Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, DECEMBER 1, 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
None
G. Approval of the Minutes
None
H. Presentation
• Wilmington Waterfront Program Project Update
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 3)
Cargo Marketing
Summary: Staff requests approval of a Third Amendment to Foreign-Trade Zone (FTZ) Operating Agreement No. 2633 between the City of Los Angeles Harbor Department (Harbor Department) and Schafer Brothers Distribution Center, Inc (Schafer) to continue operating its facility within FTZ 202, Site 12, located at 1981 E. 213th Street, Carson, CA 90746. The Harbor Department, as the FTZ Grantee, establishes Operating Agreements with FTZ site operators to oversee their FTZ operations. Schafer’s current FTZ Operating Agreement No. 2633 expired on September 30, 2022. The Third Amendment will extend the Operating Agreement by five years. Schafer requests to continue operating its warehouse as an FTZ warehouse. The Harbor Department must execute the Third Amendment to extend the Agreement, as required by the FTZ Board. Site 12 consists of an 8 acre site with approximately 191,000 square feet of warehousing and office space located nine miles from the Port of Los Angeles. Schafer will operate its facility under FTZ procedures as a single-usage site. The proposed Third Amendment will not require funding by the Harbor Department. If the proposed amendment is approved, the Harbor Department will receive $7,750 annually from Schafer (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 Third Amendment to Foreign-Trade Zone Operating Agreement No. 2633 between the City of Los Angeles Harbor Department and Schafer Brothers Distribution Center, Inc; (3) direct the Board Secretary to transmit the proposed Third Amendment to Foreign-Trade Zone Operating Agreement No. 2633 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 Third Amendment to Foreign-Trade Zone Operating Agreement No. 2633; and (5) adopt Resolution No._____________.
Cargo & Industrial Marketing
Summary: Staff requests approval of a proposed Right of Way Contract (Purchase and Sale Agreement) between Hunt Enterprises, Inc. and the City of Los Angeles Harbor Department (Harbor Department) for the purchase of two Temporary Construction Easements (TCEs) consisting of 1,370 square feet in aggregate, and a partial fee acquisition consisting of 133 square feet (together, Properties), each property being portions of 661 N. Harbor Boulevard, San Pedro (Subject Property). The Harbor Department will purchase the property from Hunt Enterprises, Inc. as part of the SR-47/Vincent Thomas Bridge and Front Street/Harbor Boulevard Interchange Project, a public project designed to improve traffic operations and reduce vehicle delay and travel time (SR-47 Project). If the proposed Purchase and Sale Agreement is approved, the Harbor Department will be responsible for a total payment of $67,500 covering the purchase of the two TCEs, the Partial Fee Acquisition and closing costs.
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) find that the purchase of a) A Temporary Construction Easement consisting of 499 square feet, b) A Temporary Construction Easement consisting of 871 square feet and c) A Partial Fee consisting of 133 square feet, portions of 661 N. Harbor Boulevard are in the best interest of the Harbor Department, as the acquisition is required to implement SR-47/Vincent Thomas Bridge and Front Street/Harbor Boulevard Interchange Project, a public project designed to improve traffic operations and reduce vehicle delay and travel time; (3) approve the Purchase and Sale Agreement with Hunt Enterprises, Inc. of $65,000 for the two Temporary Construction Easements and the Partial Fee Acquisition land parcel located at 661 N. Harbor Boulevard. In addition, approve the Harbor Department’s expenditure for costs associated with the sale, including nominal escrow and title insurance fees for an amount not to exceed $2,500; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Purchase and Sale Agreement and the two Certificate of Acceptance documents corresponding with the two Temporary Construction Easements and Grant Deed documents from Hunt Enterprises, Inc.; (5) authorize the Executive Director to execute the necessary documents and escrow instructions, including but not limited to extending escrow, if needed, through mutual agreement of the parties, to acquire the Properties and wire transfer the necessary funds to the City of Los Angeles Harbor Department’s approved escrow company; and (6) adopt Resolution No. _________________.
Accounting
Summary: Staff requests approval of the Third Amendment to Agreement No. 16-3418 (Agreement) with Citibank, N.A. (Citibank) which provides Travel Payment System (TPS) services to the City of Los Angeles Harbor Department (Harbor Department) by participating in an agreement between the State of California (State) and Citibank (State’s Master Agreement) with the same terms and conditions. Under the Agreement, select Harbor Department staff are able to utilize charge cards towards business and travel reservation services in accordance with existing City of Los Angeles and Harbor Department travel policies and procedures. The State has announced the Third Amendment to the State’s Master Agreement with Citibank for TPS services and requests each participating agency to acknowledge the revision. The proposed Third Amendment will revise Exhibit D to include language regarding adverse credit bureau reporting of individual liability travel cards (IBTs). The Harbor Department does not utilize IBTs, and therefore revisions to Exhibit D do not affect the Harbor Department’s charge cards and travel reservation services. All other terms and conditions within the Agreement remain unchanged. The Harbor Department will continue to be financially responsible for expenses incurred under the 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 that in accordance with the Los Angeles City Charter Section 1022, the services required can be performed more feasibly by an outside contractor than by City employees; (3) approve the proposed Third Amendment (Transmittal 4) to Agreement No. 16-3418 between the Harbor Department and Citibank; (4) authorize the Executive Director or his designee to execute and the Board Secretary to attest to the proposed Third Amendment; 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: (one case)
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 953 with Everglades Terminal Company, Inc.:
Property: Berths 121-127, San Pedro
City Negotiator: Marisa Katnich
Tenant Negotiator: Tom Van Eynde
Negotiating Parties: City and Everglades Terminal Company, 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 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
7. 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
8. 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
9. 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
10. 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
11. 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: (three cases)
L. Adjournment