2. Approve the subject Agreement with Lloyd s Register Quality Assurance for a term of three years and a total amount not-to-exceed $25,000; and
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1 DATE: JULY 5, 2007 FROM: ENVIRONMENTAL MANAGEMENT DIVISION SUMMARY: Staff is recommending approval of an agreement with Lloyds Register Quality Assurance, Inc., to provide ISO certification of the Port s Environmental Management System (EMS). The EMS was implemented at the Port of Los Angeles, Construction and Maintenance (C & M) Division in January The C & M EMS has provided a structured approach to improve environmental performance as well as operational efficiencies in day-to-day operations. The agreement would provide the Port of Los Angeles with audit, certification and surveillance services of the EMS in compliance with ISO The contract would be for a term of three years for a not-to-exceed amount of $25,000. RECOMMENDATIONS: It is recommended that the Board of Harbor Commissioners: 1. Find that in accordance with the City Charter Section 1022, work under the subject agreements can be performed more feasibly by independent consultants rather than by City employees; and 2. Approve the subject Agreement with Lloyd s Register Quality Assurance for a term of three years and a total amount not-to-exceed $25,000; and 3. Authorize the Executive Director and the Board Secretary to execute and attest to said agreement for and on behalf of the Board. DISCUSSION: 1. The Port faces significant challenges in being the trustee of a growing maritime industry and protecting the environment and surrounding communities. An Environmental Management System (EMS) is a tool that can help the Port manage this challenge. An EMS provides the Port with a structured approach for managing environmental responsibilities, making it easier to monitor and improve environmental performance, prevent pollution, and conserve energy and natural resources. This approach is consistent with the Mayor s and this Board s
2 DATE: JULY 5, 2007 PAGE 2 OF 5 commitment to environmental stewardship and consideration of our employees and the well being of the surrounding communities. The Construction and Maintenance (C & M) EMS incorporates planning activities, organization structure review, development of policies and procedures, and resource management for the benefit of the environment. Enhanced operational effectiveness and efficiency, coupled with environmental performance improvements, are compelling EMS benefits. Staff recommends obtaining certification for the C & M EMS system as 1) a proactive measure to meet Port s environmental goals, 2) to ensure compliance with legal and regulatory agencies, and 3) to better manage the impact of Port maintenance activities on the environment. 2. Pilot Program. In July 2003 the American Association of Port Authorities (AAPA) in conjunction with the U.S. Environmental Protection Agency (EPA), and the Global Environment and Technology Foundation (GETF), established a project to assist public seaports in developing an Environmental Management System. The project was tailored to the unique characteristics of the port industry and is based on the successful EPA-supported program for other public entities. Eleven ports and related organizations were selected to participate in the two-year EMS implementation and receive training and technical assistance. Participants were selected through a highly competitive application that assessed top management involvement, organizational support, and the ability to share experiences with peers, similar entities and affiliated organizations and were as follows: MARAD, Fort Eustis, VA Port Everglades, Ft. Lauderdale, FL Port of Corpus Christi Authority Portland District Corps of Engineers The Port Authority of New York & New Jersey Virginia Port Authority Port of Houston Authority Port of Los Angeles Port of New Orleans Port of Portland Port of Vancouver 3. EMS System at POLA. The EMS was implemented at the Port of Los Angeles, Construction and Maintenance Division in January The system has provided C & M with a systematic way to review and improve operations for better organizational performance. By incorporating environmental considerations into the decision making structure, the EMS introduces employees to their environmental responsibilities and more efficient business processes. C&M experience has proven that investment in an EMS saves money, provides regulatory incentives, and improves management confidence in handling environmental issues.
3 DATE: JULY 5, 2007 PAGE 3 OF 5 4. ISO International Organization for Standardization (ISO) is the world s largest developer of standards. It is a network of the national standards institutes of 157 countries. The ISO provides companies and government agencies with a proactive approach to environmental management by integrating environmental considerations into management and decision-making structures in a systematic and organized way. The Port of Los Angeles is committed to comply with regulations, the prevention of pollution, and continual improvement. Certification will advance the Port s efforts to better manage the impact of activities on the environment and to demonstrate the Port s commitment to sound environmental management. 5. EMS Benefits. The Port of Los Angeles will be the first major western seaport to achieve ISO Certification. The only other port to achieve this certification is the Port of Houston. The EMS will help: Reduce costs and improve efficiency Manage environmental liability Establish regular reviews and audits as a condition of certification renewals Improve emergency response capability Increase staff awareness, competency, involvement and morale Establish common management framework to integrate into other port objectives such as safety, security, operational efficiency and community relations. Enhance credibility and community interaction Demonstrate leadership in environmental protection 6. Consultant Selection. ISO certification must be conducted by an independent third party that is registered by ISO. Qualifications from 6 firms were considered, and three firms were interviewed. Quotes from the three firms were received in November 2006 (see Transmittal 2). The selection committee consisted of Joannie Mukai from C&M, Gabriel Silva and Christopher Foley from Environmental Management Division, and Shelly Debartaledge and Bria Ball from Shaw Consulting (the Port s EMS development consultant). 7. Contract Requirements: Throughout the term of the agreement, Lloyd s Register Quality Assurance will maintain compliance with the City s contracting requirements. This agreement is in conformance with both the City of Los Angeles Service Contract Worker Retention and Living Wage Ordinance. An SBE goal was not established for this contract due to the lack of registered ISO certification firms with this status.
4 DATE: JULY 5, 2007 PAGE 4 OF 5 ENVIRONMENTAL ASSESSMENT: The Director of Environmental Management has determined that the Board action on the proposed Agreements is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(d) of the Los Angeles City CEQA Guidelines. FINANCIAL IMPACT: Approval of the three-year Agreement discussed herein would authorize the total not-to-exceed amount of $25,000 for audit, certification and surveillance services of the EMS in compliance with ISO It is anticipated that funds under this Agreement will be expended as follows: Fiscal Year Amount 2007/2008 $15, /2009 $ 5, /2010 $ 5,000 Total $25,000 Funds for FY 2007/2008 in the amount of $15,000 have been budgeted in Account 54260, Center No. 330 (Environmental Management Division), Program No. 632 (Environmental Management System). Funding totaling $10,000 to cover the remainder of this Agreement will be requested to be budgeted in future fiscal years. If in any subsequent fiscal year funds are not appropriated by the Board for the work required by the Agreement, the Agreement shall be terminated. However, such termination shall not relieve the parties of liability for any obligation previously incurred. CITY ATTORNEY: The City Attorney has reviewed the proposed Agreement and approved it as to form.
5 DATE: JULY 5, 2007 PAGE 5 OF 5 TRANSMITTALS: 1. Agreement between the City of Los Angeles and Lloyd s Register Quality Assurance 2. Consultant Selection Summar RALPH G. APPY, Ph.D. Director of Environmental Management MICHAEL R. CHRISTENSEN Deputy Executive Director APPROVED: GERALDINE KNATZ, Ph.D. Executive Director RGA:PJ:CJF:KR:gde:gs ADP# File: Y:\_Board Reports\E M S\EMS 2007\FINAL-EMS Certification.DOC Last Updated: 7/2/ :32 AM
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