Los Angeles World Airports

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RESOLUTION NO. 25950

BE IT RESOLVED that the Board of Airport Commissioners approved a six (6)-year Lease with Swissport SA, LLC and Building Rental Rate, with four (4) one-year extension options, for a bus maintenance facility located at 7025 West Imperial Highway at Los Angeles International Airport, as referenced in the Board-adopted staff report attached hereto and

cny of Los Angelas made part hereof; and

LAX

LA/Ontaiio

Van Nuys

Eric Garcetti Mayor BE IT FURTHER RESOLVED that the Board of Airport Commissioners authorized the Chief

Executive Officer to execute said Lease upon approval as to form by the City Attorney and upon approval by the Los Angeles City Council; and

Board of Airport Commissioners

Sean 0. Burton President BE IT FURTHER RESOLVED that 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 involving negligible or no expansion of use and/or alteration or modification of the facilities or its operations beyond that previously existing or permitted is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article III Class 1(18)(c) of the Los Angeles City CEQA Guidelines;

Valeria C. Velasco Vice President

Jeffery J. Daar Gabriel L. Eshaghian Beatrice C. Hsu Nolan V. Rollins Dr. Cynthia A. Telles and

Deborah Hint Chief Executive Officer 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 606.

0O0

I hereby certify that this Resolution No. 25950 is true and correct, as adopted by the Board of Airport Commissioners at its Regular Meeting held on Thursday, April 21, 2016.

Sandra J. Miller - SecretaryBOARD OF AIRPORT COMMISSIONERS

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1 World Way Los Angeles California 90045-5803 Mail RO. Box 92216 Los Angeles California 90009-2216 Telephone 310 646 5252 Internet www.lawa.aero

• Los Angeles World Airports H rREPORT TO THE

BOARDWF At T COMMISSIONERS

Approved bk Ramon Olivai&s, Director,

Meeting Date:

,Services 4/21/2016

□ CompletedL

CAO Review:Reviewed by: Debbie Bowers, Deputy Executive Director Pending

□ N/A

& Reviewed for Approval StatusDate\ ByCity Attorney KIY □ N □ NA

El YD IM DIMA

BY □ N

Capital Budget

Operating Budget

4/6/16 NE

4/4/2016 RW

03/31/16CEQA AE

PebQrah Jlint - Chief Executive Officer BY DN □ Cond

BYDN

Procurement 04/01/16 MT

4/7/2016Guest Experience BY

SUBJECT: Approval of a Lease with Swissport SA, LLC and Building Rental Rate at Los Angeles International Airport

Approve a six-year Lease, with four one-year extension options, with Swissport SA, LLC and associated building rental rate for a bus maintenance facility located at 7025 West Imperial Highway at Los Angeles International Airport that will yield approximately $280,202 in the first year and approximately $1,681,209 over the initial six-year term.

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 III, Class 1(18)(c) of the Los Angeles City CEQA Guidelines.

2.

APPROVE the Lease with Swissport SA, LLC and associated building rental rate, as referenced in this report.

3.

AUTHORIZE the Chief Executive Officer to execute the Lease between the City of Los Angeles and Swissport SA, LLC upon approval of the City Council and approval as to form by the City Attorney.

4.

Page 1Swissport Lease @ 7025 W Imperial

DISCUSSION:

1. Purpose

Provide a facility for Swissport SA, LLC (Swissport) to perform maintenance, repair, fueling and cleaning services for shuttle buses owned by Los Angeles World Airports (LAWA).

2. Prior Related Actions

• March 1, 2004 - Resolution No. 22302The Board of Airport Commissioners (Board) approved a five-year contract with Globeground North America, LLC (now named Swissport SA, LLC) for provision of bus maintenance services and operation of a courtesy shuttle service at LAX. This contract was subsequently extended under several Board actions through June 30, 2016.

3. Current Action

On December 1,2015, LAWA staff released a Request for Proposals (RFP) for a bus maintenance provider to maintain LAWA’s bus fleet associated with landside shuttle operations at LAX. The bus maintenance provider is responsible for maintenance, repair, fueling and cleaning of LAX shuttle buses.

Under the terms of the RFP, LAWA was to make available to the bus maintenance provider the maintenance facility located at 7025 West Imperial Highway at LAX. Proposals were due on January 21, 2016. Swissport was selected as the bus maintenance provider. Concurrent with this Board Report, staff has submitted a separate Board Report regarding the approval of the operating agreement with Swissport.

Page 2Swissport Lease @ 7025 W Imperial

The table below provides a summary of key elements of the proposed Lease:LEASE SUMMARY

Proposed

USE: Bus Maintenance Facility

TERM:Total Lease period Commencement Date ExpirationCancellation Provision

Six (6) years with four (4) one-year extension options July 1, 2016Six years after commencement Automatically terminates 30 days from the termination of the bus maintenance services agreement with LAWA._____________________

DEMISED PREMISES:Land (On-Airport Industrial)Auto PavingBuilding

62,124 SF 53,153 SF 7,773 SF

RENT:Land Rate*Auto Paving Rate* Building Rate

$ 2.81 $ 0.38 $11.00

$ 23,350 $ 280,202

Monthly Rent Annual Rent

*Land and Paving rates are Board-approved rates. All rates are per square foot per year, and are rounded.

Action Requested

Staff requests the Board approve the proposed Lease with Swissport, and associated rental rates, and authorize the Executive Director to execute the Lease after approval by the City Council and approval as to form by the City Attorney.

Fiscal Impact

Approval of this item will generate approximately $1,681,209 in gross revenue, exclusive of rental adjustments during the initial six-year term.

4. Alternatives Considered

• Take No Action

Not leasing the premises would be an option if LAWA needed to use the site for its own purposes. At this time, LAWA does not need the premises. Approval of the Lease will allow Swissport to provide shuttle bus maintenance services for LAWA at LAX.

Page 3Swissport Lease @ 7025 W Imperial

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 involving negligible or no expansion of use and/or alteration or modification of the facilities or its operations beyond that previously existing or permitted is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article III, 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 606.

4. Swissport SA, LLC will comply with the provisions of the Living Wage/Service Contractor Worker Retention Ordinances.

5. The Small Business Enterprise Program does not apply to leases.

6. Swissport SA, LLC will comply with the provisions of the Affirmative Action Program.

7. Swissport SA, LLC has been assigned Business Tax Registration Certificate number 0000777501-0001-8.

8. Swissport SA, LLC. will comply with the provisions of the Child Support Obligations Ordinance.

9. Swissport SA, LLC. has approved insurance documents, in the terms and amounts required on file with Los Angeles World Airports.

10. This action is not subject to the provisions of City Charter Section 1022 (Use of Independent Contractors).

11. Swissport SA, LLC has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program.

12. Swissport SA, LLC has been determined by Public Works, Office of Contract Compliance, to be in compliance with the provisions of the Equal Benefits Ordinance.

13. Swissport SA, LLC will be required to comply with the provisions of the First Source Hiring Program for all non-trade Airport jobs.

14. Swissport SA, LLC has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions.

Page 4Swissport Lease @ 7025 W Imperial