Meeting_Body
CONSTRUCTION COMMITTEE
FEBRUARY 18, 2026
Subject
SUBJECT: LINK UNION STATION PROJECT PRECONSTRUCTION BUDGET
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AMEND the Preconstruction Budget for the Link Union Station Phase A Project (Project) by $210.06 million, from $297.82 million to $507.88 million, to fund early work, third party agreements, real estate acquisitions, and related support costs; and
B. NEGOTIATE and EXECUTE all project-related agreements and modifications to existing contracts within the authorized Preconstruction Budget.
Issue
ISSUE
Staff is seeking to begin early work construction with the Construction Manager/General Contractor (CM/GC), the next phase of CM/GC project delivery. This board action will increase the Preconstruction Budget using available funding so the CM/GC contractor can begin construction of early works project components.
Background
BACKGROUND
The Project is being delivered using the CM/GC delivery method, previously approved by the Board on December 5, 2019. The Board awarded a CM/GC contract to Flatiron West, Inc. (Flatiron) on April 24, 2025. Concurrent to staff confirming the contract, Flatiron informed Metro they had recently converted from a corporation to a Limited Liability Corporation, and therefore, the executed CM/GC contract is with Flatiron Dragados West, LLC. A Notice to Proceed (NTP) to commence Phase 1 Preconstruction Services was issued on July 1, 2025.
The Project will transform how commuter and intercity rail operates in Southern California with new run-through capability at Los Angeles Union Station (LAUS) by providing one-seat rides for Northbound and Southbound run-through service, doubling the capacity of daily train movements, reducing dwell times by as much as 20 minutes, and accommodating future high-speed rail.
The Project includes a run-through structure from the stub end of Union Station, over the 101 Freeway, and connects to the mainline tracks on the West Bank of the Los Angeles River. In this phase, the run-through structure will provide immediate run-through service for Metrolink and the Pacific Surfliner (LOSSAN) on two tracks that connect to Platform 3. However, the run-through structure will be built to accommodate up to nine run-through tracks for future passenger and intercity rail expansion, including California High-Speed Rail.
The Project does not include Phase B, which is planned to include a new rail yard with four new operating platforms and up to nine run-through tracks for Metrolink, LOSSAN and California High Speed Rail, as well as a new Passenger Tunnel.
The Project completed its original California Environmental Quality Act (CEQA) environmental clearance in July 2019, followed by a CEQA amendment in October 2021 and a Final Supplemental Environmental Impact Report (FEIR) in October 2025, reflecting design development, mitigation measures, and modifications related to BNSF West Bank Yard and Malabar Yard.
In parallel, the California High-Speed Rail Authority (CHSRA), serving as the National Environmental Policy Act (NEPA) Lead Agency, prepared the joint Environmental Impact Statement (EIS). The CHSRA Board considered the Final EIS and Metro’s SEIR certification on November 20, 2025, confirming its intent to issue the Final EIS/ROD, which will complete federal environmental clearance and maintain the Project’s eligibility for state and federal funding programs. On January 14, 2026, the CHSRA authorized the Final EIS/ROD.
On May 26, 2022, the Metro Board approved a Partial Preconstruction Phase Life of Project Budget (Preconstruction Budget) of $297.818 million for the Preconstruction Work for the Project, consisting of planning, environmental, preliminary engineering, final design, third-party work, early demolition work, real estate acquisitions, and all associated soft costs. Of the $297.818 million previously approved, $257.880 million has been committed to preconstruction activities that have substantially advanced the project, reduced risk, and positioned the project to proceed into the next phase of delivery. Activities advanced have included the following: Supplemental CEQA and NEPA environmental clearance for the viaduct and the Malabar Yard, project design development (from preliminary engineering beginning in 2014 through final design that now includes an accommodation for California High Speed Rail); advanced utility relocations; demolition of the Life Storage building; relocation assistance for more than 300 storage tenants; preconstruction services by a CM/GC contractor: and other required third-party work and associated soft costs.
On January 30, 2026, the California Transportation Commission (CTC) approved State Transportation Improvement Program (STIP) funding allocation of $60.82 million and Transit Intercity Rail Capital Program (TIRCP) funding allocation of $54.39 million for Early Works Packages - William Mead Homes soundwall construction, preconstruction survey, utility relocation, procurement of long-lead materials, and environmental mitigations. In addition to these approved allocations, future project funding is anticipated, including an additional $55.76 million allocation from TIRCP, as well as $123.98 million from Proposition 1A (California High-Speed Rail Bonds), and $13.27 million in Metro local funds.
Discussion
DISCUSSION
Under the CM/GC project delivery method, the project is advanced during Phase 1 activities within the authorized Preconstruction Budget while benefiting from contractor engagement to refine the project, advancing more certainty of construction cost and schedule. While this work with the contractor continues to advance for the full project scope, this requested increase of the Preconstruction Budget is needed to advance critical Early Works Packages and real estate acquisitions.
Since NTP, Metro staff has been working closely with the CM/GC contractor, leveraging contractor design input to advance value engineering opportunities and mitigate risks associated with railroad, utility, and structural interfaces. Some examples of this collaboration with the CM/GC Contractor that result in cost and schedule savings include modifying the location of Abutment 1 to allow it to be installed from the Railyard instead of the El Monte Busway, conducting a pile test in an effort to reduce pile lengths, and optimization of concrete placements for bridge barriers, columns, and retaining walls.
The proposed Preconstruction Budget increase will fund several early work items, such as the construction of a soundwall at William Mead Homes, construction of a new emergency vehicle turnaround at the south end of the existing rail yard, utility relocation work at the south end of the existing rail yard, and temporary track modifications for BNSF, Metrolink, and Amtrak, including the procurement of a signal cabinet, and turnout. The proposed increase will support continued advancement of agreements with BNSF, the City of Vernon, Amtrak and Metrolink; as well as, advancement of real estate acquisitions, and all related soft costs. The funds will also support Board approved Motion 10.1 by Directors Hahn, Dutra, and Solis (refer to Attachment C ), which was approved by the Board on October 16, 2025 to collaborate with BNSF to explore any other alternative solutions for rail storage at the Malabar Yard, as well as continue to collaborate with the City of Vernon, the Vernon Chamber of Commerce, impacted businesses, and community members for design strategies and mitigations that reduce disruptions to local businesses and their Operations.
The project is now ready to begin early work construction by the CM/GC Contractor. The early work construction will allow the project to maintain the schedule while the main construction elements continue to be designed. Staff is seeking approval to increase the Preconstruction Budget to $507.88 million to include $210.06 million for Early Works Packages and related soft costs (refer to Attachment A- Link US Preconstruction Budget, and Attachment B - Funding/Expenditure Plan for the Preconstruction Budget). The requested Early Work Packages are time critical. This includes the procurement of a signal cabinet and rail turnout to accommodate construction of a bridge abutment adjacent to the main line tracks on the West Bank. The signal cabinet and rail turnout will take as much as 18 months to procure. The early work also includes rail construction to accommodate rail modifications and coordination with rail operators to allow for the construction of the bridge abutment adjacent to the main line tracks. Early construction is also critical at the Union Station rail yard. In order to accommodate a bridge abutment at this location, several utilities need to be relocated, and a new emergency vehicle turnaround needs to be constructed at the south end of the existing rail yard. The construction of the sound wall at the William Mead homes is also included as one of the proposed Early Work Packages based on a commitment to construct this sound wall at the beginning of the project.
Given that the project has received Supplemental CEQA and NEPA approval, the proposed Early Work Packages in this Board Action, as well as any future Early Work Packages and Main Construction Work, are eligible for State and Federal Funding.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The Link US project is being planned and designed in accordance with Metro, Southern California Regional Rail Authority (SCRRA), California High-Speed Rail Authority (CHSRA), Caltrans, and City of Los Angeles standards, as well as all applicable state and federal requirements. The recommended Board action will have no detrimental safety impact.
Financial_Impact
FINANCIAL IMPACT
The proposed Preconstruction Budget of $507.88 million is fully funded with $51.67 million in Measure R 3% Commuter Rail funds, $18.73 million in California High Speed Rail planning funds, and $337.57 million in State Transit Intercity Rail Capital Program (TIRCP) funds, $423.34 million in State Proposition 1A/High Speed Rail Bonds, $60.82 million in State Transportation Improvement Program (STIP), $40 million in SCRRA JPA, $5 million in LOSSAN/Amtrak, and $13.27 million in other Metro Local Funds.
Impact to Budget
The sources of funding for the additional $210.06 million for the Project are capital funds, as shown in Attachment B, Link Union Station Project Preconstruction Budget-Expenditures and Funding Plan. These funds are not eligible for bus and rail operations.
Equity_Platform
EQUITY PLATFORM
The Project will improve the quality of life for residents at the LAUS-adjacent William Mead Homes, the first public housing project in the City of Los Angeles constructed in the 1950s and located within a Metro Equity Focus Community. This will be accomplished with the construction of a new sound wall, designed to reduce noise from existing and future increases in train operations.
The increased rail service will make it easier for Metrolink riders to access key destinations, such as jobs, housing, and healthcare appointments, as well as provide access to the greater LA Metro public transportation system at LAUS. The Project will also result in reduced train and idling times-saving as much as 5 minutes for each ride linking the counties of San Diego, Orange, Riverside, San Bernardino, Ventura, San Luis Obispo, and Santa Barbara to LAUS-and fuel savings and emission reductions. Further, it is estimated that the Project will generate 4,500 jobs during construction, resulting in over 200 permanent jobs. In addition, during Early Work and Phase 2 Construction, the Project Labor Agreement (PLA) and the Construction Careers Policy (CCP) will require the CM/GC to hire 40% Targeted Local Workers, 20% Apprentice Workers, and 10% Disadvantaged Workers.
The Diversity and Economic Opportunity Department (DEOD) established a 25% Small Business (with 3% designated for Micro Business (MB)) and a 3% Disabled Veteran Business Enterprise (DVBE) goal, and a separate 10% Disadvantaged Business Enterprise (DBE) goal for Phase 1 for this California High-Speed Rail Authority (“CHSRA”) funded procurement. As a condition of funding, Metro implemented the CHRSA’s Small Business Program and accepted SB and MB certification from the State of California, Department of General Services, as well as Metro-certified SBE firms. Flatiron West, Inc. (CM/GC) made a 22.43% SB commitment, a 3.09% MB commitment, and a 3.66% DVBE commitment for Phase 1 and the current level of participation is 0% SB, 0% MB, and 0% DVBE. While the CM/GC made a DBE commitment, the U.S. Department of Transportation (USDOT) has issued an Interim Final Rule (IFR) that makes changes to the DBE Program, including suspension of goals and enforcement, effective October 3, 2025. As such, the DBE commitment is not a factor in this recommended action. Flatiron contends that payments to the small businesses began in December 2025 and will continue to occur incrementally, as Phase 1 is still in the early stages of the project and once payments are reported, the small business participation will increase.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
Vehicle Miles Traveled (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, this item is expected to contribute to further reductions in VMT. This item supports Metro’s systemwide strategy to reduce VMT through planning and investment activities that will improve and increase rail service, thereby encouraging taking transit, including Metrolink, Amtrak, Metro Rail, High-Speed Rail, Municipal Bus Systems, and High-Speed Ridesharing.
Metro staff has conducted preliminary analysis to show that the net effect of this multi-modal item is to decrease VMT. Using data provided by LOSSAN, SCRRA, and SCAG, it is estimated that this project will result in 299,889,346 additional passenger-miles per year. This will result in an annual reduction in VMT of 239,911,477 per year, or a 679,687 daily VMT reduction.
*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
The Project supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. The proposed run-through tracks would increase regional and intercity rail capacity, reduce train idling at LAUS, enable one-seat rides from Santa Barbara County to San Diego County through LAUS, and accommodate a new high-quality transportation option such as the High-Speed Rail in Southern California.
The project supports Strategic Goal 2: Deliver outstanding trip experiences for all users of the transportation system. The proposed new passenger concourse and the new outdoor plaza (West Plaza) would improve customer experience and satisfaction by enhancing transit and retail amenities at LAUS and improving access to train platforms with new escalators and elevators.
The Project supports Strategic Goal 3: Implement a strategic plan to improve system performance and resilience. The planned improvements-run-through tracks, a new concourse, and upgraded plazas-help LAUS operate more efficiently, make better use of existing infrastructure, and prepare the station for future growth and changing transportation needs.
Lastly, the project supports Strategic Goal 4: Transform LA County through regional collaboration and national leadership. The project requires close collaboration with many local, regional, state, and federal partners including the City of Los Angeles, SCRRA, LOSSAN Authority, Caltrans, CHSRA, The California State Transportation Agency (CalSTA), FRA, and Amtrak.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to move forward with the requested increase to the Preconstruction Budget. This is not recommended. If the increase is not approved, Metro could realize schedule delays and cost increases. Additionally, the committed funding received to date have deadlines for construction. These include Proposition 1A Funding from CHSRA, as well as State Transportation Improvement Program (STIP) and Transit and Intercity Rail Capital Program (TIRCP) funding from the California Transportation Commission.
Next_Steps
NEXT STEPS
After Board approval, staff will work with the CM/GC contractor to finalize pricing for the Early Work Packages and negotiate contract modifications.
Attachments
ATTACHMENTS
Attachment A - Project Preconstruction Budget
Attachment B - Funding/Expenditure Plan for the Preconstruction Budget
Attachment C - Board Motion 10.1
Prepared_by
Prepared by:
Dan Mahgerefteh, Deputy Executive Officer, Regional Rail, (213) 418-3219
Alice Hsu, Deputy Executive Officer, Program Management, (213) 418-3113
Scott McConnell, Executive Officer, Regional Rail, (213) 922-4980
Michael McKenna, Deputy Chief Program Management Officer, (213) 922-4239
Carolina Coppolo, Deputy Chief Vendor/Contract Management Officer (213) 922-4471
Reviewed_By
Reviewed by:
Tim Lindholm, Chief Program Management Officer (213) 922- 7297
