Council approves one-year extension and $4 million limit for Evergreen Terminal construction management contract

The Los Angeles City Council on Dec. 12 approved extending a construction-management contract tied to the Evergreen Terminal project and authorized an expenditure not to exceed $4,000,000 from the Harbor Revenue Fund to complete work.

Councilmember Nate Holden called for staff to explain why the contract needed a one-year extension and how change orders increased the original contract amount. Port staff responded that design difficulties, changes to the gate entrance scheme intended to reduce truck congestion and heavy rains during construction contributed to delays and extra costs. A port representative estimated that Evergreen would cover "about $8 to $10 million" of related change-order costs but did not provide a written breakdown in the committee report; the port representative said Evergreen pays permit fees and would contribute toward construction costs.

Holden pressed the Port of Los Angeles about the public—s right to know the specifics of the cost increases and asked what assurances existed that one additional year would be sufficient. Councilmember Deniz Zine asked about the Harbor Revenue Fund—s financial health; port staff said the fund was "very solid" and reported record cargo increases and no negative effect from Sept. 11.

Port staff said the contract extension responded to gate design changes working with Evergreen to reduce truck congestion. Staff also cited weather delays during the previous rainy season as a factor slowing construction.

The measure passed on a recorded roll-call vote (12-0). The roll call recorded: Eric Garcetti; Janice Hahn; Nate Holden; Tom LaBonge; Cindy Miscikowski; Nick Pacheco; Janice Perry; Ed Reyes; Mark Ridley-Thomas; Jack Weiss; Deniz Zine; and Alex Padilla.