To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: AWARD a design build contract to Cahill Contractors LLC for the Sherman Recovery Center Project at 2025 Sherman Drive, Pleasant Hill
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE the Criteria Documents, including Addenda 1 through 7, for the above project.
DETERMINE that the bid submitted by Cahill Contractors LLC (Cahill) complies with all requirements of the Project Criteria Documents.
DIRECT that Cahill shall submit two good and sufficient security bonds (performance and payment bonds) in the amount of $13, 227,000 each.
WAIVE any minor irregularities in Cahill’s bid.
FURTHER DETERMINE that Cahill submitted the best value bid for this Project and the bid was responsive and responsible.
DIRECT that, as a condition of contract award, Cahill and its construction subcontractors shall execute a Project Labor Agreement for this Project, as required by the Project Criteria Documents.
AWARD the design-build contract for the above Project to Cahill in the listed amount ($13,227,000) submitted in the bid, including for the alternate pricing for permanent supportive housing, and DIRECT the Public Works Director, or designee, to prepare the contract.
ORDER that, after Cahill has signed the contract and returned it, together with the bonds, evidence of insurance, and other required documents, and the Public Works Director has reviewed and found them to be sufficient, the Public Works Director, or designee, is authorized to sign the contract for this Board.
ORDER that, in accordance with the Project Criteria Documents and upon signature of the construction contract by the Public Works Director, or designee, any bid bonds posted by the bidders are exonerated and any checks or cash submitted for bid security shall be returned.
AUTHORIZE the Public Works Director, or designee, to sign any escrow agreements prepared for this Project to permit the direct payment of retention into escrow for the substitution of securities for monies withheld by the County to ensure performance under the contract, pursuant to Public Contract Code Section 2230.
AUTHORIZE the Public Works Director, or designee, to approve final plans, specifications and design documents necessary to implement and construct the Sherman Recovery Center Project as described in the in the Project Criteria Documents including Criteria Manual Sections 011110 (Summary of Work) and 011114 (Summary of Work - Design Services and Deliverables).
AUTHORIZE the Public Works Director, or designee, to order changes or additions to the work pursuant to the Public Contract Code Section 20142. The extra cost to the County for any change or addition to the work so ordered shall not exceed $210.000.
DELEGATE, pursuant to Public Contract Code Section 4114, to the Public Works Director, or designee, the Board’s functions under Public Contract Code Section 4107 and 4110.
DECLARE that, should the award of contract to Cahill be invalidated for any reason, the Board would not in any event have awarded the contract to any other bidder, but instead would have exercised its discretion to reject the bids received. Nothing in this Board Order shall prevent the Board from re-awarding the contract to another bidder in cases where the successful bidder establishes a mistake, refuses to sign the contract, or fails to furnish required bonds or insurance (see Public Contract Code Sections 5100-5107).
APPROVE and AUTHORIZE the Public Works Director, or designee to execute stipend Agreements for payment of $12,000 stipend each to Gilbane Building Company (Gilbane) and C. Overaa & Co. (Overaa) in accordance with the Request for Proposals issued on November 13, 2025.
DETERMINE the Project is a California Environmental Quality Act (CEQA), Categorical Exemption, pursuant to Article 19, Section 15303 (b) and (c) of the CEQA Statute and Guidelines.
DIRECT the Department of Conservation and Development Director, or designee, to file a Notice of Exemption with the County Clerk, and the State Clearinghouse.
AUTHORIZE the Public Works Director, or designee, to arrange payment of a $50 fee to the County Clerk for filing the Notice of Exemption.
FISCAL IMPACT:
Funding for the project is a partnership between State grants and County Department of Health Services (DHS) funds.
|
Project Component |
Total Cost |
State Grants |
County/DHS Funds |
|
Social Rehab Center |
$17,138,000 |
$16,584,692 (BHCIP) |
$553,308 |
|
Supportive Housing |
$2,612,000 |
$1,500,000 (Homekey+) |
$1,112,000 |
|
TOTAL PROJECT |
$19,750,000 |
$18,084,692 |
$1,665,308 |
In total, 91.6% of the project is funded by State grants, with the remaining 8.4% covered by Department of Health Services funds.
The Total Project Cost of $19,750,000 includes the $13,227,000 design-build contract, as well as County-managed soft costs, including project management, inspections, permits, and a project-wide contingency.
BACKGROUND:
The Sherman Recovery Center Project is intended to be comprised of two complimentary parts constructed on the same parcel. One part will be the social rehabilitation center, and the other part will be permanent supportive housing. The project consists of the demolition of existing abandoned buildings totaling approximately 4,400 square feet, new construction of an approximately 8,600 square foot, single story social rehabilitation center and construction of five supportive housing units with a combined floor area of approximately 2,430 square feet.
The Social Rehabilitation Center will bring a new 16-bed Adult Residential Treatment (ART) facility with a designation as a Social Rehabilitation Facility to the County. Construction will involve demolition of an existing residential structure to make way for the new facility, a single-story facility with a large common area and an open concept living environment. The design will offer private indoor and outdoor spaces to engage in recovery in a homelike environment.
The ART program provides an unlocked, voluntary service environment that provides an alternative to Institution for Mental Disease (IMD) placement where individuals can receive the services and support they need to continue their recovery journey, resolve issues that may interfere with transitioning to a more independent environment, and develop life skills to support community living. The average length of stay at the ART will span 9-12 months with the opportunity to extend up to 18 months with Mental Health Plan approval.
Upon intake to the ART program, a clinician will meet with the client to identify specific goals and objectives. Program participants will have access to individual and group therapy, psychoeducation, case management, peer support, and therapeutic milieu. When discharging a participant from the program, staff will review the specialty mental health and other services being provided to the participant and will identify remaining unmet needs. The focus of the discharge plan will be to set the individual up with housing as well as needed outpatient services and support needed for the person to live the life of their choosing in the community.
The site will include permanent supportive housing immediately adjacent to the Social Rehabilitation Center. The housing is intended to ensure a seamless transition for participants who are ready to move to the next stage of independent living. This forward-thinking development will reinforce the continuum of care, providing ongoing support and stability for residents as they achieve long-term recovery goals. The scope of work for the supportive housing will include five new permanent supportive housing units and shared laundry facilities for the residents.
Three potential design-build entities (DBEs) were selected for the project through a competitive, qualifications-based selection process. On November 2, 2025, the Board, authorized Public Works to invite the shortlisted DBEs to submit proposals for design and construction services to complete the project.
On November 13, 2025, Public Works issued a Request for Proposal (RFP) to the short-listed DBEs: Cahill, Gilbane and Overaa. On January 22, 2026, Public Works received proposals from all three entities. A five-person selection committee consisting of Chief Assistant County Administrator Eric Angstadt, Health Services Department Program Manager Adam Down, Capital Projects Management Division Manager Paul Hundal, Capital Projects Management Senior Project Manager Jeffrey Acuff and Qendrese Alalusi, Project Manager with Vanir Construction Management scored the proposals and conducted interviews with the three teams.
In summary, the best value proposal evaluation process included two categories of factors: (1) the Evaluation Factor Categories evaluated on a “favorable / unfavorable” basis as follows:
A. Green Building Criteria/LEED BD+C Silver
B. Skilled Labor Availability & Safety Record
C. Schedule Compliance
and (2) scored Evaluation Factor Categories evaluated on a points basis as follows:
A. Subconsultant/Subcontractor Outreach/Procurement Plan
B. Criteria Documents Conformance
C. Team Qualifications
D. Best Value Enhancements
E. Interview / Presentation
Of the three bidders, Cahill was awarded the most points in total and by each of the four selection committee members. Based on their unanimous highest scoring proposal, the committee recommends Cahill’s proposal as the best value for the County.
The contractor will be required to enter into a Project Labor Agreement in connection with the construction services to be performed under the contract.
The RFP stipulated that a stipend in the amount of $12,000 would be paid to any bidder, other than the bidder to whom the Contract is awarded, provided that the County determined their bid to be responsive and responsible. The stipend is designed to compensate non-awarded bidders for (1) some of the additional effort bidders expend in developing, refining and enhancing their proposals during the RFP process, and (2) for County’s ownership of the bidder’s proposal documents.
The Project is categorically exempt under Article 19, Section 15303 (b) and (c) of the CEQA guidelines regarding New Construction or Conversion of Small Structures. The social rehabilitation center will be in an urbanized area that is not environmentally sensitive, will be under 10,000 square feet in floor area, will not involve the use of significant amounts of hazardous substances, and will have connections to necessary utilities. Therefore, the recovery center component of the project is categorically exempt under Section 15303 (c). The new construction of five supportive housing units is under the six-dwelling unit limit for urbanized areas. Therefore, the temporary housing component of the project is categorically exempt under Section 15303 (b).
Construction is expected to be completed by Spring of 2028.
CONSEQUENCE OF NEGATIVE ACTION:
Without Board of Supervisors approval, the Sherman Recovery Center Project will not proceed, resulting in the immediate forfeiture of $18,084,692 in State grant funding (BHCIP and Homekey+). Additionally, the County will fail to meet the critical need for community-based mental health beds, forcing continued reliance on more restrictive and high-cost institutional placements. Failure to award the contract at this time will also result in a significant delay in the delivery of five units of permanent supportive housing for vulnerable populations.