HomeMy WebLinkAboutItem No. 14 - TUMF Program CCI 2021 UpdateCity Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 21-346
Agenda Date: 9/28/2021 Status: Approval FinalVersion: 1
File Type: Council Public
Hearing
In Control: City Council / Successor Agency
Agenda Number: 14)
Participation in the Transportation Uniform Mitigation Fee (TUMF) Program and Adopting a
TUMF Schedule Due to the CCI 2021 Update
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
AMENDING THE APPLICABLE TRANSPORTATION UNIFORM MITIGATION FEE (TUMF)
APPLICABLE TO ALL DEVELOPMENTS IN THE CITY OF LAKE ELSINORE
Page 1 City of Lake Elsinore Printed on 9/28/2021
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From Jason Simpson, City Manager
Prepared by: Shannon Buckley, Director of Administrative Services
Date: September 28, 2021
Subject: Participation in the Transportation Uniform Mitigation Fee (TUMF) Program;
and adopting a TUMF Schedule due to CCI 2021 Update
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING THE TRANSPORTATION UNIFORM MITIGATION FEE (TUMF)
SCHEDULE
Background
The City is a Member Jurisdiction of the Western Riverside Council of Governments (WRCOG),
a joint powers agency comprised of the County of Riverside and 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 enlarge 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 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 specific “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 prepared a new Nexus
Study (“2016 Nexus Study”) to update the fees. On July 10, 2017, the WRCOG Executive
Committee reviewed the 2016 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. All of the WRCOG jurisdictions updated their ordinances
which then implemented the fees approved by WRCOG’s Executive Committee.
WRCOG is required on an annual basis, per the TUMF Administrative Plan, to evaluate project
costs and calculate a construction cost index (CCI). A CCI reflect increased project costs based
on regional and statewide data. At the July 12, 2021 Executive Committee meeting, staff
TUMF Program
September 28, 2021
Page 2 of 3
presented a TUMF CCI adjustment for consideration. The Executive Committee approved the
item, which is then implemented through the adoption of a new TUMF fee schedule which
increased all categories by 3% effective January 1, 2022.
Discussion
The previously adopted Ordinance provides the legal basis for a revised TUMF schedule. The
actual TUMF schedule is established through the Resolution. The action requested of the City is
the adoption of an updated resolution, which implements the updated TUMF fee schedule with
the implementation of the CCI.
In accordance with the Mitigation Fee Act, the previously adopted Ordinance and 2016 Nexus
Study: (i) identify the purpose of the revised fees; (ii) identify the use to which the revised fees is
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.
The Resolution will update the TUMF Fee Schedule to include the adjusted fees commencing
January 1, 2022.
The TUMF Fee Schedule from July 1, 2020 to December 31st, 2020, was as follows:
(1) $9,478.00 per single family residential unit
(2) $6,389.00 per multi-family residential unit
(3) $1.81 per square foot of an industrial project
(4) $7.50 per square foot of a retail commercial project
(5) $4.75 per square foot of a service commercial project
(6) $2.38 per square foot of a service Class A and B Office
From January 1, 2021 the fee schedule shall be as follows:
(1) $9,810.00 per single family residential unit
(2) $6,389.00 per multi-family residential unit
(3) $1.81 per square foot of an industrial project
(4) $7.50 per square foot of a retail commercial project
(5) $4.75 per square foot of a service commercial project
(6) $2.38 per square foot of a service Class A and B Office
From January 1, 2022 the fee schedule shall be as follows:
(1) $10,104.00 per single family residential unit
(2) $6,580.00 per multi-family residential unit
(3) $1.86 per square foot of an industrial project
(4) $7.72 per square foot of a retail commercial project
(5) $4.89 per square foot of a service commercial project
(6) $2.45 per square foot of a service Class A and B Office
TUMF Program
September 28, 2021
Page 3 of 3
Fiscal Impact
The Proposed Resolution will update the TUMF Schedule for all new development based on the
2016 Nexus Study for the TUMF Ordinance in effect based upon the approval of a Construction
Cost Index (CCI) adjustment. A 3% CCI adjustment for all TUMF land use types was approved
by the WRCOG Executive Committee on July 12, 2021.
Exhibits
A – Resolution Adopting a TUMF Schedule
RESOLUTION NO. 2021-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING THE TRANSPORTATION UNIFORM MITIGATION FEE
(TUMF) SCHEDULE
Whereas, the City of Lake Elsinore (“City”) is a member agency of the Western Riverside
Council of Governments (“WRCOG”), a joint powers agency comprised of the County of
Riverside and eighteen cities located in Western Riverside County; and,
Whereas, the member agencies of WRCOG recognized that there was insufficient funding to
address the impacts of new development on the regional system of highways and arterials in
Western Riverside County (the “Regional System”); and,
Whereas, in order to address this shortfall, the member agencies formulated a plan whereby a
transportation mitigation fee would be assessed on new development and would be used to
fund the necessary improvements for the Regional System; and,
Whereas, WRCOG, with the assistance of TUMF Program participating jurisdictions, has
prepared an updated Nexus Study entitled “Transportation Uniform Mitigation Fee Nexus Study:
2016 Update” (“2016 Nexus Study”) pursuant to California Government Code sections 66000 et
seq. (the Mitigation Fee Act), for the purpose of updating the fees. On July 10, 2017, the
WRCOG Executive Committee reviewed the 2016 Nexus Study and TUMF Program and
recommended TUMF participating jurisdictions amend their applicable TUMF ordinances to
reflect changes in the TUMF network and the cost of construction in order to update the TUMF
Program; and,
Whereas, consistent with its previous findings made in the adoption of Ordinance No. 1096, the
City Council has been informed and advised, and hereby finds, that if the capacity of the
Regional System is not enlarged and unless development contributes to the cost of improving
the Regional System, the result will be substantial traffic congestion in all parts of Western
Riverside County, with unacceptable Levels of Service. Furthermore, the failure to mitigate
growing traffic impacts on the Regional System will substantially impair the ability of public
safety services (police and fire) to respond and, thus, adversely affect the public health, safety
and welfare. Therefore, continuation of a TUMF Program is essential; and,
Whereas, the City Council finds and determines that there is a reasonable and rational
relationship between the use of the TUMF and the type of development projects on which the
fees are imposed because the fees will be used to construct the transportation improvements
that are necessary for the safety, health, and welfare of the residential and non-residential users
of the development in which the TUMF will be levied; and,
Whereas, the City Council finds and determines that there is a reasonable and rational
relationship between the need for the improvements to the Regional System and the type of
development projects on which the TUMF is imposed because it will be necessary for the
residential and non-residential users of such projects to have access to the Regional system.
Such development will benefit from the Regional System improvements and the burden of such
developments will be mitigated in part by payment of the TUMF; and,
Whereas, the City Council finds and determines that the cost estimates set forth in the 2016
Nexus Study are reasonable cost estimates for constructing the Regional System improvements
and the facilities that compromise the Regional System, and that the amount of the TUMF
expected to be generated by new development will not exceed the total fair share cost to such
development; and,
CC Reso. No. 2021-____
Page 2 of 5
Whereas, the fees collected pursuant to the TUMF Ordinance shall be used to help pay for the
design, planning, construction of and real property acquisition for the Regional System
improvements and its facilities as identified in the 2016 Nexus Study and the need for the
improvements and facilities is related to new development because such development results in
additional traffic and creates the demand for the improvements; and,
Whereas, pursuant to the TUMF Administrative Plan, WRCOG evaluates project costs and
calculates a construction cost index (CCI) annually to reflect increased project costs based on
regional and statewide data and, on July 12, 2021, the WRCOG Executive Committee adopted
a TUMF CCI adjustment which is implemented throug h the adoption of a new TUMF fee
schedule; and
Whereas, by notice duly given and published, the City Council set the time and place for a
public hearing on the TUMF CCI adjustment and adjusted TUMF fee schedule proposed
thereunder and at least ten (10) days prior to this hearing, the City Council made the 2016
Nexus Study and proposed adjusted TUMF fee schedule available to the public; and,
Whereas, at the time and place set for the hearing, the City Council duly considered data and
information provided by the public relative to the cost of the improvements and facilities for
which the fees are proposed and all other comments, whether written or oral, submitted prior to
the conclusion of the hearing; and,
Whereas, section 4.C of the TUMF Ordinance authorizes periodic review and adjustment to the
applicable TUMF in accordance with any adjustments made by the WRCOG Executive
Committee; and,
Whereas, the fees collected pursuant to this Resolution shall be used to finance the public
facilities described or identified in the Nexus Study; and,
Whereas, the levying of TUMF has been reviewed by the City Council and staff in accordance
with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines and it has
been determined that the adoption of this ordinance is exempt from CEQA pursuant to Section
15061(b)(3) of the CEQA Guidelines.
NOW, THEREFORE, the City Council of Lake Elsinore does resolve as follows:
Section 1. Findings. The recitals set forth above are hereby adopted as findings in support
of this Resolution. In addition, the City Council re-adopts the findings contained in Section
16.83.020 of the Lake Elsinore Municipal Code in support of the adjusted TUMF contained
herein.
Section 2. TUMF Schedule. In accordance with Section 16.83.040 of the Lake Elsinore
Municipal Code, there is hereby adopted the following fee schedule for the TUMF which
replaces the fee schedule set forth in Section 2 of Resolution No. 2020-048 in its entirety,
provided that the fees shall go into effect upon the Effective Date set forth below:
CC Reso. No. 2021-____
Page 3 of 5
A. There is hereby adopted the following TUMF schedule:
(1) $9,146.00 per single-family residential unit
(2) $6,134.00 per multi-family residential unit
(3) $1.77 per square foot of an industrial project
(4) $7.50 per square foot of a retail commercial project
(5) $4.56 per square foot of a service commercial project
(6) $2.19 per square foot of a service Class A and B Office
B. For single-family residential, multi-family residential, and retail non-residential
projects, the fees set forth in Section 2.A. shall be phased in as follows:
From July 1, 2020, to December 31, 2020, the fee schedule shall be as follows:
(1) $9,478.00 per single family residential unit
(2) $6,389.00 per multi-family residential unit
(3) $1.81 per square foot of an industrial project
(4) $7.50 per square foot of a retail commercial project
(5) $4.75 per square foot of a service commercial project
(6) $2.38 per square foot of a service Class A and B Office
From January 1, 2021 the fee schedule shall be as follows:
(1) $9,810.00 per single family residential unit
(2) $6,389.00 per multi-family residential unit
(3) $1.781 per square foot of an industrial project
(4) $7.50 per square foot of a retail commercial project
(5) $4.75 per square foot of a service commercial project
(6) $2.38 per square foot of a service Class A and B Office
From January 1, 2022 the fee schedule shall be as follows:
(1) $10,104.00 per single family residential unit
(2) $6,580.00 per multi-family residential unit
(3) $1.86 per square foot of an industrial project
(4) $7.72 per square foot of a retail commercial project
(5) $4.89 per square foot of a service commercial project
(6) $2.45 per square foot of a service Class A and B Office
Section 3. CEQA Findings. The City Council hereby finds that in accordance with the
California Environmental Quality Act (“CEQA”) and the CEQA Guidelines the adoption of this
Resolution is exempt from CEQA pursuant to Section 15061(b)(3).
Section 4. Effective Date. This Resolution shall take effect immediately upon its adoption.
Section 5. Book of Resolutions. The City Clerk shall certify to the adoption of this
Resolution and enter it into the book of original Resolutions.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 28th day of September 2021.
CC Reso. No. 2021-____
Page 4 of 5
Robert E. Magee
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
CC Reso. No. 2021-____
Page 5 of 5
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC City Clerk of the City of Lake Elsinore, California, do hereby certify
that Resolution No. 2021-xxx was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of September 28, 2021 and that the same was adopted by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk