2016 Public Health & Safety Bond shows $85 million funding gap; projects face bidding and schedule pressure

DPH and Public Works officials updated the Health Commission on March 7 about the 2016 Public Health & Safety Bond program, reporting an uncaptured deficit that has been reduced to an estimated $85 million after applying supplemental funding sources.

Terry Saltz of Zuckerberg Capital Planning and program leads described a constrained bidding environment: contractors and skilled trades shifted away from medical projects during the pandemic, material costs and lead times remain elevated, and interest rates are higher. Saltz said project managers are pursuing value engineering, rescoping, early demolition and broader packaging of bids to attract more bidders and control costs.

For example, presenters said the PES early demolition is about 93% complete with the main PES construction awaiting permits; anticipated completion for the main PES project was discussed as late 2025 with occupancy in early 2026. Building 5 and other projects may be delayed or rescoped if bids exceed available funds. The presenters said they are updating the master schedule monthly to reflect scope changes and funding realities.

Officials also highlighted opportunities for additional funding: a recently awarded state grant of approximately $33.7 million focused on behavioral health and youth psychiatric services and tracking of climate‑related grant programs tied to extreme heat and cooling needs. They said those dollars might be studied to determine if infrastructure elements (IT, plumbing, electrical) could be applied to bond projects.

Commissioners probed staffing, the master schedule and contingency planning. Presenters said there are active efforts to identify supplemental funds and to rescope projects if bids come in too high; some projects will wait for funding before starting construction to avoid contract risks.