Senator Mark DeSaulnier’s latest effort to improve the management and delivery of California’s transportation projects cleared the Senate Transportation and Housing Committee with bipartisan, unanimous support.
The following is from the Office of Senator Mark DeSaulnier:
SB 969 expands the Public Works Project Peer Review Act of 2013 to require administering agencies of transportation megaprojects to improve project oversight by establishing both a peer review group and a comprehensive risk management plan.
“The Senate Transportation and Housing Committee’s investigation into the Bay Bridge project allowed us to hear from international experts on how we can improve the delivery of megaprojects, and this bill begins to implement their recommendations,” Senator DeSaulnier (D-Concord) said. “The construction of the Bay Bridge has illustrated the need to establish comprehensive risk management plans at the beginning of megaprojects. The taxpayers deserve to know the financial risks of projects, and agencies owe it to the public to provide a transparent look into how they plan to mitigate and control for potential risk.”
In 2013 the Legislature passed and the governor signed, SB 425 (DeSaulnier), the Public Works Project Peer Review Act, which enacted a framework for legitimizing the use of peer review on public works projects by requiring a transparent process for selecting peer review group members and requiring a charter describing the group’s members, objectives, and aims. SB 969 requires an administering agency to establish a peer review group to review the planning, engineering, financing, and other plans of a transportation megaproject. SB 969 defines a transportation megaproject as one with total estimated costs exceeding one billion dollars.
SB 969 also requires an administering agency to manage the risks associated with a transportation megaproject by doing the following:
- Establishing a comprehensive risk management plan with a process to identify and quantify risks to the project, track responses, and control risks throughout the life of the project.
- Qualifying risks in financial terms.
- Developing documents to track identified risks and related mitigation steps.
- Regularly updating cost estimates, reassessing its reserves for potential claims and unknown risks, and reporting risks and integrating updated estimates for costs and contingency reserves.
Website of Senator Mark DeSaulnier: http://sd07.senate.ca.gov/