,...") I BOARD OF AIRPORT COMMISSIONERS. SUBJECT: Approve the new employee parking rates for Los Angeles International Airport RECOMMENDATIONS:
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1 1 1 I 1 Pending 1 N/A _...04,, 1110"-ji 00.'4 Los Angeles World Airports REPORT TO THE BOARD OF AIRPORT COMMISSIONERS. Finance Approved by: Ner a Esguerra-Olivares, Director of Finance,...") I Reviewed by: Ryan P. Y9 ubik, Chief Financial Officer, Deputy Executive Dir: for ' a._ Atto a' Deborah Flint -"ALM" Officer Meeting Date: CAO Review: 1 10/18/2018 I=1 Iti,- ii NI Completed Reviewed for Date Approval Status By 9/10/2018 CEQA I 8/31/2018 Procurement I 8/31/2018 Guest Experience i 9/18/2018 Y N NA RW OY N JH ElY ON Cond MT [MY ON I BY Strategic Planning i 8/31/2018 CIY N NA KV SUBJECT: Approve the new employee parking rates for Los Angeles International Airport Set the new employee parking rates for Los Angeles International Airport effective January 1, 2019 for CTA and February 1, 2019 for non-cta parking facilities. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (31) of the Los Angeles City CEQA Guidelines. 3. RESCIND Resolution that set the prior non-cta employee parking rates for Los Angeles International Airport effective January 31, 2019 and Resolution that set the prior CTA employee parking rates for Los Angeles International Airport effective December 31, APPROVE new employee parking rates for Los Angeles International Airport effective January 1, 2019 for CTA and February 1, 2019 for non-cta parking facilities. Page 1 Employee Parking Rate Adj Board Report V3.1
2 DISCUSSION: 1. Purpose Approve new employee parking rates for Los Angeles International Airport (LAX) effective January 1, 2019 for CTA and February 1, 2019 for non-cta parking facilities. 2. Prior Related Actions September 10, Resolution The Board of Airport Commissioners (Board) adopted the Employee Parking Pass (EPP) Program governing employee parking at LAX Central Terminal Area (CTA) parking garages. October 4, Resolution The Board approved increased employee parking rate at Van Nuys (VNY) effective January 1, February 19, Resolution The Board approved increased employee parking rates at LAX effective July 1, 2013 and July 1, December 17, Resolution The Board established employee parking rates for the (CTA) effective January 1, Current Action LAWA maintains and operates three major remote parking lots to provide exclusive parking for employees at LAX. These lots have a combined total of approximately 6,700 parking spaces and are currently operating at full capacity. In addition, LAWA also owns and maintains a parking garage off Century Blvd (Lot F) that services both employee and public parking as well as various auxiliary lots and an RV lot. The cost of operating the three primary parking facilities has increased since the last parking rate adjustments in The cost of operating these three parking facilities escalated mainly due to expanded lot management and busing services implemented to accommodate increased demand. In addition, based on the extensive analysis of the comprehensive LAX parking needs, it was recommended that the Lot C / LAX Economy Parking be relocated in order to make way for the expansion of employee parking surrounding Employee Lot East, West and South. With this, staff anticipates further increases in operating costs due to the forecast need for additional buses and contractual increases in parking management fees that include wage increases mandated by the City of Los Angeles Living Wage Ordinance, which took effect in July Non-CTA Parking In FY 2019, projected revenues from operating the parking facilities requiring busing operations (Lots East, West, and South) at $11.13 million will not be enough to cover forecast operating expenses of $11.42 million. To allow for full recovery of these costs, staff Page 2 Employee Parking Rate Adj Board Report Val
3 requests the Board adopt the proposed employee parking rates as shown in the tables below: LOCATION NON-CTA PARKING CURRENT EFFECTIVE FEBRUARY 1, 2019 Lot East, Lot West, and Employee Lot South $55 Per Month $60 Per Month Remote Auxiliary Lots* $55 Per Month $60 Per Month Recreation Vehicle (RV) Lot $120 Per Month $155 Per Month Lot F** $75 Per Month No Change *Remote Auxiliary Lots include Imperial Cargo Complex parking lots, Imperial Terminal lots, Air Freight lots, and Lot A. ** Lot F parking rate will be reviewed when plans for the garage are established The proposed rates for non-cta parking as compared with other airports are shown below: AIRPORT CODE MONTHLY RATE San Francisco International Airport SFO $75/ Month Hartsfield-Jackson Atlanta International Airport ATL $65 / Month Los Angeles International Airport LAX $60 / Month John F. Kennedy International Airport JFK $50 - $70 / Month Dallas/Fort Worth International Airport DFW $48 / Month Denver International Airport DEN $36 / Month Chicago-O'Hare International Airport ORD $10-17 / Month CTA Employee Parking Pass Program (EPP) In addition to its regular employee parking offerings, LAWA has also made a limited number of spaces in its premium CTA parking area available to tenants seeking more immediate access to their CTA locations. These passes are subject to certain restrictions as described below. EMPLOYEE PARKING PASS PROGRAM (EPP) TYPE Employee Parking Pass*** Basic EPP**** - Allow parking in Low Demand garages(i.e., P1, P2a, P2b, and P7) with time duration of no more than 22 hours per entry Premium EPP - Allow parking in all CTA garages with time duration of no more than 30 days per entry Administrative Fees Activation Charge Replacement Card CURRENT $200 Per Month $400 Per Month $25 $25 EFFECTIVE JANUARY 1, 2019 $240 Per Month $480 Per Month *** EPP Policies and Procedures apply. **** Airline connector bus is available as a public transport option for employees with Basic EPP who park in a different CTA garage from their respective work terminal to commute to work. $30 $30 Page 3 Employee Parking Rate Ad] Board Report_V3.1
4 VNY Employee Parking Given that the employee parking operation at VNY is expected to continue to break-even in the foreseeable future, staff requests the Board retain the current VNY employee parking rate of $20 per month as adopted by Board Resolution How this action advances a specific strategic plan goal and objective This action advances this strategic goal and objective: Sustain a Strong Business: Diversify and grow revenue sources, and manage costs. The increase in Lot East, Lot West, and Employee Lot South will allow LAWA to breakeven on its LAX remote employee parking lots that required busing operations. This action will increase the overall revenue from employee parking operations by approximately $852,000 in FY Action Requested Staff requests the Board approve the proposed employee parking rates at LAX effective January 1, 2019 for CTA parking, effective February 1, 2019 for non-cta parking, and restate the current employee parking rate at VNY in this action. Staff also requests the Board rescind Resolution that set the prior non-cta employee parking rates for LAX effective January 31, 2019 and Resolution that set the prior CTA employee parking rates for LAX effective December 31, Fiscal Impact Approval of the proposed employee parking rates will increase gross revenue generated in LAX's three primary employee parking areas requiring busing by approximately $506,000 in FY This increase in revenue is projected to be sufficient to cover all costs associated with these lots. In addition, LAWA expects to generate additional incremental revenue from other ancillary parking facilities of approximately $346,000 in FY However, if rates stay at the current level, LAWA expects to incur an operating loss from its three primary employee parking areas requiring busing of approximately $292,000 in FY Alternatives Considered Subsidize future employee parking costs By taking no action and leaving the employee parking rates at the current level, LAWA is foregoing the opportunity to recover increased operating expenses of $2.78 million in FY 2019 from its three primary employee parking lots. This reduces LAWA's cash flow available to fund operations and future debt service that would support capital projects. Increase employee parking rates to higher levels Although it is not uncommon for employees in Los Angeles and the surrounding areas to pay higher monthly fees for parking, staff recognizes the financial challenges for LAX workers and strives to offer the most cost effective parking option possible by targeting rates for our three primary employee lots that are sufficient to cover the cost over their operation. Page 4 Employee Parking Rate Adj Board Report V3. 1
5 APPROPRIATIONS: No appropriation of funds is required for this action. Appropriations for future improvements to employee parking lots and for costs of their operation will be requested through separate actions. STANDARD PROVISIONS: 1. Establishment or modification of any rate, fee or charge is categorically exempt from California Environmental Quality Act (CEQA) requirements pursuant to Article Ill, Class 1 (31) of the Los Angeles City CEQA Guidelines. 2. This action does not require the City Attorney's approval. 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 This action is not subject to the provisions of the Worker Retention and Living Wage Ordinances. 5. This action is not subject to the provisions of the Small Business Enterprise, Local Business Enterprise/Small Local Business Enterprise, and Disabled Veterans Business Enterprise Programs. 6. This action is not subject to the provisions of the Affirmative Action Program. 7. This action does not require a Business Tax Registration Certificate. 8. This action is not subject to the provisions of the Child Support Obligations Ordinance. 9. This action is not subject to the insurance requirements of the Los Angeles World Airports. 10. This action is not subject to the provisions of City Charter Section 1022 (Use of Independent Contractors). 11. This action is not subject to the provisions of the Contractor Responsibility Program. 12. This action is not subject to the provisions of the Equal Benefits Ordinance. 13. This action is not subject to the provisions of the First Source Hiring Program. 14. This action is not subject to the provisions of Bidder Contributions CEC Form 55. Attachment: Employee Parking Map Page 5 Employee Parking Rate AO Board Report V3.1
6 LEGEND Lot East Lot West. and Employee Lot South Remote Auxiliary Lots Recreation Vehicle (R,0 Lot of
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