Council moves ahead on navigation center: awards modular design and construction-management contracts, outlines timeline and recuperative-care plan

The San Bernardino City Council approved staff recommendations to award a modular design and manufacturing contract to Mandeville Modular and a development/construction-management contract to CREED Construction Advisory for the city’s planned navigation center.

The project: City staff described the navigation center as an interim housing facility with a planned maximum capacity of up to 200 beds phased over time — roughly 80 congregate-style beds and 20 non‑congregate (private) beds in the initial design, with wraparound services including case management, behavioral health, document readiness and recuperative care. William Lampi, senior management analyst, presented a timeline in which design and predevelopment would follow contract awards, manufacturing and site work would run in parallel, modular units could be placed beginning in June (tentatively), and a certificate of occupancy could be expected in October–November of the target year.

Why recuperative care matters: Staff and advocates explained recuperative care — medical respite for people discharged from hospitals who need short-term medical support but not inpatient hospitalization — could substantially reduce operating costs by enabling CalAIM/Medi-Cal reimbursements. Cassandra Searcy and staff described Victorville’s wellness campus as an example in which recuperative-care billing reduced net city operating costs, and staff suggested up to 70 beds could be configured to accommodate recuperative care within the congregate footprint by building additional accessibility into the design.

Cost and contingencies: The Mandeville modular contract was presented at just over $10 million with a 15% contingency (staff had recommended 15% instead of the more typical 10% to preserve flexibility for vertical expansion and recuperative‑care design work). CREED’s award for development services was presented at just over $1 million. Staff said the design and state modular plan-check process will take place before a general contractor is selected and that federal funding layers require tight labor‑compliance auditing; CREED’s scope includes Davis‑Bacon and prevailing‑wage compliance monitoring.

Funding and timing: Staff said much of the immediate awards would be made from ARPA funds and that, after the awards and contingencies, approximately $560,000 in ARPA surplus would remain. Staff outlined two options for using the remaining ARPA surplus: commit the full surplus to street repairs (Option 2), or split the surplus and use part toward acquisition of Palm Field Park as a transitional-housing site while retaining a portion for street repairs (Option 1). Council debated the long-term restrictions that accompany ARPA use for property acquisition — specifically, that ARPA-restricted property purchases can carry long use restrictions (staff noted a 20‑year restriction on property purchased with ARPA in some scenarios).

Council action and votes: After extended public comment and council debate, council approved the staff recommendations to award the Mandeville and CREED contracts and to proceed with the modular navigation center design and procurement. Council also approved the 15% contingency level as a staff-recommended option to preserve design flexibility. Councilmembers asked staff to return with a detailed implementation schedule, a workshop on operations and recuperative care, and a procurement schedule for a lead operator and recuperative-care provider.

Public input: Dozens of public commentators spoke during both the special-session public-comment period and later during the regular meeting. Speakers included outreach workers and residents who urged faster shelter availability and said existing outreach contracts underperform; other speakers urged the council to preserve continuity in the city manager’s office while the navigation center project proceeds.

What’s next: Staff will finalize the master schedule, present final construction documents and issue a request for bids for a general contractor once design documents are complete; the city will also release an RFP for a lead operator and recuperative-care provider. Staff said it would present a workshop on operations and the recuperative-care financial model, and will meet with HUD representatives about CDBG timeliness and other grant rules.

Ending note: Council’s approval begins contract execution with modular manufacturer and development manager; the council asked staff for routine updates on schedule, funding compliance and operator selection.