President Jaime L. Lee
Commissioner Diane L. Middleton
Commissioner Lucia Moreno-Linares
Commissioner Anthony Pirozzi, Jr.

Commissioner Edward R. Renwick


ORDER OF BUSINESS 
 

OPEN SESSION 
 

A.        Roll Call
 
CLOSED SESSION
 
B.        Closed Session Items
 
1.         CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
            (Subdivision (d)(1) of Government Code Section 54956.9
 
City of Los Angeles v. Tetra Design, Inc., et al., Los Angeles Superior Court 
Case No. NC061384
 
2.         CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
            (Subdivision (d)(1) of Government Code Section 54956.9)
 
            City of Los Angeles v. San Pedro Waterfront LLC, Los Angeles Superior Court
            Case No. 18LBUD000464
 
3.         CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
            (Subdivision (d)(1) of Government Code Section 54956.9)
 
            City of Los Angeles v. L.A. Terminals, Inc., et al., Los Angeles Superior Court
            Case No. NC061591
 
            L.A. Terminals, Inc. v. City of Los Angeles, et al., United States District Court
            Case No. 2:18-cv-06754-CAS
 
4.         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 case)
 
 
5.         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: (two cases)

 
6.         CONFERENCE WITH REAL PROPERTY NEGOTIATORS
            (Government Code Section 54956.8)
 
Provide instructions to its real estate negotiators with respect to a proposed permit with J. Trani’s Restaurant:
 
Property:                     311 E. 22^nd Street, San Pedro
 
City Negotiator:           Michael Galvin
 
Tenant Negotiator:     Jimmy Trani
 
Negotiating Parties:   City and J. Trani’s Restaurant
 
Under Negotiation:     Price and Terms
 
 
7.         CONFERENCE WITH REAL PROPERTY NEGOTIATORS
            (Government Code Section 54956.8)
 
            Provide instructions to its real estate negotiators with respect to Permit No. 915 with
San Pedro Public Market, LLC:
 
Property:                     Berths 74-83, San Pedro
 
            City Negotiator:           Michael Galvin
 
Tenant Negotiators:    Eric Johnson/Milan Radkovich
 
Negotiating Parties:   City and San Pedro Public Market, LLC
 
             Under Negotiation:     Price and Terms

8.         CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
 
City of Los Angeles v. Certain Underwriters at Lloyd’s, London and Other London Market Insurers, et al., Los Angeles Superior Court Case No. BC588876

 
 
OPEN SESSION
 
C.        Executive Director Remarks
                                                                                            
 
 
D.        Comments from the Public on Non-Agenda Items
 
                  
 
E.        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.
 
 
F.       Reports of the Commissioners
 
           
 
G.        Board Committee Reports
           
            ACTA meeting of June 13, 2019
 
            ICTF meeting of June 18, 2019
                 
 
H.        Approval of the Minutes
 
 
 
I.         Presentation
 
     Annual Compliance Report, Berths 302-305 – Chris Cannon, Director of Environmental Management
 
 
J.         Level I Coastal Development Permit
 
The Executive Director has approved two Level I Coastal Development Permits:
 
CDP No. 19-06         The Jankovich Company – A Modular Office Building, Fencing, and a Monument Sign
Transmittal 1

Transmittal 2
 
CDP No. 19-07         Innovative Terminal Services – To relocate maintenance and repair shop, operations, and utilities at 1251 New Dock Street
Transmittal 1

Transmittal 2
 
K.        Board Reports of the Executive Director
 
  Consent Items (1 - 9)
 
 

 
1.         RESOLUTION NO._____________ - APPROVE FIRST AMENDMENT TO AGREEMENT NO. E-6975 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND CALIFORNIA DINING SERVICES
Transmittal 1

Transmittal 2
 
Summary: Staff requests approval of the First Amendment to Agreement No. E-6975 with California Dining Services (Cal Dining) to extend the term of the current one-year agreement by two years, for a total term of three years. In addition, the amendment will increase the contract amount by $265,800 to cover the additional two years of expenses, for a total contract amount of $398,700. Cal Dining operates the Port Pantry Café (Port Pantry) at the Harbor Administration Building (HAB) and provides breakfast, lunch, vending machine, catering, and coffee services.  Cal Dining was selected from a Request for Proposals (RFP) for Port Pantry Operator published by the City of Los Angeles Harbor Department (Harbor Department) in April 2018. The Harbor Department is financially responsible for payments to Cal Dining.
 
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 First Amendment to Agreement No. E-6975 with California Dining Services; (3) authorize the Executive Director to execute and Board Secretary to attest to the First Amendment; and (4) adopt Resolution No.____________.

 

 
2.         RESOLUTION NO._____________ - FIRST AMENDMENT TO AGREEMENT NO. 16-3407 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND MACIAS GINI & O’CONNELL LLP TO PROVIDE FINANCIAL AUDITING AND RELATED SERVICES

Transmittal 1

Transmittal 3
 
Summary: Staff requests the approval of the First Amendment to Agreement No. 16-3407 with Macias Gini & O’Connell, LLP (MGO) to extend the term of the agreement by two (2) years, for a total Agreement term not to exceed five (5) years. MGO, a firm of independent certified public accountants, performs the annual audit of the Comprehensive Annual Financial Report (CAFR) and annual single audit of Federal major awards of the City of Los Angeles Harbor Department (Harbor Department).  In addition, MGO performs the annual financial statement audit of the Los Angeles Harbor Improvement Corporation (LAHIC) and, upon request, provides expert accounting opinions regarding significant accounting policies and other financial auditing services. The First Amendment is for a not-to-exceed amount of $266,393, including related expenses over two years. Payment of expenses incurred under the First Amendment will be 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 City of Los Angeles (City) Charter Section 1022, the proposed services are of a professional, expert, and technical nature, which can only be performed by an independent, licensed certified public accounting firm; (3) approve the proposed First Amendment to Agreement No. 16-3407 with MGO to extend the term for two (2) additional years for a not-to-exceed amount of $266,393, including related expenses; (4) authorize the Executive Director and the Secretary to execute and attest to said proposed First Amendment to Agreement No. 16-3407 for and on behalf of the Board; and (5) adopt Resolution No.______________.

 
Cargo Marketing

 
3.         RESOLUTION NO._____________ - APPROVAL OF FOREIGN-TRADE ZONE USAGE-DRIVEN GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND TOSHIBA LOGISTICS AMERICA, INC. FTZ 202, SITE 58

Transmittal 1

Transmittal 2
 
Summary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Toshiba Logistics America, Inc. (Toshiba) to operate its facility within FTZ 202, Site 58, located at 501 Burning Tree Rd., Fullerton, California 92833. On March 20, 2019, the FTZ Board approved a minor boundary modification of FTZ 202 under the alternative site framework to establish usage-driven Site 58 for the sole use of Toshiba. The Harbor Department, as the FTZ grantee, establishes Operating Agreements with FTZ site operators to oversee their FTZ operations. Site 58 is a warehouse and office building totaling approximately 3.14 acres located approximately 30 miles from the Port of Los Angeles. Toshiba will operate its facility under FTZ procedures as a single-usage site. The proposed 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 Toshiba (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 Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and Toshiba Logistics America, Inc.; (3) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating 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 proposed Foreign-Trade Zone Operating Agreement; and (5) adopt Resolution No.___________.
 
 

 
4.         RESOLUTION NO._____________ - APPROVAL OF FOREIGN-TRADE ZONE USAGE-DRIVEN GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND APEX LOGISTICS INTERNATIONAL INC.,  FTZ 202 SITE 57

Transmittal 1

Transmittal 2
 
Summary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and APEX Logistics International Inc. (APEX) to activate its facility within FTZ 202, Site 57, located at 18554 S. Susana Road, Rancho Dominguez, California 90221. On March 20, 2019, the FTZ Board approved a minor boundary modification of FTZ 202 under the alternative site framework to establish usage-driven Site 57 for APEX. The Harbor Department, as the FTZ grantee, establishes Operating Agreements with FTZ site operators to oversee their FTZ operations. Site 57 is a warehouse and office building totaling approximately 2.56 acres located approximately 15 miles from the Port of Los Angeles. APEX will operate its facility under FTZ procedures as a multi-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 $7,750 annually from APEX (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 Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and APEX Logistics International Inc.; (3) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating 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 proposed Foreign-Trade Zone Operating Agreement; and (5) adopt Resolution No.____________.
 
 

 
 
5.         RESOLUTION NO._____________ - APPROVAL OF SECOND AMENDMENT TO THE FOREIGN-TRADE ZONE USAGE-DRIVEN GENERAL PURPOSE OPERATING AGREEMENT NO. 09-2749 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND ASK MARINE, INC. FTZ 202 SITE 15

Transmittal 1

Summary: Staff requests approval of a Second Amendment to Foreign-Trade Zone (FTZ) Operating Agreement No. 09-2749 between the City of Los Angeles Harbor Department (Harbor Department) and ASK Marine, Inc. (ASK) to continue operating its facility within FTZ 202, Site 15, located at 1020 McFarland Ave., Wilmington, California 90744. The Harbor Department, as the FTZ grantee, establishes Operating Agreements with FTZ site operators to oversee their FTZ operations. ASK’s current FTZ Operating Agreement No. 09-2749 will expire on September 24, 2019. The Second Amendment will extend the term of the Operating Agreement by five years. ASK requests to continue operating its warehouse as an FTZ warehouse. The Harbor Department needs to execute the Second Amendment to extend the Agreement, as required by the FTZ Board. Site 15 consists of 159,865 square feet of warehouse and office space on four acres located approximately five miles north of the Port of Los Angeles. ASK will operate its warehouse under FTZ procedures as a multi-usage site. This proposed Second Amendment will not require funding by the Harbor Department. If the proposed amendment is approved, the Harbor Department will receive $7,750 annually from ASK (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 Second Amendment to Foreign-Trade Zone Operating Agreement No. 09-2749 between the City of Los Angeles Harbor Department and ASK Marine, Inc.; (3) direct the Board Secretary to transmit the proposed Second Amendment to Foreign-Trade Zone Operating Agreement No. 09-2749 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 Second Amendment to Foreign-Trade Zone Operating Agreement No. 09-2749; and (5) adopt Resolution No._____________.
 

 
6.         RESOLUTION NO._____________ - APPROVAL OF AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND KIT COLE CONSULTING FOR ENVIRONMENTAL ADVOCACY REPRESENTATION

Transmittal 1
 
Summary: Staff requests approval of Agreement between the City of Los Angeles Harbor Department (“Harbor Department”) and Kit Cole Consulting for environmental advocacy representation for the Harbor Department.  The proposed Agreement with Kit Cole Consulting is for a one-year term, with two one-year options, and an annual not-to-exceed amount of $84,000 per year for a total contract amount of $252,000. Kit Cole Consulting will be paid a monthly flat fee of $7,000. The Harbor Department is financially responsible for expenses incurred 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) find that in accordance with the Los Angeles City Charter Section 1022, work under the subject Agreement is temporary in nature and can be performed more feasibly by an independent contractor rather than by City of Los Angeles employees; (3) approve the proposed Agreement between the City of Los Angeles Harbor Department and Kit Cole Consulting for a one-year term, with two one-year options, with a not-to-exceed amount of $84,000 per year, to be paid via a monthly flat fee of $7,000, for a total contract amount of $252,000; (4) authorize the Executive Director or Designee to execute, and the Board Secretary to attest to, the proposed Agreement; and (5) adopt Resolution No.___________.

 

 
7.         RESOLUTION NO._____________ - APPROVAL OF AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND NOSSAMAN LLP FOR ENVIRONMENTAL ADVOCACY REPRESENTATION

Transmittal 1
 
Summary: Staff requests approval of the Agreement between the City of Los Angeles Harbor Department (“Harbor Department”) and Nossaman LLP for environmental advocacy representation for the Harbor Department.  The proposed Agreement with Nossaman LLP is for a one-year term, with two one-year options, and a not-to-exceed amount of $132,000 per year, plus travel expenses not-to-exceed $9,000 per year, for a total contract amount of $423,000. Nossaman LLP will be paid a monthly flat fee of $11,000. The Harbor Department is financially responsible for expenses incurred 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) find that in accordance with the Los Angeles City Charter Section 1022, work under the subject Agreement is temporary in nature and can be performed more feasibly by an independent contractor rather than by City of Los Angeles employees; (3) approve the proposed Agreement between the City of Los Angeles Harbor Department and Nossaman LLP for a one-year term, with two one-year options, and a not-to-exceed amount of $132,000 per year, to be paid via a monthly flat fee of $11,000 plus eligible reimbursable travel expenses not-to-exceed $9,000 per year, for a total contract amount of $423,000; (4) authorize the Executive Director or Designee to execute, and the Board Secretary to attest to, the proposed Agreement; and (5) adopt Resolution No.___________.
 
 

 
8.         RESOLUTION NO._____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND EMPATHIA PACIFIC, INC.

Transmittal 1
 
Summary: Staff requests approval of an Agreement with Empathia Pacific, Inc. (Empathia), located in Agoura Hills, California, to provide Employee Assistance Program (EAP) services to City of Los Angeles, Harbor Department (Harbor Department) employees.  On May 16, 2016, Agreement No. 16-3382 for EAP services was approved for three years in the amount of $120,000 and expired on May 25, 2019.  The proposed Agreement would be for a period of three years for an amount not-to-exceed $120,000.  The recommendation to select Empathia is based on the Request for Proposals (RFP) conducted by the Harbor Department in March 2019.  EAP services 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 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 City Charter Section 1022, the services required can be performed more feasibly by an outside contractor than by City employees; (3) approve the Agreement with Empathia for EAP services in an amount not-to-exceed $120,000 for a total term of three years; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Agreement; and (5) adopt Resolution No.____________.

 
9.         RESOLUTION NO._____________ - APPROVAL FOR COMMISSION PRESIDENT JAIME L. LEE TO TRAVEL ON A BUSINESS DEVELOPMENT TRIP TO OAKLAND AND SAN FRANCISCO, CALIFORNIA
 
Recommendation: Board resolve to (1) adopt subject Resolution No.____________.
 

Regular Items (10 – 14)
 

 
10.       RESOLUTION NO._____________ - ORDER RESETTING COMPENSATION UNDER PERMIT NO. 306 WITH ULTRAMAR INC. 

Transmittal 1
Transmittal 2
 
Summary: Staff requests approval of an Order resetting compensation with Ultramar Inc., a wholly-owned subsidiary of Valero Energy Corporation (collectively referred to as Valero), under Permit No. 306.  The proposed compensation reset is for the period of February 1, 2019 through January 31, 2024.  Permit No. 306 has been on affirmative holdover since March 2001, and compensation was last reset for the five-year period ending January 2001.  Negotiations for a new permit with new compensation terms have failed to be completed since 2001 due to various factors related to development of the surrounding area and regulatory requirements. Valero currently pays applicable wharfage and dockage charges under Tariff No. 4, as well as land rent of $143,960 per quarter under Permit No. 306.  In calendar year 2018, Valero paid wharfage and dockage charges of $1,358,000, as well as land rent of $575,840 for aggregate calendar year 2018 compensation of $1,933,840. Under the proposed Order, land rent would increase to $485,087.72 per quarter, or $1,940,350.88 annually, and would represent an annual increase of $1,364,510.88 relative to the land rent paid in calendar year 2018.  In addition, Valero would continue paying applicable wharfage and dockage charges under Tariff No. 4.  Permit No. 306 does not have a provision for annual Consumer Price Index (CPI) adjustments.  However, staff is in the process of negotiating a new 30-year permit in which CPI increases are being negotiated.
 
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 Order resetting compensation under Permit No. 306 with Ultramar Inc.; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 306; and (4) adopt Resolution No.___________ and Order No.____________.
 
 

 
11.       RESOLUTION NO._____________ - AWARD AND APPROVAL OF CONSTRUCTION CONTRACT CONTRACTOR: MANSON CONSTRUCTION COMPANY BERTHS 226-236 TERMINAL IMPROVEMENTS SPECIFICATION NO. 2770

Transmittal 1

Transmittal 3
 
Summary: Staff requests approval of award of a contract (Contract) to Manson Construction Company to construct the Berths 226-236 Terminal Improvements Project (Project).  The Project consists of dredging, wharf improvements, backland improvements, and utility relocation and removals. The lowest responsive and responsible bidder is Manson Construction Company, located at 340 Golden Shore, Suite 310, Long Beach, CA 90802. The Contract amount of $50,301,380, plus a 10% contingency, is $55,331,518, and the Contract duration is 750 calendar days. The Project is partially funded under the Proposition 1B, State Trade Corridor Improvement Fund, through the State of California Department of Transportation, in the amount of $5,430,000. Payment of expenses incurred under the Contract 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 statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(i) of the Los Angeles City CEQA Guidelines; (2) find that, in accordance with the Los Angeles City Charter Section 1022, work under the subject Contract can be performed more feasibly by an independent contractor rather than by City employees; (3) award and approve, Specification No. 2770 for Item Nos. 1 through 65 of the proposal schedule to Manson Construction Company for the amount of $50,301,380; that a 10% contingency not included in the original Contract amount be applied for a total authorization of $55,331,518; and authorize payment from the Harbor Department Construction Account.  The Contract time for performance of the work shall be 750 calendar days from the Notice to Proceed; (4) authorize the Executive Director to execute and the Board Secretary to attest to this Contract for and on behalf of the Board; (5) in accordance with City Charter Section 655 (g), delegate and authorize the Executive Director to adjust the final bid quantities and accept the construction Contract upon its completion; and (6) adopt Resolution No.____________.
 
 

 
12.       RESOLUTION NO._____________ - GRANT ACCEPTANCE AND APPROVAL OF A GRANT AGREEMENT AWARD NO. ARV-17-049 WITH THE CALIFORNIA ENERGY COMMISSION AND APPROVAL OF A FUNDING AGREEMENT WITH THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT TO IMPLEMENT AN ADVANCED INFRASTRUCTURE DEMONSTRATION PROJECT

Transmittal 1

Transmittal 5
 
Summary: Staff requests that the Board of Harbor Commissioners (Board) accept and approve a California Energy Commission (CEC) Grant Agreement Award No. ARV-17-049, in the amount of $7,842,270 to fund the Zero Emission Freight Vehicle Advanced Infrastructure Demonstration Project (Project) with West Basin Container Terminal (WBCT) and Wireless Advanced Vehicle Electrification, Inc. (WAVE).  The Project will construct and demonstrate an advanced infrastructure system developed by WAVE to support the operations of 10 battery-electric yard tractors at WBCT.  The City of Los Angeles Harbor Department (Harbor Department) will cover in-house staff time for managing the grant estimated at $80,000. Separately, the 10 battery-electric yard tractors will be funded under a 2016 Targeted Air Shed Grant (TASG), between the U.S. Environmental Protection Agency (EPA) and the South Coast Air Quality Management District (SCAQMD).  SCAQMD applied for the TASG on behalf of the Harbor Department and WBCT.  In order to support the TASG, staff also requests that the Board approve a Funding Agreement with SCAQMD in the amount of $312,500 to provide a portion of the funding for the purchase of the 10 battery-electric yard tractors. The total cost of the Project is estimated to be $11,349,155 and is anticipated to be funded by the $7,842,270 CEC grant and $3,506,885 in matching funds. Acceptance and approval of the proposed Grant Agreement would require the Harbor Department to contribute aggregate matching funds of $392,500, comprised of $80,000 in staff time to manage the CEC grant and $312,500 in cash funding for the purchase of the 10 battery-electric yard tractors.
 
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 Class 2(f), of the Los Angeles City CEQA Guidelines; (2) accept and approve the Grant Agreement between the City of Los Angeles Harbor Department and the California Energy Commission in the amount of $7,842,270; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Grant Agreement for and on behalf of the Board; (4) approve the delegation of authority to the Executive Director to accept and execute non-significant changes to the Grant Agreement, as defined by the California Energy Commission Grant Award Terms and Conditions and with approval as to form and legality by the Office of the City Attorney; (5) approve the Funding Agreement between the City of Los Angeles Harbor Department and the South Coast Air Quality Management District in the amount of $312,500; (6) authorize the Executive Director to execute and the Board Secretary to attest to said funding agreement for and on behalf of the Board; and (7) adopt Resolution No.__________.
 

 
13.       RESOLUTION NO._____________ - AUTHORIZING THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS TO APPROVE THE ISSUANCE OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT 2019 REFUNDING REVENUE BONDS
 

Transmittal 1
Transmittal 2
 
Summary: Staff requests adoption of a resolution authorizing the issuance of the 2019 Refunding Revenue Bonds that will refund (i.e. refinance) all or a portion of the City of Los Angeles Harbor Department's (Department) 2009 Series A and C Bonds (the “2009 AC Bonds”), which are currently outstanding in the principal amount of $235,200,000. Following August 1, 2019 debt service payment, $220,595,000 in principal will be outstanding. A total of $215,595,000 of the bonds will be refunded, as $5,000,000 of the 2009 Series C Bonds are non-callable. The refunding of the 2009 AC Bonds for a total of $215,595,000 is expected to result in combined present value savings of approximately $35,467,327 or 16.5% of the bonds to be refunded with an average annual debt service savings of $4,190,500 through August 2031. It is estimated that the all-in true interest cost for the combined transaction will be approximately 1.87%. The 2019 Refunding transaction will not change the maturity date of these bonds or result in additional debt, but will replace higher interest rate debt with lower interest rate debt thereby resulting in lower debt service payments for 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) authorize the issuance of the City of Los Angeles Harbor Department 2019 Refunding Revenue Bonds (the "Refunding Revenue Bonds"), in one or more series, through a negotiated sale in a combined principal amount not-to-exceed $217,000,000 and with a final maturity no later than August 1, 2031; (3) authorize the current refunding of the Harbor Department's 2009 AC Bonds with the proceeds of the 2019 Refunding Revenue Bonds, subject to the parameters set forth in this Resolution; (4) ratify actions taken by officers, employees, and agents of the Harbor Department prior to the date the Resolution becomes final, including but not limited to the publication of the Notice of Intention to Sell, and printing and distribution of the Preliminary Official Statement, consistent with the Board action; (5) direct the Board Secretary, pursuant to Charter Section 609 and the Bond Procedural Ordinance (LAAC Sections 11.28.1 through 11.28.9) to certify that the Board has adopted the Resolution and, on behalf of the Board, immediately transmit for further processing certified copies of the Resolution and copies of the Board item and Transmittals to the Mayor, to the City Administrative Officer, and to the City Council; and (6) adopt Resolution No.____________. 
 

 Debt & Treasury Management

 
14.       RESOLUTION NO._____________ - AUTHORIZING THE APPOINTMENT OF UNDERWRITING FIRMS TO LEAD THE NEGOTIATED SALE IN CONJUNCTION WITH THE ISSUANCE OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT 2019 REFUNDING REVENUE BONDS

Transmittal 1

Summary: Staff is requesting authority to appoint Jefferies, LLC as senior manager, and Siebert Cisneros Shank & Co. LLC, and UBS Financial Services Inc. as co-managers for the issuance of the City of Los Angeles Harbor Department’s (Harbor Department) 2019 Refunding Revenue Bonds. These bonds will refund (i.e. refinance) all or a portion of the Harbor Department's 2009 Series A and C Bonds (the “2009 AC Bonds”) which are currently outstanding in the principal amount of $235,200,000. Following the August 1, 2019 debt service payment, $220,595,000 in principal will be outstanding. A total of $215,595,000 of the bonds will be refunded, as $5,000,000 of the 2009 Series C Bonds are non-callable. The total cost for the underwriting services will be approximately $358,000 and will include compensation for all three firms, fees for underwriters’ and Department counsel, and other miscellaneous costs. These costs will be paid from the proceeds of the bond issuance.
 
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) appoint the team of underwriting firms consisting of Jefferies, LLC as senior manager, and Siebert Cisneros Shank & Co. LLC a Minority, Women, and Small  Business Enterprise (MBE/WBE/SBE), and UBS Financial Services Inc. as co-managers for the negotiated sale of the Harbor Department’s 2019 Refunding Revenue Bonds; (3) this Resolution and the selection of the underwriting firms shall be subject to the City Council oversight pursuant to Section 245 of the Charter; and (4) adopt Resolution No.______________.
 
L.       Adjournment