Los Angeles Board of Harbor Commissioners 
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731

A. OPENING STATEMENT – AN OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO ADDRESS THIS BOARD

PERSONS IN THE AUDIENCE MAY ADDRESS THIS BOARD IN CONNECTION WITH ANY AGENDA ITEM OR DURING THE PUBLIC COMMENT PERIOD.

AS PROVIDED BY THE BROWN ACT, THE BOARD HAS LIMITED EACH INDIVIDUAL’S SPEAKING TIME TO THREE MINUTES. ANYONE DESIRING TO SPEAK DURING THE PUBLIC COMMENT PERIOD IS REQUESTED TO COMPLETE A SPEAKER CARD AND SUBMIT IT TO THE COMMISSION SECRETARY, VIA THE SERGEANT AT ARMS, PRIOR TO THE START OF THE MEETING.

B. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS

C. EXECUTIVE DIRECTOR REMARKS

D. REPORTS OF THE COMMISSIONERS

E. BOARD COMMITTEE REPORTS
    Port Efficiency Committee, VP David Arian

F. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
  1. Re: RESOLUTION NO. ____________- APPROVAL OF FIRST AMENDMENT FOR FOREIGN-TRADE ZONE OPERATING AGREEMENT NO. 08-2729 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND HOWARD HARTRY INC., SITE 1C

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SUMMARY: In May 2009, the City of Los Angeles Harbor Department (Harbor Department) entered into Foreign-Trade Zone (FTZ) Operating Agreement No. 08-2729 (Agreement No. 08-2729) with Howard Hartry Inc. (Howard Hartry) to operate FTZ 202, Site 1C in Wilmington, California. The term of the agreementis five years with three, five-year renewal options. Agreement No. 08-2729 commenced on May 1, 2009 and is set to expire on April 30, 2014. This site was approved by the FTZ Board in May 2004 by FTZ Board Order 1331 as a part of FTZ 202 expansion application under Site 1.
FTZ 202 has grown rapidly and as a result site numbers are not organized consistently. In order to solve this issue, the FTZ board began organizing and renumbering sites for consistency. In November 2010, the FTZ Board renumbered Site 1C to Site 27. Any change made to an original operating agreement between the Harbor Department and operator requires an amendment to the agreement. The Harbor Department is also required by U.S. Customs and Border Protection (CBP) to mend Agreement No. 08-2729 to change the site number. The proposed First Amendment (Amendment) will approve the site number change. Except as amended, all remaining terms and conditions of Agreement No. 08-2729 shall remain in full force and effect. There is no cost to the Harbor Department if approved. Recommendation: Board resolve to (1) approve the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 08-2729 between the City of Los Angeles Harbor department and Howard Hartry Inc.; (2) direct the Board Secretary to transmit the proposed First Amendment 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; (3) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the proposed First Amendment to Foreign-Trade Zone Operating Agreement No. 08-2729; and (4) adopt Resolution No.
____________.

2. Re: RESOLUTION NO. ____________ - APPROVAL OF FOREIGNTRADE ZONE DEVELOPER AGREEMENT BETWEEN ThE CITY OF LOS ANGELES HARBOR DEPARTMENT AND THE REALTY ASSOCIATES FUND IX, L.P., SITE 20

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SUMMARY: In May 2004, the Foreign-Trade Zone (FTZ) Board designated undeveloped land located in Eastvale, formally known as Mira Loma, California, owned by Industrial Development International, Inc. (IDI), as FTZ 202, Site 20. This site had been reorganized and downsized several times due to change of land use. Currently, Site 20 is approximately 141 acres. recently, IDI sold 18.95 acres of this site to The Realty Associates Fund IX, L.P. (T.A. Realty). The City of Los Angeles Harbor Department (Harbor Department), as the grantee, is required by the FTZ Board to have a developer agreement with a new and
owner. In August 2011, the Harbor Department received a request from T.A. Realty to enter into a FTZ Developer Agreement (Agreement) for the 18.95 acres purchased from IDI. The proposed Agreement is for a five-year term with three five-year renewal options. Recommendation: Board resolve to (1) approve the proposed Agreement between the City of Los Angeles Harbor Department and The Realty Associates Fund IX, L.P.; (2) direct the Board Secretary to transmit the proposed 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; (3) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the proposed Agreement; and (4) adopt Resolution No. ____________.

3. Re: RESOLUTION NO. ____________ - APPROVAL OF FOREIGN TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND CUSTOM AIR WAREHOUSE, FTZ 202, SITE 10E

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SUMMARY: The City of Los Angeles Harbor Department (Harbor Department), as the Foreign-Trade Zone (FTZ) grantee, establishes General Purpose operating Agreements with FTZ operators to oversee their FTZ operations. The Harbor Department received a request from Custom Air Warehouse (Custom Air) to activate its site within FTZ 202, Site 10E, located at 1130 East 230th Street, Carson, California, 90745. Site 10E is a building within 325.5 acres of FTZ 202, Site 10. This site is approximately 10 miles north of the Port of Los Angeles (Port). Custom Air will be operating its warehouses under FTZ procedures. The proposed FTZ Operating Agreement (Agreement) will provide a term of five years with three, five-year renewal options. Recommendation: Board resolve to (1) approve the proposed Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and Custom Air Warehouse; (2) direct the Board Secretary to transmit the 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; (3) upon approval by the City Council, authorize the Executive Director to execute and the Board Secretary to attest to the Foreign-Trade Zone Operating Agreement;
and (4) adopt Resolution No. ____________.
  4. Re: RESOLUTION NO. ____________ - PROPOSED FIRST AMENDMENT TO AGREEMENT NO. E6588 WITH FUTURESENSE, INC., FOR EMPLOYEE COMMUNICATION SURVEY SERVICES

SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) conducts periodic employee engagement surveys. On June 9, 2011, the Executive Director executed Agreement No. E6588 (Agreement) between the Harbor Department and FutureSense, Inc. (FutureSense), located in San Ramon, California. Under this Agreement, FutureSense would be responsible for the preparation, administration, and results analysis of an employee engagement survey. FutureSense administered a subsequent Internal Communication & Cultural DNA Survey in August 2011 to all Harbor Department employees, as well as in-house City Attorney staff. Since then, FutureSense has been working with staff at the bureau and division levels to develop action plans aimed at improving internal communications (within and across divisions) and providing more opportunities for cross-divisional and staff-management interaction. Additional time is necessary for FutureSense to complete some of the tasks originated as part of the Year 1 scope of work. Also, a follow-up survey is required to benchmark Harbor Department employee engagement levels and to track the effectiveness of initiatives implemented based on initial survey results. To this end, it is proposed to extend Agreement No. E6588 two years, making the new expiration date June 9, 2014, and increase the amount by $72,875. Since the proposed Amendment would extend the term of the Agreement
beyond one year and increase the compensation in excess of $150,000, Board of Harbor Commissioners (Board) approval is required. The Communications Group recommends the approval of the First Amendment to Agreement E6588 in the amount of $72,875 for the continuation of services, the implementation of a follow-up survey and related activities, and extending the time of the Agreement two years. The new resulting agreement will be for a total of three years at an amount not to exceed $222,875.
Recommendation: Board resolve to (1) 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; (2) approve the two-year Amendment for Agreement No. E6588 with FutureSense, Inc., in the amount of $72,875 for a not-to-exceed amount of $222,875 for three years; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Amendment for Agreement No. E6588 with FutureSense, Inc.; and (4) adopt Resolution No. ____________.
  5. Re: RESOLUTION NO. ____________ - APPROVAL OF TWO, ONEYEAR RENEWAL OPTIONS FOR AGREEMENT NO. E6597 WITH POSTHOLE DIGGER, INC. FOR RAIL YARD MAINTENANCE AT PIER 300

Transmittal 1

SUMMARY: The Construction and Maintenance Division (C&M) is responsible for the maintenance, inspection and repair of the rail yard at Pier 300. Agreement No. E6597 between the City of Los Angeles Harbor Department (Harbor Department) and Posthole Digger, Inc. of Medina, WA was established in July 2011 for a one-year period in the amount of $80,000 to perform these specialized rail yard services. C&M requests the approval of two, one-year renewals for an amount not-to-exceed 81,580 for the first renewal period and $83,743 for the second renewal period. The total expenditure amount for all three years of this agreement will not exceed $245,323. Recommendation: Board resolve to (1) 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; (2) approve two, one-year renewal options for Agreement No. E6597 with Posthole Digger, Inc. in the amount of $81,580 for the first renewal period and $83,743 for the second renewal period for a not-to-exceed three-year maximum of $245,323; (3) authorize the Executive Director to execute the renewal options for Agreement No. E6597 with Posthole Digger, Inc.; and (4) adopt Resolution No. ____________.

6. Re: RESOLUTION NO. ____________ - AWARD OF PURCHASE ORDER NOS. 201231376, 201231387, 201231391, 201231392, 201231802, AND 201231842 TO DOWNTOWN FORD SALES FOR THE PURCHASE OF 12 VEHICLES; AWARD OF PURCHASE ORDER NOS. 201231720, 201231721, 201231722, AND 201231723 TO SOUTH BAY FORD FOR THE PURCHASE OF FOUR TRUCKS

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SUMMARY: The Construction and Maintenance Division (C&M) requests approval of: six Purchase Orders with Downtown Ford Sales of Sacramento, CA for the purchase of 12 vehicles in the amount of $418,332, including sales tax, and four purchase Orders with South Bay Ford of Hawthorne, CA for the purchase of four Compressed Natural Gas (CNG) fueled trucks in the amount of $230,137, including sales tax. The total amount for all 16 vehicles is $648,467. Fifteen of these vehicles will provide carbon efficient replacements for the oldest and least efficient of the current pool and staff vehicles. One new
CNG fueled truck will support maintenance of the new Wilmington Waterfront Park. All 16 vehicles are funded in the Fiscal Year 2011-12 capital equipment budget. Recommendation: Board resolve to (1) approve Purchase Order Nos. 201231376, 201231387, 201231391, 201231392, 201231802, and 201231842 with Downtown Ford Sales in the amount of $418,332 and authorize said expenditures; (2) approve Purchase Order Nos. 201231720, 201231721, 201231722, and 201231723 with South Bay Ford in the amount of $230,137 and authorize said expenditures; and (3) adopt Resolution No. ____________.

7. Re: RESOLUTION NO. ____________ - CHINA SHIPPING PORT AESTHETIC MITIGATION PROJECT – AGREEMENT WITH KENNEDY COMMUNICATIONS AND ADOPT A STORM DRAIN FOUNDATION FOR ELEMENTARY STORM WATER AND EDUCATION PROGRAM

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SUMMARY: In July 2009, the Los Angeles Board of Harbor Commissioners (Board) approved and allocated China Shipping Community Aesthetic Mitigation funding to Kennedy Communications (Rancho Cucamonga, CA) in collaboration with the Adopt a Storm Drain Foundation (Torrance, CA) for an Elementary Storm Water Management Education Program (Project). The Project will benefit the Wilmington community by providing classroom education and coordinated community cleanups. Staff recommends that the Board approve the three-party agreement among the City of Los Angeles Harbor Department (Harbor Department), Kennedy Communications, and Adopt a Storm Drain Foundation (Agreement) in order to fund the Project for a not-to-exceed amount of $75,000 total for a term of two years. Recommendation: Board resolve to (1) approve the two-year Agreement with the Kennedy Communications and Adopt a Storm Drain Foundation in the notto-exceed amount of $75,000 for the Elementary Storm Water and Management Education Program; (2) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement for and on behalf of the Board; and (3) adopt Resolution No. ___________.

8. Re: RESOLUTION NO. ____________ - SECOND AMENDMENT TO CALIFORINA AIR RESOURCES BOARD ADVANCED TECHNOLOGY DEMONSTRATION AGREEMENT NO. 10-2920 FOR THE DIESEL PARTICULATE FILTER SWITCHER LOCOMOTIVE DEMONSTRATION PROJECT AND AGREEMENT NO. 10-2919 WITH JOHNSON MATTHEY, INC.

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SUMMARY: On November 18, 2010, the City of Los Angeles Harbor Department (Harbor Department) entered into Agreement No. 10-2920 (Project Grant Agreement) with the California Air Resources Board (CARB) to partially fund the demonstration of a Tier IV Diesel Particulate Matter (DPM) Retrofit System on a Tier III Genset Switcher Locomotive (Project) to be operated by Union Pacific Railroad (Union Pacific). The Harbor Department also entered into Agreement No. 10-2919 (Subrecipient greement) with Johnson Matthey, Inc. (Johnson Matthey), located in Malvern, Pennsylvania, to fulfill the technical aspects of the Project’s scope of work. Due to delays in durability and emissions testing, a Second Amendment to the Project Grant Agreement and the Subrecipient Agreement is necessary to allow completion of the Project. The scope of work and the total grant amount remain the same. Staff is recommending the Board of Harbor Commissioners (Board) approve the Second Amendment to the Project Grant Agreement and the Second Amendment to the Subrecipient Agreement extending the original one-year terms by an additional year. Recommendation: Board resolve to (1) approve the Second Amendment to Agreement No. 10-2920 between the Harbor Department and the California Air Resources Board extending the contract term to June 30, 2013; (2) approve the Second Amendment to Agreement No. 10-2919 between the Harbor Department and Johnson Matthey, Inc. extending the contract term to June 30, 2013; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Amendments for and on behalf of the Board; and (4) adopt Resolution No.____________. 

9. Re: RESOLUTION NO. ____________ - COOPERATIVE AGREEMENT NO. DE-83467301-1 ASSISTANCE AMENDMENT WITH THE U.S. ENVIRONMENTAL PROTECTION AGENCY

Transmittal 1

SUMMARY: On July 22, 2010, the Board of Harbor Commissioners (Board) approved a Cooperative Agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and U.S. Environmental Protection Agency (EPA) under the EPA’s Emerging Technologies Program to fund the “The Port of Los Angeles/EcoPower EcoCrane Emerging Technologies Project” (Project). The Project is the repowering of a Ports America rubber tired gantry (RTG) crane at the West Basin Container Terminal (WBCT) with a hybrid system called “EcoCrane.” The Project is expected to be completed by July 1, 2012. The outstanding Project tasks, as required by the contract, are the submission of the emissions data report to the EPA and the destruction of the old engine. The Agreement with the EPA was due to expire on April 30, 2012; however, in order to complete the remaining tasks, the EPA amended the Agreement to extend it to August 31, 2012. It is requested that the Board approve the Agreement that was amended by the EPA (Amendment). Recommendation: Board resolve to (1) approve the Cooperative Agreement Amendment between the U.S. Environmental Protection Agency and the City of Los Angeles Harbor Department to extend the term by four months, thereby changing the expiration date from April 20, 2012 to August 31, 2012; (2) authorize the Executive Director to execute and the Board Secretary to attest to said Amendment for and on behalf of the Board; and (3) adopt Resolution No. ____________.
  10. Re: RESOLUTION NO. ____________ - FIRST AMENDMENT TO AGREEMENT NO. E6592 BETWEEN THE CITY OF  LOS ANGELES HARBOR DEPARTMENT AND FIRST CALL TEMPORARY SERVICES, INC. FOR COMPUTER OPERATOR SERVICES

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SUMMARY: The Information Technology (IT) Division is requesting approval of the First Amendment to Agreement No. E6592 with First Call Temporary Services, Inc. (First Call), located in Torrance, California, to provide computer operator services for the computer system at the City of Los Angeles Harbor Department (Harbor Department). These services are needed to augment staffing during the extended leave of the Harbor Department’s night-shift Senior Computer Operator. On June 14, 2011, Agreement No. E6592 was approved as a one-year Executive Director Agreement in the amount of $24,000. Because of a recent extended employee leave, the proposed First Amendment is needed to extend the term of the Agreement for an additional two years until June 13, 2014. The proposed First Amendment would also increase the total Agreement amount by $120,000, for a new total not-to-exceed $144,000. The selection of First Call was based on a competitive Request for  proposals (RFP) process performed by the Harbor Department in March 2011. Recommendation: Board resolve to (1) find that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; (2) approve the First Amendment to Agreement No. E6592 with First Call Temporary Services, Inc. for computer operator services to increase the total Agreement amount by $120,000 from $24,000 to $144,000 and extend the Agreement term an additional two years for a total term of three years; (3) authorize the Executive Director to execute and the Board Secretary to attest to the proposed First Amendment; and (4) adopt Resolution No. ____________.
  11. Re: RESOLUTION NO. ____________ - APPROVAL OF AGREEMENTS WITH AS-NEEDED WRITING PROFESSIONALS

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SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is proposing to enter into agreements with writing professionals to provide as needed services in support of the Harbor Department’s shipping industry, business development, environmental, tourism and public outreach programs. Selected through a competitive Request for Proposals (RFP) process, the writing professionals would provide the following as-needed writing and editing services: video production and scripting; print and broadcast advertising and collateral materials (produced in-house); talking points, presentations and speeches for public events; and news releases and articles for the Harbor Department’s web properties and news bureau. Staff is recommending the Board of Harbor Commissioners (Board) approve four agreements for a term of one year with two one-year renewal options. The total sum of the four proposed agreements shall not exceed $200,000 per year or $600,000 for three years. Recommendation: Board resolve to (1) 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; (2) approve the four agreements for one year with two, one-year renewal options for a total sum not-to-exceed $200,000 per year; (3) authorize the Executive Director to execute and the Board Secretary to attest to the agreements; and (4) adopt Resolution No.____________.
 
12. Re: RESOLUTION NO. ____________ - ISSUANCE OF A LEVEL I COASTAL DEVELOPMENT PERMIT (NO. 12-05) TO PIONEER GREEN ENERGY, LLC FOR THE INSTALLATION OF A WIND MONITORNING DEVICE AT THE SOUTHERN END OF PIER 400

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SUMMARY: Pioneer Green Energy, LLC (Pioneer) seeks to temporarily install a wind monitoring device that will be placed on a six foot by nine foot concrete pad on top of the rip rap at the southern end of Pier 400 for the purpose of assessing the wind energy potential near the federal breakwater. The instrument is solar-powered and operates autonomously. It uses remote
sensing technology to collect the data. The instrument would be in place for two years after which it would be removed. Staff is recommending that the Board of Harbor Commissioners (Board) approve Coastal Development Permit (CDP) No. 12-05, a Level I, non-appealable permit for the proposed project. Recommendation: Board resolve to (1) find that the proposed project conforms with the Port Master Plan and the California Coastal Act of 1976, as amended, and find that this project will have no significant adverse environmental impacts as provided in the California Environmental Quality Act; (2) authorize the Executive Director to approve the issuance of Coastal Development Permit No. 12-05 consistent with the project description listed on Application for Discretionary Project No. 110801-097 and with Special Condition No. 1 requiring Pioneer Green Energy, LLC to provide seven (7) days advance written notice of the initiation of the construction or maintenance work to the Harbor Department and Pacific L.A. Marine Terminal LLC should Pacific L.A. Marine Terminal LLC be granted an entitlement for use of the property in the vicinity of the proposed Pioneer wind monitoring device, and Special Condition No. 2 requiring Pioneer Green Energy, LLC to cease operations if the Harbor Department’s least tern nesting site monitoring consultant determines there is a negative impact to the least terns; and (3) adopt Resolution No. ____________.

13. Re: RESOLUTION NO. ____________ - CONTINUATION OF PUBLIC HEARING FOR DRAFT PORT MASTER PLAN AMENDMENT NO. 27 – AL LARSON BOAT SHOP TO JUNE 21, 2012

SUMMARY: On May 3, 2012, the Board of Harbor Commissioners (Board) approved the release of Port Master Plan Amendment No. 27 – Al Larson Boat Shop (Draft Amendment). This action included the publishing of the Notice of Completion and scheduling a public hearing on the Draft Amendment during the June 7, 2012 Board meeting. Staff recommends this  hearing be continued to June 21, 2012 to remain consistent with the 30-day public notice requirement of the California Coastal Act. The Notice of Completion was published on May 18, 2012. Recommendation: Board resolve to (1) continue the public hearing for Draft Port Master Plan Amendment No. 27, originally scheduled for June 7, 2012, to the regularly scheduled Board of Harbor Commissioners meeting on June 21, 2012, at 8:30 a.m. at the Harbor Administration Building, 425 S. Palos Verdes
Street, San Pedro, California 90731; and (2) adopt Resolution No.____________.

14. Re: RESOLUTION NO. __________ - APPROVE SUBLEASE BY PORTS O’ CALL RESTAURANT CORPORATION TO JSTINIM, INC. OF A PORTION OF THE PREMISES HELD UNDER LEASE NO. 305-3

Transmittal 1

SUMMARY: Lease Nos. 305-2 and 305-3 grant Ports O’ Call Restaurant Corporation (POCRC) use of City of Los Angeles Harbor Department (Harbor Department) property for a period of 40.5 years (commencing on July 1, 1974 and ending on December 31, 2014) for the operation of a mixed-use retail/restaurant complex, which encompasses the following  establishments: Acapulco Restaurant, Fisherman’s Seafood Restaurant, San Pedro Marina, the Asian Village, and Crusty Crab Fish Market and Restaurant. Staff requests approval of the sublease between POCRC and JSTINIM, Inc. for an upscale  restaurant establishment serving “American-style” seafood cuisine. The sublease is for a portion of the premises held under POCRC’s Lease No. 305-3, formerly sublet to Simon’s Waterfront Restaurant (Simon’s) which ceased operations in October 2011. The sublease is co-terminus with the expiration of Lease Nos. 305-2 and 305-3 on December 31, 2014. Recommendation: Board resolve to (1) approve the proposed sublease by Ports O’ Call Restaurant Corporation to JSTINIM, Inc.; (2) authorize the Executive Director to execute and the Board Secretary to attest to the proposed sublease; and (3) adopt Resolution No. ____________.

15. Re: RESOLUTION NO. ____________ - APPROVE FOURTH AMENDMENT TO REVOCABLE PERMIT NO. 1464 WITH EXXONMOBIL OIL CORPORATION AND SUCCESSOR REVOCABLE PERMIT NO. 10-11 WITH GENERAL PETROLEUM CORPORATION FOR THE BERTH 259 MARINE FUELING FACILITY

Transmittal 1

SUMMARY: Revocable Permit (RP) No. 1464 between the City of Los Angeles Harbor Department (Harbor Department) and Mobil Oil Corporation (currently known as ExxonMobil Oil Corporation - EMOC) grants use of property located at Berth 259 in Fish Harbor on Terminal Island for marine fueling station operations and maintenance of a pipeline right-of-way. EMOC and its
predecessors have occupied the Berth 259 marine fueling station site since 1913, with General Petroleum Corporation (GP) operating the station since 1933. EMOC will cease operations of the marine fueling station and has requested an amendment to the RP so that only Parcel No. 2 of its leasehold premises is retained, as highlighted on Harbor Engineering Drawing No. 5-4472-1. GP is requesting a new RP, No. 10-11, to continue operation of the marine fueling station on Parcel Nos. 1, 3, and 4 and at an adjacent maintenance yard, as a successor to the current RP 95-46. RECOMMENDATION: Board resolve to (1) approve the Fourth Amendment to Revocable Permit No. 1464 with ExxonMobil Oil Corporation; (2) approve successor Revocable Permit No 10-11 with General Petroleum Corporation; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Fourth Amendment to Revocable Permit No.1464 with ExxonMobil Oil Corporation and successor Revocable Permit No. 10-11 with General Petroleum Corporation; and (4) adopt Resolution No. ____________.
  16. Re: RESOLUTION NO. ____________ - PROPOSED FIRST AMENDMENT TO AGREEMENT NO. E6611 BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND JAMES K. WALLACE, FOR LIVEABOARD VESSEL INSPECTION SERVICES

Transmittal 1
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SUMMARY: The Port of Los Angeles, Tariff No. 4, Section 22, Item 2230, mandates that all liveaboard vessels must be inspected annually for compliance with all applicable United States Coast Guard (USCG), State, Federal, and local regulations. Inspections may only be performed by Port of Los Angeles authorized inspectors. James K. Wallace located in San Pedro, California was authorized by the City of Los Angeles Harbor Department (Harbor Department) to inspect and assess approximately 300 liveaboard vessels at 17 marinas to ensure that these vessels are in compliance with all applicable USCG, Federal, State and local regulations. On August 26, 2011, theExecutive Director executed Agreement No. E6611 for liveaboard vessel inspection services in the amount of $50,000 for a one-year term. The Harbor Department continues to require the services provided by James K. Wallace. As a result, the Wharfinger Division is requesting that the Board of Harbor Commissioners (Board) approve the First Amendment to Agreement No. E6611 with James K. Wallace for liveaboard vessel inspection services. The First Amendment will extend the term of the agreement by two years and increase the compensation by $100,000. If approved, this will change the Executive Director Agreement to a regular three year agreement. The new  resulting agreement will be for a term of three years, at an amount not-to-exceed $150,000.

Recommendation: Board resolve to (1) 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; (2) approve the First Amendment to Agreement No. E6611 with James K. Wallace to increase the compensation amount by $100,000 and extend the term of the agreement by two years; (3) authorize the Executive Director and the Board Secretary to execute and attest to the First Amendment to Agreement No. E6611 for and on behalf of the Board; and (4) adopt Resolution No.____________. 
  17. Re: RESOLUTION NO. ____________ - STAFF RESPONSE TO THE PORT OF LOS ANGELES COMMUNITY ADVISORY COMMITTEE RECOMMENDATION NO. 110 REGARDING RANCHO LPG HOLDINGS, LLC FACILITY

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SUMMARY: Port of Los Angeles Community Advisory Committee (PCAC) Recommendation No. 110 requests that the City of Los Angeles Harbor Department (Harbor Department) revoke Revocable Permit No. 10-05 (the rail line permit that connects the North Gaffey Street terminal to the interstate railroad system); perform a risk assessment of the Rancho LPG Holdings, LLC (Rancho) facility and all hazardous commodities transported through the Port of Los Angeles (Port) and nearby  communities via pipelines, railroad tank cars, and tank trucks; and that the Board of Harbor Commissioners (Board) establish a working group to assist in examining the risks associated with the Rancho facility. Staff recommends denying PCAC  recommendation No. 110. Recommendation: Board resolve to (1) consider and deny the Port of Los Angeles Community advisory Committee Recommendation No. 110 for the reasons stated in this board letter; and (2) adopt the foregoing as  Resolution No. ____________.
  18. Re: RESOLUTION NO. ____________ - TO REPLACE THE COMMERCIAL PAPER LIQUIDITY PROVIDER, INCREASE THE LINE OF CREDIT TO $250 MILLION, AND EXTEND THE PROGRAM THROUGH JULY 2015

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SUMMARY: Staff recommends the approval of two three-year Line of Credit Agreements with Mizuho Corporate Bank Mizuho),  headquartered in Tokyo, Japan and Wells Fargo Bank, National Association (Wells Fargo), headquartered in San Francisco, California to provide standby liquidity support of $125 million each for a total of $250 million for the City of Los Angeles Harbor Department’s (Harbor Department) Commercial Paper (CP) Program. The Harbor Department’s current CP Program has liquidity support from a $200 million, three-year Line of Credit Agreement with JP Morgan Chase Bank that will expire on July 29, 2012. The proposed standby line of credit increase and new three-year Line of Credit Agreements will extend the CP Program through July 2015 and continue to provide the Harbor Department with an efficient and cost effective method of meeting financing needs to support capital projects before long-term debt is used and, if necessary, a way to fund working capital needs. Recommendation: Board resolve to (1) adopt pursuant to the Los Angeles City Charter (LACC) Section 609 and the Bond Procedural Ordinance of the City of Los Angeles Administrative Code (LAAC) Sections 11.28.1 through 11.28.9, the attached Resolution approving, among other matters, the following four principal documents related to the City of Los Angeles Harbor Department’s CP Program: the Amended and Restated Issuing and Paying Agent Agreement; the three-year Credit Agreements with Mizuho Corporate Bank, Ltd. and Wells Fargo Bank, National Association; the Mizuho Fee Letter; the Wells Fargo Fee Letter; and, the Offering Memorandum; (2) direct the Executive Director or her designee to undertake jointly and severally any and all actions that are necessary and consistent with the Resolution to establish and implement the issuance and remarketing of the CP Program, subject to the discretionary right if the City Council to review such documents pursuant to the requirements of LAAC Section 11.28.2; (3) direct the Board Secretary, pursuant to LACC Section 609 and the Bond Procedural Ordinance of the LAAC Sections 11.28.1 through 11.28.9, to certify that the Board has adopted the resolution and, on behalf of the Harbor Commissioners, immediately transmit for further processing certified copies of the Resolution, Board report, and all related documents to the Mayor, Office of the City Administrative Officer, and the City Council; and (4) adopt Resolution No. ____________.
  19. Re: RESOLUTION NO. ____________ - APPROVAL OF A GRANT AGREEMENT WITH SEASIDE TRANSPORTATION  SERVICES, LLC. UNDER THE PORT OF LOS ANGELES AIR QUALITY MITIGATION INCENTIVE PROGRAM FOR THE RETROFIT OF RUBBER-TIRED GANTRY CRANES

Transmittal 1

SUMMARY: In December 2007, the Board of Harbor Commissioners (Board) awarded an Air Quality Mitigation Improvement Program (AQMIP) Grant in the not-to-exceed amount of $875,000 to Seaside Transportation Services, LLC. (STS), located on Terminal Island, California. The grant was to be used to retrofit 14 rubber-tired gantry cranes (RTGs) with California Air Resources Board (CARB) Level III  verified diesel particulate filters (DPFs). At the time, the technology for Level III DPFs was still new and had not yet received CARB verification. As a result, usage of the grant for retrofitting RTGs was put on hold until the DPF technology could be verified at Level III by CARB. In the meantime, STS requested that $350,000 of the grant be reallocated to retrofit 14 top picks with emission control technologies. The Board approved this modification to the grant in June 2011, and all 14 top picks have been retrofitted and are in operation. CARB Level III DPF verification is still pending, so STS has now requested that they be allowed to retrofit their RTGs with CARB-verified Level II DPFs that can be modified for Level III performance, if and when the DPF is CARB-verified at Level III. When this occurs, STS will adjust the DPFs to meet the higher level. This modification will allow STS to achieve emissions reductions right away rather than continue to wait for Level III verification. Staff  ecommends the Board allow STS to retrofit the RTGs with the available Level II DPFs and withhold 25 percent, or $131,250 until the RTGs can be modified to Level III or better emissions reductions. Recommendation: Board resolve to (1) approve the three-year Air Quality Mitigation Improvement Program Grant Agreement between the City of Los Angeles Harbor Department and Seaside Transportation Services, LLC., in the not-to-exceed amount of $525,000 for 11 RTG retrofits; (2) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement for and on behalf of the Board; and (3) adopt Resolution No. ____________.
  20. Re: RESOLUTION NO. ____________ - APPROVE FISCAL YEAR 2012/13 ANNUAL BUDGET

Transmittal 1

SUMMARY: The proposed Fiscal Year (FY) 2012/13 Annual Budget of $954,131,832 reflects the City of Los Angeles Harbor Department’s (Harbor Department) efforts to align initiatives under its newly established Port of Los Angeles (Port) 2012-2017 Strategic Plan (Strategic Plan) with the associated costs to achieve them, balanced with projected amounts of revenues. It includes the revenues, expenses, and capital improvement plan for the Harbor Department based on key financial metrics in accordance with the Harbor Department’s Financial Policies. The proposed budget is consistent with the preliminary information provided to the Board of Harbor Commissioners (Board) during the budget hearing held on March 15, 2012; no significant changes were made subsequent to the hearing. Recommendation: Board resolve to (1) adopt the proposed Fiscal Year 2012/13 Annual Budget for the Harbor Department and appropriate funds in accordance therewith; (2) authorize the Executive Director, or designee, to make any technical adjustments consistent with Board action(s) to the Fiscal Year 2012/13 budget documents, so as to provide for the implementation of this budget; and (3) adopt Resolution No. ____________.
  21. Re: RESOLUTION NO. ____________ - FIRST AMENDMENT TO AGREEMENT NO. 11-2995 BETWEEN THE CITY OF LOS ANGELES AND PARSONS BRINCKERHOFF, INC. (FORMERLY PB AMERICAS, INC.) FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE BERTH 200 RAIL YARD PROJECT – NAME CHANGE AND TIME EXTENSION

Transmittal 1
Transmittal 2

SUMMARY: The existing Agreement No. 11-2995 with Parsons Brinckerhoff, Inc., located in Orange, CA, will expire on July 19, 2014, approximately the same time as the estimated completion date of the Berth 200 Rail Yard project (Project), which has been delayed to reach an agreement with third parties for pipeline utility relocations associated with this Project. The First Amendment to Agreement No. 11-2995 will extend the Agreement from three to four years. This time extension is necessary for completion of  construction management services and contract closeout of the Project. No additional compensation is being requested. Recommendation: Board resolve to (1) approve First Amendment to Agreement No. 11-2995, changing the name of the consultant from PB Americas, Inc. to Parsons Brinckerhoff, Inc., and extending the term of the Agreement from three to four years; (2) authorize the Executive Director to execute, and the Board Secretary to attest to said Amendment for and on behalf of the Board pending City Council approval; (3) adopt Resolution No. ____________; and (4) direct the Board  secretary to forward the Amendment to the City Council for its approval pursuant to Section 373 of the City Charter, and Section 10.5 of the Los Angeles Administrative Code.

22. Re: RESOLUTION NO. ____________ - AWARD OF CONSTRUCTION CONTRACT CONTRACTOR: HERZOG CONTRACTING CORP. BERTH 200 RAIL YARD PROJECT SPECIFICATION NO. 2724

Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5

SUMMARY: This contract will relocate the existing Pier “A” Rail Yard to Berth 200 to accommodate expansion of the TraPac terminal at Berths 136-147. The lowest responsive and responsible bidder is Herzog Contracting Corp., located at 600 S. Riverside Rd., St. Joseph, MO 64507. The contract amount plus a 5% contingency is $94,490,341, and construction is anticipated to start in August 2012 with a contract duration of 720 calendar days. This project has been approved for reimbursement of up to $78,885,000 in federal, state, and local funds. Recommendation: Board resolve to (1) find that in accordance with the City Charter Section 1022, work under the subject Contract can be performed more feasibly by an independent contractor rather than by City employees; (2) reject Shimmick’s protest of Herzog Contracting Corp.’s bid based on staff analysis & investigation; (3) authorize the Executive Director to execute and the Board Secretary to attest to, this contract for, and on behalf of, the Board; (4) award the above mentioned contract for Item Nos. 1 through 94 of the bid proposal schedule to Herzog Contracting Corp. in the amount of $89,990,801; that a 5% contingency not included in the original contract amount be applied for a total authorization of $94,490,341; and authorize payment from the City of Los Angeles Harbor Department Construction Account. The  contract time for performance of the work will be 720 calendar days from the Notice to Proceed; (5) in accordance with City Charter 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.  ___________.
  23. Re: RESOLUTION NO. ____________ - FINAL ENVIRONMENTAL IMPACT REPORT FOR THE BERTHS 302-306 [APL] CONTAINER TERMINAL PROJECT (LAHD ADP NO. 081203-131; SCH NO. 2009071021)

Transmittal 1
Transmittal 2
Transmittal 3

SUMMARY: Staff recommends that the Board of Harbor Commissioners (Board) certify the Final Environmental Impact Report (EIR) for the Berths 302- 306 APL Container Terminal Project in accordance with the California Environmental Quality Act (CEQA), and approve the Berths 302-306 APL Container Terminal Project (Project). The Project includes improvements to the existing 291-acre terminal at Berths 302-305, including gate and lane modifications, installing up to four new wharf cranes, expanding maintenance and office space, creating a refrigerated container unit storage area, and installing utility infrastructure; and expanding the terminal by 56 acres for a total of 347 acres. The proposed expansion area work would include new wharf construction at Berth 306, installing up to eight new cranes, dredging approximately 20,000 cubic yards, Alternative Maritime Power (AMP) installation, and development of approximately 41 acres of backlands at Berth 306. An additional 11 acres adjacent to the terminal would be redeveloped and incorporated into the site to provide a new exit gate location and additional container terminal backland. Prior to approving the Project, the Board will need to certify the EIR, make specific Findings of Fact (FOF) regarding the significant  evironmental impacts of the Project and mitigation measures to reduce or avoid such impacts, adopt a statement of Overriding Considerations (SOC), and adopt a Mitigation Monitoring and Reporting Program (MMRP) to track mitigation. With the application of mitigation measures, lease measures, and standard conditions of approval, significant and unavoidable impacts from the Project remain related to air quality, health risk, greenhouse gases (GHGs), biological resources, and cumulative impacts. In addition, the Project would result in disproportionate effects on minority and low-income populations as a result of significant and unavoidable impacts related to air quality. Recommendation: board resolve to (1) certify that the Final Environmental Impact Report for the Berths 302-306 [APL] Container Terminal Project (a) has been completed in compliance with the California Environmental Quality Act, with the State California Environmental Quality Act Guidelines, and the Los Angeles City California Environmental Quality Act Guidelines; (b) was presented to the Board of Harbor  Commissioners for review and the Board considered the information contained in the Final  Environmental Impact Report prior to approving the Project; and (c) reflects the independent judgment and analysis of the City of Los Angeles Harbor Department, and that all required procedures have  been completed; (2) adopt the Findings of Fact and Statement of Overriding Considerations; (3) find that, in accordance with the information contained in the Final Environmental Impact Report, the  project will have significant environmental effects on Air Quality, Health Risk, Greenhouse Gases, Biological Resources, and Cumulative Impacts; as defined by Public Resources Code Sections 21068, 21080, 21082.2, and 21083 and the State California Environmental Quality Act Guidelines, Sections 15064, 15064.4, 15064.5, and 15382; (4) find that, in accordance with the provisions of the State
California Environmental Quality Act Guidelines Section 15091(a)(1), changes or alterations have been required in, or incorporated into, the Project, which substantially lessen or avoid the significant adverse environmental impacts identified in the Final Environmental Impact Report; (5) find that, in accordance with the provisions of the State California Environmental Quality Act Guidelines Section 15091(a)(3), specific economic, legal, social, technological, or other considerations, make infeasible certain mitigation measures and Project alternatives identified in the Final Environmental Impact  Report. Impacts to Air Quality, Health Risk, and Biological Resources remain significant and  unavoidable even after all feasible mitigation is adopted; (6)find that all information added to the Final  Environmental Impact Report after public notice of the availability of the Draft Environmental Impact Report forpublic review but before certification merely clarifies, amplifies, or makes insignificant modifications in an adequate Environmental Impact Report and recirculation is not necessary; (7) find that, in accordance with Public Resources Code Section 21081(b) and State California Environmental Quality Act Guidelines Section 15093, the benefits of the Project outweigh the significant and  unavoidable environmental impacts of the Project, and adopt the Findings of Fact and Statement of Overriding Considerations; (8) find that, in accordance with TraPac MOU #09-3764, the City of Los Angeles Harbor  Dpartment’s contribution to the Port Community Mitigation Trust Fund for this Project is $4,248,300; (9) adopt the Mitigation Monitoring and Reporting Program as required by Public  resources Code, Section 21081.6. The Mitigation Monitoring and Reporting Program is designed to ensure compliance with the mitigation measures adopted to mitigate or avoid significant effects on the environment, pursuant to and identifies the responsibilities of the City of Los Angeles Harbor  department, as lead agency, to monitor and verify project compliance with those mitigation measures and conditions of the Project approval; (10) approve the Project identified in the Environmental Impact Report including all feasible mitigation measures, lease measures and standard project conditions with consideration of the Findings of Fact and Statement of Overriding Considerations, and the Mitigation
Monitoring and Reporting Program; (11) direct the Real Estate Division to incorporate by reference the Environmental Impact Report, mitigation measures, lease measures, standard project conditions, and Mitigation Monitoring and Reporting Program into any and all lease agreements or assignments encompassed in the approved Project; (12) authorize the Environmental Management Division to file trhe Notice of Determination for the Subject Project with the Los Angeles County Clerk, the Los Angeles City Clerk, and the State Secretary of Resources; and (13) adopt Resolution No.____________.

G. SPECIAL ORDER OF THE DAY
  24(a) Re: RESOLUTION NO. ____________ - ISSUANCE OF A LEVEL III COASTAL DEVELOPMENT PERMIT (NO. 12-06) TO THE PACIFIC BATTLESHIP CENTER FOR THE USS IOWA PROJECT

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.
  24(b) Re: RESOLUTION NO. ____________ - ISSUANCE OF A LEVEL III COASTAL EVELOPMENT PERMIT (NO. 12-06) TO THE PACIFIC BATTLESHIP CENTER FOR THE USS IOWA PROJECT

Transmittal 1
Transmittal 2
Transmittal 3

SUMMARY: The Pacific Battleship Center (PBC), a 501(c)(3) nonprofit organization, is proposing to berth the USS Iowa (Iowa) battleship at Berths 87- 89 as a permanently moored naval museum. The  proposed development requires landside improvements at Berths 87-89, which include a ticket booth, office trailer, restroom facilities, two prefabricated entry platforms to accommodate ingress and egress from the Iowa, fencing, and associated utilities. Staff is recommending the Board of Harbor  Commissioners (Board) approve Coastal Development Permit (CDP) No. 12-06, a Level III, nonappealable permit for the proposed project. Recommendation: Board resolve to (1) hold a public hearing for the proposed Level III Coastal Development Permit No. 12-06; (2) find that the proposed project is in conformity with the Port Master Plan and the California Coastal Act of 1976, as amended; (3) authorize the Executive Director to approve the issuance of Coastal Development Permit No. 12-06, consistent with the project description contained in Application for Discretionary Project No.  10321-038; and (4) adopt Resolution No. ____________.

H. CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9) American Trucking Associations, Inc. v. City of Los Angeles, et al., United States District Court Case No. 08-04920-CAS, and United States Court of Appeals for the Ninth Circuit Case No. 08-56503

2. 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 (one case).

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BOARD MEETINGS

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