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Commission approves $13.8 million draw from Park Presidio P3 risk reserve after extended delays
Summary
The Transportation Commission approved a $13.8 million allocation from the Park Presidio Parkway P3 project’s risk reserve to cover unexpected site conditions, longer construction duration and extensive plan review costs; commissioners asked staff for a claims tally at the next meeting.
The commission voted to allow Caltrans to access $13.8 million from the Park Presidio Parkway public–private partnership (P3) project risk reserve to cover unforeseen site conditions, additional oversight and repeated plan submittals, Caltrans and district staff said.
Bijan Sartipi, District 4 director for Caltrans, told commissioners that the requested funds fall into two main categories: capital costs tied to changed site conditions and utility relocations, and elevated support costs driven by longer-than-anticipated construction and extensive plan‑review cycles. He said litigation delayed the project schedule by about 12 months and that contractors submitted design documents piecemeal, which increased repeated review cycles from an estimated eight to about 24.
Sartipi said examples of capital impacts included relocation of a 12 kV PG&E line and removal of tiebacks that conflicted with later tunnel work; he also cited archeological finds encountered during excavation. Caltrans attributed roughly $1.8 million to those direct capital changes and cited roughly $8.1 million for additional submittal reviews and related document control workload. The district also requested about $2.5 million to cover staff oversight tied to a construction schedule that extended from a planned 33 months to 39 months.
Commissioner Arp moved to approve the request; Commissioner Tablioni seconded. The motion carried with an 8–1 vote. Several commissioners asked for more transparency on outstanding contractor claims; staff agreed to present an itemized total of notices of potential claims and the project’s remaining risk reserve at the commission’s June meeting.
Commissioners noted that while $13.8 million is a small share of a roughly $1.4 billion project, the large number of plan‑review cycles and the volume of notices of potential claim (staff described them as “well over $100 million” when aggregated as notices) merited closer review and lessons learned for future P3 procurements. One commissioner recused themselves from the vote because of a legal conflict noted on the record.
