Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, JANUARY 11, 2024 AT 9:00 AM
Board of Harbor Commissioners
Lucille Roybal-Allard, President
Diane L. Middleton, Vice President
Michael Muñoz
Edward R. Renwick
I. Lee Williams
ORDER OF BUSINESS
OPEN SESSION
A. Roll Call
B. Approval of the Minutes
- Regular Meeting of December 7, 2023
C. Executive Director Remarks
D. Comment from the Public on Non-Agenda Items
E. 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.
F. Reports of the Commissioners
G. Board Committee Reports
- Audit Committee Meeting of December 7, 2023
- Alameda Corridor Transportation Authority Governing Board Meeting of December 14, 2023
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 6)
Construction & Maintenance
Summary: Staff requests approval of Contract No. 40018 with Ferguson Enterprises, LLC, a Virginia limited liability company with a location in Pomona, California, for plumbing supplies, equipment, appliances, fittings, fixtures, trim and accessories. The proposed Contract will be for a one-year term with two, one-year renewal options for an amount not to exceed $200,000 for the initial year. The total amount of the Contract will not exceed $600,000 over three years, or $200,000 annually, if both options are exercised. Payment of expenses incurred under the proposed Contract will be the financial responsibility of the City of Los Angeles 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 Contract No. 40018 with Ferguson for the plumbing supplies, equipment, appliances, fittings, fixtures, trim and accessories in the amount of $200,000 for a period of one year, with two one-year renewal options in the amount of $200,000 per year to be exercised by the Executive Director or his/her designee in his/her discretion; (3) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40018 for and on behalf of the Board; and (4) adopt Resolution No.____________.
Construction & Maintenance
Summary: Staff requests approval of Change No. 1 to Purchase Order No. 39960-24 with Graybar Electric Company, Inc., a New York corporation with an office in Diamond Bar, CA. The change will increase the annual contract authority from $149,000 to $298,000 per year. The Harbor Department utilizes this Purchase Order to acquire electrical supplies for both maintenance and construction projects throughout the Port of Los Angeles. The requested increase is necessary to complete current and planned capital and maintenance projects. Purchase Order No. 39960 was executed in March 2022 with a one-year term and two one-year renewal options. The first renewal option was exercised commencing on March 1, 2023. Under the proposed Change Order, the spending authority for the first and second renewal option periods will increase by $298,000 in aggregate from $298,000 currently to $596,000 over two years. The Harbor Department will continue to be financially responsible for the payment of expenses incurred under the Purchase Order.
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 Purchase Order Change No. 1 to Purchase Order No. 39960-24 with Graybar to increase the annual expenditure authority from $149,000 to $298,000 for the current contract period and from $149,000 to $298,000 for the second renewal option period; (3) authorize the Executive Director to execute and the Board Secretary to attest to said purchase order change; and (4) adopt Resolution No.____________.
Construction & Maintenance
Summary: Staff requests approval of Contract No. 40027 with Lawrence Dale Sanchez dba Water Fountain Guy, located in Palos Verdes, California, for Harbor Gateway water features treatment and maintenance services. The proposed Contract will be for a one-year term with two, one-year renewal options for an amount not to exceed $260,000 for the initial year. If the two renewal options are exercised, $299,000 will be authorized for the second year and $343,850 for the third year. The total contract amount would not exceed $902,850 over a three- year period if the renewal options are exercised. The City of Los Angeles Harbor Department will be financially responsible for the payment of expenditures incurred under the proposed Contract.
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, work under the subject contract can be performed more feasibly by independent contractors than by City employees; (3) approve Contract No. 40027 with Water Fountain Guy for a term of one year with two, one-year renewal options with an annual compensation amount not to exceed $260,000 in the first year; not to exceed $299,000 in the first renewal option year; not to exceed $343,850 in the second renewal option year; for a total compensation amount not to exceed $902,850 if the renewal options are exercised by the Executive Director or his/her designee; (4) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40027 for and on behalf of the Board; and (5) adopt Resolution No.____________.
Construction & Maintenance
Summary: Staff requests approval of Contract No. 40001 with KONE Inc., a Delaware corporation, for modernization of five (5) escalators located at Berth 93, Los Angeles World Cruise Center. The proposed Contract would utilize an existing national cooperative contract for such services between Kansas City, Missouri, and KONE, pursuant to Omnia Partners cooperative arrangement. The amount of this Contract shall not exceed $2,800,000. The City of Los Angeles Harbor Department (Harbor Department) will be financially responsible for the payment of costs incurred under the proposed Contract.
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 (1) and Class 2 (3) 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 a cooperative purchase agreement with KONE Inc. utilizing KONE’s current agreement for such services with Kansas City, Missouri, General Services Department Contract No. EV2516 pursuant to Omnia Partners cooperative arrangement; (3) find that in accordance with Los Angeles City Charter Section 1022, work under the subject Contract can be performed more feasibly by independent contractors than by City employees; (4) approve Contract No. 40001 with KONE for escalator modernization at Berth 93, Los Angeles World Cruise Center, in the amount of $2,800,000; (5) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40001 for and on behalf of the Board; and (6) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of an Order resetting compensation under Permit No. 718 with Crowley Marine Services, Inc. P718 grants Crowley approximately 2.79 acres of land, wharf and water space at Berth 86 for an office building, shop facility, warehouse and parking lot to be used in connection with tugboat and barge services. P718 has been on holdover since November 24, 2016, and the proposed compensation reset would cover two successive five- year periods; the first from November 24, 2016 through November 23, 2021 and the second from November 24, 2021 through November 23, 2026 while negotiations for a successor permit to P718 continue. As of November 23, 2016, Crowley paid compensation of $6,590 per month. Pursuant to Section 3(b) of P718, once the Permit was placed on holdover, rent was increased to 150% of the compensation for the immediately preceding compensation period. Therefore, as of November 24, 2016, monthly rent was increased to $9,885 and has remained at that level. Due to the delays in executing a successor permit to P718, staff recommend executing the proposed Order resetting compensation under P718 while negotiations on a successor permit continue. Under the proposed Order, (i) monthly compensation for the first five-year period from November 24, 2016 through November 23, 2021 would remain at the holdover rate of $9,885 per month; and (ii) monthly compensation for the second five-year period from November 24, 2021 through November 23, 2026 would increase by $6,479.64, or 66%, from $9,885 currently to $16,364.64 as proposed. Given the retroactive nature of the proposed increase, Crowley would be required to make a one-time payment of $168,470.64 to cover the rent differential observed over 26 months from November 24, 2021 through January 23, 2024 as well as any additional amounts which may accrue beyond January 23, 2024 until the proposed Order is executed.
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. 718 with Crowley Marine Services, Inc. for the five-year period of (i) November 24, 2016, through November 23, 2021, and (ii) November 24, 2021, through November 23, 2026; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 718 with Crowley Marine Services, Inc.; and (4) adopt Resolution No.____________ and Order No.____________.
Commission Office
Recommendation: Board resolve to (1) adopt subject Resolution No.____________.
Regular Items (7 & 8)
Cargo & Industrial Real Estate
Summary: Staff requests approval of a non-binding Memorandum of Understanding (MOU) amongst the City of Los Angeles Harbor Department (POLA or Harbor Department), Los Angeles County Metropolitan Transportation Authority (Metro), Union Pacific Railroad Company (UPRR), Port of Long Beach (POLB), and the Alameda Corridor Transportation Authority (ACTA), regarding Metro’s proposed West Santa Ana Branch Transit Corridor (WSAB) project. The WSAB project will expand light rail passenger service along the West Santa Ana Branch Transit Corridor (WSAB) to connect southeast Los Angeles County to downtown Los Angeles and is proposed to be constructed within a portion of POLA-POLB jointly owned former UPRR San Pedro Branch Line, which is a designated Alameda Corridor emergency rail line. The proposed WSAB Light Rail Transit (LRT) line will not impact the operation of this rail line and the POLA has no objections to the currently proposed LRT line alignment contained in Metro’s draft Environmental Impact Report/Environmental Impact Statement (EIR/EIS). The purpose of the MOU is to coordinate the advancement of design and planning for construction, property interests, operation, and maintenance of the WSAB project. The term of the MOU is three years, and there is no financial impact related to this MOU.
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 Memorandum of Understanding amongst City of Los Angeles Harbor Department, the Los Angeles County Metropolitan Transportation Authority, Union Pacific Railroad Company, the Port of Long Beach and the Alameda Corridor Transportation Authority; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Memorandum of Understanding on behalf of the Board; and (4) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the proposed Cost Share Agreement between the City of Los Angeles Harbor Department and the Port of Long Beach to fund a Clean Air Action Plan Technology Advancement Program project with Crowley Marine Services to design, manufacture, and demonstrate a battery-plug-in hybrid tugboat for ship assist and harbor work. Crowley will work with the California Air Resources Board to approve the tugboat as a Zero- Emission Advanced Technology tug. Under the proposed Agreement, the Harbor Department will be financially responsible for funding $750,000, or 50%, of total TAP funding in the amount of $1,500,000 which will partially offset the $31,410,000 total cost of the tugboat. As lead agency, POLB will enter into an agreement with Crowley to implement the Project and will periodically invoice the Harbor Department for reimbursements up to the aggregate $750,000 authorized 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) approve the Cost Share Agreement between the City of Los Angeles Harbor Department and the Port of Long Beach in the amount of $750,000; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement for and on behalf of the Board of Harbor Commissioners; and (4) 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 – SIGNIFICANT EXPOSURE TO 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)
6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to LA Sky Harbor:
Property: 2800 Via Cabrillo Marina, San Pedro, CA 90731
City Negotiator: Michael J. Galvin
Tenant Negotiator: Frank Yuan
Negotiating Parties: City and LA Sky Harbor 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 San Pedro Forklift:
Property: 2418 E Sepulveda Blvd, Long Beach, CA 90810
City Negotiator: Marisa Katnich
Tenant Negotiator: Peter Balov
Negotiating Parties: City and San Pedro Forklift
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 Mortimer and Wallace:
Property: 2422 E Sepulveda Blvd, Long Beach, CA 90810
City Negotiator: Marisa Katnich
Tenant Negotiator: Dwight Robinson
Negotiating Parties: City and Mortimer and Wallace
Under Negotiation: Price and Terms
9. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Cal Marine:
Property: 201 E Wharf St, San Pedro, CA 90731
City Negotiator: Marisa Katnich
Tenant Negotiator: Anthony Vuoso/Je Hamby
Negotiating Parties: City and Cal Marine
Under Negotiation: Price and Terms
10. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to SA Recycling:
Property: 901 New Dock St, San Pedro, CA 90731
City Negotiator: Marisa Katnich
Tenant Negotiator: Terry Adams
Negotiating Parties: City and SA Recycling
Under Negotiation: Price and Terms
L. Adjournment