Metro - File #: 2022-0470

• File #: 2022-0470
• Type: Program
• Status: Passed
• File created: 7/12/2022
• In control: Board of Directors - Regular Board Meeting
• On agenda: 8/25/2022
• Final action: 8/25/2022
• Title: AUTHORIZE and delegate authority to the Chief Executive Officer (CEO) or their designee to negotiate and execute all necessary agreements to enter into a direct loan of $61.1 million, current estimate, between the Los Angeles County Metropolitan Authority (Metro) and the San Gabriel Valley Council of Governments (SGVCOG). The loan advances partial funding for the Montebello Corridor Project that has a total project cost of $216.2 million.
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Active Transportation Program, Alameda Corridor East, Board approved a Motion, Budgeting, Bus transportation, California Transportation Commission, Complete streets, Construction, Debt, First/Last Mile, Funding plan, Gateway Cities subregion, Grade separations, Grant Aid, Highway Efficiency Program, Measure M, Montebello, Motion / Motion Response, Payment, Program, Project, Ridesourcing, Safety, San Gabriel, San Gabriel Valley Council of Governments, Transportation Improvement Program
• Related files: 2021-0767, 2022-0653

Date	Action By	Action	Result
8/25/2022	Board of Directors - Regular Board Meeting
8/17/2022	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET & AUDIT COMMITTEE
AUGUST 17, 2022

Subject
SUBJECT: SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS' LOCAL CONTRIBUTION AND DIRECT LOAN TO ALAMEDA CORRIDOR EAST - MONTEBELLO CORRIDOR PROJECT

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
AUTHORIZE and delegate authority to the Chief Executive Officer (CEO) or their designee to negotiate and execute all necessary agreements to enter into a direct loan of $61.1 million, current estimate, between the Los Angeles County Metropolitan Authority (Metro) and the San Gabriel Valley Council of Governments (SGVCOG). The loan advances partial funding for the Montebello Corridor Project that has a total project cost of $216.2 million.

Issue
ISSUE

The SGVCOG is seeking to fund the Montebello Corridor Project, which includes the construction of an underpass on Montebello Boulevard ("Grade Separation Project") and at-grade safety improvements at Vail Avenue, Greenwood Avenue and Maple Avenue ("At-Grade Improvements") along the Alameda Corridor-East ("ACE") Trade Corridor. Cost increases associated with the Grade Separation Project have created a potential funding shortfall that could jeopardize the timely allocation of state grant funding awarded to the Grade Separation Project by the California Transportation Commission ("CTC"). The state has requested that the SGVCOG identify local match funds to allow the state to "allocate" the funds and avoid relinquishing the state grant funding.

Background
BACKGROUND

The SGVCOG established the ACE Construction Authority in 1998 to provide direction and oversight of the ACE Project, which includes a series of rail-highway grade separation and at-grade safety improvement projects, to mitigate the impacts of significant increases in freight rail traffic on over 70 miles of mainline railroad in the San Gabriel Valley of Los Angeles County. In the same year, Metro and SGVCOG entered into a funding agreement to support the ACE Project...