MOTION BY DIRECTORSANTONOVICH, GARCETTI, KNABE AND NAJARIAN

Construction andSystem Safety, Security and Operations Committees

September 18, 2014

Over the past decade, MTA has been working toward creating a permanent facility inLos Angeles County for the production of transit rail cars.

In 2012 and 2013, the MTA board awarded a series of contracts to KinkisharyoInternational, LLC for the production of 195 rail cars, and Kinkisharyo committed tobuilding a productions facility in the United States.

Committed to Los Angeles, the company chose to build the plant in Palmdale, offeringpermanent local employment opportunities and ensuring availability of passenger railcars for MTA's expanding rail system as well as meeting the needs of transit propertiesacross North America.

A law firm representing local unions has appealed Kinkisharyo's environmentalclearances, delaying the ability to obtain permits to build the plant, delaying theconstruction of the plant and also potentially delaying the delivery of some rail cars.

Contractually, Kinkisharyo can abandon the project if they are unable to acquire theidentified property by the end of September 2014, and can and likely will seek a locationto build the plant outside of Los Angeles County and California.

The production facility stands to bring hundreds of new and future jobs to Los AngelesCounty, and any efforts to delay Kinkisharyo's efforts will further exacerbate California'sability to attract new business to the state.

Removal of one facility from LA County will result in the expenditure of Measure R taxrevenues outside of the County of Los Angeles denying LA County residents thebenefits of potential employment and income from other goods and services generatedfrom Kinkisharyo's long term commitment.

WE THEREFORE MOVE THAT the CEO work with various interested parties,including the City of Los Angeles, to accelerate negotiations with InternationalBrotherhood of Electrical Workers and Kinkisharyo to a mutually acceptable solution bySeptember 30, 2014.

WE FURTHER MOVE THAT MTA support the City of Palmdale in holding anemergency City Council meeting to approve a Mitigated Negative Declaration bySeptember 30, 2014, if necessary.