041Los Angeles World Airports REPORT TO THE. SUBJECT: Award of an Agreement for Currency Exchange and Business Services Concession

Transcription

1 BOARD 041Los Angeles World Airports REPORT TO THE AII5130 T COMMISSIONERS Meeting Date: Approved tpv\_dave Jones, Dir tor, Termi ss Management 6/16/2014 _A OA L. 1 Reviewed by: Debbie L. Bowers, D p y Executive Director /9ina Marie Lindsey - Executive Director /,/ CAO Review: Reviewed for Date Capital Budget 06/05/14 Operating Budget 4104 CEQA 5/30/14 Procurement 06/02/14 SUBJECT: Award of an Agreement for Currency Exchange and Business Services Concession Completed Pending N/A Approval Status DY LI ND NA LYD N DNA NY D N DY EN CI Cond By DS MV MT Award of an agreement to Lenlyn Ltd. Dba ICE Currency Services USA to manage and operate the Currency Exchange and Business Services Concessions at Los Angeles International Airport for a term of seven-years with three one-year extensions and an expected revenue of $50 million over the term. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article Ill, Class 1(18)(c) of the Los Angeles City CEQA Guidelines. 3. FIND that the work can be performed more economically or feasibly by an independent contractor than by City employees. 4. FURTHER FIND that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City's interests. Page '1 Currency Exchange Award.docx

2 5. FURTHER FIND that Lenlyn Ltd. Dba ICE Currency Services USA is responsive and responsible, that entering into this agreement is to the advantage of the City, and waive any informality in the proposals. 6. APPROVE the award of seven-year agreement with three one-year extensions to Lenlyn Ltd. Dba ICE Currency Services USA to manage and operate the Currency Exchange and Business Services Concessions at Los Angeles International Airport and an expected minimum revenue of $50 million over the term. 7. AUTHORIZE the Executive Director to execute an agreement with Lenlyn Ltd. Dba ICE Currency Services USA upon approval as to form by the City Attorney and approval of the City Council. DISCUSSION: 1. Purpose To provide currency exchange and business services concessions at Los Angeles International Airport (LAX). 2. Prior Related Actions No prior related action. 3. Current Action Approval of this action will award Lenlyn Ltd., Dba ICE Currency Services USA (ICE), a concessions agreement allowing them to manage and operate Currency Exchange and Business Services Concessions at LAX (Agreement) for a seven-year term with a potential for three, one-year extensions. Under the proposed Agreement, ICE is obligated to buy and sell currency and provide money wire transfer and notary public services at specific locations at Terminals 2, 4, 5, 6, 7, and Tom Bradley International Terminal (TBIT). Units may be added in any of these terminals or in Terminals 1, 3, and 8 at Los Angeles World Airports (LAWA) sole discretion based on the on-going development and operational activities at the airport. ICE will pay to LAWA the greater of a Minimum Annual Guarantee (MAG) or a percentage rent equal to 10.08% of annual gross revenue applicable to all services rendered. The MAG is determined each year as the greater of the following three elements: Floor Element: Year 1 - $6 million Year 2 - $6.4 million Year 3 and thereafter - Floor element from prior year escalated by 50% of the Consumer Price Index (CPI) percentage change. Prior Year Element - 90% of all payments to LAWA in the prior year. PIPP Element - Commencing in the third year of the primary term of the Agreement, the number of enplaned international passengers multiplied by a Per International Page 2 Currency Exchange Award.docx

3 Passenger Payment (PIPP) rate of $0.88. The PIPP rate will increase yearly by 50% of CPI. ICE will be responsible for managing all aspects of construction related to the currency exchange locations. ICE guaranteed a capital investment amount of $1.7 million for the construction and refurbishment program at LAX. The proposed Agreement includes ancillary services expected to improve customer service such as travel insurance, cash advance on credit cards, pre-paid phone cards, foreign currency ATMs, pre-paid currency cards, Online Click and Collect, 0% commission buy back, rate protection guarantee, airport staff discount, loyalty cards for frequent travelers, and visitor guides. There are about 300,000 currency transactions per year at LAX under the existing agreement with an average of 50 currencies traded. The total dollar amount of money exchanges reported is $67,394,684 for fiscal year 2011, $69,090,834 for fiscal year 2012, and $70,871,031 for fiscal year Procurement Process On March 28, 2014, two proposers submitted proposals to Los Angeles World Airports (LAWA). The four-member evaluation committee consisted of the following: Chief Operating Officer Deputy Executive Director, Commercial Development Group Director of Terminals Business Management Customer Services Director Specific evaluation criteria were published in the RFP and were employed to rank the proposals received as listed below. To allow proposers the opportunity to clarify and expand upon aspects of their proposal, interviews were conducted on May 15, 2014 and May 20, Evaluation Criteria Criteria Weight Qualifications and Experience 10 Financial Capability 10 Financial Return to LAWA Per International Passenger Payment (PIPP) Rate 30 Percentage Rent 20 Management and Operations 10 Design and Quality of Improvements 10 Customer Service Initiative 10 Total Points: 100 -, Page 3 Currency Exchange Award.clocx

4 Following the interviews, the evaluation panel ranked the proposals based upon the criteria listed above. The final rankings are as follows: Proposer Lenlyn Ltd dba ICE Currency Services USA Travelex Currency Services Inc. Rank 1 Action Requested Staff requests that the Board award a seven-year agreement to ICE to operate and manage Currency Exchange and Business Services Concessions at LAX and to authorize the Executive Director to execute the Agreement upon approval as to form by the City Attorney and the Los Angeles City Council. Fiscal Impact Awarding this Agreement will generate $50 million in revenue to LAWA during the sevenyear contract term. 4. Alternatives Considered Do not award Agreement to ICE The proposal submitted by ICE provided for the highest guaranteed rent to LAWA, a unit design complimentary to a sense of place in LA, a higher capital investment, and services that showed an understanding of and response to customers' existing and future needs. These increased offerings will not be available to LAWA if Agreeement is not awarded to ICE. APPROPRIATIONS: Not applicable. Approval of this action will not require an appropriation of funds from LAWA's Capital Budget STANDARD PROVISIONS: The issuance of permits, leases, agreements, and renewals, amendments or extensions thereof, or other entitlements granting use of an existing airport facility 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 Ill, Class 1(18)(c) of the Los Angeles City CEQA Guidelines. 2. This contract 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 373. Page 4 Currency Exchange Award.docx

5 4. ICE Currency Services will comply with the provisions of the Living Wage/Service Contractor Worker Retention Ordinances. 5. Procurement Services reviewed this action (File No. 6240) and established a goal of 10% Airport Concession Disadvantaged Business Enterprise (ACDBE) participation. ICE Currency Services proposes 10.64% ACDBE participation. Procurement Services confirms that based on documents submitted ICE Currency Services has made a good faith effort to outreach to ACDBE subcontractors. 6. ICE Currency Services will comply with the provisions of the Affirmative Action Program. 7. ICE Currency Services has been assigned Business Tax Registration Certificate No ICE Currency Services will comply with the provisions of the Child Support Obligations Ordinance. 9. ICE Currency Services will have approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports prior to execution of contract. 10. This action is not subject to the provisions of Charter Section 1022 (Use of Independent Contractors). 11. ICE Currency Services has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. ICE Currency Services must be determined by Public Works, Office of Contract Compliance, to be in full compliance with the provisions of the Equal Benefits Ordinance prior to execution of contract. 13. ICE Currency Services will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs. 14. ICE Currency Services has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Page 5 Currency Exchange Award docx

6 SUBCONTRACTOR PARTICIPATION PLAN Project Tdle: CURRENCY EXCHANGE AND BUSINESS SERVICES CONCESSION 1,;',41:1:11:00beetpl5gageietegteAki...Ina5144ArigtraaM; terinatelnreetedreinit ',..'-7:',..?,:4YreTWBig/Piti*OtAiillidgettrZ;WW400Aekttantrig5Pnitdebt:SenVicca:3Zatt LENLYN LTD DBA ICE CURRENCY SERVICES USA GROuR Provision of currency exchange Amiens:6151 W CENTURY BLVD, SUITE 1108 Erman% $126,837,178 and other business services. Cnv/SrATE/DP: LOS ANGELES CA (Gross Income) COMACT BHARAT SHAH CERTFYING AGENCY: TELEPHONE NO: bharatalceamenca.net VENDOR OR FEDERAL ID: NAIGS: MAreisac:i5gii3AditifiicaMOMOOM nF*4M1159,1tRkiRillitalAiiblialiaf 4.%;: tiotatal prtwx*geliiiitie»tapiketi'ijasikifettwa:.: NAME WORLD BANKNOTES EXCHANGE DBE Provision of currency exchange services 520 SOUTH GRAND AVENUE, #1100 ETHNICHY:sUBCONTINENT ASIAN INDtAN $13,500, % via a sub-concession agreement for OrY/SrATE/ZIP: LOS ANGELES CA GENDER MALE a location at TBIT. CONTACT Nam: MAHESH PATEL TELEPHONE NO: CUCP - CITY of LOs ANGELES EMI.: Ourreneyexchange@aotoom VENDOR OR FEDERAL ID: NAICS: NANE: CITY/STATE/ZIP: CONTACT VENDOR OR FEDERAL ID: NAICS: ADDREss: CITY/STATEZLP: CONTACT NAmE ETlimaTt GENTLER: CERTIPANG AGENOC EWa: VENDOR OR FEDERAL ID: NAICS: NAme Cily/STATErap: CONTACT Nme CERTIFYING AGENCy: VENDOR OR FEDERAL ID: NAICS: NANE: CoNTAcT TELEPHOIE NO: VENDOR OR FEDERAL ID: NAICS: Reeked 2/11/13

7 1 SUBCONTRACTOR PARTICIPATION PLAN 'MR.5ZRSOB«*ktitiid:tbFECo'í;ifàki(bit-öiVéïtf'di0L..:P:e-r Piktioitiiikkiiiwo-ii, piko:0-0.*0-:ii: 3n6-50,0gbys.:; yv: DESeittitti&OP PROjnetSitliVIOSTY: CITY/STATEZIR CCNTACT NAME EINCM,: CERWYING AGENCY: VENDOR OR FEDERAL ID: NAICS: CITY/STATE/ZJP: CONTACT CERGFYING AGENCY: TELEPHONE NO: VENDOR OR FEDERAL ID: NAICS: CITY/STATEIZIP: CONTACT NAPE: TELEPHONE NO: VENDOR OR FEDERAL ID: NAICS: CITY/STATEMJE CONTACT NAmE: TELEPHONE NO: VENDOR OR FEDERM. ID: NAICS: / certity under Me penalty of penury Mat Me information contained on this tom is frue and correct and that We firms listed are the subconbactors that will be utilized if This contract is awarded to the above prime contractor. I agree to comply with any applicable provisions for additions and substitutions, and I fwther understand andagree that any and all changes or substitutions must be authorized by LAWA Procurement Services Division pdor to their implementation. Participation Level proposed by BlddedProposer: % Level of Participation stated In The Request for Bid/Proposal: 10 ID SETE 0 M/WBE DBE 1.3 ACDBE D SBE M/WBE DBE 1:1 ACDBE 444pc SIGNATURE ) DATE BHARAT SHAH SENIOR VICE PRESIDENT NAME TITLE PHONE RevIS*