REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 24, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Revenue Agreement with South Coast Air Quality Management District for Procurement of Mobile Medical Clinics
End
RECOMMENDATION(S)
Recommendation
Approve Revenue Agreement with South Coast Air Quality Management District, including non-standard terms, to accept up to $1,000,000, to assist in the procurement of two zero-emission mobile medical clinics and retire an existing gas-powered mobile medical clinic, effective upon full execution through April 30, 2028.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
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). The recommendation will allow Arrowhead Regional Medical Center (ARMC) to accept up to $1,000,000 from the South Coast Air Quality Management District (SCAQMD) to procure two zero-emission mobile medical clinics.
BACKGROUND INFORMATION
On February 28, 2023 (Item No. 17), the Board of Supervisors (Board) approved Contract No. 23-149 with SCAQMD, including non-standard terms, to accept up to $1,000,000 to assist in the procurement of two zero-emission mobile medical clinics and retire an existing gas-powered mobile medical clinic (Project), effective upon full execution through April 30, 2025. The Board also approved an allocation of $500,000 from the 2022-23 Fifth District’s Board of Supervisors Discretionary Fund - District Specific Priorities Program budget to fully fund the Project.
The two zero-emission mobile medical clinics were procured with the help of Fleet Management and partial payment was allocated towards the specific build requirements. However, delivery of the mobile medical clinics were delayed due to manufacturing supply chain disruptions. As a result, ARMC was unable to obtain the funding under Contract No. 23-149.
A new revenue agreement (Agreement) was granted by SCAQMD and mirrors the previous agreement but with extended timelines in order to fulfill the Project requirements.
Approval of this item will enable ARMC to obtain the necessary funding for the two zero-emission mobile clinics and complete the project. As part of the Agreement, ARMC must allow SCAQMD access to inspect the zero-emission mobile medical clinics, demonstrate their use, retire and dismantle an existing 2006 gas-powered mobile medical clinic, and provide periodic reports to SCAQMD regarding the Project.
The Agreement with SCAQMD contains non-standard terms and lack many of the County standards terms, including the following:
1. Venue is in Los Angeles County.
• The County standard contract requires venue of disputes to be in the San Bernardino County Superior Court, San Bernardino District.
• Potential Impact: Having venue in Los Angeles County rather than in San Bernardino County may result in expenses to the County that may not have been incurred if venue for a dispute is in San Bernardino County.
2. The County is required to indemnify and defend SCAQMD for claims arising out of the acts or omissions of the County or its subcontractors.
• The County standard contract does not require the County to indemnify the other contracting party for any claims.
• Potential Impact: By agreeing to indemnify SCAQMD, the County is contractually obligated to defend SCAQMD and pay any resulting settlement or judgment for claims against SCAQMD that arise out of the conduct of the County or its subcontractors.
3. The County is required to furnish evidence to SCAQMD of the County’s general liability, workers’ compensation, and automobile liability insurance policies (or self-insurance), add SCAQMD as an additional insured on the policies, waive any right of subrogation, and provide SCAQMD 30 days’ notice prior to cancellation of any insurance policy.
• The County standard contract does not impose any insurance requirements on the County.
• Potential Impact: County Risk Management will need to ensure that the County has in place the required insurance policies or program of self-insurance, adds SCAQMD as an additional insured, and provide SCAQMD with 30 days’ notice prior to the cancellation of any applicable insurance policy.
4. The County does not have the option to terminate for convenience.
• The County standard contract gives the County the right to terminate the contract, for any reason, with a 30-day written notice of termination without any obligation other than to pay amounts for services rendered and expenses reasonably incurred prior to the effective date of termination.
• Potential Impact: The County is unable to terminate the Agreement for convenience and may only terminate for a breach by SCAQMD.
5. SCAQMD is not contractually required to indemnify the County.
• The County standard contract requires the other contracting party to defend and indemnify the County for claims caused by anyone.
• Potential Impact: SCAQMD is not required to defend, indemnify, or hold the County harmless from any claims, including indemnification for claims arising from SCAQMD’s negligent or intentional acts. If the County is sued for any claim, including claims that arise out of the acts of SCAQMD, the County may be solely liable for the cost of defense and damages, which could exceed the total Agreement amount.
6. SCAQMD is not required to comply with any of the County’s insurance requirements.
• The County standard contract requires contractors to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department.
• Potential Impact: The Agreement does not include County standard insurance requirements. This means that the County has no assurance that SCAQMD will be financially responsible for claims that may arise from the Agreement.
ARMC recommends approval of the Agreement, including the non-standard terms, to allow the completion of the project and other needed medical services to more county residents and help reduce motor vehicle emissions.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on March 18, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on March 18, 2026; Purchasing (Leo Gomez, Purchasing Manager, 387-2063) on March 18, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on March 18, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on March 18, 2026.