REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 10, 2026
FROM
MOE YOUSIF, Interim Director, Project and Facilities Management Department
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Budget Adjustment and Construction Contract with Coelho, Inc., for the Arrowhead Regional Medical Center Central Plant Medical Vacuum System Replacement Project
End
RECOMMENDATIONS
Recommendation
1. Approve a budget increase in the amount of $305,937 to Capital Improvement Program Project No. 23-016, increasing the total project budget from $1,876,698 to $2,182,635, for the Arrowhead Regional Medical Center Central Plant Medical Vacuum System Replacement Project in Colton.
2. Authorize the Auditor-Controller/Treasurer/Tax Collector to post necessary budget adjustments to the Capital Improvement Program and Arrowhead Regional Medical Center Central Plant Medical Vacuum System Replacement Project budget, as detailed in the Financial Impact section (Four votes required).
3. Award Construction Contract to Coelho, Inc., in the amount of $1,599,950, with a construction completion date of 270 days from the date of issuance of the Notice to Proceed, for the Arrowhead Regional Medical Center Central Plant Medical Vacuum System Replacement Project in Colton.
4. 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 $92,497.50 pursuant to Public Contract Code Section 20142.
5. 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: Moe Yousif, Interim Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
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 recommended contract award of $1,599,950 will be funded through the Arrowhead Regional Medical Center (ARMC) Central Plant Medical Vacuum System Replacement (Project) (WBSE 10.10.1321), within the total project budget of $2,182,635. The budget increase of $305,937 will be funded by the available unrestricted net position.
Approval of this item will allow the Auditor-Controller/Treasurer/Tax Collector to post the following budget adjustments to the 2025-26 Capital Improvement Program and Arrowhead Regional Medical Center budget:
|
Funds Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
7700004204 |
54304030 |
Structures and Improvements to Structures |
Increase |
$305,937 |
10.10.1321 |
|
7700004204 |
40909975 |
Operating Transfers In |
Increase |
$305,937 |
10.10.1321 |
|
9186104200 |
55305030 |
Operating Transfers Out |
Increase |
$305,937 |
− |
|
9110004200 |
40909995 |
Residual Equity Transfer In |
Increase |
$305,937 |
− |
The revised Project budget of $2,182,635 is comprised of the following components:
|
Description |
Amount |
|
Project Design |
$252,301 |
|
Project Management, Inspection and Testing |
$235,387 |
|
Construction |
$1,599,950 |
|
Construction Contingency |
$79,997 |
|
Project Contingency |
$15,000 |
|
Total Project Budget |
$2,182,635 |
BACKGROUND INFORMATION
The recommended action will award a construction contract to Coelho, Inc. for the Project located in Colton, which will remove and replace the existing central plant medical vacuum system. The new vacuum system will enhance reliability, redundancy and code compliance at the ARMC facility, ensuring uninterrupted clinical operations, improved patient safety and long-term infrastructure resiliency to support current and future healthcare demands.
On November 9, 2025, pursuant to County Policy 11-15, the Assistant Executive Officer (AEO) determined that the Project, involving the replacement and upgrade of the existing central plant medical vacuum system with no expansion of use, is categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301(a) for existing facilities. No further environmental review is required.
This increase of $305,937 is to capture the full costs of the project including bid pricing reflective of prevailing construction costs, material escalation costs, construction contingency and project administration, inspector of record and labor compliance costs.
This project is consistent with the Board of Supervisors approved CIP Project No. 23-016.
PROCUREMENT
On November 9, 2025, the AEO, pursuant to County Policy 11-15, authorized the Project and Facilities Management Department (PFMD) to advertise the project for competitive bids via Request for Proposals (RFP) No. ANE223-ANE2C-6171. PFMD advertised for bids on the County Electronic Procurement Network (ePro) on November 12, 2025. On November 21, 2025, at 8:00 am, contractors attended a mandatory job walk.
On January 6, 2026, the following three bids were received:
|
Name |
Location |
Bid |
|
Coelho, Inc. |
Santee, CA |
$1,599,950 |
|
Healthcare Design and Construction, LLC |
Tustin, CA |
$1,854,105 |
|
HPS Mechanical |
Bakersfield, CA |
$1,902,543 |
PFMD recommends the Board award the construction contract to Coelho, Inc., the lowest responsive and responsible bidder. No protest or appeals were received on behalf of the Project.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniel Pasek, Deputy County Counsel, 387-5455) January 27, 2026; Arrowhead Regional Medical Center (Andrew Goldfrach, ARMC Chief Executive Officer, 580-6170) on January 27, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on January 27, 2026; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on January 30, 2026; Project and Facilities Management (Rob Gilliam, Chief of Project Management, 387-5115) on February 2, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884, and Yael Verduzco, Principal Administrative Analyst, 387-5285) on February 23, 2026.
(GL: 387-5000)