City Council

(1) 24­0850 CD 15 CATEGORICAL EXEMPTION, TRADE, TRAVEL AND TOURISM COMMITTEE REPORT and ORDINANCE FIRST CONSIDERATION relative to amending Port of Los Angeles (POLA) Tariff No. 4 to increase rated tariff items based on the West Region Consumer Price Index for All Urban Consumers. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. ADOPT the determination by the Board of Harbor Commissioners (BOHC) that the proposed action is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Article III, Class 1(31) of the Los Angeles City CEQA Guidelines. 2. PRESENT and ADOPT the accompanying ORDINANCE, dated July 23, 2024, approving Order No. 24­7370 of the BOHC, amending POLA Tariff No. 4. 3. APPROVE the POLA Resolution No. 24­10366 and Permanent Order No. 24­7370 to amend POLA Tariff No 4 increasing rates to Section Four “Dockage”, Items 450 and 480; Section Five “Wharfage”, Items 550­001 through 550­ 801; Section Seven “Free Time, Wharf Demurrage, and Wharf Storage”, Items 780 and 790; Section Nine “Container Cranes”, Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. in Transit Sheds and on Wharves and Wharf Premises”, Item 1100; Section Twelve “Water and Electricity” Item 1200; Section Fifteen “Public Landings”, Items 1525 and 1530; Section Eighteen “General Rules and Regulations ­ Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 and 1930, subject to the California Association of Port Authorities’ review and approval; and, authorize the Executive Director, POLA, to work with the California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with the California Association of Port Authorities procedure. Fiscal Impact Statement: None submitted by the City Attorney. The City Administrative Officer (CAO) reports that approval of the recommendations contained in the CAO report dated July 10, 2024, attached to the Council file, of the proposed Permanent Order No. 24­ 7370 would implement a general rate increase (GRI) to all revenue­ generating items, with certain exceptions, under POLA Tariff No. 4, effective July 1, 2024. The most significant wharfage rate on Merchandise Not Otherwise Specified (Item 550­001) would increase from 710 to 736 cents per 1,000 kilograms or per cubic meter. If the proposed GRI is implemented, POLA estimates an increase in operating revenues of $6,936,291 through 2025. From July 1, 2024 through December 31, 2024, operating revenue is estimated at $2,068,686 for container terminals and $180,904 for non­container terminals, and from January 1, 2025 through December 31, 2025, operating revenue is estimated at $4,320,235 for container terminals and $366,466 for non­container terminals. The recommendations in said CAO report and proposed actions comply with the POLA Financial Policies. There is no impact on the City’s General Fund.