Pasadena — 2025-02-24

A. CITY COUNCIL CONFERENCE WITH LEGAL COUNSEL regarding pending litigation pursuant to\nGovernment Code Section 54956.9(d)(1)\nName of Case: 615 S Catalina Ave LLC v. City of Pasadena, et al.\nLos Angeles County Superior Court Case No. 24STCP02861

B. CITY COUNCIL CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to Government\nCode Section 54956.8\nProperties: 649 N. Fair Oaks Ave., Suite 202, Pasadena, CA; 1335 N. Lake Ave., Pasadena, CA; 710 N.\nFair Oaks Ave., Pasadena, CA; 199 S. Los Robles Ave., Pasadena, CA\nUnder negotiation: Price and terms of payment\nAgency negotiator: Miguel Márquez\nNegotiating parties: Danny Bakewell, Jr. (649 N. Fair Oaks and 1335 N. Lake), Sierra Atilano (710 N.\nFair Oaks), Natalie Bazarevitsch (199 S. Los Robles)

1. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH DELL MARKETING LP FOR\nMICROSOFT SOFTWARE LICENSES AND SERVICES IN AN AMOUNT NOT-TO-EXCEED $7,650,000 FOR A\nPERIOD OF THREE YEARS (DoIT)\nRecommendation: It is recommended that the City Council:\n(1) Find that the recommended actions in the agenda report are exempt from the California\nEnvironmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15061(b)(3), the “Common\nSense” exemption that\nCEQA only applies to projects that may have an effect on the environment;\n(2) Approve a renewal of an Enterprise License Agreement (ELA) with Microsoft for a period of three\nyears from April 1, 2025 to March 31, 2028;\n(3) Authorize the City Manager to enter into a contract without competitive bidding pursuant to City\nCharter Section 1002(H) contracts with other governmental entities or their contractors, with Dell Marketing LP for\nthe licensing\nof Microsoft software and services under the Microsoft ELA in an amount not-to-exceed $7,650,000 for a\nperiod of three years from April 1, 2025 to March 31, 2028 as set forth in the body of the agenda report; and\n(4) Grant the recommended contract an exemption from the Competitive Selection process pursuant to\nPasadena Municipal Code Section 4.08.049(B) contracts for which the City’s best interests are served.\nTPA

2. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH THE CALIFORNIA HIGHWAY\nPATROL FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES FOR NEW YEAR’S ACTIVITIES AND\nMAJOR EVENTS, FOR A PERIOD OF FIVE YEARS (2025-2030) IN AN AMOUNT NOT-TO-EXCEED\n$1,250,000 (Police Department)\nRecommendation: It is recommended that the City Council:\n(1) Find the proposed action in the agenda report is exempt from the California Environmental Quality\nAct (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption that CEQA\nonly applies\nto projects that may have an effect on the environment;\n(2) Authorize the City Manager to enter into a contract with the California Highway Patrol for\nsupplemental law enforcement services for New Year’s activities and major events, for a period of five years\n(2025-2030) in an amount\nnot-to-exceed $1,250,000; and\n(3) The proposed contract is exempt from competitive bidding and competitive selection pursuant to\nCity Charter, Section 1002(H), and Pasadena Municipal Code, Section 4.08.049(A)(3), contracts with other\ngovernment\nentities.

3. AMEND THE FIRE DEPARTMENT FISCAL YEAR (FY) 2025 OPERATING BUDGET BY RECOGNIZING\nREVENUE AND APPROPRIATING $105,370 FROM RIO HONDO COMMUNITY COLLEGE DISTRICT TO\nFUND\nVOCATIONAL TRAINING PROGRAMS AND FIRE EQUIPMENT (Fire Dept.)\nRecommendation: It is recommended that the City Council:\n(1) Find that the recommended actions in the agenda report are exempt from the California\nEnvironmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines per Section 15061(b)(3), the “Common\nSense” exemption that\nCEQA only applies to projects that may have an effect on the environment; and\n(2) Amend the Fire Department Fiscal Year (FY) 2025 Operating Budget by recognizing revenue and\nappropriating $105,370 from Rio Hondo Community College District to fund vocational training programs and fire\nequipment.

4. FINANCE COMMITTEE: APPROVE AMENDMENTS TO FISCAL YEAR 2025 ADOPTED OPERATING\nBUDGET (Finance Dept.)\nRecommendation: It is recommended that the City Council:\n(1) Find that the proposed action in the agenda report is not a “project” subject to the California\nEnvironmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 21065 and within the meaning of\nSection 15378(b);\nand\n(2) Approve amending the Fiscal Year (FY) 2025 Adopted Operating Budget as detailed in the agenda\nreport by a net amount of $4,345,136.

5. MUNICIPAL SERVICES COMMITTEE: DIRECT THE CITY ATTORNEY TO PREPARE AN ORDINANCE\nAMENDING PASADENA MUNICIPAL CODE CHAPTER 13.04 TO REMOVE STRANDED INVESTMENT\nCHARGE AND RESERVES AND TO INCLUDE A WORKING CAPITAL RESERVE TARGET WITHIN 60\nDAYS (Water & Power Dept.)\nRecommendation: It is recommended that the City Council:\n(1) Find that the action proposed in the agenda report is not a “project” subject to the California\nEnvironmental Quality Act (CEQA) pursuant to California Public Resources Code Section 21065 and within the\nmeaning of State\nCEQA Guidelines Section 15378(b); and\n(2) Direct the City Attorney to prepare an ordinance, and return within 60 days, amending Pasadena\nMunicipal Code (“PMC”) Chapter 13.04, the light and power rate ordinance to:\na. Amend Section 13.04.173 – Power cost adjustment.\nb. Amend Section 13.04.175 – Reserve for stranded investment and change title to “Reserve for\nworking capital”; and,\nc. Remove 13.04.176 – Stranded investment surcharge.\nRecommendation of the Municipal Services Committee (MSC):\nOn February 11, 2025, the MSC approved the staff recommendation to direct the City Attorney’s Office to\nprepare an ordinance to amend PMC 13.04; the code change would create a working capital reserve target\npolicy. Staff\nreceived guidance to also create a minimum level for reserves to establish the point at which reserve levels\nwould be detrimental to the operations of the utility.\nThe basis for a minimum is recommended to be 60 days, as compared to 90 days for the target, for liquidity\nreserve for operating expenses (2) the market reserve category, and (3) the contingency risk category. Given that\nthe current\nminimum reserve level within the City’s Fund Balance Reserve Policy for the Light and Power Fund is 60\ndays of operating expenses, this recommendation is consistent with adopted policy. The revision to the code\nwould also\nacknowledge that there are many other risks that the utility faces that require sufficient working capital in a\nrapidly changing industry and world\nCity Council

6. APPOINTMENTS, REAPPOINTMENTS, AND RESIGNATIONS\nAPPOINTMENT OF JOE FEINBLATT TO THE DESIGN COMMISSION (Arts & Culture Commission\nNomination)\nRESIGNATION OF LORENA YEPEZ HERNANDEZ FROM THE NORTHWEST COMMISSION (District 5\nNomination)\nRESIGNATION OF CRAIG WASHINGTON FROM THE ROSE BOWL OPERATING COMPANY BOARD\nEFFECTIVE FEBRUARY 28, 2025 (Tournament of Roses Nomination)