August 7, 2017
NOTICE
SPECIAL BOARD MEETING - THURSDAY, AUGUST 10, 2017
SUBJECT: THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS SPECIAL MEETING THURSDAY, AUGUST 10, 2017
The Los Angeles Board of Harbor Commissioners scheduled a Special Meeting
on
Thursday, August 10, 2017 beginning with Closed Session at 6:00pm.
Open Session shall begin no sooner than 6:15pm.
Two Locations
Port of Los Angeles Harbor Administration Building
425 S. Palos Verdes Street, Board Room, 2nd Floor
San Pedro, California 90731
and via Teleconference
2100 Kaiwiki Road
Hilo, Hawaii, 96720
Please refer to www.portoflosangeles.org for further updates and/or details.
SPECIAL MEETING AGENDA
THURSDAY, AUGUST 10, 2017 AT 6:00 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
A. Roll Call
CLOSED SESSION
B. Closed Session Items
1. 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
City Negotiator: Michael Galvin
Tenant Negotiator: Jenny Krusoe
Negotiating Parties: City and AltaSea at the Port of Los Angeles
Under Negotiation: Price and Terms
2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (d)(2) of Government Code Section 54956.9)
Receipt of Claim pursuant to Government Claims Act (one claim)
Claimant: California United Terminal Inc.
Agency claimed against: City of Los Angeles
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:
(one (1) case).
OPEN SESSION
C. Executive Director Remarks
D. Comments from the Public on Non-Agenda Items
E. Report from the Neighborhood Council Representatives
F. Reports of the Commissioners
G. Board Committee Reports
H. Approval of the Minutes
I. Presentation
J. Election of Officers
PURSUANT TO SECTION 503(A) OF THE CHARTER OF THE CITY OF LOS ANGELES, WHICH PROVIDES THAT THE ELECTION OF THE PRESIDENT AND VICE PRESIDENT SHALL BE HELD EACH YEAR, THE BOARD OF HARBOR COMMISSIONERS SHALL HOLD ITS ELECTION TODAY TO ELECT THE FOLLOWING OFFICERS TO SERVE FOR THE ENSUING TERM:
PRESIDENT:
VICE PRESIDENT:
K. Level I Coastal Development Permit Report
L. Board Reports of the Executive Director
Consent Items (1-5)
Construction
1. RESOLUTION NO.____________ - AWARD OF CONTRACT CONSULTANT: PMWEB, INC. WEB-BASED CONSTRUCTION PROJECT MANAGEMENT SYSTEM
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests that the Board of Harbor Commissioners approve the award of this agreement to PMWeb, Inc., to provide a subscription to, and implement, PMWeb, a Web-based construction project management system. The Agreement amount is not-to-exceed $511,710, and the Agreement duration is three years. The Harbor Department is responsible for payment of expenses incurred under the proposed 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 the City Charter Section 1022, work under the subject Agreement can be performed more economically and feasibly by an independent consultant, and is necessary due to current employees being committed to other assignments, and expertise that is needed for the subject services; (3) award the Agreement to PMWeb, Inc. in the amount of $511,710; and that payment be authorized from the Construction Management Services account. The Agreement duration for the performance of the work will be three years; (4) authorize the Executive Director to execute, and the Board Secretary to attest to, this Agreement; and (5) adopt Resolution No.____________.
Community Relations
Summary: Staff requests that the Board of Harbor Commissioners approve a three-year agreement with Sensis Inc. (Sensis) to provide the City of Los Angeles Harbor Department (Port) with cargo trade and LA Waterfront advertising creation and media-planning/placement support with an emphasis on Internet-based (“digitalâ€) advertising. The proposed annual authority for the combined programs is not-to-exceed $500,000 ($150,000 for agency services and $350,000 for direct media costs) with a total not-to-exceed amount of $1,500,000 for the duration of the three-year agreement. The Port is financially responsible for expenses incurred under the proposed Agreement.
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) find that in accordance with the City Charter Section 1022, work under the Personal Service Agreement can be performed more feasibly by an independent consultant than by City employees; (3) approve the Agreement for a term of three years for a total not-to-exceed amount of $1,500,000; (4) authorize the Executive Director to execute and the Board Secretary to attest to said agreement for and on behalf of the Board; and (5) adopt Resolution No.____________.
Cargo Marketing
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the approval of a Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and Molex, LLC. (Molex) to operate its warehouse within FTZ 202, Site 51, located at 12200 Arrow Route, Rancho Cucamonga, California 91739. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreement with FTZ site operators to oversee their FTZ operations. Site 51 consists of a warehouse totaling approximately 249,000 square feet and office space on 15.08 acres located approximately 60 miles from the Port of Los Angeles. Molex will be operating its warehouse under FTZ procedures as a single-usage site. The proposed FTZ Operating Agreement (Agreement) is for a term of five years with three, five-year renewal options.
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 Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and Molex, LLC; (3) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating Agreement 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 Foreign-Trade Zone Operating Agreement; and (5) adopt Resolution No.____________.
Cargo & Industrial Real Estate
4. RESOLUTION NO.____________ - APPROVE PERMIT NO. 925 WITH AUGELLO ENTERPRISES, LLC
Transmittal 1
Transmittal 2
Summary: Staff requests approval of Permit No. 925 (Permit) with Augello Enterprises, LLC (Augello) for use of City of Los Angeles Harbor Department (Harbor Department) land on Terminal Island for a maximum term of 20 years (five years, with three five-year extension options). Approval of the proposed Permit will transfer rights for use of an existing tenant facility located in Fish Harbor to continue the wet fish processing operations. The Permit is consistent with other Fish Harbor permits and will provide the Harbor Department maximum flexibility for future planned development in Fish Harbor, while providing Augello an adequate term to plan for future business operations. Under Permit No. 925, compensation to the Harbor Department will be set at $101,856.48 annually (payable at $8,488.04 per month), escalating eight percent per year for the first five years, plus annual Consumer Price Index (CPI) rate adjustments (with a floor of zero and no cap). All improvements on the premises are owned by the tenant, and as such, the tenant will be responsible for all operation and maintenance costs of the improvements.
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 Permit No. 925 with Augello Enterprises, LLC; (3) direct the Board Secretary to transmit the Permit No. 925 to the City Council pursuant to Charter Section 606; (4) authorize the Executive Director to execute and the Board Secretary to attest to proposed Permit No. 925 upon approval by City Council; and (5) adopt Resolution No.____________.
Contracts and Purchasing
5. RESOLUTION NO.____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND MERRIWETHER & WILLIAMS INSURANCE SERVICES, INC. FOR THE CITYWIDE BOND ASSISTANCE PROGRAM
Transmittal 1
Transmittal 2
Summary: Staff is requesting approval to award an Agreement to Merriwether & Williams Insurance Services, Inc. (Los Angeles, CA) for the Citywide Bond Assistance Program. The proposed agreement is for a three-year term, commencing March 1, 2016, at an amount not to exceed $450,000. This Agreement is the financial responsibility of the Harbor Department.
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) find that in accordance with the City Charter Section 1022, City employees do not have the expertise to perform the work covered under this Agreement; (3) approve the Agreement with Merriwether & Williams Insurance Services, Inc. in an amount not to exceed $450,000 for a term of three-years commencing March 1, 2016; (4) authorize the Executive Director or designee to execute and attest to the Agreement; and (5) adopt Resolution No.____________.
Regular Items (6 & 7)
Waterfront & Commercial Real Estate
6. RESOLUTION NO.____________ - APPROVE PROPOSED AMENDED AND RESTATED LEASE NO. 904 WITH ALTASEA AT THE PORT OF LOS ANGELES
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Summary: Staff requests the Board of Harbor Commissioners (Board) approve the Amended and Restated Lease No. 904 (Restated Lease) with AltaSea at the Port of Los Angeles (AltaSea). Lease No. 904 was granted by the Board to the Rockefeller Philanthropy Advisors, Inc. on November 7, 2013 and subsequently assigned to AltaSea. The premises, located at City Dock No. 1, is for use as a water-dependent, academic, governmental, non-profit and for profit marine research facility. AltaSea is a tenant in good standing and has complied with all provisions of the Lease. AltaSea requested the City of Los Angeles Harbor Department (Harbor Department) to consider various changes to its Lease in order to expedite activation and development of the AltaSea premises; reduce each party’s financial obligation without compromising the original mission and goals including providing comparable public access infrastructure, educational and public programming, job creation and economic activity and; provide clarity and efficiency in lease administration by revising the original lease document. The rent and rent credit structure remains unchanged. The 50-year lease term began on December 23, 2013. The Restated Lease will have approximately 45 years remaining until its expiration on December 22, 2063, and the compensation structure remains unchanged. The Restated Lease maintains AltaSea’s relationship with Southern California Marine Institute (SCMI) and the requirement to establish a new SCMI headquarters facility at Berth 57. During the first ten years of the Restated Lease, AltaSea is expected to invest approximately $105 million in capital projects that will create 180,000 square feet of water-dependent tenant space at Warehouse 58-60, the Wharf Plaza and Educational Pavilion at Berth 57.5, a new headquarters for SCMI, and an Engagement Center at Berth 56 that will provide a new publicly accessible attraction on the LA Waterfront. In the same time frame, the Harbor Department is expected to invest approximately $37 million in street improvement projects, sea wall repair, and site remediation.
Recommendation: Board resolve to (1) find that it is in the best interest of the City of Los Angeles Harbor Department to allow AltaSea at the Port of Los Angeles Lease No. 904 to be amended and restated; (2) consider the Second Addendum to the certified Environmental Impact Report for the City Dock No. 1 Marine Research Center Project; (3) find that in accordance with the provisions of the California Environmental Quality Act Guidelines Section 15164, the revisions made to the project elements will not result in any new significant environmental effects or substantially more severe effects than previously analyzed in the certified City Dock No. 1 Marine Research Center Project Environmental Impact Report (State Clearinghouse #2010121013 certified in 2012), Addendum #1 considered in September 2013, and Addendum #2, considered herein; (4) find, pursuant to City Charter Section 654(a)(1), that leasing 4,510 linear feet of waterfront to AltaSea is in the best interest of the City of Los Angeles Harbor Department and the City of Los Angeles, due to the development of new public waterfront access and the access that will be provided to the government, academic, and business subtenants; (5) find that it is in the best interest of the City of Los Angeles Harbor Department to deviate from the Rate-of-Return Policy, due to the financial structure required to create of an urban research facility, and in consideration of the significant Non-Monetary Compensation received in the form of education and public programming, job creation, and other local and regional economic benefits; (6) find that it is in the best interest of the City of Los Angeles Harbor Department to deviate from Section IX.2 Market Rent of the Waterfront Commercial Leasing Guidelines, due to the in kind compensation received in the form of education and public programming, job creation, and other economic activity; (7) find that the forms of the following documents meet the criteria as defined in the Amended and Restated Lease No. 904: a. Business Plans for Berths 58-60 b. Sublease Template for Berths 58-60 c. SCMI Sublease at Berth 57 d. Pledge Commitment/Grant Agreement; (8) approve the Amended and Restated Lease No. 904 with AltaSea at the Port of Los Angeles in substantially the form submitted; (9) direct the Board Secretary to transmit the Amended and Restated Lease No. 904 to the City Council for approval pursuant to Charter Sections 654(a)(1), 606 and 607(a); (10) authorize the Executive Director to execute and the Board Secretary to attest to the Amended and Restated Lease No. 904 upon approval by the City Council; and (11) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
7. RESOLUTION NO.____________ - FIRST AMENDMENT TO AGREEMENT NO. 14-3279 WITH ANNENBERG FOUNDATION
Transmittal 1
Summary: Staff requests approval of the First Amendment to Agreement No. 14-3279 (First Amendment) between the Annenberg Foundation and the City of Los Angeles Harbor Department (Harbor Department). The First Amendment will terminate Guaranty Agreement No. 14-3279 (Guaranty Agreement) for the reimbursement of the Harbor Department’s expenditures for undertaking certain engineering design work for the Berth 57 wharf retrofit and ground improvements and exploration of design alternatives for AltaSea at the Port of Los Angeles (AltaSea). The First Amendment also serves as a mutual general release for both parties relating to any claims, liabilities etc. that result from the Guaranty 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) approve the First Amendment to Agreement No. 14-3279; (3) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to Agreement No. 14-3279; and (4) adopt Resolution No.____________.
M. Adjournment