The Citizens General Obligation Bond Oversight Committee on Dec. 8 received an annual update on the 2016 Public Health & Safety (PHS) general obligation bond, including a construction delay at Zuckerberg San Francisco General (ZSFG) Building 5.

Joe Chin of Public Works told the committee the bond program was originally authorized at $350,000,000 and now shows a revised total of $364,000,000 after about $14,000,000 in bond interest earnings were appropriated. "This bond program was approved for a total bond authorization amount of $350,000,000," Chin said, and he provided line‑item allocations for the six program components.

Chin said three of the six components have been completed and moved into closeout, but ZSFG Building 5 remains the program’s most active component. He told the committee crews damaged multiple existing post‑tension tendons while installing ceiling anchors and that Public Works "have submitted the repair procedure to HCAF for approval". The office said the contractor is responsible for repair costs and related delays, and staff have notified the contractor that the city intends to assess liquidated damages for the contract‑caused delay.

On budget status, Chin reported the ZSFG component budget at $218,000,000, with combined expenditures and encumbrances of approximately $211,600,000 and a remaining balance near $3,200,000. Program‑level figures showed roughly $8,500,000 remaining across the PHS portfolio (about 2% of the revised $364,000,000 budget). Chin also said Public Works completed an arbitrage payment of $1,400,000, leaving approximately $1,420,000 in reserves to allocate to projects.

Chin described the technical difficulty of working in Building 5 — an occupied, older hospital facility with existing post‑tension tendons that require protection during demolition and construction. He said the repair approval process with state reviewers (discussed in the meeting as HCAI, the Department of Health Care Access and Information) is underway and that the tendon repairs will delay the project’s completion "until early 2026." Chin added that several Building 5 subprojects (the clean lab, rehab phase, public health lab, IT infrastructure, psychiatric emergency services and family health center phases) are at differing stages of completion and transition to operations.

Committee members pressed staff on what is included in the "project controls" line item and why Building 5’s project‑control costs are relatively large. Chin explained that project controls captures non‑construction costs — designers, consultants, OSHPD inspectors, environmental oversight and construction management — and that Building 5’s condition and occupancy drive higher oversight and contingencies.

The committee did not take formal new action on the PHS program at the meeting. Public Works said staff are working to wrap up the majority of active construction by 2026 and to begin financial closeout for the bond program next year.