REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 19, 2026
FROM
ROB GILLIAM, Acting Director, Community Development and Housing Department
SUBJECT
Title
Amendment to Agreement with Orangeshow Hospitality, Inc. and Amendment to Disbursement Account Control Agreement for the Pacific Village Project
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 1 to Agreement No. 4400030943 with Orangeshow Hospitality, Inc., to provide interim housing shelter services for the Pacific Village Project participants, increasing the agreement amount by $209,669, from $99,999 to a total agreement amount of $309,668, and with no change to the agreement period, for a total agreement term of January 21, 2026 through January 21, 2027.
2. Approve Amendment No. 3 to Disbursement Account Control Agreement No. 24-123 with Haven View Escrow to remove Quality Management Group, Inc. and add Orangeshow Hospitality, Inc., Gillamber LLC dba Senior Supper Services, and Community Action Partnership of San Bernardino County to the Disbursement Account Control Agreement.
3. Authorize the Chief Executive Officer, Assistant Executive Officer, or Director of the Community Development and Housing Department to make any non-substantive amendments to the agreement with Orangeshow Hospitality, Inc. and sign escrow instructions related to the Disbursement Account, subject to County Counsel review.
4. Direct the Director of the Community Development and Housing Department to transmit any non-substantive amendments to the agreement with Orangeshow Hospitality, Inc. to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Rob Gilliam, Acting Director, 382-3983)
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 Discretionary General Funding (Net County Cost). The San Bernardino County (County) Board of Supervisors (Board) approved the contribution of $1,532,324 in Permanent Local Housing Allocation Program (PLHA) Round 2 funds on February 25, 2025 (Item No. 12), and $1,526,809 in California Emergency Solutions and Housing Program (CESH) funds on April 23, 2024 (Item No. 25), to the disbursement account for the operation of the Pacific Village Project (Project). The cost of the interim housing shelter services will be funded from this disbursement account.
BACKGROUND INFORMATION
In 2020, the County obtained funding through the State of California’s Homekey Program (Homekey), to increase interim housing options for residents experiencing homelessness. Through this funding, the County established the Project at the former Salvation Army site located at 2626 Pacific Street in San Bernardino (Project Site).
The Project’s first phase was completed in February 2021 and provided interim housing for up to 28 individuals or households experiencing, or at-risk of homelessness, and who met the eligibility criteria established by the State under the Homekey Program. Phase I consisted of the temporary installation of 20 travel trailers and eight interim housing units. In addition to housing, participants received case management and a range of supportive services provided by the County’s Department of Aging and Adult Services (DAAS) and Department of Behavioral Health (DBH), tailored to their individual needs. These services included life skills development, behavioral health support, substance use treatment, senior services, healthcare access, and connections to employment and job training opportunities.
On February 9, 2021 (Item No. 33), the Board approved Property Management Agreement No. 21-132 with Quality Management Group (QMG) to provide property management services at the Project. The County terminated Agreement No. 21-132 on March 31, 2026, due to the construction at the Project Site.
On February 6, 2024 (Item No. 17), the Board approved Disbursement Account Control Agreement (DACA) No. 24-123 with Haven View Escrow and QMG to hold $800,000 of PLHA funds in escrow for disbursing operational funds to QMG for the Project.
On April 23, 2024 (Item No. 25), the Board approved Amendment No. 1 to DACA Agreement No. 24-123, authorizing the County to deposit $1,526,809 of CESH funds into the disbursement escrow account with Haven View Escrow as a Capitalized Operating Subsidy Reserve (COSR) for the Project. The COSR supports continuity of property management services during the Phase II buildout. The Board also approved Amendment No. 3 to Property Management Agreement No. 21-132 with QMG, which increased the contract funding amount from $2,400,000 to $3,926,809, and extended the term by one year, from February 9, 2025 to February 9, 2026. This amendment incorporated the CESH funds into the Property Management Agreement to ensure continued funding support for property management operations during the extended project period.
On February 25, 2025 (Item No. 12), the Board approved Amendment No. 2 to the DACA, authorizing the County to deposit $1,532,324 of PLHA funds into the disbursement escrow account as additional COSR funding for the Project.
Building on the success of Phase I, Phase II of the Project is underway to further develop a comprehensive, service-rich continuum of care. Construction began in the fall of 2024 and is anticipated to be completed in the fall of 2026. It was then determined services would need to continue through the completion of Phase II.
The procurement for Orangeshow Hospitality, Inc. was conducted through the County’s informal procurement process in compliance with applicable County requirements, with the selection based on the lowest responsive bidder. On December 11, 2025, outreach was conducted to six local motel providers, resulting in three responses. Purchasing reviewed and approved the approach, confirming it was consistent with County procurement policy.
On January 21, 2026, Purchasing approved Agreement No. 4400030943 between the County and Orangeshow Hospitality, Inc., in the amount of $99,999. Services under the Agreement will continue through January 21, 2027, with all other terms remaining unchanged. Participants will continue to receive supportive services from DAAS and DBH to address their physical health, behavioral health, and housing stability needs.
To ensure participant safety during construction, the Community Development and Housing Department (CDH) transitioned a total of nine participants from the Project Site to the Orange Show Inn in San Bernardino in February 2026. This transition was necessary due to the age and condition of the travel trailers and to protect participants’ health and well-being while Phase II is under construction. The transition allows participants to maintain stable housing and uninterrupted supportive services. CDH is coordinating with DAAS and DBH to ensure continuity of care and facilitate smooth transitions to permanent or supportive housing tailored to the needs of each participant.
Amendment No. 1 to Agreement No. 4400030943 (Amendment) between the County and Orangeshow Hospitality, Inc., will increase the total contract amount by $209,669, to support the continued provision of interim housing for program participants during the construction of Phase II. The Amendment ensures continuity of housing operations and maintains compliance with applicable Homekey funding requirements.
Amendment No. 3 to DACA No. 24-123 will remove QMG from the agreement and establish a CESH Funds Account in the amount of $747,344, a PLHA Funds Account in the amount of $1,532,324, and a Participant Fees Account in the amount of $55,439. The CESH and PLHA Fund Accounts will be restricted accounts used to support anticipated operating costs associated with services while participants are being sheltered at the Orange Show Inn. These costs are estimated to include approximately $309,658 for interim shelter services provided through Orangeshow Hospitality, Inc., $24,990 for a mobile laundry facility operated by the Community Action Partnership of San Bernardino County, and $61,475 for meals provided by Gillamber LLC dba Senior Supper Services. Remaining CESH and PLHA funds following the completion of Phase II will be used to support the operation of the Project. The Participant Fees Account will hold approximately $55,439 in participant-paid fees. These funds are separate from the County budget and will return to participants upon program exit or once permanent housing is secured. Unclaimed participant fees will be held in accordance with the California Unclaimed Property Law (California Code of Civil Procedure section 1500 et seq.).
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on April 16, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on April 30, 2026; and County Finance and Administration (Paul Garcia, Administrative Analyst, 387-4205) on May 8, 2026.