Port of LA

1. RESOLUTION NO. ____________ - ORDER APPROVING COMPENSATION RESET\nUNDER PERMIT NO. 925 WITH AUGELLO ENTERPRISES, LLC\nSummary: Staff requests approval of an Order resetting compensation under Permit No. 925\n(P925) with Augello Enterprises, LLC (Augello) for the period of November 6, 2022 through\nNovember 5, 2027. P925 grants Augello use of 15,927 square feet of paved land, 29,784 square\nfeet of unpaved land, and 64 square feet of nonexclusive wharf space for the operation and\nmaintenance of a fish processing and cold storage facility used for the offloading and processing\nof wet fish from commercial fishing boats, and associated water-dependent operations. P925 is\nfor a term of five years, with three five-year extensions at the sole discretion of the Board of\nHarbor Commissioners. Augello’s current annual rent is $157,011.72. Under the proposed\nOrder, rent will increase on a graduated basis:\n• Effective retroactively to November 6, 2022, monthly rent increases by 16.2 percent from\n$13,084.31 to $15,205.81 per month.\n• Effective January 1, 2023, monthly compensation would increase by an additional 7.1\npercent, such that annual compensation would increase by 23.2 percent from\n$157,011.72 to $193,445.76 during the first year of the five-year reset period.\n• Effective November 6, 2023, and annually thereafter, rent would increase by the annual\nincrease in the Consumer Price Index (CPI), with a floor of zero and no cap.\nThe proposed rent increase makes the rates consistent with current rates set forth in Tariff No.\n4.\nRecommendation: Board resolve to (1) find the Director of Environmental Management has\ndetermined that the proposed action is administratively exempt from the requirements of the\nCalifornia Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City\nCEQA Guidelines; (2) approve the Order resetting compensation under Permit No. 925 with\nAugello Enterprises, LLC for the compensation period of November 6, 2022 through November\n5, 2027; (3) authorize the Board Secretary to attest to the Order resetting compensation under\nPermit No. 925; and (4) adopt Order No.__________ and Resolution No.___________.