June 27, 2013

A Substitute Motion to Item 70 as Relating to Items 12 and 52 With Respect to the Update of the Long Range Transportation Plan (LRTP) Financial Forecast By Directors Knabe, O’Connor, Dubois and Katz

As the economy continues to recover and interest rates for additional borrowing remain at historic lows, the Metro Board of Directors finds the demand for Proposition C 25% funds is over-stated and the capacity for planned Proposition C 25% borrowing is unnecessarily accelerated in the Updated LRTP Financial Forecast. Furthermore, additional Proposition C 25% borrowing cannot impact the LACMTA's ability to operate its transit services because those uses are not permitted from this fund source. The Metro CEO has followed the Measure R Cost Management Process and Policy in recommending the trade-offs necessary to control project costs. It is clearly evident that strictly following the Metro Board's Measure R Cost Management Process and Policy will have detrimental impacts to other Measure R projects promised later in the LRTP for the Central, Gateway, South Bay, and Westside areas, and to a lesser extent, the San Fernando Valley area; while at the same time waiving elements of the policy with the use of Proposition C 25% funds is possible and preferable to undermining the promises made to the voters in 2008. In the context of the application of the Measure R Cost Management Process and Policy, it is important to note that the text of the Measure R Ordinance specifically identifies a broad list of projects in the Ordinance that the voters countywide voted to approve and, as such, be considered as “countywide” projects versus “corridor” projects subsequently identified in the Expenditure Plan; and by such delineation should be exempt from the Cost Management Process and Policy in so far as relying on “corridor” projects to backfill inevitable cost increases.
SECTION16: EFFECTIVE AND OPERATIVE DATES a. This Ordinance shall be effective on January 2, 2009, if: 1. Two-thirds (2/3) of the electors voting on the measure authorizing the imposition of the Sales Tax vote to authorize its enactment at the statewide general election scheduled for November 4, 2008; 2. A. Requires Metro to include in Attachment A the following projects, programs, and funding levels: (Including but not limited to the following projects :) • Exposition Boulevard Light Rail Transit Project from downtown Los Angeles to Santa Monica • • • • • Crenshaw Transit Corridor from Wilshire Blvd. to LAX San Fernando Valley North South Rapidways Metro Regional Connector Metro Westside Subway extension State Highway Route 5 Carmenita Road Interchange Improvement

1

June 27, 2013
• State Highway Route 5 Capacity Enhancement (Route 605 to the Orange County Line), including improvements to the Valley View interchange

We, Therefore Move that the Metro Board of Directors Amend Items No. 12 and No. 52 as follows:
• Recommending Approval of the CEO's recommendations contained in Item No. 12, Sections A (1) (a), (b), and (c), under the following conditions :

o

The LACMTA Board of Directors hereby instructs the CEO to change the LRTP Financial Forecast to more accurately reflect the anticipated cash flow needs of the highway and transit programs expected to utilize Proposition C 25% funds in FY 2013 and through FY 2019 such that the modifications below can be funded through a combination of more accurate forecasting and increased borrowing, if necessary; and

Changes portions of the CEO's Measure R Project Cost Control Process and Policy compliance-recommendations in Item No. 12 - A (2) of the staff report by instructing staff to identify up to $377.91 million in alternative Proposition C 25% funds (or bonds backed by Proposition C 25%, if necessary) through FY 2019, consistent with the following: o Approve all recommendations in Item No. 12 Attachment B (pg. 35) of the staff report except that the following projects’ costs are to be funded with Proposition C 25% funds (or bonds backed by Proposition C 25% funds, if necessary) instead of other proposed Measure R corridor or subregional trade-offs, as follows:  The Crenshaw/LAX project is to receive a total of $160 million as follows:

 $149.91 million from Proposition C 25% funds instead of other funds proposed through subregional and corridor trade-offs involving the Central Area Call for Projects and the Airport Metro Connector;

 $10.09 million from Proposition C 40% (Wilshire Bus Rapid Transit Project)

The I-5 South is to receive $153.00 million from Proposition C 25% funds instead of other funds proposed through subregional and corridor trade2

June 27, 2013 offs involving Measure R reserves from I-5 South and I-5 South at Carmenita;

The I-405 project is to receive $75.00 million from Proposition C 25% funds instead of other funds proposed through subregional and corridor tradeoffs involving Measure R reserves from Expo and I-5 North; and,

Stipulates that the above Proposition C 25% direct funding and borrowing (if necessary) be planned in a manner that does not impact the schedule and scope of work funded in the LRTP for the Las Virgenes/Malibu, North County, San Gabriel Valley, San Fernando Valley and Arroyo Verdugo and South Bay; and

Approval of the following to cover cost increases using the following available funds:  $73.11 million for the Westside Subway Extension Project from Lease Revenues (Wilshire Bus Rapid Transit Project)  $32 million for the Regional Connector Project from Lease Revenues (Wilshire Bus Rapid Transit Project)  $39 million for Exposition Line Phase I from Proposition C 25% (Exposition Phase II Line)

In conclusion, the changes cited above in this Motion hereby supersede the staff recommendations presently contained in Items No. 12 Sections A-2 and Attachment B (The Updated LRTP Financial Forecast) and No. 52 Sections C -1, 2, and 3 (The Crenshaw/LAX Transit Corridor Project) and upon Approval of this Motion will be immediately conformed to reflect the changes to items No.12 and No. 52, respectively, as instructed in this Motion.

3