City Council

(20)\n13-0332\nCD 15\nCATEGORICAL EXEMPTION and TRADE, TRAVEL AND TOURISM\nCOMMITTEE REPORT relative to he Fourth Amendment to Permit No.\n708 with Kinder Morgan Tank Storage Terminals, LLC, to allow\ncontinued operation of the marine oil terminal at Berths 118-119 in the\nPort of Los Angeles (POLA).\nRecommendations for Council action:\n1. CONCUR with the determination by the Board of Harbor\nCommissioners (BOHC) that this action is categorically exempt\nfrom the California Environmental Quality Act (CEQA) pursuant\nto Article III, Class 1(14) of the Los Angeles City CEQA\nGuidelines.\n2. APPROVE BOHC Resolution No. 25-10578 authorizing\napproval of the proposed Fourth Amendment to Permit No. 708\nwith Kinder Morgan Tank Storage Terminals, LLC to:\na. Retroactively extend the contract term by an additional\nfive years from April 14, 2025 through April 13, 2030, for a\ntotal aggregate term of 42 years.\nb. Continue operations of the existing marine oil terminal at\nBerths 118-119 in the POLA through no later than April 13,\n2029 and restore and surrender the site to the POLA no\nlater than April 13, 2030.\nc. The annual base land rental rate of $2,255,182.88\nremains unchanged, still subject to annual changes in the\nConsumer Price Index and the next five-year\ncompensation reset scheduled for April 14, 2028.\n3. AUTHORIZE the Executive Director, POLA, or designee, to\nexecute the proposed Amendment, already approved as to form\nby the City Attorney, and return the Resolution to the POLA for\nfurther 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. 708 with Kinder\nMorgan will not change the annual base land rent of $2,255,182.88\nbut it is subject to annual changes in the CPI, and the next five-year\ncompensation reset scheduled for April 14, 2028. It is estimated that\ncontinued operations under the proposed five-year term extension will\ngenerate $3.1 million annually, or $15.5 million over the five-year\nperiod for the POLA. Revenues will be deposited in the Harbor\nRevenue Fund. The recommendations in the CAO report and\nproposed actions comply with the POLA’s Financial Policies.