[0:03] >> Good morning.
[0:05] Welcome to the Board of Airport Commissioners special Meeting
[0:09] of August 27th 2026.
[0:12] This meeting is now in order.
[0:15] The time is 10:01 a.m.
[0:19] Please call the roll.
[0:26] [Roll call]
[0:33] >> President Johnson is absent.
[0:36] >> Good morning and welcome to the August meeting of the Board
[0:38] of Airport Commissioners.
[0:39] One of the traditions that I particularly
[0:41] appreciate before our board meetings
[0:43] is the opportunity to spend time with employees across the LAWA
[0:48] team and learn more about the work that is done every day
[0:51] and the people that is doing it.
[0:53] This morning my fellow commissioners and I
[0:55] had the pleasure of meeting members
[0:57] of our environmental planning team
[0:58] whose work helps ensure that we continue
[1:00] to transform our airports and we do so
[1:02] thoughtfully and responsibly.
[1:03] To our environmental planning colleagues
[1:07] that are here today thank you for spending time
[1:08] with us this morning and thank you for the work that you do.
[1:12] A very important work that you do on behalf of LAWA our guests
[1:16] and the communities we serve.
[1:17] Can ask that the members of the environmental Planning team
[1:20] please stand so you can be recognized?
[1:23] [Applause] When we last met in July,
[1:33] Los Angeles was nearing the conclusion
[1:36] of an extraordinary few weeks as one of the host cities
[1:40] for the FIFA World Cup games.
[1:41] With the tournament now behind us
[1:43] I want to recognize the tremendous efforts that
[1:45] went into welcoming over 5.1 million passengers in July
[1:50] from around the world and keeping our airports
[1:52] operating safely and efficiently throughout this historic event.
[1:55] What we accomplished was much more than managing a busy travel
[1:58] period.
[1:59] It demonstrated what Los Angeles is
[2:00] capable of when our airport committee works together
[2:03] toward a common goal.
[2:05] It also gave us an important opportunity
[2:08] to learn more about the preparations needed
[2:11] for what comes next.
[2:13] Last month we also marked two years
[2:16] until the 2028 Olympic and Paralympic Games.
[2:19] The World Cup gave us an opportunity
[2:21] to demonstrate our readiness on the global stage but at least 28
[2:26] will be on an entirely different scale.
[2:28] That makes the work underway our across our airports even more
[2:35] important.
[2:35] We are not simply preparing for a few weeks in 2028.
[2:38] We are making investments that will improve the airport
[2:41] experience for millions of travelers
[2:42] and benefit our region for decades to come.
[2:44] One important example of that progress
[2:51] came earlier this Month when LAWA was awarded a $289 million
[2:57] grant from the Federal Aviation Administration.
[3:00] This grant was going towards supporting ongoing construction
[3:03] of new access and roadways.
[3:04] 20% of this grant is going to be dedicated to labor costs
[3:08] covering over 556,000 work hours.
[3:11] 556,000 work hours.
[3:14] The funding will support the airfield and terminal
[3:16] modernization program roadway improvements Project
[3:19] which will separate airport traffic from local traffic
[3:23] and is expected to significantly reduce congestion
[3:27] on Sepulveda Boulevard while providing
[3:30] more efficient access to LAX.
[3:32] That's at least clap for that.
[3:35] [Applause] That this is an important investment
[3:37] not only in our infrastructure but in the experience
[3:40] that we want to provide for our travelers and the surrounding
[3:43] communities.
[3:44] It also builds upon the significant investments already
[3:46] underway to transform LAX into a more
[3:51] efficient, welcoming and distinctly Los Angeles gateway.
[3:54] I want to thank our federal partners for their support
[3:57] and everyone at the LAWA team who helps secure this funding
[4:02] and who continues to move this critical project forward.
[4:04] Last week we celebrated National Aviation Day and an opportunity
[4:07] to recognize not only the incredible role aviation plays
[4:10] in connecting people and economies around the world
[4:13] but also the people who make that possible every day.
[4:17] Across LAX and Van Nuys airports, thousands of people
[4:22] work around the clock to keep our airports moving.
[4:24] As commissioners, we have the privilege
[4:25] of seeing how much work happens behind the scenes
[4:27] to operate and transform these airports.
[4:29] I want to close by saying thank you.
[4:36] Mr. Ackerman, I now turn it over to you for your presentation.
[4:43] >> Thank you very much.
[4:44] I'm going to start with our key airport indicators.
[4:47] I'm just going to get a snapshot of different metrics
[4:50] that we track and measure our performance.
[4:53] I want to talk about satisfaction and cleanliness.
[4:56] You can see we've been making some improvement trends
[4:58] and those scores have planned lately.
[5:00] But in some cases, we're always striving for improvement
[5:03] with the intense amount of work we're
[5:05] doing with the disruptions of our construction,
[5:08] and at times its good.
[5:10] It's a meaningful accomplishment just to tread water.
[5:13] We believe the investments we're making right now
[5:15] will be manifesting themselves later.
[5:17] I want to commend the teams that are working hard
[5:20] to maintain our commitment and satisfaction scores and all
[5:23] the work that we're doing.
[5:25] Our sustainability initiatives also
[5:26] continue to produce results.
[5:27] You can see organic waste diversion has increased
[5:33] double digits year over year and we're continuing
[5:35] to grow our workforce.
[5:36] This is part of our people's first strategy
[5:38] to get properly staffed get our teams property staff so we
[5:42] can better serve our customers.
[5:43] On August 4th, Community relations team and airport
[5:46] police hosted National Night Out at the LAX exit.
[5:50] Brought together employees and law enforcement partners
[5:53] and airport stakeholders members of our community,
[6:02] and airport police cadets welcoming guests
[6:06] with food drinks and music and giveaways,
[6:09] and provided resources and importantly information
[6:12] on our key projects.
[6:12] I was able to join Councilman Tracy Park thanking our law
[6:16] enforcement personnel and our public safety
[6:18] partners for this service.
[6:19] We did it at this location because instead of just keeping
[6:23] it in general to the LAWA family,
[6:27] we got to show public around the country and around the world,
[6:34] around LA, we got to show off our law enforcement
[6:36] partners who keep us safe.
[6:38] A couple of days later, we welcomed some different team
[6:42] members and their children with Bring Your Children to Work Day.
[6:46] Children aged 6 to 17 got an insight
[6:48] to look at what makes our airports run from airport
[6:50] police, the canines, hands on activities and opportunities
[6:54] to explore and learn about careers in aviation
[6:56] that the parents are pursuing.
[6:57] I had the pleasure of welcoming kids that morning.
[7:00] It was really cool to see the excitement and the curiosity
[7:03] and we hope that we inspired a few of them
[7:06] to join our team for several years down the road.
[7:10] Earlier this month we brought together La managers
[7:13] across the airport and in this very room
[7:16] for a dedicated session that focused
[7:19] on our culture and the role that leaders and frontline
[7:22] leaders play in shaping it.
[7:24] This is also part of our broader people
[7:26] first work and taking a more intentional and measurable
[7:29] approach to defining the culture that we
[7:31] need to achieve our goals and deliver on the transformation
[7:34] that we promised.
[7:35] Our managers are critical of that effort
[7:37] because they are the link between the organizational
[7:39] values and how those values show up every day for our employees.
[7:43] Gave our managers an opportunity to help
[7:46] shape the conversation and this work
[7:47] will continue as we develop a shared cultural framework
[7:51] and more intentional about how we embed it
[7:53] and drive it through the organization.
[7:55] Last month We hosted LA SAN and LA DWP
[8:07] at our central Italy plant to begin commissioning discussions
[8:11] to a new recycled water supply from the significant long term
[8:15] effect dating all the way back to 2018
[8:17] and spanning five construction projects to build
[8:19] the infrastructure necessary to bring the water to LAX.
[8:21] We're getting closer to being equipped
[8:23] and to receive that recycled water.
[8:24] It's a great example of how partnerships across the City
[8:31] agencies driven by the administration
[8:34] are helping build a more sustainable and resilient
[8:36] airport.
[8:36] Earlier this month, the girls build LA Career
[8:41] exploration program celebrated the completion of a three week
[8:44] summer program with 78 students representing 32 Los Angeles area
[8:47] high schools.
[8:48] Students received hands on experience at LAX
[8:50] and venues toured.
[8:51] Vice President and Commissioner Laboy
[8:54] joined the girls at the commissioning ceremony,
[8:56] along with representatives from Aruba's office and education
[9:01] labor and industry partner.
[9:03] The program is primarily supported
[9:04] by the City of Los Angeles workforce Innovation
[9:06] and Opportunity Act Funding.
[9:10] LAWA's roadways, utilities and enabling route project
[9:16] has been named honors 2026 best Project in Southern California
[9:19] Aviation Transit category.
[9:20] And it may not be one of our most visible projects
[9:24] but it's been is essential to making our transformation
[9:27] possible pure support Skylink, our connection to Metro
[9:32] and many other major improvements
[9:34] across the LAX campus.
[9:35] It's been a tremendous recognition
[9:37] of years of complex work and collaboration
[9:39] by team and all of our project partners.
[9:42] I want to congratulate everyone that has played
[9:44] a role in this achievement.
[9:47] Pleased to share that we've got several recent additions
[9:51] to our leadership team.
[9:55] Aaron Trapp has been promoted to Assistant General
[9:58] manager and Chief strategy and external affairs officer.
[10:02] Aaron will be leading affairs, in our communications,
[10:06] major events and enterprise strategy.
[10:09] Dylan Petty recently joined Lawa deputy executive director
[10:12] of Capital Programs reporting -- aviation experience will help
[10:17] strengthen the planning, and deliverance of our planning
[10:21] governance.
[10:21] The Planning Commission will also
[10:23] transition to the development under Dylan's leadership
[10:26] and Jackie Grass has joined our team
[10:28] and has been appointed Deputy of Strategy innovation
[10:31] and experience reporting to Courtney.
[10:33] Will help lead our experience strategy and advance innovation
[10:36] across terminal operations and guest experience
[10:38] in public arts and strategic projects.
[10:41] Mr. Grass has decades of private sector
[10:44] experience in major operations.
[10:47] Guest experience and is going to be a welcomed addition
[10:51] to our team.
[10:52] These leadership additions are all
[10:54] about strengthening coordination and accountability across Lawa
[10:57] and ensuring that we have the right leadership structure
[10:59] and expertise in place as we manage our transportation
[11:02] to prepare for the 2020 Olympic and Paralympic Games.
[11:07] Last month we welcomed 40 new team members
[11:10] across different areas of divisions and groups.
[11:12] Thank you for the wow.
[11:15] Thanks a lot.
[11:17] If you see these folks around the airport,
[11:19] give them a warm welcome to the family.
[11:22] Thank you so much to our HR team who's worked so hard to recruit
[11:26] and attract these team members.
[11:28] This concludes my CEO update.
[11:31] I would now like to move to management report
[11:36] from miss Strap on FIFA.
[11:40] >> You talked about the culture at LAWA.
[11:44] I've been here seven years.
[11:46] I cannot say enough about the culture.
[11:49] Meaning that I represent mostly business by themselves.
[11:57] And you folks at LAWA are remarkable,
[12:03] and have been every single day.
[12:07] I talk to you guys to many of my clients
[12:08] when they complained about certain things.
[12:10] I talk about how there is a lot of people
[12:12] that talk about teamwork.
[12:13] You guys are teamwork.
[12:15] The job you guys do is remarkable.
[12:17] If you knew me better, I'm pretty critical of people's work
[12:20] habits.
[12:21] So I give that with great sincerity and appreciation.
[12:30] >> Thank you very much, commissioner.
[12:35] Mrs. Trap.
[12:39] >> Good luck.
[12:41] >> Thanks for the kind words on behalf of the whole team.
[12:43] We appreciate that, and we're working towards building
[12:46] a strong culture.
[12:47] This is my first time.
[12:53] Good morning.
[12:54] I have the great honor of leading the team and strategy
[12:56] and external affairs which includes the major event group.
[12:59] And recently hosted the FIFA World Cup
[13:01] all the way through the quarterfinals
[13:02] and had an extraordinary experience
[13:04] for the city and the team.
[13:06] I just want to highlight a few things for all of us
[13:09] as we reflect on FIFA and look forward the Olympic in 687 days.
[13:15] There was a lot of talk about in the run
[13:19] up to FIFA about whether it would be successful
[13:21] or if the hotels were going to be filled.
[13:23] The good news is that according to the host committee
[13:26] we outperformed our expectations for FIFA
[13:29] and we outperformed most of the cities who got to host.
[13:32] FIFA was comprised of 13 countries and 16 cities.
[13:38] 25 airports.
[13:38] I would venture to say that LA performed among the best if not
[13:42] the very best.
[13:43] We outperformed our projections by more than 50%
[13:47] which is pretty incredible.
[13:49] And more than half of the economic impact
[13:51] came from visitors.
[13:52] You can see where I'm going here.
[13:53] All of these people for the most part came through LAX.
[13:56] We do know that people who are international visitors
[14:00] spend an average three times what others do.
[14:03] We were thrilled overall with the results of this
[14:05] and we were also thrilled with how our airport
[14:07] and teams performed.
[14:08] I'm just going to give you a few of the highlights
[14:10] as well as some of the lessons learned.
[14:12] Eight matches and 15 teams period
[14:14] when you make a plan for something
[14:18] like this, you make it around the elements like safety
[14:22] and how teams are going to come out
[14:24] and people are going to communicate.
[14:25] What you don't want to do is disrupt mainstream travelers
[14:28] because the thing is that it's a challenge for people who
[14:30] are coming here on regular basis and we also
[14:32] want to make it feel like the World
[14:33] Cup, the magic of these types of international events.
[14:36] You build a plan for that.
[14:37] The plan doesn't survive first contact.
[14:39] So there are some lessons learned.
[14:42] We certainly performed well in many ways.
[14:45] We couldn't have done it without our partners.
[14:47] We probably have the best partners at TSA in the country
[14:50] as we've seen throughout the year.
[14:52] So from TSA to the border to homeland security,
[14:57] people worked in lockstep because there
[14:59] was so much planning amongst these partners.
[15:01] No hiccups on safety and security
[15:02] which is exactly the foundation we need to build.
[15:04] I attribute that to the team's good work and preparation.
[15:07] So we had improvements that were anticipated
[15:11] and a few that weren't I'll talk through some
[15:13] of the lessons learned with that.
[15:15] You can see the matches on the screen here and the teams
[15:19] that we moved through and ultimately 15 teams
[15:21] came through from countries around the world.
[15:24] I'll give you a peek behind the scenes.
[15:27] When I talk about the Olympics coming.
[15:29] This goes for FIFA as well.
[15:31] It's not about the people it's about the luggage.
[15:35] They have a lot.
[15:38] For FIFA -- what you see on the screen on the left is one
[15:43] team's personal bags.
[15:44] I think the team from Jordan on the right
[15:47] are the teams from Switzerland and Austria.
[15:50] You can see the types and most of the baggage
[15:53] came in in cubes which is really helpful.
[15:56] We did not find that those -- we have seen that in the Olympics
[15:59] the sheer volume of bags that come in when they're bringing
[16:02] soccer balls is not quite as impactful as it will be when
[16:05] they're bringing in canoes and pole belts and horses and things
[16:09] that are going to challenge our baggage system.
[16:12] The teams had a good plan for putting together
[16:16] the baggage handling and the overall performed
[16:18] with very few hiccups.
[16:19] We had a plan for most of the teams to arrive via charter.
[16:24] We want to keep those movements outside of the main terminal
[16:28] area if we can for security purposes
[16:30] and to make sure that we don't disrupt the main flow of.
[16:32] You can see some of the pictures here that our team had
[16:34] a great time going out on the runways
[16:36] to take some pictures with the folks.
[16:39] It was important to us that the teams
[16:42] felt the LA welcome from that moment
[16:44] and that came from our teams.
[16:45] The surface that you see went just as a chance for our teams
[16:48] to have selfies.
[16:49] It was a chance for them to feel the LA love.
[16:52] So when you lose, you go home.
[16:57] You are no longer brings you around the country.
[16:59] You typically contact your national airline and go home.
[17:02] Most of the departures came to the terminals.
[17:04] You can see our teams putting people
[17:07] through the front door of mostly Tibet.
[17:09] There's Nicole Carousel who would
[17:10] be giving this presentation but she's on a well-deserved day
[17:14] off.
[17:14] I want to recognize her work and her team it was so good.
[17:19] Making sure these front door departures largely
[17:22] didn't impact our operations.
[17:23] And it wouldn't be LA X without a red carpet.
[17:27] So our VIPs were literally treated
[17:29] to a red carpet experience in one of our graduates.
[17:32] This move was copied by airports around the country
[17:34] because it's just a good idea--
[17:37] how do you make people feel just a little?
[17:40] We talk about when we're stars, we
[17:44] talk about that feeling of arrival,
[17:46] and that's the little red carpet.
[17:48] And through our events, we talk about employees.
[17:51] This is what we're really most proud of
[17:53] and what we worked hard on.
[17:54] FIFA came and went over 28 days, rather quickly.
[17:58] We wanted to make sure that our employees really got
[18:02] to participate in that magic.
[18:03] We were able to procure just a handful of tickets
[18:06] for the actual games, but dozens of tickets for the FIFA Fan Fest
[18:12] at SoFi Stadium where people could go and watch
[18:14] games and participate with each other and cheer the teams on.
[18:18] We had almost a third of our employees
[18:20] signed up for the raffle for this, which was amazing in terms
[18:23] of participation.
[18:23] We never get that kind of participation.
[18:26] Maybe we can give some of these away for the employee survey
[18:29] and give our numbers even higher.
[18:31] We also hosted a watch party in this building
[18:34] on the fifth floor.
[18:35] We really tried to give employers a chance
[18:38] to participate in the FIFA fund, and we've
[18:40] got very good feedback on that.
[18:42] That's our chief people officer.
[18:44] Wearing one of the FIFA scarves that we gave out
[18:47] to the employees along with the soccer balls
[18:48] bringing the good vibes to the whole team.
[18:51] We have a few pictures of what that looked like.
[18:53] You have some folks in the audience,
[18:55] and you've got one of these things.
[18:56] You can give a whoop, but I won't name other names.
[19:00] But I want to recognize some of the great teams.
[19:04] You have the gems, the incidentals,
[19:07] and there's Nicole, Lieutenant Gwen.
[19:10] Just a few of the folks that made it happen.
[19:14] And finally look and feel, we were the only airport
[19:17] that would have our very own official merchandise
[19:19] store in the airport.
[19:21] That's our T7 store there, we were
[19:23] able to get some very cool activations on the garages
[19:25] and on the various buildings around campus.
[19:27] These were extremely popular for selfies.
[19:29] I hope we didn't shove anybody out
[19:31] of the way to get the picture of the countdown clock,
[19:33] but that thing was regularly populated
[19:34] with people wanting a picture with the actual countdown clock.
[19:40] Really great activation from the team.
[19:43] Largely proceeded without hiccups.
[19:45] You learn some things throughout the course of the business.
[19:48] I would say, advanced planning matters so much.
[19:52] You can plan to 100, but you're never going to get more than 90.
[19:56] And you have to be able to respond.
[19:58] The fact that we had a good plan in such good coordination
[20:00] was the partners, that's what made
[20:02] it work when we heard six hours beforehand that the team was
[20:05] going to land, that we hadn't expected.
[20:16] The team was able to rally in that case because
[20:20] of the early coordination.
[20:21] The other piece of it is the regional cooperation
[20:23] was really important to us.
[20:25] These people were going all over the community.
[20:27] Their home bases were around the city, and we had to find ways
[20:32] to make sure that people got to where they needed to be.
[20:35] This has been some months now that I presented
[20:37] on what we learned from Paris when we observed the last summer
[20:43] Olympics.
[20:44] So people flooding the zone was sort of the key lesson
[20:48] from Paris, not building a bunch of new things
[20:51] that are not needed.
[20:51] So we're a no build Olympics.
[20:53] We know that people are going to be the foundation.
[20:55] And this was absolutely born out from FIFA.
[20:58] Preparing the team and giving the team
[21:01] opportunities to understand where
[21:02] they were going to be irregular operations, giving people
[21:05] a chance to help out when people are coming in.
[21:07] Those are the things that made the difference and those are
[21:10] the things that are ultimately going
[21:11] to have to take into the Olympics
[21:13] because I say that the World Cup is 8 games over 28 days,
[21:21] and that's something that we do in major events
[21:25] because every day is a major event in Los Angeles.
[21:28] The Olympics is seven Super Bowls a day
[21:31] for 14 days of events, a little break in the Paralympic.
[21:35] It's three Super Bowls a day.
[21:40] But FIFA was a success, an even bigger success than we thought.
[21:44] Hopefully the folks felt the magic
[21:47] and didn't feel too much pain during the operation.
[21:50] >> Can I make a quick comment?
[21:51] I was lucky enough to see these landings myself,
[21:54] and the commercial ones.
[21:56] I want to take a personal note to thank you.
[21:58] Nicole worked so hard on that as well as the entire team,
[22:01] as well as our airport police and the security partners
[22:05] and it's very dicey, geopolitically
[22:07] in the news moments that required real precision.
[22:11] Kudos to the team for executing that >> Thank you
[22:19] for that recognition.
[22:20] I think Josh is here.
[22:21] Josh worked on the community relations
[22:23] team and the whole team for major events really made
[22:25] that happen.
[22:26] We appreciate that.
[22:29] >> Thank you.
[22:30] Are there any speakers on this presentation?
[22:36] >> No.
[22:38] >> Are there any comments or questions from other
[22:40] commissioners?
[22:42] >> I just wanted to echo what Courtney said,
[22:46] Commissioner Labeau.
[22:47] The fact that you put on an event at this length of time
[22:51] in an international basis and you
[22:53] don't read on the front page of the LA times, anything
[22:56] gone wrong.
[22:56] We always hear about things that go wrong.
[23:02] When you don't hear anything, most of us
[23:04] know how remarkable it is in this area.
[23:06] So you should pat yourself on the back for that.
[23:09] And on a serious note, I want you
[23:11] to talk more about the Paraguay game,
[23:13] about America we won 4 to 1.
[23:16] You should never leave that game early.
[23:18] Sometimes you see the most remarkable goals.
[23:24] >> That's right.
[23:27] No comment.
[23:29] >> Point taken.
[23:31] >> Any other comments from commissioners?
[23:33] >> Thank you very much.
[23:35] We're going to hear from Mr. Tabit on our Procurement
[23:38] and Commercial Excellence program,
[23:40] and then JP comes up to the podium.
[23:42] You're going to see a little while later
[23:45] a remarkable transformation of terminal five
[23:49] and the future of La.
[23:50] We talked a little bit about the culture that we're transforming.
[23:54] We're also looking for new ways to do work.
[23:58] We have a backlog of things that need
[24:00] to be done across all of the verticals
[24:02] that we are working on.
[24:04] We have come up with a novel way to support our team
[24:09] and make them even more effective
[24:11] and realize some of these gains for LAWA Los Angeles even
[24:18] quicker.
[24:18] Some of that is coming into fruition.
[24:20] We've been talking about it for six months.
[24:22] We're actually going to show you results today.
[24:24] Wanted to have JP give you a little bit
[24:25] of an overview of what we're doing.
[24:27] We'll have more of this to come in the coming months
[24:29] as we build out this program.
[24:34] >> Thank you, John.
[24:36] Vice President, Commissioners, I'm
[24:40] here to show you the first results of the Procurement
[24:42] and Commercial Excellence Program
[24:43] that we initiated at the beginning of the year.
[24:45] We have concrete results that I will be showing you today.
[24:49] The program was initially set up at the beginning
[24:53] of the year with a focus on looking on our revenue streams.
[25:01] Not so much on the procurement policies
[25:02] but mostly revenue streams and to benchmark
[25:05] against peers and industry and market standards.
[25:08] After a brief diagnostic period, we went into the implementation
[25:13] and we have identified approximately 50 opportunities.
[25:19] Of those 50 opportunities, I'm here today talking about 16
[25:26] concrete-- two I will not touch upon now,
[25:36] but they will be presented next board meeting in September
[25:38] because we are under contract discussions.
[25:42] The 16 that we're bringing to you today
[25:46] we're bringing additional annual revenue increase of 12.4 million
[25:54] per annum.
[25:56] This will just bring us up to market standards.
[26:00] I need to reiterate that we're coming back to market standards
[26:03] and we are not becoming expensive, for certain people
[26:10] may do.
[26:10] Within the next day and the next session in September
[26:14] we will be introducing to you approximately 20 million
[26:16] in additional revenue per annum.
[26:19] So this all started out at the beginning of the year.
[26:22] We are in the process of evaluating a property management
[26:26] system.
[26:27] We're putting all of the data together
[26:28] in accumulating all the data to get ready
[26:30] for the implementation.
[26:31] And as part of that data, we looked at every single agreement
[26:35] that we have in place with airlines or other third parties.
[26:42] Better plan our future as we go to do RFPs or negotiations,
[26:51] that's it obvious that 17 of these agreements
[26:54] had been on hold over for a number of years
[27:01] for several reasons.
[27:06] Over the backlog, the cargo monetization program--
[27:11] COVID backlog.
[27:14] So what we did is we took a look at the deeper dive
[27:16] into those holdovers and see what
[27:17] was done in the last years, what are the contractual provisions?
[27:21] And in April we came to the board for approval
[27:23] for the ground rents, this is where we now
[27:25] started looking at the building rents that have not been adapted
[27:29] for not only the past four years,
[27:32] but also for a period prior to the agreements expiring.
[27:37] So I went to market and we benchmarked against peers as I
[27:41] mentioned earlier -- this is where we started defining
[27:55] the course of action for those holdover.
[27:59] Keeping in mind that we have to evaluate and maintain
[28:03] operation continuity as we look at the overall picture.
[28:07] We are in the process of modernizing all of our assets,
[28:17] be it terminals, be it cargo, real estate, access roads.
[28:26] And to maintain efficiency, we suggested
[28:28] that we will continue to do as we analyze
[28:30] what is our best way forward.
[28:34] To give these agreements an interim space for a period
[28:38] of two years, one plus one.
[28:42] That will allow us to think on the bigger and longer picture.
[28:47] Our aim is to improve efficiency and productivity, specifically
[28:54] within the critical areas because we're so constrained
[28:56] in terms of space.
[28:57] And potential growth in terms of opportunities.
[29:01] That said, We renegotiated the agreements.
[29:06] And as you can see here, Just these 16 or 17
[29:14] would have generated the baseline revenue of 47 million,
[29:17] now we anticipate an increase over 24.8 over two years.
[29:21] When I come back to what I said earlier,
[29:23] 12.4 annual increase in the range of building
[29:26] grants from 35 to 45.
[29:32] Renting started prior negotiations
[29:33] with certain carriers and other third parties.
[29:37] The reason for one plus one is we
[29:41] are in the process of developing our long term real estate
[29:44] strategy.
[29:45] It is also mentioned in a prior board session,
[29:49] we are still in the discussions on the overall organization
[29:52] program.
[29:53] As these develop, we maintain flexibility and continuity
[29:58] and ensure that everyone is operating here at LAWA
[30:04] has a valid agreement.
[30:08] With that said, Just a brief introduction to cargo.
[30:14] Cargo has been declining since COVID.
[30:16] We're in a good path of growth again.
[30:18] We'll be discussing on how we discuss with the incumbents
[30:21] that we're talking about here and others that
[30:23] have non-expired leases and how to improve
[30:27] through the introduction of technology and other means
[30:33] to improve utilization per square foot, which means that we
[30:38] will be evaluating the contractual arrangements
[30:41] that we will have with those entities.
[30:44] So give them potentially longer term
[30:48] to be able to depreciate over a longer period of time.
[30:53] Thank you for your time.
[31:00] >> I have a question.
[31:01] We're going to ask if there's any comments
[31:02] for this presentation?
[31:06] >> No.
[31:07] >> We'll open it up for commissioner comments
[31:07] or questions.
[31:07] >> Sorry to jump ahead.
[31:10] Thank you for the presentation.
[31:12] Very interesting and I love the direction we're going in.
[31:14] When you are thinking about projecting cargo growth
[31:16] for the future, what are the things
[31:18] that you are taking into consideration for projecting
[31:20] that growth, since we've kind of been on a downturn since COVID?
[31:29] Give me an idea of things you're thinking about
[31:31] for projecting cargo growth.
[31:32] >> We're looking at multiple aspects.
[31:37] We're looking to see the reason why there have
[31:39] been potential loss of cargo.
[31:43] The market has been potentially growing.
[31:45] We have not invested in a period of 25 years in cargo facilities.
[31:48] That could be one of the aspects.
[31:50] We are looking at overall GDP.
[31:53] We have seen from COVID and beyond,
[31:56] we had some geopolitical concerns.
[31:58] So traffic from Asia has dropped.
[32:04] We are the main gateway from Asia.
[32:05] As part of our air service development,
[32:06] we're now going back to market looking
[32:08] at how we can improve discussions and negotiations
[32:11] with potential partners from Asia and bring back the traffic.
[32:16] As we develop our cargo facilities and our sequel
[32:21] process that has been started, we
[32:24] aim to provide state of the art facilities
[32:26] that will help increase our competitiveness with respect
[32:31] to other airports.
[32:35] >> I have a question.
[32:38] The infrastructure plan for the cargo modernization,
[32:41] you're going to come back to us with that?
[32:43] Do you submit a timeline for that?
[32:46] >> Correct.
[32:47] Back in April, we said we're going
[32:49] to have a six by six in terms of the first six months
[32:51] will be to evaluate and agree on the technical, mechanical side
[32:57] concerns and get those over the hurdles.
[33:02] Then starting contractual negotiations.
[33:06] End of the year will be a pivot point
[33:09] where we may need a decision or not.
[33:12] Ultimately, the target is to come to you
[33:14] in April of next year latest.
[33:17] >> That was a one year extension?
[33:22] >> What percentage of revenue is generated by cargo?
[33:27] >> I have to get back to you on that.
[33:30] I don't have the number on top of my head,
[33:32] but our greatest revenue generators
[33:33] would be the parking, commercial and advertising.
[33:38] We don't see cargo as a big revenue generator.
[33:42] We see it as a support service to attract airlines.
[33:47] It is a service that we need to have,
[33:50] and we need to provide because sometimes the belly
[33:53] cargo in passenger airlines can pivot from not making money
[34:00] to making money on certain routes.
[34:03] >> I'd be interested you comparing LAWA to the other US
[34:14] airports, how we match up.
[34:18] There is a business opportunity.
[34:19] >> Definitely a business opportunity.
[34:22] Number two in the country for cargo if you don't consider,
[34:33] DHL, Fedex.
[34:34] And we've been talking to some of our integrators
[34:36] who show commitment and want to grow within our footprint.
[34:39] We are very competitive, we would like
[34:42] to regain some lost ground.
[34:44] >> This has been an area where lax for various reasons over
[34:47] the years hasn't really invested in this business.
[34:50] We've not had dedicated staff whatsoever dedicated
[34:53] to this business until recently.
[34:55] It's going to take some time for us
[34:57] to convince our customers that we are diligently
[35:01] investing, that we're going to be here for their future.
[35:05] The geographic location we have here,
[35:08] and the other competitive advantage we
[35:10] have here is massive.
[35:11] You can see that we can easily lose the advantage
[35:13] if we don't continue to invest.
[35:16] We reversing decades and trends of lax,
[35:20] and just assuming we're lax and the business will come to us,
[35:24] we can see from the chart that that has changed.
[35:26] Now we are changing our behavior to get ahead of it
[35:31] and be proactive, invest in the business
[35:34] and go out and attract the business
[35:34] and pull that business in here.
[35:34] We know it can be done.
[35:36] Other airports have done it to us over the last several years.
[35:38] We know the playbook.
[35:40] We just have to get after it.
[35:43] >> This is not so much related to cargo,
[35:50] but LAX's inability to get employment numbers up
[35:54] to pre-COVID periods.
[35:55] I'm listening to the cargo presentation,
[35:59] I looked at the charts relative to recovery
[36:02] from COVID as far as employment.
[36:08] I'm wondering, do you have any ideas or thoughts
[36:11] about why L.A. Compared to other airports is not rebounding?
[36:19] >> We hadn't planned on talking about it today.
[36:21] But I will propose-- and we have talked about it in the past,
[36:26] and it's a lengthy discussion.
[36:27] But I would recommend is that if we can come back
[36:29] with a specific air service presentation
[36:31] to give you a Fuller report.
[36:38] >> That's fine.
[36:40] >> I want to thank J.P. And your team for this it's a huge
[36:40] and important undertaking, bring it up to market standards all
[36:43] of these in the area and your short time with us,
[36:47] ten months at LAWA.
[36:51] Congratulations, thank you for the information.
[36:53] Let's keep it moving.
[36:53] Are there any other comments or questions?
[36:57] >> Just one comment.
[36:59] I also want to stress that we're working
[37:02] very hard to improve LAWA.
[37:06] Everything that we're doing in this space program
[37:08] can be done throughout the rest of the city.
[37:11] And I've already discussed with Mayor Bass and her staff
[37:13] how other parts of the city can do this.
[37:15] The mayor's already directing us to share this
[37:17] with other parts of the city.
[37:18] We've already started having those meetings.
[37:20] So our hope is that these things that we're learning here,
[37:23] that we're shifting the risk to the private sector
[37:25] can be pushed throughout the city
[37:27] and can benefit all of Los Angeles, and not just LAWA,
[37:33] the mayor is pushing that with their senior staff.
[37:35] >> Generating the revenue reminds me of the landing fees
[37:38] of Van Nuys and how we're investing,
[37:40] we've heard earlier in the morning during the reception
[37:42] by the environmental planning team how we're continuing
[37:44] to invest those dollars to improve passenger experience
[37:46] and experiences for our customers.
[37:53] >> Well said.
[37:53] We don't get any Los Angeles tax revenue.
[37:55] We put money in the general fund.
[37:56] We rely on the money.
[37:58] We can earn the money and we can borrow.
[37:59] And we have the opportunity to generate tens of millions
[38:03] of dollars of more revenue, that's more jobs, more
[38:16] Buildings we can build.
[38:17] More terminals we can.
[38:18] All that revenue we can use, we don't return money
[38:22] to shareholders.
[38:22] We don't pay dividends.
[38:24] Our dividends get back to-- we're
[38:29] going to do better at negotiating
[38:31] with some of our partners and rationalizing our costs.
[38:39] >> It's just good business, too.
[38:41] >> If there are no other comments or questions,
[38:43] the comment period for this and all presentations is now closed.
[38:46] Moving on to general public comments.
[38:50] Are there any speakers on non-agenda items?
[38:58] >> Yes, we do.
[39:00] >> General public comments must be related to Los Angeles world
[39:02] airports business.
[39:03] Please call the speakers.
[39:05] >> Thank you.
[39:06] Please line up at the windows in the order your name is called.
[39:12] Wait until your name is called again before proceeding.
[39:14] Thank you.
[39:17] Arun Ramakrishna, Sabirna Hernandez, Maria Ponce,
[39:30] Sonia Cerrone. --
[39:36] Sabrina Hernandez.
[39:42] Please line up at the windows in the order your name is called.
[39:48] Wait until your name is called again before proceeding.
[39:51] Please step forward, Arun.
[39:59] Speak directly into the microphone state your name
[40:02] and begin your comments.
[40:03] >> Hello members of the board my name is Arun Ramakrishna.
[40:06] I am a representative of Unite Here local 11.
[40:09] We want to alert the board to the use of temporary workers
[40:12] at airport lounges at LAX.
[40:14] We have seen instawork workers using multiple Sodexo operator
[40:18] lounges where Sodexo could have instead hired permanent airport
[40:21] employees.
[40:22] We have serious concerns about how
[40:23] these workers are being paid.
[40:28] Recently installed work workers at the Qantas Lounge
[40:30] were paid as little as $24.75 without employers
[40:33] provided health insurance or a health care stipend of any kind.
[40:37] We have seen in-store job postings for Seresto--
[40:46] advertising wages as low as $18 per hour
[40:47] or below the lax living wage.
[40:49] Is the workers also faced lawsuits
[40:50] in California and other contexts alleging
[40:52] that workers were misclassified as independent contractors.
[40:55] We are equally concerned about airport access.
[40:57] We understand that airlines can provide temporary or day pass
[41:01] access that allows workers into secure areas
[41:03] without completing their normal permanent processes.
[41:07] We are concerned that this process
[41:09] may be overused to maintain a revolving temporary workforce
[41:12] rather than hiring permanent employees who
[41:14] complete the normal background check and badging requirements.
[41:16] We're asking the board to investigate both issues.
[41:19] Our temporary workers at LAX being
[41:21] paid the wages required by law?
[41:23] And our temporary access procedures
[41:25] being used appropriately?
[41:27] We've seen these practices in the Sodexo and other Sodexo
[41:30] lounges.
[41:32] We believe LAWA should act before using
[41:37] Instawork or other temporary staffing platforms.
[41:42] >> Thank you.
[41:44] Sabrina Hernandez.
[41:56] >> You can come back.
[41:58] >> Maria Ponce.
[42:01] >>
[42:04] [Speaking Spanish]
[43:32] [Applause]
[43:34] >> Sonia Cerron.
[43:44] >>
[43:45] [Speaking Spanish]
[45:19] >> Thank you.
[45:20] Before I call Sabrina, will the next set of speakers please
[45:30] line up at the window in the order their name is called.
[45:32] Wait till your name is called again before proceeding.
[45:35] That would be Lesley Meza, Jeremy Lazy, Ed Murza--
[45:56] Sabrina Hernandez, please step up to the lectern.
[45:59] >> Hello, members of LAWA.
[46:02] My name is Sabrina and I work at Qantas Lounge at LAX.
[46:04] I am a member of the union here local 11.
[46:13] I'm here because Sodexo is not paying us accordingly
[46:15] with the lax living wage or overtime.
[46:17] Vacation hours and holidays.
[46:19] Many of us do not receive health care through Sodexo
[46:22] because of company's health plan is too expensive.
[46:26] As workers we did not receive qualifying health,
[46:33] we are entitled to full cash wage
[46:37] with currently 3265 per hour.
[46:44] Sodexo is using the full 32.65 rate
[46:48] when calculated our overtime, holidays or vacation pay.
[46:53] Instead the company is calculating and paying
[46:59] these hours using a lower range wait.
[47:01] This means workers like me are being shortchanged.
[47:06] When we work overtime and when we use
[47:09] benefits that we have earned.
[47:11] For me, it's missing money matters.
[47:16] I've worked at the airport for a while,
[47:18] being paid legal wages I am owed will help to take
[47:21] care of my family and expenses.
[47:22] Thank you.
[47:30] [Applause]
[47:32] >> Thank you.
[47:33] Next, we have Leslie Meza.
[47:38] >> Good morning my name is Leslie Meza.
[47:40] I represent workers at Flying Food Group
[47:42] through the union at local 11.
[47:44] This is our 52nd time speaking to you all regarding bland
[47:46] foods.
[47:47] As many of you all know, August 5th we filed another OSHA
[47:50] complaint against this company.
[47:52] Alleged unsafe conditions that include a moldy, infested dishes
[47:57] that Sonia spoke of without the appropriate protective
[48:01] equipment.
[48:02] As well as excessive restroom Supplies-- on August 7th,
[48:13] inspection from Cal OSHA informed us that he was going
[48:15] to conduct an inspection.
[48:16] So that day I could observe as it is right under the law --
[48:24] the company refused consent for the inspector
[48:26] to access the facility to inspect the conditions.
[48:28] Let me say that again.
[48:30] After workers filed a complaint, Bland Foods
[48:33] refused an inspector from Cal OSHA
[48:35] to access and conduct an inspection at the facility.
[48:39] It only allowed an inspector in four days later.
[48:42] Why would flying food group do that?
[48:44] What are they trying to hide?
[48:46] We have never heard of a company in the industry
[48:48] refusing a government agency access to inspection.
[48:51] This is the kind of thing we know
[48:53] happens in developing countries like Honduras or Haiti.
[48:55] We have never seen the inspector turn away
[48:57] at a company in La, much less with the license from the city.
[49:01] Maybe flying food group thinks they can ignore the law, just
[49:05] like it has ignored workers demand
[49:06] for safe and decent conditions.
[49:08] Enough is enough, and LAWA must say enough
[49:15] is enough to flying food group.
[49:23] For the, workers delegated to GM yesterday and HR
[49:26] today because there's no ventilation in the kitchen.
[49:30] >> Good morning.
[49:33] My name is Jeremy Blasi.
[49:35] General counsel for Unite at Local 11.
[49:36] You might recognize my name for the many letters
[49:38] that we have sent to this board regarding flying food group.
[49:40] Under Laura's rules, the burden is
[49:43] on flying food group to demonstrate the trustworthiness,
[49:47] and capacity to operate at LAX.
[49:50] In this license period, flying food group has been cited
[49:54] or found violation by five different government agencies.
[49:58] The Bureau of Contract Administration
[50:00] has found six violations of the airport's minimum wage
[50:04] at this company or its on site subcontractors
[50:07] with more violations just uncovered.
[50:09] Cal OSHA has found 12 citations against the company.
[50:17] Just to briefly mention some of those.
[50:23] In May of this year, Cal OSHA issued six citations
[50:25] against Flying Food Group.
[50:26] Four of them it deemed serious and several
[50:29] of those related to the inability of workers
[50:31] to open refrigerated rooms from the inside.
[50:35] They could be locked from the outside.
[50:38] This is an issue that was cited for previously.
[50:41] It didn't correct it, and led to a near tragedy in January.
[50:45] One last thing, there are workers here
[50:49] that aren't concerned about their jobs,
[50:51] that concern is legitimate.
[50:53] Should make the worker retention law work.
[50:59] It should tell them any caterers who
[51:01] will pick up flying food groups work
[51:04] and that they should do so soon so that the airlines have
[51:07] an opportunity for a smooth transition.
[51:17] >> Dandy Palganatan?
[51:20] How many variations of your name have you heard?
[51:22] >> It's been three years.
[51:24] And they just know me as Dandy.
[51:32] Good morning.
[51:36] Senior vice president strategic initiatives.
[51:37] I'm speaking here regarding a very urgent matter,
[51:41] and that is depending whose procurement of the Woodley
[51:44] property at Van Nuys Airport which currently is home
[51:48] to 300 of our employees.
[51:50] To be clear, a word has not yet been presented
[51:54] to the board for action.
[51:55] That is precisely why we're here today.
[51:57] The consequences of this procurement
[51:58] have not yet been publicly discussed.
[52:00] We believe it is important for the board
[52:03] to understand what is at stake before any final decision is
[52:07] presented.
[52:08] Simply put, this is not a simple lease transaction.
[52:13] The decision here could have serious consequences
[52:17] to employees.
[52:18] Airport operations, surrounding community.
[52:21] Thank you for your time.
[52:34] >> Thank you.
[52:35] Before I call the next speaker, with the next set of speakers
[52:37] please line up at the windows in the order your name is called .
[52:47] Doug Wilson, Hector Torres, and Luis Oviero. --
[53:04] forgive me if I mispronounce your name.
[53:12] >> Good morning.
[53:12] My name is Edgar.
[53:13] I'm the chief business officer.
[53:15] Clay Lacy has operated the brand new airport for 57 years.
[53:18] It is the airport's largest employer currently.
[53:20] The potential award of the Woodley property
[53:23] threatens to displace more than 300 good paying jobs
[53:27] and local jobs and a major FAA approved aircraft maintenance
[53:32] operation.
[53:33] No public transition, alternate facility,
[53:40] retention requirements, or reemployment assistance
[53:42] has been discussed or identified.
[53:45] The consequences would extend beyond this company.
[53:50] Hundreds of families and critical aviation services
[53:52] and the local economy would be affected.
[53:56] We respectfully ask the board to give these human impacts
[54:02] a very careful consideration before an irreversible decision
[54:04] is made here thank you.
[54:16] >> Doug Wilson.
[54:21] >> Good morning my name is Doug Wilson.
[54:23] I'm the head of Fbos for Clay Lacy aviation.
[54:24] My colleagues have described what is at stake.
[54:26] I'd like to address why we believe
[54:29] basic fairness and greater transparency is needed.
[54:32] The draft lease and Environmental information
[54:35] released was released after the deadline for proposed questions.
[54:44] Four months into the RFP process,
[54:46] only three days before proposals were due,
[54:53] LAWA prohibited commercial operations at the leasehold.
[54:57] That Part of few operators like Clay Lacy aviation
[54:59] to make substantial last minute changes while not similarly
[55:02] affecting FBO proposals with whom LAWA it's now negotiating.
[55:12] When LAWA announced his intent to award the property
[55:14] we immediately requested access to the proposal scoring,
[55:16] and evaluation.
[55:18] LAWA strangely retracted the award
[55:20] without a clear explanation while continuing to negotiate
[55:22] exclusively with one proposer.
[55:24] Thank you.
[55:33] >> Doc Cutchel.
[55:36] >> Good morning.
[55:37] My name is Scott.
[55:37] I'm president of real estate with Clay Lacy.
[55:39] You've now heard the consequences and concerns
[55:42] regarding this procurement.
[55:43] I would like to close with a simple request.
[55:47] Please pause any award or lease execution
[55:51] until three things occur.
[55:54] First, have release the complete proposals, evaluation materials
[56:01] and relevant correspondence.
[56:03] Second, allow sufficient time for meaningful public review
[56:09] and consideration of these materials.
[56:11] And third, require a credible plan
[56:15] addressing the more than 300 employees whose
[56:18] jobs are at risk along with the specialized maintenance
[56:21] capabilities that we provide at the airport that will be lost.
[56:26] This is not a request for special treatment.
[56:32] It is a request for transparency, responsible
[56:37] airport stewardship, proper consideration
[56:38] of good jobs, proven operational experience, and a long term 57
[56:43] year community partnership.
[56:45] Please pause this process, release the documents
[56:49] and allow public review.
[56:50] Thank you.
[57:02] >> Héctor Torres.
[57:05] >> Good morning, members.
[57:10] My name is Hector Torres.
[57:12] I've been employed by Clay Lacy.
[57:13] I've been with the company over ten years.
[57:20] It's been a good place to work at.
[57:21] I've been at Van Nuys Airport most of my career.
[57:24] I believe due to a RFP process, the lack
[57:27] of transparency and fairness of more than 300 good paying jobs
[57:31] are at imminent risk.
[57:33] But no transition plan in place for the affected employees
[57:36] and their families.
[57:37] The ongoing Los Angeles-- threatens
[57:45] to displace Clay Lacy's aviation, airports largest
[57:47] employer and 57 incumbent, and eliminate Van Nuys more
[57:55] significant FAA approved aircraft maintenance operations,
[57:57] where over 1500 aircraft currently
[58:01] receive maintenance services.
[58:02] I'm here today because more than 300 local jobs like mine at Van
[58:06] Nuys Airport are at risk.
[58:08] I respectfully urge the board to pause any final awards,
[58:17] and please disclose the scoring process and documents
[58:19] and prioritize the protection of over 300 local jobs.
[58:21] Thank you for your time.
[58:29] >> Before I call the next speaker,
[58:31] will the next set of speakers please line up at the windows
[58:33] in the order your name is called?
[58:44] [Reading names] Luis Oviedo.
[59:01] >> Good morning, commissioners.
[59:05] My name is Luis Oviedo.
[59:06] 37 years old, and I live in the East Hollywood
[59:06] area of Los Angeles with my wife and two children.
[59:08] I've been in the aviation industry for about 14 years now
[59:11] and I've been with Glaze Aviation as five years
[59:16] as a maintenance planner for our maintenance department.
[59:19] During this time, I have continued
[59:21] to grow professionally, take new responsibilities in advance
[59:24] in my career.
[59:25] I take pride in the work we do.
[59:27] I look forward to continuing my career with Clay Lacy aviation.
[59:33] Last year clay Lacy awarded me with a scholarship
[59:37] to continue my education.
[59:38] This opportunity has allowed me to pursue my goals
[59:39] and invest in my future.
[59:41] This reflects the company's commitment to supporting its
[59:45] employees .
[59:48] I'm here today because more than 300 jobs including mine
[59:53] at Van Nuys Airport is at risk.
[59:54] These jobs represent families and members of our community
[59:57] who depend on them.
[59:58] I respectfully ask the board to pause any final decisions
[1:00:02] and carefully consider the impact that this action could
[1:00:05] have on more than 300 employees, and families
[1:00:08] who might be affected.
[1:00:09] Thank you for your time.
[1:00:19] >> Thank you.
[1:00:22] Bills.
[1:00:28] >> Good morning.
[1:00:29] My name is Steve.
[1:00:30] I'm a business representative with Iodbc local 18.
[1:00:31] Here on behalf of the highly skilled workers
[1:00:33] testing the APM system at.
[1:00:34] We have come before this body in multiple occasions
[1:00:36] to sound the alarm about Lynx and Alstom's violation
[1:00:40] of the LA, which have denied our workers the community,
[1:00:43] and we say middle class?
[1:00:46] Sustaining wages in high quality health care
[1:00:49] guaranteed by that agreement.
[1:00:51] Your contract with Lynx requires compliance with the LA.
[1:00:54] An obligation that has been completely ignored
[1:00:58] by Austin and Lynx.
[1:00:59] It is not just the Union saying this.
[1:01:01] The LA arbitrator over six months ago
[1:01:04] ordered them to pay up.
[1:01:08] Not only are they refusing comply,
[1:01:15] but they both sued the union to invalidate
[1:01:17] the results of the bargain for arbitration process.
[1:01:19] This mistreatment of workers is endangering the completion
[1:01:22] of this project, workers with years
[1:01:23] of experience on this train are leaving
[1:01:25] for better paying benefits.
[1:01:26] That project expertise is gone and it's not coming back.
[1:01:30] It's only going to get worse.
[1:01:33] Not to mention that when your guests are actually
[1:01:35] riding the train as Lynx and Alstom
[1:01:40] continue to shortchange the workers.
[1:01:46] Does LAWA intend to by and do while Lynx
[1:01:49] ignore these protections?
[1:01:50] If you aren't going to make Lynx pay,
[1:01:52] the city needs to pay these workers what they're owed.
[1:01:55] Thank you again.
[1:02:01] Steve Bills.
[1:02:04] >> Hi, it is an honor to be before of you today.
[1:02:10] I am so enlivened to be participating in this city's
[1:02:16] political process recently having been at a Los Angeles
[1:02:20] Department of Water and Power Board meeting which was my first
[1:02:25] and making incredible connections.
[1:02:28] And I think an impression and an effort
[1:02:35] mobilize Los Angeles to have a foundation, a strong cornerstone
[1:02:39] of a new era.
[1:02:43] I believe it was girls build you guys had a program with,
[1:02:53] and I really see the youth as a massive point of development.
[1:02:56] One thing that is super exciting,
[1:02:59] I have been connecting with Aqmd and really
[1:03:02] want to try to connect with you guys
[1:03:04] in this community over an active air pollution mitigation
[1:03:18] initiative, which I believe AQMD will most likely want
[1:03:24] to hear more about.
[1:03:26] And another one is a program that I'm
[1:03:26] proposing called Space Port Los Angeles, which
[1:03:28] can mobilize downtown LA and LAX in transportation
[1:03:32] expansion of logistics and industry in general.
[1:03:37] God bless you guys.
[1:03:38] Thank you.
[1:03:47] >> Esperanza Maciel.
[1:03:55] >>
[1:03:55] [Speaking Spanish]
[1:05:39] >> Kenya Nazario.
[1:05:46] >>
[1:05:47] [Speaking Spanish]
[1:07:17] >> Susan Gutierrez.
[1:07:24] >> My name is Suzanne Gutierrez.
[1:07:25] I'm a co-founder of Food Fighters United,
[1:07:25] and I've lived in the pocket right next to the Van Nuys
[1:07:27] airport for 23 years.
[1:07:28] In March 2026 PM Fighters United requested
[1:07:32] to be placed on the May agenda the date came with no response.
[1:07:43] Then in June after the meeting had already passed,
[1:07:45] Van Nuys manager Jacob Hague emailed us to say no.
[1:07:47] It's the board aware of this?
[1:07:49] The community has to present a mitigation wall that
[1:07:51] are significantly proven to reduce toxic fumes and ear
[1:07:54] piercing noise impacting our neighborhood,
[1:07:56] and this wall would be fully funded by the airport's tenants
[1:07:59] in exchange for a standard short term lease
[1:08:01] to amortize the expense contrary to Mr.
[1:08:04] Ackerman and Hanks, false and defamatory accusations
[1:08:06] of the tenant attempting to extend,
[1:08:08] it's the community that approached the tenant
[1:08:10] and begged for this critically needed mitigation.
[1:08:12] Instead, is pushing forward with an unvetted incomplete land
[1:08:17] swap, now rebranded as rezoning.
[1:08:20] This plan will not solve the problem.
[1:08:23] A reality that Rainbow Young from Aqmd
[1:08:26] confirmed to the Daily News, and rezoning
[1:08:28] will make it worse by increasing adverse impact on my community
[1:08:32] by moving even more transient jets directly
[1:08:34] across from our neighborhood.
[1:08:36] This is the exact opposite that Lawa falsely
[1:08:39] claims in pretending to reduce jet lag on the west side.
[1:08:43] Thank you.
[1:08:46] >> Madam chair, concludes our speakers for general comment.
[1:08:57] >> The general comment period is now closed.
[1:08:59] Are there any neighborhood council speakers today?
[1:09:07] >> No.
[1:09:08] >> Thank you.
[1:09:09] The comment period for Neighborhood Council
[1:09:11] is now closed.
[1:09:11] Moving to the approval of minutes.
[1:09:11] Could I have a motion to approve the minutes for July 9th,
[1:09:14] 2026 special meeting?
[1:09:16] >> I'll make a motion.
[1:09:23] >> Thank you, Commissioner Labeau.
[1:09:28] Commissioner Roxboro second.
[1:09:30] All those in favor please say aye.
[1:09:35] Any opposed?
[1:09:39] The ayes have it.
[1:09:42] Next on our business our consent items.
[1:09:49] Commissioners, staff requests that's
[1:09:52] the item number four regarding the lease with aircraft service
[1:09:52] International be pulled off the agenda.
[1:09:54] And please be reminded that if there
[1:09:55] are any speakers on any consent item,
[1:09:57] that item will be pulled from the consent list
[1:09:59] so that we can hear from the speakers.
[1:10:02] Are there any speakers on any of the consent items?
[1:10:05] >> Yes, item 19, and for item 38.
[1:10:14] >> Only 19.
[1:10:17] Thank you.
[1:10:19] Does any commissioner want to pull an item for discussion?
[1:10:29] With that, we have items 1 through 3, and items 5
[1:10:41] through 18, items 20 through 33.
[1:10:48] Could I have a motion to approve those consent items?
[1:10:51] >> So moved.
[1:10:56] >> Second.
[1:10:58] >> Thank you.
[1:10:59] All those in favor, please say aye.
[1:11:02] Those opposed, say no.
[1:11:04] The ayes have it.
[1:11:06] The consent items are approved.
[1:11:10] We will now go to item number 19.
[1:11:22] >> Suzanne Gutierrez.
[1:11:25] >> We will ask the presentation to take place with --
[1:11:32] >> This was pulled because there is a speaker.
[1:11:40] >> Yes, for item number 19.
[1:11:43] >> Hello.
[1:11:44] My name is Suzanne Gutierrez I'm co-founder
[1:11:47] of Young Fighters, a community advocacy group helping others
[1:11:47] with the noise and air pollution from the Van Nuys airport.
[1:11:50] Is item number 19 should have been pulled from the agenda.
[1:11:53] It is grossly irresponsible for this board
[1:11:55] to approve transfer without a report identifying what's
[1:12:00] better than years long environmental complaints
[1:12:02] associated with the lease.
[1:12:03] Those complaints come from adjacent businesses residents
[1:12:06] and even the FAA air traffic control tower personnel.
[1:12:09] And yet there's no mention of these consideration
[1:12:13] in Laura's report.
[1:12:14] Before approving Castle and Crux right to transfer the lease,
[1:12:18] this board to first identify what mitigation measures
[1:12:20] can be included in the deal.
[1:12:22] Is receiving a one time transfer with $600,000,
[1:12:27] to been provided to this board to identify how that money can
[1:12:32] be improved the property and mitigate its harm.
[1:12:34] Where is the report that identifies that Castle met all
[1:12:39] of its investment obligations?
[1:12:41] If you look back at Castle and Cook's original proposal
[1:12:43] in 2009, the mitigation barrier they
[1:12:45] proposed for the northern portion implemented.
[1:12:47] Where is the analysis of how this transfer impacts Fairfield?
[1:12:50] How this competition pricing at the airport considering this
[1:12:53] will give signature over 62% of the real estate of Van Nuys?
[1:12:57] I'm requesting that this board table this item, competition
[1:13:03] and determine what public benefit and operation
[1:13:06] protections should accompany this transfer.
[1:13:11] Thank you.
[1:13:17] >> Thank you.
[1:13:17] Are there any other speakers on this item?
[1:13:22] >> No.
[1:13:22] >> The comment period for this item is now closed.
[1:13:22] Any questions or comments from the board
[1:13:24] on this particular item?
[1:13:30] If there are no further questions or comments.
[1:13:31] Can I have a motion to approve item 19?
[1:13:39] >> Moved.
[1:13:40] >> Second.
[1:13:48] >> Second.
[1:13:50] >> Thank you, Commissioner Lebow has moved and Commissioner
[1:13:52] Roxborough has seconded all those in favor, please say aye.
[1:14:04] [Members voting] The ayes have it.
[1:14:07] Item 19 is approved.
[1:14:10] And now, we will move on to the regular agenda.
[1:14:16] Regular items.
[1:14:21] Item number 34.
[1:14:21] We will ask Mr. Christensen to step forward.
[1:14:23] >> Good morning Vice President Aramayo.
[1:14:31] I'm mike Christensen, chief airport development officer.
[1:14:34] I'm before you this morning requesting an appropriation
[1:14:36] of $300 million to fund the continuation of the design
[1:14:38] and construction of the terminal five project between now
[1:14:41] and issuance of a former guaranteed maximum price.
[1:14:45] We would like to start this presentation
[1:14:51] by providing an update on the project and some context
[1:14:54] for this request, starting with the rundown by Assistant General
[1:14:58] Manager Courtney Moore.
[1:14:59] Who is also the project manager and the principal source
[1:15:02] of Project Energy, as you will see.
[1:15:11] >> Thank you, Mike.
[1:15:12] This is the first time co-presenting on the new podium.
[1:15:13] We'll do a bit of a dance.
[1:15:13] Good morning, vice President Aramayo, Commissioner.
[1:15:14] John shared that we would be giving you a bit of an update
[1:15:16] on terminal five and we're very pleased to do so.
[1:15:19] We have been design and have had meetings daily to bring you
[1:15:23] what we're about to show you.
[1:15:24] Before we get into some of the renderings, which
[1:15:27] I know is someone's favorite part,
[1:15:28] this slide acts as a bit of an orientation for us in the work
[1:15:32] that we're doing.
[1:15:33] One of the last times that you saw it,
[1:15:36] you saw that in 2024, our overall experience rating
[1:15:41] was 3.59 from an Airports Council
[1:15:44] international perspective.
[1:15:45] Which put us last against our benchmark peers.
[1:15:48] Since then we have enacted many different initiatives.
[1:15:50] We have brought up the transformation office
[1:15:53] and showing you some of our custodial optimizations
[1:15:56] elevating our cleanliness scores faster
[1:15:57] than any of those benchmark airports.
[1:16:00] We have installed many new different technological
[1:16:02] solutions to enhance passenger processing
[1:16:05] so our international arrival and wait times
[1:16:08] decreased for about 35%.
[1:16:11] We've had a lot of new comfortable seating
[1:16:13] and new power to that city, enhancing our amenities
[1:16:15] and comfort.
[1:16:16] If you look at a lot of the quotes that
[1:16:18] are on the screen from our passengers and our Skytrax
[1:16:21] audits, you will see that to continue
[1:16:24] to move the needle much of the work
[1:16:25] rests within the capital projects.
[1:16:27] Having ambiance that is still highly variable
[1:16:30] and having a data esthetic and an esthetic
[1:16:32] that does not reflect Los Angeles.
[1:16:34] Shortly after, we shared with you
[1:16:39] the different consumer studies that
[1:16:41] understands what passengers are anticipating
[1:16:43] when they come to Los Angeles.
[1:16:44] What are those perceptions that they have of the city
[1:16:47] and how do they best tell their story.
[1:16:49] The city of thousands of stories we also
[1:16:51] share that there were too many categories of passenger
[1:16:54] perceptions for us to be able to tell just one
[1:16:57] story in our airport.
[1:16:59] You would reflect those different themes
[1:17:01] that our passengers shared.
[1:17:03] They were expecting to see when they visited the city.
[1:17:06] To do that, we have different levels of capital investment.
[1:17:09] On the slide that you'll see in front of you,
[1:17:12] we've started the work with our central terminal Area Arrivals
[1:17:16] project, introducing some color, a fresh new esthetic, new
[1:17:20] lighting around the campus, enhancing our wayfinding
[1:17:23] and making it easier for passengers
[1:17:24] to find their way to and from the connecting destinations.
[1:17:32] A couple of board meetings ago, you saw the enhancements
[1:17:35] that we were bringing to Tom Bradley International.
[1:17:35] That's Pre-security and reflecting
[1:17:35] the Hollywood esthetic and the terminal four
[1:17:38] had been in construction and we added some additional elements
[1:17:41] and sense of place as we were going
[1:17:43] through that project with our American Airlines partners.
[1:17:46] You've seen some of the terminals
[1:17:48] have not proposed enhancements.
[1:17:50] Terminal five produces a unique opportunity
[1:17:52] because it is a complete reconstruction.
[1:17:54] A complete reconstruction we shared with you
[1:17:58] really reflects the vibrancy and the energy
[1:18:00] of downtown Los Angeles.
[1:18:02] It's an opportunity for us to celebrate
[1:18:04] the urbanism the skyline and all of the vibrancy and the fun
[1:18:09] that is the city.
[1:18:10] Before we show you the rendering it's
[1:18:12] always nice to remind you where terminal five came from.
[1:18:15] Terminal five that is time 40 years ago
[1:18:18] was one of the flagship terminals that LAX had.
[1:18:20] Used to have some palm trees in their.
[1:18:23] It was branded as one of the locations of sense of place,
[1:18:26] but that was many years ago, and it has
[1:18:29] followed that data esthetic.
[1:18:30] When we have reintroduced terminal five,
[1:18:35] you will see a terminal that is the first on the west coast that
[1:18:38] is built with Skytrax five star criteria.
[1:18:40] There are only two other terminals
[1:18:42] that get to hold that designation
[1:18:44] in the country at the moment.
[1:18:45] You will have a terminal that introduces larger widebody
[1:18:49] capabilities you'll have a much more efficient terminal
[1:18:52] from its baggage handling system and its functionality you'll
[1:18:55] have modernized security lanes, yes for efficiency and security
[1:19:00] but also for the satisfaction of the officers that
[1:19:02] are working there.
[1:19:03] You'll have a terminal that has fully maximized and optimized
[1:19:05] around commercial opportunities for our business partners.
[1:19:17] You'll also have levels of service and a building
[1:19:19] that's been sized completely around circulation
[1:19:19] and how many square feet we should allocate per passenger
[1:19:19] based on their activity you'll have new levels of amenity
[1:19:22] and comfort and we wouldn't be Los Angeles
[1:19:24] if we weren't saying that you'll have new entertainment
[1:19:26] offerings.
[1:19:27] When you walk into terminal five,
[1:19:38] you'll see vaulted ceilings in a way
[1:19:40] that you'll only see in Tom Bradley.
[1:19:40] But in a way that's new to our domestic terminals.
[1:19:40] You'll be greeted by the skyline of downtown Los Angeles,
[1:19:41] of course with the mountain range in the background.
[1:19:43] When you come through security, you
[1:19:45] will see the Griffith Park Observatory reflected right here
[1:19:48] in our own Los Angeles International Airport.
[1:19:50] Complete with new shows every 15 minutes
[1:19:52] to immerse you in the city, but also
[1:19:54] for all of our business partners that are in the terminal
[1:19:57] to keep our passengers seated, wanting to eat or maybe
[1:20:00] drink a little and looking down at the shopping opportunities.
[1:20:03] All lines of sight have been maximized
[1:20:05] in this terminal for greatest commercial performance.
[1:20:07] You will come downstairs and you'll
[1:20:10] be greeted by P22, mountain lion that we pay respects to as well
[1:20:15] as with Griffith Park.
[1:20:17] Will be unveiling around the same time.
[1:20:19] And as you continue down the concourse,
[1:20:26] you'll get to enjoy Grand Central Market
[1:20:29] just like you would if you were walking down
[1:20:30] downtown Los Angeles.
[1:20:30] When you get to the end of the concourse,
[1:20:30] you're going to see a first in its kind it's a vanishing edge.
[1:20:33] Where you can see through that window
[1:20:35] right there it's nothing here you don't see jet bridges,
[1:20:38] you don't see equipment.
[1:20:39] It's positioned so you have this overlook into the runway
[1:20:42] and you see aircrafts moving.
[1:20:44] You'll get a bit of the arts district from a brewery,
[1:20:47] then you'll take the stairs up and we will not
[1:20:50] be reflecting downtown Los Angeles
[1:20:51] if we didn't do so with our own rooftop lounge,
[1:20:55] complete with entertainment offerings.
[1:20:57] And we're excited that we've been working on this design,
[1:21:01] we want to ensure that this is the right thing for LAWA
[1:21:07] from a business perspective as well, which
[1:21:11] is why we're going to invite Mike back up
[1:21:13] to share a little bit of the construction of where
[1:21:15] we are with this business deal.
[1:21:18] >> Thank you, Courtney.
[1:21:23] The project is being delivered faster than any project
[1:21:26] we have ever delivered of this type and this size,
[1:21:28] and in order to change-- we've talked about the fundamentally
[1:21:35] different Kind of terminal we're delivering,
[1:21:39] we're needing to deliver this differently.
[1:21:42] We have two active construction locations
[1:21:44] that it takes to deliver this project.
[1:21:46] The first is the terminal five site,
[1:21:49] the second is we love creating acronyms.
[1:21:51] We have an acronym we call OCR, and that's offsite construction
[1:22:03] and relocation.
[1:22:03] Those are two sites that are leaving this project.
[1:22:03] This is a view of we have these on camera
[1:22:04] and we will have some really phenomenal time lapses.
[1:22:06] We're going to be able to show you
[1:22:07] in a few years the head house site
[1:22:11] and the actual terminal five site.
[1:22:13] There's a lot of concrete going in right now
[1:22:16] and the steel is going up for the head house as we speak.
[1:22:18] Miles of utilities are being installed
[1:22:20] for every type of utility.
[1:22:21] Chilled and heated water, fire water,
[1:22:25] potable water and lots of it and electrical infrastructure
[1:22:29] going in.
[1:22:29] If you look at the bottom right, the historic tunnel
[1:22:33] is preserved.
[1:22:33] That will be part of the new terminal as well.
[1:22:36] >> We're just replacing utilities?
[1:22:44] T5 had utilities prior.
[1:22:45] These just were more modernized pieces of infrastructure?
[1:22:48] >> Newer and right sized.
[1:22:54] And modern configurations, there were
[1:22:56] a lot of utilities in there-- this
[1:22:59] was basically 70 year old utility structure
[1:23:02] that was there to begin with.
[1:23:04] Replacing it with more modern, along with being right sized.
[1:23:04] And a whole lot of it that was not
[1:23:05] there in the original stuff that was hung on the walls.
[1:23:07] It's not going to be properly covered in conduit.
[1:23:14] The first segment of the concourse
[1:23:17] that Courtney showed you that had the observatory, if you look
[1:23:20] on the right, you'll see the observatory framed out
[1:23:28] in the first OCR yard.
[1:23:37] And if anyone would like to see this,
[1:23:39] take a cruise down Westchester Parkway.
[1:23:39] We've topped out the steel on the first segment.
[1:23:39] We're doing things like pouring the concrete on some
[1:23:41] of the floors right now.
[1:23:44] And we're also starting the second and third segments
[1:23:48] as we speak.
[1:23:50] Progressive design build is a process that we're
[1:23:54] using to deliver this, and we anticipate
[1:23:57] and we are right now reaching 100% design level
[1:24:01] on our progressive design process.
[1:24:04] Guaranteed maximum pricing is anticipated
[1:24:07] to come in front of you around the end of the year.
[1:24:10] At that time, will have a lot more information
[1:24:13] to give you on what the end of this project looks like.
[1:24:16] Right now, prior to this action, we
[1:24:19] have appropriated funding on this project of 1.56 billion.
[1:24:24] The 300 million we're requesting right now
[1:24:27] would take us to 1.95 billion.
[1:24:29] This is designed to give us enough cash
[1:24:32] to run this project at current rate,
[1:24:35] and in some cases accelerating for the schedule.
[1:24:38] It will get us past the end of the year, by which time
[1:24:48] we will have the GOP in front of you for consideration.
[1:24:50] The contractor is achieving its inclusivity requirements
[1:24:54] in most categories, as you can see here.
[1:24:57] I think we are most glad to report
[1:24:59] in the middle of this table, that
[1:25:07] in excess of 40% of the workers on this project are local.
[1:25:09] This is a very cool project.
[1:25:11] It's being built for Angelenos, being built by Angelenos.
[1:25:13] We're very proud of that.
[1:25:15] We will continue to work with the contractor on the higher
[1:25:17] lacks.
[1:25:18] We need to bring that up.
[1:25:20] And also increase their placement of the sponsorships
[1:25:24] going forward.
[1:25:28] We are glad to take any questions that you
[1:25:32] would like for the both of us.
[1:25:36] >> Didn't mean to interrupt.
[1:25:45] >> I was going to ask if there are any speakers on this item.
[1:25:53] >> No.
[1:25:54] >> Commissioner questions or comments.
[1:25:55] >> Have a couple of questions.
[1:25:57] Regarding the SB LV and small Businesses
[1:25:59] enterprises, really great percentages and good goals.
[1:25:59] How are we going to make sure and monitor
[1:26:03] that there is actual participation by all
[1:26:05] of the small businesses?
[1:26:07] >> We work very closely with our responsibility unit that's now
[1:26:16] transferred over to Mike Frank.
[1:26:17] And do it on a monthly basis.
[1:26:18] And as a reminder, these are contractor requirements.
[1:26:23] If they do not meet these requirements,
[1:26:25] there are monetary fines.
[1:26:26] We will be sure that they do.
[1:26:34] They are heavily incentivized.
[1:26:37] >> We have a process in place so that if they're not actually
[1:26:41] being part of the contract, that we can hear from the small
[1:26:48] businesses?
[1:26:50] >> Yes, we do.
[1:26:51] Both were we develop groups and we meet regularly with these,
[1:26:54] and we have regular outreach with the contractors
[1:26:57] large and small.
[1:26:58] We also work on the purchasing side and get that feedback loop.
[1:27:07] Rest assured that we get calls quite often.
[1:27:12] We have a very open-- if we have partners
[1:27:16] that feel like they're not being given a fair shot on this.
[1:27:19] >> That's great.
[1:27:24] Going back to the beginning of your presentation,
[1:27:27] the ultimate GMP of 1.95 billion.
[1:27:28] What's the biggest remaining cost risk beyond that?
[1:27:32] The GMP will not be 1.9.
[1:27:34] If you approve this, will take appropriations to 1.95 billion.
[1:27:37] We're not going to know that number until December.
[1:27:40] >> That is correct.
[1:27:42] We're now in the final design which has to be converted
[1:27:45] and GMP and progressive design build is a negotiated process.
[1:27:48] And when we get out on the end of that,
[1:27:51] we have a number and that number has schedule implications
[1:27:54] and we'll bring all of that to you at that time.
[1:27:58] So Commissioner Velasco, with that explanation--
[1:28:14] >> That answers my question.
[1:28:15] >> You reference the fact that this is the fastest construction
[1:28:20] project that LAWA has ever done.
[1:28:25] >> On a terminal of anything close to this scope.
[1:28:27] >> Given that, are there certain things to watch out
[1:28:31] for as we're going through this?
[1:28:33] Is there anything that keeps you up
[1:28:33] at night given that we are on this fast track schedule?
[1:28:33] What are those?
[1:28:33] >> If you ask that question a year ago,
[1:28:43] I would have given you a long list.
[1:28:48] The list is shorter.
[1:28:50] Top of the list a year ago was procurement long lead items
[1:28:52] and things that we find in the ground.
[1:28:52] I'm happy to report that pretty much all of the long lead
[1:28:53] time items have been procured.
[1:28:55] We're out of the ground, so we've dealt with most
[1:28:58] of the things that were done they're.
[1:29:00] There's always a risk issue on whether
[1:29:02] and we're hearing a lot of things about potential
[1:29:04] whether this season again.
[1:29:05] We're up out of the ground that limited,
[1:29:07] but we continue to watch that closely.
[1:29:09] And if we see that closing in on us,
[1:29:11] we'll put measures to minimize any impact
[1:29:15] that that might incur.
[1:29:22] We continue to monitor supply chains that's always an issue.
[1:29:24] There's a lot of pressure on supply chain and steel
[1:29:24] right now.
[1:29:25] Mechanical and electrical equipment.
[1:29:26] Luckily, we got in under the wire
[1:29:29] to get in those procurement lines.
[1:29:30] We've had a few issues with steel that we're dealing with
[1:29:33] and we've been able to resequence or even pull steel
[1:29:36] off of some other projects.
[1:29:38] And at this point, that's the high risk that it's making sure
[1:29:44] the procurement cycles work as they have been designed.
[1:29:48] >> I'm sure there are contingency plans in place
[1:29:56] if there are weather issues or supply chain issues to keep us
[1:29:59] on track?
[1:30:04] >> To a certain extent, yes, depending on what the nature
[1:30:07] of the problem is.
[1:30:08] >> One thing I would add is, we're moving faster than
[1:30:12] we've ever had before.
[1:30:13] We're doing that because we need to transform this airport as
[1:30:13] quickly as we can.
[1:30:15] We believe that with the plan that Mike and Cardi have laid
[1:30:18] out in are driving, that we can actually
[1:30:20] deliver this project in 2028, depending on weather
[1:30:24] and some other factors.
[1:30:25] There's a chance we can deliver this before the Olympics.
[1:30:28] We'd obviously like to do that and show the world the next five
[1:30:31] star terminal when they come here for the Olympics.
[1:30:34] But you mentioned what keeps us up at night,
[1:30:36] with speed comes risk.
[1:30:38] So we're trying to balance speed, risk and cost and all
[1:30:41] of those things.
[1:30:42] And we have many other projects that we
[1:30:44] have to devote resources to.
[1:30:46] The team is working right now.
[1:30:48] Our ultimate goal would be to deliver a five star
[1:30:51] terminal before the Olympics.
[1:30:53] Number one goal is to deliver a five star terminal.
[1:30:55] That's what the team is driving towards right now.
[1:30:57] I think we can do it.
[1:30:59] It's tight.
[1:31:04] This is the fastest it's ever been done
[1:31:10] and we're using novel methods that
[1:31:12] are going well right >> Can I just follow up?
[1:31:17] Fastest ever.
[1:31:18] I think that's a great question.
[1:31:19] Why is this the fastest ever, aside from the two of you
[1:31:26] helping lead this?
[1:31:31] >> There are drivers of why it's moving fast,
[1:31:38] because we want it to move faster.
[1:31:39] You may want to speak on that.
[1:31:41] >> John mentioned the Olympic date,
[1:31:44] and while the ultimate goal is to deliver a five star Skytrax
[1:31:44] terminal for LAX, a lot of motivation has been to reflect
[1:31:44] our city and to bring excitement,
[1:31:44] while we have all of the visibility in time
[1:31:46] for the games.
[1:31:47] >> The direct answer is we're doing the offsite construction
[1:31:57] method.
[1:31:58] We're literally rebuilding the onsite.
[1:31:58] We're doing two things at once.
[1:31:58] We've normally done a sequence.
[1:31:58] Terminal for will ultimately take more than eight years
[1:32:00] of disruption to customers, and the inconvenience
[1:32:13] that we all hear about.
[1:32:14] That was a different delivery method.
[1:32:16] We're going to do this in three years.
[1:32:18] >> If you drive down Westchester Parkway which I highly recommend
[1:32:21] every commissioner does, you will see the structures being
[1:32:21] built right on the airfield right at Westchester Parkfield,
[1:32:21] they are massive.?
[1:32:22] Is it only the first one that's?
[1:32:25] I can't tell because at this time
[1:32:27] they're really connected to each other.
[1:32:29] It's a massive structure out there.
[1:32:30] I get these phone calls about, what the heck is going on?
[1:32:34] Terminal five is being built at Westchester Parkway,
[1:32:38] and it's going to move across the airport and connect it to.
[1:32:51] I highly recommend that you look at it.
[1:32:54] >> It's much closer unlike the previous OCR we did.
[1:32:57] They're not actually joined they're.
[1:32:57] They are much closer.
[1:32:57] >> Is it just one module?
[1:33:06] >> One has been topped off.
[1:33:08] We're working on three.
[1:33:09] >> There's excitement and enthusiasm.
[1:33:13] When you hear about the innovation, and that
[1:33:15] of other stories out there, I just
[1:33:15] think the innovation is something
[1:33:16] that we should let the public know about,
[1:33:24] because it is remarkable.
[1:33:26] I think we were told when we were doing this project, highly
[1:33:26] unlikely, and it'll be done in time for the Olympics.
[1:33:26] Now you're thinking about it, its safety
[1:33:28] and all the other features.
[1:33:30] I will say thank you, but I believe
[1:33:34] short of us driving up and down the boulevards,
[1:33:37] I think LA needs to hear about this.
[1:33:41] Because this shows what you folks are doing at LAX keeping
[1:33:56] the airport open 24/7.
[1:33:59] I think that needs to be publicized.
[1:34:01] >> And Mike has been out in the community.
[1:34:01] Making community presentations so that people
[1:34:01] know what's going on.
[1:34:02] >> I want to underscore the offset construction has enabled
[1:34:06] more access for jobs of folks that were not traditionally be
[1:34:09] required to be on the...
[1:34:26] >> Now we have a whole different class of workers that can--
[1:34:34] >> The jobs.
[1:34:34] Can you go back to the inclusivity update slide really
[1:34:35] quickly?
[1:34:36] I just want to commend the direction that LAWA is going in,
[1:34:42] when we look at different percentages.
[1:34:45] And I noticed that you highlighted in green the K-12
[1:34:45] title one Stem programs, and highly
[1:34:46] encourage continued dialog with Mark Frank and his team
[1:34:49] on programs that we have, and how we're helping
[1:34:59] to create those pipelines.
[1:35:00] Because these should also be jobs and opportunities
[1:35:00] for the future workforce and that
[1:35:00] they are able to see themselves working here and having careers
[1:35:01] here.
[1:35:02] Can you redefine for me local workers actual over 40%.
[1:35:07] What is that region include?
[1:35:09] Is it zip codes or LA County?
[1:35:12] >> I would really have to defer that to Mark Frank's team and we
[1:35:23] can get that to you or ask Mark to come up.
[1:35:29] >> Congratulations.
[1:35:30] It's going in the right direction.
[1:35:32] >> Thank you very much.
[1:35:34] One little anecdote and we will end on this slide.
[1:35:34] John witnessed that we had some conversation with trade
[1:35:34] partners working with OCR.
[1:35:34] And we learned something we hadn't learned.
[1:35:35] We're is spreading about this project among our trade partners
[1:35:37] to the point where they think this is such a cool project,
[1:35:39] that we're actually getting the cream of the crop of a lot
[1:35:41] of our trade partners because they want
[1:35:43] to work on this project they want to have
[1:35:45] their finger in this and they want
[1:35:46] to show their kids and grandkids, I did this
[1:35:50] and I worked on this.
[1:35:51] That's something we don't see often.
[1:36:02] We are really just to see that happen.
[1:36:04] >> I was out there, and I met the one who I was talking about.
[1:36:04] Met a lot of the iron workers, they're really proud
[1:36:04] and these are iron workers that have been everywhere.
[1:36:06] They go by seniority.
[1:36:07] This was the hottest project in all of Southern California
[1:36:10] because they built a point for this-- we literally
[1:36:25] have the best iron workers of all of California
[1:36:27] right here in our site.
[1:36:27] And it's not just a hyperbole.
[1:36:27] They are picking and placing steel at double the rate
[1:36:27] of the other crews.
[1:36:27] Double the rates.
[1:36:27] >> That's specifically--
[1:36:39] >> There's a superintendent or I forget the name of the position
[1:36:42] out there.
[1:36:42] The person in charge has said he's done it a few times,
[1:36:42] and they're going very quickly.
[1:36:43] >> And it's specifically for the desire for the part of the first
[1:36:52] five star terminal.
[1:36:52] >> They volunteered and fought to compete on this job
[1:36:52] by seniority because it's the coolest job in Southern
[1:36:52] California right now.
[1:36:53] >> And it also speaks to the leverage that we can have
[1:36:55] and have companies that are are going to be contracted
[1:36:57] and getting these awards and our expectations of them.
[1:37:05] I want to go back to that.
[1:37:18] >> I've got one question.
[1:37:19] Noted on the slide, there's going
[1:37:25] to be a lot of creative concessions
[1:37:26] and placement of food.
[1:37:26] One of the things I'm seeing over the years
[1:37:26] is these projects get done without the input of the people
[1:37:26] we're going to operate.
[1:37:28] It requires lots of retrofits after the fact.
[1:37:31] I do believe I was around here when Tibbitt,
[1:37:44] and I remember the process of having
[1:37:47] to invest a lot more money as a concessionaire
[1:37:49] because the input of where they wanted the consensus, at they
[1:37:54] had configured the building or somewhat aligned.
[1:37:56] I know LA will go through a competitive process,
[1:38:03] but figuring out a way to get input ahead of time
[1:38:06] because you show great slides with market and this
[1:38:11] and that, we're getting input from the people who actually
[1:38:15] have to operate might speed the process
[1:38:17] and make sure that things work more efficiently.
[1:38:25] >> We appreciate that, and to the next point,
[1:38:30] Commissioner Roxburgh's point about the drivers of how
[1:38:32] we've been moving so quickly.
[1:38:32] One of the ways we've been able to do that
[1:38:32] is resourcing this project a little differently than others.
[1:38:32] For the design, it's always difficult to design
[1:38:32] by committee.
[1:38:33] We've done so to a pretty large degree
[1:38:35] to ensure that that was the case.
[1:38:37] That we were pulling in a lot of different feedback
[1:38:39] from diverse groups.
[1:38:41] Our concessions design, we've actually
[1:38:44] had multiple designers, probably about different five firms,
[1:38:48] and our in-house design talent who has been liaising and taking
[1:38:54] feedback from concessionaires to see
[1:38:56] how we can improve and inject that into the project.
[1:38:58] You're right that right now we have
[1:38:59] an open solicitation for concessions
[1:39:01] partners for terminal five.
[1:39:02] I can't speak to it too much.
[1:39:04] We have elongated some of the timelines to do just that.
[1:39:07] We had some industry days, we had outreach days
[1:39:09] before we ever released the solicitation
[1:39:12] and we have some additional time for that.
[1:39:32] >> One last point on the inclusivity update
[1:39:34] and the requirements.
[1:39:34] I've never seen this before, but on house individual hires.
[1:39:36] So the commitment is-- it's one that I
[1:39:48] thought that is really great in a creative way
[1:39:50] to try to help people take the next level up, earn income.
[1:39:52] >> This is the first project I'm aware of that's really trying.
[1:39:57] It's particularly satisfying to know
[1:39:58] we had our first unhoused individual employed
[1:39:58] on a project.
[1:39:58] The requirement will hopefully get there
[1:39:58] because we've got a lot more tradespeople coming
[1:40:00] on board over the next year.
[1:40:03] The actual staffing is on the upswing,
[1:40:08] and it will spike next year.
[1:40:17] That was particularly satisfying to see
[1:40:18] that we're able to do that.
[1:40:25] >> Looks like Flag Metro is doing a program like that.
[1:40:27] Mr. Frank and I toured a program where they're doing that.
[1:40:27] It's something there to take lessons from.
[1:40:29] >> Thank you both.
[1:40:34] If there are no further questions or comments, a motion
[1:40:36] to approve item number 34?
[1:40:37] Thank you.
[1:40:44] Commissioner Velasco moved and Commissioner Roxborough
[1:40:47] seconded.
[1:40:47] All those in favor, say aye.
[1:40:56] [Members voting] The ayes have it.
[1:40:59] Item 34 is approved.
[1:41:01] Item 35.
[1:41:05] >> We have a short leading for you because if my memory serves
[1:41:07] me correctly, I think Commissioner Velasco
[1:41:07] and Commissioner Roxborough were the only two people here back
[1:41:08] in 2020 when the board approved this project.
[1:41:11] I thought I'd do a brief recap for you guys.
[1:41:14] This project was awarded to Skanska back in 2020,
[1:41:18] and it was done as a hybrid design build project.
[1:41:22] Its intent as CEO Ackerman mentioned,
[1:41:25] was to provide all critical structure that would connect all
[1:41:29] of the big projects together.
[1:41:32] We were able to do in this first project, 19 individual projects
[1:41:37] ranging from brand new streets, to street widening,
[1:41:40] to landscaping and major underground utility
[1:41:44] construction.
[1:41:48] We undergrounded every single power line
[1:41:57] that would serve all of the facilities of lamp.
[1:42:00] We also did some major drainage improvements, as well as
[1:42:02] some work in the central terminal area.
[1:42:02] One of the really unique aspects of this project
[1:42:02] was a provision that the board allowed
[1:42:04] us to put in, which was called the gap Project Allowance.
[1:42:07] That allowed us to give the flexibility and the nimbleness
[1:42:13] to be able to react when things came up
[1:42:15] and when there were projects that were not
[1:42:16] identified in 2020 that were absolutely critical to make
[1:42:19] happen.
[1:42:20] That gave us the flexibility to do that.
[1:42:22] We were able to do ten additional projects
[1:42:25] with that flexibility that you approved.
[1:42:29] The construction of those 29 projects
[1:42:32] finished earlier this year.
[1:42:34] So the team has been working on closing out
[1:42:38] the project and today we're ready to issue the final change
[1:42:41] order, which will completely close out of the project.
[1:42:45] The final change order covers three areas
[1:42:46] that we are wrapping up.
[1:42:47] One is compensating Skanska for some of the additional permit
[1:42:51] fees that we are experienced on the project.
[1:42:54] Compensates Skanska and their subcontractors
[1:42:57] for some of the permit delays that happened on the project.
[1:43:01] It also goes and realizes some of the credits
[1:43:04] for some of the work that was Descoped because it was either
[1:43:08] no longer needed because time had passed
[1:43:11] and wayfinding is a great example of that,
[1:43:13] and also for a project that just physically could not
[1:43:17] be constructed when we anticipated them in 2020.
[1:43:20] The total change order value is $15.7 million.
[1:43:24] The good news is completely covered by the contingency
[1:43:27] that you approved in 2020.
[1:43:29] I did want to compliment our partners comments on this.
[1:43:35] Have been an amazing partner.
[1:43:37] Just several examples.
[1:43:39] Here inclusivity performance.
[1:43:41] You can see here they far exceeded 6% on a small business.
[1:43:49] 18% on local business, local small business and additional
[1:43:53] 10%.
[1:43:54] And the one that people seem to struggle with,
[1:43:57] the disabled veterans and they were able to increase that by 2%
[1:44:00] as well.
[1:44:03] The other thing I wanted to comment on is the safety record.
[1:44:07] It's been a long time and I've been here doing this a long time
[1:44:10] it's been a long time since I've seen a project of this length.
[1:44:14] Six years where they were able to have
[1:44:17] zero last time incidents.
[1:44:20] That's a compliment to Skanska, to their safety culture,
[1:44:23] to our safety culture for helping to drive that.
[1:44:29] That was a big deal.
[1:44:30] They also put in eight graduates of our higher lacks program,
[1:44:35] which was amazing to see, giving people a high paying union jobs.
[1:44:39] That was fantastic as well.
[1:44:42] That was really glad to see that that wasn't the only person that
[1:44:47] was a great project.
[1:44:48] As CEO Ackerman mentioned, ENR it
[1:45:00] recognizes as the best project in the region for aviation
[1:45:03] and transit section.
[1:45:04] I wanted to take just one quick minute.
[1:45:06] We have a small but mighty team here in the audience today.
[1:45:16] Stand up.
[1:45:18] [Applause] And I just want to personally thank them
[1:45:20] for doing what they do every single day to make
[1:45:22] this project successful.
[1:45:28] You guys rock.
[1:45:30] Thank you.
[1:45:30] In brief, we're asking you to approve the final change order
[1:45:30] and give the CEO the authority to execute that change order
[1:45:33] and happy to answer any questions.
[1:45:36] >> Are there any speakers on this item?
[1:45:51] >> No.
[1:45:51] >> The comment period for this item is closed any questions
[1:45:52] or comments from the board?
[1:45:53] >> Thank you to the team.
[1:45:57] It's very cool.
[1:45:58] These are long projects.
[1:45:58] It's very cool to see when something comes to completion,
[1:45:58] to be able to stamp that and we appreciate your time
[1:46:00] and hard work.
[1:46:01] It does not go unseen.
[1:46:04] Had a very good question on this specific extended overhead
[1:46:08] portion, because out of the total of the 15.7,
[1:46:12] it looks like from the breakdown that almost 11
[1:46:16] is from an extended overhead.
[1:46:30] Can you talk a little bit about that?
[1:46:31] Why it was that?
[1:46:32] >> If you guys recall, and this is another silver lining.
[1:46:36] Because this is the last project that
[1:46:37] is being done under the previous MOU with our city agencies.
[1:46:38] And you're probably recall about two years ago
[1:46:41] we completely revamped that.
[1:46:42] We took all of the failures and the lessons
[1:46:45] learned for all of these projects
[1:46:47] and incorporated it into that new MoU.
[1:46:50] I have to say that has been very effective so far.
[1:46:55] Especially the way we're measuring that is
[1:46:57] on our Atmp roadways project.
[1:46:59] We're not going to see any of those permit delays
[1:47:02] that we have experienced on the Lamp program.
[1:47:06] That extended overhead is solely related
[1:47:08] to permit delays that we experienced from Bow where
[1:47:13] we did not meet the commitments of the original MOU.
[1:47:16] That is compensating thanks for being on the job
[1:47:20] a lot longer than we anticipated.
[1:47:21] There's an additional line item for the permit fees.
[1:47:36] >> There's an additional line item?
[1:47:38] >> Correct.
[1:47:40] General overhead compensates them for being here longer
[1:47:43] and having to work longer.
[1:47:43] The longer they are here, the longer
[1:47:43] BOE charges for permit fees.
[1:47:43] It's not just BOE, it's the other agencies as well.
[1:47:43] It's a factor of time, and that those permits
[1:47:45] are open longer that we have to pay more fees for those permits.
[1:47:49] >> Thank you for that.
[1:48:05] >> Briefly, best and safest.
[1:48:09] For a six year construction project
[1:48:10] to have no lost time in California.
[1:48:10] I've been doing this 35 years.
[1:48:10] Unheard of.
[1:48:10] Well done.
[1:48:10] Leadership, safety training, everything,
[1:48:13] a positive to talk about.
[1:48:15] That's highly unusual.
[1:48:16] Well done.
[1:48:19] >> The whole team and everybody be on there.
[1:48:37] >> If there are no more comments or questions,
[1:48:39] could I have a motion to approve item number 35?
[1:48:39] Commissioner Labeau moved and Commissioner Velasco seconded.
[1:48:41] All those in favor, say aye.
[1:48:53] All those opposed, say no.
[1:48:54] Item number 35 is approved.
[1:48:55] We're now on item number 36.
[1:48:55] Can I invite Doug Webster?
[1:48:55] He doesn't look like Doug Webster.
[1:48:57] >> Close resemblance.
[1:49:08] >> Good morning, Vice President Aramayo, commissioners.
[1:49:11] My name is futon with facilities manager division.
[1:49:11] I'll be filling in for Mr. Webster today.
[1:49:12] Item before you, 36, is to request
[1:49:24] to approve the First Amendment to contract DA57072
[1:49:26] with Durst LLC.
[1:49:26] The requested amendment will increase the contract authority
[1:49:26] by 2 million and extend the contract term
[1:49:27] by an additional two years.
[1:49:29] This contract provides required testing maintenance, replacement
[1:49:32] and repair services for automatic closing fire
[1:49:34] assemblies, doors and security gates, levers at LAX and Van
[1:49:39] Nuys Airport.
[1:49:40] These assets are important components
[1:49:46] of LAWA's fire and safety operational infrastructure.
[1:49:54] In particular, fire door assemblies
[1:49:55] are subject to annual inspection, testing
[1:49:56] and certification under Los Angeles Fire Department chiefs.
[1:49:59] Contractor support is needed to complete the required testing as
[1:50:03] well as prompts.
[1:50:07] The contract has almost been fully Expanded.
[1:50:11] 99% has been used.
[1:50:13] The requested amendment will provide sufficient authority
[1:50:16] and contract time to continue these critical services
[1:50:19] without interruption.
[1:50:21] And I'm available for any questions.
[1:50:26] >> Are there any speakers for this presentation?
[1:50:41] >> No.
[1:50:42] >> We will close the comment period for this presentation.
[1:50:42] Any questions or comments from the board?
[1:50:42] If there are no further questions or comments
[1:50:44] I have a motion to approve item number 36?
[1:50:58] >> So moved.,
[1:50:59] >> Second.
[1:51:02] >> All those in favor, say aye.
[1:51:07] Those opposed, say no.
[1:51:11] [Members voting] The ayes have it.
[1:51:14] Item number 36 is approved.
[1:51:20] Item 37.
[1:51:21] >> Item 37 is a request to approve a third amendment
[1:51:22] to our contract DA5638 with Katie Industries,
[1:51:22] increasing the contract authority by 2.6 million
[1:51:24] and extend the contract term by one year for May 1928.
[1:51:27] 80 industry provides specialized medium voltage
[1:51:30] and electrical support services for,
[1:51:33] emergency repairs, maintenance, testing, support
[1:51:38] and technical training for our FMD staff.
[1:51:41] The amendment is needed due to several significant and
[1:51:45] unanticipated electrical system events that
[1:51:47] have accelerated the contract expenditures, including
[1:51:50] medium voltage switchgear repairs at the Tom Bradley
[1:51:54] Terminal.
[1:51:55] Electrical pulse weight failures at terminal seven
[1:51:58] and critical breaker failure at the Mercury Air Cargo facility
[1:52:02] and the recent emergency repair of--
[1:52:13] additional funding will support the ongoing switchgear
[1:52:20] modernization efforts, s, emergency response capability,
[1:52:22] technical training and specialized training services
[1:52:22] necessary to maintain safe, reliable and compliant operation
[1:52:25] of Laos electrical infrastructure.
[1:52:27] The systems are critical to airport operations
[1:52:29] and support essential fire life safety and security functions
[1:52:33] throughout lax.
[1:52:34] While not inclusivity goals were identified for the contract,
[1:52:44] KT industries is certified with the City of Los Angeles
[1:52:49] as both a local business enterprise and a small business
[1:52:51] enterprise.
[1:52:52] I'm available for any questions.
[1:53:01] >> Are there any speakers for this item?
[1:53:04] >> No, madam chair.
[1:53:06] >> Any board have questions or comments?
[1:53:07] >> Does this cover contract van Nuys as well or just
[1:53:07] specifically lax?
[1:53:08] >> Or Van Nuys.
[1:53:19] >> Any other questions or comments?
[1:53:20] Could I please have a motion to approve item number 37?
[1:53:24] Thank you, Commissioner Roxborough for moving
[1:53:34] and Commissioner Velasco for the second.
[1:53:36] All those in favor please say aye.
[1:53:43] Any opposed, say no.
[1:53:49] The ayes have it.
[1:53:50] Item number 37 is approved.
[1:53:51] >> I just want to say thanks for presenting those items.
[1:53:55] Foo is a member of the Maintenance Leadership team
[1:53:58] and has been coming off of 24 hour employee barbecues.
[1:54:01] I think all the executives in the front row,
[1:54:01] they were late last night or early this morning,
[1:54:01] who was there for both and he still did a great job.
[1:54:04] Thank you for that.
[1:54:14] Thank you for leading our team.
[1:54:21] [Applause]
[1:54:21] >> We are now on item number 38.
[1:54:23] I would ask Mr. JP to come up.
[1:54:32] Nope.
[1:54:33] >> I look like him but I'm not him.
[1:54:33] My name is Denise Semple.
[1:54:33] I'm director of concessions and antenna relations.
[1:54:33] I'm here to talk about the seventh amendment
[1:54:35] to the terminal media operator concession agreement
[1:54:38] with JC Decaux.
[1:54:50] Has been here for about 20 years.
[1:54:52] They were awarded their first contract in 2014.
[1:54:52] They've been an incredible contract for us
[1:54:52] and has built and made sure that things
[1:54:52] like you see on the screen and Tom Bradley
[1:54:54] are showing us content all the time and mostly luxury.
[1:54:56] Their revenue to us has exceeded over $276 million over the term.
[1:55:02] The current contract expires at the end of 2027.
[1:55:07] The reason we're in front of you today
[1:55:18] is we would like a year extension for them
[1:55:19] to continue us through the Olympics,
[1:55:22] continuous through the ongoing reconstruction
[1:55:25] project of Tom Bradley, four and terminal five.
[1:55:27] And because they were a partners in Paris of the Olympic Games,
[1:55:27] we know they're capable of of bringing us
[1:55:28] the top of the line experience with the Olympic team.
[1:55:32] And overview of this amendment is
[1:55:41] this will get us an additional year through the Olympics.
[1:55:43] It will also during 2028 provide us
[1:55:43] an increase in revenue share from our current 70% to 73%,
[1:55:46] which is about a $1.4 million increase in revenue
[1:55:50] in that year.
[1:55:51] It enables JC to to upgrade the integrated media
[1:55:55] system in the Tom Bradley, which includes
[1:56:09] all of the storyboard and the Tom tower,
[1:56:11] the Bon Voyage wall, all of which
[1:56:11] have not been upgraded since they were installed in 2012.
[1:56:11] There's a cost to that of about $25 million.
[1:56:13] This will also allow Jcdecaux to finalize the installation
[1:56:17] of all the things in terminal four, whatever
[1:56:20] assets we allow them to install in terminal five.
[1:56:24] We do is we promise you previously, planned
[1:56:27] to release an RFP in 2027, for a new or continuing terminal media
[1:56:33] operator.
[1:56:33] We will host an industry day, we have talked about
[1:56:37] to encourage other companies and make sure
[1:56:49] that everybody can present their ideas so that we understand
[1:56:52] the reality of what could be coming to us in the future.
[1:56:52] And to have them be part of our discussion.
[1:56:54] As Commissioner Daniels mentioned .
[1:57:04] Do you have any questions?
[1:57:14] >> Do you have any questions?
[1:57:20] >> Do we have any speakers for this item?
[1:57:23] >> Yes.
[1:57:25] Adam Sullivan.
[1:57:31] >> Good morning.
[1:57:33] Vice president and esteemed members of the board.
[1:57:33] Good morning.
[1:57:33] I'm here to testify to the two decade partnership between LAWA
[1:57:38] and JCDecaux.
[1:57:42] The collaboration that stands as a benchmark
[1:57:44] for public private success in the airport media concession
[1:57:44] industry.
[1:57:44] I can proudly say that over the duration of this contract
[1:57:44] we have not just managed an advertising program.
[1:57:44] Working collaboratively with Lawa
[1:57:45] fundamentally transformed it and delivering immense value
[1:57:48] across three core pillars.
[1:58:03] We transform the media program into a premier revenue engine.
[1:58:06] When COVID 19 decimated global air travel,
[1:58:06] this close collaboration ensured our partnership did not crumble.
[1:58:09] Demonstrated an remarkable agility
[1:58:10] and our advertising revenues have
[1:58:14] increased beyond COVID levels.
[1:58:16] Even though overall passenger numbers
[1:58:18] have not yet fully recovered.
[1:58:19] This momentum was further underscored
[1:58:21] by our immensely successful revenue
[1:58:23] performance due to the recent World Cup
[1:58:26] providing our collaborative strategy successfully maximizing
[1:58:30] financial yield and protect Laos baselines
[1:58:33] and performs wider industry turns.
[1:58:37] Secondly, we have spearheaded the complete reinvention
[1:58:40] of the airport media environment establishing
[1:58:42] an ecosystem where digital is not the dominant media format.
[1:58:45] Looking ahead, the proposed contract extension
[1:58:48] is absolutely critical to the future proofing of Los media
[1:58:53] infrastructure.
[1:58:59] May I continue?
[1:59:12] >> Thank you.
[1:59:13] You're done.
[1:59:14] >> Any questions or comments from the board?
[1:59:17] With that, I will ask for a motion
[1:59:20] to be made to approve item number 38.
[1:59:23] Thank you, Commissioner Lobo moved
[1:59:31] and Commissioner Roxborough seconded.
[1:59:34] All those in favor, please say aye.
[1:59:43] Any opposed, say no.
[1:59:47] The ayes have it.
[1:59:49] Item number 38 has been approved.
[1:59:50] Are there any speakers on moving to the next item?
[1:59:52] Are there any speakers on closed session items?
[2:00:00] >> No.
[2:00:01] >> The comment period is now closed I would like to turn
[2:00:01] the time over to City Attorney before we break into closed
[2:00:01] session.
[2:00:01] >> Thank you.
[2:00:01] We were now going to the closed items
[2:00:01] to discuss those items listed on the closed session agenda.
[2:00:03] We will return back and report any action
[2:00:05] taken in the open session.
[2:00:25] >> Thank you.
[2:00:27] [Meeting has entered closed session]