TRADE, TRAVEL, AND TOURISM COMMITTEE. Tuesday, November 21, 2017 ROOM 1060, CITY HALL - 2:00 PM 200 NORTH SPRING STREET, LOS ANGELES, CA 90012

Transcription

1 TRADE, TRAVEL, AND TOURISM COMMITTEE Tuesday, November 21, 2017 ROOM 1060, CITY HALL - 2:00 PM 200 NORTH SPRING STREET, LOS ANGELES, CA MEMBERS: COUNCILMEMBER JOE BUSCAINO, CHAIR COUNCILMEMBER MIKE BONIN COUNCILMEMBER PAUL KREKORIAN (John A. White - Legislative Assistant - (213) or john.white@lacity.org) Click here for agenda packets Note: For information regarding the Committee and its operations, please contact the Committee Legislative Assistant at the phone number and/or address listed above. The Legislative Assistant may answer questions and provide materials and notice of matters scheduled before the City Council. Sign Language Interpreters, Communication Access Real-Time Transcription (CART), Assistive Listening Devices, or other auxiliary aids and/or services may be provided upon request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting/event you wish to attend. Due to difficulties in securing Sign Language Interpreters, five or more business days notice is strongly recommended. For additional information, please contact the Legislative Assistant listed above. MULTIPLE AGENDA ITEM COMMENT GENERAL PUBLIC COMMENT ITEM NO. (1) Chief Executive Officer, Los Angeles World Airports (LAWA), to report relative to the status of Department operations, finances, capital improvement projects, public safety and security, planning, technology, marketing/promotions, and other activities, pursuant to Motion (Buscaino - Bonin). Fiscal Impact Statement Submitted: No Community Impact Statement: None submitted ITEM NO. (2) Tuesday - November 21, PAGE 1

2 Verbal report from the Chief Innovation and Technology Officer, LAWA, relative to the Department s new web-site. ITEM NO. (3) TIME LIMIT: ; LAST DAY FOR COUNCIL ACTION: Communication from the Board of Airport Commissioners and City Administrative Officer (CAO) report relative to Resolution No for the First Amendment to Terminal Facility Lease and License Agreement LAA with Delta Air Lines, Inc., for space in Terminals 2 and 3 at Los Angeles International Airport to reallocate project costs; and, Administrative Exemption from CEQA requirements as provided in Article II, Section 2(f) of the Los Angeles City CEQA Guidelines. Fiscal Impact Statement Submitted: Yes Community Impact Statement: None submitted ITEM NO. (4) TIME LIMIT: ; LAST DAY FOR COUNCIL ACTION: Communication from the Board of Airport Commissioners and the CAO to report relative to Resolution No for the contract with Dooley Enterprises, Inc., for ammunition for the Airport Police Division at a cost not to exceed $1,000,000 and for a term of five years; and, Administrative Exemption from CEQA requirements as provided in Article II, Section 2(f) of the Los Angeles City CEQA Guidelines. Fiscal Impact Statement Submitted: Yes Community Impact Statement: None submitted ITEM NO. (5) The Committee may recess to Closed Session, pursuant to Government Code Section (d)(2)(e)(2), to confer with its legal counsel relative to the City of El Segundo California Environmental Quality Act (CEQA) appeal of LAWA s Landside Access Modernization Program Environmental Impact Report and El Segundo s threat to file a CEQA writ in Superior Court. Fiscal Impact Statement Submitted: No Community Impact Statement: None submitted Tuesday - November 21, PAGE 2

3 ITEM NO. (6) TIME LIMIT: ; LAST DAY FOR COUNCIL ACTION: Communication from the Board of Harbor Commissioners and CAO report relative to Port Resolution authorizing the Project Labor Agreement (No ) between the Port of Los Angeles and the Los Angeles / Orange Counties Building and Construction Trade Council; and, Administrative Exemption from CEQA requirements in accordance with Article Il, Section 2(f) of the Los Angeles City CEQA Guidelines. Fiscal Impact Statement Submitted: Yes Community Impact Statement: None submitted If you challenge this Committee's action(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at or prior to, the public hearing. Any written correspondence delivered to the City Clerk before the City Council's final action on a matter will become a part of the administrative record. Materials relative to items on this agenda can be obtained from the Office of the City Clerk's Council File Management System, at lacouncilfile.com by entering the Council File number listed immediately following the item number (e.g., ). Tuesday - November 21, PAGE 3

4 MOTION TRADE, TRAVEL AND TOURISM As the fourth busiest airport in the world, the Los Angeles World Airports (LAWA) serves tens of millions of passengers every year, offers hundreds of daily nonstop flights, processes billions of dollars of cargo tonnage annually, and is a major economic driver of the region by generating hundreds of thousands of jobs and billions of dollars in revenues. In addition to managing its daily operations, LAWA is in the midst of a major terminal construction and renovation project, and a multi-billion dollar modernization program. It is an important lime for the City Council to slay informed, particularly as LAWA continues to burgeon during these next several years. As Section 242(b) of the Los Angeles City Charter states: The duty of the Council and its committees is to become fully informed of the business of the City so as to oversee all the functions of the City government, and to report to the Council any information or recommendations necessary to enable the Council to properly legislate. It is also pertinent for certain updates to be shared and directly presented by the lead executive of LAWA. I THEREFORE MOVE that the City Council request the Chief Executive Officer of Los Angeles World Airports to provide quarterly reports to the Trade, Travel, and Tourism Committee on the status of department activities, which may include but not be limited to: operations, finances, capital improvement projects, public safety and security, planning, technology, and marketing/promotions. PRESENTED BY: JOE BUSCAINO Couneilmember, 151'1 District c n30 E# AUO 0 4 2Q]j SECONDED BY: 7 mk Tuesday - November 21, PAGE 4

5 Los Angeles World Airports TM November 15, 2017 The Honorable City Council of the City of Los Angeles City Hall, Room 395 Los Angeles, CA APPROVE THE FIRST AMENDMENT TO TERMINAL FACILITY LEASE AND LICENSE AGREEMENT LAA-8939 WITH DELTA AIR LINES, INC. Subject: LAX Van Nuys Eric Garcetti Mayor Pursuant to Section 606 of the City Charter, enclosed for your approval is the First Amendment to Terminal Facility Lease and License Agreement with Delta Air Lines, Inc., which was approved at the November 2, 2017 meeting of the Board of Airport Commissioners. There is no impact to the General Fund. Board of Airport Commissioner* RECOMMENDATIONS FOR CITY COUNCIL: Sean 0. Burton President 1. Adopt the determination of the Board of Airport Commissioners (Board) that the proposed action is administratively exempt from the California Environmental Quality Act (CEQA) as provided in Article II Section 2(f) of the Los Angeles City CEQA Guidelines. 2 Approve the First Amendment to Terminal Facility Lease and License Agreement LAA8939 with Delta Air Lines, Inc. for space in Terminals 2 and 3 at Los Angeles International Airport. 3. Concur with the Board s action of November 2, 2017 by Resolution No authorizing the Chief Executive Officer, Los Angeles World Airports, to execute the First Amendment to Terminal Facility Lease and License Agreement LAA-8939 with Delta Air Lines, Inc. for space in Terminals 2 and 3 at Los Angeles International Airport. City of Los Angolas Valeria C. Velasco Vice President Jeffery J. Daar Gabriel L. Eshaghian Beatrice C. Hsu Thomas S. Sayles Dr. Cynthia A. Telles. Deborah Flint Chief Executive Officer Very truly yours, c Sandra J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS cc: Trade, Travel and Tourism Committee Councilmember Buscaino, E-file Councilmember Bonin, E-file Councilmember Krekorian, E-file CAO (Airport Analyst), E-file CLA (Airport Analyst), E-file City Clerk s Office, E-file ml 1 World Way Tuesday Los Angeles California Mail PO. Box Los Angeles California - November 21, Telephone Internet PAGE 5

6 11/16/17 (Ana Guerrero) Tuesday - November 21, PAGE 6

7 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: To: From: Reference: Subject: November 16, 2017 CAO File No.: Council File No.: ~uncil District: 11 The Mayor /-;] _" n Q_ )S ~---- ~ 7 Richard H. Llewellyn, Jr., Interim City Administrative p ttic r Communication from the Department of Airports date\t_jtober 31, 2017; referred by the Mayor for report on November 1, 2017 REQUEST TO EXECUTE THE FIRST AMENDMENT TO TERMINAL FACILITY LEASE AND LICENSE AGREEMENT WITH DELTA AIR LINES, INC. FOR SPACE IN TERMINALS 2 AND 3 AT THE LOS ANGELES INTERNATIONAL AIRPORT RECOMMENDATIONS That the Mayor: SUMMARY 1. Approve the proposed First Amendment to Terminal Facility Lease and License Agreement LAA-8939 between the Los Angeles World Airports (LAWA) and Delta Air Lines Inc. for space in the Los Angeles International Airport Terminals 2 and 3 and reallocation of approved project costs for the acquisition by LAWA of improvements made by Delta Airlines to Terminals 2 and 3 as part of the May 2017 airlines move, subject to compliance with the City's Standard Provisions for Contracting, including the Living Wage and Service Contractor Worker Retention Ordinances, the Affirmative Action Program, Child Support Obligations Ordinance, Contractor Responsibility Program, First Source Hiring Program for all non-trade LAX Airport jobs, and City Attorney approval as to form; 2. Authorize the Chief Executive Officer to execute the First Amendment to the Terminal Facility Lease and License Agreement; and, 3. Return the proposed Amendment to the Department for further processing, including Council consideration. The Chief Executive Officer of the Los Angeles World Airports (LAWA; Department) requests authority to execute the First Amendment to an approximately 23-year (September 1, 2016 to April 30, 2039) Terminal Facility Lease and License Agreement with Delta Air Lines, Inc. (Delta) for the use of space in Terminals 2 and 3 at the Los Angeles International Airport (LAX). The revised lease terms will become effective subsequent to the Council's approval of the proposed Amendment. Over a six-day period between May 12 and May 17, 2017, Delta Air Lines, LAWA, and approximately Tuesday - November 21, PAGE 7

8 GAO File No PAGE 2 20 affected airlines implemented a move which included significant improvements to various airport terminals at LAX. The move, which was historic in its scope and complexity, was undertaken to accommodate the relocation of airlines between Terminals 2, 3, 5, 6, and the Tom Bradley International Terminal with provisions for connecting the sites to the future Automated People Mover. An initial allocation of $305 million was made by LAWA to reimburse Delta for costs associated with non-proprietary terminal improvements and relocation of the airlines involved in the move as follows: $134,750,000 in cash paid to Delta, plus $110,250,000 in rent credits forterminal2 and 3 (T2/3) Airline Improvements, and $60,000,000 in rent credits that will be provided to Delta, over a four-year period, as reimbursement for relocation costs. The following table reflects the reimbursement and proposed reallocation of costs for Delta's T2/3 non-proprietary terminal improvements and airlines relocation: DELTA AIR LINES, INC. LAW A'S PURCHASE OF AND REIMBURSEMENT FOR LAX T2/31MPROVEMENTS AND AIRLINE RELOCATIONS Cate o Ori inal Lease Terms Amendment Reallocations T2/3 Airline Improvements:.. Add Scope for Gae Realignment and Electrical Work $134,750,000 $110,250,000 -=$;;;=~ Airline Relocations $60,000, ~~==*=~-- To1al LAWA Acquisitions $305' 000' 000 $86,400,000 $18,000,000 $104,400,000 $57,600,000 $143,000,000 $305,000,000 The proposed First Amendment will ( 1) reallocate appropriations for the acquisition of improvements from future Delta Air Lines projects in LAX Terminals 2 and 3 to current project costs while staying within the cap on allowable acquisition costs, and (2) increase the maximum reimbursement of Delta expenditures by LAWA for the May 12 to May 17, 2017 relocation of airlines by $83,000,000, from the original $60,000,000 to $143,000,000. The Amendment's proposed changes result from an accelerated airline relocation schedule (from over 10 weeks to less than 10 days). In addition, the move included a broader scope of work than what was originally planned in order to ensure equivalency of accommodations between the previous and the new locations for the affected airlines. All other lease provisions remain unchanged. The Department's initial intent was to reimburse Delta for its airline relocation costs up to the currentlyallowable $60 million using rental credits issued over a four-year period. To save approximately $44 million in accrued interest, LAWA is requesting authority to reimburse Delta in cash for airline relocation costs exceeding $60 million up to a maximum of $143,000,000. Additionally, the Department is proposing to purchase the Terminals 2 and 3 improvements with cash not to exceed $57,600,000 rather than through rent credits. By amending the Delta lease for space in Terminals 2 and 3 as proposed, it will result in LAWA's benefitting from new usable and rentable space and physical assets developed and/or installed by Delta in and adjacent to the terminals for which the Department will obtain lease revenue. The proposed First Amendment was approved by the Board of Airport Commissioners at its meeting of November 2, Tuesday - November 21, PAGE 8

9 CAO File No. PAGE FISCAL IMPACT STATEMENT Approval of the proposed First Amendment to Airline Terminal Facility Lease and License Agreement LAA-8939 with Delta Air Lines Inc. and the $305 million allocation to acquire non-proprietary terminal improvements made by Delta will have no impact on the City's General Fund. It will, however, result in reallocating funding from planned temporary upgrades to and refurbishment of LAX Terminals 2 and 3 until such time as the terminals are completely renovated. This action will enable reimbursement for and acquisition of the improvements that were made by Delta as part of its May 2017 LAX airline relocation effort. All Departmental costs for airline relocations and terminal improvements will be recovered through terminal rates and charges. RHL:WDC: Tuesday - November 21, PAGE 9

10 Los Angeles World Airports TM November 15, 2017 The Honorable City Council of the City of Los Angeles City Hall, Room 395 Los Angeles, CA Subject: APPROVE FIVE (5)-YEAR CONTRACT WITH DOOLEY ENTERPRISES, INC. LAX Van Nuys Pursuant to Section 373 of the City Charter, enclosed for your approval is the five (5)-year Contract with Dooley Enterprises, Inc., which was approved at the November 2, 2017 meeting of the Board of Airport Commissioners. There is no impact to the General Fund. City of Los Angola* Eric Garcetti Mayor RECOMMENDATIONS FOR CITY COUNCIL: Board of Airport Commissioners Sean 0. Burton President 1. Adopt the determination of the Board of Airport Commissioners (Board) that the proposed action is administratively exempt from the California Environmental Quality Act (CEQA) as provided in Article II Section 2(f) of the Los Angeles City CEQA Guidelines. 2. Approve the Contract with Dooley Enterprises, Inc. covering supply of ammunition for the Airport Police Division. 3. Concur with the Board s action of November 2, 2017 by Resolution No authorizing the Chief Executive Officer, Los Angeles World Airports, to execute the Contract with Dooley Enterprises, Inc. covering supply of ammunition for Airport Police Division. Valeria C. Velasco Vice President Jeffery J. Daar Gabriel L. Eshaghian Beatrice C. Hsu Thomas S. Sayles Dr. Cynthia A. Telles Deborah Flint Chief Executive Officer Very truly yours, 7 Sandra J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS cc: Trade, Travel and Tourism Committee Councilmember Buscaino, E-file Councilmember Bonin, E-file Councilmember Krekorian, E-file CAO (Airport Analyst), E-file CLA (Airport Analyst), E-file City Clerk s Office, E-file o> ft '1 'i 1 World Way Tuesday Los Angeles California Mail RO. Box Los Angeles California - November 21, Telephone Internet PAGE 10

11 l.os Angdes my TM RESOLUTION NO WHEREAS, on recommendation of Management, there was presented for approval, award of a five (5)-year contract with Dooley Enterprises, Inc. covering supply of ammunition for the Airport Police Division at Los Angeles International Airport, for cost not to exceed $1,000,000; and LAX Van Nwys City of Los Angeles 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 Thomas S. Sayles Dr. Cynthia A. Telles Deborah Flint Chief Executive Officer WHEREAS, Dooley Enterprises, Inc. is the authorized distributor for Winchester ammunition which is required for officers duty weapons, and is essential for the Airport Police Division (APD) training and quarterly firearm qualifications. Additionally, Dooley is the only authorized distributor of Winchester ammunition in Southern California; and WHEREAS, there is no option for substituting the Winchester brand, and to avoid repeating the release of a Request for Bids resulting in one (1) bidder, given Dooley s sole-distributor status, staff recommends that a new sole-source contract be awarded to Dooley. This will ensure continuous capability of acquiring Winchester brand ammunition as required by APD's policy mandate at a pre-determined price; and WHEREAS, Dooley has submitted price quotes that average 4.27% below those in the current contract. The actual expenditures incurred for ammunition during the latest three (3) fiscal years total $529,087. The average annual total is $176,362. Quantities of future purchases will likely increase due to additional officers being trained and deployed to meet projected personnel needs. Due to such history and to accommodate future demand, staff requests an authorization of $200,000 per year and $1,000,000 over the term of the contract. An offset of approximately $2,500 per year for recycled brass will have a nominal impact on these expenditures; and WHEREAS, funds for this contract are available in Fiscal Year Los Angeles World Airports Operating Budget in LAX Cost Center APD Firing Range, Commitment Item Materials & Supplies. Funding for future years will be requested through the annual budget process; and WHEREAS, 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 WHEREAS, this action is not subject to the provisions of the Living Wage/Service Contractor Worker Retention Ordinances; and WHEREAS, Procurement Services Division has reviewed this action (File ). No mandatory Small Business Enterprise and Local Business Enterprise/Local Small Business Enterprise goals were set for this project, as no subcontracting opportunities were identified; and WHEREAS, Dooley Enterprises will comply with the provisions of the Affirmative Action Program; and WHEREAS, Dooley Enterprises has been assigned Business Tax Registration Certificate ; and U \ WHEREAS, Dooley Enterprises will comply with the provisions of the Child Support Obligations Ordinance; and 1 World Way Los Angeles California Mail PO. Box Los Angeles California Telephone Internet Tuesday - November 21, PAGE 11

12 Resolution No WHEREAS, this action is not subject to the insurance requirements of the City of Los Angeles; and WHEREAS, this action is not subject to the provisions of Charter Section 1022 (Use of Independent Contractor); and WHEREAS, Dooley Enterprises has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of said program; and WHEREAS, Dooley Enterprises has been determined by the Public Works, Office of Contract Compliance, to be in full compliance with the provisions of the Equal Benefits Ordinance; and WHEREAS, this action is not subject to the provisions of the First Source Hiring Program; and WHEREAS, Dooley Enterprises has submitted the Bidder Contributions Commission Form 55 and will comply with its provisions; and City Ethics WHEREAS, 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; NOW, THEREFORE, BE IT RESOLVED that the Board of Airport Commissioners determined that this action is exempt from the California Environmental Quality Act requirements; adopted the Staff Report; found that this contract is exempt from competitive bidding under City Charter Section 371 (e)(10); approved award of contract to Dooley Enterprises, Inc. for ammunition purchases for a five (5)-year term beginning December 1, 2017 and ending November 30, 2022, with funding amount up to $200,000 per year and not to exceed $1,000,000 for the term of the contract; and authorized the Chief Executive Officer to execute said contract upon approval as to form by the City Attorney and upon approval by the City Council. ooo 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 Thursday, November 2, Sandra J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS Tuesday - November 21, PAGE 12

13 mm m- A R i I1K.«\ L<. i e^i - mm * w ii i b ijd «5?c:ov VS'iiT-sZ illi'is] 1 ^4*&?, ESS./.. - iti fe I! * : TTTi \ \ \ WLBtk/ s \ <o \ / MICHAEL N. FEUER CITY ATTORNEY REPORT NO. REQUEST FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION (d)(2)(e)(2) RU N0V REPORT RE: SETTLEMENT DISCUSSION CITY OF El SEGUNDO CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) APPEAL REGARDING THE LOS ANGELES INTERNATIONAL AIRPORT (LAX) LANDSIDE ACCESS MODERNIZATION PROGRAM ENVIRONMENTAL IMPACT REPORT (EIR) The Honorable City Council of the City of Los Angeles Room 395, City Hall 200 North Spring Street Los Angeles, California Honorable Members: This Office recommends that discussions with, and advice from, legal counsel regarding the recommendation for City Council action in this anticipated litigation be scheduled and held in closed session pursuant to California Government Code Section (d)(2)(e)(2). Government Code Section (g) requires you to state publicly, prior to the closed session, what subdivision of this section authorizes the closed session and that the closed session is being held to confer or discuss with, or receive advice from, legal counsel regarding anticipated litigation. This matter concerns the City of El Segundo California Environmental Quality Act (CEQA) appeal of the Landside Access Modernization Program (LAMP) Environmental Impact Report (EIR) and El Segundo s threat to file a CEQA writ in Superior Court. City Hall East 200 N. Main Street Room 800 Los Angeles, CA (213) Fax (213) Tuesday - November 21, PAGE 13

14 The Honorable City Council of the City of Los Angeles Page 2 If you have any questions regarding this matter, please contact Deputy City Attorney Timothy Daze at (424) He or another member of this Office will be present when you consider this matter to answer questions you may have. Very truly yours, MIC By 1 y>m. FEUER, City Attorney DAVID MICHAELSON Chief Assistant City Attorney DM:DTD:pj m:\proprietary_occ\airport\reports\el segundo ceqa appeal - public (final).docx Tuesday - November 21, PAGE 14

15 LA THE PORT OF LOS ANGELES Eric Garcetti Board of Harbor Commissioners Eugene D. Seroka 425 S. Palos Verdes Street Post Office Box 151 San Pedro, CA TEL/TDD 310 SEA-PORT Mayor, City of Los Angeles Ambassador Vilma S. Martinez David Arian President Vice President Lucia Moreno-Linares Anthony Pirozzi, Jr. Edward R. Renwick Executive Director November 15, 2017 Honorable Members of the City Council of the City of Los Angeles CD No. 15 Attention: Mr. John White, City Clerk s Office SUBJECT: PROPOSED CITY OF LOS ANGELES HARBOR RESOLUTION NO DEPARTMENT PORT-WIDE PROJECT LABOR AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND THE BUILDING TRADES Pursuant to Section 373 of the City Charter, enclosed for your approval is Resolution No authorizing proposed Agreement No between the City of Los Angeles Harbor Department and Los Angeles/Orange Counties Building and Construction Trade Council (Building Trades); which was approved at the September 7, 2017 meeting of the Board of Harbor Commissioners. A Project Labor Agreement is a single pre-hire labor contract between a construction owner, contractor, and the Building Trades which sets wages and work rules. The proposed Port-wide Project Labor Agreement (POLA-PLA) will serve as a blanket agreement between the Harbor Department and the hired Building Trades to work on selected capital improvement program projects for a term of ten-years. There is no impact to the General Fund. RECOMMENDATION FOR CITY COUNCIL: 1 ADOPT the determination by the Board of Harbor Commissioners (Board) that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(f) of the Los Angeles City CEQA Guidelines; 2. APPROVE Harbor Department Resolution No authorizing proposed Agreement No between the City of Los Angeles Harbor Department and Los Angeles/Orange Counties Building and Construction Trade Council; and 3. Return to the Board of Harbor Commissioners for further processing. Respectfully Submitted, AMBER M. KLESGES Commission Secretary cc: Trade, Travel & Tourism Committee Councilman Buscaino Councilman Bonin Councilman Krekorian Mandy Morales, Mayor's Office Tuesday Erick Martell, Harbor Representative Alvin Newman, CAO Dennis Gleason, CD15 Mandana Khatibshahidi, CLA AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER - November 21, Printed on recycled paper PAGE 15

16 TO Eugene D. Seroka, Executive Director Harbor Department FROM TRANSMITTAL DATE NOV COUNCIL FILE NO. COUNCIL DISTRICT The Mayor 15 PROPOSED PORT-WIDE PROJECT LABOR AGREEMENT BETWEEN THE HARBOR DEPARTMENT AND THE BUILDING TRADES Transmitted for further See the City Adprf c^^i^g and Co*t#cil consideration. isti 'ffieer, jirt attached. Ana Guerrero MAYOR RHL:ABN:101B0030t CAO 649-d Tuesday - November 21, PAGE 16

17 REPORT from OFFICE OF THE CITY ADMINISTRATIVE OFFICER October 30, 2017 Date: CAO File No. Council File No Council District: 15 To: The Mayor From: Reference: Subject: Richard H. Llewellyn, Jr., Interim City Administrative Officefr^y Correspondence from the Harbor Department dated September 14,2017; referred by the Mayor for report dated September 20, 2017 PROPOSED PORT-WIDE PROJECT LABOR AGREEMENT BETWEEN THE HARBOR DEPARTMENT AND THE BUILDING TRADES RECOMMENDATIONS That the Mayor: 1. Approve Harbor Department (Port) Resolution No authorizing proposed Agreement No with the Los Angeles/Orange Counties Building and Construction Trade Council for a Port-wide Project Labor Agreement; and, 2. Return the document to the Port for further processing, including Council consideration. SUMMARY The Harbor Department (Port) Board of Harbor Commissioners (Board) requests approval of Resolution to authorize proposed Agreement No with the Los Angeles/Orange Counties Building and Construction Trade Council (Building Trades) to continue a Port of Los Angeles (POLA) Project Labor Agreement (PLA) for 10 years. The purpose of the POLA-PLA was to serve as a blanket agreement to hire and expand personnel in Building Trades to work on projects identified in POLA s 10-year Capital Improvement Program (CIP). In 2011, the Port negotiated a Port-wide PLA with the building trade unions for selected large and complex construction projects for five years. The POLA-PLA allowed the Port to take advantage of the benefits of a PLA and save valuable negotiation time by having the five-year agreement apply to a predetermined list of construction projects. The Port states that the proposed POLA-PLA will perform the same function and increase the term of the agreement to ten years. Attached is an overview of the POLA-PLA proposed provisions. The PLA is a single pre-hire labor contract between a construction owner, contractor and the Building Trades which sets wages and work fules on specific CIP projects. The POLA-PLA provides for orderly settlements of labor disputes and grievances without strikes, lockouts or slowdowns which assure the efficient and timely completion of the approved CIP construction projects. All contractors are required to pay prevailing wage rates, fringe benefits, and adhere to an agreement which formally binds them to requirements and conditions of the POLA-PLA. Tuesday - November 21, PAGE 17

18 CAO File No PAGE 2 Building Trades pledge to exert their best efforts to identify, recruit and assist individuals, particularly local residents and transitional workers, to become qualified and eligible for apprenticeship programs in the POLA-PLA. The POLA-PLA will continue to use Building Trades to promote the hiring of unemployed and under-employed workers and assist in advancing the skills and employability of local residents and transitional workers in the City who are interested in entering areas of construction work. These potential workers include persons from concentrated poverty neighborhoods in the City, particularly local residents who reside near the POLA. Transitional workers can include those City and local residents who meet the following criteria: veterans; homeless, documented history of involvement with the criminal justice system; receiving public assistance; single custodial parent; long-term unemployed; emancipated from the foster care system; and, other criteria identified in the agreement. The POLA-PLA is the effort by the City and Port to initiate a means to reinvest dollars into their own neighborhoods through direct hiring of residents, offering apprenticeships, and direct contracting and procurement through local businesses. The criteria for local and transitional worker participation will include a two-tier approach, as follows: Local residents must include a minimum of 30% of total work hours within the targeted areas: 1st tier: residents within about 10 miles of the Port; 2nd tier: residents of high-unemployment zip codes in the balance of the City; Transitional Workers must include a minimum of 10% of total work hours within Tier 1 or Tier 2 zip codes. Prescribed hours may be applied towards the 30% local resident hiring target. BACKGROUND In 2010, the Council approved a Department of Public Works (Public Works) PLA to address unemployment and under-employment in certain City communities (C.F ). In 2011, the Port worked with staff from the Public Works and City Attorney to develop a POLA-PLA and an associated Construction Careers Policy (Policy) patterned after the Public Works-PLA. The Policy determined the stakeholder roles and responsibilities and included an enforcement section for non compliance with the POLA-PLA. In 2011, the Port s staff negotiated the parameters of the PLA with the various Building and Construction Trade Unions and reached an agreement that resulted in a POLA-PLA for five-year contract term. CITY COMPLIANCE ISSUES The Office of the City Attorney has prepared the POLA-PLA and approved it as to form and legality. The proposed Agreement for a ten-year term is in compliance with all applicable provisions of the City Ordinances and contracting requirements. The requirements include: Equal Benefits; City Living and Service Contract Worker Retention Ordinances; insurance coverages; and Minority, Women, Very/Small Business, and all other Business Enterprises (MBE/WBE/VSBE/SBE/OBE) compliances. The Port Director of Environmental Management has determined that the proposed action is exempt from the applicable requirements of the California Environmental Quality Act (CEQA) and the Los Angeles City CEQA Guidelines. All employees covered by this Agreement will comply and be classified in accordance with the negotiated and agreed upon provisions of the POLA-PLA. Tuesday - November 21, PAGE 18

19 CAO File No. PAGE FISCAL IMPACT STATEMENT Approval of the proposed Agreement between the Harbor Department (Port) and the Los Angeles/Orange Counties Building and Construction Trade Council (Building Trades) will continue the Port of Los Angeles (POLA)-Project Labor Agreement (PLA) for a ten-year term. The previous POLA-PLA was approved for five years. The existing Port s Construction Division staff will work with the Building Tracies to administer the POLA-PLA on the Port-approved Capital Improvement Program (CIP) projects within the POLA at a salary and benefit amount of approximately $212,000 per year. The Port is paying the Public Works Bureau of Contract Administration approximately $250,000 to assist in the administration of the POLA-PLA. The Port may need to provide additional funding support because of the local hire and apprenticeship requirements and potential increase in CIP projects in the proposed POLA-PLA. If the Port and Building Trades require additional staff and consultant services, the estimated annual costs to support the POLA-PLA could range from $350,000 to $500,000 per fiscal year. RHL:ABN: Attachment Tuesday - November 21, PAGE 19