Regular Agenda - August 7, 2014
REGULAR AGENDA OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, AUGUST 7, 2014 AT 8:30 A.M.
PORT OF LOS ANGELES ADMINSTRATION BUILDING
425 S. PALOS VERDES STREET
SAN PEDRO, CA 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. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS
C. EXECUTIVE DIRECTOR REMARKS
D. REPORTS OF THE COMMISSIONERS
E. BOARD COMMITTEE REPORTS
No Board Committee Reports.
F. APPROVAL OF THE MINUTES
Minutes for approval for the following dates:
July 16, 2014 Special Meeting
G. PRESENTATION
1. AltaSea - Rachel Etherington, AltaSea's Chief Executive Officer
2. Terminal Pricing Overview - Jack Hedge, Director of Real Estate
H. ELECTION OF OFFICERS
PURSUANT TO SECTION 503(A) OF THE CHARTER OF THE CITY OF LOS ANGELES, WHICH PROVIDES THAT THE ELECTION OF THE PRESIDENT AND VICE PRESIDENT SHALL BE HELD EACH YEAR, THE BOARD OF HARBOR COMMISSIONERS SHALL HOLD ITS ELECTION TODAY TO ELECT THE FOLLOWING OFFICERS TO SERVE FOR THE ENSUING TERM:
PRESIDENT:
VICE PRESIDENT:
I. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 5)
Commission Office
1. Re: RESOLUTION NO. ____________ - APPROVAL OF TRAVEL FOR AMBASSADOR VILMA MARTINEZ, COMMISSION PRESIDENT, ON A BUSINESS DEVELOPMENT TRIP TO ARGENTINA
Recommendation: Board resolve to adopt subject Resolution No.____________.
Business and Trade Development
2. Re: RESOLUTION NO. ____________ - APPROVAL OF FIRST AMENDMENT TO FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 11-3017 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND NEC LOGISTICS AMERICA, INC., FTZ 202, SITE 4E
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 notification from NEC Logistics America, Inc. (NEC) that NEC merged with Nippon Express in December 2013. The new company name is Nippon Express NEC Logistics America, Inc. (Nippon NEC). The company name change requires the FTZ grantee to amend FTZ Operating Agreement No. 11-3017 (Agreement No. 11-3017). United States Customs and Border Protection (CBP) approved this company name change in March 2014. As such, Nippon NEC continues to operate FTZ general purpose warehouses in FTZ 202, Site 4E. Site 4E is located within FTZ 202, Site 4 which is owned by Watson Land Company (Watson) in Carson, California. Nippon NEC is leasing warehouses from Watson. Also, as a part of the changes, all updated City of Los Angeles contractual provisions will be incorporated into Agreement No. 11-3017. All remaining terms and conditions of Agreement No. 11-3017 shall remain in full force and effect.
Recommendation: Board resolve to (1) approve the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 11-3017 between the City of Los Angeles Harbor Department and NEC Logistics America, Inc.; (2) direct the Board Secretary to transmit the First Amendment to Foreign-Trade Zone Operating Agreement No. 11-3017 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 to Foreign-Trade Zone Operating Agreement No. 11-3017; and (4) adopt Resolution No.____________.
3. Re: RESOLUTION NO. ____________ - APPROVAL OF FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND DEPENDABLE HIGHWAY EXPRESS, INC., FTZ 202, SITE 10D
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 Dependable Highway Express, Inc., (DHE) to activate its warehouse within FTZ 202, Site 10D located at 22411 South Bonita Street, Carson, California 90745. This site is owned by Watson Land Company (Watson) and DHE is leasing from Watson. Site 10D is a 94,984 square footage building on 4 acres property. DHE will be operating its warehouse under FTZ procedures. 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 Dependable Highway Express, Inc.; (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) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the proposed Foreign-Trade Zone Operating Agreement; and (4) adopt Resolution No._____________.
4. Re: RESOLUTION NO. ____________ - APPROVAL OF SECOND AMENDMENT TO FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 09-2794 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND YUSEN LOGISTICS, INC., FTZ 202, SITE 11A
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 Yusen Logistics, Inc. (YLI), Site 11A, located in Carson, California to exercise its first renewal option to extend the term of its FTZ Operating Agreement No. 09-2794 (Agreement No. 09-2794) at FTZ 202, Site 11A. Site 11A is owned by NYK Line, a parent company of YLI. YLI provides international logistic and warehouse services. The original term of the agreement is five years with three, five-year renewal options. The First Amendment was for a company name change from NYK Logistics to YLI and warehouse relocation. The original agreement commenced November 1, 2009 which is set to expire on October 31, 2014. Upon approval, the proposed Second Amendment will extend Agreement No. 09-2794 for five years through October 31, 2019. Also, as part of the changes, all updated City of Los Angeles contractual provisions will be incorporated into Agreement No. 09-2794. All remaining terms and conditions of Agreement No. 09-2794 shall remain in full force and effect.
Recommendation: Board resolve to (1) approve the proposed Second Amendment to Foreign-Trade Zone Operating Agreement No. 09-2794 between the City of Los Angeles Harbor Department and Yusen Logistics, Inc.; (2) direct the Board Secretary to transmit the proposed Second Amendment to Foreign-Trade Zone Operating Agreement No. 09-2794 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 proposed Second Amendment to Foreign-Trade Zone Operating Agreement No. 09-2794; and (4) adopt Resolution No.____________.
Environmental Management
5. Re: RESOLUTION NO. ____________ - ADOPTION OF THE FINAL INITIAL STUDY/NEGATIVE DECLARATION FOR THE U.S. NAVY COMMISSARY BUILDING DEMOLITION PROJECT (LOS ANGELES HARBOR DEPARTMENT APPLICATION FOR PORT PERMIT NO. 140214-018; SCH NO. 2014061048)
Transmittal 1
SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) adopt the Final Initial Study/Negative Declaration (IS/ND) for the proposed U.S. Navy Commissary Building Demolition Project (Project) and, approve the Project as described in the Final IS/ND. The former U.S. Naval Operations Support Center (NOSC) is comprised of four vacant buildings at 390 Navy Way on Terminal Island. The site is approximately 23 acres and was used by the Navy until 2010 when they vacated the premises. One of the four vacant buildings is the former Navy Commissary building, which is approximately 51,000 square feet and was built in 1983. The building was inspected by the Los Angeles Fire Department (LAFD) in 2013 and was found to be out of compliance with fire safety ordinances that include a working and updated fire suppression system (i.e., sprinklers) as well as working utilities. The LAFD issued a Fire/Life Safety Violation which required the City of Los Angeles Harbor Department (Harbor Department) to either retrofit or demolish the structure. There is no future use proposed for the vacant structure so the most cost-effective compliance option at this time is demolition. The Harbor Department is currently under a temporary Special Permit through LAFD until October 20, 2014. The Harbor Department is complying with the provisions of the Special Permit by keeping the building boarded up, keeping the building vacant of contents and occupants and maintaining a fire access lane around the perimeter of the building. The proposed Project solely involves the demolition of the vacant Navy Commissary building. There are no future land uses or operational impacts associated with the proposed Project. Any future or proposed operational use of the property would be evaluated in a separate environmental analysis.
Recommendation: Board resolve to (1) find that, based on the information contained in this report and the Final Initial Study/Negative Declaration for the U.S. Navy Commissary Building Demolition Project, the Project would not have a significant effect on the environment pursuant to Public Resources Code Section 21080 and the State California Environmental Quality Act Guidelines Section 15070; (2) adopt, pursuant to State California Environmental Quality Act Guidelines Section 15074, the Final Initial Study/Negative Declaration for the U.S. Navy Commissary Building Demolition Project which (a) has been completed in compliance with the State California Environmental Quality Act Guidelines and the Los Angeles City California Environmental Quality Act Guidelines; (b) was presented to the Board for review and was reviewed and considered by the Board prior to approving the Project; and (c) reflects the independent judgment and analysis of the City of Los Angeles Harbor Department as the California Environmental Quality Act Lead Agency; (3) find that all information added to the Final Initial Study/Negative Declaration after the public review period, but before adoption, merely clarifies, amplifies, or makes insignificant modifications, and that recirculation is not necessary; (4) in consideration of the Final Initial Study/Negative Declaration, approve the U.S. Navy Commissary Building Demolition Project; (5) authorize the Environmental Management Division to file the Notice of Determination for the U.S. Navy Commissary Building Demolition Project with the Los Angeles City and County Clerks; and (6) adopt Resolution No.____________.
REGULAR ITEMS (6 - 9)
Construction and Maintenance
6. Re: RESOLUTION NO. ____________ - APPROVAL OF AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND AMERICAN MARINE CORPORATION FOR UNDERWATER DIVING SERVICES
Transmittal 1
Transmittal 2
SUMMARY: The Construction and Maintenance Division (C&M) is responsible for the inspection and maintenance of timber wharves and the assessment of underwater slopes for wharf structures throughout the Port of Los Angeles (Port). C&M requests the approval of a nine month agreement, with two one-year renewal options with American Marine Corporation (AMC) of San Pedro, California for on-call underwater diving services. The amount of this agreement shall not exceed $950,000 for the nine-month period, and $1,100,000 for each one-year renewal option, or a total of $3,150,000 over two years and nine months. There is no Civil Service classification in the City of Los Angeles for hard hat underwater diving services (Port Police divers are not certified for commercial underwater inspection/construction).
Recommendation: Board resolve to (1) find that in accordance with Los Angeles City Charter Section 1022, work under the subject agreement (underwater diving services) can be performed more feasibly by an independent contractor than by City employees; (2) approve an agreement with American Marine Corporation, in the amount of $950,000 for a period of nine months with two one-year renewal options; (3) authorize the Executive Director to execute an agreement with American Marine Corporation and two one-year renewal options for the agreement at the discretion of the Executive Director; and (4) adopt Resolution No.____________.
Environmental Management
7. Re: RESOLUTION NO. ____________ - APPROVAL OF AWARD OF CONTRACT NO. 39679 TO B&D CONSTRUCTION COMPANY, INC., FOR PHASE I REMEDIATION OF CONTAMINATED SOIL AT THE FORMER SOUTHWEST MARINE PROPERTY, BERTH 240
Transmittal 1
Transmittal 2
SUMMARY: The Environmental Management Division (EMD) requests approval of Contract No. 39679 with B&D Construction Company, Inc. (B&D Construction) in the amount of $2,291,854 for the removal and off-site disposal of 13,805 tons of excavated non-hazardous and non-Resource Conservation and Recovery Act (non-RCRA) hazardous contaminated soil from the former Southwest Marine (SWM) Site (Berth 240). B&D Construction's bid was the lowest and most responsive and responsible for the required work. The contract term is for a duration of six months (180 days) with no contingencies added. Remediation of the SWM Site is required to comply with Remedial Action Order No. 08/09-056 (Order) from the Department of Toxic Substances Control (DTSC). A Remedial Action Plan (RAP) for the entire site will be submitted in July 2014 to DTSC. A Removal Action Workplan (RAW) was prepared prior to the RAP for remediation of a portion of the SWM Site (Phase I), in the event that the relocation of the Jankovich Company facility from the San Pedro Waterfront to the SWM property is needed. The RAW was approved by the DTSC on August 13, 2013. This Board Action addresses approval of contract award for remediation of only the Phase I work. Soil excavation, stockpiling, confirmation sampling, and disposal of RCRA-hazardous waste activities for the Phase I work will be conducted by one of EMD's As-Needed Environmental Assessment and Site Restoration Services consultants, the Source Group, Inc. (SGI). The cost for this work is estimated at $1,299,632 and will be accomplished under a Project Directive and approved by the Executive Director. It is proposed that the loading and removal/disposal of the stockpiled soil will be conducted by B&D Construction in the amount of $2,291,854. The total cost of the Phase I work (including excavation, required sampling, and soil removal/disposal) is $3,591,486.
Recommendation: Board resolve to (1) approve Contract No. 39679 with B&D Construction Company, Inc. for a total not-to-exceed amount of $2,291,854 and a contractual term of six months; (2) authorize the Executive Director to execute and Board Secretary to attest to said Project Directive and Contract, for and on behalf of the Board; and (3) adopt Resolution No.____________.
Public Relations
8. Re: RESOLUTION NO. ____________ - COMMUNITY INVESTMENT GRANT FOR INTERNATIONAL TRADE EDUCATION PROGRAMS, INC.
Transmittal 1
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is proposing to enter into an Agreement with International Trade Education Programs, Inc. (ITEP), Glendale, CA, for a Community Investment Grant supporting their educational program, which provides maritime industry-related curricula in high schools in various California regions for the purpose of promoting international trade job and career opportunities. The Harbor Department and its customers (ITEP's other primary funding source) benefit from having a large, knowledgeable labor pool available for the variety of jobs associated with its operations. ITEP was selected through the Community Investment Grant Program process, and the committee is recommending the Board of Harbor Commissioners (Board) approve sponsorship for one year in the amount of $330,000.
Recommendation: Board resolve to (1) find that, in accordance with City Charter Section 1022, the scope of work of the proposed Agreement is of a temporary and occasional nature and is best completed by a contractor on an interim basis; (2) find that the proposed Community Investment Grant is consistent with the criteria of the Board-approved Sponsorship/Hosting Policy (March 2010); (3) approve the Agreement with ITEP for a term one year and a total not-to-exceed amount of $330,000; and (4) adopt Resolution No.____________.
9. Re: RESOLUTION NO. ____________ - COMMUNITY INVESTMENT GRANT FOR LOS ANGELES MARITIME INSTITUTE
Transmittal 1
SUMMARY: The Los Angeles Maritime Institute (LAMI) operates the TopSail Youth Sail Training Program (TopSail), which is part of a network of programs for at-risk youths at 37 schools in the City of Los Angeles. The educational program exposes school children to the rigors and discipline of sailing tall ships and at the same time teaches team work, responsibility, leadership skills and maritime tradition. LAMI was selected through the Community Investment Grant Program process, and the committee is recommending the Board of Harbor Commissioners (Board) approve sponsorship for one year in the amount of $225,000.
Recommendation: Board resolve to (1) find that, in accordance with City Charter Section 1022, the scope of work of the proposed Agreement is of a temporary and occasional nature and is best completed by a contractor on an interim basis; (2) find that the proposed Community Investment Grant is consistent with the criteria of the Board-approved Sponsorship/Hosting Policy (March 2010); (3) approve the Agreement with LAMI for a term one year and a total not-to-exceed amount of $225,000; and (4) adopt Resolution No.____________.
J. CLOSED SESSION
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
City of Los Angeles v. BAE Systems San Diego Ship Repair, Inc., United States District Court Case No. CV 13-8810 CBM (AGRx)
3. 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
4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed revocable permit granted to San Pedro Arts Association:
Property: Berth 77, Ports O'Call Village
City Negotiator: Jack Hedge and Jessica Rivie
Tenant Negotiator: John Stinson
Negotiating Parties: City and San Pedro Arts Association
Under Negotiation: Price and Terms
5. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (c) of Government Code Section 54956.9)
Initiation of litigation pursuant to subdivision (c) of Section 54956.9: one case.