Harbor Commission

SPECIAL MEETING AGENDA
THURSDAY, MARCH 21, 2019 BEGINNING NO SOONER THAN 11:30 A.M. OR DIRECTLY FOLLOWING THE PUBLIC HEARING AT 8:30 A.M.

 

 
 
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 – 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
           
 
 
G.        Approval of the Minutes
 
            Regular Meeting of March 7, 2019
 
 
H.       Presentation
             
           
 

1. Level I Coastal Development Permit

 
 
J.         Special Order of the Day – Level II Non-Appealable Coastal Development Permit
   
1(a)     ISSUANCE OF A LEVEL II NON-APPEALABLE COASTAL DEVELOPMENT PERMIT (NO. 19-02) TO THE CITY OF LOS ANGELES HARBOR DEPARTMENT FOR THE BERTHS 238-239 [PBF ENERGY] MARINE OIL TERMINAL WHARF IMPROVEMENTS PROJECT
 
Pursuant to the California Coastal Act of 1976, as amended and the Port of Los Angeles’ certified Port Master Plan, notice is hereby given to all interested persons and organizations that the Los Angeles Board of Harbor Commissioners will hold a public hearing to receive public comments prior to considering the following for a Coastal Development Permit.  
1(b)     RESOLUTION NO. ____________ – ISSUANCE OF A LEVEL II NON-APPEALABLE COASTAL DEVELOPMENT PERMIT (NO. 19-02) TO THE CITY OF LOS ANGELES HARBOR DEPARTMENT FOR THE BERTHS 238-239 [PBF ENERGY] MARINE OIL TERMINAL WHARF IMPROVEMENTS PROJECT

Transmittal 1
Transmittal 2
Transmittal 3
 
Summary: Staff requests approval of a Level II non-appealable Coastal Development Permit (CDP) No. 19-02 to the City of Los Angeles Harbor Department (Harbor Department) for the proposed Berths 238-239 [PBF Energy] Marine Oil Terminal Wharf Improvements Project (Project). Improvements described in the Mitigated Negative Declaration (MND) for the Berths 238-239 [PBF Energy] Marine Oil Terminal Wharf Improvement Project are included in CDP No. 19-02 (APP No. 161208-173). CDP No. 19-02 will cover the Harbor Department’s portion of the Project. The Harbor Department is financially responsible for the work covered by CDP No. 19-02 as outlined in the Application for Port Permit (APP) No. 161208-173 up to $7,500,000 of the total estimated cost of $19,647,147.31. PBF Energy is responsible for the remaining cost.
 
Recommendation: Board resolve to (1) hold a public hearing for the proposed Coastal Development Permit No. 19-02, a Level II non-appealable permit; (2) find that the Director of Environmental Management has determined that the proposed action has been previously evaluated pursuant to the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(i) of the Los Angeles City CEQA Guidelines; (3) find that the proposed project conforms with the Port of Los Angeles certified Port Master Plan; (4) upon closure of the public hearing, resolve to approve the issuance of CDP No. 19-02, consistent with the project description listed on APP No. 161208-173, and direct the Director of Planning and Strategy to execute and issue said permit on behalf of and as the designee of the Executive Director; and (5) adopt Resolution No.____________.
 
K.        Board Reports of the Executive Director
 
 
Consent Items (2 – 4)
 
   
2.       RESOLUTION NO. ____________ - APPROVAL OF THIRD AMENDMENT TO FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT NO. 2340 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND CUSTOMS AIR WAREHOUSE, INC., FTZ 202, SITE 2A

Transmittal 1
Transmittal 2
Transmittal 3
 
Summary: Staff requests the approval of a Third Amendment to Foreign-Trade Zone (FTZ) Operating Agreement No. 2340 (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Customs Air Warehouse Inc., (Customs Air) to continue operating its warehouse within FTZ 202, Site 2A, located at 5540 West 104th Street, Los Angeles, California 90045. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ site operators to oversee their FTZ operations. Customs Air’s current Agreement will expire on June 22, 2019.  The Third Amendment will extend the term of the Agreement by five years. Customs Air has requested to continue operating its warehouse as an FTZ warehouse.  The Harbor Department needs to execute the Third Amendment to extend the Agreement, as required by the FTZ Board. Site 2A consists of 37,000 square feet of warehouse and office space on 1.5 acres. Customs Air will operate its warehouse under FTZ procedures as a multi-usage site. This proposed Third Amendment will not require funding by the Harbor Department. If the proposed amendment is approved, the Harbor Department will receive $7,750 annually from Customs Air (per FTZ Tariff No.2).
 
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) approve the proposed Third Amendment to Foreign-Trade Zone Operating Agreement No. 2340 between the City of Los Angeles Harbor Department and Customs Air Warehouse Inc.; (3) direct the Board Secretary to transmit the proposed Third Amendment of Foreign-Trade Zone Operating Agreement No. 2340 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 Third Amendment of Foreign-Trade Zone Operating Agreement No. 2340; and (5) adopt Resolution No._____________.
 
 
 
   
3.         RESOLUTION NO. _____________ - APPROVAL OF AMENDMENT NO. 1 TO AGREEMENT NO. E6966 WITH BALFOUR BEATTY INFRASTRUCTURE, INC. FOR RAIL YARD INSPECTION AND MAINTENANCE SERVICES

Transmittal 1
Transmittal 2
 
Summary: Staff requests approval of Amendment No. 1 to Agreement No. E6966 between the City of Los Angeles Harbor Department (Harbor Department) and Balfour Beatty Infrastructure, Inc. (Balfour) to change the term from a one year agreement to a three year agreement, an increase of two years, and to increase the total compensation from $85,000 to $255,000, an increase of $170,000. The Harbor Department is financially responsible for expenses under this agreement.
 
Recommendation: Board resolve to (1) find that in accordance with Los Angeles City Charter Section 1022, the services required can be performed more feasibly by an outside contractor than by City employees; (2) 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; (3) approve Amendment No. 1 to Agreement No. E6966; (4) authorize the Executive Director and Board Secretary to execute and attest to said amendment for and on behalf of the Board; and (5) adopt Resolution No.____________.
 
   
4.         RESOLUTION NO. ____________ - APPROVAL OF AN EXTENSION TO ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY’S DISPATCHING AGREEMENT AND POLICE AND SECURITY SERVICES AGREEMENT
 
Summary: Staff requests that the Board of Harbor Commissioners (Board) 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 April 14, 2019, and the Amendments would extend the terms of these Agreements by one year through April 14, 2020. Staff does not anticipate any financial impact to the City of Los Angeles Harbor Department (Harbor Department) if the Amendments are approved.
 
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 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 one year ending on April 14, 2020; (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 one year ending on April 14, 2020; (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.____________.
 
Regular Items (5 – 8)
   
5.        RESOLUTION NO. _________________ - APPROVAL OF HARBOR COMMUNITY BENEFIT FOUNDATION 2019 OPERATING BUDGET

Transmittal 1
Transmittal 2
 
Summary: The Harbor Community Benefit Foundation (HCBF) requests that the Board of Harbor Commissioners (Board) approve its proposed 2019 Operating Budget of $298,240 for the 2019 calendar year and transfer funding in the amount of $99,601.84 from the Port Community Mitigation Trust Fund (PCMTF). The HCBF is a non-profit organization that receives funding from the PCMTF established by the City of Los Angeles Harbor Department (Harbor Department) and provides grant administration for the PCMTF, subject to Board approval of budget, grants and PCMTF fund transfers in accordance with the TraPac Memorandum of Understanding (TraPac MOU) and Operating Agreement of the TraPac MOU (Operating Agreement). On January 25, 2019, HCBF’s Board of Directors approved the proposed operating budget for the 2019 calendar year and is requesting Board approval and transfer of funds from the PCMTF. In accordance with the TraPac MOU and Operating Agreement, HCBF has provided the required financial reports and program documentation in support of its budget request.  Upon approval by the Board, the Harbor Department will authorize JP Morgan Private Bank (JPMPB) to transfer a lump sum amount of $99,601.84 from the PCMTF to HCBF.  The $99,601.84 will be supplemented by HCBF’s projected 2018 surplus of $168,554.37, plus an additional $30,083.79 owed from the HCBF Air Quality Mitigation Fund, for a total requested 2019 Operating Budget of $298,240. Upon transfer of funds from the PCMTF, HCBF will be financially responsible for its operating budget.  Additionally, HCBF will provide the Board prior notice of any reallocation of authorized funds that exceed 10% of the total annual budget. The Harbor Department originally funded the PCMTF at its inception and has made subsequent, additional contributions based upon the volume of cargo processed at the Port of Los Angeles.  The proposed $99,601.84 transfer will be made from funds which have previously been deposited into the PCMTF, and the proposed action will not require the Harbor Department to make additional payments into the PCMTF.
 
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 Harbor Community Benefit Foundation calendar year 2019 Operating Budget of a not-to-exceed amount of $298,240, with the condition that the Harbor Community Benefit Foundation provides the Board of Harbor Commissioners prior notice to any reallocation with the Harbor Community Benefit Foundation budget that exceeds 10% of the total annual budget;  (3) approve the Harbor Community Benefit Foundation to retain the $168,554.37 surplus from the 2018 Operating Budget for the purpose of funding the current request for its 2019 Operating Budget; (4) authorize the Executive Director or designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the distribution of funds in one lump sum payment of $99,601.84 from JP Morgan Private Bank to the Harbor Community Benefit Foundation subject to the same condition set forth in Recommendation 2; and (5) adopt Resolution No.____________.
   
6.         RESOLUTION NO. _____________ – ORDER RESETTING COMPENSATION UNDER PERMIT NO. 905 WITH FISHERMAN’S PRIDE PROCESSORS, INC. dba NEPTUNE FOODS

Transmittal 1
Transmittal 2
 
Summary: Staff requests approval of an Order resetting compensation under Permit No. 905 (P905) with Fisherman’s Pride Processors, Inc. dba Neptune Foods, a California Corporation (Neptune) for the five-year period of March 27, 2019 through March 26, 2024.  P905 grants Neptune use of 188,220 square feet (s.f.) of land and building, and nonexclusive wharf area on Terminal Island for a term of ten years with two, five-year options to renew. The current monthly base rent is $23,968.86, plus percentage rent based upon the amount of fish products and other protein products processed at the facility.  Under the compensation reset Order, effective March 27, 2019, Neptune will begin paying monthly base rent of $62,112.59.  Thereafter, the base rent will be adjusted to $67,759.17 and $75,288.00 for years 2 and 3, respectively, plus an annual Consumer Price Index (CPI) escalator.  Monthly base rent will be subject to a CPI escalator in years 4 and 5.  Percentage rent terms will remain unchanged at one-half of one cent (0.005) per pound of fish products loaded across the wharf (wet fish) and one-tenth of one cent ($0.001) per pound of any other protein product processed and brought into the facility otherwise.
 
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 (f) of the Los Angeles City CEQA Guidelines; (2) approve the Order resetting compensation to Permit No. 905 with Fisherman’s Pride Processors, Inc. dba Neptune Foods; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 905; and (4) adopt Resolution No._____________ and Order No.____________.
   
7.        RESOLUTION NO. ________________ - FIRST AMENDMENT TO AMENDED AND RESTATED AGREEMENT NO. 17-3425-A BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND GENERAL ELECTRIC TRANSPORTATION PARTS, LLC FOR THE PORT OPTIMIZER PROJECT

Transmittal 1

Summary: Staff requests approval of the First Amendment to Amended and Restated Agreement No. 17-3425-A (First Amendment) with General Electric Transportation Parts, LLC (GETP) for the Port Optimizer project.  The proposed First Amendment is to continue expansion and operation of the Port Optimizer, a first-of-its-kind common user portal that provides a single information window to support enhanced maritime supply chain performance.  The proposed First Amendment includes hardware, software and services required for additional enhancements, technical hosting and support, and other core components. The proposed First Amendment will extend the term of Agreement No. 17-3425-A by three additional years, for a total of six years, and increase the not-to-exceed compensation amount by an additional $3,000,000, for a total not-to-exceed compensation amount of $16,100,420. The recommendation to select GETP for Agreement No. 17-3425-A was based on a competitive Request for Proposal (RFP) process performed by the City of Los Angeles Harbor Department (Harbor Department). Expenditures under the proposed First Amendment 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 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) approve the First Amendment to Amended and Restated Agreement No. 17-3425-A to extend the existing Agreement to six years and increase the not-to-exceed compensation amount to $16,100,420; (4) direct the Board Secretary to transmit said 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; (5) authorize the Executive Director to execute and the Board Secretary to attest the said Agreement for and on behalf of the Board; and (6) adopt Resolution No.____________.
   
8.        RESOLUTION NO._______________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES AND THE PACIFIC MARITIME ASSOCIATION ON USE OF PORT PROPERTY FOR JOINT TRAINING PROGRAM
 
Summary: Staff requests approval to enter into an agreement (Agreement) with the Pacific Maritime Association (PMA) which will enable the use of City of Los Angeles Harbor Department (Harbor Department) equipment on PMA property as part of a pilot training program jointly-developed by the Harbor Department, PMA and International Longshore and Warehouse Union (ILWU).  The pilot program will train entry-level longshore workers how to lash containers in a controlled environment, using new and innovative training curriculum and practices. Using funding provided through the High Road Training Partnership (HRTP) grant program, the Harbor Department purchased lashing poles and equipment as well as fabricated a two-story, modular walkway which will be used as part of the pilot program in order to best simulate the environment and conditions trainees will encounter on an actual ship.  The proposed Agreement will cover use, maintenance, warranties and indemnification of the lashing equipment and walkway as well as indemnification of the Harbor Department as it relates to the program. The Harbor Department will be financially responsible for maintenance costs associated with the lashing equipment and walkway if the proposed Agreement is approved.
 
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 agreement with the Pacific Maritime Association regarding use of Harbor Department equipment for a jointly developed training program; (3) authorize the Executive Director/designee to execute and the Board Secretary to attest to the Agreement with an effective date of March 18, 2019; and (4) adopt Resolution No.____________.
 

L.         Closed Session Items
 
1.   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)
 
  
M.       Adjournment