Grand Terrace City Council
March 24, 2026

Chapter 4 Fire Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Table 4-5
Summary of Proposed Development Impact Fees
Land Use Per SF
Single-Family Detached $0.831/SF
Multi-Family Attached $1.365/SF
Manufactured/Mobile Homes $1.492/SF
General Commercial $0.388/SF
Office Commercial $0.509/SF
Industrial $0.101/SF
The fees above represent the maximum justi�ied amounts. The City Council retains discretion to adopt fees at or below these levels as a matter of policy.

Current Fire Facilities Development Impact Fees
The City does not currently levy a Fire Facilities development impact fee, and there is no existing Fire Facilities impact fee fund balance. Fire protection services are provided by San Bernardino County Fire Protection District, and any plan review, inspection, or similar charges assessed by the County are service fees, not development impact fees, and are outside the scope of this program.

Adoption of the fees presented in this chapter would therefore establish a new Fire Facilities development impact fee for the City of Grand Terrace. The fee program is limited to growth-related fire protection facilities and capital assets identified in this chapter, including a new fire station, a new fire engine, and associated specialty firefighting and life-safety equipment, and does not fund existing deficiencies or ongoing operations.

Five Findings

1. Purpose of the Fee
The purpose of the Fire Facilities development impact fee is to ensure that new development in the City of Grand Terrace pays its fair and proportionate share of the capital costs required to provide �ire protection facilities and equipment at the City’s established level of service.

The fee is intended to fund growth-related �ire protection capacity necessary to serve new development and to protect existing residents and businesses from subsidizing that growth. 48

Chapter 4 Fire Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report

2. Use of the Fee
Fire Facilities impact fee revenues will be used solely to fund the capital facilities and equipment identi�ied in this chapter that are required to serve growth-related �ire service demand. Eligible uses include planning, environmental review, land acquisition if needed, design, permitting, construction, and equipping of a new �ire station, acquisition of a new �ire engine, and procurement of associated specialty �ire�ighting and life-safety equipment. Fee revenues are restricted to the growth-related share of these projects and may not be used for operations, staf�ing, maintenance, or the replacement of existing assets.

3. Relationship Between the Fee’s Use and the Type of Development New development, including Single Family Detached, Multi-Family Attached, Manufactured/Mobile Homes, and nonresidential uses (General Commercial, Of�ice Commercial, and Industrial), generates additional calls-for-service that increase demand on �ire protection facilities and response resources. Fire Facilities impact fee revenues are used to provide the �ire station, �ire engine, and specialty equipment capacity required to serve that additional demand. Accordingly, there is a reasonable relationship between the use of the fee and the types of development upon which the fee is imposed.

4. Relationship Between the Need for Facilities and the Type of Development The need for additional Fire Facilities is demonstrated through the calls-for-service analysis presented in this chapter. Veri�ied 2024 calls-for-service attributable to existing development establish the current level of service, and applying adopted call-generation rates to projected development yields 1,838 growth-related calls-for-service. This increase in demand exceeds the capacity of the existing �ire protection system and necessitates additional facilities and equipment to maintain the established level of service. The identi�ied �ire station, �ire engine, and specialty equipment are therefore reasonably related to the demand created by each type of new development.

5. Relationship Between the Amount of the Fee and the Cost Attributable to Development The total Fire Facilities capital program cost of $10,826,214 is allocated to development categories in proportion to each category’s share of growth-related calls-for-service. These allocations are converted into development impact fee rates presented on a per-square-foot basis for all residential and nonresidential land uses included in this chapter. This allocation and fee calculation methodology ensures that each development pays only for the portion of Fire Facilities costs attributable to the demand it generates, thereby satisfying the proportionality requirements of the California Mitigation Fee Act.

Implementation and Compliance Notes
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Chapter 4 Fire Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Adoption and Program Structure: The City will adopt the Fire Facilities development impact fee (DIF) by City Council action following adoption of this Nexus Study. The City is the imposing and administering agency and will be responsible for collection, accounting, and reporting of the fee. The Fire Facilities DIF applies only to new development within the City of Grand Terrace and may not be imposed on development outside the City’s jurisdiction, even though fire protection services are provided by San Bernardino County Fire Protection District.

Fire Facilities DIF revenues are restricted to the growth-related fire protection facilities and capital assets identified in this chapter, including a new fire station, a new fire engine, and associated specialty firefighting and life-safety equipment.

If coordination with San Bernardino County Fire Protection District is required for project delivery or procurement, the City may enter into a memorandum of understanding (MOU) that specifies custody of funds, eligible uses, accounting and reporting requirements, audit rights, and reversion or refund provisions consistent with the California Mitigation Fee Act.

Fund Accounting and Reporting: The City will establish a separate Fire Facilities DIF fund. All fee revenues and interest earnings will be deposited into this fund and expended solely for the purposes identified in this chapter. The City will prepare and publish an annual development impact fee report in accordance with Government Code section 66006 and will make the required five-year findings for any unexpended balances pursuant to Government Code section 66001(d). If the required findings cannot be made, remaining balances will be refunded as provided by law.

Administration and Schedule Management: The City will specify when the Fire Facilities DIF is due, such as at building permit issuance or certificate of occupancy, and may provide for periodic indexing of the fee to an appropriate construction cost index. The City will maintain a current, publicly available fee schedule and will make this Nexus Study and the adopted fee schedule available for public review.

Use of Funds (Eligibility): Expenditures of Fire Facilities DIF revenues are limited to the growthrelated share of fire protection facilities and capital assets that add capacity, including planning, environmental review, land acquisition if needed, design, permitting, construction, and equipping of the new fire station, acquisition of the new fire engine, and procurement of associated specialty firefighting and life-safety equipment. Fee revenues may not be used for operations, staffing, routine maintenance, or the replacement of existing facilities or equipment that do not add capacity.

City–County Coordination (if funds are transferred): Any transfer of Fire Facilities DIF revenues to an outside entity for project delivery must occur pursuant to a City-approved MOU that binds the recipient to the restrictions of the Mitigation Fee Act and the eligibility requirements established in this chapter. The MOU must provide for project-level accounting, periodic expenditure reporting, audit and records-access rights for the City, and reversion of funds if revenues are not expended for eligible growth-related purposes.

Program Applicability: The Fire Facilities DIF applies to net new development within the City of Grand Terrace, consistent with the growth assumptions used in this Nexus Study. Fire Facilities DIF revenues may be programmed for eligible projects anywhere within the City where the facilities and 50

Chapter 4 Fire Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report equipment identified in this chapter are required to maintain the City’s established level of fire protection service.

End of Chapter
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Chapter 5
Street Improvements
Purpose and Scope
Purpose: The purpose of this chapter is to establish and implement the City of Grand Terrace’s Street Improvements development impact fee by setting maximum justi�ied fees and administrative provisions consistent with the Mitigation Fee Act (Government Code § 66000 et seq.) and Assembly Bill 602 (AB-602). This update aligns the methodology and presentation with current statutory requirements and ensures the program remains defensible and auditable.

Grand Terrace’s transportation system, including its streets, intersections, signals, and access and egress facilities, serves existing residents and businesses as well as new development. The City’s local street network also functions within a broader regional transportation system. As part of this update, the chapter addresses both local, City-controlled street improvements and the City’s growth-related obligations for regional circulation facilities that support countywide mobility and transit access.

Regional transportation planning and funding in San Bernardino County is coordinated through the San Bernardino County Transportation Authority (SBCTA), which administers countywide transportation programs, including Measure I, and coordinates state and federal transportation funding for regional circulation facilities.

While SBCTA conducts transportation planning at a countywide scale, this chapter applies a cityspeci�ic nexus analysis to quantify the growth-related transportation demand attributable to development within Grand Terrace. This localized analysis re�ines regional planning assumptions by tying demand directly to the City’s land use patterns and development approvals, ensuring that any development impact fee adopted by the City is narrowly tailored, proportionate, and consistent with the requirements of the Mitigation Fee Act.

Without continued investment and planning, additional trip demand generated by growth would erode the performance of the City’s local street system and diminish levels of service (LOS).

Accordingly, the Street Improvements development impact fee is structured to address growthrelated impacts on local, City-controlled street facilities, while recognizing that certain circulation facilities serving regional travel demand are planned and delivered in coordination with SBCTA and other regional partners.

For this update cycle, the Street Improvements program funds circulation planning activities and identi�ies City-controlled street improvement projects, with costs sized and allocated using a consistent, trip-based methodology to ensure proportionality. Regional circulation facilities are evaluated using the same trip-based nexus framework, but are maintained in a separate funding program to ensure transparency and to avoid commingling with the local Street Improvements fee.

This update consolidates the prior Arterial Improvement, Traf�ic Signal Improvement, and Operational Improvement fee components into a single Street Improvements Development Impact Fee applicable to local, City-controlled street facilities. In addition, this chapter establishes the basis 52

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report for a separate Regional Circulation Development Impact Fee framework for facilities planned and funded in coordination with the San Bernardino County Transportation Authority (SBCTA). Each fee program is calculated and administered independently and applies only to its respective category of facilities, ensuring clarity, proportionality, and compliance with the Mitigation Fee Act and Assembly Bill 602.

Scope of Improvements: This section de�ines the scope of improvements addressed in this chapter, including local Street Improvements eligible for funding under the City of Grand Terrace’s local Street Improvements Development Impact Fee and regional circulation facilities addressed through a separate funding framework.

Local Street Improvements
Eligible improvements under the local Street Improvements Development Impact Fee are limited to circulation planning activities and City-controlled capital street facilities necessary to maintain adopted mobility standards and accommodate growth-related travel demand on the City’s local street system.

Eligible planning uses include master plan preparation and updates, traf�ic impact and warrant studies, travel-demand modeling, corridor and complete-streets planning, intersection control evaluations, access management studies, and related engineering needed to de�ine, phase, and document capacity, safety, and operational improvements attributable to growth.

Eligible capital improvements include roadway widenings and extensions, intersection and signal upgrades, access and egress improvements, systemwide safety and operational enhancements, sidewalks and pedestrian lighting when implemented as part of eligible corridor or intersection projects, and bridges or structures where needed to maintain network connectivity and capacity for growth. All capital improvements included in the program are supported by adopted planning documents and technical analyses demonstrating nexus and proportionality, consistent with the Mitigation Fee Act (Government Code § 66000 et seq.) and Assembly Bill 602 (AB-602).

Prior to funding capacity-increasing improvements through the local Street Improvements Development Impact Fee, the City will rely on adopted planning documents and appropriate technical analyses demonstrating nexus and proportionality. Planning and project adoption processes, including General Plan consistency review pursuant to Government Code § 65401, provide the basis for con�irming that improvements are data-driven, appropriately scaled to growth, and eligible for impact fee funding.

The local Street Improvements Development Impact Fee excludes routine operations and maintenance, deferred maintenance, like-for-like replacement of existing facilities, and stand-alone amenities not functionally related to the street network.

Consistent with consolidation of the prior Arterial Improvement, Traf�ic Signal Improvement, and Operational Improvement fee components, revenues from the local Street Improvements Development Impact Fee are deposited into a single Street Improvements fund. 53

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Regional Circulation Facilities
Regional circulation facilities include transportation infrastructure that serves travel demand extending beyond the City’s local street network, such as commuter rail and transit facilities and associated access improvements. These facilities support regional mobility and accommodate growth-related travel demand generated by development within the City but are planned and delivered in coordination with regional agencies, including the San Bernardino County Transportation Authority (SBCTA).

Regional circulation facilities are evaluated using the same trip-based nexus framework applied to local street improvements to quantify the growth-related demand attributable to development within Grand Terrace. However, costs associated with regional circulation facilities are maintained in a separate funding program and are not eligible for funding under the local Street Improvements Development Impact Fee, ensuring transparency and avoiding commingling of funds.

Scope of Bene�iciaries: The local Street Improvements program provides systemwide bene�its to both existing and new development in the City of Grand Terrace. Planning activities and Citycontrolled capital street improvements, including street widenings, intersection and signal upgrades, corridor safety and operational elements, and structures necessary to maintain connectivity, enhance the ef�iciency and safety of the City’s local street network for all users.

Financial responsibility is assigned to growth because new development introduces additional trip demand that creates the need to plan and construct added capacity and operational improvements.

Existing development has already contributed to the City’s current street system through prior public investments and previously collected impact fees. To maintain equity and proportionality under the Mitigation Fee Act and Assembly Bill 602 (AB-602), eligible local Street Improvements costs are allocated to new development in proportion to the trip demand it generates, using the trip-based methodology described in this chapter.

Regional circulation facilities similarly provide bene�its to both existing and new development by accommodating regional travel demand generated by residents, employees, and visitors within the City. For purposes of this chapter, the growth-related share of regional circulation facilities attributable to development in Grand Terrace is identi�ied using the same trip-based nexus framework, while funding for such facilities is maintained in a separate regional circulation program to ensure transparency and avoid commingling with the local Street Improvements fee.

Scope of Nexus: The Mitigation Fee Act (Government Code § 66000 et seq.) requires a reasonable relationship between new development and the need for public facilities funded through development impact fees. For the Street Improvements programs addressed in this chapter, that relationship is established by linking new development to incremental travel demand placed on the transportation system.

New residential and nonresidential development in the City of Grand Terrace generates additional vehicular trips that use both the City’s local street network and, for longer-distance travel, regional circulation facilities. As development occurs, the added trips increase overall system demand and 54

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report contribute to the need for circulation planning and, when programmed, capacity and operational improvements to maintain adopted mobility and safety standards.

This nexus is measured using a trip-based methodology that converts development growth into travel demand expressed in trip-miles. Trip-miles provide a systemwide measure of transportation demand by capturing both the number of trips generated by development and the distance those trips travel on the street system. This approach establishes a direct and measurable relationship between new development and the need for transportation facilities.

For local streets, the nexus supports planning and City-controlled street, intersection, and signal improvements necessary to accommodate growth-related demand. For regional circulation facilities planned and delivered in coordination with the San Bernardino County Transportation Authority (SBCTA), the nexus is limited to the portion of regional travel demand attributable to development within the City of Grand Terrace. In both cases, the nexus is speci�ic to the incremental demand generated by new development and does not address existing de�iciencies or general system needs unrelated to growth.

Existing Facilities
Asset and Infrastructure: The City of Grand Terrace maintains a local street network that provides mobility for residents, businesses, and visitors. The system consists primarily of arterials and collectors, together with signalized intersections and other intersection control devices, corridor lighting, and related safety elements. These facilities constitute the baseline local circulation network that must be maintained as the community grows.

Within the local street network, the current inventory identi�ies 2.66 miles of arterials, 11.36 miles of collectors, and 1.90 miles of other major roadways, for a combined total of 15.92 miles of major local streets. Intersections and traf�ic control are critical components of this system; the inventory includes 5 fully actuated traf�ic signals, 224 simple two-way signals, 2 intersection signal improvements, and 16 arterial/collector intersections. Street operations and safety features, including signing and striping, communications and intelligent transportation systems (ITS), and corridor lighting, support safe and ef�icient operation of the network and are coordinated with corridor and intersection improvements to maintain functionality and level of service.

This inventory is limited to local, City-controlled street assets. Regional circulation facilities, such as commuter rail or transit facilities planned and delivered in coordination with the San Bernardino County Transportation Authority (SBCTA) or other regional agencies, are not included in this inventory because they are not owned or controlled by the City. Regional facilities are addressed separately in this chapter for purposes of identifying the City’s growth-related funding responsibilities.

This section is limited to identi�ication of existing assets and infrastructure. Monetary values and replacement costs for the inventoried facilities are addressed separately in the Existing Financial Commitment section that follows.
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Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Existing Financial Commitment: Grand Terrace’s local street system represents a substantial public investment made over many years by existing residents and businesses. At 2025 replacement costs, the inventoried Street Improvements assets total $325,666,387 and include arterials ($57,945,440), collectors ($133,866,240), other major roadways ($19,901,846), right-of-way ($20,520,061), intersection signal improvements ($800,000), fully actuated traf�ic signals ($5,000,000), simple twoway signals ($67,200,000), arterial/collector intersections ($16,000,000), street signs ($2,087,800), and safety light poles and lighting ($2,345,000).

Separately, the City currently holds a Street Improvements fund balance of $805,390. This fund balance represents prior fee collections and accrued interest available to help �inance growth-related local street improvements. When combined, the City’s total existing Street Improvements resources equal $326,471,777, consisting of $325,666,387 in existing capital assets and $805,390 in existing fund balance. The fund balance is treated as a credit in the fee calculation, reducing the amount to be recovered from new development in this update cycle, but it does not alter the underlying replacement-cost value of the existing local street system reported above.

This section re�lects only the City’s existing �inancial commitment to local, City-controlled street facilities. Regional circulation facilities planned and delivered in coordination with the San Bernardino County Transportation Authority (SBCTA) or other regional agencies are not included in this valuation because they are not owned or controlled by the City and are addressed separately in this chapter.

These �igures illustrate the scale of the community’s existing contribution to the local street network.

The purpose of the Street Improvements Development Impact Fee is not to retroactively charge existing development, but to ensure that new development contributes its fair and proportionate share toward the planning, capacity, and operational improvements needed to preserve adopted mobility and safety standards as growth occurs.

Level of Service: For purposes of the Street Improvements development impact fee programs addressed in this chapter, transportation service is de�ined in terms of trip demand, rather than traditional Highway Capacity Manual (HCM) letter-grade level of service. While HCM level of service is a useful tool for evaluating operational performance at speci�ic locations, such as identifying whether an intersection experiences delay or volume-to-capacity issues, it is not designed to allocate system demand or costs among different land uses.

Accordingly, this study de�ines level of service for fee purposes using a trip-mile metric, which measures systemwide transportation demand by combining the number of vehicular trips generated by development with the average distance those trips travel on the street network. Trip-miles provide a consistent, measurable indicator of how development utilizes transportation facilities and allow impacts to be quanti�ied across residential and nonresidential land uses.

By de�ining service in terms of trip-miles rather than HCM letter grades, the methodology supports proportional allocation of Street Improvements costs based on measurable travel demand. This approach provides a technical basis for assigning cost responsibility in a manner that is consistent with the Mitigation Fee Act and Assembly Bill 602 (AB-602). 56

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report The speci�ic inputs used to calculate trip-miles, including trip-generation rates and average trip lengths, are described in the methodology sections that follow.

Growth and Demand
Growth Inputs: Demand for circulation improvements addressed in this chapter is driven by the scale and pattern of development anticipated over the planning horizon. This chapter relies on the City’s adopted planning assumptions to de�ine the magnitude of new residential and nonresidential development expected during the study period. These growth inputs provide the basis for estimating additional travel activity generated by new development and, in turn, the level of demand that must be accommodated on both the City’s local street system and regional circulation facilities serving development within Grand Terrace.

Residential growth is measured in dwelling units using the adopted land use categories.

Nonresidential growth is measured in �loor area (square feet). These measures are consistent with Assembly Bill 602 (AB-602) requirements for fee presentation and maintain consistency across chapters of this report.

Each growth input is translated into trip generation that produces additional miles of travel on the City’s street network. The relationship between new development, trip generation, and resulting tripmiles forms the foundation for allocating circulation improvement costs proportionately to growth.

Speci�ic trip-generation rates, average trip lengths, and land use adjustments are documented in the methodology section that follows; however, the key principle is that the scale of development growth directly determines the scale of new demand placed on the transportation system.

Method: This chapter establishes transportation demand using a trip-based methodology that combines standard trip-generation rates with regional travel behavior data. This methodology is used to estimate the transportation demand generated by different land uses and development types and to allocate development impact fees in proportion to that demand. The same analytical framework is applied to both local Street Improvements and regional circulation facilities, with costs maintained in separate funding programs. The methodology is designed to ensure proportionality and consistency with the Mitigation Fee Act and Assembly Bill 602 (AB-602).

Trip Generation
Trip generation is estimated using standard rates published by the Institute of Transportation Engineers (ITE), which represent average weekday vehicle trip-making characteristics by land use.

Residential trip-generation rates are expressed on a per-dwelling-unit basis, while nonresidential rates are expressed per 1,000 square feet of building area.

For each adopted land use category, the applicable ITE trip-generation rate is applied to the corresponding growth quantity to estimate gross average daily trip-ends. Trip-ends represent the total number of vehicle trips entering and exiting the local street network as a result of development activity. This calculation establishes the baseline level of travel demand attributable to each land use prior to any subsequent analysis.
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Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Gross trip-ends are used as the initial input to the demand analysis because they provide a consistent and widely accepted measure of how different land uses interact with the transportation system.

Trip-ends are then carried forward into subsequent steps of the methodology described below.

Trip Length
Gross trip-ends are converted to trip-miles by applying average trip-length factors that represent typical travel distances on the City’s local street network. Average trip length re�lects the extent to which trips generated by development utilize City streets and is used to translate trip frequency into systemwide demand.

In the absence of City-speci�ic trip-length survey data, average trip-length factors are derived from regional travel behavior data published by the San Diego Association of Governments (SANDAG).

SANDAG travel surveys and regional models are commonly used in Southern California to characterize travel distances and patterns and provide a reasonable proxy for local conditions for planning-level analysis. These data are applied to estimate average trip lengths for trips occurring on the City’s local street system.

Adjustments for Trip Type
Certain land uses generate trips that interact with the street network in different ways depending on trip origin and purpose. To re�lect these differences, the methodology distinguishes among primary, diverted, and pass-by trips, consistent with standard transportation planning practice.

Primary trips are trips made speci�ically to or from a land use and are fully attributable to that use.

Diverted trips represent vehicles already traveling on the street network that alter their route to access a land use, while pass-by trips are vehicles already passing the site that make a brief stop.

Because diverted and pass-by trips do not represent entirely new travel on the system, they impose a lower incremental burden on the street network than primary trips.

Where applicable, trip-type characteristics are used to appropriately weight trip demand so that the resulting trip-mile estimates re�lect the relative impact of different land uses on the City’s local street system, and do not overstate system demand for uses that primarily capture existing traf�ic.

Trip-Miles as the Demand Metric
Trip-miles serve as the primary metric for measuring transportation demand for both the local Street Improvements and regional circulation programs. Trip-miles re�lect both the number of trips generated by a land use and the distance those trips travel, providing a systemwide measure of how development utilizes transportation facilities.

Trip-miles are calculated by combining gross trip-ends with average trip length and any applicable trip-type weighting factors. This approach translates individual trip-making characteristics into a common unit of demand that can be applied consistently across residential and nonresidential land uses.

Using trip-miles as the demand metric ensures that land uses generating a greater volume of travel and longer travel distances are assigned a proportionately greater share of growth-related 58

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report transportation costs. This metric avoids reliance on location-speci�ic operational measures and instead supports equitable, citywide allocation of costs attributable to growth.

By applying trip-miles as the basis for demand, the methodology links development impact fee calculations directly to measurable use of the transportation system, providing a clear and defensible basis for proportional cost allocation consistent with the Mitigation Fee Act and AB-602.

Translation to Fees
Trip-miles calculated for each land use category are used to determine the proportionate share of Street Improvements costs attributable to new development. Total growth-related program costs are allocated across land uses based on their relative share of total trip-miles, ensuring that each use contributes in proportion to the transportation demand it places on the City’s local street system.

Because nonresidential trip-generation rates are developed on a per-1,000-square-foot basis, analytical calculations are performed internally using thousands of square feet (KSF). For fee presentation and adoption purposes, development quantities are expressed in square feet, and maximum justi�ied fees are presented on a per-square-foot basis, consistent with Assembly Bill 602 (AB-602). Residential fees are likewise presented on a per-square-foot basis.

This approach ensures consistency between the underlying demand calculations and the adopted fee schedule, while maintaining transparency, proportionality, and compliance with the Mitigation Fee Act and AB-602.

Compliance and Detailed Methodology
This methodology allocates costs in proportion to measurable, growth-related demand, consistent with the Mitigation Fee Act. The speci�ic inputs, trip-generation rates, SANDAG trip-length factors, and trip-type adjustments, together with the equations used to compute Trip-Ends and Trip-Miles, are documented in the methodology appendix and model tables.

Scope of Included Demand Metric: This program estimates the transportation demand generated by new development by quantifying vehicular trip-ends and converting those trips into trip-miles representing travel on the City’s transportation system. The demand metric is limited to vehicle travel because the development impact fees addressed in this chapter are intended to fund street and circulation facilities that accommodate vehicular use. Other travel modes, including walking, bicycling, and transit, are not included in the fee calculation because they do not generate the same capital facility demands addressed by these programs.

Demand calculations are organized using the adopted land use categories established earlier in this chapter. The scope de�ined here provides the framework for the demand calculations that follow.

Table 5-1 presents the trip-generation rates, average trip lengths, and resulting trip-miles by land use category, which together form the technical basis for allocating transportation demand proportionately across development types.
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Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Table 5-1
Existing Land Use – Trip Generation and Trip-Miles
Land Use Developed
Acres Units/SF Trip-End and Length Factor
Total Existing
Trip-Miles
Single Family Detached 1,000 3,325 4.095 13,616
Multi-Family Attached 180 1,996 1.638 3,269
Manufactured/Mobile Homes 32 269 1.808 486
General Commercial 153 2,361,605 15.089 35,634
Office Commercial 35 544,282 4.529 2,465
Industrial 238 3,103,650 2.514 7,803
Total 1,636 - - 63,273
Note: For nonresidential categories, trip-generation rates are expressed per 1,000 SF (KSF); quantities are shown as total SF. Final fees are presented per SF.

Resulting Service Demand: Application of the trip-based methodology results in a quanti�ied estimate of growth-related transportation demand, expressed in trip-miles, for each adopted land use category. These trip-mile totals represent the incremental burden placed on the City’s local street system by new development, capturing both trip frequency and travel distance.

The resulting growth-related trip-miles and proportional shares, summarized in Table 5-2, are as follows:
• Single Family Detached: 13,247 trip-miles (21%)
• Multi-Family Attached: 6,226 trip-miles (10%)
• Manufactured/Mobile Homes: 13 trip-miles (0%)
• General Commercial: 38,015 trip-miles (59%)
• Of�ice Commercial: 2,203 trip-miles (3%)
• Industrial: 4,833 trip-miles (7%)
• Total: 64,537 trip-miles (100%)
These results quantify the relative contribution of each land use to overall growth-related transportation demand and provide the technical basis for allocating costs in proportion to each category’s share of total trip-miles. The proportional shares derived here are carried forward into the cost allocation and fee calculation steps for both the local Street Improvements program and the regional circulation program, with costs maintained in separate funding accounts. Consistent with Assembly Bill 602 (AB-602), �inal impact fees are presented on a per-square-foot basis. 60

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Table 5-2
Potential Land Use Total Trip-Miles
Land Use Potential
Acres Units/SF Trip-End and Length Factor
Total Potential
Trip-Miles
Single Family Detached 1,024 3,235 4.095 13,247
Multi-Family Attached 207 3,801 1.638 6,226
Manufactured/Mobile Homes 1 7 1.808 13
General Commercial 165 2,519,401 15.089 38,015
Office Commercial 32 486,499 4.529 2,203
Industrial 147 1,922,303 2.514 4,833
Total 1,576 - - 64,537
Note: For nonresidential categories, trip-generation rates are expressed per 1,000 SF (KSF); quantities are shown as total SF. Final fees are presented per SF.

Capacity Implications: As shown in Table 5-2, projected development in the City of Grand Terrace is estimated to generate 64,537 additional trip-miles attributable to new development. These trip-miles represent the measurable, growth-related increase in travel demand generated within the City, as derived using the methodology summarized in Table 5-1, and re�lect demand on the City’s local street system as well as demand contributing to regional circulation facilities serving Grand Terrace.

As additional trip-miles are introduced into the transportation system, they increase overall system loading and contribute to higher utilization of roadway segments, intersections, and other circulation facilities. Over time, this growth-related demand places increasing pressure on both local and regional components of the circulation network and informs the need for coordinated planning, prioritization, and phasing of improvements to maintain adopted mobility and safety standards.

While operational strategies may address short-term conditions at speci�ic locations, sustained growth in travel demand ultimately requires planning and, where appropriate, targeted capital improvements.

For this update cycle, the local Street Improvements Development Impact Fee funds circulation planning activities and identi�ied local street improvements necessary to respond to the documented 64,537 trip-mile growth burden on the City’s local street system. If the City subsequently programs additional eligible local street capacity or operational improvements, those projects will be sized in proportion to the demand identi�ied in Table 5-2, and program costs will be allocated to land uses based on each category’s share of total trip-miles.

Growth-related demand attributable to regional circulation facilities is evaluated using the same tripbased framework and is addressed through a separate regional circulation funding program, as described later in this chapter. Consistent with Assembly Bill 602 (AB-602), �inal impact fees are presented on a per-square-foot basis.
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Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Allocation by Land Use: The cost of Street Improvements is allocated across land uses in direct proportion to their contribution to the 64,537 growth-related trip-miles identi�ied in Table 5-2. This approach ensures that each category of new development is assigned responsibility only for the share of street system demand it generates.

Residential and nonresidential development contribute to transportation demand through daily travel activity associated with household, employment, customer, visitor, and goods-movement trips.

By quantifying demand using a trip-mile metric, the methodology captures both the frequency and distance of travel, providing a clear and equitable basis for allocating Street Improvements costs across land uses.

Street Improvements program costs funded in this update cycle are allocated using the same tripmile methodology, regardless of whether funds support circulation planning activities or eligible local street improvement projects. This approach provides a consistent and defensible measure of system use across land uses and ensures that fee responsibility remains proportional to growth-related impacts on the City’s local street network, consistent with the Mitigation Fee Act and Assembly Bill 602 (AB-602).

While the principle of proportional allocation is established in this section, the detailed calculation of each land use’s percentage share and the derivation of maximum justi�ied fees are presented later in this chapter under Derivation of Maximum Justi�ied Fees.

Capacity Sizing and Capital Program: The demand generated by new development, as documented in Table 5-2, informs the City’s planning and programming of improvements necessary to preserve the performance of Grand Terrace’s local street system. Adopted planning documents provide the framework for identifying where roadway capacity, intersection performance, and traf�ic control should be evaluated and, where appropriate, improved to accommodate projected growth.

Capacity sizing within the Street Improvements program is based on proportionality. Using the tripmile methodology, each improvement is evaluated to determine the extent to which it mitigates growth-related demand relative to existing conditions. Improvements that are primarily driven by growth-related demand, such as intersection control or signalization improvements warranted by increased traf�ic volumes, assign a greater share of cost to new development. Improvements that address both existing and growth-related conditions assign costs between existing and new development based on the relative contribution of each, ensuring that improvements are appropriately scaled and that cost responsibility remains equitable and defensible.

For this update cycle, the Street Improvements program includes circulation planning activities and identi�ied local street improvement projects. Planning efforts, including preparation of the Circulation Master Plan, establish systemwide priorities, con�irm warrants and corridor needs, and provide a transparent, project-level basis for sizing and allocating future improvements. Where planning activities provide systemwide bene�it, associated costs are allocated between existing and new development in proportion to that bene�it. If additional eligible local street improvement projects are added in future update cycles, those projects will be sized based on the growth-related trip-mile demand documented in Table 5-2, and costs will be allocated to land uses in direct proportion to each category’s share of total trip-miles. 62

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Based on the demand, allocation, and capacity-sizing framework described above, the following section presents the local Street Improvements projects included in this update cycle. Each project is drawn from adopted or in-progress planning documents and re�lects a targeted response to growthrelated travel demand on the City’s local street system. Project descriptions summarize scope, location, and purpose, and establish the basis for allocating costs between existing and new development consistent with the trip-mile methodology.

Local Street Improvements Project
Project ID: ST-001
Project Title: Circulation Master Plan
Description: Preparation of a comprehensive Circulation Master Plan to evaluate existing network conditions, identify growth-related capacity needs, establish citywide mobility standards, and de�ine the future capital improvement framework for Grand Terrace. The plan will integrate trip-generation and trip-mile data, model future system performance, and identify prioritized roadway and intersection projects consistent with the City’s General Plan.

Size/Scope: Citywide planning document covering all arterial and collector corridors, intersection control, and multimodal coordination elements.

Location: Citywide
New Development Share: 50% – $1,250,000 (to be funded through Street Improvements Impact Fees)
Existing Community Share: 50% – $1,250,000 (not eligible for impact fee funding) Total Cost: $2,500,000
Timing: 2026–2036
Project ID: ST-002
Project Title: Main Street Corridor Signalization & Railroad Crossing Improvements Description:

Installation of new traf�ic signals and modernization of existing signal infrastructure along the Main Street corridor, including railroad crossing signal coordination, intersection improvements, pedestrian safety upgrades, right-of-way adjustments, and associated roadway enhancements to improve safety, circulation ef�iciency, and operational performance. 63

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Size/Scope: Signal improvements at multiple intersections and railroad crossing interfaces along the Main Street corridor.

Location: Main Street corridor, City of Grand Terrace
New Development Share: 40.00% – $1,800,000 (to be funded through Street Improvements Impact Fees)
Existing Community Share: 60.00% – $2,700,000 (not eligible for impact fee funding) Total Cost: $4,500,000
Timing: 2028–2032
Project ID: ST-003
Project Title: Commerce Way Extension to Taylor Street
Description: Construction of a new roadway connection extending Commerce Way to Taylor Street to eliminate an existing dead-end condition. Improvements include roadway construction, utilities, drainage, curb and sidewalk, street lighting, signage, and required right-of-way acquisition to improve circulation connectivity and access to developable land.

Size/Scope: Approximately 2,020 meters (1.25 miles) of new roadway construction.

Location: Commerce Way to Taylor Street, City of Grand Terrace New Development Share: 70.00% – $2,240,000 (to be funded through Street Improvements Impact Fees)
Existing Community Share: 30.00% – $960,000 (not eligible for impact fee funding) Total Cost: $3,200,000
Timing: 2027–2032
Project ID: ST-004
Project Title: Mt. Vernon Street Slope Stabilization & Roadway Improvements Description: Slope stabilization along Mt. Vernon Street combined with roadway rehabilitation and safety improvements. Work includes retaining structures, erosion control, drainage improvements, pavement rehabilitation, guardrails, and roadway enhancements necessary to maintain safe and reliable circulation along this corridor.

Size/Scope: Approximately 0.5 miles (2,640 linear feet) of slope stabilization and roadway improvements.

Location: Mt. Vernon Street, northern City boundary adjacent to the City of Colton 64

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report New Development Share: 30.00% – $1,260,000 (to be funded through Street Improvements Impact Fees)
Existing Community Share: 70.00% – $2,940,000 (not eligible for impact fee funding) Total Cost: $4,200,000
Timing: 2027–2031
Project ID: ST-005
Project Title: Michigan Street Widening & Arterial Upgrade Description: Widening and reconstruction of Michigan Street to secondary arterial standards.

Improvements include additional travel lanes, curb, gutter, sidewalks, drainage, pavement rehabilitation, signage, and lighting to increase capacity, improve safety, and enhance connectivity within the City’s circulation system.

Size/Scope: Widening and reconstruction of approximately 1,500 meters (4,920 linear feet) of Michigan Street to secondary arterial standards.

Location: Michigan Street corridor, City of Grand Terrace New Development Share: 45.00% – $5,737,500
Existing Community Share: 55.00% – $7,012,500
Total Cost: $12,750,000
Timing: 2027–2032
Regional Circulation Facilities
The capacity sizing and allocation framework described above applies to improvements funded through the City’s local Street Improvements Development Impact Fee. However, the City’s street system also functions as part of a broader regional transportation network, and certain circulation facilities serving regional travel demand are planned, programmed, and funded through regional agencies rather than through the City’s local fee program.

The following section describes regional circulation projects that affect travel within and through Grand Terrace and are coordinated with regional transportation planning efforts. These projects are identi�ied to provide context and transparency regarding regional mobility investments and their relationship to local travel demand, but they are addressed through a separate regional circulation funding framework and are not included in the local Street Improvements development impact fee calculation.
65

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Project ID: RS-001
Project Title: Main Street Metrolink Station and Rail Connection Description: Development of a new Metrolink commuter rail station and Main Street transit connection. The project includes construction of a rail platform and station facilities, passenger amenities, ticketing and shelter structures, ADA access, parking and drop-off areas, pedestrian and bicycle connections to Main Street, utility upgrades, and coordination with rail operators. The project also includes planning and design work necessary to extend existing Metrolink service into the City and allow service to connect with the regional rail network.

Size/Scope: Construction of one new commuter rail station, including station facilities, platform improvements, access improvements, parking, and pedestrian and bicycle connections.

Location: Former power plant site on Taylor Street, fronting the existing rail corridor, City of Grand Terrace.

New Development Share: 50.00% – $19,000,000
Existing Community/Regional Share: 50.00% – $19,000,000 Total Cost: $38,000,000
Timing: 2028–2035
Allocation of Project Costs
This section documents the allocation of local Street Improvements program costs between existing development and new development based on City direction. Allocation percentages re�lect the City’s determination of the extent to which Street Improvements items address existing conditions versus growth-related demand.

Only the portion of costs allocated to new development is eligible for recovery through the Street Improvements Development Impact Fee. Costs allocated to the existing community are excluded from the fee calculation and are funded through non-fee sources.

The growth-eligible portion of Street Improvements costs identi�ied through this allocation is carried forward into the fee calculation and distributed across the City’s adopted land use categories based on their relative contribution to growth-related travel demand. Demand-based allocation of the newdevelopment share is performed using the trip-mile methodology described earlier in this chapter and summarized in Table 5-2.

Allocation between existing and new development for regional circulation facilities is determined separately, consistent with City direction, and is applied within a distinct regional circulation funding program. Although the same trip-based demand framework is used to quantify growth-related demand, regional circulation costs are not included in the local Street Improvements Development Impact Fee.

This approach ensures that new development pays only its proportionate share of Street Improvements costs, consistent with the Mitigation Fee Act and Assembly Bill 602 (AB-602). 66

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Derivation of Maximum Justi�ied Fees
The total cost allocated to new development under the local Street Improvements program provides the basis for calculating maximum justi�ied fees. For this update cycle, the growth-eligible cost equals $12,287,500.00, representing the portion of local Street Improvements project costs allocated to new development based on City direction, as summarized in the Circulation project list.

The City will apply an existing Street Improvements fund balance of $805,390.00 as a credit toward this growth-eligible share. Accordingly, the net cost to be recovered from new development through the local Street Improvements Development Impact Fee update is $11,482,110.00. This net recovery amount is distributed across land use categories in direct proportion to each category’s share of growth-related transportation demand, measured in trip-miles, as established earlier in this chapter.

Allocating the net fee-recovery amount based on each land use’s percentage of total trip-miles maintains proportionality and equity and is consistent with the Mitigation Fee Act (Government Code § 66000 et seq.) and Assembly Bill 602 (AB-602). Resulting fees are presented on a per-square-foot basis for all land uses, consistent with this report’s adopted presentation standards.

Table 5-3 allocates the program’s $11,482,110.00 net fee-recovery amount to land uses in proportion to their respective shares of total growth-related trip-miles shown in Table 5-2. The subsection that follows documents the existing community’s funding commitment for the remaining share of local Street Improvements costs.

Using the same trip-based demand framework described above, the growth-related share of regional circulation facilities attributable to development in the City of Grand Terrace is also allocated across land uses in proportion to their respective shares of total trip-miles. Regional circulation facilities serve travel demand generated by development within the City but are planned and delivered in coordination with regional agencies and are therefore maintained in a separate Regional Circulation Development Impact Fee program.

Table 5-4 summarizes the allocation of regional circulation facility costs to new development using the same proportional trip-mile methodology applied to local Street Improvements, while maintaining a distinct funding bucket to ensure transparency and avoid commingling of funds. Costs shown in Table 5-4 are not included in the local Street Improvements Development Impact Fee and are recovered through the separate Regional Circulation Development Impact Fee. [This space left blank to fit the following table on one page.] 67

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Table 5-3
Local Street Improvements: Allocation of Development Cost per Land Use Land Use Units/SF
Percentage of
Additional
Trip-Miles
Allocation of
Expansion
Costs
Development
Impact Fee Per
SF
Single Family Detached 3,235 21% $2,356,899 $0.378/SF
Multi-Family Attached 3,801 10% $1,107,706 $0.359/SF
Manufactured/Mobile
Homes 7 0% $2,252 $0.285/SF
General Commercial 2,519,401 59% $6,763,442 $2.685/SF
Office Commercial 486,499 3% $391,947 $0.806/SF
Industrial 1,922,303 7% $859,864 $0.447/SF
Total 100% $11,482,110 -
Table 5-4 summarizes the allocation of regional circulation facility costs to new development using the same proportional trip-mile methodology applied to local Street Improvements, while maintaining a distinct funding bucket to ensure transparency and avoid commingling of funds. Costs shown in Table 5-4 are not included in the local Street Improvements Development Impact Fee and are recovered through the separate Regional Circulation Development Impact Fee. [This space left blank to fit the following table on one page.] 68

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Table 5-4
Regional Circulation Improvements: Allocation of Development Cost per Land Use Land Use Units/SF
Percentage of
Additional
Trip-Miles
Allocation of
Expansion
Costs
Development
Impact Fee Per
SF
Single Family Detached 3,235 21% $2,257,938 $0.362/SF
Multi-Family Attached 3,801 10% $1,061,196 $0.344/SF
Manufactured/Mobile
Homes 7 0% $2,157 $0.273/SF
General Commercial 2,519,401 59% $6,479,459 $2.572/SF
Office Commercial 486,499 3% $375,490 $0.772/SF
Industrial 1,922,303 7% $823,760 $0.429/SF
Total 100% $11,000,000 -
Together, Tables 5-3 and 5-4 demonstrate how growth-related transportation demand generated by new development in Grand Terrace is translated into proportionate fee obligations under two separate but analytically consistent programs, ensuring compliance with the Mitigation Fee Act and AB-602.

Existing Community Financial Commitment Comparison
The Mitigation Fee Act requires that new development pay no more than its fair share of the cost of public facilities needed to serve growth. To demonstrate compliance, this chapter documents the �inancial commitment already made by the existing community and contrasts it with the costs allocated to new development under the local Street Improvements program.

City records indicate that Grand Terrace’s total existing Street Improvements resources equal $326,471,777, consisting of $325,666,387 in existing capital street assets (at 2025 replacement cost) and $805,390 in existing Street Improvements fund balance. These �igures re�lect the existing community’s substantial contribution to establishing and maintaining the baseline capacity of the City’s local street network.

By comparison, this update identi�ies $12,287,500.00 in growth-eligible local Street Improvements project costs allocated to new development based on City direction. The City applies the existing $805,390.00 Street Improvements fund balance as a credit toward this growth-eligible share, 69

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report resulting in $11,482,110.00 in net growth-related costs to be recovered through the local Street Improvements Development Impact Fee.

Table 5-3 allocates this $11,482,110.00 net fee-recovery amount across Grand Terrace’s adopted land use categories in proportion to each category’s share of total growth-related trip-miles, as summarized in Table 5-2. The resulting maximum justi�ied fees are presented on a per-square-foot basis, consistent with Assembly Bill 602 (AB-602).

This comparison con�irms that new development is assigned only its fair and proportionate share of local Street Improvements costs relative to the substantial investments already made by the existing community, and that fee levels do not exceed the cost of facilities reasonably attributable to projected growth, in compliance with the Mitigation Fee Act.

Table 5-5
Allocation of Existing Community Financial Commitment
Land Use Units/SF
Percentage
of Existing
Trip-Miles
Allocation of
Existing Costs
Existing
Financial
Commitment
Per SF
Single Family Detached 3,325 22% $70,254,923 $12.15/SF
Multi-Family Attached 1,996 5% $16,867,167 $10.48/SF
Manufactured/Mobile Homes 269 1% $2,507,630 $7.82/SF
General Commercial 2,361,605 56% $183,861,921 $77.85/SF Office Commercial 544,282 4% $12,718,741 $23.37/SF
Industrial 3,103,650 12% $40,261,395 $12.97/SF
Total 100% $326,471,777 -
Fee Schedule and Summary
The maximum justi�ied local Street Improvements Development Impact Fees are derived from the $12,287,500.00 growth-eligible share of local Street Improvements project costs allocated to new development based on City direction. The City applies an existing Street Improvements fund balance of $805,390.00 as a credit toward this growth-eligible share, resulting in $11,482,110.00 in net growth-related costs to be recovered from new development through the local Street Improvements Development Impact Fee.
70

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report The net fee-recovery amount is allocated to land uses in direct proportion to each category’s share of total growth-related transportation demand, measured in trip-miles, as summarized in Table 5-2 and allocated in Table 5-3. The resulting fee levels represent the proportionate cost responsibility of new development to fund local street planning and improvements necessary to accommodate projected growth while maintaining the City’s adopted mobility standards.

Consistent with this chapter’s methodology and presentation standards under Assembly Bill 602 (AB-602), fees are presented on a per-square-foot basis for all land uses, including Single Family Detached, Multi-Family Attached, Manufactured/Mobile Homes, General Commercial, Of�ice Commercial, and Industrial. This fee schedule provides a transparent distribution of costs across land uses and directly links fee obligations to measurable, growth-related demand.

Table 5-6 presents the maximum justi�ied local Street Improvements Development Impact Fees by land use. The City may adopt any fee amount at or below the maximum justi�ied levels and may implement annual indexing and related administrative provisions consistent with the Mitigation Fee Act and AB-602.

Regional circulation facilities are addressed through a separate Regional Circulation Development Impact Fee, summarized in Table 5-7, and are not included in the local Street Improvements fee schedule presented in this section.

Table 5-6
Summary of Proposed Local Streets Development Impact Fees Land Use Per SF
Single Family Detached $0.378/SF
Multi-Family Attached $0.359/SF
Manufactured/Mobile Homes $0.285/SF
General Commercial $2.685/SF
Office Commercial $0.806/SF
Industrial $0.447/SF
[This space left blank to fit the following table on one page.] 71

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Table 5-7
Summary of Proposed Regional Circulation Development Impact Fees Land Use Per SF
Single Family Detached $0.362/SF
Multi-Family Attached $0.344/SF
Manufactured/Mobile Homes $0.273/SF
General Commercial $2.572/SF
Office Commercial $0.772/SF
Industrial $0.429/SF
Current Street Improvements Fee
The City of Grand Terrace’s current fee schedule includes two transportation impact fee components—Traf�ic Signal Improvement and Arterial Improvement—which together function as the City’s local street-system charge on new development. Municipal Code Chapter 4.104 also establishes an Operational Improvement component. Under the existing schedule, residential fees are expressed on a per-dwelling-unit basis, re�lecting legacy fee practices in effect prior to Assembly Bill 602 (AB-602).

In the City’s audited �inancial statements, revenues from these street-related impact fees are accounted for in a single Street Improvement special revenue fund, with expenditures transferred to the capital projects fund as projects are delivered. As of the most recent reporting period, the Street Improvement fund balance totals $805,390, which is credited in this update toward growth-related Street Improvements costs.

Consistent with Chapter 2 of this report and the requirements of AB-602, this study recalculates maximum justi�ied Street Improvements Development Impact Fees and presents them on a persquare-foot basis for all residential and nonresidential land uses. This update consolidates the analytical basis of the prior Traf�ic Signal, Arterial, and Operational Improvement components into a single local Street Improvements Development Impact Fee framework for this cycle.

Any policy action to formally consolidate legacy schedule line items into a single adopted fee, and to continue depositing all local street impact fee receipts into a single Street Improvement fund, is addressed in the chapter’s Implementation and Compliance Notes section. Regional circulation facilities are addressed separately in this chapter and are not part of the current Street Improvements fee schedule.
72

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Five Findings: Local Street Improvements

1. Purpose of the Fee
The purpose of the local Street Improvements Development Impact Fee is to fund circulation planning and growth-related local street improvements necessary to mitigate the impacts of new development on the City of Grand Terrace’s local street system. The fee ensures that growth contributes its fair and proportionate share toward maintaining adopted mobility and safety standards, consistent with the Mitigation Fee Act (Government Code § 66000 et seq.) and Assembly Bill 602 (AB-602).

2. Use of the Fee
Fee revenues are used to fund the local Street Improvements program identi�ied in this nexus study, including eligible planning/engineering and design and construction of City-controlled street, intersection, and signal improvements necessary to accommodate growth-related travel demand. In this update cycle, the fee funds multiple local street improvement projects included in the City’s adopted program for Street Improvements, together with the planning and technical work needed to support and deliver those improvements. Fee revenues may not be used for routine operations, routine maintenance, deferred maintenance, or like-for-like replacement of existing facilities.

3. Relationship Between the Fee’s Use and the Type of Development All new development generates additional vehicular trips that use the City’s local street system. The uses of the fee—planning, engineering, and delivery of growth-related local street and intersection improvements—directly respond to the transportation demand created by new development. Accordingly, there is a reasonable relationship between the use of the fee and the impacts of the development on which the fee is imposed.

4. Relationship Between the Need for Facilities and the Type of Development The need for local Street Improvements arises from the incremental travel demand generated by new development. Without targeted planning and local street, intersection, and signal improvements, the local transportation system would experience declining performance and safety as growth occurs. Each category of new development contributes to this incremental demand, establishing a reasonable relationship between the type of development and the need for the facilities funded by the fee.

5. Relationship Between the Amount of the Fee and the Cost Attributable to Development Local Street Improvements program costs are allocated between new development and the existing community based on City direction and a proportional methodology grounded in measured trip-mile demand. For this update cycle, the growth-eligible share of local Street Improvements project costs totals $12,287,500.00. The City applies $805,390.00 in existing Street Improvements fund balance as a credit toward this growth-eligible share, resulting in 73

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report $11,482,110.00 in net growth-related costs to be recovered through the local Street Improvements Development Impact Fee.

The net fee-recovery amount is distributed across land uses in proportion to each category’s share of total growth-related trip-miles, and maximum justified fees are presented on a persquare-foot basis, consistent with AB-602. The amount of the fee imposed on each land use does not exceed the cost of facilities reasonably attributable to that development category.

Five Findings: Regional Circulation

1. Purpose of the Fee
The purpose of the Regional Circulation Development Impact Fee is to fund the City of Grand Terrace’s growth-related share of regional circulation facilities that serve development within the City and are planned and delivered in coordination with the San Bernardino County Transportation Authority (SBCTA). The fee ensures that new development contributes its fair and proportionate share toward regional transportation improvements necessary to accommodate growth-related travel demand, consistent with the Mitigation Fee Act (Government Code § 66000 et seq.) and Assembly Bill 602 (AB-602).

2. Use of the Fee
Fee revenues are used to fund the City’s growth-related share of eligible regional circulation facilities identi�ied through SBCTA planning and programming efforts, including planning, engineering, design, and construction of transportation improvements that serve regional travel demand generated by development within Grand Terrace. Fee revenues may not be used for routine operations, routine maintenance, deferred maintenance, or like-for-like replacement of existing facilities.

3. Relationship Between the Fee’s Use and the Type of Development New development approved by the City of Grand Terrace generates additional vehicular trips that extend beyond the local street network and contribute to demand on regional circulation facilities planned and funded through SBCTA. The use of the fee directly addresses the transportation impacts created by development within the City by contributing to regional facilities that serve that demand. Accordingly, a reasonable relationship exists between the use of the fee and the type of development on which the fee is imposed.

4. Relationship Between the Need for Facilities and the Type of Development The need for regional circulation facilities arises from incremental travel demand generated by new development within the City of Grand Terrace. Without regional transportation improvements coordinated through SBCTA, congestion and capacity deficiencies would increase on facilities serving regional travel associated with growth. Each category of 74

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report development contributes to this demand, establishing a reasonable relationship between the type of development and the need for the regional facilities funded by the fee.

5. Relationship Between the Amount of the Fee and the Cost Attributable to Development Regional circulation facility costs are allocated to new development using the same tripbased, proportional methodology applied to local Street Improvements, based on measured trip-mile demand generated by development within the City of Grand Terrace. Only the City’s growth-related share of regional circulation facility costs identified through SBCTA planning and programming is included in the Regional Circulation Development Impact Fee.

The resulting fee is allocated across land uses in proportion to each category’s share of total growth-related trip-miles and is presented on a per-square-foot basis, consistent with AB602. The amount of the fee imposed on each land use does not exceed the cost of regional circulation facilities reasonably attributable to that development category.

Implementation and Compliance Notes
Adoption and Program Structure: The City of Grand Terrace shall adopt two separate development impact fee programs pursuant to the Mitigation Fee Act (Government Code § 66000 et seq.) and Assembly Bill 602 (AB-602): a Local Street Improvements Development Impact Fee applicable to Citycontrolled street facilities, and a Regional Circulation Development Impact Fee applicable to regional circulation facilities that serve development within the City and are planned and delivered in coordination with the San Bernardino County Transportation Authority (SBCTA). Upon adoption of the local fee, the City will discontinue the separate Arterial Improvement, Traf�ic Signal Improvement, and Operational Improvement components on the fee schedule and replace them with a single Local Street Improvements Development Impact Fee, consistent with the City’s existing accounting practice under which all local street-related impact fee receipts are deposited into the Street Improvement Fund. The Regional Circulation Development Impact Fee shall be adopted as a distinct fee program, maintained in a separate account, and administered independently from the Local Street Improvements Development Impact Fee to ensure transparency and avoid commingling of funds.

Fund Accounting and Reporting: Revenues from the Local Street Improvements Development Impact Fee shall be deposited into the Street Improvement Fund, with interest earnings retained in the fund. Revenues from the Regional Circulation Development Impact Fee shall be deposited into a separate regional circulation fund established for that purpose. The City will maintain project-level tracking of revenues, expenditures, and interest for each fee program and will report annually in compliance with Government Code § 66006.

Eligible Uses: Local Street Improvements Development Impact Fee revenues may be used for eligible planning, engineering, design, and construction activities necessary to mitigate growth-related impacts on the City’s local street system, consistent with the nexus established in this chapter. Eligible uses include, but are not limited to, local street, intersection, and signal capacity and operational improvements identi�ied through adopted planning documents. Fee revenues may not be used for 75

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report routine operations, routine maintenance, deferred maintenance, or like-for-like replacement of existing facilities.

Regional Circulation Development Impact Fee revenues may be used solely to fund the City’s growthrelated share of eligible regional circulation facilities identi�ied through SBCTA planning and programming processes. Eligible uses include planning, engineering, design, and construction of regional transportation facilities that accommodate growth-related travel demand attributable to development within the City. Regional fee revenues may not be used for routine operations, routine maintenance, deferred maintenance, or like-for-like replacement of existing facilities.

Timing of Collection: Both the Local Street Improvements Development Impact Fee and the Regional Circulation Development Impact Fee shall be collected at the time of building permit issuance, unless otherwise provided by City ordinance or an approved development agreement.

Indexing: Each fee schedule may be indexed annually using a construction cost index approved by the City Council to maintain purchasing power, consistent with the Mitigation Fee Act. Indexing shall be applied independently to each fee program.

Credits and Reimbursements: Developers who construct eligible, growth-related local street improvements or dedicate right-of-way consistent with the Local Street Improvements program may receive credits against local Street Improvements fees otherwise due. Developers who construct eligible, growth-related regional circulation facilities consistent with SBCTA-identi�ied projects and City requirements may receive credits against Regional Circulation fees otherwise due. Where eligible improvements exceed the applicable fee obligation, the City may enter into a reimbursement agreement, subject to City Council approval and applicable program requirements. Credits and reimbursements shall be applied only within the applicable fee program and shall not be transferable between programs.

AB-1600 Reporting: The City will comply with annual reporting requirements for both fee programs, including reporting of collections, interest, expenditures, and fund balances. For any unexpended funds held �ive years or more, the City Council will make the �indings required by Government Code § 66001(d). This chapter provides the technical basis to support those �indings for both the Local Street Improvements and Regional Circulation Development Impact Fees.

Program Applicability: Both fee programs apply citywide to development approved by the City of Grand Terrace. Local Street Improvements fee revenues may be expended on eligible local facilities, and Regional Circulation fee revenues may be expended on eligible regional facilities, each consistent with the respective nexus established in this chapter and in a manner that maintains consistency with the City’s General Plan and Circulation/Mobility Element.

Transition Clari�ication: No interfund transfer or consolidation is required for local street impact fee receipts because legacy Arterial Improvement, Traf�ic Signal Improvement, and Operational Improvement fees are already accounted for within the existing Street Improvement Fund. The City’s next annual Development Impact Fee Report will note that the legacy local fee schedule line items have been administratively replaced by the uni�ied Local Street Improvements Development Impact 76

Chapter 5 Street Improvements
City of Grand Terrace 2026–27 Development Impact Fee Calculation and Nexus Report Fee. Adoption of the Regional Circulation Development Impact Fee establishes a new, separate fee program and fund.

References
Institute of Transportation Engineers. (2021). Trip Generation Manual - 11th Edition. Washington DC: Institute of Transportation Engineers.

San Diego Association of Governments. (2002). Not So Brief Guide of Vehicular Traffic Generation Rates for the San Diego Region. San Diego: California Department of Transportation.

End of Chapter
77

Chapter 6
General City Facilities
Purpose and Scope
Purpose: The purpose of the General City Facilities Fee Program is to ensure that new development in the City of Grand Terrace contributes its fair share toward the cost of providing civic and administrative facilities required to serve growth. The City’s general city facilities, including City Hall and other City-owned administrative and support buildings, house essential functions that serve residents, businesses, and visitors citywide. As Grand Terrace grows, these facilities must be expanded, recon�igured, or replaced to maintain the City’s capacity to deliver public services at existing levels. The fee program provides a legally defensible mechanism under the Mitigation Fee Act (Gov. Code §66000 et seq.) and Assembly Bill 602 (AB-602) to allocate the growth share of these capital costs to new development.

Scope of Improvements: The General City Facilities Development Impact Fee (DIF) will fund the cost of providing civic and administrative capital facilities necessary to maintain established service levels as Grand Terrace grows. Eligible improvements are limited to capacity-adding capital projects and include four categories: (1) City Hall expansion to add or recon�igure administrative of�ice and publicservice space attributable to growth; (2) expansion of the City’s pooled administrative and support vehicle inventory to serve additional service population and workload generated by new development; (3) City Yard expansion to increase operations, storage, and support capacity required to accommodate growth; and (4) capital equipment and furnishings necessary to out�it expanded facilities so they can operate at the established level of service. The scope is strictly limited to capital facilities, vehicles, and equipment that add capacity attributable to new development; operational expenses, staf�ing, vehicle replacement, equipment replacement, and routine maintenance are excluded.

Scope of Bene�iciaries: The bene�iciaries of the General City Facilities Impact Fee include all development within the City of Grand Terrace, encompassing both residential and nonresidential uses. General City facilities provide citywide administrative, legislative, and support services that are essential to the community. Residents rely on City Hall and related administrative facilities to access services such as planning, permitting, code enforcement, �inancial administration, and governance through the City Council. Employees and businesses likewise depend on these facilities for critical administrative services, including land use approvals, business licensing, and regulatory oversight.

Visitors bene�it indirectly, as these facilities enable the City to administer the public services that support a safe and functional civic environment, although the responsibility for funding facility expansions is assigned to development located within the City.

Both existing and future residents and businesses are bene�iciaries of the program. Existing development is currently served by the City’s inventory of general city facilities, while future development will generate additional demand as the community continues to grow. The purpose of the impact fee is to ensure that new development funds only its fair share of the costs required to 78

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report accommodate this additional demand. This structure prevents existing residents and businesses from being required to subsidize growth and helps preserve the current level of service provided by the City. In this way, the fee program treats existing and future development equitably and complies with the proportionality requirements of the Mitigation Fee Act and Assembly Bill 602 (AB-602).

Scope of the Nexus: The nexus for the General City Facilities Impact Fee is established through the relationship between growth in the City’s service population and the demand for civic and administrative facilities. Service population is a standard measure in development impact fee studies that combines both residents and employment into a single metric, re�lecting the fact that City Hall, general city vehicle �leets, City Yard operations, and shared administrative equipment support not only the people who live in Grand Terrace but also those who work in the City each day. As new development occurs, both residents and employees contribute to the overall demand for these facilities and the support systems they rely on.

The fee program �irst determines the growth-related share of General City Facilities costs by applying the service population growth share to the City’s existing facilities inventory. The resulting growthsized costs are then allocated between existing development and new development based on their respective shares of existing and potential land uses within the City. Existing residents and businesses are already served by the City’s current inventory of civic and administrative facilities, while new residents and businesses generated by development will create additional demand in the future.

This chapter describes the methodology used to determine the appropriate share of costs to be assigned to new development, with detailed calculations provided in the following sections.

Existing System
Assets and Infrastructure: The City of Grand Terrace maintains a system of General City facilities and assets that provide the administrative, legislative, and operational backbone for public service delivery. Together, these facilities and resources house the City’s executive of�ices, administrative departments, public works operations, and shared support functions that serve residents and businesses citywide.
• City Hall – Serves as the primary administrative center, housing executive management, �inance, planning, permitting, and other core administrative functions, as well as public counters and meeting spaces used by the community. For planning purposes in this study, City Hall is treated as providing approximately 16,700 square feet of general city administrative space, consistent with the City’s 2005–2006 development impact fee nexus study for general city facilities.
• General City Vehicles – Consist of a pooled general city �leet used by administrative and support staff to perform inspections, �ield visits, interdepartmental travel, and other citywide service activities that support Grand Terrace’s general government functions. The current general city �leet includes 9 vehicles (pickup trucks, sedans, a hybrid, and a van), with a total replacement cost of $334,500 based on the City’s General City Assets Worksheet for vehicles. 79

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report • City Yard Facilities – Provide operations, storage, and staging space for public works and general government support activities, including storage of materials, equipment, and vehicles needed to maintain City infrastructure and support �ield operations. • General City Equipment – Includes shared furniture, �ixtures, technology, and other equipment necessary for City Hall and City Yard functions to operate effectively and to support internal services such as �inance, human resources, information technology, and records management.

These facilities and assets together comprise the City’s General City Facilities system and form the physical base of service that supports both existing and future development.

Existing Financial Commitment: The City’s current General City Facilities system represents a substantial �inancial investment that has been borne by existing residents and businesses. Based on the City’s asset records and planning-level replacement cost estimates in 2025 dollars, the replacement value of existing General City Facilities is as follows:
• City Hall: $9,250,490
• General City Vehicles: $334,500
• City Yard Facilities: $1,503,900
• General City Equipment: $462,525
Total existing facilities replacement value: $11,551,415 These �igures represent the existing community’s �inancial commitment to City Hall, the general city �leet, City Yard facilities, and shared equipment that support general city services citywide. Under the Mitigation Fee Act (Government Code §§66000–66025), new development is not required to buy into this existing investment, but must fund its proportional share of the additional facilities, vehicles, yard capacity, and equipment needed to accommodate growth. Calculations are performed at full precision in the model; values are displayed to whole dollars for publication.

In addition to these physical assets, the City maintains a restricted General City Facilities development impact fee fund with an available balance of $194,105. This balance re�lects prior contributions from new development and will be applied as an offset to the new-development share of the General City Facilities capital program in the fee calculation, ensuring that new development is not overcharged for needs that have already been partially funded.

Level of Service: The level of service for General City Facilities is expressed in terms of the civic and administrative facilities available to the community relative to the City’s service population. Service population combines residents and employment into a single measure of the people who rely on the City’s administrative system for day-to-day services, regulatory functions, and governance.

The General City Facilities system, consisting of City Hall, the general city vehicle �leet, City Yard facilities, and shared general city equipment, provides the administrative capacity necessary to serve this service population. City Hall contributes approximately 16,700 square feet of administrative space, and, together with the City Yard, vehicles, and equipment, represents an existing facilities 80

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report replacement value of $11,551,415 in 2025 dollars. These facilities and assets de�ine the current level of service that the City provides to its residents and businesses.

As Grand Terrace grows, the service population is projected to increase, creating additional demand on City Hall, the general city �leet, City Yard operations, and associated equipment. The General City Facilities Impact Fee is structured so that new development funds its fair share of the additional facilities, vehicles, yard capacity, and equipment needed to maintain the City’s established relationship between General City Facilities and service population. This approach aligns with the requirements of the Mitigation Fee Act and Assembly Bill 602 (AB-602), ensuring that facility expansion keeps pace with growth without shifting the cost of serving new development onto existing residents and businesses.

Growth and Demand
Growth Inputs: Growth in the demand for General City Facilities is measured using service population, which combines residents and jobs into a single metric. This re�lects the fact that civic and administrative functions serve both people who live in Grand Terrace and those who work in the City.

Existing residents total 13,069, and the corrected growth in residents at buildout is 18,931, resulting in buildout residents of 32,000. Existing employment is 3,453 jobs, and buildout employment is estimated at approximately 6,285 jobs based on the ratio of buildout to existing nonresidential �loor area.

For General City Facilities, each job is weighted as one-half of a resident, so service population is calculated as residents plus 0.5 times jobs. On this basis, the existing service population is 14,796, and the buildout service population is 35,143, resulting in an increase of 20,347 service population units at buildout.

The resulting service population growth share — the ratio of growth (20,347) to buildout service population (35,143) — is 57.90% (0.579). This growth share is used to size the General City Facilities capital program so that only the portion of costs attributable to growth is carried forward into the allocation of project costs and fee calculation.

Method: The General City Facilities impact fee is calculated using the City’s service population framework and a three-step process.

First, the capital program is sized to growth. Service population is de�ined as residents plus 0.5 times jobs, re�lecting that General City Facilities support both households and employment. Using existing and buildout residents and jobs, the City’s existing service population is 14,796, and the buildout service population is 35,143, resulting in projected growth of 20,347 service population units. This represents a service population growth share of 57.90%. Each General City Facilities project—City Hall Expansion, General City Vehicle Expansion, City Yard Expansion, and General City Equipment Expansion—is multiplied by this 57.90% growth share to establish its growth-sized cost. The remaining share of each project is attributed to existing development and is expected to be funded 81

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report from non-impact fee sources. Before allocating costs to land uses, the available General City Facilities development impact fee fund balance of $194,105 is applied as an offset to the growth-sized capital program so that new development is not charged for needs that have already been partially funded.

Second, the growth-sized costs are allocated between new and existing development. Consistent with the City’s land use distribution for this program, 49.06% of the growth-sized costs are assigned to new development and 50.94% are assigned to existing development. Only the portion allocated to new development is used to calculate the fee.

Finally, the portion of costs assigned to new development is translated into fee levels by land use.

Growth-related costs are distributed across residential and nonresidential land use categories in proportion to each category’s share of service population at buildout. For residential uses, the resulting burden is �irst expressed on a per dwelling unit basis using persons-per-household factors, then converted into a per square foot fee by applying average dwelling unit sizes in accordance with Assembly Bill 602 (AB-602). For nonresidential development, the service population-based allocation is converted into a cost per square foot of new �loor area using employment density factors.

All calculations are performed at full precision in the underlying model; values are rounded only when presenting the fee schedule for adoption, ensuring that the General City Facilities fee is technically sound, equitable, and compliant with state law.

Capital Programs
The City has identi�ied a set of General City Facilities projects that provide the administrative and civic capacity needed to serve the community. These include expansion of City Hall, expansion of the general city vehicle �leet, expansion of City Yard facilities, and expansion of shared general city equipment. Each of these elements represents a major capital investment and will require additional capacity in order to maintain the current level of service as Grand Terrace grows.

The purpose of the capital program is not to introduce new services or higher standards, but to ensure that the City has suf�icient administrative and operational capacity to serve a larger community at the same level of service that is available today. The projects included in the program are drawn from the City’s General City Facilities planning data and expressed in 2025 dollars. Together, they establish the �inancial basis for allocating a fair share of costs to new development based on growth in service population.

The General City Facilities capital program is de�ined as follows:
• City Hall Expansion – additional administrative space to support executive management, �inance, planning, permitting, and other core general city functions. • General City Vehicle Expansion – additions to the general city �leet required to support inspections, �ield visits, interdepartmental travel, and other citywide service activities. • City Yard Expansion – additional yard, storage, and operations space needed to support public works and general government activities.
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Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report • General City Equipment Expansion – furnishings, �ixtures, technology, and related equipment required to place expanded City Hall and City Yard capacity into service.

Together, these projects represent the capital program for General City Facilities. The cost of providing this program is sized to growth using the service population method described earlier and then allocated to new development based on its share of potential land uses within the City. The growth-related share assigned to new development is subsequently distributed across land use categories in proportion to each category’s share of service population at buildout.

The following section outlines the individual capital projects that comprise the City’s General City Facilities program. Each project corresponds to one of the City’s major administrative or operational needs and is presented with a project identi�ier, title, description, and key details. These descriptions are intentionally high-level to provide �lexibility in implementation, focusing on the function of the improvement rather than prescriptive design features. All project costs are stated in 2025 dollars, with timing assumed to fall within the 2026–2036 planning horizon.

General City Facilities Projects
Project ID: GG-001
Project Title: City Hall Expansion/Modernization
Project Description: Remodel and expand City Hall to increase administrative capacity and ensure the building can accommodate a larger service population. Improvements may include recon�iguring of�ice and meeting space, upgrading technology systems to support digital permitting and �inancial operations, enhancing public counters to serve more customers, and modernizing core building systems such as HVAC, communications, and energy ef�iciency. The project is intended to maintain the City’s established level of General City Facilities service as Grand Terrace grows, rather than to introduce a higher standard.

Size: To be determined based on �inal space planning and design.

Location: City Hall
Total Cost: $5,356,034
New Development Share (49.06%): $2,627,876
Existing Development Share (50.94%): $2,728,158
Timing: 2026–2036
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Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Project ID: GG-002
Project Title: General City Vehicle Expansion
Project Description: This project expands the City’s general-purpose administrative and support vehicle �leet to maintain the established level of service as Grand Terrace’s service population grows.

General City vehicles support a wide range of activities, including inspections, interdepartmental travel, site visits, community response, internal logistics, and citywide operational support. Growth in residential and nonresidential development increases the workload for administrative and �ield personnel, requiring additional vehicles to sustain current service levels. The project provides for the acquisition of new vehicles sized to the City’s projected service population growth.

Size: TBD
Location: Citywide
Total Cost: $193,676
New Development Share (49.06%): $95,025
Existing Development Share (50.94%): $98,651
Timing: 2026–2036
Project ID: GG-003
Project Title: City Yard Expansion
Project Description: This project expands City Yard facilities to maintain operational and storage capacity as Grand Terrace’s service population grows. The City Yard supports public works and general government activities, including materials storage, equipment and vehicle staging, and �ield operations support. As development adds residents and employment, demand increases for inspections, maintenance, and other �ield services, which in turn requires additional yard space to sustain the established level of service. Improvements may include expanded covered and uncovered yard areas, additional storage, circulation and access improvements, and related site work.

Size: Additional yard and storage area sized to service population growth (to be determined at design).

Location: City Yard Facilities
Total Cost: $870,758
New Development Share (49.06%): $427,227
Existing Development Share (50.94%): $443,531
Timing: 2026–2036
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Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Project ID: GG-004
Project Title: General City Equipment Expansion
Project Description: This project provides additional general city equipment to support expanded administrative and operational capacity as the community grows. General City equipment includes shared furnishings, �ixtures, information technology, communications hardware, and other of�ice and operational equipment necessary to place expanded City Hall and City Yard capacity into service. As new development increases the City’s service population, additional workstations, meeting spaces, technology, and related equipment are needed to maintain the City’s current level of administrative and operational service.

Size: Additional equipment and furnishings sized to service population growth (to be determined at implementation).

Location: City Hall, City Yard, and other general city administrative and operational locations.

Total Cost: $267,802
New Development Share (49.06%): $131,394
Existing Development Share (50.94%): $136,408
Timing: 2026–2036
Capital Program Summary: Together, the projects described above represent the City’s General City Facilities capital program. These improvements provide for the proportional expansion and modernization of the City Hall facility, the general city vehicle �leet, the City Yard, and the shared general city equipment necessary to accommodate a larger service population. The program is designed to maintain—not enhance—the City’s existing level of administrative and operational service as Grand Terrace grows.

Each project is sized to growth using the City’s service population methodology, ensuring that only the growth-related share of costs is carried forward. That growth-related share is then allocated between existing and new development based on their respective shares of existing and potential land uses, so new development funds only its proportional share while the existing community remains responsible for the balance.

Allocation of Project Costs
The cost of the General City Facilities capital program is allocated between existing and new development based on the City’s adopted land use distribution. As described in the Method section, the overall size of the program is �irst determined by applying the service population growth share to the City’s existing General City Facilities inventory. Using the service population totals, the growth 85

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report share is 57.90% (0.579). Each project is multiplied by this growth share to establish its growth-sized cost.

The resulting growth-sized costs are then allocated between new and existing development using the land use split for this program. Consistent with Grand Terrace’s existing and potential land use distribution, 49.06% of growth-sized costs are assigned to new development and 50.94% are assigned to existing development. This approach recognizes that while the program is sized for growth using the service population, the fair-share division of that growth-related cost re�lects the proportional shares of existing and potential land uses in the City.

Applying these proportions to the estimated cost of each project yields the following allocations (2025 dollars, rounded to whole dollars for presentation):
• City Hall Expansion/Modernization has a total growth-sized cost of $5,356,034, of which $2,627,876 is allocated to new development and $2,728,158 to existing development. • General City Vehicle Expansion has a total growth-sized cost of $193,676, with $95,025 allocated to new development and $98,651 to existing development. • City Yard Expansion has a total growth-sized cost of $870,758, with $427,227 allocated to new development and $443,531 to existing development.
• General City Equipment Expansion has a total growth-sized cost of $267,802, with $131,394 allocated to new development and $136,408 to existing development.

In total, the growth-sized General City Facilities capital program amounts to $6,688,269 in 2025 dollars. Of this amount, $3,281,522 is attributable to new development, while $3,406,747 is assigned to the existing community. Before fees are calculated, the existing General City Facilities development impact fee fund balance of $194,105 is applied as an offset to the new-development share of the program. Accordingly, the net cost to be recovered from new development through this fee update is $3,087,417.

This allocation ensures that new development contributes only its proportionate share of the cost of expanding General City Facilities, consistent with the Mitigation Fee Act and Assembly Bill 602 (AB602), while existing residents and businesses continue to support the costs associated with their current use of these facilities.

Derivation of Maximum Justi�ied Fees
The maximum justi�ied General City Facilities fees are derived by starting with the growth-related share of the capital program and then translating that cost into fee levels by land use. As described in the Allocation of Project Costs section, each General City Facilities project—City Hall Expansion, General City Vehicle Expansion, City Yard Expansion, and General City Equipment Expansion—is �irst sized to growth using the service population method and then split between new and existing development using the adopted land use distribution (49.06% to new development and 50.94% to existing development). Summing across the four projects produces the total General City Facilities 86

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report capital program attributable to new development. Before calculating fees, the existing General City Facilities development impact fee fund balance of $194,105 is applied as an offset to this total, reducing the amount that must be recovered from future development. The resulting net newdevelopment cost, expressed in 2025 dollars, represents the total capital burden that the fee program is designed to recover from new growth.

Once the net new-development cost is established, it is allocated across land use categories in proportion to each category’s share of the City’s service population at buildout. Service population, de�ined as residents plus 0.5 times jobs, captures the way General City Facilities serve both households and employment. Residential land uses receive a share of the net new-development cost based on their contribution to total service population, and nonresidential land uses receive a corresponding share based on the service population associated with employment in those categories. This ensures that each land use is responsible for only the portion of the capital program that is reasonably related to the administrative and civic demand it creates.

For residential development, each land use category’s allocated cost is then converted into a fee by dividing the allocated cost by the projected net increase in dwelling units and subsequently converting the result into a per–square foot fee using the City’s adopted average dwelling sizes, consistent with Assembly Bill 602 (AB-602), which requires residential development impact fees to be stated on a per–square foot basis. For nonresidential development, each category’s allocated cost is divided by the projected net increase in nonresidential �loor area to produce a fee stated in dollars per square foot of new building space. All calculations are performed using full-precision values in the model, with rounding applied only when presenting the fee schedule for adoption. In this way, the General City Facilities fees are derived directly from the growth-related capital costs, allocated in proportion to service population, and expressed in fee units that are consistent with state law and the City’s land use data, without introducing intermediate fee-per-service-population metrics that are not used in the actual calculations.
[This space left blank to fit the following table on one page.] 87

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Table 6-1
Allocation of Development Cost Per Land Use
Land Use
Service
Population
Allocation
Factor
Maximum Justified
Fee
Single Family Detached 1,023.56 $0.321/SF
Multi-Family Attached 207.40 $0.132/SF
Manufactured/Mobile Homes 1.00 $0.248/SF
General Commercial 165.25 $0.128/SF
Office Commercial 31.91 $0.128/SF
Industrial 147.10 $0.150/SF
Existing Community Financial Commitment Comparison
The City of Grand Terrace has already made substantial �inancial commitments toward its General City Facilities system. These commitments are re�lected in the existing replacement values for City Hall, the general city vehicle �leet, City Yard facilities, and shared general city equipment, which together represent an estimated $11,551,415 in 2025 replacement cost. This amount captures the value of the current portfolio of administrative and operational assets that serve today’s residents and businesses.

By comparison, based on the corrected service population growth share, the growth-sized General City Facilities capital program totals $6,688,269. Of this amount, $3,281,522 is allocated to new development based on the City’s potential land-use share. After applying the existing General City Facilities development impact fee fund balance of $194,105 as a credit, the net share of the capital program to be funded by new development is $3,087,417, which represents 46.162% of the growthsized capital program.

This comparison demonstrates that the existing community has funded the majority of the General City Facilities system, and that new development is being asked to contribute only a proportional share necessary to accommodate its fair impact. The City’s approach avoids shifting existing de�iciencies onto new development while ensuring that future residents and employees will continue to receive the same standard of administrative and civic service as today’s community. 88

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Table 6-2
Allocation of Existing Cost per Land Use
Land Use
Service
Population
Allocation
Factor
Existing Financial
Commitment Per SF
Single Family Detached 999.56 $1.240/SF
Multi-Family Attached 180.18 $0.804/SF
Manufactured/Mobile Homes 31.57 $0.707/SF
General Commercial 152.85 $0.465/SF
Office Commercial 34.71 $0.458/SF
Industrial 237.50 $0.549/SF
Fee Schedule and Summary
Based on the cost of the growth-sized General City Facilities capital program and the allocation of those costs to new development, the City has determined the maximum justi�ied General City Facilities impact fee for each land use category. The fee is structured to ensure that new development contributes a fair and proportionate share of the costs associated with expanding City Hall, the general city vehicle �leet, City Yard facilities, and shared general city equipment so that the existing level of administrative and civic service is maintained as the community grows. Consistent with the requirements of Assembly Bill 602 (AB-602), residential fees are presented on a per–square foot basis, derived from per–dwelling unit calculations using the City’s adopted average dwelling sizes.

Nonresidential fees are also stated on a per–square foot basis, re�lecting the broad, shared manner in which General City Facilities support commercial and employment activity across all nonresidential land uses.

The resulting fee schedule applies the same underlying methodology described in this chapter, translating each land use’s allocated share of the net new-development cost into a fee per unit of development that is reasonably related to the demand it creates. The following table presents the maximum justi�ied General City Facilities impact fees by land use category. The City Council may adopt fees up to these amounts; adopting fees below the maximum justi�ied levels is a policy choice and would result in less than full cost recovery of the new development share of General City Facilities.
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City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Table 6-3
Summary of Proposed Development Impact Fees
Land Use Per SF
Single Family Detached $0.321/SF
Multi-Family Attached $0.132/SF
Manufactured/Mobile Homes $0.248/SF
General Commercial $0.128/SF
Office Commercial $0.128/SF
Industrial $0.150/SF
Current General City Facilities Development Impact Fees The City of Grand Terrace currently imposes a General City Facilities development impact fee only on residential development. As shown in the City’s adopted residential fee schedule, the existing General City Facilities fee is charged at a �lat rate of $1,102 per dwelling unit, applied equally to both detached and attached residential units. No General City Facilities impact fee is presently charged on nonresidential development.

The City accounts for these revenues in the Facilities Development special revenue fund. According to the City’s most recent Annual Comprehensive Financial Report (ACFR) for the �iscal year ended June 30, 2024, this fund reported an ending restricted fund balance of $194,105. This balance represents prior contributions from new residential development that are available to support eligible General City Facilities capital projects.

This nexus study updates and expands the program so that General City Facilities costs are allocated across both residential and nonresidential land uses in proportion to their service population. The resulting fee schedule replaces the existing residential-only structure with a set of maximum justi�ied fees by land use category, while recognizing the current Facilities Development fund balance as an offset to the new-development share of the capital program.

Five Findings

1. Purpose of the Fee
The purpose of the fee is to fund the expansion and modernization of General City Facilities— including City Hall, the general city vehicle �leet, City Yard facilities, and shared general city 90

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City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report equipment—necessary to maintain the City’s established level of administrative and civic service as new development increases the service population.

2. Use of the Fee
Fee revenues will be used to �inance the General City Facilities capital projects identi�ied in this study. Eligible uses include remodeling and expanding City Hall, adding general city vehicles to support administrative and �ield operations, expanding City Yard capacity, and acquiring the equipment and technology needed to place this expanded capacity into service.

All expenditures are limited to growth-related capital costs and may not be used for operations or routine maintenance.

3. Relationship Between Fee’s Use and Type of Development New development generates an increase in service population—through added residents and employment—which in turn increases the demand placed on the City’s General City Facilities.

Fee revenues will be used to expand General City Facilities capacity so that administrative and civic services remain available at the existing standard as the community grows. In this way, the use of the fee is directly related to the impacts of the development on the City’s general government system.

4. Relationship Between the Need for Facilities and the Type of Development The need for expanded General City Facilities arises directly from growth in residents and jobs. As the service population increases, additional administrative space, vehicles, yard capacity, and general city equipment are required to continue delivering existing levels of service. By allocating the growth-related portion of the General City Facilities capital program in proportion to each land use category’s share of service population at buildout, the fee ensures that each type of development contributes in accordance with the demand it creates.

5. Relationship Between Amount of the Fee and Cost Attributable to Development The amount of the fee is calculated by dividing each land use category’s allocated share of the net new-development cost of the General City Facilities capital program by the corresponding measure of new development (dwelling units and residential square footage for residential uses, and building square footage for nonresidential uses). Residential fees are expressed on a per–square foot basis consistent with Assembly Bill 602 (AB-602), and nonresidential fees are expressed on a per–square foot basis as well. This structure ensures that no land use is charged more than its proportional share of the cost of facilities needed to serve growth.

Implementation and Compliance Notes
Adoption and Program Structure: The City will update and readopt the General City Facilities development impact fee (DIF) by Council action upon adoption of this nexus study. The City will continue to impose, collect, and administer the fee as an existing component of its development impact fee program. Fee revenues remain restricted to eligible General City Facilities improvements 91

Chapter 6 General City Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report identi�ied in this study, including the expansion, remodel, or modernization of City Hall, the general city vehicle �leet, City Yard facilities, and general city equipment required to maintain service levels for the growing community.

Fund Accounting and Reporting: The City will continue to maintain the existing General City Facilities DIF fund/account. All fee revenues (and interest) will remain deposited into this account and expended only for the purposes identi�ied in this study. The City will continue publishing the annual AB-1600 report (Gov. Code §66006) and making the required �ive-year �indings for any unexpended balance (Gov. Code §66001(d)). If the City cannot make the required �ive-year �indings, any remaining balances must be refunded as provided by law.

Administration and Schedule Management: Fees are due at the time of building permit issuance.

The fee schedule shall be indexed annually to an appropriate construction-cost index, such as the Engineering News-Record (ENR) Building Cost Index. The City will maintain a public, up-to-date fee schedule and post the nexus study and schedule on its website for transparency.

Use of Funds (Eligibility): Expenditures are limited to the growth-related share of projects that add General City Facilities capacity. Eligible uses include planning, land acquisition (if needed), design, permitting, construction, remodel, and expansion of City Hall and City Yard facilities, acquisition of additional general city vehicles, and the purchase of furnishings, equipment, and technology systems directly tied to growth. Expenditures for like-for-like replacements that do not add capacity, as well as staf�ing, operations, or general government service costs, are not eligible.

Program Applicability: Fees apply to net new development (additions minus removals) as de�ined in this study. The City may program General City Facilities DIF revenues anywhere in the city where a listed project maintains the established level of administrative and civic service for the community.

End of Chapter
92

Chapter 7
Public Use (Community Centers) Facilities
Purpose and Scope
Purpose: This chapter establishes the Public Use Facilities development impact fee so that new residential development contributes its fair, proportional share of the capital facilities needed to serve additional residents. The program maintains the City’s existing level of service for public use facilities and multi-purpose recreation space by funding the construction and expansion of community center building space and the on-site improvements necessary to place that space into service. Revenues are deposited in a dedicated account and used solely for eligible Community Center capital facilities, consistent with the Mitigation Fee Act and AB-602. In accordance with AB-602, residential fees are expressed on a per square foot basis to re�lect proportional demand by unit size.

Scope of Improvements: Public Use Facilities include the construction, expansion, or relocation of community centers, meeting halls, and other public buildings that provide civic and recreational gathering space for residents. Eligible improvements include new or expanded community center buildings, core building systems, interior build-out, and related on-site improvements required to put those buildings into service (such as utility connections, access and circulation improvements, and code-triggered upgrades associated with expansions or renovations). Land acquisition associated with community center facilities is eligible when it is required to deliver the building program.

This program also includes the relocation and construction of a new Library facility, intended to provide dedicated space for Library functions currently housed within City Hall. For Library facilities, the City owns the building space while the County operates Library services. Impact fee revenues may be used only for capital building improvements and required site work (e.g., acquisition, construction, expansion, core systems, interior build-out, and necessary utility and access improvements) and may not be used for operations, programming, staf�ing, collections/materials, or other non-capital costs.

The Public Use Facilities program does not fund operations, routine maintenance, stand-alone repairs unrelated to growth, movable equipment, or non-community-center facilities. Park and outdoor recreation facilities are addressed separately under the City’s Parks Development Impact Fee.

Scope of Bene�iciaries: This fee applies to residential development only. Demand for Public Use Facilities (community centers and the relocated Library) is population-based, arising from household growth measured by persons-per-household (PPH) and translated into a square-feet-per-resident service standard. A defensible, proportional linkage to nonresidential �loor area is not established for this facility type, so nonresidential development is excluded.

Limiting the fee to residential development narrowly tailors the charge to demonstrated demand and maintains proportionality. The program is calibrated so that growth funds only its share of facilities required to serve new residents, thereby maintaining the City’s established level of service for both new and existing residents. Existing development is not charged for existing de�iciencies or past shortfalls.
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Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Credits or reimbursements are available where an applicant constructs eligible Public Use Facilities improvements or dedicates eligible land accepted by the City, consistent with this chapter.

Scope of Nexus: New residential development increases population, which in turn increases demand for multi-purpose public meeting space and Library services. The program measures that demand using the City’s existing service standard expressed in square feet per resident and sizes the growth share as the additional building area required to maintain that standard as development occurs.

The use of fee revenues is limited to capital facilities that add or expand Community Center and Library building space to serve residents; the fee is not used to rehabilitate or replace existing facilities without capacity expansion. Because the City’s empirical demand evidence is residentbased, the fee applies to residential development only.

The amount of the fee bears a reasonable relationship to development’s share of cost. The study converts the service standard into a cost per person by applying unit costs per building square foot (construction and land), then translates that to a per-residential-square-foot schedule and allocates by housing type to re�lect proportional demand. All calculations are performed at full precision in the model; values displayed in this chapter may be rounded for readability (e.g., currency to whole dollars).

Existing System
Assets and Infrastructure: Grand Terrace’s Public Use Facilities consist of indoor civic buildings that host public meetings, youth and senior programming, classes, cultural events, and drop-in recreation.

These facilities are purpose-built, climate-controlled spaces—multi-purpose rooms, classrooms, support areas, restrooms, storage, and administrative space—paired with the on-site improvements necessary to place them into service (e.g., access/circulation and utility connections). Unlike park acreage or library collections, Public Use Facilities are measured by building square footage because the service being delivered is fundamentally usable space capacity for people and programs.

Given the City’s smaller system, facilities are limited in number and program mix; the inventory nonetheless provides essential community meeting capacity and establishes the level of service (LOS) used in this chapter. The total existing building inventory is 36,575 square feet. The detailed facility inventory—including community center space and the City-owned Library building space—is presented in Table 7-1, which serves as the audit trail for the LOS calculation (square feet per resident) used later in this chapter. For readability, square footage values in Table 7-1 may be shown as whole numbers; any minor differences are due solely to display rounding. [This space left blank to fit the following table on one page.] 94

Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Table 7-1
Public Use Facilities Existing
Land Use Square Feet
Lions Club Community Center 21,985
Blue Mountain Vill Community Center 11,290
Library 3,300
Total 36,575
Existing Financial Commitment: To illustrate the scale of the City’s prior investment in Public Use Facilities, the planning-level replacement value of the current building inventory is estimated as follows.

This estimate represents what it would cost to replace the existing facilities in their current form and does not indicate a funding obligation or form part of the fee calculation basis.

A. Construction Component
• Inventory for replacement-value analysis: 36,575 SF
• Replacement construction cost per building SF: $450.00 • Estimated replacement construction value: $16,458,750 (calculation: 36,575 SF × $450/SF = $16,458,750)
B. Land Component
• Land cost per building SF (based on $1,235,565 per acre @ 0.33 FAR): $85.95 • Estimated land value for existing sites: $3,143,621
(calculation: 36,575 SF × $85.95/SF = $3,143,621)
C. Total Planning-Level Replacement Value
• Combined construction + land value: $19,602,371
(calculation: $16,458,750 + $3,143,621 = $19,602,371)
This replacement-value estimate provides context for the magnitude of the existing system; it does not create an obligation to replace existing facilities with fee revenues. New development pays only its proportional share to maintain the current service standard as growth occurs. Credits or reimbursements are available where an applicant constructs eligible Public Use Facilities improvements or dedicates eligible land accepted by the City, ensuring payers are not charged twice. 95

Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Growth and Demand
Method: The program maintains the City’s existing public meeting/Library building space per resident standard. The service standard used in the model is 2.799 square feet per resident, derived from the documented inventory (36,575 SF) and current resident population (13,069). This LOS is held constant for growth, so new residential development funds the additional building area required to preserve today’s service level for both new and existing residents. In the model, required new space is calculated as net-new residents × 2.799 SF per resident, and is priced using the unit cost components established elsewhere in this chapter.

Cost Basis: The cost of Public Use Facilities building space is priced per building square foot and consists of construction and land components. Calculations are performed at full precision in the model; values are displayed to 3 decimals for publication.

A) Construction Cost (2025 dollars): $450 per building SF Origin. The City’s prior public building construction basis, from the 2005–2006 Grand Terrace Development Impact Fee Nexus Study, was $250 per SF.

Escalation Method (ENR BCI). The historical basis is escalated to 2025 using the Engineering NewsRecord (ENR) Building Cost Index (BCI):
• Base construction cost (2005–2006): $250/SF
• ENR BCI (2025): 13,914
• ENR BCI (2005–2006): 7,722
• Escalation factor: 1.802 (= 13,914 ÷ 7,722)
• Resulting 2025 planning value: $450/SF (= 250 × 1.802, rounded) Formula. 2025 construction cost = 2005–2006 construction cost × (ENR BCI 2025 ÷ ENR BCI 2005– 2006).

B) Land Cost (2025 dollars): $85.95 per building SF
Approach. The City developed a Grand Terrace–speci�ic land basis using local market evidence suitable for civic use (recent listings/offerings and market indications). Candidate sites were screened to re�lect market-rate transactions between independent parties and to exclude internal transfers, distressed or subsidized sales, atypical encumbrances, speculative assemblages, or other non-market conditions. Each candidate was normalized to dollars per acre, converted to dollars per square foot of land, and then to dollars per square foot of building using a 0.33 �loor area ratio (FAR) appropriate for single-story/low-rise civic buildings with parking and circulation.

Planning value and conversion.
• Adopted land cost per acre: $1,235,565 per acre
96

Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report • Per land SF: $1,235,565 ÷ 43,560 = $28.36 per land SF • Per building SF (at FAR 0.33): $28.36 ÷ 0.33 ≈ $85.95 per building SF FAR Source. The 0.33 FAR assumption is consistent with the City’s 2005–2006 Nexus Study treatment for community center sites.

Documentation. The detailed comparable set, screening notes, and conversions are provided in Appendix H.

C) Total Unit Cost (2025 dollars): $535.95 per building SF • Construction: $450/SF
• Land: $85.95/SF
• Total: $535.95/SF
Calculation Framework

1. Convert units to residents. Net-new dwelling units are converted to net-new residents using the City’s persons-per-household by housing type.

2. Size required building area. Required space for growth is calculated as net-new residents ×

2.799 SF per resident (the City’s service standard).

3. Price the requirement. The required space is priced at $535.95 per building SF. Equivalently, the cost per additional resident is 2.799 × $535.95 = $1,500.13 (display value).

4. Express fees. Residential fees are expressed per residential square foot by housing type; the resulting schedule and revenue projection are presented in later sections.

Calculations are performed at full precision in the model; values are displayed at 3 decimals for publication (LOS shown as 2.799).

Required Building Area: To maintain the City’s service standard for Public Use Facilities, the required building area for growth is calculated as (net-new residents × service standard). • Growth population (net-new residents): 18,931.33
• Service standard (SF per resident): 2.799
• Required building area: 18,931.33 × 2.799 = 52,988.79 SF This �igure represents the additional building space needed to serve growth while preserving the existing level of service. Cost applications (construction and land) are addressed separately and are not included here.
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Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Fee Nexus and Allocation
Basis of Proportionality: New residential development adds population that uses Public Use Facilities. To maintain the City’s 2.799 square feet per resident standard, the number of net-new residents is multiplied by 2.799 to determine the required building space, which is then priced using the unit costs set out in this chapter. Fees are expressed per residential square foot so that larger homes (greater �loor area/occupancy) pay proportionally more. The fee applies to residential development only; a defensible proportional linkage to nonresidential �loor area is not established for this facility type.

Allocation by Housing Type: Fees are calibrated by housing type using the City’s persons-perhousehold and average unit size inputs, aligning payments with the relative demand each housing type places on Public Use Facilities while maintaining the same service standard for both new and existing residents.

Residential Fee Schedule (per square foot of unit �loor area): Fees are charged per residential square foot at building permit. Rates re�lect the established 2.799 SF per resident standard and the cost basis de�ined in this chapter. The fee applies to residential development only.

Table 7-2
Summary of Proposed Development Impact Fees
Land Use Fee Per SF
Single Family Detached $2.426/SF
Multi-Family Attached $4.286/SF
Manufactured/Mobile Homes $3.764/SF
Revenue Projection
Using the adopted per-residential-square-foot schedule and the model’s growth residential �loor area, the maximum Public Use Facilities fee revenue at buildout is:
• Single Family Detached: 3,235 units × $4,680.42 (model) = $15,141,152 • Multi-Family Attached: 3,801 units × $3,480.31 (model) = $13,228,661 • Manufactured/Mobile Homes: 7 units × $4,245.38 (model) = $29,718 Total (to the dollar): $28,399,531
Calculations are performed at full precision in the model; values are displayed to whole dollars for publication. Minor rounding differences may occur—the total controls. 98

Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Capital Program and Use of Funds
Impact fee revenues are restricted to capital improvements that add building capacity for Public Use Facilities. Eligible uses include planning, design, permitting, construction, interior build-out, and onsite improvements necessary to place new or expanded space into service (e.g., access/circulation and utility connections). Land acquisition is eligible when required to deliver the building program.

Fees may not be used for operations, routine maintenance, or like-for-like replacements that do not increase capacity. Funds may be programmed citywide wherever projects maintain the established service standard for residents. Credits or reimbursements will be provided where an applicant constructs eligible improvements or dedicates eligible land accepted by the City.

This program also includes Library building space. The City owns Library building facilities while County staff operate Library services; impact fee revenues may be used only for Library building capital (e.g., construction or relocation of a dedicated Library facility and required site work), not for operational services or materials.

To translate the growth requirement into deliverable capital work, the program identi�ies a scoped, fundable capital action as the vehicle for adding building square footage. The growth-related space may be implemented through additions at existing centers and/or a new multi-purpose facility, and may include the relocation and construction of a dedicated Library building. Final siting, phasing, and packaging will be determined during capital planning to maintain the City’s established level of service.

Public Use Facilities Projects
Project ID: PF-001
Project Title: Public Use Space Expansion
Description: This project expands Public Use building space to accommodate additional residents and maintain the City’s service standard of 2.799 square feet per resident. The scope includes planning, design, permitting, construction, interior build-out, and the on-site improvements necessary to place the space into service (e.g., access/circulation and utility connections). The expansion may be delivered through additions at existing centers and/or construction of a new multipurpose facility. The project provides 52,989 square feet of new building capacity identi�ied in the growth analysis, ensuring that the City’s level of service is maintained as development occurs.

Size: 52,989 square feet (growth-related building expansion) Location: To be determined
New Development Share: 100% – $28,399,531 (funded with Public Use Facilities Impact Fees) Existing Community Share: 0% – $0 (non-growth cost, funded from other sources) 99

Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Total Cost: $28,399,531
Timing: 2026-2036
Current Public Use Facilities Development Impact Fee
The City of Grand Terrace currently levies a Public Use Facilities development impact fee only on residential development. As shown in the City’s adopted residential development impact fee schedule, the existing Public Use Facilities fee is set at $674 per detached dwelling unit and $422 per attached dwelling unit. No Public Use Facilities impact fee is imposed on nonresidential development, and this nexus study maintains the existing policy that Public Use Facilities fees apply only to residential development.

Public Use Facilities fee revenues are presently recorded within the City’s Facilities Development special revenue fund, which also serves as the accounting home for General City Facilities development impact fees. Historically, the City has pooled facilities-related impact fee revenues into this single fund rather than maintaining separate fund balances by program. As a result, the current Public Use Facilities balance is held within the broader Facilities Development (General City Facilities) fund rather than being tracked as a standalone Public Use Facilities balance.

As part of this nexus study, RCS recommends that the City discontinue commingling Public Use Facilities and General City Facilities fee revenues within a single fund balance. To strengthen compliance with the Mitigation Fee Act—including the Act’s requirements for clear identi�ication of each fee program’s revenues, expenditures, and fund balances—it is further recommended that the City establish and maintain separate restricted funds or restricted accounts for each program.

Separating these balances will improve transparency and help ensure that each program’s revenues are used solely for the eligible capital improvements identi�ied for that speci�ic program in this study.

Administrative Provisions
Applicability and Collection: The Public Use Facilities fee applies to net-new residential �loor area.

Fees are calculated using the per-residential-square-foot schedule by housing type and collected at building permit (or as otherwise speci�ied by City ordinance). Additions are charged on the incremental square footage; demolitions and removals are credited, so applicants are charged only for net increases. Change-of-use situations are addressed by applying the schedule to the net change in residential �loor area.

Indexing and Price Date: Published rates re�lect 2025. Following adoption, the fee is indexed annually to preserve purchasing power. The construction component is adjusted using the City’s adopted Engineering News-Record (ENR) Building Cost Index (BCI) or successor index. The land component is not indexed by ENR; updates to land cost rely on current appraisals and documented comparable acquisitions/listings accepted by the City. Published rates re�lect the current index year; the City’s model retains full-precision calculations.
100

Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Use of Funds: Revenues are restricted to capital improvements that add building capacity, including planning, design, permitting, construction, interior build-out, and on-site improvements required to place space into service (e.g., access/circulation and utility connections). Land acquisition is eligible when required to deliver the building program. This program also includes Library building space; the City owns Library building facilities while County staff operate Library services. Fee revenues may be used only for Library building capital (e.g., construction or relocation of a dedicated Library facility and required site work), not for operational services or materials. Funds may be programmed citywide where projects maintain the established service standard.

Credits and Reimbursements: Where an applicant constructs eligible Public Use Facilities improvements or dedicates eligible land accepted by the City, the applicant is entitled to a credit or reimbursement up to the lesser of: (a) the actual, documented cost of the eligible improvement/land, or (b) the value recognized by this program for the same scope. Credits require a written agreement, apply only to the same project and program, and may not exceed the fee otherwise due. The City may require plans, invoices, appraisals, and other documentation to substantiate eligibility and value.

Adjustments and Appeals: An applicant may request an individualized fee adjustment by submitting substantial evidence (e.g., an independent fee study, current appraisal for land, or other technical documentation) demonstrating that the development’s demand or characteristics differ materially from the assumptions used in this chapter. The City will review the submission and may approve an adjustment to ensure the fee remains proportional.

Fund Accounting and Reporting: All revenues and expenditures are tracked in a separate account for Public Use Facilities. The City will complete required annual and periodic �indings and reporting for impact fees, including identifying balances, interest earnings, commitments, and project expenditures, and will make the �indings available consistent with applicable law.

Effective Date and Transition: The fee applies to projects deemed complete (or receiving building permits) on or after the effective date of the adopting ordinance, subject to any City-adopted transition provisions. Previously paid fees, credits, or development agreements remain in effect pursuant to their terms.

Rounding and Precision: Calculations are performed at full precision in the City’s model. For publication, all currency values are displayed to whole dollars, per-residential-square-foot rates are displayed to three decimals per SF, and the level of service is shown as 2.799 SF per resident. Any minor differences are solely due to display rounding — the total controls.

Five Findings

1. Purpose of the Fee
The purpose of the fee is to fund the expansion of Public Use Facilities building space (community centers and City-owned Library building space) necessary to maintain the 101

Chapter 7 Public Use Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report City’s established level of service as new residential development adds population that uses public meeting and Library space.

2. Use of the Fee
Fee revenues will be used to �inance capital building improvements that add capacity, including planning, design, permitting, construction, interior build-out, and on-site improvements required to place space into service (e.g., access/circulation and utility connections). Land acquisition is eligible when required to deliver the building program.

Funds are not used for operations or routine maintenance.

3. Relationship Between Fee’s Use and Type of Development New residential development increases population, which increases demand for Public Use Facilities. Fee revenues will be used to add building capacity that serves those residents.

Because the empirical demand is resident-based, the fee applies to residential development only; a proportional linkage to nonresidential �loor area is not established for this facility type.

4. Relationship Between Need and Type of Development
The need for expanded facilities arises directly from new residents. The City’s service standard is 2.799 square feet per resident. Applying this standard to the net-new population of 18,931 results in 52,989 square feet of required building area to maintain the existing level of service as development occurs.

5. Relationship Between Amount of Fee and Cost Attributable to Development The fee amount is derived by applying the unit cost of $535.95 per building square foot (construction plus land) to the 52,988.79 square feet of growth-required Public Use Facilities space, yielding a total growth cost of $28,399,531. This cost is then apportioned to residential development in proportion to demand by housing type, using persons-perhousehold and average residential unit size to translate the 2.799 square feet per resident service standard into a per-residential-square-foot schedule. Expressed as rates to three decimals, the resulting schedule is $2.426/SF for Single Family Detached, $4.286/SF for Multi-Family Attached, and $3.764/SF for Manufactured/Mobile Homes. This structure ensures that each housing type pays no more than the cost reasonably attributable to the demand it generates to maintain the City’s established level of service.

End of Chapter
102

Chapter 8
Parkland Acquisition and Park Facilities
Purpose and Scope
Purpose: The purpose of this chapter is to update and revalidate the City’s existing Parks Development Impact Fee (DIF) so that new residential development funds its fair, proportional share of parkland acquisition and park facility improvements required to maintain the City’s established level of park service as population grows. This update aligns the fee with current requirements of Assembly Bill 602 (AB-602) and the Mitigation Fee Act (Government Code § 66000 et seq.), ensuring that future development contributes appropriately to the park system’s capacity to serve residents.

Requirements under the Quimby Act (Government Code § 66477) for residential subdivisions remain in effect and are administered separately from this AB-1600 fee.

Scope of Improvements:

Parks improvements funded by the Parks Development Impact Fee include parkland acquisition and capacity-adding park projects that expand the system’s ability to serve residents. Eligible capital uses include parkland acquisition and capacity-adding park improvements, including planning, design, permitting, site preparation, and construction. Improvements may include multi-purpose turf and hardscape areas, courts and �ields, destination playgrounds, restrooms and support buildings, lighting and fencing, internal paths/trailheads within park sites, and on-site accessibility upgrades necessary to place new or expanded park capacity into service. Land acquisition is eligible when required to deliver the park program. Funds may not be used for operations, routine maintenance, or like-for-like replacements that do not increase capacity.

For residential subdivisions, the City administers parkland dedication and/or in-lieu fees under the Quimby Act (Government Code § 66477). Quimby resources may be used to acquire or develop parkland and neighborhood or community park facilities that will serve the subdivision. Use of Quimby for rehabilitation of existing parks is limited to circumstances allowed by statute, including �indings regarding de�iciency within the receiving area, foreseeable use by future subdivision residents, consistency with adopted plans, and an appropriate service radius after a public hearing.

Quimby is administered separately from the non-subdivision Parks Development Impact Fee; credit order and eligible-cost rules are structured to avoid double-counting, with credits provided only by written agreement and not to exceed the fee otherwise due.

Scope of Bene�iciaries: This program is resident-based and applies to residential development citywide. Fees are assessed per square foot of residential �loor area consistent with AB-602. For mixed-use projects, assessments are applied by category, and only the residential component is subject to the Parks fee. Residential categories include Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes. Because Parks facilities function as a citywide system, the improvements funded by this program primarily bene�it residents in both new and existing development, maintaining a consistent level of service across all neighborhoods. 103

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Scope of Nexus: For Parks, the nexus is resident-based. New dwelling units generate net-new residents, and those additional residents require park capacity to maintain the City’s established level of service (LOS). Net-new residents are calculated by multiplying new dwelling units by the applicable persons-per-household (PPH) for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes. Required park acreage is then determined by applying the City’s adopted acres-per-1,000-residents standard to the net-new resident total. That acreage is priced using the City’s unit costs per acre for land and park improvements to produce a cost per resident.

The result is translated to a cost per unit using PPH and then to a cost per residential square foot (three decimals) by dividing by the average dwelling square footage for each housing type, consistent with AB-602. For mixed-use development, the calculation applies only to the residential component.

Existing System
This section establishes the baseline park system used to evaluate the level of service and to derive the fee. It documents current inventories, states how LOS is measured, and explains how existing capacity represented by fund balances is treated in the calculations.

Park Inventory: This section establishes the baseline park system used for level of service and fee calculations. The City-owned parkland inventory is presented in Table 8-1, which lists each park by name and acreage and identi�ies the total park capacity used for the level-of-service calculation. The total parkland acreage shown in Table 8-1 re�lects the City’s current holdings and serves as the benchmark that new development must maintain under this program.

Table 8-1
Total Park Inventory
Park Name Acres
Grand Terrace Dog Park 0.62
Griffin Park 1.73
Richard Rollins Park 9.92
Veterans Freedom Park 4.31
TJ Austin Park 1.36
Susan Petta Park 2.30
Equivalent Capacity from Fee Fund Balance 0.026
Total 20.277 Acres
Treatment of Existing Capacity and Fund Balances: This section explains how existing Parks impact fee resources are treated so that growth pays only its proportional share. Any existing Parks impact fee fund balance is taken from the City’s audited annual �inancial reports (ACFRs) and converted to capacity-equivalent park acres using the combined per-acre cost (fair-market land value plus capacity-adding park improvements) established in this chapter’s cost basis. The resulting capacity is considered already in hand and is netted before allocating remaining costs to new 104

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report development. Balances are tracked within the City’s accounting system and reconciled to the audited �inancials to maintain a clear audit trail. This treatment ensures new development is not charged for capacity that has already been funded.

Current Level of Service: LOS is measured as acres per one thousand residents. Using the current resident population shown in the study tables, the totals above yield the City’s baseline LOS for the City’s Parks. The fee program is designed to maintain these existing service levels as growth occurs, consistent with the standards adopted in this chapter.

Existing Financial Commitment
This section provides a planning-level indication of the scale of the City’s prior investment in its park system. Because Parks are measured in acres, the replacement-value context is expressed in two components: (1) land value per acre applied to the City’s total parkland, and (2) capacity-adding park improvements per acre applied to developed park acres. This estimate is for context only; it does not create a funding obligation and is not used to derive the fee.

This estimate represents what it would cost to replace the existing facilities in their current form and does not indicate a funding obligation or form part of the fee calculation basis.

A. Land Component
• Total parkland acreage: 20.277 acres (display)
• Land value per acre: $1,100,000
• Estimated land value: $22,304,543
(calculation: 20.277 acres × $1,100,000/acre = $22,304,543) B. Park Improvement Component
• Developed park acres: 20.277 acres
• Park improvements cost per acre: $599,660
• Estimated improvements value: $12,159,220 (model, full precision) • (calculation: 20.277 acres × $599,660/acre = $12,159,220) C. Total Planning-Level Replacement Value
• Combined land and improvements value: $34,463,763
(calculation: $22,304,543 + $12,159,220 = $34,463,763)
105

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Calculations are performed at full precision in the City’s model; acreage is displayed to three decimals and currency to whole dollars, so minor differences may occur if recomputed from displayed �igures — the totals control.

Fund Balance Recognition: Any Parks impact fee fund balance reported in the City’s audited �inancial statements is converted to capacity-equivalent park acres using this chapter’s per-acre land and per-acre improvements costs and recognized as capacity already in hand before allocating remaining costs to growth. For the study year, the equivalent capacity re�lected by the current balance is 0.026 acres (display basis), which is netted prior to assigning new development’s share.

Standards & Application
The City uses two complementary tracks for Parks. For non-subdivision development, the Parks Development Impact Fee (DIF) is applied under the Mitigation Fee Act and expressed per residential square foot consistent with AB-602. For subdivisions, the City administers Quimby parkland dedication and/or in-lieu fees separately. The two tracks are coordinated to maintain the City’s adopted level of park service while avoiding double-counting.

Parks standard — Non-Subdivision (AB-1600 Fee): The non-subdivision Parks DIF maintains the City’s level of service by translating net-new residents into required park acres using the adopted standard of 1.552 acres per 1,000 residents. Required acres are then costed using the study’s peracre land and park improvement unit costs to derive a cost per resident. That cost is converted to a cost per dwelling unit using persons-per-household for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and expressed per residential square foot by dividing by the average unit size for each housing type, consistent with AB-602.

Parks standard — Subdivision (Quimby Dedication/Fee): For residential subdivisions, the City may require parkland dedication and/or in-lieu fees under the Quimby Act (Gov. Code § 66477).

Quimby requirements are administered separately from the non-subdivision Parks DIF and rely on the City’s Quimby standard to determine dedication or equivalent in-lieu value. Where statutory conditions are met, Quimby resources may be used to acquire or develop parkland and neighborhood/community park facilities that will serve the subdivision. Quimby credits are sequenced and applied under City rules to ensure the Parks DIF does not double-charge for the same capacity.

Application Rules: For non-subdivision projects, fees are assessed per residential square foot at building permit and calibrated by housing type using the study’s PPH and average unit size inputs.

Mixed-use projects are assessed by category; only the residential component is subject to the Parks DIF. Change-of-use and additions are assessed on the net increase in impact. Quimby applies only to subdivisions and is administered separately from the Parks DIF, with clearly de�ined crediting to prevent double-counting.
106

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Growth and Demand
This section quanti�ies the additional Parks system capacity required to maintain the City’s adopted level of service as development occurs. The calculation applies the study’s standards to net-new residents and identi�ies the resulting park acres required to serve growth.

Parks: Based on net-new residents of 18,931.33, applying the 1.552 acres per 1,000 residents standard yields 29.38 acres of additional park capacity required to maintain the existing level of service. Any Parks impact fee fund balance reported in the City’s audited �inancial statements is converted to capacity-equivalent acres using this chapter’s per-acre costs and recognized as capacity already in hand before allocating remaining costs to new development.

Cost Basis
Unit costs are stated in current study-year dollars. Parkland acquisition is based on local fair-market value evidence suitable for park use. Park improvements are based on the City’s historical per-acre park development baseline escalated to the study year using the Engineering News-Record (ENR) Building Cost Index (BCI). These unit costs price the incremental park acres required by the level-ofservice standard.

Parkland Acquisition (Fair-Market Value per acre): The study adopts $1,100,000 per acre as the planning fair-market value for park-suitable sites in Grand Terrace. The value is supported by local evidence, screened for market-rate conditions and park feasibility (frontage, utilities, typical shape/size), and normalized to dollars per acre. The full comparable set, screening notes, and arithmetic are provided in Appendix H (Parks Quality of Life Infrastructure Cost Basis).

Park Improvements (Capacity-Adding Construction per acre): The City’s historical turn-key park development baseline (2005–2006 dollars) is escalated to the study year using ENR BCI. The calculation follows the standard formula:

Study-year park improvements ($/acre) = 2005–2006 baseline ($/acre) × (ENR BCI – study year ÷ ENR BCI – 2005–2006)
This escalation method is consistent with the approach applied in the Public Use Facilities chapter, using the same ENR BCI framework and study-year adjustment. The resulting study-year planning value is used throughout this chapter’s calculations.

Use in Calculations: For Parks, the combined per-acre cost equals (parkland $/acre) + (park improvements $/acre). Required acres are computed from the adopted 1.552 acres per 1,000 residents standard applied to net-new residents. The product yields total growth cost, which is translated to cost per resident, then cost per dwelling unit using persons-per-household for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and then expressed per residential square foot (three decimals) by dividing by the average unit size for each housing type, consistent with AB-602.
107

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Calculations are performed at full precision in the City’s model; currency values shown in this section are displayed to whole dollars for publication.

Derivation of Maximum Justi�ied Fees
Fees are derived and expressed in accordance with AB-602 so that results are stated per square foot.

For Parks, the calculation is resident-based and applies to residential development. All steps use the study-year costs in the Cost Basis section and the service standards in the Standards and Application section.

Residential — Parks (Non-Subdivision): Required park acreage is determined by applying the Parks standard of 1.552 acres per 1,000 residents to net-new residents. The resulting acres are priced using the combined per-acre park cost to determine a cost per resident, translated to a cost per unit using persons-per-household for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and then to a cost per square foot by dividing by the average dwelling square footage for each housing type. For mixed-use development, only the residential component is subject to the Parks fee.

Subdivision — Parks (Quimby): For subdivisions, the City administers Quimby requirements as parkland dedication, in-lieu fee, or a combination, using a standard of 3.000 acres per 1,000 residents as authorized by Gov. Code §66477 (Quimby Act). This Quimby standard is distinct from the Mitigation Fee Act framework that governs the non-subdivision Parks impact fee. Dedicated land is valued at the current fair market value and must meet this chapter’s eligibility, and in-lieu fees are programmed consistent with statutory geographic and timing requirements. To prevent doublecounting where both mechanisms apply, the City recognizes Quimby contributions �irst for their eligible purpose and then assesses the non-subdivision Parks impact fee only for remaining, nonduplicative, growth-related costs.

Mixed-Use, Change of Use, and Additions: Mixed-use projects are assessed by category, with only the residential portion subject to the Parks residential fee. Changes of use and additions are assessed on the net increase in impact relative to the prior legal use.

Capital Program and Eligibility
The capital program identi�ies the growth-eligible projects and de�ines what costs qualify for Parks.

Projects are selected to maintain the City’s adopted service standards as development occurs, and each appropriation will be documented elsewhere in this chapter to preserve a clear audit trail under the Mitigation Fee Act.

Eligibility Test — Parks: Parks funds may be used for parkland acquisition and for capital improvements that add usable recreation capacity to the City’s park system. Eligible work includes site acquisition; site preparation and utility extensions; multi-purpose turf and hardscape areas; �ields and courts; destination playgrounds; restrooms and support buildings; lighting and fencing; 108

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report internal paths and trailheads; irrigation; and accessibility features necessary to place new capacity into service. Planning, environmental review, design, permitting, construction management, and prudent contingencies are eligible when they are capitalized to deliver new capacity. Operations and routine maintenance, programming, rolling stock, and like-for-like replacements that do not add capacity are not eligible.

Quimby Interface — Eligible Uses and Coordination: Quimby requirements may be satis�ied through parkland dedication, in-lieu fees, or a combination. Quimby contributions may be used to acquire or develop neighborhood or community park and recreation facilities that will serve the subdivision, and—where statutory conditions and �indings are met—to rehabilitate existing park facilities. This chapter coordinates Quimby with the non-subdivision Parks impact fee by recognizing Quimby contributions �irst for their eligible purpose and then applying the Parks impact fee only to remaining, non-duplicative, growth-related costs. The City will make any required geographic and service �indings at appropriation to ensure compliance with the Subdivision Map Act.

Land Dedication and Site Control: Where a development dedicates parkland that meets the eligibility criteria of this chapter, the land is credited at fair market value and can be incorporated into the capital program. For City acquisitions, fee revenues may be combined with grants or other sources to assemble sites of suf�icient size and con�iguration to function as neighborhood or community parks.

Soft Costs and Delivery: Capital soft costs that are integral to delivering new capacity are allowable within the Parks improvements cost basis, including planning, environmental clearance, design, permitting, construction management, and prudent contingencies. These costs are tracked by project to support clear crediting and reimbursement.

Replacement and Rehabilitation: Replacement or rehabilitation projects are eligible only when they create additional usable recreation capacity, such as converting underutilized space to multi-use courts or expanding a facility’s functional area. Work that merely restores existing capacity without expansion is not eligible under this fee.

Joint and Partnership Projects: Projects delivered with schools, other public agencies, or nonpro�its are eligible where they add recreation capacity that is available to City residents under enforceable joint-use or access agreements. The fee contribution is limited to the proportional share of capacity made available to the public consistent with this chapter.

Project List: This subsection presents the growth-eligible capital program for Parks as programlevel, citywide entries. For Parks, the program aggregates all AB-1600 receipts to acquire new parkland and construct capacity-adding park facilities needed to maintain the adopted level of service. Each entry is formatted using the standard headings used throughout this study so the scope, size, cost, and timing are clear and auditable.

The project entry that follows establishes the citywide Parks program and prices the growth-related capacity at the study-year unit costs. Subsequent entries can be added in the same format as additional program or site needs are identi�ied.
109

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Parkland Acquisition and Park Facilities Projects
Project ID: PK-001
Project Title: Parkland Acquisition & Facilities Improvements – Citywide Program Description: This program explicitly authorizes the acquisition of new parkland and the construction of capacity-adding park improvements to maintain the adopted level of service as development occurs. Eligible work includes land acquisition and construction of new or expanded park facilities that increase usable recreation capacity (for example, multi-purpose turf and hardscape areas, �ields and courts, destination playgrounds, restrooms and support buildings, lighting and fencing, internal paths and trailheads, irrigation, and accessibility features). Operations and maintenance, programming, rolling stock, and like-for-like replacements that do not add capacity are excluded.

Size (Gross Program): 29.38 acres (growth-related parkland acquisition and development) Location: Citywide
New Development Share: 100% — $49,938,431 (funded with Parkland Acquisition and Park Facilities Impact Fees)
Existing Community Share: 0% — $0
Total: $49,938,431
Timing: 2026–2036
Credits, Reimbursements, and In-Lieu
This section establishes how development-provided parkland and park improvements are recognized, how reimbursements may be issued when a project delivers more than its fee obligation, and how Quimby subdivision obligations are coordinated so costs are not duplicated. Credits apply only to eligible, capacity-adding parkland or park improvements under the Parks component and are calculated using the valuation methods in this chapter. Credits do not fund operations, maintenance, or like-for-like replacements that do not increase usable capacity.

Land Dedication Credits: Where a development dedicates parkland that meets this chapter’s eligibility, the City grants a credit valued at current fair-market value for park-suitable sites. Eligibility includes appropriate size, con�iguration, and characteristics to function as a neighborhood or community park consistent with the level-of-service standard. The City may require an appraisal or other accepted valuation evidence and may adjust the credit to re�lect encumbrances, unusable areas, or conditions that limit recreation capacity.

Construction Credits: Where a development constructs eligible, capacity-adding park improvements, the City grants a credit for the documented, eligible construction cost. Valuation relies 110

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report on approved engineers’ estimates, awarded bids, or veri�ied costs for the eligible scope.

Improvements must add usable recreation capacity; like-for-like replacements, cosmetic upgrades, and routine maintenance do not qualify.

Application and Limits: Credits are applied to the corresponding Parks fee at permit issuance or at another de�ined milestone consistent with City procedures. Credits may not exceed the fee otherwise due for the same project and component unless the City enters into a reimbursement agreement.

Credits are recorded to preserve the audit trail required by the Mitigation Fee Act and are applied before calculating any residual fee for the same component and project phase.

Reimbursements: When a developer delivers eligible park capacity that exceeds the project’s creditable obligation and the improvement or acquisition appears on, or is added to, the capital program for this chapter, the City may enter into a reimbursement agreement. Reimbursements are paid when funds are available and in accordance with City priorities. Agreements identify the eligible scope, the documented cost basis, and the terms that govern reimbursement without doublecounting.

Quimby Coordination: Quimby obligations for residential subdivisions are administered under the Subdivision Map Act and are separate from this impact fee. Where both mechanisms apply to the same project, the City recognizes Quimby parkland dedication or in-lieu fees �irst for their eligible purpose, then applies the non-subdivision Parks impact fee only to remaining, non-duplicative, growth-related costs. This sequencing ensures the Parks fee does not duplicate capacity already provided under Quimby.

Documentation: Each credit or reimbursement is memorialized in a written instrument that describes the facility or land, the eligible scope, the valuation method used, and the fee component to which the credit applies. The City maintains records suf�icient to demonstrate that credited or reimbursed items add usable recreation capacity, align with this chapter’s eligibility, and remain consistent with the level-of-service standards used to derive the fees.

Summary of Development Impact Fees
Proposed Parks Fees (AB-1600 — Table 8-2): The table below summarizes the study-year Parks Development Impact Fees expressed per square foot under AB-602, derived from the 1.552 acresper-1,000 residents standard and this chapter’s cost basis. Use Table 8-2 as the of�icial schedule for residential projects outside the subdivision process.
[This space left blank to fit the following table on one page.] 111

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Table 8-2
Proposed AB-1600 Park Development Impact Fees
Land Use Impact Fee per SF
Single Family Detached $4.267/SF
Multi-Family Attached $7.537/SF
Manufactured/Mobile Homes $6.618/SF
Quimby Park Fees (Subdivision — Table 8-3): The following table summarizes Quimby subdivision obligations—parkland dedication, in-lieu fee, or a combination—based on the City’s adopted standard. Quimby is administered separately from the AB-1600 fee; contributions in Table 8-3 are recognized �irst to avoid double-counting.

Table 8-3
Proposed Quimby Park Fees
Land Use Impact Fee per SF
Single Family Detached $8.247/SF
Multiple-Family Attached $14.569/SF
Manufactured/Mobile Homes $12.793/SF
Current Park Development Impact Fees
The City of Grand Terrace currently levies a Parks-related development impact fee on residential development under the “Parkland and Open Space Acquisition Fund” line in the adopted Residential Permit & Impact Fees schedule. The existing fees are set at $7,241 per detached dwelling unit and $4,534 per attached dwelling unit. No Parks impact fee is imposed on nonresidential development at this time, and this nexus study maintains the existing policy that Parks fees apply solely to residential development.

Parks fee revenues are recorded within the City’s Park Development special revenue fund. In the City’s most recent Annual Comprehensive Financial Report (ACFR) for the �iscal year ended June 30, 2024, the Park Development fund reports a restricted ending fund balance of $43,698. This balance represents accumulated Parks impact fee revenues available for eligible parkland acquisition and capacity-adding park improvements consistent with this chapter.

Although the current schedule presents Parks charges as a per-dwelling-unit fee, this nexus study converts the Parks Development Impact Fee to a per residential square foot schedule consistent with Assembly Bill 602 (AB-602). This conversion improves proportionality by aligning payments with residential �loor area, preserves the City’s adopted level of park service as new residential development adds population, and supports compliance with the Mitigation Fee Act by clearly identifying the fee’s use, cost basis, and fund accounting treatment. 112

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Administrative Provisions
This section sets the rules for how fees are calculated, collected, indexed, documented, and administered so the program remains consistent, auditable, and simple to apply in day-to-day permitting.

Adoption and Effective Date: Fees are established by ordinance and become effective as provided by law. Applications that are vested or deemed complete before the effective date are processed under the prior rules; all others use this chapter. Subdivision Park requirements are administered separately under the Subdivision Map Act.

Point of Collection: For development subject to this chapter, fees are calculated using the schedules in effect on the date of permit issuance and are collected at building permit issuance unless City procedures specify an earlier milestone. For phased projects, fees are calculated and collected by phase based on the �loor area or units permitted in each phase. Payment timing conforms to Government Code § 66007; fees are due at building permit unless otherwise provided by ordinance or agreement, and the City may allow collection at �inal inspection/certi�icate of occupancy or earlier by agreement.

Calculation Inputs: Applicants must provide residential �loor area by housing type so the City can apply the per-square-foot schedules. Persons-per-household and average dwelling square footage are the study inputs used to translate the level-of-service standard to per-square-foot rates.

Mixed-Use, Change of Use, and Additions: For mixed-use projects, only the residential component is subject to the Parks fee. Change-of-use and additions are assessed on the net increase in impact based on the incremental residential �loor area.

Indexing: Fee schedules are updated annually using the City’s adopted construction cost index. For Parks, the improvements component is indexed annually using the City’s adopted ENR Building Cost Index (or successor). The land component is not indexed by ENR and is recalibrated during formal study updates using current appraisals and documented local market evidence.

Rounding and Publication: All computations use full precision in the City’s model. For publication, per-square-foot rates are shown to three decimals ($0.001), and totals are shown to whole dollars.

Any per-unit amounts shown for reference are rounded to the nearest dollar. The City will publish the schedules and a plain-language guide showing how to read and apply them.

Administrative Adjustments and Appeals: If an applicant believes a fee has been misapplied under this chapter (for example, an incorrect housing type classi�ication or �loor-area measurement), the City may process an administrative adjustment based on substantial evidence submitted by the applicant. Requests for adjustment must be made before fee payment. Appeals follow the procedures set out in the adopting ordinance and applicable law.

Severability and Interpretation: If any provision of this chapter is held invalid, the remaining provisions remain in effect. Terms are interpreted to further the purpose of maintaining adopted levels of park service and funding growth-related capacity consistent with this study. 113

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report Five Findings

1. Purpose of the Fee
The purpose of the fee is to fund the expansion of park capacity required to maintain the City’s established level of park service as new residential development adds population. The fee ensures that growth contributes its fair, proportional share toward acquiring parkland and delivering capacity-adding park improvements needed to serve new residents.

2. Use of the Fee
Fee revenues will be used to �inance parkland acquisition and capacity-adding park improvements necessary to place new park capacity into service. Eligible improvements include planning, design, permitting, site preparation, multi-purpose turf and hardscape areas, �ields and courts, destination playgrounds, restrooms and support buildings, lighting and fencing, internal paths and trailheads within park sites, irrigation, and accessibility features. Operations and maintenance, programming, landscaping or aesthetic work that does not add capacity, rolling stock, and like-for-like replacements are not funded. Quimby subdivision obligations are administered separately.

3. Relationship Between the Fee’s Use and the Type of Development New residential development increases population, which increases demand for parkland and park facilities. The fee applies to residential development (non-subdivision) and funds park capacity that serves those residents. For mixed-use projects, only the residential component is subject to the Parks fee. Fee uses therefore match the type of development that creates the need.

4. Relationship Between the Need for Facilities and the Type of Development The City’s park standard is 1.552 acres per 1,000 residents. Applying this standard to the net-new residential population of 18,931.33 results in 29.38 acres of additional park capacity required to maintain the existing level of service. Any Parks impact fee fund balance reported in the City’s audited financial statements is converted to capacityequivalent acres using this chapter’s per-acre costs and recognized as capacity already in hand before allocating remaining costs to new development.

5. Relationship Between the Amount of the Fee and the Cost Attributable to Development The fee amount is derived by pricing the required park acres using study-year unit costs per acre for land and capacity-adding park improvements. The resulting growth cost is translated to a cost per resident, then to a cost per dwelling unit by housing type using persons-perhousehold for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and then expressed per residential square foot by dividing by the average dwelling size for each housing type, consistent with AB-602. Published per-square-foot rates are 114

Chapter 8 Parkland Acquisition and Park Facilities
City of Grand Terrace 2026-27 Development Impact Fee Calculation and Nexus Report shown to three decimals; no housing type is charged more than the cost reasonably attributable to the demand it generates to maintain the City’s adopted level of service.

End of Chapter
115

APPENDIX A

MASTER DEVELOPMENT IMPACT FEE SCHEDULE
116

Land Use Cost Basis
Law Enforcement
Facilities
Fire Facilities
Local Street
Improvements Regional Circulation General City Facilties Public Use
Facilties
Parkland
Acquisition and
Park Facilities
Single Family Detached Per Square Foot $0.058 $0.831 $0.378 $0.362 $0.321 $2.426 $4.267 Multi-Family Attached Per Square Foot $0.155 $1.365 $0.359 $0.344 $0.132 $4.286 $7.537 Manufactured/Mobile Homes Per Square Foot $0.069 $1.492 $0.285 $0.273 $0.248 $3.764 $6.618 General Commercial Per Square Foot $0.154 $0.388 $2.685 $2.572 $0.128 - - Office Commercial Per Square Foot $0.109 $0.509 $0.806 $0.772 $0.128 - - Industrial Per Square Foot $0.052 $0.101 $0.447 $0.429 $0.150 - - Land Use DIF Total
Single Family Detached $8.643 Single-Family Residential $8.247 Per SF Multi-Family Attached $14.177 Multiple-Family Residential $14.569 Per SF Manufactured/Mobile Homes $12.749 Mobile Home Dwelling Units $12.793 Per SF General Commercial $5.927 For reference only: Applies to residential subdivisions subject to the City’s Quimby Office Commercial $2.323 ordinance. Administered under the Subdivision Map Act; land dedication and/or Industrial $1.179 in lieu is credited first to avoid double counting with Parks DIF. Not a development impact fee (not included in Total DIF).

City of Grand Terrace Development Impact Fee Master Fee Schedule Subdivision Park Requirement (Quimby Act)
117

APPENDIX B

GRAND TERRACE LAND USE CROSSWALK
118

Appendix B: Grand Terrace Land Use Crosswalk
Purpose: Align Grand Terrace General Plan land use designations and Housing Element categories to the standardized Nexus Study land use categories for use in the Access Study and Development Impact Fee program.

General Plan
Designation
Housing Element /
Overlay Nexus Category Notes
Hillside Low Density
Residential
N/A Single-Family Detached Low intensity hillside
areas.

Low Density Residential RHNA SFR Sites Single-Family Detached Conventional SFR
neighborhoods.

Medium Density
Residential RHNA Mixed Density Single-Family Detached / Multi-Family Attached Depends on product
type.

Medium High Density
Residential
Higher-Density RHNA
Sites
Multi-Family Attached Townhomes,
apartments, condos.

General Commercial Commercial Corridors General Commercial Retail, service, dining, commercial pads.

Office Commercial Medical/Office Sites Office Commercial Professional/office uses.

Light Industrial Employment Areas Industrial Light manufacturing, warehousing.

Floodplain Industrial Employment Areas (FP) Industrial
Industrial uses with FP
constraints.

Mixed Use MU Overlays Split by entitlement
Residential = SFD/MFA;
Nonres =
Commercial/Office.

Manufactured Housing
Areas
Mobile Home Parks
Manufactured/Mobile
Homes
Per Housing Element
inventory.

Public Schools / Civic Excluded
Government, civic,
educational; excluded
from fees.

Hillside Open Space Open Space Excluded Permanent open space.

Streets / R/W N/A Excluded
Non-developable public
right-of-way.
119

APPENDIX C

PERSONS-PER-HOUSEHOLD (PPH) METHODOLOGY
120

Appendix C: Persons-Per-Household (PPH) Methodology
Purpose
This appendix documents the derivation and application of persons-per-household (PPH) factors used to translate population impacts into dwelling-unit equivalents for fee allocation.

It supplements Chapter 2 with full methods, category definitions, quality assurance (QA), and a worked application pattern. The approach is designed to meet transparency and proportionality standards under the Mitigation Fee Act (Gov. Code §§66000 et seq.) and AB602.

Data Sources & Fixed Household Structure Approach
Primary data are the U.S. Census Bureau American Community Survey (ACS) 2019–2023 fiveyear estimates for the City of Grand Terrace. Households by structure type and tenure are taken from ACS Table B25032 (Tenure by Units in Structure). Population by structure type and tenure is taken from ACS Table B25033 (Total Population in Occupied Housing Units by Tenure by Units in Structure). The analysis applies the Fixed Household Structure Method, pooling owner-occupied and renter-occupied households into three residential categories aligned with this Nexus Study’s adopted land use structure.

Category Definitions (“Buckets”)
For Grand Terrace, the adopted residential categories are:
• Single Family Detached: 3.12 persons per household
• Multi-Family Attached: 2.32 persons per household
• Manufactured/Mobile Homes: 2.83 persons per household Note on numerical presentation: All calculations are performed at full precision in the underlying model. For readability and consistency with Chapter 2, persons-per-household (PPH) factors are displayed to two decimals in this appendix.

Calculation Method
For each residential category (c), persons per household (PPH) are calculated as: PPHc = Populationc ÷ Householdsc. Household totals by structure type are taken from ACS Table B25032 for both owner-occupied and renter-occupied units. Population totals by structure type are taken from ACS Table B25033. Because ACS Table B25033 provides a combined population total for “1, detached or attached,” population within that group is allocated between detached and attached structures proportionally to their respective household shares from ACS Table B25032. Owner and renter results are then pooled to yield the final PPH factors by category.
121

Grand Terrace — Step-by-Step (from ACS B25032/B25033)
Structure Type Owner Units Renter Units
1, detached 2,287 426
1, attached 192 116
Two or more units (all
attached types)
85 1,129
Mobile home 205 103
Structure Type Owner Population Renter Population
1, detached or attached
(combined) 7,375 2,098
2 to 4 units 219 1,043
5 or more units 44 1,212
Mobile home 662 211
Population is split based on detached vs. attached household shares within the 1-unit category for each tenure group, using B25032 household counts.

Residential
Category Population Households Persons per Household (PPH) Single-Family
Detached
8452.088 2,713 3.12
Multi-Family
Attached
3539.819 1,522 2.32
Manufactured/Mobile
Homes
873 308 2.83
122

Results — Adopted PPH Factors (ACS 2019–2023, Grand Terrace) Application of the Fixed Household Structure Method to Grand Terrace’s ACS data yields the following persons-per-household (PPH) factors by residential category:
• Single Family Detached: 3.12 persons per household
• Multi-Family Attached: 2.32 persons per household
• Manufactured/Mobile Homes: 2.83 persons per household These PPH assumptions are applied consistently throughout the Grand Terrace Development Impact Fee Nexus Study to project population growth attributable to new residential development and to allocate capital facility costs proportionally.

Application in the Fee Program
PPH factors convert new housing units into the number of new residents added to the City.

That projected population growth defines the service population basis for facilities such as Law Enforcement, Street Improvements, General City Facilities, Public Use Facilities, and Parks. By translating dwelling units into residents consistently by residential category, the study ensures that growth-related capital costs are distributed proportionally across land uses.

Sensitivity, Reasonableness & Quality Assurance (QA)
Five-year ACS data are used for city-level stability and reproducibility. The use of ACS Tables B25032 and B25033 provides a transparent link between households and population by structure type and tenure. QA steps confirm that household totals reconcile to ACS totals by tenure, that allocated 1-unit population fully reconciles to the combined B25033 totals, and that pooled PPH factors match those used in Chapter 2 and throughout the fee model. 123

APPENDIX D

AVERAGE RESIDENTIAL UNIT SIZE
124

Appendix D: Average Residential Unit Size (ARUS)
Purpose
This appendix documents the adopted Average Residential Unit Sizes (ARUS) used in the Grand Terrace Development Impact Fee Study. These values are required to convert between dollars per dwelling unit ($/DU) and dollars per square foot ($/SF) and to support transparent, replicable fee calculations consistent with the Mitigation Fee Act (Gov. Code §§ 66000 et seq.) and AB‑602. The methodology mirrors the adopted Grand Terrace ARUS approach, expanded to incorporate empirical market observations for Grand Terrace, consistent with consultant practice for cities without adopted unit‑size standards.

Scope
Applies to the Grand Terrace residential land use categories documented in Chapter 2:

Single‑Family Detached, Multi‑Family Attached, and Manufactured/Mobile Homes. Accessory Dwelling Units (ADUs) are addressed separately.

Method & Justification
Grand Terrace does not adopt minimum or typical residential unit sizes in its General Plan or Zoning Code. Therefore, an empirically derived ARUS method is used, relying on reproducible observations from local listings, apartment floorplans, and manufactured home listings within the City of Grand Terrace. These sources provide transparent, documentable square‑footage data sufficient to support legally defensible ARUS assumptions under AB‑602.

All observations were captured November 2025 and are reproducible from public listing platforms and property‑manager floorplan pages.

Public Data Sources
The ARUS values for Grand Terrace rely on the following public sources:
• Highlands at Grand Terrace — Floorplans (Greystar): 668 sq ft (1×1), 861 sq ft (2×1), 884 sq ft (2×2).
• Heights at Grand Terrace — Floorplans (Harbor Group): 750 sq ft (1 BR), 1,000 sq ft (2 BR).

These values were used to compute the 1BR and 2BR means and the equal‑weight multi‑family average.
• Grand Terrace single‑family listings (Redfin) with explicit living‑area values, including:
1,485 sq ft (Vivienda Ave), 1,515 sq ft (Miriam Way), 1,780 sq ft (Eton Dr), 1,916 sq ft (sample listing), 1,955 sq ft (Miriam Way), 1,991 sq ft (Lark St), 2,061 sq ft (Robin Way), 2,284 sq ft (Lark St). Median derived from the observed set.
• Manufactured/Mobile homes in Grand Terrace (Realtor.com): observed sizes included 690, 701, 940, 1,128, 1,288, 1,344, and 1,440 sq ft. Median used for ARUS. 125

Calculation Notes
Each ARUS value is derived using a category‑appropriate method. Multi‑family averages were calculated using a two‑step process: (1) calculate 1BR and 2BR mean unit sizes using the site floorplans; and (2) take the equal‑weight average of those two means. SFR used the median of observed Grand Terrace listings. Manufactured/Mobile Homes used the median of all observed listings with explicit size values. All ARUS values are rounded to whole square feet for publication, with full precision maintained internally.

Adopted Average Unit Sizes
Residential Category Adopted ARUS (SF/Unit) Use in Fee Program Single‑Family Detached 1,916 Convert $/DU ↔ $/SF;
residential fee calculations
Multi‑Family Attached 812 Convert $/DU ↔ $/SF;
residential fee calculations
Manufactured/Mobile
Homes
1,128 Convert $/DU ↔ $/SF;
residential fee calculations
126

APPENDIX E

NET NEW FEE APPLICATION
127

Appendix E: Net New Fee Application
Purpose
Development impact fees are assessed only on net-new floor area or net-new development intensity. When a project replaces, demolishes, or changes the use of an existing structure, the City calculates the fee based on the difference between the proposed development and the legally existing development.

The net-new method ensures that applicants are charged only for additional demand attributable to growth and are not double-charged for previously constructed and legally permitted floor area.

Applicability (Programs & Units)
This method applies to the City of Grand Terrace’s adopted Development Impact Fee programs assessed on a per-square-foot ($/SF) basis. The examples below use the combined recommended maximum DIF rates from Chapter 2 (Table 2-4) as a uniform demonstration across land uses.

Applicable land uses and reference rates:
• Single-Family Detached – $8.643/SF
• Multi-Family Attached – $14.177/SF
• Manufactured/Mobile Homes – $12.749/SF
• General Commercial – $5.927/SF
• Office Commercial – $2.323/SF
• Industrial – $1.179/SF
Calculation Rules (Net New)
• Establish Existing Legal Use — Determine the fee credit from the existing legal use based on its current floor area and the applicable rate at the time of permit. Credits apply only to permitted, legal existing development.
• Establish Proposed Use — Calculate the proposed fee using the adopted rate and the new floor area.
• Compute Net New — Net New DIF = Proposed DIF − Existing DIF (minimum zero). Fees are applied only to the incremental increase in impact. • Change of Use — Existing credits are based on prior legal uses verified by permits or other City records (e.g., certificates of occupancy, assessor data, or utility records). • Mixed-Use Sites — Apply the method by component (e.g., residential, commercial, industrial) and sum the net new fees across all components. 128

• Partial Demolition/Additions — Fee credits are proportional to the remaining existing area. Demolished floor area does not receive a fee credit beyond the documented existing legal use.

Worked Examples (Using Combined DIF Demonstration Rates) Example A — Commercial Rebuild (General Commercial → General Commercial):

Existing Building: 5,000 SF (General Commercial)
Proposed Building: 7,000 SF (General Commercial)
Rate: $5.927/SF
Existing Credit = 5,000 × $5.927 = $29,635
Proposed Fee = 7,000 × $5.927 = $41,489
Net New DIF = (7,000 − 5,000) × $5.927
= 2,000 × $5.927
= $11,854
Example B — Change of Use (Industrial → General Commercial):

Existing Building: 10,000 SF (Industrial)
Proposed Use: 10,000 SF (General Commercial)
Industrial Rate: $1.179/SF
General Commercial Rate: $5.927/SF
Existing Credit = 10,000 × $1.179 = $11,790
Proposed Fee = 10,000 × $5.927 = $59,270
Net New DIF = 10,000 × ($5.927 − $1.179)
= 10,000 × $4.748
= $47,480
Example C — Residential Addition (Single Family Detached → Single Family Detached):

Existing Dwelling: 1,800 SF
Proposed Dwelling: 2,500 SF
Rate: $8.643/SF
Existing Credit = 1,800 × $8.643 = $15,557
Proposed Fee = 2,500 × $8.643 = $21,608
129

Net New DIF = (2,500 − 1,800) × $8.643
= 700 × $8.643
= $6,050
Example D — Mixed-Use Redevelopment (General Commercial + Multi-Family Attached):

Existing: 2,000 SF (General Commercial)
Proposed:
• 3,000 SF (General Commercial)
• 5,000 SF (Multi-Family Attached)
General Commercial Rate: $5.927/SF
Multi-Family Attached Rate: $14.177/SF
General Commercial Credit = 2,000 × $5.927 = $11,854
General Commercial Fee = 3,000 × $5.927 = $17,781
Net General Commercial DIF = $5,927
Multi-Family DIF = 5,000 × $14.177 = $70,885
Total Net New DIF = $5,927 + $70,885
= $76,812
Example E — Industrial Expansion (Industrial → Industrial):

Existing Building: 20,000 SF
Proposed Building: 25,000 SF
Rate: $1.179/SF
Existing Credit = 20,000 × $1.179 = $23,580
Proposed Fee = 25,000 × $1.179 = $29,475
Net New DIF = (25,000 − 20,000) × $1.179
= 5,000 × $1.179
= $5,895
130

Submittal Requirements
To apply the net new fee method consistently, applicants must provide the following at the time of building permit or fee calculation:
• Site plan and floor area summary showing existing and proposed building areas by land use category.
• Documentation of prior legal use (e.g., building permits, certificates of occupancy, assessor records, or utility records) sufficient for the City to verify the existing credit. • Identification of any phased demolition or additions so that existing credits can be applied proportionally.
• Completed calculation worksheet or City-approved form demonstrating the net new fee computation.

Administrative Notes
• Negative results (Proposed DIF − Existing DIF < 0) yield a $0 net new fee. • Totals are rounded to the nearest whole dollar for billing and collection; intermediate calculations maintain full precision in the City’s model. • Updated rates apply if the City’s adopted Development Impact Fee schedule changes before permit issuance; the applicable schedule is the one in effect at the time the fee obligation is fixed.
• Separate utility or district connection fees, where applicable, follow their own schedules but use the same net new principle for redevelopment and expansions unless superseded by specific district policy or agreement.
131

APPENDIX F

ACCESSORY DWELLING UNIT (ADU) IMPACT FEE

APPLICATION
132

Appendix F: Accessory Dwelling Unit (ADU) Impact Fee Application Purpose & Legal Framework
This appendix explains how the City of Grand Terrace applies Development Impact Fees (DIFs) to Accessory Dwelling Units (ADUs). State law (Government Code §65852.2(f)(3)(A)) prohibits DIFs on ADUs smaller than 750 square feet. For ADUs 750 square feet or larger, DIFs must be proportional to the size of the primary dwelling. Grand Terrace uses a per‑square‑foot DIF structure, which directly satisfies proportionality requirements under §65852.2 and the Mitigation Fee Act (Government Code §§66000–66025).

Proportionality Requirement Under State Law
Government Code §65852.2(f)(3)(A) establishes two mandatory rules: (1) ADUs under 750 square feet are exempt from all impact fees; and (2) ADUs 750 square feet or larger may be assessed impact fees only if those fees are imposed proportionately relative to the square footage of the primary dwelling unit. This proportionality requirement protects smaller ADUs from disproportionate fee burdens and ensures that larger ADUs are charged only for the impacts they actually create.

Two calculation methods satisfy this requirement. The first is the statutory proportionality formula: ADU Fee = (ADU SF ÷ Primary SF) × Primary Fee. This guarantees that the ADU is never charged more per square foot than the primary residence. The second method, used by the City of Grand Terrace, is the per‑square‑foot DIF method. When both the primary dwelling and the ADU are charged the same Single‑Family Residential rate per square foot, proportionality is achieved automatically. This is because ADU SF × Rate = (ADU SF ÷ Primary SF) × (Primary SF × Rate). Thus, both approaches yield identical results and fully comply with §65852.2 and AB‑602.

ADU Fee Structure in Grand Terrace
Grand Terrace applies residential DIFs on a per‑square‑foot basis across all residential development types, including ADUs where applicable. The Street Improvement DIF program is used as the demonstration program for this appendix.

Street Improvement Single‑Family Residential Rate: $0.01462 per square foot.

Rules for Applying DIFs to ADUs
ADUs under 750 square feet are exempt from DIFs.

ADUs 750 square feet or larger may be charged DIFs at the adopted Single-Family Detached $/SF rate.

Because the City’s DIF is assessed per residential square foot, charging the adopted $/SF rate on the ADU’s square footage satisfies the statutory proportionality requirement relative to the primary dwelling.
133

Fees are calculated only on the ADU’s square footage.

Net-new credits apply if the ADU replaces existing legal floor area.

Totals are rounded to whole dollars for billing; internal calculations maintain full precision.

Examples (Using Adopted Single-Family Detached Rate of $8.643/SF) Example 1 — 700 SF ADU (Exempt): Under 750 SF → No DIF may be charged.

Example 2 — 850 SF ADU: 850 × $8.643 = $7,346.55 → $7,347 Example 3 — 1,100 SF ADU: 1,100 × $8.643 = $9,507.30 → $9,507 Submittal Requirements
Scaled floor plan identifying ADU square footage.

Primary dwelling square footage for proportionality verification.

Documentation of any demolished or replaced floor area (for net-new calculations).

Completed City DIF calculation worksheet showing ADU fee computation. 134

APPENDIX G

PUBLIC SAFETY BUILDING MODEL
135

Appendix G: Public Safety Building Model for Sheriffs Station Model Project Used: 2,240 SF Police Station
Target Total Cost Basis: $530 per SF (No Land)
Total Building Cost: 2,240 SF × $530 = $1,187,200
Cost Breakdown (Per Station):

Component Basis Cost per SF Amount ($)
Site Work 2,240 SF × $30 $30 $67,200
Police Station
Building 2,240 SF × $275 $275 $616,000
Direct Construction
Subtotal Site Work + Building $305 $683,200
General Conditions
(12 months)
≈8% of Direct
Subtotal $25 $56,000
Construction
Contingency
≈20% of Direct
Subtotal $60 $134,400
Escalation to
Midpoint of
Construction
≈7.5% of Prior
Subtotal $30 $67,200
Construction
Subtotal (No Soft
Costs)
Direct + GC +
Contingency +
Escalation
$420 $940,800
Estimated Soft Costs
Design/PM, CA, CM,
permitting, testing,
bidding, utilities
$110 $246,400
Total — Station
Construction (No
Land)
2,240 SF × $530 $530 $1,187,200
136

APPENDIX H

PARKS QUALITY OF LIFE INFRASTRUCTURE COST
BASIS
137

Appendix H: Quality of Life Cost Basis
Purpose
This appendix documents the land acquisition and construction cost bases used to develop the City of Grand Terrace’s quality of life development impact fees. It consolidates the inputs for both of the City’s quality of life programs: the Parks Development Impact Fee, which funds parkland acquisition and park improvements, and the Public Use Facilities Development Impact Fee, which funds community centers, public meeting space, and the Library building program.

Parks Cost Basis
Parkland Acquisition Cost Basis
The adopted 2025 planning value for parkland acquisition in Grand Terrace is $1,100,000 per acre. This value is derived from publicly available listings within the Grand Terrace trade area and represents fair‑market pricing suitable for neighborhood and community park sites.

Key comparable listings used for the valuation include:
21911 De Berry St — 4.65 acres listed at $4,608,000 = $990,967.74 per acre 70,001 SF lot (1.606 ac) listed at $1,750,000 = $1,088,984.44 per acre Colton Center St — $2,178,000 per acre (upper‑bound context only) These data points establish a defendable planning band for park‑suitable land between approximately $0.99M and approximately $1.09M per acre. The City adopts a midpoint rounded to $1,100,000 per acre to reflect local conditions, allow for parcel variability, and maintain conservative funding adequacy while excluding industrial and frontage premiums.

Park Improvements (Construction Cost Basis)
The City’s park improvement cost basis is $599,660 per acre. This value reflects the escalated 2005–2006 Grand Terrace park development baseline updated to the study year using the Engineering News‑Record (ENR) Building Cost Index (BCI).

This per‑acre improvement value represents turn‑key construction of park facilities, including turf and hardscape areas, courts and fields, destination playgrounds, lighting, restrooms, support buildings, internal paths, irrigation, and accessibility features. 138

Combined Park Cost Basis
Category Unit Planning Value
Parkland Acquisition $/acre $1,100,000
Park Improvements $/acre $599,660
Combined Park Cost Basis $/acre $1,699,660
Application to the Parks Development Impact Fee
The combined per‑acre cost of $1,699,660 is applied to the additional acreage required to maintain the City’s adopted level of service of 1.552 acres per 1,000 residents. Using the net‑new population forecast of 20,293 residents, the required new park capacity is 31.495 acres. This required acreage is priced using the unit cost basis documented above.

Public Use Facilities Cost Basis (Community Centers and Library Building Space) Construction Cost Basis
The Public Use Facilities program prices building construction on a per‑square‑foot basis using a study‑year planning value of $450 per building square foot. The City’s prior public building construction basis from the 2005–2006 Grand Terrace Development Impact Fee Nexus Study was $250 per square foot. This historical basis is escalated to 2025 using the Engineering News‑Record (ENR) Building Cost Index (BCI): ENR BCI 2025 (13,914) divided by ENR BCI 2005–2006 (7,722) yields an escalation factor of 1.802, which applied to the $250 per square foot basis produces a 2025 planning value of $450 per square foot (rounded).

This $450 per square foot planning value reflects full building construction costs for multi‑purpose community center facilities, including core building systems, interior build‑out, and code‑triggered improvements necessary to place Public Use space into service.

Land Cost Basis
Public Use land is priced on a per‑building‑square‑foot basis using an underlying civic‑appropriate land value of $1,235,565 per acre at an assumed floor area ratio (FAR) of

0.33. This converts to a land cost of $85.95 per building square foot. Applied to the existing 36,575 square feet of Public Use Facilities inventory, this yields an estimated land value of $3,143,621 (36,575 square feet times $85.95 per square foot).

The City developed this basis from local market evidence suitable for civic and assembly use within the Grand Terrace trade area, consistent with the land research used for the parkland acquisition basis.

Combined Public Use Facilities Cost Basis
For planning and fee‑calculation purposes, the combined Public Use Facilities cost basis per building square foot is: $450.00 per building square foot for construction plus $85.95 per building square foot for land, for a combined construction and land cost of $535.95 per building square foot.
139

Application to the Public Use Facilities Development Impact Fee The Public Use Facilities program maintains the City’s existing service standard of 2.799 square feet per resident, derived from the documented inventory of 36,575 square feet and the current resident population of 13,069. The net‑new growth population of 20,293 residents, multiplied by the 2.799 square feet per resident standard, yields 56,801 square feet of required new Public Use space. This required building area is priced using the construction and land unit costs documented above, and the resulting per‑person and per‑residential‑square‑foot costs are allocated by housing type to produce the Public Use Facilities fee schedule presented in the main report.

Summary
Grand Terrace’s quality of life development impact fees use study‑year planning values derived from local market land data and escalated public facility construction costs. For Parks, the combined parkland and improvement cost basis is $1,699,660 per acre, applied to the additional acreage needed to maintain the City’s adopted park service standard. For Public Use Facilities, the combined construction and land cost basis is $535.95 per building square foot, applied to the additional 56,800 square feet of building space required to serve growth at the existing 2.799 square feet per resident standard. All inputs are consistent with AB‑602 transparency requirements and the Mitigation Fee Act’s reasonable‑relationship standard, ensuring that new residential development pays only its fair, proportional share of the capital improvements necessary to maintain Grand Terrace’s quality of life as growth occurs.
140

APPENDIX I

DEVELOPMENT IMPACT FEE CAPITAL IMPROVEMENT
PLAN
141

Appendix I: Capital Improvement Plan (CIP) Introduction Purpose and Scope:

This appendix presents the Capital Improvement Plan (CIP) that supports the City of Grand Terrace’s Development Impact Fee (DIF) program. It compiles the growth-related capital projects necessary to maintain the City’s established levels of service (LOS) as development occurs. The CIP includes only capital projects that add system capacity—such as facilities, equipment, and infrastructure improvements that directly serve new residents and development.

The CIP excludes operations and maintenance, repair and replacement, and any remediation of existing deficiencies. Each project is presented with its Total Cost, the percentage of that cost attributable to new development, and the resulting Cost to New Development. This structure provides a transparent, auditable basis for calculating maximum justified DIFs under the Mitigation Fee Act and AB-602.

Legal Authority and AB-602 Compliance:

The Mitigation Fee Act (Government Code §66000 et seq.) requires an essential nexus between new development and the need for capital improvements, and proportionality between the fee amount and the share of costs attributable to new development. Public noticing, segregated accounting, and periodic reporting are also required.

Assembly Bill 602 (AB-602) requires residential impact fees to be expressed on a per-squarefoot basis, a documented existing level of service (LOS) for each fee program, and a Capital Improvement Plan (CIP) adopted as part of the nexus study. This appendix satisfies these requirements by identifying the capacity-adding projects for each program and allocating only the growth share of costs to new development.

How This Appendix Satisfies the Law:

Each project includes a justification describing how the improvement maintains LOS for a larger future service population. Only the growth-related share of each project’s cost is assigned to DIFs. Eligible capital uses include land, design, engineering, environmental review, permitting, construction, contingency, and capital-eligible equipment. Existing deficiencies and ongoing O&M are not funded with DIFs. Project tables clearly show Total Cost, Percent to New Development, Cost to New Development, and Estimated Time of Availability, ensuring a fully auditable chain into fee calculations.

Programs Included in This CIP:
• Law Enforcement Facilities
• Fire Facilities
• Local Street Improvements
142

• Regional Circulation
• General City Facilities
• Public Use / Community Centers
• Parks Development
Each program’s CIP table contains: Project Number, Project Title, Department/Category, Location/Scope, Total Cost, Percent of Cost Attributable to New Development, Cost to New Development, and Estimated Availability Window. A brief Description and Justification/Need accompany each project.

How to Read the Tables:

The CIP tables link individual project data to final fee schedule calculations. For each project, Total Cost reflects full capitalized cost; Percent to New Development reflects the portion required to maintain LOS; Cost to New Development forms the fee-eligible contribution; and Estimated Availability shows timing of improvements needed to serve growth. This ensures clear traceability from projects to maximum justified fees.

Summary:

This CIP provides the growth-related capital framework required under the Mitigation Fee Act and AB-602. It identifies improvements necessary to maintain Grand Terrace’s LOS standards and assigns only the growth share of cost to new development. The resulting CIP tables form the foundation for calculating maximum justified Development Impact Fees. 143

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability LE-001 Sheriff Station Space
Expansion
Law
Enforcement
Law
Enforcement
Facilities
Sheriff Station 2,611 SF $1,383,830 100% $1,383,830 2036 Narrative Project Details
Project Number LE-001
Brief Description This project expands City-owned law enforcement building space to accommodate the growth-related calls-for-service generated by new development in Grand Terrace. The scope includes planning, design, permitting, and construction or reconfiguration of interior space within City Hall or another City-owned facility to increase the area dedicated to law enforcement functions.

Justification/Need This project is necessary to provide the additional 2,611 square feet of law enforcement building capacity required to accommodate growth-related increases in calls-for-service and maintain the City’s established level of service as new development occurs.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Law Enforcement Facilities
144

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability FD-001 New Fire Station
San Bernardino
County Fire
Protection
District (serving
Grand Terrace)
Fire Facilities
Within Grand
Terrace, in
coordination with
County Fire
Approximately
5,000–6,000
square feet
(comparable to
existing station)
$9,484,017 100% $9,484,017.00 2036
FD-002 New Fire Engine
San Bernardino
County Fire
Protection
District (serving
Grand Terrace)
Fire Facilities
Assigned to the new
fire station serving
growth in the City of
Grand Terrace
One fully
equipped fire
engine
$1,200,000 100% $1,200,000.00 2036
FD-003
New Specialty
Firefighting and LifeSafety Equipment
San Bernardino
County Fire
Protection
District (serving
Grand Terrace)
Fire Facilities
Assigned to the new
fire station serving
growth in the City of
Grand Terrace.

Specialty
firefighting and
life-safety
equipment.
$142,197 100% $142,197.00 2036
Narrative Project Details
Project Number FD-001
Brief Description
Construct a new fire station to add facility capacity necessary to maintain the established level of fire protection service as new development increases calls-for-service.

Justification/Need Planned development is projected to generate 1,838 additional calls-for-service. To maintain the current level of service and avoid degradation of emergency response capability, one additional fire station is required. The project will be planned and delivered in coordination with the San Bernardino County Fire Protection District and adds capacity attributable solely to new development; it does not address existing deficiencies.

Project Number FD-002
Brief Description Acquisition of one additional fully equipped fire engine to provide response capacity necessary to maintain the established level of fire protection service as new development increases calls-for-service within the City of Grand Terrace.

Justification/Need Projected development is expected to generate 1,838 additional calls-for-service. An additional fire engine is required to provide apparatus capacity sufficient to serve growth-related demand without degrading emergency response capability for the existing community. This project adds new apparatus capacity attributable to growth and does not fund staffing, operations, or replacement of existing vehicles.

Project Number FD-003
Brief Description
Acquisition of specialty firefighting and life-safety equipment necessary to support additional fire protection capacity required to serve new development within the City of Grand Terrace.

Justification/Need Projected development is expected to generate 1,838 additional calls-for-service, requiring additional specialty equipment to maintain the established level of emergency response service. This project provides growth-related equipment capacity associated with the new fire station and assigned apparatus and does not fund staffing, operations, or replacement of existing equipment.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Fire Facilities
145

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability ST-001 Circulation Master Plan Public Works
Local Street
Improvements Citywide
Citywide
planning
document
$2,500,000 50% $1,250,000 2036
ST-002
Main Street Corridor
Signalization & Railroad
Crossing Improvements
Public Works
Local Street
Improvements
Main Street Corridor
Traffic signal and
intersection
upgrades along
the Main Street
corridor.
$4,500,000 40% $1,800,000 2032
ST-003 Commerce Way Extension to
Taylor Street
Public Works
Local Street
Improvements
Commerce Way to
Taylor Street
Approximately

1.25 miles of new
roadway
construction.
$3,200,000 70% $2,240,000 2032
ST-004
Mt. Vernon Street Slope
Stabilization & Roadway
Improvements
Public Works
Local Street
Improvements
Mt. Vernon Street,
northern City
boundary adjacent
to the City of Colton
Approximately

0.5 miles of slope
stabilization and
roadway
improvements.
$4,200,000 30% $1,260,000 2031
Narrative Project Details
Project Number ST-001
Brief Description Prepare a comprehensive Circulation Master Plan to evaluate existing transportation network conditions and identify growth-related capacity needs.

Justification/Need Projected development will increase travel demand citywide. A Circulation Master Plan is required to identify and size growth-related roadway and intersection improvements and to establish the capital program framework necessary to accommodate development.

Project Number ST-002
Brief Description
Install new traffic signals and modernize existing signal infrastructure along the Main Street corridor, including railroad crossing coordination and associated intersection improvements.

Justification/Need Projected development will increase trip generation and intersection demand along the Main Street corridor. Signalization and operational upgrades are required to maintain roadway capacity, improve traffic flow, and preserve safe multimodal circulation as growth occurs. The project adds capacity and operational improvements attributable to development and does not address unrelated deficiencies.

Project Number ST-003
Brief Description Construct a new roadway connection extending Commerce Way to Taylor Street to eliminate the existing dead-end condition and improve network connectivity.

Justification/Need
Projected development will increase trip demand and require improved circulation connectivity within the City. Extending Commerce Way to Taylor Street provides additional roadway capacity, enhances access to developable areas, and supports orderly growth consistent with the General Plan. The project adds capacity attributable to new development.

Project Number ST-004
Brief Description Slope stabilization and roadway improvements along Mt. Vernon Street to maintain safe and reliable circulation. Work includes retaining structures, drainage improvements, pavement rehabilitation, guardrails, and related safety enhancements.

Justification/Need Projected development will increase travel demand on the City’s circulation system. Stabilization and safety improvements on Mt. Vernon Street are required to maintain reliable corridor function and protect roadway capacity as growth increases use of the network. The project’s improvements support continued safe access and circulation and are proportionally allocated between existing and new development.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Local Street Improvements
146

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability ST-005
Michigan Street
Widening & Arterial
Upgrade
Public Works
Street
Improvements
Michigan Street
corridor
Widening and
reconstruction of
approximately
1,500 meters
(4,920 linear
feet) of Michigan
Street to
secondary
arterial
standards.
$12,750,000 45% $5,737,500.00 2032
Narrative Project Details
Project Number ST-001
Brief Description Widening and reconstruction of Michigan Street to secondary arterial standards. Improvements include additional travel lanes, curb, gutter, sidewalks, drainage, pavement rehabilitation, signage, and lighting to increase capacity, improve safety, and enhance connectivity within the City’s circulation system.

Justification/Need Projected development will increase trip generation and corridor demand along Michigan Street. Widening to secondary arterial standards is required to provide additional roadway capacity, maintain safe and efficient circulation, and accommodate growth consistent with the City’s General Plan. The project adds capacity attributable to new development and is proportionally allocated between existing and future users.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Street Improvements
147

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability RS-001
Main Street Metrolink
Station and Rail
Connection
Public Works Regional
Circulation
Former power plant
site on Taylor Street
Construction of
one commuter
rail station with
associated
access and
connectivity
improvements.
$38,000,000 50% $19,000,000.00 2035
Narrative Project Details
Project Number RS-001
Brief Description

parking and drop-off areas, and pedestrian and bicycle connections to Main Street. The project includes required planning, design, utility coordination, and integration with the regional rail network.

Justification/Need Projected development will increase regional travel demand and require expanded multimodal connectivity within the City. Establishment of a commuter rail station supports growth by providing regional access, reducing roadway demand, and enhancing circulation options consistent with the City’s transportation and land use planning framework. The project is proportionally allocated between new development and existing/regional beneficiaries.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Regional Circulation
148

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability GG-001 City Hall
Expansion/Modernization
City
Administration/
City Manager's
Office
General City
Facilities City Hall TBD $5,356,034 49% $2,627,876 2036 GG-002 General City Vehicle
Expansion
City
Administration/
City Manager's
Office
General City
Facilities Citywide TBD $193,676 49% $95,025 2036
GG-003 City Yard Expansion
City
Administration/
City Manager's
Office
General City
Facilities City Yard Facilities
TBD
$870,758 49% $427,227 2036
GG-004 General City Equipment
Expansion
City
Administration/
City Manager's
Office
General City
Facilities
City Hall, City Yard,
and other general
city administrative
and operational
facilities
TBD $267,802 49% $131,394 2036
Narrative Project Details
Project Number GG-001
Brief Description Remodel and expand City Hall to increase administrative and customer-service capacity, including reconfigured office and meeting areas, upgraded technology systems, improved public counters, and modernization of core building systems needed to support a larger service population.

Justification/Need This project is necessary to provide sufficient General City Facilities capacity to serve growth and maintain the City’s established level of service, ensuring that administrative, permitting, financial, and public-facing functions can continue operating effectively as Grand Terrace’s population and service demands increase.

Project Number GG-002
Brief Description Acquisition of additional general-purpose administrative and support vehicles to serve citywide inspections, site visits, interdepartmental travel, and operational support as Grand Terrace’s service population grows.

Justification/Need This project is needed to expand the City’s general vehicle fleet in proportion to growth so that General City Facilities services can maintain the City’s established level of service, with the growthrelated share funded through the General City Facilities impact fee program.

Project Number GG-003
Brief Description Expansion of City Yard facilities to provide additional storage, staging, and operational space to support public works and general government field activities as Grand Terrace’s service population grows.

Justification/Need This project is necessary to increase City Yard capacity in proportion to service population growth so that inspections, maintenance, materials storage, and other field operations can maintain the City’s established level of service as new development adds residents and employment.

Project Number GG-004
Brief Description Acquisition of additional general city equipment—including shared furnishings, fixtures, information technology, communications hardware, and operational equipment—to support expanded administrative and field capacity as Grand Terrace’s service population grows.

Justification/Need This project is needed to provide the additional equipment required to place expanded City Hall and City Yard capacity into service and to maintain the City’s established level of administrative and operational service as new development increases staffing and workload.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
General City Facilities
149

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability PF-001 Public Use Space
Expansion
Parks and
Recreation
Public Use
Facilities
TBD 52,989 SF $28,399,531 100% $28,399,531.00 2036
Narrative Project Details
Project Number PF-001
Brief Description Construction and expansion of Public Use building space, including planning, design, permitting, construction, interior build-out, and related on-site improvements, to add 52,989 square feet of multi-purpose community facility capacity for Grand Terrace residents.

Justification/Need This project is necessary to provide 52,989 square feet of additional Public Use building capacity identified in the growth analysis so the City can maintain its established service standard of 2.799 square feet per resident as new development increases the service population.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Public Use Facilities
150

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability PK-001
Parkland Acquisition &
Facilities Improvements –
Citywide Program
Parks and
Recreation
Parkland
Acquistion and
Park Facilities
Citywide 29.38 Acres $49,938,461 100% $49,938,461 2036
Narrative Project Details
Project Number PK-001
Brief Description
Citywide program to acquire approximately 29.38 acres of new parkland and construct capacity-adding park improvements—including new or expanded fields, courts, multi-purpose turf and hardscape areas, playgrounds, restrooms and support buildings, lighting, paths and trailheads, irrigation, and accessibility features—to serve a growing community.

Justification/Need This program is necessary to provide growth-related parkland and facility capacity so the City can maintain its adopted parks level of service as new residential and nonresidential development increases the service population.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Parkland Acquistion and Park Facilities
151

APPENDIX J

DEVELOPMENT FEASIBILITY ANALYSIS
152

Appendix J: Development Feasibility Analysis
Purpose and Scope
This appendix evaluates the financial feasibility implications of the City of Grand Terrace’s Development Impact Fee (DIF) program. Assembly Bill 602 (AB-602) requires local agencies to consider the relationship between residential impact fees and the cost of housing construction. Although AB-602 focuses on residential development, best practice and recent case law support evaluating commercial feasibility as well. This appendix therefore examines residential and nonresidential development prototypes commonly built in the Inland Empire and evaluates whether the proposed DIF schedule would materially affect development feasibility.

The analysis uses a prototype-based feasibility framework consistent with industry practice and RCS standards. It incorporates market rents, vacancy and operating expense assumptions, construction cost benchmarks, land cost expectations, and financing parameters to estimate return-on-cost (ROC). The appendix compares feasibility outcomes with and without the adopted DIF levels to determine whether the fees represent a binding constraint on new development in Grand Terrace.

Regulatory Context
The Mitigation Fee Act (Government Code §66000 et seq.) requires that development impact fees be reasonably related to the need for public facilities created by new development and be proportionate to the cost of the infrastructure attributable to that development. Agencies must also demonstrate that fee adoption will not be confiscatory and will not impede development to such an extent that fees lose their rational nexus to facility demand.

Assembly Bill 602 (AB-602) requires nexus studies to clearly document how residential fees relate to housing feasibility. While the statute centers on residential affordability, it does not prohibit feasibility evaluations for nonresidential uses; in fact, many jurisdictions now conduct such analyses to maintain defensibility and avoid claims that fees materially suppress commercial investment.

This appendix fulfills these expectations by providing a transparent evaluation of how the proposed fee levels interact with typical project economics across all major land uses in Grand Terrace.

Methodology Overview
The feasibility analysis relies on a standardized return-on-cost (ROC) approach, which compares annual net operating income (NOI) to total development cost. Prototypes were selected to reflect typical product types in the Inland Empire market:
• Single-Family Detached (SFD) residential;
• Multi-Family Attached (MF) garden-style residential;
• General Commercial (Retail);
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• Office / Medical Office;
• Industrial / Warehouse.

Key inputs include market rents derived from published Inland Empire datasets, construction cost ranges reflecting RSMeans 2025 benchmarks calibrated to Inland Empire conditions, operating assumptions including vacancy and expense ratios, and total development cost per square foot inclusive of the applicable DIF. ROC is computed for each prototype under two conditions: (1) with DIFs included in total development cost and (2) without DIFs, removing only the fee component. This isolates the incremental impact of DIFs on feasibility while holding all other variables constant.

Development Prototypes and Market Inputs
Residential Prototypes:

Single-Family Detached (SFD): A representative new SFD home in Grand Terrace is modeled at 1,916 square feet, consistent with the adopted Average Residential Unit Size (ARUS). Based on recent Grand Terrace housing trends and regional comparables, a realistic newconstruction price assumption is approximately $390 per square foot, or roughly $747,000 per home.

Multi-Family (MF): Garden-style apartment prototypes reflect unit sizes of approximately 850 square feet, aligning with local projects such as The Heights and The Highlands at Grand Terrace. Market rents for modern Inland Empire apartments indicate a central rent anchor of approximately $2.60 per square foot per month, yielding annual effective NOI of approximately $19.27 per square foot after vacancy and operating costs.

Nonresidential Prototypes:

Retail: Neighborhood-serving retail in the Inland Empire rents for approximately $1.72 per square foot per month. A 10,000-square-foot retail shell building is used as the prototype.

Office: Small-scale office and medical office spaces in the Inland Empire typically achieve approximately $2.15 per square foot per month on a full-service basis. A 10,000-square-foot office prototype is used for testing.

Industrial: Modern tilt-up industrial buildings in the region achieve approximately $1.45 per square foot per month. A 50,000-square-foot warehouse prototype is selected to match market norms.

Development Cost Assumptions
Construction cost ranges were selected to align with RSMeans 2025 benchmarks for the Inland Empire. These ranges include hard costs, soft costs, land, professional fees, and contingency, and are applied to each prototype as follows:
154

• Retail: $275–$375 per square foot;
• Office / Medical Office: $300–$450 per square foot;
• Industrial tilt-up warehouse: $125–$200 per square foot; • Garden-style multi-family: $250–$325 per square foot.

Single-family feasibility is assessed primarily relative to sale price rather than ROC because SFD projects are typically financed and evaluated on a for-sale basis. For SFD, the analysis focuses on the share of total home value represented by DIFs and the approximate impact on a conventional 30-year mortgage.

Fee Load and Cost Impact
Using the adopted Grand Terrace DIF schedule, the analysis calculates total fee loads per unit for residential prototypes and per square foot for nonresidential prototypes. These fee loads are compared to total development costs and sale prices.

Residential Fee Loads:

For Single-Family Detached, the DIF rate is approximately $6.71 per square foot. Applying this rate to the 1,916-square-foot ARUS yields a total DIF load of approximately $12,852 per new SFD home. At a $747,000 home value, this equates to roughly 1.7% of the home price and adds about $85 per month to a 30-year mortgage at 7% interest.

For Multi-Family, the DIF rate is approximately $14.78 per square foot. Applied to an 850- square-foot unit, this results in a total DIF of approximately $12,567 per unit. Across typical MF development cost ranges ($250–$325 per square foot), this fee represents roughly 4.5%– 6% of total development cost.

Nonresidential Fee Loads:

For a 10,000-square-foot General Commercial (retail) prototype, the combined DIF burden is approximately $0.40 per square foot, or $3,974 per building. Across total development cost ranges of $275–$375 per square foot, this represents approximately 0.11%–0.14% of total development cost.

For a 10,000-square-foot Office prototype, the DIF rate of approximately $0.28 per square foot results in a total fee burden of about $2,796 per building. This represents roughly 0.06%–

0.09% of total development cost across the $300–$450 per square foot range.

For a 50,000-square-foot Industrial prototype, the DIF rate of approximately $0.23 per square foot results in a total fee burden of about $11,620 per building. This represents approximately 0.12%–0.19% of total development cost across the $125–$200 per square foot range.

Feasibility Results: Return-on-Cost (ROC)
Return-on-cost (ROC) is calculated as annual net operating income divided by total development cost. The feasibility analysis compares ROC outcomes with DIFs included in 155

total development cost and with DIFs removed, in order to isolate the incremental effect of fees.

Single-Family Detached:

For SFD, DIFs are evaluated as a share of total home value and as an incremental mortgage cost. With a total fee load of approximately $12,852 per home, DIFs account for roughly 1.7% of a $747,000 home and do not constitute a binding constraint on new home construction.

Multi-Family Residential:

For the multi-family prototype, annual NOI per square foot is derived from market rents of approximately $2.60 per square foot per month, a 5% vacancy allowance, and operating expenses of about 35% of effective gross income. Across development cost ranges of $250– $325 per square foot, ROC remains within commonly acceptable Inland Empire underwriting thresholds even with DIFs included. Removing DIFs increases ROC by approximately 0.3–0.5 percentage points, indicating that construction costs, financing conditions, and land pricing— not DIFs—are the primary feasibility drivers.

Retail, Office, and Industrial:

For retail, office, and industrial prototypes, the DIF share of total development cost is well below 1%, and the effect on ROC is negligible. For neighborhood retail, the change in ROC from removing DIFs is less than 0.01 percentage points. For office, ROC changes by roughly

0.005 percentage points. For industrial, ROC changes by less than 0.02 percentage points. In each case, project feasibility is overwhelmingly driven by rents, land values, and construction costs rather than by the DIF schedule.

Findings and Conclusions
The feasibility testing conducted across all major land uses demonstrates that the proposed Development Impact Fee schedule in Grand Terrace does not create feasibility barriers for new development.
• Residential DIFs are modest relative to total project costs. For SFD, fees equal approximately 1.7% of a new home price. For MF, fees represent approximately 4.5%– 6% of total development cost.
• ROC impacts are minimal across all prototypes. Multi-family ROC reduction is less than

0.5 percentage points; commercial ROC reductions are less than 0.02 percentage points. • Commercial fee burdens are low relative to total development cost. Across retail, office, and industrial prototypes, DIFs consistently comprise less than 0.2% of total development cost.
• Primary feasibility drivers are external to DIFs. Construction costs, land pricing, and financing terms exert far more influence on development viability than the adopted DIF schedule.
156

• The DIF program complies with AB-602 and the Mitigation Fee Act. The fees maintain proportionality, remain modest relative to development economics, and do not inhibit feasible project delivery in Grand Terrace.

Based on this analysis, the proposed maximum justified Development Impact Fees are not a binding constraint on new development in Grand Terrace. They remain consistent with AB602, the Mitigation Fee Act, and widely accepted feasibility standards.

Market Data Sources and Assumptions
This section documents the market data sources and supporting references used to develop the Development Feasibility Analysis. The information below summarizes publicly available sources that inform revenue assumptions, construction cost ranges, operating cost estimates, and rental and pricing benchmarks for the development prototypes evaluated in this appendix.

Residential Market Data Sources:
• Redfin – Grand Terrace median sale price trends, price per square foot, and recent transaction summaries.
• Zillow – Local home value index, recent sale listings, and price per square foot indicators. • Realtor.com – Listing prices, price per square foot, and 92313-submarket housing statistics.
• ATTOM Data Solutions – City-level home price and sales activity summaries. • ApartmentHomeLiving – Published rent ranges and unit sizes for local multi-family properties.
• Rent.com – Market listings supporting multi-family rent confirmation.

These sources were used to establish typical unit sizes and realistic modern market rents for new or recently built multi-family projects, as well as representative sale price assumptions for new single-family homes in Grand Terrace.

Commercial and Industrial Market Data Sources:
• Kidder Mathews – Inland Empire Retail, Office, and Industrial market reports. • Cushman & Wakefield – Inland Empire MarketBeat reports for Office and Industrial. • CommercialEdge – Regional industrial and multi-family rent analytics. • NAI and similar brokerage reports – Southern California industrial and logistics market conditions.
• Local retail and office listings in the Grand Terrace / Colton / Loma Linda trade areas.

These reports support modeled rental rates of approximately $1.72 per square foot per month for retail, approximately $2.15 per square foot per month for office, and approximately $1.45 per square foot per month for industrial space, consistent with Inland Empire market conditions.
157

Construction Cost Data Sources:

Construction cost assumptions were derived from RSMeans 2025 category benchmarks and adjusted for Inland Empire regional cost factors. While proprietary RSMeans values are not reproduced directly, the feasibility model reflects cost ranges consistent with Inland Empire market construction pricing, including the ranges listed in Section 5 of this appendix.

Operating and Financial Assumptions:
• Vacancy rate: generally 5% across residential and commercial prototypes. • Operating expense ratios: approximately 35% for retail and office, and approximately 25% for industrial.
• Return-on-cost thresholds: consistent with Inland Empire underwriting standards for each product type.
• Financing parameters: industry-standard loan-to-cost ratios, interest assumptions, and capitalization rates.

All market assumptions used in this feasibility analysis are derived from publicly available, industry-standard sources. Detailed workpapers, internal calculation files, and underlying market data excerpts may be made available to the City for audit or validation purposes.

These sources collectively provide a transparent, objective foundation for the feasibility modeling in this appendix.
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End of Report
159

Land Use Cost Basis
Law Enforcement
Facilities
Fire Facilities
Local Street
Improvements Regional Circulation General City Facilties Public Use
Facilties
Parkland
Acquisition and
Park Facilities
Single Family Detached Per Square Foot $0.058 $0.831 $0.378 $0.362 $0.321 $2.426 $4.267 Multi-Family Attached Per Square Foot $0.155 $1.365 $0.359 $0.344 $0.132 $4.286 $7.537 Manufactured/Mobile Homes Per Square Foot $0.069 $1.492 $0.285 $0.273 $0.248 $3.764 $6.618 General Commercial Per Square Foot $0.154 $0.388 $2.685 $2.572 $0.128 - - Office Commercial Per Square Foot $0.109 $0.509 $0.806 $0.772 $0.128 - - Industrial Per Square Foot $0.052 $0.101 $0.447 $0.429 $0.150 - - Land Use DIF Total
Single Family Detached $8.643 Single-Family Residential $8.247 Per SF Multi-Family Attached $14.177 Multiple-Family Residential $14.569 Per SF Manufactured/Mobile Homes $12.749 Mobile Home Dwelling Units $12.793 Per SF General Commercial $5.927 For reference only: Applies to residential subdivisions subject to the City’s Quimby Office Commercial $2.323 ordinance. Administered under the Subdivision Map Act; land dedication and/or Industrial $1.179 in lieu is credited first to avoid double counting with Parks DIF. Not a development impact fee (not included in Total DIF).

City of Grand Terrace Development Impact Fee Master Fee Schedule Subdivision Park Requirement (Quimby Act)

AGENDA REPORT
MEETING DATE: March 24, 2026
TITLE: Purchase of Additional Video Surveillance Cameras in the Public Right-OfWay PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: APPROVE PURCHASE ORDER FOR $87,600 WITH FLOCK SAFETY FOR THE PURCHASE, INSTALLATION, AND SUBSCRIPTION OF 12

ADDITIONAL OF VIDEO SURVEILLANCE CAMERAS IN THE PUBLIC

RIGHT-OF-WAY
2030 VISION STATEMENT:

This staff report supports Goal #2, Maintain Public Safety, by investing in Critical Improvements to Infrastructure.

BACKGROUND:

On October 27, 2015, the Council approved resources to enhance public safety services in our community. The implementation of a comprehensive video surveillance system in Grand Terrace was authorized. The Council and community have advocated for enhanced public safety measures, including the adoption of surveillance cameras.

On March 8, 2016, the Council allocated funding for video surveillance infrastructure. This included allocating $48,562 to Security Lines USA for installing Video Surveillance Cameras in the public rightof-way and $5,124.60 for upgrading park cameras in Richard Rollins and Pico Park.

On April 23, 2024, the City Council approved resources for twelve (12) Flock Cameras to be placed in the right-of-way to enhance public safety.

The City has consistently had some level of video surveillance since 2015.

DISCUSSION:

The decision to adopt additional Flock Safety Falcon cameras from Flock Safety aligns with the City's ongoing commitment to improving public safety and surveillance capabilities. These 12 cameras are equipped with features such as facial recognition and license plate recognition technology, which can significantly assist law enforcement in tracking and identifying vehicles associated with criminal activities. The placement of the cameras is being determined by the crime statistics reporting division of the Sheriff Intelligence Bureau. The placements will collaborate with neighboring jurisdictions that adopted the same camera system, allowing the Sheriff's Department to share and track criminal activity across jurisdictional borders. Data is accessible through law enforcement channels providing its safety and security. Extended data retention capabilities ensure the secure storage of crucial information for 365 days, facilitating future reference and analysis.

By investing in Flock cameras, the City of Grand Terrace demonstrates its dedication to leveraging

technological advancements to strengthen public safety initiatives. The deployment of these cameras is expected to enhance surveillance capabilities, deter criminal activities, and provide valuable support to law enforcement agencies in safeguarding the welfare and security of residents.

ENVIRONMENTAL IMPACT:

This action does not meet the threshold of a project under CEQA and is exempt.

FISCAL IMPACT:

First year installation and operations costs are $45,600. Subsequent years recurring costs are $42,000. This agreement is for 24 months. Funds will be allocated from the General Fund Account #10-410-701-000-000, Law Enforcement Equipment. We are using the additional mid-year expenditure funds for this purchase.

Flock Safety + CA-The City of Grand
Terrace
______________
Flock Group Inc.
1170 Howell Mill Rd, Suite 210
Atlanta, GA 30318
______________
MAIN CONTACT:

Kelly Bluth
[email protected]
(702) 401-1735
Quote Number: Q-179603
Expiration Date: 05/29/2026

ORDER FORM
This order form (“Order Form”) hereby incorporates and includes the terms of the previously executed agreement (the “Terms”) which describe and set forth the general legal terms governing the relationship (collectively, the "Agreement" ). The Terms contain, among other things, warranty disclaimers, liability limitations and use limitations.

This additional services Agreement will be effective when this Order Form is executed by both Parties (the “Effective Date”) Customer: CA-The City of Grand Terrace Initial Term: 24 Months Legal Entity Name: CA-The City of Grand Terrace Renewal Term: 12 Months Accounts Payable Email: [email protected] Payment Terms: Net 30 Address: 22795 Barton Road Grand Terrace,
California 92313
Billing Frequency: Annual Plan - First Year Invoiced at Signing.

Retention Period: 30 Days
Hardware and Software Products
Recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $42,000.00
Flock Safety Bundles
Flock Safety Solar Multi-Purpose LPR and Video
Fixed w/ LTE Service Included 12 Included
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Flock Safety Professional Services
Professional Services - Existing Infrastructure
Implementation Fee $150.00 24 $3,600.00
Subtotal Year 1: $45,600.00
Annual Recurring Subtotal: $42,000.00
Estimated Tax: $0.00
Contract Total: $87,600.00
Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

The Term for Flock Hardware shall commence upon first installation and validation, except that the Term for any Flock Hardware that requires selfinstallation shall commence upon execution of the Agreement. In the event a Customer purchases more than one type of Flock Hardware, the earliest Term start date shall control. In the event a Customer purchases software only, the Term shall commence upon execution of the Agre ement.

Billing Schedule
Billing Schedule Amount (USD)
Year 1
At Contract Signing $45,600.00
Annual Recurring after Year 1 $42,000.00
Contract Total $87,600.00
*Tax not included
Discounts
Discounts Applied Amount (USD)
Flock Safety Platform $0.00
Flock Safety Add-ons $0.00
Flock Safety Professional Services $0.00

Product and Services Description
Flock Safety Platform Items Product Description
Flock Safety Solar Multi-Purpose
LPR and Video Fixed w/ LTE
Service
Law enforcement grade bundled standard range license plate recognition camera and live streamed solar powerd fixed camera with 30 days of edge storage, with LTE. VMS included and server free. Installed and maintained by Flock Safety, turn key-no additional software or integrations required. with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users. AC power is also available if needed.

Professional Services - Existing
Infrastructure Implementation Fee
One-time Professional Services engagement. Includes site and safety assessment of existing vertical infrastructure location, camera setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief.

Flock Safety LPR, fka Falcon
Law enforcement grade infrastructure-free (solar power + LTE) license plate recognition camera with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users.

Solar Video Camera Fixed, fka
Condor
Law enforcement grade live streamed Solar powered Fixed camera with 30 days edge storage. VMS included and server free. Installed and maintained by Flock Safety, turn key - no additional software or integrations required.

By executing this Order Form, Customer represents and warrants that it has read and agrees all of the terms and conditions contained in the Terms of Service located at https://www.flocksafety.com/terms-and-conditions.

The Parties have executed this Agreement as of the dates set forth below.

FLOCK GROUP, INC. Customer: CA-The City of Grand Terrace By:
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By:
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Name:
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Title:
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Date:
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Date:
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PO Number:

AGENDA REPORT
MEETING DATE: March 24, 2026
TITLE: Mayor to Appoint a Council Member to Attend the 2026 Annual Meeting of Shareholders of Riverside Highland Water Company
PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: MAYOR TO APPOINT A COUNCIL MEMBER TO ATTEND THE 2026

ANNUAL MEETING OF SHAREHOLDERS OF RIVERSIDE HIGHLAND

WATER COMPANY
2030 VISION STATEMENT:

This staff report supports Goal #4 Develop and Implement Successful Partnerships BACKGROUND:

The City Manager for the City of Grand Terrace serves as the City representative at the Riverside Highland Water Company’s Annual Shareholders Meetings. The City Manager is unable to attend the current meeting scheduled for Thursday, March 26, 2026, at 9:00 a.m. and is requesting that the City Council appoint a Council Member to attend this meeting on behalf of the City.

DISCUSSION:

On Thursday, March 26, 2026, at 9:00 a.m. the Riverside Highland Water Company(RHWC) will be holding its 2026 Annual Meeting of Shareholders at 12374 Michigan Street, Grand Terrace, CA 92313-5602 or via ZOOM by computer or phone. The City’s shareholder representative, Konrad Bolowich, City Manager, is unable to attend and is requesting the Mayor appoint, with the approval of the City Council, a member of Council to attend the meeting. The purpose of the meeting is to review the activities of 2025, elect three Board of Directors members for the ensuing year, and to transact such other business as may properly come before the meeting. RHWC will describe to shareholders the continuing upgrade of the distribution system, new developments for RHWC and the 2026 operating plan.

State law provides under Government Code Section 40605 that, in general law cities where the office of mayor is an elective office pursuant to Article 5 (commencing with Section 34900) of Chapter 7 of Part 1 of Division 2 of Title 4, the mayor, with the approval of the city council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute.

At this time, staff recommends that, subject to the advice and consent of the City Council, the Mayor appoints a member of Council to attend the Riverside Highland Water Company’s 2026 Annual Meeting of Shareholders on Thursday, March 26, 2026, at 9:00 a.m.

ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

None.