Special Meeting Agenda - July 13, 2015
July 8, 2015
REVISED NOTICE: SPECIAL BOARD MEETING- MONDAY, JULY 13,2015
SUBJECT: THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS SPECIAL MEETING- MONDAY, JULY 13,2015 AT 5:00P.M.
The Los Angeles Board of Harbor Commissioners has called for a Special
Meeting on Monday, July 13, 2015 at 5:00pm:
Port of Los Angeles Harbor Administration Building
425 S. Palos Verdes Street, Board Room, Second Floor
San Pedro, California 90731
The attached agenda specifies the intended business to be conducted at the Special Meeting. Additional items will not be considered.
AMBER M. KLESGES
Commission Secretary
AGENDA OF THE SPECIAL MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
MONDAY, JULY 13, 2015 AT 5:00 P.M.
THE OPEN SESSION ITEMS WILL BEGIN NO SOONER THAN 6:00 P.M.
PORT OF LOS ANGELES ADMINISTRATION BUILDING
425 S. PALOS VERDES STREET
SAN PEDRO, CALIFORNIA 90731
BOARD OF HARBOR COMMISSIONERS
Ambassador Vilma S. Martinez, President
Vice President David Arian
Commissioner Patricia Castellanos
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
A. OPENING STATEMENT - AN OPPORTUNITY FOR MEMBERS OF
THE PUBLIC TO ADDRESS THIS BOARD
B. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Cheryl Morris v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BC552974
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to the proposed ground lease for Ports O'Call site:
Property: Berths 74-83, San Pedro, California
City Negotiator: Michael Galvin
Tenant Negotiators: Eric Johnson, Brian Saenger
Negotiating Parties: City and LA Waterfront Alliance
Under Negotiation: Price and Terms
3. 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
4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to an amendment to the agreement with Crafted at the Port of Los Angeles:
Property: 112 E. 22nd Street, San Pedro, California
City Negotiator: Michael Galvin
Tenant Negotiators: Wayne Blank, Howard Robinson
Negotiating Parties: City and Crafted at the Port of Los Angeles
Under Negotiation: Price and Terms
5. CONFERENCE WITH LEGAL COUNSEL - INITIATE LITIGATION
(Subdivision (d)(4) of Government Code Section 54956.9)
Initiation of litigation pursuant to subdivision (d)(4) of Section 54956.9: one case.
6. 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).
7. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (d)(2) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9 of the Government Code (one case). Pursuant to paragraph (2) of subdivision (e) of Section 54956.9 of the Government Code, the facts and circumstances which might result in litigation are statements that Government Code Sections 81000-91014 might apply to members of the Operating Committee for the Alameda Corridor.
8. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code Section 54957)
Executive Director
C. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS
D. EXECUTIVE DIRECTOR REMARKS
E. REPORTS OF THE COMMISSIONERS
F. BOARD COMMITTEE REPORTS
G. APPROVAL OF THE MINUTES
Regular Meeting of June 18, 2015
H. PRESENTATION
1. Water Conservation
2. Zero Emission White Paper
I. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 7)
Information Technology
1. Re: RESOLUTION NO. ____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND INTERNATIONAL BUSINESS MACHINES CORPORATION FOR DISASTER RECOVERY SERVICES
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The Information Technology (IT) Division is requesting approval to enter into an agreement with International Business Machines Corporation (IBM) to provide disaster recovery services, which includes the use of an alternate recovery site and computer equipment for the recovery of the City of Los Angeles Harbor Department's (Harbor Department) computing systems in the event that the data center is not available. The term of the proposed Agreement is three years at a not-to-exceed amount of $287,640. In addition, the proposed Agreement allows the Executive Director to authorize up to an additional $150,000 for related expenditures if needed due to changes in equipment or services, or for usage fees during an actual disaster. The recommendation to select IBM is based on a competitive Request for Proposal (RFP) process performed by the Harbor Department. IBM is headquartered in Armonk, New York, with local offices in Los Angeles and other cities in Southern California. The proposed Agreement for disaster recovery services is the financial responsibility of the Harbor Department.
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) approve the agreement with IBM for a term of three years at an amount not to exceed $287,640, and authorize up to an additional $150,000 for related expenditures if needed; (3) authorize the Executive Director to execute and the Board Secretary to attest to said agreement; and (4) adopt Resolution No.____________.
Cargo Marketing
2. Re: RESOLUTION NO. ____________ - APPROVAL OF FIRST AMENDMENT OF FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 12-3064 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND CUSTOMS AIR WAREHOUSE, INC. FTZ 202, SITE 10E
Transmittal 1
Transmittal 2
Transmittal 3
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 Custom Air Warehouse (Custom Air) to amend FTZ Operating Agreement No. 12-3064 (Agreement) due to the relocation of their warehouse within FTZ 202, Site 10E, and the need to correct their company name to read Customs Air Warehouse, Inc. The original location was 1130 East 230th Street, Carson, California 90745 and the new location is 907 E. 236th Street, Carson, California 90745. Site 10E is a 6.26-acre property including a warehouse located approximately 10 miles north of the Port of Los Angeles. This relocation was approved by the U.S. Custom Border Protection Agency. All remaining terms and conditions of the Agreement shall remain in full force and effect, except as amended herein.
Recommendation: Board resolve to (1) approve the proposed First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 12-3064 between the City of Los Angeles Harbor Department and Custom Air Warehouse; (2) direct the Board Secretary to transmit the proposed First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 12-3064 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; (3) 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. 12-3064; and (4) adopt Resolution No.____________.
Cargo Marketing
3. Re: RESOLUTION NO. ____________ - APPROVAL OF FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND SYNCREON LOGISTICS (USA) LLC, FTZ 202, SITE 43
Transmittal 1
Transmittal 2
Transmittal 3
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 syncreon Logistics (USA) LLC (syncreon) to activate its warehouse within FTZ 202, Site 43, located at 19200 South Western Avenue, Torrance, California 90501. Site 43 is a 26-acre property including a warehouse located approximately 10 miles from the Port of Los Angeles. Syncreon will be operating its warehouse under FTZ procedures as a single-usage site. The proposed FTZ Operating Agreement (Agreement) is for a term of five years with three, five-year renewal options.
Recommendation: Board resolve to (1) approve the proposed Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and syncreon Logistics (USA) LLC.; (2) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating Agreement 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; (3) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Foreign-Trade Zone Operating Agreement, upon approval by the City Council; and (4) adopt Resolution No.____________.
Community Relations
4. Re: RESOLUTION NO. ____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND INTERNATIONAL LOBSTER FESTIVALS, INC.
Transmittal 1
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is proposing to enter into an agreement with International Lobster Festivals, Inc., to act as promoter and organizer of the annual Port of Los Angeles Lobster Festival. The agreement begins with the 2015 event and includes an option for the Harbor Department to extend the agreement for two additional one-year terms with a financial commitment of $35,000 per year, for a total of $105,000 over the full three-year term. International Lobster Festivals, Inc. will explore ways to recoup some or all of these funds for the Harbor Department beginning with the 2015 event.
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 rather 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 Sponsorship/Hosting Policy adopted in March 2010; and (4) authorize the Executive Director to execute and the Board Secretary to attest to the agreement with International Lobster Festivals, Inc. for one year with two additional one year options for a not¬-to-exceed amount of $105,000; and (5) adopt Resolution No.____________.
Executive Office
Transmittal 1
Transmittal 2
SUMMARY: Staff recommends the Board of Harbor Commissioners (Board) approve an Amendment to City of Los Angeles Harbor Department (Harbor Department) Agreement No. 2608, "Memorandum of Understanding (MOU) Between the State of California, the Office of the Mayor of the City of Los Angeles, and the City of Los Angeles Harbor Department Creating a Partnership to Reduce Greenhouse Gases and Support the Port of Los Angeles Clean Air Action Plan" (Amendment). The Amendment describes the mechanisms and the adjusted timing for the Harbor Department's installation of 10 megawatts of photovoltaic solar power within the Port of Los Angeles (Port) and the delivery of expanded greenhouse gases inventory reports under the MOU. The cost of installing and maintaining the photovoltaic solar power within the Port and the delivery of the inventory reports are the financial responsibility of the Harbor Department.
Recommendation: Board resolve to (1) approve the Amendment to Harbor Department Agreement No. 2608, "Memorandum of Understanding Among the State of California, the Office of the Mayor of the City of Los Angeles, and the City of Los Angeles Harbor Department Creating a Partnership to Reduce Greenhouse Gases and Support the Port of Los Angeles Clean Air Action Plan;" (2) authorize the Executive Director to execute and the Board Secretary to attest to the Amendment for and on behalf of the Board; and (3) adopt Resolution No.____________.
Commission Office
6. Re: RESOLUTION NO. ____________ - APPROVAL FOR COMMISSION PRESIDENT, AMBASSADOR VILMA MARTINEZ'S TRAVEL TO ASIA ON A BUSINESS DEVELOPMENT TRIP
Recommendation: Board resolve to adopt subject Resolution No.____________.
Commission Office
7. Re: RESOLUTION NO. ____________ - APPROVAL FOR COMMISSION VICE PRESIDENT, DAVID ARIAN TO TRAVEL ON A BUSINESS DEVELOPMENT TRIP TO CHILE
Recommendation: Board resolve to adopt subject Resolution No.____________.
REGULAR ITEMS (8 - 11)
Environmental Management
8. Re: RESOLUTION NO. ____________ - APPROVAL OF A TECHNOLOGY ADVANCEMENT PROGRAM COST SHARE AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND THE PORT OF LONG BEACH TO FUND AN ELECTRIC DRAYAGE PROJECT WITH TRANSPORTATION POWER, INC.
Transmittal 1
SUMMARY: This action is to request approval of the Cost Share Agreement between the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) to fund a Clean Air Action Plan (CAAP) Technology Advancement Program (TAP) with Transportation Power, Inc. (TransPower) located in Poway, California, to improve upon an ongoing Electric Drayage Pre-Commercial Demonstration Project (EDPCD Project). This improvement of the EDPCD Project, the Electric Drayage Infrastructure and Improvement (EDII) Project (TAP Project), will focus on charging infrastructure installation, development of a next generation battery management system, manufacture engineering to achieve cost-effective production, and improved control software. The recommended funding amount of $600,000 will be shared equally between the Harbor Department and the POLB in a contract to be entered between POLB and TransPower. The proposed action is to approve a cost share agreement with the POLB for a term of two years, under which the Harbor Department will reimburse POLB 50 percent of the TAP project costs in the amount of $300,000.
Recommendation: Board resolve to (1) approve the Cost Share Agreement between the City of Los Angeles Harbor Department and the Port of Long Beach for the reimbursement of $300,000, for the Transportation Power, Inc. Electric Drayage Infrastructure and Improvement Project; (2) authorize the Executive Director to execute and Board Secretary to attest to said agreement for and on behalf of the Board of Harbor Commissioners; and (3) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
SUMMARY: At its meeting held on February 19, 2015, the Board of Harbor Commissioners (Board) approved a First Amended and Restated Letter of Intent (LOI) for the redevelopment of the Ports O' Call site between the City of Los Angeles Harbor Department (Harbor Department) and LA Waterfront Alliance (Developer), a collaboration between The Ratkovich Company and Jerico Development. The Harbor Department has been in negotiations with the Developer since March 2013, under an Exclusive Negotiating Agreement (ENA). The Amended and Restated Letter of Intent will memorialize progress made to date and describe the remaining tasks required to complete negotiations of an Agreement for a 50-year ground lease.
Recommendation: Board resolve to (1) approve the First Amended and Restated Letter of Intent between the City of Los Angeles Harbor Department and LA Waterfront Alliance, to December 31, 2015; (2) authorize the Executive Director to execute and the Board Secretary to attest to the First Amended and Restated Letter of Intent; and (3) adopt Resolution No.____________.
Debt & Treasury
10. Re: RESOLUTION NO. ____________ - AUTHORIZING THE APPOINTMENT OF UNDERWRITING FIRMS TO LEAD THE NEGOTIATED SALE IN CONJUNCTION WITH THE ISSUANCE OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT 2015 REFUNDING REVENUE BONDS
Transmittal 1
SUMMARY: Staff is requesting authority to appoint Siebert Branford Shank & Co., LLC as senior manager and RBC Capital Markets as co-manager for the issuance of the City of Los Angeles Harbor Department 2015 Refunding Revenue Bonds. These bonds will refund all of the City of Los Angeles Harbor Department's (Harbor Department) 2005 Series A and Series B Bonds (the "2005AB Bonds") through a negotiated sale. It is necessary to appoint underwriting firms to lead the negotiated sale of the bonds. Underwriting fees are expected to be approximately $110,000 and will be paid from bond proceeds.
Recommendation: Board resolve to (1) appoint the team of underwriting firms consisting of Siebert Brandford Shank & Co., LLC a California based bank, as well as Minority and Women Owned Business Enterprise (MBE and WBE) as the senior managing underwriting firm for the private sale of the Bonds, with RBC Capital Markets as the co-managing underwriting firm for the private sale of the Bonds (Transmittal 1); (2) this Resolution and the selection of the underwriting firms shall be subject to the City Council oversight pursuant to Section 245 of the Charter; and (3) adopt Resolution No.____________.
Debt & Treasury
11. Re: RESOLUTION NO. ____________ - AUTHORIZING THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS TO APPROVE THE ISSUANCE OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT 2015 REFUNDING REVENUE BONDS
Transmittal 1
Transmittal 2
SUMMARY: Staff requests adoption of a resolution authorizing the issuance of the 2015 Refunding Revenue Bonds that will refund (i.e. refinance) all of the City of Los Angeles Harbor Department's (Harbor Department) 2005 Series A Bonds in an outstanding amount of $22.74 million and 2005 Series B Bonds in the amount of $21.19 million (the "2005AB Bonds"). The Resolution also authorizes the cash redemption of the 2005 Series C-1 Bonds with outstanding balance of $7.41 million with available funds. The refunding of the 2005AB Bonds, as well as the redemption of 2005 Series C-1 Bonds will result in interest savings on outstanding debt.
Recommendation: Board resolve to authorize the issuance of the City of Los Angeles Harbor Department 2015 Refunding Revenue Bonds (the "Refunding Revenue Bonds"), in one or more series, through a negotiated sale in a combined principal amount not-to-exceed $55 million, and with a final maturity no later than August 1, 2026; (2) authorize the redemption of the 2005 Series C-1 Bonds with funds from the Harbor Revenue Fund; (3) authorize the current refunding of all or a portion of the Harbor Department's 2005 Series A and B Bonds with the proceeds of the 2015 Refunding Revenue Bonds, subject to the parameters set forth in this Resolution (Transmittal 1); (4) ratify actions taken by officers, employees, and agents of the Harbor Department prior to the date the Resolution becomes final, including but not limited to the printing and distribution of the Preliminary Official Statement; (5) adopt Resolution No.____________; and (6) direct the Board Secretary, pursuant to Charter Section 609 and the Bond Procedural Ordinance (LAAC Sections 11.28.1 through 11.28.9) to certify that the Board has adopted the Resolution and, on behalf of the Board, immediately transmit for further processing certified copies of the Resolution and copies of the Board item and all related documents to the Mayor, to the City Administrative Officer, and to the City Council.