REGULAR MEETING AGENDA
THURSDAY, MAY 3, 2018 AT 8:30 A.M.
Board of Harbor Commissioners
President Jaime L. Lee
Vice President David Arian
Commissioner Lucia Moreno-Linares
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
__________________________________________________________________________________
ORDER OF BUSINESS
OPEN SESSION
A. Roll Call
B. Executive Director Remarks
C. Comments from the Public on Non-Agenda Items
D. Report from the Neighborhood Council Representatives - An opportunity for a Neighborhood Council to present a Resolution or Motion filed with the Los Angeles Harbor Department to be presented to the Board as it relates to any agenda item being considered or under the purview of the Harbor Department.
E. Reports of the Commissioners
F. Board Committee Reports
1. Audit Committee Meeting of April 19, 2018
G. Approval of the Minutes
1. Regular Meeting of April 19, 2018
H. Presentation
I. Level I Coastal Development Permit
J. Special Order of the Day - Level II Non-Appealable Coastal Development Permit
Public Hearing
Pursuant to the California Coastal Act of 1976, as amended and the Port of Los Angeles' certified Port Master Plan, notice is hereby given to all interested persons and organizations that the Los Angeles Board of Harbor Commissioners will hold a public hearing to receive public comments prior to considering the following for a Coastal Development Permit.
Planning & Strategy
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve a Level II non-appealable Coastal Development Permit (CDP) No. 18-05 to Space Exploration Technologies Corp. (SpaceX). The proposed CDP would permit SpaceX to develop a water access dependent transportation vessels manufacturing facility at Berth 240 on Terminal Island as outlined in Application for Port Permit (APP) No. 170117-008. The proposed project (Project) would be developed on a total leasable area of approximately 19 acres with an approximate 10-acre disturbance area of the site that is currently vacant land, formerly occupied by the Southwest Marine shipyard, along the Main Channel. The proposed Project includes construction of an approximately 203,500 square-foot prefabricated building that would be approximately 105 feet tall. Up to four above ground bulk storage tanks of refrigerated gases nitrogen, oxygen, and noble gases helium and argon are included under CDP No.18-05. SpaceX is financially responsible for the entirety of the approximately $42 million project cost. Staff recommends approval of CDP No. 18-05.
Recommendation: Board resolve to (1) hold a public hearing for the proposed Coastal Development Permit No. 18-05, a Level II non-appealable permit; (2) find that the Director of Environmental Management has determined that the proposed action has been previously evaluated pursuant to the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(i) of the Los Angeles City CEQA Guidelines; (3) find that the proposed project conforms with the Port of Los Angeles certified Port Master Plan; (4) upon closure of the public hearing, resolve to approve the issuance of Coastal Development Permit No. 18-05, consistent with the project description listed on Application for Port Permit No. 170117-008, and direct the Director of Planning and Strategy to execute and issue said permit on behalf of and as the designee of the Executive Director; and (5) adopt Resolution No.____________.
K. Board Reports of the Executive Director
Consent Items (2 - 5)
Information Technology
Summary: Staff requests approval of the First Amendment to Agreement No. 17-3517 (First Amendment) with Petroleum Telcom, Inc. (Telcom) for the Port Police Radio System Rebanding Project, Phase I. The proposed First Amendment will extend Agreement No. 17-3517 by one additional year, for a total of two years, to August 31, 2019. The total not-to-exceed compensation amount is unchanged at $1,188,724. The requested time extension is required due to the time required to obtain permits to construct the radio infrastructure. The recommendation to enter into Agreement No. 17-3517 was based on a competitive Request for Proposals (RFP) process conducted by the City of Los Angeles Harbor Department (Harbor Department). The Harbor Department will continue to be financially responsible for payment of services rendered under the Agreement.
Recommendation: Board resolve to (1) find that the Director of Environmental Management had 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 First Amendment to extend Agreement No. 17-3517 by one additional year, for a total duration of two years; (3) authorize the Executive Director to execute and the Board Secretary to attest; and (4) adopt Resolution No. ____________.
Media Relations
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the Board of Harbor Commissioners (Board) to approve the First Amendments (Amendments) to Agreement No. 15-3325 with Dotty Diemer dba DDK Communications, Agreement No. 15-3326 with Natalie Shore Peterson and Agreement No. 15-3327 with Full Vision Productions, LLC (Writers Agreements). The Amendments extend the term of the Agreements by two years through June 30, 2020 and increases the compensation by $240,000, with the same annual allocation of $120,000 as the first three years of the Writers Agreements. The Writers Agreements are being extended due to the writers’ subject matter expertise on topics such as the environment and international commerce, and their success in delivering quality materials on tight deadlines. Each of these consultants are Very Small Business Enterprises (VSBE), while two are also Women Business Enterprises (WBE). The City of Los Angeles Harbor Department (Harbor Department) is financially responsible for payment of expenses under the proposed agreements.
Recommendation: Board resolve to (1) find that the Director of Environmental Management had 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, it is more feasible for outside contractors to perform this work than City employees; (3) approve the First Amendments to Agreement No. 15-3325 with Dotty Diemer dba DDK Communications, Agreement No. 15-3326 with Natalie Shore Peterson and Agreement No. 15-3327 with Full Vision Productions, LLC, extending the three-year term to a total of five years with $240,000 additional compensation for a total of $600,000 for the entire five years term; (4) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendments to Agreement No. 15-3325, Agreement No. 15-3326 and Agreement No. 15-3327; and (5) adopt Resolution No.___________.
Construction and Maintenance
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve the award of a one-year annual contract with two one-year renewal options to The Jankovich Company of San Pedro, CA for marine delivered fuel to be used by City of Los Angeles Harbor Department (Harbor Department) vessels. The amount of this contract is not to exceed $306,000 for the initial year. If the two renewal options are exercised, $306,000 will be authorized annually for each year for an overall total not to exceed amount of $918,000. Harbor Department vessels currently run on ultra low sulfur diesel fuel or gasoline. The contract is 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) in accordance Article II, Section 2(f) of the Los Angeles City CEQA Guidelines; (2) award Contract No. 39854 with The Jankovich Company for a term of one year with two one-year renewal options for the annual not to exceed amount of $306,000 per year, or a total compensation amount not to exceed of $918,000, and authorize said expenditures; (3) authorize the Executive Director to execute Contract No. 39854; and (4) adopt Resolution No.___________.
Construction and Maintenance
5. RESOLUTION NO.____________ - INCREASE CONTRACT AUTHORITY AMOUNT FOR ANNUAL PURCHASE ORDER NO. 39795-18 WITH HERC RENTALS INC.
Transmittal 1
Transmittal 2
Summary: Staff requests that the Board of Harbor Commissioners approve an increase in the expenditure authority for Purchase Order No. 39795-18 with Herc Rentals Inc. (Herc) of Carson, California, currently set at the amount of $150,000 per year, to $455,000 in the current contract period and $380,000 in the succeeding contract period. This annual contract, now in its second year and which will expire on September 30, 2018, provides for the rental of a variety of construction equipment and heavy duty trucks required for both maintenance and construction projects throughout the Port of Los Angeles (Port). The requested increase is necessary to complete current and planned capital and maintenance projects. The Harbor Department is responsible for the payment of expenses under this 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 Purchase Order Change No. 2 to Purchase Order No. 39795-18 with Herc Rentals Inc. to increase the annual expenditure authority from $150,000 to $455,000 for the current contract period and from $150,000 to $380,000 for the third and final contract period; (3) authorize the Executive Director to execute and the Board Secretary to attest to said purchase order change; and (4) adopt Resolution No.____________.
Regular Items (6 - 9)
Waterfront & Commercial Real Estate
6. RESOLUTION NO.____________ - ORDER APPROVING COMPENSATION RESET UNDER PERMIT NO. 634 WITH SHELL OIL COMPANY
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the compensation reset under Permit No. 634 (P634) with Shell Oil Company (Shell) for the five-year period of February 12, 2018, to February 11, 2023. P634 grants Shell property at Berths 167-169 for the construction, operation, modification, and maintenance of a liquid bulk terminal and related uses. Permit No. 634 has a 35-year term, effective February 12, 1988, through February 11, 2023. Compensation is comprised of fixed land rent, subject to reset, and applicable charges pursuant to Tariff No. 4. The current five-year compensation period began on February 12, 2013 and ended on February 11, 2018. As required by P634 and Los Angeles City Charter Section 607(b), compensation for Shell must be adjusted for the five-year period of February 12, 2018, through February 11, 2023. The proposed annual fixed land rent is $1,589,160, an increase of 38% from the existing compensation of $1,152,140 per year. An amendment to include Consumer Price Index (CPI) adjustments is being presented to the Board of Harbor Commissioners concurrently.
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. 634 with Shell Oil Company for the five-year period of February 12, 2018, through February 11, 2023; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 634; and (4) adopt Resolution No.____________ and Order No.____________.
Waterfront & Commercial Real Estate
7. RESOLUTION NO.____________ - APPROVE FIRST AMENDMENT TO PERMIT NO. 634 WITH SHELL OIL COMPANY
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the First Amendment to Permit No. 634 with Shell Oil Company (Shell). The proposed First Amendment adds a provision that adjusts fixed land rent compensation annually based upon the Consumer Price Index (CPI) beginning February 12, 2019. Shell’s current annual fixed land rent is set at $1,589,160. Shell will be financially responsible for all rental payments due under Permit No. 634.
Recommendation: Board resolve to (1) find that the Director of Environmental Management had 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 First Amendment to Permit No. 634 with Shell Oil Company; (3) direct the Board Secretary to transmit the First Amendment to the City Council for approval pursuant to Charter Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment upon Board approval contingent upon approval by City Council; and (5) adopt Resolution No.____________.
Cargo & Industrial Real Estate
8. RESOLUTION NO.____________ - APPROVE ORDER RESETTING COMPENSATION AND NAME CHANGE UNDER PERMIT NO. 887 WITH H.J. BAKER & BRO., LLC
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the Order resetting compensation under Permit No. 887 (P887) with H.J. Baker & Bro., LLC (HJ Baker) for the five-year period of May 3, 2018 through May 2, 2023 for a sulphur processing facility located in Wilmington. In addition, staff requests approval of the name change from H.J. Baker & Bro., Inc. to H.J. Baker & Bro., LLC as a result of HJ Baker filing a Certificate of Conversion with the state of Delaware. Under the compensation reset Order, the monthly rent will be adjusted from $30,251.86 to $35,057.21 per month effective May 3, 2018, and to $39,425.71 per month effective May 3, 2019, including Consumer Price Index (CPI) adjustments on July 1st of every year during the five-year compensation period. These are increases of 15.8 and 12.4 percent, respectively. HJ Baker is financially responsible for all payments due under P887.
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(14) of the Los Angeles City CEQA Guidelines; (2) approve the Order resetting compensation under Permit No. 887 with H.J. Baker & Bro., LLC; (3) approve the name change from H.J. Baker & Bro., Inc. to H.J. Baker & Bro., LLC; (4) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 887; and (5) adopt Resolution No. ____________ and Order No.____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Sixth Amendment to Permit No. 888 (Permit) between the City of Los Angeles Harbor Department (Harbor Department) and Everport Terminal Services, Inc. (Everport). The proposed Sixth Amendment will extend the term of Permit by ten years; revise notice requirement for a successor permit to 37th year; modify Section 2(b) of the Permit to capture additional acreage into the Permit; charge fixed rent in the amount of $186,049.48 on 24.78 acres from the effective date of the Sixth Amendment until the Notice to Proceed is issued; charge zero rent on the 24.78 acres from issuance of Notice to Proceed until substantial completion after which the 24.78 acres will become part of the compensation acres; provide free rent on one and a half acre parcel for one year; and add a new subsection to Section 5 (Improvements), detailing new improvements to be constructed by the Harbor Department. The option to extend will result in total revenue of approximately $888 million over the ten-year period from 2029 through 2038, with a Net Present Value (NPV) of $397.5 million, and estimated volume of 18.8 million TEUs. Everport is financially responsible for all payments due under the Permit. The Board of Harbor Commissioners previously approved Resolution No. 17-8180 on October 17, 2017, certifying the Environmental Impact Statement/Environmental Impact Report (EIS/EIR) to commence the proposed upgrade at the Everport Terminal. A new Section, “Environmental Compliance†will be added to the Permit to incorporate the mitigation measures. The Sixth Amendment will also cancel and replace the Fifth Amendment approved by the Board of Harbor Commissioners on August 21, 2014. The Fifth Amendment revised the Twenty-Foot Equivalent Unit (TEU) rate scale and allowed Everport to call at other Port of Los Angeles Terminals to retain container volumes resulting from larger vessels that the Everport terminal could not be accommodated due to water depth limitations. The Sixth Amendment will not only allow Evergreen vessels to call at other Port of Los Angeles terminals due to vessel size (as in the Fifth Amendment), but also due to construction of the Sixth Amendment Improvements. The proposed action would result in increased container volumes at the Port, while minimizing revenue impacts to the Harbor Department.
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 California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(i) of the Los Angeles City CEQA Guidelines; (2) approve the Sixth Amendment and cancel the Fifth Amendment to Permit No. 888 with Everport Terminal Services, Inc.; (3) direct the Board Secretary to transmit the Sixth Amendment for Permit No. 888 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 Sixth Amendment upon Board approval contingent upon approval by City Council; and (5) adopt Resolution No.____________.
L. Closed Session Items
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. Certain Underwriters at Lloyd's, London and Other London Market Insurers, et al., Los Angeles Superior Court Case No. BC588876
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Fast Lane Transportation, Inc. v. City of Los Angeles, et al., Contra Costa Superior Court Case No. CIVMSN14-0300 consolidated with Case Nos. CIVMSN14-0308, CIVMSN14-0309, CIVMSN14-0310, CIVMSN14-0311, CIVMSN14-0312, and CIVMSN14-0313
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. San Pedro Waterfront LLC, Los Angeles Superior Court Case No. 18LBUD00467
4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. San Pedro Waterfront LLC, Los Angeles Superior Court Case No. 18LBUD00591
5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. San Pedro Waterfront LLC, Los Angeles Superior Court Case No. 18LBUD00592
6. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. San Pedro Waterfront LLC, Los Angeles Superior Court Case No. 18LBUD00464
7. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. San Pedro Waterfront LLC, Los Angeles Superior Court Case No. 18LBUD00465
8. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. San Pedro Waterfront LLC, Los Angeles Superior Court Case No. 18LBUD00466
9. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. Dave James dba Blue Water Diving Co., Los Angeles Superior Court Case No. 18LBUD00589
10. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. Gary Owen dba McCloud Ringworks, Los Angeles Superior Court Case No. 18LBUD00590
11. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. Sam Cho; Sung Cho, Los Angeles Superior Court Case No. 18LBUD00468
M. Adjournment