Los Angeles County

Metropolitan Transportation Authority

One Gateway Plaza

Los Angeles, CA gooiz-z95z

zi3.9zz.2000 Tel
metro.net

Metro
PLANNING AND PROGRAMMING COMMITTEE
FEBRUARY 18, 2015

SUBJECT: FY2014-15 JOINT MANAGEMENT COUNCIL APPROVED CAPITAL

PROJECTS FUNDING
ACTION:

APPROVE JOINT MANAGEMENT COUNCIL FY 2014-15 FUNDING

FOR UNION STATION ROOF, HVAC AND RESTORATION PROJECTS

RECOMMENDATION
1. Approve the funding to Joint Management Council to reflect the programming of
funds as follows consistent with the Board approved FY 2014-15 Budget for Capital
Improvement Projects (CIP)for Roof, HVAC and Restoration of Los Angeles Union
Station.
Roof
HVAC
Restoration

$7,080,000
$5,376,000
$8,500,000

(CIP 210136)
(CIP 210138)
(CIP 210139)

2. Amend the FY2015 budget to add $7,505,687 to cost center 2210 with Prop C 40%
funding to fund these actions.
ISSUE
The Joint Management Council(JMC)was created to act as the exclusive entity to
direct the management and operation of the common areas of the Gateway property
and Union Station. Current members of the JMC are Metro, as fee owner of the
Gateway property and Union Station, Metrolink and Amtrak, as operators of major rail
facilities located at Union Station.
The JMC entered into a property management agreement with Morlin Asset
Management (Morlin), wherein Morlin annually submits operating and capital
improvement budgets. These budgets are reviewed by Metro and modified or
approved, as necessary. Under the terms of the property management agreement, the
members fund their respective share of the capital improvement budget. As owner of
Union Station, Metro's share of the JMC capital improvement budget is 100%. A portion
of such costs may be recouped through the Common Area Maintenance charges(CAM)
to each of the users/tenants of the property. The foregoing amounts for the above
capital projects have been approved by the Metro Board of Directors as part of the

Metro capital improvements budget. The projects are now in a position to move
forward. Transfer of the funds to the JMC for implementation is now required to meet
the Board's directives for these programs.
DISCUSSION
These capital improvement programs are essential to the maintenance and operation of
Los Angeles Union Station. The roof is 75 years old and is no longer water tight. It is
not possible to patch or repair in sections. There is no heating or air conditioning
system in the building. The building has been so modified over the 75 year history, that
the natural flow of air originally allowed for, is no longer possible. Additionally, the
standard of comfort required by today's population is such that an HVAC system is a
necessity. A further need for the HVAC is to provide for the future restaurants, retail
tenants and programming of cultural events, exhibits and entertainment on the property.
The funding is required to restore the property from decades of neglect to its position as
a national icon and representative image of Metro, on a national and international scale.
Once the Board approves this action, Metro will provide funding to the JMC for the JMC
capital improvement budget.
DETERMINATION OF SAFETY IMPACT
Approval of funding to JMC does not have an adverse impact on the safety of Metro's
patrons or employees.
FINANCIAL IMPACT
Funding for these capital projects is from Prop C Discretionary 40% Funds. There is no
financial impact based on this action as the Life of Project for these three capital
projects was approved by the Metro Board.
Since these are multi-year projects, the Project Manager and Chief Planning Officer will
be responsible to budget the balance of funds in future years.
Impact to Budget
Funding for these projects is within the approved Life of Project of each capital project in
cost center 2210, account 50316 and projects 210136, 210138 and 210139,
respectively.
ALTERNATIVES CONSIDERED
There is no alternative to the recommendation if Metro desires to operate Union Station
at the Metro standard set for its transit customers and to maintain its property in a state
of good repair.

FY2014-15 Joint Management Council Approved Capital Projects Funding

Page 2

Prepared by:

Kenneth E. Pratt, Director Los Angeles Union Station Property

Management,(213)922-6288
Cal Hollis, Managing Executive Officer, Countywide Planning and
Development,(213)922-7319

FY2014-15 Joint Management Council Approved Capital Projects Funding

Page 3

Martha elborne, FAIA

Chief Planning Officer

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Arthur T. Leahy
Chief Executive Officer

FY2014-15 Joint Management Council Approved Capital Projects Funding

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