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I think you are suppose to call your local LA Fitness. Also, call at the end of the month. I just called local gym and asked them to waive the initiation fee because 24 hour isn't charging one if i joined my sister's plan for $29.99/month and they said yes come in.
Called Kay, she's able to do first/last at $39/mo and the rest at $29 no initiation, which is equivalent to a $20 initiation fee and is still a good deal. I was able to dig up an email from January 2014 from LA Fitness asking me to come back at $29/mo $0 initiation, so I was able to avoid the extra $20 as well.