THE ROAD LESS TRAVELED
With 5 million registered vehicles, Los Angeles has developed a love-hate relationship with cars. And with so many residents converging on the city's roads, traffic can prove unbearable. But relief may be coming down the pike:
See the Light
The 8.6-mile (13.8-kilometer) Exposition Light Rail Transit Line is intended to relieve congestion on the busy Santa Monica freeway, which links downtown Los Angeles to entertainment hotbed, Culver City, California. Railway passengers should be able to travel between the two locations in less than 30 minutes.
5 million
The number of registered vehicles in the city of Los Angeles
Construction began in late 2006 and is scheduled to wrap up in mid-2010.
With a budget of $640 million, the project will include eight new stations, three park-and-ride lots with 1,500 parking spaces for commuters, as well as bike and pedestrian paths, and landscaping.
The project also calls for the creation of a trench designed to prevent the railway from interrupting traffic flow along several streets. Work began in August 2007 and is expected to take 13 months.
East Meets West
The east side of the city will soon have a faster way to travel between downtown Los Angeles and Hollywood. The Metro Gold Line east-side extension project broke ground in July 2004 and is expected to start transporting passengers in late 2009. With an $898 million price tag, the 6-mile-long (9.7-kilometer-long) extension offers eight new stations (including two underground).
FACTS & FIGURES
Population:
With more than 3.8 million residents, Los Angeles ranks as the secondlargest U.S. city, according to the U.S. Census Bureau. But it's nowhere near New York, New York, USA, which holds top honors with 8.2 million residents.
Language:
Hispanics and Latinos represent 46.5 percent of the Los Angeles population. As a result, the city has a fairly even split between its two dominant languages: 42.2 percent speak English only, and 41.7 percent speak Spanish.
Currency: U.S. dollar (USD)
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Economy: The highest-profile export from the “City of Angels” is pop culture. For decades, Los Angeles has been a breeding ground for hit TV shows, movies and music.
But entertainment isn't the only economic driver here.
The manufacturing sector may not have the glamour of the entertainment business, but it still carries plenty of heft, employing about a half-million workers. Apparel, computers and electronics, transportation products, fabricated metal and food products are some of the largest segments.
Los Angeles also serves as a transportation hub, staking claim to the country's largest port in terms of value of goods handled and tonnage.
Sources: U.S. Census Bureau, city-data.com, Modern Language Association
As the most populous state in the United States, California looms large as a national trailblazer for social, cultural and business issues. Look no further than the environment. In September 2006, California Gov. Arnold Schwarzenegger signed the Global Warming Solutions Act aimed at cutting the state's greenhouse gas emissions by 25 percent by 2020. At a signing ceremony in Los Angeles, he declared his goal to “make California No. 1 in the fight against global warming.”
It's just not the same old method of design and construction.
—Kenneth Reizes, South Group, Los Angeles, California, USA
As California's largest city, Los Angeles is poised to play a critical role in the green effort. The city's mayor, Antonio Villaraigosa, has declared he wants to turn the secondlargest city in the United States into “the greenest and cleanest city in America.”
Just consider the slew of environmentally friendly real estate projects popping up.
Last November, the Los Angeles Planning Commission approved an ambitious green building program that mandates new large developments be 15 percent more energy efficient. Designed to reduce the city's emission of greenhouse gases, the program also requires developments adhere to the Leadership in Energy and Environmental Design (LEED) standards developed by the U.S. Green Building Council (GBC).
The impact could prove significant: Large residential, commercial and industrial buildings represent 9 percent of new construction in Los Angeles each year.
The city also plans to assemble a “green team” of experts from departments, including planning, building and safety, and water and power. The goal is improve the environmental impact of the basic code for all buildings, including single-family homes and small commercial developments.
Already, more than 50 private buildings in Los Angeles are being built to LEED standards, according to the GBC.
Last October, South Group, a Los Angeles-based developer with a green emphasis, staked its claim as the first California condominium project to LEED rating.
Kenneth Reizes, a construction manager for the company, sees a definite upswing in interest. “The general public is concerned about conservation and energy consumption,” he says. “They're not just using materials in a haphazard way.”
READY FOR TAKEOFF
FROM JANUARY TO JUNE 2007, 11.65 million passengers boarded planes at Los Angeles International Airport, commonly known as LAX. That bustling airspace activity has resulted in some close calls, including a 16 August 2007 incident when a passenger jet on an airport runway narrowly missed another plane by less than 40 feet. Seven similar incidents had occurred earlier that year.
The airport hopes to reduce such concerns with a massive expansion that emphasizes safety and security. Center taxiways will be constructed in LAX's north and south airfields, and existing runways will be realigned to provide more distance between large and small aircraft for takeoffs and landings. The plan will also enlarge aircraft maneuvering areas, reducing delays and allowing planes to circulate more efficiently.
In addition, the project includes a new 12,000-space parking structure for employees, which will also help separate employee-related traffic from local and passenger traffic.
With an estimated cost of $11 billion, the expansion effort is designed to accommodate approximately 78.9 million passengers annually.
The project is expected to create nearly 49,000 construction jobs in Los Angeles County by the time it's scheduled to close in 2015.
Since the early 1960s, Mr. Reizes has worked in Los Angeles, doing project management and design and construction consulting. Although that work included some energy conservation efforts, his first experience with LEEDsanctioned green buildings was when he joined South Group four years ago.
“It's a continuing educational process,” he says. “We use [environmental] consultants to work with architects and engineers to establish the requirements for green building… and [construction managers] can learn just by attending those meetings.”
Among other things, that means being aware of all of the LEED criteria which include certain types of insulating glass and recognizing the need to recycle old construction materials such as asphalt paving from the excavation process.
“It's just not the same old method of design and construction,” Mr. Reizes says.
POWER SURGE
The green revolution extends to power as well. The Los Angeles Department of Water and Power (LADWP), the largest municipal utility in the United States, announced plans to build an 80-mile-long “green path” corridor to bring solar and geothermal power from southeastern California to connecting lines just northeast of Los Angeles.
The city's environmental consciousness might even be affecting projects in other states. Last November, Utah Associated Municipal Power Systems filed suit against the LADWP over its derailing of an expansion project at the Intermountain Power Project in Delta, Utah, USA. The Utah municipalities contend California's Global Warming Solutions Act played a role in Los Angeles throwing up barriers against the development. But Los Angeles and five other California cities take 75 percent of the electricity generated at the site, so their votes at the Intermountain Power Agency far outweigh those of the 23 Utah municipalities.
LEARNING LESSONS
The Los Angeles Unified School District, the secondlargest school district in the United States, has learned some painful lessons from a botched IT project.
As part of a $95 million technology upgrade, the district changed its payroll system. But paycheck problems began emerging in January 2007, according to a Los Angeles Times article, “when the district rushed the system into service.” Some of the flaws stemmed from the software programs' inability to process teachers' complicated job assignments and unusual work schedules.
In the end, thousands of Los Angeles teachers were overpaid, underpaid or not paid in 2007. School district officials estimated the system overpaid $53 million to about 36,000 employees. In mid-2007, one employee was told she owed a couple hundred dollars; a few months later, the district changed that figure to nearly $9,000. About 7,000 employees were underpaid by $7 million as a result of the payroll debacle. And as of November 2007, they were still waiting to receive their money.
Up to $37 million in additional funds will be needed to fix the system.
Up to $37 million in additional funds will be devoted to fixing the system, according to the paper. In late 2007, officials were in talks with Deloitte Consulting LLC, the firm that implemented the payroll system, to determine whether it would reimburse the district for any costs related to the project's failure.
PROJECTS ACROSS CALIFORNIA
PAYING THE PRICE IN SAN DIEGO
In November 2007, drivers in San Diego County finally got an alternative route—but first they'd have to pay. The new 10-mile-long (16-kilometer-long) South Bay Expressway has the distinction of being the region's first tollway.
As many as 40,000 vehicles are expected to travel daily on the four-lane extension of state Route 125, which officials hope will ease local congestion and draw shoppers to nearby stores.
A private company, South Bay Expressway Ltd. Partnership (an arm of the Macquarie Infrastructure Group of Australia), built the $843 million tollway and will manage it too. For the next 35 years, the company has the rights to all tolls, which range from 75 cents to $3.75.
The project's path to completion was paved with repeated delays. “We had a tremendous challenge trying to get this done,” Gary Gallegos, executive director of the San Diego Association of Governments told the San Diego Union-Tribune. “I've got years of scar tissue to show for it.”
Initially, the tollway was expected to be finished in 1995, four years after the state signed an agreement with South Bay Expressway Ltd. But construction didn't even begin until 2003, due in part to legal wrangling over environmental concerns. To address some of those issues, South Bay set aside 1,000 acres (404 hectares) for wildlife—part of the estimated $20 million spent by the company to mitigate the tollway's impact.
SLOW START FOR STATE'S HIGH-SPEED RAIL
Proposed more than a decade ago, California's high-speed rail line is off to a rough start.
Last October, the state Transportation Commission earmarked $15.5 million for engineering and design work. But that doesn't come close to the $40 billion needed to complete the project that would connect Southern California and San Francisco, California via a 700-mile (1,127-kilometer) rail system with trains traveling as fast as 220 miles per hour (354 kilometer per hour). A one-way ticket from Los Angeles to San Francisco would likely cost about $55.
The rail system's cost would be evenly split among private financing and state, local, and federal governments—but detractors say the project isn't economically feasible. A $9.95 billion bond measure for the project, already postponed twice, is scheduled for the November 2008 ballot.
HIGH-TECH HEALTHCARE IN RURAL CALIFORNIA
California is using broadband technology to help link rural communities with much-needed health services. The statewide project, called California Telehealth Network, will create a telemedicine network that connects rural healthcare clinics with the expertise of university teaching hospitals, public hospitals and other state healthcare facilities. If a widespread health emergency occurs, the telemedicine network is also intended to give rural health providers with specialized assistance via broadband technology.
Construction of the California Telehealth Network is expected to take between three and five years, according to Broadband Business Forecast.
The California Public Utilities Commission is part of a coalition of government agencies that will help guide the project. The group played a key role in obtaining $22 million in funding from the U.S. Federal Communications Commission.
DEALING WITH DIVERSITY
A veritable melting pot that includes people of just about every mix of ethnicity and race, Los Angeles is a trendsetter in diversity, too. And that means project leaders need to know how to bridge cultural divides among team members.
“I've had jobs in several cities including New York, and Los Angeles is the most diverse place I've worked,” says Amanda Williams, PMP, a project manager in the internet services group at healthcare giant Kaiser Permanente in Pasadena, part of Los Angeles County.
“My coworkers come from all over the world,” she says. On just one floor of her office, Ms. Williams can run into team members from Argentina, Canada, Ecuador, Guatemala, India, Ireland, Mexico, Peru, the Philippines and Russia.
“Los Angeles is an exciting place to live and work because of its diversity… and globalization makes people skills essential,” she says.
Project managers encounter—and contend with—industry diversity as well.
“Los Angeles is a market that is very diverse from an industry standpoint,” says Patrick McCauley, practice leader for the Los Angeles office of Point B Solutions Group LLP, a consulting firm focusing on project leadership. “With one or two exceptions, there aren't that many industries with large numbers of companies. As such, Los Angeles project managers, especially those operating in a consulting capacity, need to be able to lead projects in multiple industries. This means successful project managers can come up to speed quickly on a new industry.”
TRAFFIC REPORT
“As the traffic here gets worse and the commutes get longer, many companies are shifting to a more flexible model that allows employees to work from home parttime,” says Patrick McCauley, Point B Solutions Group LLP.
The result: Many projects are being staffed with teams that don't necessarily work side-by-side every day.
“Successful project managers on these types of projects need to consider new approaches to how they lead, plan and execute,” Mr. McCauley says. “They need to be good at working with people remotely and influencing people with little face time.”
Now more than ever, project managers in the region must analyze a widening array of data while avoiding information overload. “Project managers here are increasingly challenged to be better critical thinkers,” Mr. McCauley says. “They need to be able to quickly sift through a lot of data and distill it down to the most important information and key questions required to make a decision.”
TECH TOWN
A mini technology boom is also driving some changes in project management, Mr. McCauley says, pointing to the many small, high-tech companies popping up in Los Angeles and the nearby towns of Irvine and San Diego.
“Managing projects in these types of organizations requires project managers to be dynamic and flexible,” he says.
Many companies are reimplementing their enterprise resource planning systems, creating a growing need for project managers who can handle complex programs, he says. “Adapting to the shift from project management to program management is key,” Mr. McCauley explains.
Things don't always progress so fast on the government side, though.
DOWNTOWN LOS ANGELES: THE SEQUEL
During the past few decades, downtown Los Angeles was like a movie star who'd gone from box-office smash to career doldrums. Now, the area looks ready to stage a dramatic comeback, courtesy of a $10 billion development boom.
“Downtown Los Angeles is the area that's had the greatest influx of significant projects,” says John Whitaker, a real estate attorney and partner at DLA Piper.
In 1989, Mr. Whitaker joined the city's then newly formed Downtown Strategic Plan Advisory Committee. But it took four years for the group to create a 20-year plan for the area and have it approved by City Council.
$10 billion
Estimated amount to be spent on downtown development
“We envisioned a substantial mixed-use, residential community… throughout the greater downtown area,” says Mr. Whitaker. “But we couldn't get retailers—the ones you would typically find at suburban shopping centers—to come downtown. They didn't want to come without a residential base, and developers didn't want to develop unless there was retail.”
So the area “really hadn't done much, other than construct office buildings,” but now the committee's vision is becoming a reality. The city's planning department has 46 proposals for construction to happen over the next four years. What's more, developers are expected to increase the number of residential units from 8,000 to 27,000 in the next four years, according to the Downtown Center Business Improvement District.
Here are some key players in this urban revitalization tale:
THAT'S ENTERTAINMENT
An entertainment hub is springing to life in downtown Los Angeles. Called L.A. Live, the $2.5 billion development is being built by Anschutz Entertainment Group (AEG). The complex is next to the Staples Center sports arena, also developed by AEG.
The Nokia Theatre, a 7,100-seat auditorium with a 14,000-square-foot (4,267-square-meter) stage is already done, while a 1,225-unit condo-and-hotel building operated by the Ritz-Carlton Co. and JW Marriott is still under construction.
The center will also feature broadcast facilities, a 14-screen movie theater and nearly a dozen restaurants and clubs.
A GRAND CONSENSUS
The Grand Avenue project aims to live up to its name. Slated to open in 2011, this high-profile $1.8 billion effort is being developed by the California group of New York-based Related Cos.
Plans for Grand Avenue include 400,000 square feet (37,161 square meters) of retail space, 2,600 condos and apartments, a 9-acre (3.6-hectare) recreational and cultural promenade, a 275-room hotel, and a 50-story tower designed by architect Frank Gehry.
As the development of large-scale projects evolves into a more public process, consensus-building skills are particularly relevant—and the developer seems highly aware of this. When Bill Witte, president of Related Cos.’ California group, met with an array of stakeholders, a Los Angeles Times article declared he had “an almost inhuman tolerance for public meetings and lengthy discussions.”
URBAN GREENERY
A condominium developer is infusing downtown Los Angeles with a major dose of green. In late 2007, South Group finished its third high-rise building in the area and is already planning two more. In total, the developer's spending downtown could reach $750 million.
South Group's environmental efforts are aimed at setting the company's buildings apart. The designs include renewable materials like bamboo floors, as well as windows that open—a rare feature in high-rise buildings and one that allows reduced use of air conditioning.
“The city of Long Beach, California, is just starting to, bring project managers in for IT projects,” says Jeanne Takano, PMP, business information systems officer for the city of Long Beach, California, which is also part of Los Angeles County.
[Companies] want strong project managers, but they're definitely looking for project managers that also have that ability to touch the business.
—Jeanne Takano, PMP, City of Long Beach, California, USA
The strategy for Long Beach is to develop project management competencies within the IT department.
“We have individuals who show potential but need the training,” says Ms. Takano, who is also president of the PMI Los Angeles Chapter. “They have the desire to go into that field, and so we want to try to see if we can bring our people up to speed, instead of bringing in a project manager.”
Ms. Takano does need to hire people occasionally, so she keeps in touch with local recruiters and learns about qualities they seek in project managers. People skills are a top priority.
“I think that's what a lot of employers are looking for now,” she says. “They want strong project managers, but they're definitely looking for project managers that also have that ability to touch the business.”
In part, that means the ability to communicate with customers. “I'm in the IT industry, so I see folks who get very techie and forget that their customers aren't techie,” she says.
Ms. Williams also sees an increased need for continuous learning and flexibility.
“More companies are forming project management offices, and many are more willing to try new methodologies in hopes of producing better products faster,” she says. “As a project manager, I have to be eager to learn and adapt as the business changes. I think the most successful project managers are model agents of change.”
That's a bankable skill for project leaders here. Because whether it's shifting methodologies or environmental standards, change is a constant in this trendsetting city. PM