~~\Y~ AMBER M. KL~GES Commission Secretary

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1 LA THE PORT OF LOS ANGELES Eric Garcetti Board of Harbor Commissioners Gary lee Moore, P.E. 425 S.Palos Verdes Street Post Office Box 151 San Pedro, CA Mayor, CIty of Los Angeles Ambassador Vilma S.Martinez David Arian PatriciaCastellanos President Vice President Interim Executive Director TEl/TDD 310 SEA-PORT Anthony Pirozzi, Jr. Edward R. Renwick March 7, 2014 Honorable Members of the City Council of the City of Los Angeles CD No. 15 Attention: Mr. Michael Espinosa, City Clerk's Office SUBJECT: RESOLUTION NO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKLAND IMPROVEMENTS (PHASE 2-4) PROJECT Pursuant to Section 373 of the City Charter, enclosed for your approval is Agreement No with Arcadis U.S., Inc., regarding the above subject. The Board of Harbor Commissioners approved Agreement No at its meeting of December 12, There is no impact to the General Fund. RECOMMENDATION: 1. The City Council approve the proposed Agreement between the City of Los Angeles Harbor Department and Arcadis U.S., Inc.; 2. Adopt the determination by the Los Angeles Harbor Department that the proposed action 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 CEQA Guidelines; and 3. Return to the Board of Harbor Commissioners for further processing. Respectfully Submitted, cc: Trade, Commerce, & Tourism Committee Councilman Bonin, encs. Councilman LaBonge, encs. Councilman Buscalno. encs Mandy Morales, Mayor's Office, enccs. Erick Martell, POLA Legislative Analyst, encs. ~~\Y~ AMBER M. KL~GES Commission Secretary Alvin Newman, CAO, encs. Lisa Schechter, CD4, encs Aaron Gross, Government Affairs, encs. Christine Yee Hollis, CLA, enos. AN EQUAL EMPLOYMENT OPPORTUNITY" AFFIRMATIVE ACTION EMPLOYER Printedon recycled poper@

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3 RECOMMENDATION APPROVED; RESOLUTION NO t ADOPTED AND; AGREEMENT NQ APPROVED BY THE BOARD OF HARBOR COMMISSIONERS Decernber12,2013 LA THE PORT OF LOS ANGELES Executive Director's Report to the Board of Harbor Commissioners DATE: DECEMBER 3, 2013 FROM: SUBJECT: CONSTRUCTION RESOLUTION NO. t)-i-lpb \ - PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKLAND IMPROVEMENTS (PHASES 2-4) PROJECT SUMMARY: The Berths Backland Improvements (Phases 2-4) project (Project) is a component of the phased development of the Berths Trans Pacific Container Services, Corp. (TraPac) Container Terminal Improvement Program. This Project is part of the overall automated container terminal development program at the TraPac terminal. The scope of this Project consists of the construction of 15 automated stacking blocks (and related infrastructure), each with the capacity to operate two automated stacking cranes over 72 acres of container terminal backland. This professional services agreement (Agreement) provides for construction management services 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 subject Agreement can be performed more feasibly by an independent consultant, and is necessary due to a peak in work volumes, and current employees being committed to 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 Services account;

4 DATE: DECEMBER 3,2013 PAGE 2 OF6 SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKLAND IMPROVEMENTS (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 its approval pursuant to Section 373 of the City Charter. DISCUSSION: Background/Context - On December 6, 2007, the Board approved the Berths [TraPac] Container Terminal Environmental Impact Report (EIR). On September 19, 2013, an addendum to this EIR, for the Berths Backland Improvements Project, was considered by the Board in connection with the Second Amendment to Permit No On September 4, 2008, the Board approved a Level III Coastal Development Permit (No ) for the TraPac Terminal Expansion Project, Berths On June 6, 2013, State Proposition 1B Trade Corridors Improvement Fund Program - California Transportation Commission "Baseline Agreements" between the City of Los Angeles Harbor Department (Harbor Department) and the State of California was approved by the Board. On November 21, 2013, the Board approved Resolution No.I~-=tS89, authorizing award of the construction contract for the Project (Specification No. 2756) to Griffith Company, in the amount of $105,675,310. This Agreement (Transmittal 1) is for construction management services during construction of the Project, which is part of the overall automated container terminal development program at the TraPac terminal. The duration of the construction contract is 1,080 calendar days. Construction is anticipated to start in February 2014 and be completed in early An aerial site plan showing the location of the Project can be found on Transmittal 4. Harbor Department Construction Division staff are not available to adequately support this project. Staff is currently fully engaged supporting the construction of projects totaling over $700 million. The consultant team, providing staff augmentation, will be led by a Construction Division staff member. Staff also reached out to other City of Los

5 DATE: DECEMBER 3,2013 PAGE 3 OF 6 SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKlAND IMPROVEMENTS (PHASES 2-4) PROJECT Angeles (City) departments performing these services, and found that City staff is unavailable to support this Project. Consultant services are therefore required to provide additional construction management expertise and augment Harbor Department construction management staff. Scope of Services - Consultant services will include, but are not limited to construction management, cost estimating, scheduling, document control, and coordination with all stakeholders. Reason for City Council Approval..,. The duration of the construction contract for the Berths Backland Improvements project is three years. There will be a one year post-construction period in which the Project will be closed out. Construction management services will be required during construction and post-construction. As this is a four-year agreement, the Harbor Department is required by the City Administrative Code to obtain City Council approval. Selection Process - On July 16, 2012, a Request for Qualifications (RFQ) to perform construction management services for construction of the Berths Intermodal Container Transfer Facility (ICTF) project, and the Berths Backland Improvements (Phases 2-4) project, was advertised and published. Seven Statement of Qualifications (SOQs) were received. A selection committee consisting of members from the Construction Division, and one member from the Port of Long Beach, evaluated the. SOQs based on qualifications of the prime and subconsultants, and deemed all seven firms to be qualified to be invited to submit a proposal to provide the subject 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 on December 3, Proposals were received on March 15, Six firms proposed to provide services for both projects. TranSystems Corporation, lnc., proposed to provide services for only the Berths ICTF project. The proposals were evaluated and ranked by the evaluation committee. For this Project, the following four firms were invited to deliver a presentation of their proposal to, and answer specific questions from,

6 DATE: DECEMBER 3, 2013 PAGE 4 OF 6 SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKLAND IMPROVEMENTS (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 construction management. Transmittal 2 shows the consultant rankings and evaluations. Transmittal 3 provides the work descriptions for ARCADIS, U.S., Inc., and their sub-consultants. The recommendation for award for the Agreement for the construction management services for the Berths ICTF project will be made under a separate Board report. Small Business Enterprise (SBE) Program. Verv Small Business Enterprise (VSBE) and Sub-consultant. Participation - ARCADIS, U.S., Inc., has committed to the SBE participation level of 25 percent, and VSBE participation of five percent. Their subconsultants 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 Backlands Improvements project. The Project was included as part of the Berths [TraPac] Final Environmental Impact StatementlEIR which was certified by the Board in December 2007 and the EIR addendum considered by the Board on September 19, Therefore, as an activity for which the underlying Project has previously been evaluated for environmental significance and processed according to the requirements of the California Environmental Quality Act (CEQA), the Director of Environmental Management has determined that the proposed action is exempt from the requirements of CEQA in accordance with Article II, Section 2(i) of the Los Angeles City CEQA Guidelines.

7 DATE: DECEMBER 3,2013 PAGE 5 OF6 SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKLAND IMPROVEMENTS (PHASES 2-4) PROJECT ECONOMIC BENEFITS: Spending under the proposed contract will support 45 direct and 37 secondary one-year equivalent jobs for the five-county region. Although the consultant is not obligated to perform any work under the contract in any fiscal year in which no appropriation for the contract has been made, the consultant agrees to resume performance of the work required by the contract on the same terms and 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-day period. The time for performance shall be extended during this period until the appropriation is made; however, such extension of time is not compensable. If in any subsequent fiscal year funds are not appropriated for work required by the contract, the contract shall be terminated. However, such termination shall not relieve the parties of liability for any obligation previously incurred. FINANCIAL IMPACT: The Berths Backland Improvements (Phases 2-4) project is one of ten projects included in the TraPac Terminal Improvements Program (Program). The Program budget was approved by the Board on September 19, 2013, at $510,412,338, and this Project is budgeted at $143,422,405. Both this Project and the TraPac Terminal Improvements Program are currently on budget and on schedule. Transmittal 5 shows the budget status for the ten projects. Funding in the amount of $460,131 for construction management services has been budgeted in the fiscal year 2013/2014 budget in Account No (Construction Management Services), Work Order No , Center No. 1103, and Program No It is anticipated that funds for this Agreement will be expended as follows: Fiscal Year FY 2013/2014 FY 2014/2015 FY 2015/2016 FY 2016/2017 FY 2017/2018 TOTAL Amount $ 460,131 $1,548,869 $1,607,000 $1,412,000 $ $5,645,000

8 DATE: DECEMBER 3, 2013 PAGE 6 OF 6 SUBJECT: AGREEMENT - ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKLAND IMPROVEMENTS (PHASES 2-4) PROJECT The maximum compensation under this Agreement is $5,645,000. Approximately $2.32 million of the contract amount is on a fixed-fee basis, with approximately $3.33 million of services to be compensated on an hourly basis through individual sub-task project directives issued under Exhibit "C" and Exhibit "0" of the Agreement. This Agreement, along with the other projects and agreements that comprise the TraPac Terminal Program, is currently within the budgets approved by the Board on September 19, 2013, totaling $510,412,338. CITY ATTORNEY: The Office of the City Attorney has prepared and approved the Agreement as to form and legality. TRANSMITTALS: 1. Agreement between the City of Los Angeles and ARCAOIS, U.S., Inc. 2. Final Evaluation and Rankings 3. Consultant and Sub-consultant Work Description 4. Site Map 5. Budget Status Sheet FIS Approval' -r "~(lnitials) CA pr (Initials), SHAU SHAHRESTANI Chief Harbor Engineer Construction Division MIC AEL R. CHRISTENSEN De ty Executive Director APPROVED: 4r.~~ GARY LEE MOORE, P.E. Interim Executive Director JD:be AgmtArcadisB01 Author: J. Davis

9 \ TRANSMITTAL TO DATE COUNCIL FILE NO. Gary Lee Moore, Interim Executive Director Harbor Department MAR FROM COUNCIL DISTRICT The Mayor 15 PROPOSED PROFESSIONAL SERVICES AGREEMENT WITH ARCADIS U.S. INCORPORATEDFOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS 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: t ~ CAO 649-d

10 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: February 25, 2014 CAO File No Council File No. Council District: 15 To: T~M~r. J From: Miguel A. Santana, City Administrative Offi~ C '.:f--" Reference: Correspondence from the Harbor Department dated January 13, 2014; referred by the Mayor for report January 17, 2014 Subject: PROPOSED PROFESSIONAL SERVICES AGREEMENT WITH ARCADIS U.S. INCORPORATED FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTHS BACKLAND IMPROVEMENTS (PHASE 2-4) PROJECT SUMMARY The Harbor Department (Port) Board of Harbor Commissioners (Board) requests approval of Resolution No to authorize a proposed Personal Services Agreement No ' (Agreement) with Arcadis U.S. Incorporated (Arcadis) for construction management services for the Port of Los Angeles (POLA) Berths Backland Improvements (Phase 2-4) Project (Project). This proposed Agreement is for work that is part of the phased automated container terminal development project for Berths Trans Pacific Container Services Corporation (TraPac). Program, approved by the Mayor and Council (C.F ) in According to the Port, Arcadis will assist the Port and provide construction management services, administration and coordination by managing the construction of container terminal backlands and related infrastructure. The proposed Agreement will be for a maximum amount of $5,645,000 and a term of approximately four years, from the effective date of contract approval to the 2017/18 fiscal year (FY). In accordance with Charter Section 373, Council approval is required because the cumulative term of the Agreement extends beyond three years. BACKGROUND In 2009, the Mayor and Council approved a 30-year lease agreement with TraPac to expand and modernize PO LA-owned land and waterside areas, for use by TraPac to redevelop container cargo terminals, and wharf and backland facilities at POLA Berths The berths improvements will integrate the existing property sites, increase berthing and backland capacity for larger container ships, and develop an on-dock rail facility. According to the Port, the modern terminal includes multiple berths which are able to efficiently handle larger container vessels within excess of 5,000 twenty-foot equivalent units (TEUs), and have environmentally compliant operations. A TEU is a standing unit of measure for cargo containers. The TraPac Program will have preferential use of 226 acres and Berths upon completions of all improvements to the terminal properties.

11 CAOFileNo, PAGE In July 2012, the Port released a Request for Qualifications (RFQ) to perform construction management services for the two separate construction projects of Berths Backland Improvements Project (Backland) and Berths lntermodal Container Transfer Facility (ICTF) Project. The Port received seven qualified RFQs for both construction projects and then asked the seven contractors to submit a follow-up Request for Proposal (RFP) for the requested projects. Six of the 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 to perform the construction management services for the Berths Backland Improvement Project. The selection of Arcadis was based on the following categories: personnel qualifications of the lead contractor and subcontractors; project management and coordination; compliance with the scope of work; cost estimates and labor rates; and ability to coordinate and manage the work within the Port's project schedules The two projects of Backland (Berths ) and ICTF (Berths ) have different project land boundaries, construction schedules, and budgets under the TraPacProgram (See Attachment). The proposed Backland Project (Berths ) infrastructureis on a large POLA land area leased by TraPac for use by the shipping terminal for handling and storage of Port goods for import and export. In contrast, the ICTF Project (Berths ) handles intermodal transport, which is the ability to, move the same container between ships, trucks, and rail. ACcording to the Port, the two projects do have a relatively small overlapping area. However, these projects will be constructed in phases such that the contractor for the proposed Backland Project (Berths ) will be completed before the ICTF Project. The Port will submit a contractor to perform construction management services for the Berths 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 the U.S. According to the Port, Arcadis has worked at five ports in thewestern U.S. and has participated in several major projects for the Ports of LA, Long Beach and San Diego. Port project experience includes pier, wharf, terminals, backland improvements, waterfront enhancements and on dock rail and gantry rail cranes. In addition, Arcadis has 15 years of experience working with other City agencies. The Port states that Arcadis has the required professional, scientific, and technical expertise to assist in and perform the operation and maintenance of construction management services for the proposed Berths 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 contract agreement. These management services will include the process and completion of the proposed Project during construction start-up, construction scheduling related to compliance with contract requirements, and post-construction and optional services, In addition, Arcadis project managers will prepare, manage, and report to and assist Port staff with the following actions: change orders; informational requests; quality control, engineering and construction documents; environmental mitigation compliance; data systems; visual media; and other construction management services.

12 CAO File No. PAGE The Port states that the Project will develop 72 acres of terminal backland at Berths According to the Port, the backland is the largest area of the shipping terminal leased to a POLA customer to handle containerized and other goods for import and export. The Project work will include the following: construction of 15 automated stacking blocks, each with the capacity to operate two automated stacking cranes; 32,000 linear (straight) feet of new crane rail; and construction of racks, electrical, communication, and other related infrastructure. This Project is one of ten projects included in the TraPac Program to increase operational efficiencies and develop the automated container 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 of approximately $510.4 million for 10 redevelopment construction projects. The construction cost for the Project of Berths , 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 terminal development program. The Port states that the proposed Agreement includes compensation of $2.32 million on a fixed-fee basis and approximately $3.33 million on an hourly cost basis through individual scope of work directives. Compensation for Arcadis will include funding to implement management services for the scope of work breakdown for pre-construction, construction, postconstruction and optional services. The Port has included funding in the current FY 2013/14 budget and 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 Amount $460,131 1$ 1,548,869 1$ 1,607,000 1$ 1,412,000 1$617,000 FY $ 5,645,000 The Griffith Company (Griffith) was awarded the construction contract through a RFP in the amount of$1 05,675,31 0 to complete the Project, minus any contingency amounts. The Port states that the Project is partially funded, in the amount of $26,664,000, under the Proposition 1B and State Trade Corridor Improvement, through the State's Department oftransportation. The Port is contributing the balance of the cost share for the proposed Project of $79,011,310. Arcadis, as part of the construction management team, will work with Griffith and Port staff. Arcadis' contractors are not required to perform work in any fiscal year in which an appropriation for the contract has not been approved by the Board. The Agreement will be deemed terminated if the Board does not approve funds for any subsequent fiscal year. The Port states that the proposed Agreement would support as many 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, incorporate revised 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 Port states 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

13 CAOFile No. PAGE proposed Agreement, and contract with Griffith, requires minimum percentage goals for Small Business Enterprise (SBE) and Very Small Business Enterprise (VSBE) participation. Pursuant to Charter Section 1022, the Port states that work under the proposed contract can be performed more feasibly by an independent contractor instead of City employees because of the temporary nature of project and the demand on limited Port resources and personnel. According to the Port, its staff is currently supporting over $700 million in projects construction. The Port inquired about the use of temporary, qualified City employee staff to perform the scope of work duties and received a response that other City staff was unavailable to support the proposed Project. The Port also would have to allow time to train City staff to meet the temporary and as-needed workload requirements. The proposed Project was included as part of the TraPac Program. As a result, the Final Environmental 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 the proposed Agreement are administrative activities and exempt from the requirements ofthe California Environmental 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 to authorize Personal Services Agreement No with Arcadis U.S. Incorporated for construction management services for the Port of Los Angeles (POLA) Berths Backland Improvements (Phase 2-4) Project for a four-year contract term, commencing on the effective date of approval and a compensation amount of $5,645,000; and, 2. Return the proposed document to the Port for further processing, including Council consideration. FISCAL IMPACT STATEMENT The proposed Agreement between the Harbor Department (Port) and Arcadis U.S. Inc. will be for a four year contract term, compensated in an amount not to exceed $5,645,000 to provide construction management services, for the Port of Los Angeles' Berths Backland Improvements (Phase 2-4) Project (Project), with an estimated total construction budget of $143,422,405. The Griffith Company was awarded a construction contract through a RFP in the amount of $105,675,310 to complete the Project, minus any contingency amounts. The Project is partially funded, in the amount of $26,664,000, under the Proposition 1B and State Trade Corridor Improvement, through the State's Department of Transportation. The Port will contribute the balance of the cost sharefor the proposed Project from its Harbor Revenue Fund. The proposed expenditure of the funds will be spread over five fiscal years, from FY 2013/14 to FY 2017/18. The Port states that any subsequent financial obligations after the current fiscal year must be approved by the Board as part ofthe Port's, annual

14 CAO File No. PAGE budgeting process. There is no impact to the City General Fund and funding for the proposed Agreement 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 proposed Agreement must be approved by the Council before it can become effective. Unless the Council takes action by disapproving a contract that is longer than three years within 60 days after submission to Council, the contract will be deemed approved. MAS:ABN:

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