The budget proposes $62.4 million for capital outlay for the California Department of Forestry and Fire Protection (CDFFP). This amount includes $58.2 million for 49 major and $4.2 million for 11 minor projects (less than $500,000 per project) to be funded from the General Fund. With regard to the major projects, the request includes 34 projects that have previously been funded for preliminary plans and/or working drawings, 12 new projects for which preliminary plans and/or working drawings funds are proposed, 2 proposals to acquire property, and study funds for one project.
We withhold recommendation on the Department of Forestry and Fire Protection's entire capital outlay budget request pending receipt of information that (1) addresses problems in the implementation of the department's capital outlay program and (2) clearly demonstrates what steps will be taken to cure current problems with the capital outlay program. (Withhold recommendation on Item 3540-301-0001.)
Cost Overruns. The CDFFP projects shown in Figure 1 (see next page) are currently estimated by the department to cost more than when these projects were approved by the Legislature in the 1998-99 and 1999-00 Budget Acts. As shown in the figure, these projects in total are over budget by 52 percent and individual projects range from 13 percent to 135 percent over budget. (These figures are not adjusted for the impact of inflation, which ranges from 1.6 percent to 5 percent.)
No information has been provided to explain what occurred that caused the changes and cost increases for the projects in Figure 1. These significant changes raise questions on the scope and estimated construction costs of other projects in CDFFP's program, including those proposed in the Governor's budget.
| Figure 1 | ||||
| Department of Forestry and Fire Protection
Previously Funded Projects With Increased Construction Cost Estimates | ||||
| (Dollars in Thousands) | ||||
| Project | Original Estimatea | Current Estimate | Change | |
| Amount | Percent | |||
| Batterson Forest Fire Station (FFS): relocate facility | $715 | $1,305 | $590 | 83% |
| Weaverville FFS: relocate facility | 1,121 | 2,026 | 905 | 81 |
| Valley Center FFS: relocate facility | 1,015 | 1,451 | 436 | 43 |
| Fort Jones FFS: replace facility | 1,104 | 1,717 | 613 | 56 |
| Sweetwater FFS: relocate facility | 893 | 1,305 | 412 | 46 |
| Elsinore FFS: relocate facility | 909 | 1,525 | 616 | 68 |
| Elk Camp FFS: relocate facility | 652 | 1,534 | 882 | 135 |
| Twain Hart FFS: relocate facility | 1,022 | 1,473 | 451 | 44 |
| Fortuna FFS: relocate facility | 973 | 1,826 | 853 | 88 |
| Springville FFS: relocate facility | 899 | 1,542 | 643 | 72 |
| Raymond FFS: relocate facility | 949 | 1,342 | 393 | 41 |
| Ahwahnee FFS: replace facility | 918 | 1,496 | 578 | 63 |
| Fenner Canyon Conservation Camp (CC): construct vehicle apparatus, replace office | 1,547 | 2,367 | 820 | 53 |
| Ventura Youth CC: construct vehicle apparatus building, shop, and warehouse | 995 | 1,431 | 436 | 44 |
| Baseline CC: remodel facility | 2,981 | 4,124 | 1,143 | 38 |
| Santa Clara Ranger Unit Headquarters (RUH): replace automotive shop | 763 | 1,215 | 452 | 59 |
| San Mateo-Santa Cruz RUH: replace automotive shop | 525 | 923 | 398 | 76 |
| Ukiah FFS: replace facilityb | 1,291 | 1,886 | 595 | 46 |
| Fortuna FFS: relocate facilityb | 973 | 1,826 | 853 | 88 |
| Fort Jones FFS: relocate facilityb | 1,104 | 1,717 | 613 | 56 |
| Weaverville FFS: relocate facilityb | 1,121 | 2,026 | 905 | 81 |
| Usona FFS: replace facilityb | 1,333 | 1,309 | -24 | -2 |
| Bautista Conservation Camp: replace modular buildingsb | 2,469 | 2,787 | 318 | 13 |
| Totals | $26,945 | $40,838 | $13,893 | 52% |
| a Not adjusted for inflation. The first three projects in the figure were funded in 1998-99 and inflation to date has been about 5 percent. The remaining projects were funded in 1999-00 and inflation to date has been about 1.6 percent. | ||||
| b The scopes of these projects have changed since they were approved by the Legislature. | ||||
Report Needed on Status of Projects. In view of the significant cost increases and scope changes discussed above, the CDFFP should report to the Legislature on the status of all projects (including acquisition) funded in the past three years. The report should include the current schedule and cost for each phase of the projects compared to the schedule and cost when the Legislature approved funding for the individual phases. The report also should identify any administrative augmentation to projects.
Recommendation. In view of the scheduling and fiscal problems identified in CDFFP's capital outlay program, we withhold recommendation on the department's capital outlay program totaling $62.4 million until it (1) addresses each of the issues discussed above and (2) can clearly demonstrate what steps will be taken to cure the current problems with the capital outlay program.