Agenda - August 16, 2012
AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, AUGUST 16, 2012 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 M. Kramer
Commissioner Douglas P. Krause
Commissioner Dr. 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
D. REPORTS OF THE COMMISSIONERS
E. BOARD COMMITTEE REPORT
F. PRESENTATION
I-710 Overview and Update
G. APPROVAL OF MINUTES
Minutes for the Special Meeting of September 15, 2011 and Regular Meetings of January 19, 2012, March 1, 2012 and June 21, 2012 for approval.
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 5)
Information Technology
Transmittal 1
SUMMARY: The Information Technology (IT) Division is requesting approval to award Contract No. 39634 to Infor Global Solutions, Inc. (INFOR), a Michigan Corporation, to renew the required annual software license and maintenance of the mainframe-based enterprise financial software used by the City of Los Angeles Harbor Department (Harbor Department). The annual software license and maintenance fee is required for the Harbor Department to continue to use the INFOR financial system and to receive software updates and support. Renewing the software license and maintenance is necessary to allow the Harbor Department to continue to operate at its current level without business interruption. It is anticipated this will be the last year INFOR software license and maintenance fees will be renewed because the Harbor Department is implementing a new Enterprise Resource Planning (ERP) system that includes new financial software. The proposed contract is for an amount not-to-exceed $310,858 for a term of one year. The recommendation to award Contract No. 39634 to INFOR is based on INFOR’s bid response. INFOR is the only company that can provide software license and maintenance fees for its proprietary software.
Recommendation: Board resolve to (1) find that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (2) approve the contract with INFOR for an amount not-to-exceed $310,858 for a one year term; (3) authorize the Executive Director to execute and the Board Secretary to attest to said contract; and (4) adopt Resolution No. ____________.
Real Estate
Transmittals
SUMMARY: Pacific Pipeline System, Inc. has a longitudinal petroleum pipeline under Joint Permit (JP) No. 790 with a 30-year term (September 1997 - September 2027), with two additional ten-year options. Pacific Pipeline System, Inc. has requested that the City of Los Angeles Harbor Department (Harbor Department) consent to the transfer of JP No. 790 to Pacific Pipeline System LLC (Pacific Pipeline). In addition to the proposed Order consenting to the assignment of JP No. 790, is an Order that retroactively resets annual compensation to be paid under JP No. 790 for the five-period of November 14, 2007 through November 13, 2012 at $13,980 (increased from $8,713). The Port of Long Beach (POLB) does not utilize Orders for items approved by its Board of Harbor Commissioners; therefore, the POLB requested that the Harbor Department enter into an agreement with POLB and Pacific Pipeline in order to meet POLB’s approval requirements.
Recommendation: Board resolve to (1) approve the proposed Order consenting to transfer Joint Permit No. 790 from Pacific Pipeline System, Inc. to Pacific Pipeline System LLC; (2) approve the proposed Order retroactively setting compensation under Joint Permit No. 790 for the five-period of November 14, 2007 through November 13, 2012; (3) approve the proposed Agreement with Pacific Pipeline System LLC and the Port of Long Beach consenting to the transfer and retroactive setting of compensation of Joint Permit No. 790; (4) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Orders and Agreement; and (5) adopt Resolution No. ______________.
Transmittal 1
SUMMARY: Master Joint Revocable Permit (MJRP) No. 09-17 among the City of Los Angeles Harbor Department (Harbor Department, the Port of Long Beach (POLB), and Pacific Pipeline System LLC (Pacific Pipeline), a subsidiary of Plains All-American, is proposed for the purpose of consolidating various existing leases and licenses for subsurface petroleum pipelines and related appurtenances (i.e., cathodic protection systems, vaults, valves, meters, etc.) into a single master permit to reduce duplicative administrative burdens. The proposed MJRP will allow parcels for subsurface facilities and related appurtenances to be added or removed through amendments that will only require the approval and execution by the Executive Directors of the Harbor Department and POLB. In addition, the proposed MJRP will update terms to reflect current standard permit terms and provisions, document historically operated facilities for future reference, and adjusts compensation.
Approval of the proposed MJRP will result in substantial time and cost savings associated with management of the various Pacific Pipeline entitlements.
Recommendation: Board resolve to (1) approve Master Joint Revocable Permit No. 09-17 with Pacific Pipeline System LLC for the operation and maintenance of existing subsurface petroleum pipelines and appurtenances; (2) authorize the Executive Director to execute and the Board Secretary to attest to Master Joint Revocable Permit No. 09-17; and (3) adopt Resolution No. ____________.
4. Re: RESOLUTION NO. ____________ - APPROVE MASTER JOINT REVOCABLE PERMIT NO. 09-18 AMONG THE CITY OF LOS ANGELES HARBOR DEPARTMENT, PORT OF LONG BEACH, AND PLAINS WEST COASTAL TERMINALS LLC - LAHD NO. 70072
Transmittal 1
SUMMARY: Master Joint Revocable Permit (MJRP) No. 09-18 among the City of Los Angeles Harbor Department (Harbor Department), the Port of Long Beach (POLB), and Plains West Coast Terminals LLC (Plains West Coast), a subsidiary of Plains All-American, is proposed for the purpose of consolidating various active leases and licenses for subsurface petroleum pipelines and related appurtenances (i.e., cathodic protection systems, vaults, valves, meters, etc.) into a single master permit to reduce duplicative administrative burdens. The proposed MJRP will allow parcels for subsurface facilities and related appurtenances to be added or removed through amendments that will only require the approval and execution by the Executive Directors of the Harbor Department and POLB. In addition, the proposed MJRP will update terms to reflect current standard permit terms and provisions, document historically operated facilities for future reference, and adjusts compensation.
Approval of the proposed MJRP will result in substantial time and cost savings associated with the management of the various Plains West Coast entitlements. In addition, the aggregate annual rent of the various Plains West Coast entitlements will increase from a nominal $187 to $2,000 in annual rent, with the Consumer Price Index escalator.
Recommendation: Board resolve to (1) approve proposed Master Joint Revocable Permit No. 09-18 with Plains West Coast Terminals LLC for the operation and maintenance of existing subsurface petroleum pipelines and appurtenances; (2) authorize the Executive Director to execute and the Board Secretary to attest to Master Joint Revocable Permit No. 09-18; and (3) adopt Resolution No. ____________.
Transmittal 1
SUMMARY: Proposed successor Permit No. 870 between the City of Los Angeles Harbor Department (Harbor Department) and Southern California Gas Company (SCG), a public utility, grants SCG the use of 3,138 square feet (s.f.) of subsurface land area for a term of 20 years. The premises, located in East Wilmington, are for the operation and maintenance of an existing subsurface pipeline right-of-way for delivery of natural gas to the surrounding community.
It is proposed that compensation be set at $3,452 annually, based on the Harbor Department receiving a 10 percent annual rate of return on a negotiated land value of $22 per s.f., with subsurface parcels discounted by 50 percent. Successor Permit No. 870 will also include a Consumer Price Index escalator. The $2.20 per s.f. per year land rent is a negotiated rent and is consistent with market rent in the East Wilmington area.
Recommendation: Board resolve to (1) approve Permit No. 870 with Southern California Gas Company; (2) direct the Board Secretary to transmit Permit No. 870 to the Los Angeles City Council for approval pursuant to Section 606 of the City's Charter; (3) authorize the Executive Director to execute and the Board Secretary to attest to Permit No. 870 upon approval by the City Council; and (4) adopt Resolution No. ____________.
REGULAR ITEMS (6 - 9)
Business and Trade Development
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: On June 16, 2011, the Board of Harbor Commissioners (Board) approved an amendment to Port of Los Angeles (POLA) Tariff No. 4, Items 520 and 550-033, exempting the assessment of wharfage on Transferred Merchandise for one year through June 30, 2012. Transferred Merchandise is defined as merchandise received at a municipal wharf or wharf premise by land transportation and subsequently removed from a municipal wharf or wharf premise by land transportation. Staff is recommending the Board approve an amendment to POLA Tariff No. 4, Items 520 and 550-033, resulting in the Transferred Merchandise rate reverting back to $71.66 per container.
Recommendation: Board resolve to (1) approve the amendment to Port of Los Angeles Tariff No. 4, Items 520 and 550-033, subject to the California Association of Port Authorities review and approval, and authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities procedure; (2) adopt Temporary Order No.__________ and Permanent Order No.__________ to amend Items 520 and 550-033 in the Port of Los Angeles Tariff No. 4, Section Five, “Transferred Merchandise-Wharfageâ€; (3) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the amendments to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); (4) authorize the Board Secretary to certify to the adoption of the Temporary Order by the Board and cause the same to be published once in a newspaper, printed and published in the City of Los Angeles, to take effect prior to adoption by Ordinance for a period not-to-exceed 90 days pursuant to Charter Section 653(b) and transmit the Temporary Order to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website as regulated by the Federal Maritime Commission; and (5) transmit the Permanent Order and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website as regulated by the Federal Maritime Commission after the effective date of the Ordinance.
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: The Port of Los Angeles (POLA) is proposing to increase wharfage rates on petroleum products, to keep consistent with prevailing rates. The last increase was in 2005. Staff is recommending the Board of Harbor Commissioners (Board) adopt a Permanent Order amending POLA Tariff No. 4, Items 550/560-050, 550/560-600, 550/560-605, 550/560-610, 550/560-615, 550/560-620, and 550/560-625 increasing liquid bulk wharfage rates (per barrel) for crude oil and bunker fuel from $0.072 to $0.085, for other refined petroleum products from $0.085 to $0.096, and for petrochemicals (per kilo ton) from $1.64 to $1.76. These increases will bring wharfage rates for these commodities equal to that of the Port of Long Beach (POLB). The commencement date for these increases will be January 1, 2013.
Recommendation: Board resolve to (1) approve the amendment to Items 550/560-050, 550/560-600, 550/560-605, 550/560-610, 550/560-615, 550/560-620, and 550/560-625, subject to the California Association of Port Authorities review and approval, and that the Board authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities procedure; (2) adopt Permanent Order No.___________ to amend Items 550/560-050, 550/560-600, 550/560-605, 550/560-610, 550/560-615,
550/560-620, and 550/560-625 in the Port of Los Angeles Tariff No. 4, Section Five, Petroleum and Petrochemical Products; (3) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the proposed Amendment to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); and (4) after the effective date of the Ordinance, authorize the Board Secretary to transmit the Order and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website as regulated by the Federal Maritime Commission.
Construction
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: This contract is for the construction of the Berths 121-126 and Berths 212-216 Alternative Maritime Power (AMP) project. This work will provide AMP vaults and outlets at Berths 121-126 (Yang Ming) and Berths 212-216 (Yusen Container Terminal). The lowest responsive and responsible bidder is Cupertino Electric, Inc., located in Santa Fe Springs, California. The contract amount plus a 5% contingency is $31,290,000 and the contract duration is 450 calendar days. This project is state funded under the Proposition 1B, Goods Movement Emission Program up to $10,000,000.
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 21 of the proposal schedule to Cupertino Electric, Inc. in the amount of $29,800,000; that a 5% contingency not included in the original contract amount be applied for a total authorization of $31,290,000; and authorize payment from the City of Los Angeles Harbor Department Construction Account. The contract time for performance of the work will be 450 calendar days from the Notice to Proceed; (4) delegate and authorize the Executive Director to adjust final bid quantities and accept the construction contract upon its completion in accordance with City Charter 655 (g); and (5) adopt Resolution No. ____________.
Environmental Management
9. Re: RESOLUTION NO. ____________ - ADOPTION OF FINAL INITIAL STUDY/MITIGATED NEGATIVE DECLARATION FOR BERTHS 195-200A, WWL VEHICLE SERVICES AMERICAS, INC. PROJECT (LOS ANGELES HARBOR DEPARTMENT APPLICATION FOR DISCRETIONARY PROJECT NO. 110315-033; STATE CLEARINGHOUSE NO. 2012051056)
SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) adopt the Final Initial Study/Mitigated Negative Declaration (IS/MND) for the proposed Berths 195-200A, WWL Vehicle Services Americas, Inc. (WWL) Project (Project), along with the comments and responses to comments; approve the Project described in the Final IS/MND; make specific findings regarding the environmental impacts of the Project and mitigation measures to reduce or avoid such impacts; and adopt a Mitigation Monitoring and Reporting Program. The Project includes improvements to the WWL vehicle processing terminal, including maintenance and rehabilitation of the existing wharf infrastructure, construction of additional railroad loading tracks, and adjustments to the facility’s leased area in response to the Berth 200 Rail Yard Project. The Project also provides for a lease extension of up to 15 years. Approval of this lease extension will be brought before the Board in a separate future action.
Recommendation: Board resolve to (1) find that, based on the information contained in this report and the Final Initial Study/Mitigated Negative Declaration for the Berths 195-200A, WWL Vehicle Services Americas, Inc. Project, and with incorporation of mitigation measures contained in the Initial Study/Mitigated Negative Declaration, that the project would not have a significant effect on the environment pursuant to Public Resources Code § 21080 and the State California Environmental Quality Act (CEQA) Guidelines § 15070; (2) adopt, pursuant to State CEQA Guidelines § 15074, the Final Initial Study/Mitigated Negative Declaration for the Berths 195-200A, WWL Vehicle Services Americas, Inc. Project which (a) has been completed in compliance with the CEQA, with the State CEQA Guidelines, and the Los Angeles City CEQA Guidelines; (b) was presented to the Board for review and the Board reviewed and considered the information contained in the Final Initial Study/Mitigated Negative Declaration prior to approving the project; and (c) reflects the independent judgment and analysis of the City of Los Angeles Harbor Department as the CEQA Lead Agency; (3) find that all information added to the Final Initial Study/Mitigated Negative Declaration after the public review period, but before adoption, merely clarifies, amplifies, or makes insignificant modifications, and recirculation is not necessary; (4) adopt the Mitigation Monitoring and Reporting Program contained in the Final Initial Study/Mitigated Negative Declaration as required by Public Resources Code Section 21081.6 and State CEQA Guidelines Section 15074. The Mitigation Monitoring and Reporting Program is designed to ensure compliance with the mitigation measures adopted to mitigate or avoid significant effects on the environment, and identifies the responsibilities of the City of Los Angeles Harbor Department as lead agency and other applicable entities, to monitor and verify project compliance with those mitigation measures and conditions of project approval; (5) in consideration of the Final Initial Study/Mitigated Negative Declaration, together with the comment letters received and the response to comments, approve the Berths 195-200A, WWL Vehicle Services Americas, Inc. Project; (6) direct the Real Estate Division to incorporate by reference the Final Initial Study/Mitigated Negative Declaration, mitigation measures, lease measures, and the Mitigation Monitoring Reporting Program contained in the Final Initial Study/Mitigated Negative Declaration into any and all permits, lease agreements, or assignments encompassed in the approved Project; (7) authorize the Environmental Management Division to file the Notice of Determination for the subject project with the Los Angeles City and County Clerks; and (8) adopt Resolution No. ____________.
I. CLOSED SESSION
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Al Larson Boat Shop concerning a proposed permit:
Property: 1046 Seaside Avenue,
San Pedro, California
City Negotiator: Jack Hedge
Tenant Negotiator: Jack Wall
Negotiating Parties: City and Al Larson Boat Shop
Under Negotiation: Price and Terms
2. 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: two cases.
ADJOURNMENT IN MEMORY OF DON MOSMAN, FORMER PORT DEPUTY EXECUTIVE DIRECTOR