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, DECEMBER 2, 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
None.
G. Approval of the Minutes
- Regular Meeting of November 4, 2021
H. Presentation
- Retirements
I. Level I Coastal Development Permit
None.
J. Board Reports of the Executive Director
Consent Items (1 – 7)
Commission Office
Recommendation: Board resolve to (1) adopt subject Resolution No.____________.
Environmental Management
Summary: Staff requests approval of the proposed multi-party Agreement between the City of Los Angeles Harbor Department (Harbor Department), Appellants of the TraPac Environmental Impact Report (Appellants), and the Harbor Community Benefit Foundation (HCBF) to transfer the remaining interest funds from the TraPac Memorandum of Understanding (TraPac MOU) of at least $270,000 and any interest from the TraPac MOU Fund Account to the Port Community Mitigation Trust Fund (PCMTF). In addition, Staff requests authorization to transfer the $270,000 plus approximately $129,038 in additional discovered accrued interest from Harbor Department TraPac MOU accounts to the PCMTF. This action will close out the TraPac MOU Fund account held by the Harbor Department. HCBF will administer the additional funds in the PCMTF on behalf of the Appellants.
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 Agreement between the City of Los Angeles Harbor Department, the Appellants of the TraPac Environmental Impact Report and Harbor Community Benefit Foundation to transfer at least $270,000 and any interest generated to the Harbor Community Benefit Foundation for administration; (3) authorize the Executive Director to execute and Board Secretary to attest to said Agreement for and on behalf of the Board of Harbor Commissioners; (4) authorize the Board Secretary to transmit said Agreement to the Los Angeles City Council for approval in accordance with Charter Section 373 and Los Angeles Administrative Code Section 10.5(a); (5) upon the approval of City Council in accordance with Los Angeles Administrative Code Section 10.5(a), authorize the Executive Director to execute and the Board Secretary to attest to said Agreement with the Appellants of the TraPac Environmental Impact Report and Harbor Community Benefit Foundation for and on behalf of the Board after approval by City Council; (6) authorize the Executive Director or designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the deposit of funds in one lump sum payment of at least $399,038 ($270,000 and approximately $129,038 of additional past accrued interest) and execute any other joint letters with the Harbor Community Benefit Foundation for subsequent payments due to trailing interest from the City of Los Angeles Harbor Department to JP Morgan Private Bank, which will close out the TraPac MOU Fund; and (7) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of the proposed Fourth Amendment to Agreement No. 16-3395 between the City of Los Angeles Harbor Department (Harbor Department) and the California Air Resources Board (CARB) to update funding among tasks, revise the schedule of milestones, and extend the term of the Green Omni Terminal Project (Project) at Pasha Stevedoring & Terminals L.P. (Pasha) through December 29, 2023. The grant funding amount will not change. Approval is also requested for the proposed First Amendment to Subrecipient Agreement No. 21-9812 with Pasha for this Project to reflect the changes in the Grant Agreement. The Harbor Department will continue to be financially responsible for staff time under this grant.
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 Fourth Amendment to Agreement No. 16-3395 with the California Air Resources Board to update funding among tasks, update the schedule of milestones, and extend the term to December 29, 2023, for the Green Omni Terminal Project; (3) approve the First Amendment to Agreement No. 21-9812 with Pasha Stevedoring & Terminals L.P. to update funding among tasks, update the schedule of milestones, and extend the term to December 29, 2023; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Amendments for and on behalf of the Board; and (5) adopt Resolution No.____________.
Cargo Marketing
Summary: Staff requests approval of a revised and updated California Association of Port Authorities (CAPA) Federal Maritime Commission (FMC) Agreement (Agreement) between the City of Los Angeles Harbor Department (Port) and other CAPA Member Ports to enable the parties to discuss fostering economic growth and providing greater economic benefits to Member Ports and the public. The proposed FMC Agreement contains various changes from the existing CAPA FMC Agreement No. 224-007345 that are designed to modernize and streamline the agreement and to remove administrative provisions better suited for a separate document for CAPA’s bylaws. The FMC filing fee associated with this Agreement is the financial responsibility of CAPA and would be borne as an administrative expense.
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 California Association of Port Authorities Federal Maritime Commission Agreement between the City of Los Angeles Harbor Department and other CAPA Member Ports, as listed on the 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 approve the proposed California Association of Port Authorities Bylaws on behalf of the Board; and (5) adopt Resolution No.____________.
Cargo Marketing
Summary: Staff requests approval of a fourth Temporary Order to amend (Amendment) Port of Los Angeles (Port) Tariff No. 4 (Tariff) Section Twenty-Three, “Incentives - General Rules and Regulations”, Item No. 2325 “Ocean Common Carrier Incentive Program.” The proposed amendment removes the “but not zero” container volume reference in the Qualifying Year period of the Ocean Common Carrier (OCC) Incentive program (Program), retroactive to September 1, 2018, and removes the qualifying year as an eligibility requirement effective April 1, 2021. Removing the qualifying year requirement would adjust the program in response to the unforeseen COVID-related decrease in container volume during Fiscal Year (FY) 2020. The “but not zero” container volume reference in the Qualifying Year did not consider OCCs that had not brought any container volume to the Port in the two years preceding their arrival, nor did it recognize OCCs that had very limited market participation and then dramatically increased container volumes through the Port, effectively “New Market Entrants”. Eligible OCCs can earn a financial incentive that could amount to $10.00 per incremental Twenty-foot Equivalent Units (TEU) and a maximum payout of $2,000,000 per OCC per Incentive Period as stated in Tariff No. 4 Item No. 2325. Payouts to OCCs earned under the terms of the proposed OCC Incentive Program are the financial responsibility of the Harbor Department. Changes in the Tariff require City Council approval. At the May 6, 2021, Board of Harbor Commissioners (Board) meeting, the Board approved a Temporary and Permanent Order amending Port Tariff No. 4 Item No. 2325. Second and third Temporary Orders were approved at the June 17th and September 2nd Board meetings, respectively, to allow additional time for the Permanent Order to pass through the City Council approval process. The City Council has yet to calendar and approve the Permanent Order and Ordinance. Therefore, a fourth Temporary Order is needed. The fourth Temporary Order, if approved, will expire in 90 days after the day it is published or upon execution of the Permanent Order by the City Council, whichever occurs first.
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 Temporary Order No. __________ to amend Port of Los Angeles Tariff No. 4, Section Twenty-Three, “Incentives - General Rules and Regulations”, Item No. 2325 “Ocean Common Carrier Incentive Program”; (3) authorize the Board Secretary to certify the adoption of 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 (4) adopt Resolution No.___________.
Construction & Maintenance
Summary: Staff requests retroactive approval of Purchase Order Change No. 1 to Contract No. 39934 with DSM Construction Inc. of Chico, California to increase the contract from $350,217 to $552,922, a $202,705 increase, for the waterproofing of the water feature at the Waterfront Gateway on Harbor Boulevard in San Pedro. If the proposed Change Order is approved, the amount of this agreement shall not exceed $522,922 and the contract will continue until this project is complete since this is a one-time purchase order. The Harbor Department will be financially responsible for costs incurred under the contract.
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 (CEQA) under Article III Class 1(1) of the Los Angeles City CEQA Guidelines; (2) find that in accordance with Los Angeles City Charter Section 1022, work under the subject contract can be performed more feasibly by independent contractors than by City employees; (3) approve Purchase Order Change No. 1 to Contract No. 39934; (4) authorize the Executive Director to execute and Board Secretary to attest to Contract No. 39934 for and on behalf of the Board; and (5) adopt Resolution No.____________.
Debt & Treasury Management
Summary: Staff requests approval of a budgetary transfer of $6,156,667 from the Unappropriated Balance (UB) to meet a projected shortfall in the Fiscal Year (FY) 2021/22 Adopted Budget for Operating Expenses. The projected shortfall is within the Electric Services Budget of the Other Operating Expenses category. Higher than expected electricity expenses are being driven by the higher than anticipated number of container vessels calling at the Port of Los Angeles (Port). While the Harbor Department (Department) is financially responsible for paying Alternative Maritime Power® (AMP®) expenses incurred by its customers, historically 95% - 99% of AMP® expenses are reimbursed.
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 transfer of $6,156,667 from the Unappropriated Balance to Electric Services within Other Operating Expenses (Program 000, Center 0900, Account 59510); (3) direct the Board Secretary to transmit the Resolution to the Mayor for approval per Section 343(b) of the City Charter; (4) direct the Board Secretary to notify the City Clerk of this transfer per Section 343(d) of the City Charter at the time such transfer is made; and (5) adopt Resolution No.____________.
Regular Item No. 8
Information Technology
Summary: Staff is requesting approval to sign three State of California (State), California Network Next Generation (CALNET Next Gen) Authorizations to Order (ATOs) with AT&T Corporation (AT&T). The proposed ATOs would allow the City of Los Angeles Harbor Department (Harbor Department) to order telecommunications products and services at the reduced rates negotiated by the State with AT&T. The not-to-exceed payment amount for the proposed ATOs shall be the amount approved by the Board of Harbor Commissioners (Board) for the Telephone Services budget account during each annual budget process. The duration of the proposed ATOs will be three years, from January 1, 2022 through December 31, 2024. AT&T was awarded participation in the CALNET Next Gen contract after a competitive procurement process conducted by the State of California’s Department of Technology. Expenditures incurred under the proposed ATOs are the financial responsibility of the Harbor Department.
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 Administrative Code Section 10.15(8), the competitive contracting requirement is met using the responses from the State of California’s Invitation For Bids solicitation, which resulted in the State of California’s Office of Technology Services CALNET Next Gen Statewide Contracts C4-DNCS-19-001-40, C4-LEG-12-10-TS-01 and C4-CVD-19-001-04; (3) approve the three CALNET Next Gen Authorizations to Order with AT&T for the acquisition of telecommunications products and services for three years from January 1, 2022 through December 31, 2024; (4) authorize the Chief Information Officer for the Harbor Department, or designee, to be the Harbor Department’s authorized signatory for ordering services through CALNET Next Gen; and (5) 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:
(one case)
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 Permit 733 with Fenix Marine Services, Ltd.:
Property: 614 Terminal Way, San Pedro
City Negotiators: Marisa Katnich
Tenant Negotiator: Sean Pierce
Negotiating Parties: City and Fenix Marine Services, 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 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