Harbor Commission

Regular Agenda - February 1, 2018

REGULAR MEETING AGENDA
THURSDAY, FEBRUARY 1, 2018 AT 8:30 A.M.

Board of Harbor Commissioners
President, Ambassador Vilma S. Martinez
Vice President David Arian
Commissioner Lucia Moreno-Linares
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

1. Audit Committee Meeting of January 25, 2018

G. Approval of the Minutes

H. Presentation

I. Level I Coastal Development Permit Report

Transmittal 1

The Executive Director has approved one Level I CDP:

CDP No. 18-03 Valero - Installation of Fire Suppression System

J. Board Reports of the Executive Director

Consent Items (1 & 2)

Port Pilots

1. RESOLUTION NO.____________ - FIRST AMENDMENT TO CONTRACT KNC NO. 80300038 BETWEEN AND AMONG THE CITY OF LOS ANGELES HARBOR DEPARTMENT, KONGSBERG NORCONTROL IT AS, MARINE EXCHANGE OF SOUTHERN CALIFORNIA AND JACOBSEN PILOT SERVICE, INC. FOR MAINTENANCE AND SUPPORT SERVICES FOR THE VESSEL TRACKING SYSTEM

Transmittal 1

Summary: Staff requests the Board of Harbor Commissioners (Board) to ratify and approve a First Amendment (First Amendment) to Contract KNC No. 80300038 between and among the City of Los Angeles Harbor Department (Harbor Department), Kongsberg Norcontrol IT AS (Kongsberg), Marine Exchange of Southern California (Marine Exchange) and Jacobsen Pilot Service, Inc. (JPS) for maintenance and support services of the Kongsberg Vessel Tracking System (VTS). The VTS is a single system from Kongsberg that is used by the Harbor Department, Marine Exchange and JPS to help improve safety and efficiency of port operations by providing situational awareness of vessel movements in the San Pedro Bay port complex. The VTS is a proprietary system that only Kongsberg can maintain and support. Contract KNC No. 80300038 is a five-year contract for VTS maintenance and support that has existed since June 1, 2015, however, the contract was only between Kongsberg as VTS supplier and the Marine Exchange as Customer. The proposed First Amendment will amend Contract KNC No. 80300038 to add the Harbor Department and JPS, thereby including all parties that use and maintain the VTS. The proposed First Amendment also clarifies existing terms and conditions of Contract KNC No. 80300038 to comply with City of Los Angeles requirements. Contract KNC No. 80300038 includes a one-year option to extend, followed by continuing one-year options on every anniversary of the commencement date. However, staff requests in this Resolution, the Board approve the five-year term plus up to five one-year options for a total term of up to ten years. The Harbor Department would not exercise further options without further Board and City Council approvals. Board ratification is necessary because the Harbor Department has received and paid for VTS services in the amount of $342,356 since June 1, 2015. City Council approval and ratification is also required for the ten-year term, inclusive of options, under Charter Section 373 and Administrative Code Section 10.5. The Harbor Department's share of the proposed Agreement is estimated to be up to $449,856 over the initial five-year term, inclusive of payments already made, and is estimated to be up to $585,000 over the five years of options. The proposed First Amendment includes a provision for the Executive Director to increase the not-to-exceed amount by up to an additional $150,000 in the aggregate for unanticipated changes over the entire ten-year term. Kongsberg is headquartered in Horten, Norway. Payment of the Harbor Department's share of the expenditures under the proposed 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 administratively 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 Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (3) find that the proposed First Amendment qualifies for award on a sole source basis as a contract for the performance of professional, technical and special services of a temporary or occasional character for which competitive bidding is not practicable or advantageous, pursuant to Los Angeles City Charter, Section 371(e)(2) and Los Angeles Administrative Code Section 10.15(a)(2); (4) ratify and approve the First Amendment between and among the Harbor Department, Kongsberg, Marine Exchange and JPS for a five-year term, from June 1, 2015 to May 31, 2020, with five one-year options to extend the term to an aggregate of ten years; for an amount not-toÂexceed $692,500, and authorize the Executive Director to increase the not-to-exceed amount by up to an additional $150,000 in the aggregate for unanticipated changes; (5) direct the Board Secretary to transmit the Agreement to the Los Angeles City Council for approval and ratification pursuant to Section 373 of the Charter of the City of Los Angeles and Section 10.5 of the Los Angeles Administrative Code; (6) authorize the Executive Director to execute and the Board Secretary to attest said First Amendment, upon approval by the City Council; and (7) adopt Resolution No.____________.

Information Technology

2. RESOLUTION NO.____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND DAILEY-WELLS COMMUNICATIONS, INC. FOR PORT POLICE HARRIS RADIO SYSTEM SUPPORT

Transmittal 1
Transmittal 2

Summary: Staff is requesting approval to enter into an Agreement with Dailey-Wells Communications, Inc. (Dailey-Wells) to provide maintenance and support services twenty-four hours per day, seven days a week (24x7) for the City of Los Angeles Harbor Department (Harbor Department) Harris Radio System and the Harris portion of the Mobile Data Computer Network (Harris System). The proposed Agreement is for a term of three years and a not-to-exceed compensation amount of $949,109. The recommendation to select Dailey-Wells is based on a competitive Request for Proposal (RFP) process performed by the Harbor Department. The proposed Agreement with Dailey-Wells is one of three agreements with the selected proposers from the RFP. The second agreement is with Knight Communications, Inc. for overall Port Police IT Systems, which the Board of Harbor Commissioners (Board) approved at its January 11, 2018 meeting. The third agreement, which is limited to vendor-specific system support, will be presented at a future Board meeting for consideration. Dailey-Wells is a certified Local Business Enterprise. Dailey-Wells is headquartered in San Antonio, Texas, with a local office in Los Angeles, California. Expenditures under the proposed Agreement are the financial responsibility of the Harbor Department.

Regular Items (3 - 6)

Contracts and Purchasing

3. RESOLUTION NO.____________ - LOCAL BUSINESS PREFERENCE PROGRAM

Summary: Staff requests that the Board of Harbor Commissioners (Board) extend the Local Business Preference Program (LBPP) in its entirety. Any financial impact from the LBPP is the responsibility of the Harbor Department.

Waterfront & Commercial Real Estate

4. RESOLUTION NO.____________ - ORDER APPROVING COMPENSATION RESET UNDER PERMIT NO. 708 WITH KINDER MORGAN TANK STORAGE TERMINALS, LLC

Transmittal 1
Transmittal 2

Summary: Staff requests approval of the compensation reset under Permit No. 708 (P708) with Kinder Morgan Tank Storage Terminals, LLC (Kinder) for the five-year period of April 14, 2018, to April 13, 2023. P708 grants Kinder property at Berths 118-119 for the construction, operation, modification, and maintenance of a marine hydrocarbon terminal and related uses. P708 has a 35-year term, effective April 14, 1988, through April 13, 2023. The current five-year compensation period began on April 14, 2013, and ends on April 13, 2018. Kinder is a tenant in good standing. As required by P708 and the Los Angeles City Charter Section 607(b), land and water rental compensation for Kinder must be adjusted for the five-year period of April 14, 2018, through April 13, 2023. The proposed compensation is $1,750,602, an increase of $492,044.72 per year. All remaining terms and conditions of P708 shall remain the same. Current compensation is $1,258,557.28 per year or $314,639.32 per quarter, based on the Second Amendment approved on August 23, 2017, for the period of April 14, 2017 through April 13, 2018.

Waterfront & Commercial Real Estate

5. RESOLUTION NO.____________ - ORDER APPROVING COMPENSATION RESET UNDER PERMIT NO. 634 WITH SHELL OIL COMPANY

Transmittal 1
Transmittal 2

Summary: Staff requests approval of the compensation reset under Permit No. 634 (P634) with Shell Oil Company (Shell) for the five-year period of February 12, 2018, to February 11, 2023. P634 grants Shell property at Berths 167-169 for the construction, operation, modification, and maintenance of a marine hydrocarbon terminal and related uses. Permit No. 634 has a 35-year term, effective February 12, 1988, through February 11, 2023. The current five-year compensation period began on February 12, 2013 and ends on February 11, 2018. Shell is a tenant in good standing. As required by P634 and the Los Angeles City Charter Section 607(b), proposed rental compensation for Shell must be adjusted for the five-year period of February 12, 2018, through February 11, 2023. The proposed compensation is $1,589,160, an increase of $437,019 per year. All remaining terms and conditions of P634 shall remain the same. Current compensation is $1,152,141 per year or $288,035.25 per quarter, based on the Order No. 13-7126 approved on May 2, 2013, for the period of February 12, 2018, through February 11, 2023.

Cargo & Industrial Real Estate

6. RESOLUTION NO.____________ - APPROVE SUCCESSOR PERMIT WITH PRAXAIR, INC. TO OPERATE AND MAINTAIN AN AIR SEPARATION PLANT IN EAST WILMINGTON

Transmittal 1
Transmittal 2

Summary: Staff requests approval of a new term Permit between the City of Los Angeles Harbor Department (Harbor Department) and Praxair, Inc. (Praxair) to replace Lease No. 88, a 50-year term lease. Praxair currently operates and maintains an air separation facility and several supply pipelines at 2300 E. Pacific Coast Highway in East Wilmington. This facility separates gases from the ambient air and individually separates the elements (such as nitrogen and oxygen) so that they can be used for specific industrial purposes. The gas plant supplies the local refineries with industrial gases that are essential to the refining process. The proposed replacement Permit is for a term of ten years with two options to extend the Permit ten years each, for a total potential term of 30 years. Annual revenue under the proposed Permit will be $1,063,250.76 per year with annual Consumer Price Index (CPI) based adjustments.

Recommendation: Board resolve to (1) find that the proposed action is categorically 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 proposed Permit with Praxair, Inc.; (3) direct the Board Secretary to transmit the Permit 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 Permit upon approval by City Council; and (5) 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

Fast Lane Transportation, Inc. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0300, including intervention by City of Carson

Consolidated with:

California Cartage Company, Inc., et al. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0311

City of Long Beach v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0312

Coalition for a Safe Environment, et al. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0308

East Yard Communities for Environmental Justice, et al. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0309

Long Beach Unified School District v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0310

South Coast Air Quality Management District v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0313

L. Adjournment

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