TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS & RECREATION
SUBJECT
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Award of Contract - Central Plant HVAC and Electrical Upgrades Design PF263.
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RECOMMENDATION
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1) Award a Professional Services Agreement to Yao Engineering, Inc., Pasadena, CA, in the amount of $740,266 for final design, bid support, and engineering services during construction for the Central Plant HVAC and Electrical Upgrades Project (PF263): 2) authorize a 10% contingency of up to $74,027, for a potential not-to-exceed contract amount of $814,293; 3) appropriate $371,373 to the Building Management Fund with a year-end transfer from the General Fund (100) surplus for a revised total project budget of $856,373; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
This project currently has a budget of $485,000 in FY 2026-27 to cover contract and other project costs. The additional appropriation of $371,373 brings the total budget to $856,373 for project PF263- Central Plant HVAC and Electrical Upgrades Design. This project is budgeted in the Building Management Fund; however, it is back filled by the available FY26-27 General Fund budget surplus. This project supports the City Council’s Measure V priorities by investing in improvements that enhance City infrastructure, facilities, and services for the benefit of the Chino community.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Responsible Long-Range Planning
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Revenue: |
Expenditure: 6508310-40010/48004-PF263 |
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Transfer In: 6501000-50000 |
Transfer Out: 1001000-40001 |
BACKGROUND
The City Hall central plant provides chilled water and hot-water service to City Hall and City Hall South. The existing plant and related building heating, ventilation, and air-conditioning (HVAC) and electrical distribution systems are aging and require comprehensive modernization to maintain reliable service to these occupied municipal facilities.
A preliminary assessment and design report was initially prepared based on the existing systems and infrastructure. Current expenditures include costs associated with the preliminary design assessment completed by Yao Engineering, Inc., which evaluated the existing systems and identified options for the proposed upgrades. The preliminary report offered three options to pursue system replacements. On July 6, 2026, all three options were presented to the Infrastructure/Streets Committee. The Infrastructure/Streets Committee agreed with the Consultant’s recommendation to install air cooled chillers due to their efficiency, cost, and suitability for modern building systems.
The selected option will convert the chilled-water plant from water-cooled to air-cooled chillers; replace boilers, pumps, air-handling equipment, variable air volume terminal units, selected direct-expansion equipment, and the building automation system; and replace central plant and City Hall South electrical distribution equipment, the emergency generator and automatic transfer switch, equipment disconnects, and structural supports. The old courthouse has been disconnected from the central systems and is excluded from the design.
ISSUES/ANALYSIS
Yao Engineering was selected from the approved On-Call Consultant List (RFP No. 2023-3003) to prepare the preliminary assessment and design report. Continuing with the firm maintains design continuity and avoids duplicating prior investigative work. Staff requested a final design proposal that includes design, bidding, and construction-phase support.
Staff is recommending that the City Council authorize a Professional Services Agreement in the amount of $740,266 to Yao Engineering, Inc., Pasadena, CA for the design of the Central Plant Replacement and Electrical Upgrades Project. In addition to the contract amount, staff is requesting to authorize up to $74,027 for contingencies for unanticipated work, bringing the total potential contract to $814,293.
Attachment: Yao Engineering, Inc. - Agreement/Proposal