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File #: 2021-0114   
Type: Informational Report Status: Non-Calendar
File created: 3/8/2021 In control: Board of Directors - Regular Board Meeting
On agenda: 4/22/2021 Final action:
Title: CONSIDER: ESTABLISHING a life-of project (LOP) budget for the Airport Metro Connector project in the amount of $898,581,000 consistent with the provisions of the Board-adopted Measure R and Measure M Unified Cost Management Policy (Attachment C).
Sponsors: Construction Committee
Indexes: Airport Metro Connector, Airport Metro Connector Construction (Project), Americans With Disabilities Act, Authorization, Bids, Budget, Bus transportation, City of Los Angeles, Construction, Crenshaw/LAX Transit Corridor Project, Division 16, Elevators, Eminent domain, Escalators, Funding plan, Funding Source, Grant Aid, Green Line Ext To La Airport (Project), Hubs, Informational Report, Kiosks, Land, Landscaping, Los Angeles International Airport, Maintenance, Maintenance facilities, Maintenance of way, Maintenance practices, Measure M, Measure R, Measure R Cost Management Process and Policy, Metro Bike Hub, Metro Crenshaw Line, Metro Exposition Line, Metro Green Line, Metro Rail C Line, Metro Rail E Line, Metro Vision 2028 Plan, Operations and Maintenance, Pedestrians, Plan, Policy analysis, Procurement, Project, Project management, Proposition A, Proposition C, Safety, Safety and security, Security, Station operations, Strategic planning, Surface Transportation Block Grant Program, Testing, Ticket vending machines, Transit boards, Twenty-eight by '28 Initiative, Zoning
Attachments: 1. Attachment A_AMC Renderings - Copy, 2. Attachment B - AMC Funding and Expenditure Plan - Final.pdf, 3. Attachment C - Measure R and Measure M Unified Cost Management Policy Analysis 4.6.21

Meeting_Body

CONSTRUCTION COMMITTEE

APRIL 15, 2021

 

 

Subject

SUBJECT:                     AIRPORT METRO CONNECTOR PROJECT

 

Action

ACTION:                     ADOPT LIFE OF PROJECT BUDGET 

 

Heading

RECOMMENDATION

 

Title

 

CONSIDER:

 

ESTABLISHING a life-of project (LOP) budget for the Airport Metro Connector project in the amount of $898,581,000 consistent with the provisions of the Board-adopted Measure R and Measure M Unified Cost Management Policy (Attachment C).

 

Issue

ISSUE

 

The Airport Metro Connector Project (AMC) will be the ninth station along the Crenshaw/LAX (C/LAX) Line and will connect directly with the Los Angeles World Airports (LAWA) Automated People Mover (APM) and become the key multi-modal gateway to the Metro system from Los Angeles International Airport (LAX). With direct connections between Metro rail, bus and active transportation systems to the APM and LAX, this new transit station will provide a welcoming, secure and convenient connection point that aims to stand as a significant flagship destination in both Metro and the City of Los Angeles transportation networks

 

 

Discussion

DISCUSSION

 

Project Overview

In June 2014, the Board approved adding a new transit station to the C/LAX line at 96th Street to connect the C/LAX line with the LAWA APM. Subsequent Board actions authorized funding and contract actions for design and engineering services and directed the CEO to complete the environmental review and begin the required land acquisition. On January 26, 2017, the Board certified the AMC 96thStreet Transit Station Final EIR. For the federal requirements per the National Environmental Policy Act (NEPA), an environmental memorandum was prepared to document the environmental findings for the AMC 96th Street Transit Station and to support a determination by FTA that the project meets the criteria for a Categorical Exclusion (CE).

 

The AMC project has been designed by Gruen Associates and Grimshaw, in collaboration with the LAWA team developing the APM project. All design documents are now complete, and bids for the construction contract have been received.

The establishment of an LOP Budget for the Project after receiving bids for the construction contract is consistent with the recommendations in the Office of the Inspector General (OIG) Construction Management Best Practices Study Report and lessons learned regarding establishing final budgets, when adequate information (such as the receipt of hard bids) is available. Bids for the project were received on March 11, 2021.  

Project Description

The AMC Project will be centered around a vast circulation hub connecting a new CLAX Rail Station, an expansive 16-bay Bus Plaza, a multi-level active transportation/bike hub, a private vehicle drop-off zone and direct connection to the LAX APM. Within the central hub there will be a full customer service center providing travelers convenient access to purchase monthly passes, pick up and receive assistance with route planning, multiple interactive information kiosks and ticket vending machines (TVM), public toilet facilities beyond the fare paid zone, redundant vertical circulation systems, and commercial space for potential tenants with focus on providing enhanced passenger conveniences. A sculpture by Los Angeles native and internationally renowned artist Glenn Kaino will be included as part of the main AMC hub structure.

The Rail Station portion of the project, integrated into the CLAX Line, will contain the largest Light Rail Platform in the Metro system with two grade separated rail crossings, each with escalators and dual elevators, new swing door faregates, all ADA compliant, to allow for smooth passage with luggage; and full roof coverage over the entire platform.

The Bus Plaza will have 16 separate bus bays, several with articulated bus capacity, with infrastructure to add charging capabilities at all bays. Additionally, the bus plaza will have a separate customer fare center with TVM’s and interactive information kiosks, a central plaza with expansive landscaping and seating; and dedicated public toilet facilities.

The Project will also feature a multi-level bike and active transportation hub with facilities for vendors and direct connection to the multi-use path along Aviation Blvd., a private vehicle drop off zone with dedicated vertical circulation, and a direct connection to the APM platform at the AMC Station, incorporated into a design that will both integrate the APM and AMC Station to create a seamless experience and to stand separately as a significant and singular Metro Transit Station

The project has been designed to achieve a Leadership in Energy and Environmental Design (LEED) Gold rating and includes sustainable features such as over 550,000 kilowatts of solar panels, large native landscaping areas and electric bus charging stations.

Renderings showing key components of the AMC station are included as Attachment A.

Current Status of Work

The project team has completed extensive value engineering, design refinements and evaluation of project delivery methods for the construction scope including soft costs such as design and consultant fees, rail car system integration, real estate acquisition and relocations and hard costs, such as art and fare collections.

Along with value engineering, the team has completed an advanced and extensive constructability review process in order to prevent potential errors, future delays, and cost overruns. Furthermore, selection of a design-bid-build procurement strategy has allowed staff to base the proposed LOP predominantly on final bids already received for the Project.

The development of the project has also required extensive coordination with the CLAX Line and the LAWA projects around and within the AMC Project site. To adapt and incorporate the varying schedule and design components of both projects, the AMC Station was required to separate key preliminary site work and rail systems preparation in an Early Works phase for the project. The design work for this phase was completed in Winter 2020 with a construction contract already awarded to Hensel Phelps Herzog. This Work is scheduled to start in May 2021, initiating the start of the AMC Station project.

The second phase of the AMC Project, the overall design of the final station, has been developed in coordination with this Early Works phase to 100% Design Document completion and has recently received the bids for the construction contract. The award of the construction contract is scheduled for Summer 2021 with start of work expected Fall of 2021.

Additional Project Considerations

Land Acquisition

The Metro Real Estate Department initiated the acquisition process to acquire the Hertz Corporation’s maintenance facility for rental vehicles and shuttle buses (“Hertz Property”) in August 2017.  The Hertz Property, located adjacent to the Metro owned Southwest Yard and CLAX ROW, encompasses 11.1 acres of property bounded by West Arbor Vitae Street to the north, CLAX ROW to the west and Aviation Blvd to the east and south.

The initial offer to acquire the Hertz Property was not accepted and the Metro Board adopted a Resolution of Necessity to acquire the Hertz Property through the eminent domain process on June 28, 2018.  Metro obtained possession of the Hertz Property in July 2019 and Hertz has been relocated. With the recent bankruptcy of Hertz Corporation, the eminent domain action and negotiations have been delayed.  Prior to the bankruptcy, updated appraisals were obtained based on a new date of value of July 2019 and additional funds were deposited totaling $50,000,000. As a result of the updated appraisals by Metro and the owners, additional funds may be necessary in the future based on the increased valuations, the final jury award or settlement discussions. The trial to resolve the valuation issue has been deferred to late 2021 or potentially 2022 due to the limited access to the Courts caused by COVID. 

Operations Plan during Construction

With the scheduled start of the AMC construction in late 2021, adjustments to the public operations of the CLAX Line will be required once it begins, as the rail platform component of the AMC Station will close the portion of the CLAX Line within the project area.

With this understanding, the AMC Team in full coordination with Metro Operations, has implemented three key conditions to support the operations of the CLAX Line during this construction period:

                     The Early Works phase of the Project will install temporary turnbacks, with related rail systems and rail car design adjustments, at the north and south ends of the Project limits to allow for segmented and separate operations of the CLAX Line.

                     Limitation of the Project area within the CLAX ROW has been clearly defined to allow for continuous access and operations of the Southwestern Yard (SWY) rail yard leads to maintain daily rail operations and maintenance throughout the entirety of the construction.

                     Separate scheduling and requirements have been incorporated within the AMC Station construction contract to install the final rail and rail systems and requisite safety barriers before the completion of the rest of the transit station. This will allow for end-to-end CLAX operations after 20 months from the beginning of continuous access to the CLAX ROW to begin the AMC Work. 

The project will make full coordination with Metro Operations the highest priority to mitigate unnecessary interruptions to the CLAX Line testing and operations throughout the construction of the AMC Station Project.

Operations Staffing

Expected heavy use of the AMC Station will require several full-time personnel in the Metro Rail Operations and Facilities Maintenance Department for both the construction and initial operations of the completed Station.

During the early stages of construction, the CLAX Line will be under testing and is expected to begin public operations. Additionally, the AMC Project has been scheduled in separate construction phases to complete the rail station portion of the Project before the completion of the overall Project to allow for the expediting of end-to-end CLAX Operations, allowing rail service to run through the AMC Project area during construction of the remainder of the Project. This critical work on the CLAX ROW and the SWY will require rail operations personnel to work closely in cooperation with the AMC Contractor throughout the Rail Platform construction phase. Specifically, the installation of the utility buildings and the rail station will be intertwined with SWY operations and the rail track and systems network of the CLAX Line.

Once the AMC Station is completed, the vast circulation (12 escalators, 13 elevators), security systems and overall maintenance of the multi-modal hub will require full time maintenance personnel to keep the station secure, clean and convenient throughout its initial operations. Operations will request the required personnel to support the construction phase and ongoing operations in a separate Board action.

 

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

This Board action will have a positive impact on the safety of Metro’s patrons and employees. Of significance, the AMC Station Project will provide safety and security by connecting all modes of transportation through a single central grade separated hub. Additional safety measures include the following:

                     Singular entrance to the main hub from private vehicle drop-off and pedestrian areas

                     New swing door faregates, all ADA compliant, to allow for patrons to easily move through with luggage

                     Dual elevated pedestrian rail crossings to the rail platform

                     All LED lighting throughout entire Transit Station

                     Over 150+ security cameras throughout the Station

                     LAWA and Metro Coordinated safety and security protocols between Los Angeles Police and Fire departments with interagency access to both LAWA and Metro security systems.

 

 

Financial_Impact

FINANCIAL IMPACT

 

Work for AMC has been funded with Project 460303, Airport Metro Connector, and Project 860303, Airport Metro Connector Construction. The FY21 adopted budget notes that Project 460303 had an authorization of up to $58,218,000 and Project 860303 has an authorization of $178,752,000 for a combined total of $234,970,000. This action would establish a Life of Project Budget of $898,581,000.

 

The AMC is included in the November 2016 Measure M Expenditure Plan with an allocation of $581,000,000 in 2015 dollars. Both the Measure M and Measure R ordinances provide a concomitant amount of funding, including planned amounts of State and federal grants. The LOP budget is an increase to the most recent Measure R/M allocation and planned amount of funding, and is subject to the Unified Cost Management Policy (the Policy), which is provided in Attachment C. The Policy recommends trade-offs to identify the funds necessary to meet the cost increase. The Policy analysis recommends the use of Proposition A 35% Rail Development and Proposition C 25% Transit-Related Streets and Highways as these are the most available of the eligible funding sources to address the cost increase. Metro staff will also allocate approximately $100,200,000 of new federal stimulus and existing grants to other Metro projects in order to free a portion of the needed Proposition A 35% and Proposition C 25% funds, which are only eligible for capital expenditures. The federal stimulus funds come from the capital project-only eligible portion of Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) funding received by the State of California.

 

The AMC project has committed funding from Federal revenues, including Surface Transportation Block Grant (STBGP) and Congestion Mitigation& Air Quality Program (CMAQ); State Revenues including Transit and Intercity Rail Capital Program (TIRCP) and Solutions for Congested Corridors Program; and Local Revenues including Measure R - Transit Capital and Measure M - Transit Construction. This Project is currently funded on a fiscal year basis under Project 86303 Airport Metro Connector Construction in Cost Center 8510.

 

A funding plan showing the sources and uses of funding for this project is included as Attachment B.

 

Impact to Budget

The proposed action will not have an impact to the FY21 Annual Budget.  The FY21 Annual Budget has $64,181,598 in Cost Center 8510, Construction Contracts/Procurement, for Project 860303, Airport Metro Connector Construction. This is a multi-year project requiring expenditure in fiscal year increments with the adoption of the Board Authorized Life of Project Budget. It will be the responsibility of the Project Manager and Chief Program Management Officer to budget for this in future fiscal years.

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

Recommendation supports strategic plan goals # 2 “Deliver outstanding trip experiences for all users of the transportation system” and #4 “Transform Los Angeles County through regional collaboration and national leadership.” The AMC Station has from the beginning of the planning and design stages, through continuous and diligent coordination with LAWA and the City of Los Angeles and now, moving forward with the construction has carried these two strategic goals as two of the highest priorities. With this multi-modal transit station providing direct connections between Metro rail, bus, active transportation systems and the APM and LAX, the AMC Station aims to be a cornerstone in the continued growth and transformation of Metro and the City of Los Angeles public transportation networks.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

The Board may choose not to approve the LOP budget for this project. This alternative is not recommended since rejecting this project would jeopardize state funds that are in place, which include Solutions for Congested Corridors and TIRCP funds. Moreover, it would negate any direct connection between LAX and the Metro Rail system.

The Board may elect scope reduction or value engineering to lower costs for this project. Staff does not recommend this alternative as the descoping requires significant design changes and costs and would result in significant negative impacts to the project goals and objectives. The design of the AMC project has been coordinated with the LAX Automated People Mover project and any change to the design will impact the design of the LAWA project. Additionally, this alternative could cause delays to the LAX Automated People Mover project as well as impacts to the C/LAX project end-to-end revenue service dates.

The remaining service alternative option will be to provide costly and traffic dependent bus shuttle service, by both Metro and LAWA, from one of the adjacent Metro Stations into LAX or to one of the new APM transit stations. Additionally, separate areas will need to have property secured, designed and developed for a bus and active transportation terminal.

 

 

Next_Steps

NEXT STEPS

 

Upon Board approval, staff will award the primary construction contract and start construction in Fall 2021. With a roughly 36-42 month schedule of construction, it is estimated that the project will be complete and ready to open for passenger service in late 2024/early 2025. Staff will also execute other contract modifications for procurement and installation of the fare collection equipment and fare gates and for Rail Car Systems Integration.

 

 

Attachments

ATTACHMENTS

 

Attachment A - Project Renderings 

Attachment B - Funding and Expenditure Plan

Attachment C - Measure R and Measure M Unified Cost Management Policy Analysis

 

Prepared_by

Prepared by:                      

 

Paul Whang, Senior Director, Engineering, Program Management, (213) 922-4705;

Rafie Zamani, Deputy Executive Officer, Program Management, (213) 418-3140;

Tim Lindholm, Senior Executive Officer, Capital Projects Program Management

(213) 922 -7297

 

Reviewed_By

Reviewed by:                      

 

 

Bryan Pennington, Interim Chief Program Management Officer, Program Management, (213) 922-7449

Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051