Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
THURSDAY, AUGUST 22, 2019 AT 9:00 A.M.
REGULAR MEETING AGENDA
Board of Harbor Commissioners
President Jaime L. Lee
Commissioner Diane L. Middleton
Commissioner Lucia Moreno-Linares
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
Convene in Memory of Gerd Roesner & Lester Brand
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 July 25, 2019
H. Presentation
Proposed MOU POLA / POLB – Eugene Seroka, Port of Los Angeles Executive Director
I. Level I Coastal Development Permit
The Executive Director has approved two Level I CDPs:
CDP No. 19-08 PBF Energy Western Region LLC – To Demolish Structures and Equipment on Berth 238
Transmittal 1
Transmittal 2
CDP No. 19-10 Westrec Marina Management Inc. – Install Fence Enclosures for Trash Receptacles in the Cabrillo Way Marina Parking Lots
Transmittal 1
Transmittal 2
J. Board Reports of the Executive Director
Consent Items (1 - 6)
Transmittal 1
Transmittal 2
Summary: Staff requests approval of Joint Revocable Permit (JRP) No. 19-01 between American Integrated Services, Inc. (AIS) and the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB), as joint owners, for the maintenance and operation of a private roadway crossing, located southeast of Grant Street and Alameda Street in Wilmington. The proposed JRP for the private roadway crossing is currently entitled under a Southern Pacific Railroad (SPR) license agreement with the previous owner of the property served by the crossing. Existing SPR licenses were all assigned to the ports. However, there is now a new owner/user for this crossing and the license agreement is not assignable. As such, this proposed JRP will replace the existing SPR license. The initial rent payable under the proposed JRP will be $10,862.50 per year with annual adjustments based upon the Consumer Price Index, All Urban Consumers, Los Angeles, All Items (CPI). Based upon the Harbor Department’s 50 percent interest in the JRP, the Harbor Department would receive $5,431.25 for the initial year.
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 Section 15301 of the State CEQA Guidelines; (2) approve Joint Revocable Permit No. 19-01 between American Integrated Services, Inc. and the City of Los Angeles Harbor Department and Port of Long Beach, as tenants in common; (3) authorize the Executive Director to execute and the Board Secretary to attest to Joint Revocable Permit No.19-01; and (4) adopt Resolution No.___________.
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests approval of the proposed parent guaranties provided by PBF Energy, Inc.; PBF Energy Company, LLC; and PBF Holding Company, LLC for Permit No. 936 with PBF Energy Western Region LLC (PBF). Permit No. 936 has a term of 30 years effective July 1, 2019, which grants PBF the right to use City of Los Angeles Harbor Department (Harbor Department) premises consisting of 40.04 acres at Berths 238-239 for the construction, operation, and maintenance of a marine oil terminal, subsurface pipelines, and storage tanks.
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 parent guaranties provided by PBF Energy, Inc.; PBF Energy Company, LLC; and PBF Holding Company, LLC; (3) direct the Board Secretary to transmit the parent guaranties to City Council for approval pursuant to Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the parent guaranties upon approval by City Council; and (5) adopt Resolution No._____________.
3. RESOLUTION NO._____________ - SECOND AMENDMENT TO AGREEMENT NO. 17-3517 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PETROLEUM TELCOM, INC. FOR THE PORT POLICE RADIO SYSTEM REBANDING PROJECT, PHASE I
Transmittal 1
Summary: Staff requests approval of the Second Amendment to Agreement No. 17-3517 (Second Amendment) with Petroleum Telcom, Inc. (Telcom) for the Port Police Radio System Rebanding Project, Phase I (Phase I). The proposed Second Amendment will extend Agreement No. 17-3517 by one additional year, for a total of three years, to August 31, 2020. The total not-to-exceed compensation amount is unchanged at $1,188,724. The requested time extension is required due to the time required to obtain permits to construct the radio infrastructure. The recommendation to enter into Agreement No. 17-3517 was based on a competitive Request for Proposals (RFP) process conducted by the City of Los Angeles Harbor Department (Harbor Department). The Harbor Department will continue to be financially responsible for payment of services rendered under the 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 the Second Amendment to extend Agreement No. 17-3517 by one additional year, for a total duration of three years; (3) authorize the Executive Director to execute and the Board Secretary to attest; and (4) adopt Resolution No.____________.
Cargo Marketing
4. RESOLUTION NO._____________ - APPROVAL OF FOREIGN-TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND MORRISON EXPRESS CORPORATION (U.S.A.) FTZ 202, SITE 59
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Morrison Express Corporation (U.S.A.) (Morrison) to operate its facility within FTZ 202, Site 59, located at 2000 South Hughes Way, El Segundo, California 90245. Currently, Morrison is applying to the FTZ Board to designate this site as an FTZ warehouse under the alternative site framework as usage-driven Site 59. The Harbor Department, as the FTZ grantee, establishes Operating Agreements with FTZ site operators to oversee their FTZ operations. Site 59 is a warehouse and office building totaling approximately 0.67 acres located approximately 17 miles from the Port of Los Angeles. Morrison will operate its facility under FTZ procedures as a multi-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 $7,750 annually from Morrison (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 Morrison Express Corporation (U.S.A.); (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 GENERAL PURPOSE OPERATING AGREEMENT NO. 14-3270 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND GEODIS LOGISTICS, LLC., FTZ 202 SITE 40
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of a Second Amendment (Second Amendment) to Foreign-Trade Zone (FTZ) Operating Agreement No. 14-3270 between the City of Los Angeles Harbor Department (Harbor Department) and Geodis Logistics, LLC. (Geodis) to continue operating its facility within FTZ 202, Site 40, located at 1710 W. Baseline Road, Rialto, California 92376. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ site operators to oversee their FTZ operations. Geodis’s current FTZ Operating Agreement No. 14-3270 will expire on November 30, 2019. The term of the agreement is five years with three, five year renewal options. Geodis requests to continue operating its warehouse as an FTZ warehouse and exercise its first renewal option. The Harbor Department needs to execute the Second Amendment to extend the Agreement, as required by the FTZ Board. Site 40 consists of 718,000 square feet of warehouse and office space on 32 acres located approximately 70 miles northeast of the Port of Los Angeles. Geodis 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 Geodis (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. 14-3270 between the City of Los Angeles Harbor Department and Geodis Logistics, LLC.; (3) direct the Board Secretary to transmit the proposed Second Amendment to Foreign-Trade Zone Operating Agreement No. 14-3270 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. 14-3270; and (5) adopt Resolution No.___________.
6. RESOLUTION NO._____________ - THIRD AMENDMENT TO MEMORANDUM OF AGREEMENT NO. 10-2900 WITH THE UNITED STATES ARMY CORPS OF ENGINEERS, LOS ANGELES DISTRICT
Transmittal 1
Transmittal 2
Summary: Staff recommends approval of a Third Amendment to Memorandum of Agreement No. 10-2900 (Agreement) with the United States Army Corps of Engineers (Corps) to expedite the Corps independent evaluation of the City of Los Angeles Harbor Department’s (Harbor Department) priority permit applications and environmental assessments required by the National Environmental Policy Act (NEPA). The Corps acts as the NEPA lead agency for the issuance of federal permits related to waters of the United States. The Third Amendment would extend the term of the Agreement by an additional five years and would increase the contract amount by an additional $400,000 for a total not-to-exceed amount of $1,300,000. The Harbor Department is financially responsible for payment of the proposed Third Amendment.
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 Agreement No. 10-2900 with the United States Army Corps of Engineers, Los Angeles District extending the term by five years to December 31, 2024, and increasing the contract amount by $400,000 for a total not-to-exceed contract amount of $1,300,000; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Amendment for and on behalf of the Board; and (4) adopt Resolution No.___________.
Regular Items (7 – 9)
7. RESOLUTION NO._____________ - ORDER RESETTING COMPENSATION UNDER PERMIT NO. 750 WITH SA RECYCLING, LLC
Transmittal 1
Transmittal 2
Summary: Staff requests approval of an Order resetting compensation under Permit No. 750 (P750) with SA Recycling, LLC, a Delaware Limited Liability Company (SA Recycling) for the five-year period of August 31, 2019 through August 30, 2024. P750 grants SA Recycling use of 25.52 acres (1,111,469 square feet) of land and 800 linear feet of wharf at Berths 210-211 for a term of 30 years, expiring August 30, 2024. The current monthly fixed rent is $222,960.04. Under the compensation reset Order, effective August 31, 2019, SA Recycling’s monthly fixed rent shall be increased by 10 percent to $245,256.04 in Year 1, $269,781.65 in Year 2, $296,759.81 in Year 3, and by the annual change in the Consumer Price Index (CPI) in Years 4 and 5. CPI adjustments will be subject to a floor of zero percent, and SA Recycling will continue to pay any relevant charges under Tariff No. 4.
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 to Permit No. 750 with SA Recycling; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 750; and (4) adopt Resolution No.____________ and Order No.____________.
Port Police
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of a Memorandum of Agreement (MOA) between the City of Los Angeles Harbor Department (Harbor Department) and the City of Los Angeles (City), for the reimbursement of funds allocated to the Harbor Department under the Fiscal Year (FY) 2018 Urban Area Security Initiative (UASI) Grant Program. If approved, the proposed federal award will be in the amount of $3,493,729 with an award date of September 1, 2018. Under the terms of the proposed MOA, the Harbor Department will be fully reimbursed for the $3,493,729 in expenses expected to be incurred as part of the Land Mobile Radio Upgrade Project Phase II. The award is for a three year period ending May 31, 2021. There is no cost share required under this FY 2018 UASI Grant Program.
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 Memorandum of Agreement between the City of Los Angeles Harbor Department and the City of Los Angeles for the reimbursement of funds allocated to the Harbor Department under the Fiscal Year 2018 Urban Area Security Initiative; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Obligating Document for the Award; (4) authorize the Harbor Department to implement the projects approved for funding by the City; and (5) adopt Resolution No. ____________ accepting the Grant Award for UASI FY 2018.
Community Relations
9. RESOLUTION NO._____________ - COMMUNITY INVESTMENT GRANTS FOR INTERNATIONAL TRADE EDUCATION PROGRAMS, INC. DBA EXP, LOS ANGELES MARITIME INSTITUTE AND BOYS & GIRLS CLUBS OF THE LOS ANGELES HARBOR
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests approval of the proposed agreements between the City of Los Angeles Harbor Department and International Trade Education Programs, Inc. dba EXP (EXP), Los Angeles Maritime Institute (LAMI), and Boys & Girls Clubs of the Los Angeles Harbor (Boys & Girls Club) for Community Investment Grants supporting their educational programs (Agreements). EXP (formerly ITEP), LAMI and Boys & Girls Club were selected through the Community Investment Grant Program process. The proposed Agreements are for two years in the amounts of: 1) EXP - $325,000 each year for a total of $650,000; 2) LAMI - $250,000 each year for a total of $500,000; and 3) Boys & Girls Club - $100,000 each year for a total of $200,000. The combined two-year total for all three Agreements is $1,350,000. The Harbor Department is financially responsible for funding under the proposed Agreements.
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 proposed Community Investment Grants are consistent with the criteria of the Board-approved Sponsorship/Hosting Policy (March 2010); (3) approve the proposed Agreement with EXP for a term of two years and a total not-to-exceed amount of $650,000; (4) approve the proposed Agreement with LAMI for a term of two years and a total not-to-exceed amount of $500,000; (5) approve the proposed Agreement with Boys & Girls Club for a term of two years and a total not-to-exceed amount of $200,000; (6) authorize the Executive Director and the Board Secretary to execute and attest to the proposed Agreements with EXP, LAMI, and Boys & Girls Club; and (7) adopt Resolution No.___________.
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)
Travelers Property Casualty Company and Navigators Insurance Company v. City of Los Angeles, U.S. District Court Case No. 15-CV-7799 GW (PJWx)
3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
Natural Resources Defense Council, et al. v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS070017
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: (one case)
6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 999 with China Shipping Holding Company, Ltd.:
Property: Berths 100-103, San Pedro
City Negotiator: Michael DiBernardo
Tenant Negotiator: Paul Nazzaro
Negotiating Parties: City and China Shipping Holding Company, Ltd.
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 a proposed permit with Bellwether Financial Group:
Property: Berth 44, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Joseph McCarthy
Negotiating Parties: City and Bellwether Financial Group
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 Permit 933 with County Sanitation District of Los Angeles County:
Property: Classification Yard, Wilmington
City Negotiator: Sumita Thappa
Tenant Negotiator: Ed Stewart
Negotiating Parties: City and County Sanitation District of Los Angeles County
Under Negotiation: Price and Terms
9. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed permit with TraPac LLC:
Property: Berths 136-147, Wilmington
City Negotiator: Eugene Seroka
Tenant Negotiator: Stephen Edwards
Negotiating Parties: City and TraPac LLC
Under Negotiation: Price and Terms
10. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 904 and Memorandum of Understanding Agreement 16-3442 with AltaSea at the Port of Los Angeles:
Property: City Dock 1, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Tim McOsker
Negotiating Parties: City and AltaSea at the Port of Los Angeles
Under Negotiation: Price and Terms
L. Adjournment