To keep project on track, CA High-Speed Rail officials mull giving CEO more power
AI-generated summary reviewed by our newsroom.
- Board members debated whether CEO Choudri should have increased contracting authority.
- Choudri can execute contracts up to $25 million; $100 million was discussed.
- Some members warned that board oversight is needed for responsible taxpayer spending.
In an attempt to keep California’s bullet train project on track, several California High-Speed Rail Authority board members are questioning whether to cede more authority over expensive contracts to CEO Ian Choudri.
The debate comes as the rail authority attempts to secure materials worth hundreds of millions of dollars from various manufacturers that the agency needs to start track construction in the Central Valley by the end of the year. Some board members say reviews are needed for responsible spending of taxpayer dollars, but others want to consider increasing Choudri’s contracting authority to ensure the project doesn’t fall further behind schedule.
Choudri has the authority to execute new contracts of up to $25 million without board review. Board member Anthony Williams said he wants to discuss raising the cap on Choudri’s contract execution power to $100 million — equal to the amount he is allowed to authorize for change orders.
“I would be curious to understand why they shouldn’t be the same,” Williams said to Choudri. “It allows you to focus on what you should focus on, and for us to focus on what we should focus on.”
If track installation begins this year, it would come 18 years after California voters first approved $9.95 billion in bonds for a Los Angeles-to-San Francisco system initially projected to cost $45 billion. Years of court disputes, sluggish land acquisitions and other problems have led to almost $15 billion in spending and public doubts that the rail authority can deliver the project’s original vision.
The rail authority quickly completed a 150-acre railhead facility near Wasco that is ready to receive and send out materials for track construction. But the agency must finalize deals with the companies that want to supply those materials and a company that wants to begin installing them.
Board member says review delayed CA high-speed rail work for weeks
The high-speed rail board on Wednesday considered awarding a $56.9 million contract for cable troughs, a material needed for track construction.
The board voted unanimously to approve the contract, but some members questioned why the contract needed their approval in the first place.
The rail authority last year decided to begin seeking bids from manufacturers for six types of rail materials, with a total cost not to exceed $507.1 million, necessary for track construction on the 119 miles between Madera and the Shafter area. The board authorized Choudri in that decision to execute the individual deals for those materials — he’s already contracted for rail and concrete ties this year — even if they exceed $25 million.
The board added cable troughs to the list last month and began seeking bids, but its resolution for that material required the board to review and approve the final contract Wednesday.
“We’ve delayed this five weeks,” said board member Emily Cohen. “We are risking delaying this for a reason that I think is not good enough.”
Answering Cohen’s questions, agency CFO Jamey Matalka said bringing an item to the board for approval can take months. Each one has to go through various approvals before it reaches the board, he said.
“This is not where this board should be,” Cohen continued after Matalka. “I respect and appreciate the board’s role in oversight, but we have to let this high-speed rail team get to work.”
Spending taxpayer money ‘merits oversight,’ says Fresno-area board member
Henry Perea, a rail authority board member from Fresno, said board reviews are necessary and don’t cause many delays “if everybody’s doing their job, including us.” Perea has indicated he’d like to see more contracts and change orders come to the board for review before they’re executed.
“When it comes to spending the money of the taxpayers, I think it absolutely merits oversight by this board to ensure that process was followed, the right person was picked,” Perea said during Wednesday’s meeting.
He added that state lawmakers have told him to “be very judicious of the money that we give you and how you spend it.”
Perea said he has confidence in Choudri, but added that the agency allowed financial problems it shouldn’t have prior to the CEO’s arrival “because of lack of oversight from this board.”
“Moving forward, the CEO and his staff need to be held accountable to the vision that he’s laid out for us, that we’ve supported and we’re funding,” he said.
Board Chair Tom Richards said he would prepare a future discussion on the matter.
