CITY OF MENIFEE
SUBJECT: Contract Change Order with Riverside Construction Company, Inc. for the Holland Road/Interstate 215
Overcrossing Project
MEETING DATE: September 3, 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 Contract Change Order No. 12 with Riverside Construction Company, Inc. for the Holland Road/Interstate 215 Overcrossing Project, Capital Improvement Program (CIP) Project No. 13-03, increasing the contract amount by $716,983.75, for a total contract value amount not-to-exceed $26,752,789.01; and
2. Approve and authorize the City Manager to execute Amendment No. 4 to the Transportation Uniform Mitigation Fee (TUMF) Program Reimbursement Agreement with the Western Regional Council of Governments (WRCOG) increasing the contract amount by $1,500,000, for a total amount not-to-exceed $12,755,000; and
3. Adopt two budget amendment resolutions appropriating $1,500,000 in corresponding revenues within the TUMF Fund 2310 and expenditures within the Capital Projects Fund 4320 to the Project account.
DISCUSSION
The Holland Road/Interstate 215 (I-215) Overcrossing Project, CIP Project No. 13-03 (Project) constructed a four-lane bridge and road over the I-215 freeway from Haun Road to Hanover Lane to connect the City’s east and west sides. The Project improvements included the construction of mechanically stabilized earth (MSE) retaining walls on the east side, drainage, irrigation, and landscaping improvements, and the installation of two traffic signals on Holland Road at Haun Road and Hanover Lane.
On October 19, 2022, the City Council awarded the construction services contract to Riverside Construction Company, Inc. (Contractor) in the amount of $25,848,403.85. Construction work for the Project began in January 2023 and is now substantially completed.
City of Menifee Staff Report
CIP 13-03 CCO No. 12
September 3, 2025
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Although staff makes every effort to carefully study and anticipate the extent of the scope of work required to achieve project goals, unforeseen needs are often encountered as a project progresses. Unknown site conditions, utility conflicts discovered during construction activities, design clarifications, and additional expenses required to comply with contract documents may result in additional work outside of the original scope and contract amount.
Contract Change Order No. 12
Contract Change Order (CCO) No. 12 is the result of multiple out of scope work items not included in the original design drawings that became necessary to complete the Project requirements. The additional work included:
Conversion of potable irrigation system to recycled water system on the west side. Requests from Eastern Municipal Water District (EMWD) for the relocation of an existing 12” water main in conflict with the City’s Project. The cost of this work is expected to be reimbursed by EMWD.
An additional mow curb was installed on the west side to delineate limits of recycled water systems. This is a requirement from EMWD to ensure there is no cross-contamination between potable and recycled water systems.
Miscellaneous time and material work. These items correspond to various adjustments and installations throughout the Project related to various contract items of work not included in the original scope.
Additional paving at the intersection of Holland Road and Hanover Lane. This work was the result of street improvements made by the adjacent Del Oro North developer (Apartments), which resulted in significant changes to grades and elevations that created poor drainage conditions and ponding in the intersection. The additional Contractor work raised the intersection and addressed drainage issues. The cost of this work is expected to be reimbursed by the Apartments’ developers.
Additional equipment mobilization for trench repair. This item of work corresponds to trench paving related to the installation of the irrigation water meter on the east side. Additional installation of conduits and vaults. This work item corresponds to the installation of the traffic signals at Haun Road and Hanover Lane, where Southern California Edison’s (SCE) plans required trenching and improvements not included in the original scope of work.
Revisions to the traffic signal plans. This item of work corresponds to changes and modifications to the traffic signal plans, which did not conform to current conditions, as the plans were developed more than five years ago. The work included installation of additional conduits, re-stripping and signing, advanced loop installation, pedestrian push buttons.
Installation of a fire hydrant at Antelope Road that was not included in the original scope of work.
Time-related overhead. This item of work corresponds to the various revisions and out- of-scope items of work that extended the completion of the work for 143 days, of which 58 days are compensable. Per the contract documents, the Contractor is entitled to receive compensation for additional work that is beyond their control and not as a result of their performance. This item covers the Contractor's administrative expenses during this time.
City of Menifee Staff Report
CIP 13-03 CCO No. 12
September 3, 2025
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Various bid items and material quantities not used in the project that resulted in a credit to the City.
The approval of CCO No. 12 would increase the total not-to-exceed value of the Contractor’s contract to $26,752,789.01. A summary of CCO No. 12 and all previous CCOs are outlined in Table 1.
TABLE 1 – CONTRACT ACTIVITY SUMMARY
Contract
Activity Approval Date Summary of Changes Amount
Original Contract 10/19/2022 Construction services $25,848,403.85 CCO No. 1 4/17/2023 12” C900 DR 14 fusible pipe $20,537.39 CCO No. 2 5/15/2023 Extra work for miscellaneous items $49,000.00 CCO No. 3 5/31/2023 Irrigation modifications plan IP-5 ($9,000.00) CCO No. 4 7/27/2023 Adjustment of girder flare thickness $0.00 CCO No. 5 9/5/2023 Misc. extra work and time & materials $16,824.94 CCO No. 6 9/21/2023 Extra work time & materials related to EMWD utilities. $3,412.35
CCO No. 7 12/13/2023 Extra electrical work for Frontier $17,892.61 CCO No. 8 1/26/2024
Additional bridge work including utility
opening and additional rebar and
exothermic welding
$9,344.96
CCO No. 9 4/25/2024 Dispute Resolution Board required by Caltrans $35,000.00
CCO No. 10 5/14/2024
Time extension and time-related
overhead for SCE delay at Abutment
No. 4
$17,716.48
CCO No. 11 7/22/2024 Replace 22” transmission waterline steel casing with 26” steel casing $26,672.68
CCO No. 12 PENDING
Miscellaneous extra work (see above),
time-related overhead, and quantity
balance
$716,983.75
TOTAL $26,752,789.01
Transportation Uniform Mitigation Fee (TUMF) Program Reimbursement Agreement On March 30, 2020, the WRCOG TUMF Program allocated $6,455,000 toward the Project’s construction phase costs and the City and WRCOG entered into a TUMF Program Reimbursement Agreement (Reimbursement Agreement). The original TUMF Program allocation covered only the construction of the overcrossing structure itself. The City and WRCOG entered into Amendment No. 1 in November 2021, increasing the TUMF allocation to $8,255,000 for construction related to the Project’s roadway improvements from Haun Road to Hanover Lane.
Following a competitive bidding process for the construction contract, the lowest responsive bid received exceeded the Engineer’s estimate and the TUMF allocation was increased through Amendment No. 2 in October 2022 to a total of $10,255,000. On November 15, 2023, the City and WRCOG entered into Amendment No. 3 increasing the TUMF allocation to $11,255,00 to City of Menifee Staff Report
CIP 13-03 CCO No. 12
September 3, 2025
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support unanticipated Project costs during the construction phase associated with unmarked utility discoveries during excavation activities.
As construction activity progressed, the Project costs have exceeded original estimates and bid quantities due to additional time and effort required to perform extensive utility coordination and relocation work. Additional costs included the installation of conduits and vaults related to the traffic signals at Haun Road and Hanover Lane, which required trenching and improvements per SCE’s plans that were not included in the original scope. As a result of the unanticipated costs, City staff requested that WRCOG increase the TUMF allocation by an additional $1,500,000 to further support and closeout the construction phase of the Project. At the request of the City, the WRCOG’s Fiscal Year (FY) 2025/2026 TUMF Central Zone 5-Year Transportation Improvement Program (TIP) was amended to increase the total TUMF contribution towards the Project to $12,755,000. The revised TIP was approved on August 4, 2025, by the WRCOG Executive Committee. The Reimbursement Agreement history, including all prior amendments, are outlined in Table 2.
TABLE 2 – TUMF REIMBURSEMENT AGREEMENT HISTORY
Agreement Activity Approval Date Summary of Changes Value Original Agreement 3/30/2020 Original TUMF allocation to support construction phase costs $6,455,000
Amendment No. 1 11/17/2021 Increase TUMF share to support additional construction costs $1,800,000
Amendment No. 2 10/19/2022 Increase TUMF share to support additional construction costs $2,000,000
Amendment No. 3 1/17/2024 Increase TUMF share to support additional construction costs $1,000,000
Amendment No. 4 Pending Increase TUMF share to support
additional construction costs $1,500,000
TOTAL $12,755,000
The Project budget must be increased in corresponding revenues to support the additional unanticipated construction costs outlined above. City Council action is required for approval of the proposed budget amendment resolutions (BAR) as it will result in an increase to the FY 2025/2026 CIP budget.
CCO No. 12, in the amount of $716,983.75, exceeds the City Manager’s signing authority, bringing the cumulative total of all CCOs to $904,385.16, or 3.50% of the original contract amount.
The proposed Amendment No. 4 to the Reimbursement Agreement also exceeds the City Manager’s signing authority. Pursuant to Resolution No. 24-1569 and Menifee Municipal Code §3.12.150, amendments or change orders in the aggregate amount greater than 10% of the agreement amount, exceeds a time extension of 120 days, or that exceeds the City Manager’s signing authority shall be approved by the City Council.
STRATEGIC PLAN OBJECTIVE
Connectivity and Mobility
City of Menifee Staff Report
CIP 13-03 CCO No. 12
September 3, 2025
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FISCAL IMPACT
The proposed Amendment No. 4 to the TUMF Reimbursement Agreement with WRCOG would increase the Agreement value by $1,500,000, for a total amount not-to-exceed $12,755,000. The proposed increase to the Project budget would support the construction costs included in CCO No. 12 as well as any additional unanticipated costs required to close out the Project. If approved, the corresponding revenues would be appropriated to the Project budget through a Budget Amendment Resolution (BAR) within the TUMF Fund (2310-PWD-CIPS-433550) in the amount of $1,500,000 and expenditures within the Capital Projects Fund for the expenditures (4320-PWD- CIPS-900-02310-690000), as summarized in Table 3.
TABLE 3 – PROPOSED PROJECT BUDGET
Fund Account Number Appropriation
of Revenue
Appropriation of
Expenditures
TUMF 2310-PWD-CIPS-433550 $1,500,000
Capital Projects 4320-PWD-CIPS-900-
02310-690050 $1,500,000
An additional BAR would be needed to issue a transfer of the funds from the TUMF Fund to the Capital Projects Fund and then an appropriation within the Capital Projects Fund for the expenditure (4320-PWD-CIPS-900-02310-690000). Per Resolution No. 25-1593 the Chief Financial Officer and/or designee is hereby authorized to process corresponding transfers (transfer appropriations) of all approved CIP Program expenditure appropriations, including FY2025/26 and 2026/27, and prior years’ carryover appropriations to Capital Projects Fund (Fund 4320) for purposes of consolidating CIP program expenditures under one fund.
The fiscal impact of the proposed CCO No. 12 would increase the Contract value by $716,983.75, for a total amount not-to-exceed $26,752,789.01. If approved, the $1,500,000 appropriated through the proposed BARs would cover CCO No. 12, and any final construction costs required to close out the Project, as summarized in Table 4.
TABLE 4 – PROPOSED PROJECT BUDGET
Fund Project Account String Beginning Budget Proposed
Budget
CCO No. 12
Anticipated
Cost
TUMF CIP 13-03.2310.CON.CAE $0.00 $1,500,000 $716,983.75 TOTAL $0.00 $1,500,000 $716,983.75
City of Menifee Staff Report
CIP 13-03 CCO No. 12
September 3, 2025
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ATTACHMENTS
1. Project Location Map
2. CCO No. 12
3. Contract
4. Amendment No. 4
5. Reimbursement Agreement
6. FY2025/26 TUMF Central Zone 5-Year TIP
7. BAR – Fund 2310
8. BAR – Fund 4320