Resolution No.

R2020-12
Amend Baseline Budget for the Hilltop Tacoma Link Extension

Meeting: Date: Type of action: Staff contact:

System Expansion Committee 06/11/2020 Recommend to Board Ron Lewis, DECM Executive
Board 06/25/2020 Final action Director
Madeleine Greathouse, Project
Director – Hilltop Tacoma Link
Extension

Proposed action
Amends the Adopted 2020 Budget by increasing the Hilltop Tacoma Link Extension baseline budget by
$35,400,000 from $217,346,000 to $252,746,000 to provide funding required to complete the project to
meet the planned revenue service date.

Key features summary

• Since construction began in late 2018, the project has encountered numerous challenges as a result
of differing site conditions and obstructions, conflicts, and contaminated materials related to utility
relocations, leading to accelerated use of project contingency.
• In response to those conditions staff informed the Board in December 2019 through Motion No.
M2019-122, the estimate to complete indicated additional funding was required to complete the
Hilltop Tacoma Link Extension. The proposed budget amendment anticipates providing the required
funding to complete construction of the project and represents a 16 percent increase over the
baseline budget.
• The project is 56 percent complete with limited contingencies remaining. The utility work is
approximately 82 percent complete.
• Quantitative risk assessments were performed at regular intervals throughout the progress of the
construction work to assess the adequacy of project contingency. The May 2019, October 2019 and
April 2020 risk assessments all indicated a high probability the project would exceed the baseline
budget.
• The construction work is the key contributing factor driving the need for additional project budget. In
support of the construction, additional budget is also required for professional services in the design,
construction management, and administration phases.
• In addition to the construction related requests, a planned amendment to the LTK vehicles contract
addresses the scope of services required for testing and commissioning of the five new Tacoma Link
vehicles.
• The baseline schedule included nine months project float. While much of that float will be consumed
by the extended duration of construction, the revenue service date of May 2022 remains unchanged.
Background
The Hilltop Tacoma Link Extension is a 2.4 mile extension of light rail from the Theater District in
downtown to the Hilltop neighborhood in Tacoma. The extension will travel at-grade, in-street with traffic
along Stadium Way, North 1st Street, Division Avenue, and Martin Luther King Jr. Way. The project
includes six new stations, relocates the Theater District Station, expands the existing Tacoma
Operations and Maintenance Facility (OMF), and provides for additional light rail vehicles.
Revenue service for the extension is forecast for May 2022.
In July 2018, Sound Transit Board approved Resolution No. R2018-19. The action authorized phase
budget transfers from Right of Way and Vehicles to Construction in order to fund the construction
contract. During staff remarks at the July 2018 Board, the challenges of the utility relocation work were
highlighted as presenting the largest risks from a cost perspective and additional risk assessments
would be necessary to assess confidence levels of project contingency levels.
Staff performed three quantitative risk assessments between May 2019 and April 2020 in an effort to
monitor project contingency levels and to include identify and establish mitigations for new project risks.
The results of the May 2019 risk assessment confirmed the current construction contract contingency
levels were insufficient. Staff forecasted minimum project contingency level would be reached in
September 2019. In July 2019, staff informed the Board that based on the risk assessment there was
only a 20 percent probability of completing the project within the baseline budget unless risks were fully
mitigated. Staff performed a second quantitative risk assessment in October 2019 as part of a Recovery
Workshop. The purpose of this workshop was to review the project risks and identify secondary
mitigation measures in an effort to control cost impacts. These secondary mitigation measures were
implemented but the high volume of change orders associated with ongoing utility relocations continued
to add to cost pressures.
In December 2019, the Board authorized remaining project contingency funds within the project budget
be allocated to the project’s major construction contract. Staff informed the Board that additional project
funding would be required to complete the project and this request would follow in Q2 2020, following a
third quantitative risk assessment and updated project estimate at completion. The April 2020 risk
assessment was timed to align with the near completion of the underground utility relocations so the
cost impacts from changes due to differing site conditions could be readily quantified. The results of the
risk assessment and updated estimate at completion represent additional funding of approximately 16%
over the baseline project budget is required to complete the project.

Project status

Conceptual Preliminary
Project Alternatives
Engineering/ Engineering/ Final Design Construction
Identification Identification
Draft EIS Final EIS

Projected completion date for Construction: 1Q 2022

Project scope, schedule and budget summary are located on page 95 of the March 2020 Agency
Progress Report Capital Programs.

Fiscal information
This action increases the baseline budget without adding scope or schedule.

Motion No. M2020-12 Page 2 of 4

Staff Report
The baseline budget for the Hilltop Tacoma Link Extension is $217,346,000. The action would increase
the baseline budget by $35,400,000 to $252,746,000 for increased construction, design, construction
management and administrative costs.

The current financial plan can accommodate the increased project cost. Current economic conditions,
however, will likely result in a significant loss in revenue and changes to long term projected financial
capacity.

Disadvantaged and small business participation

Not applicable to this action.

Public involvement
Not applicable to this action.

Time constraints
A one-month delay would impact the construction phase of the project by limiting ongoing construction
contract administration efforts.

Prior Board/Committee actions

Motion No. M2019-122: Authorized the chief executive officer to increase the contract contingency for
the Hilltop Tacoma Link Extension construction contract with Walsh Construction Company II, LLC in the
amount of $4,300,000 for a new total authorized contract amount not to exceed $118,009,750,
contingent upon Board approval of the Proposed 2020 Budget through Resolution No. R2019-30.
Resolution No. R2018-19: Transferred $1,468,120 from the Contingency phase to the Final Design
phase of the Adopted 2019 Budget for the Hilltop Tacoma Link Extension, while maintaining the baseline
budget of $217,346,000.

Motion No. M2020-12 Page 3 of 4

Staff Report
Motion No. M2017-33: Authorized the chief executive officer to execute a Funding Agreement with the
City of Tacoma for the Tacoma Link Expansion Project.
Resolution No. R2017-31: (1) Adopted the Tacoma Link Expansion baseline schedule and budget by
increasing the authorized project allocation from $34,622,000 to $217,346,000 and established a project
revenue service date of May 2022; (2) approved passage though Gate 5 within Sound Transit’s Phase
Gate process; and (3) approved Tacoma Link Extension as the project name.

Environmental review – KH 6/1/20

Legal review – AJP 6/9/2020

Motion No. M2020-12 Page 4 of 4

Staff Report
Resolution No. R2020-12
A RESOLUTION of the Board of the Central Puget Sound Regional Transit Authority amending
the Adopted 2020 Budget by increasing the Hilltop Tacoma Link Extension Baseline Budget by
$35,400,000 from $217,346,000 to $252,746,000.
WHEREAS, the Central Puget Sound Regional Transit Authority, commonly known as Sound
Transit, was formed under chapters 81.104 and 81.112 of the Revised Code of Washington (RCW) for
the Pierce, King, and Snohomish Counties region by action of their respective county councils pursuant
to RCW 81.112.030; and
WHEREAS, Sound Transit is authorized to plan, construct, and permanently operate a high-
capacity system of transportation infrastructure and services to meet regional public transportation
needs in the Central Puget Sound region; and
WHEREAS, in general elections held within the Sound Transit district on November 5, 1996,
November 4, 2008, and November 8, 2016, voters approved local funding to implement a regional
high-capacity transportation system for the Central Puget Sound region; and
WHEREAS, the Hilltop Tacoma Link Extension is a 2.4-mile extension of light rail from the
Theater District in downtown to the Hilltop neighborhood in Tacoma. The extension will travel at-
grade, in-street with traffic along Stadium Way, North 1st Street, Division Avenue, and Martin Luther
King Jr. Way. The project includes six new stations, relocates the Theater District Station, expands
the existing Tacoma Operations and Maintenance Facility (OMF), and provides for additional light rail
vehicles; and
WHEREAS, the Sound Transit Board selected the project route, stations, and operations and
maintenance facility expansion site on November 19, 2015. In September 2017, the Sound Transit
Board established the baseline budget and schedule for the project. Revenue service for the
extension is forecast for May 2022; and
WHEREAS, the increase of project budget is needed to provide funding for a separate action,
Motion No. M2020-31, to increase the contract contingency for the construction contract in order to
complete the project and supplement project phase budgets to support agency and consultant staffing
levels from the completion of construction through project closeout; and
WHEREAS, the project is currently 52% complete. This action will authorize and additional 16
percent of funding to be allocated to Agency Administration, Final Design, Construction, Construction
Services and Vehicles phases in accordance with the project estimate at completion.
NOW, THEREFORE, BE IT RESOLVED by the Board of the Central Puget Sound Regional
Transit Authority that the Hilltop Tacoma Link Extension Baseline Budget is increased by $35,400,000
from $217,346,000 to $252,746,000.

Resolution No. R2020-12 Page 1 of 2

ADOPTED by the Board of the Central Puget Sound Regional Transit Authority at a regular meeting
thereof held on _______________.

Kent Keel
Board Chair
Attest:

Kathryn Flores
Board Administrator

Resolution No. R2020-12 Page 2 of 2