LATHE PORTOF LOS ANGELES 425 S.Palos Verdes Street Post Office Box 151 San Pedro, CA 90733.0151 TEl/TDD 310 SEA-PORT www.portoflosongeles.org

Eric Garcetti

Board of HarborCommissioners

Mayor, CIty of Los Angeles

Ambassador Vilma S.Martinez David Arian PatriciaCastellanosPresident Vice President

Anthony Pirozzi, Jr. Edward R. Renwick

Gary lee Moore, P.E. Interim Executive Director

March 7, 2014

Honorable Members of theCity Council of theCity of Los Angeles CD No. 15

Attention: Mr. Michael Espinosa, City Clerk's Office

SUBJECT: RESOLUTION NO. 13-7601 - PROFESSIONAL SERVICES AGREEMENTBETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT ANDARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICESFOR THE BERTHS 142-143 BACKLAND IMPROVEMENTS (PHASE 2-4)PROJECT

Pursuant to Section 373 of the City Charter, enclosed for your approval is Agreement No.13-3214 with Arcadis U.S., Inc., regarding the above subject. The Board of HarborCommissioners approved Agreement No. 13-3214 at its meeting of December 12, 2013.There is no impact to the General Fund.

RECOMMENDATION:

1. The City Council approve the proposed Agreement between the City of Los AngelesHarbor Department and Arcadis U.S., Inc.;

2. Adopt the determination by the Los Angeles Harbor Department that the proposedaction is exempt from the requirements of the California Environmental Quality Act(CEQA) in accordance with Article II, Section 2(i) of the Los Angeles City CEQAGuidelines; and

3. Return to the Board of Harbor Commissioners for further processing.

Respectfully Submitted,

~~\Y~AMBER M. KL~GESCommission Secretary

cc: Trade, Commerce, & Tourism CommitteeCouncilman Bonin, encs.Councilman LaBonge, encs.Councilman Buscalno. encs

Mandy Morales, Mayor's Office, enccs.Erick Martell, POLA Legislative Analyst, encs.

AN EQUAL EMPLOYMENT OPPORTUNITY" AFFIRMATIVE ACTION EMPLOYER

Alvin Newman, CAO, encs.Lisa Schechter, CD4, encsAaron Gross, Government Affairs, encs.Christine Yee Hollis, CLA, enos.

Printedon recycled poper@

RECOMMENDATION APPROVED;RESOLUTION NO. 13·760t ADOPTED AND;

AGREEMENT NQ 13·3214 APPROVEDBY THE BOARD OF HARBOR COMMISSIONERS

Decernber12,2013LATHE PORTOF LOS ANGELES

Executive Director'sReport to the

Board of Harbor Commissioners

DATE: DECEMBER 3, 2013

FROM: CONSTRUCTION

RESOLUTION NO. t)-i-LPb \ - PROFESSIONALSERVICES AGREEMENT BETWEEN THE CITY OF LOS ANGELESHARBOR DEPARTMENT AND ARCADIS U.S., INC. FORCONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS 142-143 BACKLAND IMPROVEMENTS (PHASES 2-4) PROJECT

SUBJECT:

SUMMARY:

The Berths 142-143 Backland Improvements (Phases 2-4) project (Project) is acomponent of the phased development of the Berths 136-147 Trans Pacific ContainerServices, Corp. (TraPac) Container Terminal Improvement Program. This Project ispart of the overall automated container terminal development program at the TraPacterminal. The scope of this Project consists of the construction of 15 automatedstacking blocks (and related infrastructure), each with the capacity to operate twoautomated stacking cranes over 72 acres of container terminal backland. Thisprofessional services agreement (Agreement) provides for construction managementservices for the construction of the Project. ARCADIS, U.S., Inc., located in Irvine,California is recommended to provide the required services. The Agreement amount is$5,645,000 for a duration of four years.

RECOMMENDATION:

It is recommended that the Board of Harbor Commissioners (Board):

1. Find that in accordance with the City Charter Section 1022, work under the subjectAgreement can be performed more feasibly by an independent consultant, and isnecessary due to a peak in work volumes, and current employees being committedto other assignments;

2. Award the four-year Agreement to ARCADIS, U.S., Inc. in the amount of$5,645,000; and authorize payment from the Construction Management Servicesaccount;

DATE: DECEMBER 3,2013 PAGE 2 OF6

SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTIONMANAGEMENT SERVICES FOR THE BERTHS 142-143 BACKLANDIMPROVEMENTS (PHASES 2-4) PROJECT

3. Authorize the Executive Director to execute, and the Board Secretary to attest to,this Agreement for and on behalf of the Board;

4. Adopt Resolution No. J0r3:L.eb \ ;and

5. Direct the Board Secretary to forward the Agreement to the City Council for itsapproval pursuant to Section 373 of the City Charter.

DISCUSSION:

Background/Context - On December 6, 2007, the Board approved the Berths 136-147[TraPac] Container Terminal Environmental Impact Report (EIR). On September 19,2013, an addendum to this EIR, for the Berths 142-143 Backland Improvements Project,was considered by the Board in connection with the Second Amendment to Permit No.881. On September 4, 2008, the Board approved a Level III Coastal DevelopmentPermit (No. 08-07) for the TraPac Terminal Expansion Project, Berths 136-147.

On June 6, 2013, State Proposition 1B Trade Corridors Improvement Fund Program -California Transportation Commission "Baseline Agreements" between the City of LosAngeles Harbor Department (Harbor Department) and the State of California wasapproved by the Board.

On November 21, 2013, the Board approved Resolution No.I~-=tS89 , authorizingaward of the construction contract for the Project (Specification No. 2756) to GriffithCompany, in the amount of $105,675,310.

This Agreement (Transmittal 1) is for construction management services duringconstruction of the Project, which is part of the overall automated container terminaldevelopment program at the TraPac terminal. The duration of the construction contractis 1,080 calendar days. Construction is anticipated to start in February 2014 and becompleted in early 2017. An aerial site plan showing the location of the Project can befound on Transmittal 4.

Harbor Department Construction Division staff are not available to adequately supportthis project. Staff is currently fully engaged supporting the construction of projectstotaling over $700 million. The consultant team, providing staff augmentation, will beled by a Construction Division staff member. Staff also reached out to other City of Los

DATE: DECEMBER 3,2013 PAGE 3 OF 6

SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTIONMANAGEMENT SERVICES FOR THE BERTHS 142-143 BACKlANDIMPROVEMENTS (PHASES 2-4) PROJECT

Angeles (City) departments performing these services, and found that City staff isunavailable to support this Project. Consultant services are therefore required to provideadditional construction management expertise and augment Harbor Departmentconstruction management staff.

Scope of Services - Consultant services will include, but are not limited to constructionmanagement, cost estimating, scheduling, document control, and coordination with allstakeholders.

Reason for City Council Approval..,. The duration of the construction contract for theBerths 142-143 Backland Improvements project is three years. There will be a one yearpost-construction period in which the Project will be closed out. Constructionmanagement services will be required during construction and post-construction. Asthis is a four-year agreement, the Harbor Department is required by the CityAdministrative Code to obtain City Council approval.

Selection Process - On July 16, 2012, a Request for Qualifications (RFQ) to performconstruction management services for construction of the Berths 142-147 IntermodalContainer Transfer Facility (ICTF) project, and the Berths 142-143 BacklandImprovements (Phases 2-4) project, was advertised and published. Seven Statement ofQualifications (SOQs) were received. A selection committee consisting of membersfrom the Construction Division, and one member from the Port of Long Beach,evaluated the. SOQs based on qualifications of the prime and subconsultants, anddeemed all seven firms to be qualified to be invited to submit a proposal to provide thesubject services. The seven firms are as follows:

• AECOM Technical Services, Inc. (Irvine, CA)• ARCADIS, U.S., Inc. (Los Angeles, CA)• WorleyParsons Group, Inc. (Fountain Valley, CA)• Berg & Associates, Inc. (San Pedro, CA)• TranSystems Corporation (Long Beach, CA)• Atkins North America, Inc. (Los Angeles, CA)• Vanir Construction Management, Inc. (Los Angeles, CA)

The Harbor Department issued a Request for Proposals (RFP) to the seven firms onDecember 3, 2012. Proposals were received on March 15, 2013. Six firms proposed toprovide services for both projects. TranSystems Corporation, lnc., proposed to provideservices for only the Berths 142-147 ICTF project. The proposals were evaluated andranked by the evaluation committee. For this Project, the following four firms wereinvited to deliver a presentation of their proposal to, and answer specific questions from,

DATE: DECEMBER 3, 2013 PAGE 4 OF 6

SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTIONMANAGEMENT SERVICES FOR THE BERTHS 142-143 BACKLANDIMPROVEMENTS (PHASES 24) PROJECT

the evaluation committee:

• AECOM Technical Services, Inc.• ARCADIS, U.S., Inc.• WorleyParsons Group, Inc.• Berg & Associates, Inc.

The evaluation committee interviewed the four firms and selected ARCADIS, U.S., Inc.,as the most qualified firm because of its extensive experience with constructionmanagement. Transmittal 2 shows the consultant rankings and evaluations. Transmittal3 provides the work descriptions for ARCADIS, U.S., Inc., and their sub-consultants.

The recommendation for award for the Agreement for the construction managementservices for the Berths 142-147 ICTF project will be made under a separate Boardreport.

Small Business Enterprise (SBE) Program. Verv Small Business Enterprise (VSBE) andSub-consultant. Participation - ARCADIS, U.S., Inc., has committed to the SBEparticipation level of 25 percent, and VSBE participation of five percent. Their sub-consultants are:

• Integrated Engineering Management (SBE, VSBE)• MBI Media (SBE)• LelandSaylor (SBE)• Safework (SBE, VSBE)

ENVIRONMENTAL ASSESSMENT:

The proposed action is approval of a professional services agreement with ARCADlS,U.S., Inc. for construction management services for the Berths 142-143 BacklandsImprovements project. The Project was included as part of the Berths 136-147 [TraPac]Final Environmental Impact StatementlEIR which was certified by the Board inDecember 2007 and the EIR addendum considered by the Board on September 19,2013. Therefore, as an activity for which the underlying Project has previously beenevaluated for environmental significance and processed according to the requirementsof the California Environmental Quality Act (CEQA), the Director of EnvironmentalManagement has determined that the proposed action is exempt from the requirementsof CEQA in accordance with Article II, Section 2(i) of the Los Angeles City CEQAGuidelines.

DATE: DECEMBER 3,2013 PAGE 5 OF6

SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTIONMANAGEMENT SERVICES FOR THE BERTHS 142-143 BACKLANDIMPROVEMENTS (PHASES 2-4) PROJECT

ECONOMIC BENEFITS:

Spending under the proposed contract will support 45 direct and 37 secondary one-yearequivalent jobs for the five-county region.

Although the consultant is not obligated to perform any work under the contract in anyfiscal year in which no appropriation for the contract has been made, the consultantagrees to resume performance of the work required by the contract on the same termsand conditions for a period of 60 days after the end of the fiscal year if an appropriation,therefore, is approved within that 60-day period.

The consultant is responsible for maintaining all insurance and bonds during this 60-dayperiod. The time for performance shall be extended during this period until theappropriation is made; however, such extension of time is not compensable.

If in any subsequent fiscal year funds are not appropriated for work required by thecontract, the contract shall be terminated. However, such termination shall not relievethe parties of liability for any obligation previously incurred.

FINANCIAL IMPACT:

The Berths 142-143 Backland Improvements (Phases 2-4) project is one of ten projectsincluded in the TraPac Terminal Improvements Program (Program). The Programbudget was approved by the Board on September 19, 2013, at $510,412,338, and thisProject is budgeted at $143,422,405. Both this Project and the TraPac TerminalImprovements Program are currently on budget and on schedule. Transmittal 5 showsthe budget status for the ten projects.

Funding in the amount of $460,131 for construction management services has beenbudgeted in the fiscal year 2013/2014 budget in Account No. 54225 (ConstructionManagement Services), Work Order No. 24498, Center No. 1103, and Program No.000. It is anticipated that funds for this Agreement will be expended as follows:

Fiscal Year Amount

FY 2013/2014FY 2014/2015FY 2015/2016FY 2016/2017FY 2017/2018

TOTAL

$ 460,131$1,548,869$1,607,000$1,412,000$ 617.000$5,645,000

DATE: DECEMBER 3, 2013 PAGE 6 OF 6

SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTIONMANAGEMENT SERVICES FOR THE BERTHS 142-143 BACKLANDIMPROVEMENTS (PHASES 2-4) PROJECT

The maximum compensation under this Agreement is $5,645,000. Approximately $2.32million of the contract amount is on a fixed-fee basis, with approximately $3.33 million ofservices to be compensated on an hourly basis through individual sub-task projectdirectives issued under Exhibit "C" and Exhibit "0" of the Agreement.

This Agreement, along with the other projects and agreements that comprise theTraPac Terminal Program, is currently within the budgets approved by the Board onSeptember 19, 2013, totaling $510,412,338.

CITY ATTORNEY:

The Office of the City Attorney has prepared and approved the Agreement as to formand legality.

TRANSMITTALS:

1. Agreement between the City of LosAngeles and ARCAOIS, U.S., Inc.2. Final Evaluation and Rankings3. Consultant and Sub-consultant Work Description4. Site Map5. Budget Status Sheet

FIS Approval' -r£"~(lnitials)CA pr (Initials)

,

SHAU SHAHRESTANIChief Harbor EngineerConstruction Division

MIC AEL R. CHRISTENSENDe ty Executive Director

APPROVED:

4r.~~GARY LEE MOORE, P.E.Interim Executive Director

JD:beAgmtArcadisB01

Author: J. Davis

\

0150-10149-0000TRANSMITTAL

TO DATE COUNCIL FILE NO.

Gary Lee Moore, Interim Executive DirectorHarbor Department MAR 32014FROM COUNCIL DISTRICT

The Mayor 15

PROPOSED PROFESSIONAL SERVICES AGREEMENT WITH ARCADIS U.S.INCORPORATEDFOR CONSTRUCTION MANAGEMENT SERVICES FOR THE

BERTHS 142-143 BACKLAND IMPROVEMENTS (PHASE 2-4) PROJECT

Transmitted for further processing and Council consideration.See the City Administrative Officer report attached.

the Grcd

~

MAYOR (Rich Llewellyn)

MAS:ABN:10140137t

CAO 649-d

REPORT FROM

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Date: February 25, 2014

From:

CAO File No. 0150-10149-0000Council File No.Council District: 15

T~M~r . • JMiguel A. Santana, City Administrative Offi~ C '.:f--"

To:

Reference: Correspondence from the Harbor Department dated January 13, 2014; referred by theMayor for report January 17, 2014

Subject: PROPOSED PROFESSIONAL SERVICES AGREEMENT WITH ARCADIS U.S.INCORPORATED FOR CONSTRUCTION MANAGEMENT SERVICES FOR THEBERTHS 142-143 BACKLAND IMPROVEMENTS (PHASE 2-4) PROJECT

SUMMARY

The Harbor Department (Port) Board of Harbor Commissioners (Board) requests approval ofResolution No. 13-7601 to authorize a proposed Personal Services Agreement No. 13-3214'(Agreement) with Arcadis U.S. Incorporated (Arcadis) for construction management services for thePort of Los Angeles (POLA) Berths 142-143 Backland Improvements (Phase 2-4) Project (Project).This proposed Agreement is for work that is part of the phased automated container terminaldevelopment project for Berths 136-147 Trans Pacific Container Services Corporation (TraPac).Program, approved by the Mayor and Council (C.F. 09-2165) in 2009. According to the Port, Arcadiswill assist the Port and provide construction management services, administration and coordinationby managing the construction of container terminal backlands and related infrastructure. Theproposed Agreement will be for a maximum amount of $5,645,000 and a term of approximately fouryears, from the effective date of contract approval to the 2017/18 fiscal year (FY). In accordance withCharter Section 373, Council approval is required because the cumulative term of the Agreementextends beyond three years.

BACKGROUND

In 2009, the Mayor and Council approved a 30-year lease agreement with TraPac to expand andmodernize PO LA-owned land and waterside areas, for use by TraPac to redevelop container cargoterminals, and wharf and backland facilities at POLA Berths 136-147. The berths improvements willintegrate the existing property sites, increase berthing and backland capacity for larger containerships, and develop an on-dock rail facility. According to the Port, the modern terminal includesmultiple berths which are able to effiCiently handle larger container vessels within excess of 5,000twenty-foot equivalent units (TEUs), and have environmentally compliant operations. A TEU is astanding unit of measure for cargo containers. The TraPac Program will have preferential use of 226acres and Berths 136-147 upon completions of all improvements to the terminal properties.

CAOFileNo, PAGE0150-10149-0000 2

In July 2012, the Port released a Request for Qualifications (RFQ) to perform constructionmanagement services for the two separate construction projects of Berths 142-43 BacklandImprovements Project (Backland) and Berths 142-147lntermodal Container Transfer Facility (ICTF)Project. The Port received seven qualified RFQs for both construction projects and then asked theseven contractors to submit a follow-up Request for Proposal (RFP) for the requested projects. Six ofthe contractors submitted RFPs for both projects and one submitted a RFP for the ICTF Project only.In December 2013, the Board reviewed and selected Arcadis U.S. Inc. as the most qualified toperform the construction management services for the Berths 142-143 Backland ImprovementProject. The selection of Arcadis was based on the following categories: personnel qualifications ofthe lead contractor and subcontractors; project management and coordination; compliance with thescope of work; cost estimates and labor rates; and ability to coordinate and manage the work withinthe Port's project schedules

The two projects of Backland (Berths 142-143) and ICTF (Berths 142-147) have different project landboundaries, construction schedules, and budgets under the TraPacProgram (See Attachment). Theproposed Backland Project (Berths 142-143) infrastructureis on a large POLA land area leased byTraPac for use by the shipping terminal for handling and storage of Port goods for import and export.In contrast, the ICTF Project (Berths 142-147) handles intermodal transport, which is the ability to,move the same container between ships, trucks, and rail. ACcording to the Port, the two projects dohave a relatively small overlapping area. However, these projects will be constructed in phases suchthat the contractor for the proposed Backland Project (Berths 142-143) will be completed before theICTF Project. The Port will submit a contractor to perform construction management services for theBerths 142-147 ICTF Project under a separate report in the future.

CONSTRUCTION MANAGEMENT SERVICES

Arcadis is a leading provider of program, project, construction management, transportation,infrastructure, and claims consulting services to public sector clients throughout tile State and theU.S. According to the Port, Arcadis has worked at five ports in theWestern U.S. and has participatedin several major projects for the Ports of LA, Long Beach and San Diego. Port project experienceincludes pier, wharf, terminals, backland improvements, waterfront enhancements and on dock railand gantry rail cranes. In addition, Arcadis has 15 years of experience working with other Cityagencies. The Port states that Arcadis has the required professional, scientific, and technicalexpertise to assist in and perform the operation and maintenance of construction managementservices for the proposed Berths 142-143 Backland Improvements Project (Project).

The Arcadlscontractors will be responsible to manage and coordinate all construction activities,other team members, including the subcontractors, and other project phases related to the contractagreement. These management services will include the process and completion of the proposedProject during construction start-up, construction scheduling related to compliance with contractrequirements, and post-construction and optional services, In addition, Arcadis project managers willprepare, manage, and report to and assist Port staff with the following actions: change orders;informational requests; quality control, engineering and construction documents; environmentalmitigation compliance; data systems; visual media; and other construction management services.

CAO File No. PAGE

0150-10149-0000 3

The Port states that the Project will develop 72 acres of terminal backland at Berths 142-143.According to the Port, the backland is the largest area of the shipping terminal leased to a POLAcustomer to handle containerized and other goods for import and export. The Project work willinclude the following: construction of 15 automated stacking blocks, each with the capacity to operatetwo automated stacking cranes; 32,000 linear (straight) feet of new crane rail; and construction ofracks, electrical, communication, and other related infrastructure. This Project is one of ten projectsincluded in the TraPac Program to increase operational efficiencies and develop the automatedcontainer terminal program. TraPac is the operator of the overall terminal and berths.

In 2013, the estimated budget for the overall TraPac Program was approved for a total ofapproximately $510.4 million for 10 redevelopment construction projects. The construction cost forthe Project of Berths 142-143, one of the 10 TraPac Projects, has been budgeted for approximately$143.4 million dollars (See Attachment). Arcadis will be compensated in an amount not to exceed$5,645,000 to provide construction management services for the automated container terminaldevelopment program. The Port states that the proposed Agreement includes compensation of $2.32million on a fixed-fee basis and approximately $3.33 million on an hourly cost basis throughindividual scope of work directives. Compensation for Arcadis will include funding to implementmanagement services for the scope of work breakdown for pre-construction, construction, post-construction and optional services. The Port has included funding in the current FY 2013/14 budgetand funding spread over every subsequent budget period until FY 2017/18, as follows:

. Fiscal Year 2013/14 I 2014/15 I 2015/16 I 2016/17· I 2017118Amount $460,131 1$ 1,548,869 1$ 1,607,000 1$ 1,412,000 1$617,000

FY 2013-18 $ 5,645,000

The Griffith Company (Griffith) was awarded the construction contract through a RFP in the amountof$1 05,675,31 0 to complete the Project, minus any contingency amounts. The Port states that theProject is partially funded, in the amount of $26,664,000, under the Proposition 1B and State TradeCorridor Improvement, through the State's Department ofTransportation. The Port is contributing thebalance of the cost share for the proposed Project of $79,011,310. Arcadis, as part of theconstruction management team, will work with Griffith and Port staff. Arcadis' contractors are notrequired to perform work in any fiscal year in which an appropriation for the contract has not beenapproved by the Board. The Agreement will be deemed terminated if the Board does not approvefunds for any subsequent fiscal year. The Port states that the proposed Agreement would support asmany as 45 direct and 37 secondary one-year equivalent jobs for the five-county region.

Some of the above-referenced aspects of the proposed Agreement, and this report, incorporaterevised information received from the Port subsequent to the initial request submittal.

CITY COMPLIANCES ISSUES

The proposed Agreement has been approved by the City Attomey as to form and legality. The Portstates that the contractor is in compliance with applicable City provisions including Equal Benefits,City Living Wage and Service Contract Worker Retention, Affirmative Action and Minority, Woman,Disabled Veteran and Other Business Enterprises compliances. In addition, the Port states that the

CAOFile No. PAGE0150-10149-0000 4

proposed Agreement, and contract with Griffith, requires minimum percentage goals for SmallBusiness Enterprise (SBE) and Very Small Business Enterprise (VSBE) participation.

Pursuant to Charter Section 1022, the Port states that work under the proposed contract can beperformed more feasibly by an independent contractor instead of City employees because of thetemporary nature of project and the demand on limited Port resources and personnel. According tothe Port, its staff is currently supporting over $700 million in projects construction. The Port inquiredabout the use of temporary, qualified City employee staff to perform the scope of work duties andreceived a response that other City staff was unavailable to support the proposed Project. The Portalso would have to allow time to train City staff to meet the temporary and as-needed workloadrequirements.

The proposed Project was included as part of the TraPac Program. As a result, the FinalEnvironmental Impact Report (EIR) has already been evaluated and approved by the Board.Therefore, the Port Director of Environmental Management has determined that the tasks in theproposed Agreement are administrative activities and exempt from the requirements ofthe CaliforniaEnvironmental Quality Act (CEQA) in accordance with Article II, Section 2(i) of the Los Angeles City .CEQA Guidelines.

RECOMMENDATION

That the Mayor:

1. Approve Harbor Department (Port) Board of Harbor Commissioners Resolution No. 13-7601to authorize Personal Services Agreement No. 13-3214 with Arcadis U.S. Incorporated forconstruction management services for the Port of Los Angeles (POLA) Berths 142-143Backland Improvements (Phase 2-4) Project for a four-year contract term, commencing on theeffective date of approval and a compensation amount of $5,645,000; and,

2. Return the proposed document to the Port for further processing, including Councilconsideration.

FISCAL IMPACT STATEMENT

The proposed Agreement between the Harbor Department (Port) and Arcadis U.S. Inc. will be for afour year contract term, compensated in an amount not to exceed $5,645,000 to provide constructionmanagement services, for the Port of Los Angeles' Berths 142-143 Backland Improvements (Phase2-4) Project (Project), with an estimated total construction budget of $143,422,405. The GriffithCompany was awarded a construction contract through a RFP in the amount of $105,675,310 tocomplete the Project, minus any contingency amounts. The Project is partially funded , in the amountof $26,664,000, under the Proposition 1B and State Trade Corridor Improvement, through the State'sDepartment of Transportation. The Port will contribute the balance of the cost sharefor the proposedProject from its Harbor Revenue Fund. The proposed expenditure of the funds will be spread overfive fiscal years, from FY 2013/14 to FY 2017/18. The Port states that any subsequent financialobligations after the current fiscal year must be approved by the Board as part ofthe Port's annual,

CAO File No. PAGE0150-10149-0000 5

budgeting process. There is no impact to the City General Fund and funding for the proposedAgreement will be included in the Harbor Revenue Fund.

TIME LIMIT FOR COUNCIL ACTION

Pursuant to Charter Section 373, "Long Term Contracts Approved by Council," the proposedAgreement must be approved by the Council before it can become effective. Unless the Counciltakes action by disapproving a contract that is longer than three years within 60 days aftersubmission to Council, the contract will be deemed approved.

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