BOARD BRIEFING SUMMARY

SUBJECT: AGENDA ITEM #:

AGENDA DATE:

DEPARTMENT: PRESENTER:
SUMMARY:

Outstanding MRE Cost and/or Real Estate Issues with COH
5/22/14
Engineering and Capital Projects Roberto Trevio
The METRO Rail Expansion (MRE) project has the following 5 cost and/or Real Estate issues that remain to be resolved with
the City of Houston:
1) Cost of Monitoring Waterlines: The COH expects METRO to assist with the cost associated with the installation and/or
monitoring of the leak detection systemon the COH's large diameter (84 and 66 inch) water transmission lines located near the
METRO Light Rail Lines.
2) COH Permit Fees: METRO and the COH need to recalculate the City Feefor permits, plan reviews, etc. for the MRE
Project. The METRO/COH Consent Agreement reads as follows:
In lieu of charging METRO for City permit fees, permit coordination, inspection fees, Project Plan review, Lane Closure Fees
and any other fee for City approval associated with the Project (City Fees), the City shall assign a workforce of City employees
or contract for professional services for the Project (METRO Workforce) and METRO shall pay the city the annual lump sum
amount of $600,000 in equal quarterly installments for all City Fees on the basis of Phase II constructed value of $600 million.
Quarterly payments shall begin within 30 days of countersignature of this Agreement and shall continue for 5 years or the actual
period of construction, whichever is greater. If construction continues past 5 years or exceeds a total of $600 million in total
constructed value, the parties will negotiate in good faith to recalculate the City Fee.
Quarterly payments shall begin within 30 days of countersignature of this Agreement and shall continue for 5 years or the actual
period of construction, whichever is greater. If construction continues past 5 years or exceeds a total of $600 million in total
constructed value, the parties will negotiate in good faith to recalculate the City Fee."
Original projected fee to COH (based on $600Mover 5 years) was $3,000,000 or one half of 1%. By using the same formula
and the J uly 2013 in-ground cost of $750,614,737, METRO cost for fees should be $3,753,074. To be calculated at project end.
3) East End Clock Tower: During demolition of an existing structure on the East End Line, a request was made to METRO to
preserve a clock tower on the facility. The clock tower was removed and turned over to the City Parks and Recreation
Department. METRO provided a signed agreement to fund $83,500 to a non-profit organization which was to be selected by
the community.
4) Hernandez Tunnel Property: CRV Hardy Yards and the COH has requested the use of METRO's property on Main Street
over the Hernandez Tunnel. Their project entails shortening the tunnel to bring Main Street up to an elevation whereby it will
intersect with Burnett Street. The property was originally purchased by METRO fromUPRR.
METRO and the City of Houston has signed an Access and Use Agreement. METRO acquired the Hernandez Tunnel for
$476,000.00. The proportionate square foot value of the corner clips is $11,245.00.
Engineering & Capital Projects
Outstanding METRO Rail Expansion Cost and
Real Estate Issues with City of Houston

May 2014

The METRO Rail Expansion Project has the
following four cost and/or real estate issues that
remain unresolved with the City of Houston:

1. Cost associated with Installation of
Monitoring System on Large Diameter
Waterlines near METRO Rail Lines
2. City of Houston Permit Fees
3. East End Clock Tower
4. Hernandez Tunnel Property




2
Installation of Monitoring System:
At Issue: To what degree should METRO pay to
install and/or monitor the leak detection system
on the City of Houstons large diameter water
transmission lines located near the Light Rail
Lines.
66 inch waterline along Richmond Avenue
(University Line)
84 inch waterline along Harrisburg Boulevard
(East End Line)


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Installation of Monitoring
System Contd.
CITY OF HOUSTON POSITION:
City of Houston staff and METRO staff appeared before City
Council on December 14, 2007 to discuss the 66 inch waterline
along Richmond and METROs University Corridor. The City of
Houston conclusion was that the potential risks of a rail line in
proximity to large diameter waterlines could be mitigated if a
condition assessment was performed and a monitoring system
placed prior to construction activities.
Based on review of East End Corridor plans in August 2009 the City
of Houston expedited the installation of a monitoring system and
allowed METRO to commence construction in its vicinity.
The City of Houston believes that METRO staff agreed in principle
to pay for the engineering and construction cost of $635,618 for the
installation of a monitoring system on the 84 inch line along the
East End Line in a March 24, 2011 meeting.
The City of Houston also requests that METRO pay $1,668,868 in
long term monitoring cost of the system. Both parties agreed to
further discussions on the long term monitoring costs.

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Installation of Monitoring System
Contd.
METROs POSITION
A November 6, 2007 engineering study by Aviles Engineering
Corp. which evaluates both live and dead loads on the 84
waterline adjacent to portions of METROs East End Light Rail
Line concludes that the Houston LRV should not have an
adverse impact on the existing 84-inch diameter water line.
METRO staff letter to the City of Houston in response to the May
24
th
meeting states that the engineering and construction costs
have been reviewed and necessary approvals cannot proceed
until long term monitoring costs are resolved.
METRO staff does not have the authority to commit to these
costs without Board approval.
The are no provisions in the City of Houston-METRO Consent
Agreement that require METRO to provide condition
assessments or monitoring systems.

5
City Permit Fee Negotiations
The METRO/City of Houston Consent Agreement
requires negotiation of permit fees should the project
continue past 5 years or exceed a total of $600 million in
constructed value:
In lieu of charging METRO for City permit fees, permit
coordination, inspection fees, Project Plan review, Lane Closure
Fees and any other fee for City approval associated with the
Project (City Fees), the City shall assign a workforce of City
employees or contract for professional services for the Project
(METRO Workforce) and METRO shall pay the City the annual
lump sum amount of $600,000 in equal quarterly installments for
all City Fees on the basis of Phase II constructed value of $600
million. Quarterly payments shall begin within 30 days of
countersignature of this Agreement and shall continue for 5
years or the actual period of construction, whichever is greater.
If construction continues past 5 years or exceeds a total of $600
million in total constructed value, the parties will negotiate in
good faith to recalculate the City Fee.

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City Permit Fees Contd.
The METRO Rail project has now run longer than 5 years and
exceeded $600 million in constructed value.

Original projected fee to City of Houston (based on $600M over 5
years) was $3,000,000 or one half of 1%.

By using the same formula and the July 2013 in-ground cost of
$750,614,737; METRO cost for fees should be $3,753,074.
METRO contends that such things as Light Rail Vehicles, Design,
Professional Services, Non-Civil Systems, and City of Houston
Betterments should not be considered in-ground construction costs
and therefore should not be included in the recalculation of the City
Fee
The City of Houston actual costs to date exceed $10M and
forecast costs to exceed $11M at project completion.
Final re-calculations should be completed at the end of the project
based on final in-ground construction costs.


7
East End Clock Tower
In September of 2009,
Metro signed an agreement
with the City of Houston to
pay $83,500 to assist in the
preservation of a clock-
tower on the East End Line.
Since that time the clock
tower has been in storage.
To date the City of Houston
has not executed the
agreement.
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Clock Tower Contd.
History:
In 2009 during the demolition of an existing structure at 4819
Harrisburg for the Metro Rail Expansion Project, the community
requested an old, but non-historic clock tower that was
attached to the facility, be preserved.
Thru a letter agreement from METRO to Houston Parks &
Recreation Department, the clock tower was dismantled and
turned over to the City Parks & Recreation Department.
METRO provided a signed agreement to fund $83,500 to a
non-profit which was to be chosen by the community. It was
assumed, although not stated in the agreement that the money
was a contribution for the permanent installation of the tower at
a new location. To date, the clock tower is still in storage and
the City of Houston has not executed the agreement.
Per the agreement, METROs obligation was to remove and
deliver the clock tower facade to a storage location designated
by the community.

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Clock Tower Contd.
History Continued:

The agreement further states All economic cost associated
with the rental, maintenance, upkeep and insurance of the
storage location and storage of the faade, as designated by
the community, shall be borne by the Houston Parks and
Recreation Dept.

To date the money has not been paid due to the fact that we
have not received an executed agreement back from the City of
Houston.
The City of Houston has stated that Final Acceptance of the
East End Rail Line not be approved until this issue is resolved.

10
Hernandez Tunnel Property
CRV Hardy Yards and the City of
Houston have requested the use
of METROs property on Main
Street over the Hernandez
Tunnel.
Access and Use Agreement has
been signed by METRO.
Settlement Costs to be
determined.
METRO acquired Hernandez
Tunnel for $476,000.
Proportionate Square Foot Value
of Corner Clips is $23,659.
Required Real Estate
dedications are hatched in red.
Main Street Property
Corner Clips

Place Holder for Photo
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