Builders see billions as state propositions fund transit growth.

Builders see billions as state propositions fund transit growth

Voter approval of three state transit measures June 5 will spawn a Southland construction boom the likes of which has not been seen since the birth of the freeway system 40 years ago. It is the biggest public works program in the United States.

"We were elated those propositions passed," said Melvin Polacek, vice president of the Pasadena-based Parsons Corp., which already has $200 million in Metro Rail engineering and management contracts.

"It means new transportation funds will be around and we are confident we will get our share of new work."

With propositions 108, 111 and 116 now on the books, $5 billion in new taxes and bond issues will be used to fund completion of the Metro Rail, widen the Long Beach (710) Freeway, install a computerized traffic-light system for downtown Los Angeles and hundreds of other projects. Those plans -- and the thousands of construction, engineering and design contracts needed to complete them over the next 10 years -- has the transportation industry in high gear.

It's also welcome news for the economy, according to economists, contractors and transportation officials. Thousands of new jobs, all supported by investments in Southern California's aging infrastructure, will help offset the weight of defense cutbacks and a slumping real estate market.

Said Ron Tutor, president of Los Angeles-based construction company Tutor-Saliba Corp., "The general feeling is that we will obviously see a substantial increase in the amount of work as well as the funding to carry out projects already started." Translation: Tutor-Saliba's $60 million to $70 million contract with Caltrans to widen the Ventura 134 Freeway will continue uninterrupted.

Transit authorities take the same line.

Backlogged projects, like the $470 million extension of the Long Beach Freeway into South Pasadena, are now on track as well as the 150-mile rail network being planned.

Officials at The Los Angeles County Transportation Commission, which doles out state transit funds locally, were biting their nails as voters narrowly approved the most important measure, Proposition 111, the so-called gasoline tax. They knew the California Transportation Commission, which literally writes the checks to local transit commissions like the LACTC, had stopped allocating money for new projects last December.

But that's now changed, like the Southland's clogged freeway system are expected to be after $5 billion in improvements are made.

Said Ed McSpedden, president of the Rail Construction Corp. which manages and designs all rail programs in Southern California, "Contractors will obviously see more work sooner. And in terms of our plans, the measure probably saves 10 years in building projects.

While many of the transit projects must still receive final clearance from the California Transportation Commission, the buzz in the transit industry is palpable.

Bechtel, the San Francisco-based construction and engineering giant, announced last week it is expanding its transportation operations in Southern California. The LACTC held a special conference last week for contractors interested in bidding on $2 billion in new light and heavy rail projects. And the California Transportation Commission has already approved $67 million for the long-delayed 17.3-mile Century (105) Freeway.

LACTC Executive Director Neil Peterson was exuberant the propositions passed. He said it all but guarantees the LACTC will distribute the $10 billion it expects to spend on the rail lines by 2001. With $5 billion coming from the state, Peterson reasoned, it makes it easier for the LACTC to collect transit funds from local sources and the federal government.

"Passage of those measures was a major development for us," Peterson said. "And from the perspective of raw economics, it will be a nice shot in the arm to the local economy which seems to be slowing down. Every $100 million in public-works programs supports 8,000 jobs."

That point wasn't missed by local economists, brimming with predictions of lost jobs, migrating businesses and traffic meltdowns had the propositions failed.

"Those propositions will mean a lot to us here," said Jack Kyser, chief economist of the Los Angeles Area Chamber of Commerce. "Not only will they help unclog the freeways but they will be a huge boom for the construction industry. That should help us weather the effects of aerospace cutbacks and criticism that Los Angeles wasn't doing anything about its transportation problems."

David Hensley, director of California research at the UCLA Business Forecasting Project, was more cautious. "It's going to provide a boost but we haven't studied it yet," Hensley said. "I don't know if it will do enough to balance other problems with the economy. We'll have to wait and see."

One side effect of the new spending will be to spur development projects near major rail depots and transit links. The Southern California Rapid Transit District last January announced it would develop two Metro Rail sites, including Union Station, with private real estate companies and the LACTC is planning to do the same for light rail stations.

According to the LACTC, spending for Southern California breaks down like this:

* Proposition 108, the measure that authorizes three $1-billion state bonds, will bring $1.5 billion to fund the three phases of Metro Rail between now and the year 2000. In addition, it enables the LACTC to provide approximately $1.1 billion in Proposition A funds -- the half-cent sales tax county voters approved in 1980 -- for the Metro Rail and the Pasadena-to-Los Angeles and Norwalk-to-El Segundo light rails. Other Proposition 108 funds will be used to buy railroad rights-of-way and equipment for a commuter line connecting Los Angeles with San Bernardino and Ventura counties.

* Proposition 111, the measure that doubles the gas tax and raises transit-related fees for trucks over 10 years old, will mean $2.5 billion for an array of local projects. Nineteen freeways and arteries -- from the Santa Monica (10) and Ventura (134) freeways to the Pacific Coast (1) Highway and Vincent Thomas Bridge -- will be widened, given new ramps and retrofitted for earthquakes. Another $47 million will go to 86 Southland cities for improving streets and roads, and $125 million will be used to complete the $1.4 billion Metro Rail Phase One, set to run from Union Station to MacArthur Park by 1993. And transit authorities have a three page list of other projects eligible for funding, including rail lines, interregional highways and freeway sound walls.

* Proposition 116, the measure that authorizes the state to issue bonds worth $2 billion, translates into $560 million for Southern California. That $560 million will be used to fund a Los Angeles-San Diego and Los Angeles-to-Santa Barbara commuter rail lines as well as Metro Rail.

"It's going to be a tremendous thing for California and construction companies," said Dan Cochetas, chief estimator of Wm. J. Kirchnavy, a small contractor based just north of San Diego. "Most of our work in recent years has been road grading and small municipal projects near San Diego. But we are always looking for new contracts and these propositions have sparked our interest in Los Angeles. We are keeping our eyes open and the spin-offs will reach us."