REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 18, 2026
FROM
TRACY REECE, Chief Probation Officer
SUBJECT
Title
Amendment to Contract with VARP, Inc. for Adult Offender Housing Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Contract No. 22-433 with VARP, Inc. to provide housing services to adult offenders, increasing the daily cost per person housed from $55 to $80, with no changes to the total aggregate amount of $16,000,000 or the term of July 1, 2022 through June 30, 2027.
(Presenter: Tracy Reece, Chief Probation Officer, 387-5692)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
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 additional Discretionary General Funding (Net County Cost). Costs for the provision of housing services to adult offenders over the five-year period will be fully funded by State Realignment funding received under Assembly Bill (AB) 109. Adequate appropriation and revenue have been included in the Probation Department’s (Department) 2026-27 recommended budget.
BACKGROUND INFORMATION
On April 4, 2011, the Governor of California signed AB 109, the Public Safety Realignment Act (Realignment). The bill created a provision for the adjudication of parole violations at the local level, rather than returning these offenders to the state prison system. Essentially, Realignment moved responsibility for supervision of these offenders from the state to the local level.
Parolees are titled Post Release Community Supervision (PRCS) offenders after their current offense is determined to be non-serious, non-violent, and non-sex related. Realignment dictates that these individuals be released for supervision to the local county where they were originally sentenced. The legislation also requires that best practices be utilized for treatment and rehabilitation. Since 2013, the County has been contracting with vendors to provide housing services to adult PRCS offenders under Department supervision.
On June 14, 2022 (Item No. 44), the Board of Supervisors (Board) approved contracts with 17 agencies for adult PRCS housing services, for a total aggregate amount of $16,000,000, for a five-year period effective July 1, 2022.
On February 28, 2023 (Item No. 37), the Board of Supervisors (Board) approved Amendment No. 1 to Contract No. 22-423 with The Inland Empire Community Outreach Center, one of the 17 contracted agencies, increasing the daily cost per person housed from $40 to $60 to cover cost of living increases, with no change to the total aggregate amount of $16,000,000 for a total of 17 agencies, and no change to the term of July 1, 2022 through June 30, 2027.
On June 22, 2026, VARP, Inc. (VARP) submitted a request to increase the current daily housing rate from $55 to $80 per participant per day to address increased operating costs associated with providing housing and supportive services, including cost of living increases. The requested rate adjustment will enable VARP to continue meeting its contractual obligations and maintain the level of services provided to adult offenders.
The Department evaluated the requested rate increase and determined it to be reasonable and consistent with current market conditions. The proposed daily rate of $80 per participant remains competitive when compared to similar housing contracts, which provide for daily reimbursement rates of up to $100 per participant. Accordingly, the Department recommends approval of the rate adjustment to ensure the continued availability of housing services for adult offenders through the term of June 30, 2027, with no change to the total aggregate amount of $16,000,000 as sufficient budget remains based on current and projected expenditures. The 15 other agencies have not requested an adjustment to their rates.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Maria Insixiengmay, Deputy County Counsel, 387-5455) on July 16, 2026; and County Finance and Administration (Matthew Dalton, Administrative Analyst, 387-5005) on July 29, 2026.