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>> Good morning.

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Welcome to the Board of Airport Commissioners special Meeting

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of August 27th 2026.

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This meeting is now in order.

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The time is 10:01 a.m.

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Please call the roll.

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[Roll call]

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>> President Johnson is absent.

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>> Good morning and welcome to the August meeting of the Board

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of Airport Commissioners.

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One of the traditions that I particularly

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appreciate before our board meetings

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is the opportunity to spend time with employees across the LAWA

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team and learn more about the work that is done every day

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and the people that is doing it.

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This morning my fellow commissioners and I

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had the pleasure of meeting members

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of our environmental planning team

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whose work helps ensure that we continue

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to transform our airports and we do so

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thoughtfully and responsibly.

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To our environmental planning colleagues

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that are here today thank you for spending time

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with us this morning and thank you for the work that you do.

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A very important work that you do on behalf of LAWA our guests

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and the communities we serve.

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Can ask that the members of the environmental Planning team

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please stand so you can be recognized?

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[Applause] When we last met in July,

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Los Angeles was nearing the conclusion

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of an extraordinary few weeks as one of the host cities

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for the FIFA World Cup games.

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With the tournament now behind us

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I want to recognize the tremendous efforts that

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went into welcoming over 5.1 million passengers in July

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from around the world and keeping our airports

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operating safely and efficiently throughout this historic event.

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What we accomplished was much more than managing a busy travel

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period.

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It demonstrated what Los Angeles is

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capable of when our airport committee works together

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toward a common goal.

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It also gave us an important opportunity

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to learn more about the preparations needed

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for what comes next.

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Last month we also marked two years

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until the 2028 Olympic and Paralympic Games.

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The World Cup gave us an opportunity

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to demonstrate our readiness on the global stage but at least 28

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will be on an entirely different scale.

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That makes the work underway our across our airports even more

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important.

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We are not simply preparing for a few weeks in 2028.

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We are making investments that will improve the airport

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experience for millions of travelers

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and benefit our region for decades to come.

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One important example of that progress

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came earlier this Month when LAWA was awarded a $289 million

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grant from the Federal Aviation Administration.

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This grant was going towards supporting ongoing construction

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of new access and roadways.

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20% of this grant is going to be dedicated to labor costs

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covering over 556,000 work hours.

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556,000 work hours.

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The funding will support the airfield and terminal

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modernization program roadway improvements Project

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which will separate airport traffic from local traffic

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and is expected to significantly reduce congestion

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on Sepulveda Boulevard while providing

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more efficient access to LAX.

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That's at least clap for that.

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[Applause] That this is an important investment

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not only in our infrastructure but in the experience

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that we want to provide for our travelers and the surrounding

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communities.

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It also builds upon the significant investments already

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underway to transform LAX into a more

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efficient, welcoming and distinctly Los Angeles gateway.

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I want to thank our federal partners for their support

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and everyone at the LAWA team who helps secure this funding

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and who continues to move this critical project forward.

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Last week we celebrated National Aviation Day and an opportunity

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to recognize not only the incredible role aviation plays

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in connecting people and economies around the world

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but also the people who make that possible every day.

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Across LAX and Van Nuys airports, thousands of people

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work around the clock to keep our airports moving.

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As commissioners, we have the privilege

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of seeing how much work happens behind the scenes

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to operate and transform these airports.

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I want to close by saying thank you.

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Mr. Ackerman, I now turn it over to you for your presentation.

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>> Thank you very much.

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I'm going to start with our key airport indicators.

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I'm just going to get a snapshot of different metrics

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that we track and measure our performance.

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I want to talk about satisfaction and cleanliness.

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You can see we've been making some improvement trends

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and those scores have planned lately.

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But in some cases, we're always striving for improvement

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with the intense amount of work we're

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doing with the disruptions of our construction,

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and at times its good.

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It's a meaningful accomplishment just to tread water.

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We believe the investments we're making right now

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will be manifesting themselves later.

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I want to commend the teams that are working hard

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to maintain our commitment and satisfaction scores and all

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the work that we're doing.

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Our sustainability initiatives also

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continue to produce results.

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You can see organic waste diversion has increased

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double digits year over year and we're continuing

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to grow our workforce.

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This is part of our people's first strategy

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to get properly staffed get our teams property staff so we

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can better serve our customers.

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On August 4th, Community relations team and airport

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police hosted National Night Out at the LAX exit.

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Brought together employees and law enforcement partners

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and airport stakeholders members of our community,

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and airport police cadets welcoming guests

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with food drinks and music and giveaways,

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and provided resources and importantly information

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on our key projects.

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I was able to join Councilman Tracy Park thanking our law

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enforcement personnel and our public safety

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partners for this service.

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We did it at this location because instead of just keeping

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it in general to the LAWA family,

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we got to show public around the country and around the world,

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around LA, we got to show off our law enforcement

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partners who keep us safe.

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A couple of days later, we welcomed some different team

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members and their children with Bring Your Children to Work Day.

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Children aged 6 to 17 got an insight

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to look at what makes our airports run from airport

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police, the canines, hands on activities and opportunities

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to explore and learn about careers in aviation

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that the parents are pursuing.

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I had the pleasure of welcoming kids that morning.

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It was really cool to see the excitement and the curiosity

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and we hope that we inspired a few of them

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to join our team for several years down the road.

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Earlier this month we brought together La managers

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across the airport and in this very room

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for a dedicated session that focused

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on our culture and the role that leaders and frontline

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leaders play in shaping it.

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This is also part of our broader people

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first work and taking a more intentional and measurable

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approach to defining the culture that we

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need to achieve our goals and deliver on the transformation

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that we promised.

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Our managers are critical of that effort

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because they are the link between the organizational

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values and how those values show up every day for our employees.

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Gave our managers an opportunity to help

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shape the conversation and this work

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will continue as we develop a shared cultural framework

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and more intentional about how we embed it

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and drive it through the organization.

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Last month We hosted LA SAN and LA DWP

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at our central Italy plant to begin commissioning discussions

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to a new recycled water supply from the significant long term

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effect dating all the way back to 2018

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and spanning five construction projects to build

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the infrastructure necessary to bring the water to LAX.

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We're getting closer to being equipped

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and to receive that recycled water.

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It's a great example of how partnerships across the City

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agencies driven by the administration

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are helping build a more sustainable and resilient

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airport.

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Earlier this month, the girls build LA Career

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exploration program celebrated the completion of a three week

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summer program with 78 students representing 32 Los Angeles area

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high schools.

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Students received hands on experience at LAX

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and venues toured.

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Vice President and Commissioner Laboy

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joined the girls at the commissioning ceremony,

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along with representatives from Aruba's office and education

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labor and industry partner.

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The program is primarily supported

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by the City of Los Angeles workforce Innovation

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and Opportunity Act Funding.

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LAWA's roadways, utilities and enabling route project

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has been named honors 2026 best Project in Southern California

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Aviation Transit category.

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And it may not be one of our most visible projects

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but it's been is essential to making our transformation

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possible pure support Skylink, our connection to Metro

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and many other major improvements

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across the LAX campus.

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It's been a tremendous recognition

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of years of complex work and collaboration

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by team and all of our project partners.

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I want to congratulate everyone that has played

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a role in this achievement.

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Pleased to share that we've got several recent additions

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to our leadership team.

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Aaron Trapp has been promoted to Assistant General

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manager and Chief strategy and external affairs officer.

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Aaron will be leading affairs, in our communications,

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major events and enterprise strategy.

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Dylan Petty recently joined Lawa deputy executive director

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of Capital Programs reporting -- aviation experience will help

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strengthen the planning, and deliverance of our planning

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governance.

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The Planning Commission will also

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transition to the development under Dylan's leadership

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and Jackie Grass has joined our team

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and has been appointed Deputy of Strategy innovation

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and experience reporting to Courtney.

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Will help lead our experience strategy and advance innovation

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across terminal operations and guest experience

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in public arts and strategic projects.

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Mr. Grass has decades of private sector

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experience in major operations.

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Guest experience and is going to be a welcomed addition

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to our team.

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These leadership additions are all

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about strengthening coordination and accountability across Lawa

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and ensuring that we have the right leadership structure

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and expertise in place as we manage our transportation

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to prepare for the 2020 Olympic and Paralympic Games.

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Last month we welcomed 40 new team members

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across different areas of divisions and groups.

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Thank you for the wow.

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Thanks a lot.

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If you see these folks around the airport,

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give them a warm welcome to the family.

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Thank you so much to our HR team who's worked so hard to recruit

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and attract these team members.

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This concludes my CEO update.

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I would now like to move to management report

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from miss Strap on FIFA.

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>> You talked about the culture at LAWA.

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I've been here seven years.

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I cannot say enough about the culture.

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Meaning that I represent mostly business by themselves.

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And you folks at LAWA are remarkable,

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and have been every single day.

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I talk to you guys to many of my clients

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when they complained about certain things.

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I talk about how there is a lot of people

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that talk about teamwork.

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You guys are teamwork.

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The job you guys do is remarkable.

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If you knew me better, I'm pretty critical of people's work

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habits.

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So I give that with great sincerity and appreciation.

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>> Thank you very much, commissioner.

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Mrs. Trap.

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>> Good luck.

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>> Thanks for the kind words on behalf of the whole team.

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We appreciate that, and we're working towards building

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a strong culture.

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This is my first time.

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Good morning.

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I have the great honor of leading the team and strategy

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and external affairs which includes the major event group.

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And recently hosted the FIFA World Cup

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all the way through the quarterfinals

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and had an extraordinary experience

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for the city and the team.

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I just want to highlight a few things for all of us

269
00:13:09,800 --> 00:13:15,163
as we reflect on FIFA and look forward the Olympic in 687 days.

270
00:13:15,163 --> 00:13:19,306
There was a lot of talk about in the run

271
00:13:19,306 --> 00:13:21,442
up to FIFA about whether it would be successful

272
00:13:21,442 --> 00:13:23,794
or if the hotels were going to be filled.

273
00:13:23,794 --> 00:13:26,200
The good news is that according to the host committee

274
00:13:26,200 --> 00:13:29,118
we outperformed our expectations for FIFA

275
00:13:29,118 --> 00:13:32,566
and we outperformed most of the cities who got to host.

276
00:13:32,566 --> 00:13:36,766
FIFA was comprised of 13 countries and 16 cities.

277
00:13:38,260 --> 00:13:38,882
25 airports.

278
00:13:38,882 --> 00:13:42,406
I would venture to say that LA performed among the best if not

279
00:13:42,406 --> 00:13:43,346
the very best.

280
00:13:43,346 --> 00:13:47,372
We outperformed our projections by more than 50%

281
00:13:47,372 --> 00:13:49,860
which is pretty incredible.

282
00:13:49,860 --> 00:13:51,860
And more than half of the economic impact

283
00:13:51,860 --> 00:13:52,460
came from visitors.

284
00:13:52,460 --> 00:13:53,876
You can see where I'm going here.

285
00:13:53,876 --> 00:13:56,479
All of these people for the most part came through LAX.

286
00:13:56,479 --> 00:14:00,606
We do know that people who are international visitors

287
00:14:00,606 --> 00:14:03,640
spend an average three times what others do.

288
00:14:03,640 --> 00:14:05,106
We were thrilled overall with the results of this

289
00:14:05,106 --> 00:14:07,456
and we were also thrilled with how our airport

290
00:14:07,456 --> 00:14:08,289
and teams performed.

291
00:14:08,289 --> 00:14:10,373
I'm just going to give you a few of the highlights

292
00:14:10,373 --> 00:14:12,134
as well as some of the lessons learned.

293
00:14:12,134 --> 00:14:14,692
Eight matches and 15 teams period

294
00:14:14,692 --> 00:14:18,156
when you make a plan for something

295
00:14:18,156 --> 00:14:22,514
like this, you make it around the elements like safety

296
00:14:22,514 --> 00:14:24,660
and how teams are going to come out

297
00:14:24,660 --> 00:14:25,566
and people are going to communicate.

298
00:14:25,566 --> 00:14:28,119
What you don't want to do is disrupt mainstream travelers

299
00:14:28,119 --> 00:14:30,535
because the thing is that it's a challenge for people who

300
00:14:30,535 --> 00:14:32,368
are coming here on regular basis and we also

301
00:14:32,368 --> 00:14:33,829
want to make it feel like the World

302
00:14:33,829 --> 00:14:36,790
Cup, the magic of these types of international events.

303
00:14:36,790 --> 00:14:37,772
You build a plan for that.

304
00:14:37,772 --> 00:14:39,594
The plan doesn't survive first contact.

305
00:14:39,594 --> 00:14:42,346
So there are some lessons learned.

306
00:14:42,346 --> 00:14:45,446
We certainly performed well in many ways.

307
00:14:45,446 --> 00:14:47,486
We couldn't have done it without our partners.

308
00:14:47,486 --> 00:14:50,606
We probably have the best partners at TSA in the country

309
00:14:50,606 --> 00:14:52,286
as we've seen throughout the year.

310
00:14:52,286 --> 00:14:57,570
So from TSA to the border to homeland security,

311
00:14:57,570 --> 00:14:59,195
people worked in lockstep because there

312
00:14:59,195 --> 00:15:01,280
was so much planning amongst these partners.

313
00:15:01,280 --> 00:15:02,537
No hiccups on safety and security

314
00:15:02,537 --> 00:15:04,579
which is exactly the foundation we need to build.

315
00:15:04,579 --> 00:15:07,246
I attribute that to the team's good work and preparation.

316
00:15:07,246 --> 00:15:11,200
So we had improvements that were anticipated

317
00:15:11,200 --> 00:15:13,612
and a few that weren't I'll talk through some

318
00:15:13,612 --> 00:15:15,139
of the lessons learned with that.

319
00:15:15,139 --> 00:15:19,660
You can see the matches on the screen here and the teams

320
00:15:19,660 --> 00:15:21,594
that we moved through and ultimately 15 teams

321
00:15:21,594 --> 00:15:24,352
came through from countries around the world.

322
00:15:24,352 --> 00:15:27,419
I'll give you a peek behind the scenes.

323
00:15:27,419 --> 00:15:29,669
When I talk about the Olympics coming.

324
00:15:29,669 --> 00:15:31,710
This goes for FIFA as well.

325
00:15:31,710 --> 00:15:35,986
It's not about the people it's about the luggage.

326
00:15:35,986 --> 00:15:38,386
They have a lot.

327
00:15:38,386 --> 00:15:43,379
For FIFA -- what you see on the screen on the left is one

328
00:15:43,379 --> 00:15:44,282
team's personal bags.

329
00:15:44,282 --> 00:15:47,946
I think the team from Jordan on the right

330
00:15:47,946 --> 00:15:50,692
are the teams from Switzerland and Austria.

331
00:15:50,692 --> 00:15:53,346
You can see the types and most of the baggage

332
00:15:53,346 --> 00:15:56,980
came in in cubes which is really helpful.

333
00:15:56,980 --> 00:15:59,848
We did not find that those -- we have seen that in the Olympics

334
00:15:59,848 --> 00:16:02,306
the sheer volume of bags that come in when they're bringing

335
00:16:02,306 --> 00:16:05,186
soccer balls is not quite as impactful as it will be when

336
00:16:05,186 --> 00:16:09,922
they're bringing in canoes and pole belts and horses and things

337
00:16:09,922 --> 00:16:12,866
that are going to challenge our baggage system.

338
00:16:12,866 --> 00:16:16,126
The teams had a good plan for putting together

339
00:16:16,126 --> 00:16:18,686
the baggage handling and the overall performed

340
00:16:18,686 --> 00:16:19,912
with very few hiccups.

341
00:16:19,912 --> 00:16:24,660
We had a plan for most of the teams to arrive via charter.

342
00:16:24,660 --> 00:16:28,559
We want to keep those movements outside of the main terminal

343
00:16:28,559 --> 00:16:30,306
area if we can for security purposes

344
00:16:30,306 --> 00:16:32,688
and to make sure that we don't disrupt the main flow of.

345
00:16:32,688 --> 00:16:34,980
You can see some of the pictures here that our team had

346
00:16:34,980 --> 00:16:36,906
a great time going out on the runways

347
00:16:36,906 --> 00:16:39,906
to take some pictures with the folks.

348
00:16:39,906 --> 00:16:42,186
It was important to us that the teams

349
00:16:42,186 --> 00:16:44,114
felt the LA welcome from that moment

350
00:16:44,114 --> 00:16:45,741
and that came from our teams.

351
00:16:45,741 --> 00:16:48,241
The surface that you see went just as a chance for our teams

352
00:16:48,241 --> 00:16:49,740
to have selfies.

353
00:16:49,740 --> 00:16:52,986
It was a chance for them to feel the LA love.

354
00:16:52,986 --> 00:16:57,186
So when you lose, you go home.

355
00:16:57,866 --> 00:16:59,866
You are no longer brings you around the country.

356
00:16:59,866 --> 00:17:02,586
You typically contact your national airline and go home.

357
00:17:02,586 --> 00:17:04,848
Most of the departures came to the terminals.

358
00:17:04,848 --> 00:17:07,410
You can see our teams putting people

359
00:17:07,410 --> 00:17:09,600
through the front door of mostly Tibet.

360
00:17:09,600 --> 00:17:10,818
There's Nicole Carousel who would

361
00:17:10,818 --> 00:17:14,318
be giving this presentation but she's on a well-deserved day

362
00:17:14,318 --> 00:17:14,818
off.

363
00:17:14,818 --> 00:17:19,472
I want to recognize her work and her team it was so good.

364
00:17:19,472 --> 00:17:22,186
Making sure these front door departures largely

365
00:17:22,186 --> 00:17:23,858
didn't impact our operations.

366
00:17:23,858 --> 00:17:27,826
And it wouldn't be LA X without a red carpet.

367
00:17:27,826 --> 00:17:29,922
So our VIPs were literally treated

368
00:17:29,922 --> 00:17:32,484
to a red carpet experience in one of our graduates.

369
00:17:32,484 --> 00:17:34,866
This move was copied by airports around the country

370
00:17:34,866 --> 00:17:37,182
because it's just a good idea--

371
00:17:37,182 --> 00:17:40,837
how do you make people feel just a little?

372
00:17:40,837 --> 00:17:44,588
We talk about when we're stars, we

373
00:17:44,588 --> 00:17:46,460
talk about that feeling of arrival,

374
00:17:46,460 --> 00:17:48,380
and that's the little red carpet.

375
00:17:48,380 --> 00:17:51,100
And through our events, we talk about employees.

376
00:17:51,100 --> 00:17:53,346
This is what we're really most proud of

377
00:17:53,346 --> 00:17:54,759
and what we worked hard on.

378
00:17:54,759 --> 00:17:58,236
FIFA came and went over 28 days, rather quickly.

379
00:17:58,236 --> 00:18:02,510
We wanted to make sure that our employees really got

380
00:18:02,510 --> 00:18:03,259
to participate in that magic.

381
00:18:03,259 --> 00:18:06,642
We were able to procure just a handful of tickets

382
00:18:06,642 --> 00:18:12,680
for the actual games, but dozens of tickets for the FIFA Fan Fest

383
00:18:12,680 --> 00:18:14,260
at SoFi Stadium where people could go and watch

384
00:18:14,260 --> 00:18:18,307
games and participate with each other and cheer the teams on.

385
00:18:18,307 --> 00:18:20,584
We had almost a third of our employees

386
00:18:20,584 --> 00:18:23,238
signed up for the raffle for this, which was amazing in terms

387
00:18:23,238 --> 00:18:23,946
of participation.

388
00:18:23,946 --> 00:18:26,614
We never get that kind of participation.

389
00:18:26,614 --> 00:18:29,114
Maybe we can give some of these away for the employee survey

390
00:18:29,114 --> 00:18:31,519
and give our numbers even higher.

391
00:18:31,519 --> 00:18:34,866
We also hosted a watch party in this building

392
00:18:34,866 --> 00:18:35,906
on the fifth floor.

393
00:18:35,906 --> 00:18:38,122
We really tried to give employers a chance

394
00:18:38,122 --> 00:18:40,346
to participate in the FIFA fund, and we've

395
00:18:40,346 --> 00:18:42,538
got very good feedback on that.

396
00:18:42,538 --> 00:18:44,786
That's our chief people officer.

397
00:18:44,786 --> 00:18:47,137
Wearing one of the FIFA scarves that we gave out

398
00:18:47,137 --> 00:18:48,970
to the employees along with the soccer balls

399
00:18:48,970 --> 00:18:51,127
bringing the good vibes to the whole team.

400
00:18:51,127 --> 00:18:53,127
We have a few pictures of what that looked like.

401
00:18:53,127 --> 00:18:55,111
You have some folks in the audience,

402
00:18:55,111 --> 00:18:56,569
and you've got one of these things.

403
00:18:56,569 --> 00:19:00,226
You can give a whoop, but I won't name other names.

404
00:19:00,226 --> 00:19:04,777
But I want to recognize some of the great teams.

405
00:19:04,777 --> 00:19:07,402
You have the gems, the incidentals,

406
00:19:07,402 --> 00:19:10,402
and there's Nicole, Lieutenant Gwen.

407
00:19:10,848 --> 00:19:14,938
Just a few of the folks that made it happen.

408
00:19:14,938 --> 00:19:17,858
And finally look and feel, we were the only airport

409
00:19:17,858 --> 00:19:19,986
that would have our very own official merchandise

410
00:19:19,986 --> 00:19:21,820
store in the airport.

411
00:19:21,820 --> 00:19:23,151
That's our T7 store there, we were

412
00:19:23,151 --> 00:19:25,359
able to get some very cool activations on the garages

413
00:19:25,359 --> 00:19:27,186
and on the various buildings around campus.

414
00:19:27,186 --> 00:19:29,340
These were extremely popular for selfies.

415
00:19:29,340 --> 00:19:31,980
I hope we didn't shove anybody out

416
00:19:31,980 --> 00:19:33,306
of the way to get the picture of the countdown clock,

417
00:19:33,306 --> 00:19:34,889
but that thing was regularly populated

418
00:19:34,889 --> 00:19:40,426
with people wanting a picture with the actual countdown clock.

419
00:19:40,426 --> 00:19:43,639
Really great activation from the team.

420
00:19:43,639 --> 00:19:45,766
Largely proceeded without hiccups.

421
00:19:45,766 --> 00:19:48,898
You learn some things throughout the course of the business.

422
00:19:48,898 --> 00:19:52,706
I would say, advanced planning matters so much.

423
00:19:52,706 --> 00:19:56,572
You can plan to 100, but you're never going to get more than 90.

424
00:19:56,572 --> 00:19:58,489
And you have to be able to respond.

425
00:19:58,489 --> 00:20:00,906
The fact that we had a good plan in such good coordination

426
00:20:00,906 --> 00:20:02,588
was the partners, that's what made

427
00:20:02,588 --> 00:20:05,612
it work when we heard six hours beforehand that the team was

428
00:20:05,612 --> 00:20:09,812
going to land, that we hadn't expected.

429
00:20:16,746 --> 00:20:20,286
The team was able to rally in that case because

430
00:20:20,286 --> 00:20:21,586
of the early coordination.

431
00:20:21,586 --> 00:20:23,892
The other piece of it is the regional cooperation

432
00:20:23,892 --> 00:20:25,242
was really important to us.

433
00:20:25,242 --> 00:20:27,236
These people were going all over the community.

434
00:20:27,236 --> 00:20:32,761
Their home bases were around the city, and we had to find ways

435
00:20:32,761 --> 00:20:35,366
to make sure that people got to where they needed to be.

436
00:20:35,366 --> 00:20:37,498
This has been some months now that I presented

437
00:20:37,498 --> 00:20:43,818
on what we learned from Paris when we observed the last summer

438
00:20:43,818 --> 00:20:44,442
Olympics.

439
00:20:44,442 --> 00:20:48,459
So people flooding the zone was sort of the key lesson

440
00:20:48,459 --> 00:20:51,122
from Paris, not building a bunch of new things

441
00:20:51,122 --> 00:20:51,972
that are not needed.

442
00:20:51,972 --> 00:20:53,501
So we're a no build Olympics.

443
00:20:53,501 --> 00:20:55,626
We know that people are going to be the foundation.

444
00:20:55,626 --> 00:20:58,666
And this was absolutely born out from FIFA.

445
00:20:58,666 --> 00:21:01,411
Preparing the team and giving the team

446
00:21:01,411 --> 00:21:02,786
opportunities to understand where

447
00:21:02,786 --> 00:21:05,726
they were going to be irregular operations, giving people

448
00:21:05,726 --> 00:21:07,720
a chance to help out when people are coming in.

449
00:21:07,720 --> 00:21:10,178
Those are the things that made the difference and those are

450
00:21:10,178 --> 00:21:11,654
the things that are ultimately going

451
00:21:11,654 --> 00:21:13,420
to have to take into the Olympics

452
00:21:13,420 --> 00:21:19,642
because I say that the World Cup is 8 games over 28 days,

453
00:21:21,310 --> 00:21:25,810
and that's something that we do in major events

454
00:21:25,810 --> 00:21:28,666
because every day is a major event in Los Angeles.

455
00:21:28,666 --> 00:21:31,248
The Olympics is seven Super Bowls a day

456
00:21:31,248 --> 00:21:35,292
for 14 days of events, a little break in the Paralympic.

457
00:21:35,292 --> 00:21:38,892
It's three Super Bowls a day.

458
00:21:40,860 --> 00:21:44,866
But FIFA was a success, an even bigger success than we thought.

459
00:21:44,866 --> 00:21:47,532
Hopefully the folks felt the magic

460
00:21:47,532 --> 00:21:50,226
and didn't feel too much pain during the operation.

461
00:21:50,226 --> 00:21:51,786
>> Can I make a quick comment?

462
00:21:51,786 --> 00:21:54,498
I was lucky enough to see these landings myself,

463
00:21:54,498 --> 00:21:56,660
and the commercial ones.

464
00:21:56,660 --> 00:21:58,627
I want to take a personal note to thank you.

465
00:21:58,627 --> 00:22:01,826
Nicole worked so hard on that as well as the entire team,

466
00:22:01,826 --> 00:22:05,130
as well as our airport police and the security partners

467
00:22:05,130 --> 00:22:07,506
and it's very dicey, geopolitically

468
00:22:07,506 --> 00:22:11,873
in the news moments that required real precision.

469
00:22:11,873 --> 00:22:17,273
Kudos to the team for executing that >> Thank you

470
00:22:19,303 --> 00:22:20,178
for that recognition.

471
00:22:20,178 --> 00:22:21,530
I think Josh is here.

472
00:22:21,530 --> 00:22:23,186
Josh worked on the community relations

473
00:22:23,186 --> 00:22:25,896
team and the whole team for major events really made

474
00:22:25,896 --> 00:22:26,496
that happen.

475
00:22:26,496 --> 00:22:28,496
We appreciate that.

476
00:22:29,266 --> 00:22:30,609
>> Thank you.

477
00:22:30,609 --> 00:22:34,809
Are there any speakers on this presentation?

478
00:22:36,250 --> 00:22:38,700
>> No.

479
00:22:38,700 --> 00:22:40,490
>> Are there any comments or questions from other

480
00:22:40,490 --> 00:22:42,490
commissioners?

481
00:22:42,576 --> 00:22:46,260
>> I just wanted to echo what Courtney said,

482
00:22:46,260 --> 00:22:47,172
Commissioner Labeau.

483
00:22:47,172 --> 00:22:51,378
The fact that you put on an event at this length of time

484
00:22:51,378 --> 00:22:53,314
in an international basis and you

485
00:22:53,314 --> 00:22:56,202
don't read on the front page of the LA times, anything

486
00:22:56,202 --> 00:22:56,874
gone wrong.

487
00:22:56,874 --> 00:23:01,674
We always hear about things that go wrong.

488
00:23:02,849 --> 00:23:04,516
When you don't hear anything, most of us

489
00:23:04,516 --> 00:23:06,546
know how remarkable it is in this area.

490
00:23:06,546 --> 00:23:09,300
So you should pat yourself on the back for that.

491
00:23:09,300 --> 00:23:11,970
And on a serious note, I want you

492
00:23:11,970 --> 00:23:13,739
to talk more about the Paraguay game,

493
00:23:13,739 --> 00:23:16,152
about America we won 4 to 1.

494
00:23:16,152 --> 00:23:18,666
You should never leave that game early.

495
00:23:18,666 --> 00:23:22,866
Sometimes you see the most remarkable goals.

496
00:23:24,900 --> 00:23:26,900
>> That's right.

497
00:23:27,326 --> 00:23:29,326
No comment.

498
00:23:29,870 --> 00:23:31,478
>> Point taken.

499
00:23:31,478 --> 00:23:33,186
>> Any other comments from commissioners?

500
00:23:33,186 --> 00:23:35,586
>> Thank you very much.

501
00:23:35,986 --> 00:23:38,796
We're going to hear from Mr. Tabit on our Procurement

502
00:23:38,796 --> 00:23:40,826
and Commercial Excellence program,

503
00:23:40,826 --> 00:23:42,902
and then JP comes up to the podium.

504
00:23:42,902 --> 00:23:45,331
You're going to see a little while later

505
00:23:45,331 --> 00:23:48,931
a remarkable transformation of terminal five

506
00:23:49,818 --> 00:23:50,891
and the future of La.

507
00:23:50,891 --> 00:23:54,446
We talked a little bit about the culture that we're transforming.

508
00:23:54,446 --> 00:23:58,790
We're also looking for new ways to do work.

509
00:23:58,790 --> 00:24:00,566
We have a backlog of things that need

510
00:24:00,566 --> 00:24:02,586
to be done across all of the verticals

511
00:24:02,586 --> 00:24:04,452
that we are working on.

512
00:24:04,452 --> 00:24:09,199
We have come up with a novel way to support our team

513
00:24:09,199 --> 00:24:11,770
and make them even more effective

514
00:24:11,770 --> 00:24:18,540
and realize some of these gains for LAWA Los Angeles even

515
00:24:18,540 --> 00:24:18,554
quicker.

516
00:24:18,554 --> 00:24:20,286
Some of that is coming into fruition.

517
00:24:20,286 --> 00:24:22,780
We've been talking about it for six months.

518
00:24:22,780 --> 00:24:24,246
We're actually going to show you results today.

519
00:24:24,246 --> 00:24:25,910
Wanted to have JP give you a little bit

520
00:24:25,910 --> 00:24:27,646
of an overview of what we're doing.

521
00:24:27,646 --> 00:24:29,813
We'll have more of this to come in the coming months

522
00:24:29,813 --> 00:24:33,413
as we build out this program.

523
00:24:34,457 --> 00:24:36,457
>> Thank you, John.

524
00:24:36,808 --> 00:24:39,208
Vice President, Commissioners, I'm

525
00:24:40,500 --> 00:24:42,258
here to show you the first results of the Procurement

526
00:24:42,258 --> 00:24:43,386
and Commercial Excellence Program

527
00:24:43,386 --> 00:24:45,344
that we initiated at the beginning of the year.

528
00:24:45,344 --> 00:24:49,714
We have concrete results that I will be showing you today.

529
00:24:49,714 --> 00:24:53,993
The program was initially set up at the beginning

530
00:24:53,993 --> 00:25:01,193
of the year with a focus on looking on our revenue streams.

531
00:25:01,301 --> 00:25:02,926
Not so much on the procurement policies

532
00:25:02,926 --> 00:25:05,466
but mostly revenue streams and to benchmark

533
00:25:05,466 --> 00:25:08,506
against peers and industry and market standards.

534
00:25:08,506 --> 00:25:13,506
After a brief diagnostic period, we went into the implementation

535
00:25:13,506 --> 00:25:17,106
and we have identified approximately 50 opportunities.

536
00:25:19,906 --> 00:25:24,706
Of those 50 opportunities, I'm here today talking about 16

537
00:25:26,666 --> 00:25:31,466
concrete-- two I will not touch upon now,

538
00:25:36,195 --> 00:25:38,612
but they will be presented next board meeting in September

539
00:25:38,612 --> 00:25:42,212
because we are under contract discussions.

540
00:25:42,906 --> 00:25:46,906
The 16 that we're bringing to you today

541
00:25:46,906 --> 00:25:51,706
we're bringing additional annual revenue increase of 12.4 million

542
00:25:54,460 --> 00:25:56,460
per annum.

543
00:25:56,986 --> 00:26:00,218
This will just bring us up to market standards.

544
00:26:00,218 --> 00:26:03,630
I need to reiterate that we're coming back to market standards

545
00:26:03,630 --> 00:26:09,300
and we are not becoming expensive, for certain people

546
00:26:10,460 --> 00:26:10,546
may do.

547
00:26:10,546 --> 00:26:14,666
Within the next day and the next session in September

548
00:26:14,666 --> 00:26:16,988
we will be introducing to you approximately 20 million

549
00:26:16,988 --> 00:26:19,660
in additional revenue per annum.

550
00:26:19,660 --> 00:26:22,626
So this all started out at the beginning of the year.

551
00:26:22,626 --> 00:26:26,439
We are in the process of evaluating a property management

552
00:26:26,439 --> 00:26:27,129
system.

553
00:26:27,129 --> 00:26:28,712
We're putting all of the data together

554
00:26:28,712 --> 00:26:30,737
in accumulating all the data to get ready

555
00:26:30,737 --> 00:26:31,695
for the implementation.

556
00:26:31,695 --> 00:26:35,980
And as part of that data, we looked at every single agreement

557
00:26:35,980 --> 00:26:41,698
that we have in place with airlines or other third parties.

558
00:26:42,603 --> 00:26:49,803
Better plan our future as we go to do RFPs or negotiations,

559
00:26:51,166 --> 00:26:54,136
that's it obvious that 17 of these agreements

560
00:26:54,136 --> 00:27:00,136
had been on hold over for a number of years

561
00:27:01,407 --> 00:27:03,407
for several reasons.

562
00:27:06,690 --> 00:27:10,890
Over the backlog, the cargo monetization program--

563
00:27:11,987 --> 00:27:13,987
COVID backlog.

564
00:27:14,301 --> 00:27:16,426
So what we did is we took a look at the deeper dive

565
00:27:16,426 --> 00:27:17,946
into those holdovers and see what

566
00:27:17,946 --> 00:27:21,146
was done in the last years, what are the contractual provisions?

567
00:27:21,146 --> 00:27:23,498
And in April we came to the board for approval

568
00:27:23,498 --> 00:27:25,979
for the ground rents, this is where we now

569
00:27:25,979 --> 00:27:29,392
started looking at the building rents that have not been adapted

570
00:27:29,392 --> 00:27:32,346
for not only the past four years,

571
00:27:32,346 --> 00:27:37,386
but also for a period prior to the agreements expiring.

572
00:27:37,386 --> 00:27:41,666
So I went to market and we benchmarked against peers as I

573
00:27:41,666 --> 00:27:47,660
mentioned earlier -- this is where we started defining

574
00:27:55,232 --> 00:27:59,432
the course of action for those holdover.

575
00:27:59,746 --> 00:28:03,506
Keeping in mind that we have to evaluate and maintain

576
00:28:03,506 --> 00:28:07,626
operation continuity as we look at the overall picture.

577
00:28:07,626 --> 00:28:14,226
We are in the process of modernizing all of our assets,

578
00:28:17,595 --> 00:28:23,595
be it terminals, be it cargo, real estate, access roads.

579
00:28:26,909 --> 00:28:28,576
And to maintain efficiency, we suggested

580
00:28:28,576 --> 00:28:30,586
that we will continue to do as we analyze

581
00:28:30,586 --> 00:28:34,186
what is our best way forward.

582
00:28:34,266 --> 00:28:38,319
To give these agreements an interim space for a period

583
00:28:38,319 --> 00:28:41,919
of two years, one plus one.

584
00:28:42,792 --> 00:28:47,258
That will allow us to think on the bigger and longer picture.

585
00:28:47,258 --> 00:28:52,658
Our aim is to improve efficiency and productivity, specifically

586
00:28:54,160 --> 00:28:56,266
within the critical areas because we're so constrained

587
00:28:56,266 --> 00:28:57,578
in terms of space.

588
00:28:57,578 --> 00:29:01,455
And potential growth in terms of opportunities.

589
00:29:01,455 --> 00:29:05,550
That said, We renegotiated the agreements.

590
00:29:06,706 --> 00:29:12,106
And as you can see here, Just these 16 or 17

591
00:29:14,773 --> 00:29:17,106
would have generated the baseline revenue of 47 million,

592
00:29:17,106 --> 00:29:21,603
now we anticipate an increase over 24.8 over two years.

593
00:29:21,603 --> 00:29:23,962
When I come back to what I said earlier,

594
00:29:23,962 --> 00:29:26,546
12.4 annual increase in the range of building

595
00:29:26,546 --> 00:29:28,546
grants from 35 to 45.

596
00:29:32,552 --> 00:29:33,969
Renting started prior negotiations

597
00:29:33,969 --> 00:29:37,626
with certain carriers and other third parties.

598
00:29:37,626 --> 00:29:41,146
The reason for one plus one is we

599
00:29:41,146 --> 00:29:44,617
are in the process of developing our long term real estate

600
00:29:44,617 --> 00:29:45,649
strategy.

601
00:29:45,649 --> 00:29:49,680
It is also mentioned in a prior board session,

602
00:29:49,680 --> 00:29:52,716
we are still in the discussions on the overall organization

603
00:29:52,716 --> 00:29:53,406
program.

604
00:29:53,406 --> 00:29:58,206
As these develop, we maintain flexibility and continuity

605
00:29:58,996 --> 00:30:04,396
and ensure that everyone is operating here at LAWA

606
00:30:04,779 --> 00:30:07,179
has a valid agreement.

607
00:30:08,757 --> 00:30:14,157
With that said, Just a brief introduction to cargo.

608
00:30:14,657 --> 00:30:16,966
Cargo has been declining since COVID.

609
00:30:16,966 --> 00:30:18,554
We're in a good path of growth again.

610
00:30:18,554 --> 00:30:21,860
We'll be discussing on how we discuss with the incumbents

611
00:30:21,860 --> 00:30:23,626
that we're talking about here and others that

612
00:30:23,626 --> 00:30:27,706
have non-expired leases and how to improve

613
00:30:27,706 --> 00:30:32,506
through the introduction of technology and other means

614
00:30:33,570 --> 00:30:38,399
to improve utilization per square foot, which means that we

615
00:30:38,399 --> 00:30:41,514
will be evaluating the contractual arrangements

616
00:30:41,514 --> 00:30:44,546
that we will have with those entities.

617
00:30:44,546 --> 00:30:48,146
So give them potentially longer term

618
00:30:48,172 --> 00:30:53,586
to be able to depreciate over a longer period of time.

619
00:30:53,586 --> 00:30:56,586
Thank you for your time.

620
00:31:00,172 --> 00:31:01,470
>> I have a question.

621
00:31:01,470 --> 00:31:02,797
We're going to ask if there's any comments

622
00:31:02,797 --> 00:31:04,797
for this presentation?

623
00:31:06,575 --> 00:31:07,236
>> No.

624
00:31:07,236 --> 00:31:07,386
>> We'll open it up for commissioner comments

625
00:31:07,386 --> 00:31:07,928
or questions.

626
00:31:07,928 --> 00:31:10,328
>> Sorry to jump ahead.

627
00:31:10,954 --> 00:31:12,246
Thank you for the presentation.

628
00:31:12,246 --> 00:31:14,570
Very interesting and I love the direction we're going in.

629
00:31:14,570 --> 00:31:16,695
When you are thinking about projecting cargo growth

630
00:31:16,695 --> 00:31:18,442
for the future, what are the things

631
00:31:18,442 --> 00:31:20,650
that you are taking into consideration for projecting

632
00:31:20,650 --> 00:31:27,850
that growth, since we've kind of been on a downturn since COVID?

633
00:31:29,318 --> 00:31:31,276
Give me an idea of things you're thinking about

634
00:31:31,276 --> 00:31:32,986
for projecting cargo growth.

635
00:31:32,986 --> 00:31:35,986
>> We're looking at multiple aspects.

636
00:31:37,103 --> 00:31:39,200
We're looking to see the reason why there have

637
00:31:39,200 --> 00:31:42,200
been potential loss of cargo.

638
00:31:43,641 --> 00:31:45,308
The market has been potentially growing.

639
00:31:45,308 --> 00:31:48,786
We have not invested in a period of 25 years in cargo facilities.

640
00:31:48,786 --> 00:31:50,657
That could be one of the aspects.

641
00:31:50,657 --> 00:31:53,278
We are looking at overall GDP.

642
00:31:53,278 --> 00:31:56,436
We have seen from COVID and beyond,

643
00:31:56,436 --> 00:31:58,426
we had some geopolitical concerns.

644
00:31:58,426 --> 00:32:02,260
So traffic from Asia has dropped.

645
00:32:04,340 --> 00:32:05,451
We are the main gateway from Asia.

646
00:32:05,451 --> 00:32:06,306
As part of our air service development,

647
00:32:06,306 --> 00:32:08,186
we're now going back to market looking

648
00:32:08,186 --> 00:32:11,106
at how we can improve discussions and negotiations

649
00:32:11,106 --> 00:32:16,426
with potential partners from Asia and bring back the traffic.

650
00:32:16,426 --> 00:32:21,100
As we develop our cargo facilities and our sequel

651
00:32:21,100 --> 00:32:24,610
process that has been started, we

652
00:32:24,642 --> 00:32:26,966
aim to provide state of the art facilities

653
00:32:26,966 --> 00:32:31,766
that will help increase our competitiveness with respect

654
00:32:31,946 --> 00:32:33,946
to other airports.

655
00:32:35,466 --> 00:32:37,866
>> I have a question.

656
00:32:38,270 --> 00:32:41,136
The infrastructure plan for the cargo modernization,

657
00:32:41,136 --> 00:32:43,356
you're going to come back to us with that?

658
00:32:43,356 --> 00:32:46,466
Do you submit a timeline for that?

659
00:32:46,466 --> 00:32:47,230
>> Correct.

660
00:32:47,230 --> 00:32:49,980
Back in April, we said we're going

661
00:32:49,980 --> 00:32:51,306
to have a six by six in terms of the first six months

662
00:32:51,306 --> 00:32:57,306
will be to evaluate and agree on the technical, mechanical side

663
00:32:57,306 --> 00:33:01,506
concerns and get those over the hurdles.

664
00:33:02,886 --> 00:33:05,286
Then starting contractual negotiations.

665
00:33:06,559 --> 00:33:09,572
End of the year will be a pivot point

666
00:33:09,572 --> 00:33:12,786
where we may need a decision or not.

667
00:33:12,786 --> 00:33:14,986
Ultimately, the target is to come to you

668
00:33:14,986 --> 00:33:17,186
in April of next year latest.

669
00:33:17,186 --> 00:33:20,786
>> That was a one year extension?

670
00:33:22,266 --> 00:33:27,660
>> What percentage of revenue is generated by cargo?

671
00:33:27,660 --> 00:33:30,617
>> I have to get back to you on that.

672
00:33:30,617 --> 00:33:32,367
I don't have the number on top of my head,

673
00:33:32,367 --> 00:33:33,825
but our greatest revenue generators

674
00:33:33,825 --> 00:33:38,250
would be the parking, commercial and advertising.

675
00:33:38,866 --> 00:33:42,879
We don't see cargo as a big revenue generator.

676
00:33:42,879 --> 00:33:47,741
We see it as a support service to attract airlines.

677
00:33:47,741 --> 00:33:50,933
It is a service that we need to have,

678
00:33:50,933 --> 00:33:53,160
and we need to provide because sometimes the belly

679
00:33:53,160 --> 00:33:59,160
cargo in passenger airlines can pivot from not making money

680
00:34:00,720 --> 00:34:03,306
to making money on certain routes.

681
00:34:03,306 --> 00:34:09,306
>> I'd be interested you comparing LAWA to the other US

682
00:34:14,170 --> 00:34:17,170
airports, how we match up.

683
00:34:18,613 --> 00:34:19,946
There is a business opportunity.

684
00:34:19,946 --> 00:34:22,346
>> Definitely a business opportunity.

685
00:34:22,608 --> 00:34:29,208
Number two in the country for cargo if you don't consider,

686
00:34:33,150 --> 00:34:34,416
DHL, Fedex.

687
00:34:34,416 --> 00:34:36,458
And we've been talking to some of our integrators

688
00:34:36,458 --> 00:34:39,394
who show commitment and want to grow within our footprint.

689
00:34:39,394 --> 00:34:42,122
We are very competitive, we would like

690
00:34:42,122 --> 00:34:44,306
to regain some lost ground.

691
00:34:44,306 --> 00:34:47,806
>> This has been an area where lax for various reasons over

692
00:34:47,806 --> 00:34:50,186
the years hasn't really invested in this business.

693
00:34:50,186 --> 00:34:53,626
We've not had dedicated staff whatsoever dedicated

694
00:34:53,626 --> 00:34:55,805
to this business until recently.

695
00:34:55,805 --> 00:34:57,906
It's going to take some time for us

696
00:34:57,906 --> 00:35:01,331
to convince our customers that we are diligently

697
00:35:01,331 --> 00:35:05,946
investing, that we're going to be here for their future.

698
00:35:05,946 --> 00:35:08,538
The geographic location we have here,

699
00:35:08,538 --> 00:35:10,191
and the other competitive advantage we

700
00:35:10,191 --> 00:35:11,376
have here is massive.

701
00:35:11,376 --> 00:35:13,474
You can see that we can easily lose the advantage

702
00:35:13,474 --> 00:35:16,460
if we don't continue to invest.

703
00:35:16,460 --> 00:35:20,246
We reversing decades and trends of lax,

704
00:35:20,252 --> 00:35:24,692
and just assuming we're lax and the business will come to us,

705
00:35:24,692 --> 00:35:26,706
we can see from the chart that that has changed.

706
00:35:26,706 --> 00:35:31,566
Now we are changing our behavior to get ahead of it

707
00:35:31,566 --> 00:35:34,431
and be proactive, invest in the business

708
00:35:34,431 --> 00:35:34,438
and go out and attract the business

709
00:35:34,438 --> 00:35:34,657
and pull that business in here.

710
00:35:34,657 --> 00:35:36,910
We know it can be done.

711
00:35:36,910 --> 00:35:38,674
Other airports have done it to us over the last several years.

712
00:35:38,674 --> 00:35:40,546
We know the playbook.

713
00:35:40,546 --> 00:35:43,786
We just have to get after it.

714
00:35:43,786 --> 00:35:48,586
>> This is not so much related to cargo,

715
00:35:50,300 --> 00:35:54,640
but LAX's inability to get employment numbers up

716
00:35:54,640 --> 00:35:55,314
to pre-COVID periods.

717
00:35:55,314 --> 00:35:58,914
I'm listening to the cargo presentation,

718
00:35:59,703 --> 00:36:02,839
I looked at the charts relative to recovery

719
00:36:02,839 --> 00:36:06,439
from COVID as far as employment.

720
00:36:08,767 --> 00:36:11,477
I'm wondering, do you have any ideas or thoughts

721
00:36:11,477 --> 00:36:18,770
about why L.A. Compared to other airports is not rebounding?

722
00:36:19,229 --> 00:36:21,187
>> We hadn't planned on talking about it today.

723
00:36:21,187 --> 00:36:26,256
But I will propose-- and we have talked about it in the past,

724
00:36:26,256 --> 00:36:27,506
and it's a lengthy discussion.

725
00:36:27,506 --> 00:36:29,363
But I would recommend is that if we can come back

726
00:36:29,363 --> 00:36:31,194
with a specific air service presentation

727
00:36:31,194 --> 00:36:34,794
to give you a Fuller report.

728
00:36:38,576 --> 00:36:40,254
>> That's fine.

729
00:36:40,254 --> 00:36:40,466
>> I want to thank J.P. And your team for this it's a huge

730
00:36:40,466 --> 00:36:43,559
and important undertaking, bring it up to market standards all

731
00:36:43,559 --> 00:36:47,586
of these in the area and your short time with us,

732
00:36:47,586 --> 00:36:49,986
ten months at LAWA.

733
00:36:51,720 --> 00:36:53,300
Congratulations, thank you for the information.

734
00:36:53,300 --> 00:36:53,905
Let's keep it moving.

735
00:36:53,905 --> 00:36:57,586
Are there any other comments or questions?

736
00:36:57,586 --> 00:36:59,586
>> Just one comment.

737
00:36:59,631 --> 00:37:02,578
I also want to stress that we're working

738
00:37:02,578 --> 00:37:05,578
very hard to improve LAWA.

739
00:37:06,900 --> 00:37:08,510
Everything that we're doing in this space program

740
00:37:08,510 --> 00:37:11,348
can be done throughout the rest of the city.

741
00:37:11,348 --> 00:37:13,790
And I've already discussed with Mayor Bass and her staff

742
00:37:13,790 --> 00:37:15,457
how other parts of the city can do this.

743
00:37:15,457 --> 00:37:17,373
The mayor's already directing us to share this

744
00:37:17,373 --> 00:37:18,690
with other parts of the city.

745
00:37:18,690 --> 00:37:20,523
We've already started having those meetings.

746
00:37:20,523 --> 00:37:23,486
So our hope is that these things that we're learning here,

747
00:37:23,486 --> 00:37:25,818
that we're shifting the risk to the private sector

748
00:37:25,818 --> 00:37:27,498
can be pushed throughout the city

749
00:37:27,498 --> 00:37:33,573
and can benefit all of Los Angeles, and not just LAWA,

750
00:37:33,573 --> 00:37:35,746
the mayor is pushing that with their senior staff.

751
00:37:35,746 --> 00:37:38,266
>> Generating the revenue reminds me of the landing fees

752
00:37:38,266 --> 00:37:40,860
of Van Nuys and how we're investing,

753
00:37:40,860 --> 00:37:42,626
we've heard earlier in the morning during the reception

754
00:37:42,626 --> 00:37:44,566
by the environmental planning team how we're continuing

755
00:37:44,566 --> 00:37:46,858
to invest those dollars to improve passenger experience

756
00:37:46,858 --> 00:37:49,858
and experiences for our customers.

757
00:37:53,311 --> 00:37:53,853
>> Well said.

758
00:37:53,853 --> 00:37:55,561
We don't get any Los Angeles tax revenue.

759
00:37:55,561 --> 00:37:56,986
We put money in the general fund.

760
00:37:56,986 --> 00:37:58,183
We rely on the money.

761
00:37:58,183 --> 00:37:59,850
We can earn the money and we can borrow.

762
00:37:59,850 --> 00:38:03,172
And we have the opportunity to generate tens of millions

763
00:38:03,172 --> 00:38:08,572
of dollars of more revenue, that's more jobs, more

764
00:38:16,233 --> 00:38:17,191
Buildings we can build.

765
00:38:17,191 --> 00:38:18,642
More terminals we can.

766
00:38:18,642 --> 00:38:22,660
All that revenue we can use, we don't return money

767
00:38:22,660 --> 00:38:22,986
to shareholders.

768
00:38:22,986 --> 00:38:24,170
We don't pay dividends.

769
00:38:24,170 --> 00:38:27,770
Our dividends get back to-- we're

770
00:38:29,879 --> 00:38:31,254
going to do better at negotiating

771
00:38:31,254 --> 00:38:36,654
with some of our partners and rationalizing our costs.

772
00:38:39,126 --> 00:38:41,240
>> It's just good business, too.

773
00:38:41,240 --> 00:38:43,198
>> If there are no other comments or questions,

774
00:38:43,198 --> 00:38:46,986
the comment period for this and all presentations is now closed.

775
00:38:46,986 --> 00:38:50,560
Moving on to general public comments.

776
00:38:50,560 --> 00:38:54,256
Are there any speakers on non-agenda items?

777
00:38:58,389 --> 00:39:00,281
>> Yes, we do.

778
00:39:00,281 --> 00:39:02,906
>> General public comments must be related to Los Angeles world

779
00:39:02,906 --> 00:39:03,712
airports business.

780
00:39:03,712 --> 00:39:05,879
Please call the speakers.

781
00:39:05,879 --> 00:39:06,792
>> Thank you.

782
00:39:06,792 --> 00:39:12,531
Please line up at the windows in the order your name is called.

783
00:39:12,531 --> 00:39:14,823
Wait until your name is called again before proceeding.

784
00:39:14,823 --> 00:39:16,823
Thank you.

785
00:39:17,549 --> 00:39:21,149
Arun Ramakrishna, Sabirna Hernandez, Maria Ponce,

786
00:39:30,955 --> 00:39:32,955
Sonia Cerrone. --

787
00:39:36,320 --> 00:39:38,320
Sabrina Hernandez.

788
00:39:42,786 --> 00:39:48,158
Please line up at the windows in the order your name is called.

789
00:39:48,158 --> 00:39:51,146
Wait until your name is called again before proceeding.

790
00:39:51,146 --> 00:39:53,546
Please step forward, Arun.

791
00:39:59,950 --> 00:40:02,330
Speak directly into the microphone state your name

792
00:40:02,330 --> 00:40:03,706
and begin your comments.

793
00:40:03,706 --> 00:40:06,619
>> Hello members of the board my name is Arun Ramakrishna.

794
00:40:06,619 --> 00:40:09,860
I am a representative of Unite Here local 11.

795
00:40:09,860 --> 00:40:12,266
We want to alert the board to the use of temporary workers

796
00:40:12,266 --> 00:40:14,146
at airport lounges at LAX.

797
00:40:14,146 --> 00:40:18,786
We have seen instawork workers using multiple Sodexo operator

798
00:40:18,786 --> 00:40:21,526
lounges where Sodexo could have instead hired permanent airport

799
00:40:21,526 --> 00:40:22,260
employees.

800
00:40:22,260 --> 00:40:23,946
We have serious concerns about how

801
00:40:23,946 --> 00:40:26,946
these workers are being paid.

802
00:40:28,190 --> 00:40:30,186
Recently installed work workers at the Qantas Lounge

803
00:40:30,186 --> 00:40:33,792
were paid as little as $24.75 without employers

804
00:40:33,792 --> 00:40:37,796
provided health insurance or a health care stipend of any kind.

805
00:40:37,796 --> 00:40:42,596
We have seen in-store job postings for Seresto--

806
00:40:46,152 --> 00:40:47,819
advertising wages as low as $18 per hour

807
00:40:47,819 --> 00:40:49,354
or below the lax living wage.

808
00:40:49,354 --> 00:40:50,868
Is the workers also faced lawsuits

809
00:40:50,868 --> 00:40:52,576
in California and other contexts alleging

810
00:40:52,576 --> 00:40:55,340
that workers were misclassified as independent contractors.

811
00:40:55,340 --> 00:40:57,886
We are equally concerned about airport access.

812
00:40:57,886 --> 00:41:01,486
We understand that airlines can provide temporary or day pass

813
00:41:01,486 --> 00:41:03,746
access that allows workers into secure areas

814
00:41:03,746 --> 00:41:07,211
without completing their normal permanent processes.

815
00:41:07,211 --> 00:41:09,138
We are concerned that this process

816
00:41:09,138 --> 00:41:12,346
may be overused to maintain a revolving temporary workforce

817
00:41:12,346 --> 00:41:14,223
rather than hiring permanent employees who

818
00:41:14,223 --> 00:41:16,806
complete the normal background check and badging requirements.

819
00:41:16,806 --> 00:41:19,566
We're asking the board to investigate both issues.

820
00:41:19,566 --> 00:41:21,426
Our temporary workers at LAX being

821
00:41:21,426 --> 00:41:23,610
paid the wages required by law?

822
00:41:23,610 --> 00:41:25,826
And our temporary access procedures

823
00:41:25,826 --> 00:41:27,226
being used appropriately?

824
00:41:27,226 --> 00:41:30,386
We've seen these practices in the Sodexo and other Sodexo

825
00:41:30,386 --> 00:41:32,520
lounges.

826
00:41:32,520 --> 00:41:36,252
We believe LAWA should act before using

827
00:41:37,560 --> 00:41:40,656
Instawork or other temporary staffing platforms.

828
00:41:42,196 --> 00:41:44,196
>> Thank you.

829
00:41:44,275 --> 00:41:46,275
Sabrina Hernandez.

830
00:41:56,394 --> 00:41:58,261
>> You can come back.

831
00:41:58,261 --> 00:42:00,261
>> Maria Ponce.

832
00:42:01,494 --> 00:42:03,494
>>

833
00:42:04,138 --> 00:42:06,138
[Speaking Spanish]

834
00:43:32,929 --> 00:43:34,403
[Applause]

835
00:43:34,403 --> 00:43:36,403
>> Sonia Cerron.

836
00:43:44,643 --> 00:43:45,143
>>

837
00:43:45,143 --> 00:43:47,143
[Speaking Spanish]

838
00:45:19,414 --> 00:45:20,842
>> Thank you.

839
00:45:20,842 --> 00:45:27,442
Before I call Sabrina, will the next set of speakers please

840
00:45:30,560 --> 00:45:32,893
line up at the window in the order their name is called.

841
00:45:32,893 --> 00:45:35,143
Wait till your name is called again before proceeding.

842
00:45:35,143 --> 00:45:40,543
That would be Lesley Meza, Jeremy Lazy, Ed Murza--

843
00:45:56,490 --> 00:45:59,884
Sabrina Hernandez, please step up to the lectern.

844
00:45:59,884 --> 00:46:02,284
>> Hello, members of LAWA.

845
00:46:02,540 --> 00:46:04,790
My name is Sabrina and I work at Qantas Lounge at LAX.

846
00:46:04,790 --> 00:46:10,190
I am a member of the union here local 11.

847
00:46:13,666 --> 00:46:15,833
I'm here because Sodexo is not paying us accordingly

848
00:46:15,833 --> 00:46:17,375
with the lax living wage or overtime.

849
00:46:17,375 --> 00:46:19,126
Vacation hours and holidays.

850
00:46:19,126 --> 00:46:22,606
Many of us do not receive health care through Sodexo

851
00:46:22,606 --> 00:46:26,860
because of company's health plan is too expensive.

852
00:46:26,860 --> 00:46:30,886
As workers we did not receive qualifying health,

853
00:46:33,877 --> 00:46:37,306
we are entitled to full cash wage

854
00:46:37,306 --> 00:46:39,706
with currently 3265 per hour.

855
00:46:44,706 --> 00:46:48,306
Sodexo is using the full 32.65 rate

856
00:46:48,306 --> 00:46:53,106
when calculated our overtime, holidays or vacation pay.

857
00:46:53,186 --> 00:46:57,386
Instead the company is calculating and paying

858
00:46:59,113 --> 00:47:01,100
these hours using a lower range wait.

859
00:47:01,100 --> 00:47:05,810
This means workers like me are being shortchanged.

860
00:47:06,860 --> 00:47:09,946
When we work overtime and when we use

861
00:47:09,946 --> 00:47:11,986
benefits that we have earned.

862
00:47:11,986 --> 00:47:15,586
For me, it's missing money matters.

863
00:47:16,994 --> 00:47:18,619
I've worked at the airport for a while,

864
00:47:18,619 --> 00:47:21,430
being paid legal wages I am owed will help to take

865
00:47:21,430 --> 00:47:22,766
care of my family and expenses.

866
00:47:22,766 --> 00:47:24,766
Thank you.

867
00:47:30,478 --> 00:47:32,374
[Applause]

868
00:47:32,374 --> 00:47:33,628
>> Thank you.

869
00:47:33,628 --> 00:47:36,628
Next, we have Leslie Meza.

870
00:47:38,691 --> 00:47:40,316
>> Good morning my name is Leslie Meza.

871
00:47:40,316 --> 00:47:42,306
I represent workers at Flying Food Group

872
00:47:42,306 --> 00:47:44,279
through the union at local 11.

873
00:47:44,279 --> 00:47:46,783
This is our 52nd time speaking to you all regarding bland

874
00:47:46,783 --> 00:47:47,283
foods.

875
00:47:47,283 --> 00:47:50,866
As many of you all know, August 5th we filed another OSHA

876
00:47:50,866 --> 00:47:52,946
complaint against this company.

877
00:47:52,946 --> 00:47:57,126
Alleged unsafe conditions that include a moldy, infested dishes

878
00:47:57,126 --> 00:48:01,766
that Sonia spoke of without the appropriate protective

879
00:48:01,766 --> 00:48:02,266
equipment.

880
00:48:02,266 --> 00:48:07,666
As well as excessive restroom Supplies-- on August 7th,

881
00:48:13,569 --> 00:48:15,819
inspection from Cal OSHA informed us that he was going

882
00:48:15,819 --> 00:48:16,861
to conduct an inspection.

883
00:48:16,861 --> 00:48:24,602
So that day I could observe as it is right under the law --

884
00:48:24,602 --> 00:48:26,624
the company refused consent for the inspector

885
00:48:26,624 --> 00:48:28,666
to access the facility to inspect the conditions.

886
00:48:28,666 --> 00:48:30,338
Let me say that again.

887
00:48:30,338 --> 00:48:33,856
After workers filed a complaint, Bland Foods

888
00:48:33,856 --> 00:48:35,939
refused an inspector from Cal OSHA

889
00:48:35,939 --> 00:48:39,530
to access and conduct an inspection at the facility.

890
00:48:39,530 --> 00:48:42,680
It only allowed an inspector in four days later.

891
00:48:42,680 --> 00:48:44,726
Why would flying food group do that?

892
00:48:44,726 --> 00:48:46,106
What are they trying to hide?

893
00:48:46,106 --> 00:48:48,106
We have never heard of a company in the industry

894
00:48:48,106 --> 00:48:51,314
refusing a government agency access to inspection.

895
00:48:51,314 --> 00:48:53,467
This is the kind of thing we know

896
00:48:53,467 --> 00:48:55,759
happens in developing countries like Honduras or Haiti.

897
00:48:55,759 --> 00:48:57,722
We have never seen the inspector turn away

898
00:48:57,722 --> 00:49:01,906
at a company in La, much less with the license from the city.

899
00:49:01,906 --> 00:49:05,569
Maybe flying food group thinks they can ignore the law, just

900
00:49:05,569 --> 00:49:06,986
like it has ignored workers demand

901
00:49:06,986 --> 00:49:08,278
for safe and decent conditions.

902
00:49:08,278 --> 00:49:13,780
Enough is enough, and LAWA must say enough

903
00:49:15,242 --> 00:49:18,842
is enough to flying food group.

904
00:49:23,292 --> 00:49:26,386
For the, workers delegated to GM yesterday and HR

905
00:49:26,386 --> 00:49:30,706
today because there's no ventilation in the kitchen.

906
00:49:30,706 --> 00:49:32,706
>> Good morning.

907
00:49:33,546 --> 00:49:35,320
My name is Jeremy Blasi.

908
00:49:35,320 --> 00:49:36,903
General counsel for Unite at Local 11.

909
00:49:36,903 --> 00:49:38,319
You might recognize my name for the many letters

910
00:49:38,319 --> 00:49:40,819
that we have sent to this board regarding flying food group.

911
00:49:40,819 --> 00:49:43,666
Under Laura's rules, the burden is

912
00:49:43,666 --> 00:49:47,720
on flying food group to demonstrate the trustworthiness,

913
00:49:47,720 --> 00:49:50,192
and capacity to operate at LAX.

914
00:49:50,192 --> 00:49:54,239
In this license period, flying food group has been cited

915
00:49:54,239 --> 00:49:58,679
or found violation by five different government agencies.

916
00:49:58,679 --> 00:50:00,776
The Bureau of Contract Administration

917
00:50:00,776 --> 00:50:04,602
has found six violations of the airport's minimum wage

918
00:50:04,602 --> 00:50:07,866
at this company or its on site subcontractors

919
00:50:07,866 --> 00:50:09,810
with more violations just uncovered.

920
00:50:09,810 --> 00:50:14,610
Cal OSHA has found 12 citations against the company.

921
00:50:17,247 --> 00:50:21,447
Just to briefly mention some of those.

922
00:50:23,483 --> 00:50:25,566
In May of this year, Cal OSHA issued six citations

923
00:50:25,566 --> 00:50:26,932
against Flying Food Group.

924
00:50:26,932 --> 00:50:29,194
Four of them it deemed serious and several

925
00:50:29,194 --> 00:50:31,586
of those related to the inability of workers

926
00:50:31,586 --> 00:50:35,786
to open refrigerated rooms from the inside.

927
00:50:35,954 --> 00:50:38,946
They could be locked from the outside.

928
00:50:38,946 --> 00:50:41,636
This is an issue that was cited for previously.

929
00:50:41,636 --> 00:50:45,946
It didn't correct it, and led to a near tragedy in January.

930
00:50:45,946 --> 00:50:49,802
One last thing, there are workers here

931
00:50:49,802 --> 00:50:51,536
that aren't concerned about their jobs,

932
00:50:51,536 --> 00:50:53,860
that concern is legitimate.

933
00:50:53,860 --> 00:50:57,286
Should make the worker retention law work.

934
00:50:59,692 --> 00:51:01,946
It should tell them any caterers who

935
00:51:01,946 --> 00:51:04,242
will pick up flying food groups work

936
00:51:04,242 --> 00:51:07,159
and that they should do so soon so that the airlines have

937
00:51:07,159 --> 00:51:10,759
an opportunity for a smooth transition.

938
00:51:17,810 --> 00:51:19,810
>> Dandy Palganatan?

939
00:51:20,260 --> 00:51:22,260
How many variations of your name have you heard?

940
00:51:22,260 --> 00:51:24,260
>> It's been three years.

941
00:51:24,260 --> 00:51:28,226
And they just know me as Dandy.

942
00:51:32,976 --> 00:51:34,976
Good morning.

943
00:51:36,230 --> 00:51:37,856
Senior vice president strategic initiatives.

944
00:51:37,856 --> 00:51:41,122
I'm speaking here regarding a very urgent matter,

945
00:51:41,122 --> 00:51:44,250
and that is depending whose procurement of the Woodley

946
00:51:44,250 --> 00:51:48,272
property at Van Nuys Airport which currently is home

947
00:51:48,272 --> 00:51:50,260
to 300 of our employees.

948
00:51:50,260 --> 00:51:54,306
To be clear, a word has not yet been presented

949
00:51:54,306 --> 00:51:55,658
to the board for action.

950
00:51:55,658 --> 00:51:57,370
That is precisely why we're here today.

951
00:51:57,370 --> 00:51:58,870
The consequences of this procurement

952
00:51:58,870 --> 00:52:00,901
have not yet been publicly discussed.

953
00:52:00,901 --> 00:52:03,740
We believe it is important for the board

954
00:52:03,740 --> 00:52:07,926
to understand what is at stake before any final decision is

955
00:52:07,926 --> 00:52:08,426
presented.

956
00:52:08,426 --> 00:52:13,790
Simply put, this is not a simple lease transaction.

957
00:52:13,790 --> 00:52:17,132
The decision here could have serious consequences

958
00:52:17,132 --> 00:52:18,266
to employees.

959
00:52:18,266 --> 00:52:20,666
Airport operations, surrounding community.

960
00:52:21,466 --> 00:52:24,466
Thank you for your time.

961
00:52:34,353 --> 00:52:35,950
>> Thank you.

962
00:52:35,950 --> 00:52:37,637
Before I call the next speaker, with the next set of speakers

963
00:52:37,637 --> 00:52:45,437
please line up at the windows in the order your name is called .

964
00:52:47,728 --> 00:52:52,528
Doug Wilson, Hector Torres, and Luis Oviero. --

965
00:53:04,546 --> 00:53:08,746
forgive me if I mispronounce your name.

966
00:53:12,110 --> 00:53:12,776
>> Good morning.

967
00:53:12,776 --> 00:53:13,484
My name is Edgar.

968
00:53:13,484 --> 00:53:15,156
I'm the chief business officer.

969
00:53:15,156 --> 00:53:18,599
Clay Lacy has operated the brand new airport for 57 years.

970
00:53:18,599 --> 00:53:20,946
It is the airport's largest employer currently.

971
00:53:20,946 --> 00:53:23,506
The potential award of the Woodley property

972
00:53:23,506 --> 00:53:27,786
threatens to displace more than 300 good paying jobs

973
00:53:27,786 --> 00:53:32,946
and local jobs and a major FAA approved aircraft maintenance

974
00:53:32,946 --> 00:53:33,772
operation.

975
00:53:33,772 --> 00:53:36,772
No public transition, alternate facility,

976
00:53:40,739 --> 00:53:42,822
retention requirements, or reemployment assistance

977
00:53:42,822 --> 00:53:45,559
has been discussed or identified.

978
00:53:45,559 --> 00:53:49,759
The consequences would extend beyond this company.

979
00:53:50,110 --> 00:53:52,816
Hundreds of families and critical aviation services

980
00:53:52,816 --> 00:53:56,560
and the local economy would be affected.

981
00:53:56,560 --> 00:54:02,460
We respectfully ask the board to give these human impacts

982
00:54:02,460 --> 00:54:04,946
a very careful consideration before an irreversible decision

983
00:54:04,946 --> 00:54:07,946
is made here thank you.

984
00:54:16,696 --> 00:54:18,696
>> Doug Wilson.

985
00:54:21,741 --> 00:54:23,366
>> Good morning my name is Doug Wilson.

986
00:54:23,366 --> 00:54:24,426
I'm the head of Fbos for Clay Lacy aviation.

987
00:54:24,426 --> 00:54:26,774
My colleagues have described what is at stake.

988
00:54:26,774 --> 00:54:29,282
I'd like to address why we believe

989
00:54:29,282 --> 00:54:32,386
basic fairness and greater transparency is needed.

990
00:54:32,386 --> 00:54:35,599
The draft lease and Environmental information

991
00:54:35,599 --> 00:54:40,999
released was released after the deadline for proposed questions.

992
00:54:44,598 --> 00:54:46,701
Four months into the RFP process,

993
00:54:46,701 --> 00:54:50,901
only three days before proposals were due,

994
00:54:53,205 --> 00:54:57,114
LAWA prohibited commercial operations at the leasehold.

995
00:54:57,114 --> 00:54:59,676
That Part of few operators like Clay Lacy aviation

996
00:54:59,676 --> 00:55:02,626
to make substantial last minute changes while not similarly

997
00:55:02,626 --> 00:55:08,260
affecting FBO proposals with whom LAWA it's now negotiating.

998
00:55:12,466 --> 00:55:14,633
When LAWA announced his intent to award the property

999
00:55:14,633 --> 00:55:16,966
we immediately requested access to the proposal scoring,

1000
00:55:16,966 --> 00:55:18,504
and evaluation.

1001
00:55:18,504 --> 00:55:20,617
LAWA strangely retracted the award

1002
00:55:20,617 --> 00:55:22,992
without a clear explanation while continuing to negotiate

1003
00:55:22,992 --> 00:55:24,366
exclusively with one proposer.

1004
00:55:24,366 --> 00:55:26,366
Thank you.

1005
00:55:33,778 --> 00:55:35,778
>> Doc Cutchel.

1006
00:55:36,899 --> 00:55:37,566
>> Good morning.

1007
00:55:37,566 --> 00:55:37,651
My name is Scott.

1008
00:55:37,651 --> 00:55:39,503
I'm president of real estate with Clay Lacy.

1009
00:55:39,503 --> 00:55:42,119
You've now heard the consequences and concerns

1010
00:55:42,119 --> 00:55:43,714
regarding this procurement.

1011
00:55:43,714 --> 00:55:47,146
I would like to close with a simple request.

1012
00:55:47,146 --> 00:55:51,346
Please pause any award or lease execution

1013
00:55:51,676 --> 00:55:54,760
until three things occur.

1014
00:55:54,716 --> 00:55:59,516
First, have release the complete proposals, evaluation materials

1015
00:56:01,786 --> 00:56:03,786
and relevant correspondence.

1016
00:56:03,919 --> 00:56:08,719
Second, allow sufficient time for meaningful public review

1017
00:56:09,426 --> 00:56:11,566
and consideration of these materials.

1018
00:56:11,566 --> 00:56:15,166
And third, require a credible plan

1019
00:56:15,754 --> 00:56:18,746
addressing the more than 300 employees whose

1020
00:56:18,746 --> 00:56:21,826
jobs are at risk along with the specialized maintenance

1021
00:56:21,826 --> 00:56:26,405
capabilities that we provide at the airport that will be lost.

1022
00:56:26,405 --> 00:56:31,205
This is not a request for special treatment.

1023
00:56:32,106 --> 00:56:36,306
It is a request for transparency, responsible

1024
00:56:37,200 --> 00:56:38,728
airport stewardship, proper consideration

1025
00:56:38,728 --> 00:56:43,119
of good jobs, proven operational experience, and a long term 57

1026
00:56:43,119 --> 00:56:45,920
year community partnership.

1027
00:56:45,920 --> 00:56:49,138
Please pause this process, release the documents

1028
00:56:49,138 --> 00:56:50,812
and allow public review.

1029
00:56:50,812 --> 00:56:52,812
Thank you.

1030
00:57:02,877 --> 00:57:04,877
>> Héctor Torres.

1031
00:57:05,117 --> 00:57:07,117
>> Good morning, members.

1032
00:57:10,107 --> 00:57:12,110
My name is Hector Torres.

1033
00:57:12,110 --> 00:57:13,443
I've been employed by Clay Lacy.

1034
00:57:13,443 --> 00:57:18,243
I've been with the company over ten years.

1035
00:57:20,113 --> 00:57:21,530
It's been a good place to work at.

1036
00:57:21,530 --> 00:57:24,140
I've been at Van Nuys Airport most of my career.

1037
00:57:24,140 --> 00:57:27,916
I believe due to a RFP process, the lack

1038
00:57:27,916 --> 00:57:31,586
of transparency and fairness of more than 300 good paying jobs

1039
00:57:31,586 --> 00:57:33,639
are at imminent risk.

1040
00:57:33,639 --> 00:57:36,835
But no transition plan in place for the affected employees

1041
00:57:36,835 --> 00:57:37,839
and their families.

1042
00:57:37,839 --> 00:57:40,839
The ongoing Los Angeles-- threatens

1043
00:57:45,227 --> 00:57:47,669
to displace Clay Lacy's aviation, airports largest

1044
00:57:47,669 --> 00:57:52,469
employer and 57 incumbent, and eliminate Van Nuys more

1045
00:57:55,182 --> 00:57:57,557
significant FAA approved aircraft maintenance operations,

1046
00:57:57,557 --> 00:57:59,957
where over 1500 aircraft currently

1047
00:58:01,175 --> 00:58:02,383
receive maintenance services.

1048
00:58:02,383 --> 00:58:06,586
I'm here today because more than 300 local jobs like mine at Van

1049
00:58:06,586 --> 00:58:08,190
Nuys Airport are at risk.

1050
00:58:08,190 --> 00:58:14,190
I respectfully urge the board to pause any final awards,

1051
00:58:17,194 --> 00:58:19,402
and please disclose the scoring process and documents

1052
00:58:19,402 --> 00:58:21,610
and prioritize the protection of over 300 local jobs.

1053
00:58:21,610 --> 00:58:24,610
Thank you for your time.

1054
00:58:29,939 --> 00:58:31,356
>> Before I call the next speaker,

1055
00:58:31,356 --> 00:58:33,814
will the next set of speakers please line up at the windows

1056
00:58:33,814 --> 00:58:38,140
in the order your name is called?

1057
00:58:44,948 --> 00:58:47,348
[Reading names] Luis Oviedo.

1058
00:59:01,290 --> 00:59:03,290
>> Good morning, commissioners.

1059
00:59:05,141 --> 00:59:06,990
My name is Luis Oviedo.

1060
00:59:06,990 --> 00:59:06,340
37 years old, and I live in the East Hollywood

1061
00:59:06,340 --> 00:59:08,423
area of Los Angeles with my wife and two children.

1062
00:59:08,423 --> 00:59:11,826
I've been in the aviation industry for about 14 years now

1063
00:59:11,826 --> 00:59:16,160
and I've been with Glaze Aviation as five years

1064
00:59:16,160 --> 00:59:19,660
as a maintenance planner for our maintenance department.

1065
00:59:19,660 --> 00:59:21,159
During this time, I have continued

1066
00:59:21,159 --> 00:59:24,311
to grow professionally, take new responsibilities in advance

1067
00:59:24,311 --> 00:59:25,213
in my career.

1068
00:59:25,213 --> 00:59:27,378
I take pride in the work we do.

1069
00:59:27,378 --> 00:59:33,200
I look forward to continuing my career with Clay Lacy aviation.

1070
00:59:33,200 --> 00:59:37,146
Last year clay Lacy awarded me with a scholarship

1071
00:59:37,146 --> 00:59:38,234
to continue my education.

1072
00:59:38,234 --> 00:59:39,986
This opportunity has allowed me to pursue my goals

1073
00:59:39,986 --> 00:59:41,202
and invest in my future.

1074
00:59:41,202 --> 00:59:45,566
This reflects the company's commitment to supporting its

1075
00:59:45,566 --> 00:59:47,566
employees .

1076
00:59:48,989 --> 00:59:53,643
I'm here today because more than 300 jobs including mine

1077
00:59:53,643 --> 00:59:54,935
at Van Nuys Airport is at risk.

1078
00:59:54,935 --> 00:59:57,352
These jobs represent families and members of our community

1079
00:59:57,352 --> 00:59:58,306
who depend on them.

1080
00:59:58,306 --> 01:00:02,106
I respectfully ask the board to pause any final decisions

1081
01:00:02,106 --> 01:00:05,526
and carefully consider the impact that this action could

1082
01:00:05,526 --> 01:00:08,356
have on more than 300 employees, and families

1083
01:00:08,356 --> 01:00:09,714
who might be affected.

1084
01:00:09,714 --> 01:00:12,714
Thank you for your time.

1085
01:00:19,227 --> 01:00:21,227
>> Thank you.

1086
01:00:22,218 --> 01:00:24,218
Bills.

1087
01:00:28,152 --> 01:00:29,538
>> Good morning.

1088
01:00:29,538 --> 01:00:30,925
My name is Steve.

1089
01:00:30,925 --> 01:00:31,309
I'm a business representative with Iodbc local 18.

1090
01:00:31,309 --> 01:00:33,142
Here on behalf of the highly skilled workers

1091
01:00:33,142 --> 01:00:34,681
testing the APM system at.

1092
01:00:34,681 --> 01:00:36,806
We have come before this body in multiple occasions

1093
01:00:36,806 --> 01:00:40,346
to sound the alarm about Lynx and Alstom's violation

1094
01:00:40,346 --> 01:00:43,882
of the LA, which have denied our workers the community,

1095
01:00:43,882 --> 01:00:46,386
and we say middle class?

1096
01:00:46,386 --> 01:00:49,146
Sustaining wages in high quality health care

1097
01:00:49,146 --> 01:00:51,660
guaranteed by that agreement.

1098
01:00:51,660 --> 01:00:54,162
Your contract with Lynx requires compliance with the LA.

1099
01:00:54,162 --> 01:00:58,126
An obligation that has been completely ignored

1100
01:00:58,126 --> 01:00:59,286
by Austin and Lynx.

1101
01:00:59,286 --> 01:01:01,586
It is not just the Union saying this.

1102
01:01:01,586 --> 01:01:04,843
The LA arbitrator over six months ago

1103
01:01:04,843 --> 01:01:07,843
ordered them to pay up.

1104
01:01:08,861 --> 01:01:12,461
Not only are they refusing comply,

1105
01:01:15,656 --> 01:01:17,406
but they both sued the union to invalidate

1106
01:01:17,406 --> 01:01:19,728
the results of the bargain for arbitration process.

1107
01:01:19,728 --> 01:01:22,145
This mistreatment of workers is endangering the completion

1108
01:01:22,145 --> 01:01:23,822
of this project, workers with years

1109
01:01:23,822 --> 01:01:25,447
of experience on this train are leaving

1110
01:01:25,447 --> 01:01:26,906
for better paying benefits.

1111
01:01:26,906 --> 01:01:30,854
That project expertise is gone and it's not coming back.

1112
01:01:30,854 --> 01:01:33,176
It's only going to get worse.

1113
01:01:33,176 --> 01:01:35,930
Not to mention that when your guests are actually

1114
01:01:35,930 --> 01:01:40,130
riding the train as Lynx and Alstom

1115
01:01:40,621 --> 01:01:43,621
continue to shortchange the workers.

1116
01:01:46,456 --> 01:01:49,837
Does LAWA intend to by and do while Lynx

1117
01:01:49,837 --> 01:01:50,879
ignore these protections?

1118
01:01:50,879 --> 01:01:52,421
If you aren't going to make Lynx pay,

1119
01:01:52,421 --> 01:01:55,386
the city needs to pay these workers what they're owed.

1120
01:01:55,386 --> 01:01:57,386
Thank you again.

1121
01:02:01,270 --> 01:02:03,270
Steve Bills.

1122
01:02:04,800 --> 01:02:10,680
>> Hi, it is an honor to be before of you today.

1123
01:02:10,742 --> 01:02:16,660
I am so enlivened to be participating in this city's

1124
01:02:16,660 --> 01:02:20,506
political process recently having been at a Los Angeles

1125
01:02:20,506 --> 01:02:25,236
Department of Water and Power Board meeting which was my first

1126
01:02:25,236 --> 01:02:27,636
and making incredible connections.

1127
01:02:28,358 --> 01:02:33,158
And I think an impression and an effort

1128
01:02:35,453 --> 01:02:39,306
mobilize Los Angeles to have a foundation, a strong cornerstone

1129
01:02:39,306 --> 01:02:41,706
of a new era.

1130
01:02:43,204 --> 01:02:50,404
I believe it was girls build you guys had a program with,

1131
01:02:53,916 --> 01:02:56,458
and I really see the youth as a massive point of development.

1132
01:02:56,458 --> 01:02:59,770
One thing that is super exciting,

1133
01:02:59,770 --> 01:03:02,630
I have been connecting with Aqmd and really

1134
01:03:02,630 --> 01:03:04,130
want to try to connect with you guys

1135
01:03:04,130 --> 01:03:09,530
in this community over an active air pollution mitigation

1136
01:03:18,240 --> 01:03:23,424
initiative, which I believe AQMD will most likely want

1137
01:03:24,776 --> 01:03:26,337
to hear more about.

1138
01:03:26,337 --> 01:03:26,925
And another one is a program that I'm

1139
01:03:26,925 --> 01:03:28,842
proposing called Space Port Los Angeles, which

1140
01:03:28,842 --> 01:03:32,706
can mobilize downtown LA and LAX in transportation

1141
01:03:32,706 --> 01:03:36,906
expansion of logistics and industry in general.

1142
01:03:37,258 --> 01:03:38,706
God bless you guys.

1143
01:03:38,706 --> 01:03:40,706
Thank you.

1144
01:03:47,490 --> 01:03:49,490
>> Esperanza Maciel.

1145
01:03:55,135 --> 01:03:55,850
>>

1146
01:03:55,850 --> 01:03:57,850
[Speaking Spanish]

1147
01:05:39,613 --> 01:05:41,613
>> Kenya Nazario.

1148
01:05:46,238 --> 01:05:47,475
>>

1149
01:05:47,475 --> 01:05:49,475
[Speaking Spanish]

1150
01:07:17,326 --> 01:07:19,326
>> Susan Gutierrez.

1151
01:07:24,453 --> 01:07:25,786
>> My name is Suzanne Gutierrez.

1152
01:07:25,786 --> 01:07:25,793
I'm a co-founder of Food Fighters United,

1153
01:07:25,793 --> 01:07:27,145
and I've lived in the pocket right next to the Van Nuys

1154
01:07:27,145 --> 01:07:28,538
airport for 23 years.

1155
01:07:28,538 --> 01:07:32,138
In March 2026 PM Fighters United requested

1156
01:07:32,386 --> 01:07:40,186
to be placed on the May agenda the date came with no response.

1157
01:07:43,415 --> 01:07:45,498
Then in June after the meeting had already passed,

1158
01:07:45,498 --> 01:07:47,759
Van Nuys manager Jacob Hague emailed us to say no.

1159
01:07:47,759 --> 01:07:49,226
It's the board aware of this?

1160
01:07:49,226 --> 01:07:51,446
The community has to present a mitigation wall that

1161
01:07:51,446 --> 01:07:54,722
are significantly proven to reduce toxic fumes and ear

1162
01:07:54,722 --> 01:07:56,476
piercing noise impacting our neighborhood,

1163
01:07:56,476 --> 01:07:59,766
and this wall would be fully funded by the airport's tenants

1164
01:07:59,766 --> 01:08:01,930
in exchange for a standard short term lease

1165
01:08:01,930 --> 01:08:04,402
to amortize the expense contrary to Mr.

1166
01:08:04,402 --> 01:08:06,676
Ackerman and Hanks, false and defamatory accusations

1167
01:08:06,676 --> 01:08:08,143
of the tenant attempting to extend,

1168
01:08:08,143 --> 01:08:10,180
it's the community that approached the tenant

1169
01:08:10,180 --> 01:08:12,546
and begged for this critically needed mitigation.

1170
01:08:12,546 --> 01:08:17,594
Instead, is pushing forward with an unvetted incomplete land

1171
01:08:17,594 --> 01:08:20,180
swap, now rebranded as rezoning.

1172
01:08:20,180 --> 01:08:23,370
This plan will not solve the problem.

1173
01:08:23,370 --> 01:08:26,106
A reality that Rainbow Young from Aqmd

1174
01:08:26,106 --> 01:08:28,610
confirmed to the Daily News, and rezoning

1175
01:08:28,610 --> 01:08:32,250
will make it worse by increasing adverse impact on my community

1176
01:08:32,250 --> 01:08:34,786
by moving even more transient jets directly

1177
01:08:34,786 --> 01:08:36,316
across from our neighborhood.

1178
01:08:36,316 --> 01:08:39,206
This is the exact opposite that Lawa falsely

1179
01:08:39,206 --> 01:08:43,346
claims in pretending to reduce jet lag on the west side.

1180
01:08:43,346 --> 01:08:45,346
Thank you.

1181
01:08:46,786 --> 01:08:51,586
>> Madam chair, concludes our speakers for general comment.

1182
01:08:57,989 --> 01:08:59,822
>> The general comment period is now closed.

1183
01:08:59,822 --> 01:09:04,220
Are there any neighborhood council speakers today?

1184
01:09:07,861 --> 01:09:08,916
>> No.

1185
01:09:08,916 --> 01:09:09,841
>> Thank you.

1186
01:09:09,841 --> 01:09:11,633
The comment period for Neighborhood Council

1187
01:09:11,633 --> 01:09:11,636
is now closed.

1188
01:09:11,636 --> 01:09:11,642
Moving to the approval of minutes.

1189
01:09:11,642 --> 01:09:14,146
Could I have a motion to approve the minutes for July 9th,

1190
01:09:14,146 --> 01:09:16,146
2026 special meeting?

1191
01:09:16,306 --> 01:09:18,706
>> I'll make a motion.

1192
01:09:23,349 --> 01:09:25,749
>> Thank you, Commissioner Labeau.

1193
01:09:28,522 --> 01:09:30,304
Commissioner Roxboro second.

1194
01:09:30,304 --> 01:09:34,504
All those in favor please say aye.

1195
01:09:35,570 --> 01:09:37,570
Any opposed?

1196
01:09:39,190 --> 01:09:41,590
The ayes have it.

1197
01:09:42,940 --> 01:09:47,140
Next on our business our consent items.

1198
01:09:49,790 --> 01:09:51,479
Commissioners, staff requests that's

1199
01:09:52,150 --> 01:09:52,160
the item number four regarding the lease with aircraft service

1200
01:09:52,160 --> 01:09:54,286
International be pulled off the agenda.

1201
01:09:54,286 --> 01:09:55,786
And please be reminded that if there

1202
01:09:55,786 --> 01:09:57,769
are any speakers on any consent item,

1203
01:09:57,769 --> 01:09:59,686
that item will be pulled from the consent list

1204
01:09:59,686 --> 01:10:02,260
so that we can hear from the speakers.

1205
01:10:02,260 --> 01:10:05,146
Are there any speakers on any of the consent items?

1206
01:10:05,146 --> 01:10:08,146
>> Yes, item 19, and for item 38.

1207
01:10:14,586 --> 01:10:16,586
>> Only 19.

1208
01:10:17,655 --> 01:10:19,655
Thank you.

1209
01:10:19,701 --> 01:10:25,701
Does any commissioner want to pull an item for discussion?

1210
01:10:29,718 --> 01:10:34,518
With that, we have items 1 through 3, and items 5

1211
01:10:41,828 --> 01:10:43,828
through 18, items 20 through 33.

1212
01:10:48,969 --> 01:10:51,177
Could I have a motion to approve those consent items?

1213
01:10:51,177 --> 01:10:53,177
>> So moved.

1214
01:10:56,999 --> 01:10:58,540
>> Second.

1215
01:10:58,540 --> 01:10:59,870
>> Thank you.

1216
01:10:59,870 --> 01:11:02,247
All those in favor, please say aye.

1217
01:11:02,247 --> 01:11:04,614
Those opposed, say no.

1218
01:11:04,614 --> 01:11:06,978
The ayes have it.

1219
01:11:06,978 --> 01:11:09,978
The consent items are approved.

1220
01:11:10,198 --> 01:11:14,398
We will now go to item number 19.

1221
01:11:22,420 --> 01:11:24,420
>> Suzanne Gutierrez.

1222
01:11:25,475 --> 01:11:31,475
>> We will ask the presentation to take place with --

1223
01:11:32,372 --> 01:11:37,172
>> This was pulled because there is a speaker.

1224
01:11:40,809 --> 01:11:43,209
>> Yes, for item number 19.

1225
01:11:43,637 --> 01:11:44,876
>> Hello.

1226
01:11:44,876 --> 01:11:47,359
My name is Suzanne Gutierrez I'm co-founder

1227
01:11:47,359 --> 01:11:47,946
of Young Fighters, a community advocacy group helping others

1228
01:11:47,946 --> 01:11:50,458
with the noise and air pollution from the Van Nuys airport.

1229
01:11:50,458 --> 01:11:53,180
Is item number 19 should have been pulled from the agenda.

1230
01:11:53,180 --> 01:11:55,606
It is grossly irresponsible for this board

1231
01:11:55,606 --> 01:12:00,406
to approve transfer without a report identifying what's

1232
01:12:00,788 --> 01:12:02,746
better than years long environmental complaints

1233
01:12:02,746 --> 01:12:03,916
associated with the lease.

1234
01:12:03,916 --> 01:12:06,886
Those complaints come from adjacent businesses residents

1235
01:12:06,886 --> 01:12:09,778
and even the FAA air traffic control tower personnel.

1236
01:12:09,778 --> 01:12:13,146
And yet there's no mention of these consideration

1237
01:12:13,146 --> 01:12:14,856
in Laura's report.

1238
01:12:14,856 --> 01:12:18,780
Before approving Castle and Crux right to transfer the lease,

1239
01:12:18,780 --> 01:12:20,286
this board to first identify what mitigation measures

1240
01:12:20,286 --> 01:12:22,639
can be included in the deal.

1241
01:12:22,639 --> 01:12:26,839
Is receiving a one time transfer with $600,000,

1242
01:12:27,274 --> 01:12:32,866
to been provided to this board to identify how that money can

1243
01:12:32,866 --> 01:12:34,979
be improved the property and mitigate its harm.

1244
01:12:34,979 --> 01:12:39,426
Where is the report that identifies that Castle met all

1245
01:12:39,426 --> 01:12:41,920
of its investment obligations?

1246
01:12:41,920 --> 01:12:43,406
If you look back at Castle and Cook's original proposal

1247
01:12:43,406 --> 01:12:45,522
in 2009, the mitigation barrier they

1248
01:12:45,522 --> 01:12:47,439
proposed for the northern portion implemented.

1249
01:12:47,439 --> 01:12:50,946
Where is the analysis of how this transfer impacts Fairfield?

1250
01:12:50,946 --> 01:12:53,922
How this competition pricing at the airport considering this

1251
01:12:53,922 --> 01:12:57,826
will give signature over 62% of the real estate of Van Nuys?

1252
01:12:57,826 --> 01:13:03,226
I'm requesting that this board table this item, competition

1253
01:13:03,506 --> 01:13:06,146
and determine what public benefit and operation

1254
01:13:06,146 --> 01:13:09,146
protections should accompany this transfer.

1255
01:13:11,383 --> 01:13:13,383
Thank you.

1256
01:13:17,139 --> 01:13:17,751
>> Thank you.

1257
01:13:17,751 --> 01:13:22,148
Are there any other speakers on this item?

1258
01:13:22,148 --> 01:13:22,786
>> No.

1259
01:13:22,786 --> 01:13:22,924
>> The comment period for this item is now closed.

1260
01:13:22,924 --> 01:13:24,591
Any questions or comments from the board

1261
01:13:24,591 --> 01:13:26,991
on this particular item?

1262
01:13:30,480 --> 01:13:31,965
If there are no further questions or comments.

1263
01:13:31,965 --> 01:13:36,765
Can I have a motion to approve item 19?

1264
01:13:39,476 --> 01:13:40,483
>> Moved.

1265
01:13:40,483 --> 01:13:42,483
>> Second.

1266
01:13:48,978 --> 01:13:50,283
>> Second.

1267
01:13:50,283 --> 01:13:52,741
>> Thank you, Commissioner Lebow has moved and Commissioner

1268
01:13:52,741 --> 01:13:58,741
Roxborough has seconded all those in favor, please say aye.

1269
01:14:04,326 --> 01:14:07,820
[Members voting] The ayes have it.

1270
01:14:07,820 --> 01:14:09,820
Item 19 is approved.

1271
01:14:10,128 --> 01:14:16,550
And now, we will move on to the regular agenda.

1272
01:14:16,550 --> 01:14:18,550
Regular items.

1273
01:14:21,268 --> 01:14:21,893
Item number 34.

1274
01:14:21,893 --> 01:14:23,726
We will ask Mr. Christensen to step forward.

1275
01:14:23,726 --> 01:14:26,726
>> Good morning Vice President Aramayo.

1276
01:14:31,352 --> 01:14:34,223
I'm mike Christensen, chief airport development officer.

1277
01:14:34,223 --> 01:14:36,515
I'm before you this morning requesting an appropriation

1278
01:14:36,515 --> 01:14:38,132
of $300 million to fund the continuation of the design

1279
01:14:38,132 --> 01:14:41,990
and construction of the terminal five project between now

1280
01:14:41,990 --> 01:14:45,141
and issuance of a former guaranteed maximum price.

1281
01:14:45,141 --> 01:14:49,341
We would like to start this presentation

1282
01:14:51,720 --> 01:14:54,977
by providing an update on the project and some context

1283
01:14:54,977 --> 01:14:58,904
for this request, starting with the rundown by Assistant General

1284
01:14:58,904 --> 01:14:59,862
Manager Courtney Moore.

1285
01:14:59,862 --> 01:15:02,195
Who is also the project manager and the principal source

1286
01:15:02,195 --> 01:15:06,395
of Project Energy, as you will see.

1287
01:15:11,130 --> 01:15:12,492
>> Thank you, Mike.

1288
01:15:12,492 --> 01:15:13,182
This is the first time co-presenting on the new podium.

1289
01:15:13,182 --> 01:15:13,189
We'll do a bit of a dance.

1290
01:15:13,189 --> 01:15:14,446
Good morning, vice President Aramayo, Commissioner.

1291
01:15:14,446 --> 01:15:16,986
John shared that we would be giving you a bit of an update

1292
01:15:16,986 --> 01:15:19,219
on terminal five and we're very pleased to do so.

1293
01:15:19,219 --> 01:15:23,546
We have been design and have had meetings daily to bring you

1294
01:15:23,546 --> 01:15:24,799
what we're about to show you.

1295
01:15:24,799 --> 01:15:27,532
Before we get into some of the renderings, which

1296
01:15:27,532 --> 01:15:28,949
I know is someone's favorite part,

1297
01:15:28,949 --> 01:15:32,806
this slide acts as a bit of an orientation for us in the work

1298
01:15:32,806 --> 01:15:33,676
that we're doing.

1299
01:15:33,676 --> 01:15:36,660
One of the last times that you saw it,

1300
01:15:36,660 --> 01:15:40,866
you saw that in 2024, our overall experience rating

1301
01:15:41,286 --> 01:15:44,146
was 3.59 from an Airports Council

1302
01:15:44,146 --> 01:15:45,706
international perspective.

1303
01:15:45,706 --> 01:15:48,378
Which put us last against our benchmark peers.

1304
01:15:48,378 --> 01:15:50,881
Since then we have enacted many different initiatives.

1305
01:15:50,881 --> 01:15:53,546
We have brought up the transformation office

1306
01:15:53,546 --> 01:15:56,660
and showing you some of our custodial optimizations

1307
01:15:56,660 --> 01:15:57,882
elevating our cleanliness scores faster

1308
01:15:57,882 --> 01:16:00,660
than any of those benchmark airports.

1309
01:16:00,660 --> 01:16:02,906
We have installed many new different technological

1310
01:16:02,906 --> 01:16:05,412
solutions to enhance passenger processing

1311
01:16:05,412 --> 01:16:08,598
so our international arrival and wait times

1312
01:16:08,598 --> 01:16:10,598
decreased for about 35%.

1313
01:16:11,296 --> 01:16:13,460
We've had a lot of new comfortable seating

1314
01:16:13,460 --> 01:16:15,778
and new power to that city, enhancing our amenities

1315
01:16:15,778 --> 01:16:16,450
and comfort.

1316
01:16:16,450 --> 01:16:18,692
If you look at a lot of the quotes that

1317
01:16:18,692 --> 01:16:21,938
are on the screen from our passengers and our Skytrax

1318
01:16:21,938 --> 01:16:24,206
audits, you will see that to continue

1319
01:16:24,206 --> 01:16:25,846
to move the needle much of the work

1320
01:16:25,846 --> 01:16:27,746
rests within the capital projects.

1321
01:16:27,746 --> 01:16:30,106
Having ambiance that is still highly variable

1322
01:16:30,106 --> 01:16:32,586
and having a data esthetic and an esthetic

1323
01:16:32,586 --> 01:16:34,906
that does not reflect Los Angeles.

1324
01:16:34,906 --> 01:16:38,506
Shortly after, we shared with you

1325
01:16:39,580 --> 01:16:41,266
the different consumer studies that

1326
01:16:41,266 --> 01:16:43,126
understands what passengers are anticipating

1327
01:16:43,126 --> 01:16:44,966
when they come to Los Angeles.

1328
01:16:44,966 --> 01:16:47,174
What are those perceptions that they have of the city

1329
01:16:47,174 --> 01:16:49,706
and how do they best tell their story.

1330
01:16:49,706 --> 01:16:51,993
The city of thousands of stories we also

1331
01:16:51,993 --> 01:16:54,979
share that there were too many categories of passenger

1332
01:16:54,979 --> 01:16:57,586
perceptions for us to be able to tell just one

1333
01:16:57,586 --> 01:16:59,858
story in our airport.

1334
01:16:59,858 --> 01:17:01,986
You would reflect those different themes

1335
01:17:01,986 --> 01:17:03,890
that our passengers shared.

1336
01:17:03,890 --> 01:17:06,566
They were expecting to see when they visited the city.

1337
01:17:06,566 --> 01:17:09,890
To do that, we have different levels of capital investment.

1338
01:17:09,890 --> 01:17:12,926
On the slide that you'll see in front of you,

1339
01:17:12,926 --> 01:17:16,786
we've started the work with our central terminal Area Arrivals

1340
01:17:16,786 --> 01:17:20,712
project, introducing some color, a fresh new esthetic, new

1341
01:17:20,712 --> 01:17:23,136
lighting around the campus, enhancing our wayfinding

1342
01:17:23,136 --> 01:17:24,594
and making it easier for passengers

1343
01:17:24,594 --> 01:17:30,594
to find their way to and from the connecting destinations.

1344
01:17:32,474 --> 01:17:35,527
A couple of board meetings ago, you saw the enhancements

1345
01:17:35,527 --> 01:17:35,535
that we were bringing to Tom Bradley International.

1346
01:17:35,535 --> 01:17:35,946
That's Pre-security and reflecting

1347
01:17:35,946 --> 01:17:38,426
the Hollywood esthetic and the terminal four

1348
01:17:38,426 --> 01:17:41,406
had been in construction and we added some additional elements

1349
01:17:41,406 --> 01:17:43,146
and sense of place as we were going

1350
01:17:43,146 --> 01:17:46,866
through that project with our American Airlines partners.

1351
01:17:46,866 --> 01:17:48,276
You've seen some of the terminals

1352
01:17:48,276 --> 01:17:50,532
have not proposed enhancements.

1353
01:17:50,532 --> 01:17:52,586
Terminal five produces a unique opportunity

1354
01:17:52,586 --> 01:17:54,786
because it is a complete reconstruction.

1355
01:17:54,786 --> 01:17:58,371
A complete reconstruction we shared with you

1356
01:17:58,371 --> 01:18:00,386
really reflects the vibrancy and the energy

1357
01:18:00,386 --> 01:18:02,980
of downtown Los Angeles.

1358
01:18:02,980 --> 01:18:04,216
It's an opportunity for us to celebrate

1359
01:18:04,216 --> 01:18:09,252
the urbanism the skyline and all of the vibrancy and the fun

1360
01:18:09,252 --> 01:18:10,832
that is the city.

1361
01:18:10,832 --> 01:18:12,678
Before we show you the rendering it's

1362
01:18:12,678 --> 01:18:15,681
always nice to remind you where terminal five came from.

1363
01:18:15,681 --> 01:18:18,298
Terminal five that is time 40 years ago

1364
01:18:18,298 --> 01:18:20,772
was one of the flagship terminals that LAX had.

1365
01:18:20,772 --> 01:18:23,271
Used to have some palm trees in their.

1366
01:18:23,271 --> 01:18:26,426
It was branded as one of the locations of sense of place,

1367
01:18:26,426 --> 01:18:29,146
but that was many years ago, and it has

1368
01:18:29,146 --> 01:18:30,766
followed that data esthetic.

1369
01:18:30,766 --> 01:18:34,366
When we have reintroduced terminal five,

1370
01:18:35,319 --> 01:18:38,154
you will see a terminal that is the first on the west coast that

1371
01:18:38,154 --> 01:18:40,658
is built with Skytrax five star criteria.

1372
01:18:40,658 --> 01:18:42,791
There are only two other terminals

1373
01:18:42,791 --> 01:18:44,166
that get to hold that designation

1374
01:18:44,166 --> 01:18:45,866
in the country at the moment.

1375
01:18:45,866 --> 01:18:49,626
You will have a terminal that introduces larger widebody

1376
01:18:49,626 --> 01:18:52,266
capabilities you'll have a much more efficient terminal

1377
01:18:52,266 --> 01:18:55,239
from its baggage handling system and its functionality you'll

1378
01:18:55,239 --> 01:19:00,376
have modernized security lanes, yes for efficiency and security

1379
01:19:00,376 --> 01:19:02,459
but also for the satisfaction of the officers that

1380
01:19:02,459 --> 01:19:03,209
are working there.

1381
01:19:03,209 --> 01:19:05,999
You'll have a terminal that has fully maximized and optimized

1382
01:19:05,999 --> 01:19:10,199
around commercial opportunities for our business partners.

1383
01:19:17,612 --> 01:19:19,654
You'll also have levels of service and a building

1384
01:19:19,654 --> 01:19:19,660
that's been sized completely around circulation

1385
01:19:19,660 --> 01:19:19,670
and how many square feet we should allocate per passenger

1386
01:19:19,670 --> 01:19:22,450
based on their activity you'll have new levels of amenity

1387
01:19:22,450 --> 01:19:24,282
and comfort and we wouldn't be Los Angeles

1388
01:19:24,282 --> 01:19:26,839
if we weren't saying that you'll have new entertainment

1389
01:19:26,839 --> 01:19:27,572
offerings.

1390
01:19:27,572 --> 01:19:31,172
When you walk into terminal five,

1391
01:19:38,782 --> 01:19:40,282
you'll see vaulted ceilings in a way

1392
01:19:40,282 --> 01:19:40,289
that you'll only see in Tom Bradley.

1393
01:19:40,289 --> 01:19:40,299
But in a way that's new to our domestic terminals.

1394
01:19:40,299 --> 01:19:41,738
You'll be greeted by the skyline of downtown Los Angeles,

1395
01:19:41,738 --> 01:19:43,905
of course with the mountain range in the background.

1396
01:19:43,905 --> 01:19:45,384
When you come through security, you

1397
01:19:45,384 --> 01:19:48,260
will see the Griffith Park Observatory reflected right here

1398
01:19:48,260 --> 01:19:50,296
in our own Los Angeles International Airport.

1399
01:19:50,296 --> 01:19:52,930
Complete with new shows every 15 minutes

1400
01:19:52,930 --> 01:19:54,951
to immerse you in the city, but also

1401
01:19:54,951 --> 01:19:57,326
for all of our business partners that are in the terminal

1402
01:19:57,326 --> 01:20:00,946
to keep our passengers seated, wanting to eat or maybe

1403
01:20:00,946 --> 01:20:03,639
drink a little and looking down at the shopping opportunities.

1404
01:20:03,639 --> 01:20:05,434
All lines of sight have been maximized

1405
01:20:05,434 --> 01:20:07,716
in this terminal for greatest commercial performance.

1406
01:20:07,716 --> 01:20:10,116
You will come downstairs and you'll

1407
01:20:10,116 --> 01:20:15,678
be greeted by P22, mountain lion that we pay respects to as well

1408
01:20:15,678 --> 01:20:17,346
as with Griffith Park.

1409
01:20:17,346 --> 01:20:19,457
Will be unveiling around the same time.

1410
01:20:19,457 --> 01:20:23,657
And as you continue down the concourse,

1411
01:20:26,922 --> 01:20:29,132
you'll get to enjoy Grand Central Market

1412
01:20:29,132 --> 01:20:30,965
just like you would if you were walking down

1413
01:20:30,965 --> 01:20:30,968
downtown Los Angeles.

1414
01:20:30,968 --> 01:20:30,977
When you get to the end of the concourse,

1415
01:20:30,977 --> 01:20:33,844
you're going to see a first in its kind it's a vanishing edge.

1416
01:20:33,844 --> 01:20:35,386
Where you can see through that window

1417
01:20:35,386 --> 01:20:38,396
right there it's nothing here you don't see jet bridges,

1418
01:20:38,396 --> 01:20:39,746
you don't see equipment.

1419
01:20:39,746 --> 01:20:42,934
It's positioned so you have this overlook into the runway

1420
01:20:42,934 --> 01:20:44,266
and you see aircrafts moving.

1421
01:20:44,266 --> 01:20:47,703
You'll get a bit of the arts district from a brewery,

1422
01:20:47,703 --> 01:20:50,246
then you'll take the stairs up and we will not

1423
01:20:50,246 --> 01:20:51,742
be reflecting downtown Los Angeles

1424
01:20:51,742 --> 01:20:55,506
if we didn't do so with our own rooftop lounge,

1425
01:20:55,506 --> 01:20:57,431
complete with entertainment offerings.

1426
01:20:57,431 --> 01:21:01,660
And we're excited that we've been working on this design,

1427
01:21:01,660 --> 01:21:07,348
we want to ensure that this is the right thing for LAWA

1428
01:21:07,348 --> 01:21:11,417
from a business perspective as well, which

1429
01:21:11,417 --> 01:21:13,125
is why we're going to invite Mike back up

1430
01:21:13,125 --> 01:21:15,208
to share a little bit of the construction of where

1431
01:21:15,208 --> 01:21:18,786
we are with this business deal.

1432
01:21:18,786 --> 01:21:20,786
>> Thank you, Courtney.

1433
01:21:23,992 --> 01:21:26,242
The project is being delivered faster than any project

1434
01:21:26,242 --> 01:21:28,325
we have ever delivered of this type and this size,

1435
01:21:28,325 --> 01:21:34,325
and in order to change-- we've talked about the fundamentally

1436
01:21:35,933 --> 01:21:39,341
different Kind of terminal we're delivering,

1437
01:21:39,341 --> 01:21:42,941
we're needing to deliver this differently.

1438
01:21:42,982 --> 01:21:44,690
We have two active construction locations

1439
01:21:44,690 --> 01:21:46,946
that it takes to deliver this project.

1440
01:21:46,946 --> 01:21:49,390
The first is the terminal five site,

1441
01:21:49,390 --> 01:21:51,194
the second is we love creating acronyms.

1442
01:21:51,194 --> 01:21:57,794
We have an acronym we call OCR, and that's offsite construction

1443
01:22:03,364 --> 01:22:03,989
and relocation.

1444
01:22:03,989 --> 01:22:03,998
Those are two sites that are leaving this project.

1445
01:22:03,998 --> 01:22:04,125
This is a view of we have these on camera

1446
01:22:04,125 --> 01:22:06,409
and we will have some really phenomenal time lapses.

1447
01:22:06,409 --> 01:22:07,826
We're going to be able to show you

1448
01:22:07,826 --> 01:22:11,974
in a few years the head house site

1449
01:22:11,974 --> 01:22:13,879
and the actual terminal five site.

1450
01:22:13,879 --> 01:22:16,466
There's a lot of concrete going in right now

1451
01:22:16,466 --> 01:22:18,866
and the steel is going up for the head house as we speak.

1452
01:22:18,866 --> 01:22:20,449
Miles of utilities are being installed

1453
01:22:20,449 --> 01:22:21,586
for every type of utility.

1454
01:22:21,586 --> 01:22:25,186
Chilled and heated water, fire water,

1455
01:22:25,696 --> 01:22:29,660
potable water and lots of it and electrical infrastructure

1456
01:22:29,660 --> 01:22:29,591
going in.

1457
01:22:29,591 --> 01:22:33,980
If you look at the bottom right, the historic tunnel

1458
01:22:33,980 --> 01:22:33,882
is preserved.

1459
01:22:33,882 --> 01:22:36,626
That will be part of the new terminal as well.

1460
01:22:36,626 --> 01:22:39,260
>> We're just replacing utilities?

1461
01:22:44,671 --> 01:22:45,629
T5 had utilities prior.

1462
01:22:45,629 --> 01:22:48,400
These just were more modernized pieces of infrastructure?

1463
01:22:48,400 --> 01:22:50,404
>> Newer and right sized.

1464
01:22:54,544 --> 01:22:56,100
And modern configurations, there were

1465
01:22:56,100 --> 01:22:59,299
a lot of utilities in there-- this

1466
01:22:59,299 --> 01:23:02,893
was basically 70 year old utility structure

1467
01:23:02,893 --> 01:23:04,101
that was there to begin with.

1468
01:23:04,101 --> 01:23:04,111
Replacing it with more modern, along with being right sized.

1469
01:23:04,111 --> 01:23:05,266
And a whole lot of it that was not

1470
01:23:05,266 --> 01:23:07,746
there in the original stuff that was hung on the walls.

1471
01:23:07,746 --> 01:23:13,146
It's not going to be properly covered in conduit.

1472
01:23:14,386 --> 01:23:17,306
The first segment of the concourse

1473
01:23:17,306 --> 01:23:20,916
that Courtney showed you that had the observatory, if you look

1474
01:23:20,916 --> 01:23:26,316
on the right, you'll see the observatory framed out

1475
01:23:28,640 --> 01:23:31,640
in the first OCR yard.

1476
01:23:37,569 --> 01:23:39,111
And if anyone would like to see this,

1477
01:23:39,111 --> 01:23:39,117
take a cruise down Westchester Parkway.

1478
01:23:39,117 --> 01:23:39,616
We've topped out the steel on the first segment.

1479
01:23:39,616 --> 01:23:41,996
We're doing things like pouring the concrete on some

1480
01:23:41,996 --> 01:23:44,438
of the floors right now.

1481
01:23:44,438 --> 01:23:48,961
And we're also starting the second and third segments

1482
01:23:48,961 --> 01:23:50,426
as we speak.

1483
01:23:50,426 --> 01:23:54,130
Progressive design build is a process that we're

1484
01:23:54,130 --> 01:23:57,290
using to deliver this, and we anticipate

1485
01:23:57,290 --> 01:24:01,386
and we are right now reaching 100% design level

1486
01:24:01,386 --> 01:24:04,332
on our progressive design process.

1487
01:24:04,332 --> 01:24:07,234
Guaranteed maximum pricing is anticipated

1488
01:24:07,234 --> 01:24:10,826
to come in front of you around the end of the year.

1489
01:24:10,826 --> 01:24:13,218
At that time, will have a lot more information

1490
01:24:13,218 --> 01:24:16,322
to give you on what the end of this project looks like.

1491
01:24:16,322 --> 01:24:19,906
Right now, prior to this action, we

1492
01:24:19,906 --> 01:24:24,634
have appropriated funding on this project of 1.56 billion.

1493
01:24:24,634 --> 01:24:27,692
The 300 million we're requesting right now

1494
01:24:27,692 --> 01:24:29,700
would take us to 1.95 billion.

1495
01:24:29,700 --> 01:24:32,787
This is designed to give us enough cash

1496
01:24:32,787 --> 01:24:35,546
to run this project at current rate,

1497
01:24:35,546 --> 01:24:38,712
and in some cases accelerating for the schedule.

1498
01:24:38,712 --> 01:24:46,512
It will get us past the end of the year, by which time

1499
01:24:48,411 --> 01:24:50,703
we will have the GOP in front of you for consideration.

1500
01:24:50,703 --> 01:24:54,786
The contractor is achieving its inclusivity requirements

1501
01:24:54,786 --> 01:24:57,468
in most categories, as you can see here.

1502
01:24:57,468 --> 01:24:59,826
I think we are most glad to report

1503
01:24:59,826 --> 01:25:04,260
in the middle of this table, that

1504
01:25:07,540 --> 01:25:09,957
in excess of 40% of the workers on this project are local.

1505
01:25:09,957 --> 01:25:11,123
This is a very cool project.

1506
01:25:11,123 --> 01:25:13,578
It's being built for Angelenos, being built by Angelenos.

1507
01:25:13,578 --> 01:25:15,162
We're very proud of that.

1508
01:25:15,162 --> 01:25:17,746
We will continue to work with the contractor on the higher

1509
01:25:17,746 --> 01:25:18,246
lacks.

1510
01:25:18,246 --> 01:25:20,250
We need to bring that up.

1511
01:25:20,250 --> 01:25:24,346
And also increase their placement of the sponsorships

1512
01:25:24,346 --> 01:25:26,346
going forward.

1513
01:25:28,986 --> 01:25:32,578
We are glad to take any questions that you

1514
01:25:32,578 --> 01:25:36,778
would like for the both of us.

1515
01:25:36,946 --> 01:25:39,346
>> Didn't mean to interrupt.

1516
01:25:45,207 --> 01:25:53,700
>> I was going to ask if there are any speakers on this item.

1517
01:25:53,560 --> 01:25:54,395
>> No.

1518
01:25:54,395 --> 01:25:55,978
>> Commissioner questions or comments.

1519
01:25:55,978 --> 01:25:57,884
>> Have a couple of questions.

1520
01:25:57,884 --> 01:25:59,551
Regarding the SB LV and small Businesses

1521
01:25:59,551 --> 01:25:59,748
enterprises, really great percentages and good goals.

1522
01:25:59,748 --> 01:26:03,100
How are we going to make sure and monitor

1523
01:26:03,100 --> 01:26:05,450
that there is actual participation by all

1524
01:26:05,450 --> 01:26:07,706
of the small businesses?

1525
01:26:07,706 --> 01:26:13,706
>> We work very closely with our responsibility unit that's now

1526
01:26:16,285 --> 01:26:17,577
transferred over to Mike Frank.

1527
01:26:17,577 --> 01:26:18,785
And do it on a monthly basis.

1528
01:26:18,785 --> 01:26:23,554
And as a reminder, these are contractor requirements.

1529
01:26:23,554 --> 01:26:25,476
If they do not meet these requirements,

1530
01:26:25,476 --> 01:26:26,706
there are monetary fines.

1531
01:26:26,706 --> 01:26:30,906
We will be sure that they do.

1532
01:26:34,478 --> 01:26:36,878
They are heavily incentivized.

1533
01:26:37,906 --> 01:26:41,813
>> We have a process in place so that if they're not actually

1534
01:26:41,813 --> 01:26:48,850
being part of the contract, that we can hear from the small

1535
01:26:48,850 --> 01:26:50,850
businesses?

1536
01:26:50,969 --> 01:26:51,881
>> Yes, we do.

1537
01:26:51,881 --> 01:26:54,423
Both were we develop groups and we meet regularly with these,

1538
01:26:54,423 --> 01:26:57,562
and we have regular outreach with the contractors

1539
01:26:57,562 --> 01:26:58,986
large and small.

1540
01:26:58,986 --> 01:27:06,186
We also work on the purchasing side and get that feedback loop.

1541
01:27:07,296 --> 01:27:12,960
Rest assured that we get calls quite often.

1542
01:27:12,612 --> 01:27:16,819
We have a very open-- if we have partners

1543
01:27:16,819 --> 01:27:19,277
that feel like they're not being given a fair shot on this.

1544
01:27:19,277 --> 01:27:21,277
>> That's great.

1545
01:27:24,720 --> 01:27:27,504
Going back to the beginning of your presentation,

1546
01:27:27,504 --> 01:27:28,879
the ultimate GMP of 1.95 billion.

1547
01:27:28,879 --> 01:27:32,660
What's the biggest remaining cost risk beyond that?

1548
01:27:32,660 --> 01:27:34,520
The GMP will not be 1.9.

1549
01:27:34,520 --> 01:27:37,610
If you approve this, will take appropriations to 1.95 billion.

1550
01:27:37,610 --> 01:27:40,986
We're not going to know that number until December.

1551
01:27:40,986 --> 01:27:42,790
>> That is correct.

1552
01:27:42,790 --> 01:27:45,166
We're now in the final design which has to be converted

1553
01:27:45,166 --> 01:27:48,919
and GMP and progressive design build is a negotiated process.

1554
01:27:48,919 --> 01:27:51,346
And when we get out on the end of that,

1555
01:27:51,346 --> 01:27:54,336
we have a number and that number has schedule implications

1556
01:27:54,336 --> 01:27:58,786
and we'll bring all of that to you at that time.

1557
01:27:58,786 --> 01:28:02,386
So Commissioner Velasco, with that explanation--

1558
01:28:14,629 --> 01:28:15,796
>> That answers my question.

1559
01:28:15,796 --> 01:28:20,959
>> You reference the fact that this is the fastest construction

1560
01:28:20,959 --> 01:28:24,559
project that LAWA has ever done.

1561
01:28:25,611 --> 01:28:27,653
>> On a terminal of anything close to this scope.

1562
01:28:27,653 --> 01:28:31,811
>> Given that, are there certain things to watch out

1563
01:28:31,811 --> 01:28:33,144
for as we're going through this?

1564
01:28:33,144 --> 01:28:33,151
Is there anything that keeps you up

1565
01:28:33,151 --> 01:28:33,162
at night given that we are on this fast track schedule?

1566
01:28:33,162 --> 01:28:33,787
What are those?

1567
01:28:33,787 --> 01:28:38,587
>> If you ask that question a year ago,

1568
01:28:43,523 --> 01:28:48,145
I would have given you a long list.

1569
01:28:48,145 --> 01:28:50,352
The list is shorter.

1570
01:28:50,352 --> 01:28:52,769
Top of the list a year ago was procurement long lead items

1571
01:28:52,769 --> 01:28:52,777
and things that we find in the ground.

1572
01:28:52,777 --> 01:28:53,852
I'm happy to report that pretty much all of the long lead

1573
01:28:53,852 --> 01:28:55,514
time items have been procured.

1574
01:28:55,514 --> 01:28:58,273
We're out of the ground, so we've dealt with most

1575
01:28:58,273 --> 01:29:00,174
of the things that were done they're.

1576
01:29:00,174 --> 01:29:02,574
There's always a risk issue on whether

1577
01:29:02,574 --> 01:29:04,616
and we're hearing a lot of things about potential

1578
01:29:04,616 --> 01:29:05,699
whether this season again.

1579
01:29:05,699 --> 01:29:07,796
We're up out of the ground that limited,

1580
01:29:07,796 --> 01:29:09,409
but we continue to watch that closely.

1581
01:29:09,409 --> 01:29:11,519
And if we see that closing in on us,

1582
01:29:11,519 --> 01:29:15,305
we'll put measures to minimize any impact

1583
01:29:15,305 --> 01:29:17,705
that that might incur.

1584
01:29:22,253 --> 01:29:24,753
We continue to monitor supply chains that's always an issue.

1585
01:29:24,753 --> 01:29:24,763
There's a lot of pressure on supply chain and steel

1586
01:29:24,763 --> 01:29:25,790
right now.

1587
01:29:25,790 --> 01:29:26,579
Mechanical and electrical equipment.

1588
01:29:26,579 --> 01:29:29,190
Luckily, we got in under the wire

1589
01:29:29,190 --> 01:29:30,607
to get in those procurement lines.

1590
01:29:30,607 --> 01:29:33,634
We've had a few issues with steel that we're dealing with

1591
01:29:33,634 --> 01:29:36,786
and we've been able to resequence or even pull steel

1592
01:29:36,786 --> 01:29:38,946
off of some other projects.

1593
01:29:38,946 --> 01:29:44,986
And at this point, that's the high risk that it's making sure

1594
01:29:44,986 --> 01:29:48,746
the procurement cycles work as they have been designed.

1595
01:29:48,746 --> 01:29:53,546
>> I'm sure there are contingency plans in place

1596
01:29:56,931 --> 01:29:59,473
if there are weather issues or supply chain issues to keep us

1597
01:29:59,473 --> 01:30:01,473
on track?

1598
01:30:04,994 --> 01:30:07,369
>> To a certain extent, yes, depending on what the nature

1599
01:30:07,369 --> 01:30:08,119
of the problem is.

1600
01:30:08,119 --> 01:30:12,702
>> One thing I would add is, we're moving faster than

1601
01:30:12,702 --> 01:30:13,619
we've ever had before.

1602
01:30:13,619 --> 01:30:13,630
We're doing that because we need to transform this airport as

1603
01:30:13,630 --> 01:30:15,940
quickly as we can.

1604
01:30:15,940 --> 01:30:18,843
We believe that with the plan that Mike and Cardi have laid

1605
01:30:18,843 --> 01:30:20,986
out in are driving, that we can actually

1606
01:30:20,986 --> 01:30:24,802
deliver this project in 2028, depending on weather

1607
01:30:24,802 --> 01:30:25,946
and some other factors.

1608
01:30:25,946 --> 01:30:28,486
There's a chance we can deliver this before the Olympics.

1609
01:30:28,486 --> 01:30:31,626
We'd obviously like to do that and show the world the next five

1610
01:30:31,626 --> 01:30:34,190
star terminal when they come here for the Olympics.

1611
01:30:34,190 --> 01:30:36,338
But you mentioned what keeps us up at night,

1612
01:30:36,338 --> 01:30:38,346
with speed comes risk.

1613
01:30:38,346 --> 01:30:41,106
So we're trying to balance speed, risk and cost and all

1614
01:30:41,106 --> 01:30:42,156
of those things.

1615
01:30:42,156 --> 01:30:44,706
And we have many other projects that we

1616
01:30:44,706 --> 01:30:46,666
have to devote resources to.

1617
01:30:46,666 --> 01:30:48,466
The team is working right now.

1618
01:30:48,466 --> 01:30:51,450
Our ultimate goal would be to deliver a five star

1619
01:30:51,450 --> 01:30:53,446
terminal before the Olympics.

1620
01:30:53,446 --> 01:30:55,634
Number one goal is to deliver a five star terminal.

1621
01:30:55,634 --> 01:30:57,717
That's what the team is driving towards right now.

1622
01:30:57,717 --> 01:30:59,426
I think we can do it.

1623
01:30:59,426 --> 01:31:01,426
It's tight.

1624
01:31:04,473 --> 01:31:09,273
This is the fastest it's ever been done

1625
01:31:10,639 --> 01:31:12,560
and we're using novel methods that

1626
01:31:12,560 --> 01:31:17,456
are going well right >> Can I just follow up?

1627
01:31:17,461 --> 01:31:18,300
Fastest ever.

1628
01:31:18,300 --> 01:31:19,336
I think that's a great question.

1629
01:31:19,336 --> 01:31:26,536
Why is this the fastest ever, aside from the two of you

1630
01:31:26,638 --> 01:31:28,638
helping lead this?

1631
01:31:31,867 --> 01:31:36,667
>> There are drivers of why it's moving fast,

1632
01:31:38,193 --> 01:31:39,877
because we want it to move faster.

1633
01:31:39,877 --> 01:31:41,127
You may want to speak on that.

1634
01:31:41,127 --> 01:31:44,127
>> John mentioned the Olympic date,

1635
01:31:44,840 --> 01:31:44,852
and while the ultimate goal is to deliver a five star Skytrax

1636
01:31:44,852 --> 01:31:44,863
terminal for LAX, a lot of motivation has been to reflect

1637
01:31:44,863 --> 01:31:44,926
our city and to bring excitement,

1638
01:31:44,926 --> 01:31:46,148
while we have all of the visibility in time

1639
01:31:46,148 --> 01:31:47,226
for the games.

1640
01:31:47,226 --> 01:31:52,626
>> The direct answer is we're doing the offsite construction

1641
01:31:57,750 --> 01:31:58,250
method.

1642
01:31:58,250 --> 01:31:58,255
We're literally rebuilding the onsite.

1643
01:31:58,255 --> 01:31:58,261
We're doing two things at once.

1644
01:31:58,261 --> 01:31:58,385
We've normally done a sequence.

1645
01:31:58,385 --> 01:32:00,677
Terminal for will ultimately take more than eight years

1646
01:32:00,677 --> 01:32:04,877
of disruption to customers, and the inconvenience

1647
01:32:13,231 --> 01:32:14,189
that we all hear about.

1648
01:32:14,189 --> 01:32:16,670
That was a different delivery method.

1649
01:32:16,670 --> 01:32:18,253
We're going to do this in three years.

1650
01:32:18,253 --> 01:32:21,527
>> If you drive down Westchester Parkway which I highly recommend

1651
01:32:21,527 --> 01:32:21,536
every commissioner does, you will see the structures being

1652
01:32:21,536 --> 01:32:21,545
built right on the airfield right at Westchester Parkfield,

1653
01:32:21,545 --> 01:32:22,295
they are massive.?

1654
01:32:22,295 --> 01:32:25,866
Is it only the first one that's?

1655
01:32:25,866 --> 01:32:27,881
I can't tell because at this time

1656
01:32:27,881 --> 01:32:29,506
they're really connected to each other.

1657
01:32:29,506 --> 01:32:30,978
It's a massive structure out there.

1658
01:32:30,978 --> 01:32:34,657
I get these phone calls about, what the heck is going on?

1659
01:32:34,657 --> 01:32:38,526
Terminal five is being built at Westchester Parkway,

1660
01:32:38,526 --> 01:32:45,726
and it's going to move across the airport and connect it to.

1661
01:32:51,252 --> 01:32:54,877
I highly recommend that you look at it.

1662
01:32:54,877 --> 01:32:57,200
>> It's much closer unlike the previous OCR we did.

1663
01:32:57,200 --> 01:32:57,700
They're not actually joined they're.

1664
01:32:57,700 --> 01:32:57,882
They are much closer.

1665
01:32:57,882 --> 01:33:00,882
>> Is it just one module?

1666
01:33:06,740 --> 01:33:08,781
>> One has been topped off.

1667
01:33:08,781 --> 01:33:09,739
We're working on three.

1668
01:33:09,739 --> 01:33:12,139
>> There's excitement and enthusiasm.

1669
01:33:13,280 --> 01:33:15,113
When you hear about the innovation, and that

1670
01:33:15,113 --> 01:33:15,120
of other stories out there, I just

1671
01:33:15,120 --> 01:33:16,495
think the innovation is something

1672
01:33:16,495 --> 01:33:21,295
that we should let the public know about,

1673
01:33:24,660 --> 01:33:26,304
because it is remarkable.

1674
01:33:26,304 --> 01:33:26,316
I think we were told when we were doing this project, highly

1675
01:33:26,316 --> 01:33:26,535
unlikely, and it'll be done in time for the Olympics.

1676
01:33:26,535 --> 01:33:28,746
Now you're thinking about it, its safety

1677
01:33:28,746 --> 01:33:30,412
and all the other features.

1678
01:33:30,412 --> 01:33:34,326
I will say thank you, but I believe

1679
01:33:34,326 --> 01:33:37,426
short of us driving up and down the boulevards,

1680
01:33:37,426 --> 01:33:41,146
I think LA needs to hear about this.

1681
01:33:41,146 --> 01:33:47,746
Because this shows what you folks are doing at LAX keeping

1682
01:33:56,221 --> 01:33:58,221
the airport open 24/7.

1683
01:33:59,764 --> 01:34:01,541
I think that needs to be publicized.

1684
01:34:01,541 --> 01:34:01,550
>> And Mike has been out in the community.

1685
01:34:01,550 --> 01:34:01,556
Making community presentations so that people

1686
01:34:01,556 --> 01:34:02,431
know what's going on.

1687
01:34:02,431 --> 01:34:06,354
>> I want to underscore the offset construction has enabled

1688
01:34:06,354 --> 01:34:09,986
more access for jobs of folks that were not traditionally be

1689
01:34:09,986 --> 01:34:12,986
required to be on the...

1690
01:34:26,698 --> 01:34:33,298
>> Now we have a whole different class of workers that can--

1691
01:34:34,169 --> 01:34:34,748
>> The jobs.

1692
01:34:34,748 --> 01:34:35,528
Can you go back to the inclusivity update slide really

1693
01:34:35,528 --> 01:34:36,280
quickly?

1694
01:34:36,280 --> 01:34:42,535
I just want to commend the direction that LAWA is going in,

1695
01:34:42,535 --> 01:34:45,339
when we look at different percentages.

1696
01:34:45,339 --> 01:34:45,349
And I noticed that you highlighted in green the K-12

1697
01:34:45,349 --> 01:34:46,807
title one Stem programs, and highly

1698
01:34:46,807 --> 01:34:49,106
encourage continued dialog with Mark Frank and his team

1699
01:34:49,106 --> 01:34:54,506
on programs that we have, and how we're helping

1700
01:34:59,234 --> 01:35:00,317
to create those pipelines.

1701
01:35:00,317 --> 01:35:00,325
Because these should also be jobs and opportunities

1702
01:35:00,325 --> 01:35:00,331
for the future workforce and that

1703
01:35:00,331 --> 01:35:01,834
they are able to see themselves working here and having careers

1704
01:35:01,834 --> 01:35:02,562
here.

1705
01:35:02,562 --> 01:35:07,546
Can you redefine for me local workers actual over 40%.

1706
01:35:07,546 --> 01:35:09,637
What is that region include?

1707
01:35:09,637 --> 01:35:12,626
Is it zip codes or LA County?

1708
01:35:12,626 --> 01:35:20,426
>> I would really have to defer that to Mark Frank's team and we

1709
01:35:23,869 --> 01:35:29,861
can get that to you or ask Mark to come up.

1710
01:35:29,861 --> 01:35:30,653
>> Congratulations.

1711
01:35:30,653 --> 01:35:32,700
It's going in the right direction.

1712
01:35:32,700 --> 01:35:34,272
>> Thank you very much.

1713
01:35:34,272 --> 01:35:34,980
One little anecdote and we will end on this slide.

1714
01:35:34,980 --> 01:35:34,989
John witnessed that we had some conversation with trade

1715
01:35:34,989 --> 01:35:34,993
partners working with OCR.

1716
01:35:34,993 --> 01:35:35,135
And we learned something we hadn't learned.

1717
01:35:35,135 --> 01:35:37,230
We're is spreading about this project among our trade partners

1718
01:35:37,230 --> 01:35:39,255
to the point where they think this is such a cool project,

1719
01:35:39,255 --> 01:35:41,571
that we're actually getting the cream of the crop of a lot

1720
01:35:41,571 --> 01:35:43,282
of our trade partners because they want

1721
01:35:43,282 --> 01:35:45,479
to work on this project they want to have

1722
01:35:45,479 --> 01:35:46,896
their finger in this and they want

1723
01:35:46,896 --> 01:35:50,106
to show their kids and grandkids, I did this

1724
01:35:50,106 --> 01:35:51,272
and I worked on this.

1725
01:35:51,272 --> 01:35:54,872
That's something we don't see often.

1726
01:36:02,791 --> 01:36:04,374
We are really just to see that happen.

1727
01:36:04,374 --> 01:36:04,389
>> I was out there, and I met the one who I was talking about.

1728
01:36:04,389 --> 01:36:04,399
Met a lot of the iron workers, they're really proud

1729
01:36:04,399 --> 01:36:06,607
and these are iron workers that have been everywhere.

1730
01:36:06,607 --> 01:36:07,843
They go by seniority.

1731
01:36:07,843 --> 01:36:10,999
This was the hottest project in all of Southern California

1732
01:36:10,999 --> 01:36:16,399
because they built a point for this-- we literally

1733
01:36:25,116 --> 01:36:27,740
have the best iron workers of all of California

1734
01:36:27,740 --> 01:36:27,790
right here in our site.

1735
01:36:27,790 --> 01:36:27,850
And it's not just a hyperbole.

1736
01:36:27,850 --> 01:36:27,950
They are picking and placing steel at double the rate

1737
01:36:27,950 --> 01:36:27,990
of the other crews.

1738
01:36:27,990 --> 01:36:27,807
Double the rates.

1739
01:36:27,807 --> 01:36:29,807
>> That's specifically--

1740
01:36:39,801 --> 01:36:42,468
>> There's a superintendent or I forget the name of the position

1741
01:36:42,468 --> 01:36:42,470
out there.

1742
01:36:42,470 --> 01:36:42,482
The person in charge has said he's done it a few times,

1743
01:36:42,482 --> 01:36:43,774
and they're going very quickly.

1744
01:36:43,774 --> 01:36:50,974
>> And it's specifically for the desire for the part of the first

1745
01:36:52,136 --> 01:36:52,928
five star terminal.

1746
01:36:52,928 --> 01:36:52,938
>> They volunteered and fought to compete on this job

1747
01:36:52,938 --> 01:36:52,947
by seniority because it's the coolest job in Southern

1748
01:36:52,947 --> 01:36:53,799
California right now.

1749
01:36:53,799 --> 01:36:55,559
>> And it also speaks to the leverage that we can have

1750
01:36:55,559 --> 01:36:57,809
and have companies that are are going to be contracted

1751
01:36:57,809 --> 01:37:03,209
and getting these awards and our expectations of them.

1752
01:37:05,226 --> 01:37:09,426
I want to go back to that.

1753
01:37:18,284 --> 01:37:19,326
>> I've got one question.

1754
01:37:19,326 --> 01:37:22,926
Noted on the slide, there's going

1755
01:37:25,150 --> 01:37:26,473
to be a lot of creative concessions

1756
01:37:26,473 --> 01:37:26,477
and placement of food.

1757
01:37:26,477 --> 01:37:26,486
One of the things I'm seeing over the years

1758
01:37:26,486 --> 01:37:26,497
is these projects get done without the input of the people

1759
01:37:26,497 --> 01:37:28,182
we're going to operate.

1760
01:37:28,182 --> 01:37:31,106
It requires lots of retrofits after the fact.

1761
01:37:31,106 --> 01:37:36,506
I do believe I was around here when Tibbitt,

1762
01:37:44,486 --> 01:37:47,388
and I remember the process of having

1763
01:37:47,388 --> 01:37:49,305
to invest a lot more money as a concessionaire

1764
01:37:49,305 --> 01:37:54,773
because the input of where they wanted the consensus, at they

1765
01:37:54,773 --> 01:37:56,773
had configured the building or somewhat aligned.

1766
01:37:56,773 --> 01:38:02,173
I know LA will go through a competitive process,

1767
01:38:03,169 --> 01:38:06,374
but figuring out a way to get input ahead of time

1768
01:38:06,374 --> 01:38:11,774
because you show great slides with market and this

1769
01:38:11,830 --> 01:38:15,472
and that, we're getting input from the people who actually

1770
01:38:15,472 --> 01:38:17,970
have to operate might speed the process

1771
01:38:17,970 --> 01:38:21,897
and make sure that things work more efficiently.

1772
01:38:25,723 --> 01:38:30,178
>> We appreciate that, and to the next point,

1773
01:38:30,178 --> 01:38:32,428
Commissioner Roxburgh's point about the drivers of how

1774
01:38:32,428 --> 01:38:32,433
we've been moving so quickly.

1775
01:38:32,433 --> 01:38:32,443
One of the ways we've been able to do that

1776
01:38:32,443 --> 01:38:32,452
is resourcing this project a little differently than others.

1777
01:38:32,452 --> 01:38:32,830
For the design, it's always difficult to design

1778
01:38:32,830 --> 01:38:33,574
by committee.

1779
01:38:33,574 --> 01:38:35,292
We've done so to a pretty large degree

1780
01:38:35,292 --> 01:38:37,417
to ensure that that was the case.

1781
01:38:37,417 --> 01:38:39,666
That we were pulling in a lot of different feedback

1782
01:38:39,666 --> 01:38:41,646
from diverse groups.

1783
01:38:41,646 --> 01:38:44,386
Our concessions design, we've actually

1784
01:38:44,386 --> 01:38:48,274
had multiple designers, probably about different five firms,

1785
01:38:48,274 --> 01:38:54,261
and our in-house design talent who has been liaising and taking

1786
01:38:54,261 --> 01:38:56,226
feedback from concessionaires to see

1787
01:38:56,226 --> 01:38:58,734
how we can improve and inject that into the project.

1788
01:38:58,734 --> 01:38:59,786
You're right that right now we have

1789
01:38:59,786 --> 01:39:01,260
an open solicitation for concessions

1790
01:39:01,260 --> 01:39:02,204
partners for terminal five.

1791
01:39:02,204 --> 01:39:04,154
I can't speak to it too much.

1792
01:39:04,154 --> 01:39:07,207
We have elongated some of the timelines to do just that.

1793
01:39:07,207 --> 01:39:09,842
We had some industry days, we had outreach days

1794
01:39:09,842 --> 01:39:12,506
before we ever released the solicitation

1795
01:39:12,506 --> 01:39:17,306
and we have some additional time for that.

1796
01:39:32,700 --> 01:39:34,492
>> One last point on the inclusivity update

1797
01:39:34,492 --> 01:39:34,495
and the requirements.

1798
01:39:34,495 --> 01:39:36,953
I've never seen this before, but on house individual hires.

1799
01:39:36,953 --> 01:39:41,753
So the commitment is-- it's one that I

1800
01:39:48,437 --> 01:39:50,354
thought that is really great in a creative way

1801
01:39:50,354 --> 01:39:52,771
to try to help people take the next level up, earn income.

1802
01:39:52,771 --> 01:39:57,990
>> This is the first project I'm aware of that's really trying.

1803
01:39:57,990 --> 01:39:58,599
It's particularly satisfying to know

1804
01:39:58,599 --> 01:39:58,606
we had our first unhoused individual employed

1805
01:39:58,606 --> 01:39:58,609
on a project.

1806
01:39:58,609 --> 01:39:58,776
The requirement will hopefully get there

1807
01:39:58,776 --> 01:40:00,876
because we've got a lot more tradespeople coming

1808
01:40:00,876 --> 01:40:03,939
on board over the next year.

1809
01:40:03,939 --> 01:40:08,139
The actual staffing is on the upswing,

1810
01:40:08,544 --> 01:40:12,144
and it will spike next year.

1811
01:40:17,321 --> 01:40:18,946
That was particularly satisfying to see

1812
01:40:18,946 --> 01:40:22,546
that we're able to do that.

1813
01:40:25,396 --> 01:40:27,646
>> Looks like Flag Metro is doing a program like that.

1814
01:40:27,646 --> 01:40:27,657
Mr. Frank and I toured a program where they're doing that.

1815
01:40:27,657 --> 01:40:29,407
It's something there to take lessons from.

1816
01:40:29,407 --> 01:40:31,407
>> Thank you both.

1817
01:40:34,452 --> 01:40:36,776
If there are no further questions or comments, a motion

1818
01:40:36,776 --> 01:40:37,859
to approve item number 34?

1819
01:40:37,859 --> 01:40:39,859
Thank you.

1820
01:40:44,495 --> 01:40:47,320
Commissioner Velasco moved and Commissioner Roxborough

1821
01:40:47,320 --> 01:40:47,820
seconded.

1822
01:40:47,820 --> 01:40:51,420
All those in favor, say aye.

1823
01:40:56,728 --> 01:40:59,177
[Members voting] The ayes have it.

1824
01:40:59,177 --> 01:41:01,177
Item 34 is approved.

1825
01:41:01,561 --> 01:41:03,561
Item 35.

1826
01:41:05,248 --> 01:41:07,831
>> We have a short leading for you because if my memory serves

1827
01:41:07,831 --> 01:41:07,837
me correctly, I think Commissioner Velasco

1828
01:41:07,837 --> 01:41:08,286
and Commissioner Roxborough were the only two people here back

1829
01:41:08,286 --> 01:41:11,546
in 2020 when the board approved this project.

1830
01:41:11,546 --> 01:41:14,726
I thought I'd do a brief recap for you guys.

1831
01:41:14,726 --> 01:41:18,300
This project was awarded to Skanska back in 2020,

1832
01:41:18,300 --> 01:41:22,306
and it was done as a hybrid design build project.

1833
01:41:22,306 --> 01:41:25,162
Its intent as CEO Ackerman mentioned,

1834
01:41:25,162 --> 01:41:29,258
was to provide all critical structure that would connect all

1835
01:41:29,258 --> 01:41:32,186
of the big projects together.

1836
01:41:32,186 --> 01:41:37,456
We were able to do in this first project, 19 individual projects

1837
01:41:37,456 --> 01:41:40,856
ranging from brand new streets, to street widening,

1838
01:41:40,856 --> 01:41:44,346
to landscaping and major underground utility

1839
01:41:44,346 --> 01:41:46,346
construction.

1840
01:41:48,626 --> 01:41:52,226
We undergrounded every single power line

1841
01:41:57,190 --> 01:42:00,264
that would serve all of the facilities of lamp.

1842
01:42:00,264 --> 01:42:02,597
We also did some major drainage improvements, as well as

1843
01:42:02,597 --> 01:42:02,604
some work in the central terminal area.

1844
01:42:02,604 --> 01:42:02,613
One of the really unique aspects of this project

1845
01:42:02,613 --> 01:42:04,196
was a provision that the board allowed

1846
01:42:04,196 --> 01:42:07,560
us to put in, which was called the gap Project Allowance.

1847
01:42:07,560 --> 01:42:13,560
That allowed us to give the flexibility and the nimbleness

1848
01:42:13,226 --> 01:42:15,150
to be able to react when things came up

1849
01:42:15,150 --> 01:42:16,900
and when there were projects that were not

1850
01:42:16,900 --> 01:42:19,594
identified in 2020 that were absolutely critical to make

1851
01:42:19,594 --> 01:42:20,990
happen.

1852
01:42:20,990 --> 01:42:22,857
That gave us the flexibility to do that.

1853
01:42:22,857 --> 01:42:25,106
We were able to do ten additional projects

1854
01:42:25,106 --> 01:42:28,706
with that flexibility that you approved.

1855
01:42:29,906 --> 01:42:32,611
The construction of those 29 projects

1856
01:42:32,611 --> 01:42:34,952
finished earlier this year.

1857
01:42:34,952 --> 01:42:38,322
So the team has been working on closing out

1858
01:42:38,322 --> 01:42:41,866
the project and today we're ready to issue the final change

1859
01:42:41,866 --> 01:42:45,138
order, which will completely close out of the project.

1860
01:42:45,138 --> 01:42:46,846
The final change order covers three areas

1861
01:42:46,846 --> 01:42:47,946
that we are wrapping up.

1862
01:42:47,946 --> 01:42:51,319
One is compensating Skanska for some of the additional permit

1863
01:42:51,319 --> 01:42:54,946
fees that we are experienced on the project.

1864
01:42:54,946 --> 01:42:57,881
Compensates Skanska and their subcontractors

1865
01:42:57,881 --> 01:43:01,506
for some of the permit delays that happened on the project.

1866
01:43:01,506 --> 01:43:04,379
It also goes and realizes some of the credits

1867
01:43:04,379 --> 01:43:08,296
for some of the work that was Descoped because it was either

1868
01:43:08,296 --> 01:43:11,138
no longer needed because time had passed

1869
01:43:11,138 --> 01:43:13,506
and wayfinding is a great example of that,

1870
01:43:13,506 --> 01:43:17,482
and also for a project that just physically could not

1871
01:43:17,482 --> 01:43:20,906
be constructed when we anticipated them in 2020.

1872
01:43:20,906 --> 01:43:24,250
The total change order value is $15.7 million.

1873
01:43:24,250 --> 01:43:27,660
The good news is completely covered by the contingency

1874
01:43:27,660 --> 01:43:29,466
that you approved in 2020.

1875
01:43:29,946 --> 01:43:35,260
I did want to compliment our partners comments on this.

1876
01:43:35,260 --> 01:43:37,626
Have been an amazing partner.

1877
01:43:37,626 --> 01:43:39,626
Just several examples.

1878
01:43:39,946 --> 01:43:41,946
Here inclusivity performance.

1879
01:43:41,954 --> 01:43:48,554
You can see here they far exceeded 6% on a small business.

1880
01:43:49,580 --> 01:43:53,796
18% on local business, local small business and additional

1881
01:43:53,796 --> 01:43:54,586
10%.

1882
01:43:54,586 --> 01:43:57,202
And the one that people seem to struggle with,

1883
01:43:57,202 --> 01:44:00,546
the disabled veterans and they were able to increase that by 2%

1884
01:44:00,546 --> 01:44:02,546
as well.

1885
01:44:03,586 --> 01:44:07,479
The other thing I wanted to comment on is the safety record.

1886
01:44:07,479 --> 01:44:10,538
It's been a long time and I've been here doing this a long time

1887
01:44:10,538 --> 01:44:14,945
it's been a long time since I've seen a project of this length.

1888
01:44:14,945 --> 01:44:17,106
Six years where they were able to have

1889
01:44:17,106 --> 01:44:19,506
zero last time incidents.

1890
01:44:20,260 --> 01:44:23,858
That's a compliment to Skanska, to their safety culture,

1891
01:44:23,858 --> 01:44:29,660
to our safety culture for helping to drive that.

1892
01:44:29,660 --> 01:44:30,780
That was a big deal.

1893
01:44:30,780 --> 01:44:35,381
They also put in eight graduates of our higher lacks program,

1894
01:44:35,381 --> 01:44:39,914
which was amazing to see, giving people a high paying union jobs.

1895
01:44:39,914 --> 01:44:42,532
That was fantastic as well.

1896
01:44:42,532 --> 01:44:47,338
That was really glad to see that that wasn't the only person that

1897
01:44:47,338 --> 01:44:48,726
was a great project.

1898
01:44:48,726 --> 01:44:52,326
As CEO Ackerman mentioned, ENR it

1899
01:45:00,953 --> 01:45:03,708
recognizes as the best project in the region for aviation

1900
01:45:03,708 --> 01:45:04,541
and transit section.

1901
01:45:04,541 --> 01:45:06,166
I wanted to take just one quick minute.

1902
01:45:06,166 --> 01:45:13,366
We have a small but mighty team here in the audience today.

1903
01:45:16,279 --> 01:45:18,168
Stand up.

1904
01:45:18,168 --> 01:45:20,293
[Applause] And I just want to personally thank them

1905
01:45:20,293 --> 01:45:22,251
for doing what they do every single day to make

1906
01:45:22,251 --> 01:45:24,251
this project successful.

1907
01:45:28,292 --> 01:45:30,292
You guys rock.

1908
01:45:30,460 --> 01:45:30,960
Thank you.

1909
01:45:30,960 --> 01:45:30,971
In brief, we're asking you to approve the final change order

1910
01:45:30,971 --> 01:45:33,429
and give the CEO the authority to execute that change order

1911
01:45:33,429 --> 01:45:36,106
and happy to answer any questions.

1912
01:45:36,106 --> 01:45:40,306
>> Are there any speakers on this item?

1913
01:45:51,870 --> 01:45:51,810
>> No.

1914
01:45:51,810 --> 01:45:52,140
>> The comment period for this item is closed any questions

1915
01:45:52,140 --> 01:45:53,139
or comments from the board?

1916
01:45:53,139 --> 01:45:56,139
>> Thank you to the team.

1917
01:45:57,699 --> 01:45:58,648
It's very cool.

1918
01:45:58,648 --> 01:45:58,652
These are long projects.

1919
01:45:58,652 --> 01:45:58,662
It's very cool to see when something comes to completion,

1920
01:45:58,662 --> 01:46:00,829
to be able to stamp that and we appreciate your time

1921
01:46:00,829 --> 01:46:01,892
and hard work.

1922
01:46:01,892 --> 01:46:04,103
It does not go unseen.

1923
01:46:04,103 --> 01:46:08,319
Had a very good question on this specific extended overhead

1924
01:46:08,319 --> 01:46:12,720
portion, because out of the total of the 15.7,

1925
01:46:12,720 --> 01:46:16,626
it looks like from the breakdown that almost 11

1926
01:46:16,626 --> 01:46:19,626
is from an extended overhead.

1927
01:46:30,257 --> 01:46:31,799
Can you talk a little bit about that?

1928
01:46:31,799 --> 01:46:32,466
Why it was that?

1929
01:46:32,466 --> 01:46:36,333
>> If you guys recall, and this is another silver lining.

1930
01:46:36,333 --> 01:46:37,875
Because this is the last project that

1931
01:46:37,875 --> 01:46:38,856
is being done under the previous MOU with our city agencies.

1932
01:46:38,856 --> 01:46:41,452
And you're probably recall about two years ago

1933
01:46:41,452 --> 01:46:42,892
we completely revamped that.

1934
01:46:42,892 --> 01:46:45,666
We took all of the failures and the lessons

1935
01:46:45,666 --> 01:46:47,426
learned for all of these projects

1936
01:46:47,426 --> 01:46:50,334
and incorporated it into that new MoU.

1937
01:46:50,334 --> 01:46:55,950
I have to say that has been very effective so far.

1938
01:46:55,950 --> 01:46:57,546
Especially the way we're measuring that is

1939
01:46:57,546 --> 01:46:59,370
on our Atmp roadways project.

1940
01:46:59,370 --> 01:47:02,586
We're not going to see any of those permit delays

1941
01:47:02,586 --> 01:47:06,360
that we have experienced on the Lamp program.

1942
01:47:06,360 --> 01:47:08,762
That extended overhead is solely related

1943
01:47:08,762 --> 01:47:13,226
to permit delays that we experienced from Bow where

1944
01:47:13,226 --> 01:47:16,176
we did not meet the commitments of the original MOU.

1945
01:47:16,176 --> 01:47:20,397
That is compensating thanks for being on the job

1946
01:47:20,397 --> 01:47:21,946
a lot longer than we anticipated.

1947
01:47:21,946 --> 01:47:27,346
There's an additional line item for the permit fees.

1948
01:47:36,877 --> 01:47:38,335
>> There's an additional line item?

1949
01:47:38,335 --> 01:47:40,335
>> Correct.

1950
01:47:40,849 --> 01:47:43,369
General overhead compensates them for being here longer

1951
01:47:43,369 --> 01:47:43,374
and having to work longer.

1952
01:47:43,374 --> 01:47:43,381
The longer they are here, the longer

1953
01:47:43,381 --> 01:47:43,386
BOE charges for permit fees.

1954
01:47:43,386 --> 01:47:43,524
It's not just BOE, it's the other agencies as well.

1955
01:47:43,524 --> 01:47:45,786
It's a factor of time, and that those permits

1956
01:47:45,786 --> 01:47:49,866
are open longer that we have to pay more fees for those permits.

1957
01:47:49,866 --> 01:47:52,266
>> Thank you for that.

1958
01:48:05,140 --> 01:48:07,414
>> Briefly, best and safest.

1959
01:48:09,504 --> 01:48:10,962
For a six year construction project

1960
01:48:10,962 --> 01:48:10,969
to have no lost time in California.

1961
01:48:10,969 --> 01:48:10,975
I've been doing this 35 years.

1962
01:48:10,975 --> 01:48:10,977
Unheard of.

1963
01:48:10,977 --> 01:48:10,979
Well done.

1964
01:48:10,979 --> 01:48:13,640
Leadership, safety training, everything,

1965
01:48:13,640 --> 01:48:15,130
a positive to talk about.

1966
01:48:15,130 --> 01:48:16,106
That's highly unusual.

1967
01:48:16,106 --> 01:48:18,106
Well done.

1968
01:48:19,146 --> 01:48:23,946
>> The whole team and everybody be on there.

1969
01:48:37,152 --> 01:48:39,690
>> If there are no more comments or questions,

1970
01:48:39,690 --> 01:48:39,790
could I have a motion to approve item number 35?

1971
01:48:39,790 --> 01:48:41,616
Commissioner Labeau moved and Commissioner Velasco seconded.

1972
01:48:41,616 --> 01:48:45,216
All those in favor, say aye.

1973
01:48:53,120 --> 01:48:54,854
All those opposed, say no.

1974
01:48:54,854 --> 01:48:55,979
Item number 35 is approved.

1975
01:48:55,979 --> 01:48:55,985
We're now on item number 36.

1976
01:48:55,985 --> 01:48:55,990
Can I invite Doug Webster?

1977
01:48:55,990 --> 01:48:57,407
He doesn't look like Doug Webster.

1978
01:48:57,407 --> 01:48:59,407
>> Close resemblance.

1979
01:49:08,509 --> 01:49:11,111
>> Good morning, Vice President Aramayo, commissioners.

1980
01:49:11,111 --> 01:49:11,119
My name is futon with facilities manager division.

1981
01:49:11,119 --> 01:49:12,827
I'll be filling in for Mr. Webster today.

1982
01:49:12,827 --> 01:49:16,427
Item before you, 36, is to request

1983
01:49:24,849 --> 01:49:26,932
to approve the First Amendment to contract DA57072

1984
01:49:26,932 --> 01:49:26,935
with Durst LLC.

1985
01:49:26,935 --> 01:49:26,982
The requested amendment will increase the contract authority

1986
01:49:26,982 --> 01:49:27,812
by 2 million and extend the contract term

1987
01:49:27,812 --> 01:49:29,136
by an additional two years.

1988
01:49:29,136 --> 01:49:32,492
This contract provides required testing maintenance, replacement

1989
01:49:32,492 --> 01:49:34,896
and repair services for automatic closing fire

1990
01:49:34,896 --> 01:49:39,514
assemblies, doors and security gates, levers at LAX and Van

1991
01:49:39,514 --> 01:49:40,602
Nuys Airport.

1992
01:49:40,602 --> 01:49:43,602
These assets are important components

1993
01:49:46,482 --> 01:49:50,682
of LAWA's fire and safety operational infrastructure.

1994
01:49:54,107 --> 01:49:55,565
In particular, fire door assemblies

1995
01:49:55,565 --> 01:49:56,871
are subject to annual inspection, testing

1996
01:49:56,871 --> 01:49:59,686
and certification under Los Angeles Fire Department chiefs.

1997
01:49:59,686 --> 01:50:03,706
Contractor support is needed to complete the required testing as

1998
01:50:03,706 --> 01:50:05,706
well as prompts.

1999
01:50:07,186 --> 01:50:11,322
The contract has almost been fully Expanded.

2000
01:50:11,322 --> 01:50:13,322
99% has been used.

2001
01:50:13,351 --> 01:50:16,162
The requested amendment will provide sufficient authority

2002
01:50:16,162 --> 01:50:19,572
and contract time to continue these critical services

2003
01:50:19,572 --> 01:50:21,266
without interruption.

2004
01:50:21,266 --> 01:50:24,866
And I'm available for any questions.

2005
01:50:26,106 --> 01:50:30,306
>> Are there any speakers for this presentation?

2006
01:50:41,441 --> 01:50:42,244
>> No.

2007
01:50:42,244 --> 01:50:42,909
>> We will close the comment period for this presentation.

2008
01:50:42,909 --> 01:50:42,916
Any questions or comments from the board?

2009
01:50:42,916 --> 01:50:44,791
If there are no further questions or comments

2010
01:50:44,791 --> 01:50:49,591
I have a motion to approve item number 36?

2011
01:50:58,118 --> 01:50:59,531
>> So moved.,

2012
01:50:59,531 --> 01:51:01,531
>> Second.

2013
01:51:02,815 --> 01:51:06,415
>> All those in favor, say aye.

2014
01:51:07,372 --> 01:51:09,772
Those opposed, say no.

2015
01:51:11,989 --> 01:51:14,380
[Members voting] The ayes have it.

2016
01:51:14,380 --> 01:51:16,438
Item number 36 is approved.

2017
01:51:20,322 --> 01:51:21,533
Item 37.

2018
01:51:21,533 --> 01:51:22,440
>> Item 37 is a request to approve a third amendment

2019
01:51:22,440 --> 01:51:22,510
to our contract DA5638 with Katie Industries,

2020
01:51:22,510 --> 01:51:24,510
increasing the contract authority by 2.6 million

2021
01:51:24,510 --> 01:51:27,180
and extend the contract term by one year for May 1928.

2022
01:51:27,180 --> 01:51:30,180
80 industry provides specialized medium voltage

2023
01:51:30,606 --> 01:51:33,660
and electrical support services for,

2024
01:51:33,660 --> 01:51:36,660
emergency repairs, maintenance, testing, support

2025
01:51:38,826 --> 01:51:41,394
and technical training for our FMD staff.

2026
01:51:41,394 --> 01:51:45,466
The amendment is needed due to several significant and

2027
01:51:45,466 --> 01:51:47,826
unanticipated electrical system events that

2028
01:51:47,826 --> 01:51:50,799
have accelerated the contract expenditures, including

2029
01:51:50,799 --> 01:51:54,786
medium voltage switchgear repairs at the Tom Bradley

2030
01:51:54,786 --> 01:51:55,586
Terminal.

2031
01:51:55,586 --> 01:51:58,524
Electrical pulse weight failures at terminal seven

2032
01:51:58,524 --> 01:52:02,806
and critical breaker failure at the Mercury Air Cargo facility

2033
01:52:02,806 --> 01:52:06,406
and the recent emergency repair of--

2034
01:52:13,475 --> 01:52:17,675
additional funding will support the ongoing switchgear

2035
01:52:20,562 --> 01:52:22,895
modernization efforts, s, emergency response capability,

2036
01:52:22,895 --> 01:52:22,921
technical training and specialized training services

2037
01:52:22,921 --> 01:52:25,421
necessary to maintain safe, reliable and compliant operation

2038
01:52:25,421 --> 01:52:27,339
of Laos electrical infrastructure.

2039
01:52:27,339 --> 01:52:29,972
The systems are critical to airport operations

2040
01:52:29,972 --> 01:52:33,252
and support essential fire life safety and security functions

2041
01:52:33,252 --> 01:52:34,226
throughout lax.

2042
01:52:34,226 --> 01:52:39,626
While not inclusivity goals were identified for the contract,

2043
01:52:44,452 --> 01:52:49,285
KT industries is certified with the City of Los Angeles

2044
01:52:49,285 --> 01:52:51,618
as both a local business enterprise and a small business

2045
01:52:51,618 --> 01:52:52,118
enterprise.

2046
01:52:52,118 --> 01:52:55,118
I'm available for any questions.

2047
01:53:01,380 --> 01:53:04,618
>> Are there any speakers for this item?

2048
01:53:04,618 --> 01:53:06,234
>> No, madam chair.

2049
01:53:06,234 --> 01:53:07,901
>> Any board have questions or comments?

2050
01:53:07,901 --> 01:53:07,912
>> Does this cover contract van Nuys as well or just

2051
01:53:07,912 --> 01:53:08,620
specifically lax?

2052
01:53:08,620 --> 01:53:10,620
>> Or Van Nuys.

2053
01:53:19,510 --> 01:53:20,509
>> Any other questions or comments?

2054
01:53:20,509 --> 01:53:24,266
Could I please have a motion to approve item number 37?

2055
01:53:24,266 --> 01:53:27,866
Thank you, Commissioner Roxborough for moving

2056
01:53:34,481 --> 01:53:36,148
and Commissioner Velasco for the second.

2057
01:53:36,148 --> 01:53:40,348
All those in favor please say aye.

2058
01:53:43,620 --> 01:53:46,200
Any opposed, say no.

2059
01:53:49,448 --> 01:53:50,450
The ayes have it.

2060
01:53:50,450 --> 01:53:51,575
Item number 37 is approved.

2061
01:53:51,575 --> 01:53:55,529
>> I just want to say thanks for presenting those items.

2062
01:53:55,529 --> 01:53:58,815
Foo is a member of the Maintenance Leadership team

2063
01:53:58,815 --> 01:54:01,650
and has been coming off of 24 hour employee barbecues.

2064
01:54:01,650 --> 01:54:01,740
I think all the executives in the front row,

2065
01:54:01,740 --> 01:54:01,122
they were late last night or early this morning,

2066
01:54:01,122 --> 01:54:04,674
who was there for both and he still did a great job.

2067
01:54:04,674 --> 01:54:07,740
Thank you for that.

2068
01:54:14,386 --> 01:54:17,986
Thank you for leading our team.

2069
01:54:21,270 --> 01:54:21,527
[Applause]

2070
01:54:21,527 --> 01:54:23,107
>> We are now on item number 38.

2071
01:54:23,107 --> 01:54:27,907
I would ask Mr. JP to come up.

2072
01:54:32,153 --> 01:54:33,300
Nope.

2073
01:54:33,300 --> 01:54:33,249
>> I look like him but I'm not him.

2074
01:54:33,249 --> 01:54:33,254
My name is Denise Semple.

2075
01:54:33,254 --> 01:54:33,261
I'm director of concessions and antenna relations.

2076
01:54:33,261 --> 01:54:35,940
I'm here to talk about the seventh amendment

2077
01:54:35,940 --> 01:54:38,292
to the terminal media operator concession agreement

2078
01:54:38,292 --> 01:54:40,292
with JC Decaux.

2079
01:54:50,925 --> 01:54:52,300
Has been here for about 20 years.

2080
01:54:52,300 --> 01:54:52,308
They were awarded their first contract in 2014.

2081
01:54:52,308 --> 01:54:52,315
They've been an incredible contract for us

2082
01:54:52,315 --> 01:54:52,323
and has built and made sure that things

2083
01:54:52,323 --> 01:54:54,730
like you see on the screen and Tom Bradley

2084
01:54:54,730 --> 01:54:56,538
are showing us content all the time and mostly luxury.

2085
01:54:56,538 --> 01:55:02,250
Their revenue to us has exceeded over $276 million over the term.

2086
01:55:02,250 --> 01:55:07,500
The current contract expires at the end of 2027.

2087
01:55:07,682 --> 01:55:12,482
The reason we're in front of you today

2088
01:55:18,169 --> 01:55:19,919
is we would like a year extension for them

2089
01:55:19,919 --> 01:55:22,340
to continue us through the Olympics,

2090
01:55:22,340 --> 01:55:25,227
continuous through the ongoing reconstruction

2091
01:55:25,227 --> 01:55:27,185
project of Tom Bradley, four and terminal five.

2092
01:55:27,185 --> 01:55:27,197
And because they were a partners in Paris of the Olympic Games,

2093
01:55:27,197 --> 01:55:28,905
we know they're capable of of bringing us

2094
01:55:28,905 --> 01:55:32,717
the top of the line experience with the Olympic team.

2095
01:55:32,717 --> 01:55:36,317
And overview of this amendment is

2096
01:55:41,439 --> 01:55:43,814
this will get us an additional year through the Olympics.

2097
01:55:43,814 --> 01:55:43,821
It will also during 2028 provide us

2098
01:55:43,821 --> 01:55:46,196
an increase in revenue share from our current 70% to 73%,

2099
01:55:46,196 --> 01:55:50,274
which is about a $1.4 million increase in revenue

2100
01:55:50,274 --> 01:55:51,618
in that year.

2101
01:55:51,618 --> 01:55:55,426
It enables JC to to upgrade the integrated media

2102
01:55:55,426 --> 01:55:59,626
system in the Tom Bradley, which includes

2103
01:56:09,369 --> 01:56:11,360
all of the storyboard and the Tom tower,

2104
01:56:11,360 --> 01:56:11,430
the Bon Voyage wall, all of which

2105
01:56:11,430 --> 01:56:11,179
have not been upgraded since they were installed in 2012.

2106
01:56:11,179 --> 01:56:13,260
There's a cost to that of about $25 million.

2107
01:56:13,260 --> 01:56:17,582
This will also allow Jcdecaux to finalize the installation

2108
01:56:17,582 --> 01:56:20,506
of all the things in terminal four, whatever

2109
01:56:20,506 --> 01:56:24,338
assets we allow them to install in terminal five.

2110
01:56:24,338 --> 01:56:27,460
We do is we promise you previously, planned

2111
01:56:27,460 --> 01:56:33,260
to release an RFP in 2027, for a new or continuing terminal media

2112
01:56:33,260 --> 01:56:33,594
operator.

2113
01:56:33,594 --> 01:56:37,846
We will host an industry day, we have talked about

2114
01:56:37,846 --> 01:56:42,460
to encourage other companies and make sure

2115
01:56:49,618 --> 01:56:52,246
that everybody can present their ideas so that we understand

2116
01:56:52,246 --> 01:56:52,258
the reality of what could be coming to us in the future.

2117
01:56:52,258 --> 01:56:54,500
And to have them be part of our discussion.

2118
01:56:54,500 --> 01:56:56,450
As Commissioner Daniels mentioned .

2119
01:57:04,127 --> 01:57:07,127
Do you have any questions?

2120
01:57:14,434 --> 01:57:17,434
>> Do you have any questions?

2121
01:57:20,500 --> 01:57:23,471
>> Do we have any speakers for this item?

2122
01:57:23,471 --> 01:57:25,471
>> Yes.

2123
01:57:25,975 --> 01:57:27,975
Adam Sullivan.

2124
01:57:31,951 --> 01:57:33,369
>> Good morning.

2125
01:57:33,369 --> 01:57:33,377
Vice president and esteemed members of the board.

2126
01:57:33,377 --> 01:57:33,919
Good morning.

2127
01:57:33,919 --> 01:57:38,774
I'm here to testify to the two decade partnership between LAWA

2128
01:57:38,774 --> 01:57:40,774
and JCDecaux.

2129
01:57:42,334 --> 01:57:44,167
The collaboration that stands as a benchmark

2130
01:57:44,167 --> 01:57:44,176
for public private success in the airport media concession

2131
01:57:44,176 --> 01:57:44,177
industry.

2132
01:57:44,177 --> 01:57:44,188
I can proudly say that over the duration of this contract

2133
01:57:44,188 --> 01:57:44,196
we have not just managed an advertising program.

2134
01:57:44,196 --> 01:57:45,571
Working collaboratively with Lawa

2135
01:57:45,571 --> 01:57:48,986
fundamentally transformed it and delivering immense value

2136
01:57:48,986 --> 01:57:51,386
across three core pillars.

2137
01:58:03,176 --> 01:58:06,733
We transform the media program into a premier revenue engine.

2138
01:58:06,733 --> 01:58:06,740
When COVID 19 decimated global air travel,

2139
01:58:06,740 --> 01:58:09,448
this close collaboration ensured our partnership did not crumble.

2140
01:58:09,448 --> 01:58:10,996
Demonstrated an remarkable agility

2141
01:58:10,996 --> 01:58:13,996
and our advertising revenues have

2142
01:58:14,506 --> 01:58:16,186
increased beyond COVID levels.

2143
01:58:16,186 --> 01:58:18,160
Even though overall passenger numbers

2144
01:58:18,160 --> 01:58:19,970
have not yet fully recovered.

2145
01:58:19,970 --> 01:58:21,666
This momentum was further underscored

2146
01:58:21,666 --> 01:58:23,892
by our immensely successful revenue

2147
01:58:23,892 --> 01:58:26,946
performance due to the recent World Cup

2148
01:58:26,946 --> 01:58:30,360
providing our collaborative strategy successfully maximizing

2149
01:58:30,360 --> 01:58:33,636
financial yield and protect Laos baselines

2150
01:58:33,876 --> 01:58:36,876
and performs wider industry turns.

2151
01:58:37,306 --> 01:58:40,544
Secondly, we have spearheaded the complete reinvention

2152
01:58:40,544 --> 01:58:42,419
of the airport media environment establishing

2153
01:58:42,419 --> 01:58:45,736
an ecosystem where digital is not the dominant media format.

2154
01:58:45,736 --> 01:58:48,920
Looking ahead, the proposed contract extension

2155
01:58:48,920 --> 01:58:53,466
is absolutely critical to the future proofing of Los media

2156
01:58:53,466 --> 01:58:55,466
infrastructure.

2157
01:58:59,530 --> 01:59:01,530
May I continue?

2158
01:59:12,644 --> 01:59:13,788
>> Thank you.

2159
01:59:13,788 --> 01:59:14,932
You're done.

2160
01:59:14,932 --> 01:59:17,890
>> Any questions or comments from the board?

2161
01:59:17,890 --> 01:59:20,494
With that, I will ask for a motion

2162
01:59:20,494 --> 01:59:23,273
to be made to approve item number 38.

2163
01:59:23,273 --> 01:59:26,273
Thank you, Commissioner Lobo moved

2164
01:59:31,591 --> 01:59:33,991
and Commissioner Roxborough seconded.

2165
01:59:34,446 --> 01:59:38,646
All those in favor, please say aye.

2166
01:59:43,434 --> 01:59:45,834
Any opposed, say no.

2167
01:59:47,613 --> 01:59:49,453
The ayes have it.

2168
01:59:49,453 --> 01:59:50,828
Item number 38 has been approved.

2169
01:59:50,828 --> 01:59:52,911
Are there any speakers on moving to the next item?

2170
01:59:52,911 --> 01:59:57,711
Are there any speakers on closed session items?

2171
02:00:00,832 --> 02:00:01,731
>> No.

2172
02:00:01,731 --> 02:00:01,743
>> The comment period is now closed I would like to turn

2173
02:00:01,743 --> 02:00:01,754
the time over to City Attorney before we break into closed

2174
02:00:01,754 --> 02:00:01,755
session.

2175
02:00:01,755 --> 02:00:01,758
>> Thank you.

2176
02:00:01,758 --> 02:00:01,766
We were now going to the closed items

2177
02:00:01,766 --> 02:00:03,516
to discuss those items listed on the closed session agenda.

2178
02:00:03,516 --> 02:00:05,639
We will return back and report any action

2179
02:00:05,639 --> 02:00:08,639
taken in the open session.

2180
02:00:25,160 --> 02:00:27,160
>> Thank you.

2181
02:00:27,911 --> 02:00:30,911
[Meeting has entered closed session]