Committee forwards final $209.96 million in Proposition A bonds for San Francisco General Hospital rebuild

The San Francisco Board of Supervisors Budget and Finance Committee on Nov. 20 recommended that the full Board consider authorizing the sale and appropriation of up to $209,955,000 in general obligation bonds to finance the final phase of the San Francisco General Hospital rebuild.

Anthony Abovana of the Controller’s Office told the committee the resolution and ordinance before members would authorize the sale and issuance of City and County general obligation bonds "in an amount not to exceed $209,955,000" and would appropriate those proceeds for the general hospital project. He said previous bond issuances under Proposition A totaled $677,445,000 of the $887,400,000 authorized and that this sale would be the fourth and final tranche under the measure.

Why it matters: City staff estimated debt service on the bonds at about $18 million per year over 20 years, producing roughly $151 million in interest and about $361 million in combined principal and interest across the life of the bonds. Budget analyst Mr. Rose estimated the average annual additional property tax for a single-family residence assessed at $767,300 (with a $7,000 homeowners’ exemption) would be about $52.61 if the bonds are sold as proposed.

Project status and timeline: Joe Chin of the Department of Public Works said structural work — including mat foundation, base isolation and framing — is complete and the team is working to enclose the building and complete interior systems (mechanical, electrical and plumbing). Chin said staff are targeting substantial completion in May 2015. Terry Salas, program manager for the Department of Public Health’s rebuild, said transition planning is underway and the team is targeting an early-December 2015 move-in, noting the officially published date was Dec. 28, 2015 but the transition team prefers an earlier schedule.

Public comment and oversight: Douglas Yap, a longtime SFGH employee, thanked Supervisor John Avalos for past questioning, asked whether the new facility would include dialysis services and urged a proper audit of San Francisco General Hospital and the Department of Public Health, saying oversight is needed. "Without a proper audit of General Hospital, without a proper audit of the Department of Public Health, there's always going to be instances like the current fiasco at General Hospital," Yap said.

Next steps: The committee moved items 1 and 2 forward with a committee recommendation to the full Board; the items are scheduled to appear on the Nov. 26 Board of Supervisors agenda for consideration.