Bonin Calls for Review of Contracting Practices at LAX

By City News Service

With $2.4 billion in improvements planned for Los Angeles International Airport, City Councilman Mike Bonin introduced a motion today requesting reports on contracting practices by the city agency that oversees the airport.

Bonin's motion came on the heels of a media report about perks received by consultants as part of lucrative contracts for construction projects involving Los Angeles World Airports, the city agency that runs LAX, L.A./Ontario International Airport and Van Nuys Airport.

Those benefits, which are on top of $300-an-hour consultant fees, include monthly payments for Internet and cable service and $2,648.75 per month for apartment rents, according to the report in the Daily Breeze, which reviewed a $41.5 million contract with Parsons Transportation Group and a $16.4 million contract with Paslay Management Group.

According to Bonin's motion, the report raised questions about the "high cost" of the contracts and whether airport employees could have performed the same tasks "more effectively and efficiently."

Bonin wants LAWA officials to report to the Trade, Commerce and Tourism Committee "on the use of airport consultants, including when to use and not to use those consultants" and to explain "reimbursement costs associated with the current construction management contracts at LAX, including housing, cars, meals, and furniture allowances."

The motion also pointed to an audit released earlier this year by then- City Controller Wendy Greuel that suggested LAWA's "executive management lacks sufficient support" and "relies extensively on outside consultants" for "key modernization management functions."

If Bonin's motion is approved by the City Council, both reports would be due back in 30 days.

Some of the perks received by airport consultants, including monthly allowances for furniture, "caused my eyebrow to arch considerably high," Bonin said.

The Daily Breeze's report and the controller's audit "raises a lot of questions" that he wants airport officials to answer at an upcoming committee meeting, he said.

Bonin said financial choices by LAWA, though they do not impact the city's general fund, could indirectly affect airline ticketing fees and impair the airport agency's ability to provide "amenities" to the public.

LAX, which is undergoing a modernization and expansion project and where construction on renovations to the Tom Bradley International Terminal is nearing completion, is part of Bonin's Westside council district.

During his election campaign, Bonin was a vocal critic of LAWA's plan to move an LAX runway 260 feet closer to residential neighborhoods. The much- debated runway change was approved by the council earlier this year.

Board of Airport Commissioners president Michael Lawson said today the panel sought out consultants because they had a "limited number of employees" for modernization projects they were asked to push through.

"I welcome comment, criticism and analysis and challenges," Lawson said, adding that the commission's task was to "modernize this (LAX) airport and make it world class."

"... And yes, it does cost money to do that and sometimes it costs us more than we think it should. And that's why we competitively bid out these contracts and we get the best price we can for people who bid on these contracts," he said.

The commission today postponed voting on a three-year, $87.5 million contract with AVB Management Partners and Parsons Transportation Inc. Consultants for Parsons were among those who received monthly rent allowances, according to the Daily Breeze.

The commission signed off on several other big-ticket contracts, including a $32.5 million contract for "project controls support services" for LAX projects. The panel also approved additional funding for between $5.7 million and $15.7 million in "airfield marking maintenance" services at LAX and $1.3 million in additional costs for a fire protection system for the Bradley West Core Improvements Project at LAX.