Board Meetings | Regular Agenda - August 8, 2024 | Commission (2024)

1. RESOLUTION NO. ____________ - FIRST AMENDMENT TO AGREEMENT NO. 22-9849 WITH THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY FOR A DIESEL EMISSION REDUCTION ACT GRANT TO FUND THE ZERO EMISSION SWITCHER LOCOMOTIVE PROJECT

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: 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.

: 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.____________.

2. RESOLUTION NO. ____________ - FIRST AMENDMENT TO AGREEMENT NO. 22-9850 WITH UNION PACIFIC RAILROAD COMPANY FOR A DIESEL EMISSION REDUCTION ACT GRANT TO FUND A ZERO EMISSION SWITCHER LOCOMOTIVE PROJECT

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: 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.

: 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.___________.

3. RESOLUTION NO. ____________ - APPROVAL OF EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND BELLWETHER FINANCIAL GROUP

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: 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.

: 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.____________.

4. RESOLUTION NO. ____________ - APPROVAL OF FOREIGN-TRADE ZONE (FTZ) OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND HARMONI INTERNATIONAL SPICE, LP FTZ 202, SITE 71

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: 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).

: 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.____________.

5. RESOLUTION NO. ____________ - APPROVAL OF FOREIGN-TRADE ZONE (FTZ) OPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND H. RAUVEL, INC., DBA NOVA CONTAINER FREIGHT STATION, FTZ 202, SITE 36

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: 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).

: 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.____________.

6. RESOLUTION NO. _________________ - APPROVAL OF A RESOLUTION AUTHORIZING THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS APPROVING THE PRINCIPAL FINANCING DOCUMENTS RELATING TO THE ISSUANCE OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT 2024 REFUNDING REVENUE BONDS

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: 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.

: 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.____________.

7. RESOLUTION NO. ____________ - AUTHORIZING THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS TO APPROVE A CASH DEFEASANCE OF THE CITY OF LOS ANGELES HARBOR DEPARTMENT 2015 SERIES A (NON-AMT) AND 2016 SERIES B (NON-AMT) AND SERIES C (NON-AMT) (GREEN) REFUNDING REVENUE BONDS

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: 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.

: 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.____________.