File No. 15-1548

CATEGORICAL EXEMPTION and TRADE, TRAVEL, AND TOURISM COMMITTEE REPORT relative to the First Amendment to Los Angeles World Airports (LAWA) Operating Agreement with AB M Aviation, I nc.

Recommendations for Council action:

1. ADOPT the determination by the Board of Airport Commissioners that the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with Article III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines.

2. APPROVE the First Amendment to LAWA Operating Agreement DA-5043 with ABM Aviation, Inc., to add scope of services, adjust the hourly billable rates, and increase expenditure authority by $2,700,000, for new total not to exceed $143,300,000, for the operation and management of the Central Terminal Area (CTA) parking garage system at Los Angeles International Airport (LAX).

3. CONCUR with the action taken by the Board of Airport Commissioners on January 17, 2019, by Resolution No. 26682, authorizing the Chief Executive Officer, LAWA, to execute the First Amendment to Operating Agreement DA-5043 with ABM Aviation, Inc.

Fiscal Impact Statement: The City Administrative Officer (CAO) reports that this action will not impact the General Fund. Approval of the First Amendment to the LAWA agreement with ABM Aviation, Inc., expands the scope of work, adjusts the employee compensation and increases contract authority by $2,676,030, from $140,561,800 to $143,237,830, over the remainder of the five-year term (concluding May 31, 2021) to automate parking garage access and payment controls and to address management fee and hourly billable rate increases for services impacted by LAWA's adoption of adjustments to the City's Living Wage Ordinance. The proposed action will result in a $2,676,030 increase to LAWA's Fiscal Year (FY) 2018-19 Operating Budget. The required funding will be appropriated and allocated from the LAX Revenue Fund to the FY 2018­19 LAWA Operating Budget in the Landside Management and Airport Permit Services Cost Center. This amendment and the original agreement comply with LAWA's adopted financial policies.

Community I mpact Statement: None submitted.

TIME LIMIT FILE - MARCH 26, 2019

(LAST DAY FOR COUNCIL ACTION - MARCH 26,2019)

SUMMARY

In a report to the Mayor dated February 1, 2019, the CAO states that LAWA requests approval of a First Amendment to the agreement with ABM Aviation, Inc., to adjust the agreement's scope of services, financial terms, employee compensation, and not-to-exceed contract amount. The requested changes will provide for automating access to and payment for use of LAX CTA parking structures P3, P4, and P7; an increase to the billable hours rates for the contractor's

operations managers, parking staff, and garage cleaning personnel to compensate for added costs attributable to the City's Living Wage Ordinance; and, a $2,676,030 increase in the contract authority, from $140,561,800 to $143,237,830, to help finance the scope of services adjustments and living wage increases.

According to the CAO, LAWA desires to take advantage of the improvements being made to the CTA parking structures as a result of the Landside Access Modernization Program construction to implement automated and cashless operations, and the supporting infrastructure, to be interoperable and align with its airport-wide smart parking strategy. The new scope of work enables ABM to purchase and install the parking structures' infrastructure to facilitate the transition to an automated payment system and implement the new equipment and systems. Cost increases associated with the Living Wage Ordinance were unforeseen at the time of the 2015 contract award.

On January 17, 2019, the Board of Airport Commissioners approved LAWA’s request. The CAO concurs with this action.

At its meeting held February 5, 2019, the Trade, Travel, and Tourism Committee recommended that Council approve the proposed First Amendment of the LAWA agreement with AB M Aviation, as recommended by the Board of Airport Commissioners and the CAO.

Respectfully Submitted,

TRADE, TRAVELED TOURISM COMMITTEE

MEMBER VOTE BUSCAINO: YES BONIN: YESKREKORIAN: YES

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-NOT OFFICIAL UNTIL COUNCIL ACTS-