City Council

(24)\n26-0191\nEXEMPTION, ENERGY AND ENVIRONMENT COMMITTEE REPORT\nand ORDINANCE FIRST CONSIDERATION relative to the Large\nPower Transformers and Variable Shunt Reactors for Various\nSubstations Project (Project).\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. DETERMINE that the Project is exempt pursuant to Section\n15060(c)(3) of the California Environmental Quality Act (CEQA)\nGuidelines. In accordance with this section, an activity is not\nsubject to CEQA if it does not meet the definition of a project.\nSection 15378(b)(4) states that government fiscal activities\nwhich do not involve any commitment to any specific project\nwhich may result in a potentially significant physical impact on\nthe environment do not meet the definition. Therefore, the\napproval of this draft ordinance to authorize procurement of\npower transformers, spare parts, and commissioning services is\nnot subject to CEQA.\n2. APPROVE the Department of Water and Power (DWP)\nproposed Resolution for the Large Power Transformers and\nVariable Shunt Reactors for Various Substations Project:\na. Authorizing the DWP to use a competitive sealed bid\nproposal method in accordance with Charter Section\n371(a) and Los Angeles Administrative Code (LAAC)\nSection 10.15(f), permitting negotiations after proposals\nare submitted to allow clarifications and changes to the\nproposal.\nb. Award in whole or in part, one or more contracts at an\nestimated cost of $732 million and a term not-to-exceed\nnine years, to procure large power transformers and\nvariable shunt reactors for various substations, including\nspare parts and associated manufacturer representative\nservices.\n3. PRESENT and ADOPT the accompanying ORDINANCE dated\nFebruary 24, 2026, authorizing the Board of Water and Power\nCommissioners to award one or more agreements pursuant to a\ncompetitive sealed proposal method and to permit negotiations\nrelating to the procurement of highly specialized power system\nequipment.\nFiscal Impact Statement: The City Administrative Officer reports that\nthere is no impact on the General Fund. The proposed Resolution and\nOrdinance authorizes the use of the competitive sealed proposal\nmethod under LAAC Section 10.15(f) to procure Large Power\nTransformers, Variable Shunt Reactors, spare parts, and associated\nmanufacturer representative services. The Resolution and Ordinance\ncovers only administrative costs and excludes any contract\nexpenditures. The ensuing contract(s) is funded through a power\nreliability surcharge passed on to DWP customers for a total\nestimated cost of approximately $732 million. The above\nrecommendations comply with the DWP adopted Financial Policies.