City Council

(2) 24-0172 CD 15 ADMINISTRATIVE EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to a proposed Foreign-Trade Zone (FTZ) Operating Agreement No. 23-9962 between the Port of Los Angeles (POLA) and Nippon Express USA, Inc., to operate its facility within FTZ 202, Site No. 61, located at 1901 West Pacific Coast Highway, Long Beach, California. 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. 23-9962 between the POLA and Nippon Express USA, Inc., to operate its facility within FTZ 202, Site No. 61, for a term of five years with three, five-year renewal options commencing on the first day of the month following approval by the City. CONCUR with Board action on May 11, 2023, by Resolution No. 23-10181, authorizing the Executive Director, POLA, or designee, to execute the proposed FTZ Operating Agreement No. 23-9962. Fiscal Impact Statement: The City Administrative Officer reports that approval of the proposed FTZ Operating Agreement No. 23-9962 with Nippon Express USA, Inc. 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.