[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.