TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Approve Amendment No. 5 with Cannon Corporation dba Penco for Additional General Plan Check Services
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RECOMMENDATION
recommendation
1) Appropriate $200,000 to the Fiscal Year 2025-26 Development Engineering Program Budget from the available General Fund balance for plan check with a corresponding increase in plan check revenue in the same amount; 2) approve contract amendment No. 5 with Cannon Corporation dba Penco, Contract 2024-067, for $200,000 for a revised contract amount of $1,145,000 for additional general plan check and other related engineering services; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
Requires appropriation of $200,000 to the FY 2025-26 Development Engineering Program Budget using available General Fund balance. Plan check service costs are fully recovered through user fees charged to the developers; therefore, staff will increase the plan check revenue projection by $200,000 for FY 2025-26.
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:
• Superior Customer Service
• Financial Stability
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Revenue: 1007010 - 56450 |
Expenditure: 1007010 - 43570 |
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BACKGROUND
On March 30, 2023, the City released a Request for Proposals (RFP No. 2023-8001) for “General Plan Check Services and Other Related Engineering Services” via PlanetBids, in accordance with City procurement policies. The City received nine proposals by the closing date of April 20, 2023.
On June 20, 2023, the City Council awarded professional services agreements to three firms for these services, including Cannon Corporation. The agreement with Cannon Corporation included an initial one-year term with two optional one-year extensions, both of which the City subsequently exercised.
Effective July 1, 2025, the agreement was renewed in an amount not to exceed $400,000. Subsequently, in April 2026, the agreement was amended to increase compensation by an additional $150,000 due to increased plan check activity and development demand. This increase in expenditure and revenue was included in the FY 2025-26 Midyear Budget.
ISSUES/ANALYSIS
Staff is now requesting a further increase of $200,000 due to several large-scale development projects recently submitted to the City that require extensive and complex engineering plan check review services. These reviews are highly technical, time-intensive, and costly, necessitating continued consultant support to maintain project review timelines, ensure timely processing of development applications, and maintain adequate service levels for the development community.
The Public Works Department collects fees from developers for engineering plan check services associated with development construction activity. The appropriation of the additional $200,000 is fully offset by fees collected from developers for plan check services.
During the current fiscal year, engineering plan check activity assigned to Cannon Corporation has continued to increase, substantiating the need to increase the contract amount to accommodate anticipated services throughout the remainder of the fiscal year. In addition to the higher volume of work, Cannon has consistently provided high‑quality service with reliable expertise and quick turnaround times, which has been instrumental in keeping projects on schedule and maintaining service levels to the development community. Accordingly, staff is requesting approval of an amendment to the agreement in the amount of $200,000, resulting in a revised total contract amount for Fiscal Year 2025-26 of $750,000.
The proposed amendment will allow staff to maintain continuity and avoid delays in processing engineering plan check services for several significant ongoing development infrastructure projects throughout the City. Therefore, staff recommend that the City Council approve Amendment No. 5 to the professional services agreement with Cannon Corporation for an additional $200,000 for additional general plan check services and other related engineering services.
Attachment: Exhibit A - Amendment No. 5 - Cannon Corporation