REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 17, 2026
FROM
RAUL GARCIA, Director, Project and Facilities Management Department
SHARON NEVINS, Director, Department of Aging and Adult Services
JOSHUA DUGAS, Director, Department of Behavioral Health
ROB GILLIAM, Acting Director, Community Development and Housing Department
SUBJECT
Title
Amendment and Change Order to Construction Contract with W.E. O’Neil Construction Co. of California for the Pacific Village Campus Development Project more commonly known as the Highland Creek Housing and Wellness Campus
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 4 to Contract No. 24-1163 with W.E. O’Neil Construction Co. of California, for the Pacific Village Campus Development Project, also commonly known as the Highland Creek Housing and Wellness Campus, located in the City of San Bernardino, to increase the contract amount by the amount of $954,111, from $48,197,355 to $49,151,466, with no change to the project completion date of 670 calendar days after the Date of Commencement stated in the Notice to Proceed (Four votes required).
2. Approve Change Order No. 2 to Contract No. 24-1163 with W.E. O’Neil Construction Co. of California, for the Pacific Village Campus Development Project, also commonly known as the Highland Creek Housing and Wellness Campus, located in the City of San Bernardino, to increase the contract amount by the amount of $1,320,100, increasing the contract from $49,151,466 to a total $50,471,566, with no change to the project completion date of 670 calendar days after the Date of Commencement stated in the Notice to Proceed (Four votes required).
(Presenter: Raul Garcia, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Foster Sustainable Development Through Strategic Partnerships.
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 additional Discretionary General Funding (Net County Cost). The $954,111 increase under Amendment No. 4 and $1,320,100 increase under Change Order No. 2, totaling $2,274,211, will be funded by the Department of Behavioral Health (DBH) Substance Use Disorder Project (WBSE 10.10.1380), Department of Aging and Adult Service (DAAS) Platinum Campus Project (WBSE 10.10.1533), and Community Development and Housing (CDH) Pacific Village Campus Expansion Project (WBSE 10.10.1671), in accordance with the department-approved funding allocation.
Costs directly attributable to a specific department will be funded by that department’s respective project, while shared campus costs will be allocated among the benefiting projects. San Manuel Grant Program-funded costs associated with CDH will be funded through the Pacific Village Campus Expansion Project.
DBH SUD has a total funding of $18,031,500. This includes $7,226,356 from the American Rescue Plan Act (ARPA), $10,505,144 from California Department of Health Care Services’ State Bond Behavioral Health Continuum Infrastructure Program grant funds, and $300,000 from 2011 Realignment.
The DAAS PC has a total funding of $21,391,267. This includes $5,712,372 from ARPA and $14,778,895 from the Community Care Expansion (CCE) - Capital Expansion Program, and $900,000 from the Pacific Village Reserve.
The PVE Project has a total funding of $17,849,667. This includes $3,000,000 from the San Manuel Grant Program funding obtained from the Yuhaaviatam of San Manuel Nation; $3,128,621 from ARPA funds; $3,408,550 from Homeless Housing Assistance and Prevention (HHAP) Program Round 4 funds, $4,744,769 from HHAP Round 5, $3,223,773 from Housing and Homelessness Incentive Program fund, and $343,954 from the Permanent Local Housing Allocation Program funds.
BACKGROUND INFORMATION
San Bernardino County (County) is currently undertaking Phase 2 development of the County-owned property known as the Highland Creek Housing and Wellness Campus, also referred to as the Pacific Village Campus (collectively “Campus”), located at 2626 Pacific Street in the City of San Bernardino, expanding it into a comprehensive model campus that will provide housing and supportive services for county residents who are experiencing or are at risk of homelessness. Unlike traditional homeless assistance projects or large-scale congregate shelters, the Campus will offer a range of housing interventions designed to address the root causes of homelessness and provide a viable pathway to independent living and permanent housing.
The County established the interim housing project by purchasing the 6.82-acre site and 20 residential trailers for $3,400,000, utilizing Homekey Round 1 funds. The property included six existing permanent buildings: one three-bedroom home, two apartments, an administration building, a dining hall with a kitchen, former church facilities, and centralized parking. Phase 1 of the Highland Creek Housing and Wellness Campus project opened in March 2021 and created 28 individual living spaces to house individuals experiencing homelessness, impacted by the COVID-19 pandemic.
The Campus will be part of the approximate $53,000,000 multi-use collective partnership between County departments (DAAS, DBH, and CDH); and third-party management providers. This partnership is designed to expand 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 Campus will contain communal areas for residents 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 of Supervisors (Board) approved the State’s Community Care Expansion (CCE) program 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 Coronavirus Local Fiscal Recovery Fund funding allocated for the grant match.
On December 3, 2024 (Item No. 38), the Board approved Contract No. 24-1163 awarding a construction contract to the Contractor, in the amount of $47,205,837, for the DAAS PC Project, DBH SUD Project, and the PVE Project (collectively Projects).
On February 25, 2025 (Item No. 28), the Board approved Amendment No. 1 to Contract No. 24-1163, amending the original construction contract to include required State terms pursuant to the CCE program funding agreement. The amendment also allowed the CCE - Capital Expansion grant funds to be utilized for the PC Project.
On January 27, 2026 (Item No. 21), the Board accepted the Program Funding Agreement and Amendment to Resolution for the Bond Behavioral Health Continuum Infrastructure Program Round 1 Grant.
On April 7, 2026 (Item No. 20), the Board approved Amendment No. 2 to Contract No. 24-1163, changing the name of the CCE grant program administrator from Horne LLP to BDO Government Services, LLC.
On May 19, 2026 (Item No. 59), the Board approved Amendment No. 3 to Contract No. 24-1163, in the amount of $927,713, and Change Order No. 1, in the amount of $63,805. Amendment No. 3 addressed additional work including fire lane extension, ligature resistant fixtures, civil storm drain revision, manhole revisions, replacement of existing switchgear, and additional access control setups that were not included in the original scope of work and were not reasonably identifiable at the time of contract award but were nonetheless necessary to ensure compliance with applicable laws while preserving project schedule and integrity. Change Order No. 1addressed the re-design and relocation of dog kennels, due to the drive lane extension conflicting with the dog kennel’s existing location. In total, Amendment No. 3 and Change Order No. 1 increased the construction contract by $991,518 from $47,205,837 to $48,197,355.
Amendment No. 4 addresses additional work resulting from stakeholder-directed programming needs, regulatory and plan-check requirements, and unforeseen existing site conditions encountered during construction. The work includes construction and design of a hot box enclosure for the Recuperative Care Center; underground water system revisions required by East Valley Water District plan-check comments and conflicts with existing utilities; investigation, design, coordination, and replacement of cafeteria equipment and utilities; additional civil design and construction for water service to the Recuperative Care Center, cafeteria, duplex, and administration buildings; extension and replacement of the fire alarm system serving the Recuperative Care Center and Community Development and Housing buildings; and work associated with an existing concrete-encased storm drain and concealed grade beams.
Amendment No. 4 also includes credits for unused furniture, fixtures, and equipment allowances and the existing switchgear replacement. The additions and credits result in a net increase of $954,111, increasing the contract amount from $48,197,355 to $49,151,466, with no change to the contract term of 670 calendar days after the Date of Commencement stated in the Notice to Proceed.
Change Order No. 2 addresses additional County and stakeholder-requested work to support campus operations, security, finishes, wellness programming, cultural representation, landscaping, and furnishings. The work includes construction associated with the previously approved Phase 3 dog kennel redesign and relocation; Schlage door hardware for the Substance Use Disorder facility; painting of existing Community Development and Housing and Department of Aging and Adult Services buildings; a site security and time-lapse camera; and a fiber-optic connection between the Substance Use Disorder facility and the Recuperative Care Center; site vehicle gate transmitters; non-skid flooring in the Substance Use Disorder janitor closet;
Change Order No. 2 also includes a storage shed and yoga mats for wellness activities, colored concrete, wayfinding and cultural signage, native landscape design and construction, outdoor amphitheater and gathering-space furnishings, and campus furniture, fixtures, and equipment. Several of these items are funded through the San Manuel Grant Program. Change Order No. 2 increases the contract amount by $1,320,100, from $49,151,466 to $50,471,566, with no change to the contract term.
Together, Amendment No. 4 and Change Order No. 2 will increase Contract No. 24-1163 by $2,274,211, from $48,197,355 to a total revised contract amount of $50,471,566, with no change to the contract term.
The Projects are consistent with County Administrative Office approved CIP request No. 24-037, 23-069, and 24-154.
Public Contract Code section 20136 requires all change orders and amendments to construction contracts to have a four-vote approval by the Board.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniel Pasek, Deputy County Counsel, 387- 9000) on October 29, 2026; Aging and Adult Services (Sharon Nevins, Director, 891-3917) on October 30, 2026; Behavioral Health (Jennifer Alsina, Assistant Director, 388-0808) on October 30, 2026; Community Development and Housing (Rob Gilliam, Acting Director, 382-3983) on October 30, 2026; Risk Management (Arrissia Beaven, Staff Analyst II, 386-9030) on October 30, 2026; Project and Facilities Management (Sarah Riley, Chief of Project Management, 387-5115) on October 30, 2026; County Finance and Administration (Paul Garcia, 388-0218 and Lizveth Varela, 387-4883, Administrative Analyst IIIs, and Guy Martinez, 387-5428, John Hallen, 388-0208, and Yael Verduzco, Principal Administrative Analysts, 387-5485) on November 4, 2026.