Pete Wilson On How California Dealt With Past Disasters

From a lengthy editorial in last week's Wall Street Journal.

First, I quickly exercised the extraordinary emergency powers conferred upon the governor of California by the state Government Code. I suspended the operation of statutes and regulations that would have required the protracted public hearings called for before environmental impact reports could be filed and acted upon, and I suspended other normally demanded procedural hurdles. The elimination of these legal requirements drastically reduced purposeless delays that would have impeded recovery and compounded the injury inflicted by the quake.

Second, we took a page from the book of private-sector incentives for accelerating performance. We told contractors bidding to repair the bridges that they must submit bids that specified not only the cost but the date of completion, and that they must agree to an added condition: For every day they were late, they would incur a penalty of $200,000; and for every day they were early, they would be rewarded with a bonus of $200,000. The winning bidder, C.C. Myers Inc., put on three shifts that worked 24/7. In order to prevent any delay in the work, they hired a locomotive and crew to haul to Los Angeles steel sitting on a siding in Texas. Myers made more on the bonus than they did on the bid.
Incentives work. The reward to the contractor in this instance was well worth the reward to the public in achieving restoration of critical infrastructure two years early.

Read the whole article here.