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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 5, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Approve Addendum No. 4 with Rick Engineering Company in the amount of $92,300 for the Navigation Center Project, funded from the previously approved Project construction contingency, increasing the Task Order amount from
$350,000 to $442,300 (Ward 1).
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Addendum No. 4 with Rick Engineering Company for engineering design services in the amount of $92,300, increasing the Task Order authorization from $350,000 to $442,300. Funding will be provided from the previously approved Navigation Center construction general fund loan allocation and does not increase the overall project budget; and
2. Authorize the City Manager or designee to execute all documents with Rick Engineering Company; and
City Manager's Comments
This addendum No. 4 with Rick Engineering Company is to allow for additional utility design and for additional design required on the project.
Executive Summary
The Mayor and City Council previously authorized a total Rick Engineering Task Order budget of $350,000. That authorization has now been fully committed and nearly all expensed through the original Task Order and Addenda 1 through 3. Approval of Addendum No. 4 will increase the Task Order authorization by $92,300 to $442,300.
The increase will be funded from the Navigation Center Project's previously approved adopted budget and does not increase the overall project budget. The additional work 3 1
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is necessary to complete engineering revisions and construction support required to deliver the project.
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 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.
On January 21, 2026, the Mayor and City Council approved a loan from the City’s General Fund in the amount of $8,768,982 for the Navigation Center with the understanding that the City would work to secure additional outside funding for the project to help pay itself back. The loan was necessary to fully fund the construction 3 1
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agreement with the general contractor, Spec Construction Co Inc., who would be responsible for preparing the site for the modular units. The agreement with Spec Construction was for $15,037,000, and the City requested Council to approve $2,255,550 in additional project contingencies, for a total budget of $17,292,550 for the general contractor. At the time, only $8,523,568.73 in federal, state, and local grant funding remained in the project’s available budget, which necessitated a loan from the City’s General Fund.
On February 4, 2026, the Mayor and City Council approved an increase to the 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 budget of $350,000.
Since approval of the General Fund loan, the City secured an additional $1,979,926.86 for the project through the reallocation of unspent Community Development Block Grant (CDBG) and Community Development Block Grant CARES Act (CDBG-CV) funds. The Mayor and City Council approved these reallocations on March 4, 2026, reducing the amount of General Fund resources anticipated to be needed for the project ("General Fund Loan Savings").
While these additional grant funds reduced the project's reliance on the General Fund loan, a portion of the reallocated funding had already been incorporated into the overall project budget. In addition, subsequent Council actions authorized the use of General Fund loan proceeds for additional project expenditures. As a result, the available balance of the General Fund loan was reduced to $1,072,752.52.
Total Project Funding Chart Below:
COUNCIL APPROVED DEVELOPMENT FUNDING
Source Allocation Utilized Available
ARPA $11,344,785.00 $11,344,785.00 $0.00
CDBG $3,682,700.80 $3,682,700.80 $0.00
CDBG-CV $1,272,805.06 $1,272,805.06 $0.00
DIGNITY HEALTH GRANT $250,000.00 $250,000.00 $0.00
GENERAL FUND LOAN $8,768,982.00 $7,696,229.48 $1,072,752.52 HHAP-3 $808,385.00 $808,385.00 $0.00
HOME-ARP $4,299,671.00 $4,299,671.00 $0.00
INLAND EMPIRE HEALTH GRANT $1,500,000.00 $1,500,000.00 $0.00 LOMA LINDA UNIVERSITY DONATION $70,000.00 $70,000.00 $0.00 MOLINA HEALTHCARE GRANT $300,000.00 $300,000.00 $0.00
Total $32,297,328.86 $31,063,966.34 $1,072,752.52
Note: If Council approves Amendment No. 2 to the Agreement with Mandeville Modular, which is another item on this agenda, the remaining amount of available allocated funds will be reduced from $1,072,752.52 to $769,551.88.
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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 Homeless Housing, Assistance and Prevention (HHAP) funds. The design services budget was later increased to $350,000 on February 4, 2026.
To date, the full $350,000 design services budget has been authorized for Rick Engineering Company’s services. This includes Addendum 1 ($44,000), Addendum 2 ($77,200), and Addendum 3 ($28,800) and the original Task Order.
Rick Engineering – Authorized Design Services Summary
Approving Addendum 4 would allow additional work to be completed to revise utility plans, and provide additional services for landscape improvements, construction administration, electrical design, and closeout support. These additional services would be authorized under Addendum 4 to the Task order and cost an additional $92,300.
If Council approves the Mandeville Contract Amendment and the Rick Engineering Task Order Amendment, both of which are included on this agenda, the remaining General Fund loan balance will be reduced from $1,072,752.52 to $677,251.88. This reflects the allocation of $303,200.64 to the Mandeville Contract Amendment and $92,300.00 to the Rick Engineering Task Order Amendment.
Rick Engineering Task Order Summary
ActionAmountRunning TotalOriginal Authorized Amount$200,000 $200,000 Addendum 1$44,000 $244,000 Addendum 2$77,200 $321,200 Addendum 3$28,800 $350,000 Addendum 4$92,300 $442,300 3 1
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Please see breakdown below:
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
Approval of this action will increase the Rick Engineering Task Order authorization from $350,000 to $442,300 by utilizing $92,300 from the remaining General Fund loan balance previously approved for the Navigation Center project. This action does not increase the overall Navigation Center project budget or require any additional General Fund appropriation. Following approval of this amendment, the remaining available General Fund loan balance will be reduced from $769,551.88 to $677,251.88 Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Addendum No. 4 with Rick Engineering Company for engineering design services in the amount of $92,300, increasing the Task Order authorization from $350,000 to $442,300. Funding will be provided from the previously approved Navigation Center construction general fund loan allocation and does not increase the overall project budget; and
1. Authorize the City Manager or designee to execute all documents with Rick Engineering Company; and
Attachments
Attachment 1 Task Order Addendum 4
Attachment 2 Task Order Addendum 3
Attachment 3 Task Order Addendum 2
Attachment 4 Task Order Addendum 1
Attachment 5 Task Order with Rick Engineering Company
Attachment 6 Location Map
Ward: First Ward
DescriptionAmountAvailable General Fund Loan Balance$1,072,752.52 Less: Mandeville Change Order No. 2($303,200.64)Balance Available$769,551.88 Less: Rick Engineering PO Increase($92,300.00)Remaining General Fund Loan Balance$677,251.88 3 1
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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)
February 4, 2026 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 budget of $350,000 (Ward 1).
CC: Eric Levitt, City Manager