Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, SEPTEMBER 19, 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
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
Intermodal Container Transfer Facility Joint Powers Authority Governing Board Meeting of September 11, 2019
G. Approval of the Minutes
Regular Meeting of September 5, 2019
H. Presentation
1. 2018 Inventory of Air Emissions – Chris Cannon, Environmental Management Division
2. Proposed MOU POLB/POLA – Michael DiBernardo, Deputy Executive Director of Marketing and Customer Relations
I. Level I Coastal Development Permit
J. Board Reports of the Executive Director
Consent Items (1 - 4)
Office of the City Attorney
Summary: The Office of the City Attorney (Office) requests approval of a legal services agreement (Agreement) between the City Los Angeles Harbor Department (Harbor Department) and the law firm of Liebert Cassidy Whitmore for legal services for employment matters and Fair Labor Standards Act issues. The Agreement is for a term of three years with compensation authority of $300,000. This is the only firm on retainer for employment matters. 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 Liebert Cassidy Whitmore in the amount of $300,000 for a three-year term; (4) authorize the Executive Director and Board Secretary to execute and attest to the Agreement; and (5) adopt Resolution No.____________.
Office of the City Attorney
2. RESOLUTION NO._____________ - AGREEMENTS FOR BOND COUNSEL LEGAL SERVICES WITH HAWKINS, DELAFIELD & WOOD LLP; KUTAK ROCK LLP; AND NIXON PEABODY LLP
Transmittal 1
Transmittal 2
Transmittal 3
Summary: The Office of the City Attorney requests that the Board of Harbor Commissioners (Board) approve the selection of three law firms to provide bond and disclosure counsel services to the Harbor Department (Department). The Department’s Debt and Treasury Management Division will require bond and disclosure counsel assistance in the future with respect to any upcoming bond transactions, annual continuing disclosure services, and any other type of financing related to capital improvement projects. The Office of the City Attorney requests the Board to approve and award agreements to three firms that were selected from a competitive selection process: (1) Hawkins, Delafield & Wood LLP, (2) Kutak Rock LLP, and (3) Nixon Peabody LLP. Each agreement will be for three years for a combined total appropriation request of $180,000. These are the only firms on retainer for bond counsel matters. The Harbor Department will be financially responsible for payment of expenses under the proposed agreements.
Recommendation: Board resolve to (1) find that the Director o\f 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 Agreements can be more economically and feasibly provided by an independent contractor than by City employees; (3) approve the individual and separate Agreements with (1) Hawkins, Delafield & Wood LLP in the amount of $60,000, (2) Kutak Rock LLP in the amount of $60,000, and (3) Nixon Peabody LLP in the amount of $60,000, each for a period of three years; (4) authorize the Executive Director and Board Secretary to execute and attest to the Agreements; and (5) adopt Resolution No.___________.
Cargo & Industrial Real Estate
3. RESOLUTION NO._____________ - APPROVAL OF NEW JOINT REVOCABLE PERMIT NO. 19-08 AND MEMORANDUM OF AGREEMENT AMONG MARQUEZ PRODUCE INC. AND THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PORT OF LONG BEACH AS JOINT OWNERS
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of new Joint Revocable Permit (JRP) No. 19-08 and Memorandum of Agreement (MOA) among Marquez Produce Inc. (Marquez) 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 subsurface utility facilities in the City of Vernon. The initial rent payable is $16,000.00 per year, with annual adjustment based on the Consumer Price Index, All Urban Consumers, Los Angeles All Items (CPI).
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 Section 15301 of the State CEQA Guidelines; (2) approve Joint Revocable Permit No. 19-08 among Marquez Produce Inc. and the City of Los Angeles Harbor Department and Port of Long Beach, as joint owners; (3) authorize the Executive Director to execute and the Board Secretary to attest to Joint Revocable Permit No.19-08; (4) authorize the Executive Director to execute and the Board Secretary to attest to Memorandum of Agreement; and (5) adopt Resolution No.____________.
Cargo Marketing
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of a First Amendment to Foreign-Trade Zone (FTZ) Operating Agreement No. 14-3264 between the City of Los Angeles Harbor Department (Harbor Department) and Dependable Highway Express, Inc. (DHE) to continue operating its facility within FTZ 202, Site 10D, located at 22411 South Bonita Street, Carson, California 90745. The Harbor Department, as the FTZ grantee, establishes Operating Agreements with FTZ site operators to oversee their FTZ operations. DHE’s current FTZ Operating Agreement No. 14-3264 will expire on November 30, 2019. The First Amendment will extend the Operating Agreement by five years. DHE requests to continue operating its warehouse as an FTZ warehouse. The Harbor Department needs to execute the First Amendment to extend the Agreement, as required by the FTZ Board.
Site 10D consists of 94,984 square feet of warehouse and office space on four acres located approximately nine miles from the Port of Los Angeles. DHE will operate its facility under FTZ procedures as a multi-usage site. The proposed First Amendment will not require funding by the Harbor Department. If the proposed amendment is approved, the Harbor Department will receive $7,750 annually from DHE (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 First Amendment to Foreign-Trade Zone Operating Agreement No. 14-3264 between the City of Los Angeles Harbor Department and Dependable Highway Express Inc.; (3) direct the Board Secretary to transmit the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 14-3264 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 First Amendment to Foreign-Trade Zone Operating Agreement No. 14-3264; and (5) adopt Resolution No._____________.
Regular Items (5 & 6)
Waterfront & Commercial Real Estate
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Transmittal 7
Transmittal 8
Transmittal 9
Transmittal 10
Summary: Staff is requesting approval of a real estate exchange and several supporting instruments that will complete the contemplated rail property exchanges and purchases of the 1994 Alameda Corridor project and give each the City of Los Angeles Harbor Department (POLA) and Harbor Department of Long Beach (POLB) control over the rail property within their respective Harbor District. Certain rail property which both Ports believe would be in their best interests to continue to manage together as joint tenants pursuant to a Tenancy in Common (TIC) Agreement has been excluded from the proposed transfer. As this exchange revolves around rail property existing within POLA and POLB’s (collectively Ports) respective Harbor Districts, it is important to note that there is a greater amount of jointly-owned rail property in POLA’s Harbor District. Consequently, POLA will receive substantially more property in the exchange with POLB. The negotiated cost of the "excess" (the amount greater than the jointly held property within POLB’s Harbor District) property is $9,148,155. Staff requests approval to expend $9,148,155 to be paid to the POLB for the "excess" property found within POLA’s Harbor District. In addition, staff requests the approval of the documents connected to this transaction which consist of Quitclaim Deeds, an amended TIC Agreement, a Master Agreement (MA), and an Order and draft Ordinance. The Ports will concurrently seek approval of the above documents from their respective governing authorities. Execution of Deeds, Agreements, MA and transfer of funds will not occur until all requisite approvals are obtained by the Ports from each of their respective governing authorities, and will become effective at such time.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is generally exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 1 of the Los Angeles City CEQA Guidelines; (2) find that pursuant to Section 385 of the City of Los Angeles Charter, the Harbor Department Property is no longer required for use by the City of Los Angeles and the public interest and necessity require the exchange and authorize the private exchange; (3) find that pursuant to Section 7.27 of the City of Los Angeles Administrative Code, the proposed private exchange of real property owned by the City of Los Angeles Harbor Department with the Harbor Department of Long Beach without notice of sale or advertisement for bids is in the public interest, is a public necessity, and is in the best interest of the City of Los Angeles Harbor Department; (4) find that this transaction is in the public interest in that it will create public benefits, including, but not limited to: efficiencies in the administration of port lands, rail transportation throughout the San Pedro Bay port complex, and complete the intended ownership framework of the Ports’ 1994 Alameda Corridor rail lands acquisition; (5) approve the budgetary transfer of $9,148,155 from the Unappropriated Balance to Account 13786 (Capitalized Fixed Asset Acquisition), Center 1800, Program 000 for the property purchases associated with this request; (6) direct the Board Secretary to transmit the Resolution, Order, and Ordinance to the mayor for approval pursuant to Section 343(b) of the City Charter; (7) direct the Board Secretary to notify the City Clerk of such transfer pursuant to Section 343(d) of the City Charter at the time such transfer is made; (8) authorize the transfer of $9,148,155 to Account 13786 (Capitalized Fixed Asset Acquisition), Center 1800, Program 000 for the payment of the cost of the excess acreage owned by POLB in connection with this transaction; (9) adopt the Order and approve the draft Ordinance in substantial form and direct the Board Secretary to transmit the Order and Ordinance approving and authorizing the private exchange as described in the Master Agreement attached for approval pursuant to City Charter Section 385 and City Administrative Code Section 7.27; (10) approve the amended Tenancy In Common Agreement; (11) approve the Master Agreement; (12) approve the Quitclaim Deeds attached hereto as Transmittals 1-4 and authorize the Executive Director to execute and the Board Secretary to attest to the Quitclaim Deeds, Tenancy in Common Agreement, Master Agreement, and other ancillary documents required for these transfers upon approval by City Council; and (13) adopt Resolution No.______________.
Human Resources
6. RESOLUTION NO._____________ - REVISIONS TO THE CONFLICT OF INTEREST CODE
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of a resolution which would adopt a revised Conflict of Interest (COI) Code. Recognizing the need to update its current twenty-two year old COI Code, the Harbor Department requested assistance from the City Ethics Commission (CEC). Per the City Charter, Sec. 702(i), it is the responsibility of the CEC to assist departments in developing their COI Code as required by state law. Staff reviewed and accepted the changes recommended by the CEC. These changes serve to update the list of designated Harbor Department classifications which are required to disclose certain financial information. Staff also accepted updated disclosure categories provided by the CEC which are to be used throughout the City. As this action is primarily administrative in nature, the Harbor Department is not anticipated to be financially impacted by approval of the proposed resolution.
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) adopt the attached revised Conflict of Interest Code for the Harbor Department; (3) direct the Board Secretary to transmit the revised Conflict of Interest Code to the City Ethics Commission for submission to the City Council for approval; and (4) 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)
Harbor Performance Enhancement Center, LLC v. City of Los Angeles,
Los Angeles Superior Court Case No. 19STCP02431
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 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
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed sale of remnant surplus property to Los Angeles Bunker Surveyors, Inc.:
Property: Assessor ID Nos. 7418-032-912 and 7418-032-905, Wilmington
City Negotiator: Michael Galvin
Tenant Negotiator: Edward Chen
Negotiating Parties: City and Los Angeles Bunker Surveyors, Inc.
Under Negotiation: Price and Terms
6. 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)
7. 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: (two cases)
L. Adjournment