Regular Agenda - June 20, 2013
AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, JUNE 20, 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.
B. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS
C. EXECUTIVE DIRECTOR REMARKS
1. Accomplishments
2. CMMA Award: Lighthouse Restoration Project - Gary Dwight
D. REPORTS OF THE COMMISSIONERS
E. BOARD COMMITTEE REPORTS
F. APPROVAL OF MINUTES
Minutes of the Regular Meetings of April 4, 2013 and May 2, 2013 for approval.
G. PRESENTATIONS
Chassis Working Group Update
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1- 3)
Engineering
1. Re: RESOLUTION NO. ____________ - FUNDING INCREASE FOR THE PORT OF LOS ANGELES CHANNEL DEEPENING PROJECT - AGREEMENT NO. 2236
SUMMARY: Additional funding in the amount of $2.5 million is requested to maintain the Port of Los Angeles (Port) Main Channel at -53 feet mean lower low water. Total funding for the Channel Deepening Project is requested to increase from $305.5 million to $308 million. The funds will be forwarded to the Department of the Army, US Army Corps of Engineers (Corps), as requested, to fund future maintenance dredging in accordance with the amended Project Cooperation Agreement (PCA).
Recommendation: Board resolve to (1) authorize the increase of funding for the PCA from $305.5 million to $308 million and authorize the Executive Director to transfer funds as requested by the Department of the Army, US Army Corps of Engineers; and (2) adopt Resolution No.____________.
Environmental
Transmittal 1a
Transmittal 1b
Transmittal 1c
Transmittal 1d
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: The Environmental Management Division staff recommends approval of Agreements with AMEC Environment and Infrastructure, Anchor QEA, L.P., Merkel & Associates, Inc., and Environ International Corporation, to provide technical support for water and sediment quality programs, biological resources management and regulatory program development and compliance. This action will authorize four as-needed agreements for a three-year contract term each and for a combined total not-to-exceed amount of $10,000,000.
Recommendation: Board resolve to (1) find that in accordance with the City Charter Section 1022, work under the subject Agreement can be performed more feasibly by independent consultants rather than by City employees; (2) approve the Agreement with AMEC Environment and Infrastructure for a term of three years for the total not-to-exceed amount of $3,800,000; (3) approve the Agreement with Anchor QEA, L.P. for a term of three years for the total not-to-exceed amount of $2,500,000; (4) approve the Agreement with Environ International Corporation for a term of three years for the total not-to-exceed amount of $3,200,000; (5) approve the Agreement with Merkel & Associates, Inc. for a term of three years for the total not-to-exceed amount of $500,000; (6) authorize the Executive Director and the Board Secretary to execute and attest to said Agreement for and on behalf of the Board; and (7) adopt Resolution No.____________.
Real Estate
3. Re: ORDER NO. ____________ - APPROVE CONSENT TO HYPOTHECATION OF PERMIT NO. 520 WITH LA SKY HARBOR, LLC, TO INDUSTRIAL AND COMMERCIAL BANK OF CHINA (USA), A NATIONAL BANKING ASSOCIATION
Transmittal 1
SUMMARY: Permit No. 520 (Permit) is a 50-year permit expiring on December 12, 2046, which grants LA Sky Harbor, LLC. (LASH) use of approximately 2.54 acres of City of Los Angeles Harbor Department (Harbor Department) land at Cabrillo Marina for constructing, operating and maintaining facilities for a hotel; dinner and convenience restaurants; banquet facilities; rental of office space; general retail sales; and incidental purposes. The hotel is located at 2800 Via Cabrillo Marina, San Pedro, and is currently licensed as the Doubletree by Hilton Hotel San Pedro – Port of Los Angeles (Doubletree). It is proposed that the Board of Harbor Commissioners (Board) consent to the hypothecation of Permit No. 520 to Industrial and Commercial Bank of China (USA), NA. (ICBC), as requested by LASH and its lender ICBC. Board approval will allow LASH to acquire funding from ICBC, in order to remodel the Doubletree and have working capital, among other things.
Recommendation: Board resolve to (1) approve the Consent to Hypothecation of Permit No. 520 to Industrial and Commercial Bank of China (USA), National Association (NA).; (2) authorize the Executive Director to execute and the Board Secretary to attest to the Consent to Hypothecation of Permit No. 520 to Industrial and Commercial Bank of China (USA), NA.; and (3) adopt Order No.____________.
REGULAR ITEMS (4 - 9)
Environmental
4. Re: RESOLUTION NO. ____________ - APPROVAL TO SUBMIT APPLICATIONS FOR FUNDING TO THE NATIONAL DIESEL EMISSION REDUCTION PROGRAM
SUMMARY: The Diesel Emissions Reduction Program (DERA) was created under the Energy Policy Act of 2005. DERA gives the United States Environmental Protection Agency (EPA) new grant and loan authority for promoting diesel emission reductions and authorizing appropriations. In December 2011, DERA grants were reauthorized for fiscal year (FY) 2012 through FY 2016 and $9 million has been appropriated for FY2013. For EPA Region 9, proposals from regional, state, local or port agencies requesting funding between $600,000 and $1,200,000 will be considered. The City of Los Angeles Harbor Department (Harbor Department) intends to submit applications for funding for various tenant projects. Applications are due June 25, 2013, with award notification expected to begin in July/August 2013. Under the program’s requirements, in order to receive awarded funding there is a September 30, 2015 deadline to: (1) complete projects that have been selected for funding; and (2) expend funds awarded to selected projects. The Harbor Department is seeking the ability to apply for and accept EPA DERA funding.
Recommendation: Board resolve to (1) authorize and direct the Executive Director to apply for funding from the 2013 Diesel Emission Reduction Act Assistance Program for the City of Los Angeles Harbor Department tenant projects; (2) authorize and direct the Executive Director to negotiate and return to the Board for approval the Diesel Emission Reduction Act funding assistance agreements with the United States Environmental Protection Agency for Diesel Emission Reduction Act monies awarded to the City of Los Angeles Harbor Department; consistent with the provisions of this Board Letter and the United States Environmental Protection Agency Diesel Emission Reduction Act Request for Proposals, subject to approval of the City Attorney as to form; (3) authorize and direct the Executive Director to negotiate and return to the Board for approval agreements with the City of Los Angeles Harbor Department tenants regarding tenant projects awarded Diesel Emission Reduction Act funds, with no cost to the Harbor Department, consistent with the provisions of this Board Letter and the United States Environmental Protection Agency Diesel Emission Reduction Act Request for Proposals, subject to approval of the City Attorney as to form; and (4) adopt Resolution No.____________.
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Transmittal 7
Transmittal 8
SUMMARY: On March 30, 2011, the Board of Harbor Commissioners (Board) approved separate as-needed agreements with eight consultants for on-call environmental assessment and site restoration services to the City of Los Angeles Harbor Department (Harbor Department). These agreements (described below, and referred to herein as “Agreement†or together as “Agreementsâ€) collectively provide contractual authority for up to $18,000,000 in services for a three-year period that ends in May 2014. The $18,000,000 was only designed to provide maximum expenditure authority for these services, and was an estimate of what staff projected in environmental assessment and site restoration expenditures over this three-year period. Actual expenditures for environmental assessment and site restoration are only carried out under approved budgets each year for operational, capital or environmental liability expenses.
During the past two years, unanticipated extensive expenses for key Harbor Department capital and environmental liability projects have caused the $18,000,000 funding authority for the eight on-call Agreements to become nearly exhausted, even though almost one year remains in their term. Amendments to the Agreements are therefore needed to provide additional contractual authority to allow budgeted services for FY 13/14 to be carried out through May, 2014. As a result, staff requests an increase in the combined $18,000,000 not-to-exceed amounts by another $6,600,000 for a total expenditure of $24,600,000. Note that approval of the amendments only increases the contractual authority under each Agreement, not the Harbor Department budget. Funds for anticipated environmental assessment and site restoration expenses to be carried out under these Agreements are available in the Harbor Department FY 13/14 budget. The scope and contract term for each Agreement would remain unchanged.
Recommendation: Board resolve to (1) approve the First Amendment to Agreement No. 11-2959 with Tetra Tech, Inc. (Transmittal 1) to increase the contract amount by $2,000,000 for the total not-to-exceed amount of $7,400,000; (2) approve the First Amendment to Agreement No. 11-2960 with The Source Group, Inc. (Transmittal 2) to increase the contract amount by $2,450,000 for the total not-to-exceed amount of $6,250,000; (3) approve the First Amendment to Agreement No. 11-2961 with WorleyParsons Group, Inc. (Transmittal 3) to increase the contract amount by $200,000 for the total not-to-exceed amount of $2,100,000; (4) approve the First Amendment to Agreement No. 11-2962 with ERM-West, Inc. (Transmittal 4) to increase the contract amount by $400,000 for the total not-to-exceed amount of $1,900,000; (5) approve the First Amendment to Agreement No. 11-2963 with Pacific Edge Engineering, Inc. (Transmittal 5) to increase the contract amount by $500,000 for the total not-to-exceed amount of $2,000,000; (6) approve the First Amendment to Agreement No. 11-2964 with Ninyo & Moore Geotechnical & Environmental Sciences Consultants (Transmittal 6) to increase the contract amount by $450,000 for the total not-to-exceed amount of $1,950,000; (7) approved the First Amendment to Agreement No. 11-2965 with Leighton Consulting, Inc. (Transmittal 7) to increase the contract amount by $500,000 for the total not-to-exceed amount of $1,900,000; (8) approve the First Amendment to Agreement No. 11-2966 with Eco & Associates, Inc. (Transmittal 8) to increase the contract amount by $100,000 for the total not-to-exceed amount of $1,100,000; (9) authorize the Executive Director to execute and the Board Secretary to attest to said Amendments for and on behalf of the Board; and (10) adopt Resolution No. __________.
6. Re: RESOLUTION NO. ____________ - FIRST AMENDMENT TO THREE EMERGENCY RESPONSE AND HAZARDOUS WASTE MANAGEMENT AGREEMENTS
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: In December, 2010 the Board of Harbor Commissioners (Board) approved separate as-needed Agreements with three consultants for on-call emergency response and hazardous waste management services to the City of Los Angeles Harbor Department (Harbor Department). These Agreements (described below, and referred to herein to as “Agreement†or “Agreementsâ€) collectively provide contractual authority for up to $6,000,000 in services, which was estimated to be about $2,000,000 per year for a three-year period that ends in December, 2013. Note that approval of the Agreements did not authorize actual expenditures for services by these consultants. The actual expenditures must come from yearly budget authorizations which are approved separately for emergency response and hazardous waste management activities each year in the Harbor Department budget. By its nature, emergency response to spills and releases is unpredictable. Extensive emergency response actions and hazardous waste management expenses over the past two years have exhausted the $6,000,000 funding authority in the three on-call contracts, with roughly seven months remaining in their contract term. Amendments to the Agreements are needed to provide additional contractual authority to allow these services through December, 2013. Based on projected emergency response services needed by the Harbor Department in the next seven months, staff recommends increasing the combined not-to-exceed amounts by $1,250,000, from $6,000,000 to a total of $7,250,000. Note that approval of the Amendments only increases the contractual authority under each Agreement, not the Harbor Department budget. Funds for anticipated expenses for this work to be carried out under these Agreements are available in the Harbor Department FY 13/14 budget. The scope and contract term for each Agreement would remain unchanged.
Recommendation: Board resolve to (1) approve the First Amendment to Agreement No. 10-2928 with Ocean Blue Environmental Services, Inc. (Transmittal 1) to increase the contract amount by $375,000 for the total not-to-exceed amount of $2,375,000; (2) approve the First Amendment to Agreement No. 10-2929 with Clean Harbors (Transmittal 2) to increase the contract amount by $500,000 for the total not-to-exceed amount of $2,500,000; (3) approve the First Amendment to Agreement No. 10-2930 with Ancon Marine (Transmittal 3) to increase the contract amount by $375,000 for the total not-to-exceed amount of $2,375,000; (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.________.
Real Estate
7. Re: ORDER NO. ____________ - RESETTING COMPENSATION UNDER CONCESSION AGREEMENT NO. 521 WITH VIA CABRILLO MARINA 2500, LLC
Transmittal 1
SUMMARY: Concession Agreement No. 521 (CA 521) is a 50-year agreement which grants Via Cabrillo Marina 2500, LLC, a California Limited Liability Company (Via Cabrillo), use of approximately 39,531 square feet (s.f.) of City of Los Angeles Harbor Department (Harbor Department) land at 2500 Via Cabrillo Marina, San Pedro, for constructing, operating, and maintaining facilities for a convenience restaurant; charter vessel facility; vessel brokerage and insurance; sale of marine hardware and sundry items; rental of marine-related office space; marina-related retail sales; and incidental purposes. Compensation for the five year period of September 1, 2012 through August 31, 2017 is proposed to start at $66,526 annually, based on the same rate structure as the previous five-year compensation period, with a similar annual Consumer Price Index for All Items, All Urban Communities for the Los Angeles - Riverside and Orange Counties (CPI-U) adjustments each July 1.
Recommendation: Board resolve to (1) approve the Order resetting compensation under Concession Agreement No. 521 with Via Cabrillo Marina 2500, LLC., for the five-year period of September 1, 2012 through August 31, 2017; (2) authorize the Board Secretary to attest to the Order resetting compensation to be paid by Via Cabrillo Marina 2500, LLC., pursuant to Section 1(13) of the First Amendment to Concession Agreement No. 521; and (3) adopt Order No.____________.
Transmittal 1
SUMMARY: Concession Agreement No. 521 (CA 521) is a 50-year agreement which grants Via Cabrillo Marina 2500, LLC, a California Limited Liability Company (Via Cabrillo), use of approximately 39,531 square feet (s.f.) of City of Los Angeles Harbor Department (Harbor Department) land at 2500 Via Cabrillo Marina, San Pedro, for constructing, operating, and maintaining facilities for a convenience restaurant charter vessel facility; vessel brokerage and insurance; sale of marine hardware and sundry items; rental of marine-related office space; marina-related retail sales; and incidental purposes. The proposed Third Amendment to CA 521 will eliminate the percentage rent requirement, while retaining the annual fixed rental compensation tied to the Consumer Price Index, and amend the use requirements to reflect the current marine-related office space use of the improvement.
Recommendation: Board resolve to (1) approve the proposed Third Amendment to Concession Agreement No. 521 with Via Cabrillo Marina 2500, LLC; (2) direct the Board Secretary to transmit the Third Amendment to Concession Agreement No. 521 to the City Council for approval pursuant to Section 606 of the City Charter; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Third Amendment to Concession Agreement No. 521 upon approval by City Council; and (4) adopt Order No.____________.
Transmittal 1
SUMMARY: Concession Agreement No. 791 (CA 791) grants California Yacht Marina-Cabrillo, LLC (California Yacht) the use of the City of Los Angeles Harbor Department (Harbor Department) property located within Phase I of the West Channel Development Area in San Pedro. CA 791 provides for the construction, operation, and maintenance of a facility for a recreational vessel marina, Cabrillo Community Building, and incidental purposes. This proposed Order resetting compensation covers the five-year period of January 1, 2013 through December 31, 2017. The proposed Order resetting compensation is consistent with the methodology for calculating minimum annual rent (MAR) established in the previous compensation reset for CA 791, with actual compensation rates being recalculated annually based upon that methodology. It is proposed that the MAR, effective January 1, 2013, be set at $959,830 and adjusted every year thereafter.
Recommendation: Board resolve to (1) approve the Order resetting compensation under Concession Agreement No. 791 with California Yacht Marina-Cabrillo, LLC for the five-year period of January 1, 2013 through December 31, 2017; (2) authorize the Board Secretary to attest to the Order resetting compensation to be paid by California Yacht Marina-Cabrillo, LLC, pursuant to Section 4(l) of Concession Agreement No. 791; and (3) adopt Order No.____________.
I. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
American Trucking Associations, Inc. v. City of Los Angeles, et al., United States District Court Case No. 08-04920-CAS, and United States Court of Appeals for the Ninth Circuit Case No. 08-56503
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
California Cartage Company, Inc., et al. v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS143333
City of Long Beach v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS143356
Coalition for a Safe Environment, et al. v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS143458
East Yard Communities for Environmental Justice, et al. v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS143454
Fast Lane Transportation, Inc. v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS143332
Long Beach Unified School District v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS143448
South Coast Air Quality Management District v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS143381
3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (d)(2) of Government Code Section 54956.9)
Complaint filed with U.S. Department of Transportation under Title VI of the Civil Rights Act of 1964 and 49 Code of Federal Regulations Part 21
Claimants: Natural Resources Defense Council, Elena Rodriguez, Evelyn Deloris Knight, East Yard Communities for Environmental Justice, the Coalition for Clean Air, Century Villages at Cabrillo
Agency Claimed Against: City of Los Angeles, Board of Harbor Commissioners
4. 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.
5. 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
6. 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