Metro - File #: 2019-0850

• File #: 2019-0850
• Type: Agreement
• Status: Consent Calendar
• File created: 11/19/2019
• In control: Board of Directors - Regular Board Meeting
• On agenda: 1/23/2020
• Title: AUTHORIZE the CEO to amend the ACE funding agreement to increase Metro's contribution by $15,000,000 (5.5% increase to the 2007 amount of $274,323,220) for a new total amount of $289,323,220 and program $19,453,420, which includes previously committed funding. Metro will not participate in any future project cost increases or overruns.
• Sponsors: Planning and Programming Committee
• Indexes: Air quality, Alameda Corridor East, Budgeting, California Transportation Commission, Construction, Funding plan, Grade separations, Measure M, Measure R, Measure R and Measure M Unified Cost Management Policy, Policy, Program, Project, Prop 1b - Highway and Port Safety and Air Quality Bond Act, Proposition A, Quality of life, Safety, Safety vehicles, San Gabriel Valley Council of Governments, Strategic planning, Union Pacific Railroad, Vehicle safety

Date	Action By	Action	Result
1/23/2020	Board of Directors - Regular Board Meeting
1/15/2020	Planning and Programming Committee

Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
JANUARY 15, 2020

Subject
SUBJECT: ALAMEDA CORRIDOR-EAST (ACE) PROGRAM FUNDING PLAN UPDATE

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
AUTHORIZE the CEO to amend the ACE funding agreement to increase Metro's contribution by $15,000,000 (5.5% increase to the 2007 amount of $274,323,220) for a new total amount of $289,323,220 and program $19,453,420, which includes previously committed funding. Metro will not participate in any future project cost increases or overruns.

Issue
ISSUE

The San Gabriel Valley Council of Governments (SGVCOG) plans to seek a programming of State Prop 1B funds in January 2020 and an allocation of SB1 Trade Corridor Enhancement Program (TCEP) funds in June 2020 from the California Transportation Commission (CTC) for the two final ACE grade separations. To do so, the SGVCOG needs to demonstrate that 1) there is a 1:1 match for the Prop 1B funds; and 2) both projects are fully funded and identify all funding sources by March 2020 for the TCEP funds. Metro's contribution to the ACE Project (Project), which has historically equaled 17 percent of the total Project cost, has been an integral element of the local funding for delivering the Project.? The Metro Board most recently approved a revised Metro 17 percent contribution in November 2007 and since then various factors, including cost escalation for right-of-way and capital construction over the last decade, and scope changes have increased the total cost.

With a Board adoption of the Measure R and Measure M Cost Management Policy (Policy) in July 2018, and given the Project receives Measure R funds, staff applied the Policy to evaluate the cost increase and potential strategies available to close the funding gap. As such, Metro Board approval of the revised Project cost and associated Metro contribution amount is needed to address this cost increase and demonstrate a fully funded plan for the two pro...