Meeting_Body
CONSTRUCTION COMMITTEE
JULY 16, 2025
Subject
SUBJECT: THIRD PARTY ADMINISTRATION - CITY OF LOS ANGELES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute the FY26 Annual Work Plan Budget for the City of Los Angeles (Attachment A).
Issue
ISSUE
During the design, construction and maintenance phases of Metro projects, a significant amount of support is required from local jurisdictions via an annual work plan. The annual work plan serves as a commitment from the agency for the reimbursement of services by the City of Los Angeles reviewing departments for an estimated amount of services. Without an annual work plan, the City of Los Angeles departments have no funding sources to support the projects in a timely manner in order to meet Metro’s schedules.
Background
BACKGROUND
In April of 2024, a new Master Cooperative Agreement (MCA) was executed between Metro and the City of Los Angeles. The intent of the agreement is to establish a streamlined process among both entities to successfully construct Metro’s ongoing projects. A primary function of the MCA is to clearly identify a yearly budget for each City department to provide those City services, which is labeled the Annual Work Plan. This work plan is consistent with the principles of the new MCA, which contains a streamlined escalation ladder, improved processes for design reviews and acceptance, early involvement and improved collaboration processes, and the inclusion of a Project Liaison to coordinate across City departments for future mega projects.
Discussion
DISCUSSION
The Annual Work Plan funds Metro’s project plan reviews from various City of Los Angeles departments to support design and construction project plans on an annual basis. These services are essential for streamlining project delivery, which includes expediting plan reviews and approvals, ensuring quality and effective construction measures, timely inspections, and other functional efforts as described above. All services are centered to avoid delays and promote cost saving measures to effectively deliver the projects with minimal impacts on the community and provide benefits of enhanced mobility and regional access to underserved populations within the respective project areas.
The action contained herein provides funding for the City of Los Angeles participation in projects within the limit of the current approved FY26 budget for Third Party review and maintenance (Attachment A).
Metro’s efforts to proactively manage these costs will include the following:
A. Controlling the design review process through the early coordination of design efforts to define scope and establish/clarify standards and requirements.
B. Reviewing submittals for completeness.
C. Ensuring that third party requirements are identified and addressed prior to sending to the third party.
D. Reviewing timesheets with each third-party organization on a monthly basis to ensure that the hours charged are appropriate.
E. Conducting executive and staff level partnering with third parties.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The recommended action has no impact on safety.
Financial_Impact
FINANCIAL IMPACT
The funding of $36,571,433 which may be obligated and spent under this one-year work plan, is included in the FY26 adopted budget in the projects requiring the services to be performed by the City of Los Angeles as outlined in Attachment A. Since these are multi-year projects, the Project Managers and the Chief Program Management Officer will be responsible for budgeting future year’s costs. These fund sources are not eligible for rail and bus operating expenses.
Equity_Platform
EQUITY PLATFORM
While considering the projects, Metro will provide an estimated 42 miles of new transit and active transportation systems (pedestrian, bicycle, rail and bus) and 11 potential passenger stations within the City of L.A limits and Equity Focus Communities (EFC). This Board item action will reduce the likelihood of transit and active transportation project delays as well as provide other tangible benefits to the EFCs. This includes expedited, streamlined projects that improve safety and access for multimodal users with minimal negative impacts to the communities, and establishing troubleshooting opportunities to support the EFCs. This will ultimately lead to our operating system providing a world class transit system with reduced air and noise pollution, more walkable neighborhoods, better transportation amenities for individuals with disabilities, less congestion and collisions, and will ultimately better connect communities.
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.
While this item does not directly encourage taking transit, sharing a ride, or using active transportation, it is a vital part of Metro operations, as it facilitates the progress of critical work with the City of Los Angeles departments to reduce red tape and improve outcomes in the planning and construction of Metros projects, which will serve to reduce VMT. Because the Metro Board has adopted an agency-wide VMT Reduction Target, and this item supports the overall function of the agency, this item is consistent with the goals of reducing VMT. 
*Based on population estimates from the United States Census and VMT estimates from the highway performance monitoring system data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Metro’s transit projects support the following strategic plan goals identified in Vision 2028:
• Goal 1: Provide high-quality mobility options that enable people to spend less time traveling.
• Goal 3: Enhance communities and lives through mobility and access to opportunity and.
• Goal 5: Provide responsive, accountable, and trustworthy governance within the Metro organization.
By executing the Annual Work Plan for FY26 and allowing the City departments to continue reviewing plans while advancing a more streamlined approval process, it would positively support Metro’s overall plan and goal of expanding the transportation network, increasing mobility for all users and improve LA County’s overall transit networks and assets.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may reject the recommendation and direct us to include this work under Construction or Professional Services contracts. This is not recommended because it will have the effect of significantly delaying Metro projects.
Next_Steps
NEXT STEPS
Upon Board approval of the annual work plan, the City of Los Angeles will submit the annual work plan to the Los Angeles City Council and Mayor’s Office for adoption.
Attachments
ATTACHMENTS
Attachment A - FY26 Annual Work Plan Anticipated Budget for the City of Los Angeles
Prepared_by
Prepared by: Eduardo Cervantes, Executive Officer; 213-922-7255.
Reviewed_By
Reviewed by: Timothy Lindholm, Chief Program Management Officer; 213-922-7297
