October 18, 2022
City Manager's Office
DATE: October 18, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Lizeht Zepeda, Senior Business Assistance Officer
Subject:
Amend the Port of Richmond Federal Maritime
Commission (FMC) Tariff No.3
FINANCIAL IMPACT: The Port will generate additional vessel dockage, wharfage, storage, and miscellaneous revenue, which
will increase the Port’s overall operating revenues.
The estimated annual increase in revenue is
approximately $214,200, representing a two percent
(2%) increase from the previous year.
PREVIOUS COUNCIL
ACTION:
June 29, 2021 - Annual approval for 2021
STATEMENT OF THE
ISSUE:
The Port of Richmond is seeking a two percent (2%)
general rate increase at the Port of Richmond Federal
Maritime Commission (FMC) Tariff No. 3 and an
annual Consumer Price Index (CPI) rate adjustment.
The effective date for the adjustment shall be July 1,
2022. The Port of Richmond will maintain a
competitive position in reference to the other
California West Coast ports, while maximizing
revenues.
RECOMMENDED ACTION:
ADOPT a resolution to amend the Port of Richmond
Federal Maritime Commission (FMC) Tariff No. 3,
reflecting a two percent increase in tariff rates as
approved by the Executive Committee of the
California Association of Port Authorities (CAPA) –
City Manager’s Office (Lizeht Zepeda 510-620-6653).
AGENDA
REPORT
October 18, 2022
DISCUSSION:
On March 13, 2015, the California Association of Port Authorities (CAPA) Committee on Tariffs and Practices approved the revised General Rate Increase (GRI) Policy, allowing all Ports in the State of California, a CPI-U change for the 12-month period ending in December each year. Member Ports will apply a GRI on July 1st of each year, or in accordance with their fiscal calendars.
The Port of Richmond submitted a docket proposal GRI to the California Association of Port Authorities on September 21, 2022, and it passed unanimously by the CAPA Tariffs and Practices Committee. The docket was submitted late to both CAPA and City Council as staff was transitioning. However, any tariffs due between July 1st thru October 18th of 2022, will be retroactively charged the appropriate two percent (2%) increase.
DOCUMENTS ATTACHED:
Attachment 1 – Revised 2022 Port of Richmond Tariff FMC No. 3 Attachment 2 – California Association of Port Authorities Docket Proposal Attachment 3 – Email from California Association of Port Authorities Docket Proposal Attachment 4 – Resolution 2022