Report 2016-132 Recommendation 2 Responses
Report 2016-132: Department of Water Resources: The Unexpected Complexity of the California WaterFix Project Has Resulted in Significant Cost Increases and Delays (Release Date: October 2017)
Recommendation #2 To: Water Resources, Department of
To better manage large infrastructure projects, DWR should develop and implement a project-reporting policy requiring its management staff to document and justify decisions to proceed with such projects if they are expected to exceed their established budgets by 10 percent or schedules by 12 months. DWR should make these documented decisions and justifications publicly available and submit them to the Resources Agency for review and approval.
6-Month Agency Response
DWR continuously strives to improve its transparency, project management, monitoring, and usable metrics related to large infrastructure projects. To this end, DWR will evaluate its existing policies and procedures related to increases in project cost and delays in project schedules. DWR will then develop or amend policies and procedures if needed to include a mechanism for reporting material cost and time increases to the public. DWR will update its progress on this issue at the next periodic report to the State Auditor.
- Estimated Completion Date: Unknown
- Response Date: April 2018
California State Auditor's Assessment of 6-Month Status: No Action Taken
60-Day Agency Response
This recommendation does not make a distinction between the planning phase of a project and the design and construction phase. DWR believes this is an important distinction, as evidenced in the Report's findings for the planning phase of the WaterFix. The recommendation presupposes that an extension of time during a project planning phase is something that has a negative consequence. This recommendation has limited applicability here, since decisions regarding this project were made in response to stakeholder input and public comments to increase the range and scope to better meet the needs of the state. The planning process for large infrastructure projects is complex and subject to changing requirements and scope from a variety of sources including regulating agencies, project proponents, stakeholders, and the public at large. As seen with WaterFix, this results in increases in scope and schedules that are beyond the control of DWR. Limiting the Department's ability to be responsive to stakeholder input during complex "planning" efforts would be counterproductive.
- Response Date: December 2017
California State Auditor's Assessment of 60-Day Status: Will Not Implement
Our recommendation does not presuppose that time delays have a negative consequence, rather that they should be thoroughly justified and vetted. The recommendation does not limit DWR's ability to be responsive to stakeholder input, but would require DWR to consciously and transparently consider that input before making decisions that affect project cost and schedule, whether during planning or other phases of the project.
Agency responses received are posted verbatim.