Meeting_Body
CONSTRUCTION COMMITTEE
MAY 21, 2026
Subject
SUBJECT: NORTH HOLLYWOOD TO PASADENA BUS RAPID TRANSIT PROJECT
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
CONSIDER:
A. ESTABLISHING a Life-of-Project (LOP) budget for the North Hollywood to Pasadena Bus Rapid Transit (BRT) Project in the amount of $428,988,535; and
B. AUTHORIZING the Chief Executive Officer to negotiate and execute project-related agreements up to the authorized Life-of-Project budget.
Issue
ISSUE
On December 5, 2024, the Board authorized a Preconstruction Budget for Phase 1 of the North Hollywood to Pasadena BRT Project (Project), which included preconstruction services (constructability reviews, construction staging and phasing development, construction scheduling, estimating and price build-up). Since that time, Metro staff have worked with the Construction Manager/General Contractor (CM/GC), the Design Consultant and the Cities of Burbank, Glendale, Pasadena and Los Angeles to advance the design, complete field investigations, undergo constructability reviews and explore scope refinement and value engineering opportunities. The Project is nearing completion of Phase 1 of the CM/GC contract and is now ready to establish the LOP budget. Establishment of the LOP budget is a required next step to keep the Project on track for successful completion.
Background
BACKGROUND
The Project is a 19-mile Bus Rapid Transit (BRT) corridor with 22 stations. The Project serves as a key regional connection between the San Fernando and San Gabriel Valleys and traverses the communities of North Hollywood (NoHo), Burbank, Glendale, Eagle Rock, and Pasadena. Each community has dense residential populations and many cultural, entertainment, shopping, and employment areas throughout, including the NoHo Arts District, Burbank Media District, Glendale Galleria, Americana at Brand, Eagle Rock Plaza, and Old Pasadena.
The Project goals are to:
• Advance a premium transit service that is more competitive with private automobile travel;
• Improve accessibility for disadvantaged communities;
• Improve transit access to major activity and employment centers;
• Enhance connectivity to Metro and other regional transit services;
• Provide improved passenger comfort and convenience; and
• Support community plans and transit-oriented community goals
Following the completion of the environmental phase in April 2022, the Board certified the Final Environmental Impact Report (FEIR) and approved the Project.
A Program Management Support Services Contract was awarded by the Board in March 2024 and the Contract for final design services was awarded by the Board in May 2024.
The CM/GC approach was selected to deliver and construct the Project and the CM/GC contract for Phase 1 Pre-Construction services was awarded by the Board in December 2024. Throughout the Pre-Construction Phase, Metro, the Designer and the CM/GC have collaborated with the four Cities along the alignment to advance a design that incorporates relevant constructability comments and incorporates input generated from the development of construction staging & phasing plans.
The Board approved Pre-Construction Phase budget allocated funding for Early Works Packages (EWP). EWPs for potholing and site investigation activities and construction in the Pasadena segment of the Project have been approved, and work is underway or completed for these Early Works Packages.
Discussion
DISCUSSION
To date, the Project has been funded under the approved Preconstruction Phase-of-Project Budget of $135,183,738. The proposed $428,988,535 LOP budget for this project is the total project cost. This proposed LOP budget includes all incurred and forecasted costs for the Project, including Metro labor and non-labor costs, support services, environmental/planning, design, preconstruction services, utilities, ROW, construction, and required contingencies. A full breakdown can be found in Attachment A - Funding and Expenditure Plan.
Constructability Reviews and Preconstruction Services
As design advanced, the CM/GC team provided detailed constructability reviews of each design package and prepared construction staging and phasing plans. These preconstruction services supported a collaborative process that resulted in the design team identifying the exact work limits and types of improvements in the subsequent design packages. This collaboration supported the control of cost and scope growth such that the LOP budget request aligns with the low-end of the cost estimate range ($411M - $669M) developed in 2023 as part of an Early Intervention Team (EIT) stage-gate review.
CM/GC Phase 2 Cost Estimating and Negotiations
As the design advanced, the CM/GC prepared and submitted successive Opinion of Probable Construction Cost (OPCC) reports at key design milestones. The development of each OPCC employed a transparent open-book approach, supported by independent cost estimates prepared concurrently and reconciled to validate pricing. Building on the foundation of the developed OPCC pricing for the Pasadena EWP, the balance of construction work was negotiated with the CM/GC after completing an extensive price build-up process incorporating three rounds of estimating, reconciliation, and negotiation between the Contractor’s OPCC and Metro’s Independent Cost Estimate (ICE). The final round of estimating yielded a CM/GC estimate for Phase 2 scope (excluding the value of already approved EWPs) of $261M, and an ICE estimate for the same Phase 2 scope of $240M, reflecting a 9% variance. Final negotiations resulted in a reduced estimated cost for Phase 2 scope of $245M (excluding the value of already approved EWPs).
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of these recommendations will result in upgrades to existing sidewalks, streets and traffic signals, signs and markings. These upgrades will improve pedestrian safety by bringing existing sidewalk into compliance with current ADA requirements, improve lighting and shade at BRT stations improving safety and comfort for transit riders, improve bicycle facilities creating greater separation between cyclists and vehicles and refresh markings and signs improving visibility and improving safety for all roadway uses.
Financial_Impact
FINANCIAL IMPACT
Impact to Budget
The funds required in FY26 for the Phase 1 Preconstruction Services are included in the adopted budget under Cost Center 8510 Project number 871401 and 471401, under various accounts, including professional and technical services. As this is a multiyear project, future fiscal year budgets will be the responsibility of the Project Manager, Cost Center Manager, and the Chief Program Management Officer.
The source of funds for the project is Measure M 35%, TIRCP, REAP 2.0 and Prop C 25%. These funds are not eligible for Metro bus and rail operations.
Multiyear Impact
The Project has capital funding programmed in the Metro financial forecast based on the cost estimate prepared for the Measure M Expenditure Plan of $267 million, which is subject to escalation, and an additional $50 million in SB1 TIRCP funds that was awarded to Metro in 2018. Based on the current expenditure schedule to construct the Project, the Measure M funding can be increased for inflation for a total of $334.3 million.
Metro has also received a grant award from the SCAG Regional Early Action Planning Grants (REAP) 2.0 for the North Hollywood Transit Center project which is included in the Project LOP budget. Additionally, Metro has received $5 million of FTA Community Project Funding which will fund the cost of buses that are related to the Project but not included in the Project LOP budget.
The remaining Project cost of $41.3 million is proposed to be funded from Proposition C 25%, pursuant to the Uniform Cost Management Policy.
The proposed LOP is a cost increase in comparison to the prior cost estimate included in the Measure M Ordinance, and the Project is subject to the Metro Uniform Cost Management Policy (Policy). The Policy requires that funding shortfalls are addressed in the following order.
1. Scope reductions;
2. New local agency funding resources;
3. Value Engineering;
4. Other cost reductions within the same transit or highway corridor;
5. Other cost reductions within the same subregion; and finally,
6. Countywide transit or highway cost reductions or other funds will be sought using pre-established priorities.
The first and third steps in the Policy are to evaluate scope reductions and value engineering. The CM/GC process has already identified and incorporated achievable scope reductions and value engineering that are reflected in the LOP budget.
The second step of the Policy is to look at new local agency funding resources, including discretionary grants and funding along the corridor. Local funding resources (i.e., specific to the affected corridor or subregion) are considered prior to countywide or regional sources so as not to impact the funding of other Metro Board-approved projects and programs or subregions in the County. The Project is located in the Arroyo Verdugo and San Fernando Valley subregions and has stops in the cities of Los Angeles, Burbank, Glendale, and Pasadena. Local funding resources from both subregions and the cities could be considered for the cost increase.
Measure M has funding for a transit-eligible Subregional Equity Program (SEP) in the Arroyo Verdugo subregion. The subregion could allocate a portion of the funding for the Project, which requires notice to and approval by the subregion. However, Motion 48 by Directors Hahn, Garcetti, Solis, Butts, Dutra, and Najarian, which was approved by the Board on June 24, 2021, states that, henceforth the Policy is amended to eliminate the Subregional Equity Program from consideration to address project funding shortfalls during construction (Attachment E). Because of this motion, the SEP is not considered for the Project cost increase.
The Cities of Los Angeles, Burbank, Glendale, and Pasadena receive Measure M, Measure R, and Propositions A and C “local return” funding that is eligible for transit use and could contribute a portion to the Project. It is assumed that these funds would similarly not be supported for the cost increase to the Project.
Regarding State funding, the project is about to enter construction and this would make the Project ineligible for most state discretionary grants (the project does not have federal environmental clearance and is not eligible for federal funding). In addition, the large cost increase will make the project uncompetitive for state funding, as the state has provided Transit and Intercity Rail Capital Program funding and does not generally participate in cost increases.
The fourth and fifth steps are to look at cost reductions for Metro projects along the corridor or subregion. There are no Metro projects along the corridor or in the subregion that are at a point in their development and have the flexibility to be downsized within their current phase.
The final step of the Policy is to use countywide funding, including formula grant funding that is available for projects throughout Metro’s service territory. The primary state formula funding for Metro are the Local Partnership Program and State Transportation Improvement Program. Metro could work with the state to consider funding from these programs for the Project. However, Metro must overcome the fact that the Project has already received state funding, has experienced a cost increase, requires funding soon, and is about to enter construction. In the absence of available State funding, the funding plan for the Project relies on countywide Proposition C 25% funding and this is currently identified as the main funding source to address the cost increase. The Proposition C 25% is currently programmed for several other Metro projects and programs and its use may result in the need to incur debt to fund the cost increase for the Project. Metro has a Debt Policy that limits the amount of Proposition C debt that can be incurred. Any debt issued to fund a contribution to the Project is not expected to result in debt service exceeding the Debt Policy limits.
Equity_Platform
EQUITY PLATFORM
Myers-Shimmick, A Joint Venture (MSJV), made a 43.26% Small Business Enterprise (SBE) and a 3.49% Disabled Veteran Business Enterprise (DVBE) commitment on Phase 1 of this project. The current SBE/DVBE participation is 46.64% SBE and 8.43% DVBE, exceeding both commitments by 3.38% and 4.94%, respectively.
To-Date, Phase 2 - Construction consists entirely of the awarding of Early Works Packages (EWPs). MSJV’s cumulative level of SBE/DVBE participation is 38.22% SBE and 8.87% DVBE, respectively. DEOD will establish the SBE/DVBE goals for the Phase 2 Supplement (Burbank, Glendale and Los Angeles) in accordance with the terms of the contract.
In performance of the Scope of Services, the CM/GC is required to develop a multi-year Cultural Competency plan which was prepared by the CM/GC and submitted to Metro for approval. The Cultural Competency plan remains under review by Metro.
The Project area includes several Equity Focus Communities (EFCs) in North Hollywood, Burbank, Glendale and Pasadena and will provide the benefits of enhanced mobility and regional access for transit riders within those communities. The Project will allow people living in EFCs along the corridor to connect with the greater regional transportation network and key destinations, via the 10 planned stations located in EFCs. Improvements to bicycle and pedestrian facilities are also included as part of the Project, including the upgraded bike lanes on Colorado Boulevard in Eagle Rock, which were added to the Proposed Project in response to feedback received from the community.
Additionally, any potential impacts to existing bicycle and pedestrian facilities along the Project within these communities will be addressed by proposed mitigations during both the construction and operation phases to ensure safe and easily navigable options. Such mitigation measures include wayfinding signage, lighting, and access to pedestrian safety amenities (such as handrails, fences, and alternative walkways) during construction and coordinating with the cities and communities along the corridor to resolve potential bicycle conflicts and identify network enhancements that integrate bicycle and BRT facilities.
The outreach strategy for the Project (during the completed planning and environmental phase) was designed to engage with historically marginalized groups through the use of multilingual outreach materials (English, Spanish, Armenian, and Tagalog), live-translation during meetings, accessible meeting times and locations, regular updates via a mailing list, and transit-intercept surveys to reach current riders who were otherwise unable to attend meetings. The Project team provided robust stakeholder engagement and focused outreach activities to better engage transit riders and EFCs to inform the planning and environmental review and has continued this robust outreach during design and the start construction activities with multiple series of virtual community meetings and in-person “open house” meetings throughout the corridor.
Vehicle Miles Traveled Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.*Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
As part of these ongoing efforts, the Project is expected to contribute to further reductions in VMT as it includes the implementation of a high-quality Bus Rapid Transit alternative connecting the San Fernando and San Gabriel Valleys. This BRT service will enhance transit along the corridor by shortening passenger travel times and increasing service reliability and efficiency. This project is expected to encourage a shift from single-occupancy vehicles to public transit. Additionally, it will enhance access for cyclists and pedestrians to/from the stations.
To help characterize the VMT effects of the Project and provide a basis for comparing Project scenarios, the travel demand model estimated the Project’s VMT benefit by multiplying the number of person-trips shifted from automobiles to transit because of the Project. The estimated user benefit is a savings of about 82,000 VMT resulting in the removal of 22 metric tons of CO2 daily due to the implementation of the Project.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Recommendation supports:
• Strategic Plan Goal 1: Provide high quality mobility options that enable people to spend less time traveling;
• Strategic Plan Goal 2: Deliver outstanding trip experience for all users of the transportation system; and
• Strategic Plan Goal 3: Enhance communities and lives through mobility and access to opportunity.
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Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may not approve this LOP and request that Staff off-ramp the Construction Manager/General Contractor (CM/GC) and competitively bid scopes of work in an attempt to obtain lower costs for this project. Staff does not recommend this alternative because an off-ramp would require additional time for procurement and would jeopardize the project’s ability to deliver the project before the 2028 Games.
Next_Steps
NEXT STEPS
Upon approval of the LOP budget, staff will proceed with executing an Early Works Package that will include construction of the project scope in the Cities of Burbank and Glendale and then the Phase 2 Supplement to the CM/GC Contract that will include construction of the project scope in the City of Los Angeles(North Hollywood and Eagle Rock).The Phase 2 Supplement will extend the Contract’s period of performance through June of 2028. Construction Substantial Completion for this work is scheduled for early 2028. Revenue Operations are scheduled for early 2028, prior to the Games.
Attachments
ATTACHMENTS
Attachment A - Funding and Expenditure Plan
Attachment B - Procurement Summary
Attachment C - Contract Modification/Change Order Log
Attachment D - DEOD Summary
Attachment E - Motion 48
Prepared_by
Prepared by:
Anthony DeFrenza, Deputy Executive Officer, Project Management, (213) 220-0583
Michael McKenna, Deputy Chief Program Management, (213) 922-4239
Craig Hoshijima, Executive Officer, Strategic Financial Planning, (213) 547-4290
Carolina Coppolo, Deputy Chief, Vendor/Contract Management, (213) 922-4417
Reviewed_By
Reviewed by:
Tim Lindholm, Chief Program Management Officer, (213) 922-7297
