Harbor Commission

Board of Harbor Commissioners

President Jaime L. Lee
Vice President David Arian
Commissioner Lucia Moreno-Linares
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick

CONVENE IN MEMORY OF OSCAR INSONG
 
ORDER OF BUSINESS

A. OPEN SESSION

B. Executive Director Remarks  

C. Comments from the Public on Non-Agenda Items 
               
D. Report from the Neighborhood Council Representatives – An opportunity for a Neighborhood Council to present a Resolution or Motion filed with the Los Angeles Harbor Department to be presented to the Board as it relates to any agenda item being considered or under the purview of the Harbor Department.
 
E. Reports of the Commissioners

F. Board Committee Reports

Audit Committee Meeting of August 23, 2018
 
G. Approval of the Minutes

Special Meeting of August 23, 2018
 
H. Presentation

2017 Emissions Inventory
 
I. Level I Coastal Development Permit
 
J. Board Reports of the Executive Director
   
1.       RESOLUTION NO.____________ - APPROVE THIRD AMENDMENT TO AGREEMENT NO. 13-3112 WITH PORTS AMERICA CRUISE, INC.

Transmittal 1

Transmittal 2
 
Summary: Staff requests approval of the Third Amendment to Operating Agreement No. 13-3112 (Agreement) with Ports America Cruise, Inc. (Ports America) modifying the Consumer Price Index (CPI) provision effective May 7, 2018.  The index specified in the Agreement has been discontinued by the Bureau of Labor Statistics, and a new index now needs to be specified.  All other terms and conditions of the Agreement remain the same. 
 
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) approve the Third Amendment to Operating Agreement No. 13-3112 modifying the CPI provision effective May 7, 2018; (3) direct the Board Secretary to transmit the Third Amendment to Agreement 13-3112 to the City Council for approval pursuant to Charter Section 606 of the Los Angeles City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Third Amendment to Operating Agreement No. 13-3112 upon approval by City Council; and (5) adopt Resolution No.____________.
   
2.       RESOLUTION NO.___________ - APPROVAL OF FIRST AMENDMENT TO FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 2647 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND SONY ELECTRONICS INC., FTZ 202 SUBZONE SITE E

Transmittal 1​

Transmittal 2

Transmittal 3
 
Summary: Staff requests approval of the First Amendment to Foreign-Trade Zone (FTZ) Operating Agreement No. 2647 (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Sony Electronics Inc. (SONY), to continue operating its warehouse within FTZ 202, Subzone Site E, located at 2201 E. Carson Street, Carson, California 90810. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. SONY’s current FTZ Operating Agreement No. 2647 will expire on November 30, 2018. The term of the Agreement is ten years with two, five-year renewal options. SONY  requests to continue operating its warehouse as an FTZ warehouse. The Harbor Department needs to execute the First Amendment to extend the Agreement, as required by the FTZ Board. Subzone Site E consists of 521,856 square feet of warehouse and office space on 21.47 acres located approximately 10 miles from the Port of Los Angeles. SONY will operate its warehouse under FTZ procedures as a single-usage site. This proposed First Amendment will not require funding by the Harbor Department. If the proposed amendment is approved, the Harbor Department will receive $10,000 annually from SONY (per FTZ Tariff No. 2).
 
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) approve the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 2647 between the City of Los Angeles Harbor Department and Sony Electronics Inc.; (3) direct the Board Secretary to transmit the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 2647 to the Los Angeles City Council for approval pursuant to Section 373 of the Los Angeles City Charter 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 First Amendment to Foreign-Trade Zone Operating Agreement No. 2647; and (5) adopt Resolution No.___________.
   
3.       RESOLUTION NO.____________ - PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND WEST PUBLISHING CORPORATION

Transmittal 1​
 
Summary: The Office of the City Attorney (Office) requests that the Board of Harbor Commissioners (Board) approve a professional services agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and West Publishing Corporation (Westlaw) for computer assisted legal research services.  The Agreement is for a term of three (3) years for an amount not to exceed $103,848. The Harbor Department is financially responsible for payment for legal research services rendered under the proposed Agreement.
 
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) approve a Professional Services Agreement with West Publishing Corporation in the amount of $103,848 for a total Agreement term not to exceed three (3) years; (3) authorize the Executive Director and Board Secretary to execute and attest to the Agreement; and (4) adopt Resolution No.___________.
   
4.      RESOLUTION NO.___________ - APPROVAL OF AN EXTENSION TO ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY’S DISPATCHING AGREEMENT AND POLICE AND SECURITY SERVICES AGREEMENT

Transmittal 1​
 
Summary: Staff requests that the Board of Harbor Commissioners adopt a Resolution approving and providing mutual agreement to the terms of amendments (Amendments) to the Alameda Corridor Transportation Authority’s (ACTA) Dispatching Agreement, and the ACTA Police and Security Services Agreement, both dated January 30, 2002 (Agreements). The Agreements expire on October 14, 2018, and the Amendments would extend the terms of these Agreements by six months through April 14, 2019. Staff does not anticipate any financial impact to the Harbor Department if the Amendments are approved.
 
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 terms of the Amendment which consists of an extension to the term of the Alameda Corridor Transportation Authority’s (ACTA) Dispatching Agreement for up to an additional six months ending on April 14, 2019; (3) approve and provide mutual agreement to the terms of the Amendment which consists of an extension to the term of the ACTA Police and Security Services Agreement for up to an additional six months ending on April 14, 2019; (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.___________.
   
5.       RESOLUTION NO.______________ - APPROVE SIXTH AMENDMENT WITH PERMIT NO. 560 WITH VOPAK TERMINAL LOS ANGELES, INC.

Transmittal 1​

Transmittal 2
 
Summary: Staff requests approval of the Sixth Amendment to Permit No. 560 with Vopak Terminal Los Angeles, Inc. (Vopak).  Vopak operates a marine oil terminal at Berths 187-191 in Wilmington, which is subject to the Marine Oil Terminal & Maintenance Standards (MOTEMS).  The proposed Sixth Amendment will shift the severe and major defect repairs identified in a prior MOTEMS audit to Vopak in consideration of waiving wharfage charges for 30 months.  Vopak will have 18 months to substantially complete the repairs.  Repair of the severe and major defects in the existing wharf is required by the California State Lands Commission, which has oversight responsibilities over the marine oil terminals.  Shifting of the repair responsibilities to Vopak will limit the City of Los Angeles Harbor Department’s (Harbor Department) financial risk and improve Vopak’s ability to maintain business during construction.  Waiving wharfage charges will reduce revenues which would have otherwise been due to the Harbor Department. The waiver of wharfage charges is offset by construction cost savings and potential business reduction that would have occurred if the Harbor Department performed the work.  Based upon annual wharfage of $3,592,174 (approximately $299,348 per month on average) paid by Vopak in the 2017 compensation year, waiving 30 months of wharfage is anticipated to cost the Harbor Department $8,980,440 in foregone wharfage revenues.  The severe and major defect repairs are part of the Harbor Department’s regular maintenance responsibilities and are separate from the wharf upgrade required by MOTEMS.
 
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined 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; (2) approve the the Sixth Amendment to Permit No. 560 with the Vopak Terminal Los Angeles, Inc.; (3) direct the Board Secretary to transmit the Sixth Amendment for Permit 560 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 Sixth Amendment upon Board approval contingent upon approval by City Council; and (5) adopt Resolution No.___________.
   
6.       RESOLUTION NO.___________ - APPROVE FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING (AGREEMENT NO. 16-3442) WITH ALTASEA AT THE PORT OF LOS ANGELES AND FIRST AMENDMENT TO U.S. DEPARTMENT OF COMMERCE ECONOMIC DEVELOPMENT ADMINISTRATION GRANT AWARD NO. 07-01-07315

Transmittal 1​

Transmittal 2

Transmittal 3
 
Summary: Staff requests approval of the First Amendment to the Memorandum of Understanding (MOU First Amendment) with AltaSea at the Port of Los Angeles (AltaSea), Agreement No. 16-3442.  In addition, staff requests approval of a First Amendment to the U.S. Department of Commerce Economic Development Administration Award No. 07-01-07315 (EDA Grant Award First Amendment). The MOU First Amendment would incorporate the EDA Grant Award First Amendment into Agreement No. 16-3442.  Additionally the MOU First Amendment would provide delegated authority to the Executive Director to approve additional amendments to the EDA Grant Award pertaining to scheduling modifications within AltaSea’s Business Hub Infrastructure Project (Project) timeframe and/or re-allocation of the $3,000,000 budget within the authorized Project scope of work, and incorporation of such amendments into Agreement No. 13-3442. Staff requests approval of the EDA Grant Award First Amendment to extend the construction start time for the Project from September 28, 2018 to September+28, 2019, with the construction completion date remaining the same at September+28, 2020. The Harbor Department’s financial responsibility is limited to staff time for the review of documents as co-recipient of the EDA Grant Award.
 
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed actions are 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) approve the First Amendment to Agreement No. 16-3442 with AltaSea at the Port of Los Angeles, including delegated authority to the Executive Director for future amendment approvals; (3) approve the First Amendment to the U.S. Department of Commerce Economic Development Administration Award No. 07-01-07315; (4) direct the Board Secretary to transmit both First Amendments to the City Council for approval pursuant to Charter Section 373 of the Los Angeles City Charter and Section 10.5(a) of the Los Angeles Administrative Code; (5) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to Agreement No. 16-3442 upon approval by City Council; (6) authorize the Executive Director or designee to execute the First Amendment to the U.S. Department of Commerce Economic Development Administration Award No. 07-01-07315 upon approval by City Council; and (7) adopt Resolution No.____________.
   
7.       RESOLUTION NO.___________ - SECOND AMENDMENT TO GRANT AGREEMENT NO. 16-3395 WITH THE CALIFORNIA AIR RESOURCES BOARD AND SECOND AMENDMENT TO SUBRECIPIENT AGREEMENT NO. 16-3396 WITH PASHA STEVEDORING & TERMINALS L.P. FOR THE IMPLEMENTATION OF ZERO AND NEAR-ZERO EMISSION TECHNOLOGIES

Transmittal 1​

Transmittal 2

Transmittal 3
 
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve the proposed Second Amendment to Agreement No. 16-3395 with the California Air Resources Board (CARB) and the proposed Second Amendment to Subrecipient Agreement No. 16-3396 with Pasha Stevedoring & Terminals L.P. (Pasha or Subrecipient) to extend the Green Omni Terminal Project (Project) by one year, reallocate grant funding, modify Project milestones, and modify the disbursement schedule.  No additional funds are being requested.
 
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) approve the Second Amendment to Grant Agreement No. 16-3395 with the California Air Resources Board to add time, change project milestones and the disbursement schedule; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Second Amendment to Agreement No. 16-3395 with the California Air Resources Board for and on behalf of the Board; (4) approve the Second Amendment to Subrecipient Agreement No. 16-3396 with Pasha Stevedoring & Terminals L.P. to add time, modify project milestones  disbursements schedule, and increase the amount by $88,000 for a total not-to-exceed amount of $14,510,400; (5) direct the Board Secretary to transmit the Second Amendment to Subrecipient Agreement No. 16-3396 to the City Council for approval pursuant to Charter Section 373 and Administrative Code Section 10.5; (6) authorize the Executive Director to execute and the Board Secretary to attest to said Second Amendment to Subrecipient Agreement No. 16-3396 with Pasha Stevedoring & Terminals L.P. for and on behalf of the Board upon approval of City Council; and (7) adopt Resolution No.___________.
   
8.       RESOLUTION NO.____________ - ADOPTION OF THE FINAL INITIAL STUDY/MITIGATED NEGATIVE DECLARATION AND APPROVAL OF THE SO CAL SHIP SERVICES PERMIT RENEWAL AT 971 SOUTH SEASIDE AVENUE PROJECT (LOS ANGELES HARBOR DEPARTMENT APPLICATION FOR PORT PERMIT NO. 161003-143; STATE CLEARINGHOUSE NO. 2018061043)

Transmittal 1​
 
Summary: Staff requests that the Board of Harbor Commissioners (Board) adopt the Final Initial Study/Mitigated Negative Declaration (IS/MND) for the proposed So Cal Ship Services Permit Renewal at 971 South Seaside Avenue Project (Project) along with comments and responses to comments, and approve the proposed Project as described in the Final IS/MND. The proposed Project includes a 10-year lease extension, with up to two five-year lease extensions/renewal options, or a potential maximum of 20 years.  Additional project elements include an approximate one-acre parking lot, trenching and installation of utilities, installation of security fencing and lighting, replacement of an existing utility cover, and continual maintenance and repair of the site.  The IS/MND assessed the potential installation of a pedestal crane along the northern portion of the wharf and shore power along the southern portion of the wharf, which could occur during the term of this permit.  The proposed Project includes facilities and sites identified on the State of California Hazardous Waste and Substances Site List (also known as the Cortese List, compiled pursuant to California Government Code 65962.5).  Payment of the costs associated with the Final IS/MND are the responsibility of the City of Los Angeles Harbor Department (Harbor Department).
 
Recommendation: Board resolve to (1) find that, pursuant to the State California Environmental Quality Act Guidelines (CEQA) Section 15074, the Final Initial Study/Mitigated Negative Declaration for the So Cal Ship Services Permit Renewal at 971 South Seaside Avenue Project, (a) has been completed in compliance with the State CEQA Guidelines and the Los Angeles City CEQA Guidelines; (b) was presented to the Board for review and was reviewed and considered by the Board prior to approving the So Cal Ship Services Permit Renewal at 971 South Seaside Avenue 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/Mitigated Negative Declaration for the So Cal Ship Services Permit Renewal at 971 South Seaside Avenue 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/Mitigated 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 Mitigation Monitoring and Reporting Program (MMRP) contained in the Final Initial Study/Mitigated Negative Declaration as required by Public Resources Code Section 21081.6 and State California
 
Environmental Quality Act Guidelines Section 15074.  The MMRP is designed to ensure compliance with the mitigation measures adopted to mitigate or avoid significant effects on the environment, and identifies the responsibilities of the City of Los Angeles Harbor Department as lead agency and other applicable entities, to monitor and verify project compliance with those mitigation measures and conditions of project approval; (5) adopt the Final Initial Study/Mitigated Negative Declaration for the So Cal Ship Services Permit Renewal at 971 South Seaside Avenue Project; (6) direct the Cargo and Industrial Real Estate Division to incorporate by reference the Final Initial Study/Mitigated Negative Declaration (IS/MND), mitigation measures, and the Mitigation Monitoring Reporting Program contained in the Final IS/MND into any and all permits, lease agreements, or assignments encompassed in the approved So Cal Ship Services Permit Renewal at 971 South Seaside Avenue Project; (7) authorize the Environmental Management Division to file the Notice of Determination for the So Cal Ship Services Permit Renewal at 971 South Seaside Avenue Project with the Los Angeles City and County Clerks; and (8) adopt Resolution No.___________.
   
9.       RESOLUTION NO.___________ - AMENDMENT TO THE 2018 ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY’S MAINTENANCE OF WAY (MOW) AND OPERATIONS AND MAINTENANCE (O&M) BUDGETS FOR ADDITIONAL EXPENDITURES AND RESTORATION OF CONTINGENCY AMOUNT

Transmittal 1​
 
Summary: Staff requests the Board of Harbor Commissioners adopt a Resolution accepting and providing mutual agreement to an amendment (Amendment) to the 2018 Alameda Corridor Transportation Authority’s (ACTA) Maintenance of Way (MOW) and Operations and Maintenance (O&M) Budgets. The Amendment will increase the 2018 ACTA MOW and O&M Budgets by $390,000 in order to fund an unexpected increase in costs associated with ladder and fencing repairs, graffiti removal, illegal dumping, Automatic Equipment Identification reader upgrades as well as the design and support of a Positive Train Control system.  Staff does not anticipate that the Harbor Department will be financially impacted in FY 2019 if the Amendment were to be approved as the fees collected by ACTA are expected to cover the funding increase being requested.
 
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 Amendment to the 2018 Alameda Corridor Transportation Authority’s (ACTA) Maintenance of Way (MOW) and Operations and Maintenance (O&M) Budgets for additional expenditures ($390,000) and restoration of contingency amount to its original full value of $200,000; (3) 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 (4) 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 consolidated with Case Nos. CIVMSN14-0308, CIVMSN14-0309, CIVMSN14-0310, CIVMSN14-0311, CIVMSN14-0312, and CIVMSN14-0313
 
2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
James Edwin Strachan v. City of Los Angeles, Los Angeles Superior Court Case No. BC659318
 
3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Pasha Stevedoring & Terminals, L.P. v. City of Los Angeles, Los Angeles Superior Court Case No. BC634447
 
 
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 case)
 
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
 
Provide instructions to its real estate negotiators with respect to a proposed permit renewal with Pasha Stevedoring & Terminals LP:
 
Property:                     Berths 174-180, Wilmington, CA
 
City Negotiator:            Jack Hedge
 
Tenant Negotiator:       Jay Bowden
 
Negotiating Parties:      City and Pasha Stevedoring & Terminals LP
 
Under Negotiation:       Price and Terms
 
 
L. Adjournment