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Budget subcommittee advances bond sales and several project amendments, including Laguna Honda and SF General financing
Summary
The subcommittee cleared multiple routine budget items to the full Board: a correction to a Department of Public Health supplemental appropriation; an amendment to the Laguna Honda Hospital design agreement; and authorizations and appropriations for general obligation bond issuances to fund San Francisco General Hospital seismic work and PUC seismic and cistern projects.
The Budget & Finance Subcommittee voted to forward to the full Board a set of budget and financing items including a corrective ordinance for the Department of Public Health, a modification to the Laguna Honda Hospital master architect contract, and two bond authorizations.
Item 1 (correction to supplemental appropriation): The clerk read an ordinance correcting source delineation on Supplemental Ordinance No. 77-12 to recognize $31,477,332 in state revenue losses and to appropriate $67,629,934 in combined funding sources for additional Department of Public Health expenditures; Kate Howard, the mayor's budget director, said the change fixes an error in source attribution but does not alter the total appropriation. Public comment supported the correction.
Item 2 (Laguna Honda Hospital): The committee considered a resolution authorizing a design-agreement amendment for the Laguna Honda Hospital replacement program. DPW project manager John Thomas described needed design and oversight work tied to repairs of Wing H and extended construction duration. Budget oversight staff recommended a narrowly tailored amendment that reflected a previously approved modification; the department concurred.
Items 3 & 4 (San Francisco General Hospital bonds): Office of Public Finance Director Nadia Sisay presented a request to authorize the sale of up to $265.185 million in General Obligation bonds (Series 2012D) and to appropriate the proceeds for seismic rebuilding of the San Francisco General Hospital and Trauma Center. Sisay described assumed terms and conservative interest-rate caps; budget staff estimated total debt service over 20 years and calculated an annual tax impact example for a $500,000 assessed-value residence. Project managers from DPH reported construction progress and an operational target in 2015.
Items 5 & 6 (PUC seismic repairs and auxiliary water supply): The subcommittee also advanced PUC-authorized GO bond issuance and appropriations to fund seismic and emergency-response improvements. SFPUC CFO Todd Rechtrom detailed approximately $38 million in project funding sought for planning, design and construction (including tanks, pump stations and up to 16 new cisterns); the PUC and fire department described strategy and prioritization for cistern siting and a 2013-2014 construction window for the first group. The budget analyst recommended approval of the legislation and flagged estimated debt-service impacts.
The committee moved these items forward with recommendation, generally without objection. Each ordinance and resolution will appear on the Board of Supervisors agenda for final action.
