Los Angeles County

Metropolitan T ransportation Auth ority

Metro
One Gateway P laz a Zi3.922.z 000 T
Los Angeles, CA gooiz-z 952 metro.net
P LANNING AND P ROGRAMMING COMMIT T EE
SEP T EMBER 17, 2014
SUBJECT : WEST SIDE P URP LE LINE EXT ENSION SECT ION 2 P ROJECT FROM
WILSHIRE/LA CIENEGA T O CENT URY CIT Y CONST ELLAT ION
ACT ION: AP P ROVE P URSUIT OF FEDERAL NEW ST ART S FUNDS AND A
T RANSP ORT AT ION INFRAST RUCT URE FINANCE AND INNOVAT ION
ACT LOAN FOR T HE WEST SIDE P URP LE LINE EXT ENSION
SECT ION 2 P ROJECT
RECOMMENDAT ION
A. Auth oriz e th e Ch ief Executive Officer (CEO) to pursue along-term Full Funding
Grant Agreement (FFGA) th rough th e Federal T ransit Administration (FT A) for
Federal New Starts funds in th e amount of $1.146 b illion for th e Westside P urple
Line E~ension Section 2 P roj ect;
B. Approve th e sub mittal of a Letter of Interest to th e United States Department of
T ransportation (USDOT ) for a T ransportation Infrastructure Finance and Innovation
Act (T IFIA) loan in th e amount of $307.0 million for th e Westside P urple Line
Extension Section 2 P roj ect and pay related fees and expenses; and,
C. Approve th e finance plan for meeting th e Measure R Fiscal Responsib ility P olicy and
th e Measure R Cost Management P rocess and P olicy for an anticipated cost
increase in th e amount of $374.3 million for th e proj ect.
ISSUE
T h e Westside P urple Line Extension Section 2 P roj ect (WP LE2) is th e next proj ect in
line to b e constructed and is planned in th e Long Range T ransportation P lan (LRT P ) in
fiscal years 2016 th rough 2026. A Federal New Starts FFGA and loans repayab le with
Measure R 35%funds are consistent with th is proj ect' s funding in th e LRT P . T h e first
step to ob taining an FFGA is sub mittal of a compreh ensive financial plan. T h e first step
to ob taining a contingent commitment of T IFIA credit assistance is sub mittal of a Letter
of Interest (LOI) with th e USDOT . T h e T IFIA loan will req uire additional actions of th e
Measure R Independent T axpayers Oversigh t Committee and Board of Directors prior
to final execution. P rompt approval of th ese agreements can accelerate th e proj ect
revenue operations date b y approximately one year, from 2026 to 2025.
DISCUSSION
New St a r t s Reques t
In 2014, Met r o r ec ei v ed a Fed er a l New St a r t s FFGA of $1.25 b i lli on for t he Wes t s i d e
Pur ple L i n e Ext en s i on Sec t i on 1 Pr oj ec t . To a ls o s ec ur e a New St a r t s FFGA for
WPL E2, t he pr oc es s b egi n s wi t h s ub m i t t a l of a c om pr ehen s i v e fi n a n c i a l pla n t o t he
FTA. The WPL E2 wi ll oper a t e i n s om e of t he m os t d en s ely popula t ed a n d c om m er c i a lly
s i gn i fi c a n t a r ea s of L os An geles Coun t y a n d wi ll pr ov i d e c r i t i c a lly n eed ed s ub wa y
li n k a ges for t he exi s t i n g t r a n s i t s ys t em . The WPL E2 i s expec t ed t o d r a m a t i c a lly
i n c r ea s e ov er a ll s ys t em r i d er s hi p a n d us er b en efi t s , a n d help b r i n g t o r ea li z a t i on t he full
t r a n s por t a t i on a n d ec on om i c b en efi t s of t he s i gn i fi c a n t loc a l a n d fed er a l i n v es t m en t s we
ha v e m a d e t o d a t e i n our t r a n s i t s ys t em . The WPL E2 i s expec t ed t o s c or e hi ghly i n t he
New St a r t s r a n k i n gs a n d wi ll b e a n exc ellen t c a n d i d a t e for a n FFGA.
TIFIA Reques t
The TIFIA pr ogr a m pr ov i d es Fed er a l c r ed i t a s s i s t a n c e i n t he for m of d i r ec t loa n s , loa n
gua r a n t ees , a n d s t a n d b y li n es of c r ed i t t o fi n a n c e s ur fa c e t r a n s por t a t i on pr oj ec t s of
n a t i on a l a n d r egi on a l s i gn i fi c a n c e. TIFIA c r ed i t a s s i s t a n c e pr ov i d es flexi b le r epa ym en t
t er m s , a n d pot en t i a lly m or e fa v or a b le i n t er es t r a t es t ha n c a n b e foun d i n pr i v a t e c a pi t a l
m a r k et s for s i m i la r i n s t r um en t s .
The Mov i n g Ahea d for Pr ogr es s i n t he 21St Cen t ur y Ac t (MAP-21) es t a b li s hes a pr oc es s
for a pplyi n g for TIFIA c r ed i t a s s i s t a n c e t ha t b egi n s wi t h t he s ub m i s s i on of a L et t er of
In t er es t a n d d et er m i n a t i on of eli gi b i li t y. Pr oj ec t s pon s or s m us t s ub m i t a L et t er of In t er es t
t ha t : (i ) d es c r i b es t he pr oj ec t a n d t he loc a t i on , pur pos e, a n d c os t of t he pr oj ec t , (i i )
out li n es t he pr opos ed fi n a n c i a l pla n , i n c lud i n g t he r eques t ed c r ed i t a s s i s t a n c e a n d t he
pr opos ed ob li gor , (i i i ) pr ov i d es a s t a t us of en v i r on m en t a l r ev i ew, a n d (i v ) pr ov i d es
i n for m a t i on r ega r d i n g s a t i s fa c t i on of t he eli gi b i li t y r equi r em en t s of t he TIFIA Pr ogr a m .
For t hi s pr oj ec t , t he a m oun t of Fed er a l TIFIA c r ed i t a s s i s t a n c e m a y n ot exc eed 33
per c en t of t ot a l r ea s on a b ly a n t i c i pa t ed eli gi b le pr oj ec t c os t s . The exa c t t er m s for t he
loa n a r e n egot i a t ed b efi n r een t he USDOT a n d t he b or r ower , b a s ed on t he pr oj ec t
ec on om i c s , t he c os t a n d r ev en ue pr ofi le of t he pr oj ec t , a n d a n y ot her r elev a n t fa c t or s .
When USDOT a ppr ov es t he loa n a ppli c a t i on a n d t he i n d i c a t i v e t er m s a r e k n own , we wi ll
r et ur n t o t he Mea s ur e R Ta xpa yer s Ov er s i ght Com m i t t ee a n d t he Met r o Boa r d of
Di r ec t or s for fi n a l a ppr ov a l t o exec ut e t he loa n .
Mea s ur e R Poli c i es : Fi s c a l (At t a c hm en t Ala n d Cos t Ma n a gem en t (At t a c hm en t B~
At t a c hm en t A d i s c us s es pla n n ed Mea s ur e R b or r owi n g wi t h r ega r d t o t he Mea s ur e R
Fi s c a l Res pon s i b i li t y Poli c y es t a b li s hed b y t he Met r o Boa r d of Di r ec t or s whi c h s t a t es
t ha t Mea s ur e R d eb t s er v i c e (exc lud i n g pr i n c i pa l) m a y n ot exc eed lev els i n t he 2009
L RTP, a s a d j us t ed for t he wor ld wi d e ec on om i c r ec es s i on i n Apr i l of 2010. We fi n d her e
t ha t t he n ew fi n a n c e pla n r em a i n s i n c om pli a n c e wi t h t he Mea s ur e R Fi s c a l
Res pon s i b i li t y Poli c y.
Wes t s i d e Pur ple L i n e Ext en s i on Sec t i on 2 FFGA a n d TIFIA
Attachment B d etai l s the Meas ure R Cos t Management Proces s and Pol i cy anal y s i s to
i nf orm the Board regard i ng cos t i ncreas es to Meas ure R-f und ed p roj ects and the
s trategi es av ai l ab l e to cl os e any f und i ng gap s . The WPLE2 p roj ect warrants s uch an
anal y s i s d ue to the current y ear-of -exp end i ture cos t es ti mate of $2,218.2 mi l l i on, whi ch
i s $374.3 mi l l i on more than the p roj ect' s $1,843.9 mi l l i on y ear-of -exp end i ture cos t
es ti mate i n the LRTP. (The reas ons f or the up d ated cos t es ti mate are d es cri b ed i n
d etai l b el ow.) We f i nd here that b y i ncreas i ng the p ercentage and ti mi ng as s ump ti ons
of the New S tarts f und s f rom one thi rd to one hal f of the p roj ect cos t and f rom $100
mi l l i on p er y ear b egi nni ng i n F i s cal Year (F Y) 2019 up to $145 mi l l i on p er y ear
b egi nni ng i n F Y 2017, we can cov er the enti re $374.3 mi l l i on cos t i ncreas e wi thout
i mp acti ng any other p roj ects or s erv i ces .
F INANCIAL IMPACT
Cos t Increas e
Recent s tud i es and anal y s es hav e s hown that the maj or reas on f or the v ari ance
b etween b ud get es ti mates and b i d s was the s i gni f i cant s i z e and comp l exi ty of Metro' s
trans p ortati on p roj ects . Thes e two f actors (s i z e and comp l exi ty ) al one ap p ear to hav e
created a uni que market i n whi ch onl y a rel ati v el y s mal l numb er of d es i gn-b ui l d
cons tructi on contractors can ef f ecti v el y p arti ci p ate. The l i mi tati on of the numb er of
contractors i s d ue to many f actors , b ut ap p ears to b e the res ul t of cons tructi on s erv i ces
s up p l y and d emand i s s ues . Thes e i s s ues ap p ear to s tem f rom i mp rov i ng economi c
cond i ti ons throughout the country , whi ch has res ul ted i n more d emand f or cons tructi on
s erv i ces , and a s hortage of qual i f i ed d es i gn-b ui l d contractors who hav e the res ources to
f i nance and b ui l d Metro' s p roj ects . The f ew qual i f i ed d es i gn-b ui l d contractors who are
l ef t af ter the i mp act of the Great Reces s i on now may hav e the op p ortuni ty to cov er al l of
thei r cos ts and i ncl ud e greater al l owances i n thei r p ri ce p rop os al s whi l e remai ni ng
comp eti ti v e.
In May 2013, Metro' s Program Management O f f i ce hi red Lel and S ay l or As s oci ates to
s tud y and anal y z e current cons tructi on market cond i ti ons i n the Los Angel es area. In
S ep temb er 2013, S ay l or comp l eted i ts rep ort. The res ul ts of thi s rep ort were us ed b y
Metro to p rep are the Engi neer' s Es ti mate f or the Wes ts i d e Purp l e Li ne Extens i on
S ecti on 1 Proj ect, whi ch p ri ce p rop os al s were recei v ed i n January 2014. The current
cos t es ti mate f or the Wes ts i d e Purp l e Li ne Extens i on S ecti on 2 Proj ect ref l ects the
f i nd i ngs wi thi n the Lel and S ay l or As s oci ates Rep ort, p l us l es s ons l earned f rom the
recent p ri ce p rop os al s recei v ed f rom the Wes ts i d e Purp l e Li ne Extens i on S ecti on 1
Proj ect, and the Regi onal Connector and Crens haw/LAX Proj ects .
The es ti mate al s o ref l ects the recent up ward s wi ng i n the real es tate market and
changes to the p roj ect' s ori gi nal as s ump ti ons f or cons tructi on s tagi ng areas d ue to
recent p rop erty d ev el op ment p l ans b y p rop erty owners . The es ti mate al s o ref l ects the
recent cos t i ncreas es as s een i n the ad v anced uti l i ty rel ocati on contracts on the three
p roj ects currentl y i n cons tructi on.
U nf ortunatel y , Metro coul d not hav e p red i cted the i mp act of the uni que market
cond i ti ons that i t was creati ng f or i ts el f when i t was d ev el op i ng the ori gi nal b ud get
Wes ts i d e Purp l e Li ne Extens i on S ecti on 2 F F GA and TIF IA
estimates in 2010 an d 2011 f o r the thr ee sec tio n s o f the Westside Pur ple L in e
Exten sio n Pr o j ec t. Due to f eder al f un din g r equir emen ts un der the New S tar ts an d TIFIA
pr o gr ams, it sho uld also be n o ted that Metr o usually has to develo p an d " lo c k in " budget
estimates f o r maj o r r ail tr an sit pr o j ec ts well o ver a y ear bef o r e awar din g c o n str uc tio n
c o n tr ac ts. This has pr even ted Metr o f r o m c aptur in g r apidly evo lvin g mar k et c o n ditio n s
in the ear lier c o st estimates.
TIFIA L etter o f In ter est
The TIFIA L etter o f In ter est is the f ir st step to war ds sec ur in g a f eder al lo an autho r iz ed
by MAP- 21. S in c e 2012, Metr o has c lo sed thr ee TIFIA lo an s r epay able with Measur e R
35%f un ds: $545. 9 millio n f o r the Cr en shaw/L AX Tr an sit Co r r ido r pr o j ec t, $160. 0
millio n f o r the Regio n al Co n n ec to r pr o j ec t, an d $856. 0 millio n f o r the Westside Pur ple
L in e Exten sio n S ec tio n 1 Pr o j ec t. L o an s un der the TIFIA pr o gr am r emain attr ac tive
r elative to tax-exempt mun ic ipal bo n ds due to c ur r en t mar k et c o n ditio n s. TIFIA lo an s
bear an in ter est r ate whic h tr ac k s lo n g- ter m U. S . Tr easur y r ates. Fo r the TIFIA lo an f o r
Westside Pur ple L in e Exten sio n S ec tio n 1 Pr o j ec t whic h c lo sed o n May 21, 2014, the
TIFIA r ate was 3. 23% f o r bo n ds matur in g in 2037 while c o mpar able tax-exempt r ates
f o r bo n ds with the same matur ity wer e higher at 3. 89%. Mo r eo ver , we expec t this lo an
to have a subo r din ate po sitio n , c o n sisten t with o ur o ther TIFIA bo r r o win gs, f o r
r epay men t o f the lo an s r elative to o ur plan n ed sen io r bo r r o win g, mak in g the TIFIA lo an
r ate even mo r e attr ac tive. TIFIA lo an s also pr o vide mo r e f lexibility than Metr o ' s
tr aditio n al tax-exempt bo n ds. TIFIA lo an s c an be str uc tur ed with a c apitaliz ed in ter est
per io d dur in g c o n str uc tio n , an in ter est- o n ly ear ly pay men t per io d, an d def er r ed pr in c ipal
r epay men t.
By submittin g the L etter o f In ter est, Metr o will be o bligated to pay the ac tual c o sts o f
US DOT' s exter n al f in an c ial an d legal adviso r s r elated to deter min in g a pr o j ec t' s
eligibility , c r edit an aly sis an d lo an n ego tiatio n s. Fun din g o f the $100,000 pr elimin ar y f ee
is in c luded in the Fisc al Year 2015 budget in c o st c en ter #0521, Tr easur y No n -
Depar tmen tal un der pr o j ec t #660303, task 02, Measur e R Debt S er vic e.
AL TERNATIVES CONS IDERED
In the ado pted L RTP an d subsequen t f in an c ial updates, Westside Pur ple L in e
Exten sio n S ec tio n 2 was the n ext pr o j ec t in lin e an d was sc heduled to o pen in FY 2026.
The West S an ta An a Br an c h an d Air po r t Metr o Co n n ec to r pr o j ec ts wer e sc heduled to
o pen in FY 2027 an d FY 2028, r espec tively . S taf f will in c lude in the FFGA r equest the
in ten tio n to deliver the Westside Pur ple L in e Exten sio n S ec tio n 2 Pr o j ec t in c alen dar
y ear 2025. Pur suin g the FFGA n o w r epr esen ts an o ppo r tun ity to sec ur e c o mmitmen t o f
up to $1. 146 billio n o f Feder al New S tar ts f un ds.
Metr o c o uld delay pr epar atio n o f the New S tar ts FFGA r equest an d TIFIA L OI. This is
n o t r ec o mmen ded as the New S tar ts FFGA pr o c ess r equir es twelve mo n ths o r mo r e
an d the advan tageo us TIFIA lo an s ar e pr o vided o n a f ir st c o me- f ir st ser ved basis. The
Bo ar d c o uld dec ide n o t to appr o ve submittin g the TIFIA L OI. This is n o t r ec o mmen ded
bec ause, in the c ur r en t mar k et en vir o n men t, ac c ess to the TIFIA L o an gives Metr o a
Westside Pur ple L in e Exten sio n S ec tio n 2 FFGA an d TIFIA
lower cost a ltern a ti v e to tra d i ti on a l ta x-ex empt mu n i ci pa l bon d s. Shou ld thi s ma rket
con d i ti on cha n ge, the Metro Boa rd of D i rectors ca n cha n ge cou rse la ter i n the TIFIA
loa n a pprov a l process.
NEXT STEPS
Sta ff wi ll prepa re a n d su bmi t to USD OT a fi n a n ci a l pla n a n d New Sta rts FFGA requ est
a n d a TIFIA L etter of In terest for the WPL E2. As the len gthy Fed era l process ev olv es,
Metro' s ca pi ta l a n d opera ti n g fi n a n ci a l pla n s mu st be u pd a ted to reflect i n crea si n g lev els
of speci fi ci ty a n d d egree of commi tmen t.
On Au gu st 11, 2014, Metro i ssu ed a letter to the FTA requ esti n g a pprov a l to en ter i n to
the En gi n eeri n g Pha se for Secti on 2 of the Westsi d e Pu rple L i n e Ex ten si on Proj ect.
Sta ff wi ll retu rn to the Boa rd requ esti n g fu n d i n g of Proj ect work to be completed d u ri n g
the En gi n eeri n g Pha se a n d to fu n d key a cti v i ti es, su ch a s a d v a n ced u ti li ty reloca ti on s
a n d rea l esta te a cqu i si ti on s pri or to the sta rt of ma j or con stru cti on . D u ri n g the
En gi n eeri n g Pha se, sta ff wi ll con ti n u e to a d d ress possi ble proj ect cost red u cti on s
throu gh v a lu e en gi n eeri n g a n d / or scope red u cti on s, whi le ma i n ta i n i n g the opera ti on a l
requ i remen ts of the Pu rple L i n e Ex ten si on .
Atta chmen ts
A. Mea su re R Fi sca l Respon si bi li ty Poli cy An a ly si s
B. Mea su re R Cost Ma n a gemen t Process a n d Poli cy An a ly si s
Prepa red by : Glori a An d erson , D i rector, Cou n ty wi d e Pla n n i n g &D ev elopmen t
(213) 922- 2457
Ri ck Wi lson , D i rector, Proj ect Con trol
(213) 922- 3627
D a v i d Ya le, Ma n a gi n g Ex ecu ti v e Offi cer, Pla n n i n g, Progra mmi n g, &
Gra n ts
(213) 922- 2469
Westsi d e Pu rple L i n e Ex ten si on Secti on 2 FFGA a n d TIFIA
s
~ . .
Martha Welborne, FAIA
Chief Planning O ffic er
/ ~ ' ` ~
~ G G c ,w :
Bryan enningt n, Exec utive D irec tor
Engin Bring &Construc tion
T.
Westside Purp le L ine Extension S ec tion 2 FFG A and TIFIA
ATTACHMENT A
Measure R Fiscal Responsibility Policy
Debt Service Cap Analysis
Excerpt from Policy adopted in May 2011 and amended in April 2012:
"Cap Measure R Debt Service (Excludin_q Principal) to LRTP Levels
Measure R debt service (excluding principal) to be repaid from th e contingency funds
may not exceed th e levels forecasted to be necessary in th e Long Range
Transportation Plan, except to allow for 30/10, America Fast Forw ard, and similar
financing w h ich may involve issuing debt and/or tak ing out loans greater th an
contemplated in th e 2009 LRTP. 30/10, America Fast Forw ard, and oth er similar
financing must not adversely impact second and th ird decade Measure R proj ects. Th e
Long Range Transportation Plan itself w as adopted using an overly optimistic sales tax
forecast prior to our understanding of th e impact of th e w orldw ide economic recession.
For th is reason, th e Measure R debt service policy cap w ill be measured against th e
LRTP financial model publish ed in Apri12010.
Th is policy applies to net bond interest costs after adding Measure R interest earnings
and exempting interest costs for th e 2010 B uild America B ond(B AB s)/tax exempt bond
pack age. "
Table 1 sh ow s th e debt service cap resulting from TIFIA borrow ing for WPLE2.
Table 1: Summary of Measure R 35% Transit Debt Service Cap WPLE2
(Excluding Principal)
AmendedForecasted SRTP Forecasted Sep
B ond Policy Cap Interest Above/(B elow ) Interest Above/(B elow )
Interest Apri12012 SRTP Polic Cap (Se 2014) Polic Ca
Interest Ex ense $ 1,355.8 $ 878.7 $ 477.1 $ 865.1 $ (490.7))
Notes:
Th e policy applies to Measure R debt service, excluding principal (i.e. interest costs).
Interest earnings are credited and 2010 B uild America B ond debt service, excluding
principal, is exempted. Debt service excluding principal may not exceed levels in 2009
LRTP, as adj usted for th e w orldw ide economic recession in April of 2010.
Westside Purple Line Extension Section 2 FFGA and TIFIA
ATTACHMENT B
WESTSIDE PURPLE LINE EXTENSION SECTION 2 PROJECT
Measure R Cost Management Process and Policy Analysis
Introduction
The Measure R Cost Management Process and Policy (the Policy) was adopted by the
Metro Board of Directors in March 2011. The intent of the Policy is to inform the Metro
Board of Directors regarding potential cost increases to Measure R-funded proj ects and
the strategies av ailable to close any funding gaps. The Westside Purple Line Extension
(Westside Subway Extension) Section 2 Proj ect warrants such an analysis due to an
estimated $374.3 million cost increase. The Measure R funds prev iously targeted to all
three Westside Subway sections amounted to $3,574 million (out of a total Measure R
commitment of $4,074 million) . The remaining $500 million is av ailable but not until FY
2039, far beyond the cash flow needs of the proj ect. We are recommending additional
New Starts funds be requested to solv e the cost increase issue.
Measure R Cost Management Policy Summary
The adopted final Measure R Unified Cost Management Process and Policy stipulates
the following:
" If increases in cost estimates occur, the LACMTA Board of Directors must approv e a
plan of action to address the issue prior to tak ing any action necessary to permit the
proj ect to mov e to the next milestone. Increases in cost estimates will be measured
against the 2009 Long Range Transportation Plan as adj usted by subsequent actions
on cost estimates tak en by the LACMTA Board of Directors. Shortfalls will first be
addressed at the proj ect lev el prior to ev aluation for any additional resources using
these methods in this order:
1) Value engineering and/ or scope reductions;
2) New local agency funding resources;
3) Shorter segmentation;
4) Other cost reductions within the same transit corridor or highway corridor;
5) Other cost reductions within the same sub-region; and finally,
6) Countywide transit cost reductions and/ or other funds will be sought using pre-
established priorities. "
We followed the six steps prescribed by the policy to address the funding gap and
dev eloped the following plan of action:
Westside Purple Line Extension Section 2 FFGA and TIFIA
Value Engineerinq and/or Scope Reductions
During the development of the Section 2 P roj ect, staff conducted value engineering
efforts to control costs. The value engineering items b elieved to have the potential of
y ielding the largest cost savings are incorporated into the proj ect estimates already .
These items included the reduction of underground station footprint siz es and station
depths. Station room lay outs and other architectural elements were standardiz ed to
reduce design, construction, operations and maintenance costs. The P roj ect Team
also analy z ed constructab ility issues and various construction sequencing scenarios to
reduce risk s and the overall durations for tunneling and cut-and- cover underground
construction.
More recently , operational infrastructure was evaluated to determine impacts if not
constructed or purchased. An operational analy sis was performed to verify that the train
cross- over east of W ilshire/Rodeo station could b e eliminated while still maintaining
operational requirements for the P urple L ine Segment 2 Extension. This elimination will
result in significant shortening of the underground station length, thus reducing
construction costs and impacts to traffic and disruption to the streets and b usinesses.
Additionally , the Century City/Constellation Station is proposed to b e reduced in length
b y eliminating the tail track s at the temporary terminus, with P roj ect b enefits similar to
the elimination of the cross- over b y eliminating the tail-track s at the temporary terminus.
F inally , the Rail F leet Management P lan was reviewed to determine if the numb er of
heavy rail vehicles to b e acquired could b e reduced in quantity . The resulting
operational impacts are as follows:
Not constructing the Rodeo crossover, east of W ilshire/Rodeo Station, will
increase passenger wait times b etween trains when one track is out of service
b etween the W ilshire/L a Cienega and Century City/Constellation stations.
Not constructing tunnel/sy stems/track for the tail- track west of the Century
City/Constellation Station will not provide for storage of trains for routine
operations, special events or vehicle maintenance issues. However, the Station
will still provide the minimum operational requirements for a temporary terminus
station to b e located at the Century City/Constellation Station.
Reducing the heavy rail vehicles to b e acquired for Segment 2 from 20 to 10 will
require either: 1) increases in the passenger wait times or 2) operation of shorter
trains.
The impact of the cross- over and tail- track elimination as well as the vehicle reduction
has b een determined to b e reasonab ly acceptab le for the operation of Segment 2.
New L ocal Agencv F unding Resources
W e propose to cover Section 2' s $374. 3 million cost increase b y increasing the
percentage and timing assumptions of the New Starts funds from one third to one half of
the proj ect cost and from $100 million per y ear b eginning in F Y 2019 up to $145 million
W estside P urple L ine Extension Section 2 F F GA and TIF IA
per year beginning in FY 2017. I f we can secure a New S t art s FFGA on t hese t erms,
we can cover t he ent ire $374.3 mil l ion cost increase wit hout impact ing any ot her
proj ect s or services.
S hort er S egment at ion
Whil e short er segment at ion is possibl e f or t he West side S ubway Ext ension, we
recommend against t his st ep f or several reasons. S ect ion 1 was ext ended t o
Wil shire/La Cienega due t o engineering const raint s at t he init ial S ect ion 1 t erminus at
Wil shire/Fairf ax. S ect ion 1 is current l y under const ruct ion. S ect ion 2 serves t he Cit y of
Los Angel es and t he Cit y of Beverl y H il l s wit h one st at ion in each cit y. S hort ening
S ect ion 2 woul d serve no purpose. The onl y S ect ion which coul d be short ened is
S ect ion 3. This woul d req uire el iminat ing t he Vet eran Af f airs S t at ion and moving t he
t erminus t o West wood. I n addit ion t o higher real est at e prices in West wood, el iminat ing
t he Vet eran Af f airs st at ion woul d req uire LACMTA t o prepare a suppl ement al
Environment al I mpact S t at ement / Environment al I mpact Report (EI S/EI R) due t o
signif icant proj ect changes. As a resul t , t here may be signif icant proj ect del ays and
increased cost s t o t he proj ect . We do not recommend short er segment at ion.
Ot her Cost Reduct ions wit hin t he S ame Transit Corridor
The proposed f inancial pl an f or t he West side S ubway Ext ension S ect ion 2 P roj ect does
not req uire any cost reduct ions el sewhere in t he corridor.
Ot her Cost Reduct ions wit hin t he S ame S ubregion
The proposed f inancial pl an f or t he West side S ubway Ext ension S ect ion 2 P roj ect does
not req uire any cost reduct ions el sewhere in t he subregion.
Count ywide Transit Cost Reduct ions
This cost increase does not req uire any count ywide cost reduct ions or ot her f unds.
West side P urpl e Line Ext ension S ect ion 2 FFGA and TI FI A
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