Metro - File #: 2024-0407

• File #: 2024-0407
• Type: Program
• Status: Agenda Ready
• File created: 5/31/2024
• In control: Finance, Budget and Audit Committee
• On agenda: 7/18/2024
• Title: CONSIDER: A. AUTHORIZING AND DELEGATING authority to the Chief Executive Officer (CEO) or their designee to negotiate and execute all necessary agreements and amendments to enter into a direct loan for a not to exceed disbursement amount of $160,950,000 to be repaid with interest between the Los Angeles County Metropolitan Transportation Authority (Metro) and the San Gabriel Valley Council of Governments (SGVCOG) to fund the Alameda Corridor-East (ACE) Project and the I-605/Valley Boulevard Interchange Improvements (I-605/Valley) Project (the Projects). This direct loan advances partial funding on future anticipated, available funding from the Measure M Multiyear Subregional Programs (MSP) for the Projects. This direct loan will replace the $61.1 million direct loan approved at the August 2022 meeting; and B. AUTHORIZING the CEO to amend the FY25 Budget by $31,310,000 to accommodate the cashflow requirements of FY25 for the estimated first-year annual not-to-exceed advance of the di...
• Sponsors: Finance, Budget and Audit Committee
• Indexes: "Hot Spots" Program, Alameda Corridor East, Board approved a Motion, Budget, Budgeting, Construction, Debt, Funding plan, Government funding, Grant Aid, Highway Efficiency Program, I-605, Interchanges, Measure M, Measure M Multi-Year Subregional Program, Montebello, Motion / Motion Response, Payment, Program, Project, Ridesourcing, Safety, San Gabriel, San Gabriel Valley Council of Governments, Subregional Equity Program, Union Pacific Railroad
• Related files: 2021-0767, 2022-0470

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 18, 2024

Subject
SUBJECT: SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS' LOCAL CONTRIBUTION AND DIRECT LOAN TO ALAMEDA CORRIDOR EAST AND I-605/VALLEY BOULEVARD INTERCHANGE IMPROVEMENTS PROJECTS

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
CONSIDER:

A. AUTHORIZING AND DELEGATING authority to the Chief Executive Officer (CEO) or their designee to negotiate and execute all necessary agreements and amendments to enter into a direct loan for a not to exceed disbursement amount of $160,950,000 to be repaid with interest between the Los Angeles County Metropolitan Transportation Authority (Metro) and the San Gabriel Valley Council of Governments (SGVCOG) to fund the Alameda Corridor-East (ACE) Project and the I-605/Valley Boulevard Interchange Improvements (I-605/Valley) Project (the Projects). This direct loan advances partial funding on future anticipated, available funding from the Measure M Multiyear Subregional Programs (MSP) for the Projects. This direct loan will replace the $61.1 million direct loan approved at the August 2022 meeting; and

B. AUTHORIZING the CEO to amend the FY25 Budget by $31,310,000 to accommodate the cashflow requirements of FY25 for the estimated first-year annual not-to-exceed advance of the direct-loan.

Issue
ISSUE

The SGVCOG is seeking to fund the Projects, which include the final five rail-roadway crossings along the ACE Trade Corridor (identified as part of the ACE Phase II Program) and the I-605/Valley Project. Metro has prioritized I-605/Valley out of the other I-605 Hot Spots Program by leading the design phase of work and securing a $33.57 million Trade Corridor Enhancement Program (TCEP) award to support construction. Cost increases associated with coordinating improvements and construction safety parameters with the Union Pacific Railroad, the increasing cost of labor and materials, and a challenging project bidding environment have created a...