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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: September 02, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: $250,000 Budget Increase for Animal Shelter Modular Building Site Improvements, Increasing the Construction and Project Support Budget to $1,825,370. (Ward 3)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2026-150:
1. Authorizing the Director of Finance and Management Services to amend the FY 2026/27 Capital Improvement Plan budget with an additional $250,000 from the Measure S Fund for the Project; and
2. Approving the increase to the project budget for the Animal shelter improvements Project (Project) in the amount of $250,000, increasing the total budget amount to $1,825,370.00; and
3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
During construction of the Animal Shelter Improvement Project, unforeseen site conditions and additional agency requirements resulted in costs exceeding the previously approved project budget. The primary additional costs were related to revised electrical service requirements mandated by Southern California Edison (SCE), which required design modifications, equipment upgrades, and additional construction to meet SCE’s service requirements.
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Additionally, the use of San Bernardino Municipal Water Department (SBMWD) property for supplemental parking required security and environmental improvements to comply with SBMWD conditions. Staff requests approval of an additional $250,000 appropriation from the Measure S Fund to cover eligible project costs, complete the remaining work and project closeout, and close out the Animal Shelter Improvement Project.
Background
In 2023, Riverside County Animal Services notified cities receiving service that it would no longer provide shelter services after June 30, 2024. In response, the City of San Bernardino established a regional partnership agreement to provide shelter services to Colton, Fontana, Rialto, Grand Terrace, and Loma Linda, effective July 1, 2024.
On December 6, 2023, the Mayor and City Council adopted Resolution No. 2023-188 authorizing the City Manager to take the necessary steps to establish a California Nonprofit Public Benefit Corporation to support the Department of Animal Services Programs and Initiatives Regional Partnership for Animal Services.
On April 17, 2024, the Mayor and City Council adopted Resolution No. 2024-067, approving the allocation of $4,000,000 from the General Fund to support necessary improvements and upgrades to the Animal Shelter facility. Following this adoption, the Cities of Colton, Fontana, Grand Terrace, Loma Linda, and Rialto approved the participation agreements with the City of San Bernardino under the regional partnership agreement with an effective date of July 1, 2024.
On August 7, 2024, the Mayor and City Council adopted Resolution No. 2024-170, authorizing the City Manager to execute a Good Purchase Agreement with Horizon Structures in the amount of $2,096,324 for the acquisition of modular buildings for the Animal Shelter facility. The City of San Bernardino's share of the cost is $1,111,052, with the remaining $985,272 funded through the regional partnership agreement.
The Mayor and City Council also adopted Resolution No. 2024-151 on August 7, 2024, authorizing the City Manager to execute a Good Purchase Agreement with William Scotsman Inc. in the amount of $406,492 for the purchase of a modular office for the Animal Shelter. The City of San Bernardino's share of this cost is $217,745, with $188,747 covered by the regional partnership.
On June 4, 2025, the Mayor and City Council approved the award of a Construction Agreement with Leonida Builders Inc. in the amount of $1,075,370.00 for the construction of concrete pads, utility connections, and other site improvements necessary for the installation of twelve modular buildings and associated parking lot improvements for the Animal Shelter Improvement Project. The City Council also authorized $500,000.00 for construction contingencies, construction management, and administrative costs associated with the project.
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Discussion
The Animal Shelter Improvement Project included the installation of twelve (12) modular buildings and the development of an additional parking area to enhance the facility’s operational capacity and support the increasing demand for animal services.
The modular buildings expanded kennel capacity and provided additional operational space needed to implement the Regional Partnership for Animal Services.
The modular buildings significantly increase the shelter's kennel capacity and provide additional space to support services under the Regional Partnership for Animal Services with the Cities of Colton, Fontana, Grand Terrace, Loma Linda, and Rialto.
These improvements position the shelter to meet current operational demands and accommodate anticipated future service needs.
During construction, Southern California Edison required revisions to the project's electrical infrastructure that were not anticipated in the original construction documents. Compliance with these requirements necessitated additional design services, electrical equipment, and construction work. Additional site improvements were also required to satisfy San Bernardino Municipal Water Department requirements for the use of adjacent property for supplemental parking.
In addition, the project is expected to incur additional costs related to WQMP compliance, environmental requirements, and other unforeseen project expenses.
These changes have increased the overall project costs beyond the previously authorized contingency budget, resulting in the need for an additional $250,000 appropriation.
Project Budget and Funding Summary
Description Amount
Original Contract Award $1,075,370.00
Original Contingency $500,000.00
Original Project Budget $1,575,370.00
Current Project Costs
Original Contract Amount ($1,075,370.00)
Authorized Change Orders ($219,909.26)
City Administrative Costs ($82,370.15)
Total Costs to Date ($1,377,649.41)
Remaining Original Budget/Contingency $197,720.59
Additional Project Costs Needed
Additional Construction/Budget Needs $388,406.65
Additional Contingency $59,313.94
Total Additional Costs $447,720.59
Less: Remaining Original Contingency ($197,720.59)
Additional Funding Requested $250,000.00
A total budget increase of $250,000 is recommended to cover the current $447,720.59 3 1
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needed and additional items that may be identified as the Project progresses.
Other funding sources were explored and reviewed; however, no other funds have sufficient availability to support the proposed $250,000 contingency increase.
Therefore, Measure S Fund balance is recommended as the funding source for the additional $250,000.
2021-2025 Strategic Targets and Goals
This Project is consistent with Key Target No. 2 Focused Aligned Leadership and Unified Community and Key Target No. 3 Improved Quality of Life. The twelve new kennel buildings and the parking lot improvements will enable the City to serve the needs of both our residents and their pets while engaging the community to assist the Department by volunteering, fostering and adopting pets from the shelter.
Fiscal Impact
The additional $250,000.00 required for the project will be funded through Measure S.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2026-150:
1. Authorizing the Director of Finance and Management Services to amend the FY 2026/27 Capital Improvement Plan budget with an additional $250,000 from the Measure S Fund for the Project; and
2. Approving the increase to the project budget for the Animal shelter improvements Project (Project) in the amount of $250,000, increasing the total budget amount to $1,825,370.00; and
3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project.
Attachments
Attachment 1 Resolution 2026-150
Attachment 2 Location Map
Ward:
Word 3
Synopsis of Previous Council Actions:
December 6, 2023 Resolution No. 2023-188 of the Mayor and City Council of San Bernardino, California, Authorizing the City Manager to the take 3 1
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the steps necessary to establish a California Nonprofit Public Benefit Corporation to support the Department of Animal Services Programs and Initiatives Regional Partnership for Animal Services
April 17, 2024 Authorize and Appropriate Funding for Animal Services for the Preparation of the Regional Partnership Agreements – Site Improvement Costs
June 5, 2024 Authorize and Appropriate Funding for Animal Services for the Preparation of the Regional Partnership Agreements– Staffing Costs
August 7, 2024 Authorize the purchase office Modular Building Reso No. 2024- 151
June 4, 2025 Approve the award of a Construction Agreement with Leonida Builders Inc. in the amount of $1,075,370.00 for the
construction of concrete pads, utility connections, and other site improvements necessary for the installation of twelve modular buildings and associated parking lot improvements for the Animal Shelter Improvement Project. Authorize
$500,000.00 for construction contingencies, construction management, and administrative costs associated with the project.
CC: Eric Levitt, City Manager