Memorandum Plans and Programs Committee February 12, 2013

Transcription

1 Memorandum Plans and Programs Committee February 12, 2013 Plans and Programs Committee: Commissioners Mar (Chair), Kim (Vice Chair), Breed, Campos, Yee and Avalos (Ex Officio) Lee Saage Deputy Director for Capital Projects Maria Lombardo Interim Executive Director Update on the Central Subway Project 2012 was a milestone year for the Central Subway project. On October 11, 2012 the San Francisco Municipal Transportation Agency (SFMTA) received the Full Funding Grant Agreement from the Federal Transit Administration (FTA), which represents the federal government s commitment of $942 million in New Starts funds to the project. All design work for the project has been completed and construction of the two utility relocation contracts is also complete. Work is underway on the tunnels contract, where the contractor has been working on the construction of the tunnel boring machine (TBM) launch box, headwalls for the Moscone and Union Square stations, and utility relocations. Drive of the first tunnel bore will commence in May 2013 and the second will follow a month later. In response to community concerns regarding the location of the TBM extraction shaft in North Beach, the project team is proceeding with an alternate plan to utilize the site of the Pagoda Palace Theater nearby, which is slated for demolition. As requested by Commissioner Chiu at the December Board meeting, we will provide an update on SFMTA s feasibility study of this option. Since this location is outside of the approved project limits, the additional cost, estimated by SFMTA to be in the neighborhood of $8.25 million, will be outside of the project s $1.578 million baseline budget. SFMTA will utilize sources other than Prop K or FTA New Starts funding to cover the increased costs. On October 22, SFMTA requested bids for the $735 million stations and systems package. Bids are due on March 19, The package has a DBE/SBE goal of 20%. Revenue service is scheduled for December We are seeking input and guidance from the Committee. This is an information item. The San Francisco Municipal Transportation Agency s (SFMTA s) Central Subway project will extend the T-Third light rail line (also known as the Initial Operating Segment of the Third Street Light Rail Project) north from King Street along Fourth Street, entering a tunnel north of Bryant Street, crossing beneath Market Street, and running under Stockton Street to Stockton and Washington Streets. A surface station will be provided near Brannan Street, and underground stations will be located at Yerba Buena/Moscone Center, Union Square, and Chinatown. The Central Subway was one of the major capital projects in the Prop B program that was grandfathered into the Prop K Expenditure Plan. On March 30, 2010, through Resolution 10-51, the Authority Board adopted a Baseline Budget, Schedule and Funding Plan for the Central Subway project and subsequently adopted an amended funding plan on February 15, 2011, through Resolution On October 11, 2012 the SFMTA received the Full Funding Grant Agreement from the Federal Transit Administration (FTA), which represents the federal government s commitment of $942 million in New Starts funds to the project. All design work for the project has been completed. Construction started in January 2010 and is scheduled to be completed in March 2018, with revenue service starting in December M:\PnP\2013\Memos\02 Feb\Central Subway Update\Central Subway Update Feb 13 PnP.docx Page 1 of 5

2 The purpose of this memorandum is to brief the Plans and Programs Committee on the status of the project and, as requested by Commissioner Chiu at the December Board meeting, provide an update on the status of the Pagoda Palace Theater option for extraction of the tunnel boring machines in North Beach. Cost: The Baseline Budget for the Central Subway project is $1.578 billion in year-of-expenditure dollars (Attachment 1). As of December 31, 2012, the project has incurred $292 million in costs against $464.6 million in allocations. The total cost contingency stands at $185.5 million, a favorable level above the current required minimum of $160 million. The current cost Forecast-at-Completion is depicted below. Central Subway Current Forecast-at-Completion (in millions) Preliminary Engineering $46.2 Final Design $83.7 Construction $1,080.6 Real Estate $37.4 Vehicles $26.4 Project Management $206.4 Other* $22.9 Unallocated Contingency $74.4 Forecast Cost at Completion Grand Total $1,578.3 Approved Baseline Budget Total $1,578.3 *Other includes legal, permits, review fees, survey, testing, investigation, inspection and startup Schedule: As shown in the project s Master Schedule (Attachment 2), revenue service on the Central Subway is scheduled to commence on December 26, The controlling critical (longest) path currently starts with the procurement phase of the stations and systems contract, proceeding through the excavation and construction of the Union Square/Market Street Station (UMS), followed by UMS commissioning, and finally through systems construction and commissioning and pre-revenue activities. Construction of the Chinatown station is close to the critical path. The schedule contingency on the critical path is 5.8 months, which is below the FTA s recommended minimum schedule contingency level of 10 months. The reduction of schedule contingency in the past few months is the result of delaying the award of the Chinatown station contract in order to combine all the stations and systems into a single contract. This single contract will facilitate the construction of the stations and systems by eliminating external interfaces and allow the contractor to work more efficiently, which SFMTA expects will result in cost savings to the project. A list of major upcoming milestones for the project is shown on the next page. M:\PnP\2013\Memos\02 Feb\Central Subway Update\Central Subway Update Feb 13 PnP.docx Page 2 of 5

3 Open Stations and Systems contract bids March 2013 Notice to Proceed for Stations and Systems contract May 2013 Start Tunnel boring with TBM May 2013 Tunnels substantial completion April 2015 Complete Yerba Buena/Moscone station July 2017 Complete Chinatown station October 2017 Complete Union Square/Market Street station October 2017 Substantial completion of Systems contract January 2018 Startup and commissioning begins July 2018 Revenue service December 2018 Design: Final Design was completed in October It was delivered under three contracts: DP1- Tunnels, DP2-Stations, and DP3-Systems. Construction: The project is being delivered in four construction packages. Three contracts have been awarded: Utility Relocation 1, Utility Relocation 2, and Tunnels. Both utility relocation contracts have been completed and work is underway on the Tunnels contract. The Stations and Systems contract was advertised for bids in October 22, 2012, with bids due on March 19. The Tunnel contract was awarded in June 2011, to the Joint Venture of Barnard/Impregilo/Healy in the amount of $233.9 million, $13 million below the engineer s estimate. It consists of 1.5 miles of twinbore tunnels underneath Fourth Street and Stockton Street, from I-80 to North Beach. The contractor has ordered the TBMs from Robbins, headquartered in Solon, Ohio. They will be arriving at the site in March 2013 for assembly. Boring of the Tunnels will commence in May Since receiving the Notice-to-Proceed from SFMTA in December 2011, the contractor has been working on the construction of the TBM launch box, headwalls for the Moscone and Union Square stations, and utility relocations. Pagoda Palace Theater Option: In response to community concerns regarding the location of the TBM extraction shaft in North Beach, the project team studied the feasibility of an alternate plan to utilize the site of the Pagoda Palace Theater nearby, which is slated for demolition, for extracting the TBMs. Having determined that the option is feasible, SFMTA is proceeding with its implementation. A sketch of this option is shown in Attachment 3. Because this option takes place on private property, impacts to the public right-of-way and to the public in general will be minimized. In addition to removing what has been an eyesore for the past 20 years, this option will eliminate the need for lane closures and construction disruptions on Columbus Avenue, in front of Washington Square. For the past two months, project staff has been intensely working on advancing this option. Demolition drawings for the Pagoda Theater are under development, in parallel with the Retrieval Shaft design drawings. Negotiations for the lease agreement for the site are underway and SFMTA expects to bring the final agreement to its Board shortly. The Special Use District (SUD) legislation enabling the use of the site was introduced at the Board of Supervisors on January 8. The SUD, together with the Conditional Use entitlement application, will be heard by the Planning Commission on February 14. It will be followed by action at the Board of Supervisors Land Use Committee on February 25. SFMTA M:\PnP\2013\Memos\02 Feb\Central Subway Update\Central Subway Update Feb 13 PnP.docx Page 3 of 5

4 has also applied for a CEQA addendum and a NEPA section 106 approval in order to environmentally clear the work. The State Historic Preservation Officer s (SHPO) review and approval is anticipated to take place in February Since the proposed location is outside of the approved project limits, the additional cost, estimated by SFMTA to be in the neighborhood of $8.25 million, will be outside of the project s $1.578 million baseline budget. SFMTA will utilize sources other than Prop K or FTA New Starts funding to cover the increased costs. Potential funding sources include operational savings, interest on state bonds, and reserves. Funding Plan: The Central Subway Funding Plan table included in Attachment 4 shows funding by project phase, source and status (i.e., allocated, programmed or planned) and reflects recent updates to the funding plan. As noted above, in October 2012, the Central Subway received the FFGA from the FTA, which is the principal funding milestone for the project as it commits $942 million in federal funds to the project and allows the project to enter the construction phase. This also fully committed the FTA s Fiscal Year 2011/12 allocation of $85 million to the project. The current expectation is that the FTA will provide $150 million per year for the project. However, annual amounts are subject to congressional appropriation; thus we will work with SFMTA and the Mayor s Office to ensure that we continue advocacy for the project at the federal level. Federal advocacy efforts are especially important given the automatic sequestration budget cuts that could hit the New Starts program in March if Congress fails to resolve debt limit/ceiling issues. In January 2013, the State allocated $117 million in Prop 1B PTMISEA funds to the project, which leaves $83 million of the total $308 million in Prop 1B PTMISEA funds unallocated. We will continue to work with SFMTA to ensure that those funds are considered for appropriation in the Fiscal Year 2013/14 State budget and further included in the earliest bond sale after the adoption of the State budget, most likely fall In September 2012, the California Transportation Commission (CTC) allocated the entire $61 million in Prop 1A High-Speed Rail Connectivity funds for the project, which was another significant milestone for the project and one that happened in no small part because of the political consensus related to the California High-Speed Rail Project that was driven, in the Bay Area, by the High-Speed Rail Memorandum of Agreement that the Authority helped to negotiate and then signed with the California High-Speed Rail Authority, the Metropolitan Transportation Commission and six other local and regional entities. In March 2012, through Resolution 12-44, the Authority Board made the Authority s existing commitment of $88 million in yet-to-be-programmed Regional Improvement Program (RIP) funds the second highest priority for San Francisco RIP funds after commitments to the Presidio Parkway are fulfilled. The Authority satisfied its RIP commitment to the Presidio Parkway in March 2012 when the CTC approved the 2012 State Transportation Improvement Program. The Central Subway is now the Authority s highest RIP priority and we anticipate that we will be able to begin programming RIP funds to the Central Subway in the 2014 STIP cycle. However, given the impacts that that the State budget issues have had on the STIP resulting in erratic and much lower funding levels than historic averages we believe it unlikely that all the RIP funds will be available when needed to meet the project s cash flow needs. Authority and SFMTA staff continue to work together on a regional, state, and federal advocacy strategy to prioritize the project for future bond sales, RIP funds, and New Starts funds. Both staffs are also working with the MTC and the San Francisco Controller s Office to determine the timing and mechanism through which bridge funding for the state and federal funds could be provided in the event funds are not available when needed to meet the project s cash flow needs. This is an information item. M:\PnP\2013\Memos\02 Feb\Central Subway Update\Central Subway Update Feb 13 PnP.docx Page 4 of 5

5 None. This is an information item. The CAC will be briefed on this item at its February 27 meeting. None. This is an information item. None. This is an information item. Attachments 1. Central Subway Baseline Budget (Updated July 2012) 2. Central Subway Summary Master Schedule (As of December 2012) 3. Pagoda Palace Theater Option 4. Central Subway Baseline Funding Plan (Updated February 2013) M:\PnP\2013\Memos\02 Feb\Central Subway Update\Central Subway Update Feb 13 PnP.docx Page 5 of 5

6 Attachment 1 CENTRAL SUBWAY MAJOR LINE ITEM BUDGET ENTIRE PROJECT Major Line Item Baseline Budget (March 2009) Current Budget (July 2012) Deviation No. CS phase 1 Planning Planning/Conceptual Engineering 26,764,071 26,764,071 2& Envir Planning/Conceptual Engineering Public Agencies 23,522,371 23,522,371 3 Environmental Studies (PA&ED) 1,972,000 1,972,000 (blank) (blank) Subtotal Planning/Conceptual Engineering/Environmental 52,258,442 52,258,442 4Design PS&E Design Package 1 Contract 4,983,728 4,983,728 5 Design Package 1 Public Agencies 1,018,476 1,018,476 6 Design Package 2 Contract 31,094,690 31,094,690 7 Design Package 2 Public Agencies 6,323,395 6,323,395 8 Design Package 3 Contract 12,000,000 15,320,801 (3,320,801) 9 Design Package 3 Public Agencies 3,192,185 3,192, Project Control Contract "PCC" 5,000,000 5,000, Public Art Final Design 1,976,264 (1,976,264) (blank) (blank) Subtotal Design PS&E 63,612,474 68,909,539 (5,297,065) 12 Design PM Program Management Contract Design Phase 35,000,000 17,531,889 17,468, Program Management Public Agencies Design 7,734,713 4,365,584 3,369, Other Direct Cost "ODC" 2,037,889 2,431,050 (393,161) 15 Const. Admin Legal; Permits & Fee 4,986,050 4,962,773 23, Insurance Excess Design Liability 6,000,000 7,019,120 (1,019,120) (blank) (blank) Subtotal Design PM 55,758,652 36,310,417 19,448, Early Utilities MOS CP01 11,249,591 9,273,939 1,975, Construction Utilities MOS CP01 Contingency 2,051,393 (2,051,393) 19 (LONP) Utilities MOS CP01 Form B (3,798,016) 3,798, Utilities MOS CP01 Change Mod ,731,118 (1,731,118) 21 Utilities CP02 22,228,098 16,832,650 5,395, Utilities CP02 Contingency 4,208,162 (4,208,162) 23 Utilities CP02 Form B (5,561,787) 5,561, Tunnel Boring Machine Equipment (TBM) 26,000,000 35,304,581 (9,304,581) 25 Construction TBM Site Work / Launch Box 38,300,000 36,115,025 2,184, Surface, Trackwork & System C3 Equip 487,972 (487,972) (blank) (blank) Subtotal Early Construction 97,777,689 96,645,037 1,132, Early Program Management Contract Adv Const Support 17,547,834 (17,547,834) 28 Construction Program Management Public Agencies Adv Const Support 3,369,129 (3,369,129) 29 (LONP) PM Design Package 1 Construction Support 759,697 (759,697) 30 Design Package 1 Public Agencies 494,326 (494,326) 31 Const. Admin. Survey, Testing, Investigation 3,852,918 (3,852,918) 32 Const. Admin. Public Agencies 5,871,339 (5,871,339) 33 Insurance OCIP 4,000,000 (4,000,000) (blank) (blank) Subtotal Early Construction PM 35,895,244 (35,895,244) 34 Construction Design Package 1 Construction Support 1,516, , , Design Package 1 Public Agencies 986, , , Design Package 2 Construction Support 8,855,266 8,855, Design Package 2 Public Agencies 6,043,919 6,043, Design Package 3 Construction Support 8,000,000 4,895,593 3,104, Design Package 3 Public Agencies 3,056,363 3,056, Program Management Contract Construction Phase 104,000, ,000, PM Public Agencies Construction Support 22,592,486 25,128,819 (2,536,333) 42 Other Direct Cost "ODC" 5,952,513 4,540,962 1,411, Const. Admin Project Control Contract "PCC" 5,855,281 5,000, , Const. Admin Legal; Permits & Fee 4,986,050 4,962,773 23, Const. Admin. Survey, Testing, Investigation 14,957,556 11,035,118 3,922, Const. Admin. Public Agencies 27,552,982 21,681,643 5,871, Construction Tunnel 197,868, ,562,097 19,306, Union Square/Market Station UMS 228,839, ,041,301 (5,201,366) 49 Chinatown Station CTS 182,059, ,820,531 (11,760,547) 50 Moscone Station MOS 118,263, ,894,708 1,369, Surface, Trackwork & System 134,291, ,676,876 6,614, Fare Collection Equipment 2,400,000 2,400, Utility Connection Fees 14,858,685 14,891,316 (32,631) 54 Insurance OCIP 6,000,000 (6,000,000) 55 Public Art 14,500,000 12,523,736 1,976, Unallocated Contingency 117,444, ,333, , Start Up 22,672,966 22,524, ,174 (blank) (blank) Subtotal Construction & Procurement 1,247,555,453 1,227,118,252 20,437, Procurement Vehicle Procurement 26,559,876 26,385, , ROW Real Estate 30,000,000 30,000, ROW Real Estate Relocation 4,777,416 4,777,416 (blank) (blank) Subtotal ROW 34,777,416 34,777,416 (blank) (blank) Grand total 1,578,300,000 1,578,300,000

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9 Attachment 4 Central Subway Full Funding Plan Updated: February 2013 Project Phases 1 Source 2 Type Status PE/ENV PS&E ROW CON Total by Status TOTAL 5309 New Starts 3 Federal Allocated $36,936,758 $55,478,726 $0 $85,000,000 $177,415,484 Programmed $0 $0 $0 $0 $0 $942,200,000 Planned $0 $0 $0 $764,784,516 $764,784,516 Allocated $6,025,000 $16,746,577 $0 $18,253,423 $41,025,000 CMAQ 4,5 Federal Programmed $0 $0 $0 $0 $0 $41,025,000 Allocated $0 $3,020,243 $17,388,707 $135,968,860 $156,377,810 Prop 1B-SFMTA 6 State Programmed $0 $0 $0 $68,914,190 $68,914,190 $225,292,000 Allocated $0 $12,223,853 $17,388,707 $38,622,498 $68,235,058 Prop 1B- MTC 6 State Programmed $0 $0 $0 $14,264,942 $14,264,942 $82,500,000 Allocated $0 $0 $0 $0 $0 RIP 4,7 State Programmed $0 $0 $0 $0 $0 $88,000,000 Planned $0 $0 $0 $88,000,000 $88,000,000 Allocated $0 $0 $0 $61,308,000 $61,308,000 Prop 1A High Speed Programmed $0 $0 $0 $0 $0 Rail Connectivity 8 State $61,308,000 Allocated $5,000,000 $9,000,000 $0 $0 $14,000,000 TCRP State Programmed $0 $0 $0 $0 $0 $14,000,000 Allocated $4,142,132 $27,418,669 $0 $92,414,199 $123,975,000 Prop K 4 Local Programmed $0 $0 $0 $0 $0 $123,975,000 Allocated $52,103,890 $123,888,068 $34,777,414 $431,566,980 $642,336,352 Totals Programmed $0 $0 $0 $83,179,132 $83,179,132 $1,578,300,000 Planned $0 $0 $0 $852,784,516 $852,784,516 $52,103,890 $123,888,068 $34,777,414 $1,367,530,628 $1,578,300,000 M:\PnP\2013\Memos\02 Feb\Central Subway Update\Attachment 4 central Subway Funding Plan Page 1 of 2

10 Attachment 4 Central Subway Full Funding Plan Updated: February Acronyms used for project phases include: PE/ENV - Preliminary Engineering/Environmental Documentation, PS&E - Plans, Specifications & Estimates or Final Design, ROW - Right of Way, CON - Construction. For the purposes of this table, construction includes procurement (e.g. vehicles). 2 Acronyms used in this column include: CMAQ - Congestion Mitigation and Air Quality Improvement Program, MTC - Metropolitan Transportation Commission, RIP - Regional Improvement Program, SFMTA - San Francisco Municipal Transportation Agency, and TCRP - Traffic Congestion Relief Program. 3 The Full Funding Grant Agreement was executed on October 11, 2012 and is the FTA s official commitment of the $942.2 million in federal New Starts funds to the project and is a necessary milestone that allows the project to move forward into the major construction phase. 4 In January 2008, the Authority working with MTC and SFMTA brokered a fund swap of $4 million in FY 2008/09 RIP funds programmed to Central Subway for an equivalent amount of CMAQ funds for the subject project. The swap gave SFMTA quicker access to the funds than would have been possible with the delay in available RIP funds. The $4 million in CMAQ funds count toward the Authority s RIP commitment to the project. The RIP funds helped MTC address eligibility issues for a regional project. In November 2008, the Authority approved a swap that traded $2,025,000 in FY 2008/09 Prop K funds for an equivalent amount of CMAQ funds to help SFMTA meet timely use of funds deadlines for three separate Regional Bike and Pedestrian Program (RBPP) projects (Res ), without any negative impacts to the Central Subway Program. 5 In September 2010, SFMTA brokered a fund swap of $17.5 million in CMAQ funds from AC Transit for an equivalent amount of Section 5307 federal transit funds. SFMTA then released an equivalent amount of Prop 1B funds from the Central Subway project to transit rehabilitation projects that were previously funded with the swapped Section 5307 funds and used the CMAQ funds for the Central Subway project. In February 2011, SFMTA brokered a similar $17.5 million CMAQ/Prop 1B fund swap with AC Transit. 6 Both SFMTA and MTC have committed to dedicating these Prop 1B funds to the project. However, availability of Prop 1B funds is subject to the state's ability to sell bonds and therefore SFMTA will need to build some flexibility into the project's funding plan to account for possible delays. At its January 18, 2011 meeting the SFMTA Board committed to programming a total of $325.5 million of its Prop 1B funds to the project. That amount was reduced by $17.5 million to reflect the February 2011 CMAQ/Prop 1B swap referenced in footnote #5. 7 In November 2005, through Resolution 06-30, the Authority committed to prioritizing its RIP funds to four major capital projects, including the Central Subway. This commitment stems from the 2001 Regional Transportation Plan. In March 2012, through Resolution 12-44, the Authority Board made the Central Subway the second highest priority after the Presidio Parkway (required by the State) for future RIP funding cycles until those commitments are fulfilled. The RIP commitment to Presidio Parkway was completed with adoption of the 2012 State Transportation Improvement Program, so Central Subway is now the highest priority for RIP funds. The Authority and SFMTA are working together to find ways to ensure that funds are available to the project when needed since it is not likely that all of the RIP funds will be available in time to meet the project's cash flow needs. 8 At its January 18, 2011 meeting the SFMTA Board committed to programming the entire share of Prop 1A funds ($ million) to the project. These funds were allocated to the project by the CTC on September 27, M:\PnP\2013\Memos\02 Feb\Central Subway Update\Attachment 4 central Subway Funding Plan Page 2 of 2