Regular Agenda - March 19, 2015
REGULAR AGENDA OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, MARCH 19, 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
F. APPROVAL OF THE MINUTES
March 5, 2015 Regular Meeting
G. PRESENTATION
Cabrillo Marine Aquarium Master Plan
Red Car Project Update
H. SPECIAL ORDER OF THE DAY
Level I Coastal Development Permit Report
In accordance with the approved Port of Los Angeles Master Plan (PMP), the Executive Director is designated with the authority to approve or deny applications for Level I Coastal Development Permits (CDP), but these CDPs only become effective when the permits are reported in writing to the Board of Harbor Commissioners (Board). No Board action is required. Additionally, the PMP provides that a Level I CDP that is being reported to the Board can be stayed if any two Board members so request. In this case, the CDP would be agendized for the next regular Board meeting and would require Board action to be approved or denied. This Level I CDP has completed an environmental review in accordance with the requirements of the California Environmental Quality Act No City of Los Angeles Harbor Department (Harbor Department) funds are needed for the following CDP:
The Deputy Executive Director has approved one Level I CDP:
CDP No. 15-03 Eagle Marine Services, Ltd. - Installation of Fence
I. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 10)
Business and Trade Development
Transmittal 1
Transmittal 2
SUMMARY: 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 California Cartage Company, LLC (California Cartage). Site 1-A, located in Wilmington, California, to exercise their second and final renewal option to extend the term of their FTZ Operating Agreement No. 13-3107 (Agreement) at FTZ 202, Site 1-A. California Cartage headquartered in Long Beach, California, is a full-service logistic company. The original term of the Agreement was one year with two, one-year renewal options and first renewal was approved by City Council on June 24, 2014 to May 31, 2015. Any change made to an original operating agreement, including existing renewal options, requires an amendment to the agreement. Upon approval, the proposed Second Amendment (Amendment) will extend the Agreement for one year to May 31, 2016. All remaining terms and conditions of Agreement shall remain in full force and effect. California Cartage is financially responsible to the Harbor Department for the payment of $7,750.00 annual FTZ fee.
Recommendation: Board resolve to (1) approve the proposed Second Amendment to Foreign-Trade Zone General Purpose Operating Agreement No. 13-3107 between the City of Los Angeles Harbor Department and California Cartage Company, LLC to extend the Agreement for one year; (2) direct the Board Secretary to transmit the proposed Second Amendment to Foreign-Trade Zone General Purpose Operating Agreement No. 13-3107 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 proposed Second Amendment to Foreign-Trade Zone General Purpose Operating Agreement No. 13-3107; 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 National Distribution Centers, LLC. (NDC) to activate its warehouses within FTZ 202, Site 37, located at 15710 San Antonio Avenue, Chino, California 91708. Site 37 is a 12.5-acre property located approximately 50 miles northeast of the Port of Los Angeles. NDC will be operating its warehouses under FTZ procedures. The proposed FTZ General Purpose Operating Agreement (Agreement) is for a term of five years with three, five-year renewal options. NDC is financially responsible for paying the Harbor Department the annual FTZ fees due.
Recommendation: Board resolve to (1) approve the proposed Foreign-Trade Zone General Purpose Operating Agreement between the City of Los Angeles Harbor Department and National Distribution Centers, LLC. to execute the FTZ operating agreement for a term of five years and three, five-year renewal options; (2) direct the Board Secretary to transmit the proposed Foreign-Trade Zone General Purpose 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 General Purpose 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 38, located at 2301 West San Bernardino Ave, Redlands, CA 92374. Site 38 is a 47.6-acre property located approximately 82 miles northeast of the Port of Los Angeles. Spectrum will be operating its warehouses under FTZ procedures. The proposed FTZ General Purpose Operating Agreement (Agreement) is for a term of five years with three, five-year renewal options. Spectrum is financially responsible for paying the Harbor Department the annual FTZ fees due.
Recommendation: Board resolve to (1) approve the proposed Foreign-Trade Zone General Purpose Operating Agreement between the City of Los Angeles Harbor Department and Spectrum Brands, Inc. to execute the FTZ operating agreement for a term of five years and three, five-year renewal options; (2) direct the Board Secretary to transmit the proposed Foreign-Trade Zone General Purpose 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 General Purpose Operating Agreement; and (4) adopt Resolution No._____________.
Commission Office
4. Re: RESOLUTION NO.____________ - APPOINTING ANTONIO V. GIOIELLO AS AN ALTERNATE TO THE GOVERNING BOARD OF THE ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY
Recommendation: Board resolve to adopt subject Resolution No.____________.
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.____________.
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.____________.
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.____________.
Information Technology
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is requesting approval of the Second Amendment to Agreement No. 10-2903 with Microsoft Corporation (Microsoft) for support and consulting services for Microsoft products used by the Harbor Department. These services are required to maintain and optimize the Harbor Department’s computing environment, which relies on Microsoft technology for its on-going operations. The proposed Second Amendment will revise Microsoft's Fee Summary and Services by Support Location document, which will correct a clerical error in this document and reduce the authority of the Agreement by $5,942. The revision will not change the services that the Harbor Department planned to use. All remaining terms and conditions of Agreement No. 10-2903 remain unchanged.
The Agreement with Microsoft is a sole-source agreement as Microsoft software and products can only be serviced by Microsoft. Microsoft is based in Redmond, Washington, with offices in Los Angeles and other Southern California cities. The Harbor Department will continue to be financially responsible for payment of services rendered under the Agreement.
Recommendation: Board resolve to (1) find that in accordance with the Los Angeles City Charter Section 1022, the work under the subject agreement can be performed more feasibly by independent contractors than by City employees; (2) approve the Second Amendment with Microsoft Corporation to reduce the existing Agreement authority by $5,942 for a not to exceed amount of $1,492,027; (3) direct the Board Secretary to transmit the Second Amendment to the City Council for approval pursuant to Charter Section 606; (4) authorize the Executive Director or designee to execute the Second Amendment to Agreement No. 10-2903 and authorize the Board Secretary to attest to said agreement; and (5) adopt Resolution No.____________
Risk Management
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) recommends the Board of Harbor Commissioners (Board) approve a one-year Agreement, with two one-year renewal options, with Alliant Insurance Services, Inc. (Alliant) headquartered in Newport Beach, California, to provide consultative insurance brokerage and risk management services to assist with administration of the Harbor Department's risk management program. The recommendation to select Alliant is based on the Harbor Department's competitive Request for Proposal (RFP) process initiated to replace expiring Agreement 12-3057 with Alliant for such services. The proposed Agreement would authorize the Harbor Department to expend up to $13,450,000 over a three-year period that covers up to $231,818 for broker fees, up to $78,182 for as-needed additional services, and up to $13,140,000 for insurance expenses. The financial responsibility for payment of services rendered is the Harbor Department's.
Recommendation: Board resolve to (1) find that in accordance with City of Los Angeles Charter Section 1022, work under the subject Agreement can be performed more feasibly by an independent contractor than by City employees; (2) award the agreement to Alliant for insurance brokerage and risk management services for a term of three years and authorize payments of up to $231,818 for broker fees and up to $78,182 for as-needed additional services over a three-year period, estimated at $103,333 each year, for broker fees and fees for as-needed additional services; (3) authorize payments up to $13,140,000 over a three-year period, estimated at $4,380,000 each year, for insurance expenses; (4) authorize the Executive Director or a designee to execute the two one-year renewal options for and on behalf of the Board; (5) authorize the Executive Director to execute and the Board Secretary to attest to said agreement; and (6) adopt Resolution No._____________.
Real Estate
10. Re: RESOLUTION NO.____________ - APPROVE REVOCABLE PERMIT NO. 13-34 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND SOUTHERN CALIFORNIA MARINE INSTITUTE
Transmittal 1
Transmittal 2
SUMMARY: On October 11, 1979, the Board of Harbor Commissioners (Board) granted Permit No. 398 (P398) to the University of Southern California for a term of 25 years. On March 24, 1995, P398 was subsequently assigned to Southern California Marine Institute (SCMI), a multi-campus research facility and non-profit oceanographic institution headquatered on Terminal Island. P398 has been on holdover since 2004 and will be superceded by proposed Revocable Permit No. 13-34 (RP No. 13-34).
The proposed revocable permit will have a quarterly compensation of $28,223, of which $5,000 is payable in cash and the remainder ($23,223) as a credit for in-kind services provided to the City of Los Angeles Harbor Department (Harbor Department) and other agencies. The compensation is subject to annual Consumer Price Index (CPI) adjustment. SCMI is responsible for making quarterly rental payments, as well as providing quarterly and annual reporting of activities. RP No. 13-34 is being presented to the Board due to its in-kind services compensation.
Recommendation: Board resolve to (1) approve Revocable Permit No. 13-34 with Southern California Marine Institute; (2) authorize the Executive Director to execute and the Board Secretary to attest to Revocable Permit No. 13-34; and (3) adopt Resolution No._____________.
REGULAR ITEMS (11 & 12)
Executive Office
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The Port Community Mitigation Trust Fund (PCMTF) was established for the purpose of funding appropriate mitigation projects and grants addressing port-related impacts for the communities of San Pedro and Wilmington. The Harbor Community Benefit Foundation (HCBF), an independent nonprofit organization established to operate the PCMTF, and is responsible for identifying qualifying projects to receive grant funding from the PCMTF with concurrence by the Board of Harbor Commissioners (Board). HCBF Board of Directors has selected 21 projects to receive PCMTF funds. Through the Harbor Schools Science, Technology, Engineering, Art, and Math Initiative (STEAM) pilot program, 18 projects will benefit 18 organizations, with an equal funding distribution of $300,000 between San Pedro and Wilmington. Additionally, three final projects will receive a total of $50,000 through the Community Benefit Grants Round 2 Program. All proposed projects have a clear Tidelands nexus and will mitigate, reduce, and address the Port of Los Angeles' (Port) impact on the communities of Wilmington and/or San Pedro. HCBF's request is in accordance with the requirements of the TraPac Memorandum of Understanding (MOU) and TraPac MOU Operating Agreement (Operating Agreement). Upon approval, $350,000 will be transferred from the PCMTF to HCBF for 21 total grant awards that will be equally dispersed between the communities of San Pedro and Wilmington. Upon the transfer of funds, HCBF will be financially responsible for the proposed projects and for the disbursement of funds as required program thresholds are met. No additional payments from the Harbor Department will be required to fund this request.
Recommendation: Board resolve to (1) approve Harbor Community Benefit Foundation's selection of 21 projects to receive awards from the Harbor Schools STEAM Initiative and Community Benefit Grant Program Round 2, funded by the Port Community Mitigation Trust Fund; (2) authorize the Executive Director or his designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the distribution of funds in one lump sum payment of $350,000 from J.P. Morgan Private Bank to the Harbor Community Benefit Foundation to be used in accordance with Harbor Community Benefit Foundation's request; and (3) adopt Resolution No._____________.
Planning & Economic Development
SUMMARY: General Petroleum Corporation (General Petroleum) dba Maxum Petroleum is requesting an amendment to Coastal Development Permit (CDP) No. 12-11, a Level I, non-appealable permit. CDP No. 12-11 permitted the demolition of five aboveground storage tanks, site remediation, installation of temporary storage tanks, and construction of three new permanent 12,000-gallon aboveground storage tanks at Berth 259. This amendment to CDP No. 12-11 would allow General Petroleum to construct an additional 12,000-gallon aboveground storage tank for diesel fuel, increasing the total from three to four 12,000-gallon tanks with a total capacity of 48,000 gallons. General Petroleum is financially responsible for all site improvements associated with this project. The City of Los Angeles Harbor Department (Harbor Department) will not provide any funding for this project. Staff is recommending that the Board of Harbor Commissioners (Board) approve the amendment to CDP No. 12-11.
Recommendation: Board resolve to (1) find that the proposed project conforms with the certified Port Master Plan (PMP) and find that this project will have no significant adverse environmental impacts as provided in the California Environmental Quality Act; (2) resolve to approve the amendment to Coastal Development Permit No. 12-11, consistent with the amended project description listed on the Application for Port Permit No. 120313-024, and direct the Director of Planning & Economic Development to issue said permit; and (3) adopt Resolution No._____________.
J. CLOSED SESSION
1. 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
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to the Seventh Amendment to Permit 733 with Eagle Marine Services:
Property: Pier 300, Terminal Island, California
City Negotiators: Jack Hedge; Sumita Thappa; Eric Caris; Diane Boskovich
Tenant Negotiator: Than Seeds
Negotiating Parties: City and Eagle Marine Services
Under Negotiation: Price and Terms
3. 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: eight cases.