CITY OF MENIFEE
SUBJECT: Agreement Amendment with Parsons Transportation Group, Inc. for Traffic Engineering Review
MEETING DATE: October 7, 2026
TO: Mayor and City Council
PREPARED BY: Laura Sportelli, 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. 5 to the Master Agreement with Parsons Transportation Group, Inc., for Traffic Engineering Services, increasing the amount by $150,000, for a total not-to-exceed amount of $795,000.
DISCUSSION
On June 21, 2023, the City Council approved various Master Agreements for professional on-call services with firms previously established on an approved on-call shortlist for Engineering.
Parsons Transportation Group, Inc. (Parsons) is one of the Shortlist firms initially designated to provide on-call traffic engineering reviews for Engineering.
A Master Agreement for on-call traffic engineering services (Agreement) was initially established with Parsons for a three-year contract term from July 1, 2023, through June 30, 2026, and for a total agreement amount not-to-exceed $150,000. Due to the continued and increasing volume of development activities requiring traffic-related plans, traffic impact studies, and traffic signal timing reviews, and given the limited responsiveness of other firms, staff has relied heavily on Parsons for the performance of technical traffic engineering support over the last fiscal year. The need for continued support is compounded by the challenges the City has faced in its efforts to successfully fill the vacant Principal Engineer position in the City’s Traffic Engineering Division.
On June 3, 2026, the City Council approved several Engineering on-call short list agreement amendments, including an extension of the contract term through June 30, 2027, and an increase of $150,000 to the contract amount, which is shown as Amendment No. 4 in Table 1 on the following page.
Traffic engineering services are a critical element of maintaining public safety on roadways while playing a key role in adequately addressing future transportation needs of the City well ahead of City of Menifee Staff Report
PW PSA Amendment No. 5 Parsons
October 7, 2026
planned growth. While there are multiple firms approved as shortlist service providers, Parsons has consistently been very responsive for traffic engineering support needs. The proposed Amendment No. 5 (Amendment) would increase the Parsons Agreement by $150,000, to a total not-to-exceed limit of $795,000 through June 2027. If approved, the Amendment would provide staff the opportunity to maintain continuity on development projects that are already being supported by Parsons’ services and would ensure capacity for assigning additional technical traffic related reviews to the firm in the future. All other terms of the Agreement would remain unchanged, as outlined in Table 1 below.
TABLE 1 – PARSONS MASTER AGREEMENT HISTORY
Agreement Activity Approval
Date Summary of Changes Value
Original PSA 6/21/2023 Original Agreement
July 1, 2023 – June 30, 2026 $150,000
Amendment No. 1 8/21/2024 Additional funding for traffic engineering services $150,000
Amendment No. 2 6/04/2025 Additional funding for traffic engineering services $150,000
Amendment No. 3 4/02/2026 Additional funding for traffic engineering services $45,000
Amendment No. 4 6/03/2026 Contract extension to June 30, 2027 and additional funding $150,000
Amendment No. 5 PENDING Additional funding for traffic
engineering services $150,000
Total $795,000
Pursuant to Menifee Municipal Code §3.12.090, any change orders in the amount greater than 10% of the contract amount or that exceeds $25,000 in value, and any time extension of a performance deadline that exceeds 60 days, shall be approved by the City Council.
STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
FISCAL IMPACT
The fiscal impact of the proposed amendment is not-to-exceed $150,000 through the contract term of fiscal year (FY) 2026/2027, bringing the total agreement to a not-to-exceed amount of $795,000. Funding for a portion of the proposed amendment is available within the Fiscal Year (FY) 2026/2027 budget, under professional services reimbursable for Public Works Traffic Engineering division within the General Fund (1100-PWD-TREN-652825). Funding in FY 2026/2027 would be budgeted accordingly.
It is important to note that traffic engineering review services are recoverable and would be offset by developer fees and deposits collected for the services. Purchase orders for these services would only be issued following confirmation of budget availability and only for amounts within the approved not-to-exceed agreement compensation amounts.
City of Menifee Staff Report
PW PSA Amendment No. 5 Parsons
October 7, 2026
ATTACHMENTS
1. Amendment No. 5
2. Original Agreement