Los Angeles Board of Harbor Commissioners
Banning's Landing Community Center
100 E. Water Street
Wilmington, California 90744
REGULAR MEETING AGENDA
THURSDAY, JUNE 12, 2025 AT 10:00 AM
Board of Harbor Commissioners
Lucille Roybal-Allard, President
John A. Pérez, Vice President
Yolanda M. De La Torre
Edward R. Renwick
I. Lee Williams
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ORDER OF BUSINESS
OPEN SESSION
A. Roll Call
B. Approval of the Minutes
- Regular Meeting of May 22, 2025
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. Special Order of the Day – Vacancy and Recruitment & Retention Reporting
Public Hearing
1(a) VACANCY AND RECRUITMENT & RETENTION REPORTING IN ACCORDANCE WITH GOVERNMENT CODE SECTION 3502.3
Pursuant to Section 3502.3 of the California Government Code, Section 3502.3 requires that each public agency within the State presents the status of vacancies as well as recruitment and retention efforts during a public hearing before the governing board (the Los Angeles Board of Harbor Commissioners) at least once per fiscal year prior to the adoption of the final budget.
Human Resources
Summary: Staff requests the Board of Harbor Commissioners receive and file the Harbor Department Vacancy Reporting as required by the California Assembly Bill No. 2561 which added Section 3502.3 to the California Government Code in September 2024. Section 3502.3 requires that each public agency within the State presents the status of vacancies as well as recruitment and retention efforts during a public hearing before the governing board (the Los Angeles Board of Harbor Commissioners) at least once per fiscal year prior to the adoption of the final budget. We were notified of this new requirement by staff of the Office of the City Administrative Officer (CAO) on May 6, 2025 The CAO will present to the City Council total position vacancies in Council-controlled departments and has instructed proprietary departments to provide position vacancies to their respective governing boards. The recognized employee organization for each bargaining unit is also to be provided the opportunity to make a presentation at the public hearing. The request to receive and file the vacancy reporting and holding the associated hearing are administrative actions and there is no associated financial obligation.
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) hold a public hearing regarding status of vacancies prior to adoption of the Harbor Department 2025-26 budget in accordance with Government Codes 3502.3; (3) receive and file the status of Harbor Department vacancies provided for public hearing prior to the adoption of the Fiscal Year 2025-26 budget; and (4) adopt Resolution No.____________.
K. Board Reports of the Executive Director
Consent Items (2 – 9)
Commission Office
Recommendation: Board resolve to (1) adopt Resolution No.___________.
Construction & Maintenance
Summary: Staff requests the approval of Bid No. F-1226 (Contract) with Gemini Forest Products (Gemini) of Los Alamitos, California, for the purchase and delivery of treated Ammoniacal Copper Zinc Arsenate (ACZA) wooden piles, such as fendering piles, bearing piles, and dolphin piles. The proposed Contract shall not exceed $689,665 annually, or a total of $2,068,995, including sales and lumber taxes, for the duration of the three-year Contract if all options are exercised. These piles are used by the City of Los Angeles Harbor Department’s (Harbor Department) Construction and Maintenance Division’s (C&M) Wharf Maintenance Section to replace old timber piles when necessary. 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 2(2) of the Los Angeles City CEQA Guidelines; (2) approve Bid No. F-1226 with Gemini in the amount of $689,665 for the purchase and delivery of treated ACZA piles for a period of one year, with two one-year renewal options in the same amount annually for a total compensation amount not to exceed $2,068,995 if the renewal options are exercised and authorized by the Executive Director or his/her designee; (3) authorize the Executive Director to execute and the Board Secretary to attest to Bid No. F-1226 for and on behalf of the Board; and (4) adopt Resolution No.___________.
Construction & Maintenance
Summary: Staff requests approval of the award of a one-year agreement with two one-year renewal options with Knorr Systems Int’l, LLC (KSI) of Santa Ana, California for maintenance and repair services of spray park equipment for the three (3) fountains at Wilmington Waterfront Park located at 1004 West C. Street in Wilmington, California. The amount of this agreement shall not exceed $250,000 per year, and the total amount of this agreement shall not exceed $750,000 if both renewal options are exercised. Payment of expenditures incurred under the proposed Agreement are the financial responsibility of the City of Los Angeles Harbor Department (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) find that in accordance with Los Angeles City Charter Section 1022, work under the subject agreement can be performed more feasibly by an independent contractor than by City employees; (3) approve Agreement No.__________ with KSI in the amount of $250,000 per year for a period of one year, with two one-year renewal options for a not-to-exceed three-year maximum of $750,000; (4) authorize the Executive Director to execute and the Board Secretary to attest to said agreement for and on behalf of the Board; and (5) adopt Resolution No.___________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of: (i) the Second Amendment to Permit No. 905 (Permit) with Fisherman’s Pride Processors, Inc. dba Neptune Foods (Neptune) concerning the first of two five-year options to extend the term; (ii) an Order approving the first option to extend the term from March 27, 2024, to March 26, 2029; and, (iii) an Order resetting compensation under the Permit for the extension period. Approval of the proposed action will increase minimum annual rent by approximately 17 percent from $1,064,060.23 to $1,244,076.25 and increase percentage rent of fish products from $0.005/pound to $0.0058/pound and other protein from $0.001/pound to $0.0012/pound, effective March 27, 2024. Thereafter, annual increases for percentage rent and minimum annual rent will be applied based on the year-over-year change in the Consumer Price Index (CPI), subject to a floor of zero percent. The Amendment and Orders are subject to Neptunes payment of the $127,808.36 option fee as a condition of the effectiveness of the proposed extension.
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) approve the Second Amendment to Permit No. 905 retroactive to March 25, 2024; (3) approve the Order extending the term of Permit No. 905 for five additional years with Fisherman’s Pride Processors, Inc, dba Neptune Foods retroactive to March 27, 2024; (4) approve the Order resetting compensation under Permit No. 905 with Fisherman’s Pride Processors, Inc, dba Neptune Foods retroactive to March 27, 2024; (5) direct the Board Secretary to transmit the Second Amendment and Orders to Permit No. 905 to the City Council for approval pursuant to Section 606 of the City Charter; (6) authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment and Orders upon approval by the Board and City Council; and (7) adopt Resolution No.___________, and Order Nos._________ and _________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of Revocable Permit No. 25-06 (Revocable Permit) with Avocet Energy Storage, LLC, a Delaware Limited Liability Company (Avocet), for surface, subsurface, and aerial use of City of Los Angeles Harbor Department (Harbor Department) property to install a high-voltage transmission line that would cross the Union Pacific (UP) Intermodal Container Transfer Facility (ICTF) located at 2401 E. Sepulveda Boulevard, Los Angeles, CA, 90810. Under the proposed Revocable Permit, Avocet would pay $150,834.00 for each six-month period, subject to proration if the compensation period is shorter than six months. Effective July 1, 2026, and annually thereafter, rent would increase by the greater of two percent or the annual year-over-year increase in the Consumer Price Index (CPI).
Recommendation: Board resolve to (1) find that since approval of the Initial Study/Mitigated Negative Declaration by the City of Carson (State Clearinghouse No. 2024040695) for the Avocet Energy Storage System Project, there have been (1) no substantial changes to the Project which would require major revisions of the Initial Study/ Mitigated Negative Declaration (IS/MND), (2) no substantial changes with respect to the circumstances under which the Project is being undertaken which would require major revisions in the IS/MND, and (3) no new information has become available which was not known or could have been known at the time the IS/MND was certified as complete; (2) adopt the Findings of Fact; (3) adopt the mitigation measures contained in the Mitigation Monitoring and Reporting Plan that pertain to the construction and operation of the Gen-Tie Line Project of the certified IS/MND; (4) authorize the Environmental Management Division to file the Notice of Determination with the Los Angeles County Clerk and the State Clearinghouse; (5) find that the Director of Environmental Management has determined that the proposed action has been previously assessed in the Avocet Energy Storage System Initial Study/ Mitigated Negative Declaration (State Clearinghouse No. 2024040695), adopted by the City of Carson on August 6, 2024; (6) approve Revocable Permit No. 25-06 with Avocet Energy Storage, LLC; (7) approve the Guaranty Agreement furnished by Arevon Energy JV HoldCo V, LLC; (8) authorize the Executive Director to execute and the Board Secretary to attest to Revocable Permit No. 25-06 upon approval by the Board; and (9) adopt Resolution No.___________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the First Amendment (Amendment) to Agreement No. E7270 (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Paragon Partners Consultants, Inc. (Paragon) for consulting and professional assistance in commercial planning, analysis and technical real estate services to augment existing staffing resources at the Harbor Department. The proposed Amendment will: i) extend the Agreement by two years for a total aggregate term of three years; and ii) increase the not-to-exceed compensation authority amount from $90,000 to $180,000. The Harbor Department will continue to be financially responsible for payment of costs incurred under the 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 the Harbor Department does not employ sufficient personnel to perform the required services, which are more feasibly and economically undertaken on a temporary basis by an independent contractor; (3) approve the First Amendment to Agreement No. E7270 between the City of Los Angeles Harbor Department and Paragon Partners Consultants, Inc.; (4) authorize the Executive Director to execute, and the Board Secretary to attest to, the First Amendment to Agreement No. E7270; and (5) adopt Resolution No.___________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the annual budget for Fiscal Year (FY) 2026 for the operation of Cabrillo Way Marina (CWM) by Westrec SMI OPCO, LLC (Westrec SMI) under Agreement No. 13-3125 (Agreement). The Agreement was approved by the Board of Harbor Commissioners (Board) in 2013 for Westrec Marina Management, Inc. (Westrec) to manage CWM as a fee operator, while passing through all expenses and revenue to the City of Los Angeles Harbor Department (Harbor Department). At its meeting on November 9, 2022, the Board approved the Second Amendment to the Agreement enabling Westrec to transfer its operation, management and maintenance of CWM to a new management company, Westrec SMI, effective January 1, 2023. Westrec SMI is a subsidiary of Suntex Marina Investors, LLC (SMI), an owner, operator, manager and developer of high-quality coastal and inland marina properties located throughout the United States. Westrec SMI’s estimated FY 2026 revenue is $9,770,975 with total expenses of $4,621,542. FY 2026 proposed net income of $5,149,433 results in a net profit margin of 52.7 percent, a decrease from the FY 2025 approved budget margin of 56.1%.
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 Westrec SMI OPCO, LLC annual budget for Fiscal Year 2026 under Agreement No. 13-3125; and (3) adopt Resolution No.___________.
Internal Audit
Summary: Staff requests approval to expend up to $598,580 to conduct the Industrial, Economic, and Administrative Survey (IEAS or IEA Survey) of the City of Los Angeles Harbor Department (Harbor Department) under City of Los Angeles (City) Contract No. C-200448 (Contract). The Contract is between KPMG LLP (KPMG) and the City of Los Angeles, Office of the Controller, with a not-to-exceed amount of $598,580 and terminates on December 31, 2026. Los Angeles City Charter Section 266 requires that an IEAS of the Harbor Department be conducted every five years and mandates that the Harbor Department cover the costs associated with the survey. As such, payment of costs incurred under the Contract are the financial responsibility of the 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) authorize the Harbor Department to compensate KPMG directly in accordance with the Deliverable Payment Schedule for the IEAS of the Harbor Department under City Contract No. C-200448, which terminates on December 31, 2026, and has a not-to-exceed amount of $598,580; (3) authorize direct payment to KPMG, upon receipt of an approved invoice from the Controller’s Office as per the terms of Contract No. C-200448; and (4) adopt Resolution No.___________.
Regular Items (10 – 13)
Goods Movement
Summary: Staff requests approval of the Fifth Amendment to Operating Agreement No. 1989 (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Pacific Harbor Line, Inc. (PHL), which will extend the term of the Agreement by one year from December 31, 2025, to December 31, 2026. PHL is a shortline railroad that is the current Port of Los Angeles (POLA)-Port of Long Beach (POLB) complex rail operator (PRO). The PRO provides rail services for POLA terminals, which also includes interchanging trains with the BNSF Railway (BNSF) and Union Pacific Railroad (UPRR). The Harbor Department and the POLB each have an operating agreement with PHL. On May 19, 2025, the Harbor Department and POLB released a joint request for proposals (RFP) for selecting the next PRO. The proposed Amendment is needed to complete the RFP process and authorize commencement of operations with the selected PRO. There are no financial impacts to the Harbor Department as PHL will continue to pay rent.
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 Fifth Amendment to Agreement No. 1989 with PHL to extend the term from its current expiration of December 31, 2025 to December 31, 2026; (3) direct the Board Secretary to transmit the Resolution and Fifth Amendment to the City Council for approval pursuant to Section 373 of the City Charter and Section 10.5 of the City Administrative Code; and (4) adopt Resolution No.___________.
Financial Planning & Analysis
Summary: Staff requests approval of the Fiscal Year (FY) 2025/26 Proposed Annual Budget (Proposed Budget) of $2,705,630,103. The Proposed Budget is aligned with the 2018 – 2022 Strategic Plan (Strategic Plan) and will enable the City of Los Angeles Harbor Department (Harbor Department) to meet its commitments in the upcoming fiscal year. Adoption of the Proposed Budget will position the Port of Los Angeles (Port) to deliver value to its customers by providing superior infrastructure, promoting efficient operations, and forging strong and lasting relationships with its stakeholders.
The Proposed Budget includes sources and appropriations of funds as follows:
TABLE 1: SOURCES AND APPROPRIATIONS OF FUNDS
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Sources:
|
|
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Appropriations:
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|
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Operating Receipts
|
$ 657,587,468
|
|
Operating Expenses
|
$ 427,084,553
|
|
Non-Operating Receipts
|
244,567,818
|
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Non-Operating Expenses
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130,035,063
|
|
Grant Receipts (Capital)
|
75,667,503
|
|
Capital Budget
|
278,124,617
|
|
Debt Issuance Proceeds
|
--
|
|
Debt Repayments & Other
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39,233,138
|
|
|
|
|
|
|
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Available Cash:
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|
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Projected Year-End Balances:
|
|
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Unrestricted Funds
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1,535,576,796
|
|
Unappropriated Balance
|
1,597,922,214
|
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Restricted Funds
|
192,230,518
|
|
Restricted Cash
|
233,230,518
|
|
Total Sources
|
$2,705,630,103
|
|
Total Appropriations
|
$2,705,630,103
|
The Proposed Budget represents the ongoing commitment of Harbor Department staff to operate and maintain the Port in a fiscally sound manner according to the guidelines, policies, and direction set forth by the Board of Harbor Commissioners (Board). Furthermore, the Proposed Budget complies with the Board-approved Financial Policies that relate to debt rating, debt service coverage, and reserve levels.
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) adopt the Fiscal Year 2025/26 Proposed Annual Budget for the City of Los Angeles Harbor Department and appropriate funds in accordance herewith, pursuant to Section 511(b) of the City Charter; (3) authorize the Executive Director, or his/her designee, to make any technical adjustments consistent with the Board action(s) to the Fiscal Year 2025/26 Proposed Annual Budget documents in the implementation of this budget; (4) approve the transfer of $8,731,465 from the Harbor Revenue Fund 702, Account 100000 (Cash Harbor Fund – Unrestricted) to the Harbor Special Operating Fund 74J, Account 100045 (Special Pool Cash/Investments – Unrestricted); (5) direct the Board Secretary to transmit the Resolution and Annual Budget to the Mayor and Controller pursuant to Section 511(b) of the City Charter; and (6) adopt Resolution No.___________.
Human Resources
Recommendation: Board resolve to (1) adopt subject Resolution No.____________.
Human Resources
Recommendation: Board resolve to (1) adopt subject Resolution No.____________.
L. Closed Session
1. 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)
2. 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)
3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
Union Pacific Railroad Company, Inc. v. Port of Long Beach; Long Beach Board of Harbor Commissioners; Port of Los Angeles; Los Angeles Board of Harbor Commissioners; et al.
Los Angeles Superior Court Case No. 25STCP00712
4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Trapac, LLC:
Property: 630 West Harry Bridges Blvd., Wilmington
City Negotiator: Marisa Katnich
Tenant Negotiator: Cameron Thorpe
Negotiating Parties: City and Trapac, LLC
Under Negotiation: Price and Terms
5. 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: Marisa Katnich
Tenant Negotiator: Xu FeiPan
Negotiating Parties: City and China Shipping Holding Company, Ltd.
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 a proposed permit with Yusen Terminals LLC:
Property: 701 New Dock Street, Terminal Island
City Negotiators: Michael DiBernardo/Marisa Katnich
Tenant Negotiator: Alan McCorkle
Negotiating Parties: City and Yusen Terminals LLC
Under Negotiation: Price and Terms
7. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code Sections 54957, and Los Angeles City Charter Section 604(b))
Title: Harbor Department Executive Director
M. Adjournment