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, FEBRUARY 29, 2024 AT 10:00 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 February 8, 2024
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
None
H. Presentation
I. Level I Coastal Development Permit
The Executive Director has issued one (1) Level I CDP:
J. Board Reports of the Executive Director
Consent Items (1 – 3)
Construction & Maintenance
Summary: Staff requests approval of Change No. 1 to Purchase Order No. 39971-24 with Herc Rentals, Inc. The proposed change will increase the current contract, which is in its first renewal option, from $149,000 to $298,000. Should the second renewal option be exercised, the budgeted contract amount will be increased to an amount not to exceed $298,000. This annual contract provides rentals for construction equipment and heavy trucks as required from time to time 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. 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. 39971-24 with Herc Rentals, Inc. to increase the annual expenditure authority from $149,000 to $298,000 for the current contract period and approve an amount not to exceed $298,000 for the second renewal option; (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. 40022 with Beacon Sales Acquisition, Inc. dba Beacon Building Products, headquartered in Herndon, Virginia, with a local office presence in Pico Rivera, California, for the purchase of roofing materials for the World Cruise Center passenger terminal parking deck at Berth 93. The amount of this contract shall not exceed $400,000. 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 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 1(4) of the Los Angeles City CEQA Guidelines; (2) approve Contract No. 40022 with Beacon for the purchase of roofing materials in the amount of $400,000; (3) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40022 for and on behalf of the Board; and (4) adopt Resolution No. ___________.
Cargo Marketing
Summary: Staff requests approval of a third Temporary Order to amend Port of Los Angeles (Port) Tariff No. 4 (Tariff), Section Seven “Free Time, Wharf Demurrage, and Wharf Storage”, Items 720 and 780. Item 720 would be modified to include Saturdays and/or Sundays as part of the allowable free time on inbound containerized merchandise, provided the marine terminal (terminal) operator’s truck gates are announced or published as being open for container delivery on those days. Additionally, to deter Port terminal property from being used as a cargo storage facility, Item 780 would be modified to add a third demurrage tier for merchandise remaining on terminal for more than 10 days after the expiration of free time. This third Temporary Order is being proposed within the Board of Harbor Commissioners’ (Board) authority to adopt rates for up to 90 days. At the September 7, 2023 Board meeting, the Board approved Temporary and Permanent Orders amending the sections mentioned above with an effective date of October 1, 2023. Changes in the Tariff beyond a Temporary Order’s 90-day effective period require the City Council to approve a Permanent Order by Ordinance. The City Council has not calendared and approved the Permanent Order and Ordinance. The first Temporary Order expired on December 30, 2023; the second Temporary Order will expire on March 28, 2024; therefore, a third Temporary Order is being proposed to allow additional time for the Permanent Order to pass through the City Council approval process. This third Temporary Order, if approved, will become effective on March 29, 2024 and will expire in 90 days after the day it is published or upon execution of the Permanent Order by the City Council, whichever occurs first.
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, modifying rates and regulations in Section Seven “Free Time, Wharf Demurrage, and Wharf Storage”, Items 720 and 780, 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 a third Temporary Order No. ____________ with an effective date of March 29, 2024, to amend Port of Los Angeles Tariff No. 4, to modify rates and regulations in Section Seven “Free Time, Wharf Demurrage, and Wharf Storage”, Items 720 and 780; (4) authorize the Board Secretary to certify the adoption of a third 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 March 29, 2024, for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); and (5) adopt Resolution No. ___________.
Regular Items (4 & 5)
Environmental Management
Summary: Staff requests approval of an agreement with Yusen Terminals, LLC. (YTI) to implement a zero-emission yard tractor demonstration project (Project). The Project requires YTI to demonstrate two zero-emission yard tractors, that are human-operated, at the terminal property for three years in order to satisfy an environmental requirement identified as “Lease Measure AQ-4: Zero or Near-Zero Emissions Demonstration Project” contained in Permit No. 692. The Agreement sets out the respective costs and responsibilities between the City of Los Angeles Harbor Department (Harbor Department) and YTI. YTI is required to lease the demonstration equipment from its selected vendor and conduct the demonstration with periodic reports to the Harbor Department. The Harbor Department is required to install electrical charging infrastructure, reimburse YTI for the equipment lease payments and other related costs, and provide administrative oversight for the Project. The Harbor Department will be financially responsible for certain costs of the Project specified in the Agreement, including equipment lease costs, infrastructure equipment installation, and maintenance costs for a total estimated cost of $1,500,000.
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(i), of the Los Angeles City CEQA Guidelines; (2) approve the Agreement between the City of Los Angeles Harbor Department and Yusen Terminals, LLC.; (3) direct the Board Secretary to transmit the Agreement to the City Council for approval pursuant to Charter Section 373 and Los Angeles Administrative Code Section 10.5; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement upon approval by City Council; and (5) adopt Resolution No. ___________.
Engineering
Summary: Staff requests approval of a funding agreement, referred to herein as the Baseline Agreement with the California Transportation Commission (CTC) and the California Department of Transportation (Caltrans) for $14,936,000 of Trade Corridor Enhancement Program (TCEP) funds for the Maritime Support Facility Access/Terminal Island Rail System Grade Separation Project (Project). To receive the TCEP funds, the City of Los Angeles Harbor Department (Harbor Department) must enter into the proposed Agreement with the CTC and Caltrans. Upon approval by the Board, the Harbor Department will transmit this Agreement to the CTC for final approval, which is expected to occur at its May 2024 meeting. The Harbor Department is financially responsible for funding costs to complete the Project, net of any grants received.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively and statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines and Section 21080.13 of the State CEQA Guidelines; (2) approve the Maritime Support Facility Access/Terminal Island Rail System Grade Separation Project Baseline Agreement; (3) authorize the Executive Director to execute and the Board Secretary to attest to said agreement, for and on behalf of the Board; (4) authorize the Executive Director to execute future Baseline Agreement Amendments to account for revised project schedules, and/or revised project costs, for and on behalf of the Board, subject to the approval of the City Attorney as to form and legality; and (5) 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: (two cases)
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 910 with U.S. Borax, Inc.:
Property: 300 Falcon Street, Wilmington
City Negotiator: Marisa Katnich
Tenant Negotiator: Jacob Adessky
Negotiating Parties: City and U.S. Borax, Inc.
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 Revocable Permit 10-05 with Rancho LPG Holdings, LLC:
Property: Rail spur located on east side of North Gaffey Street at Westmont Drive, San Pedro
City Negotiator: Marisa Katnich
Tenant Negotiator: Glen Mears
Negotiating Parties: City and Rancho LPG Holdings, LLC
Under Negotiation: Price and Terms
L. Adjournment