By Melody Hanatani
Daily Press Staff Writer

DOWNTOWN LA The long-awaited dream to bring a transit rail system to Santa Monica hit another snag.

Officials with the Exposition Construction Authority announced last week that the first phase of the light rail project, which will take the public transit system from Downtown Los Angeles to Culver City, is battling a $145 million shortfall, raising questions as to when the electrically-powered train would reach Santa Monica.

Construction for the first portion of the project began in August and the second phase, which would bring the light rail from Culver City to the terminal at Fourth Street and Colorado Avenue in Santa Monica, is currently undergoing planning.

The first leg of the Expo Light Rail was originally slated to cost $640 million when initial cost estimates was done in 2004 and 2005. That projection only accounted for a 3.5 percent inflation rate, standard for the construction industry three years ago.

How times have changed.

A sizable chunk of the multi-million dollar deficit — approximately $80 to $100 million — is attributed to inflation, which actually increased in the neighborhood of 11 to 20 percent a year. The remainder of the price hike is due to additional insurance, bonds needed when construction prices increase and an extra contingency fee, which is calculated in proportion to the overall project cost, said Samantha Bricker, the chief operating officer for the Exposition Construction Authority.

Expo officials plan to meet with the Metropolitan Transportation Authority board at the end of this month to request the additional funding.

“We think the board will want to finish the project and do it correctly,” Bricker said on Monday. “We have a lot of support for the project on this board and hopefully they will approve the increase.”

The original estimate was done before the preliminary designs had been completed and lacked several unanticipated costs, including $6 million to relocate a major sewer line.

“Once you have the design for the project, you see where the utility locations are, you see where the structures are, you see more things about shoring and grouting and ducting and all engineering terms that don’t turn up on design or drawing,” Bricker said.

The first phase of the project is now estimated to cost $808 million.

The escalation in the cost of construction materials and labor is felt in all sectors, according to Pam O’Connor, the chairwoman of the MTA board, adding that CalTrans is also feeling the pinch in its highway construction projects.

There are several options available to keep Expo going, including breaking the project up into smaller segments and to find other financial sources, said O’Connor, who is also a Santa Monica City Councilmember.

“The key is to keep the project moving forward and to continue planning,” O’Connor said on Monday. “The reality is this will have cost a lot less to build 10 years ago, and it will cost more to build 10 years from now, so we need to work to build this as soon as possible.”

The underestimation of phase one could be a lesson well learned for the planning of phase two, as well as all MTA projects, Bricker said.

The first stretch of expo is slated to open in 2010 and the second phase could be completed by 2015.

Up to three stations are planned for Santa Monica — one at Bergamot Station, a second at an undetermined location in the Mid-City and a terminal at the Sears auto lot in the downtown area.

The Exposition light rail will begin at 7th Street at the Metro Center station in Downtown Los Angeles, traveling south and then west alongside the 10 Freeway until it hits Culver City, a trip estimated to take less than 30 minutes.

In coming up with an estimate for phase two, Expo officials will take into consideration a higher construction inflation rate than used for phase one, and will incorporate the high cost of real estate on the Westside.

“We’re trying to be more realistic,” Bricker said.

melodyh@smdp.com