CEO Report

Brian P. Kelly, CEOFebruary 29, 2024

RAISE Grant | Program Updates | Relevant Materials


  • In February 2024, the Authority submitted a federal Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant application for $15.88 million. The State of California will provide matching funds from Cap-and-Trade revenue of $3.97 million, for a total cost of $19.85 million.
  • The application is for Final Design and related third-party coordination for the Merced Integrated Multimodal Station Project (Project). A future grant application will request funding for construction.
  • The Project will serve as a “Northern California Gateway” to Sacramento, the Bay Area, other San Joaquin Valley destinations and points south for high-speed intercity passenger rail and coordinated regional rail and transit services.


  • Wong-Harris JV
    • Contract Amendment
    • Justification:
      • The revised Construction Package 1 schedule has required the Wong-Harris contract to be extended to comport with the 2026 project completion date. The approval of this change order increases the budget and extends the contract, which allows for continuity in the critical services provided by WongHarris JV.
    • Scope of Work:
      • No change to scope of work. Increase in budget for extension of contract to September 30, 2025.
    • Cost:
      • $91,871,623
  • PG&E and AT&T Facilities Relocation
    • Change Order:
      • 48.9
    • Justification:
      • The relocation of PG&E and AT&T utilities was excluded from the original scope of work for Construction Package 1. The relocation of these facilities became the responsibility of the contractor after the original bid because the volume of relocations was more than the utilities could execute alone. The approval of this change order allows the Authority to compensate TPZP for work associated with the relocation of PG&E and AT&AT facilities. Without the approval, the advancement of the project would be significantly delayed.
    • Scope of Work:
      • Change in scope of work and increase in budget.
    • Cost:
      • $62,500,000
  • Hernandez, Kroone & Associates Dispute Brought Up In Public Comment 
    • This issue referenced earlier is an invoice dispute / back and forth between the Authority and HKA over two contracts.
    • The highest level of management has been assigned to work on this dispute – including:
      • Chief Operating Officer, and
      • Director of Real Property
    • Once the Authority received requested documentation from HKA, we expedited review and paid (August through December)
      • $676K out of $750K in invoices
      • 90 percent paid
      • With 10 percent remaining
        • We still need HKA to resubmit invoices on the remaining disputed billing – we are meeting weekly to finalize this effort. Our next meeting with the company is next week.
    • The payments were overnighted and HKA has confirmed receipt.
    • It’s in the taxpayer’s best interest that the Authority continues to carefully review and analyze all invoices prior to payment.


Board of directors

Board Resolutions

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Board of Directors Secretary
(916) 324-1541

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