0150-11292-0003
T R A N S M I T T A L
TO
Justin Erbacci, Chief Executive Officer
Department of Airports
DATE
COUNCIL FILE NO.
FROM
The Mayor
COUNCIL DISTRICT
11
Proposed Agreement (Resolution No. 27341) with ABM Aviation, Inc. to Manage and
Operate Remote Employee Parking Lots, and Provide Transportation Services for a 10-
year Term
Transmitted for further consideration. The Council has 60 days from the date of receipt to act,
otherwise the contract will be deemed approved pursuant to Administrative Code Section 10.5(a).
See the City Administrative Officer report attached.
MAYOR
MWS:DG:10220040t
CAO 649-d
11/18/21
(Rich Llewellyn for)
REPORT FROM
OFFICE OF THE CITY ADMINISTRATIVE OFFICER
Date: CAO File No. 0150-11292-0003
Council File No. [Click and type #]
Council District: 11
To: The Mayor
From: Matthew W. Szabo, City Administrative Officer
Reference: Communication from the Department of Airports dated September 14, 2021;
referred by the Mayor for report on September 14, 2021
Subject: APPROVAL TO AWARD AN AGREEMENT TO ABM AVIATION, INC. TO
MANAGE AND OPERATE REMOTE PARKING LOTS AND PROVIDE
TRANSPORTATION SERVICES AT LOS ANGELES INTERNATIONAL AIRPORT
RECOMMENDATION
That the Mayor:
1. Approve the award of a new proposed Agreement with ABM Aviation, Inc. (ABM; Contractor)
to manage and operate remote employee parking lots at Los Angeles International Airport
(LAX), and provide courtesy shuttle services between the remote employee parking lots for
LAX employees and the public, for a 10-year term and a total contract amount not to exceed
$160 million, subject to City Attorney approval as to form and compliance with the City’s
Standard Provisions, including the: Service Contractor Retention and/or Living Wage
Ordinance, Affirmative Action Program, Business Tax Registration Certification, Child
Support Obligations Ordinance, insurance documents, Charter Section 1022, Contractor
Responsibility Program, First Source Hiring Program, Bidder Contributions City Ethics
Commission Form 55, and Iran Contracting Act of 2010 Affidavit;
2. Authorize the Chief Executive Officer to execute the Agreement with ABM, upon approval
by the Los Angeles City Council, and prior to execution of the Agreement, ABM must be
determined by Public Works, Office of Contract Compliance, to be in conformity with the
provisions of the Equal Benefits Ordinance; and
3. Return the request to the Los Angeles World Airports for further processing, including
Council consideration.
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Off
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November 9, 2021
CAO File No. PAGE
0150-11292-0003
2
SUMMARY
The Los Angeles World Airports (LAWA) Board of Airport Commissioners (BOAC) requests
approval to award a new contract to ABM to manage and operate remote employee parking lots,
and provide employee transportation services at LAX for an amount not to exceed $160 million for
a 10-year term.
The new contract will require ABM to provide: 1) oversight of, and parking management for LAWA’s
three remote Employee Parking Lots (East, West, and South) and auxiliary employee parking lots
located at various LAX locations, such as Lot A, Air Freight #8, Imperial Cargo Complex, Imperial
Terminal and the Recreational Vehicle Lot, as shown in Attachment A of the BOAC report; 2)
courtesy shuttle services for LAX employees and the public between the remote employee parking
lots, LAX City Bus Center and the LAX Central Terminal Area (CTA), seven days a week; 3) parking
services include, web-based on-line parking permit sales, collection of parking revenue and deposit
into LAWA’s bank account, access control system (ACS) upgrade, maintenance and operation,
parking lot cleaning and lot security patrols; 4) Acquisition, fueling and maintenance of the new bus
fleet; and, 5) electrical vehicle (EV) charging infrastructure and install bus chargers in one of the
remote employee parking lots.
The ABM bus fleet proposal includes procurement of 22 new Carbon Neutral Gas (CNG) buses
and eleven new electric buses, in compliance with California Air Resources Board (CARB) zero-
emission airport shuttle (ZEAS) vehicle requirements for 33 percent EV replacements by December
31, 2027. As a result of ABM absorbing the bus acquisition fees, providing the EV infrastructure
and installing bus chargers, LAWA will not incur any capital expenses associated with this contract,
and holds the right to purchase and take ownership of the buses, in addition to owning the charging
infrastructure in the event of term expiration or early termination.
In accordance to the Termination Payment Provision in the proposed contract, the City will pay the
Contractor a Convenience Termination Payment should the City terminate the Agreement prior to
the expiration of the contract date, which consist of:
x An amount equal to the outstanding bus lease payment costs and EV charger infrastructure
costs owed by the City as reflected in the Business & Operations Plan, which total
$19,164,087 over the 10-year term for the buses and $614,300 for the EV charger
infrastructure
x The Contractor’s shut down expenses of a not-to-exceed amount of $250,000.
There will be no additional cost to LAWA to acquire the buses beyond the Convenience Termination
Payment. ABM will also include a buy-out provision in its lease in order to transfer ownership to
LAWA if ABM elects to acquire the buses through lease financing.
Employee parking permits are purchased by LAX staff through an on-line platform at a monthly rate
of $60 per month. A three year overview of LAWA’s revenue collection and the amount paid to the
CAO File No. PAGE
0150-11292-0003
3
City for City Occupancy/Parking Tax, which is levied at a rate of 10 percent of the gross parking
revenue, is presented in the table below.
Fiscal
Year
Gross Parking
Revenue
City Occupancy/Parking
Tax
LAWA Net Parking
Revenue
FY ‘19 $13.3 million $1.3 million $12 million
FY ‘20 $14 million $1.4 million $12.6 million
FY ‘21 $9.6 million $0.96 million $8.7 million
Total $36.9 million $3.7 million $33.3 million
*Note: Figures are rounded to improve readability
Through the first quarter of Fiscal Year 2022, parking permits have generated $2.2 million in gross
parking revenue. The remaining balance of the current contract authority (Resolution No. 27246)
is $4.9 million and the Agreement is set to expire on December 31, 2021. LAWA will terminate the
existing agreement with ABM once the new agreement is approved by Council.
Pursuant to Charter Section 373, “Long Term Contracts Approved by Council”, and the Los
Administrative Code Section 10.5(a), “Limitation and Power to Make Contracts”, actions taken on
this item by the BOAC will be deemed approved unless the Council takes action disapproving a
contract that is longer than three years within 60 days after submission to Council.
BACKGROUND
The Department currently has an Agreement with ABM to manage and operate three major remote
employee parking lots with an estimated combined total of 7,000 parking spaces, in addition to
approximately 1,000 supplemental employee parking spaces at LAX’s auxiliary locations through
Agreement DA-4891. The BOAC and City Council recently approved a Second Amendment with
ABM (Resolution No. 27246) to extend the current term of the Contract through December 31,
2021, on a month-to-month basis, and increase the contract authority by $7.8 million, for a total
not-to-exceed amount of $65.9 million. The Second Amendment allows time to execute the
Request for Proposal (RFP) process and obtain approvals for the new Remote Employee Parking
and Transportation Services agreement (Resolution No. 27341).
The procurement process consisted of a strategy to shift the ownership of and responsibility to
acquire and maintain new buses to the successful bidder in order to mitigate risk to LAWA.
Furthermore, the proposed Agreement included an opportunity for proposers to provide bus
charging solutions for EV buses and comply with CARB-ZEAS vehicle requirements.
In an effort to provide the aforementioned services, the Department released a RFP on November
17, 2020. On February 4, 2021, three firms submitted proposals in response to the RFP to
participate in a competitive selection process. A five-member evaluation team interviewed the three
proposers based upon weighted criteria. Based on the scoring results after the best and final offers
(BAFO) were received, the final rankings were: ABM Aviation, Inc. – first rank; LAZ Parking
California, LLC - second rank; and, Zero Trans – third rank.
CAO File No. PAGE
0150-11292-0003
4
LAWA proceeded to negotiate a contract with ABM to perform the proposed scope of work
described in the Proposed Agreement (Resolution No. 27341), as a result of the Contractor’s ability
to provide the required technical scope of services and present the most favorable cost proposal
and hourly blended rates for staff positions. In addition, ABM has significant airport and LAX
transportation experience as they currently manage LAX and VNY’s Smart Parking Program and
serve as the incumbent operator for LAX Remote Employee Parking and Transportation services.
The Contractor also has committed to an ACDBE inclusivity goal of 12.93 percent, which exceeds
the 10 percent requirement set forth in the RFP.
The Proposed Contract is a reimbursable agreement which does not contain management fees,
and the 10-year term allows sufficient time to spread out the investment for the bus acquisitions.
LAWA will make payments to ABM for cost recovery expenses that include Labor Cost for On-
Site Staff, Bus Costs, other qualified reimbursable expenses and a monthly “Operator Fee” that
covers Operator’s profits only. The cost for the 10-year term is $159.7 million, an amount
negotiated between LAWA staff and ABM.
Pursuant to, and in alignment with the City of Los Angeles COVID-19 Vaccination Requirements
(Ordinance 187134), LAWA Chief Executive Officer provided a directive setting forth LAWA’s
policies and expectations to all Contractors who work in LAWA offices, which mandate full
vaccination for contractors, employees of contractors, or persons working on its behalf who are
assigned to work on City property for the provision of services, or come into contact with the public
during the course of work on behalf of the City. The directive also includes language that identify
weekly testing requirements and approved exemptions. Contractors, employees of contractors, or
persons working on its behalf who are assigned to work on City property that are not in compliance
with the requirements set forth in the directive are prohibited from working at LAWA.
FISCAL IMPACT STATEMENT
Approval of the 10-year contract with ABM Aviation, Inc. to manage and operate remote employee
parking lots at Los Angeles International Airport (LAX), and provide courtesy shuttle services for
LAX employees and the public between the remote employee lots, LAX City Bus Center and LAX
CTA, for a total contract amount not to exceed $160,000,000 will have no impact on the General
Fund. Funds for the proposed Contract are available in the Fiscal Year 2021-22 Los Angeles
Airports Operating Budget in LAX Cost Center 2001509 – LND Employee Parking Lots,
Commitment Item 520 – Contractual Services. Funding for subsequent fiscal years will be
requested as part of LAWA’s annual budget process.
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