For City Council Meeting June 9, 2026
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Mark P. Kling, Chief of Police
Title
Request City Council to Approve: (1) Budget Resolution No. 8529 Amending the 2025-2026 Fiscal Year Budget; (2) Amendment to the Development Agreement to Increase the Guaranteed Maximum Price (GMP) in the Amount of $7,861,852.43 for Phase 2 Construction of the New Police Headquarters Project with Griffin Structures LLC; (3) Approve Construction of the South Parking Lot Expansion Associated with the Recently Acquired Parcel at 126 S. Willow Avenue as Part of the Proposed GMP Increase; (4) Authorize the use of the Remaining GMP Increase Balance as Contingency Funding for Ongoing Phase 2 Construction Costs and Unforeseen Conditions Associated With the Police Headquarters Project and South Parking Lot Improvements; and (5) Authorize the City Manager or Designee to Execute any and all Documents, Subject to Approval as to Form by the City Attorney.
(ACTION)
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RECOMMENDATION
Staff recommends that the City Council:
1) Approve a Budget Resolution Amending the 2025-2026 Fiscal Year Budget;
2) Approve the Amendment to the Development Agreement to increase the Guaranteed Maximum Price (GMP) in the amount of $7,861,852.43 for Phase 2 Construction of the New Police Headquarters Project with Griffin Structures LLC;
3) Approve construction of the South Parking Lot expansion associated with the recently acquired parcel at 126 S. Willow Avenue as part of the proposed GMP increase;
4) Authorize the use of the remaining GMP increase balance as contingency funding for ongoing Phase 2 construction costs and unforeseen conditions associated with the Police Headquarters Project and south parking lot improvements; and
5) Authorize the City Manager, or designee, to execute any and all documents, subject to approval as to form by the City Attorney.
BACKGROUND
In April 2022, staff issued Request for Proposal (RFP) No. 22-062 seeking a qualified development team to design, build, finance, operate, and maintain a new Police Station. Unlike a traditional design-bid-build or design-build procurement, this developer-focused RFP sought a partner capable of delivering the project through all phases, including design, planning, environmental review, financing, and construction. Griffin/Swinerton LLC responded to the RFP and submitted a proposal that outlined a two-phase project delivery approach. The proposed process included refinement of the site design and facility programming, development of the final site plan, schematic design and design development, completion of all required approvals and entitlements, establishment of a Guaranteed Maximum Price (GMP), and project financing. These activities were to be completed in close collaboration with City staff and subject to City review and approval throughout the process.
On November 15, 2022, the City Council approved the selection of Griffin/Swinerton as the Development Team to deliver the new Police Headquarters through a Public-Private Partnership (P3) model. Following this approval, on November 14, 2023, the City Council approved funding for the New Police Station Project and authorized the Development Agreement with Griffin/Swinerton. As part of the overall project budget, the City established a $1,000,000 owner contingency to address unforeseen conditions and project-related needs that may arise during construction, helping to ensure the successful delivery of the project.
Since construction began, the project has encountered a series of significant and unanticipated conditions that were not identified, or known, in the original construction documents during the development of the GMP. These challenges have required substantial additional work, including unforeseen culvert improvements and associated structural modifications, extensive dry utility relocations and off-site infrastructure upgrades involving Southern California Edison, Spectrum, and AT&T, as well as unanticipated culvert construction and water main improvements along Willow Avenue. Additional site and infrastructure demands have also emerged due to unforeseen field conditions, further compounding project complexity. More recently, costs associated with the acquisition and integration of 126 S. Willow Avenue (formerly 130 S. Willow Avenue) into the Police Department campus footprint have added to these financial impacts.
Collectively, these unforeseen conditions have fully depleted the City’s original contingency. As a result, additional funding is now necessary to ensure the project remains on track for completion and that the facility is delivered in a state of full operational readiness.
ANALYSIS/DISCUSSION
Construction of the New Police Headquarters continues to advance and represents one of the City’s most significant investments in public safety infrastructure. As is common with large and technically complex public safety facilities, several unforeseen site conditions, utility conflicts, and infrastructure requirements were encountered during construction that could not have been fully identified or quantified during the design and bidding phases.
To address potential unknowns, the project included a $1,000,000 City contingency and access to a 50 percent share of the developer’s $3,000,000 contingency. These funds were intended to provide flexibility for unforeseen conditions commonly encountered in projects of this size and complexity. However, the cumulative impact of these unexpected construction and infrastructure requirements has now fully exhausted the available contingency funding. As a result, additional authorization is necessary to maintain project momentum, avoid costly delays, and ensure the successful completion and operational readiness of a facility that will serve the public safety needs of the Rialto community for decades to come.
The table below outlines the major unforeseen construction and infrastructure costs encountered during the project. These costs reflect field conditions, utility coordination requirements, design modifications, and operational necessities that were not anticipated during the development of the original construction documents and GMP, but were required to ensure the successful delivery, functionality, and long-term reliability of the facility.
As reflected in the table above, the additional costs are largely attributable to unforeseen site conditions, infrastructure conflicts, and utility requirements that were identified only after construction activities were underway. While extensive planning and design efforts were completed prior to construction, the complexity of the project and existing site conditions revealed several issues that could not have been fully anticipated during the design and bidding phases.
The most significant cost impacts include the construction of a storm water culvert and associated drainage improvements necessary to support the project site, extensive off-site utility relocations and upgrades involving Southern California Edison (SCE), AT&T, Spectrum, and other communications infrastructure providers, utility and civil engineering field revisions, life-safety, communications, security system requirements, generator and electrical distribution modifications, and site preparation activities associated with the future south parking lot expansion. These costs were not discretionary enhancements or scope additions, but rather essential improvements required to address field conditions, utility provider requirements, regulatory obligations, and the operational needs of a modern public safety facility.
Collectively, these unforeseen construction and infrastructure costs total $3,284,661.85 and have fully exhausted the project’s available contingency funding. Without additional authorization, the City risks construction delays, increased project costs, and impacts to the timely completion and operational readiness of the facility. Approval of the requested funding will ensure continued project progress and the successful delivery of a police headquarters designed to serve the public safety needs of the Rialto community for decades to come.
Further impacts have arisen from unanticipated water main improvements along Willow Avenue and additional field conditions encountered during construction that required immediate resolution to avoid delays, escalation claims, and disruption to the critical path schedule. In each instance, staff evaluated alternatives and worked with the project team to manage costs while prioritizing schedule preservation and protecting the City’s investment. However, the aggregate effect of these unforeseen conditions has exceeded the capacity of the original contingency.
Compounding these impacts, the recent acquisition of 126 S. Willow Avenue has created an opportunity to strategically expand and improve the Police Department campus in a manner that was not possible when the original GMP was established. Staff is recommending the City capitalize on this opportunity now by constructing the South Parking Lot expansion as part of the active project rather than deferring this critical improvement to a later phase at likely greater cost. Incorporating the south parking lot into the current construction effort avoids future mobilization and escalation costs, leverages the contractor’s current presence on site, and delivers operational benefits immediately upon occupancy of the new facility.
The proposed South Parking Lot expansion, estimated at $6,345,553 is not simply an added parking project, it is an integral expansion of the Police Headquarters footprint that improves site circulation, operational parking capacity, fleet support, and long-term functionality of the campus. Advancing this component now also aligns with the City’s broader investment strategy by maximizing the benefit of the newly acquired parcel and integrating it into a cohesive public safety campus.
The requested GMP increase also provides the necessary capacity to address remaining project contingency needs as the project moves through the final and often most risk-sensitive stages of construction. This includes funding for remaining unforeseen conditions, memorial-related improvements, utility costs associated with extending AT&T fiber approximately 2,000 feet to the central office, and contingency for completion of both the main facility and the new south parking improvements.
Importantly, this request is not the result of scope creep or discretionary enhancements, but rather a prudent response to legitimate project conditions and strategic opportunities that have emerged during delivery of a complex, once-in-a-generation public safety project. Staff believes addressing these needs now through a comprehensive GMP amendment is significantly more fiscally responsible than returning with multiple piecemeal amendments or risking construction delays that could generate additional claims, schedule impacts, and higher costs.
The requested $7,861,852.43 increase to the GMP is necessary to address net unforeseen construction costs that exceeded the City’s exhausted contingency and to fund construction of the South Parking Lot expansion, ensuring completion of critical utility, infrastructure, operational, and site improvements required for successful delivery of the Police Headquarters Project.
Staff has carefully evaluated available alternatives and determined that approval of the requested GMP amendment is the most fiscally responsible and operationally sound course of action. Delaying these improvements or addressing them through future standalone projects would likely result in substantially higher costs, duplicated mobilization expenses, operational inefficiencies, and disruptions to the City’s long-term public safety objectives.
Staff recommends that the City Council approve the Amendment to the Development Agreement with Griffin Structures LLC to increase the Guaranteed Maximum Price (GMP) in the amount of $7,861,852.43 and authorize the City Manager, or designee, to execute all necessary amendments and related project documents, subject to approval as to form by the City Attorney. Approval of this request will ensure the successful completion of the Police Headquarters Project, provide the infrastructure and operational capacity necessary to support modern policing, and protect the City’s significant investment in a public safety facility designed to serve the residents of Rialto for generations to come.
ENVIRONMENTAL IMPACT
This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines, Section 15302, Class 2 (Replacement or Reconstruction) and CEQA Guidelines, Section 15332, Class 32, In-Fill Development Projects, and no exceptions apply to the use of these exemptions (CEQA Guidelines §15300.2). A Notice of Exemption has been filed by staff with the San Bernardino County Clerk of the Board of Supervisors.
GENERAL PLAN CONSISTENCY
This action is consistent with the following goals in the General Plan:
Goal 3-11: Provide community facilities that adequately support established programs, can accommodate future needs, and are accessible to all members of the community.
Goal 5-7: Maintain a high level of emergency response capability.
Goal 5-8: Provide effective and comprehensive policing services that meet the safety needs of Rialto.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
There is no impact on the Operating Budget.
Capital Improvement Budget Impact
Staff recommends that the City Council approve Resolution No. XXXX to amend the Fiscal Year 2025-2026 budget and appropriate $7,861,852.43 from General Fund Reserves to cover additional costs for the GMP for phase 2 construction of the Police Station project. These funds will be allocated to the Capital Projects Fund, Account No. 33006150‑53001, in the amount of $7,861,852.43.
Licensing
This action does not trigger a requirement for a business license.
Attachments
1. Change Order Summary 1-7
2. Cost Impact Summary
3. South Lot Master Development Budget
4. Rialto PD DA Amendment 06.04.2026
5. Exhibit E-1 South Lot - Sheet Index
6. Exhibit F-1 South Lot Expansion Project Schedule
7. Swinerton PLA
8. Budget Resolution