PUBLIC NOTICES
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Port of San Diego
PUBLISHED: Wednesday April 17, 2013

SAN DIEGO UNIFIED PORT DISTRICT
 
ORDINANCE 2709
 
ORDINANCE GRANTING AMENDED, RESTATED, AND COMBINED LEASE
WITH PACIFIC TUGBOAT SERVICE EXTENDING LEASE TERM FOR
14-YEARS, 8-MONTHS, TERMINATING ON DECEMBER 31, 2027, FOR
LEASEHOLD IMPROVMENTS AND SHORE POWER, LOCATED AT THE FOOT OF CESAR E. CHAVEZ PARKWAY IN SAN DIEGO

 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
 
WHEREAS, Section 87(b) of the Port Act grants authority to the District to lease the tidelands or submerged lands, or parts thereof, for limited periods, not exceeding 66 years, for purposes consistent with the trusts upon which those lands are held, by the State of California; and
 
WHEREAS, Pacific Maritime Freight, Inc. dba Pacific Tugboat Service (PTS) has operated tugboat, barge and marine services at the foot of Cesar E. Chavez pier under its current Lease with the District since 2005, on file with the Office of the District Clerk as Document No 48297; and
 
WHEREAS, the District granted an amendment to the Lease in 2009, to allow PTS to make a $2,000,000 capital investment, including leasehold improvements to its office, pier, parking and landscaping on file with the Office of the District Clerk as Document No. 54511; and
 
WHEREAS, in 2011, PTS approached the District with modifications to the project; and
 
WHEREAS, the revised project and improvements completed to date entitle PTS to a 14-year, 8-month lease term extension; and
 
WHEREAS, the proposed Amended, Restated, and Combined (ARC) Lease has updated terms and the most recent lease language; and
 
WHEREAS, the proposed ARC Lease with PTS extends the existing initial lease term, expiring January 1 2015, for 14-years, 8-months, expiring December 31, 2027, for the capital investment of $1,400,000 for the improvements to their leasehold including construction of a new parking lot, new fencing, new landscaping and water quality improvements, and upgrade of electrical service to shore power vessels; and
 
WHEREAS, the ARC Lease proposes a construction flat rent of $48,000 per year through June 30, 2013, while PTS finishes any remaining work on the land side improvements; and
 
WHEREAS, the flat rent would increase to $75,000 on July 1, 2013 through January 31, 2014 with annual Consumer Price Index (CPI) adjustments commencing on February 1, 2014.
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.   That the Amended, Restated and Combined Lease between the San Diego Unified Port District and Pacific Maritime Freight, Inc. dba Pacific Tugboat Service, for 14-years, 8-months until December 31, 2027; updating the lease provisions and combining all amendments into one lease for property located at 1444 Cesar E. Chavez Parkway, in the City of San Diego, is hereby approved and granted.
 
Section 2.   The Executive Director or his designated representative is hereby directed to execute the said Amended, Restated and Combined Lease with Pacific Maritime Freight, Inc. dba Pacific Tugboat Service on behalf of the San Diego Unified Port District.
 
Section 3.   This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Malcolm, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. Apr 17-00109753

SAN DIEGO UNIFIED PORT DISTRICT 
 
ORDINANCE 2710
 
ORDINANCE GRANTING TWO 10-YEAR TIDELAND USE AND OCCUPANCY PERMITS WITH TWO 5-YEAR OPTIONS WITH VERIZON WIRELESS, LLC FOR TELECOMMUNICATION SITES ON HARBOR DRIVE AND SHELTER ISLAND
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
 
     WHEREAS, Section 21 of the Port Act authorizes the Board of Port Commissioners (BPC) to pass all necessary ordinances and resolutions for the regulation of the District and requires that all grants, franchises, leases, permits, rights, or privileges for more than five years shall be made by ordinance; and
 
     WHEREAS, in May 2010, District staff identified new revenue-producing opportunities and issued a Request for Qualifications to solicit proposals from cellular service providers (Providers) for the installation, operation and maintenance of cellular telecommunication equipment on non-leased tideland areas; and
 
     WHEREAS, the non-leased tideland areas located on Harbor Drive, Shelter Island, Spanish Landing and Embarcadero Marina Park South, are not in conflict with tenant leaseholds; and
 
    WHEREAS, at its September 7, 2010 meeting the BPC adopted two ordinances granting four long-term Tideland Use and Occupancy Permits (TUOPs), each with a cumulative total term of 20 years, to New Cingular Wireless PCS, a Delaware limited liability company dba AT&T and Sprint PCS Assets, a Delaware limited liability company for telecommunication sites located on Harbor Drive, Shelter Island, Spanish Landing and Embarcadero Marina Park South.   The cumulative initial capital investments by these Providers was approximately $157,000 annually; and
 
WHEREAS, staff has negotiated two additional 10-year TUOPs with two 5-year options with Verizon Wireless, LLC a Delaware limited liability company dba Verizon Wireless (Verizon) for telecommunication sites located on Harbor Drive and Shelter Island. 
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.    That the two 10-year Tideland Use and Occupancy Permits with two 5-year options for Telecommunication Sites between the San Diego Unified Port District and Verizon Wireless, LLC a Delaware limited liability company on file in the Office of the District Clerk located on Harbor Drive and Shelter Island to be used only and exclusively for the purpose of, with proper permits and approvals obtained, installing, constructing, modifying, maintaining, repairing, operating, and removing, all at Verizon's sole cost and expense, a wireless communication facility, which includes, but is not limited to, antenna structures, antenna equipment, cable wiring, utility lines, transmission lines, air-conditioned equipment shelters, back-up power sources (that may include back-up power generators with connected fuel storage tanks for emergency power), and related fixtures, as more particularly described therein, is hereby approved and granted.
 
Section 2.    The Executive Director or his designated representative is hereby directed to execute the Tideland Use and Occupancy Permit for Telecommunication Sites with Verizon Wireless, LLC on behalf of the District.
 
Section 3.    This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: Malcolm.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. Apr 17-00109754

SAN DIEGO UNIFIED PORT DISTRICT 
 
ORDINANCE 2713
 
ORDINANCE AMENDING THE SOUTH CAMPUS RELOCATION AGREEMENT TO EXTEND THE CURRENT ENVIRONMENTAL CONTAMINATION DISCOVERY CUT-OFF DATE OF 15 YEARS AFTER CLOSING BY TEN YEARS, FOR A NEW DISCOVERY CUT-OFF DATE AFTER CLOSING OF 25 YEARS, ENDING
DECEMBER 30, 2024, AND CLARIFYING ROLES OF THE PARTIES AND THE TIMING OF THE REMOVAL OF THE ASPHALT AND CONCRETE COVERING THE SITE

 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
 
WHEREAS, Section 21 of the Port Act authorizes the Board of Port Commissioners (BPC) to pass all necessary ordinances and resolutions for the regulation of the District; and
 
WHEREAS, in 1999, the District entered into a Relocation Agreement with Rohr Industries, Inc. operating as BF Goodrich Aerostructures Group (BFG), the City of Chula Vista (City) and the Redevelopment Agency of the City of Chula Vista for a series of land transactions that included the transfer of a uplands portion of BFG's industrial campus located south of H Street (referred to as South Campus) from BFG to the District, in exchange for BFG's tidelands portion of its campus north of H Street, on file in the Office of the District as Document No. 39466; and
 
WHEREAS, on November 1, 1999 the Board of Port Commissioners (BPC) adopted Ordinance 2075  amending the Relocation Agreement (Amendment No.), on file in the office of the District Clerk as Document No. 39787; and
 
WHEREAS, on February 2, 2010 the BPC adopted Ordinance 2598  amending the Relocation Agreement (Amendment No. 2),on file in the office of the District Clerk as Document No. 56072; and
 
WHEREAS, the Agreement states that, to the extent that BFG is liable for South Campus environmental conditions, it shall be liable only for South Campus environmental conditions that are discovered within 15 years after closing; and
 
WHEREAS, the Closing date was December 30, 1999 and as a result the discovery cut-off date is December 30, 2014; and
 
WHEREAS, recently, the District was approached by BFG regarding their desire to amend the relocation agreement to include the following: 
 
1) extending the contaminant discovery dates beyond the current December 30,
2014 date,
2)   clarifying the authority of designated representatives,
3)   clarifying the roles of joint and independent consultants, and
4)   clarifying that the District will not remove the asphalt and concrete (Cap)
covering the site earlier than reasonably necessary to allow development
(including, without limitation, installation of infrastructure) to proceed in
accordance with the approved development plans consistent with the Chula
Vista Bayfront Master Plan.
 
WHEREAS, extending the 2014 date for ten years will benefit the District by allowing the additional time for environmental testing; and
           
WHEREAS, the District's demolition time frame will not be driven by the current discovery cut-off date and allows cleanup to be tailored to the future development of the site and provide ten more years past the current 2014 discovery date for the discovery of contaminants for which BFG is responsible; and
           
WHEREAS, the amendment will also clarify the authority of the parties' representatives, the roles of consultants, and that the District will not remove the concrete covering the site until it is reasonably necessary to allow for development in accordance with approved development plans consistent with the Chula Vista Bayfront Master Plan.
           
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.    That Amendment No. 3 to Relocation Agreement with the City of Chula Vista and Rohr Industries, Inc. operating as BF Goodrich Aerostructures Group, and the Redevelopment Agency for the City of Chula Vista to extend the Relocation Agreement environmental contamination discovery cut-off date of 15 years after closing by ten years, for a new discovery cut-off date after closing of 25 years, ending December 30, 2024, and clarifying the roles and authority of designated representatives and joint and independent consultants, and the timing of the removal of the asphalt and concrete covering the site, contingent upon BFG, the City of Chula Vista and the Successor Agency to the Redevelopment Agency of the City of Chula Vista, executing Amendment No. 3 is hereby approved and granted.
 
Section 2.    The Executive Director or his designated representative is hereby directed to execute said Amendment No. 3 to the Relocation Agreement on behalf of the San Diego Unified Port District.
 
Section 3.    This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Malcolm, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. Apr 17-00109755

SAN DIEGO UNIFIED PORT DISTRICT
 
ORDINANCE 2714
 
ORDINANCE RATIFYING A 66-YEAR LEASE WITH HOST SAN DIEGO HOTEL LLC FOR SHERATON SAN DIEGO HOTEL & MARINA (MARINA TOWER), WITH CONDITIONS
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and

WHEREAS
, Section 87(b) of the Port Act grants authority to the District to lease the tidelands or submerged lands, or parts thereof, for limited periods, not exceeding 66 years, for purposes consistent with the trusts upon which those lands are held, by the State of California; and

WHEREAS
, Host Hotels & Resorts Inc. is a revenue producing District tenant through its leases with Sheraton San Diego Hotel & Marina (Sheraton) and the Coronado Island Marriott Resort (Coronado Marriott); and

WHEREAS,
Host San Diego Hotel, LLC (Host) is the District's lessee at the Sheraton on Harbor Island which leases the Marina Tower and the Bay Tower; and

WHEREAS,
Host currently has a 60-year Amended, Restated and Combined lease with the District for Sheraton's Marina Tower which commenced on January 1, 1997, and expires December 1, 2056 on file in the Office of the District Clerk as Document No. 35658, as Assigned under District Clerk's Document 38507; and

WHEREAS,
under the current Sheraton Marina Tower lease, a rent review was pending for the ten-year period ending December 31, 2017; and

WHEREAS
, staff has negotiated a new 66-year lease for Sheraton Marina Tower in an effort to update the lease to the current standard, in lieu of continuing the rent review negotiations; and

WHEREAS,
significant updates were made to the lease overall to include the District's current standard lease language; and

WHEREAS,
under proposed lease, Host will continue to pay the same minimum and percentage rental rates as they do under the existing lease, with no offsets; and

WHEREAS,
the proposed lease stipulate that the parties would use baseball arbitration as a means of resolving a rent dispute and that appraisers would not consider economic incentives granted by the District to another lessee for improvements primarily for the public benefit; and

WHEREAS,
at the October 9, 2012 Board of Port Commissioners (BPC) meeting staff presented the proposed lease to the BPC and was directed by the BPC to add and did add to the proposed lease clause Section 18.1 "Compliance with Employment and Labor Requirements."

NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
 
Section 1.    That a 66-year lease with Host San Diego Hotel, LLC, a Delaware limited liability company for the Sheraton San Diego Hotel & Marina (Marina Tower) conditioned upon the Board approval of items B and C to the corresponding Agenda Report is hereby granted and ratified.
 
Section 2.    The Executive Director or his designated representative is hereby directed to execute said 66-year lease with Host San Diego Hotel LLC for Sheraton San Diego Hotel & Marina (Marina Tower).
 
Section 3.     This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Malcolm, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. Apr 17-00109756

SAN DIEGO UNIFIED PORT DISTRICT 
 
ORDINANCE 2715
 
ORDINANCE RATIFYING A 66-YEAR LEASE WITH HOST SAN DIEGO HOTEL LLC FOR SHERATON SAN DIEGO HOTEL & MARINA (BAY TOWER), WITH CONDITIONS
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
 
WHEREAS, Section 87(b) of the Port Act grants authority to the District to lease the tidelands or submerged lands, or parts thereof, for limited periods, not exceeding 66 years, for purposes consistent with the trusts upon which those lands are held, by the State of California; and
 
WHEREAS, Host Hotels & Resorts Inc. is a revenue producing District tenant through its leases with Sheraton San Diego Hotel & Marina (Sheraton) and the Coronado Island Marriott Resort (Coronado Marriott); and
 
WHEREAS, Host is the District's lessee at the Sheraton on Harbor Island which leases the Marina Tower and the Bay Tower; and
 
WHEREAS, Host San Diego Hotel, LLC (Host) currently has a 60-year
Amended, Restated and Combined lease with the District for Sheraton's Bay Tower which commenced on January 1, 1997, and expires December 1, 2056 on file in the Office of the District Clerk as Document No. 35659, as Assigned under District Clerk's Document No. 38507; and
 
WHEREAS, under the current Sheraton Bay Tower lease, a rent review was pending for the ten-year period ending December 31, 2017; and
 
WHEREAS, staff has negotiated a new 66-year lease for the Sheraton Bay Tower in an effort to update the lease to the current standard, in lieu of continuing the rent review negotiations; and
 
WHEREAS, significant updates were made to the lease overall to include the District's current standard lease language; and
 
WHEREAS, under the proposed lease, Host will continue to pay the same minimum and percentage rental rates as they do under the existing lease, with no offsets; and
 
WHEREAS, the proposed lease stipulates that the parties would use baseball arbitration as a means of resolving a rent dispute and that appraisers would not consider economic incentives granted by the District to another lessee for improvements primarily for the public benefit; and
 
WHEREAS, at the October 9, 2012 Board of Port Commissioners (BPC) meeting staff presented the proposed lease to the BPC and was directed by the BPC to add and did add to the proposed lease clause Section 18.1 "Compliance with Employment and Labor Requirements."
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.    That a 66-year lease with Host San Diego Hotel, LLC, a Delaware limited liability company for the Sheraton San Diego Hotel & Marina (Bay Tower) conditioned upon the Board approval of items A and C to the corresponding Agenda Report is hereby granted and ratified.
 
Section 2.    The Executive Director or his designated representative is hereby directed to execute said 66-year lease with Host San Diego Hotel LLC for Sheraton San Diego Hotel & Marina (Bay Tower).
 
      Section 3.     This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Malcolm, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. Apr 17-00109757

SAN DIEGO UNIFIED PORT DISTRICT 
 
ORDINANCE 2716
 
ORDINANCE RATIFYING A 50-YEAR LEASE WITH ONE OPTION TO EXTEND FOR 16 YEARS, WITH CONDITIONS, TO HOST HOTELS & RESORTS, L.P. FOR CORONADO ISLAND MARRIOTT RESORT, WITH CONDITIONS
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
 
WHEREAS, Section 87(b) of the Port Act grants authority to the District to lease the tidelands or submerged lands, or parts thereof, for limited periods, not exceeding 66 years, for purposes consistent with the trusts upon which those lands are held, by the State of California; and
 
WHEREAS, Host Hotels & Resorts Inc. is a revenue producing District tenant through its leases with Sheraton San Diego Hotel & Marina (Sheraton) and the Coronado Island Marriott Resort (Coronado Marriott); and
 
WHEREAS, the District has a 50-year lease with Host Hotel & Resorts, L.P. (Host) for the Coronado Marriott which commenced on October 1, 1986 and expires September 30, 2036 on file in the office of the District Clerk as Document No. 19891, as Amended and Assigned under Document Nos.:  22654, 24415, 31353, 32416, 36789, 36788, 37877, 38125 and 38427; and
 
WHEREAS, staff has negotiated a new 50-year lease for Coronado Marriott with one option to extend for 16 years, conditioned upon the completion of the proposed spa and ballroom improvements;  in an effort to update the lease to the current standard, in lieu of continuing the rent review negotiations; and
 
WHEREAS, under the proposed lease, Host will continue to pay the same minimum and percentage rental rates as they do under the existing lease; with no offsets; and
 
WHEREAS, significant updates were made to the lease overall to include the District's current standard lease language; and
 
WHEREAS, the proposed lease stipulates that the parties would use baseball arbitration as a means of resolving a rent dispute and that appraisers would not consider economic incentives granted by the District to another lessee for improvements primarily for the public benefit; and
 
WHEREAS, at the October 9, 2012 Board of Port Commissioners (BPC) meeting staff presented the proposed lease to the BPC and was directed by the BPC to add and did add to the proposed lease clause Section 18.1 "Compliance with Employment and Labor Requirements."
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.    That a 50-year lease with one option to extend for 16 years, conditioned upon the completion of the proposed spa and ballroom renovations, with Host Hotels & Resorts, L.P., a Delaware limited partnership for the Coronado Island Marriott Resort and also conditioned upon the Board approval of items A and B to the corresponding Agenda Report is hereby granted and ratified.
 
Section 2.    The Executive Director or his designated representative is hereby directed to execute said 50-year lease with one option to extend for 16 years with Host Hotels & Resorts, L.P., a Delaware limited liability partnership.
 
       Section 3.    This ordinance shall take effect on the 31st day from its passage
by the Board of Port Commissioners.
 
AYES: Malcolm, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. Apr 17-00109758


Port of San Diego
PUBLISHED: Wednesday April 17, 2013


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