June 1, 2023
DATE CHANGE - SPECIAL MEETING NOTICE
SUBJECT: LOS ANGELES BOARD OF HARBOR COMMISSIONERS
SPECIAL MEETING – WEDNESDAY, JUNE 7, 2023
The Los Angeles Board of Harbor Commissioners are scheduled to meet on
Wednesday, June 7, 2023 at 9:00am for a Special Meeting to be held at;
Port of Los Angeles Administration Building
Board Hearing Room, Second Floor
425 S. Palos Verdes Street
San Pedro, CA 90731
This Special Meeting is being held in lieu of the Boards canceled meeting on Thursday, June 8, 2023.
Please refer to the posted agenda at www.portoflosangeles.org for further details.
AMKlesges
AMBER M. KLESGES
Board Secretary
Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
SPECIAL MEETING AGENDA
WEDNESDAY, JUNE 7, 2023 AT 9:00 AM
Board of Harbor Commissioners
Edward R. Renwick, Vice President
Diane L. Middleton
Michael Muñoz
Lucille Roybal-Allard
I. Lee Williams
ORDER OF BUSINESS
Convene in Memory of Rick Cameron
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 May 25, 2023
- Alameda Corridor Transportation Authority Governing Board Meeting of June 1, 2023
G. Approval of the Minutes
- Special Meeting of May 25, 2023
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 2)
Cargo & Industrial Real Estate
Summary: Staff requests approval of the First Amendment (First Amendment) to Reciprocal License Agreement No. 2012 (Agreement No. 2012) between Southern California Edison Company (SCE) and the City of Los Angeles Harbor Department (Harbor Department), which would extend the term by five years, for a total aggregate term of thirty years. Under the proposed First Amendment, the expiration date would change from April 30, 2023, to April 30, 2028. All other terms, conditions, and obligations would remain unchanged. There is no compensation payable by either the Harbor Department or SCE under Agreement No. 2012, due to the reciprocal nature of the agreement.
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(14) of the Los Angeles City CEQA Guidelines; (2) approve and ratify the First Amendment to Reciprocal License Agreement No. 2012 between the City of Los Angeles Harbor Department and Southern California Edison Company; (3) direct the Board Secretary to transmit the proposed First Amendment to the Los Angeles City Council for approval and ratification 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 First Amendment; and adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Third Amendment to Agreement No. E6975 with California Dining Services (Cal Dining) to extend the length of the current five-year agreement by six additional months. The Third Amendment will increase the contract amount by $75,500 to cover the additional six months expenses, for a total contract amount of $740,000. Cal Dining operates the Port Pantry Café (Port Pantry) at the Harbor Administration Building (HAB) and provides vending machine, catering, and coffee services. Cal Dining was chosen from a Request for Proposals (RFP) for a Port Pantry Operator published by the City of Los Angeles Harbor Department (Harbor Department) in April 2018. The Harbor Department will continue to be financially responsible for the 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) approve the Third Amendment to Agreement No. E6975 with California Dining Services; (3) authorize the Executive Director to execute and Board Secretary to attest to the Third Amendment; and (4) adopt Resolution No.____________.
Regular Items (3 – 5)
Financial Planning & Analysis
Summary: Staff requests approval of the Fiscal Year (FY) 2023/24 Proposed Annual Budget (Proposed Budget) of $2,020,804,969. The Proposed Budget is aligned with the 2018 – 2022 Strategic Plan (Strategic Plan) and will enable the City of Los Angeles Harbor Department (Harbor Department) to meet its commitments in the upcoming fiscal year. Adoption of the Proposed Budget will position the Port of Los Angeles (Port) to deliver value to its customers by providing superior infrastructure, promoting efficient operations, as well as forging strong and lasting relationships with its stakeholders.
The Proposed Budget includes sources and appropriations of funds as follows:
TABLE 1: SOURCES AND APPROPRIATIONS OF FUNDS
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Sources:
|
|
|
Appropriations:
|
|
|
Operating Receipts
|
$ 652,862,946
|
|
Operating Expenses
|
$ 372,352,064
|
|
Non-Operating Receipts
|
22,731,610
|
|
Non-Operating Expenses
|
33,092,325
|
|
Grant Receipts (Capital)
|
47,962,114
|
|
Capital Budget
|
252,316,588
|
|
Debt Issuance Proceeds
|
--
|
|
Debt Repayments & Other
|
64,497,759
|
|
|
|
|
|
|
|
Available Cash:
|
|
|
Projected Year-End Balances:
|
|
|
Unrestricted Funds
|
1,216,257,030
|
|
Unappropriated Balance
|
1,197,733,510
|
|
Restricted Funds
|
80,991,269
|
|
Restricted Cash
|
100,812,723
|
|
Total Sources
|
$2,020,804,969
|
|
Total Appropriations
|
$2,020,804,969
|
The Proposed Budget represents the ongoing commitment of Harbor Department staff to operate and maintain the Port in a fiscally sound manner according to the guidelines, policies, and direction set forth by the Board of Harbor Commissioners (Board). Furthermore, the Proposed Budget complies with the Board-approved Financial Policies that relate to debt rating, debt service coverage, and reserve levels.
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 the Fiscal Year 2023/24 Proposed Annual Budget for the City of Los Angeles Harbor Department and appropriate funds in accordance herewith, pursuant to Section 511(b) of the City Charter; (3) authorize the Executive Director, or his designee, to make any technical adjustments consistent with the Board action(s) to the Fiscal Year 2023/24 Proposed Annual Budget documents in the implementation of this budget; (4) approve the transfer of $17,624,847 from the Harbor Revenue Fund, Account 11010, Center 7000, Program 000 to the Harbor Special Operating Fund, Account 11035, Center 7000, Program 000; (5) direct the Board Secretary to transmit the Resolution and Annual Budget to the Mayor and Controller pursuant to Section 511(b) of the City Charter; and (6) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the annual budget for Fiscal Year (FY) 2024 for operation of Cabrillo Way Marina (CWM) by Westrec Marina Management, Inc. (Westrec) under Agreement No. 13-3125 (Agreement). The Agreement was approved by the Board of Harbor Commissioners (Board) in 2013 for Westrec to manage CWM as a fee operator, while passing through all expenses and revenue to the City of Los Angeles Harbor Department (Harbor Department). Westrec’s estimated FY 2024 revenue is $8,459,298 with total expenses of $3,881,674. FY 2024 proposed net income of $4,577,624 results in a net profit margin of 54.1 percent, a decrease from the FY 2023 approved budget margin of 55.9 percent and the FY 2022 actual net profit margin of 56.9 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 Westrec Marina Management, Inc. annual budget for Fiscal Year 2024 under Agreement No. 13-3125; and (3) adopt Resolution No.____________.
Information Technology
Summary: Staff requests approval of the Sixth Amendment to Amended and Restated Agreement No. 17-3425-A with Wabtec Transportation Systems, LLC (Wabtec) for the Port Optimizer project. The Port Optimizer is a first-of-its-kind common user portal that provides a single information window to support enhanced maritime supply chain performance. The proposed Sixth Amendment is to continue development and operation of the Port Optimizer, which will enable the City of Los Angeles Harbor Department (Harbor Department) and Wabtec to enhance the existing Track and Trace and Control Tower modules and implement three new modules. The proposed Sixth Amendment will revise some terms of the agreement for the purpose of clarity, increase the not-to-exceed compensation by $6,500,000 for a total agreement amount of $34,600,420, and does not change the term which will conclude on November 3, 2026. Expenditures incurred under Agreement No. 17-3425-A 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 6(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 proposed Sixth Amendment to Amended and Restated Agreement No. 17-3425-A to increase the not-to-exceed compensation by $6,500,000 for a total agreement amount of $34,600,420 in order to continue to develop, operate and support the Port Optimizer; (4) direct the Board Secretary to transmit said 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; (5) authorize the Executive Director to execute and the Board Secretary to attest to the said Agreement for and on behalf of the Board upon approval by City Council; and (6) 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 REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Compensation Reset Under Permit No. 896 with Crafted at the Port of Los Angeles:
Property: 112 E. 22nd Street, San Pedro, CA 90731
City Negotiator: Michael Galvin
Tenant Negotiator: Wayne Blank
Negotiating Parties: City and Crafted at the Port of Los Angeles
Under Negotiation: Price and Terms
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Compensation Reset Under Permit 529 with Union Pacific Railroad Company:
Property: 2401 E. Sepulveda Boulevard, Wilmington
City Negotiator: Marisa Katnich
Tenant Negotiator: Gregory Brigham
Negotiating Parties: City and Union Pacific Railroad Company
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 Five-Year Review of Revocable Permit 91-38 with Southern California Edison Company:
Property: Adjacent to the southwest corner of Hesperian Ave. and W. Arlington St. in Long Beach
City Negotiator: Marisa Katnich
Tenant Negotiator: Erin Johnson
Negotiating Parties: City and Southern California Edison Company
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 Five-Year Review of Revocable Permit 00-06 with Howard Kim:
Property: 813 South Seaside Avenue, Terminal Island
City Negotiator: Marisa Katnich
Tenant Negotiator: Jason Matthews
Negotiating Parties: City and Howard Kim
Under Negotiation: Price and Terms
L. Adjournment