REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 3, 2026
FROM
MOE YOUSIF, Interim Director, Project and Facilities Management Department
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Change Order to Construction Contract with Angeles Contractor, Inc., for the Arrowhead Regional Medical Center Elevator Modernization Project
End
RECOMMENDATIONS
Recommendation
Approve Change Order No. 2 to Construction Contract No. 24-446 with Angeles Contractor, Inc., for the Arrowhead Regional Medical Center Elevator Modernization Project, to reduce the scope of work, extend the construction completion date from May 20, 2025 to November 3, 2026, and reduce the contract amount by $404,714.09, from $1,786,855.62 to $1,382,141.53 (Four votes required).
(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.
Operate in a Fiscally-Responsible and Business-Like Manner
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The Arrowhead Regional Medical Center (ARMC) Elevator Modernization Project (Project) (WBSE 10.10.1057) budget of $7,952,756 is funded with ARMC Enterprise Funds, as approved by the Board of Supervisors (Board) on June 9, 2026 (Item No. 126).
BACKGROUND INFORMATION
On June 9, 2020 (Item No. 67), the Board approved the Project, in the amount of $4,028,160, to modernize and upgrade the hospital’s patient and staff elevators, referred as elevator one and two, to improve reliability, safety, and operational efficiency. The scope of work includes replacement and upgrades to door components, motors, software, control systems, seismic systems, electrical infrastructure, fire alarm interfaces, communication systems, and elevator flooring.
On May 21, 2024 (Item No. 54), the Board approved Contract No. 24-446 (Contract), with Angeles Contractor, Inc. (ACI) for the ARMC Elevator Modernization Upgrades for Elevators Nos. 1 and 2 Project, with a contract duration of 330 calendar days.
On February 25, 2025 (Item No. 47), the Board approved a mid-year budget adjustment in the amount of $772,142, from $4,028,160 to $4,800,302 to fully fund existing requirements associated with the Project.
On March 11, 2025 (Item No. 31), the Board approved a budget increase, in the amount of $1,227,858, from $4,802,302 to $6,028,160, to include elevators four, five, six, and seven.
On June 9, 2026 (Item No. 59), the Board approved a budget increase, in the amount of $1,924,596, from $6,028,160 to $7,952,756, to include elevators thirteen and fourteen.
On September 18, 2026, pursuant to delegated authority by the Board of Supervisors under (Item No. 54), dated May 21, 2024, the Director of PFMD approved Non-Board Change Order No. 1, increasing the Contract amount by $42,855.62, from $1,744,000 to $1,786,855.62, with no change to the original contract duration of 330 calendar days. Change Order No. 1 incorporated County-directed changes including the substitution of elevator cab wall panels with standard satin finish textured stainless steel wall panels and installation of a new 2-inch data conduit between the elevator penthouse and Intermediate Distribution Frame room, associated pull boxes, firestopping, identification labeling, relocation of an existing electrical receptacle, and a credit for electrical conduit work removed from the original contract scope.
Approval of Change Order No. 2 will remove Elevator Car No. 2 from the scope of work under the Contract. The removal encompasses all work associated with the modernization of Elevator Car No. 2, including but not limited to demolition, electrical power and distribution modifications, elevator system interface work, shaft wall repairs, fire protection and life safety work, lighting and device work, low-voltage systems, temporary conditions, painting, commissioning, warranty, and all associated project management and closeout requirements. Change Order No. 2 also provides a non-compensable time extension of the construction completion date to November 3, 2026, and waives the assessment of liquidated damages. As consideration for the County granting the non-compensable time extension, ACI has voluntarily, knowingly, and after full and fair opportunity to consult with their own legal counsel, agreed that, for a period of five years, neither it, nor its affiliates, successors, or assigns, will submit bids, proposals, statements of qualifications, or otherwise seek to perform work on future construction, maintenance, or improvement projects at ARMC and all ARMC clinic locations.
During performance of the work, the contractor experienced delays in completing the Project and failed to achieve required project milestones. As a result, the County has elected to reduce the scope and reconcile the Contract based on the work satisfactorily completed to date, with all rights and remedies reserved under the Contract documents.
To complete the Elevator Modernization Car No. 2 scope of work, the County will procure the remaining construction services through the Job Order Contracting process.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kaleigh Ragon, Deputy County Counsel, 387-5455) October 22, 2026; Arrowhead Regional Medical Center (Andrew Goldfrach, ARMC Chief Executive Officer, 580-6170) on September 29, 2026; Project and Facilities Management (Jon Aldana, Interim Chief of Project Management, 387-5115) on October 1, 2026; and County Finance and Administration (Yael Verduzco, Principal Administrative Analyst, 387-5285) on October 15, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on October 21, 2026.
(GA: 387-5000)