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

California Department of Corrections (5240)

The California Department of Corrections (CDC) operates 33 prisons and 38 fire and conservation camps throughout the state. A prison is currently under design which will be built adjacent to the existing North Kern State Prison in Delano, and is scheduled to open in August 2002. The prison system also includes 16 community correctional facilities operated by private firms, cities, or counties under contract with CDC. As of mid-January 2001, the system housed 160,433 inmates with classifications ranging from Level I (low-risk offenders) to Level IV (high-risk offenders).

The budget includes requests totaling $92.7 million from the General Fund for 34 capital projects at existing state institutions (31 major projects and three proposals involving studies and minor capital outlay). The estimated future cost to complete these projects is $83.6 million. The budget includes the following proposals:

• $38.8 million for nine projects to renovate or replace existing infrastructure systems.
• $29.1 million for ten projects to renovate or replace buildings.
• $7.6 million for three projects to construct lethal electrified fences at various institutions.
• $5.8 million for one previously approved project to shift the fund source from lease payment bonds to the General Fund.
• $2.3 million for four projects related to fire/life safety and security issues.
• $1.3 million for planning and studies.
• $7.8 million for minor capital outlay projects (costs of less than $400,000 per project).

Of the projects in the budget, 12 major projects were previously funded for preliminary plans and/or working drawings. The budget includes funds for the working drawings and/or construction phases for these projects. The 19 other major projects are proposed for initial funding. We recommend the Legislature approve $40.2 million for advanced planning, various minor projects, and five major capital outlay projects as budgeted. The following is a discussion of the remaining projects and our recommendation for each.

Projects Recommended for Approval Contingent on Completion of Preliminary Plans

We recommend the Legislature approve $34.6 million of funding requests for working drawings and/or construction of six projects contingent on receipt and review of completed preliminary plans and associated cost estimates consistent with prior Legislative approval.

The Governor's budget includes $34.6 million for working drawings and/or construction of six projects for which the Legislature approved preliminary plans and/or working drawing funds in prior years. The projects and funding requested are detailed in Figure 1. The amounts included in the budget are consistent with the inflation-adjusted future costs associated with the prior appropriations and, pending timely completion of preliminary plans, should proceed. Therefore, we recommend the Legislature approve the requested amounts contingent on receipt and review of completed preliminary plans and associated cost estimates that are consistent with the cost and scope previously approved by the Legislature.

Proposal to Replace Air Conditioning System in New Prison

We recommend the Legislature delete $1.1 million to develop preliminary plans for a new air conditioning system at Chuckawalla Valley State Prison because (1) the existing system adequately maintains the required temperature in the institution, (2) the proposed solution will require more energy to operate, (3) in-kind replacement of the existing units would be less costly, and (4) the department already has funds available for this type of special repair project. (Delete $1.1 million under Item 5240-301-0001 [30].)

The budget includes a request for $1.1 million for preliminary plans to install a new air conditioning system at Chuckawalla Valley State Prison. The prison was opened in 1988 and currently houses 3,600 Level I and Level II inmates. The proposed project will replace the air conditioning system at the institution. The estimated future cost of the project is $22.9 million for working drawings ($1.1 million) and construction ($21.8 million). Chuckawalla is located adjacent to Ironwood State Prison, which opened in 1994, near the town of Blythe on the Arizona border. According to the department, a similar funding request will likely be requested for inclusion in the 2002-03 Governor's Budget to replace the entire air conditioning system at Ironwood.

Existing Air Conditioning System. The existing air conditioning system consists of evaporative cooling units, designed to maintain the department's standard for indoor temperature of 90 degrees in inmate housing units. The department has provided temperature data for outside conditions and inside conditions for three representative housing units. As shown in Figure 2, the outside temperature averaged around 110 degrees during July and August last year. The temperatures inside the prison varied by a maximum of about 5 degrees. Figure 2 shows the maximum temperature conditions for Unit A-2, which averaged around 85 degrees during July and August of last year, and exceeded 90 degrees (by about 2 degrees) during 5 separate days (8 percent of the days for which information is available) for a total time of around 30 hours. According to the institution, this occurred mostly when power conservation measures were in effect. Thus, according to available data, the existing units adequately maintain the temperature inside the housing units within the department's standard.

Energy Demands. The proposed project will install new cooling towers, chilled water distribution systems, and natural gas-fired engines, which will require additional energy resources and will be more costly to operate than the current system. This will result in a significant increase in the use of natural gas and electricity. Given the current natural gas and electrical energy situation in the state, the department needs to reduce rather than increase energy usage.

Replacement of Existing Units. The department also investigated the cost to simply replace the existing units with the same type of unit. (The existing units are approaching the end of their useful life.) The total estimated cost for replacement is $6 million—25 percent of the cost of the budget proposal.

Repair Funding Available. The department annually receives $10 million for special repair projects at the various institutions, which are available specifically for repair and replacement of existing infrastructure and equipment. This funding is provided to the department so that equipment can be replaced on an ongoing priority basis over several years. If replacing the equipment is a priority, the department should proceed using existing funds.

For all these reasons, we recommend the Legislature delete a total of $1.1 million under Item 5240-301-0001 (30).

Increased Construction Costs for Lethal Electrified Fences

We recommend the Legislature delete a total of $275,000 from two projects to construct lethal electric fences at two prisons because the increased costs are unjustified. (Delete $191,000 from Item 5240-301-0001 [16] and $84,000 from Item 5240-301-0001 [27].)

The budget proposes $6.9 million from the General Fund for construction of electric fences at two prisons: the Sierra Conservation Center (SCC) ($3.1 million) and the California Men's Colony (CMC) ($3.8 million). The 2000-01 Budget Act included a total of $387,000 for preliminary plans and working drawings for the two projects. At the time those funds were appropriated, the Legislature recognized inflation-adjusted future costs to construct the two projects of $3 million for the SCC fence and $3.6 million for the CMC fence. The budget requests represent a $275,000 (4 percent) increase in construction cost.

On October 31, 2000, the department notified the Joint Legislative Budget Committee that preliminary plans had been completed for the two projects. In response, the chair of the committee directed the department to proceed with the project at the cost and scope previously approved by the Legislature. The department has not provided any additional information to justify the cost increase. Under these circumstances, we recommend the Legislature deny the cost increase and reduce the two funding amounts requested by a total of $275,000. Finally, the Legislature should recognize annual cost savings resulting from the projects of $725,000 and 14 positions for SCC and $564,000 and 11 positions for CMC. This is because perimeter observation posts for each institution will not need to be staffed when the lethal fences are operational.

Delete Funding for Small Management Yards

We recommend the Legislature delete $750,000 for design and construction of small management yards at two institutions because the Legislature already provided funding to address the institutions' needs. (Delete $750,000 under Item 5240-301-0001 [2].)

The budget includes a request for $750,000 from the General Fund for preliminary plans, working drawings, and construction to build 50 small management yards at two institutions: the California Medical Facility, Vacaville and Mule Creek State Prison, Ione. Small management yards are 10-foot by 15-foot outdoor cells made of chain link fence to provide an outdoor exercise area for one inmate at a time. The department proposes to install these for use with inmates housed in administrative segregation units (ASUs).

Last year, the department requested a total of $6.5 million to construct 430 small management yards at 19 institutions that house Level I through Level IV inmates in ASUs. The Legislature agreed to fund only those yards for Level IV inmates in ASUs. Thus, the 2000-01 Budget Act included a total of $1.4 million to construct 92 yards at six prisons, including Mule Creek and Vacaville. Last September, the department notified the Legislature that the yards at Mule Creek and Vacaville were not a priority and requested a scope change to construct all 92 yards at only four of the approved institutions. After redirecting the funds, the department has now requested additional funds to replace the yards which were originally approved. No information is available indicating why the department's priorities have changed, or why the funds approved last year cannot be used for this project if yards are now needed. Consequently, we recommend the Legislature delete $750,000 under Item 5240-301-0001 (2).

Delete Funding for Various Projects at Institutions Statewide

We recommend the Legislature delete $6 million from the General Fund requested for ten projects at eight institutions because either (1) the project has not been justified, (2) funds are not needed in the budget year, or (3) the Legislature previously denied the project. (Delete $6 million under Items 5240-301-0001 [5], [6], [14], [15], [18], [20], [21], [25], [28], and [34].)

The Governor's budget includes $6 million for various phases of ten projects as shown in Figure 3. Four of the six projects were proposed in the 2000-01 Governor's Budget and the Legislature denied the funding requests. The projects and our concerns with each are discussed below.

California Correctional Institution, Tehachapi—Replace Unit 1 Security Fence. The budget includes $164,000 for preliminary plans and working drawings to replace the perimeter fence surrounding a minimum security housing facility. The estimated future cost for construction is $1.1 million. The existing perimeter fence is ten-feet tall with razor ribbon along sections of the top of the fence. The proposal would install a second 12-foot tall fence with razor ribbon along the top of the fence. The department reports that this will increase perimeter security from a Level I to a Level II. However, the inmates housed at this institution are Level I and only two escapes have occurred over the fence in nearly 22 years. Thus, it is not clear why an additional perimeter fence is necessary. Consequently, we recommend the Legislature delete $164,000 under Item 5240-301-0001 (5).

Deuel Vocational Institution, Tracy—Renovate Y and Z Dorms. The budget includes $3.2 million from the General Fund for working drawings and construction to renovate the Y and Z dorms at Deuel Vocational Institution, located in Tracy. The 2000-01 Budget Act included $153,000 for preliminary plans for the project to address code deficiencies and provide modifications to the existing elevated catwalk. At that time, the plans were scheduled to be completed by April 2001. When this Analysis was prepared, the plans were only 19 percent complete and were not scheduled to be finished until July 2001. The project design is three months behind schedule, and the Legislature has no more information regarding the project cost and scope of work than it had last year. Consequently, we recommend the Legislature delete $3.2 million under Item 5240-301-0001 (6).

R. J. Donovan Correctional Facility, San Diego—Replace Substance Abuse Modulars. The budget includes $290,000 for preliminary plans and working drawings to replace the existing 2,760 square feet (sf) of modular buildings used for drug treatment programs. The proposal would construct a 6,962 sf building with office and program space. The estimated future cost for construction is $2.1 million. The department reports that a larger facility is necessary in order to provide substance abuse programs to an increasing number of drug offenders. However, in March 2000 the voters approved Proposition 36, which will divert specified drug offenders from the prison system to drug treatment programs. This should reduce the need for these programs inside the prisons. Until the department has a better understanding of how Proposition 36 will affect the need for program space inside the prisons, the state should not construct new space for these purposes. In the meantime, the department can continue using the existing modular buildings. Consequently, we recommend the Legislature delete $290,000 under Item 5240-301-0001 (18).

California Institution for Women, Frontera—Security Perimeter. The budget includes $786,000 for preliminary plans and working drawings to construct a lethal electric fence at the California Institution for Women. The estimated future cost to construct the project is $9.4 million. As of December 31, 2000, the prison housed around 1,900 female offenders. The proposal is to install perimeter security consisting of a 13-foot tall electrified fence between two 12-foot chain link fences. The department has provided no information to substantiate the need for this project or this level of perimeter security for a women's prison. Consequently, we recommend the Legislature delete $786,000 under Item 5240-301-0001 (20).

California Rehabilitation Center, Norco—Patton State Hospital Double Perimeter Security Fence. The budget includes a request for $567,000 for working drawings to remove the existing perimeter fence at Patton State Hospital and construct a new double fence with motion detection systems, new sallyports, lighting, and closed-circuit television monitoring equipment. The CDC provides security services for the state hospital, which is operated by the Department of Mental Health. The 1998-99 Budget Act included a total of $773,000 for preliminary plans, which were scheduled to be completed in January 1999. At that time, the project was to result in operational savings of $3.4 million annually. Based on information submitted for the budget, the annual savings of the project has now decreased to around $1.2 million.

According to the Department of General Services, preliminary plans have not begun and will not be complete until January 2002—three years behind schedule. Given the significant project delays and the lack of completed preliminary plans, we recommend the Legislature delete $567,000 under Item 5240-301-0001 (25). A future request may warrant legislative consideration in the 2002-03 budget.

Avenal State Prison, Avenal—Receiving and Release Expansion. The budget includes $100,000 for preliminary plans and working drawings to construct an 1,800 sf receiving and release building to house the institution's inmate reception operations. The estimated future cost for construction is $637,000. The prison, which has a population of nearly 7,000 inmates, first opened in 1987. According to the department, the existing receiving and release area is inefficient for processing inmates who are arriving at and leaving the institution. However, the department has not demonstrated what the problems are with the current layout or why the existing building is inadequate. Finally, the department has provided no information to justify the significant construction cost of $260 per square foot. Consequently, we recommend the Legislature delete $100,000 under Item 5140-301-0001 (28).

Various Institutions—Project Studies. The budget includes a total of $910,000 for four studies related to various infrastructure issues. All four of these project studies were proposed in the budget last year and the Legislature denied funding. Studies of this nature are routinely funded through the department's support budget on a priority basis and additional funds should not be provided under capital outlay. Furthermore, the department received $400,000 last year under Item 5240-301-0001 to undertake project studies and planning and has requested an additional $400,000 in the budget year. These funds could be used for the requested studies if they are a high priority. Finally, the budget includes $2 million in unallocated capital outlay funds, which are specifically available for studies to develop projects which may or may not be submitted for capital outlay funding. Thus, we recommend the Legislature delete a total of $910,000 from the request and Items 5240-301-0001 (14), 5240-301-0001 (15), 5240-301-0001 (21), and 5240-301-0001 (34) because funding is already available for this purpose.

Additional Information Needed

We withhold recommendation on $1.9 million for three projects because additional information is needed.

The Governor's budget includes funding requests for preliminary plans and working drawings for three projects totaling $1.9 million as shown Figure 4. These project requests may warrant Legislative consideration pending receipt of additional information resolving outstanding scope and cost issues. Consequently, we withhold recommendation of $1.9 million pending receipt and review of additional information. These projects and our concerns with each are discussed below.

California Correctional Center, Susanville—Replace Antelope Camp Dorms, Phase I. The budget includes $267,000 for preliminary plans and working drawings to begin replacing the existing dorms at the 108 inmate Antelope Camp at the California Correctional Center in Susanville. The estimated future cost to construct the project is $2.2 million. The department plans to undertake the project in two phases. The first phase includes removal of two existing 18-year old modular dormitories and construction of two new dormitories totaling 6,800 sf. An additional 3,400 sf dormitory would be constructed in the second phase. The department has provided insufficient information regarding the cost of the project, noting only that the cost is based on other dormitory construction. Furthermore, it is not clear if the request will construct more space than it replaces, since the existing dormitory square footage is not identified in the proposal. Finally, in the most recent capital outlay plan submitted by the department, this dormitory replacement was listed as an 11-phase project. It is not clear whether the scope of work has been changed or if there will be future replacement requests. Consequently, we withhold recommendation on $267,000 under Item 5240-302-0001 (4) pending receipt and review of additional information on the project cost and scope of work.

California State Prison, Los Angeles County—Sewage Equalization Basin. The budget includes $226,000 for preliminary plans and working drawings to construct a new wastewater flow equalization basin at the institution. The estimated future cost of construction for the project is $1 million. Wastewater currently generated by the institution is treated by the Los Angeles County Sanitation District (LACSD). The project would allow the institution to divert wastewater flow from the LACSD during peak operating hours through the use of a temporary storage basin. The basin would discharge to LACSD during off-peak operating hours. This would decrease the amount the institution is charged for wastewater treatment.

This institution was occupied in 1993. Thus, it is not clear why in just eight years there is a need to undertake this kind of corrective action. Also, the department has not provided information regarding any water conservation efforts in place which would limit the amount of wastewater generated by the institution. Consequently, we withhold recommendation on $226,000 under Item 5240-301-0001 (29) pending receipt and review of why this relatively new prison needs this improvement and data on the institution's water conservation policy and plan.

California State Prison, Sacramento—Psychiatric Services Unit/Enhanced Outpatient Care, Phase II. The budget includes $1.4 million for preliminary plans and working drawings for renovation and conversion of 52,716 sf of existing institution space for an expanded mental health program at the institution. The scope of work for the project includes 21,120 sf of new office space; 6,636 sf for new mental health crisis beds; 9,216 sf for Psychiatric Services Unit (PSU) programs; 15,744 sf for Enhanced Outpatient Program (EOP) services; 9,620 sf for classrooms; and improvements to the existing PSU housing unit. The estimated future cost of the project is $13.4 million.

The department indicates the project will increase the number of PSU beds available at the institution from 64 to 128 by converting existing cells to house inmates needing these services. The project will also increase the number of EOP beds available at the institution from 96 to 288 by converting existing cells. Finally, the project will construct 12 new mental health crisis beds for the prison. The department has provided insufficient information to demonstrate a need for additional mental health beds, either on a statewide basis or at the institution. For example, the department reports that a total of five inmates currently eligible for PSU services cannot be accommodated within existing resources. This, however, does not explain the proposed doubling of PSU beds. Consequently, we withhold recommendation on $1.4 million under Item 5240-301-0001 (33) pending receipt and review of additional information justifying the request.

Schedule Major Capital Outlay Projects

We recommend the Legislature schedule two individual capital outlay projects included under Item 5240-301-0001 (3) rather than provide a lump-sum appropriation.

The budget proposes $715,000 for preliminary plans and working drawings as a lump-sum appropriation for two major capital outlay projects to install lethal electrified fences at two institutions: Correctional Treatment Center, Soledad ($364,000) and California Institution for Men (East), Chino ($351,000). The estimated future cost to construct these projects is $6.9 million for the Soledad prison and $4.9 million for the Chino prison. Each of these projects is consistent with the policy to install lethal fences at most medium- and maximum-security male prisons. Consequently, we recommend the Legislature approve the requested amounts. The projects, however, are separate major capital outlay projects and should be individually scheduled. Thus, we recommend the Legislature schedule these projects as follows rather than provide a lump-sum appropriation.

• Correctional Treatment Center, Soledad, Electrified Fence, preliminary plans and working drawings—$364,000.
• California Institution for Men (East), Chino, Electrified Fence, preliminary plans and working drawings—$351,000.

Fund Preliminary Plans Only

We recommend the Legislature approve $174,000 (a reduction of $355,000) to fund only preliminary plans for (1) a new mental health services building at San Luis Obispo, and (2) potable water system improvements at Norco because preliminary plans need to be completed in order to validate the cost and scope of work for each project. (Delete $225,000 under Item 4440-301-0001 [17] and $130,000 under Item 5240-301-0001 [24].)

The budget includes two requests totaling $529,000 for preliminary plans and working drawings for (1) a new 9,240 sf mental health service building at the California Men's Colony, in San Luis Obispo ($301,000), and (2) various improvements to the potable water system at the California Rehabilitation Clinic, in Norco ($228,000). The estimated future cost is $2.5 million for the mental health building and $1.8 million for the potable water system project. The projects requested are justified and should be approved. However, preliminary plans for the projects should be completed in order to validate the project costs and scope of work before working drawings are authorized.

The department has requested funding for a number of mental health treatment facilities over the last three years and many of these projects are behind schedule. Based on past experience with construction of these facilities, working drawings will not be needed in the budget year; and the cost, scope of work, and schedule for the project should be refined through completion of preliminary plans before additional funds are authorized. Furthermore, the budget for the mental health project includes an additional 33 percent of the construction cost for project administration (excluding inmate guarding costs), which is significantly higher than for other projects. Consequently, we recommend the Legislature fund a total of $76,000 for preliminary plans only for the mental health project.

In addition, the Norco potable water project will make a number of modifications to the institution's potable water system which need to be more thoroughly defined. Because of the nature of the project and the age of the institution, preliminary plans for the project should be completed to validate the project cost and scope of work before additional funds are authorized. Consequently, after making an adjustment to the amount for administration we recommend the Legislature fund a total of $98,000 for preliminary plans only for the potable water improvement project.

Modify Provisional Language

We recommend the Legislature delete the phrase "upon approval of the Department of Finance" in proposed budget language under Provision 1 because such language has prevented the department from producing adequate project cost and scope information in a timely manner. (Modify Provision 1 of Item 5240-301-0001.)

The Governor's budget includes $400,000 for development of project cost and scope information. Proposed budget bill language specifies that the funds are available "to develop design and cost information for new projects for which funds have not been previously appropriated, but for which . . . funds are expected to be included in the Governor's budget for 2002-03 or 2003-04." The language specifies that the funds are available only upon approval of the Department of Finance (DOF).

These funds are intended to help the department define proposed projects and develop cost estimates early in a fiscal year. That, in turn, gives both the administration and the Legislature better information to evaluate, during the latter part of the fiscal year, capital outlay projects which may be included in future budgets.

For many of the projects included in the department's budget, however, insufficient project scope and cost information is available. A significant factor contributing to the lack of information is that DOF does not approve the use of the development funds until deciding to include the projects in the Governor's budget—that is, almost halfway through the fiscal year. As a result, necessary project information is not available for timely review during the budget process. In order to address this problem, we recommend that the funds be available directly to the department to develop the necessary information on their capital outlay projects. This would allow the department to start work early in the budget year and appropriate scope and cost information would be available in a more timely manner to the administration and the Legislature.

To assure the department receives the funds at the beginning of the budget year, we recommend the Legislature delete the phrase "upon approval of the DOF" under Provision 1 of Item 5240-301-0001.