November 7, 2023
Economic Development
DATE: November 7, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nannette Beacham, Director of Economic Development
Lizeht Zepeda, Senior Business Assistance Office
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 other revenue, which will
increase the Port’s overall operating revenues. Last
year’s increase was a two percent (2%) general rate
increase, and this year’s proposed six and two-tenths
percent (6.2%) general rate increase will keep the Port competitive with other ports in the Bay Area.
PREVIOUS COUNCIL
ACTION:
October 18, 2022
STATEMENT OF THE
ISSUE:
The Port of Richmond is seeking a six and two-tenths
percent (6.2%) general rate increase (GRI) to 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, 2023. The Port of Richmond will maintain a
competitive position in relation to the other California West Coast ports, while maximizing revenues and
staying competitive.
RECOMMENDED ACTION: ADOPT a resolution to amend the Port of Richmond FMC Tariff No. 3 reflecting a six and two-tenths percent (6.2%) general rate increase (GRI) to the Port of Richmond
Federal Maritime Commission (FMC) Tariff No. 3 and an
annual Consumer Price Index (CPI) rate adjustment as
approved by the Executive Committee of the California
Association of Port Authorities (CAPA) – Economic
Development Department (Lizeht Zepeda 510-620-6653).
AGENDA
REPORT
November 7, 2023
DISCUSSION:
Since 2015, the California Association of Port Authorities (CAPA) Executive Director drafts a Letter of Memorandum (Attachment 5) each year to the Committee on Tariffs and Practices (Executive Committee) to consider a General Rate Increase (GRI). This policy, allowing all ports in the State of California, a Consumer Price Index for All Urban Consumers (CPI-U) change for the twelve-month period ending in December of each year. This policy allows for ports to stay competitive. Member ports of CAPA include:
the ports of Humbolt, Los Angeles, Long Beach, San Diego, Hueneme, Redwood City, West Sacramento, San Francisco, Oakland, Stockton, and Richmond.
Ports in the Executive Committee approved the port’s Federal Maritime Commission (FMC) Tariffs and the annual Consumer Price Index (CPI) rate adjustment. The GRI is applied on July 1 of each year, or in accordance with fiscal calendars.
The Port of Richmond submitted a docket proposal GRI (Attachment 2) to the CAPA Executive Committee on June 20, 2023. The docket proposal includes a six and two- tenths percent (6.2%) GRI to the Port’s Federal Maritime Commission (FMC) tariff number three (Attachment 1) and an annual CPI rate adjustment. The port of Richmond docket was unanimously approved by CAPA members (Attachment 3) on the same date.
The next step is to have the City Council approve a resolution (Attachment 4) amending the annual 2023 tariff increase. The Port will generate additional vessel dockage, wharfage, storage, and other revenue, which will increase the Port’s overall operating revenues. Last year’s increase was a two percent (2%) general rate increase, and this year’s proposed six and two-tenths percent (6.2%) general rate increase will keep the Port competitive with other ports in the Bay Area. Any tariffs due between July 1, 2023 through November 7, 2023 will be retroactively assessed the appropriate six and two- tenths percent (6.2%) GRI.
DOCUMENTS ATTACHED:
Attachment 1 - Revised 2023 Port of Richmond Tariff FMC No. 3 Attachment 2 - California Association of Port Authorities Docket Proposal Attachment 3 - Email from CAPA Approved Docket Proposal with Table Attachment 4 - Resolution 2023
Attachment 5 - CAPA CPI-U 2023 Memo