Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, MARCH 16, 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 February 23, 2023
H. Presentation
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 6)
Cargo & Industrial Real Estate
1. RESOLUTION NO. ____________ - ORDER APPROVING COMPENSATION RESET UNDER PERMIT NO. 925 WITH AUGELLO ENTERPRISES, LLC
2. RESOLUTION NO. ____________ - AWARD OF CONTRACT NO. 39987 TO QUINN COMPANY FOR PURCHASE OF HEAVY CONSTRUCTION EQUIPMENT
Summary: Staff requests approval of an Order resetting compensation under Permit No. 925 (P925) with Augello Enterprises, LLC (Augello) for the period of November 6, 2022 through November 5, 2027. P925 grants Augello use of 15,927 square feet of paved land, 29,784 square feet of unpaved land, and 64 square feet of nonexclusive wharf space for the operation and maintenance of a fish processing and cold storage facility used for the offloading and processing of wet fish from commercial fishing boats, and associated water-dependent operations. P925 is for a term of five years, with three five-year extensions at the sole discretion of the Board of Harbor Commissioners. Augello’s current annual rent is $157,011.72. Under the proposed Order, rent will increase on a graduated basis:
- Effective retroactively to November 6, 2022, monthly rent increases by 16.2 percent from $13,084.31 to $15,205.81 per month.
- Effective January 1, 2023, monthly compensation would increase by an additional 7.1 percent, such that annual compensation would increase by 23.2 percent from $157,011.72 to $193,445.76 during the first year of the five-year reset period.
- Effective November 6, 2023, and annually thereafter, rent would increase by the annual increase in the Consumer Price Index (CPI), with a floor of zero and no cap.
The proposed rent increase makes the rates consistent with current rates set forth in Tariff No. 4.
Recommendation: Board resolve to (1) find 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. 925 with Augello Enterprises, LLC for the compensation period of November 6, 2022 through November 5, 2027; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 925; and (4) adopt Order No.__________ and Resolution No.___________.
Construction & Maintenance
Summary: Staff requests approval of a one-year contract, Contract No. 39987, with Quinn Company (Quinn) of City of Industry, California for the purchase and delivery of heavy-duty construction equipment as identified in the City of Los Angeles Harbor Department (Harbor Department) capital equipment budget approved as part of the annual budget process. The total amount of the Contract shall not exceed $1,500,000. Payment of expenditures incurred under the proposed Contract 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 City of Los Angeles Administrative Code Division 10, Chapter 1, Article 2, Section 10.15(a)(8), the Harbor Department may enter into an agreement with Quinn Company utilizing a current agreement for such services with Sourcewell through their Contract No. 032119-CAT, a cooperative purchase agreement; (3) approve Contract No. 39987 with Quinn Company in the amount of $1,500,000 for a period of one year; (4) authorize the Executive Director to execute and Board Secretary to attest to Contract No. 39987 for and on behalf of the Board; and (5) adopt Resolution No.____________.
Construction & Maintenance
3. RESOLUTION NO. ____________ - AWARD OF CONTRACT NO. 39989 TO 72 HOUR LLC FOR PURCHASE OF MEDIUM AND HEAVY DUTY TRUCKS – CLASS 4, 5, 6, 7, 8 CHASSIS
4. RESOLUTION NO. ____________ - FIRST AMENDMENT TO AGREEMENT NO. 20-3741 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND HARBOR BREEZE CORP. FOR AS-NEEDED BOAT TOURS
5. RESOLUTION NO. ____________ - RECEIVE AND FILE HARBOR COMMUNITY BENEFIT FOUNDATION SUBMISSION OF THE ANNUAL AIR QUALITY MITIGATION FUND REVIEW FOR CALENDAR YEAR 2022 AND BUDGET FOR CALENDAR YEAR 2023
6. RESOLUTION NO. ____________ - APPROVAL OF HARBOR COMMUNITY BENEFIT FOUNDATION’S AIR QUALITY MITIGATION PROGRAM, ROUND 2 GRANT AND THE TRANSFER OF AIR QUALITY MITIGATION PROGRAM FUNDS
8. RESOLUTION NO. ____________ - APPROVE THE SECOND AMENDMENT TO PERMIT NO. 882 BETWEEN MILLENNIUM MARITIME, INC. AND THE CITY OF LOS ANGELES HARBOR DEPARTMENT
9. RESOLUTION NO. ____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND KNIGHT COMMUNICATIONS, INC. FOR MAINTENANCE AND SUPPORT FOR THE PORT POLICE COMMUNICATIONS SYSTEMS
Summary: Staff requests the approval of a one-year contract with two one-year renewal options, Contract No. 39989 with 72 Hour LLC dba National Auto Fleet Group (72 Hour), of Watsonville, California for the purchase and delivery of medium and heavy duty trucks as identified in the City of Los Angeles Harbor Department (Harbor Department) capital equipment budget approved as a part of the department’s annual budget process. The amount of this contract shall not exceed $5,000,000 for the initial year. If the two renewal options are exercised, $5,000,000 will be authorized for the second year and $5,000,000 for the third year. The total contract amount would not exceed $15,000,000 over the three years if the renewal options are exercised. Payment of expenditures incurred under the proposed Contract 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 City of Los Angeles Administrative Code Division 10, Chapter 1, Article 2, Section 10.15 (a)(8), the Harbor Department may enter into an agreement with 72 Hour utilizing a current agreement for such services with Sourcewell through their Contract No. 060920-NAF, a cooperative purchase agreement; (3) approve Contract No. 39989 with 72 Hour in the amount of $5,000,000 for a period of one year, with two one-year renewal options in the same amount annually to be exercised by the Executive Director or his/her designee; (4) authorize the Executive Director to execute and Board Secretary to attest to Contract No. 39989 for and on behalf of the Board; and (5) adopt Resolution No.________________.
Community Relations
Summary: Staff requests approval of the First Amendment (Amendment) to Agreement No. 20-3741 with Harbor Breeze Corp. (Harbor Breeze) for boat tours for both the City of Los Angeles Harbor Department’s (Harbor Department) student/youth programs and as-needed tours for business and community stakeholders, visiting delegations, as well as distinguished groups or guests. The proposed Amendment extends the term of the Agreement by two years from three years currently to five years as proposed, through May 18, 2025. The Agreement is being extended due to boat tours being placed on hold during the COVID-19 pandemic. Compensation under the proposed Amendment will remain unchanged with a total not-to-exceed amount of $585,000 for the duration of the agreement and annual costs not-to-exceed $181,000 per Fiscal Year (FY). The Harbor Department will continue to be financially responsible for payment of 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 City Charter Section 1022, the Harbor Department does not own the required equipment and that the contractor will provide the vessels, as well as the crew; (3) approve the First Amendment to Agreement No. 20-3741 extending the three-year term to a total of five years for a total not-to-exceed amount of $585,000 for the entire five-year term; (4) 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); (5) 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 the First Amendment to Agreement No. 20-3741 for and on behalf of the Board; and (6) adopt Resolution No._______________.
Executive Office
Summary: Staff requests the Board of Harbor Commissioners (Board) to receive and file the Harbor Community Benefit Foundation (HCBF) reports of the Air Quality Mitigation Fund (AQMF) Calendar Year (CY) 2022 Review and Calendar Year 2023 Budget. In accordance with the China Shipping Amended Stipulated Judgment MOU, the HCBF is required to submit a yearly budget report on the AQMF to the City of Los Angeles, Harbor Department (Harbor Department) Executive Director, and to receive budget approval from the Harbor Department. Accordingly, the HCBF has submitted its CY 2023 AQMF Budget request of $82,305. Because the CY 2023 budget request is within the Executive Director’s authority, it has been approved. This receive and file report is being presented to the Board as information. No transfer of Harbor Department monies would be required to fund the CY 2023 AQMF Budget.
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) receive and file the Reports of the Harbor Community Benefit Foundation’s Air Quality Mitigation Fund CY 2022 Review and CY 2023 Budget; and (3) adopt Resolution No.___________.
Executive Office
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve Harbor Community Benefit Foundation’s (HCBF) selection of WattEV to receive funding from the Air Quality Mitigation Program, Round 2 Grant and transfer $2,000,000 from the Air Quality Mitigation Fund (AQMF) to HCBF. The AQMF was established by the City of Los Angeles Harbor Department (Harbor Department) pursuant to a Memorandum of Agreement with HCBF and China Shipping Petitioners approved by the Board in 2015 and 2021, for the purpose of funding mitigation projects which are reasonably calculated to reduce port-related air emissions. The HCBF, an independent nonprofit organization established to operate the AQMF, is responsible for identifying qualifying projects to receive grant funding from the AQMF, to be approved by the Board. The HCBF Board of Directors has selected WattEV to receive $2,000,000 in funding from the Air Quality Mitigation Program, Round 2 Grant and is requesting Board approval of the award recipient and transfer of funds from the AQMF, in accordance with the requirements of the China Shipping Memoranda of Agreements (MOA). The proposed project has a Tidelands nexus and will mitigate air emissions impacts on the local communities of Wilmington and San Pedro. Upon the transfer of funds from the AQMF to HCBF, HCBF will be financially responsible for the proposed project and for the disbursement of funds to the grantee in accordance with the China Shipping MOA and the Grant Agreements. The Harbor Department funded the original AQMF, and 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 one project to receive a grant of $2,000,000 from the Air Quality Mitigation Program Round 2, funded by the Air Quality Mitigation 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 $2,000,000 from the AQMF account at Bank of America to the Harbor Community Benefit Foundation to be used in accordance with Harbor Community Benefit Foundation’s request; and (4) adopt Resolution No.__________.
Regular Items (7 – 9)
Cargo & Industrial Real Estate
Summary: Staff requests approval of three separate actions concerning Permit No. 882 (Permit) between Millennium Maritime, Inc., now known as Westoil Tug Services, Inc. (Millennium/Westoil) and the City of Los Angeles: 1) Transfer of the Permit to Millennium/Westoil under a new corporate structure resulting from the sale of stock and/or assets, merger and/or consolidation and/or reorganization by or of Millennium/Westoil; 2) transfer of the option to extend the term of the Permit from November 1, 2021 to October 31, 2026, and deeming Millennium/Westoil’s exercise of that option effective; and 3) resetting compensation under the Permit for the period of November 1, 2021 to October 31, 2026. There is a companion item also agendized for the March 16, 2023, Board of Harbor Commissioners meeting that requests approval of the Second Amendment to Permit No. 882 with Millennium Maritime, Inc. which changes the name of the permittee from Millennium Maritime, Inc. to Westoil Tug Services, Inc. and changes the name of its parent company, Harley Marine Services, Inc. to Centerline Logistics Corporation in the guaranty of the Permit. If the proposed actions are approved, monthly rent would remain at $58,227.91, or $698,734.92 per year until the next Consumer Price Index (CPI) adjustment due July 1, 2023.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed actions are 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(18) of the Los Angeles City CEQA Guidelines; (2) approve the Order authorizing the transfer of Permit No. 882 to Millennium Maritime, Inc., now known as Westoil Tug Services, Inc., under a new corporate structure; (3) approve the Order authorizing the transfer of the option to extend the term of Permit No. 882 from November 1, 2021 to October 31, 2026, to Millennium Maritime, Inc., now known as Westoil Tug Services, Ind., under a new corporate structure and deem the exercise of that option effective; (4) approve the Order resetting compensation under Permit No. 882 for the period of November 1, 2021 to October 31, 2026; (5) authorize the Board Secretary to attest to the Order approving the transfer of Permit No. 882 to Millennium Maritime, Inc., now known as Westoil Tug Services, Inc. under a new corporate structure; (6) authorize the Board Secretary to attest to the Order approving the transfer of the option to extend the term of Permit No. 882 from November 1, 2021, to October 31, 2026, to Millennium Maritime, Inc., now known as Westoil Tug Services, Ind., under a new corporate structure and deem the exercise of that option effective; (7) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 882 for the period of November 1, 2021 to October 31, 2026; and (8) adopt Resolution No. _____________ and Order Nos. _______________________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Second Amendment to Permit No. 882 (Permit), which effects the following changes: 1) changes the name of the permittee from Millennium Maritime, Inc. (Millennium) to Westoil Tug Services, Inc. (Westoil); 2) increases the insurance limits set forth in the Permit; and 3) provides a guaranty by Centerline Logistics Corporation, Westoil’s parent company. There is a companion item also agendized for the March 16, 2023 Board of Harbor Commissioners meeting, which is related to this action. That item concerns the approval and consent to a transfer, the exercise of an option to extend, and a compensation adjustment for Permit No. 882.
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 Second Amendment to Permit No. 882; (3) direct the Board Secretary to transmit the Second Amendment to Permit No. 882 to the City Council for approval pursuant to Section 606 of the City Charter; (4) the Executive Director to execute and the Board Secretary to attest to the Second Amendment to Permit No. 882; and (5) adopt Resolution No._____________.
Information Technology
Summary: Staff requests approval to enter into an Agreement with Knight Communications, Inc., to provide maintenance and support services twenty-four hours per day, seven days a week for the City of Los Angeles Harbor Department Port Police Communications Systems. The recommendation to select Knight is based on a competitive Request for Proposal process performed by the Harbor Department. The proposed Agreement has a three-year term and a not-to-exceed compensation amount of $5,765,000. The payment of 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 and categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) and Article III Class 1(2) 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 Knight for a duration of three years and a not-to-exceed compensation amount of $5,765,000; (4) authorize the Executive Director to execute and the Board Secretary to attest to the said Agreement for and on behalf of the Board; 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 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: (one case)
6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 529 with Union Pacific Railroad Company:
Property: 2401 East Sepulveda Blvd., Long Beach
City Negotiator: Marisa Katnich
Tenant Negotiator: Gregory Brigham
Negotiating Parties: City and Union Pacific Railroad
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 Lease 904A with AltaSea at the Port of Los Angeles:
Property: 2500 Signal Street, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Terry Tamminen
Negotiating Parties: City and AltaSea at the Port of Los Angeles
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