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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Adoption of an Ordinance Amending and Superseding Ordinance No. 541-19 to Update the City’s Participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program (MCA-2025-00010) for Development Projects within the City, and Adoption of a Resolution Amending the Applicable Transportation Uniform Mitigation Fee (TUMF) Schedule, including a Determination that the Activity is Exempt from the California Environmental Quality Act
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RECOMMENDATION
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Conduct a Public Hearing and introduce and approve the first reading of Ordinance No. 613-25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Amending and Superseding Ordinance No. 541-19 to Update Participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program;
Adopt Resolution No. 25-4805 entitled: A Resolution of the City Council of the City of Murrieta, California, Amending the Applicable Transportation Uniform Mitigation Fee (TUMF) Applicable to all Developments in the City of Murrieta; and
Determine that the activity is exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Code of Regulations, Title 14, Division 6, Chapter 3 (CEQA Guidelines).
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PRIOR ACTION/VOTE
See Attachment 3.
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
The City of Murrieta is a Member Jurisdiction of the Western Riverside Council of Governments (WRCOG), a joint powers agency comprised of the County of Riverside and eighteen (18) cities located in Western Riverside County. Acting in concert, in 2002-2003, the WRCOG Member Jurisdictions developed a plan whereby the shortfall in funds needed to expand the capacity of the Regional System of Highways and Arterials due to new development in Western Riverside County could be made up in part by a Transportation Uniform Mitigation Fee (TUMF) on future residential, commercial and industrial development. As a Member Jurisdiction of WRCOG and as a TUMF Participating Jurisdiction, the City participated in the preparation of a “Western Riverside County Transportation Uniform Fee Nexus Study,” (2002 Nexus Study) later adopted by the WRCOG Executive Committee. Based on the 2002 Nexus Study, the City adopted and implemented an ordinance authorizing the City’s participation in a TUMF Program.
Pursuant to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.), WRCOG has prepared a new nexus study (2024 Nexus Study) to update the fees. On September 9, 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and recommended TUMF Participating Jurisdictions update their fees by amending their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction. Attachment 1 includes the proposed Ordinance No. 613-25 updating the City’s participation in the TUMF program and includes a map of the Regional Transportation System as Exhibit A and the 2024 Nexus Study as Exhibit B.
DISCUSSION
The proposed Ordinance provides the legal basis for a revised TUMF fee schedule. The actual TUMF fee schedule will be established through the adoption of Resolution No. 25-4805 (Attachment 2).
In accordance with the Mitigation Fee Act, the proposed Ordinance and 2024 Nexus Study will: (i) identify the purpose of the revised fees; (ii) identify the use to which the revised fees are to be put, including identification of any facilities to be financed; (iii) determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed; (iv) determine how there is a reasonable relationship between the need for the public facilities and the type of development project upon which the fees are imposed; and (v) determine how there is a reasonable relationship between the amount of the fees and the cost of the public facilities or portion or the public facility attributable to the development on which the fees are imposed.
WRCOG commissions new nexus studies periodically in order to establish the basis of proposed TUMF fees. Prior to the current effort, WRCOG nexus studies updating the original 2002 Nexus Study were completed in 2005, 2009, 2011, and 2016. WRCOG identified the following justifications for undertaking the 2024 Nexus Study:
• It is considered the best practice to update fees on a regular basis;
• The underlying growth forecasts have changed since the last update;
• Travel behavior has changed, particularly viewed in light of the COVID-19 pandemic;
• The TUMF improvement project list has changed, with past projects completed and new projects identified; and
• The opportunity to add new projects.
In addition, a 2022 change to State law, known as AB 602, modified the methodology of how impact fees should be calculated for residential units to require calculation on a square footage basis. Prior to AB 602, calculating residential impact fees on a per unit basis was a common approach. The 2024 Nexus Study addresses the requirements of AB 602, in addition to establishing a nexus for adjusted fees.
WRCOG conducted its own public outreach for the 2024 Nexus Study and reported that 13 letters were received that contained 42 separate comments. Commentators included cities, residents, the Southern California Building Industry Association (BIA), Riverside County, and Habitat for Humanity. City staff participated in the evaluation of the study through the various WRCOG work groups staff participates in, such as the Planning Directors Committee and Public Works Committee. Staff notes TUMF fee increases for retail and service projects were not adopted by the WRCOG Executive Committee.
WRCOG data contained in Attachment 4 identifies projects in Murrieta that have been programmed for or received approximately $31 million through the TUMF program for road network improvements.
As required by State law, the consideration of the proposed updated fees was properly noticed for a public hearing.
ENVIRONMENTAL
The adoption of the proposed ordinance and resolution are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the California Code of Regulations, Title 14, Division 6, Chapter 3 (CEQA Guidelines) because the activity makes administrative changes to an existing traffic mitigation fee program, including the adoption of updated fees. No specific traffic improvement project is being proposed or approved. The activity is covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed changes are administrative only and will not have a significant effect on the environment, therefore the activity is not subject to CEQA.
FISCAL IMPACT
There is no fiscal impact associated with this item, as the collection and distribution of TUMF funding continues to be administered by WRCOG.
If approved, the ordinance and resolution will establish the Fee Schedule for TUMF for the City of Murrieta as follows:
1. $12,380 per single-family residential unit 1,800 square feet or less;
2. $13,927 per single-family residential unit between 1,801 and 2,300 square feet;
3. $15,476 per single-family residential unit between 2,301 and 2,700 square feet;
4. $19,344 per single-family residential unit greater than 2,700 square feet;
5. $7,816 per multi-family residential unit;
6. $2.33 per square foot of an industrial project;
7. $7.72 per square foot of a retail commercial project;
8. $4.89 per square foot of a service commercial project; and
9. $2.45 per square foot of a service Class A and B Office.
ATTACHMENTS
1. Proposed Ordinance No. 613-25
2. Resolution No. 25-4805
3. Prior Council Actions
4. TUMF Projects In Murrieta