Port of LA

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. _______.