Increase in Funds for Metro Rail Voted

The Los Angeles County Transportation Commission voted Wednesday to substantially increase its financial obligation for federal funding shortfalls and cost overruns on the proposed Metro Rail project.

And, signaling yet another funding dispute for the on-again, off-again multibillion-dollar project, three commissioners sharply criticized a move on the Los Angeles City Council to limit its share of the long-term financial commitments to the project.

Chairman Deane Dana warned that any action by the City Council to limit its financial liability for the project--thereby increasing the commission’s potential costs--would “possibly jeopardize the whole contract. . . .”

Tentative agreements call for the commission and city to share equally the cost of budget overruns for the first 4.4-mile leg of the project, which would be built at a cost of $1.25 billion and be operated by the Southern California Rapid Transit District. The approximately 19-mile commuter line, when and if completed, would run between downtown and the San Fernando Valley.

The proposed agreements call for the Transportation Commission and the city to assume about $120 million in overrun liability through 1993, with the possibility that millions more could be required each year for an indefinite period.

Staffs of the two agencies have estimated that cost overruns might be in the $45-million to $76-million range but could go higher.

But Councilman Zev Yaroslavsky, a Metro Rail supporter, has warned that the city could become a “deep pockets” for the project and is proposing to limit the city’s obligation for the first segment to $120 million for possible cost overruns and $34 million for construction.

The council is scheduled to vote on the funding agreement Friday, and Yaroslavsky and Council President Pat Russell both said there appear to be enough votes to impose a cap on city participation.

Should that happen, the funding agreement would have to go back to the commission for reconsideration.

Commissioner Blake Sanborn said a limit on the city’s participation would “deliver a message that states the city is not totally involved, not a full partner.”

Rep. Henry A. Waxman, D-Los Angeles, a Metro Rail critic, won a surprise victory last week when he persuaded the House to tentatively adopt an authorization bill amendment that strikes out funds for the project. Metro Rail supporters, including Mayor Tom Bradley who was in Washington on Tuesday, have been lobbying vigorously to reverse the vote, pointing in part to the strong, united local commitment to the project.

In addition to its previously agreed-to $176.6-million contribution toward construction costs, the commission pledged to cover a $203.7-million potential shortfall in federal funds, as well as the possible cost overruns.