RTD Gives In, Compromises on Control of Metro Rail Project

After weeks of bickering, the Southern California Rapid Transit District Board of Directors on Thursday agreed to a compromise plan that resolves its dispute with the Los Angeles County Transportation Commission over which agency will control Metro Rail construction.

The 6-4 vote came after some intense behind-the-scenes negotiating convinced a majority of the RTD board that it would lose all control over development of the 17.2-mile subway unless the compromise was approved.

The agreement--which still must be ratified by the commission--turns all Metro Rail design and construction over to a new third agency, the Rail Construction Corp. This nonprofit corporation was created by the commission to supervise building of all rail transit projects in the county.

Commission officials hailed the RTD board’s vote as a significant step toward resolving differences between the two agencies.

“I am very pleased that the RTD has finally agreed to join the (Rail Construction Corp.),” said Commission Chairwoman Christine E. Reed. She said the agreement is “a step in the right direction,” and suggested it will help “bring together, under one agency, the management of all transportation programs in the county.”

Although the Metro Rail project was initiated by the RTD, the state Legislature subsequently created the commission to oversee all rail construction in the county. This authority also gives the commission control over the Metro Rail purse strings. The project is being built with federal, state and local money.

The RTD is building the $1.4-billion first phase of Metro Rail, tunneling 4.4 miles from Union Station to MacArthur Park. That part of the project is over budget and behind schedule, according to a commission audit.

In addition, the RTD had contracted with the commission to design and build the project’s second phase, extending the line 6.8 miles from MacArthur Park to Hollywood Boulevard and Vine Street. It was assumed that the district would also be in charge of building the final leg into North Hollywood sometime in the mid-1990s.

If Thursday’s RTD action is accepted by the commission, as expected, the RTD board will no longer be directly in charge of design and construction. That authority will go to the Rail Construction Corp.’s board.

According to the compromise, the RTD will be able to fill three of the six seats on the new corporation’s board. A seventh, tie-breaking board member will be selected jointly by the six members. Board members must all be experienced in developing big transit projects, according to the agreement.

Thursday’s vote was a defeat for RTD board President Gordana Swanson, who had fought to retain exclusive control of Metro Rail construction. She and her supporters feel the Rail Construction Corp. was formed by the commission to further its Metro Rail takeover plans.

“This is not a peace offering . . . it’s an abomination,” Swanson said of the compromise.

She accused the majority of caving in to bludgeoning tactics of the commission and warned that the compromise agreement is illegal because it does not have the approval of the city of Los Angeles and the federal government.

Los Angeles City Councilman Nate Holden sided with Swanson in testimony before the vote was taken. He told the RTD directors that the proposed agreement violates the existing agreements between the city and the commission and warned that “this illegal agreement” could stall the project and result in more cost overruns.

It was cost overruns and project delays in the first phase of construction that prompted the commission to step in and take more control over Metro Rail, commission officials said. When the RTD board initially refused to participate in these efforts, the commission voted to oust the RTD and take over the job.

Thursday’s action by the RTD board headed off that total takeover by the commission.

Under terms of the agreement, the RTD will not only have three seats on the Rail Construction Corp. board but also will continue to have a role in building the subway. The RTD’s Metro Rail staff will continue to work on design and construction of the project’s next phases, as contract employees assigned to the Rail Construction Corp., commission officials said.

The agreement calls for the new corporation to take over completion of the 4.4-mile first phase, as well as design and construction of the final stages of the project, Commission Executive Director Neil Peterson said.

The actions of the commission and the RTD must still be approved by the federal Urban Mass Transit Administration, which pays half of the project costs. UMTA officials have refused to take sides in the dispute, saying that the issue must be settled by the two agencies before second-phase construction money can be released.

While the immediate conflict over Metro Rail construction may be resolved by Thursday’s compromise, both agencies indicated that their basic disagreements are so deeply rooted that they can only be resolved by the Legislature.