Legislative Analyst's Office Analysis of the 2001-02 Budget Bill

Department of Health Services (4260)

The Department of Health Services (DHS) owns and operates laboratory facilities in Berkeley, Los Angeles, and Fairfield. The budget includes $2.2 million from the General Fund for working drawings of
Phase III of the department's new laboratory facilities in Richmond. The estimated future cost to complete the project is $47.5 million.

Funding Not Needed in Budget Year

We recommend the Legislature delete $2.2 million for working drawings for the Richmond Laboratory Phase III project because preliminary plans have not been completed and the Legislature has no more project information than it had last year. (Delete $2.2 million under Item 4260-301-0001 [1]).

The budget includes $2.2 million for working drawings of the Richmond Laboratory Phase III. The 2000-01 Budget Act included $1.8 million for preliminary plans for the project. This project will construct a 200,000 gross square feet, 4-story office building for 850 staff on 8.5 acres of land, including all utilities and parking for 600 vehicles. This project is part of a multiphase laboratory and office building development for the department.

According to the Department of General Services, preparation of the Environmental Impact Report has not been completed, and preliminary plans for the project are less than 10 percent complete. As a result, the Legislature has no more information now regarding the cost or scope of work for the project than it had last year. Preliminary plans should be completed to validate the project cost and scope before the Legislature authorizes additional funds. Consequently, we recommend the Legislature delete the $2.2 million requested under Item 4260-301-0001 (1).