Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
AGENDA OF THE REGULAR MEETING OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, APRIL 5, 2012 AT 8:30 A.M.
BOARD OF HARBOR COMMISSIONERS
President Cindy Miscikowski
Vice President David Arian
Commissioner Robin M. Kramer
Commissioner Douglas P. Krause
Commissioner 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
Report on Business Development trip to South America – Commissioner Arian
E. BOARD COMMITTEE REPORTS
F. PRESENTATIONS
Community Investment Report - Cynthia Ruiz, Deputy Executive Director of External Relations
USS Iowa Update – Carol Wianecki, Property Manager
G. APPROVAL OF THE MINUTES
Minutes for the Regular Meetings of November 17, 2011, February 2, 2012 and February 16, 2012 for approval.
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 7)
Debt and Treasury
1. Re: RESOLUTION NO. ____________ - APPROVAL OF A SEVEN-YEAR SURETY AGREEMENT AMONG THE ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY, THE CITY OF LOS ANGELES HARBOR DEPARTMENT ACTING BY AND THROUGH ITS BOARD OF HARBOR COMMISSIONERS, THE CITY OF LONG BEACH, ACTING BY AND THROUGH ITS BOARD OF HARBOR COMMISSIONERS, AND U.S. BANK NATIONAL ASSOCIATION
Transmittal 1
SUMMARY: Staff recommends the approval of a seven-year Surety Agreement among the Alameda Corridor Transportation Authority (ACTA), the City of Los Angeles Harbor Department (Harbor Department), acting by and through its Board of Harbor Commissioners (Board), the City of Long Beach, acting by and through its Board of Harbor Commissioners (Port of Long Beach) and U.S. Bank National Association (Trustee). Pursuant to the Surety Agreement, both the Harbor Department and the Port of Long Beach would act as a surety provider, provided that ACTA’s Governing Board has approved the loan documents and authorized the transaction. ACTA is currently in the final stages of obtaining a loan from the United States of America, represented by the Secretary of Transportation, acting through the Administrator of the Federal Railroad Administration (FRA) that will require the FRA to purchase from ACTA its Taxable Senior Lien Revenue Refunding Bonds, Series 2012 (Series 2012 Bonds).
As a precondition to the issuance of the Series 2012 Bonds by ACTA, ACTA needs to fund a debt service reserve fund for the Series 2012 Bonds. The FRA will not permit the debt service reserve fund to be funded from proceeds of the Series 2012 Bonds. The Harbor Department and the Port of Long Beach have agreed to enter into the Surety Agreement as the alternative solution to funding the debt service reserve requirement for the Series 2012 Bonds.
By acting as a surety provider, the Harbor Department along with the Port of Long Beach will serve as the funding source for ACTA’s debt service reserve requirement. By entering into the Surety Agreement, the two ports will facilitate the closure of the FRA loan and thereby reduce their future possible shortfall liabilities. This recommendation requires the approval of the Los Angeles City Council (City Council), since the surety Agreement involves a private institution, US Bank.
Recommendation: Board resolve to (1) approve the seven-year Surety Agreement that allows the Harbor Department to act as a surety provider to Alameda Corridor Transportation Authority (ACTA), subject to approval of the Federal Railroad Administration loan and approval by ACTA’s Governing Board; (2) authorize the Executive Director to execute and the Board Secretary to attest to the Surety Agreement; (3) adopt Resolution No. _________; and (4) direct the Board Secretary to forward the Resolution and the Surety Agreement to the City Council for approval in accordance with Charter Section 373 and Los Angeles Administrative Code Section 10.5 (a).
2. Re: RESOLUTION NO.____________ - PROPOSED UPDATES TO THE CITY OF LOS ANGELES HARBOR DEPARTMENT FINANCIAL POLICIES
Transmittal 1
Transmittal 2
SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) review and adopt the proposed updates to the City of Los Angeles Harbor Department’s (Harbor Department) Financial Policies. These policies, consisting of Fiscal (Budgetary, Revenues, and Expense Policies), Leasing, Capital Improvement Plan Funding, Financial Reserve, Risk Management, and Debt Management Policies, codify and reinforce the Harbor Department’s continuing practice of fiscal responsibility. The approval of the revised financial policies will comply with the Los Angeles City Council motion, Council File No. 09-0600-S159, in which the Harbor Department is requested to provide an annual reporting of its financial policies to the Budget and Finance Committee by April 1st of each year. Unless there are changes to the content of the financial policies, the proprietary departments do not have to submit their financial policies to the Budget and Finance Committee. Staff has determined that the proposed updates are not content changes to the Harbor Department’s Financial Policies. There are no substantive changes to five of the six policies. However, there is a change to the Financial Reserve Policy that sets targets rather than minimums for specific funds.
Recommendation: Board resolve to (1) approve and adopt the updates to the Harbor Department’s Financial Policies as outlined in this report for the following: Fiscal (Budgetary, Revenues, and Expense Policies), Leasing, Capital Improvement Plan Funding, Financial Reserve, Risk Management, and Debt Management Policies; and (2) adopt Resolution No. _________.
Environmental Management
3. Re: RESOLUTION NO. ____________ - APPROVAL OF THE CALIFORNIA LEAST TERN NESTING SITE INTERAGENCY MEMORANDUM OF AGREEMENT FOR ANNUAL NESTING SITE MONITORING PROGRAM
Transmittal 1
Transmittal 2
SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) approve the attached California Least Tern Nesting Site Memorandum of Agreement among the City of Los Angeles Harbor Department (Harbor Department), California Department of Fish and Game (CDFG), U.S. Fish and Wildlife Service (USFWS) and the U.S. Army Corps of Engineers (COE). This interagency Memorandum of Agreement (MOA) on the endangered California least tern is the latest in a sequence of agreements that have been in place since 1984. Over the years, these agreements have provided for successful protection, maintenance and relocation of the least tern’s 15-acre nesting area to Pier 400, while allowing continued Port of Los Angeles (Port) activities. The proposed agreement sets forth the responsibilities of the signatories towards protection of the least tern during its nesting season from April to September for a term of five (5) years. There is no direct cost associated with this MOA.
Recommendation: Board resolve to (1) approve the attached California Least Tern Nesting Site Memorandum of Agreement among the City of Los Angeles, California Department of Fish and Game, U.S. Fish and Wildlife Service and the U.S. Army Corps of Engineers for a period of five (5) years from 2012 to 2017; (2) authorize the Executive Director to execute and Board Secretary to attest to said interagency Memorandum of Agreement; and (3) adopt Resolution No. _________.
External Relations
4. Re: RESOLUTION NO. ____________ - FOR THE APPROVAL OF CHANGES TO THE MEMBERSHIP OF THE PORT OF LOS ANGELES COMMUNITY ADVISORY COMMITTEE
Transmittal 1
SUMMARY: As required by the Port of Los Angeles Community Advisory Committee (PCAC) By-laws, the Board of Harbor Commissioners (Board) is being asked to approve changes in the PCAC membership for the Council District (CD) 15.
Recommendation: Board resolve to (1) approve David Thornburg as the Council District 15 At-Large Voting Member; and (2) adopt Resolution No. _________.
Human Resources
5. Re: RESOLUTION NO. ____________ - APPROVAL OF COST OF LIVING INCREASE FOR THE EXECUTIVE DIRECTOR
Recommendation: Board resolve to adopt the Resolution approving the cost-of-living increase for the Executive Director Effective January 1, 2012 and January 1, 2013.
Risk Management
6. Re: RESOLUTION NO. ____________ - APPROVAL OF AN AGREEMENT WITH ALLIANT INSURANCE SERVICES TO PROVIDE INSURANCE BROKERAGE AND RISK MANAGEMENT SERVICES
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is recommending that the Board of Harbor Commissioners (Board) award a one-year contract, with two one-year renewal options, for insurance brokerage and risk management services to Alliant Insurance Services (Alliant) of Newport Beach, California. Under the proposed Agreement, Alliant will serve as the Harbor Department’s insurance broker, providing consultative insurance brokerage and risk management services to assist with the administration of the Harbor Department’s risk management program and procurement of commercial property and liability insurance. Approval of the proposed Agreement would authorize the Harbor Department to expend up to $14,950,000 over a three-year period that covers up to $350,000 (estimated at about $116,667 each year) for Alliant’s broker fees and up to $14,600,000 (estimated at about $4,866,667 each year) for insurance expenses.
Recommendation: Board resolve to (1) find that in accordance with City of Los Angeles Charter Section 1022, work under the subject Agreement can be performed more feasibly by an independent contractor than by City employees; (2) approve the Agreement with Alliant Insurance Services, Inc. to provide insurance brokerage and risk management services for a term of one-year with two one-year renewal options and authorize payments of up to $350,000 over the three-year period, estimated at $116,667 each year, for broker fees; (3) authorize payments of up to $14,600,000 over the three-year period, estimated at $4,866,667 each year, for insurance expenses; (4) authorize the Executive Director or a designee to execute the two one-year renewal options for and on behalf of the Board; (5) authorize the Executive Director to execute and the Board Secretary to attest this Agreement for and on behalf of the Board; and (6) adopt Resolution No. _________.
Construction and Maintenance
7. Re: RESOLUTION NO. ____________ - AWARD OF CONTRACT NO. 39632 TO THE JANKOVICH COMPANY FOR MARINE DELIVERED FUEL
Transmittal 1
Transmittal 2
SUMMARY: The Construction and Maintenance Division (C&M) requests approval of a one-year annual contract with two, one-year renewal options with The Jankovich Company of San Pedro, CA for marine delivered fuel to be used by City of Los Angeles Harbor Department (Harbor Department) vessels for an amount not to exceed $300,000 per year, including sales tax. Harbor Department vessels currently run on ultra low sulfur diesel fuel or gasoline and this Request for Bid (RFB) sought the lowest price to supply the fueling needs of the Harbor Department.
Recommendation: Board resolve to (1) approve Contract No. 39632 with The Jankovich Company for a term of one year beginning May 1, 2012 with two, one-year renewal options in an amount not to exceed $300,000 per year, or a total of $900,000, and authorize said expenditures; (2) authorize the Executive Director and Board Secretary to execute and attest to Contract No. 39632; and (3) adopt Resolution No. _________.
REGULAR ITEMS (8 - 10)
Contracts and Purchasing
8. Re: RESOLUTION NO. ____________ - LOCAL BUSINESS PREFERENCE PROGRAM
Transmittal 1
SUMMARY: On October 14, 2011, the City Council approved an Ordinance establishing a Local Business Preference Program (LBPP). Recognizing that the cost of doing business in the City of Los Angeles (City) is more than 10% higher than other cities nationally, the LBPP was designed so that local businesses get an equal opportunity to compete for City business. The LBPP provides County of Los Angeles-based bidders/proposers with an 8% preference. Although the LBPP does not apply to Proprietary Departments, the Ordinance strongly encourages Proprietary Departments to adopt a local preference program consistent with the LBPP. Staff is recommending that the Board of Harbor Commissioners (Board) adopt a local preference program, augmenting the City of Los Angeles Harbor Department’s (Harbor Department) efforts to increase local jobs and spending to benefit the businesses and residents surrounding the Port of Los Angeles. The State Lands Commission has no objections to the proposed program. The Board of Commissioners of the Los Angeles Department of Water and Power approved the LBPP in its entirety on November 1, 2011. It is anticipated that the Board of Commissioners for Los Angeles World Airports will consider a LBPP in April 2012.
Recommendation: Board resolve to (1) adopt a Local Business Preference Program substantially the same as that adopted City-wide, except that the Harbor Department’s program would include Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties; (2) authorize the Executive Director to implement the Local Business Preference Program; (3) authorize the Director of Contracts and Purchasing to create and/or modify administrative documents, consistent with the adoption of the program, to implement the Local Business Preference Program; (4) instruct staff to evaluate the Local Business Preference Program within one year to ensure that the Harbor Department is meeting the intent of the Local Business Preference Program, and to report back with a cost/benefit analysis; and (5) adopt Resolution No. _________.
Environmental Management
9. Re: RESOLUTION NO. ____________ - MITIGATED NEGATIVE DECLARATION FOR THE JOHN S. GIBSON BOULEVARD/ I-110 ACCESS RAMPS AND SR-47/I-110 CONNECTOR IMPROVEMENTS PROJECT (LAHD ADP NO. 081215-139; SCH NO. 2011071080)
Transmittal 1
Transmittal 2
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) and the State of California Department of Transportation (Caltrans) have prepared a joint Initial Study/Mitigated Negative Declaration (IS/MND) and Environmental Assessment/Finding of No Significant Impact (EA/FONSI) in accordance with the requirements of the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA) for the John S. Gibson Boulevard/I-110 Access Ramps and SR-47/I-110 Connector Improvements Project (Project).
The Project involves widening the SR 47/I-110 connector from one to two lanes, extending the additional lane on the northbound (NB) I-110 past the John S. Gibson Boulevard off-ramp, modifying the NB ramps at the I-110/John S. Gibson Boulevard interchange, and improving the intersection of John S. Gibson Boulevard and the NB I-110 ramps. The Project also includes improvements to an existing drainage system and widening of the Pacific Avenue Undercrossing and the Channel Street Overhead, as well as the construction of sound walls to abate existing and future traffic noise.
Staff recommends that the Board of Harbor Commissioners (Board) consider the IS/MND for the Project, along with the comments and responses to comments; make specific findings regarding the environmental impacts of the Project and mitigation measures to reduce or avoid such impacts; adopt a mitigation monitoring and reporting program; and approve the Project described in the IS/MND.
Recommendation: Board resolve to (1) consider, pursuant to CEQA Guidelines § 15096, the Initial Study/Mitigated Negative Declaration for the John S. Gibson Boulevard/I-110 Access Ramps and SR-47/I-110 Connector Improvements Project which (a) has been completed by Caltrans as the CEQA Lead Agency in accordance with CEQA, with the State CEQA Guidelines, and the Los Angeles City CEQA Guidelines; and (b) was presented to the Board for review and the Board reviewed and considered the information contained in the Initial Study/Mitigated Negative Declaration prior to approving the Project; (2) find that, based on the information contained in this report and the Initial Study/Mitigated Negative Declaration for the John S. Gibson Boulevard/I-110 Access Ramps and SR-47/I-110 Connector Improvements Project, and with incorporation of revisions to the Project and mitigation measures, that the John S. Gibson Boulevard/I-110 Access Ramps and SR-47/I-110 Connector Improvements Project would not have a significant effect on the environment pursuant to Public Resources Code § 21080 and State CEQA Guidelines § 15096; (3) find that all information added to the Initial Study/Mitigated Negative Declaration after the public review period, merely clarifies, amplifies, or makes insignificant modifications, and recirculation is not necessary; (4) adopt the Mitigation Monitoring and Reporting Plan as required by Public Resources Code § 21081.6 and State CEQA Guidelines § 15097. The Mitigation Monitoring and Reporting Plan 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 Harbor Department as responsible 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 Initial Study/Mitigated Negative Declaration, together with the comment letters received and the response to comments, approve the John S. Gibson Boulevard/I-110 Access Ramps and SR-47/I-110 Connector Improvements Project; (6) authorize the Environmental Management Division to file the Notice of Determination for the subject Project with the Los Angeles City and County Clerks; and (7) adopt Resolution No. _________.
Clean Truck Program
10. Re: RESOLUTION NO. ____________ - GRANT REOBLIGATION REQUEST TO APPROVE CONTRACT WITH BALQON CORPORATION TO UPGRADE SIX HARBOR DEPARTMENT-OWNED BALQON ELECTRIC YARD TRACTORS
Transmittal 1
Transmittal 2
SUMMARY: Staff requests approval of the Proposed Contract between the City of Los Angeles, Harbor Department (Harbor Department) and Balqon Corporation (Balqon) in the amount of $630,000 to upgrade six Harbor Department-owned Balqon E-20 model electric yard tractors from lead-acid to lithium-ion based batteries (Transmittal 1). Of that amount, $359,987 will be reimbursable from a grant that has been authorized for the Harbor Department from the United States Department of Energy’s (DOE) Energy Efficiency and Conservation Block Grant (EECBG) program. The funds were originally obligated to fund six hydrogen fuel cell retrofits at a total reimbursable cost of $622,000 (Transmittal 2). A progress payment of $262,013 was paid to the vendor, Vision Motor Corporation (“Vision”)., which was reimbursed by the DOE. However, the vendor was unable to complete the retrofit project by the grant deadline, leaving an available grant balance of $359,987. By spending $262,013 of its own money on the battery upgrades, the Harbor Department will effectively reinstate the original grant funding, fulfill its obligations to the DOE related to committed deliverables, and avoid any repayment obligations. It is anticipated that the proposed battery upgrade would more than triple the operating hours of a yard tractor on a single charge to make them more suitable for port operations. The total cost of the upgrades is $630,000 ($105,000 per truck). The Harbor Department has a credit of $1,159,601 with Balqon from authorized advances under Agreement No. 2664, which was unspent when the Harbor Department and Balqon agreed to suspend vehicle production. For this new contract, EECBG funds in the amount $359,987 will be reimbursed to the Harbor Department; however, no cash payments will be made to Balqon. Balqon would be compensated by reducing the amount Balqon owes to the Harbor Department by $630,000. Staff is waiting for full approval from the DOE of the proposed project and its payment structure. If DOE does not accept the proposal, the Harbor Department will not be eligible for reimbursement.
Recommendation: Board resolve to (1) approve the Proposed Contract with Balqon Corporation to upgrade six Harbor Department-owned electric tractors with lithium-ion batteries and authorize payment through reduction of Balqon’s credit owed to the Harbor Department under Agreement No. 2664; (2) authorize the Executive Director to execute the Proposed Contract for and on behalf of the Board; and (3) adopt Resolution No. _________.
I. CLOSED SESSION
1. 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. 10-56465, and U.S. Supreme Court Case No. 11-798
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: one case.