sr-012412-3qCity of City Council Report
Santa Monica®
City Council Meeting: January 24, 2012
Agenda Item: 3 - 9_
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:
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.
FJ
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 Bergamot126th 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
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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.
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The following budget appropriations and changes are recommended. in order to
complete these projects.
Account Name
EXPO Light Rail Station Enhancements -
Bergamot/26th St. & 17th St. Station
EXPO Station Betterments — Construction
Fund Balance Assignment- RE Acquisitions &
PERS
EXPO Light Rail Station Enhancements -
Downtown /4th St. Station
EXPO PE Downtown /4th St. Station
Prop A Rail Reserve
EXPO Light Rail Station
EXPO Light Rail Station
Match
Enhancements
Enhancements- Local
Amount Account Number
$9,100,000 R01706617.589000
($5,000,000) C017065.589000
$5,000,000 1.380230
$8,850,000 R01706717.590
($450,000) 0207065.589000
$450,000 20.341895
($4,100,000) R01702717.589000
$16,500,000 R01706817.589000
Prepared by: Ellen Gelbard, Assistant Director of Planning & Community Development
Lee Swain, City Engineer
Approved:
athryn V rnez
Deputy City Manager for Special Projects
Approved:
Martin Pastucha
Director of Public Works
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Approved:
David Martin
Director of Planning & Community
Development
Forwarded to Council:
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Rod Gould
City Manager
Contract Nos. 9540 (CCS)
and 9541 (CCS).