REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 10, 2024
FROM
DON DAY, Director, Project and Facilities Management Department
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Construction Contract with Healthcare Design & Construction LLC, for the Behavioral Health Adolescent Unit at Arrowhead Regional Medical Center in Colton
End
RECOMMENDATION(S)
Recommendation
1. Approve Addendum No. 1 to the bid documents dated June 12, 2024, which provides answers to contractor questions for the Arrowhead Regional Medical Center Behavioral Health Adolescent Unit Project.
2. Approve Addendum No. 2 to the bid documents dated June 14, 2024, to provide clarification in the non-collusion documents.
3. Award a construction contract to Healthcare Design & Construction LLC, in the amount of $6,758,654, for the Arrowhead Regional Medical Center Behavioral Health Adolescent Unit.
4. Approve a budget decrease of $750,125 to Capital Improvement Program Project No. 22-020 for the remodel of the Arrowhead Regional Medical Center Behavioral Health Adolescent Unit, decreasing the total project budget from $15,750,125 to $15,000,000.
5. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments to the Project and Facilities Management Department 2024-25 budget, as detailed in the Financial Impact section.
6. Authorize the Director of the Project and Facilities Management Department to order any necessary changes or additions in the work being performed under the contract, for a total not to exceed $210,000, pursuant to Public Contract Code Section 20142.
7. Authorize the Director of the Project and Facilities Management Department to accept the work when 100% complete and execute and file the Notice of Completion.
(Presenter: Don Day, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve ARMC County Hospital Operations.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Approval of this item will result in a decrease in the funding for the Arrowhead Regional Medical Center (ARMC) Behavioral Health Adolescent Unit (Project) budget by $750,125. The original Project budget of $15,750,125 will be reduced to $15,000,000. The decrease is due to construction costs being lower than estimated.
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
7700004204 |
40909999 |
Residual Equity Transfer Out |
Increase |
$ 750,125 |
10.10.1207 |
|
7700004204 |
54304030 |
Structures and Improvement to Structures |
Decrease |
$ 750,125 |
10.10.1207 |
|
7701004204 |
40909995 |
Residual Equity Transfers In |
Increase |
$750,125 |
NFRP |
|
7701004204 |
54304030 |
Improvements to Structure |
Increase |
$750,125 |
NFRP |
The revised ARMC Project budget of $15,000,000 is comprised of the following components:
|
Description |
Amount |
|
Project Design |
$ 1,553,289 |
|
Project Management, Inspection, and Testing |
$ 1,645,483 |
|
Furniture, Fixtures, & Equipment |
$ 917,456 |
|
Construction |
$ 6,758,564 |
|
Construction Contingency |
$ 675,856 |
|
Project Contingency |
$ 3,449,352 |
|
Total Project Budget |
$ 15,000,000 |
The revised Project budget of $15,000,000 is funded with ARMC Enterprise Funds. Sufficient appropriation and revenue are included in the 2024-25 Capital Improvement Program (CIP) budget to award this contract.
BACKGROUND INFORMATION
The recommended action will award a construction contract to Healthcare Design & Construction LLC for the ARMC Project located in Colton. The Project involves transforming the current adult mental health facility at ARMC into a new adolescent unit which will provide intensive, short-term, and specialized psychiatric care for teenagers and young adults. Three of the four quadrants in the facility are currently occupied by adults, with the fourth completing construction and pending patient incoming transfers. Patients will be shifted to the newly opened quadrant before construction begins on the adolescent unit quadrant, ensuring no disruption in occupancy or treatment. This will be the first adolescent mental health facility in the County and one of the first in the state.
On April 9, 2024 (Item No. 34), the Board of Supervisors (Board) found the Project to be categorically exempt from further review under Section 15302, Class 2, subsection (c), Replacement or Reconstruction of the California Environmental Quality Act (CEQA) Guidelines (Title 14, California Code of Regulations). No additional CEQA review is required at this time.
This Project is consistent with the County Administrative Office approved CIP Request No. 22-020.
PROCUREMENT
On April 9, 2024 (Item No. 34), the Board authorized the Project and Facilities Management Department (PFMD) to advertise for competitive bids. On April 12, 2024, PFMD advertised for bids in the Daily Press and on the County’s Electronic Procurement Network (ePro). On June 19, 2024, at 10:00 a.m., 20 contractors attended a mandatory job walk. On June 12, 2024, Addendum No. 1 was issued to provide additional instructions and clarification to contractors’ questions in response to their requests for information. On June 14, 2024, Addendum No. 2 was issued to revise the Prime Contractor and Subcontractor Non-collusion Declaration form. On June 20, 2024, the following five bids were received:
|
Name |
Location |
Bid |
|
Healthcare Design & Construction LLC |
Tustin, CA |
$6,758,654 |
|
ProWest Constructors (PCM) |
Wildomar, CA |
$6,895,750 |
|
CDG Builders, Inc. |
Irvine, CA |
$7,753,379 |
|
Brascia Builders Inc. |
Long Beach, |
$7,845,000 |
|
Angeles Contractors, Inc. |
City of Industry, CA |
$8,896,000 |
PFMD recommends the Board award the construction contract to the lowest responsive and responsible bidder, Healthcare Design & Construction LLC.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniel Pasek, Deputy County Counsel, 387-5455) on July 11, 2024; Arrowhead Regional Medical Center (Andrew Goldfrach, Chief Executive Officer, 580-6170) on July 16, 2024; Purchasing (Dylan Newton, Buyer II, 387-2148) on July 19, 2024; Project and Facilities Management (Robert Gilliam, Chief of Project Management, 387-5000) on July 23, 2024; Auditor-Controller/Treasurer/Tax Collector (Mima Ugbo, Auditor-Controller Manager, 382-3035) on August 23, 2024; Finance (Yael Verduzco, Principal Administrative Analyst, 387-5285) on August 23, 2024; and County Finance and Administration (Valerie Clay Deputy Executive Officer, 387-5423) on August 23, 2024.
(NH: 387-5000)