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Executive Summary:

Two mammoth projects account for 15 of the 25 largest contracts on the city’s books during the 1996-97 fiscal year.

Ten contracts on the List with a combined value of $255.3 million were awarded to companies working on the Pier 300/400 Implementation Program in the Los Angeles Harbor. The Hyperion Treatment Plant in Playa del Rey accounted for five contracts with a combined value of $146.6 million.

Projects at the Port of Los Angeles also employed a great deal of contractors. This year, the port opened two new terminals: Global Gateway South, a container complex operated by APL Ltd., and the Los Angeles Export Terminal. They are part of an ongoing, $650 million construction program that engages 20 prime contractors, 15 of which appear on the List.

The huge investment of capital in L.A.’s infrastructure is warranted by the anticipated growth in international trade, particularly with Asian countries. For the first 10 months of 1997, the port has handled almost 2.5 million TEUs (twenty-foot equivalent units) in container volume, which is an increase of more than 11 percent over the same period in 1996. It is expected that the volume of cargo passing through the port will double in the next 20 years.

The Pacesetter:

The largest single contract by the city in fiscal 1996-97 paid $149 million to the Tutor-Saliba/Perini-Scott joint venture for its work on the Hyperion Treatment Plant. The contract is part of a massive construction program to upgrade the city’s wastewater system in order to meet state and federal environmental and public-health requirements.

The Hyperion Treatment Plant is the largest of four wastewater treatment plants in Los Angeles, and it processes more than two-thirds of the city’s residential and industrial sewage. In 1987, the amended consent decree between the city and the Environmental Protection Agency initiated the construction of new “secondary treatment” facilities at the plant. These facilities, together with other improvements at the plant, will have cost a total of $3 billion by scheduled completion in 1998, according to Wayne Lawson, division engineer at the wastewater construction management division of the city’s Public Works Department.

The work performed by Tutor-Saliba/Perini-Scott will complete the final phase of the construction on the new facilities. Upon completion, the plant will have the capacity to process 450 million gallons of wastewater per day.

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