BOARD OF AIRPORT COMMISSIONERS

Transcription

1 á BOARD OF AIRPORT COMMISSIONERS 0-4"1 LOS ANGELES WORLD AIRPORTS - CITY OF LOS ANGELES MINUTES Of the meeting of the Board of Airport Commissioners of the City of Los Angeles convened in Special Open Session in the Samuel Greenberg Board Room No. 107 in the Clifton A. Moore Administration Building at Los Angeles International Airport, #1 World Way, Los Angeles, California on Thursday, June 18, 2015 at 9:30am. The Agenda for said meeting was posted for public reference on the outside bulletin board and at the front lobby of the Department of Airports, Clifton A. Moore Administration Building, #1 World Way, Los Angeles, California on Monday, June 15, 2015 at 8:26am, and on the websites of both the Department of Airports at http: / / and the City of Los Angeles at http: / /lacity.org. The meeting was televised by Channel 35 for viewing after the meeting, and was also monitored by Council Phone. PRESENT: Gabriel L. Eshaghian Jackie Goldberg Beatrice C. Hsu Matthew M. Johnson Cynthia A. Telles Valeria C. Velasco Sean O. Burton Gina Marie Lindsey Stephen Martin Wei Chi Roger Johnson Samson Mengistu Dominic Nessi David Shuter Ryan Yakubik Raymond Ilgúnas Sandra Miller Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Board President Executive Director Chief Operating Officer Deputy Executive Director Deputy Executive Director Deputy Executive Director Deputy Executive Director Deputy Executive Director Chief Financial Officer General Counsel Secretary As a covered entity under Title Il of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services and activities. JUNE 18, :30am

2 . Guidelines; I. GENERAL COMMENTS FROM THE PUBLIC 1. Marjorie Pelegrin (Unite Here) - General Comment 2. Carmen Morales (Unite Here) - General Comment 3. Francisco Meza (Unite Here) - General Comment 4. Miguel Jauregui (Unite Here) - General Comment 5. Deacon Robert Vazquez (CLUE) - General Comment Commissioner Jackie Goldberg requested staff to agendize an item regarding the results of the Bureau of Contract Administration's audit of The Flying Group at the next meeting. Il. APPROVAL OF MINUTES The Board approved the presented Minutes of June 4, 2015 (1:00pm & 2:30pm) and carried the following votes: Moved by: Commissioner Eshaghian Seconded by: Commissioner Velasco Ill. CONSIDERATION OF CONSENT ITEMS The Board consented to Items 1, 2, 4, 5, 6, 8 and 10 of which recommendations were approved: Moved by: Commissioner Eshaghian Seconded by: Commissioner Telles 1. RESOLUTION NO Consent to Assignment of Lease VNA from Home Depot USA, Inc. to First City Pacific and sublease back to Home Depot USA, Inc.: For the premises located at Roscoe Boulevard at Van Nuys Airport Act (CEQA) pursuant to Article Ill Class 1(18)(c) of the Los Angeles City CEQA approve Consent to Assignment of Lease VNA from Home Depot USA, Inc. to First City Pacific and sublease back to Home Depot USA, Inc.; and authorize the Executive Director to execute said Consent to Assignment and associated documents upon approval as to form by the City Attorney. (Debbie Bowers, ) 2. RESOLUTION NO Second Amendment to Lease with Blue Stone Management: To extend the term and an increase in space, at Skyview Center, 6033 West Century Boulevard, adjacent to Los Angeles International Airport, for estimated additional revenue of $211,000 over the remaining thirty (30) -month term

3 Act (CEQA) pursuant to Article III Class 1(18)(c) of the Los Angeles City CEQA Guidelines; further find that the City's competitive bidding restrictions do not apply because use of competitive bidding in this setting would be undesirable within the meaning of Administrative Code Section 10.15(a)(10) because the competitive selection process for this Amendment was conducted by Los Angeles World Airports' (LAWA) property manager for the Skyview property, which property management contract was assigned to LAWA as part of LAWA's purchase of the Skyview property, and subsequently extended; approve the Second Amendment to a Lease with Blue Stone Management to extend the term and increase space at Skyview Center, 6033 West Century Boulevard, yielding an additional $211,000 over the remaining thirty (30) -month term; and authorize the Executive Director to execute said Second Amendment upon approval as to form by the City Attorney. (Debbie Bowers, ) 4. RESOLUTION NO Award a three (3)-year Contract to I.D. Systems & Supplies Co.: For security badge card stock for Los Angeles International Airports, Airport Police Division Security Credential Section, for total cost not to exceed $960,000 Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; approve award of a three (3) -year contract to I.D. Systems & Supplies Co. for the purchase of specialized card stock to produce security badges by Airport Police at Los Angeles International Airport for a total cost not to exceed $960,000; and authorize the Executive Director to execute said contract upon approval as to form by the City Attorney. (Patrick Gannon, ) 5. RESOLUTION NO Award a three (3) -year Contract to Danning, Gill, Diamond & Kollitz, LLP: For legal services to assist Los Angeles World Airports and City Attorney's Office with bankruptcy advice, litigation and other related legal issues, for cost not to exceed $300,000 Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; further find that, pursuant to Charter Section 1022, this work can be performed more economically or feasibly by an independent contractor than by City employees; approve award of a three (3) -year contract to Danning, Gill, Diamond & Kollitz, LLP, for legal services to assist with bankruptcy advice, litigation, and other related legal services for an amount not to exceed $300,000; and authorize the Executive Director to execute said contract upon approval as to form by the City Attorney. (Raymond Ilgunas, ) 6. RESOLUTION NO Trip Fee -Rental Car Concessionaires: For excess trips on the central terminal area roadway at Los Angeles International Airport Act (CEQA) pursuant to Article Ill Class 1(31) of the Los Angeles City CEQA Guidelines; approve a rental car concessionaire Trip Fee of $10 for every Central Terminal Area roadway trip that exceeds the trips allowed by the Trip Management Plan developed pursuant to terms in the rental car concession agreements at Los Angeles International

4 n Airport, effective October 1, 2015; and rescind Resolution No (Ryan Yakubik, ) 8. RESOLUTION NO Fiscal Year 2016 Los Angeles World Airports General Aviation Liability and War & Allied Perils (Terrorism) Insurance Policies: With Underwriter Global Aerospace Insurance for total coverage limits of $1.3 billion and $1 billion, respectively, for a total cost not to exceed $3,162,742 Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; approve the purchase of $1.3 billion limits for the General Aviation Liability Insurance, $1 billion limits of coverage for Terrorism Insurance, for the policy period July 1, 2015 to June 30, 2016 from Underwriter Global Aerospace Insurance, for a total premium cost of $3,162,742 (plus any additionally required State and Federal surplus lines fees and any non -admitted taxes and service fees); further approve a not -to exceed amount for the annual, self- insured retention or deductible payments of up to $500,000 for General Liability/Terrorism and $1 million for off -premises auto per policy period, payable directly to the Underwriter Global Aerospace Insurance and /or the contracted Property Broker (Willis Insurance Services of California, Inc.), by Los Angeles World Airports; and authorize the Executive Director through the Deputy Director and Comptroller to submit the above premiums to the contracted LAWA Property Insurance Broker of Record, Willis Insurance Services of California, which by contact with LAWA, has the authority and responsibility to receive and disburse the premiums to the various participating insurance underwriters on behalf of LAWA. (Wei Chi, ) 10. RESOLUTION NO Award a three (3) -year Contract to Burns & McDonnell: For Airside and Landside Airport Pavement Management System for Los Angeles World Airports, for cost not to exceed $5,480,551 Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; further find that the work can be performed more economically or feasibly by an independent contractor than by City employees; further find that pursuant to Administrative Code Section (a)(10) under the circumstances presented that the professional and technical services sought in this contract are such that the use of competitive bidding would be undesirable; further find that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City's interest; approve award of a three (3) year contract to Burns & McDonnell for Airside and Landside Airport Pavement Management System for Los Angeles World Airports for an amount not to exceed $5,480,551; and authorize the Executive Director to execute said contract upon approval as to form by the City Attorney. (Wei Chi, ) IV. EXECUTIVE DIRECTOR'S REPORTS Development Program Management Update No update provided. Concept Design Options for Midfield Satellite Concourse

5 Executive Director Gina Marie Lindsey, Deputy Executive Director Roger Johnson; Brent Kelley (Corgan) and Terence Young (Gensler) gave a power point presentation and answered various questions from Board members. Executive Management stated their preferred concept was the `Reef'. Generally, the Board was supportive of the "Wave" design concept but understood the practicality of the "Reef' design and expressed interest to incorporate some of the "Reef's" positive elements with the Wave's design. Matthew Ross (Airline Rates & Charges Liaison) - Supportive of the efforts up to today and also stated Airlines' perspective. V. DISCUSSION / AMENDMENT OF REMAINING ITEMS 3. RESOLUTION NO Award a one (1) -year Contract to Clean Energy: For supply and delivery of compressed natural gas for vehicles owned by Los Angeles World Airports at Los Angeles International Airport, for total cost not to exceed $2,031,060 Act (CEQA) pursuant to by Article II Section 2(f) of the Los Angeles City CEQA Guidelines; approve award of a one (1) -year contract to Clean Energy for supply and delivery of compressed natural gas for vehicles owned by Los Angeles World Airports at Los Angeles International Airport for an amount not to exceed $2,031,060; and authorize the Executiye Director to execute said contract upon approval as to form by the City Attorney. (David Shuter, ). Moved by: Seconded by: Absent: Commissioner Goldberg Commissioner Eshaghian Commissioners Eshaghian, Goldberg, Hsu, Johnson, Telles and Commissioner Velasco Deputy Executive Director Dave Shuter answered Board members questions. 7. RESOLUTION NO Fiscal Year 2016 Los Angeles World Airports General All -Risk Property /Casualty and Earthquake Perils Insurance Policies: With Underwriter Lexington Insurance Company for total coverage limits of $2.5 billion and $25 million, respectively, for a total cost not to exceed $4,252,072 Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; approve the purchase of $2.5 billion limits for the General All -Risk Property Insurance, $25 million in Earthquake, Wind, Flood coverage and $250 million of Boiler and Machinery coverage, for the policy period July 1, 2015 to June 30, 2016 from Underwriter Lexington Insurance, for a total premium cost of $4,252,072 (plus any additionally required State and Federal surplus lines fees and any non -admitted taxes and service fees); further approve the total anticipated annual, self- insured retention or deductible payments of $100,000 per claim with an estimated aggregate loss total of $500,000 per annual policy period, payable directly to the Underwriter Lexington Insurance and /or the

6 - 6 - contracted Property Broker (Kaercher Campbell and Associates Insurance Brokerage) by Los Angeles World Airports; and authorize the Executive Director though the Deputy Director and Comptroller to submit the above premiums to the contracted LAWA Property Insurance Broker of Record, Kaercher Campbell and Associates Insurance Brokerage, which by contact with LAWA, has the authority and responsibility to receive and disburse the premiums to the various participating insurance underwriters on behalf of LAWA. (Wei Chi, ) Moved by: Commissioner Goldberg Seconded by: Commissioner Eshaghian Risk Manager Bruce Brown answered Board member's questions. 9. RESOLUTION NO Three (3) -year Contract with Air Transport IT Services Inc.: To continue a Maintenance and Support License Agreement for the PROPworks Revenue Agreement Management and Invoicing System for a cost not to exceed $375,000 Act (CEQA) pursuant to Article III Class 1(18)(c) of the Los Angeles City CEQA Guidelines; approve the execution of a software license agreement for Fiscal Years 2016, 2017, and 2018 with Air Transport IT Services, Inc., a sole provider in the industry, for Los Angeles World Airports' (LAWA) PROPworks Revenue Agreement Management and Invoicing System, in an amount not to exceed $375,000; further find that the contract is exempt from competitive bidding under Sections 371(e)(3) and 371(e)(7) of the Los Angeles City Charter. Section 371(e)(3) provides an exemption for contracts for the furnishing of articles covered by letters patent granted by the government of the United States. Section 371(e)(7) provides an exemption for contracts for equipment repairs or parts obtained from the manufacturer of the equipment or its exclusive agent. Air Transport IT Services, Inc. retains proprietary and intellectual property rights to the licensed PROPworks software used by LAWA, and as such, Air Transport IT Services, Inc. is the only authorized provider of software maintenance and support; and authorize the Executive Director to execute said Software License Agreement upon approval as to form by the City Attorney. (Wei Chi, ) Moved by: Commissioner Goldberg Seconded by: Commissioner Eshaghian Deputy Executive Director Wei Chi answered Board member's questions. 11. RESOLUTION NO Award two (2) separate three (3) -year Contracts to Gensler and Ricondo and Associates, Inc.: For Airport Planning Professional Services to support various architectural, passenger terminal planning and related

7 projects for Los Angeles World Airports, for annual costs not to exceed $1,470,000 and $1,120,000, respectively Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; further find that the work can be performed more economically or feasibly by an independent contractor than by City employees; further find that pursuant to Administrative Code Section (a)(10) under the circumstances presented that the professional and technical services sought in the contract are such that the use of competitive bidding would be undesirable; further find that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City's interests; approve award of two (2) separate three (3) -year contracts to Gensler and Ricondo and Associates, Inc. for Airport Planning Professional Services for airport planning professional services, with one (1) -year appropriation of funds in the amounts of $1,470,000 and $1,120,000, respectively; and authorize the Executive Director to execute said contracts upon approval as to form by the City Attorney. (Cynthia Guidry, ) Moved by: Commissioner Eshaghian Seconded by: Commissioner Johnson Deputy Executive Director Cynthia Guidry answered Board member's questions. 12. RESOLUTION NO No Early Turn" Policy at Van Nuys Airport: For all departing fixed wing aircraft to reduce aircraft noise for nearby communities RECOMMENDATIONS: Adoption of the Resolution requesting that the Board of Airport Commissioners adopt the "No Early Turn" Policy for all departing fixed wing aircraft to reduce aircraft noise for nearby communities and authorize the Executive Director to implement said policy. (Cynthia Guidry, ) Moved by: Seconded by: Commissioner Eshaghian Commissioner Telles Commissioners Eshaghian, Goldberg,,Hsu, Johnson, Telles, Velasco and Deputy Executive Director Cynthia Guidry and Environmental Manager Scott Tatro, gave a power point presentation and answered Board member's questions. Don Schultz (VNY/Citizen Advisory Council member) gave general comments as well stating that the Council supports this policy. c!;

8 13. RESOLUTION NO Agreement with Los Angeles Department of Water and Power: To execute Agreement WR for design and construction of a recycled water pipeline at Los Angeles International Airport for cost not to exceed $690,000 Act (CEQA) pursuant to Article III Class 3(9) of the Los Angeles City CEQA Guidelines; approve the Agreement No. WR between Los Angeles World Airports and the City of Los Angeles Department of Water and Power for design and construction of recycled water pipeline at Los Angeles International Airport; and authorize the Executive Director to execute Agreement WR upon approval as to form by the City Attorney. (Cynthia Guidry, ) Moved by: Seconded by: Commissioner Goldberg Commissioner Velasco Deputy Executive Director Cynthia Guidry gave a power point presentation and answered Board member's questions. 14. RESOLUTION NO Fiscal Year 2016 Landing Fees and Other Charges for Los Angeles International Airport: And various rates and fees for estimated revenue of $242,000,000 Act (CEQA) pursuant to Article Ill Class 1(31) of the Los Angeles City CEQA Guidelines; approve the schedule of Fiscal Year rates and charges at Los Angeles International Airport for Fiscal Year , effective July 1, 2015 through June 30, 2016, as detailed in the board report; rescind Resolution 25448; and adopt the resolution for Fiscal Year 2016 Los Angeles International Airport Landing Fees. (Ryan Yakubik, ) Moved by: Commissioner Seconded by: Commissioner Chief Financial Officer Ryan Yakubik answered Board member's questions. 15. RESOLUTION NO Fiscal Year 2016 Landing Fees and Terminal Rents for LA/Ontario International Airport: That will generate approximately $29,800,000 in revenue; and authorization to file an Impose and Use a Passenger Facility Charge Application for said airport n

9 Act (CEQA) pursuant to Article Ill Class 1(31) of the Los Angeles City CEQA Guidelines; approve the schedule of Fiscal Year 2016 rates and charges at LA/Ontario International Airport effective July 1, 2015 as detailed in the board report; rescind Resolution 25449; authorize the submittal of an Impose and Use Passenger Facility Charge Application in accordance with 14 CFR Part 158 with the Federal Aviation Administration at LA/Ontario International Airport; and adopt the resolution for Fiscal Year 2015 LA/Ontario International Airport Landing Fees and Terminal Rents. (Ryan Yakubik, ) Moved by: Seconded by: Commissioner Hsu Commissioner Eshaghian Chief Financial Officer Ryan Yakubik answered Board member's questions. 16. RESOLUTION NO First Amended and Restated Food & Beverage and Retail Concession Agreements with Areas USA LAX, LLC (LAA -8546, LAA -8547, LAA- 8548); Hudson -Magic Johnson Enterprises- Concourse Ventures, LLC (LAA ); LAX Retail Magic 2 JV (LAA- 8551); LAX Retail Magic 3-4 JV (LAA -8552, LAA ); DN Dakota /JME LAX 8549 Pucks (LAA -8549) and XpresSpa LAX Airport, LLC (LAA- 8543): To extend the terms through June 30, 2023 at Los Angeles International Airport and to make technical adjustments, for estimated additional revenue of approximately $25 million, and approve an assignment of a concession agreement Act (CEQA) pursuant to Article III Class 1(18)(c) of the Los Angeles City CEQA Guidelines; approve consent to assignment of Agreement LM-8549 from THS/ Marbella Food Service Partnership IV to DN Dakotá /JME LAX 8459 Pucks, LLC as referenced in the board report; further approve first amended and restated concession agreements with Areas USA LAX, LLC (LM-8546, LAA -8547, LM-8548); Hudson -Magic Johnson Enterprises- Concourse Ventures, LLC (LAA- 8550); LAX Retail Magic 2 JV (LM-8551); LAX Retail Magic 3-4 JV (LAA -8552, LM-8542); DN Dakota /JME LAX 8549 Pucks (LAA ) and XpresSpa LAX Airport, LLC (LM-8543), as referenced in the board report; and authorize the Executive Director to execute said Amended and Restated Concession Agreements and consent to assignment upon approval as to form by the City Attorney and approval by the Los Angeles City Council. (Debbie Bowers, ) Moved by: Seconded by: Commissioner Eshaghian Commissioner Johnson Chief Operating Officer Steve Martin answered Board members questions.

10 17. RESOLUTION NO First Amended and Restated Food & Beverage Concession Agreements with DN Dakota /JME LAX 8589 Farmers, LLC (LAA- 8589), CMS Hospitality LLC (LAA-8587) and Host International (LAA- 8586): To make technical adjustments at Los Angeles International Airport Act (CEQA) pursuant to Article Ill Class 1(18)(c) of the Los Angeles City CEQA Guidelines; approve consent to assignment of Agreement LM-8587 from CMS Camacho Ventures to CMS Hospitality, LLC and Agreement LAA from DNCTHS /M /D Food Group to DN Dakota /JME LAX 8589 Farmers, LLC as referenced in the board report; further approve the following Amended and Restated Concession Agreements with: DN Dakota /JME LAX 8589 Farmers, LLC (LAA- 8589), CMS Hospitality LLC (LM-8587) and Host International (LAA- 8586), as referenced in the board report; and authorize the Executive Director to execute said Amended and Restated Concession Agreements and consents to assignment upon approval as to form by the City Attorney and approval by the Los Angeles City Council. (Debbie Bowers, ) Moved by: Commissioner Eshaghian Seconded by: Commissioner Johnson Chief Operating Officer Steve Martin answered Board member's questions. 18. RESOLUTION NO. - Appropriate funds to Lease LAA with Delta Air Lines, Inc.: To acquire improvements in Terminal 5 at Los Angeles International Airport, contemplated in the First Amendment to the Amended and Restated Terminal Facilities Lease, in the amount of $195,100,000 Act (CEQA) pursuant to Article Ill Class 1(18)(c) of the Los Angeles City CEQA Guidelines, and appropriate funds in the amount of $195,100,000 to acquire terminal improvements contemplated in the First Amendment to the Amended and Restated Terminal Facilities Lease with Delta Air Lines, Inc. (Debbie Bowers, ) stated the item was being deferred. 19. RESOLUTION NO Determine the salary for Executive Director Deborah Ale Flint RECOMMENDATIONS: Adoption of the Resolution requesting that the Board of Airport Commissioners determine the salary for Executive Director Deborah Ale Flint. (Samson Mengistu, ) gave background information on setting the salary of the Executive Director. He recommended that Executive Director Deborah Ale Flint's salary be set at $330, 000. Commissioner Hsu made a motion to establish the Executive Director's yearly salary at $330, 000; seconded by

11 Commissioner Telles and it was unanimously approved (Eshaghian, Goldberg, Hsu, Johnson, Telles, Velasco and ). 20. RESOLUTION NO Flint Approval of relocation costs: In the amount not to exceed $55,000 for Executive Director Deborah Ale Flint RECOMMENDATIONS: Adoption of the Resolution requesting that the Board of Airport Commissioners approve the relocation costs, in the amount not to exceed $55,000 for Executive Director Deborah Ale Flint. (Samson Mengistu, ) Moved by: Commissioner Eshaghian Seconded by: Commissioner Johnson 0Oo At this time, wished to acknowledge retiring Executive Director Gina Marie Lindsey by showing a video tribute. Each Commissioner spoke of their feelings and the tremendous leadership that Ms. Lindsey had during her tenure as executive director of Los Angeles World Airports. On behalf of Mayor Eric Garcetti, Deputy Mayor Kelli Bernard spoke of Gina Marie's accomplishments and presented a Congratulatory- Retirement Plaque to Ms. Lindsey. Ms. Lindsey gave brief comments expressing praise and gratitude to her executive team and for the commission's support. 0Oo

12 VI. ADJOURNMENT There being no further business,, with the unanimous consent of the Board, ordered the Meeting adjourned at 12:35pm. ATTEST: PRESIDENT NOTE: A complete tape /video recording of this Meeting, excluding closed session, has been made and is on file as a public record in the office of the Secretary of the Board of Airport Commissioners. The tape is a public record in accordance with the California Public Records Act (Sections of the Government Code). JUNE 18, :30am