CITY OF MENIFEE
SUBJECT: Contract Change Order with NPG, Inc. for the Beth Drive Street Improvements Project
MEETING DATE: February 4, 2026
TO: Mayor and City Council
PREPARED BY: Diego Guillen, Senior Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute Contract Change Order (CCO) No. 1 with NPG, Inc. increasing the compensation by $48,447, for a total contract amount not-to-exceed $257,424, for the Beth Drive Street Improvements Project, Capital Improvement Program Project (CIP) No. 22-28.
DISCUSSION
The Beth Drive Street Improvements – Murrieta Road to Melvin Street Project, CIP Project No. 22-28 (Project), rehabilitated the section of Beth Drive within the Project limits by removing the existing damaged Asphalt Concrete (AC) dike and adjacent Asphalt Concrete Pavement and installed approximately 1,200 linear feet of concrete curb and gutter. These improvements allow Beth Drive to sustain heavy rain events and prevent further deterioration of the roadway's condition.
On September 3, 2025, the City Council approved a construction budget of $259,874.70 and awarded a construction services contract (Contract) to NPG, Inc. (Contractor) in the amount of $208,977. Construction work for the Project began in October 2025.
Although staff make every effort to carefully study and anticipate the extent of the scope of work required to achieve project goals, unforeseen conditions are often encountered as a project progresses. Unknown site conditions and utility conflicts discovered during construction activities can result in the requirement of additional work outside of the original scope and Contract amount.
These changes are addressed in the form of a Contract Change Order (CCO).
During construction, it was determined that the existing roadway lacked sufficient cross slope, causing excessive water pooling during rain events. To properly direct runoff to the roadway edges and the newly installed curb and gutter, additional asphalt was required to establish the appropriate cross slope within the Project’s limits. The improvements included in CCO No. 1
City of Menifee Staff Report
CIP 22-28 NPG CCO No. 1
February 4, 2026
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would reduce flooding and standing water, which can occur even during minor storms and lead to recurring drainage issues, increased maintenance, and higher operational costs.
The proposed CCO No. 1 includes $48,447 to compensate the Contractor for the labor and materials necessary to correct the roadway cross slope and ensure proper drainage. These improvements protect the pavement structure by reducing water infiltration that accelerates cracking, potholes, and base failure to extend pavement life, reduce future repair expenses, minimize flood-related disruptions, and improve public safety. The Contract activity, including CCO No. 1, is summarized in Table 1 below.
TABLE 1 - CONTRACT ACTIVITY SUMMARY
Contract
Activity
Approval Date Summary of Changes Amount
Original
Contract
September 3, 2025 Original construction services $208,977 CCO No. 1 PENDING Additional labor and asphalt to
establish the appropriate cross slope
(19,000 SF)
$48,447
TOTAL $257,424
The amount of CCO No. 1 is $48,447, or 23% of the original Contract amount. The amount of CCO No. 1 exceeds the City Manager’s signing authority. Pursuant to Resolution No. 25-1569 and Menifee Municipal Code §3.12.150, amendments or change orders in the aggregate amount greater than 10% of the agreement amount that exceed the City Manager’s signing authority shall be approved by the City Council.
STRATEGIC PLAN OBJECTIVE
Connectivity and Mobility
FISCAL IMPACT
The fiscal impact of the proposed CCO No. 1 with the Contractor is $48,447, increasing the total Contract value to $257,424. Funding for the proposed CCO No. 1 is available in the Project’s adopted fiscal year 2025/2026 budget within the Senate Bill (SB) 1 Fund (4320-PWD-CIPS-902- 2201-690000), as summarized in Table 2 below.
TABLE 2 – PROJECT BUDGET
Fund Project String No. Available Budget Anticipated Cost SB 1 CIP22-28.2201.CON.CAE $83,166 $48,447
TOTAL: $83,166 $48,447
City of Menifee Staff Report
CIP 22-28 NPG CCO No. 1
February 4, 2026
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ATTACHMENTS
1. Project Location Map
2. CCO No. 1
3. Original Contract