City of Los AngelesCALIFORNIA

ERIC GARCETTIMAYOR

OFFICE OF THECITY CLERK

Council and Public Services Division200 N. SPRING STREET, ROOM 395

LOS ANGELES, CA 90012GENERAL INFORMATION - (213) 978-1133

FAX: (213) 978-1040______

BRIAN E. WALTERSDIVISION CHIEF

HOLLY L. WOLCOTTCITY CLERK

EXECUTIVE OFFICER

______SHANNON D. HOPPES

CLERK.LACITY.ORG

When making inquiries relative tothis matter, please refer to theCouncil File No.: 13-0912-S2

AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER

OFFICIAL ACTION OF THE LOS ANGELES CITY COUNCIL

Council File No.:

Council Meeting Date:

Agenda Item No.:

Agenda Description:

Council Action:

Council Vote:

HOLLY L. WOLCOTTCITY CLERK

13-0912-S2

February 28, 2018

17

CATEGORICAL EXEMPTION and TRADE, TRAVEL, AND TOURISMCOMMITTEE REPORT relative to amending the Port of Los Angeles FreeTrade Zone agreement with PUMA North America, Inc., for the use ofadditional land and warehouse space.

TRADE, TRAVEL, AND TOURISM COMMITTEE REPORT - ADOPTED

YES BOB BLUMENFIELDYES MIKE BONINYES JOE BUSCAINOABSENT GILBERT A. CEDILLOYES MITCHELL ENGLANDERYES MARQUEECE HARRIS-DAWSONABSENT JOSE HUIZARABSENT PAUL KORETZYES PAUL KREKORIANABSENT NURY MARTINEZYES MITCH O'FARRELLYES CURREN D. PRICEYES MONICA RODRIGUEZYES DAVID RYUYES HERB WESSON

March 2, 2018

File No. 13-0912-S2

CATEGORICAL EXEMPTION and TRADE, TRAVEL, AND TOURISM COMMITTEE REPORT relative to amending the Port of Los Angeles (POLA) Free Trade Zone (FTZ) agreement with PUMA North America, I nc., for the use of additional land and warehouse space.

Recommendations for Council action:

1. ADOPT the determination by the Board of Harbor Commissioners that the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with Article III, Class 1 (14) of the Los Angeles City CEQA Guidelines.

2. APPROVE the Port Resolution No. 17-8212 authorizing a proposed Second Amendment to FTZ Operating Agreement No. 13-3149 with Puma North America, Inc., in FTZ No. 202, Site No. 9, at 19688 and 19700 Van Ness Avenue, Torrance, to expand land usage in FTZ No. 202, Site No. 9.

Fiscal Impact Statement: The City Administrative Officer (CAO) reports that PUMA has paid the POLA a one-time application fee of $5,000 and an annual fee from the beginning of the FTZ agreement. PUMA will continue to pay the POLA an annual fee of $10,000 per year or $50,000 in each of the remaining five-year contract terms. PUMA will have three additional renewal options, subject to approval by the Board of Harbor Commissioners. Total revenue will be approximately $205,000, including the $5,000 application fee, over the 20-year contract term. The POLA states that it has incurred expenses of approximately $48,606 for outside FTZ related consulting services and collected approximately $336,688 in revenue from the Port FTZ operators. The Port provides FTZ sites as a service to its customers to promote international trade and commerce in the region.

Community Impact Statement: None submitted.

TIME LIMIT FILE -APRIL 10,2018

(LAST DAY FOR COUNCIL ACTION - APRIL 10, 2018)

SUMMARY

I n a report to the Mayor dated January 30, 2018, the CAO states that POLA requests authority to execute the proposed second amendment to FTZ Operating Agreement No. 13-3149 with Puma North America, I nc. The amendment authorizes PUMA to expand its property to add a new site to the original FTZ 9 site to include an adjacent 2.51 acres of land for additional warehouse space. PUMA stores, receives, re-labels, repackages, manages inventory, and distributes shoes, garments and different consumer products for sale and distribution to various domestic and international markets.

On December 14, 2017, the Board of Harbor Commissioners approved POLA’s request. The CAO concurs with this action.

At its special meeting held February 20, 2018, the Trade, Travel, and Tourism Committee recommended that Council authorize POLA to execute the proposed amendment to the

agreement with PUMA, as recommended by the Board of Harbor Commissioners and the CAO.

Respectfully Submitted

TRADE, TRAVEL, AND TOURISM COMMITTEE

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MEMBER VOTE BUSCAINO: YES BONIN:KREKORI AN: YES

YES

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-NOT OFFICIAL UNTIL COUNCIL ACTS-