Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, APRIL 13, 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
- Audit Committee Meeting of March 30, 2023
G. Approval of the Minutes
- Regular Meeting of March 30, 2023
H. Presentation
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Item No. 1
Executive Office
Summary: Staff requests approval of a Resolution revising the contracting authority of the Executive Director of the Los Angeles Harbor Department (Harbor Department) to be consistent with Los Angeles Administrative Code Section 10.1.1. Currently, the Executive Director possesses the limited authority to enter into personal service contracts for up to one year, procurement contracts for up to three years, and construction contract change orders, provided that the value of any such contracts do not exceed $150,000 annually or per change order. This authority delegated to the Executive Director under the existing Board Resolution is inconsistent with Los Angeles Administrative Code Section 10.1.1. The proposed Resolution would grant the Executive Director, or his or her designee, the authority to enter into personal service contracts up to one year and all contracts that are not personal service contracts up to three years, provided that the value of any such contracts does not exceed $150,000 annually (Transmittal 1). Rather than limiting the Executive Director’s authority to personal service contracts for up to one year, procurement contracts for up to three years, and construction contract change orders, the proposed Resolution would grant the Executive Director, or his or her designee, the ability to approve and execute contracts on behalf of the Harbor Department to the full extent provided under and consistent with Los Angeles Administrative Code Section 10.1.1.
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) rescind Resolution No. 13-7574 delegating only partial authority to the Executive Director, or his or her designee, to approve and execute certain contracts as provided under Los Angeles Administrative Code Section 10.1.1; (3) authorize the Executive Director, or his or her designee, to approve and execute on behalf of the Harbor Department personal service contracts which do not obligate the City for a longer period of time than one year and which do not involve consideration reasonably valued in excess of One Hundred-Fifty Thousand Dollars ($150,000) annually; (4) authorize the Executive Director, or his or her designee, to approve and execute on behalf of the Harbor Department contracts that are not for personal services which do not obligate the City for a longer period of time than three years and which do not involve consideration reasonably valued in excess of One Hundred-Fifty Thousand Dollars ($150,000) annually; and (5) adopt Resolution No.____________ and Resolution No.____________.
Regular Items (2 – 6)
Executive Office
Summary: Staff requests approval of the Amended Public Access Investment Plan (Amended Plan), which updates the 2015 Board of Harbor Commissioners (Board) approved Public Access Investment Plan (Plan or PAIP), which are ten-year budgetary guidelines for continued development and operations of the LA Waterfront at the Port of Los Angeles (Port) and Port-related public benefit programs. The Amended Plan updates the original Plan, which is set to expire at the end of Fiscal Year 2024/2025. The Amended Plan continues the budgetary guideline to allocate a minimum of ten percent (10%) of the City of Los Angeles Harbor Department’s (Harbor Department) annual Operating Income to build LA Waterfront public access projects, with the added clarification that purpose-directed funds collected from third parties are excluded from Operating Revenue. Additionally, the Amended Plan aligns the public access project reporting and selection process with the Harbor Department’s five-year Capital Improvement Program and annual budget process to continue the Harbor Department’s commitment to investing in the LA Waterfront in a transparent, sustainable and predictable manner. Further, Los Angeles City Council District 15 will engage in a public process on future project selection and will work with the Harbor Department to implement a multi-year project and expenditure plan. The Amended Plan was developed in coordination with Los Angeles City Council District 15. Consistent with the Los Angeles City Charter, the Amended Plan will not limit future Board discretion or authority to revise the Amended Plan or budget allocations for public access projects and annual spending, which remain subject to Board approval through the annual budget process.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed project 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 Amended Public Access Investment Plan; and (3) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of a proposed Memorandum of Understanding (MOU) among the City of Los Angeles Harbor Department (Harbor Department), the City of Long Beach acting by and through its Board of Harbor Commissioners (Port of Long Beach), and the Maritime and Port Authority of Singapore (MPA) to collaborate on the development and implementation of a Green and Digital Shipping Corridor (GDSC) between the respective port complexes. C40 Cities (C40), a global network of cities united to reduce climate risk, will support development of the GDSC as facilitator. The proposed MOU, which would be effective for three years, will advance the participants’ mutual goals for decarbonization by advancing environmental performance in the maritime shipping industry and improving supply chain efficiencies through information digitalization. The proposed MOU is for the collaboration of ideas between the participating ports; therefore, funding by the Harbor Department is not required. The MOU will be formally executed at a Singapore Maritime Week event hosted by MPA in April.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is generally exempt from the requirements of the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the State CEQA Guidelines; (2) approve the Memorandum of Understanding among the City of Los Angeles Harbor Department, the City of Long Beach, and the Maritime and Port Authority of Singapore; (3) authorize the Executive Director to execute and Board Secretary to attest to said Memorandum of Understanding for and on behalf of the Board of Harbor Commissioners; and (4) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of the Second Amendment to the California Air Resources Board (CARB) Grant Agreement No. 19-3639 to fund the zero emissions “Shore to Store” Demonstration Project (Project). The Second Amendment revises milestone deadlines and reallocates funding between budget items among subrecipient partners to account for actual spending over the life of the Project without increasing the total grant amount from CARB. All other terms and conditions remain the same. The City of Los Angeles Harbor Department (Harbor Department) will not commit any additional funding under this proposed Second Amendment.
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 Second Amendment to Agreement No. 19-3639 between the City of Los Angeles Harbor Department and the California Air Resources Board to revise milestone deadlines, and reallocate budget line items for the Shore to Store Demonstration Project; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Second Amendment for and on behalf of the Board; and (4) adopt Resolution No.___________.
Environmental Management
Summary: Staff requests approval of the First Amendment to the Subrecipient Agreement No. 19-3684 with the Port of Hueneme (POH) to pass through grant funds from the California Air Resources Board (CARB) as part of the “Shore to Store” Demonstration Project (Project). The Project is primarily funded under Grant Agreement No. 19-3639 with CARB, wherein the City of Los Angeles Harbor Department (Harbor Department) partnered with Kenworth Motor Company (Kenworth), POH, and Equillon Enterprises LLC (d/b/a Shell Oil Products US) (Shell) to demonstrate 10 hydrogen fuel cell electric drayage trucks, two heavy duty hydrogen fueling stations, two battery electric yard tractors, and associated electrical infrastructure to support zero-emission operations at POH. The First Amendment allocates to POH unspent funding from other tasks under the CARB Grant agreement, to account for POH’s actual spending over the life of the Project and extends the Project term to align with the CARB Grant agreement. The Harbor Department will not commit any additional funding under this proposed First Amendment.
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 and ratify the First Amendment to Agreement No. 19-3684 between the City of Los Angeles Harbor Department and the Port of Hueneme to reallocate funding and extend the Project term to May 15, 2023, for the Shore to Store Demonstration Project; (3) authorize the Executive Director to execute and the Board Secretary to attest to said First Amendment for and on behalf of the Board; and (4) adopt Resolution No.____________.
Financial Planning & Analysis
Summary: Staff requests approval of budgetary transfers in the amount of $3,486,269 to cover anticipated budgetary shortfalls within the Outside Services category for Information System Consulting Services, Waterfront and Commercial Real Estate programs and initiatives, and Hiring Hall; and the Materials and Supplies category for Parts and Materials, and Equipment Fuels. Within the Adopted Operating Expense Budget, $3,486,269 of surplus funds are expected to be available in the Salaries and Benefits, Other Operating Expenses, and City Services categories to offset the anticipated shortfalls. This proposed transfer of funds will result in no change to the overall Fiscal Year (FY) 2022/23 Adopted Operating Expense Budget of $334,039,691 as funds are being transferred between budget categories within the Operating Expense Budget. Payment of Outside Services, Parts and Materials, and Equipment Fuels expenses are the financial responsibility of the City of Los Angeles Harbor Department (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) approve the following budgetary transfers to resolve a projected shortfall in the respective operating expense accounts: a. Transfer $1,500,000 from the Adopted Operating Expense Budget, Account 51610, Center 0901, Program 000 as follows: i. $1,500,000 to Account 54310, Center 0640, Program 000; b. Transfer $986,269 from the Adopted Operating Expense Budget, Account 57070, Center 0900, Program 000 as follows: i.$530,000 to Account 55010, Center 0510, Program 000; ii. $350,000 to Account 55040, Center 0510, Program 000; iii. $106,269 to Account 54270, Center 0510, Program 000; c. Transfer $1,000,000 from the Adopted Operating Expense Budget, Account 59961, Center 0422, Program 000 as follows: i. $290,106 to Account 54270, Center 0510, Program 000; ii. $309,894 to Account 54276, Center 0510, Program 000; iii. $400,000 to Account 54290, Center 0429, Program 000; (3) direct the Board Secretary to transmit the Resolution to the Mayor for approval pursuant to Section 343(b) of the City Charter; (4) direct the Board Secretary to notify the City Clerk of such transfer pursuant to Section 343(d) of the City Charter at the time such transfer is made; and (5) adopt Resolution No.____________.
K. Closed Session
1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
City of Los Angeles v. L.A. Terminals, Inc., et al.
Los Angeles Superior Court Case No. NC061591
2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
L.A. Terminals, Inc. v. City of Los Angeles; Occidental Chemical Corporation
United States District Court Case No. 2:18-cv-06754 MWF (RAOx)
3. 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
4. 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
5. 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
6. 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)
7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 529 with Intermodal Container Transfer Facility Joint Powers Authority:
Property: 2401 East Sepulveda Blvd., Long Beach
City Negotiator: Marisa Katnich
Tenant Negotiator: Gregory Bingham
Negotiating Parties: City and Intermodal Container Transfer Facility Joint Powers Authority
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 California Sulphur Company:
Property: 2250 East Pacific Coast Highway, Wilmington
City Negotiator: Marisa Katnich
Tenant Negotiators: Jack Babbitt/Jack Weaverling
Negotiating Parties: City and California Sulphur Company
Under Negotiation: Price and Terms
L. Adjournment