TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: David Chantarangsu, AICP, Development Services Director
SUBJECT:
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Second Reading and Adoption of an Uncodified Ordinance Adopting Updated Development Impact Fees Associated with the Stephens’ Kangaroo Rat Habitat Conservation Plan
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ABSTRACT
Ordinance No. 639-26 (Attachment 1) establishes updated mitigation fees associated with development occurring within the Stephens’ Kangaroo Rat (SKR) Habitat Conservation Plan (HCP). The new fees increase the standard mitigation fee from $500 to $900 per gross acre to provide continued funding for the implementation of the regional conservation program, including a $250 fee for custom-lot homes and a $500 per gross acre fee for agricultural development. These fees are set by the Riverside County Habitat Conservation Authority (RCHCA), which oversees the SKR Habitat Conservation Plan.
RECOMMENDATION
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Conduct the second reading and adopt Ordinance No. 639-26, entitled: An Ordinance of the City of Murrieta Amending Ordinance No. 165-96 Establishing the Riverside County Stephens' Kangaroo Rat Habitat Conservation Plan Fee Assessment Area and Setting Mitigation Fees.
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PRIOR ACTION/VOTE
At its October 6, 2026, meeting, the City Council conducted the public hearing and first reading of Ordinance No. 639-26 (Vote: 4-1-0).
STRATEGIC ALIGNMENT
This item aligns with the City Council goal to maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency. By establishing new fees that allow the SKR HCP to maintain fiscal sustainability, the City and other agencies within the plan area ensure that other important government priorities, such as economic development and infrastructure enhancements, can continue within an established regional conservation framework that meets required mitigation obligations and helps avoid potential project delays associated with compliance with state and federal endangered species requirements.
DISCUSSION
Adoption of the updated fees continues the City’s participation in the long-term regional conservation program established in 1996, when the City entered into the SKR HCP Implementation Agreement. The regional approach allows the City to address SKR conservation through a coordinated program rather than on a project-by-project basis and provides greater regulatory certainty for private development and public infrastructure projects subject to state and federal endangered species requirements. Updating the fees helps ensure that the regional program remains adequately funded and capable of meeting its long-term conservation and management obligations, reducing the potential for additional project-specific mitigation, regulatory uncertainty, or delays from state and federal permitting requirements that could otherwise affect development within the City. Continued participation, therefore, maintains the benefits of the regional framework the City joined in 1996 while supporting the City’s broader economic development and infrastructure objectives.
The second reading of the ordinance is the final step of the City’s ordinance approval process. The updated fees will become effective on January 1, 2027.
PUBLIC NOTICING
No public notice is required to conduct the second reading. The City fulfilled the public notice requirements for the City Council public hearing held on October 6, 2026.
CEQA AND REGULATORY OVERVIEW
The adoption of the ordinance setting the updated mitigation fees is exempt from the California Environmental Quality Act (CEQA) as a Statutory Exemption pursuant to Section 15273 of the CEQA Guidelines because CEQA does not apply to the modification of fees charged by public agencies when the fees are intended to meet operating expenses. The Nexus Study (Attachment 2) documents the need for updated mitigation fees to meet costs associated with HCP management, including activities such as reserve management and oversight, habitat management/restoration, biological monitoring, administration, staffing, consultants, services, supplies, insurance, and other implementation expenses that are necessary to ensure compliance with state and federal endangered species requirements.
FISCAL IMPACT
There are no fiscal impacts to the City associated with the adoption of the updated mitigation fees.
ATTACHMENTS
ATT 1 - Ordinance No. 639-26
ATT 2 - Nexus Study