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RESOLUTION NO. 25949

BE IT RESOLVED that the Board of Airport Commissioners approved award of a six (6)-year Agreement to Swissport SA, LLC, with four (4) one-year extension options, for shuttle bus maintenance, repair, fueling, and cleaning services at Los Angeles International Airport, 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 Agreement upon approval as to form by the City Attorney and upon approval by the Los Angeles City Council; and

LAX

IA/Ontario

Van Nuys BE IT FURTHER RESOLVED that the Board of Airport Commissioners found that the work can be performed more economically or feasibly by an independent contractor than by City employees; and

City of Los Angeles

Eric Garcetti Mayor

BE IT FURTHER RESOLVED that the Board of Airport Commissioners found that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section 10.17 and is compatible with the City's interests;

Board of Airport Commissioners

Sean O. Burton President and

Valeria C. Velasco Vice President BE IT FURTHER RESOLVED that the Board of Airport Commissioners found that Swissport

SA, LLC is responsive and responsible, that entering into this Agreement is in the best interest of the City, and waive any informality in the proposal; andJeffery J. Daar

Gabriel L. Eshaghian Beatrice C. Hsu Nolan V. Rollins Dr. Cynthia A. Telfes 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 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; and

Deborah Flint 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 373.

oOo

I hereby certify that this Resolution No. 25949 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

1 World Way Los Angeles California 90045-5803 Mail P0. Box 92216 Los Angeles California 90009-2216 Telephone 310 646 5252 Internet www.lawa.aero

Los Angeles World Airports 'iber

BOARD OF Ah T COMMISSIONERSMeeting Date:

{<Jj. hJris,Approved by: Marisa Katnich,.Director, Landside Business

A'*' Manaoement4/212016

□ Completed

bbie Bowers, Deputy/Executive Director CAP Review:Reviewed by: De Pending

N/A□Reviewed for Date By

(''City Attorriey Capital Budget Operating Budget

4/6/20164/4/2016

BY □ N □ NA E3YD N DNA

NERW

A CEQA 3/31/2016 G2Y □ N AE

Deborah Flint - Chief Executive Officer ®Y DN □ Cnnd4/1/2016Procurement MT

4/11/2016Guest Experience G3Y DN BY

SUBJECT: Award of an Agreement for Shuttle Bus Maintenance, Repair, Fueling, and Cleaning at Los Angeles International Airport

Award a six-year agreement, with four one-year extension options, to Swissport SA LLC for shuttle bus maintenance, repair, fueling, and cleaning services at Los Angeles International Airport for an amount not to exceed $16.7 million 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.

FIND that the work can be performed more economically or feasibly by an independent contractor than by City employees.

3.

FIND that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section 10.17 and is compatible with the City's interests.

4.

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FIND that Swissport SA LLC is responsive and responsible, that entering into this agreement is in the best interest of the City, and waive any informality in the proposal.

5.

APPROVE the award of a six-year agreement, with four one-year extension options, to Swissport SA LLC to provide shuttle bus maintenance, repair, fueling, and cleaning services at Los Angeles International Airport for an amount not to exceed $16.7 million over the term.

6.

AUTHORIZE the Chief Executive Officer to execute the agreement after approval as to form by the City Attorney and upon approval by Los Angeles City Council.

7.

DISCUSSION:

1. Purpose

Provide continued shuttle bus maintenance, repair, fueling, and cleaning services to support Los Angeles World Airports’ (LAWA) landside busing operation at Los Angeles International Airport (LAX).

2. Prior Related Actions

• March 1,2004 - Resolution No. 22302The Board of Airport Commissioners (Board) awarded a five-year contract to 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

Los Angeles World Airports owns 52 buses which are used to provide courtesy shuttle service as follows: 1) between terminals in the Central Terminal Area (CTA); 2) between the CTA and various public and employee parking lots; and 3) between the CTA and the Metro Green Line Aviation Station.

Swissport SA LLC (Swissport) was selected to provide shuttle bus maintenance, repair, fueling, and cleaning services to support the landside busing operation at LAX through the procurement process below. Swissport is the incumbent bus maintenance contractor since 2004 and has provided similar services at other airports.

Terms of Agreement

Under the agreement, Swissport will be responsible for maintaining, repairing, fueling and cleaning the 52 buses in LAWA’s landside bus fleet. Swissport's role in providing a well­functioning, reliable, and clean fleet contributes to and is a critical element of the the overall guest experience at LAX.

The proposed term, which is expected to commence on July 1, 2016, will be for a term of six years with four, one-year extensions exercisable by LAWA, for a potential aggregate term of 10 years. The duration of the initial term is aligned with the activation date for proposed landside improvements, providing time to determine LAWA’s long term busing needs and flexibility to extend the term if need.

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The fee structure of the agreement is provided below:

AGREEMENT FEE SCHEDULE

Monthly Management Fee $48,500

$47.84Mechanic Hourly Rate

$28.04Fueler/Cleaner Hourly Rate

Parts Markup 6.1%

Outside Services Markup 5.0%

Procurement Process

On January 29, 2016, three proposers submitted proposals in response to the Request for Proposals for Shuttle Bus Maintenance, Repair, Fueling, and Cleaning at LAX (RFP). The four-member evaluation committee consisted of the following LAWA staff:

Deputy Executive Director, Commercial Development Group Deputy Executive Director, Facility Maintenance and Utilities Group Director of Maintenance, Fleet Operations Executive Assistant Airports

The Evaluation Criteria, published in the RFP and shown below, were used to rank the proposals.

CriteriaWeight

Evaluation Criteria

Qualifications and Experience_________________________Bus Maintenance, Repair, Fueling, and Cleaning Program Staffing and Management_____________________________

202515

Financial Capability Financial ProposalTotal Points

1030

100

The evaluation panel scored and ranked the proposals based on all Evaluation Criteria categories as shown in the table below. The evaluation panel ranked Swissport as the top proposer.

Proposer Rank

1Swissport SA, LLC2First Vehicle Services, Inc.

North Eastern Bus Rebuilders Inc. 3

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Action Requested

Staff requests the Board award a six-year agreement, with four one-year extension options, to Swissport for shuttle bus maintenance, repair, fueling, and cleaning services at LAX for an amount not to exceed $16.7 million over the initial six-year term.

Fiscal Impact

Approval of this agreement will cost approximately $2.45 million in the first year, Fiscal Year 2016-17, (approximately $215,000 more than the budget for the current year, Fiscal Year 2015-16) with a total cost not to exceed $16.7 million over the initial six-year term. These costs will be recovered through landing fees and terminal and building rates and charges, as well as through non-aeronautical revenues.

4. Alternatives Considered

• Take No Action

Not awarding the proposed agreement would result in the expiration of the existing contract on June 30, 2016, causing a disruption to landside busing services.

APPROPRIATIONS:

Funds for this contract have been requested in the Fiscal Year 2016-17 LAWA Operating Budget in LAX Cost Center 2001057 - LND Ground Transport All; Commitment Item 520 - Contractual Services. Funds for subsequent years will be requested as part of the annual budget process.

STANDARD PROVISIONS:

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 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.

1.

This item is subject to approval as to form by the City Attorney.2.

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.

3.

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

4.

Procurement Services has reviewed this action (File No. 10040749) and established a mandatory 10% Small Business Enterprise (SBE) goal for the project. Swissport SA LLC has committed to 18.2% SBE participation.

5.

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

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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 will have approved insurance documents, in the terms and amounts required, on file with Los Angeles World Airports prior to issuance of a Notice to Proceed.

10. Pursuant to Charter Section 1022, staff determined the work specified on the proposed contract can be performed more feasibly or economically by an Independent Contractor than by City employees.

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 must be 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.

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