Fengate PCL Construction PGAL AC Martin MVI JCI Morley Southland Morrow Meadows Syska Englekirk Kimley-Horn Robert and Company RELM LA Gateway Partners LAX ConRAC Outreach Meeting January 25, 2017
Agenda Topic Description LA Gateway Partners Team Introduction Team Members and Organizational Structure Why LA Gateway Partners? Collective Experience and Strengths Public-Private Partnership ( P3 ) Delivery Method Consolidated Rent-A-Car ( ConRAC ) Project Overview Inclusion Contractual Structure Benefits of Private Financing Cash Flow Model Background - LAMP LAMP Components Project Details Delivery Schedule LAWA SBE Program LAWA LBE / SLBE Programs LAWA Hiring Programs HireLAX / First Source Community Resource Partners Additional Resources and Training LAGP Procurement Process Becoming Eligible for Partnership ConRAC - Potential Business Opportunities Design, Engineering, and Professional Services / Construction / Operations and Maintenance Registering with LAGP Registration Instructions Breakout Sessions 2
LA Gateway Partners Team Introduction Team Members and Organizational Structure Project Sponsor Financial Advisor Lenders Direct Agreements Project Agreement Debt Providers Consortium Equity Providers Bond Investors / Lenders Lending Agreements Equity Agreements Design-Build Agreement O&M Agreement Design-Build Team Interface Agreement O&M Provider Design Subcontract Agreement Subcontract Agreements Design Team Subcontractors O&M Subcontractor Design Team Subconsultants 3
Why LA Gateway Partners? Collective Experience and Strengths Benefit Commitment to Inclusivity Delivery Method Design-Build Experience Service Provider Experience Financing Expertise Description LAGP has a commitment to achieving the highest possible participation from Local, Small, Emerging, Minority, Woman, Disabled Veterans, and other Disadvantaged Business Enterprises and will take the necessary steps to ensure that the project team, businesses and workforce is reflective of Los Angeles. LAGP has a strong track record of dedication to the pursuit, investment and development of large P3 projects across North America. LAGP has successfully developed and constructed numerous major projects in North America using the DBFOM model on time and under budget. LAGP brings together a service provider with combined extensive availability-based experience combined with CONRAC specific technical knowledge. LAGP has a successful track record of raising billions of fully committed financing on large and complex P3 projects. Available Equity Capital LAGP has access to significant, fully committed discretionary equity capital to ensure minimal execution risk. Performance Security Trusted Local Partner LAGP has a successful track record of securing construction and service focused performance security in order to achieve projects with high credit ratings. LAGP members have operated in Los Angeles for over 100 years; strong relationships / past experiences with LAWA and LADBS. 4
P3 Delivery Method Contractual Structure 5
P3 Delivery Method Benefits of Private Financing 6
P3 Delivery Method Cash Flow Model 7
ConRAC Project Overview Background LAMP Los Angeles World Airports ( LAWA ) is the airport authority for Los Angeles LAWA is in currently undertaking a multi-billion dollar modernization program at LAX to improve access to the airport: the Landside Access Modernization Program ( LAMP ) LAMP encompasses four separate projects, including a Consolidated Rent-A-Car Facility ( ConRAC ) 8
ConRAC Project Overview LAMP Components 9
ConRAC Project Overview Project Details Component Ready/Return Area (RAC) Area where customers pick-up and return vehicles Quick-Turnaround Area (QTA) Facilities for multi-level fueling, wash and vehicle maintenance QTA Support and Additional Site Functions Fuel storage and distribution; supervisor and vendor parking; car carrier delivery; vehicle staging corrals; loading docks/service yard Customer Service Building (CSB) Mini-mall lobby with customer service counters, restrooms, retail amenities and other functions connected to the APM station via an open courtyard and to the Ready/Return Area via vertical circulation cores with escalators and elevators Bus Plaza For shuttle buses for a potential interim shuttle bus operation and for off-airport rental car companies Automated People Mover (APM) Station Provides customers with convenient connection to the CTA Idle Storage For overflow vehicles to meet peak demand Rental Car Employee and Visitor s Parking Provides personal vehicle parking Design Basis Floor Space (Sq. Ft.) 7,600 rental equivalent stalls 2,311,500 720 staging positions; 186 fuel nozzles; 37 wash bays; 63 maintenance bays 19 car carrier stalls and adjacent staging lanes; 348 stalls in dedicated secured car corrals 100,000 square feet lobby and RAC offices; 4 vertical circulation cores 10 bus bays; vertical circulation core connected to the CSB Separate load and unload platforms 779,700 215,000 278,000 54,000 24,000 10,000 storage stalls 1,905,000 1,100 employee stalls; 366,000 75 visitor stalls Total ConRAC Program 5,933,200 Airport Employee Parking (Outside of ConRAC) (provides personal vehicle parking) 1,800 stalls 752,000 10
ConRAC Project Overview Delivery Schedule Procurement Construction Operations RFQ Release Shortlist Announced Award Contract Construction Phase Starts ConRAC Commissioning 2016 2017 2018 2022 2023 [2053] Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 H1 H2 H1 H2 RFQ Submission RFP Release Financial Close Construction Phase Ends Operations Phase Starts Operations Phase Ends 11
Inclusion LAWA Small Business Enterprise ( SBE ) Program Effective October 1, 2012. LAWA will require a specific, mandatory percentage of small business subcontracting on construction, professional and non-professional projects valued in excess of $150,000. SBE is defined as an independently-owned and operated business that meets criteria set forth by: Federal Small Business Administration (SBA); and State of California SBE Program. Sample Size Standards Applied by LAWA Industry General Building and Heavy Construction Contractors Special Trade Constructions Contractors Most Manufacturing Industries Computer Programming, Data Processing, and System Design Engineering Services Environmental Consulting Services Architectural Services Financial Investment and Related Activities LAWA Size Standard $33.5 million $14.0 million 500 employees $25.0 million $14.0 million $14.0 million $14.0 million $14.0 million LAWA Agencies and Certification Types Agency Certification LAWA SBE Federal Small Business Administration SBA 8(a) California Dept. of General Services SB, MB Caltrans SMBE, SWBE, DBE Los Angeles County Metro SBE, DBE California Unified Certification Program DBE US Women s Chamber of Commerce WOSB, EDWOSB Women s Business Enterprise Council WEST WOSB National Women Business Owners Corporation WOSB, EDWOSB City of Los Angeles SLB 12
Inclusion LAWA Local Business Enterprise ( LBE ) Program A business entity that occupies work space within the County of Los Angeles, is in compliance with all applicable City of Los Angeles and County of Los Angeles licensing and tax laws, and can demonstrate one of the following: i. it is headquartered in the County and physically conducts and manages all of its operations from a location in the County; ii. iii. that at least 50 of its full-time employees perform work within the boundaries of the County of Los Angeles at least 60% of their total regular hours worked on an annual basis; or that at least half of the full-time employees (50%) of the business perform work within the boundaries of the County at a minimum of 60% of their total, regular hours worked on an annual basis. A business entity with multiple locations within the County can aggregate 50 of its full-time employees working at least 60% of their regular hours from its different locations within the County to qualify as a Local Business Enterprise. LAWA Small Local Business Enterprise ( SBLE ) Program A business enterprise that is a Local Business Enterprise and is also a Small Business Enterprise. 13
Inclusion HireLAX Program The LAX Modernization Program, which is set for completion in 2023, will generate the following economic development: Create an additional 122,000 jobs annually; This job impact generates $7.6 billion in wage income; $20.3 billion in business revenue; $966 million in state and local taxes; and $8.7 billion in federal tax revenue. Mayor Eric Garcetti, the LAWA Board of Airport Commissioners, and the Los Angeles/Orange County Building and Construction Trades Council are committed to the PLA s 30% local worker participation goal. First Source Hiring Program 14 Purpose: ensure that the communities impacted by the LAX Master Plan Program also receive benefits through the Community Benefits Agreement (CBA). The purpose of the CBA is to provide economic benefits to local communities in the Project Impact Areas (PIA) affected by airport projects: South Los Angeles, Lennox, Hawthorne, El Segundo and Inglewood. Benefits: The program provides early access to targeted applicants for available LAX airport jobs, and employers receive prompt, cost-free referrals of qualified and trained applicants. Providers: All Contractors, Lessees, Licensees, and Construction Contractors with non-trade jobs, with new, amended, or renewed contracts are required to participate in this program.
Inclusion Community Resource Partners 15
Inclusion Additional Resources and Training Event Date Location Contractor Development & Bonding Program MWIS, Bonding 101 LAWA, How to Do Business LACCD, The Principles of Project and Safety Cost Estimating: Improve Bid Estimates by Determining Project Cost and Profit PCL Construction, How to Do Business LAUSD Small Business Bootcamp January 31 5:30pm February 1 9:00am February 2 9:00am February 15 10:00am March 7 April 2 5:30pm MWIS Office 550 S. Hope #1835 Los Angeles, CA Los Angeles World Airports 7301 World Way West 4 th Fl Los Angeles, CA LACCD & NAMC 400 W. Washington Blvd. Aspen Hall Room 101 PCL Construction Services 500 N. Brand Blvd., Ste 1500 Los Angeles, CA 91203 LAUSD 333 S. Beaudry Avenue Los Angeles, CA 90017 16
LAGP Procurement Process Becoming Eligible for Partnership 1. Register your firm on the LAGP website 2. Review on-going updates from the LAGP team 3. Respond to Procurement Opportunity related emails issued by LAGP 4. Make sure your SBE certifications are current Please contact LAGP for assistance with any of the following items: Applying for SBE certification Preparing bids Obtaining bonding / insurance Developing a safety program 17
ConRAC Potential Business Opportunities DESIGN ENGINEERING SERVICES / OTHER PROFESSIONAL SERVICES Construction Support BIM Signage & Graphics Acoustics & Vibration Low Voltage Systems Vertical Transportation CMU Metals Woods & Plastics Structural/Misc Steel Roofing Janitorial Services Pest Control Elevators/Escalators 18 Site Analysis Printing/Production Landscape Design Enclosure/Waterproofing Code Consulting Flow Simulation Tile HVAC Plumbing Site Concrete Waterproofing CONSTRUCTION Permit Expediting Security Design Plumbing Engineering Traffic Engineering Structural Engineering Fire Protection Electrical Carpet Utilities Doors OPERATION & MAINTENANCE IT & Data Systems Painting Roads and Grounds Exterior Window Cleaning Waste/Recycling Security Guard Services Fire Protection Engineering Electrical Engineering: power or lighting Civil Engineering Hardware Drywall Painting Acoustical Ceilings Glazing Specialties
Registering with LAGP Instructions Visit our website and click on the Contract Opportunities tab. Register your organization s contact info with LAGP to receive project information including upcoming events, trainings, and RFP information. Visit our Events/Resources page for upcoming events, trainings, and available resources. www.lagatewaypartners.com 19
Breakout Sessions Construction Grand Ballroom (PCL Construction, Morley, Morrow Meadows, Southland) Finance Hermosa Room (Fengate) Design + Engineering Laguna Room (PGAL, AC Martin, Syska Hennessy, Kimley-Horn, Englekirk, Robert and Company) Operation + Maintenance Malibu Room (Johnson Controls, MVI) 20