Tag Archive for California High-Speed Rail

California High-Speed Rail Proving to Be Key Issue for November 2014 Elections

On June 10, 2014, the U.S. House of Representatives voted on an amendment to a transportation appropriations bill to prohibit federal funds from being used for high-speed rail in the State of California or for the California High-Speed Rail Authority. It was offered by Congressman Jeff Denham (R-California), chairman of the Subcommittee on Railroads, Pipelines and Hazardous Materials of the U.S. House Committee on Transportation and Infrastructure.

The amendment passed 227-186. See Congressional Record – Roll Call #288.

Six Democrats voted YES on the amendment. Four were from California. Why did they vote YES?

California’s Ten Most Vulnerable Democrat Members of Congress and Their June 10, 2014 Votes on Cutting Off Federal Funding for California High-Speed Rail

California Ten Most Vulnerable Democrat Members of Congress and California High-Speed Rail Vote

Debate on the Amendment (from the Congressional Record)

Source: http://beta.congress.gov/congressional-record/2014/06/10/house-section/article/H5212-2

Amendment Offered by Mr. Denham

Mr. DENHAM. Mr. Chairman, I have an amendment at the desk.

The Acting CHAIR. The Clerk will report the amendment.

The Clerk read as follows:

At the end of the bill, before the short title, insert the following:

Sec. __. None of the funds made available by this Act may be used for high-speed rail in the State of California or for the California High-Speed Rail Authority.

The Acting CHAIR. The gentleman from California is recognized for 5 minutes.

Mr. DENHAM. Mr. Chairman, this is a very simple amendment. Again, it reads: “None of the funds made available by this Act may be used for high-speed rail in the State of California or for the California High-Speed Rail Authority.”

As chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials, I am a big supporter of high-speed rail. I have seen some of the greatest high-speed rail in other countries, and here, even in the United States, we are going to see the first high-speed rail in Texas and then in Florida–two projects that are moving forward with private dollars.

Yet, in California, in 2008, we passed Proposition 1A, which was a guarantee to the voters that a $33 billion project would not only be built but would be built on time, with equal parts of funding from the State voters, from the Federal Government, hopefully, and then from the private investors. Today, 5 years later, after $3.8 billion in stimulus funds for shovel-ready projects were dedicated to this, still not one shovel is in the ground. It is a project that has been held up in court. The $9.95 billion cannot be used, and there are no private investors.

So the question is: Why should the Federal Government be putting more money into a project that is nonexistent today?

It is a project that, even by its own definition, is $32 billion short, not in the project, but in the initial operating segment, which is guaranteed to the voters to be completed. This is a project that has grown out of control. When they found out that they were in default in April, rather than fixing the problem, they committed to next year’s budget, utilizing $250 million in cap-and-trade funding.

There is a reason the judges have struck this down to this point, and there is a reason that voters wanted to have this go back before them: it is a project that has no end in sight. Again, no shovels have been put into the ground even though the Federal Government has obligated $3.8 billion–money that could be used for other priorities. Today, we are in a situation. With a $32 billion shortfall, there is no proposal from the President to fill that gap, and there is no proposal from the Governor to fill that gap. Yet there is the hope that the Federal Government will continue to find new money to throw at something that is nonexistent.

This doesn’t meet the Prop 1A guarantee. There is no State match, and the cost has more than doubled. Again, the jobs that have continued to be talked about for the last 5 years are nonexistent.

Mr. Chairman, I would urge an “aye” vote on this amendment. We have got to stop this train wreck.

I yield back the balance of my time.

{time} 1530

Ms. LOFGREN. Mr. Chairman, I rise in opposition to the amendment.

The Acting CHAIR. The gentlewoman from California is recognized for 5 minutes.

Ms. LOFGREN. Mr. Speaker, on behalf of the California Democratic congressional delegation, I rise in opposition to this amendment.

This misguided amendment would prohibit additional Federal investment in California’s high-speed rail project. As we know, California is in the midst of constructing the Nation’s first truly high-speed rail system.

[[Page H5215]]

The project was approved by a strong majority of California voters in 2008 because we Californians know that high-speed rail is the most effective and environmentally sustainable way to increase mobility across the State.

Now, the project is already creating jobs for Californians. In fact, more than 70 firms that have committed to performing work on this project have offices in the Central Valley, and many of these firms, happily, are veteran-owned.

In San Jose, the California high-speed rail project is already providing immediate benefits by investing $1.5 billion in the Caltrain Modernization Program. This program will create over 9,500 jobs, over 90 percent in the San Francisco Bay area.

Now, the government’s independent watchdog, the GAO, conducted an extensive audit of the project. And you know what? They gave high marks to the authority’s business plan for high-speed rail.

Members of Congress are right to conduct proper oversight of infrastructure projects across the country. However, regardless of your views on the merits of this project, I think most of us would agree that attempting to kill a single project through the appropriations process is bad public policy and sets a horrible precedent.

I would note that electrified trains are really part of the future. China already has 5,000 miles of high-speed rail, and they intend to double that. Spain has 1,600 miles of high-speed rail, and they are building more. More than a dozen other countries have their own successful high-speed rail systems. Even Morocco is building a high-speed rail system. But we don’t have anything in the United States except for what California is doing.

I would note that California is almost always on the leading edge of progress for our country. We are leading in energy conservation. We are leading in alternative energy, and we have the best public university, the University of California, in the entire United States. We always lead.

Now, it is important that the State of California has identified an ongoing source of funds to support high-speed rail, and that is the cap-and-trade funds. Is that appropriate? Yes, it is, because the cap-and-trade funds are generated through energy conservation, and the high-speed rail system is going to help move Californians in an environmentally suitable way.

It is important to be visionary here. You know, when we started building the interstate highway system, when the first mile of highway was built, we didn’t know that 50 years later we would still be identifying interstates to build.

We need to begin with high-speed rail in California. California is behind this project. The California Democratic delegation is behind this project.

I urge my colleagues to reject the amendment, put our neighbors back to work, and allow California to continue building the Nation’s first true high-speed rail project. We will all be proud of that project as it nears completion.

Mr. Chairman, I yield back the balance of my time.

Mr. LaMALFA. Mr. Chairman, I move to strike the last word.

The Acting CHAIR. The gentleman from California is recognized for 5 minutes.

Mr. LaMALFA. Mr. Chairman, I rise in support of Mr. Denham’s amendment.

High-speed rail has been a boondoggle in California pretty much since day one. The voters, when they had it presented in front of them as Prop 1A in the 2008 election, they were shown a $33 billion project that would connect San Francisco to Los Angeles with a continuous high-speed rail project.

What we found out, within 3 years, was after the price went up initially $45 billion, that a true audit turned out it would be $98.5 billion. After that, the Governor real quick decided to change the project and use the connectivity of the Bay Area and Los Angeles, their local systems, to make up for it, which is illegal under Prop 1A. It has to be continuing from San Francisco to LA. You can’t use local transit systems under Prop 1A.

So now what we see is that they were able to downsize the cost to only $68 billion over what the voters, by a 52 percent, not an overwhelming margin, merely 52 percent, approved.

They were sold a bill of goods. That is why we shouldn’t spend another Federal dollar or State dollar which enables–the Federal dollars enable the State dollars to be spent. We need to stop that here until they come up with a real plan that shows the financing.

They haven’t shown the financing yet. We can identify $3 billion worth of Federal money, $9.95 billion worth of State money, approximately $13 billion for a project in the downsized illegal form that is only $68 billion, they say.

Where does the other $55 billion come from?

They have no idea. There is no private sector money. There is no more Federal money that is going to happen, other than the $3 billion that has been captured from the stimulus package of a couple of years ago.

We need to take that money and channel that into something else that we need to do desperately, such as our transportation infrastructure which we are speaking about here this week. Or in California we have a desperate need for water supply during our drought, instead of a boondoggle which is going to pave through a bunch of our ag land in California, as well as important other infrastructure.

What do we hear about it?

Oh, it is going to save CO2. It is going to be a panacea for global warming. You know, for 30 years it won’t even help toward this project of global warming. Instead, part of their plan is they are going to have to plant trees to offset the construction of high-speed rail because it is going to have a higher CO2 footprint than what we already have.

It is boondoggle after boondoggle. We talk about jobs. These aren’t real jobs. The numbers have been inflated since day one. They tried to tell us 3 years ago that it was going to cause a million new jobs for California.

When we finally pinned them down in a State committee, they said, well, that means a million job years. It turns out to be it might be 5,000, 10,000 jobs under construction, not a million jobs. It is deceit after deceit.

We need to plow this money that we have federally back into something that would help our transportation infrastructure in California or in the Nation, help build water supply, anything but this project here, which is full of deceit and empty promise after empty promise.

Mr. Chairman, I yield back the balance of my time.

Mr. PASTOR of Arizona. Mr. Chairman, I move to strike the last word.

The Acting CHAIR. The gentleman is recognized for 5 minutes.

Mr. PASTOR of Arizona. Mr. Chairman, I rise in opposition to the amendment, and I yield to the gentlewoman from California (Ms. Lofgren).

Ms. LOFGREN. I thank the gentleman from Arizona. I just wanted to make a couple of quick points. First, it is easy to be a critic and it is hard to be a builder. The high-speed rail project is a big project, it is difficult to do, but we are going to get it done.

Sometimes I wonder, when people say don’t do high-speed rail, how they plan to deal with the millions of additional Californians that are anticipated to clog our roads and need transportation infrastructure.

It has been suggested by dispassionate engineers that we would need at least two or three additional airports in California. We would need several, as many as five, additional lanes, north-south, in the middle of California to match the capacity of high-speed rail.

How are we going to do that?

Do we think that that is not going to be expensive?

The alternative to high-speed rail is not nothing. That is impossible for a State as vibrant as California, with an economy as booming as it is, and a future as bright as we have.

I would note also that the idea that it is inappropriate to use cap-and-trade funds, I just simply disagree with. California is among the first in the Nation, I would say, and it has got wide approval in the State, to do this cap-and-trade system, to bring down carbon emissions. Funds will be generated through that project. Some of those funds will go to this very worthy project. So I disagree very much with this amendment. I don’t believe that we will be successful–my God, I hope we are not–in stopping this visionary project that is going to allow the State of California to continue to prosper and for transportation north-south needs to be met into the future.

I thank the gentleman for yielding.

Mr. PASCRELL. Mr. Chairman, I yield back the balance of my time.

The Acting CHAIR. The question is on the amendment offered by the gentleman from California (Mr. Denham).

The question was taken; and the Acting Chair announced that the ayes appeared to have it.

Mr. DENHAM. Mr. Chairman, I demand a recorded vote.

The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on the amendment offered by the gentleman from California will be postponed.

Revised: A Timeline of Activity Concerning What Will Be $9.95 Billion Borrowed through Proposition 1A Bond Sales for California High-Speed Rail

UPDATE – April 13, 2014: I’ve added information at the bottom of the chart below based on two additional Official Statements issued by the State of California since I wrote the original article.

“Long-Term Bonds Outstanding” for California High-Speed Rail Prop 1A remained at $703,530,000 as of September 1, 2013 but dropped (for the first time) to $623,705,000 as of February 1, 2014.

I presume some of the money borrowed by the State of California through these bond issues is being used to fund the “connectivity projects” authorized for $950 million in a part of Proposition 1A (now California Streets and Highways Code Section 2704.095):

2704.095. (a) (1) Net proceeds received from the sale of nine hundred fifty
million dollars ($950,000,000) principal amount of bonds authorized by this
chapter shall be allocated to eligible recipients for capital improvements to
intercity and commuter rail lines and urban rail systems that provide direct
connectivity to the high-speed train system and its facilities, or that are part of
the construction of the high-speed train system as that system is described in
subdivision (b) of Section 2704.04, or that provide capacity enhancements and
safety improvements. Funds under this section shall be available upon
appropriation by the Legislature in the annual Budget Act for the eligible
purposes described in subdivision (d).

SB 1029 (enacted in July 2012) appropriated $819,333,000 for state, regional, and local agencies other than the California High-Speed Rail Authority to help fund connectivity projects. (Note: this does not include the $1,100,000,000 appropriated for “bookend” projects, which includes $600,000 to electrify and update the Caltrain rail system and $500,000 to upgrade unspecified rail systems under a Southern California Memorandum of Understanding with the California High-Speed Rail Authority.)

Some questions to which I don’t know the answers:

  1. Why did the amount for “Long-Term Bonds Outstanding” go down between September 1, 2013 and February 1, 2014?
  2. How was the California State Treasurer able to issue bonds under Proposition 1A before the state legislature appropriated money in July 2012?
  3. Have any of the proceeds from Prop 1A bonds been spent on “bookend projects?” What happens if some of the $1.1 billion appropriated for “bookend” projects is spent but doesn’t become part of the California High-Speed Train System in the end? Will that money be transformed into connectivity funding?

Are the $1,274,000,000 in appropriations listed below for “Connectivity?” Or are they for “Bookends?” (Only $950,000,000 Can Be Spent Outside of High-Speed Train Service)

$706,000,000 Peninsula Corridor Joint Powers Board (Caltrain) – Electrification Installation of an electric rail system that phases out diesel trains and blends the Caltrain system with the high-speed rail line. With matching funds, total spending is $1.456 billion.
$42,000,000 Peninsula Corridor Joint Powers Board (Caltrain) – Advanced Signaling System: Communications Based Overlay Signal System (CBOSS) Positive Train Control (PTC) Project Design, installation, testing, training and warranty for an intelligent network of signals, sensors, train tracking technology, computers, etc. on the Caltrain Corridor to meet mandated federal guidelines. With funds from BART and the Santa Clara Valley Transportation Authority, total spending is $231 million. This work began in September 2013.
$26,000,000 Santa Clara Valley Transportation Authority (Caltrain) – Advanced Signaling System: Communications Based Overlay Signal System (CBOSS) Positive Train Control (PTC) Project Design, installation, testing, training and warranty for an intelligent network of signals, sensors, train tracking technology, computers, etc. on the Caltrain Corridor to meet mandated federal guidelines.
$500,000,000 Southern California Memorandum of Understanding Regional rail projects that improve local networks and facilitate high-speed rail travel to Southern California. Projects will be selected by local transit agencies, in conjunction with the High-Speed Rail Authority, and state funding will be matched by additional investments to make the total investment in these projects $1 billion.

Original Post – May 13, 2013: It seems that 99.999% of Californians are unaware of how, when, and how much the State of California has borrowed for California High-Speed Rail by selling bonds to investors. My requests at two board meetings of the California High-Speed Rail Authority to be open and transparent about the details of the bond sales – even to the point of having an agenda item at each meeting dedicated to the topic – have been ignored, of course. Their strategy is to keep the public and the news media uninformed, probably because the details are not comforting.

It appears the California State Treasurer has sold about $700 million worth of Proposition 1A bonds to date. While early bond sales for California High-Speed Rail appear to be segregated from bond sales for other purposes, recent sales suggest that California State Treasurer Bill Lockyer was correct when he said the high-speed rail bonds were “mixed together” with bonds for other purposes. That was his response to my questions at the California League of Bond Oversight Committees annual conference on May 10, 2013. Someone in the bond industry told me this mixing was “unusual,” but perhaps we’re misunderstanding what’s going on.

People have asked me how the state was able to sell California High-Speed Rail bonds before the legislature and governor first authorized the sale of bonds in July 2012. I do not know.

I have not been able to figure out how much in interest has been paid so far, where the money was obtained to pay the interest so far (perhaps appropriations for the California High-Speed Rail Authority from the General Fund?), and the current debt service on the bonds.

Basically, we’re all ignorant peons left in the dark by the forces that control everything.

Here’s a preliminary timeline of activity concerning bond sales for California High-Speed Rail, with links to source documents. It’s nothing great, but it’s a step in the right direction for people to fill in the blanks and try to figure out what’s going on. If you see a mistake or know something to be added to it, please let me know.

Amount Borrowed Through Bond Sales (Principal, Does Not Include Interest) Date and Action Link to Source Documents
$0 August 26, 2008 – Governor Schwarzenegger signs into law Assembly Bill 3034, which puts the “Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century” (Proposition 1A) on the November 4, 2008 California ballot. According to the bill, the state would borrow $9.95 billion through bond sales in order to “encourage the federal government and the private sector to make a significant contribution toward the construction of the high-speed train system.” Borrowed money would be available for the California High-Speed Rail Authority to spend under specified conditions and criteria for planning, land acquisition, design, engineering, and construction. The California High-Speed Rail Authority would be required to pursue and obtain other private and public funds, including, but not limited to, federal funds, funds from revenue bonds, and local funds. The California State Treasurer would sell the bonds as authorized by an appointed California High-Speed Passenger Train Finance Committee under terms and conditions specified in committee resolutions. Bonds could have a maturity period as long as 40 years. The committee would consider program funding needs, revenue projections, financial market conditions, and other necessary factors in determining the term for the bonds to be issued. Each year, the state would collect taxes and fees for the General Fund that would pay principal and interest to bond investors. In addition, the board of the California High-Speed Rail Authority could request a loan from the Pooled Money Investment Board to make a loan against the amount of authorized but unsold bonds. Assembly Bill 3034 – Proposition 1A
$0 November 4, 2008 – 52.7% of California voters (including 78.4% of San Francisco voters) approve Proposition 1A. November 2008 Election Results
$0 January 16, 2009 – the High-Speed Passenger Train Finance Committee approves Resolution I under the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizing the issuance of State of California High-Speed Passenger Train Bonds or Commercial Paper Notes in the principal amount not to exceed $32,010,000. The committee also approved Resolution II under the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizing the issuance of State of California High-Speed Passenger Train Refunding Bonds in the aggregate principal amount outstanding not to exceed $32,010,000. January 16, 2009 Minutes – Resolution I – Resolution II
$0 February 1, 2009 – Long Term Bonds Outstanding State Public Works 2009
$0 April 6, 2009 – “The High Speed Rail Authority had been financed via a commercial paper issue.” April 6, 2009 Minutes
>$0< April 15, 2009 – the High-Speed Passenger Train Finance Committee approves Resolution III under the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, (i) amending the provisions of Resolution I authorizing the issuance of State of California High-Speed Passenger Train Bonds or Commercial Paper Notes in the principal amount not to exceed $32,010,000, and (ii) authorizing the issuance of State of California High-Speed Passenger Train Bonds or Commercial Paper Notes in the principal amount not to exceed (a) the principal amount unissued under Resolution I of $32,010,000 and (b) an additional principal amount not to exceed $448,790,000, for a total principal amount not to exceed $480,800,000. The Committee also approves Resolution IV under the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizing the issuance of State of California High-Speed Passenger Train Refunding Bonds in the aggregate principal amount outstanding not to exceed $480,800,000. April 15, 2009 Minutes – Resolution III – Resolution IV
$90,045,000 April 22, 2009 – the California State Treasurer sells $90,045,000 of Safe Reliable High Speed Passenger Train 21st Century Series A Build America Bonds, Federally Taxable.CDIAC Number: 2009-0940 Standard & Poor’s Rating: A Moody’s Rating: A2 Fitch Rating: A –Term: 30 years Rate: VAR%

At the August 6, 2009 board meeting, the Authority executive director noted that this money was a piece of a $4-5 billion state bond sale and would be used by the Authority in FY 2009-10.

2009 Annual Report
$90,045,000 July 1, 2009 – Long Term Bonds Outstanding 2009 Treasurer Publication
$90,045,000 August 1, 2009 – Long Term Bonds Outstanding Official Statement
$90,045,000 October 1, 2009 – Long Term Bonds Outstanding Official Statement
$258,395,000 October 8, 2009 – the California State Treasurer sells $168,350,000 of Safe Reliable High Speed Passenger Train 21st Century Series B Build America Bonds, Federally Taxable. CDIAC Number: 2009-1481 Standard & Poor’s Rating: A Moody’s Rating: Baa1 Fitch Rating: BBB Term: 30 years Rate: 6.933% 2009 Annual Report
$258,395,000 January 20, 2010 – the High-Speed Passenger Train Finance Committee amends Resolution III with resolution V and Resolution IV with Resolution VI. These two resolutions reflect changes to the General Obligation Bond Law that became effective January 1, 2010, and other technical amendments. January 20, 2010 Minutes – Resolution V – Resolution VI
$258,395,000 February 1, 2010 – Long Term Bonds Outstanding Official Statement
$258,395,000 June 30, 2010 – Long Term Bonds Outstanding Official Statement
$258,395,000 October 1, 2010 – Long Term Bonds Outstanding >Official Statement
$309,060,000 November 19, 2010 – the California State Treasurer sells $50,665,000 of Safe Reliable High Speed Passenger Train 21st Century Series C, Federally Taxable.CDIAC Number: 2010-1714Standard & Poor’s Rating: A-Moody’s Rating: A1Fitch Rating: A –Term: 30 yearsRate: 7.438% 2010 Annual Report
$410,050,000 November 22, 2010 – the California State Treasurer sells $100,990,000 of Safe Reliable High Speed Passenger Train 21st Century Series D. CDIAC Number: 2009-1695Standard & Poor’s Rating: A-Moody’s Rating: A1Fitch Rating: A-Term: 30 yearsRate: 5.133% Official Statement – see earlier Official Statement
$410,050,000 June 30, 2011 – Long Term Bonds Outstanding 2011 Annual Report
$410,050,000 September 21, 2011 – High-Speed Passenger Train Finance Committee approves Resolution VII, which amends Resolution III authorizing the issuance of State of California High-Speed Passenger Train Bonds or Commercial Paper Notes in the principal amount not to exceed $480,800,000, and (ii) authorizing the issuance of State of California High-Speed Passenger Train Bonds or Commercial Paper Notes in the principal amount not to exceed (a) the principal amount unissued under Resolution III of $70,750,000 and (b) an additional principal amount not to exceed $59,250,000, for a total principal amount not to exceed $130,000,000. The Committee also approves Resolution VIII under the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizing the issuance of State of California High-Speed Passenger Train Refunding Bonds in the aggregate principal amount outstanding not to exceed $540,050,000. September 21, 2011 Minutes – Resolution VII – Resolution VIII
$410,050,000 August 1, 2011 – Long Term Bonds Outstanding Official Statement
$499,285,000 October 25, 2011 – the California State Treasurer to sell $91,225,000 of Safe Reliable High Speed Passenger Train 21st Century bonds as Series E. Official Statement
$499,285,000 November 1, 2011 – Treasurer Lockyer Comments on Revised High-Speed Rail Business Plan. November 1, 2011 Press Release
$499,285,000 January 1, 2012 – Long Term Bonds Outstanding Official Statement
$499,285,000 February 1, 2012 – Long Term Bonds Outstanding Official Statement
$499,285,000 June 30, 2012 – Long Term Bonds Outstanding 2012 Annual Report
$499,285,000 July 18, 2013 – As required under Proposition 1A, Governor Jerry Brown signs into law Senate Bill 1029, which appropriates $2,609,076,000 in Proposition 1A funds plus $3,240,676,000 in federal funds for the first operating segment of the High-Speed Rail between Madera and Bakersfield, $1,100,000,000 for “Bookend” funding, $106,000,000 to CalTrans for capital improvement projects to intercity and commuter rail lines and urban rail systems that provide direct connectivity, and an appropriation of $713,333,000 for “Connectivity” funding. Senate Bill 1029 (2012)
$499,285,000 February 1, 2013 – Long Term Bonds Outstanding Official Statement
$499,285,000 March 18, 2013 – California High-Speed Rail Authority approves Resolutions #13-03 and #13-04 requesting the California High-Speed Passenger Train Finance Committee to authorize the sale of $8,599,715,000 in bonds. Resolution #13-03 – Resolution #13-04
$499,285,000 March 18, 2013 – the High-Speed Passenger Train Finance Committee approves Resolution IX and Resolution X to authorize sale of $8,599,715,000 in bonds. Resolution X
$499,285,000 March 29, 2013 – the High-Speed Passenger Train Finance Committee previously adopted Resolution III authorizing the issuance of State of California High-Speed Passenger Train Bonds or Commercial Paper Notes in the Principal Amount Not to Exceed $480,800,000 (“Resolution III”) and Resolution VII authorizing the issuance of State of California High-Speed Passenger Train Bonds or Commercial Paper Notes in the Principal Amount Not to Exceed $130,000,000 (“Resolution VII”). As of March 29, 2013, the State had issued $100,990,000 State of California High-Speed Passenger Train Bonds, Series D, currently outstanding in the principal amount of $99,000,000 (the “Resolution III Bonds”) pursuant to Resolution III. $38,775,000 remains in principal amount of bonds or commercial paper notes under Resolution VII, and the Committee now desires to authorize the issuance of bonds to refund any bonds issued from time to time under Resolution VII (the “Resolution VII Bonds”). Resolution XI
$538,060,000 April 11, 2013 – the California State Treasurer to sell $38,775,000 of Safe Reliable High Speed Passenger Train 21st Century bonds as Series F. Official Statement
$703,530,000 April 11, 2013 – the California State Treasurer to sell $165,470,000 of Safe Reliable High Speed Passenger Train 21st Century bonds as Series G. Official Statement
$703,530,000 September 1, 2013 – Long Term Bonds Outstanding Official Statement
$623,705,000 February 1, 2014 – Long Term Bonds Outstanding Official Statement

After Seven Years, California High-Speed Rail Still Lacks Comprehensive and Credible Plan for Financing System

The California State Senate Transportation and Housing Committee held an informational hearing on March 27, 2014 entitled “Toward a World-Class Passenger Rail System in California:  Evaluating High-Speed Rail’s Potential for Success.” (See agendabackground information, a report from the California Legislative Analyst’s Office, and the video of the hearing.)

Of greatest concern to committee chairman Mark DeSaulnier (D-Concord) was the lack of a comprehensive and credible plan for financing the system in the California High-Speed Rail Authority Draft 2014 Business Plan.

Some things never change!

I have saved this old email from Governor Arnold Schwarzenegger’s office forwarding an opinion piece published in the May 4, 2007 Fresno Bee. In it, he claims to support High-Speed Rail but doesn’t want to provide significant money for it in the 2007-08 state budget because “there is still no comprehensive and credible plan for financing the system.” He compares the speculative nature of funding sources for High-Speed Rail with the well-outlined plan for complete funding of projects authorized in a proposed water bond – a ballot measure that has never come before California voters.

See the phrases highlighted in bold font below.


From: governorsofficeofexternalaffairs@gov.ca.gov

Date: Fri, 4 May 2007 08:57:45

Subject: Must Build High-Speed Rail

 

Fresno Bee: State Must Build High-Speed Rail

Governor Arnold Schwarzenegger

As the recent Bay Area freeway collapse illustrated — and as a recent Bee editorial correctly pointed out — Californians need and deserve a diverse array of transportation options. I absolutely believe high-speed rail should be one of those alternatives.

A network of high-speed rail lines connecting cities throughout California would be a tremendous benefit to our state.

Not only would its construction bring economic development and the creation of hundreds of thousands of new jobs, but once completed, we would also see improvements to our air quality, reductions in greenhouse gas emissions, congestion relief on our highways and greater mobility for people living in the Valley and other areas of our state currently underserved by other forms of transportation.

Yet it’s been more than 10 years, and the state has already spent more than $40 million in initial planning for the rail line. But there is still no comprehensive and credible plan for financing the system so we can get construction under way.

The High-Speed Rail Authority, the commission in charge of developing a plan for high speed rail in California, estimates the cost of building the system to be more than $40 billion.

Yet so far, the only financing party identified with specificity is the state, which the Authority proposes float a $9.95 billion bond. The remaining 75% of the project cost, or more than $30 billion, has yet to be identified with any specificity or confidence.

Before asking taxpayers to approve spending nearly $10 billion plus interest, it is reasonable to expect the authority and its advisers to identify with confidence where we will find the remaining $30 billion.

A perfect example of what I’m talking about is my $5.9 billion water infrastructure package. By using a public-private partnership approach, we’ve identified a plan that lays out exactly how we are going to pay for every piece of the proposal, from the reservoirs to the groundwater storage to fixing the Delta to our conservation efforts.

For the reservoir portion, the estimated building cost is $4 billion. We’ve proposed $2 billion in general obligation bonds for the public portion and $2 billion in lease revenue bonds to be paid for by the water users themselves, i.e. water agencies, irrigation districts, cities, etc. And to ensure that this funding materializes, we are requiring that contracts be in place to pay for the lease revenue bonds before public dollars are spent on the projects.

Identifying the exact funding sources for large transportation projects is more problematic, which is why we need the authority to come up with a well-thought out financing proposal before moving forward.

I want to commend the authority for its great progress so far in completing the necessary environmental studies and identifying future rights-of-way that we would need to acquire.

Yet even the authority’s executive director, Mehdi Morshed, says the longer the state waits to build a high-speed rail network, the more expensive it will get. I could not agree more.

That’s why I have directed my recent appointees to work with the authority and its financial advisers to develop a comprehensive plan for financing the project in its entirety, so we can make high-speed rail a reality in California once and for all.

Last year, my administration increased funds for the authority to continue its work, and this year, my budget proposes additional funding.

I am willing to explore multiple approaches in order to fund the balance and execute this project — whether through federal grants, local participation, vendor support, co-development opportunities, public-private partnerships or any other realistic financing plans in which the authority expresses confidence.

I look forward to working with the authority and reviewing its proposal as soon as possible.

But let me be clear: I strongly support high-speed rail for California, and especially for the San Joaquin Valley. Increasing the Valley’s transportation options, especially after voters passed Proposition 1B to repair Highway 99, would better serve the region’s growing population and enhance the Valley’s critical importance to our state’s economy.

The promise of high-speed rail is incredible. Looking forward to the kind of California we want to build 20 and 30 years from now, a network of ultra-fast rail lines whisking people from one end of the state to the other is a viable and important transportation alternative and would be a great benefit to us all.

With a responsible plan in place, we can feel secure in delivering high-speed rail and bringing greater opportunity — and a brighter future — to all Californians.

###

Background

Governor Schwarzenegger had initially included only $1.2 million in his original proposed 2007-08 state budget to keep the California High-Speed Rail Authority operating. (The California High-Speed Rail Authority reportedly had requested $103 million.) The Los Angeles Times reported in the April 29, 2007 article State Puts Brakes on Bullet Train Plan that “Schwarzenegger’s budget would reduce the authority to an office with no more than six full-time employees — without the 75 consulting firms with 300 employees it has now. Outside contracts would need to be canceled, route planning put on hold and environmental and engineering work frozen.” He also proposed again postponing the 2008 ballot measure to authorize bond sales.

Environmental and transit groups criticized this. They claimed he was betraying a commitment to reduce greenhouse gas emissions through Assembly Bill 32, the Global Warming Solutions Act of 2006 that he signed into law.

In the end, the budget signed by the Governor included $1,159,000 for support of the High-Speed Rail Authority.

California High-Speed Rail 2014 Draft Business Plan Doesn’t Depict Project Labor Agreement Accurately or Usefully

By law, every two years the California High-Speed Rail Authority needs to prepare a “business plan,” which includes publishing a draft at least 60 days before final publication so that the public can review it and submit comments to the Authority about it. The Authority is required to “take into consideration comments from the public hearing and written comments” before publishing the final business plan. It is required to approve the final business plan at a board meeting and publish it by May 1, 2014.

My article California High-Speed Rail Business Plan Misrepresents Project Labor Agreement posted on March 18, 2014 in www.UnionWatch.org identifies ten distortions of just one paragraph of the 2014 Draft Business Plan. That paragraph describes the Authority’s “Community Benefits Policy,” which was implemented for construction through a Project Labor Agreement (“Community Benefit Agreement”) with the State Building and Construction Trades Council of California.

The Western Electrical Contractors Association (WECA), Plumbing-Heating-Cooling Contractors Association of California (CAPHCC), Air Conditioning Trade Association (ACTA), and Associated Builders and Contractors (ABC) – San Diego Chapter have already submitted comments to the California High-Speed Rail Authority based on my post about how the 2014 Draft Business Plan depicts the Project Labor Agreement:

March 20, 2014 Comments to California High-Speed Rail Authority on Project Labor Agreement.

I analyzed the provisions of the Project Labor Agreement in detail in my January 11, 2013 post in www.LaborIssuesSolutions.com entitled Analysis of the Phony Community Benefits and Other Provisions in the Union Project Labor Agreement for the First Segment of California’s High-Speed Rail. I also explained the origins of the Project Labor Agreement in my April 29, 2013 post entitled Newly Obtained Documents Reveal Which Elected Official Was the Catalyst for the Project Labor Agreement on California High-Speed Rail: Fresno Mayor Ashley Swearengin.

Here is the final version of the Project Labor Agreement:

Project Labor Agreement with Unions for California High-Speed Rail

To submit comments on the depiction of the Project Labor Agreement or other aspects of the California High-Speed Rail 2014 Draft Business Plan, go to High-Speed Rail Authority Releases Draft 2014 Business Plan.

California High-Speed Rail Could Be Issue in Four Races for Statewide Office

Today (February 11, 2014), my article 4 Democrat-Held Statewide Offices Vulnerable to GOPers Who Focus Campaigns on High-Speed Rail Fiasco is in www.FlashReport.org. It encourages Republicans to run for statewide offices and use the high-speed rail issue in their campaigns:

Four Democrat statewide elected officials are helping the California High-Speed Rail Authority to perpetuate its costly and deceptive operations at the expense of the People of California. At various times, the Governor, Treasurer, Controller, and Attorney General had the authority and the responsibility to serve as an appropriate check and balance against a looming boondoggle. Instead, they chose to support the continuation of the debacle or shirked their duties at pivotal moments, even after a court ended all doubts by confirming that the California High-Speed Rail Authority failed to comply with the law.

As of February 11, 2014, here are the candidates running for these four offices.

Four Democrat-Held Statewide Offices Vulnerable to Republicans Who Focus Campaigns on High-Speed Rail Fiasco

 

Little-Known Facts About the Contract for the First Construction Segment of California High-Speed Rail

As reported by John Hrabe in the January 27, 2014 www.CalNewsroom.com article High-Speed Rail Critics Question Timing Of Rail Firm’s Contribution To Brown Campaign, Governor Jerry Brown’s 2014 re-election campaign committee received the maximum possible contribution of $27,200 on January 21, 2014 from the construction company Tutor Perini.

Tutor Perini is part of the Tutor Perini/Zachry/Parsons joint venture that won the design-build contract for the first construction segment of California High-Speed Rail, a 29-mile stretch from Madera to Fresno. (For detailed information on design-build procurement in California, see Why Lowest Responsible Bidders Don’t Necessarily Win Rail Construction Contracts: Explaining Design-Build Procurement and Best Value Criteria in California Law.)

Three days after the $27,200 contribution was made – and on the day it was recorded by the California Secretary of State – California Attorney General Kamala Harris submitted an extraordinary request to the California Supreme Court on behalf of Gov. Brown, the California High-Speed Rail Authority, and other interested parties. They want the court to grant relief to allow the project to continue, even though a Sacramento County Superior Court judge decided in 2013 that the California High-Speed Rail Authority failed to comply with the law established by Proposition 1A in 2008 and therefore could not sell any of the $9.95 billion in bonds authorized by voters under that statewide ballot measure.

Tutor Perini Contribution to Brown for Governor 2014 Campaign Committee

Tutor Perini Contribution to Brown for Governor 2014 Campaign Committee

As this brazen campaign contribution begins to gain public attention, here is some little-known information about the contract and cost for the first construction segment.

1. Tutor Perini Contract Amount Is Higher Than People Think

An April 12, 2013 press release showed California High-Speed Rail Authority officials were pleased when the low bid for the design-build contract came in under $1 billion.

The Authority had estimated the cost for the design-build contract to be between $1.2 billion and $1.8 billion. The Authority determined that Tutor Perini/Zachry/Parsons, a California-based Joint Venture, who bid $985,142,530, was the “apparent best value.”

But the amount announced to the public is deceptive.

At its June 6, 2013 meeting, the California High-Speed Rail Authority awarded a design-build contract to Tutor Perini/Zachry/Parsons, a Joint Venture, for their fixed bid price of $969,988,000 and hazardous material unit bid price of $15,154,530 for a total bid price of $985,152,530 on “Construction Package 1” (CP-1). This is the 29-mile segment between Madera and Fresno.

There was an additional $53 million included for contingencies, for a total of $1,022,988,000. See this information here:

Approval to Award Contract for Design/Build Services for Construction Package 1 – June 6, 2013

EXECUTION VERSION – Agreement No.: HSR13-06 – Book 2, Part A, Subpart 1 – Signature Document (see Attachment B – Prices)

Since then, a $160 million contingency fund was created for the project, including $20 million for compliance with Buy American provisions for utility relocation.

Approval of Contingency Fund for Construction Package 1 – September 10, 2013

Resolution #HSRA 13-21 – Approval of Contingency Fund for Construction Package 1 – September 10, 2013

This means that the Madera to Fresno construction segment is authorized to cost taxpayers as much as $1,182,988,000.

This amount does not include all of the consulting work beforehand. Pre-construction costs from Merced to Bakersfield are $160 million through September 30, 2013 and authorized for a total of $241 million. (A more specific amount for the Madera to Fresno first construction segment is not available.)

California High-Speed Rail Authority Project Update Report to the California State Legislature – November 15, 2013

Yes, this 29-mile segment is a billion-dollar segment, and that does not include interest to be paid on borrowed money obtained through bond sales.

2. Potential Windfall for Tutor Perini Because of California High-Speed Rail Authority’s “Strange Lack of Competency in Procurement Strategy”

The California High-Speed Rail Authority has completed the environmental review of the Merced to Fresno segment. It is in the process of environmental review for the Fresno to Bakersfield segment.

Construction Package 1 has 25 miles in the approved Merced to Fresno segment and 4 miles in the not-approved Fresno to Bakersfield segment. If the California High-Speed Rail Authority can’t conclude environmental review of the Fresno to Bakersfield segment by July 12, 2014, the Authority has to renegotiate the contract for Construction Package 1 with Tutor Perini/Zachry/Parsons.

This is why the California High-Speed Rail Authority quietly asked the federal Surface Transportation Board for an environmental exemption, which the board has refused to grant while it extends the time period for comment until February 14, 2014. The September 26, 2013 Petition for Exemption from the California High-Speed Rail Authority to the Surface Transportation Board states the following:

The Authority has entered into a design-build contract to construct a 29-mile segment of the HST System, comprised or approximately 5 miles of track and facilities within the boundaries of the Fresno to Bakersfield HST Section in the vicinity of Fresno and approximately 24 miles of track and facilities covered by the exemption granted in the Merced to Fresno Decision. The Authority’s design-build contract requires the Authority to give the contractor separate notices to proceed with construction of the 5-mile and 24-mile segments. The notice to proceed for the 5 miles of track and facilities must be issued by July 12, 2014. If the Authority cannot issue the notice on the 5-mile segment by July 12th, it will be removed from the contract and the Authority will need to re-negotiate the price for the construction of the 24-mile segment and the price and timetable for the 5-mile segment. Since the construction contract does not contain a separate price for the 5-mile and 24-mile segments, this could result in a substantial aggregate increase in the cost of construction of the two segments. There is a possibility that the Board will have a vacancy as of January 1, 2014. Given the Authority’s July 12th notice to proceed deadline, the possibility of a Board vacancy is of concern to the Authority. However, the Board has authority to grant conditional approval of construction exemptions. Although the Board does not do so absent compelling circumstances, there would be compelling circumstances in this case because conditional approval would avoid circumstances which could require the Authority to pay a higher price for the construction of the initial segment of the HST System. Accordingly, if a Board vacancy becomes imminent, the Authority respectfully requests that the Board conditionally grunt this Petition subject to the completion of the environmental review process, and issue a decision effective by December 31, 2013.

Petition for Exemption from the California High-Speed Rail Authority to the Surface Transportation Board – September 26, 2013, and subsequent correspondence

Californians Advocating Responsible Rail Design (CARRD) is harshly critical of what it calls “serious mistakes made by the Authority and its consultants” and “the strange lack of competency in procurement strategy.”

July 12, 2014: What Is the Big Deal?Californians Advocating Responsible Rail Design (CARRD) – December 4, 2013

Justified or not, Tutor Perini and its predecessor firms have a reputation for looking at big urban infrastructure projects and figuring out weaknesses and mistakes that can be exploited later for financial advantage. An April 19, 2013 article in the Los Angeles Times about the low bid for California High-Speed Rail (Bullet Train Bid Rules Altered) hints at that reputation:

Critics have complained that the firm tends to bid low to win contracts and then seeks change orders and contract amendments that increase costs. The firm has handled many major construction projects successfully. But it also has been embroiled in controversies involving accusations of overbilling, fraud and shoddy workmanship related to the Los Angeles subway, San Francisco International Airport and public works projects in New York. Those matters have cost the builder tens of millions of dollars in legal judgments, settlements and penalties.

This reputation for Tutor Perini is also addressed in the UT San Diego April 15, 2013 article Bullet Train Bidder Had Overruns and its April 16, 2013 article ‘Change-Order Artist’ Fights Back.

Anyone who has closely followed the business of the California High-Speed Rail Authority recognizes how it could be a sitting duck. Taxpayers will end up paying the bill.

Unions Virtually Alone in Love with California High-Speed Rail – My Article in www.UnionWatch.org

Today (January 22, 2014) California Governor Jerry Brown made his annual State of the State speech. Last year, he concluded his prepared speech with remarks about California High-Speed Rail:

Last year, you authorized another big project: High Speed Rail. Yes, it is bold but so is everything else about California.

Electrified trains are part of the future. China already has 5000 miles of high speed rail and intends to double that. Spain has 1600 miles and is building more. More than a dozen other countries have their own successful high speed rail systems. Even Morocco is building one.

The first phase will get us from Madera to Bakersfield. Then we will take it through the Tehachapi Mountains to Palmdale, constructing 30 miles of tunnels and bridges. The first rail line through those mountains was built in 1874 and its top speed over the crest is still 24 miles an hour. Then we will build another 33 miles of tunnels and bridges before we get the train to its destination at Union Station in the heart of Los Angeles.

It has taken great perseverance to get us this far. I signed the original high speed rail Authority in 1982 – over 30 years ago. In 2013, we will finally break ground and start construction.

He even added some extemporaneous remarks, comparing the quest for California High-Speed Rail to “The Little Engine That Could.”

In 2014, his prepared speech (and his actual remarks) barely mentioned it. For good reason: the project is a boondoggle. (See www.CaliforniaHighSpeedRailScam.com.)

My January 21, 2014 www.UnionWatch.org article “Unions Virtually Alone in Love with California High-Speed Rail” list the dwindling number of supporters:

…who would still be eager to proceed with this project besides Governor Jerry Brown, the corporations seeking contracts, and a scattering of citizens committed to various leftist causes related to urban planning and environmentalism? Unions.

In a backroom deal, without any public deliberation or vote, the board of the California High-Speed Rail Authority negotiated and executed a Project Labor Agreement (called a “Community Benefit Agreement”) with the State Building and Construction Trades Council of California. This agreement gives unions a monopoly on construction trade work and certain construction-related professional services…

When the groundbreaking ceremony occurs for California High-Speed Rail, perhaps in an abandoned Madera County cornfield seized through eminent domain by the Authority, expect thousands of construction union workers to be bused in to block and neutralize any protesters. Governor Brown cannot suffer any more embarrassment over this boondoggle and debacle.

For reasons listed in “Unions Virtually Alone in Love with California High-Speed Rail,” there may never be a groundbreaking.

Proposed New Sacramento Kings Arena: Another California Infrastructure Project Burdened by Visions to Change the World

California can’t build a bullet train to transport people in two hours and forty minutes from San Francisco to Los Angeles. That’s too mundane. Instead, California High-Speed Rail is burdened with revitalizing Central Valley cities, employing the homeless, saving the planet from global warming, creating jobs, ending poverty, planting trees, transforming society, etc.

It’s not surprising that the California High-Speed Rail project is about to wither away after five years of visionary leftist nonsense. The project became too much for too many.

As the hyperbole rises to the absurd about the proposed new Sacramento Kings basketball arena, I’m predicting this “Entertainment and Sports Center” will suffer the same fate. See my December 16, 2013 article in www.FlashReport.org entitled Regional Sports and Entertainment Facilities in the Urban Core Attract Costly Political Meddling: Sacramento Kings as a Case Study.

 

Three Sacramento County Superior Court Rulings on California High-Speed Rail – Bond Validation Lawsuit and Prop 1A Lawsuit – November 25, 2013

California High-Speed Rail Court Decisions

November 25, 2013 California High Speed Rail Authority Bond Validation Lawsuit Ruling (original source http://www.saccourt.ca.gov/general/media/docs/tos-v-ca-high-speed-rail-authority-ruling-112513.pdf)

HIGH-SPEED RAIL AUTHORITY and HIGH-SPEED PASSENGER TRAIN FINANCE COMMITTEE, for the STATE OF CALIFORNIA, Plaintiffs, v. ALL PERSONS INTERESTED IN THE MATTER OF THE VALIDITY OF THE AUTHORIZATION AND ISSUANCE OF GENERAL OBLIGATION BONDS TO BE ISSUED PURSUANT TO THE SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT FOR
THE 21ST CENTURY AND CERTAIN PROCEEDING AND MATTER RELATED THERETO.

  • It was NOT proven to be “necessary and desirable” to authorize bond sales on 3/18/13 for California High-Speed Rail.
  • I’m referenced on pages 7-8 & page 18 (footnote 30).

August 16, 2013 Tos Fukuda Kings County v California High-Speed Rail Prop 1A Part 1 Ruling (original source http://www.saccourt.ca.gov/general/media/docs/tos-v-ca-high-speed-rail-authority-ruling.pdf)

JOHN TOS, AARON FUKUDA, COUNTY OF KINGS, Plaintiffs and Petitioners, v. CALIFORNIA HIGH SPEED RAIL AUTHORITY, et al., Defendants and Respondents.

  • California High-Speed Rail doesn’t need to rescind its Tutor-Perini contract for first segment construction (Merced to Fresno).
  • The 2012 appropriation of funds to California High-Speed Rail from Senate Bill 1029 is not invalidated.

November 25, 2013 Tos Fukuda Kings County v California High-Speed Rail Prop 1A Part 2 Ruling (original source http://www.saccourt.ca.gov/general/media/docs/tos-v-ca-high-speed-rail-authority-ruling2-112513.pdf)

JOHN TOS, AARON FUKUDA, COUNTY OF KINGS, Plaintiffs and Petitioners, v. CALIFORNIA HIGH SPEED RAIL AUTHORITY, et al., Defendants and Respondents.

  • California High-Speed Rail Authority has to rescind its approval of its non-compliant November 3, 2011 funding plan.

News Media Coverage

Judge Blocks Sale of California High-Speed Rail Bonds – Associated Press (in Sacramento Bee) – November 25, 2013

California High-Speed Rail Funding Overturned by Judge – FOX 11 (Los Angeles) – November 25, 2013

Judge Blocks Use of State Bond Money for California Bullet TrainLos Angeles Times – November 25, 2013

California High-Speed Rail Plans Stopped in TracksSan Francisco Chronicle – November 26, 2013

California’s High-Speed Rail Imperiled by Court RulingsSan Jose Mercury-News – November 25, 2013

Sacramento Judge Sides with Kings County Plaintiffs, Puts California High-Speed Rail Plan on the RopesHanford Sentinel – November 25, 2013

California High-Speed Rail Bond Sale Rejected by Judge – www.bloomberg.com – November 25, 2013

Judge Grants Partial Victory to Foes of California Bullet Train – KQED – November 25, 2013

California Bond Sale for High-Speed Rail Project Blocked by Judge – Reuters – November 26, 2013

Locals Participated in High-Speed Rail Court Case – Bakersfield Californian – November 26, 2013

Judge Blocks Sale of California High-Speed Rail Bonds – Capitol Public Radio – November 25, 2013

California High Speed Rail Bond Sales Halted and Funding Plan Invalidatedwww.nextcity.org – November 26, 2013

Judge Strikes Down High Speed Rail Bond, Causing More DelaysSilicon Valley Business Journal – November 26, 2013

Court Instructs California High-Speed Rail to Redo Funding Plan; Refuses to Validate State Bonds – www.Examiner.com – November 26, 2013

Judge Deals Setback to California High-Speed Rail ProjectWall Street Journal – November 26, 2013

Applying a Brake to High-Speed PlansThe Economist – November 26, 2013

California Judge Cuts Off State Funding for High-Speed Train Venture – FOX News Channel – November 26, 2013

Judge’s Rulings Favor Opponents of Rail Project – www.agalert.com – November 26, 2013

LaMalfa: High-Speed Rail ‘Dead in the Water’Redding Record-Searchlight – November 26, 2013

California Bullet Train Might Be Breathing Its LastMother Jones – November 25, 2013

Will High-Speed Rail Keep Rolling Ahead? – columnist Dan Walters (video) – Sacramento Bee – November 26, 2013

Hurdle for High-Speed Rail: Where is the Money? – Associated Press (in Sacramento Bee) – November 26, 2013

Hurdle For California High-Speed Rail: Where Is The Money? – KPIX Channel 5 (San Francisco), video – November 26, 2013

Judge Issues Setback to California’s High-Speed Rail Plan – KQED Forum, radio interview – November 27, 2013

  • Dan Richard, chairman, California High-Speed Rail Authority
  • Juliet Williams, political reporter for the Associated Press
  • Quentin Kopp, former chairman of California State Senate transportation committee

Bullet Train Snag Could Affect Transbay Terminal – columnists Matier & Ross (in San Francisco Chronicle) – November 27, 2013

High-Speed Rail Ruling Threatens To Derail Future Of Caltrain – KPIX Channel 5 (San Francisco), video – November 27, 2013

California State Senator Mark DeSaulnier Talks About The Fate Of High-Speed Rail – KPIX Channel 5 (San Francisco), video – December 1, 2013

Editorials

Bullet-Train Fiasco: Gov. Brown, Heed the JudgeUT San Diego – November 25, 2013

Time to End the California High-Speed Rail Fraud – Bay Area News Group (Contra Costa Times, Oakand Tribune, etc.) – November 26, 2013

Hit the Brakes on California’s High-Speed Rail FraudLos Angeles Daily News – November 26, 2013

Pump the Brakes on Bullet TrainRiverside Press-Enterprise – November 26, 2013

Judge Detours Plans for Bullet TrainOrange County Register – November 26, 2013

Bullet Train Must Deliver on Its Pledge to VotersVentura County Star – November 26, 2013

High-Speed Rail Proceeds in Fits and StartsSacramento Bee – November 27, 2013

Bumps in the Path of High-Speed RailSan Francisco Chronicle – December 1, 2013

Commentary

California Judge Sends High-Speed Rail Plan Careening Backward Into the Station – Reason Foundation – November 25, 2013

Rube Goldberg Legal System Derails California Bullet Train – The American Interest – November 26, 2013

End Game on Bullet Train: No $, No Project – and No Prospects for $ – CalWatchdog – November 26, 2013

Court Rules Against Bullet Train Authority – Howard Jarvis Taxpayers Association (in www.foxandhoundsdaily.com) – November 26, 2013

Obama’s Bullet Train Dream Just Derailed in California – American Enterprise Institute – November 26, 2013

Getting to the Bottom of it: Backroom Administrative/Executive Deliberation Leading to Project Labor Agreement on California High-Speed Rail

UPDATE: I emailed this message to the California High-Speed Rail Authority at 4:51 p.m. on Friday, December 20, 2013:

Today is December 20, 2013, the date cited in the last correspondence from the California High-Speed Rail Authority.

“Under Government Code §6253(a), the Authority invoked a 14 day extension in order to further research your request and make a determination. A determination letter would be sent to you no later than November 18, 2013. The Authority will provide all responsive documents to you by December 20, 2013.”

http://laborissuessolutions.com/wp-content/uploads/2013/11/2013-11-18-CaHSRA-letter-to-Dayton-on-Public-Records-Request.pdf

Any news on progress to fulfill the October 24, 2013 request?

At 5:58 p.m., the California High-Speed Rail Authority emailed me this letter notifying me that “The amount of electronic records that are responsive to your request are too large to send via email. A CD-ROM with electronic records will be sent via U.S. Mail to your attention no later than December 20, 2013.”

December 20, 2013 California High-Speed Rail Authority Letter to Kevin Dayton on Public Records Request

Then, at 6:14 p.m., the California High-Speed Rail Authority emailed me this batch of letters:

Associated Builders and Contractors of California – State Building and Construction Trades Council of California – California High-Speed Rail Authority 2013 letter exchange on Project Labor Agreement

UPDATE: In a November 18, 2013 letter, the California High-Speed Rail Authority informed me that it will provide me with the requested public records by December 20, 2013.

UPDATE: In a November 4, 2013 letter, the California High-Speed Rail Authority informed me that it is taking an additional 14 days (as allowed by law) to provide me with the requested public records.


On April 29, 2013, I posted the results of my request to the Fresno County Workforce Investment Board for public records related to the development of the Project Labor Agreement with the State Building and Construction Trades Council of California for construction of the California High-Speed Rail system. (See Newly Obtained Documents Reveal Which Elected Official Was the Catalyst for the Project Labor Agreement on California High-Speed Rail: Fresno Mayor Ashley Swearengin.)

I also listed seven questions that remain to be answered about how this costly union construction monopoly was implemented. It was done without any public discussion or vote by the board of the California High-Speed Rail Authority, obviously because public scrutiny and discussion would have further damaged its reputation in California and even in Washington, D.C.

Today I submitted another request for public records related to the Project Labor Agreement, this time directly to the California High-Speed Rail Authority. I expect these records will answer those seven questions and give the public a complete picture of the backroom wheeling and dealing.


From: Kevin Dayton [mailto:kdayton@laborissuessolutions.com]
Sent: Thursday, October 24, 2013 10:45 AM
To: ‘records@hsr.ca.gov’; ‘xxxxx’
Subject: Public Records Request to California High-Speed Rail Authority: Community Benefits Agreement/Project Labor Agreement

October 24, 2013

Lisa Marie Alley
Assistant Deputy Director of Communications
California High-Speed Rail Authority
770 L Street, Suite 800
Sacramento, CA 95814

Re: Public Records Request – Community Benefits Agreement/Project Labor Agreement

Dear Ms. Alley:

Under the authority of the California Public Records Act, I am requesting the following records to determine the following:

The administrative/executive branch deliberative process within the California High-Speed Rail Authority that led to the execution of the “Community Benefits Agreement” (aka Project Labor Agreement) as signed by Robbie Hunter, President of the State Building and Construction Trades Council of California, on August 7, 2013 and by Jeff Morales, Chief Executive Officer of the California High-Speed Rail Authority, on August 13, 2013. Here’s a link to that Project Labor Agreement: Project Labor Agreement with Unions for California High-Speed Rail.

“Public records” include any writing containing information relating to the conduct of the public’s business prepared, owned, used or retained by the California High-Speed Rail Authority regardless of physical form or characteristics. “Writing” means handwriting, typewriting, printing, photostating, photocopying, photographing, transmitting by electronic mail or facsimile, and every other means of recording upon any tangible thing, any form of communication or representation, including letters, words, pictures, sounds or symbols or any combination thereof, and any record thereby created, regardless of the manner in which the record has been stored.

“Public records” shall include writing from private email addresses used by the Board and staff of the California High-Speed Rail Authority for public business. For example, if a staff member sends electronic mail through a Google mail account to schedule a meeting with Robbie Hunter, that email is a public record.

Please provide the following public records – in electronic form if possible – from the California High-Speed Rail Authority:

  • All records dated after January 1, 2012 concerning consideration, rejection, and approval from any federal or state agency for a Community Benefits Agreement/Project Labor Agreement and/or “Targeted Hiring Agreement” based on a similar agreement adopted at the Los Angeles County Metropolitan Transportation Authority.
  • All records dated after January 1, 2012 concerning evaluation or deliberation of the conditions, benefits, challenges, and negative impact of a Community Benefits Agreement/Project Labor Agreement.
  • All records dated after January 1, 2012 referencing the Community Benefits Agreement/Project Labor Agreement in communications from, to, or citing the following individuals:

a) Robbie Hunter (Current President, State Building and Construction Trades Council of California)

b) Bob Balgenorth (Past President, State Building and Construction Trades Council of California and past board member, California High-Speed Rail Authority)

c) Ashley Swearingen (Mayor of Fresno)

d) Tom Richards (Chair of Fresno Regional Workforce Investment Board and current board member, California High-Speed Rail Authority.)

e) Lee Ann Eager (Economic Development Corporation serving Fresno County)

f) Chuck Riojas (International Brotherhood of Electrical Workers – IBEW)

g) Blake Konczal (Executive Director, Fresno Regional Workforce Investment Board, and Fresno Works Consortium)

h) Ken Price (counsel for Fresno Regional Workforce Investment Board)

i) Michael Bernick (Applied Development Economics)

j) Robert Padilla (Small Business Advocate, California High-Speed Rail Authority)

  • All records dated after November 1, 2012 referencing the Community Benefits Agreement/Project Labor Agreement in communications from, to, or citing the following individuals:

a) Eric Christen (Coalition for Fair Employment in Construction)

b) Nicole Goehring (Associated Builders and Contractors, Northern California Chapter)

c) Kevin Dayton, Labor Issues Solutions, LLC

  • Any other records related to the Community Benefits Agreement/Project Labor Agreement.

Note: the California High-Speed Rail Authority does not need to provide board meeting agendas, minutes, board meeting transcripts, or staff reports for meetings already provided to the public as posted on the California High-Speed Rail Authority web site in association with board meetings. It does not need to provide the Addendum 8 version of the Project Labor Agreement (Addendum 8 Project Labor Agreement for Initial Construction Segment) or the revised Project Labor Agreement linked above (Project Labor Agreement with Unions for California High-Speed Rail).

Upon receiving this request for a copy of records, please, within 10 days, determine whether the request, in whole or in part, seeks copies of disclosable public records in the possession of the California High-Speed Rail Authority and promptly notify me of the determination and the reasons therefor.

In unusual circumstances, the time limit may be extended by written notice, setting forth the reasons for the extension and the date on which a determination is expected to be dispatched. No notice shall specify a date that would result in an extension for more than 14 days, and the notice shall provide the estimated date and time when the records will be made available.

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