Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
SPECIAL MEETING AGENDA
THURSDAY, SEPTEMBER 23, 2021 AT 9:00 AM
Board of Harbor Commissioners
President Jaime L. Lee
Vice President Edward R. Renwick
Commissioner Diane L. Middleton
Commissioner Lucia Moreno-Linares
Commissioner Anthony Pirozzi, Jr.
ORDER OF BUSINESS
OPEN SESSION
A. Roll Call
B. Executive Director Remarks
C. Comment 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
- Audit Committee Meeting of September 16, 2021
- Intermodal Container Transfer Facility – Joint Powers Authority Meeting of September 9, 2021
G. Approval of the Minutes
- Special Meeting of August 19, 2021
- Regular Meeting of September 2, 2021
H. Presentation
1. Retirements
I. Level I Coastal Development Permit
None.
J. Board Reports of the Executive Director
Consent Items (1 - 5)
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the proposed Third Amendment to Permit No. 708 (Permit 708) with Kinder Morgan Tank Storage Terminals LLC (Kinder Morgan) to allow continued operation of the marine oil terminal at Berths 118-119 until April 13, 2024, and to restore and surrender the site to the City of Los Angeles Harbor Department (Harbor Department) on or before April 13, 2025. Kinder Morgan has requested authorization to build a Marine Oil Terminal Engineering & Maintenance Standards (MOTEMS) compliant wharf at Berth 120 and cease use of the current non-MOTEMS compliant wharf at Berth 118 thereafter. Staff informed Kinder Morgan that the Harbor Department is currently unable to determine if Berth 120 will be available due to ongoing negotiations with adjacent tenants. However, the Harbor Department will be in a better position to make such determination in two years. The California State Lands Commission (CSLC) has authorized Kinder Morgan to continue operating at Berths 118 for two years, until the Harbor Department is able to make a determination of availability of Berth 120. Should the Harbor Department determine that Berth 120 is not available for construction of a new wharf, Kinder Morgan will be required to cease operations and begin remediation of Berths 118 and 119 pursuant to the Settlement Agreement and the First Amendment to Permit No. 708. All maintenance and repair costs associated with the terminal and wharf, including all costs for MOTEMS compliance, are borne by Kinder Morgan during the term of Permit No. 708.
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 Permit No. 708 with Kinder Morgan Tank Storage Terminals, LLC; (3) direct the Board Secretary to transmit the Third Amendment to the City Council for approval pursuant to the Charter Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Third Amendment to Permit No. 708 with Kinder Morgan Tank Storage Terminals, LLC upon approval by City Council; and (5) adopt Resolution No.____________.
Goods Movement
Summary: Staff requests that the Board of Harbor Commissioners adopt a Resolution approving and providing mutual agreement, via a “Notice of Mutual Agreement” (NMA), of the amendments of the Alameda Corridor Transportation Authority’s (ACTA) Dispatching Agreement, and Police and Security Services Agreement (collectively referred to as Agreements). The Alameda Corridor (AC) Use and Operating Agreement (UOA) requires ACTA to have these particular Agreements for the operations of the AC. The UOA also requires that the City of Los Angeles Harbor Department (Harbor Department), Port of Long Beach (POLB), BNSF Railway (BNSF), and Union Pacific Railroad (UPRR) collectively select the AC train operations dispatcher and security provider via an NMA. The NMA enables ACTA to proceed to enter into subsequent agreements for these services with the UPRR and BNSF (and/or other selected entities), subject to approval by its own board. These two ACTA Agreements expire on October 14, 2021. This NMA will enable ACTA to extend the term of the Dispatching Agreement by six months, to April 14, 2022, and the term of the Security Services Agreement by one year to October 14, 2022. The POLB, UPRR, and BNSF are expected to approve the NMA before October 14, 2021. There are no financial impacts to the City of Los Angeles Harbor Department if this NMA is approved and the ACTA Agreements are amended.
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 NMA 2021-3 that approves the amendment of the ACTA Dispatching Agreement to extend the term for up to an additional six months, to April 14, 2022; (3) approve NMA 2021-4 that approves the amendment of the ACTA Police and Security Services Agreement to extend the term for up to one year, to October 14, 2022; (4) direct the Executive Director to transmit this Resolution to ACTA for further action pursuant to the Amended and Restated Alameda Corridor Use and Operating Agreement; and (5) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of a proposed Second Amendment to Funding Agreement No. 15-3362 between Chevron Environmental Management Company (Chevron) and the City of Los Angeles Harbor Department (Harbor Department). The proposed Second Amendment extends the term of Agreement No. 15-3362 by an additional three years and increases the contract amount by $228,207. The proposed Second Amendment continues to provide a convenience to one of the Harbor Department’s tenants, West Basin Container Terminals (WBCT), by allowing one of the Harbor Department’s as-needed consultants to conduct sampling and monitoring activities required of Chevron by the Los Angeles Regional Water Quality Control Board (LARWQCB). Chevron is financially responsible for all work performed by the Harbor Department’s as-needed consultant on its behalf, and Chevron continues to be responsible for any and all continuing requirements set forth by the LARWQCB.
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 Article III Class 6(2) of the Los Angeles City CEQA Guidelines; (2) approve the Second Amendment to Funding Agreement No. 15-3362 between the City of Los Angeles Harbor Department and Chevron Environmental Management Company, a corporation, for $228,207 and extending the term by three years; (3) authorize the Executive Director to execute and the Board Secretary to attest to, said Second Amendment for and on behalf of the Board; and (4) adopt Resolution No.____________.
Environmental Management
Summary: Staff request approval of the First Amendment to Agreement No. 17-3509 (Agreement) with AMEC Foster Wheeler Environment & Infrastructure, Inc. to reflect the company name change to Wood Environment & Infrastructure Solutions, Inc. The Agreement was approved by the Board of Harbor Commissioners (Board) on November 28, 2017, to conduct the City of Los Angeles Harbor Department (Harbor Department) share of the 2018 Biological Surveys of Los Angeles and Long Beach Harbors. This action is solely administrative in nature to reflect the company name change. All other terms and conditions of the Agreement remain unchanged. The Harbor Department will continue to be responsible for expenses under this 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 First Amendment to Agreement No. 17-3509 to reflect the company name change from AMEC Foster Wheeler Environment & Infrastructure, Inc. to Wood Environment & Infrastructure Solutions, Inc.; (3) authorize the Executive Director and the Board Secretary to execute and attest to said First Amendment to Agreement No. 17-3509 for and on behalf of the Board; and (4) adopt Resolution No.____________.
Accounting
Summary: Staff requests the Board of Harbor Commissioners’ (Board) approval of the Second Amendment (Transmittal 1) to Agreement No. 16-3418 (Agreement) with Citibank, National Association (Citibank) which provides Travel Payment System (TPS) services to the City of Los Angeles Harbor Department (Harbor Department). The Harbor Department’s Agreement No. 16-3418 piggybacks on the State of California’s (State) Agreement No. 5159906 with Citibank. The proposed Second Amendment will extend the term of the Harbor Department’s Agreement with Citibank from November 1, 2021 through October 31, 2023. This Second Amendment will continue to cover the Harbor Department’s program for charge cards utilized by staff towards business and travel services in accordance with existing City of Los Angeles travel policies and procedures. The Harbor Department will continue to be financially responsible for expenses incurred under the proposed Second 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) find that in accordance with the Los Angeles City Charter Section 1022, the services required can be performed more feasibly by an outside contractor than by City employees; (3) approve the proposed Second Amendment (Transmittal 1) to Harbor Department Agreement No. 16-3418 between the Harbor Department and Citibank, National Association; (4) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Second Amendment; and (5) adopt Resolution No.___________.
Regular Items (6 - 9)
Environmental Management
Summary: Staff requests approval of the proposed Second Amendment to Agreement No. 16-3431 between the City of Los Angeles Harbor Department (Harbor Department) and Tetra Tech, Inc. (Tetra Tech). Tetra Tech currently provides concession, grant administration, and support services for the Clean Truck Program (CTP) at the Port of Los Angeles (Port). This action will amend Agreement No. 16-3431 as follows: extend the term by two additional years (for a total of seven years), modify the Scope of Work, update billing rates, and add $1,500,000 in total compensation. CTP expenditures are offset each year by CTP Concession Application Fees, Annual Truck Fees, and Day Pass Fees, which have averaged approximately $2,000,000 in revenue annually. The Harbor Department is financially responsible for payment of the expenses incurred under the proposed Second Amendment.
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 Article III, Class 6(2) of the Los Angeles City CEQA Guidelines; (2) approve the Second Amendment to Agreement No. 16-3431 with Tetra Tech, Inc. for Clean Truck Program Administration Services; (3) direct the Board Secretary to transmit the Second Amendment to the City Council for approval pursuant to City Charter Section 606; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Second Amendment for and on behalf of the Board; and (5) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests adoption of the Final Initial Study/Mitigated Negative Declaration (IS/MND) for the proposed Berth 163-164 [NuStar-Valero] Marine Oil Terminal Wharf Improvements Project (Project) along with comments and responses to comments, and approval of the proposed Project as described in the Final IS/MND. The primary objective of the proposed Project is to allow compliance with the State of California’s Marine Oil Terminal Engineering and Maintenance Standards (MOTEMS) at the marine oil terminal currently at Berth 163 (Shore Terminals, LLC, (Shore Terminals) a subsidiary of NuStar Energy L.P.). The proposed Project also includes the issuance of 30-year leases to Shore Terminals (NuStar) and to Ultramar, Inc., (Ultramar) a subsidiary of Valero Energy Corporation. Shore Terminals and Ultramar are financially responsible for staff and consultant time used for the preparation of the Final IS/MND, under Reimbursement Agreement No. 20-3719, as well as the construction of the proposed Project.
Recommendation: Board resolve to (1) find that, pursuant to the State California Environmental Quality Act (CEQA) Guidelines Section 15074, the Final Initial Study/Mitigated Negative Declaration for the proposed Berth 163-164 [NuStar-Valero] Marine Oil Terminal Wharf Improvements Project (a) has been completed in compliance with the State CEQA Guidelines and the Los Angeles City CEQA Guidelines; (b) was presented to the Board of Harbor Commissioners for review and was reviewed and considered by the Board of Harbor Commissioners 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/Mitigated Negative Declaration for the proposed Berth 163-164 [NuStar-Valero] Marine Oil Terminal Wharf Improvements Project, the 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/Mitigated 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 Mitigation Monitoring and Reporting Program (MMRP) contained in the Final Initial Study/Mitigated Negative Declaration as required by Public Resources Code Section 21081.6 and State California Environmental Quality Act Guidelines Section 15074. The MMRP is designed to ensure compliance with the mitigation measures adopted to mitigate or avoid significant effects on the environment, and identifies the responsibilities of the City of Los Angeles Harbor Department as lead agency and other applicable entities, to monitor and verify project compliance with those mitigation measures and conditions of project approval; (5) adopt the Final Initial Study/Mitigated Negative Declaration for the Berth 163-164 [NuStar-Valero] Marine Oil Terminal Wharf Improvements Project; (6) authorize the Environmental Management Division to file the Notice of Determination for the Berth 163-164 [NuStar-Valero] Marine Oil Terminal Wharf Improvements Project with the Los Angeles County Clerk; and (7) adopt Resolution No.____________.
Engineering
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve a funding agreement (referred herein as the Baseline Agreement (BA) – Transmittal 1) with the California Transportation Commission (CTC) and California Department of Transportation (Caltrans) for $19,194,000 of Trade Corridor Enhancement Program (TCEP) funds for the Berths 302-305 On-Dock Railyard Project. To receive the TCEP funds, the Harbor Department must enter into the proposed BA with the CTC and Caltrans. Upon approval by the Board, the Harbor Department will transmit the BA to the CTC for final approval, which is expected to occur at its December 2021 meeting. The Harbor Department is financially responsible for matching funds as part of the BA.
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 requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(i) of the Los Angeles City CEQA Guidelines; (2) approve the Berths 302-305 On-Dock Railyard Project Baseline Agreement; (3) authorize the Executive Director to execute and the Board Secretary to attest to said agreement, for and on behalf of the Board; (4) authorize the Executive Director to execute future Baseline Agreement Amendments to account for revised project schedules, and/or reduced project costs, for and on behalf of the Board, subject to the approval of the City Attorney as to form and legality; and (5) adopt Resolution No.___________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Sublease between AltaSea at the Port of Los Angeles (AltaSea) and Signal Street Operating, LLC, a Delaware limited liability company (Signal Street or SSO), in accordance with Section 13.4.1(f) of Lease No. 904A (Lease) with AltaSea. The proposed Sublease is further described in the Transfer Notice letter submitted by AltaSea to the Department in July 2021. Signal Street is proposing to sublease warehouse rooftop space at Berths 58 through 60 in order to construct and operate a solar facility for a feed-in-tariff power supply with the Los Angeles Department of Water and Power (LADWP) with an estimated power production of two megawatts. The Sublease has a term of 20 years, with two options to extend for five-years each, for a total potential term of thirty years. Additionally, in accordance with Section 13.4.2 of the Lease, AltaSea has requested the City of Los Angeles Harbor Department (Harbor Department) to enter into a Non-Disturbance and Attornment Agreement (Non-Disturbance Agreement) between the Harbor Department and Signal Street.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is statutorily, administratively, and categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Section 21080.35(a) of the State of California CEQA Guidelines, Article II Section 2(f) of the Los Angeles City CEQA Guidelines, and Article III Class 1(14) of the Los Angeles City CEQA Guidelines; (2) approve the Sublease between AltaSea at the Port of Los Angeles and Signal Street Operating, LLC; (3) approve the Non-Disturbance and Attornment Agreement between the City of Los Angeles Harbor Department and Signal Street Operating, LLC; (4) direct the Board Secretary to transmit the Non-Disturbance and Attornment 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; (5) authorize the Executive Director to execute and the Board Secretary to attest to the Non-Disturbance and Attornment Agreement upon approval by City Council; and (6) adopt Resolution No.____________.
K. Closed Session
1. 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
2. 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.
San Diego Superior Court Case No. 37-2021-00023385-CU-TT-CTL
3. 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:
(two cases)
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 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
6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Lease 915 with San Pedro Public Market LLC:
Property: Berths 74-83, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Eric Johnson
Negotiating Parties: City and San Pedro Public Market LLC
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 900 with WWL Vehicle Services Americas, Inc.:
Property: 500 East Water Street, Wilmington
City Negotiator: Marisa Katnich
Tenant Negotiator: Peter Bresnee
Negotiating Parties: City and WWL Vehicle Services Americas, 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 Permit 692 with Yusen Terminals, LLC:
Property: Berths 212-223, Terminal Island
City Negotiators: Michael DiBernardo, Marisa Katnich
Tenant Negotiator: Alan McCorkle
Negotiating Parties: City and Yusen Terminals, LLC
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 San Pedro Fish Market:
Property: Berths 93C, D, E, San Pedro
City Negotiator: Eugene D. Seroka
Tenant Negotiator: Michael Ungaro
Negotiating Parties: City and San Pedro Fish Market
Under Negotiation: Price and Terms
L. Adjournment