Pasadena could spend up to $7.5 million over the next three years repairing streets, sidewalks and other surfaces damaged during water infrastructure work under a contract scheduled to go before the City Council on Monday.
The City Council will consider awarding Paveco Construction Inc. an initial $2.5 million, one-year contract to provide labor, equipment and materials for utility and miscellaneous street repairs for Pasadena Water and Power (PWP). The agreement includes two optional one-year extensions worth $2.5 million each, bringing the potential total to $7.5 million.
PWP routinely replaces aging water mains and performs repairs and modifications to the city’s water distribution system. City crews install water mains, services, fire hydrants and other facilities, requiring streets and other surfaces to be excavated.
The proposed contract would cover restoration work after those projects, including asphalt and concrete pavement as well as repairs or replacement of sidewalks, driveways, curbs and gutters.
Paveco submitted the lowest of two bids received by the city. Its bid totaled approximately $1.7 million, compared with about $3 million from A & Y Asphalt Contractors Inc. No local companies submitted bids.
Although Paveco’s bid was based on estimated quantities derived from previous restoration work, city officials expect the volume of work to increase because of planned Capital Improvement Program projects, including water main replacements.
Officials said the larger $7.5 million contract ceiling is intended to provide enough funding to handle the anticipated restoration work during the three-year period.
Paveco holds the required California contractor’s license and has received two Pasadena contracts since 2020, including one with PWP. Neither contract is currently active.
The work was bid as a prevailing-wage project, meaning employees must be paid prevailing wage rates established by the California Department of Industrial Relations.
Funding would come from the Water Capital Fund and would be spread across several capital projects covering distribution mains, meters and services and customer-driven work.
The contract would provide up to $2.5 million annually in fiscal years 2027, 2028 and 2029 if both extensions are exercised.
City officials said the contract would have no impact on the General Fund.
Here are the remaining items on Monday’s consent calendar:
Pasadena Could Receive $2 Million Federal Grant for Smart Water Meters
The city could receive up to $2 million in federal funding for a new advanced water-metering system that city officials say could save an estimated 4,300 acre-feet of water annually through faster leak detection and improved conservation.
The City Council on Monday will consider authorizing the city to accept the grant from the U.S. Bureau of Reclamation for Pasadena Water and Power’s Advanced Metering Infrastructure project.
PWP was awarded the funding June 6 through the Bureau of Reclamation’s Water and Energy Efficiency Grant program, part of the federal WaterSMART initiative designed to improve water supply sustainability and invest in existing infrastructure.
The project would install hardware, software and communications networks intended to modernize the way PWP monitors water use and manages its system.
According to a city staff report, the technology would improve meter-reading and billing accuracy, allow earlier detection of meter failures, improve asset management and reduce operational support costs.
The system also would provide real-time detection of water leaks, allowing customers to receive immediate notifications. City officials said quicker detection could reduce water waste and help customers avoid higher bills caused by undetected leaks.
Based on current water losses, PWP estimates faster leak detection and additional conservation could save approximately 4,300 acre-feet of water annually.
Officials also project the improvements could produce energy savings of approximately 7,000 megawatt-hours annually and reduce greenhouse gas emissions by about 4,900 metric tons of carbon dioxide per year.
The project is part of Pasadena’s long-term effort to improve water supply reliability, increase conservation and reduce energy use. It also supports the city’s 2020 Water System and Resources Plan, which calls for new conservation programs to help meet future regulations.
The federal grant would provide up to $2 million over three fiscal years. Under the grant requirements, Pasadena must provide a cost share of at least 50%.
The city’s share would come from funding already budgeted for the Advanced Metering Infrastructure project in PWP’s Capital Improvement Program.
City officials said accepting the federal money would not affect the General Fund.
If approved, the resolution would authorize the city manager or a designee to execute agreements with the Bureau of Reclamation and administer the grant and related documents.
City Moves Toward Replacing Eaton Fire-Damaged Reservoir
The city could take another step toward replacing a reservoir severely damaged in the 2025 Eaton Fire when the City Council considers a $618,782 engineering contract Monday for the Don Benito Reservoir Replacement Project.
The reservoir, which serves most of the Upper Hastings Ranch neighborhood, consisted of two steel tanks capable of holding approximately 700,000 gallons of water each before they were severely damaged in the fire.
Pasadena Water and Power activated an interconnection with a neighboring water agency to continue delivering water to affected areas following the damage.
After assessing the tanks and evaluating alternatives, PWP determined that construction of a new reservoir was necessary to improve the reliability and resilience of the city’s water system.
The City Council will consider awarding Cannon Corporation a contract to provide final design, bid assistance and engineering services during construction. The proposed three-year agreement includes a $538,071 base contract and $80,711 contingency for possible changes.
PWP began conceptual design work on the replacement in September 2025. That report, completed in March, established the technical framework for the project’s final design.
The city sought proposals for engineering services in April. The solicitation generated notifications to 681 vendors, with 62 downloading documents and four firms submitting proposals.
Cannon, based in San Luis Obispo, received the highest evaluation score at 94 points. Lee + Ro Inc. scored 86, TKE Engineering Inc. received 81 and WHB Engineers received 77.
Evaluators considered qualifications, relevant experience, schedule and cost. Because the procurement is subject to federal guidelines, Pasadena could not give preference to local companies.
According to city officials, Cannon has worked on reservoir upgrade and improvement projects for the Santa Clarita Valley Water Agency, Los Angeles County and the city of Whittier. The company has not previously held a contract with Pasadena.
The city anticipates spending approximately $400,000 on the engineering work during fiscal year 2027, with the remaining costs extending through fiscal 2030.
Funding will come from the Don Benito Reservoir Replacement capital improvement budget. City officials anticipate that some costs could be reimbursed through insurance or federal sources, including the Federal Emergency Management Agency.
The contract would have no impact on Pasadena’s General Fund.
Pasadena Could Spend Nearly $880,000 to Continue Budgeting Software
Pasadena could spend nearly $880,000 over the next three years to continue using the software that helps city officials prepare budgets, forecast personnel costs and provide financial information to the public.
The City Council on Monday will consider authorizing a three-year contract with OpenGov Inc. for continued use of its Budgeting & Planning software through July 31, 2029. The contract would cost up to $879,918.
The city has used OpenGov’s budgeting software since 2023, when the City Council approved a contract covering operating budget preparation, personnel budgeting and forecasting, financial reporting, dashboard analytics and development of the city’s online budget book.
According to a city staff report, the cloud-based system has become embedded in Pasadena’s annual budget process and has replaced labor-intensive spreadsheets with a centralized system.
The platform includes tools for operating budgets, workforce planning and the city’s online budget book, along with financial reporting and public transparency features. Newer features include task tracking, notifications, performance management and dashboards for reporting key performance indicators.
City officials are recommending that the contract be awarded without a new competitive selection process, arguing that continuing with OpenGov would preserve the city’s existing configurations and institutional knowledge while avoiding the cost and disruption of changing systems.
Pasadena currently has two contracts with OpenGov, one for budgeting and planning and another for procurement. Officials considered combining them into one master agreement but said timing constraints required the budgeting contract to be renewed separately.
The previous budgeting contract expired July 31.
OpenGov was acquired by Cox Enterprises in February 2024, prompting negotiations over contract terms that delayed the new agreement, according to the staff report.
The proposed contract includes a 5% annual cost increase. Pasadena would spend approximately $279,117 during fiscal year 2027, $293,073 in fiscal 2028 and $307,727 in fiscal 2029.
The first year’s cost would be paid from existing General Fund appropriations in the Finance Department’s adopted fiscal 2027 operating budget. Future costs would be included in annual General Fund budgets.
City officials said continuing the system would allow employees to spend more time on budget planning and evaluating city services instead of manual administrative work.
City Seeks One-Year Bank of America Extension as New Banking Contract Is Reviewed
The city could retroactively extend its banking contract with Bank of America for another year as city officials evaluate proposals for a new financial institution to handle accounts through which an estimated $2.5 billion flows annually.
The City Council on Monday will consider extending the contract through May 16, 2027, within its existing $659,260 spending limit. The previous agreement expired May 16.
Bank of America has provided banking services to Pasadena since the 1990s, handling general accounts, deposits, online reporting, checks, wire transfers, electronic payments, purchasing cards and other financial services.
According to a city staff report, approximately $2.5 billion moves through city bank accounts each year, including revenues, cash inflows and payments made through wires, checks and electronic transactions.
The city began seeking a new banking services provider after delays in developing a request for proposals because of the complexity of the services involved.
The solicitation required reviews by risk management, information technology, cybersecurity and several Finance Department functions to ensure prospective banks could meet the city’s operational, security and regulatory requirements.
The city issued the request for proposals June 22, and the Treasury Division received more than 50 inquiries from financial institutions. The deadline for proposals was July 30.
Finance officials said the one-year extension would provide time to evaluate the proposals, obtain City Council approval and complete a new contract.
If the city selects another bank, the additional time would also allow the city to transition accounts and services without disrupting daily operations, including payment processing at public counters.
The extension would not increase the existing contract’s $659,260 spending limit.
City officials said Pasadena has spent no money against the banking contract because the city maintains consolidated daily bank balances that generate earnings credits sufficient to offset its banking fees.
The original five-year agreement cost $470,900 and included two optional one-year extensions of $94,180 each.
Finance officials said extending the agreement would maintain essential banking services while the competitive selection process is completed.
The proposed extension is considered a no-cost action because sufficient funding remains within the existing contract authorization. Banking expenses, if incurred, are allocated among city funds using the services and have already been included in departments’ fiscal year 2027 operating budgets.
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