CITY OF MENIFEE
SUBJECT: Agreement Amendment with Southstar Engineering & Consulting, Inc., for Construction Management Services for the Holland Road/I-215 Overcrossing Project
MEETING DATE: April 2, 2025
TO: Mayor and City Council
PREPARED BY: Carlos Geronimo, Engineering Manager
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 Amendment No. 3 to the Professional Services Agreement with Southstar Engineering & Consulting, Inc., increasing their compensation by $699,759.06 for a total agreement amount not-to-exceed $5,328,401.80 and extending the term of services to June 30, 2025, for the Holland Road / I-215 Overcrossing Project, Capital Improvement Program Project No. CIP 13-03.
DISCUSSION
The Holland Road / I-215 Overcrossing, Capital Improvement Program (CIP) Project No. 13-03 (“Project”), constructed a new four-lane bridge over Interstate 215 (I-215) from Haun Road to Hanover Lane providing a connection between the City’s east and west sides. Construction efforts included installation of mechanically stabilized earth retaining walls on the east side, improvements to drainage, irrigation, landscaping, and the installation of traffic signals on Holland Road at Haun Road and Hanover Lane.
On November 3, 2021, the City Council approved a Professional Services Agreement (PSA) with Southstar Engineering and Consulting Inc. (“Southstar”) to provide construction management and inspection services for the Project. Since the approval of the original PSA, two prior amendments have been approved by City Council to increase total compensation and extend the terms.
Southstar’s services are critical to ensure proper technical oversight for delivery of a high-quality Project and to properly carry out the Project through completion of the construction phase and closeout.
The PSA, as previously amended by Amendment No. 1 and Amendment No. 2, was set to terminate on December 31, 2024. However, both parties have continued to operate under the
City of Menifee Staff Report
CIP 13-03 Southstar Amendment 3
April 2, 2025
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terms of the PSA as if it remained in full force and effect. Amendment No. 3 would extend the term through June 30, 2025 and increase Southstar’s PSA by $699,759.06, increasing the total not-to-exceed amount of the agreement to $5,328,401.80. Southstar’s amendment history for the Project is summarized in Table 1 on the following page.
TABLE 1 – SOUTHSTAR AGREEMENT HISTORY
PSA Activity Approval Date Summary of Changes Value
Original Contract November 3, 2021 Construction Management (CM) services $3,248,237.43
Amendment No. 1 November 15, 2023 Additional CM Services due to unforeseen conditions $1,152,405.31
Amendment No. 2 September 4.2024
Additional CM Services due
resolution of disputed time
delays
$228,000.00
Amendment No. 3 Pending Additional CM Services due
to unanticipated delays $699,759.06
TOTAL $5,328,401.80
In October 2024, the bridge was substantially completed and opened to traffic, a few items remained to be completed which included paving of Willowood Lane, construction of the traffic signal at Holland Road/Hannover Lane intersection, Irrigation, and Landscaping. At the time it was anticipated that all work would be completed by January 2025. To complete all the remaining work, the project needs power and water connections, which have been significantly delayed due to approval processes from utility agencies which are outside of the City’s control.
Amendment No. 3 is necessary to continue Construction Management, Inspection, and Quality Assurance services for this project. The project’s completion timeline has been revised to July 2025 due to unanticipated delays to obtain utility connection permits from EMWD and SCE. The City is working diligently with the utility companies to obtain necessary approvals and complete the project.
Pursuant to Menifee Municipal Code §3.12.090, amendments or change orders in the amount greater than 10% of the original agreement amount, or 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 amendment to Southstar’s PSA for construction management services is $699,759.06, for a total not-to-exceed agreement amount of $5,328,401.80. Funding for the proposed increase is available in the current Fiscal Year 2024/2025 Project transportation budget within the General Fund (1100-PWD-CIPS-760000), as summarized in Table 2 on the following page.
City of Menifee Staff Report
CIP 13-03 Southstar Amendment 3
April 2, 2025
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TABLE 2 – EXISTING PROJECT BUDGET
Fund Project Account String Available Budget Amount Requested General
Fund
CIP13-03.1100.CMG.CAE $931,748.77 $699,759.06
Total $931,748.77 $699,759.06
No additional budget appropriation action(s) is required.
ATTACHMENTS
1. Project Location Map
2. Amendment No. 3
3. Original PSA
4. Amendment No. 1
5. Amendment No. 2