Meeting_Body
Crenshaw Project Corporation
One Gateway Plaza
Los Angeles, CA 90012
CRENSHAW PROJECT CORPORATION BOARD MEETING
DECEMBER 3, 2020
Subject
SUBJECT: TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT (TIFIA) LOAN ADMINISTRATION ACTIVITIES
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE status report on Crenshaw Project Corporation (CPC) Transportation Infrastructure and Innovation Act (TIFIA) Loan administration activities during the calendar year 2020.
Issue
ISSUE
The Crenshaw Project Corporation was formed in 2012 to act as the TIFIA Loan conduit borrower and the Transportation Investment Generating Economic Recovery (TIGER) II TIFIA Payment grant sub-recipient for the Crenshaw/LAX Transit Corridor Project (Crenshaw/LAX).
This report provides an update to the Board about CPC administrative actions taken pursuant to the loan agreement since the last update at the CPC Meeting held December 5, 2019. As of August 25, 2016, the CPC had drawn all of the $545.9 million TIFIA Loan available to the Crenshaw/LAX Project. As of August 27, 2020, the TIFIA loan was paid off, in full.
Background
BACKGROUND
The Crenshaw Project Corporation (CPC) reports to the Board annually the loan administrative activities that have taken place during the current calendar year.
Discussion
DISCUSSION
Subsequent to the CPC Meeting held December 5, 2019 staff has completed the following actions in 2020 to administer the TIFIA Loan:
• Obtained annual credit rating;
• Paid the annual TIFIA Lender Loan Servicing Fee;
• Submitted to TIFIA:
o Reports and presentations material sent to rating agencies for rating on any indebtedness secured by Proposition A, Proposition C, and Measure R sales taxes and General Revenues;
o Preliminary Official Statements and Official Statements filed for all LACMTA bond issuances;
o Unaudited Quarterly Financial Statements of LACMTA and CPC;
o Audited Annual Financial Statements of CPC;
o LACMTA Consolidated Annual Financial Report for the period ended June 30, 2019;
o Monthly Construction Progress Reports;
o Monthly FTA Project Management Oversight Reports;
o Quarterly List of Approved Contract Modifications for Design-Build Contractor in addition to uploading all approved contract modifications to a Metro FTP site that TIFIA staff has access to;
o Budget Change Notification.
• May 28, 2020, the Board adopted a resolution authorizing the prepayment of the TIFIA Loan and termination of the TIFIA Loan Agreement and related documents;
• Successfully refinanced the TIFIA Loan to reduce interest costs. As of August 27, 2020, the TIFIA loan was paid off, in full;
• Submitted a request to amend Revenue Service Date to reflect a recent schedule change. The request was accepted in concept, but then deemed unnecessary when the TIFIA Loan was refinanced.
Financial_Impact
FINANCIAL IMPACT
Actual expenditures in FY20 for CPC TIFIA Loan activities totaled $22,240.00 to pay for the United States Department of Transportation annual fee, Trustee Fees, and accounting fees. These activities are included in the FY21 proposed CPC Budget at an estimated cost of $28,680.00.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Recommendation supports the following Metro Strategic Plan Goal(s):
Goal #5: Provide responsive, accountable, and trustworthy governance within the Metro organization.
Next_Steps
NEXT STEPS
Staff will continue to take all actions required of the borrower under the Crenshaw/LAX Project TIFIA Loan Agreement and to provide annual updates to the CPC Board. Additionally, staff will return to the Board in the event any action is required for CPC.
Attachments
ATTACHMENTS
Attachment A - Crenshaw/LAX Project Funding Table
Prepared_by
Prepared by:
Emma Nogales, Manager, Transportation Planning (213) 418-3454
Cosette Stark, DEO, Countywide Planning & Development, (213) 922-2822
Matthew Wingert, Senior Financial Analyst, Treasury, (213) 922-2553
Rodney Johnson, Senior Director, Finance, Treasury, (213) 922-3417
Donna Mills, Treasurer (213) 922-4047
Reviewed_By
Reviewed by:
Nalini Ahuja, Chief Financial Officer (213) 922-3088
