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File #: 2017-0343   
Type: Project Status: Passed
File created: 5/12/2017 In control: Construction Committee
On agenda: 6/15/2017 Final action: 6/22/2017
Title: CONSIDER: A. APPROVING a Life-of-Project (LOP) budget decrease in the amount of $26,967,000 for the Gold Line Foothill Extension Phase 2A Project and update the LOP to $714,033,000; and B. AUTHORIZE allocation of $26,967,000 of available non-federal funds from Gold Line Foothill Extension Phase 2A to Gold Line Foothill Extension Phase 2B
Sponsors: Construction Committee
Indexes: Accounting, Azusa, Budget, Budgeting, Claremont, Construction, Construction completed, Foothill Gold Line Construction Authority, Gold Line Foothill Extension (Project), Gold Line Foothill Extension 2A, Gold Line Foothill Extension 2B, Long range planning, Long Range Transportation Plan, Low-Income Fare is Easy (LIFE), Measure R, Metro Center Street Project, Metro Gold Line, Metro Rail L Line, Project
Attachments: 1. Foothill Attachment A Cash Flow for Decrease LOP 051017
Meeting_Body
CONSTRUCTION COMMITTEE
JUNE 15, 2017

Subject
SUBJECT: GOLD LINE FOOTHILL EXTENSION PHASE 2A REDUCTION IN LIFE OF PROJECT BUDGET

Action
ACTION: REDUCE LIFE OF PROJECT BUDGET


Heading
RECOMMENDATION

Title
CONSIDER:

A. APPROVING a Life-of-Project (LOP) budget decrease in the amount of $26,967,000 for the Gold Line Foothill Extension Phase 2A Project and update the LOP to $714,033,000; and

B. AUTHORIZE allocation of $26,967,000 of available non-federal funds from Gold Line Foothill Extension Phase 2A to Gold Line Foothill Extension Phase 2B

Issue
ISSUE

Decrease Life-of-Project Budget

The Foothill Extension Phase 2A Funding Agreement allowed for acceleration of the Gold Line Foothill Extension Phase 2A project relative to the schedule identified in the Long Range Transportation Plan (LRTP) and the charging of $27.4 million of interest due to that acceleration. The $27.4 million of interest was included in the Life of Project Budget, raising the total Foothill Extension Phase 2A Life of Project Budget to $741million.
Subsequent to increasing the Foothill Extension Phase 2A LOP by $27.4 million to pay for interest due to acceleration, construction of the project proceeded on a non-accelerated schedule relative to the Long Range Transportation Plan, and only minimal interest attributable to acceleration was required, leaving a substantial portion of the $27.4 million interest budget in place.

This Board Action requests reducing the Foothill Extension Phase 2A LOP by the amount left over and unused for interest due to acceleration and allocating those funds to the next Phase (2B) of the Foothill Extension from Azusa to Claremont.

BACKGROUND
At the March, 2011 Los Angeles Metro Regular Board Meeting the Board approved allocation of $27.4 million for the Gold Line Foothill Extension Phase 2A Project to cover the estimated interest cost to meet a forecasted accelerated schedule.

Construction of the project was completed in Septembe...

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