City Council Will Vote On Acquiring 17 Properties From Caltrans

As part of Monday’s consent calendar, the Pasadena City Council will vote on a recommendation that would allow the City to purchase 17 properties from Caltrans located in the State Route 710 right-of-way. The total purchase price for the properties is set at $976,140, plus closing costs.

The properties were acquired by Caltrans for the now canceled 710 freeway extension which would have intended to connect the SR-710 freeway to the 210 Freeway.

In the 1950s, 1960s, and 1970s, Caltrans acquired 460 properties in Pasadena, South Pasadena, and El Sereno.

The City Manager will be authorized to finalize the purchase agreements and related documents.

The purchase is enabled by Senate Bill 959 (Portantino, 2022), which amended the Roberti Act to give cities like Pasadena the first opportunity to buy surplus properties along the SR-710 corridor. The bill allows the city to purchase these properties at their original acquisition price, with the stipulation that proceeds from future sales are used to fund affordable housing projects.

The agreements stipulate several key terms:

The purchase price for each property is set at Caltrans’ original acquisition price. The City has 60 days to execute the agreements, followed by a 60-day due diligence period and a 120-day escrow period, with possible extensions. Properties will be sold in “as-is” condition, with the City required to notify Caltrans of any issues before terminating the agreement. The City must resell the properties within two years or use them for affordable housing if not sold.

The City must use proceeds from resales to finance at least three affordable housing units for each property sold. Housing units funded must be located in high-resource areas, and any surplus funds after completing housing projects can be used for additional affordable housing initiatives.

The City plans to market most of the properties through three appointed brokers, while four smaller properties might be designated for affordable homeownership opportunities. These properties, many in poor condition, will be sold with conditions to ensure they are maintained and brought up to code.

This acquisition supports Pasadena’s General Plan – Housing Element and aligns with the City Council’s Strategic Plan to improve quality of life and bolster the local economy.

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

• An $804,939 pool maintenance contract with Wet Views for two city pools. The contract covers maintenance services at the Honorable John J. Kennedy Pool at Robinson Park and Villa Parke. The Parks, Recreation, and Community Services Department has been operating the city pools with certified staff since the previous contractor, Caliber Pools, went out of business in December 2023. After the initial bidding process in December 2023 failed due to specification issues and was rejected in March 2024, the revised bidding process led to the contract award. The approved contract includes maintenance visits to the John J. Kennedy Pool three times a week year-round and the Villa Parke Pool twice a week from September through May, with an increase to three times a week from June through August. The contract also covers on-call repair services.
• Water meter contracts with Zemer USA, Aqua Metric Sales Company and Ferguson Waterworks totaling $2.9 million. The Pasadena Water and Power Department manages approximately 38,000 water service connections, each requiring a water meter. The existing meters, which utilize Automatic Meter Reading (AMR) technology, generally last 15 to 20 years. To ensure accurate billing, the department replaces about 1,500 meters annually. The City Manager will oversee the contracts, which aim to support the ongoing replacement of aging water meters and ensure reliable service for Pasadena residents.
• Quarterly Investment Report for Quarter Ending June 30. The City has released its Quarterly Investment Report for the period ending June 30, 2024. The report, which is provided for informational purposes, details the city’s investments and financial management. The quarterly report, while optional under the state guidelines, includes comprehensive information required by the code. This includes a summary of all securities, investments, and funds held by the city. Key elements of the report cover:

1. Investment Details: The report lists the types of investments, issuers’ names, maturity dates, par values, and the dollar amounts invested in each security.
2. Weighted Average Maturity: It provides the weighted average maturity of the investments within the city’s treasury.
3. Management Overview: The report details any funds, investments, or programs, including loans, managed by contracted parties.
4. Market Value and Valuation Source: It includes the market value of securities as of the report date and the source of the valuation.
5. Compliance Statement: The report outlines how the portfolio complies with the city’s Statement of Investment Policy.

The report ensures transparency and accountability in investment practices. Although not mandated, this practice is encouraged to maintain public trust and ensure fiscal responsibility. The report is a standard practice intended to keep the legislative body informed of the city’s financial status and its ability to meet upcoming expenditure requirements.

• Budget Amendments for Fire and Public Health Departments. The amendment to the Fiscal Year 2025 operating budgets for the Fire Department and the Public Health Department would increase both departments’ budgets by a total of $955,080. The amendment is based on new grant funds and necessary budget adjustments. The recommended changes include, but are not limited to:

Urban Area Security Initiative (UASI) Grant Funds:

Fire Department: Receives $328,500 for urban search and rescue (US&R) equipment, training, and catastrophic planning.

Public Health Department: Awarded $60,000 for a Continuity of Operations Plan workshop and Powered Air Purifying Respirators (PAPRs).

Assistance to Firefighters (AFG) Grant Funds:

The Fire Department is allocated $319,380 to support cancer screenings, mental health and wellness checkups, Critical Incident Stress Management (CISM) training, and Live Fire Training. The total award of $351,318 includes federal and non-federal contributions.

Regional Urban Search and Rescue (US&R) Training Reimbursement:

Pasadena Fire Department: To receive $247,200 from the California Governor’s Office of Emergency Services (Cal OES) for training reimbursements for Regional Task Force Four (RTF-4), covering costs related to US&R training and exercises.

The budget amendments follow Government Code Section 53646, which allows for such adjustments to address unforeseen changes and ensure compliance with state regulations. The City Council found that these adjustments do not constitute a “project” under the California Environmental Quality Act (CEQA). The new funding will support critical improvements in emergency response capabilities and public health preparedness, helping to maintain and enhance the city’s safety and service standards.