-.r, Lan.ide Business nag --,rent

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1 1 N/A I i -4002, BOAR D O / k A/ AIZil:, ' Los Angeles Worlrl Airports REPORT TO THE IRP RT COMMISSIONERS Approved : á Pb-Ka ich, 1 - r, Lan ide Business nag --,rent Meeting Date: 3/17/2016 Reviewed by: e o 4& k' Debbie Bowers, DI ty Executive Director CAO Review: x Completed Pending r_ Ol Reviewed for Date i Approval Status ily City f torney x 414! Capital Budget 2/29/2016 i 111Y N L NA Operating Budget 311/2016 JAM N HNA NE RW Domrah Flint - hief Executive Officer CEQA 3/4/2016 I OY Li N Procurement 3/3/2016 l OY ON Cold AE MT Guest Experience 3/2/2016: MY LiN BY SUBJECT: Award of an Agreement for Operation and Management of Remote Parking Facility and Shuttle Vehicle Services at Los Angeles International Airport Award a six -year agreement, plus four one -year extension options, to LAZ Parking California, LLC for operation and management of the Lot C remote parking facility and the associated transportation system at Los Angeles International Airport for an amount not to exceed $615 million over the initial six -year 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 III, 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 Page i docx

2 4 FIND that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section 1017 and is compatible with the City's interests 5 FIND that LAZ Parking California, 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 6 APPROVE the award of a six -year agreement, plus four one -year extension options, to LAZ Parking California, LLC for operation and management of the Lot C remote parking facility and associated transportation system at Los Angeles International Airport for an amount not to exceed $615 million over the initial six -year term 7 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 DISCUSSION: 1 Purpose Provide continued operation and management of Los Angeles World Airports' (LAWA) Lot C remote parking facility and associated transportation system at Los Angeles International Airport (LAX) 2 Prior Related Actions December 17, Resolution No The Board of Airport Commissioners (Board) awarded a five -year contract to Cubic Transportation Systems, Inc, to operate and maintain a computerized parking control system for parking facilities at LAX (including Lot C), lots at Ontario International Airport, and parking facilities at the Van Nuys Flyaway Bus Terminal The contract was subsequently extended under several Board actions through January 31, 2018 March 1, Resolution No The Board awarded a five -year contract to Globeground North America, LLC (now named Swissport SA LLC) for operation of courtesy shuttle service at LAX The contract was subsequently extended under several Board actions through June 30, 2016 April 16, Board Order AO The Board awarded a three -year contract, plus two one -year extension options to New South Parking to operate public and employee parking facilities at LAX and Van Nuys FlyAway bus terminal, and to transport disabled passengers at LAX The contract was subsequently was extended under several Board actions through May 31, Current Action In April 2014, staff presented to the Board an overall parking strategy for LAX that recommended LAWA abandon the historical siloed service delivery approach (ie contracting by function rather than by facility) and adopt a programmed, performance oriented approach designed to improve each individual parking product and ultimately the customer experience This action is consistent with that parking strategy Page 2

3 There are currently three separate contracts in place to collectively support the Lot C parking operation including parking management, shuttle operations /maintenance, and Parking Access and Revenue Control System (PARCS) maintenance, plus several contracts for supply purchases Through this action, all goods and services contracts necessary for the operation of Lot C will be consolidated under one Agreement Combining these elements under one agreement will provide a central point of accountability for the operation which is expected to bring a better level of customer service through rationalization of service levels Further, the agreement includes the necessary tools for more effective branding and marketing of the facility, as well as enabling new customer amenities, all of which are comparable to alternate parking products near LAX Through the procurement process described below, LAZ Parking California, LLC (LAZ Parking) was selected to operate and manage the Lot C parking and shuttle operation LAZ Parking's proposed team has provided similar services at other airports, both in the United States and in Canada Terms of Agreement Under the terms of the Agreement, LAZ Parking will have the following core responsibilities: 1) Procure and deploy a branded vehicle fleet to operate courtesy shuttle vehicle service between Lot C and the Central Terminal Area (CTA) with real time next bus arrival technology available to passengers 2) Operate and manage the Lot C parking facility, including, but not limited to, revenue collection and the provision of staffing, security, cleaning services, and certain supplies 3) Operate and maintain the PARCS at Lot C, including upgrades to the system to improve the functionality for credit card acceptance 4) Rebrand Lot C to build customer awareness, add value, and increase gross revenue The proposed agreement, which is expected to commence on June 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 extensions are performance based and tied to increasing revenue per parking space, ensuring contract compliance, and improving and sustaining customer service levels In addition to the performance based extension options, the operator may receive an annual revenue sharing performance payment for incrementally increasing LAWA's gross revenue per parking space, adjusted for organic growth factors The payment is capped at 20% of the incremental increase in gross revenue The agreement's fee structure is composed of the following three elements: 1) Monthly Management Fee 2) Hourly Fees for Parking and Shuttle Staff 3) Monthly PARCS Maintenance Fee The hourly shuttle fees take into account costs for new shuttle buses which will replace LAWA's aging fleet assigned to Lot C, as well as associated maintenance and fuel costs Also, the agreement and fee structure are scalable as necessary to support the proposed landside improvements Page 3

4 Procurement Process On January 28, 2016, two proposers, listed below, submitted responsive proposals in connection with the Request for Proposals for Operation and Management of the Remote Parking Facility and Shuttle Vehicle Services at LAX (RFP) LAWA received a third proposal from Swissport SA LLC; however, the proposal was deemed non -responsive for failure to meet the administrative requirements The four -member evaluation committee consisted of the following LAWA staff: Deputy Executive Director, Commercial Development Chief Financial Officer Chief Management Analyst Senior Transportation Engineer The Evaluation Criteria, published in the RFP and shown below, were used to rank the proposals Evaluation Criteria Criteria Weight Qualifications and Experience 15 Management, Operations and Fleet Plan 15 Customer Service Plan 15 Marketing and Revenue Enhancement Plan 20 Financial Capability 10 Financial Proposal 25 Total Points 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 LAZ Parking as the top proposer Proposer Rank LAZ Parking California, LLC 1 ABM Onsite Services West, Inc 2 Action Requested Staff requests the Board award a six -year agreement, plus four, one -year extension options to LAZ Parking for operation and management of the Lot C remote parking facility and associated transportation system at LAX for an amount not to exceed $615 million over the initial six -year term Fiscal Impact Approval of this Agreement will cost approximately $8 million in the first year and total cost not to exceed $615 million over the initial six -year term These costs will be recovered through parking revenues Page 4

5 4 Alternatives Considered Take No Action Not awarding the proposed agreement would result in the expiration of the existing Lot C parking management contract on May 31, 2016, and busing management contract on June 30, 2016, causing a disruption in service to the traveling public, unless the existing contracts are extended for the fourth and sixth time, respectively APPROPRIATIONS: Funds for this contract are available in the Fiscal Year LAWA Operating Budget in LAX Cost Center LND Parking Structure C, Commitment Item Contractual Services Funds for subsequent years will be requested as part of the annual budget process 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 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 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 LAZ Parking California, LLC will comply with the provisions of the Living Wage /Service Contractor Worker Retention Ordinances 5 Procurement Services has reviewed this action (File No ) and established a 5% Airport Concessions Disadvantaged Business Enterprise (ACDBE) goal for this project LAZ Parking California, LLC committed to 611% ACDBE participation 6 LAZ Parking California, LLC will comply with the provisions of the Affirmative Action Program 7 LAZ Parking California, LLC has been assigned Business Tax Registration Certificate number is LAZ Parking California, LLC will comply with the provisions of the Child Support Obligations Ordinance 9 LAZ Parking California, 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 104 (g) staff determined that airport concession agreements are exempt from the provisions of Charter Section 1022 (Use of Independent Contractor) Page 5

6 11 LAZ Parking California, LLC has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program 12 LAZ Parking California, LLC 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 contract execution 13 LAZ Parking California, LLC will be required to comply with the provisions of the First Source Hiring Program for all non -trade Airport jobs 14 LAZ Parking California, LLC has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions Page 6

7 Cleveland -VENDoitonNosta ivenooaorfedeax GaotarACDBE CBtrExPIRRIONDATe: OBE o NAICS: o SUBCONTRACTOR PARTICIPATION PLAN Rege ATTENTION: You must list ALL subcontractors, regardless of their dollar amount or percent:proposed; and regardless ohirhather they are certified ornot Project Title: RFP for Operation BLManagement of Remote Parking facilibt& Shuttle Services for LAX 1 ::,ALIIISISRIPROPOSEriribliCeinfbirdiaWilirit'':Vg4;1% i:tnmthrrortrgrikewryror'r-torm:;6mgg-zm,gggìivkvaj,tiagàgritkt,:;;:o,ts5m,g,, i _ 7,,::-,,,,, WOE LAZ Parking California LIC GeouP:- OBE 971,48400 Aumse:10635 Santa Monica, Suite 145 GITYISTATEEP: LosAnueles California cow= NAW Kendra Petty, TELPHOME NO: 213q13,2055 ern/cur:n/a mom N/A CenrrrareArmact N/A WA MIL: kpetty@lazoarking:com -Varacaokki,BUL ID: NA108: Parking Management Services :::':::::',:':':::$riiiiiiiiiiikriirmirkififilfikikiiikirriire:2::::,::::::::: 1:,1-i1iiiiiiiiiiiM0100 $PjiFb Alftiiiiiiiiitkgr: First Mansitinc OBE $3,948, % Shuffle Service Management, 600 vine Street, Suite 1400 CrnSuurap:ancinatti, OH CormsorNitae Jeremy Brown TEMPHONE NO: 7024*5990 Enericrry: N/A Gavat, WA, 'CettrYiNaAGENGT N/A CERT EXPIRATION pm:va - -, : i, Ewa: jeremywowwirft-oupcom VENDOR OR FEDERAL ID: NAIC8: ' Name Elite SerVides Group anoup: $92, % Security Ationear2301 Stanley Aventte tuitomr:n/a OrriSsaray: Signal Hill, Caffmnia GENnat N/A etwakeilimie Ralph Cardin -CeRivvoniAaiNcr N/A TELEPHONE NTr : CERT &mum Dim WA Ewa ralph@professionai-parldrigcom VENDORoaFEDERAL ID: NA1138: RMD1-loldinas LIC GaouP: AC013E $303, % LPL mananernent maintenance ADDREss: 63613Coventry Was Suite 175 Erman,: African American, fueling and washing of buses DrniswearP:Ctrerton, MO GEWER: Male CONTACT MANE Charles Hookkis CernpravomercrCUCP TaamomeNo: Wu EXPRAI1ON Dam N/A BAAL- thopkinsermdlaildingsconn 1D NAIOSS12930 VDPafety Ilt Uniforms, LTD $43, Uniforms AouRess: 11811:haker Blvd Suite 416 eninorm: African American CRYISTATETZIP: OH Gomm Female CoNTAcTNot Phoebe Lee CararTINGAGOlot cucp naephoneno: 404, ' CatFEXPIRATIONDifrE:- NIA Bacinfoevdasafetycom ID:

8 GENDER: VENDOR CERTIrnNGAßENCy:tA'f3CA Paqe2 ' SUBCONTRACTOR PARTICIPATION PLAN y, f iii64} ì00 f, " e A 4:0 ; iw ' T WAIL-Capital Office Products, Inc GRouP_ACDBE Supplies, V Dials, Receipt ADDREss:15840 Paper, Monte St #104 EnNrcxrYCaucasian Operational Forms CrmrSrATEJZia: Svltnar CA COnACTCar+dyNelson TEIE3öoNE No: BAAL:carQinnelSOncO>1c amad:cam GF1m83: Female CENT EXPIRATION DATE N/A VENDOR OR FEDERAL D): 1VAICS: HUB GRO[rP:OBE 28,500:00 41% PRCS Maintenance ADDru:ssá19S Hindry Ave, Suite B Erman: NIA CrrY/SmrEfZlp:InOelunod, CA GENOaíMA CORM= : MiCkey Asliar garmmaßeacrnla TELEPHONE Na Gen ExAaxnDS DATdNA aim: miciceyasgat@hlï6parkingcom VENDoRO1zFEDSZU ID: NA1CS: ETrNtcm: CITYISTñTEfZIP: GEIDBt CONTACT : CERTIFYING Ammer TELEPHONE NO: GM EIONRATmN DATE EMAt: VENDOR OR FEDERAL ID: NA1CS: GROW: CrrYI&mTEiZIP: GENDER: CONTACT : CERT1FYiNGAGENCY: TELEPHONE No: CERr EXPIRATION DATe EMAL: VENDOR aqtfenmat ID: NA1CS: CrTYiSTATT'IIZIP: Cantor Nam: TELEPHONE No: EMAtI: CtryfSntTEiZï?: CONTACT : TEL6NIONE No: (ieri'e1fingagsey: CezrE6rPIRAnON DATE: OR FEDERAL ID: idaics: r GENDEi CÉRT>Frl*NGAGENCY: CERT Bottom DATE VENDOR OR FEDERAL ID: NAiCS: ",c s t: RawAa72AYe

9 ClarnortiO u :!,:: : ::AribirriridirriOiriii':'CoriAMilii0Oialigribil j: PriliBribteiiiik4W -': t:l'ae-ppai/ro*1fieir:~gitiowigiat:wf We SUBCONTRACTOR PARTICIPATION PLAN Page 3, ED1NICTTY: DITWOUTErZIP: GENDOt CoNmerNAme AGENCY: TELEPHONE NO: CERr ExPRATiok DATE Ems:, VENDOR OR FEDERAL ID; NAIDS: Name ADDRESE CITYISTATE/ZIP: CONTACT ETTINCITY: GENDElt CERTIFYING AGENCY: TELEPHONE NO: CERT EXPERATION DATE BAAL VENDOR OR FEDERAL ID: NMS: CITYISTATEOP: CONTACT TELEPHONE No: ' Cur/STATE/7s: GDIDElt CEFNIFYINGAGENCT: MT EMNRAT1ON DATE: VENDOR OR FEDER& a NAICS: Gomm CONTACT CERTIFYINOi TEEFOONE No: CEAr ExPiRi Ewe: VENDOR OR NNW: 1 certify under the penalty &perjury that the information contained o contract is awarded to the above prime contractor 1 agree to comply all changes or substitutions must be authorized by LA WA Procurem end that the Nrms fisted are the subsonfractors that wit be utilized- ff thit s for additions and subetuffons, and ffurtherunrferefand and agree that any and Fier insilementrition Participation Level Proposed by Bidder/Proposer 513% January DATE Participation Level or Oa d Stated in the Request for Bid/Proposal: 5% SHE MANBE DBE X ACME Kendra Petty : Mice President Tom Rot RepAled7CE/14