City Council

(28)\n26-0053\nEXEMPTION, ENERGY AND ENVIRONMENT COMMITTEE REPORT\nand ORDINANCE FIRST CONSIDERATION relative to the utilization\nof an alternative project delivery method on a competitive sealed\nproposal basis and approval of project delivery criteria for the Encino\nReservoir Floating Pilot Project (Project).\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. DETERMINE that this Project is exempt pursuant to the\nCalifornia Environmental Quality Act (CEQA) Guidelines Section\n15060(c)(2). In accordance with this section, an activity is not\nsubject to CEQA if it will not result in a direct or reasonably\nforeseeable indirect physical change in the environment. The\napproval of this draft ordinance will authorize the use of the\ncompetitive sealed bid proposal method to let a contract and will\nnot result in any physical change in the environment; therefore,\nthe proposed action is not subject to CEQA.\n2. APPROVE Board of Water and Power Commissioners (Board)\nResolution for the Project:\na. Authorizing the Department of Water and Power (DWP) to\nutilize a competitive sealed bid proposal process in\naccordance with Charter Section 371(b), establish\nalternative project delivery contract criteria using the\nEngineer-Procure-Construct method, and execute a\ncontract for a term not-to-exceed five years, with two one-\nyear renewal options for a total of seven years.\nb. Award a contract at an estimated cost of $24.175 million\nfor the complete design, engineering, procurement, and\nconstruction of the Project.\n3. PRESENT and ADOPT the accompanying ORDINANCE dated\nFebruary 4, 2026, authorizing the Board to award an agreement\npursuant to a competitive sealed proposal method, to permit\nnegotiations relating to the engineering, procurement, and\nconstruction of the Project.\nFiscal Impact Statement: The City Administrative Officer reports that\napproval of the proposed Resolution and Ordinance authorizing DWP\nto use the competitive sealed proposal method to secure an\nEngineer-Procure-Construct contract for the Project will not have a\nGeneral Fund impact. The ensuing contract will impact the DWP\nPower Revenue Fund and result in total estimated Project\nexpenditures of $24.175 million. The recommendations above comply\nwith the DWP adopted Financial Policies.