CONTRACT CHANGE ORDER
CITY OF PALO ALTO
DEPARTMENT: ELECTRIC UTILITIES OPERATIONS
_____________________________ Project
Contract Change Order # 3
Project Title: Fiber-to-the-Premises Project No.: FO-24000 Contract Number: C22183580 Date: 5/12/25
Contractor: MP Nexlevel of California, Inc. Change Order No.: 3
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. $1,650,000 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)
Change order #2 was approved by Council on April 14, 2025 under staff report ID 2502-4186. $4,000,000 was added to perform substructure and trending work for Foothills Rebuild Wildfire Mitigation, Grid Modernization, and Customer Connections. (Staff Report #2502-4186).
Change Order Justification: Staff recommends amending the scope of work under change order #2 to include Fiber-to-the- Premises with no change to the total not-to-exceed amount of $15,347,390 and term of the contract through August 31, 2025.
Under Amendment No. 2, Staff requested an additional $4,000,000 to provide substructure and utility trenching construction services for the Foothills Rebuild Wildfire Mitigation, Grid Modernization, and Customer Connections. Based on recent estimates of pending construction work, Staff has identified about $450,000 that can be reassigned to FTTP from Amendment No. 2 without impacting the other major projects.
Due to geotechnical concerns of shallow groundwater and severe ground shaking during a major earthquake, the engineering consultant recommended a structural slab supported on a drilled pier which extends to about 18 feet and grade beam foundation system extending below the fill and the upper liquefiable layer. The construction quote for the fiber hut site preparation and installation came in approximately $750,000 higher than staff had originally estimated prior to completion of the geotechnical investigation and engineering design of the pad mount. The quote includes site grading and bedrock, conduit and vault installation, fiber hut pad and structural pier supports, and anchoring the fiber hut and generator upon delivery.
Description of Work to be Performed:
Of the rem aining $4.8M on the contract , c ontractor will provide estimated substructure construction work for the following CIP projects:
Foothills Undergrounding (EL-21001) ~ $2.3M
Grid Modernization (EL-24000) ~$0.1M
Customer Connections (EL-89038) ~0.3M
Fiber-to-the-Premises (FO-24000) ~2.1M
Incorporates Field Order Number(s): N/A
Docusign Envelope ID: 4AAA8EA8-2192-465D-A0C9-7370CD6AA9B5
Cost Time
This Change Order will:
No cost change: N/A
Increase cost by $ N/A
Decrease cost by $ N/A
This Change Order will:
Increase time by __0__ 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: 4AAA8EA8-2192-465D-A0C9-7370CD6AA9B5
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
Adding Fiber-to-the-Premises to Change Order #2
Scope of Work
Docusign Envelope ID: 4AAA8EA8-2192-465D-A0C9-7370CD6AA9B5 5/13/2025
President
Document Preparation
By: Dave Yuan
Title: Utilities Strategic Business Manager
Date: May 12, 2025
City Approval – Division Head
Signature required on all Change Orders
By :
Title : Darren Numoto
Interim Assistant Director, Fiber
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 $ 5,500,000.00 Contingency added: 150,000.00 Contingency Authorizations: $ 1,031,581.00 Used to date (0.00) Total Authorized Funding: $ 15,347,390.00 Balance remaining 4,795,577 Change Orders shall not be initiated for Council-approved contracts if the revised Contract Sum exceeds the total authorized funding amount.
Docusign Envelope ID: 4AAA8EA8-2192-465D-A0C9-7370CD6AA9B5