Supervisors press DPH and partners to ‘unstick’ decades‑old plan for SFGH childcare center after arbitration win

San Francisco — A long‑promised childcare center for staff at Zuckerberg San Francisco General Hospital remains stalled, city department officials told the Board of Supervisors’ Government Audit and Oversight Committee on Tuesday, citing seismic and structural issues, design and play‑area constraints, and an $8.5 million shortfall against earlier estimates.

Supervisor Myrna Melgar convened the hearing to press the Department of Public Health and partner agencies for a concrete timeline after SEIU Local 1021 and hospital employees won a 2019 arbitration award requiring the city to provide an on‑campus or nearby childcare facility.

DPH associate administrator Terry Saltz and hospital COO Andrea Turner described progress: a 50% schematic design for the CHN building (20th & Fifth), completion of an operator selection process and a structural assessment that revealed unanticipated issues in a parking bay portion of the building. Saltz said the 2019 per‑square‑foot estimate of roughly $850 would translate to a $5.1 million project in 2019 dollars; an updated 50% schematic now yields a $13.6 million cost estimate, and a demolish‑and‑rebuild option would likely approach $19.9 million.

Saltz laid out several alternatives specified by the arbitration award, analyzing each for code, licensing, ground‑floor access (required for infant care), natural light, drop‑off space and seismic safety: the CHN location remains the primary site but has new structural hurdles; other award‑listed sites (corporate yard, Building 30, Lot B, Building 9, Building 30 second floor) each present operational or compliance problems. DPH reported approximately $2.5 million in allocated capital funding in hand and a potential $1.5 million contribution from the Low Income Investment Fund, but stressed the need to confirm sources and fill a remaining funding gap.

Union and long‑time hospital staff speakers described multi‑decade efforts to secure on‑site childcare. Ed Kinchley of SEIU recounted a contractual promise dating to the 1990s, the subsequent grievance, and the arbitrator’s timetable that required an earlier opening that was not met; SEIU leaders said off‑campus leases they have visited are not acceptable to many staff because of commute and shift‑scheduling burdens.

Supervisors pressed DPH on who is driving development decisions, the completeness of site feasibility work and whether the city was appropriately matching financing to project development. Planning, DPW, Rec & Park and the Office of Early Care and Education were cited as active partners. Supervisors asked DPH to return with clearer funding breakdowns, updated structural results, and a city‑level oversight or project‑management approach to “unstick” the project. The committee continued the hearing to the call of the chair for follow‑up reporting.

Key numbers and facts from the hearing: the arbitration award (03/06/2019) required an on‑campus or nearby childcare center; the CHN 50% schematic estimate is $13.6 million (including a $3 million allowance for unknowns) versus a prior $5.1 million estimate; demolish‑and‑rebuild conceptual estimate is $19.9 million; DPH reports an initial capital allocation of about $2.5 million in hand and a potential $1.5 million from the Low Income Investment Fund; the operator (C5) is onboard; structural assessment results are pending in final written form.

Why it matters: The center is a contractual city obligation to hospital employees and has implications for staff retention and equity for frontline healthcare workers; supervisors signaled that delivery delays and ambiguous development ownership across city departments must be addressed.

What’s next: DPH will continue collaboration with partners, review structural reports, determine the CHN site’s feasibility, pursue alternative funding sources and report back to the committee; the hearing was continued to the call of the chair for tracking and accountability.