Regular and Special Agendas - May 16, 2013
AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, MAY 16, 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
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.
444.
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
G. PRESENTATIONS
Foreign-Trade Zone Tariff
FY2013/14 Proposed Budget
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1- 4)
Business & Trade Development
Transmittal 1
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) as Foreign-Trade Zone (FTZ) grantee is required to publish a FTZ tariff. The Port of Los Angeles (Port) FTZ Tariff No. 1 (Tariff No. 1) was published on August 3, 1995. On July 7, 2011 the Board of Harbor Commissioners (Board) adopted an Alternative Site Framework (ASF) that facilitates more efficient General Purpose FTZ site approvals. The adoption of the ASF program requires updates to be made to Tariff No. 1. The revisions include additional administrative procedures and new Federal terminology. Additionally, a significant change was made to the FTZ Regulations (published February 2012) that requires each Zone Grantee to maintain a Zone Schedule/Tariff that meets the Uniform Treatment provision of the regulations. Tariff No. 2 includes all these changes to ensure compliance by the Harbor Department. At the same time, staff took the opportunity to evaluate the cost to manage the FTZ program. This evaluation resulted in a proposal to increase the annual FTZ fees to meet our actual cost to manage the program. Due to the significant changes needed to a Tariff No. 1, staff recommends the Board approve replacing Tariff No. 1 with a new FTZ Tariff No. 2 (Tariff No. 2).
Recommendation: Board resolve to (1) approve proposed Port of Los Angeles Foreign-Trade Zone Tariff No. 2; (2) adopt Order__________ replacing Port of Los Angeles Foreign-Trade Zone Tariff No. 1 with Port of Los Angeles Foreign-Trade Zone Tariff No. 2; (3) direct the Board Secretary to transmit to the City Council for approval the Order and the Ordinance approving and authorizing the proposed Port of Los Angeles Foreign-Trade Zone Tariff No. 2 pursuant to City Charter 653(a); and (4) after the effective date of the Ordinance, authorize the Board Secretary to transmit the Order and Ordinance to the Foreign-Trade Zone Manager for implementation and posting to the Port of Los Angeles website.
Media Relations
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is proposing to terminate Agreement No. 12-3067 with Creative Capital, Inc., Irvine, California, due to consultant resignation, and approve the first amendments of the remaining three as-needed writing professional services agreements – DDK Communications, Los Alamitos, California; Make Over Earth, Burbank, California; Natalie Shore-Peterson, Long Beach, California. The four writing firms were approved by the Board of Harbor Commissioners (Board) in June 2012 for three-year agreements each. These consultants currently provide as-needed writing professional services in support of the Harbor Department’s shipping industry, business development, environmental, tourism, media and public outreach programs. The proposed amendments would establish a pool of funds for the three remaining firms for the two-year balance of their three year terms. As writing assignments are required, the Executive Director or a designee will continue to approve each assignment on a per project basis contingent upon available funding. In June 2012 the total funding authority approved for the four firms was a combined $600,000 or $315,000 for Creative Capital, $135,000 for Make Over Earth, and $75,000 each for DDK Communications and Natalie Shore Peterson. The total amount to be spent over the next two years ($400,000 or $200,000 each fiscal year) approved in June 2012 remains unchanged. The consultant pool of funds allows for more flexibility to use budgeted funds with any of the three approved consulting firms based on the firm’s availability and expertise. Other Harbor Department divisions, the Office of the Controller and Los Angeles World Airports (LAWA) use consultant pools. Due to the resignation of Creative Capital, Inc., staff is recommending the Board terminate Agreement No. 12-3067 with Creative Capital, Inc., and approve the first amendments of the remaining three as-needed writing professional services agreements to establish a consultant pool of funds.
Recommendation: Board resolve to (1) terminate Agreement No. 12-3067 with Creative Capital, Inc., with an effective termination date of February 1, 2013; (2) approve the First Amendment to Agreement No. 12-3069 between the Harbor Department and DDK Communications to establish a consultant pool of funds, with an effective date of February 1, 2013; (3) approve the First Amendment to Agreement No. 12-7331 between the Harbor Department and Make Over Earth to establish a consultant pool of funds, with an effective date of February 1, 2013; (4) approve the First Amendment to Agreement No. 12-3070 with Natalie Shore-Peterson to establish a consultant pool of funds, with an effective date of February 1, 2013; (5) ratify the amendment commencement date of February 1, 2013 and expenses incurred from February 1, 2013 until the date of execution by the Harbor Department; (6) authorize the Executive Director to execute and the Board Secretary to attest to the Amendments; and (7) adopt Resolution No. ____________.
Public Relations
Transmittal 1
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is proposing to enter into an agreement with International Lobster Festivals, Inc., 1072 Via Cordova, San Pedro, CA 90732, to act as promoter and organizer of the Annual Port of Los Angeles Lobster Festival held in Mid-September of each year. The agreement begins with the 2013 event and includes an option for the Harbor Department to extend for one additional year with a commitment of $35,000 per year, which provides the Port of Los Angeles with title sponsorship, for a total of $70,000 over two years.
Recommendation: Board resolve to (1) find that in accordance with the Los Angeles City Charter Section 1022, the services required can be performed more feasibly by an outside contractor than by City Employees; (2) find that the work is of a specialized and temporary nature which can be performed more feasibly by an outside contractor; (3) find that the proposed event sponsorship is consistent with the criteria of the Board-approved Sponsorship/Hosting Policy; (4) authorize the Executive Director to execute and the Board Secretary to attest to the agreement with International Lobster Festivals, Inc. for a one year plus one additional year option at a not-to-exceed amount of $70,000 for the term of the agreement; and (5) adopt Resolution No. ____________.
Real Estate
SUMMARY: As part of the Alameda Corridor project, the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) jointly acquired railroad properties between downtown Los Angeles and the San Pedro Bay and now manage and maintain such properties. Harbor Department staff seeks approval of the proposed non-exclusive Joint Revocable Permit (JRP) among the Harbor Department, POLB, and the County Sanitation District No. 2 of Los Angeles County (County Sanitation District) for the installation of a 90” sewer pipeline. The proposed sewer pipeline is being installed as an auxiliary pipeline that will handle a portion of the sewage currently flowing through an existing sewer pipeline in the same vicinity. The proposed pipeline will cross through a small section of the jointly-owned right-of-way (ROW) along the Alameda Corridor, located between Lomita Boulevard and Watson Road.
Recommendation: Board resolve to (1) approve the proposed Joint Revocable Permit with the County Sanitation District No. 2 of Los Angeles County; (2) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Joint Revocable Permit; and (3) adopt Resolution No. ____________.
REGULAR ITEMS (5 - 7)
Business & Trade Development
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
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.
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
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.
Environmental
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: On November 18, 2010, the City of Los Angeles Harbor Department (Harbor Department) entered into Agreement No. 10-2920 (Project Grant Agreement) with the California Air Resources Board (CARB) to partially fund the demonstration of a Tier IV Diesel Particulate Matter (DPM) Retrofit System on a Tier III Genset Switcher Locomotive (Project) to be operated by Union Pacific Railroad. The Harbor Department also entered into Agreement No. 10-2919 (Subrecipient Agreement) with Johnson Matthey, Inc. (Johnson Matthey) located in Malvern, Pennsylvania, to fulfill the technical aspects of the Project's scope of work. Due to delays in durability and emissions testing, a Second Amendment to the Project Grant Agreement and the Subrecipient Agreement were necessary to complete the Project. With the durability hours now completed, a Third Amendment for both Agreements is now necessary to extend the term for an additional six months to allow completion of the emissions testing and final report. There is no additional cost. The scope of work and the total grant amount remain the same. The total contract term of the Project Grant Agreement exceeds three years but does not require City Council approval because the agreement is with a public agency. The total contract term of the Subrecipient agreement does not exceed three years. In addition, on November 9, 2011, the Harbor Department entered into Agreement No.11-3020 with Johnson Matthey for CARB verification of the Tier IV Locomotive DPF used in the Project as part of the Technology Advancement Program (TAP). A First Amendment to this Agreement is necessary to extend the agreement term for one year to allow adequate time for CARB verification. There is no additional cost. The scope of work and the total grant amount remain the same. The total contract term of TAP Agreement No.11-3020 does not exceed three years. Staff is recommending the Board of Harbor Commissioners (Board) approve the Third Amendment to the Project Grant Agreement, Third Amendment to the Subrecipient Agreement and the First Amendment to the TAP Agreement.
Recommendation: Board resolve to (1) approve the Third Amendment to Agreement No. 10-2920 between the Harbor Department and the California Air Resources Board extending the contract term for six months to December 2, 2013, for a total contract term of three (3) years, five (5) months and four (4) days; (2) Approve the Third Amendment to Subrecipient Agreement No. 10-2919 between the Harbor Department and Johnson Matthey, Inc. extending the contract term for six months to December 2, 2013; for a total contract term of two (2) years, eleven (11) months and twenty-three (23) days; (3) approve the First Amendment to the TAP Agreement No.11-3020 between the Harbor Department and Johnson Matthey, Inc. extending the contract term for one year to November 8, 2014, for a total contract term of two (2) years, eleven (11) months and thirty (30) days; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Amendments for and on behalf of the Board; and (5) 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 LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. L.A. Harbor Sportfishing, Los Angeles Superior Court Case No. NC044605
AGENDA OF THE SPECIAL MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, MAY 16, 2013 IMMEDIATELY FOLLOWING THE
ADJOURNMENT OF THE REGULAR MEETING AT 8:30 A.M.
PORT OF LOS ANGELES ADMINISTRATION BUILDING
425 S. PALOS VERDES STREET
SAN PEDRO, CA 90731
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
G. PRESENTATIONS
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEM NO. 1
Commission Office
Recommendation: Adoption of Resolution approving travel for Vice President David Arian for a Business Development trip to Taipei, Taiwan on May 27, 2013 thru May 30, 2013.
AGENDA OF THE SPECIAL MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, MAY 16, 2013 IMMEDIATELY FOLLOWING THE
ADJOURNMENT OF THE SPECIAL MEETING
PORT OF LOS ANGELES ADMINISTRATION BUILDING
425 S. PALOS VERDES STREET
SAN PEDRO, CA 90731
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. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
REGULAR ITEM NO. 1
Government Affairs
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The Government Affairs Division is requesting that Agreement No. 10-2905 between the City of Los Angeles Harbor Department (Harbor Department) and Alcalde & Fay, Ltd., a Commonwealth of Virginia Corporation (Consultant), be terminated pursuant to Article X, Termination Provision, of the Agreement. Article X states that the Los Angeles Board of Harbor Commissioners (Board) has the right to terminate and cancel all or any part of the Agreement for any reason upon giving the Consultant ten (10) days advance, written notice.
Recommendation: Board resolve to (1) approve the Termination to Agreement No. 10-2905 with Alcalde & Fay, Ltd.; (2) authorize the Executive Director to execute and transmit a written notice of termination to the Consultant, effective May 28, 2013; and (3) adopt Resolution No. ____________.