RTD Lacks Financing for Valley Portion of Metro Rail

Despite assurances that construction will begin on the San Fernando Valley portion of Metro Rail in September, a top Southern California Rapid Transit District official Wednesday said his agency has yet to arrange funding to extend the subway beyond the 4.4 miles now under construction between downtown Los Angeles and the Wilshire District.

At the same time, the state legislative analyst recommended deferring construction of the Valley portion of Metro Rail, citing uncertainty over when--or if--there will be funds to link the Valley and downtown segments.

Albert Perdon, RTD’s acting assistant general manager of planning and communications, said the transit agency’s ability to begin construction of the Valley end of Metro Rail hinges on funding from the city, county or state--or all three.

The city, county, state and federal governments are sharing the cost of building the stretch between downtown and the Wilshire District. But there is no agreement among the agencies for funding the estimated $250-million to $270-million cost of Metro Rail between North Hollywood and Universal City. Furthermore, the federal government has made no commitment to fund the Valley portion of Metro Rail.

State Approval Needed

Last January, Perdon said RTD could use some of the $400 million provided by the state for Metro Rail to fulfill a requirement for beginning construction in the Valley. However, it was not clear until Wednesday that RTD would need to obtain approval of the state Transportation Commission to use those funds for Metro Rail construction in the Valley.

Commission Chairman William Bagley said in an interview Wednesday that he wants to study the issue further. He expressed concern about the state bearing the burden for funding construction of Metro Rail in the Valley.

And Los Angeles City Councilman Michael Woo, chairman of the council’s Transportation and Traffic Committee, said he doubts the city will provide funds for RTD to comply with the state requirement.

Perdon’s comments, made in an interview, came as it was learned that the state analyst has recommended the Legislature change the state law that requires construction of the Valley end of Metro Rail to begin within one year of its ground-breaking downtown, which was last Sept. 29.

‘Going Nowhere’

But state Sen. Alan Robbins (D-Van Nuys), who authored the 1984 law, said Wednesday the legislative analyst’s recommendation is “going nowhere.”

Robbins said the RTD’s need for funds “shouldn’t be a problem.” He said he supports providing funds for Valley subway construction from the $400 million already committed but not yet allocated by the state for the entire Metro Rail project. And, he added, members of the state Transportation Commission “have all indicated to me that they’re going to follow my lead on this issue.”

The Robbins law requires RTD to spend on the Valley portion of the subway 15% of the non-federal funds spent on construction downtown. That means RTD must spend $13 million on Metro Rail construction in the Valley in 1986-87 unless the law is changed.

RTD’s Perdon on Wednesday repeated his pledge that the transit agency intends to comply with the law unless it is changed.

However, Perdon said, “The district does not have the funds” to comply with the law.

“Everything we do depends on other agencies approving funds,” he said.

In a related development, Elizabeth G. Hill, a legislative analyst, has recommended that the Legislature change the 1984 law to require RTD to “reserve funds for San Fernando Valley Metro Rail construction in lieu of current requirements to commence such construction.” The recommendation was contained in an analysis of Gov. George Deukmejian’s proposed state budget.

The recommendation is a sign of growing political support for taking a second look at the current requirement for beginning construction of the Valley end of Metro Rail in light of uncertainty over the cost, route and funding sources for the project.

The staffs of the RTD, the Los Angeles County Transportation Commission and the Los Angeles city administrative officer have recommended that the Legislature consider changing the law because of developments that have occurred since its passage.

These developments include the need to reroute the line through the Fairfax District because of the discovery of underground methane gas along the original route and recent disclosures that the subway will cost $300 million to $1.2 billion more than the $3.3 billion previously estimated.

Defer Construction

Wayne Keithley, a member of the legislative analyst’s staff, said his office’s recommendation is consistent with the intent of Robbins’ law because it would set aside the money for building the Valley portion of Metro Rail. It would only defer construction until questions surrounding the cost, funding sources and route for the project are resolved.

“We just think it’s too early to commit money to construction,” Keithley said in an interview.

Robbins said so far no legislator has introduced a bill to change the requirement for starting construction on the Valley end of Metro Rail this year. Robbins said he is confident that he has enough political support to block any effort to change the law.

Any change in the law would have to come before the Senate transportation budget subcommittee, which Robbins chairs.

“All the legislative analyst has to do is get the bill past me and Senate President Pro Tem David Roberti and Assembly Rules Committee Chairman Tom Bane,” Robbins said. “All I can say on that score to whoever wants to try that battle--good luck!” Roberti and Bane are aligned with Robbins on Metro Rail in the Valley.

Not Needed Until 1995

Keithley said it is not critical to begin construction this year on the Valley end of Metro Rail. “Under the most optimistic scenario, it looks like these facilities will not be needed until 1995 or even later,” he said.

Robbins said, however, “If we don’t do actual construction, then we have nothing to guarantee us that Metro Rail is really going to come to the San Fernando Valley.”

Linda Bollinger, deputy director for transit development for the state Transportation Commission, said the commission staff is withholding a position on the legislative analyst’s recommendation until the RTD provides specifics on how it plans to comply with the state law, including how it proposes to fund construction of the Valley end of Metro Rail. The RTD has been asked to present such a plan at the commission’s May 29 meeting at the state building in Van Nuys.