REGULAR MEETING AGENDA
THURSDAY, FEBRUARY 16, 2017 AT 8:30 A.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
OPEN SESSION
A. Roll Call
B. Executive Director Remarks
Retirement Resolutions: Diane Boskovich & Linda Vigil
C. Comments from the Public on Non-Agenda Items
D. Report from the Neighborhood Council Representatives
E. Reports of the Commissioners
F. Board Committee Reports
G. Approval of the Minutes
Regular Meeting of February 2, 2017
H. Presentation
1. Recreational Marinas Overview
2. Draft Clean Air Action Plan 2017 Update
I. Level I Coastal Development Permit Report
J. Board Reports of the Executive Director
Consent Items (1 - 7)
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Quitclaim for Temporary Construction Easements (TCE). The City of Los Angeles Harbor Department (Harbor Department), in a joint project with the California Department of Transportation (Caltrans), constructed soundwalls along the Interstate 110 (I-110) and State Route 47 (SR-47) intersection in San Pedro. The soundwalls were necessary to reduce the sound level of freeway-generated noise.The project required TCEs to allow for construction of the soundwalls. In 2013, the Board of Harbor Commissioners approved the execution of TCEs, which were acquired from various property owners and recorded with the Los Angeles County Registrar/Recorder’s Office. Construction of the soundwalls has since been completed and the TCEs are no longer necessary. It is now necessary to execute and record the proposed quitclaim of the TCEs to relinquish the Harbor Department's temporary easement rights.
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) and 2(i) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Quitclaim of Temporary Construction Easements; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Quitclaim of Temporary Construction Easements; and (4) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve the First Amendment to Agreement No. 13-3195 to allow the Los Angeles Maritime Institute (LAMI) to provide sailing days to the youth of Wilmington on their existing vessels and to extend the term of the Agreement to August 2018 (an additional 17 months). In November 2013, the City of Los Angeles Harbor Department (Harbor Department) entered into Agreement No. 13-3195 with LAMI to fund the restoration of their tall ship, Swift of Ipswich (Swift), and to provide 40 days of sailing for Wilmington youth on the Swift (Project). LAMI is committed to completing the restoration of the Swift, but the restoration is taking more time than expected and the vessel will not be returning to service in the near future. As the current Agreement is written, LAMI is required to conduct sailing trips on the Swift. As an alternative, LAMI proposes to fulfill the 40 days of youth sailing on their existing vessels, the Exy Johnson and the Irving Johnson. Additionally, since Agreement No. 13-3195 will expire in March 2017, LAMI is requesting an extension of 17 months, which will provide the necessary time to complete the 40 days of sailing for Wilmington youth. No additional funding for this project is requested for this Amendment.
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 First Amendment to Agreement No. 13-3195 with the Los Angeles Maritime Institute; (3) direct the Board Secretary to transmit proposed First Amendment to the Los Angeles City Council for approval pursuant to Section 373 of the Charter of the City of Los Angeles and Section 10.5(a) of the Los Angeles Administrative Code; (4) authorize the Executive Director to execute and the Board Secretary to attest to said First Amendment; and (5) 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 occupational medical services for a three-year period at a total not-to-exceed amount of $165,000. The services will consist primarily of pre-employment and annual medical examinations, and treatment of initial workplace injuries. Additional services will include providing first aid treatment and ensuring medical compliance with state and federal medical requirements for occupational licenses. Western Medical Group is located in Torrance, California. The Harbor Department is responsible for payment of expenses incurred under this Agreement.
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) find that in accordance with 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; (3) approve the Agreement with Western Medical Group for a total not-to-exceed amount of $165,000 and a term of three years; (4) authorize the Executive Director to execute and Board Secretary to attest to said Agreement; and (5) adopt Resolution No.____________.
Office of the City Attorney
Summary: The Office of the City Attorney requests the Board of Harbor Commissioners (Board) to approve two Second Amendments (Amendments) to Executive Director Agreement No. E-6773 with DigiStream Investigations (DigiStream) and Agreement No. E-6774 with G4S Compliance and Investigations (G4S). The Amendments for both Agreements (No. E-6773 and No.E-6774) extends the term of the Agreements by one year. The term extensions are necessary due to multiple lengthy ongoing Workers' Compensation investigations. The City of Los Angeles Harbor Department (Harbor Department) is financially responsible for payment of expenses under the proposed Amendments.
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 the Second Amendment to Agreement No. E-6773 with DigiStream Investigations, extending the two-year term to a total of three years with no additional compensation; (3) approve the Second Amendment to Agreement No. E-6774 with G4S Investigations, extending the two-year term to a total of three years with no additional compensation; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment to Agreement E-6773 and the Second Amendment to Agreement No. E-6774; and (5) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the annual budgets for Fiscal Years (FY) 2014/2015, 2015/2016 and 2016/2017 under Agreement No. 13-3125 (Agreement) between Westrec Marina Management, Inc. (Westrec) and the City of Los Angeles Harbor Department (Harbor Department). The Agreement provides for the operation, management, and maintenance of the Cabrillo Way Marina (CWM) and its structures/facilities located in San Pedro on behalf of the Harbor Department. The Agreement has a five-year term (July 1, 2013 through June 30, 2018), with two five-year option periods to extend the term. Exhibit B: Scope of Work of the Agreement requires the Operator (Westrec), with input from the Harbor Department, to prepare an annual budget for operation of the marina for approval by the Harbor Department. The first proposed annual budget for FY 2013/2014 was approved at the Agreement’s inception and was provided as an estimate of the proposed revenues and expenses. The initial expense and revenue budgets were produced as part of a competitive Request for Proposal (RFP) process in which Westrec was the successful proposer.
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 Westrec Marina Management, Inc. annual budget for Fiscal Years 2014/2015, 2015/2016, and 2016/2017 under Agreement No. 13-3125; and (3) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests approval of the First Amendment to Agreement No. 13-3125 between Westrec Marina Management, Inc. (Westrec) and the City of Los Angeles Harbor Department (Harbor Department). Agreement No. 13-3125 provides for the operation, management, and maintenance of the Cabrillo Way Marina (CWM), its structures, and facilities located in San Pedro, on behalf of the Harbor Department. The First Amendment to Agreement No. 13-3125 will revise Exhibit B, Scope of Work (SOW). The revisions include reference to the installation of a third and fourth crane for boat hoisting operations. Also included are modifications to the number of dry boat storage stall spaces from 400 to 325; changes to the berthing slip count from 697 to 692; and additional maintenance requirements to be performed by Westrec. Additionally, reference to coordinating or reporting on some items to the Harbor Department's Construction and Maintenance (C&M) Division will be deleted. Installation of the third crane shall take place upon approval of Westrec’s 2016/2017 annual budget, which will be considered under a separate Board action. A fourth crane may be installed, if needed, in the future without further amendment but conditioned on budget approval by the Board of Harbor Commissioners. Amending the SOW provides an updated and comprehensive outline of the maintenance responsibilities to be conducted by Westrec.
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(i) and Article III Classes 1(1) and 1(14) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the First Amendment to Agreement No. 13-3125 with Westrec Marina Management, Inc.; (3) direct the Board Secretary to transmit the First Amendment to City Council for approval pursuant to Charter Section 606; (4) authorize the Executive Director to Execute and the Board Secretary to attest to the First Amendment upon approval by City Council; and (5) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval to authorize the Executive Director to vote in favor of the renewed and expanded San Pedro Historic Waterfront Business Improvement District (District). Renewal and expansion requires a majority vote in favor of the District, weighted by the amount assessed to each property owners. If approved, the District would be renewed for ten years and include downtown San Pedro and San Pedro Waterfront areas from the Vincent Thomas Bridge to the Breakwater. The City of Los Angeles Harbor Department (Harbor Department) assessment for the proposed District renewal and expansion in year one is $389,863 with annual Consumer Price Index increases up to 3 percent per year. The proposed year one assessment would be an increase of $158,760 from the existing District's Fiscal Year (FY) 16/17 assessment of $231,103.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act under Article II Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) authorize the Executive Director to sign the Property Owner Ballot and transmit to the City Clerk's Office to support the renewal and expansion of the District upon the Los Angeles City Council’s finding of majority support for the renewal of the District, and following the City Council's authorization of a District election; (3) authorize the expenditure of funds for the City of Los Angeles Harbor Department's 2018 assessment obligation for the District with annual adjustments not to exceed three percent per year for a ten-year term; and (4) adopt Resolution No.____________.
Regular Items (8 - 12)
Cargo & Industrial Real Estate
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of the Tenth Amendment to Permit No. 733 (Permit) with Eagle Marine Services, LTD. (EMS). The Permit premises consist of 261.03 acres at Pier 300. In addition, EMS occupies 30.28 acres and 0.69 acres granted under a Space Assignment and Revocable Permits, respectively. The Tenth Amendment will (a) incorporate the Space Assignment area into the Permit at a fixed annual rent plus annual Consumer Price Index (CPI) based adjustments, (b) reset compensation for the five-year period beginning January 1, 2017 through December 31, 2021, (c) increase the Minimum Annual Guarantee (MAG) per acre, (d) grant EMS two separate rights to request that City furnish real property for developing 41 existing acres adjacent to the Premises until December 31, 2025, as well as non existing additional future acreage to develop up to 35 acres after the 41 acres have been first requested, (e) incorporate the application of a General Rate Increase (GRI) to the Tariff No. 4, if any, at any time after January 1, 2020, and (f) release City of Los Angeles Harbor Department (Harbor Department) from the claim filed by EMS against the Harbor Department for the development of additional premises.
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(i) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) find that, while the Rate of Return does not meet the current Leasing Policy Section VIII Rates, Fees and Charges, by approving this Amendment the Rate of Return is expected to increase from its current level; (3) approve the Tenth 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; (4) direct the Board Secretary to transmit the Tenth Amendment to Permit No. 733 to City Council for approval pursuant to Charter Section 606; (5) authorize the Executive Director to execute and the Board Secretary to attest to the Tenth Amendment upon approval by City Council; and (6) adopt Resolution No.____________.
Cargo & Industrial Real Estate
9. RESOLUTION NO.____________ - CONFIRMATION OF SALE BY AUCTION OF SURPLUS LAND
Summary: Staff requests confirmation of sale by auction by oral bids of surplus real property located in the Harbor District on John S. Gibson Boulevard, and owned by the City of Los Angeles Harbor Department (Harbor Department), to the winning bidder pursuant to Ordinance No. 184663, adopted by the Los Angeles City Council on December 13, 2016, which, among other things, ordered the sale of the property by oral bids pursuant to Section 385 of the City Charter and in accordance with the provisions of Section 7.24 of the Los Angeles Administrative Code, and authorized and empowered this Board of Harbor Commissioners to confirm the sale to the highest responsible bidder in an amount not less than the minimum bid of $1,218,000. The surplus real property auction was held on February 8, 2017. Jenna Development, LLC, a California Limited Liability Company (Jenna Development), was the highest responsible bidder among the four registered bidders with a bid in the amount of $3,200,000.
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 Class 12 of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) confirm the sale to Jenna Development, LLC, a California Limited Liability Company for the amount of $3,200,000 pursuant to Ordinance No. 184663; and (3) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of a Revocable Permit License for PBF Energy Western Region LLC dba Torrance Pipeline (PBF) for use and occupancy of 300 square feet of premises located at 655 S. Fries Avenue, approximately 914 feet south of Pier A Street and Water Street in Wilmington. The Revocable Permit License is required to allow PBF to access and repair a pipeline, which is regulated by the California State Fire Marshall. The repair is required to be complete within the first quarter of 2017. Staff has been working with PBF since September 2016 to provide access to the pipeline, which also requires additional access rights to be coordinated with Pasha Stevedoring Terminals (Pasha), an adjacent City of Los Angeles Harbor Department (Harbor Department) tenant. PBF was originally prepared to perform the work under the former Temporary Entry and Use Permit authorization. However, approval of the new Temporary Entry and Use Permit (TEUP) policy on January 12, 2017, limited the application of TEUPs for special event applications only. Currently, the proper real estate entitlement to provide non-possessory rights to perform this type of access, maintenance, and repair work is a Revocable Permit License which requires approval by the Board of Harbor Commissioners as requested in this staff report.
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 2(5) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Revocable Permit License for PBF Energy Western Region LLC dba Torrance Pipeline; (3) authorize the Executive Director to execute the Revocable Permit License; and (4) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Order resetting compensation for the five-year period effective May 21, 2016 and adjusted annually thereafter through May 20, 2021 to reflect increases in the Consumer Price Index (CPI) for Concession Agreement No. 517 (CA 517) with Cabrillo Beach Yacht Club (CBYC). CA 517 is for the operation and maintenance of a yacht club center with small vessel dry storage and is located in San Pedro. The proposed Order recommends fixed minimum rent to be reset at $19,215 per month, with percentage rents for income from various categories remaining the same.
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 Order resetting compensation with Cabrillo Beach Yacht Club for the period of May 21, 2016 through May 20, 2021; (3) authorize the Board Secretary to attest to the Order resetting compensation; and (4) adopt Resolution No.____________ and Order No.____________.
Executive Office
Summary: Staff requests the Board of Harbor Commissioners adopt a Resolution approving and providing mutual agreement to the terms of an amendment to the Alameda Corridor Transportation Authority's (ACTA) Maintenance Agreement (Rail Corridor and Non-Rail Components) with Balfour Beatty Infrastructure, Inc. dated April 15, 2007 (Agreement). The Agreement expires on April 14, 2017. The terms of the amendment consist of a six-month extension to the Agreement (Amendment).
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 and provide mutual agreement to the terms of the Amendment which consists of an extension to the term of the ACTA Maintenance Agreement for up to six months; (3) direct the Executive Director to transmit this Resolution to ACTA for further action pursuant to the Amended and Restated Alameda Corridor Use and Operating Agreement; and (4) adopt Resolution No. ____________.
CLOSED SESSION
K. Closed Session Items
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
BNSF Railway Company, et al. v. California State Board of Equalization, et al., United States District Court Case No. 3:16-cv-04311-RS
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Rabab Diab, et al. v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BC620043
3. CONFERENCE WITH LEGAL COUNSEL - INITIATE LITIGATION
(Subdivision (d)(4) of Government Code Section 54956.9)
Initiation of litigation pursuant to subdivision (d)(4) of Section 54956.9:
two cases
4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 904 with AltaSea at the Port of Los Angeles:
Property: City Dock 1, San Pedro, California
City Negotiator: Michael Galvin
Tenant Negotiator: Jenny Krusoe
Negotiating Parties: City and AltaSea at the Port of Los Angeles
Under Negotiation: Price and Terms
L. Adjournment