Meeting_Body
CONSTRUCTION COMMITTEE
OCTOBER 23, 2024
Subject
SUBJECT: GOLD LINE FOOTHILL EXTENSION PHASE 2B2
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE execution of Amendment No. 4 to the Funding Agreement between the Metro Gold Line Foothill Extension Construction Authority ("Authority") and the Los Angeles County Metropolitan Transportation Authority ("Metro") to reflect the allocation of $798,000,000 of the California State Transportation Agency (“CalSTA”) Transit and Intercity Rail Capital Program (“TIRCP”) formula funding authorized by Senate Bill 125 (“SB125 Funds”).
Issue
ISSUE
The Authority is responsible for the design and construction of the Gold Line Foothill Extension Phase 2B2 Project ("Project”), a proposed extension of the Metro A Line from Pomona to Montclair, which will directly serve two counties. At its December 2022 meeting, the Board prioritized the ranking of projects for state discretionary funding and identified a need for $798 million for the Los Angeles County portion of the Project. Funding for the Project in San Bernardino County is to be provided by the San Bernardino County Transportation Authority (“SBCTA”). Upon completion of the Project, the Construction Authority is to handover the Project to Metro to operate and maintain. Responsibilities and guidelines for allocation of the funds and the specific commitments by the Authority and Metro are established by a Funding Agreement and a Master Cooperative Agreement (MCA) between the two agencies.
The Authority’s procurement process for Phase 2B2 to seek a potential Design-Build Contractor for the design and construction of the Project is ongoing, and an amendment to the Funding Agreement is needed to document the allocation of the award of SB 125 Funds to Metro for this Project.
Background
BACKGROUND
Los Angeles County voters overwhelmingly approved Measure R (2008) and M (2016) to provide a significant source of local funding to support the delivery of a transformative, multimodal set of transportation projects to improve mobility, decrease air pollution, and increase the quality of life for all 10 million county residents. These local sales tax measures were designed to provide local match to leverage significant state and federal funds to fully fund and implement the priority projects found in their respective expenditure plans.
The Metro Gold Line Foothill Extension Phase 2B project extends 12.3 miles from Glendora to Montclair and includes six stations. The overall Phase 2B project is divided into two sections: Phase 2B1 extends from Glendora to Pomona, and Phase 2B2 (the Project) extends from Pomona to Montclair.
The Project includes stations and parking facilities in the two cities along the alignment and shares right of way with Southern California Regional Rail Authority (Metrolink) and the Burlington Northern Santa Fe (BNSF) freight line. A portion of the project extends approximately 1.5 miles into San Bernardino County, terminating at the Montclair Station.
At its July 2019 meeting, the Metro Board approved additional funding of $126,000,000 for the project to Pomona, making the total Metro contribution $1,531,667,000. This amount includes a $290,200,000 TIRCP grant award, of which $41,000,000 was ultimately withheld by the State of California due to the reduction of the project scope at the time to terminate in Pomona. Metro anticipates the $41,000,000 will be available for use on the Project, as the Authority and Metro intend to revive the original project scope, including construction to Montclair.
In June 2022, the State approved AB 180, which appropriated $3.63 billion for the Transit and Intercity Rail Capital Program (TIRCP). In November 2022, the State targeted $900 million to $1.35 billion for existing TIRCP projects in Southern California through a competitive TIRCP Cycle 6 process. Metro applied for TIRCP Cycle 6, requesting funds for the East San Fernando Valley LRT, A Line/Gold Line to Montclair (the Project), and the Southeast Gateway Line. Metro received $600 million in funding only for the East San Fernando Valley LRT.
The fiscal year 2022-23 (FY23) State budget process also included SB 198, which identified $4 billion of formula funding for transportation projects statewide that would be funded in FY24 and FY25. In March 2023, the Metro Board reaffirmed that the Project and the Southeast Gateway Line were the first and second priorities for the SB 198 funds, respectively. The State enacted SB 125 in July 2023, which respectively identified $495.65 million in FY24 and $499.9 million in FY25 for Metro.
In December 2023, Metro submitted a required “allocation package” to the State, formally requesting $798,000,000 for the Project (presuming $41,000,000 of TIRCP remaining for the project from Pomona to Montclair would be used entirely for costs in San Bernardino County as described in Amendment No. 3 of the Agreement). The State approved Metro’s allocation package in July 2024 and allocated $798,000,000 to the Project (the “SB125 Funds”)
Discussion
DISCUSSION
In November 2022, the Authority informed Metro that the estimated cost of the Project was $878,000,000, with $798,000,000 attributable to costs in Los Angeles County and $80,000,000 to costs in San Bernardino County. As of October 2024, Metro has been allocated and received $498,650,905 of the SB125 Funds; Metro has also been allocated and has not yet received an additional $299,349,095 of the SB125 Funds. Metro anticipates the $41,000,000 that was awarded to Metro in 2018 and subsequently withheld when the project extended only to Pomona will be allocated from CalSTA pursuant to a 2018 TIRCP grant for use on the Project. Due to the funding made available by SB 198 and the Metro Board action to prioritize the funding for the Project, the Authority initiated a procurement for a design build contractor. The Authority issued a request for qualifications for the design build contractor in March 2024 and shortlisted one contractor to submit a response to the Authority’s Request for Proposals in July 2024. The Authority is requesting the execution of Amendment No. 4 to demonstrate the financial commitment for the design build contract. The Authority expects to receive a firm, fixed price proposal from its design build contractor in early 2025. The draft Fourth Amendment to the Funding agreement is included as Attachment A, a project funding matrix is included as Attachment B, the expenditure plan is included as Attachment C, and the Scope of Work is included as Attachment D.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
There is no safety impact for the Foothill Extension as a result of this action.
Financial_Impact
FINANCIAL IMPACT
The recommendation to approve the amendment to the Funding Agreement will document the Metro Board's action to allocate the SB125 Funds to the Los Angeles County portion of the Project. Staff will return to the Board upon the Authority’s receipt of a design build price proposal and request a FY25 Budget amendment, an LOP for the Project, and amendments to the agreements with SBCTA. Since this is a multi-year project, the Project Manager, Cost Center Manager and Chief Program Management Officer is responsible for budgeting for future project costs.
Equity_Platform
EQUITY PLATFORM
By having affordable transportation options, the population along the project corridor can access the job opportunities within the San Gabriel Valley and Los Angeles County and beyond. Twenty five percent (25%) of the project corridor is within Equity Focus Communities (EFCs) such as Azusa and Pomona. The Project will increase access for EFCs along the corridor that use the Metro transit system to access housing, jobs, educational, medical and entertainment needs.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
This Board Action is related to the Metro Strategic Plan by updating the project Funding Agreement and providing needed TIRCP grant funds authorized by SB 125 to a portion of the Gold Line Foothill Extension Phase 2B2 project.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may decide to forego amending the Funding Agreement, however this would be contrary to previous Metro Board actions and priorities. Staff recommendation is to proceed with the Amendment in order to assure grant funds are accounted for as a requirement of the Funding Agreement, between Metro and the Authority.
Next_Steps
NEXT STEPS
Upon Board approval, the terms of the Funding Agreement Amendment will be finalized and will be circulated for execution.
Attachments
ATTACHMENTS
Attachment A - DRAFT Project Funding Agreement Amendment No. 4
Attachment B - Project Funding
Attachment C - Expenditure Plan
Attachment D - Scope of Work
Prepared_by
Prepared by: Kavita Mehta, Executive Officer, Program Management (213) 922-4921
Craig Hoshijima, Executive Officer, Countywide Planning & Development (213) 547-4290
922-
Sameh Ghaly, Deputy Chief Program Management Officer (213) 418-3369
Reviewed_By
Reviewed by:
Tim Lindholm, Chief Program Management Officer (213) 922-7297
