Regular Agenda - September 15, 2016
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REGULAR MEETING AGENDA
THURSDAY, SEPTEMBER 15, 2016 AT 8:30 A.M.
Board of Harbor Commissioners
President, Ambassador Vilma S. Martinez
Vice President David Arian
Commissioner Patricia Castellanos
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
E. Reports of the Commissioners
F. Board Committee Reports
Audit Committee Meeting of 8.18.16 (Follow-up)
G. Approval of the Minutes
Special Meeting of September 1, 2016
H. Presentation
I. Level I Coastal Development Permit Report
The Executive Director has approved one Level I CDP:
CDP No. 16-16 City of Los Angeles Department of Water and Power - Removing approximately 66 feet of 12-inch and 6-inch fuel pipelines under the deck and removing the free-standing structures adjacent to the pipeline header system at Berths 180 and 181.
J. Board Reports of the Executive Director
Consent Items (1-5)
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.____________.
Accounting
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the Board of Harbor Commissioners' approval to enter into an agreement with Citibank, North America (Citibank) to provide Travel Payment System (TPS) services to the City of Los Angeles Harbor Department (Harbor Department). This agreement will replace the Harbor Department’s current American Express Corporate/Government Charge Card (American Express) program for charge cards utilized by staff towards business and travel services in accordance with existing Harbor Department travel policies and procedures.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f), of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) find that in accordance with the Los Angeles City Charter Section 1022, the services required can be performed more feasibly by an outside contractor than by City employees; (3) approve the proposed agreement between the Harbor Department and Citibank, North America; (4) award the three-year agreement to Citibank, North America; (5) authorize the Executive Director to execute and the Board Secretary to attest to the agreement; and (6) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests approval of the Fifth Amendment and the Order resetting compensation under Permit No. 560 with the Vopak Terminal Los Angeles, Inc. (Vopak). The proposed reset is for the period of August 30, 2013 to August 29, 2018. The annual compensation will remain at its current rate of $3,215,064 from August 30, 2013 through December 31, 2015, then, increase to $3,692,843.20 starting January 1, 2016. This compensation amount is based on the City of Los Angeles Harbor Department (Harbor Department) receiving a 10 percent annual rate of return on the market value of waterfront land at $29 per square foot (s.f.), and on the market value of backland at $20 per s.f. All subsurface pipeline rights of way remain discounted by 75 percent. The proposed Fifth Amendment also includes a provision that adjusts compensation rates annually based upon the Consumer Price Index (CPI) up to a maximum of three percent beginning on August 30, 2016.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) find that it is in the best interest of the City of Los Angeles Harbor Department to deviate from the Leasing Policy on the subsurface rate; (3) approve the Fifth Amendment to Permit No. 560 with the Vopak Terminal Los Angeles, Inc.; (4) find that the City of Los Angeles Harbor Department and the Tenant have agreed on compensation to be paid by Tenant during the five-year period commencing August 30, 2013 and ending August 29, 2018; (5) approve the Order resetting compensation to Permit No. 560 with Vopak Terminal Los Angeles, Inc.; (6) direct the Board Secretary to transmit the Fifth Amendment to Permit 560 to the City Council for approval pursuant to Charter Section 606 of the City Charter; (7) authorize the Executive Director to execute and the Board Secretary to attest to the Fifth Amendment upon Board approval contingent upon approval by City Council; (8) authorize the Board Secretary to attest to the Order resetting compensation to be paid by Vopak Terminal Los Angeles, Inc. pursuant to the Permit No. 560; (9) adopt Order No.____________; and (10) adopt Resolution No.____________.
Cargo Marketing
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests the approval of the Foreign-Trade Zone (FTZ) first amendment of Operating Agreement No. 11-3000 between the City of Los Angeles Harbor Department (Harbor Department) and CEVA Freight LLC (CEVA). CEVA is located within Magnet Site 4 at 18120 Bishop Street, Carson, California 91746. Site 4D is a seven-acre property including a warehouse located approximately ten miles north of the Port of Los Angeles. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. This first renewal includes updated Indemnification and Insurance language provisions. All remaining terms and conditions of the Agreement shall remain in full force and effect, except as amended herein.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is 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 proposed First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 11-3000 between the City of Los Angeles Harbor Department and CEVA Freight LLC; (3) direct the Board Secretary to transmit the proposed First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 11-3000 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) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment of Foreign-Trade Zone General Purpose Operating Agreement No. 11-3000; and (5) adopt Resolution No.____________.
Construction and Maintenance
Summary: Staff requests that the Board of Harbor Commissioners approve Contract No. 39788 with Cleveland Track Material, Inc. of Cleveland, OH for the procurement of eight (8) rail track joints in the bridge structure of the Badger Avenue railroad drawbridge. The cost of the eight pieces of equipment is $460,329, including sales tax. The existing seven year old joints are in poor condition and need to be replaced in order to maintain the operational integrity of the Badger Avenue Bridge, a vital rail transportation link serving Terminal Island. Due to the long lead time involved in obtaining the joints, i.e. one year, this acquisition will be included in the upcoming Fiscal Year 2017-18 capital improvement program budget. This contract is the financial responsibility of the Harbor Department.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f), and Article III, Class 1(32), of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve Contract No. 39788 with Cleveland Track Material, Inc. for the purchase of eight (8) rail track joints for the Badger Avenue Bridge in the amount of $460,329 and authorize said expenditures; (3) authorize the Executive Director to execute and Board Secretary to attest to Contract No. 39788 for and on behalf of the Board; and (4) adopt Resolution No.____________.
Regular Items (6 - 9)
Construction
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve the award of this construction contract to Kiewit Infrastructure West Company (Kiewit). The Sampson Way Roadway Improvements - 7th Street and Harbor Boulevard Intersection (Project) will construct a reconfigured intersection at the junction of Harbor Boulevard, Sampson Way and 7th Street, to improve vehicular access to accommodate existing traffic and future growth for the San Pedro Waterfront. The lowest responsive and responsible bidder is Kiewit located in Santa Fe Springs, California. The contract amount, plus a 10% contingency, is $10,093,600. The contract duration is 650 calendar days. This Project is reimbursable up to $4,951,400, under the Los Angeles County Metropolitan Transportation Authority (LACMTA) Proposition C funding, and an additional $3,675,000 is anticipated to be approved for reimbursement. The City of Los Angeles Harbor Department’s (Harbor Department) cost share to the Project is estimated at $1,467,200, upon approval of the additional anticipated funding.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Sections 2(f) and 2(i), of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) find that, in accordance with City Charter Section 1022, work under the subject contract can be performed more feasibly by an independent contractor rather than by City employees; (3) award and approve, Specification No. 2776 for Item Nos. 1 through 42 of the proposal schedule to Kiewit Infrastructure West Company, in the amount of $9,176,000; that a 10% contingency not included in the original contract amount be applied for a total authorization of $10,093,600; and authorize payment from the Harbor Department Construction Account. The contract time for performance of the work will be 650 calendar days from the Notice to Proceed; (4) authorize the Executive Director to execute and the Board Secretary to attest to this contract for and on behalf of the Board; (5) in accordance with City Charter Section 655 (g), delegate and authorize the Executive Director to adjust final bid quantities and accept the construction contract upon its completion; and (6) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
7. RESOLUTION NO.____________ - APPROVE FIRST AMENDMENT TO REVOCABLE PERMIT NO. 11-04 WITH THE LOS ANGELES MARITIME INSTITUTE
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the First Amendment to Revocable Permit No. 11-04 (RP 11-04) with the Los Angeles Maritime Institute (LAMI) to allow for continued operation and expansion of their TopSail Youth Program for middle and high school students, including at-risk youth, in maritime education and hands-on tall-ship sailing. The amendment would increase LAMI's current operations, consisting of 2,565 square feet (s.f.) of office space at Berth 73 and nonexclusive use of 14,420 s.f. of dock/water area at Berth 78. Areas to be added in the amendment include a gangway/dock area; retail space (Unit P-3) at Berth 78; 4,278 s.f. of warehouse space (Building "G"); 13,108 s.f. of outside work/storage area at Berth 73; and 812 s.f. of office/storage space at the Ports O’Call Village (POCV) area (Unit W-21). The amendment requires that LAMI provide the Board of Harbor Commissioners a comprehensive report every six months on its operations to determine if the premises can continue to be provided on a no-charge monthly basis under the permit and proposed amendment.
Recommendation: Board resolve to (1) adopt the Fourth Addendum to the certified San Pedro Waterfront Environmental Impact Report, and after consideration of said Addendum find that, in accordance with the provisions of the California Environmental Quality Act (CEQA) Guidelines Section 15164, the proposed First Amendment will not result in any new significant environmental effects or any substantially more severe effects than previously analyzed in the certified Environmental Impact Report; (2) find that it is in the best interest of the City of Los Angeles Harbor Department to grant a no-rent Revocable Permit to the Los Angeles Maritime Institute in exchange for the community benefits provided by its public TopSail Youth Program; (3) approve the First Amendment to Revocable Permit No. 11-04 with the Los Angeles Maritime Institute; (4) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment of Revocable Permit No. 11-04; and (5) adopt Resolution No.____________.
Cargo Marketing
8. RESOLUTION NO.____________ - APPROVE TEMPORARY AND PERMANENT ORDERS AMENDING PORT OF LOS ANGELES TARIFF NO. 4, SECTION 4 - DOCKAGE, ITEM NO. 410, SECTION 5 - WHARFAGE, ITEM 525, SECTION 6 - PASSENGER FEES, ITEM 600, AND SECTION 23 - INCENTIVES GENERAL RULES AND REGULATIONS, ADDING ITEM 2330, ITEM 2335, AND ITEM 2340
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests approval of amendments to the Port of Los Angeles (Port) Tariff No. 4 (Tariff No. 4) Section 4 - Dockage, Item No. 410; Section 5 - Wharfage, Item No. 525; Section 6 - Passenger Fees, Item No. 600; and Section 23 - Incentives General Rules and Regulations, adding Item Nos. 2330, 2335, and 2340. The proposed amendments to Tariff No. 4 would include: 1) an eight-year rate schedule with an annual three percent rate increase; 2) a bundled passenger rate that includes 24 hour dockage, stores and lay day fees; 3) a minimum fee level of $15,000 for any passenger ship call at the port; 4) an in-transit passenger fee of $10.00 per passenger; 5) a volume and season based cruise vessel incentive program; and 6) an exemption from General Rate Increases (GRI) from the effective date through August 31, 2024. The proposed effective date is September 20, 2016.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Amendment to Port of Los Angeles Tariff No. 4 revising Section 4 - Dockage, Item No. 410; Section 5 - Wharfage, Item No. 525; Section 6 - Passenger Fees, Item No. 600; and Section 23 - Incentives - General Rules and Regulations, adding Item Nos. 2330, 2335, and 2340, subject to the California Association of Port Authorities’ review and approval, and authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities procedure; (3) adopt Temporary Order No. __________ to amend Section 4 - Dockage, Item No. 410; Section 5 - Wharfage, Item 525; Section 6 - Passenger Fees, Item No. 600; and Section 23 - Incentives - General Rules and Regulations, adding Item Nos. 2330, 2335, and 2340, in the Port of Los Angeles Tariff No. 4; (4) adopt Permanent Order No. __________ to amend Section 4 - Dockage, Item No. 410; Section 5 - Wharfage, Item No. 525; Section 6 - Passenger Fees, Item No. 600; and Section 23 - Incentives - General Rules and Regulations, adding Item Nos. 2330, 2335, and 2340, in the Port of Los Angeles Tariff No. 4; (5) authorize the Board Secretary to certify to the adoption of the 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 prior to adoption by Ordinance for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); (6) direct the Board Secretary to transmit to the City Council for approval of the Permanent Order and the Ordinance approving and authorizing the amendments to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); (7) authorize the Board Secretary to execute the Temporary Order, Permanent Order and Ordinance amending Tariff No. 4 as stated above, and upon its publication, transmit the Orders and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website; and (8) adopt Resolution No.____________.
Environmental Management
9. RESOLUTION NO.____________ - APPROVING TEMPORARY AND PERMANENT ORDERS AMENDING PORT OF LOS ANGELES TARIFF NO. 4, SECTION 20, ITEM NO. 2060 - CLEAN AIR ACTION PLAN GENERAL RULES AND REGULATIONS - ENVIRONMENTAL SHIP INDEX
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve an amendment to the existing Port of Los Angeles (Port) Tariff No. 4, Section 20, Item No. 2060 to modify the Los Angeles Harbor Department’s (Harbor Department) Voluntary Environmental Ship Index (ESI) Incentive Program rules to align with recently introduced international formula scoring changes and adjust payouts to focus on ships with the cleanest scores. The proposed modifications to the voluntary ESI Incentive Program will take effect on October 1, 2016. The ESI Incentive Program is an ocean-going vessel (OGV) scoring system developed by the International Association of Ports and Harbors, World Ports Climate Initiative (WPCI) to reward ships that emit fewer air emissions than are required by regulation. The WPCI periodically modifies the ESI scoring system when new regulations take effect. In October 2015, the average ESI OGV scoring system changed, primarily due to the International Maritime Organization (IMO) adoption of a North America Emissions Control Area (ECA) requiring vessels to use fuel not exceeding 0.1 percent sulfur content. Modification of the Harbor Department’s ESI structure will address this scoring so that the cleanest ships that call the Port receive the incentive.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f), of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Amendment to Port of Los Angeles Tariff No. 4 revising Section Twenty Clean Air Action Plan - General Rules and Regulations, Item 2060 - Voluntary Environmental Ship Index (ESI) Incentive Program, subject to the California Association of Port Authorities review and approval, and authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities procedure; (3) adopt Temporary Order No.____________ amending Section Twenty, Clean Air Action Plan - General Rules and Regulations, modifying the Voluntary Environmental Ship Index Incentive Program and sunset IMO - Tier II Standards from the Port of Los Angeles Tariff No. 4; (4) adopt Permanent Order No.____________ amending Section Twenty, Clean Air Action Plan - General Rules and Regulations, modifying the Voluntary Environmental Ship Index Incentive Program and sunset IMO - Tier II Standards from the Port of Los Angeles Tariff No. 4; (5) authorize the Board Secretary to certify to the adoption of the 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 prior to adoption by Ordinance for a period not to exceed 90 days pursuant to Charter Section 653(b); (6) direct the Board Secretary to transmit to the City Council for approval of the Permanent Order and the Ordinance approving and authorizing an amendment to Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); (7) authorize the Board Secretary to execute the Temporary Order, Permanent Order and Ordinance amending Tariff No. 4 as stated above, and upon its publication, transmit the Orders and Ordinance to the Chief Wharfinger for implementation and posting to the Port of Los Angeles website; and (8) adopt Resolution No.____________.
CLOSED SESSION
K. Closed Session Items
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to the Permit 692 with Yusen Terminals Inc.:
Property: Berths 211-215, Terminal Island, California
City Negotiator: Jack Hedge
Tenant Negotiator: Alan McCorkle
Negotiating Parties: City and Yusen Terminals Inc.
Under Negotiation: Price and Terms
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to disposal of surplus property by public auction:
Property: I-110 Harbor Freeway and John S. Gibson Boulevard as surplus property (portions of Assessor Parcel Numbers 7400-016-911, 7440-016-907, and 7412-024-902
City Negotiators: Jack Hedge, Paul Andre, Surplus Property
Under Negotiation: Price and Terms
3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (b) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (b) of
Section 54956.9 (two cases).
4. 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:
two cases.
L. Adjournment
BOARD MEETINGS
The Board's Regular Meetings are the first and third Thursday of each month at 8:30 A.M. at the Harbor Administration Building Boardroom or as scheduled on the Port's website at www.portoflosanageles.org. A quorum of three of five Commissioners is required to transact business and three Aye votes are required to carry a motion. Commission actions, except actions which are subject to appeal or review by the Council pursuant to other provisions of the Charter, ordinance or other applicable law, are not final until the expiration of the next five meeting days of the City Council during which the Council has convened in regular session. If the Council asserts jurisdiction during this five meeting day period the Council has 21 calendar days thereafter in which to act on the matter.
Please note that this agenda is subject to revision in accordance with the Brown Act. In the event the agenda is revised prior to the meeting, Port staff will post the revised agenda on the Port's web site (http://www.portoflosangeles.org). Updated agendas will also be available at the meeting. Live Board meetings can also be heard at: (213) 621-2489 (Metro), (818) 904-9450 (Valley), (310) 471-2489 (Westside) and (310) 547-2489 (Harbor). As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities. Sign language interpreters, assistive listening devices, and translation services may be provided. To ensure availability, 72-hour advance notice is required. Contact the Commission Office at (310) 732-3444.
Interpretes de señas, sistemas auditivos y servicios de traducciones están disponibles. Para asegurar disponibilidad, se requiere solicitarlos con 72 horas de anticipación. Para hacer la solicitud, llame a la oficina de la Comisión al (310) 732-3444.
OPPORTUNITIES FOR THE PUBLIC TO ADDRESS THE BOARD
Before reaching those portions of the agenda where Board action is requested, members of the public will be given an opportunity to address the Board on items of interest within the subject matter jurisdiction of the Board (general public comment). Thereafter, members of the public will be given an opportunity to address the Board on any item on the consent or regular agendas prior to or during the Board's consideration of that item. The same opportunity will be given in open session regarding the closed session agenda prior to commencement of closed session. Members of the public who wish to speak during general public comment are to complete a speaker card so indicating. Members of the public who wish to speak regarding a particular agenda item(s) are to complete a speaker card(s) for each such item. Agendas for special meetings will permit the public to address particular agenda items even where the agenda does not include general public comment. Each speaker is allowed to speak up to 3 minutes per agenda item. The Presiding Officer shall, however, exercise discretion to determine whether such period of time should be reduced or extended based upon such factors as the length of the agenda or substance of the agenda items, the number of public comment speaker cards submitted, the need for the Board to conclude its business as expeditiously as is practicable, and whether the Board is at risk of losing a quorum, among other factors.
If you wish to provide documents to the full Commission, please present the Board Secretary with twelve (12) copies. Otherwise, your materials will simply be added to the official record.