CITY OF MENIFEE
SUBJECT: Agreement Amendment with Southern California Edison for the Holland Road Overcrossing Project
MEETING DATE: October 7, 2026
TO: Mayor and City Council
PREPARED BY: Illadali Quinteros, Management Analyst II
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. 1 to the Utility Agreement with Southern California Edison (SCE) for the Holland Road Overcrossing Project, Capital Improvement Program (CIP) Project No. 13-03, increasing the City’s obligated reimbursement amount by $780,200.44 for a total not-to-exceed reimbursement to SCE of $1,295,564.44.
DISCUSSION
The Holland Road Overcrossing Project CIP Project No. 13-03 (Project) constructed a new eastwest connection over Interstate 215 (I-215) to improve regional connectivity and circulation within the City. As part of the Project, existing SCE facilities were required to be relocated to accommodate construction of the overcrossing and associated roadway improvements.
The City and SCE previously entered into a Utility Agreement establishing the terms and responsibilities for the relocation of SCE facilities associated with the Project. The original agreement established a City reimbursement amount to SCE in the amount of $515,364 for the utility relocation work.
During construction, additional utility relocation work was required that was not included in the original estimate, resulting in SCE's actual costs exceeding the original agreement amount.
Additionally, during construction of the bridge footing near Antelope Road, an underground SCE duct bank was encountered in a location that differed from available utility records and field information. The utility conflict required additional relocation work and impacted the Project's construction schedule, resulting in additional construction-related costs to the City.
City staff, the City's project consultants, and SCE reviewed the additional relocation costs and supporting project documentation. The City and SCE continue to have differing positions City of Menifee Staff Report
CIP 13-03 Southern California Edison Amendment No. 1
October 7, 2026
regarding responsibility for certain construction delay costs associated with the utility conflict.
However, both parties have identified costs that are not in dispute and have agreed to proceed with an amendment to the Utility Agreement for those costs while the remaining disputed costs are addressed separately.
The proposed Amendment No. 1 would increase the City's maximum reimbursement obligation under the Utility Agreement from $515,364 to a not-to-exceed amount of $1,295,564.44. The amended amount includes the $515,364 previously paid by the City and an additional $780,200.44 in undisputed relocation costs as outlined in Table 1 below.
TABLE 1 – SOUTHERN CALIFORNIA EDISON AGREEMENT HISTORY
Agreement
Activity
Approval
Date
Summary of Changes Value
Original Utility
Agreement No. 1 09/02/2020 SCE utility relocation for the Holland Road Overcrossing Project $515,364.00 Amendment No. 1 PENDING Additional undisputed SCE utility relocation costs $780,200.44
TOTAL $1,295,564.44
The proposed Amendment does not resolve or waive the parties' respective positions regarding the disputed construction delay costs and allows for a future adjustment following resolution of the dispute. The Utility Agreement remains based on actual costs incurred by SCE and requires itemized billing and applicable credits in accordance with the terms of the agreement.
Approval of Amendment No. 1 would allow SCE to proceed with final billing for the undisputed utility relocation costs associated with the Project.
Pursuant to Resolution No. 25-1569 and Menifee Municipal Code §3.12.150, amendments or change orders in the aggregate amount greater than 10% of the agreement amount, that exceed a time extension of 120 days, or that exceed the City Manager’s signing authority, shall be approved by the City Council.
STRATEGIC PLAN OBJECTIVE
Connectivity and Mobility
FISCAL IMPACT
Approval of Amendment No. 1 would increase the City's maximum reimbursement obligation under the Utility Agreement from $515,364.00 to $1,295,564.44, an increase of $780,200.44. The City had previously paid $515,364.00 under the original Utility Agreement.
Funding for the additional $780,200.44 in utility relocation costs is available within the Project, utilizing $634,440.65 in Transportation Uniform Mitigation Fee (TUMF) funds and $145,759.79 in Road and Bridge Benefit District (RBBD) funds, as summarized in Table 2 on the following page.
No additional general fund impact is anticipated as a result of this action.
City of Menifee Staff Report
CIP 13-03 Southern California Edison Amendment No. 1
October 7, 2026
TABLE 2 – CAPITAL PROJECTS BUDGET
Funding Project String No. Available
Budget
Anticipated
Cost
TUMF (4320-55-PWD-CIPS-900-02310-690000)
CIP13-03.2310.CON.CAE
$634,440.65 $634,440.65
RBBD (4320-55-PWD-CIPS-900-02415-690000)
CIP13-03.2415.CON.CAE
$182,040.68 $145,759.79
TOTAL $816,481.33 $780,200.44
ATTACHMENTS
1. Project Location Map
2. Amendment No. 1
3. Original Agreement