The Brief

In August 2024, the city of Los Angeles approved an agreement to pay more than a half-billion dollars to resolve a substantial number of schedule and compensation related disputes with the main contractor it hired to design, build and operate the LAX Automated People Mover.

It was thought at the time that some of that money would be passed down to subcontractors who were working on the 2.25-mile long elevated train, which is still scheduled to begin shuttling travelers around airport terminals and to the greater L.A. Metro system later this year.

A year and a half later, a major subcontractor alleges it still hasn’t received a penny of the tens of millions of dollars it says it’s owed from the settlement, which the city funded using public money it generates from airport-related fees and charges.

Early last year, LINXS, the main contractor, initiated a lawsuit blaming the subcontractor, Rosendin Electric, for deficient work. Rosendin Electric has responded in court filings, calling the lawsuit part of LINXS’ scheme to withhold settlement proceeds. The subcontractor has accused LINXS of engaging in “secretive, deceptive and improper conduct” and blocking testimony on key documents.

“Subcontractors whose work generated those funds are entitled to understand and recover their rightful share,” lawyers for Rosendin Electric wrote in court documents from October 2025. “Transparency here is not merely procedural; it is a matter of public trust and legal obligation.”

The design and construction of the train has been rife with disputes between the city and main contractor, leading to cost overruns that have eroded public confidence in the last piece of a rail-only connection to LAX. The case involving Rosendin Electric is one of at least two lawsuits that detail how LINXS’ relationship has frayed with the people the contractor hired to bring the long-awaited train into service.

LAist’s reporting for this story is based on publicly available documents related to the legal battle.

LINXS and Rosendin Electric declined to comment, citing pending litigation.

Jake Adams, deputy executive director overseeing $5.5 billion in LAX upgrades, including the People Mover, said Los Angeles World Airports “provides contract‑level oversight, but does not track how a developer allocates funds internally.“

LINXS sues Rosendin, blaming subcontractor for bad work and delays

Rosendin Electric anticipated completing its role on the project in July 2022, three years after it entered into a nearly $262 million contract with LINXS, according to court documents. LINXS hired the subcontractor to provide the labor, construction and assembly of various electrical components of the project, including the technology that powers the train and fire and life safety systems, according to an excerpt of the subcontract included in court filings.

Rosendin Electric’s lawyers said in court documents that despite “pervasive disruptions,” the subcontractor has continued to work on the project. The subcontractor’s lawyers continued, saying the company “relied on the expectation” that it would receive its “fair share” of any compensation the city provided to LINXS related to project delays.

The company wasn’t alone in expecting the funds to be filtered down.

According to a July 2024 presentation to the Board of Airport Commissioners, city staff said the settlement would be “advantageous” because it would ensure “subcontractors are paid sooner…providing cashflow to facilitate schedule certainty.”

In August 2024, L.A. City Council approved the agreement, known as the global settlement, to cover a wide swath of issues, including timeline, access to the airport’s IT network and compensation.

The settlement was to be paid out in increments as LINXS completed certain project milestones. All of the project milestones have been met except the final one, which is opening the train to the public. So far, that means the city has paid out more than $430 million.

Five months after the settlement was approved, LINXS filed a lawsuit against Rosendin Electric claiming breach of contract.

LINXS, which is a joint venture between four large international engineering and construction companies, alleges in its complaint that Rosendin Electric provided “defective construction services” that “deviated from technical requirements” and caused delays to the project.

Rosendin Electric denies the claims in LINXS’ lawsuit and later filed a cross-complaint.

LINXS’ alleged “secretive, deceptive and improper conduct”

Rosendin Electric claims the legal action LINXS initiated soon after the global settlement agreement was forged amounts to “excuses” that the contractor “began manufacturing” to avoid paying out settlement proceeds.

Among other allegations in its cross-complaint over breach of contract, Rosendin Electric claims LINXS:

• Rejected the idea that the subcontractor is entitled to any amount of the settlement.
• “Embarked on a scheme” to retain all of the settlement proceeds for itself by going after subcontractors who assert a “rightful claim to a share of recovery.”
• Stopped paying Rosendin Electric entirely, including “routine progress payments” unrelated to the settlement. 

In the latest development in the legal battle, Rosendin Electric’s lawyers said LINXS is trying to avoid testifying about two documents that “conclusively demonstrate that (Rosendin Electric) is entitled to prompt payment of tens of millions of dollars” from the settlement.

Another subcontractor sued

Within a month after the 2024 settlement was secured and before its legal action against Rosendin Electric, LINXS had also sued the design and engineering firm it hired in 2018 for breach of contract.

In its September 6, 2024 complaint, LINXS alleges that HDR overcharged for its services and produced work that “deviated from technical requirements.” That subcontractor denied the claims and later issued a cross-complaint, alleging LINXS owes more than $57 million for the work it’s done on the project.

Rosendin Electric’s lawyers called into question the timing of the lawsuit against HDR.

“LINXS could only advance this position after securing the LAWA Settlement because claims of fundamental design defects by its own design team would otherwise have provided LAWA with powerful defenses against LINXS’ claims for delay and compensation,” lawyers for the company have argued.

Both cases are ongoing.

Companies that create and manufacture personal delivery devices, those cute bots you see on public sidewalks, have been working on growth plans for years.

Cities, on whose public sidewalks the delivery bots travel, are only now catching up to regulating them and charging the companies fees.

That's what's happening in Glendale, where, City Councilman Dan Brotman says, “[The delivery bots] just appeared out of nowhere. The company that operates [them] never reached out and talked to us."

He and other council members, he said, want to know if the delivery devices make it harder for Glendale residents using wheelchairs to use public sidewalks.

“I also am curious who is getting the financial benefit from these,” he said.

Glendale’s City Council asked city staff last month to draft two proposals, one with regulations and fees and the other pausing the operation of delivery bots while the council studies their impact. Brotman said staff may deliver those proposals to him and his colleagues in the months to come.

The two largest cities in LA County, at two different stages

The City of Los Angeles approved rules for personal delivery devices a few years ago, including flat permit fees. The City Council has since asked staff in the Department of Transportation to revaluate those rules and make suggestions.

One idea being considered — charging companies for every bot trip instead of the flat fee.

A delivery robot sits next to the bike path by the beach

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Courtesy Coco

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L.A. City Councilwoman Eunisses Hernandez successfully introduced the motion last year to have the regulations revisited. 

“[The companies are] starting to put movie ads or show ads, and if they're generating revenue off that, we want to know what that looks like but also be able to have a fee for them,” Hernandez said.

That report should be presented to the City Council later this year, she said. 

She’s also keen to hear from the public about their views on delivery bots. 

Companies that make the devices argue they’re providing an essential delivery service to residents while cutting down on the number of vehicles on the road making the deliveries.

“We currently pay fees in Los Angeles, Chicago and West Hollywood as part of their permit programs and are open to similar models in other cities,” said Vignesh Ram, vice president of policy at Serve Robotics, by email.

Starship Technologies' delivery robot exits the elevator in the company's office.

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Meg Kelly

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NPR

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The company is now operating in Long Beach; Ram says it notified the city before beginning to operate there.

A City of Long Beach spokesperson told LAist its business licensing, planning and public works teams are currently working on recommendations for regulations. Those should be presented to the City Council early this summer.

The story first appeared on The LA Local.

When Hermila Melero trains future therapists at Cal State LA, she emphasizes something she learned over nearly two decades working on the Eastside: It matters where you’re from. 

“When you know the difference between East LA and Boyle Heights … they appreciate that on a really fundamental level,” Melero, director of field education at CSULA’s School of Social Work, said. “You feel a sense of safety and being seen when the person reflects what you look like, has a foundational understanding of where you come from.” 

Now, a $48 million grant to California State University, Los Angeles, will open new opportunities for students to serve the communities they come from. The funding will expand the university’s social work and counseling programs, training 1,000 new students to support youth mental health in Eastside communities and other underserved areas of Los Angeles.

What will the funding do?

The five-year investment by the Ballmer Group — the largest grant in the university’s history — will significantly grow Cal State LA’s Master of Social Work program. 

Its one-year MSW program will double in size, the two‑year program will increase by 50%, and the School-Based Family Counseling program will also double. The bulk of the funding will support scholarships, new faculty and the expansion of clinical placements.

Cal State LA already partners with organizations across the Eastside, including El Centro De Ayuda, AltaMed, Survivor Justice Center and schools across LAUSD. The new funding will allow more students to work directly with these groups, serving families who often lack access to care. 

“This speaks to the amazing work our social work and counseling programs are doing within our schools and with LA’s agencies serving youth and families,” said CSULA President Berenecea Johnson Eanes in a statement to Boyle Heights Beat. “With more clinical placements and greater numbers of master’s alumni, we will make real strides in meeting a critical shortage of qualified social workers and counselors.”

In addition to CSULA, CSU Dominguez Hills received $29 million to expand mental health resources in South LA and UCLA will use part of its $33 million grant to develop a minor in youth behavioral health. The three universities have received a total of $110 million. 

When Hermila Melero trains future therapists at Cal State LA, she emphasizes something she learned over nearly two decades working on the Eastside: It matters where you’re from.

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Courtesy CSULA

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Why representation matters

For Melero, who was born and raised in East LA, the expansion is personal. 

Melero spent 17 years of her professional career as a social worker in her own community and the surrounding areas. She witnessed firsthand how much her patients appreciated it when she spoke to them in Spanish or told them where she grew up. 

“You don’t have to explain yourself, you don’t have to explain what it’s like, you know, to grow up here,” she said. 

Now as director of field education, she helps place students in organizations, clinics and schools across the region, many of them serving the neighborhood they call home. 

Barriers to access

The need for more mental health workers comes at a time when many Eastside families are facing more barriers to care.

Stigma around mental health combined with fear tied to immigration raids have discouraged some people from seeking services, Melero said.

At the same time, financial challenges are making it harder for students to enter the profession. 

In January, the U.S. Department of Education updated its definition of a “professional degree” and excluded social work, which will affect graduate students’ eligibility for federal student loans, creating a significant financial barrier, according to the Council on Social Work Education.

Students hope to give back

For students like Silvia Perez, 41, financial assistance would be a great help.

The Cal State LA undergraduate student is pursuing her master’s degree after she graduates in May, all while raising two teenagers and a 23-year-old. Perez has been paying for her education by selling shoes and perfume outside of her home in East LA. 

Her decision to pursue a career in social work came after seeing her sister navigate the Department of Children and Family Services system with her children and witnessing how young people in her community struggled with substance abuse and homelessness. 

After graduating, Perez hopes to work in East LA to help the people she encounters every day. She believes that level of understanding can create trust with an already vulnerable population.

“I would like to help the people in my community first…I live the daily life that everyone else in my community faces,” she said.

For more information on CSULA’s MSW programs, click here.

Editor’s Note: The LA Local also receives support from the Ballmer Group.

This story was originally published by CalMatters. Sign up for their newsletters.

California scored a legal victory Monday that for now, undermines the Trump administration’s efforts to drastically cut funding for homeless housing.

Changes that would have diverted huge chunks of federal funds away from permanent housing and funneled them instead into temporary shelters and sober living programs will remain suspended after the Trump administration dropped its appeal of an earlier court loss. While the broader case is still being litigated, the new development could provide some reassurance to California counties waiting for the federal funds.

“We continue to fight for Californians and the rule of law, and we continue to win,” Attorney General Rob Bonta said in a news release. “People experiencing housing insecurity or homelessness need the federal government’s continued support — not a rollback of assistance.”

In November, the federal Department of Housing and Urban Development attempted to change the way it doles out money for homeless services via its Continuum of Care program. It decreed that jurisdictions applying for a piece of about $4 billion in federal homelessness funds can’t spend more than 30% of that money on permanent housing — a move that would result in a significant cut to the type of long-term housing that can resolve someone’s homelessness.

Last year, California communities spent about 90% of their federal Continuum of Care funds on permanent housing.

Gov. Gavin Newsom’s administration quickly joined 19 other states and the District of Columbia in suing to stop the Trump administration’s changes. In December, a federal judge in Rhode Island temporarily blocked the changes and ordered HUD to process funding applications under the original rules. The Trump administration appealed that ruling, leaving local governments and homeless service providers unsure of what they would be awarded funding for, and when.

The federal government on Monday dropped its appeal. While the rest of the lawsuit will move forward, and could take months to resolve, counties should be able to access permanent housing funds in the meantime.

Instead of prioritizing permanent housing, as has been the rule in the past, the Trump administration wants to focus more on shelters that get people off the streets quickly and temporarily, and on programs that require residents to be sober. HUD also attempted to ban the use of federal homelessness funds for diversity and inclusion efforts, support of transgender clients, and use of “harm reduction” strategies that seek to reduce overdose deaths by helping people in active addiction use drugs more safely.

A HUD spokesperson said the agency stood by its funding reforms.

“HUD remains committed to reforming the failed ‘Housing First’ approach and restoring the Continuum of Care program to its core objectives; reducing homelessness and promoting self-sufficiency for all vulnerable Americans, ensuring taxpayer dollars are directed towards those goals,” a spokesperson said in a statement.

HUD experienced another legal setback last month when a federal judge in Rhode Island shot down the agency’s attempt to upend another, smaller, source of federal homelessness funding. At issue in that case was a program called the Continuum of Care Builds grant, which funds the construction of new homeless housing. HUD last year made grantees reapply under a very different set of criteria, which seemed to disqualify organizations that support trans clients, use “harm reduction” to prevent drug overdose deaths or operate in a “sanctuary city.”

About $75 million in federal funds had been frozen as that case moved forward.

In March, the court found HUD violated the law through its “slapdash imposition of political whims.”

“This ruling is a victory for people across this nation who have overcome homelessness and stabilized in HUD’s permanent housing programs,” Ann Oliva, chief executive of the National Alliance to End Homelessness, which filed the lawsuit, wrote in a statement. “Today’s news reinforces a fundamental truth: that the work to end homelessness is not partisan, and never should be interfered with for political means.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.