Latest Update on Foothill Goldline Extension

Plans for the construction of the Foothill Gold Line light rail extension from Glendora to Montclair have been revised to compensate for anticipated unfavorable shifts in market conditions, the Foothill Goldline Authority announced this week.  Notably, the Authority detailed a proposed plan this week to deliver nearly 70% of the Foothill Gold Line light rail extension from Glendora to Montclair at least two years ahead of schedule and avoid tens of millions of dollars annually in market escalation and risk money proposed by the four design-build teams competing for the Glendora to Montclair Alignment contract; while increasing the budget for the 12.3-mile, six station light rail project by $570 million to a total project budget of $2.1 billion. The proposed plan is subject to environmental approval.

The sudden change of plans came after the receipt of bids by the four teams competing for the design-build contract. All four bids reflected a significant unfavorable shift in market conditions since the agency completed the project estimate two years ago. This coupled with an economic study which identified current unknowns and risk within the construction industry locally and nationally resulted in bids for the long-term construction project coming in hundreds of millions of dollars over the project estimate and secured funding available (see story below about economic conditions impacting the project).

The revised plan proposes to revise project construction to deliver the first eight miles of the 12.3-mile light rail extension (including delivery of the Glendora, San Dimas and La Verne stations) in 2024 - at least two years ahead of the original schedule; while working to secure the additional funding necessary to complete the project to Montclair by 2028 within the ongoing procurement.

The Authority cited anticipated benefits of this proposed plan:

• Completion of the majority of the Glendora to Montclair light rail extension at least two years ahead of the original schedule, including: delivery of 80% of the freight system relocation, 72% of the structures, 65% of the grade crossings, and three new light rail stations.
• Saving tens of millions of dollars annually in escalation being charged at historically high market rates, by eliminating years off the original construction schedule.
• Isolating costs associated with building the vastly more complicated and risk-burdened eastern portion of the project that shares a corridor with Metrolink.
• Providing the Construction Authority flexibility for procuring the eastern portion of the project to ensure the best price, including the potential to complete the extension to Montclair as part of the ongoing procurement and the opportunity to re-procure it separately if market conditions improve.

The good news is that the new plan will not alter the current procurement process, but merely shifts the contract option included in the Alignment Contract to La Verne.  This will allow the full project to Montclair to be delivered within the ongoing procurement if funding is secured within two years of contract award. The Construction Authority is requesting revised bids that separate the price to build the full project to Montclair, as well as a price to build the first eight miles to La Verne.

It is anticipated however that the need to conduct the necessary environmental review associated with the La Verne Station becoming a possible interim terminus if full funding is not secured in time to build to Montclair during this contract, will delay any award of the design-build contract by approximately six months, until July 2019.


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