REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 19, 2026
FROM
MOE YOUSIF, Interim Director, Project and Facilities Management Department
SHARON NEVINS, Director, Department of Aging and Adult Services
JOSHUA DUGAS, Acting Director, Department of Behavioral Health
ROB GILLIAM, Interim 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
End
RECOMMENDATIONS
Recommendation
1. Approve Amendment No. 3 to Contract No. 24-1163 with W.E. O’Neil Construction Co. of California, for the Pacific Village Campus Development Project located in the City of San Bernardino, to increase the contract amount by the amount of $927,713, from $47,205,837 to a total of $48,133,550, 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. 1 to Contract No. 24-1163 with W.E. O’Neil Construction Co. of California, for the Pacific Village Campus Development Project located in the city of San Bernardino, in the amount of $63,805, increasing the contract from $48,133,550 to a total of $48,197,355, with no change to the project completion date of 670 calendar days after the Date of Commencement stated in the Notice to Proceed, for the Pacific Village Campus Development Project located in the city of San Bernardino (Four votes required).
3. Approve a budget increase in the amount of $300,000 for the Department of Behavioral Health Pacific Village Substance Use Disorder Capital Improvement Program project No. 23-069, increasing the total project budget from $17,731,500 to $18,031,500.
4. Approve a budget increase in the amount of $900,000 for the Department of Aging and Adult Services Platinum Campus Capital Improvement Program project No. 24-037, increasing the total project budget from $20,491,267 to $21,391,267.
5. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments as detailed in the Financial Impact section (Four votes required).
(Presenter: Moe Yousif, Interim 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). Approval of the budget increases of $300,000 for the Department of Behavioral Health Pacific Village Substance Use Disorder Program (DBH SUD) (WBSE 10.10.1380) and $900,000 for the Department of Aging and Adult Services (DAAS) Pacific Village Platinum Campus Project (DAAS PC) (WBSE 10.10.1533) will be funded by 2011 Realignment and the Pacific Village Reserve, respectively.
The Department requests the Auditor-Controller/Treasurer/Tax Collector to post the following adjustments to the 2025-26 budget:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
1000 |
37008792 |
F/B Assigned - Pacific Village Reserve |
Decrease |
$900,000 |
|
|
1160001000 |
55305030 |
Operating Transfers Out |
Increase |
$900,000 |
|
|
1018961000 |
55305030 |
Operating Transfers Out |
Increase |
$300,000 |
|
|
1018961000 |
40458711 |
Realignment 2011 |
Increase |
$300,000 |
|
|
9200001000 |
40458711 |
Realignment 2011 |
Decrease |
$300,000 |
|
|
9200001000 |
40458700 |
State Realignment Revenue |
Increase |
$300,000 |
|
|
1169001010 |
40458700 |
State Realignment Revenue |
Decrease |
$300,000 |
|
|
1169001010 |
40458702 |
Realignment Reserve (Budget) |
Increase |
$300,000 |
|
|
7700003100 |
54304030 |
Structures & Improvements to Structures |
Increase |
$300,000 |
10.10.1380 |
|
7700003100 |
40909975 |
Operating Transfers In |
Increase |
$300,000 |
10.10.1380 |
|
7700003100 |
54304030 |
Structures & Improvements to Structures |
Increase |
$900,000 |
10.10.1533 |
|
7700003100 |
40909975 |
Operating Transfers In |
Increase |
$900,000 |
10.10.1533 |
The DBH SUD Project will have 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 Project will have 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 Community Development and Housing Department (CDH) Pacific Village Campus Expansion Project (PVE Project) has a total funding of $14,849,667. This includes $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.
The escrow agreement requires the County to deposit progress payment retention funds into an escrow account and the funds have been included in the construction contract price.
BACKGROUND INFORMATION
The County is expanding owned property known as the Pacific Village Campus (Campus), located at 2626 Pacific Street in the City of San Bernardino, to create a model campus that will offer housing and social services to county residents who are homeless or at risk of homelessness. Unlike traditional homeless projects or large-scale congregate shelters, this development will include an array of housing interventions designed to address the root causes of homelessness and provide a viable pathway to independent living and permanent housing.
The County initiated an interim housing project by purchasing the 6.82-acre Campus site for $3,400,000, utilizing Homekey Round 1 funds. The purchase of the property included six existing permanent buildings: one single family home, two apartments, an administration building, a dining hall with a kitchen, and former church facilities, 20 residential trailers, and centralized parking. The Pacific Village Phase I project opened in March 2021 and created 28 individual living spaces to house homeless individuals impacted by the COVID-19 pandemic.
The Campus will be part of the approximately $53,000,000 multi-use collective partnership between DAAS, DBH, and CDH; and third-party management providers to increase 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 persons 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 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 ARPA funds allocated for the grant match.
On December 3, 2024 (Item No. 38), the Board approved contract No. 24-1163 to award a construction contract to the Contractor, in the amount of $47,205,837, for the PC Project, SUD Project, and the PVE Project (Projects). Amendment No. 1 amends 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 Projects.
On February 5, 2025 (Item No. 28), the Board approved Amendment No. 1, which amended the original construction contract to include required State terms pursuant to the CCE program funding agreement.
On April 7, 2026 (Item No. 20), the Board approved Amendment No. 2, changing the name of the CCE grant program administrator from Horne LLP to BDO Government Services, LLC.
The proposed Amendment No. 3 addresses additional work needed to accommodate increases in the scope of work due to unforeseen circumstances discovered during construction of the project and site conditions. The additional work includes fire lane extension, ligature resistant fixtures, civil storm drain revision, manhole revisions, replacement of existing switchgear, and additional access control setups. These scope adjustments were not reasonably identifiable at the time of bid and are necessary to ensure compliance while preserving project schedule and integrity.
Change Order No. 1 addresses additional work requested by DBH. The additional work includes re-design and relocation of dog kennels, due to the drive lane extension conflicting with the dog kennel’s existing location, and design modifications associated with Phase 3 improvements.
Approval of the budget increase for DBH will provide an additional $300,000 to address project cost increases driven by construction phase scope adjustments. These include life safety enhancements such as ligature resistant fixtures and access control systems, along with site utility revisions, stormwater modifications, water system upgrades, fire water infrastructure revisions, and related facility improvements necessary to meet County standards and regulatory requirements identified during plan review and construction. During the review of construction drawings, several site and utility systems were found to be non-compliant with County standards, requiring redesign and additional coordination that was not fully captured in the original project budget.
Approval of the budget increase for DAAS will provide an additional $900,000 to fund construction phase scope adjustments, including civil, structural, and building system modifications. These include upgrades to existing electrical and utility infrastructure, transformer replacement, access control systems, security video surveillance, and improvements required to bring existing facilities into compliance with applicable codes and regulatory requirements.
These additional costs reflect County review comments, unforeseen site conditions, and construction phase investigations needed to address existing conditions uncovered during construction that were not known or fully documented during the original design and procurement phases, resulting in increased construction costs.
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 March 31, 2026; Aging and Adult Services (Sharon Nevins, Director, 891-3917) on April 9, 2026; Behavioral Health (Joshua Dugas, Interim Director, 252-5142) on April 9, 2026; Community Development and Housing (Rob Gilliam, Interim Director, 382-3983) on April 9, 2026; Risk Management (Stephanie Mead, Staff Analyst II, 386-9044) on April 9, 2026; Auditor-Controller/Treasurer/Tax Collector (Mima Ugbo, Deputy Chief Controller, 382-3195) on May 4, 2026; Project and Facilities Management (Sarah Riley, Chief of Project Management, 387-5115) on April 13, 2026; County Finance and Administration (Paul Garcia, 387-4505 and Iliana Rodriguez, Administrative Analyst IIIs, 386-8392, Guy Martinez, 387-5428, John Hallen, 388-0208, and Yael Verduzco, Principal Administrative Analysts, 387-5423) on May 8, 2026.