Los Angeles World Airports

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RESOLUTION NO. 26095

BE IT RESOLVED that the Board of Airport Commissioners approved award of a five (5)-year Contract to ABM Onsite Service - West, Inc. covering property management services for Palmdale landholdings of Los Angeles World Airports, as referenced in the Board-adopted staff report attached hereto and made part hereof; and

LAX

LA/Ontario

Van Nuys

City of Los Angeles

BE IT FURTHER RESOLVED that the Board of Airport Commissioners authorized the Chief Executive Officer to execute said contract upon approval as to form by the City Attorney and upon approval by the Los Angeles City Council; and

Eric Garcetti Mayor

Board of Airport Commissioners

BE IT FURTHER RESOLVED that this action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines; and

Sean 0. Burton President

Valeria C. Velasco Vice President

BE IT FURTHER RESOLVED that actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 373.

Jeffery J. Daar Gabriel L. Esliaghian Beatrice C. Hsu Nolan V. Rollins Dr. Cynthia A. Telles

Deborah Flint Chief Executive Officer oOo

I hereby certify that this Resolution No. 26095 is true and correct, as adopted by the Board of Airport Commissioners at its Regular Meeting held on Thursday, November 3, 2016.

Sandra J. Miller-SecretaryBOARD OF AIRPORT COMMISSIONERS

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1 World Way Los Angeles California 90045-5803 Mail PO. Box 92216 Los Angeles California 90009-2216 Telephone 310 646 5252 Internet www.lawa.aero

• Los Angeles World Airports Itei fiber; •:

REPORT TO THEBOARD/OF AJBBQRT COMMISSIONERS

Meeting Date:

:or, Propertv/ServicesApprovedb^\. Ramon Olivares,YBii 11/3/2016

□ Completed

lebbie Bowers, Depmy Executive DirectorReviewed by: PendingCAP Review:

□ N/A

A /M'JX Reviewed for Date Approval Status ByCity Aftorne; Capital Budget

Operating Budget

10/6/2016 BY □ N □ NA

BYD N DNA

BY □ N

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10/7/2016 RW

\Akr CEQA 9/26/2016 AEV.Deborah Flint - Chief Executive Officer Procurement 9/26/2016 BY DN □ CondY MT

Guest Experience 10/4/2016 BY ON BY

SUBJECT: Award of Contract to ABM Onsite Service - West, Inc.

Award a five-year contract to ABM Onsite Service - West, Inc. for property management services at Palmdale Landholdings in an amount not to exceed $7,500,000.

RECOMMENDA TIONS:

Management REQUESTS that the Board of Airport Commissioners:

1. ADOPT the Staff Report.

DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines.

2.

FIND that the work can be performed more economically or feasibly by an independent contractor than by City employees.

APPROVE the award of a five-year contract to ABM Onsite Service - West, Inc. for property management services at Palmdale Landholdings in an amount not to exceed $7,500,000.

3.

4.

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5. AUTHORIZE the Chief Executive Officer to execute the contract after approval by the Los Angeles City Council and approval as to form by the City Attorney.

DISCUSSION:

1. Purpose

Provide continued property management services at Palmdale Landholdings.

2. Prior Related Actions

December 6, 2010- Resolution No. 24310 (DA-4567)The Board of Airport Commissioners (Board) approved a three-year contract with a two-year renewal option with Line Facility Services, LLC for property management services for Los Angeles World Airports (LAWA) at Palmdale Landholdings for a not- to-exceed annual amount of $2,500,000.

January 23, 2012 - Resolution No. 24696 (DA-4567)The Board approved a Consent to Assignment and Assumption of Contract DA-4567 from Line Facility Services, LLC to ABM Facility Services, Inc.

February 3, 2016 - Resolution No. 25880 (DA-4567) .The Board approved a First Amendment to Contract DA-4567 with ABM Facility Services, Inc. to extend the term of the contract from March 31, 2016 to December 31,2016 to allow time to complete a competitive process for a new contract.

3. Current Action

Palmdale Landholdings consists of approximately 17,500 acres of land and various buildings. Developed properties at Palmdale Landholdings include industrial buildings, most of which are occupied by tenants, including Site 9, originally developed by Rockwell International for military aircraft assembly. A large portion of the155 acres of Site 9 is currently leased by the National Aeronautics and Space Administration and Kinkisharyo International, LLC, a manufacturer of light rail cars. In addition, there is a tenant-leased- and-operated 50-acre, 9-hole golf course. The remainder of the approximately 17,500 acres is comprised of unleased vacant land and areas leased by the Los Angeles County Sanitation District and various agricultural tenants.

ABM Facility Services, Inc. (ABM), an operating division of ABM Industries, currently provides property management services at Palmdale Landholdings. ABM has provided these services since January 2012. As the current contract expires on December 31, 2016, a new contract is necessary to continue services to maintain LAWA land and facilities at Palmdale Landholdings. Staff conducted a competitive process to find a property manager. Out of that process, ABM was ranked the highest and staff recommends award of the contract to ABM.

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Procurement Process

On June 7, 2016, staff released a Request for Proposals (RFP) for Property Management Services at Palmdale Landholdings on the Los Angeles Business Assistance Virtual Network (LABAVN). Procurement Services Division set the Small Business Enterprise (SBE) program subcontracting participation level at 10%. RFP responses were due August 18, 2016. The evaluation panel included the following staff:

• Deputy Executive Director - Commercial Development Group• Managing Director - Commercial Development Group• Director - Property Services, Commercial Development Group

The three-member evaluation panel reviewed written proposals according to the evaluation criteria listed below:

CRITERIA POINTS

Qualifications, Experience and Financial Capability 30

Management and Operations Plan 20

Financial Proposal 35

Financial Capacity 15

Sub Total 100

Local Business Preference Program (LBPP) Qualified 8

Total Points 108

LAWA received two proposals, and both firms passed the Administrative Requirements review conducted by the Procurement Services Division. The panel interviewed both firms and ranked ABM Onsite Service - West, Inc. highest based on the criteria outlined in the RFP. The proposers were ranked as follows:

1. ABM Onsite Service - West, Inc.2. Jones Lang LaSalle Brokerage, Inc.

The proposed contract with ABM Onsite Service - West, Inc. (ABM West), will provide property management services for leased property, occupied buildings, unleased property and other areas at Palmdale Landholdings, to include maintenance, repairs, inspections, regulatory compliance, and emergency response. ABM West will be providing four full time property management staff working on-site to perform the day-to-day required maintenance duties. The contract scope of work consists of base services including all routine maintenance and individual repairs having a cost of up to $2,500, and additional services which are provided to LAWA at an additional cost.

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Base services will be provided to LAWA for an Annual Management Fee of $977,471 *and include:

Routine services as described in scope of work Individual repairs costing up to $2,500 All personnel costsAdministrative and overhead expenses EquipmentVehicles and associated fuel costs Licenses and permits Insurance

Additional services, provided to LAWA based on actual cost , include:

• Certifications and inspections• Emergency repairs• Construction projects• Repairs costing over $2,500 each• Services not included in scope of work and approved by LAWA• Various contractual services: fire monitoring, fire watch, monthly waste management

^Subject to a 2% annual adjustment.With an administrative fee for certain services of 5% to 10%

As noted above, ABM West proposed to perform required base services at a cost of $977,471 per year. However, to provide payment to ABM West for any costs associated with additional services, the total value of the contract will be $7,500,000 for the five-year period. LAWA staff will approve all additional costs outside the base services.

Action Requested

Staff requests the Board authorize the Chief Executive Officer to execute a five-year contract with ABM West for Property Management Services at Palmdale Landholdings in an amount not to exceed $7,500,000.

Fiscal Impact

The costs incurred under this contract will be reimbursed through non-aeronautical revenues. The current contract provided for a maximum annual expenditure of $2,500,000 or $12,500,000 over the 5-year term of the contract. Staff has reviewed the last 5-years’ expenditures for the current Palmdale Property Management Contract and adjusted the total new contract value to $7,500,000 accordingly. The projected costs have been budgeted in the 2016-2017 fiscal year.

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4. Alternatives Considered

• Take No Action

Taking no action is not recommended as the current property management contract expires on December 31, 2016. LAWA’s continued use of a property management company for the management of Palmdale Landholdings will allow LAWA to dedicate staff resources for priority projects at its active airports and allow for flexibility contracting labor resources on an as-needed basis.

APPROPRIATIONS:

Funds for this item are available in the Fiscal Year 2016-17 LAWA Operating Budget in PMD Cost Center 1500005 - PMD Asset Management, Commitment Item 520 - Contractual Services. Funding for subsequent years will be requested as part of the annual budget process.

STANDARD PROVISIONS:

This action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines.

1.

This contract is subject to approval as to form by the City Attorney.2.

Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 373.

3.

ABM Onsite Service - West, Inc. will comply with the provisions of the Living Wage/Service Contract Worker Retention Ordinances.

4.

Procurement Services has reviewed this action (File No. 7152) and established a 10% mandatory Small Business Enterprise (SBE) goal for the project. ABM Onsite Service - West, Inc. committed to 10% SBE participation.

5.

ABM Onsite Service - West, Inc. will comply with the provisions of the Affirmative Action Program.

6.

ABM Onsite Service - West, Inc. has been assigned Business Tax Registration Certificate number 000126205-0001-1.

7.

ABM Onsite Service - West, Inc. will comply with the provisions of the Child Support Obligations Ordinance.

8.

ABM Onsite Service - West, Inc. will have approved insurance documents, in the terms and amounts required, on file with Los Angeles World Airports prior to issuance of a Notice to Proceed.

9.

Pursuant to Charter Section 1022, staff determined the work specified on the proposed contract can be performed more feasibly or economically by an Independent Contractor than by City employees.

10.

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11. ABM Onsite Service - West, Inc. has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program.

12. ABM Onsite Service - West, Inc. has been determined by Public Works, Office of Contract Compliance to be in full compliance with the provisions of the Equal Benefits Ordinance.

13. This action is not subject to the provisions of the First Source Hiring Program.

14. ABM Onsite Service - West, Inc. has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions.

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