Agenda - July 7, 2011
AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, JULY 7, 2011 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 Kramer
Commissioner Douglas P. Krause
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. PRESENTATION
Capital Improvement Program (CIP) Status, Mike Christensen, Deputy Executive Director of Development
G. APPROVAL OF MINUTES
Minutes of the Regular Meetings of March 17, 2011, April 7, 2011, April 21, 2011 & May 5, 2011 and Special Meeting of March 17, 2011.
H. SPECIAL ORDER OF THE DAY
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.
G. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
REGULAR ITEM NO.1
Planning and Economic Development
Transmittal 5
SUMMARY: The City of Los Angeles, Bureau of Sanitation (BOS) is seeking to extend their previously approved coastal development permit for the Terminal Island Renewable Energy (TIRE) Demonstration Project at the Terminal Island Wastewater Treatment Plant (TIWTP). The TIRE Project injects bio-solids underground with the goal of producing methane gas, a renewable energy source. Staff is recommending the Board of Harbor Commissioners (Board) approve Coastal Development Permit (CDP) No. 11-05, a Level II, appealable permit for the proposed project for a period of one year.
Recommendation: Board resolve to (1) hold a public hearing for the proposed Level II Coastal Development Permit; (2) find that the proposed project is consistent with the Port Master Plan and the California Coastal Act of 1976, as amended, and find that this project will have no significant adverse environmental impacts as provided in the California Environmental Quality Act; (3) authorize the Executive Director to approve the issuance of Coastal Development Permit No. 11-05 with a Special Condition that the permit is for a one-year extension of the TIRE Project; and (4) adopt Resolution No. __________.
CONSENT ITEMS (2 - 9)
Commission Office
Recommendation: Adoption of the Resolution approving travel for Vice President David Arian to New York and Virginia on July 11 - 15, 2011.
Construction Division
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) has committed to the timely delivery of an on-dock rail yard as part of the Berths 136-147 (TraPac) Container Terminal Project. In order for the on-dock rail yard to be built, the Pier A Rail Yard must be relocated to a new location at Berth 200. The Berth 200 Rail Yard project (Project) will provide a railroad switching and classification yard including site development, an office building, a diesel engine service facility, and oil pipeline relocations. This professional services Agreement provides for construction management services for the Berth 200 Rail Yard. PB Americas, Inc., located in Los Angeles, California, is recommended to provide the required services. The Agreement amount is $4,978,488, and the Agreement duration is three years.
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 an independent consultant; (2) award the Agreement to PB Americas, Inc., in the amount of $4,978,488; and the payment be authorized from the Construction Management Services account. The Agreement duration for performance of the work will be three years; (3) authorize the Executive Director to execute and the Board Secretary to attest to this Agreement for and on behalf of the Board of Harbor Commissioners; and (4) adopt Resolution No. ____________.
SUMMARY: This contract will improve the security system along Port of Los Angeles waters in areas of San Pedro and Terminal Island by installing infrastructure by directional drilling across the Main Channel, Consolidated Channel, and Cerritos Channel. Completion of this installation is critical to port security in order to create a secure and redundant pathway of communication in the event of an emergency or a failure in the existing wireless communication system. The lowest responsive and responsible bidder is ARB, Inc., located in Lake Forest, CA. The contract amount plus a 15% contingency is $6,808,368, and the contract duration is 210 calendar days. This project is federally funded under the 2009 American Recovery and Reinvestment Act (ARRA) Port Security Grant Program up to $6,000,000.
Recommendation: Board resolve to (1) find that in accordance with the City Charter Section 1022, work under the subject contract can be performed more feasibly by an independent contractor rather than by City employees; (2) authorize the Executive Director to execute and the Board Secretary to attest to this contract for and on behalf of the Board; (3) award the above mentioned contract for Item Nos. 1 through 9 of the proposal schedule to ARB, Inc. in the amount of $5,920,320; that a 15% contingency not included in the original contract amount be applied for a total authorization of $6,808,368; and authorize payment from the City of Los Angeles Harbor Department Construction Account. The contract time for performance of the work will be 210 calendar days from the Notice to Proceed. 4. In accordance with City Charter 655 (g), delegate and authorize the Executive Director to adjust final bid quantities and accept the construction contract upon its completion; and (5) adopt Resolution No. ____________.
Clean Truck Program
Transmittal 3
SUMMARY: On September 18, 2008, the City of Los Angeles Harbor Department (Harbor Department), after completion of a competitive bidding process, entered into Agreement No. 08-2702 with Tetra Tech, Inc. (Tetra Tech) located in Pasadena, California for $8.4 million to provide concession and grant administration for the Clean Truck Program (CTP). The CTP commenced on October 1, 2008 with a series of progressive truck bans that gradually restrict terminal access to older trucks in favor of clean U.S. Environmental Protection Agency (EPA) 2007 emission compliant trucks. The final truck ban is scheduled to go into effect on January 1, 2012. Now, after nearly three years, the Tetra Tech Agreement is scheduled to expire on September 18, 2011, before the final January 1, CTP progressive ban. Consequently, in order to provide effective administration of the concession program through implementation of the final January 1, 2012 CTP progressive ban, Harbor Department staff requests that the Tetra Tech Agreement be extended by approximately nine months until June 30, 2012. This also will give the Harbor Department the necessary time to assess the need for future CTP administration services that will either be contracted out through another competitive bid process, or provided in-house by Harbor Department staff. The Tetra Tech Agreement scope of work will remain unchanged, and this proposed extension will not require any additional funding authority, as excess unspent funding authority remains available in the original $8.4 million Tetra Tech Agreement. The actual funds for the 9-month extension are available in the Environmental Management Division CTP budget for expenditure in fiscal year 2011/12.
Recommendation: Board resolve to (1) approve the proposed First Amendment to Agreement No. 08-2702 with Tetra Tech Inc. to extend the current contract to June 30, 2012; (2) authorize the Board Secretary to transmit the proposed Amendment to Agreement No. 08-2702 to the Los Angeles City Council for approval in accordance with Charter Section 373 and Los Angeles Administrative Code Section 10.5(a); (3) authorize the Executive Director to execute and Board Secretary to attest to the proposed Amendment to Agreement No. 08-2702 for and behalf of the Board of Harbor Commissioners upon approval by the City Council; and (4) adopt Resolution No. ____________.
Engineering Division and Contracts & Purchasing
Transmittal 2
SUMMARY: As part of the continuing renovation of the Harbor Administration Building (HAB) through the Space Needs Action Plan (SNAP) Program, the City of Los Angeles Harbor Department (Harbor Department) is proposing to upgrade the existing 30-year old lighting system on the third through fifth floors. The new system will include energy efficient lighting fixtures with dimmable ballasts and a control system to provide adequate lighting levels throughout each floor complying with Title-24 State Energy Efficient standards. This system will result in energy cost savings for the Harbor Department. Staff recommends award of Bid No. F-744 to OneSource Distributors, LLC, Santa Fe Springs, California for furnishing transportation, labor, materials, and equipment to manufacture, test, and deliver 624 eight-foot suspended lighting fixtures, 17 four-foot suspended lighting fixtures, control system software package, and floor control system at the HAB for the total equipment cost of $642,525 with installation of the equipment conducted by Harbor Department personnel.
Recommendation: Board resolve to (1) award Bid No. F-744 for the furnishing transportation, labor, materials, and equipment to manufacture, test, and deliver six hundred twenty four (624) eight-foot suspended lighting fixtures, seventeen (17) four-foot suspended lighting fixtures, control system software package, and floor control system to OneSource Distributors, LLC for total amount of $642,525; (2) authorize the Executive Director to execute and the Board Secretary to attest to said Contract for and on behalf of the Board; and (3) adopt Resolution No. ____________.
Planning and Economic Development
SUMMARY: On June 16, 2011, the California Coastal Commission (Coastal Commission) certified, as submitted, the Port of Los Angeles Master Plan Amendment No. 26 - LA Waterfront (Amendment No. 26). Two additional actions are necessary in order to finalize the certification process: (1) The Board of Harbor Commissioners (Board) must adopt the Coastal Commission's certification, and (2) the Coastal Commission accepts the Board's action as being consistent with its certification. It is recommended that the Board resolve to adopt the Coastal Commission's certification and authorize staff to inform the Coastal Commission of the Board's action.
Recommendation: Board resolve to (1) adopt the Coastal Commission's certification of Amendment No. 26 - LA Waterfront; (2) authorize the City of Los Angeles Harbor Department staff to inform the Coastal Commission of the Board's action; and (3) adopt Resolution No. ____________.
Real Estate
Transmittal 1
SUMMARY: In 2005, the City of Los Angeles Harbor Department (Harbor Department) entered into a Memorandum of Understanding (MOU) with the United States General Services Administration (GSA), under which GSA quitclaimed the property located at 300 South Ferry Street on Terminal Island to the Harbor Department. As part of that MOU, the Harbor Department agreed to lease back a portion of the facility to GSA for the operation of the United States Customs and Border Protection (CBP) laboratory for up to five years under GSA Lease No. GS-09B-1498 (GSA Lease). The five-year lease for use of the facility expired on March 22, 2010. GSA has requested a 36-month lease extension, under renegotiated terms and conditions, utilizing GSA's standard Supplemental Lease Agreement No.1 (SLA1). The proposed agreement is structured to provide an incentive to GSA to vacate the premises on or before the end of the three years.
Recommendation: Board resolve to (1) approve the three-year period lease extension under the Supplemental Lease Agreement beginning March 23, 2010, and ending March 22, 2013; (2) direct the Board Secretary to transmit the Supplemental Lease Agreement to City Council pursuant to Section 606 of the City Charter; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Supplemental Lease Agreement for lease extension; and (4) adopt Resolution No. ____________.
SUMMARY: Permit No. 309 grants ConocoPhillips (Conoco) use of approximately 48,693 square feet of City of Los Angeles Harbor Department (Harbor Department) backland in the Classification Yard, located in the north Wilmington area for the construction, maintenance, and operation of subsurface petroleum pipelines. Permit No. 309 has a 50-year term, expiring June 12, 2026, with compensation to be reset every five years. The proposed compensation is to remain unchanged for the five-year period of June 13, 2011 through June 12, 2016.
Recommendation: Board resolve to (1) adopt and approve the Order resetting compensation under Permit No. 309 with ConocoPhillips Company for the five-year period of June 13, 2011 through June 12, 2016; (2) authorize the Board Secretary to attest to the Order resetting compensation pursuant to Permit No. 309; and (3) adopt Order No. _____________.
REGULAR ITEMS (10 - 16)
Business and Trade Development
Transmittal 4
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), as the oreign-Trade Zone (FTZ) grantee, is required to justify and optimize the amount of acreage within the zone to the FTZ Board. In 2009, the FTZ Board adopted an Alternative Site Framework (ASF) for grantees that choose to participate for designating and managing general-purpose FTZ sites. ASF is the preferred operational structure of the FTZ Board, as it simplifies application requirements and improves processing time. Staff is recommending the Board of Harbor Commissioners (Board) approve the ASF Application (Application) for submission to the FTZ Board.
Recommendation: Board resolve to (1) approve the subject resolution for the Application; (2) authorize the Executive Director to sign and submit the Application to the FTZ Board; (3) upon approval by the Board of Harbor Commissioners, authorize the Executive Director to execute and the Board Secretary to attest to the proposed ASF of FTZ No. 202; and (4) adopt Resolution No._____________.
Contracts and Purchasing
11. Re: RESOLUTION NO. ___________ - MAYORAL EXECUTIVE DIRECTIVE NO. 14 - BUSINESS INCLUSION PROGRAM
SUMMARY: On January 12, 2011, the Mayor signed Executive Directive No. 14, entitled the Business Inclusion Program (BIP). The BIP was designed so that all businesses get an equal opportunity to compete for City business. While the BIP reaffirms the City's commitment to provide Minority-owned Business Enterprises and Women-owned Business Enterprises with an equal opportunity to compete for City contracts, this new program expands the City's efforts to increase contract opportunities for Disabled Veteran-owned Business Enterprises and Small Business Enterprises (SBE). The Executive Directive requests that the Board of Commissioners of each Proprietary Department adopt policies that are consistent with the BIP. As the only City Department with an existing SBE Program, the Harbor Department is already meeting the goals and objectives of the BIP through the Harbor Department's SBE Program. The Departments of Water and Power and Los Angeles World Airports are currently considering various SBE programs, including the Harbor Department’s SBE Program.
Recommendation: Board resolve to (1) reaffirm the Harbor Department's commitment to the Small Business Enterprise Program and outreach activities; (2) acknowledge that the Harbor Department's Small Business Enterprise Program and its policies and objectives are consistent with the Business Inclusion Program; (3) instruct staff to consider the feasibility of expanding the Small Business Enterprise Program to procurement contracts and to report to the Board in 120 days with recommendations; (4) instruct staff to monitor, track, and report Disabled Veteran Business Enterprise participation on Harbor Department projects; and (5) adopt Resolution No. _________.
Engineering
Transmittal 2
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is in the process of renovating its facilities. This is being done through a series of projects that will improve employee work environment, complete deferred maintenance and extend the life of the Harbor Administration Building (HAB). The projects involve the replacement and upgrading of furniture, building systems, equipment, and infrastructure. This series of projects collectively is called the Space Needs Action Plan (SNAP). The estimated cost of the program is approximately $25 million, of which slightly over $12 million has been expended to date. The SNAP is scheduled for completion in June of 2013. The Board of Harbor Commissioners (Board) has already approved various elements of the program. Staff is providing a program overview and is recommending that the Board provide conceptual approval for the overall project including the remaining program expenditures and the proposed schedule. This approval would not negate the need to bring contracts for the program components to the Board for approval. The more efficient use of space that will occur as a result of the SNAP Program will make it possible for the Business Development Bureau to return to the HAB from their current rental location at Pacific Place. This will result in an annual savings of approximately $475,000 per year to offset the cost of the program.
Recommendation: Board resolve to (1) approve the Space Needs Action Plan; and (2) adopt Resolution No. ____________.
Planning and Economic Development
SUMMARY: On March 17, 2009, the Port of Los Angeles Community Advisory Committee (PCAC) approved Recommendation No. 97, requesting an analysis be conducted to determine the capacity of local boatyards to provide maintenance service to recreational vessels from marinas in the Port of Los Angeles (Port). On January 18, 2011, PCAC approved Recommendation No. 106 supporting the Wilmington Marinas/Anchorage Road Soil Storage Site (ARSSS) Conceptual Plan and requested the Board to direct staff to: (1) initiate design of the proposed concept and establish a project schedule for completion; (2) identify funding sources and allocate funding to the project without jeopardizing existing or already defined Wilmington Waterfront projects; (3) establish construction goals and timelines for completing the project; (4) conduct a feasibility study on a proposed access road to the marinas to bypass the Henry Ford rail junction; and (5) request City of Los Angeles Harbor Department (Harbor Department) staff to continue to work with PCAC to identify other wetland opportunity sites and implement further wetland restoration. Staff recommends the Board of Harbor Commissioners (Board) approve the PCAC’s Recommendation No. 97 and PCAC's support of the Wilmington Marinas/ARSSS Conceptual Plan and Items 1, 2 and 3 of Recommendation No. 106 and deny Items 4 and 5 of the subject recommendation.
Recommendation: Board resolve to (1) consider and approve PCAC Recommendation No. 97 and authorize staff to complete the analysis of the capacity of the local boatyards to accommodate the recreational vessels moored at the Port marinas; (2) consider and approve PCAC Recommendation No. 106 recommending that the Board approve the Wilmington Marinas/ARSSS Conceptual Plan and Items 1, 2, and 3 of the subject recommendation; deny Items 4 and 5 of the recommendation; and (3) adopt Resolution No._________.
Wilmington Marina Plan Presentation
Real Estate
14. Re: RESOLUTION NO. ___________ - PROPOSED AGREEMENTS WITH ULTRAMAR, INC., AIR PRODUCTS AND CHEMICAL, INC., AND THE CITY OF LONG BEACH CONCERNING RELOCATION OF LAND RIGHTS AND INFRASTRUCTURE INTERFERING WITH FUTURE DEVELOPMENT AT BERTH 200
Transmittals
SUMMARY: The City of Long Beach (COLB), Ultramar Inc. (Ultramar) and Air Products and Chemicals, Inc. (Air Products) currently hold certain permanent easements in the vicinity of Berth 200 to support oil production and refinery operations. These easements conflict with Pacific Maritime Association - International Longshore and Warehouse Union (PMA-ILWU) hiring hall and the Pier A rail yard relocation (Berth 200 Project), as shown on Transmittal No. 3. Three separate agreements are proposed to resolve the conflicts through an exchange of property interests and the relocation of certain pipelines and utilities. Because the exchange involves the grant of a permanent interest in tidelands, the State of California (State), acting through the State Lands Commission (CSLC), is a party to each of the agreements. Under the proposed Agreements the COLB, Ultramar and Air Products will release their respective interests in the existing easements that conflict with the Berth 200 Project and in exchange, new easements will be permanently granted to each of the parties.
The COLB will relocate, at Harbor Department expense, the conflicting pipelines and utilities associated with its oil producing operations at Berth 200. The COLB agreement calls for the Harbor Department to provide advance funding for these relocations which are estimated to cost $5.8 million. There is a potential that some abandoned wells could require additional work, so include $1.5 million in overall budget, which could bring the total to $7.3 million for COLB. The Harbor Department will relocate the six Ultramar and one Air Products pipelines that serve local refineries at an estimated cost of $6 million.
Recommendation: Board resolve to (1) approve the Agreements with the City of Long Beach, Ultramar Inc., and Air Products and Chemicals, Inc.; (2) direct the Board Secretary to certify to the adoption of this Order and to transmit same to the City Council for approval and passage of the Ordinance attached as Transmittal No. 2 as provided in section 7.27 of the Administrative Code; (3) authorize and direct the Executive Director to execute the Agreements and their associated deeds and acceptances and the Secretary of the Board to attest to same on behalf of the City of Los Angeles upon this Order being approved by the City Council and the Ordinance becoming effective; (4) direct the Board Secretary to transmit the executed Agreements and their associated deeds and acceptances to the California State Lands Commission for execution; and (5) adopt Order No. _______, attached as Transmittal No. 1.
SUMMARY: Permit No. 787 between the City of Los Angeles Harbor Department (Harbor Department) and Yang Ming Marine Transport Corporation (Yang Ming) grants nonexclusive use of 186.13 acres at Berths 121-131 for container terminal operations. The proposed Order resetting compensation is for the five-year period of October 11, 2011 through October 10, 2016. Compensation for the coming period is proposed to remain unchanged from the previous five-year compensation period, as the rates for Yang Ming continue to be in a competitive range in comparison to other container terminals in the Port of Los Angeles (Port).
Recommendation: Board resolve to (1) approve the Order to reset compensation under Permit No. 787 for the five-year period of October 11, 2011 through October 10, 2016; (2) authorize the Executive Director to execute and the Board Secretary to attest to the Order resetting compensation to be paid by Yang Ming pursuant to Section 4(h) of Permit No. 787; and (3) adopt Order No. ____________.
Office of the City Attorney
SUMMARY: The City of Los Angeles Office of the City Attorney is transmitting to the Board of Harbor Commissioners (Board) a Settlement Agreement and Mutual Release of Claims (Settlement Agreement) with SA Recycling, LLC (SA), the Harbor Department’s tenant under Permit No. 750. If approved, the Settlement Agreement resolves a dispute regarding the Harbor Department's right to assess wharfage on scrap metal leaving SA's premises in a shipping container by land transportation for export through another terminal under Permit No. 750 and Tariff No. 4 as to both past and future cargo, eliminates the possibility of the Harbor Department initiating litigation, and also avoids the threatened litigation by SA.
Recommendation: Board resolve to (1) consider the Settlement Agreement and Mutual Release of Claims (Settlement Agreement) to be entered into with SA Recycling, LLC, and, if approved: (2) authorize the Executive Director to execute and the Board Secretary to attest to the Settlement Agreement and Mutual Release of Claims; (3) further approve and authorize up to $4.7 million in disputed wharfage invoiced from October 2007 through February 2009 to be written off in accordance with the Harbor Department's financial policies; and (4) adopt the foregoing as Resolution No. ____________.
I. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
City of Los Angeles v. Colonial Yacht Anchorage, et al., Los Angeles Superior Court Case No. BC454598
2. 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 regarding subject matter of mediation with SA Recycling.
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators concerning Port of Los Angeles High School Permit No. 867:
Property: 250 West Fifth Street, San Pedro
City Negotiator: Kathryn McDermott
Tenant Negotiator: James Cross
Negotiating Parties: City and Port of Los Angeles High School
Under Negotiation: Terms of Payment