Harbor Commission

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

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 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 proposed Revocable Permit No. 13-21 granted to Justice for Murdered Children:

Property: Berth 77, Ports O'Call Village

City Negotiator: Jack Hedge

Tenant Negotiator: LaWanda Hawkins

Negotiating Parties: City and Justice for Murdered Children

Under Negotiation: Price and Terms

C. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS

D. EXECUTIVE DIRECTOR REMARKS

E. REPORTS OF THE COMMISSIONERS

F. BOARD COMMITTEE REPORTS

Audit Committee of August 21, 2014

G. APPROVAL OF THE MINUTES

August 7, 2014 Regular Meeting

H. PRESENTATION

1. Eastview Little League – Shawn Stafford, President

2. Tall Ships Recap – Cynthia Ruiz, Deputy Executive Director

3. 2014 Strategic Plan Update – Eugene D. Seroka, Executive Director

I. BOARD REPORTS OF THE EXECUTIVE DIRECTOR

CONSENT ITEMS (1 - 5)

Business and Trade Development

1. Re: RESOLUTION NO. ____________ - APPROVAL OF FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND OZBURN-HESSEY LOGISTICS, LLC, FTZ 202, SITE 40

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 Ozburn-Hessey Logistics, LLC, and (OHL) to activate its warehouses within FTZ 202, Site 40 located at 1710 W. Baseline Road, Rialto, California 92376. Site 40 is a 718,000 square footage building on a 32-acre property. OHL will be operating its warehouses 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 Ozburn-Hessey Logistics, 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) 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.____________.

2. Re: RESOLUTION NO. ____________ - APPROVAL OF FIRST AMENDMENT TO FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 13-3152 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND INTERAMERICAN MOTOR COMPANY, FTZ 202, SITE 34

Transmittal 1
Transmittal 2

SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), as the Foreign-Trade Zone (FTZ) 202 grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. On January 1, 2014, the Harbor Department entered into FTZ Operating Agreement No. 13-3152 (Agreement No. 13-3152) with Interamerican Motor Company (IMC) for Site 34 as a Multi-User Zone Site to provide FTZ services to the public. However, IMC has elected not to handle FTZ services to the public and as such, requires their operating agreement to be amended to a Single-User Zone. Under FTZ Board rules, Site 34 will now be classified as a Single-User Zone Site. A classification change from a Multi-User Zone Site operator to a Single-User Zone Site operator requires the Harbor Department to amend Agreement No. 13-3152. This change will increase the annual administration fee to the Harbor Department from $7,750 for Multi-User Zone Site operator to $10,000 for Single-User Zone Site operator (Per FTZ Tariff No.2). Also, as part of the changes, all updated City of Los Angeles contractual provisions will be incorporated into Agreement No. 13-3152. All remaining terms and conditions of Agreements shall remain in full force and effect.
Recommendation: Board resolve to (1) approve the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 13-3152 between the City of Los Angeles Harbor Department and Interamerican Motor Company; (2) direct the Board Secretary to transmit the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 13-3152 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 First Amendment to Foreign-Trade Zone Operating Agreement No. 13-3152; and (4) adopt Resolution No.____________.

3. Re: RESOLUTION NO. ____________ - APPROVAL OF FIRST AMENDMENTS TO FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NOS. 13-3148 AND 13-3149 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PUMA NORTH AMERICA, INC., FTZ 202, SITE 9 AND SUITE 28

Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4

SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), as the Foreign-Trade Zone (FTZ) 202 grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. On September 1, 2013, the Harbor Department entered into two FTZ Operating Agreements with Puma North America Inc., (Puma) for Site 9 located in Torrance, California and Site 28 located in Carson, California as Multi-User Zone Sites to provide FTZ services to the public. However, Puma has elected not to handle FTZ services to the public and as such, requires their operating agreement to be amended to a Single-User Zone. Under FTZ Board rules, both Puma sites will now be classified as Single-User Zone sites. A classification change from a Multi-User Zone Site operator to a Single-User Zone Site operator requires the Harbor Department to amend FTZ Operating Agreement No. 13-3148 (Agreement No. 13-3148) and FTZ Operating Agreement 13-3149 (Agreement No. 13-3149). This change will increase the annual administration fee to the Harbor Department from $7,750 for Multi-User Zone Site operator to $10,000 for Single-User Zone Site operator (Per FTZ Tariff No.2). Also, as part of the changes, all updated City of Los Angeles contractual provisions will be incorporated into Agreement No. 13-3148 and Agreement No. 13-3149. All remaining terms and conditions of the Agreements shall remain in full force and effect.
Recommendation: Board resolve to (1) approve the proposed First Amendments to Foreign-Trade Zone Operating Agreement No. 13-3148 and Foreign-Trade Zone Operating Agreement No. 13-3149 between the City of Los Angeles Harbor Department and Puma North America Inc.; (2) direct the Board Secretary to transmit the proposed First Amendments to Foreign-Trade Zone Operating Agreement No. 13-3148 and Foreign-Trade Zone Operating Agreement No. 13-3149 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 First Amendments to Foreign-Trade Zone Operating Agreement No. 13-3148 and Foreign-Trade Zone Operating Agreement No. 13-3149; and (4) adopt Resolution No.____________.

Engineering

4. Re: RESOLUTION NO. ____________ - SOLAR-POWERED CUSTOMER GENERATION INTERCONNECTION AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND THE CITY OF THE LOS ANGELES DEPARTMENT OF WATER AND POWER FOR THE PHOTOVOLTAIC SOLAR POWER SYSTEM ON THE ROOF OF THE BERTH 200 RAIL YARD MAINTENANCE BUILDING

Transmittal 1

SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) will be constructing a 63 kilowatt (kW) rooftop photovoltaic (PV) solar power system (PV System) at the Berth 200 Rail Yard Maintenance Building. With the installation of this PV System, the Harbor Department is considered a self-generating customer. As such, the Harbor Department is required to enter into a City of Los Angeles Department of Water and Power (LADWP) Solar-Powered Customer Generation Interconnection Agreement (Agreement). The proposed Agreement will be in effect for three years from its effective date. By signing the Agreement, the Harbor Department agrees to be bound by the Agreement’s terms and conditions.
Recommendation: Board resolve to (1) approve the proposed three-year City of Los Angeles Department of Water and Power Solar-Powered Customer Generation Interconnection Agreement for the Berth 200 Rail Yard Maintenance Building rooftop photovoltaic solar power system; (2) authorize the Executive Director to execute and the Board Secretary to attest to the City of Los Angeles Department of Water and Power Solar-Powered Customer Generation Interconnection Agreement for and on behalf of the Board; (3) adopt Resolution No.____________; and (4) direct the Board Secretary to transmit four copies of Agreement to the City of Los Angeles Los Angeles Department of Water and Power Board of Commissioners for approval and request two executed copies be returned to the Harbor Department.

Environmental Management

5. Re: RESOLUTION NO. ____________ - APPROVAL OF A COOPERATIVE AGREEMENT WITH THE ENVIRONMENTAL PROTECTION AGENCY AND GRANT AGREEMENTS WITH S.A. RECYCLING LLC, AND APM TERMINALS PACIFIC LTD. PURSUANT TO THE 2013 DIESEL EMISSIONS REDUCTION ACT FUNDING OPPORTUNITY

Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4

SUMMARY: On January 23, 2014, the Los Angeles Board of Harbor Commissioners (Board) authorized staff to submit a proposal for grant funding pursuant to the Environmental Protection Agency’s 2013 Diesel Emissions Reduction Act (DERA) Funding Opportunity - Projects to Improve Air Quality at Ports. The City of Los Angeles Harbor Department’s (Harbor Department) application for the “Port of Los Angeles Cargo Handling Equipment Retrofit Project” (Project) was selected for funding by the United States Environmental Protection Agency (EPA), which administers the DERA Assistance Program. The application requested $469,000 to assist two Port of Los Angeles (Port) tenants in funding 14 equipment retrofit projects. The Harbor Department was awarded the full funding request of $469,000, which covers 100% of the Project at no cost to the Harbor Department. In order to authorize the Harbor Department to administer the award, the Board is requested to (1) approve and accept the Cooperative Agreement with the EPA and (2) approve subrecipient Grant Agreements with two subgrantees, S.A. Recycling LLC (S.A. Recycling) and APM Terminals Pacific Ltd. (APM Terminals).
Recommendation: Board resolve to (1) approve and accept the Cooperative Agreement between the United States Environmental Protection Agency and the City of Los Angeles Harbor Department; (2) approve the subrecipient Grant Agreement between the City of Los Angeles Harbor Department and S.A. Recycling LLC to retrofit 13 pieces of cargo handling equipment using funds awarded under the 2013 Diesel Emissions Reduction Act Funding Opportunity - Projects to Improve Air Quality at Ports; (3) approve the subrecipient Grant Agreement between the City of Los Angeles Harbor Department and APM Terminals Pacific Ltd. to retrofit one piece of cargo handling equipment using funds awarded under the 2013 Diesel Emissions Reduction Act Funding Opportunity - Projects to Improve Air Quality at Ports; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Agreements for and on behalf of the Board; and (5) adopt Resolution No.____________.

REGULAR ITEM NO. 6

Real Estate

6. Re: ORDER NO. ____________ - APPROVE PERMIT NO. 907 WITH SSA PACIFIC, INC. FOR PREMISES AT BERTHS 53-55

Transmittals

SUMMARY: Permit No. 714 (P. 714) between the City of Los Angeles Harbor Department (Harbor Department) and Stevedoring Services of America, currently known as SSA Pacific, Inc. (SSA), grants use of property located at Berths 52-55 and adjacent wharf and backland for the docking of vessels for the assembling, distributing, loading and unloading of palletized fresh fruit cargo. SSA has been on a month-to-month status since November 2009. This proposed successor Permit would be effective November 1, 2012, for a period of five years, with an option to extend for an additional year. Under the proposed Permit, SSA will have preferential use of Berths 53-55 and adjacent wharf and backland from December 1st through April 30th of each year and ten parking spaces all year. The rent will be based on the higher of a Minimum Annual Guarantee (MAG) or the cumulative Port of Los Angeles Tariff No. 4 (Tariff) fees charged.
Recommendation: Board resolve to (1) concur with the termination of the month-to-month holdover tenancy under Permit No. 714 with Stevedoring Services of America (currently known as SSA Pacific, Inc.) upon execution of the proposed Permit; (2) make the following findings:
a. Rate of Return: The expected rate of return of 6.89 percent is reasonable given the seasonal use of Berths 53-55 and adjacent wharf and backland due to the unique nature of the break-bulk fruit operations, the density of high-paying seasonable jobs in the local area, the need for such a facility at the Port of Los Angeles to support the U.S. West Coast market, the existing condition of the premises including the restrictive load limits on the wharf, and the ability to use the premises during the remainder of the year for other Port of Los Angeles requirements.

b. Payment Guaranty: SSA Pacific, Inc. is not required to provide a letter of credit or other means to secure payment of its obligations under the proposed Permit because it is a long-time tenant in good standing providing a unique service at the Port of Los Angeles.

c. Environmental Obligations: Since the improvements on the premises are the property of the City of Los Angeles Harbor Department, and since there is no baseline report for the premises, it is reasonable for the City of Los Angeles Harbor Department to assume the liability for the condition of the premises other than for contamination caused by SSA Pacific, Inc. or its affiliates. Accordingly, the Board finds that SSA Pacific, Inc. should only be responsible for term releases and not for any existing condition of the premises unless the condition was the result of a term release by SSA Pacific, Inc. or its predecessor, Stevedoring Services of America.

(3) approve Permit No. 907 with SSA Pacific, Inc.; (4) direct the Board Secretary to transmit the proposed Permit with SSA Pacific, Inc. to the City Council for approval pursuant to Section 606 of the City Charter; (5) authorize the Executive Director to execute and the Board Secretary to attest to the Permit with SSA Pacific, Inc. after approval by the City Council; and (6) adopt Order No.____________.