Port of LA

3. RESOLUTION NO. ____________- APPROVE ORDER RESETTING COMPENSATION\nUNDER PERMIT NO. 916 WITH SHELL OIL COMPANY\nSummary: Staff requests approval of the Order resetting compensation under Permit No. 916 with\nShell Oil Company (Shell) for the five-year period of March 26, 2024, through March 25, 2029.\nPermit No. 916 grants Shell the use of Berths 167-169 in Wilmington for the operation of a marine\nliquid bulk terminal. Under the proposed action, Shell’s minimum annual land rent will increase by\n$68,437, or 3.57 percent, from $1,918,013 to $1,986,450 effective March 26, 2024. Thereafter,\nannual rent will increase by the year-over-year change in the Consumer Price Index (CPI). In\naddition to the annual minimum land rent, Shell will continue to be financially responsible for\npayment of all tolls and charges pursuant to Port of Los Angeles Tariff No. 4. The applicable five-\nyear compensation reset was due on March 26, 2024; consequently, Shell has agreed and will be\nassessed the compensation reset retroactively to March 26, 2024.\nRecommendation: Board to resolve (1) find that the Director of Environmental Management has\ndetermined that the proposed action is administratively exempt from the requirements of the\nCalifornia Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City\nCEQA Guidelines; (2) approve the Order resetting compensation under Permit No. 916 with Shell\nOil Company; (3) authorize the Board Secretary to attest to the Order resetting compensation under\nPermit No. 916; and (4) adopt Resolution No. ____________ and Order No. ____________.\nWaterfront & Commercial Real Estate