1 August Accomplishments Conducted the 4 th Urban Design Committee meeting, which consisted of a tour of the Metro Orange Line. Conducted one-on-one briefings with Flower Street Businesses addressing construction impact concerns. Received 30% design submittal for Segments A (Downtown Connection) and B (Mid Corridor) from Design Builder. Submitted final draft of planning study and conducted meetings with Caltrans to complete advanced planning studies for project work that affects the State-owned right of way.

2 August Accomplishments Completed design of Flower Street improvements and submitted to City of Los Angeles for approval. Scheduled Downtown Community and Business meetings on Wednesday, September 13, Completed negotiation of first construction package for Flower Street Improvements between Washington Blvd and 23rd Street. Completed negotiations for the Contractor Controlled Insurance Program (CCIP).

3 August Accomplishments Received City of LA approval for construction of major utility relocations between 23rd Street and Vermont. Established a schedule matrix with the CPUC for submittal and approval of grade crossing applications for all 38 crossings. Design Build Contractor initiated tree survey and potholing program. Completed determination of equipment quantities and spare requirements for procurement of Universal Fare System equipment for the Expo Project. Initiated supplemental hazardous materials investigations along the Metro right of way.

4 August Accomplishments Issued lease termination notices to a total of 25 tenants effective September 30 to accommodate the removal of existing pipeline. 28 additional lease termination notices will be sent out in September with a December deadline for vacating the right-of-way. Encroachment notices were sent out to three property owners with an agreement allowing them to stay on our right-of-way until the end of December. Issued RFP for Engineering and Environmental Studies for Phase 2 of the Expo Project and held pre-proposal conference on August 14th. Authority and Design-Build Contractor conducted full-day Partnering session on August 2nd.

5 September Planned Activities Conduct the fifth Urban Design Committee meeting on Tuesday, September 12, Conduct Downtown Community Meeting and Downtown Business Merchants Meeting on Wednesday, September 13, Continue real estate acquisition and lease termination activities. Implement traffic detour on Flower Street for construction of improvements. Hold pre-construction outreach meetings with local business and general public. Groundbreaking Ceremony to be held on Friday, September 29, 2006.

6 September Planned Activities Authority and Design Build Contractor will negotiate the second construction package and present to Authority Board in October. Complete negotiation of Master Cooperative Agreement (MCA) with Culver City. Complete negotiation of Annual Work Program for FY07 with Caltrans. Begin construction of utility relocations and Flower Street improvements.

7 Project Major Milestones July 2006Aug 2006 Authority Actions Sep 2006 Oct 2006 Nov 2006 Design Build Contract Negotiate Construction Package A1 (18th to 23 rd ) Approval of Construction Management Services Consultant Community Outreach Construction Authority Open House Downtown Community Meeting & Business Merchants Meeting Finalize Construction Insurance Approve Construction Insurance Approve City of LA MCA and Annual Work Plan Groundbreaking Dec 2006 Approve Construction Package A1 (18 th to 23 rd ) Approve Construction Package A2A (23 rd to Vermont Utilities) Negotiate Construction Package A2A (23rd to Vermont Utilities) Legend : Urban Design Committee Meeting Start Construction Mid Corridor Community Meeting Negotiate Construction Package A4 ( 61” Waterline) Approve Construction Package A4 (61” Waterline) Downtown Construction Update Meeting Culver City Community Meeting