Harbor Commission

Regular/Special Agenda - August 8, 2013

AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, AUGUST 8, 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 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.

CONVENE IN MEMORY OF ARMANDO CHAVEZ

B. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS

C. EXECUTIVE DIRECTOR REMARKS
Introduction of International Trade Education Program Summer Internship 2013

Summer 2013 College Interns

D. REPORTS OF THE COMMISSIONERS

E. BOARD COMMITTEE REPORTS

F. APPROVAL OF MINUTES

G. PRESENTATIONS
Cyber Security

H. SPECIAL ORDER OF THE DAY

PUBLIC HEARING

1(a) Re: ISSUANCE OF A LEVEL III COASTAL DEVELOPMENT PERMIT (NO. 13-08) TO KINDER MORGAN TANK STORAGE TERMINALS, LLC FOR THE DEMOLITION OF CERTAIN FACILITY IMPROVEMENTS AND REMEDIATION AT BERTHS 119 AND 120

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 Economic Development

1(b) Re: RESOLUTION NO. ____________ - ISSUANCE OF A LEVEL III COASTAL DEVELOPMENT PERMIT (NO. 13-08) TO KINDER MORGAN TANK STORAGE TERMINALS, LLC FOR THE DEMOLITION OF CERTAIN FACILITY IMPROVEMENTS AND REMEDIATION AT BERTHS 119 AND 120

Transmittal 1
Transmittal 2
Transmittal 3

SUMMARY: Kinder Morgan Tank Storage Terminals, LLC (Kinder Morgan) has requested to demolish 10 of 12 petroleum storage tanks, associated piping, and equipment at Berths 119 and 120. Two tanks will remain to allow Kinder Morgan to continue to import and export product until April 2017. Site remediation of impacted soils would occur immediately after demolition. Staff is recommending the Board of Harbor Commissioners (Board) approve Coastal Development Permit (CDP) No. 13-08, a Level III, non-appealable permit for the proposed project.
Recommendation: Board resolve to (1) hold a public hearing for the proposed Level III, non-appealable Coastal Development Permit No. 13-08; (2) find that the proposed project conforms 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) upon closure of the public hearing, resolve to approve the issuance of a Level III, non-appealable Coastal Development Permit No. 13-08 to demolish the petroleum storage tanks, associated piping, and equipment at Berths 119 and 120, and remediate the site subject to the standard conditions set forth in the permit, and direct the Director of Planning and Economic Development to issue said permit; and (4) adopt Resolution No.____________.

I. BOARD REPORTS OF THE EXECUTIVE DIRECTOR

CONSENT ITEMS (2 & 3)

Accounting

2. Re: RESOLUTION NO. ____________ - PERSONAL SERVICES AGREEMENT BETWEEN SIMPSON & SIMPSON, CPAs AND THE CITY OF LOS ANGELES HARBOR DEPARTMENT

Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4

SUMMARY: The proposed Agreement with Simpson & Simpson, CPAs (S&S), headquartered in Los Angeles, California, will retain independent certified public accountants to perform the annual financial statement audit and the single audit of the City of Los Angeles Harbor Department (Harbor Department). In addition, the auditors will perform other financial auditing services, including the audit of the financial statements of Los Angeles Harbor Improvement Corporation (LAHIC) and upon request, provide expert accounting opinions regarding significant accounting policies. The proposed Agreement is for a three-year term and a not-to-exceed amount of $450,000.
Recommendation: Board resolve to (1) find that in accordance with City of Los Angeles Charter Section 1022, the services under the subject professional services agreement are of a professional, expert, and technical nature, which can only be performed by an independent, licensed certified public accounting firm; (2) approve the Agreement with Simpson & Simpson, CPAs at an amount not-to-exceed $450,000 and a term of three (3) years; (3) authorize the Executive Director or designee to execute the Agreement and the Board Secretary to attest to the Agreement; and (4) adopt Resolution No.____________.

Clean Truck Program

3. Re RESOLUTION NO. ____________ - THIRD AMENDMENT TO AGREEMENT NO. 08-2702 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND TETRA TECH, INC. FOR ADMINISTRATION OF THE CLEAN TRUCK PROGRAM

Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4

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 (Agreement) with Tetra Tech, Inc. (Tetra Tech) located in Pasadena, California for $8.4 million to provide concession, grant administration, and support services for the Clean Truck Program (CTP). The Agreement is scheduled to expire on December 31, 2013. The Harbor Department requests that the Agreement be extended 18 months until June 30, 2015 (Transmittal 1). This proposed extension will not require additional funding authority, as unspent funding in the amount of $1,695,355 remains available in the original $8.4 million.
Recommendation: Board resolve to (1) approve the proposed Third Amendment to Agreement No. 08-2702 with Tetra Tech, Inc. to extend the current contract to June 30, 2015; (2) authorize the Board Secretary to transmit the proposed Third 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 on behalf of the Board of Harbor Commissioners upon approval by the City Council; and (4) adopt Resolution No.____________.

 

REGULAR ITEMS (4 - 7)

Environmental Management

4. Re: RESOLUTION NO. ____________ - FINAL PROGRAM ENVIRONMENTAL IMPACT REPORT FOR THE PORT MASTER PLAN UPDATE (ADP NO. 110518-060; SCH NO. 2012071081)

Transmittal 1
Transmittal 2
Transmittal 3

SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) certify the Final Program Environmental Impact Report (PEIR) for the update to the Port Master Plan (PMP) in accordance with the California Environmental Quality Act (CEQA). The update to the PMP will serve as a long-range plan to establish policies and guidelines for future use of Port of Los Angeles' (Port) lands within the coastal zone, as required under the California Coastal Act (CCA). It will consolidate areas characterized by predominant land use patterns, thereby reducing the number of planning areas and would allocate a single allowable land use to most sites. The update to the PMP includes appealable/fill projects, projects that have been previously assessed under CEQA and approved by the Board, and other projects that are currently undefined (i.e., in the conceptual design stage). This Board action does not include approval of any proposed appealable/fill projects or other conceptual projects at this time. The proposed appealable/fill projects included in the update to the PMP are in various planning stages and are expected to be initiated or completed at a future time. Any proposed future project would require subsequent environmental review under CEQA and approval by the Board in a separate future action. In this action, the Board will need to consider and certify the Final PEIR, make specific Findings of Fact (FOF) regarding the significant environmental impacts of the update to the PMP and mitigation measures to reduce or avoid such impacts, adopt a Statement of Overriding Considerations (SOC), and adopt a Mitigation Monitoring and Reporting Program (MMRP) to track mitigation. With the application of mitigation measures and lease measures, significant and unavoidable impacts from the update to the PMP remain related to air quality and greenhouse gases, biological resources, noise, transportation and circulation, and cumulative impacts. In addition, the update to the PMP would result in disproportionate effects on minority and low-income populations as a result of significant and unavoidable environmental impacts. The update to the PMP would foster growth within the Port by increasing productivity of cargo shipping operations, expanding visitor services, and converting vacant lands to productive, revenue generating uses. However the economic benefits cannot be quantified at present.
Recommendation: Board resolve to (1) certify that the Final Program Environmental Impact Report for the Port Master Plan Update (a) has been completed in compliance with the California Environmental Quality Act (Public Resources Code §21000 et seq.), with the California Environmental Quality Act Guidelines (14 Cal. Code Regs. §15000 et. seq.), and the City of Los Angeles California Environmental Quality Act Guidelines; (b) was presented to the Board of Harbor Commissioners for review and the Board considered the information contained in the Final Program Environmental Impact Report prior to approving the Port Master Plan Update; and (c) reflects the independent judgment and analysis of the City of Los Angeles Harbor Department, and that all required procedures have been completed; (2) adopt the Findings of Fact and Statement of Overriding Considerations; (3) find that, in accordance with the information contained in the Final Program Environmental Impact Report, the update to the Port Master Plan will have significant environmental effects on Air Quality and Greenhouse Gases, Biological Resources, Cultural Resources, Geology, Hazards and Hazardous Materials, Noise, Public Services, Transportation and Circulation, and Cumulative Impacts; as defined by Public Resources Code Sections 21068, 21080, 21082.2, and 21083 and the State California Environmental Quality Act Guidelines, Sections 15064, 15064.4, 15064.5, and 15382; (4) find that, in accordance with the provisions of the California Environmental Quality Act Guidelines Section 15091(a)(1), changes or alterations have been required in, or incorporated into, the update to the Port Master Plan, which substantially lessen or avoid the significant adverse environmental impacts identified in the Final Program Environmental Impact Report; (5) find that in accordance with the provisions of the California Environmental Quality Act Guidelines Section 15091(a)(3), specific economic, legal, social, technological, or other considerations, make infeasible certain mitigation measures and Alternatives identified in the Final Program Environmental Impact Report. Impacts to Air Quality and Greenhouse Gases, Biological Resources, Noise, Transportation and Circulation, and Cumulative Impacts remain significant and unavoidable even after all feasible mitigation is adopted; (6) find that, all information added to the Final Program Environmental Impact Report after public notice of the availability of the Draft Program Environmental Impact Report for public review but before certification merely clarifies, amplifies, or makes insignificant modifications in an adequate Program Environmental Impact Report and recirculation is not necessary; (7) find that, in accordance with Public Resources Code Section 21081(b) and California Environmental Quality Act Guidelines Section 15093, the
benefits of the update to the Port Master Plan outweigh the significant and unavoidable environmental impacts, and adopt the Findings of Fact and Statement of Overriding Considerations; (8) adopt the Mitigation Monitoring and Reporting Program as required by Public Resources Code, Section 21081.6. Mitigation measures and lease measures contained in the Program Environmental Impact Report would be incorporated as appropriate in permits, such as, engineering specifications, engineering construction permits, real estate entitlements, and/or coastal development permits for individual future projects. For this reason, the Mitigation Monitoring and Reporting Program would be implemented at the individual project level. (9) authorize the Environmental Management Division to file the Notice of Determination with the Los Angeles County Clerk, the Los Angeles City Clerk, and the State Secretary of Resources; and (10) adopt Resolution No.____________.

 

Planning and Economic Development

5. Re: RESOLUTION NO. ____________ - ADOPTION OF THE PORT MASTER PLAN

Transmittal 1
Transmittal 2

SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) adopt the comprehensive update to the Port Master Plan and authorize the Executive Director to submit the Port Master Plan to the California Coastal Commission (Coastal Commission) for certification, as required by the California Coastal Act (Coastal Act). The updated Port Master Plan combines the original 1980 Port Master Plan and its subsequent amendments into a more user-friendly long range master planning document that reflects recent land use and planning projects and accommodates forecasted cargo growth. The Port Master Plan has been revised since the February 21, 2013 distribution of the Draft Port Master Plan to address comments received from stakeholders and interested parties. Adoption of the updated Port Master Plan is subject to Board approval of the Port Master Plan Final Program Environmental Impact Report (PEIR) in conjunction with the Port Master Plan.
Recommendation: Board resolve to (1) find that with the certification of the Port Master Plan Final Program Environmental Impact Report, the Board of Harbor Commissioners has considered the environmental effects of the update of the Port Master Plan as described in the Port Master Plan Final PEIR. Therefore, the adoption of this resolution is exempt from the California Environmental Quality Act (CEQA) under Article II Section 2(i) of the City of Los Angeles CEQA Guidelines; (2) adopt the Port Master Plan; (3) authorize the Executive Director to submit the Port Master Plan to the California Coastal Commission for certification; and (4) adopt Resolution No.____________.

 

Real Estate

6. Re: RESOLUTION NO. ____________ - APPROVAL OF THE PORT OF LOS ANGELES ASSET MANAGEMENT POLICY

Transmittals


SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) operates in a world of increasing competition, rising energy costs, shifting demand for containerized cargo, and changing environmental and land use regulations. As a result, the Harbor Department has developed The Port of Los Angeles Asset Management Policy (Asset Management Policy), a comprehensive real property management program to utilize the assets under its control in a more efficient and effective manner. Among other management objectives, the program addresses how the Harbor Department will approach its facilities and other real property asset holdings, as necessary, to ensure compliance with the parameters of previously accepted policies mandated by the Board of Harbor Commissioners (Board), such as the Financial Management policies, and to protect the interests of the citizens of Los Angeles and California.
This item, along with the Port of Los Angeles Leasing Policy, which was transmitted under a separate report, was carried over from the July 25, 2013 Board meeting in order to collect additional information requested by the Board. The only revisions made to the Asset Management Policy from the July 25, 2013 revision are the updates on the Sources of Information page.
Recommendation: Board resolve to (1) approve and adopt the Port of Los Angeles Asset Management Policy; and (2) adopt Resolution No.____________.

7. Re: RESOLUTION NO. ____________ - APPROVAL OF THE PORT OF LOS ANGELES LEASING POLICY

Transmittals

SUMMARY: The Port of Los Angeles Leasing Policy (Leasing Policy) supports the Strategic Plan while reinforcing consistency with other Board approved policies, the Los Angeles City Administrative Code , Los Angeles City Charter, the California Coastal Act, the State Lands Commission - Public Trust Doctrine, Tariff No. 4, the Port Master Plan, and the State Tidelands Trust Grant. The Leasing Policy applies to all of the varied types of property use agreements involving the use and occupancy of land, submerged land, buildings, and other real property assets and is intended to provide a framework for the City of Los Angeles Harbor Department's (Harbor Department) internal use in making leasing decisions, increasing efficiency, and achieving consistency and transparency, as they relate to the following:

a) Development of new property use agreements; and
b) Modifications to existing property use agreements.

This item was carried over from the July 25, 2013 Board of Harbor Commissioners' (Board) meeting in order to collect additional information requested by the Board.
Recommendation: Board resolve to (1) approve and adopt the Port of Los Angeles Leasing Policy; and (2) adopt Resolution No.____________.

J. CLOSED SESSION

1. 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

2. 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

3. THREAT TO PUBLIC SERVICES OR FACILITIES
(Subdivision (a) of Government Code Section 54957)

Consultation with: Port of Los Angeles Deputy Executive Director of Operations John Holmes, Port of Los Angeles Chief of Police Ronald J. Boyd, Port of Los Angeles Assistant Chief of Police Michael R. Hillmann, Port of Los Angeles Deputy Chief of Police Paul J. Lipscomb

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