The CHSRA has also wasted large sums of money through poor management. Tillier has detailed how the Authority plans to spend billions to outfit Bay Area stations with unnecessary tunnels and viaducts, rather than making elementary improvements to operations. A state audit has shown that the CHSRA knowingly incurred massive additional cost risks by starting construction prematurely; desperate to show progress and to meet a deadline for federal funds, the CHSRA began construction in the Central Valley without buying all the land it needed, or even completing negotiations with the freight railroads whose rights-of-way it planned to use. The state auditor also criticized the CHSRA for hiring expensive consultants, over the objections of its former CEO, to do routine budgeting work.
Some of the worst revelations in the state auditor’s report concern basic failures of contract management. The CHSRA paid contractors without inspecting their work, and contract managers’ review of the quality and cost of finished products was often so shoddy that the auditor could not even conclude whether the CHSRA’s spending was justified. In one especially egregious case, in 2017, the CHSRA hired an external consultant to check the work of Parsons Brinckerhoff (now WSP USA), which had been paid $666 million for engineering consulting. The external consultant found that the CHSRA had not received finished work for 145 of 184 tasks that Parsons Brinckerhoff had called “complete.”
It seems clear that the CHSRA is too incompetent to manage a project of California HSR’s complexity.
Meanwhile, the state’s existing water and road infrastructure is a shambles, and Sacramento still has no plan for dealing with a trillion-dollar underfunded pension crisis.
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