Potrero Interchange Scam Approaches 20 Year Anniversary

2016-08-18b

On November 4, 1996 the City of Beaumont filed a ‘Design Cooperative Agreement with Caltrans for the Potrero Boulevard Interchange.

The nine page Agreement states that the City must use Engineers and Consultants approved by the State and must follow State Law requiring open, honest competitive bids.

Item 15 of the Agreement states: “This Agreement shall terminate upon completion and acceptance of this construction contract for PROJECT or on November 29, 2000, whichever is earlier in time.

On January 27, 2012, the Department of Transportation approved a Construction Cooperative Agreement with the City of Beaumont to construct Phase 1 of Potrero Blvd.

‘Phase 1’ is construction of the overpass. ‘Phase 2’ would be construction of the on and off ramps.

Estimated completion date for Phase 1 is December 31, 2016.

The Responsibilities of the City include:

9. “CITY is SPONSOR for 100% of PROJECT.”

10. “CALTRANS retains the right to reject noncompliant WORK, protect public safety, preserve property rights, and ensure that all WORK is in the best interest of the SHS. (State Highway System)

12. “CITY is only FUNDING PARTNER for this agreement.”

13. “CALTRANS is the CEQA lead agency for PROJECT.”

14. “CALTRANS is the NEPA lead agency for PROJECT.”

16. “PARTNERS will perform all OBLIGATIONS in accordance with federal and California laws, regulations, and standards; FHWA STANDARDS; and CALTRANS STANDARDS.”

21. “if WORK is done under contract (not completed by a PARTNER’s own employees) and is governed by the California Labor Code’s definition of “public works” (Section 11720(a)(a), that PARTNER will conform to sections 1720-1815 of the California Labor Code and all applicable regulations and coverage determinations issued by the Director of Industrial Relations.”

34. “Upon OBLIGATION COMPLETION, ownership or title to all materials and equipment constructed or installed for the operation and/or maintenance of the SHS within SHS right of way as part of WORK become the property of CALTRANS.”

37. “PARTNERS will maintain, and will ensure that any party hired by PARTNERS t participant in OBLIGATIONS will maintain a financial management system that conforms to Generally Accepted Accounting Principles (GAAP), and that can properly accumulate and segregate incurred PROJECT costs, and provide billing and payment support.”

38. “PARTNERS will comply with the appropriate federal cost principals and administrative requirements outlined in the Applicable Cost Principles and Administrative Requirements table below.”

39. “PARTNERS will ensure that any party hired to participant in OBLIGATIONS will comply with the appropriate federal cost principals and administrative requirements outlined in the Application Cost Principals and Administrative Requirements table below.”

40. “PARTNERS will maintain and make available to each other all OBLIGATIONS-related documents, including financial data, during the term of this agreement.”

42. “PARTNERS have the right to audit each other in accordance with generally accepted governmental auditing standards.

CALTRANS, the state auditor, FHWA, and CITY will have access to all OBLIGATIONS-related records of each PARTNER, and any party hired by a PARTNER to participate in OBLIGATIONS, for audit, examination, excerpt, or transcription.”

43. “PARTNERS will undergo an annual audit in accordance with the Single Audit Act of OMB Circular A-133.” http://www.blm.gov/or/procurement/files/single-audit-basics.pdf

53. “CITY will advertise, open bids, award, approve, and administer the construction contract in accordance with the California Public Contract Code and California Labor Code.”

“CITY will not advertise the construction contract until CALTRANS completes or accept the final plans, specifications, and estimate package; CALTRANS approves the Right of Way Certification; and SPONSOR verified full funding of CONSTRUCTION SUPPORT AND CONSTRUCTION CAPITAL.”

75. “CALTRANS will administer all federal subvention funds indemnified on the FUNDING SUMMARY.”