BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
455 (Lowenthal)
Hearing Date: 05/26/2009 Amended: 04/16/2009
Consultant: Mark McKenzie Policy Vote: T&H 10-1
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BILL SUMMARY: SB 455 would make the following changes relative
to the High Speed Rail Authority (HSRA):
Require Senate confirmation of the five members of the HSRA
board who are appointed by the Governor.
Exempt HSRA from various statutory provisions related to the
acquisition and disposal of property, rights-of way, and
easements that otherwise require approval of the Department of
General Services, the State Public Works Board, or the
Department of Finance. These provisions provide the HSRA with
similar statutory authority granted to Caltrans and several
other state agencies in property matters.
Require the preparation of a project schedule that includes a
detailed assessment of project delivery milestones and
identification of issues that may affect the schedule.
Require the schedule to be published and presented to the HSRA
board each calendar quarter, beginning March 31, 2010. The
report would include a discussion of project status, including
any delays and their impact on meeting project delivery.
Copies of the report would be submitted to the Legislature and
Legislative Analyst.
Require the HSRA, beginning with the first board meeting after
March 31, 2010, to approve a quarterly report on the status of
any contracts with firms providing professional services,
including any change orders, modifications in the schedule,
and changes in budget or contracted amount for those
contracts.
Require the HSRA to approve any amendments to contracts at a
scheduled board meeting. The contract amendment would also
include an explanation for its necessity and consequences on
overall project schedule and budget.
Require capital outlay projects undertaken by the HSRA to be
consistent with one or more of the following criteria: (1)
provide enhanced railroad access to stations and terminals;
(2) provide specified improvements to existing commuter and
intercity passenger train services; (3) provide for
improvement of connections from the San Joaquin Valley to
either southern California or the Bay Area; and (4) require
the projects to be capable of conversion or use by high-speed
passenger train service.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Property management likely no net costs (see staff
comments)Bond*
Quarterly reports $50 $100 $100 Bond*
Contract amendments minor costs for board approval of
changesBond*
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* High-Speed Passenger Train Bond Fund
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STAFF COMMENTS:
Page 2
SB 455 (Lowenthal)
Following the passage of Proposition 1A (the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century) in
November of last year, the HSRA will be transitioning from a
small study and planning organization to a multi-billion dollar
engineering and construction entity. This bill provides the
HSRA with authority to facilitate the development of the
high-speed rail service, establishes legislative priorities for
high-speed rail investments, and provides a structure intended
to ensure accountability in the performance of its functions and
activities.
SB 455 would increase the administrative duties of the HSRA by
requiring regular reporting on the project management and
schedule status of the high-speed rail project. These
accountability provisions are similar to the requirements
imposed by the Legislature on the Bay Bridge seismic retrofit
project due to past cost escalations and schedule delays. SB 66
(Torlakson), Chapter 375 of 2005, requires quarterly reports to
the Legislature on project delivery status, including changes to
the scope, schedule, and budget of the project. These measures
have been successful in identifying and addressing potential
scheduling and budgetary issues. The additional accountability
provisions in this bill, including the quarterly reporting,
status of any contracts, and board approval of contract
amendments, would require the addition of one additional staff
position at the HSRA at a cost of approximately $100,000
annually.
SB 455 would provide the HSRA with certain authority related to
the acquisition and disposal of property, rights-of way, and
easements. Under current law, these activities generally
require the involvement and approval of the Department of
General Services (DGS), the State Public Works Board (SPWB), or
the Department of Finance in order to take certain actions
regarding property or the contracting of professional and
construction services. Caltrans, the University of California,
the Department of Water Resources and other large agencies that
manage their own larger scale construction projects are exempt
from this body of law and follow other procedures. This bill
would essentially provide the HSRA with the same exemptions that
are provided to these other agencies.
Staff notes that HSRA would need to hire or contract for
additional legal and other staff to the extent that activities
related to the acquisition, management, and disposal of property
would be handled in-house rather than going through DGS or SPWD.
There would likely be corresponding savings, however, to the
extent that other state agencies would be relieved of these
responsibilities. Staff estimates the provisions related to
property management would result in no net state costs.