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, MARCH 24, 2022 AT 9:00 A.M.
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 Neighborhood Council representatives to provide remarks on Neighborhood Council Resolutions or Community Impact Statements filed with the City Clerk which relate to any agenda item listed or being considered on this agenda for the Board of Harbor Commissioners.
E. Reports of the Commissioners
F. Board Committee Reports
- Alameda Corridor Transportation Authority Governing Board Meeting of March 17, 2022
G. Approval of the Minutes
- Regular Meeting of March 10, 2022
- Special Meeting of March 10, 2022
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 8)
Goods Movement
Summary: Staff requests that the Board of Harbor Commissioners adopt a Resolution providing mutual agreement by approving a Notice of Mutual Agreement (NMA), which enables the Alameda Corridor Transportation Authority (ACTA) to execute a six month extension of the current Alameda Corridor (AC) Dispatching Agreement with the BNSF Railway (BNSF) and Union Pacific Railroad (UPRR). The current ACTA Dispatching Agreement expires on April 14, 2022. The Alameda Corridor (AC) Use and Operating Agreement (UOA) requires that the City of Los Angeles Harbor Department (Harbor Department), Port of Long Beach (POLB), BNSF, and UPRR collectively select the AC train operations dispatcher via an NMA. There are no financial impacts to the Harbor Department if this NMA is approved and this current Dispatching Agreement is extended.
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 2022-1 that enables ACTA to execute a six month extension of the current Dispatching Agreement with the BNSF and UPRR; (3) direct the Executive Director to transmit this Resolution to ACTA for further action pursuant to the Amended and Restated AC UOA; and (4) adopt Resolution No.____________.
Information Technology
Summary: Staff requests approval to enter into an Agreement with CherryRoad Technologies Inc. (CherryRoad) to provide as-needed temporary Information Technology (IT) staff augmentation and backfill services to support the City of Los Angeles Harbor Department’s (Harbor Department) Oracle Enterprise Resource Planning (ERP) Cloud project. The term of the proposed Agreement is three years and the not-to-exceed compensation amount is $2,012,900. The recommendation to select CherryRoad is based on a competitive Request for Proposals (RFP) process performed by the Harbor Department. The ERP Cloud project, which was presented to the Board of Harbor Commissioners (Board) at its February 24, 2022 meeting, will migrate the Harbor Department’s existing on-premise Oracle E-Business Suite ERP (EBS) system to the Oracle ERP Cloud system. The proposed Agreement is one of the agreements that was discussed as part of the project. Expenditures incurred under the proposed Agreement 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 the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (3) approve the Agreement with CherryRoad Technologies Inc. for a term of three years and a not-to-exceed compensation amount of $2,012,900; (4) authorize the Executive Director to execute and the Board Secretary to attest the said Agreement for and on behalf of the Board; and (5) adopt Resolution No.____________.
Construction & Maintenance
Summary: Staff requests approval of Contract No. 39957 with Bernell Hydraulics, Inc. (Bernell) of Rancho Cucamonga, California, for the purchase of new hydraulic cylinders containing stainless steel rods at the four gangways at Berths 91-93 World Cruise Center (WCC). The amount of this agreement shall not exceed $1,769,501, and the contract will continue until this project is complete. The Harbor Department will be financially responsible for costs incurred under the proposed 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 Act (CEQA) under Article III Class 2(3) 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 Contract No. 39957 with Bernell in the amount of $1,769,501; (4) authorize the Executive Director to execute and Board Secretary to attest to Contract No. 39957 for and on behalf of the Board; and (5) adopt Resolution No.___________.
Cargo & Industrial Real Estate
4. RESOLUTION NO. ____________ - APPROVE REVOCABLE PERMIT NO. 21-20 WITH AMERICAN MARINE CORPORATION
Summary: Pursuant to the City of Los Angeles Harbor Department (Harbor Department) policy for five-year review by the Board of Harbor Commissioners for the continuation or modification of revocable permits, staff requests approval of Revocable Permit No. 21-20 with American Marine Corporation (American Marine) for a month-to-month term subject to review every five years to occupy 50,411 square feet of paved land, 61,725 square feet of water, and 15,913 square feet of paved fire lane used for the operation of tugboats, dive services and barge services, and the operation of a portable crane for the purpose of transport of marine equipment and supplies at 1500 South Barracuda Street, Terminal Island, CA. Revocable Permit No. 21-20 will yield $155,214.89 in revenue to the City of Los Angeles Harbor Department (Harbor Department) in the first year, with annual step increases and Consumer Price Index (CPI) adjustments on the anniversary of the effective date of no less than three percent thereafter.
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(14) and Class 1(18(b)) of the Los Angeles City CEQA Guidelines; (2) approve Revocable Permit No. 21-20 with American Marine Corporation; (3) authorize the Executive Director to execute and the Board Secretary to attest to Revocable Permit No. 21-20 upon approval by the Board; and (4) adopt Resolution No.___________.
Cargo & Industrial Real Estate
Summary: Pursuant to the City of Los Angeles Harbor Department (Harbor Department) policy for five-year review by the Board of Harbor Commissioners (Board) for the continuation or modification of revocable permits, staff requests approval of the continuation of Revocable Permit (RP) No. 16-26 with Agustin Alcala, dba A&A Containers (A&A), located at 918-928 Murdock Avenue in Wilmington. Approval of the proposed action will allow the tenant to continue to use and occupy the premises on a month-to-month basis, subject to an increase in monthly compensation from $4,369.70 per month to $5,049.10 per month, with annual Consumer Price Index (CPI-U) adjustments of no less than three percent thereafter.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is generally and categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(18(d)) of the Los Angeles City CEQA Guidelines; (2) approve the continuation of Revocable Permit No. 16-26 with Agustin Alcala, dba A&A Containers; (3) adopt Resolution No.____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of Revocable Permit No. 22-01 (RP No. 22-01) with So. Cal. Ship Services (SCSS) for a month-to-month term not to exceed five years to occupy 50,311 square feet of paved land used for parking and storage of dunnage on South Seaside Avenue, Terminal Island. SCSS provides water taxi and land-based logistical support for offshore oil platforms. RP No. 20-01 will replace SCSS’s current Revocable Permit No. 19-17, which expires on April 30, 2022. Square footage will be unchanged, but will include a change to the perimeter fence boundary. Revocable Permit No. 20-01 will yield $211,306.20 in revenue to the City of Los Angeles Harbor Department (Harbor Department) in the first year, with annual Consumer Price Index (CPI) adjustments of no less than three percent thereafter.
Recommendation: Board resolve to (1) consider the Addendum to the previously adopted Final Initial Study/Mitigated Negative Declaration for the So. Cal. Ship Services Project; (2) find that, in accordance with the provisions of the California Environmental Quality Act Guidelines Section 15164, the proposed Revocable Permit No. 22-01 will not result in any new significant environmental effects or substantially more severe effects than previously analyzed in the adopted Final Initial Study/Mitigated Negative Declaration for So. Cal. Ship Services Project; (3) authorize the Environmental Management Division to file a Notice of Determination with the Los Angeles County Clerk and the Los Angeles City Clerk; (4) approve Revocable Permit No. 22-01 with So. Cal. Ship Services; (5) authorize the Executive Director to execute and the Board Secretary to attest to Revocable Permit No. 22-01 upon approval by the Board, and approval as to form by the City Attorney; and (6) adopt Resolution No.____________.
Commission Office
Recommendation: Board resolve to (1) adopt subject Resolution No.___________.
Environmental Management
8. RESOLUTION NO. ____________ - APPROVAL OF THE SECOND AMENDMENT TO SUBRECIPIENT AGREEMENT NO. 17-3533 WITH EVERPORT TERMINAL SERVICES INC., BYD MOTORS LLC AND TAYLOR MACHINE WORKS, INC.
Summary: Staff requests approval of the Second Amendment to Subrecipient Agreement No. 17-3533 for the Port of Los Angeles’ Everport Advanced Cargo Handling Demonstration Project (Project). The Amendment will modify the project schedule and extend the term of the Agreement until March 31, 2023. The Subrecipient Agreement is a multiparty agreement between the City of Los Angeles Harbor Department (Harbor Department), Everport Terminal Services, Inc. (Everport), BYD Motors LLC (BYD), and Taylor Machine Works, Inc. (Taylor) to develop and demonstrate five pieces of zero-emission (ZE) cargo handling equipment. The extension to the term of the Agreement and update to the project schedule account for the impacts of COVID-19 pandemic delaying the project timeline. All other terms and conditions remain the same, including the overall project costs and participant commitments. The associated California Energy Commission (CEC) Grant Agreement No. 17-3532 was amended and was approved by the Board of Harbor Commissioners (Board) on February 24, 2022. Expenditures incurred by the Subrecipient are funded by the CEC Grant Agreement No. 19-3666. The Harbor Department is financially responsible for $2,000,000 for the infrastructure development at the site, which will be complete in March 2022.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively and categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) and Article III Class 6(2) of the Los Angeles City CEQA Guidelines; (2) approve the Second Amendment to Agreement No. 17-3533 between City of Los Angeles Harbor Department, Everport Terminal Services Inc., BYD Motors LLC, and Taylor Machine Works, Inc.; (3) authorize the Board Secretary to transmit said Amendment to the Los Angeles City Council for approval in accordance with Charter Section 373 and Los Angeles Administrative Code Section 10.5(a); (4) 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 Second Amendment with Everport Terminal Services Inc., BYD Motors LLC, and Taylor Machine Works, Inc. for and on behalf of the Board after approval by City Council; and (5) adopt Resolution No.____________.
Regular Items (9 – 12)
Cargo & Industrial Real Estate
Summary: Staff requests approval of two independent actions concerning Permit No. 733 between the City of Los Angeles Harbor Department (Harbor Department) and Fenix Marine Services, LTD (FMS): 1) the Order resetting compensation under the Permit and 2) the transfer of control of FMS to its parent, CMA CGM, through a stock purchase between Fin TopCo Partnership LP, a Delaware limited partnership, and CMA CGM, a French public limited company, whereby CMA CGM acquired 100 percent indirect ownership of FMS. The Order will reset compensation associated with the portion of the premises that is not subject to the Minimum Annual Guarantee (Flat Rent on Non-MAG Area) for the five-year period beginning January 1, 2022 through December 31, 2026, with annual Consumer Price Index (CPI) adjustments commencing January 1, 2023. For the period of January 1, 2022 through December 31, 2022, the proposed Order would increase the flat rent on the non-MAG compensation by $663,574, or 20 percent, from $3,317,872 to $3,981,446. All other components of compensation (i.e., MAG and rates) are reset mechanically pursuant to the terms of the Permit and are not required to be included in this proposed Order. This action would also provide the necessary approval by the Board of Harbor Commissioners pursuant to the terms of the Permit concerning the transfer of control of FMS at the parent level, which occurred upon the consummation of the stock purchase between FIN TopCo Partnership LP and CMA CGM, resulting in CMA CGM indirectly owning 100 percent of the interests of FMS.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed actions are 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. 733 with Fenix Marine Services, LTD for the five-year period of January 1, 2022 through December 31, 2026; (3) authorize the Board Secretary to attest to the Order resetting compensation to be paid by Fenix Marine Services, LTD under Permit No. 733; (4) approve the transfer of control resulting from the acquisition of 100 percent indirect ownership of FMS by its parent CMA CGM through a stock purchase pursuant to 12(a) of the Permit; and (5) adopt Resolution No.____________ and Order No.____________.
Environmental Management
10. RESOLUTION NO. ____________ - APPROVAL OF THE PORT OF LOS ANGELES CLEAN TRUCK FUND SPENDING PLAN
Summary: Staff requests approval of the Clean Truck Fund (CTF) Spending Plan for the development and implementation of programs that will utilize funds collected under the CTF Rate. This proposed three-year plan is intended to guide the allocation of revenues from the CTF Rate to support incentives for zero-emission (ZE) trucks and infrastructure. This document establishes the near-term objectives of the CTF investments, describes priority targets for spending over the three-year span, and defines the pathways and programs that will be used to disseminate the funds. The specific details and terms of each distinct pathway will be brought to the Board of Harbor Commissioners for approval at a later date.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is generally and statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) under Sections 15061(b)(3) and 15262 of the State CEQA Guidelines; (2) approve the Clean Truck Fund Spending Plan; and (3) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of a proposed Agreement between the City of Los Angeles Harbor Department (Harbor Department) and CALSTART, Inc. (CALSTART) for the administration of the Port of Los Angeles (POLA) Zero-Emission (ZE) Truck Voucher Incentive Program (Voucher Incentive Program). On November 4, 2021, the Board of Harbor Commissioners (Board) approved the establishment of the Clean Truck Fund (CTF), directed Staff to prepare a spending plan, and approved collection of the CTF Rate starting April 1, 2022. This proposed Agreement supports a major strategy included in the CTF spending plan. The Voucher Incentive Program has allocated $40 million of the approximate $45 million initially expected to be collected from the CTF Rate to provide up to $300,000 towards the purchase price of a ZE truck. Each truck funded will be obligated to provide drayage service to the San Pedro Bay Ports (Ports) for a period of three years. The Voucher Incentive Program is designed similarly to the California Air Resources Board (CARB) Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) and will leverage the HVIP network of vendors for distribution of the funding. CALSTART is the current administrator of the CARB HVIP Program. CALSTART has agreed to administer the Voucher Incentive Program at no cost to the Harbor Department. The Harbor Department is financially responsible for the approved vouchers up to the $40 million of the CTF.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is generally and administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the State CEQA Guidelines and Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the Agreement between the City of Los Angeles Harbor Department and CALSTART, Inc. for administration of the Port of Los Angeles Zero-Emission Truck Voucher Incentive Program; (3) approve the use and distribution of $40 million of Clean Truck Funds in the form of vouchers for the purchase of zero-emission trucks that will service the San Pedro Bay Ports; (4) authorize the Executive Director, or his Designee, to approve the Port of Los Angeles Zero-Emission Truck Voucher Incentive Program Forms submitted by Program participants; (5) authorize the Executive Director to execute and Board Secretary to attest to said Agreement for and on behalf of the Board of Harbor Commissioners; and (6) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of proposed Revocable Permit No. 21-03 between the City of Los Angeles Harbor Department (Harbor Department) and the University of Southern California (USC) for use of approximately 23,200 square feet (SF) of land and 8,000 SF of water at Berth 194 in Wilmington for the operation of a boathouse, storage and launching of racing shells, and related incidental purposes. Revocable Permit No. 21-03 will supersede Permit No. 828, which expired on February 23, 2006, and was placed on holdover status while the Harbor Department explored many development plans for the area throughout the years. The proposed compensation for this new Revocable Permit will initially be $44,400 per year (or $3,700 per month), and will increase annually by $12,000 for the next two years. Additionally, the rent will also be adjusted by the annual Consumer Price Index (CPI) adjustment factor in July of each year.
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(14) of the Los Angeles City CEQA Guidelines; (2) find that it is in the best interest of the City of Los Angeles Harbor Department to deviate from the rate of return policy and grant the educational discount to the University of Southern California as an academic institution and educational facility which provides significant non-monetary compensation in the form of education and public programming, and other local and regional economic benefits; (3) approve Revocable Permit No. 21-03 with the University of Southern California; (4) authorize the Executive Director and Board Secretary to execute and attest to Revocable Permit No. 21-03; and (5) adopt Resolution No.____________.
K. Closed Session
1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
Environmental Compliance Solutions, Inc., et al. v. City of Los Angeles, et al.
Los Angeles Superior Court Case No. 21STCV02498
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.
Los Angeles Superior Court Case No. BS070017
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.
San Diego Superior Court Case No. 37-2021-00023385-CU-TT-CTL
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 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)
6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Revocable Permit 13-08 with U.S. Water Taxi Inc.:
Property: Berth 68, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Chris Adams
Negotiating Parties: City and U.S. Water Taxi Inc.
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 Revocable Permit 15-26 with U.S. Water Taxi Inc.:
Property: Berth 60, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Chris Adams
Negotiating Parties: City and U.S. Water Taxi 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 Revocable Permit 15-12 with San Pedro Bait Company, Inc.:
Property: Berth 261, Terminal Island
City Negotiator: Marisa Katnich
Tenant Negotiator: Mark Pisano
Negotiating Parties: City and San Pedro Bait Company, Inc.
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 Revocable Permit 16- 36 with California Seafoods LLC:
Property: 2208 Signal Place, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Matthew Meyring
Negotiating Parties: City and California Seafoods LLC
Under Negotiation: Price and Terms
10. 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