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, AUGUST 8, 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 25, 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
- Audit Committee Meeting of July 25, 2024
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Consent Items (1 – 5)
Environmental Management
Summary: Staff requests approval of the First Amendment to the United States Environmental Protection Agency (EPA) Diesel Emission Reduction Act (DERA) Grant Agreement No. 98T27801 (City of Los Angeles Harbor Department Agreement No. 22-9849) to fund the Zero-Emissions Switcher Locomotive Project (Project) with Project partner Union Pacific Railroad Company (UP). The proposed First Amendment updates the Project schedule and milestones and extends the term of the Agreement by two years to account for delays in the Project timeline due to disruptions in the battery supply chain. All other terms and conditions remain the same, including the overall Project costs and participant commitments. On January 4, 2021, the Board of Harbor Commissioners (Board) accepted EPA DERA Grant Agreement No. 98T27801 awarding $2,025,000 for Project expenditures and administrative costs. Under the terms of the Grant Agreement, the City of Los Angeles Harbor Department (Harbor Department) is responsible for the administrative management of the Project. UP is financially responsible for all other Project costs. The Harbor Department is not required to commit any funding to the Project beyond staff time and resources to act as Grant Manager.
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 First Amendment to Agreement No. 22-9849 between the Harbor Department and the EPA; (3) authorize the Executive Director to execute and the Board Secretary to attest to said Amendment with the EPA for and on behalf of the Board; and (4) adopt Resolution No.____________.
Environmental Management
Summary: Staff requests approval of the First Amendment to Agreement No. 22-9850 (Agreement) with Union Pacific Railroad Company (UP). The Agreement requires UP to design and manufacture a Zero-Emissions Switcher Locomotive for a demonstration project (Project). The Environmental Protection Agency (EPA) Grant Agreement No. 22-9849 between the United States Environmental Protection Agency (EPA) and the City of Los Angeles Harbor Department (Harbor Department) is being amended under a separate board action. The First Amendment to the Agreement with UP will incorporate the same change as the EPA Grant Agreement which is extending the term of the Agreement by two years. The extension request is necessary to account for delays in the project schedule due to disruptions to the battery supply chain. All other terms and conditions of the Agreement remain the same, including the overall project costs and participant commitments.
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 First Amendment to Agreement No. 22-9850 between the Harbor Department and UP to extend the term of the Agreement by two years; (3) direct the Board Secretary to transmit the First Amendment to the City Council for approval pursuant to City Charter Section 373; (4) authorize the Executive Director to execute and the Board Secretary to attest to said Amendment with the EPA for and on behalf of the Board; and (5) adopt Resolution No.___________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval to enter into an Exclusive Negotiating Agreement (ENA) with Bellwether Financial Group (Bellwether) to exclusively negotiate a long-term lease with the City of Los Angeles Harbor Department (Harbor Department) for the development of a boatyard (Project) at Berth 44 (Development Site) with a six-month initial term and three separate six-month renewal options, at the Executive Director’s discretion, for a total duration not to exceed two years from the effective date. Approval of the proposed ENA will not have a financial impact on the Harbor Department as any long-term lease negotiated under the ENA would require approval by the Board of Harbor Commissioners (Board) under a separate action.
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 Successor ENA with Bellwether; (3) authorize the Executive Director to execute and the Board Secretary to attest to the Agreement for and on behalf of the Board; and (4) adopt Resolution No.____________.
Cargo Marketing
Summary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and Harmoni International Spice, LP (Harmoni), to operate its facility within FTZ No. 202, Site 71, located at 881 S. Azusa Ave., City of Industry, CA 91748. Site 71 consists of 3.36 acres of handling, storing, and distribution space for general merchandise within three warehouse facilities located in the City of Industry, California. Harmoni will operate its facility under the FTZ procedures as a multi-usage site. The proposed agreement is for a term of five years with three, five-year renewal options. If the proposed Agreement is approved, the Harbor Department will receive $7,750 annually from Harmoni (per FTZ Tariff No. 2).
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 Foreign-Trade Zone Operating Agreement between the Harbor Department and Harmoni International Spice, LP; (3) direct the Board Secretary to transmit the proposed 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; (4) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Foreign-Trade Zone Operating Agreement; and (5) adopt Resolution No.____________.
Cargo Marketing
Summary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement between the City of Los Angeles Harbor Department (Harbor Department) and H. Rauvel, Inc., dba Nova Container Freight Station (Nova), to operate its facility within FTZ No. 202, Site 36, located at 1710 East Sepulveda Blvd., Carson, CA 90745. Site 36 consists of 0.85 acres of storage facilities and office space located in Carson, California. Nova will operate its facility under the FTZ procedures as a multi-usage site.The proposed agreement is for a term of five years with three, five-year renewal options. If the proposed Agreement is approved, the Harbor Department will receive $7,750 annually from Nova (per FTZ Tariff No. 2).
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 Foreign-Trade Zone Operating Agreement between the Harbor Department and H. Rauvel, Inc., dba Nova Container Freight Station; (3) direct the Board Secretary to transmit the proposed 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; (4) authorize the Executive Director to execute and the Board Secretary to attest to the proposed Foreign-Trade Zone Operating Agreement; and (5) adopt Resolution No.____________.
Regular Items (6 & 7)
Debt & Financial Analysis
Summary: Staff requests adoption of the Resolution authorizing approval of the principal financing documents in relation to the issuance of 2024 Refunding Revenue Bonds that will refund (i.e. refinance) all or a portion of the City of Los Angeles Harbor Department's (Harbor Department) 2014 Series A, B and C Bonds (the 2014 Bonds) which are currently outstanding in the principal amount of $264,695,000. On July 25, 2024, the Board of Harbor Commissioners (Board) approved the issuance of 2024 Refunding Revenue Bonds to refund the 2014 Bonds. On July 25, 2024, the Board also approved the appointment of three investment banks: Jefferies LLC as senior manager, and Samuel A. Ramirez & Company, Inc., a Minority Business Enterprise (MBE), and Loop Capital Markets LLC, an MBE, as co-managers to this transaction. The 2024 Refunding transaction will not result in additional debt or change the maturity of these bonds, but will replace higher interest rate debt with lower interest rate debt reducing the future debt service payment obligations for the Harbor Department.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II, Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the principal financing documents related to the 2024 Refunding Revenue Bonds, which include the Resolution, Indenture of Trust, Continuing Disclosure Certificate, Bond Purchase Agreement, the Preliminary Official Statement, the TEFRA (Tax Equity and Fiscal Responsibility Act) Document, the Independent Green Bond Certification, and the Escrow Agreement; (3) find that the Harbor Department published a TEFRA Notice on July 26, 2024 and held a TEFRA Hearing at 10:00 AM on August 5, 2024. Pursuant to Section 147(f) of the Internal Revenue Code of 1986, there must be a Public Hearing for the financing or refinancing of Capital Improvement Program (CIP) projects with proceeds from the sale of tax-exempt obligations; and (4) adopt Resolution No.____________.
Debt & Financial Analysis
Summary: Staff requests adoption of a Resolution authorizing the cash defeasance of the 2015 Series A ($7,395,000), 2016 Series B ($60,750,000) and 2016 Series C ($35,205,000) Refunding Revenue Bonds (Series 2015 & 2016 Bonds) with a total outstanding balance of up to $103,350,000. The proposed defeasance will be executed after August 1, 2024 with available funds from the Harbor Revenue Fund in an amount not-to-exceed $94,000,000. Approval of the proposed cash defeasance of the Series 2015 & 2016 Bonds will result in interest savings of $35,545,850 on the Harbor Department’s (Department) outstanding debt over a 15-year period through August 2039.
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 cash defeasance of some or all of the 2015 Series A and 2016 Series B and Series C Refunding Revenue Bonds with funds from the Harbor Revenue Fund and other funds available under the respective bond indentures; (3) authorize the redemption of the 2015 Series A and 2016 Series B and Series C Refunding Revenue Bonds that are subject to redemption; (4) approve the Escrow Agreements related to the cash defeasance of the 2015 Series A and 2016 Series B and Series C Refunding Revenue Bonds in the form presented to the Board with such changes as are approved by the officer executing the final versions of such agreements; (5) ratify actions taken by officers, employees, and agents of the Harbor Department prior to the date the Resolution becomes final; and (6) 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)
Environmental California, Inc. v. City of Los Angeles; et al.
United States District Court Case No. 2:24-cv-06154
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
10. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to a proposed permit with Yusen Terminals LLC:
Property: 701 New Dock Street, Terminal Island
City Negotiators: Michael DiBernardo/Marisa Katnich
Tenant Negotiator: Alan McCorkle
Negotiating Parties: City and Yusen Terminals LLC
Under Negotiation: Price and Terms
L. Adjournment