October 27, 2022
RETURN TO IN-PERSON MEETINGS
SUBJECT: LOS ANGELES BOARD OF HARBOR COMMISSIONERS
REGULAR MEETING - NOVEMBER 3, 2022 AT 9:00AM
The Los Angeles Board of Harbor Commissioners are scheduled to meet in-person for their Regular Meeting on Thursday, November 3, 2022 at 9:00am at the following location;
Port of Los Angeles Administration Building
Board Hearing Room, Second Floor
425 S. Palos Verdes Street
San Pedro, CA 90731
Pursuant to City of Los Angeles Ordinance No. 187219, proof of a COVID-19 vaccination for individuals 12 years of age or older is required to enter an indoor portion of a City facility. Alternatively, visitors may show proof of a negative PCR or antigen COVID-19 test conducted within 72 hours before entry.”
Please refer to the Port of Los Angeles website at www.portoflosangeles.org for further details.
AMKlesges
AMBER M. KLESGES
Board Secretary
REGULAR MEETING AGENDA
THURSDAY, NOVEMBER 3, 2022 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 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
- Special Alameda Corridor Transportation Authority Governing Board Meeting of October 13, 2022
G. Approval of the Minutes
- Regular Meeting of October 6, 2022
H. Presentation
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 - 7)
Office of the City Attorney
Summary: The Office of the City Attorney (Office) requests approval of a professional services agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Complete Discovery Source Incorporated (CDS) for electronic discovery and document processing services. The Agreement is for a term of three years, and total compensation authority of $300,000. The Harbor Department is financially responsible for payment of 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 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 in accordance to Charter Section 1022 that the scope of work of the proposed Agreement can be more economically and feasibly provided by an independent contractor than by City employees; (3) approve the proposed Agreement with Complete Discovery Source Incorporated for a total term of three years, with a not-to-exceed amount of $300,000; (4) authorize the Executive Director and Board Secretary to execute and attest to the Agreement; and (5) adopt Resolution No.___________.
Executive Office
Summary: The Harbor Community Benefit Foundation (HCBF) requests that the Board of Harbor Commissioners (Board) approve its proposed 2023 Operating Budget of $199,980 for the calendar year (CY) 2023 and transfer funding in the amount of $174,014 from the Port Community Mitigation Trust Fund (PCMTF). The HCBF is a non-profit organization that receives funding from the PCMTF established by the City of Los Angeles Harbor Department (Harbor Department) and provides grant administration for the PCMTF, subject to Board approval of budget, grants and PCMTF fund transfers in accordance with the TraPac Memorandum of Understanding (TraPac MOU) and Operating Agreement of the TraPac MOU (Operating Agreement). On September 23, 2022, HCBF's Board of Directors approved the proposed operating budget for the CY 2023 and is requesting Board approval and transfer of funds from the PCMTF. In accordance with the TraPac MOU and Operating Agreement, HCBF has provided the required financial reports and program documentation in support of its budget request. Upon approval by the Board, the Harbor Department will authorize JP Morgan Private Bank (JPMPB) to transfer a lump sum amount of $174,014 from the PCMTF to HCBF. The $174,014 will be supplemented by savings of $25,966 from the CY 2022 budget, resulting in the total requested CY 2023 Operating Budget of $199,980. Upon transfer of funds from the PCMTF, HCBF will be financially responsible for its operating budget. Additionally, HCBF will provide the Board prior notice of any reallocation of authorized funds that exceed 10% of the total annual budget. The Harbor Department has completed all funding obligations into the PCMTF under the TraPac MOU, which expired in 2013. The proposed $174,014 transfer will be made from funds which the Harbor Department previously deposited into the PCMTF.
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 Harbor Community Benefit Foundation CY2023 Operating Budget of a not- to-exceed amount of $199,980, with the condition that the Harbor Community Benefit Foundation provides the Board of Harbor Commissioners prior notice of any reallocation within the Harbor Community Benefit Foundation budget that exceeds 10% of the total annual budget; (3) authorize the Executive Director or designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the distribution of funds in one lump sum payment of $174,014 from the PCMTF at JP Morgan Private Bank to the Harbor Community Benefit Foundation subject to the same notice of reallocation condition set forth in Recommendation 2; and (4) adopt Resolution No.____________.
Executive Office
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve Harbor Community Benefit Foundation's (HCBF) selection of two projects to receive awards from the Community Benefit Grant Program, Round 8 and transfer $131,800 from the Port Community Mitigation Trust Fund (PCMTF) to HCBF. The PCMTF was established by the City of Los Angeles Harbor Department (Harbor Department) for the purpose of funding appropriate mitigation projects and grants addressing port related impacts for the communities of San Pedro and Wilmington. The HCBF, an independent nonprofit organization established to operate the PCMTF, is responsible for identifying qualifying projects to receive grant funding from the PCMTF to be approved by the Board. The HCBF Board of Directors has selected two projects to receive funding for the eighth round of the Community Benefit Grant Program, and is requesting Board approval of the award recipients and transfer of funds from the PCMTF, in accordance with the requirements of the TraPac Memorandum of Understanding (MOU) and Operating Agreement of the TraPac MOU (Operating Agreement). The proposed projects have a Tidelands nexus and will mitigate, reduce and address the Port of Los Angeles' (Port) impact on the local communities of Wilmington and San Pedro. Upon approval, $131,800 will be transferred from the PCMTF to HCBF for two total grant awards. Upon the transfer of funds from the PCMTF to HCBF, HCBF will be financially responsible for the proposed projects and for the disbursement of funds to grantees in accordance with the TraPac MOU, Operating Agreement and the Grant Agreements. The Harbor Department funded the original PCMTF, but no additional payments from the Harbor Department will be required to fund this request.
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 Harbor Community Benefit Foundation's selection of two projects to receive awards from the Community Benefit Grant Program Round 8, funded by the Port Community Mitigation Trust Fund; (3) authorize the Executive Director or his designee to execute a joint letter with the Harbor Community Benefit Foundation to approve the distribution of funds in one lump sum payment of $131,800 from J.P. Morgan Private Bank to the Harbor Community Benefit Foundation to be used in accordance with Harbor Community Benefit Foundation's request; and (4) adopt Resolution No.____________.
Executive Office
Summary: The Harbor Community Benefit Foundation (HCBF) requests that the Board of Harbor Commissioners (Board) approve its proposal to reallocate $191,050 in undisbursed Air Quality Mitigation Program funds from its grant to Effenco Development Corp. (Effenco) to future project and program funding. The $191,050 in funds are what remain of the 2018 Air Quality Mitigation Program grant to Effenco, which did not meet its performance obligations under the grant agreement and has since declared bankruptcy. The HCBF is a non-profit organization that receives funding from the Air Quality Mitigation Fund (AQMF) established by the City of Los Angeles Harbor Department (Harbor Department) and provides grant administration for the AQMF, subject to Board approval of budget, in accordance with the China Shipping Memorandum of Understanding (China Shipping MOU). On August 22, 2022, HCBF's Board of Directors approved the proposed reallocation of funds and is requesting Board approval. If the proposed reallocation of
$191,050 is approved, then the AQMF balance will be $4,468,000.
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 Harbor Community Benefit Foundation proposal to reallocate Air Quality Mitigation Program unspent grant funds from its 2018 grant to Effenco Development Inc. back to the AQMF for future project and program funding; (3) authorize the Executive Director or designee to transfer $191,050 internally from the grant funding to Effenco Development Corp. back to the AQMF; and (4) adopt Resolution No.___________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the continuation of Revocable Permit No. 15-06 (“RP 15-06”) with TTX Company (TTX) for premises located at 710 Earle Street on Terminal Island. Approval of the proposed action will allow the tenant to continue to use and occupy City of Los Angeles Harbor Department (Harbor Department) property in connection with railcar inspection and repair services. Currently, under RP 15-06, annual rent increases are applied based upon the greater of zero percent or the year-over-year change in the Consumer Price Index (CPI). If the proposed continuation is approved, effective July 1, 2023, annual rent increases would be applied based upon the greater of three percent or CPI.
Recommendation: Board resolve to (1) find that the Director of Environmental Management 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) approve the continuation of Revocable Permit No. 15-06 with TTX Company; and (3) adopt Resolution No.___________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the proposed First Amendment to Revocable Permit No. 22-03 (RP No. 22-03) with San Pedro Bait Co., a California Corporation (San Pedro Bait), which: 1) revises effective date to reflect the actual date the tenant took possession of the premises; 2) increases the premises from 6,255 square feet to 6,640 square feet; 3) increases rent from $2,189.25 to $2,324.00 to account for the increase in premises; and 4) increases the amount of the one-time rent credit by $134.75, from $2,189.25 to $2,324.00.
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(14) and Class 4(8) of the Los Angeles City CEQA Guidelines; (2) approve the First Amendment to Revocable Permit No. 22-03 with San Pedro Bait Co.; (3) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to Revocable Permit No. 22-03 upon approval by the Board; and (4) adopt Resolution No.___________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No. 853 (P853) with the City of Los Angeles Department of General Services (GSD) for the five-year period of June 9, 2021 through June 8, 2026 for premises connected with the Terminal Island Water Reclamation Plant (TIWRP). GSD serves as a pass-through contracting department on behalf of the Los Angeles Department of Public Works Bureau of Sanitation (DPW). Under the proposed Order, rent will increase by $584,571, or 23.9 percent, from $2,446,356 to $3,030,927 per year effective June 9, 2021. Commencing June 9, 2022, the base rent will be subject to an annual Consumer Price Index (CPI) adjustment for the remainder of the reset period through June 8, 2026. The permit has a three percent cap on CPI increases.
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. 853 with the Department of General Services and the Department of Public Works; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 853; and (4) adopt Resolution No.___________ and Order No.___________.
Regular Items (8 - 10)
Environmental Management
Summary: Staff requests approval of a proposed Agreement between the City of Los Angeles Harbor Department (Harbor Department) and ANEW RNG, LLC (ANEW), formerly Blue Source, LLC, for emissions credit brokerage service assistance with emission credit programs. ANEW will assist with selling the Harbor Department’s California Air Resources Board (CARB) Low Carbon Fuel Standard (LCFS) credits as well as purchasing emission credits as needed to meet permitting requirements. The proposed Agreement is for a term of three years and a not-to-exceed amount of $75,000 for permit required emission credit purchases. The Harbor Department is financially responsible for payment of 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 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 and ANEW RNG, LLC for low carbon fuel standard and other emission credit brokerage services over a three-year term; (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; and (4) adopt Resolution No.____________.
Engineering
Summary: Staff requests approval of personal services agreements (Agreements) with AECOM Technical Services, Inc. (AECOM); D R Consultants & Designers, Inc. (DRCD); Jacobs Engineering Group Inc. (Jacobs); KPFF, Inc. (KPFF); Mark Thomas & Company, Inc.; Moffatt & Nichol; and WSP USA Inc. to provide on-call engineering services supporting the City of Los Angeles (City) Harbor Department’s Capital Improvement Program (CIP), and Maintenance Improvement Program (MIP). The seven Agreements are for three-year terms in the amount of $5,000,000 each for a total of $35,000,000. The Harbor Department will be financially responsible for payment of expenses incurred under the proposed Agreements.
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) in accordance with Article II Section 2(f) 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 seven Personal Services Agreements for a term of three years each, with a combined contract total not-to-exceed amount of $35,000,000 as follows: a. AECOM Technical Services, Inc. (Orange, CA) for $5,000,000; b. D R Consultants & Designers, Inc. (Los Angeles, CA) for $5,000,000; c. Jacobs Engineering Group Inc. (Los Angeles, CA) for $5,000,000; d. KPFF, Inc. (Long Beach, CA) for $5,000,000; e. Mark Thomas & Company, Inc. (Lakewood, CA) for $5,000,000 f. Moffatt & Nichol (Long Beach, CA) for $5,000,000 g. WSP USA Inc. (Los Angeles, CA) for $5,000,000; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Agreements, for and on behalf of the Board; and (5) adopt Resolution No._____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Fifth Amendment to Amended and Restated Lease 904A (Lease No. 904A) with AltaSea at the Port of Los Angeles (AltaSea). The premises, located at City Dock No. 1 and consisting of 32.85 acres, is for water-dependent, academic, and governmental uses, and houses a non-profit and for-profit marine research facility. The proposed Fifth Amendment includes required revisions to AltaSea’s various development milestones including parcel acceptance and construction completion timelines for various parcels. In addition, the proposed Amendment includes modifications to the terms governing the Harbor Department’s remediation reimbursement provision and monetary commitments towards improvements. While approval of the proposed Amendment will adjust the timing and conditions relating to the Harbor Department’s financial commitments, the aggregate amount of the Harbor Department’s financial commitments will not change if the proposed Amendment is approved.
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 Fifth Amendment to Amended and Restated Lease No. 904A with AltaSea at the Port of Los Angeles; (3) direct the Board Secretary to transmit the Fifth Amendment to Amended and Restated Lease No. 904A to the City Council for approval pursuant to Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Fifth Amendment to Amended and Restated Lease No. 904A upon approval by City Council; 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 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:
(two cases)
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 882 with Millennium Maritime, Inc.:
Property: Berth 301, Terminal Island
City Negotiator: Marisa Katnich
Tenant Negotiator: Matt Godden
Negotiating Parties: City and Millennium Maritime, Inc.
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 Permit 900 with WWL Vehicle Services Americas, Inc.:
Property: 500 E. 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
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 Yusen Terminals LLC:
Property: 701 New Dock Street, Terminal Island
City Negotiators: Michael DiBernardo/Marisa Katnich
Tenant Negotiator: Alan McCorkle
Negotiating Parties: City and Yusen Terminals LLC
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 733 with Fenix Marine Services, Ltd.:
Property: 614 Terminal Way, San Pedro
City Negotiator: Marisa Katnich
Tenant Negotiator: Steven Trombley
Negotiating Parties: City and Fenix Marine Services, Ltd.
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 Permit 827 with APM Terminals Pacific, LLC:
Property: 2500 Navy Way, San Pedro
City Negotiators: Michael DiBernardo/Marisa Katnich
Tenant Negotiator: Jon Poelma
Negotiating Parties: City and APM Terminals Pacific 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
11. 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
L. Adjournment