Board of Harbor Cindy Mlscikowski Jerilyn LOpez Mendoza Kaylynn L. Kim Douglas P. Krause Joseph R. Radisich Commissioners President VIce President

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1 THE PORT OF LOS ANGELES 425 S. Palos Verdes street Post Office Box 151 San Pedro, CA TEl/TDD 310 SEA-PORT Antonio R. Villaralgosa Mayor, City of Los Angeles Board of Harbor Cindy Mlscikowski Jerilyn LOpez Mendoza Kaylynn L. Kim Douglas P. Krause Joseph R. Radisich Commissioners President VIce President Geraldine Knatz, Ph.D. Executive Director August 9, 2010 Honorable Members of the City Council of the City of Los Angeles CD No. 15 Attention: SUBJECT: Mr. Adam Lid, City Clerk's Office CHARTER SECTION PROPOSED SECOND AMENDMENT TO PERMIT NO. 827 WITH APM TERMINALS PACIFIC, LTD. Transmitted herewith, pursuant to Charter Section 606 of the City Charter, is a copy of a Board report, assigned Resolution No , approving the Second Amendment to Permit No. 827 with APM Terminal Pacific, Ltd. Please note that the Mayor's office is waiving Executive Directive No. 4 review for this item, therefore no CAO report is attached. RECOMMENDATION: The City Council, subject to approval of the Mayor, approve the Second Amendment to Permit No. 827 with APM Terminals Pacific, Ltd., and return to the Board of Harbor Commissioners for further processing. Respectfully submitted, ~»?-~ ROSE M. DWORSHAK Commission Secretary cc: Trade, Commerce & Tourism Committee Councilwoman Hahn, encs. Councilman Rosendahl, encs. Councilman LaBonge, encs. Pamela Finley, Mayor's office, encs. Alvin Newman, GAO, encs. Christine Yee Hollis, CLA, encs. Jenny Chavez, CD 15, encs. Robert Henry, encs.

2 RECOMMENDATION APPROVED AND RESOLUTION NO ADOPTED BY THE BOARD OF HARBOR COMMISSIONERS August 5, 2010 ~m.~ SECRETARY THE PORT OF LOS ANGELES Executive Director's Report to the Boord of Harbor Commissioners DATE: FROM: SUBJECT: JULY 28, 2010 REAL ESTATE DIVISION RESOLUTION NO. /(}-fo1'1 I -PROPOSED SECOND AMENDMENT TO PERMIT NO. 827 WITH APM TERMINALS PACIFIC, ltd. SUMMARY: Permit No. 827 between the City of los Angeles Harbor Department (Harbor Department) and APM Terminals Pacific, Ltd. (APMT) grants preferential but nonexclusive use of acres at Berths on Terminal Island for container terminal operations. Permit No. 827 requires compensation to be reset every five years, with a required compensation reset due for the five-year period of August 1, 2007 through July 31, The proposed Second Amendment to Permit No. 827 would reset compensation for the five-year period of August 1, 2007 through July 31, It is proposed that compensation for August 1, 2007 through July 31, 2011 remains the same as the current compensation rates, and that on August 1, 2011, compensation rates be raised by 7.5 percent. The proposed Second Amendment also includes: 1) a credit for thirdparty business for the period of May 1, 2008 through April 30, 2011; 2) resolution of a pavement failure issue; 3) conditions for sublease consent; 4) corrections to the site map; and 5) an update to the Tenant contact information. RECOMMENDATION: It is recommended that the Board of Harbor Commissioners: 1. Approve the proposed Second Amendment to Permit No. 827 APM Terminals Pacific, Ltd; 2. Direct the Board Secretary to transmit the Second Amendment to the City Council for approval pursuant to Section 606 of the City Charter; 3. Authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment upon approval by CityCouncil; and 4. Adopt Resolution No. /O -c, 99!

3 DATE: JULY28,2010 PAGE 2 OF 4 SUBJECT: PROPOSED SECOND AMENDMENT TO PERMIT NO. 827 DISCUSSION: Permit No. 827 grants APMT use of acres of land: acres for container terminal operations, acres for intermodal rail facilities, acres for storage tracks, and 5.54 acres for truck queuing. Compensation reset negotiations were initiated in mid-2007 but have been long-lived due to several reasons, including investigation into the cause of a terminal pavement failure, the economic downturn, the Harbor Department's budget considerations, and various other business issues that delayed closing of negotiations. Current Compensation The current compensation structure under Permit No.827 has three major components: 1. Payment of Twenty-foot Equivalent Units (TEU) charges. TEU charges are set based on a sliding scale that provides discounts as higher volumes per acre are achieved. TEU charges are subject to increases in accordance with any increase in the Not Otherwise Specified (N.O.S.) cargo rate referenced in Tariff No.4. _2. Payment of a Minimum Annual Guarantee (MAG), if the total TEU charges (Item 1 above) do not exceed the MAG. The MAG is $59,891,834 per year, based upon a rate of $135, per terminal acre (441.74) per year. 3. Payment of $1,890,736 per year for intermodal rail facility compensation (IRFC) based upon $46, per rail facility acre (40.84) per year. Proposed Compensation - It is proposed that compensation under Permit No. 827 for the period of August 1, 2007 through July 31, 2011 remain the same as the current compensation rates. It is further proposed that the MAG, IRFC, and TEU charges be increased on August 1, 2011 by 7.5 percent. The proposed 7.5 percent increase during the last year of the fiveyear reset period would increase the MAG to $64,383,720, or $145, per acre and the IRFCLQ_$2,032,541, or $49, peracre. Temporarv Conditional Credit for Third-Party Business- A temporary, conditional credit for third-party business is proposed to. stimulate increased container volume at the APMT facility. The credit is proposed to be equivalent to one week's TEU charges per year (1+52), equating to a percent decrease of the applicable per TEU charge for TEUs transported by vessel cargo to or from premises by the following vessel owner/operators: CMA; CGM; Mediterranean Shipping Company (MSC); Orient Overseas Container Line (OOCL); Nippon Yusen Kabushiki Kaisha (NYK); and Hapag Lioyd. Credit shall be applied once each year at the year-end reconciliation. This credit is proposed to be retroactive to May 1, 2008, and extend through April 30, 2011.

4 DATE: JULY28,2010 PAGE 3 OF 4 SUBJECT: PROPOSED SECOND AMENDMENT TO PERMIT NO. 827 The actual credit amount cannot be calculated until throughput data for each specified vessel owner is obtained. However, based upon preliminary information, the credit is estimated to be approximately $267,830 for calendar year 2008 and $403,621 for calendar year 2009 for a two year total of $671,451 or $335,726 annually on an average basis. Repair of Pavement - The paving at the APMT facility has failed in various locations. Upon review, such failure was attributed to design deficiencies, and therefore, the Harbor Department has agreed to remedy the pavement failure. The proposed Second Amendment to Permit No. 827 defines a scope of work (Exhibit G-2) for current repaving needs and establishes a general schedule for completion of facility repaving by June 30, The repaving is currently estimated to cost $5.014 million. Further, the proposed Second Amendment establishes that the Harbor Department may make necessary repairs and maintenance in the event of pavement failures and that the Harbor Department is only responsible for failures experienced in the first 20 years of Permit No Pavement maintenance related to ordinary wear and tear, or required by scheduled maintenance and repair activities, remains the responsibility of the Tenant. COnditions on Assignment (Sublease) - Permit No. 827 provides conditions under which the Tenant may assign its interest in or sublease the Premises. We propose to amend this provision to (1) allow assignment or sublease within nine (9), instead of fifteen (15) years from the effective date; and (2) provide the conditions to be met for sublease of 50 percent or less of the Premises. Updated Premises Map- The site has been resurveyed, and the area of the premises was modified pursuant to a Harbor Department letter dated March 18, 2005 and confirmed by a letter from APMT dated February 24, It is recommended that these changes be formally included in Permit No. 827 through the proposed Second Amendment. Update Tenant Contact Information - The First Amendment to Permit No. 827 consented to a change in the Tenant's name from Maersk Pacific, Ltd. to APMT. This change requires that the person designated to receive official notices under Permit No. 827 also be changed. It is proposed that the Senior Vice President of APMT be the person designated to receive such official notices. ENVIRONMENTAL ASSESSMENT: The proposed action is an amendment to (1) reset compensation rates with APMT under Permit No. 827, (2) address pavement repairs in various locations due to design deficiencies, and (3) provide conditions for"sublease consent. 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(f) and Article Ill Class 1 (3) of the-los Angeles City CEQA Guidelines.

5 DATE: JULY 28, 2010 PAGE 40F 4 SUBJECT: PROPOSED SECOND AMENDMENT TO PERMIT NO. 827 ECONOMIC BENEFITS: This Board action will have no direct employment effect in the five-county region. FINANCIAL IMPACT: The financial impact of the proposed Second Amendment is threefold: 1. In terms of compensation under Permit No. 827 for the five-year period preceding August 1, 2011, there will be no change to APMT rates, and thus, no financial impact. Beginning on August 1, 2011, compensation rates for TEU, MAG, and IRFC will all increase by 7.5 percent over current levels. 2. The retroactive third-party business incentive credit is estimated at $267,830 and $403,621 during Calendar Years 2008 and 2009, respectively, for a cumulative twoyear total of $671,451. On average, this incentive credit is expected to be $335,726 per year through April 30, The pavement repairs will be entirely borne-by the Harbor Department at an estimated total cost of $5.014 million. Operating and maintenance costs associated with the pavement subsequent to completion will be borne by APMT. CITY ATTORNEY: The proposed Second Amendment has been approved as to form by the Office of the City Attorney. TRANSMITTAL: 1. Second A dment Director FIS Approval:~nitials). ~rt/~t~~ Deputy Executive Director G RALDINE KN~ Executive Director MJG:BG:KC:raw Author: K. Caughlin BL348raw APMT 2"d Amendment

6 SECOND AMENDMENT TO PERMIT NO. 827 BETWEEN THE CITY OF LOS ANGELES AND APM TERMINALS PACIFIC LTD. PERMIT NO. 827 between THE CITY OF LOS ANGELES, a municipal corporation ("City"), acting by and through its Board of Harbor Commissioners ("Board'), and APM TERMINALS PACIFIC LTD., formerly known as MAERSK PACIFIC, LTD., (''Tenant"), is hereby amended a second time as follows: WHEREAS, compensation under the Permit is subject to adjustment under Section 3(h) of the Permit and Section 607 of City's Charter; and WHEREAS, City wishes to undertake improvements of certain areas of the Permit premises, and Tenant wishes to receive such improvements; and WHEREAS, City and Tenant mutually desire to make other necessary and beneficial modifications and amendments to the Permit; NOW, THEREFORE, the Permit is amended as follows: 1. Section 1 (a), Effective Date and Term, is hereby amended to add the following: "The Effective Date of the Second Amendment is the date that it is executed by the Executive Director following approval by the Los Angeles City Council. The terms of this Second Amendment shall be deemed operative as of August 1, 2007." 2. Section 2, Premises. The copy of the Chief Harbor Engineer's drawing. that is presently attached to Permit No. 827 as Exhibit "A" is deleted and the drawing attached hereto as Exhibit "A-1" is substituted in its place. For purposes of clarity, on the effective date of this Second Amendment, the area of the premises is acres, and the MAG (as defined in Section 3(e) of the Permit) is $135,582 per acre of premises. 3. Section 3, Compensation, is hereby amended by adding a subsection (q), which states as follows: "3(q) TEU Rate, MAG and IRF Compensation Before and After August 1, Notwithstanding the provisions of Section 3(d)(1), 3(e)(3), 3(f) and 3(h) of this Permit, commencing as of August 1, 2007 and terminating on July 31, 2011, there shall be no increase in the TEU Rates, per acre MAG or per acre IRF Compensation as detailed on the schedule attached hereto as Exhibit "B-1." 1

7 "Commencing on August 1, 2011, the TEU Rates, per acre IRF Compensation and per acre MAG adjustments shall be increased 7.5% as detailed on the schedule attached hereto as Exhibit "B-2." 4. A new Section 3(d)(6) is hereby added, which states: "3(d)(6) Temporary Conditional Credit for Third-Party Business. Commencing on May 1, 2008 and terminating on April 30, 2011, Tenant shall receive a conditional1.923% credit (the equivalent of 1/52) applicable to the TEU charges otherwise due and owing to City pursuant to Section 3( d) of this Permit on TEUs which were caused to be transported to or from the Premises by the following vessel owner/operators known as: CMA CGM and MSC (Mediterranean Shipping Company S.A.), Orient Overseas Container Line, Nippon Yusen Kabushiki Kaisha and Hapag-Lioyd AG. The eligibility of TEUs to receive such credit shall be within the sole and absolute discretion of Executive Director, and confirmed by bills of lading or other transportation documents provided by Tenant which identify such TEUs. Within fifteen (15) days following the end of each compensation year that follows the effective date of this Second Amendment (and, for compensation years to which this temporary conditional credit applies which precede the effective date of this Second Amendment, within fifteen (15) days following such effective date), Tenant shall provide to City a written list, signed and certified as true and correct by an officer of Tenant authorized to contractually bind Tenant, setting forth the container number, vessel arrival date, vessel name, and vessel/owner operator applicable to each container identified on such list. Such credit shall be rendered by City in connection with the reconciliation at the end of each compensation year that occurs pursuant to Section 3(d)(3). "Tenant acknowledges its obligation, in any and all events, to pay City the amount of money represented by the applicable MAG in each and every compensation year under this Permit or any holdover. Tenant further acknowledges that the amount of money represented by the applicable MAG is not subject to reduction through application of offsets, credits or discounts, including but not limited to those credits and discounts set forth in this Second Amendment, and that such Second Amendment neither waives nor alters Tenant's obligation to pay and City's right to receive the full amount of the applicable MAG in each and every compensation year. As such, as a first condition, Tenant shall be entitled to take the credits and discounts authorized by Section 3(d)(6) and otherwise, only to the extent that its actual payments to City, once such credits and discounts have been applied, exceed the MAG for the applicable compensation year. For purposes of determining Tenant's entitlement to any credits or discounts, City, in its sole and absolute discretion, shall determine whether Tenant's actual payments to City, once such credits and discounts have been applied, have exceeded the applicable MAG and, if so. the monetary amount of such excess. Additionally, as a second condition, the credit, if any, arising under this Section 3(d)(6) must be applied to the compensation year in which it accrues. If, through application of the foregoing condition or any other reason, such credit cannot be applied to the compensation year in which it 2

8 accrued, it shall be irrevocably cancelled and forfeited. "The terms of this Section 3(d)(6) and the Second Amendment that implements it shall neither be deemed nor treated as a limitation or waiver of any terms or obligations set forth in this Permit, or any rights or remedies of City provided in this Permit, in equity, or at law." 5. Section 12(1), Notices, is amended by deleting the phrase "and notice to Tenant shall be addressed to it at the address set forth above" and inserting in its place the phrase "and notice to the Tenant shall be addressed to Senior Vice President, APM Terminals Pacific Ltd., 2500 Navy Way, Building 100, Terminal Island, CA " 6. Section 6(c), City Improvements, is hereby amended to add the following: City may make any necessary repair or replacement of the pavement in the event of any failure of such pavement during the first twenty (20) years of the term of this Permit. City shall not be responsible for nor required to make any repair or replacement made necessary by ordinary wear and tear, or required by normal maintenance and repair activities. A "Pavement Failure" is defined as a pavement condition of rating level 1 to 3 in the Pavement Elevation Rating System contained in Exhibit "G-1." Exhibit "G-1,"Pavement Maintenance Specification, attached to this Amendment is hereby added to and incorporated by reference into Permit No. 827 as supplementing, and not replacing, Exhibit "G." Whether a "Pavement Failure" exists shall be determined by the Executive Director in his or her sole and absolute discretion. "Upon the effective date of this Second Amendment, City shall immediately commence completion of project design, bid and award of a construction contract, and construction activities, based on the scope of work referenced in Exhibit "G-2". Prior to commencement of construction, City and Tenant shall agree on a phasing schedule that will take into consideration the need to maintain terminal operations during construction. City shall proceed diligently to complete the work by June 30, 2011, however, the parties recognize that the completion date will be dependent on the permittee's preferences with respect to maintaining terminal operations. Tenant acknowledges and agrees that it has reviewed and has approved attached Exhibit "G-2" without objections." 7. Section 9(a), Maintenance and Restoration, is hereby amended to read: "Maintenance. City shall institute a harbor-wide maintenance program outlining all of required minimum maintenance and documentation requirements that, when published, will provide specific criteria as to standards of maintenance for specific items referenced in this Section. Tenant shall fully comply with such maintenance program." 8. Section 11 (b), Conditions on Assignment, is hereby amended as follows: 3

9 a. In the first sentence, delete "fifteen ( 15)" and replace with "nine (9)". b.. The following phrase shall be added following the semicolon at the end of Section 11 (b)(1 ): "or for a proposed sublease of a portion of 50%. or less of the premises, the proposed sublessee shall demonstrate to the satisfaction of City that its financial strength and net worth are of comparable risk to that of Tenant at the time of the proposed sublease;" c. The following phrase shall be added following the semicolon at the end of Section 11(b)(2): "or for a proposed sublease of a portion of 50% or less of the premises, the proposed sublessee has sustained a container throughput volume in average TEUs per acre for the most recent three (3) year period which is comparable to Tenant's average TEUs per acre for the same three (3) year period immediately prior to the proposed sublease;" Except as amended herein; all remaining ternis and condition~ of Permit. No. 8il and the written Guaranty of Permit No. 827 remain in full force and effect. In the event of any conflict between the terms of Permit No. 827 and this Second Amendment, the provisions of this Second Amendment shall prevail IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Permit No. 827 between the City of Los Angeles and APM Terminals Pacific Ltd. on the dates to the left of their respective signatures. THE CITY OF LOS ANGELES, by its Board of Harbor Commissioners Dated:--,----~ 2010 By----: ::-,---- Executive Director Attest ~--~ Secretary. Dated: -= ::5-+/_,s'--~- 201 o 7 APM TERMINALS PACIFIC LTD. (formerly known as MAERSK PACIFIC, LTD. ~c By ~!V & C'.tl (Print/type name and title) A~~~tJ:y_-q!if'~s"'"- o,.,j" ~ (Print/type name and title) 4

10 SYO/JMC/dls 7/28/10 5

11 BER1ll404 BER1ll403 BERTH402 BERTH401 = PHAsE I NORTH PARCEL 1 8, SF ACRES 0 IH PHASE2 PMCEL2 6,077,405 SF ACRES INTERMODAL PARCEL 1C 1,778,631 SF.o10.84ACRES 1,o56.044SF 24.24ACRES PHASE I SOUTH PARCEL1B 4,564,566 SF ACRES!El 0 Parcel# 1 1A C 3 Label SF Contah1er Yard Phase 1 North 8,492,012 NA 87,889 Phase 1 South 4,584,566 Phase ,405 19,241,872 lntermodal Rail Facility lntermodal 1,778,831 Storage Tracts Storage Tracks 1,056,044 AC EXHIBIT A-1 3/15/2010

12 APM Rate Schedule Current Rates Effective Effective Listed Calendar Calendar Efficiency Bracket In Permit 1/1/2004 7/ ~ Page 1 of2 EXHIBIT B-1

13 ~ 7400 APM Rate Schedule Current Rates Effective Effective Listed Calendar Calendar Efficiency Bracket In Permit 1/1/2004 7/1/ ' c MAG/Acre 123, , ,582 lntermodal $/Acre 42,000 44,075 46,296 Page 2 of2 EXHIBIT 8-1

14 PIER 400 PRICING RATES EFFECTIVE BEGINNING AUGUST 1, 2011 TEU PER ACRE RATE SCHEDULE (SLIDING EFFICIENCY SCALE) Efficiency Rate Efficiency Rate Efficiency Rate Bracket perteu Bracket perteu Bracket perteu i) Sliding Scale < 2, ,000 5, ,600 7, ,500 2, ,100 5, ,700 7, ,600 2, ,200 5, ,800 7, ,700 2, ,300 5, ,900 7, ,800 2, ,400 5, ,000 8, ,900 2, ,500 5, ,100 8, ,000 3, ,600 5, ,200 8, ,100 3, ,700 5, ,300 8, ,200 3, ,800 5, ,400 8, ,300 3, ,900 5, ,500 8, ,400 3, ,000 6, ,600 8, ,500 3, ,100 6, ,700 8, ,600 3, ,200 6, ,800 8, ,700 3, ,300 6, ,900 8, ,800 3, ,400 6, ,000 9, ,900 3, ,500 6, ,100 9, ,000 4, ,600 6, ,200 9, ,100 4, ,700 6, ,300 9, ,200 4, ,800 6, ,400 9, ,300 4, ,900 6, ,500 9, ,400 4, ,000 7, ,600 9, ,500 4, ,100 7, ,700 9, ,600 4, ,200 7, ,800 9, ,700 4, ,300 7, ,900 9, ,800 4, ,400 7, ,999 > ,900 4, ,500 7, ii) MAG per Acre (3) 145,751. iii) lntermodal Rate per Acre 49,768. NOTES: (1) SINGLE TEU RATE APPLIES TO ALL CONTAINERS, INBOUND OR OUTBOUND, LOADED OR EMPTY, AND INCLUDES WHARFAGE, DOCKAGE, STORAGE AND DEMURRAGE. (2) COST PER TEU BASED ON EFFICIENCY PER ACRE, NOT INCLUDING THE INTERMODAL AREA. EFFICIENCY BRACKETS ARE IN TEUS PER ACRE PER ANNUM. EXHIBIT B-2

15 THE PORT OF LOS ANGELES Pavement Maintenance Specification Tenant is responsible for the maintenance of asphalt concrete pavement. In order to perform the necessary maintenance, tenant shall conduct an evaluation of pavement condition as well as the assessment of drainage conditions per the following: Pavement condition and evaluation: The condition of the terminal pavement shall be evaluated a minimum of once per year. This evaluation will help determine the types and causes of pavement distresses and the evaluation and selection of cost-effective repairs This evaluation shall correspond with the simple pavement evaluation system shown in Table I. This system involves rating the condition of the pavement on a scale of I to 10. Pavement maintenance and treatment measures should be implemented based.on the condition and rating of the pavement. These are shown in Table LA pavement condition graph is shown in Figure 1 for your reference. Table 1. Pavement Evaluation Rating System General Conditions/ Rating Condition Visible Distress Treatment Measures 10 Excellent None New construction 9 Excellent None Recent overlay. like new. No longitudinal cracks except reflection of paving joints. Occasional transverse cracks, widely spaced (40' or greater). All Recent seaicoat or new cold cracks sealed or tight (open less than mix. Uttie or no maintenance 8 Very Good 1/4"). required. Very slight.or no raveling, surface shows some traffic wear. Longitudinal cracks.(open 1/4") due to reflectipn or paving joints. Transverse cracks (open 1/4") spaced 10' or more apart, little or slight crack raveling. No patching or very few First signs of aging. Maintain 7 Good patches in excellent condition. with routine crack fillir}g': C:\Documents and Settings\boboc.LAHD\Local Settings\ Temporary Internet Files\Content0utlook\905DV9ZZ\Pavement Maintenance Specification doc EXHIBIT G-1

16 Table 1. Pavement Evaluation Rating System Slight raveling (loss of fines) and traffic wear. Longitudinal cracks (open 1/4" ~ 112"), some spaced less than 10'. First sign of block ~eking. Sight to Shows signs of aging. Sound moderate flushing or polishing. Occasional patching structural condition. Could extend Good in good condition. life with sealcoat. Moderate to severe raveling (loss of fine and coarse aggregate). Longitudinal and transverse cracks (open 1/2") show first signs of slight raveling and secondary cracks. First signs of longitudinal cracks Surface aging. Sound structural near pavement edge. Block cracking up to 50% of conditi.on. Needs sealcoat or thin surface. Extensive to severe flushing or polishing. non-structural over1ay (less than Fair Some patching or edge wedging in good condition. 2"). Severe surface raveling. Multiple longitudinal and transverse cracking with slight raveling. Longitudinal cracking in wheel path. Block ciacking (over.50% of Significant aging and first signs of surface). Patching in fair condition. Slight rutting or need for strengthening. Would Fair distortions ( 1/2" deep or less). benefit from a structural overlay. Closely spaced longitudinal and transverse cracks often showing raveling and crack erosion. Severe block cracking. Some alligator cracking (less than Needs patching and repair prior 25% of surface). Patches in fair to poor condition. to major overlay. Milling and Moderate rutting or distortion (1" or 2" deep). removal of deterioration extends Poor Occasional potholes. the life of overlay. Severe deterioration. Needs Alligator Cracking (over 25% of surface), Severe reconstruction with extensive distortions (Over 2" deep), extensive patching in base repair. Pulverization of old Very Poor poor condition, potholes. pavement is effective. Severe distress with extensive loss of Surface Failed integrity. Failed. Needs total reconstruction z HATING!0 0 Exc«<lent >= Ci f<aling 6 z 0 Good v,... RA1lt4C. 4 ;]i fair w > ~AilNG Z ~ Poor PAVEMENT AGE RATINGS ARE RELATED TO NEEDED MAINTENANCE OR REPAIR Rating 9 & 1~- No malnten<mce required ~=-~~~-.!..,_~~~~-~~alnt~~c: Ratlnj12. Routine m3intena!~ u;u:l:~aling ao.~ minor pat~~~ _Rati"g S &6 Rating 1 & 2 co'""'""==ru00<d00'c." Figure 1. Pavement Condition Graph Assessing drainage conditions: Moisture and poor pavement drainage are significant factors in pavement deterioration. Assessment of drainage conditions during pavement rating is required. Report to the Engineering Division drainage issues or changes in surface grade. C:\Documents and Settings\boboc.LAHD\Local Settings\Temporary Internet Files\Content.Outlook\905DV9ZZ\Pavement Maintenance Specification doc

17 SCOPE OF WORK PROJECT TITLE: B Row 1 & 2 Runway Pavement Replacement SPEC. NO: 2714 JOB NO: !woRK ORDER NO: COMPLETED BY: Robel Afewerki REVIEWED BY: DATE: 03/16/10 TiHEPORT o ~Q S AHGEIU Area 1 Area 6 Saw cuts and remove AC pavement. Saw cuts and remove AC pavement. Remove CMB and compaction Remove CMB and compaction Dowel and place rebar Dowel and place rebar Place concrete and let cure Place concrete and let cure Striping Striping Area 2 Area 3 Area 4 Saw cuts and remove AC pavement. Remove CMB and compaction Dowel and place rebar Place concrete and let cure Striping Saw cuts and remove AC pavement. Remove CM B and compaction Dowel and place rebar Place concrete and let cure Striping Saw cuts and remove AC pavement. Remove CMB and compaction Dowel and place rebar Place concrete and Jet cure Striping Area 7 Area 8 Area 9 Saw cuts and remove AC pavement. Remove CM B and compaction Dowel and place rebar Place concrete and let cure Striping sa w cuts and remove AC pavement. Remove CM Band compaction Dowel and place rebar Place concrete and let cure Striping Saw cuts and remove AC pavement. Remove- CMB and comp.action Dowel and place rebar Place concrete and let cure Striping Area 5 Saw cuts and remove AC pavement. Remove CM B and compaction Dowel and place rebar Place concrete and let cure EXHIBIT G-2 Striping

18 REMOVEr AC PAVEMENT, 5" CMB & REPIACC APPROX 274,050 SF WI NEW RIENFORCED PCC ~AVE},AEf':IT AT ROW OOQA-.100A & ROW9000~1000 K J H G..., :. LEGEND REPAIR ROW NUMBER AREA(ACRE) ACTO BE REMOVED 900A-B A-B LAYDOWN AREA 700A-B A-B A-B A-B A-B A-B A-B TOTAL LAYDOWN ROW NUMBER AREA(ACRE) 900 A-B A-B A-B A-B A-B A-B A-B c 200A-B A-B TOTAL f-ci\,...!'a:!_r --t. 7.-PLA=-=N:, :..A.::..:R~EA:...:...:::.O:-F o"" W.:..:..:::O.!.!RK!..! CJ1'-300' EXHIBIT G-2 A