CONTRACT CHANGE ORDER
CITY OF PALO ALTO
DEPARTMENT: ELECTRIC UTILITIES OPERATIONS
_____________________________ Project
Contract Change Order #
Project Title: Foothills Rebuild Project No.: EL-21001
Contract Number: C22183580 Date: 2/20/25
Contractor: MP Nexlevel of California, Inc. Change Order No.: 2
Description of Change Order
Background Information: The original contract C22183580 was approved by Council on March 21, 2022 under staff report ID 13953. The original term of the contract was an annual not-to-exceed amount of $9,697,390 for a total three-year not-to-exceed amount from June 15, 2022 through April 30, 2025. Staff Report 13953 (laserfiche.com)
Change order #1 was approved by Council on October 7, 2024 under staff report ID 2408-3368. $1.65 million was added to the MP Nexlevel (MPNL) contract to perform substructure work for the new fiber hut and fiber construction for the fiber-to-the-premises (FTTP) pilot. With the FTTP amendment, the revised not-to-exceed amount is $11,347,390. Staff Report 2408-3368
As of Feb 19, 2025, there is approximately $1,400,000 remaining in the contract. Utilities will be issuing a new RFP for substructure work in March 2025. It will take approximately 4-6 months to award the new contract including Council’s approval. A change order is required for MPNL to maintain business continuity and accelerate the Foothills Undergrounding project until a new contract is in place. The average monthly MPNL billing rate is approximately $450,000 for up to three crews. Staff may request for a fourth crew at times depending on the number of projects that are occurring concurrently.
Change Order Justification: The City does not possess the staffing resources to provide substructure, trenching services and fiber installation because the amount of work varies year over year. These services have been contracted out for approximately 30 years and are required to complete CIP and customer connections in a timely and cost-effective manner. The City has been contracting with MP Nexlevel for over the past 10 years for substructure installations, utility trenching, and fiber conduit installations
Staff recommends increasing the task order construction contract by $4,000,000 to accelerate undergrounding of critical areas deemed as high fire threat in the foothills before fire season begins (2024 Wildfire Mitigation Plan). In addition, staff needs additional funding to complete the pilot for electric gird modernization and new customer connection projects (i.e. Hoover School). Staff also recommends extending the duration of the contract by four months from April 2025 to August 2025 until a new contract is in place.
Staff will be issuing a new competitive bid for substructure and trenching construction in March 2025 with anticipation of a new contract award in August 2025 (post-Council break). This change order will bridge the gap between April through August 2025. When the new contract is awarded, all remaining funds in the existing contract will be disencumbered and returned to reserves.
Docusign Envelope ID: 23AB0BDA-C1C4-45E2-9520-72E52BEEAF18 Description of Work to be Performed:
Contractor will provide ongoing and scheduled substructure construction work for the following CIP projects:
Foothills Undergrounding (EL-21001) ~ $3.1M
Grid Modernization (EL-24000) ~$0.6M
Customer Connections (EL-89038) ~0.3M
Incorporates Field Order Number(s): Bid items 1 – 34
Cost Time
This Change Order will:
No cost change: N/A
X Increase cost by $ 4,000,000
Decrease cost by $ N/A
This Change Order will:
X Increase time by __123__ days
o _0_ days Excusable Delay
o _0_ days Compensable Delay
Decrease time by ____ days
The date of completion as of this Change Order is:
August 31, 2025_______________________________
G/L account number (s): 40030200 / 31650
Basis for change in cost:
Unit price(s)
Lump sum
X Time and Materials
Compensation for Compensable Delay
Other:
Docusign Envelope ID: 23AB0BDA-C1C4-45E2-9520-72E52BEEAF18
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: By:
Title: Title:
Date: Date:
PCO No.
ASI
FO
COR
CO
Description Amount Reason for Change
1 Foreman $795,302
Foothills Underground/Grid Mod
2 Laborer
$1,526,280
Foothills Underground/Grid Mod
3 Equipment Operator
$66,989
Foothills Underground/Grid Mod
4 Truck Driver Class A
$44,520
Foothills Underground/Grid Mod
5 Qualified journeyman worker to perform conduit
intercepts in an energized duct bank $10,501 Foothills Underground/Grid Mod
6 Concrete Finisher
$47,461
Foothills Underground/Grid Mod
7 Core Driller with operator
$7,805
Foothills Underground/Grid Mod
8 Concrete Saw with operator
$7,141
Foothills Underground/Grid Mod
9 Foreman’s Truck
$68,880
Foothills Underground/Grid Mod
10 Crew truck, with Hand Tools, and Gas-Powered
Cutoff Saw $103,320
Foothills Underground/Grid Mod
11 Compressor and Jackhammer
$2,115
Foothills Underground/Grid Mod
12 Backhoe
$19,389
Foothills Underground/Grid Mod
13 Ramhoe
$7,939
Foothills Underground/Grid Mod
14 Bobtail Truck
$179,760
Foothills Underground/Grid Mod
15 End-Dump Truck
$242,549
Foothills Underground/Grid Mod
Scope of Work
Docusign Envelope ID: 23AB0BDA-C1C4-45E2-9520-72E52BEEAF18 3/31/2025
Robbi Pribyl
President
16 10-wheel Dump Truck $35,280 Foothills Underground/Grid Mod 17 Boom Truck with Flatbed $3,528 Foothills Underground/Grid Mod 18 Directional Boring Rig $9,869 Foothills Underground/Grid Mod 19 Arrow Board $355 Foothills Underground/Grid Mod
20 Vac Trailer – 800 Gallons $28,224 Foothills Underground/Grid Mod 21 Mini Excavator $61,600 Foothills Underground/Grid Mod 22 Bobcat Skid-Steer $2,829 Foothills Underground/Grid Mod 23 Equipment Trailer $15,960 Foothills Underground/Grid Mod 24 A/C Roller $2,296 Foothills Underground/Grid Mod
25 Estimator $14,981 Foothills Underground/Grid Mod
26 3-5 Yard Dump Truck $3,877 Foothills Underground/Grid Mod 29 Box Shoring $5,733 Foothills Underground/Grid Mod
30 Message Board $3,613 Foothills Underground/Grid Mod 31 Pipe Fusing (100') $14,280 Foothills Underground/Grid Mod 32 Pipe Grouting $111,301 Foothills Underground/Grid Mod 33 2200 Gallon Vacuum Truck $397,419 Foothills Underground/Grid Mod 34 Large Bore Rig $158,901 Foothills Underground/Grid Mod Total for this Change Order $4,000,000
Docusign Envelope ID: 23AB0BDA-C1C4-45E2-9520-72E52BEEAF18
Document Preparation
By: Dave Yuan
Title: Utilities Strategic Business Manager
Date: March 27, 2025
City Approval – Division Head
Signature required on all Change Orders
By :
Title : Jorge Silva
Interim Assistant Director, Electric Engineering and Operations Date:
City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000.
By:
Title: Kiely Nose
Interim Director of Utilities
Date:
Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Sum: $ 9,697,390.00
Previous Change Orders $ 1,650,000.00
This Change Order $ 4,000,000.00
Revised Contract Sum: $ 15,347,390.00
Compare to:
Original Contract
Authorization: $ 8,815,809.00 Contingency: 881,581.00
Contract Amendment
Authorizations $ 1,500,000.00 Contingency added: 150,000.00 Contingency Authorizations: $ 1,031,581.00 Used to date (0.00) Total Authorized Funding: $ 11,347,390.00 Balance remaining 1,408,953.00 Change Orders shall not be initiated for Council-approved contracts if the revised Contract Sum exceeds the total authorized funding amount.
Docusign Envelope ID: 23AB0BDA-C1C4-45E2-9520-72E52BEEAF18