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City Council Report

 

City Council Meeting: January 24, 2012

Agenda Item:  3-Q  

 

To:               Mayor and City Council 

 

From:           Kathryn Vernez, Deputy City Manager for Special Projects

Martin Pastucha, Director of Public Works

David Martin, Director of Planning & Community Development

                   

Subject:        Expo Light Rail 3% Local Match and Betterment Funding Agreements at Downtown/4th Street, Memorial Park/17th Street, and Bergamot/26th Street Stations.

 

Recommended Action

Staff recommends that the City Council:

1.     Authorize the City Manager to negotiate and execute an agreement with the Exposition Metro Line Construction Authority for a lump sum payment of $16,500,000 for the required 3% local match.

 

2.     Authorize the City Manager to negotiate and execute such agreements, as may be appropriate, not-to-exceed $8,850,000 with the Exposition Metro Line Construction Authority to perform engineering services and construction of betterments at the Downtown/4th Street Station.

 

3.     Authorize budget changes and appropriations as outlined in the Financial Impact and Budget Actions Section of this report.

 

4.     Authorize the Director of Public Works to issue any necessary change orders to complete additional work within budget authority.

 

Executive Summary

This report recommends actions related to the development of light rail in Santa Monica, specifically an agreement for a lump sum payment to Exposition Metro Line Construction Authority for the required 3% local match and an agreement for engineering and construction of betterments at the Downtown/4th Street Station of a not-to-exceed amount of $8,850,000, and related appropriations. Council authorization is sought to revise the funding source for the betterments at Memorial Park/17th Street and Bergamot/26th Street Stations and for preliminary engineering for the Downtown 4th Street Station. Timely agreements on City-requested betterments are essential to avoid impacting the project timeline and schedule as well as avoid unnecessary cost overruns to the project.

Background

On July 13, 2010, the Council unanimously adopted a range of recommendations for elements to be incorporated into the City’s three Expo stations that included:

·       Bergamot/26th Street: separate station platforms for east and west bound trains (side-loaded) with full pedestrian track crossings at both ends of the station to integrate the station with the adjacent Bergamot Art Center and the large ridership pool north of Olympic Boulevard. 

·       Memorial Park/17th Street: a second entrance at the west end of the center platform with a full pedestrian track crossing and an off-street transfer area and bicycle facility.

 

On May 24, 2011, the City Council authorized the City Manager to negotiate and execute a funding agreement between the City, Expo and/or Metro to pay for baseline elements of the light rail and stations as the required 3% local match contribution for completion of the light rail line in Santa Monica. Funds were to be paid to Metro over four years as a stream of payments.  The first payment of $4.1 million was appropriated as part of the FY 2011-12 Adopted Budget.

 

Preliminary engineering services at Memorial Park/17th Street and Bergamot/26th Street Stations were approved by Council on June 28, 2011. On September 13, 2011, the City Council authorized the City Manager to negotiate with the Exposition Metro Line Construction Authority (Authority) for the betterments at Memorial Park/17th Street and Bergamot/26th Street Stations.  The same staff report also presented an alternate improved Downtown/4th Street Station alignment that increases train operating speeds and improves station pedestrian access.

 

 The Authority obtained cost proposals from Skanska-Rados Joint Venture (SRJV) for the City-requested betterments at the two stations at Memorial Park/17th Street and Bergamot/26th Street Stations.  An independent assessment of the cost of the betterments was performed by the Authority.  The City and the Authority have worked together to negotiate a reasonable cost for the construction of the betterments.  

 

On December 13, 2011, the City Council authorized the City Manager to negotiate and execute such agreements with the Exposition Metro Line Construction Authority to perform final engineering services and construction of betterments, as may be appropriate, for the Bergamot/26th Street and Memorial Park/17th Street Stations.  The agreements, respectively, were for a not-to-exceed amount of $6,700,000 (includes a contingency and reserve)   and a not-to-exceed amount of $2,400,000 (includes a contingency and reserve) for Bergamot/26th Street and Memorial Park/17th Street Stations.  It was anticipated that this project would be funded through the release of a General Fund assignment of $5 million as well as through future real estate negotiations.

 

Further, on December 13, 2011, Council authorized a not-to-exceed amount of $450,000 with the Exposition Metro Line Construction Authority to perform preliminary engineering services at the Downtown/4th Street Station. The new station design provides better pedestrian access, improves the track curvature, and reduces Expo’s property acquisition of City land. This cost was to be funded with the release of Proposition A Rail Reserve funds. The Authority identified the re-design of the Downtown/4th Street Station as a partial betterment to be funded in part by the City. 

 

Discussion

The recommendations prioritize functionality, safety, and access, and advance Santa Monica’s integrated land use and circulation priorities established in the General Plan. The proactive integration of the stations into Santa Monica is critical to encourage ridership and convenient connections to the stations by bicycle, walking, transit and drop-off.  The City has been working closely with the Construction Authority and Metro on these recommendations as the design process has proceeded, and to ensure coordination with public and private projects in the station areas.

 

3% Local Match

Over the last several months, City and Construction Authority staff have negotiated key terms and conditions of the required 3% local match agreement. The total Phase 2 local contribution for the cities of Los Angeles and Santa Monica is $45,334,740 of which Santa Monica's share is $16.5 million.  City staff is recommending a one-time payment of $16.5 million to satisfy this obligation.

 

Station Betterments

The City has worked closely with the Construction Authority to evaluate the proposed stations with respect to train operations, pedestrian circulation, vehicle flow, noise and the resulting site design.  The station plans for the Memorial Park/17th Street and Bergamot/26th Street Stations have progressed to the 60% engineering stage. For the Downtown/4th Street Station, the City and Authority identified an improved alignment that reduces the impact to traffic operation and improves station pedestrian access.  The revised alignment softens the curvature of the tracks enabling faster egress across the intersection of 5th Street/Colorado Avenue, reducing the potential wheel noise, and improving the resulting opportunities for use of the remainder of the City-owned site.  The preliminary engineering cost is not-to-exceed $450,000.  Expo prepared a cost estimate for final design and construction of $8,400,000.  The estimated total betterment cost is not-to-exceed $8,850,000. The Construction Authority is initiating 30% preliminary engineering.

 

Timely agreements on City-requested betterments are essential to avoid impacting the project timeline and schedule as well as avoid unnecessary cost overruns to the project.  It is desirable to lock-in the station designs, the related track alignment, and associated construction costs. Staff has identified funds that are available more promptly at this time for these necessary commitments.  The Expo Construction Authority and City will review all final statements indicating actual work performed by the contractor (with direct and indirect costs of the work directly associated with this City-authorized work) within 120 days following the commencement of the subject work.

  

Financial Impacts & Budget Actions

Funds for these agreements were transferred to the City by the Redevelopment Agency pursuant to the September 1, 2010 agreement between the Agency and the City, under which the City is carrying out these redevelopment projects. 

 

The following budget appropriations and changes are recommended in order to complete these projects.

 

Account Name

Amount

Account Number

EXPO Light Rail Station Enhancements -  Bergamot/26th St. & 17th St. Station

$9,100,000

R01706617.589000

EXPO Station Betterments – Construction

($5,000,000)

C017065.589000

Fund Balance Assignment- RE Acquisitions & PERS

$5,000,000

1.380230

EXPO Light Rail Station Enhancements- Downtown/4th St. Station

$8,850,000

R01706717.590  

EXPO PE Downtown/4th St. Station

($450,000)

C207065.589000

Prop A Rail Reserve

$450,000

20.341895

EXPO Light Rail Station Enhancements

($4,100,000)

R01702717.589000

EXPO Light Rail Station Enhancements- Local Match

$16,500,000

R01706817.589000

 

Prepared by:  Ellen Gelbard, Assistant Director of Planning & Community Development

                       Lee Swain, City Engineer

 

 

Approved:

 

Approved:

 

 

 

 

 

Kathryn Vernez

Deputy City Manager for Special Projects

 

David Martin

Director of Planning & Community Development

 

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

Martin Pastucha

Director of Public Works

 

Rod Gould

City Manager