REGULAR AGENDA OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, JANUARY 8, 2015 AT 8:30 A.M.
PORT OF LOS ANGELES ADMINISTRATION BUILDING
425 S. PALOS VERDES STREET
SAN PEDRO, CA 90731
BOARD OF HARBOR COMMISSIONERS
Ambassador Vilma S. Martinez, President
Vice President David Arian
Commissioner Patricia Castellanos
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
A. OPENING STATEMENT - AN OPPORTUNITY FOR MEMBERS OF
THE PUBLIC TO ADDRESS THIS BOARD
B. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS
C. EXECUTIVE DIRECTOR REMARKS
D. REPORTS OF THE COMMISSIONERS
E. BOARD COMMITTEE REPORTS
Audit Committee of December 18, 2014
F. APPROVAL OF THE MINUTES
December 11, 2014 Special BHC Meeting
G. PRESENTATION
Retirement Resolutions
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEM NOS. (1 - 2)
Planning and Economic Development
Transmittal 1
Transmittal 2
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) are proposing to undertake a comprehensive long term cargo forecast of the San Pedro Bay ports (forecast). Mercator International LLC was selected to conduct the forecast. The forecast will be used to assess the long term economic condition of the San Pedro Bay ports. The last time that the Harbor Department and the POLB conducted a comprehensive long term cargo forecast was in 2007. A subsequent update was completed in 2009. Staff requests that the Board of Harbor Commissioners (Board) authorize the execution of a Cost Share Agreement with the POLB. The agreement identifies the POLB as the primary contracting port and establishes that the costs associated with the forecast ($320,000) will be shared equally by the Harbor Department and the POLB in the amount of $160,000 each.
Recommendation: Board resolve to (1) approve the Cost Share Agreement with the Port of Long Beach for the reimbursement of $160,000 from the City of Los Angeles Harbor Department to the Port of Long Beach; (2) authorize the Executive Director to execute and the Board Secretary to attest to the Cost Share Agreement for and on behalf of the Board; and (3) adopt Resolution No.____________.
Real Estate
Transmittals
SUMMARY: Permit No. 513 (Permit) grants the United States of America, through the Department of the Navy (US Navy), 91,203 square feet of surface and subsurface right-of-way for a petroleum pipeline on City of Los Angeles Harbor Department (Harbor Department) land and water primarily located on Terminal Island. The Permit is for a term of 50 years, effective November 26, 1984 through November 25, 2034. The Permit requires that compensation be reset every five years. The proposed Order resetting compensation at $85,900 annually is for the five-year period of November 26, 2014 through November 25, 2019.
Recommendation: Board resolve to (1) approve the Order resetting compensation under Permit No. 513 for the five-year period November 26, 2014 through November 25, 2019; (2) authorize the Board Secretary to attest to the Order resetting compensation to be paid by the United States of America through the Department of the Navy, Naval Facilities Engineering Command, Southwest Division, San Diego pursuant to Section 4(c) of Permit No. 513; and (3) adopt Order No. ____________.
REGULAR ITEM NOS. (3 - 7)
Construction
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Transmittal 7
SUMMARY: The five subject agreements will provide on-call construction management services for various construction projects throughout the Port of Los Angeles (Port). Services will include, but are not limited to, construction management, cost estimating, constructability reviews and scheduling. Projects assigned to the selected consultants will vary in scope, and may require specialized expertise. The consultants will augment Construction Division staff during peaks in the Construction Division's workload. The number, sizes, and types of projects assigned to the selected consultants will be determined based on the needs of the Construction Division. Five consultants are recommended to provide these services. AECOM is located in Los Angeles, Berg & Assoc. is a small business located in San Pedro, CH2M Hill is located in Los Angeles, Integrated Engineering Management (IEM) is a small business located in San Pedro, and Simplus is a small business located in Los Alamitos. Each of the five agreements is for $2,000,000, with a duration of five years. The total maximum appropriation applicable to the five agreements is $10,000,000, which is the financial responsibility of the Harbor Department.
Recommendation: Board resolve to (1) find that in accordance with the City Charter Section 1022, work under the subject Agreements can be performed more feasibly by independent consultants and is necessary due to a peak in work volumes and current employees commitments to other assignments; (2) award a five-year personal services Agreement in the amount of $2,000,000 to each of the following: AECOM, Berg & Assoc., CH2M Hill, IEM, and Simplus; and authorize payment from the Construction Management Services account; (3) authorize the Executive Director to execute and the Board Secretary to attest to this Agreement for and on behalf of the Board; (4) direct the Board Secretary to forward the Agreements to the City Council for its approval pursuant to Section 373 of the City Charter, and Section 10.5 of the Los Angeles Administrative Code; and (5) adopt Resolution No. ____________.
Construction and Maintenance
4. Re: RESOLUTION NO. ___________ - APPROVAL OF FIRST AMENDMENT TO PERSONAL SERVICES AGREEMENT NO. 12-3045 WITH WET ENTERPRISES, INC. TO PROVIDE MAINTENANCE SERVICES FOR THE HARBOR BOULEVARD WATER FEATURES
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The Construction and Maintenance Division (C&M) is responsible for the maintenance of the Gateway Plaza Fanfare Fountains, Reflection Pool and Interactive Fountain along Harbor Boulevard in San Pedro. The fountain equipment, both software and hardware, is owned by the City of Los Angeles Harbor Department (Harbor Department) but is proprietary to WET Enterprises, Inc. (WET) of Sun Valley, California. On February 2, 2012, the Board of Harbor Commissioners (Board) approved personal services Agreement 12-3045 with WET for a term of one year with two, one-year renewal options at a maximum amount of $1,153,920 over three years. C&M requests the approval of a First Amendment to Agreement 12-3045 with WET for a one-year term extension with four additional one-year options, and a maximum additional amount of $2,014,762 for regular maintenance of these water features. All other terms and conditions of Agreement 12-3045 will remain the same. This action will ensure that these unique water features will continue to perform at optimal levels for visitors to the Port of Los Angeles (Port). This amendment is the financial responsibility of the Harbor Department.
Recommendation: Board resolve to (1) find that in accordance with Los Angeles City Charter Section 1022, work under the subject First Amendment to Agreement 12-3045 with WET Enterprises, Inc. can be performed more feasibly by an independent contractor than by City employees; (2) approve the First Amendment to Agreement 12-3045 with WET Enterprises, Inc. to increase the agreement amount by $2,014,762 for the total not-to-exceed amount of $3,168,682, and increase the agreement term by one year with four additional one-year renewal options (up to five years) for a maximum agreement total of eight years; (3) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to Agreement 12-3045 with WET Enterprises, Inc. for and on behalf of the Board; (4) authorize the Board Secretary to forward the approval of the First Amendment to Agreement 12-3045 to the City of Los Angeles City Council for its approval pursuant to Section 373 of the City Charter; and (5) adopt Resolution No. ____________.
Construction and Maintenance
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Transmittal 7
SUMMARY: The Construction and Maintenance Division (C&M) requests approval of Contract Nos. 39726 and 39727 with South Bay Ford Lincoln of Hawthorne, CA for the purchase of seven police vehicles in the amount of $341,127 including sales tax and fees, and Contract No. 39728 with Frontier Ford of Santa Clara, CA for the purchase of three police vehicles in the amount of $94,964 including sales tax and fees. Total expenditures for the ten vehicles are $436,091. These vehicles will replace nine existing police vehicles that have reached the end of their service life, and add one additional police vehicle. These replacements were planned and funded in the Fiscal Year 2014-15 capital equipment budget. These contracts are the financial responsibility of the Harbor Department.
Recommendation: Board resolve to (1) approve Contract Nos. 39726 and 39727 with South Bay Ford Lincoln of Hawthorne, CA in the amount of $341,127 and authorize said expenditures; (2) approve Contract No. 39728 with Frontier Ford of Santa Clara, CA in the amount of $94,964 and authorize said expenditures; (3) authorize the Executive Director to execute Contract Nos. 39726, 39727 and 39728; and (4) adopt Resolution No. ____________.
Real Estate
Transmittals
SUMMARY: On April 4, 2013, the Board of Harbor Commissioners (Board) approved Operating Agreement No. 3112 (Operating Agreement) with Ports America Cruise, Inc. (Ports America) for a term of five years, with two subsequent five-year renewal options, to operate, manage, and maintain the Port of Los Angeles (Port) Cruise Terminal (Cruise Terminal) at Berths 90-93 and at the Outer Harbor overflow facilities located at Berth 46 (Overflow Facilities). Overflow Facilities are used during three-ship call days. The Los Angeles City Council subsequently approved the Operating Agreement, pursuant to Charter Section 606 of the City Charter. Due to unanticipated increase in vessel sizes, an increase of $75,000 per instance in allowable expenses to service the larger vessels if the Overflow Facilities is needed, as well as $198,816 for a one-time reimbursement to Ports America for the purchase of two gangways that are used at the Overflow Facilities. Approval of the proposed First Amendment will allow for continued uninterrupted operations of the Overflow Facilities for the cruise lines and their passengers. The City of Los Angeles Harbor Department (Harbor Department) is financially responsible for budgeting sufficient funds for the Operating Agreement.
Recommendation: Board resolve to (1) approve the First Amendment to Operating Agreement No. 3112 with Ports America Cruise, Inc; (2) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to Operating Agreement No. 3112; (3) direct the Board Secretary to transmit the First Amendment to the City Council for approval pursuant to Charter Section 606 of the City Charter; and (4) adopt Resolution No.____________.
Finance
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) review and approve the proposed updated Financial Policies of the City of Los Angeles Harbor Department (Harbor Department). These policies, consisting of Fiscal (Budgetary, Revenues, and Expense Policies), Leasing, Capital Improvement Plan Funding, Financial Reserve, Risk Management, Disclosure, and Debt Management Policies, codify and reinforce the Harbor Department's continuing practice of fiscal responsibility. This set of polices will promote consistent and efficient financial procedures and operational efficiencies, and assist in compliance with applicable laws, regulations, and accounting and reporting standards. There are no substantive changes to the policies other than the deletion of the section related to using bond insurance to enhance the credit risks of a bond issue, and the insertion under the Debt Management Policy section, an article for Post-Issuance Tax Compliance to follow new regulations for tax-exempt bond issuers. Other alterations relate primarily to formatting and style. The approval of the financial policies complies with the Los Angeles City Council motion, Council File No. 04-1822-S3, in which the Harbor Department is urged to implement certain financial policies that more closely align with those of the City of Los Angeles' Financial Policies as adopted by the City Council and approved by the Mayor. Adherence to the Financial Policies is the responsibility of the Harbor Department.
The approval of these policies does not cause the Harbor Department to incur any financial expenditures.
Recommendation: Board resolve to (1) approve and adopt the Harbor Department's Financial Policies as outlined in this report for the following: Fiscal (Budgetary, Revenues, and Expense Policies), Leasing, Capital Improvement Plan Funding, Financial Reserve, Risk Management, Disclosure, and Debt Management Policies; and (2) adopt Resolution No.____________.
I. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
(Litigation Matter Under Seal)
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to the proposed ground lease for Ports O'Call site:
Property: Berths 74-83, San Pedro, California
City Negotiator: Michael Galvin
Tenant Negotiators: Eric Johnson, Brian Saenger
Negotiating Parties: City and LA Waterfront Alliance
Under Negotiation: Price and Terms