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, SEPTEMBER 5, 2024 AT 10:00 AM
Board of Harbor Commissioners
Lucille Roybal-Allard, 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 August 22, 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 – 7)
Construction & Maintenance
Summary: Staff requests approval of Contract No. 40045 (Contract) with A&A Ready Mixed Concrete, Inc. (A&A) of Newport Beach, California, for the purchase of concrete/slurry ready mix. The proposed Contract would be for a one-year term with two one-year renewal options. The amount of this Contract shall not exceed $400,000 for the initial year. If the two renewal options are exercised, $400,000 will be authorized for the second year and $400,000 for the third year. The total amount would not exceed $1,200,000 over the three years. The City of Los Angeles Harbor Department (Harbor Department) will be financially responsible for the payment of costs incurred under the proposed Contract.
Recommendation: Board to resolve (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 Contract No. 400 with A&A in the amount of $400,000 for the concrete/slurry ready mix for a period of one year, with two one-year renewal options in the same amount annually for a total compensation amount not to exceed $1,200,000 if the renewal options are exercised and authorized by the Executive Director or his/her designee; (3) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40045 for and on behalf of the Board; and (4) adopt Resolution No. ____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No. 306 with Ultramar Inc., a wholly owned subsidiary of Valero Energy Corporation, (collectively referred to as Valero), which is currently on month-to-month holdover status. The proposed compensation reset is for the five-year period commencing February 1, 2024, for the use of Berths 163-164 in Wilmington, as a marine oil terminal. Under the proposed action, Valero’s minimum annual land rent will increase by $393,730, or 20.29 percent, from $1,940,351 to $2,334,081 effective February 1, 2024. In addition to the annual minimum land rent, Valero will continue to be financially responsible for payment of all tolls and charges pursuant to Port of Los Angeles Tariff No. 4. The applicable five-year compensation reset was due on February 1, 2024; consequently, Valero has agreed and will be assessed the compensation reset retroactively to February 1, 2024.
Recommendation: Board to resolve (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. 306 with Ultramar Inc.; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 306; and (4) adopt Resolution No. ____________ and Order No. ____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No. 916 with Shell Oil Company (Shell) for the five-year period of March 26, 2024, through March 25, 2029. Permit No. 916 grants Shell the use of Berths 167-169 in Wilmington for the operation of a marine liquid bulk terminal. Under the proposed action, Shell’s minimum annual land rent will increase by $68,437, or 3.57 percent, from $1,918,013 to $1,986,450 effective March 26, 2024. Thereafter, annual rent will increase by the year-over-year change in the Consumer Price Index (CPI). In addition to the annual minimum land rent, Shell will continue to be financially responsible for payment of all tolls and charges pursuant to Port of Los Angeles Tariff No. 4. The applicable five-year compensation reset was due on March 26, 2024; consequently, Shell has agreed and will be assessed the compensation reset retroactively to March 26, 2024.
Recommendation: Board to resolve (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. 916 with Shell Oil Company; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 916; and (4) adopt Resolution No. ____________ and Order No. ____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No.936 with PBF Energy Western Region LLC, a wholly owned subsidiary of PBF Energy (collectively referred to as “PBF”). The proposed compensation reset is for the five-year period commencing July 1, 2024, for the use of Berths 238-239 in Terminal Island, as a marine oil terminal. Under the proposed action, PBF’s minimum annual land rent will increase by $491,996, or 6.75 percent, from $7,291,644 to $7,783,640 effective July 1, 2024. Thereafter, annual rent will increase by the year-over-year change in the Consumer Price Index (CPI). In addition to the annual minimum land rent, PBF will continue to be financially responsible for payment of all tolls and charges pursuant to Port of Los Angeles Tariff No. 4. The applicable five-year compensation reset was due on July 1, 2024; consequently, PBF has agreed and will be assessed the compensation reset retroactively to July 1, 2024.
Recommendation: Board to resolve (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. 936 with PBF Energy Western Region LLC; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 936; and (4) adopt Resolution No. ____________ and Order No. ____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Orders resetting compensation under Permit Nos. 712 and 713 with Shore Terminals LLC, a wholly owned subsidiary of NuStar Energy L.P. (collectively referred to as “NuStar”), which are currently in month-to-month holdover status. The proposed compensation reset is for the five-year period of June 25, 2024 through June 24, 2029. Under the proposed compensation reset Orders, the annual minimum land rent will be adjusted by $326,448, or 20.19 percent, from $1,616,690 to $1,943,138 effective June 25, 2024. In addition to the annual minimum land rent, NuStar will continue to pay all tolls and charges pursuant to Port of Los Angeles Tariff No. 4. The applicable five-year compensation reset was due on June 25, 2024; consequently, NuStar has agreed and will be assessed the compensation reset retroactively to June 25, 2024.
Recommendation: Board to resolve (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 Guideline; (2) approve the Orders resetting compensation under Permit Nos. 712 and 713 with Shore Terminals LLC; (3) authorize the Board Secretary to attest to the Orders resetting compensation under Permit Nos. 712 and 713; and (4) adopt Resolution No. ____________ and Order Nos. ____________.
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Order resetting compensation under Permit No. 708 granted to Kinder Morgan Tank Storage Terminals, LLC (Kinder), formerly GATX Tank Storage Terminals Corporation (GATX), for the use of 13.46 acres of Los Angeles Harbor Department (Harbor Department) land and wharf located at Berths 118-119. The proposed compensation reset is for the five-year period of April 14, 2023, through April 13, 2028. Under the proposed compensation reset Order, the annual minimum land rent will be adjusted commencing April 14, 2023, through April 13, 2028, to $2,188,252.50 (payable quarterly in an amount of $547,063.13). The annual minimum land rent is based on waterfront land value of $50.00/sf with a 10 percent rate of return based on the Harbor Department’s rate of return policy for unimproved land. Additionally, a 50 percent discount for subsurface lands is applied to any subsurface parcels. In addition to the annual minimum land rent, Kinder will continue to pay all tolls and charges pursuant to Port of Los Angeles Tariff No. 4. The applicable five-year compensation reset was due on February 1, 2024, consequently, Kinder has agreed and will be assessed the compensation reset retroactively to April 14, 2023.
Recommendation: Board to resolve (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. 708 with Kinder Morgan Tank Storage Terminals, LLC; (3) authorize the Board Secretary to attest to the Order resetting compensation under Permit No. 708; and (4) adopt Resolution No. ____________ and Order No. ___________.
Information Technology
Summary: Staff requests approval to enter into Agreements with Birdi Systems, Inc. (Birdi), Burns Engineering, Inc. (Burns), Infojini Inc. (Infojini), Satwic Inc. (Satwic), and Sierra Cybernetics, Incorporated (Sierra), for Information Technology (IT) services on an on-call, as-needed basis. The on-call, as-needed services may include support for on-going IT operations, including helpdesk, end user support, data center, servers, storage, network, cyber security, software applications, emerging technologies and other IT related services. The authority amount will be a maximum pool of $6,000,000 for all agreements, for a term of three years. The recommendation to select Birdi, Burns, Infojini, Satwic, and Sierra, is based on the competitive Request for Proposals (RFP) process performed by the City of Los Angeles Harbor Department (Harbor Department). Three of the five selected consultant firms are certified Small Business Enterprises (SBEs), and three firms qualify as Local Business Enterprises (LBEs). The Harbor Department will be financially responsible for payment of expenses incurred under the proposed Agreements.
Recommendation: Board to resolve (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 the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform the proposed services rather than City employees; (3) approve the Agreements with Birdi Systems, Inc., Burns Engineering, Inc., Infojini Inc., Satwic Inc., and Sierra Cybernetics, Incorporated to support information technology operations on an on-call, as-needed basis for a three-year term; (4) authorize the Executive Director to execute and the Board Secretary to attest said Agreements for and on behalf of the Board; and (5) adopt Resolution No. ____________.
Regular Item Nos. (8 – 10)
Construction & Maintenance
Summary: Staff requests approval of Contract No. 40052 (Contract) with Haaker Equipment Company (Haaker) of La Verne, California, for the one-time purchase of one Elgin Broom Bear All Electric EV Street Sweeper (EV Sweeper) to replace an existing compressed natural gas (CNG) powered sweeper. The cost of the EV Sweeper is $956,612.50 including sales tax, delivery and training. The price is based on the Sourcewell Cooperative Purchasing Agreement – Contract # 093021-ELG, between Sourcewell and Elgin Sweeper Company. The EV Sweeper is eligible for the California State’s zero-emission (ZE) vehicle incentive funding through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) and if awarded, could offset the total cost by up to $150,000. The City of Los Angeles Harbor Department (Harbor Department) will be financially responsible for the payment of expenditures incurred under the proposed Contract, with the potential offset of up to $150,000.
Recommendation: Board to resolve (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 Contract No. 40052 with Haaker for the purchase of the EV Sweeper; (3) authorize the Executive Director or his designee to execute an HVIP Voucher Request Form and HVIP Voucher Redemption Form to receive HVIP funding towards the purchase of the EV Sweeper; (4) authorize the Executive Director to execute and the Board Secretary to attest to Contract No. 40052 for and on behalf of the Board; and (5) adopt Resolution No. ____________.
Cargo & Industrial Real Estate
Summary: Staff requests approval of the Twelfth Amendment (Amendment) to Permit No. 733 (Permit) with Fenix Marine Services, Ltd. (FMS) which is necessary for the City of Los Angeles Harbor Department (Harbor Department) to undertake construction of the Berths 302-305 On-Dock Rail Yard Expansion Project (Project). The proposed Project will add five loading/unloading tracks to the FMS terminal located at Pier 300, which will increase on-dock railyard capacity and enable more cargo to be loaded onto trains via the on-dock railyard within the terminal. The Project cost is $51,900,000 of which, $37,378,743 will be funded through State and Federal grants secured by the Harbor Department. The Amendment makes the following notable changes to the Permit: 1) defines the Project scope; 2) temporarily removes approximately 23 acres of the premises for the duration of the 24-month construction period and provides substitute premises adjacent to the terminal; 3) modifies rent provisions and adds potential rent credits and damages clauses, all related to the Project; 4) increases the premises size from 292 acres to 302 acres at Project completion; 5) designates the rail added under the Project as a new parcel at a new fixed rate; and 6) adds Project-specific indemnity provisions. The Harbor Department will be financially responsible for potentially $27,551,257 in costs, summarized as follows: payment of the $14,521,257 in remaining costs related to the Project; providing rent credits in the amount of $10,230,000; providing an additional rent credit not-to-exceed $1,000,000 arising from increased FMS operating costs during construction; as well as for payment of liquidated damages not-to-exceed $1,800,000 to FMS resulting from Project construction delays.
Recommendation: Board to resolve (1) find that the Director of Environmental Management has determined that the proposed action has been previously evaluated pursuant to the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(i) of the Los Angeles City CEQA Guidelines; (2) approve the Twelfth Amendment to Permit No. 733 with Fenix Marine Services, Ltd.; (3) direct the Board Secretary to transmit the Twelfth Amendment to Permit No. 733 to City Council for approval pursuant to Charter Section 606 of the City Charter; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Twelfth Amendment upon approval by City Council; and (5) adopt Resolution No. ___________.
Cargo Marketing
Summary: Staff requests approval of a second Temporary Order to amend Port of Los Angeles Tariff No. 4 (Tariff), effective September 29, 2024, which would implement a 3.6 percent General Rates Increase (GRI), applicable to Tariff No. 4 rated tariff items, excluding rated tariff items that currently have a scheduled rate increase. This second Temporary Order is being proposed within the Board of Harbor Commissioners’ (Board) authority to adopt rates for up to 90 days. At the June 6, 2024 Board meeting, the Board approved Temporary and Permanent Orders amending various sections of Tariff No. 4 increasing rated tariff items by 3.6 percent. Changes in the Tariff require City Council approval. The City Council has not calendared and approved the Permanent Order and Ordinance. The first Temporary Order will expire on September 28, 2024; therefore, a second Temporary Order is proposed to allow additional time for the Permanent Order to pass through the City Council approval process. This second Temporary Order, if approved, will expire in 90 days after the day it is published or upon execution of the Permanent Order by the City Council, whichever occurs first.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III Class 1(31) of the Los Angeles City CEQA Guidelines; (2) adopt second Temporary Order No. ____________ with an effective date of September 29, 2024, to amend Port of Los Angeles Tariff No. 4, increasing rates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Seven ”Free Time, Wharf Demurrage, and Wharf Storage”, Items 780 and 790; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises”, Item 1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930; (3) authorize the Board Secretary to certify the adoption of second Temporary Order by the Board of Harbor Commissioners and cause the same to be published once in a newspaper printed and published in the City of Los Angeles, to take effect on September 29, 2024, for a period not-to-exceed 90 days pursuant to City Charter Section 653(b); 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 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
8. 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