Board of Airport Commissioners

14. RESOLUTION NO. - Third Amendment to Terminal Facilities Lease and License Agreement LAA-8965 with Air Canada: Covering space in Terminal 6 at Los Angeles International Airport, to provide rent credits not to exceed $154,000 for costs associated with use of the baggage system by common use airlines located in said terminal, to add language to update the lease provisions that govern use of preferential use gates, and to extend the term through December 31, 2027, to be co-terminus with the Alaska Airlines lease\nPURPOSE: Staff request approval of the proposed amendment to provide rent credits to Air Canada up to $154,000 through December 31, 2027, for costs incurred operating and maintaining portions of the baggage system in Terminal 6 that are used by common use airlines. Approval of the action, and two other simultaneous requests to amend Southwest Airlines' lease and Alaska Airlines' lease, is a critical component for Los Angeles World Airports to implement a single common use gate charge at Los Angeles International Airport. In addition, the proposed amendment will extend Air Canada's lease to be co-terminus with Alaska Airlines' lease that also operates in Terminal 6, and update the lease provisions that govern use of preferential use gates.\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 and Article III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines; approve the Third Amendment to Terminal Facilities Lease and License Agreement LAA-8965 with Air Canada; further approve authority to issue rent credits not to exceed $154,000 over the remaining term of said agreement; and authorize the Chief Executive Officer, or designee, to execute said Third Amendment after approval as to form by the City Attorney and approval by the Los Angeles City Council. (David Jones)\n14 report