May 23, 2017
NOTICE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS MEETING
SUBJECT: TIME CHANGE: THE LOS ANGELES BOARD OF HARBOR
COMMISSIONERS MEETING - THURSDAY, JUNE 1, 2017
The Los Angeles Board of Harbor Commissioners Regular Meeting on Thursday,
June 1, 2017 at 8:30am has been rescheduled to 1:30pm on the same date.
The Special Board Meeting will be held in the Board Hearing Room at the Port of
Los Angeles' Harbor Administration Building at 425. S. Palos Veredes Street,
2nd Floor, San Pedro, CA 90731.
SPECIAL MEETING AGENDA
THURSDAY, JUNE 1, 2017 AT 1:30 P.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
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 May 18, 2017
H. Presentation
I. Level I Coastal Development Permit Report
The Executive Director has approved one Level I CDP:
CDP No. 17-06 Port of Los Angeles - Site improvements to allow placement of bike-share equipment
J. Board Reports of the Executive Director
Consent Items (1 - 4)
Waterfront & Commercial Real Estate
1. RESOLUTION NO.____________ - RESETTING COMPENSATION UNDER PERMIT NO. 520 WITH LA SKY HARBOR, LLC
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the Order resetting compensation for Permit No. 520 (Permit) with LA Sky Harbor, LLC (LASH). The Permit grants LASH use of approximately 7.52 acres of City of Los Angeles Harbor Department (Harbor Department) land at 2800 Via Cabrillo Marina, San Pedro, California, for the operation of a hotel and incidental purposes. The hotel is currently licensed as the Doubletree by Hilton Hotel San Pedro – Port of Los Angeles (Doubletree). The proposed Order resets compensation for the five-year period effective January 24, 2017, with annual consumer Price Index (CPI) adjustments thereafter through January 23, 2022. Under this Order, the annual fixed minimum rent will increase 25 percent from $170,724 to $213,240, with percentage rents for income from various categories remaining the same. The annual fixed minimum rent adjustment will be retroactive to January 24, 2017, and is the financial responsibility of LASH.
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 under Permit No. 520 with LA Sky Harbor, LLC for the Period January 24, 2017 through January 23, 2022; (3) authorize the Board Secretary to attest to the Order resetting compensation; and (4) adopt Resolution No.____________ and Order No.____________.
Cargo & Industrial Real Estate
2. RESOLUTION NO.____________ - APPROVE FIRST AMENDMENT TO PERMIT NO. 892 WITH TRI-MARINE FISH COMPANY, LLC
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the First Amendment to Permit No. 892 (P892) between the City of Los Angeles Harbor Department (Harbor Department) and Tri-Marine Fish Company, LLC (Tri-Marine). The proposed amendment will (1) modify the existing premises by combining parcels and adding additional areas (as depicted on Exhibit A-2); (2) provide a First Right of Refusal option for Parcel 6 (as depicted on Exhibit A-2); (3) replace the existing term with a new fixed 20-year term; (4) revise the rental structure to include a Minimum Annual Rent (MAR) and percentage rent provision; (5) include five-year rental resets based upon the market, and annual rental resets based upon the movement of the Consumer Price Index (CPI) capped at 5 percent; and (6) provide a one-time rental credit for improvements to the premises installed by the tenant. In Fiscal Year 2016/2017, Tri-Marine paid the Harbor Department $299,883.60. Under this amendment, Tri-Marine will be financially responsible for paying an estimated annual compensation of $562,792.00. Tri-Marine's total employment is between 50-100 jobs per year in the peak season.
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 1(14) 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 the First Amendment the Rate of Return is expected to increase from its current level; (3) approve the proposed First Amendment to Permit No. 892 with Tri-Marine Fish Company, LLC; (4) direct the Board Secretary to transmit the First Amendment to Permit No. 892 to the City Council for approval pursuant to Charter Section 606 of the City Charter; (5) authorize the Executive Director to execute and the Board Secretary attest to the First Amendment to Permit No. 892 upon approval by City Council; and (6) adopt Resolution No.____________.
Port Pilots
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the Board of Harbor Commissioners (Board) approve the City of Los Angeles Harbor Department (Harbor) to temporarily amend the Port of Los Angeles Tariff No. 4 (Tariff), Section Three, Item No. 330 - Charges for Pilotage. The Harbor Department provides piloting service that is available to all vessels calling at the Port of Los Angeles (Port). Per the Tariff, a sum of fees is assessed against all vessels subject to the payment of pilotage. Tariff Item No. 330 regarding Charges for Pilotage (Pilotage) is based on a vessel's tonnage and length over all plus surcharge per move. The proposed amendment will affect the Pilotage calculation such that the Overall Length (LOA) fee and all other fee schedules related to Pilotage would be increased approximately 14 percent, effective July 1, 2017. The Gross Registered Ton (GRT) rate would remain at $0.0063 and the Surcharge per Move would remain at $105. This proposed adjustment supports the ongoing phased cost recovery effort to balance the Los Angeles Port Pilot budget. Total pilot revenues are expected to increase by approximately $4 million annually, depending on the number of vessels, vessel size, vessel weight, and number of moves both within as well as entering and leaving the port.
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 1(31) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Amendment to Port of Los Angeles Tariff No. 4 revising Section Three Pilotage, Item No. 330 (b), (d), (e), (f), and (g), 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; (3) adopt Temporary Order No.____________ to amend Section 3 Pilotage, Item No. 330 (b), (d), (e), (f), and (g) in the Port of Los Angeles Tariff No. 4; (4) authorize the Board Secretary to certify to the adoption of the Temporary Order by the Board of Harbor Commissioners 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 City Charter Section 653(b); and (5) adopt Resolution No.____________.
Port Pilots
4. RESOLUTION NO.____________ - APPROVING PERMANENT ORDER AMENDING PORT OF LOS ANGELES TARIFF NO. 4, SECTION THREE, ITEM NO. 330 - "CHARGES FOR PILOTAGE"
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests the Board of Harbor Commissioners (Board) approve the City of Los Angeles Harbor Department (Harbor) to permanently amend the Port of Los Angeles Tariff No. 4 (Tariff), Section Three, Item No. 330 - Charges for Pilotage. The Harbor Department provides piloting service that is available to all vessels calling at the Port of Los Angeles (Port). Per the Tariff, a sum of fees is assessed against all vessels subject to the payment of pilotage. Tariff Item No. 330 regarding Charges for Pilotage (Pilotage) is based on a vessel's tonnage and length over all plus surcharge per move. The proposed amendment will affect the Pilotage calculation such that the Overall Length (LOA) fee and all other fee schedules related to Pilotage would be increased approximately 14 percent, effective July 1, 2017. The Gross Registered Ton (GRT) rate would remain at $0.0063 and the Surcharge per Move would remain at $105. This proposed adjustment supports the ongoing phased cost recovery effort to balance the Los Angeles Port Pilot budget. Total pilot revenues are expected to increase by approximately $4 million annually, depending on the number of vessels, vessel size, vessel weight, and number of moves both within as well as entering and leaving the port.
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 1(31) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Amendment to Port of Los Angeles Tariff No. 4 revising Section Three Pilotage, Item No. 330 (b), (d), (e), (f), and (g), 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; (3) adopt Permanent Order No. _____ to amend Section 3 Pilotage, Item No. 330 (b), (d), (e), (f), and (g) in the Port of Los Angeles Tariff No. 4; (4) 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); (5) authorize the Board Secretary to execute the Permanent Order and Ordinance amending Tariff No. 4 as stated above, and upon its publication, transmit the Orders and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website; and (6) adopt Resolution No. ___________.
Regular Items (5 - 8)
Waterfront & Commercial Real Estate
5. RESOLUTION NO.____________ - APPROVE THIRD AMENDMENT TO PERMIT NO. 897 WITH CATALINA CHANNEL EXPRESS, INC.
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the Third Amendment to Permit No. 897 (Permit) with Catalina Channel Express, Inc. (Catalina Express), which will increase the premises by 32,881 square feet (s.f.) to accommodate the larger footprint needed for freight operations of the sublease with Avalon Freight Services, LLC (AFS). The increase in area will result in an 18.9 percent increase in minimum annual rent from $259,073.40 to $308,047.90, which is the financial responsibility of Catalina Express.
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(12) and 1(14) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the proposed Third Amendment to Permit No. 897 with Catalina Channel Express, Inc.; (3) direct the Board Secretary to transmit the Third Amendment to Permit No. 897 to the City Council for approval pursuant to Charter Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Third Amendment to Permit No. 897 upon approval by City Council; and (5) adopt Resolution No.____________.
Cargo & Industrial Real Estate
6. RESOLUTION NO.____________ - APPROVE SUCCESSOR PERMIT NO. 910 WITH U.S. BORAX, INC.
Transmittal 1
Transmittal 2
Summary: Staff requests approval of successor Permit No. 910 (P-910) with U.S. Borax, Inc. (Borax) for occupancy and use of 27,900 square feet (sf) of submerged land; 36,770 sf of land for the northerly railroad spur tracks for transit and storage of railcars; 15,662 sf of land for the southerly railroad spur tracks for transit and loading/unloading of railcars; and 34,419 sf of land for a parking lot. P-910 is a successor term permit to Permit No. 27, Permit No. 24, and Revocable Permit No. 1570. City of Los Angeles Harbor Department (Harbor Department) staff has negotiated a 30-year successor permit for uses associated with the operation of the Borax terminal adjacent to the P-910 premises. Borax paid the Harbor Department over $94,500 in rent and over $63,000 in dockage in the past fiscal year. Borax will be financially responsible for a new base rent of $240,548.70 per year, which is subject to annual Consumer Price Index (CPI) and five-year rental adjustments as well as responsible for all dockage charges which are expected to remain at over $63,000 in the coming years.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environment Quality Act (CEQA) under Article III Class 1(14) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve Permit No. 910 with U.S. Borax, Inc.; (3) direct the Board Secretary to transmit Permit No. 910 to City Council for approval pursuant to Charter Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to Permit No. 910 upon approval by City Council; and (5) adopt Resolution No.____________.
Cargo & Industrial Real Estate
7. RESOLUTION NO.____________ - ORDER RESETTING COMPENSATION UNDER PERMIT NO. 787 WITH YANG MING MARINE TRANSPORT CORPORATION
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the Order resetting compensation under Permit No. 787 (Permit) between the City of Los Angeles Harbor Department (Harbor Department) and Yang Ming Marine Transport Corporation (Yang Ming). The Permit is for a 25-year term, effective October 11, 1996 through October 10, 2021. The Permit grants Yang Ming nonexclusive use of 186.13 acres at Berths 121-131 for container terminal operations. The Order resetting compensation is for the five-year period of October 11, 2016 through October 10, 2021. Compensation for this period is proposed to remain unchanged from the previous five-year compensation period and is the financial responsibility of Yang Ming.
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 1(14) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Order resetting compensation under Permit No. 787 with Yang Ming Marine Transport Corporation for the five-year period of October 11, 2016 to October 10, 2021; (3) authorize the Board Secretary to attest to the Order resetting compensation to be paid by Yang Ming Marine Transport Corporation pursuant to Section 4(h) of Permit No. 787; and (4) adopt Resolution No.____________ and Order No.____________.
Financial Management
8. RESOLUTION NO.____________ - ADOPTION OF PROPOSED FISCAL YEAR 2017/18 ANNUAL BUDGET
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the Fiscal Year (FY) 2017/18 Proposed Annual Budget (Proposed Budget) of $1,174,951,829. The Proposed Budget is aligned with the Updated 2012 – 2017 Strategic Plan (Strategic Plan Update) and will enable the City of Los Angeles Harbor Department (Harbor Department) to meet its commitments in the upcoming fiscal year. Adoption of the Proposed Budget will position the Port of Los Angeles (Port) to deliver value to its customers by providing superior infrastructure and promoting efficient operations as well as forging strong, lasting relationships with its stakeholders.
The Proposed Budget includes sources and appropriations of funds as follows:
The Proposed Budget represents the ongoing commitment of Harbor Department staff to operate and maintain the Port in a fiscally sound manner according to the guidelines, policies, and direction set forth by the Board of Harbor Commissioners (Board). Furthermore, the Proposed Budget complies with the Board-approved Financial Policies that relate to debt rating, debt service coverage, and reserve levels.
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) adopt the Fiscal Year 2017/18 Proposed Annual Budget for the City of Los Angeles Harbor Department and appropriate funds in accordance herewith; (3) authorize the Executive Director, or his designee, to make any technical adjustments consistent with the Board action(s) to the Fiscal Year 2017/18 Proposed Annual Budget documents in the implementation of this budget; and (4) adopt Resolution No.____________.
CLOSED SESSION
K. Closed Session Items
L. Adjournment