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
REGULAR MEETING AGENDA
THURSDAY, NOVEMBER 4, 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.
BOARD OF HARBOR COMMISSIONERS MEETING PROCEDURES FOR COVID-19
The following procedures are in place for the Board of Harbor Commissioners meeting as a precaution against the spread of COVID-19. Procedures may change as the situation changes so please review these procedures posted on the meeting agendas prior to the meeting taking place.
- The Port of Los Angeles Harbor Commission Board Room will NOT be accessible for public observance of the meeting or public comment pursuant to Assembly Bill 361 approved by Gov. Newsom on September 16, 2021.
- The Board of Harbor Commissioners will participate by video conference.
- Members of the public can observe the meeting via webcast at www.portoflosangeles.org
- Live Board meetings can also be heard at: (213) 621-2489 (Metro), (818) 904-9450 (Valley), (310) 471-2489 (Westside) and (310) 547-2489 (Harbor).
UPDATED INSTRUCTIONS TO PARTICIPATE IN PUBLIC COMMENT
- Members of the public can provide a live comment by calling (310) 732-3444. Commission Staff will be available to receive your call and provide Zoom meeting access information. If Commission Staff is not available to receive your call, please leave a voicemail at (310) 732-3444 with your name and your telephone number for a return call. Please note that phone call comments regarding Open Session can be accepted up until the item is considered by the Board.
- Each speaker is allowed to speak up to 3 minutes per agenda item. The Presiding Officer shall, however, exercise discretion to determine whether such period of time should be reduced or extended based upon such factors as the length of the agenda or substance of the agenda items, the number of public comment speaker cards submitted, the need for the Board to conclude its business as expeditiously as is practicable, and whether the Board is at risk of losing a quorum, among other factors. Upon request, non-English speakers will be granted additional speaking time for translation assistance.
- Written comments or materials may be submitted by emailing [email protected]. All written comments or materials submitted for this meeting will be provided to the Commissioners and entered into the official meeting minutes. Please submit your written comments prior to 4:00pm on the day before the scheduled meeting.
- NOTICE TO PAID REPRESENTATIVES - If you are compensated to monitor, attend, or speak at this meeting, City law may require you to register as a lobbyist and report your activity. See Los Angeles Municipal Code 48.01 et seq. More information is available at ethics.lacity.org/lobbying. For assistance, please contact the Ethics Commission at (213) 978-1960 or [email protected].
- As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities. Sign language interpreters, assistive listening devices, and translation services may be provided. To ensure availability, 72-hour advance notice is required.
- If you have any questions regarding these temporary meeting procedures, please contact the Harbor Commission Office prior to the meeting at (310) 732-3444.
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
G. Approval of the Minutes
- Special Meeting of October 21, 2021
- Special Meeting of October 29, 2021
H. Presentation
None.
I. Level I Coastal Development Permit
None.
J. Board Reports of the Executive Director
Regular Items (1 – 6)
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the proposed Third Amendment (Third Amendment) to Lease No. 915 (Lease) between the City of Los Angeles Harbor Department (Harbor Department) and San Pedro Public Market, LLC (SPPM). The Third Amendment proposed changes to the Lease includes, but is not limited to, the following: 1) approval of a new option period that would extend the entire option period; 2) approval of the development name change from San Pedro Public Market to West Harbor; 3) approval of five construction change order requests; 4) modification of the City Improvements section of the Lease to include reimbursement of costs for SPPM’s purchase of sewer pump station and electrical infrastructure equipment; 5) revisions to the assignment for security purposes section; and 6) incorporation of revised Exhibits, C-2, F-2, G(a) and H(a) which reflect modifications to maps and schedules. The Third Amendment is not anticipated to have an additional financial impact on the Harbor Department, as the Harbor Department will continue to be responsible for funding of $1,657,976 related to equipment and City Improvements.
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 proposed Third Amendment to Lease No. 915 with San Pedro Public Market, LLC; (3) direct the Board Secretary to transmit the Third 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 Third Amendment to Lease No. 915 upon approval by City Council; (5) authorize Executive Director to approve final loan documents; and (6) adopt Resolution No.____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No. 692 between the City of Los Angeles Harbor Department (Harbor Department) and Yusen Terminals, LLC (YTI). YTI operates a container terminal at Berths 212-224 and rear Berth 209. The Order will reset compensation to fair market rent for the five-year period from October 1, 2021 through September 30, 2026. The proposed Order would: (a) increase Minimum Annual Guaranteed (MAG) compensation by $24,435,902, or 15.8 percent, over a five-year period from $154,882,347 to $179,318,249; (b) increase annual fixed rent on 11.08 acres by $115,223, or 6.6 percent, from $1,751,500 for the year ended September 30, 2021 to $1,866,723 in Year 1 with 2 percent annual increases thereafter; (c) reduce annual storage and demurrage from $100,000 to $0; and (d) increase the Twenty-Foot Equivalent Unit (TEU) Rate by $0.30 from $129.58 to $129.88 to offset the storage and demurrage fee reduction. All other components of compensation will remain the same.
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 under Permit No. 692 with Yusen Terminals, LLC for the five-year period of October 1, 2021 through September 30, 2026; (3) authorize the Board Secretary to attest to the Order resetting compensation to be paid by Yusen Terminals, LLC under Permit No. 692; and (4) adopt Resolution No.___________.
Cargo Marketing
Summary: Staff requests approval of an amendment to Port of Los Angeles (Port) Tariff No. 4, (Tariff No. 4) approving, effective on January 1, 2022: (i) a rate increase of 9.4 and 11.8 percent applicable to the respective petroleum products; (ii) a note to the Merchandise Not Otherwise Specified (NOS) rate stating that any change in the Merchandise NOS rate shall be offset by any scheduled increase in the compensation section of a container terminal permit; (iii) a definition in Section 1 of Tariff No. 4 defining a “Scheduled Increase in Compensation”; and (iv) the deletion of rated tariff items which are no longer relevant. Staff estimates that the proposed petroleum products’ tariff increases will generate $326,292 in additional revenues during Fiscal Year (FY) 2022. The financial impact of the note added to the Merchandise NOS rate can be determined when an actual increase in that rate would take place.
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 1(31) of the Los Angeles City CEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4 adding a definition to Section One “Definitions”; increasing rates to Section Five “Wharfage”, Items 550-600 through 550-625; and deleting Item 550-650, Items 550-902 through 550-975, Items 560-001 through 560-975, and Item 1220 subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with the California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with the California Association of Port Authorities’ procedure; (3) adopt Temporary Order No.____________ to amend Port of Los Angeles Tariff No. 4 adding a definition to Section One “Definitions”; increasing rates to Section Five “Wharfage”, Items 550-600 through 550-625; and deleting Item 550-650, Items 550-902 through 550-975, Items 560-001 through 560-975, and Item 1220; (4) authorize the Board Secretary to certify the adoption of Temporary Order by the Board of Harbor Commissioners and cause the same to be published once in a newspaper printed and published in the City of Los Angeles, to take effect prior to adoption by Ordinance for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); and (5) adopt Resolution No.____________.
Cargo Marketing
Summary: Staff requests approval of an amendment to Port of Los Angeles (Port) Tariff No. 4, (Tariff No. 4) approving, effective on January 1, 2022: (i) a rate increase of 9.4 and 11.8 percent applicable to the respective petroleum products; (ii) a note to the Merchandise Not Otherwise Specified (NOS) rate stating that any change in the Merchandise NOS rate shall be offset by any scheduled increase in the compensation section of a container terminal permit; (iii) a definition in Section 1 of Tariff No. 4 defining a “Scheduled Increase in Compensation”; and (iv) the deletion of rated tariff items which are no longer relevant. A Temporary Order is also being proposed to allow time for the Permanent Order to be approved by the City Council. Staff estimates that the proposed petroleum products’ tariff increases will generate $326,292 in additional revenues during Fiscal Year (FY) 2022. The financial impact of the note added to the Merchandise NOS rate can be determined when an actual increase in that rate would take place.
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 1(31) of the Los Angeles City CEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4 adding a definition to Section One “Definitions”; increasing rates to Section Five “Wharfage”, Items 550-600 through 550-625;and deleting Item 550-650, Items 550-902 through 550-975, Items 560-001 through 560-975, and Item 1220; subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with the California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with the California Association of Port Authorities’ procedure; (3) adopt Permanent Order No.____________ to amend Port of Los Angeles Tariff No. 4 adding a definition to Section One “Definitions”; increasing rates to Section Five “Wharfage”, Items 550-600 through 550-625; and deleting Item 550-650, Items 550-902 through 550-975, Items 560-001 through 560-975, Item 1220; (4) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the Amendments to Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); (5) direct the Board Secretary to certify to the adoption of this Order by the Board of Harbor Commissioners and shall cause the same to be published in a daily newspaper printed and published in the City of Los Angeles; (6) after the effective date of the Ordinance, transmit the Permanent Order and Ordinance to the Executive Director or his nominee for implementation and posting to the Port of Los Angeles website as regulated by the Federal Maritime Commission; and (7) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of a Temporary Order to amend the Port of Los Angeles (POLA) Tariff No. 4 (Tariff), establishing new Item Nos. 2030 “Clean Truck Fund Rate” (CTF Rate) and 2035 “Clean Truck Fund” (CTF). The proposed Amendment will (i) authorize the CTF Rate at $10 per twenty-foot equivalent unit (TEU) ($20 if length is more than 20 feet) charged to cargo owners or their authorized Agent for loaded containers entering and exiting POLA terminals by drayage truck, (ii) create a full lifetime exemption for zero emission (ZE) trucks and a limited exemption for Low NOx trucks, and (iii) make clear that the CTF Rate is established to be paid by the cargo owner or its authorized Agent and not Drayage Truck Operators (drivers). The collected CTF Rate revenues will be held in the CTF, to be used to assist in incentivizing the replacement of older drayage trucks. Staff additionally requests approval of the CTF Spending Plan in this Resolution, which includes the 100% allocation of the CTF toward ZE trucks and infrastructure, which will be implemented through specific incentive programs with details to be brought back for the Board of Harbor Commissioners (Board) consideration in the future. Finally, miscellaneous related CTF Rate Definitions in Item No. 2000, and references to updated state laws applicable to drayage trucks in Item Nos. 2010 and 2041 were revised to provide the most recent information. All Tariff Items would be effective on April 1, 2022.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is statutorily and generally exempt from the requirements of the California Environmental Quality Act (CEQA) under Sections 15273, 15262, and 15061(b)(3) of the State CEQA Guidelines; (2) approve the Clean Truck Fund Rate Spending Plan in this Resolution; (3) approve amendments to the Port of Los Angeles Tariff No. 4, revising Section 20 Clean Air Action Plan, by adding new Item No. 2030 “Clean Truck Fund Rate,” new Item No. 2035 “Clean Truck Fund,” and revised Item Nos. 2000 “Definitions,” 2010 “Drayage Truck Access,” and 2041 “Drayage Truck Compliance,” subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with the California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with the California Association of Port Authorities’ procedure; (4) adopt Temporary Order No. __________ to amend the Port of Los Angeles Tariff No. 4, Section 20, Item Nos. 2030 “Clean Truck Fund Rate,” 2035 “Clean Truck Fund,” 2000 “Definitions,” 2010 “Drayage Truck Access,” and 2041 “Drayage Truck Compliance”; (5) authorize the Board Secretary to execute the Temporary Order by the Board of Harbor Commissioners and cause the same to be published once in a newspaper printed and published in the City of Los Angeles, to take effect prior to adoption by Ordinance for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); and (6) adopt Resolution No.___________.
Environmental Management
Summary: Staff requests approval of a Permanent Order to amend the Port of Los Angeles (POLA) Tariff No. 4 (Tariff), establishing new Item Nos. 2030 “Clean Truck Fund Rate” (CTF Rate) and 2035 “Clean Truck Fund” (CTF). The proposed Amendment will (i) authorize the CTF Rate at $10 per twenty-foot equivalent unit (TEU) ($20 if length is more than 20 feet) charged to cargo owners or their authorized Agent for loaded containers entering and exiting POLA terminals by drayage truck, (ii) create a full lifetime exemption for zero emission (ZE) trucks and a limited exemption for Low NOx trucks, and (iii) make clear that the CTF Rate is established to be paid by the cargo owner or its authorized Agent and not Drayage Truck Operators (drivers). The collected CTF Rate revenues will be held in the CTF, to be used to assist in incentivizing the replacement of older drayage trucks. Staff additionally requests approval of the CTF Spending Plan in this Resolution, which includes the 100% allocation of the CTF toward ZE trucks and infrastructure, which will be implemented through specific incentive programs with details to be brought back for the Board of Harbor Commissioners (Board) consideration in the future. Finally, miscellaneous related CTF Rate Definitions in Item No. 2000, and references to updated state laws applicable to drayage trucks in Items Nos. 2010 and 2041 were revised to provide the most recent information. All Tariff Items would be effective on April 1, 2022.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is statutorily and generally exempt from the requirements of the California Environmental Quality Act (CEQA) under Sections 15273, 15262, and 15061(b)(3) of the State CEQA Guidelines; (2) approve the Clean Truck Fund Rate Spending Plan in this Resolution; (3) approve amendments to the Port of Los Angeles Tariff No. 4, revising Section 20 Clean Air Action Plan, by adding new Item Nos. 2030 “Clean Truck Fund Rate,” new Item No. 2035 “Clean Truck Fund,” and revised Item Nos. 2000 “Definitions,” 2010 “Drayage Truck Access,” and 2041 “Drayage Truck Compliance,” subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with the California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with the California Association of Port Authorities’ procedure; (4) adopt Permanent Order No. __________ to amend the Port of Los Angeles Tariff No. 4, Section 20, Item Nos. 2030 “Clean Truck Fund Rate,” 2035 “Clean Truck Fund,” 2000 “Definitions,” 2010 “Drayage Truck Access,” and 2041 “Drayage Truck Compliance”; (5) direct the Board Secretary to transmit to the City Council for approval of the Permanent Order and the Ordinance approving the amendments to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); (6) direct the Board Secretary to transmit to the City Clerk a Notice of Public Hearing for publication in accordance with the provisions of California Government Code sections 66018 and 6062a; (7) authorize the Board Secretary to execute the Permanent Order and Ordinance amending the Port of Los Angeles Tariff No. 4 as stated above, and, upon its publication, transmit the Order and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website; and (8) adopt Resolution No.___________.
K. Closed Session
1. 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)
2. 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)
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed permit with Cabrillo Way Partners:
Property: 2293 S. Miner Street, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Joe Ueberroth
Negotiating Parties: City and Cabrillo Way Partners
Under Negotiation: Price and Terms
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 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