Los Angeles World Airports
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1 Los Angeles World Airports TM RESOLUTION NO LAX LA/Ontario Van Nuys City of Los Angelos Eric Garcetti Mayor Board of Airport Commissioners Sean 0. Burton President Valeria C. Velasco Vice President Jeffery J. Daar Gabriel L. Eshaghian Beatrice C. Hsu Nolan V. Rollins Dr. Cynthia A. Telles Deborah Hint Chief Executive Officer BE IT RESOLVED that the Board of Airport Commissioners approved First Amendment to Agreement DA-4846 with Tom Bradley International Terminal Equipment Company for payment to provide custodial services in designated areas of Tom Bradley International Terminal at Los Angeles International Airport to extend the term three (3)-years, and add $6,024,250 for total funds not to exceed $14,434,250, as referenced in the Board-adopted staff report attached hereto and made part hereof; and BE IT FURTHER RESOLVED that the Board of Airport Commissioners authorized the Chief Executive Officer to execute said First Amendment upon approval as to form by the City Attorney; and BE IT FURTHER RESOLVED that this action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; and BE IT FURTHER RESOLVED that actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 373. o0o I hereby certify that this Resolution No is true and correct, as adopted by the Board of Airport Commissioners at its Special Meeting held on Wednesday, July 20, c Sandra J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS 1 World Way Los Angeles California Mail BO. Box Los Angeles California Telephone Internet
2 $ Los Angeles World Airports IteB Nupber ho; Report to the BOARD OF AIRPORT COMMISSIONERS Meeting Date: Approved by: Dave Jones, director,' Airline Property and Concession Services Reviewed by:, Debbie Bowers, Deputy Executive Director 12 tzr ' * City Attorney leborah RHrit - Chief Executive Officer CAP Review: 7/20/2016 Completed Pending N/A Reviewed for Date Approval Status fix Capital Budget 7/5/16 $3Y N NA NE Operating Budget CEQA Procurement 7/5/16 BYD N DNA RW (»/M jib n tt lk BY N H7 DN Cand tn\ l^m Guest Experience 7/7/16 X0VDN BY SUBJECT: First Amendment to the Agreement for Payment of Services with Tom Bradley International Terminal Equipment Company Approve the First Amendment to the Agreement for Payment of Services with Tom Bradley International Equipment Company for custodial services in designated areas of Tom Bradley International Terminal at Los Angeles International Airport to extend the term by three years to a total of six years and increase the contract amount by $6,024,250, to a total of $14,434,250. RECOMMENDA TIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines. APPROVE the proposed First Amendment to the Agreement for Payment of Services with Tom Bradley International Equipment Company for custodial services in designated areas of Tom Bradley International Terminal at Los Angeles International Airport. AUTHORIZE the Chief Executive Officer to execute the proposed First Amendment to the Agreement for Payment of Services with Tom Bradley International Terminal Equipment Company after approval as to form by the City Attorney. Page 1 TBITEC Custodial Board Report (DHJ)
3 DISCUSSION: 1. Purpose Allow the airline consortium, Tom Bradley International Terminal Equipment Company (TBITEC), to continue providing custodial services in designated areas of Tom Bradley International Terminal (TBIT). 2. Prior Related Actions 3. Current Action September 17, Board Resolution No The Board of Airport Commissioners (Board) approved Lease and License Agreement LAA-8600 with TBITEC to maintain certain aeronautical equipment and systems, including baggage systems, jet bridges and other airline related equipment in TBIT and related areas (Lease). May 7, Board Resolution No The Board approved a First Amendment to the Lease to: a) extend the term of the agreement from five years to ten years; b) allow additional aeronautical equipment to be maintained and additional services to be provided at TBIT, Terminal 2, and other airport areas; and c) enhance maintenance requirements for aeronautical equipment. September 11, Board Resolution No The Board approved an Agreement for Payment of Services (DA-4846) for the payment of services to TBITEC to provide custodial services in certain areas of TBIT (Agreement). June 27, Board Resolution No The Board approved the Second Amendment to the Lease to add space and the maintenance and operation of aeronautical equipment in Terminal 3 at Los Angeles International Airport (LAX). The Lease allows Los Angeles World Airports (LAWA) to enter into payment contracts to assign tasks to TBITEC, including custodial services. Prior to the opening of the new areas of TBIT in 2013, the international airlines requested that LAWA assign responsibility for custodial services in these areas to TBITEC. The Agreement requires TBITEC to use reasonable commercial efforts to obtain at least three bids prior to requesting approval from the Chief Executive Officer to hire any contractors, and compensates TBITEC only for direct costs incurred without administrative fees or profit. The international airlines have requested to continue to provide these services. The proposed First Amendment to the Agreement will allow TBITEC to continue to provide these services by extending the term three years to a total of six years and increasing the contract amount by $6,024,250, to a total of $14,434,250. Page 2 TBITEC Custodial Board Report (DHJ)
4 Action Requested Staff requests the Board approve the First Amendment to the Agreement and authorize the Chief Executive Officer to execute the First Amendment after approval as to form by the City Attorney and approval by the City of Los Angeles City Council. 4. Fiscal Impact This request will allow TBITEC to continue providing custodial services in designated areas of TBIT for a total cost of $14,434,242 over the six (6) year term. Costs will be recovered through terminal rates and charges. 5. Alternatives Considered Do not approve the First Amendment Failure to approve the First Amendment will prevent TBITEC from cleaning these common areas as the international airlines have requested. APPROPRIATIONS: Funding for this proposed First Amendment is included in the Fiscal Year LAWA Operating Budget under LAX Cost Center Real Estate Services, Commitment Item Contractual Services. Amount to be compensated to TBITEC is expected to be approximately $2,304,742 in the first Fiscal Year, but will not to exceed $14,434,242 over the extended term. Funds for subsequent fiscal years will be requested as part of the annual budget process. STANDARD PROVISIONS: 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. This action is subject to approval as to form by City Attorney. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 373. This action is not subject to the provisions of the Service Contractor Worker Retention and Living Wage Ordinances. This action is not subject to the provisions of the SBE Program This action is not subject to the provisions of the Affirmative Action Program. This action does not require a Business Tax Registration Certificate. 8. This action is not subject to the provisions of the Child Support Obligations Ordinance. 9. This action is not subject to the insurance requirements of the Los Angeles World Airports. Page 3 TBITEC Custodial Board Report (DHJ) doc
5 10. This action is not subject to the provisions of City 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 the Bidder Contributions CEC Form 55. Page 4 TBITEC Custodial Board Report (DHJ) doc
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