Regular Agenda - May 2, 2013
*REVISED
AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, MAY 2, 2013 AT 8:30 A.M.
PORT OF LOS ANGELES ADMINSTRATION BUILDING
425 S. PALOS VERDES STREET
BOARD ROOM, 2nd FLOOR
SAN PEDRO, CA 90731
CONVENING IN MEMORY OF ZENY LERMA, RETIRED LONG-TERM EMPLOYEE
BOARD OF HARBOR COMMISSIONERS
President Cindy Miscikowski
Vice President David Arian
Commissioner Robin M. Kramer
Commissioner Douglas P. Krause
Commissioner Sung Won Sohn
A. OPENING STATEMENT – AN OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO ADDRESS THIS BOARD
PERSONS IN THE AUDIENCE MAY ADDRESS THIS BOARD IN CONNECTION WITH ANY AGENDA ITEM OR DURING THE PUBLIC COMMENT PERIOD.
AS PROVIDED BY THE BROWN ACT, THE BOARD HAS LIMITED EACH INDIVIDUAL’S SPEAKING TIME TO THREE MINUTES. ANYONE DESIRING TO SPEAK DURING THE PUBLIC COMMENT PERIOD IS REQUESTED TO COMPLETE A SPEAKER CARD AND SUBMIT IT TO THE COMMISSION SECRETARY, VIA THE SERGEANT AT ARMS, PRIOR TO THE START OF THE MEETING.
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 MINUTES
Minutes of the Special Meeting of March 21, 2013 and Regular Meeting of April 18, 2013 for approval.
G. PRESENTATIONS
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1- 5)
Clean Truck Program
SUMMARY: On May 8, 2012, the City of Los Angeles Harbor Department (Harbor Department) entered into a one year Executive Director Agreement (Agreement No. E6646) with PierPass, Inc. (PierPass), located in Long Beach, California, to provide trucking gate move data collected at the Port of Los Angeles’ (Port) seven major container terminals to the Harbor Department on a weekly basis in order to support the Clean Truck Program (CTP). The Harbor Department utilizes the data to ensure continuing compliance with the CTP’s terminal access restrictions under the Port Tariff and concessionaire requirements. Additionally, this data assists the Harbor Department in generating its Annual Emissions Inventory, supports CTP policy decision-making, provides the public with drayage truck moves analysis, and verifies compliance with the CTP program requirements. It is important for the Harbor Department to continue receiving the data to monitor and track CTP effectiveness.
The proposed action would approve a First Amendment (Amendment) to Agreement No. E6646 (Transmittal 1), a two-year term extension to May 7, 2015, at a total cost of $84,000.
Recommendation: Board resolve to (1) find that this Agreement qualifies for award on a sole source basis as a contract for the performance of professional, technical and special services of a temporary or occasional character for which competitive bidding is not practicable or advantageous, pursuant to Los Angeles City Charter, Section 371(e)(2) and Los Angeles Administrative Code Section 10.15(a)(2); (2) find in accordance to Los Angeles City Charter Section 1022 that the scope of work of the proposed Agreement can be more economically and feasibly provided by an independent contractor than by City employees; (3) approve the proposed First Amendment to Executive Director Agreement No. E6646 with PierPass, Inc. to extend the current Agreement to May 7, 2015 for a total cost of $84,000; (4) authorize the Executive Director to execute and Board Secretary to attest to the proposed First Amendment to Executive Director Agreement No. E6646 for and behalf of the Board of Harbor Commissioners; and (5) adopt Resolution No.____________.
Debt & Treasury Management
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) proposes to enter into contractual Agreements with three financial advisory firms and one specialty advisory firm for a three-year period with each firm. The Harbor Department uses advisors to assist on a wide variety of subjects, including the latest developments in the financial markets, debt issuance and structuring, the costs and benefits analysis for financial opportunities and leasing activities, among other issues.
Staff is now recommending approval of three-year Agreements with Fieldman Rolapp & Associates, Inc., a local small business enterprise (SBE) firm with offices in Irvine, CA to provide general financial advisory services; Frasca & Associates, LLC, a very small business enterprise (VSBE) and woman business enterprise (WBE) firm with offices in New York and Orinda, CA to provide general financial and specialty advisory services; Montague DeRose & Associates LLC, a local SBE firm with offices in Westlake Village, Walnut Creek, and Sacramento, CA to provide general financial and specialty advisory services; and Norbridge, Inc., an other business enterprise (OBE) firm with offices in Concord, MA and Washington D.C., to provide specialty advisory services. The aggregate not-to-exceed amount for a 36-month term for these four agreements is estimated at $400,000, including related expenses. These firms are being recommended as a result of a competitive request for proposal (RFP) process.
The four firms will be utilized on an as-needed basis through directives issued by the Harbor Department’s Chief Financial Officer and/or Director of Debt and Treasury.
Recommendation: Board resolve to (1) find that in accordance with the Los Angeles City Charter Section 1022, the services required are temporary and of a professional, expert, and technical nature, which can be performed more feasibly by an independent contractor; (2) approve the Agreements at an aggregate not-to-exceed amount of $400,000, for a 36-month term, including related expenses, with Fieldman Rolapp & Associates, Inc.; Frasca & Associates, LLC; Montague DeRose and Associates LLC; and Norbridge, Inc. to provide general financial and specialty advisory services on an as-needed basis; (3) authorize the Executive Director or designee to execute and the Board Secretary attest to said Agreements for and on behalf of the Board; and (4) adopt Resolution No.____________.
Real Estate
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), in cooperation with the California Department of Transportation (Caltrans), is proposing to construct soundwalls within Caltrans’ right-of-way along the Interstate 110 (I-110) and State Route 47 (SR-47) intersection in San Pedro. The soundwalls will reduce the sound level of freeway-generated noise.
The project needs temporary construction easements (TCE) with terms of 24 months, plus four six-month options to extend, for purposes incidental to the construction of the soundwalls. These TCEs need to be acquired on a portion of all adjacent properties to provide adequate space to construct the soundwalls. In total, there are 62 TCEs for properties located adjacent to the project area.
The Harbor Department notified the owners of the affected properties regarding the soundwall construction on April 10, 2012. Paragon Partners Ltd. (Paragon), a Harbor Department consultant, completed an inspection of all properties and made a determination of just compensation for the TCEs.
Recommendation: Board resolve to (1) approve the Temporary Construction Easements listed in Transmittal 1 that are substantially in the form as the Temporary Construction Easement attached as Transmittal 2; (2) authorize the Executive Director to execute and the Board Secretary to attest to the Temporary Construction Easements listed in Transmittal 1 that are substantially in the form as the Temporary Construction Easement attached as Transmittal 2; and (3) adopt Resolution No.____________.
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) granted Permit No. 634 to Shell Oil Company (Shell) at Berths 167-169 for the construction, operation, modification, and maintenance of a marine hydrocarbon terminal and related uses. Permit No. 634 has a 35-year term, effective February 12, 1988 through February 11, 2023. The current five-year compensation period began on February 12, 2008 and ended on February 11, 2013. Shell is a tenant in good standing.
As required by Permit No. 634 and the Los Angeles City Charter Section 607(b), minimum rental compensation for Shell must be adjusted for the five-year period of February 12, 2013 through February 11, 2018. The reset will not impact the negotiations for the Marine Oil Terminal Engineering and Maintenance Standards (MOTEMS) that are currently underway. All remaining terms and conditions of the Permit No. 634 shall remain the same.
Recommendation: Board resolve to (1) adopt the Order resetting compensation under Permit No. 634 for Shell Oil Company for the period of February 12, 2013 through February 11, 2018; (2) authorize the Board Secretary to attest to the Order resetting compensation pursuant to Permit No. 634; and (3) adopt Order No.____________.
SUMMARY: Executive Director Agreement No. E6641 (Agreement) with Municipal Consulting, Inc., dba IMC Municipal Consulting (IMC) provides real estate consulting services and terminates on May 3, 2013. The First Amendment to the Agreement is requested to extend the expiration date to June 30, 2013, and add $20,000 to the compensation, for an overall total of $170,000. All other terms and conditions of the Agreement will remain the same. The proposed First Amendment will allow the consultant time and funding to complete several critical projects that are near completion.
Recommendation: Board resolve to (1) approve the First Amendment to Executive Director Agreement No. E6641 with Municipal Consulting, Inc.; (2) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to Executive Director Agreement No. E6641; and (3) adopt Resolution No.____________.
REGULAR ITEMS (6 - 10)
Business & Trade Development
SUMMARY: The California Association of Port Authorities (CAPA), of which the Port of Los Angeles (Port) is a member, adopted an annual general rate increase (GRI) methodology for tariffs based on the West Region Consumer Price Index for All Urban Consumers (CPI-U). The effective date of each GRI would be July 1 of each Calendar Year (CY). The Bureau of Labor Statistics has identified a 1.7 percent increase in the CPI-U for the 12 month period ending December 2012. The Port through CAPA had a 5 percent GRI in CY 2004 and 2005. GRIs have not kept pace with inflation.
Staff is recommending approval of a GRI effective July 1, 2013 of 1.7 percent, applicable to Port of Los Angeles Tariff No. 4 (Tariff No. 4) rated tariff items, with exceptions. A Temporary Order is being proposed to allow ample time for the Permanent Order to be approved by the City Council.
Recommendation: Board resolve to (1) approve the Amendment to all rated Port of Los Angeles Tariff No. 4 tariff items (Transmittal 1), subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities procedure; (2) adopt Temporary Order No.________ and Permanent Order No.________ to amend all rated tariff items in the Port of Los Angeles Tariff No. 4 (Transmittal 2 and 3); (3) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the Amendments to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a) (Transmittal 4); (4) authorize the Board Secretary to certify to the adoption of the Temporary Order by the Board and cause the same to be published once in a newspaper, printed, and published in the City of Los Angeles, to take effect prior to adoption by Ordinance for a period not-to-exceed 90 days pursuant to Charter Section 653(b) and transmit the Temporary Order to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website as regulated by the Federal Maritime Commission; and (5) after the effective date of the Ordinance, transmit the Permanent Order and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website as regulated by the Federal Maritime Commission.
SUMMARY: In November 2012, the California Association of Port Authorities (CAPA), of which the Port of Los Angeles (Port) is a member, adopted an annual general rate increase (GRI) methodology for CAPA member tariffs based on the West Region Consumer Price Index for All Urban Consumers (CPI-U). The effective date of each GRI would be July 1 of each calendar year.
To implement the annual CAPA GRI, staff is recommending the Board of Harbor Commissioners (Board) adopt two amendments to Tariff No. 4 establishing Item 201 “General Rate Increase” under Section Two “General Rules and Regulations, and adding definitions to Section One “Definitions”, Item 100. Item 201 in Tariff No.4 describes how the GRI would be implemented each year. Item 100 in Tariff No. 4 addresses new definitions used in Item 201.
Recommendation: Board resolve to (1) approve the Amendments to Port of Los Angeles Tariff No. 4 establishing Item 201 “General Rate Increase” under Section Two “General Rules and Regulations”, and adding definitions in Section One “Definitions”, Item 100, both subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities procedure; (2) adopt Permanent Order No._______ establishing Item 201 “General Rate Increase” under Section Two “General Rules and Regulations” and adding definitions in Section One “Definitions”, Item 100, in the Port of Los Angeles Tariff No. 4 ; (3) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the Amendments to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); and (4) after the effective date of the Ordinance, transmit the Permanent Order and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website as regulated by the Federal Maritime Commission
SUMMARY: The West Coast Marine Terminal Operators Agreement (WCMTOA) has requested the Los Angeles Harbor Department (Harbor Department) to amend the Port of Los Angeles Tariff No. 4 (Tariff No. 4) adding language to Item 1210 “Electricity for Power and Lighting” (Item 1210) under Section Twelve “Water and Electricity” (Section Twelve) of Tariff No. 4, clarifying that no entity shall be prevented from billing for the electrical power consumption of ships connected to shore power. Staff is also seeking to amend language in Section Twelve, Item 1210 clarifying that the City of Los Angeles Harbor Department (Harbor Department) will continue to apply a 15 percent Administrative Fee to the cost of labor provided by the Harbor Department.
Staff is recommending the Board of Harbor Commissioners (Board) approve amendments to Section Twelve, Item 1210 of Tariff No. 4.
Recommendation: Board resolve to (1) approve the proposed Amendment to Port of Los Angeles Tariff No. 4, Section Twelve “Water and Electricity”, Item 1210 “Electricity for Power and Lighting”, subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities’ procedure; (2) adopt Permanent Order No.__________ to amend item 1210 “Electricity for Power and Lighting” of the Port of Los Angeles Tariff No. 4, Section Twelve “Water and Electricity”; (3) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the proposed Amendment to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); and (4) after the effective date of the Ordinance, transmit the Permanent Order and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website, as regulated by the Federal Maritime Commission.
Environmental Management
SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) approve the City of Los Angeles Harbor Department’s (Harbor Department) Built Environment Historic, Architecture and Cultural Resource Policy. The proposed policy would provide a guide to Harbor Department staff and the public going forward for the identification, evaluation and appropriate treatment of historic buildings and structures owned by, or located on property under the possession, management or control of the Harbor Department.
Recommendation: Board resolve to (1) approve the City of Los Angeles Harbor Department Built Environment Historic, Architecture and Cultural Resource Policy; (2) authorize the Executive Director, or designee, to carry out this policy, including to determine if buildings or structures are potentially eligible for listing on federal, state or local historic registers; and (3) adopt Resolution No.____________.
External Relations
10. Re: RESOLUTION NO. ____________ - DISPOSITION OF PORT COMMUNITY ADVISORY COMMITTEE
SUMMARY: This report is a follow up to a presentation given to the Board of Harbor Commissioners (Board) on April 4, 2013. The External Relations Bureau is requesting the Board to consider that the Port Community Advisory Committee (PCAC) has successfully completed its mission and consequently to recognize that the PCAC is no longer a standing committee. The City of Los Angeles Harbor Department (Harbor Department) plans to utilize a multipronged approach to reach its diverse stakeholder base rather than relying on a single entity such as PCAC. To ensure awareness of stakeholder concerns the most recent Port of Los Angeles Strategic Plan (Strategic Plan) identifies “Strong Relationships” as one of three key results areas to focus on. To obtain stakeholder input and to increase stakeholder and community awareness and support in matters related to the Port of Los Angeles (Port) as outlined in the Port Strategic Plan, seven initiatives were established. The initiatives include a variety of strategies such as customer service, port tours, social media, media relations and community investment.
Recommendation: Board resolve to (1) find that the Port Community Advisory Committee has completed its mission; (2) make a determination that the Port Community Advisory Committee is no longer a standing committee of the Board; (3) direct staff to continue to make community outreach and stakeholder input a priority through active engagement with the Neighborhood Councils and the establishment of ad hoc public committees as necessary to assist the Port in targeting specific community outreach efforts; and (4) adopt Resolution No.____________.
I. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
(Subdivision (d)(2) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (d)(2) of Section 54956.9 (seven cases).
The following parties have filed seven separate appeals to the Los Angeles City Council regarding the decision by the Board of Harbor Commissioners to certify the Southern California International Gateway Project (SCIG Project) Final Environmental Impact Report and approve the SCIG project, LAHD ADP No. 041027-199, SCH No. 2005091116.
Appellant: City of Long Beach
Appellant: Coalition for a Safe Environment
Appellant: Fast Lane Transportation, Inc.
Appellant: Long Beach Unified School District
Appellants: Natural Resources Defense Council, Coalition for Clean Air, East Yard Communities for Environmental Justice
Appellant: South Coast Air Quality Management District
*Appellants: Cal Cartage, Three Rivers Trucking, LA Harbor Grain & San Pedro Forklift
2. 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: one case.
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 827 granted to APM Terminals Pacific Limited:
Property: 2500 Navy Way, Terminal Island
City Negotiator: Jack Hedge/Sumita Thappa
Tenant Negotiator: Alan McCorkle
Negotiating Parties: City and APM Terminals
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 Permit 634 granted to Equilon Enterprises, dba Shell Oil:
Property: Berths 167-169
City Negotiator: Michael Galvin
Tenant Negotiator: Bob Dicks
Negotiating Parties: City and Equilon Enterprises, dba Shell Oil
Under Negotiation: Price and Terms
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permits 712 and 713 granted to Shore Terminals, LLC (Nustar):
Property: Berth 163
City Negotiator: Michael Galvin
Tenant Negotiator: Chad Edinger
Negotiating Parties: City and Shore Terminals, LLC (Nustar)
Under Negotiation: Price and Terms
6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 306 granted to Ultramar, Inc. (Valero):
Property: Berth 164
City Negotiator: Michael Galvin
Tenant Negotiator: Steve Faichney
Negotiating Parties: City and Ultramar, Inc. (Valero)
Under Negotiation: Price and Terms
7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Revocable Permit 92-24 granted to Phillips 66 Company:
Property: Berths 148-151
City Negotiator: Michael Galvin
Tenant Negotiator: David Ching
Negotiating Parties: City and Phillips 66 Company
Under Negotiation: Price and Terms
8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 560 granted to Vopak Terminals North America, Inc.:
Property: Berths 191-194
City Negotiator: Michael Galvin
Tenant Negotiator: Mike LaCavera
Negotiating Parties: City and Vopak Terminals North America, Inc.
Under Negotiation: Price and Terms
9. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 704 granted to ExxonMobil Pipeline Company:
Property: Berths 238-240
City Negotiator: Michael Galvin
Tenant Negotiator: Dennis Courtney
Negotiating Parties: City and ExxonMobil Pipeline Company
Under Negotiation: Price and Terms