Case 2:08-cv-04920-CAS-CT Document 303 Filed 08/26/10 Page 23 of 57 Page ID #:10025
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adopting the Concession program, that a Concession mechanism based on a
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employee-driver based business model would transform the market for drayage services
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into a “market characterized by the presence of fewer, generally larger, and more stable
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LMCs.” Ex. 185, “BHC Order No. 6522.”
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80.
In her March 20, 2008 presentation to the Board of Harbor Commissioners
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recommending adoption of the Concession mechanism, POLA’s executive director
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wrote that under the proposed mechanism, “Total diversion [of container movements]
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will be approximately 3% based on rational economic decisions resulting from drayage
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price increases. . . . Drayage price increases especially due to labor changes. . . .
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Asset-based LMCs with 100% employees creates barriers to entry.” Ex. 225, “Exec.
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Director’s Presentation to BHC, 3/20/08.”
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81.
The Opinion of then Board of Harbor Commissioners President David
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Freeman states POLA’s objectives in adopting the Concession program: “It is beyond
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debate that the existing system does not meet critical needs of the Port as a proprietor in
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three fundamental, crucial public interest needs: 1) cleaner air; 2) homeland security; and
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3) a reliable work force that can implement needs 1) and 2).” Ex. 128, “BHC Meeting
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Minutes, 3/20/10.” The president’s Opinion was adopted as the Opinion of the Entire
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Commission. Id.
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G.
POLA’s Concession Agreement Requirements
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82.
The Board of Harbor Commissioners approved a form Concession
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Agreement contract on May 15, 2008, although this version was subsequently amended
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by formal Board action. Ex. 139, “BHC Meeting Minutes, 5/15/10.”
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83.
Subsequently, in 2008 and 2009, POLA implemented various funding and
incentive programs to help motor carriers procure clean trucks. 84.
A 2008 incentive program attracted 2,200 privately-financed trucks meeting
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2007 EPA emission standards to POLA and the Port of Long Beach, at a total cost to
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POLA of approximately $44 million. To qualify for POLA’s incentive program, trucks
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had to be privately funded and be committed to make a minimum of 300 trips per year at 23