Overruns on Subway Hit $19 Million : Transit: Several on MTA panel term excesses outrageous. Officials blame inexperience and unforeseen problems.

Transit officials paid $19 million in cost overruns for two subway stations--a result of more than 200 change orders that were requested during construction of the first leg of the Red Line.

The Pershing Square and Civic Center subway stations, originally projected to cost $32 million, ended up costing $51 million--a nearly 60% increase that drew heated criticism Wednesday when the figures were disclosed during a Metropolitan Transportation Authority board meeting.

“If this was in the private sector, somebody’s head would be rolling,” said MTA board member Larry Zarian. “That much in change orders--it boggles my mind.”

The final tally represents money already approved and paid over the years to Morrison-Knudsen Corp., which oversaw construction. The disclosure poses yet another embarrassment for transit officials, who paid contractor Tutor-Saliba/Groves $89 million--nearly 45% above Tutor’s original bid--to correct design flaws on the Civic Center station and adjoining tunnels.

In all, the Red Line’s first 4.4-mile segment cost $1.45 billion, or $200 million more than the expected price tag, said Ed McSpedon, president of Rail Construction Corp., the construction arm of the MTA. In part, the increase was due to about 5,000 changes that were made after contracts had been issued, he said.

“Digging beneath the street, you can’t afford to know everything, you can’t investigate every square inch of ground so you have a significant amount of unknowns,” McSpedon said.

McSpedon noted that the city’s Convention Center and Central Library also suffered significant cost overruns. The still-incomplete expansion of the Los Angeles Convention Center already has exceeded estimates by $27.3 million, while the renovation of the library has cost more than $200 million thus far, double the early estimates.

During the course of subway construction, which began in 1987, workers encountered a number of unforeseen problems--some of which can be chalked up to inexperience in building the city’s first modern subway, McSpedon said. The ground, for instance, turned out to be hard in some places that officials thought would be soft, he said.

In most cases, the changes were due to circumstances that had not been anticipated. For example, because of new regulations protecting workers, officials spent $236,859 on a temporary ventilation system. And, concerned that visually impaired passengers might not perceive the subway platform edge, officials spent $360,421 on platform edging that would act as a warning.

When transit officials discovered major leaks riddling the stations and tunnels, they ordered grouting, which cost $1.9 million. Some of the money spent fixing leaks may be refunded, McSpedon said.

The $19-million cost overrun includes $3 million spent at Union Station that was a result of work needed to accommodate the opening of the Metrolink commuter train. It began service in October.

At the MTA board meeting Wednesday, several members expressed outrage at the cost overruns.

“I don’t know of a project in the private sector that goes up 65% and you say it’s OK,” said Zarian, mayor of Glendale.

“These incredible cost overruns indicate the baby is sick,” said Marv Holen, an alternate member on the board. “If we don’t start over again with the budget, we’ll fall into a financial black hole.”

McSpedon and other officials involved in the subway project said numerous lessons were learned after construction of the first segment, which runs between Union Station and MacArthur Park. Of the 4.4 miles of track, passengers actually ride on 3.8 miles--the rest leads to and from train yards.

“We are spending a lot of time and energy trying to decrease the frequency of changes on (the portions of the subway currently under construction) and we are having a lot of success in that regard,” McSpedon said. “We’ve done a lot to make it better in the future.”

Franklin White, new head of the MTA, vowed to aim for construction estimates that bore more resemblance to actual costs.

The entire 22-mile subway, scheduled to be completed by the year 2000, is expected to cost $5.3 billion. As currently planned, the Red Line will branch off in three directions--running between downtown and North Hollywood, Pico-San Vicente and East Los Angeles.

In an unrelated action Wednesday, the MTA board approved the start-up of a $25-million loan program for businesses and property owners affected by subway construction. The program, which had been approved in October, had never gotten off the ground.

MTA board members also voted to continue the 25-cent fare for subway passengers at least until the fall, said MTA spokeswoman Stephanie Brady. Bus riders and Metrolink passengers can transfer free to the subway through July 31.

Subway Costs Transit officials paid about $19 million in cost overruns for two subway stations--a result of more than 200 change orders that were requested during construction of the first leg of the Red Line. Among the change orders at the Pershing Square and Civic Center subway stations (the overruns also included some work done at Union Station): DOLLAR AMOUNT: CHANGE ORDER: $165,421 Replacement of granite platform edge with precast platform edge with corrugation on top to act as edge warning for handicapped at Civic Center and Pershing Square stations. $187,683 Stair balustrade and mezzanine railing modifications at Pershing Square station. $110,671 Labor to install redesigned supports and seismic bracing for overhead ducts in train room at Civic Center station. $115,688 Demolition of stairway No. 13 at southwest entrance at Civic Center station. $236,859 Providing temporary ventilation for system at Civic Center station. $290,353 Construction of northeast steps to court of flags at Civic Center. $195,000 Systemwide procurement of precast concrete-edge pavers and warning strips. $99,952 Restore southwest entrance finishes at Civic Center station. SOURCE: Metropolitan Transportation Authority