City Council

(28) 24­0422 CD 15 ADMINISTRATIVE EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to proposed Agreement No. 24­10007, Friday Permit No. 692, between - April the -Port of Los Angeles (POLA) 26, 2024 and Yusen PAGE 29 Terminals, LLC (YTI). TIME LIMIT FILE ­ JUNE 3, 2024 (LAST DAY FOR COUNCIL ACTION ­ MAY 31, 2024) (28) 24­0422 CD 15 ADMINISTRATIVE EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to proposed Agreement No. 24­10007, Permit No. 692, between the Port of Los Angeles (POLA) and Yusen Terminals, LLC (YTI). 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(i) of the City of Los Angeles CEQA Guidelines. 2. APPROVE proposed Agreement No. 24­10007, Permit No. 692, between the POLA and YTI, to implement a zero­emission yard tractor demonstration project over three years, for total estimated costs to the POLA of $1,500,000, with first year estimated costs of $300,000; the term of the demonstration project is estimated to begin upon approval of the agreement and end in three years in 2028, if there is a successor Permit, or September 30, 2026, the current Permit expiration date, if there is no successor Permit. 3. CONCUR with the Board’s action on February 29, 2024, by Resolution No. 24­10316, authorizing the Executive Director, POLA, or designee, to execute the proposed agreement, already approved as to form by the City Attorney. Fiscal Impact Statement: The City Administrative Officer reports that approval of the proposed Agreement No. 24­10007 between the POLA and Yusen Terminals, LLC. (YTI), will result in an estimated cost of $1,500,000 for the three to four year program with estimated expenditures of $300,000 for Fiscal Year (FY) 2024­2025, and $400,000 each for FY 2025­2026 through FY 2027­2028. Funds for the charging infrastructure and installation costs will be budgeted and expended through the POLA’s Capital Improvement Program and requested through the Project Development Committee and annual budget process. The POLA’s financial obligations after the first year of the Agreement are contingent upon the Board appropriation of funds. Equipment lease expenses will be expended from Account 59190 (Equipment Rental), Center 0330 (Environmental Management), Program 000 (Base Budget). If any subsequent fiscal year funds are not appropriated by the Board for the work required by the Agreement, then the Agreement shall be terminated. Friday The recommendations the CAO - April 26,in2024 - report and proposed actions 30 comply PAGE with the POLA’s Financial Policies. There is no impact on the City’s 2025­2026 through FY 2027­2028. Funds for the charging infrastructure and installation costs will be budgeted and expended through the POLA’s Capital Improvement Program and requested through the Project Development Committee and annual budget process. The POLA’s financial obligations after the first year of the Agreement are contingent upon the Board appropriation of funds. Equipment lease expenses will be expended from Account 59190 (Equipment Rental), Center 0330 (Environmental Management), Program 000 (Base Budget). If any subsequent fiscal year funds are not appropriated by the Board for the work required by the Agreement, then the Agreement shall be terminated. The recommendations in the CAO report and proposed actions comply with the POLA’s Financial Policies. There is no impact on the City’s General Fund.