DPH updates commissioners on 2016 bond projects; supply‑chain and bid pressures create budget uncertainty

DPH and Public Works staff gave the Health Commission a quarterly update on projects funded by the 2016 public health and safety bond, reporting progress on community clinics and Building 5 while flagging material cost increases, bid inflation and schedule risk.

Mark Primo and program managers said Maxine Hall Community Health Center reached substantial completion and is operational, while Castro Mission and Southeast health centers are about 75 percent complete. At Building 5, the rehabilitation department relocation achieved substantial completion in November 2021, enabling downstream projects such as the public health laboratory to proceed. The UCSF research and academic building was reported at roughly 60 percent completion.

Program staff cautioned commissioners that global supply‑chain disruption, higher materials and bid prices, and COVID‑era labor impacts are increasing project costs. Public Works described steps being taken to reduce risk, including removing contract allowances that drive bid uncertainty, increasing early exploratory demolition to surface hidden conditions, soliciting a wider subcontractor pool and using a construction manager/general contractor delivery method for complex in‑building work. The team is working with the project foundation to identify potential gap funding and is tracking two projects through OSHPD/OSHA plan review.

Commissioner questions focused on schedule risk, funding gaps and the need to report back on financial implications. Program staff said they have identified about $23 million in available funds and are pursuing other sources, but acknowledged they do not yet know whether current appropriations will cover all projects. The Commission asked for continued, frequent updates on budget status and project sequencing.