Los Angeles World Airports

Transcription

1 Los Angeles World Airports 1M RESOLUTION NO BE IT RESOLVED that the Board of Airport Commissioners approved award of a six (6)-year Agreement to LAZ Parking California, LLC, with four (4) one-year extension options, for operation and management of the Lot C remote parking facility and the associated transportation system at Los Angeles International Airport, for cost not to exceed $61,500,000, as referenced in the Board-adopted staff report attached hereto and made part hereof; and LAX BE IT FURTHER RESOLVED that the Board of Airport Commissioners authorized the Chief Executive Officer to execute said Agreement upon approval as to form by the City Attorney and upon approval by the Los Angeles City Council; and LA/Oirtario Van Nuys City of Los Angeles BE IT FURTHER RESOLVED that the Board of Airport Commissioners found that the work can be performed more economically or feasibly by an independent contractor than by City employees; and Eric Garcetti Mayor Board of Airport Commissioners Valeria C. Veiasco Vice President BE IT FURTHER RESOLVED that the Board of Airport Commissioners found that the Request for Proposals process used in the competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City's interests; and Jeffery J. Daar Gabriel L. Eshaghian Beatrice C. Hsu Nolan V. Rollins Dr, Cynthia A. Telles BE IT FURTHER RESOLVED that the Board of Airport Commissioners found that LAZ Parking California, LLC is responsive and responsible, that entering into the Agreement is in the best interest of the City, and waive any informality in the proposal; and Sean O. Burton President Deborah Flint Chief Executive Officer BE IT FURTHER RESOLVED that 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 III Class 1(18)(c) of the Los Angeles City CEQA Guidelines; and BE IT FURTHER RESOLVED that 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. ooo I hereby certify that this Resolution No is true and correct, as adopted by the Board of Airport Commissioners at its Regular Meeting held on Thursday, March 17, Grace Miguel - Assistant Secretary BOARD OF AIRPORT COMMISSIONERS ii, 1 World Way Los Angeles California Mail RO. Box Los Angeles California Telephone Internet

2 Approvedjtyy^ BOARD O A fartsa Katpich, Dime Managemtent Los Angeles World Airports w a- REPORT TO THE i! ejrpqrt COMMISSIONERS Meeting Date: r-la, r, Lanoside Business 3/17/2016.* Jt & Reviewed by: Debbie Bowers, Db^uty Executive Director CAP Review: Completed Pending N/A Qst Reviewed for Date Approval Status By. City Morney Capital Budget 2/29/2016 SY N NA NE Deborah Flint - Chief Executive Officer Jfife Operating Budget CEQA 3/1/2016 SYD N DNA RW 3/4/2016 BY ON AE Procurement 3/3/2016 0Y DN Cond MT Guest Experience 3/2/2016 0Y DN 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 $61.5 million over the initial six-year term. RECOMMENDA TIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report 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. FIND that the work can be performed more economically or feasibly by an independent contractor than by City employees. Page 1, docx

3 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. 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. 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 $61.5 million over the initial six-year term. 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, April 16, Board Order AO-5058 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 (i.e. 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

4 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 fora 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

5 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 Customer Service Plan Marketing and Revenue Enhancement Plan Financial Capability 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 LAZ Parking California, LLC ABM Onsite Services West, Inc. Rank 1 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 $61.5 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 $61.5 million over the initial six-year term. These costs will be recovered through parking revenues. Page 4

6 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: 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 III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines. This item is subject to approval as to form by the City Attorney. 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. LAZ Parking California, LLC will comply with the provisions of the Living Wage/Service Contractor Worker Retention Ordinances. 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 6.11% ACDBE participation. LAZ Parking California, LLC will comply with the provisions of the Affirmative Action Program. 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. 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

7 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