City Council

(22)\n12-0344\nCD 15\nADMINISTRATIVE AND CATEGORICAL EXEMPTION and TRADE,\nTRAVEL AND TOURISM COMMITTEE REPORT relative to the Fourth\nAmendment to Permit No. 897 with Catalina Channel Express, Inc., to\nretroactively amend permit language and reset compensation.\nRecommendations for Council action:\n1. CONCUR with the determination by the Board of Harbor\nCommissioners (BOHC) that this action is administratively and\ncategorically exempt from the California Environmental Quality\nAct (CEQA) pursuant to Article II, Section 2(f) and Article III,\nClass 1(14) of the Los Angeles City CEQA Guidelines.\n2. APPROVE BOHC Resolution No. 25-10591 and Order No. 257406 authorizing the proposed Fourth Amendment to Permit\nNo. 897 between the Port of Los Angeles (POLA) and Catalina\nChannel Express, Inc. to make the following retroactive\nchanges:\na. Effective July 25, 2023, amend language to define\ncompensation years and outline requirements to\nimplement percentage rent compensation.\nb. Effective July 25, 2024, increase the minimum annual\nrent, which is subject to annual changes in the Consumer\nPrice Index, by $146,456, from $497,596 to $644,052.\n3. AUTHORIZE the Executive Director, POLA, or designee, to\nexecute the proposed Amendment and Order, already approved\nas to form by the City Attorney, and return the Resolution to the\nPOLA for further processing, including Council consideration.\nFiscal Impact Statement: The City Administrative Officer (CAO)\nreports that there is no impact on the City’s General Fund. Approval of\nthe proposed Fourth Amendment to Permit No. 897 with Catalina\nChannel Express, Inc. and Order No. 25-7406 will retroactively\nimplement percentage rent compensation and reset minimum rent\ncompensation. Retroactive to July 25, 2023, percentage rent\ncompensation will be added, equal to five percent of Gross Receipts\nthat exceed the fixed minimum rent compensation and two percent of\nGross Receipts arising from or related to freight operations conducted\non the premises that exceed fixed minimum rent compensation. The\nfixed minimum annual rent, subject to annual changes in the\nConsumer Price Index, will increase by $146,456, from $497,596 to\n$644,052 effective July 25, 2024 through July 24, 2029. Revenues will\nbe deposited in the Harbor Revenue Fund. The recommendations in\nthe CAO report and proposed actions comply with the POLA’s\nFinancial Policies.