Agenda - December 20, 2012
AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, DECEMBER 20, 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 REPORTS
F. PRESENTATION
Ports O' Call Status
G. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 5)
Debt & Treasury Management
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
SUMMARY: Given the favorable interest rates in the current market environment, the Alameda Corridor Transportation Authority (ACTA) is proposing to refund about $288 to $315 million of its 1999A Revenue Bonds, in order to take advantage of about $35.1 million in present value savings, based on the issuance of $288 million in refunding bonds. In connection with this financing, the City of Los Angeles Harbor Department (Harbor Department) is being asked to approve the attached proposed Resolution that authorizes the documentary support for the proposed refunding transaction. This proposed Resolution will authorize the execution of the Continuing Disclosure Certificate, the Letter of Representation, certain disclosures concerning Harbor Department finances and operations that will be contained in the Preliminary Official Statement, the Official Statement, and the Non-Assignment Agreement, if required, in connection with the issuance and sale by ACTA of its tax-exempt senior revenue refunding bonds, Series 2013A (2013 ACTA Bonds), for the purpose of refunding all or a portion of the Series 1999A Current Interest Bonds.
Recommendation: Board resolve to (1) authorize the execution and delivery of the Continuing Disclosure Certificate, the Letter of Representation, the Non-Assignment Agreement, if required, and other related documents and certificates in connection with the issuance and sale of the 2013 ACTA Bonds and authorize the City of Los Angeles Harbor Department's Executive Director or Chief Financial Officer, each of them acting individually, to comply with the terms and intent of the Board's Resolution, to assist ACTA in the issuance of the 2013 ACTA Bonds, to execute and deliver any documents or instruments related thereto and to take such other actions as may be deemed necessary or desirable in order to carry out the purposes of the Board's Resolution subject to: (i) approval of the issuance of the 2013 ACTA Bonds by ACTA; and (ii) the conditions set forth in the Resolution; (2) approve certain disclosure relating to the finances and operations of the City of Los Angeles Harbor Department to be contained in the Preliminary Official Statement and the Official Statement for the 2013 ACTA Bonds under the caption entitled "THE PORT OF LOS ANGELES" set forth in "APPENDIX B — DESCRIPTION AND AUDITED FINANCIAL STATEMENTS OF THE PORT OF LOS ANGELES" previously provided to the Harbor Department, with such changes thereto as the Executive Director or the Chief Financial Officer may require or approve; and (3) adopt Resolution No. ____________.
Office of the City Attorney
Transmittal 1
Transmittal 2
SUMMARY: The Cooperative Working Agreement between the Cities of Los Angeles and Long Beach - FMC Agreement No. 201170, Los Angeles Harbor Department Agreement No. 2476 ("Agreement") provides immunity from federal anti-trust laws, as provided for under the Shipping Act of 1984, so that the Los Angeles and Long Beach Harbor Departments (collectively "the Ports") may discuss and agree upon joint programs and strategies to improve the port-related transportation infrastructure and decrease port-related pollution emissions. The Agreement has been utilized in the past for the Ports to discuss issues of joint interest including implementation of the Clean Air Action Plan and the Clean Truck Program. The Agreement is currently being utilized for the purpose of discussing container chassis operations with various industry stakeholders. The Agreement is currently set to expire on December 31, 2012. The proposed revised Agreement modifies the termination date so that the Agreement will remain in effect until written notification to terminate is provided by one party to the other. The Agreement is also revised to change the filing agent from a law firm to the City of Los Angeles City Attorney's Office.
Recommendation: Board resolve to (1) approve the proposed revised Agreement between the City of Los Angeles and the City of Long Beach; (2) authorize the Executive Director to execute and Board Secretary to attest to said Agreement, for and on behalf of the Board; (3) authorize the Office of the City Attorney to file the revised Agreement with the Federal Maritime Commission; and (4) adopt the foregoing as Resolution No. ____________.
Transmittal 1
Transmittal 2
SUMMARY: The City of Los Angeles Office of the City Attorney is transmitting to the Board of Harbor Commissioners (Board) a First Amendment to Agreement No. 11-2997, a Settlement Agreement and Mutual Release of Claims (Settlement Agreement) with SA Recycling, LLC (SA), the tenant of the City of Los Angeles Harbor Department (Harbor Department) under Permit No. 750. If approved, the First Amendment extends the previous settlement to cover the time period just prior to the execution of the original Settlement Agreement under the same terms.
Recommendation: Board resolve to (1) consider the First Amendment to Agreement No. 11-2997, and, if approved: (2) authorize the Executive Director to execute and the Board Secretary to attest to the Settlement Agreement and Mutual Release of Claims; (3) further approve and authorize up to $84,000 in disputed wharfage invoiced from June 1, 2011 through July 20, 2011 (including late charges) to be written off in accordance with the Harbor Department's financial policies; and (4) adopt the foregoing as Resolution No. ____________.
Operations
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) Space Needs Action Plan (SNAP) was approved by the Board of Harbor Commissioners (Board) on July 7, 2011, as part of the Capital Improvements Program. Since then, seven of the 12 project components have been completed, of which, several were completed under budget, and one component was funded by the Construction & Maintenance Division. The remaining scope of work is projected to be completed under budget, creating a project savings of approximately $1 million.
In Spring 2012, the Port Police Division (Port Police) relocated to the new Port of Los Angeles Police Headquarters, leaving areas on the first and second floors of the Harbor Department Administration Building (HAB) vacant. Before other HAB employees can move into the spaces previously occupied by the Port Police, renovations need to be made to accommodate the functions of the intended Divisions. It is proposed that the SNAP scope of work be changed to include these renovations, the cost, of which, will be offset by the project savings identified above.
Recommendation: Board resolve to (1) approve the Space Needs Action Plan revised scope of work; and (2) adopt Resolution No. ___________.
Planning & Economic Development
Transmittal 1
Transmittal 2
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) has requested that the Phillips 66 Company (Phillips 66) remove and abandon an inactive underground pipeline located within the Downtown Harbor Landside Project area. Removal of the pipeline will allow for landscaping improvements associated with the Downtown Harbor Landside Project. Staff is recommending the Board of Harbor Commissioners (Board) approve Coastal Development Permit (CDP) No. 12-14, a Level I, non-appealable permit.
Recommendation: Board resolve to (1) 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; (2) authorize the Executive Director to approve the issuance of a Level I, non-appealable Coastal Development Permit No. 12-14; consistent with the project description listed on Application for Discretionary Project No. 121107-143; and (3) adopt Resolution No. ____________.
REGULAR ITEMS (6 - 9)
Business & Trade Development
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: 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. When containers are moved from the Port of Long Beach (POLB) to the Port of Los Angeles (POLA) and loaded to the on-dock rail, the container cargo full wharfage rate is assessed. On June 16, 2011, the Board of Harbor Commissioners (Board) approved an amendment to the POLA Tariff No. 4, Items 520 and 550-033, exempting the assessment of wharfage on Transferred Merchandise for one year through June 30, 2012. Since the wharfage exemption expired, full wharfage rates are now charged, as outline by POLA
Tariff No. 4, at $193.20, $388.50, and $499.80 per 20', 40' and 45' container respectfully, unless the container cargo weight and measurement is provided. However, there are various leases at the POLA which have a TEU sliding scale rate that differs from this rate. Based on Fiscal Year (FY) 2011-2012 revenue data, container terminal customers at the POLA that operate under a permit paid an average wharfage rate of $68.00 per container. Staff is recommending the Board approve an amendment to POLA Tariff No. 4, Items 520 and 550-033 setting the Transferred Merchandise rate at a level comparable to the average wharfage rate of $68.00 per container, effective retroactively to July 1, 2012 for a maximum of 500 containers per week, per terminal. If the Board does not approve this amendment, the full rate as per POLA Tariff No. 4 would remain in effect.
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-Wharfage"; (3) direct the Board Secretary to transmit to the City Council for approval of 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.
Construction
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: This contract is a part of the phased development of the West Basin China Shipping Container Terminal. Phase I, completed in December 2003, included construction of backland and wharf. Phase IIA, completed in December 2010, included additional backland and wharf. Phase IIIA, currently under construction with an anticipated completion date of December 2013, includes additional backland and wharf. This proposed contract consists of Phases IIB and IIIB, which includes the remaining backland and has a projected completion date of December 2013. Two remaining buildings are scheduled to start construction under another contract in 2014 and will be completed by early 2015. The lowest responsive and responsible bidder is Sully-Miller Contracting Co. (Sully-Miller), Brea, California. The contract amount, plus a 10% contingency is $23,055,725. The contract duration is 365 calendar days.
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) award the above mentioned contract for Item Nos. 1 through 25 of the proposal schedule to Sully-Miller Contracting Co. in the amount of $20,959,750; that a 10% contingency, not included in the original contract amount, be applied for a total authorization of $23,055,725; and authorize payment from the City of Los Angeles Harbor Department Construction Account. The contract time for performance of the work will be 365 calendar days from the Notice to Proceed; (3) in accordance with City Charter 655 (g), delegate and authorize the Executive Director to adjust final bid quantities and accept the construction contract upon its completion; (4) authorize the Executive Director to execute, and the Board Secretary to attest to, this contract for and on behalf of the Board; and (5) adopt Resolution No. ____________.
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: This contract is for construction of the LA Waterfront Downtown Harbor Landside Improvements, the second phase of the Downtown Harbor project which contains surface improvements, including a town square for public gatherings, an outlook pier, and waterfront access. The first phase, currently under construction with a completion date of February 2013, is the Downtown Harbor Water Cut, which will reconfigure the landscape and water's edge to create space for a public marina. The lowest responsive and responsible bidder is Sully-Miller Contracting Co. (Sully-Miller) located in Brea, California. The contract amount, plus a 15% contingency, is $22,647,330. The contract duration is 455 calendar days.
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) award the above mentioned contract for Item Nos. 1 through 36 of the proposal schedule to Sully-Miller Contracting Co. in the amount of $19,693,330; that a 15% contingency not included in the original contract amount be applied for a total authorization of $22,647,330; and authorize payment from the City of Los Angeles Harbor Department Construction Account. The contract time for performance of the work will be 455 calendar days from the Notice to Proceed; (3) in accordance with City Charter Section 655 (g), delegate and authorize the Executive Director to adjust final bid quantities and accept the construction contract upon its completion; (4) authorize the Executive Director to execute, and the Board Secretary to attest to, this contract for and on behalf of the Board; and (5) adopt Resolution No. ____________.
Real Estate
Transmittal 1
SUMMARY: Permit No. 809 between the City of Los Angeles Harbor Department (Harbor Department) and H.J. Baker & Bro., Inc. (HJB), a Delaware corporation, grants HJB use of Harbor Department land located in the Wilmington District for the operation and maintenance of a sulphur processing, storage, and maintenance facility, and incidental purposes. Permit No. 809 was for a term of five years, commencing August 3, 1998, and expired on August 2, 2003. Order No. 6625 granted holdover status on July 17, 2003, with HJB continuing its compensation to the Harbor Department at its current rate of $11,990 monthly for a total annual amount of $143,880. It is recommended that the Harbor Department enter into a ten-year successor permit with HJB. Compensation will be set at $327,636 annually (payable at $27,303 per month), based on the Harbor Department's required 10 percent annual rate of return on a surface land value of $25 per s.f. The proposed $25 per s.f. per year surface value is consistent with market value for land of similar size and condition in the Wilmington area.
Recommendation: Board resolve to (1) approve Permit No. 887 with H.J. Baker & Bro., Inc., with a commencement date of January 02, 2013 and an expiration date of January 01, 2023; (2) direct the Board Secretary to transmit Permit No. 887 with H.J. Baker & Bro., Inc. to the City Council for approval pursuant to Section 606 of the City Charter; (3) authorize the Executive Director to execute and the Board Secretary to attest to Permit No. 887 upon approval by City Council; and (4) adopt Order No. ____________.
F. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
City of Los Angeles v. San Pedro Boat Works, Inc., et al., United States District Court Case No. CV-02-7986
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
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
City of Los Angeles v. Kinder Morgan, Inc., et al., Los Angeles Superior Court Case No. NC041463
4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
Cheryl Morris v. City of Los Angeles, et al., United States District Court Case No. CV12-4911DMG (PJWx)
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to the Burlington Northern Santa Fe Railway proposed permit:
Property: Wilmington Classification Yard
City Negotiator: Geraldine Knatz, Ph.D.
Tenant Negotiator: Mary Nan Doran
Negotiating Parties: City and Burlington Northern Santa Fe
Railway
Under Negotiation: Price and Terms