Harbor Commission

Transmittal 2

Summary: Staff requests approval of a compensation reset under Permit No. 870 (P870) with Southern California Gas Company (SCGC) for the five-year period of October 25, 2017 through October 24, 2022. P870 has a 20-year term from October 25, 2012 to October 24, 2032, with compensation to be reset every five years. P870 grants SCGC the use of 3,331 square feet (s.f.) of subsurface land located in East Wilmington for maintenance and operation of an existing pipeline. Effective October 25, 2017, annual compensation for the first year of the reset period will be $4,996.50, with subsequent annual Consumer Price Index (CPI) adjustments.

Transmittal 1

Summary: Staff requests approval of a Memorandum of Understanding (MOU) between the City of Los Angeles Harbor Department (Harbor Department), and the Alameda Corridor Transportation Authority (ACTA), acting as an agent for the State of California Department of Transportation (DOT), to permit the temporary relocation of a peregrine falcon nesting habitat as part of the continued replacement of the State’s Schuyler Heim Bridge.  The previous MOU (Agreement No. 10-2933) allowed the State to relocate a peregrine nesting habitat that was located on the Schuyler Heim Bridge during construction of the new bridge to the Badger Avenue Bridge.  Since the previous MOU has expired and construction of the new bridge is continuing past the previously anticipated completion date, a new MOU is needed to allow continued relocation of the peregrine falcon nesting habitat as well as necessary access to Harbor Department property to accomplish the relocation.  The nest will be relocated back to the new Schuyler Heim Bridge once construction is complete.  The current estimated date for completion is December 2021.  There is no financial obligation associated with this MOU.

Summary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and California Steel Industries, Inc. (CSI) to operate its facility within FTZ 202, Site 55, located at 14000 San Bernardino, Fontana, California 92335. On October 11, 2018 the Foreign-Trade Zones Board approved a minor boundary modification of Foreign-Trade Zone 202 under the alternative framework to establishing a usage-driven Site 55 for the sole use of CSI. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ site operators to oversee their FTZ operations. Site 55 is a steel production facility, warehouse and office building totaling approximately 360.70 acres located approximately 65 miles from the Port of Los Angeles. CSI will be operating its facility 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. If the proposed Agreement is approved, the Harbor Department will receive $10,000 annually from CSI (per FTZ Tariff No. 2).

Summary: Staff requests the Board of Harbor Commissioners accept and enter into Grant Award, EMW-2018-PU-00469, with the United States Department of Homeland Security (DHS), Federal Emergency Management Agency (FEMA), for the reimbursement of funds allocated to the Los Angeles Harbor Department (Harbor Department) under the Fiscal Year (FY) 2018 Port Security Grant Program (PSGP). If approved, the proposed Federal award will be in the amount of $2,114,700 with an award date of September 1, 2018. Items approved for grant reimbursement subsequent to expenditure by the Harbor Department are as follows: Security System Maintenance $937,500; Security System Expansion and Integration $937,500; and Dive and Hazmat Equipment $239,700. The award is for a three year period ending August 31, 2021. A 25% cost share is required under this FY 2018 PSGP, which will be funded by the Harbor Department. The Harbor Department’s total cost share and financial responsibility for the projects is $704,900, for a total cost of $2,819,600 for all three projects.