Good morning, everyone.
Morning!
Good morning.
Good morning and welcome
to the Board of Airport
Commissioners Special Meeting
on July 9th, 2026.
This meeting is now called
to order at 10 a.m.
Please call the roll.
Commissioner Daniels.
Here.
Commissioner La Bau.
Present.
Commissioner Narro.
Here.
Commissioner Roxborough.
Here.
Commissioner Velasco.
Vice President Aramayo.
Present.
President Johnson is absent.
Thank you.
Before anything else...
I do want to welcome our new
board member, Commissioner
Daniels.
Congratulations on your recent
appointment.
I know I speak for the board
when I say we look forward
to working with you, and I'd
like to welcome you
to share a few words,
if you'd like.
Thank you very much, Vice
Chair, President Aramayo
for allowing me a few minutes
to introduce myself.
Many people in...
the significant part
of my career started here.
Honor.
But first, I'd like to thank
the mayor for having the trust
to appoint me. It is not
something that I sought, it
sought me, but I look forward
to working with,
learning from the public, this
is a different vantage point
for where my background, you
may not know, but I started my
career as a civil rights
attorney.
I thought that would be all
that I would do.
I loved working with civil
rights issues. Access the
opportunity that led
to legislative counsel for the
DC public schools were
educational policy and
budgetary issues and
through the quality
of education for Urban children
which led to me joining Marriott
Corporation on behalf
of the DC...
to develop a career academy
for those kids who are not
going to be going college,
to a career that would lead
to opportunities
in the hospitality industry.
It led me to actually go
to work for Marriott
to develop their first
National Minority Purchasing
Program and will seem
like desperate jobs, but
for me, there was a consistent
line that was creating
opportunity for those who don't
have our opportunities at a
better future. The mission at
Marriott, Marriott ended up
buying that
time Host International which
was the largest concession in
the US at the time.
That led to me moving from DC
to Santa Monica where I became
an adult at national response
major airports. The first in the
country.
I left Marriott, I left host
to join Aramark, president
of a division where I ran
business in their
K-12 and their college training
program which led me
to starting my own company...
...Inc., based here in Los
Angeles. 1996 we
actually opened on Dr.
Kingsburg of 1996, I mean
January 6, 15, 1996, small
facility
on Bradley facility. We grew
that business from one
location to 50 locations in nine
airports. That's because LAX
gave me an opportunity. I
learned a business really here
at LAX.
I learned a lot of things here
at LAX and I hope that many of
those learnings served me well
as a commissioner.
However, that was then and this
is now.
I realize my era at LAX
standpoint
of being an advocate sitting
out where you sit is very
different now in the role that
I will play as a commissioner.
I have to have a much broader
perspective.
I have to realize all
of the various stakeholders,
starting with the people,
starting with the airlines,
starting with all the people
who make this airport such.
I want to thank commissioners
for their warm welcome.
I've got a lot
to learn.
I plan to be a good team
member.
I plan to lean on my other
commissioners
to learn.
I plan to work with this great
staff to continue
to make LAX a great airport.
So, Vice Chair, Maya,
Aramaya.
Forgive me if I said it
incorrectly.
Thank you for the opportunity
to say a few words.
And, Commissioners, thank you
for your warm welcome.
Thank you.
The Board will now hold its
annual election
of officers pursuant to City
Charter Section 503A.
Could we please hear
nominations for the position
of President?
I will make a motion.
Thank you.
Thank you, Commissioner
La Bau.
I'll second it.
Thank you.
A second from Commissioner
Roxborough.
Are there further nominations
for that position?
Did you nominate Matt
Johnson?
Yeah, Matt Johnson.
Thank you.
I wanted to make sure.
Hearing no other nominations,
could I please have a motion
to approve President Matt
Johnson?
I will make the motion, yes.
Thank you, Commissioner
La Bau.
Second?
Second.
Thank you, Commissioner
Roxborough.
All those in favor,
please say aye.
Aye.
Any opposed?
The ayes have it.
I'd now like
to take nominations
for the position
of vice president.
I would like
to nominate the awesome
Vanessa Aramayo.
Second.
Thank you, Commissioner
Narro, and thank you,
Commissioner Velasco.
Are there any further
nominations
for that position?
Hearing none, I have a motion
to approve the nomination
from Commissioner...
I'll make that motion.
...Narro, thank you,
and the second from
Commissioner Velasco. All those
in favor, please say aye.
Aye.
Any opposed?
The ayes have it.
Thank you very much,
Commissioners,
for your trust.
I look forward to continuing
to work alongside you and the
Los Angeles World Airport.
In President Johnson's absence,
I will provide the opening
remarks and chair today's
meeting.
Earlier this morning, several
commissioners joined members of
the LAWA team and our airline
partners for this year's LAX
Fly Quieter Awards.
The Fly Quieter program, now
in its sixth year, is an
education and recognition
program designed to encourage
quieter airline operations
by commercial air carriers
at LAX.
Representatives from these
airlines who you were
recognized
at the ceremony this morning,
are here with us today.
And CEO Ackerman will go
into this in a bit
for more detail
during his management report.
But for now, I'd like
to invite the honorees to stand
and receive acknowledgement
for their efforts.
Congratulations again,
and thank you for your work.
When we last met,
a few short weeks ago, our city
and our airports were just
beginning to welcome the world
for the FIFA World Cup.
Today we are nearing the
conclusion
of the tournament here
in our city and I want
to thank, I want
to take a moment to recognize
the extraordinary effort that
has gone
into making this a success here
at the airport.
I want to thank the LAWA
team, our airline and airport
partners, the federal agencies,
the first responders,
volunteers,
and everyone who has worked
tirelessly and often
behind the scenes to ensure the
airports have remained safe,
secure, welcoming, and
efficient throughout the entire
tournament.
Your professionalism has been
on full display, and you have
represented both our airports
and our city exceptionally
well.
As visitors begin their
journeys home or
on the next round
of tournament
over the coming days,
we can all take pride in the
role our airports have played
in helping Los Angeles shine
on the world stage.
Moving on, just a few days ago
we also celebrated the 4th of
July.
While many of us had the
opportunity to spend time
with family and friends, we all
know that our airports never
close.
Holidays are often our busiest
travel periods and that means
thousands
of dedicated employees are
on the job.
Keeping operations running,
assisting passengers,
maintaining our facilities,
ensuring public safety,
and supporting every aspect
of airport operations.
To all our frontline employees
and airport partners who
worked...
through the holiday weekend,
thank you.
Your commitment and
professionalism allow millions
of travelers to safely reach
their destinations regardless
of the day on the calendar.
Finally, I'd like
to acknowledge that President
Johnson is not
with us today due
to a recent and unexpected loss
in his family.
Our hearts are
with him and his loved ones
during this extremely difficult
time.
On behalf of the Board of
Airport Commissioners and
everyone at LAWA, we extend our
deepest condolences and
support.
Please join me in observing a
brief moment of silence
for the Johnson family.
Thank you.
And now I'd like to move
to CEO Ackerman's management
report and update.
Mr. Ackerman?
Thank you very much, Vice
President Aramayo.
I'm going to start my update
with our key report indicators.
It's, again, a snapshot
of our performance at LAX and
VNY, in this case, May and
June.
Overall revenue is up 3%
compared to last year, with
parking revenue up strongly 4%.
Cargo continues
to perform well,
increasing 12% year
over year.
And our ASQ cleanliness scores
improved this month, reflecting
the dedication and the hard
work of our custodial team.
And as we reach the two-year
countdown
to the opening ceremony, again,
two years to the Olympics, we
continue to invest in the
people and preparations needed
to support this historic event.
Our ambassadors are working
to ensure our airports are
ready to welcome the world
every day.
As Vice President Aramayo
mentioned, this morning we
recognized representatives
from nine major airlines
at LAX for their efforts
to reduce noise
from aircraft operations as
part of LAWA's Fly Quieter
program.
You can see their logos up
on the screen.
These airlines are rated
in performance, rated
in accordance
with five scoring elements and
within three categories based
on the number
of average daily operations
at LAX.
The Fly Quieter program is also
the first commercial airport
fly quiet program in the nation
that allows airlines
to earn additional bonus points
for voluntarily using noise
mitigating technology on
aircraft and importantly
engaging with community and
stakeholders such as
participating in the LAX
Community Noise Roundtable.
We heard this morning that
because of the efforts
of a couple
of these airlines, we have had
airline representatives
at 100% of our community
meetings,
you know, talking to neighbors
about the impact they have and
explaining, you know,
from the airline and from an
actual pilot's perspective,
you know, what they're doing
to make less impact
on the neighbors.
So, we're really grateful to the
airlines that helped us get
to 100 percent this year.
As of July 1st, all critical
LAX facilities are powered
by receiving station X,
also known as RSX.
This project is a partnership
between LAWA and LADWP, and
it's been years and literally
years in the making.
And it's aimed at addressing
the persistent power
reliability, redundancy, and
capacity issues that we've
suffered for years at LAX.
And as a result
of this effort, we now have a
dedicated, state-of-the-art,
high-quality, reliable, and
resilient power system that has
sufficient capacity.
This project was completed
over several years, all without
serious injury or mishap.
And that's thanks
to the hundreds of LAWA, LADWP,
you know, city family
contractors and partners who
planned, engineered, and
constructed,
and commissioned this project.
And if I'm not mistaken, this
is the first receiving station
that has been built in Los
Angeles in more than 30 years.
We were with very senior DWP
leaders a few months ago
at the facility,
and they had been
at the agency
for more than three decades,
and this is the first receiving
station that they had seen.
So we're proud
to build it here.
World Cup festivities.
Commissioner Aramayo also
mentioned our vital role
in shaping the first impression
of the city for millions
of global visitors,
and in recognition
of the teamwork that went
into preparing for the 2026
World Cup, we provided select
employees the chance
to be a part
of the excitement firsthand.
Eligible employees were invited
to participate in a raffle
for exclusive World Cup
experiences,
including admission
to the official FIFA Fan
Festival at the Coliseum.
And additionally, our HR team
hosted a special celebration
for the World Cup World Round
32 watch party and our brand
new break room and patio area
on the fifth floor
of this building.
Members of Team LAWA enjoyed a
rooftop tailgate, snacks,
and got some of the matches on
big screen TVs and gave
everybody a front row feel.
And we deliberately purchased
tickets to this event and we
sent our employees because our
employees are what made us so
successful.
And what really made this
airport show so well as the
world came in.
So, we sent our own employees
to the event.
Last weekend, Team LAWA
celebrated America's 250th
birthday by marching
in the LAX Coastal Chamber of
Commerce Westchester Fourth
of July Parade.
LAWA entry featured the airport
affairs team along with LAX
Pups and the Airport Police's
Bearcat Motors Unit and Cadets.
The Greater San Fernando
Valley Chamber it Chambers
Hats Off Gala VNYs' Airport
was honored with the Captains
of Industry Aviation Award,
recognizing its leadership and
continued impact on the
region's aviation industry.
Its prestigious recognition
highlights VNYs' commitment
to operational excellence,
community partnership,
and its vital role
in supporting families in the
San Fernando Valley.
Congratulations to the entire
VNYs' team
on this well-deserved honor.
All while marked an exciting
milestone for the Airfield and
Terminal Modernization
Program, or ATMP as we lovingly
call it, with the completion
of the ATMP Showroom.
It's a new space designed to
showcase the vision and the
impact of this project
on the neighborhood.
Located next door at Skyview
South, the showroom serves as
an interactive hub where team
members, stakeholders, and
partners can explore how the
ATMP Roadway Improvements
Project is enhancing safety,
improving traffic flow,
and modernizing access
to LAX.
Drawing on project visuals,
displays, and storytelling, the
space highlights the scale and
significance of one of the
airport's most transformative
infrastructure efforts.
The project team is planning an
ATMP showroom community open
house later this month that
will allow guests to experience
the space and learn more about
the work shaping the future
of LAX.
Last month we welcomed 36 new
team members across various
divisions and groups and as
always if you see these faces
up on the screen around campus
please say hello.
I give them a warm welcome to
Team LAWA and as always, a shout
out
to the amazing LAWA HR team
for continuing to recruit high
quality teammates to join,
to join our efforts.
Thank you.
And speaking of high-quality
folks, in June, a total of 41
summer interns were hired and
placed in groups
across LAX and VNYs',
including Airport Development
Group, Airport Affairs,
Finance, Accounting, HR,
Operations and Maintenance,
Government Affairs, Badging,
APD, Guest Services, and more.
These talented students bring
fresh perspectives.
They bring enthusiasm
to LAWA.
They're going to have the
opportunity
to learn alongside some of the
industry's very best
professionals.
I want to close
on a bit of a sad note, I end my
report today with the news
of the recent passing
of two valued members
of our LAWA family.
Enrique Guerra and Rodney
Rigomaro. Mr. Guerra worked as
a custodian in Terminal 4
at the time of his passing. He
began his career with the city
of Los Angeles in January, 23.
He was laid to rest in his
home, home country of
Guatemala.
Mr. Rigomaro was an airport
superintendent
of operations and passed away
on June 30th.
He began his career with the
city is as a management
assistant
in the personnel department
in February of 1981.
Our thoughts are
with their colleagues,
friends and loved ones
during this difficult time.
And this concludes my CEO
update.
Thank you, Mr. Ackerman.
Are there any speakers
on this presentation?
There are no speakers
on this presentation.
Does any commissioner have any
questions
on the CEO's update?
If there are no further
questions or comments
from the Board, we will now
move to the next item
of business.
I'd like to invite
Commissioner La Bau to provide
a brief report regarding the
recent Security Committee
meeting held on June 18th.
Yes, thank you.
The Board Security Committee
meeting convened on Thursday,
June 18th, 2026,
to receive a briefing from
Deputy Executive Director of
Public Safety and Security,
Martin Elam, and our Airport
Chief of Police, Cecil
Rambo.
The briefing provided a
comprehensive overview
of the LAX Police Department's
public safety staffing
validation and the workforce
optimization assessment.
And some
of the things that we spoke
about were key assessment
findings, peer benchmarking
efforts, ongoing stakeholder
engagement,
and strategic planning
for the future direction
of LAX PD.
This briefing also included a
very important virtual
discussion addressing several
critical focus areas.
We spoke about the patrol
deployment strategies
for the airport,
workforce sustainability for
our police and security
professionals, the utilization
of civilian and security
personnel
in keeping our airport safe,
transit security readiness,
and alignment with aviation law
enforcement best practices
around the country.
The committee extends our
sincere appreciation as well
to the following individuals
for their contribution and
expertise in this.
Assistant Chief Mark Hamilton
from the Dallas-Fort Worth
Airport, Deputy Chief Timothy
Tyler from the Metropolitan
Washington Airports
Authority, which is Dulles and
Reagan, Mike Villa, Director
of Security and Emergency
Management, and Chief Sean
Guillabo from the Seattle
Airport, as well as Major
David Wilson from the Atlanta
Airport, and lastly, Kevin
Murphy, the Executive Director
of ALEEN, the Airport Law
Enforcement Agency's Network.
I'd really like
to also recognize Martin Elam
and Chief Cecil Rambo and their
respective teams
for their continued dedication
in maintaining airport safety
and security.
Thank you.
My report's concluded.
Thank you, Commissioner La
Bau.
Moving on to general public
comments,
for everyone's information,
as a courtesy and
for the first time, we will be
testing...
testing a live language
interpretation through
real-time translated text
displayed on the screen
during the meeting.
Please note that this is a
pilot program and the accuracy
of the real-time translated
text may vary.
This is the same information
that has been provided to all
the speakers here today.
Are there any speakers
on non-agenda items?
Madam Chair, we actually have
eight speakers
for general so far.
Thank you.
Would you please...
Call them up.
Thank you, Vice President,
Aramayo, at this time, could I
please request the following
speakers to please line up
by the windows
in the order I call
out your name.
Steve Bills, Jason Irani,
Marina Zamora, and Maria
Lorena Herrera.
Now as they come up, I will add
as a reminder that general
public comments must be related
to Los Angeles World Airport
business.
Could you please tell me again
how many speakers we have?
And let us give each speaker
one minute.
When your name is called again,
please come forward
to the lectern, speak directly
into the microphone and state
your name.
Before you begin your comments,
Steve Bills, please go
to the lectern, state your
name,
and provide your comments.
Good morning, Commissioners.
My name is Steve Bills.
I am here on behalf of the
workers testing the APM system.
I am the business agent
for IUEC Local 18, the union
that represents these workers.
For years, these highly skilled
workers have been testing this
train for Alstom
while receiving wages and
benefits well
below the prevailing rates.
Rather than strike, these
workers followed the project
labor agreement and pursued
their claims through the
grievance and arbitration
process at significant expense
to the union.
The arbitrator found that
Alstom and Links has failed to
pay the wages and benefits
required by the PLA.
Alstom has since refused
to comply with the arbitration
decision and has shamefully
refused
to pay the arbitrator's fee.
Now, Alstom has sued the union
and is asking the court to
invalidate the very dispute
resolution process established
under the PLA.
Instead of paying wages and
benefits these workers earned,
Alstom is forcing the union.
Thank you.
Jason Eroni, please go to the
lector and state your name and
provide your comments.
Hi, good morning, Jason
Eroni.
I was a...
I was a bidder on a bid that
was out in February.
I was the lowest bidder
by a factor of three
from the next one.
I was found to be
non-responsive.
I protested it.
The protest, as you can see
with the paperwork that you
have on you, the LAWA letter,
the protest did not go
anywhere.
LAWA says it was duly received
and remains on record, but
there should be a binary
response to that, either upheld
or rejected.
LAWA then went ahead and
flip-flopped and they accepted
us as responsive
in the letter. As you can see
and highlighted, but they went
to do a novel approach and they
said we're gonna split. We're
gonna cherry pick the line
items
from your bid. The lowest bid
in the next bidder up,
which is completely not in line
and they referenced some City
of Los Angeles Charters.
I included in the letter.
There is no Charter, it, there's
no rule that says you can split
a bid.
Nobody would bid such a thing.
You're going to get this item
for approval next month.
Please take a look at it.
I'll probably be here again
to talk about that then.
Thank you very much.
Thank you.
Marina Zambora, please go
to the lectern, state your
name,
and provide your comments.
Buenos d?as para todos,
comisionados.
Mi nombre es Marina Zamora y
trabajo en Flying Food Group.
I'm sorry, no translation?
La traducci?n...
The translation is
on the screen.
Oh, that's okay.
It's in the screen.
Esta en la pantalla.
Thank you. Gracias.
Want her time restarted?
Yes, please restart her time.
En el ?rea de alimentos fr?os,
estoy aqu? porque nos
enfrentamos a
condiciones de seguridad
aterradoras en el trabajo.
OSHA ya ha emitido m?ltiples
multas contra Flying Food
Group,
por fallas cr?ticas de
seguridad, incluyendo cerrar
una puerta de salida con llave
desde el exterior durante una
l?nea de protesta planificada
por los trabajadores, y tener
cuartos fr?os que no se abr?an
desde adentro.
Todo empeor? aun m?s el 22 de
enero de 2026, cuando estall?
un incendio y dos de mis
compa?eros de trabajo se
quedaron atrapados dentro de un
cuarto fr?o cerrado con llave.
Nos hemos presentado ante LAWA
y hemos testificado 50 veces
sobre esto.
Thank you.
Muchas gracias.
I'm sorry.
Thank you.
Before I call the next speaker,
can I please request the
following set of speakers to
please line up by the windows
in the order I call
out your name.
Kenya Nazario, Estela Ruiz,
Alvaro Suarez, and Esperanza
Maciel.
Maria Lorena Barrera, please
step up to the lectern,
state your name,
and provide your comments.
Thank you.
Gracias.
Buenos d?as a todos.
Mi nombre es Lorena Barrera y
trabajo en el ?rea de comida
friar en Flying Fruit Group.
Las violaciones de Flying
Fruit Group son repetidas.
Se extiende desde el robo de
salario,
severas violaciones de
seguridad,
OSHA violaciones de la
seguridad p?blica, del CHP,
hasta represalias ilegales.
Esta compa?a ha probado que no
respeta ni la ley, ni los
trabajos, ni a los
trabajadores, que hemos dado
evidencias de puertas
en llevadas durante incendios,
sueldos robados,
y represalias ilegales.
Gracias.
Kenya Nazario, please go to the
lectern and please speak
directly into the microphone so
everyone can hear you,
state your name,
and provide your comments,
please.
Muy buenos d?as.
Mi nombre es Kenya Nazario.
Gracias por darnos la
oportunidad de estar aqu? y
poder...
decir realmente lo que es.
El d?a de hoy estamos un grupo
de empleados de Flying Food
Group.
Trabajo en el ?rea del equipo
por m?s de tres a?os.
Una vez m?s, vinimos para dar a
conocer la verdad.
No necesito nada escrito porque
considero que cuando t? no
mientes,
no necesitas recordar nada.
Nosotros nos sentimos bien y a
la misma vez tristes por saber
que solo tenemos seis meses de
prueba.
En los otros a?os anteriores,
la empresa no ha tenido estos
incidentes.
Algo extra?o que ahora est?
sucediendo, cuando siempre ha
sido una buena empresa.
Y mientras te hace ver a
compa?eros que hablan mal y le
muerden la mano a quien le da
de comer.
Ok, creo en Dios y creo que
ustedes van a tomar una buena
decisi?n sobre la empresa.
Gracias.
Next.
Estela Ruiz, please go
to the lectern, speak directly
into the mic, state your name,
and provide your comments.
Estela Ruiz.
Next speaker, Alvaro Suarez,
please go to the lectern.
Muy buenos d?as a cada uno de
las personas que se encuentran
ac?, hoy d?a, ac?.
Mi nombre es ?lvaro Su?rez,
trabajo para Cold Food.
El motivo hoy d?a de estar ac?
es porque realmente me siento
bastante preocupado, porque,
o pienso que bastante desleal,
verdad, lo se le ha hecho en la
compa?a con eso de que quieren
quitarles el permiso para poder
entrar al aeropuerto.
Y siento que detr?s de los m?s
de 600 empleados que nos
podr?amos quedar sin trabajo,
hay 600 familias que tambi?n
pod?an padecer de hambre y de
muchas cosas. Porque entendamos
que detr?s de cada uno de
nosotros est? el sustento de
nuestras familias. Gracias
Thank you.
Esperanza Maciel.
Buenos d?as.
Mi nombre es Esperanza
Maciel.
Yo trabajo para la compa?a
Flying Food.
M?s de 10 a?os.
Excuse me,
can you please talk closely
to the mic?
M?s de 10 a?os tengo trabajando
para la empresa.
Me siento muy contenta,
muy orgullosa de trabajar ah?.
En mi vida, desde que llegu? a
este pa?s, he prosperado.
No tengo ninguna queja.
No siento que haya alguna
amenaza de trabajo.
Se ha hecho lo que todas las
empresas han hecho.
Vienen muchos compa?eros como
yo a decir lo que les puede
afectar si este este trabajo se
cierra. Nosotros hemos usado
estas camisetas y nos hemos
unido porque estamos en mismo
acuerdo en que necesitamos este
trabajo.
Que mucha gente lo necesita.
Hay gente de 10, de 20, de 22
a?os trabajando para esta
empresa.
No hay nada malo,
nada que no se pueda arreglar.
Yo trabajo todos los d?as en el
piso.
Gracias.
Thank you very much.
Estela Ruiz.
That's it.
Oh.
Madam Chair, those are all the
speakers for public comments.
Thank you.
Are there any neighborhood
council speakers today?
There are none.
Moving on to the approval
of minutes,
could I please have a motion
to approve the minutes
for the June 18, 2026 special
meeting?
So moved.
Second.
Thank you, Commissioners
Roxborough and Commissioner
La Bau.
All those in favor say aye.
Aye.
Any opposed say no.
And any abstentions?
Yes.
Commissioner Daniel stepped
out so he's going to be absent
on this item.
Very good.
Moving on
to the consent items.
Commissioners, item 5 regarding
the Second Amendment to the
Concession Agreement with first
class vending will be pulled
off today's agenda and item 11
regarding the FAA grant will be
pulled from the consent list
to allow staff
to provide a presentation
on that item.
In addition to those,
does any Commissioner want
to pull an item
for discussion?
As a reminder,
if there are speakers
on any consent item,
that item will be pulled from
the consent list so we can hear
from the speakers.
Could the Board Secretary
please advise if there are
speakers on any of the consent
items?
There are none.
Very good.
With the aforementioned items
pulled...
We have left items number 1,
2, 3, 6, 7, 9, and 10.
Right.
1, 2, 3, 4.
1, 2, 3, 4, 6, 7, 8, 9, and
10.
And 11.
11 was pulled.
It's pulled for...
...presentation.
Could I have a motion to approve
those consent items.
Second.
Thank you commissioners
Roxborough and La Bau. All those
in favor say aye.
Aye.
All those
opposed no. Those consent items
are approved. Commissioners let
us again hold our questions
until after the staff reports
for the next section. We are now
on item number 12.
Mr. J?
No?
11.
11, excuse me.
Lead in.
Number 11, could I please have
Mr.
Doug Webster?
Thank you.
Very good.
Good morning, Commissioners.
Doug Webster.
I'm the Chief Operations and
Maintenance Officer.
This morning, for item number 11
it's being presented to
accept a grant offer from
the FAA to
support and enhance our vehicle
movement area transponder
network at Los Angeles
International Airport in
VNYs.
We desire to provide you
with some context as
to what the grant will achieve
to enhance safety
at our airports.
I have asked Neil Weingarten,
our director
of airport operations,
to walk you
through a quick overview of
what this grant will achieve.
Good morning, thank you.
So a quick overview
of what the VMATs do.
These are Vehicle Movement
Area Transponders.
They utilize the system called
ADS-B, which is Automatic
Dependent Surveillance
Broadcast, which is a really
fancy term,
but if you've ever used
FlightAware or FlightRadar24,
this data actually comes
from the same place.
The difference is we're
installing it in vehicles
on the airfield to give us
situational awareness and
to aid in the insurance
of no vehicle collisions
on the airfield.
They provide a highly precise
real-time location information
and situational awareness.
They're viewable in the tower
through ASDX is what we call it,
but it stands for Airport
Surveillance Detection
Equipment and Model X.
It basically merges data
from multiple sources.
It takes the ADS-B data,
it takes ground radar,
it takes satellite information,
and puts it all together so the
tower can actually see all the
vehicles on the airfield along
with the aircraft.
The ARC also uses this
with a subscription called
Aerobon.
So the VMATs at LAX are
different.
We've got two different types.
We have an older version and a
newer version.
The older version is quite
interesting.
At the time that airlines and
airports started using VMAT,
there was no actual device
to put on vehicles.
They were all aircraft devices.
So what the FAA allowed
for was a modification of a
general aviation transponder.
It's the same device you would
see in a Cessna 172, just
modified for ground use.
Currently there's been an
upgrade to the system.
We now have the VTU20,
which if you see
on the slide there,
it looks a lot like a Sirius XM
antenna.
A lot different than the box
you see on the older model.
Currently out of the 104 we
have in LAX, currently 80 units
are the older type and 24 are
the newer type.
This is a breakdown
of the vehicles in LAX that
actually have VMATs installed.
41 for operations, 31
for bus ops, 21
for maintenance, and 11
for our vehicles.
Currently, 76%
of the coverage is actually
on operations and buses.
In VNYs, the same grant
that we're speaking of today,
we have the opportunity
to install VMATs
on our equipment
for the first time.
It's very rare that a general
aviation airport will have VMAT
capability.
The FAA has actually installed
Aerobon throughout the airport,
which is something we use
in the ARC, to allow
for this type of device to be
installed and have situational
awareness in the tower.
The current plan in front
of you is for eight vehicles
for airport ops, 17
for maintenance, 3 for
admin and community relations,
9 for LAFD, and 12
for airport police.
So, this item, as you can see
from an AIP grant funding, it
will provide 75% reimbursement
at LAX.
It will provide 95%
reimbursement for VNY, up
to $500,000 per airport.
So, it's a substantial grant
from that perspective.
LAWA was applied for this
funding and expect that we will
receive approval
of this request.
We're currently negotiating an
agreement relative
to the equipment provider
to actually do the procurement,
and that will be forthcoming
in the future.
So at this time we would
request adoption
of the staff report and
approval of the item and we
would be happy to answer any
additional questions you might
have about the system.
Thank you both.
Are there any speakers
on this item?
Hang on.
Any questions or comments
from the board?
Just one question.
Assuming everything gets
approved, how long before the
equipment is received and
packed?
As an example, at LAX we
already have the equipment
in place, we're just doing
upgrades,
so that's a good thing.
We're probably looking
somewhere in the range of
about six months
until we'll be able
to do the upgrade
from that perspective,
but we're trying to move that
along as quickly as possible.
But we are excited
to get this grant opportunity.
That's terrific.
Thank you.
But it's not
on every single vehicle,
obviously.
No.
And there's no move
to do that.
No.
To get the situational
awareness on a couple
of vehicles
from each department,
basically.
So, the focus on this is that we
want to get the vehicles that
physically go into what's
called the movement area.
So that is the controlled
portion of the airport.
And the concern would be if you
put them on all the vehicles,
you would have clutter all
over the screen.
So you wouldn't be able to
discern what are the important
vehicles and the ones that are
just routinely operating
in the non-movement area of the
airport.
How does it work
with the vehicles?
If there's a vehicle that,
two vehicles that are close
to each other,
are transmissions able
to do so they know they're
close to each other?
So potentially
in the future it'll be able
to do that, because there's
out and in relative
to ADS-B transmissions.
This right now,
primarily what it's going
to be able to do is make it so
the tower is able to see
exactly where every vehicle
that is critical,
that would be going out
on the movement area,
is located.
And so ultimately, you know,
if you have any type
of incursion or something
along those lines, it gives the
tower specifically more greater
awareness.
In the future,
there's the potential that we
may be able
to go ahead and do the
out and in,
which then would begin to let
vehicles and airplanes see each
other.
But that is down the road
still.
Commissioners, I would say this
is.
If you recall the tragedy in
New York recently,
they didn't have this system
on some of that equipment,
and it didn't allow the tower
to see exactly what was going
on.
There was multiple, you know,
probably factors in that
accident,
but this was one of them. And
we're well ahead of most
of our airport peers on this.
We are trying to stay further
and this is a very good move
for the airport.
And again, as Doug said, no
other general aviation airport
in the country, really, will
have the same capability that
we will have at VNY. We
are also proud that we will
make this investment at VNY,
not just at LAX.
Any other questions or comments
from the Commission?
If there are none,
could I have a motion
to approve item 11?
So moved.
Second.
Thank you, Commissioners
Velasco and Roxborough.
All those in favor, say aye.
Aye.
Any opposed?
The ayes have it.
We are now on item number 12,
Mr.
Jacob Adams.
Good morning, Vice President
Aramayo.
Good morning
Commissioners and welcome
Commissioner Daniels.
Glad to see you here.
Yeah, so I wanted to take just
a quick second and introduce
you guys to one of our
superstar LAWA engineers.
Laurel, come on up.
This is Laurel Soriano, and he
is actually the project manager
for the project that's being
considered before you today.
So, I'm going to turn it over
to him, and he's going to go
through a presentation
with you guys,
and then he's going to answer
any questions you might have.
Alright.
Good morning, Vice President
Aramayo, Commissioners.
As Jake mentioned, my name is
Laurel Suriano.
I'm the Project Manager
for the Airport Development
Program.
And today we're recommending
the award
for a three-year contract for
Sully Miller Contracting
Company.
And we're approving, waiting for
the approving of the
appropriation
of the $108,383,603 for the
Taxiway Alpha West and
Foxtrot
Reconstruction Project.
Just
to give you guys an overview of
where the project is located,
as you can see,
basically that this is located
on the south complex of the
airfield where we will be
reconstructing the Taxiway
Alpha on the west side
from Taxiway Quebec
to Taxiway Alpha 7 and
on the east side, Taxiway
Foxtrot between runway 7L25
right and 7R25 left,
including airport improvements
on the intersection of Alpha
and Foxtrot.
Now these taxiways are critical
to the cargo area operations.
And one of the challenges that
we've had is maintaining the
existence
of the existing pavement.
So, there's a basic pavement
inspection report that we
pulled.
And as you can see, majority
of taxiway Alpha, starting
from Quebec, you have colors
pink and red
that indicates that the
pavement is very poor
to serious condition,
which is continuing
to deteriorate.
So, we've taken a few field
photos, and to your right, you
can see that we have two and a
half inch wide cracks.
You can look closely, there's
like a walkie-talkie that
actually fits there.
And in the middle, we have
Taxiway Mainline, which has
longitudinal cracking, which
indicates that there's
structural failure
in the pavement.
And on the right,
you have extensive rutting,
which is caused by large
aircrafts either waiting or
entering,
exiting the cargo area.
So, something to keep you guys
in perspective is that this
pavement has not been
reconstructed from within 40
years.
So, there has been, you know,
concerns about FOD,
unsafe air traffic conditions,
and there's a risk of
incursions that occur that
maintenance has
to do ongoing performance.
So, in regards
to the project scope, we're
reconstructing the project and
it requires extended closures
for the existing taxiways.
during the construction and it
has multiple phases.
We have nighttime phases and
accelerated work areas
to mitigate any operations.
The new construction will
replace the existing asphalt
with durable concrete and we
will include reconstruction
of the taxiways and shoulders,
improve the pavement markings
and upgrade the airfield
lighting and signages and
enhance the storm grade
systems.
So we received two proposals
on March 27th, and we did the
technical evaluation and
interviews were completed in
April 13th. The bid
participation was competitive,
and it was determined that
Sully Miller Contracting
Company was the overall best
value to LAWA.
With the bids,
we were also qualified
for reimbursement
for the grants for FAA.
Now, a little bit
on inclusivity.
Now, because this project is...
federally funded, this contract
does not have a DB requirement.
However, Sully Miller
understands what it means
to LAWA and are willing to go
above and
beyond the requirements.
So, under the Workforce
Development Plan, the
contractor is committed
to these numbers.
So, you're going to engage into
outsourcing their community
services, engagement
to the elementary schools,
do summer internships, K-12
STEM outreach programs,
and continuing their mentor
protege programs.
In terms of their schedule,
so, the contractor is
to mobilize in November
of this year and then the start
of field construction will
begin in March of 2027
after the Super Bowl.
So we're going
to be completing the Taxiway
Alpha construction work
in early November and then we
get a little bit of a break
for a couple of months. So, that
way we can avoid any
of the operational impacts
during the holidays.
And then we resume construction
in January of 2028.
And that's a critical phase
for Tax-Free Foxtrot.
And then we have the remaining
construction in April.
So everything's going
to be done and completed prior
to the summer of the Olympics
in 2028.
And here I just kind
of reiterate about our request
for approval
on the appropriation for $108
million.
If you guys have any questions.
Thank you so much for the
presentation.
I just want to make sure this
construction is covered under
the project labor agreement.
Correct.
Yes, it is.
Okay.
I'll just make a note.
I appreciate that even though
this is, you know,
they're not beholden to the
workforce development quotas,
that they are adhering
to that.
So just a public appreciation
of that.
In the past, has this,
has something
like this been consistent
with only getting two bidders?
Oh in the past we usually have
between two to five bidders but
because there were, you know, so
many different work going on
these were our two bidders that
at the time bid
for this project.
I, umm,
thank you for the presentation
obviously we need that the fact
that it's been around for 40
years, speaks
for itself.
I have a math questions.
So, the motion would be
to approve an amount
of money not
to exceed basically $82
million.
Then it says the appropriation
of $108 million
for the project.
Can you explain the detail?
So, that would include, so the
$80 million that's on there is
regarding the main
construction.
So, that's the hard cost.
And then on top of that, we do
have some construction services
and some staffing support.
And then some contingency that
is included in that amount.
Okay.
But we're only approving no
more than 80 round numbers, 82
million?
82 million for the construction
contract.
All right.
I was confused by that too.
Thanks.
I thought I was reading it
differently.
I don't understand.
Oh, go ahead, Jake.
You have the same question.
Yeah.
Go ahead.
Because we're approving the
contract.
We're only requesting
appropriation
of the contract authority.
The project has its own total
cost budget.
That's the $108 million.
So today we're requesting
approval of the contract with
Sully Miller for $82 million.
Hopefully that...
That does.
Thank you. Thank you.
You're welcome.
Any other questions?
Thank you very much.
There are no further questions
or comments
could I please have a motion to
item number 12?
I'll make a motion.
Second.
Thank you, Commissioners Narro
and Roxborough.
All those in favor, say aye.
Aye.
Any opposed?
Ayes guys have it.
Item number 12 is approved.
Moving on to item number 13,
Aramayo.
Thank you.
Good morning, Commissioners,
and welcome, Commissioner
Daniels.
Looking forward to you being
on the commission.
So this board action is a
request
for capital appropriation.
This is not a contract item.
To upgrade our mission-critical
public safety infrastructure.
The systems that we are
upgrading are our access
control system, our
computer-aided police dispatch
system, and our video
management system.
And all of these systems are
essential
to protecting our passengers,
employees, our critical assets,
and airport operations.
This investment is going
to improve public safety.
It will also give us enhanced
analytics capabilities
for police to have automated
threat detection as well as
verification
of alarms so they don't have
to report and respond to all of
those alarms and it will
improve their situational
awareness.
This investment will also
reduce our cyber security risk
as much of the hardware and
software is being replaced with
the latest and greatest
technology.
This project is approved
within the 2024 capital
improvement plan.
We are using our IT master
service agreements
to implement the work.
The timeline
for the project is 18 months so
it will be completed and
in operation prior to the 2028
Olympics and Paralympic Games
and 35% of the total dollar
value will be going
to SBE firms
on those master service
agreement bench contracts.
So, the request is to approve
the capital appropriation of
$17,848,000
for this dispatch, access
control, and video management
system modernization project.
And I can answer any questions
if there are any.
Is it replacing all the ACAMs
on all the doors?
Some of those are faulty and
they go off.
So, no, this is actually
replacing our head-in system.
So, the vendor has advanced the
technology a couple versions
ahead of the version of the
platform that we're running
today.
So, we are upgrading the system
that actually controls the
controllers that then controls
all of the hardware that's
at the doors.
So, it's the brains
of the system itself.
Yes.
Questions from or comments
from the board?
Could I have a motion
to approve item number 13.
So moved.
Second.
Thank you commissioners
Velasco and La Bau.
All those in favor say aye.
Aye.
Any opposed?
The ayes have it.
Item number 13 is approved.
Thank you.
Thank you commissioners.
Moving to item number 14. Mr.
Doug Webster again.
Good morning, Vice President
Aramayo, Commissioners, CEO.
My name is Fu Tong with the
Facilities Management
Division.
I'll be speaking on this item
on behalf of Mr.
Webster.
Before you today is a request
to approve a five-year sole
source contract with Solar
Turbines Incorporated
in an amount not to exceed $16
million for the maintenance,
repair, technical support,
and overhaul services
for the two Mercury 50
Gas Turbines located
at the LX Central Utility
Plant.
Approximately $5 million of
this contract authority will be
allocated for the Beneficial
Use Service Agreement, which
includes a dedicated fleet
manager, on-site maintenance,
remote troubleshooting and
support, component replacement,
and schedule inspections and
reports.
The remaining $11 million will
be used for anticipated major
maintenance activities over the
next five years including
turbine overhauls recuperator
and replacements and major
repairs.
These two turbines are critical
components of LAX of LAWA's
energy infrastructure.
Installed in 2014 as part
of the cup replacement project,
each turbine generates
approximately 4.2 megawatts
of electricity to support the
thermal energy systems that
support cooling and heating
throughout the central terminal
area, admin east and the theme
building.
In addition to supporting cut
thermal systems, the turbines
also provide electrical power
to the CTA parking structures
2-6, airport traffic signal
systems, and lower-level
roadway lighting.
As a key component of LAWAS'
sustainability and resiliency
strategy, this cogeneration
system improves overall energy
efficiency by simultaneously
producing electricity, heating,
and cooling
from a single fuel source.
By capturing and reusing
thermal energy that would
otherwise be wasted, the cold
generation system reduces
operating costs,
lower greenhouse gas emissions,
and provides greater energy
resiliency compared to
conventional energy systems.
The result is a more efficient,
reliable, and sustainable
energy infrastructure that
supports airports' continuous
24-7 operations.
Because Solar Turbines is the
original equipment manufacturer
and has not authorized or
licensed any third party to
perform maintenance repairs or
overhauls on these turbines, a
sole source contract is
necessary
to ensure the continuous safe,
reliable,
and efficient operation of this
critical infrastructure.
Thank you and I'm available
for any questions you may have.
I have...just a question of
clarification.
I read the report.
It was, it was interesting that
it sounds
like no one else can do this.
They're the manufacturer, they
haven't authorized anyone
else. So, it sounds like into
perpetuity or certainly as long
as the cut equipment lasts.
This will be our vendor. Am I
reading that correctly?
That's correct.
You anticipate any new players
in that industry or this is it?
We are, we'll be looking at
other players that can provide
similar make and model that can
provide similar productivity
co-generation wise and we will
be seeing what's available
on the market right now.
From previous research there's
a lot of folks in this room
that have done a lot
of studies
on this previously.
There are vendors
out there are capable
of doing it.
However, there's a lot
of complexity when it comes
to swapping out the cogens.
So, obviously there's an
investment that needs
to be done and looked at.
And we have to look
at the overall cost analysis
to determine what's feasible
to be done.
And then whoever comes in,
you're in a way stuck with that
vendor or somebody equal.
Sounds like, we've got a
five-year time frame...
...next time around.
Yes, and that is where we're
having the discussion as we
speak.
We're going to be regrouping
with our Air Force
Development Group, our
environmental group,
and see what the plan
for will be.
Any other comments or questions
from the board?
Could I please have a motion
to approve item number 14?
So moved.
The second?
Second.
Thank you, Commissioners La
Bau and Narro.
All those in favor,
please say aye.
Aye.
Any opposed?
The ayes have it.
Item number 14 is approved.
Thank you.
And I'm also number 15, so I'm
sticking around.
Welcome back.
Short commute.
All right.
Item 15 is a request
to approve the second amendment
to contract DA-5660 with
Uniserve Facility Services
for RAM scrubbing, cleaning,
and sweeping services
at LAX.
This amendment will extend the
contract term by one year to
October 22, 2027, and add a
one-year renewal option and
increase the contract authority
by $3.2 million for a revised
not-to-exceed amount of $7
million.
These services are essential to
maintaining safe and reliable
airfield and RAM operations.
RAM scrubbing and sweeping are
performed
on a regular scheduled basis
to remove grease, oil, dirt,
and debris, maintain adequate
pavement surface traction for
aircraft towing and pushback
operations,
reduce slip and fall hazards
for ground operations
personnel,
and support compliance with FAA
regulations and requirements.
The current contract was
awarded in September 2023
with a not to excide amount of
$3 million and is scheduled to
expire in October 22nd, 2026.
In April 2026, the board had
previously approved a First
Amendment increasing the
contract authority by
$800,000, bringing the total
contract to $3.8 million.
However, due to ongoing
operational service
requirements, increased labor
costs,
including adjustments
associated with the city's
living wage ordinance,
and additional time required to
complete a competitive
solicitation
for accessor contract, the
remaining contract authority is
no longer sufficient
to support services
through the contract term.
The contract includes
participation goals of 15% for
small business enterprise and
2% for disabled veteran
business enterprise.
Uniserve has met these goals
achieving 18.1...I'm sorry,
15.81% participation
in subcontracting expenditures
through Facility Force
Corporation, which is certified
as both an SB and a DVBE.
While the board report
currently reflects a
participation rate of 12.4%,
the most current data available
in the B2G Now system shows
that there are 15.81%.
This amendment will provide the
necessary time and funding to
maintain uninterrupted ramp
scrubbing, cleaning, and
sweeping surfaces while staff
completes the competitive
procurement process
for a successor agreement.
If a successor contract is
awarded and executed sooner,
LAWA retains the ability to
terminate the current contract
for convenience.
Thank you, and I'm available
for any questions regarding
this item.
Quick question.
How many subcontractors are
involved?
One.
Facilities force.
When you bring
in a subcontractor, is it the
contractor's responsibility
to inform them about the living
wage ordinance and other
policies?
Is that our obligation?
That I'm not clear.
I can get back to you
on that one.
Ms.
Hopenstam?
Yes.
It is a common...
contract term
to require the contractor to
include as a mandatory
provision
in all subcontract?s information
of such items and mandatory
policies and ordinances as a
living wage.
Any other questions?
Could I please have a motion to
approve item number 15?
I make a motion.
Second.
Thank you, Commissioners Narro
and Roxborough.
All those in favor,
please say aye.
Aye.
Any opposed?
Item number 15 is approved.
Thank you.
Thank you, commissioners.
Moving on to item number 16,
Ms.
Chandler.
Good morning, commissioners.
Good morning, Vice President
Aramayo and board and
Commissioner Daniels, Welcome
and thank you
for being here and thank you
for your service.
So, I am here to request...
that you adopt the staff report
and approve the award, a
three-year contract award for...
with two additional one-year
term options to Baker Tilly
for our external audit services
for LAWA and in the amount not
to exceed 1.65 million.
Questions?
Oh, I'm sorry.
It's not a presentation.
It's an audit.
She was so fascinated by the
CSF.
Maybe I should introduce
myself, Antoinette Chandler,
CFO.
Audit is important to me.
So all good.
Just to give you guys,
I won't belabor this, but we
did run a competitive process.
We went through a thorough
evaluation and decided that
Baker Tilly was the most
qualified,
the best positioned firm
for us to continue
to work with.
And I'll just say exciting
about Baker Tilly meeting these
business enterprise goals.
So, they have some actually
subcontracted with as part
of their RFP process with
Simpson & Simpson, which is a
minority-owned firm.
So that's just fantastic,
their commitment to align
with our goals and objectives.
You all know this is mandate
by our indenture that we have
to come forward with an
external audit every year.
I will say that it's just a
reminder here that it's just
good governance and good
business practice,
good corporate governance
to have an audit every year.
So with that, I am asking
for your approval
of this contract not
to exceed $1.65 million
over the three-year term
with two one-year options.
Any questions?
Yes, I have a question.
This is a new contract
with this company, right? That
we didn't contract
with them before?
Uh, we have
contracted with them before.
They actually are an incumbent,
and they've been with us
for eight years.
Okay. Thank you.
And on that question, I'm going
to save a lot of time for
Vice Chair Aramayo
to ask questions on this.
On a serious note,
how many proposals were there
in addition?
Nine.
Yes.
So,
there were, oops, I'll go back.
I heard somebody say nine.
Nine proposals.
Okay. I missed that.
Then I agree with you
about the due diligence,
and I appreciate you commenting
on that. And they also have
expertise for the bond issuance
issue that is on the agenda
for today as well.
Correct.
Okay.
That's very important as well.
So, thank you for that.
Appreciate it.
Thank you.
Can you go
to the next slide?
Three-year base
with two-year option.
So, they'll be doing an audit
for three fiscal years?
Three fiscal years,
starting this fiscal year for
27.
Perfect.
And I would add, didn't expect
to spend this much time
on the audit, but I'm happy
to do that,
that we will be bringing
Baker Tilly forward
for audit committee next month.
So, you'll have an opportunity
to engage and get some more
clarity on the scope
of our audit for 27.
That was a side question later.
Thank you.
Okay.
Thank you.
The amount not to exceed $1.6
million includes the two
one-year options?
It includes.
That does include the two
one-year options.
Thank you.
Any other questions or
comments?
I have a new commissioner
question.
Okay.
LAX always had clean audits?
Always is a long time.
Yeah.
In the last 10 years.
Seriously, what's been LAX's
history...audits?
Well, I haven't been here for
10 years but I can tell you...
I'm just curious.
Yeah,
but I can tell you the last 5
years I know, clean audit, 10
years, clean audit.
Clean audit, but...
sometimes means corrections
encouraged by the auditor.
So I've been here 20 years,
and so during that,
I don't know if it was the last
10 years, but there have been
times when we've had audits and
recommendations,
and then we take on those
recommendations that become
part of the report.
Yeah, so when the auditors come
in, they give us a qualified
opinion, okay?
So that would be characterized
as a clean audit.
Now, with that, they do
provide,
as they're doing their audit,
any management recommendations
where there's improvement for
internal controls and the like.
They also take a look at,
so we do a single audit,
and we're required to do a
single audit whenever you take
on federal dollars.
And so, they, you know,
our process of going
through all that,
making sure that we're
in compliance there,
if they find any
recommendations to help
strengthen our compliance
process, they'll make those
recommendations.
There's a few of us
on the audit committee,
so we have a meeting
to have an exchange with the
auditors and also ask them
questions.
That is correct,
and that will be August 27th.
We'll come before you.
But any suggestions that the
auditor may make when
evaluating, I mean, that's
normal, right?
Correct.
That's part of the normal audit
process and not negating or
making it non-clean.
Yeah.
And I just want to be clear,
we can have a qualified opinion
with recommendations.
Right.
Very good.
Any other questions or
comments?
Vice President Aramayo, if I
may, I'm the one who decided
to put this
on the regular agenda.
And the reason I did it is kind
of what Commissioner
Roxborough said, that this is,
you know,
we have multiple layers of
governance and controls and
experts that help us do our
jobs.
Baker Tilly is one of the firms
that, you know, we rely
on as staff
to make sure that, you know,
we're keeping our books
properly in layman's terms and
that you rely
on as commissioners.
So, we thought it was important
to show you and have a little
discussion about this.
Not as long as we expected, but
I think it was a healthy
discussion because this is a
really important part of the
governance process that the
public expects of us.
Yep.
Thank you.
Could I have a motion
to approve item number 16?
So moved.
Thank you, Commissioners
Roxborough and La Bau.
All those in favor,
please say aye.
Aye.
Any opposed?
The ayes have it.
Thank you very much, Mr.
Chandler.
Item number 16 is approved.
Moving on to item number 17,
I'd like to invite Ms.
Chandler to say.
Thank you.
Okay, so I'll jump right
in here on our commercial paper
program.
So, we are here seeking your
approval for the replacement of
the financial institutions that
provide the liquidity facility,
letter
of credit as we call them, that
supports our commercial paper
program.
And so, when we step back and
think about the size and scope
of our...
our capital program there are a
couple of mechanisms that we
can use when we go out to
actually fund that. Our capital
program we can do short-term
borrowing and then we can do
long-term borrowing and I'm
going to be talking about just
here briefly both those
mechanisms that we use
for funding our capital
projects. In this case we have a
commercial paper program and
we're coming before you
informing you that the capacity
on that program is $500
million.
We've gone through a
competitive process.
There were five proposers that
came to us asking if they could
provide us
with this liquidity facility,
the letter of credit.
And of those,
we actually chose two.
One is an incumbent, Bank of
America.
And then the other one is a new
entrant for us in terms
of the credit facility,
which is TD Bank.
Bank of America has provided us
with $300 million
in credit facility support.
Previously, they were $100
million,
so they did step up their
commitment, $200 million,
and so we're thankful
for that, by $200 million.
And then we have TD Bank that
came in at $200 million.
to comprise the $500 million
of coverage.
One other thing that I think is
important just structure-wise
for you all to know,
we as part of our credit
facilities we had four-year
term.
This year we went out and
decided to go with a five-year
term as we're thinking about
what our funding needs will be
over the next five years.
So we just wanted to map that
accordingly and make sure we
had the right level
of capacity.
And from a cost standpoint,
that extra year, I'm going
to speak Wall Street terms,
only cost us
about two basis points.
So for the amount of credit
that they are providing to us
to extend a year,
it just made sense
to do that.
So that's why we went
with the five years.
We currently have about $390
million outstanding on that.
And when I talk about our
long-term...
the bond financing.
I'll talk
about how we're going to take
out some of this short term.
But the simple way to think
about this is when we get ready
to fund a capital project,
it's much more cost effective
for us and efficient for us to
use a commercial paper program,
like basically bridge
financing.
And then when we are ready and
the market conditions are right
for us to do so, we'll take
out that financing
and fix it out long term
over a 30-year period.
Because a commercial paper
program,
we can only issue maturities up
to 270 days, and typically we
do, we kind of roll it for
about every 60 days.
So we go out into the market
and issue those short term
instruments.
Let's see, okay.
Talked a little bit
about this, so I think I've
pretty much covered most
of this.
So we're...
here today again just seeking
your approval
of the new banks that are
coming into our liquidity
facility portfolio and then
we're also asking you for, to
approve the documents that are
associated with being able
to bring that credit facility
to close. And I'm happy to take
any questions.
Any questions
from the board? Thank you very
much.
Thank you.
I'd like to have a motion
to approve amendment, excuse
me, to approve item number
17.
I'll make a motion.
Second.
Thank you, Commissioners La
Bau and Narro.
All those in favor,
please say aye.
Aye.
Any opposed?
The ayes have it.
Item number 16 is excuse me,
17 is approved.
Thank you.
And the last item
on the agenda, item number
18.
Thank you.
Earning my keep today.
Okay, commissioners,
so we're coming
before you asking for approval
to issue $3 billion
in bonds.
not to exceed $3 billion
in bonds.
And this request is partial new
money and refunding.
And I'll explain a little bit
of that in just a second.
And then we also want to make
sure that we allow ourselves
just a little bit
of capacity when we go out
into the market,
that if conditions are really
favorable, we want
to have an opportunity
to maybe lock
in rates that are favorable
at that time.
We call that a sizing up,
if you will.
And so, we've left a little
capacity to do that.
And so, we're asking
for approval on that today.
Also want to remind you all,
let me take it back
to last month when I talked
to you about what our capital
expense needs would be
for fiscal 24.
And I mentioned
to you that it was about a $4
billion spend.
So, we're coming to you
today to ask for, again,
the approval for us to be able
to fund that
through the debt financing.
So, that's what this represents.
So, we have about, currently,
about $12 billion that's
outstanding.
And I always love to give a
statistic here just so you all
have a sense
of what that means.
So, I look at metrics
like weighted average cost
of debt.
And so, all that $12 billion is
currently outstanding that LAWA
is paying for is costing us
on average,
on a weighted average basis,
about 3.72%.
So, that's pretty good rates
to lock in
on a fixed rate basis.
You'll see here also that we
have about $400 million
in commercial paper.
And I mentioned earlier there
was a notation there about
$390 million that we'll take
out of that,
but that's outstanding.
And as part
of this financing,
we're actually going to
reimburse ourselves and take
that commercial paper line
down to zero.
So, we'll pay off the commercial
paper and basically fix that
out from short-term
to long-term financing.
You can see here,
in previous resolutions,
you all have approved $9
billion in authorization under
the '22 and '24 resolutions.
So, I just thought it was
important
to show you where we are
in terms of resolution
authority that we still have.
So, issue to date is the $3.4.
If we were to add the $3
billion onto this,
you'll see that we're
within that authority. And
again, we're just coming
to you asking for approval to
go ahead and execute and issue
those bonds next month.
When you
take out the $400 million on
commercial, where does that come
from? What money is used
to take that out?
The long-term financing.
The Long-term financing
of the $3 billion?
Of the $3 billion.
Thank you.
So that's included.
Yes.
Okay.
Before I get into the projects
that are funded,
I think it's really important
for you all to know,
and I want to acknowledge,
I think there's some folks here
from our financing team.
When we sit
down and make a decision to go
out to the market, we pulled
together a pretty comprehensive
team of folks that work
on LAWA's behalf.
And it is lawyers,
it is financial advisors, our
financial institutions or our
banking partners.
And you have lawyers
on every side of that.
We've got a bond counsel that
represents us and our best
interests and makes sure that
when we're putting these
documents together and putting
them in front
of you as a board, they have
been
thoroughly, thoroughly vetted,
right?
Because we want to make sure
that we're doing everything we
can to have the proper
disclosures when we go out to
the public markets and there's
virtually no risk of being,
not disclosing what's important
for us to disclose.
So, I just want to make sure you
understand that.
I also want to make sure you
understand that we hire a bond
counsel, we hire a disclosure
counsel, those two counsels are
coming together
making sure that these
documents are
like airtight right
before we go out
to the market.
Then we have our financial
partners,
Jefferies is our senior lead
banker underwriter along with
Goldman Sachs and then
co-managers we have Bank of
America and minority-owned firm
Siebert William Schenck.
These are folks that are
top-notch professionals
in this industry that bring
tons of airport bonds
to the market.
So, we're all working together
in concert to make sure that
LAWA is well represented,
but also protected.
Okay.
And then just lastly,
I just want to acknowledge our
financial advisor, Frasca, our
airport consultants.
When you look at these
documents and see what we call
the report of airport
consultants that supports these
financings, which is WJA. And
then, of course,
as money is changing hands, we
have a trustee who's making
sure that the money is getting
where it's supposed to back and
forth when we close the
transaction.
Okay.
So, let's talk about what this
$3 billion is going to do.
So, $2 billion of it will be
what I call new money. Okay.
And that's just a fancy term of
saying we haven't issued bonds
yet, and so we're going
out and issuing bonds
to be able
to fund these critical projects
for LAWA.
You can see here,
and I think it's important
for you all to know
particularly what these
projects represent.
So,
terminal 5 renovation and
reconstruction.
Last, I think last board
meeting, Hans came and gave you
guys a really fantastic
presentation showing you the
direction of where T5 is headed
and what that renovation and
reconstruction projects
ultimately will achieve.
So part of the bonds that we're
issuing now,
about almost a billion
of that, will go to continue
to fund that project.
Our Tibbet optimization, that
project, basically our refresh
of Tibbet.
We'll be using bonds, the bond
proceeds, I should say,
to make sure that we continue
to move that project forward.
And then we have our central
terminal area curbside.
I probably should have brought
some pictures here because I
think pictures say a thousand
words.
But making sure that we are
doing,
making those improvements.
to the functionality
of our departure curbs,
improving the canopies,
the lighting elements, and just
really bringing together a
better look and feel
for the airport.
And then also
on the arrivals,
we're upgrading crosswalks,
lighting, loading zones,
and landscaping.
And then I'll say,
on the roadway improvements,
John mentioned the ATMP.
A little bit earlier,
I actually had a chance to go
to the showcase room and see
all the great work that they've
done there.
And the roadways are going
to be amazing.
I mean, it's just going
to be a game changer, I think,
for the way people move in and
out of LAX. So very excited
about that and excited
to be a part
of raising the capital
to be able
to fund these projects.
Then we're going
to do a refunding.
And again, all included
in the $3 billion.
We've got...
When we issue bonds, we have an
opportunity when the market
presents itself
to actually refinance some
of those bonds
to achieve lower debt service,
just like a mortgage,
if you will.
You refinance your mortgage,
you get lower payments.
And so, we take advantage
of that as well.
So, we have a couple of series
in here that we've identified
that we think are really good
candidates for us to improve or
achieve some savings
in terms of the debt service
payments that we'll be making
going forward.
Those will be market dependent
day to day.
When we actually go out in
August to price the bonds, we
have a rule that if the net
present value savings or what
we can lower our payments
by doesn't achieve
at least a 3% rate,
then we have a target.
Then we won't do the deal
because it just economically
doesn't make sense for us
to do so.
So right now those bonds,
we run
in some analysis and it looks
like they're right
around the three,
three and a half percent.
But we also put in a little
conservative cushion there just
to make sure that when market
conditions change,
we got a little buffer
in there, about 50 bases
points.
But that'll be kind of market
dependent once we know better
what's happening when we go
to the market in August.
And that comprises...
the $3 billion.
I think I've talked
through most of this, but just
to again give you all another
snapshot, I think the important
point here when we think about
the capital program and the
$15 billion over the next 10
years, I just note that
over the next five years
in this period of time, 26
through 30, that we're looking
at issuing or we have project
cost expenses that are about
12 billion.
And the way we plan
to finance that 12 billion over
the next five years is broken
down on the left-hand side.
Again, we'll go out and we'll
do some debt financing.
There'll be some LAWA cash that
we have available
for capital projects.
And then we'll also have some
grant opportunities as well,
close to about 700 million.
Again,
over that five-year period.
So I always like to
characterize this as that's
our,
that's a public agency's
version
of what a capital stack is,
right?
That's how we're funding these
capital projects.
And then I'll leave you
with what that means when we go
out and we put more debt
on the books.
What does that do to our
coverage ratios and what does
that do to our cost
of employment?
So just important for you
to see that we have actually
for 27 included those costs in.
And when we spend time with our
investors and the rating
agencies, they always want to
know that we're reflecting what
we expect to issue.
And then over time, what we're
forecasting our funding needs
would be particularly
on the leverage side.
So I just want to remind you
of that.
Question on this slide.
How does it compare
to other airports?
on the cost per?
Good question.
So, I would say for 27, and I
want to be careful
about this, just in terms
of benchmarking us to say
West Coast airports and then
large hub airports, right?
So for 27, where I understand
and have looked at different
airports whether it's Chicago
or whether it's where John came
from, DFW, Atlanta, and New
York, we're right there
in the same category
with these,
with these airports.
What is, what is important
to note is that once we get
through our fifteen billion
dollar capital program where we
will land and I would say that
we would be probably
at the top
of those large hub airports.
But I want to be careful about
that because we all have
different sizes and levels of
capital programs that might
shift those costs, right?
So I just want
to be really careful
about that.
And then with this formula,
you know,
how we calculate cost per
employment, just remember the
denominator is driven
by the number
of in plane passengers,
right?
And so, that changes too.
So, sometimes it's not just an
apples to apples,
but as a large hub airport,
given the size
of our capital program,
we are actually like right
within that sweet spot,
I would say over the next for
27 and 28.
And then we start
to get a little higher as we go
out in terms of being one
of the higher large hubs.
And I'll bring,
I can follow up with,
I'd be happy to follow up with
you and show you
some comparisons because we
actually do track that.
Okay, thank you.
Other comments, questions?
Are you finished?
Pretty much.
So next steps,
I just want you all
to have a sense
of what happens after this.
So we are meeting
with the rating agencies on
Monday with the expectation
within the week or two
after that.
We will get a rating, and
certainly our expectation is
that we will continue
to be a AA-rated credit, one
of the highest in the country
for airports.
Have we always been AA-rated?
In the past, I'll say five,
ten years, yes.
But yes, yes.
Thank you.
Thank you, Marla.
Thank you.
And then we will go out.
The documents that you all will
be approving today will be
fine...
finalizing those and putting
those out to the market
for investors to review,
have some investor meetings,
and then the week
of the 18th, we will go to
New York and price the bonds.
And then close,
the expected close is
September 2nd.
So I am asking
for authorization
to issue the senior revenue and
refunding revenue bonds
for series 26 and an amount not
to exceed $3 billion and also
asking for your approval of the
financing documents as outlined
here on this on the slide.
Thank you so much for all of
your hard work and the teams.
I know that so much goes
into all of this and we
appreciate that.
So, the refunding of the older
bond. So, it's a 2.8, right?
Total 2.8, right?
Yes.
So, out of the 2.8, you said how
much was new money versus the
remainder would be the
refunding of the commercial
paper and the refunding
of the older bonds
for favorable rate?
Yeah.
So $2 billion.
is the new money, which also
includes the repayment
of the commercial paper.
And then the refunding is
somewhere around $750 million.
Okay, and those are the 2016
bonds?
2016 bonds and potentially,
if it makes sense for us
to do so, the 2019 and 2010
Build America bonds,
so the BABs bonds.
Okay, okay.
And then the authorization that
was originally given up to $9
billion,
so this is a tranche and you
may be coming back to us
for additional bond approval?
Like this is an ongoing
process?
Yes, coming back for approval
to issue more bonds and also
potentially coming back to ask
for additional authority,
right, up to the $9 billion.
So, yes, we will be back
in the spring.
Great.
Thank you.
Okay.
Also, this could be a
ticky-tacky point
of clarification,
but I think we're a combination
of a hub and O&D airport,
really,
and I think we're mostly known
for O&D,
but you're comparing us to the
hubs because we have so many
flights in and out, but
typically we're categorized as
O&D.
Yes, you are characterized as
O&D, or yes,
we are characterized as O&D,
and our O&D traffic is
about 85%. and just put it in
context.
I did mention just the
comparison across the West
Coast and I think the other
West Coast airport,
but clearly not size in terms
of employment, no comparison,
is Portland International,
which is also primarily
on the West Coast and an OND
hub and their CPE is hovering
around $30, right?
And they, LAX is two and a half
times the size.
I just wanted
to say thank you also for
noting all the numerous
professionals who are carefully
and thoughtfully been part
of the LAWA team.
That was something that was
important to some
of the board members here.
You know how hard you folks
work and your team
to put this together.
This is a large amount
of money.
I know Hans is happy about this
motion because he was here last
time.
But I just want to say thank
you for all the hard work and
due diligence that you've done
in explaining the process.
That's terrific,
and thank you.
Thank you.
Thank you for your support.
Yeah.
Any other comments or
questions?
Great.
Could I have a motion to
approve item number 18?
I will make a motion.
Second.
Thank you, Commissioners La
Bau and Roxborough.
All those in favor,
please say aye.
Aye.
Any opposed?
Thank you very much.
Thank you.
And welcome again,
Commissioner Daniel.
Before we go
into closed session,
are there any speakers
on the closed session item?
Yes, Madam Chair, we have two.
Sorry, not closed session.
Thank you.
I understand that there are
late arrivals who would want to
provide general comments.
I would like
to entertain those
before we go
into closed session, but please
be reminded that we have a
comment period for general
comments as per the order
of business listed
on the agenda.
Madam Secretary, how many
speakers are there?
We have two.
Let's please give each speaker
two minutes.
Please call the speakers up.
Could I please request the
following two speakers
to line up by the windows
in the order I call
out your name?
Mar?a Mendon and Glenda Rico.
Maria Mendon please step up to
the lectern, state your name and
your comments.
Buenos d?as, mi nombre es
Mar?a Rendon. He trabajado para
Flying Food por cerca de 20
a?os.
Yo nunca eh tenido ni un
problema con la compa?a, pues
desde, mis a?os de trabajo lo
comprueba. La compa?a nunca ha
sido mala conmigo. Es una buena
compa?a, si a m? la compa?a me
robara mi salario no estar?a ay
trabajando. En segunda, he
sufrido tanto acoso y agresi?n
por parte de los lideres
sindicales que hasta el momento
tuve que pedir mi cambio de mi
?rea de departamento porque es
demasiado la presi?n que tengo
ay por parte de los compa?eros,
y no todos,
algunos son buenos. Desde las
condiciones de mi ?rea de
trabajo pues se supone que
nosotros como trabajadores
tenemos que mantener nuestra
?rea limpia. Algunos le echan
la culpa a la compa?a, no es
culpa de la compa?a que el
departamento este sucia, es
culpa de nosotros mismos porque
los compa?eros tenemos que
limpiar nuestra ?rea. No tengo
nada m?s que decir. Muchas
gracias por atenderme. Gracias.
Thank you. Glenda Rico,
please step up to the lectern
and provide your comments. Thank
you.
Buenos d?as a
todos los presentes. Mi nombre
es Glenda Rico y trabajo en el
departamento de frutas. Llevo
24 a?os trabajando ah?.
Durante mis a?os,
es una compa?a excelente,
llena de oportunidades. Y lo
triste que estoy pues de ver
tantas cosas contrarias a la
compa?a. Si fuera mala, no
estuviera trabajando por tantos
a?os. Gracias a Dios, mis hijas
ahora se han graduado. Y le doy
gracias a la compa?a porque me
ha dado un empleo, una
estabilidad donde yo he podido
ayudar a mis hijas a estudiar y
graduarse. Y hay muchas
familias que dependemos de
ello, y no entiendo por qu?
dicen que es una mala compa?a.
A veces no queremos seguir las
reglas, reglas que tenemos que
seguir, y hay gente que no le
gusta seguir las reglas. No es
la compa?a. A veces somos
nosotros los mismos empleados
que no nos gusta seguir reglas.
Entonces no es la compa?a. La
compa?a ofrece el trabajo,
ofrece las reglas,
y dice desde un principio,
que uno se mete a trabajar, te
da el manual y te dice qu?
hacer y qu? no hacer. A veces
no nos gusta seguir las reglas,
pero la compa?a es excelente y
est? llena de oportunidades.
Gracias.
Any additional speakers?
No Madam Chair.
I'd
like to pass it over to the
City Attorney before we break
into closed session.
Just to clarify, Madam Chair,
general public comment is now
closed after being reopened.
Thank you.
Vice President Aramayo,
the board will now go
into closed session
to discuss items listed
on the closed session agenda.
We will then go back
into open session
to report back
on any actions taken
in that closed session.
Thank you.
Board has returned
from closed session.
Does the city attorney
have anything to report?
Thank you, Vice President
Aramayo.
No, there's
nothing to report
from closed session.
Thank you.
And does any commissioner wish
to request items
for future calendaring?
Did any commissioner
participate in a LAWA
related event and wish to
share information about it?
I did yesterday. I
participated in the LA
Current Affairs Forum. I was
there, and also Aaron Trapp and
Nicole Carsell were there. The
keynote speaker was
Councilmember Emeritus Paul
Krikorian, and he's educated
us,
made a very good presentation.
He's now the Executive Director
of the Office of the Mayor's
Events for the city of Los
Angeles. So, he gave us a really
great insight
about what the mayor is doing
to get ready
for and what our city is doing
to get ready for the
Olympics. Very good event.
Thank you. Any others? Our next
board meeting is scheduled
for Thursday, August 27, 2026
at 10 a.m. That completes our
business for today. This
special meeting is adjourned.