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, APRIL 28, 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
- Audit Committee Meeting of March 24, 2022
- Special Alameda Corridor Transportation Authority Governing Board Meeting of April 7, 2022
- Regular Alameda Corridor Transportation Authority Governing Board Meeting of April 21, 2022
G. Approval of the Minutes
- Regular Meeting of March 24, 2022
- Special Meeting of April 14, 2022
H. Presentation
None
I. Level I Coastal Development Permit
The Executive Director has issued one (1) Level I CDP:
J. Board Reports of the Executive Director
Consent Items (1 – 4)
Commission Office
Recommendation: Board resolve to (1) adopt subject Resolution No.____________.
Cargo Marketing
Summary: Staff requests approval of the Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and Interport Logistics, LLC (Interport), to operate its facility within FTZ No. 202, Site 66, located at 5560 61st Street, Commerce, CA 90040. The 1.1 acre property includes a warehouse and office space, approximately 21 miles north of the Port of Los Angeles. The FTZ Operating Agreement with Interport was previously presented and approved by the Board of Harbor Commissioners (Board) on January 27, 2022; however, due to an administrative error, the Site number associated with the approved Operating Agreement was incorrect. We are now required to resubmit and seek approval for a new Operating Agreement for the correct Site 66. The proposed Agreement is for a term of five years with three, five-year renewal options. If the proposed Agreement is approved, the Harbor Department will receive $7,750 annually from Interport (per FTZ Tariff No. 2).
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 proposed Foreign Trade-Zone Operating Agreement between the City of Los Angeles Harbor Department and Interport Logistics, LLC; (3) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating 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; (4) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Foreign-Trade Zone Operating Agreement; and (5) adopt Resolution No.____________.
Environmental Management
Summary: Staff recommends approval of a proposed Agreement between the City of Los Angeles Harbor Department (Harbor Department) and Rincon Consultants, Inc. (Rincon), which is based in Los Angeles, California, to provide continuation of monitoring services of the endangered California least tern (CLT) nesting site on Pier 400. The endangered CLT bird species nests annually on Pier 400, adjacent to the Port of Los Angeles’ (Port) largest container terminal. The Harbor Department maintains, monitors, and protects 15 acres on Pier 400 for the nesting of these endangered birds. Approval of the proposed Agreement with Rincon will authorize a three-year contract term for an amount not-to-exceed $426,218. The Harbor Department is financially responsible for expenses incurred under the proposed Agreement.
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 1(9) and Class 6(2) of the Los Angeles City CEQA Guidelines; (2) approve the Agreement with Rincon Consulting, Inc., for a term of three years for a not-to-exceed amount of $426,218; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement for and on behalf of the Board; and (4) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of the proposed Agreements with Anchor QEA, LLC; Merkel & Associates, Inc.; Michael Baker International, Inc.; Moffatt & Nichol; Pi Environmental, LLC; and Wood Environment & Infrastructure Solutions, Inc. to provide the City of Los Angeles Harbor Department (Harbor Department) technical support for water and sediment quality programs, biological resources management and regulatory program development and compliance. This action will authorize six as-needed Agreements, each for a three-year term, with a combined total not-to-exceed amount of $6,000,000. The Harbor Department is financially responsible for payment under the proposed Agreements.
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) find that in accordance with the City Charter Section 1022, work under the subject Agreements can be performed more feasibly by independent consultants rather than by City employees; (3) approve the Agreement with Anchor QEA, LLC, for a term of three years for the total not-to-exceed amount of $1,100,000; (4) approve the Agreement with Merkel & Associates, Inc. for a term of three years for the total not-to-exceed amount of $250,000; (5) approve the Agreement with Michael Baker International, Inc. for a term of three years for the total not-to-exceed amount of $1,400,000; (6) approve the Agreement with Moffatt & Nichol for a term of three years for the total not-to-exceed amount of $750,000; (7) approve the Agreement with Pi Environmental, LLC for a term of three years for the total not-to-exceed amount of $1,100,000; (8) approve the Agreement with Wood Environment & Infrastructure Solutions, Inc. for a term of three years for the total not-to-exceed amount of $1,400,000; (9) authorize the Executive Director to execute and the Board Secretary to attest to said Agreements for and on behalf of the Board; and (10) adopt Resolution No.____________.
Regular Items (5 – 7)
Cargo Marketing
Summary: The California Association of Port Authorities (CAPA), of which the Port of Los Angeles (Port) is a member, adopted an annual general rate increase (GRI) methodology for tariffs based on the West Region Consumer Price Index for All Urban Consumers (CPI-U). The Bureau of Labor Statistics has identified a 7.1 percent increase in the CPI-U for the 12-month period ending December 2021. The Port through CAPA had a 5 percent GRI in calendar year (CY) 2004 and 2005. On May 16, 2013, the City of Los Angeles Board of Harbor Commissioners (Board) approved a 1.7 percent GRI, also following CAPA adoption, applicable to almost all rated tariff items of the Port Tariff No. 4 (Tariff No. 4), effective July 1, 2013. A Second and Third Temporary Order was approved by the Board. Ultimately, the City of Los Angeles City Council did not agendize the GRI Permanent Order, and thus no further Temporary Orders were approved by the Board. Upon expiration of the last Temporary Order, rated tariff items reversed to pre-Temporary Order levels. On November 4, 2021, the Board approved Temporary and Permanent Orders amending Tariff No. 4 increasing petroleum products rates by 9.4 and 11.8 percent effective January 1, 2022, and deleting tariff items no longer relevant. Petroleum products rate increases are still pending City Council approval. Staff is recommending approval of a GRI effective August 1, 2022, of 7.1 percent, applicable to Tariff No. 4 rated tariff items, excluding rated tariff items that currently have a scheduled rate increase. This Temporary Order is being proposed within the Board’s authority to adopt rates for up to 90 days. A separate action recommends a Permanent Order and Ordinance for approval by the Board and City Council, which are required to make effective changes to Tariff No. 4 beyond the Temporary Order’s 90 day effective period.
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 III Class 1 (31) of the Los Angeles City CEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4 increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises”, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930, 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. __________ with an effective date of August 1, 2022, to amend Port of Los Angeles Tariff No. 4, increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises””, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930; (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 on August 1, 2022, for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); and (5) adopt Resolution No.____________.
Cargo Marketing
Summary: The California Association of Port Authorities (CAPA), of which the Port of Los Angeles (Port) is a member, adopted an annual general rate increase (GRI) methodology for tariffs based on the West Region Consumer Price Index for All Urban Consumers (CPI-U). The Bureau of Labor Statistics has identified a 7.1 percent increase in the CPI-U for the 12-month period ending December 2021. The Port through CAPA had a 5 percent GRI in calendar year (CY) 2004 and 2005. On May 16, 2013, the City of Los Angeles Board of Harbor Commissioners (Board) approved a 1.7 percent GRI, also following CAPA adoption, applicable to almost all rated tariff items of the Port Tariff No. 4 (Tariff No. 4), effective July 1, 2013. A Second and Third Temporary Order was approved by the Board. Ultimately, the City of Los Angeles City Council did not agendize the GRI Permanent Order, and thus no further Temporary Orders were approved by the Board. Upon expiration of the last Temporary Order, rated tariff items reversed to pre-Temporary Order levels. On November 4, 2021, the Board approved Temporary and Permanent Orders amending Tariff No. 4 increasing petroleum products rates by 9.4 and 11.8 percent effective January 1, 2022, and deleting tariff items no longer relevant. Petroleum products rate increases are still pending City Council approval. Staff is recommending approval of a GRI effective August 1, 2022, of 7.1 percent, applicable to Tariff No. 4 rated tariff items, excluding rated tariff items that currently have a scheduled rate increase. A separate action recommends a Temporary Order to make changes to Tariff No. 4 within the Board’s authority to adopt rates for up to 90 days, with any rates to be effective beyond the 90 days requiring the Permanent Order and Ordinance to be approved by the City Council.
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 III Class 1 (31) of the Los Angeles City CEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4 increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises”, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930, 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.____________ with an effective date of August 1, 2022, to amend Port of Los Angeles Tariff No. 4, increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises””, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930; (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 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; (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 Settlement Agreement and Stipulation for Entry of Administrative Civil Liability Order between the City of Los Angeles Harbor Department (Harbor Department) and the Los Angeles Regional Water Quality Control Board (LARWQCB), to resolve $279,000 in past fines associated with water quality violations at the New Dock Pump Station (Pump Station), between October 2017 and August 2021. The Settlement Agreement is the result of negotiations between the Harbor Department and the LARWQCB, where $60,000 out of $279,000 in fines that are due would be paid to the LARWQCB. The remaining $219,000 would go toward three LARWQCB-approved Supplemental Environmental Projects (SEPs), for environmental outreach and educational programs designed to improve watershed protection awareness in the Los Angeles River watershed. The Harbor Department is responsible for all costs associated with the Settlement Agreement totaling $279,000.
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 Article II Section 1 and Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the Settlement Agreement and Stipulation for Entry of Administrative Civil Liability Order (Order No. R4-2022-0003) between the City of Los Angeles Harbor Department and the Los Angeles Regional Water Quality Control Board; and (3) 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 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
4. 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)
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 899 with Pacific Battleship Center:
Property: Berths 88-89, San Pedro
City Negotiators: Michael Galvin
Tenant Negotiator: Johnathan Williams
Negotiating Parties: City and Pacific Battleship Center
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: Berth 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 a proposed permit with Innovative Terminal Services, Inc.:
Property: 916 Barracuda Street, Terminal Island
City Negotiator: Marisa Katnich
Tenant Negotiator: Kent Phillips
Negotiating Parties: City and Innovative Terminal Services, 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 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