CONSENT ITEMS (1 - 4)

Real Estate
 

1. Re: RESOLUTION NO. - SETTLEMENT AGREEMENT AND FIRST AMENDMENT TO PERMIT NO. 882 WITH MILLENNIUM MARITIME, INC.

Transmittal 1
 

SUMMARY: The Board of Harbor Commissioners (Board) granted Permit No. 882 (Permit) to Millennium Maritime, Inc. (MMI) for premises at Berth 301 (Premises) effective November 1, 2011. The Permit allows for the construction, operation, and maintenance of an office and maintenance facility for their tug and barge operation. The Permit was issued for a five-year term, with two five-year options. The attached Settlement Agreement and Release (Settlement Agreement), as well as the proposed First Amendment to the Permit, addresses the need to correct a mutual oversight by the City of Los Angeles Harbor Department (Harbor Department) and MMI on the compensation and Tariff No. 4 charges by deleting most of MMI’s submerged land (water) premises and settling certain outstanding invoices in connection with this oversight. As a result, $359,500 of the total
$413,229 in outstanding dockage charges due will be reversed and MMI is responsible to pay the remaining $53,729.
Recommendation: Board resolve to (1) approve the proposed Settlement Agreement and Release with Millennium Maritime, Inc., and its related entities, Westoil Marine Services, Inc., and Olympic Tug and Barge, Inc.; (2) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Settlement Agreement and Release; (3) approve the proposed First Amendment to Permit No. 882 with Millennium Maritime, Inc.; (4) direct the Board Secretary to transmit the First Amendment to Permit No. 882 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 First Amendment to Permit No.
882 upon approval by City Council; and (6) adopt Resolution No. _.

Commission Office
 

 

Recommendation: Board resolve to adopt subject Resolution No. _.

Finance
 

3. Re: RESOLUTION NO. - ADOPT THE UPDATED FINANCIAL POLICIES OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT

Transmittal 1
Transmittal 2
Transmittal 3
 

SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) review and approve the proposed updated Financial Policies of the City of Los Angeles Harbor Department (Harbor Department). These policies, consisting of Fiscal (Budgetary, Revenues, and Expense Policies), Leasing, Capital Improvement Plan Funding, Financial Reserve, Risk Management, Disclosure, and Debt Management Policies, codify and reinforce the Harbor Department’s continuing practice of fiscal responsibility. This set of polices will promote consistent and efficient financial procedures and operational efficiencies, and assist in compliance with applicable laws, regulations, and accounting and reporting standards. There are no substantive changes to the policies other than the deletion of the section related to using bond insurance to enhance the credit risks of a bond issue, and the insertion under the Debt Management Policy section, an article for Post-Issuance Tax Compliance to follow new regulations for tax-exempt bond issuers. Other alterations relate primarily to formatting and style. The approval of the financial policies complies with the Los Angeles City Council motion, Council File No. 04-1822-S3, in which the Harbor Department is urged to implement certain financial policies that more closely align with those of the City of Los Angeles’ Financial Policies as adopted by the City Council and approved by the Mayor. Adherence to the Financial Policies is the responsibility of the Harbor Department. The approval of these policies does not cause the Harbor Department to incur any financial expenditures.
Recommendation: Board resolve to (1) approve and adopt 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, Disclosure, and Debt Management Policies; and (2) adopt Resolution No. .

Office of the City Attorney
 

4. Re: RESOLUTION NO. - APPROVAL OF REVISED FORMS FOR SPACE ASSIGNMENTS, BERTH ASSIGNMENTS, AND SUBSTITUTE PREMISES

Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Transmittal 7
 

SUMMARY: The Office of the City Attorney has prepared revised standard forms for space assignments, berth assignments, and substitute premises granted to assignees for the temporary use of land and water areas within the Harbor District. The Board of Harbor Commissioners’ (Board) approval of revised forms is necessary because the forms the Wharfingers currently use to document such entitlements are outdated and inconsistent with certain provisions of Tariff No. 4 and the current practices of the City of Los Angeles Harbor Department (Harbor Department). The proposed action will not result in any new financial responsibility on behalf of the Harbor Department or any other party executing the proposed forms.

Recommendation: Board resolve to (1) approve the standard space assignment form entitled NONEXCLUSIVE SPACE ASSIGNMENT APPLICATION AND AGREEMENT (WITHIN ASSIGNEE’S EXISTING PREMISES); (2) approve the standard space assignment form entitled NONEXCLUSIVE SPACE ASSIGNMENT APPLICATION AND AGREEMENT (OUTSIDE ASSIGNEE’S EXISTING PREMISES); (3) approve the standard space assignment form entitled NONEXCLUSIVE SPACE ASSIGNMENT APPLICATION AND AGREEMENT (PORT USER NOT CURRENLTY ASSIGNEE); (4) approve the standard space assignment form entitled NONEXCLUSIVE SPACE ASSIGNMENT APPLICATION FOR RENEWAL; (5) authorize the Executive Director, or designee, to grant space assignments on the standard space assignment forms approved by the Board, or substantially similar forms, as allowed under Item No. 800 of Tariff No. 4; (6) approve the standard berth assignment form entitled NONEXCLUSIVE BERTH ASSIGNMENT APPLICATION AND AGREEMENT; (7) approve the standard berth assignment form entitled SUPPLEMENTAL ATTACHMENT TO NONEXCLUSIVE BERTH ASSIGNMENT APPLICATION AND AGREEMENT; (8) authorize the Executive Director, or designee, to grant berth assignments on the standard berth assignment forms approved by the Board, or substantially similar forms, as allowed under Item No. 1010 of Tariff No. 4; (9) approve the standard substitute premises form entitled SUBSTITUTE PREMISES APPLICATION AND AGREEMENT; (10) authorize the Executive Director, or designee, to grant substitute premises on the standard substitute premises form approved by the Board, or a substantially similar form, as allowed under Item No. 1035 of Tariff No. 4; and (11) adopt Resolution No. _____________.

Environmental Management
 

5. Re: RESOLUTION NO. - FINAL ENVIRONMENTAL IMPACT REPORT FOR THE BERTHS 212-224 YUSEN TERMINALS, INC. [YTI] CONTAINER TERMINAL IMPROVEMENTS PROJECT (APP NO. 130204-020; SCH NO. 2013041017)

Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
 

SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board)
certify the Final Environmental Impact Report (EIR) for the Berths 212-224 [YTI] Container Terminal Improvements Project (proposed Project) in accordance with the California Environmental Quality Act (CEQA) and approve the proposed Project. The proposed Project would improve marine shipping and commerce at the existing Yusen Terminals, Inc. (YTI) Terminal located at Berths 212–224 on Terminal Island. The proposed Project involves improvement of an existing container terminal to accommodate the projected fleet mix of larger container vessels (up to 13,000 twenty-foot equivalent units (TEUs)) that are anticipated to call at the YTI Terminal through 2026. The proposed Project consists of deepening two existing berths (Berths 217–220, which is currently not in operation, and Berths 214–216, which is currently in operation), which would add an additional operating berth to the YTI Terminal, extending the 100-foot gauge crane rail to Berths 217–220, adding a single operational rail track to the Terminal Island Container Transfer Facility (TICTF) on-dock rail, modifying and replacing cranes, and constructing backland improvements. The proposed Project would increase the capacity of the YTI Terminal from 1,692,000 TEUs annually to
1,913,000 TEUs annually. Improvements at the other operating berth (Berths 212-
213) would be limited to backlands repairs and crane modifications. In this action, the Board will need to consider and certify the Final EIR, make specific Findings of Fact (FOF) regarding the significant environmental impacts of the proposed Project and mitigation measures to reduce or avoid such impacts, adopt a Statement of Overriding Considerations (SOC), and adopt a Mitigation Monitoring and Reporting Program (MMRP) to track mitigation. With the application of mitigation measures and lease measures, significant and unavoidable impacts from the proposed Project remain related to air quality and meteorology, including operational and marina-based residential health risk, biological resources, greenhouse gas emissions, and cumulative impacts. Aside from mitigation and lease measures that are the responsibility of the tenant as outlined in the MMRP (Transmittal 3), the proposed Project is the financial responsibility of the Harbor Department.

Construction
 

6. Re: RESOLUTION NO. - CHANGE ORDER NO. 5 – CAR & TRUCK WASH DOWN AREA AND RAILROAD TRACK PAN DRAINAGE SYSTEM CONTRACTOR: THE JOINT VENTURE OF HERZOG CONTRACTING CORP. AND HERZOG TECHNOLOGIES, INC. (HCC/HTI) BERTH 200 RAIL YARD TRACK CONNECTIONS PROJECT SPECIFICATION NO. 2745 – CONTRACT NO. 2291

Transmittal 1
Transmittal 2
Transmittal 3
 

SUMMARY: Change Order No. 5 to Contract No. 2291 Berth 200 Rail Yard Track Connections Project (Project), in the amount of $1,400,000 and a 120-calendar day time extension, authorizes The Joint Venture of Herzog Contracting Corp. and Herzog Technologies, Inc. (HCC/HTI) to furnish and install a car and truck wash down area and railroad track pan drainage system to comply with National Pollutant Discharge Elimination System (NPDES) environmental wastewater discharge requirements for the Project. Contract No. 2291 was approved by the Board of Harbor Commissioners (Board) on July 25, 2013, in the amount of
$20,141,303, including a 10% contingency in the amount of $1,831,028. To date,
$406,250 of this contingency amount has been expended. Therefore, there is adequate remaining contingency funding for this $1,400,000 Change Order, which is the financial obligation of the City of Los Angeles Harbor Department (Harbor Department). This Project is partially State-funded under the Proposition 1B, State Trade Corridor Improvements Fund (TCIF) through the State of California Department of Transportation, in the amount of $10,512,000. This change order is eligible for 50% reimbursement under this TCIF grant.
Recommendation: Board resolve to (1) approve and authorize the Executive Director to execute Change Order No. 5 for a not-to-exceed amount of $1,400,000 and a 120-calendar day time extension; and (2) adopt Resolution No. .

 

I. CLOSED SESSION

1. 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

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8)

Provide instructions to its real estate negotiators with respect to a proposed interim successor revocable permit:
Property: Berths 80-83, San Pedro, California
City Negotiator: Rica Viola
Tenant Negotiators: John Tallichet, Dennis Stahl Negotiating Parties: City and Ports O’Call Restaurant Corp. 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 a proposed interim successor revocable permit:
Property: Berth 79, San Pedro, California
City Negotiator: Rica Viola
Tenant Negotiators: Bobby Nizich, Nino Rosini Negotiating Parties: City and Nizich and Rosini Under Negotiation: Price and Terms

4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8)

Provide instructions to its real estate negotiators with respect to a proposed interim successor revocable permit:
Property: Berth 79, San Pedro, California
City Negotiator: Rica Viola
Tenant Negotiator: Tommy Amalfitano
Negotiating Parties: City and San Pedro Fish Markets
Under Negotiation: Price and Terms

5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8)

Provide instructions to its real estate negotiators with respect to a proposed interim successor revocable permit:
Property: Berths 76-79, San Pedro, California
City Negotiator: Rica Viola
Tenant Negotiator: Jayme Wilson
Negotiating Parties: City and San Pedro Waterfront, LLC Under Negotiation: Price and Terms
6. 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:
eight cases.