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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 4, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Approve Increase of Contingency Budget for the Task Order with Rick Engineering Company for Engineering
Design Services for the Navigation Center in the Amount of $100,000 for a Total Contingency Budget of $150,000
(Ward 1).
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the increase of contingency budget for the Task Order with Rick Engineering Company for engineering design services for the Navigation Center (Project) in the amount of $100,000 from the previously allocated Homeless Housing, Assistance and Prevention (HHAP) funds, increasing the total contingency budget to $150,000; and
2. Authorize the City Manager or designee to execute all documents with Rick Engineering Company; and
3. Authorize the City Manager to expend the contingency fund, if necessary, to complete the Project.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
The Task Order with Rick Engineering Company to provide engineering design services for the Navigation Center has expended approximately $44,000 of its original $50,000 contingency on electrical design work and an additional $100,000 in contingency funding is needed. This increase in contingency will provide sufficient flexibility to address any additional design services or unforeseen conditions that may be identified as the project progresses, helping to avoid delays and ensure the continued and timely completion of the Navigation Center project. The total proposed 3 1
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design cost and contingencies will be paid for by the previously allocated Homeless Housing, Assistance and Prevention (HHAP) funds.
Background
The City of San Bernardino previously declared a Homeless State of Emergency in 2022 and recently renewed the emergency declaration. The city, through a variety of sources, has received $21,800,000 for the construction of a Homeless Navigation Center, to be located at the former School of Hope site, located at 796 East 6th Street within the City. The Homeless Navigation Center is designed to provide emergency shelter and wrap-around services for the City’s homeless population.
The School of Hope site is a former active school site that provided a variety of services to special needs students from the mid-1980s to recently. 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 formerly consisted of a u-shaped complex of classrooms and administrative buildings around a central internal courtyard area.
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. During the demolishing the asbestos was removed and hauled away by the contractor to an authorized dumping site The City acquired the property from the Water Department in 2023 for use as the Navigation Center site.
On November 1, 2023, the Mayor and City Council approved $808,385 in Homeless Housing, Assistance, and Prevention (HHAP) funds for the Navigation Center. These funds were provided by the County of San Bernardino and may be used towards design and pre-development costs.
On December 4th, 2024, the Mayor and City Council approved an agreement for Design Services and Purchase of Delivery of Good with Mandeville Modular in the amount of $10,093,027, including a 15% contingency budget. A Professional Services Agreement was also awarded to CREDE Construction Advisory in the amount of $1,091,148 for Development Management Services of the Navigation Center.
On October 15th, 2025, the Mayor and City Council approved the task order with Rick Engineering Company for engineering design services for the Navigation Center in the amount of $250,000 for total design cost and contingencies.
To expedite the completion of the Project, the existing complex of buildings at the former School of Hope site—where hazardous materials had been previously identified in a July 2022 report by L.Y. Environmental, Inc. was abated and fully demolished ahead of schedule as of July 21, 2025.
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Discussion
Due to delays in receiving on-site civil improvement plans from Mandeville Modulars, despite multiple deadline extensions discussed during weekly coordination meetings, the City elected to proceed with an on-call engineering consultant to complete the necessary site improvement designs for the Navigation Center project.
On June 24, 2025, staff solicited proposals for engineering design services, reviewed them for completeness, and identified Rick Engineering Company as the lowest responsive proposer. City Council subsequently approved a Task Order with Rick Engineering Company in the amount of $200,000, along with a $50,000 contingency, for a total design services budget of $250,000 funded by HHAP funds.
After the Task Order was approved, the City determined that electrical engineering design services were required and requested that these services be added under Rick Engineering Company’s contract. This scope was not anticipated in the original agreement. An addendum to the original task order was executed authorizing the use of $44,000 from the approved contingency to retain Rick Engineering’s electrical subconsultant, Z&K Consultants, Inc., bringing the total authorized contract amount to $244,000. The electrical design services include preparation of electrical plans, load calculations, service equipment design, power distribution and wiring diagrams, and coordination with Southern California Edison. As a result, only a limited contingency balance remains.
Additionally, various permit applications have been initiated. During these reviews, additional documents have been requested to issue the permits (water-net analysis, structural calculations, etc.). To date approximately $30,000 to $40,000 is needed to address the current plan review comments, which may increase depending on additional permitting comments. The increase in the contingency budget will allow the current permit application comments to be addressed and provide a budget to address future comments.
The funding for the additional design services contingency budget will be provided from the available balance of HHAP funds that was previously allocated to the Navigation Center project. The proposed increase to the contingency budget from $50,000 to $150,000 will provide flexibility to address permitting comments and unforeseen conditions, helping ensure the project remains on schedule. 2021-2025 Strategic Targets and Goals
The 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
The total fiscal impact associated with this action is $100,000. The funding will be 3 1
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provided from previously allocated Homeless Housing, Assistance and Prevention (HHAP) funds.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the increase of contingency budget for the Task Order with Rick Engineering Company for engineering design services for the Navigation Center (Project) in the amount of $100,000 from the previously allocated Homeless Housing, Assistance and Prevention (HHAP) funds, increasing the total contingency budget to $150,000; and
2. Authorize the City Manager or designee to execute all documents with Rick Engineering Company; and
3. Authorize the City Manager to expend the contingency fund, if necessary, to complete the Project.
Attachments
Attachment 1 Task Order Addendum 1 – Electrical Design Services Attachment 2 Task Order with Rick Engineering Company
Attachment 3 Location Map
Ward: First Ward
Synopsis of Previous Council Actions:
December 4, 2024 Award of Design Services and Purchase Agreement with Mandeville Modular for Site Design, Modular Design, and Purchase of Modular Units and Award of Professional Services Agreement with CREDE Construction Advisory for Development Management Services (Ward 1)
October 15, 2025 Approve a Task Order with Rick Engineering Company for Navigation Center Civil Engineering Design Work for a total amount not to exceed $250,000 (Ward 1)
CC: Eric Levitt, City Manager