City Council

(6) 24­0303 CD 15 ADMINISTRATIVE EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to a proposed Foreign­Trade Zone (FTZ) Operating Agreement No. 24­10006 between the Port of Los Angeles (POLA) and DB Schenker, Inc., to operate its facility within FTZ 202, Site No. 101, located at 990 East 233rd Street, Carson, California 90745. Recommendations for Council action: 1. 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. 2. APPROVE the proposed FTZ General Purpose Operating Agreement No. 24­10006 between the POLA and DB Schenker, Inc., to operate its facility within FTZ 202, Site No. 101, located at 990 East 233rd Street, Carson, California 90745, for a term of five years with three, five­year renewal options commencing on the first Friday day of the- month April 12, 2024 - approval by the City. PAGE 10 following (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. 2. APPROVE the proposed FTZ General Purpose Operating Agreement No. 24­10006 between the POLA and DB Schenker, Inc., to operate its facility within FTZ 202, Site No. 101, located at 990 East 233rd Street, Carson, California 90745, for a term of five years with three, five­year renewal options commencing on the first day of the month following approval by the City. 3. CONCUR with Board action on January 25, 2024, by Resolution No. 24­10307, authorizing the Executive Director, POLA, or designee, to execute the proposed FTZ Operating Agreement No. 24­10006, 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. 24­10006 with DB Schenker, 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 FTZ­related 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.