Metro - File #: 2024-0452

• File #: 2024-0452
• Type: Informational Report
• Status: Agenda Ready
• File created: 6/21/2024
• In control: Executive Management Committee
• On agenda: 7/18/2024
• Title: RECEIVE AND FILE report on the Southeast Gateway Line P3 Assessment Business Case (Attachment A).
• Indexes: Artesia, Bellflower, Bids, City of Los Angeles, Construction, Contractors, Customer service, Design build, Downtown Los Angeles, Financial analysis, Gateway Cities (Southeast LA County) Service Sector, Gateway Cities subregion, Informational Report, Labor, Light rail transit, Los Angeles Union Station, Maintenance, Maintenance practices, Metro Rail A Line, Metro Rail C Line, Metro Vision 2028 Plan, Mitigation, Operations and Maintenance, Partnerships, Payment, Procurement, Project, Project delivery, Public private partnerships, Qualitative analysis, Quantitative analysis, Safety and security, State Of Good Repair, Strategic planning, Transfers, Unsolicited Proposal Policy, Vehicle maintenance, West Santa Ana Branch Transit Corridor (WSAB) Project

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
JULY 18, 2024

Subject
SUBJECT: SOUTHEAST GATEWAY LINE P3 ASSESSMENT UPDATE

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE report on the Southeast Gateway Line P3 Assessment Business Case (Attachment A).

Issue
ISSUE

Metro conducted a Public-Private Partnership (P3) Assessment of the Southeast Gateway Line (SGL) (formerly West Santa Ana Branch) Project (Project) to determine if Metro can benefit from advancing a P3 delivery model for the Project. A qualitative assessment, risk analysis, and Value for Money (VfM) were developed to form the overall P3 Business Case. The P3 Business Case is a comprehensive approach utilized as a best practice worldwide by public agencies for major capital investments to identify, assess, and make a determination on the appropriate procurement option for a project that aligns with project objectives. The P3 Business Case has concluded a P3 delivery is not the right approach for the Project based on the relatively low Value for Money (VfM) cost savings opportunity compared to the added risks, interfaces, and challenges that would be introduced under a P3 model.

Background
BACKGROUND

In 2016, Metro received two Unsolicited Proposals suggesting P3 delivery approaches were viable for the Project. In seeking to improve service to advance innovative delivery alternatives for the 19+ miles from DTLA to the Los Angeles/Orange County line, Metro decided to further explore options for project delivery, including the potential for a P3 delivery. Metro issued a P3 Technical Bench contract task order in February 2018 and a follow-up one in March 2022 to a team led by Sperry Capital to assess the potential benefits of advancing a P3 delivery model for the Project.

In January 2022, the Board selected the Locally Preferred Alternative (LPA) for the Project. This led to the advancement of a 14.5-mile LRT line with nine (9) stations, from a northern termin...