Los Angeles

Port of LA

November 16, 2023 Item #1

Agenda Item 1

1. RESOLUTION NO. ____________ - APPROVE SECOND TEMPORARY ORDER TO\nAMEND PORT OF LOS ANGELES TARIFF NO. 4, SECTION SEVEN “FREE TIME,\nWHARF DEMURRAGE, AND WHARF STORAGE”\nSummary: Staff requests approval of a second Temporary Order to amend Port of Los Angeles\n(Port) Tariff No. 4 (Tariff), Section Seven “Free Time, Wharf Demurrage, and Wharf Storage”,\nItems 720 and 780. Item 720 would be modified to include Saturdays and/or Sundays as part\nof the allowable free time on inbound containerized merchandise, provided the marine terminal\n(terminal) operator’s truck gates are announced or published as being open for container\ndelivery on those days. Additionally, to deter Port terminal property from being used as a cargo\nstorage facility, Item 780 would be modified to add a third demurrage tier for merchandise\nremaining on terminal for more than 10 days after the expiration of free time. This second\nTemporary Order is being proposed within the Board of Harbor Commissioners’ (Board)\nauthority to adopt rates for up to 90 days. At the September 7, 2023 Board meeting, the Board\napproved Temporary and Permanent Orders amending the sections mentioned above with an\neffective date of October 1, 2023. Changes in the Tariff beyond a Temporary Order’s 90-day\neffective period require the City Council to approve a Permanent Order by Ordinance. The City\nCouncil has not calendared and approved the Permanent Order and Ordinance. The first\nTemporary Order will expire on December 30, 2023; therefore, a second Temporary Order is\nbeing proposed to allow additional time for the Permanent Order to pass through the City Council\napproval process. This second Temporary Order, if approved, will become effective on\nDecember 31, 2023 and will expire in 90 days after the day it is published or upon execution of\nthe Permanent Order by the City Council, whichever occurs first.\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\nCity CEQA Guidelines; (2) approve the amendment to Port of Los Angeles Tariff No. 4, modifying\nrates and regulations in Section Seven “Free Time, Wharf Demurrage, and Wharf Storage”,\nItems 720 and 780, subject to the California Association of Port Authorities’ review and\napproval, and authorize the Executive Director to work with the California Association of Port\nAuthorities to secure this approval or proceed to take independent action in accordance with the\nCalifornia Association of Port Authorities’ procedure; (3) adopt a second Temporary\nOrder___________ with an effective date of December 31, 2023, to amend Port of Los\nAngeles Tariff No. 4, to modify rates and regulations in Section Seven “Free Time, Wharf\nDemurrage, and Wharf Storage”, Items 720 and 780; (4) authorize the Board Secretary to certify\nthe adoption of a second Temporary Order by the Board of Harbor Commissioners and cause\nthe same to be published once in a newspaper printed and published in the City of Los Angeles,\nto take effect on December 31, 2023, for a period not-to-exceed 90 days pursuant to City Charter\nSection 653(b); and (5) adopt Resolution No.____________.\nCommunity Relations