To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Design Build Procurement for the Sherman Recovery Center Project
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
AUTHORIZE the use of design build procurement in accordance with Public Contract Code Section 22164 for the Sherman Recovery Center Project located at 2025 Sherman Drive, Pleasant Hill.
APPROVE the criteria documents, including the concept design and specifications, for the above project.
AUTHORIZE the Public Works Director, or designee, to solicit design build proposals to be received on or about January 22, 2026, and issue Request for Proposal (RFP) addenda, as needed, for clarification of RFP documents, provided the changes do not significantly increase the construction cost estimate.
FISCAL IMPACT:
The total cost of the Sherman Recovery Center Project is estimated at $19,750,000. Of this amount, the cost of the Social Rehabilitation Center and related site improvements is estimated at $17,138,000, and the cost of the permanent supportive housing is estimated at $2,612,000. In total, $18,192,060 (92.1%) is expected to be covered by State grants with the remainder covered by Department of Health Services funds.
The cost of the Social Rehabilitation Center will be funded in part by a State of California Behavioral Health Continuum Infrastructure Program (BHCIP) grant of $16,584,692 (96.7%) with the remainder funded by department funds. The BHCIP grant has been awarded to the County.
The cost of the permanent supportive housing will be funded in part by a State of California Homekey+ grant of $1,607,368 (61.5%) with the remainder funded by department funds. The Homekey+ grant award is pending. If the grant is not awarded to the County, the permanent supportive housing part of the project will be abandoned.
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 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 two-story home with 6 to 8 bedrooms, 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 is planned to include permanent supportive housing, subject to award of grant funding, 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) have been selected for the project through a competitive, qualifications-based selection process. On September 2, 2025, the Public Works Department published a Request for Qualifications (RFQ) soliciting Statements of Qualifications (SOQs) from interested DBEs. Nine SOQs were received. A selection committee comprised of County staff reviewed, scored and ranked the submittals. The three highest ranking DBEs have been shortlisted. With Board approval, Public Works will invite the shortlisted DBEs to submit proposals for design and construction services to complete the project.
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 be built, the $ 16,584,692 BHCIP grant opportunity will be lost, and, if awarded, the $1,607,368 Homekey+ grant opportunity will be lost. Furthermore, the County will lose an opportunity to provide better services to vulnerable County citizens.