Council approves MOS 3 amendment, narrows project and redirects some funds to North Hollywood

The Los Angeles City Council approved an amendment to the MOS 3 agreement that limits the transit extension to the North Hollywood segment, removes the Mid City and East Side extensions from the MOS 3 scope and reduces the city's contribution from $200,000,000 to $92,000,000.

Jerry Miller with the CLA's (Chief Legislative Analyst) office told the council the amendment "limits the, segment 3 only to the North Hollywood extension. It eliminates the East Side and the mid city extensions" and reduces the city's contribution. Miller said the city's payment mechanism uses FTA funds and other municipal operator funds the city currently cannot access, which "frees up the $15,000,000" that had been budgeted as a partial payment toward the MOS 3 contribution.

The council approved reallocations of a portion of that freed money to local projects. Miller reported a proposed reallocation of $3,500,000: $2,000,000 for the North Hollywood economic development program and $1,500,000 for Pico Guarnier (as described in the staff presentation). Council members pressed staff for clarity about earlier commitments to land acquisition for Mid City and East Los Angeles; some members said earlier budgets had set aside funds for site control in those corridors.

Councilmember Hal Brinson moved an amendment tying part of council approval to parking protections at Universal City Station. Brinson said the amendment was necessary because without adequate parking "the Universal City Station will discourage use of the red line, undermine the very purpose of the significant contribution of public dollars to its construction." He moved that approval of the MOS 3 amendment be made "contingent upon provision of 250 parking spaces for the Universal City Station on the day it opens" and that the Department of Transportation report back within 30 days on construction schedules, staging, Caltrans review timelines, contract penalties for delays and incentives to accelerate completion.

Council members debated the amendment. Councilmember Wax expressed concern that making MOS 3 funding contingent on parking could delay the North Hollywood business-improvement measures, and staff clarified the MOS 3 amendment and the business improvement district funding were separate actions so the BID work could proceed. Councilmember Holden argued the Mid Wilshire corridor had been promised support and objected to removing Mid City from MOS 3 without equivalent commitments; others, including Councilmember Antonio Villaraigosa (identified in debate as supportive of extensions), said the city could not continue extensions without MTA funding.

The council voted to approve the Brinson contingency (agenda item 21a) and then approved the MOS 3 amendment as amended. The roll calls were recorded as 12 ayes, 1 no for the contingency and 12 ayes, 1 no for the amendment as adopted.

Why it matters: the change narrows the city's active MOS 3 commitment to North Hollywood and shifts funding priorities. Council and committee members said the change is a response to the MTA's decision to place other MOS 3 segments on hold and to available matching-funding mechanisms that staff said make some city funds discretionary.

Next steps: the Department of Transportation was directed to report back on the parking and construction-staging items Brinson listed (schedules, Caltrans reviews, contract penalties, and possible incentives). The staff presentation and council debate indicated further technical follow-up to identify what federal approvals, if any, are required before the city can repurpose specific budgeted amounts.