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RESOLUTION NO. 27009

BE IT RESOLVED that, on recommendation of Management, the Board of Commissioners approved the First Amendment to Reimbursement Agreement DA-4914 with Signature Flight Support, LLC to extend the term by three (3) years, with two (2) one-year extension options, covering reimbursement to Los Angeles World Airports for U.S. Customs and Border Protection facility expenses related to designation and operation of a User Fee

LAX Customs and Border Protection facility at Airport, under Memorandum of Agreement DA-4933 between said agency and Los Angeles World Airports, as referenced in the Board- Van Nuys adopted staff report attached hereto and made part hereof; and City of Los Angeles

Eric Garcetti BE IT FURTHER RESOLVED that the Board approved continuation of said Memorandum of Mayor Agreement DA-4933 with the U.S. Customs and Border Protection; and

Board of Airport Commissioners BE IT FURTHER RESOLVED that the Board authorize the Interim Chief Executive Officer to execute said First Amendment after approval as to form by the City Attorney and approval by Sean 0. Barton President the Los Angeles City Council; and

Valeria C. Velasco Vice President BE IT FURTHER RESOLVED that issuance of permits, leases, agreements, gate and space assignments, and renewals, amendments or extensions thereof, or other entitlements granting Gabriel L. Eshaghian Bedfrlce C. Hsu use of existing airport facilities or its operations is categorically exempt from the requirements Nicholas P. Roxborough of the Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (18)(c) of the Dr. Cynthia A. Telles Karim Webb Los Angeles City CEQA Guidelines; and

Jusiln Erbaccl Interim Chief Executive Officer BE IT FURTHER RESOLVED that actions taken on said Memorandum of Agreement DA-4933 with the U.S. Customs and Border Protection will become final pursuant to the provisions of Los Angeles City Charter Section 245; and

BE IT FURTHER RESOLVED that actions taken on said First Amendment to Reimbursement Agreement DA-4914 with Signature Flight Support, LLC will become final pursuant to the provisions of Los Angeles City Charter Section 373.

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I hereby certify that this Resolution No. 27009 is true and correct, as adopted by the Board of Airport Commissioners at its Special Meeting held on Thursday, April 30, 2020.

Grace MigueL-'Secretary BOARD OF AIRPORT COMMISSIONERS

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1 World Way Los Angeles California 90045-5803 Mail P.O.Box 92216 Los Angeles California 90009-2216 Telephone 855 463 5252 lnlernelwww.lawa.org /.os Angeles World Airports REPORT TO THE BOARD OF AIRPORT COMMISSIONERS Meeting Date: %awoh Olivms

Approved by: Ramon Olivares - Director, Property Services 4/30/2020

vJf □ Completed Reviewed by: Jeffrey Utterback - Deputy Executive Director CAO Review: Pending Commercial Development Group n N/A Reviewed for Date Approve! Status By CifV Attorney Finance 4/17/2020 K1Y □ N □ NA RW

CEQA 4/15/2020 KlY □ N VW

----- ^ Procurement 4/22/2020 BY ON □ Cond MJ

Justin Efoacci, Interim Chief Executive Officer Guest Experience 4/21/2020 KYDN BY

Strategic Planning 4/16/2020 BYDN KV

SUBJECT: Approval of First Amendment to Reimbursement Agreement No. DA-4914 with Signature Flight Support LLC at , and Approval of Continuation of Memorandum of Agreement No. DA-4933 between Los Angeles World Airports and U.S. Customs and Border Protection

Approve the First Amendment to Reimbursement Agreement No. DA-4914 with Signature Flight Support LLC to reimburse Los Angeles World Airports for U.S. Customs and Border Protection facility expenses at Van Nuys Airport, and approve continuation of Memorandum of Agreement No. DA-4933 with U.S. Customs and Border Protection for the continued designation and operation of a User Fee Customs and Border Protection facility at Van Nuys Airport.

RECOMMENDA TIONS:

Management RECOMMENDS that the Board of Airport Commissioners:

1. ADOPT the Staff Report.

2. DETERMINE that this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines.

3. APPROVE the First Amendment to Reimbursement Agreement No. DA-4914 between Los Angeles World Airports and Signature Flight Support LLC.

4. APPROVE continuation of Memorandum of Agreement No. DA-4933 with the U.S. Customs and Border Protection.

5. AUTHORIZE the Interim Chief Executive Officer to execute the First Amendment to Reimbursement Agreement No. DA-4914 between Los Angeles World Airports and

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Signature Flight Support, LLC CBP Facility Signature Flight Support LLC upon approval by the City Attorney and approval by the Los Angeles City Council.

DISCUSSION:

1. Purpose

To continue U.S. Customs and Border Protection (CBP) international flight clearance services at Van Nuys Airport (VNY) by extending the term of Reimbursement Agreement (Agreement) No. DA-4914 and to authorize continuation of Memorandum of Agreement (MOA) No. DA-4933 with CBP until terminated by either party.

2. Prior Related Actions

• June 2, 2014 - Board Resolution No. 25429 The Board of Airport Commissioners (Board) approved of a five-year Agreement with Signature Flight Support Corporation to allow Los Angeles World Airports (LAWA) to recover costs associated with the designation of VNY as a User Fee Airport. On April 21, 2020, LAWA consented to the conversion of Signature Flight Support Corporation to Signature Flight Support LLC (Signature).

• September 4, 2014 - Board Resolution No. 25510 The Board approved of a MOA with CBP to designate, develop, and operate a User Fee Customs and Border Protection facility at Van Nuys Airport.

3. Current Action

Background

Since 2007, VNY had been without customs agents when CBP discontinued on-call customs clearance services. On May 21,2015, VNY opened a dedicated User Fee Customs and Border Protection facility at VNY under a MOA between CBP and LAWA. The re­ designation of VNY as a User Fee Customs and Border Protection facility was the culmination of nearly a decade of close collaboration among airport management and tenants to improve services in a manner that adds convenience for arriving international travelers, while reducing emissions and airspace congestion in the region.

The location of the facility at the Signature site was determined and agreed upon by a team consisting of LAWA staff, CBP, and the Fixed Base Operators (FBO) operating at VNY at that time. The Signature site was identified as the optimal location to house the 1,528- square-foot facility, which met CBP’s General Aviation Facility Design Standards. The User Fee Airport facility is operated and managed by Signature under a five-year Agreement with LAWA. The Agreement, in combination with the MOA, provide the mechanism that ultimately allows CBP to be paid for the costs associated with providing CBP agent services at VNY. Key to both agreements is the principle that CBP services are to be provided at no cost to LAWA and without any impact on CBP staffing at Los Angeles International Airport (LAX).

Under the current Agreement, which expires on May 20, 2020, Signature invested approximately $225,000 to construct the facility. To date, facility user fees charged to arriving aircraft have successfully offset facility improvement and operating costs paid by Signature. The Agreement provides that Signature reimburse LAWA costs paid by LAWA to CBP, while the MOA provides that LAWA annually pay CBP for its costs. This payment structure was developed to allow CBP to be paid by LAWA, a government entity, as CBP will 1 not accept funds from a non-government entity.

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Signature Flight Support, LLC CBP Facility While the Agreement will expire on May 20, 2020, the MOA does not have a termination date and continues from year to year, unless it is terminated by either party upon 120 days’ written notice for any reason. As such, no execution of additional documents related to the MOA is needed at this time.

The table below provides a summary of key elements of the proposed Amendment to the Reimbursement Agreement:

PROPOSED AMENDMENT

Current Proposed

Term: 5-years Extend 3 years, with two 1-year options at LAWA discretion

Commencement May 21, 2015 No change

Expiration May 20, 2020 May 20, 2023

Termination Provision If Signature defaults and does No change not correct default within 30 days of LAWA’s mailing notification, LAWA may terminate upon ten days’ written notice.

How this action advances a specific strategic plan goal and objective

This action advances this strategic goal and objective: Deliver Facilities and Guest Experiences: Sustain a Strong Business. Approval of the Amendment allows for international flight clearing services to continue at VNY, which helps contribute to a positive guest experience for our airport users and allows our FBOs to remain competitive by offering this convenient and valuable service to its flight customers.

Action Requested

Staff requests the Board approve the First Amendment to the Agreement, authorize the Interim Chief Executive Officer to execute the Amendment upon approval as to form by the City Attorney and approval by the Los Angeles City Council, and approve the continuation of the existing MOA with CBP.

Fiscal Impact

The costs associated with having CBP international flight clearance services at VNY are $246,876 annually; this cost is offset by reimbursement payments from Signature to LAWA.

4. Alternatives Considered

• Take No Action

If the Amendment is not approved, the current Agreement will expire and LAWA will not have the mechanism in place to be reimbursed for the fees it pays to CBP for the services it provides at VNY.

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Signature Flight Support, LLC CBP Facility The MOA between CBP and LAWA continues until either party terminates it. If the Board does not approve LAWA continuing with the MOA, then the MOA would need to be terminated and VNY would no longer have international flight clearing services.

STANDARD PROVISIONS:

1. The issuance of permits, leases, agreements, gate and space assignments, and renewals, amendments or extensions thereof, or other entitlements granting use of existing airport facilities or its operations is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines.

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

3. Actions taken on the Memorandum of Agreement between CBP and LAWA will become final pursuant to the provisions of Los Angeles City Charter Section 245.

Actions taken on the Amendment to the Reimbursement Agreement will become final pursuant to the provisions of Los Angeles City Charter Section 373.

4. This action is not subject to the provisions of the Service Contractor Worker Retention and Living Wage Ordinances.

5. This action is not subject to Business Enterprise (BE) Programs.

6. This action is not subject to the provisions of the Affirmative Action Program.

7. This action does not require a Business Tax Registration Certificate number.

8. This action is not subject to the provisions of the Child Support Obligations Ordinance.

9. This action is not subject to the insurance requirements of the Los Angeles World Airports.

10. This action is not subject to the provisions of Charter Section 1022 (Use of Independent Contractor).

11. This action is not subject to the provisions of the Contractor Responsibility Program.

12. This action is not subject to the provisions of the Equal Benefits Ordinance.

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

14. This action is not subject to the provisions of Bidder Contributions CEC Form 55.

15. This action is not subject to the provisions of the Iran Contracting Act.

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Signature Flight Support, LLC CBP Facility Site Map - Van Nuys Airport

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Signature Flight Support, LLC CBP Facility

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