0150-11094-0001TRANSMITTAL

TO COUNCIL FILE NO.DATEEugene D. Seroka, Executive Director Harbor Department MAR 11 2019

FROMThe Mayor

COUNCIL DISTRICT15

PROPOSED SUB-LICENSE AGREEMENT WITH THE MARINE EXCHANGE OF LOS ANGELES/LONG BEACH HARBOR INCORPORATED, FOR

THE PORT POLICE RADIO SYSTEM REBANDING PROJECT, PHASE I

Transmitted for further processing and Council consideration. See the City Administraj*v0Officer report attached.

IAYOR

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CAO 649-d

REPORT from

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

March 1, 2019Date: CAO File No. Council File No. Council District: 15

0150-11094-00001

The MayorTo:

From: Richard H. Llewellyn, Jr., Uty Administrative Officer

Correspondence from the Harbor Department dated-Jai the Mayor for report dated February 8, 2019 V__

nuiry 22, 2019; referred byReference:

PROPOSED SUB-LICENSE AGREEMENT WITH THE MARINE EXCHANGE OF LOS ANGELES/LONG BEACH HARBOR INCORPORATED, FOR THE PORT POLICE RADIO SYSTEM REBANDING PROJECT, PHASE I

Subject:

RECOMMENDATIONS

That the Mayor:

1. Approve Harbor Department (Port) Resolution No. 19-8411 authorizing a Sub-License Agreement with The Marine Exchange of Los Angeles/Long Beach Harbor Inc., for the Port Police Radio System Re-banding Project, Phase I; and.

2. Return the document to the Port for further processing, including Council consideration.

SUMMARY

The Harbor Department (Port) Board of Harbor Commissioners (Board) requests approval of Resolution No. 19-8411 to authorize a proposed Sub-License Agreement (Agreement) with The Marine Exchange of Los Angeles/Long Beach Harbor Inc. (Marine Exchange), for the Port Police Radio System Re-banding Project, Phase I. The proposed Agreement will authorize the Port to use a portion of the property owned by Marine Exchange in San Pedro, CA. to install, maintain and operate Phase I of the Los Angeles Port Police (Port Police) Radio System Re-banding Project (Phase I Radio Project). Marine Exchange is offering the property to the Port rent-free under the terms of the Agreement. However, the Port will be financially responsible for all costs to construct the radio infrastructure and any incremental utility costs associated with the ongoing operation of the radio project. The Port states that the Phase I Radio Project is currently estimated to cost a total of $1,202,310 and ongoing utility costs are estimated at approximately $1,000 per year.

The Port Police is in need of the Marine Exchange property because of a federal government requirement for ports to comply with a federal provision called the Middle Class Tax Relief and Jobs Creation Act of 2012, and also known as the Public Safety and Spectrum Act (Spectrum Act). The Spectrum Act requires that the existing Port Police radio system frequencies be expanded from 400 Megahertz (MHz) to a new radio system with frequencies of 700 MHz by February 2021.

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The Port states that in complying with both the Spectrum Act and Federal Communication Commission (FCC) requirements, the POLA will have to implement a Project for re-banding of the radio systems. The radio frequency or wireless spectrum refers to the properties in air that transmit air electric signals and can deliver voice, text, and video communications. The mandated Spectrum Act requirements provides a qualitative growth in radio frequency systems and deliver higher speeds in communication systems to consumers and businesses. The FCC manages, allocates and assigns radio frequency spectrum or communications for commercial and government uses.

The Port states that to comply with the FCC and Spectrum Act requirements, the POLA proposes to upgrade and complete its radio system project in two phases. The Phase I Radio Project includes the following: complying with FCC requirements; implementing conditions and equipment needed for the new 700 MHz frequencies; expanding the desirable radio coverage area; leasing the property site; and developing, installing, and operating the Port Police radio system project. The Phase II sites and project operations are still under consideration by Port staff.

Phase I will be located at 3601 S. Gaffey Street at the United States Coast Guard (USCG) San Pedro facility. The Marine Exchange leased the property from its owner, the United States Coast Guard (USCG), under a master license agreement, which expires in October 2025. According to the Port, this site currently houses the Port Police microwave network equipment located in the Marine Exchange building and is considered a superior area for radio coverage. The proposed Project will consist of a 100-foot radio tower, communication and equipment shelter, and solar panel devices on the property. The proposed location for the radio tower and equipment shelter will not impact the operations and current or future uses by the Marine Exchange and USCG. The Port costs will be for the construction, operation, maintenance, repairs, electricity, data lines or other expenses of the Project. There will be no costs to the Marine Exchange or USCG.

The Marine Exchange is a private, non-profit organization dedicated to the development and efficient flow of maritime commerce, safety and environmental transportation systems and services. The Marine Exchange, in partnership with USCG, is the leading provider of vessel traffic and maritime related information and services throughout the region. The Marine Exchange maintains a continuous 24-hour service, using a state-of-the-art computerized database system to provide vital statistics and information on ships at major ports in Southern California.

In September 2018, the Marine Exchange and USCG approved this sub-lease Agreement through a Letter of Authorization, after USCG conducted its own environmental review of the Port’s Phase I Radio Project. The Port states that the Agreement will run concurrently with the master Marine Exchange license agreement, expiring in 2025. The Port anticipates that the Maritime Exchange and proposed Project are critical to maritime operations and will be in service beyond the expiration of the Agreement. The proposed Agreement begins on the effective date of approval and execution.

The proposed Agreement has been approved by the City Attorney as to form and legality. The proposed Agreement is in compliance with applicable City provisions and ordinances. The Port has determined that the proposed actions include a Sub-License Agreement for the lease of property with the Marine Exchange and are therefore exempt from the requirements of the California Environmental Quality Act (CEQA) and Los Angeles City CEQA Guidelines.

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FISCAL IMPACT STATEMENT

The Harbor Department (Port) is requesting a Sub-Lease Agreement with the Marine Exchange to lease property for Phase I of the Port Police Radio System Project (Radio System Project). The Port will use the property rent-free until 2025, but will be financially responsible to pay to construct, install, maintain and operate the site improvements and utility costs associated with the Radio System Project. The Port states that the Phase I Radio Project is currently estimated to cost $1,202,310 and ongoing utility costs are estimated at approximately $1,000 per year. There is no impact to the City General Fund and funding for the Agreement will be included in the Port’s ten- year Capital Program and annual appropriation of funds.

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