AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, DECEMBER 16, 2010 AT 8:30 A.M.
BANNING'S LANDING COMMUNITY CENTER
100 E. WATER STREET, WILMINGTON, CA
BOARD OF HARBOR COMMISSIONERS
President Cindy Miscikowski
Vice President David Arian
Commissioner Kaylynn L. Kim
Commissioner Robin M. Kramer
Commissioner Douglas P. Krause
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 REPORTS
F. APPROVAL OF MINUTES
Minutes of the Special Meetings of July 22, 2010 and September 27, 2010 for approval.
G. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 5)
Environmental Management
SUMMARY: The Clean Air Action Plan Technology Advancement Program (TAP) Advisory Committee has reviewed and recommended funding for the Vision Motor Corporation (Vision Motor) of Pacific Palisades, California, Hydrogen Fuel Cell Heavy Duty Class 8 Zero Emission Terminal Tractor and Short-Haul Truck Demonstration Project (Project). The Project would demonstrate one (1) zero emission hydrogen fuel cell/plug-in electric powered on-road truck and one (1) zero emission hydrogen fuel cell/plug-in electric off road yard tractor. The cost is $425,000, in a contract to be entered into and administered by the Port of Long Beach (POLB), with costs to be shared by the City of Los Angeles Harbor Department (Harbor Department). The proposed action is to approve a Supplemental Cost Share Agreement, under which, the Harbor Department will reimburse POLB for fifty percent (50%) of the cost in the amount of $212,500.
Recommendation: Board resolve to (1) approve the Supplemental Cost Share Agreement between the City of Los Angeles Harbor Department and Port of Long Beach for the reimbursement of $212,500 to the Port of Long Beach from the Harbor Department as established by the Clean Air Action Plan Master Cost Share Agreement No. 2546; (2) authorize the Executive Director to execute and the Board Secretary to attest to said Supplemental Cost Share Agreement, for and on behalf of the Board; and (3) adopt Resolution No. _________.
SUMMARY: Staff requests approval of a Memorandum of Understanding (MOU) among the City of Los Angeles Harbor Department (Harbor Department), the State of California Department of Transportation (State), and the Alameda Corridor Transportation Authority (ACTA) on the temporary relocation of peregrine falcon nesting habitat (Transmittal 1) as part of the replacement of the State’s Schuyler Heim Bridge. The Harbor Department would agree to allow the State to relocate an existing peregrine falcon nesting habitat located on the Schuyler Heim Bridge to the Harbor Department’s Badger Avenue Railroad Bridge during construction of the new bridge, as well as all necessary access to Harbor Department property to accomplish the relocation. The nest will be relocated back to the new Schuyler Heim Bridge once construction is complete.
Recommendation: Board resolve to (1) approve the Memorandum of Understanding among the City of Los Angeles Harbor Department, the State of California Department of Transportation, and the Alameda Corridor Transportation Authority; (2) authorize the Executive Director to execute and the Board Secretary to attest to said Memorandum of Understanding; and (3) adopt Resolution No. __________.
SUMMARY: This proposed Board action is to approve Second Amendments to Diesel Emissions Reduction Act (DERA) Program Grant Subrecipient Agreement Nos. 09-2822 and 09-2820 with Port of Los Angeles (Port) tenants Eagle Marine Services, Ltd. (EMS) and Marine Terminals Corporation (MTC), to: (1) modify tenant equipment listed to receive grant funding, (2) modify the dollar amount of agreements, and (3) extend the term from December 31, 2010 to June 30, 2011. The Subrecipient Agreements were originally approved by the Board of Harbor Commissioners (Board) in December 2009 to allow for distribution by the Harbor Department of DERA grant funds to tenants. First Amendments to the Subrecipient Agreements were approved by the Board in January 2010 to incorporate administrative changes requested by U.S. Environmental Protection Agency (EPA). EPA has verbally approved the proposed changes contained in the Second Amendments, though they are still contingent upon EPA’s execution of a Third Amendment to the Cooperative Agreement between the City of Los Angeles Harbor Department (Harbor Department) and EPA (already approved by the Board in October 2010) that would similarly extend the date for the Harbor Department to receive the DERA funds from the EPA to June 30, 2011.
Recommendation: Board resolve to (1) approve the Second Amendments to Agreement No. 09-2822 with Eagle Marine Services, Ltd. and Agreement No. 09-2820 with Marine Terminals Corporation; (2) authorize the Executive Director to execute and the Board Secretary to attest to said Amendments for and on behalf of the Board; and (3) adopt Resolution No. ________.
Human Resources
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is requesting approval to award an agreement to Western Medical Group to provide professional medical services for a three-year period commencing on February 20, 2011, through February 19, 2014. The services will consist primarily of pre-employment and annual medical examinations, and treatment of initial workplace injuries. Additional services will provide for first aid treatment and compliance with state and federal medical requirements for occupational licenses. Western Medical Group is located in Torrance, California.
Recommendation: Board resolve to (1) find that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for this work to be performed by an independent contractor than by City employees due to the unique experience, expertise, and license necessary to provide medical services; (2) approve the proposed Agreement with Western Medical Group for a not-to-exceed amount of $183,000 and a term of three years (See Transmittal 1); (3) authorize the Executive Director to execute and Board Secretary to attest to said Agreement; and (4) adopt Resolution No. ________.
Real Estate
5. Re: ORDER NO. __________ - PURCHASE AND SALE AGREEMENT CONCERNING THE PRIVATE SALE OF REAL PROPERTY LOCATED AT 223 AND 233 NORTH KING AVENUE IN WILMINGTON AND INTEREST IN THE ABUTTING ALLEY
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) owns unimproved, vacant property located at 223 and 233 North King Avenue in Wilmington and interest in the abutting alley (Transmittal No.1) totaling 18,140 square feet (Subject Property). In May 2010, the Board of Harbor Commissioners (Board) declared the Subject Property as surplus to the needs of the Harbor Department and authorized its sale. The proposed Purchase and Sale Agreement provides for the private sale of the Subject Property “as-is” to State Fish Company, which owns the adjacent property, for a cost of $355,000. The Purchase and Sale Agreement also includes a requirement that should State Fish elect to sell the Subject Property within three years from the close of escrow, it is required to first offer the property for sale to the Harbor Department at the acquisition price, escalated by the Consumer Price Index.
Recommendation: Board resolve to (1) find that the private sale of the Subject Property is in the best interest of the Harbor Department as: a) the Board has previously found that the property is not needed for Harbor Department purposes on May 20, 2010; and b) no other bids or offers were received pursuant to surplus sale noticing requirements, as required under California Government Code Section 54220, the Los Angeles City Charter, and Los Angeles Administrative Code, Division 7, Article IV; (2) find that the public interest allows the private sale of the Subject Property to State Fish Company based on both: a) improved services to existing fishery-related tenants of the Harbor Department; and b) the increase in permanent jobs and tax revenue to the City of Los Angeles, which would result from State Fish Company’s use of the Subject Property in connection with the redevelopment of its existing facility; (3) approve the Purchase and Sale Agreement with State Fish Company authorizing the private sale of the Subject Property to State Fish Company for the estimated amount of $355,000; the exact amount is subject to prorates incurred in escrow, per the terms of the Purchase and Sale Agreement; (4) direct the Board Secretary to transmit the Purchase and Sale Agreement to the Los Angeles City Council pursuant to Section 385 of the City Charter; (5) authorize the Executive Director to execute and the Board Secretary to attest to the Purchase and Sale Agreement and Grant Deed upon approval by City Council; and (6) adopt Order No._________.
REGULAR ITEMS (6 - 11)
Contracts and Purchasing
SUMMARY: The proposed action will expand the Small Business Enterprise (SBE) Program by implementing a Very Small Business Enterprise component. In February 2007, the Board of Harbor Commissioners (Board) adopted the SBE Program and authorized its implementation. The Executive Director set a Harbor Department goal of 25% as the SBE participation percentage for personal service agreements and construction contract awards. Since the implementation of the SBE Program, the Harbor Department has exceeded the 25% goal by awarding approximately 36% of all contract dollars to SBEs. Based on this success rate, staff is recommending that the Board expand the SBE Program by adding a Very Small Business Enterprise (VSBE) component. This component will augment the Harbor Department’s efforts to increase participation of very small businesses in Harbor Department contracts.
Recommendation: Board resolve to (1) instruct staff to implement the Very Small Business Enterprise component to the Small Business Enterprise Program, including any associated administrative requirements and modifications to existing contracting policies and procedures; (2) instruct staff to communicate the provisions of the Very Small Business Enterprise component to all Harbor Department staff, contractors, and the general business community; (3) authorize the Executive Director to set a goal of 5% participation for the Very Small Business Enterprise component which will be included in the Harbor Department’s overall goal of 25% SBE participation; and (4) adopt Resolution No. __________.
Clean Truck Program
SUMMARY: Staff requests that the Board of Harbor Commissioners (Board) approve three amendments to Port of Los Angeles (Port) Tariff No. 4 (Tariff No. 4) in connection with the Clean Truck Program (CTP) that would help reduce emissions from drayage truck operations. The first amendment would expand the definition of “Drayage Truck” to include Class 7 trucks and commencing on July 1, 2011, make Class 7 vehicles subject to the same CTP requirements as Class 8 vehicles, including the existing progressive ban schedule. The second amendment arises out of recent comments received from the Board and strengthens the enforcement of the Tariff’s progressive bans. This amendment addresses the practice of switching cargo loads from compliant trucks to non-compliant trucks (dray-offs) by (i) requiring that Licensed Motor Carriers (LMCs) shall only operate Drayage Trucks that comply with the progressive bans in the Harbor District, and (ii) assessing the Clean Truck Fee on cargo that is switched from a fee-exempt Drayage Truck to a fee-assessable Drayage Truck while in the Harbor District. The California Air Resources Board (ARB) is considering similar action to amend its State Drayage Truck Rule to include regulation of Class 7 vehicles and to address dray-offs at the state level at its December 16, 2010 meeting. Finally, the third amendment changes the reference to “Day Pass” to “Temporary Access Permit” to reflect the actual name of the permit.
Recommendation: Board resolve to (1) approve an amendment to modify Items 2000, 2010, 2015, 2030, 2040, and 2041 in Port of Los Angeles Tariff No. 4, Section 20, Clean Air Action Plan - General Rules and Regulations (Transmittal 1), subject to California Association of Port Authorities (CAPA) review and approval, and authorize the Executive Director to work with CAPA to secure this approval or proceed to take independent action in accordance with CAPA procedure; (2) adopt Temporary Order No. 10-_______ (Transmittal 2) and Permanent Order No. 10-_______ (Transmittal 3) approved as to form and legality by the City Attorney, to amend Items 2000, 2010, 2015, 2030, 2040, and 2041 in Port of Los Angeles Tariff No. 4, Section 20, Clean Air Action Plan - General Rules and Regulations; (3) 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); (4) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and proposed Ordinance approved as to form and legality by the City Attorney (Transmittal 4) approving and authorizing the amendment to Tariff No. 4 pursuant to City Charter 653(a); and (5) authorize the Board Secretary to execute the Temporary Order, Permanent Order and Ordinance amending Tariff No. 4, and upon its publication, transmit the Order and Ordinance to the Chief Wharfinger for implementation of the tariff change and posting the amended Tariff No. 4 to the Port’s website as regulated by the Federal Maritime Commission.
Planning and Economic Development
SUMMARY: Canners Steam is proposing to demolish ancillary exterior equipment at 249 Cannery Street, Terminal Island, to eliminate an imminent risk to human health posed by the presence of asbestos. The scope of the demolition work is limited to the removal of the water conditioning system, which includes ten water tanks and piping, all of which are outside of the Canners Steam Plant (Plant) building and contain asbestos. Staff is recommending the Board of Harbor Commissioners (Board) approve Coastal Development Permit (CDP) No. 10-08, a Level I, non-appealable permit for the proposed project.
Recommendation: Board resolve to (1) find that the proposed project is in conformity 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 (CEQA); (2) authorize the Executive Director to approve the issuance of CDP No. 10-08; consistent with the project description listed on Application for Discretionary Project No. 101103-098; and (3) adopt Resolution No. _________.
Real Estate
SUMMARY: Permit No. 999, between the City of Los Angeles Harbor Department (Harbor Department) and China Shipping (North America) Holding Company, Ltd. (China Shipping Holding) grants nonexclusive use of 72.48 acres at Berths 100-102 for container terminal operations. Permit No. 787 between the Harbor Department and Yang Ming Marine Transport Corporation (YM) grants nonexclusive use of approximately 186 acres at Berths 121-131 for container terminal operations. These adjacent terminals have entered into a cooperative arrangement that allows both terminals to be operated jointly as one terminal. However, the TEU efficiency scale that provides discounts on compensations for higher TEU throughput applicable to each individual permit does not reflect such combined and cooperative terminal operations. The proposed Fourth Amendment to Permit No. 999 and Third Amendment to Permit No. 787 provide for the aggregate number of TEUs processed on the combined Permit Nos. 999 and 787 premises to be utilized for calculation of the applicable TEU charge based on the TEU efficiency scale in each permit. Both amendments are proposed to be effective retroactively on May 1, 2009. The Fourth Amendment to Permit No. 999 also consents to a tenant name change. All other terms and conditions of both permits remain unchanged.
Recommendation: Board resolves to (1) approve the Fourth Amendment to Permit No. 999 with China Shipping Holding; (2) approve the Third Amendment to Permit No. 787 with YM; (3) direct the Board Secretary to transmit the Fourth Amendment to Permit No. 999 and the Third Amendment to Permit No. 787 to the Los Angeles City Council for approval pursuant to Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the amendments upon approval by Los Angeles City Council; and (5) adopt Resolution Nos. __________.
SUMMARY: Concession Agreement No. 518 (CA 518) between the City of Los Angeles Harbor Department (Harbor Department) and Cathay Bank grants use of 16,465 square feet (s.f.) of land and 10,698 s.f. of water located at Berth 31 (210 Whaler’s Walk), San Pedro, for the purposes of construction and operation of marine-related office space, a recreational marine fueling station, sale of marine supplies, a convenience restaurant, and purposes incidental thereto. CA 518 requires that compensation be reset every five years. The proposed Order resetting compensation is for three consecutive five-year periods beginning January 1, 2001 through December 31, 2015. Minimum annual rent for the three compensation reset periods is proposed to be reduced to reflect rental rates charged to adjacent properties for the same periods: $24,201, $29,041, and $29,041 increased by the Consumer Price Index (CPI), respectively. Beginning January 1, 2011, and annually thereafter, minimum annual rent would be increased by the CPI. Since the annual rent paid by Cathay Bank for those periods is greater than the minimum annual rent currently proposed, the proposed compensation rates would result in a rent credit due to Cathay Bank, resulting in Cathay Bank not being required to make monthly rental payments through approximately August 2011.
Recommendation: Board resolve to (1) adopt the Order resetting compensation under CA 518 for the three consecutive five-year periods of January 1, 2001 through December 31, 2015; (2) authorize the Board Secretary to attest to the Order resetting compensation to be paid by Cathay Bank pursuant to Section 4(a) of CA 518; and (3) adopt Order No. __________.
Operations and Development Bureaus
SUMMARY: Staff requests approval of Contract No. 39555 between the City of Los Angeles Harbor Department (Harbor Department) and Corporate Office Interiors of Orange County to provide, deliver, and install pre-owned office furniture to the above subject building facilities, as a part of the Harbor Department’s Space Needs Action Plan (SNAP), at a cost of $641,315. This amount represents a savings of approximately $250,000 versus purchasing new equipment. When approved by the Board of Harbor Commissioners (Board) this action will authorize the above contract for the acquisition of the furniture and installation.
Recommendation: Board resolve to (1) approve Contract No. 39555 with Corporate Office Interiors for the total sum of $641.315 for the purchase, delivery, and installation of pre-owned office furniture to the Fifth Floor - Harbor Administrative Building (HAB) and Los Angeles Harbor Department Port Police Water Street building. (2) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 39555 for and on behalf of the Board; and (3) adopt Resolution No. __________.
H. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (b) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 regarding subject matter of mediation with Gambol Industries, Inc.
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
American Trucking Associations, Inc. v. City of Los Angeles, et al., United States District Court Case No. 08-04920-CAS, and United States Court of Appeals for the Ninth Circuit Case No. 08-56503.