Los Angeles World Airports

Transcription

1 Los Angeles World Airports fm June 26, 2013.AX la/ontario Van Nuys City of Los Angeles Antonio R, vmereigcea Mayor Soard of Airport Commissioners Michael A. Lawson President Valeria C. Velasco Vice President Joseph A. Aredas Robert D. Beyer Ann M. Hollister Raul Perez Fernando M. torres-au Gina Marie Lindsey Executive Director The Honorable City Council of the City of Los Angeles City Hall, Room 395 Los Angeles, CA Subject: APPROVAL OF FIFTH AMENDMENT TO CONCESSION AGREEMENT WITH AIRPORT CONNECTION, INC., DBA ROADRUNNER SHUTTLE, FOR OPERATION OF SHARED RIDE VAN SERVICE TO AND FROM LOS ANGELES INTERNATIONAL AIRPORT. In accordance with Section 606 of the City Charter, the Board of Airport Commissioners transmits for your approval the Fifth Amendment to Concession Agreement with Airport Connection, Inc., dba Roadrunner Shuttle, to increase circuit fees and to extend and amend the term for operation of shared-ride van service to and from Los Angeles International Airport. RECOMMENDA TION FOR CITY COUNCIL 1. APPROVE the Fifth Amendment to Concession Agreement with Airport Connection, Inc., dba Roadrunner Shuttle. 2. CONCUR in the Board's action authorizing the Executive Director to execute the Fifth Amendment to Concession Agreement with Airport Connection, Inc., dba Roadrunner Shuttle. 3. FIND that this action is exempt from the California Environmental Quality Act (CEQA) ~~_~~~~~~~_Rursuant to Article I Class 1(18)fc;) of the Los Angeles City CEQA Guidelines. The Board of Airport Commissioners, at their meeting held on May 21, 2013, by Resolution No approved the Fifth Amendment to Concession Agreement with Airport Connection, Inc., dba Roadrunner Shuttle, subject to the approval of your Honorable Body is attached. There is no fiscal impact to the City's General Fund as a result of this action. 1 World Way Los Angeles California Mall eo. Box Los Angeles Caurornta 'relepnone 3: Internet

2 Los Angeles City Council June 26, 2013 Page 2 CONCLUSION Please return the attached Fifth Amendment with Airport Connection, Inc" dba Roadrunner Shuttle, to the Department of Airports' Board Office after City Council approval and Certification of that approval. Very truly yours,..~ //" ~ Sandr",Miller - Commission Executive Assistant BOARD OF AIRPORT COMMISSIONERS cc: Trade, Commerce and Tourism Committee Councilmember LaBonge, E-file Council member Rosendahl, E-file Council member Buscaino, E-file CAO (Airport Analyst), E-file CLA (Airport Analyst), E-file City Clerk's Office, Enc. (one original and one copy)

3 Los Angeles World Airports RESOLUTION NO BE IT RESOLVED that the Board of Airport Commissioners approved the Fifth Amendment LAX to Non-Exclusive Concession Agreement No. LM-8214 with Airport Connection, Inc., dba WOn"". Roadrunner Shuttle, to increase circuit fees and to extend and amend the contract term for \Ian Nnys operation of shared-ride van service to and from Los Angeles International Airport for a Cily et Lcs Ange!es period not to exceed one (1)-year with an additional one (1)-year extension option, as referenced on the board report attached herein and made part hereof; and Antonio R. vtllerejgosa Mayor Soard of Airport Commissioners Michael A. lawson President Valeria C. Velasco Vice President Joseph A. Aredas Robert D. Beyer BE IT FURTHER RESOLVED that the Board of Airport Commissioners authorized the Executive Director or designee to execute said Fifth Amendment approval as to form by the City Attorney and upon approval as to form by the City Council; and BE IT FURTHER RESOLVED that issuance of agreements, amendments or extensions thereof, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article I Class 1(18)(c) of the Los Angeles City CEQA Guidelines; and Am> M dho M 'Ii,,'" G.' BE IT FURTHER RESOLVED that actions taken on this item by the Board of Airport remen 0. ones- I Commissioners will become final pursuant to the provisions of Los Angeles City Charter Gina~arie ~indsey Section 606. Executive Director 000 I hereby certify that this Resolution No is true and correct, as adopted by the Board of Airport Commissioners at its Regular Meeting held on Tuesday, May 21, r- ~d Sandra J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS 1. World Way Los Angeles ccuronua Mail f?o.box 9221G Los 1\lIgele;; Calif()rnii,l 9Q009-;{) 16 Telephone 310 Gl1G 52~S2 Internet \'/ww,18w[1,<lcro

4 oooooomm 0,..... : ":.', :...:.,..'. BOARD Meeting Date: Approved anagement May 21, Completed Reviewed by: CAOReview: ISJ Pending ::?\'?,C; 0 N/A // '('J{\. / 'e I;J Reviewed for Date A{2Qroval Status fu! Capital Budget 04/19/13 Ill!YDNDNA OS Operating Budget 05/03/13 Ill!YDNDNA RW CEOA 04/24/13 Ill!YDN AE Procurement 05/02113 Ill! YON 0 GoodMT SUBJECT: Amendment to Contract with Airport Connection Inc" dba Roadrunner Shuttle, for Operation of LAX Shared-Ride Van Service Approve the Fifth Amendment to Non-Exclusive Concession Agreement LAA~8214 with Airport Connection, Inc., dba Roadrunner Shuttle, to increase circuit fees and to extend and amend the contract term for operation of shared-ride van service to and from Los Angeles International Airport for a period not to exceed one-year with an additional one-year extension option. RECOMMENDA TlONS: o 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 I, Class 1(18)(c) 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. FIND that the use of a competitive proposal process is not desirable, practical or advantageous as Los Angeles World Airports will be releasing a competitive bid process pursuant to Los Angeles City Charter Section 371 (e)(10). 5. APPROVE the Fifth Amendment to Non-Exclusive Concession Agreement No. LAA-8214 with Airport Connection, Inc. dba Roadrunner Shuttle, at Los Angeles International Airport to increase circuit fees and extend and amend the contract term for a period not to exceed one-year with oneyear extension option. Roadrunner Page 1 Shuttle s" Amendment

5 6. AUTHORIZE the Executive Director or her designee to execute the Fifth Amendment to Concession Agreement No. LAA-8214 with Airport Connection, Inc., dba Roadrunner Shuttle, upon approval as to form by the City Attorney. DISCUSSION: 1. Executive Summary Los Angeles World Airports (LAWA) currently has a Non-Exclusive Concession Agreement LAA (Agreement) with Airport Connection Inc., dba Roadrunner Shuttle (Roadrunner), for the operation of a shared-ride van (SRV) service to and from Los Angeles International Airport (LAX). This contract expires on July 31, Staff requests Board of Airport Commissioners (Board) approval to 1) increase the existing circuit fees by 10% and 2) extend the term for a period of one-year with an additional one-year extension option. The extension will allow sufficient time to complete a competitive bid process for SRV services at LAX and also resolve airport-wide ground access and curbside capacity challenges. 2. Prior Related Actions On July 19, 2004, the Board approved award of an Agreement with Roadrunner (Board Order No. AO-4915) to provide SRV services at LAX for a five-year term from August 1, 2004 through July 31,2009. On June 22, 2009, the Board approved the First Amendment to the Non-Exclusive Concession Agreement with Roadrunner (Board Order No. AO-5132) to extend the term twelve months. On June 28, 2010, the Board approved the Second Amendment to the Non-Exclusive Concession Agreement with Roadrunner (Board Order No. AO-5169) to extend the term for twelve months. ----en-.jtlne~0;-2()1-1,tlge-b0afs-appf0veq-t-he-']:l:1ird-~mel"ldmenuo-the~qn.. xclusjy_e~c_ounc",e":,s",,s,,"ioojn,---_~ Agreement with Roadrunner (Board Resolution No ) to extend the term for six months. _ On November 7,2011, the Board approved the Fourth Amendment to the Non-Exclusive Concession Agreement with Roadrunner (Board Resolution No ) to extend the term for eighteen months. The current Agreement expires on July 31, Current Action Purpose of Extension This Amendment will provide staff with additional time to complete a competitive bid process for SRV services at LAX. Also, staff requires additional time to resolve ground access and curbside capacity issues at LAX, taking into account the future development of an Intermodal Transportation Facility, the scarcity of curb space relative to current demand, and the potential for single level busing. Page 2 R08cifunner Shuttle Sih Amendment

6 Staff recently completed an in-depth analysis of SRV services at LAX and also bench marked comparable airports' SRV programs. The results of that analysis and the resolution of curbside allocation challenges, described above, will inform the structure of the SRV program going forward (i.e., establishment of fees, curbside privileges, and fleet size parameters). Additionally, the alternative fuel component of the SRV program is under review due to the long distance nature of SRV service. Terms of Amendment The Amendment will extend the term one-year with an additional one-year option that may be executed by the Executive Director. The Amendment also requires a 10% increase to SRV fees for each circuit (i.e. trip) around the Central Terminal Area. Fees will increase from $5.00 to $5.50 for the first two sequential circuits, and from $20.00 to $22.00 for the third. Background on Current SRV Program Currently, SRV service is provided at LAX via three concession agreements: SuperShuttle: Prime Time: Roadrunner: Full-Service Operator Full-Service Operator Long-Distance Operator Full-Service Operators differ from the Long-Distance Operator as follows: Full-Service Operators are given dedicated inner curb space at each terminal and pay LAWA a minimum annual guarantee (MAG) based on fleet size. The Long-Distance Operator primarily serves the Ventura County market, is exempt from paying a MAG and shares outer curb space with other non-srv ground transportation providers. Staff expects new SRV contracts will be presented to the Board in July Board approve the Fifth Amendment to LAA Staff requests the 4. Alternatives Considered Take No Action The current Agreement expires on July 31, Taking no action will terminate the existing agreement and result in a disruption of SRV service at LAX and an approximate annual LAWA revenue loss of $1.9 million (this includes the current three shared-ride van operators). Use Existing Staff LAWA, based on a Charter Section 1022 determination, does not have the staff or resources required to provide SRV services at LAX. FISCAL & ECONOMIC IMPACT STATEMENT: Approval of this item will allow Roadrunner to continue operations at LAX under the same financial terms as the current Agreement which will provide LAWA an approximate annual revenue of $118,000. This action will have no impact on either LAWA's Operating or Capital budgets. Page 3 Roadrunner Shuttle Sh Amendment

7 STANDARD PROVISIONS: 1. Issuance of agreements, amendments or extensions thereof, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article I, Class 1(18)(c) of the Los Angeles City CEQA Guidelines. 2. This item is subject to approval 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 Roadrunner Shuttle is required by contract to comply with the provisions of the Living Wage/Service Contractor Worker Retention Ordinances. 5. Procurement Services Division has reviewed this action and previously determined that the Disadvantaged Business Enterprise (DBE) Program applies only to full service concessions. Long Distance Carriers are not required to participate in the DBE Program. As Roadrunner Shuttle is a long distance carrier, it is not subject to the provisions of the DBE Program. 6. Roadrunner Shuttle is required by contract to comply with the provisions of the Affirmative Action Program. 7. Roadrunner Shuttle has been assigned Business Tax Registration Certificate number Roadrunner Shuttle is required by contract to comply with the provisions of the Child Support Obligations Ordinance. 9. Roadrunner Shuttle has approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports l10...ihijlacliq.d_ls_oqj_sjipject to the grovisions Contractors). of Charter Section 1022 (Use of Independent 11. Roadrunner Shuttle has submitted the Contractor Responsibility Program Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. Roadrunner Shuttle has been determined by Public Works, Office of Contract Compliance to be in compliance with the provisions of the Equal Benefits Ordinance. 13. Roadrunner Shuttle will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs. 14. Roadrunner Shuttle must submit the Bidder Contributions CEC Form 55 and comply with its provisions prior to execution of the Amendment. Page 4 Roadrunner Shuttle Eft. Amendment

8 FIFTH AMENDMENT TO CONCESSION AGREEMENT LAA-8214 BETWEEN THE CITY OF LOS ANGELES AND AIRPORT CONNECTION, INC. DBA ROADRUNNER SHUTTLE COVERING PASSENGER STAGE SHARED RIDE VAN SERVICES TO AND FROM. LOS ANGELES INTERNATIONAL AIRPORT THIS FIFTH AMENPMENT ("Fifth Amendment") to Concession Agreement LAA-8214, made and entered into this day of, 2013, by and between the CITY OF LOS ANGELES, a municipal corporation, acting by order of and through its Board of Airport Commissioners ("Board") of the Department of Airports also known as Los Angeles World Airports or LAWA ("City"), and AIRPORT CONNECTION, INC. DBA ROADRUNNER SHUTTLE ("Concessionaire"). RECITALS WHEREAS, City and Concessionaire entered into Concession Agreement LAA dated December 20, 2004 for passenger stage shared ride van services ("Concession Agreement") to and from Los Angeles International Airport ("Airport"); and WHEREAS, City and Concessionaire further amended Concession Agreement on July 31, 2009, July 27, 2010, July 12, 2011 and December 22, 2011 ("Fourth Amendment"); and WHEREAS, City and Concessionaire desires to further amend the Concession Agreement. NOW, THEREFORE, in consideration of the terms, covenants, and conditions hereinafter contained to be kept by the respective parties hereto, IT IS MUTUALLY AGREED that Concession Agreement No. LAA-82 14, be further amended as follows: Section 1. Section 4, "Term", of the Concession Agreement and SectIOn 1of1lie Fourth Amendment shall be deleted in its entirety and replaced with the following: "Section 4. Term. The Term of this Concession Agreement shall commence on August 1,2004 and terminate on July 31,2014 with one (I) additional one-year option to be exercised in writing at the sole discretion of the Executive Director or hislher designee (collectively referred to as "Executive Director"); subject, however, to earlier termination, or suspension as provided herein. Either party may terminate this Concession Agreement, with or without cause, upon giving the other sixty (60) days advance written notice." Section 2. Section 5, "Compensation to City", Subsection (b), "Circuit Fees", of the Agreement is hereby deleted and replaced with the following: "(b) Circuit Fees. Concessionaire agrees to pay to City per circuit fees from the transportation of passengers from andlor originating from Airport, or the Shared Ride Van 5~'Amendment 1 Airport Connection, Inc. dba Roadrunner Shuttle HJS/

9 offering of same if such fees exceed the minimum annual guarantee above. Vans will pay Five Dollars and Fifty Cents ($5.50) per circuit for the first two circuits or partial circuits of the Airport central terminal area lower level, and Twenty- Two Dollars ($22.00) per circuit for any subsequent circuits or partial circuits of the Airport central terminal area lower level. City reserves the tight to reduce the number of permitted circuits. City also reserves the right to adjust the amounts of the per-circuit fee annually. Circuit fees will be based on the records of the City's Automatic Vehicle Identification (AVI) system and will be billed monthly." Section 3. The following shall be added to the Concession Agreement as Section 27: "Section 27. Compliance with Los Angeles City Charter Section 470(c)(12) The Contractor, Subcontractors and their Principals are obligated to fully comply with City of Los Angeles Charter Section 470(c)(l2) and related ordinances, regarding limitations on campaign contributions and fundraising for certain elected City officials or candidates for elected City office if the contract is valued at $100,000 or more and requires approval of a City elected official. Additionally, Contractor is required to provide and update certain information to the City as specified by law. Any Contractor subject to Charter Section 470(c)(12) shall include the following notice in any contract with a subcontractor expected to receive at least $100,000 for performance under this contract: "Notice Regarding Los Angeles Campaign Contribution and Fundraising Restrictions As provided in Charter Section 470(c)(12) and related ordinances, you are subcontractor on City of Los Angeles contract #. Pursuant to City Charter Section 470(c)(12), subcontractor and its principals are prohibited from making campaign contributions and fundraising for certain elected City officials or candidates for elected City office for 12 months after the City contract is ~~~~~~~~~~-=sl~ gn-=ed::;:.=;;s:=u;-:bc-=o~n::;tr-=a~c~to-==-r I:S requiteclto provicleto contractor names andaaaresses of~~~~~~the subcontractor's principals and contact information and shall update that information if it changes during the twelve (12) month time period. Subcontractor's information included must be provided to contractor within five (5) business days. Failure to comply may result in termination of contract or any other available legal remedies including fines. Information about the restrictions may be found at the City Ethics Commission's website at or by calling " 27.2 Contractor, subcontractor and their Principals shall comply with these requirements and limitations. Violation of this provision shall entitle the City to terminate this Agreement and pursue any and all legal remedies that may be available." Section 4. Except as specifically provided herein, this Fifth Amendment shall not in any manner alter, change, modify, or affect any of the rights, privileges, duties, or obligations of either of the parties hereto under or by reason of said Concession Shared Ride Van 5 th Amendment 2 Airport Connection, Inc. dba Roadrunner Shuttle HJSIOS-08-13

10 Agreement, and except as expressly amended herein, all of the terms, covenants, and conditions of said Concession Agreement LAA-82 14, as amended, shall remain in full force and effect. [signatnre page follows 1 Shared Ride Van 5 th Amendment Airport Connection, Inc. dba Roadrunner Shuttle HJS/

11 IN WITNESS WHERE, City has caused this Fifth Amendment to Concession Agreement LAA-8214 to be executed by the Executive Director of its Department of Airports, and Concessionaire has caused the same to be executed by its duly authorized officers, all as of the day and year frrst hereinabove written. APPROVED AS TO FORM: Carmen A. Trutanich, City Attorney Date_...:<;:=/-I'-"?-...:l3f~'-'I~~~ By ~ ~ ~~ ~~ Deputy/Assistant City Attorney ATTEST: _ CITY OF LOS ANGELES By ~~~~~~ Executive Director Department of Airports AIRPORT CONNECTION, INC. dba ROADRUNNER SHUTTLE Print Name By ~ Sig:;;;e pesr-to.vff-c-uci2,j Print Name ~ Print Title Print Title Shared Ride Van 5 lh Amendment Airport Connection, Inc. dba Roadrunner Shuttle HJSI