CONTRACT CHANGE ORDER
CITY OF PALO ALTO
DEPARTMENT: ELECTRIC UTILITIES OPERATIONS
Electric Utility Construction Services Project
Contract Change Order # 1
Project Title: Grid Modernization Project No.: EL-24000 Contract Number: C23185980 Date: 4/16/2024
Contractor: VIP Powerline Corp Change Order No.: 1
Description of Change Order
Background Information: The Electric Grid Modernization project is to enhance the distribution system’s grid resiliency and reliability in a manner that will continue to accelerate the City’s clean energy and decarbonization goals. Palo Alto’s grid must be modernized to reach the capacity required to electrify all homes and cars.
The original contract C23185980 was approved by City Council on April 10, 2023 under staff report 2303:1119. The original terms of the contract was an annual not-to-exceed amount of $4,000,000 per year, for a five-year contract not-to-exceed a total amount of 20,000,000 from April 10, 2023 through April 9, 2028.
https://cityofpaloalto.primegov.com/meeting/document/1862.pdf?name=Item%2010%20Staff% 20Report
Change Order Justification: To meet the expected increase in demands, Grid Mod will increase network capacity. Capacity increases will include the following work: converting 4kV systems to 12kV; installing more distribution transformers with greater capacity; and rebuilding secondary networks by increasing conductor size, replacing utility poles, and creating more secondary networks.
Staff recommends increasing the annual amount from $4 million to $8 million for the remaining four years of the contract and increasing the five-year not-to-exceed amount of the contract from $20 million to $36 million.
Description of Work to be Performed: Contractor will provide electric line construction crew(s) to be used on an ongoing basis to assist with construction and operating activities on the City’s 12kV and 4kV Electric Distribution System. The City proposes to utilize contract labor and equipment to supplement the City’s crews in the construction of necessary maintenance, pole replacements, and existing facilities upgrades on its Electric System. The project includes replacing 1,400 pole top transformers and 341 underground transformers. Furthermore, 296,300 circuit feet of open wire secondary conductors in the distribution system will be replaced with aluminum aerial cable.
Approximately 1,500 or 25% of 6,000 poles will need to be replaced and increased in size to support the weight of the new transformers, wires, and equipment.
Incorporates Field Order Number(s): Bid items 1 - 20
Cost Time
DocuSign Envelope ID: 62DD72C0-4AF6-4490-BEC3-AA490040557D This Change Order will:
No cost change: N/A
X Increase cost by $ 16,000,000.00
Decrease cost by $ N/A
This Change Order will:
X Not change time
Increase time by ____ days
o ___ days Excusable Delay
o ___ days Compensable Delay
Decrease time by ____ days
The date of completion as of this Change Order is:
Requesting this change for year 2 (current) through year 5 contract.
G/L account number (s): 40029013 / 31650
Basis for change in cost:
Unit price(s)
Lump sum
X Time and Materials
Compensation for Compensable Delay
X Other: Time and Equipment
Contract Change Order – continued
CONTRACTOR CERTIFICATION: By signing below, Contractor agrees that this Change Order constitutes full resolution, settlement, accord and satisfaction with respect to any and all pending or future Claims for cost and extensions of time that were asserted, or that could have been asserted, in connection with the Work covered by this Change Order, as more fully set forth in Article 7 of the Contract General Conditions.
FAILURE TO EXECUTE: If Contractor fails to promptly execute this Change Order after it has been submitted for Co ntractor’s signature, the City may unilaterally approve this Change Order as set forth in Article 7 of the Contract General Conditions. Contractor may dispu te the terms of a unilaterally-approved Change Order, in whole or in part, by submitting a Claim in accordance with the Dispute Resolution Procedures set forth herein within fourteen (14) days after the Change Order is approved by the City. If Contractor fails to submit a Claim withi n that 14-day period, with respect to all or part of the unilaterally-approved Change Order, those portions of the Change Order which have not been disputed by timely submission of a Claim shall be deemed to have the same effect as if the Change Order was fully executed by both parties as set forth above.
Accepted for Contractor: Accepted for City of Palo Alto:
By: Ryan Tufnail By: Jose Ibarra
Title:
President Title:
Utilities Supervisor
Date: Date:
PCO No.
ASI
FO
COR
CO
Description Amount Reason for Change
1 Foreman/ Crew Leader (12 kV rubber glove
certification required) $514,000 Electric Grid Modernization Project 2 Line Person/ Journeyman (12 kV rubber glove
certification required) $892,000 Electric Grid Modernization Project 3 Line Person/Journeyman Apprentice (12 kV rubber
glove certification required) $394,000 Electric Grid Modernization Project 4 Truck Driver/ Ground Person (12 kV rubber glove
certification required) $314,000 Electric Grid Modernization Project Scope of Work
DocuSign Envelope ID: 62DD72C0-4AF6-4490-BEC3-AA490040557D 4/25/2024
4/25/2024
5 Overtime Foreman/ Crew Leader (12 kV rubber
glove certification required) $293,000 Electric Grid Modernization Project 6 Overtime Line Person/ Journeyman (12 kV rubber
glove certification $247,000 Electric Grid Modernization Project 7 Overtime Line Person/ Journeyman Apprentice (12
kV rubber glove certification required) $214,000
Electric Grid Modernization Project
8 Overtime Truck Driver/ Ground Person (12 kV
rubber glove certification required) $162,000
Electric Grid Modernization Project
9 Line Truck Capable of setting and removing poles up to 70’ $192,000
Electric Grid Modernization Project
10 Line Truck Capable of setting and removing poles up to 80’ $90,000
Electric Grid Modernization Project
11 Material Handler/ Bucket Truck capable of
facilitating live line work at 55’ $192,000
Electric Grid Modernization Project
12 Material Handler/ Bucket Truck capable of
facilitating live line work at 70’ $100,000
Electric Grid Modernization Project
13 Cargo Trailer capable of hauling material including poles up to 80’ $20,000
Electric Grid Modernization Project
14 Bucket Truck capable of working on electric
secondary level (35’) $70,000
Electric Grid Modernization Project
15 18k LB Boom Truck (e.g. Small Crane) $70,000
Electric Grid Modernization Project
16 Single Reel Dolly Trailer $20,000
Electric Grid Modernization Project
17 3 Reel Dolly/Trailer or Truck $20,000
Electric Grid Modernization Project
18 40k LB Take up Dolly (e.g. 4k Hogg Davis Cable
Puller) $70,000
Electric Grid Modernization Project
19 Underground Splicing Van $70,000
Electric Grid Modernization Project
20 Traffic Control Services $56,000
Electric Grid Modernization Project
Total for this Change Order $4,000,000
Annual incremental percentage increases in bid prices shall be listed for each additional year of the contract.
YEAR 2 - 1st Optional 12-month extension (Items 001 – 0020) 3.90% YEAR 3 - 2nd Optional 12-month extension (Items 001 – 0020) 3.70% YEAR 4 - 3rd Optional 12-month extension (Items 001 – 0020) 3.50% YEAR 5 - 4th Optional 12-month extension (Items 001 – 0020) 3.30%
DocuSign Envelope ID: 62DD72C0-4AF6-4490-BEC3-AA490040557D
Document Preparation
By: Dave Yuan
Title: Utilities Strategic Business Manager
Date: April 16, 2024
City Approval – Division Head
Signature required on all Change Orders
By :
Title : Tomm Marshall
Assistant Director, Electric Engineering and Operations Date:
City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000.
By:
Title: Dean Batchelor
Director of Utilities
Date:
Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Sum: $ 20,000,000.00
Previous Change Orders $ 0.00
This Change Order $ 16,000,000.00
Revised Contract Sum: $ 36,000,000.00
Compare to:
Original Contract
Authorization: $ 20,000,000.00 Contingency: 0.00
Contract Amendment
Authorizations $ 0.00 Contingency added: 0.00
Contingency Authorizations: $ 0.00 Used to date (0.00) Total Authorized Funding: $ 20,000,000.00 Balance remaining 0.00 Change Orders shall not be initiated for Council-approved contracts if the revised Contract Sum exceeds the total authorized funding amount.
DocuSign Envelope ID: 62DD72C0-4AF6-4490-BEC3-AA490040557D 4/30/2024
4/30/2024