HSR Audit Approved – “Authority Will Now Answer To The Auditor”

SACRAMENTO (KMJ) — A bipartisan request to open the books on California’s High Speed Rail Authority has been approved by the Joint Legislative Audit Committee.

The argument to examine the numbers was made by Republican Assemblyman Jim Patterson, Democrat Assemblyman Joaquin Arambula, and Democrat State Senator Jim Beall.

“I represent Silicon Valley. Silicon Valley is watching this project. They would like to locate high-tech facilities in the Central Valley,” revealed Senator Beall.

“They see a huge asset, and I hate to say this being a San Jose State student, in Fresno State. It has a wonderful school of engineering and business department and I know we can have a Bulldog-Spartan alliance with this project.”

Senator Beall said having a high speed rail connection through the state could bring immense economic growth.

“It doesn’t exist unless there’s an efficient transportation system.”

The bipartisan nature of the request was referenced multiple times.

“It’s important for us as Californians to get to the truth and this audit will do just that,” said Assemblyman Arambula.

“I hope, as we look at the audit, one of the factors we look at is the fact that time is money and that the delays and litigations themselves is costing the Authority.”

Following Tuesday’s vote, Assemblyman Jim Patterson reiterated that the effort is no longer divided by party lines.

“Those who support high-speed rail should be as alarmed, if not more so, as those opposed to the project. Even project managers have admitted to serious funding issues that have made a true north to south high-speed train impossible to complete as approved by voters.

“The High Speed Rail Authority will now answer to the auditor and we will all finally get the non-partisan, independent reality check we’ve been asking for.”

The result comes after a request was sent to the Chair of the Joint Legislative Audit Committee earlier this month, signed by Senator Beall and Assemblyman Patterson (click here to read more).

In a statement, the High Speed Rail Authority says it is looking forward to working with the legislature and auditor.

“We have cooperated with multiple state, federal, and internal audits and reviews because building an infrastructure project of this magnitude requires transparency and routine assessments.”

The California State Auditor estimates the audit will take between six to nine months and cost approximately $350,000.

The audit is set to include, but is not limited to, the following:

  • Review and evaluate the laws, rules, and regulations significant to the audit objectives.
  • Review and assess the Authority’s policies, procedures, and processes for managing contracts and containing costs for the project, including its processes for tracking, reviewing, and paying contractor invoices.
  • Evaluate the Authority’s process for reviewing and approving design-build contract change orders.
  • To the extent possible, review and evaluate the Authority’s efforts to determine the economic impact the project has had on communities in those areas where construction is under way.
  • Determine the extent to which the Authority contracts with small and disadvantaged businesses.
  • Review the Authority’s sustainability policy and assess its compliance with the policy. Assess efforts to evaluate the economic and environmental outcomes of its policy.
  • Determine whether there are opportunities for the Authority to expedite the project and reduce costs through cooperation with other transportation entities, such as other transit or rail lines or through capturing additional value through construction of project facilities.
  • Review and assess any other issues that are significant to the audit.

Hear the report from KMJ’s Dominic McAndrew as it aired: