REGULAR MEETING AGENDA
THURSDAY, JUNE 15, 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
CONVENE IN MEMORY OF DAVID CHRISMAN AND TRACIENNE ALLMON
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 from Commissioners
F. Board Committee Reports
1. Alameda Corridor Transportation Authority (ACTA) Meeting of June 8, 2017
2. Joint LA/LB Clean Air Action Plan (CAAP) Committee Meeting of June 9, 2017
G. Approval of Minutes
Special Meetings (2) of June 1, 2017
H. Presentation
I. Level I Coastal Development Permit Report
J. Board Reports of the Executive Director
Consent Items (1- 9)
Cargo Marketing
1. RESOLUTION NO. - APPROVAL OF SECOND AMENDMENT TO FOREIGN-TRADE ZONE DEVELOPER AGREEMENT NO. 2537 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PROLOGIS TARGETED U.S. LOGISTICS FUND, L.P. FTZ 202, SITE 7
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the approval of a (Second Amendment) of the Foreign-Trade Zone (FTZ) Developer Agreement between the City of Los Angeles Harbor Department (Harbor Department) and Prologis Targeted U.S. Logistics Fund, L.P. (Prologis) to continue its FTZ status and market its warehouse within FTZ 202, Site 7, located at 1000 West Francisco Street, Torrance, California 90502. The Harbor Department, as the FTZ grantee, establishes Developer Agreements with FTZ site owners to oversee their FTZ developments. Prologis is a real estate investment firm whose principal address is located in Cerritos, California. FTZ Developer Agreement No. 2537 (Agreement) between the Harbor Department and Prologis has an original term of five years with three, five year renewal options. The first extension became effective on August 1, 2012, and is set to expire on July 31, 2017. Prologis wishes to continue its FTZ status and market its warehouse as a FTZ warehouse and has requested the Harbor Department to extend the Agreement as required by the FTZ Board. This facility consists of approximately 298,000 square feet of warehouse and office space on 17.5 acres parcel within Magnet Site 7 located approximately nine miles from the Port of Los Angeles. This proposed Amendment will not require funding by the Harbor Department. This second renewal includes updated indemnification and insurance language provisions. All remaining terms and conditions of the Agreement shall remain in full force and effect, except as amended herein. Upon approval, the Agreement will remain in effect through July 31, 2022.
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 III Class 1 (14), of the Los Angeles City CEQA Guidelines; (2) approve the proposed Second Amendment of Foreign-Trade Zone Developer Agreement No. 2537 between the City of Los Angeles Harbor Department and Prologis Targeted U.S. Logistics Fund, L.P.; (3) direct the Board Secretary to transmit the proposed Second Amendment to Foreign-Trade Zone Developer Agreement No. 2537 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 of the Los Angeles Administrative Code; (4) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the proposed Second Amendment to Foreign-Trade Zone Developer Agreement No. 2537; and (5) adopt Resolution No.
Cargo Marketing
2. RESOLUTION NO. - APPROVAL OF SECOND AMENDMENT FOR FOREIGN TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 2606 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND NIPPON EXPRESS USA, INC. FTZ 202, SITE 7B
Tranmsittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the approval of a Second Amendment (Second Amendment) of Foreign-Trade Zone (FTZ) Operating Agreement No. 2606 between the City of Los Angeles Harbor Department (Harbor Department) and Nippon Express USA, Inc. (Nippon Express) to continue operating its warehouses within FTZ 202, Site 7B, located at 990 Francisco Street, Torrance, California 90502. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ site owners to oversee their FTZ operations. FTZ Operating Agreement No. 2606 between the Harbor Department and Nippon Express has an original term of a five year agreement with three, five year renewal options. The first extension commenced on August 1, 2012, and is set to expire on July 31, 2017. Nippon Express wishes to continue operating its warehouses under the FTZ program and is requesting the Harbor Department to extend the Agreement, as required by the FTZ Board. Site 7B consists of three warehouses totaling approximately 300,000 square feet and office space on 93 acres located approximately nine miles from the Port of Los Angeles. Nippon Express will be operating its warehouse under FTZ procedures as a multi-usage site. This proposed Second Amendment will not require funding by the Harbor Department. Upon approval, the agreement will remain in effect through July 31, 2022.
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 III Class 1 (14), of the Los Angeles City CEQA Guidelines; (2) approve the proposed Second Amendment of the Foreign-Trade Zone Operating Agreement No. 2606 between the City of Los Angeles Harbor Department and Nippon Express USA, Inc.; (3) direct the Board Secretary to transmit the proposed Second Amendment of Foreign-Trade Zone Operating Agreement No. 2606 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 of the Los Angeles Administrative Code; (4) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Second Amendment of Foreign-Trade Zone Operating Agreement No. 2606; and (5) adopt Resolution No .
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the First Amendment to Agreement No. 14-3262 with California Dining Services (Cal Dining) to extend the length of the current three- year agreement by one year for a total term of four years, and increase the contract amount by $107,000 to cover the additional year’s expenses, for a total contract amount of $428,000. Cal Dining operates the Port Pantry Café (Port Pantry) at the Harbor Administration Building (HAB) and provides vending machine, catering, and coffee services. Staff intends to release a Request For Proposal (RFP) for food service in January 2018 to ensure uninterrupted food service upon the proposed amended expiration date of August 6, 2018. The City of Los Angeles Harbor Department is financially responsible for payments to Cal Dining.
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 First Amendment to Agreement No. 14- 3262 with California Dining Services; (3) authorize the Executive Director to execute and Board Secretary to attest to the First Amendment; and (4) adopt Resolution No.
Waterfront & Commercial Real Estate
4. RESOLUTION NO. - APPROVE LICENSE AGREEMENT WITH BICYCLE TRANSIT SYSTEMS, INC.
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of the License Agreement (Agreement) with Bicycle Transit Systems, Inc. (BTS) for use of portions of the following premises within the Harbor District as required to install and operate Metro Bike Share stations - Location 1: Cruise Terminal - Fan Fare Fountain; Location 2: Catalina Express; Location 3: USS Iowa; Location 4: Downtown Harbor; Location 5: Crafted/22nd St. Park; Location 6: Ports O’ Call; Location 7: Doubletree Hotel; Location 8: Cabrillo Beach; Location 9: Wilmington Waterfront Park (West); Location 10: Wilmington Waterfront Park (East); and Location 11: Banning’s Landing. All costs associated with installation and maintenance of the bike facilities are shared between the City of Los Angeles Harbor Department (Harbor Department) and the Los Angeles County Metropolitan Transportation Authority (LACMTA), as outlined in the Memorandum of Understanding (MOU), which was approved by the Board of Harbor Commissioners (Board) on November 17, 2016. There is no fee associated with this Board action.
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, Classes 1(1) and 3(4) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the License Agreement for Bicycle Transit Systems, Inc.; (3) authorize the Executive Director to execute and the Board Secretary to attest to License Agreement; and (4) adopt Resolution No.
Waterfront & Commercial Real Estate
5. RESOLUTION NO. - APPROVE OPERATING AGREEMENT WITH PARKING CONCEPTS, INC.
Summary: Staff requests approval of the Operating Agreement (Agreement) with Parking Concepts, Inc. (PCI) for the management, operation and maintenance of the parking facilities serving the World Cruise Center, Catalina Sea & Air Terminal, and the USS Iowa (Parking Facilities) and offsite parking lots, as needed. The Agreement is for a period of five years, with an option to renew for five years. Under the Agreement, PCI will furnish improvements to update the existing equipment to improve service levels. The City of Los Angeles Harbor Department (Harbor Department) reserves the right to terminate or cancel all or any part of the Agreement and will reimburse PCI for unamortized investments if canceled within five years. PCI will be financially responsible for remitting payments to the Harbor Department equaling 81 percent of gross receipts up to $5 million, 82 percent of gross receipts over $5 million up to $6 million, and 83 percent of gross receipts over $6 million. With the new agreement, it is expected that gross receipts, less allowable exclusions, will average approximately $3.8 million a year and with revenue to the Harbor Department averaging $3 million annually.
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 in accordance with the Los Angeles City Charter Section 1022, the services required can be performed more feasibly by an outside contractor than by City employees; (3) approve the Operating Agreement with Parking Concepts, Inc.; (4) direct the Board Secretary to transmit the Agreement 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 Operating Agreement upon approval of the City Council; and (6) adopt Resolution No.
Engineering
6. RESOLUTION NO. - PROPOSED RENEWAL OF THE STANDARD OFFER FOR PORT OF LOS ANGELES ALTERNATIVE MARITIME POWER ELECTRIC SERVICE AGREEMENT BETWEEN THE CITY OF LOS ANGELES DEPARTMENT OF WATER AND POWER AND THE LOS ANGELES HARBOR DEPARTMENT
Transmittal 1
Summary: Staff requests the Board of Harbor Commissioners adopt a Resolution and approve the proposed renewal of the Standard Offer of Electric Service Agreement (Agreement). Alternative Maritime Power (AMP) systems allow ships to be powered by shore-supplied electrical power while at berth. To transfer power from the vessel generators to the utility supplied source it is required to connect the ship in parallel to the utility lines. The City of Los Angeles Department of Water and Power (LADWP) considers this arrangement as a customer-owned generator connection and requires the customer to enter an Agreement to purchase power for the AMP systems. This Agreement also allows the application of LADWP's published AMP rate and is valid for three years from its execution date after which it is required to be renewed every subsequent three years. The current Agreement expired January 9, 2017. The proposed Agreement will provide another three-year term for LADWP to continue allowing AMP connections and applying the AMP rate.
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 proposed City of Los Angeles Department of Water and Power (LADWP) Standard Offer for the Port of Los Angeles’ Alternative Maritime Power (AMP) Electric Service Agreement (Agreement) allowing LADWP to service AMP connections and to apply the published AMP rate for a second three-year term; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement for and or behalf of the Board; (4) authorize the Executive Director or designee to on behalf of the Board to sign and execute subject Agreement’s future renewals and amendments; (5) authorize the Executive Director or designee to act as the authorized representative for the purpose of adding or removing generation facilities from the subject Agreement as required; and (6) adopt Resolution No.
Engineering
Summary: Staff requests the Board of Harbor Commissioners approve the proposed Caltrans Cooperative Agreement No. 07-5120 (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and the State of California Department of Transportation (Caltrans) to prepare the Project Approval and Environmental Document (PA&ED) for the State Route 47 (SR 47)/Vincent Thomas Bridge and Front Street/Harbor Boulevard Interchange Reconfiguration Project (Project). This Agreement, if approved by the Board, defines the respective roles and responsibilities for each agency during the PA&ED phase, and each party is responsible for the costs they incur in performing the PA&ED work. Both parties agree to sign a Closure Statement to terminate this Agreement. This resolution does not obligate the Harbor Department to fund the other phases of this project.
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 Caltrans Cooperative Agreement No. 07-5120 between the City of Los Angeles, Harbor Department and the State of California Department of Transportation; (3) authorize the Executive Director to execute and Board Secretary to attest to said Agreement for and on behalf of the Board; and (4) adopt Resolution No.
Environmental Management
8. RESOLUTION NO. - ADOPTION OF THE FINAL INITIAL STUDY/NEGATIVE DECLARATION AND APPROVAL OF THE REMOVAL OF UNDERGROUND STORAGE TANKS AT CABRILLO MARINA, BERTH 31 PROJECT (LOS ANGELES HARBOR DEPARTMENT APPLICATION FOR PORT PERMIT NO. 161121-169; STATE CLEARINGHOUSE NO. 2017051002)
Transmittal 1
Summary: Staff requests that the Board of Harbor Commissioners (Board) adopt the Final Initial Study/Negative Declaration (IS/ND) for the proposed Removal of Underground Storage Tanks at Cabrillo Marina, Berth 31 Project (proposed Project) along with comments and responses to comments, and approve the proposed Project as described in the Final IS/ND. The proposed Project involves the removal of three, 10,000 gallon underground storage tanks (USTs) and all associated electrical utilities, pumps, conveyances, and fuel dispensers with possible additional soil remediation activities, as necessary, following the excavation and removal of the tanks. Cathay Bank is financially responsible for all costs associated with the proposed Project, including tank removal and subsequent remediation activities.
Recommendation: Board resolve to (1) find that, pursuant to the State California Environmental Quality Act Guidelines Section 15074, the Final Initial Study/Negative Declaration for the Removal of Underground Storage Tanks at Cabrillo Marina, Berth 31 Project, (a) has been completed in compliance with the State California Environmental Quality Act Guidelines and the Los Angeles City California Environmental Quality Act Guidelines; (b) was presented to the Board for review and was reviewed and considered by the Board prior to approving the proposed Project; and (c) reflects the independent judgment and analysis of the City of Los Angeles Harbor Department as the Lead Agency; (2) find that, based on the whole record before it, including, (a) the information contained in this report; and (b) the Final Initial Study/Negative Declaration for the Removal of Underground Storage Tanks at Cabrillo Marina, Berth 31 Project, the proposed Project would not have a significant effect on the environment pursuant to Public Resources Code Section 21080 and State California Environmental Quality Guidelines Section 15070; (3) find that all information added to the Final Initial Study/Negative Declaration after the public review period, but before adoption, merely clarifies, amplifies, or makes insignificant modifications, and that recirculation is not necessary; (4) adopt the Final Initial Study/Negative Declaration for the Removal of Underground Storage Tanks at Cabrillo Marina, Berth 31 Project; (5) authorize the Environmental Management Division to file the Notice of Determination for the subject proposed Project with the Los Angeles City and County Clerks; (6) approve the Removal of Underground Storage Tanks at Cabrillo Marina, Berth 31 Project; and (7) adopt Resolution No.
Office of the City Attorney
9. RESOLUTION NO. - APPROVE FIRST AMENDMENTS TO AGREEMENT E-6845 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND NOSSAMAN LLP AND AGREEMENT E-6846 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND ZUBER LAWLER AND DEL DUCA
Transmittal 1
Transmittal 2
Summary: The Office of the City Attorney requests the Board of Harbor Commissioners (Board) to approve two First Amendments (Amendments) to Executive Director Agreement No. E-6845 with Nossaman LLP (Nossaman) and Agreement No. E-6846 with Zuber Lawler and Del Duca. The Amendments for both Agreements (No. E-6845 and No.E-6846) extends the term of the Agreements by two years. The term extensions are necessary due to ongoing professional legal services for real property matters. 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 First Amendment to Agreement No. E-6845 with Nossaman, extending the one-year term to a total of three years with no additional compensation; (3) approve the First Amendment to Agreement No. E-6846 with Zuber Lawler and Del Duca, extending the one-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 First Amendment to Agreement E-6845 and the First Amendment to Agreement No. E-6846; and (5) adopt Resolution No.
Regular Items (10 & 11)
Waterfront & Commercial Real Estate
10. RESOLUTION NO. - APPROVE FIRST AMENDMENT TO PERMIT NO. 899 WITH PACIFIC BATTLESHIP CENTER
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the First Amendment to Permit No. 899 (P899) with Pacific Battleship Center (PBC). P899 was granted on May 25, 2012, and has a term of ten years with two five-year options to renew. The proposed First Amendment to P899 proposes: 1) limited permission for PBC to host special events without prior approval of the Executive Director that are visitor-serving and promotional for the LA Waterfront but are not maritime, military, or educational in nature; 2) allowance to host overnight and separate adult and youth educational programs; 3) requirement for annual maintenance expenditure as a financial responsibility of PBC in the amount of $750,000 and deletion of the current end of term escrow account for the same purpose; 4) revisions to the insurance provision to cover events serving alcohol and events using pyrotechnics; and 5) incorporation of an overnight security plan that provides a minimum of two, and maximum of six, staff to stay overnight to monitor the ship; and incorporation of criteria for parking pass use.
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 First Amendment to Permit No. 899 with Pacific Battleship Center; (3) direct the Board Secretary to transmit the First Amendment to Permit No. 899 to the City Council for approval pursuant to Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to Permit No. 899 upon approval by City Council; and (5) adopt Resolution No.
Executive Office
11. RESOLUTION NO. - APPROVAL OF REQUEST TO AMEND 2017 ALAMEDA CORRIDOR MAINTENANCE OF WAY AND OPERATIONS & MAINTENANCE BUDGETS FOR DAMAGE CAUSED BY REDONDO JUNCTION TOWER FIRE ON MAY 28, 2017
Transmittal 1
Summary: Staff requests the Board of Harbor Commissioners adopt a Resolution approving and providing mutual agreement for $750,000 line item amendment to the Alameda Corridor Transportation Authority’s (ACTA) Maintenance of Way (MOW) and Operations & Maintenance (O&M) Budgets for repairs due to a fire in Redondo Junction Tower on May 28, 2017. Staff also requests the Board of Harbor Commissioners adopt a Resolution approving and providing mutual agreement for ACTA’s restoration of the original 2017 approved $200,000 contingency, which will be used as needed to initiate or complete activities, to its full value following completion of the repairs/replacement.
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 request for a new $750,000 line item in the previously approved MOW and O&M Budgets for repairs and replacement of Control Point (CP) East Redondo due to a fire in Redondo Junction Tower on May 28, 2017, which will be charged to the Capital Maintenance Reserve Account; (3) approve and provide mutual agreement for ACTA to restore the original 2017 approved $200,000 contingency, which will be used as needed to initiate or complete activities, to its full value following completion of the repairs/replacement; (4) 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 (5) adopt Resolution No.
CLOSED SESSION
K. Closed Session Items
1. CONFERENCE WITH LEGAL COUNSEL - INITIATE LITIGATION
(Subdivision (d)(4) of Government Code Section 54956.9)
2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Subdivision (b) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9
(two (2) cases).
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 892 with Tri-Marine Fish Company, LLC:
Property: Berth 264, Terminal Island
City Negotiator: Jack Hedge
Tenant Negotiator: Anthony Vuoso
Negotiating Parties: City and Tri-Marine Fish Company, LLC
Under Negotiation: Price and Terms
L. Adjournment