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, MAY 23, 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
- Special Meeting of April 25, 2024
- Regular Meeting of May 7, 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
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 4)
Construction & Maintenance
Summary: Staff requests approval of Contract No. 40041 with Johnson Controls Fire – Protection LP of Cypress, CA for fire alarm and fire suppression system maintenance. The proposed Contract would be for a one-year term with two one-year renewal options. The amount of this agreement shall not exceed $5,600,000 annually, or a total of $16,800,000 for the duration of the three-year agreement if all options are exercised. The 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(4) 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 an agreement with Johnson Controls Fire – Protection LP utilizing a current agreement for such services with Sourcewell through their Contract No. 030421-JHN, a cooperative purchase agreement; award; (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. 40041 with Johnson Controls Fire – Protection LP in the amount of $5,600,000 for a period of one year, with two one-year renewal options in the same amount annually to be exercised by the Executive Director or his/her designee; (5) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40041 for and on behalf of the Board; and (6) adopt Resolution No. ___________.
Commission Office
Recommendation: Board resolve to (1) adopt subject Resolution No.___________.
Environmental Management
Summary: Staff requests approval of the Third Amendment to California Energy Commission (CEC) Grant Agreement No. 19-3666 for the Port of Los Angeles Advanced Infrastructure Demonstration Project. This Third Amendment will modify the Special Terms and Conditions attachment, allow for early release of retention funds held by the CEC, and extend the term of the Agreement until June 30, 2026. The extension request is due to external supply chain delays which impacted on the timeline. All other terms and conditions of the Agreement, including the CEC grant amount of $7,842,270, remain the same. The City of Los Angeles Harbor Department will be financially responsible for payment of Project costs estimated to be $11,349,155. However, after applying proceeds from the $7,842,270 CEC grant as well as $3,114,385 in other third party funding, staff anticipates the Harbor Department will ultimately be financially responsible for $392,500 in Project costs.
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. 19-3666 between the City of Los Angeles Harbor Department and the California Energy Commission for the Port of Los Angeles’ Advanced Infrastructure Demonstration Project; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Third Amendment to Grant Agreement No. 19-3666 with the California Energy Commission for and on behalf of the Board; and (4) adopt Resolution No. ___________.
Environmental Management
Summary: Staff requests approval of the Second Amendment to Subrecipient Agreement No. 20-3723 for the Port of Los Angeles Advanced Infrastructure Demonstration Project with West Basin Container Terminal and Wireless Advanced Vehicle Electrification, LLC. This Project is funded under a Grant Agreement with the California Energy Commission (CEC), Agreement No. 19-3666. A third amendment to Agreement No. 19-3666 is being considered under a separate Board Action. The proposed Second Amendment to Subrecipient Agreement No. 20-3723 will extend the term of the Agreement to June 30, 2026 and incorporate milestone date changes made to the third amendment to Grant Agreement No. 19-3666 with the CEC. The extension to the term of the Agreement is due to extended delays in the project timeline related to external supply chain impacts. All other terms and conditions of the Agreement will remain the same.
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 Second Amendment to Agreement No. 20-3723 between the City of Los Angeles Harbor Department, West Basin Container Terminal and Wireless Advanced Vehicle Electrification, LLC for the Port of Los Angeles’ Advanced Infrastructure Demonstration Project; (3) direct the Board Secretary to transmit the Second Amendment to the City Council for approval pursuant to City Charter Section 606; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Second Amendment to Agreement No. 20-3723 with West Basin Container Terminal and Wireless Advanced Vehicle Electrification, LLC for and on behalf of the Board; and (5) adopt Resolution No. ___________.
Proposed Regular Item (5)
Cargo & Industrial Real Estate
Summary: Staff requests approval of the following:
1. Permit No. 963 between Pasha Stevedoring & Terminals, L.P. and the City of Los Angeles Harbor Department for premises located at Berths 174-181 and Berths 206-209;
2. Settlement and Mutual Release of Claims Agreement between Pasha and the Harbor Department to resolve a dispute concerning past due compensation under Space Assignment No. 09-01 for Berths 206-209 for the period of 2009 to 2012; and
3. Two individual guaranty agreements furnished by The Pasha Group concerning Permit No. 963 and the Settlement Agreement, respectively.
The term of Permit No. 963 is five years, and the guaranteed compensation for Compensation Year 2024 will be $6,280,000 on 49.07 acres for the first year. Year one (i.e. Calendar Year 2024) compensation of $6,280,000 under the Permit will be pro-rated based upon a compensation year-end of December 31, 2024. Furthermore, the MAG will be adjusted in Calendar Years 2025, 2026, 2027 and 2028 based upon the year-over-year change in the Consumer Price Index, subject to a floor of 2 percent. Regarding the companion Settlement Agreement, Pasha agrees to pay $1,000,000 to resolve disputed Space Assignment charges that accrued between 2009 and 2012.
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 entering into Permit No. 963 is in the best interest of the City of Los Angeles despite certain exceptions to the City of Los Angeles Harbor Department’s Leasing Policy, Section XI, concerning a 2 percent non-refundable holdback on security instruments for a maintenance fund; (3) approve Permit No. 963 with Pasha Stevedoring & Terminals, L.P; (4) approve the Settlement Agreement with Pasha Stevedoring & Terminals, L.P.; (5) approve the Guaranties furnished by The Pasha Group concerning Permit No. 963 and the Settlement Agreement; (6) authorize the Executive Director to execute and the Board Secretary to attest to Permit No. 963 and the Settlement Agreement; 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 LEGAL COUNSEL – INITIATE LITIGATION
(Subdivision (d)(4) of Government Code Section 54956.9) (1 case)
Initiation of litigation pursuant to subdivision (d)(4) of Section 54956.9: (one
case)
6. 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)
7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect Fenix Marine Services, Ltd., Permit 733:
Property: 614 Terminal Way, San Pedro
City Negotiator: Marisa Katnich
Tenant Negotiator: Steven Trombley
Negotiating Parties: City and Fenix Marine Services, Ltd.
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 Trapac, LLC, Permit 881:
Property: 630 West Harry Bridges Blvd., Wilmington
City Negotiator: Marisa Katnich
Tenant Negotiator: Ron Triemstra
Negotiating Parties: City and Trapac, LLC
Under Negotiation: Price and Terms
L. Adjournment