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Pier 500 Marine Container Terminal Project / Alternate Project Delivery Systems / Competitive Sealed Proposal Method / Capital Improvement Projects

Council File 26-1128

Under review — the City Council has referred this to committee to decide whether the Port can use flexible contracting methods for the Pier 500 container terminal project, which would let builders offer creative solutions beyond just the lowest price.

Introduced
2026-08-13
Last changed
2026-09-11
Status
open
Expires
2028-09-11
Committee
Trade, Travel, and Tourism Committee
Initiated by
Board of Harbor Commissioners
References
Resolution No. 26-10769

Brief

The Board of Harbor Commissioners introduced a resolution authorizing an alternate project delivery method—competitive sealed proposal (CSP)—for the Pier 500 Marine Container Terminal capital improvement project. CSP allows the city to solicit and evaluate sealed bids from private developers or operators rather than using traditional public procurement. The Trade, Travel, and Tourism Committee approved the item on September 11, 2026, moving it toward full Council consideration.

Full summary

The Board of Harbor Commissioners, through Resolution No. 26-10769, is asking the City Council to pass an ordinance authorizing the Port of Los Angeles to use alternate project delivery systems and a competitive sealed proposal method for capital improvement work tied to the Pier 500 Marine Container Terminal. The resolution is grounded in Section 371 of the Los Angeles City Charter and Section 10.5 of the Los Angeles Administrative Code, which together establish the legal framework for departing from standard procurement procedures when circumstances warrant. The Port's Commission Secretary, Amber M. Klesges, submitted the request on behalf of the Board on August 13, 2026, and the file is assigned to Council District 15. The competitive sealed proposal method differs from conventional low-bid contracting by allowing the Port to evaluate offers on multiple criteria beyond price alone — including design, delivery approach, and qualifications — giving contractors more flexibility in how they structure their proposals. Alternate project delivery systems such as design-build or construction manager at-risk can compress timelines and shift risk allocation, making them attractive for complex port infrastructure projects like Pier 500. The Harbor Commission has emphasized that approval of this method carries no impact to the City's General Fund, as Port projects are self-funded through harbor revenues. On the environmental review front, the Director of Environmental Management has determined that authorizing this procurement method is administratively exempt from California Environmental Quality Act requirements under Article II, Sections 2(f) and 2(m) of the City's CEQA Guidelines. The Board asks Council to formally accept that determination alongside approving the resolution. The file was referred to the Trade, Travel, and Tourism Committee on August 14, 2026, where it currently sits pending review. No committee hearing date or vote has been recorded yet. Council approval of the resolution is a prerequisite before the Port can issue a formal solicitation under the alternate delivery framework, making this an early but necessary step in the broader Pier 500 development process. The file expires August 13, 2028.

Activity (4)

  • 2026-09-11 Trade, Travel, and Tourism Committee approved item(s) .
  • 2026-09-08 Trade, Travel, and Tourism Committee scheduled item for committee meeting on September 11, 2026.
  • 2026-08-14 Board of Harbor Commissioners document(s) referred to Trade, Travel, and Tourism Committee.
  • 2026-08-13 Document submitted by Board of Harbor Commissioners, dated August 13, 2026.

Documents (6)

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