Harbor Commission

 

 

 
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
 

• Alameda Corridor Transportation Authority Governing Board Special Meeting of October 29, 2020

  
G.        Approval of the Minutes
 

• Regular Meeting of October 1, 2020

 

• Regular Meeting of October 15, 2020

 
H.        Presentation
 
            None
 
I.          Level I Coastal Development Permit
 
            The Executive Director has issued one (1) emergency Level I CDP:
 
            CDP No. 20-07           Emergency Work to Demolish the Main Building at Berth 44
 
 
J.         Board Reports of the Executive Director
 
Consent Items (1 - 4)
   
1.         RESOLUTION NO. ____________ - FIRST AMENDMENT TO AGREEMENT NO. 20-3759 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND NOSSAMAN LLP FOR REAL ESTATE MATTERS
 
Transmittal 1
Transmittal 2
 
Summary: The Office of the City Attorney (Office) requests the Board of Harbor Commissioners (Board) approve a First Amendment to Agreement No. 20-3759  (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Nossaman, LLP (Nossaman) for legal services for real estate matters related to newly adopted Committee on Foreign Investment in the United States (CFIUS) regulations.  The proposed First Amendment is to increase the compensation authority by $25,000 for a new total authority of $75,000. The current term of the Agreement is July 13, 2020 to July 12, 2023 and there is no proposed term extension.  The additional funds will allow Nossaman to review and analyze unanticipated complex issues related to ownership interests and structures for multiple terminal operators in the Port of Los Angeles.  The Harbor Department is financially responsible for payment for legal services rendered under the proposed First 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 First Amendment to Agreement No. 20-3759 with Nossaman increasing the authority by $25,000, for a total of $75,000; (3) authorize the Executive Director and Board Secretary to execute and attest to the First Amendment to Agreement No. 20-3759; and (4) adopt Resolution No.____________.
   
2.         RESOLUTION NO. ____________ - SECOND AMENDMENT TO AGREEMENT NO. 15-3308 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND MEYERS NAVE RIBACK SILVER & WILSON
 
Transmittal 1
Transmittal 2
Transmittal 3
 
Summary: The Office of the City Attorney (City Attorney) requests approval of a Second Amendment to Agreement No. 15-3308 between the City of Los Angeles Harbor Department (Harbor Department) and the law firm of Meyers Nave Riback Silver & Wilson (Meyers Nave). The proposed Second Amendment will extend the term of the Agreement by five years and increase the Agreement authority by $1,044,242. The current six-year Agreement expires on February 28, 2021. The proposed Amendment would extend the term of the Agreement by five years to a proposed eleven years and expiration date of February 28, 2026. The current Agreement authority is $3,040,000 and the proposed Amendment would increase the authority to $4,084,242. The extension and additional funding will allow Meyers Nave to perform all legal services necessary to fully defend the Port of Los Angeles and the City of Los Angeles from claims of violations of the law and improper actions with respect to the China Shipping Terminal located at Berths 97-104. The City of Los Angeles Harbor Department (Harbor Department) is financially responsible for payment of expenses under the proposed 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 Second Amendment to Agreement No. 15-3308 with Meyers Nave, extending the term of the Agreement by five years, for a total term of eleven years (March 1, 2015 to February 28, 2026); (3) approve the Second Amendment to Agreement No. 15-3308 with Meyers Nave, increasing the authority by $1,044,242, for a total authority of $4,084,242; (4) authorize and Direct the Board Secretary to forward the Second Amendment to the Los Angeles City Council for its approval pursuant to Section 373 of the Los Angeles City Charter and Section 10.5 of the Los Angeles City Administrative Code; (5) authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment to Agreement No.15-3308; and (6) adopt Resolution No._____________.
   
3.         RESOLUTION NO. ____________ - ADOPTION OF THE 2021 BOARD OF HARBOR COMMISSIONERS MEETING CALENDAR
Recommendation: Board resolve to (1) adopt Subject Resolution No.____________.
   
4.         RESOLUTION NO. ____________ - APPROVAL OF HARBOR COMMUNITY BENEFIT FOUNDATION’S COMMUNITY BENEFIT GRANT PROGRAM, ROUND 7 SELECTION OF FOUR PROJECTS TO RECEIVE GRANT AWARDS AND THE  TRANSFER OF PORT COMMUNITY MITIGATION TRUST FUNDS
 
Transmittal 1
 
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve Harbor Community Benefit Foundation’s (HCBF) selection of four projects to receive awards from the Community Benefit Grant Program, Round 7 and transfer $209,169 from the Port Community Mitigation Trust Fund (PCMTF) to HCBF. The PCMTF was established by the City of Los Angeles Harbor Department (Harbor Department) for the purpose of funding appropriate mitigation projects and grants addressing port-related impacts for the communities of San Pedro and Wilmington. The HCBF, an independent nonprofit organization established to operate the PCMTF, is responsible for identifying qualifying projects to receive grant funding from the PCMTF to be approved by the Board. The HCBF Board of Directors has selected four projects to receive funding for the seventh round of the Community Benefit Grant Program, and is requesting Board approval of the award recipients and transfer of funds from the PCMTF, in accordance with the requirements of the TraPac Memorandum of Understanding (MOU) and Operating Agreement of the TraPac MOU (Operating Agreement). The proposed projects have a Tidelands nexus and will mitigate, reduce and address the Port of Los Angeles’ (Port) impact on the local communities of Wilmington and San Pedro.  Upon approval, $209,169 will be transferred from the PCMTF to HCBF for four total grant awards. Upon the transfer of funds from the PCMTF to HCBF, HCBF will be financially responsible for the proposed projects and for the disbursement of funds to grantees in accordance with the TraPac MOU, Operating Agreement and the Grant Agreements. The Harbor Department funded the original PCMTF, but no additional payments from the Harbor Department will be required to fund this request.
 
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’s selection of four projects to receive awards from the Community Benefit Grant Program Round 7, funded by the Port Community Mitigation Trust Fund; (3) authorize the Executive Director or his designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the distribution of funds in one lump sum payment of $209,169 from J.P. Morgan Private Bank to the Harbor Community Benefit Foundation to be used in accordance with Harbor Community Benefit Foundation’s request; and (4) adopt Resolution No.___________.

Regular Items (5 - 7)  
5.         RESOLUTION NO. ____________ - ADOPTION OF THE FINAL INITIAL STUDY/NEGATIVE DECLARATION AND APPROVAL OF THE INNOVATIVE NEW DOCK CHASSIS DEPOT AT 960 NEW DOCK ST (LOS ANGELES HARBOR DEPARTMENT APPLICATION FOR PORT PERMIT NO. 190222-020;STATE CLEARINGHOUSE NO. 2020090061)
 
Transmittal 1
 
Summary: Staff requests adoption of the Final Initial Study/Negative Declaration (IS/ND) for the proposed Innovative New Dock Chassis Depot Project (Project) along with comments and responses to comments, and approval of the proposed Project as described in the Final IS/ND. The proposed Project would permit the expanded operation of a chassis depot that provides storage, maintenance, repair of chassis, and on/off hire of chassis (i.e., stop/start operations) at 960 New Dock Street on Terminal Island. Innovative Terminal Services, Inc. (Innovative) proposes to expand the existing approximately 10-acre property to a total of approximately 15.3 acres. A Term Permit would be issued for the operation of the proposed chassis maintenance yard and depot for up to 10 years in order to combine all Innovative-entitled parcels under one permit. Payment of the costs associated with the Final IS/ND is the responsibility of Innovative under Reimbursement Agreement No. E-7075 with the City of Los Angeles Harbor Department (Harbor Department).
 
Recommendation: Board resolve to (1) find that, pursuant to the State California Environmental Quality Act (CEQA) Guidelines Section 15074, the Final Initial Study/Negative Declaration for the proposed Innovative New Dock Chassis Depot Project at 960 New Dock Street, (a) has been completed in compliance with the State CEQA Guidelines and the Los Angeles City CEQA Guidelines; (b) was presented to the Board for review and was reviewed and considered by the Board prior to approving the proposed Project; and (c) reflects the independent judgment and analysis of the City of Los Angeles Harbor Department as the Lead Agency; (2) find that, based on the whole record before it, including (a) the information contained in this report and (b) the Final Initial Study/Negative Declaration for the Innovative New Dock Chassis Depot Project at 960 New Dock Street, the proposed Project would not have a significant effect on the environment pursuant to Public Resources Code Section 21080 and State California Environmental Quality Guidelines Section 15070; (3) find that all information added to the Final Initial Study/Negative Declaration after the public review period, but before adoption, merely clarifies, amplifies, or makes insignificant modifications, and that recirculation is not necessary; (4) adopt the Final Initial Study/Negative Declaration for the Innovative New Dock Chassis Depot Project at 960 New Dock Street; (5) approve the Innovative New Dock Chassis Depot Project at 960 New Dock Street, in consideration of the Final Initial Study/Negative Declaration, including comment letters received and the responses to comments; (6) authorize the City of Los Angeles Harbor Department to file the Notice of Determination for the Innovative New Dock Chassis Depot Project at 960 New Dock Street with the Los Angeles City and County Clerks; and (7) adopt Resolution No.____________.
  6.         RESOLUTION NO. ___________ - APPROVE NINTH AMENDMENT TO PERMIT NO. 520 WITH LA SKY HARBOR, LLC
 
Transmittal 1
Transmittal 2
 
Summary: Staff requests approval of the proposed Ninth Amendment to Permit No. 520 (P520) with LA Sky Harbor, LLC (LASH), dba DoubleTree by Hilton Hotel San Pedro (DoubleTree SP). P520 became effective July 1, 1987 with a predecessor tenant and has an expiration date of November 26, 2046. P520 has been assigned multiple times prior to LASH’s assumption of the permit effective February 27, 2013. Due to the current COVID-19 pandemic, DoubleTree SP has experienced significant occupancy reductions as a result of local, state, and federal government orders, as well as international travel restrictions, which has impacted LASH’s ability to pay rent. The proposed Ninth Amendment will revise P520 to allow for minimum rent deferral including rent deferral term, rent deferral period(s), and repayment period. Under the proposed Amendment, LASH’s fixed minimum rent would be deferred for up to twelve months, while percentage rent would continue to be paid.  The actual amount deferred each month would be the difference between that month’s percentage rent and LASH’s contractually-guaranteed monthly minimum rent.  The total deferred amount would be paid back over a one-year period in equal monthly payments. Approval of the Ninth Amendment will result in a total minimum rent deferral amount estimated at between $60,000 and $180,000 from July 1, 2021 to June 30, 2022.
 
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 it is in the best interest of the City of Los Angeles to grant deferral of minimum rent under the Ninth Amendment to Permit No. 520, as the City of Los Angeles Harbor Department derives substantial long-term economic benefits from the operation of a successful first-class hotel; (3) approve the Ninth Amendment to Permit No. 520 with LA Sky Harbor, LLC; (4) direct the Board Secretary to transmit the Ninth Amendment to Permit No. 520 to the City Council for approval pursuant to Section 606 of the City Charter; (5) authorize the Executive Director to execute and the Board Secretary to attest to the Ninth Amendment to Permit No. 520 upon approval by the City Council; and (6) adopt Resolution No.____________.  
7.        RESOLUTION NO. ____________ - APPROVE SECOND AMENDMENT TO LEASE NO. 915 WITH SAN PEDRO PUBLIC MARKET, LLC
 
Transmittal 1
 
Summary: Staff requests approval of the Second Amendment to Lease No. 915 (Lease) between the City of Los Angeles Harbor Department (Harbor Department) and San Pedro Public Market, LLC (SPPM).   As a result of the ongoing and continued effects of the COVID-19 pandemic on the retail, dining, and entertainment sectors of commercial real estate from a tenant and financing perspective, revisions to development milestones are required.  The purpose of the Second Amendment is to align the Lease with updated elements.  The proposed Second Amendment would: (i) add two new option periods which would extend the entire period; (ii) require substantial completion notice for specific phases; (iii) define and require delivery notices for specific phases; and (iv) modify performance responsibilities. The proposed Second Amendment is not anticipated to have a financial impact on the Harbor Department.
 
Recommendation: Board resolve to (1) 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) under Article II Class 2(i) of the Los Angeles City CEQA Guidelines; (2) approve the proposed Second Amendment to Lease No. 915 with San Pedro Public Market, LLC; (3) direct the Board Secretary to transmit the Second Amendment to Lease No. 915 to the City Council pursuant to Charter Section 607; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment to Lease No. 915 upon approval by City Council; and (5) adopt Resolution No.____________.
 
K.        Closed Session
 
1.         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
 
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)
 
            Harbor Performance Enhancement Center, LLC v. City of Los Angeles Harbor Department, et al., United States District Court Case No. 2:20-cv-03251
 
 
4.         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
 
 
5.         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. 20STCP02978
 
 
6.         CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
            (Subdivision (d)(1) of Government Code Section 54956.9)
 
            South Coast Air Quality Management District v. City of Los Angeles, et al.
            Los Angeles Superior Court Case No. 20STCP02985
 
7.         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
 
8.         CONFERENCE WITH REAL PROPERTY NEGOTIATORS
            (Government Code Section 54956.8)
 
            Provide instructions to its real estate negotiators with respect to Permit 896 with Crafted at the Port of Los Angeles:
 
            Property:                                Warehouses 9 and 10, San Pedro
 
            City Negotiator:                     Michael Galvin
 
            Tenant Negotiator:               Wayne Blank
 
            Negotiating Parties:             City and Crafted at the Port of Los Angeles
 
            Under Negotiation:               Price and Terms
 
9.         CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
            (Subdivision (d)(2) of Government Code Section 54956.9)
 
            Significant exposure to litigation pursuant to subdivision (d)(2) of Section 54956.9:
            (one case)
 
L.         Adjournment