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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: William J. Gallardo, Interim City Manager
Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Award an Agreement to Resource Environmental, Inc. to Demolish and Abate the property located at 796 E.
6th Street to prepare the site for construction of the
future Navigation Center for a Total Amount Not to
Exceed $177,200 (Ward 1)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the City Manager or designee to approve the award of an agreement with Resource Environmental, Inc., in the amount of $177,200 for abatement of hazardous materials and demolition of the existing School of Hope buildings; and,
2. Authorize the Director of Finance and Management Services to approve contingencies in the amount of $35,440 for unforeseen conditions that may arise during the abatement or demolition processes, for a total not to exceed budget of $212,640.00; and,
3. Authorize the City Manager or designee to execute all documents with Resource Environmental, Inc.; and,
4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project.
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Executive Summary
The city will be constructing a Homeless Navigation Center, to be located at the former School of Hope site, located at 796 East 6 th Street in San Bernardino. The Homeless Navigation Center is designed to provide emergency shelter and wrap-around services for the City’s unhoused population. The existing complex of buildings and hazardous materials will need to be demolished and removed to prepare the site for the proposed new construction. The City secured proposals from Resource Environmental, Inc., to perform the abatement and demolition. Funds for this work will be available from the existing fund balances within the Public Works Department FY24-25 budget.
Background
The School of Hope site is a formerly active school site that provided a variety of services to special needs students from the mid-1980s until 2022. The property was deemed no longer needed by the School District and was subsequently transferred to the City Municipal Water Department in 2022. The site consists of a u-shaped complex of classrooms and administrative buildings around a central internal courtyard area. Over the last several years, the site has experienced increased vandalism and trespassing, as well as a significant increase of graffiti and illegal dumping. To the west is Palm Field, an active City Park site and to the east is Santa Clause Incorporated, a not-for-profit services agency.
In 2022, the City, through the San Bernardino Municipal Water Department, contracted with L. Y. Environmental, Inc., of Redlands, California to conduct a comprehensive asbestos and lead base paint survey of the existing buildings as a precursor to demolition of the site. Two surveys were completed, and asbestos was identified in various locations within the building. Copies of the two reports are included as Attachment 3.
The City acquired the property from the Water Department in 2023 for use as the Navigation Center site. Scoping and design work commenced in mid-September 2023, resulting in the award of design and fabrication of the modular buildings for the Navigation Center by Mandeville Modular, and general construction management and inspection by CREDE Construction Advisory at the November 20, 2024 Mayor and City Council meeting. The City anticipates the development and release of the actual construction bid documents by June 2025.
Discussion
In order to expedite the site preparation, the City solicited abatement and demolition proposals from Resource Environmental, Inc. on a selected source basis. Resource Environmental previously conducted the demolition of the Carousel Mall, and ancillary buildings for the City, and recently completed the demolition of the former County of San Bernardino Hall of Records building on Third Street. Resource Environmental is knowledgeable regarding the various requirements associated with lead and asbestos (hazardous materials) abatement, as well as the efficient demolition of various structures.
Staff solicited and received two separate proposals for the abatement of the hazardous materials on site in the amount of $94,700 and the physical demolition of the existing 2 5
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buildings down to the foundations in the amount of $82,500. The proposals were originally solicited in November 2024 and were revised for January 13, 2025. Copies of the two proposals dated January 13, 2025, are included as Attachment 2.
Staff requested that the City Attorney review the proposals in order to ensure that they complied with the Homeless Emergency Order allowing the City to expedite the various acquisition of goods and services and determined that the award of this agreement does fall under the Emergency Order as it relates to the need to expedite the provision of homeless services within the City. The City Manager, subsequently, determined that the award of these two proposals to the same company exceeded their purchasing authority and therefore requested that this be presented for award to the Mayor and City Council for their consideration and approval. A Contract for Construction has been determined to be the best agreement; the Contract is included as Attachment 1.
Because of the process of soliciting and awarding this Agreement, the City Attorney has determined that restricted funds (i.e. Federal or State grant funds) may not be used for these activities, therefore available fund balance within the Public Works Department will be used to fund the $212,640.00 proposed. The initial cost for the abatement and demolition provided by Resource Environmental, Inc. is $177,200. Staff is requesting authorization of an additional 20% contingency in the amount of $35,440 to address an undiscovered or unanticipated costs identified during the abatement and demolition process that were not readily identifiable during either the site assessment or job walk. 2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No. 3a: Improved Quality of Life – reduce the burden of the unsheltered through engagement, collaboration, and partnerships with other entities.
Fiscal Impact
Funds in the amount of $212,640 will be allocated from the existing General Fund balance within the Public Works Department for this project. As previously stated, restricted grant funds may not be used for this service, due to the process used for acquiring the services, as determined by the City Attorney.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the City Manager or designee to approve the award of an agreement with Resource Environmental, Inc., in the amount of $177,200 for abatement of hazardous materials and demolition of the existing School of Hope buildings; and,
2. Authorize the Director of Finance and Management Services to approve contingencies in the amount of $35,440 for unforeseen conditions that may arise 2 5
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during the abatement or demolition processes, for a total not to exceed budget of $212,640.00; and,
3. Authorize the City Manager or designee to execute all documents with Resource Environmental, Inc.; and,
4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project.
Attachments
Attachment 1 Contract for Construction with Resource Environmental, Inc.
Attachment 2 Resource Environmental, Inc., Proposals for Hazard Materials Abatement and Demolition
Attachment 3 Comprehensive Asbestos and Lead Based Paint Surveys (Two Documents Ward
Ward 1
Synopsis of Previous Council Actions
None