REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 24, 2026
FROM
NOEL CASTILLO, Director, Department of Public Works - Transportation
SUBJECT
Title
Amendment to Advance Expenditure Agreement with the San Bernardino County Transportation Authority for the Needles Highway Segment 1C Pavement and Drainage Improvement Project in the Needles Area
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Advance Expenditure Agreement No. 22-85 with the San Bernardino County Transportation Authority for the Needles Highway Segment 1C Project in the Needles area, to adjust the Measure I 2010-2040 Colorado River Subarea Major Local Highway Program funding allocation to include the construction phase, and replace the attachments for the Description of Project and Milestones and Summary of Estimated Costs with updated Attachments A.1 and B.1, respectively, with no change to agreement’s term of March 3, 2022 through receipt of final reimbursement or total funding allocation of $900,000.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The pavement and drainage improvement project on Needles Highway Segment 1C, from David Drive north to 0.1 Mile north of Not’cho Road (Project), in the Needles area, is initially funded by Gas Tax revenues and will be reimbursed by the San Bernardino County Transportation Authority (SBCTA) Measure I 2010-2040 Colorado River Subarea Major Local Highway Program (MLHP) funds. SBCTA allocates $900,000 for the Project Approval and Environmental Document (PA/ED), Plans, Specifications and Estimate (PS&E), and Construction phases of the Project, as specified on Exhibit B.1 of Amendment No. 1. Sufficient revenue and appropriation are included in the Department of Public Works (Department) 2025-2026 Road Operation’s budget and will be included in future budgets as necessary.
BACKGROUND INFORMATION
Amendment No. 1 to the Advance Expenditure Agreement No. 22-85 (Agreement) Advance with SBCTA will adjust the SBCTA MLHP funds of $900,000, initially allocated to the Project’s PA/ED and PS&E phases. These two phases are complete with an unspent balance of approximately $500,000. The County requested to utilize the unspent funds for the construction phase of the Project. The Project is in the construction phase with an anticipated completion in the Summer of 2026.
On February 8, 2022 (Item No. 42), the Board of Supervisors (Board) approved the Agreement with SBCTA authorizing the County to move forward with the Project’s PA/ED and PS&E phases. As sufficient funds are received in the Colorado River Subarea account, Project costs would then be reimbursed with MLHP funds. SBCTA agreed to reimburse the County up to $900,000 for the PA/ED and PS&E phases.
Pursuant to Amendment No. 1, SBCTA agrees to reduce the allocation for the PA/ED and PS&E phases from $900,000 to $400,000 and allocate the remaining $500,000 to the construction phase for a total MLHP allocation of $900,000 for the Project. Additionally, approval of Amendment No. 1 will replace Attachment A with revised Attachment A.1, updating the Project milestones, and replace Attachment B with a revised Attachment B.1, adjusting the Project phases allocation. The Agreement’s term remains unchanged and shall terminate upon final reimbursement from SBCTA. SBCTA approved Amendment No. 1 to the Agreement on March 4, 2026.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on March 12, 2026; and County Finance and Administration (Kathleen Gonzalez, Administrative Analyst, 387-5412) on March 6, 2026.