Downloadable Board Book
Los Angeles Board of Harbor Commissioners
Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, JUNE 22, 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, Larry Freeman Sr.
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 June 7, 2023
H. Presentation
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 4)
Contracts & Purchasing
Summary: Staff requests approval to award Contract No. 39999 to Staples Contract & Commercial LLC (Staples), headquartered in Framingham, MA, for the purchase of general office supplies. Contract No. 39999 is a one-year contract, with two, one-year renewal options at an annual amount not-to-exceed $250,000. Through this contract, the City of Los Angeles Harbor Department (Harbor Department) will purchase general office supplies required for daily business operations. The Harbor Department will be financially responsible for the payment of expenses incurred under Contract No. 39999.
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 Contract No. 39999 with Staples Contract & Commercial LLC for a term of one-year at an amount not-to-exceed $250,000, with two, one-year renewal options at an annual amount not-to-exceed $250,000; (3) authorize the Executive Director to execute the proposed contract; (4) authorize the Executive Director or designee, in his/her discretion, to exercise two, one-year renewal options at an amount not-to-exceed $250,000 annually, subject to budget authorization in each year; and (5) adopt Resolution No.____________.
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 Financial Evidence Group (FEG) for professional forensic accounting services. The proposed Agreement is for a term of three years and maximum compensation of $150,000. 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 Professional Services Agreement with Financial Evidence Group in the amount of $150,000 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.___________.
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 Kuehne and Nagel Inc. (K&N) to operate its facility within FTZ 202, Site 63, located at 20000 S. Western Avenue, Torrance, CA 90501. This is a 2.6-acre property including a warehouse and office space located approximately 10 miles north of the Port of Los Angeles. K&N would operate 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 K&N (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 Kuehne and Nagel Inc.; (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.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Order resetting compensation for Permit No. 624 (P624) between Twenty Second Street Landing, LLC (Twenty Second Street) and the City of Los Angeles Harbor Department (Harbor Department). P624 has a 39-year term, which commenced November 27, 1987, and expires on November 26, 2026. Twenty Second Street operates and maintains a building and dock space used for sport fishing and a restaurant located at 141 W. 22nd Street in San Pedro. The proposed Order resetting compensation is for the four-year period effective retroactively November 27, 2022, through November 26, 2026. Proposed compensation under this compensation reset is the greater of the minimum annual rental amount of $279,000, or percentage of gross receipts. The proposed minimum annual rental amount of $279,000 represents an increase of $105,038.93, or 60.4%, relative to the current minimum annual rent of $173,961.07. The proposed compensation reset also includes a flexible monthly minimum rent and percentage rent payment schedule to account for significant variations in seasonal gross receipts associated with sport fishing, which is the primary economic driver for Twenty Second Street. The minimum annual rental amount which is paid on a monthly schedule will be adjusted annually thereafter by the Consumer Price Index (CPI) for the remainder of the compensation period.
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. 624 for the four-year period effective November 27, 2022, through November 26, 2026; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 624; and (4) adopt Resolution No.____________ and Order No.____________.
Regular Items (5 – 7)
Risk Management
Summary: Staff requests approval of an interim Agreement with Alliant Insurance Services, Inc. (Alliant) for interim insurance brokerage and risk management services, including pass-through payment services for the City of Los Angeles Harbor Department (Department) insurance premiums, while City Council considers approval of a pending five-year contract approved by the Board of Harbor Commissioners on February 23, 2023 for the same services (Pending Contract). The proposed agreement is for a term of one year and a not-to-exceed compensation amount of $6,100,000. The Department utilizes a Broker of Record to assist in procuring commercial property and casualty insurance to support operational needs and assist risk management staff in administering the Department’s insurance and risk management program. The current agreement for brokerage and risk management services with Alliant (Agreement 3568) expired on May 25, 2023, and will be replaced by the Pending Contract if it is approved by City Council. The Harbor Department will be financially responsible for the payment of expenditures 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 that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for outside consultants to perform this work than City employees; (3) approve the Agreement with Alliant for a one-year term and not-to-exceed amount of $6,100,000; (4) authorize the Chief Financial Officer to submit the above premiums discussed herein to the Primary Underwriter and/or the contracted Broker of Record (Alliant) who has the authority to receive and disburse payments to the various participating insurance underwriters on behalf of the Harbor Department; (5) authorize the Executive Director to execute and the Board Secretary to attest the Agreement; and (6) adopt Resolution No.____________.
Construction
Summary: Staff requests approval of Change Order No. 18 to Contract No. 2315 (Contract) for the Wilmington Waterfront Promenade and Building Demolition project (Project) with Sully-Miller Contracting Company (Contractor) for the not-to-exceed amount of $1,750,000. Change Order No. 18 authorizes the Contractor to place 2,550 cubic yards of rip rap rock below the tidal step area to protect and stabilize the exposed slope, resolve the additional obstructions encountered during steel pile driving when constructing the sheet pile wall, procure Arizona Onyx stone in lieu of Mexican Onyx tidal steps stone material, and place the remaining tidal step stones utilizing floating marine equipment. The City of Los Angeles Harbor Department (Harbor Department) will be financially responsible for the payment of expenses incurred under the Contract and proposed Change Order.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action has been previously evaluated pursuant to the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(i) of the Los Angeles City CEQA Guidelines; (2) find that in accordance with City Charter Section 1022, work covered under the Change Order can be performed more feasibly by an independent contractor rather than by City employees; (3) approve and authorize the Executive Director to execute Change Order No. 18 for a not-to-exceed amount of $1,750,000; and (4) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of a proposed Reimbursement Agreement (Agreement) with Howard Industrial Partners, LLC (Howard) to reimburse the City of Los Angeles Harbor Department (Harbor Department) one hundred percent of staff and consultant costs associated with the review and oversight of an environmental document for the construction of a proposed short-term trailer parking facility (Project) located at 1599 West John S. Gibson Boulevard. The Project is not located on Port of Los Angeles property, but a portion of the property is located within the Port Master Plan area, requiring the Harbor Department to issue a Coastal Development Permit (CDP) for site development. The Harbor Department has agreed to serve as Lead Agency for the purposes of the California Environmental Quality Act (CEQA) and as such must review the environmental document prepared by Howard’s selected consultants for consistency and accuracy. The proposed Agreement is for a term of three years with an estimated amount of $150,000. Howard is financially responsible for reimbursement of expenditures.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from CEQA in accordance with Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the proposed Reimbursement Agreement with Howard Industrial Partners, LLC to reimburse the City of Los Angeles Harbor Department for review and oversight costs of the environmental assessment for the construction of a proposed acre short-term trailer parking facility located at 1599 West John S. Gibson Boulevard for a contract term of three years and for an estimated base amount of $150,000; (3) authorize the Executive Director to execute and the Board Secretary to attest to, said Agreement for and on behalf of the Board; and (4) adopt Resolution No.____________.
K. Closed Session
1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
Harbor Performance Enhancement Center, LLC v. City of Los Angeles Harbor Department, et al., United States District Court Case No. 2:20-cv-03251
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.
Los Angeles Superior Court Case No. BS070017
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.
San Diego Superior Court Case No. 37-2021-00023385-CU-TT-CTL
4. 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
5. 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:
(two cases)
6. 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)
7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to 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
8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 953 with Everglades Company Terminal, Inc.:
Property: Berths 121-126, San Pedro
City Negotiator: Mike DiBernardo
Tenant Negotiator: Tom VanEynde
Negotiating Parties: City and Everglades Company Terminal, Inc.
Under Negotiation: Price and Terms
L. Adjournment