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1 Date Los Angeles W orld Airports Report to the BOARD OF AIRPORT COMMISSIONERS Rrìiter TY/ ---",/, Approved by: Su an McTigue -S:-fr,Y r Management Analyst II 411r RéViewed-br-- arydy - Directorli P _ lic and Media Relations Meeting Date: CAO Review: May 21, 2013 LI I Com pleted 1 Pending 1 N/A City Att (e-- 6:Li Reviewed for 1 e Aoloroval Status gy' 0 Y N El NA Capital Budget i 02/22113 /Of Operating Budget / i 03/01/13 IS] Y N NA CEQA i 02/22/13 0 Y El N tina Marie Lindsey - Executive Di - ctor Procurement 1 03/01/13 Y N Cond DS RW ES JPA SUBJECT: First Amendment to: Contract DA-4786 with The Phelps Group (DBA Phelps), Contract DA-4787 with AdEase, Inc, and Contract DA-4788 with Nothing Films, Inc Approve First Amendments to three contracts to change contract terms to one year with two one-year renewal options and reduce contract authority commensurately: Contract DA-4786 with The Phelps Group (DBA Phelps) for Public Education and Communication Services, reduced to $625,000; Contract DA-4787 with AdEase, Inc for Media Buying Services, reduced to $550,000; and Contract DA-4788 with Nothing Films, Inc for Video Production Services, reduced to $290,000 RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1 ADOPT the Staff Report 2 DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2f of the Los Angeles City CEQA Guidelines 3 FIND that the work can be performed more economically or feasibly by an independent contractor than by City employees 4 APPROVE the First Amendment to Contract DA-4786 with The Phelps Group (DBA Phelps), to Contract DA-4787 with AdEase, Inc, and to Contract DA-4788 with Nothing Films, Inc 5 AUTHORIZE the Executive Director to execute the amendments after approval as to form by the City Attorney Page 1 PhelpsAdEaseNothing Contract Amencirnentsdoc

2 DISCUSSION 1 Executive Summary Los Angeles World Airports (LAWA) staff recommends the Board of Airport Commissioners approve amendments to three contracts awarded on January 14, 2013 for Public Education Communication services at Los Angeles International Airport (LAX): Contract DA-4786 with The Phelps Group (DBA Phelps), Contract DA-4787 with AdEase, Inc, and Contract DA-4788 with Nothing Films, Inc The amendments will reduce contract authority and change contract terms from three years to one year with two one-year renewal options, so that the Board may annually evaluate the services provided 2 Prior Related Actions On January 14, 2013 (Resolution No 25017) the Board approved three contracts for Public Education Communications services: Contract DA-4786 with Phelps for program development and implementation, Contract DA-4787 with AdEase for media buys, and Contract DA-4788 with Nothing Films for video production services On February 5, 2013, through Resolution No 25023, the Board requested staff to renegotiate each contract and change its term from three years to one year with two one-year renewal options 3 Current Action The Board recently approved three contracts to develop and implement LAX Modernization Public Education Communication Services The contracts, with Phelps, AdEase, and Nothing Films, are integral to our comprehensive multi-year coordinated effort to create a strategic communications and outreach plan (including benchmarks and timeline), social media strategy, and content (print, video and audio) that will deliver a consistent cohesive message to manage brand perception and connect with target audiences in a meaningful capacity across all media vehicles All three of the companies understand the message and vision must be delivered in a compelling way with timely and relevant updates, while effectively communicating the many disruptions taking place during the modernization process The selected companies will work together as a team to inform the community, the traveling public, stakeholders, elected leaders, and the regional business and industry market about LAX Modernization projects and resulting impacts The team will use an Integrated Marketing approach to deliver impactful campaigns, and track and measure results The Phelps Group understands that managing effective messaging calls for cohesive oversight of the process through strategy, working closely with contractors responsible for in-terminal and wayfinding messaging at LAX, media buying, and video and audio production The contracts were subjected to a Los Angeles City Charter Section 245 motion by the City Council Based on discussions with Council members, staff recommended to the Board, and the Board so directed, that the contracts be amended from three-year contracts to one-year contracts with two one-year renewal options This will give the Board an annual opportunity to assess the value of the public communications initiative and services received Page 2 PhelpsAdEaseNothing Contract Arnendmentadoc

3 The contracts with all three firms were renegotiated in accordance with the Board's direction, and their contract amounts reduced to cover only one year of services New contract amounts are as follows: Contract # Firm Old Contract Amount New Contract Amount DA-4786 Phelps $1,625,000 $ 625,000 DA-4787 MEase $1,550, ,000 DA-4788 Nothing Films Totals $3,865,000 $1,465,000 No other changes to terms or conditions were made Staff requests the Board approve the recommended contract amendments to Contract DA-4786 with The Phelps Group (DBA Phelps), Contract DA-4787 with Ad Ease, Inc, and Contract DA-4788 with Nothing Films, Inc Procurement Services reviewed this project and established a 20% combined Minority/Women Business Enterprise level of participation for the Public Education and Communication Program element The Phelps Group (DBA Phelps) committed to a 16% combined MIWBE level of participation 4 Alternatives Considered Not Amend the Contracts The Board could choose not to amend the contracts In that case, they would remain three-year contracts as originally approved, with the original contract amounts FISCAL & ECONOMIC IMPACT STATEMENT: Contract authority and funding allocations will be reduced to reflect only the first contract year's costs, for a total amount not to exceed $1,465,000 Funding per contract for Year 1 is as follows: Phelps Group, $625,000; AdEase, Inc, $550,000; and Nothing Films, $290,000 Staff will request contract authority and funding allocation for Years 2 and 3 when these contracts are brought back to the Board for review Approval of this action will have no impact on the Los Angeles World Airports Capital Budget STANDARD PROVISIONS 1 This action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2f of the Los Angeles City CEQA Guidelines 2 The contract amendments will be approved as to form by the City Attorney 3 Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 245 Page 3 PhelpsAdEaseNothing Contract Amendmentadoc

4 4 This action is statutorily exempt from the provisions of the Living Wage/Service Contractor Worker Retention Ordinances 5 Procurement Services reviewed this action (File No ) and established a 20% combined Minority/Women Business Enterprise level of participation for the Public Education and Communication Program element of this project The Phelps Group (DBA Phelps) committed to 16% combined M/WBE levels of participation 6 The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc are required by contract to comply with the provisions of the Affirmative Action Program 7 The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc have been assigned Business Tax Registration Certificate Nos ; ; The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc are required by contract to comply with the provisions of the Child Support Obligations Ordinance 9 The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc must have approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports prior to execution of the Amendment 10 Pursuant to Charter Section 1022, staff determined the work specified on this contract can be performed more feasibly and economically by Independent Contractors than by City employees 11 The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc have submitted the Contractor Responsibility Program Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program 12 The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc must be determined by Public Works, Office of Contract Compliance to be in compliance with the provisions of the Equal Benefits Ordinance prior to execution of Contract Amendment 13 The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs 14 The Phelps Group (DBA Phelps), Ad Ease, Inc, & Nothing Films, Inc have submitted the Bidder Contributions CEC Form 55 and will comply with its provisions Page 4 PhelpsAdEaseNothing Contract Amendrnentsdoc

5 SUBCONTRACTOR PARTICIPATION PLAN Page 1 Project Title: I -',iati5der/petiiposeiteoliewinfo011ationill PROEifiliiEtiailAtiditrMtk, 136/PnifittkiSIWAmciONTIII::I17»,::a,DESCRiPTION OP:PROJECTSERVICEs The Phelps Group GROUP: 901 Wilshire Blvd CRY/STATE/ZIP: Santa Monica, CA GENDER: CONTACT Ed Chambliss CERTIFYING AGENCY: $625,000 TELEPHONE Na x128 ED@PtElPsftnamcom VENDOR OR FEDERAL ID: NAICS:,g14:806CóirtgaditiiTCeiiiraiiii4ifOtif*Aitiag4;ra NErraftrAINkEsiker PadiiiiSed :I3911IllkIiiiittaitria DESCihiriloMORPROJEcTISERAnces- " Young Communications Group GROUP: MWBE Advertising agencies, public relations 672 S La Fayette Park Place Suite 1429 B CITY/STATE/ZIP Los Angeles, CA GENDET F 3% $18,750 CONTACT Gwendolyn W Young TELEPHONE NO: CERTIFYING AGENCY: Supplier Clearinghouse C VENDOR OR FEDERAL ID: NAICS: 7311,8743 DDK Communications GROUP: WBE 1,,---- Public Relations agency, dber setvices ADDRESS' 5152 Katella Ave, Ste, 205 Erman: C related to advertising, marketing consulting CRYISTATEIZIP- Los Alamitos CA GENDER: F 11% seivices $68,750 CONTACT Dotty Die mer CERTIFYING AGENCY: TELEPHONE No: NA1C , , BAIL VENDOR OR FEDERAL ID: 8 IW GROUP GROUP: MBE - public relations agencies, advertising 8687 Melrose Ave, 5th Floor ETHNICRY: A agencies OW/STATE/ZIP West Hollywood CA GENDER: M $31,250 CONTACT Bill Imada 5% CERTIFYING AGENCY: SCMBDC TELEPHONE No: NAICS: , BAIL VENDOR OR FEDERAL ID: Arevalo Sanchez Inc GROUP: 06E 3321 Via San Delano an/state/zip" Montebello CA GENDER: CONTACT Helen Sanchez TELEPHONE No: CERTIFYING AGENCr $31,250 5% VENDOR OR FEDERAL ID: NAICS: CONTACT TELEPHONE No: GRCUP: ETHNICITy: CERTIFYING AGENCY: VENDOR OR FEDERAL ID: NAICS: Rnised 2111/13

6 SUBCONTRACTOR PARTICIPATION PLAN Page 2,:-:-:ISORPOWtRaiR;, NF f?::r:0fenpmr!*rdn :::AP:i00,Stbi:f,vAil2MOPtitED4,:,!,-;Lipastolpoottipptcotot,GNRnOtS[»- ::-y GRouP: EB1NICtry: CITYISTATEiZIP: SENDER: CONTACT WE: CERTMING AGENCY: TELEPHONENO: EMIL: VENDOR OR FEDERAL ID: NAIQS; GRoup: ETHNOTT: orasivrtizip Gthibei:- CONTACT CERDFY1NG AGENCY: TELEPHONE NO: VENDOR OR FEDERAL ID: NAICS: NMIE GROUP: CITYISTATEIZIP: GENDER; CONTACT CERliFfING AGENCY: TELEPHONE No: EmAt: \0130a ORFEDERAL ID: HMOS: GROUP: arrigratemp: GENDER: CONTACT NAME CERTIPING AGENCY; TELEPHONE NO: WNDOR OR FEDERAL ID: NAICS: I certify under the penalty of pe4ury&at the information contained on this knn is tme and coned and that the finns listed are the subconhactorsthat will be utilized if this contract is awarded to the above prime contractor I agree to comply with any appireabie provisions foradditions and substitutions, and I further understand and agree that any and all changes or subsfitutions must be authorized by LAWA Procurement Senricet Division priorto their implementation Participation Level proposed by BidderProposer Ito % El SEE taia/wbe 0 DBE ACDBE vapt, tua -rnt Level of Participation stated in the Roguest for Bid/Proposal: % Rniseumri3 SBE 0 MIWBE 0 DBE ACDBE Ed Charnbliss Chief Operating Officer x128 NAME TITLE PHONE