[0:01] Good morning, everyone.

[0:04] Morning!

[0:05] Good morning.

[0:06] Good morning and welcome

[0:07] to the Board of Airport

[0:08] Commissioners Special Meeting

[0:10] on July 9th, 2026.

[0:12] This meeting is now called

[0:13] to order at 10 a.m.

[0:16] Please call the roll.

[0:18] Commissioner Daniels.

[0:20] Here.

[0:21] Commissioner La Bau.

[0:22] Present.

[0:23] Commissioner Narro.

[0:24] Here.

[0:25] Commissioner Roxborough.

[0:26] Here.

[0:27] Commissioner Velasco.

[0:28] Vice President Aramayo.

[0:29] Present.

[0:30] President Johnson is absent.

[0:33] Thank you.

[0:34] Before anything else...

[0:35] I do want to welcome our new

[0:37] board member, Commissioner

[0:38] Daniels.

[0:45] Congratulations on your recent

[0:46] appointment.

[0:47] I know I speak for the board

[0:48] when I say we look forward

[0:49] to working with you, and I'd

[0:51] like to welcome you

[0:52] to share a few words,

[0:53] if you'd like.

[0:55] Thank you very much, Vice

[0:56] Chair, President Aramayo

[1:02] for allowing me a few minutes

[1:03] to introduce myself.

[1:05] Many people in...

[1:06] the significant part

[1:11] of my career started here.

[1:14] Honor.

[1:19] But first, I'd like to thank

[1:20] the mayor for having the trust

[1:23] to appoint me. It is not

[1:27] something that I sought, it

[1:29] sought me, but I look forward

[1:33] to working with,

[1:35] learning from the public, this

[1:37] is a different vantage point

[1:40] for where my background, you

[1:43] may not know, but I started my

[1:47] career as a civil rights

[1:48] attorney.

[1:50] I thought that would be all

[1:52] that I would do.

[1:54] I loved working with civil

[1:55] rights issues. Access the

[1:57] opportunity that led

[2:01] to legislative counsel for the

[2:02] DC public schools were

[2:05] educational policy and

[2:06] budgetary issues and

[2:09] through the quality

[2:10] of education for Urban children

[2:13] which led to me joining Marriott

[2:16] Corporation on behalf

[2:18] of the DC...

[2:21] to develop a career academy

[2:22] for those kids who are not

[2:24] going to be going college,

[2:25] to a career that would lead

[2:27] to opportunities

[2:29] in the hospitality industry.

[2:31] It led me to actually go

[2:32] to work for Marriott

[2:33] to develop their first

[2:34] National Minority Purchasing

[2:36] Program and will seem

[2:38] like desperate jobs, but

[2:40] for me, there was a consistent

[2:42] line that was creating

[2:43] opportunity for those who don't

[2:46] have our opportunities at a

[2:50] better future. The mission at

[2:57] Marriott, Marriott ended up

[2:58] buying that

[3:00] time Host International which

[3:01] was the largest concession in

[3:05] the US at the time.

[3:07] That led to me moving from DC

[3:10] to Santa Monica where I became

[3:12] an adult at national response

[3:16] major airports. The first in the

[3:18] country.

[3:20] I left Marriott, I left host

[3:22] to join Aramark, president

[3:25] of a division where I ran

[3:27] business in their

[3:28] K-12 and their college training

[3:30] program which led me

[3:33] to starting my own company...

[3:36] ...Inc., based here in Los

[3:38] Angeles. 1996 we

[3:40] actually opened on Dr.

[3:41] Kingsburg of 1996, I mean

[3:46] January 6, 15, 1996, small

[3:51] facility

[3:52] on Bradley facility. We grew

[3:55] that business from one

[3:56] location to 50 locations in nine

[3:59] airports. That's because LAX

[4:01] gave me an opportunity. I

[4:04] learned a business really here

[4:06] at LAX.

[4:07] I learned a lot of things here

[4:08] at LAX and I hope that many of

[4:11] those learnings served me well

[4:13] as a commissioner.

[4:14] However, that was then and this

[4:17] is now.

[4:18] I realize my era at LAX

[4:22] standpoint

[4:23] of being an advocate sitting

[4:24] out where you sit is very

[4:25] different now in the role that

[4:27] I will play as a commissioner.

[4:28] I have to have a much broader

[4:30] perspective.

[4:31] I have to realize all

[4:32] of the various stakeholders,

[4:34] starting with the people,

[4:35] starting with the airlines,

[4:36] starting with all the people

[4:38] who make this airport such.

[4:39] I want to thank commissioners

[4:42] for their warm welcome.

[4:44] I've got a lot

[4:45] to learn.

[4:46] I plan to be a good team

[4:47] member.

[4:48] I plan to lean on my other

[4:49] commissioners

[4:50] to learn.

[4:51] I plan to work with this great

[4:52] staff to continue

[4:53] to make LAX a great airport.

[4:54] So, Vice Chair, Maya,

[4:58] Aramaya.

[5:00] Forgive me if I said it

[5:01] incorrectly.

[5:02] Thank you for the opportunity

[5:03] to say a few words.

[5:04] And, Commissioners, thank you

[5:05] for your warm welcome.

[5:06] Thank you.

[5:13] The Board will now hold its

[5:14] annual election

[5:15] of officers pursuant to City

[5:16] Charter Section 503A.

[5:19] Could we please hear

[5:20] nominations for the position

[5:21] of President?

[5:23] I will make a motion.

[5:24] Thank you.

[5:25] Thank you, Commissioner

[5:26] La Bau.

[5:27] I'll second it.

[5:28] Thank you.

[5:29] A second from Commissioner

[5:30] Roxborough.

[5:32] Are there further nominations

[5:33] for that position?

[5:35] Did you nominate Matt

[5:36] Johnson?

[5:37] Yeah, Matt Johnson.

[5:38] Thank you.

[5:39] I wanted to make sure.

[5:42] Hearing no other nominations,

[5:43] could I please have a motion

[5:45] to approve President Matt

[5:48] Johnson?

[5:50] I will make the motion, yes.

[5:51] Thank you, Commissioner

[5:52] La Bau.

[5:53] Second?

[5:54] Second.

[5:55] Thank you, Commissioner

[5:56] Roxborough.

[5:57] All those in favor,

[5:58] please say aye.

[5:59] Aye.

[6:00] Any opposed?

[6:02] The ayes have it.

[6:05] I'd now like

[6:06] to take nominations

[6:07] for the position

[6:08] of vice president.

[6:10] I would like

[6:11] to nominate the awesome

[6:13] Vanessa Aramayo.

[6:16] Second.

[6:17] Thank you, Commissioner

[6:18] Narro, and thank you,

[6:19] Commissioner Velasco.

[6:20] Are there any further

[6:21] nominations

[6:22] for that position?

[6:24] Hearing none, I have a motion

[6:25] to approve the nomination

[6:29] from Commissioner...

[6:32] I'll make that motion.

[6:33] ...Narro, thank you,

[6:34] and the second from

[6:35] Commissioner Velasco. All those

[6:38] in favor, please say aye.

[6:39] Aye.

[6:40] Any opposed?

[6:42] The ayes have it.

[6:43] Thank you very much,

[6:44] Commissioners,

[6:45] for your trust.

[6:46] I look forward to continuing

[6:48] to work alongside you and the

[6:50] Los Angeles World Airport.

[6:53] In President Johnson's absence,

[6:54] I will provide the opening

[6:56] remarks and chair today's

[6:57] meeting.

[7:00] Earlier this morning, several

[7:01] commissioners joined members of

[7:02] the LAWA team and our airline

[7:04] partners for this year's LAX

[7:05] Fly Quieter Awards.

[7:07] The Fly Quieter program, now

[7:09] in its sixth year, is an

[7:11] education and recognition

[7:12] program designed to encourage

[7:14] quieter airline operations

[7:15] by commercial air carriers

[7:17] at LAX.

[7:18] Representatives from these

[7:19] airlines who you were

[7:21] recognized

[7:22] at the ceremony this morning,

[7:23] are here with us today.

[7:24] And CEO Ackerman will go

[7:26] into this in a bit

[7:27] for more detail

[7:28] during his management report.

[7:29] But for now, I'd like

[7:30] to invite the honorees to stand

[7:32] and receive acknowledgement

[7:33] for their efforts.

[7:44] Congratulations again,

[7:45] and thank you for your work.

[7:48] When we last met,

[7:49] a few short weeks ago, our city

[7:50] and our airports were just

[7:52] beginning to welcome the world

[7:53] for the FIFA World Cup.

[7:55] Today we are nearing the

[7:56] conclusion

[7:57] of the tournament here

[7:59] in our city and I want

[8:00] to thank, I want

[8:01] to take a moment to recognize

[8:02] the extraordinary effort that

[8:03] has gone

[8:04] into making this a success here

[8:05] at the airport.

[8:07] I want to thank the LAWA

[8:08] team, our airline and airport

[8:10] partners, the federal agencies,

[8:12] the first responders,

[8:13] volunteers,

[8:15] and everyone who has worked

[8:16] tirelessly and often

[8:17] behind the scenes to ensure the

[8:19] airports have remained safe,

[8:20] secure, welcoming, and

[8:23] efficient throughout the entire

[8:24] tournament.

[8:26] Your professionalism has been

[8:27] on full display, and you have

[8:29] represented both our airports

[8:30] and our city exceptionally

[8:31] well.

[8:33] As visitors begin their

[8:34] journeys home or

[8:35] on the next round

[8:36] of tournament

[8:37] over the coming days,

[8:38] we can all take pride in the

[8:39] role our airports have played

[8:40] in helping Los Angeles shine

[8:42] on the world stage.

[8:46] Moving on, just a few days ago

[8:48] we also celebrated the 4th of

[8:49] July.

[8:50] While many of us had the

[8:51] opportunity to spend time

[8:52] with family and friends, we all

[8:54] know that our airports never

[8:55] close.

[8:56] Holidays are often our busiest

[8:58] travel periods and that means

[8:59] thousands

[9:00] of dedicated employees are

[9:01] on the job.

[9:02] Keeping operations running,

[9:04] assisting passengers,

[9:05] maintaining our facilities,

[9:07] ensuring public safety,

[9:08] and supporting every aspect

[9:09] of airport operations.

[9:12] To all our frontline employees

[9:13] and airport partners who

[9:14] worked...

[9:15] through the holiday weekend,

[9:16] thank you.

[9:18] Your commitment and

[9:19] professionalism allow millions

[9:20] of travelers to safely reach

[9:21] their destinations regardless

[9:23] of the day on the calendar.

[9:26] Finally, I'd like

[9:27] to acknowledge that President

[9:29] Johnson is not

[9:30] with us today due

[9:31] to a recent and unexpected loss

[9:33] in his family.

[9:35] Our hearts are

[9:36] with him and his loved ones

[9:37] during this extremely difficult

[9:38] time.

[9:39] On behalf of the Board of

[9:40] Airport Commissioners and

[9:41] everyone at LAWA, we extend our

[9:43] deepest condolences and

[9:44] support.

[9:45] Please join me in observing a

[9:47] brief moment of silence

[9:48] for the Johnson family.

[9:59] Thank you.

[10:07] And now I'd like to move

[10:08] to CEO Ackerman's management

[10:11] report and update.

[10:12] Mr. Ackerman?

[10:14] Thank you very much, Vice

[10:15] President Aramayo.

[10:17] I'm going to start my update

[10:18] with our key report indicators.

[10:20] It's, again, a snapshot

[10:21] of our performance at LAX and

[10:22] VNY, in this case, May and

[10:24] June.

[10:25] Overall revenue is up 3%

[10:27] compared to last year, with

[10:28] parking revenue up strongly 4%.

[10:31] Cargo continues

[10:32] to perform well,

[10:33] increasing 12% year

[10:35] over year.

[10:36] And our ASQ cleanliness scores

[10:38] improved this month, reflecting

[10:39] the dedication and the hard

[10:41] work of our custodial team.

[10:42] And as we reach the two-year

[10:43] countdown

[10:44] to the opening ceremony, again,

[10:45] two years to the Olympics, we

[10:47] continue to invest in the

[10:48] people and preparations needed

[10:50] to support this historic event.

[10:52] Our ambassadors are working

[10:53] to ensure our airports are

[10:54] ready to welcome the world

[10:55] every day.

[10:58] As Vice President Aramayo

[10:59] mentioned, this morning we

[11:00] recognized representatives

[11:01] from nine major airlines

[11:02] at LAX for their efforts

[11:03] to reduce noise

[11:04] from aircraft operations as

[11:05] part of LAWA's Fly Quieter

[11:06] program.

[11:08] You can see their logos up

[11:09] on the screen.

[11:10] These airlines are rated

[11:11] in performance, rated

[11:12] in accordance

[11:13] with five scoring elements and

[11:15] within three categories based

[11:16] on the number

[11:17] of average daily operations

[11:18] at LAX.

[11:20] The Fly Quieter program is also

[11:21] the first commercial airport

[11:23] fly quiet program in the nation

[11:24] that allows airlines

[11:25] to earn additional bonus points

[11:26] for voluntarily using noise

[11:28] mitigating technology on

[11:29] aircraft and importantly

[11:32] engaging with community and

[11:33] stakeholders such as

[11:34] participating in the LAX

[11:35] Community Noise Roundtable.

[11:38] We heard this morning that

[11:39] because of the efforts

[11:40] of a couple

[11:41] of these airlines, we have had

[11:42] airline representatives

[11:43] at 100% of our community

[11:45] meetings,

[11:46] you know, talking to neighbors

[11:48] about the impact they have and

[11:49] explaining, you know,

[11:50] from the airline and from an

[11:51] actual pilot's perspective,

[11:52] you know, what they're doing

[11:53] to make less impact

[11:55] on the neighbors.

[11:56] So, we're really grateful to the

[11:57] airlines that helped us get

[11:58] to 100 percent this year.

[12:01] As of July 1st, all critical

[12:03] LAX facilities are powered

[12:05] by receiving station X,

[12:07] also known as RSX.

[12:09] This project is a partnership

[12:11] between LAWA and LADWP, and

[12:13] it's been years and literally

[12:14] years in the making.

[12:16] And it's aimed at addressing

[12:17] the persistent power

[12:18] reliability, redundancy, and

[12:20] capacity issues that we've

[12:21] suffered for years at LAX.

[12:23] And as a result

[12:24] of this effort, we now have a

[12:25] dedicated, state-of-the-art,

[12:26] high-quality, reliable, and

[12:29] resilient power system that has

[12:31] sufficient capacity.

[12:32] This project was completed

[12:34] over several years, all without

[12:35] serious injury or mishap.

[12:37] And that's thanks

[12:38] to the hundreds of LAWA, LADWP,

[12:40] you know, city family

[12:41] contractors and partners who

[12:42] planned, engineered, and

[12:43] constructed,

[12:45] and commissioned this project.

[12:46] And if I'm not mistaken, this

[12:47] is the first receiving station

[12:49] that has been built in Los

[12:51] Angeles in more than 30 years.

[12:53] We were with very senior DWP

[12:55] leaders a few months ago

[12:57] at the facility,

[12:58] and they had been

[13:00] at the agency

[13:02] for more than three decades,

[13:03] and this is the first receiving

[13:04] station that they had seen.

[13:06] So we're proud

[13:07] to build it here.

[13:09] World Cup festivities.

[13:11] Commissioner Aramayo also

[13:12] mentioned our vital role

[13:13] in shaping the first impression

[13:15] of the city for millions

[13:16] of global visitors,

[13:17] and in recognition

[13:18] of the teamwork that went

[13:19] into preparing for the 2026

[13:21] World Cup, we provided select

[13:22] employees the chance

[13:24] to be a part

[13:25] of the excitement firsthand.

[13:26] Eligible employees were invited

[13:27] to participate in a raffle

[13:28] for exclusive World Cup

[13:29] experiences,

[13:30] including admission

[13:31] to the official FIFA Fan

[13:32] Festival at the Coliseum.

[13:34] And additionally, our HR team

[13:36] hosted a special celebration

[13:37] for the World Cup World Round

[13:40] 32 watch party and our brand

[13:42] new break room and patio area

[13:43] on the fifth floor

[13:44] of this building.

[13:45] Members of Team LAWA enjoyed a

[13:46] rooftop tailgate, snacks,

[13:49] and got some of the matches on

[13:52] big screen TVs and gave

[13:53] everybody a front row feel.

[13:56] And we deliberately purchased

[13:58] tickets to this event and we

[13:59] sent our employees because our

[14:01] employees are what made us so

[14:03] successful.

[14:04] And what really made this

[14:05] airport show so well as the

[14:07] world came in.

[14:08] So, we sent our own employees

[14:09] to the event.

[14:12] Last weekend, Team LAWA

[14:13] celebrated America's 250th

[14:15] birthday by marching

[14:16] in the LAX Coastal Chamber of

[14:17] Commerce Westchester Fourth

[14:19] of July Parade.

[14:20] LAWA entry featured the airport

[14:22] affairs team along with LAX

[14:23] Pups and the Airport Police's

[14:26] Bearcat Motors Unit and Cadets.

[14:27] The Greater San Fernando

[14:30] Valley Chamber it Chambers

[14:32] Hats Off Gala VNYs' Airport

[14:33] was honored with the Captains

[14:35] of Industry Aviation Award,

[14:37] recognizing its leadership and

[14:38] continued impact on the

[14:39] region's aviation industry.

[14:41] Its prestigious recognition

[14:43] highlights VNYs' commitment

[14:44] to operational excellence,

[14:46] community partnership,

[14:47] and its vital role

[14:48] in supporting families in the

[14:49] San Fernando Valley.

[14:51] Congratulations to the entire

[14:53] VNYs' team

[14:54] on this well-deserved honor.

[14:57] All while marked an exciting

[14:58] milestone for the Airfield and

[15:00] Terminal Modernization

[15:01] Program, or ATMP as we lovingly

[15:03] call it, with the completion

[15:05] of the ATMP Showroom.

[15:06] It's a new space designed to

[15:07] showcase the vision and the

[15:09] impact of this project

[15:10] on the neighborhood.

[15:11] Located next door at Skyview

[15:13] South, the showroom serves as

[15:14] an interactive hub where team

[15:16] members, stakeholders, and

[15:17] partners can explore how the

[15:18] ATMP Roadway Improvements

[15:20] Project is enhancing safety,

[15:22] improving traffic flow,

[15:23] and modernizing access

[15:24] to LAX.

[15:26] Drawing on project visuals,

[15:27] displays, and storytelling, the

[15:29] space highlights the scale and

[15:30] significance of one of the

[15:31] airport's most transformative

[15:33] infrastructure efforts.

[15:35] The project team is planning an

[15:36] ATMP showroom community open

[15:38] house later this month that

[15:39] will allow guests to experience

[15:40] the space and learn more about

[15:41] the work shaping the future

[15:42] of LAX.

[15:45] Last month we welcomed 36 new

[15:47] team members across various

[15:49] divisions and groups and as

[15:50] always if you see these faces

[15:51] up on the screen around campus

[15:53] please say hello.

[15:55] I give them a warm welcome to

[15:56] Team LAWA and as always, a shout

[15:59] out

[16:00] to the amazing LAWA HR team

[16:01] for continuing to recruit high

[16:03] quality teammates to join,

[16:06] to join our efforts.

[16:07] Thank you.

[16:08] And speaking of high-quality

[16:10] folks, in June, a total of 41

[16:12] summer interns were hired and

[16:14] placed in groups

[16:15] across LAX and VNYs',

[16:16] including Airport Development

[16:18] Group, Airport Affairs,

[16:19] Finance, Accounting, HR,

[16:20] Operations and Maintenance,

[16:22] Government Affairs, Badging,

[16:23] APD, Guest Services, and more.

[16:26] These talented students bring

[16:27] fresh perspectives.

[16:28] They bring enthusiasm

[16:30] to LAWA.

[16:31] They're going to have the

[16:32] opportunity

[16:33] to learn alongside some of the

[16:34] industry's very best

[16:35] professionals.

[16:39] I want to close

[16:40] on a bit of a sad note, I end my

[16:43] report today with the news

[16:44] of the recent passing

[16:45] of two valued members

[16:46] of our LAWA family.

[16:48] Enrique Guerra and Rodney

[16:50] Rigomaro. Mr. Guerra worked as

[16:52] a custodian in Terminal 4

[16:54] at the time of his passing. He

[16:56] began his career with the city

[16:58] of Los Angeles in January, 23.

[17:00] He was laid to rest in his

[17:01] home, home country of

[17:03] Guatemala.

[17:04] Mr. Rigomaro was an airport

[17:06] superintendent

[17:07] of operations and passed away

[17:08] on June 30th.

[17:10] He began his career with the

[17:11] city is as a management

[17:12] assistant

[17:13] in the personnel department

[17:14] in February of 1981.

[17:16] Our thoughts are

[17:17] with their colleagues,

[17:18] friends and loved ones

[17:19] during this difficult time.

[17:21] And this concludes my CEO

[17:22] update.

[17:24] Thank you, Mr. Ackerman.

[17:25] Are there any speakers

[17:26] on this presentation?

[17:27] There are no speakers

[17:28] on this presentation.

[17:31] Does any commissioner have any

[17:32] questions

[17:33] on the CEO's update?

[17:39] If there are no further

[17:40] questions or comments

[17:41] from the Board, we will now

[17:42] move to the next item

[17:43] of business.

[17:45] I'd like to invite

[17:46] Commissioner La Bau to provide

[17:47] a brief report regarding the

[17:49] recent Security Committee

[17:50] meeting held on June 18th.

[17:52] Yes, thank you.

[17:54] The Board Security Committee

[17:55] meeting convened on Thursday,

[17:56] June 18th, 2026,

[17:58] to receive a briefing from

[17:59] Deputy Executive Director of

[18:00] Public Safety and Security,

[18:02] Martin Elam, and our Airport

[18:04] Chief of Police, Cecil

[18:05] Rambo.

[18:07] The briefing provided a

[18:08] comprehensive overview

[18:09] of the LAX Police Department's

[18:11] public safety staffing

[18:12] validation and the workforce

[18:14] optimization assessment.

[18:16] And some

[18:17] of the things that we spoke

[18:18] about were key assessment

[18:19] findings, peer benchmarking

[18:21] efforts, ongoing stakeholder

[18:23] engagement,

[18:24] and strategic planning

[18:25] for the future direction

[18:26] of LAX PD.

[18:29] This briefing also included a

[18:31] very important virtual

[18:32] discussion addressing several

[18:33] critical focus areas.

[18:35] We spoke about the patrol

[18:37] deployment strategies

[18:38] for the airport,

[18:39] workforce sustainability for

[18:41] our police and security

[18:42] professionals, the utilization

[18:44] of civilian and security

[18:46] personnel

[18:47] in keeping our airport safe,

[18:48] transit security readiness,

[18:50] and alignment with aviation law

[18:52] enforcement best practices

[18:54] around the country.

[18:56] The committee extends our

[18:57] sincere appreciation as well

[18:59] to the following individuals

[19:00] for their contribution and

[19:01] expertise in this.

[19:03] Assistant Chief Mark Hamilton

[19:05] from the Dallas-Fort Worth

[19:06] Airport, Deputy Chief Timothy

[19:08] Tyler from the Metropolitan

[19:09] Washington Airports

[19:11] Authority, which is Dulles and

[19:13] Reagan, Mike Villa, Director

[19:15] of Security and Emergency

[19:17] Management, and Chief Sean

[19:18] Guillabo from the Seattle

[19:20] Airport, as well as Major

[19:21] David Wilson from the Atlanta

[19:23] Airport, and lastly, Kevin

[19:26] Murphy, the Executive Director

[19:27] of ALEEN, the Airport Law

[19:29] Enforcement Agency's Network.

[19:31] I'd really like

[19:32] to also recognize Martin Elam

[19:35] and Chief Cecil Rambo and their

[19:38] respective teams

[19:39] for their continued dedication

[19:41] in maintaining airport safety

[19:43] and security.

[19:44] Thank you.

[19:45] My report's concluded.

[19:48] Thank you, Commissioner La

[19:49] Bau.

[19:50] Moving on to general public

[19:51] comments,

[19:52] for everyone's information,

[19:54] as a courtesy and

[19:55] for the first time, we will be

[19:56] testing...

[19:57] testing a live language

[19:59] interpretation through

[20:00] real-time translated text

[20:01] displayed on the screen

[20:03] during the meeting.

[20:05] Please note that this is a

[20:06] pilot program and the accuracy

[20:07] of the real-time translated

[20:09] text may vary.

[20:11] This is the same information

[20:12] that has been provided to all

[20:13] the speakers here today.

[20:14] Are there any speakers

[20:15] on non-agenda items?

[20:18] Madam Chair, we actually have

[20:19] eight speakers

[20:22] for general so far.

[20:24] Thank you.

[20:25] Would you please...

[20:29] Call them up.

[20:31] Thank you, Vice President,

[20:33] Aramayo, at this time, could I

[20:35] please request the following

[20:36] speakers to please line up

[20:39] by the windows

[20:40] in the order I call

[20:41] out your name.

[20:44] Steve Bills, Jason Irani,

[20:50] Marina Zamora, and Maria

[20:54] Lorena Herrera.

[20:57] Now as they come up, I will add

[20:59] as a reminder that general

[21:00] public comments must be related

[21:02] to Los Angeles World Airport

[21:03] business.

[21:08] Could you please tell me again

[21:10] how many speakers we have?

[21:14] And let us give each speaker

[21:15] one minute.

[21:21] When your name is called again,

[21:22] please come forward

[21:23] to the lectern, speak directly

[21:24] into the microphone and state

[21:25] your name.

[21:27] Before you begin your comments,

[21:30] Steve Bills, please go

[21:33] to the lectern, state your

[21:34] name,

[21:35] and provide your comments.

[21:39] Good morning, Commissioners.

[21:40] My name is Steve Bills.

[21:41] I am here on behalf of the

[21:42] workers testing the APM system.

[21:45] I am the business agent

[21:46] for IUEC Local 18, the union

[21:48] that represents these workers.

[21:50] For years, these highly skilled

[21:52] workers have been testing this

[21:53] train for Alstom

[21:55] while receiving wages and

[21:57] benefits well

[21:58] below the prevailing rates.

[21:59] Rather than strike, these

[22:01] workers followed the project

[22:02] labor agreement and pursued

[22:04] their claims through the

[22:05] grievance and arbitration

[22:06] process at significant expense

[22:09] to the union.

[22:10] The arbitrator found that

[22:12] Alstom and Links has failed to

[22:14] pay the wages and benefits

[22:15] required by the PLA.

[22:17] Alstom has since refused

[22:19] to comply with the arbitration

[22:21] decision and has shamefully

[22:23] refused

[22:24] to pay the arbitrator's fee.

[22:27] Now, Alstom has sued the union

[22:29] and is asking the court to

[22:32] invalidate the very dispute

[22:33] resolution process established

[22:35] under the PLA.

[22:37] Instead of paying wages and

[22:39] benefits these workers earned,

[22:41] Alstom is forcing the union.

[22:43] Thank you.

[22:44] Thank you.

[22:47] Jason Eroni, please go to the

[22:50] lector and state your name and

[22:52] provide your comments.

[22:54] Hi, good morning, Jason

[22:55] Eroni.

[22:56] I was a...

[22:57] I was a bidder on a bid that

[23:00] was out in February.

[23:01] I was the lowest bidder

[23:03] by a factor of three

[23:04] from the next one.

[23:06] I was found to be

[23:07] non-responsive.

[23:08] I protested it.

[23:09] The protest, as you can see

[23:10] with the paperwork that you

[23:11] have on you, the LAWA letter,

[23:13] the protest did not go

[23:15] anywhere.

[23:16] LAWA says it was duly received

[23:18] and remains on record, but

[23:19] there should be a binary

[23:20] response to that, either upheld

[23:22] or rejected.

[23:24] LAWA then went ahead and

[23:25] flip-flopped and they accepted

[23:26] us as responsive

[23:28] in the letter. As you can see

[23:29] and highlighted, but they went

[23:30] to do a novel approach and they

[23:32] said we're gonna split. We're

[23:33] gonna cherry pick the line

[23:34] items

[23:35] from your bid. The lowest bid

[23:37] in the next bidder up,

[23:38] which is completely not in line

[23:40] and they referenced some City

[23:43] of Los Angeles Charters.

[23:45] I included in the letter.

[23:46] There is no Charter, it, there's

[23:49] no rule that says you can split

[23:50] a bid.

[23:51] Nobody would bid such a thing.

[23:52] You're going to get this item

[23:54] for approval next month.

[23:56] Please take a look at it.

[23:57] I'll probably be here again

[23:58] to talk about that then.

[23:59] Thank you very much.

[24:00] Thank you.

[24:03] Marina Zambora, please go

[24:05] to the lectern, state your

[24:07] name,

[24:08] and provide your comments.

[24:16] Buenos d?as para todos,

[24:18] comisionados.

[24:20] Mi nombre es Marina Zamora y

[24:21] trabajo en Flying Food Group.

[24:26] I'm sorry, no translation?

[24:28] La traducci?n...

[24:30] The translation is

[24:31] on the screen.

[24:32] Oh, that's okay.

[24:33] It's in the screen.

[24:34] Esta en la pantalla.

[24:35] Thank you. Gracias.

[24:36] Want her time restarted?

[24:37] Yes, please restart her time.

[24:40] En el ?rea de alimentos fr?os,

[24:41] estoy aqu? porque nos

[24:44] enfrentamos a

[24:45] condiciones de seguridad

[24:47] aterradoras en el trabajo.

[24:50] OSHA ya ha emitido m?ltiples

[24:53] multas contra Flying Food

[24:55] Group,

[24:56] por fallas cr?ticas de

[24:59] seguridad, incluyendo cerrar

[25:00] una puerta de salida con llave

[25:03] desde el exterior durante una

[25:05] l?nea de protesta planificada

[25:08] por los trabajadores, y tener

[25:12] cuartos fr?os que no se abr?an

[25:14] desde adentro.

[25:21] Todo empeor? aun m?s el 22 de

[25:24] enero de 2026, cuando estall?

[25:27] un incendio y dos de mis

[25:30] compa?eros de trabajo se

[25:34] quedaron atrapados dentro de un

[25:36] cuarto fr?o cerrado con llave.

[25:39] Nos hemos presentado ante LAWA

[25:41] y hemos testificado 50 veces

[25:44] sobre esto.

[25:45] Thank you.

[25:46] Muchas gracias.

[25:47] I'm sorry.

[25:48] Thank you.

[25:50] Before I call the next speaker,

[25:53] can I please request the

[25:54] following set of speakers to

[25:56] please line up by the windows

[25:57] in the order I call

[25:59] out your name.

[26:02] Kenya Nazario, Estela Ruiz,

[26:07] Alvaro Suarez, and Esperanza

[26:11] Maciel.

[26:15] Maria Lorena Barrera, please

[26:17] step up to the lectern,

[26:19] state your name,

[26:20] and provide your comments.

[26:21] Thank you.

[26:24] Gracias.

[26:25] Buenos d?as a todos.

[26:27] Mi nombre es Lorena Barrera y

[26:30] trabajo en el ?rea de comida

[26:32] friar en Flying Fruit Group.

[26:36] Las violaciones de Flying

[26:38] Fruit Group son repetidas.

[26:44] Se extiende desde el robo de

[26:46] salario,

[26:47] severas violaciones de

[26:51] seguridad,

[26:53] OSHA violaciones de la

[26:57] seguridad p?blica, del CHP,

[27:01] hasta represalias ilegales.

[27:04] Esta compa?a ha probado que no

[27:07] respeta ni la ley, ni los

[27:10] trabajos, ni a los

[27:13] trabajadores, que hemos dado

[27:20] evidencias de puertas

[27:23] en llevadas durante incendios,

[27:25] sueldos robados,

[27:27] y represalias ilegales.

[27:29] Gracias.

[27:34] Kenya Nazario, please go to the

[27:36] lectern and please speak

[27:38] directly into the microphone so

[27:40] everyone can hear you,

[27:41] state your name,

[27:42] and provide your comments,

[27:44] please.

[27:45] Muy buenos d?as.

[27:46] Mi nombre es Kenya Nazario.

[27:47] Gracias por darnos la

[27:49] oportunidad de estar aqu? y

[27:50] poder...

[27:51] decir realmente lo que es.

[27:53] El d?a de hoy estamos un grupo

[27:55] de empleados de Flying Food

[27:56] Group.

[27:57] Trabajo en el ?rea del equipo

[27:58] por m?s de tres a?os.

[28:01] Una vez m?s, vinimos para dar a

[28:04] conocer la verdad.

[28:07] No necesito nada escrito porque

[28:10] considero que cuando t? no

[28:11] mientes,

[28:13] no necesitas recordar nada.

[28:15] Nosotros nos sentimos bien y a

[28:17] la misma vez tristes por saber

[28:18] que solo tenemos seis meses de

[28:21] prueba.

[28:24] En los otros a?os anteriores,

[28:25] la empresa no ha tenido estos

[28:26] incidentes.

[28:27] Algo extra?o que ahora est?

[28:28] sucediendo, cuando siempre ha

[28:31] sido una buena empresa.

[28:33] Y mientras te hace ver a

[28:35] compa?eros que hablan mal y le

[28:37] muerden la mano a quien le da

[28:38] de comer.

[28:39] Ok, creo en Dios y creo que

[28:41] ustedes van a tomar una buena

[28:42] decisi?n sobre la empresa.

[28:44] Gracias.

[28:47] Next.

[28:48] Estela Ruiz, please go

[28:51] to the lectern, speak directly

[28:53] into the mic, state your name,

[28:54] and provide your comments.

[28:57] Estela Ruiz.

[29:02] Next speaker, Alvaro Suarez,

[29:06] please go to the lectern.

[29:12] Muy buenos d?as a cada uno de

[29:14] las personas que se encuentran

[29:15] ac?, hoy d?a, ac?.

[29:16] Mi nombre es ?lvaro Su?rez,

[29:18] trabajo para Cold Food.

[29:20] El motivo hoy d?a de estar ac?

[29:21] es porque realmente me siento

[29:24] bastante preocupado, porque,

[29:28] o pienso que bastante desleal,

[29:30] verdad, lo se le ha hecho en la

[29:32] compa?a con eso de que quieren

[29:35] quitarles el permiso para poder

[29:36] entrar al aeropuerto.

[29:38] Y siento que detr?s de los m?s

[29:40] de 600 empleados que nos

[29:42] podr?amos quedar sin trabajo,

[29:44] hay 600 familias que tambi?n

[29:46] pod?an padecer de hambre y de

[29:47] muchas cosas. Porque entendamos

[29:49] que detr?s de cada uno de

[29:50] nosotros est? el sustento de

[29:51] nuestras familias. Gracias

[29:55] Thank you.

[29:56] Esperanza Maciel.

[30:04] Buenos d?as.

[30:05] Mi nombre es Esperanza

[30:06] Maciel.

[30:07] Yo trabajo para la compa?a

[30:08] Flying Food.

[30:10] M?s de 10 a?os.

[30:11] Excuse me,

[30:12] can you please talk closely

[30:13] to the mic?

[30:15] M?s de 10 a?os tengo trabajando

[30:16] para la empresa.

[30:17] Me siento muy contenta,

[30:18] muy orgullosa de trabajar ah?.

[30:20] En mi vida, desde que llegu? a

[30:22] este pa?s, he prosperado.

[30:25] No tengo ninguna queja.

[30:27] No siento que haya alguna

[30:28] amenaza de trabajo.

[30:31] Se ha hecho lo que todas las

[30:33] empresas han hecho.

[30:34] Vienen muchos compa?eros como

[30:36] yo a decir lo que les puede

[30:39] afectar si este este trabajo se

[30:42] cierra. Nosotros hemos usado

[30:44] estas camisetas y nos hemos

[30:46] unido porque estamos en mismo

[30:49] acuerdo en que necesitamos este

[30:50] trabajo.

[30:51] Que mucha gente lo necesita.

[30:52] Hay gente de 10, de 20, de 22

[30:55] a?os trabajando para esta

[30:56] empresa.

[30:57] No hay nada malo,

[30:58] nada que no se pueda arreglar.

[31:01] Yo trabajo todos los d?as en el

[31:04] piso.

[31:06] Gracias.

[31:07] Thank you very much.

[31:10] Estela Ruiz.

[31:15] That's it.

[31:21] Oh.

[31:22] Madam Chair, those are all the

[31:23] speakers for public comments.

[31:24] Thank you.

[31:25] Thank you.

[31:26] Are there any neighborhood

[31:27] council speakers today?

[31:28] There are none.

[31:30] Moving on to the approval

[31:31] of minutes,

[31:32] could I please have a motion

[31:33] to approve the minutes

[31:34] for the June 18, 2026 special

[31:35] meeting?

[31:36] So moved.

[31:37] Second.

[31:38] Thank you, Commissioners

[31:39] Roxborough and Commissioner

[31:40] La Bau.

[31:41] All those in favor say aye.

[31:43] Aye.

[31:45] Any opposed say no.

[31:48] And any abstentions?

[31:50] Yes.

[31:54] Commissioner Daniel stepped

[31:55] out so he's going to be absent

[31:57] on this item.

[31:59] Very good.

[32:01] Moving on

[32:03] to the consent items.

[32:04] Commissioners, item 5 regarding

[32:05] the Second Amendment to the

[32:06] Concession Agreement with first

[32:08] class vending will be pulled

[32:09] off today's agenda and item 11

[32:11] regarding the FAA grant will be

[32:12] pulled from the consent list

[32:14] to allow staff

[32:15] to provide a presentation

[32:16] on that item.

[32:18] In addition to those,

[32:19] does any Commissioner want

[32:20] to pull an item

[32:21] for discussion?

[32:28] As a reminder,

[32:29] if there are speakers

[32:30] on any consent item,

[32:31] that item will be pulled from

[32:32] the consent list so we can hear

[32:33] from the speakers.

[32:34] Could the Board Secretary

[32:35] please advise if there are

[32:37] speakers on any of the consent

[32:38] items?

[32:39] There are none.

[32:41] Very good.

[32:45] With the aforementioned items

[32:46] pulled...

[32:47] We have left items number 1,

[32:50] 2, 3, 6, 7, 9, and 10.

[32:57] Right.

[32:58] 1, 2, 3, 4.

[33:03] 1, 2, 3, 4, 6, 7, 8, 9, and

[33:08] 10.

[33:09] And 11.

[33:11] 11 was pulled.

[33:14] It's pulled for...

[33:16] ...presentation.

[33:21] Could I have a motion to approve

[33:22] those consent items.

[33:25] Second.

[33:26] Thank you commissioners

[33:27] Roxborough and La Bau. All those

[33:29] in favor say aye.

[33:30] Aye.

[33:32] All those

[33:33] opposed no. Those consent items

[33:34] are approved. Commissioners let

[33:39] us again hold our questions

[33:41] until after the staff reports

[33:43] for the next section. We are now

[33:46] on item number 12.

[33:51] Mr. J?

[33:52] No?

[33:53] 11.

[33:54] 11, excuse me.

[33:55] Lead in.

[33:56] Number 11, could I please have

[33:57] Mr.

[33:58] Doug Webster?

[33:59] Thank you.

[34:03] Very good.

[34:04] Good morning, Commissioners.

[34:05] Doug Webster.

[34:06] I'm the Chief Operations and

[34:07] Maintenance Officer.

[34:08] This morning, for item number 11

[34:10] it's being presented to

[34:11] accept a grant offer from

[34:13] the FAA to

[34:14] support and enhance our vehicle

[34:15] movement area transponder

[34:17] network at Los Angeles

[34:18] International Airport in

[34:19] VNYs.

[34:21] We desire to provide you

[34:22] with some context as

[34:23] to what the grant will achieve

[34:25] to enhance safety

[34:26] at our airports.

[34:28] I have asked Neil Weingarten,

[34:29] our director

[34:30] of airport operations,

[34:31] to walk you

[34:32] through a quick overview of

[34:33] what this grant will achieve.

[34:40] Good morning, thank you.

[34:43] So a quick overview

[34:44] of what the VMATs do.

[34:46] These are Vehicle Movement

[34:47] Area Transponders.

[34:49] They utilize the system called

[34:50] ADS-B, which is Automatic

[34:53] Dependent Surveillance

[34:54] Broadcast, which is a really

[34:55] fancy term,

[34:57] but if you've ever used

[34:59] FlightAware or FlightRadar24,

[35:01] this data actually comes

[35:03] from the same place.

[35:04] The difference is we're

[35:05] installing it in vehicles

[35:06] on the airfield to give us

[35:07] situational awareness and

[35:09] to aid in the insurance

[35:11] of no vehicle collisions

[35:13] on the airfield.

[35:15] They provide a highly precise

[35:17] real-time location information

[35:19] and situational awareness.

[35:21] They're viewable in the tower

[35:23] through ASDX is what we call it,

[35:25] but it stands for Airport

[35:27] Surveillance Detection

[35:28] Equipment and Model X.

[35:30] It basically merges data

[35:32] from multiple sources.

[35:34] It takes the ADS-B data,

[35:36] it takes ground radar,

[35:38] it takes satellite information,

[35:42] and puts it all together so the

[35:43] tower can actually see all the

[35:44] vehicles on the airfield along

[35:46] with the aircraft.

[35:47] The ARC also uses this

[35:48] with a subscription called

[35:49] Aerobon.

[35:55] So the VMATs at LAX are

[35:57] different.

[35:58] We've got two different types.

[35:59] We have an older version and a

[36:00] newer version.

[36:01] The older version is quite

[36:02] interesting.

[36:04] At the time that airlines and

[36:05] airports started using VMAT,

[36:07] there was no actual device

[36:09] to put on vehicles.

[36:11] They were all aircraft devices.

[36:13] So what the FAA allowed

[36:14] for was a modification of a

[36:17] general aviation transponder.

[36:19] It's the same device you would

[36:20] see in a Cessna 172, just

[36:22] modified for ground use.

[36:24] Currently there's been an

[36:25] upgrade to the system.

[36:27] We now have the VTU20,

[36:29] which if you see

[36:30] on the slide there,

[36:31] it looks a lot like a Sirius XM

[36:33] antenna.

[36:35] A lot different than the box

[36:36] you see on the older model.

[36:38] Currently out of the 104 we

[36:40] have in LAX, currently 80 units

[36:42] are the older type and 24 are

[36:45] the newer type.

[36:50] This is a breakdown

[36:51] of the vehicles in LAX that

[36:53] actually have VMATs installed.

[36:55] 41 for operations, 31

[36:57] for bus ops, 21

[36:59] for maintenance, and 11

[37:01] for our vehicles.

[37:04] Currently, 76%

[37:05] of the coverage is actually

[37:07] on operations and buses.

[37:12] In VNYs, the same grant

[37:13] that we're speaking of today,

[37:15] we have the opportunity

[37:16] to install VMATs

[37:18] on our equipment

[37:19] for the first time.

[37:20] It's very rare that a general

[37:21] aviation airport will have VMAT

[37:23] capability.

[37:24] The FAA has actually installed

[37:26] Aerobon throughout the airport,

[37:28] which is something we use

[37:29] in the ARC, to allow

[37:31] for this type of device to be

[37:33] installed and have situational

[37:34] awareness in the tower.

[37:36] The current plan in front

[37:37] of you is for eight vehicles

[37:40] for airport ops, 17

[37:41] for maintenance, 3 for

[37:43] admin and community relations,

[37:45] 9 for LAFD, and 12

[37:47] for airport police.

[37:55] So, this item, as you can see

[37:57] from an AIP grant funding, it

[37:59] will provide 75% reimbursement

[38:01] at LAX.

[38:02] It will provide 95%

[38:03] reimbursement for VNY, up

[38:05] to $500,000 per airport.

[38:07] So, it's a substantial grant

[38:08] from that perspective.

[38:09] LAWA was applied for this

[38:11] funding and expect that we will

[38:13] receive approval

[38:14] of this request.

[38:16] We're currently negotiating an

[38:18] agreement relative

[38:19] to the equipment provider

[38:21] to actually do the procurement,

[38:22] and that will be forthcoming

[38:23] in the future.

[38:24] So at this time we would

[38:25] request adoption

[38:26] of the staff report and

[38:27] approval of the item and we

[38:29] would be happy to answer any

[38:30] additional questions you might

[38:31] have about the system.

[38:33] Thank you both.

[38:34] Are there any speakers

[38:35] on this item?

[38:36] Hang on.

[38:39] Any questions or comments

[38:40] from the board?

[38:42] Just one question.

[38:43] Assuming everything gets

[38:44] approved, how long before the

[38:46] equipment is received and

[38:49] packed?

[38:50] As an example, at LAX we

[38:51] already have the equipment

[38:52] in place, we're just doing

[38:53] upgrades,

[38:54] so that's a good thing.

[38:55] We're probably looking

[38:56] somewhere in the range of

[38:57] about six months

[38:58] until we'll be able

[38:59] to do the upgrade

[39:00] from that perspective,

[39:01] but we're trying to move that

[39:02] along as quickly as possible.

[39:03] But we are excited

[39:04] to get this grant opportunity.

[39:05] That's terrific.

[39:06] Thank you.

[39:07] But it's not

[39:08] on every single vehicle,

[39:09] obviously.

[39:10] No.

[39:11] And there's no move

[39:12] to do that.

[39:13] No.

[39:14] To get the situational

[39:15] awareness on a couple

[39:16] of vehicles

[39:17] from each department,

[39:18] basically.

[39:19] So, the focus on this is that we

[39:20] want to get the vehicles that

[39:21] physically go into what's

[39:22] called the movement area.

[39:23] So that is the controlled

[39:24] portion of the airport.

[39:25] And the concern would be if you

[39:26] put them on all the vehicles,

[39:27] you would have clutter all

[39:28] over the screen.

[39:29] So you wouldn't be able to

[39:30] discern what are the important

[39:31] vehicles and the ones that are

[39:32] just routinely operating

[39:33] in the non-movement area of the

[39:34] airport.

[39:35] How does it work

[39:36] with the vehicles?

[39:38] If there's a vehicle that,

[39:39] two vehicles that are close

[39:40] to each other,

[39:41] are transmissions able

[39:42] to do so they know they're

[39:43] close to each other?

[39:44] So potentially

[39:45] in the future it'll be able

[39:46] to do that, because there's

[39:47] out and in relative

[39:49] to ADS-B transmissions.

[39:52] This right now,

[39:53] primarily what it's going

[39:54] to be able to do is make it so

[39:55] the tower is able to see

[39:56] exactly where every vehicle

[39:58] that is critical,

[39:59] that would be going out

[40:00] on the movement area,

[40:01] is located.

[40:03] And so ultimately, you know,

[40:05] if you have any type

[40:06] of incursion or something

[40:07] along those lines, it gives the

[40:08] tower specifically more greater

[40:10] awareness.

[40:11] In the future,

[40:12] there's the potential that we

[40:13] may be able

[40:14] to go ahead and do the

[40:15] out and in,

[40:16] which then would begin to let

[40:17] vehicles and airplanes see each

[40:18] other.

[40:19] But that is down the road

[40:20] still.

[40:23] Commissioners, I would say this

[40:24] is.

[40:25] If you recall the tragedy in

[40:26] New York recently,

[40:27] they didn't have this system

[40:29] on some of that equipment,

[40:30] and it didn't allow the tower

[40:31] to see exactly what was going

[40:32] on.

[40:33] There was multiple, you know,

[40:34] probably factors in that

[40:35] accident,

[40:36] but this was one of them. And

[40:38] we're well ahead of most

[40:39] of our airport peers on this.

[40:40] We are trying to stay further

[40:42] and this is a very good move

[40:44] for the airport.

[40:45] And again, as Doug said, no

[40:47] other general aviation airport

[40:48] in the country, really, will

[40:50] have the same capability that

[40:51] we will have at VNY. We

[40:52] are also proud that we will

[40:53] make this investment at VNY,

[40:56] not just at LAX.

[40:59] Any other questions or comments

[41:00] from the Commission?

[41:03] If there are none,

[41:04] could I have a motion

[41:05] to approve item 11?

[41:06] So moved.

[41:07] Second.

[41:08] Thank you, Commissioners

[41:09] Velasco and Roxborough.

[41:11] All those in favor, say aye.

[41:12] Aye.

[41:13] Any opposed?

[41:15] The ayes have it.

[41:20] We are now on item number 12,

[41:23] Mr.

[41:24] Jacob Adams.

[41:25] Good morning, Vice President

[41:26] Aramayo.

[41:27] Good morning

[41:28] Commissioners and welcome

[41:30] Commissioner Daniels.

[41:31] Glad to see you here.

[41:34] Yeah, so I wanted to take just

[41:35] a quick second and introduce

[41:37] you guys to one of our

[41:39] superstar LAWA engineers.

[41:42] Laurel, come on up.

[41:44] This is Laurel Soriano, and he

[41:46] is actually the project manager

[41:48] for the project that's being

[41:50] considered before you today.

[41:51] So, I'm going to turn it over

[41:52] to him, and he's going to go

[41:53] through a presentation

[41:54] with you guys,

[41:55] and then he's going to answer

[41:56] any questions you might have.

[42:05] Alright.

[42:07] Good morning, Vice President

[42:08] Aramayo, Commissioners.

[42:11] As Jake mentioned, my name is

[42:12] Laurel Suriano.

[42:14] I'm the Project Manager

[42:15] for the Airport Development

[42:16] Program.

[42:19] And today we're recommending

[42:21] the award

[42:22] for a three-year contract for

[42:23] Sully Miller Contracting

[42:24] Company.

[42:25] And we're approving, waiting for

[42:26] the approving of the

[42:27] appropriation

[42:28] of the $108,383,603 for the

[42:33] Taxiway Alpha West and

[42:34] Foxtrot

[42:36] Reconstruction Project.

[42:39] Just

[42:40] to give you guys an overview of

[42:41] where the project is located,

[42:43] as you can see,

[42:45] basically that this is located

[42:47] on the south complex of the

[42:50] airfield where we will be

[42:52] reconstructing the Taxiway

[42:53] Alpha on the west side

[42:55] from Taxiway Quebec

[42:57] to Taxiway Alpha 7 and

[42:58] on the east side, Taxiway

[43:01] Foxtrot between runway 7L25

[43:03] right and 7R25 left,

[43:05] including airport improvements

[43:07] on the intersection of Alpha

[43:09] and Foxtrot.

[43:12] Now these taxiways are critical

[43:14] to the cargo area operations.

[43:17] And one of the challenges that

[43:18] we've had is maintaining the

[43:20] existence

[43:21] of the existing pavement.

[43:23] So, there's a basic pavement

[43:26] inspection report that we

[43:27] pulled.

[43:28] And as you can see, majority

[43:29] of taxiway Alpha, starting

[43:32] from Quebec, you have colors

[43:33] pink and red

[43:34] that indicates that the

[43:35] pavement is very poor

[43:37] to serious condition,

[43:38] which is continuing

[43:39] to deteriorate.

[43:40] So, we've taken a few field

[43:42] photos, and to your right, you

[43:43] can see that we have two and a

[43:45] half inch wide cracks.

[43:47] You can look closely, there's

[43:48] like a walkie-talkie that

[43:49] actually fits there.

[43:50] And in the middle, we have

[43:51] Taxiway Mainline, which has

[43:54] longitudinal cracking, which

[43:56] indicates that there's

[43:57] structural failure

[43:58] in the pavement.

[43:59] And on the right,

[44:00] you have extensive rutting,

[44:01] which is caused by large

[44:02] aircrafts either waiting or

[44:03] entering,

[44:04] exiting the cargo area.

[44:06] So, something to keep you guys

[44:08] in perspective is that this

[44:09] pavement has not been

[44:10] reconstructed from within 40

[44:11] years.

[44:12] So, there has been, you know,

[44:13] concerns about FOD,

[44:15] unsafe air traffic conditions,

[44:17] and there's a risk of

[44:19] incursions that occur that

[44:21] maintenance has

[44:22] to do ongoing performance.

[44:25] So, in regards

[44:26] to the project scope, we're

[44:28] reconstructing the project and

[44:30] it requires extended closures

[44:31] for the existing taxiways.

[44:34] during the construction and it

[44:35] has multiple phases.

[44:37] We have nighttime phases and

[44:38] accelerated work areas

[44:40] to mitigate any operations.

[44:42] The new construction will

[44:44] replace the existing asphalt

[44:46] with durable concrete and we

[44:48] will include reconstruction

[44:50] of the taxiways and shoulders,

[44:52] improve the pavement markings

[44:53] and upgrade the airfield

[44:56] lighting and signages and

[44:57] enhance the storm grade

[44:59] systems.

[45:02] So we received two proposals

[45:04] on March 27th, and we did the

[45:05] technical evaluation and

[45:07] interviews were completed in

[45:09] April 13th. The bid

[45:10] participation was competitive,

[45:13] and it was determined that

[45:14] Sully Miller Contracting

[45:15] Company was the overall best

[45:17] value to LAWA.

[45:19] With the bids,

[45:20] we were also qualified

[45:22] for reimbursement

[45:23] for the grants for FAA.

[45:27] Now, a little bit

[45:28] on inclusivity.

[45:29] Now, because this project is...

[45:32] federally funded, this contract

[45:33] does not have a DB requirement.

[45:37] However, Sully Miller

[45:39] understands what it means

[45:41] to LAWA and are willing to go

[45:42] above and

[45:43] beyond the requirements.

[45:45] So, under the Workforce

[45:46] Development Plan, the

[45:47] contractor is committed

[45:48] to these numbers.

[45:50] So, you're going to engage into

[45:51] outsourcing their community

[45:53] services, engagement

[45:55] to the elementary schools,

[45:57] do summer internships, K-12

[45:59] STEM outreach programs,

[46:02] and continuing their mentor

[46:03] protege programs.

[46:07] In terms of their schedule,

[46:09] so, the contractor is

[46:10] to mobilize in November

[46:12] of this year and then the start

[46:14] of field construction will

[46:16] begin in March of 2027

[46:17] after the Super Bowl.

[46:20] So we're going

[46:21] to be completing the Taxiway

[46:22] Alpha construction work

[46:23] in early November and then we

[46:25] get a little bit of a break

[46:26] for a couple of months. So, that

[46:27] way we can avoid any

[46:29] of the operational impacts

[46:30] during the holidays.

[46:32] And then we resume construction

[46:33] in January of 2028.

[46:35] And that's a critical phase

[46:36] for Tax-Free Foxtrot.

[46:38] And then we have the remaining

[46:39] construction in April.

[46:41] So everything's going

[46:42] to be done and completed prior

[46:43] to the summer of the Olympics

[46:44] in 2028.

[46:47] And here I just kind

[46:48] of reiterate about our request

[46:49] for approval

[46:50] on the appropriation for $108

[46:52] million.

[46:56] If you guys have any questions.

[46:58] Thank you so much for the

[46:59] presentation.

[47:01] I just want to make sure this

[47:02] construction is covered under

[47:03] the project labor agreement.

[47:06] Correct.

[47:08] Yes, it is.

[47:09] Okay.

[47:12] I'll just make a note.

[47:13] I appreciate that even though

[47:14] this is, you know,

[47:16] they're not beholden to the

[47:18] workforce development quotas,

[47:19] that they are adhering

[47:20] to that.

[47:21] So just a public appreciation

[47:23] of that.

[47:24] In the past, has this,

[47:25] has something

[47:26] like this been consistent

[47:28] with only getting two bidders?

[47:32] Oh in the past we usually have

[47:34] between two to five bidders but

[47:37] because there were, you know, so

[47:38] many different work going on

[47:40] these were our two bidders that

[47:42] at the time bid

[47:44] for this project.

[47:49] I, umm,

[47:50] thank you for the presentation

[47:52] obviously we need that the fact

[47:53] that it's been around for 40

[47:54] years, speaks

[47:55] for itself.

[47:56] I have a math questions.

[47:57] So, the motion would be

[48:00] to approve an amount

[48:02] of money not

[48:03] to exceed basically $82

[48:04] million.

[48:06] Then it says the appropriation

[48:08] of $108 million

[48:09] for the project.

[48:11] Can you explain the detail?

[48:13] So, that would include, so the

[48:15] $80 million that's on there is

[48:18] regarding the main

[48:19] construction.

[48:20] So, that's the hard cost.

[48:21] And then on top of that, we do

[48:23] have some construction services

[48:25] and some staffing support.

[48:26] And then some contingency that

[48:27] is included in that amount.

[48:30] Okay.

[48:31] But we're only approving no

[48:35] more than 80 round numbers, 82

[48:36] million?

[48:38] 82 million for the construction

[48:39] contract.

[48:41] All right.

[48:44] I was confused by that too.

[48:45] Thanks.

[48:46] I thought I was reading it

[48:47] differently.

[48:48] I don't understand.

[48:49] Oh, go ahead, Jake.

[48:50] You have the same question.

[48:51] Yeah.

[48:52] Go ahead.

[48:53] Because we're approving the

[48:54] contract.

[48:55] We're only requesting

[48:56] appropriation

[48:57] of the contract authority.

[48:58] The project has its own total

[48:59] cost budget.

[49:00] That's the $108 million.

[49:02] So today we're requesting

[49:03] approval of the contract with

[49:05] Sully Miller for $82 million.

[49:08] Hopefully that...

[49:09] That does.

[49:10] Thank you. Thank you.

[49:16] You're welcome.

[49:17] Any other questions?

[49:20] Thank you very much.

[49:22] There are no further questions

[49:23] or comments

[49:24] could I please have a motion to

[49:26] item number 12?

[49:27] I'll make a motion.

[49:29] Second.

[49:30] Thank you, Commissioners Narro

[49:31] and Roxborough.

[49:32] All those in favor, say aye.

[49:33] Aye.

[49:35] Any opposed?

[49:36] Ayes guys have it.

[49:37] Item number 12 is approved.

[49:41] Moving on to item number 13,

[49:45] Aramayo.

[49:46] Thank you.

[49:47] Good morning, Commissioners,

[49:48] and welcome, Commissioner

[49:49] Daniels.

[49:51] Looking forward to you being

[49:52] on the commission.

[49:54] So this board action is a

[49:55] request

[49:56] for capital appropriation.

[49:58] This is not a contract item.

[50:01] To upgrade our mission-critical

[50:03] public safety infrastructure.

[50:06] The systems that we are

[50:07] upgrading are our access

[50:09] control system, our

[50:11] computer-aided police dispatch

[50:14] system, and our video

[50:15] management system.

[50:16] And all of these systems are

[50:18] essential

[50:19] to protecting our passengers,

[50:20] employees, our critical assets,

[50:23] and airport operations.

[50:25] This investment is going

[50:27] to improve public safety.

[50:29] It will also give us enhanced

[50:33] analytics capabilities

[50:34] for police to have automated

[50:37] threat detection as well as

[50:39] verification

[50:41] of alarms so they don't have

[50:43] to report and respond to all of

[50:45] those alarms and it will

[50:46] improve their situational

[50:48] awareness.

[50:50] This investment will also

[50:51] reduce our cyber security risk

[50:54] as much of the hardware and

[50:56] software is being replaced with

[50:58] the latest and greatest

[50:59] technology.

[51:02] This project is approved

[51:03] within the 2024 capital

[51:05] improvement plan.

[51:07] We are using our IT master

[51:08] service agreements

[51:10] to implement the work.

[51:11] The timeline

[51:13] for the project is 18 months so

[51:15] it will be completed and

[51:17] in operation prior to the 2028

[51:20] Olympics and Paralympic Games

[51:22] and 35% of the total dollar

[51:26] value will be going

[51:27] to SBE firms

[51:28] on those master service

[51:30] agreement bench contracts.

[51:33] So, the request is to approve

[51:35] the capital appropriation of

[51:38] $17,848,000

[51:41] for this dispatch, access

[51:44] control, and video management

[51:46] system modernization project.

[51:49] And I can answer any questions

[51:50] if there are any.

[51:53] Is it replacing all the ACAMs

[51:55] on all the doors?

[51:57] Some of those are faulty and

[51:58] they go off.

[52:00] So, no, this is actually

[52:02] replacing our head-in system.

[52:04] So, the vendor has advanced the

[52:08] technology a couple versions

[52:10] ahead of the version of the

[52:12] platform that we're running

[52:13] today.

[52:14] So, we are upgrading the system

[52:15] that actually controls the

[52:18] controllers that then controls

[52:20] all of the hardware that's

[52:21] at the doors.

[52:22] So, it's the brains

[52:23] of the system itself.

[52:26] Yes.

[52:30] Questions from or comments

[52:31] from the board?

[52:33] Could I have a motion

[52:35] to approve item number 13.

[52:37] So moved.

[52:38] Second.

[52:39] Thank you commissioners

[52:40] Velasco and La Bau.

[52:41] All those in favor say aye.

[52:42] Aye.

[52:43] Any opposed?

[52:44] The ayes have it.

[52:45] Item number 13 is approved.

[52:47] Thank you.

[52:48] Thank you commissioners.

[52:51] Moving to item number 14. Mr.

[52:54] Doug Webster again.

[53:06] Good morning, Vice President

[53:07] Aramayo, Commissioners, CEO.

[53:11] My name is Fu Tong with the

[53:13] Facilities Management

[53:14] Division.

[53:15] I'll be speaking on this item

[53:16] on behalf of Mr.

[53:17] Webster.

[53:18] Before you today is a request

[53:21] to approve a five-year sole

[53:23] source contract with Solar

[53:24] Turbines Incorporated

[53:27] in an amount not to exceed $16

[53:28] million for the maintenance,

[53:30] repair, technical support,

[53:32] and overhaul services

[53:33] for the two Mercury 50

[53:35] Gas Turbines located

[53:37] at the LX Central Utility

[53:38] Plant.

[53:40] Approximately $5 million of

[53:41] this contract authority will be

[53:43] allocated for the Beneficial

[53:44] Use Service Agreement, which

[53:46] includes a dedicated fleet

[53:47] manager, on-site maintenance,

[53:50] remote troubleshooting and

[53:51] support, component replacement,

[53:53] and schedule inspections and

[53:54] reports.

[53:56] The remaining $11 million will

[53:57] be used for anticipated major

[53:59] maintenance activities over the

[54:00] next five years including

[54:03] turbine overhauls recuperator

[54:05] and replacements and major

[54:06] repairs.

[54:08] These two turbines are critical

[54:10] components of LAX of LAWA's

[54:13] energy infrastructure.

[54:15] Installed in 2014 as part

[54:17] of the cup replacement project,

[54:19] each turbine generates

[54:20] approximately 4.2 megawatts

[54:22] of electricity to support the

[54:24] thermal energy systems that

[54:25] support cooling and heating

[54:27] throughout the central terminal

[54:28] area, admin east and the theme

[54:31] building.

[54:32] In addition to supporting cut

[54:33] thermal systems, the turbines

[54:35] also provide electrical power

[54:36] to the CTA parking structures

[54:39] 2-6, airport traffic signal

[54:41] systems, and lower-level

[54:45] roadway lighting.

[54:48] As a key component of LAWAS'

[54:49] sustainability and resiliency

[54:50] strategy, this cogeneration

[54:53] system improves overall energy

[54:55] efficiency by simultaneously

[54:57] producing electricity, heating,

[54:59] and cooling

[55:00] from a single fuel source.

[55:02] By capturing and reusing

[55:05] thermal energy that would

[55:07] otherwise be wasted, the cold

[55:08] generation system reduces

[55:10] operating costs,

[55:11] lower greenhouse gas emissions,

[55:13] and provides greater energy

[55:15] resiliency compared to

[55:16] conventional energy systems.

[55:19] The result is a more efficient,

[55:20] reliable, and sustainable

[55:22] energy infrastructure that

[55:23] supports airports' continuous

[55:25] 24-7 operations.

[55:28] Because Solar Turbines is the

[55:29] original equipment manufacturer

[55:32] and has not authorized or

[55:33] licensed any third party to

[55:35] perform maintenance repairs or

[55:37] overhauls on these turbines, a

[55:39] sole source contract is

[55:40] necessary

[55:41] to ensure the continuous safe,

[55:43] reliable,

[55:44] and efficient operation of this

[55:45] critical infrastructure.

[55:48] Thank you and I'm available

[55:49] for any questions you may have.

[55:57] I have...just a question of

[55:58] clarification.

[56:00] I read the report.

[56:01] It was, it was interesting that

[56:02] it sounds

[56:03] like no one else can do this.

[56:06] They're the manufacturer, they

[56:08] haven't authorized anyone

[56:12] else. So, it sounds like into

[56:14] perpetuity or certainly as long

[56:15] as the cut equipment lasts.

[56:18] This will be our vendor. Am I

[56:20] reading that correctly?

[56:22] That's correct.

[56:24] You anticipate any new players

[56:26] in that industry or this is it?

[56:30] We are, we'll be looking at

[56:33] other players that can provide

[56:35] similar make and model that can

[56:37] provide similar productivity

[56:40] co-generation wise and we will

[56:42] be seeing what's available

[56:44] on the market right now.

[56:46] From previous research there's

[56:47] a lot of folks in this room

[56:48] that have done a lot

[56:49] of studies

[56:50] on this previously.

[56:52] There are vendors

[56:53] out there are capable

[56:54] of doing it.

[56:55] However, there's a lot

[56:56] of complexity when it comes

[56:58] to swapping out the cogens.

[57:01] So, obviously there's an

[57:03] investment that needs

[57:05] to be done and looked at.

[57:06] And we have to look

[57:07] at the overall cost analysis

[57:09] to determine what's feasible

[57:11] to be done.

[57:12] And then whoever comes in,

[57:15] you're in a way stuck with that

[57:16] vendor or somebody equal.

[57:19] Sounds like, we've got a

[57:20] five-year time frame...

[57:25] ...next time around.

[57:28] Yes, and that is where we're

[57:30] having the discussion as we

[57:31] speak.

[57:33] We're going to be regrouping

[57:34] with our Air Force

[57:35] Development Group, our

[57:36] environmental group,

[57:37] and see what the plan

[57:38] for will be.

[57:43] Any other comments or questions

[57:44] from the board?

[57:47] Could I please have a motion

[57:48] to approve item number 14?

[57:52] So moved.

[57:54] The second?

[57:55] Second.

[57:56] Thank you, Commissioners La

[57:57] Bau and Narro.

[57:58] All those in favor,

[57:59] please say aye.

[58:00] Aye.

[58:01] Any opposed?

[58:03] The ayes have it.

[58:04] Item number 14 is approved.

[58:05] Thank you.

[58:06] Thank you.

[58:08] And I'm also number 15, so I'm

[58:10] sticking around.

[58:11] Welcome back.

[58:12] Short commute.

[58:14] All right.

[58:15] Item 15 is a request

[58:17] to approve the second amendment

[58:18] to contract DA-5660 with

[58:21] Uniserve Facility Services

[58:23] for RAM scrubbing, cleaning,

[58:24] and sweeping services

[58:25] at LAX.

[58:26] This amendment will extend the

[58:28] contract term by one year to

[58:30] October 22, 2027, and add a

[58:33] one-year renewal option and

[58:34] increase the contract authority

[58:35] by $3.2 million for a revised

[58:38] not-to-exceed amount of $7

[58:40] million.

[58:41] These services are essential to

[58:42] maintaining safe and reliable

[58:45] airfield and RAM operations.

[58:47] RAM scrubbing and sweeping are

[58:49] performed

[58:50] on a regular scheduled basis

[58:52] to remove grease, oil, dirt,

[58:54] and debris, maintain adequate

[58:56] pavement surface traction for

[58:57] aircraft towing and pushback

[58:59] operations,

[59:00] reduce slip and fall hazards

[59:02] for ground operations

[59:03] personnel,

[59:04] and support compliance with FAA

[59:05] regulations and requirements.

[59:08] The current contract was

[59:09] awarded in September 2023

[59:12] with a not to excide amount of

[59:15] $3 million and is scheduled to

[59:16] expire in October 22nd, 2026.

[59:19] In April 2026, the board had

[59:22] previously approved a First

[59:24] Amendment increasing the

[59:26] contract authority by

[59:27] $800,000, bringing the total

[59:28] contract to $3.8 million.

[59:31] However, due to ongoing

[59:33] operational service

[59:35] requirements, increased labor

[59:36] costs,

[59:37] including adjustments

[59:38] associated with the city's

[59:39] living wage ordinance,

[59:41] and additional time required to

[59:42] complete a competitive

[59:43] solicitation

[59:45] for accessor contract, the

[59:47] remaining contract authority is

[59:48] no longer sufficient

[59:50] to support services

[59:51] through the contract term.

[59:52] The contract includes

[59:54] participation goals of 15% for

[59:56] small business enterprise and

[59:58] 2% for disabled veteran

[1:00:00] business enterprise.

[1:00:02] Uniserve has met these goals

[1:00:04] achieving 18.1...I'm sorry,

[1:00:06] 15.81% participation

[1:00:09] in subcontracting expenditures

[1:00:11] through Facility Force

[1:00:12] Corporation, which is certified

[1:00:14] as both an SB and a DVBE.

[1:00:20] While the board report

[1:00:21] currently reflects a

[1:00:22] participation rate of 12.4%,

[1:00:25] the most current data available

[1:00:27] in the B2G Now system shows

[1:00:31] that there are 15.81%.

[1:00:34] This amendment will provide the

[1:00:35] necessary time and funding to

[1:00:37] maintain uninterrupted ramp

[1:00:40] scrubbing, cleaning, and

[1:00:41] sweeping surfaces while staff

[1:00:43] completes the competitive

[1:00:44] procurement process

[1:00:45] for a successor agreement.

[1:00:47] If a successor contract is

[1:00:49] awarded and executed sooner,

[1:00:51] LAWA retains the ability to

[1:00:52] terminate the current contract

[1:00:54] for convenience.

[1:00:56] Thank you, and I'm available

[1:00:57] for any questions regarding

[1:00:58] this item.

[1:01:03] Quick question.

[1:01:04] How many subcontractors are

[1:01:05] involved?

[1:01:07] One.

[1:01:08] Facilities force.

[1:01:09] When you bring

[1:01:10] in a subcontractor, is it the

[1:01:11] contractor's responsibility

[1:01:12] to inform them about the living

[1:01:15] wage ordinance and other

[1:01:16] policies?

[1:01:18] Is that our obligation?

[1:01:21] That I'm not clear.

[1:01:23] I can get back to you

[1:01:24] on that one.

[1:01:25] Ms.

[1:01:26] Hopenstam?

[1:01:29] Yes.

[1:01:30] It is a common...

[1:01:31] contract term

[1:01:32] to require the contractor to

[1:01:34] include as a mandatory

[1:01:36] provision

[1:01:37] in all subcontract?s information

[1:01:39] of such items and mandatory

[1:01:40] policies and ordinances as a

[1:01:42] living wage.

[1:01:46] Any other questions?

[1:01:49] Could I please have a motion to

[1:01:50] approve item number 15?

[1:01:55] I make a motion.

[1:01:56] Second.

[1:01:57] Thank you, Commissioners Narro

[1:01:58] and Roxborough.

[1:02:00] All those in favor,

[1:02:01] please say aye.

[1:02:02] Aye.

[1:02:03] Any opposed?

[1:02:04] Item number 15 is approved.

[1:02:07] Thank you.

[1:02:08] Thank you, commissioners.

[1:02:10] Moving on to item number 16,

[1:02:12] Ms.

[1:02:13] Chandler.

[1:02:15] Good morning, commissioners.

[1:02:17] Good morning, Vice President

[1:02:18] Aramayo and board and

[1:02:21] Commissioner Daniels, Welcome

[1:02:22] and thank you

[1:02:23] for being here and thank you

[1:02:24] for your service.

[1:02:26] So, I am here to request...

[1:02:29] that you adopt the staff report

[1:02:31] and approve the award, a

[1:02:33] three-year contract award for...

[1:02:36] with two additional one-year

[1:02:38] term options to Baker Tilly

[1:02:40] for our external audit services

[1:02:43] for LAWA and in the amount not

[1:02:46] to exceed 1.65 million.

[1:02:52] Questions?

[1:02:54] Oh, I'm sorry.

[1:02:55] It's not a presentation.

[1:02:56] It's an audit.

[1:02:59] She was so fascinated by the

[1:03:00] CSF.

[1:03:03] Maybe I should introduce

[1:03:04] myself, Antoinette Chandler,

[1:03:05] CFO.

[1:03:06] Audit is important to me.

[1:03:09] So all good.

[1:03:10] Just to give you guys,

[1:03:11] I won't belabor this, but we

[1:03:13] did run a competitive process.

[1:03:15] We went through a thorough

[1:03:17] evaluation and decided that

[1:03:20] Baker Tilly was the most

[1:03:22] qualified,

[1:03:23] the best positioned firm

[1:03:25] for us to continue

[1:03:26] to work with.

[1:03:27] And I'll just say exciting

[1:03:29] about Baker Tilly meeting these

[1:03:32] business enterprise goals.

[1:03:33] So, they have some actually

[1:03:36] subcontracted with as part

[1:03:38] of their RFP process with

[1:03:39] Simpson & Simpson, which is a

[1:03:40] minority-owned firm.

[1:03:42] So that's just fantastic,

[1:03:44] their commitment to align

[1:03:46] with our goals and objectives.

[1:03:49] You all know this is mandate

[1:03:51] by our indenture that we have

[1:03:53] to come forward with an

[1:03:55] external audit every year.

[1:03:56] I will say that it's just a

[1:03:58] reminder here that it's just

[1:03:59] good governance and good

[1:04:01] business practice,

[1:04:02] good corporate governance

[1:04:03] to have an audit every year.

[1:04:05] So with that, I am asking

[1:04:09] for your approval

[1:04:11] of this contract not

[1:04:12] to exceed $1.65 million

[1:04:15] over the three-year term

[1:04:16] with two one-year options.

[1:04:20] Any questions?

[1:04:21] Yes, I have a question.

[1:04:22] This is a new contract

[1:04:23] with this company, right? That

[1:04:25] we didn't contract

[1:04:26] with them before?

[1:04:27] Uh, we have

[1:04:28] contracted with them before.

[1:04:29] They actually are an incumbent,

[1:04:31] and they've been with us

[1:04:32] for eight years.

[1:04:33] Okay. Thank you.

[1:04:34] And on that question, I'm going

[1:04:36] to save a lot of time for

[1:04:37] Vice Chair Aramayo

[1:04:39] to ask questions on this.

[1:04:42] On a serious note,

[1:04:44] how many proposals were there

[1:04:46] in addition?

[1:04:47] Nine.

[1:04:48] Yes.

[1:04:49] So,

[1:04:50] there were, oops, I'll go back.

[1:04:51] I heard somebody say nine.

[1:04:52] Nine proposals.

[1:04:53] Okay. I missed that.

[1:04:54] Then I agree with you

[1:04:55] about the due diligence,

[1:04:56] and I appreciate you commenting

[1:04:57] on that. And they also have

[1:04:58] expertise for the bond issuance

[1:05:00] issue that is on the agenda

[1:05:01] for today as well.

[1:05:04] Correct.

[1:05:05] Okay.

[1:05:06] That's very important as well.

[1:05:07] So, thank you for that.

[1:05:08] Appreciate it.

[1:05:09] Thank you.

[1:05:10] Can you go

[1:05:11] to the next slide?

[1:05:14] Three-year base

[1:05:15] with two-year option.

[1:05:16] So, they'll be doing an audit

[1:05:18] for three fiscal years?

[1:05:20] Three fiscal years,

[1:05:21] starting this fiscal year for

[1:05:22] 27.

[1:05:23] Perfect.

[1:05:24] And I would add, didn't expect

[1:05:26] to spend this much time

[1:05:27] on the audit, but I'm happy

[1:05:29] to do that,

[1:05:30] that we will be bringing

[1:05:31] Baker Tilly forward

[1:05:32] for audit committee next month.

[1:05:35] So, you'll have an opportunity

[1:05:36] to engage and get some more

[1:05:39] clarity on the scope

[1:05:40] of our audit for 27.

[1:05:43] That was a side question later.

[1:05:44] Thank you.

[1:05:45] Okay.

[1:05:46] Thank you.

[1:05:47] The amount not to exceed $1.6

[1:05:48] million includes the two

[1:05:50] one-year options?

[1:05:52] It includes.

[1:05:53] That does include the two

[1:05:54] one-year options.

[1:05:55] Thank you.

[1:05:56] Any other questions or

[1:05:57] comments?

[1:05:58] I have a new commissioner

[1:05:59] question.

[1:06:00] Okay.

[1:06:02] LAX always had clean audits?

[1:06:07] Always is a long time.

[1:06:08] Yeah.

[1:06:10] In the last 10 years.

[1:06:12] Seriously, what's been LAX's

[1:06:14] history...audits?

[1:06:17] Well, I haven't been here for

[1:06:18] 10 years but I can tell you...

[1:06:20] I'm just curious.

[1:06:22] Yeah,

[1:06:23] but I can tell you the last 5

[1:06:24] years I know, clean audit, 10

[1:06:26] years, clean audit.

[1:06:31] Clean audit, but...

[1:06:32] sometimes means corrections

[1:06:36] encouraged by the auditor.

[1:06:37] So I've been here 20 years,

[1:06:39] and so during that,

[1:06:41] I don't know if it was the last

[1:06:42] 10 years, but there have been

[1:06:43] times when we've had audits and

[1:06:44] recommendations,

[1:06:45] and then we take on those

[1:06:46] recommendations that become

[1:06:48] part of the report.

[1:06:49] Yeah, so when the auditors come

[1:06:51] in, they give us a qualified

[1:06:53] opinion, okay?

[1:06:54] So that would be characterized

[1:06:56] as a clean audit.

[1:06:57] Now, with that, they do

[1:06:59] provide,

[1:07:00] as they're doing their audit,

[1:07:01] any management recommendations

[1:07:03] where there's improvement for

[1:07:05] internal controls and the like.

[1:07:07] They also take a look at,

[1:07:09] so we do a single audit,

[1:07:11] and we're required to do a

[1:07:12] single audit whenever you take

[1:07:14] on federal dollars.

[1:07:16] And so, they, you know,

[1:07:18] our process of going

[1:07:19] through all that,

[1:07:20] making sure that we're

[1:07:21] in compliance there,

[1:07:22] if they find any

[1:07:23] recommendations to help

[1:07:24] strengthen our compliance

[1:07:26] process, they'll make those

[1:07:27] recommendations.

[1:07:29] There's a few of us

[1:07:30] on the audit committee,

[1:07:31] so we have a meeting

[1:07:32] to have an exchange with the

[1:07:35] auditors and also ask them

[1:07:37] questions.

[1:07:39] That is correct,

[1:07:40] and that will be August 27th.

[1:07:42] We'll come before you.

[1:07:44] But any suggestions that the

[1:07:45] auditor may make when

[1:07:46] evaluating, I mean, that's

[1:07:47] normal, right?

[1:07:49] Correct.

[1:07:50] That's part of the normal audit

[1:07:51] process and not negating or

[1:07:54] making it non-clean.

[1:07:56] Yeah.

[1:07:57] And I just want to be clear,

[1:07:58] we can have a qualified opinion

[1:08:00] with recommendations.

[1:08:02] Right.

[1:08:03] Right.

[1:08:04] Very good.

[1:08:05] Any other questions or

[1:08:06] comments?

[1:08:07] Vice President Aramayo, if I

[1:08:08] may, I'm the one who decided

[1:08:10] to put this

[1:08:11] on the regular agenda.

[1:08:12] And the reason I did it is kind

[1:08:13] of what Commissioner

[1:08:14] Roxborough said, that this is,

[1:08:15] you know,

[1:08:16] we have multiple layers of

[1:08:17] governance and controls and

[1:08:18] experts that help us do our

[1:08:19] jobs.

[1:08:20] Baker Tilly is one of the firms

[1:08:22] that, you know, we rely

[1:08:23] on as staff

[1:08:24] to make sure that, you know,

[1:08:25] we're keeping our books

[1:08:26] properly in layman's terms and

[1:08:28] that you rely

[1:08:29] on as commissioners.

[1:08:30] So, we thought it was important

[1:08:31] to show you and have a little

[1:08:33] discussion about this.

[1:08:34] Not as long as we expected, but

[1:08:35] I think it was a healthy

[1:08:36] discussion because this is a

[1:08:37] really important part of the

[1:08:38] governance process that the

[1:08:40] public expects of us.

[1:08:41] Yep.

[1:08:43] Thank you.

[1:08:45] Thank you.

[1:08:46] Could I have a motion

[1:08:47] to approve item number 16?

[1:08:48] So moved.

[1:08:49] Thank you, Commissioners

[1:08:50] Roxborough and La Bau.

[1:08:52] All those in favor,

[1:08:54] please say aye.

[1:08:55] Aye.

[1:08:56] Any opposed?

[1:08:57] The ayes have it.

[1:08:58] Thank you very much, Mr.

[1:08:59] Chandler.

[1:09:00] Item number 16 is approved.

[1:09:02] Moving on to item number 17,

[1:09:05] I'd like to invite Ms.

[1:09:07] Chandler to say.

[1:09:09] Thank you.

[1:09:12] Okay, so I'll jump right

[1:09:14] in here on our commercial paper

[1:09:16] program.

[1:09:17] So, we are here seeking your

[1:09:19] approval for the replacement of

[1:09:21] the financial institutions that

[1:09:23] provide the liquidity facility,

[1:09:26] letter

[1:09:27] of credit as we call them, that

[1:09:28] supports our commercial paper

[1:09:29] program.

[1:09:33] And so, when we step back and

[1:09:35] think about the size and scope

[1:09:37] of our...

[1:09:39] our capital program there are a

[1:09:42] couple of mechanisms that we

[1:09:43] can use when we go out to

[1:09:45] actually fund that. Our capital

[1:09:49] program we can do short-term

[1:09:50] borrowing and then we can do

[1:09:52] long-term borrowing and I'm

[1:09:53] going to be talking about just

[1:09:55] here briefly both those

[1:09:57] mechanisms that we use

[1:09:58] for funding our capital

[1:09:59] projects. In this case we have a

[1:10:02] commercial paper program and

[1:10:04] we're coming before you

[1:10:07] informing you that the capacity

[1:10:08] on that program is $500

[1:10:10] million.

[1:10:11] We've gone through a

[1:10:14] competitive process.

[1:10:15] There were five proposers that

[1:10:19] came to us asking if they could

[1:10:20] provide us

[1:10:21] with this liquidity facility,

[1:10:24] the letter of credit.

[1:10:25] And of those,

[1:10:26] we actually chose two.

[1:10:29] One is an incumbent, Bank of

[1:10:30] America.

[1:10:32] And then the other one is a new

[1:10:34] entrant for us in terms

[1:10:36] of the credit facility,

[1:10:37] which is TD Bank.

[1:10:40] Bank of America has provided us

[1:10:42] with $300 million

[1:10:44] in credit facility support.

[1:10:48] Previously, they were $100

[1:10:49] million,

[1:10:50] so they did step up their

[1:10:52] commitment, $200 million,

[1:10:53] and so we're thankful

[1:10:54] for that, by $200 million.

[1:10:55] And then we have TD Bank that

[1:10:57] came in at $200 million.

[1:11:00] to comprise the $500 million

[1:11:01] of coverage.

[1:11:03] One other thing that I think is

[1:11:05] important just structure-wise

[1:11:07] for you all to know,

[1:11:09] we as part of our credit

[1:11:11] facilities we had four-year

[1:11:13] term.

[1:11:14] This year we went out and

[1:11:15] decided to go with a five-year

[1:11:17] term as we're thinking about

[1:11:19] what our funding needs will be

[1:11:21] over the next five years.

[1:11:23] So we just wanted to map that

[1:11:24] accordingly and make sure we

[1:11:25] had the right level

[1:11:27] of capacity.

[1:11:29] And from a cost standpoint,

[1:11:31] that extra year, I'm going

[1:11:33] to speak Wall Street terms,

[1:11:35] only cost us

[1:11:36] about two basis points.

[1:11:37] So for the amount of credit

[1:11:39] that they are providing to us

[1:11:41] to extend a year,

[1:11:42] it just made sense

[1:11:43] to do that.

[1:11:44] So that's why we went

[1:11:45] with the five years.

[1:11:47] We currently have about $390

[1:11:51] million outstanding on that.

[1:11:52] And when I talk about our

[1:11:55] long-term...

[1:11:58] the bond financing.

[1:12:01] I'll talk

[1:12:02] about how we're going to take

[1:12:03] out some of this short term.

[1:12:05] But the simple way to think

[1:12:07] about this is when we get ready

[1:12:09] to fund a capital project,

[1:12:11] it's much more cost effective

[1:12:12] for us and efficient for us to

[1:12:14] use a commercial paper program,

[1:12:17] like basically bridge

[1:12:18] financing.

[1:12:19] And then when we are ready and

[1:12:21] the market conditions are right

[1:12:22] for us to do so, we'll take

[1:12:24] out that financing

[1:12:26] and fix it out long term

[1:12:27] over a 30-year period.

[1:12:29] Because a commercial paper

[1:12:30] program,

[1:12:31] we can only issue maturities up

[1:12:33] to 270 days, and typically we

[1:12:35] do, we kind of roll it for

[1:12:37] about every 60 days.

[1:12:39] So we go out into the market

[1:12:40] and issue those short term

[1:12:41] instruments.

[1:12:45] Let's see, okay.

[1:12:48] Talked a little bit

[1:12:49] about this, so I think I've

[1:12:50] pretty much covered most

[1:12:52] of this.

[1:12:53] So we're...

[1:12:54] here today again just seeking

[1:12:55] your approval

[1:12:57] of the new banks that are

[1:12:58] coming into our liquidity

[1:13:01] facility portfolio and then

[1:13:02] we're also asking you for, to

[1:13:05] approve the documents that are

[1:13:07] associated with being able

[1:13:08] to bring that credit facility

[1:13:11] to close. And I'm happy to take

[1:13:14] any questions.

[1:13:18] Any questions

[1:13:19] from the board? Thank you very

[1:13:24] much.

[1:13:25] Thank you.

[1:13:27] I'd like to have a motion

[1:13:29] to approve amendment, excuse

[1:13:32] me, to approve item number

[1:13:33] 17.

[1:13:34] I'll make a motion.

[1:13:36] Second.

[1:13:37] Thank you, Commissioners La

[1:13:38] Bau and Narro.

[1:13:39] All those in favor,

[1:13:40] please say aye.

[1:13:41] Aye.

[1:13:42] Any opposed?

[1:13:43] The ayes have it.

[1:13:44] Item number 16 is excuse me,

[1:13:47] 17 is approved.

[1:13:49] Thank you.

[1:13:52] And the last item

[1:13:53] on the agenda, item number

[1:13:54] 18.

[1:13:56] Thank you.

[1:13:57] Earning my keep today.

[1:14:00] Okay, commissioners,

[1:14:02] so we're coming

[1:14:03] before you asking for approval

[1:14:10] to issue $3 billion

[1:14:12] in bonds.

[1:14:14] not to exceed $3 billion

[1:14:16] in bonds.

[1:14:17] And this request is partial new

[1:14:22] money and refunding.

[1:14:23] And I'll explain a little bit

[1:14:25] of that in just a second.

[1:14:26] And then we also want to make

[1:14:28] sure that we allow ourselves

[1:14:30] just a little bit

[1:14:31] of capacity when we go out

[1:14:32] into the market,

[1:14:33] that if conditions are really

[1:14:35] favorable, we want

[1:14:36] to have an opportunity

[1:14:37] to maybe lock

[1:14:38] in rates that are favorable

[1:14:40] at that time.

[1:14:41] We call that a sizing up,

[1:14:43] if you will.

[1:14:44] And so, we've left a little

[1:14:45] capacity to do that.

[1:14:46] And so, we're asking

[1:14:48] for approval on that today.

[1:14:50] Also want to remind you all,

[1:14:53] let me take it back

[1:14:55] to last month when I talked

[1:14:57] to you about what our capital

[1:15:01] expense needs would be

[1:15:03] for fiscal 24.

[1:15:05] And I mentioned

[1:15:06] to you that it was about a $4

[1:15:08] billion spend.

[1:15:09] So, we're coming to you

[1:15:11] today to ask for, again,

[1:15:14] the approval for us to be able

[1:15:16] to fund that

[1:15:17] through the debt financing.

[1:15:18] So, that's what this represents.

[1:15:21] So, we have about, currently,

[1:15:23] about $12 billion that's

[1:15:26] outstanding.

[1:15:28] And I always love to give a

[1:15:29] statistic here just so you all

[1:15:31] have a sense

[1:15:32] of what that means.

[1:15:34] So, I look at metrics

[1:15:36] like weighted average cost

[1:15:37] of debt.

[1:15:38] And so, all that $12 billion is

[1:15:41] currently outstanding that LAWA

[1:15:42] is paying for is costing us

[1:15:44] on average,

[1:15:45] on a weighted average basis,

[1:15:46] about 3.72%.

[1:15:49] So, that's pretty good rates

[1:15:52] to lock in

[1:15:53] on a fixed rate basis.

[1:15:55] You'll see here also that we

[1:15:56] have about $400 million

[1:15:59] in commercial paper.

[1:16:01] And I mentioned earlier there

[1:16:03] was a notation there about

[1:16:04] $390 million that we'll take

[1:16:06] out of that,

[1:16:07] but that's outstanding.

[1:16:08] And as part

[1:16:09] of this financing,

[1:16:10] we're actually going to

[1:16:12] reimburse ourselves and take

[1:16:14] that commercial paper line

[1:16:17] down to zero.

[1:16:18] So, we'll pay off the commercial

[1:16:19] paper and basically fix that

[1:16:21] out from short-term

[1:16:22] to long-term financing.

[1:16:26] You can see here,

[1:16:27] in previous resolutions,

[1:16:29] you all have approved $9

[1:16:32] billion in authorization under

[1:16:35] the '22 and '24 resolutions.

[1:16:39] So, I just thought it was

[1:16:40] important

[1:16:41] to show you where we are

[1:16:42] in terms of resolution

[1:16:43] authority that we still have.

[1:16:46] So, issue to date is the $3.4.

[1:16:49] If we were to add the $3

[1:16:50] billion onto this,

[1:16:51] you'll see that we're

[1:16:52] within that authority. And

[1:16:55] again, we're just coming

[1:16:56] to you asking for approval to

[1:16:57] go ahead and execute and issue

[1:16:59] those bonds next month.

[1:17:01] When you

[1:17:02] take out the $400 million on

[1:17:06] commercial, where does that come

[1:17:07] from? What money is used

[1:17:08] to take that out?

[1:17:09] The long-term financing.

[1:17:10] The Long-term financing

[1:17:11] of the $3 billion?

[1:17:12] Of the $3 billion.

[1:17:13] Thank you.

[1:17:14] So that's included.

[1:17:15] Yes.

[1:17:16] Okay.

[1:17:18] Before I get into the projects

[1:17:21] that are funded,

[1:17:22] I think it's really important

[1:17:24] for you all to know,

[1:17:25] and I want to acknowledge,

[1:17:26] I think there's some folks here

[1:17:27] from our financing team.

[1:17:30] When we sit

[1:17:31] down and make a decision to go

[1:17:32] out to the market, we pulled

[1:17:34] together a pretty comprehensive

[1:17:37] team of folks that work

[1:17:39] on LAWA's behalf.

[1:17:40] And it is lawyers,

[1:17:42] it is financial advisors, our

[1:17:45] financial institutions or our

[1:17:47] banking partners.

[1:17:49] And you have lawyers

[1:17:50] on every side of that.

[1:17:52] We've got a bond counsel that

[1:17:55] represents us and our best

[1:17:56] interests and makes sure that

[1:17:58] when we're putting these

[1:17:59] documents together and putting

[1:18:00] them in front

[1:18:01] of you as a board, they have

[1:18:03] been

[1:18:04] thoroughly, thoroughly vetted,

[1:18:06] right?

[1:18:07] Because we want to make sure

[1:18:08] that we're doing everything we

[1:18:09] can to have the proper

[1:18:11] disclosures when we go out to

[1:18:13] the public markets and there's

[1:18:14] virtually no risk of being,

[1:18:19] not disclosing what's important

[1:18:21] for us to disclose.

[1:18:22] So, I just want to make sure you

[1:18:23] understand that.

[1:18:24] I also want to make sure you

[1:18:25] understand that we hire a bond

[1:18:27] counsel, we hire a disclosure

[1:18:29] counsel, those two counsels are

[1:18:31] coming together

[1:18:32] making sure that these

[1:18:33] documents are

[1:18:35] like airtight right

[1:18:36] before we go out

[1:18:37] to the market.

[1:18:38] Then we have our financial

[1:18:39] partners,

[1:18:40] Jefferies is our senior lead

[1:18:42] banker underwriter along with

[1:18:45] Goldman Sachs and then

[1:18:46] co-managers we have Bank of

[1:18:48] America and minority-owned firm

[1:18:50] Siebert William Schenck.

[1:18:51] These are folks that are

[1:18:53] top-notch professionals

[1:18:54] in this industry that bring

[1:18:56] tons of airport bonds

[1:18:58] to the market.

[1:18:59] So, we're all working together

[1:19:01] in concert to make sure that

[1:19:03] LAWA is well represented,

[1:19:05] but also protected.

[1:19:07] Okay.

[1:19:08] And then just lastly,

[1:19:10] I just want to acknowledge our

[1:19:11] financial advisor, Frasca, our

[1:19:13] airport consultants.

[1:19:14] When you look at these

[1:19:16] documents and see what we call

[1:19:18] the report of airport

[1:19:19] consultants that supports these

[1:19:21] financings, which is WJA. And

[1:19:24] then, of course,

[1:19:25] as money is changing hands, we

[1:19:26] have a trustee who's making

[1:19:28] sure that the money is getting

[1:19:29] where it's supposed to back and

[1:19:31] forth when we close the

[1:19:32] transaction.

[1:19:34] Okay.

[1:19:35] So, let's talk about what this

[1:19:37] $3 billion is going to do.

[1:19:40] So, $2 billion of it will be

[1:19:43] what I call new money. Okay.

[1:19:44] And that's just a fancy term of

[1:19:47] saying we haven't issued bonds

[1:19:48] yet, and so we're going

[1:19:50] out and issuing bonds

[1:19:51] to be able

[1:19:52] to fund these critical projects

[1:19:54] for LAWA.

[1:19:55] You can see here,

[1:19:57] and I think it's important

[1:19:58] for you all to know

[1:20:01] particularly what these

[1:20:03] projects represent.

[1:20:05] So,

[1:20:06] terminal 5 renovation and

[1:20:07] reconstruction.

[1:20:09] Last, I think last board

[1:20:11] meeting, Hans came and gave you

[1:20:12] guys a really fantastic

[1:20:13] presentation showing you the

[1:20:15] direction of where T5 is headed

[1:20:17] and what that renovation and

[1:20:19] reconstruction projects

[1:20:21] ultimately will achieve.

[1:20:23] So part of the bonds that we're

[1:20:25] issuing now,

[1:20:27] about almost a billion

[1:20:28] of that, will go to continue

[1:20:30] to fund that project.

[1:20:33] Our Tibbet optimization, that

[1:20:37] project, basically our refresh

[1:20:39] of Tibbet.

[1:20:41] We'll be using bonds, the bond

[1:20:43] proceeds, I should say,

[1:20:44] to make sure that we continue

[1:20:46] to move that project forward.

[1:20:48] And then we have our central

[1:20:49] terminal area curbside.

[1:20:51] I probably should have brought

[1:20:52] some pictures here because I

[1:20:54] think pictures say a thousand

[1:20:55] words.

[1:20:56] But making sure that we are

[1:20:58] doing,

[1:20:59] making those improvements.

[1:21:01] to the functionality

[1:21:02] of our departure curbs,

[1:21:03] improving the canopies,

[1:21:05] the lighting elements, and just

[1:21:07] really bringing together a

[1:21:09] better look and feel

[1:21:10] for the airport.

[1:21:12] And then also

[1:21:13] on the arrivals,

[1:21:14] we're upgrading crosswalks,

[1:21:16] lighting, loading zones,

[1:21:18] and landscaping.

[1:21:20] And then I'll say,

[1:21:22] on the roadway improvements,

[1:21:24] John mentioned the ATMP.

[1:21:27] A little bit earlier,

[1:21:28] I actually had a chance to go

[1:21:29] to the showcase room and see

[1:21:31] all the great work that they've

[1:21:33] done there.

[1:21:34] And the roadways are going

[1:21:35] to be amazing.

[1:21:36] I mean, it's just going

[1:21:37] to be a game changer, I think,

[1:21:38] for the way people move in and

[1:21:39] out of LAX. So very excited

[1:21:43] about that and excited

[1:21:44] to be a part

[1:21:45] of raising the capital

[1:21:46] to be able

[1:21:47] to fund these projects.

[1:21:48] Then we're going

[1:21:50] to do a refunding.

[1:21:51] And again, all included

[1:21:52] in the $3 billion.

[1:21:54] We've got...

[1:21:56] When we issue bonds, we have an

[1:21:59] opportunity when the market

[1:22:01] presents itself

[1:22:02] to actually refinance some

[1:22:04] of those bonds

[1:22:05] to achieve lower debt service,

[1:22:08] just like a mortgage,

[1:22:09] if you will.

[1:22:10] You refinance your mortgage,

[1:22:12] you get lower payments.

[1:22:14] And so, we take advantage

[1:22:15] of that as well.

[1:22:16] So, we have a couple of series

[1:22:18] in here that we've identified

[1:22:20] that we think are really good

[1:22:21] candidates for us to improve or

[1:22:24] achieve some savings

[1:22:26] in terms of the debt service

[1:22:28] payments that we'll be making

[1:22:29] going forward.

[1:22:30] Those will be market dependent

[1:22:32] day to day.

[1:22:33] When we actually go out in

[1:22:35] August to price the bonds, we

[1:22:37] have a rule that if the net

[1:22:42] present value savings or what

[1:22:43] we can lower our payments

[1:22:45] by doesn't achieve

[1:22:46] at least a 3% rate,

[1:22:49] then we have a target.

[1:22:50] Then we won't do the deal

[1:22:52] because it just economically

[1:22:53] doesn't make sense for us

[1:22:54] to do so.

[1:22:55] So right now those bonds,

[1:22:56] we run

[1:22:58] in some analysis and it looks

[1:22:59] like they're right

[1:23:00] around the three,

[1:23:01] three and a half percent.

[1:23:03] But we also put in a little

[1:23:05] conservative cushion there just

[1:23:06] to make sure that when market

[1:23:08] conditions change,

[1:23:09] we got a little buffer

[1:23:10] in there, about 50 bases

[1:23:11] points.

[1:23:12] But that'll be kind of market

[1:23:14] dependent once we know better

[1:23:17] what's happening when we go

[1:23:19] to the market in August.

[1:23:22] And that comprises...

[1:23:24] the $3 billion.

[1:23:28] I think I've talked

[1:23:29] through most of this, but just

[1:23:31] to again give you all another

[1:23:32] snapshot, I think the important

[1:23:34] point here when we think about

[1:23:37] the capital program and the

[1:23:39] $15 billion over the next 10

[1:23:42] years, I just note that

[1:23:44] over the next five years

[1:23:46] in this period of time, 26

[1:23:48] through 30, that we're looking

[1:23:50] at issuing or we have project

[1:23:53] cost expenses that are about

[1:23:54] 12 billion.

[1:23:56] And the way we plan

[1:23:57] to finance that 12 billion over

[1:23:59] the next five years is broken

[1:24:00] down on the left-hand side.

[1:24:02] Again, we'll go out and we'll

[1:24:04] do some debt financing.

[1:24:06] There'll be some LAWA cash that

[1:24:09] we have available

[1:24:10] for capital projects.

[1:24:11] And then we'll also have some

[1:24:13] grant opportunities as well,

[1:24:16] close to about 700 million.

[1:24:18] Again,

[1:24:19] over that five-year period.

[1:24:21] So I always like to

[1:24:22] characterize this as that's

[1:24:23] our,

[1:24:24] that's a public agency's

[1:24:25] version

[1:24:26] of what a capital stack is,

[1:24:27] right?

[1:24:28] That's how we're funding these

[1:24:29] capital projects.

[1:24:34] And then I'll leave you

[1:24:36] with what that means when we go

[1:24:38] out and we put more debt

[1:24:40] on the books.

[1:24:41] What does that do to our

[1:24:42] coverage ratios and what does

[1:24:44] that do to our cost

[1:24:45] of employment?

[1:24:46] So just important for you

[1:24:47] to see that we have actually

[1:24:49] for 27 included those costs in.

[1:24:52] And when we spend time with our

[1:24:54] investors and the rating

[1:24:55] agencies, they always want to

[1:24:57] know that we're reflecting what

[1:24:59] we expect to issue.

[1:25:01] And then over time, what we're

[1:25:02] forecasting our funding needs

[1:25:05] would be particularly

[1:25:06] on the leverage side.

[1:25:08] So I just want to remind you

[1:25:09] of that.

[1:25:13] Question on this slide.

[1:25:17] How does it compare

[1:25:18] to other airports?

[1:25:19] on the cost per?

[1:25:22] Good question.

[1:25:23] So, I would say for 27, and I

[1:25:28] want to be careful

[1:25:29] about this, just in terms

[1:25:31] of benchmarking us to say

[1:25:34] West Coast airports and then

[1:25:36] large hub airports, right?

[1:25:39] So for 27, where I understand

[1:25:44] and have looked at different

[1:25:46] airports whether it's Chicago

[1:25:48] or whether it's where John came

[1:25:50] from, DFW, Atlanta, and New

[1:25:53] York, we're right there

[1:25:55] in the same category

[1:25:57] with these,

[1:25:58] with these airports.

[1:25:59] What is, what is important

[1:26:01] to note is that once we get

[1:26:03] through our fifteen billion

[1:26:04] dollar capital program where we

[1:26:06] will land and I would say that

[1:26:08] we would be probably

[1:26:10] at the top

[1:26:11] of those large hub airports.

[1:26:14] But I want to be careful about

[1:26:16] that because we all have

[1:26:17] different sizes and levels of

[1:26:19] capital programs that might

[1:26:21] shift those costs, right?

[1:26:23] So I just want

[1:26:25] to be really careful

[1:26:26] about that.

[1:26:27] And then with this formula,

[1:26:30] you know,

[1:26:31] how we calculate cost per

[1:26:32] employment, just remember the

[1:26:35] denominator is driven

[1:26:37] by the number

[1:26:38] of in plane passengers,

[1:26:40] right?

[1:26:41] And so, that changes too.

[1:26:42] So, sometimes it's not just an

[1:26:43] apples to apples,

[1:26:44] but as a large hub airport,

[1:26:46] given the size

[1:26:47] of our capital program,

[1:26:49] we are actually like right

[1:26:51] within that sweet spot,

[1:26:53] I would say over the next for

[1:26:55] 27 and 28.

[1:26:56] And then we start

[1:26:57] to get a little higher as we go

[1:26:58] out in terms of being one

[1:27:00] of the higher large hubs.

[1:27:03] And I'll bring,

[1:27:04] I can follow up with,

[1:27:06] I'd be happy to follow up with

[1:27:07] you and show you

[1:27:08] some comparisons because we

[1:27:10] actually do track that.

[1:27:11] Okay, thank you.

[1:27:15] Other comments, questions?

[1:27:18] Are you finished?

[1:27:21] Pretty much.

[1:27:23] So next steps,

[1:27:25] I just want you all

[1:27:26] to have a sense

[1:27:27] of what happens after this.

[1:27:28] So we are meeting

[1:27:31] with the rating agencies on

[1:27:32] Monday with the expectation

[1:27:34] within the week or two

[1:27:36] after that.

[1:27:37] We will get a rating, and

[1:27:38] certainly our expectation is

[1:27:40] that we will continue

[1:27:41] to be a AA-rated credit, one

[1:27:45] of the highest in the country

[1:27:47] for airports.

[1:27:48] Have we always been AA-rated?

[1:27:51] In the past, I'll say five,

[1:27:53] ten years, yes.

[1:27:54] But yes, yes.

[1:27:55] Thank you.

[1:27:56] Thank you, Marla.

[1:27:57] Thank you.

[1:27:58] And then we will go out.

[1:28:01] The documents that you all will

[1:28:03] be approving today will be

[1:28:05] fine...

[1:28:06] finalizing those and putting

[1:28:07] those out to the market

[1:28:09] for investors to review,

[1:28:11] have some investor meetings,

[1:28:13] and then the week

[1:28:14] of the 18th, we will go to

[1:28:16] New York and price the bonds.

[1:28:19] And then close,

[1:28:20] the expected close is

[1:28:21] September 2nd.

[1:28:28] So I am asking

[1:28:30] for authorization

[1:28:33] to issue the senior revenue and

[1:28:35] refunding revenue bonds

[1:28:36] for series 26 and an amount not

[1:28:38] to exceed $3 billion and also

[1:28:41] asking for your approval of the

[1:28:42] financing documents as outlined

[1:28:45] here on this on the slide.

[1:28:49] Thank you so much for all of

[1:28:50] your hard work and the teams.

[1:28:52] I know that so much goes

[1:28:53] into all of this and we

[1:28:56] appreciate that.

[1:28:57] So, the refunding of the older

[1:29:01] bond. So, it's a 2.8, right?

[1:29:03] Total 2.8, right?

[1:29:05] Yes.

[1:29:07] So, out of the 2.8, you said how

[1:29:08] much was new money versus the

[1:29:12] remainder would be the

[1:29:13] refunding of the commercial

[1:29:14] paper and the refunding

[1:29:15] of the older bonds

[1:29:17] for favorable rate?

[1:29:18] Yeah.

[1:29:19] So $2 billion.

[1:29:21] is the new money, which also

[1:29:23] includes the repayment

[1:29:26] of the commercial paper.

[1:29:27] And then the refunding is

[1:29:30] somewhere around $750 million.

[1:29:32] Okay, and those are the 2016

[1:29:35] bonds?

[1:29:36] 2016 bonds and potentially,

[1:29:38] if it makes sense for us

[1:29:39] to do so, the 2019 and 2010

[1:29:43] Build America bonds,

[1:29:44] so the BABs bonds.

[1:29:47] Okay, okay.

[1:29:51] And then the authorization that

[1:29:53] was originally given up to $9

[1:29:54] billion,

[1:29:55] so this is a tranche and you

[1:29:57] may be coming back to us

[1:29:58] for additional bond approval?

[1:30:00] Like this is an ongoing

[1:30:01] process?

[1:30:03] Yes, coming back for approval

[1:30:05] to issue more bonds and also

[1:30:08] potentially coming back to ask

[1:30:09] for additional authority,

[1:30:11] right, up to the $9 billion.

[1:30:13] So, yes, we will be back

[1:30:14] in the spring.

[1:30:17] Great.

[1:30:18] Thank you.

[1:30:19] Okay.

[1:30:20] Also, this could be a

[1:30:21] ticky-tacky point

[1:30:22] of clarification,

[1:30:23] but I think we're a combination

[1:30:26] of a hub and O&D airport,

[1:30:27] really,

[1:30:28] and I think we're mostly known

[1:30:29] for O&D,

[1:30:30] but you're comparing us to the

[1:30:32] hubs because we have so many

[1:30:33] flights in and out, but

[1:30:35] typically we're categorized as

[1:30:37] O&D.

[1:30:38] Yes, you are characterized as

[1:30:40] O&D, or yes,

[1:30:42] we are characterized as O&D,

[1:30:45] and our O&D traffic is

[1:30:46] about 85%. and just put it in

[1:30:49] context.

[1:30:51] I did mention just the

[1:30:52] comparison across the West

[1:30:54] Coast and I think the other

[1:30:57] West Coast airport,

[1:30:58] but clearly not size in terms

[1:31:00] of employment, no comparison,

[1:31:03] is Portland International,

[1:31:04] which is also primarily

[1:31:07] on the West Coast and an OND

[1:31:09] hub and their CPE is hovering

[1:31:11] around $30, right?

[1:31:15] And they, LAX is two and a half

[1:31:17] times the size.

[1:31:23] I just wanted

[1:31:24] to say thank you also for

[1:31:25] noting all the numerous

[1:31:26] professionals who are carefully

[1:31:27] and thoughtfully been part

[1:31:29] of the LAWA team.

[1:31:30] That was something that was

[1:31:31] important to some

[1:31:32] of the board members here.

[1:31:34] You know how hard you folks

[1:31:35] work and your team

[1:31:36] to put this together.

[1:31:37] This is a large amount

[1:31:38] of money.

[1:31:39] I know Hans is happy about this

[1:31:41] motion because he was here last

[1:31:42] time.

[1:31:44] But I just want to say thank

[1:31:45] you for all the hard work and

[1:31:47] due diligence that you've done

[1:31:48] in explaining the process.

[1:31:50] That's terrific,

[1:31:51] and thank you.

[1:31:52] Thank you.

[1:31:53] Thank you.

[1:31:54] Thank you for your support.

[1:31:55] Yeah.

[1:31:59] Any other comments or

[1:32:00] questions?

[1:32:01] Great.

[1:32:02] Could I have a motion to

[1:32:03] approve item number 18?

[1:32:04] I will make a motion.

[1:32:05] Second.

[1:32:06] Thank you, Commissioners La

[1:32:07] Bau and Roxborough.

[1:32:09] All those in favor,

[1:32:10] please say aye.

[1:32:11] Aye.

[1:32:12] Any opposed?

[1:32:14] Thank you very much.

[1:32:15] Thank you.

[1:32:16] And welcome again,

[1:32:17] Commissioner Daniel.

[1:32:22] Before we go

[1:32:23] into closed session,

[1:32:29] are there any speakers

[1:32:30] on the closed session item?

[1:32:32] Yes, Madam Chair, we have two.

[1:32:38] Sorry, not closed session.

[1:32:40] Thank you.

[1:32:41] I understand that there are

[1:32:42] late arrivals who would want to

[1:32:43] provide general comments.

[1:32:45] I would like

[1:32:46] to entertain those

[1:32:47] before we go

[1:32:48] into closed session, but please

[1:32:49] be reminded that we have a

[1:32:50] comment period for general

[1:32:51] comments as per the order

[1:32:52] of business listed

[1:32:53] on the agenda.

[1:32:56] Madam Secretary, how many

[1:32:57] speakers are there?

[1:32:59] We have two.

[1:33:01] Let's please give each speaker

[1:33:02] two minutes.

[1:33:03] Please call the speakers up.

[1:33:05] Could I please request the

[1:33:06] following two speakers

[1:33:07] to line up by the windows

[1:33:10] in the order I call

[1:33:11] out your name?

[1:33:14] Mar?a Mendon and Glenda Rico.

[1:33:35] Maria Mendon please step up to

[1:33:37] the lectern, state your name and

[1:33:40] your comments.

[1:33:45] Buenos d?as, mi nombre es

[1:33:48] Mar?a Rendon. He trabajado para

[1:33:51] Flying Food por cerca de 20

[1:33:53] a?os.

[1:33:56] Yo nunca eh tenido ni un

[1:33:57] problema con la compa?a, pues

[1:34:01] desde, mis a?os de trabajo lo

[1:34:03] comprueba. La compa?a nunca ha

[1:34:06] sido mala conmigo. Es una buena

[1:34:08] compa?a, si a m? la compa?a me

[1:34:11] robara mi salario no estar?a ay

[1:34:14] trabajando. En segunda, he

[1:34:17] sufrido tanto acoso y agresi?n

[1:34:21] por parte de los lideres

[1:34:22] sindicales que hasta el momento

[1:34:24] tuve que pedir mi cambio de mi

[1:34:28] ?rea de departamento porque es

[1:34:31] demasiado la presi?n que tengo

[1:34:34] ay por parte de los compa?eros,

[1:34:37] y no todos,

[1:34:39] algunos son buenos. Desde las

[1:34:43] condiciones de mi ?rea de

[1:34:44] trabajo pues se supone que

[1:34:46] nosotros como trabajadores

[1:34:48] tenemos que mantener nuestra

[1:34:49] ?rea limpia. Algunos le echan

[1:34:52] la culpa a la compa?a, no es

[1:34:54] culpa de la compa?a que el

[1:34:55] departamento este sucia, es

[1:34:58] culpa de nosotros mismos porque

[1:35:01] los compa?eros tenemos que

[1:35:03] limpiar nuestra ?rea. No tengo

[1:35:07] nada m?s que decir. Muchas

[1:35:09] gracias por atenderme. Gracias.

[1:35:20] Thank you. Glenda Rico,

[1:35:24] please step up to the lectern

[1:35:26] and provide your comments. Thank

[1:35:27] you.

[1:35:29] Buenos d?as a

[1:35:30] todos los presentes. Mi nombre

[1:35:31] es Glenda Rico y trabajo en el

[1:35:34] departamento de frutas. Llevo

[1:35:37] 24 a?os trabajando ah?.

[1:35:39] Durante mis a?os,

[1:35:40] es una compa?a excelente,

[1:35:42] llena de oportunidades. Y lo

[1:35:45] triste que estoy pues de ver

[1:35:48] tantas cosas contrarias a la

[1:35:50] compa?a. Si fuera mala, no

[1:35:52] estuviera trabajando por tantos

[1:35:54] a?os. Gracias a Dios, mis hijas

[1:35:56] ahora se han graduado. Y le doy

[1:35:58] gracias a la compa?a porque me

[1:36:00] ha dado un empleo, una

[1:36:02] estabilidad donde yo he podido

[1:36:05] ayudar a mis hijas a estudiar y

[1:36:07] graduarse. Y hay muchas

[1:36:09] familias que dependemos de

[1:36:10] ello, y no entiendo por qu?

[1:36:12] dicen que es una mala compa?a.

[1:36:14] A veces no queremos seguir las

[1:36:15] reglas, reglas que tenemos que

[1:36:17] seguir, y hay gente que no le

[1:36:19] gusta seguir las reglas. No es

[1:36:21] la compa?a. A veces somos

[1:36:23] nosotros los mismos empleados

[1:36:25] que no nos gusta seguir reglas.

[1:36:27] Entonces no es la compa?a. La

[1:36:29] compa?a ofrece el trabajo,

[1:36:31] ofrece las reglas,

[1:36:33] y dice desde un principio,

[1:36:34] que uno se mete a trabajar, te

[1:36:38] da el manual y te dice qu?

[1:36:41] hacer y qu? no hacer. A veces

[1:36:43] no nos gusta seguir las reglas,

[1:36:44] pero la compa?a es excelente y

[1:36:46] est? llena de oportunidades.

[1:36:48] Gracias.

[1:36:59] Any additional speakers?

[1:37:02] No Madam Chair.

[1:37:08] I'd

[1:37:09] like to pass it over to the

[1:37:10] City Attorney before we break

[1:37:11] into closed session.

[1:37:12] Just to clarify, Madam Chair,

[1:37:15] general public comment is now

[1:37:16] closed after being reopened.

[1:37:18] Thank you.

[1:37:20] Vice President Aramayo,

[1:37:21] the board will now go

[1:37:22] into closed session

[1:37:24] to discuss items listed

[1:37:25] on the closed session agenda.

[1:37:27] We will then go back

[1:37:28] into open session

[1:37:29] to report back

[1:37:30] on any actions taken

[1:37:31] in that closed session.

[1:37:34] Thank you.

[1:40:22] Board has returned

[1:40:23] from closed session.

[1:40:24] Does the city attorney

[1:40:25] have anything to report?

[1:40:27] Thank you, Vice President

[1:40:28] Aramayo.

[1:40:29] No, there's

[1:40:30] nothing to report

[1:40:31] from closed session.

[1:40:32] Thank you.

[1:40:33] And does any commissioner wish

[1:40:34] to request items

[1:40:35] for future calendaring?

[1:40:38] Did any commissioner

[1:40:39] participate in a LAWA

[1:40:40] related event and wish to

[1:40:41] share information about it?

[1:40:43] I did yesterday. I

[1:40:44] participated in the LA

[1:40:45] Current Affairs Forum. I was

[1:40:48] there, and also Aaron Trapp and

[1:40:50] Nicole Carsell were there. The

[1:40:52] keynote speaker was

[1:40:53] Councilmember Emeritus Paul

[1:40:55] Krikorian, and he's educated

[1:40:58] us,

[1:40:59] made a very good presentation.

[1:41:01] He's now the Executive Director

[1:41:03] of the Office of the Mayor's

[1:41:05] Events for the city of Los

[1:41:06] Angeles. So, he gave us a really

[1:41:08] great insight

[1:41:09] about what the mayor is doing

[1:41:11] to get ready

[1:41:12] for and what our city is doing

[1:41:13] to get ready for the

[1:41:14] Olympics. Very good event.

[1:41:17] Thank you. Any others? Our next

[1:41:21] board meeting is scheduled

[1:41:22] for Thursday, August 27, 2026

[1:41:24] at 10 a.m. That completes our

[1:41:26] business for today. This

[1:41:28] special meeting is adjourned.

Special Meeting @ LAWA Skyview Center

Agenda

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