BOARD MEETING DATE: October 3, 2008
AGENDA NO. 8

PROPOSAL:

Execute Contract for CEQA Analysis for Expansion and Modernization of Union Pacific Intermodal Container Transfer Facility

SYNOPSIS:

The AQMD has entered into a Memorandum of Agreement with the Intermodal Container Transfer Facility (ICTF) Joint Powers Authority (JPA) to prepare the CEQA documents for the proposed expansion and modernization of the Union Pacific Railroad ICTF in the cities of Los Angeles and Carson. The scope and schedule for preparation of the CEQA documents for the proposed project requires the AQMD to obtain the services of a consultant with goods movement experience to assist the AQMD in evaluation of potential alternatives to the proposed project. This action is to authorize the Executive Officer to execute a contract for these services with Parsons, for $150,000, with a potential adjustment of up to $100,000, if necessary to meet the final scope of the environmental analysis. Total funding for this contract will not exceed $250,000, to be paid by the AQMD and reimbursed by JPA. The JPA has earmarked a total of $2.5 million for preparation of the CEQA documents.

COMMITTEE:

Mobile Source, September 25, 2008, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Executive Officer to:

1. Recognize $250,000 from the Intermodal Container Transfer Facility JPA upon receipt, into the General Fund and appropriate the full amount from Undesignated Fund Balance to the Planning, Rule, and Area Sources FY 2008-09, Professional & Special Services Account Budget
2. Execute a level of effort contract with Parsons Transportation Group (Parsons), in an amount not to exceed $150,000 to develop and evaluate alternatives for the ICTF modernization project.
3. Adjust contract award, up to an additional amount of $100,000, as necessary to meet the fully developed scope of environmental analysis.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Intermodal Container Transfer Facility (ICTF) was developed in the mid-1980s pursuant to a partnership between the Port of Los Angeles (POLA), Port of Long Beach (POLB) and the Union Pacific Railroad Company. The Union Pacific Railroad ICTF handles container cargo from the Ports, and facilitates rail distribution of cargo throughout the region and the United States. The ICTF Joint Powers Authority (JPA) is a public entity created in 1983 to oversee the development and operation of the ICTF. This entity is administered by a governing board currently composed of two representatives from the Port of Long Beach and two representatives from the Port of Los Angeles.

The Union Pacific Railroad ICTF currently handles an annual average of 725,000 cargo containers. On February 12, 2008, the JPA deemed Union Pacific’s project application complete. The project seeks to more than double container handling capacity to 1,500,000 containers annually, and to modernize the ICTF.

On May 9, 2008, the AQMD approved a Memorandum of Agreement (MOA) with the JPA, to prepare the California Environmental Quality Act (CEQA) documents for the proposed modernization of the Union Pacific Railroad ICTF. Under the MOA, the JPA will be the lead agency for the proposed project. On June 24, 2008, the JPA and Union Pacific Railroad approved a Reimbursable Work Order (RWO) for preparation of all CEQA documents on the proposed modernization of ICTF. The JPA has allocated up to $2.5 million of available funding to the AQMD for preparation of the CEQA documents.

The schedule for completion of the CEQA documents requires the Draft Environmental Impact Report (DEIR) to be completed by early 2009, and the Final Environmental Impact Report (FEIR) by the fall of 2009. Due to the expedited schedule to prepare the CEQA documents, AQMD staff will need the assistance of consultants. The MOA includes specific provisions that permit the AQMD to subcontract out portions of the EIR with their concurrence in selecting consultants. AQMD staff will administer the contracts, meet with the JPA to refine the scope of the project, and meet with each subcontractor to provide direction on specific tasks.

At the July 2008 Board meeting, the Board authorized the Executive Officer to recognize $750,000 from the JPA in order to retain the services of three consultants to help prepare the required CEQA documents. Contracts for these three consultants have been let, or will be let shortly.
 

Proposal

Sole Source Contract with Parsons Transportation Group (Parsons), 100 West Walnut Street, Pasadena, CA 91124

AQMD staff recommends that the Board approve a sole source contract not to exceed $150,000 with Parsons, in order to analyze current on-dock rail capacities, compare on-dock rail capacities at the Ports of Los Angeles (POLA) and Long Beach (POLB) to current and future demand, evaluate baseline truck drayage operations, evaluate alternatives to truck drayage, evaluate maglev transport, and present all findings in a final report.

The JPA has recommended the use of Parsons to help develop and evaluate CEQA alternatives to the proposed ICTF project due to their extensive experience with evaluation of transportation systems serving the POLA and POLB, that can reduce emissions caused by operations at the ICTF. Parsons has extensive experience working with the POLA and POLB.

Because the scope of environmental analysis under this contract is still under development, it may be necessary to augment the contract to adequately analyze potential environmental impacts. As a result, the AQMD staff is also requesting the Board to authorize the Executive Officer the authority to adjust the contract award, in an amount up to $100,000, in order to facilitate completion of the CEQA documents.
 

Sole Source Justification

Section VIII.B.2. of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is being made under provision B.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD.

Special circumstances exist that require the AQMD staff to immediately begin the preparation of the CEQA documents for the ICTF modernization project. The timeframes for completion of the work are critical and would be significantly hampered if the contracting process is delayed by soliciting proposals in a lengthy RFP process. Any delay in the preparation and completion of the NOP and DEIR would cause delays in making the documents available for public review and comment, which is a key element in seeking greater public involvement and input into the proposed modernization project. In order to expedite the entire CEQA process, the AQMD is pre-selecting Parsons, a consultant which is known as having prior experience in evaluating container transportation systems in and around the ports, and expertise in evaluating alternatives to traditional transportation systems, and preparing documents required for this proposed project.
 

Resource Impacts

The total cost of this contract is estimated to be $250,000, which includes a potential increase of up to $100,000 for the contract. No funding will be required by the AQMD. The funding for the preparation of the CEQA documents will come from the JPA. The JPA has estimated that preparation of the CEQA documents could cost up to $2.5 million. The AQMD will continue to bill the JPA monthly for reimbursement of funds required to prepare the CEQA documents. In accordance with the MOA between the AQMD and JPA, the JPA will reimburse the AQMD for expenditures made on a time-and-materials basis for AQMD administrative services and the subconsultant services that are outlined in this board letter.