REGULAR AGENDA OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, JANUARY 22, 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
Commissioner Renwick - Alameda Corridor Transportation Authority (ACTA) Board Meeting Report
F. APPROVAL OF THE MINUTES
Regular Meeting of December 18, 2014
G. PRESENTATION
Los Angeles Fire Department
H. SPECIAL ORDER OF THE DAY
Public Hearing
1(a) PUBLIC HEARING FOR THE ISSUANCE OF A LEVEL II NON-APPEALABLE COASTAL DEVELOPMENT PERMIT (NO. 15-01) TO THE PORT OF LOS ANGELES TO CONSTRUCT WHARF AND BACKLAND IMPROVEMENTS AT BERTHS 212-224
Pursuant to the California Coastal Act of 1976, as amended, and the Port of Los Angeles' certified Port Master Plan, notice is hereby given to all interested persons and organizations that the Los Angeles Board of Harbor Commissioners will hold a public hearing to receive public comments prior to considering the following for a Coastal Development Permit.
Planning & Economic Development
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is proposing wharf and backland improvements at Berths 212-224 operated by Yusen Terminals, Inc. (YTI). The proposed project involves improvement of an existing container terminal to accommodate the projected fleet mix of larger container vessels up to 13,000 twenty-foot equivalent units (TEUs). The proposed project consists of deepening two existing berths (Berths 214-216 and 217-220) of which Berths 217-220 is not currently operating but would begin operating after completion of the project. Additionally, the project would extend the existing 100-foot gauge crane rail to Berths 217-220, add a single operational rail track to the Terminal Island Container Transfer Facility (TICTF) on-dock rail, modify and replace cranes, and construct backland improvements, including utility and pipeline relocations. The proposed project would increase the capacity of the YTI Terminal from 1,692,000 TEUs annually to 1,913,000 TEUs annually, an increase of 221,000 TEUs. Improvements at the other operating berth (Berths 212-213) would be limited to backlands repairs and crane modifications. The infrastructure improvements are needed to accommodate larger vessels that are anticipated to call at the terminal in the future. The Harbor Department will be financially responsible for the berth and backland improvements with an estimated design and construction cost of $58.4 million. YTI will be responsible for quay crane modifications and replacements, and ExxonMobil will be responsible for pipeline relocations. Staff is recommending that the Board of Harbor Commissioners (Board) approve Coastal Development Permit (CDP) No. 15-01, a Level II non-appealable permit for the proposed project.
Recommendation: Board resolve to (1) hold a public hearing for the proposed Coastal Development Permit No. 15-01, a Level II non-appealable permit; (2) find that the proposed project conforms with the certified Port Master Plan and find that this project will have no significant adverse environmental impacts as provided in the California Environmental Quality Act; (3) upon closure of the public hearing, resolve to approve the issuance of Coastal Development Permit No. 15-01, consistent with the project description listed on Application for Port Permit No. 130204-020, and direct the Director of Planning & Economic Development to issue said permit; and (4) adopt Resolution No.____________.
I. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT (2-7)
Commission Office
2. Re: RESOLUTION NO. ____________ - SUPPLEMENTAL TRAVEL FEES FOR THE NOVEMBER 15-26, 2014 MAYOR GARCETTI'S DEVELOPMENT & TRADE MISSION TO ASIA
Recommendation: Board resolve to adopt subject Resolution No.____________.
Real Estate
Transmittals
SUMMARY: BP West Coast Products LLC (BP) and certain affiliates, including ARCO Terminal Services Corporation (ARCO), owned multiple subsurface petroleum pipelines that cross through various railroad properties owned by the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) under Master Joint Revocable Permit (MJRP) Nos. 09-14 and 09-16, and Joint Revocable Permit (JRP) Nos. 07-22 and 09-10 (Permits). BP and ARCO have requested the Harbor Department to consent to the transfer of the Permits to Tesoro SoCal Pipeline Company LLC (Tesoro). The financial responsibility for compensation required under the MJRPs and JRPs, which include an annual Consumer Price Index escalator, is proposed to be assigned to Tesoro, who is a tenant in good standing.
Recommendation: Board resolve to (1) approve the proposed Assignment and Assumption Agreements consenting to transfer of Master Joint Revocable Permit Nos. 09-14 and 09-16 and Joint Revocable Permit Nos. 07-22 and 09-10 from BP West Coast Products LLC and ARCO Terminal Services Corporation to Tesoro SoCal Pipeline Company LLC; (2) authorize the Executive Director to execute and the Board Secretary to attest to the Assignment and Assumption Agreements; and (3) adopt Resolution No.____________.
Real Estate
4. Re: RESOLUTION NO. ____________ - APPROVING ASSIGNMENT OF JOINT REVOCABLE PERMIT NO. 10-02 FROM BP WEST COAST PRODUCTS LLC TO TESORO REFINING & MARKETING COMPANY LLC
Transmittals
SUMMARY: BP West Coast Products LLC (BP) owns subsurface petroleum pipelines that cross through certain railroad property owned by the City of Los Angeles Harbor Department and the Port of Long Beach (POLB) under Joint Revocable Permit (JRP) No. 10-02 (Permit). BP is requesting the Harbor Department to consent to the transfer of JRP No. 10-02 to Tesoro Refining & Marketing Company LLC (Tesoro). The financial responsibility for the compensation required under the JRP, which includes an annual Consumer Price Index escalator, is proposed to being transferred to Tesoro, who is a tenant in good standing.
Recommendation: Board resolve to (1) approve the proposed Assignment and Assumption Agreement consenting to transfer of Joint Revocable Permit No. 10-02 from BP West Coast Products LLC to Tesoro Refining & Marketing Company LLC; (2) authorize the Executive Director to execute and the Board Secretary to attest to the Assignment and Assumption Agreement; and (3) adopt Resolution No.____________.
Business and Trade Development
5. Re: RESOLUTION NO. ___________ - APPROVAL OF FIRST AMENDMENT TO FOREIGN-TRADE ZONE DEVELOPER AGREEMENT NO. 2369 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND INDUSTRIAL DEVELOPMENTS INTERNATIONAL, INC., FTZ 202, SITE 20
Transmittal 1
Transmittal 2
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), as the Foreign-Trade Zone (FTZ) grantee, establishes developer agreements with FTZ site owners to oversee their FTZ developments. The Harbor Department received a request from Industrial Developments International, Inc., (IDI) to execute its first renewal option to extend the term of FTZ Developer Agreement 2369 (Agreement) at FTZ 202, Site 20, located in Mira Loma, California. IDI is a real estate investment firm whose principal address is located in Foothill Ranch, California. The original term of the Agreement is five years with three, five-year renewal options. The original Agreement commenced on March 1, 2010 and is set to expire on February 28, 2015. Any change made to an original developer agreement, including existing renewal options, requires an amendment to the agreement. Upon approval, the proposed First Amendment will extend the Agreement for five years through February 28, 2019. Also, IDI recently notified the Harbor Department that the company name had been changed to Industrial Developments International, LLC. This amendment also reflects this change. All remaining terms and conditions of the Agreement shall remain in full force and effect.
Recommendation: Board resolve to (1) approve the proposed First Amendment to Foreign-Trade Zone Developer Agreement No. 2369 between the City of Los Angeles Harbor Department and Industrial Development International, Inc. to extend the Agreement for five years and company name change to Industrial Developments International, LLC.; (2) approve the proposed First Amendment to Foreign-Trade Zone Developer Agreement No. 2369 between the City of Los Angeles Harbor Department and Industrial Development International, Inc. ; (3) direct the Board Secretary to transmit the proposed First Amendment to Foreign-Trade Zone Developer Agreement No. 2369 to the Los Angeles City Council for approval pursuant to Section 373 of the Charter of the City of Los Angeles and Section 10.5 of the Los Angeles Administrative Code; (4) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the proposed First Amendments to Foreign-Trade Zone Operating Agreement No. 2369; and (5) adopt Resolution No.____________.
Business and Trade Development
Transmittal 1
Transmittal 2
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), as the Foreign-Trade Zone (FTZ) grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. The Harbor Department received a request from Schenker, Inc., (Schenker) to activate its warehouses within FTZ 202, Site 41 located at 22941 South Wilmington Avenue, Carson, California 90745. Site 41 is an 8.6-acre property warehouses located approximately 8 miles north of the Port of Los Angeles. Schenker will be operating its warehouses under FTZ procedures. The proposed FTZ Operating Agreement (Agreement) is for a term of five years with three, five-year renewal options.
Recommendation: Board resolve to (1) approve the proposed Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and Schenker, Inc.; (2) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating Agreement to the Los Angeles City Council for approval pursuant to Section 373 of the Charter of the City of Los Angeles and Section 10.5 of the Los Angeles Administrative Code; (3) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the Foreign-Trade Zone Operating Agreement; and (4) adopt Resolution No.____________.
Business and Trade Development
Transmittal 1
Transmittal 2
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), as the Foreign-Trade Zone (FTZ) grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. The Harbor Department received a request from Spectrum Brands, Inc., (Spectrum) to activate its warehouses within FTZ 202, Site 20 located at 11280 Riverside Drive, Mira Loma, California 91752. Site 20A is a 21-acre property with warehouses located approximately 60 miles north of the Port of Los Angeles. This warehouse was operated by Kwikset Corporation (Kwikset), operator of FTZ 20A. However, as of December 2012, Spectrum Brands Inc., acquired Kwikset and this ownership change required the City of Los Angeles to execute a new FTZ operating agreement. Spectrum will be operating its warehouses under FTZ procedures. The proposed FTZ Operating Agreement (Agreement) is for a term of five years with three, five-year renewal options.
Recommendation: Board resolve to (1) approve the proposed Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and Spectrum Brands Inc.; (2) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating Agreement to the Los Angeles City Council for approval pursuant to Section 373 of the Charter of the City of Los Angeles and Section 10.5 of the Los Angeles Administrative Code; (3) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the Foreign-Trade Zone Operating Agreement; and (4) adopt Resolution No.____________.
REGULAR ITEM NO. 8
Environmental Management
8. Re: RESOLUTION NO. ____________ - ADOPTION OF THE FINAL INITIAL STUDY/NEGATIVE DECLARATION FOR THE AVALON FREIGHT SERVICES RELOCATION PROJECT (LOS ANGELES HARBOR DEPARTMENT APPLICATION FOR PORT PERMIT NO. 140307-025; STATE CLEARING HOUSE NO. 201410149)
Transmittal 1
Transmittal 2
SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) adopt the Final Initial Study/Negative Declaration (IS/ND) for the proposed Avalon Freight Services Relocation Project (proposed Project) along with the comments and responses to comments; and, approve the proposed Project as described in the Final IS/ND. Avalon Freight Services is a new joint venture between Catalina Express and Harley Marine Services. Catalina Express is the passenger ferry service between mainland Los Angeles and Santa Catalina Island operating out of the Port of Los Angeles (Port) Berth 95 in San Pedro. Catalina Express, in conjunction with Harley Marine Services, was recently awarded a contract from Santa Catalina Island Company for freight movement as well. Freight movement is currently operating out of Berth 184 in Wilmington and will shift to Berth 95 as a result of the proposed Project, and it is this aspect that will be conducted with Harley Marine Services. Any future land uses or operational changes at Berth 184 are unknown at this time and would be evaluated under a separate environmental analysis. The City of Los Angeles Harbor Department (Harbor Department) is in negotiations for a lease amendment with Catalina Express as part of the proposed Project to include property which will be used for construction and operation of the freight warehouse and administrative and call center offices by Avalon Freight Services and/or Catalina Express. The costs of all construction and subsequent operating and maintenance associated with the proposed Project will be borne by Avalon Freight Services. The environmental analysis for the proposed Project is the financial responsibility of the Harbor Department. However, final negotiations on the lease amendment may result in reimbursement of these costs by Avalon Freight Services. The lease amendment, when complete, will be brought forward in a separate Board action subject to the Board's determination on this agenda item.
Recommendation: Board resolve to (1) find that, pursuant to the State California Environmental Quality Act Guidelines Section 15074, the Final Initial Study/Negative Declaration for the Avalon Freight Services Relocation Project has (a) been completed in compliance with the State California Environmental Quality Act Guidelines and the Los Angeles City California Environmental Quality Act Guidelines; (b) was presented to the Board for review and was reviewed and considered by the Board prior to approving the proposed Project; and (c) reflects the independent judgment and analysis of the City of Los Angeles Harbor Department as the Lead Agency; (2) find that, based on the whole record before it, including (a) the information contained in this report (b) the Final Initial Study/Negative Declaration for the Avalon Freight Services Relocation Project and (c) the comments received and responses to comments, the proposed Project would not have a significant effect on the environment pursuant to Public Resources Code Section 21080 and State California Environmental Quality Guidelines Section 15070; (3) find that all information added to the Final Initial Study/Negative Declaration after the public review period, but before adoption, merely clarifies, amplifies, or makes insignificant modifications, and that recirculation is not necessary; (4) adopt the Final Initial Study/Negative Declaration for the Avalon Freight Services Relocation Project; (5) authorize the Environmental Management Division to file the Notice of Determination for the subject proposed Project with the Los Angeles City and County Clerks; (6) approve the Avalon Freight Services Relocation Project; and (7) adopt Resolution No.____________.
J. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Fast Lane Transportation, Inc. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0300, including intervention by City of Carson
Consolidated with:
California Cartage Company, Inc., et al. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0311
City of Long Beach v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0312
Coalition for a Safe Environment, et al. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0308
East Yard Communities for Environmental Justice, et al. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0309
Long Beach Unified School District v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0310
South Coast Air Quality Management District v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0313
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
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to the proposed successor permit with Al Larson Boat Shop:
Property: Berths 257-258, Terminal Island, California
City Negotiators: Jack Hedge, Sumita Thappa
Tenant Negotiator: Jack Wall
Negotiating Parties: City and Al Larson Boat Shop
Under Negotiation: Price and Terms
4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to disposal via private sale of City of Los Angeles Harbor Department proprety:
Property: I-110 Freeway and John S. Gibson Blvd., San Pedro, California
City Negotiators: Jack Hedge, Paul Andre
Tenant Negotiator: James Eleopoulous
Negotiating Parties: City and Jenna Development
Under Negotiation: Price and Terms
5. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (d)(4) of Government Code Section 54956.9)
Initiation of litigation pursuant to subdivision (d)(4) of Section 54956.9: 10 cases.