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Board approves $537.3M CP 2-3 change order to resolve disputes; several members abstain or recuse
Summary
After closed-session discussion, the board authorized execution of change order 4927 (agreement 13-51) with Dragados Flatiron JV for $537,299,086 to resolve pending arbitration and claims related to Construction Packages 2 and 3; the roll call recorded multiple abstentions and one recusal.
The California High-Speed Rail Authority on April 29 authorized a settlement and change order with the Dragados Flatiron joint venture (CP 2‑3) totaling $537,299,086 after a closed-session review of pending arbitration, claims and schedule impacts.
Chief Counsel Christine Ciccotti summarized the closed session and the board then voted to authorize the CEO or his designee to execute agreement number 13‑51, change order 4927, in the amount presented to the board in closed session. A board member moved and Vice Chair Nancy Miller seconded. The secretary's roll call recorded the following named positions: Director Ernest Camacho (abstain), Vice Chair Nancy Miller (yes), Director Henry Perea (yes), Director Martha Escutia (abstain), Director Williams (aye), Director Jeffrey Worthe (yes). Director Emily Cohen had recused herself from closed-session matters earlier in the meeting due to a perceived conflict of interest, and the meeting record notes her recusal.
The board reported the closed session produced no other reportable action prior to Ciccotti's public summary. The motion carried and the Authority will proceed with executing the change order as authorized.
Why it matters: The change order resolves a set of disputed claims and adopts a new schedule for CP 2‑3, moving a significant settlement to finalize outstanding contractor disputes; the dollar value is material to the program and will affect contractor relations and project cash flows.
Next steps: The CEO or designee is authorized to execute the settlement agreement; staff did not provide additional implementation details in the public session beyond the authorization and the recorded votes.
