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

Veterans' Home of California—Yountville (8960)

The Department of Veterans Affairs operates the Veterans' Home of California in Yountville. The Yountville facility provides five levels of care, ranging from residential to acute health care. The budget includes requests totaling $5.5 million from the General Fund for capital improvements at existing state institutions. This represents a decrease of $4.5 million from the current year. The estimated future cost to complete these projects is $1.3 million.

The budget includes the following proposals:

• $3.7 million for two previously funded projects to renovate existing facilities.
• $198,000 to renovate an existing water tank and install 4,500 feet of water line.
• $1.5 million for minor capital outlay projects (costs of less than $400,000 per project).

Insufficient Justification of Cost

We recommend the Legislature delete $198,000 for preliminary plans and working drawings to renovate an existing water storage tank and install a new water line because the department has not justified the cost of the project. (Delete Item 8960-301-0001 [3]).

The budget includes a request for $198,000 for preliminary plans and working drawings to renovate an existing water storage tank and install 4,500 feet of 12 inch water line at the Yountville home. The estimated future cost for the project is estimated to be $1.3 million for construction.

We have several concerns with this project:

• The request is based on an estimate prepared three years ago and has not been updated since that time. The only information available for the future construction cost is a single lump-sum cost item.
• The department reports that the project will address water quality issues, as well as Americans with Disabilities Act (ADA) compliance. (The request includes $1,500 for plan checking to ensure ADA compliance.) However, it is not clear how installation of a water line will address handicap accessibility issues at the home.
• The total project cost of $1.5 million includes $391,000 for project administration. The administrative cost includes items such as: $15,000 for an environmental impact report (EIR), although it is not clear why an EIR is necessary; $34,000 (more than $4,000 a month) for travel expenses during the eight month construction period; and more than $110,000 for the Department of General Services (DGS) to manage the project and administer the construction contracts. No information is available explaining why state administrative costs would be so high for a relatively simple project for which neither design nor construction will be complex. As such, the DGS should be able to develop a more detailed estimate prior to requesting funds, and design and administration of the project should be significantly less than 35 percent of the construction cost.

A revised submittal with these adjustments may warrant legislative consideration. The project as submitted, however, is not justified and we recommend the Legislature delete the $198,000 requested under Item
8960-301-0001 (3).

No Information on Status of Veteran's Home Cemetery Renovation

We recommend the department report to the Legislature prior to budget hearings regarding of the status of the Yountville cemetery renovation project and the comprehensive plan for improving the cemetery.

The department requested funding last year to modernize and upgrade the existing veterans memorial cemetery at the Yountville home. The Legislature appropriated $62,000 in the 2000-01 Budget Act to prepare preliminary plans to renovate the cemetery. Improvements were to include construction of a visitor's kiosk and restrooms, straightening of headstones, installation of an irrigation system, and road repairs. The Legislature expressed concern over the condition of the cemetery and adopted supplemental report language directing the department to provide the Legislature a comprehensive plan to provide a first-class memorial cemetery for veterans. The plan is to be submitted at the time additional project funding is requested.

Status of Cemetery Project and Comprehensive Plan. Preliminary plans for the project were scheduled to be complete by December 2000. However, no information is available regarding the status of the project or work accomplished to date. In addition, the department has not provided any information on the comprehensive plan. Therefore, we recommend the department report to the Legislature prior to budget hearings on the status of the project and the comprehensive plan.