REGULAR MEETING AGENDA
THURSDAY, JUNE 16, 2016 AT 8:30 A.M.
Board of Harbor Commissioners
President, Ambassador Vilma S. Martinez
Vice President David Arian
Commissioner Patricia Castellanos
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
__________________________________________________________________________________
ORDER OF BUSINESS
OPEN SESSION
A. Roll Call
B. Executive Director Remarks
C. Comments from the Public on Non-Agenda Items
D. Report from the Neighborhood Council Representatives
E. Reports of the Commissioners
F. Board Committee Reports
G. Approval of the Minutes
H. Presentation
1. At-Berth Emission Capture Technology - Part 2
2. Community Investments Grants FY 16/17
I. Level I Coastal Development Permit Report
J. Special Order of the Day - Solar Program
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Second Amendment to Agreement No. 15-3354 (Operating Agreement) with Hecate Energy Harborside LLC (Hecate) to change and update the list of approved installation sites outlined under Exhibit B and Exhibit F of the Operating Agreement. On March 27, 2016, staff presented the First Amendment to the Operating Agreement to the Board of Harbor Commissioners (Board) requesting that four sites be added in place of six original ground-mount installations that are unfeasible due to lengthy California Environmental Quality Act review process. Conditional Use Permits (CUP) required for those sites would not allow Hecate to complete installations before the deadline imposed by the Los Angeles Department of Water and Power (LADWP) Feed-In Tariff (FiT 50) program. The Board approved two of the four requested installation sites, resulting in a shortfall of 3.93 megawatts (MW) of the 10 MW prescribed under the Operating Agreement.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2 (f) of the Los Angeles City CEQA Guidelines; (2) approve the Second Amendment to Operating Agreement No. 15-3354 with Hecate Energy Harborside LLC; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment to Operating Agreement No. 15-3354; (4) authorize the Executive Director to append written legal descriptions, which will accompany the visual maps shown in Exhibit B-2; and (5) adopt Resolution No.___________.
Level II Non-Appealable Coastal Development Permit
Public Hearing
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 and Strategy
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve a Level II non-appealable Coastal Development Permit (CDP) No. 16-12 to Hecate Energy LLC DBA Hecate Energy Harborside LLC (Hecate) for the installation of parking lot carports and photovoltaic systems at three sites: 1) Cabrillo Way Marina, 2) Catalina Express, and 3) the Pacific Maritime Association Overflow Parking Lot. On June 16, 2016, an amendment to the Operating Agreement between Hecate and the City of Los Angeles Harbor Department (Harbor Department) will be brought before the Board that includes changes to the list of installation sites, including four new solar carport sites. If the Board approves this amendment, then CDPs will be required for these new installations. Because one of the four new sites was identified after the deadline for giving public notice of a Level II CDP public hearing, only the three sites listed above can be considered at the June 16, 2016 meeting, with the fourth site coming before the Board at a future date. The Harbor Department is not responsible for any construction or maintenance costs of the solar panels at any location.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of CEQA under Public Resources Code Division 13, Section 21080.35 as determined by the Director of Environmental Management; (2) hold a public hearing for the proposed Coastal Development Permit No. 16-12, a Level II non-appealable permit; (3) find that the proposed project conforms with the Port of Los Angeles certified Port Master Plan and find that this project will have no significant adverse environmental impacts as provided in the Notice of Exemption prepared pursuant to the California Environmental Quality Act; (4) upon closure of the public hearing and approval of the second amendment to the Operating Agreement, resolve to approve the issuance of Coastal Development Permit No. 16-12, consistent with the project description listed on Application for Port Permit No. 160531-074, and direct the Director of Planning and Strategy to issue said permit; and (5) adopt Resolution No.___________.
K. Board Reports of the Executive Director
Consent Items (3 - 7)
Cargo Marketing
3. RESOLUTION NO.____________ APPROVAL OF FIRST AMENDMENT OF FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 11-2985 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND KOMAR DISTRIBUTION SERVICES FTZ 202, SITE 20B
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 Komar Distribution Services (Komar) to exercise its first renewal option to extend the term of its FTZ Operating Agreement to continue operating its warehouse within FTZ 202, Site 20B located at 11850 Riverside Drive, Mira Loma, California 91752. Site 20B is a 26.97-acre property including a warehouse located approximately 60 miles north-east of the Port of Los Angeles. This first renewal includes updated Indemnification and Insurance provisions language. All remaining terms and conditions of the Agreement shall remain in full force and effect, except as amended herein.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1 (14), of the Los Angeles City CEQA Guidelines; (2) approve the proposed First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 11-2985 between the City of Los Angeles Harbor Department and Komar Distribution Services; (3) direct the Board Secretary to transmit the proposed First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 11-2985 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 First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 11-2985; and (5) adopt Resolution No.____________.
Environmental Management
4. RESOLUTION NO. __________ - BUDGETARY TRANSFER TO RECORD THE REMEDIATION OBLIGATION FOR THE FORMER WAREHOUSE 12, NEW DOCK PUMP STATION, SAN PEDRO BOAT WORKS, AND SOUTHWEST MARINE PROJECTS
Transmittal 1
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve a budgetary transfer in the amount of $4,597,205 from the Capital Budget to the Operating Expense Budget. The transfer will allow the City of Los Angeles Harbor Department (Harbor Department) to record anticipated remediation activities for the Former Warehouse 12 ($932,680), New Dock Pump Station ($600,000), San Pedro Boat Works ($411,000), and Southwest Marine ($3,250,000) projects. Of this total amount of $5,193,680, the Board previously approved $596,475 on April 14, 2016, as part of Financial Management’s consolidated mid-year transfer. In compliance with the Government Accounting Standards Board (GASB) Statement No. 49 (GASB 49), the total cost of the remediation for these projects will be recognized as an expense and the future spending obligations will be reflected as a liability in the Harbor Department’s balance sheet. This budgetary transfer requires the approval of the Board, as well as the Mayor, in compliance with the Los Angeles City Charter Section 343(b). The Harbor Department is financially responsible for these costs.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve a $4,597,205 budgetary transfer from the Adopted Capital Budget, Account 13807, Center 1000, Program 000 to the Operating Expense Budget Account 59960, Center 0330, Program 000 to record the remediation obligation for the Former Warehouse 12, New Dock Pump Station, San Pedro Boat Works, and Southwest Marine projects in compliance with Government Accounting Standards Board Statement No. 49; (3) direct the Board Secretary to transmit the Resolution to the Mayor for approval pursuant to Section 343(b) of the City Charter; (4) direct the Board Secretary to notify the City Clerk of such transfer pursuant to Section 343(b) of the City Charter at the time such transfer is made; and (5) adopt Resolution No.____________.
Information Technology
Transmittal 1
Transmittal 2
Transmittal 3
Summary: The City of Los Angeles Harbor Department (Harbor Department) staff is requesting approval to enter into an Agreement with Trinus Corporation (Trinus) to provide as-needed support services for the Harbor Department's SharePoint system. The SharePoint system provides the underlying technology for the iPOLA intranet, which is the Harbor Department’s internal communication portal. The term of the proposed Agreement is three years at a not-to-exceed amount of $300,000. The recommendation to select Trinus is based on a competitive Request for Proposal (RFP) process performed by the Harbor Department. Trinus is a qualified Small Business Enterprise (SBE) and a qualified Local Business Enterprise (LBE). Trinus is located in Glendale, California. SharePoint support is the financial responsibility of the Harbor Department.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) find that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (3) approve the Agreement with Trinus Corporation for a term of three years at an amount not-toÂexceed $300,000; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement; and (5) adopt Resolution No.___________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the proposed Eighth Amendment to Permit No. 733 with Eagle Marine Services. LTD. (EMS) to provide a one-time credit to EMS in the amount of $99,354 to be applied toward rent due and payable for the month immediately following the month in which the amendment becomes effective. After a successful vessel call at Pier 400 at Port of Los Angeles (Port), the 18,000 Twenty-foot Equivalent Unit (TEU) container vessel CMA-CGM Benjamin Franklin (Benjamin Franklin) made her first call at the EMS container terminal Pier 300 on April 22, 2016. As a result of this call, incremental revenue in the amount of $612,177 was generated. CMA-CGM, an invitee of EMS, has requested the City of Los Angeles Harbor Department (Harbor Department) to assist them with deferring the cost of bringing the Benjamin Franklin to the Port. To accommodate this request, staff requests providing a one-time $29.00 per loaded container cost reduction on all CMA-CGM (and affiliated companies) containers moved during this single call. The amount of this reduction to the Harbor Department is $99,354.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Eighth Amendment to Permit No. 733 with Eagle Marine Services, LTD.; (3) direct the Board Secretary to transmit the Eighth Amendment to the City Council for approval pursuant to Charter Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Eighth Amendment upon approval by City Council; and (5) adopt Resolution No.____________.
Contracts & Purchasing
Summary: Staff requests that the Board of Harbor Commissioners (Board) authorize a new process of approvals for the salvage of City personal property. The new process will start with a request from the division requesting an item to be salvaged, include approval by a Deputy Director and the Director of Contracts and Purchasing (also known as the Purchasing Agent), salvage of the item, and reconciliation by Accounting. This action replaces a salvage policy originally approved in 1977 (Resolution 4237). Los Angeles City Charter Sections 385, 602 and 651(a) and Administrative Code Chapter 2, Article 1, Sections 7.70 et seq. grants City Departments the ability to salvage personal property belonging to the City of Los Angeles. Section 7.71(b) specifically grants the Board the authority to salvage City property under the control of the Harbor Department. The most common items for salvage include cars, trucks, small boats, radios, computer equipment and pieces of scrap metal that are no longer suitable for use by the Harbor Department due to age, condition, or lack of use.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) rescind Resolution 4237 which authorizes a Salvage Committee to determine whether City property is no longer required, and either sell the property or request the Department of General Services to sell the property; and (3) adopt Resolution No.___________.
Regular Item No. (8)
Port Pilots
8. RESOLUTION NO.____________ - APPROVING TEMPORARY AND PERMANENT ORDERS AMENDING PORT OF LOS ANGELES TARIFF NO. 4, SECTION THREE, ITEM NO. 330 - "CHARGES FOR PILOTAGE"
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Summary: The City of Los Angeles Harbor Department (Harbor) requests to amend the Port of Los Angeles Tariff No. 4 (Tariff), Section Three, Item No. 330 - Charges for Pilotage. The Harbor Department provides piloting service that is available to all vessels calling at the Port of Los Angeles (Port). Per the Tariff, a sum of fees is assessed against all vessels subject to the payment of pilotage. Tariff Item No. 330 regarding Charges for Pilotage (Pilotage) is based on a vessel's tonnage and length over all plus surcharge per move. The proposed amendment is an increase that will affect the Pilotage calculation such that the Gross Registered Ton (GRT) rate would increase to $0.0060, the Surcharge per Move would increase to $100, and the Overall Length (LOA) fee and all other fee schedules related to Pilotage would be increased approximately 10 per cent, effective July 1, 2016. While this increase is projected to start balancing Los Angeles Port Pilot costs, an efficiency study will be conducted of the Pilot Service, should the study warrant additional fee modifications, those changes will be addressed and returned to the Harbor Commission for review and approval.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III, Class 1(31) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Amendment to Port of Los Angeles Tariff No. 4 revising Section Three Pilotage, Item No. 330 (b), (d), (e), (f), and (g), 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; (3) adopt Temporary Order No.___________ to amend Section 3 Pilotage, Item No. 330 (b), (d), (e), (f), and (g) in the Port of Los Angeles Tariff No. 4; (4) adopt Permanent Order No.____________ to amend Section 3 Pilotage, Item No. 330 (b),(d), (e), (f), and (g) in the Port of Los Angeles Tariff No. 4; (5) authorize the Board Secretary to certify to the adoption of the Temporary Order by the Board of Harbor Commissioners 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 City Charter Section 653(b);
(6) direct the Board Secretary to transmit to the City Council for approval of 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); (7) authorize the Board Secretary to execute the Temporary Order, Permanent Order and Ordinance amending Tariff No. 4 as stated above, and upon its publication, transmit the Orders and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website; and (8) adopt Resolution No.____________.
CLOSED SESSION
L. Closed Session Items
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 LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Martin Lovato v. City of Los Angeles, et al., United States District Court Case No. 2:15-cv-09620-ODW-JC
3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (d) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to paragraph (2) of Section 54956.9 (d) and (e) of the Government Code (one case), the facts and circumstances which might result in litigation are the letter dated March 23, 2016 from the State of California Fair Political Practices Commission to the Long Beach Office of the City Attorney and the Los Angeles Office of the City Attorney, and statements from Los Angeles County staff regarding a conflict of interest code as regards to the Operating Committee for the Alameda Corridor and the Alameda Corridor Transportation Authority.
4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (b) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (b) of
Section 54956.9 (one case).
5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. BAE Systems San Diego Ship Repair, Inc., United States District Court Case No. CV 13-8810 CBM (AGRx)
6. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (d)(2) of Government Code Section 54956.9
Receipt of Claim pursuant to Government Claims Act (one claim)
Claimant: Eagle Marine Services, Ltd.
Agency claimed against: City of Los Angeles
7. THREAT TO PUBLIC SERVICES OR FACILITIES
(Government Code Section 54957)
Consultation with: Los Angeles Port Police Chief Thomas Gaszi and Assistant Chief Michael Hillman
Location of Briefing: Port Police Building Department Operations Center, 330 S. Centre St., San Pedro, CA 90731
M. Adjournment