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Council approves one-year extension and added funding for Evergreen Terminal construction management
Summary
The council approved an extension of a construction management contract for improvements at the Evergreen Terminal, including additional costs tied to design changes and weather delays; the Harbor Revenue Fund will cover up to $4 million.
The Los Angeles City Council approved a one-year extension and additional funding for the construction management contract related to gated-expansion and backland improvements at the Evergreen Terminal during its Dec. 12, 2001 meeting.
Councilmember Nate Holden called for staff to explain the reasons for the contract extension, the increase in contract costs and the guarantee that an additional year would be sufficient to complete work on the Evergreen project. Harbor staff responded that the contract extension covered construction management during a period when design difficulties required changes to gate configurations intended to reduce truck congestion. Staff also cited heavy rains that delayed construction last year.
Harbor staff told the council that Evergreen (the terminal operator) and the port share construction costs under permit requirements and that Evergreen would pay a substantial portion of change-order costs; staff estimated Evergreen’s contribution for the changes at roughly $8 million to $10 million of the total changes discussed on the record. The Council also discussed Harbor Revenue Fund capacity; Harbor staff said the fund was solid, noting month-to-month cargo increases and no evident negative impacts from the Sept. 11 attacks.
Councilmember Holden asked whether the port could contribute more to city services; port staff said the port contributes approximately $14 million per year for city services by way of stipulated payments and noted past litigation over transfers. Councilmember Holden pressed for a more itemized approach to city services and reimbursements.
The council approved the extension and funding with a roll-call vote recorded in the meeting minutes. The council report recorded the motion as an approval for an expenditure not to exceed $4,000,000 from the Harbor Revenue Fund; the action was adopted on the council floor.
Ending: Staff said they would include detailed Evergreen cost-share numbers and changes in future committee reports and that the port would provide a clearer accounting of the contributions toward the change orders.
