Port of LA

6. RESOLUTION NO. ____________ - APPROVE PERMIT NOS. 958, 959 AND\nSETTLEMENT AGREEMENT WITH PASHA STEVEDORING & TERMINALS, L.P.;\nGUARANTIES FURNISHED BY THE PASHA GROUP\nSummary: Staff requests approval of the following:\n1. Permit Nos. 958 and 959 between Pasha Stevedoring & Terminals, L.P. (Pasha) and the\nCity of Los Angeles Harbor Department (Harbor Department);\n2. Settlement and Mutual Release of Claims Agreement (Settlement Agreement) between\nPasha and the Harbor Department to resolve a dispute concerning past due compensation\nunder Space Assignment No. 09-01 for Berths 206-209 for the period of 2009 to 2012; and\n3. Three individual guaranty agreements furnished by The Pasha Group (Pasha’s parent\ncompany) concerning Permit Nos. 958, 959 and the Settlement Agreement, respectively.\nWith respect to Permit Nos.958 and 959, the term of each proposed Permit is five years.\nGuaranteed compensation for each Permit is as follows for the first year:\n• Permit No. 958 (concerning Berths 174-181) will be $3,371,760 on 40.07 acres; and\n• Permit 959 (concerning Berths 206-209) will be $4,201,320 on 23.03 acres.\nYear one (i.e. Calendar Year 2023) compensation under each Permit will be pro-rated based\nupon a compensation year end of December 31, 2023. The MAG under each Permit will be\nadjusted based upon scheduled increases through December 31, 2025, with annual adjustments\noccurring in Calendar Years 2026 and 2027 based upon the year-over-year change in the\nConsumer Price Index (CPI), subject to a floor of 2 percent. Regarding the companion\nSettlement Agreement, Pasha agrees to pay $1 million to resolve disputed Space Assignment\ncharges that accrued between 2009 and 2012.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management has\ndetermined that the proposed action has been previously evaluated pursuant to the\nrequirements of the California Environmental Quality Act (CEQA) under Article II Section 2(i) of\nthe Los Angeles City CEQA Guidelines; (2) find that entering into Permit Nos. 958 and 959 is in\nthe best interest of the City of Los Angeles despite certain exceptions to the City of Los Angeles\nHarbor Department’s Leasing Policy, Section XI, concerning a 2 percent non-refundable\nholdback on security instruments for a maintenance fund; (3) approve Permit No. 958 with Pasha\nStevedoring & Terminals, L.P.; (4) approve Permit No. 959 with Pasha Stevedoring & Terminals,