CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: December 17, 2025
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Approve Amendment No. 1 to the Professional Services Agreement with CREDE Construction Advisory LLC for
Construction Management and Construction Inspection
Services for the SB HOPE Campus, Extending the
Contract Term and Increasing the Not-To-Exceed Amount
by $1,272,363 (Ward 1)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with CREDE Construction Advisory, LLC (“CREDE”) for construction management and construction inspection services for the San Bernardino HOPE Campus (“Navigation Center”) increasing the not-to-exceed amount by $1,272,363, for a new total contract amount not to exceed $2,363,511, and extending the term of the Professional Services Agreement; and
2. Authorize the City Manager or his designee to execute all necessary documents with CREDE Construction Advisory LLC
City Manager's Comments
The City Manager recommends approval.
Executive Summary
The City is requesting approval of Amendment No. 1 to the Professional Services Agreement with CREDE Construction Advisory, LLC, due to additional costs associated with extending construction management services and adding dedicated infrastructure construction inspection as the SB HOPE Campus moves into the active construction phase. As the project transitions from design and modular fabrication into on-site work, CREDE must continue providing project oversight, coordination with the modular manufacturer, permitting support, and compliance monitoring to keep the project on schedule. In addition, the construction phase now requires nine months of infrastructure inspection to support utility, roadway, and civil improvements. To fully fund these additional needs, Amendment No. 1 increases the agreement’s not-to- exceed amount by $1,272,363. This increase reflects an extension of CREDE’s services through the remaining one month of pre-construction work, eleven-month construction period, and project close-out in the amount of $1,091,148; and inspection services for a nine-month duration in the amount of $181,215 These costs have no impact on the City’s General Fund. Amendment No. 1 will be funded using Home Investment Partnerships American Rescue Plan Program (HOME-ARP) funds, Community Development Block Grant (CDBG) funds, and Homeless Housing Assistance and Prevention (HHAP) Grant funds that are already allocated to the Navigation Center’s construction development budget.
Background
The SB HOPE Campus is a 200-bed facility that provides both congregate and non- congregate housing to support individuals experiencing homelessness. The campus is designed to offer safe interim housing, recuperative care, and on-site supportive services that help residents regain stability and move toward long-term independence.
These services include case management, diversion programs, and employment support. Development of the Navigation Center is funded entirely through restricted grant sources dedicated specifically to this project.
On December 4, 2024, the Mayor and City Council approved a Professional Services Agreement with CREDE Construction Advisory, LLC in an amount not to exceed $1,091,148. The Agreement authorized CREDE to provide development and construction management services during the early design and pre-construction stages, including project planning, schedule and budget tracking, coordination with the modular designer and manufacturer, and initial entitlement and permitting support.
As the Project has progressed, CREDE’s role has expanded in response to the complexity of the modular building process and the multiple regulatory and funding requirements tied to the Navigation Center. Their work has included federal and state labor compliance oversight, grant documentation, procurement support, and coordination with City departments and outside agencies.
The Project is now moving from design and modular fabrication into on-site construction. This next phase involves utility installation, roadway and access improvements, grading, foundation work, modular delivery and setting, and completion of site improvements. To support this transition, the Project requires an extension of CREDE’s construction management services, including two additional months of planning and pre-construction work followed by the fourteen-month construction period. CREDE will also continue supporting the City through project close-out for the remainder of the eighteen-month extension. As part of this Amendment, nine months of infrastructure construction inspection services will be provided during the construction phase to support utility, civil, and site work and ensure compliance with plans and specifications.
To support the design and construction of the SB HOPE Campus, a total of $21,970,382 in restricted grant funds has been allocated to the project’s development budget. Of this amount, $11,810,624.13 has been spent or obligated through existing contracts and purchase orders. As part of the recent approval of Amendment No. 1 to the Mandeville Modular agreement, an additional $214,420 was added to Mandeville’s contract to fully fund its structural steel change order, and $224,406.14 in contingency funding was allocated to cover potential future modular-related costs. These two amounts increased the overall modular budget by $438,826.14. After accounting for these adjustments, the remaining available development budget for the Navigation Center is $9,720,931.73.
Please see budget breakdown below:
*For CDBG timeliness, the City cannot carry over 1.5x of its annual allocation in unspent CDBG funds to the following fiscal year.
Discussion
The Project is now moving into the construction phase, with the City preparing to bid and award a general contractor contract for on-site improvements and utility infrastructure. The modular units are in production at Mandeville’s facility, with delivery anticipated in 2026, and the general contractor will be responsible for foundations, utilities, site work, modular setting, and final site improvements.
Given the complexity of a modular navigation center, the layered grant funding, and the volume of federal and state compliance requirements, the City cannot realistically absorb CREDE’s scope in-house during construction without risking schedule delays, coordination gaps, and compliance findings. CREDE’s continuity, project knowledge, and established relationships with City staff, consultants, and agencies are central to maintaining momentum and ensuring that the project is delivered on time and in compliance with funding requirements.
Scope of Services Under Amendment No. 1
Source Expenditure
Deadline
CDBG April 30th*
Dignity Health June 30, 2026
HHAP-3 June 30, 2026
HOME-ARP Sept 30, 2030
Inland Empire Health June 30, 2026
Loma Linda University N/A
Molina Healthcare March 4, 2027
TOTAL $21,970,382.00 $12,249,450.27 $9,720,931.73
$70,000.00 $0.00 $70,000.00
$300,000.00 $214,420.00 $85,580.00
$4,299,671.00 $0.00 $4,299,671.00
$1,500,000.00 $224,406.14 $1,275,593.86
Dec. 31, 2026
$3,397,541.00 $0.00 $3,397,541.00
$250,000.00 $0.00 $250,000.00
$0.00$11,344,785.00
Total Funding Spent and/or
Obligated
Amount
Available
ARPA $11,344,785.00
$808,385.00 $465,839.13 $342,545.87
Amendment No. 1 extends CREDE’s involvement for the duration of the remaining project phases, including an additional month of planning and pre-construction activities and the eleven-month construction cycle, with contract coverage continuing through close-out for a total extension of twelve months or one year. During this time, CREDE will continue to manage project planning, schedule coordination, design integration, risk management, and contractor oversight to guide the project from pre- construction through completion. This work includes ongoing project planning, schedule and risk management, weekly coordination meetings with Mandeville Modular, the future general contractor, and City staff, and oversight of all activities related to modular fabrication, delivery, and onsite assembly. CREDE will continue to manage change orders, review proposed modifications, and provide recommendations to the City. They will also maintain the monthly reporting structure used throughout the project, including updates on budget, schedule, progress, and documentation required for audit and grant compliance.
The Amendment also maintains CREDE’s role in managing federal and state compliance requirements. This includes enforcing labor standards such as State public works requirements, Davis-Bacon, HUD Section 3, and Buy America/Build America provisions, as well as overseeing contractor onboarding, verification of licenses and registrations, and ongoing monitoring of DIR, CSLB, and other regulatory requirements. CREDE will continue preparing monthly compliance summaries and corrective-action reports to ensure the project remains audit-ready.
Oversight of modular fabrication will also continue as part of their responsibilities.
CREDE will perform quality assurance and quality control visits to the manufacturing facility, verify production progress in the field, and ensure all modular units meet approved plans and specifications. These visits will include the preparation of quality control and quality assurance (QA/QC) reports, photographic documentation, and punch list tracking prior to shipment.
In addition, Amendment No. 1 introduces new infrastructure construction inspection services. These services will provide the City with dedicated inspection coverage for civil and utility infrastructure, including water, sewer, storm drain, dry utilities, access road improvements, and related site work. Inspection coverage will average three days per week, with time allotted for reporting, coordination meetings, and follow-up throughout a construction window of up to nine months. The work may be billed either as a flat monthly fee of $20,135 or on an as-needed basis at a daily rate of $1,500 per inspection day, not to exceed the monthly cap unless expressly approved by the City.
Contract Amount and Term
Under the original PSA, the total not-to-exceed amount for CREDE’s services is $1,091,148. Amendment No. 1 increases this amount by $1,272,363 for a new total not-to-exceed contract amount of $2,363,511.
This increase reflects:
Up to twelve (12) months of continued development and construction management services at the existing flat monthly fee of $90,929; and Infrastructure construction inspection services at a not-to-exceed amount equivalent to $20,135 per month for up to nine (9) months, billed monthly or on an as-needed daily basis, within the overall contract cap.
Please see breakdown below:
The term of the agreement will be extended to cover construction and project closeout for the SB HOPE Campus, aligning with the currently anticipated project completion prior to the end of 2026.
The proposed Amendment No. 1 to the CREDE contract allocates a total of $1,272,363 consisting of $524,181.50 in CDBG funds, $224,000 from the HHAP-3 program, and $524,181.50 in HOME-ARP funds.
Please see funding table below: `
The current total amount available across all funding sources is $9,720,931.73. After allocating $1,272,363 for Amendment No. 1 to the CREDE contract, the City’s remaining available funding across all sources will be $8,448,568.73.
The CDBG program has a total allocation of $3,397,541.00. After applying $524,181.50 toward this amendment, the remaining CDBG balance will be $2,873,359.50.
The HHAP-3 program has a total allocation of $342,545.87. After applying $224,000.00 toward this amendment, the remaining HHAP-3 balance will be $118,545.87. The HOME-ARP program has a total allocation of $4,299,671.00. After applying $524,181.50 toward this amendment, the remaining HOME-ARP balance will be $3,775,489.50.
Coordination with Mandeville Modular and the General Contractor CREDE’s responsibilities require close coordination with both Mandeville Modular and the future general contractor to ensure that the project progresses efficiently and that CREDE Construction Advisory LLC Monthly Rate Total Cost Original Contract Amount - 12 Months $90,929.00 $1,091,148.00 Amendment No. 1 - 12 month extension $90,929.00 $1,091,148.00 Inspection Services - 9 months $20,135.00 $181,215.00
New total Not to Exceed Amount $2,363,511.00
Funding Source Amount
CDBG $524,181.50
HHAP-3 $224,000.00
HOME_ARP $524,181.50
Total Amount of Crede Amendment No. 1 $1,272,363.00
Amendment No. 1 Funding Source Breakdown
the modular and site-built components align. With Mandeville Modular, CREDE will continue managing the production of the modular units, overseeing fabrication activities, tracking quality control procedures, and verifying that the units conform to approved plans and specifications. This includes maintaining regular communication with the design team, monitoring fabrication schedules, and preparing the QA/QC reporting that documents production progress and identify any needed corrections before the units are delivered to the site.
As the general contractor comes on board, CREDE will play a central role in managing the interface between modular delivery and site construction. CREDE will coordinate site logistics such as staging areas, access routes, and the sequencing of work to ensure that foundations, utilities, and site improvements are completed in time for the modular units to be delivered and set. They will oversee the phasing of modular installation, integration of offsite and access road improvements, and the scheduling of construction inspections to keep the work aligned with the project timeline. By managing communication among all parties, CREDE helps avoid delays, reduce change orders, and ensure that modular and onsite construction activities align seamlessly.
This coordinated approach reflects the delivery strategy previously presented to the City Council as part of the Mandeville Modular approval and is intended to reduce risk at the transition points between design, fabrication, and on-site construction.
Project Timeline Update
As previously reported in connection with the Mandeville Modular amendment, staff anticipates the following key milestones for the SB HOPE Campus:
Release of the general contractor bid package: November 2025. Award of general contractor contract: anticipated January 2026. Delivery of modular units to the site: anticipated April–May 2026. Modular setting, utility hookups, and punch list work: expected through approximately October 2026.
Final site improvements (paving, landscaping, irrigation): expected completion by December 2026.
Amendment No. 1 to the CREDE PSA is structured to provide a continuous construction management and inspection presence throughout this period, and to carry through project commissioning and closeout.
2021-2025 Strategic Targets and Goals
Approval of Amendment No. 1 to the PSA with CREDE aligns with Key Target No. 3:
Improved Quality of Life. Completion of the SB HOPE Campus will expand access to shelter, care, and supportive services for the City’s unhoused residents, directly supporting community health, safety, and neighborhood stability.
Fiscal Impact
The fiscal impact associated with this item is $1,272,363, representing the increase to the not-to-exceed amount of the PSA with CREDE. When combined with the existing contract amount of $1,091,148, the amended total not-to-exceed contract amount will be $2,363,511. Amendment No. 1 to allocates a total of $1,272,363 consisting of $524,181.50 in Community Development Block Grant (CDBG) funds, $224,000 from the Homeless Housing Assistance and Prevention (HHAP-3) program, and $524,181.50 in HOME-ARP funds.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with CREDE Construction Advisory, LLC (“CREDE”) for construction management and construction inspection services for the San Bernardino HOPE Campus (“Navigation Center”) increasing the not-to-exceed amount by $1,272,363, for a new total contract amount not to exceed $2,363,511, and extending the term of the Professional Services Agreement; and
2. Authorize the City Manager or his designee to execute all necessary documents with CREDE Construction Advisory LLC
Attachments
Attachment 1 – Amendment No. 1 to the Professional Services Agreement with CREDE Construction Advisory, LLC
Attachment 2 – Original Professional Services Agreement with CREDE Construction Advisory, LLC
Attachment 3 – CREDE Contract Extension and Infrastructure Inspection Proposal (SB HOPE Campus)
Attachment 4 – SB HOPE Campus Project Map and Conceptual Site Plan Ward:
Ward 1
Synopsis of Previous Council Actions:
December 4, 2024 – Mayor and City Council approved a Professional Services Agreement with CREDE Construction Advisory, LLC in the amount of $1,091,148 for development and construction management services for the SB HOPE Campus.
CC: Eric Levitt, City Manager