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DPH reports bond spending slow but milestones hit on Zuckerberg Building 5 and UCSF research building procurement
Summary
Officials reported DPH received $272 million from a $350 million June bond sale, overall DPH expenditures around 23%, milestones at Zuckerberg Building 5 including OSHPD certificate for an urgent care clinic and construction starts, and UCSF’s research building procurement proceeding toward design with a Q2 2022 move-in target.
Capital projects staff told the commission they are tracking bond expenditures and project schedules for the DPH share of the 2016 bond. The June bond sale totaled $350 million; the department reported it received $272 million of that allocation and is only tracking the funds that came to DPH. The presentation showed DPH expenditures a little over 23% (up from about 19% in March), with many smaller enabling projects still in design and construction where spending is expected to increase over the next two quarters.
Terry Salts (Zuckerberg Capital Programs) said the urgent care clinic received its OSHPD certificate of occupancy and construction started on surge space project 6H; the rehabilitation department received a notice to proceed and construction is expected to start with a target completion for the surge space toward the end of the year. Joe Chin (Public Works) added that Building 5 accounts for roughly $222 million of the DPH allocation and is about 10.5% expended; several other projects are in design, and the team is sequencing work and abatement to begin construction where appropriate.
On the UCSF Research and Academic Building, Associate Vice Chancellor Michael Baudet said the procurement package for a design–build team has been released to competing contractors, design is expected to begin in the summer, and the project targets a Q2 2022 occupancy. Baudet noted the project includes city-permitted site and road improvements that will be deeded to the city when complete; the building itself will be subject to a ground lease through which UCSF will hold the building during the lease term.
Presenters identified major risks including OSHPD review cycles for hospital projects, city planning historic-determination requirements that added time on some clinics, seismic-code changes raising design thresholds, and competition for large construction crews. The panel said cost and schedule remain under active review and will be reported quarterly.
Ending: The commission asked for clearer baseline visuals and the presenters agreed to add a rebaseline line for awarded contracts going forward and to return with quarterly updates.
