LOS ANGELES (CNS) - The Los Angeles City Council Wednesday backed a decision made by a commission in providing the LAX People Mover an additional $200 million to settle legal claims.
In a 14-0 vote, council members approved a resolution previously passed by the Board of Airport Commissioners for the funds. The money is expected to be used to settle claims submitted by the contractor, LAX Integrated Express Solutions, bringing the project's total budget to $2.9 billion.
Councilman Curren Price was absent during the vote.
The LAX People Mover is an automated people mover line around the airport, which is part of the airport's $5.5 billion Landside Access Modernization Program. The APM will be an electric train system on 2.25 miles of elevated rail with six stations.
Part of the project will update terminals and gates, and airport signage, to help travelers move through the airport.
According to the resolution, over the past year, Los Angeles World Airports and LAX Integrated Express Solutions have been negotiating in good faith in an attempt to resolve a number of relief event claims submitted by the contractor. Recent discussions have turned toward negotiating a potential global settlement for all outstanding relief event claims and an appropriate extension of time to complete the project.
The project was originally expected to be in operation by 2024, but due to the disagreements, which have led to delays, it will open by late 2025.
In May, the Los Angeles Times reported that the issue has been discussed in closed session during multiple Board of Airport Commissioners meetings. John Ackerman, CEO of Los Angeles World Airports, told the Times that both parties has "come to a fair settlement that allows us to deliver the train that this community really deserves."