DISCUSSION: October 7, Resolution No The Board approved a Consent to Assignment of ground Lease LAA from GFS to IAC Gateway LLC.

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Depp 411 N I BOARD F A Approved qy: Ted Mas f, 01 Los Angeles World Airports REPORT TO THE t RT COMMISSIONERS ' / Meeting Date: : Director 9/4/2014!i i :1ii)cr r.: /, dill A.

Bowers, Dept i Executive Director CAO Review: 1 D 1 Completed Pending N/A / rive Reviewed for Date Approval Status By tto y <t C%, 991 Marie Lindsey - Executive Director Capital Budget 6/18/2014 MY N

2 to U. S. Department of Homeland Security Lease No.

1 Depp 411 N I BOARD F A Approved qy: Ted Mas f, 01 Los Angeles World Airports REPORT TO THE t RT COMMISSIONERS ' / Meeting Date: : Director 9/4/2014!i i :1ii)cr r.: /, dill A.!A Ala Reviewed by: Debile L. Bowers, Dept i Executive Director CAO Review: 1 D 1 Completed Pending N/A / rive Reviewed for Date Approval Status By tto y <t C%, 991 Marie Lindsey - Executive Director Capital Budget 6/18/2014 MY N NA DS Operating Budget 6/ xy N NA RW CEQA 6/18/2014 Y N _ MV Procurement 7/7/2014 l7y ON Cond MT SUBJECT: Amendment to Lease with U.S. Department of Homeland Security Approve Supplemental Lease Agreement No. 2 to U. S. Department of Homeland Security Lease No to extend Customs and Border Protection occupancy at La Cienega Boulevard at Los Angeles International Airport through September 30, 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 Ill, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines. 3. APPROVE the proposed Supplemental Lease Agreement No. 2 to U. S. Department of Homeland Security Lease No to extend the Customs and Border Protection occupancy and use of a 57,849 square foot customs facility at La Cienega Boulevard at Los Angeles International Airport until September 30, AUTHORIZE the Executive Director or his /her designee to execute the U.S. Department of Homeland Security, Supplemental Lease Agreement No. 2 to Lease No upon approval as to form by the City Attorney. Page 1

DISCUSSION: 1. Purpose Allow U.S. Customs and Border Patrol (CBP) to continue providing federal inspection services for international cargo at the current customs facility at Los Angeles International Airport (LAX).

Current Action March 10, 1992 - Board Order AO -4331 The Board of Airport Commissioners (Board) approved a 40 -year ground lease (LAA- 7168) with GFS Airport Center LP (GFS) at 11099 South La Cienega

2 DISCUSSION: 1. Purpose Allow U.S. Customs and Border Patrol (CBP) to continue providing federal inspection services for international cargo at the current customs facility at Los Angeles International Airport (LAX). 2. Prior Related Actions 3. Current Action March 10, Board Order AO The Board of Airport Commissioners (Board) approved a 40 -year ground lease (LAA- 7168) with GFS Airport Center LP (GFS) at South La Cienega Boulevard for the purpose of GFS developing a mixed -use business park including a customs facility for CBP. Concurrent with the ground lease, Los Angeles World Airports (LAWA) entered into a facility lease with GFS for a 57,849 square -foot customs facility through the term of the ground lease which expires June 8, LAWA then subleased this space to CBP (Sublease). This sublease was initially for only 20 years and will expire September 30, September 9, Board Order AO The Board approved Supplemental Lease Agreement No. 1 to provide direct payment from U.S. Customs Service to Peck/Jones Construction Corp. for alterations not to exceed $100,000. October 7, Resolution No The Board approved a Consent to Assignment of ground Lease LAA from GFS to IAC Gateway LLC. March 1, Resolution No The Board approved a Consent to Assignment of ground Lease LAA from IAC Gateway to AMB Partners II LAX, LLC. LAWA provides leased space at La Cienega Boulevard to CBP which allows them to provide federal inspection services to air carriers transporting international cargo through LAX. LAWA leases the space from AMB for approximately $2,500,000 per year and then recovers these costs from the air carriers. The proposed Supplemental Lease Agreement No. 2 will allow CBP to continue its inspection services at this location through September 30, The following table summarizes the terms: Page 2

(Sublease) Supplemental Lease Agreement No. 2 U.S. Government Department of Homeland Security Lease No. 727-91 -3405 Existing Proposed Term Commencement October 1, 1993 No change Term Expiration Sept.

2 to Lease 727-91 -3405 to extend the term for customs facility at 11099 La Cienega Boulevard through September 30, 2017 and authorize the Executive Director to execute that document upon approval as

3 (Sublease) Supplemental Lease Agreement No. 2 U.S. Government Department of Homeland Security Lease No Existing Proposed Term Commencement October 1, 1993 No change Term Expiration Sept. 30, 2014 September 30, 2017 Office Space 57,849 SF No change Action Requested Staff requests the Board approve the U.S. Department of Homeland Security Supplemental Lease Agreement No. 2 to Lease to extend the term for customs facility at La Cienega Boulevard through September 30, 2017 and authorize the Executive Director to execute that document upon approval as to form by the City Attorney. Fiscal Impact There is no fiscal impact for this action. 4. Alternatives Considered Take No Action This space is required by CBP for its operations at LAX. If this action is not approved, CBP will not have the space required to process international cargo inspections beyond September 30, 2014 and LAWA will not recover its lease costs. APPROPRIATIONS: No appropriations are required for this action. STANDARD PROVISIONS: 1. The issuance of permits, leases, agreements, gate and space assignments, and renewals, amendments or extensions thereof, or other entitlements granting use of existing airport facilities or its operations is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article Ill, 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 245. Page 3

4. This action is statutorily exempt from the provisions of the Living Wage /Service Contractor Worker Retention Ordinances. 5. This action is not subject to the provisions of the SBE Program. 6.

This action is not subject to the provisions of the Child Support Obligations Ordinance. 9. As a governmental agency, U. S. Department of Homeland Security is self- insured. 10.

4 4. This action is statutorily exempt from the provisions of the Living Wage /Service Contractor Worker Retention Ordinances. 5. This action is not subject to the provisions of the SBE Program. 6. This action is not subject to the provisions of the Affirmative Action Program. 7. This action does not require a Business Tax Registration Certificate number. 8. This action is not subject to the provisions of the Child Support Obligations Ordinance. 9. As a governmental agency, U. S. Department of Homeland Security is self- insured. 10. This action is not subject to the provisions of Charter Section 1022 (Use of Independent Contractors). 11. This action is not subject to the provisions of the Contractor Responsibility Program. 12. This action is not subject to the provisions of the Equal Benefits Ordinance. 13. This action is not subject to the provisions of the First Source Hiring Program. 14. This action is not subject to the provisions of Bidder Contributions CEC Form 55. Attachments: Location / Site Maps Page 4

5 ri t 2 SITE: La Cienega Custom's Facility Page 5

vccy Los Angeles World Airports RESOLUTION NO

vccy Los Angeles World Airports RESOLUTION NO Los Angeles World Airports FM RESOLUTION NO. 25871 LAX LA/Ontario Van Nuy* City of Los Angeles Eric Garcetti Mayor Board of Airport Commissioners Sean 0. Burton President Valeria C. Veiasco Vice President