RPVCCA_CC_SR_2013_06_18_10_Metro_Crenshaw_LAX_Transit_ProjectCITY OF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
CITY COUNCIL MEMBERS
MAYOR BROOKS AND COUNCILMAN KNIGHT
JUNE 18, 2013
METRO RECOMMENDED FUNDING PLAN FOR
CRENSHAW/LAX TRANSIT PROJECT
CAROLYN LEHR, CITY MANAGER a9.__
RECOMMENDATION
ADOPT RESOLUTION NO. 2013-_; A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES OPPOSING THE METRO
RECOMMENDED FUNDING PLAN FOR THE CRENSHAW/LAX TRANSIT PROJECT
AND SUPPORTING THE DIRECTOR KNABE AND O'CONNER MOTION.
BACKGROUND
The Crenshaw/LAX Transit Corridor is a north/south corridor that serves the cities of
Los Angeles, Inglewood, Hawthorne and El Segundo, as well as portions of
unincorporated Los Angeles County. The proposed alignment extends 8.5 miles, from
the intersection of Crenshaw and Exposition Boulevards to a connection with the Metro
Green Line at the Aviation/LAX Station. The project provides for connections with the
Los Angeles International Airport (LAX), as well as links to the Metro Green Line, the
Exposition Line and countywide bus network.
DISCUSSION
The solicitation process has been completed by Metro staff. The recommended price
proposal is within Life-of-Project budget, but the current project allocated budget does
not have the normal project contingences for this massive project. A request is being
made to the Metro Board to replenish $160 million to establish adequate contingency
levels.
Following the Metro policy of obtaining funds from the impacted region, the Metro staff
is recommending that the source of additional funds proposed to award the base work
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Metro Recommended Funding for Crenshaw/LAX Transit Project
June 18, 2013
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is from the South Bay subregion's Ramps and Interchanges project; the South Bay's
Green Line Extension to LAX project; existing unobligated Call for Project grants in the
Central Area sub-region; and the Central Area sub-region's Wilshire Bus Rapid Transit
project. This recommended action will directly affect the South Bay's $906 million
Measure R Highway program by reducing the amount available for highway projects,
setting a precedent for altering the intended use of the funds, and obligating future
funding in the current decade.
CONCLUSION
The South Bay Cities Council of Governments (SBCCOG) is working with the other
South Bay cities and Metro Directors Knabe and O'Connor to oppose the current Metro
staff proposal and provide an alternative motion. On June 13, 2013, SBCCOG sent out
a request .for the City Councils of the South Bay cities to approve the attached
resolution for presentation at the June 27, 2013 Metro Board meeting opposing the
Metro recommended funding plan for the Crenshaw/LAX Transit Project and supporting
the Director Knabe and O'Conner motion.
FISCAL IMPACT
Although the fiscal impact to Rancho Palos Verdes is unknown at this time, the Metro
staff's recommended action will directly affect the South Bay's $906 million Measure R
Highway program by reducing the amount available for highway projects. Any City
project's slated to use Measure R funding could potentially be underfunded or unfunded
as a result.
Attachment:
Draft Resolution
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RESOLUTION NO. 2013-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, OPPOSING THE METRO RECOMMENDED FUNDING PLAN FOR THE
CRENSHAW/LAX TRANSIT PROJECT AND SUPPORTING THE DIRECTOR KNABE
AND O'CONNER MOTION
WHEREAS, the Los Angeles County Metropolitan Transportation (Metro) is
considering the award of a design and construction contract for the Crenshaw/LAX
Transit Corridor Project at its June 27, 2013 Board of Directors Meeting; and,
WHEREAS, the Metro staff recommends increasing the life of project budget by
$160 million more than the project's April 2013 Metro Board-adopted life of project
budget: and,
WHEREAS, the Metro Measure R Unified Cost Management Process and Policy
states that project funding shortfalls can be funded by reallocating funds from other
projects within the sub-region(s) served by a project; and,
WHEREAS, the Metro Board will also consider a Measure R Project funding
acceleration policy at its June 27, 2013 meeting that will require Metro to issue bonds
and take out loans guaranteed by Measure R, Proposition A and Proposition C; and,
WHEREAS, the Crenshaw/LAX Transit Corridor Project contract award
recommendation for the June 27, 2013 meeting includes the use of $47.1 million of
Proposition C 25% funds currently allocated to the South Bay Highway Program and
$47.48 million of Measure R funding from the LAX-Metro Airport Connector transit
project, as part of the $160 million to be reallocated from the South Bay and Central
areas to be served by the Crenshaw/LAX Transit Corridor Project; and,
WHEREAS, the application of the April 2011 Metro Board-adopted Cost
Management Process and Policy in this instance jeopardizes the very integrity for which
the flawed policy was designed to protect and sacrifices regional equity by: 1) allowing
project shortfalls to be made up utilizing funding committed to out-year sub-regional
projects and programs, and 2) allowing funding commitments to be rescinded at the
whim of the Metro Board without consultation or concurrence by the affected
subregion(s); and,
WHEREAS, the proposed acceleration policy would reduce the subregions'
access to Measure R funds and require these funds to be spent before 2023, thereby
dramatically increasing the probability that second and third decade Measure R projects
promised to the voters in Measure R, the November 2008 Los Angeles County %-
percent sales tax increase for transportation improvements, will not be built.
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
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Section 1: The City of Rancho Palos Verdes opposes Metro staff
recommendations for items #10 and# 52 on the June 27, 2013 Metro Board Agenda
items.
Section 2: The City of Rancho Palos Verdes opposes the use of South Bay
Highway Program funds and LAX-Crenshaw Connector funds as part of the contract
award recommendation for the Crenshaw/LAX project.
Section 3: The City of Rancho Palos Verdes supports other approaches such as
the proposed Knabe/O'Connor Motion that would fund the South Bay portion of $160
million shortfall.
Section 4: The City of Rancho Palos Verdes supports the O'Connor/Knabe
Motion (Item No. 11) on the Metro Acceleration Policy to protect highway funding from
reallocation to transit prior to 2019.
Section 5: The City of Rancho Palos Verdes supports a collaborative process to
re-visit the flawed Metro Measure R Unified Cost Management Process and Policy with
sufficient time for stakeholder input.
PASSED, APPROVED, and ADOPTED this 18th day of June 2013.
ATTEST:
City Clerk
State of California
County of Los Angeles
City of Rancho Palos Verdes
)
) SS
)
Mayor
I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2013-_, was duly and regularly passed and adopted by the said
City Council at regular meeting thereof held on June 18, 2013.
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