Los Angeles — 2023-03-02

A.\nCONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8):\n1.\nRegarding Rental Amounts and Terms for the Terminal Leases for Terminals 1 through 8 and Tom Bradley International Terminal at Los Angeles International Airport.  The subject properties and negotiating parties/designees are listed in Attachment 1.  [City Attorneys: T. Yamaguchi, T. Daze’]\na.\nProperty Negotiators: Justin Erbacci/David Jones/Tatiana Starostina\nAttachment 1 \n2.\nRegarding Property Negotiations with Concessionaires at Los Angeles International Airport listed in Attachment 2  [City Attorney: T. Daze’]\na.\nProperty Negotiators: Justin Erbacci/David Jones\nAttachment 2

B.\nCONFERENCE WITH LEGAL COUNSEL - PENDING LITIGATION (Government Code Section 54956.9(a); 54956.9(c); 54956.9(d)(1), (d)(2), and (d)(4); 54956.9(e)(1), (e)(2), (e)(3), and (e)(5); and 54956.9(h)):\n1.\nClaims by LAX Integrated Express Solutions, LLC (LINXS)  [City Attorney:  E. Ross]\n2.\nClaims by LA Gateway Partners, LLC (LAGP)  [City Attorney:  J. Lisenbery]\n3.\nLA Alliance for Human Rights, et al. vs. City of Los Angeles, et al., United States District Court - Central District of California Case LA CV 20-02291-DOC-(KESx)  [City Attorney:  T. Daze’]\n4.\nSteve Bubalo Construction Co. v. City of Los Angeles, et al., Los Angeles County Superior Court, Case No. 21STCV45667  [City Attorney:  J. Lisenbery]

C.\nTHREAT TO PUBLIC SERVICES OR FACILITIES (Government Code Section 54957):\n1.\nConsultation with Los Angeles World Airports Public Safety & Security Deputy Executive Director Martin Elam and Chief of Airport Police Cecil Rhambo

X.\nCLOSED SESSION ITEMS

XI.\nANNOUNCEMENT OF ACTIONS TAKEN IN CLOSED SESSION

XII.\nCOMMISSIONERS’ REQUESTS TO CALENDAR AGENDA ITEMS

XIII.\nOTHER REPORTS AND INFORMATION \n(Attendance at aviation-related events)  \n(Next BOAC Meeting)\nXIV.

II.\nOPENING REMARKS

III.\nMANAGEMENT REPORTS & PRESENTATIONS\na.\nChief Executive Officer Update;\nb.\nState of Van Nuys Airport

IV.\nCOMMENDATIONS & ACKNOWLEDGMENTS

VI.\nNEIGHBORHOOD COUNCIL COMMENTS - An opportunity for Neighborhood Council representatives to provide their respective Neighborhood Council's formal position on any matter listed on this meeting agenda for the Board of Airport Commissioners.  (A Neighborhood Council, through its authorized representative, shall provide the Board with a copy of its Community Impact Statement filed with the City of Los Angeles Office of the City Clerk at https://cityclerk.lacity.org//cis/ or Resolution regarding its formal position.)  (Information on Neighborhood Councils can be found at https://empowerla.org/councils/.)

VIII.\nCONSENT ITEMS FOR BOARD ACTION  [Consent Items 1 - 3]\n1.

IX.\nREGULAR ITEMS FOR BOARD ACTION  [Regular Items 4 - 7]\n4.

RESOLUTION NO.      - Award of three (3)-year Contract to Anderson & Kreiger LLP:  To assist the City Attorney’s Office with providing legal advice to Los Angeles World Airports for federal regulatory advice, including litigation services and other related legal services, for cost not to exceed $300,000 \nPURPOSE: To assist the City Attorney with providing legal advice to Los Angeles World Airports for federal regulatory advice and other related legal services. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners determine that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines; find that the work can be performed more economically or feasibly by an independent contractor than by City employees; approve Award of Contract to Anderson & Kreiger LLP; and authorize the Chief Executive Officer, or designee, to execute said Contract after approval as to form by the City Attorney. (Brian Ostler)\n01 report \n2.

RESOLUTION NO.      - Award of three (3)-year Contract to DownStream Services, Inc.:  Covering sewer cleaning and inspection services for Los Angeles World Airports, for cost not to exceed $900,000 \nPURPOSE: A contract for sewer cleaning, repair and inspection services, grease interceptor cleaning, and emergency response sewer services will keep sewer piping clean, thus avoiding major disruptions to airport operations due to sewer stoppages, and also will help to maintain a healthy environment for visitors throughout Los Angeles International Airport and Van Nuys Airport. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners determine that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (2) of the Los Angeles City CEQA Guidelines; find that the work can be performed more economically or feasibly by an independent contractor than by City employees; approve Award of Contract to DownStream Services, Inc.; and authorize the Chief Executive Officer, or designee, to execute said Contract after approval as to form by the City Attorney. (Richard Connolly)\n02 report \n3.

RESOLUTION NO.      - Additional Premium Payment under the existing General All-Risk Property Insurance Policy:  For placing the Consolidated Rental Car Facility at Los Angeles International Airport under said policy, for not to exceed $380,000, pro-rated for the period starting March 31, 2023 through June 30, 2023 \nPURPOSE: To approve inclusion of the newly constructed $1 billion Consolidated Rental Car Facility in the Los Angeles World Airports General All-Risk Property Casualty insurance policy for policy year 2022-2023, pursuant to the terms and conditions of the design-build-finance-operate-maintain agreement with LA Gateway Partners LLC, subject to the independent project engineer's determination of operation readiness anticipated to occur on March 31, 2023. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners determine that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.i of the Los Angeles City CEQA Guidelines; approve addition of the Consolidated Rental Car Facility to the insured assets under the current Los Angeles World Airports General All-Risk Property Casualty insurance policy for the period starting March 31, 2023 through June 30, 2023, at a not-to-exceed pro-rated premium of $380,000, including the additional required state and federal surplus lines taxes and fees; and authorize the Chief Financial Officer, through the Risk Management Division Director, to submit the additional premium to the contracted Los Angeles World Airports Property Insurance Broker of Record (Alliant Insurance Services, Inc.), which has authority to receive and disburse premiums paid to the various participating insurance underwriters on behalf of Los Angeles World Airports. (Tatiana Starostina)\n03 report

RESOLUTION NO.      - Sixth Amendment to Concession Agreement LAA-8647 with DFS Group, LP:  Covering duty-free concession at Los Angeles International Airport, to allow said concessionaire to return space on a case-by-case basis due to changes in international passenger traffic and airline relocations and extend the term by five (5) years to support said concessionaire’s investment to expand duty-free luxury retail offerings in the Tom Bradley International Terminal \nPURPOSE: Staff requests approval of the proposed amendment to provide flexibility for DFS Group, LP to return space in terminals with low international traffic and support DFS Group, LP's planned investment to expand duty-free luxury retail offerings in the Tom Bradley International Terminal (TBIT). The proposed amendment also will align termination dates of all concession spaces in TBIT. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners 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; approve the Sixth Amendment to Concession Agreement LAA-8647 with DFS Group, LP; and authorize the Chief Executive Officer, or designee, to execute said Sixth Amendment after approval as to form by the City Attorney and approval by the Los Angeles City Council. (David Jones)\n04 report \n5.

RESOLUTION NO.      - Amendments to Concession Agreements LAA-8640 and LAA-8613 with URW Airports, LLC:  Covering terminal commercial management concession at Los Angeles International Airport, to allow said concessionaire to structure more flexible short-term concession opportunities, return unusable spaces, and enter into a limited duty-free concession agreement in the Tom Bradley International Terminal \nPURPOSE: Staff requests approval of the proposed Sixth Amendment to Concession Agreement LAA-8640 and Eighth Amendment to Concession Agreement LAA-8613 with URW Airports, LLC (URW) at Los Angeles International Airport. The proposed amendments will allow URW to develop new short-term agreements with more flexible economic terms to expand concessions opportunities for small and disadvantaged businesses and provide opportunities to return space that may become economically unfavorable due to facility design changes. In addition, the proposed Eighth Amendment to Concession Agreement LAA-8613 will allow URW to subcontract with Los Angeles World Airports duty-free concession operator in the Tom Bradley International Terminal. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners 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; approve the Sixth Amendment to Concession Agreement LAA-8640 and Eighth Amendment to Concession Agreement LAA-8613 with URW Airports, LLC; find that this action is exempt from City Charter Sections 371(e)(10) and 372; and authorize the Chief Executive Officer, or designee, to execute said Amendments after approval as to form by the City Attorney and approval by the Los Angeles City Council. (David Jones)\n05 report \n6.

RESOLUTION NO.      - Settlement Agreement, including a First Amendment to Contract DA-5322 with LA Gateway Partners:  Covering the Landside Access Modernization Program’s Consolidated Rent-A-Car Facility Project at Los Angeles International Airport, and associated change orders, to settle various Relief Event Claims pursuant to the terms outlined in the staff report \nPURPOSE: LA Gateway Partners is the developer under the design-build-finance-operate-maintain agreement for the Landside Access Modernization Program's Consolidated Rent-A-Car Facility Project. LA Gateway Partners has submitted various Relief Event Claims where Los Angeles World Airports and LA Gateway Partners have disagreed on the merit of these claims. The parties have been negotiating in good faith toward resolution of these claims and have recently reached agreement on terms for a settlement. Approval of the Settlement Agreement, including a contract amendment and associated change orders, is requested. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners determine that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.i of the Los Angeles City CEQA Guidelines; approve the Settlement Agreement, including the First Amendment to Contract DA-5322 with LA Gateway Partners and related change orders, for total not to exceed $50,869,000, to settle various Relief Event Claims; further approve an allowance to said Contract DA-5322 with LA Gateway Partners in amount not to exceed $900,000 for extended warranties associated with the Settlement Agreement; further approve appropriation of funds to said Contract DA-5322 with LA Gateway Partners in amount not to exceed $32,000,000 to partially fund the change orders and allowance associated with the Settlement Agreement; and authorize the Chief Executive Officer, or designee, to execute the Settlement Agreement, First Amendment to Contract DA-5322, and associated change orders with LA Gateway Partners to settle various Relief Event Claims. (Jacob Adams)\n06 report \n7.

RESOLUTION NO.      - Change Order to Contract DA-5277 with LAX Integrated Express Solutions, LLC:  Covering the Landside Access Modernization Program’s Automated People Mover Project at Los Angeles International Airport, to settle all delay-related Relief Event Claims through December 8, 2022, and direct costs for various Relief Event Claims, pursuant to the terms outlined in the staff report \nPURPOSE: LAX Integrated Express Solutions, LLC is the developer under the design-build-finance-operate-maintain agreement for the Landside Access Modernization Program's Automated People Mover project. The Developer has submitted various Relief Event Claims where Los Angeles World Airports and the Developer have disagreed on the merit of these claims. The parties have been negotiating in good faith toward resolution of these claims and have recently reached agreement on terms for a settlement. Approval of a change order is requested to finalize the agreement reached between the parties. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners determine that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.i of the Los Angeles City CEQA Guidelines; approve a Change Order to Contract DA-5277 with LAX Integrated Express Solutions, LLC to settle all delays through December 8, 2022, and direct costs for various Relief Event Claims, pursuant to the terms outlined in the staff report; authorize the Chief Executive Officer, or designee, to execute said Change Order in amount of $101,671,746; and further approve appropriation of funds in the same amount. (Jacob Adams)\n07 report