berths 145-147 wharf improvements - The Port of Los Angeles

I A( y , 

THE PORT 

OF LOS ANGELES 

Executive Director's 

Report to the 

Board of Harbor Commissioners 

DATE: SEPTEMBER 25,2008 

FROM: 

CONSTRUCTION DIVISION 

SUBJECT: RESOLUTION NO. - AWARD OF CONSTRUCTION CONTRACT 

CONTRACTOR: MANSON CONSTRUCTION COMPANY 

BERTHS 145-147 WHARF IMPROVEMENTS - TRAPAC TERMINAL 

SPECIFICATION NO. 2605 

SUMMARY: 

This contract will upgrade the wharf at Berths 145-146 from 50 foot to 100 foot gauge 

crane rail and will replace the unserviceable timber wharf at Berth 147 with a new 

concrete wharf with 100 foot gauge crane rail as part of the TraPac Terminal 

development program. The new wharves will be equipped with Alternative Maritime 

Power (AMP) facilities. The adjacent wharf at Berth 144 and the Berths 136-139 wharf 

will also be retrofitted with AMP facilities. The lowest responsive bidder is Manson 

Construction Company located in San Pedro, California. The contract amount plus a 5% 

contingency is $102,798,040, and the contract duration is 737 calendar days. This 

contract is subject to the conditions of a Project Labor Agreement (PLA). 

RECOMMENDATION: 

It is recommended that the Board of Harbor Commissioners: 

1. Find and determine that a PLA among the City of Los Angeles Harbor 

Department (Harbor Department), the Los Angeles/Orange Counties Building 

and Construction Trades Council, and contractors working on the project, is 

appropriate and shall be issued for the Berths 145-147 Wharf Improvements 

project, in that the PLA will promote Labor stability and advance the City's 

interest in lowest cost efficiency, quality, safety, and timeliness; 

2. Adopt Resolution No. to award the above-mentioned contract for 

Item Nos. 1 through 63 of the proposal schedule to Manson Construction 

Company in the amount of $97,902,892; that a 5% contingency not included in 

the original contract amount be applied for a total authorized amount of 

$102,798,040; and that payment be authorized from the Construction Account. 

The contract time for performance of the work will be 737 calendar days from the 

Notice to Proceed; 

3. Authorize the Executive Director to execute and the Board Secretary to attest to 

this contract for and on behalf of the Board; and

DATE: SEPTEMBER 25,2008 PAGE 2 OF 5 





4. In accordance with City Charter 655 (g), delegate and authorize the Executive 

Director to adjust final bid quantities and accept the construction contract upon its 

completion. 

DISCUSSION: 

1. The project consists of timber wharf and mooring dolphin demolition, concrete wharf 

demolition, longshore toilet building demolition with lead and asbestos abatement, 

slope dredging, steel sheet pile installation, rock placement, landside grading, 

existing wharf modification including concrete pile driving and wharf deck 

construction, new concrete wharf construction, new longshore toilet building 

construction, AMP installation at Berth 144, Berths 136-139, and Berths 145-147, 

concrete pile repair and replacement at Berth 143. 

2. This is the first major construction contract under the Clean Air Action Plan 

incorporating stringent air quality mitigation measures during construction required 

by the Port's new Construction Emissions Policy adopted by the Board on February 

21, 2008, and the first major wharf construction project at the Port of Los Angeles in 

6 years. 

3. The Notice Inviting Bids was advertised February 19, 2008, on the Port of Los 

Angeles Website, the Chinese Daily News, Eastside Journal, Dodge Construction 

"Green Sheet", Hoy, and the Metropolitan News Company. 

4. As authorized by the Executive Director on February 19, 2008, the Chief Harbor 

Engineer received five bids for the subject contract on August 14, 2008. Bids were 

received from Manson Construction Company, Dutra Construction Co., Inc., Traylor 

Pacific, General Construction Co., and FCI Constructors, Inc., in the amounts shown 

on the Analysis of Bids, attached as Transmittal NO.1. Manson Construction 

Company was determined to be the apparent low bidder at $97,902,892. A 5% 

contingency is allocated for this project for a total authorized amount of 

$102,798,040. This 5% contingency was determined based on a qualitative review 

of project specific risks including schedule constraints and potential unforeseen 

conditions that may arise during construction. 

5. Construction staff has verified Manson Construction Company's state license and 

project references. In conformance with Section 10.8.4 of Ordinance No. 143429, 

certification is hereby made that Manson Construction Company has executed and 

filed an Affirmative Action Plan with their bid. A notification letter has been sent to 

the City Office of Contract Compliance as required in the ordinance.






6. This contract is consistent with State of California Prevailing Wage provisions. 

7. The purpose of a PLA for the referenced project is to promote efficiency of 

construction operations , increase quality, and provide for orderly settlement of labor 

disputes and grievances without strikes or lockouts, thereby promoting the public 

interest in assuring the timely and economical completion of the project with no 

interruptions to ongoing terminal operations. 

8. Worker safety is a major concern while working within an operating terminal. The 

work within the terminal is in localized areas surrounded by ongoing terminal 

operations. It is imperative to have well-trained workers who have experience 

working in this type of environment in order to reduce the risk of serious injury to 

both construction and terminal workers. The PLA will provide qualified, well-trained 

construction workers who have experience in performing work within an operating 

container terminal. This will reduce the risk of interference of terminal operations 

due to construction delays and the potential for worker injury. 

9. The PLA will also provide for the preferential recruitment and placement of local 

workers residing within the City of Los Angeles and surrounding areas near the Port. 

Additionally, this provides employment opportunities for disadvantaged workers 

identified as having a household income below 50% of the median, being homeless, 

receiving public assistance, or having a history of involvement with the criminal 

justice system. The PLA for this contract requires 30% local hires plus 10% 

disadvantaged workers . 

ENVIRONMENTAL ASSESSMENT: 

The proposed action is the award of a contract to Manson Construction Company to 

construct the Berths 145-147 Wharf Improvements Project. The wharf construction 

project was included in a larger terminal improvements project that was assessed under 

the Berths 136-147 [TraPac] Container Terminal EIR (ADP: 030127-020) certified by the 

Board of Harbor Commissioners on December 6, 2007. As such, the Director of 

Environmental Management has determined that the proposed action is exempt from 

the requirements of the California Environmental Quality Act (CEQA) under Article II, 

Section 2(i) of the Los Angeles City CEQA guidelines.

DATE: SEPTEMBER 25, 2008 PAGE 4 OF 5 

SUB..IECT: RESOLUTION NO. - AWARD OF CONSTRUCTION CONTRACT 




FINANCIAL IMPACT: 

Funds for these improvements have been budgeted in Fiscal Year 2008/2009 Capital 

Budget Account No. 54510, Center NO.1103, Program No. 000. It is anticipated that the 

funds for this contract will be expended as follows: 

Fiscal Year 2008/2009 $ 29,500,000 

Fiscal Year 2009/2010 $ 52,500,000 

Fiscal Year 2010/2011 $ 20,798,040 

Total $102,798,040 

Although the Contractor 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 Contractor 

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 

is approved within that 60-day period. The Contractor 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. 

ECONOMIC BENEFITS: 

Spending under this wharf rehabilitation contract is estimated to support the equivalent 

of 1,272 one-year full-time equivalent jobs in the five-county region. 

CITY ATTORNEY: 

The Office of the City Attorney reviewed and approved Specification No. 2605 as to 

form on March 10, 2008.






TRANSMITTALS: 

1. Analysis of Bids 

2. Contractor and Subcontractor List 

3. Site Map 

4. Five copies of Specification No. 2605 

SHAUN SHAH ESTANI 

Chief Harbor Engineer 

Construction Division 

MIO AEL R. CHRISTENSEN 

D puty Executive Director 

APPROVED: 

GERALDINE KNATZ, Ph.D. 

Exetutive Director 

/ 

DLE:lh:lm 

2605801 

ADP NO: 020306-041

berths 145-147 wharf improvements - The Port of Los Angeles

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