To: County of Sonoma Board of Supervisors
Department or Agency Name(s): Department of Health Services; Sonoma Public Infrastructure
Staff Name and Phone Number: Nolan Sullivan, 707-565-4774; Johannes J. Hoevertsz-SPI, 707-565-2550
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Public Health Laboratory & Morgue Facility Change Orders and Funding
End
Recommended Action:
Recommended action
A) Authorize the Director of Health Services, or designee, to accept an additional $1,971,044 from the California Department of Public Health for COVID-19 Epidemiology and Laboratory Capacity Enhancing Detection Expansion Advanced Molecular Detection Supplemental Funding for Major Construction for the new combined Public Health Laboratory and Morgue facilities, increasing the total award from $1,167,240 to $3,138,284.
B) Ratify the Construction Change Orders Numbers 1 through 23, inclusive, for the Public Health Laboratory and Morgue facilities project. 4/5 Vote Required
C) Authorize the Director of Public Infrastructure to execute change orders and other amendments to the construction contract, in form approved by County Counsel, as necessary to complete the Public Health Laboratory/Morgue facilities project, on condition of adequate funding appropriations for each.
D) Authorize the Director of Public Infrastructure to exercise the existing lease holdover option and execute any lease instruments necessary, in form approved by County Counsel, to allow the continued occupancy of the Public Health Laboratory facility at 3313 Chanate Road, on a month-to-month basis after December 23, 2026, as necessary to complete commissioning, relocation, and operational transition activities for the new Public Health Laboratory and Morgue facilities.
E) Adopt a Resolution authorizing budgetary adjustments to the Fiscal Year 2026-2027 Adopted Budget totaling $7,852,374 for completion of the new Public Health Laboratory and Morgue facilities project, including: (1) increasing Department of Health Services State Grant Revenue and Operating Transfer Out appropriations by $1,971,044; (2) increasing Operating Transfer Out appropriations in the Non-Departmental budget by $5,881,330 utilizing available unprogrammed fund balance; and (3) increasing Construction in Progress and Operating Transfers In appropriations for the Public Health Laboratory Project by $7,650,823. (4/5 Vote Required)
end
Executive Summary:
Sonoma Public Infrastructure (SPI) is overseeing construction of the County’s new combined Public Health Laboratory and Morgue facilities in coordination with the Department of Health Services (DHS), the Sonoma County Sheriff and other County partners. This approximately $50 million investment will provide modern, purpose-built space for essential public health laboratory and Sheriff/Coroner services. With construction nearing completion, SPI and DHS are coordinating the funding, remaining construction, and operational transition activities needed to place the facility into service.
The California Department of Public Health (CDPH) has increased the County’s Advanced Molecular Detection (AMD) Major Construction award by $1,971,044, from $1,167,240 to $3,138,284. This item requests authorization for DHS to accept the additional funding and adoption of a budget Resolution increasing DHS State Grant Revenue and Operating Transfer Out appropriations by $1,971,044.
To support completion of the project, this item also requests adoption of a budget Resolution to increase project appropriations by $7,852,374 for contract change orders and authorize up to $5,881,330 in additional funding from the General Fund. Together with the additional $1,971,044 grant award, these actions provide up to $7,852,374 in additional project funding.
This item would also authorize the Director of Public Infrastructure to execute the construction contract amendments necessary to complete the project. SPI and DHS anticipate that relocation into the new Public Health Laboratory space will be completed in January. The requested actions also authorize month-to-month occupancy of the existing laboratory facility after December 23, 2026, as a bridge solution if necessary to complete the operational transition without interrupting essential laboratory services. The Sheriff’s Office plans to begin relocating to the new morgue in mid-November and take full occupancy by December 10, 2026.
Discussion:
The Sonoma County Public Health Laboratory (PHL) provides essential laboratory services supporting infectious disease detection, surveillance, analysis, and response. The new Public Health Laboratory and Morgue facilities project (“Project”) is intended to provide the infrastructure necessary to support these critical functions and replace the laboratory and morgue at the Chanate campus.
As part of the American Rescue Plan Act of 2021, federal funding was made available through the Epidemiology and Laboratory Capacity Enhancing Detection Expansion Advanced Molecular Detection Supplemental Funding for Major Construction program to support major construction and renovation of public health laboratory facilities. CDPH administers this funding for Sonoma County.
Sonoma County was initially awarded $1,167,240 in AMD Major Construction funding. On November 28, 2023, the Board authorized DHS to accept the award and approved corresponding budget adjustments for the Project. CDPH has since increased the County's allocation by $1,971,044. The updated award provides a total of $3,138,284 in AMD Major Construction funding for the Sonoma County PHL for the period August 1, 2021, through July 31, 2026.
The additional funding will further offset eligible costs associated with the Public Health Laboratory component of the Project. CDPH reimburses eligible costs upon submission of invoices, and the County is required to maintain supporting documentation for expenditures charged to the award.
Project Funding and Construction Change Order Costs
SPI has updated the estimated cost to complete the Project. The updated estimate accounts for remaining construction activities, anticipated contract changes, project contingency, and other costs necessary to complete the facility and place it into service.
Part of the need for further funding is due to the costs of change orders that were previously issued on the Project. These change orders were made necessary due to apparent design defects and other errors made by third-party contractors during project planning and design. These defects required mid-project re-engineering and re-design, in part to accommodate completed constructed features and conditions at the Project site. SPI and County Counsel are continuing to develop potential claims against involved parties for recovery of all additional costs related to these discovered defects. Notwithstanding, several construction changes triggered by the changed engineering and redesign were approved during the course of construction authorized to meet critical project completion schedules associated with the need to relocate from the existing Chanate campus by the end of 2026.
Due to existing limits ($210,000) on construction change orders under existing law and current authority delegations, Board ratification of these change orders is required. There are other change orders below this threshold and not related to the general redesign that have been omitted. The subject change orders are numbered 4, 7-23, as follows:
|
Change Order #4 |
Rainscreen Cement Fiber Board Product Revision |
$292,807.00 |
|
Change Order #7 |
Redesign Design Assist Services and Water Softener Upsize |
$251,132.00 |
|
Change Order #8 |
Design Changes (Roof Screen, Bio Seal, Skylight and Water Service |
$59,121.57 |
|
Change Order #9 |
Time Extension for Mechanical Re-design Frag #08 |
$916,449.89 |
|
Change Order #10 |
Peterson Fabrication of Overhead Plumbing and Ducting |
$911,122.93 |
|
Change Order #11 |
Design Changes (Wood Blocking, Roof Screen, Roller Shades) |
$135,810.62 |
|
Change Order #12 |
Peterson Mechanical Complete Work |
$1,231,440.75 |
|
Change Order #13 |
Mechanical Roof Screen VE, Swiss Pearl Tariffs, Steam Sterilizer |
($137,777.17) |
|
Change Order #14 |
Mechanical Room Wall Revisions |
$23,519.97 |
|
Change Order #15 |
ASI 005 Contract Document Cost Impacts |
$45,858.25 |
|
Change Order #16 |
ASI 003 Contract Document Cost Impacts |
$24,178.35 |
|
Change Order #17 |
Mechanical and Plumbing Re-design - OH Re-work |
$123,286.16 |
|
Change Order #18 |
Plumbing, Hydronic, and HVAC Equipment Release and Reconciliation |
$668,122.97 |
|
Change Order #19 |
ASI 006 Mechanical and Plumbing Redesign Cost Impacts |
$2,526,469.85 |
|
Change Order #20 |
Temp Climatization Cost (3/9/26 - 5/4/26) |
$275,944.85 |
|
Change Order #21 |
Mechanical Equipment Seismic Supports |
$30,413.84 |
|
Change Order #22 |
Temp Climatization Costs (5/5/26-8/5/26) |
$88,972.73 |
|
Change Order #23 |
ASI-C and Fiberglass Tee Hydronics Tie-In Installation |
$385,499.00 |
|
Total |
|
$7,852,373.06 |
These change orders have used existing Project appropriations to continue moving the project forward, however, additional funding is now needed to replenish those appropriations for overall Project completion. If approved, the recommended actions would increase project appropriations by up to $7,852,374. This not-to-exceed amount includes a $1,971,044 increase in Advanced Molecular Detection Major Construction funding and up to $5,881,330 from the General Fund.
The requested appropriations provide the financial authority needed to complete the project. Funds will be transferred and expended only as necessary for eligible and authorized project costs. This approach supports responsible stewardship of County resources while advancing completion of a facility that will serve critical public health laboratory and Sheriff/Coroner functions for the community.
Legal Justification for Bypassing Competitive Bidding (Graydon Exception)
Construction change orders exceeding statutory limits ordinarily require competitive bidding unless doing so would be unavailing, impractical, and of no public advantage, and when proceeding with the existing contractor is in the County’s and public’s best interest (Graydon v. Pasadena, 104 Cal.App.3d 631). Competitive bidding for these change orders was impractical and legally unwarranted for the following reasons:
• Operational Integration & Accountability: The change orders involve structural, mechanical, and associated modifications that directly integrate with the original scope already being performed by Whiting-Turner. Introducing a separate contractor to perform this overlapping work would create management difficulties, increase costs, delay completion, and complicate lines of responsibility and quality control.
• CMAR Delivery Method & Existing Site Knowledge: Whiting-Turner is performing the project under a Construction Manager at Risk (CMAR) contract, through which they were deeply involved in preconstruction, design review, and constructability discussions. Their unique familiarity with the project's design evolution and site conditions ensured reliable pricing with minimal risk of unforeseen condition claims. Furthermore, continuing with the existing contractor avoided duplicating already-incurred mobilization and general conditions costs.
• Schedule Urgency & Chanate Deadline: Halting the project to competitively bid and award the redesign work would have severely disrupted ongoing construction. Given the strict deadline to vacate the existing Chanate facilities, the project schedule could not accommodate a mid-project procurement delay.
Accordingly, competitive bidding would not have produced a public advantage and would have increased project costs, delays, and management risks. Waiving competitive bidding and ratifying these change orders with Whiting-Turner is in the County's and the public's best interest.
Facility Completion and Operational Transition
SPI anticipates that the Public Health Laboratory / Coroner’s Office will be available to begin relocation activities by mid-November 2026 and that the facility will be substantially complete and available for occupancy by December 1, 2026. The Sheriff’s Office currently anticipates taking full occupancy by December 10, 2026, and DHS and SPI are coordinating the PHL move to ensure that essential laboratory services continue without interruption. DHS will finalize its relocation plan and schedule based on commissioning, equipment relocation and recalibration, regulatory requirements, and operational needs, with the goal of occupying the new facility as soon as practicable after it becomes available.
The current lease for the existing Public Health Laboratory facility at 3313 Chanate Road permits the County to remain on a month-to-month basis after December 23, 2026. Current monthly rent is $20,338 and will increase by 3 percent to $20,948.14 effective December 23, 2026. Funding for the additional lease cost will come from the project. The recommended actions authorize continued occupancy under these holdover provisions, if necessary, to complete the operational transition while maintaining uninterrupted laboratory services.
DHS, Sheriff’s Office, and SPI will coordinate the move date and duration of any holdover occupancy to minimize the transition period and associated lease expense. Any lease payments incurred during the month-to-month holdover period and after the new facility becomes available will be charged to the Public Health Laboratory/Morgue project as noncapital costs, rather than and not to DHS departmental operating funds. The allowable project funding source for these costs remains to be determined. The total holdover expense will depend on the time needed to complete the transition.
Project Funding Approach
Acceptance of the additional $1,971,044 increases the amount of State/Federal funding available to support the Public Health Laboratory component of the project and reduces the amount that would otherwise need to be supported by other County funding sources.
The proposed funding approach is intended to align AMD reimbursement with actual eligible project expenditures. Funds will be transferred to the capital project as eligible costs are incurred and documented rather than transferring the entire award in advance. Total transfers will not exceed the amount of AMD funding accepted and appropriated by the Board.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Organizational Excellence
Goal: Goal 4: Seek out grant funding to enhance programs and improve infrastructure
Objective: Objective 1: Secure a total of $60 million in grant funding by 2026 for strategic priorities, including technology tools, climate resiliency, and other capital projects.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
November 28, 2023: The Board authorized the Director of Health Services, or designee, to accept $1,167,240 in AMD Supplemental Funding for Major Construction and adopted a resolution increasing appropriations for the design and construction of the new combined Public Health Laboratory/Morgue facility.
September 12, 2023: The Board accepted the Five-Year Capital Improvement Plan for Fiscal Year 2023-24 through Fiscal Year 2027-28.
June 12, 2023: The Board adopted a resolution authorizing a budget adjustment of $5,778,100 for the proposed new Public Health Laboratory and Morgue.
December 14, 2021: The Board approved $8 million in ARPA grant funding and directed additional County funding toward construction of a combined Public Health Laboratory and Morgue facility.
Fiscal Summary
|
Expenditures |
FY 26-27 Adopted |
FY 27-28 Projected |
FY 28-29 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
$7,650,823 |
|
|
|
Total Expenditures |
$7,650,823 |
0 |
0 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$5,679,779 |
|
|
|
State/Federal |
$1,971,044 |
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
$7,650,823 |
0 |
0 |
Narrative Explanation of Fiscal Impacts:
This Board Item requests up to $7,650,823 in additional Fiscal Year 2026-2027 appropriations for the Public Health Laboratory/Morgue project. The funding consists of $1,971,044 in State/Federal funding and up to $5,679,779 in contributions from the General Fund, funded from available unprogrammed fund balance. The $7,650,823 represents a not-to-exceed authorization. Funds will be transferred and expended form the General Fund only as necessary to complete the project.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
1. Budget Resolution
2. Updated CDPH AMD Supplemental Funding Award Letter
Related Items “On File” with the Clerk of the Board:
None