City Council

(5) 24-0167 CD 15 ADMINISTRATIVE EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to proposed Foreign-Trade Zone (FTZ) Operating Agreement No. 23­-9981 between the Port of Los Angeles (POLA) and Customs Air Warehouse, LLC, FTZ 202, Site No. 10E, for a term of five years with three, five-year renewal options. Recommendations for Council action: ADOPT the determination by the Board of Harbor Commissioners (Board) that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2(f) of the City of Los Angeles CEQA Guidelines. APPROVE the FTZ Operating Agreement No. 23-9981 between the City of Los Angeles Harbor Department (POLA) and Customs Air Warehouse, LLC, FTZ 202, Site 10E, for a term of five years with three, five-year renewal options. CONCUR with the Board action on September 21, 2023, by Resolution No. 23-10242, authorizing the Executive Director, POLA, or designee, to execute the proposed FTZ Operating Agreement already approved as to form by the City Attorney. Fiscal Impact Statement: The City Administrative Officer reports that approval of the proposed FTZ Operating Agreement No. 23-9981 with Customs Air Warehouse, LLC will result in the POLA receiving $7,750 annually in accordance with FTZ Tariff No. 2. Approval of the Agreement is not projected to result in additional, incremental FTZ-related consulting service expenses being incurred by the POLA. The recommendations in the report comply with the POLA’s Financial Policies. There is no impact to the City's General Fund.