The California High-Speed Rail Authority is moving to settle litigation, a deal that would trigger the single most expensive change order in the project’s history at $537.3 million.The more than half-a-billion-dollar settlement has led some state lawmakers to believe it is the driving force behind a proposal that would allow the project’s inspector general to keep some project records secret if they reveal weaknesses that could harm the state, which the High-Speed Rail Authority denies. The proposal was filed the day before the High-Speed Rail Authority’s Board unanimously approved a settlement change order with Dragados Flatiron Joint Venture for up to $537.3 million on Jan. 21. The construction company oversees the design-build for the project’s 65-mile route located within Fresno, Tulare and Kings counties. The settlement change order would represent the project’s most expensive change order since it began, according to High Speed Rail Authority records. In construction, a change order is an official change to the project’s original contract. It can mean more work, different work, or unexpected issues—and usually more time or more money. That’s been the case hundreds of times for Dragados Flatiron Joint Venture, which has had a total of 597 change orders since the project started, records show. The latest settlement would bring the total dollar amount of the company’s change orders to well over $1 billion. A spokesman for the California High-Speed Rail Authority denied that there is any connection between the litigation settlement and the bill that could shield some project records from the public. “This action reflects the Authority’s renewed commitment to delivering with urgency and accountability,” said Micah Flores, the rail authority’s spokesman, referring to the change order. “It resolved outstanding claims and critically, ties payment to achieving defined performance milestones and completing the work necessary to accelerate track-laying this year. We remain focused on converting construction progress into a track-ready corridor as quickly as possible.”Flores said the details of the change order would be posted on the rail authority’s website soon.Republican Assemblywoman Alexandra Macedo, who represents Tulare, Kings and Fresno counties, said she thinks the latest litigation settlement prompted the proposal to keep some project information secret. “That’s the kind of stuff we can hide with this new bill,” she said, noting the proposal aims to shield weaknesses that don’t serve the interest of the state. “The inspector general’s report has been gold. But now to add another layer of secrecy to a project that has been scrutinized for its lack of transparency, for its lack of results, for its failure on promises and now amidst all of the claims of fraud, waste and abuse, lawmakers think this is a good idea? Absolutely not.”Democratic Assemblywoman Lori Wilson, who leads the Assembly’s Transportation Committee, said the proposal is meant to give the Office of the Inspector General confidentiality tools that are provided to other government agencies and is not meant to shield cost information from the public. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channelKCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.
SACRAMENTO, Calif. —
The California High-Speed Rail Authority is moving to settle litigation, a deal that would trigger the single most expensive change order in the project’s history at $537.3 million.
The more than half-a-billion-dollar settlement has led some state lawmakers to believe it is the driving force behind a proposal that would allow the project’s inspector general to keep some project records secret if they reveal weaknesses that could harm the state, which the High-Speed Rail Authority denies.
The proposal was filed the day before the High-Speed Rail Authority’s Board unanimously approved a settlement change order with Dragados Flatiron Joint Venture for up to $537.3 million on Jan. 21. The construction company oversees the design-build for the project’s 65-mile route located within Fresno, Tulare and Kings counties. The settlement change order would represent the project’s most expensive change order since it began, according to High Speed Rail Authority records.
In construction, a change order is an official change to the project’s original contract. It can mean more work, different work, or unexpected issues—and usually more time or more money.
That’s been the case hundreds of times for Dragados Flatiron Joint Venture, which has had a total of 597 change orders since the project started, records show. The latest settlement would bring the total dollar amount of the company’s change orders to well over $1 billion.
A spokesman for the California High-Speed Rail Authority denied that there is any connection between the litigation settlement and the bill that could shield some project records from the public.
“This action reflects the Authority’s renewed commitment to delivering with urgency and accountability,” said Micah Flores, the rail authority’s spokesman, referring to the change order. “It resolved outstanding claims and critically, ties payment to achieving defined performance milestones and completing the work necessary to accelerate track-laying this year. We remain focused on converting construction progress into a track-ready corridor as quickly as possible.”
Flores said the details of the change order would be posted on the rail authority’s website soon.
Republican Assemblywoman Alexandra Macedo, who represents Tulare, Kings and Fresno counties, said she thinks the latest litigation settlement prompted the proposal to keep some project information secret.
“That’s the kind of stuff we can hide with this new bill,” she said, noting the proposal aims to shield weaknesses that don’t serve the interest of the state. “The inspector general’s report has been gold. But now to add another layer of secrecy to a project that has been scrutinized for its lack of transparency, for its lack of results, for its failure on promises and now amidst all of the claims of fraud, waste and abuse, lawmakers think this is a good idea? Absolutely not.”
Democratic Assemblywoman Lori Wilson, who leads the Assembly’s Transportation Committee, said the proposal is meant to give the Office of the Inspector General confidentiality tools that are provided to other government agencies and is not meant to shield cost information from the public.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.