September 6, 2024
BOARD OF HARBOR COMMISSIONERS MEETING NOTICE
SUBJECT: SPECIAL MEETING – TUESDAY, SEPTEMBER 17, 2024
CANCELED MEETING – THURSDAY, SEPTEMBER 19, 2024
The Los Angeles Board of Harbor Commissioners are scheduled to meet for a Special Board Meeting on Tuesday, September 17, 2024 at 10:00am at the following location;
Port of Los Angeles Administration Building
Board Hearing Room, Second Floor
425 S. Palos Verdes Street
San Pedro, CA 90731
This specially scheduled meeting will be held in lieu of the canceled Regular Meeting on Thursday, September 19, 2024.
Please refer to the Port of Los Angeles website at Commission | Port of Los Angeles | Port of Los Angeles for meeting and agenda 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
San Pedro, California 90731
SPECIAL MEETING AGENDA
TUESDAY, SEPTEMBER 17, 2024 AT 10:00 AM
Board of Harbor Commissioners
Lucille Roybal-Allard, 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 September 5, 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 – 6)
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the proposed Fifth Amendment to Permit No. 899 (P899) with Pacific Battleship Center (Pacific Battleship), a museum and educational facility commonly referred to as the USS Iowa (Iowa). Under P899, Pacific Battleship has a forty-five (45) year term with a permit expiration date of May 24, 2057. The proposed Fifth Amendment to P899 extends the premises by 17,630 square feet and amends the permitted use to allow for the construction and operation of the Freedom of the Seas Park and Pavilion, a multi-purpose visitor, community and education center. Pacific Battleship has received an appropriation in the amount of $6.7 million through the State of California Department of Natural Resources towards the construction of the Freedom of the Seas Park and Pavilion. Pacific Battleship will be financially responsible for any excess costs related to the construction of the Freedom of the Seas Park and Pavilion.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action has been previously evaluated and is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(i) and Article III Class 4(8) of the Los Angeles City CEQA Guidelines; (2) approve the Fifth Amendment to Permit No. 899 with Pacific Battleship Center; (3) Direct the Board Secretary to transmit the Fifth Amendment to Permit No. 899 to the City Council for approval pursuant to Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Fifth Amendment for Permit No. 899 upon approval by the City Council; and (5) adopt Resolution No. ____________________.
Waterfront & Commercial Real Estate
2. RESOLUTION NO. ____________ - APPROVE REVOCABLE LICENSE 2024-13 WITH SAN PEDRO PUBLIC MARKET, LLC
Summary: Staff requests approval of Revocable License 2024-13 between the City of Los Angeles Harbor Department (Harbor Department) and San Pedro Public Market, LLC (SPPM). The proposed Revocable License 2024-13 will permit SPPM to host waterside, market vending and pop-up retail events over a one-year term at the San Pedro Town Square Area (Town Square Area). If the proposed Revocable License is approved, then SPPM will pay 3 percent of their monthly Gross Receipts from permitted activities which is consistent with SPPM’s current Lease 915 with the Harbor Department.
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 4(6) of the Los Angeles City CEQA Guidelines; (2) approve Revocable License 2024-13 for the period of September 17, 2024, through, September 16, 2025, with San Pedro Public Market, LLC; (3) authorize the Executive Director to execute and the Board Secretary to attest to Revocable License 2024-13; and (4) adopt Resolution No. __________.
Goods Movement
Summary: Staff requests adoption of a Resolution providing mutual agreements by approving a Notice of Mutual Agreements (NMA), which enables the Alameda Corridor Transportation Authority (ACTA) to extend the current Alameda Corridor (AC) Dispatching Agreement and Police and Security Services Agreement (collectively referred to as Agreements) with the BNSF Railway (BNSF) and Union Pacific Railroad (UPRR) by two years. Both Agreements expire on October 14, 2024. The Alameda Corridor (AC) Use and Operating Agreement (UOA) requires that the City of Los Angeles Harbor Department (Harbor Department), Port of Long Beach (POLB), BNSF, and UPRR collectively select the AC train operations dispatcher and security provider via an NMA. There are no financial impacts to the Harbor Department if these NMAs are approved, and these current Agreements are extended.
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 NMA 2024-2 that enables ACTA to amend the current Dispatching Agreement with the BNSF and UPRR to extend the term by two years, to October 14, 2026; (3) approve NMA 2024-3 that enables ACTA to amend the current Police and Security Services Agreement with the BNSF and UPRR to extend the term by two years, to October 14, 2026; (4) direct the Executive Director to transmit this Resolution to ACTA for further action pursuant to the Amended and Restated Alameda Corridor Use and Operating Agreement; and (5) adopt Resolution No. _________________.
Cargo Marketing
Summary: Staff requests the approval of a Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and Evolution Enterprises Holdings, Inc. (Evolution), to operate its facility within FTZ No. 202, Site 35, located at 16518 Valley Blvd., La Puente, CA 91744. Site 35 consists of 3,160 square feet of warehouse and office space on 0.072 acres located approximately 30 miles from the Port of Los Angeles. Evolution will operate its facility under the FTZ procedures as a multi-usage site. 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 Evolution (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 Evolution Enterprises Holdings, 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.____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval to exercise the second, five-year extension option to Agreement No. 14-3269 (Agreement) among Cal Pacific Land Services, Inc. (Cal Pacific), the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) (collectively, Ports). In addition to the extension of time, staff is also requesting additional funding in an amount not-to-exceed $1,257,227 over the five-year extension. Pursuant to the terms of the Agreement, the Ports may exercise the extension option upon concurrence of the Executive Director and Chief Executive Officer of each respective Port, and upon approval by the Board of Harbor Commissioners of both Ports. Further, the extension option is conditioned upon an increase in rates by the cumulative percentage increase in Consumer Price Index (CPI) from July 2019 to April 2024, which results in an increase of 21.1 percent. Cal Pacific oversees and manages approximately 800 jointly owned property agreements that span across approximately 49 miles of railroad property. The costs for services provided pursuant to the Agreement are split evenly between the Ports. The amount of the contract authority requested above represents the Harbor Department’s share of the total contract cost for the extension term and represents an increase of 19.4 percent or $204,062 when compared to the budget for 2019-2024. POLB staff plans to present the second extension for consideration at the POLB Board of Harbor Commissioners meeting in September 2024.
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 staff’s recommendation to exercise the second option to extend Agreement No. 14-3269 with Cal Pacific Land Services, Inc.; (3) Authorize the Executive Director to execute the extension letter for Agreement No. 14-3269; and (4) adopt Resolution No. ______________.
Engineering
Summary: Staff requests approval of Contract No. 40051 with Cavotec USA, Inc. for the purchase of an 11kV Towable Shore Power System (Cavotec “PowerMove”) as part of an Alternative Maritime Power (AMP) System at Berths 91-93, World Cruise Center, in the amount of $1,182,084.38. The City of Los Angeles Harbor Department (Harbor Department) will be financially responsible for the payment of expenses 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) approve Contract No. 40051 with Cavotec USA, Inc. for the purchase of an 11kV Towable Shore Power system (Cavotec “PowerMove”) in the amount of $1,182,084.38 for the Berth 91-93 World Cruise Center; (3) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40051 for and on behalf of the Board of Harbor Commissioners; and (4) adopt Resolution No. __________.
Regular Items (7 – 10)
Environmental Management
Summary: Staff requests approval of the proposed First Amendment (Amendment) to Memorandum of Understanding (MOU) No. 19-3653 with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (GWMA) and the Toxic Pollutants in Dominguez Channel and Greater Los Angeles and Long Beach Harbor Waters Total Maximum Daily Load (Harbor Toxics TMDL) responsible parties to perform monitoring and related services required by the Harbor Toxics TMDL as well as to establish a cost-share agreement amongst the responsible parties. The proposed Amendment will extend the MOU by five years to December 31, 2029, and increase the City of Los Angeles Harbor Department’s (Harbor Department) cost share obligation by $547,820 from $265,655 currently to $813,475 as proposed. The Harbor Department will be financially responsible for the additional expenses incurred under the proposed Amendment.
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) approve the First Amendment to MOU No.19-3653 with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority and Harbor Toxics Total Maximum Daily Load responsible parties for the reimbursement to cover the City of Los Angeles Harbor Department’s cost share obligation of $547,820 over a five-year period; (3) authorize the Executive Director to execute and Board Secretary to attest to said Amendment for and on behalf of the Board; and (4) adopt Resolution No. ___________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of a First Amendment to Memorandum of Understanding (MOU) with the Los Angeles Department of Water & Power (LADWP). The original MOU pertaining to Parcels B and C in the contemplated land transfer between Harbor Department (Harbor) and LADWP as a part of the Wilmington Waterfront Promenade and Avalon Promenade and Gateway Projects detailed responsibilities related to remediation, reimbursement, construction, maintenance and operations of the planned Avalon Promenade and Gateway Project on Parcels B and C after the original 2019 ROE has expired. The proposed First Amendment to MOU pertaining to Parcels B and C changes remediation responsibility for Parcel B from the Harbor Department over to LADWP. LADWP Board of Commissioners approved the MOU Amendment on August 27, 2024. Use of Parcels B and C under the original MOU is being provided rent-free, therefore the Harbor Department’s financial obligations will not be impacted by the approval of the proposed First Amendment to 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) find that it is in the best interest of the Harbor Department to approve the First Amendment to the Memorandum of Understanding with the Los Angeles Department of Water & Power to enter Los Angeles Department of Water & Power property for purposes of defining remediation responsibilities for Parcel B; (3) approve the First Amendment to the Memorandum of Understanding with Los Angeles Department of Water & Power; (4) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment to the Memorandum of Understanding; and (5) adopt Resolution No. ____________.
Engineering
Summary: Staff requests approval of a Memorandum of Agreement (MOA) between the Department of Army (DOA) represented by the U.S. Army District Commander, Los Angeles District and the City of Los Angeles, Harbor Department (Department) for the transfer of $60,606,000 for maintenance dredging and related work to non-federal berths which was appropriated in fiscal year 2024 by the DOA. The funds are to be used for “expanded uses” as defined by Section 2106 of the Water Resources Reform and Development Act of 2014, as amended (33 U.S.C. 2238c) (hereinafter “Section 2106”), and Section 102 of the Water Resources Development Act of 2020; which includes maintenance dredging of non-Federal berths and disposal of legacy contaminated sediment related to dredging berths and Federal navigation channels, repair and seismic retrofit of existing in-water structures, and maintenance of slope stability of existing dikes.
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 Memorandum of Agreement between the City of Los Angeles Harbor Department and the Department of Army; (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 MOAs with the Department of the Army to receive funds for future years pursuant to Section 2106 of the Water Resources Reform and Development Act of 2014, as amended and Section 102 of the Water Resources Development Act of 2020; and (5) adopt Resolution No. ____________.
Cargo Marketing
Summary: Staff requests approval of a second Temporary Order to amend Port of Los Angeles Tariff No. 4 (Tariff), effective September 29, 2024, which would implement a 3.6 percent General Rates Increase (GRI), applicable to Tariff No. 4 rated tariff items, excluding rated tariff items that currently have a scheduled rate increase. This second Temporary Order is being proposed within the Board of Harbor Commissioners’ (Board) authority to adopt rates for up to 90 days. At the June 6, 2024 Board meeting, the Board approved Temporary and Permanent Orders amending various sections of Tariff No. 4 increasing rated tariff items by 3.6 percent. Changes in the Tariff require City Council approval. The City Council has not calendared and approved the Permanent Order and Ordinance. The first Temporary Order will expire on September 28, 2024; therefore, a second Temporary Order is proposed to allow additional time for the Permanent Order to pass through the City Council approval process. This second Temporary Order, if approved, 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) adopt second Temporary Order No. with an effective date of September 29, 2024, to amend Port of Los Angeles Tariff No. 4, increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Seven ”Free Time, Wharf Demurrage, and Wharf Storage”, Items 780 and 790; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises”, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930; (3) authorize the Board Secretary to certify the adoption of second 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 September 29, 2024, for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); 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 – 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 to Successor Permit with LA Sky Harbor, LLC (LASH):
Property: Double Tree by Hilton Hotel at 2800 Via Cabrillo Marina, San Pedro, California
City Negotiators: Michael Galvin
Tenant Negotiator: Frank Yuan
Negotiating Parties: City and LA Sky Harbor, LLC (LASH)
Under Negotiation: Price and Terms
L. Adjournment