1 00:00:00,000 --> 00:00:05,040 [Music] 2 00:00:17,550 --> 00:00:15,060 I question the original vision because 3 00:00:20,070 --> 00:00:17,560 my first reaction when I heard about the 4 00:00:23,010 --> 00:00:20,080 project is okay a high-speed train from 5 00:00:23,910 --> 00:00:23,020 San Francisco to Los Angeles that's not 6 00:00:26,040 --> 00:00:23,920 my problem 7 00:00:28,260 --> 00:00:26,050 I don't have a problem getting to San 8 00:00:30,270 --> 00:00:28,270 Francisco I get there quite easily and 9 00:00:32,670 --> 00:00:30,280 quite cheaply and quite quickly on 10 00:00:35,880 --> 00:00:32,680 Southwest Airlines my problem is getting 11 00:00:37,530 --> 00:00:35,890 to work so let's kind of start in the 12 00:00:40,430 --> 00:00:37,540 beginning the original vision of this 13 00:00:44,510 --> 00:00:40,440 what problem wasn't really solving uh 14 00:00:48,900 --> 00:00:47,670 Californians who vacation in Europe and 15 00:00:51,210 --> 00:00:48,910 when they're in Europe they take a 16 00:00:54,330 --> 00:00:51,220 bullet train and I think oh this is cool 17 00:00:58,680 --> 00:00:54,340 I would like to have this in California 18 00:01:01,650 --> 00:00:58,690 and really I it sounds amazing but I was 19 00:01:03,740 --> 00:01:01,660 talking with a Democratic Club a couple 20 00:01:06,389 --> 00:01:03,750 years ago and I asked how many people 21 00:01:09,809 --> 00:01:06,399 support how many people have been to 22 00:01:11,639 --> 00:01:09,819 Europe or Japan and ridden you're the 23 00:01:14,010 --> 00:01:11,649 wind of all training and like half the 24 00:01:15,959 --> 00:01:14,020 hands went out I said how many of you 25 00:01:17,969 --> 00:01:15,969 voted for it because you'd like to see 26 00:01:20,809 --> 00:01:17,979 that here and they all went all the 27 00:01:25,379 --> 00:01:20,819 hands went up at the same time so I 28 00:01:27,449 --> 00:01:25,389 think that people who are tourists in 29 00:01:30,300 --> 00:01:27,459 Europe which clearly not the working 30 00:01:32,760 --> 00:01:30,310 class middle class people in California 31 00:01:35,219 --> 00:01:32,770 went there and saw and they they thought 32 00:01:40,499 --> 00:01:35,229 this is something we should have here 33 00:01:43,469 --> 00:01:40,509 and the offer was what we could get 34 00:01:45,949 --> 00:01:43,479 between San Francisco and LA in two 35 00:01:49,980 --> 00:01:45,959 hours and 20 minutes that was the 36 00:01:56,779 --> 00:01:49,990 requirement and the bond Act and I don't 37 00:02:00,690 --> 00:01:56,789 know that anybody really did enough 38 00:02:02,969 --> 00:02:00,700 analysis of over how hard that would be 39 00:02:09,020 --> 00:02:02,979 he could you know financially to achieve 40 00:02:13,290 --> 00:02:09,030 um technically socially politically 41 00:02:15,450 --> 00:02:13,300 legally all those things were became 42 00:02:17,210 --> 00:02:15,460 much more difficult because of that 43 00:02:21,910 --> 00:02:17,220 speed requirement 44 00:02:25,220 --> 00:02:21,920 mm-hmm so the concern over large 45 00:02:26,750 --> 00:02:25,230 governments large government projects 46 00:02:28,670 --> 00:02:26,760 has kind of borne out to be correct 47 00:02:31,930 --> 00:02:28,680 because this project is turned to turned 48 00:02:36,220 --> 00:02:31,940 out to go figuratively off the rails 49 00:02:39,230 --> 00:02:36,230 with the explosion of the cost estimates 50 00:02:41,330 --> 00:02:39,240 and the fact that it doesn't even look 51 00:02:47,150 --> 00:02:41,340 like the high-speed is going to be able 52 00:02:50,090 --> 00:02:47,160 to be achieved it's gone off the rails 53 00:02:53,390 --> 00:02:50,100 because the cost is spiraled off so you 54 00:02:57,830 --> 00:02:53,400 have to ask well has the cost I rolled 55 00:03:00,260 --> 00:02:57,840 up because they underestimated what it 56 00:03:04,010 --> 00:03:00,270 was gonna cost in any case or had they 57 00:03:07,090 --> 00:03:04,020 mismanaged it over the last half dozen 58 00:03:09,850 --> 00:03:07,100 years and I think clearly they 59 00:03:12,770 --> 00:03:09,860 underestimated it at the very outset 60 00:03:15,830 --> 00:03:12,780 just one or two examples if you would 61 00:03:18,710 --> 00:03:15,840 like to know originally they estimated 62 00:03:20,540 --> 00:03:18,720 the land acquisitions in the Central 63 00:03:23,870 --> 00:03:20,550 Valley would cost three hundred thirty 64 00:03:28,160 --> 00:03:23,880 million dollars roughly today it's 65 00:03:31,540 --> 00:03:28,170 budgeted is at 1.5 billion they 66 00:03:34,100 --> 00:03:31,550 originally estimated the environmental 67 00:03:36,920 --> 00:03:34,110 clearances for the entire project from 68 00:03:39,590 --> 00:03:36,930 LA to San Francisco would run a few 69 00:03:42,590 --> 00:03:39,600 hundred million two hundred to three 70 00:03:46,759 --> 00:03:42,600 hundred it's now over a billion so those 71 00:03:49,310 --> 00:03:46,769 are just two good examples of um how 72 00:03:53,180 --> 00:03:49,320 they didn't mismanage anything they just 73 00:03:56,350 --> 00:03:53,190 blew it on estimating what an acre of 74 00:03:59,210 --> 00:03:56,360 the richest farmland the most 75 00:04:02,390 --> 00:03:59,220 technologically advanced farmland in the 76 00:04:05,300 --> 00:04:02,400 world would cost and then the federal 77 00:04:08,240 --> 00:04:05,310 government jumped on board and provided 78 00:04:10,550 --> 00:04:08,250 additional funds how many billion has 79 00:04:14,030 --> 00:04:10,560 the federal government provided the 80 00:04:17,750 --> 00:04:14,040 Obama administration provided two grants 81 00:04:20,300 --> 00:04:17,760 for a total of 3.5 billion and is that 82 00:04:23,510 --> 00:04:20,310 it or is there more coming federally no 83 00:04:24,860 --> 00:04:23,520 that's it so you know that's the other 84 00:04:26,430 --> 00:04:24,870 question is what analysis did the 85 00:04:34,710 --> 00:04:26,440 federal government do 86 00:04:40,470 --> 00:04:34,720 before writing those checks well clearly 87 00:04:43,410 --> 00:04:40,480 not enough the federal government the 88 00:04:45,530 --> 00:04:43,420 Department of Transportation and within 89 00:04:48,960 --> 00:04:45,540 it the Federal Railroad Administration 90 00:04:52,200 --> 00:04:48,970 we're advocating for high-speed rail in 91 00:04:56,550 --> 00:04:52,210 the country and their work programs in 92 00:04:58,890 --> 00:04:56,560 Texas in Florida that receive grants and 93 00:05:02,160 --> 00:04:58,900 and as those two states looked more 94 00:05:03,960 --> 00:05:02,170 closely at the project they backed out 95 00:05:05,580 --> 00:05:03,970 and they gave the money back they said 96 00:05:07,650 --> 00:05:05,590 we don't want it we're not gonna go 97 00:05:10,740 --> 00:05:07,660 forward with it and the Obama 98 00:05:12,840 --> 00:05:10,750 administration redirected some of that 99 00:05:17,640 --> 00:05:12,850 money to California so it got a little 100 00:05:19,560 --> 00:05:17,650 bonus from Texas and Florida yeah these 101 00:05:21,030 --> 00:05:19,570 were the so-called shovel-ready projects 102 00:05:23,070 --> 00:05:21,040 that were gonna help get us out of the 103 00:05:25,620 --> 00:05:23,080 recession correct that's right 104 00:05:28,260 --> 00:05:25,630 yeah and I think the Florida train was 105 00:05:28,770 --> 00:05:28,270 gonna go from Tampa to Orlando that's 106 00:05:31,770 --> 00:05:28,780 right 107 00:05:33,660 --> 00:05:31,780 and Florida analyzed it and said thank 108 00:05:35,790 --> 00:05:33,670 you federal government but we're not 109 00:05:39,560 --> 00:05:35,800 interested in the money interesting only 110 00:05:43,260 --> 00:05:39,570 enough there is a fully privatized 111 00:05:46,170 --> 00:05:43,270 medium speed rail that's being built and 112 00:05:51,360 --> 00:05:46,180 partially operating between Miami and 113 00:05:54,990 --> 00:05:51,370 Orlando and that's being developed with 114 00:05:58,290 --> 00:05:55,000 no state or federal money it's been 115 00:06:02,010 --> 00:05:58,300 operated about 110 miles an hour they 116 00:06:04,380 --> 00:06:02,020 decided that speed was adequate to draw 117 00:06:08,400 --> 00:06:04,390 people off the road if they keep the 118 00:06:10,170 --> 00:06:08,410 fares low if you wanted to get from LA 119 00:06:11,120 --> 00:06:10,180 to San Francisco by train right now can 120 00:06:14,190 --> 00:06:11,130 you do it 121 00:06:17,670 --> 00:06:14,200 yeah with great little difficulty that's 122 00:06:19,650 --> 00:06:17,680 one of the problems I mean clearly we 123 00:06:22,830 --> 00:06:19,660 could have better passenger rail in this 124 00:06:26,850 --> 00:06:22,840 state because people some percentage of 125 00:06:30,659 --> 00:06:26,860 people would rather ride the rails right 126 00:06:34,320 --> 00:06:30,669 now it would take you somewhere north of 127 00:06:36,750 --> 00:06:34,330 8 hours to get from LA to the Bay Area 128 00:06:40,050 --> 00:06:36,760 you'd have to take a bus from Union 129 00:06:42,659 --> 00:06:40,060 Station to Bakersfield over the 130 00:06:46,050 --> 00:06:42,669 Mountains and then you might have to do 131 00:06:48,870 --> 00:06:46,060 another bus link at some point um so 132 00:06:51,990 --> 00:06:48,880 it's uncompetitive nobody wants to spend 133 00:06:53,610 --> 00:06:52,000 eight hours to get to San Francisco so 134 00:06:57,300 --> 00:06:53,620 perhaps one of the most questionable 135 00:07:00,600 --> 00:06:57,310 decisions was to begin work on this 136 00:07:03,120 --> 00:07:00,610 without the whole thing without all the 137 00:07:05,040 --> 00:07:03,130 land being acquired without having the 138 00:07:07,140 --> 00:07:05,050 full plan so exactly how they're gonna 139 00:07:10,250 --> 00:07:07,150 implement the whole thing they began 140 00:07:12,690 --> 00:07:10,260 building what a couple years ago you 141 00:07:14,400 --> 00:07:12,700 know one of the miss management's 142 00:07:18,480 --> 00:07:14,410 remember we talked about things that 143 00:07:20,430 --> 00:07:18,490 they just underestimated at the outset 144 00:07:22,650 --> 00:07:20,440 they didn't have to mismanage anything 145 00:07:25,500 --> 00:07:22,660 but one of the things they did mismanage 146 00:07:28,620 --> 00:07:25,510 was issuing the initial contract for 147 00:07:31,740 --> 00:07:28,630 constructing 29 miles of rail before 148 00:07:34,110 --> 00:07:31,750 they had a single acre a single half 149 00:07:39,390 --> 00:07:34,120 acre or a single foot square foot of 150 00:07:41,640 --> 00:07:39,400 land in hand so that contract was issued 151 00:07:44,300 --> 00:07:41,650 and then the contractor of course began 152 00:07:48,420 --> 00:07:44,310 acquiring heavy-duty equipment and 153 00:07:52,680 --> 00:07:48,430 offices and he just said idle for years 154 00:07:55,140 --> 00:07:52,690 and that became a a very big source of 155 00:07:58,500 --> 00:07:55,150 delay claims for them who is that 156 00:08:01,250 --> 00:07:58,510 contractor that's a team led by Tudor 157 00:08:05,580 --> 00:08:01,260 Perini and where are those guys out of 158 00:08:09,659 --> 00:08:05,590 zomom Sylmar yes so they're in 159 00:08:11,730 --> 00:08:09,669 California yes and this is a company 160 00:08:15,740 --> 00:08:11,740 that's built high speed rail before no 161 00:08:21,150 --> 00:08:15,750 they've built highways structures and 162 00:08:24,240 --> 00:08:21,160 tunnels and public infrastructure you 163 00:08:26,370 --> 00:08:24,250 know what they're building isn't won't 164 00:08:30,110 --> 00:08:26,380 have a rail on it they're building 165 00:08:32,640 --> 00:08:30,120 bridges and viaducts and grade and 166 00:08:35,699 --> 00:08:32,650 trenches which is you know pretty 167 00:08:39,570 --> 00:08:35,709 typical of transportation infrastructure 168 00:08:42,209 --> 00:08:39,580 a later contractor will come in and 169 00:08:44,240 --> 00:08:42,219 install track and signals and 170 00:08:47,280 --> 00:08:44,250 electrification 171 00:08:48,990 --> 00:08:47,290 that's the plan anyways in am i right 172 00:08:51,870 --> 00:08:49,000 that that got approved that initial 173 00:08:54,100 --> 00:08:51,880 twenty seven mile stretch because they 174 00:08:56,290 --> 00:08:54,110 needed to commence construction 175 00:09:01,210 --> 00:08:56,300 by a certain deadline to get the federal 176 00:09:04,060 --> 00:09:01,220 money that's what they said correct they 177 00:09:06,930 --> 00:09:04,070 said we need were pressed to get the 178 00:09:10,600 --> 00:09:06,940 contract issued so that we can meet the 179 00:09:11,950 --> 00:09:10,610 requirements of the grants well but the 180 00:09:14,290 --> 00:09:11,960 grants re are only three and a half 181 00:09:16,480 --> 00:09:14,300 million three and half billion yes and I 182 00:09:18,730 --> 00:09:16,490 say only but it's a lot of money but the 183 00:09:22,030 --> 00:09:18,740 total project cost at this point is 77 184 00:09:24,580 --> 00:09:22,040 billion and there were a number of 185 00:09:27,550 --> 00:09:24,590 senators including Democrats who said in 186 00:09:30,460 --> 00:09:27,560 the long run this three billion will not 187 00:09:33,670 --> 00:09:30,470 be a reason to jump ahead on this 188 00:09:35,380 --> 00:09:33,680 project the way we are let's let's 189 00:09:37,660 --> 00:09:35,390 proceed with the project and the 190 00:09:40,810 --> 00:09:37,670 planning in a rational way and not try 191 00:09:42,640 --> 00:09:40,820 to rush this because we want three 192 00:09:46,480 --> 00:09:42,650 billion in in the long run that won't 193 00:09:47,800 --> 00:09:46,490 matter and that was exactly right and 194 00:09:48,850 --> 00:09:47,810 then I also go back to the federal 195 00:09:50,230 --> 00:09:48,860 government though and you just wonder 196 00:09:51,970 --> 00:09:50,240 what kind of checks the federal 197 00:09:54,190 --> 00:09:51,980 government has why didn't they see right 198 00:09:56,380 --> 00:09:54,200 through this to see wait a minute you 199 00:09:57,550 --> 00:09:56,390 guys aren't ready to begin building this 200 00:10:01,570 --> 00:09:57,560 thing we're not going to give you this 201 00:10:03,100 --> 00:10:01,580 three and a half billion dollars I don't 202 00:10:04,900 --> 00:10:03,110 know who it is in the federal government 203 00:10:08,380 --> 00:10:04,910 that makes that the head of the 204 00:10:11,380 --> 00:10:08,390 department transportation yeah there was 205 00:10:15,340 --> 00:10:11,390 actually a Republican who was a head of 206 00:10:18,010 --> 00:10:15,350 the Department of Transportation he was 207 00:10:21,040 --> 00:10:18,020 formerly a member of Congress them and 208 00:10:25,480 --> 00:10:21,050 he backed it and the Federal Railroad 209 00:10:30,580 --> 00:10:25,490 Administration officials were Democratic 210 00:10:31,840 --> 00:10:30,590 appointees backed it and there was you 211 00:10:34,600 --> 00:10:31,850 can second-guess that and say well 212 00:10:37,180 --> 00:10:34,610 obviously they didn't do the homework to 213 00:10:39,790 --> 00:10:37,190 look and see how ready the state was but 214 00:10:41,800 --> 00:10:39,800 it it is a big state and we do build a 215 00:10:44,140 --> 00:10:41,810 lot of infrastructure here and we have 216 00:10:48,700 --> 00:10:44,150 them successful in them in the distant 217 00:10:50,860 --> 00:10:48,710 past so is it fair to say that 218 00:10:52,990 --> 00:10:50,870 California was embarking on the most 219 00:10:54,370 --> 00:10:53,000 expensive transportation project in the 220 00:10:57,280 --> 00:10:54,380 history of American transportation 221 00:11:00,520 --> 00:10:57,290 projects well if you call it one project 222 00:11:02,740 --> 00:11:00,530 yes it clearly wasn't as expensive as 223 00:11:06,040 --> 00:11:02,750 the interstate freeway system that's 224 00:11:07,269 --> 00:11:06,050 more than one project right certainly 225 00:11:13,569 --> 00:11:07,279 more expensive 226 00:11:15,429 --> 00:11:13,579 than anything I can think of as clearly 227 00:11:17,800 --> 00:11:15,439 the most expensive infrastructure 228 00:11:20,379 --> 00:11:17,810 project of any kind in the state's 229 00:11:24,810 --> 00:11:20,389 history it's far bigger than the state