TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Chris Tracy, Senior Planner, Advanced Planning
SUBJECT:
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Adoption of an Ordinance Amending Ordinance No. 613-25 to Update the City’s Participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program (MCA-2026-00012) 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
recommendation
Conduct a Public Hearing and introduce and conduct the first reading of Ordinance No. 630-26 entitled: An Ordinance of the City Council of the City of Murrieta, California, Amending Ordinance No. 613-25 to Update Participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program;
Adopt Resolution No. 26-4922 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
In September 2024, the WRCOG Executive Committee adopted an updated TUMF Nexus Study (Attachment 1). This study re-evaluated the regional transportation network and construction costs, resulting in a revised fee schedule for new development. Local jurisdictions, including the City of Murrieta, then amended their ordinances to adopt these updated fees.
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
DISCUSSION
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.
Regular re-evaluations of the regional transportation network and updated construction cost analyses have resulted in periodic revisions to the TUMF schedule in recent years. These updates reflect increased inflationary pressures on labor and materials for infrastructure projects. Over time, the TUMF program, administered regionally by WRCOG, has funded a growing portfolio of transportation improvements throughout Riverside County (Attachment 2) that supports traffic mitigation objectives and enhances regional connectivity.
In September 2024, the WRCOG Executive Committee adopted an updated TUMF Nexus Study. This study reevaluated the regional transportation network and construction costs, resulting in a revised fee schedule for new development. Local jurisdictions, including the City of Murrieta via Ordinance No. 613-25, then amended their ordinances to adopt these updated fees.
As approved by the WRCOG Executive Committee towards the end of 2025, a Construction Cost Index (CCI) adjustment to the TUMF fee schedule was determined to be needed and scheduled to take effect on July 1, 2026. To implement this adjustment, each participating jurisdiction must update its local TUMF ordinance (Attachment 3) and complete the adoption process 60 days before the effective date. To stay consistent with the WRCOG’s intended effective date for TUMF fees, the City Council must conduct a public hearing and first reading at its April 7, 2026, meeting, followed by the second reading and adoption of the ordinance enacting the proposed fees on April 21, 2026. This schedule provides a 70-day time period before the TUMF fees become effective.
Locally, TUMF funds have contributed to intersection and corridor improvements along Clinton Keith Road, California Oaks Road, Murrieta Hot Springs Road, and Los Alamos Road within Murrieta. Currently, WRCOG maintains a TUMF reimbursement agreement with the City of Murrieta for the future Keller Road / Interstate 215 Interchange Project. TUMF funding is currently supporting the planning and engineering phases of the project, which will widen the underpass, add auxiliary lanes, and construct new ramps to improve traffic flow and enhance public safety.
One-Time CCI Adjustment
The CCI adjustment will ensure that TUMF revenues maintain purchasing power relative to regional transportation construction costs. The automatic annual adjustment mechanism provides long-term fiscal stability and reduces the need for significant periodic fee increases.
The following table summarizes the proposed CCI increases. In general, it ranges from a 2.45% increase per square foot for Class A / B Offices to a 2.66% per square foot for Service Commercial:
|
Land Use Type |
Unit |
2025-2026 TUMF Fee (Current) |
2026-2027 TUMF Fee (Proposed) Effective July 1, 2026 |
Difference |
Percent Increase |
|
Single-Family Residential (<1800 SF) |
D.U. |
$12,380 |
$12,705 |
+$325 |
+2.63% |
|
Single-Family Residential (1801-2300 SF) |
D.U. |
$13,927 |
$14,292 |
+$365 |
+2.62% |
|
Single-Family Residential (2301-2700 SF) |
D.U. |
$15,476 |
$15,881 |
+$405 |
+2.62% |
|
Single-Family Residential (2700+ SF) |
D.U. |
$19,344 |
$19,851 |
+$507 |
+2.62% |
|
Multi-Family Residential |
D.U. |
$7,816 |
$8,021 |
+$205 |
+2.62% |
|
Retail |
Sq. Ft. |
$7.72 |
$7.92 |
+$0.20 |
+2.59% |
|
Service |
Sq. Ft. |
$4.89 |
$5.02 |
+$0.13 |
+2.66% |
|
Industrial |
Sq. Ft. |
$2.33 |
$2.39 |
+$0.06 |
+2.58% |
|
Class A / B Office |
Sq. Ft. |
$2.45 |
$2.51 |
+$0.06 |
+2.45% |
Automatic Annual CCI Adjustment
In addition to the one-time adjustment, the WRCOG Executive Committee approved new ordinance language authorizing automatic annual CCI adjustments moving forward.
Beginning July 1, 2026, and annually thereafter, the TUMF shall be automatically adjusted to reflect changes in construction costs. The automatic adjustment mechanism will help preserve the purchasing power of TUMF revenues over time, reducing the need for large periodic fee studies or significant one-time increases. The annual adjustment cap provides cost certainty while ensuring revenue stability for regional transportation infrastructure.
The annual adjustment shall be calculated by WRCOG based on a blended Construction Cost Index derived from:
1. The National Association of Realtors - Median Sales Price of Existing Single-Family Homes, and
2. The Engineering News-Record (ENR) Construction Cost Index.
The calculation shall utilize the September values of each index from the prior calendar year.
Adjustment Cap
The percentage adjustment applied to the TUMF shall equal the annual percentage change in the blended index. However, in no event shall the annual adjustment exceed five percent (5%), whether positive or negative. According to WRCOG, implementation of this cap ensures fee stability and predictability for development projects while maintaining alignment with market conditions.
Implementation Timing
The calculated adjustment shall be implemented on July 1 of the year following the index calculation.
Index Substitution Provision
If either referenced index is discontinued or materially altered, WRCOG shall apply a comparable, industry-recognized index that most closely reflects regional transportation construction costs.
Definition Updates
The proposed ordinance also includes minor amendments to clarify the definitions of Single-Family Residential Unit and Multi-Family Residential Unit, specifying that classification is based on physical attachment rather than lot configuration or ownership structure, and confirming that accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), as defined by State law, are exempt from TUMF and excluded from residential land use classification calculations. The following are the updated definitions:
Single-Family Residential Unit means a residential dwelling unit that is physically detached from any other dwelling unit, sharing no common wall, floor, ceiling, roof, or structural foundation with another dwelling unit, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). As outlined in the Ordinance, accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), as defined by State law, are exempt from TUMF and shall not be counted in determining residential land use classification.
Multi-Family Residential Unit means a residential dwelling unit that is physically attached to one or more other dwelling units by a shared wall, floor, ceiling, roof, or structural foundation, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). Multi-family residential units include, but are not limited to, duplexes, townhomes, apartments, and condominiums with attached units. As outlined in the Ordinance, accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), as defined by State law, are exempt from TUMF and shall not be counted in determining residential land use classification.
The proposed Ordinance provides the legal basis for adoption of a revised TUMF fee schedule. The actual TUMF fee schedule will be established by adopting Resolution No. 26-4922 (Attachment 4). As required by State law, the proposed updated fees were 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 that 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 referenced in the attachments below.
ATTACHMENTS
ATT 1 - TUMF 2024 Nexus Study Update
ATT 2 - TUMF Regional Map
ATT 3 - Ordinance No. 630-26
ATT 4 - Resolution No. 26-4922