WEBVTT
00:22:07.392 --> 00:22:07.893
ALL RIGHT LIKE TO CALL THIS
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MEETING TO ORDER.
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GOOD MORNING EVERYONE WELCOME TO
00:22:10.062 --> 00:22:12.431
THE OVERSIGHT HEARING.
00:22:12.497 --> 00:22:13.031
A JOINT HEARING OF THE LOOK
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JOINT LEGISLATIVE AUDIT
00:22:14.433 --> 00:22:15.333
COMMITTEE.
00:22:15.400 --> 00:22:17.436
AND THE ASSEMBLY COMMITTEE ON
00:22:17.502 --> 00:22:18.670
TRANSPORTATION.
00:22:18.737 --> 00:22:20.005
THIS MORNING WE'LL BE DISCUSSING
00:22:20.072 --> 00:22:22.140
THE FINDINGS AND RECOMMENDATIONS
00:22:22.207 --> 00:22:24.776
OF THE STATE AUDITOR AND HER
00:22:24.843 --> 00:22:25.944
RECENT OUR REPORT.
00:22:26.011 --> 00:22:27.446
RELEASED ON THE CALIFORNIA HIGH
00:22:27.512 --> 00:22:29.981
SPEED RAIL AUTHORITY.
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WANT TO THANK SENATOR BELL.
00:22:33.018 --> 00:22:34.820
AND ASSEMBLY MEMBERS ARAMBULA
00:22:34.886 --> 00:22:37.489
AND PATTERSON FOUR REQUESTING
00:22:37.556 --> 00:22:38.924
THIS AUDIT ON THIS IMPORTANT
00:22:38.990 --> 00:22:40.826
SUBJECT.
00:22:40.892 --> 00:22:42.027
AND I ALSO WANT TO THANK
00:22:42.094 --> 00:22:43.495
ASSEMBLYMEMBER FRAZIER.
00:22:43.562 --> 00:22:45.297
THE CHAIR OF THE ASSEMBLY
00:22:45.363 --> 00:22:48.200
COMMITTEE ON TRANSPORTATION. FOR
00:22:48.266 --> 00:22:52.070
ARE REQUESTING TODAY'S HEARING.
00:22:52.137 --> 00:22:53.538
TODAY WE'RE GONNA TAKE A LONG
00:22:53.605 --> 00:22:54.673
HARD LOOK AT THE HIGH SPEED RAIL
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PROJECT.
00:22:57.175 --> 00:22:58.410
I ALONG WITH THE MAJORITY OF
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CALIFORNIA VOTERS.
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INITIALLY SUPPORTED THE DREAM.
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OF OUR GREAT STATE BUILDING THE
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NATION'S FIRST BILL BULLET TRAIN.
00:23:06.251 --> 00:23:08.653
WE'LL BE PASSED PROPOSITION ONE
00:23:08.720 --> 00:23:11.056
EIGHT AND TWO THOUSAND EIGHT
00:23:11.123 --> 00:23:12.824
HOWEVER MANY CALIFORNIANS HAVE
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BECOME.
00:23:13.892 --> 00:23:16.328
INCREASINGLY DISILLUSIONED.
00:23:16.394 --> 00:23:17.496
AFTER THE DREAM OF THE
00:23:17.562 --> 00:23:18.964
CALIFORNIA BALL THE TRAIN.
00:23:19.030 --> 00:23:21.533
HAS BECOME A NIGHTMARE OF COST
00:23:21.600 --> 00:23:24.936
OVERRUNS AND PROJECT DELAYS.
00:23:25.003 --> 00:23:26.538
TODAY THE LEGISLATURE WILL BEGIN
00:23:26.605 --> 00:23:28.740
ITS COMMITMENT TO INCREASE
00:23:28.807 --> 00:23:29.808
OVERSIGHT OVER THE HIGH SPEED
00:23:29.875 --> 00:23:31.076
RAIL PROJECT.
00:23:31.143 --> 00:23:32.978
AND ITS FUTURE.
00:23:33.044 --> 00:23:34.946
SO THAT WE NOT ONLY TO CONTINUE
00:23:35.013 --> 00:23:36.915
TO INVEST RESPONSIBLY.
00:23:36.982 --> 00:23:37.849
AND TRANSPORTATION
00:23:37.916 --> 00:23:41.920
INFRASTRUCTURE AND CREATE JOBS.
00:23:41.987 --> 00:23:43.588
BUT ALSO SO THAT WE IN SURE THAT
00:23:43.655 --> 00:23:44.589
TAXPAYER DOLLARS ARE BEING WELL
00:23:44.656 --> 00:23:47.058
SPENT.
00:23:47.125 --> 00:23:48.393
TODAY THIS COMMITTEE WILL BE
00:23:48.460 --> 00:23:49.194
SEEKING ANSWERS TO MANY
00:23:49.261 --> 00:23:53.231
QUESTIONS. FOR MOST OF MY MIND
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WILL BE WHAT STEPS.
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WELL THE HIGH SPEED RAIL
00:23:56.134 --> 00:23:59.838
AUTHORITY BE TAKING. TO REGAIN.
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TRUST AND CONFIDENCE IN THERE
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ABILITY TO CARRY OUT THIS
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PROJECT.
00:24:05.644 --> 00:24:06.178
AT THIS TIME I'D LIKE TO TURN
00:24:06.244 --> 00:24:08.980
OVER. TWO THE CHAIR OF THE
00:24:09.047 --> 00:24:09.447
ASSEMBLY COMMITTEE ON
00:24:09.514 --> 00:24:11.116
TRANSPORTATION --
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MISTER FRAZIER.
00:24:13.985 --> 00:24:16.688
THANK YOU MISTER CHAIRMAN.
00:24:16.755 --> 00:24:18.323
WE'RE HERE TODAY TO REVIEW THE
00:24:18.390 --> 00:24:19.391
AUDITOR'S FINDINGS AND HOW THE
00:24:19.457 --> 00:24:21.092
STATE'S HIGH SPEED RAIL PROGRAM
00:24:21.159 --> 00:24:22.260
IS BEING DELIVERED BY THE
00:24:22.327 --> 00:24:23.161
CALIFORNIA HIGH SPEED RAIL
00:24:23.228 --> 00:24:25.564
AUTHORITY [inaudible]
00:24:25.630 --> 00:24:37.342
IMPACT.
00:24:37.409 --> 00:24:38.376
THERE IS.
00:24:38.443 --> 00:24:39.177
ARE.
00:24:39.244 --> 00:24:41.012
IN PAST HEARINGS I RECOGNIZE THE
00:24:41.079 --> 00:24:42.147
DIFFICULT TASK THE AUTHORITY HAS
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HAD IN BUILDING THE HIGH SPEED
00:24:43.849 --> 00:24:45.050
RAIL SYSTEM.
00:24:45.116 --> 00:24:45.851
I READILY ADMIT I'VE BEEN
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SKEPTICAL ABOUT THE LONG TERM
00:24:46.751 --> 00:24:47.586
VIABILITY OF THIS PROJECT
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HOWEVER HAVE ALWAYS BEEN WILLING
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TO WORK WITH THE AUTHORITY IN
00:24:49.621 --> 00:24:50.889
GETTING THIS PROJECT.
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MOVING ALONG HENCE THE TOURS
00:24:53.024 --> 00:24:53.725
THAT I'VE TAKEN WITH THE
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AUTHORITY.
00:24:54.559 --> 00:24:57.429
AND CONSTRUCTION STAFF. TO SEE
00:24:57.495 --> 00:24:59.130
WHERE THEY'RE AT AFTER HIRTY
00:24:59.197 --> 00:24:59.731
FIVE YEARS IN THE CONSTRUCTION
00:24:59.798 --> 00:25:00.799
INDUSTRY.
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IT'S NICE TO BE ABLE TO
00:25:02.100 --> 00:25:03.335
COLLABORATE WITH THE FOLKS THERE
00:25:03.401 --> 00:25:04.603
AND UNDERSTAND SOME OF THE
00:25:04.669 --> 00:25:07.372
DIFFICULTIES ARE HAVING BUT ALSO.
00:25:07.439 --> 00:25:09.307
NO THAT WITH THEIR NOT WHERE
00:25:09.374 --> 00:25:11.176
THEY THOUGHT THEY WOULD BE.
00:25:11.243 --> 00:25:12.010
UNFORTUNATELY HE'S LOT OF
00:25:12.077 --> 00:25:13.645
RESULTS ARE MAKING ME QUESTION
00:25:13.712 --> 00:25:14.613
MY FAITH IN.
00:25:14.679 --> 00:25:16.848
THAT MY FAITH HAS BEEN VERY MUCH
00:25:16.915 --> 00:25:19.284
BEEN MISPLACED.
00:25:19.351 --> 00:25:20.852
THE SCOPING COST TO THE
00:25:20.919 --> 00:25:22.487
TAXPAYERS IS ONGOING SYSTEMIC
00:25:22.554 --> 00:25:24.122
PROBLEMS WITH BASIC CONSTRUCTION
00:25:24.189 --> 00:25:26.191
MANAGEMENT TASKS LIKE CONTRACT
00:25:26.258 --> 00:25:27.525
OVERSIGHT MEDICAL PLANNING.
00:25:27.592 --> 00:25:29.861
ARE STAGGERING.
00:25:29.928 --> 00:25:31.429
BUT WE STILL HAVE THE CONTINUAL
00:25:31.496 --> 00:25:33.131
UNANSWERED QUESTION HIGHLIGHTED
00:25:33.198 --> 00:25:33.965
BY THE AUDITOR.
00:25:34.032 --> 00:25:35.600
ABOUT THE LARGE FUNDING GAP TO
00:25:35.667 --> 00:25:36.635
GET HIGH SPEED TRAINS UP AND
00:25:36.701 --> 00:25:38.403
RUNNING AND I GOTTA TELL YOU
00:25:38.470 --> 00:25:40.705
EVERY TIME THAT I'VE HAD.
00:25:40.772 --> 00:25:42.807
A HEARING THAT INCLUDED THE
00:25:42.874 --> 00:25:43.775
STATE ARE THE PEOPLE OF
00:25:43.842 --> 00:25:44.943
CALIFORNIA NEED TO THANK THIS
00:25:45.010 --> 00:25:46.811
ORDER.
00:25:46.878 --> 00:25:48.947
THIS IS BEEN A BLESSING TO THE
00:25:49.014 --> 00:25:52.217
PEOPLE OF BEING ABLE --
00:25:52.284 --> 00:25:57.889
TO GET THIS KIND OF TRANSPARENCY.
00:25:57.956 --> 00:25:59.791
THERE'S THERE'S SET DATE THE
00:25:59.858 --> 00:26:00.659
SUIT SECURE FUNDING FOR PROSTATE
00:26:00.725 --> 00:26:01.493
TWELVE POINT SEVEN BILLION.
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BUT TWENTY NINE POINT FIVE
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BILLION IS NEEDED JUST TO FINISH
00:26:03.662 --> 00:26:04.996
THE INITIAL OPERATING PROJECT.
00:26:05.063 --> 00:26:06.598
THERE'S A GAP THERE FOLKS.
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WHERE IS IT COMING FROM?
00:26:10.969 --> 00:26:12.003
DO COOLEY PHASE ONE FROM SAN
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FRANCISCO TO LOS ANGELES WILL
00:26:13.071 --> 00:26:14.372
COST APPROXIMATELY SEVENTY SEVEN
00:26:14.439 --> 00:26:14.973
BILLION DOLLARS.
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LEAVING A CURRENT FUNDING GAP OF
00:26:16.074 --> 00:26:19.711
OVER SIXTY FOUR BILLION DOLLARS.
00:26:19.778 --> 00:26:21.212
BY FAR THE COSTLIEST DECISION TO
00:26:21.279 --> 00:26:22.681
THE CALIFORNIA TAXPAYER WAS A
00:26:22.747 --> 00:26:24.716
RUSH TO BEGIN CONSTRUCTION.
00:26:24.783 --> 00:26:26.051
GROUND WAS BROKEN BEFORE THE
00:26:26.117 --> 00:26:27.485
AUTHORITY EVEN KNEW OR HAD
00:26:27.552 --> 00:26:29.354
POSITION OF WHAT PARCELS OF LAND
00:26:29.421 --> 00:26:31.222
IT NEEDED AND ONE ENTITIES IT
00:26:31.289 --> 00:26:32.791
NEEDED TO NEGOTIATE WITH IN
00:26:32.857 --> 00:26:33.258
ORDER TO BUILD THIS
00:26:33.325 --> 00:26:34.192
INFRASTRUCTURE.
00:26:34.259 --> 00:26:35.460
AND I'VE LIKE IN THIS TO
00:26:35.527 --> 00:26:37.529
BUILDING THE AIRPLANE ON THE
00:26:37.595 --> 00:26:38.463
RUNWAY [inaudible]
00:26:38.530 --> 00:26:40.699
MANY TIMES.
00:26:40.765 --> 00:26:41.700
THE AUTHORITY IS SAID IT WAS
00:26:41.766 --> 00:26:43.101
NECESSARY TO BEGIN CONSTRUCTION
00:26:43.168 --> 00:26:44.102
QUICKLY IN ORDER TO TAKE
00:26:44.169 --> 00:26:45.270
ADVANTAGE OF THE THREE POINT
00:26:45.337 --> 00:26:47.238
BILLION DOLLARS OF FEDERAL FUNDS.
00:26:47.305 --> 00:26:49.074
UNFORTUNATELY.
00:26:49.140 --> 00:26:50.342
THE HAZE HAS RESULTED IN A
00:26:50.408 --> 00:26:52.077
DOMINO EFFECT OF COST OVERRUNS
00:26:52.143 --> 00:26:53.812
ESTIMATED TWO POINT TWO BILLION
00:26:53.878 --> 00:26:55.880
DOLLARS SO FAR.
00:26:55.947 --> 00:26:57.582
IT IS ENTIRELY POSSIBLE THAT ANY
00:26:57.649 --> 00:27:00.218
GAINS CALIFORNIA RECEIVE BY
00:27:00.285 --> 00:27:01.252
STARTING EARLY.
00:27:01.319 --> 00:27:02.687
WILL BE ENTIRELY WIPED OUT.
00:27:02.754 --> 00:27:04.222
WASTE OF ALMOST THREE BILLION
00:27:04.289 --> 00:27:06.024
DOLLARS.
00:27:06.091 --> 00:27:07.592
I AM ALSO DISAPPOINTED THAT ONCE
00:27:07.659 --> 00:27:08.893
AGAIN CONTRACT MANAGEMENT HAS
00:27:08.960 --> 00:27:09.928
BEEN FLAG AS AN ISSUE AT THE
00:27:09.995 --> 00:27:11.863
AUTHORITY.
00:27:11.930 --> 00:27:13.531
DAUGHTER POINTED UP CONTACT
00:27:13.598 --> 00:27:16.868
OVERSIGHT DEFICIENCIES A TOOTH
00:27:16.935 --> 00:27:17.802
TWENTY TWELVE WHAT IT WILL LOOK
00:27:17.869 --> 00:27:19.371
AND ACT PASSED THE AUDITOR IF
00:27:19.437 --> 00:27:23.141
THIS IS THIS A RECURRING THEME.
00:27:23.208 --> 00:27:24.075
THE AUTHORS OF THE IF
00:27:24.142 --> 00:27:24.743
AUTHORITIES OWN INTERNAL AUDITS
00:27:24.809 --> 00:27:26.311
IN TWENTY FIFTEEN TWENTY SIXTEEN
00:27:26.378 --> 00:27:27.278
ALSO POINT OUT SHORTCOMINGS IN
00:27:27.345 --> 00:27:29.147
CONTRACT MANAGEMENT.
00:27:29.214 --> 00:27:30.215
AND WE STILL FIND OURSELVES
00:27:30.281 --> 00:27:31.416
TODAY WITH ONGOING OVERSIGHT
00:27:31.483 --> 00:27:34.119
ISSUES.
00:27:34.185 --> 00:27:35.186
MULTIPLE TIMES THE AUTHORITY IS
00:27:35.253 --> 00:27:36.588
SEATED THAT THESE ISSUES THAT
00:27:36.654 --> 00:27:38.590
WERE BEING ADDRESSED.
00:27:38.656 --> 00:27:39.691
IT IS APPARENT THAT THE
00:27:39.758 --> 00:27:40.658
AUTHORITY HAS BEEN LESS THAN
00:27:40.725 --> 00:27:42.093
FORTHCOMING.
00:27:42.160 --> 00:27:45.163
WITH THIS PROCESS.
00:27:45.230 --> 00:27:47.665
I CONTINUE TO WORK ON INCREASING.
00:27:47.732 --> 00:27:49.300
ACCOUNTABILITY IN LEGISLATIVE OR
00:27:49.367 --> 00:27:50.769
THE OVERSIGHT OF THE AUTHORITY.
00:27:50.835 --> 00:27:52.570
INCLUDING THE BOARD OF DIRECTORS
00:27:52.637 --> 00:27:54.672
AFTER HAVING MY MOST RECENT
00:27:54.739 --> 00:27:56.007
ATTEMPT VETOED.
00:27:56.074 --> 00:27:57.308
I WILL BE BACK NEXT YEAR WORKING
00:27:57.375 --> 00:27:58.743
WITH MY COLLEAGUES IN BOTH THE
00:27:58.810 --> 00:28:00.945
SENATE AND ASSEMBLY TO PUSH FOR
00:28:01.012 --> 00:28:02.013
INCREASED OVERSIGHT AND OPENNESS.
00:28:02.080 --> 00:28:04.616
AT THIS AUTHORITY.
00:28:04.682 --> 00:28:06.084
I LOOK FOR TODAY'S HEARING IN
00:28:06.151 --> 00:28:08.453
TODAY'S TESTIMONY.
00:28:08.520 --> 00:28:09.721
AND I WANT TO THANK YOU SO MUCH
00:28:09.788 --> 00:28:12.357
OF CHAIRMAN MURATSUCHI FOR DOING
00:28:12.424 --> 00:28:13.658
THIS HEARING.
00:28:13.725 --> 00:28:15.260
THANK YOU THANK YOU VERY MUCH
00:28:15.326 --> 00:28:16.828
MISTER CHAIRMAN AND ACTED LIKE
00:28:16.895 --> 00:28:18.963
TO NOW TURN IT OVER --
00:28:19.030 --> 00:28:21.499
TO INVITE --
00:28:21.566 --> 00:28:21.966
THE SATYR FREIGHT --
00:28:22.033 --> 00:28:22.300
SUMMER BELL.
00:28:22.367 --> 00:28:22.834
THE CHAIR OF THE SENATE
00:28:22.901 --> 00:28:24.202
TRANSPORTATION COMMITTEE AS WELL
00:28:24.269 --> 00:28:26.404
AS WHEN AT THE REQUEST OF THIS
00:28:26.471 --> 00:28:30.108
ON MY STATEMENT WILL BE VERY
00:28:30.175 --> 00:28:31.843
BRIEF -- THE
00:28:31.910 --> 00:28:33.344
AUDIT -- IS
00:28:33.411 --> 00:28:36.915
HELPFUL AND REINFORCING
00:28:36.981 --> 00:28:53.465
PREVIOUSLY IDENTIFIED ISSUES
00:28:55.066 --> 00:28:55.133
.
00:28:55.133 --> 00:29:11.182
THAT
00:29:12.684 --> 00:29:14.719
in two issues highlighted in
00:29:14.786 --> 00:29:17.021
that report so the auditor's
00:29:17.088 --> 00:29:18.256
findings indicate that these
00:29:18.323 --> 00:29:20.125
issues continue to be on going
00:29:20.625 --> 00:29:22.627
and -- we want some answers from
00:29:22.694 --> 00:29:24.329
our high speed rail authority
00:29:25.263 --> 00:29:26.731
the the legislature's along
00:29:26.798 --> 00:29:28.533
with the current and new in
00:29:28.600 --> 00:29:30.135
ministration need to work
00:29:30.201 --> 00:29:32.470
in partner Sir partnership
00:29:32.904 --> 00:29:34.606
to determine what's next for
00:29:34.672 --> 00:29:36.040
the high speed rail authority
00:29:36.774 --> 00:29:38.610
this year I offered -- the
00:29:38.676 --> 00:29:41.546
bill SB eleven seventy two
00:29:41.913 --> 00:29:43.481
that were removed many of the
00:29:43.548 --> 00:29:45.216
duplicate measures there because
00:29:45.283 --> 00:29:47.118
the latest in the authorities
00:29:47.185 --> 00:29:49.621
property acquisition process
00:29:50.054 --> 00:29:51.089
the bill was signed into law
00:29:51.156 --> 00:29:52.190
by governor brown and will
00:29:52.257 --> 00:29:53.725
say the state time and money
00:29:54.425 --> 00:29:56.094
but this is not -- the only
00:29:56.161 --> 00:29:57.695
thing we need to do is be
00:29:57.762 --> 00:29:59.998
eleven seventy two is just
00:30:00.064 --> 00:30:01.699
the start this coming March my
00:30:01.766 --> 00:30:02.634
committee will be holding an
00:30:02.700 --> 00:30:04.335
oversight hearing to provide
00:30:04.402 --> 00:30:05.603
the authority the opportunity
00:30:05.670 --> 00:30:07.639
to report back on our progress
00:30:07.705 --> 00:30:09.541
and they have made relative to
00:30:09.607 --> 00:30:11.776
these auditor's findings and
00:30:11.843 --> 00:30:13.444
and completion of the business
00:30:13.511 --> 00:30:15.346
plan this will be part of
00:30:15.413 --> 00:30:18.249
hearing of for the authorities
00:30:18.316 --> 00:30:20.485
-- update report we hope to
00:30:20.552 --> 00:30:22.954
see this project development
00:30:23.021 --> 00:30:25.356
on time and on budget schedule
00:30:25.857 --> 00:30:28.526
-- we need to make some major
00:30:28.593 --> 00:30:29.928
changes and we need to make them
00:30:29.994 --> 00:30:32.330
now thank you thank you very
00:30:32.397 --> 00:30:34.032
much next I'd like to invite
00:30:34.098 --> 00:30:36.601
to assembly member Patterson as
00:30:36.668 --> 00:30:38.269
a co request through the audit
00:30:39.370 --> 00:30:41.005
Mister chairman thank you --
00:30:43.074 --> 00:30:44.309
I would have to be pretty blunt
00:30:46.110 --> 00:30:48.179
this audit has
00:30:48.713 --> 00:30:51.482
demonstrated to the
00:30:51.916 --> 00:30:53.418
state of California what many
00:30:53.484 --> 00:30:54.552
of us have been concerned about
00:30:54.619 --> 00:30:57.088
for years now central California
00:30:57.155 --> 00:30:58.823
is the Canary in the coal mine
00:30:59.657 --> 00:31:01.226
it is the Guinea pig and all of
00:31:01.292 --> 00:31:03.628
this and to date we have spent
00:31:03.695 --> 00:31:05.863
billions of dollars putting
00:31:05.930 --> 00:31:07.198
up concrete that's gonna run
00:31:07.265 --> 00:31:08.666
a rump rail road between just
00:31:08.733 --> 00:31:10.735
outside Madera just outside
00:31:10.802 --> 00:31:13.371
Bakersfield this audit
00:31:14.072 --> 00:31:16.307
along with other efforts to
00:31:16.374 --> 00:31:18.142
get to the facts and the truth
00:31:18.610 --> 00:31:19.611
that demonstrate that this
00:31:19.677 --> 00:31:22.180
project is in fact collapsing
00:31:23.047 --> 00:31:24.649
the last business plan came out
00:31:25.516 --> 00:31:26.851
-- I suggested that it was
00:31:26.918 --> 00:31:28.453
a going out of business plan
00:31:29.520 --> 00:31:31.422
fact there's no money to
00:31:31.489 --> 00:31:34.325
complete this fact you can't get
00:31:34.792 --> 00:31:37.228
the disparate sections connected
00:31:38.229 --> 00:31:41.199
fact the audit has
00:31:41.266 --> 00:31:43.434
confirmed what many of us were
00:31:43.501 --> 00:31:45.737
concerned about with respect
00:31:45.803 --> 00:31:47.805
to the rush to put money out
00:31:48.039 --> 00:31:49.440
when they did not have property
00:31:49.507 --> 00:31:51.509
they did not have a plan with
00:31:51.576 --> 00:31:54.112
respect to the location and
00:31:54.178 --> 00:31:57.148
relocation of utilities and this
00:31:57.215 --> 00:31:59.417
what it says it was their
00:31:59.484 --> 00:32:01.919
fault that they knew it
00:32:01.986 --> 00:32:04.055
going in and they made a
00:32:04.122 --> 00:32:07.325
calculated decision to do it
00:32:07.759 --> 00:32:09.894
and to not tell anybody
00:32:10.795 --> 00:32:12.997
and until there were a
00:32:13.064 --> 00:32:15.233
lot of concerns raised and
00:32:15.300 --> 00:32:18.136
until a new executive director
00:32:18.202 --> 00:32:19.570
Mister Kelly was put in place
00:32:19.904 --> 00:32:21.839
we finally saw a business
00:32:21.906 --> 00:32:24.642
plan that at least admitted
00:32:25.476 --> 00:32:27.645
to those facts now
00:32:27.712 --> 00:32:30.014
that that's
00:32:30.081 --> 00:32:32.183
yesterday okay what's coming
00:32:32.250 --> 00:32:34.218
tomorrow there is a federal
00:32:34.285 --> 00:32:35.820
law that going on right now it
00:32:35.887 --> 00:32:38.356
started in April and that
00:32:38.423 --> 00:32:40.758
federal audit in part is
00:32:40.825 --> 00:32:43.127
going to look at the mission
00:32:43.194 --> 00:32:46.164
use of those funds early on
00:32:47.131 --> 00:32:49.100
putting out billions of dollars
00:32:49.567 --> 00:32:51.836
knowing full well they did
00:32:51.903 --> 00:32:54.272
not have to property nor
00:32:54.472 --> 00:32:56.207
plans to get the utilities
00:32:57.141 --> 00:33:00.211
relocated they've been caught
00:33:01.479 --> 00:33:03.081
and there's going to be huge
00:33:03.147 --> 00:33:05.683
consequence in the federal on
00:33:06.584 --> 00:33:08.953
number one you got to meet
00:33:09.020 --> 00:33:10.288
their deadline this audit
00:33:10.355 --> 00:33:11.823
says you're going to have to
00:33:11.889 --> 00:33:14.625
move from very very slow slow
00:33:14.692 --> 00:33:17.528
snail pace to warp speed
00:33:18.196 --> 00:33:20.131
in four years just to
00:33:20.198 --> 00:33:22.367
meet the deadline you fail
00:33:22.433 --> 00:33:24.736
to meet the deadline or
00:33:24.802 --> 00:33:26.804
the audit confirms that
00:33:26.871 --> 00:33:28.539
that billions of dollars
00:33:28.606 --> 00:33:30.208
were miss spent initially
00:33:31.109 --> 00:33:31.943
means that there's going to
00:33:32.009 --> 00:33:33.111
be the real potential for a
00:33:33.177 --> 00:33:35.279
multi billion dollar clawback
00:33:36.447 --> 00:33:37.448
by the federal government
00:33:38.383 --> 00:33:39.717
not that's where we are
00:33:40.885 --> 00:33:43.087
all the happy talk all
00:33:43.154 --> 00:33:46.190
the -- already rosy
00:33:46.257 --> 00:33:48.359
press releases up all of
00:33:48.426 --> 00:33:50.962
the -- aerial shots
00:33:51.028 --> 00:33:52.397
from drones over a lot of
00:33:52.463 --> 00:33:53.731
concrete in the air around
00:33:53.798 --> 00:33:56.534
central California is
00:33:56.734 --> 00:33:59.737
not reality reality
00:33:59.804 --> 00:34:01.406
is embedded in this audit
00:34:02.373 --> 00:34:04.275
and as we proceed I wanna
00:34:05.877 --> 00:34:07.178
dealt a little bit deeper
00:34:08.045 --> 00:34:10.748
into the -- because it is
00:34:11.582 --> 00:34:13.651
of what I consider to be
00:34:13.985 --> 00:34:15.586
this is borderline deceit
00:34:16.854 --> 00:34:17.688
and we're going to have
00:34:17.755 --> 00:34:18.756
to get to the bottom of
00:34:18.823 --> 00:34:19.891
it and I think the federal
00:34:19.957 --> 00:34:21.259
it's going to do that but
00:34:21.325 --> 00:34:23.961
beyond that we have a time
00:34:25.463 --> 00:34:26.697
problem here that I
00:34:26.764 --> 00:34:28.499
think cannot be met
00:34:29.634 --> 00:34:32.003
and so I think the
00:34:35.373 --> 00:34:36.707
mind my intention my intention
00:34:36.774 --> 00:34:38.776
was to to perhaps go into some
00:34:39.644 --> 00:34:40.812
more detail with respect to
00:34:40.878 --> 00:34:42.880
some of that earlier concern
00:34:42.947 --> 00:34:43.815
but I'm not going to repeat
00:34:43.881 --> 00:34:45.183
them I we all aye aye other
00:34:45.249 --> 00:34:46.818
members here have said so
00:34:47.518 --> 00:34:48.619
what I would think we need
00:34:48.686 --> 00:34:51.022
to be focusing on is what
00:34:51.088 --> 00:34:53.491
the heck is your plan be
00:34:54.859 --> 00:34:56.928
because plan nay has failed
00:34:58.596 --> 00:35:00.698
and if you don't come
00:35:00.765 --> 00:35:03.100
to terms with this this
00:35:03.167 --> 00:35:05.970
project will die of its own
00:35:06.270 --> 00:35:07.839
weight when you run out of
00:35:07.905 --> 00:35:10.508
money it's going to end
00:35:10.875 --> 00:35:12.276
and Fresno California is going
00:35:12.343 --> 00:35:13.277
to be left with a bunch of
00:35:13.344 --> 00:35:14.579
concrete in the air in a rump
00:35:14.645 --> 00:35:16.481
railroad that's not good enough
00:35:19.283 --> 00:35:20.418
thank you Mister Patterson
00:35:22.720 --> 00:35:23.955
before we proceed with that
00:35:24.021 --> 00:35:24.956
today's hearing I have a
00:35:25.022 --> 00:35:27.191
few housekeeping items to
00:35:27.258 --> 00:35:29.527
make sure that -- -- we're
00:35:29.594 --> 00:35:32.096
all clear on today's agenda
00:35:32.597 --> 00:35:34.332
of first I will be asking
00:35:35.867 --> 00:35:37.635
the state auditor and her
00:35:37.702 --> 00:35:39.871
staff to present -- summary
00:35:39.937 --> 00:35:41.138
of the audit findings and
00:35:41.205 --> 00:35:44.008
recommendations -- that --
00:35:44.542 --> 00:35:46.444
will be -- I asked the honor
00:35:46.511 --> 00:35:47.778
to keep it to about fifteen
00:35:47.845 --> 00:35:49.480
minutes and and presentation
00:35:50.314 --> 00:35:52.316
following that so will ask for
00:35:52.383 --> 00:35:54.519
a response to the audit from
00:35:54.585 --> 00:35:55.620
the California high speed rail
00:35:55.686 --> 00:35:58.422
authority a similarly I ask
00:35:58.489 --> 00:35:59.423
that you keep it to around
00:35:59.490 --> 00:36:01.692
fifteen minutes Fong that to
00:36:01.759 --> 00:36:03.194
members of the of -- numbers
00:36:03.261 --> 00:36:04.962
up on the días will have --
00:36:05.763 --> 00:36:07.198
some time to ask some
00:36:07.265 --> 00:36:10.201
questions and then we will --
00:36:10.268 --> 00:36:11.669
wrap up the hearing with an
00:36:11.736 --> 00:36:13.271
opportunity for public comment
00:36:15.039 --> 00:36:15.773
is there any questions
00:36:15.840 --> 00:36:17.475
from anyone on the dies
00:36:17.542 --> 00:36:20.077
at this time say none --
00:36:20.144 --> 00:36:22.280
state auditor how in your staff
00:36:23.614 --> 00:36:25.750
thank you for your attendance
00:36:47.004 --> 00:36:47.738
thank you Mister chairman
00:36:47.805 --> 00:36:49.006
and members for the record my
00:36:49.073 --> 00:36:50.041
name's Elaine Howell in the
00:36:50.107 --> 00:36:51.642
California state auditor to
00:36:51.709 --> 00:36:53.077
my left is Tammy was on all
00:36:53.144 --> 00:36:54.478
Tammy was the audit manager
00:36:54.545 --> 00:36:55.880
on this particular project to
00:36:55.947 --> 00:36:57.248
my right is mark Reiner the
00:36:57.315 --> 00:36:58.816
mark was the audit supervisor
00:36:58.883 --> 00:37:00.551
working with the team out in
00:37:00.618 --> 00:37:03.054
the field and and engaging
00:37:03.654 --> 00:37:04.956
in conversation discussions
00:37:05.022 --> 00:37:05.823
with the high speed rail
00:37:05.890 --> 00:37:07.725
authority what I what the way
00:37:07.792 --> 00:37:09.293
will handle this presentation is
00:37:09.360 --> 00:37:11.062
I'm gonna give very high level
00:37:12.096 --> 00:37:13.764
overview of the issues that
00:37:13.831 --> 00:37:15.132
we identified that I'll turn
00:37:15.199 --> 00:37:16.500
it over to ms Lozano who will
00:37:16.567 --> 00:37:17.935
talk about one specific issue
00:37:18.002 --> 00:37:18.769
that we talk about in the
00:37:18.836 --> 00:37:20.671
report and then Mr Reiner day I
00:37:20.738 --> 00:37:21.806
will discuss some of the other
00:37:21.872 --> 00:37:24.175
issues so as many of the
00:37:24.241 --> 00:37:25.810
members have mentioned in their
00:37:25.876 --> 00:37:27.912
opening comments this audit
00:37:27.979 --> 00:37:29.280
covered a variety of different
00:37:29.347 --> 00:37:30.948
issues that -- the joint
00:37:31.015 --> 00:37:32.016
legislative audit committee
00:37:32.083 --> 00:37:33.985
and particulates senator bail
00:37:34.285 --> 00:37:35.753
Assemblymembers Arambula and
00:37:35.820 --> 00:37:37.188
and Mister Patterson asked us
00:37:37.254 --> 00:37:38.522
to look at and that was related
00:37:38.589 --> 00:37:40.625
to cost containment contract
00:37:40.691 --> 00:37:43.494
management -- contracting with
00:37:43.561 --> 00:37:45.763
small disadvantaged disabled
00:37:45.830 --> 00:37:47.932
veteran business is looking at
00:37:47.999 --> 00:37:49.667
their sustainability policies
00:37:49.734 --> 00:37:51.636
looking at economic impacts
00:37:51.969 --> 00:37:53.070
recall at the hearing Mister
00:37:53.137 --> 00:37:54.705
around a lot particularly --
00:37:54.772 --> 00:37:56.874
focused on that and then also
00:37:56.941 --> 00:37:58.609
asking us to look to determine
00:37:58.676 --> 00:38:00.177
whether or not there are any
00:38:00.244 --> 00:38:01.746
additional opportunities for
00:38:01.812 --> 00:38:03.014
the high speed rail authority
00:38:03.080 --> 00:38:04.448
to expedite this project to
00:38:04.515 --> 00:38:06.751
try to get it done more quickly
00:38:06.984 --> 00:38:09.086
so we have issues with all of
00:38:09.153 --> 00:38:10.254
those as some of the opening
00:38:10.321 --> 00:38:12.223
comments mentioned clearly
00:38:12.289 --> 00:38:14.959
there has been -- some
00:38:16.727 --> 00:38:19.230
cost over runs delays in the
00:38:19.296 --> 00:38:21.565
project as far as consistently
00:38:21.632 --> 00:38:22.633
and the authority having to
00:38:22.700 --> 00:38:25.302
consistently push deadlines out
00:38:25.903 --> 00:38:27.972
as you know we audited this
00:38:28.039 --> 00:38:29.473
project -- many many years
00:38:29.540 --> 00:38:31.142
ago contract management wasn't
00:38:31.208 --> 00:38:32.376
issue we identified in the
00:38:32.443 --> 00:38:33.878
very first thought it we did
00:38:33.944 --> 00:38:35.279
which was back in twenty ten
00:38:35.346 --> 00:38:37.348
we also did another audit --
00:38:37.415 --> 00:38:38.716
in twenty twelve which was a
00:38:38.783 --> 00:38:40.518
follow up contract management
00:38:40.584 --> 00:38:41.952
was a significant problem in
00:38:42.019 --> 00:38:43.454
those audits and it continues
00:38:43.521 --> 00:38:44.722
to be a problem and that is
00:38:44.789 --> 00:38:46.390
something that really the high
00:38:46.457 --> 00:38:47.858
speed rail authority needs to
00:38:47.925 --> 00:38:49.727
focus on and one of the issues
00:38:49.794 --> 00:38:51.629
tied to that that we discussed
00:38:51.696 --> 00:38:52.863
in the audit report is there's a
00:38:52.930 --> 00:38:55.032
reliance on contractors we are
00:38:55.099 --> 00:38:56.634
not bringing in the authority
00:38:56.701 --> 00:38:58.169
is not bringing in and hiring
00:38:58.235 --> 00:39:00.304
state employees ought to be able
00:39:00.371 --> 00:39:02.440
to do some of these oversight
00:39:02.506 --> 00:39:03.374
or perform some of these
00:39:03.441 --> 00:39:05.042
oversight responsibilities why
00:39:05.109 --> 00:39:06.177
is that important because you
00:39:06.243 --> 00:39:07.478
have contractors overseeing
00:39:07.545 --> 00:39:09.146
other contractors and there
00:39:09.213 --> 00:39:10.247
could potentially be a
00:39:10.314 --> 00:39:11.816
conflict of interest there you
00:39:10.648 --> 00:39:12.583
INTEREST THERE YOU NEED TO HAVE
00:39:12.650 --> 00:39:14.018
SOME STATE EMPLOYEES --
00:39:14.085 --> 00:39:15.286
THE REASON I BRING THIS UP WE
00:39:15.352 --> 00:39:17.455
ALSO LOOKED AT THEIR RESPONSE TO
00:39:17.521 --> 00:39:19.123
THAT AND THEY AGREED AND THEY'VE
00:39:19.190 --> 00:39:20.424
AGREED IN THE PAST.
00:39:20.491 --> 00:39:22.893
WHAT THEY'RE SUGGESTING IS THAT
00:39:22.960 --> 00:39:24.028
THEY WILL --
00:39:24.095 --> 00:39:25.596
PUT A B. C. P. N. FOR FISCAL
00:39:25.663 --> 00:39:26.864
YEAR.
00:39:26.931 --> 00:39:27.398
TWENTY TWENTY ONE SO WE'RE
00:39:27.465 --> 00:39:28.432
LOOKING AT ANOTHER YEAR AND A
00:39:28.499 --> 00:39:30.367
HALF BEFORE THEY EVEN GET THE
00:39:30.434 --> 00:39:31.569
FUNDING OR AT LEAST THEY'RE
00:39:31.635 --> 00:39:33.237
PURSUING THE FUNDING TO HIRE
00:39:33.304 --> 00:39:34.472
ADDITIONAL STATE EMPLOYEES WE
00:39:34.538 --> 00:39:35.840
THINK THAT'S FAR.
00:39:35.906 --> 00:39:37.708
TOO FOR FAR TOO LONG --
00:39:37.775 --> 00:39:39.009
FAR TOO FAR OUT.
00:39:39.076 --> 00:39:40.010
SO -- THE
00:39:40.077 --> 00:39:41.312
AUTHORITY NEEDS TO ADDRESS THAT
00:39:41.378 --> 00:39:42.279
SO.
00:39:42.346 --> 00:39:43.981
COST OVERRUNS DELAYS IN
00:39:44.048 --> 00:39:45.750
CONSTRUCTION THE ISSUE WITH
00:39:45.816 --> 00:39:47.284
RESPECT TO THE FEDERAL DOLLARS
00:39:47.351 --> 00:39:48.652
THAT IS A SIGNIFICANT RISK TO
00:39:48.719 --> 00:39:50.688
THE STATE OF CALIFORNIA NOT JUST
00:39:50.755 --> 00:39:51.689
TO THE AUTHORITY BUT TO THE
00:39:51.756 --> 00:39:54.492
STATE OF CALIFORNIA WE ARE REFER --
00:39:54.558 --> 00:39:56.160
TO GAO OPINION THE GOVERNMENT
00:39:56.227 --> 00:39:57.428
ACCOUNTABILITY ARE FEDERAL
00:39:57.495 --> 00:39:59.063
COUNTER POUT COMING APART THAT
00:39:59.130 --> 00:40:00.664
AUDITS ON BEHALF OF THE FEDERAL
00:40:00.731 --> 00:40:03.300
GOVERNMENT ON BEHALF OF CONGRESS --
00:40:03.367 --> 00:40:05.069
IN IN THAT OPINION IT MADE IT
00:40:05.136 --> 00:40:06.437
VERY CLEAR THAT THERE HAVE BEEN
00:40:06.504 --> 00:40:08.272
INSTANCES IN THE PAST WHERE THE
00:40:08.339 --> 00:40:10.040
FEDERAL GOVERNMENT CAN EITHER
00:40:10.107 --> 00:40:12.576
RECOUP FUNDS OR OFFSET FUTURE
00:40:12.643 --> 00:40:15.646
FUNDS TO A STATE AND THEY HAVE
00:40:15.713 --> 00:40:17.281
DONE THAT. ONE MINOR AMOUNT FOR
00:40:17.348 --> 00:40:19.016
CALIFORNIA BUT THEY HAVE THAT
00:40:19.083 --> 00:40:20.017
DON'T HAVE DONE THAT WITH SOME
00:40:20.084 --> 00:40:22.286
OTHER STATES SO THAT A LOOMING
00:40:22.353 --> 00:40:24.455
DEADLINE OF THE FEDERAL DEADLINE
00:40:24.522 --> 00:40:25.823
IS DECEMBER.
00:40:25.890 --> 00:40:26.423
TWENTY TWENTY TO THE AUTHORITY
00:40:26.490 --> 00:40:26.991
IS SUGGESTING THAT THEY WILL
00:40:27.057 --> 00:40:30.427
COMPLETE MARCH OF TWENTY TWENTY
00:40:30.494 --> 00:40:31.295
TWO BUT EVEN AT THE BOARD
00:40:31.362 --> 00:40:32.797
MEETING WHEN THEY PRESENTED THAT
00:40:32.863 --> 00:40:34.498
INFORMATION TO THE BOARD.
00:40:34.565 --> 00:40:35.699
OF THE DEPUTY CHIEF OPERATING
00:40:35.766 --> 00:40:36.867
OFFICER SAID WELL IT'S A VERY
00:40:36.934 --> 00:40:38.602
VERY AGGRESSIVE SCHEDULE AND AS
00:40:38.669 --> 00:40:40.171
WE INDICATE IN THE AUDIT REPORT.
00:40:40.237 --> 00:40:41.705
THEY WOULD HAVE TO BE ABLE TO
00:40:41.772 --> 00:40:42.573
PERFORM.
00:40:42.640 --> 00:40:44.642
AT WORK AT TWICE THE PACE THAT
00:40:44.708 --> 00:40:47.144
THEY HAVE BEEN ABLE TO DO SINCE
00:40:47.211 --> 00:40:47.912
TWENTY THIRTEEN SINCE THEY
00:40:47.978 --> 00:40:48.779
STARTED WORKING ON THIS
00:40:48.846 --> 00:40:50.548
PARTICULAR PROJECT --
00:40:50.614 --> 00:40:52.283
THEY HAVE --
00:40:52.349 --> 00:40:54.018
ENGAGED IN BLENDING MISSILE IS
00:40:54.084 --> 00:40:55.586
ON A WILL TALK A LITTLE BIT
00:40:55.653 --> 00:40:56.187
ABOUT THE BENEFITS AND SOME OF
00:40:56.253 --> 00:40:58.389
THE YOU KNOW THE OFFSETS OF
00:40:58.455 --> 00:40:59.523
BLENDING.
00:40:59.590 --> 00:41:00.524
WITH RESPECT TO THAT BUT THAT'S
00:41:00.591 --> 00:41:03.294
CERTAINLY HAS ASSISTED IN IN
00:41:03.360 --> 00:41:05.396
CONTROLLING COST MR WRITER HE IS
00:41:05.462 --> 00:41:06.597
GOING TO TALK A LOT ABOUT
00:41:06.664 --> 00:41:08.399
CONTRACT MANAGEMENT --%
00:41:08.465 --> 00:41:09.567
AGAIN THIS IS AN AREA THAT WHERE
00:41:09.633 --> 00:41:11.602
WE WE FIND SIGNIFICANT ISSUES
00:41:11.669 --> 00:41:13.704
THE OWN THE INTERNAL AUDITOR FOR
00:41:13.771 --> 00:41:14.305
THE HIGH SPEED RAIL AUTHORITY
00:41:14.371 --> 00:41:15.673
HAS IDENTIFIED ISSUES WITH
00:41:15.739 --> 00:41:16.941
RESPECT TO THAT.
00:41:17.007 --> 00:41:18.676
POOR CONTRACT MANAGEMENT RESULTS
00:41:18.742 --> 00:41:20.344
IN MORE CHANGE ORDERS --
00:41:20.411 --> 00:41:21.879
WHICH INCREASES COSTS WHICH
00:41:21.946 --> 00:41:24.215
PUSHES OUT TIME TIME IS MONEY AS
00:41:24.281 --> 00:41:25.583
MR ARAMBULA SAID AT THE JAIL
00:41:25.649 --> 00:41:26.550
LIKE HEARING.
00:41:26.617 --> 00:41:28.485
SO THE MORE CHANGE ORDERS THE
00:41:28.552 --> 00:41:29.720
MORE.
00:41:29.787 --> 00:41:30.254
YOU'RE HAVING TO PUSH THE
00:41:30.321 --> 00:41:32.256
PROJECT OUT THE COSTS ARE GOING
00:41:32.323 --> 00:41:34.692
TO INCREASE ANOTHER CONCERN IS
00:41:34.758 --> 00:41:36.694
THE MOST COMPLEX WORK THAT NEEDS
00:41:36.760 --> 00:41:40.731
TO BE DONE IS IN THE FUTURE
00:41:40.798 --> 00:41:41.265
WHERE THEY'RE CONSIDERING
00:41:41.332 --> 00:41:41.565
TUNNELING.
00:41:41.632 --> 00:41:42.166
AND AND THEY DON'T HAVE THE
00:41:42.233 --> 00:41:43.601
ABILITY TO DO ANY KIND OF
00:41:43.667 --> 00:41:45.269
BLENDING OR ANY OFFSETTING SO
00:41:45.336 --> 00:41:47.238
THERE'S A SIGNIFICANT RISK THAT
00:41:47.304 --> 00:41:48.539
THE THE COST OF THIS PARTICULAR
00:41:48.606 --> 00:41:50.074
PROJECT IS GOING TO ESCALATE
00:41:50.140 --> 00:41:55.145
EVEN MORE THAN IT HAS. TO DATE --
00:41:55.212 --> 00:41:56.480
COUPLE OF OTHER ISSUES AND THEN
00:41:56.547 --> 00:41:57.715
I'M GONNA TURN IT OVER AGAIN
00:41:57.781 --> 00:41:59.984
SUSTAINABILITY WE ACTUALLY DID
00:42:00.050 --> 00:42:02.219
HIRE AN OUTSIDE EXPERT A LOOKED
00:42:02.286 --> 00:42:03.687
AT WHAT THE AUTHORITY A PUT
00:42:03.754 --> 00:42:04.722
TOGETHER AS FAR AS THEIR
00:42:04.788 --> 00:42:06.223
POLICIES AND AND THEY AGREED
00:42:06.290 --> 00:42:07.224
THAT THEIR POLICIES LOOK PRETTY
00:42:07.291 --> 00:42:07.892
GOOD.
00:42:07.958 --> 00:42:09.693
BUT THEY DID HAVE SOME CONCERNS
00:42:09.760 --> 00:42:11.262
WITH RESPECT --
00:42:11.328 --> 00:42:13.230
TO ANALYZING THE EFFECT OF
00:42:13.297 --> 00:42:14.431
CONSTRUCTION THEY'RE THEY'RE
00:42:14.498 --> 00:42:15.900
BASICALLY COMBINING EVERYTHING
00:42:15.966 --> 00:42:16.934
AND REALLY FOCUSING ON
00:42:17.001 --> 00:42:18.903
SUSTAINABILITY IN LOOKING AT A
00:42:18.969 --> 00:42:20.804
PROJECT THAT'S COMPLETE HOW MANY
00:42:20.871 --> 00:42:21.605
CARS ARE GOING TO COME OFF THE
00:42:21.672 --> 00:42:22.806
ROAD -- IF
00:42:22.873 --> 00:42:24.608
PEOPLE USE HIGH SPEED RAIL SO MR
00:42:24.675 --> 00:42:25.542
REINER YOU'LL TALK A LITTLE BIT
00:42:25.609 --> 00:42:26.610
ABOUT THAT.
00:42:26.677 --> 00:42:29.246
THE LAST ISSUE IS RELATED TO THE
00:42:29.313 --> 00:42:30.681
USE OF SMALL BUSINESSES JUST
00:42:30.748 --> 00:42:31.682
DISABLED.
00:42:31.749 --> 00:42:34.051
VETERAN BUSINESSES --
00:42:34.118 --> 00:42:34.652
THEY SAID OF PRETTY LOFTY GOAL
00:42:34.718 --> 00:42:37.254
OF THIRTY SAW IN SOME OF THE
00:42:37.321 --> 00:42:39.390
WORK THAT WE ANALYZE THAT THEY
00:42:39.456 --> 00:42:40.791
THEY WERE ABLE TO ACHIEVE THAT
00:42:40.858 --> 00:42:42.026
SO THERE IS.
00:42:42.092 --> 00:42:43.694
A FAIR AMOUNT OF BUSINESS THAT'S
00:42:43.761 --> 00:42:45.329
GOING TO SMALL AND DISADVANTAGED
00:42:45.396 --> 00:42:46.463
AND CERTAINLY DISABLED VETERAN
00:42:46.530 --> 00:42:48.465
BUSINESS IS WHAT WE THINK THEY
00:42:48.532 --> 00:42:49.667
NEED TO DO A BETTER JOB OF THERE
00:42:49.733 --> 00:42:51.669
IS TRANSPARENCY THERE ARE SOME
00:42:51.735 --> 00:42:52.803
CONTRACTS THAT THEY HAVE
00:42:52.870 --> 00:42:54.171
EXEMPTED FROM.
00:42:54.238 --> 00:42:56.340
THAT REPORTING SO WE THINK THAT
00:42:56.407 --> 00:42:57.875
THEY JUST NEED TO TO DISCLOSE
00:42:57.942 --> 00:42:59.209
THAT INFORMATION AND BE A BIT
00:42:59.276 --> 00:43:00.678
MORE FORTHRIGHT WITH RESPECT TO
00:43:00.744 --> 00:43:01.645
THAT.
00:43:01.712 --> 00:43:03.080
SO WE DO HAVE A VARIETY OF
00:43:03.147 --> 00:43:04.181
RECOMMENDATIONS ONE KEY
00:43:04.248 --> 00:43:05.950
RECOMMENDATION THAT WE WE TALK
00:43:06.016 --> 00:43:07.318
TO CENTER BELL WHEN WE BRIEFED
00:43:07.384 --> 00:43:08.919
HIM ON THIS REPORT IS.
00:43:08.986 --> 00:43:10.020
REQUIRING THE AUTHORITY TO
00:43:10.087 --> 00:43:11.622
PROVIDE QUARTERLY UPDATES TO THE
00:43:11.689 --> 00:43:12.856
LEGISLATURE SO THAT THE
00:43:12.923 --> 00:43:15.292
LEGISLATURE IS KEPT INFORMED OF
00:43:15.359 --> 00:43:16.894
THEIR PROGRESS PARTICULARLY WITH
00:43:16.961 --> 00:43:18.162
THIS DEADLINE.
00:43:18.228 --> 00:43:19.964
OF DECEMBER TWENTY TWENTY TWO
00:43:20.030 --> 00:43:21.632
RELATED TO THE FEDERAL DOLLARS --
00:43:21.699 --> 00:43:23.033
IN THE FEDERAL GRANT THAT THAT
00:43:23.100 --> 00:43:24.301
CALIFORNIA RECEIVED FOR THIS
00:43:24.368 --> 00:43:26.236
PROJECT WE HAVE ALSO HAVE OTHER
00:43:26.303 --> 00:43:27.805
RECOMMENDATIONS THAT WE'VE MADE
00:43:27.871 --> 00:43:29.239
TO THE AUTHORITY --
00:43:29.306 --> 00:43:31.442
AND THEY HAVE IN IN MOST CASES
00:43:31.508 --> 00:43:32.876
EMBRACE THE RECOMMENDATIONS AND
00:43:32.943 --> 00:43:34.511
INTEND TO IMPLEMENT THEM AS YOU
00:43:34.578 --> 00:43:35.746
KNOW WE DO HAVE A FOLLOW UP
00:43:35.813 --> 00:43:36.613
PROCESS.
00:43:36.680 --> 00:43:38.415
WHERE WE WILL EXPECT PERIODIC
00:43:38.482 --> 00:43:40.784
REPORTS TYPICALLY THAT SIXTY DAY
00:43:40.851 --> 00:43:42.052
SIX MONTHS ONE YEAR --
00:43:42.119 --> 00:43:44.088
AS I MENTIONED TO SOME MEMBERS
00:43:44.154 --> 00:43:45.589
ONE WE BRIEF THEM ON THIS AUDIT
00:43:45.656 --> 00:43:47.391
WE CAN CERTAINLY --
00:43:47.458 --> 00:43:48.859
INCLUDE MORE FREQUENT BRIEFING
00:43:48.926 --> 00:43:50.461
ARE MORE FREQUENT STATUS UPDATES
00:43:50.527 --> 00:43:51.962
FROM THE AUTHORITY DOESN'T HAVE
00:43:52.029 --> 00:43:53.097
TO BE THAT TIME FROM WE CAN
00:43:53.163 --> 00:43:54.465
CERTAINLY CHANGE THAT.
00:43:54.531 --> 00:43:55.599
AND THAT WOULD ALLOW US TO
00:43:55.666 --> 00:43:57.801
PROVIDE YOU ARE PERSPECTIVE ON
00:43:57.868 --> 00:43:59.336
WHAT THE AUTHORITY IS ASSERTING.
00:43:59.403 --> 00:44:00.437
WITH THAT MISTER CHAIRMAN I'LL
00:44:00.504 --> 00:44:01.939
TURN IT OVER THE MISSILES ON
00:44:02.006 --> 00:44:02.473
WHEN SHE'S GOING TO TALK A
00:44:02.539 --> 00:44:03.574
LITTLE BIT ABOUT --
00:44:03.640 --> 00:44:05.209
THE DISCUSSIONS IN THE AUDIT
00:44:05.275 --> 00:44:11.348
REPORT RELATED.
00:44:11.415 --> 00:44:13.951
TO THANK YOU GOOD MORNING --
00:44:14.018 --> 00:44:14.785
CHAIR AND MEMBERS OF THE
00:44:14.852 --> 00:44:16.120
COMMITTEES --
00:44:16.186 --> 00:44:17.988
AS THE STATE AUDITOR MENTION I'M
00:44:18.055 --> 00:44:19.356
GOING TO TALK ABOUT --
00:44:19.423 --> 00:44:20.758
BLENDING THE SYSTEM WAS
00:44:20.824 --> 00:44:22.126
ORIGINALLY --
00:44:22.192 --> 00:44:24.294
PLANNED A STANDALONE DEDICATE
00:44:24.361 --> 00:44:25.662
SYSTEM TO COVER SEVEN HUNDRED
00:44:25.729 --> 00:44:27.331
MILES IN CALIFORNIA.
00:44:27.398 --> 00:44:29.266
AND BECAUSE OF THE RISING COSTS
00:44:29.333 --> 00:44:33.971
AND BECAUSE OF THE RISING COSTS
00:44:34.038 --> 00:44:36.206
THE THE AUTHORITY HAD STARTED
00:44:36.273 --> 00:44:38.308
IMPLEMENTING --
00:44:38.375 --> 00:44:41.178
THE BLENDING PROCESS --
00:44:41.245 --> 00:44:43.113
IT FIRST IN INTRODUCED BLENDING
00:44:43.180 --> 00:44:44.915
IN ITS TWENTY TWELVE BUSINESS
00:44:44.982 --> 00:44:46.283
PLAN --
00:44:46.350 --> 00:44:47.951
DISSECT THE SEGMENT BETWEEN SAN
00:44:48.018 --> 00:44:50.154
FRANCISCO AND SAN JOSE WAS THE
00:44:50.220 --> 00:44:51.522
FIRST --
00:44:51.588 --> 00:44:53.090
SECTION TO BE BLENDED.
00:44:53.157 --> 00:44:57.327
IN TWENTY SIXTEEN IT ADDED A-BLENDING OF A SECOND SEGMENT
00:44:57.394 --> 00:44:57.961
BETWEEN GREAT.
00:44:58.028 --> 00:45:00.497
BURBANK IN LOS ANGELES AND AGAIN
00:45:00.564 --> 00:45:02.433
IN TWENTY EIGHTEEN IT ADDED A
00:45:02.499 --> 00:45:03.834
THIRD SEGMENT --
00:45:03.901 --> 00:45:07.971
BETWEEN SAN JOSE AND GILROY --
00:45:08.038 --> 00:45:09.873
THERE ARE TRADE OFFS --
00:45:09.940 --> 00:45:11.442
THAT COME WITH BLENDING OF
00:45:11.508 --> 00:45:12.509
BLENDING --
00:45:12.576 --> 00:45:16.013
PROVIDES A LOT OF COST SAVINGS.
00:45:16.080 --> 00:45:18.015
FOR THE AUTHORITIES ESTIMATED
00:45:18.082 --> 00:45:19.450
COSTS -- WE
00:45:19.516 --> 00:45:21.685
DID AN ANALYSIS OF THE
00:45:21.752 --> 00:45:24.054
COMPONENTS THAT WERE BLENDED AND
00:45:24.121 --> 00:45:26.123
THERE IS ROUGHLY. TEN POINT NINE
00:45:26.190 --> 00:45:27.424
BILLION DOLLARS IN SAVINGS
00:45:27.491 --> 00:45:30.060
BECAUSE OF THE TRANSITION TO
00:45:30.127 --> 00:45:31.995
BLENDING --
00:45:32.062 --> 00:45:36.867
SO WE SEE THIS IS A POSITIVE --
00:45:36.934 --> 00:45:40.003
POSITIVE MECHANISM.
00:45:40.070 --> 00:45:40.804
WITH THE BLENDING COME STRAIGHT
00:45:40.871 --> 00:45:44.842
OFF -- THE
00:45:44.908 --> 00:45:46.543
COST SAVINGS --
00:45:46.610 --> 00:45:51.148
SORRY.
00:45:51.215 --> 00:45:52.216
WHAT POINTING?
00:45:52.282 --> 00:45:52.916
THEY ARE SHARING TRACKING
00:45:52.983 --> 00:45:54.084
CORRIDORS WITH OTHER REAL
00:45:54.151 --> 00:45:55.252
PROVIDERS --
00:45:55.319 --> 00:45:58.055
AND SO THERE ARE LIMITS ON THE
00:45:58.122 --> 00:46:00.124
SPEED AT WHICH THE THE TRAINS
00:46:00.190 --> 00:46:01.558
CAN TRAVEL IN THOSE SHARE
00:46:01.625 --> 00:46:02.759
CORRIDORS.
00:46:02.826 --> 00:46:03.827
ADDITIONALLY BECAUSE THEY'RE
00:46:03.894 --> 00:46:04.862
SHARING --
00:46:04.928 --> 00:46:06.663
OPERATIONS WITH TO RUN THE
00:46:06.730 --> 00:46:08.499
TRAINS THEIR LIMITED IN HOW MANY
00:46:08.565 --> 00:46:09.933
TRAINS THEY CAN RUN SO THAT'S A
00:46:10.000 --> 00:46:11.802
TRADE OFF AS COMPARED TO THE
00:46:11.869 --> 00:46:13.437
DEDICATED SYSTEM.
00:46:13.504 --> 00:46:15.772
THE THE IMPACTS AS THE SPECIFIC
00:46:15.839 --> 00:46:19.743
IMPACTS OF THOSE --
00:46:19.810 --> 00:46:21.044
TRADE OFFS --
00:46:21.111 --> 00:46:21.979
THOSE -- THE
00:46:22.045 --> 00:46:27.217
BLENDING.
00:46:27.284 --> 00:46:28.986
WILL NOT BE KNOWN AS NOT KNOWN
00:46:29.052 --> 00:46:31.021
AT THIS TIME AND BECAUSE THEY
00:46:31.088 --> 00:46:39.530
DON'T HAVE THE SYSTEM BUILT --
00:46:39.596 --> 00:46:41.632
WE ALSO DID AN ANALYSIS TO
00:46:41.698 --> 00:46:44.034
COMPARE THE COSTS THAT WOULD
00:46:44.101 --> 00:46:44.568
HAVE OCCURRED HAD THEY NOT
00:46:44.635 --> 00:46:45.969
BLENDED --
00:46:46.036 --> 00:46:48.605
AND ARE NOW ALSO SHOWS THAT THE
00:46:48.672 --> 00:46:51.508
COST ESTIMATES WOULD HAVE BEEN A
00:46:51.575 --> 00:46:52.676
HUNDRED AND 11%.
00:46:52.743 --> 00:46:54.244
HAD THEY NOT BLENDED --
00:46:54.311 --> 00:46:56.013
WITH THE BLENDING IT'S THE COST
00:46:56.079 --> 00:47:01.251
INCREASES ARE 81%.
00:47:01.318 --> 00:47:02.653
WHILE BLENDING HAS REDUCE THE
00:47:02.719 --> 00:47:04.555
SYSTEMS EXPECTED COSTS IT'S
00:47:04.621 --> 00:47:06.323
IMPORTANT TO REMEMBER AS THE
00:47:06.390 --> 00:47:06.823
STATE AUDITOR MENTIONED
00:47:06.890 --> 00:47:07.791
PREVIOUSLY.
00:47:07.858 --> 00:47:09.393
THERE ARE NO MORE OPTIONS TO
00:47:09.459 --> 00:47:11.028
BLEND THEY BLENDED EVERYWHERE
00:47:11.094 --> 00:47:13.463
THAT THEY CAN.
00:47:13.530 --> 00:47:16.066
SO IT'S IMPORTANT THAT THEY FIND
00:47:16.133 --> 00:47:18.802
WAYS TO CONTAIN THE COST AND
00:47:18.869 --> 00:47:21.371
DEAL WITH THE COST OVERRUNS --
00:47:21.438 --> 00:47:22.739
SO THAT THEY CAN DELIVER THE
00:47:22.806 --> 00:47:26.410
SYSTEM.
00:47:26.476 --> 00:47:28.278
NEXT --
00:47:28.345 --> 00:47:28.812
MARKS GONNA TALK ABOUT THE
00:47:28.879 --> 00:47:29.246
CONTRACT [inaudible]
00:47:29.313 --> 00:47:35.352
THANK YOU.
00:47:35.419 --> 00:47:36.920
GOOD MORNING MISTER CHAIR
00:47:36.987 --> 00:47:37.521
COMMITTEE MEMBERS MY NAME IS
00:47:37.588 --> 00:47:38.555
MARK RUNNER THE WITH A
00:47:38.622 --> 00:47:39.089
CALIFORNIA STATE AUDITOR'S
00:47:39.156 --> 00:47:40.857
OFFICE.
00:47:40.924 --> 00:47:41.458
HI THE STATE ATER SUMMERS THE
00:47:41.525 --> 00:47:43.360
BEGINNING I'M GOING TO TELL YOU
00:47:43.427 --> 00:47:43.594
ABOUT --
00:47:43.660 --> 00:47:45.562
THAT KIND OF CRITICAL MASS OF
00:47:45.629 --> 00:47:46.163
OUR FINDINGS RECOMMENDATIONS
00:47:46.230 --> 00:47:47.631
HAVE TO DO --
00:47:47.698 --> 00:47:48.799
WITH A COUPLE DIFFERENT ASPECTS
00:47:48.865 --> 00:47:50.367
OF THE AUTHORITIES CONTRACT
00:47:50.434 --> 00:47:51.835
MANAGEMENT PROCESS SEES AND THEN
00:47:51.902 --> 00:47:53.036
I WILL SUMMARIZE SOME OF THE
00:47:53.103 --> 00:47:54.538
OTHER OBJECTIVES WE DISCUSSED --
00:47:54.605 --> 00:47:58.809
IN THE REPORT. FOR BEING --
00:47:58.875 --> 00:48:00.877
STARTING WITH THE THE CENTRAL
00:48:00.944 --> 00:48:01.778
VALLEY CONTRACTS FOR
00:48:01.845 --> 00:48:03.580
CONSTRUCTION THE AUTHORITY HAS
00:48:03.647 --> 00:48:04.615
THREE ACTIVE CONSTRUCTION
00:48:04.681 --> 00:48:06.316
CONTRACTS IN THE CENTRAL VALLEY.
00:48:06.383 --> 00:48:07.251
WHICH RESCUED WITH AN INITIAL
00:48:07.317 --> 00:48:09.419
VALUE OF TWO POINT FIVE BILLION
00:48:09.486 --> 00:48:13.090
DOLLARS TO COMPLETE --
00:48:13.156 --> 00:48:14.691
THAT ONE OF THE OBJECTIVES THAT
00:48:14.758 --> 00:48:15.525
JOE INSTEAD OF AUDIT COMMITTEE
00:48:15.592 --> 00:48:16.627
DIRECTED US TO EXAMINE WAS THAT
00:48:16.693 --> 00:48:17.995
RELATED TO CHANGE ORDERS OF
00:48:18.061 --> 00:48:19.263
THOSE CONTRACTS SO THOSE.
00:48:19.329 --> 00:48:20.063
CHANGE ORDERS FUNCTIONS
00:48:20.130 --> 00:48:21.498
AMENDMENTS TO THE CONSTRUCTION
00:48:21.565 --> 00:48:24.167
CONTRACTS AND CAN ARISE WHEN.
00:48:24.234 --> 00:48:25.002
GENERALLY --
00:48:25.068 --> 00:48:26.236
ADDITIONAL SCOPE OF WORK IS
00:48:26.303 --> 00:48:28.138
ADDED OR WHEN THE CIRCUMSTANCES
00:48:28.205 --> 00:48:29.606
ARISE THAT.
00:48:29.673 --> 00:48:31.008
INHIBIT THE COULD A CONTRACTOR
00:48:31.074 --> 00:48:33.210
FROM CARRYING OUT THE PLANS AS
00:48:33.277 --> 00:48:34.645
DESIGNED.
00:48:34.711 --> 00:48:35.746
ON AN EXAMPLE OF THE OF THE
00:48:35.812 --> 00:48:36.280
FIRST TYPE WOULD BE THE
00:48:36.346 --> 00:48:38.115
AUTHORITIES DECISION TO EXTEND --
00:48:38.181 --> 00:48:39.816
THE THE NORTH MOST CONSTRUCTION
00:48:39.883 --> 00:48:41.518
PROJECT UP TO MADERA ASSETS AND
00:48:41.585 --> 00:48:42.919
IT JUST A CLEAR ADDITION OF
00:48:42.986 --> 00:48:44.488
SCOPE TO THE ORIGINAL CONTRACT.
00:48:44.554 --> 00:48:46.823
HOWEVER WE ALSO.
00:48:46.890 --> 00:48:48.091
IDENTIFIED MANY INSTANCES ARE
00:48:48.158 --> 00:48:49.693
COSTING MANY MANY MILLIONS OF
00:48:49.760 --> 00:48:51.695
DOLLARS RELATED --
00:48:51.762 --> 00:48:54.131
TO CIRCUMSTANCES THAT --
00:48:54.197 --> 00:48:55.265
EMERGE DURING CONSTRUCTION THAT
00:48:55.332 --> 00:48:57.334
HAD TO DO WITH RISKY AUTHORITY
00:48:57.401 --> 00:48:59.369
WAS AWARE OF WHEN IT EXCEEDED
00:48:59.436 --> 00:49:01.705
THOSE CONTRACTS --
00:49:01.772 --> 00:49:02.873
SPECIFICALLY --
00:49:02.939 --> 00:49:04.207
CONTRACTS CHANGES TO THOSE THREE
00:49:04.274 --> 00:49:05.309
CONTRACTS TO DATE AT THE TIME OF
00:49:05.375 --> 00:49:06.810
OUR REVIEW HOW REPRESENTED TO
00:49:06.877 --> 00:49:07.778
SIX HUNDRED MILLION DOLLARS
00:49:07.844 --> 00:49:09.713
INCREASES OVER ORIGINAL VALUE
00:49:09.780 --> 00:49:11.581
BRINGING THE TOTAL COMBINED I TO
00:49:11.648 --> 00:49:14.351
THREE POINT ONE BILLION --
00:49:14.418 --> 00:49:17.621
BUT ALSO AGAIN TO DATE EXECUTED --
00:49:17.688 --> 00:49:18.855
A COMBINED ARE SHE WOULD HAVE I
00:49:18.922 --> 00:49:20.357
SHOULD SAY NINE MONTHS TO THE
00:49:20.424 --> 00:49:21.558
COMPLETION OF THE THREE
00:49:21.625 --> 00:49:23.193
CONSTRUCTION PROJECT PRODUCT
00:49:23.260 --> 00:49:24.561
PACKAGES AS A WHOLE.
00:49:24.628 --> 00:49:25.128
HOW?
00:49:25.195 --> 00:49:25.595
WE EXAMINED --
00:49:25.662 --> 00:49:29.066
THE IS THE CHANGE ORDERS BOTH A
00:49:29.132 --> 00:49:31.501
SUSPECT INDIVIDUAL CHANGE ORDERS
00:49:31.568 --> 00:49:32.903
AND ALSO A KIND OF MORE GLOBAL
00:49:32.969 --> 00:49:33.904
LEVEL.
00:49:33.970 --> 00:49:35.439
I WITH RESPECT INDIVIDUAL CHANGE
00:49:35.505 --> 00:49:37.808
ORDERS WE FOUND THAT AT CERTAIN
00:49:37.874 --> 00:49:38.975
INSTANCES.
00:49:39.042 --> 00:49:41.745
THE AUTHORITY WAS GOING AGAINST
00:49:41.812 --> 00:49:42.346
THE INITIAL --
00:49:42.412 --> 00:49:43.880
ADVICE DETERMINATIONS OF THE
00:49:43.947 --> 00:49:46.350
OVERSIGHT FIRMS EMPLOYEES TO
00:49:46.416 --> 00:49:47.584
HELP IT REVIEW I REQUEST A
00:49:47.651 --> 00:49:49.252
CHANGES FROM THE CONSTRUCTION
00:49:49.319 --> 00:49:50.320
CONTRACTORS TO ENSURE THAT THOSE
00:49:50.387 --> 00:49:51.755
CHANGES HAVE MERIT AND ARE
00:49:51.822 --> 00:49:53.290
PROPERLY PRICED --
00:49:53.357 --> 00:49:54.825
WHEN WE ASK THE AUTHORITY ABOUT
00:49:54.891 --> 00:49:56.493
ITS DECISION TO GO AGAINST THOSE
00:49:56.560 --> 00:49:57.694
INITIAL DETERMINATIONS OF THE
00:49:57.761 --> 00:49:59.863
AUTHORITY REPEATEDLY REFERENCED
00:49:59.930 --> 00:50:01.732
ISSUES ASSOCIATED WITH --
00:50:01.798 --> 00:50:03.133
AGREEMENTS IN PLACE WITH
00:50:03.200 --> 00:50:04.301
EXTERNAL --
00:50:04.368 --> 00:50:06.169
THIRD PARTIES SUCH AS REAL ROADS --
00:50:06.236 --> 00:50:08.638
THE UNCERTAINTY SURROUNDING THE
00:50:08.705 --> 00:50:11.708
LOCATION AND A RELOCATION.
00:50:11.775 --> 00:50:13.844
OF UTILITIES SUCH AS GAS LINES
00:50:13.910 --> 00:50:15.812
AND TELECOMMUNICATIONS.
00:50:15.879 --> 00:50:18.115
AND ADDITIONAL NOTABLY --
00:50:18.181 --> 00:50:20.484
THE FAILURE OF THE AUTHORITY TO
00:50:20.550 --> 00:50:20.784
ACQUIRE --
00:50:20.851 --> 00:50:21.651
SAYS --
00:50:21.718 --> 00:50:22.519
SUFFICIENT LAND ON WHICH TO
00:50:22.586 --> 00:50:24.654
CONSTRUCT THE PROJECT BEFORE IT
00:50:24.721 --> 00:50:28.225
EXECUTED THOSE CONTRACTS.
00:50:28.291 --> 00:50:30.827
ON A GLOBAL LEVEL. TO DATE WE'VE
00:50:30.894 --> 00:50:32.696
WE'VE IDENTIFIED THAT A PROBABLY
00:50:32.763 --> 00:50:34.264
60% OF THE SIX HUNDRED MILLION --
00:50:34.331 --> 00:50:35.766
AND EXECUTE CHANGE ORDERS ARE
00:50:35.832 --> 00:50:37.434
DIRECTLY RELATED TO THOSE THOSE
00:50:37.501 --> 00:50:38.602
RISK AREAS.
00:50:38.668 --> 00:50:40.537
OF WHICH THE AUTHORITIES AWARE
00:50:40.604 --> 00:50:43.607
WHEN EXECUTED AS CONTRACTS ALSO
00:50:43.673 --> 00:50:44.841
ONE POINT FIVE BILLION DOLLARS
00:50:44.908 --> 00:50:46.610
AS OF NOW IN EXPECTED FUTURE
00:50:46.676 --> 00:50:47.611
CONTRACT CHANGES.
00:50:47.677 --> 00:50:49.579
AND PRICE ONLY 70% OF THOSE
00:50:49.646 --> 00:50:50.547
FUTURE CHANGES ARE TREATABLE
00:50:50.614 --> 00:50:51.982
THESE RISK AREAS.
00:50:52.048 --> 00:50:53.750
SO -- THESE
00:50:53.817 --> 00:50:55.719
THESE SCUM SMALL COLLECTION OF
00:50:55.786 --> 00:50:56.920
CAUSES HAVE REPRESENTED A YOU
00:50:56.987 --> 00:50:58.789
KNOW AN OUTSIZED IMPACT ON ON
00:50:58.855 --> 00:51:02.759
COST OVERRUNS TODAY.
00:51:02.826 --> 00:51:04.327
WITH RESPECT --
00:51:04.394 --> 00:51:06.596
TO THE FUTURE A RISK AND THAT
00:51:06.663 --> 00:51:07.864
FUTURE EXPECTED COSTS --
00:51:07.931 --> 00:51:09.065
THE THIRTIES ALSO IN EXPECTING
00:51:09.132 --> 00:51:10.667
INCREASED TIME DELAYS.
00:51:10.734 --> 00:51:12.369
PUSHING BACK EXPECTED COMPLETION
00:51:12.436 --> 00:51:14.704
FROM TWENTY TWENTY TO THE SPRING
00:51:14.771 --> 00:51:16.273
OF TWENTY TWENTY TWO GUYS OF THE
00:51:16.339 --> 00:51:18.108
STATE ARE ALLUDED TO THERE IS A
00:51:18.175 --> 00:51:20.944
FEDERAL DEADLINE OF DECEMBER OF
00:51:21.011 --> 00:51:21.578
TWENTY TWENTY TWO TO COMPLETE.
00:51:21.645 --> 00:51:22.412
THESE THREE CONSTRUCTION
00:51:22.479 --> 00:51:24.448
PROJECTS AS WELL AS A FOURTH
00:51:24.514 --> 00:51:25.849
PROJECT THAT WILL ACTUALLY LATE
00:51:25.916 --> 00:51:27.184
TRACK ACROSS THE CIVIL WORKS
00:51:27.250 --> 00:51:28.652
THAT ARE BEING CONSTRUCTED NOW.
00:51:28.718 --> 00:51:29.753
SO -- BASED
00:51:29.820 --> 00:51:30.921
ON OUR ANALYSIS OF THE
00:51:30.987 --> 00:51:32.289
AUTHORITIES AVERAGE PROGRESS TO
00:51:32.355 --> 00:51:34.758
DATE COMBINED ACROSS THESE THREE
00:51:34.825 --> 00:51:35.592
CONSTRUCTION CONTRACTS IT WILL
00:51:35.659 --> 00:51:36.259
NEED.
00:51:36.326 --> 00:51:38.395
TO DOUBLE THE RATE OF ITS
00:51:38.462 --> 00:51:41.798
CONSTRUCTION BETWEEN NOW. TO
00:51:41.865 --> 00:51:42.599
THAT END WE MADE SEVERAL
00:51:42.666 --> 00:51:44.334
RECOMMENDATIONS TO THE AUTHORITY
00:51:44.401 --> 00:51:45.602
SURROUNDING --
00:51:45.669 --> 00:51:47.537
ITS CURRENT AND FUTURE CONTRACT
00:51:47.604 --> 00:51:48.104
MANAGEMENT OF THESE TYPES OF
00:51:48.171 --> 00:51:48.872
CONTRACTS.
00:51:48.939 --> 00:51:50.373
WITH RESPECT TO ITS USE OF ITS
00:51:50.440 --> 00:51:51.875
OVERSIGHT FIRMS --
00:51:51.942 --> 00:51:53.710
TO HOLD THE CONTRACTORS
00:51:53.777 --> 00:51:54.811
ACCOUNTABLE FOR CONTRACT TERMS
00:51:54.878 --> 00:51:57.414
IN A RECOMMENDATION THAT IF YOU
00:51:57.481 --> 00:51:58.615
THORLEY.
00:51:58.682 --> 00:52:00.550
SIDES TO DIVERGE FROM THE ADVICE
00:52:00.617 --> 00:52:01.184
OF HIS OVERSIGHT FROM TOO AGAIN
00:52:01.251 --> 00:52:02.786
IT EMPLOYS TO HELP IT KEEP THE
00:52:02.853 --> 00:52:04.688
CONTRACTOR --
00:52:04.754 --> 00:52:06.356
TO THE STATE LETTER OF THE OF
00:52:06.423 --> 00:52:07.090
THE AGREEMENT.
00:52:07.157 --> 00:52:09.292
IT NEEDS.
00:52:09.359 --> 00:52:09.893
TO STOCKTON JUSTIFICATION FOR
00:52:09.960 --> 00:52:10.727
DOING THAT WE FOUND THAT WHEN
00:52:10.794 --> 00:52:12.762
THE AUTHORITY HAD HAD DIVERGE
00:52:12.829 --> 00:52:14.097
FROM FROM THAT OTHER THOSE
00:52:14.164 --> 00:52:15.499
RECOMMENDATIONS --
00:52:15.565 --> 00:52:17.300
IT HAD NOT DOCUMENTED IT'S
00:52:17.367 --> 00:52:18.835
RATIONALE FOR DOING SO.
00:52:18.902 --> 00:52:21.104
INCLUDING WHY IT OCCASIONALLY --
00:52:21.171 --> 00:52:22.739
SET A SETTLED ON A HIGHER DOLLAR
00:52:22.806 --> 00:52:25.008
AMOUNT AND THE OVERSIGHT FROM
00:52:25.075 --> 00:52:26.910
RECOMMENDED.
00:52:26.977 --> 00:52:27.544
WE ALSO --
00:52:27.611 --> 00:52:28.044
MAKE RECOMMENDATIONS THE
00:52:28.111 --> 00:52:29.846
AUTHORITY TO IMPROVE THE
00:52:29.913 --> 00:52:31.181
CONSISTENCY AREN'T SURE THE
00:52:31.248 --> 00:52:32.549
CONSISTENCY OF THE OVERSIGHT
00:52:32.616 --> 00:52:33.683
FIRMS.
00:52:33.750 --> 00:52:34.918
RISK PROJECTIONS THE OTHER SIDE
00:52:34.985 --> 00:52:35.952
FIRMS THEMSELVES ARE THE
00:52:36.019 --> 00:52:37.387
COMPILER RESOURCE FOR FUTURE
00:52:37.454 --> 00:52:38.488
RISKS ASSOCIATED EACH OF THE
00:52:38.555 --> 00:52:39.856
THREE CONTRACTS.
00:52:39.923 --> 00:52:40.924
AND THAT IS THE THE SOURCE OF
00:52:40.991 --> 00:52:42.425
THE ANALYSIS THAT WE CONDUCTED
00:52:42.492 --> 00:52:44.294
ON FUTURE COSTS AND THEY'RE
00:52:44.361 --> 00:52:46.563
THEY'RE LIKELY CAUSES --
00:52:46.630 --> 00:52:49.199
AND SO THE THE RECOMMENDATION RE
00:52:49.266 --> 00:52:50.634
DESPERATE FIRMS ACROSS THREE
00:52:50.700 --> 00:52:52.102
SEPARATE CONTRACTS ARE ARE
00:52:52.168 --> 00:52:54.804
CONSISTENTLY ACCURATE WE AND
00:52:54.871 --> 00:52:56.973
TIMELY EVALUATING ALL THE KNOWN
00:52:57.040 --> 00:52:59.009
RISKS.
00:52:59.075 --> 00:52:59.843
FINALLY IS THE IS A C. R.
00:52:59.910 --> 00:53:01.144
ALLUDED TO WITH RESPECT TO THE
00:53:01.211 --> 00:53:03.079
THE FUTURE CHALLENGES FOR THE
00:53:03.146 --> 00:53:04.314
CENTRAL VALLEY.
00:53:04.381 --> 00:53:05.715
WE FEEL STRONGLY THAT THE
00:53:05.782 --> 00:53:07.918
AUTHORITY HAS NAVIGATION TO TO
00:53:07.984 --> 00:53:09.252
REPORT TO THE LEGISLATURE.
00:53:09.319 --> 00:53:10.620
MUCH MORE FREQUENTLY ABOUT THE
00:53:10.687 --> 00:53:12.822
ACTUAL TO DATE STATUS OF THESE
00:53:12.889 --> 00:53:13.957
PROJECTS --
00:53:14.024 --> 00:53:15.125
IN TERMS OF WHERE THEY ARE WHERE
00:53:15.191 --> 00:53:16.326
THEY NEED TO BE AND SO WE MADE A
00:53:16.393 --> 00:53:17.394
RECOMMENDATION ABOUT HAPPEN ON A
00:53:17.460 --> 00:53:18.795
QUARTERLY BASIS.
00:53:18.862 --> 00:53:19.896
AND WE WERE FAIRLY PRESCRIPTIVE
00:53:19.963 --> 00:53:22.566
IN THE THE METHODOLOGY THAT THE
00:53:22.632 --> 00:53:23.833
EMPLOYEE SHOULD OF IT THAT THE
00:53:23.900 --> 00:53:27.037
AUTHORITY SHOULD EMPLOY.
00:53:27.103 --> 00:53:28.838
IN REPORTING TO THE LEGISLATURE.
00:53:28.905 --> 00:53:30.807
WE ALSO TOOK A LOOK MORE
00:53:30.874 --> 00:53:32.776
GLOBALLY AT THE AUTHORITIES
00:53:32.842 --> 00:53:34.244
CONTRACT MANAGEMENT --
00:53:34.311 --> 00:53:36.179
THE THIRTY APART FROM ITS ITS
00:53:36.246 --> 00:53:38.048
CONSTRUCTION CONTRACTS OPERATES --
00:53:38.114 --> 00:53:39.282
YOU KNOW MORE THAN A HUNDRED
00:53:39.349 --> 00:53:41.151
OTHER CONTRACTS FOR SERVICES
00:53:41.217 --> 00:53:42.586
SUCH AS ENVIRONMENTAL
00:53:42.652 --> 00:53:44.421
ENGINEERING PLANNING --
00:53:44.487 --> 00:53:45.555
THE CONSTRUCTION OVERSIGHT THAT
00:53:45.622 --> 00:53:47.490
I MENTIONED FINANCIAL ADVISORY
00:53:47.557 --> 00:53:49.759
AND A LARGE CONSULTING CONTRACT
00:53:49.826 --> 00:53:50.961
WITH AN IDIOT REFERS TO AS THE
00:53:51.027 --> 00:53:54.931
RAIL DELIVERY PARTNER THE RDP --
00:53:54.998 --> 00:53:56.066
AS THE STATE AUDITOR SUMMARIZING
00:53:56.132 --> 00:53:56.900
HAS BEEN MENTIONED IN ITS
00:53:56.967 --> 00:53:58.168
OPENING STATEMENTS THE
00:53:58.234 --> 00:53:58.969
AUTHORITIES HAD A DOCUMENTED
00:53:59.035 --> 00:54:00.904
HISTORY OF CHALLENGES RESPECT TO
00:54:00.971 --> 00:54:03.440
ITS CONTRACT MANAGEMENT --
00:54:03.506 --> 00:54:06.009
ARE OUR MOST OUR PRIOR OUT IN
00:54:06.076 --> 00:54:06.543
TWENTY TWELVE AS WELL AS
00:54:06.610 --> 00:54:09.512
INTERNAL LOT OF SENIOR THIRTY IN.
00:54:09.579 --> 00:54:10.146
TWENTY FIFTEEN TO TWENTY SIXTEEN
00:54:10.213 --> 00:54:10.814
NOTICING FORGET DEFICIENCIES IN
00:54:10.880 --> 00:54:12.849
THE CONTRACT MANAGEMENT AT THE
00:54:12.916 --> 00:54:14.651
AUTHORITY.
00:54:14.718 --> 00:54:15.719
IN RESPONSE TO ITS INTERNAL
00:54:15.785 --> 00:54:16.786
AUDITS OF THE MOST RECENT WAS IN
00:54:16.853 --> 00:54:18.722
SPRING OF TWENTY SIXTEEN THE
00:54:18.788 --> 00:54:20.290
AUTHORITY IMPLEMENTED --
00:54:20.357 --> 00:54:22.959
BASICALLY COMPREHENSIVE IT'S
00:54:23.026 --> 00:54:24.894
POLICIES AND PROCEDURES RELATED
00:54:24.961 --> 00:54:25.495
TO CONTRACT MANAGEMENT OF ITS
00:54:25.562 --> 00:54:26.963
CONTRACTS.
00:54:27.030 --> 00:54:27.964
IN DOING SO IT CLEARLY
00:54:28.031 --> 00:54:29.499
DELINEATED RESPONSIBILITIES FOR
00:54:29.566 --> 00:54:31.434
THE STATE EMPLOYEES THAT OVERSEE
00:54:31.501 --> 00:54:33.136
THOSE CONTRACTS RELATED --
00:54:33.203 --> 00:54:34.704
TO AT THE END ENSURING THAT
00:54:34.771 --> 00:54:36.172
INVOICE COSTS ARE APPROPRIATE
00:54:36.239 --> 00:54:38.508
THAT A CONTRACTOR WORK IS TIMELY
00:54:38.575 --> 00:54:40.477
OF QUALITY OF THE PARTY REQUIRED.
00:54:40.543 --> 00:54:45.315
AND THAT ANY COST OVER RUNS ARE --
00:54:45.382 --> 00:54:46.983
IT BASICALLY TO DETERMINE THAT
00:54:47.050 --> 00:54:48.918
THE THE MARRIAGE AND
00:54:48.985 --> 00:54:49.753
JUSTIFICATION FOR COST OVERRUNS
00:54:49.819 --> 00:54:51.354
THAT THAT BEN MANIFEST
00:54:51.421 --> 00:54:52.455
THEMSELVES IN THE FORM OF
00:54:52.522 --> 00:54:53.657
CONTRACT AMENDMENTS OF WHICH
00:54:53.723 --> 00:54:53.923
THERE VAN.
00:54:53.990 --> 00:54:56.159
MANY -- WE
00:54:56.226 --> 00:54:57.394
BEGAN BY TAKING A LOOK AT THOSE
00:54:57.460 --> 00:54:57.894
THOSE --
00:54:57.961 --> 00:54:59.362
POLICIES AND PROCEDURES FROM A
00:54:59.429 --> 00:55:00.397
BEST PRACTICE PERSPECTIVE AND
00:55:00.463 --> 00:55:01.064
FOUND THAT THEY WERE CONSISTENT
00:55:01.131 --> 00:55:02.565
WITH WITH THE CRITERIA THAT
00:55:02.632 --> 00:55:04.401
EXISTED INCLUDING THAT IN THE
00:55:04.467 --> 00:55:05.769
STATE CONTRACTING MANUAL.
00:55:05.835 --> 00:55:07.270
AND WE ALSO FIND IT THEY WENT
00:55:07.337 --> 00:55:09.072
WELL BEYOND WHAT WAS IN THE
00:55:09.139 --> 00:55:10.407
STATE CONTACT MANUAL BY NOT ONLY
00:55:10.473 --> 00:55:11.941
DELINEATING THE SPECIFIC.
00:55:12.008 --> 00:55:13.743
ROLES RESPONSIBILITIES AND
00:55:13.810 --> 00:55:15.445
PROCESSES BY WHICH THE COUNTRY
00:55:15.512 --> 00:55:16.780
MANAGERS ARE CONDUCT THEIR WORK
00:55:16.846 --> 00:55:18.148
BUT ALSO BY REQUIRING A HIGH
00:55:18.214 --> 00:55:20.016
LEVEL OF DOCUMENTATION FROM THIS
00:55:20.083 --> 00:55:22.252
CONTRACT MANAGERS. TO PROVIDE A
00:55:22.318 --> 00:55:23.753
RECORD OF THE DETERMINATIONS
00:55:23.820 --> 00:55:26.589
THAT THEY HAVE MADE ABOUT
00:55:26.656 --> 00:55:27.857
CONTRACTORS PERFORMANCE.
00:55:27.924 --> 00:55:29.926
UNFORTUNATELY WHEN WE ARE TESTED
00:55:29.993 --> 00:55:30.994
NINE CONTRACT WITH A COMBINED
00:55:31.061 --> 00:55:32.762
VALUE OF ONE POINT THREE BILLION
00:55:32.829 --> 00:55:34.364
DOLLARS WE FOUND AT THE THIRTY
00:55:34.431 --> 00:55:35.799
WAS A VERY RARELY.
00:55:35.865 --> 00:55:36.366
HAVE THE THIRTIES CONTRACT
00:55:36.433 --> 00:55:37.534
MANAGERS WERE VERY RARELY
00:55:37.600 --> 00:55:38.835
FOLLOWING THOSE POLICIES AND
00:55:38.902 --> 00:55:39.969
PROCEDURES INSPECTOR PERFORMING
00:55:40.036 --> 00:55:43.006
IN DOCUMENTING QUALITY CONTROL
00:55:43.073 --> 00:55:45.408
REVIEWS.
00:55:45.475 --> 00:55:46.276
AMENDMENT JUSTIFICATION REVIEWS
00:55:46.342 --> 00:55:47.944
AND THE LIKE WE THE ONE AREA WE
00:55:48.011 --> 00:55:49.379
FOUND.
00:55:49.446 --> 00:55:50.714
GENERAL COMPLIANCE WAS OR WAS
00:55:50.780 --> 00:55:51.815
WITH A AN ADMINISTRATIVE
00:55:51.881 --> 00:55:53.550
REQUIREMENT THAT CONTRACT
00:55:53.616 --> 00:55:55.051
MANAGERS --
00:55:55.118 --> 00:55:56.252
BASICALLY COMPLETE AND SIGN A
00:55:56.319 --> 00:55:57.954
CHECKLIST ASSOCIATED WITH EACH
00:55:58.021 --> 00:55:58.988
INVOICE SAYING THAT THEY'RE
00:55:59.055 --> 00:56:00.123
TESTING TO THE INVOICES
00:56:00.190 --> 00:56:01.825
COMPLETENESS AND ACCURACY AND
00:56:01.891 --> 00:56:03.393
ALLOW ABILITY OF COSTS.
00:56:03.460 --> 00:56:04.961
HOWEVER IN MOST CASES WHEN WE
00:56:05.028 --> 00:56:07.163
ASK THOSE CONTACT MANAGERS FOR
00:56:07.230 --> 00:56:08.398
DOCUMENTATION RELATED TO HOW
00:56:08.465 --> 00:56:09.999
THEY DETERMINED THAT THE COSTS
00:56:10.066 --> 00:56:11.434
WERE ALLOWABLE THEY WERE NUMBER
00:56:11.501 --> 00:56:12.702
UNABLE TO PROVIDE THOSE.
00:56:12.769 --> 00:56:13.903
SO IN THAT INSTANCE WE MADE A
00:56:13.970 --> 00:56:14.838
RECOMMENDATION OF THE AUTHORITY
00:56:14.904 --> 00:56:16.272
STRENGTHENED ITS POLICIES AND
00:56:16.339 --> 00:56:17.974
PROCEDURES TO REQUIRE CONTRACT
00:56:18.041 --> 00:56:19.109
MANAGERS.
00:56:19.175 --> 00:56:20.777
TO RETAIN AND UPON REQUEST
00:56:20.844 --> 00:56:22.212
PROVIDE.
00:56:22.278 --> 00:56:23.847
THAT DOCUMENTATION TO SHOW THAT
00:56:23.913 --> 00:56:25.782
THESE COMPLEX INVOICES ARE IN
00:56:25.849 --> 00:56:29.219
FACT ACCURATE COMPLETE --
00:56:29.285 --> 00:56:30.754
THAT IS A MENTION IS THE ONLY
00:56:30.820 --> 00:56:31.588
RECOMMENDATION WE HAD WITH
00:56:31.654 --> 00:56:32.589
RESPECT TO THE POLICIES AND
00:56:32.655 --> 00:56:33.623
PROCEDURES AGAIN WE FOUND OUT
00:56:33.690 --> 00:56:35.125
THEY WERE FAIRLY STRONG ISSUES
00:56:35.191 --> 00:56:36.860
WITH IT WITH COMPLIANCE.
00:56:36.926 --> 00:56:38.361
SO WE MADE A SUITE OF
00:56:38.428 --> 00:56:39.896
RECOMMENDATIONS INTENDED TO
00:56:39.963 --> 00:56:41.231
INCREASE THE THE PROFESSIONALISM
00:56:41.297 --> 00:56:42.932
AND THE OVERSIGHT OF CONTRACT
00:56:42.999 --> 00:56:44.300
MANAGEMENT ROLE AT THE AUTHORITY.
00:56:44.367 --> 00:56:45.468
THOSE INCLUDE BUT ARE NOT
00:56:45.535 --> 00:56:47.070
LIMITED --
00:56:47.137 --> 00:56:48.772
TO REPLACING --
00:56:48.838 --> 00:56:50.006
OR I SHOULD SAY.
00:56:50.073 --> 00:56:51.141
DEVELOP DEVELOPING A PROGRAM BY
00:56:51.207 --> 00:56:53.009
WHICH TO RECRUIT AND HIRE FULL
00:56:53.076 --> 00:56:54.444
TIME CONTRACT MANAGERS FOR
00:56:54.511 --> 00:56:55.478
PROFESSIONAL QUALIFIED IN WHOSE
00:56:55.545 --> 00:56:56.913
DUTY STATEMENTS REFLECT THE
00:56:56.980 --> 00:56:58.548
RESPONSIBILITIES FOR CONTRACT
00:56:58.615 --> 00:56:59.315
MANAGEMENT.
00:56:59.382 --> 00:57:00.650
WE FOUND THAT --
00:57:00.717 --> 00:57:01.451
ALMOST NONE OF THE CONTRACT
00:57:01.518 --> 00:57:02.585
MANAGERS WE REVIEWED HAD ANY
00:57:02.652 --> 00:57:03.219
MENTION OF THOSE
00:57:03.286 --> 00:57:04.554
RESPONSIBILITIES IN THEIR DUTY
00:57:04.621 --> 00:57:05.789
STATEMENTS.
00:57:05.855 --> 00:57:07.290
WE ALSO MADE A RECOMMENDATION AT
00:57:07.357 --> 00:57:09.459
THE THOSE --
00:57:09.526 --> 00:57:10.493
THOSE CONTACT MANAGERS BE HELD
00:57:10.560 --> 00:57:12.262
ACCOUNTABLE BY THEIR SUPERVISORS
00:57:12.328 --> 00:57:13.863
WHO ARE NOMINALLY RESPONSIBLE
00:57:13.930 --> 00:57:14.964
FOR DOING SO.
00:57:15.031 --> 00:57:16.432
IN THE EXISTING POLICIES AND
00:57:16.499 --> 00:57:17.500
PROCEDURES BUT WE FOUND THAT
00:57:17.567 --> 00:57:18.701
THOSE CONTRACT MANAGERS
00:57:18.768 --> 00:57:19.803
SUPERVISORS DO NOT OUT WE'RE NOT
00:57:19.869 --> 00:57:20.703
ALWAYS EVEN TRAINED IN THE
00:57:20.770 --> 00:57:22.539
CONTRACT MANAGEMENT POLICIES AND
00:57:22.605 --> 00:57:24.040
PROCEDURES THEMSELVES.
00:57:24.107 --> 00:57:25.108
FINALLY THE STATE AUDITOR
00:57:25.175 --> 00:57:26.442
ALLUDED TO WE FOUND SOME ISSUES
00:57:26.509 --> 00:57:27.911
WITH RESPECT TO THE OVERSIGHT OF
00:57:27.977 --> 00:57:29.512
CONTENT MANAGEMENT INTERNALLY AS
00:57:29.579 --> 00:57:30.947
PART OF THE REVISION TO ITS
00:57:31.014 --> 00:57:35.151
POLICIES AND PROCEDURES IN.
00:57:35.218 --> 00:57:35.785
TWENTY SIXTEEN TWENTY SEVENTEEN
00:57:35.852 --> 00:57:37.554
THE AUTHORITY ALSO CREATED A
00:57:37.620 --> 00:57:38.888
CONTRACT OR CONTENT MANAGEMENT
00:57:38.955 --> 00:57:40.390
OVERSIGHT GROUP --
00:57:40.456 --> 00:57:41.558
THAT WOULD BE RESPONSIBLE FOR
00:57:41.624 --> 00:57:42.559
PERIODIC REVIEWS OF CONTRACT
00:57:42.625 --> 00:57:44.894
MANAGERS COMPLIANCE WITH THE
00:57:44.961 --> 00:57:46.229
REQUIRED POLICIES AND PROCEDURES.
00:57:46.296 --> 00:57:47.263
HOWEVER WE FOUND THAT THAT THAT
00:57:47.330 --> 00:57:49.632
COULD BE DONE --
00:57:49.699 --> 00:57:50.233
VERY LITTLE BASICALLY NEXT TO
00:57:50.300 --> 00:57:52.535
NOTHING WITH RESPECT TO ACTUALLY
00:57:52.602 --> 00:57:53.837
CONDUCTING THE US REVIEWS.
00:57:53.903 --> 00:57:55.705
I HAD THEY DONE THE THE WORK
00:57:55.772 --> 00:57:56.472
THAT WAS LAID OUT FOR THEM IN
00:57:56.539 --> 00:57:57.640
THEIR POLICIES PROCEDURES IS
00:57:57.707 --> 00:57:58.575
VERY LIKELY THEY WOULD HAVE HIT
00:57:58.641 --> 00:58:00.844
ON THE THE THE SHORTCOMINGS THAT
00:58:00.910 --> 00:58:03.213
WE FOUND AT AN EARLIER DATE --
00:58:03.279 --> 00:58:05.849
AT AS IT STANDS CURRENTLY THAT
00:58:05.915 --> 00:58:06.416
OVERSIGHT GROUP IS STAFFED
00:58:06.482 --> 00:58:09.886
ENTIRELY BY OUTSIDE CONSULTANTS --
00:58:09.953 --> 00:58:11.654
IN ADDITION TO THAT POTENTIALLY
00:58:11.721 --> 00:58:13.223
CREATING AN ACCOUNTABILITY ISSUE
00:58:13.289 --> 00:58:14.524
WE ALSO FOUND IS THE IS THE
00:58:14.591 --> 00:58:15.191
STATE AUDITOR LEAD TO THAT THAT
00:58:15.258 --> 00:58:15.825
MIGHT.
00:58:15.892 --> 00:58:17.493
INTRODUCE POTENTIAL CONFLICTS OF
00:58:17.560 --> 00:58:18.995
INTEREST AYE IN INSTANCES WHERE
00:58:19.062 --> 00:58:21.231
CONTRACT MANAGERS ARE IMPROPERLY
00:58:21.297 --> 00:58:23.399
DEFERRING TO TO CONTRACTED THIRD
00:58:23.466 --> 00:58:24.634
PARTIES --
00:58:24.701 --> 00:58:25.668
WE WILL BE FELT IT WAS
00:58:25.735 --> 00:58:27.637
INAPPROPRIATE FOR THE OVERSIGHT
00:58:27.704 --> 00:58:30.039
FUNCTION TO ALSO BE FILL BOUNCE
00:58:30.106 --> 00:58:31.608
OUTSIDE CONTRACTORS.
00:58:31.674 --> 00:58:32.609
SO THAT SUMMARIZES OUR
00:58:32.675 --> 00:58:33.276
RECOMMENDATIONS WITH RESPECT TO
00:58:33.343 --> 00:58:35.778
THE OTHER CONTRACT MANAGEMENT OF
00:58:35.845 --> 00:58:37.380
OF ALL OF THE CONTRACTS.
00:58:37.447 --> 00:58:38.982
OUTSIDE OF THE OF THE THE
00:58:39.048 --> 00:58:40.316
CONSTRUCTION CONTRACTS.
00:58:40.383 --> 00:58:41.818
I'LL BRIEFLY TO SUMMARIZE SOME
00:58:41.885 --> 00:58:43.486
OF THE OTHER AREAS WE WE
00:58:43.553 --> 00:58:44.954
DISCUSSED IN OUR REPORT CHAPTER.
00:58:45.021 --> 00:58:46.489
THREE WITH RESPECT TO THE
00:58:46.556 --> 00:58:47.557
SUSTAINABILITY POLICY THAT THE
00:58:47.624 --> 00:58:49.893
AUTHORITY HAS PUT IN PLACE --
00:58:49.959 --> 00:58:51.461
THE STATE AUDITOR --
00:58:51.527 --> 00:58:53.696
YOU KNOW CORRECTLY ASIDE ARE
00:58:53.763 --> 00:58:55.331
CORRECTLY SUMMARIZED OUR EXPERTS
00:58:55.398 --> 00:58:56.699
ASSESSMENT THAT THE POLICY
00:58:56.766 --> 00:58:57.867
ITSELF CONTAINS.
00:58:57.934 --> 00:58:59.035
LAUDABLE GOALS THAT ARE
00:58:59.102 --> 00:59:00.136
GENERALLY CONSISTENT WITH BEST
00:59:00.203 --> 00:59:02.171
PRACTICES HOWEVER WE DID FIND
00:59:02.238 --> 00:59:03.873
ROOM FOR IMPROVEMENT AND IN
00:59:03.940 --> 00:59:05.675
TERMS OF INCREASED EMPHASIS.
00:59:05.742 --> 00:59:07.610
AND AND TO TRACKING AND ANALYSIS
00:59:07.677 --> 00:59:08.945
WITH RESPECT TO THE IMPACTS OF
00:59:09.012 --> 00:59:11.180
ONGOING CONSTRUCTION SO WE MADE.
00:59:11.247 --> 00:59:12.715
SOME RECOMMENDATIONS THAT ARE
00:59:12.782 --> 00:59:14.584
PRE TAILORED TO THE AUTHORITY IN
00:59:14.651 --> 00:59:16.786
TERMS OF HOW THEY SHOULD --
00:59:16.853 --> 00:59:19.289
INCREASED EMPHASIS ON THAT
00:59:19.355 --> 00:59:20.590
CONSTRUCTION WILL BE.
00:59:20.657 --> 00:59:23.459
THE MAIN BUSINESS OF HIGH SPEED
00:59:23.526 --> 00:59:24.894
RAIL FOR THE FORESEEABLE FUTURE --
00:59:24.961 --> 00:59:26.696
WITH RESPECT TO THE SMALL
00:59:26.763 --> 00:59:29.165
BUSINESS UTILIZATION AGAIN AS
00:59:29.232 --> 00:59:30.667
THE STATE AUDITOR ALLUDED.
00:59:30.733 --> 00:59:31.567
TO THE WE FOUND THAT THE
00:59:31.634 --> 00:59:33.169
AUTHORITY HAD --
00:59:33.236 --> 00:59:34.604
JUSTIFICATION AND AND
00:59:34.671 --> 00:59:36.039
APPROPRIATE DOCUMENTATION TO
00:59:36.105 --> 00:59:37.607
SUPPORT GENTLY THAT THE THE
00:59:37.674 --> 00:59:39.509
UTILIZATION RATES IT REPORTS ARE
00:59:39.575 --> 00:59:41.044
ACCURATE AND SUPPORTED BY --
00:59:41.110 --> 00:59:42.478
CONTRACTED INVOICES.
00:59:42.545 --> 00:59:43.546
HOWEVER WE DETERMINE IT THERE
00:59:43.613 --> 00:59:44.847
ABOUT NINE HUNDRED AND THIRTY
00:59:44.914 --> 00:59:45.949
MILLION DOLLARS IN CONTACTED
00:59:46.015 --> 00:59:47.417
VALUE THAT DO NOT SHOW UP ON THE
00:59:47.483 --> 00:59:48.818
AUTHORITIES UTILIZATION REPORTS
00:59:48.885 --> 00:59:50.119
OR CALCULATION.
00:59:50.186 --> 00:59:51.854
AND THE THIRTY HAD SOME SOME
00:59:51.921 --> 00:59:52.722
REASONS WHY THAT MIGHT BE THE
00:59:52.789 --> 00:59:55.024
CASE --
00:59:55.091 --> 00:59:55.692
THEY'VE ALLUDED TO GUIDANCE FROM
00:59:55.758 --> 00:59:56.793
FROM THE DEPARTMENT GENERAL
00:59:56.859 --> 00:59:59.295
SERVICES THAT NAY DIRECT STATES
00:59:59.362 --> 01:00:00.830
TO OMIT.
01:00:00.897 --> 01:00:01.464
CON ARTISTS ARE STATE AND HE'S
01:00:01.531 --> 01:00:02.966
WILL MAKE CONTRACTS WITH PUBLIC
01:00:03.032 --> 01:00:04.567
ENTITIES FROM ITS REPORTING --
01:00:04.634 --> 01:00:06.502
AND THEY ALSO --
01:00:06.569 --> 01:00:12.875
PROVIDED ACE SERIES OF OF SELECT
01:00:12.942 --> 01:00:14.577
TASKS THAT IT WOULD BE
01:00:14.644 --> 01:00:16.079
UNREALISTIC TO HOLD.
01:00:16.145 --> 01:00:16.646
TO USING.
01:00:16.713 --> 01:00:20.283
THE 30% UTILIZATION REQUIREMENT.
01:00:20.350 --> 01:00:21.651
SO IN THE INTEREST OF
01:00:21.718 --> 01:00:22.952
TRANSPARENCY GIVEN THE THE
01:00:23.019 --> 01:00:24.020
PROMISE OF THIS PRODUCT IN A
01:00:24.087 --> 01:00:25.221
LARGE DOLLAR AMOUNT BEING
01:00:25.288 --> 01:00:26.456
CONTRACTED OUT WE MADE A
01:00:26.522 --> 01:00:27.523
RECOMMENDATION THAT THE
01:00:27.590 --> 01:00:28.891
AUTHORITY MAKE ITS REPORTING
01:00:28.958 --> 01:00:30.193
MORE COMPREHENSIVE.
01:00:30.259 --> 01:00:31.160
AND THAT IT --
01:00:31.227 --> 01:00:32.528
IS MORE AGAIN MORE EXPLICIT
01:00:32.595 --> 01:00:33.563
BUNCH JUSTIFICATION FOR THE
01:00:33.629 --> 01:00:35.198
CONTRACT IT DOES CHOOSE TO
01:00:35.264 --> 01:00:38.001
EXEMPT FROM THIS PROGRAMS.
01:00:38.067 --> 01:00:38.534
THAT BE HAPPY TO TAKE ANY
01:00:38.601 --> 01:00:41.104
QUESTIONS OR ALL RIGHT THANK YOU
01:00:41.170 --> 01:00:41.904
VERY MUCH QUESTIONS FROM THE
01:00:41.971 --> 01:00:42.171
COMMITTEE.
01:00:42.238 --> 01:00:46.876
THIS FONG.
01:00:46.943 --> 01:00:47.910
I THINK VERY MUCH THANK YOU FOR
01:00:47.977 --> 01:00:48.544
YOUR WORK --
01:00:48.611 --> 01:00:49.879
IT'S VERY COMPREHENSIVE --
01:00:49.946 --> 01:00:52.448
AS MUCH YOU CAN BE I GUESS WITH
01:00:52.515 --> 01:00:55.451
THE DOCUMENTATION YOU CAN GET --
01:00:55.518 --> 01:00:56.019
I'VE ALWAYS SAID THE ONLY
01:00:56.085 --> 01:00:57.720
PREDICTOR OF FUTURE BEHAVIOR IS
01:00:57.787 --> 01:00:59.288
PAST BEHAVIOR AND KNOWING THAT
01:00:59.355 --> 01:01:01.624
YOU'VE DONE AUDITS IN TWENTY TEN
01:01:01.691 --> 01:01:02.658
AND TWENTY TWELVE AND AS A BEEN
01:01:02.725 --> 01:01:03.960
INTERNAL AUDITS DONE --
01:01:04.027 --> 01:01:05.428
AS WELL --
01:01:05.495 --> 01:01:08.197
AFTER YOUR REVIEW HOW CONCERNED.
01:01:08.264 --> 01:01:09.465
SHOULD THE PUBLIC BE ON YOUR
01:01:09.532 --> 01:01:12.468
FINDINGS.
01:01:12.535 --> 01:01:14.904
I THANK THE THE PUBLIC ON THE
01:01:14.971 --> 01:01:16.039
LEGISLATURE THE STATE A
01:01:16.105 --> 01:01:16.839
CALIFORNIA SHOULD BE VERY
01:01:16.906 --> 01:01:19.108
CONCERNED AS AS I INDICATED IN
01:01:19.175 --> 01:01:20.410
MY OPENING REMARKS --
01:01:20.476 --> 01:01:22.211
AND THE ISSUES WE IDENTIFIED
01:01:22.278 --> 01:01:23.646
BACK IN TWENTY TEN AND AGAIN AND
01:01:23.713 --> 01:01:25.048
AND AND TWENTY TWELVE AND
01:01:25.114 --> 01:01:26.049
CERTAINLY.
01:01:26.115 --> 01:01:27.917
THE AUTHORITIES ONLY OWN
01:01:27.984 --> 01:01:29.252
INTERNAL AUDITORS --
01:01:29.318 --> 01:01:31.287
IDENTIFYING ISSUES WE LOOKED AT
01:01:31.354 --> 01:01:32.255
SOME OF THOSE SOME OF THOSE
01:01:32.321 --> 01:01:33.489
RECOMMENDATIONS AT THE INTERNAL
01:01:33.556 --> 01:01:35.091
AUDITORS --
01:01:35.158 --> 01:01:35.391
HAVE MADE --
01:01:35.458 --> 01:01:37.493
HAVE NOT BEEN OUR
01:01:37.560 --> 01:01:38.728
RECOMMENDATIONS HAVE NOT BEEN
01:01:38.795 --> 01:01:40.430
FULLY IMPLEMENTED SO --
01:01:40.496 --> 01:01:41.330
I THINK--
01:01:41.397 --> 01:01:42.765
THE PUBLIC SHOULD BE VERY
01:01:42.832 --> 01:01:43.533
CONCERNED ABOUT THIS PARTICULAR
01:01:43.599 --> 01:01:44.934
PROJECT AND THOSE
01:01:45.001 --> 01:01:46.969
RECOMMENDATIONS WERE PROPOSED IN
01:01:47.036 --> 01:01:48.104
TWENTY TEN AND TWENTY TWELVE
01:01:48.171 --> 01:01:48.371
CORRECT.
01:01:48.438 --> 01:01:50.406
WELL SIMILAR RECOMMENDATIONS NOT
01:01:50.473 --> 01:01:52.542
EXACT THE EXACT SAME.
01:01:52.608 --> 01:01:54.077
RECOMMENDATIONS BUT CERTAINLY
01:01:54.143 --> 01:01:56.079
THERE ARE SOME ISSUES THAT ARE
01:01:56.145 --> 01:01:58.014
CONSISTENT FROM ONE AUDIT TO THE
01:01:58.081 --> 01:02:00.316
NEXT -- AND
01:02:00.383 --> 01:02:01.684
OF COURSE IT'S IT'S ONE THING TO
01:02:01.751 --> 01:02:03.519
HAVE POLICIES ON PAPER IT'S
01:02:03.586 --> 01:02:04.620
ANOTHER THING THAT TO ACTUALLY
01:02:04.687 --> 01:02:06.456
IMPLEMENT THE POLICIES AS THEY
01:02:06.522 --> 01:02:07.690
SHOULD BE IMPLEMENTED AND
01:02:07.757 --> 01:02:10.393
EXECUTED WOULD YOU CHARACTERIZE
01:02:10.460 --> 01:02:11.427
THESE ISSUES --
01:02:11.494 --> 01:02:13.496
MISMANAGEMENT ISSUES AS SYSTEMIC
01:02:13.563 --> 01:02:14.597
AND STRUCTURAL PROBLEMS WITHIN
01:02:14.664 --> 01:02:17.133
THE AUTHORITY.
01:02:17.200 --> 01:02:18.901
WELL AS AS MISTER IT INDICATED
01:02:18.968 --> 01:02:21.437
AT AFTER THE TWENTY SIXTEEN
01:02:21.504 --> 01:02:23.639
INTERNAL AUDIT THEY DEVELOP SOME
01:02:23.706 --> 01:02:24.240
POLICIES AND PROCEDURES SO WE
01:02:24.307 --> 01:02:25.408
LOOKED AND AS YOU INDICATE
01:02:25.475 --> 01:02:26.876
POLICIES AND PROCEDURES ARE ON
01:02:26.943 --> 01:02:27.510
PAPER.
01:02:27.577 --> 01:02:28.544
THEY'RE ONLY AS GOOD AS THE
01:02:28.611 --> 01:02:30.012
PEOPLE WHO ACTUALLY REQUIRED TO
01:02:30.079 --> 01:02:31.981
IMPLEMENT THEM AND THAT'S WHY WE
01:02:32.048 --> 01:02:33.783
HAD A VARIETY OF RECOMMENDATIONS
01:02:33.850 --> 01:02:35.451
RELATED --
01:02:35.518 --> 01:02:37.520
TO GETTING MORE STATE EMPLOYEES
01:02:37.587 --> 01:02:38.988
SO YOU HAVE THAT INDEPENDENCE --
01:02:39.055 --> 01:02:40.423
ALLOWING THE INTERNAL AUDITOR TO
01:02:40.490 --> 01:02:42.525
DO THEIR THEIR WORK --
01:02:42.592 --> 01:02:43.626
AND THEN.
01:02:43.693 --> 01:02:45.828
REDUCING THE RELIANCE ON
01:02:45.895 --> 01:02:46.963
EXTERNAL EXPERTS I'M YOU
01:02:47.029 --> 01:02:47.997
CERTAINLY NEED EXPERTS IN
01:02:48.064 --> 01:02:49.565
CERTAIN ASPECTS OF THIS
01:02:49.632 --> 01:02:51.400
PARTICULAR PROJECT BUT SOME OF
01:02:51.467 --> 01:02:53.436
THE OVERSIGHT REALLY NEEDS TO BE
01:02:53.503 --> 01:02:55.538
DONE BY OUR STATE EMPLOYEES WHO
01:02:55.605 --> 01:02:57.573
HAVE THE STATE'S BEST INTEREST
01:02:57.640 --> 01:02:57.840
IN MIND.
01:02:57.907 --> 01:02:58.641
SURE.
01:02:58.708 --> 01:02:59.842
LET ME ASK YOU THIS QUESTION
01:02:59.909 --> 01:03:01.644
WITH YOUR EXPERTISE AND YOUR
01:03:01.711 --> 01:03:03.379
EXPERIENCE AND OF COURSE YOUR
01:03:03.446 --> 01:03:04.647
STAFF AND YOURSELF DOING THE
01:03:04.714 --> 01:03:06.182
PREVIOUS I DO YOU HAVE FAITH
01:03:06.249 --> 01:03:08.584
THAT THE ALL THE AUTHORITY WILL
01:03:08.651 --> 01:03:09.752
IMPLEMENT [inaudible]
01:03:09.819 --> 01:03:11.654
THE RECOMMENDATIONS --
01:03:11.721 --> 01:03:13.589
WELL WHAT I HAVE SOME CONCERN I
01:03:13.656 --> 01:03:14.757
MEAN IT'S SPEAKING AS THE STATE
01:03:14.824 --> 01:03:16.459
AUDITOR I THINK THAT THE
01:03:16.526 --> 01:03:17.927
AUTHORITY IN THE PAST HAS
01:03:17.994 --> 01:03:19.495
SUGGESTED THAT THEY'RE GOING TO
01:03:19.562 --> 01:03:20.863
EMBRACE AND IMPLEMENT SOME OF
01:03:20.930 --> 01:03:22.565
OUR RECOMMENDATIONS --
01:03:22.632 --> 01:03:23.633
SOME OF AND SOME OF THOSE CASES
01:03:23.699 --> 01:03:24.534
THEY HAVE IMPLEMENTED
01:03:24.600 --> 01:03:26.302
RECOMMENDATIONS BUT THE REASON I
01:03:26.369 --> 01:03:28.304
HIGHLIGHTED THE ONE RELATED TO
01:03:28.371 --> 01:03:29.472
THEIR WITH.
01:03:29.539 --> 01:03:30.640
THEIR RESPONSE TO US --
01:03:30.706 --> 01:03:31.807
CONCERNING.
01:03:31.874 --> 01:03:34.744
A REGARDING THE STATE EMPLOYEES
01:03:34.810 --> 01:03:36.045
GONNA SUBMIT A B. C. P. AND A
01:03:36.112 --> 01:03:37.180
YEAR AND A HALF FROM NOW OR FOR
01:03:37.246 --> 01:03:39.782
THE TWENTY TWENTY ONE BUDGET.
01:03:39.849 --> 01:03:41.417
I WOULD HAVE HOPED OR WOULD HAVE
01:03:41.484 --> 01:03:43.186
EXPECTED THEM TO WANT TO TRY TO
01:03:43.252 --> 01:03:44.387
GET THAT DONE MORE QUICKLY
01:03:44.453 --> 01:03:45.488
BECAUSE THAT'S AN ISSUE WE
01:03:45.555 --> 01:03:47.490
IDENTIFIED FIVE OR SIX YEARS AGO
01:03:47.557 --> 01:03:49.025
NOW IN FAIRNESS TO THE AUTHORITY
01:03:49.091 --> 01:03:50.159
IN OUR FIRST AUDIT.
01:03:50.226 --> 01:03:51.427
THINGS WERE JUST GETTING UP AND
01:03:51.494 --> 01:03:52.628
RUNNING AND YOU WOULD EXPECT YOU
01:03:52.695 --> 01:03:55.398
WOULD BE RELIANT ON EXTERNAL --
01:03:55.464 --> 01:03:56.999
CONSULTANTS TO ASSIST BUT YOU
01:03:57.066 --> 01:03:59.168
NEED TO TRANSITION THAT THAT.
01:03:59.235 --> 01:04:00.870
KNOWLEDGE AND YOU NEED TO HAVE
01:04:00.937 --> 01:04:02.471
THAT INTERNALLY WITH STATE
01:04:02.538 --> 01:04:04.173
EMPLOYEE SO --
01:04:04.240 --> 01:04:05.808
I DO HAVE SOME CONCERN WITH
01:04:05.875 --> 01:04:07.310
RESPECT --
01:04:07.376 --> 01:04:09.912
TO HOW QUICKLY OR HOW --
01:04:09.979 --> 01:04:11.847
VEHEMENTLY THE AUTHORITY WILL
01:04:11.914 --> 01:04:13.783
IMPLEMENT THE RECOMMENDATIONS --
01:04:13.849 --> 01:04:15.952
A FEW MORE QUESTIONS WHAT DOES
01:04:16.018 --> 01:04:18.888
IT MEAN TO MAYBE --
01:04:18.955 --> 01:04:20.122
A MARKETING.
01:04:20.189 --> 01:04:20.823
COMMENT ON THIS BUT WHAT DOES IT
01:04:20.890 --> 01:04:21.490
MEAN WHEN YOU SAY ON PAGE FORTY
01:04:21.557 --> 01:04:22.158
THREE THAT THERE'S A LACK OF THE
01:04:22.225 --> 01:04:23.593
DOCUMENTATION THAT PREVENTED US
01:04:23.659 --> 01:04:24.894
REACHING CONCLUSIONS ABOUT THE
01:04:24.961 --> 01:04:25.828
QUALITY TIMELINESS.
01:04:25.895 --> 01:04:27.697
ACOSTA WORK PERFORMED UNDER
01:04:27.763 --> 01:04:30.800
THESE CONTRACTS WHAT IS THAT DID
01:04:30.866 --> 01:04:31.434
YOU ASKED FOR INFORMATION THEY
01:04:31.500 --> 01:04:31.934
JUST GONNA PROVIDED --
01:04:32.001 --> 01:04:33.002
THAT'S CORRECT THE THE POLICIES
01:04:33.069 --> 01:04:35.104
AND PROCEDURES ARE VERY EXPLICIT
01:04:35.171 --> 01:04:36.505
IN THE TYPES OF DOCUMENTATION
01:04:36.572 --> 01:04:38.040
CONTRACT MANAGERS NEED TO CREATE
01:04:38.107 --> 01:04:39.008
AND MAINTAIN.
01:04:39.075 --> 01:04:40.509
DEMONSTRATING A RECORD OF
01:04:40.576 --> 01:04:41.811
TRACKING THE TIMELINESS AND
01:04:41.877 --> 01:04:43.179
QUALITY OF WORK AGAINST
01:04:43.246 --> 01:04:45.681
ESTABLISHED CRITERIA AGAINST THE
01:04:45.748 --> 01:04:46.349
CRIMES OF THE CONTRACT
01:04:46.415 --> 01:04:47.450
FUNDAMENTALLY --
01:04:47.516 --> 01:04:48.484
THIS HAS TO DO WITH RESPECT TO
01:04:48.551 --> 01:04:50.353
THE DELIVERABLES OF THE
01:04:50.419 --> 01:04:51.921
CONTRACTOR HAS.
01:04:51.988 --> 01:04:53.122
AGREED TO PROVIDE IN EXCHANGE
01:04:53.189 --> 01:04:54.991
FOR ITS CONTRACTED RATE --
01:04:55.057 --> 01:04:56.259
WE FOUND THAT NONE OF THE
01:04:56.325 --> 01:04:57.960
CONTRACT MANAGERS THAT WE THAT
01:04:58.027 --> 01:04:59.228
WE DID THAT WE TALK TO AS PART
01:04:59.295 --> 01:05:00.930
OF OUR AUDIT MAINTAINED THAT
01:05:00.997 --> 01:05:02.965
DOCUMENTATION --
01:05:03.032 --> 01:05:03.833
AND MANY --
01:05:03.899 --> 01:05:07.036
WE'RE PERFORMING IF THE LITTLE
01:05:07.103 --> 01:05:08.104
THAT WE COULD DISCERN ONE WAY OR
01:05:08.170 --> 01:05:10.306
ANOTHER SO IT PRECLUDED US FROM
01:05:10.373 --> 01:05:11.941
EVALUATING THEIR PROFESSIONAL
01:05:12.008 --> 01:05:13.776
JUDGMENT BECAUSE THAT JUDGMENT
01:05:13.843 --> 01:05:15.111
HAD NOT BANDLEADER DOCUMENTED
01:05:15.177 --> 01:05:15.411
[inaudible]
01:05:15.478 --> 01:05:19.582
AND SEC.
01:05:19.649 --> 01:05:20.483
IT JUST TO TO THE STATE ARTIST
01:05:20.549 --> 01:05:21.484
POINT IN IN KIND OF ADVOCATING
01:05:21.550 --> 01:05:22.551
THAT RESPONSIBILITY FOR
01:05:22.618 --> 01:05:24.053
DOCUMENTATION SEVERAL CONTRACT
01:05:24.120 --> 01:05:25.388
MANAGERS.
01:05:25.454 --> 01:05:26.622
TOLD US AND CERTAINLY THE
01:05:26.689 --> 01:05:28.291
DOCUMENTATION REVIEWED FOR THIS
01:05:28.357 --> 01:05:29.659
OUT THAT THEY WERE IN FACT
01:05:29.725 --> 01:05:31.360
RELYING ON OUTSIDE CONSULTANTS
01:05:31.427 --> 01:05:32.461
TO PERFORM A SUBSTANTIVE
01:05:32.528 --> 01:05:33.696
CONTRACT MANAGEMENT DUTIES FOR
01:05:33.763 --> 01:05:34.630
WHICH THEY ARE ACTUALLY
01:05:34.697 --> 01:05:35.865
RESPONSIBLE SO THAT WAS A KIND
01:05:35.931 --> 01:05:37.800
OF A COMPOUNDING FACTOR OF THE
01:05:37.867 --> 01:05:39.635
LACK OF AUTHORITY.
01:05:39.702 --> 01:05:41.137
DOT A FORTY GENERATED
01:05:41.203 --> 01:05:43.172
DOCUMENTATION FOR US TO EVALUATE
01:05:43.239 --> 01:05:44.940
IN TERMS OF CONTRACTOR WORK.
01:05:45.007 --> 01:05:47.343
AND I JUST A QUICK SEARCH TO THE
01:05:47.410 --> 01:05:48.377
DOCTOR AT THE DOT IT I MEAN THEY
01:05:48.444 --> 01:05:49.345
WERE YOU'VE IDENTIFIED PROBABLY
01:05:49.412 --> 01:05:51.080
CLOSE TO A HUNDRED INSTANCES
01:05:51.147 --> 01:05:53.416
WHERE THERE IS A LOCKET LACK OF
01:05:53.482 --> 01:05:55.418
DOCUMENTATION AND I COULD BE A
01:05:55.484 --> 01:05:57.019
PLUS OR MINUS A LOFT.
01:05:57.086 --> 01:05:59.955
IS THAT COMMON.
01:06:00.022 --> 01:06:01.924
NO THAT'S NOT SOMETHING THAT WE
01:06:01.991 --> 01:06:02.925
TYPICALLY SEE I MEAN
01:06:02.992 --> 01:06:04.527
DOCUMENTATION IS AN ISSUE THAT
01:06:04.593 --> 01:06:05.795
WE IDENTIFIED IN A LOT IN A LOT
01:06:05.861 --> 01:06:07.096
OF AUDITS.
01:06:07.163 --> 01:06:09.699
BUT THE THE SIGNIFICANCE OR THE
01:06:09.765 --> 01:06:11.133
THE NUMBER OF ISSUES THAT WE
01:06:11.200 --> 01:06:12.468
IDENTIFIED IN THIS PARTICULAR
01:06:12.535 --> 01:06:14.937
REPORT AND A NUMBER OF TIMES AS
01:06:15.004 --> 01:06:16.172
I WAS JUST DISCUSSING WITH MR
01:06:16.238 --> 01:06:17.106
WRITER IN ANSWER YOUR QUESTION
01:06:17.173 --> 01:06:17.640
IS.
01:06:17.707 --> 01:06:18.941
OFTEN TIMES WHEN WE WENT TO A
01:06:19.008 --> 01:06:20.543
CONTRACT MANAGER IS SUPPOSED TO
01:06:20.609 --> 01:06:22.078
BE RESPONSIBLE FOR OVERSIGHT
01:06:22.144 --> 01:06:23.245
THAT CONTRACT MANAGER WOULD
01:06:23.312 --> 01:06:24.180
REFER US TO THE ACTUAL
01:06:24.246 --> 01:06:25.314
CONSULTANT.
01:06:25.381 --> 01:06:26.782
UP FOR WHICH HE OR SHE IS
01:06:26.849 --> 01:06:28.084
SUPPOSED TO BE PROVIDING
01:06:28.150 --> 01:06:29.752
OVERSIGHT TO GET THE ANSWERS
01:06:29.819 --> 01:06:32.054
THAT IS NOT STRONG OVERSIGHT --
01:06:32.121 --> 01:06:34.357
ON BEHALF OF THE THE AUTHORITY
01:06:34.423 --> 01:06:36.959
SO THE THE THE NUMBER OF THE
01:06:37.026 --> 01:06:38.894
VOLUME OF INSTANCES IN THIS
01:06:38.961 --> 01:06:40.830
PARTICULAR AUDIT IS IS GREATER
01:06:40.896 --> 01:06:42.798
THAN THAN WHAT WE TYPICALLY SEE
01:06:42.865 --> 01:06:44.166
WHEN WE OUT WE GO OUT AND
01:06:44.233 --> 01:06:45.901
CONDUCT ON AT WORK.
01:06:45.968 --> 01:06:47.269
BY LAST QUESTION YOU AND YOU
01:06:47.336 --> 01:06:47.937
FEEL FREE TO ANSWER THIS ANY WAY
01:06:48.003 --> 01:06:49.772
YOU WANT BUT IF YOU ARE A
01:06:49.839 --> 01:06:50.506
TEACHER AND YOU'RE GIVING A
01:06:50.573 --> 01:06:50.940
GRADE.
01:06:51.006 --> 01:06:53.542
IN TERMS OF THE MANAGEMENT OF
01:06:53.609 --> 01:06:56.345
THE AYE SPIRO HOW ABOUT AN
01:06:56.412 --> 01:06:59.281
INCOMPLETE --
01:06:59.348 --> 01:07:00.683
I I SITE ASKING.
01:07:00.750 --> 01:07:02.017
THAT'S NOT A PASSING GRADE AS I
01:07:02.084 --> 01:07:03.586
INDICATED SOME OF THE CONCERNS
01:07:03.652 --> 01:07:05.521
THAT WE HAVE ARE SIGNIFICANT
01:07:05.588 --> 01:07:06.822
CONCERNS AND THEIR CONCERNS THAT
01:07:06.889 --> 01:07:08.224
HAVE BEEN RAISED BY US IN THE
01:07:08.290 --> 01:07:08.858
PAST.
01:07:08.924 --> 01:07:10.760
AND CERTAINLY BEEN RAISED BY THE
01:07:10.826 --> 01:07:12.695
INTERNAL AUDIT GROUP THE GAO
01:07:12.762 --> 01:07:14.130
CAME IN AND DID SOME AUDIT WORK
01:07:14.196 --> 01:07:15.998
SO IT'S NOT THAT THE AUTHORITY
01:07:16.065 --> 01:07:17.433
AS MISTER PATTERSON INDICATED
01:07:17.500 --> 01:07:18.567
THAT'S NOT THAT THE AUTHORITY
01:07:18.634 --> 01:07:19.835
HASN'T BEEN AWARE OF SOME OF THE
01:07:19.902 --> 01:07:20.836
ISSUES THAT HAVE BEEN IDENTIFIED
01:07:20.903 --> 01:07:21.637
IN AUDITS.
01:07:21.704 --> 01:07:23.372
ALSO WERE AWARE OF SOME OF THE
01:07:23.439 --> 01:07:24.540
ISSUES --
01:07:24.607 --> 01:07:26.208
WITH RESPECT TO LAND ACQUISITION
01:07:26.275 --> 01:07:27.843
IT CETERA WE FOUND SOME OF THAT
01:07:27.910 --> 01:07:29.745
EVIDENCE AT WHERE THEY KNEW SOME
01:07:29.812 --> 01:07:32.248
OF THESE CONCERNS AS FAR BACK AS
01:07:32.314 --> 01:07:32.882
TWENTY THIRTEEN PERHAPS FURTHER
01:07:32.948 --> 01:07:33.749
BACK THAN THAT.
01:07:33.816 --> 01:07:35.451
YET THEY DECIDED TO MOVE FORWARD
01:07:35.518 --> 01:07:36.552
SO -- WE
01:07:36.619 --> 01:07:38.154
REALLY DO HAVE SOME CONCERNS
01:07:38.220 --> 01:07:41.424
ABOUT PAST DECISIONS AND AND
01:07:41.490 --> 01:07:43.192
DECISION MAKING GOING FORWARD IF
01:07:43.259 --> 01:07:44.326
THIS PROJECT IS GOING TO
01:07:44.393 --> 01:07:45.895
CONTINUE AND BE SUCCESSFUL FOR
01:07:45.961 --> 01:07:47.196
THE STATE OF CALIFORNIA.
01:07:47.263 --> 01:07:48.531
THERE REALLY HAS TO BE SOME
01:07:48.597 --> 01:07:49.965
CHANGE HAPPENING AT THE
01:07:50.032 --> 01:07:51.167
AUTHORITY I APPRECIATE YOUR
01:07:51.233 --> 01:07:53.836
CANDOR THANKS VERY MUCH.
01:07:53.903 --> 01:07:57.339
THANK YOU CHAIRMAN FRAZIER.
01:07:57.406 --> 01:07:59.275
THANK YOU MISTER CHAIR IN IN
01:07:59.341 --> 01:08:01.844
YOUR IN YOUR AUDIT IN --
01:08:01.911 --> 01:08:03.679
DID YOU HAVE THE ABILITY --
01:08:03.746 --> 01:08:04.747
TO MEASURE TO SEE IF THE
01:08:04.814 --> 01:08:05.548
MANAGEMENT TEAM WAS EVEN
01:08:05.614 --> 01:08:08.584
QUALIFIED. TO BE IN THIS
01:08:08.651 --> 01:08:11.020
POSITION.
01:08:11.086 --> 01:08:12.588
WITH RESPECT TO THE THE STATE
01:08:12.655 --> 01:08:13.756
APPOINTED CONTRACT MANAGERS WHAT
01:08:13.823 --> 01:08:16.158
WE WHAT WE DID FIND SIR WAS THAT --
01:08:16.225 --> 01:08:18.160
NEITHER THEIR OFFICIAL TITLES
01:08:18.227 --> 01:08:20.529
NOR THEIR POSITION NAMES NOR
01:08:20.596 --> 01:08:21.897
THEIR DUTY STATEMENTS.
01:08:21.964 --> 01:08:23.799
REFLECTED THE TYPES OF
01:08:23.866 --> 01:08:24.800
RESPONSIBILITIES WHICH THEY WERE
01:08:24.867 --> 01:08:26.836
BEING HELD ACCOUNTABLE --
01:08:26.902 --> 01:08:28.771
SO.
01:08:28.838 --> 01:08:31.006
WHERE EVEN IF THEY WERE
01:08:31.073 --> 01:08:33.108
QUALIFIED THEY WOULD WOULD BE?
01:08:33.175 --> 01:08:34.109
QUESTIONABLE HAVE YOU THOUGHT
01:08:34.176 --> 01:08:34.777
ABOUT HOLD ACCOUNTABLE FOR POOR
01:08:34.844 --> 01:08:36.011
PERFORMANCE SO.
01:08:36.078 --> 01:08:37.613
IN OUR RECOMMENDATIONS WE WE
01:08:37.680 --> 01:08:39.181
TARGET THAT SHORTCOMING AND SAY
01:08:39.248 --> 01:08:40.382
YOU KNOW IF THESE IF THESE
01:08:40.449 --> 01:08:41.116
PEOPLE ARE TO BE CONTRACT
01:08:41.183 --> 01:08:41.784
MANAGERS THEY NEED TO BE DOING A
01:08:41.851 --> 01:08:42.084
FULL TIME.
01:08:42.151 --> 01:08:43.953
THEY NEED TO HAVE THAT BE THE
01:08:44.019 --> 01:08:45.254
CLEAR EXPECTATION TERMS OF THEIR
01:08:45.321 --> 01:08:46.422
THEIR TO THEIR TITLE OR
01:08:46.489 --> 01:08:47.656
DESIGNATION AS WELL AS THEIR
01:08:47.723 --> 01:08:50.426
THEIR DUTY STATEMENTS OF THE BE
01:08:50.493 --> 01:08:52.828
HELD ACCOUNTABLE TO IT.
01:08:52.895 --> 01:08:54.430
SO I'M JUST GOING TO THE OTHER
01:08:54.497 --> 01:08:56.165
COMPONENT OF IT DID YOU HAVE AN
01:08:56.232 --> 01:08:57.533
OPPORTUNITY --
01:08:57.600 --> 01:08:58.801
TO SEE IF THE AUTHORITY BOARD
01:08:58.868 --> 01:09:03.639
WAS QUALIFIED FOR OVERSIGHT.
01:09:03.706 --> 01:09:05.307
UP WHAT WE WHAT WE DID TALK
01:09:05.374 --> 01:09:06.742
ABOUT IN THE REPORTED TO BE WE
01:09:06.809 --> 01:09:08.210
WE WE ALLUDED TO REPORT THAT TO
01:09:08.277 --> 01:09:09.678
SET OUT OR PUT OUT IN IN AUGUST
01:09:09.745 --> 01:09:11.413
RELATED TO THE THE BAY BRIDGE
01:09:11.480 --> 01:09:12.414
TOLL.
01:09:12.481 --> 01:09:15.084
GRAHAM THE RETROFIT AND WE
01:09:15.150 --> 01:09:16.485
DETERMINED THAT --
01:09:16.552 --> 01:09:18.521
INCREASED EXTERNAL OVERSIGHT OF
01:09:18.587 --> 01:09:20.089
THAT OF THAT PROGRAM AND MADE
01:09:20.155 --> 01:09:21.824
HUGE STRIDES IN HELPING IT STAY
01:09:21.891 --> 01:09:23.259
CLOSE TO BUDGET AND PUSH BACK ON
01:09:23.325 --> 01:09:24.760
SOME SPECIFICALLY SOME OF THE
01:09:24.827 --> 01:09:26.462
CHANGES TO CONTRACT AND TIME
01:09:26.529 --> 01:09:27.029
LINES THAT HAVE PLAGUED THE
01:09:27.096 --> 01:09:27.997
AUTHORITY.
01:09:28.063 --> 01:09:29.798
I WILL SAY THAT WE WE DO NOTING
01:09:29.865 --> 01:09:32.801
THE REPORT LAERTES BETWEEN THAT
01:09:32.868 --> 01:09:34.637
PROJECT IN THE AUTHORITY NAMELY
01:09:34.703 --> 01:09:36.205
THE EXISTENCE OF THE AUTHORITIES
01:09:36.272 --> 01:09:37.373
FOR OF DIRECTORS.
01:09:37.439 --> 01:09:37.973
AND SO THAT'S SOMETHING THAT
01:09:38.040 --> 01:09:40.476
NEEDS TO BE ACKNOWLEDGED HOWEVER
01:09:40.543 --> 01:09:42.478
THE YOU KNOW AS WE SAY THE
01:09:42.545 --> 01:09:43.979
EXISTENCE OF THAT OF THAT BOARD
01:09:44.046 --> 01:09:45.481
RECORDS HAS NOT ITSELF.
01:09:45.548 --> 01:09:46.882
BY ITS NATURE PRESERVE PREVENTED
01:09:46.949 --> 01:09:48.651
THE TYPES OF COST OVERRUNS AND
01:09:48.717 --> 01:09:49.218
DELAYS THAT HAVE MANIFESTED
01:09:49.285 --> 01:09:50.653
TODAY.
01:09:50.719 --> 01:09:51.754
SO THIS COULD JUST BE A POSITION
01:09:51.820 --> 01:09:52.922
FOR THE PEER REVIEW GROUP THAT
01:09:52.988 --> 01:09:56.292
THEY COULD BE MORE EFFECTIVE OF
01:09:56.358 --> 01:09:57.860
STEPPING UP THEIR ROLE
01:09:57.927 --> 01:09:58.160
[inaudible]
01:09:58.227 --> 01:10:01.130
SO THE WE'VE GROUP IS ALSO A
01:10:01.196 --> 01:10:02.598
POOR COMPONENT --
01:10:02.665 --> 01:10:03.699
OF EXT TAKE THE EXTERNAL
01:10:03.766 --> 01:10:05.100
OVERSIGHT ALTHOUGH I MY
01:10:05.167 --> 01:10:05.768
UNDERSTANDING THAT HASN'T UNTIL
01:10:05.834 --> 01:10:07.770
RECENTLY BEEN FULLY STAFFED SO --
01:10:07.836 --> 01:10:09.371
IN IN CERTAINLY IN DOING THAT
01:10:09.438 --> 01:10:11.173
INCREASED OVERSIGHT IN ANY FORM
01:10:11.240 --> 01:10:14.310
WOULD BE WOULD BE POSITIVE.
01:10:14.376 --> 01:10:15.911
SO ONE OF THE REASONS THE
01:10:15.978 --> 01:10:16.879
AUTHORITY GIVES FOR NOT HIRING
01:10:16.946 --> 01:10:18.147
MORE STATE WORKERS AT THE
01:10:18.213 --> 01:10:22.952
PROJECT HAS A FINITE LIFESPAN --
01:10:23.018 --> 01:10:23.953
I MEAN IT.
01:10:24.019 --> 01:10:26.221
LOOKS LIKE IT IS MORE THAN MY
01:10:26.288 --> 01:10:28.958
LIFESPAN --
01:10:29.024 --> 01:10:29.925
AND THAT IS THERE.
01:10:29.992 --> 01:10:31.527
THAT THERE'S NOT MANY CONTRACT
01:10:31.594 --> 01:10:33.062
MANAGERS IN THE STATE FOR
01:10:33.128 --> 01:10:33.295
SERVICE.
01:10:33.362 --> 01:10:34.463
ARE.
01:10:34.530 --> 01:10:37.366
MAYBE CALL FIVE MANAGERS --
01:10:37.433 --> 01:10:39.234
HOW WOULD YOU WOULD YOU RESPOND
01:10:39.301 --> 01:10:40.135
TO THIS?
01:10:40.202 --> 01:10:41.403
SAID TAKE TO TAKE YOUR YOUR
01:10:41.470 --> 01:10:42.738
COMMENTS OUT OF ORDER SIR --
01:10:42.805 --> 01:10:43.672
I'D I'M NOT AWARE OF ANY
01:10:43.739 --> 01:10:45.107
ANALYSIS THAT THE AUTHORITY
01:10:45.174 --> 01:10:45.574
PERFORM TO MAKE THAT
01:10:45.641 --> 01:10:47.009
DETERMINATION BUT THE
01:10:47.076 --> 01:10:48.544
AVAILABILITY OF THIS --
01:10:48.611 --> 01:10:49.211
THIS TALENT IN THE STATE'S CIVIL
01:10:49.278 --> 01:10:52.147
SERVICE POOL SO I CAN'T SPEAK TO
01:10:52.214 --> 01:10:52.848
THAT.
01:10:52.915 --> 01:10:54.550
I WILL SAY THAT IN TERMS OF THE
01:10:54.617 --> 01:10:55.918
DURATION OF THE PROJECT.
01:10:55.985 --> 01:10:57.753
IF THE AUTHORITY IS TO HAVE ANY
01:10:57.820 --> 01:10:59.254
PERMANENT ROLE WITH RESPECT TO
01:10:59.321 --> 01:11:00.589
THE SYSTEM THEY WILL BE IN
01:11:00.656 --> 01:11:02.024
CONTRACT MANAGEMENT --
01:11:02.091 --> 01:11:03.259
THE AUTHORITIES NOT GOING TO BE
01:11:03.325 --> 01:11:04.259
OPERATING AT SYSTEM IS NOT GOING
01:11:04.326 --> 01:11:05.394
BE DIRECTLY MAINTAINING ITS
01:11:05.461 --> 01:11:06.562
SYSTEM THAT WILL BE MANAGING
01:11:06.629 --> 01:11:08.030
CONTRACTORS TO DO SO.
01:11:08.097 --> 01:11:09.565
SO I WOULD PUSH BACK ON THE
01:11:09.632 --> 01:11:10.933
NOTION THAT THESE ARE.
01:11:11.000 --> 01:11:12.568
LIMITED DURATION APPOINTMENTS
01:11:12.635 --> 01:11:14.903
AND AS YOU POINT OUT SIR THAT.
01:11:14.970 --> 01:11:17.072
EVEN IF IF THEY WERE TO FALL OFF
01:11:17.139 --> 01:11:18.140
WHEN CONSTRUCTION THE SYSTEM IS
01:11:18.207 --> 01:11:19.541
COMPLETE WE'RE STILL LOOKING AT
01:11:19.608 --> 01:11:21.010
YOU KNOW MORE THAN A DECADE OF
01:11:21.076 --> 01:11:22.111
WORK THAT NEEDS TO BE DONE.
01:11:22.177 --> 01:11:23.412
A I JUST KNOW THAT WE'RE NOT
01:11:23.479 --> 01:11:26.148
PRESCRIPTIVE --
01:11:26.215 --> 01:11:27.916
PROPOSAL WAS GENERATED BY THE
01:11:27.983 --> 01:11:28.484
THE AUTHORITY WE WERE NOT
01:11:28.550 --> 01:11:29.718
PRESCRIPTIVE AND HOW THEY OBTAIN
01:11:29.785 --> 01:11:32.755
THE STAFF AND WE IT'S DIDN'T
01:11:32.821 --> 01:11:34.023
HIGHLY POSSIBLE THE AUTHORITY
01:11:34.089 --> 01:11:35.624
COULD LOOK INTO SHARING STAFF TO
01:11:35.691 --> 01:11:37.226
AND USE WITH OTHER AGENCIES SUCH
01:11:37.292 --> 01:11:38.560
AS CALTRANS --
01:11:38.627 --> 01:11:40.562
SO WE WE'VE BEEN FAIRLY OPEN
01:11:40.629 --> 01:11:42.164
ABOUT HOW THE THIRTY CAN
01:11:42.231 --> 01:11:42.931
ACCOMPLISH AND STAFFING NEEDS
01:11:42.998 --> 01:11:44.700
THING TO GET THE AUTHORITY TO
01:11:44.767 --> 01:11:45.501
MAKE THAT HAPPEN.
01:11:45.567 --> 01:11:46.802
SOON IT ALSO IN YOUR CAPACITY
01:11:46.869 --> 01:11:48.504
DID YOU HAVE AN OPPORTUNITY TO
01:11:48.570 --> 01:11:49.838
CHECK IN.
01:11:49.905 --> 01:11:51.507
ON THE PROJECTS ARE UNDER
01:11:51.573 --> 01:11:54.176
CONSTRUCTION OF THE FISSION SEES --
01:11:54.243 --> 01:11:55.411
WHEN I WAS DWN THERE TOURING IT
01:11:55.477 --> 01:11:57.046
LOOKED LIKE THERE WAS A LOT OF
01:11:57.112 --> 01:11:58.981
JUMPING AROUND TO MAKE WORK --
01:11:59.048 --> 01:12:00.649
BECAUSE OF NOT HAVING RIGHT AWAY
01:12:00.716 --> 01:12:02.518
ACQUISITION DID YOU HAVE THAT
01:12:02.584 --> 01:12:04.253
OPPORTUNITY TO SEE THAT THE THE
01:12:04.319 --> 01:12:05.287
PROJECTS WERE.
01:12:05.354 --> 01:12:09.591
BEING DONE IN THE MOST EFFICIENT
01:12:09.658 --> 01:12:11.460
MANNER.
01:12:11.527 --> 01:12:13.062
THE SPECIFIC --
01:12:13.128 --> 01:12:14.630
CONSTRUCTION SEQUENCING WAS NOT
01:12:14.697 --> 01:12:15.698
THE FOCUS OF OUR OF OUR AUDIT
01:12:15.764 --> 01:12:17.700
HOWEVER WE YOU KNOW WE WE
01:12:17.766 --> 01:12:18.634
OBVIOUSLY GET TO THE QUESTION OF
01:12:18.701 --> 01:12:19.835
ASSISTANCE EFFICIENCY THROUGH.
01:12:19.902 --> 01:12:20.936
THE METHODOLOGY THAT WE APPLY TO
01:12:21.003 --> 01:12:22.671
TRACKING PROGRESS TO DATE VERSUS
01:12:22.738 --> 01:12:23.439
WHAT THE SCHEDULE PROGRESS
01:12:23.505 --> 01:12:25.340
SHOULD BE AND FOUND THAT IT WAS
01:12:25.407 --> 01:12:28.043
OBVIOUSLY LACK AND GIVEN TO THE
01:12:28.110 --> 01:12:30.379
GROUND IF THEY NEED TO MAKE UP.
01:12:30.446 --> 01:12:31.280
AND MY LAST QUESTION MISTER
01:12:31.346 --> 01:12:31.513
CHAIR.
01:12:31.580 --> 01:12:32.681
SO WHEN WE LOOK AT THE RIGHT
01:12:32.748 --> 01:12:33.882
AWAY ACQUISITION --
01:12:33.949 --> 01:12:36.351
PROBLEMS THAT HAVE OCCURRED HAVE
01:12:36.418 --> 01:12:37.686
YOU.
01:12:37.753 --> 01:12:39.888
GIVEN ANY KIND OF RECOMMENDATION
01:12:39.955 --> 01:12:42.324
ON HOW --
01:12:42.391 --> 01:12:44.126
THAT THEY SHOULD MOVE FORWARD
01:12:44.193 --> 01:12:45.894
MAYBE LIKE THIS.
01:12:45.961 --> 01:12:47.629
IS THERE A PLAN B. THAT IF IT'S
01:12:47.696 --> 01:12:48.630
ONEROUS AND IT LOOKS LIKE IT'S A
01:12:48.697 --> 01:12:49.364
LENGTHY PROCESS.
01:12:49.431 --> 01:12:49.898
THAT MAYBE THERE SHOULD BE
01:12:49.965 --> 01:12:51.433
ANOTHER ROUTE TO GO INSTEAD OF
01:12:51.500 --> 01:12:56.071
JUMPING AROUND WASTING MONEY OR
01:12:56.138 --> 01:12:57.072
MAYBE HOPE YOU KNOW NOT HALTED
01:12:57.139 --> 01:12:58.140
PROJECT LOOKING AT HOW WE CAN BE
01:12:58.207 --> 01:13:01.443
MORE EFFICIENT ABOUT.
01:13:01.510 --> 01:13:03.479
UTILIZING THE FUNDS.
01:13:03.545 --> 01:13:04.580
SO WE DID AND FORGIVE ME FOR NOT
01:13:04.646 --> 01:13:05.347
MENTIONING DURING MY
01:13:05.414 --> 01:13:06.448
PRESENTATION WE DIDN'T MAKE --
01:13:06.515 --> 01:13:07.216
A COUPLE OF RECOMMENDATIONS
01:13:07.282 --> 01:13:08.951
SPECIFIC TO FUTURE CONSTRUCTION
01:13:09.017 --> 01:13:10.753
CONTRACTING WORK --
01:13:10.819 --> 01:13:12.554
NOTABLY ONE OF THOSE WAS THAT
01:13:12.621 --> 01:13:14.656
BEFORE IN AND PROCURING
01:13:14.723 --> 01:13:16.558
ADDITIONAL CONSTRUCTION WORK AT
01:13:16.625 --> 01:13:17.092
PLANTS TO DO --
01:13:17.159 --> 01:13:18.460
FIRST AND CHECK A PASS IN THE
01:13:18.527 --> 01:13:20.028
COMING YEARS THAT THE AUTHORITY
01:13:20.095 --> 01:13:21.497
NEEDS TO SET AND ACHIEVE
01:13:21.563 --> 01:13:22.965
BENCHMARKS RELATED TO THE
01:13:23.031 --> 01:13:23.866
ACQUISITION OF RIGHT AWAY
01:13:23.932 --> 01:13:26.168
IDENTIFICATION AND RELOCATION OF
01:13:26.235 --> 01:13:27.736
TOADIES AND CERTAINLY.
01:13:27.803 --> 01:13:29.138
REQUIRED AGREEMENTS WITH THIRD
01:13:29.204 --> 01:13:30.739
PARTY STAKEHOLDERS TO PREVENT
01:13:30.806 --> 01:13:32.441
EXACTLY THIS SORT OF SUCH
01:13:32.508 --> 01:13:34.309
SCENARIO FROM REPAIR WE PLAYING
01:13:34.376 --> 01:13:35.144
ITSELF.
01:13:35.210 --> 01:13:36.378
YOU THIRTY HAS PUT IN PLACE A
01:13:36.445 --> 01:13:38.647
DETAILED --
01:13:38.714 --> 01:13:40.883
BASELINE SCHEDULE THAT DOES IN
01:13:40.949 --> 01:13:42.518
THE THOSE SORTS OF ACTIVITIES
01:13:42.584 --> 01:13:44.219
HOWEVER THE AUTHORITY EVEN
01:13:44.286 --> 01:13:45.888
DURING OUR ENGAGEMENT.
01:13:45.954 --> 01:13:47.489
SAID TO US THAT.
01:13:47.556 --> 01:13:49.191
IT MAY HAVE TO REASSESS THAT
01:13:49.258 --> 01:13:50.325
BASELINE DEPENDING ON THE
01:13:50.392 --> 01:13:52.060
AVAILABILITY OF FUTURE FUNDING
01:13:52.127 --> 01:13:54.129
THINK IT'S CLEAR FROM.
01:13:54.196 --> 01:13:54.930
NEAR THE STATE AUDITOR'S REPORT
01:13:54.997 --> 01:13:55.731
THAT.
01:13:55.798 --> 01:13:57.432
WE DON'TAGREE WITH THE DECISION
01:13:57.499 --> 01:13:58.333
TO TO TAKE ON THE REST THE
01:13:58.400 --> 01:13:59.535
AUTHORITY DID WHEN IT ENTER
01:13:59.601 --> 01:14:00.536
CONSTRUCTION CENTRAL VALLEY
01:14:00.602 --> 01:14:03.338
NEARLY IN RESPONSE TO THE
01:14:03.405 --> 01:14:03.605
FEDERAL --
01:14:03.672 --> 01:14:05.307
GRANT MONEY.
01:14:05.374 --> 01:14:07.042
JUST ONE MORE QUESTION BASED ON
01:14:07.109 --> 01:14:08.510
THAT ANSWER STRUCTURE.
01:14:08.577 --> 01:14:09.411
DID YOU LOOK AT THE NUMBER ONE A
01:14:09.478 --> 01:14:12.314
CHANGE ORDER THAT WAS ISSUED OF
01:14:12.381 --> 01:14:14.616
FROM I THINK WAS TO SALIVA.
01:14:14.683 --> 01:14:16.985
ON AN EARLY MYT BAND --
01:14:17.052 --> 01:14:18.921
AND THE VERY PART OF THE START
01:14:18.987 --> 01:14:19.288
OF THE PROJECT.
01:14:19.354 --> 01:14:23.392
OF KNOWING THAT IT WAS A CHANGE
01:14:23.458 --> 01:14:26.962
OR BECAUSE OF THE CONTRACT WAS
01:14:27.029 --> 01:14:27.563
ORDERED INTO REALLY.
01:14:27.629 --> 01:14:29.832
AND THE AMOUNT.
01:14:29.898 --> 01:14:32.701
SO I I'M NOT SURE I AND I COULD
01:14:32.768 --> 01:14:34.102
SPEAK TO THE SPECIFIC CHANGE
01:14:34.169 --> 01:14:34.937
ORDER YOU'RE REFERRING --
01:14:35.003 --> 01:14:36.205
TO I WE DID AS PART OF OUR
01:14:36.271 --> 01:14:37.172
REVIEW OF INDIVIDUAL CHANGE
01:14:37.239 --> 01:14:38.006
ORDERS LOOK AT TWO THAT WERE
01:14:38.073 --> 01:14:39.274
EXECUTED THROUGH SETTLEMENT
01:14:39.341 --> 01:14:40.242
AGREEMENTS LEGAL SEVEN
01:14:40.309 --> 01:14:42.144
AGREEMENTS OUTSIDE OF THE NORMAL --
01:14:42.211 --> 01:14:44.746
PROCESS ONE OF THOSE WAS FOR THE
01:14:44.813 --> 01:14:46.148
CONSTRUCTOR PACK CONSTRUCTION
01:14:46.215 --> 01:14:48.483
PACKAGE --
01:14:48.550 --> 01:14:50.986
CONTRACT WITH TO TO BRAINY
01:14:51.053 --> 01:14:51.820
DOLLARS WITH --
01:14:51.887 --> 01:14:53.589
AND BECAUSE THE DRIVING BECAUSE
01:14:53.655 --> 01:14:54.723
OF THAT AS STATED IN A PUBLIC
01:14:54.790 --> 01:14:58.093
CHANGER WAS RIGHT OF WAY DELAY --
01:14:58.160 --> 01:15:00.596
THE HOW THE AUTHORITY DID A
01:15:00.662 --> 01:15:01.363
CERTAIN --
01:15:01.430 --> 01:15:02.664
ATTORNEY CLIENT PRIVILEGE OVER
01:15:02.731 --> 01:15:04.633
THE DOCUMENTATION ASSOCIATED
01:15:04.700 --> 01:15:06.401
WITH VERY ARRIVING AT THAT
01:15:06.468 --> 01:15:08.036
DOLLAR AMOUNTS THAT'S NOT
01:15:08.103 --> 01:15:08.670
SOMETHING THAT WE ADDRESS IN THE
01:15:08.737 --> 01:15:10.239
REPORT.
01:15:10.305 --> 01:15:12.207
THANK YOU VERY MUCH THANK YOU
01:15:12.274 --> 01:15:17.179
VERY MUCH GERMAN BELL --
01:15:17.246 --> 01:15:19.181
THANK YOU AND I APPRECIATE THE
01:15:19.248 --> 01:15:21.283
JUST EVERYBODY ON THE TEAM THAT
01:15:21.350 --> 01:15:24.386
WORKED ON THIS IS SUCH A GREAT
01:15:24.453 --> 01:15:26.588
JOB BOND --
01:15:26.655 --> 01:15:28.724
IN COMPLETING THIS --
01:15:28.790 --> 01:15:29.591
ESPECIALLY --
01:15:29.658 --> 01:15:30.959
THE TIMING OF YOUR REPORT IS
01:15:31.026 --> 01:15:32.828
IMPORTANT.
01:15:32.895 --> 01:15:34.129
SO -- I HAD
01:15:34.196 --> 01:15:35.197
I HAD A COUPLE --
01:15:35.264 --> 01:15:36.765
GOING BACK TO THE ORIGINAL
01:15:36.832 --> 01:15:38.500
REQUEST.
01:15:38.567 --> 01:15:40.469
I'M JUST GONNA DO SOME CHECK
01:15:40.535 --> 01:15:42.337
COSTS -- ON
01:15:42.404 --> 01:15:43.739
WHAT WE ORIGINALLY HAD SHOT --
01:15:43.805 --> 01:15:50.078
REQUESTED AND SEE --
01:15:50.145 --> 01:15:51.079
KIND OF WHAT HAPPENED WITH THE
01:15:51.146 --> 01:15:52.714
AUDIT WHEN WE ORIGINALLY REQUEST
01:15:52.781 --> 01:15:53.615
CERTAIN THINGS.
01:15:53.682 --> 01:15:56.184
BECAUSE I WAS [inaudible]
01:15:56.251 --> 01:15:58.153
SOMEWHAT SPECIFIC.
01:15:58.220 --> 01:16:01.223
AND THINGS I ASKED.
01:16:01.290 --> 01:16:02.157
FOR OKAY SO --
01:16:02.224 --> 01:16:03.859
EVALUATING THE AUTHORITIES
01:16:03.926 --> 01:16:05.994
PROCESS FOR REVIEWING APPROVING
01:16:06.061 --> 01:16:07.496
DESIGN BUILD.
01:16:07.562 --> 01:16:08.830
CONTRACT CHANGE ORDER YOU
01:16:08.897 --> 01:16:10.632
ADDRESS SOME OF THAT --
01:16:10.699 --> 01:16:13.302
WAS THERE ANY ADDITIONAL BEYOND
01:16:13.368 --> 01:16:16.872
OR STATUTORY AUTHORITY WE NOW
01:16:16.939 --> 01:16:18.573
HAVE THAT YOU NEED.
01:16:18.640 --> 01:16:20.475
TO RECOMMEND TO THE STATE
01:16:20.542 --> 01:16:26.181
LEGISLATURE ON THAT SUBJECT.
01:16:26.248 --> 01:16:27.149
A WITH WE DON'T HAVE ANY CURRENT
01:16:27.215 --> 01:16:28.483
RECOMMENDATIONS IN THE REPORT TO
01:16:28.550 --> 01:16:29.584
THE STATE LEGISLATURE SENATOR
01:16:29.651 --> 01:16:32.587
BUT WE WE DID DISCUSS THE THE
01:16:32.654 --> 01:16:34.022
REPORTING --
01:16:34.089 --> 01:16:35.590
ABOUT PROGRESS NOT REPORTING IS
01:16:35.657 --> 01:16:37.659
PRIMARILY DRIVEN BY THE
01:16:37.726 --> 01:16:39.528
INTRODUCTION AND EXECUTION OF
01:16:39.594 --> 01:16:40.662
CHANGE ORDERS ANY CONCERN THAT
01:16:40.729 --> 01:16:41.296
THE REPORTING WITH THE NEED FOR
01:16:41.363 --> 01:16:42.397
THAT REPORTING --
01:16:42.464 --> 01:16:44.232
AS WE AS WE DEMONSTRATE IN A
01:16:44.299 --> 01:16:46.935
FIGURE IN OUR CHANGE ORDERS HAVE
01:16:47.002 --> 01:16:48.270
A REAL MEASURABLE IMPACT IN
01:16:48.337 --> 01:16:49.538
TERMS OF TIME AND DOLLAR AMOUNT
01:16:49.604 --> 01:16:51.073
THAT PUSH THE AND THE LINE OR
01:16:51.139 --> 01:16:52.674
THE GOAL LINE OUT AN UPWARDS FOR
01:16:52.741 --> 01:16:53.642
THE AUTHORITY.
01:16:53.709 --> 01:16:55.544
THEREBY INCREASING BY DEFINITION
01:16:55.610 --> 01:16:57.646
THE RATE OF SPEED NEEDS TO TO A
01:16:57.713 --> 01:16:59.681
FACT IN ORDER TO ACHIEVE THAT
01:16:59.748 --> 01:17:01.216
DEADLINE SO.
01:17:01.283 --> 01:17:03.485
CERTAINLY.
01:17:03.552 --> 01:17:03.819
YOU KNOW WE'D.
01:17:03.885 --> 01:17:06.121
BE HAPPY TO DO WHAT I'M TALKING
01:17:06.188 --> 01:17:07.489
ABOUT IS ARE ANY --
01:17:07.556 --> 01:17:09.624
PROCESS CHANGES OR LEGISLATIVE
01:17:09.691 --> 01:17:12.427
STATUTE CHANGE STATUTORY CHANGES.
01:17:12.494 --> 01:17:18.200
DAD NEED TO TAKE PLACE --
01:17:18.266 --> 01:17:19.768
TO LOOK AT WAYS OF EXPEDITING
01:17:19.835 --> 01:17:22.637
THE PROJECT.
01:17:22.704 --> 01:17:24.039
SENATOR WE DIDN'T IDENTIFY
01:17:24.106 --> 01:17:25.240
ANYTHING --
01:17:25.307 --> 01:17:26.808
AS MR ENERGY INDICATED WE HAVE
01:17:26.875 --> 01:17:27.776
THE ONE LEGISLATIVE
01:17:27.843 --> 01:17:28.977
RECOMMENDATION --
01:17:29.044 --> 01:17:30.145
REGARDING THE QUARTERLY
01:17:30.212 --> 01:17:31.613
REPORTING BUT WE DIDN'T IDENTIFY
01:17:31.680 --> 01:17:34.249
ANY STATUTORY CHANGES THAT NEED.
01:17:34.316 --> 01:17:36.752
EITHER ADDITIONS TO STATUTE OR
01:17:36.818 --> 01:17:38.320
STATUTORY.
01:17:38.387 --> 01:17:39.187
OKAY TO THE TO THE EXTENT
01:17:39.254 --> 01:17:41.857
POSSIBLE --
01:17:41.923 --> 01:17:42.824
LOOK AT THE AUTHORITIES OF
01:17:42.891 --> 01:17:44.393
EFFORTS TO DETERMINE THE
01:17:44.459 --> 01:17:47.295
ECONOMIC IMPACT --
01:17:47.362 --> 01:17:49.431
COULD YOU TALK ABOUT THAT A
01:17:49.498 --> 01:17:54.102
LITTLE BIT AND ESERVER --
01:17:54.169 --> 01:17:58.206
APPROPRIATE --
01:17:58.273 --> 01:18:00.275
THE H. MARKS INDICATORS
01:18:00.342 --> 01:18:02.544
REGARDING THE ECONOMIC IMPACT.
01:18:02.611 --> 01:18:05.480
OF METRIC SO WE CAN HOUSE --
01:18:05.547 --> 01:18:07.682
AVAILABLE TO US.
01:18:07.749 --> 01:18:08.984
SENATOR FORGIVE ME FOR A MEETING
01:18:09.051 --> 01:18:12.054
THAT SUMMARY FROM MY INITIAL
01:18:12.120 --> 01:18:14.389
PRESENTATION WE WE DID.
01:18:14.456 --> 01:18:15.157
WE DID.
01:18:15.223 --> 01:18:15.957
WE DID LOOK AT THE AUTHORITIES
01:18:16.024 --> 01:18:16.658
PROCESS BY WHICH IT --
01:18:16.725 --> 01:18:17.993
CALCULATES AND REPORTS ON ITS
01:18:18.060 --> 01:18:19.828
ESTIMATED ECONOMIC IMPACT OF
01:18:19.895 --> 01:18:21.263
CONSTRUCTION CENTRAL VALLEY AS
01:18:21.329 --> 01:18:23.498
WORLD SPENDING ELSEWHERE.
01:18:23.565 --> 01:18:25.100
WE DETERMINE IF FORTY USES A
01:18:25.167 --> 01:18:25.834
CHANNEL ACCEPTED --
01:18:25.901 --> 01:18:27.069
TECHNOLOGY AND TECHNIQUES AND
01:18:27.135 --> 01:18:29.071
PRACTICES FOR ESTIMATING IMPACT
01:18:29.137 --> 01:18:30.372
BASED ON THE DOLLAR AMOUNT
01:18:30.439 --> 01:18:31.973
EXPENDED AND TO THE ECONOMIC
01:18:32.040 --> 01:18:34.409
SECTORS AND GEOGRAPHIC LOCATIONS
01:18:34.476 --> 01:18:36.078
AND TO WHICH IT'S BEING SPENT --
01:18:36.144 --> 01:18:38.547
WE DID IDENTIFIED SOME ISSUES
01:18:38.613 --> 01:18:40.382
WITH THE THE PRECISION OF SOME
01:18:40.449 --> 01:18:41.650
OF THE BACKUP DATA THAT THE
01:18:41.716 --> 01:18:45.954
AUTHORITY HAD TO SUPPORT --
01:18:46.021 --> 01:18:49.591
IT'S DATA ENTRY BUT ALREADY MADE
01:18:49.658 --> 01:18:50.725
IN TERMS OF DESTINATION SOME OF
01:18:50.792 --> 01:18:51.593
SOME OF THE METHODOLOGICAL
01:18:51.660 --> 01:18:53.261
CHALLENGES THAT FACE THAT THOSE
01:18:53.328 --> 01:18:54.596
ARE REASONABLE OUT OR AT LEAST
01:18:54.663 --> 01:18:56.131
DO NOT DO NOT IN ANY SUBSTANTIVE
01:18:56.198 --> 01:18:59.267
WAY IMPACT THE ACCURACY OF THE
01:18:59.334 --> 01:19:01.002
OF THE ESTIMATES THAT IT REPORTS --
01:19:01.069 --> 01:19:02.537
SO WE WE DON'T HAVE ANY CONCERN
01:19:02.604 --> 01:19:04.072
AT THIS POINT THAT THE AUTHORITY
01:19:04.139 --> 01:19:05.440
IS UNDER SIGNIFICANT UNDER ALL
01:19:05.507 --> 01:19:07.976
REPORTING THE FINANCIAL IMPACT
01:19:08.043 --> 01:19:09.411
OF ITS ACTIVITIES.
01:19:09.478 --> 01:19:10.912
OKAY THAT'S THAT'S GOOD I THINK
01:19:10.979 --> 01:19:11.980
WE'RE WE'RE I'M INTEREST OF
01:19:12.047 --> 01:19:13.281
FOLLOWING UP ON THAT --
01:19:13.348 --> 01:19:15.350
HOW ABOUT --
01:19:15.417 --> 01:19:17.319
SMALL AND DISADVANTAGED
01:19:17.385 --> 01:19:21.456
BUSINESSES AND MAKE IT EASIER
01:19:21.523 --> 01:19:22.624
FOR SMALL DISADVANTAGED
01:19:22.691 --> 01:19:26.394
BUSINESSES. TO ENGAGE WITH THE
01:19:26.461 --> 01:19:28.864
AUTHORITY ON CONTRACTS.
01:19:28.930 --> 01:19:31.333
IN TERMS OF BENEFITING --
01:19:31.399 --> 01:19:34.636
OUR GOALS AND STATE --
01:19:34.703 --> 01:19:37.005
TO EXPAND OPPORTUNITIES FOR ALL
01:19:37.072 --> 01:19:39.641
BUSINESSES IN CALIFORNIA.
01:19:39.708 --> 01:19:42.177
THAT WAS ONE OF THE REQUEST AN A
01:19:42.244 --> 01:19:44.412
ON IT YEAH CAN YOU COVER THAT
01:19:44.479 --> 01:19:45.547
THAT WASN'T COVERED IN REMARKS.
01:19:45.614 --> 01:19:47.015
YES SIR --
01:19:47.082 --> 01:19:48.817
AS AS WHAT WHAT AS WE DID JERRY
01:19:48.884 --> 01:19:50.152
MARKS THE THE AUTHORITY IS CLOSE
01:19:50.218 --> 01:19:51.186
TO ME IS 30% --
01:19:51.253 --> 01:19:52.320
BENCHMARK SO TO THAT BY THAT
01:19:52.387 --> 01:19:53.755
MEASURE IF THEY ARE DOING AT
01:19:53.822 --> 01:19:54.956
LEAST THEY ARE CLOSE TO CHEATING
01:19:55.023 --> 01:19:57.125
THEIR OWN ESTABLISHED GOAL FOR
01:19:57.192 --> 01:19:58.126
FOR BRINGING SMALL INCIDENTS
01:19:58.193 --> 01:20:00.629
BUSINESSES TO THE TABLE --
01:20:00.695 --> 01:20:01.296
WHAT DID NOT SHOW UP IN A REPORT
01:20:01.363 --> 01:20:02.597
OF WHAT WE DID PERFORM IN THIS
01:20:02.664 --> 01:20:03.965
AREA AS WE ALSO INTERVIEWED A
01:20:04.032 --> 01:20:04.833
SELECTION OF ITS CURRENT
01:20:04.900 --> 01:20:07.202
CONTRACTORS? TO DETERMINE YOU
01:20:07.269 --> 01:20:07.736
KNOW WHETHER THEY HAD ANY
01:20:07.802 --> 01:20:09.171
FEEDBACK TO BE A STORY ABOUT THE
01:20:09.237 --> 01:20:11.473
PROCESS BY WHICH THE THE PRIME
01:20:11.540 --> 01:20:12.908
CONTRACTORS THE LARGER THE
01:20:12.974 --> 01:20:14.042
LARGER CONTRACTORS FOR WHICH
01:20:14.109 --> 01:20:15.377
THEY SUBCONTRACTED SMALL
01:20:15.443 --> 01:20:16.511
BUSINESSES --
01:20:16.578 --> 01:20:17.512
AND THEY HAD SOME SOME FEEDBACK
01:20:17.579 --> 01:20:19.281
WAITED TO THAT THE TIMELINESS OF
01:20:19.347 --> 01:20:21.082
SOME REIMBURSEMENTS --
01:20:21.149 --> 01:20:25.353
SOME OF THE WITHHOLDING OF FUNDS
01:20:25.420 --> 01:20:27.956
UNTIL CONTRA COMPLETION AN OWNER
01:20:28.023 --> 01:20:30.258
SO WE DID SHARE THOSE COMMENTS
01:20:30.325 --> 01:20:32.160
WITH THE AUTHORITY --
01:20:32.227 --> 01:20:35.163
AS PART OF HEALTH IN A REPORT
01:20:35.230 --> 01:20:36.932
THAT'S NOT IN THE REPORT.
01:20:36.998 --> 01:20:39.034
SO THAT WAS ASKED OF WHEN WE
01:20:39.100 --> 01:20:40.936
REQUEST OF THE AUTHOR BUT YOU TO
01:20:41.002 --> 01:20:41.903
PUT A REPORT.
01:20:41.970 --> 01:20:45.840
WITCHY BIT SO I'M A LITTLE --
01:20:45.907 --> 01:20:46.508
CONCERNED ABOUT I'D LIKE TO HAVE
01:20:46.575 --> 01:20:46.708
SOME.
01:20:46.775 --> 01:20:49.578
SOME OF BECAUSE I ASKED FOR THE
01:20:49.644 --> 01:20:51.213
INFORMATION NOT THE AUTHORITY
01:20:51.279 --> 01:20:53.515
THE WEEK WE ASKED FOR IT IN OUR
01:20:53.582 --> 01:20:54.449
DIRECTION DO YOU.
01:20:54.516 --> 01:20:56.952
YOU YOU NEED TO REPORT TO US
01:20:57.018 --> 01:20:57.652
WHEN WE ASK YOU FOR THAT KIND OF
01:20:57.719 --> 01:20:58.119
STUFF.
01:20:58.186 --> 01:20:59.487
SO I WOULD LIKE TO SEE.
01:20:59.554 --> 01:21:01.256
IT WAS NOT INCLUDED IN THE AUDIT
01:21:01.323 --> 01:21:01.823
SO I WOULD LIKE TO SEE THAT
01:21:01.890 --> 01:21:02.958
INFORMATION.
01:21:03.024 --> 01:21:04.359
BECAUSE I THINK --
01:21:04.426 --> 01:21:06.094
THE LEGISLATORS COULD BE VERY
01:21:06.161 --> 01:21:08.296
INTERESTED.
01:21:08.363 --> 01:21:09.497
IN --
01:21:09.564 --> 01:21:10.532
GROWING THE CONSTRUCTION
01:21:10.599 --> 01:21:11.466
INDUSTRY --
01:21:11.533 --> 01:21:13.535
ENCOURAGING SMALL DISADVANTAGED
01:21:13.602 --> 01:21:14.636
BUSINESSES.
01:21:14.703 --> 01:21:17.072
AND THAT'S WHY WE PUT THIS
01:21:17.138 --> 01:21:19.541
QUESTION AND THIS.
01:21:19.608 --> 01:21:22.510
AND PERSONALLY I THINK WE ARE
01:21:22.577 --> 01:21:25.647
PUBLISHED YOU KNOW.
01:21:25.714 --> 01:21:27.315
WE DID IT IN SB.
01:21:27.382 --> 01:21:31.353
ONE AND BY THE WAY MR FRAZIER
01:21:31.419 --> 01:21:31.653
[inaudible]
01:21:31.720 --> 01:21:35.523
GRADUATIONS --
01:21:35.590 --> 01:21:36.124
WE'RE VERY WE WERE VINDICATED
01:21:36.191 --> 01:21:38.593
WARMING.
01:21:38.660 --> 01:21:42.497
ALSO SO IT WAS IN SB --
01:21:42.564 --> 01:21:44.399
ONE TO GROW THE SMALL BUSINESSES.
01:21:44.466 --> 01:21:45.867
AND THE REASON WHY WE PUT THAT
01:21:45.934 --> 01:21:47.402
IN THIS AUDIT REQUEST.
01:21:47.469 --> 01:21:48.470
WAS WE NEEDED TO HAVE THAT
01:21:48.536 --> 01:21:49.971
INFORMATION TO SEE IF THERE WAS
01:21:50.038 --> 01:21:52.207
ANY IDEAS.
01:21:52.274 --> 01:21:54.175
OF HOW TO DO A BETTER JOB.
01:21:54.242 --> 01:21:57.212
IN DOING SO AND YOU DON'T PUT IT
01:21:57.279 --> 01:21:58.246
IN YOUR AUTO.
01:21:58.313 --> 01:22:03.585
SO YOU NEEDED WANTED TO YOU KNOW.
01:22:03.652 --> 01:22:04.686
THAT WAS REQUESTED BUT WASN'T IN.
01:22:04.753 --> 01:22:05.954
SENATOR WE DO HAVE A DISCUSSION
01:22:06.021 --> 01:22:07.922
AND I UNDERSTAND I UNDERSTAND
01:22:07.989 --> 01:22:08.423
YOUR CONCERN BASED ON MR
01:22:08.490 --> 01:22:08.990
RIGHTIES A RESPONSE TO THE
01:22:09.057 --> 01:22:09.858
QUESTION WE DO HAVE A DISCUSSION
01:22:09.924 --> 01:22:12.193
IN THE AUDIT REPORT RELATED --
01:22:12.260 --> 01:22:13.528
TO THE UTILIZATION OF SMALL
01:22:13.595 --> 01:22:15.030
BUSINESSES DISADVANTAGED
01:22:15.096 --> 01:22:16.598
BUSINESSES AND DISABLED VETERAN
01:22:16.665 --> 01:22:17.899
BUSINESSES THAT WAS A QUESTION
01:22:17.966 --> 01:22:21.102
YOU ASKED US AND SO WE DO --
01:22:21.169 --> 01:22:23.338
DISCUSS AND THIS IS AN AREA AS
01:22:23.405 --> 01:22:24.939
AS WE INDICATED IN OUR COMMENTS
01:22:25.006 --> 01:22:26.007
THAT OVERALL THE AUTHORITY IS
01:22:26.074 --> 01:22:29.177
DOING A GOOD JOB THEY SET A 30% --
01:22:29.244 --> 01:22:31.813
GOAL -- AS
01:22:31.880 --> 01:22:34.516
AS FAR AS WANTING THAT I FELT
01:22:34.582 --> 01:22:37.552
THAT THEIR REPORTING OVERALL AS
01:22:37.619 --> 01:22:38.953
TO THE PARTICIPATION UNDERSTAND
01:22:39.020 --> 01:22:40.188
YOUR CONCERN AND WE CAN
01:22:40.255 --> 01:22:41.356
CERTAINLY PROVIDE SOME
01:22:41.423 --> 01:22:43.058
ADDITIONAL INFORMATION I WANT TO
01:22:43.124 --> 01:22:45.427
KNOW MORE ABOUT THAT CERTAINLY.
01:22:45.493 --> 01:22:47.696
YOUR YOUR COMMUNITY IS THE ONE
01:22:47.762 --> 01:22:49.964
THAT'S GETTING THOSE.
01:22:50.031 --> 01:22:51.466
CONTRACT SO --
01:22:51.533 --> 01:22:56.171
THE LAST YEAR IT WAS --
01:22:56.237 --> 01:22:57.772
SOMETHING THAT --
01:22:57.839 --> 01:22:59.374
A LOT OF US ARE BEEN WORKING ON
01:22:59.441 --> 01:23:00.608
FOR A LONG TIME.
01:23:00.675 --> 01:23:01.676
AND WE PUT IT IN THE AUDIT
01:23:01.743 --> 01:23:03.511
REQUESTED DETERMINE WHETHER
01:23:03.578 --> 01:23:05.747
OPPORTUNITIES. FOR THE AUTHORITY
01:23:05.814 --> 01:23:07.515
EXPEDITE THE PROJECT AND REDUCE
01:23:07.582 --> 01:23:08.450
CROC COST.
01:23:08.516 --> 01:23:09.951
THROUGH COOPERATION WITH OTHER
01:23:10.018 --> 01:23:13.088
TRANSPORTATION AGENCIES.
01:23:13.154 --> 01:23:15.190
OUR OWN SEARCHES TRANCE ARENA
01:23:15.256 --> 01:23:17.759
LINES -- YOU
01:23:17.826 --> 01:23:19.861
KNOW JOINT --
01:23:19.928 --> 01:23:24.032
TRANSIT FACILITIES --
01:23:24.099 --> 01:23:25.266
CAPTURING ADDITIONAL VALUE
01:23:25.333 --> 01:23:28.103
THROUGH CONSTRUCTION PROJECT CAP
01:23:28.169 --> 01:23:29.704
VALUE CAPTURES.
01:23:29.771 --> 01:23:31.272
THE NEW ADDRESS --
01:23:31.339 --> 01:23:32.607
THE AUDITS --
01:23:32.674 --> 01:23:34.008
OR ANY KIND OF INFORMATION YOU
01:23:34.075 --> 01:23:35.643
HAVE.
01:23:35.710 --> 01:23:38.580
A REAL.
01:23:38.646 --> 01:23:41.583
TO TO TO EXPEDITING THE PROJECT.
01:23:41.649 --> 01:23:42.884
AND REDUCING COSTS IN THOSE
01:23:42.951 --> 01:23:45.286
AREAS.
01:23:45.353 --> 01:23:47.722
YES SENATOR WITH RESPECT AND I
01:23:47.789 --> 01:23:50.091
WANTED.
01:23:50.158 --> 01:23:52.227
TO SO WITH AND WE AND WE ENTER
01:23:52.293 --> 01:23:52.894
THE AUDIT WITH THAT SO THAT IS
01:23:52.961 --> 01:23:54.129
AN OPEN QUESTION AND AND
01:23:54.195 --> 01:23:54.896
IDENTIFIED AND THE CONCEPT OF
01:23:54.963 --> 01:23:56.030
SHARING INFRASTRUCTURE IS ONE
01:23:56.097 --> 01:23:57.465
THAT CAN HELP EXPEDITE.
01:23:57.532 --> 01:23:58.466
CONSTRUCTION BY LIMITING AT THE
01:23:58.533 --> 01:23:59.901
SCHOOL OF CONSTRUCTION CERTAINLY
01:23:59.968 --> 01:24:01.369
THE COSTS ASSOCIATED WITH IT.
01:24:01.436 --> 01:24:03.071
AS AS AS WAS STATED EARLIER THE
01:24:03.138 --> 01:24:06.074
AUTHORITY HAS UTILIZED THAT THAT
01:24:06.141 --> 01:24:08.076
TECHNIQUE ON THE SENATE JUST
01:24:08.143 --> 01:24:09.544
OPENED SO --
01:24:09.611 --> 01:24:10.979
FROM ALL THE WAY FROM SENATE IS
01:24:11.045 --> 01:24:12.180
GOING TO GILROY.
01:24:12.247 --> 01:24:13.548
AND AGAIN THROUGH THE THE DENSE
01:24:13.615 --> 01:24:14.916
URBAN ENVIRONMENT OF OF BURBANK
01:24:14.983 --> 01:24:18.119
TO LA DOWNTOWN LA --
01:24:18.186 --> 01:24:21.589
UNFORTUNATELY THE BETWEEN DID
01:24:21.656 --> 01:24:22.791
THERE ARE NO CLEAR OPTIONS AT
01:24:22.857 --> 01:24:25.293
THE AUTHORITY COULD USED --
01:24:25.360 --> 01:24:26.961
TO TO YOU GET GET IN IN IN
01:24:27.028 --> 01:24:28.730
COLLABORATION WITH EXISTING
01:24:28.797 --> 01:24:29.297
INFRASTRUCTURE IF THERE IS
01:24:29.364 --> 01:24:32.167
OPPORTUNITIES TO DO THAT THAT
01:24:32.233 --> 01:24:35.904
WAS THE IN THE DIRECTIVE ON AUTO.
01:24:35.970 --> 01:24:36.805
CORRECT CERTAINLY AND WE
01:24:36.871 --> 01:24:38.773
IDENTIFIED IN AN EDIT NOTATIONAL
01:24:38.840 --> 01:24:40.275
OPPORTUNITIES THAT EXIST --
01:24:40.341 --> 01:24:41.209
IN ADDITION THE THE AUTHORITY
01:24:41.276 --> 01:24:42.577
POINTED OUT THAT --
01:24:42.644 --> 01:24:43.778
AND THIS IS A TRIBUTE TO THE
01:24:43.845 --> 01:24:45.013
AUTHORITY BUT FOR THEIR TIME
01:24:45.079 --> 01:24:47.482
TRAVEL ESTIMATES THEY ARE UP
01:24:47.549 --> 01:24:49.517
AGAINST THE TO OUR FORTY MINUTE.
01:24:49.584 --> 01:24:51.085
REQUIREMENT AND SO ADDITIONAL
01:24:51.152 --> 01:24:53.421
BLENDING AS AS WE NOTED
01:24:53.488 --> 01:24:54.322
PREVIOUSLY DOES CARRY WITH IT
01:24:54.389 --> 01:24:55.957
LOWERED MAXIM TRAVELING SPEEDS.
01:24:56.024 --> 01:24:57.125
SO THAT WOULD OBVIOUSLY BE A
01:24:57.192 --> 01:24:58.993
CONCERN FOR BINDING ADDITIONAL
01:24:59.060 --> 01:25:00.562
SEGMENTS OF THE SISTER WAY COULD
01:25:00.628 --> 01:25:05.867
TECHNICALLY BE DONE IN TERMS OF
01:25:05.934 --> 01:25:07.202
OPPORTUNITIES YOU KNOW LOOK AT
01:25:07.268 --> 01:25:09.838
THE SO THAT'S THAT'S UNKNOWN.
01:25:09.904 --> 01:25:12.040
WELL AS MISTER REGNERY INDICATED
01:25:12.106 --> 01:25:13.341
WE WE TALK TO THE AUTHORITY
01:25:13.408 --> 01:25:15.176
ABOUT THE BLINDING --
01:25:15.243 --> 01:25:18.313
OPTIONS THAT THEY ENGAGED IN AND
01:25:18.379 --> 01:25:19.747
AS MUCH RIDER INDICATED THE
01:25:19.814 --> 01:25:21.382
SEGMENTS THAT THEY FELT THEY
01:25:21.449 --> 01:25:23.518
COULD USE CALTRAIN OR EXISTING
01:25:23.585 --> 01:25:26.387
TRACK AND HAVE THAT PARTNERSHIP --
01:25:26.454 --> 01:25:28.323
THEY THEY HAVE EXHAUSTED ALL
01:25:28.389 --> 01:25:29.891
OPTIONS FOR THAT SO FUTURE
01:25:29.958 --> 01:25:32.627
CONSTRUCTION IN THE AREAS --
01:25:32.694 --> 01:25:34.963
THAT THAT REMAIN THERE IS NOT
01:25:35.029 --> 01:25:37.599
THAT OPPORTUNITY TO SHARE TRACK.
01:25:37.665 --> 01:25:39.634
ARE WITH WITH OTHER ENTITIES AND
01:25:39.701 --> 01:25:40.902
AS MISTER RIGHT INDICATED
01:25:40.969 --> 01:25:41.669
THERE'S A STATE LAW THAT
01:25:41.736 --> 01:25:44.405
REQUIRES THEM TO HAVE THIS TRAIN --
01:25:44.472 --> 01:25:47.108
BE ABLE TO MEET TIME LINES AS
01:25:47.175 --> 01:25:48.343
FAR AS TWO HOURS AND FORTY
01:25:48.409 --> 01:25:49.511
MINUTES AND THEY'RE UP AGAINST
01:25:49.577 --> 01:25:50.845
THAT THEY'RE WITHIN THREE
01:25:50.912 --> 01:25:52.113
MINUTES OF THAT SO.
01:25:52.180 --> 01:25:53.815
THAT STATE LAW POTENTIALLY COULD
01:25:53.882 --> 01:25:59.320
CHANGE THE TIMING OF OF HOW LONG --
01:25:59.387 --> 01:26:00.455
HOW QUICKLY A TRAIN SHOULD BE
01:26:00.522 --> 01:26:02.490
ABLE TO TO GET A PASSENGER FROM
01:26:02.557 --> 01:26:03.625
ONE POINT TO ANOTHER?
01:26:03.691 --> 01:26:05.627
BUT AS FAR AS AS EXISTING
01:26:05.693 --> 01:26:07.362
INFRASTRUCTURE --
01:26:07.428 --> 01:26:09.163
WE DIDN'T SEE ANY OPPORTUNITIES
01:26:09.230 --> 01:26:10.532
AND WE CERTAINLY DEFERRED OF THE
01:26:10.598 --> 01:26:11.766
AUTHORITY IF THEY HAVE
01:26:11.833 --> 01:26:13.601
ADDITIONAL IDEAS PERHAPS THEY
01:26:13.668 --> 01:26:14.435
WOULD BE ABLE TO PRESENT THOSE
01:26:14.502 --> 01:26:15.370
TODAY CUT.
01:26:15.436 --> 01:26:16.471
DURING THE COURSE OF THE AUDIT
01:26:16.538 --> 01:26:19.407
WE WE TRIED TO IDENTIFY --
01:26:19.474 --> 01:26:21.209
WORKING WITH THEIR EXPERTS --
01:26:21.276 --> 01:26:22.610
AND DID NOT SEE ANY ADDITIONAL
01:26:22.677 --> 01:26:24.178
OPPORTUNITIES.
01:26:24.245 --> 01:26:25.046
FOR YOU KNOW SHARING TRACKER
01:26:25.113 --> 01:26:26.781
USING THE BLENDING OPTION WHICH
01:26:26.848 --> 01:26:28.750
HAS BEEN BENEFICIAL FROM CERTAIN
01:26:28.816 --> 01:26:29.751
PERSPECTIVE CERTAINLY COST
01:26:29.817 --> 01:26:31.753
SAVINGS BUT THE FLIP SIDE IS IT
01:26:31.819 --> 01:26:33.688
SLOWS THE TRAINS DOWN AND IT
01:26:33.755 --> 01:26:35.156
REDUCES THE NUMBER OF TRAINS
01:26:35.223 --> 01:26:36.457
YOU'RE GONNA BE ABLE TO RUN.
01:26:36.524 --> 01:26:38.426
ABOUT -- THE
01:26:38.493 --> 01:26:42.063
VALUE CAPTURE ELEMENT --
01:26:42.130 --> 01:26:43.431
REGARDING --
01:26:43.498 --> 01:26:45.366
YES SIR I WE DID WE DID LOOK
01:26:45.433 --> 01:26:46.768
INTO VALUE CAPTURES AND INCLUDE
01:26:46.834 --> 01:26:47.835
NOT ONLY TO THE THAT THE
01:26:47.902 --> 01:26:49.737
FINANCING FINANCING DISTRICTS --
01:26:49.804 --> 01:26:51.573
WITH LOCAL STATE PARTNERSHIPS
01:26:51.639 --> 01:26:52.540
THAT WE FOUND THAT THE AUTHORITY
01:26:52.607 --> 01:26:54.409
HAS AS HAS FORMALLY CONSIDER
01:26:54.475 --> 01:26:56.377
THAT IS CERTAINLY AN OPTION
01:26:56.444 --> 01:26:57.545
THERE THEY'RE PUTTING FORTH IS A
01:26:57.612 --> 01:26:59.047
CONSIDERATION SPECIFICALLY IN
01:26:59.113 --> 01:27:00.381
THEIR STATION PLANNING --
01:27:00.448 --> 01:27:02.283
ENDEAVORS AND SO WE REVIEWED
01:27:02.350 --> 01:27:05.053
SEVERAL STATION PLANS FOR CITIES --
01:27:05.119 --> 01:27:06.187
PLAN TO INCLUDE A HIGH SPEED
01:27:06.254 --> 01:27:07.989
RAIL SYSTEMS ULTIMATELY
01:27:08.056 --> 01:27:09.090
INCLUDING FRESNO AND SO FORTH
01:27:09.157 --> 01:27:10.992
THAT THAT DO IDENTIFY THOSE
01:27:11.059 --> 01:27:12.694
VALUE CAPTURE TECHNIQUES AS A AS
01:27:12.760 --> 01:27:14.429
A DISTINCT POSSIBILITY GOING
01:27:14.495 --> 01:27:15.229
FORWARD.
01:27:15.296 --> 01:27:17.532
HOWEVER WE DETERMINE THAT THE
01:27:17.599 --> 01:27:18.199
THE THE STATION PLANNING PROCESS
01:27:18.266 --> 01:27:20.401
IS STILL IN ITS INFANCY AND SO
01:27:20.468 --> 01:27:22.070
WHILE THOSE THOSE AT THIS
01:27:22.136 --> 01:27:22.737
TECHNIQUE CERTAINLY HOPE PROMISE
01:27:22.804 --> 01:27:24.405
AND NOW IT WAS TOO EARLY FOR US
01:27:24.472 --> 01:27:26.140
TO DETERMINE WHETHER THEY WERE.
01:27:26.207 --> 01:27:26.741
IN THE AUTHORITY WAS GOING TO
01:27:26.808 --> 01:27:31.045
MOVE ON THEM OR FOR THAT
01:27:31.112 --> 01:27:33.047
DECISION WAS GONNA BE BENEFICIAL.
01:27:33.114 --> 01:27:34.616
DO YOU THINK THAT THOSE
01:27:34.682 --> 01:27:35.950
OPPORTUNITIES ARE TO BE FURTHER
01:27:36.017 --> 01:27:38.620
EXPLORED.
01:27:38.686 --> 01:27:39.988
YEAH I I YEAH I BELIEVE SO I
01:27:40.054 --> 01:27:42.857
BELIEVE THAT THAT'S IT'S AN OPEN
01:27:42.924 --> 01:27:43.691
A POTENTIALLY VERY INNOVATIVE
01:27:43.758 --> 01:27:44.292
WAY OF HELPING OFFSET SOME OF
01:27:44.359 --> 01:27:45.159
THE THE COST FOR SYSTEM THAT
01:27:45.226 --> 01:27:46.961
NEEDS ALL THE HELP I CAN GET IN
01:27:47.028 --> 01:27:49.564
TERMS OF REDUCING COSTS.
01:27:49.631 --> 01:27:50.164
DO YOU --
01:27:50.231 --> 01:27:53.968
DID YOU EXAMINED --
01:27:54.035 --> 01:27:56.471
THE TUNNELING ASPECT ENTERS
01:27:56.537 --> 01:27:59.073
EXPEDITING --
01:27:59.140 --> 01:28:00.708
CONSTRUCTION TIME LINES THROUGH
01:28:00.775 --> 01:28:02.644
THE TUNNELING OF THE TOTALING
01:28:02.710 --> 01:28:08.683
ELLO ELEMENTS OF THE PROJECT.
01:28:08.750 --> 01:28:09.183
SINCE I NOTICE ARE NOT
01:28:09.250 --> 01:28:09.751
SPECIFICALLY WE BEYOND THE
01:28:09.817 --> 01:28:10.418
KNOWLEDGE IN THAT TUNNELING IS
01:28:10.485 --> 01:28:11.152
GOING TO BE SIGNIFICANT OF A
01:28:11.219 --> 01:28:12.387
SIGNIFICANTLY MORE TECHNICAL
01:28:12.453 --> 01:28:13.788
DIFFICULTY THAN EXISTING
01:28:13.855 --> 01:28:14.355
CONSTRUCTION WHICH HAS BEEN
01:28:14.422 --> 01:28:14.889
PLAYING WITH THE LAYS.
01:28:14.956 --> 01:28:16.391
THE OBVIOUSLY EXPRESSED CONCERN
01:28:16.457 --> 01:28:18.259
IN THE REPORT THAT --
01:28:18.326 --> 01:28:19.394
YOU KNOW THE PAST COULD COULD
01:28:19.460 --> 01:28:20.662
REOCCUR REEKER IN TERMS OF
01:28:20.728 --> 01:28:22.196
DELAYS TO THE PLANNED SCHEDULE
01:28:22.263 --> 01:28:23.431
FOR TUNNELING BUT WE DON'T HAVE
01:28:23.498 --> 01:28:25.033
ANY TECHNICAL RECOMMENDATIONS
01:28:25.099 --> 01:28:26.267
ASSOCIATED WITH THOSE ALIGNMENTS.
01:28:26.334 --> 01:28:31.272
SO FURTHER EXPLORATION.
01:28:31.339 --> 01:28:31.873
CERTAINLY PUT THAT IN THAT
01:28:31.939 --> 01:28:33.608
CATEGORY --
01:28:33.675 --> 01:28:37.211
WE HAVE SP ONE OH NO LOG THE
01:28:37.278 --> 01:28:39.747
VOTERS APPROVED THE BY REJECTING
01:28:39.814 --> 01:28:42.684
THE AND INITIATIVE --
01:28:42.750 --> 01:28:45.953
WE HAVE AN INSPECTOR GENERAL --
01:28:46.020 --> 01:28:46.921
DO YOU THINK YOUR WROTE HAVE YOU
01:28:46.988 --> 01:28:49.691
HAVE YOU OF CONSIDERED --
01:28:49.757 --> 01:28:52.694
THE INSPECTOR GENERAL --
01:28:52.760 --> 01:28:55.063
ROLE IN OVERSIGHT ON HIGH SPEED
01:28:55.129 --> 01:28:57.632
RAIL AUTHORITY.
01:28:57.699 --> 01:29:00.201
OF FUNDING AND WITHOUT --
01:29:00.268 --> 01:29:02.870
BE OF ASSISTANCE.
01:29:02.937 --> 01:29:04.105
TO US THE LEGISLATORS TO GET
01:29:04.172 --> 01:29:05.973
REPORTS.
01:29:06.040 --> 01:29:08.309
ON THE HIGH SPEED RAIL LIKE THEY
01:29:08.376 --> 01:29:09.644
REPORT ON OLDER TRANSPORTERS
01:29:09.711 --> 01:29:12.180
SUPPOSED TO REPORT ON ALL.
01:29:12.246 --> 01:29:14.782
TRANSPORTATION PROJECTS --
01:29:14.849 --> 01:29:16.818
TO OUR COMMITTEE --
01:29:16.884 --> 01:29:18.386
OUR COMMUNITIES OF BUDGET
01:29:18.453 --> 01:29:22.924
COMMITTEES AND POLICY COMMITTEES.
01:29:22.990 --> 01:29:24.592
THE AFFECTED SPECTER GENERAL
01:29:24.659 --> 01:29:27.095
SHOULD PLAY A ROLE IN OVERSIGHT.
01:29:27.161 --> 01:29:29.197
ON HIGH SPEED RAIL PROJECT.
01:29:29.263 --> 01:29:30.364
ABSOLUTELY I THINK HAVING ANY
01:29:30.431 --> 01:29:32.633
EXTERNAL THEY WOULD BE EXTERNAL
01:29:32.700 --> 01:29:34.368
TO THE AUTHORITY AND BE WOULD BE
01:29:34.435 --> 01:29:36.137
REPORTING TO THE LEGISLATURE AND
01:29:36.204 --> 01:29:37.672
THEY WOULD BE ABLE.
01:29:37.739 --> 01:29:39.340
TO DO CONDUCT WORK MORE
01:29:39.407 --> 01:29:40.408
FREQUENTLY --
01:29:40.475 --> 01:29:44.879
pSUPPORT I THINK THAT'S A AN
01:29:44.946 --> 01:29:46.647
EXCELLENT IDEA THAT THEY MORE
01:29:46.714 --> 01:29:48.216
OVERSIGHT AND MORE FREQUENT.
01:29:48.282 --> 01:29:49.517
CHECKING IN WITH THE AUTHORITY
01:29:49.584 --> 01:29:51.786
AND HAVING THAT EXTERNAL AUDITOR
01:29:51.853 --> 01:29:53.454
BEING ABLE TO REPORT TO YOU --
01:29:53.521 --> 01:29:56.524
AT THEIR PERSPECTIVE ON HOW WELL
01:29:56.591 --> 01:29:57.725
THE AUTHORITY AS A DRESSING
01:29:57.792 --> 01:29:59.093
RECOMMENDATIONS ADDRESSING
01:29:59.160 --> 01:30:00.828
DIRECTIVES FROM THE LEGISLATURE
01:30:00.895 --> 01:30:02.630
I THINK IS A POSITIVE --
01:30:02.697 --> 01:30:04.298
A POSITIVE THING FOR THE STATE
01:30:04.365 --> 01:30:06.501
THE THE OF THE FORTY AN
01:30:06.567 --> 01:30:07.635
INSPECTOR GENERAL WAS PRETTY
01:30:07.702 --> 01:30:10.905
BROAD WE WE LEFT IT BROUGHT ON
01:30:10.972 --> 01:30:12.707
PURPOSE.
01:30:12.774 --> 01:30:14.709
CORRECT JIM AND IT WAS DONE.
01:30:14.776 --> 01:30:16.778
IT SAID ANY TRANSPORTATION
01:30:16.844 --> 01:30:18.513
DOLLARS IN THE CALIFORNIA.
01:30:18.579 --> 01:30:20.548
SO THE INSPECTOR GENERAL DOESN'T
01:30:20.615 --> 01:30:23.251
NEED ANY LEGISLATIVE.
01:30:23.317 --> 01:30:25.453
CHANGES OTHER THAN.
01:30:25.520 --> 01:30:28.156
THE WE REQUEST AND I I WOULD
01:30:28.222 --> 01:30:29.791
REQUESTED MAYBE.
01:30:29.857 --> 01:30:30.691
OUR COMMITTEES WOULD REQUEST THE
01:30:30.758 --> 01:30:33.060
INSPECTOR GENERAL TO ASSIST US
01:30:33.127 --> 01:30:35.096
IN OVERSIGHT ON HIGH SPEED RAIL
01:30:35.163 --> 01:30:36.297
PROJECT CERTAINLY IN ANYTHING
01:30:36.364 --> 01:30:38.132
OUR OFFICE COULD DO TO ASSIST
01:30:38.199 --> 01:30:39.634
THE INSPECTOR GENERAL AS FAR AS
01:30:39.700 --> 01:30:41.202
WORK THAT WE'VE DONE IN THE PAST
01:30:41.269 --> 01:30:43.204
OR WORK THAT THEY ARE INTENDING
01:30:43.271 --> 01:30:46.440
TO DO WE'D BE HAPPY.
01:30:46.507 --> 01:30:47.041
TO PROVIDE ANY SUPPORT WE CAN
01:30:47.108 --> 01:30:47.842
THANK YOU.
01:30:47.909 --> 01:30:48.843
I JUST GOT A CLARIFICATION THAT
01:30:48.910 --> 01:30:50.845
WE DID FINALIZING WAS FOR
01:30:50.912 --> 01:30:52.180
CALTRANS ONLY INSPECTOR GENERAL
01:30:52.246 --> 01:30:54.282
BUT WITH LEGISLATION WE CAN
01:30:54.348 --> 01:30:55.216
BROADEN.
01:30:55.283 --> 01:30:57.752
IT WAS IT WAS WRITTEN IN A WAY
01:30:57.819 --> 01:31:00.922
WHERE IT WAS CALTRANS.
01:31:00.988 --> 01:31:02.290
BUT ANY FUNDS.
01:31:02.356 --> 01:31:02.723
THAT WERE --
01:31:02.790 --> 01:31:04.792
APPROVED.
01:31:04.859 --> 01:31:07.895
SO THIS WORK ON IN MY ROOM MY
01:31:07.962 --> 01:31:11.666
WAY I THINK WE ALREADY OUT THERE.
01:31:11.732 --> 01:31:13.801
HOOKS INTO --
01:31:13.868 --> 01:31:14.735
IF YOU WANT TO SET UP
01:31:14.802 --> 01:31:15.036
[inaudible]
01:31:15.102 --> 01:31:16.204
ONE THANK YOU [inaudible]
01:31:16.270 --> 01:31:18.873
MISTER PATTERSON --
01:31:18.940 --> 01:31:19.807
I WANTED TO ASK A COUPLE
01:31:19.874 --> 01:31:20.141
QUESTIONS --
01:31:20.208 --> 01:31:21.776
THE BE SIMILAR QUESTIONS THAT I
01:31:21.843 --> 01:31:23.444
ASKED TO THE AUTHORITY FIRST OF
01:31:23.511 --> 01:31:25.112
ALL WITH RESPECT TO THE MEETING
01:31:25.179 --> 01:31:27.715
THE DEADLINE --
01:31:27.782 --> 01:31:29.383
WE'VE GOT TWO ISSUES HERE THAT
01:31:29.450 --> 01:31:31.252
ARE OF DEEP CONCERN FOR ME I
01:31:31.319 --> 01:31:32.486
THINK AND I THINK YOU HAVE
01:31:32.553 --> 01:31:33.554
EXPRESSED AS WELL.
01:31:33.621 --> 01:31:35.323
THE EARLY USE OF THE FEDERAL
01:31:35.389 --> 01:31:37.825
MONEY WHICH I THINK EXPRESSLY
01:31:37.892 --> 01:31:39.560
DEMONSTRATES THAT.
01:31:39.627 --> 01:31:41.662
I THINK THE FEDERAL WHAT IT IS
01:31:41.729 --> 01:31:43.297
GOING TO HAVE --
01:31:43.364 --> 01:31:44.465
GRAVE CONCERNS ABOUT THAT.
01:31:44.532 --> 01:31:47.835
AND SECONDLY THAT THAT THE THE
01:31:47.902 --> 01:31:49.303
DEADLINE THAT THAT THE THE TIME
01:31:49.370 --> 01:31:50.738
HERE.
01:31:50.805 --> 01:31:52.473
YOUR AT YOUR SAYING THAT IT
01:31:52.540 --> 01:31:54.475
NEEDS TO YOU NEED TO DOUBLE.
01:31:54.542 --> 01:31:57.979
THE CONSTRUCTION IN FOUR YEARS.
01:31:58.045 --> 01:32:00.681
THERE IS MY MIND NO INDICATION
01:32:00.748 --> 01:32:03.084
THAT PREVIOUS HISTORY AND
01:32:03.150 --> 01:32:04.385
EXPERIENCE.
01:32:04.452 --> 01:32:06.187
CAN EVEN BEGIN TO APPROACH THAT
01:32:06.254 --> 01:32:08.322
EXPECTATION SO I THINK THERE IS
01:32:08.389 --> 01:32:11.425
A SERIOUS QUESTION GOING FORWARD.
01:32:11.492 --> 01:32:13.861
ABOUT THE CONSEQUENCES OF THE
01:32:13.928 --> 01:32:15.997
FEDERAL AUDIT.
01:32:16.063 --> 01:32:19.333
WHAT IS YOUR CONFIDENCE LEVEL?
01:32:19.400 --> 01:32:20.968
IN THE ABILITY.
01:32:21.035 --> 01:32:23.471
OF THIS STORY UNDER YOUR AUDIT
01:32:23.537 --> 01:32:25.773
AND WHAT YOU KNOW TODAY. TO MEET
01:32:25.840 --> 01:32:28.075
THAT DEADLINE AND AVOID THE
01:32:28.142 --> 01:32:29.844
POTENTIAL.
01:32:29.911 --> 01:32:32.513
OF CLAWBACK IN OTHER WORDS.
01:32:32.580 --> 01:32:36.484
WHAT IS PLAN BE?
01:32:36.550 --> 01:32:37.718
WELL FIRST OF ALL I WOULD DEFER
01:32:37.785 --> 01:32:39.086
TO THE AUTHORITY FOR PLAN B. --
01:32:39.153 --> 01:32:40.421
ANSWERING YOUR QUESTION THAT'S
01:32:40.488 --> 01:32:42.423
WHY WE RAISED IT AS A CONCERN IN
01:32:42.490 --> 01:32:44.191
THE AUDIT REPORT WE WERE VERY
01:32:44.258 --> 01:32:45.059
CONCERNED.
01:32:45.126 --> 01:32:46.994
AND AND AS I INDICATED IN MY
01:32:47.061 --> 01:32:48.329
OPENING COMMENTS THE THE
01:32:48.396 --> 01:32:49.630
AUTHORITY ITSELF WHEN IT
01:32:49.697 --> 01:32:51.699
PRESENTED THEIR PLAN TO THE
01:32:51.766 --> 01:32:52.700
BOARD --
01:32:52.767 --> 01:32:55.202
QUALIFIED AND SAID THIS OF
01:32:55.269 --> 01:32:56.871
SCHEDULE FOR US TO BE ABLE TO
01:32:56.938 --> 01:32:58.005
MEET THE FEDERAL DEADLINE OR TO
01:32:58.072 --> 01:33:00.141
MEET THE MARCH TWENTY TWENTY TWO
01:33:00.207 --> 01:33:00.775
WHICH IS THE DEADLINE THEY'VE
01:33:00.841 --> 01:33:02.243
SET FOR THEMSELVES BUT THE
01:33:02.310 --> 01:33:04.745
FEDERAL DEADLINE IS DECEMBER.
01:33:04.812 --> 01:33:05.413
TWENTY TWENTY TWO AND THAT'S WHY
01:33:05.479 --> 01:33:06.881
WE DID THE ANALYSIS TO
01:33:06.948 --> 01:33:08.716
DEMONSTRATE. TO BE ABLE TO
01:33:08.783 --> 01:33:10.184
ACCOMPLISH THIS THE AUTHORITY
01:33:10.251 --> 01:33:12.320
HAS TO YOU KNOW WORK TWICE AS
01:33:12.386 --> 01:33:14.789
QUICKLY AS IT HAS THUS FAR AND
01:33:14.855 --> 01:33:16.958
WE HAVE WE HAVE SERIOUS CONCERNS
01:33:17.024 --> 01:33:18.125
ABOUT THAT.
01:33:18.192 --> 01:33:19.126
WHETHER TO CHI MOBILE SO THEY'RE
01:33:19.193 --> 01:33:19.894
DOING THE APT DESCRIPTION HERE
01:33:19.961 --> 01:33:21.896
IS ONGOING SERIOUS CONCERNS
01:33:21.963 --> 01:33:22.830
GOING FORWARD TO MEET THE
01:33:22.897 --> 01:33:25.166
DEADLINE THAT IS THAT IS A FAIR
01:33:25.232 --> 01:33:28.970
ASSESSMENT OF ONE ON ONE ALSO.
01:33:29.036 --> 01:33:30.104
THE THE THE GENERAL --
01:33:30.171 --> 01:33:32.907
VALUE PROPOSITION --
01:33:32.974 --> 01:33:34.742
OF HIGH SPEED RAIL THAT WAS --
01:33:34.809 --> 01:33:37.411
PRESENTED TO THE VOTERS.
01:33:37.478 --> 01:33:38.913
I THINK CAN'T THREE ELEMENTS TO
01:33:38.980 --> 01:33:41.315
IT SPEED TIME AND
01:33:41.382 --> 01:33:42.149
COMPETITIVENESS.
01:33:42.216 --> 01:33:43.617
WE ARE NOW HERE [inaudible]
01:33:43.684 --> 01:33:45.453
YEARS LATER.
01:33:45.519 --> 01:33:48.489
THE SPEEDS ARE GOING DOWN.
01:33:48.556 --> 01:33:50.524
THE TIME IS GOING UP.
01:33:50.591 --> 01:33:52.293
AND THE COMPETITIVENESS WITH
01:33:52.360 --> 01:33:54.161
OTHER FORMS OF TRANSPORTATION I
01:33:54.228 --> 01:33:56.030
THINK IS GOING DOWN.
01:33:56.097 --> 01:33:58.499
AS A RESULT.
01:33:58.566 --> 01:34:03.904
THE ARC OF THIS PROJECT APPEARS.
01:34:03.971 --> 01:34:04.939
TO ME.
01:34:05.006 --> 01:34:06.841
THAT IT SIMPLY.
01:34:06.907 --> 01:34:09.276
IS NOT DELIVERING.
01:34:09.343 --> 01:34:11.345
THE KIND OF SPEED TIME AND
01:34:11.412 --> 01:34:13.647
COMPETITIVE ADVANTAGE THAT WAS
01:34:13.714 --> 01:34:17.651
PROMISED DO YOU HOLD SIMILAR
01:34:17.718 --> 01:34:19.086
SERIOUS CONCERNS.
01:34:19.153 --> 01:34:22.390
ABOUT THE SPEED TIME AND
01:34:22.456 --> 01:34:23.524
COMPETITIVENESS IF YOU DON'T
01:34:23.591 --> 01:34:25.092
HAVE SPEEDS AND IF YOU DON'T
01:34:25.159 --> 01:34:26.527
HAVE COMPETITIVE TIMES.
01:34:26.594 --> 01:34:27.528
EACH YEAR THERE'S NOT THERE AT
01:34:27.595 --> 01:34:29.030
THE THE MARKET PLACE ISN'T GOING
01:34:29.096 --> 01:34:30.331
TO CHIU SOMETHING WHERE THEY CAN
01:34:30.398 --> 01:34:31.432
STILL FLY FROM LA TO SAN
01:34:31.499 --> 01:34:32.266
FRANCISCO --
01:34:32.333 --> 01:34:34.502
IN ON AN AIRPLANE FOR HALF THE
01:34:34.568 --> 01:34:35.903
COST.
01:34:35.970 --> 01:34:36.537
WE NEED THIS IS THAT THIS IS A
01:34:36.604 --> 01:34:38.039
COMPETITIVENESS.
01:34:38.105 --> 01:34:40.608
VALUE PROPOSITION THAT I THINK
01:34:40.674 --> 01:34:41.909
THE THE LONGER THAT THE
01:34:41.976 --> 01:34:43.244
AUTHORITY HAS MADE THESE
01:34:43.310 --> 01:34:45.413
DECISIONS. TO SCALE BACK AND
01:34:45.479 --> 01:34:47.314
SCALED DOWN --
01:34:47.381 --> 01:34:50.518
THE SPEEDS PUSH THE TIME'S UP IN
01:34:50.584 --> 01:34:51.952
THIS ISSUE THAT'S GOING.
01:34:52.019 --> 01:34:54.622
TO IMPACT THE SUSTAINABILITY OF
01:34:54.688 --> 01:34:56.590
THIS PROJECT GOING FOR THIS ARC
01:34:56.657 --> 01:35:00.361
CONCERNS ME AND DOES IT CONCERN --
01:35:00.428 --> 01:35:01.862
YOU IS THE AUDITOR.
01:35:01.929 --> 01:35:03.330
YES IT DOES --
01:35:03.397 --> 01:35:04.665
THAT'S WHY WE POINTED OUT IN THE
01:35:04.732 --> 01:35:07.201
REPORT MISTER PATTERSON THAT THE
01:35:07.268 --> 01:35:09.036
EXACTLY WHAT YOU WERE REFERRING
01:35:09.103 --> 01:35:09.970
TO AS FAR AS THE NUMBER OF
01:35:10.037 --> 01:35:11.505
TRAINS EVEN THOUGH BLENDING.
01:35:11.572 --> 01:35:13.607
HAS HAD A POSITIVE IMPACT ON THE
01:35:13.674 --> 01:35:15.609
COST OF THE PROJECT BY REDUCING
01:35:15.676 --> 01:35:16.343
COSTS.
01:35:16.410 --> 01:35:18.312
THEY FLIP SIDE IS THAT YOU HAVE
01:35:18.379 --> 01:35:19.613
FEWER TRAINS THEY'RE GOING TO BE
01:35:19.680 --> 01:35:21.015
ABLE TO RUN.
01:35:21.082 --> 01:35:22.016
WE CLEARLY DON'T KNOW AT THIS
01:35:22.083 --> 01:35:22.883
POINT THE AUTHORITIES
01:35:22.950 --> 01:35:24.518
ACKNOWLEDGE UNTIL IT IT IT'S
01:35:24.585 --> 01:35:25.753
FINALIZED THEY WON'T KNOW THE
01:35:25.820 --> 01:35:27.321
FULL IMPACT OF THAT AS FAR AS
01:35:27.388 --> 01:35:28.722
THE NUMBER OF TRAINS THAT WILL
01:35:28.789 --> 01:35:30.291
BE ABLE TO RUN --
01:35:30.357 --> 01:35:32.193
AS FAR AS THAT TRACK THAT
01:35:32.259 --> 01:35:32.993
THEY'RE SHARING WITH OTHER
01:35:33.060 --> 01:35:35.696
OPERATORS AND CERTAINLY THE
01:35:35.763 --> 01:35:36.664
COMPETITIVENESS.
01:35:36.730 --> 01:35:38.566
WHEN SOMEONE'S MAKING A CONSUMER
01:35:38.632 --> 01:35:40.067
IS MAKING A DECISION?
01:35:40.134 --> 01:35:42.103
AS TO DO I TAKE THE HIGH SPEED
01:35:42.169 --> 01:35:43.437
RAIL WHICH IS GONNA TAKE TWO AND
01:35:43.504 --> 01:35:45.172
A HALF HOURS --
01:35:45.239 --> 01:35:47.141
OR TWO HOURS FORTY MINUTES --
01:35:47.208 --> 01:35:51.178
AND COST X. AMOUNT COMPARED TO
01:35:51.245 --> 01:35:52.780
LOS ANGELES SO I THINK --
01:35:52.847 --> 01:35:54.115
THE FACT THAT THERE HAVE BEEN
01:35:54.181 --> 01:35:56.150
SOME CHANGES WITH RESPECT TO
01:35:56.217 --> 01:35:58.185
SPEED NUMBER OF TRAINS
01:35:58.252 --> 01:36:01.122
AVAILABILITY --
01:36:01.188 --> 01:36:02.123
SHOULD CONCERN --
01:36:02.189 --> 01:36:04.625
THE STATE OF CALIFORNIA AND
01:36:04.692 --> 01:36:05.092
CONSTITUENTS THANK YOU
01:36:05.159 --> 01:36:09.930
APPRECIATE.
01:36:09.997 --> 01:36:13.234
MICHELLE I HAVE A FEW QUESTIONS --
01:36:13.300 --> 01:36:14.635
YOU START OFF YOUR PRESENTATION --
01:36:14.702 --> 01:36:17.605
BY.
01:36:17.671 --> 01:36:19.073
STATING THAT WHAT ONE OF YOUR
01:36:19.140 --> 01:36:21.709
KEY FINDINGS WAS CONTRACTORS
01:36:21.775 --> 01:36:22.676
OVERSEEING CONTRACTORS --
01:36:22.743 --> 01:36:24.311
AND THAT.
01:36:24.378 --> 01:36:27.248
THAT COULD LEAD TO A POTENTIAL
01:36:27.314 --> 01:36:27.848
CONFLICT OF INTEREST.
01:36:27.915 --> 01:36:29.750
ARM.
01:36:29.817 --> 01:36:33.020
AND YOU TALK ABOUT --
01:36:33.087 --> 01:36:34.588
THEY NEED TO HIRE STATE
01:36:34.655 --> 01:36:36.557
EMPLOYEES RATHER THAN THE
01:36:36.624 --> 01:36:38.192
CONTRACTOR TO TRY TO AVOID THAT
01:36:38.259 --> 01:36:40.961
CONFLICT OF INTEREST.
01:36:41.028 --> 01:36:44.098
IN TERMS OF THE RDP CONSULTANTS --
01:36:44.165 --> 01:36:47.034
THE THE RAIL DELIVERY PARTNER
01:36:47.101 --> 01:36:48.002
CONSULTANTS --
01:36:48.068 --> 01:36:49.370
THE DO YOU DISCUSS IN IN YOUR
01:36:49.436 --> 01:36:51.105
REPORT.
01:36:51.172 --> 01:36:56.577
WHO THEY ARE OR HOW MANY?
01:36:56.644 --> 01:36:57.545
THAT'S CORRECT SURE WE DO WE DO
01:36:57.611 --> 01:36:58.179
DISCUSS THE RTP IN A NUMBER OF
01:36:58.245 --> 01:37:00.681
CONTACTS --
01:37:00.748 --> 01:37:01.282
I'D HAVE TO REFER TO SPECIFIC
01:37:01.348 --> 01:37:02.149
NUMBER IN THE REPORT BUT THERE
01:37:02.216 --> 01:37:04.185
OR OVER THREE HUNDRED OF THOSE
01:37:04.251 --> 01:37:05.186
POSITIONS --
01:37:05.252 --> 01:37:06.854
AS OF THE TIME OF OUR REVIEW
01:37:06.921 --> 01:37:09.790
THAT ARE STAFFED BY THE RTP
01:37:09.857 --> 01:37:11.926
CONSISTING OF A CONSULTING FIRM
01:37:11.992 --> 01:37:14.428
AND ITS SUBCONTRACTORS --
01:37:14.495 --> 01:37:15.029
SPECTOR THE THE CONFLICT OF
01:37:15.095 --> 01:37:16.163
INTEREST SPECIFICALLY THE WAY WE
01:37:16.230 --> 01:37:18.032
SAW THAT MANIFESTING ITSELF WAS
01:37:18.098 --> 01:37:18.599
THAT.
01:37:18.666 --> 01:37:20.801
IN A IN SITUATIONS IN WHICH
01:37:20.868 --> 01:37:23.270
STATE EMPLOYEE CONTRACT MANAGERS
01:37:23.337 --> 01:37:24.171
WERE --
01:37:24.238 --> 01:37:25.039
BASICALLY DELEGATING OR
01:37:25.105 --> 01:37:26.507
DEFERRING THEIR RESPONSIBILITY
01:37:26.574 --> 01:37:28.809
THEY WERE THEY WERE DOING IT TOO
01:37:28.876 --> 01:37:30.477
RT P. CONSULTANT PROJECT
01:37:30.544 --> 01:37:31.979
MANAGERS IN THE FIELD WHO ARE
01:37:32.046 --> 01:37:33.380
WORKING HAND IN HAND WITH THE
01:37:33.447 --> 01:37:34.682
WITH THE CONTRACTORS.
01:37:34.748 --> 01:37:36.750
THE YOU KNOW THE CONTRACTORS OF
01:37:36.817 --> 01:37:39.019
ORIGIN THERE --
01:37:39.086 --> 01:37:42.823
AND THE COVER IS ITSELF WHEN THE
01:37:42.890 --> 01:37:43.357
OVERSIGHT BODY THAT THE
01:37:43.424 --> 01:37:44.425
AUTHORITY HAS CONSTRUCTED A
01:37:44.491 --> 01:37:46.026
WHOLE CONTRACT MANAGERS
01:37:46.093 --> 01:37:46.627
ACCOUNTABLE THAT IS THE STATE
01:37:46.694 --> 01:37:47.461
WORKERS.
01:37:47.528 --> 01:37:49.964
WOULD NEED TO STEP IN AND YOU
01:37:50.030 --> 01:37:51.065
KNOW INTERVENE IN INSTANCES
01:37:51.131 --> 01:37:51.932
WHERE STATE WORKERS WERE OVER
01:37:51.999 --> 01:37:53.701
RELIANT ON RT P. CONSULTANTS
01:37:53.767 --> 01:37:56.804
HOWEVER THE OVERSIGHT.
01:37:56.870 --> 01:37:57.338
PERFORMING OVERSIGHT WITH
01:37:57.404 --> 01:37:58.806
THEMSELVES ALREADY CONSULTANT SO
01:37:58.872 --> 01:38:00.140
TO US THAT CREATED A POTENTIAL
01:38:00.207 --> 01:38:02.009
CONFLICT.
01:38:02.076 --> 01:38:04.178
SO A BIT BUT I MEAN WHO WHO WHO
01:38:04.245 --> 01:38:05.980
ARE THESE ARE TO BE CONSULTANTS
01:38:06.046 --> 01:38:08.482
OR ARE THEY ALL EMPLOYED BY ONE
01:38:08.549 --> 01:38:11.118
FIRM IS IN MULTIPLE FIRMS.
01:38:11.185 --> 01:38:12.386
W. S. P. USE YOU ESSAYS THE
01:38:12.453 --> 01:38:14.655
CONTRACT HOLDER BUT THEY THEY
01:38:14.722 --> 01:38:16.423
SUBCONTRACT WITH MANY OTHER
01:38:16.490 --> 01:38:18.325
DIFFERENT TYPES OF ORGANIZATIONS
01:38:18.392 --> 01:38:20.894
ARE COMPANIES IN AND BRING STAFF
01:38:20.961 --> 01:38:23.197
AND AS NEEDED.
01:38:23.264 --> 01:38:25.266
OKAY AND HAVE YOU SEEN ANY
01:38:25.332 --> 01:38:27.935
EVIDENCE OF ANY OF THESE.
01:38:28.002 --> 01:38:30.704
RTP CONSULTANTS --
01:38:30.771 --> 01:38:33.340
BEING HELD ACCOUNTABLE FOR COST
01:38:33.407 --> 01:38:36.210
OVERRUNS OR PROJECT DELAYS.
01:38:36.277 --> 01:38:37.278
NO SIR WE WE DISCUSSED IN THE
01:38:37.344 --> 01:38:39.146
REPORT THAT THE CONTRACT MANAGER
01:38:39.213 --> 01:38:42.182
RESPONSIBLE FOR THE ITV CONTRACT
01:38:42.249 --> 01:38:42.783
OURS IS --
01:38:42.850 --> 01:38:44.652
GENERALLY UNABLE TO PROVIDE A
01:38:44.718 --> 01:38:46.987
KIND BASIC FOUNDATIONAL EVIDENCE
01:38:47.054 --> 01:38:48.088
RELATED TO THE ALREADY PIECE
01:38:48.155 --> 01:38:49.523
PERFORMANCE --
01:38:49.590 --> 01:38:51.292
FOR A TWO YEAR PERIOD THE
01:38:51.358 --> 01:38:52.626
CONTACT MANAGER WASN'T ABLE TO
01:38:52.693 --> 01:38:54.094
PROVIDE TO RECOVER ANY OF THE
01:38:54.161 --> 01:38:55.129
ACTUAL WORK PRODUCTS ARE
01:38:55.195 --> 01:38:56.263
DELIVERABLES AT THE ALREADY P.
01:38:56.330 --> 01:38:57.765
REPORTED SUBMITTING.
01:38:57.831 --> 01:39:01.468
THE AUTHORITY. TO BE CLEAR THE
01:39:01.535 --> 01:39:04.038
THE RT P. REPORTS EMITTING IT OR
01:39:04.104 --> 01:39:05.939
NOT AND PART OF THE PROBLEM IN
01:39:06.006 --> 01:39:07.308
REACHING THAT DETERMINATION IS
01:39:07.374 --> 01:39:08.942
THE POOR DOCUMENTATION ON THE
01:39:09.009 --> 01:39:10.477
PART OF THE AUTHORITY.
01:39:10.544 --> 01:39:11.812
SO THAT'S WHERE OUR FOCUS REALLY
01:39:11.879 --> 01:39:12.413
IS IS THAT THE IF IT'S THE
01:39:12.479 --> 01:39:14.648
AUTHORITIES ARE RESPONSIBLY TO
01:39:14.715 --> 01:39:16.183
HOLD THAT CONTRACTOR ACCOUNTABLE.
01:39:16.250 --> 01:39:18.085
AS IT STANDS NOW WERE UNABLE TO
01:39:18.152 --> 01:39:19.653
REALLY WEIGH IN ON THE
01:39:19.720 --> 01:39:21.021
EFFECTIVENESS OF THE RDP
01:39:21.088 --> 01:39:22.823
ACCEPTING NOTING INSTANCES WHERE
01:39:22.890 --> 01:39:24.124
THEY HAVE EXPERIENCED --
01:39:24.191 --> 01:39:25.726
DELAYS AND AND SOME COST
01:39:25.793 --> 01:39:27.594
OVERRUNS ASSOCIATED WITH THEIR
01:39:27.661 --> 01:39:29.730
THEIR WORK PLANS I MEAN I LIKE I
01:39:29.797 --> 01:39:31.598
CERTAINLY.
01:39:31.665 --> 01:39:36.770
APPRECIATE THE NUMEROUS --
01:39:36.837 --> 01:39:37.705
YOU KNOW.
01:39:37.771 --> 01:39:39.573
PASSAGES IN YOUR REPORT TO ARE
01:39:39.640 --> 01:39:41.709
YOU ARE YOU IDENTIFY THE THE THE
01:39:41.775 --> 01:39:42.676
SHORTCOMINGS IN TERMS OF THE
01:39:42.743 --> 01:39:44.511
DOCUMENTATION --
01:39:44.578 --> 01:39:46.146
BUT I I DIDN'T SEE.
01:39:46.213 --> 01:39:48.549
ANYTHING IN TERMS OF WHETHER ANY
01:39:48.615 --> 01:39:51.051
OF THESE RTP CONSULTANTS.
01:39:51.118 --> 01:39:54.321
WERE FIRED OR CHANGED AS A
01:39:54.388 --> 01:39:57.424
RESULT OF ANY COST OVERRUNS OR
01:39:57.491 --> 01:39:59.793
ANY PROJECT IN PLACE.
01:39:59.860 --> 01:40:02.029
SO THE THE THE COMPOSITION OF
01:40:02.096 --> 01:40:03.597
THE RT.
01:40:03.664 --> 01:40:04.665
EMPLOYEE GROUP AS A WHOLE WILL
01:40:04.732 --> 01:40:07.134
BE IN MORE OR LESS CONSTANT FLUX
01:40:07.201 --> 01:40:09.303
BASED ON THAT THE AT THE NEEDS
01:40:09.370 --> 01:40:11.105
OF THE THIRTY THAT.
01:40:11.171 --> 01:40:12.439
THE THE THE CRISTINA FIRM AND
01:40:12.506 --> 01:40:13.407
AND SO FORTH --
01:40:13.474 --> 01:40:14.575
IN TERMS OF ACCOUNTABILITY FOR
01:40:14.641 --> 01:40:16.110
PERFORMANCE SPECIFICALLY THOUGH
01:40:16.176 --> 01:40:17.478
KNOW HOW AS YOU SAID IN THE
01:40:17.544 --> 01:40:18.879
REPORT WE FOUND ONLY ONE
01:40:18.946 --> 01:40:19.313
INSTANCE --
01:40:19.380 --> 01:40:21.515
AMONG NEAR YOU TO WORK PLANS AND
01:40:21.582 --> 01:40:24.551
AND THE AUTHORITY HAD EVER EVEN
01:40:24.618 --> 01:40:25.586
ISSUED.
01:40:25.652 --> 01:40:27.788
A CORRECTIVE ACTION PLAN TO THE
01:40:27.855 --> 01:40:28.689
RT P. FOR AND I WAS FOR AN I. T.
01:40:28.756 --> 01:40:30.991
DELIVERABLE THAT WAS MANY YEARS
01:40:31.058 --> 01:40:32.159
IN THE IN THE WAY IN THE MAKING
01:40:32.226 --> 01:40:34.161
AND HAVEN'T HAD SEEN MANY MANY
01:40:34.228 --> 01:40:35.662
OVERRUNS AND DELAYS SO.
01:40:35.729 --> 01:40:36.864
THERE'S BEEN.
01:40:36.930 --> 01:40:38.632
A GENERAL LACK OF OF DOCUMENTED
01:40:38.699 --> 01:40:39.967
ACCOUNTABILITY AND FOR BY THE
01:40:40.033 --> 01:40:41.735
AUTHORITY FOR ITS CONTRACTORS AT
01:40:41.802 --> 01:40:42.369
LEAST IN TERMS OF THE CONTRACTS
01:40:42.436 --> 01:40:43.137
THAT WE REVIEWED.
01:40:43.203 --> 01:40:45.005
SO FOR THIS MULTI BILLION DOLLAR
01:40:45.072 --> 01:40:46.473
PROJECT --
01:40:46.540 --> 01:40:47.508
THAT IF THERE IS NOT ONLY THE
01:40:47.574 --> 01:40:49.243
NUMEROUS INSTANCES OF THE LACK
01:40:49.309 --> 01:40:52.179
OF DOCUMENTATION OF THE THAT
01:40:52.246 --> 01:40:54.047
THAT THE NATURE AND THE THAT THE
01:40:54.114 --> 01:40:55.682
QUALITY OF THE WORK BEING DONE.
01:40:55.749 --> 01:40:56.817
BUT THERE'S BEEN ONLY ONE
01:40:56.884 --> 01:40:59.186
CORRECTIVE ACTION ISSUED BY THE
01:40:59.253 --> 01:41:05.426
AUTHORITY OF FOR SUB.
01:41:05.492 --> 01:41:08.429
WHO UNSATISFACTORY PERFORMANCE?
01:41:08.495 --> 01:41:09.396
THAT IS CORRECT SIR INSOFAR AS
01:41:09.463 --> 01:41:11.698
THE THE CORRECTIVE ACTION PLAN
01:41:11.765 --> 01:41:13.634
IS IS A DOCUMENT OR THE RECOVERY
01:41:13.700 --> 01:41:14.902
PLAN THIS IS ALSO REFERRED TO AS
01:41:14.968 --> 01:41:15.936
A DOCUMENT.
01:41:16.003 --> 01:41:17.471
CONTEMPLATED BY THE POLICIES
01:41:17.538 --> 01:41:18.505
PROCEDURES TO THIRTY PUT IN
01:41:18.572 --> 01:41:20.674
PLACE THAT STATE STIPULATE TO
01:41:20.741 --> 01:41:22.443
THE CONTRACT MANAGER IF
01:41:22.509 --> 01:41:24.144
PERFORMANCES SIGNIFICANT BEHIND
01:41:24.211 --> 01:41:26.780
SCHEDULE OR OF A POOR QUALITY IS
01:41:26.847 --> 01:41:29.783
YOUR RESPONSIBILITY.
01:41:29.850 --> 01:41:31.685
TO WORK WITH THE CONTRACT TO IN.
01:41:31.752 --> 01:41:32.719
TWO TO TO DEVELOP THIS PLAN TO
01:41:32.786 --> 01:41:33.387
HOLD THEM ACCOUNTABLE FOR FUTURE
01:41:33.454 --> 01:41:34.054
PERFORMANCE.
01:41:34.121 --> 01:41:35.222
OTHER WHAT WITH THE RISK BEING
01:41:35.289 --> 01:41:36.857
THAT IN THE ABSENCE OF THAT YOU
01:41:36.924 --> 01:41:38.325
CONTINUE TO POTENTIALLY PAY
01:41:38.392 --> 01:41:39.993
MISTAKEN TEAMS TO PAY FOR SUB
01:41:40.060 --> 01:41:43.263
PAR OR OR DELINQUENT WORK --
01:41:43.330 --> 01:41:44.798
I WILL SAY THAT.
01:41:44.865 --> 01:41:46.200
MORE BROADLY IN TERMS OF OUR
01:41:46.266 --> 01:41:48.936
REVIEW OF THESE NINE CONTRACTS
01:41:49.002 --> 01:41:49.770
WE ALSO SELL ONLY LIMITED
01:41:49.837 --> 01:41:51.238
INSISTED INSTANCES IN WHICH
01:41:51.305 --> 01:41:53.707
CONTRACT MANAGERS HAD DISPUTED.
01:41:53.774 --> 01:41:56.376
ANY PORTION OF ANY INVOICE AND
01:41:56.443 --> 01:41:57.644
FURTHER WHEN WE WHEN WE
01:41:57.711 --> 01:41:58.779
INVESTIGATED THOSE INSTANCES
01:41:58.846 --> 01:42:01.181
THIS IS ANOTHER AREA IN WHICH
01:42:01.248 --> 01:42:02.249
PERHAPS THEIR CREDIT IN THIS
01:42:02.316 --> 01:42:03.851
CASE THE THE ORIGINS OF THOSE
01:42:03.917 --> 01:42:05.719
DISPUTES WERE ACTUALLY FROM THE
01:42:05.786 --> 01:42:07.387
RT P. CONSULTANTS IN THE FIELD
01:42:07.454 --> 01:42:09.656
WORKING WITH THE CONTRACTORS SO --
01:42:09.723 --> 01:42:13.360
THAT'S ANOTHER EXAMPLE OF THE HE
01:42:13.427 --> 01:42:15.028
CERTAINLY WE YOU KNOW WE BELIEVE
01:42:15.095 --> 01:42:16.330
STRONGLY AS THE AUTHORITIES YOU
01:42:16.396 --> 01:42:17.498
KNOW CLAIMS TO IN ITS POLICIES
01:42:17.564 --> 01:42:18.999
AND PROCEDURES THAT RESPONSIBLE
01:42:19.066 --> 01:42:20.067
FOR IDENTIFYING AND FOLLOWING
01:42:20.133 --> 01:42:21.668
THROUGH ON THOSE SORTS OF
01:42:21.735 --> 01:42:22.336
QUALITY ISSUES NEED TO FALL TO
01:42:22.402 --> 01:42:23.437
THIS THE STATE.
01:42:23.504 --> 01:42:25.439
EMPLOYEE RESPONSIBLE FOR
01:42:25.506 --> 01:42:27.341
OVERSEEING CONTRACT.
01:42:27.407 --> 01:42:29.243
DID YOU SEE ANY --
01:42:29.309 --> 01:42:31.111
I I I KNOW THAT ONE OF YOUR
01:42:31.178 --> 01:42:32.279
RECOMMENDATIONS IS --
01:42:32.346 --> 01:42:34.448
TO IS FOR THE AUTHORITY.
01:42:34.515 --> 01:42:36.250
TO OF DEVELOP AND AND FURTHER
01:42:36.316 --> 01:42:41.655
SPECIFY --
01:42:41.722 --> 01:42:43.891
PERFORMANCE PARAMETERS --
01:42:43.957 --> 01:42:45.526
FOR CONTRACTORS THAT DOES THAT
01:42:45.592 --> 01:42:52.165
INCLUDE THE RT P. CONSULTANTS.
01:42:52.232 --> 01:42:52.699
SO IF I'M CORRECT YOUR AB
01:42:52.766 --> 01:42:54.635
REFERRING TO THE RECOMMENDATION
01:42:54.701 --> 01:42:56.103
REGARDING THE OKAY KIND OF LIKE
01:42:56.169 --> 01:42:58.138
IF CONTRACT MANAGERS THEMSELVES
01:42:58.205 --> 01:42:59.406
YEAH YEAH SO.
01:42:59.473 --> 01:43:00.440
THE THAT WOULD PERTAIN TO THE
01:43:00.507 --> 01:43:01.508
THE STATE EMPLOYEE THAT IS THE
01:43:01.575 --> 01:43:03.243
CONTRACT MANAGER FOR THAT
01:43:03.310 --> 01:43:04.411
CONTRACT TO FIX IT THAT IN THAT
01:43:04.478 --> 01:43:07.214
INDIVIDUAL IS NOT A CONTINUES.
01:43:07.281 --> 01:43:08.682
TO TO FAIL TO COMPLY WITH THE
01:43:08.749 --> 01:43:10.651
WRITTEN RULE OF THE POLICIES AND
01:43:10.717 --> 01:43:11.785
PROCEDURES THEN YES WE BELIEVE
01:43:11.852 --> 01:43:13.654
THAT INCREASED ACCOUNTABILITY
01:43:13.720 --> 01:43:14.288
FOR THOSE INDIVIDUALS NEEDS TO
01:43:14.354 --> 01:43:15.255
TAKE PLACE.
01:43:15.322 --> 01:43:16.990
WE WE BELIEVE THAT ASSOCIATED
01:43:17.057 --> 01:43:18.992
RECOMMENDATIONS SUCH AS ENSURING
01:43:19.059 --> 01:43:20.394
THAT DUTY STATEMENTS ALIGNED
01:43:20.460 --> 01:43:21.061
WITH WHAT THEY'RE EXPECTED TO DO
01:43:21.128 --> 01:43:22.329
WILL WILL ASSIST THE AUTHORITY
01:43:22.396 --> 01:43:23.830
IN AND HOLDING THEM ACCOUNTABLE
01:43:23.897 --> 01:43:26.033
WHICH AS WE AS WE DISCUSSED IN
01:43:26.099 --> 01:43:28.135
TERMS OF THE OVERSIGHT TODAY HAS
01:43:28.201 --> 01:43:30.203
NOT HAPPENED.
01:43:30.270 --> 01:43:30.904
THE D. HAVE YOU SEEN ANY
01:43:30.971 --> 01:43:32.372
EVIDENCE OF MEASURES OF
01:43:32.439 --> 01:43:33.941
ACCOUNTABILITY FOR THE RDP
01:43:34.007 --> 01:43:37.945
CONSULTANTS.
01:43:38.011 --> 01:43:38.946
AS AN ANSWER WE WE WE DID WE DID
01:43:39.012 --> 01:43:41.114
NOT APART FROM THE THE FORMAL
01:43:41.181 --> 01:43:42.616
THE RARE FORMAL INTERVENTION
01:43:42.683 --> 01:43:44.084
THAT OCCURRED FOR ONE SPECIFIC
01:43:44.151 --> 01:43:46.086
DELIVERABLE AND THAT WAS AND
01:43:46.153 --> 01:43:48.188
REALLY LIMITED IN IN TERMS OF
01:43:48.255 --> 01:43:49.957
OUR KNOWLEDGE. TO TO THE
01:43:50.023 --> 01:43:52.326
CREATION OF THAT RECOVERY PLAN
01:43:52.392 --> 01:43:54.795
BY WHICH THE RT P. HAD --
01:43:54.861 --> 01:43:56.129
TO EXES SPECIFY HOW WOULD HOW
01:43:56.196 --> 01:43:57.497
WOULD ADDRESS SHORTCOMINGS IN
01:43:57.564 --> 01:44:01.501
ITS WORK IN THAT AREA.
01:44:01.568 --> 01:44:02.970
EARLIER MR FONG ASK A QUESTION
01:44:03.036 --> 01:44:05.739
ABOUT WHETHER THIS IS TYPICAL OR
01:44:05.806 --> 01:44:07.908
NOT -- YOU
01:44:07.975 --> 01:44:13.847
KNOW THE FOR THIS LEVEL OF
01:44:13.914 --> 01:44:15.315
MEASURES OF ACCOUNTABILITY AND
01:44:15.382 --> 01:44:16.883
BEING.
01:44:16.950 --> 01:44:17.451
I I BELIEVE --
01:44:17.517 --> 01:44:19.219
MS HOW YOU YOU ANSWERED IT IT'S
01:44:19.286 --> 01:44:21.455
NOT TYPICAL TO RELY SO MUCH ON
01:44:21.521 --> 01:44:22.422
OUTSIDE CONTRACTORS BUT I MEAN
01:44:22.489 --> 01:44:23.690
IS [inaudible]
01:44:23.757 --> 01:44:26.927
WE'RE IT TO HELP US COMMITTEE
01:44:26.994 --> 01:44:28.028
TRY TO GET A SENSE OF THE I MEAN
01:44:28.095 --> 01:44:29.997
YOU KNOW IT IS IS IS IS PAR FOR
01:44:30.063 --> 01:44:32.332
THE COURSE OF WHETHER WE LIKE IT
01:44:32.399 --> 01:44:35.235
OR NOT IN IN IN TERMS OF PUBLIC
01:44:35.302 --> 01:44:39.106
PROJECTS OF THE SCALE OR ADD.
01:44:39.172 --> 01:44:40.540
YOU TALKED ABOUT THAT THE BRIDGE
01:44:40.607 --> 01:44:42.309
PROJECT IS A THE THE TOLL BRIDGE
01:44:42.376 --> 01:44:45.579
PROJECT AS AS ONE YOU KNOW A
01:44:45.646 --> 01:44:46.947
GOOD COMPARISON BUT IS THE DO
01:44:47.014 --> 01:44:49.883
YOU DO YOU HAVE ANY OF OPINION
01:44:49.950 --> 01:44:55.422
AS TO WELL AS I INDICATED --
01:44:55.489 --> 01:44:56.323
MISTER MURATSUCHI AND AND
01:44:56.390 --> 01:44:58.091
RESPONSE TO MR FUNG'S QUESTION
01:44:58.158 --> 01:45:00.260
THE THE THE VOLUME AND THE THE
01:45:00.327 --> 01:45:02.262
NUMBER OF INSTANCES THAT WE
01:45:02.329 --> 01:45:05.298
IDENTIFIED PROBLEMS IS IS MUCH
01:45:05.365 --> 01:45:06.533
BIGGER THAN WE TYPICALLY SEE IN
01:45:06.600 --> 01:45:08.669
AN ARTICLE OFTENTIMES A FOR
01:45:08.735 --> 01:45:10.904
GOING IN AND WE'RE LOOKING AT
01:45:10.971 --> 01:45:11.538
WORK AND WE'RE EXPECTING TO SEE
01:45:11.605 --> 01:45:13.640
DOCTOR.
01:45:13.707 --> 01:45:14.541
IMITATION BUT MAY NOT BE
01:45:14.608 --> 01:45:16.443
COMPLETE OR THERE MAY BE ONE OR
01:45:16.510 --> 01:45:18.912
TWO INSTANCES IN THIS SITUATION
01:45:18.979 --> 01:45:19.846
IT WAS.
01:45:19.913 --> 01:45:22.282
MULTIPLE INSTANCES AND NUMEROUS
01:45:22.349 --> 01:45:23.717
FOR EXAMPLE MISTER --
01:45:23.784 --> 01:45:24.851
MISTER REINER YOU TALKED ABOUT
01:45:24.918 --> 01:45:27.054
THE RTP CONSULTANTS AND THEY
01:45:27.120 --> 01:45:28.622
WERE THEY WORK I'M GONNA READ
01:45:28.689 --> 01:45:31.692
FROM MY NOTES BUT WE REVIEWED --
01:45:31.758 --> 01:45:32.826
A HUNDRED AND EIGHTY FOUR
01:45:32.893 --> 01:45:34.294
DELIVERABLES THAT RT P. CLAIMED
01:45:34.361 --> 01:45:35.796
THAT THEY HAD PROVIDED TO THE
01:45:35.862 --> 01:45:37.230
AUTHORITY THE AUTHORITY WAS
01:45:37.297 --> 01:45:38.865
MISSING A HUNDRED FORTY FIVE ANY
01:45:38.932 --> 01:45:40.934
EVIDENCE OF COMPLETION OF THOSE.
01:45:41.001 --> 01:45:44.004
PARTICULAR DELIVERABLES --
01:45:44.071 --> 01:45:44.671
FOUR HUNDRED FORTY FIVE THOSE IN
01:45:44.738 --> 01:45:45.939
THE STATE YOU KNOW THE PAYMENT
01:45:46.006 --> 01:45:48.075
TO RT P. WAS CLOSE TO TWO
01:45:48.141 --> 01:45:49.276
HUNDRED MILLION DOLLARS SO A
01:45:49.342 --> 01:45:51.311
PROJECT OF THIS SIGNIFICANCE WE
01:45:51.378 --> 01:45:52.646
WOULD EXPECT TO SEE.
01:45:52.713 --> 01:45:54.548
TIGHTER CONTROLS STRONGER
01:45:54.614 --> 01:45:56.450
OVERSIGHT BETTER FIDUCIARY
01:45:56.516 --> 01:45:58.719
RESPONSIBILITY ON ON THEIR
01:45:58.785 --> 01:45:59.886
BEHALF OF THAT ARE THE AUTHORITY
01:45:59.953 --> 01:46:00.454
ON BEHALF OF THE STATE OF
01:46:00.520 --> 01:46:01.621
CALIFORNIA.
01:46:01.688 --> 01:46:03.890
AND WE'RE JUST NOT SEEING THAT --
01:46:03.957 --> 01:46:05.992
AND IT IS IT IS CONCERNING
01:46:06.059 --> 01:46:07.294
BECAUSE OF THE AMOUNT OF THE
01:46:07.360 --> 01:46:08.995
DOLLARS THE SIGNIFICANCE OF THIS
01:46:09.062 --> 01:46:10.797
PARTICULAR PROJECT AND IT IS
01:46:10.864 --> 01:46:11.932
QUITE DIFFERENT THAN WHAT WE
01:46:11.998 --> 01:46:14.601
TYPICALLY SEE IN OTHER AUDITS --
01:46:14.668 --> 01:46:15.869
CERTAINLY AUDITS THAT WE'RE
01:46:15.936 --> 01:46:17.738
LOOKING AT THAT ARE NOT OF THIS
01:46:17.804 --> 01:46:19.940
PARTICULAR MAGNITUDE AS FAR AS
01:46:20.006 --> 01:46:21.408
THE INVESTMENT BY THE STATE OF
01:46:21.475 --> 01:46:23.076
CALIFORNIA THIS PEOPLE OF THE
01:46:23.143 --> 01:46:25.779
STATE OF CALIFORNIA AND
01:46:25.846 --> 01:46:27.414
CERTAINLY THE FEDERAL GOVERNMENT.
01:46:27.481 --> 01:46:30.083
SO YOU SAY YOU HAVE DOCUMENTED --
01:46:30.150 --> 01:46:31.585
TO NUMEROUS --
01:46:31.651 --> 01:46:32.853
INCIDENCE OF THE LACK OF THESE
01:46:32.919 --> 01:46:36.056
CONTROLS AND THE LACK OF TRANS --
01:46:36.123 --> 01:46:39.793
BASED ON YOUR OVERALL --
01:46:39.860 --> 01:46:41.261
EXPERIENCE WITH THIS AUDIT AS
01:46:41.328 --> 01:46:42.996
WELL AS YOUR PRIOR AUDIT --
01:46:43.063 --> 01:46:44.197
ON THE HIGH SPEED RAIL.
01:46:44.264 --> 01:46:47.334
DO YOU HAVE AN OPINION AS TO WHY
01:46:47.400 --> 01:46:50.303
THIS APPEARS TO BE.
01:46:50.370 --> 01:46:52.239
THE CASE BOY THAT'S A DIFFICULT
01:46:52.305 --> 01:46:54.307
QUESTION TO ANSWER BECAUSE IT IT
01:46:54.374 --> 01:46:56.076
IT IS A SITUATION WHERE WE'VE
01:46:56.143 --> 01:46:58.111
MADE RECOMMENDATIONS IN THE PAST
01:46:58.178 --> 01:47:00.213
THE THEIR OWN INTERNAL AUDITORS
01:47:00.280 --> 01:47:01.782
I THINK HAVING THE INSPECTOR
01:47:01.848 --> 01:47:03.784
GENERAL PARTICIPATE AS FAR AS AN
01:47:03.850 --> 01:47:05.819
EXTERNAL ENTITY --
01:47:05.886 --> 01:47:07.354
THAT WOULD BE ABLE TO REPORT TO
01:47:07.420 --> 01:47:09.156
THE LEGISLATURE I REALLY DON'T
01:47:09.222 --> 01:47:10.590
KNOW QUITE FRANKLY --
01:47:10.657 --> 01:47:12.692
WHY THEY'RE RELUCTANT TO BRING
01:47:12.759 --> 01:47:13.693
ON?
01:47:13.760 --> 01:47:16.596
STATE EMPLOYEES TO PROVIDE --
01:47:16.663 --> 01:47:18.331
OVERSIGHT IN PARTICULAR AREAS I
01:47:18.398 --> 01:47:19.666
KNOW MISTER MISTER FRAZIER
01:47:19.733 --> 01:47:21.601
MENTIONED YOU KNOW THE THEY'RE
01:47:21.668 --> 01:47:23.203
SUGGESTING THAT THE PROJECT OR
01:47:23.270 --> 01:47:24.437
SOMEBODY MAY NOT GOING TO WANT
01:47:24.504 --> 01:47:25.172
TO WORK.
01:47:25.238 --> 01:47:25.872
FOR THE HIGH SPEED RAIL
01:47:25.939 --> 01:47:27.908
AUTHORITY BECAUSE IT'S A LIMITED
01:47:27.974 --> 01:47:29.276
TERM COMPOSITION BUT WE'RE
01:47:29.342 --> 01:47:31.978
TALKING WE'RE TALKING OUT --
01:47:32.045 --> 01:47:32.612
TO TWENTY THIRTY THERE HAVE BEEN
01:47:32.679 --> 01:47:33.713
INDIVIDUALS WHO HAVE WORKED IN
01:47:33.780 --> 01:47:35.248
EXECUTIVE MANAGEMENT POSITIONS
01:47:35.315 --> 01:47:37.017
FOR THE AUTHORITY FOR YEARS NOW
01:47:37.083 --> 01:47:39.119
SO I DON'T I DON'T THINK THAT'S
01:47:39.186 --> 01:47:40.520
A VERY STRONG ARGUMENT THAT THE
01:47:40.587 --> 01:47:42.355
AUTHORITY CAN PUT FORTH --
01:47:42.422 --> 01:47:44.090
WITH RESPECT TO BRINGING ON
01:47:44.157 --> 01:47:46.459
STATE EMPLOYEES AND HAVING MORE
01:47:46.526 --> 01:47:48.428
OF A STATE OVERSIGHT --
01:47:48.495 --> 01:47:50.397
STRUCTURE FOR THIS PARTICULAR
01:47:50.463 --> 01:47:51.431
PROJECT.
01:47:51.498 --> 01:47:53.300
DO YOU HAVE ANY OPINION AS TO
01:47:53.366 --> 01:47:59.439
WHY -- MORE.
01:47:59.506 --> 01:48:01.241
INSTANCES OF RTP CONSULTANTS
01:48:01.308 --> 01:48:04.144
BEING HELD ACCOUNTABLE FOR THE
01:48:04.211 --> 01:48:04.778
COST OF RENTS FOR THE PROJECT IN
01:48:04.845 --> 01:48:06.646
THE I I I WOULD DEFER TO THE
01:48:06.713 --> 01:48:08.715
AUTHORITY I I DON'T KNOW WHAT
01:48:08.782 --> 01:48:10.150
THEIR PERSPECTIVE MAY BE I MEAN
01:48:10.217 --> 01:48:11.418
WHAT WE HAVE HEARD FROM OTHER
01:48:11.484 --> 01:48:13.220
STATE AGENCIES AND I CAN DIFFER
01:48:13.286 --> 01:48:14.020
STAFF WE'VE HEARD.
01:48:14.087 --> 01:48:15.355
THIS FROM THE AUTHORITY
01:48:15.422 --> 01:48:17.958
OFTENTIMES STATE PROJECTS BECOME
01:48:18.024 --> 01:48:19.526
SO DEPENDENT ON OUTSIDE
01:48:19.593 --> 01:48:21.094
CONSULTANTS WE'VE SEEN THIS AND
01:48:21.161 --> 01:48:22.229
I. T. PROJECTS FOR THE STATE OF
01:48:22.295 --> 01:48:23.463
CALIFORNIA WHERE.
01:48:23.530 --> 01:48:24.998
WE NEED TO HAVE THAT KNOWLEDGE
01:48:25.065 --> 01:48:26.333
TRANSFER WE'VE TALKED ABOUT THAT
01:48:26.399 --> 01:48:28.368
AND OTHER REPORTS AND YOU BECOME
01:48:28.435 --> 01:48:30.337
SO DEPENDENT ON EXTERNAL
01:48:30.403 --> 01:48:31.838
CONSULTANTS ARE OUTSIDE VENDORS.
01:48:31.905 --> 01:48:35.275
THAT YOUR YOUR RELUCTANT TO KIND
01:48:35.342 --> 01:48:37.010
OF CUT THE CORD AND TAKE OVER
01:48:37.077 --> 01:48:39.379
THE PROJECT OR CERTAINLY HAVE
01:48:39.446 --> 01:48:42.048
MORE OF A STATE ROLE SO I DON'T
01:48:42.115 --> 01:48:43.350
KNOW AGAIN I'LL DEFER TO THE
01:48:43.416 --> 01:48:44.184
AUTHORITY.
01:48:44.251 --> 01:48:45.819
ALLOW MY STAFF TO ANSWER IF THEY
01:48:45.886 --> 01:48:47.454
HAVE ANYTHING TO ADD BUT I THINK
01:48:47.520 --> 01:48:49.656
IT IS CONCERN ABOUT WE'VE GOT TO
01:48:49.723 --> 01:48:51.157
KEEP THIS PROJECT GOING WE'VE
01:48:51.224 --> 01:48:53.093
GOT A DEMONSTRATE WE HAVE SOME.
01:48:53.159 --> 01:48:54.728
LANGUAGE IN THE REPORT WHERE.
01:48:54.794 --> 01:48:56.029
THE DECISION TO MOVE FORWARD WAS
01:48:56.096 --> 01:48:57.163
NOT JUST BECAUSE OF THE FEDERAL
01:48:57.230 --> 01:48:58.632
GRANT BUT WE WANT TO DEMONSTRATE
01:48:58.698 --> 01:49:00.066
TO THE VOTERS WHO APPROVED
01:49:00.133 --> 01:49:01.768
PROPOSITION THE BONDS.
01:49:01.835 --> 01:49:04.170
THAT THIS PROJECT IS GOING TO BE
01:49:04.237 --> 01:49:06.039
SOMETHING THAT WILL HAPPEN FOR
01:49:06.106 --> 01:49:07.507
THE STATE OF CALIFORNIA IT IT IT
01:49:07.574 --> 01:49:09.075
IS RAIL IF YOU START SEEING
01:49:09.142 --> 01:49:10.243
CONSTRUCTION IN.
01:49:10.310 --> 01:49:11.378
CONCRETE ON THE GROUND IT CETERA
01:49:11.444 --> 01:49:13.413
SO I THINK I THINK THAT SOME OF
01:49:13.480 --> 01:49:14.981
THE PERSPECTIVE PERHAPS AT THE
01:49:15.048 --> 01:49:17.684
AUTHORITY WOULD HAVE I DON'T
01:49:17.751 --> 01:49:19.853
KNOW STAFF HAVE ANYTHING TO ADD.
01:49:19.920 --> 01:49:21.021
BOBBI ASKING THE SAME QUESTION
01:49:21.087 --> 01:49:21.621
TO THE THIRTY IN A FEW MINUTES
01:49:21.688 --> 01:49:23.456
SO THANK YOU VERY MUCH THANK YOU
01:49:23.523 --> 01:49:25.258
MISTER CHAIR YES MISS PATTERSON.
01:49:25.325 --> 01:49:28.395
DID DID I HEAR ACCURATELY THAT.
01:49:28.461 --> 01:49:30.964
FUTURE POTENTIAL CHANGE BORDERS
01:49:31.031 --> 01:49:32.732
COULD BE IN THE MAGNITUDE OF ONE
01:49:32.799 --> 01:49:36.469
POINT EIGHT BILLION.
01:49:36.536 --> 01:49:37.971
AS ONE OF AT BASED ON THE MOST
01:49:38.038 --> 01:49:39.306
RECENT AND HE'S OUR POINT IN
01:49:39.372 --> 01:49:40.573
TIME CALCULATIONS OF COURSE WHAT
01:49:40.640 --> 01:49:41.374
DURING THE TIME OF OUR REVIEW IS
01:49:41.441 --> 01:49:43.043
ONE POINT SIX BILLION SEVEN
01:49:43.109 --> 01:49:44.945
POINT SIX BILLION.
01:49:45.011 --> 01:49:47.881
LET THAT SINK INVOKES
01:49:47.948 --> 01:49:48.181
[inaudible]
01:49:48.248 --> 01:49:49.950
SHARON FRAZIER.
01:49:50.016 --> 01:49:52.052
JUST LIKE TO FOLLOW UP ON
01:49:52.118 --> 01:49:53.687
ANOTHER QUESTION.
01:49:53.753 --> 01:49:55.388
I DO YOU BELIEVE THAT HSR HIGH
01:49:55.455 --> 01:49:56.556
SPEED REAL CAN I IMPLEMENT ALL
01:49:56.623 --> 01:49:57.824
THE PROVISIONS.
01:49:57.891 --> 01:49:58.892
IN THE BALLOT MEASURE ON PROP
01:49:58.959 --> 01:49:59.559
ONE NAY --
01:49:59.626 --> 01:50:01.194
THAT THE PEOPLE OF CALIFORNIA
01:50:01.261 --> 01:50:03.296
VOTED FOR AND WAS JUST FOLLOW
01:50:03.363 --> 01:50:04.364
THAT UP WITH.
01:50:04.431 --> 01:50:06.066
WHAT IS YOUR UNDERSTANDING IF
01:50:06.132 --> 01:50:11.271
THEY CAN ATTAIN THESE PROVISIONS?
01:50:11.338 --> 01:50:12.772
YEAH WOOD MISTER FRAZIER WE
01:50:12.839 --> 01:50:14.407
DIDN'T SPECIFICALLY LOOK AT
01:50:14.474 --> 01:50:16.576
PROPOSITION ONE A AND COMPARED
01:50:16.643 --> 01:50:18.712
IT TO WHAT WE SAW AS FAR AS
01:50:18.778 --> 01:50:20.280
PROGRESS THE AUTHORITY HAD MADE
01:50:20.347 --> 01:50:21.247
SO I DON'T I DON'T HAVE THE
01:50:21.314 --> 01:50:22.816
ABILITY TO ANSWER THAT QUESTION
01:50:22.882 --> 01:50:24.117
I APOLOGIZE.
01:50:24.184 --> 01:50:25.518
THE OTHER WAS THAT IN THE IN THE
01:50:25.585 --> 01:50:28.154
BALLOT [inaudible]
01:50:28.221 --> 01:50:30.023
FOR NOT.
01:50:30.090 --> 01:50:33.460
A PRICE THAT WAS SET FOR FAIR.
01:50:33.526 --> 01:50:37.097
FOR THE FARE TO RIDE THE HE OR
01:50:37.163 --> 01:50:38.365
WAS IT IN SOME KIND OF DOCUMENT
01:50:38.431 --> 01:50:40.200
SAID THAT WHAT IT WOULD COST
01:50:40.266 --> 01:50:41.568
RIGHT HIGH SPEED RAIL.
01:50:41.634 --> 01:50:42.669
WHAT IT DO YOU KNOW WHAT THE
01:50:42.736 --> 01:50:45.638
COST WOULD BE NOW IT IN TODAY'S
01:50:45.705 --> 01:50:46.172
DOLLARS I'M HERE IS ALMOST
01:50:46.239 --> 01:50:47.374
DOUBLED?
01:50:47.440 --> 01:50:48.842
I AGAIN WOULD WHEN I'M LOOKING
01:50:48.908 --> 01:50:50.143
AT STAFF AND THERE'S THERE TELL
01:50:50.210 --> 01:50:51.344
ME WE KNOW WE DON'T HAVE THAT
01:50:51.411 --> 01:50:52.812
INFORMATION SO AGAIN I WOULD
01:50:52.879 --> 01:50:53.813
DEFER TO THE AUTHORITY FOR THE
01:50:53.880 --> 01:50:55.215
ANSWER THAT QUESTION I THINK WE
01:50:55.281 --> 01:50:57.183
NEED TO BE ABLE TO UNDERSTAND IF
01:50:57.250 --> 01:50:59.319
THE SAYING IS AFFORDABLE DRUG.
01:50:59.386 --> 01:51:01.021
YOU KNOW TO WRITE ON IT MOVES
01:51:01.087 --> 01:51:04.424
FORWARD [inaudible]
01:51:04.491 --> 01:51:06.026
YES.
01:51:06.092 --> 01:51:06.693
ON THE LAST POINT WHERE YOU SAID
01:51:06.760 --> 01:51:08.128
THAT THERE WAS PRESSURE TO TRY
01:51:08.194 --> 01:51:09.562
TO SHOW SOMETHING. TO
01:51:09.629 --> 01:51:12.532
DEMONSTRATE SOMETHING VISIBLE ON
01:51:12.599 --> 01:51:13.867
PAGE THIRTY DIGITAL TRIGGERED
01:51:13.933 --> 01:51:15.435
THIS THAT YOU YOU RIGHT.
01:51:15.502 --> 01:51:16.536
OR IN THE AUDIT THAT STORY
01:51:16.603 --> 01:51:18.571
REPORTED TOTAL COST ESTIMATES
01:51:18.638 --> 01:51:20.607
WHEN BEGINNING CONSTRUCTION IN.
01:51:20.673 --> 01:51:21.141
TWENTY THIRTEEN THERE WERE
01:51:21.207 --> 01:51:22.909
UNREASONABLY LOW CAN YOU EXPOUND
01:51:22.976 --> 01:51:24.677
ON HOW YOU CAME TO THAT
01:51:24.744 --> 01:51:27.213
CONCLUSION SO IS UNDER THAT WITH
01:51:27.280 --> 01:51:28.415
DID DID THEY KNOW THE ROUTE BUT
01:51:28.481 --> 01:51:31.684
THE COSTS WERE LOW AND THEY JUST
01:51:31.751 --> 01:51:34.020
SAID IT ANYWAYS.
01:51:34.087 --> 01:51:34.854
WHAT SERVER THEY CERTAINLY KNEW
01:51:34.921 --> 01:51:35.422
WAS THAT THEY DIDN'T HAVE
01:51:35.488 --> 01:51:36.656
ADEQUATE INFORMATION TO PLACE
01:51:36.723 --> 01:51:37.290
RELIABLE DOLLAR MONTH ON THOSE
01:51:37.357 --> 01:51:38.658
COSTS THE DOLLAR AMOUNTS THAT WE
01:51:38.725 --> 01:51:40.160
REFER TO IN THE REPORT FOR POINT
01:51:40.226 --> 01:51:40.894
OF COMPARISON?
01:51:40.960 --> 01:51:42.562
HAVE TO DO WITH THOSE IN THE THE
01:51:42.629 --> 01:51:44.197
CONTINGENCIES AND OTHER OF
01:51:44.264 --> 01:51:45.065
PROVISIONAL SUMS UP THE
01:51:45.131 --> 01:51:46.800
AUTHORITY ESTABLISHED WHEN
01:51:46.866 --> 01:51:47.367
EXECUTING EACH OF THE THREE
01:51:47.434 --> 01:51:49.202
CONTRACTS.
01:51:49.269 --> 01:51:51.571
WE COMPARED THOSE TO THE THAT
01:51:51.638 --> 01:51:53.339
CHANGES TO DATE THE COSTS OF RUN
01:51:53.406 --> 01:51:54.340
TODAY AS WELL AS THOSE IN THE
01:51:54.407 --> 01:51:55.175
FUTURE AND THAT'S THE BASIS FOR
01:51:55.241 --> 01:51:56.509
OUR CONCLUSION ABOUT.
01:51:56.576 --> 01:51:59.579
THE ON RECENTLY LOW NATURE OF OF
01:51:59.646 --> 01:52:02.649
THE WRITTEN OUR POINT ABOUT THE
01:52:02.715 --> 01:52:04.250
ON REASON THIS THOSE NUMBERS IS
01:52:04.317 --> 01:52:05.852
REALLY ROOTED IN.
01:52:05.919 --> 01:52:07.787
AUTHORITIES KNOW IN KNOWN
01:52:07.854 --> 01:52:11.291
UNCERTAINTIES SURROUNDING --
01:52:11.357 --> 01:52:12.225
THESE ISSUES AND THAT.
01:52:12.292 --> 01:52:14.027
THEY COULDN'T PUT A GOOD NUMBER
01:52:14.094 --> 01:52:15.628
ON THEM BUT IT'S LED TO FORGIVE
01:52:15.695 --> 01:52:17.831
ME BUT IF IT'S ONE THING TO SAY
01:52:17.897 --> 01:52:19.165
I DON'T KNOW.
01:52:19.232 --> 01:52:20.700
IT'S ANOTHER THING TO SAY I
01:52:20.767 --> 01:52:21.968
DON'T KNOW BUT THIS IS THE
01:52:22.035 --> 01:52:22.202
NUMBER.
01:52:22.268 --> 01:52:24.804
CORRECT.
01:52:24.871 --> 01:52:25.672
I WOULD AGREE INSOFAR AS YES
01:52:25.738 --> 01:52:27.774
THEY THEY PUT OUT A THEY PUT OUT
01:52:27.841 --> 01:52:30.910
A SEVERAL CONTRACTS WITH A
01:52:30.977 --> 01:52:32.479
CONTINGENCY AMOUNTS THAT WERE
01:52:32.545 --> 01:52:34.314
INADEQUATE SO.
01:52:34.380 --> 01:52:36.149
SO THE NUMBER THEY PUT OUT.
01:52:36.216 --> 01:52:38.485
WAS JUSTIFIED HOUSE IF THEY
01:52:38.551 --> 01:52:42.689
DON'T KNOW THE INFORMATION --
01:52:42.755 --> 01:52:43.723
THAT'S A QUESTION I CAN ASK THE
01:52:43.790 --> 01:52:44.290
DOOR TO BE I WAS THE FOR THE
01:52:44.357 --> 01:52:45.458
AUTHORITY ABOUT THE METHODOLOGY
01:52:45.525 --> 01:52:46.426
FOR SAID THEY HAVE A WRIST THEY
01:52:46.493 --> 01:52:47.360
HAD A RISK ASSESSMENT.
01:52:47.427 --> 01:52:49.095
PROCESS BUT BY THEIR OWN
01:52:49.162 --> 01:52:50.396
ADMISSION IN VARIOUS SPORT YOU
01:52:50.463 --> 01:52:51.831
KNOW FORMS THAT THAT THE
01:52:51.898 --> 01:52:52.966
INFORMATION THAT WOULD BE THE
01:52:53.032 --> 01:52:54.033
INPUT TO THE SYSTEM.
01:52:54.100 --> 01:52:55.168
WAS INCOMPLETE SO I DON'T KNOW
01:52:55.235 --> 01:52:56.069
HOW THEY WOULD HAVE THEY WOULD
01:52:56.136 --> 01:52:57.971
DEFEND THE OUTPUTS BUT AGAIN I
01:52:58.037 --> 01:53:01.074
WOULD I WOULD FOR THEM FOR THE
01:53:01.141 --> 01:53:03.676
METHODOLOGIES THANK.
01:53:03.743 --> 01:53:04.611
ANY OTHER QUESTIONS FROM THE
01:53:04.677 --> 01:53:05.211
COMMITTEE.
01:53:05.278 --> 01:53:08.381
SAY NONE THANK YOU VERY MUCH.
01:53:08.448 --> 01:53:10.116
NEXT TO LIKE TO INVITE.
01:53:10.183 --> 01:53:10.650
REPRESENTATIVES FROM THE
01:53:10.717 --> 01:53:11.184
CALIFORNIA HIGH SPEED RAIL
01:53:11.251 --> 01:53:27.400
AUTHORITY
01:53:51.791 --> 01:53:51.858
.
01:53:51.858 --> 01:53:53.493
ALL RIGHT WELCOME GENTLEMEN --
01:53:53.560 --> 01:53:54.494
YOU -- LIKE
01:53:54.561 --> 01:53:56.729
AS I INDICATED TO THE AUDITOR
01:53:56.796 --> 01:53:58.798
AND HER STAFF A YOU HAVE
01:53:58.865 --> 01:53:59.465
APPROXIMATELY FIFTEEN MINUTES TO
01:53:59.532 --> 01:54:01.467
MAKE A OPEN PRESENTATION AND WE
01:54:01.534 --> 01:54:02.802
LIKE TO FOLLOW UP WITH THEM
01:54:02.869 --> 01:54:05.004
QUESTIONS [inaudible]
01:54:05.071 --> 01:54:15.148
THANK [inaudible] NINETY DEGREE.
01:54:15.215 --> 01:54:16.082
NOW I'M HERE WITH.
01:54:16.149 --> 01:54:19.352
YOU CAN PULL THE THE MICHAEL OF
01:54:19.419 --> 01:54:32.365
A CLOSER YEAH --
01:54:32.432 --> 01:54:34.701
AT THE TABLE WITH.
01:54:34.767 --> 01:54:35.735
ACTIONS.
01:54:35.802 --> 01:54:39.572
WHO IS OUR A YEAR AGO?
01:54:39.639 --> 01:54:39.872
THANK YOU.
01:54:39.939 --> 01:54:40.573
I WHO IS THE DEPUTY DIRECTOR AND
01:54:40.640 --> 01:54:41.608
CHIEF OPERATING OFFICER FOR THE
01:54:41.674 --> 01:54:43.142
CALIFORNIA HIGH SPEED RAIL
01:54:43.209 --> 01:54:44.077
AUTHORITY AND IT'S BEEN WITH
01:54:44.143 --> 01:54:44.410
THIS SENSE --
01:54:44.477 --> 01:54:48.248
FEBRUARY OF TWO THOUSAND AND
01:54:48.314 --> 01:54:49.048
EIGHTEEN I BELIEVE IT'S STILL
01:54:49.115 --> 01:54:49.782
GOOD MORNING --
01:54:49.849 --> 01:54:52.085
CHAIRMAN CHAIRMAN MARZUKI CHU
01:54:52.151 --> 01:54:52.252
CHI.
01:54:52.318 --> 01:54:54.387
CHI.
01:54:54.454 --> 01:54:57.490
AND COMMITTEE MEMBERS.
01:54:57.557 --> 01:54:59.792
MY NAME IS TOM RICHARDS.
01:54:59.859 --> 01:55:01.461
I'M VICE CHAIR OF THE CALIFORNIA
01:55:01.527 --> 01:55:05.531
HIGH SPEED RAIL AUTHORITY BOARD.
01:55:05.598 --> 01:55:07.967
I ALSO SERVE AS SERVE ON THE
01:55:08.034 --> 01:55:09.836
FINANCE AND AUDIT COMMITTEE.
01:55:09.902 --> 01:55:12.605
WITH ITS CHAIR MIKE ROSSI.
01:55:12.672 --> 01:55:15.241
A SUBCOMMITTEE OF TO TO THE FULL
01:55:15.308 --> 01:55:16.876
BOARD THAT WAS ESTABLISHED IN
01:55:16.943 --> 01:55:19.679
TWO THOUSAND AND TWELVE THIS
01:55:19.746 --> 01:55:21.447
COMMITTEE IS RESPONSIBLE FOR
01:55:21.514 --> 01:55:23.316
OVERSEEING OFF FUNDING AND
01:55:23.383 --> 01:55:24.550
FINANCE FINANCIAL MATTERS
01:55:24.617 --> 01:55:26.019
BUDGETS [inaudible]
01:55:26.085 --> 01:55:27.820
EXPENDITURES.
01:55:27.887 --> 01:55:29.389
PERFORMANCE METRICS IN REVIEWING
01:55:29.455 --> 01:55:31.591
AUDITS.
01:55:31.658 --> 01:55:33.593
AND OUR RESPONSES TO THEM.
01:55:33.660 --> 01:55:34.661
SUCH AS THE ONE WE ARE
01:55:34.727 --> 01:55:37.297
DISCUSSING TODAY.
01:55:37.363 --> 01:55:38.898
I'VE SERVED ON THE BOARD SINCE
01:55:38.965 --> 01:55:44.937
DECEMBER OF TWO THOUSAND AND TEN
01:55:45.004 --> 01:55:46.039
I WANT TO THANK YOU FOR THE
01:55:46.105 --> 01:55:47.006
OPPORTUNITY TO DISCUSS THE
01:55:47.073 --> 01:55:48.541
CALIFORNIA STATE AUDITOR'S
01:55:48.608 --> 01:55:50.810
FINDINGS AND RECOMMENDATIONS.
01:55:50.877 --> 01:55:51.978
BECAUSE OF THE PROJECT'S
01:55:52.045 --> 01:55:53.046
IMPORTANCE FOR THE FUTURE OF
01:55:53.112 --> 01:55:54.781
CALIFORNIA.
01:55:54.847 --> 01:55:56.716
CALIFORNIA'S MOBILITY AND
01:55:56.783 --> 01:55:58.885
SIGNIFICANT INVESTMENT REQUIRED
01:55:58.951 --> 01:56:00.186
TO DELIVER THE SYSTEM.
01:56:00.253 --> 01:56:01.921
A HIGH LEVEL OF TRANSPARENCY AND
01:56:01.988 --> 01:56:05.191
OVERSIGHT IS APPROPRIATE TO HELP
01:56:05.258 --> 01:56:07.193
US IMPROVE OUR PERFORMANCE.
01:56:07.260 --> 01:56:09.395
WE WELCOME THE AUDIT.
01:56:09.462 --> 01:56:12.298
WE TAKE IT VERY SERIOUSLY.
01:56:12.365 --> 01:56:13.199
AND WE AGREE WITH THE
01:56:13.266 --> 01:56:14.500
RECOMMENDATIONS THAT ARE MOVING
01:56:14.567 --> 01:56:18.204
SWIFTLY TO IMPLEMENT ALL OF THEM.
01:56:18.271 --> 01:56:19.706
I ALSO APPRECIATE THE
01:56:19.772 --> 01:56:22.442
OPPORTUNITY TO PROVIDE YOU.
01:56:22.508 --> 01:56:24.377
WITH SOME IMPORTANT CONTEXT.
01:56:24.444 --> 01:56:26.145
SYSTEM TO SOME THE INFORMATION
01:56:26.212 --> 01:56:29.582
PRESENTED IN THE AUDIT REPORT.
01:56:29.649 --> 01:56:30.983
AS YOU KNOW.
01:56:31.050 --> 01:56:32.885
THE AUTHORITIES CHALLENGES BEEN
01:56:32.952 --> 01:56:34.454
TO OF ALL THIS ORGANIZATION.
01:56:34.520 --> 01:56:36.255
AND IMPROVE ITS PROGRAM
01:56:36.322 --> 01:56:38.124
MANAGEMENT PROCESS SEES.
01:56:38.191 --> 01:56:40.259
AND AT THE SAME TIME. TO TO
01:56:40.326 --> 01:56:42.161
BEGIN DELIVERING HIGH SPEED RAIL
01:56:42.228 --> 01:56:44.864
TO CALIFORNIA.
01:56:44.931 --> 01:56:47.900
WHEN PROPOSITION ONE A PASSED?
01:56:47.967 --> 01:56:49.369
THERE WERE ABOUT TEN TEN STATE
01:56:49.435 --> 01:56:50.737
EMPLOYEES WORKING FOR THE
01:56:50.803 --> 01:56:52.972
AUTHORITY.
01:56:53.039 --> 01:56:54.907
AND THEY'RE WORTH SEVENTEEN AS I
01:56:54.974 --> 01:56:56.876
RECALL WHEN I JOIN THE BOARD AND
01:56:56.943 --> 01:56:59.379
TWO THOUSAND AND TEN IN TWO
01:56:59.445 --> 01:57:00.313
THOUSAND TWELVE WE'VE GROWN TO
01:57:00.380 --> 01:57:01.180
APPROXIMATELY FIFTY STATE
01:57:01.247 --> 01:57:02.615
EMPLOYEES.
01:57:02.682 --> 01:57:04.851
CURRENTLY THERE IS A HUNDRED AND
01:57:04.917 --> 01:57:06.819
EIGHTY EIGHT STAFF.
01:57:06.886 --> 01:57:09.322
WORKING ON THE PROGRAM.
01:57:09.389 --> 01:57:11.190
THOSE ARE STATE EMPLOYEES.
01:57:11.257 --> 01:57:12.358
I THINKS IT'S IMPORTANT TO NOTE
01:57:12.425 --> 01:57:14.293
THAT BY DESIGN.
01:57:14.360 --> 01:57:16.162
WE DO NOT INTEND TO ESTABLISH A
01:57:16.229 --> 01:57:17.830
LARGE STATE OR ORGANIZATION
01:57:17.897 --> 01:57:20.600
BECAUSE WE ARE SINGLE PURPOSE
01:57:20.666 --> 01:57:22.969
AGENCY WHOSE SOLE MISSION.
01:57:23.035 --> 01:57:24.470
IS TO BUILD HIGH SPEED RAIL
01:57:24.537 --> 01:57:26.439
WHICH WILL THEN BE OPERATED.
01:57:26.506 --> 01:57:27.507
AND MAINTAINED BY THE PRIVATE
01:57:27.573 --> 01:57:30.176
SECTOR.
01:57:30.243 --> 01:57:30.977
THAT IS A PRIVATE SECTOR
01:57:31.043 --> 01:57:32.078
OPERATOR [inaudible]
01:57:32.145 --> 01:57:34.180
THAT SAID.
01:57:34.247 --> 01:57:35.815
AS WE'VE CONTINUED TO GROW TO
01:57:35.882 --> 01:57:37.717
OUR CURRENT STAFFING LEVEL.
01:57:37.784 --> 01:57:39.218
WE'VE HAD TO QUICKLY TRANSITION
01:57:39.285 --> 01:57:40.386
FROM A VERY SMALL PLANNING
01:57:40.453 --> 01:57:43.456
AGENCY. TO AN EFFECTIVE PROJECT
01:57:43.523 --> 01:57:45.558
DELIVERY ORGANIZATION.
01:57:45.625 --> 01:57:46.959
WE'VE WORKED TO MEET THIS
01:57:47.026 --> 01:57:48.828
CHALLENGE THROUGH.
01:57:48.895 --> 01:57:51.364
A CONTINUOUS IMPROVEMENT PROCESS.
01:57:51.431 --> 01:57:52.999
THE AUDIT REAFFIRMS SEVERAL
01:57:53.065 --> 01:57:53.900
ISSUES.
01:57:53.966 --> 01:57:55.067
THAT WE HAVE PREVIOUSLY
01:57:55.134 --> 01:57:58.004
IDENTIFIED THROUGH OUR INTERNAL
01:57:58.070 --> 01:57:59.338
REVIEWS.
01:57:59.405 --> 01:58:01.207
IT OFFERS RECOMMENDATIONS THAT
01:58:01.274 --> 01:58:03.242
ARE CONSISTENT WITH AND BUILD
01:58:03.309 --> 01:58:04.277
UPON.
01:58:04.343 --> 01:58:07.447
ACTIONS WE'VE BEGUN IMPLEMENTING.
01:58:07.513 --> 01:58:08.681
WE ARE NOW PROCEEDING TO
01:58:08.748 --> 01:58:10.049
IMPLEMENT THE AUDITOR'S
01:58:10.116 --> 01:58:11.751
RECOMMENDATIONS.
01:58:11.818 --> 01:58:12.652
WHICH WILL STRENGTHEN AND
01:58:12.718 --> 01:58:15.755
SOLIDIFY OUR EFFORTS TO EXPEDITE.
01:58:15.822 --> 01:58:17.690
THE ORGANIZATIONS TRANSITION TO
01:58:17.757 --> 01:58:19.659
A FULLY INTEGRATED PROGRAM
01:58:19.725 --> 01:58:21.093
MANAGEMENT AND PROJECT DELIVERY
01:58:21.160 --> 01:58:23.196
ORGANIZATION.
01:58:23.262 --> 01:58:24.797
BECAUSE OF THE SERIOUS NATURE OF
01:58:24.864 --> 01:58:25.965
SOME ISSUE DISCUSSED IN THE
01:58:26.032 --> 01:58:27.533
AUDIT REPORT.
01:58:27.600 --> 01:58:29.168
WE BELIEVE IT IS ESSENTIAL TO
01:58:29.235 --> 01:58:30.369
PROVIDE YOU WITH ADDITIONAL
01:58:30.436 --> 01:58:33.105
CONTEXT PARTICULARLY AS IT
01:58:33.172 --> 01:58:34.340
RELATES TO THE AUTHORITIES
01:58:34.407 --> 01:58:36.709
DECISION. TO MOVE FORWARD WITH
01:58:36.776 --> 01:58:38.478
CONSTRUCTION AND THE CENTRAL
01:58:38.544 --> 01:58:40.780
VALLEY WHEN IT DID.
01:58:40.847 --> 01:58:42.381
THIS IS THE PRIMARY ISSUE
01:58:42.448 --> 01:58:43.649
DISCUSSED.
01:58:43.716 --> 01:58:45.384
IN THE FIRST CHAPTER OF THE
01:58:45.451 --> 01:58:47.119
AUDIT REPORT.
01:58:47.186 --> 01:58:48.521
SPECIFICALLY THE AUDIT REPORT
01:58:48.588 --> 01:58:50.623
CHARACTERIZES THIS IS FLAWED
01:58:50.690 --> 01:58:52.358
DECISION MAKING.
01:58:52.425 --> 01:58:53.726
AND CONCLUDES THAT OUR DECISION
01:58:53.793 --> 01:58:56.062
RESULTED IN BILLIONS OF DOLLARS.
01:58:56.128 --> 01:58:58.598
OF COST OVERRUNS.
01:58:58.664 --> 01:59:00.433
AS I HOPE TO DESCRIBE FOR YOU
01:59:00.500 --> 01:59:02.768
TODAY IN THE MEMBERS OF OUR TEAM.
01:59:02.835 --> 01:59:04.704
WE BELIEVE THE DECISIONS WE MADE
01:59:04.770 --> 01:59:07.807
REFLECTED CAREFUL CONSIDERATION.
01:59:07.874 --> 01:59:10.977
OF HOW TO MAXIMIZE THE VALUE.
01:59:11.043 --> 01:59:13.012
OF THE FEDERAL APPROPRIATIONS
01:59:13.079 --> 01:59:15.081
WHILE ALSO MANAGING MYRIAD RISKS
01:59:15.147 --> 01:59:17.517
WE FACED.
01:59:17.583 --> 01:59:19.352
AS THE AUDIT NOTES IN TWO
01:59:19.418 --> 01:59:20.119
THOUSAND AND NINE THE AUTHORITY
01:59:20.186 --> 01:59:21.487
SECURE TWO POINT SIX BILLION
01:59:21.554 --> 01:59:23.022
DOLLARS.
01:59:23.089 --> 01:59:24.290
IN FEDERAL.
01:59:24.357 --> 01:59:26.259
AMERICAN RECOVERY AND
01:59:26.325 --> 01:59:27.593
REINVESTMENT ACT.
01:59:27.660 --> 01:59:29.862
FUNDS FOLLOWED BY AN ADDITIONAL
01:59:29.929 --> 01:59:30.429
NINE HUNDRED AND TWENTY NINE
01:59:30.496 --> 01:59:32.098
MILLION.
01:59:32.164 --> 01:59:35.902
IN FEDERAL FISCAL --
01:59:35.968 --> 01:59:36.736
TWO THOUSAND TEN TRANSPORTATION
01:59:36.802 --> 01:59:38.104
HOUSING AND URBAN DEVELOPMENT
01:59:38.170 --> 01:59:40.840
GRANT FUNDS.
01:59:40.907 --> 01:59:42.174
THE OUR A STIMULUS.
01:59:42.241 --> 01:59:44.510
CAME WITH A PRESCRIPTION FOR HOW
01:59:44.577 --> 01:59:45.945
WHERE AND WHEN AND THE DOLLARS.
01:59:46.012 --> 01:59:47.713
WERE TO BE SPENT.
01:59:47.780 --> 01:59:49.582
THE PORTION OF THE FEDERAL FUNDS
01:59:49.649 --> 01:59:50.349
WERE TO BE DIRECTED TO
01:59:50.416 --> 01:59:52.685
COMPLETING ENVIRONMENTAL REVIEWS
01:59:52.752 --> 01:59:54.787
FOR THE ENTIRE FACE ONE SYSTEM
01:59:54.854 --> 01:59:57.590
FROM SAN FRANCISCO TO ANAHEIM.
01:59:57.657 --> 01:59:59.358
HOWEVER MOST OF THE FEDERAL
01:59:59.425 --> 02:00:01.060
FUNDS APPROXIMATELY THREE
02:00:01.127 --> 02:00:02.862
BILLION DOLLARS.
02:00:02.929 --> 02:00:04.797
WE'RE SPECIFICALLY DIRECTED. FOR
02:00:04.864 --> 02:00:06.065
STARTING CONSTRUCTION AND THE
02:00:06.132 --> 02:00:08.234
CENTRAL VALLEY.
02:00:08.301 --> 02:00:09.502
THIS WAS DONE AT A TIME TWO
02:00:09.569 --> 02:00:12.238
THOUSAND AND TEN WHEN CALIFORNIA
02:00:12.305 --> 02:00:13.739
HAD AN UNEMPLOYMENT RATE OF
02:00:13.806 --> 02:00:15.575
TWELVE POINT 4%.
02:00:15.641 --> 02:00:16.976
AND THE CENTRAL VALLEY FARED
02:00:17.043 --> 02:00:18.444
MUCH WORSE.
02:00:18.511 --> 02:00:19.712
WITH AN UNEMPLOYMENT RATE
02:00:19.779 --> 02:00:22.748
APPROACHING 17%.
02:00:22.815 --> 02:00:24.016
IN ADDITION.
02:00:24.083 --> 02:00:25.418
THE OUR FINDS CAME WITH THE
02:00:25.484 --> 02:00:28.254
CLEAR STATUTORY DEADLINE.
02:00:28.321 --> 02:00:30.723
THAT THEY'D BE FULLY EXPANDED BY
02:00:30.790 --> 02:00:34.160
SEPTEMBER.
02:00:34.226 --> 02:00:34.760
THIRTY TWO THOUSAND SEVENTEEN
02:00:34.827 --> 02:00:36.629
ANY REMAINING UNSPENT BALANCE.
02:00:36.696 --> 02:00:38.497
OF THESE ARE A FUNDS WOULD NO
02:00:38.564 --> 02:00:39.432
LONGER BE AVAILABLE FOR
02:00:39.498 --> 02:00:44.604
CALIFORNIA.
02:00:44.670 --> 02:00:46.739
SUBSEQUENTLY IN TWO THOUSAND
02:00:46.806 --> 02:00:51.077
TWELVE THREE SENATE BILL. TEN
02:00:51.143 --> 02:00:51.611
TWENTY NINE THE CALIFORNIA
02:00:51.677 --> 02:00:52.211
LEGISLATURE APPROPRIATED TWO
02:00:52.278 --> 02:00:58.184
POINT SIX BILLION DOLLARS.
02:00:58.250 --> 02:00:59.452
IN PROPOSITION ONE A FUNDS TO
02:00:59.518 --> 02:01:05.157
MATCH THE FEDERAL ARE.
02:01:05.224 --> 02:01:05.825
IN FY TEN FUNDS CONSISTENT WITH
02:01:05.891 --> 02:01:06.225
BOTH PROPOSITION.
02:01:06.292 --> 02:01:06.759
ONE EIGHTY AND THE FEDERAL
02:01:06.826 --> 02:01:07.426
REQUIREMENTS FOR MATCHING FUNDS.
02:01:07.493 --> 02:01:08.027
THIS ALLOWED CONSTRUCTION TO
02:01:08.094 --> 02:01:09.228
BEGIN IN THE CENTRAL VALLEY.
02:01:09.295 --> 02:01:10.129
THE AUDIT REPORT QUESTIONS THE
02:01:10.196 --> 02:01:10.963
AUTHORITY'S DECISION TO BEGIN
02:01:11.030 --> 02:01:12.531
CONSTRUCTION.
02:01:12.598 --> 02:01:14.166
DESPITE NOT HAVING A
02:01:14.233 --> 02:01:16.168
SUFFICIENTLY ACCOUNTED FOR KNOWN
02:01:16.235 --> 02:01:18.270
RISKS.
02:01:18.337 --> 02:01:19.572
WHEN THE AUTHORITY MADE THE
02:01:19.639 --> 02:01:21.941
DECISION TO START CONSTRUCTION?
02:01:22.008 --> 02:01:23.709
AND THE CENTRAL VALLEY.
02:01:23.776 --> 02:01:25.544
WE DID SO WITH A CLEAR
02:01:25.611 --> 02:01:27.046
UNDERSTANDING.
02:01:27.113 --> 02:01:28.481
THAT IT CAME WITH A NUMBER OF
02:01:28.547 --> 02:01:30.783
UNKNOWNS AND RISKS FOR
02:01:30.850 --> 02:01:33.486
ADDITIONAL COSTS.
02:01:33.552 --> 02:01:34.987
AS OUR TWO THOUSAND AND EIGHTEEN
02:01:35.054 --> 02:01:36.689
BUSINESS PLAN NOTED.
02:01:36.756 --> 02:01:38.391
SOME OF THESE RISKS WERE
02:01:38.457 --> 02:01:39.892
REALIZED.
02:01:39.959 --> 02:01:41.594
AND WE DEVOTED A FULL CHAPTER IN
02:01:41.661 --> 02:01:43.729
DISCUSSING THEIR IMPACT.
02:01:43.796 --> 02:01:48.300
ON OUR PROGRAM COST AND SCHEDULE
02:01:48.367 --> 02:01:48.601
[inaudible]
02:01:48.668 --> 02:01:49.502
IDEALLY.
02:01:49.568 --> 02:01:50.169
WE WOULD HAVE MOVED INTO DESIGN
02:01:50.236 --> 02:01:52.972
AND CONSTRUCTION CONTRACTS WITH
02:01:53.039 --> 02:01:56.008
PRELIMINARY PLANNING COMPLETE.
02:01:56.075 --> 02:01:57.109
MAJOR THIRD PARTY AGREEMENTS IN
02:01:57.176 --> 02:01:58.010
PLACE.
02:01:58.077 --> 02:02:01.180
UTILITY RELOCATIONS IDENTIFIED.
02:02:01.247 --> 02:02:10.656
AND A RIGHT OF WAY ACTIVE
02:02:10.723 --> 02:02:12.458
ACQUISITION UNDER WAY.
02:02:12.525 --> 02:02:13.259
THAT WOULD ENSURE THAT THESE AND
02:02:13.325 --> 02:02:13.926
OTHER PROJECT ELEMENTS WERE MORE
02:02:13.993 --> 02:02:15.294
TO FIND.
02:02:15.361 --> 02:02:16.529
COSTED AND INCORPORATED IN THE
02:02:16.595 --> 02:02:17.897
PROJECT BUDGET.
02:02:17.963 --> 02:02:18.564
THE AUTHORITY MADE THE DECISION
02:02:18.631 --> 02:02:19.198
TO ACCEPT THE THREE POINT FIVE
02:02:19.265 --> 02:02:19.865
BILLION DOLLARS IN FEDERAL FUNDS
02:02:19.932 --> 02:02:20.466
AND BEGIN BUILDING HIGH SPEED
02:02:20.533 --> 02:02:22.101
RAIL.
02:02:22.168 --> 02:02:23.502
WE WAIT THIS DECISION AGAINST
02:02:23.569 --> 02:02:25.171
THE RISKS.
02:02:25.237 --> 02:02:26.539
THAT CAME WITH MOVING TO
02:02:26.605 --> 02:02:28.474
CONSTRUCTION EARLY.
02:02:28.541 --> 02:02:30.409
INSTEAD OF DEFERRING.
02:02:30.476 --> 02:02:32.244
CONSTRUCTION UNTIL ALL COSTS
02:02:32.311 --> 02:02:35.614
WERE BETTER DEFINE.
02:02:35.681 --> 02:02:36.782
DIFFERING CONSTRUCTION MEANT
02:02:36.849 --> 02:02:38.818
TURNING AWAY BILLIONS OF DOLLARS
02:02:38.884 --> 02:02:41.053
IN FEDERAL FUNDS AND FOR GOING
02:02:41.120 --> 02:02:42.455
PROPOSITION ONE A REQUIRED
02:02:42.521 --> 02:02:44.323
MATCHING FUNDS.
02:02:44.390 --> 02:02:46.258
AT THAT TIME AS YOU KNOW CAP AND
02:02:46.325 --> 02:02:48.260
TRADE FUNDS WERE NOT AVAILABLE
02:02:48.327 --> 02:02:48.561
[inaudible]
02:02:48.627 --> 02:02:50.262
WITHOUT.
02:02:50.329 --> 02:02:52.465
THESE FEDERAL MATCHING FUNDS
02:02:52.531 --> 02:02:53.699
THERE WAS NO HOPE OF STARTING
02:02:53.766 --> 02:02:55.534
CONSTRUCTION UNLESS AND UNTIL
02:02:55.601 --> 02:02:57.503
THE AUTHORITY COULD SECURE AND
02:02:57.570 --> 02:03:00.806
OTHER SOURCES MATCHING FUNDS.
02:03:00.873 --> 02:03:02.441
WE BELIEVE THE BENEFITS OF
02:03:02.508 --> 02:03:07.713
PUTTING PEOPLE BACK TO WORK.
02:03:07.780 --> 02:03:08.380
AT A TIME OF HIGH UNEMPLOYMENT
02:03:08.447 --> 02:03:09.381
OUTWEIGH THE RISKS OF ADDITIONAL
02:03:09.448 --> 02:03:09.815
COSTS.
02:03:09.882 --> 02:03:11.617
THAT MIGHT BE INCURRED.
02:03:11.684 --> 02:03:13.753
THAT BELIEF HAS BEEN VALIDATED
02:03:13.819 --> 02:03:15.321
BECAUSE THE BENEFITS OF MOVING
02:03:15.387 --> 02:03:16.255
FORWARD.
02:03:16.322 --> 02:03:18.624
ARE BEING REALIZED.
02:03:18.691 --> 02:03:20.893
APPROXIMATELY THIRTY SIX
02:03:20.960 --> 02:03:21.961
THOUSAND JOB YEARS HAVE BEEN
02:03:22.027 --> 02:03:23.562
GENERATED AND AN ESTIMATED SIX
02:03:23.629 --> 02:03:25.331
POINT FOUR BILLION DOLLARS.
02:03:25.397 --> 02:03:27.399
IN ECONOMIC IMPACT HIS RIPPLED
02:03:27.466 --> 02:03:29.668
ACROSS THE STATE SINCE DECEMBER
02:03:29.735 --> 02:03:31.437
SKEWS ME AS OF DECEMBER
02:03:31.504 --> 02:03:34.473
SEVENTEENTH. FOUR HUNDRED AND
02:03:34.540 --> 02:03:35.641
SEVENTY FOUR SMALL BUSINESSES
02:03:35.708 --> 02:03:37.276
WERE WORKING ON THE PROGRAM.
02:03:37.343 --> 02:03:39.912
AS THIS TO AS OF SEPTEMBER
02:03:39.979 --> 02:03:41.814
EIGHTEEN AND THOUGH HAVE THOSE
02:03:41.881 --> 02:03:43.516
ONE HUNDRED AND FIFTY SEVEN
02:03:43.582 --> 02:03:45.017
DISADVANTAGED BUSINESSES.
02:03:45.084 --> 02:03:46.619
AND FIFTY TWO WERE DISABLED
02:03:46.685 --> 02:03:49.855
VETERAN BUSINESS ENTERPRISES.
02:03:49.922 --> 02:03:53.659
AS OF OCTOBER 312-000-1820 FOUR
02:03:53.726 --> 02:03:56.195
HUNDRED AND SIXTY SIX SIXTY SIX
02:03:56.262 --> 02:03:57.863
CRAP CAPTAIN SKEWS ME CRAFT
02:03:57.930 --> 02:03:59.198
LABORS.
02:03:59.265 --> 02:04:01.033
HAD BEEN DISPATCHED TO WORK ON
02:04:01.100 --> 02:04:03.035
OUR CONSTRUCTION PROJECTS IN THE
02:04:03.102 --> 02:04:03.569
CENTRAL CALIFORNIA CENTRAL
02:04:03.636 --> 02:04:04.103
VALLEY [inaudible]
02:04:04.170 --> 02:04:06.071
HOWEVER.
02:04:06.138 --> 02:04:08.574
AS THE AUDIT REPORTS NOTES OUR
02:04:08.641 --> 02:04:09.642
ESTIMATE TO COMPLETE
02:04:09.708 --> 02:04:11.277
CONSTRUCTION IN THE CENTRAL
02:04:11.343 --> 02:04:12.778
VALLEY HIS INCREASED.
02:04:12.845 --> 02:04:14.513
IN EARLY TWO THOUSAND EIGHTEEN
02:04:14.580 --> 02:04:16.382
FOLLOWING A COMPREHENSIVE COST
02:04:16.448 --> 02:04:18.818
REVIEW DIRECTED BY THE THE
02:04:18.884 --> 02:04:19.318
BOARDS FINANCE AND AUDIT
02:04:19.385 --> 02:04:20.920
COMMITTEE WE INCREASE THE
02:04:20.986 --> 02:04:22.988
ESTIMATE FROM SEVEN POINT EIGHT
02:04:23.055 --> 02:04:23.756
BILLION.
02:04:23.823 --> 02:04:28.260
ESTABLISHED IN JANUARY OF TWO
02:04:28.327 --> 02:04:28.894
THOUSAND SEVENTEEN TWO TEN POINT
02:04:28.961 --> 02:04:30.329
SIX BILLION.
02:04:30.396 --> 02:04:32.298
THE RESULTS ARE THIS REPRESENTS
02:04:32.364 --> 02:04:35.067
A NEW ESTIMATE COMPLETION FOR
02:04:35.134 --> 02:04:36.669
THE CENTRAL VALLEY PROJECT.
02:04:36.735 --> 02:04:38.003
WE INCORPORATED THIS UPDATED
02:04:38.070 --> 02:04:40.272
ESTIMATE IN THE TWO THOUSAND
02:04:40.339 --> 02:04:41.340
EIGHTEEN BUSINESS PLAN.
02:04:41.407 --> 02:04:44.476
AND THE BOARD ADOPTED.
02:04:44.543 --> 02:04:45.110
TO TWO THOUSAND EIGHTEEN PROGRAM
02:04:45.177 --> 02:04:46.378
BASELINE WHICH SETS THE SCOPE
02:04:46.445 --> 02:04:49.114
SCHEDULE AND BUDGET REQUIRED TO
02:04:49.181 --> 02:04:51.450
DELIVER THE GOALS SET IN THE TWO
02:04:51.517 --> 02:04:54.954
THOUSAND BUSINESS PLAN.
02:04:55.020 --> 02:04:57.189
THESE RICH NEW ESTIMATE IS WHAT
02:04:57.256 --> 02:04:58.991
IS YOUR REFLECTED IN THE AUDIT
02:04:59.058 --> 02:05:01.060
REPORT AND INCLUDES FULLY
02:05:01.126 --> 02:05:04.063
ASSIGNED COSTS WE HAD PREVIOUSLY
02:05:04.129 --> 02:05:07.299
IDENTIFIED. FOR THE MOST PART IT
02:05:07.366 --> 02:05:09.368
RESENT REPRESENTS COSTS THAT
02:05:09.435 --> 02:05:11.470
WOULD HAVE BEEN BUDGETED EARLIER
02:05:11.537 --> 02:05:13.606
IF WE HAD BEEN ABLE TO COMPLETE.
02:05:13.672 --> 02:05:15.507
A MORE --
02:05:15.574 --> 02:05:16.575
OUR COMPLETE MORE OF THE PRE
02:05:16.642 --> 02:05:18.277
REQUISITE WORK THAT IS IDEALLY
02:05:18.344 --> 02:05:21.180
DOWN CONSTRUCTION STARTS.
02:05:21.247 --> 02:05:23.048
INSTEAD THE PREVIOUSLY UNDEFINED
02:05:23.115 --> 02:05:24.717
RISK COSTS HAVE NOW BEEN
02:05:24.783 --> 02:05:26.752
BUDGETED FOR IN OUR NEW
02:05:26.819 --> 02:05:28.487
ESTIMATED COMPLETION.
02:05:28.554 --> 02:05:30.923
THE AUDIT REPORT FOR THE NEW
02:05:30.990 --> 02:05:32.391
ESTIMATE AT COMPLETE SKEWS ME
02:05:32.458 --> 02:05:34.093
THE AUDIT REPORTS STATES THAT
02:05:34.159 --> 02:05:35.561
THE RISKS ASSOCIATED WITH EARLY
02:05:35.628 --> 02:05:37.162
CONSTRUCTION.
02:05:37.229 --> 02:05:39.265
CONTRIBUTED TO SIX HUNDRED
02:05:39.331 --> 02:05:40.866
MILLION DOLLARS IN CHANGES TO
02:05:40.933 --> 02:05:43.369
CONSTRUCTION COSTS AND THAT
02:05:43.435 --> 02:05:45.104
FINISHING THE CONSTRUCTION.
02:05:45.170 --> 02:05:46.538
THAT IS CURRENTLY UNDER WAY WILL
02:05:46.605 --> 02:05:48.207
REQUIRE IN ANOTHER ANOTHER ONE
02:05:48.274 --> 02:05:50.476
POINT SIX BILLION.
02:05:50.542 --> 02:05:52.077
THESE AMOUNTS WERE ACCOUNTED FOR
02:05:52.144 --> 02:05:53.512
AND ARE NOW BEING MANAGED
02:05:53.579 --> 02:05:55.414
THROUGH THE TWO THOUSAND EIGHT
02:05:55.481 --> 02:05:57.116
PROGRAM BASS LINE MOST OF THE
02:05:57.182 --> 02:05:58.317
COST CHANGES.
02:05:58.384 --> 02:06:01.153
APPROXIMATELY 80%.
02:06:01.220 --> 02:06:02.888
RESULT IN THE VARIOUS SCOPE
02:06:02.955 --> 02:06:05.224
CHANGES DRIVEN PRIMARILY BY
02:06:05.291 --> 02:06:06.191
ADVANCING THE RAILROAD
02:06:06.258 --> 02:06:08.627
AGREEMENTS UTILITY RELOCATIONS
02:06:08.694 --> 02:06:11.430
AND OTHER THIRD PARTY AGREEMENTS.
02:06:11.497 --> 02:06:13.832
AND SOME REFLECT NEW SCOPE WHICH
02:06:13.899 --> 02:06:15.434
INCLUDES FOR EXAMPLE SOME
02:06:15.501 --> 02:06:17.703
ADDITIONAL COSTS RESULTING FROM
02:06:17.770 --> 02:06:20.272
THE BOARD'S DECISION. TO EXTEND
02:06:20.339 --> 02:06:22.341
CONSTRUCTION PACKAGE.
02:06:22.408 --> 02:06:24.443
ONE NORTH BY THREE MILES. TO
02:06:24.510 --> 02:06:26.612
REITERATE THE COST ASSOCIATED
02:06:26.679 --> 02:06:28.213
WITH THE SCOPE CHANGES.
02:06:28.280 --> 02:06:30.416
REPRESENT RISKS WE RECOGNIZED
02:06:30.482 --> 02:06:32.651
WHEN WE INITIATED CONSTRUCTION.
02:06:32.718 --> 02:06:34.753
BUT HAD NOT FULLY ACCOUNTED FOR
02:06:34.820 --> 02:06:36.288
IN OUR PROJECT BUDGET.
02:06:36.355 --> 02:06:38.023
AND WERE HIGHER THAN THE
02:06:38.090 --> 02:06:39.558
CONTINGENCY AMOUNTS THAT WE HAD
02:06:39.625 --> 02:06:41.860
ESTABLISHED.
02:06:41.927 --> 02:06:42.928
THEY HAVE NOW BEEN FULLY
02:06:42.995 --> 02:06:45.331
ACCOUNTED FOR IN THE TWO
02:06:45.397 --> 02:06:47.299
THOUSAND EIGHTEEN BASELINE.
02:06:47.366 --> 02:06:50.102
THE REMAINING 20% IN COSTS.
02:06:50.169 --> 02:06:52.204
CHANGES REFLECT TO ADDITIONAL
02:06:52.271 --> 02:06:53.872
COST CATEGORIES.
02:06:53.939 --> 02:06:55.207
THE FIRST HIS MISCELLANEOUS
02:06:55.274 --> 02:06:56.608
SCOPE CHANGES THAT ARE NOT
02:06:56.675 --> 02:06:58.610
NEATLY CAPTURED AND RAILROAD OR
02:06:58.677 --> 02:06:59.712
THIRD PARTY AND UTILITY
02:06:59.778 --> 02:07:02.348
RELOCATION SCOPE CHANGES.
02:07:02.414 --> 02:07:03.449
THESE INCLUDE FOR ECSTATIC FOR
02:07:03.515 --> 02:07:06.585
EXAMPLE COSTS.
02:07:06.652 --> 02:07:09.254
AND DESIGN CHANGES.
02:07:09.321 --> 02:07:10.990
THE SECOND CATEGORY REFLECTS
02:07:11.056 --> 02:07:13.592
BOTH ACTUAL THAT'S APPROXIMATELY
02:07:13.659 --> 02:07:14.827
ONE HUNDRED MILLION DOLLARS AND
02:07:14.893 --> 02:07:17.196
POTENTIAL FUTURE DELAY COST.
02:07:17.262 --> 02:07:18.664
WHICH WE BELIEVE WILL BE UP TO
02:07:18.731 --> 02:07:20.165
AN ADDITIONAL THREE HUNDRED AND
02:07:20.232 --> 02:07:22.434
FIFTY MILLION DOLLARS.
02:07:22.501 --> 02:07:23.869
THE COSTS ARE PRIMARILY
02:07:23.936 --> 02:07:26.405
ASSOCIATED WITH CONSTRUCTION
02:07:26.472 --> 02:07:28.173
DELAYS DUE TO LITIGATION.
02:07:28.240 --> 02:07:30.409
AND CONSEQUENTIAL AGE IN
02:07:30.476 --> 02:07:33.445
ACQUIRING RIGHT OF WAY.
02:07:33.512 --> 02:07:34.747
THE RIGHT OF WAY ACTUALLY ACT
02:07:34.813 --> 02:07:36.615
ACQUISITION DELAYS WERE IN PART
02:07:36.682 --> 02:07:37.516
DRIVEN.
02:07:37.583 --> 02:07:39.518
BY PROPOSITION ONE A LITIGATION
02:07:39.585 --> 02:07:41.687
AND TEMPER TEMPORARILY BLOCKED
02:07:41.754 --> 02:07:44.456
ACCESS TO THESE PROPOSITION ONE
02:07:44.523 --> 02:07:46.158
A FUNDS AND REQUIRED
02:07:46.225 --> 02:07:47.760
RENEGOTIATION.
02:07:47.826 --> 02:07:48.961
OF TERMS IN OUR FEDERAL GRANT
02:07:49.028 --> 02:07:49.928
AGREEMENT THAT ALLOWED THE
02:07:49.995 --> 02:07:52.765
EXPENDITURE OF FEDERAL FUNDS.
02:07:52.831 --> 02:07:56.802
BEFORE STATE MATCHING FUNDS.
02:07:56.869 --> 02:07:59.838
ALL OF THE LITIGATION RELATED
02:07:59.905 --> 02:08:00.139
[inaudible]
02:08:00.205 --> 02:08:02.207
DELAYED COSTS.
02:08:02.274 --> 02:08:03.242
WE'RE OUTSIDE THE CONTROL OF THE
02:08:03.308 --> 02:08:04.877
AUTHORITY.
02:08:04.943 --> 02:08:06.278
HOWEVER THE AUTHORITY TOOK A
02:08:06.345 --> 02:08:08.580
NUMBER OF MEASURES. TO MANAGE
02:08:08.647 --> 02:08:10.449
THESE DELAYS INCLUDING FOR
02:08:10.516 --> 02:08:12.518
EXAMPLE PROVIDING THAT
02:08:12.584 --> 02:08:14.253
CONSTRUCTION PACKAGE ONE
02:08:14.319 --> 02:08:17.556
CONTRACTOR BE ONLY LIMITED --
02:08:17.623 --> 02:08:19.158
NOTICES HIT WAS THREE WAS GIVEN
02:08:19.224 --> 02:08:21.193
A ONLY A LIMITED NOTICE TO
02:08:21.260 --> 02:08:22.961
PROCEED FOR SEVERAL MONTHS IN
02:08:23.028 --> 02:08:24.363
ORDER TO MITIGATE AGAINST THE
02:08:24.430 --> 02:08:27.633
POTENTIAL OF HIGHER DELAY COSTS.
02:08:27.699 --> 02:08:29.535
BASED ON THIS NEW A BASED ON
02:08:29.601 --> 02:08:30.869
THIS NEW ESTIMATE COMPLETION THE
02:08:30.936 --> 02:08:32.571
AUTHORITY COULD POTENTIALLY
02:08:32.638 --> 02:08:35.107
ANCHOR UP TO FOUR HUNDRED AND
02:08:35.174 --> 02:08:36.742
FIFTY MILLION DOLLARS IN TOTAL
02:08:36.809 --> 02:08:38.944
DELAY COST IF IT OCCURS.
02:08:39.011 --> 02:08:40.913
IT WILL REPRESENT APPROXIMATELY
02:08:40.979 --> 02:08:43.749
5% OF THE TOTAL COST OF THE
02:08:43.816 --> 02:08:46.452
CENTRAL VALLEY PROJECT.
02:08:46.518 --> 02:08:48.320
BASED ON THIS WE CANNOT AGREE
02:08:48.387 --> 02:08:51.590
THAT THERE HAS BEEN BILLIONS OF
02:08:51.657 --> 02:08:53.325
DOLLARS IN COST OVERRUNS.
02:08:53.392 --> 02:08:54.960
WE UNDERSTAND WHY SOME PEOPLE
02:08:55.027 --> 02:08:57.096
MIGHT QUESTION THE DECISION.
02:08:57.162 --> 02:08:59.431
BUT WE BELIEVE OUR DECISION TO
02:08:59.498 --> 02:09:01.200
MOVE FORWARD WITH CONSTRUCTION.
02:09:01.266 --> 02:09:02.935
TO HAVE ONE HUNDRED NINETEEN
02:09:03.001 --> 02:09:05.437
MILES OF CONSTRUCTION UNDER WAY.
02:09:05.504 --> 02:09:07.106
AN THE A CAN ECONOMIC BENEFITS
02:09:07.172 --> 02:09:10.642
YIELDED SO FAR WAS NOT FLY FLIED.
02:09:10.709 --> 02:09:12.144
BUT INAPPROPRIATE AND WELL
02:09:12.211 --> 02:09:14.046
REASONED DECISION GIVEN THE
02:09:14.113 --> 02:09:15.514
ALTERNATIVE.
02:09:15.581 --> 02:09:16.982
WAS TO LEAVE BILLIONS OF DOLLARS
02:09:17.049 --> 02:09:18.984
IN FEDERAL FUNDS ON THE TABLE
02:09:19.051 --> 02:09:21.386
AND SHOW WE STAND BY.
02:09:21.453 --> 02:09:24.256
OUR DECISION.
02:09:24.323 --> 02:09:25.691
THE SECOND CHAPTER IN THE AUDIT
02:09:25.757 --> 02:09:27.659
REPORT IS AN EVALUATION OF THE
02:09:27.726 --> 02:09:28.927
AUTHORITIES CONTRACT MANAGEMENT
02:09:28.994 --> 02:09:30.829
THE REPORT ACKNOWLEDGES THAT THE
02:09:30.896 --> 02:09:32.164
AUTHORITY.
02:09:32.231 --> 02:09:33.599
HAS ADOPTED CONTACT MANAGER
02:09:33.665 --> 02:09:35.067
POLICIES TO HELP INSURE IT
02:09:35.134 --> 02:09:37.736
MONITORS CONTRACTS AND CONTROL
02:09:37.803 --> 02:09:39.438
AND CONTROL COSTS.
02:09:39.505 --> 02:09:40.639
HOWEVER IT AGAIN OF VICE
02:09:40.706 --> 02:09:41.874
CONCERNS.
02:09:41.940 --> 02:09:42.875
WITH OUR CONTRACT MANAGEMENT
02:09:42.941 --> 02:09:45.277
STRUCTURE.
02:09:45.344 --> 02:09:47.713
DOCUMENTATION OVERSIGHT IN
02:09:47.779 --> 02:09:49.181
COMPLIANCE WITH OUR POLICIES.
02:09:49.248 --> 02:09:50.649
THE AUTHORITY HAS RECOGNIZED
02:09:50.716 --> 02:09:52.417
THESE ISSUES.
02:09:52.484 --> 02:09:53.986
THE TWO THOUSAND AND EIGHTEEN
02:09:54.052 --> 02:09:55.621
BUSINESS PLAN DISCUSSED ADDING
02:09:55.687 --> 02:09:58.123
CONTRACT MANAGEMENT EXPERTISE
02:09:58.190 --> 02:10:00.592
AND EXPANDING PROJECT CONTROLS.
02:10:00.659 --> 02:10:01.994
BOTH IN THE FIELD AND AT THE
02:10:02.060 --> 02:10:03.896
PROGRAM LEVEL.
02:10:03.962 --> 02:10:05.130
THOSE EFFORTS ARE BEING
02:10:05.197 --> 02:10:07.299
IMPLEMENTED BUT AS JUST THE
02:10:07.366 --> 02:10:09.535
AUDIT FOUND SOME OR NOT
02:10:09.601 --> 02:10:10.903
CONSISTENTLY FOLLOWED.
02:10:10.969 --> 02:10:12.738
AND IN SOME CASES FURTHER
02:10:12.804 --> 02:10:14.640
IMPROVEMENTS ARE NEEDED.
02:10:14.706 --> 02:10:16.675
WE RECOGNIZE THAT WHILE OUR
02:10:16.742 --> 02:10:18.710
PROCEDURES ARE SOUND WE HAVE NOT
02:10:18.777 --> 02:10:20.179
CONSISTENTLY FOLLOWED THEM BY
02:10:20.245 --> 02:10:22.014
FULLY DOCUMENTING.
02:10:22.080 --> 02:10:23.916
THE NECESSITY OF THE WORK WE'VE
02:10:23.982 --> 02:10:26.318
REQUESTED OF ARE CONTRACTORS.
02:10:26.385 --> 02:10:28.654
OR DOCUMENTING THAT THE WORK
02:10:28.720 --> 02:10:29.788
THAT WAS COMPLETED WAS
02:10:29.855 --> 02:10:31.790
APPROPRIATE.
02:10:31.857 --> 02:10:33.959
AND OF HIGH QUALITY.
02:10:34.026 --> 02:10:35.594
WE HAVE INSTITUTED CORRECTIVE
02:10:35.661 --> 02:10:38.430
MEASURES AROUND THAT TO INSURE
02:10:38.497 --> 02:10:39.731
THAT THESE ARE FULLY DOCUMENTED
02:10:39.798 --> 02:10:42.434
GOING FORWARD.
02:10:42.501 --> 02:10:43.869
THE AUTHORITY WILL IMPLEMENT THE
02:10:43.936 --> 02:10:45.571
AUDIT RECOMMENDATIONS IN THIS
02:10:45.637 --> 02:10:47.973
AREA. TO FULLY EXECUTE OUR
02:10:48.040 --> 02:10:49.675
POLICIES AND PROCEDURES THROUGH
02:10:49.741 --> 02:10:52.044
A STRONGER AND EXPANDED INTERNAL
02:10:52.110 --> 02:10:53.378
AUG AUDIT PROGRAM.
02:10:53.445 --> 02:10:54.646
THAT REPORTS TO THE BOARD OF
02:10:54.713 --> 02:10:56.248
DIRECTORS.
02:10:56.315 --> 02:10:57.549
THIS WILL INCLUDE REQUIRING
02:10:57.616 --> 02:10:59.585
ADEQUATE AND APPROPRIATE TRAIN
02:10:59.651 --> 02:11:01.253
CONTRACT MANAGERS.
02:11:01.320 --> 02:11:02.988
MANAGEMENT STAFF AS WELL AS
02:11:03.055 --> 02:11:05.257
PROVIDING GREATER OVERSIGHT
02:11:05.324 --> 02:11:07.092
THROUGH ONGOING REVIEW OF
02:11:07.159 --> 02:11:08.760
CONTRACT FILES IN IDENTIFYING
02:11:08.827 --> 02:11:09.661
GAPS.
02:11:09.728 --> 02:11:12.798
IN NECESSARY OCCM DOCUMENTATION.
02:11:12.864 --> 02:11:14.866
THE AUTHORITY WILL ALSO INCREASE
02:11:14.933 --> 02:11:18.770
THE CAPACITY AND CAPABILITIES OF
02:11:18.837 --> 02:11:21.006
OUR INTERNAL AUDIT STAFF.
02:11:21.073 --> 02:11:22.941
IN ADDITION.
02:11:23.008 --> 02:11:24.142
THE AUTHORITY IS REVIEWING
02:11:24.209 --> 02:11:25.744
OPTIONS FOR A DESK TOP AUDIT
02:11:25.811 --> 02:11:28.046
SOLUTION THAT WILL PROVIDE A
02:11:28.113 --> 02:11:30.215
CENTRALIZED REPOSITORY. TO HELP
02:11:30.282 --> 02:11:33.552
INSURE CONTRACT MANAGERS CLIENTS
02:11:33.619 --> 02:11:36.922
WITH POLICIES AND PROCEDURES.
02:11:36.989 --> 02:11:38.156
THE AUTHORITY WILL THROUGH
02:11:38.223 --> 02:11:40.025
PERIODIC REPORTING TO THE
02:11:40.092 --> 02:11:41.893
CALIFORNIA STATE AUDITOR.
02:11:41.960 --> 02:11:43.262
SHARE OUR PROGRESS.
02:11:43.328 --> 02:11:44.129
IN IMPLEMENTING ITS
02:11:44.196 --> 02:11:45.998
RECOMMENDATIONS AND THE OTHER
02:11:46.064 --> 02:11:47.099
MEASURES.
02:11:47.165 --> 02:11:48.967
WE ARE UNDER TAKING TO IMPROVE
02:11:49.034 --> 02:11:51.670
OUR CONTRACT MANAGEMENT PROCESS.
02:11:51.737 --> 02:11:53.672
WE RECOGNIZE THAT THE BURDEN IS
02:11:53.739 --> 02:11:56.742
ON US TO PROPERLY DEMONSTRATE.
02:11:56.808 --> 02:11:58.677
THAT PUBLIC DOLLARS ARE PROVIDED
02:11:58.744 --> 02:12:00.345
ARE PROVIDING GOOD VALUE TO THE
02:12:00.412 --> 02:12:01.980
STATE.
02:12:02.047 --> 02:12:03.315
THE THIRD CHAPTER IN THE AUDIT
02:12:03.382 --> 02:12:05.117
REPORT MAKES RECOMMENDATIONS FOR
02:12:05.183 --> 02:12:06.852
IMPROVING THE QUALITY AND
02:12:06.918 --> 02:12:08.954
TRANSPARENCY OF THE AUTHORITIES
02:12:09.021 --> 02:12:10.155
MONITORING.
02:12:10.222 --> 02:12:12.724
AND REPORTING OF KEY GOALS.
02:12:12.791 --> 02:12:14.459
THESE INCLUDE ARE INVENTED Và
02:12:14.526 --> 02:12:15.160
IRON MENTAL SYSTEM
02:12:15.227 --> 02:12:17.362
SUSTAINABILITY AND SMALL AND
02:12:17.429 --> 02:12:19.564
DISADVANTAGED VANTAGE BUSINESS
02:12:19.631 --> 02:12:21.767
UTILIZATION GOALS.
02:12:21.833 --> 02:12:23.769
THE AUTHORITY HAS COMPREHENSIVE
02:12:23.835 --> 02:12:26.238
HINGED SUSTAINABILITY.
02:12:26.305 --> 02:12:27.673
PROGRAM.
02:12:27.739 --> 02:12:29.141
EXCUSE ME.
02:12:29.207 --> 02:12:30.742
THIS IS THE FIRST TIME I'VE EVER
02:12:30.809 --> 02:12:32.511
DONE THIS BY THE WAY.
02:12:32.577 --> 02:12:33.845
AND I'VE GOT A MOUTH FULL OF
02:12:33.912 --> 02:12:38.650
COTTON.
02:12:38.717 --> 02:12:40.085
I DON'T KNOW IF THAT'S A BENEFIT
02:12:40.152 --> 02:12:41.553
FOR YOU THAT I'VE NOT DONE THIS
02:12:41.620 --> 02:12:47.326
OR WHETHER IT'S IT'S A RELIEF.
02:12:47.392 --> 02:12:48.093
SHOW.
02:12:48.160 --> 02:12:49.761
THE THIRD CHAPTER IN THE AUDIT
02:12:49.828 --> 02:12:51.396
MAKES -- IN
02:12:51.463 --> 02:12:52.130
THE AUDIT REPORT MAKES
02:12:52.197 --> 02:12:53.799
RECOMMENDATIONS FOR IMPROVING
02:12:53.865 --> 02:12:55.100
THE QUALITY AND TRANSPARENCY
02:12:55.167 --> 02:12:56.034
PARENTS HE OF THE AUTHORITIES
02:12:56.101 --> 02:12:57.836
MONITORING.
02:12:57.903 --> 02:12:59.705
AND REPORTING OF KEY GOALS THESE
02:12:59.771 --> 02:13:00.739
INCLUDE OUR ENVIRONMENTAL
02:13:00.806 --> 02:13:02.074
SUSTAINABILITY AND SMALL AND
02:13:02.140 --> 02:13:03.842
DISADVANTAGED BUSINESS
02:13:03.909 --> 02:13:05.477
UTILIZATION PROGRAMS.
02:13:05.544 --> 02:13:07.546
AND THEIR GOALS THE AUTHORITY
02:13:07.612 --> 02:13:08.914
HAS A COMPREHENSIVE STATE ST
02:13:08.980 --> 02:13:10.582
SUSTAINABILITY PROGRAM TO
02:13:10.649 --> 02:13:12.050
ACHIEVE.
02:13:12.117 --> 02:13:13.952
NET ZERO GREENHOUSE GASES COMMIT
02:13:14.019 --> 02:13:15.120
OR EMISSIONS.
02:13:15.187 --> 02:13:16.855
AND USE CLEAN POWER IN
02:13:16.922 --> 02:13:18.957
OPERATIONS WE ESTABLISH WE
02:13:19.024 --> 02:13:21.026
APPRECIATE THE AUDIT
02:13:21.093 --> 02:13:22.594
RECOMMENDATIONS.
02:13:22.661 --> 02:13:23.095
THAT WE BETTER ALIGN OUR
02:13:23.161 --> 02:13:24.796
POLICIES WITH HOW WE COLLECT
02:13:24.863 --> 02:13:27.299
INVALIDATE DATA. TO MAKE
02:13:27.366 --> 02:13:30.302
EFFECTIVELY. TO MORE EFFECTIVELY
02:13:30.369 --> 02:13:32.404
TRACK OUR PROGRESS IN THIS AREA
02:13:32.471 --> 02:13:34.473
SIMILARLY.
02:13:34.539 --> 02:13:36.208
THE AUTHORITIES ESTABLISH TITLES
02:13:36.274 --> 02:13:37.309
FOR SMALL AND DISADVANTAGED
02:13:37.376 --> 02:13:39.044
BUSINESS REALIZATION TO HELP
02:13:39.111 --> 02:13:40.779
CREATE ECONOMIC OPPORTUNITY
02:13:40.846 --> 02:13:42.080
PARTICULARLY.
02:13:42.147 --> 02:13:44.549
IN DISADVANTAGED COMMUNITIES.
02:13:44.616 --> 02:13:47.386
WE WILL EXPAND AND CLARIFY ARE
02:13:47.452 --> 02:13:49.154
REPORTING IN THAT AREA IS
02:13:49.221 --> 02:13:50.889
RECOMMENDED BY THE AUDIT.
02:13:50.956 --> 02:13:52.224
WE ARE PLEASED TO NOTE THAT THE
02:13:52.290 --> 02:13:53.458
AUDIT REPORT FOUND THAT THE
02:13:53.525 --> 02:13:54.459
AUTHORITY.
02:13:54.526 --> 02:13:57.529
FOLLOWED INDUSTRIES STANDARDS.
02:13:57.596 --> 02:13:59.297
IN ESTIMATION OF AN ACT OF
02:13:59.364 --> 02:14:01.967
ECONOMIC IMPACTS OF ITS SPENDING
02:14:02.033 --> 02:14:04.102
ON IT CONTRACTING AND
02:14:04.169 --> 02:14:05.871
CONSTRUCTION ACTIVITIES.
02:14:05.937 --> 02:14:07.806
THE REPORT NOTED THAT THEY ARE
02:14:07.873 --> 02:14:09.207
NOT SUBSTANTIALLY UNDER OR OVER
02:14:09.274 --> 02:14:10.909
STATED.
02:14:10.976 --> 02:14:12.277
IN CLOSING.
02:14:12.344 --> 02:14:13.678
WE BELIEVE THAT THIS AUDIT AS
02:14:13.745 --> 02:14:16.148
REQUESTED BY ASSEMBLY MANNER
02:14:16.214 --> 02:14:18.450
MEMBER PATTERSON AND SENATORS
02:14:18.517 --> 02:14:19.384
SHOULD BE ALL OUR SKEWS ME
02:14:19.451 --> 02:14:20.919
THEY'LL.
02:14:20.986 --> 02:14:24.423
AND ARAMBULA AND PRIOR AUDITS
02:14:24.489 --> 02:14:25.857
HAVE ASSISTED THE AUTHORITY.
02:14:25.924 --> 02:14:27.659
IN IMPROVING OPERATIONS AND
02:14:27.726 --> 02:14:29.094
MAKING OUR WORK MORE TRANSPARENT
02:14:29.161 --> 02:14:30.695
TO THE PUBLIC.
02:14:30.762 --> 02:14:32.464
WE LOOK FORWARD TO IMPLEMENTING
02:14:32.531 --> 02:14:33.732
THE RECOMMENDATIONS OF THIS
02:14:33.799 --> 02:14:34.766
CURRENT AUDIT TO STRENGTHEN
02:14:34.833 --> 02:14:36.401
ADMINISTRATION.
02:14:36.468 --> 02:14:38.370
OF THE PROGRAM AS CONSTRUCTION
02:14:38.437 --> 02:14:41.039
CONTINUES ON THIS TRANSFORMATIVE
02:14:41.106 --> 02:14:42.841
PROJECT IN THE CENTRAL VALLEY.
02:14:42.908 --> 02:14:44.776
AND AS THE BOOK AND PROJECTS
02:14:44.843 --> 02:14:46.678
ADVANCE IN NORTHERN AND SOUTHERN
02:14:46.745 --> 02:14:48.580
CALIFORNIA INCLUDING THAT
02:14:48.647 --> 02:14:50.782
CALTRAIN ELECTRIFICATION PROJECT
02:14:50.849 --> 02:14:51.750
IN THE BAY AREA.
02:14:51.817 --> 02:14:53.885
AND THE UP CAME COMING LINK US
02:14:53.952 --> 02:14:55.854
UNION STATION PROJECT IN LOS
02:14:55.921 --> 02:14:57.355
ANGELES.
02:14:57.422 --> 02:14:59.591
I WANT TO AGAIN THANK YOU.
02:14:59.658 --> 02:15:00.892
I AND THE COMMITTEE MEMBERS
02:15:00.959 --> 02:15:02.561
MISTER CHAIRMAN. FOR PROVIDING
02:15:02.627 --> 02:15:03.962
THE AUTHORITY WITH THIS
02:15:04.029 --> 02:15:05.363
OPPORTUNITY DISCUSS THE AUDIT
02:15:05.430 --> 02:15:07.432
REPORT WITH YOU.
02:15:07.499 --> 02:15:08.834
AND OUR TEAM IS PREPARED TO AND
02:15:08.900 --> 02:15:10.569
TO ADDRESS ANY OF YOUR QUESTIONS
02:15:10.635 --> 02:15:12.671
THANK YOU.
02:15:12.737 --> 02:15:16.975
THANK YOU MISTER HAS IS.
02:15:17.042 --> 02:15:19.511
SIR I HAVE NO ADDITIONAL COMMENT
02:15:19.578 --> 02:15:21.680
OKAY [inaudible]
02:15:21.746 --> 02:15:24.816
ALL RIGHT [inaudible]
02:15:24.883 --> 02:15:28.487
FRAZIER MISSPELLED.
02:15:28.553 --> 02:15:34.259
THIS BILL WOULD PURSUE.
02:15:34.326 --> 02:15:35.961
OKAY ARE WE SAW THE RECORD HOW
02:15:36.027 --> 02:15:36.962
MANY --
02:15:37.028 --> 02:15:38.230
ADDITIONAL --
02:15:38.296 --> 02:15:40.165
PROJECT MANAGEMENT TEAM I WOULD
02:15:40.232 --> 02:15:41.466
YOU STRUCTURE AND CREATIVE
02:15:41.533 --> 02:15:44.002
PROJECT MANAGEMENT TEAM --
02:15:44.069 --> 02:15:45.270
AS RECOMMENDED THE AUDIT HOW
02:15:45.337 --> 02:15:46.204
WOULD YOU DO IT WHAT TELL ME
02:15:46.271 --> 02:15:47.639
TELL ME WHAT YOU'RE STRUCTURE.
02:15:47.706 --> 02:15:49.975
AND HOW MANY PEOPLE YOU WOULD
02:15:50.041 --> 02:15:52.110
NEED TO HAVE --
02:15:52.177 --> 02:15:54.412
CREATED A MODEL.
02:15:54.479 --> 02:15:55.647
YOU CAN SHARE WITH US --
02:15:55.714 --> 02:16:00.018
A SPECIFIC MODEL --
02:16:00.085 --> 02:16:02.888
TO MANAGE THE PROJECT ADEQUATELY.
02:16:02.954 --> 02:16:04.456
SENATE DEBATE SENATOR BILL I'M
02:16:04.523 --> 02:16:06.224
GONNA ASK --
02:16:06.291 --> 02:16:07.192
MISTER HEDGES TO ADDRESS THIS
02:16:07.259 --> 02:16:09.895
WHO HAS TAKEN THE LEAD OVER THE
02:16:09.961 --> 02:16:11.263
PERIOD OF TIME SINCE HE JOINED
02:16:11.329 --> 02:16:12.797
IN FEBRUARY --
02:16:12.864 --> 02:16:15.000
AND RESTRUCTURED OUR ENTIRE
02:16:15.066 --> 02:16:16.334
ORGANIZATION SO --
02:16:16.401 --> 02:16:17.536
JUMP.
02:16:17.602 --> 02:16:19.170
YES SIR --
02:16:19.237 --> 02:16:21.439
GOING BACK TO THE SHIP KALLUS
02:16:21.506 --> 02:16:23.041
TESTIMONY WHEN HE WAS HERE IN
02:16:23.108 --> 02:16:24.042
APRIL.
02:16:24.109 --> 02:16:27.345
HE BASICALLY FOR BACK TO THE TWO
02:16:27.412 --> 02:16:27.979
THOUSAND EIGHTEEN BUSINESS PLAN
02:16:28.046 --> 02:16:31.650
DECIDED BASICALLY CHAPTER FOUR
02:16:31.716 --> 02:16:32.183
THREE KIDS THREE CRITICAL
02:16:32.250 --> 02:16:34.119
ELEMENTS ONE WAS BASICALLY THAT
02:16:34.185 --> 02:16:35.587
OF LEADERSHIP.
02:16:35.654 --> 02:16:37.923
AS A RESULT OF THAT WE BROUGHT
02:16:37.989 --> 02:16:40.625
IN SOME KEY PERSONNEL --
02:16:40.692 --> 02:16:42.093
I JUST I GET REFERENCE IS BEING
02:16:42.160 --> 02:16:44.396
ONE OF THEM BUT A VERY HUMBLE
02:16:44.462 --> 02:16:45.196
HEARING ALL.
02:16:45.263 --> 02:16:46.631
BUT WE REARRANGE THE WHOLE
02:16:46.698 --> 02:16:49.367
ORGANIZATION TO TRANSCEND IT
02:16:49.434 --> 02:16:51.269
FROM A WILL WAS FIND AS A
02:16:51.336 --> 02:16:54.239
PLANNING ORGANIZATION. TO
02:16:54.306 --> 02:16:56.474
PREDOMINATELY A PROGRAM TO LIVE
02:16:56.541 --> 02:16:57.809
FOR OFFICES TOWARDS THAT
02:16:57.876 --> 02:16:58.910
DELIVERY.
02:16:58.977 --> 02:17:00.178
AS A RESULT OF THAT WHAT YOU'LL
02:17:00.245 --> 02:17:02.414
SEE.
02:17:02.480 --> 02:17:03.515
BROUGHT THE HORTON THE WHOLE
02:17:03.582 --> 02:17:06.585
ORGANIZATION IS IT EMPHASIS NOW
02:17:06.651 --> 02:17:09.621
YEAH.
02:17:09.688 --> 02:17:12.157
YES YES ARE A IN AND OUT TO GET
02:17:12.223 --> 02:17:13.925
ME THE STRUCTURE.
02:17:13.992 --> 02:17:15.327
WE HAVE THAT STRUCTURE SIR.
02:17:15.393 --> 02:17:17.329
AND THAT IS REFLECTED IN THE THE
02:17:17.395 --> 02:17:18.830
THE THE PMP WHICH IS THE PROGRAM
02:17:18.897 --> 02:17:20.599
MANAGEMENT PLAN WHICH WAS JUST
02:17:20.665 --> 02:17:22.701
WRITTEN AND APPROVED.
02:17:22.767 --> 02:17:23.835
OKAY YEAH.
02:17:23.902 --> 02:17:26.171
LIKE HOW MANY POSITIONS OR FILL
02:17:26.237 --> 02:17:30.108
HOW MANY POSITIONS ARE VAGUE AND
02:17:30.175 --> 02:17:31.776
THAT IS ALL DOCUMENTS SIR IN
02:17:31.843 --> 02:17:34.379
THAT IN OUR PMP AND IN OUR OR
02:17:34.446 --> 02:17:35.180
TRUCKS OKAY IS THAT IS THAT
02:17:35.246 --> 02:17:36.715
CONSISTENT WITH THE
02:17:36.781 --> 02:17:38.984
RECOMMENDATION OF THE AUTO.
02:17:39.050 --> 02:17:40.018
SIR I'M NOT SURE WHAT THE
02:17:40.085 --> 02:17:41.786
AUDITOR REVIEWED WITH REGARDS TO
02:17:41.853 --> 02:17:43.755
WE PRESENTED OUR ORGANIZATION
02:17:43.822 --> 02:17:47.325
CHART AND OUR PMP SO --
02:17:47.392 --> 02:17:48.593
I WOULD WHAT WE'RE IN THE
02:17:48.660 --> 02:17:50.395
PROCESS IS JAIL NASSER THE
02:17:50.462 --> 02:17:51.029
QUESTION YEAH.
02:17:51.096 --> 02:17:52.998
WHAT WE'RE DOING IN THE PROCESS
02:17:53.064 --> 02:17:55.834
AND NOW ARE THERE FOR THE SYSTEM
02:17:55.900 --> 02:17:56.735
DOWN ON THE ON?
02:17:56.801 --> 02:17:58.236
SENATOR WHAT WE'RE DOING IN THE
02:17:58.303 --> 02:18:01.272
PROCESS NOW SENATOR PHIL IS.
02:18:01.339 --> 02:18:03.842
MAKING SURE THAT THAT REAL AND
02:18:03.908 --> 02:18:05.844
WHEN AND IF I DON'T BELIEVE THAT
02:18:05.910 --> 02:18:07.278
THAT'S COMPLETE YET.
02:18:07.345 --> 02:18:09.314
AS SOON AS THAT IS COMPLETE WILL
02:18:09.381 --> 02:18:11.016
FOR YOU FOR YOU THE FINAL DONE
02:18:11.082 --> 02:18:12.217
WE WANT TO KNOW LIKE HOW.
02:18:12.283 --> 02:18:15.420
ABSOLUTELY RECOMMEND --
02:18:15.487 --> 02:18:17.389
YOU'RE GOING TO HAVE A STRUCTURE.
02:18:17.455 --> 02:18:18.523
THAT COMPLIES WITH THE AUDIT.
02:18:18.590 --> 02:18:20.692
AND IT DOESN'T MEAN ANYTHING
02:18:20.759 --> 02:18:21.559
JUST A CHART.
02:18:21.626 --> 02:18:22.894
INTO YOU HAVE THE POSITIONS
02:18:22.961 --> 02:18:26.164
FILLED AND THE QUALIFIED PEOPLE.
02:18:26.231 --> 02:18:28.199
IN IN --
02:18:28.266 --> 02:18:30.068
THOSE POSITIONS.
02:18:30.135 --> 02:18:30.969
CORRECT.
02:18:31.036 --> 02:18:32.070
YEAH SO LIKE WHAT I WHAT I'M
02:18:32.137 --> 02:18:34.172
TRYING TO GET FROM YOU IS.
02:18:34.239 --> 02:18:36.141
HAVE YOU GOT TWO THIRDS OF THAT
02:18:36.207 --> 02:18:37.208
DON HALF OF IT --
02:18:37.275 --> 02:18:39.711
THREE QUARTERS --
02:18:39.778 --> 02:18:41.146
HOW MANY OF THOSE POSITIONS ARE
02:18:41.212 --> 02:18:44.349
VACANT HOW MANY OF OUR OR HAVE
02:18:44.416 --> 02:18:46.551
OF YOU YET TO DETERMINE --
02:18:46.618 --> 02:18:49.287
ANY ADDITIONAL FOG QUALITY CD
02:18:49.354 --> 02:18:51.022
THOSE POSITIONS HOW MUCH MORE
02:18:51.089 --> 02:18:52.757
WORK YOU HAVE TO DO ON THE
02:18:52.824 --> 02:18:55.160
ORGANIZATION.
02:18:55.226 --> 02:18:56.061
CHART THE TO DO.
02:18:56.127 --> 02:18:56.428
THE INITIAL --
02:18:56.494 --> 02:18:57.495
OR A REORGANIZATION WAS
02:18:57.562 --> 02:18:59.030
COMPLETED --
02:18:59.097 --> 02:19:00.498
AND IT WAS COMPLETED PRIOR TO
02:19:00.565 --> 02:19:03.001
THE TIME OF OF SEEING THE ARCTIC
02:19:03.068 --> 02:19:04.335
CAT RECOMMENDATIONS.
02:19:04.402 --> 02:19:08.707
SO THAT IS UNDER UNDER WAY
02:19:08.773 --> 02:19:11.042
ESTIMATE WOULD BE THAT THAT
02:19:11.109 --> 02:19:11.910
WOULD BE AVAILABLE BY.
02:19:11.976 --> 02:19:14.512
THE FIRST OF THE YEAR
02:19:14.579 --> 02:19:14.813
[inaudible]
02:19:14.879 --> 02:19:17.549
YES SIR.
02:19:17.615 --> 02:19:21.319
CURRENTLY RIGHT NOW WE HAVE --
02:19:21.386 --> 02:19:22.687
THIRTY EIGHT VACANCIES RIGHT.
02:19:22.754 --> 02:19:24.456
YES SIR.
02:19:24.522 --> 02:19:26.191
WHAT KIND OF CATEGORIES?
02:19:26.257 --> 02:19:26.725
THEREFORE DONLEY SPREAD
02:19:26.791 --> 02:19:27.892
THROUGHOUT THE WHOLE
02:19:27.959 --> 02:19:30.495
ORGANIZATION.
02:19:30.562 --> 02:19:32.130
BUT AGAIN ISN'T MAJORITY OF
02:19:32.197 --> 02:19:35.734
THOSE I WOULD SAY PREDOMINANTLY
02:19:35.800 --> 02:19:37.702
AT MY I HAVE SKILLED TRY TO
02:19:37.769 --> 02:19:38.970
REFRESH MYSELF SIR BUT AGAIN IS.
02:19:39.037 --> 02:19:42.307
FROM AN EARLY AND ADMINISTRATION
02:19:42.373 --> 02:19:43.708
TYPE POSITIONS ON MY OVERLY
02:19:43.775 --> 02:19:44.976
EXECUTIVE LEVEL --
02:19:45.043 --> 02:19:47.178
TALK MANAGER --
02:19:47.245 --> 02:19:47.412
TALK --
02:19:47.479 --> 02:19:50.014
PROJECT MANAGEMENT DECISIONS
02:19:50.081 --> 02:19:51.416
STAR HAD TO GET OUT THE ORG
02:19:51.483 --> 02:19:53.485
CHART WHAT LET'S GET BACK TO YOU
02:19:53.551 --> 02:19:55.587
ON THAT OKAY --
02:19:55.653 --> 02:19:57.489
SO I WITH THAT'S THE KIND OF
02:19:57.555 --> 02:20:03.595
STUFF I WANT I WANT TO GET IT IS
02:20:03.661 --> 02:20:06.030
NOT.
02:20:06.097 --> 02:20:07.599
WHO'S IN CHARGE.
02:20:07.665 --> 02:20:09.367
WHAT THEY'RE MANAGING --
02:20:09.434 --> 02:20:09.934
DO YOU THINK THAT THERE'S A
02:20:10.001 --> 02:20:11.469
DIFFICULTY HIRING QUALIFIED
02:20:11.536 --> 02:20:12.937
STAFF -- IN
02:20:13.004 --> 02:20:14.739
TERMS OF THE CIVIL SERVICE OR
02:20:14.806 --> 02:20:16.107
WHAT BARRIERS.
02:20:16.174 --> 02:20:17.709
YOU HAVE TO OVERCOME REGARDING
02:20:17.776 --> 02:20:20.345
THAT PARTICULAR ISSUE.
02:20:20.411 --> 02:20:22.614
SENATOR BILL I THINK THAT JUST A
02:20:22.680 --> 02:20:23.548
BASED UPON MY OWN EXPENSE
02:20:23.615 --> 02:20:24.482
VARIANCE IN ESPECIALLY WITH
02:20:24.549 --> 02:20:25.416
FINANCE AND AUDIT OVER THE LAST
02:20:25.483 --> 02:20:27.252
SEVERAL YEARS --
02:20:27.318 --> 02:20:28.219
WE'VE ALWAYS ENDED UP RECEIVING
02:20:28.286 --> 02:20:29.420
THAT THERE'S A DIFFICULT TIME
02:20:29.487 --> 02:20:32.590
AND HIRING --
02:20:32.657 --> 02:20:33.958
IT'S INTERESTING I WHETHER OR
02:20:34.025 --> 02:20:35.727
NOT IT'S ENDEMIC STATEWIDE WHAT
02:20:35.794 --> 02:20:36.728
WE WHAT WE ARE TOLD.
02:20:36.795 --> 02:20:38.296
IS THAT ARE VACANCY FACTORS
02:20:38.363 --> 02:20:39.264
ABOUT THE SAME AS OTHER AGENCIES
02:20:39.330 --> 02:20:41.699
WHICH IS IT ACCEPTABLE TO ME AN
02:20:41.766 --> 02:20:44.035
ACCEPTABLE ACCEPTABLE OUR STATE
02:20:44.102 --> 02:20:45.170
GOVERNMENT THAT'S RIGHT.
02:20:45.236 --> 02:20:46.437
YEAH SO --
02:20:46.504 --> 02:20:47.405
IF YOU KNOW IF WE HAVE TWO
02:20:47.472 --> 02:20:49.574
HUNDRED AND FOURTEEN POSITIONS --
02:20:49.641 --> 02:20:52.243
I'M QUESTIONING OF ON A
02:20:52.310 --> 02:20:54.712
REASONABLY FREQUENT RATIONS WHY
02:20:54.779 --> 02:20:55.847
AREN'T THEY FILLED.
02:20:55.914 --> 02:20:59.117
AND BASICALLY WHAT WE ARE WE'VE
02:20:59.184 --> 02:21:01.352
CONCLUDED IT THEY'RE NOT FILLED.
02:21:01.419 --> 02:21:02.687
BUT WE'RE CONCERT WE ARE
02:21:02.754 --> 02:21:04.656
BASICALLY CONSISTENT WITH OTHER
02:21:04.722 --> 02:21:06.424
AGENCIES IN THE STATE WHICH IS
02:21:06.491 --> 02:21:09.961
AN ACCEPTABLE ANSWER TO US --
02:21:10.028 --> 02:21:11.763
HOW WE RE ALLOCATE?
02:21:11.830 --> 02:21:13.598
POSITIONS IN TWO OTHERS THAT WE
02:21:13.665 --> 02:21:15.500
FIND MORE CRITICAL IS THE
02:21:15.567 --> 02:21:17.068
QUESTION WE'VE ASKED FOR
02:21:17.135 --> 02:21:18.636
INSTANCE.
02:21:18.703 --> 02:21:19.938
IN CONTRACT MANAGEMENT.
02:21:20.004 --> 02:21:23.775
SO -- WE I'M
02:21:23.842 --> 02:21:25.376
NOT SUGGESTING IT IS THE THERE
02:21:25.443 --> 02:21:27.645
ARE ISN'T TALENT IN THE STATE.
02:21:27.712 --> 02:21:29.480
IT'S WHETHER OR NOT WE CAN AT
02:21:29.547 --> 02:21:32.417
JUST HOW WE ARE.
02:21:32.483 --> 02:21:34.285
HOW THE US PHYSICIANS THAT WE
02:21:34.352 --> 02:21:37.288
HAVE WERE DESIGNATED IF WE CAN
02:21:37.355 --> 02:21:38.723
RE ALLOCATE THOSE POSITIONS
02:21:38.790 --> 02:21:40.491
AREAS THAT WE FEEL ARE MORE
02:21:40.558 --> 02:21:44.028
CRITICAL TO THE FILM AND OF THE
02:21:44.095 --> 02:21:44.295
OF THE --
02:21:44.362 --> 02:21:45.630
PROJECT.
02:21:45.697 --> 02:21:47.632
SO HERE AND COMPETITION WITH ALL
02:21:47.699 --> 02:21:50.335
THESE OTHER PEOPLE ARE HIRING
02:21:50.401 --> 02:21:51.836
PEOPLE.
02:21:51.903 --> 02:21:52.470
KIND OF WHAT YOU HAVE A UNIQUE
02:21:52.537 --> 02:21:55.306
JOB WHICH IS KIND OF OFF.
02:21:55.373 --> 02:21:56.941
LIKE IF I WAS AN ENGINEER OR
02:21:57.008 --> 02:21:58.309
PROJECT MANAGER I CERTAINLY WANT
02:21:58.376 --> 02:22:01.880
TO HAVE THIS JOB ON MY RESUME I
02:22:01.946 --> 02:22:03.147
MEAN I THINK IT.
02:22:03.214 --> 02:22:05.617
WE HAVE SOME ATTRACTION.
02:22:05.683 --> 02:22:08.753
BUT THE QUESTION IS --
02:22:08.820 --> 02:22:10.555
DO YOU HAVE TO WHEN YOU SAY TO
02:22:10.622 --> 02:22:12.523
CIVIL SERVICES THAT INCLUDE THE
02:22:12.590 --> 02:22:14.859
SAME SALARY.
02:22:14.926 --> 02:22:16.594
LEVEL IS A SALARY.
02:22:16.661 --> 02:22:19.931
YES LEVEL AN IMPEDIMENT TO
02:22:19.998 --> 02:22:21.666
NG BECAUSE IT'S SO LOW.
02:22:21.733 --> 02:22:23.101
THE STATE'S HOURS ARE WAY LOWER
02:22:23.167 --> 02:22:24.669
THAN --
02:22:24.736 --> 02:22:26.204
DISPARITIES.
02:22:26.271 --> 02:22:27.438
LOCAL GOVERNMENTS TRANSIT
02:22:27.505 --> 02:22:28.640
AGENCIES ALL OVER THE STATE
02:22:28.706 --> 02:22:30.875
THING.
02:22:30.942 --> 02:22:33.278
WE HAVE RIGHT NOW MORE THAN.
02:22:33.344 --> 02:22:34.879
THEN -- LIKE
02:22:34.946 --> 02:22:36.948
A CALTRANS DIRECTOR GETS THE
02:22:37.015 --> 02:22:40.351
SAME PAY IS A MID SIZE CITY AND
02:22:40.418 --> 02:22:42.220
MY PUBLIC WORKS DIRECTOR IN MY
02:22:42.287 --> 02:22:42.420
AREA.
02:22:42.487 --> 02:22:46.357
SO.
02:22:46.424 --> 02:22:47.025
WE COULD DO --
02:22:47.091 --> 02:22:48.126
WITH WE CURRENTLY HAVE WE HAVE --
02:22:48.192 --> 02:22:50.528
I THINK TODAY WE HAVE FORTY NINE
02:22:50.595 --> 02:22:51.829
CONTRACT MANAGERS.
02:22:51.896 --> 02:22:53.898
EVERY CONTRACT WE MET MANAGER WE
02:22:53.965 --> 02:22:54.899
HAVE IS A STATE EMPLOYEE
02:22:54.966 --> 02:22:55.199
[inaudible]
02:22:55.266 --> 02:22:56.701
OKAY GOOD.
02:22:56.768 --> 02:22:57.468
OKAY I THINK I THINK THIS IS
02:22:57.535 --> 02:22:59.904
IMPORTANT ISSUE IF YOU WANT TO
02:22:59.971 --> 02:23:02.106
RAMP UP THOUSAND GET THE
02:23:02.173 --> 02:23:03.474
POSITIONS FILLED YOU HAVE TO BE
02:23:03.541 --> 02:23:05.009
YOU HAVE.
02:23:05.076 --> 02:23:07.245
TO YEAH PAY THEM ADEQUATELY
02:23:07.312 --> 02:23:09.614
COMPETITIVE.
02:23:09.681 --> 02:23:10.548
YOU KNOW IF WE'RE GONNA HAVE A
02:23:10.615 --> 02:23:12.216
CIVIL SERVICE.
02:23:12.283 --> 02:23:13.952
I THINK THE IDEA OF HAVING THE
02:23:14.018 --> 02:23:15.186
DAUGHTERS RECOMMENDATION HAVING
02:23:15.253 --> 02:23:16.721
A TEAM.
02:23:16.788 --> 02:23:18.690
DAD HAS CONTINUITY THAT STICKS
02:23:18.756 --> 02:23:20.024
TOGETHER.
02:23:20.091 --> 02:23:20.858
THAT BECOMES --
02:23:20.925 --> 02:23:22.160
THE KNOWLEDGE CENTER OF THE
02:23:22.226 --> 02:23:23.761
PROJECT.
02:23:23.828 --> 02:23:25.163
TERMS OF MANAGING AND
02:23:25.229 --> 02:23:27.065
CONSTRUCTING THE PROJECT.
02:23:27.131 --> 02:23:28.366
HAVING THE KNOWLEDGE CENTER SO
02:23:28.433 --> 02:23:30.702
IMPORTANT IN COMPLETING A
02:23:30.768 --> 02:23:32.203
PROJECT ON TIME AND ON BUDGET.
02:23:32.270 --> 02:23:33.604
SO IF YOU CAN'T DO THAT BECAUSE
02:23:33.671 --> 02:23:35.873
OF THE COME COMPETITION ON THE
02:23:35.940 --> 02:23:38.042
SALARIES.
02:23:38.109 --> 02:23:41.479
THAT THAT THAT'S AN UNFAIR VERY
02:23:41.546 --> 02:23:41.746
FOR YOU.
02:23:41.813 --> 02:23:43.982
YEAH AND I THINK --
02:23:44.048 --> 02:23:45.883
TO ME THAT HAS TO BE ADDRESSED.
02:23:45.950 --> 02:23:47.485
IT IN A GREEN WITH THE
02:23:47.552 --> 02:23:48.886
RECOMMENDATION WE WANT THAT TEAM
02:23:48.953 --> 02:23:50.221
TO STICK TOGETHER.
02:23:50.288 --> 02:23:52.023
THROUGHOUT THE PROJECT SO.
02:23:52.090 --> 02:23:53.091
I I THINK YOU SHOULD TAKE A
02:23:53.157 --> 02:23:54.025
WASTE.
02:23:54.092 --> 02:23:58.830
ACCOMPLISH WHAT I TRYING TO SAY --
02:23:58.896 --> 02:24:00.598
IN TERMS OF STICKING THAT MAKING
02:24:00.665 --> 02:24:02.634
THAT THOSE PEOPLE STAY.
02:24:02.700 --> 02:24:05.370
AND AND BECOME THE KNOWLEDGE
02:24:05.436 --> 02:24:07.638
CENTER FOR AND AND URGENCY
02:24:07.705 --> 02:24:10.241
CENTER FOR THE PROJECT.
02:24:10.308 --> 02:24:12.110
YES SURE YOU CAN'T JUST KEEP
02:24:12.176 --> 02:24:14.012
HIGHER CANCELED BECAUSE THEY
02:24:14.078 --> 02:24:15.513
COMMON GOAL TO LEAVE.
02:24:15.580 --> 02:24:17.448
YOUR FULL.
02:24:17.515 --> 02:24:19.250
CONTROL AND I THINK THE AUTHORS
02:24:19.317 --> 02:24:21.352
CORRECT BECAUSE THE LESS.
02:24:21.419 --> 02:24:25.356
LESS OF A SENSE OF URGENCY ON
02:24:25.423 --> 02:24:27.992
THE PROJECT.
02:24:28.059 --> 02:24:32.964
WE CREATED SERVE --
02:24:33.031 --> 02:24:34.365
LESS IF.
02:24:34.432 --> 02:24:37.702
YOU DON'T HAVE THE SENSE OF
02:24:37.769 --> 02:24:41.305
URGENCY MAYBE A NEW.
02:24:41.372 --> 02:24:43.441
WE HAVE A TEAM.
02:24:43.508 --> 02:24:44.042
AND SEE IF YOU CREATE A GOOD
02:24:44.108 --> 02:24:44.842
TEAM.
02:24:44.909 --> 02:24:50.681
WITH GOOD TEAM LEADERS NIGHT.
02:24:50.748 --> 02:24:51.349
I DON'T HAVE ANY OTHER QUESTIONS
02:24:51.416 --> 02:24:53.484
I THINK THIS IS A VERY IMPORTANT
02:24:53.551 --> 02:24:57.522
STRUCTURAL THING.
02:24:57.588 --> 02:25:01.826
THE GUTS OF THE AUTUMN MY PAIN.
02:25:01.893 --> 02:25:03.161
COMMITTEE CAME DOWN COMMITTEE
02:25:03.227 --> 02:25:04.529
STAFF -- TO
02:25:04.595 --> 02:25:05.830
TAKE OF A LOOK AT IT I WAS DOWN
02:25:05.897 --> 02:25:07.899
THERE A COUPLE YEARS AGO --
02:25:07.965 --> 02:25:09.367
DURING A PROCESS TO SO I
02:25:09.434 --> 02:25:11.702
APPRECIATE HIS WILLINGNESS TO
02:25:11.769 --> 02:25:13.237
TAKE A DAY AT THIS TIME AND SHOW
02:25:13.304 --> 02:25:15.706
MY STAFF WHAT'S GOING ON IN REAL
02:25:15.773 --> 02:25:17.475
TIME --
02:25:17.542 --> 02:25:18.643
MISTER RICHARDS IN YOUR OPENING
02:25:18.709 --> 02:25:20.445
STATEMENT YOU SAID YOUR DECISION
02:25:20.511 --> 02:25:22.113
TO START CONSTRUCTION WAS THE
02:25:22.180 --> 02:25:22.613
DELIVER WELL THOUGHT OUT
02:25:22.680 --> 02:25:23.481
DECISION.
02:25:23.548 --> 02:25:25.683
YET IN THE AUDIT --
02:25:25.750 --> 02:25:26.551
THE AUTO QUOTE YOUR CHIEF
02:25:26.617 --> 02:25:27.852
ENGINEERS ST MOTIVATING FACTOR
02:25:27.919 --> 02:25:29.587
WAS THE DESIRE TO SHOW PROGRESS
02:25:29.654 --> 02:25:32.590
BECAUSE OUTSIDE GROUP FOR TRYING
02:25:32.657 --> 02:25:34.158
TO STOP THE PROJECT.
02:25:34.225 --> 02:25:36.861
EXPLAIN THIS DISCONNECT --
02:25:36.928 --> 02:25:39.097
I'M NOT YOU KNOW I QUESTIONS.
02:25:39.163 --> 02:25:40.164
AT THAT --
02:25:40.231 --> 02:25:41.532
INTERVIEW WITH OUR CHIEF
02:25:41.599 --> 02:25:42.600
ENGINEER.
02:25:42.667 --> 02:25:44.435
AND THE AUDITOR AND I DON'T KNOW
02:25:44.502 --> 02:25:45.503
IF IT.
02:25:45.570 --> 02:25:47.538
I DON'T KNOW IF IT WAS CAPTURED --
02:25:47.605 --> 02:25:48.739
THE WAY HE INTENDED IT BUT I
02:25:48.806 --> 02:25:50.741
CAN'T TELL YOU IT WASN'T --
02:25:50.808 --> 02:25:52.210
I CAN TELL YOU THAT THE DECISION
02:25:52.276 --> 02:25:53.611
THAT WAS MADE.
02:25:53.678 --> 02:25:56.848
BY THE BOARD WAS NOT IN RESPONSE
02:25:56.914 --> 02:25:59.484
AN OVERRIDING SENSE THAT WE HAD
02:25:59.550 --> 02:26:00.918
TO SHOW PROGRESS.
02:26:00.985 --> 02:26:02.620
THE DECISION THAT WAS MADE BY
02:26:02.687 --> 02:26:03.754
THE BOARD WAS.
02:26:03.821 --> 02:26:06.390
WAS CAPTURED IN THE OVER RIDING.
02:26:06.457 --> 02:26:07.759
CONCERN ABOUT DOING THE RIGHT
02:26:07.825 --> 02:26:09.260
THING.
02:26:09.327 --> 02:26:12.864
AND FACED WITH THE LOSS OF THREE
02:26:12.930 --> 02:26:13.931
AND A HALF BILLION DOLLARS OF
02:26:13.998 --> 02:26:14.999
FEDERAL FUNDING.
02:26:15.066 --> 02:26:17.568
SO LOOKING BACK ON THAT DECISION
02:26:17.635 --> 02:26:19.203
THAT YOU MADE NOW AND GET THE
02:26:19.270 --> 02:26:20.805
PUBLIC'S PERCEPTION OF THE
02:26:20.872 --> 02:26:21.639
OPTICS.
02:26:21.706 --> 02:26:23.541
THAT IT WAS --
02:26:23.608 --> 02:26:25.476
A MISTAKE.
02:26:25.543 --> 02:26:27.011
BASED ON THE ABILITY TO GET
02:26:27.078 --> 02:26:29.881
RIGHT AWAY AND WHAT NOT --
02:26:29.947 --> 02:26:32.216
WHAT CHANGES HAVE BEEN MADE?
02:26:32.283 --> 02:26:34.819
WELL --
02:26:34.886 --> 02:26:37.321
MISTER FRAZIER.
02:26:37.388 --> 02:26:39.724
WHEN I DO WHEN I GO BACK AND I
02:26:39.790 --> 02:26:40.625
LOOK AT ALL THE NUMBERS YET?
02:26:40.691 --> 02:26:41.259
WE GOT THREE AND A HALF BILLION
02:26:41.325 --> 02:26:41.759
DOLLARS FROM THE FEDERAL
02:26:41.826 --> 02:26:43.928
GOVERNMENT --
02:26:43.995 --> 02:26:45.663
AND I LOOK AT WHAT IS HAPPENED
02:26:45.730 --> 02:26:47.865
IN TERMS OF COST.
02:26:47.932 --> 02:26:49.567
OTHER TH A LOT OF THINGS THAT WE
02:26:49.634 --> 02:26:51.636
THAT WE ARE BEING CONSIDERED
02:26:51.702 --> 02:26:53.504
COST OVER RUNS.
02:26:53.571 --> 02:26:54.839
A REALLY UNDEFINED CAUGHT
02:26:54.906 --> 02:26:57.875
UNDEFINED AT THE TIME --
02:26:57.942 --> 02:26:59.277
SCOPE.
02:26:59.343 --> 02:27:00.645
WHICH WAS ON KNOWN.
02:27:00.711 --> 02:27:02.647
YES PRIMARILY IN THE AREAS OF
02:27:02.713 --> 02:27:04.248
THIRD PARTY AND RIGHT AND RIGHT
02:27:04.315 --> 02:27:05.850
OF WAY AMONG A COUPLE OR THREE
02:27:05.917 --> 02:27:07.919
OTHERS --
02:27:07.985 --> 02:27:09.487
WHICH TURNS OUT TO BE THE BALK
02:27:09.554 --> 02:27:11.889
OF WHAT THE ISSUES ARE BUT THOSE
02:27:11.956 --> 02:27:14.358
THOSE COSTS IF THEY HAD BEEN
02:27:14.425 --> 02:27:16.661
ABLE TO BE DEFINED AT THE OUTSET.
02:27:16.727 --> 02:27:17.995
WOULD HAVE BEEN CAN WOULD HAVE
02:27:18.062 --> 02:27:19.931
BEEN INCLUDED IN THE COST AS
02:27:19.997 --> 02:27:21.799
OPPOSED TO DATE --
02:27:21.866 --> 02:27:23.467
CHARACTERIZATION AND THAT THEIR
02:27:23.534 --> 02:27:24.468
OVER RUNS WE KNEW THEY WERE
02:27:24.535 --> 02:27:26.737
THERE WE ATTEMPTED TO PROVIDE
02:27:26.804 --> 02:27:27.872
FOR THEM WITH PROVISIONAL
02:27:27.939 --> 02:27:30.708
FUNDING CONTINGENCY WE CLEARLY
02:27:30.775 --> 02:27:32.143
UNDER ESTIMATED BOTH.
02:27:32.210 --> 02:27:35.613
CONTINUE CONTINGENCY FUNDS
02:27:35.680 --> 02:27:37.148
PROVISIONAL FUNDS.
02:27:37.215 --> 02:27:39.417
THAT AND THE S. WE AS THE
02:27:39.483 --> 02:27:41.419
CONTRACTS IN THE AGREEMENTS WITH
02:27:41.485 --> 02:27:42.720
OUR THIRD PARTY --
02:27:42.787 --> 02:27:44.088
PARTNERS --
02:27:44.155 --> 02:27:46.090
AS WELL AS UTILITY RELOCATIONS
02:27:46.157 --> 02:27:47.525
BECAMEMORE --
02:27:47.592 --> 02:27:49.927
COULD HELP CLEAR --
02:27:49.994 --> 02:27:52.230
WE INCORPORATED DOES IN THE TWO
02:27:52.296 --> 02:27:53.497
THOUSAND AND EIGHTEEN PLAN.
02:27:53.564 --> 02:27:56.801
THE THE NEGOTIATIONS THAT WENT
02:27:56.867 --> 02:27:58.636
ON BEHIND THE SCENES AND DURING
02:27:58.703 --> 02:28:01.205
THAT PERIOD OF TIME BETWEEN THE
02:28:01.272 --> 02:28:02.740
TIME WE STARTED CONSTRUCTION.
02:28:02.807 --> 02:28:05.409
AND INTO THE TWO THOUSAND
02:28:05.476 --> 02:28:06.877
SEVENTEEN TIME FRAME WE'RE
02:28:06.944 --> 02:28:09.113
PRETTY COMPLEX --
02:28:09.180 --> 02:28:11.082
WITH A LOT OF PUSHING AND
02:28:11.148 --> 02:28:12.750
PULLING WITH REGARDS TO WHAT.
02:28:12.817 --> 02:28:15.286
THE THIRD PARTY PARTNERS ARE AT
02:28:15.353 --> 02:28:17.888
CONTRACTORS ARE THE THIRD PARTY --
02:28:17.955 --> 02:28:19.924
AGREEMENTS THAT IF PEOPLE ON THE
02:28:19.991 --> 02:28:20.658
OTHER SIDE OF THOSE AGREEMENTS
02:28:20.725 --> 02:28:23.594
WANTED --
02:28:23.661 --> 02:28:26.464
INTRUSION BERRIES WERE ONE OF
02:28:26.530 --> 02:28:27.331
ROACH.
02:28:27.398 --> 02:28:28.432
SHOW -- THEY
02:28:28.499 --> 02:28:29.333
WEREN'T THINGS THAT WE COULD
02:28:29.400 --> 02:28:31.569
EITHER ONE DIVINE DEFINED
02:28:31.636 --> 02:28:33.170
CLEARLY BEFORE NOW.
02:28:33.237 --> 02:28:36.207
AND SECONDLY WITHOUT QUESTION.
02:28:36.274 --> 02:28:37.375
THEY WERE MUCH HIGHER THAN WHAT
02:28:37.441 --> 02:28:39.310
WE CONTEMPLATED BUT WHEN WE LOOK
02:28:39.377 --> 02:28:42.146
AGAIN IT DID THIS MAKE SENSE. TO
02:28:42.213 --> 02:28:43.581
TAKE THREE AND A HALF BILLION
02:28:43.648 --> 02:28:45.383
DOLLARS.
02:28:45.449 --> 02:28:46.651
THOSE COST WOULD HAVE BEEN THERE
02:28:46.717 --> 02:28:48.085
IF WE COULD HAVE TO FIND AND
02:28:48.152 --> 02:28:49.053
THEN WE WOULD HAVE LOVED IT THEN
02:28:49.120 --> 02:28:50.321
THE ONES DOING THAT AND WITH A
02:28:50.388 --> 02:28:52.256
SHORT CONVERSATION I HAD WITH
02:28:52.323 --> 02:28:53.891
YOU EARLIER WITH REGARDS TO YOUR
02:28:53.958 --> 02:28:55.359
DEVELOPMENT CONSTRUCTION
02:28:55.426 --> 02:28:56.227
BACKGROUND WE BOTH UNDERSTAND
02:28:56.294 --> 02:28:57.328
THAT.
02:28:57.395 --> 02:28:58.863
AND WE WOULD WE WOULD.
02:28:58.929 --> 02:29:01.465
HAVE TO TAKE SOME PRETTY SEVERE --
02:29:01.532 --> 02:29:03.534
CONDITIONS BEFORE WE WOULD AGREE
02:29:03.601 --> 02:29:05.603
TO START SOMETHING WITH THE LACK
02:29:05.670 --> 02:29:07.371
OF INFORMATION THAT WE HAD IN
02:29:07.438 --> 02:29:08.606
CERTAIN AREAS.
02:29:08.673 --> 02:29:10.474
BUT THREE AND A HALF BILLION
02:29:10.541 --> 02:29:12.410
DOLLARS OF FUNDING THAT WE HAD
02:29:12.476 --> 02:29:14.345
NO -- REASON
02:29:14.412 --> 02:29:15.413
TO BELIEVE WOULD BE AVAILABLE
02:29:15.479 --> 02:29:17.548
LETTER LATER --
02:29:17.615 --> 02:29:19.650
HOW WE HOW I LOOK AT THAT RIGHT
02:29:19.717 --> 02:29:21.585
NOW WE'RE FACED ARE WE'VE
02:29:21.652 --> 02:29:22.687
ALREADY --
02:29:22.753 --> 02:29:25.222
EXPANDED A HUNDRED MILLION TO A
02:29:25.289 --> 02:29:28.726
FEES WITH ONE OF OUR CONTRACTORS --
02:29:28.793 --> 02:29:30.928
WE THINK THAT WE ARE LIKELY
02:29:30.995 --> 02:29:33.431
FACING MAYBE AS MUCH AS THREE
02:29:33.497 --> 02:29:35.633
HUNDRED AND FIFTY MILLION MORE.
02:29:35.700 --> 02:29:38.302
IN THE LAKE GOOD DELAY COST IN
02:29:38.369 --> 02:29:40.671
LARGE EX CONVICTS REASON FOR
02:29:40.738 --> 02:29:41.505
BEING.
02:29:41.572 --> 02:29:43.274
AFTER WE STARTED CONSTRUCTION
02:29:43.341 --> 02:29:45.209
WE'RE GETTING READY WE WERE HELD
02:29:45.276 --> 02:29:46.911
UP FOR OVER A YEAR BECAUSE OF
02:29:46.977 --> 02:29:50.047
LIQUID LITIGATION --
02:29:50.114 --> 02:29:51.082
THAT'S WHY IT IS IT WAS
02:29:51.148 --> 02:29:52.616
MENTIONED WE HELD BACK ON IT
02:29:52.683 --> 02:29:55.953
WHICH IS IT WAS A IT WAS A
02:29:56.020 --> 02:29:58.856
NOTICE TO BEGAN TO THE C. P. ONE
02:29:58.923 --> 02:30:01.225
CONTRACTOR BUT WITH MAJOR
02:30:01.292 --> 02:30:03.260
LIMITATIONS SO WE COULD HIGH.
02:30:03.327 --> 02:30:03.761
TRY.
02:30:03.828 --> 02:30:05.296
TO RESOLVE THE ISSUE AND AT THE
02:30:05.363 --> 02:30:07.832
SAME TIME REDUCE WHAT THE
02:30:07.898 --> 02:30:10.234
EXPOSURE WAS GONNA BE --
02:30:10.301 --> 02:30:11.969
BUT WHEN WE LOOK AT ALL OF THAT.
02:30:12.036 --> 02:30:13.437
THE STATE OF CALIFORNIA GOT
02:30:13.504 --> 02:30:14.839
THREE AND A HALF BILLION DOLLARS
02:30:14.905 --> 02:30:16.507
IN WITH THAT MONEY IT IS BEEN
02:30:16.574 --> 02:30:17.808
BUILDING ASSETS.
02:30:17.875 --> 02:30:21.178
OF THAT THREE AND A HALF MILLION
02:30:21.245 --> 02:30:21.779
FIVE HUNDRED THOUSAND IN ROUND
02:30:21.846 --> 02:30:23.948
NUMBERS HAS BEEN LOST TO THE
02:30:24.014 --> 02:30:24.915
DELAY.
02:30:24.982 --> 02:30:26.617
I STILL THINK THAT THE STATE OF
02:30:26.684 --> 02:30:28.452
CALIFORNIA IS THE BENEFICIARY OF
02:30:28.519 --> 02:30:30.121
ABOUT THREE BILLION DOLLARS.
02:30:30.187 --> 02:30:31.989
OF ASSETS THAT IT DIDN'T HAVE
02:30:32.056 --> 02:30:35.393
BEFORE AND ABSENT THAT --
02:30:35.459 --> 02:30:36.994
WE WOULD PROBABLY BE SITTING
02:30:37.061 --> 02:30:38.696
HERE IF WE WERE EVEN SITTING
02:30:38.763 --> 02:30:39.730
HERE TODAY AT ALL.
02:30:39.797 --> 02:30:41.799
BEING QUESTION IS WHY HAVEN'T WE
02:30:41.866 --> 02:30:45.102
A COP RE NEVER ABLE TO BUILD
02:30:45.169 --> 02:30:46.537
ANYTHING.
02:30:46.604 --> 02:30:47.505
KING ALL THOSE THINGS INTO
02:30:47.571 --> 02:30:49.540
ACCOUNT WE HAD A LOT A LOT OF
02:30:49.607 --> 02:30:51.742
INFORMATION ABOUT WHAT THE COST
02:30:51.809 --> 02:30:54.011
OF CONSTRUCTION WERE IN THE C.
02:30:54.078 --> 02:30:54.812
P.'S.
02:30:54.879 --> 02:30:55.746
BUT WE DIDN'T HAVE THE
02:30:55.813 --> 02:30:57.448
INFORMATION ON THE AREAS THAT I
02:30:57.515 --> 02:30:58.983
TOLD YOU ABOUT.
02:30:59.049 --> 02:31:00.684
AND WE WERE ALSO TAKING
02:31:00.751 --> 02:31:02.286
ADVANTAGE OF SOMETHING ELSE WE
02:31:02.353 --> 02:31:03.654
WERE IN A MASSIVE RECESSION.
02:31:03.721 --> 02:31:05.556
IN TWO THOUSAND AND TEN AND
02:31:05.623 --> 02:31:06.857
MOVING FORWARD.
02:31:06.924 --> 02:31:08.626
WE WERE THE BENEFICIARY OF LOWER
02:31:08.692 --> 02:31:10.261
CONSTRUCTION COST WHEN WE WENT
02:31:10.327 --> 02:31:12.496
AHEAD AND MOVE FORWARD ON CP.
02:31:12.563 --> 02:31:14.365
ONE THAT CP ONE CONTRACT CAME
02:31:14.432 --> 02:31:16.100
AND THREE HUNDRED MILLION
02:31:16.167 --> 02:31:18.702
DOLLARS LESS THAN ARE AND SHE
02:31:18.769 --> 02:31:21.939
ENGINEERS ESTIMATE.
02:31:22.006 --> 02:31:25.376
THANK YOU FOR THAT EXPLANATION --
02:31:25.443 --> 02:31:28.913
CAN WE TALK ABOUT THE THE BRIDGE
02:31:28.979 --> 02:31:29.213
[inaudible]
02:31:29.280 --> 02:31:30.714
THAT -- IT
02:31:30.781 --> 02:31:34.151
WAS INITIALLY --
02:31:34.218 --> 02:31:35.686
DIDN'T MAKE IT --
02:31:35.753 --> 02:31:37.421
UNION PACIFIC STANDARDS SO THE
02:31:37.488 --> 02:31:39.657
OUGHT TO REPORT --
02:31:39.723 --> 02:31:41.792
THAT THE STORY WAS TOLD THAT THE
02:31:41.859 --> 02:31:44.128
CONSTRUCTION CONTRACTOR SHOULD
02:31:44.195 --> 02:31:46.063
BEAR THE COST OF THE REDESIGN.
02:31:46.130 --> 02:31:48.466
AND THE BEAT BECAUSE OF THE
02:31:48.532 --> 02:31:49.567
AUTHORITIES.
02:31:49.633 --> 02:31:50.801
LATER APPROVAL --
02:31:50.868 --> 02:31:51.635
TO APPROVED A CHANGE ORDER
02:31:51.702 --> 02:31:55.739
AGAINST THE ADVICE --
02:31:55.806 --> 02:31:57.074
CHANGER OR WE JUST ALWAYS TO
02:31:57.141 --> 02:31:58.309
FIND -- THE
02:31:58.375 --> 02:32:01.111
EXPERTS TO TELL THE AUTHORITY OF
02:32:01.178 --> 02:32:03.380
WHAT NOT TO DO AND JUST MOVE
02:32:03.447 --> 02:32:05.249
FORWARD WITH IMPUNITY --
02:32:05.316 --> 02:32:08.252
I CAN'T GIVE YOU THE EXACT --
02:32:08.319 --> 02:32:09.620
THE THE EXACT --
02:32:09.687 --> 02:32:11.188
CONDITION WITH REGARDS TO THAT
02:32:11.255 --> 02:32:12.389
REQUEST.
02:32:12.456 --> 02:32:13.824
ARE THAT THAT BIT OF ADVICE
02:32:13.891 --> 02:32:15.659
WE'VE GOT BUT I CAN I CAN
02:32:15.726 --> 02:32:17.428
SUGGESTION ENERGY IN GENERAL
02:32:17.495 --> 02:32:18.295
SENSE.
02:32:18.362 --> 02:32:19.997
WE CERTAINLY DO HAVE --
02:32:20.064 --> 02:32:23.067
A LOT OF OUTSIDE CONSULTANTS.
02:32:23.133 --> 02:32:27.605
WE FIRED FOR AS FOR AS THEIR IT
02:32:27.671 --> 02:32:30.708
WE WE ACCEPT THE ADVICE AND WE
02:32:30.774 --> 02:32:32.276
CONSIDER IT WITH EVERYTHING ELSE
02:32:32.343 --> 02:32:33.277
THAT WE KNOW THAT MAY BE GOING
02:32:33.344 --> 02:32:35.946
ON AND ON A SPECIFIC ISSUE.
02:32:36.013 --> 02:32:37.448
IN THIS --
02:32:37.515 --> 02:32:39.083
ONE I SUSPECTED.
02:32:39.149 --> 02:32:40.518
THE ADVICE MAY HAVE BEEN GIVEN
02:32:40.584 --> 02:32:42.887
HERE AND BY THE TIME THAT WE HAD
02:32:42.953 --> 02:32:44.788
INTERVIEWED AND WE HAD ALL THE
02:32:44.855 --> 02:32:46.156
FACTS FROM.
02:32:46.223 --> 02:32:48.158
OTHER SOURCES ABOUT THE SAME
02:32:48.225 --> 02:32:50.327
THING WE MAY NOT TAKE THE ADVICE
02:32:50.394 --> 02:32:51.829
OF THE CONSULTANT EVERY INSTANCE.
02:32:51.896 --> 02:32:53.764
AND WHAT I THINK HAPPENS HERE
02:32:53.831 --> 02:32:54.832
AND WHAT'S HAPPENED THROUGHOUT
02:32:54.899 --> 02:32:57.668
THIS WHICH IS REALLY --
02:32:57.735 --> 02:33:00.638
TROUBLING AND EMBARRASSING IS
02:33:00.704 --> 02:33:03.607
THAT WE HAVE NOT APPROPRIATELY --
02:33:03.674 --> 02:33:05.876
RECORDED KEY AND DOCUMENTATION
02:33:05.943 --> 02:33:08.379
WHY WE'VE DONE THINGS AND I CAN
02:33:08.445 --> 02:33:10.714
SIT HERE AND JUST TELL YOU IT'S
02:33:10.781 --> 02:33:11.982
ON INEXCUSABLE.
02:33:12.049 --> 02:33:13.617
AND I AM FRANKLY OF EMBARRASSED
02:33:13.684 --> 02:33:15.319
ABOUT IT IT'S CERTAINLY NOT WHAT
02:33:15.386 --> 02:33:18.622
WE HAVE EVER INTENDED --
02:33:18.689 --> 02:33:20.724
IN OUR FINANCE AND AUDIT --
02:33:20.791 --> 02:33:22.826
MEETINGS WHICH OCCUR MONTHLY AND
02:33:22.893 --> 02:33:24.929
I SUSPECT I I AM SURE I
02:33:24.995 --> 02:33:26.397
RECOGNIZE SOME OF YOUR STAFF
02:33:26.463 --> 02:33:27.731
MEMBERS HERE WHO HAVE.
02:33:27.798 --> 02:33:29.099
MADE A HABIT OF COMING TO THOSE
02:33:29.166 --> 02:33:31.435
BUT I THINK THAT THEY PROBABLY
02:33:31.502 --> 02:33:32.770
HAVE BEEN ABLE TO REPORT BACK.
02:33:32.836 --> 02:33:34.572
THOSE ARE PRETTY --
02:33:34.638 --> 02:33:36.240
THOSE ARE PRETTY STRAIGHT UP
02:33:36.307 --> 02:33:37.775
STERN MEETINGS.
02:33:37.841 --> 02:33:40.110
AND LOOKING.
02:33:40.177 --> 02:33:43.414
FOR LOOKING FOR THEY WERE NOT
02:33:43.480 --> 02:33:45.215
SATISFIED WITH.
02:33:45.282 --> 02:33:46.216
SO DO YOU THINK THE AUTHORITY
02:33:46.283 --> 02:33:49.887
STAFF IS KEPT YOU WELL INFORMED
02:33:49.954 --> 02:33:50.187
[inaudible]
02:33:50.254 --> 02:33:54.491
AS DIRECTOR.
02:33:54.558 --> 02:33:55.059
THAT'S TRUE THAT'S A GOOD
02:33:55.125 --> 02:33:59.096
QUESTION I THINK THAT --
02:33:59.163 --> 02:34:01.632
I THINK WE'VE GOT A GREAT TEAM.
02:34:01.699 --> 02:34:05.269
I THINK AT THE WE HAVE WE HAVE
02:34:05.336 --> 02:34:07.571
AYE THIS YEAR IS THAT I SHOULD
02:34:07.638 --> 02:34:10.140
AND I SUSPECT ALL OF YOU WOULD
02:34:10.207 --> 02:34:10.307
IT.
02:34:10.374 --> 02:34:11.842
WOULD CONCUR --
02:34:11.909 --> 02:34:14.311
WE WERE MORE THAN FORTUNATE TO
02:34:14.378 --> 02:34:15.813
HAVE BRIAN KELLY JOINED.
02:34:15.879 --> 02:34:20.484
AS A CEO OF THIS ORGANIZATION.
02:34:20.551 --> 02:34:21.785
JOE HEDGES JUST COME --
02:34:21.852 --> 02:34:23.354
WITH A VERY IN DEPTH
02:34:23.420 --> 02:34:25.055
CONSTRUCTION BACKGROUND AND A
02:34:25.122 --> 02:34:26.991
HUGE PROBLEM ON A PROJECT THAT
02:34:27.057 --> 02:34:27.958
HE WAS.
02:34:28.025 --> 02:34:30.227
RESPONSIBLE FOR UP IN SEATTLE A
02:34:30.294 --> 02:34:32.162
TUNNEL PROJECT.
02:34:32.229 --> 02:34:35.633
GOING DOWN BILL THAT THAT LEVEL --
02:34:35.699 --> 02:34:37.635
I BELIEVE THAT OUR SENIOR
02:34:37.701 --> 02:34:39.136
MANAGEMENT --
02:34:39.203 --> 02:34:40.804
I'M PROUD OF EVERYONE OF THEM.
02:34:40.871 --> 02:34:42.506
TO BREAK DOWN THAT WE HAVE I
02:34:42.573 --> 02:34:44.808
THINK IS NOT IN PEOPLE NOT
02:34:44.875 --> 02:34:46.310
TRYING TO DO THE RIGHT THING.
02:34:46.377 --> 02:34:49.346
I THINK IT'S I THINK IT'S AND AS
02:34:49.413 --> 02:34:51.482
DEMONSTRATED BY THIS AUDIT.
02:34:51.548 --> 02:34:53.550
IT'S MORE IN DAMAGE IT'S IT'S
02:34:53.617 --> 02:34:54.051
YEAH IN.
02:34:54.118 --> 02:34:55.686
THE DOCUMENTATION NOT BEING
02:34:55.753 --> 02:34:59.123
THERE TO THE PROBLEMS ARE.
02:34:59.189 --> 02:35:00.524
WHICH IS WHY THIS WHOLE THING
02:35:00.591 --> 02:35:03.027
WITH REGARDS TO CONTRACT MANAGE --
02:35:03.093 --> 02:35:05.529
CAN'T CONTRACT MANAGEMENT CAME
02:35:05.596 --> 02:35:07.865
AS A RESULT OF THE FINANCE AND
02:35:07.931 --> 02:35:08.832
AUDIT MEETING OUR COMMITTEE.
02:35:08.899 --> 02:35:10.768
ARE REQUIRING AN INTERNAL AUDIT
02:35:10.834 --> 02:35:13.570
ON ONE OF OUR CONTRACTS IN TWO
02:35:13.637 --> 02:35:14.171
THOUSAND FIFTEEN AND WE DIDN'T
02:35:14.238 --> 02:35:15.039
LIKE THE RESULTS.
02:35:15.105 --> 02:35:17.574
SO WE THEN HAD THE INTERNAL
02:35:17.641 --> 02:35:18.942
AUDIT OFFICE.
02:35:19.009 --> 02:35:22.012
THAT AUDIT ALL OF THEM AND WE
02:35:22.079 --> 02:35:23.781
LIKE IT EVEN LESS.
02:35:23.847 --> 02:35:24.915
AND THE DIRECTION WE THEN YEAH
02:35:24.982 --> 02:35:26.216
IT GAVE US WE WANT POLICIES AND
02:35:26.283 --> 02:35:27.718
PROCEDURES TO BE DRAFTED AND
02:35:27.785 --> 02:35:29.086
APPROVED.
02:35:29.153 --> 02:35:31.855
WHICH OCCURRED LE IN TWO
02:35:31.922 --> 02:35:32.423
THOUSAND AND SEVENTEEN AS I
02:35:32.489 --> 02:35:33.223
RECALL.
02:35:33.290 --> 02:35:36.527
AND BY THE END OF TWO THOUSAND
02:35:36.593 --> 02:35:37.494
SEVENTEEN ALL OF OUR CONTRACT
02:35:37.561 --> 02:35:39.196
MANAGERS --
02:35:39.263 --> 02:35:41.365
ALL STATE EMPLOYEES RECEIVED A
02:35:41.432 --> 02:35:44.001
TRAINING AND CERTIFICATION
02:35:44.068 --> 02:35:44.902
INTERNALLY.
02:35:44.968 --> 02:35:47.404
AT FOR THE JOBS THEY WERE
02:35:47.471 --> 02:35:48.439
SUPPOSED TO BE DOING.
02:35:48.505 --> 02:35:50.407
WE FELT COMFORTABLE ABOUT THAT
02:35:50.474 --> 02:35:51.942
AND THE STAFF KEPT AS WELL
02:35:52.009 --> 02:35:52.743
ADVISED OF THAT.
02:35:52.810 --> 02:35:53.811
AND I THINK THAT THEY'VE DONE
02:35:53.877 --> 02:35:55.145
THAT PRETTY MUCH.
02:35:55.212 --> 02:35:56.080
ALL UP AND DOWN BASED UPON THE
02:35:56.146 --> 02:35:59.650
INFORMATION WHAT I DO THINK IS
02:35:59.717 --> 02:36:01.318
WE'VE GOT TO IMPROVE.
02:36:01.385 --> 02:36:03.287
DRAMATICALLY THE INFORMATION
02:36:03.353 --> 02:36:04.354
THAT --
02:36:04.421 --> 02:36:06.090
STAFF MEMBERS KNOW AND THE ONLY
02:36:06.156 --> 02:36:07.825
WAY I KNOW TO DO THAT IS TO
02:36:07.891 --> 02:36:09.727
ADEQUATELY DOCUMENT.
02:36:09.793 --> 02:36:12.329
WHAT WE'RE DOING SO APPRECIATE
02:36:12.396 --> 02:36:13.397
HAD THE ADDITIONAL INFORMATION
02:36:13.464 --> 02:36:15.099
THE BASICALLY THE QUESTION ARE
02:36:15.165 --> 02:36:16.633
YOU WILL INFORM MY STAFF I AM ON
02:36:16.700 --> 02:36:17.568
A DAILY BASIS YES?
02:36:17.634 --> 02:36:18.802
SO IF THAT'S THE CASE THEN HOW
02:36:18.869 --> 02:36:20.738
FAR BACK WERE YOU INFORMED ABOUT
02:36:20.804 --> 02:36:22.139
THE ON GOING PROCEDURAL PROBLEMS
02:36:22.206 --> 02:36:27.177
WITH CONTRACT OVERSIGHT AND
02:36:27.244 --> 02:36:27.478
MANAGEMENT.
02:36:27.544 --> 02:36:29.980
AS A DIRECTOR.
02:36:30.047 --> 02:36:31.014
I THINK THAT --
02:36:31.081 --> 02:36:32.783
I CAN'T I CAN'T SUGGEST TO YOU
02:36:32.850 --> 02:36:34.651
THAT -- DEBT
02:36:34.718 --> 02:36:35.886
THAT HE HAS COME TO MEET
02:36:35.953 --> 02:36:37.154
DIRECTLY WITH SOMEBODY
02:36:37.221 --> 02:36:38.422
SUGGESTING THAT.
02:36:38.489 --> 02:36:40.290
I THINK THAT WE DISCUSS THINGS
02:36:40.357 --> 02:36:41.892
LIKE THAT AND FINANCE AND AUDIT
02:36:41.959 --> 02:36:43.694
AND WE GIVE DIRECTION FOR
02:36:43.761 --> 02:36:45.529
ADDITIONAL INFORMATION.
02:36:45.596 --> 02:36:47.064
SO HOW DO YOU PROPOSE TO FIX
02:36:47.131 --> 02:36:48.232
THIS -- THIS
02:36:48.298 --> 02:36:52.536
DISCONNECT.
02:36:52.603 --> 02:36:54.471
AND IS IT SOMETHING MONEY WITH
02:36:54.538 --> 02:36:55.639
YOUR AND BASICALLY IT'S THE
02:36:55.706 --> 02:36:57.875
INTERFACE WITH YOU.
02:36:57.941 --> 02:37:00.511
AS A DIRECTOR WAS STAFF.
02:37:00.577 --> 02:37:02.179
LIGHTING UP YEAH COME ON AND
02:37:02.246 --> 02:37:02.880
UNDERSTANDING WHAT'S.
02:37:02.946 --> 02:37:04.148
I I THINK THAT WE'VE ACTUALLY
02:37:04.214 --> 02:37:05.082
ALREADY MOVED IN THAT I THINK
02:37:05.149 --> 02:37:05.749
WHICH I THOUGHT WHAT'S HAPPENED
02:37:05.816 --> 02:37:07.284
HERE.
02:37:07.351 --> 02:37:08.986
I WOULD GIVE ANYTHING IF.
02:37:09.052 --> 02:37:12.422
WE WERE DOING THIS SHOT A YEAR
02:37:12.489 --> 02:37:13.290
FROM NOW.
02:37:13.357 --> 02:37:14.258
AND AND THAT'S NOT A COP OUT
02:37:14.324 --> 02:37:14.558
[inaudible]
02:37:14.625 --> 02:37:18.028
BUT PRETTY EVERYTHING THAT I
02:37:18.095 --> 02:37:19.830
HAVE SEEN IN CORPORATE IT IN THE
02:37:19.897 --> 02:37:21.832
AUDIT.
02:37:21.899 --> 02:37:22.933
AND ALL OF WHICH I AGREE.
02:37:23.000 --> 02:37:25.068
ARE THINGS THAT WE HAVE LOOK AT
02:37:25.135 --> 02:37:26.537
INTO SOME GREAT EXTENT
02:37:26.603 --> 02:37:28.872
INTERNALLY WITH OUR OWN INTERNAL
02:37:28.939 --> 02:37:29.706
AUDIT AND THROUGH FINANCE AND
02:37:29.773 --> 02:37:31.175
AUDIT -- AND
02:37:31.241 --> 02:37:32.676
THESE WERE ALL IN THE PROCESS OF
02:37:32.743 --> 02:37:34.411
BEING IMPLEMENTED IF THERE'S ONE
02:37:34.478 --> 02:37:35.179
THING I'VE BEEN REALLY
02:37:35.245 --> 02:37:37.347
DISAPPOINTED BY IS THAT BECAUSE
02:37:37.414 --> 02:37:40.217
WE THAT WE WE HAVE BEEN TOO SLOW.
02:37:40.284 --> 02:37:42.886
ON THE OVERSIGHT OF OUR CONTRACT
02:37:42.953 --> 02:37:45.455
MANAGERS WHICH IS VERY CLEAR
02:37:45.522 --> 02:37:46.490
WITH WHAT THE AUDITOR AUDITOR
02:37:46.557 --> 02:37:47.424
FOUND OUT.
02:37:47.491 --> 02:37:49.560
AND I CAN TELL YOU WITH REGARDS
02:37:49.626 --> 02:37:50.327
TO THAT.
02:37:50.394 --> 02:37:52.262
THAT THE ASSESSMENT OF WHAT
02:37:52.329 --> 02:37:54.031
YOU'RE DOING IN THE FIELD IS
02:37:54.097 --> 02:37:55.833
UNDER WAY NOW AND WILL BE
02:37:55.899 --> 02:37:57.601
COMPLETED WITH ALL.
02:37:57.668 --> 02:38:00.704
ROUGHLY FIFTY OF THEM.
02:38:00.771 --> 02:38:02.673
BY THE END OF FEBRUARY --
02:38:02.739 --> 02:38:03.607
I WOULD HAVE ASSUMED AND I DID
02:38:03.674 --> 02:38:04.741
NOT KNOW THAT --
02:38:04.808 --> 02:38:06.677
IN HAND FRANKLY.
02:38:06.743 --> 02:38:07.778
IT'S ON ME I DIDN'T ASK THE
02:38:07.845 --> 02:38:09.680
QUESTION WHERE ARE WE ON THE
02:38:09.746 --> 02:38:10.147
OVERSIGHT [inaudible]
02:38:10.214 --> 02:38:13.083
SO.
02:38:13.150 --> 02:38:13.617
THE THIRTY CAN CURRENTLY
02:38:13.684 --> 02:38:15.953
AUDITOR'S SUGGESTION THAT THE
02:38:16.019 --> 02:38:17.221
CONTRACT MANAGE SUPPORT.
02:38:17.287 --> 02:38:20.190
OF IS UNDERSTAFFED AND TO BE
02:38:20.257 --> 02:38:23.460
STAFFED WITH STATE WORKERS
02:38:23.527 --> 02:38:26.463
INSTEAD OF CONTRACT COMPLIANCE.
02:38:26.530 --> 02:38:28.298
HOWEVER NOT ASKING THIS UNTIL.
02:38:28.365 --> 02:38:31.702
FOR THIS UNTIL TWENTY TWENTY
02:38:31.768 --> 02:38:32.636
TWENTY TWENTY ONE IN DC PEAK.
02:38:32.703 --> 02:38:35.305
OF WHEN EARLIER.
02:38:35.372 --> 02:38:36.273
I THINK WE SHOULD MOVE IT BACK
02:38:36.340 --> 02:38:37.341
ALSO.
02:38:37.407 --> 02:38:39.943
IT SO IT WILL BE ON MY AGENDA AT
02:38:40.010 --> 02:38:42.779
OUR NEXT FINANCE NOTED MEETING.
02:38:42.846 --> 02:38:44.948
K. THE THE SOLUTION WITH AND
02:38:45.015 --> 02:38:47.718
THANK YOU VERY MUCH FOR THAT --
02:38:47.784 --> 02:38:49.453
AND SENATOR BILL IT MENTION THAT
02:38:49.519 --> 02:38:50.387
YOU WOULD TALK ABOUT --
02:38:50.454 --> 02:38:55.192
OR HIT MENTIONED SOMETHING ABOUT --
02:38:55.259 --> 02:38:56.059
PAYROLL LIMITATIONS OR COMPARE
02:38:56.126 --> 02:38:58.729
WHAT YOU PAY THE THE STAFF --
02:38:58.795 --> 02:39:00.664
WHEN YOU LOOK AT HOW WAS IT
02:39:00.731 --> 02:39:01.598
ESTABLISHED BY THE AUTHORITY
02:39:01.665 --> 02:39:03.800
WHAT WOULD BE PAID?
02:39:03.867 --> 02:39:07.671
YOU KNOW I AND MISS FRASIER I'M
02:39:07.738 --> 02:39:10.741
I DON'T WANT AND I IF I AND
02:39:10.807 --> 02:39:13.110
ABOUT SENIOR SENIOR MANAGEMENT --
02:39:13.176 --> 02:39:15.946
WE'VE BEEN TRYING WE'VE WE'VE
02:39:16.013 --> 02:39:18.215
WE'VE WE'VE HIRED PEOPLE AND
02:39:18.282 --> 02:39:19.750
SENIOR MANAGEMENT POSITIONS TO
02:39:19.816 --> 02:39:23.453
RUN A SEVENTY SEVEN BILLION
02:39:23.520 --> 02:39:24.988
DOLLAR PROJECT THAT.
02:39:25.055 --> 02:39:26.957
THROUGH THE PROCESS PLEASE DON'T
02:39:27.024 --> 02:39:27.824
TAKE THIS PERSONALLY.
02:39:27.891 --> 02:39:29.092
BUT THROUGH THE PROCESS THROUGH
02:39:29.159 --> 02:39:31.995
THE PROCESS OF TRYING TO FIND --
02:39:32.062 --> 02:39:34.531
CANDIDATES FOR THESE POSITIONS
02:39:34.598 --> 02:39:36.433
ME NOBODY WAS YOU KNOW WE COULD
02:39:36.500 --> 02:39:37.534
NOT WE WOULD GENERALLY HAVE A
02:39:37.601 --> 02:39:39.202
VERY DIFFICULT TIME FINDING
02:39:39.269 --> 02:39:40.604
PEOPLE WHO WOULD.
02:39:40.671 --> 02:39:42.005
BE WILLING TO WORK AND RUN A
02:39:42.072 --> 02:39:44.207
PROJECT LIKE THIS FOR THE AMOUNT
02:39:44.274 --> 02:39:45.208
OF THERE BEING COMPENSATED.
02:39:45.275 --> 02:39:46.610
BECAUSE AS OPPOSED TO THE
02:39:46.677 --> 02:39:48.111
PRIVATE SECTOR WHEN YOU GET
02:39:48.178 --> 02:39:50.314
BELOW THAT LEVEL --
02:39:50.380 --> 02:39:53.016
I DON'T THINK THE CHALLENGES AND
02:39:53.083 --> 02:39:54.451
I DON'T I I MUST TELL YOU I'M
02:39:54.518 --> 02:39:56.219
NOT QUITE SURE.
02:39:56.286 --> 02:39:58.488
WHAT THE CHALLENGE IS WHY IF
02:39:58.555 --> 02:39:59.823
YOU'VE GOT TWO HUNDRED AND?
02:39:59.890 --> 02:40:01.325
FOURTEEN PHYSICIANS WHY YOU
02:40:01.391 --> 02:40:06.196
DON'T HAVE ALL TWO HUNDRED AND
02:40:06.263 --> 02:40:07.364
FOURTEEN FILLED AND YOU PROBABLY
02:40:07.431 --> 02:40:08.398
KNOW MORE ABOUT THAT THAN I DO I
02:40:08.465 --> 02:40:09.466
DON'T BUT THAT SEEMS TO BE
02:40:09.533 --> 02:40:11.601
ENDEMIC IN THE STATE.
02:40:11.668 --> 02:40:13.537
WELL I JUST.
02:40:13.603 --> 02:40:14.705
YOU I KNOW I KNOW THAT YOU
02:40:14.771 --> 02:40:15.305
BROUGHT BRIAN KELLY OVER HIS
02:40:15.372 --> 02:40:17.307
PAYS THREE HUNDRED EIGHTY SEVEN
02:40:17.374 --> 02:40:18.241
THOUSAND DOLLARS A YEAR.
02:40:18.308 --> 02:40:19.309
SO I'M WONDERING HOW WHY WOULD
02:40:19.376 --> 02:40:20.677
BE A PROBLEM TO PAY CONSTRUCTION
02:40:20.744 --> 02:40:22.079
MANAGERS WHO ARE BOOTS ON THE
02:40:22.145 --> 02:40:26.316
GROUND IN THE FIELD DOING THE
02:40:26.383 --> 02:40:28.552
WORK BASICALLY I THINK --
02:40:28.618 --> 02:40:30.654
THAT IT BY AND LARGE THEY ARE.
02:40:30.721 --> 02:40:33.357
UNLESS THEY ARE APPOINTEES OF BY
02:40:33.423 --> 02:40:35.525
THE GOVERNOR I THINK THEY AND
02:40:35.592 --> 02:40:37.260
THEIR COMPENSATION IS SUBJECT TO
02:40:37.327 --> 02:40:38.962
THE PAYMENT SCALE OF STATE IN
02:40:39.029 --> 02:40:40.197
PLACE STATE OF CALIFORNIA
02:40:40.263 --> 02:40:41.465
EMPLOYERS.
02:40:41.531 --> 02:40:42.766
I THINK THAT MIGHT BE A THAT IF
02:40:42.833 --> 02:40:44.968
IT IS AND HAS BEEN A HELPER.
02:40:45.035 --> 02:40:48.472
TO OF OVERSIGHT OF THE PROJECT
02:40:48.538 --> 02:40:51.041
TO SEVENTY SEVEN BILLION PROJECT
02:40:51.108 --> 02:40:52.809
ADDRESSED AND IT MIGHT HAVE TO
02:40:52.876 --> 02:40:54.244
BE ADDRESSED THROUGH.
02:40:54.311 --> 02:40:56.179
LEGISLATION THAT TO WORK TOWARDS
02:40:56.246 --> 02:40:58.315
SOMEBODY THAT CAN ACTUALLY BE
02:40:58.382 --> 02:40:59.983
THE WATCHDOG FOR THE PEOPLE.
02:41:00.050 --> 02:41:01.718
LIKE HEY I REALLY LIKE THE IDEA
02:41:01.785 --> 02:41:03.653
THE OTHER THING IS IF YOU COULD
02:41:03.720 --> 02:41:04.521
DO ONE OTHER THING AT THE SAME
02:41:04.588 --> 02:41:05.822
TIME.
02:41:05.889 --> 02:41:08.492
WOULD BE DEFINED USE --
02:41:08.558 --> 02:41:09.559
TO HEALTH CLASS --
02:41:09.626 --> 02:41:10.594
BREAK THROUGH THE CAP THAT WE'VE
02:41:10.660 --> 02:41:11.862
GOT THAT WE CAN PAY FOR
02:41:11.928 --> 02:41:13.597
ADMINISTRATION WELL IN AGAIN
02:41:13.663 --> 02:41:15.465
I'VE BEGGED TO BE A PARTNER FOR
02:41:15.532 --> 02:41:16.700
THE AUTHORITY FOR YEARS.
02:41:16.767 --> 02:41:18.001
BUT I ONLY GET TRICKLES OF
02:41:18.068 --> 02:41:19.870
INFORMATION.
02:41:19.936 --> 02:41:20.470
THIS IS THE FIRST TIME YOU AND
02:41:20.537 --> 02:41:22.005
I'VE EVER MET ME AND I'VE BEEN
02:41:22.072 --> 02:41:22.839
THE CHAIR FOR THREE AND A HALF
02:41:22.906 --> 02:41:23.306
YEARS.
02:41:23.373 --> 02:41:24.775
AND SO I THINK THAT WHAT WE NEED
02:41:24.841 --> 02:41:26.843
TO DO IS BETTER PARTNER WITH THE
02:41:26.910 --> 02:41:29.513
LEGISLATURE NOT CREATE THIS WALL
02:41:29.579 --> 02:41:31.114
OF SECRECY.
02:41:31.181 --> 02:41:33.316
OF THE GOES ON BECAUSE I ONLY
02:41:33.383 --> 02:41:34.985
GET INFORMATION.
02:41:35.052 --> 02:41:37.387
INJUST DRIBBLES AND I THINK
02:41:37.454 --> 02:41:38.722
THAT HAS TO STOP ALSO I THINK
02:41:38.789 --> 02:41:40.924
THE INSPECTOR GENERAL THAT WE
02:41:40.991 --> 02:41:45.695
DID IN IN THE IN THE CALTRANS --
02:41:45.762 --> 02:41:49.533
COME HOME ACTUALLY HAS SOME OF
02:41:49.599 --> 02:41:51.101
YOU ANSWER TO IS THERE'S NO
02:41:51.168 --> 02:41:51.701
ACCOUNTABILITY AND THERE'S NO
02:41:51.768 --> 02:41:53.070
PUNITIVE.
02:41:53.136 --> 02:41:55.539
OF ACTIONS AGO ONE NOBODY GETS
02:41:55.605 --> 02:41:58.175
FIRED AS MISTER MURATSUCHI THE
02:41:58.241 --> 02:41:59.843
CHAIRED GERMAN J. LIKE HIS.
02:41:59.910 --> 02:42:03.146
IS A AT DENOTED TODAY --
02:42:03.213 --> 02:42:04.381
YOU YOU.
02:42:04.448 --> 02:42:06.183
YOU'RE YOU'RE SORT IS GONE ON
02:42:06.249 --> 02:42:06.716
WITH.
02:42:06.783 --> 02:42:07.250
WHATEVER THEY WANTED TO DO
02:42:07.317 --> 02:42:08.385
WITHOUT ANY OVERSIGHT FROM THIS
02:42:08.452 --> 02:42:10.353
BODY SO AND AND WE WE APPRECIATE
02:42:10.420 --> 02:42:12.089
THE OVERSIGHT YEAR YOUR IDEA
02:42:12.155 --> 02:42:12.889
FUNDERS.
02:42:12.956 --> 02:42:14.891
YEAH I MEAN IF YOU CAN MAKE THIS
02:42:14.958 --> 02:42:16.993
IS THE I. G. THING WORK --
02:42:17.060 --> 02:42:19.262
YOU'RE GONNA HAVE A LOT OF HAPPY
02:42:19.329 --> 02:42:21.465
PEOPLE AT THE AUTHORITY.
02:42:21.531 --> 02:42:27.137
MISTER CHAIRMAN TO GIVE MY TIME
02:42:27.204 --> 02:42:29.973
TO THE NEXT MEMBERS THANK YOU.
02:42:30.040 --> 02:42:35.946
THANK YOU THANK YOU [inaudible]
02:42:36.012 --> 02:42:37.414
THIS PATTERSON.
02:42:37.481 --> 02:42:39.983
THANK YOU --
02:42:40.050 --> 02:42:40.383
THREE THREE QUICK.
02:42:40.450 --> 02:42:42.719
AREAS --
02:42:42.786 --> 02:42:43.386
YOU'RE GONNA HAVE TO EXPLAIN TO
02:42:43.453 --> 02:42:44.020
ME THE FUTURE POTENTIAL CHANGE
02:42:44.087 --> 02:42:44.955
ORDERS OF ONE POINT SIX BILLION
02:42:45.021 --> 02:42:46.156
DOLLARS FOUR HUNDRED NINETEEN
02:42:46.223 --> 02:42:46.756
MILE SEGMENT.
02:42:46.823 --> 02:42:49.426
THAT APPEARS TO ME TO BE A A
02:42:49.493 --> 02:42:51.561
HUGE -- BUMP
02:42:51.628 --> 02:42:52.762
AND THAT'S FUTURE POTENTIAL IN
02:42:52.829 --> 02:42:53.296
OTHER WORDS THAT'S JUST AN
02:42:53.363 --> 02:42:54.831
ESTIMATE.
02:42:54.898 --> 02:42:57.067
WHY ISN'T GOING TO GET BIGGER
02:42:57.134 --> 02:43:06.409
AND WHY IS IT SO BIG NOW?
02:43:06.476 --> 02:43:09.279
I THINK THAT --
02:43:09.346 --> 02:43:10.780
IF YOU COULD JUST GIVE ME ONE
02:43:10.847 --> 02:43:12.983
MOMENT I'M LOOKING FOR ONE OF
02:43:13.049 --> 02:43:21.758
THE DOCUMENT.
02:43:21.825 --> 02:43:22.459
I THINK CITY --
02:43:22.526 --> 02:43:25.629
WITH REGARDS TO THE THE THE COST
02:43:25.695 --> 02:43:28.298
THAT THE AUDITOR IS USING --
02:43:28.365 --> 02:43:30.367
MISTER PATTERSON WE CONCLUDE
02:43:30.433 --> 02:43:31.535
WEEK WE COME UP WITH THE SAME
02:43:31.601 --> 02:43:33.370
COST IT'S HOW WE ARE CLASSIFYING
02:43:33.436 --> 02:43:34.671
THE COST THAT.
02:43:34.738 --> 02:43:36.673
THAT AND AND I WOULD ONLY SHOULD
02:43:36.740 --> 02:43:38.475
SAY THIS THE AUDITOR HASN'T HAD
02:43:38.542 --> 02:43:40.443
AN OPPORTUNITY TO EVEN LOOK AT
02:43:40.510 --> 02:43:43.246
ANYTHING THAT I'M JUST SAYING SO
02:43:43.313 --> 02:43:43.613
IT'S NOT THAT --
02:43:43.680 --> 02:43:44.347
AND THAT.
02:43:44.414 --> 02:43:46.816
I'M NOT SUGGESTING THAT THE
02:43:46.883 --> 02:43:48.251
AUDITOR WOULD AGREE OR DISAGREE
02:43:48.318 --> 02:43:50.554
BUT I THINK THAT WHAT WE LOOK AT
02:43:50.620 --> 02:43:53.323
AND WHAT WE'RE LOOKING AT IS
02:43:53.390 --> 02:43:55.091
THAT.
02:43:55.158 --> 02:43:56.393
THIS START NUMBER THAT THE
02:43:56.459 --> 02:43:59.095
AUDITOR USED DID NOT INCLUDE
02:43:59.162 --> 02:43:59.563
SOME.
02:43:59.629 --> 02:44:01.631
THINGS IN ADDITION TO WHAT
02:44:01.698 --> 02:44:04.367
ACTUALLY IS THE THE CP CONTRACTS
02:44:04.434 --> 02:44:08.405
WE'VE GOT CP ONE TWO THREE AND
02:44:08.471 --> 02:44:09.539
FOUR THAT'S THE NUMBER THAT WAS
02:44:09.606 --> 02:44:11.474
USED WELL IN ADDITION TO THOSE
02:44:11.541 --> 02:44:12.676
FROM THE VERY OUTSET OF THE
02:44:12.742 --> 02:44:14.044
PROJECT.
02:44:14.110 --> 02:44:16.246
WE HAD OTHER COST WHICH INCLUDED
02:44:16.313 --> 02:44:18.181
PROVISIONAL SOUNDS AND
02:44:18.248 --> 02:44:19.316
CONTINGENCY.
02:44:19.382 --> 02:44:22.452
WE ALSO HAVE THE STATE WE CAUGHT
02:44:22.519 --> 02:44:24.187
AS AS YOU MAY KNOW BECAUSE OF
02:44:24.254 --> 02:44:27.424
YOU AND I BOTH BEING FROM FRESNO
02:44:27.490 --> 02:44:29.993
NINE WAS RELOCATED --
02:44:30.060 --> 02:44:31.595
BETWEEN OUT BY GOLDEN STATE
02:44:31.661 --> 02:44:33.530
COMING COMING SOUTH THAT
02:44:33.597 --> 02:44:34.831
RELOCATION WE DIDN'T DO THE WORK
02:44:34.898 --> 02:44:36.766
BUT IT'S PART OF OUR PROJECT WE
02:44:36.833 --> 02:44:38.201
CONTRACTED WITH CALTRANS.
02:44:38.268 --> 02:44:41.538
THAT'S A NUMBER THAT IS IT AS WE
02:44:41.605 --> 02:44:43.273
WOULD LOOK AT IT WE WOULD IN
02:44:43.340 --> 02:44:45.275
HAVE INCORPORATED THAT THE NORM
02:44:45.342 --> 02:44:47.344
NORM NORTHERN EXTENSION THE
02:44:47.410 --> 02:44:49.012
THREE MILES THAT WE TALKED ABOUT --
02:44:49.079 --> 02:44:53.483
IN IN THE IN MY S. STATEMENT --
02:44:53.550 --> 02:44:55.852
WE INCORPORATE THAT --
02:44:55.919 --> 02:44:57.320
AND WE HAVEN'T WE HAVEN'T HEARD
02:44:57.387 --> 02:44:59.055
AND WE HAVE A WE HAVE A CHANGE
02:44:59.122 --> 02:45:00.657
ORDER THERE.
02:45:00.724 --> 02:45:02.359
BUT WHAT WHEN YOU WHEN YOU TAKE
02:45:02.425 --> 02:45:03.526
THAT INTO ACCOUNT AT THE START
02:45:03.593 --> 02:45:06.329
POINT.
02:45:06.396 --> 02:45:08.265
WHAT WE HAVE IS?
02:45:08.331 --> 02:45:12.502
THE AS WE SEE IT THE FUTURE WORK --
02:45:12.569 --> 02:45:14.437
THAT THE I THINK THE AUDITOR IS
02:45:14.504 --> 02:45:16.106
TALKING ABOUT WE'RE SEEING THAT
02:45:16.172 --> 02:45:18.308
IS IT AS ABOUT NOT A ONE POINT
02:45:18.375 --> 02:45:19.509
SIX BILLION DOLLARS REACHING
02:45:19.576 --> 02:45:21.211
THAT IS ABOUT SEVEN HUNDRED AND
02:45:21.278 --> 02:45:22.512
FORTY MILLION DOLLARS.
02:45:22.579 --> 02:45:24.281
BECAUSE THESE OTHER COSTS HAVE
02:45:24.347 --> 02:45:26.549
TO BE CAPTURED FROM THE BACK
02:45:26.616 --> 02:45:28.151
BEFORE THAT BECAUSE THEY WEREN'T.
02:45:28.218 --> 02:45:29.886
OVER RUNS THEY WERE COSTS THAT
02:45:29.953 --> 02:45:31.855
AREN'T CAPTURED AT THE OUTSET
02:45:31.921 --> 02:45:33.990
AND WE DID HAVE THOSE CAPTURED
02:45:34.057 --> 02:45:37.494
IN OURS.
02:45:37.560 --> 02:45:39.129
OKAY BUT AGAIN I HER TESTIMONY
02:45:39.195 --> 02:45:41.064
THAT YOU CAN COOPER.
02:45:41.131 --> 02:45:43.166
WITH THE AUDIT BUT I GUESS
02:45:43.233 --> 02:45:43.967
TIGHTLY CHIRLA CONCURRENT WITH
02:45:44.034 --> 02:45:45.602
THE ON I CONCUR WITH THE TOTAL
02:45:45.669 --> 02:45:47.237
COST IS A MATTER OF HOW YOU
02:45:47.304 --> 02:45:48.104
CLASSIFY THE CAR OKAY LET'S
02:45:48.171 --> 02:45:50.373
LET'S MOVE ON TO THE DEADLINE
02:45:50.440 --> 02:45:53.843
ISSUE AND THE THE CLAWBACK ISSUE --
02:45:53.910 --> 02:45:55.612
I REALLY THINK THIS IS THE THIS
02:45:55.679 --> 02:45:57.347
IS THE NEXT SHOE TO DROP YOU YOU
02:45:57.414 --> 02:45:59.883
ARE FACING AN AUDIT.
02:45:59.949 --> 02:46:00.784
A BY THE FEDERAL GOVERNMENT --
02:46:00.850 --> 02:46:03.219
THAT.
02:46:03.286 --> 02:46:04.954
FEDERAL ON IT --
02:46:05.021 --> 02:46:07.891
BEGAN IN APRIL --
02:46:07.957 --> 02:46:09.893
WE THINK THAT IT IS PROCEEDING
02:46:09.959 --> 02:46:12.162
AND WE MAY HAVE SOME RESULTS IN
02:46:12.228 --> 02:46:14.497
SEVERAL MONTHS THERE ARE.
02:46:14.564 --> 02:46:17.400
HEY EXPLICIT IN THE AUDIT.
02:46:17.467 --> 02:46:22.105
REAL CONCERNS ABOUT NUMBER --
02:46:22.172 --> 02:46:23.139
ONE THE EARLY USE OF THE FEDERAL
02:46:23.206 --> 02:46:23.840
MONEY.
02:46:23.907 --> 02:46:25.275
WITH ALL DUE RESPECT SIR IT
02:46:25.342 --> 02:46:27.110
SOUNDED LIKE YOUR TESTIMONY HERE
02:46:27.177 --> 02:46:28.478
WAS PREPARED BY A LAWYER
02:46:28.545 --> 02:46:29.779
ANTICIPATING THE FEDS GOING OVER
02:46:29.846 --> 02:46:31.848
YOUR SHOULDER.
02:46:31.915 --> 02:46:34.417
THANK YOU BUT IT WAS.
02:46:34.484 --> 02:46:36.586
WELL THEN YOU CREATED MAYBE HAVE
02:46:36.653 --> 02:46:37.787
A LAWYER IS NOT.
02:46:37.854 --> 02:46:39.222
WHAT I HEARD WHAT I HEARD AND
02:46:39.289 --> 02:46:40.190
THAT?
02:46:40.256 --> 02:46:42.092
WAS A DEFENSE.
02:46:42.158 --> 02:46:45.061
OF WHAT OUR AUDITOR HAS
02:46:45.128 --> 02:46:46.096
CONCLUDED IS NOT DEFENSIBLE.
02:46:46.162 --> 02:46:47.964
SO THERE'S GOING TO BE SOME SOME
02:46:48.031 --> 02:46:49.799
ISSUES WITH THIS AND THAT BUT
02:46:49.866 --> 02:46:50.967
THAT'S JUST PART OF IT.
02:46:51.034 --> 02:46:52.969
BUT THE BIGGER PROBLEM HERE.
02:46:53.036 --> 02:46:54.904
WITH THE WITH THE CLUB ACT ISN'T
02:46:54.971 --> 02:46:56.373
MISSING THIS DEADLINE --
02:46:56.439 --> 02:47:01.111
AND SO THE THE THE THE AND WHAT
02:47:01.177 --> 02:47:02.512
THE AUDITOR AT THE END OF THIS
02:47:02.579 --> 02:47:02.812
[inaudible]
02:47:02.879 --> 02:47:04.714
RECOMMENDED WITHIN.
02:47:04.781 --> 02:47:05.949
DAUGHTER USED THE TERM
02:47:06.015 --> 02:47:07.050
CONTINGENCY PLAN.
02:47:07.117 --> 02:47:09.285
I'M USING THE TERM [inaudible]
02:47:09.352 --> 02:47:11.721
PLAN B..
02:47:11.788 --> 02:47:15.859
MR RICHEST PLAN A IS FAILING.
02:47:15.925 --> 02:47:18.461
YOU CAN'T COMPLETE THE THREE
02:47:18.528 --> 02:47:19.863
DIFFERENT SEGMENTS.
02:47:19.929 --> 02:47:21.231
AND WE'RE LEFT IN CENTRAL
02:47:21.297 --> 02:47:22.766
CALIFORNIA WITH THE RAIL ROAD
02:47:22.832 --> 02:47:24.901
THAT GOES FROM OUTSIDE MADERA
02:47:24.968 --> 02:47:27.303
OUTSIDE BAKERSFIELD.
02:47:27.370 --> 02:47:30.473
HI THE AND IF YOU IF YOU CAN'T.
02:47:30.540 --> 02:47:33.610
BRING IT IN ON TIME [inaudible]
02:47:33.676 --> 02:47:36.579
THAT CLAWBACK.
02:47:36.646 --> 02:47:39.082
COULD BE THE TWO THREE BILLION
02:47:39.149 --> 02:47:41.618
DOLLARS THAT YOU STATE WE SO
02:47:41.684 --> 02:47:43.153
FORTUITOUS LEAST.
02:47:43.219 --> 02:47:45.288
GOT PAID TO US AND SO I'M ASKING
02:47:45.355 --> 02:47:47.857
YOU ABOUT.
02:47:47.924 --> 02:47:50.460
YOUR CONCERN OVER FEDERAL ON
02:47:50.527 --> 02:47:52.662
HAVE YOU BEEN INTERVIEWED BY THE
02:47:52.729 --> 02:47:53.630
FEDS.
02:47:53.696 --> 02:47:56.399
OR OTHERS IN YOUR AUTHORITY
02:47:56.466 --> 02:47:58.034
LEADERSHIP --
02:47:58.101 --> 02:48:02.305
AND IF I ASK THE QUESTION ABOUT
02:48:02.372 --> 02:48:05.208
CONFIDENCE WITH THE AUDITOR'S
02:48:05.275 --> 02:48:07.243
I'M ASKING YOU CONFIDENCE.
02:48:07.310 --> 02:48:08.978
ARE WE GOING TO END UP HAVING TO
02:48:09.045 --> 02:48:10.980
GIVE BACK THREE BILLION DOLLARS
02:48:11.047 --> 02:48:12.715
TO THE FEDS BECAUSE THAT'S THE
02:48:12.782 --> 02:48:14.751
POTENTIAL HERE.
02:48:14.818 --> 02:48:16.986
WELL YOU KNOW IT'S NOT IT'S IT'S
02:48:17.053 --> 02:48:18.021
NOT IT'S DECEMBER BUT IT'S SHE
02:48:18.087 --> 02:48:19.322
THERE'S SOME SOME SIMILARITIES
02:48:19.389 --> 02:48:20.390
WE HAD.
02:48:20.457 --> 02:48:21.891
WE HAD THE SAME ISSUE OR A A
02:48:21.958 --> 02:48:23.693
KIND SIMILAR ISSUE AND SPENDING
02:48:23.760 --> 02:48:25.862
THE MONEY HAD WE NOT SPENT IT BY
02:48:25.929 --> 02:48:27.864
SEPTEMBER SEVENTEEN WHATEVER WE
02:48:27.931 --> 02:48:29.032
HAD SPENT.
02:48:29.098 --> 02:48:30.733
WE WOULD NOT HAVE HAD MADE IT
02:48:30.800 --> 02:48:32.535
WOULD NO LONGER BEEN MADE
02:48:32.602 --> 02:48:35.238
AVAILABLE TO US.
02:48:35.305 --> 02:48:38.341
WE THOUGHT BUT SERRANO I GUESS
02:48:38.408 --> 02:48:39.108
I'M THAT.
02:48:39.175 --> 02:48:40.410
OR USE IT AND YOU KNEW GOING IN
02:48:40.477 --> 02:48:41.044
THAT YOU HAVE TO DO IT AND YOU
02:48:41.110 --> 02:48:44.747
MADE A CALCULATED DECISION. TO
02:48:44.814 --> 02:48:46.316
DO WHAT YOU DID IT BACK WITHOUT
02:48:46.382 --> 02:48:47.217
REPORTING IT TO US WITH WE WE
02:48:47.283 --> 02:48:48.117
HAD TO FIND THIS OUT MISTER
02:48:48.184 --> 02:48:49.452
KELLY HAD TO COME IN AND SAY WE
02:48:49.519 --> 02:48:51.020
MADE THIS TERRIBLE MISTAKE WE'RE
02:48:51.087 --> 02:48:53.156
NOT GONNA DO IT AGAIN.
02:48:53.223 --> 02:48:54.591
SIR IT'S NOT ABOUT YESTERDAY
02:48:54.657 --> 02:48:56.793
THIS IS ABOUT TOMORROW AND THIS
02:48:56.860 --> 02:48:57.360
AUDIT.
02:48:57.427 --> 02:48:59.162
IS COMING AND YOU'RE GONNA HAVE
02:48:59.229 --> 02:49:01.931
TO DEAL WITH IT I'M ASKING WHAT
02:49:01.998 --> 02:49:04.000
IS YOUR PLAN B. AND IT'S
02:49:04.067 --> 02:49:06.903
REASONABLE TO ASK --
02:49:06.970 --> 02:49:07.470
I THINK GIVEN WHERE WE ARE.
02:49:07.537 --> 02:49:09.572
IT HOW ARE YOU WHAT CONFIDENCE
02:49:09.639 --> 02:49:11.007
DO YOU HAVE IN MEETING.
02:49:11.074 --> 02:49:13.142
THE TIMELINE AND IN DEFENDING
02:49:13.209 --> 02:49:15.044
YOUR USE OF THE MONEY.
02:49:15.111 --> 02:49:16.179
I THINK THE ALL THOSE ARE FAIR
02:49:16.246 --> 02:49:18.014
QUESTIONS I WAS JUST I WAS JUST
02:49:18.081 --> 02:49:19.482
GIVING.
02:49:19.549 --> 02:49:21.017
A SIMILARITY.
02:49:21.084 --> 02:49:22.819
IN WHAT WE HAD TO DO TO MEET THE
02:49:22.886 --> 02:49:24.554
SEVENTEEN DEADLINE WITH REGARDS
02:49:24.621 --> 02:49:26.289
TO GOING FORWARD.
02:49:26.356 --> 02:49:27.724
FIRST OF ALL I I THINK EVERYBODY
02:49:27.790 --> 02:49:29.692
WOULD UNDERSTAND THE FOLLOWING.
02:49:29.759 --> 02:49:32.295
WE STARTED CONSTRUCTION AND
02:49:32.362 --> 02:49:33.496
THIRTEEN BUT WE WHAT WE LOST
02:49:33.563 --> 02:49:35.031
OVER A YEAR.
02:49:35.098 --> 02:49:37.667
BECAUSE OF OF LITIGATION.
02:49:37.734 --> 02:49:40.169
WE ALSO HAVE HAD DELAYS BECAUSE
02:49:40.236 --> 02:49:42.639
OF RIGHT OF WAY.
02:49:42.705 --> 02:49:43.540
AND WE'RE TAKING FULL
02:49:43.606 --> 02:49:46.042
RESPONSIBILITY FOR THOSE THINGS
02:49:46.109 --> 02:49:47.844
SO WHILE WE MAY HAVE BEEN UNDER
02:49:47.911 --> 02:49:49.112
CONSTRUCTION IN.
02:49:49.178 --> 02:49:51.481
THEORETICALLY HAVING EXECUTED
02:49:51.548 --> 02:49:53.082
CONTRACTS.
02:49:53.149 --> 02:49:55.084
THE CONSTRUCTION IS RAMPING HAS
02:49:55.151 --> 02:49:56.553
BEEN RAMPING UP.
02:49:56.619 --> 02:49:58.454
NOT SINCE THIRTEEN BUT REALLY IT
02:49:58.521 --> 02:49:59.989
IS SINCE WE WERE ABLE TO START
02:50:00.056 --> 02:50:03.092
BUILDING SO AS WE AS WE HAVE NOW
02:50:03.159 --> 02:50:06.663
WE'VE GOT 77% OF THE RIGHT AWAY.
02:50:06.729 --> 02:50:07.196
FOURTEEN HUNDRED AND SOME
02:50:07.263 --> 02:50:09.599
PARTIALS OUT OF THE EIGHT NEED
02:50:09.666 --> 02:50:11.634
FOR THAT HUNDRED NINETEEN MILES.
02:50:11.701 --> 02:50:13.236
WHAT WE'VE DONE AS YOU POINTED
02:50:13.303 --> 02:50:14.871
OUT EARLIER TO MISTER PATTERSON
02:50:14.938 --> 02:50:16.739
WITH I THINK YOU DID WITH SOME
02:50:16.806 --> 02:50:17.707
CONSTRUCTION HERE AND SOME
02:50:17.774 --> 02:50:19.275
CONSTRUCTION THEIR AND NOTHING
02:50:19.342 --> 02:50:20.176
IN BETWEEN?
02:50:20.243 --> 02:50:22.312
THAT THAT WAS BY DESIGN BECAUSE
02:50:22.378 --> 02:50:23.580
THOSE PARCELS THAT WE'RE
02:50:23.646 --> 02:50:25.648
BUILDING ON WERE CALLED PRIORITY
02:50:25.715 --> 02:50:27.317
PARCELS BECAUSE THOSE ARE IN THE
02:50:27.383 --> 02:50:29.285
AREAS WHERE YOU HAVE THE MOST
02:50:29.352 --> 02:50:30.753
COMPLEX CONSTRUCTION.
02:50:30.820 --> 02:50:32.956
TAKES THE LONGEST PERIOD OF TIME
02:50:33.022 --> 02:50:35.124
DESTRUCT INSTRUCTION IT IS JUST
02:50:35.191 --> 02:50:35.892
ON THE GROUND.
02:50:35.959 --> 02:50:36.693
THAT IS --
02:50:36.759 --> 02:50:38.661
EARTH WORK FOR IN A LOT OF WASTE
02:50:38.728 --> 02:50:40.997
AND PUTTING RAIL ON TOP OF THAT
02:50:41.064 --> 02:50:43.199
IS REGION IS NOT REALLY COMPLEX
02:50:43.266 --> 02:50:43.466
DISCUSS.
02:50:43.533 --> 02:50:45.234
CONSTRUCTION BUT IF WE HAD ALL
02:50:45.301 --> 02:50:47.770
OF THAT BUT WE DIDN'T HAVE THESE
02:50:47.837 --> 02:50:49.739
THESE LARGE STRUCTURES WE WOULD
02:50:49.806 --> 02:50:51.174
HAVE THOSE INSTRUCTIONS WOULD BE
02:50:51.240 --> 02:50:53.142
SITTING THERE SO WE MADE A
02:50:53.209 --> 02:50:54.477
CONSCIOUS DECISION --
02:50:54.544 --> 02:50:55.778
THAT WE NEEDED TO GET THE
02:50:55.845 --> 02:51:00.350
CRITICAL PARCELS DONE FIRST.
02:51:00.416 --> 02:51:01.818
WHEN WITH SO I IT HAPPENS I HAVE
02:51:01.884 --> 02:51:02.518
A BELIEF?
02:51:02.585 --> 02:51:04.120
AND I THINK A REALISTIC ONE THAT
02:51:04.187 --> 02:51:04.954
YOU WILL SEE AND IT'S ALREADY
02:51:05.021 --> 02:51:06.689
BEEN OCCURRING THAT OUR RATE OF
02:51:06.756 --> 02:51:09.892
CONSTRUCTION SPEND IS INCREASING.
02:51:09.959 --> 02:51:12.328
WHAT WE WILL DO BY NEXT MARCH IS
02:51:12.395 --> 02:51:15.431
WE WILL HAVE YOUR PLAN BE IT
02:51:15.498 --> 02:51:17.266
WE'RE WORKING ON IT RIGHT NOW?
02:51:17.333 --> 02:51:19.936
AND WHAT PLANNED BE WILL MEET
02:51:20.003 --> 02:51:21.337
ONE OF THEM ONE ALTERNATIVE WITH
02:51:21.404 --> 02:51:23.072
TIME THE IS LIKELY GOING TO BE
02:51:23.139 --> 02:51:24.173
ISSUE WOULD GAS.
02:51:24.240 --> 02:51:25.808
GOING TO OUR FEDERAL --
02:51:25.875 --> 02:51:27.343
PARTNER THE FEDERAL --
02:51:27.410 --> 02:51:29.879
RAIL ADMINISTRATION AND TALK
02:51:29.946 --> 02:51:30.980
ABOUT AN EXTENSION.
02:51:31.047 --> 02:51:33.082
I DON'T THINK TODAY AS I'M
02:51:33.149 --> 02:51:34.183
SITTING HERE THAT I THINK IT
02:51:34.250 --> 02:51:35.485
EXTENSION IS GOING TO BE
02:51:35.551 --> 02:51:36.619
NECESSARY.
02:51:36.686 --> 02:51:37.954
BUT I WANT TO PLAN FOR OR THEY
02:51:38.021 --> 02:51:41.658
THOUGHT OR WHAT IF IT BECOMES
02:51:41.724 --> 02:51:43.359
NECESSARY WE'RE NOT GOING TO SIT
02:51:43.426 --> 02:51:45.762
AND WAIT UNTIL TWENTY TWENTY ONE
02:51:45.828 --> 02:51:46.362
TO FIGURE OUT HOW TO DEAL WITH
02:51:46.429 --> 02:51:51.701
IT -- SO
02:51:51.768 --> 02:51:53.236
TUNNELING THROUGH THE SAN
02:51:53.302 --> 02:51:54.470
GABRIEL MOUNTAINS AND THROUGH
02:51:54.537 --> 02:51:56.606
PACHECO PASS IS NOT COMPLICATED
02:51:56.673 --> 02:51:58.474
EXPENSIVE AND COULD BLOW THIS
02:51:58.541 --> 02:52:00.143
WHOLE THING UP I MEAN HONESTLY.
02:52:00.209 --> 02:52:01.544
YOU'RE SAYING YOU'RE BUILDING ON
02:52:01.611 --> 02:52:02.945
TWO ENDS IT THERE'S NO
02:52:03.012 --> 02:52:04.847
CONNECTIVITY THAT I CAN SEE THAT
02:52:04.914 --> 02:52:06.282
YOU CAN POSSIBLY.
02:52:06.349 --> 02:52:08.184
PUT UP.
02:52:08.251 --> 02:52:10.286
MONEY INTO AT THAT AND HAVE IT.
02:52:10.353 --> 02:52:12.689
HAVE IT BE DONE AND SO I I STILL
02:52:12.755 --> 02:52:15.158
COME BACK WHEN I SAY PLAN B..
02:52:15.224 --> 02:52:16.926
WHAT IS PLAN B. WHEN YOU CAN'T
02:52:16.993 --> 02:52:18.294
COMPLETE?
02:52:18.361 --> 02:52:20.096
THE SEGMENTS WHAT WHAT PLAN B.
02:52:20.163 --> 02:52:23.499
IS IS HOW DO WE ENSURE.
02:52:23.566 --> 02:52:24.734
THAT WE HAVE SPENT THE MONEY AND
02:52:24.801 --> 02:52:26.335
COMPLETED AND WE SPENT A SPENT
02:52:26.402 --> 02:52:28.337
THE MONEY AND COMPLETED THE WORK
02:52:28.404 --> 02:52:31.240
FOR THE HUNDRED NINETEEN MILES.
02:52:31.307 --> 02:52:32.842
BY.
02:52:32.909 --> 02:52:33.743
TWENTY TWENTY TWO IT'S NOT
02:52:33.810 --> 02:52:34.677
DRILLING THROUGH ANY ANY THE
02:52:34.744 --> 02:52:35.878
CHECK A PASTOR ANY OF THOSE
02:52:35.945 --> 02:52:37.280
THINGS THAT'S NOT UNDER THAT
02:52:37.346 --> 02:52:39.248
THAT'S NOT UNDER CONSTRUCTION.
02:52:39.315 --> 02:52:40.550
WITH THIS MONEY THAT WE'VE GOT
02:52:40.616 --> 02:52:42.985
RIGHT NOW WE'VE GOT TO BUILD A
02:52:43.052 --> 02:52:45.188
HUNDRED AND NINETEEN MILES WITH
02:52:45.254 --> 02:52:46.989
THE FUNDS OKAY DO YOU CONCUR
02:52:47.056 --> 02:52:47.557
THAN THAT YOU DON'T HAVE THE
02:52:47.623 --> 02:52:48.758
MONEY TO COMPLETE.
02:52:48.825 --> 02:52:50.326
WITH THE ENTIRE PROJECT CAN YOU
02:52:50.393 --> 02:52:51.894
DON'T HAVE THE K. ONE WE NEVER
02:52:51.961 --> 02:52:53.362
HAD THE ENTIRE MONEY TO COMPLETE
02:52:53.429 --> 02:52:56.899
FROM DAY.
02:52:56.966 --> 02:52:58.668
ONE IT'S NEVER CHANGED.
02:52:58.735 --> 02:53:00.336
TALK ABOUT AND AND ASK ABOUT
02:53:00.403 --> 02:53:02.071
THIS --
02:53:02.138 --> 02:53:04.574
SPEED TIME IN COMPETITIVE.
02:53:04.640 --> 02:53:06.309
FROM THAT THE HUNDRED THOUSAND
02:53:06.375 --> 02:53:06.909
FOOT LEVEL LOOK AT THE VALUE
02:53:06.976 --> 02:53:07.977
PROPOSITION HERE.
02:53:08.044 --> 02:53:09.445
BACK IN TWO THOUSAND AND NINE
02:53:09.512 --> 02:53:10.613
WAS WITHIN THE SPEED YOU BETWEEN
02:53:10.680 --> 02:53:12.915
LOS ANGELES AND SAN FRANCISCO A
02:53:12.982 --> 02:53:13.683
TWO HUNDRED AND FIFTY MILES AN
02:53:13.750 --> 02:53:14.684
HOUR.
02:53:14.751 --> 02:53:15.885
AND YOU CAN YOU MAKE THE CLAIM
02:53:15.952 --> 02:53:17.720
ON SPEED TIME AND
02:53:17.787 --> 02:53:19.122
COMPETITIVENESS IN OTHER WORDS
02:53:19.188 --> 02:53:19.956
WE'RE GOING TO HAVE AN
02:53:20.022 --> 02:53:22.225
ALTERNATIVE TO FLYING AIRPLANES
02:53:22.291 --> 02:53:24.527
FROM LA. TO TO SAN FRANCISCO
02:53:24.594 --> 02:53:24.827
YOUR SPEED.
02:53:24.894 --> 02:53:27.930
IS GOING DOWN.
02:53:27.997 --> 02:53:31.234
YOUR TIME IS GOING UP.
02:53:31.300 --> 02:53:32.502
I THINK THE COMPETITIVE
02:53:32.568 --> 02:53:33.336
ADVANTAGE IS GETTING A ROAD IT
02:53:33.402 --> 02:53:34.937
HERE.
02:53:35.004 --> 02:53:37.974
ARE YOU SIMILARLY CONCERNED
02:53:38.040 --> 02:53:39.976
ABOUT THE COMPETITIVENESS BEING
02:53:40.042 --> 02:53:42.812
A WROTE IT AND THE COMPETITIVE
02:53:42.879 --> 02:53:44.981
VALUE.
02:53:45.047 --> 02:53:46.215
OFTEN OF AN ALTERNATIVE FORM OF
02:53:46.282 --> 02:53:48.384
TRANSPORTATION THAT ISN'T AS
02:53:48.451 --> 02:53:50.586
FAST AND TAKES MORE TIME --
02:53:50.653 --> 02:53:51.821
THEN WHAT YOU PROPOSED NO I'M
02:53:51.888 --> 02:53:53.256
NOT.
02:53:53.322 --> 02:53:56.526
AND OUR SPEED.
02:53:56.592 --> 02:53:58.895
IS ALWAYS BEEN AT OR ABOVE TWO
02:53:58.961 --> 02:53:59.829
HUNDRED AT TWO HUNDRED AND
02:53:59.896 --> 02:54:00.863
TWENTY NINE ARE NOT AT OR ABOUT
02:54:00.930 --> 02:54:02.698
THE SPEED IS TWO HUNDRED AND
02:54:02.765 --> 02:54:03.900
TWENTY MILES AN HOUR IT WAS
02:54:03.966 --> 02:54:07.069
NEVER DESIGNED OR SIGN.
02:54:07.136 --> 02:54:08.738
THAT FOR THE ENTIRE DISTANCE
02:54:08.805 --> 02:54:10.106
YOU'D BE GOING TO HUNDRED TWENTY
02:54:10.173 --> 02:54:11.340
MILES AN HOUR THAT WAS NEVER
02:54:11.407 --> 02:54:12.942
INTENDED AND WOULDN'T BE
02:54:13.009 --> 02:54:13.609
INTENDED.
02:54:13.676 --> 02:54:16.445
IN IN IN URBAN AREAS EVEN IN OUR
02:54:16.512 --> 02:54:18.748
CITY AND FRESNO THAT TRAIN IS
02:54:18.815 --> 02:54:20.249
NOT GONNA COME FLYING THROUGH.
02:54:20.316 --> 02:54:22.018
FRESNO IT TWO HUNDRED TWENTY
02:54:22.084 --> 02:54:22.652
MILES AN HOUR IT'S GOING TO BE
02:54:22.718 --> 02:54:24.320
CLOSER TO SPEED IS ONE THING I
02:54:24.387 --> 02:54:27.223
ALSO ASKED ABOUT TIME IF A BLACK
02:54:27.290 --> 02:54:27.824
HEART.
02:54:27.890 --> 02:54:29.192
LOW DOWN BUT YOU'RE GOING TO DO
02:54:29.258 --> 02:54:30.226
YOUR TIME AND ROUTE IS GOING TO
02:54:30.293 --> 02:54:32.094
GO UP EVERY EVERY DESIGN
02:54:32.161 --> 02:54:33.629
DECISION WE'VE MADE FOR THE
02:54:33.696 --> 02:54:34.864
EIGHT YEARS THAT I'VE BEEN AT
02:54:34.931 --> 02:54:36.032
HIGH SPEED RAIL.
02:54:36.098 --> 02:54:38.234
IS WITH A ABSOLUTE FOCUS ON HOW
02:54:38.301 --> 02:54:39.202
MANY.
02:54:39.268 --> 02:54:41.237
HOURS MINUTES AND SECONDS WE I
02:54:41.304 --> 02:54:44.740
THINK RIGHT NOW OR TWO HOURS.
02:54:44.807 --> 02:54:45.842
THIRTY SIX MINUTES AND FORTY
02:54:45.908 --> 02:54:48.377
SECONDS WE HAVE NEVER BEEN ABOVE
02:54:48.444 --> 02:54:49.478
TO TO HOURS AND FORTY MINUTES
02:54:49.545 --> 02:54:51.047
WHICH IS WHAT'S REQUIRED BY
02:54:51.113 --> 02:54:52.181
PROPOSITION ONE DAY.
02:54:52.248 --> 02:54:53.916
AND WE'VE NEVER BEEN MUCH BELOW
02:54:53.983 --> 02:54:55.718
WHERE WE ARE NOW EVERY DECISION
02:54:55.785 --> 02:54:56.786
WE'VE NAY.
02:54:56.853 --> 02:54:58.821
AND ESPECIALLY AS WE LOOK INTO
02:54:58.888 --> 02:55:00.957
BLENDING IS CAN WE PLANNED AND
02:55:01.023 --> 02:55:03.392
SAVE THE TAXPAYERS OF THIS STATE
02:55:03.459 --> 02:55:04.327
MONEY.
02:55:04.393 --> 02:55:05.828
AND STILL MEET THE REQUIREMENTS
02:55:05.895 --> 02:55:08.064
OF PROPOSITION ONE A AND WE ARE
02:55:08.130 --> 02:55:12.602
STILL TODAY ON TRACK TO DO THAT.
02:55:12.668 --> 02:55:14.170
SO YOU.
02:55:14.237 --> 02:55:15.404
ALTHOUGH SAYING YOU CONCUR WITH
02:55:15.471 --> 02:55:16.639
THE AUDIT YOU ARE AGAIN SAYING
02:55:16.706 --> 02:55:17.773
YOU DO NOT CONCUR WITH THE
02:55:17.840 --> 02:55:19.275
SERIOUS CONCERN RAISED BY OUR
02:55:19.342 --> 02:55:20.843
AUDITOR THAT THE COMPETITIVE
02:55:20.910 --> 02:55:22.812
ADVANTAGES BEING A ROAD IT.
02:55:22.879 --> 02:55:25.281
BY VIRTUE OF THE DECISIONS --
02:55:25.348 --> 02:55:26.949
TO SPLIT BASICALLY SLOW IT DOWN.
02:55:27.016 --> 02:55:28.384
WELL WE'RE NOT THE THEIR THE
02:55:28.451 --> 02:55:30.786
TRAIN IS NOT SLOWING DOWN IT'S
02:55:30.853 --> 02:55:31.587
STILL AT WHAT WE VOIGTS.
02:55:31.654 --> 02:55:32.688
OF WHAT WE'VE ALWAYS BEEN
02:55:32.755 --> 02:55:34.824
OBLIGATED TO PROVIDE UNDER
02:55:34.891 --> 02:55:37.260
PROPOSITION ONE A WITH REGARDS
02:55:37.326 --> 02:55:39.228
TO THE COMPETITION --
02:55:39.295 --> 02:55:42.732
I KNOW FOR MYSELF EXPECT IT I
02:55:42.798 --> 02:55:43.566
MEAN.
02:55:43.633 --> 02:55:45.268
WE FOUGHT WE ALL GO TO AIRPORTS
02:55:45.334 --> 02:55:46.669
AND WE GET THERE AN HOUR AND A
02:55:46.736 --> 02:55:48.204
HALF BEFORE WE NEED.
02:55:48.271 --> 02:55:48.738
TO WE NEED TO GET ON THE
02:55:48.804 --> 02:55:49.805
AIRPLANE.
02:55:49.872 --> 02:55:51.140
AND THEN WE GOT A WONDER WAY OUT
02:55:51.207 --> 02:55:53.276
OF AN AIRLINE TERMINAL TO
02:55:53.342 --> 02:55:55.544
WHEREVER WE'RE GOING --
02:55:55.611 --> 02:55:57.179
YOU HAVE AND YOU HAVE NONE OF
02:55:57.246 --> 02:55:58.648
THAT GOING ON WITH HIGH SPEED
02:55:58.714 --> 02:56:00.116
RAIL AND YOU MAY DECIDE TO GO ON
02:56:00.182 --> 02:56:01.450
AN AIRPLANE AND TAKE IT WHAT IS
02:56:01.517 --> 02:56:02.485
IT ABOUT AN HOUR AND THIRTY
02:56:02.551 --> 02:56:03.853
MINUTES TO GET TO LOS ANGELES
02:56:03.920 --> 02:56:05.388
FROM SAN FRANCISCO.
02:56:05.454 --> 02:56:06.689
ARE YOU COULD GO TO OURS AND
02:56:06.756 --> 02:56:07.757
FORTY MINUTES BUT ADD ON TO THE
02:56:07.823 --> 02:56:09.358
SAN FRANCISCO IF YOU'RE STARTING
02:56:09.425 --> 02:56:10.493
THEIR ADD ON ANOTHER HOUR AND A
02:56:10.559 --> 02:56:11.160
HALF.
02:56:11.227 --> 02:56:12.628
WHERE YOU COULD HAVE WALKED TO
02:56:12.695 --> 02:56:15.932
THE A HIGH SPEED RAIL TERMINAL
02:56:15.998 --> 02:56:16.532
AND WALKED ON THE TRAIN AND GO
02:56:16.599 --> 02:56:18.301
ON?
02:56:18.367 --> 02:56:19.869
THE ELAPSED AND I I I I I LOOK I
02:56:19.936 --> 02:56:21.070
HOPE YOU'RE RIGHT I THINK IT'S A
02:56:21.137 --> 02:56:22.571
LOT OF SPECULATION.
02:56:22.638 --> 02:56:24.807
AND THE TRUST LEVEL THAT MANY OF
02:56:24.874 --> 02:56:26.208
US HAVE HERE.
02:56:26.275 --> 02:56:27.543
THAT YESTERDAY'S MISTAKES ARE
02:56:27.610 --> 02:56:29.045
GOING TO BE CORRECTED SO THAT
02:56:29.111 --> 02:56:31.514
TOMORROW IS NOT THE SAME OUTCOME.
02:56:31.580 --> 02:56:33.449
I CAN ONLY TELL YOU I CONTINUE
02:56:33.516 --> 02:56:35.351
TO HAVE REALLY SERIOUS
02:56:35.418 --> 02:56:36.719
RESERVATIONS ABOUT WHETHER YOU
02:56:36.786 --> 02:56:37.887
CAN EVEN DELIVER RECKONED A
02:56:37.954 --> 02:56:39.622
COMPLETED PROJECT AND THE BIG
02:56:39.689 --> 02:56:40.523
QUESTION FOR CENTRAL
02:56:40.589 --> 02:56:42.191
CALIFORNIA'S WHAT YOU GONNA
02:56:42.258 --> 02:56:42.959
LEAVE BEHIND.
02:56:43.025 --> 02:56:45.294
A HUNDRED NINETEEN MILES FROM
02:56:45.361 --> 02:56:46.228
SOMEWHERE TO SOMEWHERE WHERE
02:56:46.295 --> 02:56:47.630
WEARING THAT TO ME IS THE BIG
02:56:47.697 --> 02:56:49.765
BIG PICTURE HERE THAT KEEPS ME
02:56:49.832 --> 02:56:50.866
AWAKE AT NIGHT.
02:56:50.933 --> 02:56:52.635
I'VE I APPRECIATE THAT TOO SURE.
02:56:52.702 --> 02:56:54.670
YEAH WE ARE REQUIRED ALSO TO
02:56:54.737 --> 02:56:56.372
HAVE INDEPENDENT UTILITY.
02:56:56.439 --> 02:56:59.008
AND WHAT DAY AND THAT THAT
02:56:59.075 --> 02:57:02.411
SHOULD THAT NEVER REVEALED IN
02:57:02.478 --> 02:57:04.413
THE EVENT THAT THE PROJECT IS
02:57:04.480 --> 02:57:06.282
STALLED FOR SOME PERIOD OF TIME
02:57:06.349 --> 02:57:07.717
OR PERMANENTLY AGE ISSUE REGIS
02:57:07.783 --> 02:57:09.051
SUGGESTING.
02:57:09.118 --> 02:57:10.619
THAT WHAT WE'VE BUILT HE'S GOT
02:57:10.686 --> 02:57:12.121
TO HAVE INDEPENDENT UTILITY
02:57:12.188 --> 02:57:15.324
WHICH MEANS BE USABLE TO SOME.
02:57:15.391 --> 02:57:17.426
SOME FOR IT SOME OTHER OPERATOR
02:57:17.493 --> 02:57:19.161
IN THIS INSTANCE LIKELY AND
02:57:19.228 --> 02:57:21.697
CENTRAL CALIFORNIA --
02:57:21.764 --> 02:57:23.399
AMTRAK.
02:57:23.466 --> 02:57:25.968
SO THE EIGHT WHAT WE'RE BUILDING
02:57:26.035 --> 02:57:26.602
HOSTAGE SURE WE'VE BEEN TALKING
02:57:26.669 --> 02:57:28.304
ABOUT THIS. FOUR YEARS THAT YOUR
02:57:28.371 --> 02:57:30.606
PLAN BE HAS ALWAYS BEEN KNOWN
02:57:30.673 --> 02:57:30.906
THAT -- YOU
02:57:30.973 --> 02:57:32.975
CAN'T CONNECT AND YOU BASICALLY
02:57:33.042 --> 02:57:34.510
NOW READ MEETING PUBLICLY THAT
02:57:34.577 --> 02:57:36.746
IT IS A MULTIPLE BILLION DOLLAR
02:57:36.812 --> 02:57:38.414
UPGRADE TO AMTRAK.
02:57:38.481 --> 02:57:40.282
UNLESS YOU CAN HAVE A PLAN AND A
02:57:40.349 --> 02:57:42.351
FINANCE AT YOUR DISPOSAL TO
02:57:42.418 --> 02:57:44.520
CONNECT THESE TWO WE'RE GOING TO
02:57:44.587 --> 02:57:46.522
HAVE.
02:57:46.589 --> 02:57:47.923
BILLIONS OF DOLLARS SPENT IN LA
02:57:47.990 --> 02:57:50.126
SAN FRANCISCO AND IN CENTRAL
02:57:50.192 --> 02:57:51.761
CALIFORNIA TO WHAT.
02:57:51.827 --> 02:57:53.229
ULTIMATE PURPOSE THAT'S THE BIG
02:57:53.295 --> 02:57:54.830
PICTURE THAT.
02:57:54.897 --> 02:57:56.265
I'M CONCERNED ABOUT AS AS A
02:57:56.332 --> 02:57:57.700
RESIDENT OF THE AREA
02:57:57.767 --> 02:57:59.702
REPRESENTING IT UP HERE AND ALSO
02:57:59.769 --> 02:58:01.070
THE FORMER MAYOR YOU PLEASE
02:58:01.137 --> 02:58:04.407
DON'T LEAVE BEHIND. NINETEEN
02:58:04.473 --> 02:58:05.041
HUNDRED NINETEEN MILES OF MOUTH
02:58:05.107 --> 02:58:05.741
IT.
02:58:05.808 --> 02:58:07.343
I WOULD TELL YOU TODAY WE'RE NOT
02:58:07.410 --> 02:58:09.145
GOING [inaudible]
02:58:09.211 --> 02:58:10.012
TO WE'LL SEE [inaudible]
02:58:10.079 --> 02:58:15.317
THANK YOU.
02:58:15.384 --> 02:58:17.653
I THANK YOU VERY MUCH --
02:58:17.720 --> 02:58:19.088
US THE SAME QUESTION I ASKED THE
02:58:19.155 --> 02:58:20.122
AUDITOR BUT ALL A LEAVE WITH
02:58:20.189 --> 02:58:20.990
THIS.
02:58:21.057 --> 02:58:22.725
THE LAST SENTENCE OF OF THE
02:58:22.792 --> 02:58:24.627
FIRST PAGE OF THE AUDIT SAYS
02:58:24.693 --> 02:58:25.661
DESPITE ITS CHALLENGING
02:58:25.728 --> 02:58:27.630
FINANCIAL SITUATION WE DETERMINE
02:58:27.696 --> 02:58:28.898
THAT THE AUTHORITY HAS FAILED TO
02:58:28.964 --> 02:58:29.965
IMPLEMENT SOUND CONTRACT
02:58:30.032 --> 02:58:31.600
MANAGEMENT PRACTICES.
02:58:31.667 --> 02:58:32.101
AS A RESULT WE CANNOT
02:58:32.168 --> 02:58:33.736
DEMONSTRATE THE THE LARGE
02:58:33.803 --> 02:58:35.004
AMOUNTS OF HAS SPENT ON ITS
02:58:35.071 --> 02:58:37.273
CONTRACTS HAVE BEEN NECESSARY OR
02:58:37.339 --> 02:58:39.075
APPROPRIATE.
02:58:39.141 --> 02:58:40.709
AND THEN NOW WE FEAR THAT THEIR
02:58:40.776 --> 02:58:42.845
WE KNOW THAT THERE ARE AUDITS IN
02:58:42.912 --> 02:58:44.346
TWENTY TEN AND TWENTY TWELVE
02:58:44.413 --> 02:58:44.814
DONE BY THE DOCTOR.
02:58:44.880 --> 02:58:46.949
THAT THEIR INTERNAL AUDITS DONE
02:58:47.016 --> 02:58:48.384
IN TWENTY FIFTEEN AND TWENTY
02:58:48.451 --> 02:58:50.352
SIXTY WHAT GRADE DO YOU GIVE THE
02:58:50.419 --> 02:58:52.154
AUTHORITY IN ITS MEASURE
02:58:52.221 --> 02:58:53.389
PRACTICES.
02:58:53.456 --> 02:58:54.723
WELL -- YOU
02:58:54.790 --> 02:58:56.759
KNOW I DON'T KNOW WHAT GRADE DO
02:58:56.826 --> 02:58:57.793
IT PUT IT PUT TO IT AS YOU GIVE
02:58:57.860 --> 02:58:59.528
HAS ALREADY AUDITOR'S SUGGESTED
02:58:59.595 --> 02:59:00.996
INCOMPLETE --
02:59:01.063 --> 02:59:02.965
I WHICH I WOULD ONLY SUGGEST
02:59:03.032 --> 02:59:04.266
THAT.
02:59:04.333 --> 02:59:06.202
AS A RESULT OF AT LEAST VERY
02:59:06.268 --> 02:59:09.071
POOR DOCUMENTATION --
02:59:09.138 --> 02:59:12.108
IF I HAVE PUT A GREAT ON AND I
02:59:12.174 --> 02:59:13.576
WOULD SAY IT'S CORRECTABLE AND I
02:59:13.642 --> 02:59:15.044
WOULD SAY IT'S BEING CORRECTED
02:59:15.111 --> 02:59:16.612
RIGHT NOW SO YOU DON'T GET A
02:59:16.679 --> 02:59:17.379
PASSING GRADE RIGHT NOW.
02:59:17.446 --> 02:59:19.715
I I I I THINK YOU'RE STILL IN
02:59:19.782 --> 02:59:21.550
CLASS.
02:59:21.617 --> 02:59:22.918
OKAY WELL I'M GRADING RIGHT NOW
02:59:22.985 --> 02:59:24.954
AND GIVE ME A PASSING GRADE --
02:59:25.020 --> 02:59:26.555
HOW LAW?
02:59:26.622 --> 02:59:28.624
IN TERMS OF BEING THIS BEING A
02:59:28.691 --> 02:59:29.925
STRUCTURAL.
02:59:29.992 --> 02:59:32.461
MANAGEMENT SYSTEMATIC FAILURE IN
02:59:32.528 --> 02:59:33.929
THE AUTHORITY DO YOU AGREE WITH
02:59:33.996 --> 02:59:35.531
THAT ASSESSMENT.
02:59:35.598 --> 02:59:36.132
I WOULD SAY IT'S BEEN PRETTY
02:59:36.198 --> 02:59:39.335
CHALLENGING THAT IN THE PAST AND
02:59:39.401 --> 02:59:41.971
IT AS AS AS YOU MISTER PATTERSON
02:59:42.037 --> 02:59:44.940
SAID WITHOUT WITHOUT.
02:59:45.007 --> 02:59:46.542
FOCUSING TOO MUCH ON THE PAST I
02:59:46.609 --> 02:59:47.676
AM VERY.
02:59:47.743 --> 02:59:50.779
CONFIDENT IN OUR CURRENT SENIOR
02:59:50.846 --> 02:59:52.715
LEADERSHIP FOR THIS PROGRAM --
02:59:52.781 --> 02:59:54.917
AND I THINK WHAT'S INTERESTING
02:59:54.984 --> 02:59:55.951
TO ME.
02:59:56.018 --> 02:59:59.155
WITH THIS AUDIT AND I TELL YA I
02:59:59.221 --> 03:00:01.457
I REALLY APPRECIATE IT AND I'M
03:00:01.524 --> 03:00:03.192
HAPPY I'M HAPPY WE'VE GOT IT BUT
03:00:03.259 --> 03:00:04.727
WHAT I'M ALSO HAPPY ABOUT.
03:00:04.793 --> 03:00:07.296
IS IT'S IDENTIFYING NUMBERS OF
03:00:07.363 --> 03:00:07.863
THINGS THAT WE ALREADY KNEW
03:00:07.930 --> 03:00:10.566
ABOUT AND WE WERE IN THE PROCESS
03:00:10.633 --> 03:00:12.134
OF CHANGING AND I WOULD.
03:00:12.201 --> 03:00:13.369
YOU KNOW I WOULD ENCOURAGE AND
03:00:13.435 --> 03:00:16.772
ALL IT COULD BE SCHEDULED AGAIN
03:00:16.839 --> 03:00:18.274
BY THE STATE AUDITOR.
03:00:18.340 --> 03:00:19.708
AND I WOULD EXPECT TO SEE
03:00:19.775 --> 03:00:22.645
MASSIVE IMPROVEMENT IN ALL THE
03:00:22.711 --> 03:00:24.547
AREAS THAT THEY'VE IDENTIFIED.
03:00:24.613 --> 03:00:26.415
WE HAVE TO WE HAVE TO FOCUS ON
03:00:26.482 --> 03:00:28.551
THE PAST BECAUSE THAT'S THE ONLY
03:00:28.617 --> 03:00:29.385
PARTICULAR.
03:00:29.451 --> 03:00:31.687
RIGHT AND SO RIGHT NOW I HAVE
03:00:31.754 --> 03:00:35.024
[inaudible] FIVE AUDITS. FIVE
03:00:35.090 --> 03:00:36.859
ARE AT THAT OUTLINED THE SAME
03:00:36.926 --> 03:00:38.694
MANAGEMENT STRUCTURAL FAILURES.
03:00:38.761 --> 03:00:42.198
AND ANY AND ME FORTUNATE
03:00:42.264 --> 03:00:42.831
UNFORTUNATELY YEAR ON THE AUDIT
03:00:42.898 --> 03:00:43.599
COMMITTEE.
03:00:43.666 --> 03:00:45.968
SO YOU ARE ON THE THE PERSON
03:00:46.035 --> 03:00:47.836
THAT HAS TO ANSWER THE QUESTION --
03:00:47.903 --> 03:00:50.005
AND SO --
03:00:50.072 --> 03:00:51.941
FROM THAT STANDPOINT YOU KNOW.
03:00:52.007 --> 03:00:53.609
CALIFORNIANS ARE RIGHTFULLY
03:00:53.676 --> 03:00:55.110
UPSET.
03:00:55.177 --> 03:00:58.447
AT WHAT'S HAPPENING AND AND CAN
03:00:58.514 --> 03:01:00.082
IF IT'S A SYSTEMATIC STRUCTURAL
03:01:00.149 --> 03:01:01.317
PROBLEM.
03:01:01.383 --> 03:01:02.718
THEN THROWING MORE MONEY WHICH I
03:01:02.785 --> 03:01:05.321
MUST AND REMIND YOU IS NOT YOUR
03:01:05.387 --> 03:01:06.722
MONEY IN IS NOT OUR MONEY.
03:01:06.789 --> 03:01:08.757
THE HARD EARNED TAX DOLLARS OF
03:01:08.824 --> 03:01:09.858
THE PEOPLE OF CALIFORNIA.
03:01:09.925 --> 03:01:12.261
IN SO HOW CAN YOU JUSTIFY AND
03:01:12.328 --> 03:01:14.230
DEFEND THROWING MORE MONEY INTO
03:01:14.296 --> 03:01:18.500
A SYSTEM THAT IS FAILING.
03:01:18.567 --> 03:01:19.535
WELL I DON'T THINK THE I THINK
03:01:19.602 --> 03:01:21.337
THAT I THINK THAT IN OUR
03:01:21.403 --> 03:01:23.639
MANAGEMENT OF OF SOME OF THE
03:01:23.706 --> 03:01:24.873
ADMINISTRATIVE REQUIREMENTS TO
03:01:24.940 --> 03:01:26.008
THE SYSTEM.
03:01:26.075 --> 03:01:27.977
WE HAVE NOT DONE A GOOD JOB FOR
03:01:28.043 --> 03:01:29.478
THE TAXPAYERS OF THE STATE OF
03:01:29.545 --> 03:01:30.179
CALIFORNIA.
03:01:30.246 --> 03:01:31.447
AND FOR THE TAXPAYERS ANOTHER
03:01:31.513 --> 03:01:33.682
STATE BROUGHT IN THE FEDERAL
03:01:33.749 --> 03:01:35.284
MONEY.
03:01:35.351 --> 03:01:37.186
I BELIEVE THAT WE WERE ALREADY
03:01:37.253 --> 03:01:38.954
IN THE PROCESS OF FIXING THAT I
03:01:39.021 --> 03:01:40.489
CAN'T CHANGE.
03:01:40.556 --> 03:01:41.857
THE PERCEPTION FROM THE PAST AND
03:01:41.924 --> 03:01:43.859
I I'M IS TROUBLED BY IT ISSUE
03:01:43.926 --> 03:01:46.028
ARE AND WELL I MEAN I'M I DON'T
03:01:46.095 --> 03:01:47.496
FEEL BADLY ABOUT BEING ON THE
03:01:47.563 --> 03:01:48.797
AUDIT COMMITTEE.
03:01:48.864 --> 03:01:49.832
I AM VERY HAPPY I AM ON THE
03:01:49.898 --> 03:01:51.066
AUDIT COMMITTEE.
03:01:51.133 --> 03:01:53.335
AND THAT'S WHY IN TWO THOUSAND
03:01:53.402 --> 03:01:55.638
AND FIFTEEN AND SIXTEEN WHEN WE
03:01:55.704 --> 03:01:59.408
WHEN WE REQUIRE THOSE AUDITS --
03:01:59.475 --> 03:02:01.443
WE DID THAT BECAUSE OF CONCERN
03:02:01.510 --> 03:02:03.579
AND WE WERE WORKING ON IT --
03:02:03.646 --> 03:02:05.581
THROUGH TWO THOUSAND AND
03:02:05.648 --> 03:02:07.616
SEVENTEEN AND PUT IN PLACE AT
03:02:07.683 --> 03:02:08.617
LEAST THE POLICIES AND
03:02:08.684 --> 03:02:10.753
PROCEDURES WHICH ARE FAR GROUP
03:02:10.819 --> 03:02:12.988
FAR MORE THAN THE STATE'S.
03:02:13.055 --> 03:02:18.460
S. THE THE M. SEM --
03:02:18.527 --> 03:02:20.162
WE HAVE EIGHTEEN SPECIFIC
03:02:20.229 --> 03:02:22.331
POLICIES THAT WE'VE IT WITH THAT
03:02:22.398 --> 03:02:23.499
WE'VE INCORPORATED AND IT.
03:02:23.565 --> 03:02:25.501
I THINK THAT WHAT THE ONLY
03:02:25.567 --> 03:02:28.537
CHALLENGE IS HERE AND IT'S VERY
03:02:28.604 --> 03:02:30.306
HARD TO OVERCOME PERCEPTIONS
03:02:30.372 --> 03:02:31.807
FROM THIS PAST.
03:02:31.874 --> 03:02:33.242
BUT WHAT WE ARE DOING TODAY AND
03:02:33.309 --> 03:02:36.078
IN THE FUTURE IS WHAT YOU WOULD
03:02:36.145 --> 03:02:37.813
HAVE EXPECTED TO SEE AN BEFORE.
03:02:37.880 --> 03:02:42.251
IN TERMS OF FUNDING AND MAYBE --
03:02:42.318 --> 03:02:43.018
MAYBE SHE HAD JUST CAN ANSWER
03:02:43.085 --> 03:02:44.019
THIS HOW MUCH MONEY HAVE YOU
03:02:44.086 --> 03:02:48.557
SECURED.
03:02:48.624 --> 03:02:49.692
SIR CAN ANSWER QUESTION AGAIN
03:02:49.758 --> 03:02:52.461
HOW MUCH MONEY DO YOU HAVE.
03:02:52.528 --> 03:02:53.662
HOW MUCH BY HOW MUCH MONEY THE
03:02:53.729 --> 03:02:55.597
AUTHORITY HAVE?
03:02:55.664 --> 03:02:58.100
THE BILL WHICH MONEY DO WE HAVE
03:02:58.167 --> 03:03:01.170
TO AVAIL ARCH TO TO BUILD.
03:03:01.236 --> 03:03:02.204
THIS PROJECT --
03:03:02.271 --> 03:03:03.305
MISTER MISTER FONG WHAT WE HAVE
03:03:03.372 --> 03:03:04.473
IS WE HAVE ALL THE MONEY
03:03:04.540 --> 03:03:06.909
NECESSARY TO COMPLETE THE
03:03:06.975 --> 03:03:08.944
HUNDRED NINETEEN MILES.
03:03:09.011 --> 03:03:10.913
HOW MUCH MONEY IS THAT?
03:03:10.979 --> 03:03:13.048
THE THE ENTIRE PROJECT YEAH --
03:03:13.115 --> 03:03:15.117
IT'S IT'S IT'S IT WOULD CRUSH
03:03:15.184 --> 03:03:16.785
CENTRAL VALLEY RIGHT NOW THE
03:03:16.852 --> 03:03:18.020
BUSINESS PLAN EIGHTEEN IS
03:03:18.087 --> 03:03:22.324
REPORTING THAT A TEN POINT.
03:03:22.391 --> 03:03:25.160
SIX IF YOU WANT TO THE BOOKENDS.
03:03:25.227 --> 03:03:25.994
I ENCOMPASSES THE BOOKENDS ADDED
03:03:26.061 --> 03:03:28.697
INTO THAT THAT MAKES IT ABOUT --
03:03:28.764 --> 03:03:29.898
THIRTEEN POINT.
03:03:29.965 --> 03:03:32.201
FOUR OKAY THE ORDER HAS SECURED
03:03:32.267 --> 03:03:34.503
FUNDING TWELVE POINT SEVEN TO
03:03:34.570 --> 03:03:36.004
THE THE RIGHTS AND ALL THAT.
03:03:36.071 --> 03:03:37.506
ALL THAT IS WORTH WITH IN OUR
03:03:37.573 --> 03:03:38.841
CURRENT.
03:03:38.907 --> 03:03:40.876
CAP AND TRADE BUDGET AND WITHIN
03:03:40.943 --> 03:03:43.278
OUR CURRENT PROPOSITION ONE A
03:03:43.345 --> 03:03:44.713
FUNDING AND IN YOUR BUSINESS
03:03:44.780 --> 03:03:48.050
PLAN HAS THE FULL SYSTEM AT
03:03:48.117 --> 03:03:49.551
SEVENTY SEVEN BILLION TO NINETY
03:03:49.618 --> 03:03:50.452
EIGHT BILLION.
03:03:50.519 --> 03:03:51.053
PHASE.
03:03:51.120 --> 03:03:53.922
ONE PHASE.
03:03:53.989 --> 03:03:57.493
PHASE ONE THAT YOU ARE UP AND
03:03:57.559 --> 03:03:59.094
TWENTY TEN WHAT WAS THE ORIGINAL
03:03:59.161 --> 03:04:00.362
ESTIMATE OF THE SYSTEM.
03:04:00.429 --> 03:04:03.699
AT THE BEGINNING.
03:04:03.766 --> 03:04:04.933
YOU KNOW EN.
03:04:05.000 --> 03:04:07.636
GOING BACK TO TWENTY NINE AT TWO
03:04:07.703 --> 03:04:10.139
THOUSAND AND NINE AND TWO
03:04:10.205 --> 03:04:12.975
THOUSAND AND TEN THIRTY FIVE THE
03:04:13.041 --> 03:04:14.209
I I THINK THE FIRST ONE WHEN
03:04:14.276 --> 03:04:15.811
THEY ACTUALLY USED A YEAR OF
03:04:15.878 --> 03:04:19.448
EXPENDITURE WAS SOMETHING LIKE.
03:04:19.515 --> 03:04:20.082
FORTY TWO SIX FORTY TWO SIX VIA
03:04:20.149 --> 03:04:21.950
CELL I APPRECIATE YOU TRYING TO
03:04:22.017 --> 03:04:24.753
SAY THAT THERE'S THE COST
03:04:24.820 --> 03:04:26.021
OVERRUNS AND CAR [inaudible]
03:04:26.088 --> 03:04:29.458
EMBEDDED BUT I'M LOOKING AT A
03:04:29.525 --> 03:04:31.760
SIGNIFICANT COST OVER A FROM
03:04:31.827 --> 03:04:35.063
FORTY TWO BILLION. TO SEVENTY
03:04:35.130 --> 03:04:35.697
SEVEN TO NINETY EIGHT BILLION.
03:04:35.764 --> 03:04:37.332
IF IT CAN I TAKE A MOMENT TO
03:04:37.399 --> 03:04:39.835
START DRESSING --
03:04:39.902 --> 03:04:40.936
I HAVE --
03:04:41.003 --> 03:04:42.771
I'LL JUST PUT IT I HAVE A GOOD
03:04:42.838 --> 03:04:44.573
DEAL OF COMPASSION.
03:04:44.640 --> 03:04:45.908
FOR THE PEOPLE WHO --
03:04:45.974 --> 03:04:47.242
PRECEDED US --
03:04:47.309 --> 03:04:50.045
ON THE BOARD --
03:04:50.112 --> 03:04:52.748
YOU'VE SEEN JUST BY WHAT IS
03:04:52.815 --> 03:04:54.249
HAPPENED ON THIS AUDIT AND THE
03:04:54.316 --> 03:04:56.385
TESTIMONY --
03:04:56.452 --> 03:04:57.719
THE CHECK OUT A CHALLENGE OF THE
03:04:57.786 --> 03:05:00.189
PROJECT IS NOT HAVING ALL THE
03:05:00.255 --> 03:05:01.290
INFORMATION.
03:05:01.356 --> 03:05:03.091
GOING BACK TO TWO THOUSAND AND
03:05:03.158 --> 03:05:04.293
NINE AND TWO THOUSAND AND TEN I
03:05:04.359 --> 03:05:05.727
DON'T KNOW WHERE THEY WHAT
03:05:05.794 --> 03:05:07.463
INFORMATION THEY HAD EITHER.
03:05:07.529 --> 03:05:08.430
AND WHAT I THINK YOU'VE SEEN
03:05:08.497 --> 03:05:11.400
THAT WE'VE DONE YOU FONG SINCE
03:05:11.467 --> 03:05:12.634
THEN.
03:05:12.701 --> 03:05:15.103
IS THAT WHEN WE WHEN WE FIRST
03:05:15.170 --> 03:05:17.139
CAME ON THE THE BULK OF THE
03:05:17.206 --> 03:05:19.341
BOARD THAT IS IS CURRENTLY ON
03:05:19.408 --> 03:05:22.044
THE HIGH SPEED RAIL AUTHORITY --
03:05:22.110 --> 03:05:24.580
WE WERE INVOLVED IN THAT THERE
03:05:24.646 --> 03:05:25.814
ARE FOR OUR FIRST.
03:05:25.881 --> 03:05:27.883
BUSINESS PLAN TO YOU IS IN TWO
03:05:27.950 --> 03:05:29.418
THOUSAND AND TWELVE WE WENT
03:05:29.485 --> 03:05:31.153
THROUGH TWO OR THREE DRAFTS AND
03:05:31.220 --> 03:05:33.489
ONE FINAL --
03:05:33.555 --> 03:05:36.492
WE HAD MORE INFORMATION THEN
03:05:36.558 --> 03:05:37.993
ANYBODY WHO WOULD WORK ON IT AND
03:05:38.060 --> 03:05:39.495
ALL THE WAY BACK TO WHEN
03:05:39.561 --> 03:05:40.796
PROPOSITION.
03:05:40.863 --> 03:05:42.965
ONE EIGHTY PLUS NINE AND TEN OUR
03:05:43.031 --> 03:05:45.000
NUMBER WAS.
03:05:45.067 --> 03:05:46.168
SIXTY EIGHT FOUR OUR NUMBER IN
03:05:46.235 --> 03:05:47.736
OUR TWO THOUSAND TWELVE BUSINESS
03:05:47.803 --> 03:05:50.906
PAN IS. SIXTY EIGHT FOUR EIGHT
03:05:50.973 --> 03:05:51.840
YEARS LATER --
03:05:51.907 --> 03:05:54.443
EXCUSE ME SIX YEARS LATER WE'RE
03:05:54.510 --> 03:05:56.845
TOO WE'RE AT SEVEN WHO WERE AT
03:05:56.912 --> 03:05:58.180
SEVENTY SEVEN ONE IT'S ABOUT A
03:05:58.247 --> 03:05:59.748
12% INCREASE.
03:05:59.815 --> 03:06:01.283
I CAN I UNDERSTAND WHAT YOU'RE
03:06:01.350 --> 03:06:04.319
SAYING BECAUSE WE'RE ALL LIVING
03:06:04.386 --> 03:06:05.420
WITH IT.
03:06:05.487 --> 03:06:06.822
WHAT WAS ESTIMATED IN TWO
03:06:06.889 --> 03:06:08.190
THOUSAND AND EIGHT AND?
03:06:08.257 --> 03:06:10.392
NINE I DON'T KNOW WHAT THE BASIS
03:06:10.459 --> 03:06:12.294
FOR THE INFORMATION WISE I DO
03:06:12.361 --> 03:06:13.962
KNOW THE BASIS FOR THE
03:06:14.029 --> 03:06:15.464
INFORMATION FROM THE TIME WE CAN
03:06:15.531 --> 03:06:17.032
WE CAME IN.
03:06:17.099 --> 03:06:17.866
AND WE'VE BEEN PRETTY CONSISTENT
03:06:17.933 --> 03:06:19.868
WITH IT.
03:06:19.935 --> 03:06:20.903
SO I APPRECIATE YOUR POINT
03:06:20.969 --> 03:06:23.372
BECAUSE WE ALL MAKING DECISIONS
03:06:23.438 --> 03:06:24.873
ON AND PERFECT INFORMATION AND
03:06:24.940 --> 03:06:25.607
WE WORK TOGETHER MORE
03:06:25.674 --> 03:06:27.309
INFORMATION YOU THE PROBLEM
03:06:27.376 --> 03:06:28.744
RIGHT NOW THAT EXISTS IS THAT
03:06:28.810 --> 03:06:30.812
THE MORE INFORMATION WE GET.
03:06:30.879 --> 03:06:31.647
THE MORE WE WANT TO STOP THIS
03:06:31.713 --> 03:06:34.116
PROJECT AND THAT'S THE CONCERN.
03:06:34.182 --> 03:06:36.985
NOW CAN YOU OUTLINE TO ME.
03:06:37.052 --> 03:06:39.054
HOW THE PROJECT HAS CHANGED OR
03:06:39.121 --> 03:06:42.324
EVOLVED SINCE? TWO THOUSAND FOR
03:06:42.391 --> 03:06:42.958
FROM THE FIRST BUSINESS PLAN TO
03:06:43.025 --> 03:06:45.227
WHAT IT IS NOW.
03:06:45.294 --> 03:06:45.994
FROM.
03:06:46.061 --> 03:06:47.229
IT FROM --
03:06:47.296 --> 03:06:48.230
COST PERSPECTIVE ON FROM THE
03:06:48.297 --> 03:06:52.501
FROM THE ACT AT MINUS ANYWAY AS
03:06:52.568 --> 03:06:53.468
TO THE AUDITOR AND AND EVERYONE
03:06:53.535 --> 03:06:55.037
UNDERSTANDS IS THAT WHEN THE THE
03:06:55.103 --> 03:06:57.773
VOTERS VOTED. FOR HIGH SPEED
03:06:57.839 --> 03:07:00.676
RAIL OR WHEN A IT WAS TO BE A
03:07:00.742 --> 03:07:02.945
STANDALONE PROJECT.
03:07:03.011 --> 03:07:04.446
IS THAT THE CASE CURRENTLY.
03:07:04.513 --> 03:07:06.748
IT NOT TO THE EXTENT THAT THERE
03:07:06.815 --> 03:07:08.617
IS THERE IS BLENDING AND UTILIZE
03:07:08.684 --> 03:07:11.753
UTILIZING AT OTHER EXISTING
03:07:11.820 --> 03:07:14.022
RIGHT AT BOTH RIGHTS OF WAY AND
03:07:14.089 --> 03:07:15.457
IMPROVEMENTS.
03:07:15.524 --> 03:07:18.627
AS PRIMARILY IN YOU KNOW IN THE
03:07:18.694 --> 03:07:20.495
IN THE SHED IN THE CORNER AT SAN
03:07:20.562 --> 03:07:22.164
JOSE SAN FRANCISCO.
03:07:22.230 --> 03:07:23.265
AND MORE RECENTLY AS WE'VE
03:07:23.332 --> 03:07:25.467
IDENTIFIED IN THE TWO THOUSAND
03:07:25.534 --> 03:07:27.970
EIGHTEEN PLAN FROM GILROY. TO
03:07:28.036 --> 03:07:29.504
SAN JOSE AND THEN FROM OF
03:07:29.571 --> 03:07:31.807
BURBANK IT DOWN TO LOS ANGELES
03:07:31.873 --> 03:07:33.041
UNION STATION.
03:07:33.108 --> 03:07:35.544
AND IS AUDITOR POINTED OUT I
03:07:35.611 --> 03:07:36.878
THINK WAS TEN SOMETHING.
03:07:36.945 --> 03:07:38.413
THAT BILLION OR TWELVE SOMETHING
03:07:38.480 --> 03:07:40.082
BILLION IN TERMS OF WHAT THE
03:07:40.148 --> 03:07:41.450
REDUCE COSTS WERE.
03:07:41.516 --> 03:07:45.887
WHAT WE FOCUSED ON MISTER
03:07:45.954 --> 03:07:46.989
MYSTERY AT FONG?
03:07:47.055 --> 03:07:49.091
IS HOW DO WE CONTROL COSTS.
03:07:49.157 --> 03:07:49.992
AND HOW DO WE AT THE SAME TIME
03:07:50.058 --> 03:07:51.526
CONTROL COSTS.
03:07:51.593 --> 03:07:55.230
AND COMPLY WITH PROPOSITION ONE
03:07:55.297 --> 03:07:59.768
A SO BY I BUT TO MY ORIGINAL
03:07:59.835 --> 03:08:01.637
POINT RIGHT WHICH IS THAT IT'S
03:08:01.703 --> 03:08:02.971
NO LONGER WHAT THAT WHAT THE
03:08:03.038 --> 03:08:04.373
VOTERS VOTED.
03:08:04.439 --> 03:08:05.774
WITH THREE WITH RESPECT TO THE
03:08:05.841 --> 03:08:06.908
WAS NO LONGER STAND ALONE
03:08:06.975 --> 03:08:08.744
PROJECT WITH RESPECT RESPECT
03:08:08.810 --> 03:08:09.645
RESPECT --
03:08:09.711 --> 03:08:11.179
TO THE STANDALONE PROJECT TAX
03:08:11.246 --> 03:08:12.214
CORRECT.
03:08:12.280 --> 03:08:13.949
WHEN MISTER KELLY TESTIFIED
03:08:14.016 --> 03:08:16.318
BEFORE US AND WE PROBABLY BACK
03:08:16.385 --> 03:08:17.786
OF THE ENVELOPE ESTIMATED THAT
03:08:17.853 --> 03:08:18.153
THE PROJECT --
03:08:18.220 --> 03:08:20.656
PASSES PROBABLY FIFTY FOUR
03:08:20.722 --> 03:08:22.190
BILLION DOLLARS BY.
03:08:22.257 --> 03:08:25.427
A MADE IF YOU IF YOU FACTOR IN
03:08:25.494 --> 03:08:25.961
IN MAY AND IF YOU READ THE
03:08:26.028 --> 03:08:29.998
BUSINESS THE PROJECT A PASS AS
03:08:30.065 --> 03:08:31.633
AN UNFUNDED ASSET.
03:08:31.700 --> 03:08:33.135
THAT IS CORRECT THAT'S CORRECT
03:08:33.201 --> 03:08:35.270
SO WHERE THERE IS NO FOR FUNDING
03:08:35.337 --> 03:08:37.139
FOR RIGHT NOW THAT'S GRAND RIGHT
03:08:37.205 --> 03:08:38.907
SO SO AS MISTER PASS AND
03:08:38.974 --> 03:08:40.275
PATTERSON ALLIED WE HAVE.
03:08:40.342 --> 03:08:42.844
A CENTRAL VALLEY SEGMENT THAT
03:08:42.911 --> 03:08:44.813
RIGHT NOW IS.
03:08:44.880 --> 03:08:45.047
WE GOT.
03:08:45.113 --> 03:08:46.615
TO FIGURE THAT OUT AND THEN
03:08:46.682 --> 03:08:49.718
YOU'VE GOT THE BAY AREA SEGMENT.
03:08:49.785 --> 03:08:51.119
RIGHT BUT IT DOESN'T CONNECT.
03:08:51.186 --> 03:08:52.721
RIGHT SO IS THAT THAT'S A THAT
03:08:52.788 --> 03:08:55.791
IS A TRUE STATEMENT.
03:08:55.857 --> 03:08:56.792
IT'S A TRUE STATEMENT THAT WE
03:08:56.858 --> 03:08:58.360
HAVEN'T IDENTIFIED THE FUNDING
03:08:58.427 --> 03:09:00.762
FOR ANYTHING THAT BEYOND WHAT
03:09:00.829 --> 03:09:02.931
YOU MENTIONED A FEW MOMENTS AGO.
03:09:02.998 --> 03:09:04.933
RIGHT I'VE ADDED BY THE FUNDING
03:09:05.000 --> 03:09:05.934
FOR IT AND FIND IT A WE COULD
03:09:06.001 --> 03:09:07.069
YEAH THAT'S RIGHT NUMBER SO NOT
03:09:07.135 --> 03:09:07.669
STUDENTS IN TERMS OF HOW TO
03:09:07.736 --> 03:09:08.537
DEFINE THAT BUT RIGHT NOW THERE
03:09:08.603 --> 03:09:09.705
IS NO MONEY FOR THAT SECTION
03:09:09.771 --> 03:09:10.972
THAT'S GREAT SO WE DO HAVE SO
03:09:11.039 --> 03:09:13.108
RIGHT NOW THE PUBLIC IS LOOKING.
03:09:13.175 --> 03:09:15.610
AT A PROJECT THAT IS.
03:09:15.677 --> 03:09:17.379
THAT DOESN'T CONNECT.
03:09:17.446 --> 03:09:18.680
WITHOUT ADDITIONAL FUNDING THE
03:09:18.747 --> 03:09:19.781
THAT THAT'S CORRECT [inaudible]
03:09:19.848 --> 03:09:21.883
RIGHT.
03:09:21.950 --> 03:09:23.185
AND AND SO DO YOU THINK THE
03:09:23.251 --> 03:09:25.454
PUBLIC UNDERSTANDS THAT.
03:09:25.520 --> 03:09:27.122
I THINK FROM --
03:09:27.189 --> 03:09:28.790
FROM THE EIGHT YEARS OF BOARD
03:09:28.857 --> 03:09:29.591
MEETINGS THAT --
03:09:29.658 --> 03:09:31.593
I'VE ATTENDED I THINK THAT AT
03:09:31.660 --> 03:09:33.261
LEAST THE PUBLIC BECOMES AND
03:09:33.328 --> 03:09:34.262
ADDRESSES THIS BOARD CLEARLY
03:09:34.329 --> 03:09:36.631
UNDERSTANDS THAT YOU THINK THE
03:09:36.698 --> 03:09:39.167
PUBLIC WOULD ACCEPT THAT.
03:09:39.234 --> 03:09:39.935
THAT I CAN'T SPEAK FOR THE
03:09:40.001 --> 03:09:41.803
PUBLIC I MEAN I THINK THE
03:09:41.870 --> 03:09:43.138
DECISIONS THAT WE MADE OUR CLEAR
03:09:43.205 --> 03:09:44.940
WITH IS IT WITH REGARDS TO
03:09:45.006 --> 03:09:46.174
BLENDING --
03:09:46.241 --> 03:09:47.509
WERE NOT NECESSARILY
03:09:47.576 --> 03:09:49.544
CONTEMPLATED IN PROPOSITION ONE
03:09:49.611 --> 03:09:51.813
NAY BUT I THINK THAT WHAT THE
03:09:51.880 --> 03:09:53.048
RESULT OF IT IS IS IT
03:09:53.115 --> 03:09:54.783
DRAMATICALLY REDUCE THE COSTS
03:09:54.850 --> 03:09:56.151
THAT WE WERE SEEING.
03:09:56.218 --> 03:09:58.453
WHEN WE CAME IN AND JOINED THE
03:09:58.520 --> 03:10:01.690
BOARD IN TWO THOUSAND AND?
03:10:01.757 --> 03:10:03.258
TWELVE I'LL JUST IN MY AND MY
03:10:03.325 --> 03:10:05.093
LAST STATEMENT IS IT IS IT IS
03:10:05.160 --> 03:10:06.428
AYE AYE AYE REPRESENT.
03:10:06.495 --> 03:10:07.796
OF COURSE KERN COUNTY THEM AND
03:10:07.863 --> 03:10:08.764
SO WE ARE AFFECTED AS WELL FROM
03:10:08.830 --> 03:10:10.499
THIS PROJECT AND THE
03:10:10.565 --> 03:10:13.435
FRUSTRATIONS I HEAR FROM MY
03:10:13.502 --> 03:10:15.203
CONSTITUENTS --
03:10:15.270 --> 03:10:17.672
AB ARE PRETTY INTENSE AND SO.
03:10:17.739 --> 03:10:20.308
WHEN THE REPORT CONCLUDES?
03:10:20.375 --> 03:10:21.409
AND THAT THE AUTHORITIES FLOOD
03:10:21.476 --> 03:10:22.711
DECISION MAKING REGARDING THE
03:10:22.778 --> 03:10:24.112
START OF HIGH SPEED WITH OF THE
03:10:24.179 --> 03:10:25.046
HIGH SPEED RAIL SYSTEM
03:10:25.113 --> 03:10:25.981
CONSTRUCTION IN THE CENTER
03:10:26.047 --> 03:10:26.515
VALLEY.
03:10:26.581 --> 03:10:27.983
ITS ONGOING POOR CONTRACT
03:10:28.049 --> 03:10:29.684
MANAGEMENT FOR A WIDE RANGE OF
03:10:29.751 --> 03:10:30.418
HIGH VALUE CONTRACTS HAVE
03:10:30.485 --> 03:10:31.853
CONTRIBUTED TO BILLIONS OF
03:10:31.920 --> 03:10:33.355
DOLLARS IN COST OVER RUNS FROM
03:10:33.421 --> 03:10:35.123
COMPLETING THE SYSTEM WHICH IS
03:10:35.190 --> 03:10:35.690
IN THE FIRST PARAGRAPH THIS
03:10:35.757 --> 03:10:37.392
AUDIT.
03:10:37.459 --> 03:10:38.960
THAT IS A TRUE STATEMENT.
03:10:39.027 --> 03:10:40.295
I DON'T BELIEVE I DON'T I WOULD
03:10:40.362 --> 03:10:41.897
NOT CHARACTERIZE IT THAT WAY NOW
03:10:41.963 --> 03:10:42.964
BUT THE PERCEPTION IS NOW
03:10:43.031 --> 03:10:44.933
BECOMING A REALITY AND I THINK
03:10:45.000 --> 03:10:46.568
WELL AND AND AND AND NO MATTER
03:10:46.635 --> 03:10:47.836
HOW YOU DEFINE WHAT YOU'VE BUILT
03:10:47.903 --> 03:10:49.171
IN THESE OVER RENTS ARE NOT.
03:10:49.237 --> 03:10:52.541
I'M LOOKING AT EIGHT FORTY TWO
03:10:52.607 --> 03:10:53.441
BILLION DOLLAR ESTIMATE AT THE
03:10:53.508 --> 03:10:55.177
BEGINNING IN TWENTY TEN AND I'M
03:10:55.243 --> 03:10:57.145
LOOKING OUT A PROJECT SEVEN
03:10:57.212 --> 03:10:58.180
SEVEN BILLION TO NINETY EIGHT
03:10:58.246 --> 03:10:58.880
BILLION DOLLARS WHICH IS A
03:10:58.947 --> 03:11:00.549
PRETTY WIDE RANGE.
03:11:00.615 --> 03:11:02.584
RIGHT IT'S TWENTY BILLION
03:11:02.651 --> 03:11:03.518
DOLLARS.
03:11:03.585 --> 03:11:05.287
AND SO THAT IS A SIGNIFICANT
03:11:05.353 --> 03:11:07.656
INCREASE AND OF COURSE YOU NOW
03:11:07.722 --> 03:11:08.857
YOU TELL ME THAT A DOCTOR CAN
03:11:08.924 --> 03:11:10.892
ACT AS UNFUNDED AND THEN NOW WE
03:11:10.959 --> 03:11:12.194
DON'T EVEN KNOW IF IT'S GOING TO
03:11:12.260 --> 03:11:13.428
GO OVER A HUNDRED BILLION
03:11:13.495 --> 03:11:13.695
DOLLARS.
03:11:13.762 --> 03:11:14.696
WILL.
03:11:14.763 --> 03:11:17.199
I DON'T BELIEVE THAT THE
03:11:17.265 --> 03:11:18.400
COMPLETELY FUNDED FROM THE
03:11:18.466 --> 03:11:21.002
OUTSET TO FORTY TWO BILLION OR
03:11:21.069 --> 03:11:22.270
THIRTY FIVE BILLION OR WHATEVER
03:11:22.337 --> 03:11:22.938
IT MAY HAVE BEEN AFFECTED YOUR
03:11:23.004 --> 03:11:24.206
POINT TO THAT POINT I DON'T
03:11:24.272 --> 03:11:25.240
THINK THE CAP THE CALIFORNIA
03:11:25.307 --> 03:11:26.975
PUBLIC KNEW THAT WAS EVEN THE
03:11:27.042 --> 03:11:29.711
CASE EITHER.
03:11:29.778 --> 03:11:30.912
DID YOU DID WHEN YOU WENT TO THE
03:11:30.979 --> 03:11:32.948
CALIFORNIA PUBLIC AND SAID WE
03:11:33.014 --> 03:11:34.082
WANT YOU TO BOND FOR A HIGH
03:11:34.149 --> 03:11:35.717
SPEED RAIL SYSTEM FOR SOMETHING
03:11:35.784 --> 03:11:37.185
THAT WON'T COVER THE COSTS OF
03:11:37.252 --> 03:11:39.120
THE WHOLE PROJECT.
03:11:39.187 --> 03:11:41.790
DID ANYONE EVER SAY THAT.
03:11:41.857 --> 03:11:43.525
IT WAS BEFORE MY TIME I REALLY
03:11:43.592 --> 03:11:45.660
CAN'T ANSWER THE QUESTION CELL I
03:11:45.727 --> 03:11:47.195
I JUST LIKE THIS IS I MEAN I I
03:11:47.262 --> 03:11:47.896
KNOW.
03:11:47.963 --> 03:11:48.997
IT'S YOUR FIRST TIME TESTIFYING
03:11:49.064 --> 03:11:49.631
AND I I HATE TO BE A LITTLE HARD
03:11:49.698 --> 03:11:51.499
ON YOU BUT I MEAN THESE ARE REAL
03:11:51.566 --> 03:11:52.901
CONCERNS.
03:11:52.968 --> 03:11:54.870
AND AND AS THE AS US WHO HAVE
03:11:54.936 --> 03:11:56.037
BEEN ELECTED TO BE STEWARDS AT
03:11:56.104 --> 03:11:57.739
CALIFORNIA TAX DOLLAR.
03:11:57.806 --> 03:11:59.674
WE HAVE TO ASK THESE HARD
03:11:59.741 --> 03:12:01.743
QUESTIONS BECAUSE WE THE PEOPLE
03:12:01.810 --> 03:12:02.844
LOAN AS THE POWER FOR TWO YEARS
03:12:02.911 --> 03:12:03.979
AND THIS IS A VERY IMPORTANT
03:12:04.045 --> 03:12:05.513
DECISION WE HAVE TO MAKE SO I
03:12:05.580 --> 03:12:06.147
THANK YOU FOR YOUR TIME AND I
03:12:06.214 --> 03:12:07.716
APPRECIATE APPRECIATE THE
03:12:07.782 --> 03:12:09.751
QUESTIONS THINKING.
03:12:09.818 --> 03:12:10.919
TWICE YOUR OFFICE THANK YOU
03:12:10.986 --> 03:12:11.786
MISTER CHAIR MISTER RICHARDS
03:12:11.853 --> 03:12:13.521
MISTER HEDGES THANK YOU FOR YOUR
03:12:13.588 --> 03:12:14.923
TESTIMONY.
03:12:14.990 --> 03:12:18.560
I CAN TELL YOU IS A LAWYER I GET
03:12:18.627 --> 03:12:20.595
CAUGHT MOST.
03:12:20.662 --> 03:12:21.396
TO I ALSO WANT TO TELL YOU THANK
03:12:21.463 --> 03:12:22.597
YOU VERY MUCH FOR UNDERSTANDING
03:12:22.664 --> 03:12:23.632
AND SO I ALSO WANT TO TELL YOU
03:12:23.698 --> 03:12:23.932
THAT -- YOU
03:12:23.999 --> 03:12:24.499
KNOW PERSONALLY I HAVE THE
03:12:24.566 --> 03:12:27.002
HIGHEST RESPECT FOR BRIAN KELLY.
03:12:27.068 --> 03:12:28.236
DID SOME EXTRAORDINARY WORK IN
03:12:28.303 --> 03:12:29.905
HIS OTHER POSITIONS AROUND HERE
03:12:29.971 --> 03:12:31.473
AND YOU'RE LUCKY TO HAVE HIM WE
03:12:31.539 --> 03:12:33.808
ARE I HAVE A QUESTION I GUESS IS
03:12:33.875 --> 03:12:35.911
SORT OF A CONCERN YOU KNOW THE
03:12:35.977 --> 03:12:36.678
AUDIT REPORT.
03:12:36.745 --> 03:12:38.079
AND CERTAINLY THIS HEARINGS
03:12:38.146 --> 03:12:40.749
PROPERLY FOCUSED ON HAS BEEN THE
03:12:40.815 --> 03:12:43.652
DEFICIENCIES --
03:12:43.718 --> 03:12:44.986
IN THOSE AREAS THAT --
03:12:45.053 --> 03:12:47.389
IMPACTED PROJECT COMPLETION COST
03:12:47.455 --> 03:12:48.523
AND OF COURSE THE DELAYS HAVE
03:12:48.590 --> 03:12:50.258
BEEN SIGNIFICANT [inaudible]
03:12:50.325 --> 03:12:53.094
AND FROM THE PERSPECTIVE OF SOME
03:12:53.161 --> 03:12:55.497
OF US THE COST INCREASES OF BEEN
03:12:55.563 --> 03:12:57.299
BREATHTAKING.
03:12:57.365 --> 03:13:00.669
BUT I WANT TO STEP BACK AND AND
03:13:00.735 --> 03:13:03.171
AND ASK A QUESTION BUT FIRST.
03:13:03.238 --> 03:13:04.639
SET THE STAGE FOR MY QUESTION.
03:13:04.706 --> 03:13:05.907
YOU KNOW IT'S MY UNDERSTANDING
03:13:05.974 --> 03:13:07.409
THAT MODERN DAY HIGH SPEED RAIL
03:13:07.475 --> 03:13:09.177
PROBABLY DATES BACK TO THE JAPAN
03:13:09.244 --> 03:13:11.146
MAYBE IN NINETEEN SIXTY FOUR
03:13:11.212 --> 03:13:12.514
BEFORE THE OLYMPICS.
03:13:12.580 --> 03:13:14.082
AND THEN FOLLOWED BY ITALY AND
03:13:14.149 --> 03:13:15.617
FRANCE THAT'S ALMOST FIFTY YEARS
03:13:15.684 --> 03:13:17.152
AGO.
03:13:17.218 --> 03:13:18.653
AND IT'S ALSO MY UNDERSTANDING
03:13:18.720 --> 03:13:19.788
THAT AT LEAST SOME FORM OF A
03:13:19.854 --> 03:13:21.556
HIGH SPEED RAIL SYSTEM WAS
03:13:21.623 --> 03:13:22.958
OPERATIONAL IN GERMANY.
03:13:23.024 --> 03:13:24.826
AS EARLY AS NINETEEN THIRTY
03:13:24.893 --> 03:13:27.095
THREE MAYBE FROM THIRTY THREE TO
03:13:27.162 --> 03:13:27.729
THIRTY NINE AND THAT'S CERTAINLY
03:13:27.796 --> 03:13:30.065
OVER. EIGHTY YEARS AGO SO.
03:13:30.131 --> 03:13:32.100
THIS IS NOT A A NEW TECHNOLOGY
03:13:32.167 --> 03:13:34.502
AT LEAST IN ITS BASIC FORM.
03:13:34.569 --> 03:13:35.603
AND WHEN WE TALK ABOUT
03:13:35.670 --> 03:13:37.572
PROJECTIONS FOR COMPLETION OF
03:13:37.639 --> 03:13:42.310
PHASE ONE OF TWO THOUSAND THIRTY
03:13:42.377 --> 03:13:43.645
THREE MAYBE LATER MAYBE MUCH
03:13:43.712 --> 03:13:47.949
LATER MAYBE. TWENTY FIFTY GIVEN
03:13:48.016 --> 03:13:49.284
ALL THAT AND GIVEN THE
03:13:49.351 --> 03:13:51.252
EXTRAORDINARY SPEED WITH WHICH
03:13:51.319 --> 03:13:52.821
TECHNOLOGY IS CHANGING WITH
03:13:52.887 --> 03:13:54.489
RESPECT TO TRANSPORTATION IN THE
03:13:54.556 --> 03:13:57.325
TRANSPORTATION OF OF PEOPLE FROM
03:13:57.392 --> 03:13:58.827
ONE PLACE TO ANOTHER WHETHER
03:13:58.893 --> 03:13:59.961
WE'RE TALKING ABOUT A TON WAS
03:14:00.028 --> 03:14:00.996
VEHICLES --
03:14:01.062 --> 03:14:03.264
HYPERLOOP --
03:14:03.331 --> 03:14:05.166
TRANSPORT.
03:14:05.233 --> 03:14:06.701
I GUESS THIS IS MY QUESTION.
03:14:06.768 --> 03:14:08.169
HAS ANYONE INSIDE YOUR
03:14:08.236 --> 03:14:10.271
ORGANIZATION OR OUTSIDE YOUR
03:14:10.338 --> 03:14:12.640
ORGANIZATION --
03:14:12.707 --> 03:14:13.408
TO YOUR KNOWLEDGE TAKEN A STEP
03:14:13.475 --> 03:14:15.143
BACK CLIMBED UP TO THIRTY
03:14:15.210 --> 03:14:15.844
THOUSAND FEET.
03:14:15.910 --> 03:14:18.013
AND REASSESS THE CONTINUED
03:14:18.079 --> 03:14:20.615
VIABILITY OF A OF THE CONCEPT OF
03:14:20.682 --> 03:14:22.083
A HIGH SPEED RAIL SYSTEM.
03:14:22.150 --> 03:14:26.121
IN TWO THOUSAND THIRTY THREE OR
03:14:26.187 --> 03:14:26.688
TWO THOUSAND FIFTY OR BEYOND
03:14:26.755 --> 03:14:28.656
BECAUSE SEVENTY SEVEN BILLION
03:14:28.723 --> 03:14:30.191
DOLLARS IS A LOT OF MONEY AND
03:14:30.258 --> 03:14:31.593
IT'S PROBABLY NOT GOING TO BE
03:14:31.659 --> 03:14:33.328
THE END OF THE QUESTION BECAUSE
03:14:33.395 --> 03:14:36.031
WE GOT A FACE.
03:14:36.097 --> 03:14:37.565
TO OR ARE WE SIMPLY BENT ON AUTO
03:14:37.632 --> 03:14:38.700
PILOT SENSE.
03:14:38.767 --> 03:14:40.001
NOT A CRITICISM BUT SIMPLY BEEN
03:14:40.068 --> 03:14:42.904
ON AUTO PILOT SINCE NINETEEN
03:14:42.971 --> 03:14:43.505
NINETY SIX OR TWO THOUSAND OR
03:14:43.571 --> 03:14:45.140
EVEN. TWO THOUSAND AND EIGHT
03:14:45.206 --> 03:14:48.443
WITH RESPECT.
03:14:48.510 --> 03:14:50.478
WELL IN THE AUTO PILOT NEVER GOT
03:14:50.545 --> 03:14:53.381
ENGAGED ON THIS FORTUNATELY BUT
03:14:53.448 --> 03:14:56.551
WE PAID WE PAY ATTENTION.
03:14:56.618 --> 03:14:58.353
TO WHAT APPEARS TO BE GOING ON
03:14:58.420 --> 03:15:00.455
AT LEAST --
03:15:00.522 --> 03:15:01.723
BEING CONSIDERED TO HAVE
03:15:01.790 --> 03:15:03.191
POTENTIALLY DEVELOP AND THAT
03:15:03.258 --> 03:15:04.826
SORT OF THING WHAT WE ALSO
03:15:04.893 --> 03:15:06.561
NOTICES THAT WHAT IS ACTUALLY
03:15:06.628 --> 03:15:08.863
BEING BUILT ALL AROUND THE WORLD.
03:15:08.930 --> 03:15:11.232
CONTINUES TO BE HIGH SPEED RAIL.
03:15:11.299 --> 03:15:13.301
IT'S A PROVEN AT TRANSPORTATION
03:15:13.368 --> 03:15:16.504
ALTERNATIVE AT SPEECH THAT ARE --
03:15:16.571 --> 03:15:18.073
GREATER THAN ANY OTHER.
03:15:18.139 --> 03:15:20.341
FORM OF SURFACE TRANSPORTATION
03:15:20.408 --> 03:15:21.609
AND WHILE WE READ ALSO ABOUT
03:15:21.676 --> 03:15:23.178
HYPERLOOP AND MAGLEV AND ALL
03:15:23.244 --> 03:15:25.814
THAT SORT OF THING --
03:15:25.880 --> 03:15:28.349
WE DON'T WE DON'T GET IS SICK WE
03:15:28.416 --> 03:15:30.685
DON'T SIMPLY --
03:15:30.752 --> 03:15:32.053
TAKE A POSITION THAT IT'S IT IT
03:15:32.120 --> 03:15:34.122
MAY NOT BE VIABLE AT SOME POINT
03:15:34.189 --> 03:15:35.623
IN THE FUTURE BUT WHAT WE'RE
03:15:35.690 --> 03:15:37.292
DOING IS WE DON'T SEE IN THE
03:15:37.358 --> 03:15:38.726
NEAR TERM --
03:15:38.793 --> 03:15:42.397
OR DURING DURING THE LIFE OF A
03:15:42.464 --> 03:15:43.865
HIGH SPEED RAIL SYSTEM THAT'S
03:15:43.932 --> 03:15:45.834
JUST BEING BUILT THAT IT IS
03:15:45.900 --> 03:15:47.469
NECESSARILY GOING TO BE SURE
03:15:47.535 --> 03:15:49.337
PASSED BY OTHER FORMS OF SURFACE
03:15:49.404 --> 03:15:50.371
TRANSPORTATION.
03:15:50.438 --> 03:15:53.541
IT CERTAINLY LOOKS AS THOUGH IT
03:15:53.608 --> 03:15:56.978
MEETS PERFECT ROUGHLY GEOGRAPHY
03:15:57.045 --> 03:15:58.680
GEOGRAPHY SIMILAR TO WHAT WE'VE
03:15:58.746 --> 03:16:00.081
GOT HERE IN CALIFORNIA WELL I
03:16:00.148 --> 03:16:01.883
UNDERSTAND THAT'S THE HIGH SPEED
03:16:01.950 --> 03:16:03.218
REAL STORIES YOU IN THE PORTS
03:16:03.284 --> 03:16:04.252
YOU AND I'M SURE YOU TALK ABOUT
03:16:04.319 --> 03:16:04.786
IT.
03:16:04.853 --> 03:16:06.221
BUT HAS THERE BEEN A TIGER TEAM
03:16:06.287 --> 03:16:08.990
PUT TOGETHER OR PROJECT TEAM.
03:16:09.057 --> 03:16:10.625
SOME OTHER GROUP TO ACTUALLY
03:16:10.692 --> 03:16:13.528
STUDY THE IMPACT OF EXTRA.
03:16:13.595 --> 03:16:15.497
A CHANGING STRUCTURE CHANGES IN
03:16:15.563 --> 03:16:17.899
TECHNOLOGY JUST IN THE SIX YEARS
03:16:17.966 --> 03:16:19.901
THAT I'VE BEEN HERE TO COMPARE
03:16:19.968 --> 03:16:21.603
THAT TO THE BUSINESS PLAN THAT
03:16:21.669 --> 03:16:22.303
WAS.
03:16:22.370 --> 03:16:24.706
TO BE STARTED TO PUT TOGETHER IN
03:16:24.772 --> 03:16:26.374
NINETEEN NINETY SIX AND TWO
03:16:26.441 --> 03:16:28.610
THOUSAND THAT'S NINETY SIX IS A
03:16:28.676 --> 03:16:29.978
LONG TIME IN TWO THOUSAND IS
03:16:30.044 --> 03:16:31.446
RAPIDLY APPROACHING NINETEEN
03:16:31.513 --> 03:16:33.348
YEARS AND I'M JUST WONDERING IF
03:16:33.414 --> 03:16:34.983
ANYBODY IS REALLY TAKING THIS
03:16:35.049 --> 03:16:37.252
THING DOWN TO THE TO THE ROOTS
03:16:37.318 --> 03:16:39.420
AND AND TAKEN A LOOK AT IT.
03:16:39.487 --> 03:16:41.689
OR ARE WE SIMPLY MOVING AHEAD
03:16:41.756 --> 03:16:43.191
BECAUSE WE'VE SPENT.
03:16:43.258 --> 03:16:44.993
WHATEVER IT IS TWO POINT SIX
03:16:45.059 --> 03:16:46.561
BILLION DOLLARS OF THREE POINT
03:16:46.628 --> 03:16:47.896
FIVE BILLION IN WE NEED TO KEEP
03:16:47.962 --> 03:16:49.464
MARCHING HONOR WE HAVE.
03:16:49.531 --> 03:16:51.199
TO CONSIDER WHAT THE OFFRAMP IS
03:16:51.266 --> 03:16:52.534
OR HOW WE PAY IT BACK.
03:16:52.600 --> 03:16:54.068
IS THAT A FAIR QUESTION I THINK
03:16:54.135 --> 03:16:55.637
IT'S A FAIR QUESTION --
03:16:55.703 --> 03:16:58.139
AND I AM NOT AWARE OF IT AT THE
03:16:58.206 --> 03:16:59.908
TIGER TEAM THAT HAVING BEEN
03:16:59.974 --> 03:17:01.242
FORMED --
03:17:01.309 --> 03:17:02.610
WHAT I HAVE THOUGHT ABOUT WITH
03:17:02.677 --> 03:17:04.312
REGARDS TO THIS IS TO WHATEVER
03:17:04.379 --> 03:17:07.248
THE FORMER TRANSPORTATION MAY BE --
03:17:07.315 --> 03:17:09.450
WITH WHATEVER HOWEVER TECHNOLOGY
03:17:09.517 --> 03:17:11.586
CHANGES --
03:17:11.653 --> 03:17:13.922
ONE THING THAT IS A ASSET THAT
03:17:13.988 --> 03:17:15.623
SURVIVES ALL OF THAT IS THE
03:17:15.690 --> 03:17:16.925
RIGHT OF WAY.
03:17:16.991 --> 03:17:18.660
THAT THE STATE OF CALIFORNIA --
03:17:18.726 --> 03:17:21.062
AND IT HAS IN THE TAXPAYERS HAVE
03:17:21.129 --> 03:17:22.697
PAID -- FOR
03:17:22.764 --> 03:17:24.032
WHETHER THAT RIGHT OF WAY AT
03:17:24.098 --> 03:17:26.701
SOME POINT MAY SUPPORT MAG LEV
03:17:26.768 --> 03:17:28.803
OR HYPERLOOP OR SOME OTHER FORM
03:17:28.870 --> 03:17:30.271
OF TRANSPORTATION.
03:17:30.338 --> 03:17:31.906
I REALLY DON'T KNOW.
03:17:31.973 --> 03:17:33.775
BUT CERTAINLY IT'S AN ASSET THAT
03:17:33.841 --> 03:17:35.109
IS NOT A LOST ASSET FOR THE
03:17:35.176 --> 03:17:37.078
TAXPAYERS OF THE STATE OF
03:17:37.145 --> 03:17:38.513
CALIFORNIA.
03:17:38.580 --> 03:17:39.747
WELL THANK YOU I DO THINK YOU
03:17:39.814 --> 03:17:41.316
KNOW WHOEVER'S LISTENING I DO
03:17:41.382 --> 03:17:43.952
THINK IT'S TIME --
03:17:44.018 --> 03:17:45.019
TO MAY BE.
03:17:45.086 --> 03:17:46.321
AT THE SAME TIME THAT YOU PUT
03:17:46.387 --> 03:17:48.690
CONTINUE TO PROCEED FORWARD
03:17:48.756 --> 03:17:49.824
MARCHING ON MAYBE BUT THAT.
03:17:49.891 --> 03:17:52.560
PERHAPS IT'S A TIME FOR SOMEBODY.
03:17:52.627 --> 03:17:54.295
TO TO TAKE A LOOK AT THIS IN.
03:17:54.362 --> 03:17:55.630
AND REALLY.
03:17:55.697 --> 03:17:56.698
THINK IN TERMS OF FUTURES YOU
03:17:56.764 --> 03:17:59.500
KNOW ORGANISER PRIVATE --
03:17:59.567 --> 03:18:00.802
FORMING FUTURES GROUPS NOW AND
03:18:00.868 --> 03:18:02.303
IT'S NOT --
03:18:02.370 --> 03:18:03.705
WITHOUT GOOD REASON AND MAYBE WE
03:18:03.771 --> 03:18:05.373
OUGHT TO DO THE SAME THING BUT
03:18:05.440 --> 03:18:06.541
THANK YOU FOR YOUR TESTIMONY
03:18:06.608 --> 03:18:08.343
SHOWS LIKE REFERENCE CHECK YOU
03:18:08.409 --> 03:18:09.043
FOR THE ADVICE [inaudible]
03:18:09.110 --> 03:18:13.248
SARAH -- THE
03:18:13.314 --> 03:18:16.050
FIRST TO COMMENT THAT --
03:18:16.117 --> 03:18:17.352
JUST REFLECTING ON SOME OF YOUR
03:18:17.418 --> 03:18:21.723
STATEMENTS THE I THINK IT'S TIME
03:18:21.789 --> 03:18:24.859
FOR THE NATIONAL LEADERS. TO
03:18:24.926 --> 03:18:27.095
FOLLOW CALIFORNIA'S LEAD.
03:18:27.161 --> 03:18:29.397
AND INVEST IN INFRASTRUCTURE.
03:18:29.464 --> 03:18:30.865
LET'S WAKE UP AND SMELL THE
03:18:30.932 --> 03:18:32.667
COFFEE FOLKS WE NEED MORE
03:18:32.734 --> 03:18:34.135
INFRASTRUCTURE IN THE UNITED
03:18:34.202 --> 03:18:35.136
STATES.
03:18:35.203 --> 03:18:36.404
IT'S TIME FOR THEM TO COME
03:18:36.471 --> 03:18:39.474
TOGETHER IN A BIPARTISAN WAY.
03:18:39.540 --> 03:18:42.644
AND SMELL THE COFFEE PUT
03:18:42.710 --> 03:18:44.445
TOGETHER AN INFRASTRUCTURE BACK.
03:18:44.512 --> 03:18:45.280
IN -- WE ARE
03:18:45.346 --> 03:18:46.781
WE ARE ALL WORK AS A BIPARTISAN
03:18:46.848 --> 03:18:49.250
TEAM IN CALIFORNIA. TO OUR HOUSE
03:18:49.317 --> 03:18:52.086
OR LEGISLATIVE DELEGATION. TO
03:18:52.153 --> 03:18:53.321
HELP CALIFORNIA AND THE REST OF
03:18:53.388 --> 03:18:55.023
THE COUNTRY --
03:18:55.089 --> 03:18:57.892
SURVIVE ECONOMICALLY BY CONTINUE
03:18:57.959 --> 03:18:59.827
TO INVEST IN INFRASTRUCTURE
03:18:59.894 --> 03:19:00.962
WHICH HASN'T BEEN DONE AT THE
03:19:01.029 --> 03:19:02.997
NATIONAL LEVEL SINCE THE LATE
03:19:03.064 --> 03:19:05.266
EIGHTIES.
03:19:05.333 --> 03:19:06.434
THE LATE EIGHTIES HAVEN'T THEY
03:19:06.501 --> 03:19:08.136
HAVEN'T DONE IT.
03:19:08.202 --> 03:19:09.771
SO I TAKE I THINK IT'S TIME --
03:19:09.837 --> 03:19:12.173
FOR SOME --
03:19:12.240 --> 03:19:14.208
STRONG EFFORTS AT THIS POINT I
03:19:14.275 --> 03:19:15.476
HOPE I CAN GET THE MOMENTUM.
03:19:15.543 --> 03:19:16.878
GOING ON THAT I THINK
03:19:16.944 --> 03:19:18.913
CALIFORNIA'S VOTERS DIRECTED US
03:19:18.980 --> 03:19:20.782
IN AND GAVE US SOME DIRECTION
03:19:20.848 --> 03:19:22.317
THAT THEY WANT SO MOMENTUM.
03:19:22.383 --> 03:19:24.552
IN THIS AREA SO I HAD A QUESTION
03:19:24.619 --> 03:19:26.688
FOR YOU --
03:19:26.754 --> 03:19:28.923
MISTER VICE CHAIRMAN --
03:19:28.990 --> 03:19:31.059
YOUR FROM FROZEN CORRECT YES SIR --
03:19:31.125 --> 03:19:33.227
CAN YOU TALK ABOUT --
03:19:33.294 --> 03:19:34.762
BECAUSE PER THE AUDIT --
03:19:34.829 --> 03:19:36.130
THAT KIND OF WASN'T COVERED
03:19:36.197 --> 03:19:37.098
FULLY.
03:19:37.165 --> 03:19:40.401
WAS THE ECONOMIC --
03:19:40.468 --> 03:19:42.003
IMPACT [inaudible]
03:19:42.070 --> 03:19:47.742
AND I I REALLY WANT TO SEE A
03:19:47.809 --> 03:19:49.877
CONNECTION BETWEEN SILICON
03:19:49.944 --> 03:19:52.180
VALLEY AND FRESNO AND IS IN THE
03:19:52.246 --> 03:19:53.881
BAY AREA I THINK IT WOULD HAVE
03:19:53.948 --> 03:19:54.749
AN ECONOMIC.
03:19:54.816 --> 03:19:58.286
STRONG ECONOMIC IMPACT.
03:19:58.353 --> 03:19:59.187
BOTH WAYS SO I MEAN.
03:19:59.253 --> 03:20:00.321
YOU HAVE ONE OF THE GREATEST
03:20:00.388 --> 03:20:02.557
UNIVERSITIES IN THE IN THE STATE
03:20:02.623 --> 03:20:04.192
TO ABOUT IT HAS ONE OF THE BEST
03:20:04.258 --> 03:20:05.560
ENGINEERING SCHOOLS COMPUTER
03:20:05.626 --> 03:20:08.896
SCIENCE --
03:20:08.963 --> 03:20:10.698
UNKNOWN.
03:20:10.765 --> 03:20:12.834
BECAUSE PRESS OF ITS ISOLATION
03:20:12.900 --> 03:20:14.102
FROM OTHER PARTS OF THE STATE
03:20:14.168 --> 03:20:15.470
BUT UNKNOWN.
03:20:15.536 --> 03:20:18.806
FRESNO STATE HAS A WONDERFUL --
03:20:18.873 --> 03:20:20.708
HIGHER EDUCATION SYSTEM THERE
03:20:20.775 --> 03:20:21.008
[inaudible]
03:20:21.075 --> 03:20:24.512
AND I KNOW THAT PEOPLE IN
03:20:24.579 --> 03:20:26.047
SILICON VALLEY WANT TO CONNECT
03:20:26.114 --> 03:20:26.881
WITH.
03:20:26.948 --> 03:20:30.017
FRESNO BECAUSE QUITE FRANKLY.
03:20:30.084 --> 03:20:31.953
PEOPLE ARE ALMOST LIVING IN
03:20:32.019 --> 03:20:34.021
FRESNO IN COMMUTING TO SILICON
03:20:34.088 --> 03:20:36.357
VALLEY AS WE SPEAK.
03:20:36.424 --> 03:20:37.625
AND WE WOULD LIKE TO C. OF SOME
03:20:37.692 --> 03:20:41.028
OF THE COMMUTERS MAYBE GO IN THE
03:20:41.095 --> 03:20:42.663
OPPOSITE DIRECTION.
03:20:42.730 --> 03:20:44.465
OKAY IF WE HAD.
03:20:44.532 --> 03:20:46.033
SOME OF THE COMPANIES MAKE
03:20:46.100 --> 03:20:47.001
INVESTMENTS.
03:20:47.068 --> 03:20:48.002
COULD YOU TALK ABOUT THE
03:20:48.069 --> 03:20:50.938
ECONOMIC POTENTIAL IMPACT. FOR
03:20:51.005 --> 03:20:53.975
THE FRESNO METROPOLITAN AREA OF
03:20:54.041 --> 03:20:55.343
THE HIGH SPEED RAIL ON THAT HAVE
03:20:55.410 --> 03:20:57.445
YOU KNOW WE DID STUDY THAT FULLY
03:20:57.512 --> 03:20:58.246
IN THE AUDIT.
03:20:58.312 --> 03:21:00.648
BUT THAT WAS A DIRECTIVE OF THE
03:21:00.715 --> 03:21:04.719
AUDIT. TO SO COULD YOU IT CAN
03:21:04.786 --> 03:21:07.522
YOU OF FROM YOUR EXPERIENCE.
03:21:07.588 --> 03:21:09.023
AS A BUSINESSMAN AND FRESNO GIVE
03:21:09.090 --> 03:21:10.725
US SOME PERSPECTIVE.
03:21:10.792 --> 03:21:12.293
YEAH I'D LIKE TO DO THAT THANK
03:21:12.360 --> 03:21:14.996
YOU SENATOR DEAL OR I'M SORRY I
03:21:15.062 --> 03:21:16.597
KEEP DOING ITS --
03:21:16.664 --> 03:21:20.835
SENATOR BILL --
03:21:20.902 --> 03:21:23.905
JUST A COUPLE OF OF OF QUICK
03:21:23.971 --> 03:21:24.872
FAXES YOU.
03:21:24.939 --> 03:21:26.574
OFTENTIMES PEOPLE WHO AREN'T
03:21:26.641 --> 03:21:27.175
FROM THE CENTRAL VALLEY DON'T
03:21:27.241 --> 03:21:28.242
REALLY.
03:21:28.309 --> 03:21:29.677
REALIZE --
03:21:29.744 --> 03:21:31.479
WHAT THE POPULATION IS THERE
03:21:31.546 --> 03:21:33.181
WE'VE GOT IN A IN THE EIGHT
03:21:33.247 --> 03:21:34.949
COUNTY AREA WE'VE GOT ABOUT FOUR
03:21:35.016 --> 03:21:36.617
POINT TWO BILLION ARE SKEWS ME
03:21:36.684 --> 03:21:38.052
MILLION PEOPLE RIGHT NOW?
03:21:38.119 --> 03:21:39.887
BY TWO THOUSAND AND SIXTY IS IT
03:21:39.954 --> 03:21:44.392
IT'LL INCREASED BY FIFTY BY 50%
03:21:44.459 --> 03:21:45.426
UP TO ABOUT SIX AND A HALF.
03:21:45.493 --> 03:21:48.229
IN TERMS OF ECONOMIC IMPACTS --
03:21:48.296 --> 03:21:50.097
BOTH STATEWIDE AND FOR THE
03:21:50.164 --> 03:21:50.765
CENTRAL VALLEY THEN I I
03:21:50.832 --> 03:21:52.200
APPRECIATE THE OPPORTUNITY TO
03:21:52.266 --> 03:21:54.235
SAY WHAT I THINK IT'S DOING FOR
03:21:54.302 --> 03:21:56.971
THE FRESNO COMMUNITY --
03:21:57.038 --> 03:21:58.439
FOR THE REPORTING PERIOD --
03:21:58.506 --> 03:22:03.177
ENDED DECEMBER OF TWO THOUSAND
03:22:03.244 --> 03:22:04.712
SEVENTEEN IT THE STATE WIDE IT'S
03:22:04.779 --> 03:22:06.180
REPRESENTED INVESTMENTS OF FOUR
03:22:06.247 --> 03:22:09.617
POINT ONE FIVE BILLION DOLLARS.
03:22:09.684 --> 03:22:10.985
IN EMPLOYMENT STATEWIDE.
03:22:11.052 --> 03:22:13.688
THERE'S BEEN APPROXIMATELY
03:22:13.754 --> 03:22:14.288
THIRTY SIX THOUSAND JOB YEARS
03:22:14.355 --> 03:22:16.123
CREATED.
03:22:16.190 --> 03:22:17.558
AND THE ECONOMIC IMPACT PACKED
03:22:17.625 --> 03:22:19.427
ACROSS THE STATE ABOUT SIX POINT
03:22:19.494 --> 03:22:21.329
FOUR BILLION.
03:22:21.395 --> 03:22:24.198
IN THE CENTRAL VALLEY ALONE --
03:22:24.265 --> 03:22:26.200
OF THAT THIRTY SIX THOUSAND JOB
03:22:26.267 --> 03:22:29.804
YEARS. FOURTEEN THOUSAND ONE
03:22:29.871 --> 03:22:30.605
HUNDRED OF THEM ARE RIGHT IN THE
03:22:30.671 --> 03:22:31.706
CENTRAL VALLEY IN AND AROUND
03:22:31.772 --> 03:22:34.141
FRESNO.
03:22:34.208 --> 03:22:36.244
AND THE ECONOMIC IMPACT ALREADY
03:22:36.310 --> 03:22:37.678
HAS BEEN OVER TWO AND A HALF
03:22:37.745 --> 03:22:39.480
BILLION DOLLARS AND THAT'S GOING
03:22:39.547 --> 03:22:40.047
TO GROW DRAMATICALLY AS WE
03:22:40.114 --> 03:22:41.449
FINISH.
03:22:41.516 --> 03:22:43.684
THIS HUNDRED NINETEEN MILES.
03:22:43.751 --> 03:22:44.919
FROM THE PERSPECTIVE OF A
03:22:44.986 --> 03:22:47.922
COMMUNITY --
03:22:47.989 --> 03:22:49.490
THAT -- I A
03:22:49.557 --> 03:22:51.526
ONLY HOPE THAT EVERYBODY HAS AN
03:22:51.592 --> 03:22:53.928
OPPORTUNITY TO HAVE GONE THERE
03:22:53.995 --> 03:22:55.730
ARE MORE THAN ONCE HOPEFULLY AND
03:22:55.796 --> 03:22:56.931
GOT TO KNOW IT A LITTLE BIT I'VE
03:22:56.998 --> 03:22:58.232
BEEN THERE.
03:22:58.299 --> 03:23:00.535
FORTUNATELY.
03:23:00.601 --> 03:23:03.271
EVERY TIME SOUNDS A STATE POLICE
03:23:03.337 --> 03:23:07.675
PRESENCE AT THE BULLDOGS WENT
03:23:07.742 --> 03:23:09.877
HOME AND YOU KNOW TO BE HONEST
03:23:09.944 --> 03:23:13.347
I'M SORRY BUT YOU KNOW WE JUST
03:23:13.414 --> 03:23:14.882
CAN'T BEAT THAT --
03:23:14.949 --> 03:23:16.217
SPECIALLY IN --
03:23:16.284 --> 03:23:20.288
THE BULLDOG I MEAN IT'S JUST.
03:23:20.354 --> 03:23:22.023
WELL WE'VE GOT A GREAT SENSE OF
03:23:22.089 --> 03:23:24.358
YOU KNOW --
03:23:24.425 --> 03:23:25.660
THE THE YOU KNOW FOR THE CENTRAL
03:23:25.726 --> 03:23:25.893
VALLEY.
03:23:25.960 --> 03:23:27.194
HIGH SPEED RAIL REPRESENTS I I'M
03:23:27.261 --> 03:23:29.697
NOT FROM FRESNO I MOVE THERE --
03:23:29.764 --> 03:23:30.898
AFTER AFTER COLLEGE I THINK
03:23:30.965 --> 03:23:31.966
THINKING I'D BE THERE FOR THREE
03:23:32.033 --> 03:23:33.100
OR FOUR YEARS AND THEN MOVE BACK
03:23:33.167 --> 03:23:34.602
OVER THE COAST WHICH DIDN'T
03:23:34.669 --> 03:23:36.170
HAPPEN BECAUSE YOU END UP
03:23:36.237 --> 03:23:37.672
STAYING WHERE YOUR FRIENDS ARE.
03:23:37.738 --> 03:23:40.408
AND I MADE A LOT OF FRIENDS HERE.
03:23:40.474 --> 03:23:42.276
AND I'VE STRUGGLED OVER THE
03:23:42.343 --> 03:23:43.678
YEARS THINKING WAS IT REALLY
03:23:43.744 --> 03:23:44.812
WISE TO STAY HERE BECAUSE I IT
03:23:44.879 --> 03:23:46.714
EARLY ON MY REACTION TO FRESNO
03:23:46.781 --> 03:23:48.349
I'VE NEVER.
03:23:48.416 --> 03:23:49.317
SEEN A COMMUNITY THAT IT
03:23:49.383 --> 03:23:50.751
APPEARED TO HAVE SUCH A LOW SELF
03:23:50.818 --> 03:23:52.286
ESTEEM.
03:23:52.353 --> 03:23:54.055
AND IT REALLY WAS IT WAS REALLY
03:23:54.121 --> 03:23:55.489
ALARMING --
03:23:55.556 --> 03:23:58.259
BUT WHAT I A RECOGNIZED OVER THE
03:23:58.326 --> 03:24:00.494
YEARS THIS LOW ESTEEM WAS THE
03:24:00.561 --> 03:24:03.531
RESULT OF A LACK OF OPPORTUNITY
03:24:03.598 --> 03:24:03.831
[inaudible]
03:24:03.898 --> 03:24:06.567
AND THERE'S A PERCEPTION IN THE
03:24:06.634 --> 03:24:08.235
VALLEY THAT WHEN THINGS HAPPEN
03:24:08.302 --> 03:24:09.537
IN THIS STATE.
03:24:09.604 --> 03:24:10.871
THEY NEVER FIND THEIR WAY OUT OF
03:24:10.938 --> 03:24:12.340
THE BAY AREA AND THEY NEVER FIND
03:24:12.406 --> 03:24:13.240
THEIR WAY OUT OF SOUTHERN
03:24:13.307 --> 03:24:14.942
CALIFORNIA SO SITTING IN A
03:24:15.009 --> 03:24:16.310
POSITION LIKE THIS WHERE I
03:24:16.377 --> 03:24:17.912
REALLY REPRESENT THE INTEREST OF
03:24:17.979 --> 03:24:19.614
THE STATE OF CALIFORNIA.
03:24:19.680 --> 03:24:22.083
I TRIED AND I TRY TO MONITOR HOW
03:24:22.149 --> 03:24:23.651
I REALLY FEEL ABOUT.
03:24:23.718 --> 03:24:25.519
MY JOB BUT WHEN I GET THE
03:24:25.586 --> 03:24:27.321
OPPORTUNITY TO THINK ABOUT WHAT
03:24:27.388 --> 03:24:28.155
IS IT DOING FOR CENTRAL
03:24:28.222 --> 03:24:32.360
CALIFORNIA IT'S UNBELIEVABLE --
03:24:32.426 --> 03:24:35.329
WE HAVE GENERATED THOSE JOBS IN
03:24:35.396 --> 03:24:37.732
SOME PART WITH PEOPLE WHO HAVE
03:24:37.798 --> 03:24:39.066
BEEN UNEMPLOYED FOR YEARS.
03:24:39.133 --> 03:24:42.470
WE HAVE BEEN THROUGH A THE GRANT
03:24:42.536 --> 03:24:44.105
THAT THAT OUR WORKFORCE
03:24:44.171 --> 03:24:45.740
INVESTMENT BOARD WHEN I WAS THE
03:24:45.806 --> 03:24:46.707
CHAIR OFTHAT.
03:24:46.774 --> 03:24:50.011
RECEIVED FROM THE GOVERNOR A
03:24:50.077 --> 03:24:51.078
HALF DOLLARS IT DIDN'T SOUND
03:24:51.145 --> 03:24:52.346
LIKE I'M ON A LOT OF MONEY BUT
03:24:52.413 --> 03:24:54.882
WITH THAT MONEY DID IS IT WENT.
03:24:54.949 --> 03:24:56.617
IT WENT TO SUPPORTING COHORTS
03:24:56.684 --> 03:24:57.718
FOR TRAINING.
03:24:57.785 --> 03:24:59.754
AND THE INTERESTING THING IS
03:24:59.820 --> 03:25:01.489
THESE PEOPLE GOING THROUGH THOSE
03:25:01.555 --> 03:25:03.557
CORE HOOKED CO WORDS ARE GETTING
03:25:03.624 --> 03:25:04.592
JOBS.
03:25:04.659 --> 03:25:05.793
THAT DIDN'T HAPPEN WITHOUT HIGH
03:25:05.860 --> 03:25:07.328
SPEED RAIL AND AS YOU MENTIONED
03:25:07.395 --> 03:25:08.929
EDUCATION.
03:25:08.996 --> 03:25:11.132
UP AND DOWN THE VALLEY CAL STATE
03:25:11.198 --> 03:25:13.267
BAKERSFIELD FRESNO STATE UC
03:25:13.334 --> 03:25:13.901
MERCED --
03:25:13.968 --> 03:25:15.369
NOW SAY THOSE THREE BECAUSE
03:25:15.436 --> 03:25:17.004
THEY'RE ALL PUBLIC INSTITUTIONS
03:25:17.071 --> 03:25:19.740
I'M NOT QUITE IS AWARE OF OF
03:25:19.807 --> 03:25:21.075
WHAT TO DEPRIVE ONES ARE BUT
03:25:21.142 --> 03:25:22.576
THEY HAVE THEY HAVE MEANT
03:25:22.643 --> 03:25:23.811
EMBRACED.
03:25:23.878 --> 03:25:26.113
HIGH SPEED RAIL AND ESTABLISH
03:25:26.180 --> 03:25:27.415
PROGRAMS.
03:25:27.481 --> 03:25:30.384
FOCUSED ON ENGINEERING IN FOR
03:25:30.451 --> 03:25:32.053
THE DEVELOPMENT AND OPERATION OF
03:25:32.119 --> 03:25:33.187
HIGH SPEED RAIL.
03:25:33.254 --> 03:25:36.857
AND A I IN THE AREAS OF
03:25:36.924 --> 03:25:37.925
CONSTRUCTION OF HIGH SPEED RAIL.
03:25:37.992 --> 03:25:39.860
THE SECONDARY AND TERTIARY
03:25:39.927 --> 03:25:41.529
BENEFITS FROM THESE JOBS NOT
03:25:41.595 --> 03:25:43.531
ONLY PUTTING PEOPLE TO WORK BUT
03:25:43.597 --> 03:25:44.965
THEM ADDITIONAL MONEY THAT IT'S
03:25:45.032 --> 03:25:46.967
BROAD AND TO THE COMMUNITY AS I
03:25:47.034 --> 03:25:48.369
MENTIONED --
03:25:48.436 --> 03:25:50.104
THE ECONOMIC IMPACT TWO AND A
03:25:50.171 --> 03:25:53.441
HALF BILLION DOLLARS UNHEARD OF
03:25:53.507 --> 03:25:54.975
OFTEN WHAT I THOUGHT.
03:25:55.042 --> 03:25:56.210
AND I THINK THIS ABOUT HIGH
03:25:56.277 --> 03:25:58.512
SPEED RAIL --
03:25:58.579 --> 03:26:00.114
A LOT YOU KNOW AND WE WERE
03:26:00.181 --> 03:26:01.949
FORTUNATE IN MY MIND TO GET THE
03:26:02.016 --> 03:26:03.751
OUR SONS AND WE HAD 17%
03:26:03.818 --> 03:26:05.786
UNEMPLOYMENT.
03:26:05.853 --> 03:26:07.988
BUT WHAT I SAID WHEN I'VE HAD AN
03:26:08.055 --> 03:26:10.791
OPPORTUNITY TO TALK TO GROUPS.
03:26:10.858 --> 03:26:11.459
IS THAT.
03:26:11.525 --> 03:26:13.928
THE NEAR TERM JOBS WHICH WERE ON
03:26:13.994 --> 03:26:16.063
THE CAKE.
03:26:16.130 --> 03:26:18.299
BECAUSE THE REAL OPPORTUNITY
03:26:18.365 --> 03:26:20.034
FROM BEING THE FIRST.
03:26:20.101 --> 03:26:21.302
AND THAT'S NOT JUST CENTRAL
03:26:21.368 --> 03:26:22.803
CALIFORNIA IT'S THE ENTIRE STATE
03:26:22.870 --> 03:26:25.639
OF CALIFORNIA WE ARE THE FIRST
03:26:25.706 --> 03:26:27.742
TO BE DOING THIS.
03:26:27.808 --> 03:26:29.877
NOT ONLY IN CALIFORNIA IN THE
03:26:29.944 --> 03:26:31.812
ENTIRE UNITED STATES AND IN FACT
03:26:31.879 --> 03:26:33.981
ALL OF NORTH AMERICA THERE IS
03:26:34.048 --> 03:26:35.549
NOT A HIGH SPEED RAIL.
03:26:35.616 --> 03:26:38.119
CONSTRUCTION PROJECT UNDER WAY
03:26:38.185 --> 03:26:39.987
IN ANY OF THAT AREA.
03:26:40.054 --> 03:26:41.655
THE REAL BENEFITS.
03:26:41.722 --> 03:26:43.557
THAT COME TO THIS STATE AND I
03:26:43.624 --> 03:26:45.159
BELIEVE STRONGLY FOR CENTRAL
03:26:45.226 --> 03:26:46.427
CALIFORNIA.
03:26:46.494 --> 03:26:49.063
IS THE EXPERIENCE THAT IS BEING
03:26:49.130 --> 03:26:52.032
GAINED BY ACTUALLY HAVING BEEN
03:26:52.099 --> 03:26:53.467
INVOLVED IN THIS DEVELOPMENT.
03:26:53.534 --> 03:26:55.970
AND ITS CONSTRUCTION AND ITS
03:26:56.036 --> 03:26:58.839
OPERATION WHEN WE GET STARTED.
03:26:58.906 --> 03:27:01.375
THE S. HIGH SPEED RAIL FINDS IT
03:27:01.442 --> 03:27:03.210
SWAY FROM STATE TO STATE TO
03:27:03.277 --> 03:27:04.879
STATE AND AS YOU PROBABLY ARE
03:27:04.945 --> 03:27:05.579
WHERE.
03:27:05.646 --> 03:27:06.747
I MEAN KEPT THEIR WORKING ON IT
03:27:06.814 --> 03:27:08.149
TEXAS THERE WORKING ON IT AGAIN
03:27:08.215 --> 03:27:10.618
I BELIEVE IN OHIO AND WISCONSIN.
03:27:10.684 --> 03:27:13.420
IN FLORIDA --
03:27:13.487 --> 03:27:15.689
WHEN LIKE CALIFORNIA HAS DONE SO
03:27:15.756 --> 03:27:18.292
WELL WHEN PEOPLE START LOOKING
03:27:18.359 --> 03:27:19.894
AT WHERE WHERE WE GONNA GET THE
03:27:19.960 --> 03:27:22.329
EXPERTISE? TO DEVELOPER BUILD
03:27:22.396 --> 03:27:24.865
HIGH SPEED RAIL THAT EXPERTISE
03:27:24.932 --> 03:27:27.301
IS GONNA COME FROM CALIFORNIA.
03:27:27.368 --> 03:27:28.502
WE'RE GONNA EXPORT THAT
03:27:28.569 --> 03:27:30.404
EXPERTISE TO THE OTHER STATES IN
03:27:30.471 --> 03:27:32.206
THESE COMPANIES THAT HAVE COME
03:27:32.273 --> 03:27:33.941
UP AND LEARN THE WAY.
03:27:34.008 --> 03:27:36.310
AND WE'VE GOT A LOT OF COMPANIES
03:27:36.377 --> 03:27:39.380
THAT ARE WITH SMALL COMPANIES --
03:27:39.446 --> 03:27:40.948
NOW DEVELOPING AND BUILDING HIGH
03:27:41.015 --> 03:27:43.117
SPEED RAIL THAT THEY WILL BE THE
03:27:43.184 --> 03:27:44.351
ONES WHO CAN GENERATE THESE
03:27:44.418 --> 03:27:46.220
OPPORTUNITIES AND BE THE LEADERS
03:27:46.287 --> 03:27:47.655
NOT IN CALIFORNIA.
03:27:47.721 --> 03:27:49.323
BUT THE LEADERS IN THE EXPANSION
03:27:49.390 --> 03:27:50.591
OF HIGH SPEED RAIL ACROSS THE
03:27:50.658 --> 03:27:52.793
COUNTRY IT'S ONLY THE SCRATCHING
03:27:52.860 --> 03:27:54.328
THE SURFACE THE BENEFITS WERE
03:27:54.395 --> 03:27:56.664
GETTING TODAY.
03:27:56.730 --> 03:27:59.633
IT'S JUST THE BEGINNING.
03:27:59.700 --> 03:28:01.635
I I THINK GOOD JOB JUST.
03:28:01.702 --> 03:28:02.269
YOU KNOW IT'S A GOOD STORY AND I
03:28:02.336 --> 03:28:03.804
THINK.
03:28:03.871 --> 03:28:06.006
PERHAPS ONE OF THE REASONS WHY
03:28:06.073 --> 03:28:07.741
US A QUESTION AND THE AUDITOR'S
03:28:07.808 --> 03:28:09.710
THEY WANTED A SYSTEMATIC
03:28:09.777 --> 03:28:14.248
REPORTING ON THE ECONOMIC.
03:28:14.315 --> 03:28:16.283
BENEFITS OF ALL THESE
03:28:16.350 --> 03:28:17.952
INFRASTRUCTURE PROJECTS
03:28:18.018 --> 03:28:19.987
CERTAINLY SP ONE AND HOUSING
03:28:20.054 --> 03:28:23.424
BOND THOSE OF THE TWO I'VE BEEN
03:28:23.490 --> 03:28:24.358
INVOLVED IN YEAH AND THEN I
03:28:24.425 --> 03:28:26.026
THINK.
03:28:26.093 --> 03:28:29.163
WE ARE WE ARE OF KEEP TRACK OR
03:28:29.230 --> 03:28:30.531
ECONOMIC.
03:28:30.598 --> 03:28:31.332
BENEFITS.
03:28:31.398 --> 03:28:32.433
FROM ALL THESE PROJECTS IN A
03:28:32.499 --> 03:28:33.000
SYSTEMATIC --
03:28:33.067 --> 03:28:34.535
WAY.
03:28:34.602 --> 03:28:36.804
AND SO IT IS SO I I WANNA I
03:28:36.871 --> 03:28:39.139
WANNA MOVE DOWN ON A MORE FORMAL
03:28:39.206 --> 03:28:41.408
BASIS -- FOR
03:28:41.475 --> 03:28:43.210
CALIFORNIA I THINK CALIFORNIA
03:28:43.277 --> 03:28:44.712
THE PEOPLE NEED TO SEE --
03:28:44.778 --> 03:28:46.947
OF THE ECONOMIC.
03:28:47.014 --> 03:28:48.315
DEVELOPMENT STORY.
03:28:48.382 --> 03:28:49.683
BETTER THAN THEY'VE BEEN IN THE
03:28:49.750 --> 03:28:51.619
PAST THEY LOOK AT THESE THINGS
03:28:51.685 --> 03:28:52.486
IS LIKE.
03:28:52.553 --> 03:28:55.923
COST RATHER THAN AN INVESTMENT.
03:28:55.990 --> 03:28:56.590
HANNAH AND I THINK --
03:28:56.657 --> 03:28:58.659
THAT'S PART OF IT.
03:28:58.726 --> 03:28:59.627
SO -- DO YOU
03:28:59.693 --> 03:29:00.928
HAVE DO YOU HAVE ANY COMMENTS
03:29:00.995 --> 03:29:02.830
ABOUT --
03:29:02.897 --> 03:29:04.632
LAKE VISION WISE AFTER HIGH
03:29:04.698 --> 03:29:06.600
SPEED REELS BUILD.
03:29:06.667 --> 03:29:08.736
JUST -- SO I
03:29:08.802 --> 03:29:09.370
CAN TELL MY PEOPLE IN SAN JOSE.
03:29:09.436 --> 03:29:11.038
HOW?
03:29:11.105 --> 03:29:14.174
SILICON VALLEY AND FRESNO.
03:29:14.241 --> 03:29:15.809
WHAT WOULD HAPPEN IN TERMS OF
03:29:15.876 --> 03:29:16.677
THE?
03:29:16.744 --> 03:29:18.913
SYNERGY BETWEEN THE TWO AREAS
03:29:18.979 --> 03:29:20.414
YEAH YOU KNOW WHAT IT WHAT IT
03:29:20.481 --> 03:29:22.583
WE'VE ALWAYS WANTED TO IN AND
03:29:22.650 --> 03:29:24.652
THE CENTRAL VALLEY WE JUST
03:29:24.718 --> 03:29:25.853
WANTED TO YOU KNOW IT AT A CHAIR
03:29:25.920 --> 03:29:28.022
AT THE TABLE THE ECONOMIC TABLE
03:29:28.088 --> 03:29:28.856
CALIFORNIA.
03:29:28.923 --> 03:29:30.291
AND THE BIG ONE OF THE BIGGEST
03:29:30.357 --> 03:29:32.493
CHALLENGES TO CENTRAL VALLEY IS
03:29:32.559 --> 03:29:33.661
HAD AND STE SPECIFIC
03:29:33.727 --> 03:29:36.363
SPECIFICALLY FRESNO IS JUST HOW
03:29:36.430 --> 03:29:38.899
DIFFICULT IT IS TO GET THERE.
03:29:38.966 --> 03:29:40.534
IF YOU'RE DEALING.
03:29:40.601 --> 03:29:42.069
IN SOME SORT OF THE BUSINESS
03:29:42.136 --> 03:29:42.903
ENVIRONMENT WHO --
03:29:42.970 --> 03:29:44.505
AIRLINE TRANSPORTATION IS NOT
03:29:44.571 --> 03:29:46.240
THE WAY IT USED TO BE AS YOU AS
03:29:46.307 --> 03:29:48.175
WE ALL KNOW --
03:29:48.242 --> 03:29:50.277
TO HAVE READY ACCESS TO THEIR
03:29:50.344 --> 03:29:51.912
POWER CENTERS OF CALIFORNIA
03:29:51.979 --> 03:29:53.847
NORTHERN CALIFORNIA SAN SOUTHERN
03:29:53.914 --> 03:29:55.449
CALIFORNIA THE THE SILICON
03:29:55.516 --> 03:29:57.751
VALLEY FROM CALIFORNIA FROM
03:29:57.818 --> 03:29:59.153
FRESHNESS PERSPECTIVE WE'VE GOT.
03:29:59.219 --> 03:30:02.556
A GROWING AND VIBRANT TECHNOLOGY
03:30:02.623 --> 03:30:04.425
INDUSTRY A. --
03:30:04.491 --> 03:30:06.327
IN FRESNO OVER THESE LAST THREE
03:30:06.393 --> 03:30:08.329
OR FOUR YEARS --
03:30:08.395 --> 03:30:11.665
WERE ONE PROBABLY ONE MAJOR A
03:30:11.732 --> 03:30:13.634
BREAKTHROUGH AWAY FROM BUSTING
03:30:13.701 --> 03:30:16.770
OUT OF BEING A MASSIVE NUMBER OF
03:30:16.837 --> 03:30:18.605
SMALL COMPANIES TRYING TO FIGURE
03:30:18.672 --> 03:30:21.275
OUT WHAT'S THE NEXT BEST THING
03:30:21.342 --> 03:30:22.676
IN TECHNOLOGY.
03:30:22.743 --> 03:30:25.746
AND WHAT WE BELIEVE.
03:30:25.813 --> 03:30:27.848
IS THAT AS YOU POINTED OUT
03:30:27.915 --> 03:30:28.882
SENATOR.
03:30:28.949 --> 03:30:31.418
IT'S NOT JUST WHAT THIS TO WHAT
03:30:31.485 --> 03:30:33.187
THAT SILICON VALLEY FOR INSTANCE
03:30:33.253 --> 03:30:34.989
OFFERS TO US IT'S GOING TO BE
03:30:35.055 --> 03:30:36.156
WHAT WE CAN OFFER YOU THEM AND
03:30:36.223 --> 03:30:38.492
WE BECOME VIABLE PLAYERS IN THAT.
03:30:38.559 --> 03:30:41.028
WHEN WE'VE GOT READY ACCESS TO
03:30:41.095 --> 03:30:43.197
GET TO OTHER MARKET PLACES WHICH
03:30:43.263 --> 03:30:44.932
WE'VE REALLY NOT HAD EVER?
03:30:44.999 --> 03:30:47.067
WITHTHE EXCEPTION ISSUE IN THE
03:30:47.134 --> 03:30:48.569
YEARS I'VE LIVED THERE WITH THE
03:30:48.635 --> 03:30:50.371
EXCEPTION OF AGRICULTURE.
03:30:50.437 --> 03:30:52.740
AND AGRICULTURE IS OUR MAIN
03:30:52.806 --> 03:30:54.608
STAGE YOU RIGHT NOW BUT
03:30:54.675 --> 03:30:55.909
AGRICULTURE CANNOT SHOULDER THE
03:30:55.976 --> 03:30:57.277
BURDEN ALONE.
03:30:57.344 --> 03:30:59.179
AND WE ARE FINALLY BUILDING
03:30:59.246 --> 03:31:00.314
OTHER AREAS THAT ARE GOING TO
03:31:00.381 --> 03:31:04.151
TAKE ON A LARGE PART OF THE
03:31:04.218 --> 03:31:11.358
ECONOMIC GROWTH OF OUR AREA
03:31:11.425 --> 03:31:11.658
[inaudible]
03:31:11.725 --> 03:31:13.360
THIS ROUND.
03:31:13.427 --> 03:31:16.030
THANK YOU AND APOLOGIES FOR
03:31:16.096 --> 03:31:16.997
GETTING HERE LATE TODAY THEY
03:31:17.064 --> 03:31:18.565
HAVEN'T FULLY DEVELOPED THE HIGH
03:31:18.632 --> 03:31:20.134
SPEED RAIL AND GETTING ON THE
03:31:20.200 --> 03:31:21.568
HIGHWAY NINETY NINE WAS A LITTLE
03:31:21.635 --> 03:31:22.403
MORE DANGEROUS THAN I HAD
03:31:22.469 --> 03:31:23.837
EXPECTED.
03:31:23.904 --> 03:31:25.639
I WANTED TO THANK MY COLLEAGUES
03:31:25.706 --> 03:31:27.307
IN A BIPARTISAN BICAMERAL
03:31:27.374 --> 03:31:29.376
FASHION FOR ASKING FOR THIS
03:31:29.443 --> 03:31:30.577
AUDIT IN REQUESTING THIS
03:31:30.644 --> 03:31:32.146
INFORMATION.
03:31:32.212 --> 03:31:33.981
IN MEDICINE WE OFTENTIMES ASKED
03:31:34.048 --> 03:31:35.249
FOR TEST WHEN WE WERE AT AN
03:31:35.315 --> 03:31:37.151
INFLECTION POINT AND I BELIEVE
03:31:37.217 --> 03:31:38.819
THIS MAY BE AN INFLECTION POINT
03:31:38.886 --> 03:31:39.920
FOR HIGH SPEED RAIL.
03:31:39.987 --> 03:31:40.954
WHERE WE HAVE AN OPPORTUNITY
03:31:41.021 --> 03:31:42.623
WITH THE NEW GOVERNOR TO MAKE
03:31:42.689 --> 03:31:43.857
SURE THAT WE ARE BEING FISCALLY
03:31:43.924 --> 03:31:45.626
RESPONSIBLE WITH OUR PUBLIC
03:31:45.692 --> 03:31:46.994
RESOURCES?
03:31:47.061 --> 03:31:48.662
THE RECOMMENDATIONS FROM THE
03:31:48.729 --> 03:31:51.698
AUDIT ARE EXEMPLARY AND TO JUST
03:31:51.765 --> 03:31:52.800
WANTED TO THANK THE AUDITOR
03:31:52.866 --> 03:31:55.002
AGAIN SHE IS CONSTANTLY BEEN
03:31:55.069 --> 03:31:56.737
TIMELY AND PROFESSIONAL AND DOES
03:31:56.804 --> 03:31:58.305
HER JOB WELL AND GIVES MANY OF
03:31:58.372 --> 03:31:59.907
US CONFIDENCE --
03:31:59.973 --> 03:32:03.777
IN THE SHE PUTS FORWARD.
03:32:03.844 --> 03:32:05.179
I'M REALLY WANTED TO TALK TO YOU
03:32:05.245 --> 03:32:06.480
IF I COULD ABOUT THE SPECIFIC
03:32:06.547 --> 03:32:07.881
SUGGESTION THAT SENATOR PELL
03:32:07.948 --> 03:32:09.450
MADE REGARDING THE INSPECTOR
03:32:09.516 --> 03:32:11.018
GENERAL AND WHETHER OR NOT THAT
03:32:11.085 --> 03:32:11.985
WOULD BE.
03:32:12.052 --> 03:32:13.687
AMENABLE TO THE HIGH SPEED RAIL
03:32:13.754 --> 03:32:15.155
AUTHORITY BOARD.
03:32:15.222 --> 03:32:16.924
AND WHETHER QUARTERLY REPORTS
03:32:16.990 --> 03:32:18.759
SEEMED AS IF IN AN APPROPRIATE
03:32:18.826 --> 03:32:21.562
AMOUNT OF TIME --
03:32:21.628 --> 03:32:24.765
WITHOUT BEING OVERLY BURKE --
03:32:24.832 --> 03:32:27.568
THANK YOU A ASSEMBLYMAN ARAMBULA
03:32:27.634 --> 03:32:29.436
I I CAN'T --
03:32:29.503 --> 03:32:30.771
I'M NOT SPEAKING FROM MY
03:32:30.838 --> 03:32:33.340
COLLEAGUES THAT I WOULD SAY THAT --
03:32:33.407 --> 03:32:35.242
I NORMAL PRETTY WELL I FOR
03:32:35.309 --> 03:32:37.144
MYSELF I WOULD ABSOLUTELY
03:32:37.211 --> 03:32:41.248
EMBRACE THE IDEA --
03:32:41.315 --> 03:32:43.517
I WANTED TO TALK AS WELL IF I
03:32:43.584 --> 03:32:46.887
COULD ABOUT THE SENATE BILL --
03:32:46.954 --> 03:32:47.488
ELEVEN SEVENTY TWO WHICH I FOR
03:32:47.554 --> 03:32:48.889
MANAGED TO WANT TO THANK THE
03:32:48.956 --> 03:32:50.991
AUTHOR HERE FOR CARRYING IT AND
03:32:51.058 --> 03:32:53.127
WANTED TO SEE WHAT THOSE
03:32:53.193 --> 03:32:54.595
IMPROVEMENTS --
03:32:54.661 --> 03:32:56.797
IN RIGHT OF WAY ACQUISITIONS HOW
03:32:56.864 --> 03:32:58.699
THAT WOULD BE ABLE TO HELP WITH
03:32:58.765 --> 03:32:59.900
THIS PROCESS.
03:32:59.967 --> 03:33:01.235
IT DOESN'T APPEAR THAT THAT WAS
03:33:01.301 --> 03:33:03.070
ADDRESSED AT ALL IN THE AUDIT AS
03:33:03.137 --> 03:33:05.272
IT WAS PASSED AFTER THE ON IT
03:33:05.339 --> 03:33:06.039
WAS REQUESTED.
03:33:06.106 --> 03:33:07.341
BUT I'M HOPING THAT YOU CAN
03:33:07.407 --> 03:33:08.976
SPEAK -- TO
03:33:09.042 --> 03:33:11.478
THE MERITS OF THIS BILL AND HOW
03:33:11.545 --> 03:33:13.147
YOU SEE IT AFFECTING.
03:33:13.213 --> 03:33:14.248
GOING.
03:33:14.314 --> 03:33:17.184
FOR I DON'T KNOW IF JOE WANTS TO
03:33:17.251 --> 03:33:17.784
ADD ANYTHING TO IT BEYOND THIS
03:33:17.851 --> 03:33:19.853
BIT -- FOR
03:33:19.920 --> 03:33:22.022
THIS FOR A NUMBER OF YEARS AND
03:33:22.089 --> 03:33:23.490
WE THANK YOU VERY MUCH FOR
03:33:23.557 --> 03:33:24.658
GETTING IT DONE --
03:33:24.725 --> 03:33:27.027
IT IT.
03:33:27.094 --> 03:33:29.062
IT TIME COMPLICATES --
03:33:29.129 --> 03:33:30.764
A PART OF RIGHT OF WAY
03:33:30.831 --> 03:33:32.733
ACQUISITION AND SPEECH THE
03:33:32.799 --> 03:33:34.201
PROCESS.
03:33:34.268 --> 03:33:36.470
AND IT GIVES US THE SAME A
03:33:36.537 --> 03:33:38.105
RIGHTS ARE THIS DON'T SAY RIGHTS
03:33:38.172 --> 03:33:39.840
BUT THE SAME AUTHORITY THAT
03:33:39.907 --> 03:33:41.842
CALTRANS OPERATES UNDER AND WE
03:33:41.909 --> 03:33:43.410
WERE FOR YEARS ASK WHY HAVEN'T
03:33:43.477 --> 03:33:45.045
YOU GOT THE SAME.
03:33:45.112 --> 03:33:46.947
ABILITY THAT CALTRAIN ARE
03:33:47.014 --> 03:33:49.516
CALTRANS HAS TO GENERATE A RIGHT
03:33:49.583 --> 03:33:51.051
OF WAY -- IT
03:33:51.118 --> 03:33:54.087
WAS JUST IT WAS JUST NOT EASY SO
03:33:54.154 --> 03:33:55.289
WHAT YOU DID IS GREATLY
03:33:55.355 --> 03:33:57.191
APPRECIATED IT WILL HELP IN THE
03:33:57.257 --> 03:33:58.292
EFFICIENCY.
03:33:58.358 --> 03:34:03.430
AND THE SUCCESS OF OUR OF OUR
03:34:03.497 --> 03:34:05.866
ASSEMBLY OF RIGHT OF WAY.
03:34:05.933 --> 03:34:08.802
FROM ISLAND WITH IF I CAN --
03:34:08.869 --> 03:34:09.469
WANTING TO ECHO YOUR SENTIMENTS
03:34:09.536 --> 03:34:10.904
OF LOOKING AT THIS A YEAR FROM
03:34:10.971 --> 03:34:13.106
NOW AND MANY OF US ON THIS DíAS
03:34:13.173 --> 03:34:14.408
ARE GONNA WANT TO SEE AND TO
03:34:14.474 --> 03:34:16.443
ENSURE THAT THE RECOMMENDATIONS
03:34:16.510 --> 03:34:19.646
OF THE AUDITOR ARE COMPLETED AND
03:34:19.713 --> 03:34:21.381
JUST WOULD LOOK FORWARD.
03:34:21.448 --> 03:34:22.749
TO THAT DISCUSSION ON THAT DAY.
03:34:22.816 --> 03:34:24.384
BUT WOULD BE REMISS IF I DIDN'T
03:34:24.451 --> 03:34:26.253
ALSO HIGHLIGHT THE ECONOMIC
03:34:26.320 --> 03:34:27.554
IMPACTS THAT ARE HAPPENING IN MY
03:34:27.621 --> 03:34:28.689
BACKYARD.
03:34:28.755 --> 03:34:30.224
AND THE BENEFITS THAT ARE
03:34:30.290 --> 03:34:31.825
OCCURRING EACH AND EVERY DAY
03:34:31.892 --> 03:34:34.728
BECAUSE OF HIGH SPEED RAIL --
03:34:34.795 --> 03:34:36.396
IS TACTILE.
03:34:36.463 --> 03:34:38.599
EACH CHANGING THE WAY WE FEEL IN
03:34:38.665 --> 03:34:40.567
THE VALLEY WHEN YOU CAN THINK
03:34:40.634 --> 03:34:42.169
ABOUT BEING FIFTY TWO MINUTES
03:34:42.236 --> 03:34:43.470
AWAY FROM THE SILICON VALLEY.
03:34:43.537 --> 03:34:45.906
AND YOU'RE RIGHT IT'S NOT JUST
03:34:45.973 --> 03:34:47.407
WHETHER THOSE START UPS ARE
03:34:47.474 --> 03:34:49.209
GONNA COME TO US BUT WHETHER OR
03:34:49.276 --> 03:34:50.677
NOT THEY LIVE IN THE CENTRAL
03:34:50.744 --> 03:34:51.812
VALLEY WHETHER OR NOT WE DEAL
03:34:51.878 --> 03:34:53.313
WITH SOME OF OUR COMPLEX.
03:34:53.380 --> 03:34:54.615
PROBLEMS LIKE HOUSING
03:34:54.681 --> 03:34:56.149
AFFORDABILITY BY ACTUALLY
03:34:56.216 --> 03:34:57.551
INVESTING IN INFRASTRUCTURE
03:34:57.618 --> 03:34:59.319
WHICH IS WHAT MOST.
03:34:59.386 --> 03:35:00.220
INDUSTRIALIZED COUNTRIES AND
03:35:00.287 --> 03:35:05.392
STATES ARE AND SO I LOOK FORWARD --
03:35:05.459 --> 03:35:07.160
TO CONTINUING THE SUCCESS THAT
03:35:07.227 --> 03:35:08.695
HAS STARTED --
03:35:08.762 --> 03:35:10.197
AND INSURING THAT --
03:35:10.264 --> 03:35:12.032
WE ARE BEING RESPONSIBLE --
03:35:12.099 --> 03:35:14.167
WITH OUR PUBLIC RESOURCES.
03:35:14.234 --> 03:35:17.704
THANK YOU THANK YOU.
03:35:17.771 --> 03:35:20.774
I THINK IT'S MY TURN.
03:35:20.841 --> 03:35:22.342
THIS RICHARD SAID THANKS.
03:35:22.409 --> 03:35:23.543
FOR COMING BEFORE THIS COMMITTEE
03:35:23.610 --> 03:35:25.812
TODAY AND I I WANT TO START OFF
03:35:25.879 --> 03:35:27.948
BY SAYING THAT I AGREE WITH THE
03:35:28.015 --> 03:35:29.216
CENTRE BELL.
03:35:29.283 --> 03:35:32.085
AND ASSEMBLYMEMBER AROUND A LOT
03:35:32.152 --> 03:35:35.188
IN TERMS OF THE TREMENDOUS
03:35:35.255 --> 03:35:36.690
BENEFIT FOR THIS.
03:35:36.757 --> 03:35:39.393
PROPOSAL FOR A VALLEY TO VALLEY --
03:35:39.459 --> 03:35:42.095
CONNECTION THAT --
03:35:42.162 --> 03:35:44.998
HAS BEEN DISCUSSED --
03:35:45.065 --> 03:35:46.400
MAG WE SPENT A LOT OF TIME.
03:35:46.466 --> 03:35:47.968
TALKING ABOUT TO THAT NOT ONLY
03:35:48.035 --> 03:35:50.203
ARE TRANSPORTATION NEEDS BUT ARE
03:35:50.270 --> 03:35:52.005
AFFORDABLE HOUSING NEEDS AND TO
03:35:52.072 --> 03:35:53.774
BE ABLE TO EXPAND THE SILICON
03:35:53.840 --> 03:35:55.642
VALLEY WORK FORCE TO THE CENTRAL
03:35:55.709 --> 03:35:56.643
VALLEY -- AS
03:35:56.710 --> 03:35:58.245
A POTENTIAL COMMUTING --
03:35:58.312 --> 03:36:01.615
WORKFORCE I I THINK YOU KNOW THE
03:36:01.682 --> 03:36:03.350
THE POTENTIAL.
03:36:03.417 --> 03:36:05.218
FOR A STATE WIDE YOU COPYING
03:36:05.285 --> 03:36:07.888
IMPACT IS IS A VERY CLEAR. TO TO
03:36:07.954 --> 03:36:11.158
ALL OF US --
03:36:11.224 --> 03:36:15.162
HAVING SAID THAT I YOU KNOW I AM
03:36:15.228 --> 03:36:16.630
VERY CONCERNED --
03:36:16.697 --> 03:36:18.432
WITH THE FINDINGS OF THE STATE
03:36:18.498 --> 03:36:24.137
AUDITOR AND YOU KNOW HIGH --
03:36:24.204 --> 03:36:26.106
NOT SURE THAT --
03:36:26.173 --> 03:36:27.441
NOTHING PERSONAL BUT YOUR
03:36:27.507 --> 03:36:33.080
TESTIMONY HERE TODAY IS A GONE
03:36:33.146 --> 03:36:34.348
FAR.
03:36:34.414 --> 03:36:36.016
IN TERMS OF REGAINING MY TRUST
03:36:36.083 --> 03:36:37.317
AND CONFIDENCE IN THE HIGH SPEED
03:36:37.384 --> 03:36:39.486
RAIL AUTHORITY TO EXECUTE THIS
03:36:39.553 --> 03:36:41.788
PROJECT --
03:36:41.855 --> 03:36:43.090
THAT THAT'S COMING FOR ME AS A
03:36:43.156 --> 03:36:44.624
AS A FIRM BELIEVER IN THE
03:36:44.691 --> 03:36:46.460
IMPORTANCE OF INVESTING IN ENTRY
03:36:46.526 --> 03:36:47.794
AND INFRASTRUCTURE --
03:36:47.861 --> 03:36:49.963
AND AND IMPORTANCE OF OF OF
03:36:50.030 --> 03:36:51.064
CREATING JOBS --
03:36:51.131 --> 03:36:53.600
ESPECIALLY AND THE ECONOMICALLY
03:36:53.667 --> 03:36:54.568
DISC --
03:36:54.634 --> 03:36:55.635
DEPRESSED AREAS OF WHAT IF OUR
03:36:55.702 --> 03:36:58.438
STATE --
03:36:58.505 --> 03:36:59.639
BIKE BIGGEST CONCERN AS I I
03:36:59.706 --> 03:37:00.374
THINK -- HAS
03:37:00.440 --> 03:37:01.575
BEEN THE CENTRAL THEME OF THIS
03:37:01.641 --> 03:37:02.709
WHOLE HEARING HAS BEEN.
03:37:02.776 --> 03:37:05.479
WHETHER.
03:37:05.545 --> 03:37:06.113
TAXPAYER DOLLARS ARE BEING WELL
03:37:06.179 --> 03:37:07.147
SPENT.
03:37:07.214 --> 03:37:09.049
AND WHETHER WE ARE DOING
03:37:09.116 --> 03:37:11.151
EVERYTHING POSSIBLE TO ENSURE
03:37:11.218 --> 03:37:12.319
THAT HAS PRETTY BE DOLLARS ARE
03:37:12.386 --> 03:37:14.955
BEING WELL SPENT --
03:37:15.021 --> 03:37:17.524
AND I I HEARD YOU SAY THAT --
03:37:17.591 --> 03:37:20.127
YOU KNOW I THE BASICALLY THAT
03:37:20.193 --> 03:37:22.329
YOU'RE.
03:37:22.396 --> 03:37:23.930
ACCEPTING AS REPRESENTATIVE WITH
03:37:23.997 --> 03:37:25.098
HIGH SPEED RAIL AUTHORITY THAT
03:37:25.165 --> 03:37:26.466
THE LACK OF DOCUMENTATION IN
03:37:26.533 --> 03:37:28.668
PARTICULAR HAS BEEN.
03:37:28.735 --> 03:37:29.636
IN YOUR WORDS --
03:37:29.703 --> 03:37:32.639
THE EMBARRASSED INEXCUSABLE TOO
03:37:32.706 --> 03:37:34.841
SLOW WITH OVERSIGHT.
03:37:34.908 --> 03:37:36.076
AND THAT IT'S ON ME YOU WERE AND
03:37:36.143 --> 03:37:37.344
IN TERMS OF NOT ASKING WHERE ARE
03:37:37.411 --> 03:37:40.514
WE WITH OVERSIGHT.
03:37:40.580 --> 03:37:43.617
AND AND THAT COMES ONLY AFTER I
03:37:43.683 --> 03:37:45.152
CORD TO THE AUDITOR'S REPORT
03:37:45.218 --> 03:37:46.286
AFTER TWO POINT SIX BILLION
03:37:46.353 --> 03:37:49.423
DOLLARS IN SPENDING.
03:37:49.489 --> 03:37:50.524
CORRECT ME IF I'M WRONG ON THAT
03:37:50.590 --> 03:37:55.028
BUT THAT'S A AND SO.
03:37:55.095 --> 03:37:57.464
MY CONCERN IS IS GOING FORWARD
03:37:57.531 --> 03:37:59.266
IN THE UNITED I CERTAINLY WOULD
03:37:59.332 --> 03:38:00.767
LIKE TO HERE MORE ABOUT TO THE
03:38:00.834 --> 03:38:03.603
PROPOSAL THEM INSPECTOR GENERAL
03:38:03.670 --> 03:38:03.904
[inaudible]
03:38:03.970 --> 03:38:06.840
BUT YOU KNOW WE A LOT OF THE
03:38:06.907 --> 03:38:08.108
CONVERSATION IN TODAY'S HEARING
03:38:08.175 --> 03:38:10.410
IS BEEN FOCUSED ON ON HIRING
03:38:10.477 --> 03:38:12.512
STATE EMPLOYEES RATHER THAN.
03:38:12.579 --> 03:38:13.647
BE --
03:38:13.713 --> 03:38:15.682
OUTSIDE CONSULTANTS BUT I I
03:38:15.749 --> 03:38:19.486
THINK WE'VE ALSO.
03:38:19.553 --> 03:38:20.287
THERE'S BEEN ENOUGH TESTIMONY
03:38:20.353 --> 03:38:23.690
TODAY OF THE CHALLENGES OF
03:38:23.757 --> 03:38:26.059
ATTRACTING --
03:38:26.126 --> 03:38:28.728
THE TALENT NECESSARY ORDER.
03:38:28.795 --> 03:38:31.064
TO PROPERLY MANAGE THE THE SCOPE
03:38:31.131 --> 03:38:32.499
OF OF OF OF THIS TYPE OF PROJECT
03:38:32.566 --> 03:38:34.201
WHAT I'M CONCERNED ABOUT.
03:38:34.267 --> 03:38:35.869
IS THAT WE'RE JUST GONNA GO
03:38:35.936 --> 03:38:37.103
THROUGH THE MOTIONS YOU'RE GONNA
03:38:37.170 --> 03:38:38.772
PUT BUT THE B. C. P. OUT FOR
03:38:38.839 --> 03:38:40.073
STATE EMPLOYEES.
03:38:40.140 --> 03:38:41.141
WE'RE GONNA ADVERTISE THE
03:38:41.208 --> 03:38:42.876
POSITION IN THOSE POSITIONS ARE
03:38:42.943 --> 03:38:44.444
COULD BE LEFT UNFILLED AND
03:38:44.511 --> 03:38:44.845
YOU'RE GONNA HAVE.
03:38:44.911 --> 03:38:47.681
THE THE THE THE OPPORTUNITY OR
03:38:47.747 --> 03:38:48.482
THE EXCUSE TO SAY WELL WE CAN'T
03:38:48.548 --> 03:38:49.816
FILL THESE POSITIONS WHO HAVE TO
03:38:49.883 --> 03:38:51.251
CONSULT WITH TO CONTINUE WITH
03:38:51.318 --> 03:38:52.919
THE CONSULTANTS.
03:38:52.986 --> 03:38:55.288
IN THE MEANTIME THE THE TWENTY
03:38:55.355 --> 03:38:57.491
TWENTY TWO DEADLINE IS LOOMING --
03:38:57.557 --> 03:38:58.892
YOU KNOW BUT I APPRECIATE YOUR
03:38:58.959 --> 03:39:00.427
TESTIMONY ABOUT.
03:39:00.494 --> 03:39:02.596
HOW PART OF PLAN B. MAYBE DO IT
03:39:02.662 --> 03:39:04.598
REQUESTED EXTENSION?
03:39:04.664 --> 03:39:05.332
BUT THAT'S CERTAINLY NOT
03:39:05.398 --> 03:39:08.602
GUARANTEED AND FROM OUR AND WE
03:39:08.668 --> 03:39:13.306
HAVE TO DO EVERYTHING POSSIBLE --
03:39:13.373 --> 03:39:16.776
TO TO TRY TO AVOID THAT SCENARIO.
03:39:16.843 --> 03:39:18.512
I AND ONE ASK GOOD --
03:39:18.578 --> 03:39:20.814
MISTER HEDGES.
03:39:20.881 --> 03:39:24.885
I MEAN I MY MY MY FOLKS LIVE IN --
03:39:24.951 --> 03:39:25.752
IN IN SEATTLE AND SO I KNOW THAT
03:39:25.819 --> 03:39:26.553
THAT [inaudible]
03:39:26.620 --> 03:39:28.054
TO THAT --
03:39:28.121 --> 03:39:29.956
PROJECT THEY WORKED ON UP THERE
03:39:30.023 --> 03:39:33.827
WAS A WITH WAS A BIG DEAL --
03:39:33.894 --> 03:39:36.796
IMMEDIATE IT'S IT'S ART AREN'T
03:39:36.863 --> 03:39:37.831
THERE ARE.
03:39:37.898 --> 03:39:41.501
MODELS OR OR OR OPPORTUNITIES --
03:39:41.568 --> 03:39:44.137
FOR PUBLIC PROJECTS TO BE ABLE
03:39:44.204 --> 03:39:46.273
TO PROPERLY --
03:39:46.339 --> 03:39:49.209
SCOPE --
03:39:49.276 --> 03:39:50.510
CONSULTANTS WITH MEASURES OF
03:39:50.577 --> 03:39:52.312
ACCOUNTABILITY AND WITH THE
03:39:52.379 --> 03:39:53.980
ACTUAL COMMITMENT AND AND AN
03:39:54.047 --> 03:39:56.316
ACTUAL IMPLEMENTATION OF OF
03:39:56.383 --> 03:39:58.919
ACCOUNTABILITY. TO TO ENSURE ONE
03:39:58.985 --> 03:40:00.287
THAT WE HAVE COMPETENT
03:40:00.353 --> 03:40:02.422
EXPERIENCED PEOPLE TO MANAGE THE
03:40:02.489 --> 03:40:04.524
SCOPE OF THESE PROJECTS BUT AT
03:40:04.591 --> 03:40:04.858
THE SAME TIME.
03:40:04.925 --> 03:40:06.526
YOU KNOW.
03:40:06.593 --> 03:40:07.694
ENSURING THAT WE COULD WE CAN
03:40:07.761 --> 03:40:09.162
HOLD THEM ACCOUNTABLE AND AND
03:40:09.229 --> 03:40:11.464
AND YOU KNOW I I I JUST DON'T
03:40:11.531 --> 03:40:12.766
NECESSARILY SEE.
03:40:12.832 --> 03:40:14.701
HIRING STATE EMPLOYEES TO DO THE
03:40:14.768 --> 03:40:18.471
JOB AS BEING.
03:40:18.538 --> 03:40:19.639
THE THE BE ALL AND END ALL HERE
03:40:19.706 --> 03:40:21.174
ABSOLUTELY AGREE WITH YOU.
03:40:21.241 --> 03:40:23.944
THAT MODEL IS VERY VIABLE.
03:40:24.010 --> 03:40:26.012
IT'S BEING.
03:40:26.079 --> 03:40:28.014
BASICALLY APPLIED AS WE SPEAK WE
03:40:28.081 --> 03:40:29.215
SHIFTED TO THE NEW ORGANIZATIONS
03:40:29.282 --> 03:40:32.085
THAT'S EXACTLY WHAT WE JUST DID.
03:40:32.152 --> 03:40:34.421
WE MOVED THE STATE WE DEFINE IT
03:40:34.487 --> 03:40:35.889
IN A RACY ROLES AND
03:40:35.956 --> 03:40:36.756
RESPONSIBILITY AND
03:40:36.823 --> 03:40:39.559
ACCOUNTABILITY IS THE ROLES OF
03:40:39.626 --> 03:40:41.828
THE STATE EMPLOYEES SPECIFICALLY
03:40:41.895 --> 03:40:44.698
FOR THIS AUTHORIZATION OVERSIGHT.
03:40:44.764 --> 03:40:46.733
BUT TO BE AUGMENTED WITH THOSE
03:40:46.800 --> 03:40:48.368
OF CONSULTANTS AND THAT'S
03:40:48.435 --> 03:40:50.003
BASICALLY WHAT DID YOU PM P.
03:40:50.070 --> 03:40:50.937
DOES.
03:40:51.004 --> 03:40:52.706
NOW THE THE OBJECTIVE HERE IS IS
03:40:52.772 --> 03:40:55.008
EXACTLY THAT IS TO APPLY THE
03:40:55.075 --> 03:40:56.843
LESSONS LEARNED OF SEATTLE.
03:40:56.910 --> 03:40:59.145
WHICH WE HAVE APPLIED YOU RIGHT
03:40:59.212 --> 03:41:01.548
NOW YOU'RE SEEING WITH THIS.
03:41:01.615 --> 03:41:03.283
I DON'T WANNA PLAN B. IS IT'S
03:41:03.350 --> 03:41:05.018
ALWAYS BEEN MY PLAN.
03:41:05.085 --> 03:41:07.754
AND THAT IS VERY SIMPLE HERE
03:41:07.821 --> 03:41:09.623
RIGHT LIST WHICH GIVE.
03:41:09.689 --> 03:41:11.424
WHICH IS ORGANIZATION WAS GET
03:41:11.491 --> 03:41:13.426
REORGANIZED WE'VE DONE THAT
03:41:13.493 --> 03:41:14.327
LET'S GET A WINE TO THE
03:41:14.394 --> 03:41:17.631
CONTRACTORS WE'VE DONE THAT.
03:41:17.697 --> 03:41:19.032
OKAY AND LET'S GET TO OUR
03:41:19.099 --> 03:41:20.133
PROCESSES IN OUR PROCEDURE.
03:41:20.200 --> 03:41:22.535
VERY MUCH APPRECIATE --
03:41:22.602 --> 03:41:25.472
SP YOU ONE ONE SEVEN TWO SOFT
03:41:25.538 --> 03:41:28.008
LITERALLY FOR MONTHS OFF OFF THE
03:41:28.074 --> 03:41:30.210
ACQUISITION OF REAL STATE
03:41:30.276 --> 03:41:30.810
PROPERTY.
03:41:30.877 --> 03:41:32.112
THE BIG THING WHAT YOU'RE SEEING
03:41:32.178 --> 03:41:33.980
RIGHT NOW FOR THE FIRST TIME IS
03:41:34.047 --> 03:41:36.583
ALIGNMENT WE HAVE IN THIS WHAT I
03:41:36.650 --> 03:41:39.386
CALL THE GET TO WORK SCHEDULES.
03:41:39.452 --> 03:41:41.655
IS VERY METHODICAL OF BALLING
03:41:41.721 --> 03:41:43.590
CORD THAT GOES BAG BACK AND
03:41:43.657 --> 03:41:45.558
FORTH WITH A GARCIA. TO THE
03:41:45.625 --> 03:41:47.293
SEQUENTIAL DEFINABLE FEATURES A
03:41:47.360 --> 03:41:50.730
WORK THAT OF CONSTRUCTION
03:41:50.797 --> 03:41:52.165
SCHEDULE IT'S WORKING.
03:41:52.232 --> 03:41:53.199
WE'VE MADE TREMENDOUS GAINS IN
03:41:53.266 --> 03:41:54.601
THE LAST SIX MONTHS IN RIGHT
03:41:54.668 --> 03:41:55.468
AWAY.
03:41:55.535 --> 03:41:58.004
YOU'RE SEEING NOW THAT THE LEFT
03:41:58.071 --> 03:42:01.041
WITH REGARDS TO TO A ARE EIGHT
03:42:01.107 --> 03:42:03.576
EXCLUDABLE ROW AS DOUBLED IN THE
03:42:03.643 --> 03:42:04.444
LAST SIX MONTHS.
03:42:04.511 --> 03:42:06.079
WE GIVE WHAT YOU'RE EXPERIENCING
03:42:06.146 --> 03:42:08.682
RIGHT NOW IS THE TRADITIONAL S.
03:42:08.748 --> 03:42:09.916
CURVE OF CONSTRUCTION.
03:42:09.983 --> 03:42:11.685
RIGHT YOU WILL SEE IT COMING UP
03:42:11.751 --> 03:42:14.621
WE WE HAVE THOSE CONTROLS.
03:42:14.688 --> 03:42:16.890
IN PLACE RIGHT NOW THE BILL THE
03:42:16.956 --> 03:42:19.459
TO SHARE IF PROMISED YOU WITH
03:42:19.526 --> 03:42:20.527
THAT WITH REGARDS.
03:42:20.593 --> 03:42:21.895
TO THE INTERACTIONS WITH YOUR
03:42:21.961 --> 03:42:24.064
STAFF ALREADY ONE START SHARING
03:42:24.130 --> 03:42:26.666
THIS INFORMATION AND PROVEN TO
03:42:26.733 --> 03:42:29.235
YOU I SAID IS MAYBE ON ABOUT THE
03:42:29.302 --> 03:42:30.503
SIX STATES.
03:42:30.570 --> 03:42:33.206
IN NG EAST OF MISSOURI
03:42:33.273 --> 03:42:34.474
PERSON SHOWING YOU.
03:42:34.541 --> 03:42:35.141
AND THAT'S WHAT WE WANT TO START
03:42:35.208 --> 03:42:37.310
DOING ALL THE LEADING INDICATORS
03:42:37.377 --> 03:42:38.912
ARE THERE ARE STARTING TO TAKE
03:42:38.978 --> 03:42:40.413
HOLD.
03:42:40.480 --> 03:42:45.251
AND AND WORK ITS WAY OUT CAR.
03:42:45.318 --> 03:42:47.721
ALRIGHT SO WHAT I HEAR IS THAT
03:42:47.787 --> 03:42:48.021
[inaudible]
03:42:48.088 --> 03:42:52.692
WE DON'T NECESSARILY WANT --
03:42:52.759 --> 03:42:56.596
TO ABANDONED THE THE POTENTIAL
03:42:56.663 --> 03:42:58.998
TO CONTINUE TO USE --
03:42:59.065 --> 03:43:00.734
CONSULTANTS OUTSIDE CONSULTANTS
03:43:00.800 --> 03:43:02.235
BUT IN A WAY THAT WE CAN
03:43:02.302 --> 03:43:03.436
PROPERLY ENSURE THAT THEY'RE
03:43:03.503 --> 03:43:04.704
BEING HELD ACCOUNTABLE.
03:43:04.771 --> 03:43:06.239
ABSOLUTELY SURE THERE'S A ROLE
03:43:06.306 --> 03:43:08.241
FOR STATE PAROLE FOR CONSULTANTS
03:43:08.308 --> 03:43:12.512
AND SPECIAL THE REALIZATION IS --
03:43:12.579 --> 03:43:14.447
THAT EVENTUALLY HOPEFULLY.
03:43:14.514 --> 03:43:15.982
THAT THAT THE CONSTRUCTION WILL
03:43:16.049 --> 03:43:18.651
AND AND WILL THEN TRANSITION
03:43:18.718 --> 03:43:20.587
INTO OPERATIONS AND MAINTENANCE.
03:43:20.653 --> 03:43:23.757
IN IN TERMS OF FOCUSING ON THIS
03:43:23.823 --> 03:43:30.263
VALLEY TO VALLEY --
03:43:30.330 --> 03:43:32.732
A MAJOR RIVER OVER THE CALL THAT
03:43:32.799 --> 03:43:33.900
THAT CENTER BILL ONLINE
03:43:33.967 --> 03:43:35.401
ASSEMBLYMEMBER ARRIVAL ARE
03:43:35.468 --> 03:43:35.935
TALKING ABOUT.
03:43:36.002 --> 03:43:36.970
HAS -- THE
03:43:37.036 --> 03:43:39.205
HIGH SPEED RAIL --
03:43:39.272 --> 03:43:41.841
BOARD HAD ANY CONVERSATIONS
03:43:41.908 --> 03:43:43.176
ABOUT [inaudible]
03:43:43.243 --> 03:43:47.447
FOCUSING ON THAT --
03:43:47.514 --> 03:43:50.683
PROJECT OF TO COMPLETE THAT
03:43:50.750 --> 03:43:52.919
FIRST BEFORE --
03:43:52.986 --> 03:43:55.555
CONTINUING WITH THE REST OF THE
03:43:55.622 --> 03:43:58.091
THE PROPOSED --
03:43:58.158 --> 03:43:59.492
PROJECT --
03:43:59.559 --> 03:44:01.661
BEFORE CONTINUING NORTH FLETCHER
03:44:01.728 --> 03:44:04.397
I'M SURE IT'D BE IT THE THE REST
03:44:04.464 --> 03:44:05.031
OF THE ORIGINAL PROPOSITION ONE
03:44:05.098 --> 03:44:07.200
A A PROPOSAL TO CONNECT TO SAM
03:44:07.267 --> 03:44:10.103
CISCO.
03:44:10.170 --> 03:44:11.704
TO UTILIZE ANGELES --
03:44:11.771 --> 03:44:15.208
THAT IS SET.
03:44:15.275 --> 03:44:16.810
I'M SURE.
03:44:16.876 --> 03:44:20.547
IN THE SAME CLASS SERVICE LET
03:44:20.613 --> 03:44:21.981
THE BIRD.
03:44:22.048 --> 03:44:24.951
IN THE EVENT THAT QUESTION I I
03:44:25.018 --> 03:44:26.186
COULD LIKE RESTATING WHAT I MEAN --
03:44:26.252 --> 03:44:26.820
BASICALLY IT HASN'T BEEN ANY
03:44:26.886 --> 03:44:27.453
CONVERSATIONS ABOUT TRYING TO
03:44:27.520 --> 03:44:29.189
FOCUS ON COMPLETING THE VALID
03:44:29.255 --> 03:44:36.329
VALLEY PROJECT FIRST YEAH.
03:44:36.396 --> 03:44:37.430
YES AND THEN REVISITING THE
03:44:37.497 --> 03:44:39.065
VIABILITY OF OF CONTINUE WITH
03:44:39.132 --> 03:44:41.467
THE REST OF THE PROPOSED PROJECT.
03:44:41.534 --> 03:44:42.836
I THINK THAT --
03:44:42.902 --> 03:44:43.236
IT THAT.
03:44:43.303 --> 03:44:44.637
EXACTLY I MEAN WHAT WE ARE DOING
03:44:44.704 --> 03:44:48.241
IS IS FOCUSING ON COMPLETING
03:44:48.308 --> 03:44:50.043
VALLEY TO VALLEY --
03:44:50.109 --> 03:44:53.146
IT IS ALWAYS BEEN THE WORD.
03:44:53.213 --> 03:44:55.148
IT'S IT'S ONE OF THE IT'S ONE OF
03:44:55.215 --> 03:44:56.916
THE STRATEGIES WITH REGARDS TO
03:44:56.983 --> 03:44:58.718
HOW DO WE FIND.
03:44:58.785 --> 03:44:59.752
A FUTURE --
03:44:59.819 --> 03:45:01.521
SEGMENTS OF THE OF THE HIGH
03:45:01.588 --> 03:45:02.722
SPEED RAIL.
03:45:02.789 --> 03:45:04.224
OF SPEED SYSTEM --
03:45:04.290 --> 03:45:07.293
BY BEING ABLE TO SELL --
03:45:07.360 --> 03:45:09.362
BY FRANCHISE WHAT WE'VE ALREADY
03:45:09.429 --> 03:45:10.563
WHAT WE'RE ALREADY OPERATING ON
03:45:10.630 --> 03:45:13.399
SO OUR WHOLE FOCUS IS.
03:45:13.466 --> 03:45:15.835
WE IS HEADING FROM THE CENTRAL
03:45:15.902 --> 03:45:18.271
VALLEY TO THE BAY AREA.
03:45:18.338 --> 03:45:19.806
BECAUSE IT WAS THE LEAST
03:45:19.873 --> 03:45:22.675
EXPENSIVE ALTERNATIVE OF EITHER
03:45:22.742 --> 03:45:24.277
GOING NORTH OR SOUTH
03:45:24.344 --> 03:45:24.577
[inaudible]
03:45:24.644 --> 03:45:27.413
ALRIGHT.
03:45:27.480 --> 03:45:28.081
AND I I THINK BY --
03:45:28.147 --> 03:45:30.116
LAST.
03:45:30.183 --> 03:45:31.751
LINE OF QUESTIONING IS IS AT TWO
03:45:31.818 --> 03:45:33.419
AS TO MY EARLIER CONVERSATION
03:45:33.486 --> 03:45:38.925
WITH THE STATE AUDITOR ABOUT --
03:45:38.992 --> 03:45:40.360
THE STATE.
03:45:40.426 --> 03:45:41.861
TO HIGH SPEED RAIL AUTHORITY
03:45:41.928 --> 03:45:43.863
HOLDING CONTRACTORS AND
03:45:43.930 --> 03:45:45.932
CONSULTANTS ACCOUNTABLE --
03:45:45.999 --> 03:45:47.066
FOR ANY OF THE PAST COST
03:45:47.133 --> 03:45:49.569
OVERRUNS OR THE PROJECT DELAYS --
03:45:49.636 --> 03:45:52.238
WE WOULD YOU AGREE WITH THE
03:45:52.305 --> 03:45:53.573
AUDITOR'S ASSESSMENT THAT.
03:45:53.640 --> 03:45:54.507
TO THAT --
03:45:54.574 --> 03:45:56.009
AS FAR AS THEY WERE ABLE TO FIND
03:45:56.075 --> 03:45:57.076
THAT THERE WAS ONLY ONE INSTANCE
03:45:57.143 --> 03:46:00.413
OF OF A CONTRACTOR BEING HELD
03:46:00.480 --> 03:46:02.882
ACCOUNTABLE IN TERMS OF A
03:46:02.949 --> 03:46:04.951
CORRECTIVE ACTION IS SHE BEING
03:46:05.018 --> 03:46:06.286
ISSUE WHEN WE ACTUALLY.
03:46:06.352 --> 03:46:08.488
IN IS THAT WOULD BE THE POLICY
03:46:08.554 --> 03:46:10.957
OF THIS BOARD THAT WE THAT THERE
03:46:11.024 --> 03:46:13.526
THEY WOULD ABSOLUTELY BE HELD
03:46:13.593 --> 03:46:14.827
THAT'S MY QUESTION MY QUESTION
03:46:14.894 --> 03:46:16.095
IS AT EIGHT WOULD YOU AGREE THAT
03:46:16.162 --> 03:46:18.364
THERE IS ONLY ONE INSTANCE OF OF
03:46:18.431 --> 03:46:20.300
CORRECTION CORRECTIVE ACTION
03:46:20.366 --> 03:46:21.768
BEING TAKEN.
03:46:21.834 --> 03:46:23.903
NO SIR NO I YEAH I DON'T I DON'T
03:46:23.970 --> 03:46:24.904
WE HAVE THE ANSWER TO THAT WE
03:46:24.971 --> 03:46:25.872
SENT OVER --
03:46:25.939 --> 03:46:26.806
AND GET IS --
03:46:26.873 --> 03:46:27.674
IT'S A LITTLE BIT THINK OF
03:46:27.740 --> 03:46:29.609
COMMUNICATION HERE THE GARCIA
03:46:29.676 --> 03:46:31.077
CORRECTIVE ACTION DEFINITION OF
03:46:31.144 --> 03:46:32.312
DELIVERABLES.
03:46:32.378 --> 03:46:34.514
BUT THERE'S BEEN OVER.
03:46:34.580 --> 03:46:36.683
A DOZEN LETTERS SENT TO THE R.
03:46:36.749 --> 03:46:40.586
E. P. WITH REGARDS TO
03:46:40.653 --> 03:46:42.088
PERFORMANCE.
03:46:42.155 --> 03:46:42.956
AND I KNOW THERE'S MORE THERE'S
03:46:43.022 --> 03:46:44.223
A LEAST ONE BECAUSE I PERSONALLY
03:46:44.290 --> 03:46:45.258
SIGNED WENT OUT TO THE PRESIDENT
03:46:45.325 --> 03:46:49.162
OF W. S. P. ON THIS EXACT ISSUE.
03:46:49.228 --> 03:46:51.798
SO AGAIN IS IT IT IT'S IT'S
03:46:51.864 --> 03:46:53.533
APPLE LEVEL OF THE CEO AND THE
03:46:53.599 --> 03:46:58.604
SEAL.
03:46:58.671 --> 03:47:02.241
ALRIGHT SO --
03:47:02.308 --> 03:47:03.876
ALL RIGHT WELL.
03:47:03.943 --> 03:47:04.911
I'M LIKE TO PASS OUT ITS A WIN
03:47:04.978 --> 03:47:08.014
OF THE BENEFITS OF OF THIS AUDIT
03:47:08.081 --> 03:47:10.383
COMMISSIONED BY THE LEGISLATURE
03:47:10.450 --> 03:47:12.618
IS THAT WE HAVE --
03:47:12.685 --> 03:47:14.053
FIRST YEAR AGREEMENT --
03:47:14.120 --> 03:47:15.521
IT'S MY UNDERSTANDING THAT THE
03:47:15.588 --> 03:47:17.023
HIGH SPEED RAIL AUTHORITY IS
03:47:17.090 --> 03:47:18.758
ACCEPTING ALL OF THE
03:47:18.825 --> 03:47:20.460
RECOMMENDATIONS OF THE THE
03:47:20.526 --> 03:47:22.462
AUDITOR --
03:47:22.528 --> 03:47:24.230
AND THAT THERE ARE SPECIFIC --
03:47:24.297 --> 03:47:26.566
TIME LINES AND BENCHMARKS FOR
03:47:26.632 --> 03:47:28.167
THE HIGH SPEED RAIL AUTHORITY TO
03:47:28.234 --> 03:47:30.703
REPORT BACK --
03:47:30.770 --> 03:47:32.939
AND SO.
03:47:33.006 --> 03:47:35.541
WE WILL BE LOOKING FORWARD --
03:47:35.608 --> 03:47:36.943
TO THE HIGH SPEED RAIL
03:47:37.010 --> 03:47:38.778
AUTHORITIES DEMONSTRATED
03:47:38.845 --> 03:47:40.480
PROGRESS AND IT STATED
03:47:40.546 --> 03:47:42.515
COMMITMENT --
03:47:42.582 --> 03:47:43.783
TO ADOPT ALL OF THE AUDITOR'S.
03:47:43.850 --> 03:47:47.053
RECOMMENDATIONS.
03:47:47.120 --> 03:47:47.653
THANK YOU VERY MUCH THANK YOU
03:47:47.720 --> 03:47:50.690
SIR.
03:47:50.757 --> 03:47:51.791
YOU EVER THINK YOU'D THINK YOU'D.
03:47:51.858 --> 03:47:52.458
LIKE TO OPEN UP --
03:47:52.525 --> 03:47:54.060
FOR FOR PUBLIC COMMENTS --
03:47:54.127 --> 03:47:59.198
BEFORE WE START WANT.
03:47:59.265 --> 03:48:00.299
TO ASK YOU THAT EACH SPEAKER
03:48:00.366 --> 03:48:01.401
KEEP THE COMMENTS TO NO MORE
03:48:01.467 --> 03:48:16.549
THAN TWO MINUTES.
03:48:16.616 --> 03:48:18.184
HEY GOOD AFTERNOON MY NAME IS
03:48:18.251 --> 03:48:19.819
ROLAND ROAD BROWN I'M FROM SAN
03:48:19.886 --> 03:48:22.855
JOSE AND THE REASON I'M A
03:48:22.922 --> 03:48:25.925
ADDRESSING YOU IS THAT I BELIEVE.
03:48:25.992 --> 03:48:27.794
WE CAN CONNECTS TO LINCOLN
03:48:27.860 --> 03:48:30.396
VALLEY TO FRESNO WITHIN THE
03:48:30.463 --> 03:48:33.232
EXISTING FUNDING APOLO WHICH ON
03:48:33.299 --> 03:48:34.600
THE THAN THE ADDITIONAL FUNDING.
03:48:34.667 --> 03:48:36.002
BUT WE REALLY GOT TO START
03:48:36.069 --> 03:48:37.303
RETHINKING MY WHAT WHAT YOU
03:48:37.370 --> 03:48:38.704
DOING SO I HAVE PREPARED A FEW
03:48:38.771 --> 03:48:39.705
THINGS HERE.
03:48:39.772 --> 03:48:40.973
NOW THE ONE THING IS THAT YOU
03:48:41.040 --> 03:48:42.875
GOT TO UNDERSTAND I'M GONNA TRY
03:48:42.942 --> 03:48:44.277
TO EXPLAIN THIS TO YOU IN TWO
03:48:44.343 --> 03:48:45.311
MINUTES WITHOUT ON THEIR
03:48:45.378 --> 03:48:46.179
CREDENTIALS.
03:48:46.245 --> 03:48:49.015
MY RECOMMENDATION TO YOU AND
03:48:49.082 --> 03:48:52.618
OPPOSE OF AN INDEPENDENT
03:48:52.685 --> 03:48:55.321
ENGINEERING ALL DATA.
03:48:55.388 --> 03:48:57.190
NOT JUST ANOTHER PEER REVIEW
03:48:57.256 --> 03:48:59.025
PANEL.
03:48:59.092 --> 03:49:00.726
SO -- VERY
03:49:00.793 --> 03:49:03.963
BRIEFLY IN THE NORTH --
03:49:04.030 --> 03:49:05.631
I'M GOING TO GO OVER IT IS VERY
03:49:05.698 --> 03:49:07.133
QUICKLY I'M VERY FRUSTRATED DAY
03:49:07.200 --> 03:49:08.968
BECAUSE THE AUTHORITY OF JUST
03:49:09.035 --> 03:49:10.336
APPROVED AND ALIGNMENTS.
03:49:10.403 --> 03:49:11.304
THAT.
03:49:11.370 --> 03:49:12.738
MANDATES TWENTY EIGHT MILES OF
03:49:12.805 --> 03:49:14.107
TUNNELS BETWEEN BURBANK IN
03:49:14.173 --> 03:49:15.341
PALMDALE.
03:49:15.408 --> 03:49:17.009
COMPLETELY IGNORING THE FACT
03:49:17.076 --> 03:49:18.811
THAT BACK IN TWO THOUSAND AND
03:49:18.878 --> 03:49:20.179
TWO WE KNEW HOW TO CONNECT
03:49:20.246 --> 03:49:23.116
BURBANK TO BAKERSFIELD WITH
03:49:23.182 --> 03:49:25.351
EIGHTEEN MILES OF TUNNELS.
03:49:25.418 --> 03:49:26.686
NOT ONLY THAT WE HAD THE NOT
03:49:26.752 --> 03:49:27.920
GREAT A LYMAN THAT CROSSES THE
03:49:27.987 --> 03:49:28.921
FOLD AND PROVIDED THE
03:49:28.988 --> 03:49:31.290
CONNECTIVITY TO OUR LANCASTER
03:49:31.357 --> 03:49:33.826
AND PALMDALE --
03:49:33.893 --> 03:49:36.562
NOW MOVING TO THE NOLES.
03:49:36.629 --> 03:49:38.431
I BELIEVE I HAVE SOMETHING TO DO
03:49:38.498 --> 03:49:40.399
WITH FAMILY TO GET WELL AND AND
03:49:40.466 --> 03:49:43.436
I AM THANKFUL TO DEAL THIRTY FOR
03:49:43.503 --> 03:49:44.504
LISTENING TO WHAT I HAVE TO SAY.
03:49:44.570 --> 03:49:45.404
BUT I DO BELIEVE THAT WE NOW
03:49:45.471 --> 03:49:47.607
HAVE TO DO IS TO CONTINUE WHAT
03:49:47.673 --> 03:49:49.075
WE STOPPED IT.%
03:49:49.142 --> 03:49:51.244
AND GO TO HOLLISTER THE THE
03:49:51.310 --> 03:49:52.378
LINES ALREADY EIGHT UNION
03:49:52.445 --> 03:49:54.514
PACIFIC SOLD A LINE THREE YEARS
03:49:54.580 --> 03:49:56.315
AGO WHY AREN'T WE USING IT.
03:49:56.382 --> 03:49:58.084
AND THEN AFTER THAT.
03:49:58.151 --> 03:49:59.785
FORGET BUDGET DEAL BASS FORGET
03:49:59.852 --> 03:50:02.288
THE TWELVE MILES OF TUNNELS USE
03:50:02.355 --> 03:50:04.657
PAN NO J. PASS.
03:50:04.724 --> 03:50:08.728
THESE LITTLE ALL NEW COMING
03:50:08.794 --> 03:50:09.862
REQUIRED.
03:50:09.929 --> 03:50:10.963
TO AND WHAT GETS EVEN MORE
03:50:11.030 --> 03:50:12.498
INTERESTING IS THAT BY THE TIME
03:50:12.565 --> 03:50:13.766
YOU GET --
03:50:13.833 --> 03:50:15.401
TO I FIVE YOUNG NOW 440- MILES
03:50:15.468 --> 03:50:19.572
SOUTH OF IF YOU CARRY ON DOWN I
03:50:19.639 --> 03:50:20.973
FIVE YOU SEE IF TWELVE MINUTES.
03:50:21.040 --> 03:50:22.542
BETWEEN SAN FRANCISCO AND LOS
03:50:22.608 --> 03:50:25.411
ANGELES WHICH YOU CAN CARRY ON
03:50:25.478 --> 03:50:26.245
THREE TO FRESNO.
03:50:26.312 --> 03:50:29.448
AND NOW GUESS WHAT MORE BLENDING.
03:50:29.515 --> 03:50:30.516
THE NOT YOUR THREE G. DID NOT
03:50:30.583 --> 03:50:33.152
KNOW.
03:50:33.219 --> 03:50:33.819
THAT IT WAS A LINE TO MEN DON'T.
03:50:33.886 --> 03:50:38.424
THANK YOU SIR.
03:50:38.491 --> 03:50:41.327
JUST SAID I JUST SENT OVER FROM
03:50:41.394 --> 03:50:42.662
AMERICA NOTE SHE PASSIVELY.
03:50:42.728 --> 03:50:44.630
I WORKED UP ON A CATTLE RANCH
03:50:44.697 --> 03:50:49.902
WHEN I WAS A TEENAGER OF US.
03:50:49.969 --> 03:50:54.707
I HATED THAT WORK ACROSS.
03:50:54.774 --> 03:50:56.976
IS REAL HOT AND DRY IT.
03:50:57.043 --> 03:50:58.945
BUT I I'M VERY FAMILIAR WITH THE
03:50:59.011 --> 03:51:00.913
THAT AREA.
03:51:00.980 --> 03:51:02.281
MISTER CHAIRMAN MEMBERS OF THE
03:51:02.348 --> 03:51:02.882
COMMITTEE OKAY HENRY PRAYER
03:51:02.949 --> 03:51:04.217
FORMER FRESNO COUNTY SUPERVISOR
03:51:04.283 --> 03:51:04.917
AND VERY INVOLVED IN THIS
03:51:04.984 --> 03:51:05.851
PROJECT FOR SEVEN YEARS WHILE I
03:51:05.918 --> 03:51:06.285
WAS A SUPERVISOR.
03:51:06.352 --> 03:51:07.753
FIRST I WANT TO COMMEND YOU FOR
03:51:07.820 --> 03:51:08.988
FOR INITIATING THIS REPORT I
03:51:09.055 --> 03:51:11.190
THINK IT'S IT'S WHITES IS TIMELY
03:51:11.257 --> 03:51:12.458
AND IS JUST SETS THE PATH FOR
03:51:12.525 --> 03:51:14.427
CONTINUED SUCCESS I BELIEVE ON
03:51:14.493 --> 03:51:15.661
ON THIS PROJECT.
03:51:15.728 --> 03:51:17.997
THE THEY DO IDENTIFY STRUCTURAL
03:51:18.064 --> 03:51:18.631
ISSUES THAT ARE JUST TOUCH ON
03:51:18.698 --> 03:51:20.666
REAL BRIEFLY AT THE END BUT I
03:51:20.733 --> 03:51:22.168
JUST WANT TO DISAGREE SLIGHTLY
03:51:22.235 --> 03:51:23.869
AND THAT WASN'T A GOOD IDEA BAD
03:51:23.936 --> 03:51:25.271
IDEA TO START A CENTRAL VALLEY I
03:51:25.338 --> 03:51:26.672
THINK WAS ABSOLUTELY.
03:51:26.739 --> 03:51:28.207
A GREAT IDEA FOR ALL THE REASONS
03:51:28.274 --> 03:51:29.742
THAT ALREADY BEEN STATUS I WON'T
03:51:29.809 --> 03:51:30.776
RESTATE THEM.
03:51:30.843 --> 03:51:32.945
BUT BUT CERTAINLY --
03:51:33.012 --> 03:51:35.281
BEING INVOLVED IN COMING TO MAY
03:51:35.348 --> 03:51:36.749
TEENS WHERE THE DECISION MAKING
03:51:36.816 --> 03:51:38.284
WAS MADE TO MAKE THOSE FIRST
03:51:38.351 --> 03:51:39.785
STEPS IT WAS A DELIBERATE
03:51:39.852 --> 03:51:42.288
PROCESS AND THERE WAS SOLID
03:51:42.355 --> 03:51:42.788
BACKGROUND TO MAKE THOSE
03:51:42.855 --> 03:51:43.956
DECISIONS SO.
03:51:44.023 --> 03:51:46.192
I WILL SUPPORT VERY GOOD
03:51:46.259 --> 03:51:47.126
DECISION TO START A CENTRAL
03:51:47.193 --> 03:51:47.627
VALLEY.
03:51:47.693 --> 03:51:49.595
BUT ONE ASSEMBLY MEMBER --
03:51:49.662 --> 03:51:50.563
OR IS.
03:51:50.630 --> 03:51:51.964
WHO IS NOT HERE BUT YOU KNOW
03:51:52.031 --> 03:51:53.833
KEPT TALKING ABOUT SPEED TIME
03:51:53.899 --> 03:51:55.501
AND COMPETITIVENESS AND
03:51:55.568 --> 03:51:57.336
CERTAINLY WE WANT TO SEE THAT IN
03:51:57.403 --> 03:51:59.272
ANYTHING THAT THAT WE DO --
03:51:59.338 --> 03:52:01.607
BUT AS HE WAS SPEAKING AND OTHER
03:52:01.674 --> 03:52:03.309
FOLKS MAKING COMMENT I GOT ON MY
03:52:03.376 --> 03:52:04.877
EXPEDIA COUNTY AND I LOOKED AT A
03:52:04.944 --> 03:52:06.245
FLIGHT FROM FRESNO FROM ON
03:52:06.312 --> 03:52:07.680
DECEMBER FIRST COMING BACK ON
03:52:07.747 --> 03:52:10.116
DECEMBER THIRD. FOR FIVE HUNDRED
03:52:10.182 --> 03:52:10.950
EIGHTY FOUR DOLLARS.
03:52:11.017 --> 03:52:12.485
YOU COULD GET THERE IN SEVEN
03:52:12.551 --> 03:52:14.020
HOURS AND SIX BENEFIT TO STOP
03:52:14.086 --> 03:52:15.855
FRESNO TO SAN FRANCISCO TO LAS
03:52:15.921 --> 03:52:18.357
VEGAS. TO LOS ANGELES NOW YEAH
03:52:18.424 --> 03:52:20.026
THE TWO HOURS WAITING TIME GOING
03:52:20.092 --> 03:52:21.794
TO THE AIRPORT THAT'S OVER NINE
03:52:21.861 --> 03:52:23.896
HOURS TO GET DAILY FROM FRESNO.
03:52:23.963 --> 03:52:25.364
BUT IF YOU WANT TO PAY EIGHT
03:52:25.431 --> 03:52:26.899
HUNDRED AND TWENTY THREE DOLLARS.
03:52:26.966 --> 03:52:28.334
ARE YOU CAN TAKE A DIRECT FLIGHT
03:52:28.401 --> 03:52:29.702
FOR AN HOUR AND FIFTEEN MINUTES
03:52:29.769 --> 03:52:31.237
AT THE TWO HOURS OF WAIT TIME
03:52:31.304 --> 03:52:32.672
NOW YOU HAVE THREE HOURS --
03:52:32.738 --> 03:52:34.674
TO GET FROM FRESNO LA FOR FOR
03:52:34.740 --> 03:52:38.644
THAT MUCH MONEY SO I THINK IT
03:52:38.711 --> 03:52:40.046
UNDERSCORES THE FACT THAT.
03:52:40.112 --> 03:52:41.280
THIS PROJECT HAS MANY MANY
03:52:41.347 --> 03:52:42.615
BENEFITS TO IT AND AND A LOT OF
03:52:42.682 --> 03:52:44.350
IT IS THE ECONOMIC BENEFIT THAT
03:52:44.417 --> 03:52:44.950
GIVES US TO CONNECT IN THIS
03:52:45.017 --> 03:52:46.152
OTHER PARTS OF THE STATE WHICH
03:52:46.218 --> 03:52:47.420
IS WHY.
03:52:47.486 --> 03:52:48.454
THE DECISION WAS MADE TO START
03:52:48.521 --> 03:52:50.089
IN THE CENTRAL VALLEY TO GIVE
03:52:50.156 --> 03:52:51.390
THAT CONNECTIVITY.
03:52:51.457 --> 03:52:53.225
AND OF THE SOLOMON ARAMBULA SAID
03:52:53.292 --> 03:52:56.929
WHEN YOU GET IN THE AT FIFTY
03:52:56.996 --> 03:52:58.264
FIVE TO FIFTY EIGHT MINUTES IS A
03:52:58.331 --> 03:52:59.932
GAME CHANGER FOR US ECONOMIC SO.
03:52:59.999 --> 03:53:01.567
BUT DOESN'T MEAN WE WE HAVE TO
03:53:01.634 --> 03:53:02.368
BE SMART ABOUT HOW WE SPEND OUR
03:53:02.435 --> 03:53:03.803
MONEY -- HOW
03:53:03.869 --> 03:53:05.604
WE COULD PUT THE MONIES TOGETHER?
03:53:05.671 --> 03:53:06.972
TO COMPLETE THE PROJECT BUT THIS
03:53:07.039 --> 03:53:08.741
IS DEFINITELY A NO BRAINER NOT
03:53:08.808 --> 03:53:10.476
JUST FOR THE STATE OF CALIFORNIA
03:53:10.543 --> 03:53:12.445
BEFORE UNITED STATES OF AMERICA.
03:53:12.511 --> 03:53:13.045
LETTER THE LETTING I JUST SAY
03:53:13.112 --> 03:53:14.613
I'M SORRY VERY BRIEFLY IT IS
03:53:14.680 --> 03:53:15.548
THAT.
03:53:15.614 --> 03:53:16.382
IS THAT --
03:53:16.449 --> 03:53:19.719
THE THE THE ISSUE OF STRUCTURAL.
03:53:19.785 --> 03:53:23.222
VERY BIG ISSUE AND HAVING BEEN
03:53:23.289 --> 03:53:24.523
IN GOVERNMENT FOR MANY YEARS.
03:53:24.590 --> 03:53:26.826
WHEN YOU HAD WHEN YOU HAVE A 20%
03:53:26.892 --> 03:53:28.861
21% VACANCY RATE AT THE
03:53:28.928 --> 03:53:29.895
AUTHORITY NOW A SHOCK ACTUALLY
03:53:29.962 --> 03:53:31.030
BE HERE THAT NUMBER TODAY I
03:53:31.097 --> 03:53:32.131
DON'T KNOW HOW YOU GET THAT JOB
03:53:32.198 --> 03:53:33.532
DONE WHEN YOU HAVE THAT HIGH
03:53:33.599 --> 03:53:35.067
VACANCY RATE BUT WHEN YOU LOOK
03:53:35.134 --> 03:53:36.469
AT HOW LONG IT TAKES TO FILL A?
03:53:36.535 --> 03:53:38.437
POSITION IN ANY GOVERNMENT
03:53:38.504 --> 03:53:40.339
STRUCTURE SIX TO NINE MONTHS IF
03:53:40.406 --> 03:53:42.007
YOU'RE LUCKY YOU CAN OPERATE
03:53:42.074 --> 03:53:43.209
THAT WAY --
03:53:43.275 --> 03:53:45.978
SO IF I WERE TO ASK YOU TO TO
03:53:46.045 --> 03:53:47.213
USE THE AUTHORITY YOU HAVE AS
03:53:47.279 --> 03:53:49.115
THE LEGISLATURE TO MAKE SYSTEMIC
03:53:49.181 --> 03:53:50.349
CHANGES WITHIN THE STATE
03:53:50.416 --> 03:53:52.451
BUREAUCRACY WEATHER'S DEPARTMENT
03:53:52.518 --> 03:53:53.753
GENERAL SERVICES OR OR HUMAN
03:53:53.819 --> 03:53:55.020
RESOURCES.
03:53:55.087 --> 03:53:57.123
CHANGE THE PROCESSES MAKE THEM
03:53:57.189 --> 03:53:58.891
AND GIVE THEM THE ABILITY THESE
03:53:58.958 --> 03:54:00.359
FOLKS THE ABILITY TO HIRE PEOPLE
03:54:00.426 --> 03:54:01.794
QUICKLY SO THAT THEY CAN GET THE
03:54:01.861 --> 03:54:02.695
JOB DONE.
03:54:02.762 --> 03:54:05.498
BUT THANK YOU AGAIN FOR FOR THIS
03:54:05.564 --> 03:54:07.266
HEARING AND THANK SILVA.
03:54:07.333 --> 03:54:16.108
THANK.
03:54:16.175 --> 03:54:17.109
GOOD AFTERNOON SENATOR MEMBERS
03:54:17.176 --> 03:54:18.511
OF THE COMMITTEE MY NAME IS
03:54:18.577 --> 03:54:19.612
MICHAEL MURPHY I'M CEO OF SORE
03:54:19.678 --> 03:54:21.714
ENVIRONMENTAL CONSULTING.
03:54:21.781 --> 03:54:23.416
AND IT'S ACTUALLY IN FRESNO
03:54:23.482 --> 03:54:25.117
CALIFORNIA.
03:54:25.184 --> 03:54:26.685
IN TWENTY FOURTEEN I SORT OF THE
03:54:26.752 --> 03:54:27.753
COMPANY IN TWENTY FIFTEEN ALMOST
03:54:27.820 --> 03:54:28.354
LEFT -- THE
03:54:28.421 --> 03:54:30.156
CENTRAL VALLEY FOR THE PURPOSES
03:54:30.222 --> 03:54:31.724
THAT YOU DESCRIBED EARLIER WHICH
03:54:31.791 --> 03:54:32.191
WAS THERE WASN'T MUCH
03:54:32.258 --> 03:54:33.459
OPPORTUNITY THERE.
03:54:33.526 --> 03:54:34.927
LIKELY I RECEIVED A CALL FROM
03:54:34.994 --> 03:54:36.495
THE HIGH SPEED RAIL.
03:54:36.562 --> 03:54:39.265
AND BECAME THE ENVIRONMENTAL --
03:54:39.331 --> 03:54:40.900
OVERSIGHT MANAGER FOR
03:54:40.966 --> 03:54:42.435
CONSTRUCTION PACKAGE.
03:54:42.501 --> 03:54:44.003
ONE WITH THAT I WORK WITH A
03:54:44.069 --> 03:54:45.638
SMALL BUSINESS DIED LEADS FOR
03:54:45.704 --> 03:54:47.540
THE HIGH SPEED RAIL.
03:54:47.606 --> 03:54:50.075
BUILT MY COMPANY MET SOME PEOPLE
03:54:50.142 --> 03:54:52.311
I KNOW HAVE I THINK FOURTEEN OF
03:54:52.378 --> 03:54:54.213
MASTER SERVICE AGREEMENTS WITH
03:54:54.280 --> 03:54:56.048
THE END OF THE CENTRAL VALLEY.
03:54:56.115 --> 03:54:58.184
FIVE OF WHICH ARE WITH THE TOP
03:54:58.250 --> 03:54:58.751
TEN ENVIRONMENT FIRMS IN THE
03:54:58.818 --> 03:55:00.052
COUNTRY.
03:55:00.119 --> 03:55:01.654
AND ALSO HAVE BEEN ABLE TO
03:55:01.720 --> 03:55:04.390
ACQUIRE --
03:55:04.457 --> 03:55:06.592
FOURTEEN EMPLOYEES AS OF TWENTY
03:55:06.659 --> 03:55:07.927
NINETEEN SO BE BRINGING ON TO
03:55:07.993 --> 03:55:09.562
MORE THAN.
03:55:09.628 --> 03:55:10.129
TWENTY NINETEEN SO THE SMALL
03:55:10.196 --> 03:55:11.964
BUSINESS PORTION OF THE HIGH
03:55:12.031 --> 03:55:13.499
SPEED RAIL IS WORKING.
03:55:13.566 --> 03:55:15.468
IT'S ALLOWING ME TO STAY IN THE
03:55:15.534 --> 03:55:17.203
AREA THAT I WANT TO HIRE THOSE
03:55:17.269 --> 03:55:17.570
PEOPLE THAT --
03:55:17.636 --> 03:55:18.771
THAT I BELIEVE.
03:55:18.838 --> 03:55:21.807
IS MY COMMUNITY OBLIGATION
03:55:21.874 --> 03:55:23.075
WITHIN THE COMMUNITY KEEP THOSE
03:55:23.142 --> 03:55:24.977
PEOPLE IN IN TOWN WHERE THEIR
03:55:25.044 --> 03:55:26.045
FRIENDS ARE WHERE THEIR FAMILIES
03:55:26.111 --> 03:55:26.445
ARE.
03:55:26.512 --> 03:55:27.947
AND MAKE A CAREER THERE SO I
03:55:28.013 --> 03:55:30.382
JUST WANT TO COME UP AND THANK
03:55:30.449 --> 03:55:32.017
YOU FOR SUPPORTING THOSE SMALL
03:55:32.084 --> 03:55:33.519
BUSINESS MEASURES.
03:55:33.586 --> 03:55:34.553
AND KNOW THAT.
03:55:34.620 --> 03:55:36.021
WERE TIED TOGETHER WITH THE
03:55:36.088 --> 03:55:37.790
AUTHORITY YOU KNOW AS A SMALL
03:55:37.857 --> 03:55:39.225
BUSINESS AS A CONSULTING FIRM
03:55:39.291 --> 03:55:40.493
WHAT WE DO.
03:55:40.559 --> 03:55:42.828
IS IS BY REPUTATION AND OUR
03:55:42.895 --> 03:55:44.129
REPUTATION IS TIED TO THE
03:55:44.196 --> 03:55:45.431
AUTHORITY SO WE WORK AS HARD AS
03:55:45.498 --> 03:55:46.999
WE POSSIBLY CAN TO ENSURE THE
03:55:47.066 --> 03:55:48.234
SUCCESS.
03:55:48.300 --> 03:55:50.302
OF THE AUTHORITY AND THE PROJECT
03:55:50.369 --> 03:55:51.770
THAT WE REPRESENT.
03:55:51.837 --> 03:55:53.906
THANK YOU VERY MUCH THANK YOU.
03:55:53.973 --> 03:55:56.342
I SEE NO FURTHER PUBLIC COMMENTS --
03:55:56.408 --> 03:55:58.577
WE LIKE TO GIVE AN OPPORTUNITY --
03:55:58.644 --> 03:55:59.845
TO COMMITTEE MEMBERS ARE STILL
03:55:59.912 --> 03:56:01.614
HERE FOR ANY CLOSING COMMENTS
03:56:01.680 --> 03:56:04.517
MISTER CHAIRMAN.
03:56:04.583 --> 03:56:05.384
THANK YOU MISTER CHAIR AND I
03:56:05.451 --> 03:56:07.253
APPRECIATE THE TIME EVERYONE
03:56:07.319 --> 03:56:07.853
TOOK TO COME HERE AND TESTIFY
03:56:07.920 --> 03:56:09.121
TODAY.
03:56:09.188 --> 03:56:10.322
I LOOK FORWARD TO THE QUARTERLY
03:56:10.389 --> 03:56:11.423
REPORTS --
03:56:11.490 --> 03:56:12.725
THE LARGEST THE AUTHORITY WILL
03:56:12.791 --> 03:56:14.527
BE SUBMITTING TO LEGISLATURE
03:56:14.593 --> 03:56:16.695
STARTING IN JANUARY --
03:56:16.762 --> 03:56:17.997
I BELIEVE ME I'LL BE
03:56:18.063 --> 03:56:19.632
SCRUTINIZING THEM.
03:56:19.698 --> 03:56:20.966
ALSO LOOK FORWARD TO HEARING
03:56:21.033 --> 03:56:22.034
DIRECTLY FROM THE AUTHORITY
03:56:22.101 --> 03:56:23.202
BOARD ON THE PROGRESS MADE
03:56:23.269 --> 03:56:25.070
TOWARD ADDRESSING THE ISSUES IN
03:56:25.137 --> 03:56:27.139
THE AUDIT IN THE NOT ACCEPTING.
03:56:27.206 --> 03:56:29.341
THAT THERE ARE INITIAL.
03:56:29.408 --> 03:56:31.911
PROBLEMS GOING FORWARD.
03:56:31.977 --> 03:56:33.112
LASTLY I WANT TO STRESS THAT THE
03:56:33.178 --> 03:56:35.114
PEOPLE OF CALIFORNIA ARE LOOKING
03:56:35.180 --> 03:56:38.551
TO US [inaudible] FOR ANSWERS.
03:56:38.617 --> 03:56:39.852
I WANT TO BE ABLE TO TELL MY
03:56:39.919 --> 03:56:41.086
CONSTITUENTS AND ALL
03:56:41.153 --> 03:56:42.988
CALIFORNIANS.
03:56:43.055 --> 03:56:44.690
THAT THEY'RE DOING ARE THAT WE
03:56:44.757 --> 03:56:45.824
ARE DOING OUR DUE DILIGENCE AND
03:56:45.891 --> 03:56:46.825
BEING RESPONSIBLE STEWARDS OF
03:56:46.892 --> 03:56:50.162
THEIR MONEY.
03:56:50.229 --> 03:56:53.365
IN I WILL ENSURE YOU THAT THE
03:56:53.432 --> 03:56:54.733
TWENTY NINETEEN YEAR IS GOING TO
03:56:54.800 --> 03:56:56.201
BE A VIGOROUS YEAR OF OVERSIGHT
03:56:56.268 --> 03:56:57.136
PLUS.
03:56:57.202 --> 03:56:58.637
CORRECTIVE LEGISLATION.
03:56:58.704 --> 03:57:01.006
OF LOOKING FORWARD --
03:57:01.073 --> 03:57:02.942
TO THAT PROCESS GOING FORWARD.
03:57:03.008 --> 03:57:04.677
I ALSO WANT TO MENTION IS IS
03:57:04.743 --> 03:57:07.179
BACK IN THE YOUR TO AGO THERE
03:57:07.246 --> 03:57:08.647
WAS AN INDIVIDUAL WHO WAS LET GO
03:57:08.714 --> 03:57:09.648
FROM THE AUTHORITY.
03:57:09.715 --> 03:57:11.150
THAT WAS JEFF ROUSE.
03:57:11.216 --> 03:57:13.218
I THINK THAT WAS A MISTAKE.
03:57:13.285 --> 03:57:16.422
JEFF WAS A PROJECT A AND
03:57:16.488 --> 03:57:18.524
UNDERSTANDING THAT THAT THE THE
03:57:18.591 --> 03:57:20.125
BUCK STOPS WITH THE THE
03:57:20.192 --> 03:57:21.360
INDIVIDUAL AT THE TOP.
03:57:21.427 --> 03:57:23.195
I REALLY FIRMLY BELIEVE IT
03:57:23.262 --> 03:57:23.862
SHOULD HAVE BEEN THE CHAIRMAN OF
03:57:23.929 --> 03:57:25.264
THE BOARD DAN RICHARD SHOULD
03:57:25.331 --> 03:57:26.565
HAVE BEEN LET GO.
03:57:26.632 --> 03:57:28.901
AS AS THE PERSON RESPONSIBLE FOR
03:57:28.968 --> 03:57:30.803
ALTMAN OVERSIGHT OF ALL OF THIS
03:57:30.869 --> 03:57:32.838
FIASCO HAS BEEN GOING ON AND FOR
03:57:32.905 --> 03:57:33.906
THAT I CALL FOR HIS RESIGNATION
03:57:33.973 --> 03:57:35.507
GOING FORWARD.
03:57:35.574 --> 03:57:37.142
I THINK IT'S APPROPRIATE.
03:57:37.209 --> 03:57:38.444
AND I THINK THE PEOPLE OF
03:57:38.510 --> 03:57:40.179
CALIFORNIA DESERVE UNDERSTAND
03:57:40.245 --> 03:57:41.981
THAT AT LEAST THERE WAS ONE
03:57:42.047 --> 03:57:43.082
ACTION TAKEN.
03:57:43.148 --> 03:57:44.717
IN THE APPROPRIATE FASHION FOR
03:57:44.783 --> 03:57:46.485
THIS GOING FORWARD.
03:57:46.552 --> 03:57:48.053
AND I THINK THE BOARD NEEDS TO
03:57:48.120 --> 03:57:50.656
LOOK FORWARD. TO BETTER BETTER
03:57:50.723 --> 03:57:52.524
REPRESENTATION FROM THE CHAIRMAN
03:57:52.591 --> 03:57:53.859
BUT ALSO KNOWING THAT.
03:57:53.926 --> 03:57:56.795
THEY HIRED A CONSTRUCTION STE I
03:57:56.862 --> 03:57:59.064
HAVE A LOT OF FAITH IN WHAT JOE
03:57:59.131 --> 03:58:00.399
AND THE TIME THAT HE AND I SPENT
03:58:00.466 --> 03:58:01.533
TOGETHER.
03:58:01.600 --> 03:58:02.935
I HAVE A FEELING THAT HE HAS AN
03:58:03.002 --> 03:58:04.370
ABILITY TO BRING THIS BACK ON
03:58:04.436 --> 03:58:05.938
TRACK.
03:58:06.005 --> 03:58:07.973
BUT SOMEBODY WAS RESPONSIBLE FOR
03:58:08.040 --> 03:58:09.742
THIS AND ULTIMATELY I THINK THAT
03:58:09.808 --> 03:58:11.310
INDIVIDUAL NEEDS TO GO.
03:58:11.377 --> 03:58:13.012
THAT MISTER CHAIR I THANK YOU.
03:58:13.078 --> 03:58:14.613
FOR MAKING SURE THAT WE HAD AN
03:58:14.680 --> 03:58:16.048
OPPORTUNITY TO WEIGH OUR VOICE
03:58:16.115 --> 03:58:17.216
INTO THIS.
03:58:17.282 --> 03:58:18.283
AND THAT --
03:58:18.350 --> 03:58:20.085
LOOK FOR TO WORKING WITH YOU AND
03:58:20.152 --> 03:58:21.020
SENATOR BILL.
03:58:21.086 --> 03:58:22.955
OF MOVING FORWARD TO MAKE SURE
03:58:23.022 --> 03:58:23.455
THE PEOPLE'S MONEY SPENT
03:58:23.522 --> 03:58:26.558
CORRECTLY AND THEY GET EXACTLY
03:58:26.625 --> 03:58:31.030
WHAT THEY PAY FOR THANK YOU.
03:58:31.096 --> 03:58:31.830
HI THANKS THE AUDITOR FOR
03:58:31.897 --> 03:58:33.332
COMPLETING DAUGHTER THAT WE
03:58:33.399 --> 03:58:34.800
REQUESTED --
03:58:34.867 --> 03:58:37.870
AND LOOK FORWARD TO THE FOLLOW
03:58:37.936 --> 03:58:40.105
UP ON THE AUDIT RECOMMENDATIONS
03:58:40.172 --> 03:58:41.907
WE WANT THEM ALL IMPLEMENTED.
03:58:41.974 --> 03:58:44.076
AS QUICKLY AS POSSIBLE I THINK
03:58:44.143 --> 03:58:47.846
THE THE TROUBLE SOME --
03:58:47.913 --> 03:58:50.249
ISSUE FOR ME IS MAINLY A HIRING
03:58:50.315 --> 03:58:51.583
THE STAFF.
03:58:51.650 --> 03:58:54.820
GETTING THE STAFF TO STATE.
03:58:54.887 --> 03:58:58.724
AND RETAIN A GOOD QUALITY TEAM.
03:58:58.791 --> 03:59:02.361
OF I I KNOW THIS THIS COULD BE A
03:59:02.428 --> 03:59:04.897
VERY ATTRACTIVE JOB. FOR A LOT
03:59:04.963 --> 03:59:07.199
OF PEOPLE THAT DESIRE. TO DO A
03:59:07.266 --> 03:59:09.802
SIGNATURE JOB AND THEY'RE COOL
03:59:09.868 --> 03:59:12.004
YOUR FOR AS A PROJECT MANAGER SO
03:59:12.071 --> 03:59:12.771
I THINK.
03:59:12.838 --> 03:59:13.806
I THINK THIS --
03:59:13.872 --> 03:59:15.841
COULD BE AN EXCITING JOB WE WE
03:59:15.908 --> 03:59:17.876
WANT TO MAKE SURE OUR OUR TOP
03:59:17.943 --> 03:59:19.044
LEVEL --
03:59:19.111 --> 03:59:20.646
PEOPLE ARE PAID OUT QUICKLY SO
03:59:20.713 --> 03:59:21.447
THAT.
03:59:21.513 --> 03:59:24.249
WE CAN RECRUIT AND NOT.
03:59:24.316 --> 03:59:25.751
HAVE --
03:59:25.818 --> 03:59:27.953
RETENTION PROBLEMS IN --
03:59:28.020 --> 03:59:29.354
HIGH SPEED RAIL AUTHORITY.
03:59:29.421 --> 03:59:30.355
WE WANT A TEAM THAT STICKS
03:59:30.422 --> 03:59:31.623
TOGETHER AND COMPLETES THE
03:59:31.690 --> 03:59:34.927
PROJECT ON TIME AND ON BUDGET --
03:59:34.993 --> 03:59:37.096
AND ANYTHING WE KNEW TO REMOVE
03:59:37.162 --> 03:59:39.465
IMPEDIMENTS TO THEIR ON TIME AND
03:59:39.531 --> 03:59:41.700
ON BUDGET ON ON ON TIME AND ON
03:59:41.767 --> 03:59:42.434
BUDGET --
03:59:42.501 --> 03:59:45.304
GOAL SHOULD BE TAKEN --
03:59:45.370 --> 03:59:47.139
AND RECOMMENDED BY THE HIGH
03:59:47.206 --> 03:59:49.308
SPEED RAIL FOR INCLUDING AS MR
03:59:49.374 --> 03:59:51.110
FRAZIER SAYS LEGISLATION THAT WE
03:59:51.176 --> 03:59:51.710
WOULD.
03:59:51.777 --> 03:59:52.878
REVEAL IN OUR RESPECTIVE
03:59:52.945 --> 03:59:55.280
COMMITTEES I ALSO THINK --
03:59:55.347 --> 03:59:56.515
INCREASED OVERSIGHT WOULD BE IS
03:59:56.582 --> 03:59:58.984
ESSENTIAL --
03:59:59.051 --> 04:00:00.219
WE WILL WORK --
04:00:00.285 --> 04:00:01.887
TOGETHER --
04:00:01.954 --> 04:00:05.157
WITH -- AND
04:00:05.224 --> 04:00:06.492
TO ENSURE THAT WE HAVE INCREASED
04:00:06.558 --> 04:00:07.726
OVERSIGHT.
04:00:07.793 --> 04:00:10.229
AND SEE THAT --
04:00:10.295 --> 04:00:12.431
THIS PROJECT IS COMPLETED ON
04:00:12.498 --> 04:00:13.799
TIME AND ON BUDGET.
04:00:13.866 --> 04:00:14.833
WE MUST --
04:00:14.900 --> 04:00:16.368
WE MUST LOOK AT CREATIVE WAYS OF
04:00:16.435 --> 04:00:18.871
FINANCING AND I THINK THAT THAT
04:00:18.937 --> 04:00:21.740
WAS AN AREA OF OF THE AUDIT THAT
04:00:21.807 --> 04:00:22.574
COULD HAVE BEEN EXPLORED MORE
04:00:22.641 --> 04:00:23.442
FULLY.
04:00:23.509 --> 04:00:24.476
AND NO -- WE
04:00:24.543 --> 04:00:27.012
WE WILL HAVE TO LOOK AT
04:00:27.079 --> 04:00:29.882
INCREASING OUR OUR LOOK AT HOW
04:00:29.948 --> 04:00:31.650
WE FINANCE AND COMPLETE THIS
04:00:31.717 --> 04:00:32.885
PROJECT.
04:00:32.951 --> 04:00:34.520
AS I SAID EARLIER I THINK THE
04:00:34.586 --> 04:00:37.222
NASH AT THE NATIONAL LEVEL --
04:00:37.289 --> 04:00:38.624
CALIFORNIA IS KIND OF GOING
04:00:38.690 --> 04:00:40.626
AHEAD AND TAKEN THE CAKE AND THE
04:00:40.692 --> 04:00:42.828
LEAD -- IN
04:00:42.895 --> 04:00:45.330
FINANCING INFRASTRUCTURE.
04:00:45.397 --> 04:00:48.934
AND WE NEED A NATIONAL LEADERS
04:00:49.001 --> 04:00:50.536
PAY THEIR FAIR SHARE.
04:00:50.602 --> 04:00:52.704
AND NOT CONTRIBUTE TO
04:00:52.771 --> 04:00:54.173
INFRASTRUCTURE IN UNITED STATES.
04:00:54.239 --> 04:00:56.508
THEY HAVEN'T DONE SO FAR BUT WE
04:00:56.575 --> 04:00:58.043
WE URGE CONGRESS AND THE
04:00:58.110 --> 04:00:59.578
PRESIDENT --
04:00:59.645 --> 04:01:03.182
TO COME TOGETHER ON A A QUALITY --
04:01:03.248 --> 04:01:05.117
BIPARTISAN INFRASTRUCTURE PLAN
04:01:05.184 --> 04:01:06.752
SIMILAR TO WHAT'S BEEN DONE IN
04:01:06.819 --> 04:01:07.986
THE PAST --
04:01:08.053 --> 04:01:09.555
MANY YEARS AGO THEY USED TO BE
04:01:09.621 --> 04:01:10.989
ABLE TO GET TOGETHER ON A
04:01:11.056 --> 04:01:12.424
BIPARTISAN BASIS.
04:01:12.491 --> 04:01:13.559
IT WOULD --
04:01:13.625 --> 04:01:15.394
IT WOULD BE A GOOD BIPARTISAN
04:01:15.460 --> 04:01:17.763
MOVE ON TO BUY BEHALF OF THE
04:01:17.830 --> 04:01:19.331
CITIZENS OF CALIFORNIA IN THE
04:01:19.398 --> 04:01:22.534
UNITED STATES TO HAVE A A
04:01:22.601 --> 04:01:25.003
NATIONAL INFRASTRUCTURE PROGRAM.
04:01:25.070 --> 04:01:26.572
INCLUDING --
04:01:26.638 --> 04:01:30.108
RAIL TRANSIT ALL THE NEEDS IN
04:01:30.175 --> 04:01:31.310
INFRASTRUCTURE HOUSING AND I
04:01:31.376 --> 04:01:34.813
THINK TO BE DONE SO --
04:01:34.880 --> 04:01:37.049
TO THANK YOU FOR YOUR PATIENCE
04:01:37.115 --> 04:01:39.284
AND HARD WORK.
04:01:39.351 --> 04:01:42.054
ON ON CAN A MEMBER OF THE
04:01:42.120 --> 04:01:44.089
COMMITTEE I APPRECIATE --
04:01:44.156 --> 04:01:45.591
YOUR SUPPORT FOR THIS AUDIT
04:01:45.657 --> 04:01:48.694
THANK YOU.
04:01:48.760 --> 04:01:49.962
THANK YOU VERY MUCH AND ALASKA --
04:01:50.028 --> 04:01:50.929
LIKE I'D JUST LIKE TO THINK
04:01:50.996 --> 04:01:52.564
ABOUT CHAIRMAN OF OF THE
04:01:52.631 --> 04:01:53.932
COMMITTEES OF TRANSPORTATION IN
04:01:53.999 --> 04:01:56.068
BOTH HOUSES --
04:01:56.134 --> 04:02:00.072
MISS FRAZIER AND SOME REBEL.
04:02:00.138 --> 04:02:00.639
THANK YOU SAID AT THE STATE
04:02:00.706 --> 04:02:01.940
AUDITOR -- I
04:02:02.007 --> 04:02:03.108
THINK THIS.
04:02:03.175 --> 04:02:05.711
AUDIT IS GOING TO BE --
04:02:05.777 --> 04:02:06.979
A BENCHMARK THAT THE THIS
04:02:07.045 --> 04:02:08.213
LEGISLATURE IS GOING TO BE
04:02:08.280 --> 04:02:10.616
REFERRING --
04:02:10.682 --> 04:02:11.183
TO FOR FOR YEARS TO COME IN
04:02:11.250 --> 04:02:13.819
TERMS OF WHERE WE ARE AT THIS
04:02:13.886 --> 04:02:17.856
POINT AND WHERE WE NEED TO BE
04:02:17.923 --> 04:02:19.358
ESPECIALLY AS WE APPROACH SOME
04:02:19.424 --> 04:02:21.093
OF THOSE IMPORTANT.
04:02:21.159 --> 04:02:22.761
TO DEADLINES THAT TO WERE
04:02:22.828 --> 04:02:23.862
IDENTIFIED IN THE IN THE AUDIT
04:02:23.929 --> 04:02:25.330
REPORT --
04:02:25.397 --> 04:02:28.400
LOOK FORWARD.
04:02:28.467 --> 04:02:30.569
TO A STRONGER --
04:02:30.636 --> 04:02:31.637
YOU KNOW --
04:02:31.703 --> 04:02:33.205
COMMITMENT --
04:02:33.272 --> 04:02:34.706
TO INCREASED OVERSIGHT ACTIVITY
04:02:34.773 --> 04:02:36.341
NOT ONLY THAT'S REQUIRED THROUGH
04:02:36.408 --> 04:02:37.776
THE FOLLOW UPS THROUGH FOR FROM
04:02:37.843 --> 04:02:39.745
THE THE STATE AUDITOR AND AND
04:02:39.811 --> 04:02:42.514
THE HIGH SPEED RAIL AUTHORITY --
04:02:42.581 --> 04:02:45.183
BUT ALSO FROM THE QUARTERLY
04:02:45.250 --> 04:02:47.452
RECOMMENDED A TO THE LEGISLATURE
04:02:47.519 --> 04:02:51.423
AND OF COURSE THE CONTINUE
04:02:51.490 --> 04:02:53.358
LEADERSHIP FROM BOTH --
04:02:53.425 --> 04:02:55.460
CHAIRMAN OF THE TRANSPORTATION
04:02:55.527 --> 04:02:57.863
COMMITTEES OF BOTH HOUSES.
04:02:57.930 --> 04:03:00.632
I FOR ONE I BELIEVE THAT --
04:03:00.699 --> 04:03:01.934
THE HIGH SPEED RAIL AUTHORITY IS
04:03:02.000 --> 04:03:05.070
GOT A LOT OF WORK TO DO. TO
04:03:05.137 --> 04:03:06.638
REGAIN THE TRUST AND CONFIDENCE
04:03:06.705 --> 04:03:07.439
OF CALIFORNIANS AND THEIR
04:03:07.506 --> 04:03:08.740
ABILITY TO TO EXECUTE THIS
04:03:08.807 --> 04:03:10.342
PROJECT.
04:03:10.409 --> 04:03:12.411
HI BUT I WOULD LIKE TO SEE.
04:03:12.477 --> 04:03:15.881
YOU KNOW A A COMMITMENT AND OF
04:03:15.948 --> 04:03:18.650
AND OF REDOUBLED FOCUS ON THIS
04:03:18.717 --> 04:03:20.953
VALLEY TO VALLEY PROJECT AND
04:03:21.019 --> 04:03:22.921
THAT THIS COMPONENT. TO GET THAT
04:03:22.988 --> 04:03:24.656
DONE TO DEMONSTRATE TO
04:03:24.723 --> 04:03:28.327
CALIFORNIANS THAT WE CAN --
04:03:28.393 --> 04:03:30.696
YOU KNOW GET SOMETHING OUT OF
04:03:30.762 --> 04:03:31.663
THE BILLIONS OF DOLLARS THAT
04:03:31.730 --> 04:03:32.698
RIGHT BEEN INVESTED IN THIS
04:03:32.764 --> 04:03:35.434
PROJECT.
04:03:35.500 --> 04:03:39.771
AND TO SEE WERE AT AFTER THAT --
04:03:39.838 --> 04:03:40.105
SO WITH THAT.
04:03:40.172 --> 04:03:42.507
I SEEING NO --
04:03:42.574 --> 04:03:43.875
FOR THE COMMENTS --
04:03:43.942 --> 04:03:45.844
THIS LIKE THE LA INSURANCE
04:03:45.911 --> 04:04:02.027
MEETING