Los Angeles — 2025-02-27

1. CONFERENCE WITH LEGAL COUNSEL – SIGNIFICANT EXPOSURE\nTO LITIGATION\n(Subdivision (d)(2) of Government Code Section 54956.9)\nSignificant exposure to litigation pursuant to subdivision (d)(2) of Section 54956.9:\n(one case)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS\n(Government Code Section 54956.8)\nProvide instructions to its real estate negotiators with respect to Avocet Energy\nStorage LLC:\nProperty: 2401 E. Sepulveda Blvd., Long Beach\nCity Negotiator: Marisa Katnich\nTenant Negotiator: John Meinecke\nNegotiating Parties: City and Avocet Energy Storage, LLC\nUnder Negotiation: Price and Terms

3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS\n(Government Code Section 54956.8)\nProvide instructions to its real estate negotiators with respect to Trapac, LLC:\nProperty: 630 West Harry Bridges Blvd., Wilmington\nCity Negotiator: Marisa Katnich\nTenant Negotiator: Cameron Thorpe\nNegotiating Parties: City and Trapac, LLC\nUnder Negotiation: Price and Terms

4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS\n(Government Code Section 54956.8)\nProvide instructions to its real estate negotiators with respect to Fenix Marine\nServices, Ltd.:\nProperty: 614 Terminal Way, San Pedro\nCity Negotiator: Marisa Katnich\nTenant Negotiator: Steven Trombley\nNegotiating Parties: City and Fenix Marine Services, Ltd.\nUnder Negotiation: Price and Terms

5. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION\n(Subdivision (d)(1) of Government Code Section 54956.9)\nEnvironmental California, Inc. v. City of Los Angeles; et al.\nUnited States District Court Case No. 2:24-cv-06154

1. RESOLUTION NO. __________ - APPROVAL OF FOREIGN-TRADE ZONE (FTZ)\nOPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR\nDEPARTMENT AND CEVA FREIGHT, LLC, FTZ 202, SITE 30\nTransmittal 1\nTransmittal 2\nTransmittal 3\nSummary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement\nbetween the City of Los Angeles Harbor Department (Harbor Department) and Ceva Freight,\nLLC (Ceva), to operate its facility within FTZ No. 202, Site 30, located at 19600 Western Ave,\nTorrance, CA 90501. Site 30 consists of 305,000 square feet of warehouse and 22,000\nsquare feet of office space on 7.1 acres located in Torrance, California. Ceva will operate its\nfacility under the FTZ procedures as a multi-usage site. The proposed agreement is for a term\nof five years with three, five-year renewal options. If the proposed Agreement is approved, the\nHarbor Department will receive $7,750 annually from Ceva (per FTZ Tariff No. 2).\nRecommendation: Board resolve to (1) find that the Director of Environmental Management\nhas determined that the proposed action is administratively exempt from the requirements of\nthe California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los\nAngeles City CEQA Guidelines; (2) approve the proposed Foreign-Trade Zone Operating\nAgreement between the Harbor Department and Ceva; (3) authorize the Executive Director to\nexecute and the Board Secretary to attest to the proposed Foreign-Trade Zone Operating\nAgreement; and (4) adopt Resolution No.________.\nCargo Marketing

2. RESOLUTION NO. __________ - APPROVAL OF FOREIGN-TRADE ZONE (FTZ)\nOPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR\nDEPARTMENT AND HOWARD HARTRY INC., FTZ 202, SITE 27\nTransmittal 1\nTransmittal 2\nTransmittal 3\nSummary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement\n(Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and\nHoward Hartry Inc. (HHI), to operate its facility within FTZ No. 202, Site 27, located at 202\nNorth Fries Ave., Wilmington, CA 90744. Site 27 consists of 11,800 square feet of warehouse\nand office space on 0.25 acres located adjacent to the Port of Los Angeles. HHI will operate\nits warehouse under FTZ procedures as a multi-usage site. The proposed Agreement is for a\nterm of five years with three, five-year renewal options. If the proposed agreement is\napproved, the Harbor Department will receive $7,750 annually from HHI (per FTZ Tariff No.\n2).\nRecommendation: Board resolve to (1) find that the Director of Environmental Management\nhas determined that the proposed action is administratively exempt from the requirements of\nthe California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los\nAngeles City CEQA Guidelines; (2) approve the proposed Foreign-Trade Zone Operating\nAgreement between the City of Los Angeles Harbor Department and Howard Hartry Inc.; (3)\nauthorize the Executive Director to execute and the Board Secretary to attest to the proposed\nForeign-Trade Zone Operating Agreement; and (4) adopt Resolution No.________.\nWaterfront and Commercial Real Estate

3. RESOLUTION NO. __________ - SECOND TEMPORARY ORDER AMENDING THE\nPORT OF LOS ANGELES TARIFF NO. 4, SECTION THIRTEEN – PARKING CHARGES,\nITEM NO. 1300\nTransmittal 1\nTransmittal 2\nSummary: Staff requests approval of a second Temporary Order approving an amendment to\nPort of Los Angeles Tariff No. 4 (Tariff No. 4) Section Thirteen – Parking Charges, Item 1300\n(a), to increase parking rates effective January 1, 2025, and January 1, 2026 (Amendment).\nThe proposed Amendment provides for a $2, or 10 percent, increase in the maximum daily\nrate at the World Cruise Center for regular-sized vehicles from $20 to $22, effective January\n1, 2025, and an additional $2, or 9.1 percent, increase from $22 to $24, effective January 1,\n2026. Parking for the first hour will continue to remain free of charge, with each subsequent\nhour continuing to be charged two dollars until the maximum daily rate is achieved. At the\nNovember 7, 2024, Board of Harbor Commissioners (Board) meeting, the Board approved\nTemporary and Permanent Orders amending section Tariff No. 4 increasing parking rates,\neffective January 1, 2025, and January 1, 2026. Changes in the Tariff require City Council\napproval. Los Angeles City Council (City Council) has not approved the Permanent Order and\nOrdinance. The first Temporary order will expire March 31, 2024; therefore, a second\nTemporary Order is proposed to allow additional time for the Permanent Order to be\nconsidered by the City Council. This second Temporary Order, if approved, will be effective\nApril 1, 2025, and expire 90 days after the effective date or upon execution of the Permanent\nOrder by the City Council, whichever occurs first.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management\nhas determined that the proposed action is categorically exempt from the requirements of the\nCalifornia Environmental Quality Act (CEQA) under Article III Class 1(31) of the Los Angeles\nCity CEQA Guidelines; (2) approve the Amendment to Port of Los Angeles Tariff No. 4,\nSection Thirteen - Parking Charges, Item No. 1300 (a), subject to the California Association of\nPort Authorities’ review and approval, and authorize the Executive Director to work with\nCalifornia Association of Port Authorities to secure this approval or proceed to take\nindependent action in accordance with California Association of Port Authorities procedure;\n(3) adopt second Temporary Order No. ________ to amend Port of Los Angeles Tariff No. 4,\nto modify parking rates in Section Thirteen – Parking Charges, Item No. 300 (a); (4) authorize\nthe Board Secretary to certify the adoption of the second Temporary Order by the Board of\nHarbor Commissioners and cause the same to be published once in a newspaper printed and\npublished in the City of Los Angeles, to take effect on April 1, 2025 , for a period not-to\nexceed 90 days pursuant to City Charter Section 653(b), and post the Temporary Order\ncircular to the Port of Los Angeles website; and (5) adopt Resolution No.________.\nPort Police

4. RESOLUTION NO. __________ - AGREEMENT BETWEEN THE CITY OF LOS\nANGELES HARBOR DEPARTMENT AND MOTOROLA SOLUTIONS, INC. FOR THE\nPURCHASE AND DEPLOYMENT OF A MANAGED DETECTION AND RESPONSE SYSTEM\nTransmittal 1\nTransmittal 2\nSummary: Staff requests approval of an Agreement between the City of Los Angeles Harbor\nDepartment (Harbor Department) and Motorola Solutions, Inc. (Motorola), to purchase and\ndeploy ASTRO Managed Detection and Response (MDR) system which provides 24x7x365\nSecurity Operations Center support for the Los Angeles Port Police (Port Police) systems.\nThe MDR is categorized as a ‘Security-as-a-Service’ offering whereby an organization\noutsources some of its security operations to a third-party provider. It goes beyond simply\ndetecting threats to working to remediate them on an organization’s network. The\nemployment of this system will enhance cyber security monitoring of Port Police systems,\nspecifically, the Computer Aided Dispatch (CAD) and Records Management Systems (RMS),\nland-mobile radio system, and the 9-1-1 computer telephone system. The proposed\nAgreement is for a term of three years and an amount not to exceed $1,177,886.87. Year 1\nwill primarily consist of an assessment of the various networks and solutions for\nvulnerabilities, penetration testing, system monitoring, and staff training. Years 2 and 3 will be\nprimarily monitoring and additional testing, as required, for any system changes. The\nsubscription services will be provided in each of the three contract years. Additionally, this\namount includes contingency funds which are often needed for technology-related projects\nwhich frequently face unforeseen problems. The Harbor Department will be financially\nresponsible for payment of expenses incurred under the proposed Agreement.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management\nhas determined that the proposed action is administratively and categorically exempt from the\nrequirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f)\nand Article III Class 1(6) of the Los Angeles City CEQA Guidelines; (2) find that in accordance\nwith the Los Angeles City Charter Section 1022, the services to be provided herein cannot be\nperformed by Harbor Department personnel or other current City job classifications; (3) find\nthat in accordance with the Los Angeles City Charter Section 1022 and Los Angeles\nAdministrative Code Section 10.15(a)(10) the proprietary nature of the ASTRO technology\nlimits the availability of specialized expertise to only the particular system vendor, and the\ndesire to utilize the same public safety system as the Los Angeles Police Department would\nmake it undesirable or impractical to utilize another system vendor; (4) approve the proposed\nAgreement between the City of Los Angeles Harbor Department and Motorola Solutions, Inc.;\n(5) authorize the Executive Director to execute and the Board Secretary to attest said\nAgreement for and on behalf of the Board; and (6) adopt Resolution No.____________.\nAccounting/Commission Office

5. RESOLUTION NO. ____________ - APPOINTING CHIEF ACCOUNTING\nEMPLOYEE\nRecommendation: Board resolve to (1) adopt Subject Resolution No.________.\nFinancial Planning and Analysis

6. RESOLUTION NO. __________ - REQUEST FOR FY 2024/25 BUDGETARY\nTRANSFER FOR PASSTHROUGH GRANTS\nTransmittal 1\nTransmittal 2\nSummary: Staff requests approval of budgetary transfers in the amount of $42,052,577 to\ncover anticipated budgetary shortfalls within the Non-Operating Expense Budget Category for\npassthrough grants. This budgetary transfer is needed to establish passthrough grant\nbudgets to distribute subrecipient payments in Fiscal Year (FY) 2024/25 for grant awards\nassociated with: 1) Resolution 25-10486 for the Sustainable Equipment Adoption: Community,\nHarbor, and Neighborhood Growth & Empowerment (SEA-CHANGE) Project, funded through\nthe United States Environmental Protection Agency (EPA); and 2) Resolution 25-10485 for\nthe Los Angeles Marine Emission Reduction (LA MER) Project, funded through the California\nAir Resources Board (CARB). The Unappropriated Balance will be utilized for these\nbudgetary transfers, and this proposed transfer will increase the overall FY 2024/25 Non-\nOperating Expense Budget from $32,179,692 to $74,232,269. Staff anticipates that in FY\n2024/25 subrecipients will submit approximately $32.7 million in invoices for reimbursement\nfor the SEA-CHANGE Project, and approximately $9.3 million in invoices for the LA MER\nProject, or approximately $42 million in total for both projects. Payments to grant\nsubrecipients utilizing Non-Operating Expenses for passthrough grants are the financial\nresponsibility of the City of Los Angeles Harbor Department (Harbor Department); however,\npayments will not proceed until after the Harbor Department has first received the associated\npassthrough grant funding from the awarding agencies (CARB and EPA) in accordance with\nthe grant agreements.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management\nhas determined that the proposed action is administratively exempt from the requirements of\nthe California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los\nAngeles City CEQA Guidelines;(2) approve the following budgetary transfers to resolve a\nprojected shortfall in the federal and state/local passthrough grant non-operating expense\naccounts: Transfer $42,052,577 from the Unappropriated Balance, Fund 702: i. $32,726,662\nto Fund 702, Division 00000, Account 702000, and ii. $9,325,915 to Fund 702, Division\n00000, Account 702005; (3) direct the Board Secretary to transmit the Resolution to the\nMayor for approval pursuant to Section 343(b) of the City Charter; (4) direct the Board\nSecretary to notify the City Clerk of such transfer pursuant to Section 343(d) of the City\nCharter at the time such transfer is made; and (5) adopt Resolution No. ________.\nRegular Item (7)\nGoods Movement

7. RESOLUTION NO. __________ - APPROVAL OF FIFTH AMENDMENT TO PACIFIC\nHARBOR LINE, INC. OPERATING AGREEMENT NO. 1989\nTransmittal 1\nTransmittal 2\nSummary: Staff requests approval of the Fifth Amendment to Operating Agreement No. 1989\n(Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and\nPacific Harbor Line, Inc. (PHL), which will extend the term of the Agreement by three years\nfrom December 31, 2025, to December 31, 2028. PHL is a shortline railroad that is the\ncurrent Port of Los Angeles (POLA)-Port of Long Beach (POLB) complex rail operator (PRO).\nThe PRO provides rail services for POLA terminals, which also includes interchanging trains\nwith the BNSF Railway (BNSF) and Union Pacific Railroad (UPRR). The Harbor Department\nand the POLB each have an operating agreement with PHL. The Harbor Department and\nPOLB anticipate releasing a joint request for proposals (RFP) for selecting the next PRO in\nJanuary 2027. The proposed Amendment will enable staff to complete the RFP process prior\nto the amended expiration date of the Agreement. There are no financial impacts to the\nHarbor Department as PHL will continue to pay rent.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management\nhas determined that the proposed action is administratively exempt from the requirements of\nthe California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los\nAngeles City CEQA Guidelines; (2) approve the Fifth Amendment to Agreement No. 1989 with\nPHL to extend the term from its current expiration of December 31, 2025 to December 31,\n2028; (3) direct the Board Secretary to transmit the Resolution and Fifth Amendment to the\nCity Council for approval pursuant to Section 373 of the City Charter and Section 10.5 of the\nCity Administrative Code; and (4) adopt Resolution No. _______.

D. Comment from the Public on Non-Agenda Items

F. Reports of the Commissioners

G. Board Committee Reports\nNone

H. Presentation\n• FTZ Overview

I. Level I Coastal Development Permit\nNone

J. Board Reports of the Executive Director\nConsent Items (1 – 6)\nCargo Marketing

K. Closed Session