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The drumbeat of bad news on the high-cost rail fiasco just keeps getting louder to the point where the Legislature may shift into opaque mode going forward. From ABC 10 yesterday:

SACRAMENTO, Calif. — California’s High-Speed Rail Board of Directors approved a settlement costing more than half a billion dollars, a move that comes as lawmakers debate how transparent the long-delayed and over-budget project should be.

During a January meeting, the High-Speed Rail Authority’s board of directors approved more than $500 million to settle a dispute with a company contracted to design portions of the project. The settlement was approved as a change order, meaning it involved changes within an original contract, and the amount was decided during a closed session meeting.

“Negotiate and finalize an appropriate settlement change order with DFJB up to an amount of $537.3 million,” said Adam Brezine, chief counsel for the High Speed Rail Authority.

I can’t help but think that number is probably right around what we are short to do the Broadway grade separation. Hundreds of millions flying out the door due to incompetence. And the going forward solution?

Citing those delays and concerns, (Assemblywoman Lori) Wilson introduced Assembly Bill 1608, which would provide additional tools for the Office of the Inspector General to conduct audits of the high-speed rail project.

However, the bill includes language that would prohibit the inspector general from making a report public if it determines the report would, in part, “reveal weaknesses that could be exploited by individuals.”

Wilson says she is open to amendments or clarifications, and that “weaknesses” is a standard audit term. Audits exist to find weaknesses and there are plenty to choose from on high-cost rail. Let’s air the dirty laundry so we can stop bleeding. That’s a change order I can live with.

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3 responses to “High-Cost Rail- Part 166: Another half billion gone”

  1. perfectly1a88429a33

    This project was the democrat party whoring themselves out to labor for their current and future votes. Be careful of their intentions before you pick up that bar of soap!

  2. Joe

    I’m going to cross-post this comment to the Mahan: From San Jose to Sac post as well. I seldom do this, but it fits in this instance.

    I had a chance to hear Matt Mahan on-line discussing a wide variety of issues as interviewed by David Crane of Govern for California–a close observer of California politics. Mahan comes across well–thoughtful and articulate. When Crane asked for his thoughts on high-speed rail, Mahan retorted “Oh, gosh” and went silent for a bit.

    He then went on to recite how “everything has gone wrong”. Right of way, Eminent Domain, CEQA impact, etc., but no mention of the cost overruns. So far, so good. He then went on to say, “we should finish the first segment” and then look at the “Valley to Valley” segment to enhance commutes to Silicon Valley jobs.

    For a guy with a variety of business experience and major of the largest city in NorCal, he seemed comfortable with pouring more good money after bad. There was no sense of cutting bait on sunk costs. He said he had lived in Boston and New York and that the Northeast did transit well so we could do the same. No mention of how to fix the mess we have here now. One can only hope that if elected he would make the logical, responsible move.

  3. Joe

    The big news on high-cost rail had nothing to do with the project itself. The CHSRA CEO, now known as Choo Choo Choudri, and his fiancé were arrested in Folsom on suspicion of domestic battery, got released very quickly with no charges filed and he is now “on leave”. From the LA Times:

    The day before his arrest, Choudri had appeared with Newsom in Kern County to announce the completion of a 150-acre facility that would serve as a hub for construction of the high-speed rail project in San Joaquin Valley.

    Choudri is among the highest-paid state employees in California, having earned $563,000 last year, according to payroll records obtained by The Times from the state controller’s office.
    —————————–
    Half a billion, half a million…. In other news Choudri’s fiancé has been hired by KPMG which has a $24 million financial advisory contract with CHSRA. KPMG is a big firm and per the SacBee

    “KPMG has confirmed to the California High-Speed Rail Authority that Ms. Starostyuk has not performed work under the KPMG/Authority contract and that there are no plans for her to do so in the future,” an agency spokesperson said in an email on Thursday.

    Read more at: https://www.sacbee.com/news/politics-government/capitol-alert/article314739721.html#storylink=cpy

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