Los Angeles

Port of LA

July 20, 2023 Item #11

Agenda Item 11

11. RESOLUTION NO. ____________ - APPROVE PERMANENT ORDER TO AMEND\nPORT OF LOS ANGELES TARIFF NO. 4, “GENERAL RATE INCREASE”\nSummary: Staff requests approval to amend Port of Los Angeles Tariff No. 4 to increase rated\ntariff items based on the West Region Consumer Price Index for All Urban Consumers. The\nCalifornia Association of Port Authorities, of which the Port of Los Angeles is a member, adopted\nan annual general rate increase methodology for tariffs based on the CPI-U. The Bureau of\nLabor Statistics has identified a 6.2 percent increase in the CPI-U for the 12-month period ending\nDecember 2022. On April 28, 2022, the Board of Harbor Commissioners approved Order No.\n22-7327, which was approved by City Council Ordinance No. 187649, adopting a 7.1 percent\nGRI through CAPA, effective August 1, 2022. Prior to that, the Port implemented GRIs in the\nPort’s Tariff No. 4 in calendar years 2004 and 2005, and a 1.7 percent GRI for a temporary 9-\nmonth period in July 2013 - March 2014 under Temporary Orders only, which expired when it\nwas not approved by City Council under Permanent Order. The proposed CAPA GRI, effective\nSeptember 1, 2023, of 6.2 percent, is applicable to the POLA Tariff rated tariff items, excluding\nrated tariff items that have a scheduled rate increase as of the effective date. A separate action\nrecommends a Temporary Order to make changes to Tariff No. 4 within the Board’s authority to\nadopt rates for up to 90-days, with any rates to be effective beyond the 90-days requiring this\nPermanent Order and Ordinance to be approved by the City Council.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management has\ndetermined that the proposed action is categorically exempt from the requirements of the\nCalifornia Environmental Quality Act (CEQA) under Article III Class 1(31) of the Los Angeles City\nCEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4 increasing\nrates to Section Four “Dockage”, Items 450 & 480; Section Five “Wharfage”, Items 550-001\nthrough 550-801; Section Nine “Container Cranes” Item 900; Section Eleven “Charges for\nOccupancy of Office Space, etc. In Transit Sheds and on Wharves and Wharf Premises”, Item\n1100; Section Twelve “Water and Electricity”, Item 1200; Section Fifteen “Public Landings”,\nItems 1525 & 1530; Section Eighteen “General Rules and Regulations – Miscellaneous”, Item\n1802; and Section Nineteen “Commercial Fishing Vessel”, Items 1910 & 1930, subject to the\nCalifornia Association of Port Authorities’ review and approval, and authorize the Executive\nDirector to work with the California Association of Port Authorities to secure this approval or\nproceed to take independent action in accordance with the California Association of Port\nAuthorities’ procedure;\n11. (Continued)\n(3) adopt Permanent Order No. __________ with an effective date of September 1, 2023,\nto amend Port of Los Angeles Tariff No. 4, increasing rates to Section Four “Dockage”, Items\n450 & 480; Section Five “Wharfage”, Items 550-001 through 550-801; Section Nine “Container\nCranes” Item 900; Section Eleven “Charges for Occupancy of Office Space, etc. In Transit Sheds\nand on Wharves and Wharf Premises””, Item 1100; Section Twelve “Water and Electricity”, Item\n1200; Section Fifteen “Public Landings”, Items 1525 & 1530; Section Eighteen “General Rules\nand Regulations – Miscellaneous”, Item 1802; and Section Nineteen “Commercial Fishing\nVessel”, Items 1910 & 1930; (4) direct the Board Secretary to transmit to the City Council for\napproval the Permanent Order and the Ordinance approving and authorizing the Amendments\nto Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); (5) direct the Board Secretary\nto transmit to the City Clerk a Notice of Public Hearing for publication in accordance with the\nprovisions of California Government Code sections 66018 and 6062a; (6) after the effective date\nof the Ordinance, transmit the Permanent Order and Ordinance to the Executive Director or his\nnominee for implementation and posting to the Port of Los Angeles website; and (7) adopt\nResolution No._________ .