Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, MAY 11, 2023 AT 9:00 AM
Board of Harbor Commissioners
Vice President Edward R. Renwick
Commissioner Diane L. Middleton
Commissioner Michael Muñoz
Commissioner Lucille Roybal-Allard
Commissioner Lee Williams
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
- Special Meeting of April 27, 2023
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 3)
Environmental Management
Summary: Staff requests the Board of Harbor Commissioners (Board) adopt the proposed Resolution authorizing the submittal of annual applications to the State of California Department of Resources Recycling and Recovery (CalRecycle) for the Household Hazardous Waste Grant Program. The resolution is required by CalRecycle as part of the grant application process. If adopted, staff will apply for the CalRecycle grant every year for five years for a maximum award of $50,000 per year for a cumulative grant amount of $250,000. If awarded, the funds will be used to offset the cost to host marine flare collection events throughout the port. There is no financial impact to the Harbor Department for adopting this resolution authorizing staff to apply for the grant.
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) adopt Resolution No. ____________ to authorize the submittal of applications to the State of California Department of Resources Recycling and Recovery (CalRecycle) for the Household Hazardous Waste Grant Program; and (3) adopt Resolution No.____________.
Media Relations & Strategic Communications
Summary: Staff requests approval of the First Amendments (Amendments) to Agreement No. 20-3747 with Dorothea Diemer-Kovacevich DBA DDK Communications, Agreement No. 20-3748 with Full Vision Productions, LLC, Agreement No. 20-3749 with Natalie L. Shore Peterson, and Agreement No. 20-3750 with Reservoir, LLC (Multi-Media Agreements). The proposed Amendments extend the term of the Multi-Media Agreements by two years from three years currently to five years as proposed through June 18, 2025. Furthermore, the proposed Amendments will increase compensation by $350,000 from $294,000 currently to $644,000 as proposed. The Multi-Media Agreements are being extended due to the contractors’ subject matter expertise on topics such as the environment and international commerce; speech writing and presentation coaching; video production as well as their success in delivering quality materials on tight deadlines. Each of these consultants are Very Small Business Enterprises (VSBE), while two are also Women Business Enterprises (WBE). The City of Los Angeles Harbor Department (Harbor Department) is financially responsible for payment of expenses incurred under the agreements.
Recommendation: Board resolve to (1) find that the Director of Environmental Management had 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 Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (3) approve the First Amendments to Agreement No. 20-3747 with Dorothea Diemer-Kovacevich DBA DDK Communications; Agreement No. 20-3748 with Full Vision Productions, LLC; Agreement No. 20-3749 with Natalie L. Shore Peterson; and Agreement No. 20-3750 with Reservoir, LLC; (4) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendments to Agreement No. 20-3747, Agreement No. 20-3748, Agreement No. 20-3749, and Agreement No. 20-3750 for and on behalf of the Board; and (5) adopt Resolution No.____________.
Cargo Marketing
Summary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Nippon Express USA Inc. (Nippon Express) to operate its facility within FTZ 202, Site 61, located at 1901 W. Pacific Coast Highway, Long Beach, California. This is a 10-acre property including a warehouse and offices located approximately 6 miles north of the Port of Los Angeles. Currently, Site 61 is managed by Nippon Express and operates its warehouse under FTZ procedures as a multi-usage site. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. The proposed Agreement is for a term of five years with three, five-year renewal options. If the proposed Agreement is approved, the Harbor Department will receive $7,750 annually from Nippon Express (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 Foreign-Trade Zone Operating Agreement between the Harbor Department and Nippon Express; (3) direct the Board Secretary to transmit the proposed Foreign-Trade Zone Operating Agreement 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 Foreign-Trade Zone Operating Agreement; and (5) adopt Resolution No.____________.
Regular Items (4 – 5)
Cargo Marketing
Summary: Staff requests approval to amend Port of Los Angeles Tariff No. 4 (Tariff) to increase rated tariff items based on the West Region Consumer Price Index for All Urban Consumers (CPI-U). The California Association of Port Authorities (CAPA), of which the Port of Los Angeles (Port) is a member, adopted an annual general rate increase (GRI) methodology for tariffs based on the CPI-U. The Bureau of Labor Statistics has identified a 6.2 percent increase in the CPI-U for the 12-month period ending December 2022. On April 28, 2022, the Board of Harbor Commissioners (Board) approved Order No. 22-7327, which was approved by City Council Ordinance No. 187649, adopting a 7.1 percent GRI through CAPA, effective August 1, 2022. Prior to that, the Port implemented GRIs in the Port’s Tariff No. 4 (POLA Tariff) in calendar year (CY) 2004 and 2005, and a 1.7 percent GRI for a temporary 9-month period in July 2013 - March 2014 under Temporary Orders only, which expired when it was not approved by City Council under Permanent Order. The proposed CAPA GRI, effective July 1, 2023, of 6.2 percent, is applicable to the POLA Tariff rated tariff items, excluding rated tariff items that have a scheduled rate increase as of the effective date. Staff is recommending approval of the CAPA GRI, effective July 1, 2023, of 6.2 percent, applicable to the POLA Tariff rated tariff items, excluding rated tariff items that have a scheduled rate increase as of the effective date. This Temporary Order is being proposed within the Board’s authority to adopt rates for up to 90-days. A separate action recommends a Permanent Order and Ordinance for approval by the Board and City Council, which are required to make effective changes to Tariff No. 4 beyond the Temporary Order’s 90-day effective period.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(31) of the Los Angeles City CEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4 increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises”, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930, subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with the California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with the California Association of Port Authorities’ procedure; (3) adopt Temporary Order No.____________ with an effective date of July 1, 2023, to amend Port of Los Angeles Tariff No. 4, increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises””, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930; (4) authorize the Board Secretary to certify the adoption of Temporary Order by the Board of Harbor Commissioners and cause the same to be published once in a newspaper printed and published in the City of Los Angeles, to take effect on July 1, 2023, for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); and (5) adopt Resolution No.___________.
Cargo Marketing
Summary: Staff requests approval to amend Port of Los Angeles Tariff No. 4 (Tariff) to increase rated tariff items based on the West Region Consumer Price Index for All Urban Consumers (CPI-U). The California Association of Port Authorities (CAPA), of which the Port of Los Angeles (Port) is a member, adopted an annual general rate increase (GRI) methodology for tariffs based on the CPI-U. The Bureau of Labor Statistics has identified a 6.2 percent increase in the CPI-U for the 12-month period ending December 2022. On April 28, 2022, the Board of Harbor Commissioners (Board) approved Order No. 22-7327, which was approved by City Council Ordinance No. 187649, adopting a 7.1 percent GRI through CAPA, effective August 1, 2022. Prior to that, the Port implemented GRIs in the Port’s Tariff No. 4 (POLA Tariff) in calendar year (CY) 2004 and 2005, and a 1.7 percent GRI for a temporary 9-month period in July 2013 - March 2014 under Temporary Orders only, which expired when it was not approved by City Council under Permanent Order. The proposed CAPA GRI, effective July 1, 2023, of 6.2 percent, is applicable to the POLA Tariff rated tariff items, excluding rated tariff items that have a scheduled rate increase as of the effective date. A separate action recommends a Temporary Order to make changes to Tariff No. 4 within the Board’s authority to adopt rates for up to 90-days, with any rates to be effective beyond the 90-days requiring this Permanent Order and Ordinance to be approved by the City Council.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(31) of the Los Angeles City CEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4 increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises”, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930, subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with the California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with the California Association of Port Authorities’ procedure; (3) adopt Permanent Order No.____________ with an effective date of July 1, 2023, to amend Port of Los Angeles Tariff No. 4, increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises””, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930; (4) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the Amendments to Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); (5) direct the Board Secretary to transmit to the City Clerk a Notice of Public Hearing for publication in accordance with the provisions of California Government Code sections 66018 and 6062a; (6) after the effective date of the Ordinance, transmit the Permanent Order and Ordinance to the Executive Director or his nominee for implementation and posting to the Port of Los Angeles website; and (7) 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 Concession Agreement 521 with Via Cabrillo Marina 2500, LLC:
Property: 2500 Via Cabrillo Marina, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Nicholas Tonsich
Negotiating Parties: City and 2500 Via Cabrillo Marina, LLC
Under Negotiation: Price and Terms
L. Adjournment