CITY OF MENIFEE
SUBJECT: Agreement Amendment with Southstar Engineering & Consulting, Inc. for the Construction Management Services for the Central Park Amphitheater Project
MEETING DATE: May 6, 2026
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
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. 2 to the Professional Services Agreement with Southstar Engineering & Consulting, Inc. for construction management services for the Central Park Amphitheater Capital Improvement Program (CIP) Project No. 19-15, increasing the compensation amount by $50,000 for a total not-to-exceed amount of $1,073,272, and extending the term of the agreement through December 31, 2026; and
1. Adopt two budget amendment resolutions appropriating $50,000 for the transfer out of the Development Impact Fee (DIF) Citywide – Park Improvements Fund 2522 and the transfer in and expenditures within the Capital Projects Fund 4320 to the Project account.
DISCUSSION
The Central Park Amphitheater, CIP No. 19-15 (Project) consists of the construction of an amphitheater with two distinct and architecturally unique structures: the main shade structure and the rear storage and preparation area. Upon completion, this facility would serve as a premier venue for City events, concerts, and art exhibitions, providing a dynamic space for local musical groups, artists, and performers.
On December 6, 2023, the City Council approved a Professional Services Agreement (Agreement) with Southstar Engineering & Consulting, Inc. (Southstar) for construction management, labor compliance, and oversight services for the Project. The original contract was approved with a not-to-exceed amount of $855,091 for an initial term beginning December 6, 2023, and expiring June 30, 2026. One amendment to the Agreement (Amendment No. 1) was previously approved by the City Council on April 2, 2025, to support additional construction
City of Menifee Staff Report
Southstar Engineering & Consulting, Inc. Amendment No. 2 May 6, 2026
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management, inspections, and coordination efforts with the City, design team, and contractor.
Amendment No. 1 was approved in the amount of $168,181.00, increasing the total not-to-exceed Agreement amount to $1,023,272.00.
The Central Park Amphitheater is a one-of-a-kind structure, incorporating custom-fabricated steel components, engineered Glue-laminated beams (large wood beams that create the primary support for the shade structure and storage building top), and a specialized Polytetrafluoroethylene (PTFE) tensile roof system. These elements require meticulous review, precise fabrication, and extensive quality control to ensure structural integrity and compliance with design specifications.
As the project has continued to progress, several factors have contributed to the need for additional construction management and inspection hours, coordination efforts, and schedule adjustments, including increased volume of submittals, extended review timelines, structural delays, supply chain challenges, and extended fabrication lead times. Additional construction management services were required from Southstar beyond what was initially anticipated through Amendment No. 1 and an additional amendment is necessary to maintain construction management services through the completion of the Project. Staff have consistently reviewed all services provided by Southstar throughout the duration of the Project and have negotiated several reductions to costs with Southstar to ensure any additional construction management costs incurred for the Project are fair and reasonable.
To ensure the successful completion of this project, staff is recommending Amendment No. 2 to the original Agreement with Southstar to continue providing required labor compliance and support for construction document management. Proposed Amendment No. 2 would increase the project compensation by $50,000, for a total not-to-exceed amount of $1,073,272. In addition, a six-month term extension through December 31, 2026, is necessary to ensure all Project closeout and labor compliance tasks are finalized following construction completion. Southstar’s amendment history for the Project is summarized in Table 1 below.
TABLE 1 – SOUTHSTAR AGREEMENT HISTORY
Agreement Activity Approval
Date
Summary of Changes Value
Original Contract 12/06/2023 Construction Management and Labor Compliance
$855,091.00
Amendment No. 1 11/15/2023 Additional Construction
Management and Inspection
$168,181.00
Amendment No. 2 PENDING Extended Construction Mgmt
Services and term extension
through 12/31/2026
$50,000.00
TOTAL $1,073,272.00
While the amount of proposed Amendment No. 2 is within the City Manager’s signing authority pursuant to Menifee Municipal Code §3.12.090 and Resolution 25-1569, the six-month extension of the Agreement term exceeds the City Manager’s signatory authority and requires City Council approval.
City of Menifee Staff Report
Southstar Engineering & Consulting, Inc. Amendment No. 2 May 6, 2026
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STRATEGIC PLAN OBJECTIVE
Community Engagement and Social Infrastructure
FISCAL IMPACT
The fiscal impact of proposed Amendment No. 2 is $50,000, for a total Agreement with Southstar for a not-to-exceed amount of $1,073,272. A supplemental budget appropriation is requested from DIF 2522 to support Amendment No. 2, as well as provide budget availability in the event any minor Project tasks or final Project actions require additional support through Project closeout, as summarized in Table 2 below.
TABLE 2 – PROJECT BUDGET
Fund Project String No. Available
Budget
Anticipated
Cost
DIF-Citywide
Park Improv.
(4320-PWD-CIPS-906-02522-652800)
CIP19-15.2522.CON.CAE
$50,000.00 $50,000.00
All previously approved Project budgets have been fully appropriated for construction and various professional and technical services required to support all phases of the Project to date. Additional funding within DIF Fund 2522, specifically restricted for park improvement projects, is available to support the Project needs in a total amount of $50,000 as summarized in Table 3 below.
TABLE 3 – PROPOSED APPROPRIATION BUDGET
Fund Account Number Account Appropriation
of Revenue
Appropriation of
Expenditures
DIF-Citywide Park
Improv. (2522) Transfer Out 904320 $50,000
Capital Projects Transfer In 802522 $50,000
Capital Projects Expenditure – CIP Budget 690050 $50,000 It is important to note that DIF 2522 funds are restricted use funds and may only be used for eligible expenses associated with park and recreation projects. If approved, and upon Project close-out, any remaining DIF 2522 funds would be reprogrammed to support another eligible park capital improvement project.
ATTACHMENTS
1. Project Location Map
2. Amendment No. 2
3. Original Agreement
4. Budget Amendment Resolution – Fund 2522
5. Budget Amendment Resolution – Fund 4320