Meeting_Body
CONSTRUCTION COMMITTEE
OCTOBER 23, 2024
Subject
SUBJECT: REGIONAL CONNECTOR PROJECT CLOSE-OUT
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
INCREASE the Life-of-Project (LOP) budget for the Regional Connector Transit Corridor Project (Project) by $39,000,000 from $1,755,840,570 to $1,794,840,570 to fully resolve claims and complete the close out the Project.
Issue
ISSUE
The Project is a 1.9-mile underground light rail transit subway in Downtown Los Angeles connecting the A, E, and L Lines of Metro's light rail transit system. The Project was placed into Revenue Service on June 23, 2023, after over a decade of planning, design, construction, testing, and start-up. The Board Report requests a LOP budget increase to address a series of unresolved request for changes (RFCs). This LOP budget increase encompasses a settlement of a comprehensive claim submitted by the design/build Contractor, Regional Connector Constructors (RCC), which fully resolves all outstanding changes, and closes out the Project.
Background
BACKGROUND
The Regional Connector FFGA (Fully Funded Grant Agreement) was originally executed in February 2014 with a budget of $1,402,932,490, a Revenue Service Date of May 29, 2021, and a maximum Federal Section 5309 New Starts Financial Contribution of $669,900,000.
As reported to the Board previously, from the outset, the Project experienced budgetary pressures due to a variety of causes. These include minimal initial contingency funding for significant project risks, insufficient funding for the professional, agency, and services, increased costs due to differing site conditions related to utility relocation, cost increases from repeated litigation-related impacts and delays, cost increases due to longer than anticipated durations for plan and permit approvals, and the resultant schedule impacts and mitigation expenses from all these factors.
By virtue of deliberate and measured budget increase...
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