Metro - File #: 2023-0316

• File #: 2023-0316
• Type: Budget
• Status: Passed
• File created: 4/28/2023
• In control: Construction Committee
• On agenda: 7/20/2023
• Final action: 7/27/2023
• Title: AMEND the Life-of-Project (LOP) budget for the Westside Purple Line Extension Section 2 Project by $134,000,000, from $2,440,969,299 to $2,574,969,299, using the fund sources as summarized in Attachment A and consistent with the provisions of the Board-adopted Measure R and Measure M Unified Cost Management Policy (Attachment B).
• Indexes: Board approved Life-of-Project Budget, Budget, Budgeting, Century City, City of Los Angeles, Construction, Construction completed, Contractors, Contracts, Federal Transit Administration, Full Funding Grant Agreement, Funding plan, Measure R, Measure R and Measure M Unified Cost Management Policy, Metro Rail D Line, Metro Vision 2028 Plan, Plan, Policy, Policy analysis, Professional Services, Program Management, Project, Project management, Twenty-eight by '28 Initiative, Westside Cities subregion, Westside Subway Extension/Purple Line Extension Phase 1, Westside Subway Extension/Purple Line Extension Phase 2, Westside/Central Service Sector
• Related files: 2023-0608

Date	Action By	Action	Result
7/27/2023	Board of Directors - Regular Board Meeting

Meeting_Body
CONSTRUCTION COMMITTEE
JULY 20, 2023

Subject
SUBJECT: WESTSIDE PURPLE LINE EXTENSION SECTION 2

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
AMEND the Life-of-Project (LOP) budget for the Westside Purple Line Extension Section 2 Project by $134,000,000, from $2,440,969,299 to $2,574,969,299, using the fund sources as summarized in Attachment A and consistent with the provisions of the Board-adopted Measure R and Measure M Unified Cost Management Policy (Attachment B).

Issue
ISSUE

The Westside Purple Line Extension Section 2 Project (Project) is in its sixth year of construction and is 58% complete as of May 2023. To date, the Project has experienced unexpected conditions and additional requirements, resulting in a drawdown of Contingency to a level that Metro staff and the Federal Transit Administration (FTA) now believe is insufficient to address the remaining risks through the completion of the Project.

As a result of the cost contingency drawdowns detailed below, this Board Report requests an LOP budget increase of $134 million, to replenish the Project's contingency and fund future impacts to the Project. This request assumes the most favorable outcome for current Project issues and risks.


Background
BACKGROUND

The Project is the second of three sections of the nine-mile Purple Line Extension. It ranges from the future Wilshire/La Cienega Station that is part of the Section 1 Project to Century City. The Project is located entirely underground, primarily following Wilshire Boulevard, and includes the design and construction of approximately 2.59 miles of double-track heavy rail subway and two new stations, as well as the purchase of 20 heavy rail vehicles. The Wilshire/Rodeo Station is within the jurisdiction of City of Beverly Hills, and the Century City Constellation Station is within the jurisdiction of City of Los Angeles.

On January 26, 2017, the Metro Board approved the Life of Project (LOP) Bu...