Infrastructure Initiatives in Los Angeles

Infrastructure Initiatives in Los Angeles
Urban Landscape, May 2009
By: Julie Hoffman

Phelpsian. Staycation. Hockey Mom. Each year has its buzzwords, and those were just some of The New York Times official buzzwords of 2008. But now it's a new year, and sure to be on the list for 2009 is the word "infrastructure." The term typically refers to the basic facilities and services that support our communities. Things such as roads, bridges, power grids, sewers, and water facilities are critical elements needed in order for our society to operate and the economy to function.

The United States is in the middle of an infrastructure crisis. In addition to the high-profile failures-the breached levees in New Orleans, the bridge collapse in Minnesota-there are thousands of examples of how our aged, overburdened infrastructure is failing across the country. In Los Angeles, home to the largest wastewater infrastructure system in the nation, more than 4,500 separate overflows of sewage spilled onto the streets between 1994 and 2004, racking up billions of dollars in clean-up expenses.

The American Recovery and Reinvestment Act took a long-awaited first step to rebuilding our public systems by allocating $51.2 billion to "core infrastructure investments." The intent is to promote infrastructure spending that will not only create jobs and provide a stimulus in the short run, but also reduce the risk of economic and human loss in the long run. As Richard Little, director of the Keston Institute for Public Finance and Infrastructure Policy at USC pointed out, "If New Orleans has not served as a ‘teachable moment' to generate real concern and response, it is somewhat frightening to think what would constitute such a moment."

The American Society of Civil Engineers (ASCE) 2009 Report Card gave California's infrastructure an average grade of C-, and estimated annual investment needs at $37 billion. California citizens expressed a desire to move infrastructure projects forward in November 2006, when voters approved over $42 billion in general obligation bonds. Those bonds are to fund transportation improvements and repairs, expand local transit, upgrade freight transportation corridors, repair levees, and ensure safe drinking water and current water supplies. In November 2008, City of Los Angeles voters approved Measure R, committing a projected $40 billion to traffic relief and transportation upgrades throughout Los Angeles County over the next 30 years.

This Newest New Deal is generating many innovative and progressive infrastructure initiatives.

"People recognize that traditional methods don't work," said Little. "This is an opportunity for the city to look at how to use infrastructure and land use in more creative ways and achieve some of its other goals."

Transportation Initiatives

The ASCE determined that one of California's top infrastructure concerns is its roads. The Los Angeles County Metropolitan Transportation Authority (Metro) is currently exploring different opportunities to partner with the private sector and provide funding to deliver currently unfunded transportation projects, or accelerate the construction of funded projects in L.A.

One such initiative is Metro's Congestion Reduction Demonstration Project, known as ExpressLanes. Congestion pricing is the concept of charging for the use of a transportation facility, such as a roadway, based on the level of traffic congestion. In essence, certain carpool lanes (or high occupancy vehicle (HOV) lanes) will be converted to high occupancy toll (HOT) lanes. Patrons will prepay the tolls to a private company and receive a "fast pass" electronic transponder that automatically charges the toll. The greater the level of congestion, the higher the cost to use the HOT lane will be.

Orange County and San Diego are already using HOT lanes. In December 1995, Orange County opened four 10-mile toll lanes in the median of the existing SR 91; actual toll revenues in fiscal year 2007 amounted to $44 million. Since December 1996, solo drivers on an eight-mile stretch of the I-15 in north San Diego County have been allowed to use the express lanes for a fee (carpoolers still travel free of charge). Congestion pricing has also worked successfully in London, Stockholm, Singapore and Minneapolis.

ExpressLanes is a one-year pilot program expected to start in Los Angeles in December 2010. HOT lanes will be created on the I-110 between 182nd Street/Artesia Transit Center and Adams Boulevard, and on I-10 between Alameda Street/Union Station and I-605. Revenues generated by the tolls will be used first to pay for the operations of the managed lanes, and second to improve transportation services in the corridor where the toll is generated.

"Think about the highway system as another utility system. It's really the only system we don't charge people to use," said Little. "Imagine if we had a similar electricity or water system, we would have rolling blackouts and water shortages. So we can't just build our way out of the highway capacity problem."

Multi-Benefit Projects

In analyzing its infrastructure, the City has taken steps to seek out multi-benefit projects. These are projects through which environmental benefits can be introduced for an incremental cost. One such initiative is the movement to make Green street improvements that meet street maintenance priorities such as structural integrity and reliability while addressing L.A.'s need to reduce the use of imported water.

Billions of dollars and an enormous amount of energy are spent annually to pump water into L.A. from Northern California, while much of the rainwater that actually falls in the City goes to waste. In addition, urban runoff is the number one source of pollution to the ocean. In May 2007, Public Works Commissioner Paula Daniels formed the Green Streets Committee (GSC), an initiative which brings together Public Works, Department of Transportation, and other City departments to develop new designs for city streets in order to include natural filtration as part of street construction projects.

The GSC's main focus is to filter urban runoff through vegetated areas, such as recessed landscape planters. Permeable pavements and other Green technologies are part of the suite of best management practices. On traditional street design, rainwater hits the surface, is channeled along the street against the wall of a curb, and is directed into the nearest drainage channel. The rainwater collects pollutants, chemicals, and oils as it runs off the hard surfaces. Vegetated, natural, and permeable areas, however, allow the rainwater to percolate back into the soil below, where natural processes can break down the pollutants and cleanse the water.

"We are redesigning infrastructure to weave the textures of nature into our urban fabric," said Daniels. "Because we have hardscape over the ground, nature can't do its work. But if we let the rainwater do what it naturally did before we built out the environment, we can save the water we pump in from Northern California, and the energy it takes to pump that water here."

Permeable pavements can have the greatest impact in ultra-urban areas like Los Angeles, where they can be incorporated into existing structures, such as roads, sidewalks, and parking lots, and do not need additional space required for construction of other stormwater capture systems. In addition to the public right-of-way, areas such as golf cart pathways, driveways, alleys, and bike paths are candidates for permeable pavements.

"This is an opportunity for infrastructure planning to take place in a truly holistic manner," said Emily Gabel, FASLA, chief urban designer of the City of Los Angeles Urban Design Studio. "Instead of chaos, we are having real discussions about what standards make sense in a certain area."

Several city projects have already incorporated permeable pavements as part of the design. The Oros Green Street Project in Elysian Valley directs runoff from residential lots and the street into parkway gardens for cleansing through a series of soil filtration and vegetative bio-retention treatments. In late 2008, The South Group opened Evo, a LEED Silver mixed-use condominium project near L.A. Live in downtown L.A. Like its sister buildings, Luma and Elleven (California's first LEED Gold certified condos), Evo features a water infrastructure system that clears stormwater off the street and into infiltration beds to cleanse it. The Palos Verdes Peninsula Land Conservancy features a 44 car parking lot and bus drop off at the White Point Nature Preserve that was built using gravel pavers to allow for 100% infiltration.

Permeable pavement is not appropriate for every street in L.A., as the additional depth required could infringe on existing infrastructure, such as natural gas lines. However, L.A. cannot afford to lose any source of water supply, including stormwater.

"With the Mayor (Antonio Villaraigosa's) and the City's focus on Los Angeles being the Greenest city in the country, we will continue to look at multi-benefit projects like Green street improvements," said Gary Lee Moore, City Engineer of the City of Los Angeles Bureau of Engineering. "This will absolutely be mainstream in the future."

The Ports

One of the bright spots in California's infrastructure picture is the Port of Los Angeles.

"The infrastructure issue we're really facing here is green growth," said Arley Baker, Senior Communications Director for the Port of Los Angeles. "With the advent of globalization, the carbon footprint for goods movement has gotten bigger. What we did 50 or 60 years ago needs to be redone, with a longer-term, more sustainable approach to infrastructure. The ultimate goal in terms of reducing our carbon footprint is a zero emissions port."

The Port of L.A. is the busiest container port in the western hemisphere, but also one of the biggest polluters and users of energy in the region. However, the Port has recently taken several initiatives that have attracted attention worldwide.

One such initiative is the Port's development, in conjunction with the South Coast Air Quality Management District and Balqon Corporation, of an all-electric heavy duty truck that can pull a fully loaded container at speeds of up to 45 mph, for a distance up to 60 miles. The Port recently ordered 25 of the short-haul drayage trucks, five of which will be on-road trucks, and the other 20 for use inside the container terminals.

"The majority of trips from the Port are within 20 miles to local railyards and warehouses, and this electric truck is just a drone that can go back and forth," said Baker. "It is really compelling when such a public health issue is created by diesel emissions generated by thousands of old, dirty trucks that haul cargo these short distances."

The Port has also been attracting attention for its energy infrastructure. Traditionally, when a ship docks at port for loading or unloading, its auxiliary engine runs to provide power; in a 24-hour period, that ship engine generates as much pollution as 350,000 cars. In 2004, the Port began using Alternative Maritime Power (AMP), a practice in which a ship cuts its engine and plugs into a dockside electrical power source. Ports around the world have now begun testing L.A.'s shore-to-ship AMP electrification technology.

One of the Port's biggest initiatives was the approval of the Clean Air Action Plan (CAAP) in 2006. The goal of the CAAP is to reduce overall port emissions by roughly 50% over a five-year period by making significant changes in port operating practices. For example, by the end of 2011, the Port must replace or retrofit the entire fleet of more than 10,000 privately operated drayage trucks that currently serve the Port with trucks that meet or are cleaner than the 2007 EPA emissions standards. Other machinery used within the Port will be powered by renewable fuels, and more cargo will be moved by low-emitting rail.

The efforts to reduce port-related emissions required under the CAAP balances regional needs for economic development and job creation with concerns about public health and environmental impacts.

"It wasn't too long ago that we could not get a project approved in these ports," said Baker. "We were literally paralyzed by air quality and related health concerns that caused community backlash and threats of litigation. But since the CAAP, we've approved three cargo terminals that will be extremely clean and will not exceed the local regulatory threshold of significance for public health risk."

Maintaining, repairing, replacing, and upgrading L.A.'s infrastructure will be expensive and difficult, but the consequences of not doing so will be even more costly.

"You can keep the proper amount of air in your tires today, or deal with a blowout later, which is way more expensive," said Moore. "It's the same with infrastructure. If you continue to invest, you'll avoid the major investments down the line."

And that would be, to use another buzzword, change.

Julie Hoffman is an attorney in the Real Estate, REITs & Real Estate Capital Markets Group of Goodwin Procter (www.goodwinprocter.com). Her practice involves numerous real estate transactional law matters, including representing buyers and sellers in the negotiation and documentation of acquisition, disposition, and development of real property; negotiating land use, financing and other development approvals; and providing counsel on publicly financed projects to developers, underwriters, municipalities, special districts and other governmental agencies in the California and the West.