REGULAR MEETING AGENDA
THURSDAY, JANUARY 12, 2023 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
- Regular Meeting of December 15, 2022
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Item No. 1
Office of the City Attorney
Summary: The Office of the City Attorney (Office) requests approval of an Agreement between the City of Los Angeles Harbor Department (Harbor Department) and Liebert Cassidy Whitmore (Liebert) for legal services related to employment matters. The proposed Agreement is for a term of three years and maximum compensation of $350,000. 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 a Legal Services Agreement with Liebert Cassidy Whitmore in the amount of $350,000 for a three-year term; (4) authorize the Executive Director and Board Secretary to execute and attest to the Agreement; and (5) adopt Resolution No.____________.
Regular Items (2 & 3)
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No. 900 (Permit) between the City of Los Angeles Harbor Department (Harbor Department) and WWL Vehicle Services Americas, Inc. (WWL). The reset covers the five-year period from January 1, 2022 through December 31, 2026, and will result in a $6,394,437, or 58.7 percent, increase in the minimum annual guarantee (MAG) from $10,885,563 to $17,280,000 per year, effective January 1, 2022. The MAG is subject to annual increases in July per the terms of the Permit, based on increases in the Consumer Price Index (CPI), with a floor of zero.
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. 900 with WWL Vehicle Services Americas, Inc.; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 900; and (4) adopt Resolution No.____________ and Order No.____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No. 827 (Permit) between the City of Los Angeles Harbor Department (Harbor Department) and APM Terminals Pacific, LLC (APMT). The reset covers the five-year period from August 1, 2022, through July 31, 2027. As a result of this Order, total annual guaranteed compensation will increase by at least $93.7 million, or 23.4 percent, from $401.1 million over the prior five-year period to $494.8 million over the next five-year period. Provided below is a summary:
• Minimum Annual Guarantee (MAG) per acre of the container terminal premises (441.74 acres) will increase from $185,000 to $210,000.
• Annual rent for the intermodal rail facility (40.84 acres) will increase from $2,032,525 per year as of July 31, 2022, to the following rate schedule:
o August 1, 2022: $2,175,615
o August 1, 2023: $2,175,615
o August 1, 2024: $2,175,615
o August 1, 2025: $2,318,772
o August 1, 2026: $3,220,152
• Per container charge rate schedule (i.e., TEU rate) reflects a wholesale 7.04 percent increase consistent with the General Rate Increase which took effect August 1, 2022.
Effective August 1, 2023, the MAG and TEU rates will be subject to annual increases based upon changes in the Consumer Price Index (CPI), subject to an annual minimum of 2 percent and a maximum of 7 percent.
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. 827 with APM Terminals Pacific, LLC for the period of August 1, 2022 to July 31, 2027; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 827; and (4) adopt Resolution No.___________ and Order 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 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
6. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
Mary Holman v. City of Los Angeles
Los Angeles Superior Court Case No. 21STCV02097
L. Adjournment