Metro - File #: 2019-0224

• File #: 2019-0224
• Type: Informational Report
• Status: Agenda Ready
• File created: 4/5/2019
• In control: Construction Committee
• On agenda: 5/16/2019
• Title: RECEIVE AND FILE status report on financial forecast to deliver the Twenty-Eight by '28 Initiative.
• Sponsors: Construction Committee, Executive Management Committee
• Indexes: Budgeting, C Line (Green) Extension to Torrance, Capital Project, Capital Project Funds, Congestion pricing, Construction, Construction engineering, Debt, Funding plan, Grant Aid, Informational Report, Local Returns, Local transportation, Long Range Transportation Plan, Measure M, Measure R, Metro Gold Line, Metro Gold Line Eastside Extension, Metro Green Line, Metro Rail C Line, Metro Rail E Line, Metro Rail L Line, Metro Vision 2028 Plan, Motion / Motion Response, Olympic games, Plan, Project, Project delivery, Public private partnerships, Revenue Service, Ridesourcing, Twenty-eight by '28 Initiative
• Related files: 2019-0108, 2019-0454

Meeting_Body
CONSTRUCTION COMMITTEE
EXECUTIVE MANAGEMENT COMMITTEE
MAY 16, 2019

Subject
SUBJECT: STATUS REPORT ON FINANCIAL FORECAST TO DELIVER TWENTY-EIGHT BY '28

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE status report on financial forecast to deliver the Twenty-Eight by '28 Initiative.

Issue
ISSUE

This item is a status report in response to a Board request (Motion 32.4, #2019-0108) during the Board meeting on February 2019 regarding the financial forecast, use of alternative public and private financing, and constructability analysis relating to the Twenty-Eight by '28 Initiative. Metro staff has initiated development of the funding plans for the pillar projects identified in Motion 32.4 per Board direction. Based on current funding and financing assumptions the acceleration of the pillar projects will require funding for capital, debt service, and operations much sooner than currently planned and will cause a funding shortfall unless this funding gap is addressed with new revenues, revenues diverted from other Metro uses, or the deferral of projects. The pillar projects could be funded on an accelerated schedule if a significant amount of new sources are implemented, including, but not limited to, new federal funding, tax-credit bonds, and new local revenues like transportation network company (TNC) fees. Metro can facilitate this by seeking the creation of new funding sources that could ultimately accelerate the pillar projects, and be incorporated in future funding plans.

Background
BACKGROUND

Motion 32.4 requests a report on a financial forecast that prioritizes the following four "pillar projects"; assumes public private partnership (P3) efficiencies but not use of local return revenues; public and private financing not in Metro's existing "toolbox"; and a constructability analysis of the four pillar projects that includes scope, costs, risks, use of alternative modes, and timelines.

Pillar Pro...