REGULAR MEETING AGENDA
THURSDAY, AUGUST 17, 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
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
1. Regular Meeting of July 20, 2017
H. Presentation
1. 2016 Inventory of Air Emissions
I. Board Reports of the Executive Director
Regular Items (1 - 7)
Cargo & Industrial Real Estate
Summary: Staff requests approval of an Indemnity Agreement (Agreement) with the Harbor Performance Enhancement Center, LLC (HPEC). If approved, the Indemnity Agreement will indemnify the City of Los Angeles Harbor Department (Harbor Department) against any and all claims associated with its review, as lead agency, under California Environmental Quality Act (CEQA) activities, and the reimbursement, not to exceed $200,000, for Harbor Department staff time. The CEQA assessment is related to the proposed development of the former U.S. Customs House and Los Angeles Export Terminals (LAXT) facility (Project site) and a pilot study to market-test the validity of HPEC's proposed operational model. The site of the pilot study will be granted under a Revocable Permit No. 17-05, to be presented to the Board of Harbor Commissioners for approval as a separate item. Approval of the Agreement will protect the Harbor Department against the costs (i.e., legal fees) associated with the defense of a lawsuit for any claim regarding the approval of the CEQA assessments for the project and pilot study and any and all entitlements or conditions necessary for development of the Project site.
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 Indemnity Agreement with Harbor Performance Enhancement Center, LLC; (3) direct the Board Secretary to transmit the proposed Indemnity 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 Indemnity Agreement; and (5) adopt Resolution No.____________.
Level I Coastal Development Permit Report
The Executive Director has approved one Level I CDP:
Cargo & Industrial Real Estate
2. RESOLUTION NO.____________ - ORDER RESETTING COMPENSATION UNDER PERMIT NO. 529 WITH INTERMODAL CONTAINER TRANSFER FACILITY JOINT POWERS AUTHORITY
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the Order resetting compensation under Permit No. 529 (Permit), between the City of Los Angeles Harbor Department (Harbor Department) and Intermodal Container Transfer Facility Joint Powers Authority (JPA). The JPA in turn subleases the property to the Union Pacific Railroad Company (UPRC). The Permit is a 50-year lease of approximately 147 acres for a classification yard. This reset covers the five-year period of December 1, 2016 through November 30, 2021 and reflects the current market value of the property which will be reflected as an increase in the Guaranteed Annual Rent (GAR) and the container charge. The Order will increase the amount of the GAR by 31 percent to $11,724,327.00 in the first year, and increase the container charge by 45 percent to $31.00 in the first year. This reflects the current market value of $18.29 per square foot at a 10 percent rate of return. An annual step increase of 2 percent per year will be added to simulate an annual Consumer Price Index (CPI) increase, as no CPI provisions exist within the current Permit.
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. 529 with Intermodal Container Transfer Facility Joint Powers Authority for the five-year period of December 1, 2016 to November 30, 2021; (3) authorize the Board Secretary to attest to the Order resetting compensation to be paid by Intermodal Container Transfer Facility Joint Powers Authority pursuant to Section 5(g) of Permit No. 529; and (4) adopt Resolution No.____________ and Order No.____________.
Cargo & Industrial Real Estate
3. RESOLUTION NO.____________ - APPROVAL OF JOINT REVOCABLE PERMIT NO. 17-17 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PORT OF LONG BEACH AS JOINT OWNERS, AND TESORO SOCAL PIPELINE COMPANY LLC
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of Joint Revocable Permit (JRP) No. 17-17 between the City of Los Angeles Harbor Department (Harbor Department) and Port of Long Beach (POLB), as joint owners, and Tesoro SoCal Pipeline Company LLC (Tesoro) for 364 square feet of property. Tesoro's Los Angeles Refinery Integration and Compliance Project (LARIC) will interconnect pipelines between Tesoro's Wilmington Refinery and Carson Refinery and will cross under the Alameda Corridor property jointly-owned by both Ports. Tesoro will be responsible to install, operate, and maintain the pipelines. The LARIC Project was assessed in a Final Environmental Impact Report (EIR) and approved by the South Coast Air Quality Management District on May 12, 2017. As part of this action, the Harbor Department must make certain findings and determinations pursuant to the California Environmental Quality Act (CEQA) because it is considered a Responsible Agency in granting a permit for a portion of the Project. Approval of the proposed JRP will result in Tesoro paying the minimum annual permit fee per pipeline, totaling $20,000 annually plus an annual Consumer Price Index escalator. In addition to insurance requirements, Tesoro shall provide surety bond in the amount of $5,000,0000 to assure Permittee’s full, prompt and faithful performance of all the terms, covenant and conditions of the permit, and will fully indemnify both Ports from any potential liability. Furthermore, Tesoro's parent company, Tesoro Logistics LLC, changed their name to Andeavor Logistics, a Delaware limited partnership effective August 1, 2017. Therefore, Andeavor Logistics, as Tesoro’s parent company has entered into a guaranty agreement guaranteeing full, prompt and faithful payment, performance and discharge of all of Tesoro's obligations under the JRP.
Recommendation: Board resolve to (1) find that since certification of the Final Environmental Impact Report by the South Coast Air Quality Management District (State Clearinghouse No. 2014091020), there have been (1) no substantial changes to the Project which would require major revisions of the Final Environmental Impact Report, (2) no substantial changes with respect to the circumstances under which the Project is being undertaken which would require major revisions in the Final Environmental Impact Report, and (3) no new information has become available which was not known or could have been known at the time the Final Environmental Impact Report was certified as complete; (2) adopt the Findings of Fact and Statement of Overriding Considerations; (3) adopt the measures contained in the Mitigation Monitoring and Reporting Plan that pertain to the "Interconnecting Pipelines" project element of the certified Final Environmental Impact Report; (4) approve the proposed Joint Revocable Permit No. 17-17 between the City of Los Angeles Harbor Department and Port of Long Beach, as joint owners, and Tesoro SoCal Pipeline Company LLC to install, operate and maintain a bundle of 13 pipelines for the LARIC Project; (5) direct the Real Estate Division to incorporate the measures contained in the Mitigation Monitoring and Reporting Plan that pertain to the “Interconnecting Pipelines†project element of the certified Final Environmental Impact Report into the approved Joint Revocable Permit; (6) authorize the Environmental Management Division to file the Notice of Determination with the Los Angeles County Clerk, the Los Angeles City Clerk, and the State Secretary of Resources; (7) authorize the Executive Director to execute and the Board Secretary to attest to Joint Revocable Permit No. 17-17; and (8) adopt Resolution No.__________.
Information Technology
4. RESOLUTION NO.____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PETROLEUM TELCOM, INC. FOR THE PORT POLICE RADIO SYSTEM REBANDING PROJECT, PHASE I
Transmittal 1
Transmittal 2
Summary: Staff requests approval by the Board of Harbor Commissioners (Board) to enter into an Agreement with Petroleum Telcom, Inc. (Telcom), of Oxnard, California, for the Port Police Radio System Rebanding Project, Phase I. The proposed Agreement is for duration of one year and a not-to-exceed compensation amount of $1,188,724. The Port Police Rebanding Project is needed to comply with a provision in the Middle Class Tax Relief and Jobs Creation Act of 2012 (Spectrum Act). The Spectrum Act requires the existing Port Police radio system frequencies to be vacated by February 21, 2021, which requires the Harbor Department to implement a new radio system with new frequencies. The Port Police Radio System Rebanding Project is proposed to be completed in two phases. This request is for Phase I. A separate request for Phase II will be submitted in the future to the Board of Harbor Commissioners (Board) for consideration. The Harbor Department released a Request for Proposals (RFP) on March 7, 2017, three proposals were received, of the three proposals, Telcom was selected as the strongest proposer. Expenditures under the proposed Agreement are 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 III Class 3(4) of the Los Angeles City CEQA Guidelines; (2) find that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (3) approve the Agreement with Telcom for a duration of one year and a not-to-exceed compensation amount of $1,188,724; (4) authorize the Executive Director to execute and the Board Secretary to attest; and (5) adopt Resolution No.____________.
Information Technology
5. RESOLUTION NO.____________ - AMENDED AND RESTATED AGREEMENT 16-3425 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND GENERAL ELECTRIC COMPANY FOR THE PORT INFORMATION PORTAL PILOT PROJECT
Transmittal 1
Summary: Staff is requesting the approval of the Amended and Restated Agreement No. 16-3425 (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and General Electric Company (GE), through its GE Transportation Division (GET), for the Port Information Portal (Portal) pilot project. The proposed Agreement is to expand the pilot project, a first-of-its-kind common user Portal, to provide a single information window to support enhanced maritime supply chain performance. The proposed Agreement includes hardware, software and services required to add six more terminals and 15 more shipping lines to the Portal. In addition, the Agreement includes optional as-needed enhancements, technical hosting and support, and a contingency amount. The proposed Agreement will extend the term by two additional years, for a total of three years, and increase the not-to-exceed compensation amount by an additional $11,781,370, for a total not-to-exceed compensation amount of $13,100,420. Subject to Board approval the effective dates of the Agreement will be from November 4, 2016 to November 3, 2019. The recommendation to select GET for Agreement No. 16-3425 was based on a competitive Request for Proposal (RFP) process performed by the Harbor Department. GET is headquartered in Chicago, Illinois. Expenditures under the proposed Agreement are 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) and Article III Class 6 of the Los Angeles City CEQA Guidelines; (2) find that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (3) approve the Amended and Restated Agreement No. 16-3425 to extend the existing Agreement from one year to three years and increase the not-to-exceed compensation amount from $1,319,050 to $13,100,420, a $11,781,370 increase; (4) approve the transfer of $11,192,370 from the Unappropriated Balance to Cost Center 640, Account 54310; (5) direct the Board Secretary to transmit the Resolution to the Mayor for approval pursuant to Section 343(b) of the City Charter; (6) direct the Board Secretary to notify the City Clerk of such transfer pursuant to Section 343(d) of the City Charter at the time such transfer is made; (7) authorize the Executive Director to execute and the Board Secretary to attest to said Amended and Restated Agreement No. 16-3425; and (8) adopt Resolution No.____________.
Executive Office
Summary: Staff is requesting approval of a Revenue Allocation Agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and General Electric (GE) Company, through its GE Transportation Division (GET), to address the parties’ partnership arrangement for the Data Portal (Portal) project, for which a pilot program was implemented. The Portal is a first-of-its-kind, common user portal to provide a single information window to support enhanced maritime supply chain performance that was jointly developed with GET. The proposed terms include the anticipated revenue allocation and marketing outreach to commercialize the Portal. The business terms include an exclusivity agreement, revenue sharing arrangements, and general business terms to manage the relationship between the Harbor Department and GET. The Agreement's revenue sharing arrangement is for an initial term of three years, followed by a second two year term, and concluding with an option for the City to purchase a subscription for use of the Data Portal for an additional 10 years thereafter, via separate agreement. A concurrent but separate Board Report amending and restating the portal pilot project agreement to increase the term from one year to three years and increase the not-to-exceed compensation amount under that agreement by an additional $11,781,370, for a total not-to-exceed compensation amount of $13,100,420 will also be presented to the Board.
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) and Article III Class 6 of the Los Angeles City CEQA Guidelines; (2) approve the Agreement with General Electric Company; (3) direct the Board Secretary to transmit the Agreement to the 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 Agreement upon approval by the City Council; and (5) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
7. RESOLUTION NO.____________ - APPROVE PERMIT NO. 930 WITH THE JANKOVICH COMPANY
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests approval of Permit No. 930 with The Jankovich Company (Jankovich) for the use of City of Los Angeles Harbor Department (Harbor Department) property. Jankovich currently has the right to occupy and use Harbor Department property located at Berth 74 to operate a marine fueling station under Revocable Permit No. 12-11. However, this use at the current location is in conflict with the Harbor Department’s approved Port Master Plan and the development of the San Pedro Public Market at the current Ports O' Call site. Relocation of Jankovich to Berth 73A will also require the Port Master Plan to be amended to allow Jankovich’s operations under marine support. Staff proposes a new long-term permit at Berth 73A, Berth 51, and the Canetti’s Building to allow Jankovich to move operations from the current Ports O' Call site. Staff has negotiated a proposed 20-year permit with two five-year options for uses associated with the operation of the marine fueling terminal. Jankovich will be required to restore the existing premises, construct new and restore existing improvements at the new premises, and pay the greater of $24,200.16 in minimum rent or percentage rent and tariff charges. Jankovich will receive a $3,000,000 rent credit for improvements made to the premises.
Recommendation: Board resolve to (1) adopt the Fifth Addendum to the certified San Pedro Waterfront Environmental Impact Report, and after consideration of said Addendum find that, in accordance with the provisions of the California Environmental Quality Act (CEQA) Guidelines Section 15162, the proposed Fifth Amendment will not result in any new significant environmental effects or any substantially more severe effects than previously analyzed in the certified Environmental Impact Report; (2) approve Permit No. 930 with The Jankovich Company; (3) direct the Board Secretary to transmit the Permit to the City Council for approval pursuant to Charter Sections 606 and 607; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Permit upon Board approval contingent upon approval by the City Council; and (5) adopt Resolution No.____________.
Consent Items (8 & 9)
Community Relations
8. RESOLUTION NO.____________ - COMMUNITY INVESTMENT GRANTS FOR INTERNATIONAL TRADE EDUCATION PROGRAMS, INC. AND LOS ANGELES MARITIME INSTITUTE
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of agreements with International Trade Education Programs, Inc. (ITEP), Carson, CA, and Los Angeles Maritime Institute (LAMI), San Pedro, CA, for Community Investment Grants supporting their educational programs (Agreements). ITEP and LAMI were selected through the Community Investment Grant Program process, and the committee is recommending the Board of Harbor Commissioners (Board) approve sponsorship for two years in the yearly amount of $350,000 for ITEP, for a total of $700,000, and $275,000 for LAMI, for a total of $550,000, with a combined two-year total of $1,250,000. The Harbor Department is financially responsible for funding under the proposed sponsorships.
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 the proposed Community Investment Grants are consistent with the criteria of the Board-approved Sponsorship/Hosting Policy (March 2010); (3) approve the Agreement with ITEP for a term of two years and a total not-to-exceed amount of $700,000; (4) approve the Agreement with LAMI for a term of two years and a total not-to-exceed amount of $550,000; and (5) adopt Resolution No.____________.
Environmental Management
9. RESOLUTION NO.____________ - TERMINATION OF SUBRECIPIENT AGREEMENT NO. 16-3447 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND EVERPORT TERMINAL SERVICES AND APPROVAL OF A MULTIPARTY AGREEMENT AMONG THE CITY OF LOS ANGELES HARBOR DEPARTMENT, EVERPORT TERMINAL SERVICES INC., BYD MOTORS INC., CAPACITY OF TEXAS, INC., AND CLEAN ENERGY
Transmittal 1
Summary: Staff requests the Board of Harbor Commissioners (Board) terminate Subrecipient Agreement No. 16-3447 between the City of Los Angeles Harbor Department (Harbor Department) and Everport, and in its place approve a Multiparty Agreement among the Harbor Department, Everport Terminal Services Inc. (Everport), BYD Motors Inc. (BYD), Capacity of Texas, Inc. (Capacity), and Clean Energy Fuels (Clean Energy). On December 15, 2016, the Board accepted a California Energy Commission (CEC) grant to fund a project (Project) to design, develop, and deliver five battery electric BYD zero-emission yard tractors and 20 liquefied natural gas (LNG) Capacity near-zero-emission yard tractors to Everport, the demonstration partner. At the time, the Board also approved Subrecipient Agreement No. 16-3447 between the Harbor Department and Everport to administer the Project. BYD, Capacity and Clean Energy would serve as contractors to Everport under their own separate contract. In recent months, CEC staff has requested that the Harbor Department designate BYD and Capacity as subrecipients in the CEC grant to facilitate direct payments to these project participants. Additionally, CEC suggested that Clean Energy also be designated as subrecipient since they will be providing cost share through the provision of the LNG mobile fueling unit to support the Project. To accomplish this, the proposed Multiparty Agreement is needed to replace Subrecipient Agreement No. 16-3447. With the exception of a CEC-approved substitution of a BYD yard tractor for the initially-proposed retrofit of one Balqon yard tractor, the scope and term of the Project remains 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 III Class 6 of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) terminate Subrecipient Agreement No. 16-3447 between the City of Los Angeles Harbor Department and Everport Terminal Services; (3) approve a Multiparty Agreement among the City of Los Angeles Harbor Department and Everport Terminal Services Inc., BYD Motors Inc., Capacity of Texas, Inc., and Clean Energy to implement the Advanced Yard Tractor Deployment Project for a term of three years; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Multiparty Agreement with Everport Terminal Services Inc., BYD Motors Inc., Capacity of Texas, Inc., and Clean Energy for and on behalf of the Board; (5) authorize the Executive Director to terminate Subrecipient Agreement No. 16-3447 between the City of Los Angeles Harbor Department and Everport Terminal Services; and (6) adopt Resolution No.____________.
CLOSED SESSION
J. Closed Session Items
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Robert Childress v. City of Los Angeles, et al., Los Angeles Superior Court
Case No. BC631268
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Anthony Espinoza v. City of Los Angeles, et al., Los Angeles Superior
Court Case No. BC631685
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Cheryl Morris v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BC552974
4. 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 (one (1) case).
5. 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).
K. Adjournment