REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 25, 2025
FROM
DON DAY, Director, Project and Facilities Management Department
SHARON NEVINS, Director, Department of Aging and Adult Services
GEORGINA YOSHIOKA, Director, Department of Behavioral Health
CARRIE HARMON, Director, Community Development and Housing Department
SUBJECT
Title
Amendment to Construction Contract with W.E. O’Neil Construction Co. of California for the Pacific Village Campus Development Project in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 1 to Contract No. 24-1163 with W.E. O’Neil Construction Co. of California, including contract addendum identified as “Exhibit K”, which amends the existing Design-Build Agreement for the design builder for the Pacific Village Campus Development Project in the City of San Bernardino, with no change to the amount of $47,205,837 (Four votes required).
2. Approve the Multiple Obligee Rider, naming HORNE and the California Department of Social Services as additional obligees.
3. Approve Escrow Agreement with W.E. O’Neil Construction Co. of California, allowing for security deposits in lieu of retention for the Pacific Village Campus Project.
(Presenter: Don Day, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
This item will not result in the use of Discretionary General Funding (Net County Cost). The Department of Aging and Adult Services (DAAS) Pacific Village Platinum Campus Project (PC Project) has a total funding $20,491,267. This includes $5,712,372 from the American Rescue Plan Act (ARPA) and $14,778,895 from the Community Care Expansion Grant.
The Department of Behavioral Health (DBH) Pacific Village Substance Use Disorder Program
(SUD Project) has a total funding of $17,731,500. This includes $7,226,356 from ARPA, and the difference of $10,505,144 will be supported by the department.
The Community Development and Housing Department (CDH) Pacific Village Campus Expansion Project (PVE Project) has a total funding to $14,849,667. This includes $3,128,621 from ARPA, $3,408,550 from Homeless Housing Assistance and Prevention (HHAP) Grants Round 4, $4,744,769 from HHAP Grants Round 5, $3,223,773 from the Housing and Homelessness Incentive Program, and $343,954 from the Permanent Local Housing Allocation Program.
The escrow agreement requires the County to deposit progress payment retention funds into an escrow account and the funds have been included in the construction contract price.
BACKGROUND INFORMATION
The County is expanding County-owned property known as the Pacific Village Campus, located at 2626 Pacific Street in the City of San Bernardino, to create a model campus that will offer housing and social services to county residents who are experiencing or are at risk of homelessness. Unlike traditional homeless projects or large-scale congregate shelters, this development will include an array of housing interventions designed to address the root causes of homelessness and provide a viable pathway to independent living and permanent housing.
The County created an interim housing project by purchasing the 6.82-acre Pacific Village Campus site and 20 residential trailers for $3,400,000, utilizing Homekey Round 1 funds. The purchase of the property included six existing permanent buildings, one three-bedroom, two-bathroom home, two apartments, an administration building, a dining hall with a kitchen, former church facilities, and centralized parking. The Pacific Village Phase I project opened in March 2021 and created 28 individual living spaces to house homeless individuals impacted by the COVID-19 pandemic.
The Pacific Village Campus will be part of the approximate $53,000,000 multi-use collective partnership between the departments of DAAS, DBH, and CDH, and third-party management providers to increase access to a safe home environment and resources for overall wellness and self-sufficiency. Each department will use designated funding sources for its respective portions of the campus. The Pacific Village Campus will contain communal areas for persons and pets throughout the grounds such as a laundry facility, sitting areas, shaded spaces, and pet relief areas.
On November 19, 2024 (Item No. 5), the Board approved the State’s funding agreement for DAAS. However, the approval did not provide enough time to negotiate the mandated terms with W.E. O’Neil Construction Co. of California (Contractor) and incorporate them into the draft construction contract before the deadline to obligate the American Rescue Plan Act funds allocated for the grant match.
On December 3, 2024 (Item No. 38) the Board approved contract No. 24-1163 to award a construction contract to the Contractor, in the amount of $47,205,837, for the PC Project, SUD Project, and the PVE Project (Projects).
Amendment No. 1 amends the original construction contract to include required State terms pursuant to the Community Care Expansion - Capital Expansion Program Grant Funding Agreement. The Amendment will also allow the Community Care Expansion - Capital Expansion Program Grant funds to be utilized for the Projects. Amendment No. 1 also includes a construction contract addendum required by the State.
Recommendation No. 2 adds a Multiple Obligee Rider to ensure that the State and its program funding manager are also insured by Contractor.
Recommendation No.3 is required to allow the Contractor the ability to exercise their right pursuant to Public Contract Code section 22300; to utilize an escrow account for funds the County retains from payment requests. State law mandates that public agencies permit this form of payment retentions.
The Projects are consistent with County Administrative Office approved CIP request No. 24-037, 23-069, and 24-154.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniel Pasek, Deputy County Counsel, 387-9000) on February 5, 2025; Aging and Adult Services (Jennifer Pohlman, Special Projects Manager, 891-9045) on February 6,2025; Behavioral Health (Georgina Yoshioka, Director, 252-5142) on February 6, 2025; Community Development and Housing (Carrie Harmon, Director, 382-3983) on February 5, 2025; Risk Management (Gregory Ustaszewski, Staff Analyst II, 386-9008) on February 10, 2025: Purchasing (Leo Gomez, Purchasing Manager, 387-2063) on February 10, 2025; Project and Facilities Management (Rob Gilliam, Chief of Project Management, 387-5000) on February 10, 2025; Finance (Joon Cho, Chief Administrative Analyst, and Yael Verduzco, Principal Administrative Analyst, 387-5285) on February 10, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5426) on February 13, 2025.