Port of LA

3. RESOLUTION NO. ____________ - ORDER APPROVING COMPENSATION RESET\nUNDER PERMIT NO. 827 WITH APM TERMINALS PACIFIC, LLC\nSummary: Staff requests approval of the Order resetting compensation under Permit No. 827\n(Permit) between the City of Los Angeles Harbor Department (Harbor Department) and APM\nTerminals Pacific, LLC (APMT). The reset covers the five-year period from August 1, 2022,\nthrough July 31, 2027. As a result of this Order, total annual guaranteed compensation will\nincrease by at least $93.7 million, or 23.4 percent, from $401.1 million over the prior five-year\nperiod to $494.8 million over the next five-year period. Provided below is a summary:\n• Minimum Annual Guarantee (MAG) per acre of the container terminal premises\n(441.74 acres) will increase from $185,000 to $210,000.\n• Annual rent for the intermodal rail facility (40.84 acres) will increase from $2,032,525\nper year as of July 31, 2022, to the following rate schedule:\no August 1, 2022: $2,175,615\no August 1, 2023: $2,175,615\no August 1, 2024: $2,175,615\no August 1, 2025: $2,318,772\no August 1, 2026: $3,220,152\n• Per container charge rate schedule (i.e., TEU rate) reflects a wholesale 7.04 percent\nincrease consistent with the General Rate Increase which took effect August 1, 2022.\nEffective August 1, 2023, the MAG and TEU rates will be subject to annual increases based\nupon changes in the Consumer Price Index (CPI), subject to an annual minimum of 2 percent\nand a maximum of 7 percent.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management has\ndetermined that the proposed action is administratively exempt from the requirements of the\nCalifornia Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City\nCEQA Guidelines; (2) approve the Order resetting compensation under Permit No. 827 with\nAPM Terminals Pacific, LLC for the period of August 1, 2022 to July 31, 2027; (3) authorize the\nBoard Secretary to attest to the Order resetting compensation under Permit No. 827; and (4)\nadopt Resolution No.___________ and Order No.____________.