Port of LA

2. RESOLUTION NO. ____________ - APPROVAL OF FIRST AMENDMENT TO\nMASTER JOINT REVOCABLE PERMIT NO. 09-17 AMONG PACIFIC PIPELINE\nSYSTEM LLC AND CITY OF LOS ANGELES HARBOR DEPARTMENT AND\nPORT OF LONG BEACH, AS JOINT OWNERS\nSummary: Staff requests approval of the First Amendment (Amendment) to Master Joint\nRevocable Permit No. 09-17 (MJRP) among Pacific Pipeline System LLC (Pacific), the\nCity of Los Angeles Harbor Department (Harbor Department or POLA), and the Port of\nLong Beach (POLB, and with POLA collectively Ports), as joint owners, for subsurface\npipeline facility segments owned and maintained by Pacific covering 13,075 square feet\nof area along the Alameda Corridor in Wilmington, Carson, and Compton; and on the\nSan Pedro Branch line in Wilmington, Long Beach, and South Gate. Staff further\nrequests approval of Pacific’s parent guaranty from Plains All American Pipeline, L.P\n(Parent Guaranty).Under the First Amendment, the following substantive changes are\nmade to the MJRP: 1) adds facilities located in the Ports’ right-of-way not previously\nincluded in the MJRP, increasing the total permit area from 8,935 square feet to 13,075\nsquare feet; 2) increases the monthly compensation to account for the addition of new\nfacilities and an adjustment to market rates; 3) revises the facilities index exhibits to list\nadditional facilities and expansion in square footage of the premises area; 4) updates\nthe map exhibit per the revised facilities index; and 5) adds a corporate guaranty from\nPacific’s parent entity. Currently, the Harbor Department receives rent of $389.51 per\nmonth under the MJRP. Under the proposed First Amendment, monthly rent will\nincrease by $839.91, or 216 percent, to $1,229.42 per month, or $14,753.04 per year,\nretroactive to 2018. Annual rent increases based upon the Consumer Price Index (CPI)\nwill be retroactively applied beginning in 2019, and annually thereafter. The First\nAmendment requires approval from both Ports’ Board of Harbor Commissioners. The\nPOLB Board of Harbor Commissioners approved this Amendment at its meeting held on\nMarch 24, 2022.\nRecommendation: Board resolve to (1) find that the Director of Environmental\nManagement has determined that the proposed action is categorically exempt from the\nrequirements of the California Environmental Quality Act (CEQA) under Section 15301\nof the State CEQA Guidelines; (2) approve the First Amendment to Master Joint\nRevocable Permit No. 09-17 among Pacific Pipeline System LLC and the City of Los\nAngeles Harbor Department and Port of Long Beach, as joint owners; (3) authorize the\nExecutive Director to execute and the Board Secretary to attest to the First Amendment\nto Master Joint Revocable Permit No. 09-17; (4) approve the Parent Guaranty provided\nby Plains All American Pipeline, L.P. for Master Joint Revocable Permit No. 09-17; and\n(5) adopt Resolution No.____________.\nEnvironmental Management