[0:03] >> Good morning.

[0:05] Welcome to the Board of Airport Commissioners special Meeting

[0:09] of August 27th 2026.

[0:12] This meeting is now in order.

[0:15] The time is 10:01 a.m.

[0:19] Please call the roll.

[0:26] [Roll call]

[0:33] >> President Johnson is absent.

[0:36] >> Good morning and welcome to the August meeting of the Board

[0:38] of Airport Commissioners.

[0:39] One of the traditions that I particularly

[0:41] appreciate before our board meetings

[0:43] is the opportunity to spend time with employees across the LAWA

[0:48] team and learn more about the work that is done every day

[0:51] and the people that is doing it.

[0:53] This morning my fellow commissioners and I

[0:55] had the pleasure of meeting members

[0:57] of our environmental planning team

[0:58] whose work helps ensure that we continue

[1:00] to transform our airports and we do so

[1:02] thoughtfully and responsibly.

[1:03] To our environmental planning colleagues

[1:07] that are here today thank you for spending time

[1:08] with us this morning and thank you for the work that you do.

[1:12] A very important work that you do on behalf of LAWA our guests

[1:16] and the communities we serve.

[1:17] Can ask that the members of the environmental Planning team

[1:20] please stand so you can be recognized?

[1:23] [Applause] When we last met in July,

[1:33] Los Angeles was nearing the conclusion

[1:36] of an extraordinary few weeks as one of the host cities

[1:40] for the FIFA World Cup games.

[1:41] With the tournament now behind us

[1:43] I want to recognize the tremendous efforts that

[1:45] went into welcoming over 5.1 million passengers in July

[1:50] from around the world and keeping our airports

[1:52] operating safely and efficiently throughout this historic event.

[1:55] What we accomplished was much more than managing a busy travel

[1:58] period.

[1:59] It demonstrated what Los Angeles is

[2:00] capable of when our airport committee works together

[2:03] toward a common goal.

[2:05] It also gave us an important opportunity

[2:08] to learn more about the preparations needed

[2:11] for what comes next.

[2:13] Last month we also marked two years

[2:16] until the 2028 Olympic and Paralympic Games.

[2:19] The World Cup gave us an opportunity

[2:21] to demonstrate our readiness on the global stage but at least 28

[2:26] will be on an entirely different scale.

[2:28] That makes the work underway our across our airports even more

[2:35] important.

[2:35] We are not simply preparing for a few weeks in 2028.

[2:38] We are making investments that will improve the airport

[2:41] experience for millions of travelers

[2:42] and benefit our region for decades to come.

[2:44] One important example of that progress

[2:51] came earlier this Month when LAWA was awarded a $289 million

[2:57] grant from the Federal Aviation Administration.

[3:00] This grant was going towards supporting ongoing construction

[3:03] of new access and roadways.

[3:04] 20% of this grant is going to be dedicated to labor costs

[3:08] covering over 556,000 work hours.

[3:11] 556,000 work hours.

[3:14] The funding will support the airfield and terminal

[3:16] modernization program roadway improvements Project

[3:19] which will separate airport traffic from local traffic

[3:23] and is expected to significantly reduce congestion

[3:27] on Sepulveda Boulevard while providing

[3:30] more efficient access to LAX.

[3:32] That's at least clap for that.

[3:35] [Applause] That this is an important investment

[3:37] not only in our infrastructure but in the experience

[3:40] that we want to provide for our travelers and the surrounding

[3:43] communities.

[3:44] It also builds upon the significant investments already

[3:46] underway to transform LAX into a more

[3:51] efficient, welcoming and distinctly Los Angeles gateway.

[3:54] I want to thank our federal partners for their support

[3:57] and everyone at the LAWA team who helps secure this funding

[4:02] and who continues to move this critical project forward.

[4:04] Last week we celebrated National Aviation Day and an opportunity

[4:07] to recognize not only the incredible role aviation plays

[4:10] in connecting people and economies around the world

[4:13] but also the people who make that possible every day.

[4:17] Across LAX and Van Nuys airports, thousands of people

[4:22] work around the clock to keep our airports moving.

[4:24] As commissioners, we have the privilege

[4:25] of seeing how much work happens behind the scenes

[4:27] to operate and transform these airports.

[4:29] I want to close by saying thank you.

[4:36] Mr. Ackerman, I now turn it over to you for your presentation.

[4:43] >> Thank you very much.

[4:44] I'm going to start with our key airport indicators.

[4:47] I'm just going to get a snapshot of different metrics

[4:50] that we track and measure our performance.

[4:53] I want to talk about satisfaction and cleanliness.

[4:56] You can see we've been making some improvement trends

[4:58] and those scores have planned lately.

[5:00] But in some cases, we're always striving for improvement

[5:03] with the intense amount of work we're

[5:05] doing with the disruptions of our construction,

[5:08] and at times its good.

[5:10] It's a meaningful accomplishment just to tread water.

[5:13] We believe the investments we're making right now

[5:15] will be manifesting themselves later.

[5:17] I want to commend the teams that are working hard

[5:20] to maintain our commitment and satisfaction scores and all

[5:23] the work that we're doing.

[5:25] Our sustainability initiatives also

[5:26] continue to produce results.

[5:27] You can see organic waste diversion has increased

[5:33] double digits year over year and we're continuing

[5:35] to grow our workforce.

[5:36] This is part of our people's first strategy

[5:38] to get properly staffed get our teams property staff so we

[5:42] can better serve our customers.

[5:43] On August 4th, Community relations team and airport

[5:46] police hosted National Night Out at the LAX exit.

[5:50] Brought together employees and law enforcement partners

[5:53] and airport stakeholders members of our community,

[6:02] and airport police cadets welcoming guests

[6:06] with food drinks and music and giveaways,

[6:09] and provided resources and importantly information

[6:12] on our key projects.

[6:12] I was able to join Councilman Tracy Park thanking our law

[6:16] enforcement personnel and our public safety

[6:18] partners for this service.

[6:19] We did it at this location because instead of just keeping

[6:23] it in general to the LAWA family,

[6:27] we got to show public around the country and around the world,

[6:34] around LA, we got to show off our law enforcement

[6:36] partners who keep us safe.

[6:38] A couple of days later, we welcomed some different team

[6:42] members and their children with Bring Your Children to Work Day.

[6:46] Children aged 6 to 17 got an insight

[6:48] to look at what makes our airports run from airport

[6:50] police, the canines, hands on activities and opportunities

[6:54] to explore and learn about careers in aviation

[6:56] that the parents are pursuing.

[6:57] I had the pleasure of welcoming kids that morning.

[7:00] It was really cool to see the excitement and the curiosity

[7:03] and we hope that we inspired a few of them

[7:06] to join our team for several years down the road.

[7:10] Earlier this month we brought together La managers

[7:13] across the airport and in this very room

[7:16] for a dedicated session that focused

[7:19] on our culture and the role that leaders and frontline

[7:22] leaders play in shaping it.

[7:24] This is also part of our broader people

[7:26] first work and taking a more intentional and measurable

[7:29] approach to defining the culture that we

[7:31] need to achieve our goals and deliver on the transformation

[7:34] that we promised.

[7:35] Our managers are critical of that effort

[7:37] because they are the link between the organizational

[7:39] values and how those values show up every day for our employees.

[7:43] Gave our managers an opportunity to help

[7:46] shape the conversation and this work

[7:47] will continue as we develop a shared cultural framework

[7:51] and more intentional about how we embed it

[7:53] and drive it through the organization.

[7:55] Last month We hosted LA SAN and LA DWP

[8:07] at our central Italy plant to begin commissioning discussions

[8:11] to a new recycled water supply from the significant long term

[8:15] effect dating all the way back to 2018

[8:17] and spanning five construction projects to build

[8:19] the infrastructure necessary to bring the water to LAX.

[8:21] We're getting closer to being equipped

[8:23] and to receive that recycled water.

[8:24] It's a great example of how partnerships across the City

[8:31] agencies driven by the administration

[8:34] are helping build a more sustainable and resilient

[8:36] airport.

[8:36] Earlier this month, the girls build LA Career

[8:41] exploration program celebrated the completion of a three week

[8:44] summer program with 78 students representing 32 Los Angeles area

[8:47] high schools.

[8:48] Students received hands on experience at LAX

[8:50] and venues toured.

[8:51] Vice President and Commissioner Laboy

[8:54] joined the girls at the commissioning ceremony,

[8:56] along with representatives from Aruba's office and education

[9:01] labor and industry partner.

[9:03] The program is primarily supported

[9:04] by the City of Los Angeles workforce Innovation

[9:06] and Opportunity Act Funding.

[9:10] LAWA's roadways, utilities and enabling route project

[9:16] has been named honors 2026 best Project in Southern California

[9:19] Aviation Transit category.

[9:20] And it may not be one of our most visible projects

[9:24] but it's been is essential to making our transformation

[9:27] possible pure support Skylink, our connection to Metro

[9:32] and many other major improvements

[9:34] across the LAX campus.

[9:35] It's been a tremendous recognition

[9:37] of years of complex work and collaboration

[9:39] by team and all of our project partners.

[9:42] I want to congratulate everyone that has played

[9:44] a role in this achievement.

[9:47] Pleased to share that we've got several recent additions

[9:51] to our leadership team.

[9:55] Aaron Trapp has been promoted to Assistant General

[9:58] manager and Chief strategy and external affairs officer.

[10:02] Aaron will be leading affairs, in our communications,

[10:06] major events and enterprise strategy.

[10:09] Dylan Petty recently joined Lawa deputy executive director

[10:12] of Capital Programs reporting -- aviation experience will help

[10:17] strengthen the planning, and deliverance of our planning

[10:21] governance.

[10:21] The Planning Commission will also

[10:23] transition to the development under Dylan's leadership

[10:26] and Jackie Grass has joined our team

[10:28] and has been appointed Deputy of Strategy innovation

[10:31] and experience reporting to Courtney.

[10:33] Will help lead our experience strategy and advance innovation

[10:36] across terminal operations and guest experience

[10:38] in public arts and strategic projects.

[10:41] Mr. Grass has decades of private sector

[10:44] experience in major operations.

[10:47] Guest experience and is going to be a welcomed addition

[10:51] to our team.

[10:52] These leadership additions are all

[10:54] about strengthening coordination and accountability across Lawa

[10:57] and ensuring that we have the right leadership structure

[10:59] and expertise in place as we manage our transportation

[11:02] to prepare for the 2020 Olympic and Paralympic Games.

[11:07] Last month we welcomed 40 new team members

[11:10] across different areas of divisions and groups.

[11:12] Thank you for the wow.

[11:15] Thanks a lot.

[11:17] If you see these folks around the airport,

[11:19] give them a warm welcome to the family.

[11:22] Thank you so much to our HR team who's worked so hard to recruit

[11:26] and attract these team members.

[11:28] This concludes my CEO update.

[11:31] I would now like to move to management report

[11:36] from miss Strap on FIFA.

[11:40] >> You talked about the culture at LAWA.

[11:44] I've been here seven years.

[11:46] I cannot say enough about the culture.

[11:49] Meaning that I represent mostly business by themselves.

[11:57] And you folks at LAWA are remarkable,

[12:03] and have been every single day.

[12:07] I talk to you guys to many of my clients

[12:08] when they complained about certain things.

[12:10] I talk about how there is a lot of people

[12:12] that talk about teamwork.

[12:13] You guys are teamwork.

[12:15] The job you guys do is remarkable.

[12:17] If you knew me better, I'm pretty critical of people's work

[12:20] habits.

[12:21] So I give that with great sincerity and appreciation.

[12:30] >> Thank you very much, commissioner.

[12:35] Mrs. Trap.

[12:39] >> Good luck.

[12:41] >> Thanks for the kind words on behalf of the whole team.

[12:43] We appreciate that, and we're working towards building

[12:46] a strong culture.

[12:47] This is my first time.

[12:53] Good morning.

[12:54] I have the great honor of leading the team and strategy

[12:56] and external affairs which includes the major event group.

[12:59] And recently hosted the FIFA World Cup

[13:01] all the way through the quarterfinals

[13:02] and had an extraordinary experience

[13:04] for the city and the team.

[13:06] I just want to highlight a few things for all of us

[13:09] as we reflect on FIFA and look forward the Olympic in 687 days.

[13:15] There was a lot of talk about in the run

[13:19] up to FIFA about whether it would be successful

[13:21] or if the hotels were going to be filled.

[13:23] The good news is that according to the host committee

[13:26] we outperformed our expectations for FIFA

[13:29] and we outperformed most of the cities who got to host.

[13:32] FIFA was comprised of 13 countries and 16 cities.

[13:38] 25 airports.

[13:38] I would venture to say that LA performed among the best if not

[13:42] the very best.

[13:43] We outperformed our projections by more than 50%

[13:47] which is pretty incredible.

[13:49] And more than half of the economic impact

[13:51] came from visitors.

[13:52] You can see where I'm going here.

[13:53] All of these people for the most part came through LAX.

[13:56] We do know that people who are international visitors

[14:00] spend an average three times what others do.

[14:03] We were thrilled overall with the results of this

[14:05] and we were also thrilled with how our airport

[14:07] and teams performed.

[14:08] I'm just going to give you a few of the highlights

[14:10] as well as some of the lessons learned.

[14:12] Eight matches and 15 teams period

[14:14] when you make a plan for something

[14:18] like this, you make it around the elements like safety

[14:22] and how teams are going to come out

[14:24] and people are going to communicate.

[14:25] What you don't want to do is disrupt mainstream travelers

[14:28] because the thing is that it's a challenge for people who

[14:30] are coming here on regular basis and we also

[14:32] want to make it feel like the World

[14:33] Cup, the magic of these types of international events.

[14:36] You build a plan for that.

[14:37] The plan doesn't survive first contact.

[14:39] So there are some lessons learned.

[14:42] We certainly performed well in many ways.

[14:45] We couldn't have done it without our partners.

[14:47] We probably have the best partners at TSA in the country

[14:50] as we've seen throughout the year.

[14:52] So from TSA to the border to homeland security,

[14:57] people worked in lockstep because there

[14:59] was so much planning amongst these partners.

[15:01] No hiccups on safety and security

[15:02] which is exactly the foundation we need to build.

[15:04] I attribute that to the team's good work and preparation.

[15:07] So we had improvements that were anticipated

[15:11] and a few that weren't I'll talk through some

[15:13] of the lessons learned with that.

[15:15] You can see the matches on the screen here and the teams

[15:19] that we moved through and ultimately 15 teams

[15:21] came through from countries around the world.

[15:24] I'll give you a peek behind the scenes.

[15:27] When I talk about the Olympics coming.

[15:29] This goes for FIFA as well.

[15:31] It's not about the people it's about the luggage.

[15:35] They have a lot.

[15:38] For FIFA -- what you see on the screen on the left is one

[15:43] team's personal bags.

[15:44] I think the team from Jordan on the right

[15:47] are the teams from Switzerland and Austria.

[15:50] You can see the types and most of the baggage

[15:53] came in in cubes which is really helpful.

[15:56] We did not find that those -- we have seen that in the Olympics

[15:59] the sheer volume of bags that come in when they're bringing

[16:02] soccer balls is not quite as impactful as it will be when

[16:05] they're bringing in canoes and pole belts and horses and things

[16:09] that are going to challenge our baggage system.

[16:12] The teams had a good plan for putting together

[16:16] the baggage handling and the overall performed

[16:18] with very few hiccups.

[16:19] We had a plan for most of the teams to arrive via charter.

[16:24] We want to keep those movements outside of the main terminal

[16:28] area if we can for security purposes

[16:30] and to make sure that we don't disrupt the main flow of.

[16:32] You can see some of the pictures here that our team had

[16:34] a great time going out on the runways

[16:36] to take some pictures with the folks.

[16:39] It was important to us that the teams

[16:42] felt the LA welcome from that moment

[16:44] and that came from our teams.

[16:45] The surface that you see went just as a chance for our teams

[16:48] to have selfies.

[16:49] It was a chance for them to feel the LA love.

[16:52] So when you lose, you go home.

[16:57] You are no longer brings you around the country.

[16:59] You typically contact your national airline and go home.

[17:02] Most of the departures came to the terminals.

[17:04] You can see our teams putting people

[17:07] through the front door of mostly Tibet.

[17:09] There's Nicole Carousel who would

[17:10] be giving this presentation but she's on a well-deserved day

[17:14] off.

[17:14] I want to recognize her work and her team it was so good.

[17:19] Making sure these front door departures largely

[17:22] didn't impact our operations.

[17:23] And it wouldn't be LA X without a red carpet.

[17:27] So our VIPs were literally treated

[17:29] to a red carpet experience in one of our graduates.

[17:32] This move was copied by airports around the country

[17:34] because it's just a good idea--

[17:37] how do you make people feel just a little?

[17:40] We talk about when we're stars, we

[17:44] talk about that feeling of arrival,

[17:46] and that's the little red carpet.

[17:48] And through our events, we talk about employees.

[17:51] This is what we're really most proud of

[17:53] and what we worked hard on.

[17:54] FIFA came and went over 28 days, rather quickly.

[17:58] We wanted to make sure that our employees really got

[18:02] to participate in that magic.

[18:03] We were able to procure just a handful of tickets

[18:06] for the actual games, but dozens of tickets for the FIFA Fan Fest

[18:12] at SoFi Stadium where people could go and watch

[18:14] games and participate with each other and cheer the teams on.

[18:18] We had almost a third of our employees

[18:20] signed up for the raffle for this, which was amazing in terms

[18:23] of participation.

[18:23] We never get that kind of participation.

[18:26] Maybe we can give some of these away for the employee survey

[18:29] and give our numbers even higher.

[18:31] We also hosted a watch party in this building

[18:34] on the fifth floor.

[18:35] We really tried to give employers a chance

[18:38] to participate in the FIFA fund, and we've

[18:40] got very good feedback on that.

[18:42] That's our chief people officer.

[18:44] Wearing one of the FIFA scarves that we gave out

[18:47] to the employees along with the soccer balls

[18:48] bringing the good vibes to the whole team.

[18:51] We have a few pictures of what that looked like.

[18:53] You have some folks in the audience,

[18:55] and you've got one of these things.

[18:56] You can give a whoop, but I won't name other names.

[19:00] But I want to recognize some of the great teams.

[19:04] You have the gems, the incidentals,

[19:07] and there's Nicole, Lieutenant Gwen.

[19:10] Just a few of the folks that made it happen.

[19:14] And finally look and feel, we were the only airport

[19:17] that would have our very own official merchandise

[19:19] store in the airport.

[19:21] That's our T7 store there, we were

[19:23] able to get some very cool activations on the garages

[19:25] and on the various buildings around campus.

[19:27] These were extremely popular for selfies.

[19:29] I hope we didn't shove anybody out

[19:31] of the way to get the picture of the countdown clock,

[19:33] but that thing was regularly populated

[19:34] with people wanting a picture with the actual countdown clock.

[19:40] Really great activation from the team.

[19:43] Largely proceeded without hiccups.

[19:45] You learn some things throughout the course of the business.

[19:48] I would say, advanced planning matters so much.

[19:52] You can plan to 100, but you're never going to get more than 90.

[19:56] And you have to be able to respond.

[19:58] The fact that we had a good plan in such good coordination

[20:00] was the partners, that's what made

[20:02] it work when we heard six hours beforehand that the team was

[20:05] going to land, that we hadn't expected.

[20:16] The team was able to rally in that case because

[20:20] of the early coordination.

[20:21] The other piece of it is the regional cooperation

[20:23] was really important to us.

[20:25] These people were going all over the community.

[20:27] Their home bases were around the city, and we had to find ways

[20:32] to make sure that people got to where they needed to be.

[20:35] This has been some months now that I presented

[20:37] on what we learned from Paris when we observed the last summer

[20:43] Olympics.

[20:44] So people flooding the zone was sort of the key lesson

[20:48] from Paris, not building a bunch of new things

[20:51] that are not needed.

[20:51] So we're a no build Olympics.

[20:53] We know that people are going to be the foundation.

[20:55] And this was absolutely born out from FIFA.

[20:58] Preparing the team and giving the team

[21:01] opportunities to understand where

[21:02] they were going to be irregular operations, giving people

[21:05] a chance to help out when people are coming in.

[21:07] Those are the things that made the difference and those are

[21:10] the things that are ultimately going

[21:11] to have to take into the Olympics

[21:13] because I say that the World Cup is 8 games over 28 days,

[21:21] and that's something that we do in major events

[21:25] because every day is a major event in Los Angeles.

[21:28] The Olympics is seven Super Bowls a day

[21:31] for 14 days of events, a little break in the Paralympic.

[21:35] It's three Super Bowls a day.

[21:40] But FIFA was a success, an even bigger success than we thought.

[21:44] Hopefully the folks felt the magic

[21:47] and didn't feel too much pain during the operation.

[21:50] >> Can I make a quick comment?

[21:51] I was lucky enough to see these landings myself,

[21:54] and the commercial ones.

[21:56] I want to take a personal note to thank you.

[21:58] Nicole worked so hard on that as well as the entire team,

[22:01] as well as our airport police and the security partners

[22:05] and it's very dicey, geopolitically

[22:07] in the news moments that required real precision.

[22:11] Kudos to the team for executing that >> Thank you

[22:19] for that recognition.

[22:20] I think Josh is here.

[22:21] Josh worked on the community relations

[22:23] team and the whole team for major events really made

[22:25] that happen.

[22:26] We appreciate that.

[22:29] >> Thank you.

[22:30] Are there any speakers on this presentation?

[22:36] >> No.

[22:38] >> Are there any comments or questions from other

[22:40] commissioners?

[22:42] >> I just wanted to echo what Courtney said,

[22:46] Commissioner Labeau.

[22:47] The fact that you put on an event at this length of time

[22:51] in an international basis and you

[22:53] don't read on the front page of the LA times, anything

[22:56] gone wrong.

[22:56] We always hear about things that go wrong.

[23:02] When you don't hear anything, most of us

[23:04] know how remarkable it is in this area.

[23:06] So you should pat yourself on the back for that.

[23:09] And on a serious note, I want you

[23:11] to talk more about the Paraguay game,

[23:13] about America we won 4 to 1.

[23:16] You should never leave that game early.

[23:18] Sometimes you see the most remarkable goals.

[23:24] >> That's right.

[23:27] No comment.

[23:29] >> Point taken.

[23:31] >> Any other comments from commissioners?

[23:33] >> Thank you very much.

[23:35] We're going to hear from Mr. Tabit on our Procurement

[23:38] and Commercial Excellence program,

[23:40] and then JP comes up to the podium.

[23:42] You're going to see a little while later

[23:45] a remarkable transformation of terminal five

[23:49] and the future of La.

[23:50] We talked a little bit about the culture that we're transforming.

[23:54] We're also looking for new ways to do work.

[23:58] We have a backlog of things that need

[24:00] to be done across all of the verticals

[24:02] that we are working on.

[24:04] We have come up with a novel way to support our team

[24:09] and make them even more effective

[24:11] and realize some of these gains for LAWA Los Angeles even

[24:18] quicker.

[24:18] Some of that is coming into fruition.

[24:20] We've been talking about it for six months.

[24:22] We're actually going to show you results today.

[24:24] Wanted to have JP give you a little bit

[24:25] of an overview of what we're doing.

[24:27] We'll have more of this to come in the coming months

[24:29] as we build out this program.

[24:34] >> Thank you, John.

[24:36] Vice President, Commissioners, I'm

[24:40] here to show you the first results of the Procurement

[24:42] and Commercial Excellence Program

[24:43] that we initiated at the beginning of the year.

[24:45] We have concrete results that I will be showing you today.

[24:49] The program was initially set up at the beginning

[24:53] of the year with a focus on looking on our revenue streams.

[25:01] Not so much on the procurement policies

[25:02] but mostly revenue streams and to benchmark

[25:05] against peers and industry and market standards.

[25:08] After a brief diagnostic period, we went into the implementation

[25:13] and we have identified approximately 50 opportunities.

[25:19] Of those 50 opportunities, I'm here today talking about 16

[25:26] concrete-- two I will not touch upon now,

[25:36] but they will be presented next board meeting in September

[25:38] because we are under contract discussions.

[25:42] The 16 that we're bringing to you today

[25:46] we're bringing additional annual revenue increase of 12.4 million

[25:54] per annum.

[25:56] This will just bring us up to market standards.

[26:00] I need to reiterate that we're coming back to market standards

[26:03] and we are not becoming expensive, for certain people

[26:10] may do.

[26:10] Within the next day and the next session in September

[26:14] we will be introducing to you approximately 20 million

[26:16] in additional revenue per annum.

[26:19] So this all started out at the beginning of the year.

[26:22] We are in the process of evaluating a property management

[26:26] system.

[26:27] We're putting all of the data together

[26:28] in accumulating all the data to get ready

[26:30] for the implementation.

[26:31] And as part of that data, we looked at every single agreement

[26:35] that we have in place with airlines or other third parties.

[26:42] Better plan our future as we go to do RFPs or negotiations,

[26:51] that's it obvious that 17 of these agreements

[26:54] had been on hold over for a number of years

[27:01] for several reasons.

[27:06] Over the backlog, the cargo monetization program--

[27:11] COVID backlog.

[27:14] So what we did is we took a look at the deeper dive

[27:16] into those holdovers and see what

[27:17] was done in the last years, what are the contractual provisions?

[27:21] And in April we came to the board for approval

[27:23] for the ground rents, this is where we now

[27:25] started looking at the building rents that have not been adapted

[27:29] for not only the past four years,

[27:32] but also for a period prior to the agreements expiring.

[27:37] So I went to market and we benchmarked against peers as I

[27:41] mentioned earlier -- this is where we started defining

[27:55] the course of action for those holdover.

[27:59] Keeping in mind that we have to evaluate and maintain

[28:03] operation continuity as we look at the overall picture.

[28:07] We are in the process of modernizing all of our assets,

[28:17] be it terminals, be it cargo, real estate, access roads.

[28:26] And to maintain efficiency, we suggested

[28:28] that we will continue to do as we analyze

[28:30] what is our best way forward.

[28:34] To give these agreements an interim space for a period

[28:38] of two years, one plus one.

[28:42] That will allow us to think on the bigger and longer picture.

[28:47] Our aim is to improve efficiency and productivity, specifically

[28:54] within the critical areas because we're so constrained

[28:56] in terms of space.

[28:57] And potential growth in terms of opportunities.

[29:01] That said, We renegotiated the agreements.

[29:06] And as you can see here, Just these 16 or 17

[29:14] would have generated the baseline revenue of 47 million,

[29:17] now we anticipate an increase over 24.8 over two years.

[29:21] When I come back to what I said earlier,

[29:23] 12.4 annual increase in the range of building

[29:26] grants from 35 to 45.

[29:32] Renting started prior negotiations

[29:33] with certain carriers and other third parties.

[29:37] The reason for one plus one is we

[29:41] are in the process of developing our long term real estate

[29:44] strategy.

[29:45] It is also mentioned in a prior board session,

[29:49] we are still in the discussions on the overall organization

[29:52] program.

[29:53] As these develop, we maintain flexibility and continuity

[29:58] and ensure that everyone is operating here at LAWA

[30:04] has a valid agreement.

[30:08] With that said, Just a brief introduction to cargo.

[30:14] Cargo has been declining since COVID.

[30:16] We're in a good path of growth again.

[30:18] We'll be discussing on how we discuss with the incumbents

[30:21] that we're talking about here and others that

[30:23] have non-expired leases and how to improve

[30:27] through the introduction of technology and other means

[30:33] to improve utilization per square foot, which means that we

[30:38] will be evaluating the contractual arrangements

[30:41] that we will have with those entities.

[30:44] So give them potentially longer term

[30:48] to be able to depreciate over a longer period of time.

[30:53] Thank you for your time.

[31:00] >> I have a question.

[31:01] We're going to ask if there's any comments

[31:02] for this presentation?

[31:06] >> No.

[31:07] >> We'll open it up for commissioner comments

[31:07] or questions.

[31:07] >> Sorry to jump ahead.

[31:10] Thank you for the presentation.

[31:12] Very interesting and I love the direction we're going in.

[31:14] When you are thinking about projecting cargo growth

[31:16] for the future, what are the things

[31:18] that you are taking into consideration for projecting

[31:20] that growth, since we've kind of been on a downturn since COVID?

[31:29] Give me an idea of things you're thinking about

[31:31] for projecting cargo growth.

[31:32] >> We're looking at multiple aspects.

[31:37] We're looking to see the reason why there have

[31:39] been potential loss of cargo.

[31:43] The market has been potentially growing.

[31:45] We have not invested in a period of 25 years in cargo facilities.

[31:48] That could be one of the aspects.

[31:50] We are looking at overall GDP.

[31:53] We have seen from COVID and beyond,

[31:56] we had some geopolitical concerns.

[31:58] So traffic from Asia has dropped.

[32:04] We are the main gateway from Asia.

[32:05] As part of our air service development,

[32:06] we're now going back to market looking

[32:08] at how we can improve discussions and negotiations

[32:11] with potential partners from Asia and bring back the traffic.

[32:16] As we develop our cargo facilities and our sequel

[32:21] process that has been started, we

[32:24] aim to provide state of the art facilities

[32:26] that will help increase our competitiveness with respect

[32:31] to other airports.

[32:35] >> I have a question.

[32:38] The infrastructure plan for the cargo modernization,

[32:41] you're going to come back to us with that?

[32:43] Do you submit a timeline for that?

[32:46] >> Correct.

[32:47] Back in April, we said we're going

[32:49] to have a six by six in terms of the first six months

[32:51] will be to evaluate and agree on the technical, mechanical side

[32:57] concerns and get those over the hurdles.

[33:02] Then starting contractual negotiations.

[33:06] End of the year will be a pivot point

[33:09] where we may need a decision or not.

[33:12] Ultimately, the target is to come to you

[33:14] in April of next year latest.

[33:17] >> That was a one year extension?

[33:22] >> What percentage of revenue is generated by cargo?

[33:27] >> I have to get back to you on that.

[33:30] I don't have the number on top of my head,

[33:32] but our greatest revenue generators

[33:33] would be the parking, commercial and advertising.

[33:38] We don't see cargo as a big revenue generator.

[33:42] We see it as a support service to attract airlines.

[33:47] It is a service that we need to have,

[33:50] and we need to provide because sometimes the belly

[33:53] cargo in passenger airlines can pivot from not making money

[34:00] to making money on certain routes.

[34:03] >> I'd be interested you comparing LAWA to the other US

[34:14] airports, how we match up.

[34:18] There is a business opportunity.

[34:19] >> Definitely a business opportunity.

[34:22] Number two in the country for cargo if you don't consider,

[34:33] DHL, Fedex.

[34:34] And we've been talking to some of our integrators

[34:36] who show commitment and want to grow within our footprint.

[34:39] We are very competitive, we would like

[34:42] to regain some lost ground.

[34:44] >> This has been an area where lax for various reasons over

[34:47] the years hasn't really invested in this business.

[34:50] We've not had dedicated staff whatsoever dedicated

[34:53] to this business until recently.

[34:55] It's going to take some time for us

[34:57] to convince our customers that we are diligently

[35:01] investing, that we're going to be here for their future.

[35:05] The geographic location we have here,

[35:08] and the other competitive advantage we

[35:10] have here is massive.

[35:11] You can see that we can easily lose the advantage

[35:13] if we don't continue to invest.

[35:16] We reversing decades and trends of lax,

[35:20] and just assuming we're lax and the business will come to us,

[35:24] we can see from the chart that that has changed.

[35:26] Now we are changing our behavior to get ahead of it

[35:31] and be proactive, invest in the business

[35:34] and go out and attract the business

[35:34] and pull that business in here.

[35:34] We know it can be done.

[35:36] Other airports have done it to us over the last several years.

[35:38] We know the playbook.

[35:40] We just have to get after it.

[35:43] >> This is not so much related to cargo,

[35:50] but LAX's inability to get employment numbers up

[35:54] to pre-COVID periods.

[35:55] I'm listening to the cargo presentation,

[35:59] I looked at the charts relative to recovery

[36:02] from COVID as far as employment.

[36:08] I'm wondering, do you have any ideas or thoughts

[36:11] about why L.A. Compared to other airports is not rebounding?

[36:19] >> We hadn't planned on talking about it today.

[36:21] But I will propose-- and we have talked about it in the past,

[36:26] and it's a lengthy discussion.

[36:27] But I would recommend is that if we can come back

[36:29] with a specific air service presentation

[36:31] to give you a Fuller report.

[36:38] >> That's fine.

[36:40] >> I want to thank J.P. And your team for this it's a huge

[36:40] and important undertaking, bring it up to market standards all

[36:43] of these in the area and your short time with us,

[36:47] ten months at LAWA.

[36:51] Congratulations, thank you for the information.

[36:53] Let's keep it moving.

[36:53] Are there any other comments or questions?

[36:57] >> Just one comment.

[36:59] I also want to stress that we're working

[37:02] very hard to improve LAWA.

[37:06] Everything that we're doing in this space program

[37:08] can be done throughout the rest of the city.

[37:11] And I've already discussed with Mayor Bass and her staff

[37:13] how other parts of the city can do this.

[37:15] The mayor's already directing us to share this

[37:17] with other parts of the city.

[37:18] We've already started having those meetings.

[37:20] So our hope is that these things that we're learning here,

[37:23] that we're shifting the risk to the private sector

[37:25] can be pushed throughout the city

[37:27] and can benefit all of Los Angeles, and not just LAWA,

[37:33] the mayor is pushing that with their senior staff.

[37:35] >> Generating the revenue reminds me of the landing fees

[37:38] of Van Nuys and how we're investing,

[37:40] we've heard earlier in the morning during the reception

[37:42] by the environmental planning team how we're continuing

[37:44] to invest those dollars to improve passenger experience

[37:46] and experiences for our customers.

[37:53] >> Well said.

[37:53] We don't get any Los Angeles tax revenue.

[37:55] We put money in the general fund.

[37:56] We rely on the money.

[37:58] We can earn the money and we can borrow.

[37:59] And we have the opportunity to generate tens of millions

[38:03] of dollars of more revenue, that's more jobs, more

[38:16] Buildings we can build.

[38:17] More terminals we can.

[38:18] All that revenue we can use, we don't return money

[38:22] to shareholders.

[38:22] We don't pay dividends.

[38:24] Our dividends get back to-- we're

[38:29] going to do better at negotiating

[38:31] with some of our partners and rationalizing our costs.

[38:39] >> It's just good business, too.

[38:41] >> If there are no other comments or questions,

[38:43] the comment period for this and all presentations is now closed.

[38:46] Moving on to general public comments.

[38:50] Are there any speakers on non-agenda items?

[38:58] >> Yes, we do.

[39:00] >> General public comments must be related to Los Angeles world

[39:02] airports business.

[39:03] Please call the speakers.

[39:05] >> Thank you.

[39:06] Please line up at the windows in the order your name is called.

[39:12] Wait until your name is called again before proceeding.

[39:14] Thank you.

[39:17] Arun Ramakrishna, Sabirna Hernandez, Maria Ponce,

[39:30] Sonia Cerrone. --

[39:36] Sabrina Hernandez.

[39:42] Please line up at the windows in the order your name is called.

[39:48] Wait until your name is called again before proceeding.

[39:51] Please step forward, Arun.

[39:59] Speak directly into the microphone state your name

[40:02] and begin your comments.

[40:03] >> Hello members of the board my name is Arun Ramakrishna.

[40:06] I am a representative of Unite Here local 11.

[40:09] We want to alert the board to the use of temporary workers

[40:12] at airport lounges at LAX.

[40:14] We have seen instawork workers using multiple Sodexo operator

[40:18] lounges where Sodexo could have instead hired permanent airport

[40:21] employees.

[40:22] We have serious concerns about how

[40:23] these workers are being paid.

[40:28] Recently installed work workers at the Qantas Lounge

[40:30] were paid as little as $24.75 without employers

[40:33] provided health insurance or a health care stipend of any kind.

[40:37] We have seen in-store job postings for Seresto--

[40:46] advertising wages as low as $18 per hour

[40:47] or below the lax living wage.

[40:49] Is the workers also faced lawsuits

[40:50] in California and other contexts alleging

[40:52] that workers were misclassified as independent contractors.

[40:55] We are equally concerned about airport access.

[40:57] We understand that airlines can provide temporary or day pass

[41:01] access that allows workers into secure areas

[41:03] without completing their normal permanent processes.

[41:07] We are concerned that this process

[41:09] may be overused to maintain a revolving temporary workforce

[41:12] rather than hiring permanent employees who

[41:14] complete the normal background check and badging requirements.

[41:16] We're asking the board to investigate both issues.

[41:19] Our temporary workers at LAX being

[41:21] paid the wages required by law?

[41:23] And our temporary access procedures

[41:25] being used appropriately?

[41:27] We've seen these practices in the Sodexo and other Sodexo

[41:30] lounges.

[41:32] We believe LAWA should act before using

[41:37] Instawork or other temporary staffing platforms.

[41:42] >> Thank you.

[41:44] Sabrina Hernandez.

[41:56] >> You can come back.

[41:58] >> Maria Ponce.

[42:01] >>

[42:04] [Speaking Spanish]

[43:32] [Applause]

[43:34] >> Sonia Cerron.

[43:44] >>

[43:45] [Speaking Spanish]

[45:19] >> Thank you.

[45:20] Before I call Sabrina, will the next set of speakers please

[45:30] line up at the window in the order their name is called.

[45:32] Wait till your name is called again before proceeding.

[45:35] That would be Lesley Meza, Jeremy Lazy, Ed Murza--

[45:56] Sabrina Hernandez, please step up to the lectern.

[45:59] >> Hello, members of LAWA.

[46:02] My name is Sabrina and I work at Qantas Lounge at LAX.

[46:04] I am a member of the union here local 11.

[46:13] I'm here because Sodexo is not paying us accordingly

[46:15] with the lax living wage or overtime.

[46:17] Vacation hours and holidays.

[46:19] Many of us do not receive health care through Sodexo

[46:22] because of company's health plan is too expensive.

[46:26] As workers we did not receive qualifying health,

[46:33] we are entitled to full cash wage

[46:37] with currently 3265 per hour.

[46:44] Sodexo is using the full 32.65 rate

[46:48] when calculated our overtime, holidays or vacation pay.

[46:53] Instead the company is calculating and paying

[46:59] these hours using a lower range wait.

[47:01] This means workers like me are being shortchanged.

[47:06] When we work overtime and when we use

[47:09] benefits that we have earned.

[47:11] For me, it's missing money matters.

[47:16] I've worked at the airport for a while,

[47:18] being paid legal wages I am owed will help to take

[47:21] care of my family and expenses.

[47:22] Thank you.

[47:30] [Applause]

[47:32] >> Thank you.

[47:33] Next, we have Leslie Meza.

[47:38] >> Good morning my name is Leslie Meza.

[47:40] I represent workers at Flying Food Group

[47:42] through the union at local 11.

[47:44] This is our 52nd time speaking to you all regarding bland

[47:46] foods.

[47:47] As many of you all know, August 5th we filed another OSHA

[47:50] complaint against this company.

[47:52] Alleged unsafe conditions that include a moldy, infested dishes

[47:57] that Sonia spoke of without the appropriate protective

[48:01] equipment.

[48:02] As well as excessive restroom Supplies-- on August 7th,

[48:13] inspection from Cal OSHA informed us that he was going

[48:15] to conduct an inspection.

[48:16] So that day I could observe as it is right under the law --

[48:24] the company refused consent for the inspector

[48:26] to access the facility to inspect the conditions.

[48:28] Let me say that again.

[48:30] After workers filed a complaint, Bland Foods

[48:33] refused an inspector from Cal OSHA

[48:35] to access and conduct an inspection at the facility.

[48:39] It only allowed an inspector in four days later.

[48:42] Why would flying food group do that?

[48:44] What are they trying to hide?

[48:46] We have never heard of a company in the industry

[48:48] refusing a government agency access to inspection.

[48:51] This is the kind of thing we know

[48:53] happens in developing countries like Honduras or Haiti.

[48:55] We have never seen the inspector turn away

[48:57] at a company in La, much less with the license from the city.

[49:01] Maybe flying food group thinks they can ignore the law, just

[49:05] like it has ignored workers demand

[49:06] for safe and decent conditions.

[49:08] Enough is enough, and LAWA must say enough

[49:15] is enough to flying food group.

[49:23] For the, workers delegated to GM yesterday and HR

[49:26] today because there's no ventilation in the kitchen.

[49:30] >> Good morning.

[49:33] My name is Jeremy Blasi.

[49:35] General counsel for Unite at Local 11.

[49:36] You might recognize my name for the many letters

[49:38] that we have sent to this board regarding flying food group.

[49:40] Under Laura's rules, the burden is

[49:43] on flying food group to demonstrate the trustworthiness,

[49:47] and capacity to operate at LAX.

[49:50] In this license period, flying food group has been cited

[49:54] or found violation by five different government agencies.

[49:58] The Bureau of Contract Administration

[50:00] has found six violations of the airport's minimum wage

[50:04] at this company or its on site subcontractors

[50:07] with more violations just uncovered.

[50:09] Cal OSHA has found 12 citations against the company.

[50:17] Just to briefly mention some of those.

[50:23] In May of this year, Cal OSHA issued six citations

[50:25] against Flying Food Group.

[50:26] Four of them it deemed serious and several

[50:29] of those related to the inability of workers

[50:31] to open refrigerated rooms from the inside.

[50:35] They could be locked from the outside.

[50:38] This is an issue that was cited for previously.

[50:41] It didn't correct it, and led to a near tragedy in January.

[50:45] One last thing, there are workers here

[50:49] that aren't concerned about their jobs,

[50:51] that concern is legitimate.

[50:53] Should make the worker retention law work.

[50:59] It should tell them any caterers who

[51:01] will pick up flying food groups work

[51:04] and that they should do so soon so that the airlines have

[51:07] an opportunity for a smooth transition.

[51:17] >> Dandy Palganatan?

[51:20] How many variations of your name have you heard?

[51:22] >> It's been three years.

[51:24] And they just know me as Dandy.

[51:32] Good morning.

[51:36] Senior vice president strategic initiatives.

[51:37] I'm speaking here regarding a very urgent matter,

[51:41] and that is depending whose procurement of the Woodley

[51:44] property at Van Nuys Airport which currently is home

[51:48] to 300 of our employees.

[51:50] To be clear, a word has not yet been presented

[51:54] to the board for action.

[51:55] That is precisely why we're here today.

[51:57] The consequences of this procurement

[51:58] have not yet been publicly discussed.

[52:00] We believe it is important for the board

[52:03] to understand what is at stake before any final decision is

[52:07] presented.

[52:08] Simply put, this is not a simple lease transaction.

[52:13] The decision here could have serious consequences

[52:17] to employees.

[52:18] Airport operations, surrounding community.

[52:21] Thank you for your time.

[52:34] >> Thank you.

[52:35] Before I call the next speaker, with the next set of speakers

[52:37] please line up at the windows in the order your name is called .

[52:47] Doug Wilson, Hector Torres, and Luis Oviero. --

[53:04] forgive me if I mispronounce your name.

[53:12] >> Good morning.

[53:12] My name is Edgar.

[53:13] I'm the chief business officer.

[53:15] Clay Lacy has operated the brand new airport for 57 years.

[53:18] It is the airport's largest employer currently.

[53:20] The potential award of the Woodley property

[53:23] threatens to displace more than 300 good paying jobs

[53:27] and local jobs and a major FAA approved aircraft maintenance

[53:32] operation.

[53:33] No public transition, alternate facility,

[53:40] retention requirements, or reemployment assistance

[53:42] has been discussed or identified.

[53:45] The consequences would extend beyond this company.

[53:50] Hundreds of families and critical aviation services

[53:52] and the local economy would be affected.

[53:56] We respectfully ask the board to give these human impacts

[54:02] a very careful consideration before an irreversible decision

[54:04] is made here thank you.

[54:16] >> Doug Wilson.

[54:21] >> Good morning my name is Doug Wilson.

[54:23] I'm the head of Fbos for Clay Lacy aviation.

[54:24] My colleagues have described what is at stake.

[54:26] I'd like to address why we believe

[54:29] basic fairness and greater transparency is needed.

[54:32] The draft lease and Environmental information

[54:35] released was released after the deadline for proposed questions.

[54:44] Four months into the RFP process,

[54:46] only three days before proposals were due,

[54:53] LAWA prohibited commercial operations at the leasehold.

[54:57] That Part of few operators like Clay Lacy aviation

[54:59] to make substantial last minute changes while not similarly

[55:02] affecting FBO proposals with whom LAWA it's now negotiating.

[55:12] When LAWA announced his intent to award the property

[55:14] we immediately requested access to the proposal scoring,

[55:16] and evaluation.

[55:18] LAWA strangely retracted the award

[55:20] without a clear explanation while continuing to negotiate

[55:22] exclusively with one proposer.

[55:24] Thank you.

[55:33] >> Doc Cutchel.

[55:36] >> Good morning.

[55:37] My name is Scott.

[55:37] I'm president of real estate with Clay Lacy.

[55:39] You've now heard the consequences and concerns

[55:42] regarding this procurement.

[55:43] I would like to close with a simple request.

[55:47] Please pause any award or lease execution

[55:51] until three things occur.

[55:54] First, have release the complete proposals, evaluation materials

[56:01] and relevant correspondence.

[56:03] Second, allow sufficient time for meaningful public review

[56:09] and consideration of these materials.

[56:11] And third, require a credible plan

[56:15] addressing the more than 300 employees whose

[56:18] jobs are at risk along with the specialized maintenance

[56:21] capabilities that we provide at the airport that will be lost.

[56:26] This is not a request for special treatment.

[56:32] It is a request for transparency, responsible

[56:37] airport stewardship, proper consideration

[56:38] of good jobs, proven operational experience, and a long term 57

[56:43] year community partnership.

[56:45] Please pause this process, release the documents

[56:49] and allow public review.

[56:50] Thank you.

[57:02] >> Héctor Torres.

[57:05] >> Good morning, members.

[57:10] My name is Hector Torres.

[57:12] I've been employed by Clay Lacy.

[57:13] I've been with the company over ten years.

[57:20] It's been a good place to work at.

[57:21] I've been at Van Nuys Airport most of my career.

[57:24] I believe due to a RFP process, the lack

[57:27] of transparency and fairness of more than 300 good paying jobs

[57:31] are at imminent risk.

[57:33] But no transition plan in place for the affected employees

[57:36] and their families.

[57:37] The ongoing Los Angeles-- threatens

[57:45] to displace Clay Lacy's aviation, airports largest

[57:47] employer and 57 incumbent, and eliminate Van Nuys more

[57:55] significant FAA approved aircraft maintenance operations,

[57:57] where over 1500 aircraft currently

[58:01] receive maintenance services.

[58:02] I'm here today because more than 300 local jobs like mine at Van

[58:06] Nuys Airport are at risk.

[58:08] I respectfully urge the board to pause any final awards,

[58:17] and please disclose the scoring process and documents

[58:19] and prioritize the protection of over 300 local jobs.

[58:21] Thank you for your time.

[58:29] >> Before I call the next speaker,

[58:31] will the next set of speakers please line up at the windows

[58:33] in the order your name is called?

[58:44] [Reading names] Luis Oviedo.

[59:01] >> Good morning, commissioners.

[59:05] My name is Luis Oviedo.

[59:06] 37 years old, and I live in the East Hollywood

[59:06] area of Los Angeles with my wife and two children.

[59:08] I've been in the aviation industry for about 14 years now

[59:11] and I've been with Glaze Aviation as five years

[59:16] as a maintenance planner for our maintenance department.

[59:19] During this time, I have continued

[59:21] to grow professionally, take new responsibilities in advance

[59:24] in my career.

[59:25] I take pride in the work we do.

[59:27] I look forward to continuing my career with Clay Lacy aviation.

[59:33] Last year clay Lacy awarded me with a scholarship

[59:37] to continue my education.

[59:38] This opportunity has allowed me to pursue my goals

[59:39] and invest in my future.

[59:41] This reflects the company's commitment to supporting its

[59:45] employees .

[59:48] I'm here today because more than 300 jobs including mine

[59:53] at Van Nuys Airport is at risk.

[59:54] These jobs represent families and members of our community

[59:57] who depend on them.

[59:58] I respectfully ask the board to pause any final decisions

[1:00:02] and carefully consider the impact that this action could

[1:00:05] have on more than 300 employees, and families

[1:00:08] who might be affected.

[1:00:09] Thank you for your time.

[1:00:19] >> Thank you.

[1:00:22] Bills.

[1:00:28] >> Good morning.

[1:00:29] My name is Steve.

[1:00:30] I'm a business representative with Iodbc local 18.

[1:00:31] Here on behalf of the highly skilled workers

[1:00:33] testing the APM system at.

[1:00:34] We have come before this body in multiple occasions

[1:00:36] to sound the alarm about Lynx and Alstom's violation

[1:00:40] of the LA, which have denied our workers the community,

[1:00:43] and we say middle class?

[1:00:46] Sustaining wages in high quality health care

[1:00:49] guaranteed by that agreement.

[1:00:51] Your contract with Lynx requires compliance with the LA.

[1:00:54] An obligation that has been completely ignored

[1:00:58] by Austin and Lynx.

[1:00:59] It is not just the Union saying this.

[1:01:01] The LA arbitrator over six months ago

[1:01:04] ordered them to pay up.

[1:01:08] Not only are they refusing comply,

[1:01:15] but they both sued the union to invalidate

[1:01:17] the results of the bargain for arbitration process.

[1:01:19] This mistreatment of workers is endangering the completion

[1:01:22] of this project, workers with years

[1:01:23] of experience on this train are leaving

[1:01:25] for better paying benefits.

[1:01:26] That project expertise is gone and it's not coming back.

[1:01:30] It's only going to get worse.

[1:01:33] Not to mention that when your guests are actually

[1:01:35] riding the train as Lynx and Alstom

[1:01:40] continue to shortchange the workers.

[1:01:46] Does LAWA intend to by and do while Lynx

[1:01:49] ignore these protections?

[1:01:50] If you aren't going to make Lynx pay,

[1:01:52] the city needs to pay these workers what they're owed.

[1:01:55] Thank you again.

[1:02:01] Steve Bills.

[1:02:04] >> Hi, it is an honor to be before of you today.

[1:02:10] I am so enlivened to be participating in this city's

[1:02:16] political process recently having been at a Los Angeles

[1:02:20] Department of Water and Power Board meeting which was my first

[1:02:25] and making incredible connections.

[1:02:28] And I think an impression and an effort

[1:02:35] mobilize Los Angeles to have a foundation, a strong cornerstone

[1:02:39] of a new era.

[1:02:43] I believe it was girls build you guys had a program with,

[1:02:53] and I really see the youth as a massive point of development.

[1:02:56] One thing that is super exciting,

[1:02:59] I have been connecting with Aqmd and really

[1:03:02] want to try to connect with you guys

[1:03:04] in this community over an active air pollution mitigation

[1:03:18] initiative, which I believe AQMD will most likely want

[1:03:24] to hear more about.

[1:03:26] And another one is a program that I'm

[1:03:26] proposing called Space Port Los Angeles, which

[1:03:28] can mobilize downtown LA and LAX in transportation

[1:03:32] expansion of logistics and industry in general.

[1:03:37] God bless you guys.

[1:03:38] Thank you.

[1:03:47] >> Esperanza Maciel.

[1:03:55] >>

[1:03:55] [Speaking Spanish]

[1:05:39] >> Kenya Nazario.

[1:05:46] >>

[1:05:47] [Speaking Spanish]

[1:07:17] >> Susan Gutierrez.

[1:07:24] >> My name is Suzanne Gutierrez.

[1:07:25] I'm a co-founder of Food Fighters United,

[1:07:25] and I've lived in the pocket right next to the Van Nuys

[1:07:27] airport for 23 years.

[1:07:28] In March 2026 PM Fighters United requested

[1:07:32] to be placed on the May agenda the date came with no response.

[1:07:43] Then in June after the meeting had already passed,

[1:07:45] Van Nuys manager Jacob Hague emailed us to say no.

[1:07:47] It's the board aware of this?

[1:07:49] The community has to present a mitigation wall that

[1:07:51] are significantly proven to reduce toxic fumes and ear

[1:07:54] piercing noise impacting our neighborhood,

[1:07:56] and this wall would be fully funded by the airport's tenants

[1:07:59] in exchange for a standard short term lease

[1:08:01] to amortize the expense contrary to Mr.

[1:08:04] Ackerman and Hanks, false and defamatory accusations

[1:08:06] of the tenant attempting to extend,

[1:08:08] it's the community that approached the tenant

[1:08:10] and begged for this critically needed mitigation.

[1:08:12] Instead, is pushing forward with an unvetted incomplete land

[1:08:17] swap, now rebranded as rezoning.

[1:08:20] This plan will not solve the problem.

[1:08:23] A reality that Rainbow Young from Aqmd

[1:08:26] confirmed to the Daily News, and rezoning

[1:08:28] will make it worse by increasing adverse impact on my community

[1:08:32] by moving even more transient jets directly

[1:08:34] across from our neighborhood.

[1:08:36] This is the exact opposite that Lawa falsely

[1:08:39] claims in pretending to reduce jet lag on the west side.

[1:08:43] Thank you.

[1:08:46] >> Madam chair, concludes our speakers for general comment.

[1:08:57] >> The general comment period is now closed.

[1:08:59] Are there any neighborhood council speakers today?

[1:09:07] >> No.

[1:09:08] >> Thank you.

[1:09:09] The comment period for Neighborhood Council

[1:09:11] is now closed.

[1:09:11] Moving to the approval of minutes.

[1:09:11] Could I have a motion to approve the minutes for July 9th,

[1:09:14] 2026 special meeting?

[1:09:16] >> I'll make a motion.

[1:09:23] >> Thank you, Commissioner Labeau.

[1:09:28] Commissioner Roxboro second.

[1:09:30] All those in favor please say aye.

[1:09:35] Any opposed?

[1:09:39] The ayes have it.

[1:09:42] Next on our business our consent items.

[1:09:49] Commissioners, staff requests that's

[1:09:52] the item number four regarding the lease with aircraft service

[1:09:52] International be pulled off the agenda.

[1:09:54] And please be reminded that if there

[1:09:55] are any speakers on any consent item,

[1:09:57] that item will be pulled from the consent list

[1:09:59] so that we can hear from the speakers.

[1:10:02] Are there any speakers on any of the consent items?

[1:10:05] >> Yes, item 19, and for item 38.

[1:10:14] >> Only 19.

[1:10:17] Thank you.

[1:10:19] Does any commissioner want to pull an item for discussion?

[1:10:29] With that, we have items 1 through 3, and items 5

[1:10:41] through 18, items 20 through 33.

[1:10:48] Could I have a motion to approve those consent items?

[1:10:51] >> So moved.

[1:10:56] >> Second.

[1:10:58] >> Thank you.

[1:10:59] All those in favor, please say aye.

[1:11:02] Those opposed, say no.

[1:11:04] The ayes have it.

[1:11:06] The consent items are approved.

[1:11:10] We will now go to item number 19.

[1:11:22] >> Suzanne Gutierrez.

[1:11:25] >> We will ask the presentation to take place with --

[1:11:32] >> This was pulled because there is a speaker.

[1:11:40] >> Yes, for item number 19.

[1:11:43] >> Hello.

[1:11:44] My name is Suzanne Gutierrez I'm co-founder

[1:11:47] of Young Fighters, a community advocacy group helping others

[1:11:47] with the noise and air pollution from the Van Nuys airport.

[1:11:50] Is item number 19 should have been pulled from the agenda.

[1:11:53] It is grossly irresponsible for this board

[1:11:55] to approve transfer without a report identifying what's

[1:12:00] better than years long environmental complaints

[1:12:02] associated with the lease.

[1:12:03] Those complaints come from adjacent businesses residents

[1:12:06] and even the FAA air traffic control tower personnel.

[1:12:09] And yet there's no mention of these consideration

[1:12:13] in Laura's report.

[1:12:14] Before approving Castle and Crux right to transfer the lease,

[1:12:18] this board to first identify what mitigation measures

[1:12:20] can be included in the deal.

[1:12:22] Is receiving a one time transfer with $600,000,

[1:12:27] to been provided to this board to identify how that money can

[1:12:32] be improved the property and mitigate its harm.

[1:12:34] Where is the report that identifies that Castle met all

[1:12:39] of its investment obligations?

[1:12:41] If you look back at Castle and Cook's original proposal

[1:12:43] in 2009, the mitigation barrier they

[1:12:45] proposed for the northern portion implemented.

[1:12:47] Where is the analysis of how this transfer impacts Fairfield?

[1:12:50] How this competition pricing at the airport considering this

[1:12:53] will give signature over 62% of the real estate of Van Nuys?

[1:12:57] I'm requesting that this board table this item, competition

[1:13:03] and determine what public benefit and operation

[1:13:06] protections should accompany this transfer.

[1:13:11] Thank you.

[1:13:17] >> Thank you.

[1:13:17] Are there any other speakers on this item?

[1:13:22] >> No.

[1:13:22] >> The comment period for this item is now closed.

[1:13:22] Any questions or comments from the board

[1:13:24] on this particular item?

[1:13:30] If there are no further questions or comments.

[1:13:31] Can I have a motion to approve item 19?

[1:13:39] >> Moved.

[1:13:40] >> Second.

[1:13:48] >> Second.

[1:13:50] >> Thank you, Commissioner Lebow has moved and Commissioner

[1:13:52] Roxborough has seconded all those in favor, please say aye.

[1:14:04] [Members voting] The ayes have it.

[1:14:07] Item 19 is approved.

[1:14:10] And now, we will move on to the regular agenda.

[1:14:16] Regular items.

[1:14:21] Item number 34.

[1:14:21] We will ask Mr. Christensen to step forward.

[1:14:23] >> Good morning Vice President Aramayo.

[1:14:31] I'm mike Christensen, chief airport development officer.

[1:14:34] I'm before you this morning requesting an appropriation

[1:14:36] of $300 million to fund the continuation of the design

[1:14:38] and construction of the terminal five project between now

[1:14:41] and issuance of a former guaranteed maximum price.

[1:14:45] We would like to start this presentation

[1:14:51] by providing an update on the project and some context

[1:14:54] for this request, starting with the rundown by Assistant General

[1:14:58] Manager Courtney Moore.

[1:14:59] Who is also the project manager and the principal source

[1:15:02] of Project Energy, as you will see.

[1:15:11] >> Thank you, Mike.

[1:15:12] This is the first time co-presenting on the new podium.

[1:15:13] We'll do a bit of a dance.

[1:15:13] Good morning, vice President Aramayo, Commissioner.

[1:15:14] John shared that we would be giving you a bit of an update

[1:15:16] on terminal five and we're very pleased to do so.

[1:15:19] We have been design and have had meetings daily to bring you

[1:15:23] what we're about to show you.

[1:15:24] Before we get into some of the renderings, which

[1:15:27] I know is someone's favorite part,

[1:15:28] this slide acts as a bit of an orientation for us in the work

[1:15:32] that we're doing.

[1:15:33] One of the last times that you saw it,

[1:15:36] you saw that in 2024, our overall experience rating

[1:15:41] was 3.59 from an Airports Council

[1:15:44] international perspective.

[1:15:45] Which put us last against our benchmark peers.

[1:15:48] Since then we have enacted many different initiatives.

[1:15:50] We have brought up the transformation office

[1:15:53] and showing you some of our custodial optimizations

[1:15:56] elevating our cleanliness scores faster

[1:15:57] than any of those benchmark airports.

[1:16:00] We have installed many new different technological

[1:16:02] solutions to enhance passenger processing

[1:16:05] so our international arrival and wait times

[1:16:08] decreased for about 35%.

[1:16:11] We've had a lot of new comfortable seating

[1:16:13] and new power to that city, enhancing our amenities

[1:16:15] and comfort.

[1:16:16] If you look at a lot of the quotes that

[1:16:18] are on the screen from our passengers and our Skytrax

[1:16:21] audits, you will see that to continue

[1:16:24] to move the needle much of the work

[1:16:25] rests within the capital projects.

[1:16:27] Having ambiance that is still highly variable

[1:16:30] and having a data esthetic and an esthetic

[1:16:32] that does not reflect Los Angeles.

[1:16:34] Shortly after, we shared with you

[1:16:39] the different consumer studies that

[1:16:41] understands what passengers are anticipating

[1:16:43] when they come to Los Angeles.

[1:16:44] What are those perceptions that they have of the city

[1:16:47] and how do they best tell their story.

[1:16:49] The city of thousands of stories we also

[1:16:51] share that there were too many categories of passenger

[1:16:54] perceptions for us to be able to tell just one

[1:16:57] story in our airport.

[1:16:59] You would reflect those different themes

[1:17:01] that our passengers shared.

[1:17:03] They were expecting to see when they visited the city.

[1:17:06] To do that, we have different levels of capital investment.

[1:17:09] On the slide that you'll see in front of you,

[1:17:12] we've started the work with our central terminal Area Arrivals

[1:17:16] project, introducing some color, a fresh new esthetic, new

[1:17:20] lighting around the campus, enhancing our wayfinding

[1:17:23] and making it easier for passengers

[1:17:24] to find their way to and from the connecting destinations.

[1:17:32] A couple of board meetings ago, you saw the enhancements

[1:17:35] that we were bringing to Tom Bradley International.

[1:17:35] That's Pre-security and reflecting

[1:17:35] the Hollywood esthetic and the terminal four

[1:17:38] had been in construction and we added some additional elements

[1:17:41] and sense of place as we were going

[1:17:43] through that project with our American Airlines partners.

[1:17:46] You've seen some of the terminals

[1:17:48] have not proposed enhancements.

[1:17:50] Terminal five produces a unique opportunity

[1:17:52] because it is a complete reconstruction.

[1:17:54] A complete reconstruction we shared with you

[1:17:58] really reflects the vibrancy and the energy

[1:18:00] of downtown Los Angeles.

[1:18:02] It's an opportunity for us to celebrate

[1:18:04] the urbanism the skyline and all of the vibrancy and the fun

[1:18:09] that is the city.

[1:18:10] Before we show you the rendering it's

[1:18:12] always nice to remind you where terminal five came from.

[1:18:15] Terminal five that is time 40 years ago

[1:18:18] was one of the flagship terminals that LAX had.

[1:18:20] Used to have some palm trees in their.

[1:18:23] It was branded as one of the locations of sense of place,

[1:18:26] but that was many years ago, and it has

[1:18:29] followed that data esthetic.

[1:18:30] When we have reintroduced terminal five,

[1:18:35] you will see a terminal that is the first on the west coast that

[1:18:38] is built with Skytrax five star criteria.

[1:18:40] There are only two other terminals

[1:18:42] that get to hold that designation

[1:18:44] in the country at the moment.

[1:18:45] You will have a terminal that introduces larger widebody

[1:18:49] capabilities you'll have a much more efficient terminal

[1:18:52] from its baggage handling system and its functionality you'll

[1:18:55] have modernized security lanes, yes for efficiency and security

[1:19:00] but also for the satisfaction of the officers that

[1:19:02] are working there.

[1:19:03] You'll have a terminal that has fully maximized and optimized

[1:19:05] around commercial opportunities for our business partners.

[1:19:17] You'll also have levels of service and a building

[1:19:19] that's been sized completely around circulation

[1:19:19] and how many square feet we should allocate per passenger

[1:19:19] based on their activity you'll have new levels of amenity

[1:19:22] and comfort and we wouldn't be Los Angeles

[1:19:24] if we weren't saying that you'll have new entertainment

[1:19:26] offerings.

[1:19:27] When you walk into terminal five,

[1:19:38] you'll see vaulted ceilings in a way

[1:19:40] that you'll only see in Tom Bradley.

[1:19:40] But in a way that's new to our domestic terminals.

[1:19:40] You'll be greeted by the skyline of downtown Los Angeles,

[1:19:41] of course with the mountain range in the background.

[1:19:43] When you come through security, you

[1:19:45] will see the Griffith Park Observatory reflected right here

[1:19:48] in our own Los Angeles International Airport.

[1:19:50] Complete with new shows every 15 minutes

[1:19:52] to immerse you in the city, but also

[1:19:54] for all of our business partners that are in the terminal

[1:19:57] to keep our passengers seated, wanting to eat or maybe

[1:20:00] drink a little and looking down at the shopping opportunities.

[1:20:03] All lines of sight have been maximized

[1:20:05] in this terminal for greatest commercial performance.

[1:20:07] You will come downstairs and you'll

[1:20:10] be greeted by P22, mountain lion that we pay respects to as well

[1:20:15] as with Griffith Park.

[1:20:17] Will be unveiling around the same time.

[1:20:19] And as you continue down the concourse,

[1:20:26] you'll get to enjoy Grand Central Market

[1:20:29] just like you would if you were walking down

[1:20:30] downtown Los Angeles.

[1:20:30] When you get to the end of the concourse,

[1:20:30] you're going to see a first in its kind it's a vanishing edge.

[1:20:33] Where you can see through that window

[1:20:35] right there it's nothing here you don't see jet bridges,

[1:20:38] you don't see equipment.

[1:20:39] It's positioned so you have this overlook into the runway

[1:20:42] and you see aircrafts moving.

[1:20:44] You'll get a bit of the arts district from a brewery,

[1:20:47] then you'll take the stairs up and we will not

[1:20:50] be reflecting downtown Los Angeles

[1:20:51] if we didn't do so with our own rooftop lounge,

[1:20:55] complete with entertainment offerings.

[1:20:57] And we're excited that we've been working on this design,

[1:21:01] we want to ensure that this is the right thing for LAWA

[1:21:07] from a business perspective as well, which

[1:21:11] is why we're going to invite Mike back up

[1:21:13] to share a little bit of the construction of where

[1:21:15] we are with this business deal.

[1:21:18] >> Thank you, Courtney.

[1:21:23] The project is being delivered faster than any project

[1:21:26] we have ever delivered of this type and this size,

[1:21:28] and in order to change-- we've talked about the fundamentally

[1:21:35] different Kind of terminal we're delivering,

[1:21:39] we're needing to deliver this differently.

[1:21:42] We have two active construction locations

[1:21:44] that it takes to deliver this project.

[1:21:46] The first is the terminal five site,

[1:21:49] the second is we love creating acronyms.

[1:21:51] We have an acronym we call OCR, and that's offsite construction

[1:22:03] and relocation.

[1:22:03] Those are two sites that are leaving this project.

[1:22:03] This is a view of we have these on camera

[1:22:04] and we will have some really phenomenal time lapses.

[1:22:06] We're going to be able to show you

[1:22:07] in a few years the head house site

[1:22:11] and the actual terminal five site.

[1:22:13] There's a lot of concrete going in right now

[1:22:16] and the steel is going up for the head house as we speak.

[1:22:18] Miles of utilities are being installed

[1:22:20] for every type of utility.

[1:22:21] Chilled and heated water, fire water,

[1:22:25] potable water and lots of it and electrical infrastructure

[1:22:29] going in.

[1:22:29] If you look at the bottom right, the historic tunnel

[1:22:33] is preserved.

[1:22:33] That will be part of the new terminal as well.

[1:22:36] >> We're just replacing utilities?

[1:22:44] T5 had utilities prior.

[1:22:45] These just were more modernized pieces of infrastructure?

[1:22:48] >> Newer and right sized.

[1:22:54] And modern configurations, there were

[1:22:56] a lot of utilities in there-- this

[1:22:59] was basically 70 year old utility structure

[1:23:02] that was there to begin with.

[1:23:04] Replacing it with more modern, along with being right sized.

[1:23:04] And a whole lot of it that was not

[1:23:05] there in the original stuff that was hung on the walls.

[1:23:07] It's not going to be properly covered in conduit.

[1:23:14] The first segment of the concourse

[1:23:17] that Courtney showed you that had the observatory, if you look

[1:23:20] on the right, you'll see the observatory framed out

[1:23:28] in the first OCR yard.

[1:23:37] And if anyone would like to see this,

[1:23:39] take a cruise down Westchester Parkway.

[1:23:39] We've topped out the steel on the first segment.

[1:23:39] We're doing things like pouring the concrete on some

[1:23:41] of the floors right now.

[1:23:44] And we're also starting the second and third segments

[1:23:48] as we speak.

[1:23:50] Progressive design build is a process that we're

[1:23:54] using to deliver this, and we anticipate

[1:23:57] and we are right now reaching 100% design level

[1:24:01] on our progressive design process.

[1:24:04] Guaranteed maximum pricing is anticipated

[1:24:07] to come in front of you around the end of the year.

[1:24:10] At that time, will have a lot more information

[1:24:13] to give you on what the end of this project looks like.

[1:24:16] Right now, prior to this action, we

[1:24:19] have appropriated funding on this project of 1.56 billion.

[1:24:24] The 300 million we're requesting right now

[1:24:27] would take us to 1.95 billion.

[1:24:29] This is designed to give us enough cash

[1:24:32] to run this project at current rate,

[1:24:35] and in some cases accelerating for the schedule.

[1:24:38] It will get us past the end of the year, by which time

[1:24:48] we will have the GOP in front of you for consideration.

[1:24:50] The contractor is achieving its inclusivity requirements

[1:24:54] in most categories, as you can see here.

[1:24:57] I think we are most glad to report

[1:24:59] in the middle of this table, that

[1:25:07] in excess of 40% of the workers on this project are local.

[1:25:09] This is a very cool project.

[1:25:11] It's being built for Angelenos, being built by Angelenos.

[1:25:13] We're very proud of that.

[1:25:15] We will continue to work with the contractor on the higher

[1:25:17] lacks.

[1:25:18] We need to bring that up.

[1:25:20] And also increase their placement of the sponsorships

[1:25:24] going forward.

[1:25:28] We are glad to take any questions that you

[1:25:32] would like for the both of us.

[1:25:36] >> Didn't mean to interrupt.

[1:25:45] >> I was going to ask if there are any speakers on this item.

[1:25:53] >> No.

[1:25:54] >> Commissioner questions or comments.

[1:25:55] >> Have a couple of questions.

[1:25:57] Regarding the SB LV and small Businesses

[1:25:59] enterprises, really great percentages and good goals.

[1:25:59] How are we going to make sure and monitor

[1:26:03] that there is actual participation by all

[1:26:05] of the small businesses?

[1:26:07] >> We work very closely with our responsibility unit that's now

[1:26:16] transferred over to Mike Frank.

[1:26:17] And do it on a monthly basis.

[1:26:18] And as a reminder, these are contractor requirements.

[1:26:23] If they do not meet these requirements,

[1:26:25] there are monetary fines.

[1:26:26] We will be sure that they do.

[1:26:34] They are heavily incentivized.

[1:26:37] >> We have a process in place so that if they're not actually

[1:26:41] being part of the contract, that we can hear from the small

[1:26:48] businesses?

[1:26:50] >> Yes, we do.

[1:26:51] Both were we develop groups and we meet regularly with these,

[1:26:54] and we have regular outreach with the contractors

[1:26:57] large and small.

[1:26:58] We also work on the purchasing side and get that feedback loop.

[1:27:07] Rest assured that we get calls quite often.

[1:27:12] We have a very open-- if we have partners

[1:27:16] that feel like they're not being given a fair shot on this.

[1:27:19] >> That's great.

[1:27:24] Going back to the beginning of your presentation,

[1:27:27] the ultimate GMP of 1.95 billion.

[1:27:28] What's the biggest remaining cost risk beyond that?

[1:27:32] The GMP will not be 1.9.

[1:27:34] If you approve this, will take appropriations to 1.95 billion.

[1:27:37] We're not going to know that number until December.

[1:27:40] >> That is correct.

[1:27:42] We're now in the final design which has to be converted

[1:27:45] and GMP and progressive design build is a negotiated process.

[1:27:48] And when we get out on the end of that,

[1:27:51] we have a number and that number has schedule implications

[1:27:54] and we'll bring all of that to you at that time.

[1:27:58] So Commissioner Velasco, with that explanation--

[1:28:14] >> That answers my question.

[1:28:15] >> You reference the fact that this is the fastest construction

[1:28:20] project that LAWA has ever done.

[1:28:25] >> On a terminal of anything close to this scope.

[1:28:27] >> Given that, are there certain things to watch out

[1:28:31] for as we're going through this?

[1:28:33] Is there anything that keeps you up

[1:28:33] at night given that we are on this fast track schedule?

[1:28:33] What are those?

[1:28:33] >> If you ask that question a year ago,

[1:28:43] I would have given you a long list.

[1:28:48] The list is shorter.

[1:28:50] Top of the list a year ago was procurement long lead items

[1:28:52] and things that we find in the ground.

[1:28:52] I'm happy to report that pretty much all of the long lead

[1:28:53] time items have been procured.

[1:28:55] We're out of the ground, so we've dealt with most

[1:28:58] of the things that were done they're.

[1:29:00] There's always a risk issue on whether

[1:29:02] and we're hearing a lot of things about potential

[1:29:04] whether this season again.

[1:29:05] We're up out of the ground that limited,

[1:29:07] but we continue to watch that closely.

[1:29:09] And if we see that closing in on us,

[1:29:11] we'll put measures to minimize any impact

[1:29:15] that that might incur.

[1:29:22] We continue to monitor supply chains that's always an issue.

[1:29:24] There's a lot of pressure on supply chain and steel

[1:29:24] right now.

[1:29:25] Mechanical and electrical equipment.

[1:29:26] Luckily, we got in under the wire

[1:29:29] to get in those procurement lines.

[1:29:30] We've had a few issues with steel that we're dealing with

[1:29:33] and we've been able to resequence or even pull steel

[1:29:36] off of some other projects.

[1:29:38] And at this point, that's the high risk that it's making sure

[1:29:44] the procurement cycles work as they have been designed.

[1:29:48] >> I'm sure there are contingency plans in place

[1:29:56] if there are weather issues or supply chain issues to keep us

[1:29:59] on track?

[1:30:04] >> To a certain extent, yes, depending on what the nature

[1:30:07] of the problem is.

[1:30:08] >> One thing I would add is, we're moving faster than

[1:30:12] we've ever had before.

[1:30:13] We're doing that because we need to transform this airport as

[1:30:13] quickly as we can.

[1:30:15] We believe that with the plan that Mike and Cardi have laid

[1:30:18] out in are driving, that we can actually

[1:30:20] deliver this project in 2028, depending on weather

[1:30:24] and some other factors.

[1:30:25] There's a chance we can deliver this before the Olympics.

[1:30:28] We'd obviously like to do that and show the world the next five

[1:30:31] star terminal when they come here for the Olympics.

[1:30:34] But you mentioned what keeps us up at night,

[1:30:36] with speed comes risk.

[1:30:38] So we're trying to balance speed, risk and cost and all

[1:30:41] of those things.

[1:30:42] And we have many other projects that we

[1:30:44] have to devote resources to.

[1:30:46] The team is working right now.

[1:30:48] Our ultimate goal would be to deliver a five star

[1:30:51] terminal before the Olympics.

[1:30:53] Number one goal is to deliver a five star terminal.

[1:30:55] That's what the team is driving towards right now.

[1:30:57] I think we can do it.

[1:30:59] It's tight.

[1:31:04] This is the fastest it's ever been done

[1:31:10] and we're using novel methods that

[1:31:12] are going well right >> Can I just follow up?

[1:31:17] Fastest ever.

[1:31:18] I think that's a great question.

[1:31:19] Why is this the fastest ever, aside from the two of you

[1:31:26] helping lead this?

[1:31:31] >> There are drivers of why it's moving fast,

[1:31:38] because we want it to move faster.

[1:31:39] You may want to speak on that.

[1:31:41] >> John mentioned the Olympic date,

[1:31:44] and while the ultimate goal is to deliver a five star Skytrax

[1:31:44] terminal for LAX, a lot of motivation has been to reflect

[1:31:44] our city and to bring excitement,

[1:31:44] while we have all of the visibility in time

[1:31:46] for the games.

[1:31:47] >> The direct answer is we're doing the offsite construction

[1:31:57] method.

[1:31:58] We're literally rebuilding the onsite.

[1:31:58] We're doing two things at once.

[1:31:58] We've normally done a sequence.

[1:31:58] Terminal for will ultimately take more than eight years

[1:32:00] of disruption to customers, and the inconvenience

[1:32:13] that we all hear about.

[1:32:14] That was a different delivery method.

[1:32:16] We're going to do this in three years.

[1:32:18] >> If you drive down Westchester Parkway which I highly recommend

[1:32:21] every commissioner does, you will see the structures being

[1:32:21] built right on the airfield right at Westchester Parkfield,

[1:32:21] they are massive.?

[1:32:22] Is it only the first one that's?

[1:32:25] I can't tell because at this time

[1:32:27] they're really connected to each other.

[1:32:29] It's a massive structure out there.

[1:32:30] I get these phone calls about, what the heck is going on?

[1:32:34] Terminal five is being built at Westchester Parkway,

[1:32:38] and it's going to move across the airport and connect it to.

[1:32:51] I highly recommend that you look at it.

[1:32:54] >> It's much closer unlike the previous OCR we did.

[1:32:57] They're not actually joined they're.

[1:32:57] They are much closer.

[1:32:57] >> Is it just one module?

[1:33:06] >> One has been topped off.

[1:33:08] We're working on three.

[1:33:09] >> There's excitement and enthusiasm.

[1:33:13] When you hear about the innovation, and that

[1:33:15] of other stories out there, I just

[1:33:15] think the innovation is something

[1:33:16] that we should let the public know about,

[1:33:24] because it is remarkable.

[1:33:26] I think we were told when we were doing this project, highly

[1:33:26] unlikely, and it'll be done in time for the Olympics.

[1:33:26] Now you're thinking about it, its safety

[1:33:28] and all the other features.

[1:33:30] I will say thank you, but I believe

[1:33:34] short of us driving up and down the boulevards,

[1:33:37] I think LA needs to hear about this.

[1:33:41] Because this shows what you folks are doing at LAX keeping

[1:33:56] the airport open 24/7.

[1:33:59] I think that needs to be publicized.

[1:34:01] >> And Mike has been out in the community.

[1:34:01] Making community presentations so that people

[1:34:01] know what's going on.

[1:34:02] >> I want to underscore the offset construction has enabled

[1:34:06] more access for jobs of folks that were not traditionally be

[1:34:09] required to be on the...

[1:34:26] >> Now we have a whole different class of workers that can--

[1:34:34] >> The jobs.

[1:34:34] Can you go back to the inclusivity update slide really

[1:34:35] quickly?

[1:34:36] I just want to commend the direction that LAWA is going in,

[1:34:42] when we look at different percentages.

[1:34:45] And I noticed that you highlighted in green the K-12

[1:34:45] title one Stem programs, and highly

[1:34:46] encourage continued dialog with Mark Frank and his team

[1:34:49] on programs that we have, and how we're helping

[1:34:59] to create those pipelines.

[1:35:00] Because these should also be jobs and opportunities

[1:35:00] for the future workforce and that

[1:35:00] they are able to see themselves working here and having careers

[1:35:01] here.

[1:35:02] Can you redefine for me local workers actual over 40%.

[1:35:07] What is that region include?

[1:35:09] Is it zip codes or LA County?

[1:35:12] >> I would really have to defer that to Mark Frank's team and we

[1:35:23] can get that to you or ask Mark to come up.

[1:35:29] >> Congratulations.

[1:35:30] It's going in the right direction.

[1:35:32] >> Thank you very much.

[1:35:34] One little anecdote and we will end on this slide.

[1:35:34] John witnessed that we had some conversation with trade

[1:35:34] partners working with OCR.

[1:35:34] And we learned something we hadn't learned.

[1:35:35] We're is spreading about this project among our trade partners

[1:35:37] to the point where they think this is such a cool project,

[1:35:39] that we're actually getting the cream of the crop of a lot

[1:35:41] of our trade partners because they want

[1:35:43] to work on this project they want to have

[1:35:45] their finger in this and they want

[1:35:46] to show their kids and grandkids, I did this

[1:35:50] and I worked on this.

[1:35:51] That's something we don't see often.

[1:36:02] We are really just to see that happen.

[1:36:04] >> I was out there, and I met the one who I was talking about.

[1:36:04] Met a lot of the iron workers, they're really proud

[1:36:04] and these are iron workers that have been everywhere.

[1:36:06] They go by seniority.

[1:36:07] This was the hottest project in all of Southern California

[1:36:10] because they built a point for this-- we literally

[1:36:25] have the best iron workers of all of California

[1:36:27] right here in our site.

[1:36:27] And it's not just a hyperbole.

[1:36:27] They are picking and placing steel at double the rate

[1:36:27] of the other crews.

[1:36:27] Double the rates.

[1:36:27] >> That's specifically--

[1:36:39] >> There's a superintendent or I forget the name of the position

[1:36:42] out there.

[1:36:42] The person in charge has said he's done it a few times,

[1:36:42] and they're going very quickly.

[1:36:43] >> And it's specifically for the desire for the part of the first

[1:36:52] five star terminal.

[1:36:52] >> They volunteered and fought to compete on this job

[1:36:52] by seniority because it's the coolest job in Southern

[1:36:52] California right now.

[1:36:53] >> And it also speaks to the leverage that we can have

[1:36:55] and have companies that are are going to be contracted

[1:36:57] and getting these awards and our expectations of them.

[1:37:05] I want to go back to that.

[1:37:18] >> I've got one question.

[1:37:19] Noted on the slide, there's going

[1:37:25] to be a lot of creative concessions

[1:37:26] and placement of food.

[1:37:26] One of the things I'm seeing over the years

[1:37:26] is these projects get done without the input of the people

[1:37:26] we're going to operate.

[1:37:28] It requires lots of retrofits after the fact.

[1:37:31] I do believe I was around here when Tibbitt,

[1:37:44] and I remember the process of having

[1:37:47] to invest a lot more money as a concessionaire

[1:37:49] because the input of where they wanted the consensus, at they

[1:37:54] had configured the building or somewhat aligned.

[1:37:56] I know LA will go through a competitive process,

[1:38:03] but figuring out a way to get input ahead of time

[1:38:06] because you show great slides with market and this

[1:38:11] and that, we're getting input from the people who actually

[1:38:15] have to operate might speed the process

[1:38:17] and make sure that things work more efficiently.

[1:38:25] >> We appreciate that, and to the next point,

[1:38:30] Commissioner Roxburgh's point about the drivers of how

[1:38:32] we've been moving so quickly.

[1:38:32] One of the ways we've been able to do that

[1:38:32] is resourcing this project a little differently than others.

[1:38:32] For the design, it's always difficult to design

[1:38:32] by committee.

[1:38:33] We've done so to a pretty large degree

[1:38:35] to ensure that that was the case.

[1:38:37] That we were pulling in a lot of different feedback

[1:38:39] from diverse groups.

[1:38:41] Our concessions design, we've actually

[1:38:44] had multiple designers, probably about different five firms,

[1:38:48] and our in-house design talent who has been liaising and taking

[1:38:54] feedback from concessionaires to see

[1:38:56] how we can improve and inject that into the project.

[1:38:58] You're right that right now we have

[1:38:59] an open solicitation for concessions

[1:39:01] partners for terminal five.

[1:39:02] I can't speak to it too much.

[1:39:04] We have elongated some of the timelines to do just that.

[1:39:07] We had some industry days, we had outreach days

[1:39:09] before we ever released the solicitation

[1:39:12] and we have some additional time for that.

[1:39:32] >> One last point on the inclusivity update

[1:39:34] and the requirements.

[1:39:34] I've never seen this before, but on house individual hires.

[1:39:36] So the commitment is-- it's one that I

[1:39:48] thought that is really great in a creative way

[1:39:50] to try to help people take the next level up, earn income.

[1:39:52] >> This is the first project I'm aware of that's really trying.

[1:39:57] It's particularly satisfying to know

[1:39:58] we had our first unhoused individual employed

[1:39:58] on a project.

[1:39:58] The requirement will hopefully get there

[1:39:58] because we've got a lot more tradespeople coming

[1:40:00] on board over the next year.

[1:40:03] The actual staffing is on the upswing,

[1:40:08] and it will spike next year.

[1:40:17] That was particularly satisfying to see

[1:40:18] that we're able to do that.

[1:40:25] >> Looks like Flag Metro is doing a program like that.

[1:40:27] Mr. Frank and I toured a program where they're doing that.

[1:40:27] It's something there to take lessons from.

[1:40:29] >> Thank you both.

[1:40:34] If there are no further questions or comments, a motion

[1:40:36] to approve item number 34?

[1:40:37] Thank you.

[1:40:44] Commissioner Velasco moved and Commissioner Roxborough

[1:40:47] seconded.

[1:40:47] All those in favor, say aye.

[1:40:56] [Members voting] The ayes have it.

[1:40:59] Item 34 is approved.

[1:41:01] Item 35.

[1:41:05] >> We have a short leading for you because if my memory serves

[1:41:07] me correctly, I think Commissioner Velasco

[1:41:07] and Commissioner Roxborough were the only two people here back

[1:41:08] in 2020 when the board approved this project.

[1:41:11] I thought I'd do a brief recap for you guys.

[1:41:14] This project was awarded to Skanska back in 2020,

[1:41:18] and it was done as a hybrid design build project.

[1:41:22] Its intent as CEO Ackerman mentioned,

[1:41:25] was to provide all critical structure that would connect all

[1:41:29] of the big projects together.

[1:41:32] We were able to do in this first project, 19 individual projects

[1:41:37] ranging from brand new streets, to street widening,

[1:41:40] to landscaping and major underground utility

[1:41:44] construction.

[1:41:48] We undergrounded every single power line

[1:41:57] that would serve all of the facilities of lamp.

[1:42:00] We also did some major drainage improvements, as well as

[1:42:02] some work in the central terminal area.

[1:42:02] One of the really unique aspects of this project

[1:42:02] was a provision that the board allowed

[1:42:04] us to put in, which was called the gap Project Allowance.

[1:42:07] That allowed us to give the flexibility and the nimbleness

[1:42:13] to be able to react when things came up

[1:42:15] and when there were projects that were not

[1:42:16] identified in 2020 that were absolutely critical to make

[1:42:19] happen.

[1:42:20] That gave us the flexibility to do that.

[1:42:22] We were able to do ten additional projects

[1:42:25] with that flexibility that you approved.

[1:42:29] The construction of those 29 projects

[1:42:32] finished earlier this year.

[1:42:34] So the team has been working on closing out

[1:42:38] the project and today we're ready to issue the final change

[1:42:41] order, which will completely close out of the project.

[1:42:45] The final change order covers three areas

[1:42:46] that we are wrapping up.

[1:42:47] One is compensating Skanska for some of the additional permit

[1:42:51] fees that we are experienced on the project.

[1:42:54] Compensates Skanska and their subcontractors

[1:42:57] for some of the permit delays that happened on the project.

[1:43:01] It also goes and realizes some of the credits

[1:43:04] for some of the work that was Descoped because it was either

[1:43:08] no longer needed because time had passed

[1:43:11] and wayfinding is a great example of that,

[1:43:13] and also for a project that just physically could not

[1:43:17] be constructed when we anticipated them in 2020.

[1:43:20] The total change order value is $15.7 million.

[1:43:24] The good news is completely covered by the contingency

[1:43:27] that you approved in 2020.

[1:43:29] I did want to compliment our partners comments on this.

[1:43:35] Have been an amazing partner.

[1:43:37] Just several examples.

[1:43:39] Here inclusivity performance.

[1:43:41] You can see here they far exceeded 6% on a small business.

[1:43:49] 18% on local business, local small business and additional

[1:43:53] 10%.

[1:43:54] And the one that people seem to struggle with,

[1:43:57] the disabled veterans and they were able to increase that by 2%

[1:44:00] as well.

[1:44:03] The other thing I wanted to comment on is the safety record.

[1:44:07] It's been a long time and I've been here doing this a long time

[1:44:10] it's been a long time since I've seen a project of this length.

[1:44:14] Six years where they were able to have

[1:44:17] zero last time incidents.

[1:44:20] That's a compliment to Skanska, to their safety culture,

[1:44:23] to our safety culture for helping to drive that.

[1:44:29] That was a big deal.

[1:44:30] They also put in eight graduates of our higher lacks program,

[1:44:35] which was amazing to see, giving people a high paying union jobs.

[1:44:39] That was fantastic as well.

[1:44:42] That was really glad to see that that wasn't the only person that

[1:44:47] was a great project.

[1:44:48] As CEO Ackerman mentioned, ENR it

[1:45:00] recognizes as the best project in the region for aviation

[1:45:03] and transit section.

[1:45:04] I wanted to take just one quick minute.

[1:45:06] We have a small but mighty team here in the audience today.

[1:45:16] Stand up.

[1:45:18] [Applause] And I just want to personally thank them

[1:45:20] for doing what they do every single day to make

[1:45:22] this project successful.

[1:45:28] You guys rock.

[1:45:30] Thank you.

[1:45:30] In brief, we're asking you to approve the final change order

[1:45:30] and give the CEO the authority to execute that change order

[1:45:33] and happy to answer any questions.

[1:45:36] >> Are there any speakers on this item?

[1:45:51] >> No.

[1:45:51] >> The comment period for this item is closed any questions

[1:45:52] or comments from the board?

[1:45:53] >> Thank you to the team.

[1:45:57] It's very cool.

[1:45:58] These are long projects.

[1:45:58] It's very cool to see when something comes to completion,

[1:45:58] to be able to stamp that and we appreciate your time

[1:46:00] and hard work.

[1:46:01] It does not go unseen.

[1:46:04] Had a very good question on this specific extended overhead

[1:46:08] portion, because out of the total of the 15.7,

[1:46:12] it looks like from the breakdown that almost 11

[1:46:16] is from an extended overhead.

[1:46:30] Can you talk a little bit about that?

[1:46:31] Why it was that?

[1:46:32] >> If you guys recall, and this is another silver lining.

[1:46:36] Because this is the last project that

[1:46:37] is being done under the previous MOU with our city agencies.

[1:46:38] And you're probably recall about two years ago

[1:46:41] we completely revamped that.

[1:46:42] We took all of the failures and the lessons

[1:46:45] learned for all of these projects

[1:46:47] and incorporated it into that new MoU.

[1:46:50] I have to say that has been very effective so far.

[1:46:55] Especially the way we're measuring that is

[1:46:57] on our Atmp roadways project.

[1:46:59] We're not going to see any of those permit delays

[1:47:02] that we have experienced on the Lamp program.

[1:47:06] That extended overhead is solely related

[1:47:08] to permit delays that we experienced from Bow where

[1:47:13] we did not meet the commitments of the original MOU.

[1:47:16] That is compensating thanks for being on the job

[1:47:20] a lot longer than we anticipated.

[1:47:21] There's an additional line item for the permit fees.

[1:47:36] >> There's an additional line item?

[1:47:38] >> Correct.

[1:47:40] General overhead compensates them for being here longer

[1:47:43] and having to work longer.

[1:47:43] The longer they are here, the longer

[1:47:43] BOE charges for permit fees.

[1:47:43] It's not just BOE, it's the other agencies as well.

[1:47:43] It's a factor of time, and that those permits

[1:47:45] are open longer that we have to pay more fees for those permits.

[1:47:49] >> Thank you for that.

[1:48:05] >> Briefly, best and safest.

[1:48:09] For a six year construction project

[1:48:10] to have no lost time in California.

[1:48:10] I've been doing this 35 years.

[1:48:10] Unheard of.

[1:48:10] Well done.

[1:48:10] Leadership, safety training, everything,

[1:48:13] a positive to talk about.

[1:48:15] That's highly unusual.

[1:48:16] Well done.

[1:48:19] >> The whole team and everybody be on there.

[1:48:37] >> If there are no more comments or questions,

[1:48:39] could I have a motion to approve item number 35?

[1:48:39] Commissioner Labeau moved and Commissioner Velasco seconded.

[1:48:41] All those in favor, say aye.

[1:48:53] All those opposed, say no.

[1:48:54] Item number 35 is approved.

[1:48:55] We're now on item number 36.

[1:48:55] Can I invite Doug Webster?

[1:48:55] He doesn't look like Doug Webster.

[1:48:57] >> Close resemblance.

[1:49:08] >> Good morning, Vice President Aramayo, commissioners.

[1:49:11] My name is futon with facilities manager division.

[1:49:11] I'll be filling in for Mr. Webster today.

[1:49:12] Item before you, 36, is to request

[1:49:24] to approve the First Amendment to contract DA57072

[1:49:26] with Durst LLC.

[1:49:26] The requested amendment will increase the contract authority

[1:49:26] by 2 million and extend the contract term

[1:49:27] by an additional two years.

[1:49:29] This contract provides required testing maintenance, replacement

[1:49:32] and repair services for automatic closing fire

[1:49:34] assemblies, doors and security gates, levers at LAX and Van

[1:49:39] Nuys Airport.

[1:49:40] These assets are important components

[1:49:46] of LAWA's fire and safety operational infrastructure.

[1:49:54] In particular, fire door assemblies

[1:49:55] are subject to annual inspection, testing

[1:49:56] and certification under Los Angeles Fire Department chiefs.

[1:49:59] Contractor support is needed to complete the required testing as

[1:50:03] well as prompts.

[1:50:07] The contract has almost been fully Expanded.

[1:50:11] 99% has been used.

[1:50:13] The requested amendment will provide sufficient authority

[1:50:16] and contract time to continue these critical services

[1:50:19] without interruption.

[1:50:21] And I'm available for any questions.

[1:50:26] >> Are there any speakers for this presentation?

[1:50:41] >> No.

[1:50:42] >> We will close the comment period for this presentation.

[1:50:42] Any questions or comments from the board?

[1:50:42] If there are no further questions or comments

[1:50:44] I have a motion to approve item number 36?

[1:50:58] >> So moved.,

[1:50:59] >> Second.

[1:51:02] >> All those in favor, say aye.

[1:51:07] Those opposed, say no.

[1:51:11] [Members voting] The ayes have it.

[1:51:14] Item number 36 is approved.

[1:51:20] Item 37.

[1:51:21] >> Item 37 is a request to approve a third amendment

[1:51:22] to our contract DA5638 with Katie Industries,

[1:51:22] increasing the contract authority by 2.6 million

[1:51:24] and extend the contract term by one year for May 1928.

[1:51:27] 80 industry provides specialized medium voltage

[1:51:30] and electrical support services for,

[1:51:33] emergency repairs, maintenance, testing, support

[1:51:38] and technical training for our FMD staff.

[1:51:41] The amendment is needed due to several significant and

[1:51:45] unanticipated electrical system events that

[1:51:47] have accelerated the contract expenditures, including

[1:51:50] medium voltage switchgear repairs at the Tom Bradley

[1:51:54] Terminal.

[1:51:55] Electrical pulse weight failures at terminal seven

[1:51:58] and critical breaker failure at the Mercury Air Cargo facility

[1:52:02] and the recent emergency repair of--

[1:52:13] additional funding will support the ongoing switchgear

[1:52:20] modernization efforts, s, emergency response capability,

[1:52:22] technical training and specialized training services

[1:52:22] necessary to maintain safe, reliable and compliant operation

[1:52:25] of Laos electrical infrastructure.

[1:52:27] The systems are critical to airport operations

[1:52:29] and support essential fire life safety and security functions

[1:52:33] throughout lax.

[1:52:34] While not inclusivity goals were identified for the contract,

[1:52:44] KT industries is certified with the City of Los Angeles

[1:52:49] as both a local business enterprise and a small business

[1:52:51] enterprise.

[1:52:52] I'm available for any questions.

[1:53:01] >> Are there any speakers for this item?

[1:53:04] >> No, madam chair.

[1:53:06] >> Any board have questions or comments?

[1:53:07] >> Does this cover contract van Nuys as well or just

[1:53:07] specifically lax?

[1:53:08] >> Or Van Nuys.

[1:53:19] >> Any other questions or comments?

[1:53:20] Could I please have a motion to approve item number 37?

[1:53:24] Thank you, Commissioner Roxborough for moving

[1:53:34] and Commissioner Velasco for the second.

[1:53:36] All those in favor please say aye.

[1:53:43] Any opposed, say no.

[1:53:49] The ayes have it.

[1:53:50] Item number 37 is approved.

[1:53:51] >> I just want to say thanks for presenting those items.

[1:53:55] Foo is a member of the Maintenance Leadership team

[1:53:58] and has been coming off of 24 hour employee barbecues.

[1:54:01] I think all the executives in the front row,

[1:54:01] they were late last night or early this morning,

[1:54:01] who was there for both and he still did a great job.

[1:54:04] Thank you for that.

[1:54:14] Thank you for leading our team.

[1:54:21] [Applause]

[1:54:21] >> We are now on item number 38.

[1:54:23] I would ask Mr. JP to come up.

[1:54:32] Nope.

[1:54:33] >> I look like him but I'm not him.

[1:54:33] My name is Denise Semple.

[1:54:33] I'm director of concessions and antenna relations.

[1:54:33] I'm here to talk about the seventh amendment

[1:54:35] to the terminal media operator concession agreement

[1:54:38] with JC Decaux.

[1:54:50] Has been here for about 20 years.

[1:54:52] They were awarded their first contract in 2014.

[1:54:52] They've been an incredible contract for us

[1:54:52] and has built and made sure that things

[1:54:52] like you see on the screen and Tom Bradley

[1:54:54] are showing us content all the time and mostly luxury.

[1:54:56] Their revenue to us has exceeded over $276 million over the term.

[1:55:02] The current contract expires at the end of 2027.

[1:55:07] The reason we're in front of you today

[1:55:18] is we would like a year extension for them

[1:55:19] to continue us through the Olympics,

[1:55:22] continuous through the ongoing reconstruction

[1:55:25] project of Tom Bradley, four and terminal five.

[1:55:27] And because they were a partners in Paris of the Olympic Games,

[1:55:27] we know they're capable of of bringing us

[1:55:28] the top of the line experience with the Olympic team.

[1:55:32] And overview of this amendment is

[1:55:41] this will get us an additional year through the Olympics.

[1:55:43] It will also during 2028 provide us

[1:55:43] an increase in revenue share from our current 70% to 73%,

[1:55:46] which is about a $1.4 million increase in revenue

[1:55:50] in that year.

[1:55:51] It enables JC to to upgrade the integrated media

[1:55:55] system in the Tom Bradley, which includes

[1:56:09] all of the storyboard and the Tom tower,

[1:56:11] the Bon Voyage wall, all of which

[1:56:11] have not been upgraded since they were installed in 2012.

[1:56:11] There's a cost to that of about $25 million.

[1:56:13] This will also allow Jcdecaux to finalize the installation

[1:56:17] of all the things in terminal four, whatever

[1:56:20] assets we allow them to install in terminal five.

[1:56:24] We do is we promise you previously, planned

[1:56:27] to release an RFP in 2027, for a new or continuing terminal media

[1:56:33] operator.

[1:56:33] We will host an industry day, we have talked about

[1:56:37] to encourage other companies and make sure

[1:56:49] that everybody can present their ideas so that we understand

[1:56:52] the reality of what could be coming to us in the future.

[1:56:52] And to have them be part of our discussion.

[1:56:54] As Commissioner Daniels mentioned .

[1:57:04] Do you have any questions?

[1:57:14] >> Do you have any questions?

[1:57:20] >> Do we have any speakers for this item?

[1:57:23] >> Yes.

[1:57:25] Adam Sullivan.

[1:57:31] >> Good morning.

[1:57:33] Vice president and esteemed members of the board.

[1:57:33] Good morning.

[1:57:33] I'm here to testify to the two decade partnership between LAWA

[1:57:38] and JCDecaux.

[1:57:42] The collaboration that stands as a benchmark

[1:57:44] for public private success in the airport media concession

[1:57:44] industry.

[1:57:44] I can proudly say that over the duration of this contract

[1:57:44] we have not just managed an advertising program.

[1:57:44] Working collaboratively with Lawa

[1:57:45] fundamentally transformed it and delivering immense value

[1:57:48] across three core pillars.

[1:58:03] We transform the media program into a premier revenue engine.

[1:58:06] When COVID 19 decimated global air travel,

[1:58:06] this close collaboration ensured our partnership did not crumble.

[1:58:09] Demonstrated an remarkable agility

[1:58:10] and our advertising revenues have

[1:58:14] increased beyond COVID levels.

[1:58:16] Even though overall passenger numbers

[1:58:18] have not yet fully recovered.

[1:58:19] This momentum was further underscored

[1:58:21] by our immensely successful revenue

[1:58:23] performance due to the recent World Cup

[1:58:26] providing our collaborative strategy successfully maximizing

[1:58:30] financial yield and protect Laos baselines

[1:58:33] and performs wider industry turns.

[1:58:37] Secondly, we have spearheaded the complete reinvention

[1:58:40] of the airport media environment establishing

[1:58:42] an ecosystem where digital is not the dominant media format.

[1:58:45] Looking ahead, the proposed contract extension

[1:58:48] is absolutely critical to the future proofing of Los media

[1:58:53] infrastructure.

[1:58:59] May I continue?

[1:59:12] >> Thank you.

[1:59:13] You're done.

[1:59:14] >> Any questions or comments from the board?

[1:59:17] With that, I will ask for a motion

[1:59:20] to be made to approve item number 38.

[1:59:23] Thank you, Commissioner Lobo moved

[1:59:31] and Commissioner Roxborough seconded.

[1:59:34] All those in favor, please say aye.

[1:59:43] Any opposed, say no.

[1:59:47] The ayes have it.

[1:59:49] Item number 38 has been approved.

[1:59:50] Are there any speakers on moving to the next item?

[1:59:52] Are there any speakers on closed session items?

[2:00:00] >> No.

[2:00:01] >> The comment period is now closed I would like to turn

[2:00:01] the time over to City Attorney before we break into closed

[2:00:01] session.

[2:00:01] >> Thank you.

[2:00:01] We were now going to the closed items

[2:00:01] to discuss those items listed on the closed session agenda.

[2:00:03] We will return back and report any action

[2:00:05] taken in the open session.

[2:00:25] >> Thank you.

[2:00:27] [Meeting has entered closed session]

Special Meeting @ LAWA Skyview Center

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