Los Angeles

City Council

March 05, 2024 Item #6

Agenda Item 6

(6) 12-1349 CD 15 ADMINISTRATIVE EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to proposed Third Amendment to Foreign-Trade Zone (FTZ) Operating Agreement No. 22-2633-C between the Port of Los Angeles (POLA) and Schafer Brothers Distribution Center, Inc. (Schafer Brothers) FTZ 202, Site No. 12. 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. 22-2633-C between the City of Los Angeles Harbor Department (POLA) and Schafer Brothers, FTZ 202, Site No. 12, to extend the term by five years retroactively from October 1, 2022 through September 30, 2027. CONCUR with Board action on December 1, 2022, by Resolution No. 22-10105, authorizing the Executive Director, POLA, or designee, to execute the proposed Third Amendment to Foreign-Trade Zone Operating Agreement No. 22-2633-C. Fiscal Impact Statement: The City Administrative Officer reports that approval of the proposed Third Amendment to FTZ Operating Agreement No. 22-2633-C with Schafer Brothers will result in the POLA receiving $7,750 annually in accordance with FTZ Tariff No. 2. Approval of the amendment 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 on the City's General Fund.