MINUTES/PROCEEDINGS

LOS ANGELES COUNTY -METROPOLITAN TRANSPORTATION AUTHORITY

REGULAR BOARD MEETINGBOARD OF DIRECTORS

October 26, 1994

Kenneth Hahn Hall of Administration500 West Temple Street, 3rd Floor

Board of Supervisors’ Hearing RoomLos Angeles

Called to Order at 1:50 P.M.

Directors/Alternates Present:

Edmund Edelman, Chair/Marvin HolenLarry Zarian, First Vice Chair/Jan HeidtRichard Riordhn, Second Vice ChairNate HoldenMichael Antonovich/Nick PatsaourasRaul Perez/Thomas J. ClarkYvonne Brathwaite Burke/Mas FukaiJames CraginDeane Dana/Robert ArthurJohn Fasana/Phyllis PapenGloria Molina/Vivien C. BonzoMel Wilson/Hal BernsonZev YaroslavskryJack Hallin, Ex Officio

APPROVED Minutes of:

A. Regular Board Meeting - September 21, 1994 and ReconvenedMeeting of September 23, 1994.

B. Special Board Meeting - September 21, 1994

2 o CLOSED SESSION ITEMS - DEFERRED

A. Real Estate - G.C. 54956.8

Conference with Real Property. Negotiators concerningPrice and/or Terms of Payment:

Parcel USG-013A and USG-13BOwner - Southern California Gas Co.500 Ramirez StreetPrice

2 o Parcels USG-013A and USG-013BOwner - S & P Company530 Ramirez StreetPrice

3 o Parcel USG-013A and USG-013BOwner - Camille’s D/B/A Denny’s Restaurant530 Ramirez Street - PricePrice

4 ..... Parcel No. PA-046~ ~ Owner - Lepore & Angiuano;

3571 Pasadena Ave.Los Angeles, CAPrice

5 o Parcel No.B2-1513785 Wilshire Blvd.

Los Angeles, CA.Price

Parcel No.B2-1796150 Hollywood Blvd.Los Angeles, CA.Price

Thrifty Corporation;

J. Ned Inc.;

Existinq Litiqation - G.C. 54956.9 (a)

Labor Community Strategy Center, et. al. vs. LACMTA, et.al.

3 o

CHAIR’S REMARKS

ACCEPTED national APTA Adwheel First Place Award for the MTAMarketing Department’s Anti-Graffiti ’Take Pride, Stop Tag’Program. ¯

CHIEF EXECUTIVE OFFICER’S REPORT

A. C~_RRIED OVER report on the status of the Deloitte-ToucheOperations Task Force.

Items 4.B. and 13 were considere~ simultaneously.

B. RECEIVED report on plans to resume tunnelling.

13. CONSIDERED Chief Executive Officer’s recommendation for theelimination of the Rail Construction Corporation (RCC)

(Required vote by Principals)

CEO Franklin White reported that today that stringentconstruction procedures, under which tunneling could resumebeneath Hollywood Boulevard, were submitted to the FTA and theFTA was notified that the MTA will assume direct control overconstruction quality and safety.

Director Patsaouras said the MTA plan does not go far enough;he called the proposed changes cosmetic and superficial.Creators of the plans, specifications and drawings should makesure that what they designed is what gets installed, otherwisethere is no quality assurance and incentives are built in tocreate change orders.

Director Riordan offered the following motion:

That the MTA Board endorse the steps taken by the CEO toimplement a comprehensive construction management plan whichwould increase the efficiency of MTA construction projects,improve quality, enhance safety and make the MTA staff fullyaccountable for the project.

That this motion be transmitted to the Department ofTransportation Federal Transit Administration to send apowerful and determined message that the MTA is ready to takethe necessary actions to ensure the Metro Rail ~Red Linecontinues to move forward in a safe and efficient manner.

That Arthur Andersen LLP be retained to work with the MTADeputy of Construction and CEO to review and recommend aprocess and control system for capital construction, contractprocurement and quality assurance including recommendations onhow the MTA Board can be more effective in its oversight;

Direct Arthur Andersen and the Deputy of Construction topgovide in January 1995, at a joint meeting of the ExecutiveManagement Committee and Cozstruction Committee, a report ontheir recommendations; and

Effective November I, 1994, replace the Board of the RailConstruction Corporation with a newly established ConstructionCommittee of the MTA Board.

The motion was seconded and discussion ensued.

Director Molina questioned whether members of the Board werefuncti0n~ng as managers or policy makers and sought a clearerunderstanding of how these changes would be implemented.

Franklin White indicated that the most important changes arein the areas of safety and quality assurance. Director Molinacomplained that the report was not received in sufficient timeand does not mention any role for the Board of Directors. Sheadded that she does not see how greater accountability willresult.

Director Holen suggested combining the efforts of ArthurAndersen and Jerry Baxter.

Responding to Board query, CEO White indicated that at afuture Board Meeting an engineer could walk members throughwhat went wrong with the tunnelling in the first place.

Director Holden suggested taking the remedy available andmoving on to developing plans around that process later on.He added that the RTD had more of a hands on approach withconstruction oversight, but with the RCC as a separate entitythe LACTC had no direct input or oversight; hence the problemsthat developed in Hollywood.

Director Zarian made a motion that the Construction Committeebe composed of 5 Board members and 3 non-voting constructionexperts. Director Dana added that the MTA CEO be an exofficio member. These motions were accepted by and includedin the motion offered by Director Riordan.

Director Arthur moved that the Construction Committeeimplementation date be moved to December i. Mr. Whiteresponded that the consensus is that the change could beimplemented immediately.

At this point in the Board Meeting, the Chair postponedfurther discussion of this issue to take public comment fromelected officials on the, East/West Valley Rail issue.However, for the sake of clarity, all action on each item willbe shown in one place in the Minutes.

In response to query from the Board, Legal Counsel explainedthat there is no requirement under State Law regarding theselection of Arthur Andersen, but under MTA rules there is anexception for emergency circumstances.

Director Riordan accepted Director Antonovich’s suggestion tohave an RFQ with a three-day response time and authorize theExecutive Management Committee and CEO to make a finalselection.

Director Cragin offered the following amendment to the Mayor’smotion:

That any MTA Board Member or alternate who serves on the RailConstruction Corporation Board or its successorcommittee/board be restricted from accepting campaigncontributions from any firm doing work or bidding on contractsto do work on any MTA projects which are reviewed by or acted~

upon by the rail committee/board. Details on implementationof this motion will be worked out by the Rules Committee.

Director Cragin’s amendment was seconded and approved on avoice vote.

Director Burke offered an amendment to the Mayor’s motion thatfive of the members of the construction committee be appointedby the Chair, and the three ex officio members be appointed,one by Board members representing the County of Los A~geles,one appointed by Board members representing the City of LosAngeles, and one appointed by Board members representing theLeague of California Cities, City Selection Committee.

Director Fasana made a motion to have Director Cragin’samendment regarding receipt of contributions apply to allBoard members and be reviewed by a committee. He was~remindedthat Director Cragin’s amendment was approved, and he thenmade a motion to reconsider the matter. That motion wasseconded by Director Arthur and defeated on the following RollCall Vote:

Ayes: FasanaNoes: Edelman, Holden, Antonovich, Burke, Cragin, Dana,

Molina, Perez, Riordan, Yaroslavsky, Wilson,Zarian

Abstain: NoneAbsent: None ~

Public Comment on items 4 and 13:

Chris Shabel, Hollywood Stakeholders

Howard Watts, SelfIn favor of eliminating the RCC

Robert Nudelman, Hollywood Blvd. Community CouncilStated that the EIR was fraudulent.

Tim Roberts, SelfQuestioned the selection of Arthur Anderson with a formal bidprocess.

Bob D’Amato, L.A. TwiceAgainst the interim reorganizationlieutenants are still running the show.

because McSpedon’s

Pat Moser, Southern California Transit AdvocatesFavors closer management and scrutiny by the Board.

John Walsh, United RidersRequested an apology from the Board.

Pat Chiodo, Safety, Mining and EngineeringComplained that people being put in safety positions have noexperience.

Percy D. Austin, Wilshire Park AssociationQuestioned selection of Arthur Andersen and asked that no votebe taken until this question is answered.

Dana Gabbard, Southern California Transit AdvocatesQuestioned the need to bring in Arthur Andersen before JerryBaxter has a chance to get his feet wet.

Bob Kruse, RCCSaid RCC is a convenient scapegoat.

On a call for the question, APPROVED the Mayor’s motion asamended for the elimination of the Rail ConstructionCorporation and plans for resumption of tunneling (See ExhibitI, attached). The motion was approved on the following RollCall vote of Principals only:

Ayes:

Noes:Abstain:Absent:

Edelman, Antonovich, Burke, Cragin, Dana, Fasana,Molina, Perez, Riordan, Wilson, ZarianNoneNoneSanders, Alatorre

7 o DIRECTOR’S SPECIAL ITEMS

Wilson: Presentation on East-West Valley Rail Alignment.

Commen~was received from:

Congressman Anthony Beilensen In favor of the BurbankChandler Route because it would be less visually intrusive andhave less impact on business and communities.

Senator David Roberti - In favor of the Burbank Chandlersubway which is supported by most homeowners and businesses inthe area.

Assemblymember Paula Boland In favor of a ground-levelmonorail system because people in the valley voted for amonorail and it could be moving people by the year 2000.

Senator Herschel Rosenthal - In favor of the subway because hefeels it’s bad planning to have a transportation system on topof the valley’s only east/west transit corridor in case of anearthquake.

Assemblymember Richard Katz commented that the confidence ofthe FTA and the people needs to be restored. The accidentrate on the Ventura Freeway is 48% higher per mile than on theSan Diego Freeway and 18% higher for trucks. Imagine whatadding construction would do. A 3.5 minute delay for thecommuter for the life of the project would cost $30~,000,000in lost economic activity. Fifty seven feet of new right ofway would have to be purchased and 5 miles of retaining wallswould have to be built in people’s back yards.

Councilmember Laura Chick - In favor of the Burbank Chandlersubway. The Ventura Freeway during construction would be anightmare.

Assemblymember Barbara Frie4manChandler Route.

In favor of the Burbank

Assemblymember Terry Friedman - Called the Burbank Chandleralignment the best choice for residents of the San FernandoValley.

Councilman Marvin Braude said the Burbank Chandler Route isfavored by most of the homeowners and businesses in theValley.

Comment in favor of Ventura Freeway Route received from:

Gilda Hanson, Valley residentMarilyn Minkle, Western Sector Transit CoalitionJulie Fine, Western Sector Transit CoalitionStephen Witkin, Corbin Palms - WSTCDon Schultz, President of Van Nuys Homeowners Assoc.Prudy Schultz, Director of Van Nuys Homeowners Assoc.Rabbi Marvin Sugarman, East Valley Transportation CoalitionAdriana Noonan, Van Nuys Homeowners Assoc.Dr. S. Feuerstein, Congregation Adat Ari E1 and Eastern Sector

Transit CoalitionJudge Will Ross, Van Nuys Homeowners Assoc.

Comment in favor of Burbank-Chandler Route received from:

Gerald A. Silver, Valleywide Transportation CouncilMarcia Mednick, Valley Industry & Commerce Assoc.Polly Ward, Studio City Residents Assoc.Roberta Weintraub, SelfGuy McCreary, Universal City/No. Hollywood, Chamber of

CommerceJoseph Montoya, Eminent Domain AttorneyWilly Leon, BusinessmanBonny Matheson, VICAJerry Curry, President of United Chambers of CommerCe of the

San Fernando ValleyLori Dinkin, President of Valley Village Homeowners Assoc.James H. Stewart, Mid Valley Chamber of CommerceEstheranne Billings, Encino Park Improvement CommitteeRobert J. Gross, Woodland Hills Homeowners OrganizationBill Jasper, President of Encino Property Owners Assoc.

Items 7 and 12 were considered simultaneously.

12. APPROVED:

Ao Initiation of work on a Major Investment Study/DraftEnviror~mentalImpactStatement/SupplementalEnvironmentalImpact Report (MIS/DEIS/SEIR) for the Valley East-WestTransit Corridor; and

Bo Defined a corridor boundary to be comprised of theSouthern Pacific Burbank Branch Corridor.

Director Riordan indicated that he was not in favor ofchanging the Robbins bill and could not support the staffrecommendation to study multiple alternatives. He then madethe following motion, which was seconded by Director Wilson:

That the MTA Board initiate the Major Investment Study, DraftEnvironmental Impact Statement, and Supplemental EnvironmentalImpact Statement, and Supplemental Environmental Impact Reportfor the SP Burbank Branch alignment, including review of costsaving measures: non-deep bore subway constructiontechniques; open air or skylight subway station design;deferral of stations with low ridership projections; andbidding the project on a "turnkey" basis with financing anddevelopment incentives.

Brief presentations were received from representatives ofFrederick Harris, LADOT and Cal Trans.

Director Antonovich reminded that the San Fernando Valley hasa high water table and that water has to be treated. Alsohaving easements under homes will reduce property values. Hethen asked for a 90-day study to verify the cost savings of anat-grade system.

Chairman Edelman then called for a vote on the previousquestion which was APPROVED on the following Roll Call Vote:

Ayes:

Noes:Abstain:Absent:

Edelman, Holden, Burke, Cragin,Yaroslavsky, Wilson, ZarianAntonovich, Dana, Fasana, PerezNoneNone

Molina, Riordan

That vote was followed immediately by a vote on the Mayor’smotion which was also APPROVED on the following Roll Callvote:

Ayes: Edelman, Holden, Burke, Cragin, Molina, Riordan,Yaroslavsky, WilsonAntonovich, Dana, Fasana, Perez, ZarianNoneNone

Noes:Abstain:Absent:

CONSENT CALENDAR

Items 14-24, 26-30, 32, 34-42, 43B and 44 of the ConsentCalendar were unanimous approved by voice vote on one motion.

Items 25, and 33 were pulled for discussion and subsequentlyapproved on individual motions. Item 43A was withdrawn bystaff, and item 31 was carried over.

31. CARRIED OVER RCC’s recommendation to approve Change Order No..49 to Contract No. B211 with Tutor/Saliba Corporation coveringa potential Safety Awareness incentive award for the Metro RedLine, Segment 2 of $384,871.77 for a value of up to onepercent of the Contract Award Value but not to exceed$5oo,o0o.

Directors Dana/Arthur and Riordan indicated conflicts on thisitem.

43. WITHDRAWN BY STAFF:

a. Adoption of the final Ethics Policy Manual.

APPROVED:

b. Introduction of an ordinance adopting ChapterSection 3.1 (c) of the Ethics Policy Manual.

3.0,

14. APPROVED the request of the Access Service Incorporated Boardof Directors for MTA to withdraw from Access ServicesIncorporated and the Los Angeles County CoordinatedParatransit Plan.

15. APPROVED requisition No. 4-5720-53 and:

Ao Award of a unit-rate contract to PharmChem Laboratories,Inc., Menlo Park, as the primary laboratory providingclinical laboratory services (drug testing) for a oneyear period beginning January i, 1995 at an estimatedcontract amount of $220,000; and

B. Award of a contract to Poison Lab, San Diego, as an"alternate" laboratory to provide "back-up" laboratoryservices if required.

Directors Riordan/Yaroslavsky indicated a conflict on thisitem.

16. APPROVED Requisition No. 4-5720-134 and amendment to close outthe existing contract with Unilab Corporation effectiveDecember 31, 1994, covering the provision of clinicallaboratory services to perform drug and alcohol testing forthe MTA’s Alcohol and Drug Abuse Program, increasing the costby an additional estimated $140,000, for a total contractamount of $850,000 over a five year period.

Directors Riordan/Yaroslavsky indicated a conflict on thisitem.

17. APPROVED:

ao Rejection of non-responsive bid submitted by Coast LineEquipment and a contract with the lowest responsive,responsible bidder, Cook Tractor, Cerritos, under Bid No.06-9414, covering a ~i-Rail Backhoe for a total bid priceof $138,345;

B o A contract with the lowest responsive, responsiblebidder, Pandrol Jackson, Luddington, Michigan, under BidNo. 06-9416, covering a production switch tamper and lowboy rail trailer for a total bid price of $654~346.

18. APPROVED Minor Route Modification to Line 484 in the Cities ofIndustry, Walnut and Pomona.

19. APPROVED Minor Route Modification to Line 202 in the RanchoDominguez area of the county of Los Angeles.

20. APPROVED an Agreement with the City of Los Angeles for thecontinued operation of Line 208 Beachwood Shuttle.

21. APPROVED Requisition 4-3597-140 and a contract with CoastEngineering and Construction Corp., Los Angeles, the lowestresponsive, responsible bidder under IFB No. 09-9429-C for theconstruction of Compressed Natural Gas Fueling Facility atDivisions 8 and i0 for a fixed price of $2,998,950.

22. APPROVED a Public Hearing date of November 15, 1994 regardingMTA’s self evaluation of its compliance with Title II of theAmericans with Disabilities Act, and to report recommendedimplementation actions.

23. APPROVED a Memorandum of Understanding with the"SouthernCalifornia Association of Governments and other CountyTransportation CoE~issions regarding inter-agency coordinationresponsibilities of the Federal Clean Air Act.

24. APPROVED:

five FY95-96 State Transit Capital Improvement (TCI)project applications totaling $20.5 million for fundingunder the FY 1995-96 State TCI Program; and

Bo adoption of the Regional Guideway Financial Plan totaling$20.5 million of State TCI funds for the followingrecommended projects:

2 o

3 °

Unfon Station GatewayIntermodal Transit Center $ 8.0

Burbank Regional IntermodalTransit Center 1.0

Northridge Metrolink Station 1.3

Sun Valley Metrolink Station 1.6

Red Line Maintenance of WayExpansion project 8.6

Total $20.5

13

26. APPROVED Requisition No. 4-5730-154 and a three-year leasepurchase contract with International Business Machines (IBM)corporation, Los Angeles, covering replacement computerhardware and relocation services for the move of informationprocessing operations to the new headquarters building for atotal cost not to exceed $4,250,000.

27. APPROVED an agreement with the National Railroad PassengerCorporation (Amtrak) governing the te~s and conditions forAmtrak’s shared use of railroad right-of-ways owned by SCRRA’smember agencies, such agreement to be retroactively effectiveas of March I, 1994.

28. APPROVED Change Order No. 51 to Contract No. H0832 with PacTelMeridian Systems covering the furnishing and installation ofa Cable Transmission System on the Metro Green Line for atotal amount of $288,600, which increases the total contractvalue to $11,550,363.

Directors Edelman/Holen indicated a conflict on this item.

29. APPROVED ~Change Order No. 9 to Contract No. H0900 with MassElectric Construction Corporation covering the design,furnishing, installation, and testing of the Safety andSecurity Communication System on the Metro Green Line for atotal amount of $520,500, which increases the total contractamount value to $10,763,878.

Directors Antonovich/Patsaouras indicated a conflict on thisitem.

30. APPROVED an increase to Kabler Construction Services, ContractNo. MC022, covering delay and design changes, in the currentAFE amount of $203,510 for a revised total AFE of $224,656.

32. APPROVED Change Notice No. 9.02 to Contract No. B215 withTutor/Saliba Corporation covering the design, procurement andinstallation of an automatic sprinkler system on the Metro RedLine, Segment 2 for the public areas of the Wilshire/VermontStation, Stage II and modifications to the ceiling suspensionsystem for a Not-to-Exceed value of $750,000.

Directors Dana/Arthur indicated conflicts on this item.

34. APPROVED an increase in the Authorization for Expenditure(AFE) for Contract No. C0150 covering replacement of station

platform, edge warning strips, installation of track crossingwarning strips, and installation of accessible curb ramps,walks and parking for the Metro Blue Line in the amount of$77,648, for a revised approved AFE amount of $1,350,000.

35. APPROVED Metro Red Line, Segment 3 Contract LRA-516-94 withPacific Relocation Consultants, covering relocation assistanceservices for occupants of six Metro Red Line Segment 3 parcelsin the Universal City station area for $264,926, plus a 10%contract contingency to cover the cost of changes and extrawork in the amount of $26,493, for a total amount of $291,419.

36. APPROVED~Metro Red Line, Segment 3 Contract C0358 with WilliamL. Olson, Inc. the lowest-priced, responsive and responsiblebidder, covering the North Hollywood Station Site Demolitionfor a total contract amount of $229,735. Award is contingentupon receipt of bonds, insurance, and resolution of anyprotest filed in a timely manner.

37. APPROVED the Hollywood Trolley Pilot Project Contract No.CR061 to ATE Management for a period of approximately ninetydays for the not-to-exceed amount of $165,620; and APPROVEDthe issuance of a Request for Proposal for the long-termprovision of a trolley-bus or shuttle service along Holly~oodBouievard.

38. APPROVED the installation of secondary signage which reads"Serving Continental Park" at the Douglas Street/RosecransAvenue Metro Green Line Station.

39. ADOPTED proposed Joint Development/Child Care FacilitiesPolicies.

40. APPROVED the proposed Move-On Housing policy and AUTHORIZEDrelease of a Request for Information and Qualifications (RFIQ)to determine interested participation.

41. CONCURRED WITH AND ENDORSED ~he City of Los Angeles Land UseTransportation Policy and implementation.

42. ADOPTED a policy governing procedure to present new motionshaving a financial or policy implication no later than 48hours in advance of a meeting.

44. RECEIVED AND FILED status report on Board Requests.

25. AUTHORIZED:

Ao Use of up to $2,528,000 in funds that become availablefrom deobligations on other projects during the course ofthe year on the Kaiser Portal project;

So Reduction of the ISTEA formula (CMAQ/RSTP) fund targetsfor the F¥ 1994-95 Call for Projects for the balancerequired to fully fund the Kaiser Portal project up to$2,528,000, if funding from project deobligations isinsufficient; and

Co Directed staff to draft contract language covering somelevel of reimbursement for the MTA should the Kaiser-owned property change hands.

33. CONSIDERED rejection of all bids received for Metro Red LineSegment 3 Contract No. C0301 covering construction ofHollywood/Highland Station and Turunel.

Director Arthur made a motion to carry the item over. Themotion was seconded by Director Perez and discussion ensued.

The CEO explained that staff’s initial view was to reject theprotest. However, upon receipt of additional material, therewas no choice but to uphold the protest. The representationsthat are being made are not true and we need to go forward.The issue here has to do with whether or not the firm involvedwas of a certain category and how that decision was made. TheMTA Directory called the firm a DBE. The firm submitted apaper to the low bidder whic~ said we are an MBE not a DBEo

Director Molina explained that the RCC should have awarded tothe next low bidder or asked that new bids be solicited. Theydisagreed with what the CEO said and took an action they werenot authorized to take.

Director Cragin then moved approval of the CEO’srecommendation to reject all bids and rebid the subjectcontraqt;~Director Molina seconded.

Comment received from Ron Tutor saying that he was the lowbidder and had received the award based on good faith efforts,and then based on having met the goal by relying oninformation contained in the MTA directory.

Motion to carry the item over FAILED on the following RollCall vote:

Ayes:Noes:

Abstain:Absent:

Arthur, PerezEdelman, Burke, Cragin, Fasana,Yaroslavsky, WilsonNoneAlatorre, /~ntonovich, Riordan, Zarian

Molina,

The motion to reject all bids and rebid the item was APPROVEDon the following Roll Call vote:

Ayes:

Noes:Abstain:Absent:

Edelman, Burke, Cragin, Fasana, Molina,Yaroslavsky, WilsonNoneArthurAlatorre, Antonovich, Riordan, Zarian

Perez,

PUBLIC HEARINGS

HELD Public Hearing and ADOPTED local conformance findings forthe 1993 Congestion Management Program for Los Angeles County,and membership revisions for the CMP Conformance AppealAdvisory Panel.

o WITHDRAWN BY STAFF - Public,Hearing regarding Necessity forthe acquisition of real Property Interest (Fee Interest) that Certain Real Property Located at 530 Ramirez Street inthe City of Los Angeles, County of Los Angeles, State ofCalifornia. Owners: Maier Brewing Company, Keller StreetDevelopment Company, S & P Company. MTA File Number: USG-013A; USG-013B.

ITEMS CARRIED OVER FROM PREVIOUS MEETINGS

8, CARRIED OVER RCC’s recommendation to execute Amendment No. 8to Contract No. FM-014 with Fluor Daniel, Inc. coveringcontinued Project Management Assistance services for MetroRail Transit, in the amount of $387,934, which increases thetotal contract value to $13,793,604.

APPROVED Change Order No. 65 to Contract No. B201 withTutor/Saliba-Perini, a Joint Venture, covering the encounterof differing site conditions in the Wilshire Tunnels betweenMacArthur Park and Wilshire/ Vermont Station, on the Metro RedLine, Segment 2, in the amount of $348,249.

Directors Dana/Arthur indicated a conflict on this item.

I0. APPROVED Change Order No. 92 to Contract No. B221 withTutor/Saliba-Perini, a Joint Venture, covering the encounterof differing site ~onditions in the Wilshire Tunnels betweenthe Wilshire/Vermont and Wilshire/Western Stations, on theMetro Red Line, Segment 2, in the amount of $494,624.

Directors Dana/Arthur indicated a conflict on this item.

ii. APPROVED Change Order No. 87 to Contract No. B231 with Tutor-Saliba/Perini, a Joint Venture, covering additional costs dueto rain delay, which increases the contract value by $324,000,and extends the contract duration by 23 calendar days with noimpact to the Revenue Operations Date.

Directors Dana/Arthur indicated a conflict on this item.

Director Papen questioned why these changes are not beingreviewed by Legal. CEO White responded that the policy wasmeant to be prospective and not to apply to change ordersalready in the system.

ADDED ITEM

CARRIED OVER Chief Executive Officer’s recommendation toextend the Exclusive Right to Negotiate with E.S PropertiesLTD. cQyering parcel 2218-024-001, 7227 Van Nuys Blvd. & 14557Sherman Way, location 24, for a sixty (60) day period.

OTHER

45. No items were considered which were not on the posted agenda.

46. Comment received from:

B. D’Amato against approval of these change orders as thecontractor should have known of the existence of boulders,etc.

Do Gabbard questioned status of proposals from Muni’s.

Adjourned at 6:50 P.M.

EXHIBIT 1

RESOLUTION

WHEREAS, on October 5, 1994, the U.S. Department ofTransportation, Federal Transit Administration (FTA) notified theMTA that federal funds would be withheld for the Metro Rail RedLine and that tunneling beneath Hollywood Boulevard would ceaseuntil written plans were submitted by the MTA which detailed arevised construction management structure with technical tunnelingresumption procedures that incorporated the FTA’s ProjectManagement Oversight recommendations; and

WHEREAS, the FTA also stated that negotiations would continuefor pending amendments to the Full Funding Grant Agreement forSegment 3, but would not be executed until the MTA constructionplan was submitted and approved by the FTA; and

WHEREAS, FTA Administrator ~6rdon J. Linton was in Los Angelesand notified MTA officials that the Clinton Administration firmlybelieves in the Metro Rail Red Line project, supports itscontinuation, but insists it be built in a safe and fiscallyresponsive manner; and

WHEREAS, today, the MTA submitted stringent constructionprocedures to the FTA under which tunneling could resume beneathHollywood Boulevard. In addition, the MTA notified the FTA that itwill assume direct control over construction quality and saf~ty~

NOW THEREFORE BE IT RESOLVED, that the MTA Board of Directorsdoes hereby endorse the steps taken by the CEO to implement acomprehensive construction management plan which would increase theefficiency of MTA construction projects, improve quality, enhancesafety and make the MTA staff fully accountablefor the project.

RESOL~ED FURTHER, that this resolution is hereby transmittedto the Department of Transportation, Federal Transit Administration-to send a powerful and determined message that the MTA is ready totake the necessary actions to ensure the Metro Rail Red Linecontinues tomove forward in a safe and efficient manner;

RESOLVED FURTHER, that the MTA Board:

Bo

Authorize staff to prepare an RFQ, with a three day responsetime, for a construction oversight consultant to work with theMTA Deputy of Construction Management Review and CEO to reviewand recommend a process and control system for capitalconstruction, contract procurement and quality assurance,including recommendations on how the MTA Board can be moreeffective in its oversight;

Delegate, to the Executive Management Committee and the CEO,authority to carry out the consultant selection process;

Co Direct the selected consultant, the Deputy of ConstructionManagement Review and CEO to provide in January 1995, at ajoint meeting of the Executive Management Committee andConstruction Committee, a report on their recommendations;

Do That the selected consultant, Deputy of ConstructionManagement Review and the C~b report to EMC and ConstructionCommittee on a regular basis during the study;

RESOLVED FURTHER, effective November i, 1994, the Board of theRail Construction Corporation is hereby replaced with a newlyestablished Construction Committee of the MTA Board to be comprisedof 5 members of the MTA Board, appointed by the Chair, who shall bethe only voting members of the committee; and 3 ex officio membersselected on the basis of their experience and expertise inconstruction (particularly rail construction), one appointed Board members representing the County of Los Angeles, one appointedby Board m~mbers representing the City of Los Angeles, and oneappointed by Board members representing the League of CaliforniaCities, City Selection Committee;

RESOLVED FURTHER, that the MTA CEO be an ex officio member ofthe Construction Committee without voting rights;

RESOLVED FURTHER, that any MTA Board member or alternate whoserves on the Construction Committee be restricted from acceptingcampaign contributions from any firm doing work or bidding oncontracts to do work on any MTA projects which are reviewed by oracted upon by the Construction Committee.

RESOLVED FURTHER, that the MTA Board:

Authorize staff to prepare an RFQ, with a three day responsetime, for a construction oversight consultant to work with theMTA Deputy of Construction Management Review and CEO to reviewand recommend a process and control system for capitalconstruction, contract procurement and quality assurance,including recommendations on how the MTA Board can be moreeffective in its oversight;

Delegate, to the Executive Management Committee and the CEO,authority to carry out the. consultant selection process;

Direct the selected consultant, the Deputy of ConstructionManagement Review and CEO to provide in January 1995, at ajoint meeting of the Executive Management Committee andConstruction Committee, a report on their recommendations;

That the selected consultant, Deputy of ConstructionManagement Review and the C~b report to EMC and ConstructionCommittee on a regular basis during the study;

RESOLVED FURTHER, effective November i, 1994, the Board of theRail Construction Corporation is hereby replaced with a newlyestablished Construction Committee of the MTA Board to be comprisedof 5 members of the MTA Board, appointed by the Chair, who shall bethe only voting members of the committee; and 3 ex officio members

selected on the basis of their experience and expertis e inconstruction (particularly rail construction), one appointed Board members~ representing the County of Los Angeles, one appointedby Board m~mbers representing the City of Los Angeles, ~nd oneappointed by Board members representing the League of CaliforniaCities, City Selection Committee;

RESOLVED FURTHER, that the MTA CEO be an exofficio member ofthe Construction Committee without voting rights;

RESOLVED FURTHER, that any MTA Board member or alte~ate whoserves on the Construction Committee be restricted from acceptingcampaign contributions from any firm doing work or bidding oncontracts to do work on any MTA projects which are reviewed by oracted upon by the Construction Committee.