Los Angeles Board of Harbor Commissioners
Harbor Administration Building
425 S. Palos Verdes Street
San Pedro, California 90731
San Pedro, California 90731
REGULAR MEETING AGENDA
THURSDAY, JULY 25, 2024 AT 10:00 AM
Board of Harbor Commissioners
Lucille Roybal-Allard, President
Diane L. Middleton, Vice President
Michael Muñoz
Edward R. Renwick
I. Lee Williams
BOARD MEETINGS - The Board’s Regular Meetings are held at 10:00 A.M. at the Harbor Administration Building Boardroom as scheduled on the Port’s website at www.portoflosangeles.org. A quorum of three of five Commissioners is required to transact business and three Aye votes are required to carry a motion.
OPPORTUNITIES FOR THE PUBLIC TO ATTEND THE MEETING AND PROVIDE PUBLIC COMMENTS
- Members of the public may attend the Board meeting in person at the Harbor Administration Building located at 425 S. Palos Verdes St., San Pedro, CA 90731.
- Board meetings may be heard at: (213) 621-CITY (Metro), (818) 904-9450 (Valley), (310) 471-CITY (Westside) and (310) 547-CITY (San Pedro Area) with live broadcast accessibility at https://www.portoflosangeles.org/commission/agenda-archive-and-videos.
- In-Person Comments: Live, oral public comments will be taken in person, only, and not via teleconference. Members of the public will be given an opportunity to address the Board on (1) any item on the agendas prior to the Board’s consideration of that item, including the consent and closed session agenda; and (2) subjects within the subject matter jurisdiction of the Board (general public comment). Members of the public who wish to speak should complete a speaker card indicating the agenda item number on which they will comment, or designate “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 if such period of time should be reduced or extended based upon, but not limited to, such factors as the length of the agenda or substance of the agenda items, the quantity of public comment speaker cards submitted, the need for the Board to conclude its business as expeditiously as is practicable and/or the Board is at risk of losing a quorum, among other factors. Members of the public who do not complete their comments with the time allotted, can submit their full comments in writing for inclusion in the record. Upon request, non-English speakers will be granted additional speaking time for translation assistance.
- Written comments or materials may be submitted by emailing commissioners@portla.org or brought to the meeting. If you request to distribute documents to the full Commission, please present the Board Secretary with twelve (12) copies. Otherwise, your materials will simply be added to the official meeting record. All written comments or materials submitted for this meeting will be provided to the Commissioners and entered into the official meeting minutes. Please submit your written comments prior to 3:00pm on the day before the scheduled meeting. Requests to distribute literature to the general public attendees of the meeting shall be placed on a literature table outside the Boardroom during and until 30 minutes after the Board meeting.
- Para sumetir su comentario en español, se puede enviar a nuestro correo electrónico: commissioners@portla.org, un día antes de la junta, o puede llamar a nuestra Oficina de Comisionados al (310) 732-3444 para grabar su mensaje. Alguien de nuestra oficina estará disponible para traducir su comentario en inglés y entregarlo a los Comisionados del Puerto.
ADDITIONAL INFORMATION
- Commission actions are not final until the expiration of the next five meeting days of the City Council except actions subject to appeal or review by the Council pursuant to the Charter, ordinance or other applicable law. 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 website (www.portoflosangeles.org/). Updated agendas will also be available at the meeting.
- Notice to Paid Representatives: If you are compensated to monitor, attend, or speak at this meeting, City law may require you to register as a lobbyist and report your activity. See Los Angeles Municipal Code 48.01 et seq. More information is available at ethics.lacity.org/lobbying. For assistance, please contact the Ethics Commission at (213) 978-1960 or ethics.commission@lacity.org.
- 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.
- If you have any questions regarding meeting procedures, please contact the Harbor Commission Office prior to the meeting at (310) 732-3444.
ORDER OF BUSINESS
OPEN SESSION
A. Roll Call
B. Approval of the Minutes
- Regular Meeting of July 11, 2024
C. Executive Director Remarks
D. Comment from the Public on Non-Agenda Items
E. Report from the Neighborhood Council Representatives – An opportunity for Neighborhood Council representatives to provide remarks on Neighborhood Council Resolutions or Community Impact Statements filed with the City Clerk which relate to any agenda item listed or being considered on this agenda for the Board of Harbor Commissioners.
F. Reports of the Commissioners
G. Board Committee Reports
None
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 10)
Cargo & Industrial Real Estate
Summary: Staff requests approval of an Order resetting compensation under Permit No. 910 (Permit) with U.S. Borax, Inc. (Borax) for the five-year period of November 6, 2022, through November 5, 2027. The premises are comprised of i) 34,419 square feet of paved land for employee parking and storage; ii) 52,432 square feet of rail spur; and iii) 27,900 square feet of water. Borax uses these areas that are adjacent to its privately-owned property to facilitate its mineral business operations on Mormon Island. Under the proposed action, Borax’s annual base rent will increase by $108,394.24, or 39.78 percent, from $272,474.48 to $380,868.72, effective November 6, 2022. Thereafter, annual rent will increase by the year-over-year change in the Consumer Price Index (CPI), subject to a floor of zero percent.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the Order resetting compensation under Permit No. 910 with U.S. Borax, Inc.; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 910; and (4) adopt Resolution No.____________ and Order No.____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of an Order resetting compensation under Permit No. 931 (Permit) with Linde Inc. (Linde) for the five-year period of April 24, 2023, through April 23, 2028. The premises are comprised of 9.08 acres of land, which Linde uses for the operation of an industrial gas separation plant, and an additional 29,246 square feet of pipeline right-of-way located in Far East Wilmington. Under the proposed action, Linde’s annual rent will increase by $677,752.78, or 55.4 percent, from $1,222,497.92 to $1,900,250.70 effective April 24, 2023. Thereafter, annual rent will increase by the year-over-year change in the Consumer Price Index (CPI), subject to a floor of zero percent.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the Order resetting compensation under Permit No. 931 with Linde Inc.; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 931; and (4) adopt Resolution No.____________ and Order No.____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of: (i) the Third Amendment to Permit No. 892 (Permit) with Cal Marine Fish Company, LLC (Cal Marine) to reduce the premises size from 248,351 square feet to 228,351 square feet effective January 1, 2024; and (ii) an Order resetting compensation under the Permit for the five-year period of November 6, 2022, through November 5, 2027. Cal Marine uses the premises to operate its fish offloading and processing facility located in Fish Harbor. Under the proposed action, taking into account the projected premises reduction, Cal Marine’s minimum annual rent will increase in a graduated manner i) from $518,385.32 to $652,611.24, a 25.89 percent increase, effective November 6, 2022; and ii) increase to $724,496.29, a 11.01 percent increase, effective November 6, 2023. Thereafter, minimum annual rent will increase by the year-over-year change in the Consumer Price Index (CPI), subject to a floor of zero percent. Further, effective November 6, 2022, the percentage rent component of compensation will increase as follows: the per pound rate for fish products will increase from $0.005 to $0.0056, and the per pound of squid will increase from $0.001 to $0.0012 subject to annual CPI adjustments thereafter through November 5, 2027.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively and categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) and Article III Class 1(14) of the Los Angeles City CEQA Guidelines; (2) approve the Order resetting compensation under Permit No. 892 with Cal Marine Fish Company, LLC.; (3) approve the Third Amendment to Permit No. 892; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Third Amendment and Order resetting compensation under Permit No. 892; and (5) adopt Resolution No.____________ and Order No.____________.
Office of the City Attorney
Summary: The Office of the City Attorney (Office) requests approval of two Agreements between the City of Los Angeles Harbor Department (Harbor Department) and Nossaman LLP (Nossaman) and Remy Moose Manley LLP (Remy) for legal services for environmental matters. Each Agreement is for a proposed term of three years and proposed compensation of $150,000 for Nossaman and $720,000 for Remy. The total compensation is $870,000 across the two Agreements. The Harbor Department is financially responsible for payment of expenses incurred under the proposed Agreements.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) find that, in accordance with Charter Section 1022 the scope of work for the proposed Agreements can be more economically or feasibly provided by an independent contractor than by City employees; (3) approve a Legal Services Agreement with Nossaman LLP in the amount of $150,000 for a three-year term; (4) approve a Legal Services Agreement with Remy Moose Manley LLP in the amount of $720,000 for a three-year term; (5) authorize the Executive Director to execute and the Board Secretary to attest to said Agreements; and (6) adopt Resolution No.___________.
Construction
Summary: Staff requests approval of an award of a contract (Contract) to RJ Daum Construction Company (RJ Daum), to construct the Harbor Administration Building Board Hearing Room and Executive Session Room Remodel (Project). The Project consists of improvements to the existing Harbor Administration Building Board Hearing Room and Executive Session Room including the following: replacement of existing audio/visual (A/V) equipment, construction of a secure A/V room, modifications to the stage area, new lighting, construction of a larger conference table and kitchenette, and accessibility modifications. The lowest responsive and responsible bidder is RJ Daum, located at 11581 Monarch Street, Garden Grove, CA 92841. The Contract amount of $3,328,284 plus 10% contingency totals $3,661,112.40, and the Contract duration is 420 calendar days. The City of Los Angeles Harbor Department (Harbor Department) will be financially responsible for the payment of expenses incurred under the proposed Contract.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively and categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) and Article III Class 1(1) of the Los Angeles City CEQA Guidelines; (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. 2835 for Item Nos. 1 through 11 of the Bid Proposal Line Items to RJ Daum for $3,328,284; that a 10% contingency not included in the original Contract amount to be applied for a total authorization of $3,661,112.40 and authorize payment from the Harbor Department Construction Account. The Contract time for performance of the work shall be 420 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) delegate and authorize the Executive Director to adjust the final bid quantities and accept the construction Contract upon its completion in accordance with City Charter Section 655 (g); and (6) adopt Resolution No.____________.
Engineering
Summary: Staff requests approval of the First Amendment to Agreement No. 22-9899 (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and AECOM Technical Services, Inc. (AECOM) to continue to provide on-call engineering services supporting the Harbor Department’s Capital and Maintenance Improvement Programs. The proposed First Amendment will increase compensation by $2,000,000, from the current budget of $5,000,000 to $7,000,000. The three-year term will remain the same. The Harbor Department will continue to be financially responsible for payment of expenses incurred under the Agreement.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) find that in accordance with the City Charter Section 1022, work under the subject Agreement can be performed more feasibly by an outside contractor than by City employees; (3) approve the First Amendment to Agreement No. 22-9899 between the City of Los Angeles Harbor Department and AECOM Technical Services, Inc.; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Amendment for and on behalf of the Board; and (5) adopt Resolution No.__________.
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.___________.
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.___________.
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.___________.
Commission Office
Recommendation: Board resolve to adopt subject Resolution No.___________.
Regular Items (11 – 15)
Debt & Financial Analysis
Summary: Staff requests adoption of a resolution authorizing the issuance of City of Los Angeles Harbor Department (Harbor Department) 2024 Refunding Revenue Bonds (2024 Refunding Bonds) as part of a bond transaction (Transaction). Under the proposed Transaction, the 2024 Refunding Bonds will refund (i.e. refinance) all of the Harbor Department's 2014 Series A, B and C Bonds (the 2014 Bonds), which are currently outstanding in a principal amount of $270,950,000. Following an August 1, 2024 debt service payment, $264,695,000 in principal will be outstanding. The proposed Transaction will not change the final maturity of the refunded bonds or result in additional debt, but it will replace higher interest rate debt with lower interest rate debt thereby resulting in lower debt service payments for the Harbor Department. The Transaction is expected to result in combined present value savings of approximately $27,824,000 or 10.51% of the bonds to be refunded with an average annual debt service savings of $1,987,000 through August 2044. It is estimated that the all-in, true interest cost of the Transaction will be approximately 4.03%. The Harbor Department will be financially responsible for the payment of debt service associated with the 2024 Refunding Bonds.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) authorize the issuance of the City of Los Angeles Harbor Department 2024 Refunding Revenue Bonds, in one or more series, through a negotiated sale in a combined principal amount not-to-exceed $245,000,000 and with a final maturity no later than August 1, 2044; (3) authorize the current refunding of the Harbor Department's 2014 Bonds with the proceeds of the 2024 Refunding Bonds, subject to the parameters set forth in this Resolution; (4) ratify actions taken by officers, employees, and agents of the Harbor Department prior to the date the Resolution becomes final, including holding a public hearing regarding the 2024 Refunding Bonds pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended, following notice duly given, and printing and distribution of the Preliminary Official Statement, consistent with the Board action; (5) direct the Board Secretary, pursuant to Charter Section 609 and the Bond Procedural Ordinance (LAAC Sections 11.28.1 through 11.28.9) to certify that the Board has adopted the Resolution and, on behalf of the Board, immediately transmit for further processing certified copies of the Resolution and copies of the Board item and Transmittals to the Mayor, to the City Administrative Officer, and to the City Council; and (6) adopt Resolution No.____________.
Debt & Financial Analysis
Summary: Staff is requesting approval of a Resolution to appoint Jefferies LLC as senior manager, and Samuel A. Ramirez & Company, Inc. and Loop Capital Markets LLC as co-managers for the issuance of the City of Los Angeles Harbor Department’s (Harbor Department) 2024 Refunding Revenue Bonds (2024 Refunding Bonds). The 2024 Refunding Bonds will refund (i.e. refinance) all of the Harbor Department's 2014 Series A, B and C Bonds (the 2014 Bonds), which are currently outstanding in the principal amount of $270,950,000. Following an August 1, 2024 debt service payment, $264,695,000 in principal will be outstanding. The total cost for the underwriting services will be approximately $400,000 and will include compensation for all three firms, fees for underwriters’ counsel, and other miscellaneous costs. These costs will be paid from the proceeds of the bond issuance.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) appoint the team of underwriting firms consisting of Jefferies LLC as senior manager, and Samuel A. Ramirez & Company, Inc., a Minority Business Enterprise (MBE), and Loop Capital Markets LLC, a Minority Business Enterprise (MBE) as co-managers for the negotiated sale of the Harbor Department’s 2024 Refunding Revenue Bonds; (3) this Resolution and the selection of the underwriting firms shall be subject to the City Council oversight pursuant to Section 245 of the Charter; and (4) adopt Resolution No.____________.
Financial Planning & Analysis
Summary: Staff requests approval of a proposed First Amendment to Agreement 1956, a Memorandum of Understanding (MOU) between the Los Angeles Harbor Department (Harbor Department) and the City of Los Angeles (City) for services rendered by the City to the Harbor Department in support of the Tidelands Trust. This amendment will increase the level of service provided by the Los Angeles Fire Department (LAFD) to the Harbor Department for water-based services through the addition of six new Fire Captains. These newly requested Fire Captains will supervise the operations of two fireboats which are currently overseen by Supervising Mates. The Harbor Department will be financially responsible for the payment of salary, benefit, and overhead expenses incurred under the proposed Amendment.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the proposed First Amendment to Agreement 1956, an MOU between the Harbor Department and the City of Los Angeles for services rendered by the City of Los Angeles to the Harbor Department in support of the Tidelands trust for a service level increase of six Fire Captains for the Los Angeles Fire Department; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Amendment for and on behalf of the Board; and (4) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of the proposed Agreement between the City of Los Angeles Harbor Department (Harbor Department) and AERAS Technologies, LLC (AERAS) to fund a Clean Air Action Plan (CAAP) Technology Advancement Program (TAP) project to demonstrate an emissions capture and control system for Roll-On/Roll-Off (RoRo) vessels. The total estimated cost of the AERAS Emission Control System Project (Project) is $11,315,000. The Harbor Department is financially responsible for TAP funding in the amount of $750,000 to support the demonstration and verification of the technology for use on RoRo vessels.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the Agreement between the City of Los Angeles Harbor Department and AERAS Technologies, LLC in the amount of $750,000; (3) authorize the Executive Director to execute and Board Secretary to attest to said agreement for and on behalf of the Board of Harbor Commissioners; and (4) adopt Resolution No.____________.
Engineering
Summary: Staff requests approval of a personal services agreement (Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and Mark Thomas & Company, Inc. (Consultant) of Lakewood, California, to provide professional engineering services for the Navy Way and Seaside Avenue Interchange Improvements Project (Project). The Agreement has a contract term of three years with a not-to-exceed compensation amount of $7,000,000. The Harbor Department will be financially responsible for the payment of expenses incurred under the proposed Agreement.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve a personal services agreement with Mark Thomas & Company, Inc. for engineering services for the Project with a not-to-exceed compensation amount of $7,000,000 and a term of three years; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Agreement for and on behalf of the Board; and (4) adopt Resolution No.____________.
K. Closed Session
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 – EXISTING LITIGATION
(Subdivision (d)(1) of Government Code Section 54956.9)
Natural Resources Defense Council, et al. v. City of Los Angeles, et al.
San Diego Superior Court Case No. 37-2021-00023385-CU-TT-CTL
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Permit 999 with China Shipping Holding Company, Ltd.:
Property: Berths 100-103, San Pedro
City Negotiator: Michael DiBernardo
Tenant Negotiator: Paul Nazzaro
Negotiating Parties: City and China Shipping Holding Company, Ltd.
Under Negotiation: Price and Terms
4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
(Subdivision (d)(2) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (d)(2) of Section 54956.9:
(one case)
5. CONFERENCE WITH LEGAL COUNSEL – INITIATE LITIGATION
(Subdivision (d)(4) of Government Code Section 54956.9) (1 case)
Initiation of litigation pursuant to subdivision (d)(4) of Section 54956.9: (one case)
6. CONFERENCE WITH LEGAL COUNSEL – SIGNIFICANT EXPOSURE TO LITIGATION
(Subdivision (d)(2) of Government Code Section 54956.9)
Significant exposure to litigation pursuant to subdivision (d)(2) of Section 54956.9:
(one case)
7. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Subdivision (d)(1) of Government Code Section 54956.9
City of Los Angeles v. Underwriters at Lloyds, et al.
Los Angeles Superior Court Case No. BC588876
8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect Fenix Marine Services, Ltd., Permit 733:
Property: 614 Terminal Way, San Pedro
City Negotiator: Marisa Katnich
Tenant Negotiator: Steven Trombley
Negotiating Parties: City and Fenix Marine Services, Ltd.
Under Negotiation: Price and Terms
9. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Trapac, LLC, Permit 881:
Property: 630 West Harry Bridges Blvd., Wilmington
City Negotiator: Marisa Katnich
Tenant Negotiator: Ron Triemstra
Negotiating Parties: City and Trapac, LLC
Under Negotiation: Price and Terms
L. Adjournment