficient given the number and range of legal matters required to be handled. For example, the Civil Division has conducted four trials during this fiscal year (three conducted by outside counsel), handled a high number of ongoing and time-consuming employment litigation matters, and has had protracted discovery and law and motion in several litigation matters as well. 

• . Encampment Resolution Funding (ERF) Transfer – The housing Department recommended transferring $667,706 in ERF grant funds from the Other Housing Fund (238) to the Public Health Fund (203) to provide emergency shelter and housing navigation services to people experiencing unsheltered homelessness, who are living in prioritized encampments located along the 210 freeway. On October 2, 2023, the City Council approved receipt of the ERF grant funds, of which 50% is required to be expended by June 30, 2024. The grantor, the State of California Business, Consumer Services & Housing Agency, advised that the recommended transfer is an allowable expenditure thereby, fulfilling the grant’s expenditure requirement. 

• Election Administration and Charter Study – The City Clerk’s Office recommended appropriating $175,000 from the unappropriated fund balance in the General Fund (101) for Election Administration and Charter Study Task Force support. The Department currently has $550,000 budgeted for election administration and Charter Study. However, this amount is insufficient to cover the anticipated costs to be invoiced by the Los Angeles RegistrarRecorder/County Clerk’s Office for election administration services for the Office of Mayor and City Council Districts 1,2,3, 4, and 6, as well as, for Charter Amendment Measures R, S, and T. 6. Turi: Removal Rebate – The Police Department recommends recognizing revenue and appropriating $54,452 for a rebate received from the SoCal Water Smart rebate program offered by the Metropolitan Water District of Southern California for turf removal at the heliport. 

Here are the other items on Monday’s consent calendar:

• A $2,337,600 contract with Southwest Pipeline & Trenchless Corp. for the FY 24-25 Sewer Relining and Point Repairs Project. The project consists of 25,000 linear feet of cleaning and relining of existing sanitary sewer pipes at prioritized locations city-wide. Additionally, this contract includes the rehabilitation of 150 sewer manholes; repair of damaged pipes and installation of pipe repair sectionals; reconstruction of manhole channels; trimming of protruding laterals and other obstructions; reopening of existing lateral connections and installation of service lateral connection seals known as Top Hats; manhole cover replacements; pre and post-lining video inspections for future relining locations; and miscellaneous appurtenant work that may come up during the course of the sewer relining operation.

• A mitigated negative declaration for the San Rafael Treatment Wetlands and Storm Water Capture Project and approval of project design plans.  he Arroyo Seco Water Reuse project is a joint project with the City of South Pasadena. The project consists of two locations in the Arroyo, one in the City of Pasadena and the other in the City of South Pasadena. The Pasadena site is located immediately south of the San Rafael Bridge and the South Pasadena site is adjacent to their Arroyo Park. The project itself originates from the November 2018 passage of Proposition 68, the State of California’s Parks and Water Bond Act of 2018. Language in that bond measure set aside a total of $3.5 million for the cities of Pasadena and South Pasadena for Arroyo Seco Water Reuse and Stream Restoration. Subsequently, Pasadena’s City Council approved a Resolution for grant application and a Memorandum of Understanding (MOD) between the two cities in October 2020, where the City of Pasadena was named as the lead agency.

• A $3,901,453 contract with All American Asphalt for the Annual Citywide Street Resurfacing and ADA Improvement Program, FY 2023/2024 Project. This contract consists of resurfacing approximately 10 centerline miles of asphalt pavement, including two miles of asphalt overlay and/or pavement reconstruction, and eight miles of slurry seal pavement rehabilitation. In addition to pavement resurfacing, the scope of work for each street segment may include the following improvements, as necessary: removal and reconstruction of damaged concrete curb, gutter, sidewalk, and curb ramps; adjustment of existing utility manholes; replacement of traffic signal loop detectors; installation of raised pavement markers; and miscellaneous appurtenant work.

• Adopt a Resolution Establishing Lead Detention Officer Classification and Establishing the Salary for the Classification. The Police Department requested the development of one new classification: Lead Detention Officer The Lead Detention Officer classification is being created to provide lead-level coordination and training of Detention Officers and provide leadership in the absence of a supervisor on an assigned shift. Incumbents perform the full range of Detention Officer duties as well as provide advanced administrative support to supervisors and will provide more opportunities for career advancement. As a result of the review above, Human Resources recommends establishing one new classification and salary. The recommended salary control rate for the classification was determined following an analysis of comparable classifications in the labor market and/or an analysis of internal alignment with comparable classifications within the City. All recommended changes are intended to support the City’s ability to recruit and retain skilled personnel in a highly competitive labor market. This recommendation also provides a standard differential and alignment between the levels in the series. This action does not require any additional FTEs.

• Adopt a Resolution Establishing Recreation Services Specialist II Classification and Establishing The Salary for the Classification. The Parks, Recreation, and Community Services Department requested the development of one new classification: Recreation Services Specialist II The Recreation Services Specialist II classification is being created as the journey level in the class series. Recreation Services Specialists assist in the planning and delivery of recreation programs and activities to the community at recreation sites and centers and neighborhood parks. Additionally, Recreation Services Specialists provide assistance in the management of and logistical support to recreation facilities and sites. The Recreation Services Specialist II will work more independently, exercising judgment and initiative in decision-making.

• Approve a name change of the contracting party for the purchase of one replacement Pasadena Dial-A-Ride zero-emission bus from Endera Motors, LLC to CoachWest Luxury and Performance Motorcars, Inc. On April 8, 2024, the City Council approved the purchase of one replacement Pasadena Dial-A-Ride zero-emission bus from Endera Motors, LLC. The proposed action to purchase one replacement Pasadena Dial-A-Ride vehicle is consistent with the Council adopted Zero-Emission Bus Rollout Plan and aligns with the goals of the Strategic Plan. Specifically, it contributes to the goals of improving, maintaining, and enhancing public facilities and infrastructure, increasing conservation and sustainability, and improving mobility and accessibility throughout the city. This replacement vehicle will enhance Pasadena Dial-A-Ride services by minimizing service interruptions caused by the deteriorating condition of the four remaining aging Pasadena Dial-A-Ride vehicles in the fleet. City Council approved the contract award to Endera Motors, LLC. During the execution of the contract, Endera Motors, LLC advised Department of Transportation staff that although Endera Motors, LLC is the manufacturer, the CalACT purchasing contract #20-01 ZEB is with CoachWest Luxury and Performance Motorcars, Inc. Hence, this correction is needed to change the name of the contracting party.

• Approval of Measure M multi-year subregional program FY27 and FY28 list of proposed projects. The Los Angeles County Traffic Improvement Plan, known as Measure M, was approved by Los Angeles County voters on November 8, 2016. With the approval of Measure M, projects and programs included in the Measure M Ordinance and Expenditure Plan also were approved. Subsequently, the Measure M Guidelines were developed and adopted by the Los Angeles County Metropolitan Transportation Authority (Metro) Board of Directors in June of 2017, followed by the Measure M Procedures adopted by the Metro Board in February of 2018, which defines the eligible project types, administrative procedures and guidelines. The Measure M Guidelines direct each subregion/Council of Government (COG) to draft a five-year MSP for the expenditure of their respective Measure M funds. The guidelines required updating the five-year MSP annually starting at year six as the funds for each year became available. MSP funds are intended to provide subregions flexibility in using the funds within the framework of Measure M Guidelines. Before MSP funds are allocated to communities, the MSP must be approved by Metro. The City of Pasadena’s initial five-year MSP and subsequent MSPs project lists are coordinated as a member agency of the AVCJPA.

• Direction for the City Attorney to prepare and return with an ordinance within 60 days that further updates and/or clarifies the Purchasing Ordinance as set forth in this Agenda Report, which, in relevant part, supersedes the City Council’s direction on April 8. Pasadena’s Charter, Article X, establishes regulations regarding contracts, purchases, and claims. A Charter amendment was approved by the voters on March 5, 2024, amending Section 1001, which requires the City Council to establish contracting authority by ordinance. On April 8, 2024, the City Council directed the City Attorney to prepare and return with an ordinance within 60 days to establish the procurement limits and make additional updates and clarifications to the Purchasing Ordinance. That April 8, 2024, report is attached for reference. Subsequent to Council’s direction, three additional areas of the Purchasing Ordinance have been identified as needing to be updated. Two of these will be a part of the ordinance brought forward at the next regularly scheduled City Council meeting, and the third can be brought forward, separately, at a future date.

• Direct the City Attorney to draft an ordinance within 60 days amending Title 10 of the Pasadena Municipal Code to provide for the following: a. Language to incorporate current permit issuance and enforcement practices; b. Language to clarify requirements and meaning, and correct grammar; and c. Remove obsolete provisions that are no longer relevant. Over time, changes within the administrative organizational structure of the City, and changes in statutory and decisional law render certain provisions and language of the Pasadena Municipal Code (PMC) obsolete, outdated, and/or unclear necessitating changes. As such, Title 10 of the PMC, which contains sections related to parking regulation and permit issuance requires updating. The proposed amendments will ensure that the language in Title 10 of the PMC is current and consistent by removing outdated references and practices.

• A $47.100,000 contract for professional or unique services, with CalWind Resources, Incorporated (“CalWind”) for the purchase of renewable energy and capacity that includes daily delivery from a wind turbine facility named Wind Resource II Project (“Project”) of a maximum of 20 megawatts (“MW”) of wind energy during a 10-year contract term beginning May 1. On January 30, 2023, the City Council approved City of Pasadena (“City”) Resolution 9977 which sets a goal to source 100% of Pasadena’s electricity from carbon-free sources by the end of 2030. Resolution 9977 (“Resolution”) has been incorporated in Pasadena Water and Power’s (“PWP”) recently adopted 2023 Integrated Resources Plan (“IRP”), which requires that the City continue a path to zero-carbon resources, 15 years before the 2045 target year established by Senate Bill (“SB”) 100. California’s Renewable Portfolio Standard (“RPS”) Program requires all-electric load serving entities to procure 60% of its electricity portfolio from eligible renewable energy resources by 2030. Pasadena’s goal greatly exceeds the requirements of both SB 100 and the RPS Program in resource qualifications and timeline while focusing on resources that support the best value of resources while meeting Pasadena’s unique energy needs.