REGULAR MEETING AGENDA
THURSDAY, MAY 18, 2017 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
G. Approval of the Minutes
Special Meeting of April 26, 2017
H. Presentation
I. Level I Coastal Development Permit Report
The Executive Director has approved one Level I CDP:
CDP No. 17-05 Pacific Battleship Center - Concrete Pad and Flight Simulator
J. Board Reports of the Executive Director
Consent Items (1-15)
Waterfront & Commercial Real Estate
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests approval of the Second Amendment to Permit No. 708 (Permit 708) with Kinder Morgan Tank Storage Terminals LLC (Kinder Morgan) to allow for the continued operation of the marine oil terminal at Berths 118-119 until October 13, 2023. Kinder Morgan is required by the terms of the First Amendment to Permit 708 to cease operations by April 13, 2017. The extension is contingent upon Kinder Morgan gaining approval of the California State Lands Commission (CSLC) to continue to operate at Berths 118-119 after April 13, 2017 by October 13, 2017. The five-year extension is to allow Kinder Morgan time to move to a new facility in the Port of Los Angeles. Should approval by CSLC be delayed, the Executive Director may grant one additional six-month extension to April 13, 2018 under the Second Amendment for good cause. The proposed Second Amendment also includes a provision that adjusts compensation for land rent annually based upon the Consumer Price Index (CPI). Compensation for land rent is currently set at $32 per square foot per year ($1,225,469.60 per year). During calendar year 2016, Permit 708 compensation including land rent, wharfage and dockage was $2,376,994.The First Amendment extended Permit 708 for five years to allow for limited continued operations, demolition, and cleanup in consideration of a settlement in litigation involving cleanup of the former marine oil terminal at Berths 171-173. Kinder Morgan has completed the first phase of demolition and cleanup, as required in the First Amendment. Permit termination and complete site restoration remains. All maintenance and repair costs associated with the terminal and wharf will be borne by Kinder Morgan during the term of Permit 708. Kinder Morgan will assume all liability for operating the marine terminal at Berths 118-119.
Recommendation: Board resolve to (1) find 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 as determined by the Director of Environmental Management; (2) approve the Second Amendment to Permit No. 708 with Kinder Morgan Tank Storage Terminals LLC; (3) direct the Board Secretary to transmit the Second Amendment to the City Council for approval pursuant to the Charter Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment to Permit No. 708 with Kinder Morgan Tank Storage Terminals LLC upon approval by City Council; and (5) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
2. RESOLUTION NO.____________ - REVOCABLE PERMIT LICENSE WITH PHILLIPS 66 COMPANY
Transmittal 1
Transmittal 2
Summary: Staff requests approval of a Revocable Permit License for Phillips 66 Company (Phillips 66) for use and occupancy of the following premises on a no-fee basis within the Harbor District described as: Location 1: The parking lot at Berths 54 and 55 and Location 2: The north end of the parking lot at 22nd Street Park. The Revocable Permit License is required to allow Phillips 66 at their sole expense to complete the activities involved in the removal and in-place abandonment of the out-of-service Union Oil Harbor pipelines. Staff has been working with Phillips 66 since January 2016 to provide access to the pipelines. Phillips 66 was performing the work under the former Temporary Entry and Use Permit (TEUP) No. 1565. Due to equipment breakdown, Phillips 66 was not able to complete their work during the term of the TEUP and has requested to finish the removal and in-place abandonment of the out-of-service pipelines. On January 12, 2017, the approval of the new Temporary Entry and Use Permit policy limited the application of TEUPs for special event applications only. Currently, the proper real estate entitlement to provide non-possessory rights to perform this type of access, maintenance, and repair work is a Revocable Permit License which requires approval by the Board of Harbor Commissioners as requested in this staff report.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(17) 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 Harbor Department Leasing Policy to allow for no rent to be charged for removal and in-place abandonment of the existing pipelines; (3) approve the Revocable Permit License for Phillips 66 Company; (4) authorize the Executive Director to execute the Revocable Permit License; and (5) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Order resetting compensation for Permit No. 899 (P899) with Pacific Battleship Center (PBC). P899 was granted on May 25, 2012, and has a term of ten years with two, five-year options to renew. As required in P899, the annual fixed minimum compensation shall be reset each successive five-year period. Currently, annual rent is the greater of $100,000 or four percent of gross receipts. PBC's average annual compensation paid in the last three years was $111,622. During the initial year of the second five-year period of May 25, 2017 to May 24, 2022, the fixed minimum compensation is proposed to remain unchanged at $100,000 per year. Beginning the second year of the second five-year period, the fixed minimum compensation shall be adjusted based on the Consumer Price Index (CPI). Percentage rent is proposed to remain at four percent of gross receipts.
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 Class or Section 2(f) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Order resetting compensation under Permit No. 899 with Pacific Battleship Center for the five-year period of May 25, 2017 to May 24, 2022; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 899 with Pacific Battleship Center; and (4) adopt Resolution No.____________ and Order No.____________.
Waterfront & Commercial Real Estate
4. RESOLUTION NO.____________ - APPROVE SECOND AMENDMENT TO PERMIT NO. 907 WITH SSA PACIFIC, INC.
Summary: Staff requests approval of the Second Amendment to Permit No. 907 (P907) with SSA Pacific, Inc. (SSA). The second Amendment will provide a five-year extension with the right to terminate after the second year and increase the Minimum Annual Guarantee (MAG) by 18 percent, from $348,409 to $410,749 per year, with annual Consumer Price Index adjustments in subsequent years. SSA's average annual compensation paid in the last three years was $547,666.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class or Section 1 (14) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the proposed Second Amendment to Permit No. 907 with SSA Pacific, Inc.; (3) direct the Board Secretary to transmit the Second Amendment to Permit No. 907 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 Second Amendment to Permit No. 907 upon approval by City Council; and (5) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the annual budget for Fiscal Year (FY) 2017/2018 under Agreement No. 13-3125 (Agreement) between Westrec Marina Management, Inc. (Westrec) and the City of Los Angeles Harbor Department (Harbor Department). Westrec's budget proposal for FY 2017/2018 continues to improve on past FY performance in both operating income and operating expense percentage ratio to total revenue. Westrec’s proposed FY 2017/2018 budget continues an upward trend in operating income with a projected 11 percent increase from FY 2016/2017. The operating expense percentage ratio to total revenue is also expected to reach industry standard levels at 54 percent of total revenue, which continues a positive trend from previous years. The Agreement provides for the operation, management, and maintenance of the Cabrillo Way Marina (CWM) and its structures/facilities located in San Pedro on behalf of the Harbor Department. The Agreement has a five-year term (July 1, 2013 through June 30, 2018), with two five-year option periods to extend the term. The Agreement requires the Operator (Westrec), with input from the Harbor Department, to prepare an annual budget for operation of the marina for approval by the Harbor Department. The first proposed annual budget for FY 2013/2014 was approved at the Agreement's inception and was provided as an initial estimate of the proposed revenues and expenses. The initial expense and revenue budgets were produced as part of a competitive Request for Proposal (RFP) process in which Westrec was the successful proposer.
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 Westrec Marina Management, Inc. annual budget for Fiscal Year 2017/2018 under Agreement No. 13-3125; and (3) adopt Resolution No.____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Revocable Permit License (RP License) with Harbor Breeze Corp. (Harbor Breeze) for the operation of commercial charter vessel passenger operations at the Downtown Harbor located at Berth 85, as well as use of the Downtown Harbor for tours scheduled on behalf of the City of Los Angeles Harbor Department (Harbor Department). The RP License is for a period of three years, with two one-year renewal options. The Harbor Department reserves the right to cancel all or a portion of the RP License upon giving 90 days' written notice. Based on past performance in 2016, and projections from Harbor Breeze, annual income from this RP License is expected to reach $17,500.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III, Class 1(18b) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the Revocable Permit License with Harbor Breeze Corp.; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Revocable Permit License; and (4) adopt Resolution No.____________.
Cargo & Industrial Real Estate
7. RESOLUTION NO.____________ - APPROVE CONVEYANCE OF UTILITY EASEMENT GRANT DEED AMONG THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PORT OF LONG BEACH AS JOINT-OWNERS AND THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the conveyance of the Utility Easement Grant Deed from the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) to the Metropolitan Water District (MWD) of Southern California, a public corporation. The easement is located on Butte Street, which is currently owned by the City of Los Angeles (City) but is to be transferred to the Harbor Department and POLB as joint owners. As part of the condition and approval for the Butte Street vacation process, the Harbor Department and POLB will execute the Utility Easement Grant Deed for MWD in order to preserve the full width of the Butte Street alignment as a nonexclusive easement to maintain, repair, use, and operate a 51-inch water pipeline. The execution of the easement is the last condition required prior to approval of the Butte Street vacation. There is no compensation involved in the easement transfers or any further rental costs.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environment Quality Act (CEQA) under Article III Class 5(4) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the conveyance of a Utility Easement Grant Deed from the between the City of Los Angeles Harbor Department and Port of Long Beach as joint owners to the Metropolitan Water District of Southern California; (3) authorize the Executive Director to execute and the Board Secretary to attest to the conveyance of the Utility Easement Grant Deed; and (4) adopt Resolution No.____________.
Cargo & Industrial Real Estate
8. RESOLUTION NO.____________ - APPROVE CONVEYANCE OF UTILITY EASEMENT GRANT DEED AMONG THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND PORT OF LONG BEACH AS JOINT-OWNERS AND LOS ANGELES DEPARTMENT OF WATER AND POWER
Transmittal 1
Transmittal 2
Summary: Staff requests approval of the conveyance of Utility Easement Grant Deed from the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) to the Los Angeles Department of Water and Power (LADWP). The easement is located on Butte Street, which is currently owned by the City of Los Angeles (City) but is to be transferred to the Harbor Department and POLB as joint owners. As part of the condition and approval for the Butte Street vacation process, the Harbor Department and POLB will execute the Utility Easement Grant Deed for LADWP in order to preserve its overhead power distribution line located over the Butte Street right-of-way. This easement is a nonexclusive, 10-foot wide area to maintain, repair, use, and operate an overhead power distribution line. The execution of the easement is the last condition required prior to approval of the Butte Street vacation. There is no compensation involved in the easement transfers or any future rental costs.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environment Quality Act (CEQA) under Article III Class 5(4) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve the conveyance of a Utility Easement Grant Deed from the City of Los Angeles Harbor Department and the Port of Long Beach as joint owners to the Department of Water and Power; (3) authorize the Executive Director to execute and the Board Secretary to attest to the conveyance of the Utility Easement Grant Deed; and (4) adopt Resolution No.____________.
Cargo & Industrial Real Estate
9. RESOLUTION NO.____________ - APPROVE REVOCABLE PERMIT NO. 17-04 WITH SOUTH BAY CENTER FOR COUNSELING
Transmittal 1
Summary: Staff requests approval of Revocable Permit (RP) No. 17-04 with South Bay Center for Counseling (SBCC) as the appropriate entitlement for the continued use of a City of Los Angeles Harbor Department (Harbor Department) 7,200 square foot (s.f.) lot located at 1001 Goodrich Street, Wilmington, for the storage of a large trash bin and other related landscaping and cleanup supplies. SBCC directly improves the aesthetic appearance of the Port of Los Angeles (Port) community through its landscaping and cleanup activities. SBCC has reported their 2016/2017 value of services in the Wilmington community to be $36,000. Rent from the remnant parcel, at current market levels, is estimated at $19,440 per year. Given the benefits received by the local community and the Harbor Department from the services provided by SBCC, rent for SBCC, a non-profit organization, will be discounted to $0 per month in exchange for the services it provides to the community. SBCC will be financially responsible for all costs, including utilities and maintenance, of the premises. Pursuant to the Port's Leasing Policy, the Board of Harbor Commissioners (Board) is required to approve discounted rent.
Recommendation: Board resolve to (1) find 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 as determined by the Director of Environmental Management; (2) find that the value of services delivered to the community exceeds the market rental value of the property, and the rent that would be due and owed imposes an understandable hardship; (3) approve Revocable Permit No. 17-04 with South Bay Center for Counseling; (4) authorize the Executive Director to execute and the Board Secretary to attest to Revocable Permit No. 17-04; and (5) adopt Resolution No.____________.
Environmental Management
10. RESOLUTION NO.____________ - AWARD OF CONTRACT NO. 39820 TO STORMWATERX, LLC FOR THE PURCHASE OF A TREATMENT SYSTEM FOR THE NEW DOCK PUMP STATION, 151 SOUTH HENRY FORD AVENUE, WILMINGTON, CA
Transmittal 1
Transmittal 2
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve Contract No. 39820 with StormwateRx, LLC (StormwateRx) for the purchase of a water treatment system. The treatment system will be installed at the New Dock Pump Station (Pump Station) to treat groundwater and surface stormwater runoff in order to assist with meeting discharge requirements under a National Pollution Discharge Elimination System (NPDES) permit. The City of Los Angeles Harbor Department (Harbor Department) is financially responsible for the purchase and maintenance of the water treatment system for the estimated amount of $204,233.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III, Class 1(6) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) approve Contract No. 39820 with StormwateRx, LLC of Portland, Oregon in the amount of $204,233; (3) authorize the Executive Director to execute and Board Secretary to attest to said contract for and on behalf of the Board; and (4) adopt Resolution No.____________.
Contracts & Purchasing
11. RESOLUTION NO.____________ - AWARD OF CONTRACT NO. 39810 TO STAPLES, INC. FOR THE PURCHASE OF GENERAL OFFICE SUPPLIES
Transmittal 1
Transmittal 2
Summary: Staff requests approval to award Contract No. 39810 to Staples, Inc. (Staples), headquartered in Framingham, MA, for the purchase of general office supplies. Contract No. 39810 is a one-year contract, with two, one-year renewal options at an annual amount not-to-exceed $350,000. Through this contract, the City of Los Angeles Harbor Department (Harbor Department) will purchase general office supplies required for daily business operations. Contract No. 39810 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 exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve Contract No. 39810 with Staples, Inc. for a term of one-year at an amount not-to-exceed $350,000, with two, one-year renewal options at an annual amount not-to-exceed $350,000; (3) authorize the Executive Director to execute the proposed contract; (4) authorize the Executive Director or designee, in his/her discretion, to exercise two, one-year renewal options at an amount not-to-exceed $350,000 annually, subject to budget authorization in each year; and (5) adopt Resolution No.____________.
Construction
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Summary: Staff requests that the Board of Harbor Commissioners (Board) approve the award of the construction contract for Berth 93 Cruise Terminal - Customs and Border Protection (CBP) Security Improvements (Project) to JRH Construction Company, Inc. (JRH Construction). The Project will include improvements to CBP primary and secondary passenger processing areas, a closed circuit television system, an access control system, and related construction to accommodate the security improvements. The lowest responsive and responsible bidder is JRH, located at 17795 Sky Park Circle, Ste. J, Irvine, CA 92614. The contract amount, plus a 15% contingency, is $2,526,520. The contract duration is 240 calendar days. The Harbor Department is financially responsible for expenses incurred under this contract.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(1), of the Los Angeles City CEQA Guidelines; (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) waive the informality in JRH Construction’s bid for not including the Affidavit of Non-Collusion at the time of bid; (4) award and approve, Specification No. 2778, for Item Nos. 1 through 9 of the proposal schedule, to JRH Construction, in the amount of $2,196,974; that a 15% contingency not included in the original contract amount be applied for a total authorization of $2,526,520; and authorize payment from the Harbor Department Construction Account. The contract time for performance of the work will be 240 calendar days from Notice to Proceed; (5) authorize the Executive Director to execute and the Board Secretary to attest to this contract for and on behalf of the Board; (6) 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 (7) adopt Resolution No.____________.
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 T&M Construction. The City of Los Angeles Harbor Department’s (Harbor Department) Asphalt and Concrete Recycling Program provides for the re-use/recycling of construction debris that otherwise would be disposed of at a landfill. The program consists of crushing salvaged concrete and asphalt concrete rubble into crushed miscellaneous base (CMB) for reuse under new asphalt and concrete pavements throughout the harbor. This contract is part of the Harbor Department's sustainable design and construction policies and practices to recycle and reuse materials to protect the environment. The lowest responsive and responsible bidder is T&M Construction, located at 780 W. Channel Street, San Pedro, California 90731. The contract amount is $3,061,910 and the contract duration is 730 calendar days. The Harbor Department is financially responsible for expenses incurred under the proposed contract.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(37) 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, 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. 2785 for Item Nos. 1 through 10 of the proposal schedule to T&M Construction, in the amount of $3,061,910; and authorize payment from the Harbor Department Construction Account. The contract time for performance of the work will be 730 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.____________.
Management Audit
14. RESOLUTION NO.____________ - TO APPROVE AGREEMENTS WITH CONSULTANTS TO PERFORM AUDIT AND CONSULTANT SERVICES
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
Transmittal 7
Transmittal 8
Transmittal 9
Transmittal 10
Transmittal 11
Transmittal 12
Transmittal 13
Transmittal 14
Summary: Staff requests approval of agreements with 12 consulting firms to perform audit and consulting services to augment its internal staff in performing management audits of its operations on an as-needed basis. The proposed not-to-exceed amount is $1,130,000 over the next five years. As audit projects are identified, they will be funded by professional services agreements, contingent upon available funding. Expenses incurred under the proposed agreements are 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) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) find that in accordance with the City of Los Angeles Charter Section 1022, work under the subject Agreements is temporary in nature and can be performed more feasibly by independent consultants rather than by City employees; (3) approve and appoint the audit pool consisting of twelve (12) selected audit firms for a period of five years; (4) authorize the Executive Director or designee to approve Task Orders on a per project basis, contingent upon verification of available funding, as adopted by the Board for each budget year, not to exceed an aggregate amount of $1,130,000 in total compensation authority among the group list over the contract period; (5) direct the Board Secretary to transmit said agreements to City Council for approval pursuant to Section 10.5 of the Los Angeles City Administrative Code; (6) authorize the Executive Director to execute and the Board Secretary attest to said agreements upon approval by City Council; and (7) adopt Resolution No.____________.
Construction & Maintenance
15. RESOLUTION NO.____________ - AWARD OF CONTRACT NO. 39815 TO NATIONAL AUTO FLEET GROUP FOR PURCHASE OF LIGHT/MEDIUM DUTY TRUCKS AND PASSENGER CARS
Transmittal 1
Summary: Staff requests that the Board of Harbor Commissioners approve Contract No. 39815 with National Auto Fleet Group of Watsonville, California for the purchase and delivery of light/medium duty trucks and passenger cars as identified in the capital equipment budget proposed as a part of the Harbor Department's Fiscal Year 2017-18 annual budget in the not to exceed amount of $4,500,000 annually. This one-year contract with two one-year renewal options 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) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) find that in accordance with City of Los Angeles Administrative Code Division 10, Chapter 1, Article 2, Section 10.15 (a)(8), the Harbor Department may enter into an agreement with National Auto Fleet Group utilizing a current agreement for such services with the National Joint Powers Alliance (NJPA) through their Contract No. 120716-NAF, a cooperative purchase agreement; (3) approve Contract No. 39815 with National Auto Fleet Group in the amount of $4,500,000 for a period of one year, with two one-year renewal options in the same amount annually to be exercised by the Executive Director or his/her designee; (4) authorize the Executive Director to execute and Board Secretary to attest to Contract No. 39815 for and on behalf of the Board; and (5) adopt Resolution No.____________.
Regular Items (16 - 20)
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Second Amendment to Operating Agreement No. 13-3112 (Agreement) with Ports America Cruise, Inc. (Ports America). The proposed Second Amendment allows the City of Los Angeles Harbor Department (Harbor Department) to provide a one-time reimbursement to Ports America of $28,758.62 for providing services in connection with the Harbor Department-hosted inaugural 2016 Los Angeles Fleet Week (Fleet Week), and to reimburse Ports America up to $50,000 during the remaining term of the Agreement for any expenses they may incur as a result of events hosted by 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 III Class 1(14) of the Los Angeles City CEQA Guidelines as determined by the Director of Environmental Management; (2) ratify and authorize a one-time reimbursement in the amount of $28,758.62 to Ports America Cruise, Inc. for services performed during 2016 Los Angeles Fleet Week; (3) authorize payment in amount of $28,758.62 to Ports America Cruise, Inc. from the Community Relations Budget (Account 52040, Center 0220); (4) approve the Second Amendment to Operating Agreement No. 13-3112 with Ports America Cruise, Inc.; (5) direct the Board Secretary to transmit the Second Amendment Operating Agreement No. 13-3112 to City Council for approval pursuant to Charter Section 606 of the City Charter; (6) authorize the Executive Director to execute and the Board Secretary to attest to the Second Amendment to Operating Agreement No. 13-3112 upon approval by City Council; and (7) adopt Resolution No. ____________.
Contracts & Purchasing
17. RESOLUTION NO.____________ - LOCAL BUSINESS PREFERENCE PROGRAM
Transmittal 1
Summary: Staff requests that the Board of Harbor Commissioners (Board) extend the Local Business Preference Program (LBPP) for six months. On April 5, 2012, the Board authorized the implementation of the LBPP. As part of the adoption of the LBPP, the Board recommended that the LBPP sunset five years from the implementation date unless the Board took further action to extend the LBPP. Any financial impact from the LBPP is the responsibility of the Harbor Department.
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 II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) authorize the continuation of the Local Business Preference Program for six months; (3) instruct staff to report back to the Board in six months on the Local Business Preference Program; and (4) adopt Resolution No.____________.
Contracts & Purchasing
18. RESOLUTION NO.____________ - AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND MERRIWETHER & WILLIAMS INSURANCE SERVICES, INC. FOR THE CITYWIDE BOND ASSISTANCE PROGRAM
Transmittal 1
Transmittal 2
Summary: Staff is requesting approval to award an Agreement to Merriwether & Williams Insurance Services, Inc. (Los Angeles, CA) for the Citywide Bond Assistance Program. The proposed agreement is for a three-year term, commencing March 1, 2016, at an amount not to exceed $450,000. This Agreement 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 exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f), of the Los Angeles City CEQA Guidelines; (2) find that in accordance with the City Charter Section 1022, City employees do not have the expertise to perform the work covered under this Agreement; (3) approve the Agreement with Merriwether & Williams Insurance Services, Inc. in an amount not to exceed $450,000 for a term of three-years commencing March 1, 2016; (4) authorize the Executive Director or designee to execute and attest to the Agreement; and (5) adopt Resolution No.____________.
Construction
19. RESOLUTION NO.____________ - AWARD AND APPROVAL OF CONSTRUCTION CONTRACT CONTRACTOR: VORTEX MARINE CONSTRUCTION, INC. BERTHS 196-199 WHARF REHABILITATION SPECIFICATION NO. 2766A
Transmittal 1
Transmittal 2
Transmittal 3
Summary: Staff requests that the Board of Harbor Commissions (Board) approve the award of this construction contract to Vortex Marine Construction, Inc. (Vortex Marine). This project consists of wharf repair work at Berths 196-199, Wallenius Wilhelmsen Logistics, which is required to be performed by the Harbor Department under Permit No. 900. The lowest responsive and responsible bidder is Vortex Marine, located at 1 Maritime Way, Antioch, California 94509. The contract amount, plus a 15% contingency, is $9,185,740. The contract duration is 490 calendar days. The Harbor Department is financially responsible for expenses incurred under the proposed contract.
Recommendation: Board resolve to (1) find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(4) 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, 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. 2766A for Item Nos. 1 through 79 of the proposal schedule to Vortex Marine, in the amount of $7,987,600; that a 15% contingency not included in the original contract amount be applied for a total authorization of $9,185,740; and authorize payment from the Harbor Department Construction Account. The contract time for performance of the work will be 490 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.____________.
Cargo Marketing
20. RESOLUTION NO.____________ - APPROVAL OF FOREIGN TRADE ZONE GENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND CALIFORNIA CARTAGE COMPANY LLC FTZ 202, SITE 1A
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Summary: Staff requests the approval of the Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and California Cartage Company LLC (California Cartage) to continue operating its warehouse within FTZ 202, Site 1A, located at 2401 East Pacific Highway, Wilmington, California 90744. The Harbor Department, as the FTZ grantee, establishes General Purpose Operating Agreements with FTZ operators to oversee their FTZ operations. Currently, the Harbor Department and California Cartage have an FTZ Operating Agreement No. 16-3440 which will expire on May 29, 2017. California Cartage wishes to continue operating its warehouse as a FTZ warehouse thus, the Harbor Department needs to execute a new Agreement as required by the FTZ Board. Site 1A consists of a warehouse and office space of approximately 600,000 square feet on 84 acres located about five miles from the Port of Los Angeles. California Cartage will be operating its warehouse under FTZ procedures as a multi-usage site. This proposed Agreement will not require funding by the Harbor Department. The proposed Agreement is for a term of one year, commencing on the first day of the month subsequent to the Harbor Department's approval of this agreement. Upon approval, the proposed Agreement is for one year or upon the termination of the License, whichever occurs earlier.
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 Foreign-Trade Zone Operating Agreement between the City of Los Angeles Harbor Department and California Cartage Company LLC; (3) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Foreign-Trade Zone Operating Agreement; and (4) adopt Resolution No._____________.
CLOSED SESSION
K. Closed Session Items
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9
Natural Resources Defense Council, et al. v. City of Los Angeles, et al., Los Angeles Superior Court Case No. BS070017
2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Subdivision (b) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (b) of
Section 54956.9 (two cases).
3. 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 (2) cases).
4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 899 with Pacific Battleship Center:
Property: Berths 87-89, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Jonathon Williams
Negotiating Parties: City and Pacific Battleship Center
Under Negotiation: Price and Terms
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 892 with Tri-Marine Fish Company, LLC:
Property: Berth 264, Terminal Island
City Negotiator: Jack Hedge
Tenant Negotiator: Anthony Vuoso
Negotiating Parties: City and Tri-Marine Fish Company, LLC
Under Negotiation: Price and Terms
L. Adjournment