Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, JULY 25, 2019 AT 9:00 A.M.
Board of Harbor Commissioners
President Jaime L. Lee
Commissioner Diane L. Middleton
Commissioner Lucia Moreno-Linares
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
ORDER OF BUSINESS
Convene in Memory of Robert Dunbar
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
1. Level I CDP No. 18-25 Pubic Appeal Hearing of July 11, 2019
2. Special Meeting of July 11, 2019
H. Presentation
I. Level I Coastal Development Permit
J. Board Reports of the Executive Director
Consent Items (1 & 2)
Office of the City Attorney
Transmittal 1
Transmittal 2
Summary: The Office of the City Attorney (Office) requests approval of a Legal Services Agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and the law firm of Nossaman LLP (Nossaman) for legal services for eminent domain, inverse condemnation and real estate matters. The Agreement is for a term of three years with compensation authority of $200,000. The Harbor Department is financially responsible for payment for legal 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) find in accordance to Charter Section 1022 that the scope of work of the proposed Agreement can be more economically and feasibly provided by an independent contractor than by City employees; (3) approve a Legal Services Agreement with Nossaman LLP in the amount of $200,000 for a three-year term From July 20, 2019 through July 19, 2022; (4) ratify the Agreement commencement date of July 20, 2019 and expenses incurred from July 20, 2019 until the date of execution by the Harbor Department; (5) authorize the Executive Director and Board Secretary to execute and attest to the Agreement; and (6) adopt Resolution No.____________.
Debt & Treasury Management
2. RESOLUTION NO.____________ - ADOPT THE UPDATED DEBT MANAGEMENT POLICY OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT
Transmittal 1
Transmittal 2
Summary: Staff requests the Board of Harbor Commissioners (Board) to adopt this resolution to approve the proposed updates to the Debt Management Policy (Policy) of the City of Los Angeles Harbor Department (Harbor Department). The current Policy was approved by the Board on January 8, 2015 pursuant to Resolution 15-7743, and is being revised to fully comply with the Senate Bill No. 1029 (SB 1029), an act to amend Section 8855 of the Government Code, relating to debt issuance reporting, which was approved by the Governor on September 12, 2016.
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 adopt the Harbor Department’s Debt Management Policy as outlined in this report for full compliance with the Senate Bill No. 1029 (SB 1029), an act to amend Section 8855 of the Government Code, relating to debt issuance reporting, which was approved by the Governor on September 12, 2016; and (3) adopt Resolution No.____________.
Regular Items (3 – 6)
Information Technology
3. RESOLUTION NO._____________ - PURCHASE ORDER CHANGE NO. 3 TO CONTRACT NO. 39811 WITH ZONES, INC. FOR INFORMATION TECHNOLOGY EQUIPMENT, SUPPLIES AND RELATED SERVICES
Transmittal 1
Transmittal 2
Summary: Staff requests approval of Purchase Order Change (POC) Number 3 to Contract Number 39811 with Zones, Inc. (Zones) for information technology (IT) equipment, supplies and related services. Contract No. 39811 is used on an as-needed basis to purchase computer-based hardware, including desktops, laptops, tablets, monitors, printers, servers, routers, switches, peripherals, supplies and related services. These purchases are required to support on-going IT operations. The proposed POC No. 3 will increase the not-to-exceed amount by $4,600,000, to a total not-to-exceed amount of $11,500,000, and extend the contract duration by two additional years, to a total of five years. The POC will not change any other terms of the contract. Contract No. 39811 was awarded to Zones based on the competitive bid process performed by the Contracts and Purchasing Division of the City of Los Angeles Harbor Department (Harbor Department) for Bid Number F-969. Zones is headquartered in Auburn, Washington, with a local office in Cerritos, California. The proposed POC No. 3 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 the competitive contracting requirement is met using the responses from the Harbor Department’s Bid Number F-969; (3) approve POC No. 3 with Zones, Inc. for the purchase of IT equipment, supplies, and related services for an amount not-to-exceed $11,500,000 and a duration of five years; (4) direct the Board Secretary to transmit said contract 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 make non-technical corrections or clarifications, within the authorized contract amount, to effectuate the intent of the contract; (6) authorize the Executive Director to execute and the Board Secretary to attest; and (7) adopt Resolution No._____________.
Port Police
4. RESOLUTION NO._____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND CONVERGINT TECHNOLOGIES, LLC FOR SECURITY SYSTEM MAINTENANCE, REPAIR, INSTALLATION, AND INTEGRATION, ON AN AS-NEEDED BASIS
Transmittal 1
Transmittal 2
Summary: Staff requests approval of an agreement between the City of Los Angeles Harbor Department (Harbor Department) and Convergint Technologies, LLC (Convergint), Orange, California (Agreement), to provide professional services to assist the Harbor Department with the maintenance, repair, replacement, installation, and integration of equipment related to security systems. These systems include, but are not limited to, Closed Circuit Television (CCTV), access control, and networking. The scope of this agreement also includes system upgrades (hardware and software) that may be needed in order to enhance system performance or add to the system’s overall capabilities. Convergint has been providing the above listed services since June 18, 2013. Their current Agreement (No. 16-3413) expires on August 15, 2019. Services under the new Agreement will not begin prior to the expiration of the former. The proposed Agreement (Transmittal 1) will be for a period of one year and will include two, one-year renewal options, at an amount not to exceed $7,500,000 ($2,500,000 per year). A portion of the Agreement will be funded through the Port Security Grant Program (PSGP). Fully reimbursable federal funds, in the amount of $1,875,000, were awarded for this project. The Harbor Department is required to fund a twenty-five percent cost share in the amount of $625,000. The grant performance period is three years and will expire on August 31, 2020. Funding for future years will be requested as part of the annual budget process and additional grant funds will be sought through the annual PSGP application process. This Agreement is the financial responsibility of the Harbor Department.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined 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 that, although portions of the work under the subject Agreement can be performed by City employees, there are no staff available to assist; (3) award the one-year Agreement, with two, one-year renewal options, to Convergint Technologies LLC; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Agreement; and (5) adopt Resolution No.__________.
Debt & Treasury Management
5. RESOLUTION NO._____________ - AUTHORIZING THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS TO APPROVE PRINCIPAL FINANCING DOCUMENTS RELATING TO THE ISSUANCE OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT 2019 REFUNDING REVENUE BONDS
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Transmittal 7
Summary: Staff requests adoption of the Resolution authorizing approval of the principal financing documents in relation to the issuance of 2019 Refunding Revenue Bonds that will refund (i.e. refinance) all or a portion of the City of Los Angeles 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. On June 20, 2019, the Board of Harbor Commissioners approved the issuance of 2019 Refunding Revenue Bonds to refund all or a portion of the 2009 AC Bonds. On June 20, 2019, the Board of Harbor Commissioners also approved the appointment of three investment banks 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 to this transaction. The 2019 Refunding transaction will not result in additional debt or change the maturity of these bonds, but will replace higher interest rate debt with lower interest rate debt reducing the future debt service payment obligations 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) approve the principal financing documents related to the 2019 Refunding Revenue Bonds, which include the Resolution, Indenture of Trust, Continuing Disclosure Certificate, Bond Purchase Agreement, the Preliminary Official Statement, the TEFRA (Tax Equity and Fiscal Responsibility Act) Document, and the Independent Green Bond Certification; (3) find that the Harbor Department published a TEFRA Document on July 3, 2019 and held a TEFRA Hearing by Department staff at 10 AM on July 10, 2019. Pursuant to Section 147(f) of the Internal Revenue Code of 1986, there must be a Public Hearing for the financing or refinancing of Capital Improvement Program (CIP) projects with proceeds from the sale of tax-exempt obligations; and (4) adopt Resolution No.____________.
Office of the City Attorney
6. RESOLUTION NO._____________ - AUTHORITY FOR SETTLEMENT OF CERTAIN WORKERS’ COMPENSATION CASES IN ACCORDANCE WITH LOS ANGELES ADMINISTRATIVE CODE SECTION 5.177(c)
Transmittal 1
Transmittal 2
Summary: The Office of the City Attorney recommends approval of a Resolution granting authority to the Los Angeles City Attorney for settlement of certain workers’ compensation cases of Harbor Department employees, in accordance with the provisions of Los Angeles Administrative Code (LAAC) Section 5.177(c). The Resolution grants the Office of the City Attorney settlement authority to settle workers’ compensation litigated and non-litigated claims for which the Harbor Department may ultimately be liable, for statutorily-mandated payments as to any one person without necessity of first receiving approval of the Board. This authority is consistent with the settlement authority granted to the City Attorney in LAAC Section 5.177(c) to settle workers’ compensation cases. This resolution will formally incorporate existing State law by adoption of the LAAC Section 5.177(c). Currently, the Harbor Department is paying the statutorily-mandated payments through charge-back from the City Personnel 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 (CEOA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines; (2) adopt Resolution No.____________; and (3) authorize the Executive Director and Board Secretary to execute and attest to the transmitted Resolution.
K. 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. 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
3. 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)
4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed permit with Certi-Fresh Seafood:
Property: Municipal Fish Market, Stall 9, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Nino Palma
Negotiating Parties: City and Certi-Fresh Seafood
Under Negotiation: Price and Terms
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit No. 750 with SA Recycling, LLC:
Property: Berths 210-211, Terminal Island
City Negotiator: Sumita Thappa
Tenant Negotiators: Terry Adams
Negotiating Parties: City and SA Recycling, LLC
Under Negotiation: Price and Terms
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 Toll Global Forwarding:
Property: 2401 Pacific Coast Highway, Wilmington
City Negotiator: Michael DiBernardo
Tenant Negotiator: Mike Diviriglio
Negotiating Parties: City and Toll Global Forwarding
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. 881 with TraPac Inc.:
Property: Berths 136-147, Wilmington
City Negotiator: Sumita Thappa
Tenant Negotiators: Ron Triemstra and James Barborak
Negotiating Parties: City and TraPac Inc.
Under Negotiation: Price and Terms
8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed permit with Bellwether Financial Group:
Property: Berth 44, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Joe Ueberroth
Negotiating Parties: City and Bellwether Financial Group
Under Negotiation: Price and Terms
9. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code Sections 54957 and 54957.6, and Los Angeles City Charter Section 604(b))
Title: Harbor Department Executive Director
L. Adjournment