SPECIAL MEETING AGENDA
MONDAY, OCTOBER 24, 2016 AT 5:00 P.M.
Board of Harbor Commissioners
President, Ambassador Vilma S. Martinez
Vice President David Arian
Commissioner Patricia Castellanos
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
__________________________________________________________________________________
SPECIAL MEETING AGENDA
MONDAY, OCTOBER 24, 2016 AT 5:00 P.M.
THE OPEN SESSION ITEMS WILL BEGIN NO SOONER THAN 6:00 P.M.
Board of Harbor Commissioners
President, Ambassador Vilma S. Martinez
Vice President David Arian
Commissioner Patricia Castellanos
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
ORDER OF BUSINESS
A. Roll Call
CLOSED SESSION
B. Closed Session Items
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
California Cartage Company, Inc., v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BC53607
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed permit amendment with Eagle Marine Services, Ltd.:
Property: Pier 300, Terminal Island, CA
City Negotiator: Eugene D. Seroka
Tenant Negotiator: Farid Salem
Negotiating Parties: City and Eagle Marine Services, Ltd.
Under Negotiation: Price and Terms
OPEN SESSION
C. Executive Director Remarks
D. Comments from the Public on Non-Agenda Items
E. Report from the Neighborhood Council Representatives
F. Reports of the Commissioners
G. Board Committee Reports
ACTA Meeting of October 13, 2016
H. Approval of the Minutes
Regular Meeting of October 6, 2016
I. Presentation
J. Level I Coastal Development Permit Report
K. Board Reports of the Executive Director
Consent Items (1 & 2)
Waterfront & Commercial Real Estate
1. RESOLUTION NO.____________ - APPROVE REVOCABLE PERMIT NO. 13-21 AT PORTS O' CALL VILLAGE
Summary: Staff requests approval of Revocable Permit No. 13-21 (RP 13-21) with Justice for Murdered Children (JMC) for use of City of Los Angeles Harbor Department (Harbor Department) property consisting of 282 square feet (s.f.) of office space at Ports O' Call Village (POCV) in San Pedro for zero compensation. The use of the premises is to provide unique community support services to families of murdered children that occurred in or around the Harbor District area, and not for any other purpose. RP 13-21 is to be effective retroactively to November 1, 2012, is revocable upon 30 days' notice by either party and shall not be effective for more than 12 months following approval by the Board of Harbor Commissioners. This space commonly referred to as P-7B is not comparable to the other retail spaces located within the POCV as it is small in size and located on the upper level, and inconveniently inaccessible to the general public.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III, Class 1(14) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) find that is in the best interest of the City of Los Angeles Harbor Department to deviate from the rate of return, minimum guarantee targets, and security deposit requirements of the Port of Los Angeles Leasing Policy Sections VII (1) (2) (3) to allow for zero rent due to the continued benefit to the community that has been provided by Justice for Murdered Children since 1996; (3) approve proposed Revocable Permit No. 13-21 with Justice for Murdered Children; (4) authorize the Executive Director to execute and the Board Secretary to attest to Revocable Permit No. 13-21; and (5) adopt Resolution No.____________.
Executive Office
2. RESOLUTION NO.____________ - APPROVAL OF HARBOR COMMUNITY BENEFIT FOUNDATION’S SELECTION OF CALIFORNIA COMMUNITY FOUNDATION AS INDEPENDENT FINANCIAL MANAGER FOR THE AIR QUALITY MITIGATION FUND AND THE TRANSFER OF PORT COMMUNITY MITIGATION TRUST FUNDS PURSUANT TO HARBOR DEPARTMENT AGREEMENT NO. 15-3365
Transmittal 1
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve the Harbor Community Benefit Foundation's (HCBF) selection of California Community Foundation as the Independent Financial Manager (IFM) for the Air Quality Mitigation Fund (AQMF) and approve the transfer of $5,226,944 into the new AQMF special program account with California Community Foundation. Additionally, it is requested that the Board approve advance administration funds in the amount of $250,000 from the AQMF special program account to administer development and issuance of the Initial Requests for Proposals as detailed in the Memorandum of Agreement Among the City of Los Angeles, acting through the Board of Harbor Commissioners, the Harbor Community Benefit Foundation, and the China Shipping Petitioners Regarding the Independent Air Quality Mitigation Program Required by the China Shipping Amended Stipulated Judgment, Harbor Department Agreement No. 15-3365 (MOA) paragraph 5.g.i. The HCBF, an independent nonprofit organization established in connection with the Tra-Pac Settlement Agreement was also selected to administer and manage the AQMF, created pursuant to the MOA. The MOA requires the utilization of an IFM by HCBF to hold the AQMF and stipulates that the Board must approve the agreement between HCBF and the IFM and requests for disbursements before any funds are released.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve Harbor Community Benefit Foundation’s agreement with the California Community Foundation acting as the Independent Financial Manager for the Air Quality Mitigation Funds; (3) authorize the Executive Director or his designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the distribution of funds in one lump sum payment of $5,226,944 to the new Air Quality Mitigation Fund special program account held by the Independent Financial Manager to be used in accordance with Harbor Community Benefit Foundation’s request; and (4) approve an advance of $250,000 in administration costs to HCBF from the new AQMF special program account to administer development and issuance of the Initial Requests for Proposals. (5) adopt Resolution No.____________.
Regular Items (3 – 9)
Executive Office
3. RESOLUTION NO.____________ - APPROVAL OF HARBOR COMMUNITY BENEFIT FOUNDATION'S COMMUNITY BENEFIT GRANT PROGRAM, ROUND 4 SELECTION OF FIFTEEN PROJECTS TO RECEIVE GRANT AWARDS AND THE TRANSFER OF PORT COMMUNITY MITIGATION TRUST FUNDS
Transmittal 1
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve Harbor Community Benefit Foundation's (HCBF) selection of 15 projects to receive awards from the Community Benefit Grant Program, Round 4 and transfer $800,000 from the Port Community Mitigation Trust Fund (PCMTF) to HCBF. The PCMTF was established by the City of Los Angeles Harbor Department (Harbor Department) for the purpose of funding appropriate mitigation projects and grants addressing port-related impacts for the communities of San Pedro and Wilmington. The HCBF, an independent nonprofit organization established to operate the PCMTF, is responsible for identifying qualifying projects to receive grant funding from the PCMTF to be approved by the Board. The HCBF Board of Directors has selected 15 projects to receive funding for the fourth round of the Community Benefit Grant Program, and is requesting Board approval of the award recipients and transfer of funds from the PCMTF, in accordance with the requirements of the TraPac Memorandum of Understanding (MOU) and Operating Agreement of the TraPac MOU (Operating Agreement). The proposed projects have a Tidelands nexus and will mitigate, reduce and address the Port of Los Angeles' (Port) impact on the local communities of in Wilmington and San Pedro. Upon approval, $800,000 will be transferred from the PCMTF to HCBF for 15 total grant awards. Upon the transfer of funds from the PCMTF to HCBF, HCBF will be financially responsible for the proposed projects and for the disbursement of funds to grantees in accordance with the TraPac MOU, Operating Agreement and the Grant Agreements. The Harbor Department funded the original PCMTF, but no additional payments from the Harbor Department will be required to fund this request.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve Harbor Community Benefit Foundation's selection of 15 projects to receive awards from the Community Benefit Grant Program Round 4, funded by the Port Community Mitigation Trust Fund; (3) authorize the Executive Director or his designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the distribution of funds in one lump sum payment of $800,000 from J.P. Morgan Private Bank to the Harbor Community Benefit Foundation to be used in accordance with Harbor Community Benefit Foundation's request; and (4) adopt Resolution No.____________.
Engineering
Summary: Staff requests the Board of Harbor Commissioners (Board) approve the Memorandum of Understanding (MOU) between the Los Angeles County Metropolitan Transportation Authority (LACMTA) and the City of Los Angeles, Harbor Department (Department) for the expansion of the Metro Bike Share Program (Program). This MOU, if approved by the Board and the LACMTA Board of Directors, defines the respective roles and responsibilities of each agency to expand LACMTA's County-wide Metro Bike Share Program to include the Wilmington and San Pedro Waterfronts. The overall cost to expand the program to include the Wilmington and San Pedro Waterfronts is $824,280. LACMTA would contribute $334,640, and the Department would pay an equal amount to LACMTA of $334,640. The Department would also supply labor, site preparation, and signage valued at $155,000. The overall cost to operate and maintain the Program is $400,223 for Fiscal Year (FY) 2016/2017. LACMTA would contribute $140,078 in FY 2016/2017, and the Department would contribute $260,145 in FY 2016/2017. The term of the MOU is for three years with the option to extend the term for one renewal period consisting of an additional three years for a total of six years. We anticipate the Metro Bike Share Program will be operational along the Wilmington and San Pedro Waterfronts during Summer 2017.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Memorandum of Understanding between the City of Los Angeles Harbor Department and the Los Angeles County Metropolitan Transportation Authority for a term of three years and authorize the Executive Director to approve one, three-year renewal option; (3) direct the Board Secretary to forward the Memorandum of Understanding (MOU) to the Los Angeles County Metropolitan Transportation Authority (LACMTA) for approval and full execution, and to receive and file the fully executed MOU from LACMTA; (4) authorize the Executive Director to execute and Board Secretary to attest to said Memorandum of Understanding; and (5) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
5. RESOLUTION NO.____________ - PROPOSED LEASE AGREEMENT WITH PACIFIC PLACE OFFICE LLC
Summary: Staff requests approval of a lease for approximately 14,819 square feet (SF) of Class A office space for sixty-four and one half months (64 1/2) with Pacific Place Office LLC for the Topaz building located at 222 W. Sixth Street, 9th Floor, San Pedro, CA. The proposed Lease Agreement includes an option to cancel after the third year. The Lease Agreement is required due to space constraints at the Harbor Administration Building (HAB) that has resulted in the need for additional working space for the Environmental Management Division (EMD). First year base rent will be $34,084 per month at $2.30 per SF per month, totaling approximately $409,008 for the base year before taking into consideration free rent for the first four months. Additionally, there is a $2,000 monthly fee for 40 unreserved parking spaces ($50 per parking space per month) and a $300 monthly fee for 5 reserved parking spaces ($60 per parking space per month). Rent will be adjusted by three percent for each subsequent year of the term. Rent will be $35,121 per month at $2.37 per SF per month for the second year, and $36,058 per month at $2.44 per SF per month for the third year. Parking fees will remain constant over the term of the lease.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f), of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Lease Agreement with Pacific Place Office LLC; (3) direct the Board Secretary to transmit the Lease Agreement to City Council for its approval pursuant to Section 373 of the City Charter; (4) authorize the Executive Director and the Board Secretary to attest to the Lease Agreement upon approval by City Council; and (5) adopt Resolution No.____________.
Port Police
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the Board of Harbor Commissioners accept and enter into a Grant Award, EMU-2016-PU-00474, with the United States Department of Homeland Security (DHS) Federal Emergency Management Agency (FEMA), for the reimbursement of funds allocated to the Los Angeles Harbor Department (Harbor Department) under the Fiscal Year (FY) 2016 Port Security Grant Program (PSGP). If approved, the proposed Federal grant will be in the amount of $1,875,000 with an award date of September 1, 2016. Items approved for grant reimbursement subsequent to expenditure by the Harbor Department are as follows: Port of Los Angeles (POLA) Information Security Management System Integration and Maintenance $750,000; POLA Department Operation Center (DOC) Phase II $375,000; and POLA Security System Maintenance $750,000. The award is for a three year period ending August 31, 2019. A 25% cost share is required under this FY 2016 PSGP, which will be funded by the Harbor Department. The Harbor Department’s total cost share for the projects is $625,000, for a total cost of $2,500,000 for all three projects.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) and Article III Class 1(6) of the Los Angeles City CEQA Guidelines; (2) approve the Grant Award Agreement, Grant No. EMU-2016-PU-00474 for FY 2016 PSGP between the City of Los Angeles Harbor Department and the United States Department of Homeland Security, Federal Emergency Management Agency for reimbursement of funds allocated to the Harbor Department under the Fiscal Year 2016 Port Security Grant Program; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Obligating Document for the Award; (4) authorize the Harbor Department to implement the projects approved for funding by the DHS; and (5) adopt Resolution No.____________.
Engineering
Summary: Staff requests the Board of Harbor Commissioners (Board) adopt a Resolution and approve the Amended and Restated Alameda Corridor Use and Operating Agreement (“Amended and Restated UOAâ€), by and among the City of Los Angeles Harbor Department, the Port of Long Beach, Union Pacific Rail Road (UPRR), Burlington Northern Santa Fe (BNSF), and the Alameda Corridor Transportation Authority (ACTA), which among other things: 1) incorporates the amendments set forth in the First Amendment dated as of July 5, 2006; 2) replaces the Operating Committee with an alternative decision making process for the management of Alameda Corridor maintenance and operations; and 3) removes construction related provisions and updates certain other provisions to reflect current conditions and practices.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Amended and Restated Alameda Corridor Use and Operating Agreement (Amended and Restated UOA) by and among the City of Los Angeles Harbor Department, the Port of Long Beach, Union Pacific Rail Road (UPRR), Burlington Northern Santa Fe (BNSF), and the Alameda Corridor Transportation Authority (ACTA); (3) direct the Board Secretary to transmit the Amended and Restated UOA to the City Council for approval pursuant to Charter Section 373 of the City Charter; (4) authorize the Executive Director to execute and Board Secretary to attest to said Amended and Restated UOA; and (5) adopt Resolution No.____________.
Cargo & Industrial Real Estate
8. RESOLUTION NO.____________ - APPROVE NINTH AMENDMENT TO PERMIT NO. 733 WITH EAGLE MARINE SERVICES, LTD
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff recommends that the Board of Harbor Commissioners ("Board") approve a proposed Ninth Amendment to Permit No. 733, as amended ("Permit"), with Eagle Marine Services Ltd. ("EMS"). This Amendment would extend the term of the Permit by 16 years, from the existing end date in 2027 to a new end date in 2043. The proposed extension would result in an overall term of 50 years, and therefore, requires that the Permit be approved with findings that it is in the best interest of the City of Los Angeles in accordance with the City Charter. The proposed Permit has been assessed pursuant to the California Environmental Quality Act (CEQA) and analyzed in detail in the Addendum to the 2012 Final Environmental Impact Statement/Environmental Impact Report for the Berths 302-306 [APL] Container Terminal Project, ("Final EIR") attached for the Board's consideration. The Addendum and the 2012 EIR have been made publicly available and are posted on the Harbor Department's website. This Amendment will change some terms of the existing Permit, most notably to authorize up to 2.4 million twenty foot equivalent unit (TEUs) that is substantially downsized as compared to the 3.2 million TEUs approved in the Final EIR. The Permit would also apply Tariff No. 4 in a manner to broaden the applicability of the Tariff beyond the scope provided by the original terms of the Permit, as amended. Finally, as a result of the extension of term, and the resultant total throughput of 2.4 million TEU’s,  projected revenue from this facility will grow from $900 million (NPV of $692 million) at the end of the existing term in 2026 to a projected revenue of $2,555 million (or $1,375 million NPV) by 2043.Â
Recommendation: Board resolve to (1) consider the Addendum to the certified 2012 Final Environmental Impact Report along with the 2012 Final Environmental Impact Statement/Environmental Impact Report in relation to the terms of the proposed Ninth Amendment to Permit No. 733; (2) find that, in accordance with the provisions of the California Environmental Quality Act Guidelines Section 15164, the proposed Ninth Amendment to Permit No. 733 will not result in any new significant environmental effects or any substantially more severe effects than previously analyzed in the certified 2012 Final Environmental Impact Report; (3) authorize the Environmental Management Division to file a Notice of Determination with the Los Angeles County Clerk and the Los Angeles City Clerk; (4) approve the Ninth Amendment to Permit No. 733 with Eagle Marine Services, Ltd., with the finding that such Amendment is in the best interest of the City of Los Angeles, including the attached revised Mitigation Monitoring and Reporting Program and the Environmental Compliance Plan; (5) direct the Board Secretary to transmit the Ninth Amendment to the City Council for approval pursuant to Charter Sections 606 and 607(a) of the City Charter, noting that, under Section 607(a) of the Charter, extending the term of the Permit to 50Â years requires approval with findings that doing so is in the best interest of the City of Los Angeles, pursuant to a two-thirds vote by City Council, or a three-fourths vote by City Council over Mayoral veto; (6) authorize the Executive Director to execute and the Board Secretary to attest to the Ninth Amendment upon approval by City Council; and (7) adopt Resolution No.____________.
Cargo & Industrial Real Estate
9. RESOLUTION NO.____________ - ORDER APPROVING ORDINANCE AND NOTICE OF SALE AUTHORIZING SALE BY ORAL BID AUCTION OF SURPLUS LAND LOCATED ON JOHN S. GIBSON BOULEVARD
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests approval of an Order authorizing the sale by oral bid auction of 13.75 acres of surplus real property located in the Harbor District between John S. Gibson Boulevard and the CA-110 Freeway, and the draft Ordinance and Notice of Sale to be transmitted to the City Council for approval. The property is owned by the City of Los Angeles Harbor Department (Harbor Department) and was previously declared surplus by the Board of Harbor Commissioners on November 10, 2015 (Board Resolution 15-7876). The surplus real property has no current or foreseeable utility to the Harbor Department beyond the two small parcels currently leased to cellular phone providers for transmission towers. The land does not lend itself to any useful development for the Harbor Department due to its extreme slope and very limited buildable areas, among other reasons. As a result of these limitations, the minimum bid price determined by staff is $1,218,000.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Section 12 of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Order, draft Ordinance, and Notice of Sale authorizing the sale by oral bid auction of certain surplus real property located in the Harbor District adjacent to John S. Gibson Boulevard and owned by the City of Los Angeles Harbor Department; (3) approve the minimum bid price of One Million Two Hundred Eighteen Thousand Dollars ($1,218,000); (4) direct the Board Secretary to transmit the Order, draft Ordinance, and Notice of Sale to the City Council requesting for approval of the sale, pursuant to Division 7 Chapter 1 Article 4 of the City Charter; (5) adopt Order No.____________; and (6) adopt Resolution No.____________.
L. Adjournmen