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9. RESOLUTION NO. ____________ - APPROVE TWELFTH AMENDMENT TO PERMIT NO.\n733 WITH FENIX MARINE SERVICES, LTD.\nSummary: Staff requests approval of the Twelfth Amendment (Amendment) to Permit No. 733\n(Permit) with Fenix Marine Services, Ltd. (FMS) which is necessary for the City of Los Angeles\nHarbor Department (Harbor Department) to undertake construction of the Berths 302-305 On-Dock\nRail Yard Expansion Project (Project). The proposed Project will add five loading/unloading tracks\nto the FMS terminal located at Pier 300, which will increase on-dock railyard capacity and enable\nmore cargo to be loaded onto trains via the on-dock railyard within the terminal. The Project cost is\n$51,900,000 of which, $37,378,743 will be funded through State and Federal grants secured by the\nHarbor Department. The Amendment makes the following notable changes to the Permit: 1) defines\nthe Project scope; 2) temporarily removes approximately 23 acres of the premises for the duration\nof the 24-month construction period and provides substitute premises adjacent to the terminal; 3)\nmodifies rent provisions and adds potential rent credits and damages clauses, all related to the\nProject; 4) increases the premises size from 292 acres to 302 acres at Project completion; 5)\ndesignates the rail added under the Project as a new parcel at a new fixed rate; and 6) adds Project-\nspecific indemnity provisions. The Harbor Department will be financially responsible for potentially\n$27,551,257 in costs, summarized as follows: payment of the $14,521,257 in remaining costs\nrelated to the Project; providing rent credits in the amount of $10,230,000; providing an additional\nrent credit not-to-exceed $1,000,000 arising from increased FMS operating costs during\nconstruction; as well as for payment of liquidated damages not-to-exceed $1,800,000 to FMS\nresulting from Project construction delays.\nRecommendation: Board to resolve (1) find that the Director of Environmental Management has\ndetermined that the proposed action has been previously evaluated pursuant to the requirements\nof the California Environmental Quality Act (CEQA) under Article II Section 2(i) of the Los Angeles\nCity CEQA Guidelines; (2) approve the Twelfth Amendment to Permit No. 733 with Fenix Marine\nServices, Ltd.; (3) direct the Board Secretary to transmit the Twelfth Amendment to Permit No. 733\nto City Council for approval pursuant to Charter Section 606 of the City Charter; (4) authorize the\nExecutive Director to execute and the Board Secretary to attest to the Twelfth Amendment upon\napproval by City Council; and (5) adopt Resolution No. ___________.\nCargo Marketing