Supplemental Agenda Item No. 34

Board of Directors Meeting January 9, 2019 10:30 a.m.

Location: San Bernardino County Transportation Authority First Floor Lobby Board Room Santa Fe Depot, 1170 W. 3rd Street San Bernardino CA. 92410

DISCUSSION CALENDAR Transit

34. Metro Gold Line Foothill Extension Phase 2B Project Update That the Board, acting as the San Bernardino County Transportation Authority: A. Receive and file an update on the Metro Gold Line Foothill Extension Phase 2B Project. B. Provide direction to staff on the need to work with the Los Angeles Metropolitan Transportation Authority and the Southern California Regional Rail Authority to develop Diesel Multiple Unit Service to meet the transit and transit-oriented development needs in Montclair in case the Metro Gold Line Foothill Extension Phase 2B terminates west of the San Bernardino County/Los Angeles County line. This agenda item was made available after the posting of the agenda.

Minute Action

SUPPLEMENTAL AGENDA ITEM: 34 Date: January 9, 2019 Subject: Metro Gold Line Foothill Extension Phase 2B Project Update Recommendation: That the Board, acting as the San Bernardino County Transportation Authority:

A. Receive and file an update on the Metro Gold Line Foothill Extension Phase 2B Project.

B. Provide direction to staff on the need to work with the Los Angeles Metropolitan Transportation Authority and the Southern California Regional Rail Authority to develop Diesel Multiple Unit Service to meet the transit and transit-oriented development needs in Montclair in case the Metro Gold Line Foothill Extension Phase 2B terminates west of the San Bernardino County/Los Angeles County line. Background: The Metro Foothill Gold Line Phase 2B Project (Project) includes 12.3 miles of light-rail track construction primarily in Los Angeles County, except for 0.6 miles of construction in San Bernardino County, which contains the planned eastern terminus station at the Montclair Transit Center, as shown in Attachment A. The Los Angeles Metropolitan Transportation Authority (LA Metro) is responsible for the funding of the Project in Los Angeles County and the San Bernardino County Transportation Authority (SBCTA) is responsible for funding the portion in San Bernardino County. Through state legislation, the Foothill Gold Line Construction Authority (Construction Authority) was formed for the purposes of overseeing all design and construction contracts for completion of the Los Angeles to Pasadena Metro Gold Line as well as any future extension eastward to Claremont. In 2012, legislation was passed that extended the terminus further east to Montclair in San Bernardino County. In addition to being the responsible funding entities, as the County Transportation Commissions, LA Metro and SBCTA are responsible for planning of mass transit systems in our respective counties.

On June 22, 2017, the LA Metro Board of Directors approved a Life of Project Budget for their portion of the Project in the amount of $1.41 billion and authorized execution of a Project Funding Agreement with the Construction Authority, including provisions to apply for $249 million in State Transit Intercity Rail Capital Program (TIRCP) funds as a LA Metro priority. In December 2018, LA Metro led the effort to submit a TIRCP grant for the remaining funding needed in Los Angeles County, $249 million, as well as the remaining funding needed in San Bernardino County, which was $41 million. The TIRCP grant application was successful with the award of $290 million, and the Construction Authority initiated the design-build procurement process to enter into a contract for design and construction of the Project.

The Construction Authority recently completed the initial procurement process for award of the design-build contract. As reported to their Board on November 13, 2018, they shortlisted four teams, all of which had cost proposals substantially over the budget established in June 2017. Based on the two lowest cost proposals received, Construction Authority staff estimates an additional $570 million is needed to construct the Project to Montclair, and recommended a Entity: San Bernardino County Transportation Authority Board of Directors Agenda Item January 9, 2019 Page 2 phased approach to delivering the project while additional funding is secured. The Construction Authority Board approved moving forward with the phased approach to the project as identified in Attachment A, with the intent of delivering the initial phase to La Verne by 2024 and allowing two additional years to build the remaining phases to Montclair, with the final completion slated for 2028 instead of 2026. Construction Authority staff cited two main reasons for the high cost proposals: market saturation and exacerbated conditions such as high material costs, limited work force availability, and risk associated with building in the Metrolink Corridor. As currently planned, the Project will enter the Metrolink Corridor near the Pomona North Metrolink Station and requires removal and reconstruction of three miles of Metrolink rail infrastructure.

SBCTA requested an updated estimate and rate of expenditure for the work in San Bernardino County in an effort to accurately define the revised funding needed. The Construction Authority advised us that they will not provide an update until after they receive the revised cost proposals from the design-build teams in May 2019. In the meantime, they advised us to expect a 30-40% increase. SBCTA anticipates the total estimated cost for delivery of the Project in San Bernardino County, including Advanced Conceptual Engineering and SBCTA Oversight, could increase from $74 million to $100 million based on the information provided by the Construction Authority, as well as applying a 6% escalation rate to the expenditures that are being delayed two years and allowing for a 10% increase to right-of-way acquisition.

Prior to the cost increase, the work in San Bernardino County was fully funded with receipt of the $41 million of TIRCP funding earmarked for work in San Bernardino County and a combination of non-federal formula funding. It should be noted that the $100 million could be further refined up or down once the Construction Authority provides the requested cost information and after receipt of the best and final cost proposals from the design-build teams.

The initial phasing now proposed includes an interim terminus at La Verne, which could be completed by 2024. The Construction Authority has identified three additional phases-- construction to Pomona North, then to Claremont, and finally to Montclair--based on future funding availability, but targeted for completion by 2028. The Construction Authority is required to complete a re-evaluation of the California Environmental Quality Act (CEQA) Environmental Impact Report (EIR) because they did not include potential project phasing in the original environmental clearance. They are currently going through the steps to complete a Supplemental EIR (SEIR). The public outreach process kicked off in December 2018, adding the four phases as identified in Attachment A, while also proposing to move a parking lot at the Pomona North Metrolink Station

The TIRCP grant criterion focuses on greenhouse gas reduction as well as benefits to disadvantaged communities. As such, the introduction of phasing calls into question the availability of the full amount of TIRCP awarded. However, on December 6, 2018, the LA Metro Board unanimously approved a motion to reiterate their support of the full Project, directed staff to come back in January with a proposed funding plan, and oppose the introduction of any new service in the Gold Line Corridor (included as Attachment B).

SBCTA staff is concerned the Project may not receive the additional funding necessary to build to Montclair. We also harbor concerns with duplication of transit services in the same corridor where they are publicly subsidized at significantly different levels, as is the case with the San Bernardino County Transportation Authority Board of Directors Agenda Item January 9, 2019 Page 3 introduction of Gold Line service in the Metrolink corridor. Currently, it costs $1.75 to ride the Gold Line anywhere, regardless of whether a rider is traveling five miles or forty miles. This translates to the ticket fare contributing approximately 20% of the cost of the ride. Alternatively, Metrolink utilizes a distance-based fare, which results in a one-way ticket fare of $5.75 (after implementation of the 25% fare discount program) between Montclair and Los Angeles Union Station (LAUS) with Metrolink passengers contributing approximately 40% of the cost of the ride through the purchase of tickets.

Due to the disparity in the cost to the riders, SBCTA staff is concerned there will be a substantial shift of Metrolink riders to the Gold Line. A shifting of riders has been demonstrated already, with the introduction of the Gold Line service in Azusa, where the Gold Line Station is located four miles north of the Covina Metrolink Station and accessed from the same arterial roadway. The difference in travel time to LAUS is approximately four (4) minutes longer on the Gold Line. The Metrolink Covina Station realized a 25% ridership decline when the Gold Line service was introduced. This is much higher than the overall 7.6% decline in ridership experienced for the Metrolink San Bernardino Line during that same time period. The funding available for transit operations is extremely limited and constrained. Any substantial decline in Metrolink ridership and the associated fare box revenue will impact SBCTA’s ability to fund the existing rail service in San Bernardino County, which serves all the communities along the existing Metrolink Corridor between Montclair and San Bernardino, and eventually east to Redlands.

With the introduction of Diesel Multiple Units (DMU) in San Bernardino County as part of the future Arrow Service between San Bernardino and Redlands, there is an alternative available that could meet the needs of the communities in the existing Metrolink Corridor between Pomona and Montclair should the Project not receive the additional funding needed to proceed past La Verne or Pomona. The benefit of the DMU service is it can operate on the existing Metrolink infrastructure, negating the need for the costly removal and reconstruction of existing infrastructure and building of a new railroad within the operating right of way of an existing railroad. With a capital investment estimated at $50 million (2018 dollars) for the purchase of two additional DMU vehicles, tail track construction, platform modifications and possible signal upgrades, it is possible to run 30-minute bi-directional service that would meet the needs of the transit-oriented development along existing Metrolink Corridor where a duplication of transit resources is being proposed. Working with the Southern California Regional Rail Authority (SCRRA) who operates the existing Metrolink service in the corridor will be vital to ensuring the overlay of the DMU service integrates well with the current locomotive hauled coach currently being operated.

It is important to understand the commitment made in Measure I as both the Metro Gold Line service and the DMU service require an investment of Measure I Metrolink/Rail Service funds. The Measure I Transportation Expenditure Plan identifies eligible expenditures and states:

“Metrolink/Rail Service. 8% of revenue collected in the Valley Subarea shall fund Metrolink/Rail Service. Eligible expenditures of Metrolink/Rail Service funds include purchase of additional commuter rail passenger cars and locomotives for use on Metrolink lines serving San Bernardino County; construction of additional track capacity necessary to operate more passenger trains on Metrolink lines serving San Bernardino County; construction of additional parking spaces at Metrolink stations in San Bernardino San Bernardino County Transportation Authority Board of Directors Agenda Item January 9, 2019 Page 4

County; and provision of funds to match State and Federal funds used to maintain the railroad track, signal systems, and road crossings for passenger rail service in San Bernardino County, construction and operation of a new passenger rail service between the cities of San Bernardino and Redlands, and construction and operation of an extension of the Gold Line to Montclair Transit Center for San Bernardino County passengers traveling to San Gabriel Valley cities, Pasadena, and Los Angeles.”

SBCTA staff interprets the language in a way that would deem the DMU shuttle service as an eligible expense, as it functions as an extension of the Gold Line and provides the connection between the Montclair Transit Center and passengers traveling to San Gabriel Valley cities. This interpretation is under review by SBCTA General Counsel. Staff would work with Metrolink to develop a schedule that provides 30 minute bi-directional service, which is needed for the transit- oriented development occurring along the corridor between Pomona and Montclair. The Gold Line service is planned to operate at 10 minute bi-directional service, which provides more frequent service but at a higher annual operating cost. The goal is to balance the frequency with the need, so that limited operations funds are used in the most efficient manner. Staff is requesting SBCTA Board direction on working with SCRRA and LA Metro on development of a DMU shuttle service to Montclair in case the Metro Gold Line service does not make it to Montclair. Should more frequent DMU service be needed, it can be accomplished with additional track work and grade separations, but staff does not believe this to be necessary for some time, based on the current development in Montclair. Financial Impact: This item is not consistent with the approved SBCTA Budget, however, a budget amendment is not needed as the planned expenditures are being delayed. Reviewed By: This item has not received prior policy committee or technical advisory committee review. Responsible Staff: Carrie Schindler, Director of Transit and Rail Programs

Approved Board of Directors Date: January 9, 2019 Witnessed By:

San Bernardino County Transportation Authority ATTACHMENT A ·|}þ39

Azusa Glendora M (!M (! APU / Citrus College M Station Glendora(! Station Phase 1 Claremont ·|}þ30 210 La Verne Phase 2 ¨¦§ Phase 3 Phase 4 Upland

(!M ·|}þ66 San Dimas Station M (! POMONA CLAREMONT MONTCLAIR La Verne/Pomona COVINA 57 M M M ·|}þ Fairplex Station (! (! (! Pomona Claremont Montclair Covina North Station Station San Dimas Station

Pomona Montclair Ontario ¨¦§10 West Covina Section to be funded by SBCTA 71 ·|}þ San Bernardino County to Montclair Station Walnut Foothill Extension - Proposed Alignment Anticipated Construction Timelines Æ Metrolink Stations 0 0.5 1 2 Phase 1- La Verne/Pomona Fairplex - August 2019 to November 2024 Miles San Bernardino Metrolink Line Phase 2- Pomona North- August 2019 to August 2025 subject to availability of funding from Metro

M Gold Line Stations (! Phase 3- Claremont- August 2021 to August 2028 subject to availability of funding from Metro Gold Line (Existing) Phase 4 - Montclair - August 2021 to August 2028 subject to availability of funding from Metro and SBCTA (for the portion in San Bernardino County) Gold Line (Proposed Extension) Los Angeles County Metro Metropolitan Transportation Authority One Gateway Plaza 3rd Floor Board Room Board Report Los Angeles, CA

File #: 2018-0772, File Type: Motion / Motion Response Agenda Number: 40.

REGULAR BOARD MEETING DECEMBER 6, 2018

Motion by:

SOLIS, FASANA, GARCETTI, NAJARIAN & BARGER

The Foothill Gold Line extension from Azusa to Claremont is the first Measure M project to break ground. This Foothill Extension has unique opportunities for our county, and its completion will afford our region significant benefits. It is estimated that during construction alone, the project will generate 17,000 jobs and more than $2.6 billion in economic output locally. The line has already begun to generate growth around the future stations and has unprecedented opportunity for significantly more growth through envisioned transit-oriented developments that can afford tens of thousands of desperately-needed housing units within a half-mile of the future stations. Additionally, with the extension’s future connections to two dozen more colleges and universities, the Pomona Fairplex, the Inland Empire and more, it is anticipated that the line will attract more than 28,000 daily passengers in its opening year. This will divert 20% of vehicle trips from local freeways and streets, reduce 146,700 vehicle miles traveled, and provide significant reduction in greenhouse gas emissions. However, current economic and market conditions have resulted in the project needing hundreds of millions of dollars over the project estimate. The funding gap was identified following receipt of bid proposals from four highly-qualified teams competing for the design-build contract. As a result, the completion of the Foothill Extension to Claremont is in jeopardy and action must be taken. The project was identified by the Metro Board as one of two first priority projects in 2009, when projects promoting regional rationality and equity were approved in the Long Range Transportation Plan. The project was promised to county voters twice - in 2008 and in 2016 with Measures R and M, and is one of the twenty-eight by 2028. The Foothill Gold Line Construction Authority has proposed to phase construction within the existing procurement so that the first eight miles of the 12.3-mile project, to La Verne, can be completed in 2024; with the potential to complete the entire project by 2028 if additional funding is secured within the first two years following contract award. While we applaud this proposal and agree we must continue moving forward on this important project, we are not satisfied with even a possibility of the line terminating at the La Verne Station and believe it is critical to fulfill our promise to voters to complete the line to Pomona and to Claremont.

Metro Page 1 of 2 Printed on 11/30/2018 powered by Legistar™ File #: 2018-0772, File Type: Motion / Motion Response Agenda Number: 40.

SUBJECT: METRO GOLD LINE EXTENSION TO CLAREMONT

RECOMMENDATION

WE THEREFORE MOVE that the Board:

A. Reaffirm its commitment to complete the Foothill Extension to Claremont as a first priority project, per the final and unanimous vote to approve the 2009 Long Range Transportation Plan, and in accordance with promises made to county voters in 2008 and 2016 when they overwhelmingly supported Measures R and M;

B. Oppose any actions or proposals that would reduce or eliminate already committed funding secured on behalf of the Foothill Extension project and/or that could disrupt the ability of the Construction Authority to complete the project to Claremont, including but not limited to proposals to introduce new rail service within the future Gold Line corridor that could make it more difficult and more costly to complete the project to Claremont;

C. Direct our CEO to work closely with the Construction Authority to identify possible funding sources and approaches that could be used to fill the remaining funding gap to build the project all the way to Pomona and to Claremont.

D. Direct our CEO to report back to the Board in January 2019 with options for initial funding to extend the first phase beyond La Verne to Pomona, with the second phase consisting of Claremont and Montclair.