Tutor Saliba tapped to finish Hollywood subway.

Tutor Saliba Corp. will complete most of the construction work on the Hollywood subway tunnel left unfinished when contractor Shea-Kiewit-Kenny was fired by the Metropolitan Transportation Authority.

The MTA's Board of Directors took action last week that virtually guarantees Tutor Saliba and the Tutor Saliba-Perini joint venture will complete five of the eight sections of the tunnel left unfinished, and possibly as many as seven.

But meanwhile, a loosely organized Hollywood community group has hired an attorney who is threatening to sue the U.S. Department of Transportation to stop construction of the Red Line subway system in Hollywood until more environmental studies are done.

Attorney Lawrence Teeter of Mid-Wilshire Los Angeles has sent a letter to U.S. Secretary of Transportation Federico Pena on behalf of the Hollywood Boulevard Community Council vowing to sue to stop Metro Rail construction along Hollywood Boulevard unless U.S. DOT cuts off federal funds for Metro Rail and stops the project by Aug. 14.

The MTA board last week voted to ratify the firing of SKK, disregarding a unanimous vote by a disputes resolution board to reinstate the contractor. SKK has been operating under a cloud because of sinkage problems along Hollywood Boulevard, and recently federal and local investigators served search warrants at SKK offices as part of a probe into corruption allegations.

SKK Chairman John Shea testified before the MTA board last week, saying the sinkage was caused by "two underground rivers that MTA geological reports had not predicted."

Somewhat ironically, representatives of Hollywood community groups have been coming to that same conclusion recently.

In Teeter's 28-page letter to Pena, he notes the L.A. Department of Water and Power also has blamed the sinkhole incident on underground rivers and groundwater conditions. Teeter predicts more sinkage is likely in Hollywood if construction continues on the tunnel and stations.

"The gross inadequacy of MTA's environmental review is confirmed again and again as this project continues to spiral out of control," Teeter wrote. "The Hollywood Boulevard corridor and Historic District have thus become a chamber of Metro Rail construction horrors."

MTA staff told the board last week that the fastest and most economical way to finish the Hollywood tunnel now is to issue "change orders" to contractors building stations and other projects for the MTA along the route, increasing the scope of their contracts. The staff wanted to invite Kiewit-Shea, another partnership that includes two of the three companies in SKK and is building two stations, to bid against Tutor for some of the tunnel work. But the MTA board rejected that idea.

No new bids

"This is why we have so many problems - common sense," said Supervisor Yvonne Burke. "Common sense would tell us you don't just let them back in to bid because they turned the name around."

Some board members wanted to invite more contractors to bid, but staff said that would increase the project's cost because providing access to outside tunnel construction crews would inconvenience station con tractors.

"If they (station contractors) don't want to give access to a new contractor, then how did SKK get access?" posed Northridge safety consultant Bob D'Amato. "You are bringing back people like Tutor who shouldn't be here."

Tutor Saliba has been criticized for overcharging the MTA through bogus change orders.

Under the board action taken last week, the MTA will negotiate with Kajima Ray Wilson JV, which is building the Hollywood/Vine station, on one section of tunnel completion. And Kajima will bid against Tutor and Traylor Bros. on two other sections.

Also at last week's board meeting:

* The board approved the MTA budget for fiscal 1996, over the objections of bus riders who said the board's priorities are wrong. Members of the Bus Riders Union accused board members of pushing ahead with subway construction, despite a host of problems, while neglecting the troubled bus system.

* The board discussed, and referred to committee, a proposal to set aside $600,000 to provide staff for the six board members who are not members of either the County Board of Supervisors or the L.A. City Council.

"You should send (this proposal) to committee and leave it there never to be seen again," said L.A. City Councilman Nate Holden.

* The board heard a report and delayed action on alternatives for a Red Line "Mid-City" western extension.

Supervisor Zev Yaroslavsky accused the MTA staff of "trashing" the Wilshire Boulevard alternative while minimizing the dangers of toxic gases on the Pico Boulevard route.

"I am rapidly moving away from any underground system in the Wilshire area. Hollywood has taught us a lot of lessons," said Yaroslavsky. "If you wanted to trash Pico/San Vicente, you could have presented a parade of horribles there too, and a parade of horribles that likely will come true.

"Instead, you'll sweet-talk this Pico/San Vicente thing, build a subway ... and make a few more architects and engineers rich. But this gas problem doesn't stop at Wilshire Boulevard."