December 16, 2004
ROMNEY SEEKS TO JUMPSTART BIG DIG COST RECOVERY
Files legislation to create independent cost recovery process
Governor Mitt Romney today filed legislation, modeled on the recommendations of U.S. Transportation Inspector General Kenneth Mead, creating an independent five-member team to lead the cost recovery efforts at the Central Artery/Tunnel project.
“The establishment of this commission would constitute a critical step in minimizing the state’s exposure,” said Romney. “It will also begin the process of restoring the trust of the citizens of Massachusetts, our federal government partners and the nation’s taxpayers.”
In addition, Romney directed Transportation Secretary Dan Grabauskas to require that the Turnpike Authority certify that remaining state and federal dollars going to the project will not be used to repair leaks in the tunnel so that efforts will focus on recovery of costs from responsible parties.
Grabauskas will also insist that the Turnpike Authority not reduce contract retainages so that money will be held back in anticipation of disputes.
Romney’s proposal creates a cost recovery panel comprised of two gubernatorial appointees as well as the Attorney General, the Auditor and the Comptroller or their designees. The members, who will serve three-year terms without compensation, will have broad investigative powers, including the authority to subpoena, obtain all relevant documents and grant immunity to witnesses.
According to the legislation, no member serving on the commission – or his or her immediate family member – can have a direct or indirect financial interest in the project. By June 30, 2005, the commission will file a report with the Governor and the Legislature to update them on their efforts. It will also be empowered to employ legal counsel, licensed engineers and necessary staff to be funded through the Massachusetts Turnpike Authority.
The current cost recovery team is not independent and is run by the Turnpike Authority. To date, that internal team has recovered just $3.5 million on a nearly $15 billion project.
Yesterday, Romney met with Mead as well as U.S. Transportation Secretary Norman Mineta and Federal Highway Administrator Mary Peters to preview the legislation with them.
“I am encouraged by Governor Romney’s proposal,” Inspector General Mead said. “It is quite specific and would create an independent commission to expeditiously determine the parties responsible for these leaks and ensure that they, and not the taxpayers, bear the costs of repairs. It is also important to have a robust and effective cost recovery effort, not just for the leak repairs, but also for other costs involving errors and omissions.”
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