Menifee City Council
August 31, 2022

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Bill Zimmerman, Mayor
Bob Karwin, District 1
Matthew Liesemeyer, District 2
Lesa Sobek, District 3
Dean Deines, District 4
SPECIAL AGENDA
Menifee City Council
Special Meeting Agenda
Wednesday, August 31, 2022
9:00 AM Special Meeting
Armando G. Villa, City Manager
Jeffrey T. Melching, City Attorney
Stephanie Roseen, Clerk
SPECIAL MEETING (9:00 AM)

1. CALL TO ORDER

2.  ROLL CALL

3.  PLEDGE OF ALLEGIANCE

4.  WORKSHOP

4.1 Draft Development Impact Fees Study
RECOMMENDED ACTION

1.  Review and provide comments on the draft Development Impact Fees (DIF) Study and recommend a public hearing be held during the October 5, 2022 City Council meeting, approving the DIF Study.

5. ADJOURN
Decorum Policy Notes
The Council anticipates and encourages public participation at its Council meeting on agenda items.

Please turn your cell phones off, refrain from talking in the audience or outbursts that may be disruptive.

We encourage participation and ask for a mutual respect for the proceedings.

Staff Reports
Materials related to an item on this agenda, including those submitted to the City Council after distribution of the agenda packet, are available for public inspection by contacting Stephanie Roseen, Acting City Clerk, at City Hall located at 29844 Haun Road or by calling (951) 672­6777 during normal business hours.

Compliance with the Americans with Disabilities Act
If you need special assistance to participate in this meeting, you should contact Stephanie Roseen, Acting City Clerk at (951) 672­6777. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Menifee Mayor and City Council

August 31, 2022
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CITY OF MENIFEE
SUBJECT: Draft Development Impact Fees Study
MEETING DATE: August 31, 2022
TO: Mayor and City Council
PREPARED BY: Jizelle Sandoval, Financial Analyst
REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager

RECOMMENDED ACTION

1. Review and provide comments on the draft Development Impact Fees (DIF) Study and recommend a public hearing be held during the October 5, 2022 City Council meeting, approving the DIF Study.

DISCUSSION
Background
Upon its incorporation in 2008, the City initially adopted the County’s DIF structure to ensure an ongoing financial mechanism to meet future needs. In 2017, the City completed a comprehensive review of the DIF program and in December 2017, the City adopted an updated DIF structure which was then implemented beginning July 1, 2018.

In 2021, the Matrix Consulting Group was retained by the City of Menifee to assist in reviewing and updating its DIF Fees. Given that the City’s last comprehensive impact fee study was completed in 2017, Matrix Consulting Group was tasked with reevaluating the nexus for these impact fees to ensure they are still appropriate, and the lists were updated to incorporate any completed projects and any new projects. The results of this study allows the City to ensure that there is still a nexus between future development and its proportionate impact on City infrastructure as well as update various cost and growth projections to verify the fee amounts established are reflective of current market conditions.

The DIF Nexus Study was presented to the Finance Committee for review on July 26, 2022.

The Finance Committee recommended a workshop for City Council. In addition, following the Finance Committee meeting, staff shared the study with the Building Industry Association (BIA), and presented to the Developer Stakeholder Group (DSG). As of the writing of this report, staff has not received formal comments from the BIA or representatives of the DSG. Comments Item Title: 4.1
Draft Development Impact Fees Study
Item Page Number: 1
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City of Menifee Staff Report
DIF Fee Study
August 31, 2022

related to the increase in the Police Impact fees, and requests for flexible implementation approaches that recognize the investment and impacts to entitled projects was discussed (and addressed further in this report). A follow-up meeting with the BIA will be scheduled.

Impact fees within the state of California are governed by the Mitigation Fee Act, which includes AB1600 and the recently enacted AB602 which requires demonstrating the reasonable relationship that exists between new development activity and the proposed benefit. Impact fees are a mechanism for new development to pay for their proportionate share of impact upon City owned facilities and infrastructure. The primary policy objective and establishment of the DIF program is to ensure that new development pays capital cost associated with growth. The DIF program is designed to support and fund improvements to public facilities and the purchase of equipment related to the provision of essential services based on the demands created by new growth and development.

In July 2018, the Mayor and City Council adopted a 5-year Strategic Visioning Plan. This plan establishes the City’s vision for the future and sets a roadmap for meeting current and future needs. The implementation plan lists the projects identified to meet the goals and objectives.

The DIF fee study also completes two objective that are part of the Strategic Visioning Plan as follows:
▪1.4.9 Police Department Formation – Analyze adequacy of public safety – DIF ▪2.3.1b Community Services Parks & Trails – Recalibrate the DIF Fee Structure Methodology
Through the course of this analysis, the impact fees were evaluated based upon the current projected impacts between 2021 and 2045. There are two typical methodologies utilized to calculate impact fees – service level standards and specific facility projections. For the purposes of this analysis the project team has utilized the more commonly accepted and recognized service level standards approach.

The service level standard approach is based on the creation and recognition of existing service level standards provided by the jurisdiction to the users of its services (residents, employees, students, etc.). As there is new development and growth in the community, there is the potential for the service level standard to decline if appropriate measures are not taken to retain that service level standard. Therefore, the service level standard calculates the impact of each individual on the city’s infrastructure and applies it to future individuals and growth. If there is an increase in the service population, there would be a corresponding impact on infrastructure, and thereby a nexus for collection of impact fees.

However, if there is no increased population or use of those services, impact fees would not be justifiable or applicable. For the purposes of calculating impact fees, the project team reviewed a variety of data elements from the state, regional organizations, county, and city staff. The following points highlight the data reviewed through the course of this analysis:
•Ordinances: The project team reviewed the City’s ordinances to ensure that there was the legal authority to assess and increase current impact fees.

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Draft Development Impact Fees Study
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City of Menifee Staff Report
DIF Fee Study
August 31, 2022

•General Plan, Facilities Assessment, Department Master Plans, and CIP Plans:

Data was reviewed from a variety of city specific documents regarding the potential growth in the community, the goals for the city and the departments, as well as future capital projects.
•Growth and Projection Data: Population, household, dwelling units, and employment information for current and future years was obtained from the U.S.

Census Bureau, the Southern California Association of Governments (SCAG) and internal City General Plan projection documents.
•Service Level Standards: Information such as police facilities, fire equipment, general equipment, park needs, and transportation projects were collected, reviewed, and applied for calculation regarding future impacts.
•Revenues and Expenses: Revenue collected for impact fees was reviewed to ensure compliance with reporting practices as well as to calculate an administrative overhead percentage. Expense information was reviewed for cost estimates for infrastructure as well as overhead allocation to the impact fees.

The above elements were utilized to develop and calculate updated impact fees for the City.

In addition, the study was prepared in compliance with the Mitigation Fee Act, described above.

More specifically, AB 1600 requires that there be certain findings that must be met in order for there to be a reasonable relationship or nexus between new development and the need for new facilities or infrastructure. The following points highlight each of the key finding requirements:
•Purpose of Fee: The specific types of facilities, infrastructure, equipment, and projects for which the impact fee will be utilized. It is important to note it cannot be utilized for operational purposes.
•Use of Fee Revenue: The revenue collected from the impact fees can only be used to fund specific facility expansions, infrastructure improvements, or to purchase new equipment.
•Benefit Relationship: The benefit relationship requires that the use of the impact fee revenue and the type of development project upon which it is imposed is reasonable. •Impact Relationship: To establish an impact relationship there needs to be a clear and reasonable relationship between the need for the public facility or infrastructure and the type of development project upon which the fee is imposed. •Proportionality: The proportionality requirement states that the impact fee established must be directly related to the proportionate impact of the type of development project.

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Draft Development Impact Fees Study
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City of Menifee Staff Report
DIF Fee Study
August 31, 2022

Results of Study
Based upon the results of this analysis, the project team has calculated updated or new impact fees for Animal Shelter, General Government, Fire, Police, Parks and Recreation, Transportation and Storm Drain. Based on the analysis, the fees associated with Library and Master Planning were eliminated. Proportional costs associated with future infrastructure impacts, along with administrative overhead, were used to calculate the full cost of the impact fees presented. The following table show the results of the updated impact fees calculated for the City:

Table 1: Impact Fee Services Reviewed
Impact Fees Service Area/Description
Animal Shelter JPA Debt Service
General Government City Hall, PW Corp Yard, and General Vehicles Fire Fire Facilities and Equipment
Law Enforcement Police Facilities and Equipment
Parks Park Amenities and Facilities
Circulation (Transportation) Signals, Street Improvements, At Grade Separations, etc.

Storm Drainage Storm Drain Infrastructure by Watershed and Sub-Basin Table 2: Development Impact Fees Schedule
Through this analysis the majority of the City’s impact fees have been validated and shown to be under-recovering. The only fees which the City will need to reduce are related to the Animal Shelter and the Single-Family Fire Impact Fee.

Land Use Animal Shelter General Govt. Fire Law Enf. Parks & Rec Transportation Impact Fees Single Family Unit $ 94 $ 1,176 $ 647 1,390$ 1,723$ 7,097$ 12,127$ Multi-Family Unit $ 74 $ 920 $ 506 1,088$ 1,348$ 3,585$ 7,521$ Commercial / Retail $ - $ 0.68 $ 0.85 0.68$ -$ 17.29$ 19.50$ Commercial / Service / Office $ - $ 1.87 $ 2.36 $ 1.86 -$ $ 8.24 14.33$ Industrial / Business Park $ - $ 0.25 $ 0.32 0.25$ -$ 4.66$ 5.48$ Residential Fee Per Dwelling Unit
Nonresidential Fee Per Sq. Ft.

Total Maximum Fee, Excluding Storm Drain
Storm Drain Impact Fee A_A A_B A_C B_A B_B F_A F_C F_E
Single Family Unit $ 9,995 $ 260 $ 4,694 658$ 1,906$ 139$ $ 2,029 $ 474 Multi-Family Unit $ 3,621 $ 95 $ 1,700 238$ 691$ 50$ $ 735 $ 172 Commercial / Retail $ 8.36 $ 0.22 $ 3.93 $ 0.56 $ - 0.11$ $ - $ 0.40 Commercial / Service / Office $ - $ 0.14 $ 2.61 $ 0.37 $ - 0.08$ $ - $ 0.27 Industrial $ - $ - $ - $ 0.31 $ - $ - $ - $ - Residential Fee Per Dwelling Unit
Nonresidential Fee Per Sq. Ft.

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Draft Development Impact Fees Study
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City of Menifee Staff Report
DIF Fee Study
August 31, 2022

Implementation Options
As noted in the Background Section above, the feedback from the Developer Stakeholder Group included requests to explore flexible implementation options. These could include the following for Council discussion/consideration:

1. Deferred Implementation (i.e. to July 2023)

2. Exceptions for entitled projects (i.e. fee freezes)
As follow up to comments related to Economic Development strategies raised by the Finance Subcommittee, staff explored the following phased in approach for Commercial/Retail and Office Land Uses for Council consideration. The phase in could include no increase in year 1 and in the following years, incremental increases (such as 25% annually). The phased approach is an economic development incentive tool for consideration.

FISCAL IMPACT
Based upon the Nexus Study, the City has a need of approximately $777.9 million in infrastructure, and if all fees were adopted at full cost, then new development would cover $319.5 million. The remaining $458.4 million gap would need to be recovered through other funding means. Should the Council choose to include any of the alternative implementation options the gap/additional funding sources amount will increase.

Table 3
Fee Name Total Infrastructure
Need ($)
New Development
Infrastructure ($) Funding Gap ($)
Animal Shelter $3,207,926 $1,379,408 $1,828,518
General Government $55,306,008 $22,675,463 $32,630,545
Fire $38,127,912 $16,395,022 $21,732,890
Police $64,498,152 $25,799,261 $38,698,891
Parks $58,798,000 $25,283,140 $33,514,860
Transportation $516,823,346 $201,561,105 $315,262,241
Storm Drainage $41,122,000 $26,390,700 $14,731,300
TOTAL $777,883,344 $319,484,099 $458,399,245
The proposed fees will also adopt Construction Cost Index (CCI) adjustment, as of December of the preceding (calendar) year and made effective for July 1 each fiscal year, allowing for automatic annual adjustments, including increases and decreases.

ATTACHMENTS

1. PowerPoint Presentation

2. Draft Development Impact Fee Nexus Study – August 2022 Item Title: 4.1
Draft Development Impact Fees Study
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__________________________________________________________

CITY DIF FEE

STUDY UPDATE
__________________________________________________________

COUNCIL WORKSHOP

CITY OF MENIFEE, CA
MEETING DATE: AUGUST 31, 2022

FINANCE DEPARTMENT &

MATRIX CONSULTING GROUP
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• Purpose
• Background
• Project Timeline
• Study Results – The Matrix Group, Inc.
• Implementation Options to Consider
• Recommended Action
AGENDA
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2021/22 DIF FEE
UPDATE
• DIF FEE STUDY is conducted to determine the proportionate impact of new development on current and future infrastructure for the City.
• Mitigation Fee Act (AB1600 and AB602)
• Infrastructure only (not operational costs)
• City engaged Matrix Consulting Group to complete comprehensive Cost Allocation (CAP), User Fee Study, and DIF Update.
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• City incorporated 2008 adopting County’s fee structure. • Update to Development Impact Fees (DIF) was approved on 12/6/2017 (Implemented on 7/1/2018).
• DIF Fees provide important funding to City’s CIP Program and Strategic Goal of being an Interconnected & Accessible Community
• DIF Fees are part of the Strategic Plan:
• 1.4.9: Police Department Formation – Analyze adequacy of public safety – DIF • 2.3.1B: Community Services Parks & Trails – Recalibrate the DIF Fee structure

BACKGROUND
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PROJECT

TIMELINE
• July 26, 2022: Finance Committee
• August 8, 2022: Stakeholder Meeting
• August 31, 2022: DIF Fees Workshop
• October 2022: DIF Fees for Approval (City Council)
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DIF Study Results
The Matrix Consulting Group Inc.
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• Population & employment projections
• Current & Future infrastructure needs
• Assign costs between existing and future
• Per Capita – Residential/Commercial
• Convert to Dwelling unit and per Sq. Ft.
• Add Administrative Fee
Impact Fee
Methodology
Impact fees can only be used for Infrastructure
Not operational costs 7
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Category 2021 Estimates Estimated Increase 2045 Estimates Residential Population 103,617 44,355 147,972
Employment Population 14,200 15,000 29,200
Growth Assumptions
Category Total Population Total # of Units Population / Unit (Avg. Density)
Single-Family 79,554 27,075 2.94
Multi-Family 4,067 1,765 2.30
Category Density (Sq. Ft. per employee)
Comm./Retail 550
Office 200
Industrial 1,500
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Fee Name Service Area / Description
Animal Shelter JPA Debt Service
General Government City Hall, PW Corp Yard, Broadband
Infrastructure, and Gen. Vehicles
Fire Fire Facilities and Equipment
Law Enforcement (Police) Police Facilities and Equipment Parks Parks Amenities and Facilities
Circulation (Transportation) Signals, Street Improvements, At Grade Separations, etc.

Storm Drainage Storm Drain Infrastructure by Watershed
and Sub-Basin
Impact Fee
Services
Reviewed
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Impact Fee Funding Overview
Fee Name
Total Infrastructure
Need ($)
New Development
Infrastructure ($)
Funding Gap
($)
Animal Shelter $3,207,926 $1,379,408 $1,828,518
General Government $55,306,008 $22,675,463 $32,630,545
Fire $38,127,912 $16,395,022 $21,732,890
Police $64,498,152 $25,799,261 $38,698,891
Parks $58,798,000 $25,283,140 $33,514,860
Transportation $516,823,346 $201,561,105 $315,262,241
Storm Drainage $41,122,000 $26,390,700 $14,731,300
Total $777,883,344 $319,484,099 $458,399,245
*Up to 41% of infrastructure costs associated with new development 10 Item Title: 4.1
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General
Government
Infrastructure: Animal Shelter JPA
Total Infrastructure Costs by Type: JPA Debt Service Payment until 2038 Portion Allocated to New Development: 43%
Methodology: Only residential
Commercial was removed
Animal
Shelter
Infrastructure: City Hall, Corp Yard, IT Broadband, PW & Park Vehicles/Equipment, & Nexus Analysis
Total Infrastructure Costs
by Type:

Facilities: $43M
Vehicles & Equipment: $11.2M
Portion Allocated to New
Development:
41%
Methodology: Split between residential and commercial
Residential = 76% Commercial = 24%
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Police
Infrastructure: Fire Stations, Fire Vehicles, & Nexus Analysis Total Infrastructure Costs by Type: Fire Stations: $20.8 M Fire Vehicles/Equip: $17.3M
Portion Allocated to New Development: 43%
Methodology: Split between residential and commercial
Residential = 58% Commercial = 42%
Fire
Infrastructure: Police Station, Vehicles, & Equipment
Total Infrastructure Costs
by Type:

Police Station: $20.4M
Vehicles & Equipment: $44.1M
Portion Allocated to New
Development:
40%
Methodology: Split between residential and commercial
Residential = 79% Commercial = 21%
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Transportation
Infrastructure: Community Centers, Dog Parks, & Future Park Development
Total Infrastructure Costs by Type: $15M Future parks amenities from Master Plan $13.2M Evan Parks
$11.5M Menifee Community Center
Portion Allocated to New Development: 43%
Methodology: Only residential population
Calculated per dwelling unit
Parks
Infrastructure: Signals, Traffic Projects, Grade Separations, & Bridges Total Infrastructure Costs
by Type:

Signals: $43M
Traffic Projects: $11.2M
Interchanges: $151.3M
Portion Allocated to New
Development:
39%
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Storm Drain
Infrastructure: Storm Drain Improvements
Total Infrastructure Costs by Type: $41 M
Portion Allocated to New
Development:
100% for Sub-Bains A_B & B_A
10% for Sub-Basin A_C
Methodology: Impervious surface coefficient to
calculate the potential for storm
drain impact
Converted that to the equivalent
dwelling unit for residential and
commercial
Calculated cost per EDU and
utilized EDU factor to calculate
impact fee.
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• Eliminated:
• Master Planning & Nexus Analysis & Library
• Non-Residential fee for Animal Shelter
• ADU & Sr. Assisted Living fee categories
• Consolidated:
• Public Use – Facilities, Parks – Land Improvement, and Parks Improvement were consolidated from 3 fees into 1
• Expanded:
• Storm Drain from 2 geographic regions to sub-basins and watersheds Impact Fee Study Highlights
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Fee
Results
Single
Family
Home
Storm Drain fees while calculated in the report are not shown as they are based upon the specific Watershed and Sub-Basin.

Fee Category Current Fee Full Cost Fee Difference Cost
Recovery %
Animal Shelter $160 $94 $66 170%
General Government $1,106 $1,176 ($70) 94%
Fire $665 $647 $18 103%
Police $250 $1,390 ($1,140) 18%
Transportation $5,060 $7,097 ($2,037) 71%
Parks $1,116 $1,723 ($607) 65%
Library $72 $0
Nexus $25 $0
Total $8,454 $12,127 ($3,770) 70%
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Fee
Results
Multi-
Family
Home
Storm Drain fees while calculated in the report are not shown as they are based upon the specific Watershed and Sub-Basin.

Fee Category Current Fee Full Cost Fee Difference Cost
Recovery %
Animal Shelter $118 $74 $44 159%
General Government $815 $920 ($105) 89%
Fire $490 $506 ($16) 97%
Police $183 $1,088 ($905) 17%
Transportation $3,534 $3,585 ($51) 99%
Parks $822 $1,348 ($526) 61%
Library $52 $0
Nexus $18 $0
Total $6,032 $7,521 ($1,559) 80%
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Fee
Results
Commercial
Retail
(per 1,000 sq. ft.)
Storm Drain fees while calculated in the report are not shown as they are based upon the specific Watershed and Sub-Basin.

Fee Category Current Fee Full Cost Fee Difference Cost
Recovery %
Animal Shelter $133 $0 $133 N / A
General Government $284 $680 ($396) 42%
Fire $464 $850 ($386) 55%
Police $63 $680 ($617) 9%
Transportation $8,383 $17,290 ($8,907) 48%
Parks $0 $0 $0 N / A
Library $0 $0 $0 N / A
Nexus $0 $0 $0 N / A
Total $9,327 $19,500 ($10,173) 47%
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Fee
Results
Office
(per 1,000 sq. ft.)
Storm Drain fees while calculated in the report are not shown as they are based upon the specific Watershed and Sub-Basin.

Fee Category Current Fee Full Cost Fee Difference Cost
Recovery %
Animal Shelter $173 $0 $173 N / A
General Government $371 $1,870 ($1,499) 20%
Fire $607 $2,360 ($1,753) 26%
Police $83 $1,860 ($1,777) 4%
Transportation $6,443 $8,240 ($1,797) 78%
Parks $0 $0 $0 N / A
Library $0 $0 $0 N / A
Nexus $0 $0 $0 N / A
Total $7,684 $14,330 ($6,646) 54%
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Fee
Results
Industrial
(per 1,000 sq. ft.)
Storm Drain fees while calculated in the report are not shown as they are based upon the specific Watershed and Sub-Basin.

Fee Category Current Fee Full Cost Fee Difference Cost
Recovery %
Animal Shelter $64 $0 $64 N / A
General Government $138 $250 ($112) 55%
Fire $225 $320 ($95) 70%
Police $31 $250 ($219) 12%
Transportation $4,270 $4,660 ($390) 92%
Parks $0 $0 $0 N / A
Library $0 $0 $0 N / A
Nexus $0 $0 $0 N / A
Total $4,728 $5,480 ($752) 86%
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Fee
Results
Storm Drain
These correlate to Master Drainage Plan.

Watershed
Single
Family
(per dwelling unit)
Multi-
Family
(per dwelling unit)
Comm./Retail
(per sq. ft.)
Office
(per sq. ft.)
Industrial
(per sq. ft.)
Sub Basin A_A $9,995 $3,621 $8.36
Sub Basin A_B $260 $95 $0.22 $0.14
Sub Basin A_C $4,694 $1,700 $3.93 $2.61
Sub Basin B_A $658 $238 $0.56 $0.37 $0.31
Sub Basin B_B $1,906 $691
Sub Basin F_A $139 $50 $0.11 $0.08
Sub Basin F_C $2,029 $735
Sub Basin F_E $474 $172 $0.40 $0.27
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Major
Subwatershed
Drainage
Areas
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• Largest increases: Police & Transportation
• Police: Inclusion of in-house police vehicles, equipment, and facility (not included in previous study)
• Transportation: Inclusion of additional traffic projects due to expected growth and anticipated growth
• Comparably fees are higher – however NO cities are the same, many jurisdictions have not completed an evaluation for almost 10 years and Menifee has different infrastructure needs compared to our neighboring cities
Impact Fee Results - Discussion
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• Excludes Storm Drain Impact Fees
• Avg Impact Fee = $8,238
• Other Fees = Library fees for all jurisdictions; and Nexus and Library fee for Menifee – Current.

Fee Comparison – Single Family
24 Jurisdiction Animal
Shelter Gen. Gov. Fire Police Parks Trans. Other Fees* Total Fee Menifee - Current $160 $1,106 $665 $250 $1,116 $5,060 $97 $8,454 Menifee - Full Cost $94 $1,176 $647 $1,390 $1,723 $7,097 $12,127 Corona $349 $212 $311 $4,047 $4,919
Eastvale $942 $481 $693 $2,116
Hemet $780 $560 $471 $1,736 $2,948 $735 $7,230
Lake Elsinore $348 $809 $751 $2,145 $1,369 $150 $5,572
Murrieta $241 $634 $597 $5,127 $6,532 $388 $13,519
Perris $576 $362 $59 $9,468 $4,025 $14,490
Temecula $728 $920 $686 $4,426 $3,062 $9,822
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• Excludes Storm Drain Impact Fees
• Avg Impact Fee = $6,202
• Other Fees = Library fees for all jurisdictions; and Nexus and Library fee for Menifee – Current.

Fee Comparison – Multi-Family
25 Jurisdiction Animal
Shelter Gen. Gov. Fire Police Parks Trans. Other
Fees* Total Fee
Menifee - Current $118 $815 $490 $183 $822 $3,534 $70 $6,032 Menifee - Full Cost $74 $920 $506 $1,088 $1,348 $3,585 $7,521 Corona $466 $366 $218 $3,238 $4,288
Eastvale $650 $332 $487 $1,469
Hemet $660 $480 $404 $1,247 $2,030 $631 $5,452
Lake Elsinore $299 $404 $612 $1,722 $959 $150 $4,146
Murrieta $168 $444 $417 $3,582 $4,539 $270 $9,420
Perris $522 $328 $54 $8,397 $2,817 $12,118
Temecula $390 $427 $388 $3,171 $2,143 $6,519
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Fee Comparison – Comm / Retail
(per sq.ft.)
26 Jurisdiction Animal
Shelter
Gen.

Gov. Fire Police Transp. Other Total Fee
Menifee - Current $0.13 $0.28 $0.46 $0.06 $8.38 $9.33
Menifee - Full Cost $0.68 $0.85 $0.68 $17.29 $19.50
Corona $0.16 $0.18 $1.98 $2.32
Eastvale $0.15 $0.13 $1.69 $1.97
Hemet $0.12 $0.24 $0.22 $4.47 $5.05
Lake Elsinore $0.11 $0.49 $3.84 $4.44
Murrieta $0.05 $0.31 $0.13 $9.09 $9.58
Perris $0.16 $0.10 $0.02 $5.23 $0.32 $5.82
Temecula $0.71 $0.24 $0.39 $11.71 $13.05
• Excludes Storm Drain Impact Fees
• Avg Impact Fee = $6.03 per sq. ft.
• Other Fees = Community Facilities
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Fee Comp. – Office
(per sq.ft.)
27 Jurisdiction Animal
Shelter
Gen.

Gov. Fire Police Transp. Other Total Fee
Menifee - Current $0.17 $0.37 $0.61 $0.08 $6.44 $7.68
Menifee - Full Cost $1.87 $2.36 $1.86 $8.24 $14.33
Corona $0.16 $0.18 $0.95 $1.29
Eastvale $0.15 $0.14 $0.37 $0.66
Hemet $0.12 $0.24 $0.22 $4.47 $5.05
Lake Elsinore $0.18 $0.34 $1.45 $1.97
Murrieta $0.07 $0.40 $0.17 $6.93 $7.57
Perris $0.16 $0.10 $0.02 $5.23 $0.32 $5.51
Temecula $0.26 $0.15 $0.09 $7.02 $7.52
• Excludes Storm Drain Impact Fees
• Avg Impact Fee = $4.22 per sq. ft.
• Other Fees = Community Facilities
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Fee Comp. – Industrial
(per sq.ft.)
28 Jurisdiction Animal
Shelter
Gen.

Gov. Fire Police Transp. Other Total Fee
Menifee - Current $0.06 $0.14 $0.23 $0.03 $4.27 $4.73
Menifee - Full Cost $0.25 $0.32 $0.25 $4.66 $5.48
Corona $0.02 $0.01 $0.42 $0.45
Eastvale $0.16 $0.14 $0.35 $0.65
Hemet $0.12 $0.06 $0.01 $0.74 $0.93
Lake Elsinore $0.04 $0.16 $0.81 $1.01
Murrieta $0.02 $0.15 $0.06 $0.99 $1.22
Perris $0.16 $0.10 $0.02 $5.23 $1.06 $6.57
Temecula $0.24 $0.15 $0.07 $4.21 $4.67
• Excludes Storm Drain Impact Fees
• Avg Impact Fee = $2.21 per sq. ft.
• Other Fees = Community Facilities as well as park impact fees for industrial use. 28 Item Title: 4.1
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QUESTIONS/COMMENTS
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Implementation
Options
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• Developer Requested considerations
• Deferred Implementation
• Exceptions for Entitled Projects
• Economic Development Strategy – Finance Subcommittee
• Phase In for Commercial/Retail and Office
Implementation Options
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Recommended Action
Review and provide comments on the draft Development Impact Fees (DIF) Study and recommend submittal for a public hearing and resolution approving the DIF Study at the October 5, 2022 City Council meeting
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QUESTIONS/COMMENTS
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Development Impact Fee Study CITY OF MENIFEE, CALIFORNIA DRAFT REPORT August 16, 2022

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Table of Contents 1. Introduction and Executive Summary 1 2. Legal Framework 11 3. Projected Growth and Development 14 4. Animal Shelter 18 5. General Government 23 6. Fire 30 7. Police 37 8. Parks and Recreation 44 9. Transportation 50 10. Storm Drain 57 Appendix: Storm Drain Projects & Map 65 Appendix: Transportation Project Listings 67 Item Title: 4.1
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1. Introduction and Executive Summary The draft report, which follows, presents the results of the Development Impact Fee Study conducted by the Matrix Consulting Group for the City of Menifee. 1 Project Background and Scope of Work The Matrix Consulting Group was retained by the City of Menifee to update its Impact Fees. Impact fees within the state of California are governed by the Mitigation Fee Act (AB1600) (Gov. Code §66000 et seq.) and AB602 which requires demonstrating the reasonable relationship that exists between the development activity and the proposed benefit. The City’s last comprehensive impact fee update was done in 2017 and as such the City is reevaluating the nexus for these impact fees to ensure that they are still appropriate and updated to incorporate any completed projects and any new projects. The results of this study allow the City to ensure that there is still a nexus between future development and its proportionate impact on City infrastructure as well as update the fee amounts to be more reflective of that impact. 2 General Project Approach and Methodology There are two typical methodologies utilized to calculate impact fees – service level standards and specific facility projections. For the purposes of this analysis the project team has utilized the more commonly accepted and recognized service level standards approach. The service level standard approach is based on the creation and recognition of existing service level standards provided by the jurisdiction to the users of its services (residents, employees, students, etc.). As there is new development and growth in the community, there is the potential for the service level standard to decline if appropriate measures are not taken to retain that service level standard. Therefore, the service level standard calculates the impact of each individual on the City’s infrastructure and applies it to future individuals and growth. If there is an increase in the service population, there would be a corresponding impact on infrastructure, and thereby a nexus for collection of impact fees. However, if there is no increased population or use of those services, impact fees would not be justifiable or applicable. For the purposes of calculating impact fees, the project team reviewed a variety of data elements from the state, regional organizations, county, and City staff. The following points highlight the data reviewed through the course of this analysis:

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• Ordinances: The project team reviewed the City’s ordinances to ensure that there was the legal authority to assess and increase current impact fees. • General Plan, Facilities Assessment, Department Master Plans, and CIP Plans: Data was reviewed from a variety of City specific documents regarding the potential growth in the community, the goals for the City and the departments, as well as future capital projects. • Growth and Projection Data: Population, household, dwelling units, and employment information for current and future years was obtained from the U.S. Census Bureau, the Southern California Association of Governments (SCAG) and internal City General Plan projection documents. • Service Level Standards: Information such as police facilities, fire equipment, general equipment, park needs, and transportation projects were collected, reviewed, and applied for calculation regarding future impacts. • Revenues and Expenses: Revenue collected for impact fees was reviewed to ensure compliance with reporting practices as well as to calculate an administrative overhead percentage. Expense information was reviewed for cost estimates for infrastructure as well as overhead allocation to the impact fees. The elements were utilized to develop and calculate updated impact fees for the City. 3 Summary of Results Based upon the results of this analysis, the project team has calculated updated or new impact fees for Animal Shelter, General Government, Fire, Police, Parks and Recreation, Transportation and Storm Drain. The fees associated with Library and Master Planning were eliminated and will be discussed further. As outlined in the Mitigation Fee Act, proportional costs associated with future infrastructure impacts, along with administrative overhead, were used to calculate the full cost of the impact fees presented. The following subsections show the results of the updated impact fees calculated for the City. 1 Animal Shelter Impact Fees The Animal Shelter Impact Fee for the City of Menifee was developed to help mitigate the impact of new development upon the need for a brand new or future Animal Shelter Facility. The City has recently joined a JPA through which it receives Animal Sheltering services and the impact fee will be used to offset the debt service costs associated with Item Title: 4.1
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the Animal Shelter facility. Through the course of this analysis, the impact fees were evaluated based upon the current projected impacts between 2021 and 2045. While this fee has traditionally been assessed on both residential and non-residential, based upon the current arrangement for the City of utilizing a JPA to provide Animal Shelter services it was determined that there was only a nexus for residential users for this service. Any non-residential or employee users would receive benefit through their potential membership from their residential city that is part of the regional JPA. The following table compares the City’s current fees to the full cost fee calculated through this study, the resulting surplus / (deficit), and the cost recovery: Table 1: Animal Shelter Impact Fees – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Cost Recovery % Single-Family $160 $94 $66 171% Multi-Family $118 $74 $44 159% The full cost fee calculated through this study represents the maximum fee that the City can charge and is inclusive of the administrative fee allowable under the Mitigation Fee Act. As the City’s full cost is lower than its current fee, the fee will need to be reduced to comply with the Mitigation Fee Act. 2 General Government Impact Fees The General Government Impact fee is meant to offset impacts upon City Hall, the Corporation Yard, and Public Works equipment and vehicles. It also includes costs associated with implementing IT Fiber Optic infrastructure throughout the City. Through the course of this analysis, the impact fees were evaluated based upon the current projected impacts between 2021 and 2045. The following table compares the City’s current fees to the full cost fee calculated through this study, the resulting surplus / (deficit), and the cost recovery: Table 2: General Government Impact Fees – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Cost Recovery % Residential (per dwelling unit) Single-Family $1,106 $1,176 ($70) 94% Multi-Family $815 $920 ($105) 89% Commercial / Non-Residential (per square foot) Commercial / Retail $0.28 $0.68 ($0.40) 42% Office $0.37 $1.87 ($1.50) 20% Industrial $0.14 $0.25 ($0.11) 55% The full cost fee calculated through this study represents the maximum fee that the City can charge and is inclusive of the administrative fee allowable under the Mitigation Fee Item Title: 4.1
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Act. The City is currently under-recovering for all of its categories for General Government, with a much lower cost recovery for non-residential projects. 3 Fire Impact Fees While the City of Menifee contracts for Fire services, it owns the Fire infrastructure. Therefore, the Fire Impact fee is meant to offset the cost associated with Fire Stations and vehicles. Through the course of this analysis the impact fees were evaluated based upon the current projected impacts between 2021 and 2045. The following table compares the City’s current fees to the full cost fee calculated through this study, the resulting surplus / (deficit), and the cost recovery: Table 3: Fire Impact Fees – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Cost Recovery % Residential (per dwelling unit) Single-Family $665 $647 $18 103% Multi-Family $490 $506 ($16) 97% Commercial / Non-Residential (per square foot) Commercial / Retail $0.46 $0.85 ($0.39) 54% Office $0.61 $2.36 ($1.75) 26% Industrial $0.23 $0.32 ($0.09) 71% The City is currently under-recovering for all but one of its Fire Impact fee categories. The fee for Single-Family homes will need to be reduced in order to comply with the Mitigation Fee Act. Non-residential projects have a much lower cost recovery, providing the opportunity to increase those fees to help recover their proportional share. 4 Police Impact Fees The City of Menifee used to contract for Police services; however, recently the City has transitioned to in-house services. In-house services allow the City to capture costs associated with City-owned Police facilities and vehicles. The Police Impact Fee is meant to offset the proportional impact of facility and equipment / vehicle costs. Through the course of this analysis, the impact fees were evaluated based upon the current projected impacts between 2021 and 2045. The following table compares the City’s current fees to the full cost fee calculated through this study, the resulting surplus / (deficit), and the cost recovery: Table 4: Police Impact Fees – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Cost Recovery % Residential (per dwelling unit) Single-Family $250 $1,390 ($1,140) 18% Multi-Family $183 $1,088 ($905) 17% Item Title: 4.1
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Category Current Fee Full Cost Fee Surplus / (Deficit) Cost Recovery % Commercial / Non-Residential (per square foot) Commercial / Retail $0.06 $0.68 ($0.62) 9% Office $0.08 $1.86 ($1.78) 4% Industrial $0.03 $0.25 ($0.22) 12% The City is significantly under-recovering for its Police impact fees. The primary reason for the change in costs is due to the previous study being conducted when services were outsourced. Therefore, the previous analysis did not take into account any in-house vehicles or equipment. 5 Parks and Recreation Impact Fees The City of Menifee currently assesses three different Parks-related impact fees. It was determined that for streamlining purposes those three fees should be combined into a singular fee to mitigate the impacts associated with recreational facilities, parks, and land development. Through the course of this analysis, the impact fees were evaluated based upon the current projected impacts between 2021 and 2045. The following table compares the City’s current fees to the full cost fee calculated through this study, the resulting surplus / (deficit), and the cost recovery: Table 5: Parks and Recreation Impact Fees – Current vs. Full Cost Category Current Fee1 Full Cost Fee Surplus / (Deficit) Cost Recovery % Single-Family $1,116 $1,723 ($607) 65% Multi-Family $822 $1,348 ($526) 61% The City is under-recovering for all its parks-related fees. The under-recovery is due to increased park demands and improvements needed due to future anticipated growth. It is important to note that these fees do not reflect the cost of land acquisition as that is covered through the City’s Quimby Fee. 6 Transportation Impact Fees The Transportation Impact fee is meant to offset impacts associated with traffic signals, transportation projects, grade separations, interchanges, and other circulation-related projects that are due to the anticipated growth within the community. Through the course of this analysis, the impact fees were evaluated based upon the current projected impacts between 2021 and 2045. The following table compares the City’s current fees to the full cost fee calculated through this study, the resulting surplus / (deficit), and the cost recovery: 1 This current fee is representative of all three current Parks-related fees charged by the City.

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Table 6: Transportation Impact Fees – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Cost Recovery % Residential (per dwelling unit) Single-Family $5,060 $7,097 ($2,037) 71% Multi-Family $3,534 $3,585 ($51) 99% Commercial / Non-Residential (per square foot) Commercial / Retail $8.38 $17.29 ($8.91) 48% Office $6.44 $8.24 ($1.79) 78% Industrial $4.27 $4.66 ($0.39) 92% The full cost fee calculated through this study represents the maximum fee that the City can charge and is inclusive of the administrative fee allowable under the Mitigation Fee Act. The City is under-recovering for all its transportation fees. The lowest cost recovery is associated with the retail land use type, as this type generates a significant amount of trips and has a much larger impact on the overall transportation infrastructure, compared to other land uses, which generate fewer trips. 7 Storm Drain Impact Fees The City of Menifee currently charges Storm Drain Fees based on geographic location: Encanto and MDP South Region. Since the previous analysis, the City completed a Master Drainage Plan that broke the City into Sub-Basins and Watershed (the A_A represents Basin A with Sub-Basin or Watershed as A_B). Discussions with Public Works staff revealed that the fairest nexus would be by utilizing the growth projections anticipated in each sub-basin and watershed. Therefore, a structural change was proposed to charge based upon sub-basin and watershed. The following table shows by sub-basin / watershed and land use the full cost fee calculated: Table 7: Storm Drain Impact Fees Total Cost Category Full Cost Impact Fee A_A Single-Family $9,995 per dwelling unit Multi-Family $3,621 per dwelling unit Retail $8.36 per sq. ft. A_B Single-Family $260 per dwelling unit Multi-Family $95 per dwelling unit Retail $0.22 per sq. ft. Office $0.14 per sq. ft. A_C Single-Family $4,694 per dwelling unit Multi-Family $1,700 per dwelling unit Retail $3.93 per sq. ft. Office $2.61 per sq. ft.

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Category Full Cost Impact Fee B_A Single-Family $658 per dwelling unit Multi-Family $238 per dwelling unit Retail $0.56 per sq. ft. Office $0.37 per sq. ft. Industrial $0.31 per sq. ft. B_B Single-Family $1,906 per dwelling unit Multi-Family $691 per dwelling unit F_A Single-Family $139 per dwelling unit Multi-Family $50 per dwelling unit Retail $0.11 per sq. ft. Office $0.08 per sq. ft. F_C Single-Family $2,029 per dwelling unit Multi-Family $735 per dwelling unit F_E Single-Family $474 per dwelling unit Multi-Family $172 per dwelling unit Retail $0.40 per sq. ft. Office $0.27 per sq. ft. The full cost fee calculated through this study represents the maximum fee that the City can charge and is inclusive of the administrative fee allowable under the Mitigation Fee Act. 8 Library Facilities and Master Planning Through this study the Library Facilities and Master Planning and Nexus Analysis Impact fees are being recommended to be eliminated. The Library Facilities fee is being eliminated due to the City utilizing the County’s library facilities. The Master Planning and Nexus Analysis is being eliminated as this component has been built into each individual fee category. This ensures that if fees are not studied together, there is still the ability to cover the costs associated with a nexus analysis for a specific fee. 9 Summary Through this analysis the majority of the City’s impact fees have been validated and shown to be under-recovering. The only fees which the City will need to reduce are related to the Animal Shelter, and the Single-Family Fire Impact Fee. The results of this analysis identify the City’s infrastructure needs for current and future growth, and the proportion that would be paid by future development. The following table shows by fee category, the total infrastructure cost needed, the portion to be borne by new development and the resulting gap:

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Table 8: Infrastructure Cost Analysis Fee Category Total Infrastructure Cost Borne By New Development Gap Animal Shelter $3,207,926 $1,379,408 $1,828,518 General Government $55,306,008 $22,675,463 $32,630,545 Fire $38,127,912 $16,395,022 $21,732,890 Police $64,498,152 $25,799,261 $38,698,891 Parks $58,798,000 $25,283,140 $33,514,860 Transportation $516,823,346 $201,561,105 $315,262,241 Storm Drain $41,122,000 $26,390,700 $14,731,300 Total $777,883,344 $319,484,099 $458,399,245 Based upon the analysis, the City has a need of approximately $777.9 million in infrastructure, and if all impact fees were adopted at full cost, then new development would cover $319.5 million. The remaining $458.4 million gap would need to be recovered through other funding means. Overall, this report details the calculations for each of the impact fees, as well as validates the nexus that exists between the full cost identified and the proportionate impact of new development. 4 Implementation The impact fees calculated through this study are representative of the full cost associated with the proportionate share and impact of new development within the City. City staff, management, and Council can utilize the information in this report to determine if new development should bear the full cost of their proportionate impact, or if this share should be reduced for development incentivization or other policy considerations and factors. The following subsections discuss the key aspects for impact fee implementation and updates, which include: collection of fees, annual reporting requirements, refunds / credits / appeals, and annual updates. 1 Collection of Impact Fees Section 66007 of the California Government Code outlines when impact fees should be paid for residential and multi-family. Impact fees for Residential projects should be generally assessed and paid upon the date of final inspection or issuance of certificate of occupancy, which occurs first. For Multi-family projects, fees can be paid in phases based upon the dwelling units, at the completion of each unit’s final inspections, as long as it is at the final inspection or certificate of occupancy, whichever occurs last. There is no specific provision in the section regarding commercial, office, or industrial uses.

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2 Annual Impact Fee Reporting Requirements Section 66006 of the California Government Code dictates that once per year, within 180 days of the close of the fiscal year, the City must make available to the public detailed information regarding impact fees. This detailed information, should at a minimum include: • Impact Fee Description and Fund Number • Impact Fee Amount • Beginning and Ending balance of the account or fund. • Amount of fees collected in the fiscal year being reported on and the total interest earned. • Identification of project(s) on which the funds are being earmarked for. • Identification of the approximate date on which the projects would commence. • Identification of any interfund loans or transfers related to capital projects, and the amount of the transfer. • Amount of any refunds or allocations made on behalf of the impact fee funds. The above reports must be submitted and reviewed by City Council within 15 days of being posted publicly. Additionally, AB602 requires that the nexus analysis be made available publicly, along with the actual impact fee amount charged. 3 Refunds / Credits / Appeals / Waivers Section 66001 of the California Government Code requires that every five years the City must make findings regarding the utilization of the impact fee revenue and / or proposed utilization of it within five years of collection. If such findings are not made within five years of impact fee collection, the City must refund the monies to the current record owner or owner of the lots or units. As part of the adoption of the impact fee resolution, the City may choose to also identify circumstances or instances in which a developer could obtain credits, exemptions, or appeal fees. Fee credits are typically obtained in the case of redevelopment, for example, if a developer was to redevelop an existing 10 multi-unit complex into a 15 multi-unit complex, the developer retains credit for the 10 existing units and only pays impact fees on the 5 new units being added. This credit is only provided if the existing facility had already paid into impact fees. If the existing development had not paid any impact fees, there would be no credit applicable. Impact fee resolution may also include a discussion regarding fee exemptions. If a development project is determined to have no documented impact on the facilities for which the impact fees are being imposed, then the project may be exempt from impact Item Title: 4.1
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fees. The exemptions must not be granted by right and should be reviewed by City staff and Council to ensure that they are warranted and appropriate. Any reductions in impact fees, or waivers or appeals regarding impact fees, would have to be determined by City staff and Council and would be granted depending upon the nature and proportion of the impact of the future / proposed development on future infrastructure needs. Depending upon the nature of the project and its documented impacts, there might be a more in-depth process necessary to ensure that all impact fees collected are fair, proportionate, and in compliance with the Mitigation Fee Act. 4 Annual Increases The City’s current ordinances governing the impact fees provide the City with the ability to increase impact fees annually based upon the Construction Cost Index (CCI). This is considered a best practice and ensures that increases in construction costs are included in the impact fees and proportionate share is passed onto new development. The annual increase is not meant to be an infinite increase in fees. Per the Mitigation Fee Act and Assembly Bill 602 the nexus for the impact fees should be reevaluated every eight years to ensure that there is still an appropriate correlation between the current fee being charged and proposed development within the City.

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2. Legal Framework Impact Fees are a mechanism for new development to pay for their proportionate share of impact upon City owned facilities and infrastructure. The following subsections discuss the State’s requirements for impact fees and the City’s legal authority for assessing these fees. 1 State Legal Authority – AB1600 Development Impact Fees are governed by the Mitigation Fee Act, which includes AB1600 and the recently enacted AB602. AB1600 specifies that there needs to be a nexus between the collection of fees and the new residential and non-residential development within a City’s service area. It also states that this revenue can only be used to expand current or purchase of new facilities, infrastructure, and equipment. It does not allow for revenue to be used for staffing, maintenance, or other operational costs. AB1600 under the Mitigation Fee Act requires that there be certain findings that have to be met in order for there to be a reasonable relationship or nexus between new development and the need for new facilities or infrastructure. The following points highlight each of the key finding requirements: • Purpose of Fee: The specific types of facilities, infrastructure, equipment, and projects for which the impact fee will be utilized. It is important to note it cannot be utilized for operational purposes. • Use of Fee Revenue: The revenue collected from the impact fees can only be used to fund specific facility expansions, infrastructure improvements, or to purchase new equipment. • Benefit Relationship: The benefit relationship requires that the use of the impact fee revenue and the type of development project upon which it is imposed is reasonable. • Impact Relationship: In order to establish an impact relationship there needs to be a clear and reasonable relationship between the need for the public facility or infrastructure and the type of development project upon which the fee is imposed.

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• Proportionality: The proportionality requirement states that the impact fee established must be directly related to the proportionate impact of the type of development project. For each of the impact fees evaluated through this study, the individual chapter will discuss how the fee is able to meet the nexus criteria identified. 2 State Legal Authority – AB602 In January of 2022, Assembly Bill 602 (AB602) went into effect. This Bill is applicable to all impact fees that will be adopted / implemented January 1, 2022 or later. The bill has three main criteria: 1. Prior to the adoption of new impact fees a nexus study should be adopted. 2. The nexus study should highlight existing service levels, the new service level, and an explanation of why the new service level is appropriate. 3. A fee levied on housing development must be proportionate to the square footage of proposed units or make findings on why square footage is not the appropriate metric. Along with these three criteria, some other key provisions of the bill include: • Impact fees must be posted online – along with the nexus analysis. • All impact fees must be collected at time of final inspection or certificate of occupancy, whichever occurs later2. • A member of the public and / or developer can submit evidence citing the inability of the impact fee to comply with AB602 and AB1600 (Mitigation Fee Act)3. • Impact fees nexus studies must be updated every 8 years. AB602 also provides for a template to be developed by the State’s Department of Housing and Community Development prior to January 2024; however, at the time of this analysis, this template had not yet been created or made available to local jurisdictions. As such it was not utilized for the development of these impact fees. This report will serve as the City’s nexus analysis for its existing impact fees and will ensure that all criteria per AB602 are met and clearly outlined. 2 Section 65940.1.(3) 3 Section 66019(d)(1).

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2 City Legal Authority for Impact Fees The City of Menifee has the legal authority to charge for the impact fees identified as these fees are referenced in the municipal code and were adopted via resolution. The City’s current impact fees are governed by Menifee Municipal Code Chapter 8.02 – Development Impact Fees. This code states that the impact fees are to be set by Council resolution and to be in compliance with the state’s Mitigation Fee Act. The City’s most recent impact fee resolution was adopted on June 15, 2022. This resolution provided a list of all current impact fees based upon a 2017 Nexus Analysis study, with updated fee amounts. In accordance with the City’s Municipal Code, fees were updated annually based upon the Engineering Construction Cost Index (CCI) as adopted in the resolution.

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3. Projected Growth and Development The primary criteria for determining the projected impact of new development for impact fees is the amount of projected increase to the City’s population (residential and commercial). These projections then form the basis of impact fee calculations. In order to calculate the projected growth and development, as well as density requirements, the project team reviewed the following sources of data: • Southern California of Governments (SCAG): Data from SCAG was utilized for 2045 Estimates regarding total number of residential and employment population within the City. • California Department of Finance: Data from Department of Finance was used to estimate the current population for the City of Menifee. • US Census Bureau: The Census Bureau’s ‘On the map, Population, and American Community Survey’ (ACS) information was used to calculate residential densities and employment information. The information from these sources was utilized to calculate the projected increase in population as well as resulting population densities. The following subsections discuss the population projections calculated and the population densities used to calculate the impact fees. 1 Population Projections The basis for impact fees is predicated on sufficient population growth that results in a meaningful impact on City Infrastructure. The following table shows data for the 2021 residential and employment population, 2045 estimates, and associated increases for the City of Menifee: Table 9: Population Growth Projection through 2045 Category 2021 Estimates 2045 Estimates Total Projected Increase Residential Population 103,6174 147,9725 44,355 Employment Population 14,2006 29,2007 15,000 4 The 2021 residential population estimate is based upon the California Department of Finance for Menifee. 5 The 2045 estimate is based upon taking the 2022 population for Menifee from the California Department of Finance, which represents a 14% increase from SCAG 2020 estimates, so then the 2045 SCAG estimate is increased by 14% to arrive at 147,972. 6 The 2021 employment information is based on US Census Data “On the Map for All Jobs’ for Menifee for 2019 (most recent information available). This amount was lower than SCAG’s projection of 16,200 as such this number was chosen. 7 Represents SCAG’s 2045 projection of employment in Menifee. Based upon discussion with City planning staff it was determined that the 2045 estimate for SCAG was appropriate and should be utilized.

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As the table indicates, based upon population projections, the overall population is expected to increase by approximately 44,000 for residents and 15,000 for employment. The numbers noted in this table were used as the basis for all of the proportionate impact calculations throughout this study, with employment information utilized for calculations associated with non-residential projected growth. 2 Population Densities In addition to the population projection information, the other set of data that is consistently utilized in the calculations is the density associated with residential and non-residential categories. The following subsections discuss the population density assumptions utilized in the calculation of all impact fees in this report. 1 Residential Population Density Residential development can be extremely diverse ranging from single family to multi-family. The City of Menifee captures this diversity by splitting it into two different categories: single family and multi-family. The project team utilized information from the American Community Survey (ACS)8 regarding the total population per dwelling unit type and the total number of dwelling units to come up with the resulting average population density per unit for Menifee. The following table shows this calculation: Table 10: Residential Population Density Category Total Population Total # of Units Population / Unit (Avg. Density) Single-Family 79,554 27,075 2.94 2-4 Units 722 337 2.14 5+ Units 3,345 1,428 2.34 Multi-Family Composite 4,067 1,765 2.30 The total population for each density category was divided by the associated number of dwelling units in order to determine the average population per density type. The average density per unit is multiplied by the cost per capita calculation to derive the base impact fee. For all fee categories, the Single Family and Multi-Family Densities are used. Under AB602, there is a mandate to shift all density factors per dwelling unit to be based upon the square footage of the unit, rather than it being an ADU, Single-Family, or Multi-Family housing unit. However, the bill also states that if there is a stronger nexus that exists to utilize an alternative methodology, that methodology should be clearly explained and the stronger nexus must be demonstrated. Additionally, the bill also states that there must be other policies in the fee structure that support smaller developments, or otherwise ensure that small developments are not charged disproportionate fees. 8 ACS 5-Year Tables B25033 and B25032 were utilized to allow for smoothing across multiple years.

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The type of dwelling unit is utilized in the table above because the housing density factor determines the fee levied per unit. Based on regional and state estimates, the project team determined the average density for a single-family unit compared to multi-family unit. It is the people residing in the housing development that generate the impact on local government infrastructure and services, not the size of the development. If a single-family home is 1,500 sq. ft. or 2,200 sq. ft. but has 3 residents, its impact on roadways, or need for police and fire services, and / or use of parks services will be the same. Therefore, having a larger housing development does not generate the need for additional impact; it is the population density associated with the type of dwelling unit that creates further impacts. Thus, determining fees based on the density rather than the size of a dwelling allows the City to show the strongest nexus between the fee and the impact. Moreover, utilizing the density factor of the dwelling unit does, in fact, take into account the sizing (square footage) of the housing development. The multi-family unit has a lower population density (2.30) compared to the single-family population density (2.94). Therefore, when calculating impact fees, the largest fee would be for single-family and the lowest fees would be for multi-family. ADU projects would pay their proportionate share of single-family projects as dictated by state legislation and would ensure that smaller square footage developments (e.g., ADUs) would pay a lower fee than larger square footage developments (e.g., single-family home). Lastly, under the Mitigation Fee Act, the proportionality for impact fees for residential development is based on residential population growth. The population growth is tied most directly to the individuals residing within a housing development (i.e., the average residential density) rather than the size of the housing developments. Therefore, based upon these reasons, the project team has calculated all housing development impact fees based upon the type of dwelling unit (e.g., Single Family, Multi-Family, ADU) rather than the proportionate square footage. The per-dwelling unit fee for each type of dwelling unit is based on the average residential density within each type of dwelling unit. This will ensure that the City is able to meet the nexus and proportionality criteria of AB 1600 (Mitigation Fee Act) and AB 602 as well as allow for fair and defensible application of impact fees. Each chapter will continue to demonstrate how the use of per unit still results in a fair and equitable assessment of fees, and that larger projects such as single family homes pay more than the ADUs. 2 Non-Residential / Commercial Density Similar to the residential density calculation, a calculation was performed for non-residential development within the City. The City utilizes three main commercial categories – Commercial / Retail, Office, and Industrial. The previous study utilized the 2001 Natelson Group report for employment densities for SCAG. The City currently Item Title: 4.1
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contracts with the Natelson Group for other long-range planning efforts and the City contacted the group for updated employment densities. The following table shows the updated employment density associated with each non-residential category type: Table 11: Non-Residential Population Density Category Density (Sq. Ft. Per Employee) Commercial / Retail9 550 Office 200 Industrial 1,500 The density (square footage per employee) is multiplied by the cost per capita calculation to derive the base impact fee. It is important to note that the nexus analysis utilizes standard generic land use categories such as Commercial / Retail, Office, and Industrial. The following points provide some further clarification on the use types: • Commercial / Retail: This is meant to cover all retail and commercial uses, so anything from strip malls to autobody shops, to convenience stores, nail salons, hotels, motels, etc. • Office: This is primarily for anything that would be considered professional or office-type environment. So standard businesses (i.e. real estate office, law offices, etc.), shared office spaces, banks, medical offices, clinics, etc. • Industrial: This is meant for anything that is warehouse or industrial in nature. A more detailed definition for each land use can be included in the resolution, along with identifying projects that are considered exempt such as residential accessory structures or buildings within HOA parks. The following chapters utilize the assumptions included in this section to help project the proportionate impact of new development on the City’s existing and proposed infrastructure. 9 This is meant to be a catch-all land use category that can cover any type of commercial use that is not office or industrial in nature.

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4. Animal Shelter The City of Menifee is part of a Joint Powers Authority (JPA) with Southwest Communities Financing Authority (SCFA) through which it receives Animal Sheltering services. The JPA members are the owners of the facility and have issued a bond for the purchase of the Animal Shelter facility. Therefore, Menifee as a member organization contributes to the shelter infrastructure cost through an annual debt service payment. The proposed Animal Shelter impact fee would be used to offset the debt service payment associated with future development utilizing the Animal Shelter facility. The following subsections discuss the growth assumptions utilized, cost components included, resulting impact fee calculations, ability to meet the nexus criteria, and a comparative analysis of Animal Shelter Impact fees. 1 Growth Assumptions The City of Menifee’s Animal Sheltering services are provided through the JPA, which has a contract with Animal Friends of the Valley. The Animal Shelter is located in the City of Wildomar and serves all member agency residents. The member agencies for the JPA are nearby Riverside County cities. Due to the nature of the Animal Shelter and it serving multiple communities, for simplicity purposes it is being assumed that only residents within the City of Menifee benefit from the Animal Shelter. While non-residents, or employees that don’t live within Menifee could utilize the Shelter, the assumption is that those employees or non-residents are likely residents of other JPA member agencies and as such receive the benefit of the facility through their residential area. Therefore, the primary beneficiary of animal sheltering services is the residential population. The shelter will provide service to both existing and future population. The following table shows the current population, the future population, and the projected increase: Table 12: Future Population Increase Category Existing Population 2045 Population Population Increase Residential 103,617 147,972 44,355 As the table indicates, the projected increase in the residential population is approximately 44,000, which reflects a 43% increase compared to the existing population. Therefore, future development should bear approximately 43% of the costs.

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2 Cost Components and Assumptions The only infrastructure cost for the Animal Shelter is the annual debt service made by the City of Menifee. This debt service payment changes every year based upon the proportion of animals serviced by each member agency. However, the project team worked with City staff to identify the most recent debt service amount. The following table shows by category, the quantity, the unit cost, the total cost, the lifecycle, and the average annual cost: Table 13: Animal Shelter Cost Components Item Quantity Unit Cost Total Cost Lifecycle Avg Annual Cost Bond Payment 1 $185,878 $185,878 1 $185,878 Nexus Analysis 1 $10,000 $10,000 5 $2,000 The average annual cost for the Animal Shelter is multiplied against the 24-year planning horizon to calculate the total cost associated with City infrastructure. The following table shows this calculation for the 24-year planning period: Table 14: Total Projected Animal Shelter Infrastructure Cost – 24 years Category Average Annual Cost Planning Horizon Total Cost Bond Payment $185,878 1710 $3,159,926 Nexus Analysis $2,000 24 $48,000 TOTAL $3,207,926 Overall, in the next 24 years, Animal Shelter infrastructure will require approximately $3.2 million to meet the needs of the existing and future populations of the City. In addition to the $3.2 million in costs, the other cost component to be considered is an administrative fee. For purposes of this study, the project team calculated the administrative fee based upon the total indirect costs allocated to all Impact Fee funds from the FY 2022 Citywide Cost Allocation Plan and the average of the revenue collected by impact fee funds over the last three years. The following table shows this calculation: Table 15: Impact Fee – Admin Fee Calculation Category Impact Fee Funds Citywide Overhead $165,243 Impact Fee Revenue – 3 year average $5,877,779 ADMIN FEE RATE 2.80% 10 The bond payment schedule is only for 17 remaining years, as such even though the horizon is 24 years, the overall payment would only need to happen for 17 years.

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The proposed administrative fee for all impact fees would be 2.80%, which is higher than the current 2.50% administrative fee. This 2.80% accounts for support provided by City staff in the monitoring and reporting of impact fee funds. 3 Impact Fee Calculations As the previous section calculated, the total infrastructure needs for the Animal Shelter are approximately $3.2 million. However, not all of this cost should be borne by the future population. Based upon the growth assumptions analysis, 43% of these costs should be borne by the future population. The following table shows the calculation for costs to be borne by future residential populations: Table 16: Projected Cost Calculation Between Existing and Future Population Category Infrastructure Costs Proportion Total Cost to Be Borne Current Population $3,207,926 57% $1,828,518 Future Population $3,207,926 43% $1,379,408 Of the $3.2 million, $1.4 million should be borne by the future population. This $1.4 million is divided by the total projected population increase, to calculate the cost per capita, as shown in the following table: Table 17: Projected Cost for New Development – Per Capita Category Infrastructure Costs Projected Population Increase Cost / Capita Residential $1,379,408 44,355 $31 The cost per capita ($31) was then converted into a cost per dwelling unit based upon the density factors discussed in the projected growth and development chapter. The following table shows this calculation: Table 18: Animal Shelter Impact Fee Calculation Category Cost Per Capita Density / Unit Impact Fee Single-Family $31 2.94 $91 per dwelling unit Multi-Family $31 2.30 $71 per dwelling unit As the table indicates, the cost per dwelling unit varies from a low of $71 for multi-family to a high of $91 for single-family homes. To calculate the full allowable fee, the 2.80% administrative fee is applied to the impact fee. The following table shows this calculation:

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Table 19: Animal Shelter Impact Fee Calculation Including Administrative Fee Category Impact Fee Admin Fee Total Impact Fee Single-Family $91 $3 $94 per dwelling unit Multi-Family $71 $2 $73 per dwelling unit The addition of the administrative fee captures the full cost associated with the proportionate impact of future development. The following table compares the current Animal Shelter Impact Fees to the full cost impact fee, and the associated surplus / (deficit). Table 20: Animal Shelter Impact Fee – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Single-Family $160 $94 $66 Multi-Family $118 $73 $45 As the table indicates, all impact fees are currently over-recovering compared to the full cost. This is due to the prior nexus analysis assuming that the City would build its own animal shelter facility and equipment (as it was not a member agency of the JPA). However, due to the change, this results in a slightly more cost-effective approach for the City as it relates to infrastructure and results in fees needing to be reduced. 4 Nexus Criteria As discussed in the legal framework section, in order for an impact fee to be implemented it must meet all five of the nexus criteria as established per the Mitigation Fee Act. The following table outlines each criterion point, and how the proposed Animal Shelter Impact fee meets the Mitigation Fee Act criteria. Table 21: Animal Shelter Impact Fees Nexus Criteria Criteria Meet Don’t Meet Purpose of Fee The purpose of the fee would be to fund the debt service associated with the existing Animal Shelter, including any expansions needed to serve the increased population for the City.

Use of Fee Revenue The City has a debt service payment plan, which outlines that the revenue can only be used to offset facility payment costs.

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Criteria Meet Don’t Meet
Benefit Relationship
The use of the impact fee revenue would be to expand or improve the existing Animal Shelter facility, which would be directly proportional to the increased wear and tear and use of the facility as there is new residential growth in the City. The increase in residential population is related to the number of dwelling units and the impact fee would be applicable to dwelling units.

Impact Relationship Based upon the addition of new residents there would be a need for expanded facilities.

Proportionality The proposed impact fee would be a flat fee per dwelling unit depending upon the density of the housing units to capture the residential impacts as the primary mechanism for addition of residential population to the City is through increased dwelling units.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose an Animal Shelter Development Impact Fee. 5 Comparative Survey As part of this impact fee analysis, the project team conducted a comparative survey of surrounding jurisdictions who charge an Animal Shelter Impact Fee. The following table compares the City’s current fee and full cost for Animal Shelter to other surveyed jurisdictions in the region, which charge an Animal Shelter impact fee: Table 22: Animal Shelter Development Impact Fee Comparative Survey Jurisdiction Single-Family Multi-Family Menifee – Current $160 $118 Menifee – Full Cost $94 $73 Lake Elsinore $348 $299 There is only one other jurisdiction that charges an Animal Shelter impact fee and that is Lake Elsinore, which is also part of the JPA. Menifee’s current and full cost fees are less than Lake Elsinore’s fees.

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5. General Government General Government refers to City Hall and other governmental infrastructure that is not covered through other impact fees (i.e. Police, Fire, Parks, Traffic, Storm Drain, etc.). The following subsections discuss the growth assumptions utilized, cost components included, resulting impact fee calculation, ability to meet the nexus criteria, and a comparative analysis of General Government fees. 1 Growth Assumptions General Government consists of City Hall, Public Works facilities, Internet infrastructure, and Public Works and City vehicles. Staff located within these facilities and using that equipment provide services to current and future residents and employees. These services benefit both existing and future development. To determine the proportionate share of existing and future development, the project team calculated the future service population for the City. An employee working within the City does not have the same tendency to use City services as a resident, as such their impact and weight should be proportionately less. The following table shows the current population for each category, the proportionate weight, and the equivalent residential population: Table 23: Future Weighted Service Population Increase Category Existing Population Projected Increase Weight Factor Weighted Population Increase Residential 103,617 44,355 1.00 44,355 Commercial 14,200 15,000 0.2411 3,600 TOTAL 117,817 59,375 47,955 As the table indicates, the projected increase in the service population is approximately 47,955 which reflects a 41% increase compared to the existing population. Therefore, future development should bear approximately 41% of the costs. 2 Cost Components and Assumptions Due to the projected increase in residential and non-residential population there will be an impact on the City’s infrastructure. The planning horizon for the impact fee is 24 years (2021 through 2045) and while the department intends to purchase some additional equipment and relocate facilities, it will also need to replace existing equipment and upgrade its facilities during that span. A proportionate share of those upgrades should 11 To calculate the employee weight factor, the study assumes that employees are only in the City 40 hours out of the whole week or 40 hours out of 168 possible hours in a week.

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be borne by future development as future development will benefit from that equipment and the facilities. The following table provides information regarding general government equipment, vehicle, and facility costs based upon existing and planned facilities. All quantity, cost per unit calculations and life cycle information was discussed with the City of Menifee Staff: Table 24: General Government Equipment Costs Item Quantity Unit Cost Total Cost Lifecycle Avg Annual Cost PUBLIC FACILITIES City Hall 1 $48,750,000 $48,750,000 50 $975,000 Public Works Corporation Yard 1 $12,000,000 $12,000,000 50 $240,000 Broadband Infrastructure 1 $14,000,000 $14,000,000 30 $466,667 Paloma Wash Pedestrian Bridge 1 $500,000 $500,000 50 $10,000 Rouse/I215 Pedestrian/NEV Bridge 1 $5,000,000 $5,000,000 50 $100,000 Subtotal $1,791,667 VEHICLES F-450 Gas 4X2 Dually Flatbed 1 $75,000 $75,000 8 $9,375 F-250 Gas 4X4 Supercab Service Body 12 $55,000 $660,000 8 $82,500 F-250 Gas 4X4 Regular Cab 1 $45,000 $45,000 8 $5,625 F-250 Gas 4X4 Supercab Service Body 5 $55,000 $275,000 8 $34,375 F-250 Gas 4X4 Regular Cab 1 $45,000 $45,000 8 $5,625 Gas 4X4 Supercab Pick-up 4 $40,000 $160,000 8 $20,000 Hybryd SUV 1 $50,000 $50,000 8 $6,250 Hybryd Compact 1 $35,000 $35,000 8 $4,375 F-250 Gas 4X4 Supercab Service Body 2 $55,000 $110,000 8 $13,750 Subtotal $181,875 EQUIPMENT Road Motor Grader 1 $300,000 $300,000 12 $25,000 Asphalt Patch Truck 1 $250,000 $250,000 8 $31,250 Asphalt Roller (Small) 1 $55,000 $55,000 12 $4,583 Asphalt Roller (Large) 1 $100,000 $100,000 12 $8,333 Asphalt Crack Sealer 1 $100,000 $100,000 12 $8,333 Water Truck 1 $120,000 $120,000 8 $15,000 Water Buffalo Trailer 1 $10,000 $10,000 12 $833 Deisel Dump Truck (5-7 CY) 1 $200,000 $200,000 12 $16,667 Deisel Dump Truck (3-4 CY) 1 $120,000 $120,000 12 $10,000 Skip Loader 1 $140,000 $140,000 12 $11,667 Backhoe 1 $140,000 $140,000 12 $11,667 Skid Steer + Skid Steer Track 1 $75,000 $75,000 12 $6,250 Skid Steer Attachments 1 $10,000 $10,000 12 $833 Mini Excavator 1 $55,000 $55,000 8 $6,875 Towable Air Compressor + Tools 1 $30,000 $30,000 12 $2,500 Towable Light Towers 2 $20,000 $40,000 12 $3,333 Cement Bullet Mixer 1 $40,000 $40,000 12 $3,333 Street Sweeper 2 $285,000 $570,000 8 $71,250 Bucket Truck 1 $140,000 $140,000 10 $14,000 Woodchipper and Box Truck 1 $80,000 $80,000 10 $8,000 Herbicide Spray Trailer 1 $15,000 $15,000 12 $1,250 Stencil Legend Truck 1 $150,000 $150,000 10 $15,000 Item Title: 4.1
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Item Quantity Unit Cost Total Cost Lifecycle Avg Annual Cost Pressure Washer 1 $20,000 $20,000 12 $1,667 Trailer- Tilt Heavy Equipment 1 $10,000 $10,000 12 $833 Trailer - Heavy Equipment 1 $45,000 $45,000 12 $3,750 Trailer - Equipment 1 $10,000 $10,000 12 $833 Trailer - Emergency Road Closure 1 $10,000 $10,000 12 $833 Trailer - Dump 1 $20,000 $20,000 12 $1,667 Trailer - Vactor 1 $200,000 $200,000 12 $16,667 Boom Mower 1 $200,000 $200,000 12 $16,667 Message Board Trailer 4 $25,000 $100,000 12 $8,333 Arrow Board Trailer 2 $10,000 $20,000 12 $1,667 Subtotal $328,875 NEXUS ANALYSIS 1 $10,000 $10,000 5 $2,000 The average annual cost for City equipment is multiplied against the 24-year planning horizon to calculate the total cost associated with City equipment based upon the three categories: Existing, Planned, and Nexus Analysis. The following table shows this calculation for the 24-year planning period: Table 25: Total Projected Infrastructure Cost – 24 years Category Average Annual Cost Planning Horizon Total Cost Public Facilities $1,791,667 24 $43,000,008 Vehicles $181,875 24 $4,365,000 Equipment $328,875 24 $7,893,000 Nexus Analysis $2,000 24 $48,000 TOTAL $2,304,417 24 $55,306,008 Overall, in the next 24 years General Governmental infrastructure will require approximately $55.3 million to meet the needs of the existing and future populations of the City. In addition to the $55.3 million in costs, the other cost component to be considered is the administrative fee. For purposes of this study, the project team calculated the administrative fee based upon the total indirect costs allocated to all Impact Fee funds from the FY 2022 Citywide Cost Allocation Plan and the average of the revenue collected by impact fee funds over the last three years. The following table shows this calculation: Table 26: Impact Fee – Admin Fee Calculation Category Impact Fee Funds Citywide Overhead $165,243 Impact Fee Revenue – 3 year average $5,877,779 ADMIN FEE RATE 2.80% Item Title: 4.1
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The proposed administrative fee for all impact fees would be 2.80%, which is higher than the current 2.50% administrative fee. This 2.80% accounts for support provided by City staff in the monitoring and reporting of impact fee funds. 3 Impact Fee Calculations As the previous section calculated, the total infrastructure needs for General Government Facilities are approximately $55.3 million. However, not all of this cost should be borne by future populations. Based upon the growth assumptions analysis, 41% of these costs should be borne by the future population. The following table shows the calculation for costs to be borne by future residential and non-residential populations: Table 27: Projected Cost Calculation Between Existing and Future Population Category Infrastructure Costs Proportion Total Cost to Be Borne Current Population $55,306,008 59% $32,630,545 Future Population $55,306,008 41% $22,675,463 Of the $55.3 million, $22.7 million should be borne by the future population. This $22.7 million is split between residential and commercial based upon the proportion of residential and commercial use of the services. The following table shows the future infrastructure cost and the proportion between residential and commercial. Table 28: Projected Cost for New Development – Residential and Commercial Category Infrastructure Costs Proportion of Use Total Cost to Be Borne Residential $22,675,463 76% $17,233,352 Commercial $22,675,463 24% $5,442,111 Approximately $17.2 million of the $22.7 million is residential, and the remaining $5.5 million is commercial-related. The $17.2 and $5.5 million are divided by the total projected population increases, to calculate the cost per capita, as shown in the following table: Table 29: Projected Cost for New Development – Per Capita Category Infrastructure Costs Projected Population Increase Cost / Capita Residential $17,233,352 44,355 $389 Commercial $5,442,111 15,000 $363 The cost per capita from this table was converted into a cost per dwelling unit and cost per sq. ft. based upon the density factors discussed in the projected growth and development chapter. The following table shows this calculation:

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Table 30: General Government Impact Fee Calculation Category Cost Per Capita Density Impact Fee Residential Single-Family $389 2.94 $1,144 per dwelling unit Multi-Family $389 2.30 $895 per dwelling unit Non-Residential Commercial / Retail $363 550 $0.66 per sq. ft. Office $363 200 $1.82 per sq. ft. Industrial $363 1,500 $0.24 per sq. ft. As the table above indicates, the cost per dwelling unit varies from a low of $895 for multi-family to a high of $1,144 for single-family homes. The fees for commercial and non-residential vary from $0.24 per square foot for industrial to a high of $1.82 per square foot for office properties. To calculate the full allowable fee, the 2.80% administrative fee is applied to the impact fee. The following table shows this calculation: Table 31: General Government Impact Fee Calculation Including Administrative Fee Category Impact Fee Admin Fee Total Impact Fee Residential Single-Family $1,144 $32 $1,176 per dwelling unit Multi-Family $895 $25 $920 per dwelling unit Commercial / Non-Residential Commercial / Retail $0.66 $0.02 $0.68 per sq. ft. Office $1.81 $0.05 $1.87 per sq. ft. Industrial $0.24 $0.01 $0.25 per sq. ft. The addition of the administrative fee captures the full cost associated with the proportionate impact of future development. The following table compares the current General Government Impact Fee to the full cost impact fee, and the associated surplus / (deficit). Table 32: General Government Impact Fee – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Residential (per dwelling unit) Single-Family $1,106 $1,176 ($70) Multi-Family $815 $920 ($105) Commercial / Non-Residential (per square foot) Retail $0.28 $0.68 ($0.40) Commercial / Office $0.37 $1.87 ($1.50) Industrial $0.14 $0.25 ($0.11) As the table indicates, all current impact fees are under-recovering compared to the full cost. These fees have not been updated in five years, and as such some of the projected increases in fees would be expected due to cost factor increases. Furthermore, other Item Title: 4.1
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projected increases have to do with increased costs associated with facility, equipment acquisition, and replacement. 4 Nexus Criteria As discussed in the legal framework section, in order for an impact fee to be implemented it must meet all five of the nexus criteria as established per the Mitigation Fee Act. The following table outlines each criterion point, and how the proposed General Government Impact fee meets the Mitigation Fee Act criteria. Table 33: General Government Impact Fees Nexus Criteria Criteria Meet Don’t Meet Purpose of Fee The purpose of the fee would be to upgrade existing City Hall, Public Works Facilities, City vehicles and equipment.

Use of Fee Revenue The Public Works Department has detailed capital improvement plans that outline the utilization of this fee revenue for current and future years to help ensure that there is appropriate expansion of City facilities and equipment to meet the needs of the City.

Benefit Relationship The use of the impact fee revenue would be to rehabilitate existing facilities and equipment due to new development. New residents and employees receive benefits from improved equipment and access to infrastructure.

Impact Relationship
The addition of new residents and employees would have an impact on the ability of the City to meet all the needs. Therefore, the cost associated with adding additional equipment or expanding facilities to accommodate additional staff to allow for appropriate handling of the new growth would be borne by new residents or employees.

Proportionality
The proposed impact fee is calculated based upon proportionality of projected growth with the greatest impact by residential areas, followed by commercial areas. The fees are calculated on a per dwelling unit for residential properties and on a per sq. ft. basis for commercial properties as the impact is more space based rather than unit based.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose a General Government Impact Fee.

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5 Comparative Survey As part of this impact fee analysis, the project team conducted a comparative survey of surrounding jurisdictions who charge a General Government Impact Fee. The following table compares the City’s current fee and full cost for General Government to other surveyed jurisdictions in the region, which charge a General Government impact fee: Table 34: General Government Impact Fee Comparative Survey Residential Non-Residential Jurisdiction Single-Family Multi-Family Retail – Per Sq. Ft Office – Per Sq. Ft Industrial – Per Sq. Ft Menifee – Current $1,106 $815 $0.28 $0.37 $0.14 Menifee – Full Cost $1,176 $920 $0.68 $1.87 $0.25 Eastvale $942 $650 $0.15 $0.15 $0.16 Hemet $780 $660 $0.12 $0.12 $0.12 Lake Elsinore $809 $696 $0.11 $0.18 $0.04 Murrieta $241 $168 $0.05 $0.07 $0.02 Perris $576 $522 $0.162 $0.162 $0.162 Temecula $728 $390 $0.71 $0.26 $0.24 The majority of the surveyed jurisdictions charge fees similar to Menifee, per dwelling unit for residential and per square foot for non-residential. Among the surveyed jurisdictions no City as a higher fee than Menifee’s current fee and full cost for residential. As it relates to non-residential only commercial / retail category for Temecula has a higher fee than Menifee’s current fee. All of the surveyed jurisdictions similar to Menifee, adopted a nexus analysis, and have been applying a cost factor to increase fees. The following table shows by jurisdiction, when the original nexus was adopted, and when the last fee amount was updated: Table 35: Comparative Survey Information Jurisdiction Date of Original Nexus Last Fee Update Eastvale 2012 2022 Hemet 2006 2021 Lake Elsinore 2016 2016 Murrieta N / A 2019 Perris 2006 2022 Temecula 2003 2022 As the table indicates, while the majority of the jurisdictions have updated fees, the nexus for those fees has not been reevaluated in a substantial time. The only jurisdiction that has done an analysis within the last 10 years is Lake Elsinore.

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6. Fire The City of Menifee contracts for Fire Prevention and Fire Suppression services with the County of Riverside. However, all infrastructure – Fire Stations and Vehicles / Equipment are owned by the City of Menifee. Therefore, the City of Menifee assesses an impact fee to recover the costs associated with Fire Infrastructure. The following subsections discuss the growth assumptions utilized, cost components included, resulting impact fee calculation, ability to meet the nexus criteria, and a comparative analysis of Fire fees. 1 Growth Assumptions The Fire Department serves both residential and commercial populations (employees). Future increased development would result in the need for expanded or relocated Fire stations, additional equipment, and vehicles. The primary goal of the Fire Department is to provide fire prevention and suppression services within the City. These services benefit both existing and future development to determine the proportionate share of existing and future development, the project team calculated the future service population for the City. An employee working within the City does not have the same tendency to use fire services as a resident, as such their impact and weight should be proportionately less. The following table shows the current population for each category, the proportionate weight, and the equivalent residential population: Table 36: Future Weighted Service Population Increase Category Existing Population Projected Increase Weight Factor Weighted Population Increase Residential 103,617 44,355 1.00 44,375 Commercial 14,200 15,000 0.4212 6,300 TOTAL 117,817 59,375 50,655 As the table indicates, the projected increase in the service population is approximately 50,655, which reflects a 43% increase compared to the existing population. Therefore, future development should bear approximately 43% of the costs. 2 Cost Components and Assumptions Due to the projected increase in residential and non-residential population there will be an impact on the department’s infrastructure. The planning horizon for the impact fee is 24 years (2021 through 2045) and while the department intends to purchase some 12 To calculate the employee weight factor, the project team utilized a 3 year average (FY19-FY21) of proportion of fire calls for service that are commercial relative to residential calls for service.

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additional equipment and relocate facilities, it will also need to replace existing equipment and upgrade its facilities during that span. A proportionate share of those upgrades should be borne by future development as future development will benefit from that equipment and the facilities. The following table provides information regarding fire equipment, vehicle, and facility costs based upon existing and planned facilities. All quantity, cost per unit calculations and life cycle information was discussed with the City of Menifee Staff: Table 37: Fire Equipment Costs Item Quantity Unit Cost Total Cost Lifecycle Avg Annual Cost EXISTING FACILITIES Sun City Fire Station - Building 1 $1,720,389 $1,720,389 20 $86,019 Menifee Fire Station - Building 1 $1,348,966 $1,348,966 20 $67,448 Menifee Lakes / HQ - Building 1 $3,036,287 $3,036,287 20 $151,814 Quail Valley Fire Station 1 $8,000,000 $8,000,000 50 $160,000 Inspector Vehicles 5 $28,000 $140,000 7 $20,000 Paramedic Squads 2 $300,000 $600,000 15 $40,000 Medic Patrol 1 $400,000 $400,000 15 $26,667 Ladder Truck 1 $1,800,000 $1,800,000 15 $120,000 Engines 4 $900,000 $3,600,000 15 $240,000 EMS Specialist Vehicle 1 $28,000 $28,000 7 $4,000 Subtotal $915,949 PLANNED FACILITIES AND EQUIPMENT Northeast Fire Station 1 $8,000,000 $8,000,000 50 $160,000 Southeast Fire Station 1 $8,000,000 $8,000,000 50 $160,000 Shared Costs of the Northwest Station 1 $3,750,000 $3,750,000 50 $75,000 Engine 3 $900,000 $2,700,000 15 $180,000 Medic Squad 2 $300,000 $600,000 15 $40,000 Utility Vehicle 1 $45,000 $45,000 7 $6,429 Battalion Chief Vehicle 1 $75,000 $75,000 7 $10,714 Light / Air Bottling / Canteen 1 $200,000 $200,000 7 $28,571 Inspector Vehicles 1 $28,000 $28,000 7 $4,000 Subtotal $670,714 NEXUS ANALYSIS 1 $10,000 $10,000 5 $2,000 The average annual cost for Fire equipment is multiplied against the 24-year planning horizon to calculate the total cost associated with Fire equipment based upon the three categories: Existing, Planned, and Nexus Analysis. The following table shows this calculation for the 24-year planning period: Table 38: Total Projected Infrastructure Cost – 24 years Category Average Annual Cost Planning Horizon Total Cost Existing Facilities $915,949 24 $21,982,776 Planned Facilities and Equipment $670,714 24 $16,097,136 Nexus Analysis $2,000 24 $48,000 TOTAL $1,584,663 24 $38,127,912 Item Title: 4.1
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Overall, in the next 24 years the Fire Department will require approximately $38.1 million to meet the needs of existing and future populations of the City. In addition to the $38.1 million in costs, the other cost component to be considered is the administrative fee. For purposes of this study, the project team calculated the administrative fee based upon the total indirect costs allocated to all Impact Fee funds from the FY 2022 Citywide Cost Allocation Plan and the average of the revenue collected by impact fee funds over the last three years. The following table shows this calculation: Table 39: Impact Fee – Admin Fee Calculation Category Impact Fee Funds Citywide Overhead $165,243 Impact Fee Revenue – 3 year average $5,877,779 ADMIN FEE RATE 2.80% The proposed administrative fee for all impact fees would be 2.80%, which is higher than the current 2.50% administrative fee. This 2.80% accounts for support provided by City staff in the monitoring and reporting of impact fee funds. 3 Impact Fee Calculations As the previous section calculated, the total infrastructure needs for the Fire Department are approximately $38.1 million. However, not all of this cost should be borne by the future population. Based upon the growth assumptions analysis, 43% of these costs should be borne by the future population. The following table shows the calculation for costs to be borne by future residential and non-residential populations: Table 40: Projected Cost Calculation Between Existing and Future Population Category Infrastructure Costs Proportion Total Cost to Be Borne Current Population $38,127,912 57% $21,732,190 Future Population $38,127,912 43% $16,395,022 Of the $38.1 million, $16.4 million should be borne by the future population. This $16.4 million is split between residential and commercial based upon the proportion of calls for service for residential and commercial. The following table shows by future population cost, the proportion between residential and commercial to show the total cost: Table 41: Projected Cost for New Development – Residential and Commercial Category Infrastructure Costs Proportion of Calls for Service Total Cost to Be Borne Residential $16,395,022 58% $9,509,101 Commercial $16,395,022 42% $6,885,901 Item Title: 4.1
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Approximately $9.5 million of the $16.4 million is residential and the remaining $6.9 million is commercial-related. The $9.5 and $6.9 million is divided by the total projected population increase, to calculate the cost per capita, as shown in the following table: Table 42: Projected Cost for New Development – Per Capita Category Infrastructure Costs Projected Population Increase Cost / Capita Residential $9,509,101 44,355 $214 Commercial $6,885,901 15,000 $459 The cost per capita from this table was converted into a cost per dwelling unit and cost per sq. ft. based upon the density factors discussed in the projected growth and development chapter. The following table shows this calculation: Table 43: Fire Impact Fee Calculation Category Cost Per Capita Density Impact Fee Residential Single-Family $214 2.94 $629 per dwelling unit Multi-Family $214 2.30 $492 per dwelling unit Non-Residential Commercial / Retail $459 550 $0.83 per sq. ft. Office $459 200 $2.30 per sq. ft. Industrial $459 1,500 $0.31 per sq. ft. As the table above indicates, the cost per dwelling unit varies from a low of $492 for multi-family to a high of $629 for single-family homes. The fees for commercial and non-residential vary from a low of $0.31 per square foot for to a high of $2.30 per square foot for office properties. To calculate the full allowable fee, the 2.80% administrative fee is applied to the impact fee. The following table shows this calculation: Table 44: Fire Impact Fee Calculation Including Administrative Fee Category Impact Fee Admin Fee Total Impact Fee Residential Single-Family $629 $18 $647 per dwelling unit Multi-Family $492 $14 $506 per dwelling unit Commercial / Non-Residential Commercial / Retail $0.83 $0.02 $0.85 per sq. ft. Office $2.30 $0.06 $2.36 per sq. ft. Industrial $0.31 $0.01 $0.32 per sq. ft. The addition of the administrative fee captures the full cost associated with the proportionate impact of future development. The following table compares the current Fire Impact Fee to the full cost impact fee, and the associated surplus / (deficit).

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Table 45: Fire Impact Fee – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Residential (per dwelling unit) Single-Family $665 $647 $18 Multi-Family $490 $506 ($16) Commercial / Non-Residential (per square foot) Commercial / Retail $0.46 $0.85 ($0.39) Office $0.61 $2.36 ($1.75) Industrial $0.23 $0.32 ($0.09) As the table indicates, all but the single-family current impact fees are under-recovering compared to the full cost. The single-family impact fee is over-recovering by approximately $18 and will need to be reduced to comply with the Mitigation Fee Act. 4 Nexus Criteria As discussed in the legal framework section, in order for an impact fee to be implemented it must meet all five of the nexus criteria as established per the Mitigation Fee Act. The following table outlines each criterion point, and how the proposed Fire Impact fee meets the Mitigation Fee Act criteria. Table 46: Fire Impact Fees Nexus Criteria Criteria Meet Don’t Meet Purpose of Fee The purpose of the fee would be to upgrade existing Fire stations; relocate and reconstruct existing fire stations; and replace outdated fire equipment.

Use of Fee Revenue The Fire Department has detailed capital improvement plans that outline the utilization of this fee revenue for current and future years to help ensure that there is appropriate expansion of fire facilities and equipment to meet the public safety goals of the City.

Benefit Relationship
The use of the impact fee revenue would be to rehabilitate existing fire stations to accommodate the appropriate number of ambulances and engines, as well as ensure that stations are located in appropriate locations to allow for the most efficient response for service. New residents and employees receive benefits from increased equipment and more efficient response times.

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Criteria Meet Don’t Meet
Impact Relationship
The addition of new residents and employees would have an impact on the ability of the fire stations to respond adequately, including in an efficient manner. Therefore, the cost associated with adding additional equipment or expanding facilities to accommodate additional staff to allow for responses would be borne by new residents or employees.

Proportionality
The proposed impact fee is calculated based upon proportionality of projected growth with the greatest impact by residential areas, followed by commercial areas. The fees are calculated on a per dwelling unit for residential properties and on a per sq. ft. basis for commercial properties as the impact is more space based rather than unit based.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose a Fire Development Impact Fee. 5 Comparative Survey As part of this impact fee analysis, the project team conducted a comparative survey of surrounding jurisdictions who charge a Fire Impact Fee. The following table compares the City’s current fee and full cost for Fire to other surveyed jurisdictions in the region, which charge a fire impact fee: Table 47: Fire Impact Fee Comparative Survey Residential Non-Residential Jurisdiction Single-Family Multi-Family Retail – Per Sq. Ft Office – Per Sq. Ft Industrial – Per Sq. Ft Menifee – Current $665 $490 $0.46 $0.61 $0.23 Menifee – Full Cost $647 $506 $0.85 $2.36 $0.32 Corona $349 $466 $0.16 $0.16 $0.02 Eastvale $481 $332 $0.132 $0.137 $0.137 Hemet $560 $480 $0.24 $0.24 $0.056 Lake Elsinore $751 $612 $0.489 $0.337 $0.159 Murrieta $634 $444 $0.31 $0.40 $0.15 Perris $362 $328 $0.102 $0.102 $0.102 Temecula $920 $427 $0.24 $0.15 $0.15 The majority of the surveyed jurisdictions charge fees similar to Menifee, per dwelling unit for residential and per square foot for non-residential. Among the surveyed jurisdictions Lake Elsinore and Murrieta have a higher fee than Menifee’s current and full cost for residential (single-family) and no jurisdiction has higher fees for non-residential projects.

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All of the surveyed jurisdictions similar to Menifee, adopted a nexus analysis, and have been applying a cost factor to increase fees. The following table shows by jurisdiction, when the original nexus was adopted, and when the last fee amount was updated: Table 48: Comparative Survey Information Jurisdiction Date of Original Nexus Last Fee Update Corona N / A 2022 Eastvale 2012 2022 Hemet 2006 2021 Lake Elsinore 2016 2016 Murrieta N / A 2019 Perris 2006 2022 Temecula 2003 2022 As the table indicates, while the majority of the jurisdictions have updated fees, the nexus for those fees has not been reevaluated in a substantial time. The only jurisdiction that has done an analysis within the last 10 years is Lake Elsinore.

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7. Police The City of Menifee used to contract with Riverside County for Law Enforcement services until 2019. In 2019, the City formed its own Police department and therefore owns all police-related infrastructure. Hence, the City of Menifee assesses an impact fee to recover the costs associated with Police Infrastructure. The following subsections discuss the growth assumptions utilized, cost components included, resulting impact fee calculation, ability to meet the nexus criteria, and a comparative analysis of Police fees. 1 Growth Assumptions The Police Department serves both residential and commercial populations (employees). Future increased development would result in the need for expanded or relocated Police stations, additional equipment, and vehicles. The primary goal of the Police Department is to provide law enforcement services. These services benefit both existing and future development, therefore, to determine the proportionate share of existing and future development, the project team calculated the future service population for the City. An employee working within the City does not have the same tendency to use police services as a resident, as such their impact and weight should be proportionately less. The following table shows the current population for each category, the proportionate weight, and the equivalent residential population: Table 49: Future Weighted Service Population Increase Category Existing Population Projected Increase Weight Factor Weighted Population Increase Residential 103,617 44,355 1.00 44,355 Commercial 14,200 15,000 0.2113 3,150 TOTAL 117,817 59,375 47,505 As the table indicates, the projected increase in the service population is approximately 47,505, which reflects a 40% increase compared to the existing population. Therefore, future development should bear approximately 40% of the costs. 2 Cost Components and Assumptions Due to the projected increase in residential and non-residential population there will be an impact on the department’s infrastructure. The planning horizon for the impact fee is 24 years (2021 through 2045). A proportionate share of those upgrades should be borne 13 To calculate the employee weight factor, the project team utilized the 2021 YTD (Jan – Nov 30) proportion of police calls for service that are commercial relative to residential calls for service.

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by future development as future development will benefit from that equipment and facilities. The following table provides information regarding police equipment, vehicle, and facility costs based upon existing and planned facilities. All quantity, cost per unit calculations, and life cycle information was discussed with the City of Menifee Staff: Table 50: Police Equipment Costs Item Quantity Unit Cost Total Cost Lifecycle Avg Annual Cost EXISTING FLEET Bearcat 1 $228,379 $228,379 15 $15,225 Patrol Tahoe 30 $54,687 $1,640,603 5 $328,121 HLO / POP Trucks 3 $64,393 $193,179 5 $38,636 DUI Trailer 1 $33,646 $33,646 15 $2,243 CSI Van 1 $74,961 $74,961 10 $7,496 Motorcycles 5 $32,995 $164,975 5 $32,995 Traffic cars 2 $49,936 $99,873 5 $19,975 Community Service Truck 4 $42,946 $171,783 7 $24,540 Community service jail transport 1 $45,513 $45,513 5 $9,103 Undercover cars (Owned) 3 $61,516 $184,548 7 $26,364 Patrol K9 Vehicle 2 $71,230 $142,460 5 $28,492 Code Enforcement 5 $24,000 $120,000 7 $17,143 Miscellaneous vehicles 9 $35,000 $315,000 7 $45,000 Subtotal $595,332 PLANNED FLEET Commercial Enforcement Vehicle 1 $105,096 $105,096 10 $10,510 Mobile Command Post 1 $600,000 $600,000 20 $30,000 SWAT Equipment Truck 1 $300,000 $300,000 15 $20,000 Patrol Tahoe 30 $69,139 $2,074,185 5 $414,837 HLO / POP Trucks 2 $64,393 $128,786 5 $25,757 Motorcycles 2 $32,995 $65,990 5 $13,198 Traffic cars 2 $72,512 $145,023 5 $29,005 Community service jail transport 8 $60,789 $486,309 5 $97,262 Undercover cars (Owned) 4 $61,516 $246,065 7 $35,152 Patrol K9 Vehicle 2 $71,230 $142,460 5 $28,492 Miscellaneous vehicles 5 $40,000 $200,000 7 $28,571 Subtotal $732,784 RADIOS / CAMERAS - CURRENT In Car Dash Cameras 40 $13,093 $523,734 5 $104,747 Portable Radios 116 $6,798 $788,603 5 $157,721 Mobile Radios 62 $7,590 $470,611 5 $94,122 Subtotal $356,589 RADIOS / CAMERAS – PLANNED In Car Dash Cameras 20 $13,093 $261,867 5 $52,373 Portable Radios 50 $6,798 $339,915 5 $67,983 Mobile Radios 20 $7,590 $151,810 5 $30,362 Subtotal $150,718 FACILITY Facility / EOC 1 $42,500,000 $42,500,000 50 $850,0000 Subtotal $850,000 NEXUS ANALYSIS 1 $10,000 $10,000 5 $2,000 Item Title: 4.1
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The average annual cost for Police equipment is multiplied against the 24-year planning horizon to calculate the total cost associated with Police equipment based upon the categories of fleet, radios / cameras, facilities, and nexus analysis. The following table shows this calculation for the 24-year planning period: Table 51: Total Projected Infrastructure Cost – 24 years Category Average Annual Cost Planning Horizon Total Cost Current Fleet $595,332 24 $14,287,968 Fleet Needed $732,784 24 $17,586,816 Radios / Cameras – Current $356,589 24 $8,558,136 Radios / Cameras - Planned $150,718 24 $3,617,232 Facility Cost $850,000 24 $20,400,000 Nexus Analysis $2,000 24 $48,000 TOTAL $2,687,423 24 $64,498,152 Overall, in the next 24 years the Police Department will require approximately $64.5 million to meet the needs of existing and future populations of the City. In addition to the $64.5 million in costs, the other cost component to be considered is the administrative fee. For purposes of this study, the project team calculated the administrative fee based upon the total indirect costs allocated to the all Impact Fee funds from the FY 2022 Citywide Cost Allocation Plan and the average of the revenue collected by impact fee funds over the last three years. The following table shows this calculation: Table 52: Impact Fee – Admin Fee Calculation Category Impact Fee Funds Citywide Overhead $165,243 Impact Fee Revenue – 3 year average $5,877,779 ADMIN FEE RATE 2.80% The proposed administrative fee for all impact fees would be 2.80%, which is higher than the current 2.50% administrative fee. This 2.80% accounts for support provided by City staff in the monitoring and reporting of impact fee funds. 3 Impact Fee Calculations As the previous section calculated, the total infrastructure needs for the Police Department are approximately $64.5 million. However, not all of this cost should be borne by the future population. Based upon the growth assumptions analysis, 40% of these costs should be borne by the future population. The following table shows the calculation for costs to be borne by future residential and non-residential populations:

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Table 53: Projected Cost Calculation Between Existing and Future Population Category Infrastructure Costs Proportion Total Cost to Be Borne Current Population $64,498,152 60% $38,698,891 Future Population $64,498,152 40% $25,799,261 Of the $64.5 million, $25.8 million should be borne by the future population. This $25.8 million is split between residential and commercial based upon the proportion of calls for service for residential and commercial. The following table shows by future population cost, the proportion between residential and commercial to show the total cost: Table 54: Projected Cost for New Development – Residential and Commercial Category Infrastructure Costs Proportion of Calls for Service Total Cost to Be Borne Residential $25,799,261 79% $20,381,416 Commercial $25,799,261 21% $5,417,845 Approximately $20.4 million of the $25.8 million is residential and the remaining $5.4 million is commercial-related. The $20.4 and $5.4 million is divided by the total projected population increase, to calculate the cost per capita, as shown in the following table: Table 55: Projected Cost for New Development – Per Capita Category Infrastructure Costs Projected Population Increase Cost / Capita Residential $20,381,416 44,355 $460 Commercial $5,417,845 15,000 $361 The cost per capita from this table was converted into a cost per dwelling unit and cost per sq. ft. based upon the density factors discussed in the projected growth and development chapter. The following table shows this calculation: Table 56: Police Impact Fee Calculation Category Cost Per Capita Density Impact Fee Residential Single-Family $460 2.94 $1,352 per dwelling unit Multi-Family $460 2.30 $1,058 per dwelling unit Non-Residential Commercial / Retail $361 550 $0.66 per sq. ft. Office $361 200 $1.81 per sq. ft. Industrial $361 1,500 $0.24 per sq. ft. As the table above indicates, the cost per dwelling unit varies from a low of $1,058 for multi-family to a high of $1,352 for single-family homes. The fees for commercial and non-residential vary from a low of $0.24 per square foot for industrial to a high of $1.81 Item Title: 4.1
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per square foot for office properties. To calculate the full allowable fee, the 2.80% administrative fee is applied to the impact fee. The following table shows this calculation: Table 57: Police Impact Fee Calculation Including Administrative Fee Category Impact Fee Admin Fee Total Impact Fee Residential Single-Family $1,352 $38 $1,390 per dwelling unit Multi-Family $1,058 $30 $1,088 per dwelling unit Commercial / Non-Residential Commercial / Retail $0.66 $0.02 $0.68 per sq. ft. Office $1.81 $0.05 $1.86 per sq. ft. Industrial $0.24 $0.01 $0.25 per sq. ft. The addition of the administrative fee captures the full cost associated with the proportionate impact of future development. The following table compares the current Police Impact Fee to the fire full cost impact fee, and the associated surplus / (deficit). Table 58: Police Impact Fee – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Residential (per dwelling unit) Single-Family $250 $1,390 ($1,140) Multi-Family $183 $1,088 ($905) Commercial / Non-Residential (per square foot) Commercial / Retail $0.06 $0.68 ($0.62) Office $0.08 $1.86 ($1.78) Industrial $0.03 $0.25 ($0.22) As the table indicates, all current impact fees are under-recovering compared to the full cost. The primary reason for the significant difference in impact fees is due to the current fees being based on the analysis when infrastructure was not owned, but contracted out, as such there was minimal cost included in the previous analysis. The current analysis considers all equipment and facility needs. 4 Nexus Criteria As discussed in the legal framework section, in order for an impact fee to be implemented it must meet all five of the nexus criteria as established per the Mitigation Fee Act. The following table outlines each criterion point, and how the proposed Police Impact fee meets the Mitigation Fee Act criteria.

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Table 59: Police Impact Fees Nexus Criteria Criteria Meet Don’t Meet Purpose of Fee The purpose of the fee would be to upgrade existing Police headquarters, as well as purchase and replace police vehicles and equipment.

Use of Fee Revenue The Police Department has detailed capital improvement plans that outline the utilization of this fee revenue for current and future years to help ensure that there is appropriate expansion of police facilities and equipment to meet the public safety goals of the City.

Benefit Relationship
The use of the impact fee revenue would be to build a new EOC facility and headquarters as well as to accommodate the appropriate number of vehicles that are needed to provide public safety services. New residents and employees receive benefits from increased equipment and more efficient response times.

Impact Relationship
The addition of new residents and employees would have an impact on the ability of the Police department to respond adequately, including in an efficient manner. Therefore, the cost associated with adding additional equipment or expanding facilities to accommodate additional staff to allow for responses should be borne by new residents or employees.

Proportionality
The proposed impact fee is calculated based upon proportionality of projected growth with the greatest impact by residential areas, followed by commercial areas. The fees are calculated on a per dwelling unit for residential properties and on a per sq. ft. basis for commercial properties as the impact is more space based rather than unit based.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose a Police Development Impact Fee. 5 Comparative Survey As part of this impact fee analysis, the project team conducted a comparative survey of surrounding jurisdictions who charge a Police Impact Fee. The following table compares the City’s current fee and full cost to other surveyed jurisdictions in the region, which charge a police impact fee:

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Table 60: Police Impact Fee Comparative Survey Residential Non-Residential Jurisdiction Single-Family Multi-Family Retail – Per Sq. Ft Office – Per Sq. Ft Industrial – Per Sq. Ft Menifee – Current $250 $183 $0.06 $0.08 $0.03 Menifee – Full Cost $1,390 $1,088 $0.68 $1.86 $0.25 Corona $212 $366 $0.18 $0.18 $0.01 Hemet $471 $404 $0.223 $0.223 $0.013 Murrieta $597 $417 $0.13 $0.17 $0.06 Perris $59 $54 $0.017 $0.017 $0.017 Temecula $686 $388 $0.39 $0.09 $0.07 The majority of the surveyed jurisdictions charge fees similar to Menifee, per dwelling unit for residential and per square foot for non-residential. Among the surveyed jurisdictions Menifee’s current fee is in line with Corona but lower than Hemet. Its full cost fee is higher than all other surveyed jurisdictions. Other than City of Perris, all other surveyed jurisdictions have in-house police departments. All of the surveyed jurisdictions similar to Menifee, adopted a nexus analysis, and have been applying a cost factor to increase fees. The following table shows by jurisdiction, when the original nexus was adopted, and when the last fee amount was updated: Table 61: Comparative Survey Information Jurisdiction Date of Original Nexus Last Fee Update Corona N / A 2022 Eastvale 2012 2022 Hemet 2006 2021 Lake Elsinore 2016 2016 Murrieta N / A 2019 Perris 2006 2022 Temecula 2003 2022 As the table indicates, while the majority of the jurisdictions have updated fees, the nexus for those fees has not been reevaluated in a substantial time. The only jurisdiction that has done an analysis within the last 10 years is Lake Elsinore.

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8. Parks and Recreation The City of Menifee provides Parks and Recreation services through its many parks and recreation centers. The City currently assess three different types of Parks and Recreation fees: 1. Public Use Facilities: This is in relation to the recreation center(s) that are to be built and rehabilitated within the City of Menifee. 2. Parks – Land Improvements: This is in relation to developing any land or land acquisitions (outside of the Quimby process) for parks. 3. Parks – Improvements: This is in relation to any park facility improvements such as playground equipment, benches, etc. Through this study it was proposed that these three fees should be consolidated into a singular Parks and Recreation Impact Fee, which would cover all infrastructure. Additionally, any land acquisition costs were removed as those are intended to be funded through the Quimby fee. The following subsections discuss the growth assumptions utilized, cost components included, resulting impact fee calculation, ability to meet the nexus criteria, and a comparative analysis of Parks and Recreation Impact fees. 1 Growth Assumptions The Community Services Department or Parks and Recreation primarily serves the residential population within the City of Menifee. While non-residents may utilize park facilities, for the strongest nexus, only residential population growth has been factored into this analysis. Future increased development would result in the need for expanded facilities, newer equipment, and new parks. The current recreation facilities benefit both existing and future development and to determine the proportionate share of existing and future development, the project team calculated the future service population for the City. The following table shows the current population, the future population, and the projected increase: Table 62: Future Population Increase Category Existing Population 2045 Population Population Increase Residential 103,617 147,972 44,355 As the table indicates, the projected increase in the residential population is approximately 44,000, which reflects approximately a 43% increase compared to the Item Title: 4.1
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existing population. Therefore, future development should bear approximately 43% of the costs. 2 Cost Components and Assumptions Due to the projected increase in residential population there will be an impact on the department’s infrastructure. The City of Menifee last completed a Parks Master Plan in 2016 and is currently in the process of updating this Master Plan. The project team worked with City staff to identify projects from the Master Plan that had been completed and others that had been identified to be done based upon population growth. Additional projects beyond the master plan were also identified. The following table shows by project type, the proposed amount: Table 63: Parks Identified Projects Item Total Cost Community Center 2.18 Acres (Juanita / Goetz) $1,500,000 Evans Park $13,200,000 Utility Corridor Trail $5,000,000 Future Sun City Park Development $7,000,000 Future Park Development as identified in Section 5.5 of the Parks, Trails, Recreation and Open Space Master Plan Approved in 2016 $15,000,000 Menifee Community Center (Menifee/La Piedra) $11,500,000 Salt Creek Trail Maintenance & Connectivity - Feasibility $250,000 Salt Creek Trail Parking & Future Improvements $2,000,000 Purchase of Portsmouth/Hartwick 2 Acres $2,060,000 Energy Efficient Lighting $250,000 Shade Sails $365,000 EL Pete Peterson Dog Park Expansion $350,000 Park Amenity Enhancements - includes replacement and addition of playgrounds, exercise equipment, benches, picnic tables and other amenities at existing park sites. $275,000 Nexus Analysis $48,00014 TOTAL COST $58,798,000 Overall, the Community Services Department will require approximately $58.8 million to meet the needs of existing and future populations of the City. This need is for the projection of the Master Plan which is approximately 25 years. In addition to the $58.8 million in costs, the other cost component to be considered is the administrative fee. For purposes of this study, the project team calculated the administrative fee based upon the total indirect costs allocated to all Impact Fee funds from the FY 2022 Citywide Cost Allocation Plan and the average of the revenue collected by impact fee funds over the last three years. The following table shows this calculation: 14 Represents an average cost of $10,000 for every 5 years, which is $2,000 per year. The $2,000 per year is multiplied by 24 years (the planning horizon) to come up with the $48,000 nexus amount.

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Table 64: Impact Fee – Admin Fee Calculation Category Impact Fee Funds Citywide Overhead $165,243 Impact Fee Revenue – 3 year average $5,877,779 ADMIN FEE RATE 2.80% The proposed administrative fee for all impact fees would be 2.80%, which is higher than the current 2.50% administrative fee. This 2.80% accounts for support provided by City staff in the monitoring and reporting of impact fee funds. 3 Impact Fee Calculations As the previous section calculated, the total infrastructure needs for Parks and Recreation are approximately $58.8 million. However, not all of this cost should be borne by the future population. Based upon the growth assumptions analysis, 43% of these costs should be borne by the future population. The following table shows the calculation for costs to be borne by future residential populations: Table 65: Projected Cost Calculation Between Existing and Future Population Category Infrastructure Costs Proportion Total Cost to Be Borne Current Population $58,798,000 57% $33,514,860 Future Population $58,798,000 43% $25,283,140 Of the $58.8 million, $25.3 million should be borne by the future population. This $25.3 million is divided by the total projected population increase, to calculate the cost per capita, as shown in the following table: Table 66: Projected Cost for New Development – Per Capita Category Infrastructure Costs Projected Population Increase Cost / Capita Residential $25,283,140 44,355 $570 The cost per capita from this table was converted into a cost per dwelling unit based upon the density factors discussed in the projected growth and development chapter. The following table shows this calculation: Table 67: Parks and Recreation Impact Fee Calculation Category Cost Per Capita Density / Unit Impact Fee Single-Family $570 2.94 $1,676 per dwelling unit Multi-Family $570 2.30 $1,311 per dwelling unit As the table indicates, the cost per dwelling unit varies from a low of $1,311 for multi-family to a high of $1,676 for single-family homes. To calculate the full allowable fee, the Item Title: 4.1
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2.80% administrative fee is applied to the impact fee. The following table shows this calculation: Table 68: Parks and Recreation Impact Fee Calculation Including Administrative Fee Category Impact Fee Admin Fee Total Impact Fee Single-Family $1,676 $47 $1,723 per dwelling unit Multi-Family $1,311 $37 $1,348 per dwelling unit The addition of the administrative fee captures the full cost associated with the proportionate impact of future development. The following table compares the current Parks and Recreation Impact Fees to the full cost impact fees, and the associated surplus / (deficit). Table 69: Parks and Recreation Impact Fee – Current vs. Full Cost Category Current Fee15 Full Cost Fee Surplus / (Deficit) Single-Family $1,116 $1,723 ($607) Multi-Family $822 $1,348 ($526) As the table indicates, all impact fees are under-recovering compared to the full cost. 4 Nexus Criteria As discussed in the legal framework section, in order for an impact fee to be implemented it must meet all five of the nexus criteria as established per the Mitigation Fee Act. The following table outlines each criterion point, and how the proposed Parks and Recreation Impact fee meets the Mitigation Fee Act criteria. Table 70: Parks and Recreation Impact Fees Nexus Criteria Criteria Meet Don’t Meet Purpose of Fee The purpose of the fee would be to fund the development of new parks and recreation facilities and improving existing playground areas.

Use of Fee Revenue The City has capital improvement plans that outline the utilization of this fee revenue for current and future years to help ensure that there is appropriate expansion and development of parks and recreation facilities and areas to meet current and future resident needs.

15 The current fee includes all three Parks and Recreation Impact Fees – Public Use, Parks – Land Improvements, and Parks – Improvements.

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Criteria Meet Don’t Meet
Benefit Relationship
The use of the impact fee revenue would be to develop new facilities or expand or improve existing facilities, which would be directly proportional to the increased wear and tear and use of parks and recreation facilities as there is new residential growth in the City. The increase in residential population is related to the number of dwelling units and the impact fee would be applicable to dwelling units.

Impact Relationship Based upon the current and proposed parks and recreation facility needs in the City, the addition of new residents would require the need for new and expanded facilities.

Proportionality The proposed impact fee would be a flat fee per dwelling unit depending upon the density of the housing units to capture the residential impacts as the primary mechanism for addition of residential population to the City is through increased dwelling units.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose a Parks and Recreation Development Impact Fee. 5 Comparative Survey As part of this impact fee analysis, the project team conducted a comparative survey of surrounding jurisdictions who charge a Parks and Recreation Impact Fee. The following table compares the City’s current fee and full cost for Parks and Recreation to other surveyed jurisdictions in the region, which charge a parks and recreation impact fee: Table 71: Parks and Recreation Impact Fee Comparative Survey Jurisdiction Single-Family Multi-Family Menifee – Current $1,116 $822 Menifee – Full Cost $1,723 $1,348 Corona $311 $218 Hemet $1,453 $1,247 Lake Elsinore $2,145 $1,722 Murrieta $5,127 $3,582 Perris $9,468 $8,397 Temecula $4,426 $3,171 The fees charged by the surrounding jurisdictions vary quite dramatically from lows of $311 to a high of $8,348. Menifee’s current fee is on the lower end of the average for the surrounding jurisdictions. It is important to note that many jurisdictions may include land acquisition costs in their Parks Impact Fees, hence the high dollar value associated with Item Title: 4.1
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those fees. The City of Menifee utilizes the Quimby Fee (not evaluated in this analysis) for the purposes of land acquisition. All of the surveyed jurisdictions similar to Menifee, adopted a nexus analysis, and have been applying a cost factor to increase fees. The following table shows by jurisdiction, when the original nexus was adopted, and when the last fee amount was updated: Table 72: Comparative Survey Information Jurisdiction Date of Original Nexus Last Fee Update Corona N / A 2022 Eastvale 2012 2022 Hemet 2006 2021 Lake Elsinore 2016 2016 Murrieta N / A 2019 Perris 2006 2022 Temecula 2003 2022 As the table indicates, while the majority of the jurisdictions have updated fees, the nexus for those fees has not been reevaluated in a substantial time. The only jurisdiction that has done an analysis within the last 10 years is Lake Elsinore.

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9. Transportation The City of Menifee currently assesses a transportation impact fee on new residential and commercial development projects within the City. The impact fee accounts for transportation-related improvements – roadways, traffic signals, transportation master plans, etc. The following subsections discuss the growth assumptions and standards utilized, cost assumptions and components, impact fee calculation, ability to meet the nexus criteria, and a comparative survey of transportation impact fees. 1 Growth Projections The Transportation Impact Fee is based upon the future demand on transportation infrastructure due to new residents and employees moving into the City. The future demand is based upon the projected growth for the City. The projected growth section of this report discusses the residential and employment growth anticipated. The residential and employment growth is converted into number of dwelling units or total KSF (Thousand Square Feet) based upon density factors. The following table shows the calculation for current and future projected growth: Table 73: Projected Residential and Commercial Growth Category Avg Density Current Population (2021) Current (2021)16 Projected Population Projected Growth (2045) Single-Family 2.94 91,815 31,230 131,118 44,598 Multi-Family 2.30 11,802 5,131 16,854 7,328 Comm. / Retail 550 4,268 3,857,000 7,300 4,015,000 Office 200 8,827 1,126,000 5,840 1,168,000 Industrial 1,500 1,105 2,337,000 16,060 24,090,000 The current and projected growth calculations were multiplied against the average trip rate (based upon ITE Land Use Categories) to estimate the number of current and projected trips. Table 74: Projected Residential and Commercial Growth Category Trip Rate Current (2021) Current Trips Projected Growth (2045) Projected Trips Increase in Trips Single-Family 0.99 31,230 30,918 44,598 44,152 13,234 Multi-Family 0.50 5,131 2,634 7,524 3,664 1,098 Comm. / Retail 2.41 3,857,000 9,304 4,015,000 9,686 382 Office 1.15 1,126,000 1,295 1,168,000 1,343 48 Industrial 0.65 2,337,000 1,519 24,090,000 15,659 14,140 TOTAL 45,602 74,504 28,902 16 This column shows total dwelling units (Single and Multi-Family) Item Title: 4.1
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Based upon the average trip rate, the expected growth the number of trips is 28,902. However, to determine the proportion borne by new development, the 28,902 trips were divided by the total future trips (74,504) to arrive at 39% to represent the proportionate impact associated with new development. 2 Cost Components and Assumptions The Transportation Impact Fee is used to fund transportation related improvements. City staff developed a comprehensive listing of transportation improvement projects that would benefit both existing and new development within the City. The detailed project listing is included as an appendix to this report. The following table lists by major project category, the total costs associated with the project: Table 75: Transportation Improvement Costs Category Total Project Cost Signals $46,912,500 Traffic Project List $282,612,846 Intersection Realignment $5,000,000 Grade Separation $16,000,000 Bridge $15,000,000 Interchange $151,250,000 Nexus Analysis $48,000 TOTAL $516,823,346 The total cost of Transportation Improvement infrastructure costs is approximately $516 million. It is important to note that not all $516 million should be borne by new development as these proposed projects will also benefit existing residents. In addition to the $516 million in costs, the other cost component to be considered is the administrative fee. For purposes of this study, the project team calculated the administrative fee based upon the total indirect costs allocated to all Impact Fee funds from the FY 2022 Citywide Cost Allocation Plan and the average of the revenue collected by impact fee funds over the last three years. The following table shows this calculation: Table 76: Impact Fee – Admin Fee Calculation Category Impact Fee Funds Citywide Overhead $165,243 Impact Fee Revenue – 3 year average $5,877,779 ADMIN FEE RATE 2.80% Item Title: 4.1
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The proposed administrative fee for all impact fees would be 2.80%, which is higher than the current 2.50% administrative fee. This 2.80% accounts for support provided by City staff in the monitoring and reporting of impact fee funds. 3 Impact Fee Calculation While the Transportation Impact Fee is based upon the total transportation improvements within the City, the full $516 million is not intended to be borne by new development. Therefore, the project team utilized the 39% growth projection, which correlates to overall projected growth in estimated number of trips, to determine the proportional amount associated with new development. The following table multiplies the total project cost by new growth proportional amount to determine the cost to be borne by new development: Table 77: Transportation Impact Costs to be Borne by New Development Category Total Project Cost New Growth New Development Cost Signals $46,912,500 39% $18,295,875 Traffic Project List $282,612,846 39% $110,219,010 Intersection Realignment $5,000,000 39% $1,950,000 Grade Separation $16,000,000 39% $6,240,000 Bridge $15,000,000 39% $5,850,000 Interchange $151,250,000 39% $58,987,500 Nexus Analysis $48,000 39% $18,720 TOTAL $516,823,346 $201,561,105 Of the $516 million, only $201.6 million is associated with new development. The total allocated costs to new development is then converted into a cost per trip by taking the total new development cost and dividing it by the projected number of trips. The following table shows the cost for new development, the total projected trips, and the cost per trip: Table 78: Transportation Cost Per Trip Total Allocated Cost Projected Trips Cost Per Trip $201,561,105 28,902 $6,974 The cost per trip is $6,967. The cost per trip is converted into the impact fee by multiplying it against the ITE established trip rate. The following table shows by land use type, the cost per trip, the trip rate, and the resulting impact fee: Table 79: Transportation Impact Fee Calculation Category Cost Per Trip Trip Rate Impact Fee Residential Single-Family $6,974 0.99 $6,904 per dwelling unit Multi-Family $6,974 0.5 $3,487 per dwelling unit Item Title: 4.1
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Category Cost Per Trip Trip Rate Impact Fee Non-Residential Commercial / Retail $6,974 2.41 $16,824 per 1,000 sq. ft. Office $6,974 1.15 $8,020 per 1,000 sq. ft. Industrial $6,974 0.65 $4,533 per 1,000 sq. ft. As the ITE trip rates are based upon 1,000 sq. ft. for commercial / non-residential, the fees were calculated on a per 1,000 sq. ft. basis. However, for simplicity purposes, the fees were converted to per sq. ft. by taking the dollar amount and dividing it by 1,000 (e.g., $16,824 divided by 1,000 = $16.8217). The admin fee of 2.80% was then multiplied by the Transportation Impact Fee (TIF) to determine the administrative fee component. The administrative fee component was then added to the baseline TIF to arrive at the full cost TIF by category. The following table shows by category, the TIF, the admin fee, and the resulting full cost TIF: Table 80: Transportation Impact Fee Calculation Including Administrative Fee Category Impact Fee Admin Fee Total Impact Fee Residential (per dwelling unit) Single-Family $6,904 $193 $7,097 per dwelling unit Multi-Family $3,487 $98 $3,585 per dwelling unit Commercial / Non-Residential (per sq. ft.) Retail $16.82 $0.47 $17.29 per sq. ft. Commercial / Office $8.02 $0.22 $8.24 per sq. ft. Industrial $4.53 $0.13 $4.66 per sq. ft. The addition of the administrative fee captures the full cost associated with the proportionate impact of future development. The following table compares the current Traffic Impact Fee to the full cost impact fee, and the associated surplus / (deficit). Table 81: Transportation Impact Fee – Current vs. Full Cost Category Current Fee Full Cost Fee Surplus / (Deficit) Residential (per dwelling unit) Single-Family $5,060 $7,097 ($2,037) Multi-Family $3,534 $3,585 ($51) Commercial / Non-Residential (per square foot) Retail $8.38 $17.29 ($8.91) Commercial / Office $6.44 $8.24 ($1.80) Industrial $4.27 $4.66 ($0.39) As the table indicates, all current impact fees are under-recovering compared to the full cost. The increase in the impact fees is due to increased transportation projects and needs due to the anticipated growth within the City. 17 It equals $16.807, but it was rounded to two decimals to $16.81.

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4 Nexus Criteria As discussed in the legal framework section, in order for an impact fee to be implemented it must meet all five of the nexus criteria as established per the Mitigation Fee Act. The following table outlines each criterion point, and how the proposed Transportation Impact fee meets the Mitigation Fee Act criteria. Table 82: Transportation Impact Fees Nexus Criteria Criteria Meet Don’t Meet Purpose of Fee The fee would be used to fund the development of new transportation improvement measures and improve existing transportation-related needs.

Use of Fee Revenue
The City has capital improvement plans and transportation specific plans that outline the utilization of this fee revenue for current and future years to help ensure that there is appropriate expansion and development of transportation-related measures to meet current and future resident and employee needs.

Benefit Relationship
The use of the impact fee revenue would be to enhance existing roadways or add new traffic measures, which would be directly proportional to the increased wear and tear and use of City infrastructure as there is new residential and commercial growth in the City. The increase in residential population is related to the number of dwelling units and the impact fee would be applicable to dwelling units. The increase in employment is related to non-residential space and is applicable to square footage.

Impact Relationship Based upon the current transportation needs in the City, the addition of new residents and employees would require the need for upgraded roadways and facilities.

Proportionality
The proposed impact fee would be a flat fee per dwelling unit depending upon the density of the housing units to capture the residential impacts, as the primary mechanism for addition of residential population to the City is through increased dwelling units. For employees the fee is based upon non-residential square footage as that is the primary mechanism associated with increases in employment within the City.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose a Transportation Development Impact Fee.

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5 Comparative Survey As part of this impact fee analysis, the project team conducted a comparative survey of surrounding jurisdictions who charge a Transportation Impact Fee. The following table compares the City’s current fee and full cost to other surveyed jurisdictions in the region, which charge a transportation impact fee: Table 83: Transportation Impact Fee Comparative Survey Residential Non-Residential Jurisdiction Single-Family Multi-Family Retail – Per Sq. Ft Office – Per Sq. Ft Industrial – Per Sq. Ft Menifee – Current $5,060 $3,534 $8.38 $6.44 $4.27 Menifee – Full Cost $7,097 $3,585 $17.29 $8.24 $4.66 Corona $4,047 $3,238 $1.98 $0.95 $0.42 Eastvale $693 $487 $1.685 $0.373 $0.352 Hemet $2,948 $2,030 $4.47 $4.47 $0.74 Lake Elsinore $1,369 $959 $3.84 $1.45 $0.81 Murrieta $6,532 $4,539 $9.09 $6.93 $0.99 Perris $4,025 $2,817 $5.23 $5.23 $5.23 Temecula $3,062 $2,143 $11.71 $7.02 $4.21 The majority of the surveyed jurisdictions charge fees similar to Menifee, per dwelling unit for residential and per square foot for non-residential. Among the surveyed jurisdictions Menifee’s current fee is higher than all other surveyed jurisdictions with the exception of Murrieta. All of the surveyed jurisdictions similar to Menifee, adopted a nexus analysis, and have been applying a cost factor to increase fees. The following table shows by jurisdiction, when the original nexus was adopted, and when the last fee amount was updated: Table 84: Comparative Survey Information Jurisdiction Date of Original Nexus Last Fee Update Corona N / A 2022 Eastvale 2012 2022 Hemet 2006 2021 Lake Elsinore 2016 2016 Murrieta N / A 2019 Perris 2006 2022 Temecula 2003 2022 As the table indicates, while the majority of the jurisdictions have updated fees, the nexus for those fees has not been reevaluated in a substantial time. The only jurisdiction that has done an analysis within the last 10 years is Lake Elsinore.

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10. Storm Drain The City of Menifee currently assesses two different Storm Drain Impact Fees depending upon the region of the City. The City recently went through a Master Drainage Plan, and the plan identified sub-basins and watersheds for the City. It was determined through this study, that the information from the Master Drainage Plan should be utilized as the basis of assessing the fee, and that the most accurate impact would be based upon the sub-basin and watershed. Appendix A of this report shows the Map from the Master Drainage Plan. The impact fee accounts for upgrades and acquisition of new storm drain facilities. The following subsections discuss the growth assumptions and standards utilized, cost assumptions and components, impact fee calculation, ability to meet the nexus criteria, and a comparative survey of Storm Drain impact fees. 1 Growth Projections The project team worked with staff in Public Works and the City’s GIS staff to determine the current population by sub-basin and watershed, and the projected population. Information from the City’s current land use element showing the built-out projections for the City were used as the baseline for current and future growth. The projections were based upon acreage of development, which was converted into dwelling units or square feet based upon the City’s current density for those land use types. The dwelling units and square feet were converted into equivalent dwelling units (EDUs) based upon the impervious coefficient per acre. The following table shows the EDU Demand Factor Calculation: Table 85: EDU Demand Factor Calculation Major Land Use Impervious Coeff. Per Acre18 DU or KSF per acre19 Impervious Factor per DU or KSF20 EDU Demand Factor21 Single-Family 0.50 4.64 0.11 1.00 Multi-Family 0.65 16.67 0.04 0.36 Retail 0.90 9.99 0.09 0.84 Office 0.90 15.04 0.06 0.56 Industrial 0.90 17.67 0.05 0.47 18 The same coefficient from the previous study was utilized as it was determined to be appropriate per the most recent Master Drainage Plan. 19 This information comes from the City’s Land Use Element and incorporates the averages across all the different types of potential categories within that major land use category. 20 This is calculated by taking the Impervious Coefficient and dividing it by the DU or KSF per acre. For example, 0.50 divided by 4.64 = 0.11. 21 This is used to determine proportionality between Single-Family and all other land use categories.

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The EDU Demand factor is used to calculate the current and built-out projected growth by major land use type. The following table shows the calculation for current and future projected growth based upon Sub-Basin and Watershed: Table 86: Projected Residential and Commercial Growth – by Sub-Basin and Watershed and Land Use Sub-Basin Land Use Type Current EDU Growth Built-out EDU Growth Difference A_A Retail 297.73 361.01 63.28 A_A Single Family 806.92 1,092.52 285.60 A_B Multi-Family 9.65 86.06 76.41 A_B Office 29.33 34.61 5.28 A_B Retail 221.19 491.87 270.68 A_B Single Family 1,525.14 3,016.88 1,491.74 A_C Multi-Family 45.07 242.78 197.71 A_C Office 136.96 620.65 483.68 A_C Retail 206.09 933.91 727.82 A_C Single Family 1,398.26 1,499.95 101.69 B_A Multi-Family 30.30 304.19 273.90 B_A Single Family 2,729.08 3,613.86 884.79 B_A Office 1,888.80 7,106.25 5,217.45 B_A Retail 2,273.72 8,554.43 6,280.71 B_A Industrial 2,571.52 9,674.86 7,103.33 B_B Multi-Family 56.20 186.86 130.66 B_B Single Family 1,635.26 1,987.95 352.69 F_A Multi-Family 203.01 428.00 224.99 F_A Office 633.71 1,273.63 639.93 F_A Retail 1,580.87 2,688.12 1,107.25 F_A Single Family 2,375.99 3,384.67 1,008.69 F_C Multi-Family - 76.36 76.36 F_C Single Family 1,499.02 1,643.06 144.04 F_E Multi-Family 668.22 723.46 55.23 F_E Office 652.21 889.98 237.77 F_E Retail 1,200.02 1,797.81 597.79 F_E Single Family 1,760.63 2,172.42 411.78 Grand Total 26,807.85 56,289.32 29,481.47 As the table indicates overall there is expected to be a growth of approximately 29,481 EDUs between current and built-out Menifee by Sub-Basin and Watershed. This represents a 110% increase. However, as the Master Drainage Plan is specific to the sub-basin and watershed, the project team calculated the specific growth percentage for each sub-basin and watershed. The following table shows this calculation: Table 87: Projected Residential and Commercial Growth – by Sub-Basin and Watershed and Land Use Sub-Basin Current EDU Growth Built-out EDU Growth Difference % Growth A_A 1,104.65 1,453.53 348.88 32% A_B 1,785.31 3,629.42 1,844.11 103% Item Title: 4.1
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Sub-Basin Current EDU Growth Built-out EDU Growth Difference % Growth A_C 1,786.38 3,297.28 1,510.90 85% B_A 9,188.18 28,105.20 18,917.02 211% B_B 1,691.47 2,174.81 483.35 29% F_A 4,793.57 7,774.42 2,980.85 62% F_C 1,499.02 1,719.42 220.40 15% F_E 4,281.08 5,583.66 1,302.58 30% Based upon the consolidated sub-basin and watershed, the projected growth varies from a low of 10% for Sub-Basin A and Watershed A_C to a high of 211% for B_A. These specific growth percentages were utilized to attribute the cost to new development. 2 Cost Components and Assumptions The Storm Drain Impact Fee is used to fund storm drain facility improvements. The Master Drainage Plan identified the top 25 projects for the City for storm drain facilities at the Sub-Basin and Watershed level. The detail of these projects has been provided as an appendix. The following table lists by Sub-Basin, the total project cost: Table 88: Storm Drain Improvement Costs Sub-Basin and Watershed Total Project Cost A_A $10,600,000 A_B $466,000 A_C $8,116,000 B_A $13,300,000 B_B $3,090,000 F_A $650,000 F_C $2,900,000 F_E $2,000,000 TOTAL $41,122,000 The total cost of Storm Drain Improvement infrastructure costs is approximately $41.1 million. It is important to note that not all $41.1 million should be borne by new development as these proposed projects will also benefit existing residents. In addition to the $41.1 million in costs, the other cost component to be considered is the administrative fee. For purposes of this study, the project team calculated the administrative fee based upon the total indirect costs allocated to all Impact Fee funds from the FY 2022 Citywide Cost Allocation Plan and the average of the revenue collected by impact fee funds over the last three years. The following table shows this calculation: Table 89: Impact Fee – Admin Fee Calculation Category Impact Fee Funds Citywide Overhead $165,243 Impact Fee Revenue – 3 year average $5,877,779 ADMIN FEE RATE 2.80% Item Title: 4.1
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The proposed administrative fee for all impact fees would be 2.80%, which is higher than the current 2.50% administrative fee. This 2.80% accounts for support provided by City staff in the monitoring and reporting of impact fee funds. 3 Impact Fee Calculation While the Storm Drain Impact Fee is based upon the total storm drain improvements within the City, the full $41.1 million is not intended to be borne by new development. Therefore, the project team utilized the specific growth projection percentages for each sub-basin and watershed, to determine the proportional amount associated with new development. The following table multiplies the total project cost by new growth proportional amount to determine the cost to be borne by new development: Table 90: Transportation Impact Costs to be Borne by New Development Sub-Basin / Watershed Total Project Cost New Growth New Development Cost A_A $10,600,000 32% $3,392,000 A_B $466,000 100%22 $466,000 A_C $8,116,000 10% $6,898,600 B_A $13,300,000 100%23 $13,300,000 B_B $3,090,000 29% $896,100 F_A $650,000 48% $403,000 F_C $2,900,000 15% $435,000 F_E $2,000,000 36% $600,000 TOTAL $41,122,000 $26,390,700 Of the $41.1 million, only $26.4 million is associated with new development. The total allocated costs to new development is then converted into a cost per EDU by taking the total new development cost and dividing it by the projected number of EDU’s expected to increase for that sub-basin and watershed. The following table shows by sub-basin and watershed the cost for new development, the total projected EDUs, and the cost per trip: Table 91: Transportation Cost Per Trip Sub-Basin / Watershed Total Allocated Cost Projected EDU’s Cost per EDU A_A $3,392,000 348.88 $9,723 A_B $466,000 1,844.11 $253 A_C $6,898,600 1,510.90 $4,566 B_A $13,300,000 20,790.39 $640 B_B $896,100 483.35 $1,854 F_A $403,000 2,980.85 $135 F_C $435,000 220.40 $1,974 F_E $600,000 1,302.58 $461 22 It is anticipated that there is 103% growth in this sub-basin / watershed, so all of the need for that sub-basin / watershed would be due to the new development in that area. 23 It is anticipated that there is 211% growth in this sub-basin / watershed, so all of the need for that sub-basin / watershed would be due to the new development in that area.

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As the table indicates the cost per EDU varies from a low of $135 for Sub-Basin and Watershed F_A to a high of $9,723 for Sub-Basin and Watershed A_A. The cost per EDU is then multiplied by the EDU Demand Factor for each land use type to determine the cost per dwelling unit or cost per 1,000 square feet. The following table shows by sub-basin and watershed, land use type, the cost per EDU, the EDU Demand factor, and the resulting impact fee: Table 92: Storm Drain Impact Fee Calculation Category Cost Per EDU EDU Factor Impact Fee A_A Single-Family $9,723 1.00 $9,723 per dwelling unit Multi-Family $9,723 0.36 $3,522 per dwelling unit Comm. / Retail $9,723 0.84 $8,134 per 1,000 sq. ft. A_B Single-Family $253 1.00 $253 per dwelling unit Multi-Family $253 0.36 $92 per dwelling unit Comm. / Retail $253 0.84 $212 per 1,000 sq. ft. Office $253 0.56 $141 per 1,000 sq. ft. A_C Single-Family $4,566 1.00 $4,566 per dwelling unit Multi-Family $4,566 0.36 $1,654 per dwelling unit Comm. / Retail $4,566 0.84 $3,820 per 1,000 sq. ft. Office $4,566 0.56 $2,539 per 1,000 sq. ft. B_A Single-Family $640 1.00 $640 per dwelling unit Multi-Family $640 0.36 $232 per dwelling unit Comm. / Retail $640 0.84 $535 per 1,000 sq. ft. Office $640 0.56 $356 per 1,000 sq. ft. Industrial $640 0.47 $303 per 1,000 sq. ft. B_B Single-Family $1,854 1.00 $1,854 per dwelling unit Multi-Family $1,854 0.36 $672 per dwelling unit F_A Single-Family $135 1.00 $135 per dwelling unit Multi-Family $135 0.36 $49 per dwelling unit Comm. / Retail $135 0.84 $113 per 1,000 sq. ft. Office $135 0.56 $75 per 1,000 sq. ft. F_C Single-Family $1,974 1.00 $1,974 per dwelling unit Multi-Family $1,974 0.36 $715 per dwelling unit F_E Single-Family $461 1.00 $461 per dwelling unit Multi-Family $461 0.36 $167 per dwelling unit Comm. / Retail $461 0.84 $386 per 1,000 sq. ft. Office $461 0.56 $256 per 1,000 sq. ft. As the EDU demand factor is based upon 1,000 sq. ft. for commercial / non-residential, the fees were calculated on a per 1,000 sq. ft. basis. However, for simplicity purposes, Item Title: 4.1
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the fees were converted to per sq. ft. by taking the dollar amount and dividing it by 1,000 (e.g., $8,134 divided by 1,000 = $8.1324). The admin fee of 2.80% was then multiplied by the Storm Drain Impact Fee to determine the administrative fee component. The administrative fee component was then added to the baseline Storm Drain Impact Fee. The following table shows by sub-basin and watershed, land use category, the Storm Drain Impact Fee, the admin fee, and the resulting full cost Storm Drain Fee: Table 93: Storm Drain Impact Fee Calculation Including Administrative Fee Category Impact Fee Admin Fee Full Cost Impact Fee A_A Single-Family $9,723 $272 $9,995 per dwelling unit Multi-Family $3,522 $99 $3,621 per dwelling unit Retail $8.13 $0.23 $8.36 per sq. ft. A_B Single-Family $253 $7 $260 per dwelling unit Multi-Family $92 $3 $95 per dwelling unit Retail $0.21 $0.01 $0.22 per sq. ft. Office $0.14 $0.00 $0.14 per sq. ft. A_C Single-Family $4,566 $128 $4,694 per dwelling unit Multi-Family $1,654 $46 $1,700 per dwelling unit Retail $3.82 $0.11 $3.93 per sq. ft. Office $2.54 $0.07 $2.61 per sq. ft. B_A Single-Family $640 $18 $658 per dwelling unit Multi-Family $232 $6 $238 per dwelling unit Retail $0.54 $0.02 $0.56 per sq. ft. Office $0.36 $0.01 $0.37 per sq. ft. Industrial $0.30 $0.01 $0.31 per sq. ft. B_B Single-Family $1,854 $52 $1,906 per dwelling unit Multi-Family $672 $19 $691 per dwelling unit F_A Single-Family $135 $4 $139 per dwelling unit Multi-Family $49 $1 $50 per dwelling unit Retail $0.11 $0.00 $0.11 per sq. ft. Office $0.08 $0.00 $0.08 per sq. ft. F_C Single-Family $1,974 $55 $2,029 per dwelling unit Multi-Family $715 $20 $735 per dwelling unit F_E Single-Family $461 $13 $474 per dwelling unit Multi-Family $167 $5 $172 per dwelling unit Retail $0.39 $0.01 $0.40 per sq. ft. Office $0.26 $0.01 $0.27 per sq. ft. 24 It equals $8.134 but it was rounded to two decimals to $8.13.

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The addition of the administrative fee captures the full cost associated with the proportionate impact of future development. Due to the nature of the modification of the proposed Storm Drain Impact Fee to be sub-basin and watershed based, there is no ability to compare it against to the City’s current Storm Drain Impact Fee. In some instances, the fee will decrease, for example, the City’s current fee in the MDP South Benefit Area is $2,316 per Single-Family home. This current fee is lower than the fees in Sub-basin and Watershed A_A, A_C, and B_A, but higher than the fees in the other sub-basins and watershed such as Sub-Basin A_B. The proposed modification to the Storm Drain fee is tied to the City’s Master Drainage Plan and ensures that new development only within that area is contributing towards the storm drain impact to that region of the City. 4 Nexus Criteria As discussed in the legal framework section, in order for an impact fee to be implemented it must meet all five of the nexus criteria as established per the Mitigation Fee Act. The following table outlines each criterion point, and how the proposed Storm Drain Impact fee meets the Mitigation Fee Act criteria. Table 94: Storm Drain Impact Fees Nexus Criteria Criteria Meet Don’t Meet Purpose of Fee The fee would be used to fund improvements identified in the Storm Drain Master Drainage Plan for each sub-basin and watershed.

Use of Fee Revenue The City has a Master Drainage Plan that outlines the utilization of this fee revenue for future years to help ensure that there is appropriate expansion and development of storm drain-related facilities to meet current and future resident and employee needs.

Benefit Relationship
The use of the impact fee revenue would be to enhance existing facilities, which would be directly proportional to the increased wear and tear and use of City infrastructure as there is new residential and commercial growth in the City. The increase in residential population is related to the number of dwelling units and the impact fee would be applicable to dwelling units. The increase in employment is related to non-residential space and is applicable to square footage.

Impact Relationship Based upon the current storm drain needs in the City, the addition of new residents and employees would require the need for upgraded use of storm drain facilities.

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Criteria Meet Don’t Meet
Proportionality
The proposed impact fee would be a flat fee per dwelling unit depending upon the density of the housing units to capture the residential impacts, as the primary mechanism for addition of residential population to the City is through increased dwelling units. For employees the fee is based upon non-residential square footage as that is the primary mechanism associated with increases in employment within the City.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose a Storm Drain Impact Fee. 5 Comparative Survey As part of this impact fee analysis, the project team conducted a comparative survey of surrounding jurisdictions who charge a Storm Drain Impact Fee. Due to the nature of how storm drainage fees are assessed in these jurisdictions, it is difficult to provide an appropriate comparison, as many jurisdictions are also regional specific or calculated based upon the specific development type. Therefore, no comparable comparative information could be provided.

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Appendix: Storm Drain Projects & Map As discussed in the Storm Drain Impact Fee Chapter, this appendix lists out the detailed projects and cost assumptions utilized for the City of Menifee to calculate its Storm Drain Impact Fee. Table 95: Storm Drain Project Listing Basin ID Sub-Basin Project Name Project Type Cost25 A A_A Murrieta and Craig & Craig and Hawthorn CIP $10,600,000 A A_B Murrietta and Garbani CIP $466,000 A A_C Lazy Creek and Murrieta CIP $1,516,000 A A_C Dorval and Gifhorn CIP $2,200,000 A A_C Lazy Creek and Sun Country CIP $4,400,000 B B_A Paloma Valley Channel Upstream Improvements 1 Land Development $4,200,000 B B_A Paloma Valley Channel Upstream Improvements 2 Land Development $4,600,000 B B_A Paloma Valley Channel Upstream Improvements 3 Land Development $1,200,000 B B_A Paloma Valley Channel Upstream Improvements 4 Land Development $1,900,000 B B_A Paloma Valley Channel Upstream Improvements 5 Land Development $1,400,000 B B_B La Piedra and Spring Deep CIP $2,100,000 B B_B Holland and Bell Mountain CIP $990,000 F F_A Chambers and Murrieta Land Development $650,000 F F_C Potomac and Piping Rock CIP $2,900,000 F F_E McCall and Encanto CIP $2,000,000 The following pages shows from the Master Drainage Plan, the watershed and sub-basins for the City of Menifee. 25 This cost does not match the estimated cost in the master drainage plan as the City worked with the Master Drainage Consultant to modify estimates to reflect current cost assumptions and contingencies.

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Figure 3-2: Major Subwatershed Drainage Areas

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Appendix: Transportation Project Listings As discussed in the Transportation Impact Fee Chapter, this appendix lists out the detailed projects and cost assumptions utilized for the City of Menifee to calculate its Transportation Impact Fee. Table 96: Traffic Signal Project Listing Street Name Classification Street Name Classification Estimated Cost Antelope Road Secondary Mclaughlin Road Collector $450,000 Antelope Road Major Watson Road Secondary $450,000 Antelope Road Major Wickerd Road Collector $450,000 Antelope Road Major Albion Lane Collector $450,000 Antelope Road Major Chambers Ave Secondary $450,000 Bradley Road Major Garbani Road Major $450,000 Bradley Road Major Rim Creek Path Collector $450,000 Bradley Road Secondary Lazy Creek Road Collector $450,000 Bradley Road Secondary Rio Vista Drive Collector $450,000 Bradley Road Secondary Pebble Beach Drive Collector $450,000 Bradley Road Secondary Cherry Hills Blvd Secondary $450,000 Briggs Road Major Watson Road Secondary $450,000 Briggs Road Major Simpson Road Secondary $450,000 Briggs Road Major Tres Lagos Drive Secondary $450,000 Briggs Road Major Old Newport Road Collector $450,000 Briggs Road Major Grand Ave Collector $450,000 Briggs Road Major Mclaughlin Road Collector $450,000 Bundy Canyon Road Urban Arterial Murrieta Road Arterial $450,000 Bundy Canyon Road Urban Arterial Sunset Ave $450,000 Chambers Ave Secondary Gross Pointe Drive Collector $450,000 Cherry Hills Blvd Secondary Pebble Beach Drive Collector $450,000 Encanto Drive Major Chambers Ave Secondary $450,000 Encanto Drive Major Rouse Road Secondary $450,000 Ethanac Road Expressway Sherman Road Major $450,000 Ethanac Road Expressway Malaga Road Collector $450,000 Ethanac Road Expressway Murrieta Road Arterial $450,000 Ethanac Road Expressway Byers Road Collector $450,000 Ethanac Road Expressway Evans Road Collector $450,000 Evans Road Secondary Craig Ave Collector $450,000 Evans Road Secondary Rim Creek Path Collector $450,000 Garbani Road Major Haun Road Major $450,000 Garbani Road Major Palomar Road Collector $450,000 Garbani Road Major Briggs Road Major $450,000 Garbani Road Major Sherman Road Collector $450,000 Garbani Road Collector Evans Road Secondary $450,000 Goetz Road Arterial Mclaughlin Road Secondary $450,000 Goetz Road Major Ave Roble Collector $450,000 Goetz Road Major Vista Way Collector $450,000 Goetz Road Major Unnamed Road Collector $450,000 Goetz Road Major Juanita Drive Collector $450,000 Goetz Road Major Paseo La Plaza Collector $450,000 Item Title: 4.1
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Street Name Classification Street Name Classification Estimated Cost Goetz Road Major Kabian Park Collector $450,000 Haun Road Major Wickerd Road Collector $450,000 Haun Road Major Craig Ave Collector $450,000 Holland Road Major Evans Road Secondary $450,000 Holland Road Major Pleasant Valley Blvd Collector $450,000 Holland Road Major Sherman Road Collector $450,000 Holland Road Major Palomar Road Collector $450,000 Holland Road Major Briggs Road Major $450,000 Honeyrun Road Secondary La Ladera Road Collector $450,000 Keller Road Major Zeiders Road Major $450,000 Mapes Road Major Trumble Road Major $112,500 Mapes Road Major Antelope Road Major $450,000 Mapes Road Major Briggs Road Major $450,000 Mapes Road Major Sherman Road Collector $450,000 Mapes Road Major Palomar Road Collector $450,000 Mapes Road Major Malaga Road Collector $450,000 Matthews Road Major Antelope Road Major $450,000 McCall Blvd Urban Arterial Antelope Road Major $450,000 McCall Blvd Major Gross Pointe Drive Collector $450,000 McCall Blvd Major Pebble Beach Drive Collector $450,000 Mclaughlin Road Secondary Byers Road Collector $450,000 Mclaughlin Road Secondary Murrieta Road Secondary $450,000 Mclaughlin Road Secondary Evans Road Collector $450,000 Mclaughlin Road Secondary Barnett Road Secondary $450,000 Menifee Road Urban Arterial Mclaughlin Road Collector $450,000 Menifee Road Urban Arterial Watson Road Secondary $450,000 Menifee Road Urban Arterial Mapes Road Major $450,000 Menifee Road Arterial Wickerd Road Collector $450,000 Menifee Road Arterial Craig Ave Collector $450,000 Murrieta Road Arterial Lazy Creek Road Collector $450,000 Murrieta Road Secondary Chambers Ave Secondary $450,000 Murrieta Road Arterial La Piedra Road Secondary $450,000 Murrieta Road Arterial Holland Road Major $450,000 Murrieta Road Secondary Thornton Ave Collector $450,000 Newport Road Urban Arterial Briggs Road Major $450,000 Rouse Road Major Presley Street Collector $450,000 Rouse Road Major Barnett Road Secondary $450,000 Rouse Road Major Palomar Road Collector $450,000 Rouse Road Major Byers Road Collector $450,000 Rouse Road Secondary Trumble Road Collector $450,000 Scott Road Urban Arterial Howard Way Collector $450,000 Scott Road Urban Arterial Haleblain Road Collector $450,000 Scott Road Urban Arterial Palomar Road Collector $450,000 Scott Road Urban Arterial Meritt Road Collector $450,000 Sherman Road Major Chambers Ave Secondary $450,000 Sherman Road Major Mclaughlin Road Collector $450,000 Sherman Road Major Rouse Road Secondary $450,000 SR 74 Major Watson Road Collector $450,000 Sun City Blvd Secondary Chambers Ave Secondary $450,000 Sun City Blvd Secondary Presley Street Collector $450,000 Tres Lagos Drive Secondary Laguna Vista Drive Collector $450,000 Item Title: 4.1
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Street Name Classification Street Name Classification Estimated Cost Valley Blvd Arterial Honeyrun Road Secondary $450,000 Valley Blvd Arterial Ridgemoor Road Collector $450,000 Valley Blvd Arterial Sun City Blvd Collector $450,000 Valley Blvd Arterial Mccall Blvd Major $450,000 Valley Blvd Arterial Chambers Ave Secondary $450,000 Valley Blvd Arterial Rouse Road Major $450,000 Valley Blvd Arterial Goetz Road Major $450,000 Valley Blvd Arterial Murrieta Road Arterial $450,000 Valley Blvd Arterial Cherry Hills Blvd Collector $450,000 Valley Blvd Arterial Thorton Ave Collector $450,000 Watson Road Secondary Palomar Road Collector $450,000 Watson Road Secondary Malaga Road Collector $450,000 Watson Road Secondary Sherman Road Collector $450,000 TOTAL $46,912,500 In addition to the Traffic Signal Listing, this appendix also includes the detailed traffic project list. The following table shows the segment, the from: to, the segment length, the curb to curb length, and the total project cost included26: Table 97: Transportation Project Listing Segment From: To Segment Length (FT) Curb (FT) Project Cost Antelope Road Craig Ave to Scott Rd 6,600 76 $9,924,149 Antelope Road Mapes Rd to Watson Rd 2,680 50 $3,073,747 Antelope Road Ethanac Rd to McLaughlin Rd 2,592 32 $1,713,581 Antelope Road McLaughlin Rd to Rouse Rd 2,900 72 $4,131,105 Antelope Road Rouse Rd to McCall Blvd 4,200 76 $6,315,368 Antelope Road Aldergate Dr to Palm Villa Dr 2,200 14 $715,669 Antelope Road La Piedra Rd to Albion Ln 1,712 5 $360,964 Antelope Road Holland Rd to Craig Ave 2,627 12 $1,118,033 Bamett Road Ethanac Rd to Patricia Ln 625 44 $544,087 Bamett Road Patricia Ln to McLaughlin Rd 1,939 72 $2,762,142 Bamett Road McLaughlin Rd to Plum Dr 1,370 43 $1,304,882 Bamett Road Plum Dr to Phyllis Rd 740 41 $666,136 Bamett Road Phyllis Rd to Rouse Rd 567 12 $173,586 Bradley Road Rio Vista Dr to Park Ave 1,258 8 $279,089 Bradley Road Park Ave to Newport Rd 1,006 28 $621,256 Bradley Road Holland Rd to Coroson Ave 1,324 49 $641,785 Bradley Road Coroson Ave to Craig Ave 1,270 40 $1,111,686 Bradley Road Craig Ave to Tupelo Rd 1,343 56 $1,549,463 Bradley Road Tupelo Rd to Garbani Rd 698 76 $1,049,554 Briggs Road Mapes Rd to Alicante Dr 1,300 23 $651,074 Briggs Road Alicante Dr to Watson Rd 1,325 41 $1,088,296 Briggs Road Watson Rd to School South 1,415 21 $587,911 Briggs Road School South to Hwy 74 1,215 42 $1,009,628 Briggs Road Hwy 74 to McLaughlin Rd 1,215 22 $528,853 Briggs Road McLaughlin to Meadow Oaks St 1,825 76 $2,744,178 26 The total project cost is inclusive of right-of-way costs, construction costs, design, project management, and construction management.

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DRAFT Development Impact Fee Study MENIFEE, CA

Matrix Consulting Group 70

Segment From: To Segment Length (FT) Curb (FT) Project Cost Briggs Road Meadow Oaks St to Matthews Rd 3,345 43 $2,845,773 Briggs Road Simpson Rd to N. Olive Ave 2,142 76 $3,220,837 Briggs Road N. Olive Ave to S. Olive Ave 572 76 $860,093 Briggs Road S. Olive Ave to Domenigoni Pkwy 2,357 76 $3,544,124 Briggs Road Domenigoni Pkwy to Angler Ln 2,080 76 $3,127,611 Briggs Road Angler Ln to Old Newport Rd 1,314 52 $1,351,869 Briggs Road Scott Rd to Golden J. Ln 2,643 52 $2,783,027 Byers Road Ethanac Rd to Resue Rd 5,368 44 $4,673,055 Chambers Avenue Valley Bl to Connie Way 750 8 $156,853 Chambers Avenue Connie Way to Munieta Or 1,404 44 $1,257,964 Chambers Avenue I215 to School 1,525 72 $2,172,391 Chambers Avenue School to Sherman Rd 1,035 34 $696,234 Chambers Avenue Sherman Rd to Chatham Ln 1,968 40 $1,582,521 Chambers Avenue Chatham Ln to Antelope Rd 646 72 $920,239 Craig Ave Evans Rd to Bradley Rd 2,639 12 $626,551 Craig Ave Bradley Rd to Linda Lee Dr 2,639 44 $2,297,353 Craig Ave Linda Lee Dr lo Pleasant Valley Rd 745 44 $648,552 Craig Ave Pleasant Valley Rd to Haun Rd 2,316 44 $2,016,169 Encanto Drive Mccall to Mclaughlin $3,688,410 Evans Road Ethanac Rd to Mclaughlin Rd 2,648 44 $2,305,188 Evans Road McLaughlin Rd to Nova Ln 651 12 $154,560 Evans Road Now ln to Rouse Rd 1,930 44 $1,680,141 Evans Road La Piedra Rd to Holland Rd 2,373 72 $3,380,384 Evans Road Holland Rd to Craig Ave 2,610 39 $2,027,200 Evans Road Garbani Rd to Wickerd Rd 2,680 44 $2,333,046 Garbani Rd School East Ori\eWay to Evans Rd 1,136 20 $449,515 Garbani Rd Daniel Rd to Country Haven Ln 1,799 8 $284,746 Garbani Rd Country Haven ln to Bradley Rd 670 44 $583,261 Garbani Rd Menifee Rd to Briggs Rd 5,267 52 $5,633,090 Garbani Road 1-215 to Menifee 6,013 38 $3,570,219 Garbani Road 1-215 to Bradley 7,473 38 $4,437,094 Goetz Rd Ethanac Rd to Goldenrod A 2,667 30 $1,677,972 Haun Road Holland Rd to Scott Rd $8,031,604 Haun Road La Piedra Rd to Holland Rd 2,617 26 $1,346,210 Haun Road Scott Rd to Shopping Center 1,161 7 $267,084 Haun Road Shopping Center to Annie Cir 2,711 76 $4,166,055 Haun Road Annie Cir to Keller Rd 1,394 44 $1,316,359 Heritage Lake Drive Palomar St to Menifee Rd 2,664 76 $4,005,747 Holland Road Anna ln to Murrieta Rd 2,942 52 $3,565,426 Holland Road Hanover Ln to Palomar Rd 1,336 36 $951,579 Holland Road Southshore Dr to Briggs Rd 2,664 40 $2,108,288 Howartl Way Wickerd Rd lo Scott Rd 2,652 44 $2,740,320 Howard Way Scott Rd to Ciccotti St 2,641 44 $2,406,657 Keller Road Zeiders Rd 1o 1215 1,288 44 $1,121,255 La Piedra Rd Stem Or to Sherman Rd 1,340 72 $1,908,855 Leon Road Scott Rd to Keller Rd 5,287 46 $5,188,218 Lindenberger Road Camino De Los Gaballos to Obsidian 2,633 28 $1,458,628 Lindenberger Road Obsidian Ct to Scott Rd 2,072 11 $482,598 Lindenberger Road Chaparral Or to Cresta Dr 2,343 31 $1,645,620 Lindenberger Road Cresta Dr to Silver Summit Rd 353 8 $55,873 Lindenberger Road Silwr Summit Rd to Trailhead Or 1,674 38 $1,258,563 Item Title: 4.1
Draft Development Impact Fees Study
Item Page Number: 110
Menifee Mayor and City Council
August 31, 2022
Page
111 of 113

DRAFT Development Impact Fee Study MENIFEE, CA

Matrix Consulting Group 71

Segment From: To Segment Length (FT) Curb (FT) Project Cost Lindenberger Road Trailhead Or to Simpson Rd 600 2 $23,742 Malaga Road Mapes Rd to Citation Ave 2 44 $1,758 Malaga Road Citation Ave to Varela Ln 1,970 44 $1,714,963 Malaga Road Varela Ln to Sr 74 1,339 44 $1,165,652 Mapes Road Trumble Rd to Shem,an Rd 1,310 26 $860,459 Mapes Road Shem,an Rd to Dawson Rd 1,305 28 $862,355 Mapes Road Davidson Rd to Menifee Rd 6,680 26 $4,183,665 Mapes Road Menifee Rd to Briggs Rd 5,358 26 $2,956,075 McCall Blvd Valley Blvd to Radford Or 825 44 $823,088 McLaughlin Rd Goetz Rd to Byers Rd 2,520 72 $3,589,788 McLaughlin Rd Byers Rd to Murrieta Rd 2,600 72 $3,716,972 McLaughlin Rd Murrieta Rd to Hull Rd 1,308 40 $1,041,825 McLaughlin Rd Hull Rd to Evans Rd 1,326 39 $1,023,161 McLaughlin Rd Evans Rd to Barnett Rd 1,330 72 $1,894,610 McLaughlin Rd Encanto Dr to Alta Ave 736 11 $160,179 McLaughlin Rd Alta Ave to Trumble Rd 510 11 $110,994 McLaughlin Rd Trumble Rd to Sherman Rd 1,330 44 $1,157,817 McLaughlin Rd Sherman Rd to Antelope Rd 2,596 44 $2,259,920 McLaughlin Rd Antelope Rd to Matthews Rd 2,728 44 $2,374,831 McLaughlin Rd Matthews Rd to Menifee Rd 1,255 44 $1,139,671 McLaughlin Rd Menifee Rd to Briggs Rd 5,334 44 $4,643,457 Menifee Rd Mapes Rd to Watson Rd 2,620 86 $4,524,576 Menifee Rd Watson Rd to SR 74 2,640 86 $4,559,115 Normandy Road La Ladera Rd to Berea Rd 2,595 14 $718,789 Palomar Rd Mapes Rd to Watson Rd 2,640 18 $940,183 Palomar Rd Cider St to SR 74 1,503 14 $416,316 Palomar Rd Matthews Rd to Rouse Rd 3,556 44 $3,095,638 Palomar Rd Rouse Rd to Heritage Lake Dr 1,352 44 $1,176,969 Palomar Rd Holland Rd to Overland Ct 699 12 $180,196 Palomar Rd Craig Ave to Tupelo Rd 1,325 7 $244,153 Palomar Rd Garbani Rd to Scott Rd 5,280 44 $4,596,448 Rouse Road Valley Blvd to Byers Rd 700 76 $1,052,561 Rouse Road Byers Rd to Geary St 1,335 37 $1,051,976 Rouse Road Hull Rd to Barnett Rd 1,425 47 $1,426,559 Rouse Road Encanto Dr to Myles Ct 719 43 $695,797 Rouse Road Myles Ct to Dawson Rd 3,128 40 $2,475,497 Rouse Road Dawson Rd to Antelope Rd 1,539 72 $2,192,335 Rouse Road Palomar Rd to Menifee Rd 2,600 38 $1,954,757 Sherman Road Sr 74 to Jackson Ave 280 2 $48,205 Sherman Road Jackson Ave to Harrison Ave, 744 22 $339,733 Sherman Road Harrison Ave to Ethanac Rd 1,100 57 $1,402,753 Shennan Road Ethanac Rd to Mclaughlin Rd 2,626 76 $4,376,062 Shennan Road Mclaughlin Rd to Airstream Way 1,010 76 $1,570,061 Shennan Road Airstream Way to Vanilla Ct 1,214 43 $1,292,187 Shennan Road Rouse Rd to Chambers Ave 2,692 76 $4,047,850 Shennan Road Shadel Rd to McCall Blvd 672 24 $407,965 Shennan Road McCall Blvd to Alta Vista Way 774 12 $203,470 Sherman Road El Molina Viejo to Holland Rd 1,315 10 $260,173 Shennan Road Craig Ave to Tupelo St 1,312 44 $1,142,148 Shennan Road Garbani Rd to Diego Way 1,330 44 $1,157,817 Shemian Road Diego Way to Wickerd Rd 1,289 44 $1,122,125 Item Title: 4.1
Draft Development Impact Fees Study
Item Page Number: 111
Menifee Mayor and City Council
August 31, 2022
Page
112 of 113

DRAFT Development Impact Fee Study MENIFEE, CA

Matrix Consulting Group 72

Segment From: To Segment Length (FT) Curb (FT) Project Cost Simpson Road Lindenberger Rd to Briggs Rd 1,980 14 $548,440 Tres Lagos Drive South Shore Dr to Briggs Rd 2,596 72 $4,358,176 Trumble Road Watson Rd to lllionis Ave 1,335 4 $105,652 Trumble Road lllionis Ave to Ethanac Rd 1,341 4 $106,127 Trumble Road Ethanac Rd to Mclaughlin Rd 2,658 44 $2,313,894 Trumble Road Mclaughlin Rd to Almaden Ln 2,195 12 $744,399 Valley Blvd Goldenrod Ave to Troy Ln 2,357 86 Valley Blvd Troy Ln to Thornton Ave 2,500 86 $4,253,772 Valley Blvd Thornton Ave to Chambers Ave 1,320 54 $1,497,557 Valley Blvd Missing Link 1 $2,479,134 Valley Blvd Missing Link 2 $6,478,530 Watson Road SR 74 to Shennan Rd 600 72 $854,711 Watson Road Sherman Rd to Antelope Rd 2,623 48 $2,837,854 Watson Road Antelope Rd to Palomar Rd 2,693 27 $1,739,914 Watson Road Palomar Rd to Menifee Rd 2,690 43 $2,534,805 Watson Road Menifee Rd to Cumming Ave 1,333 48 $1,515,427 Walson Road Cumming Ave to Briggs Rd 4,014 50 $4,346,477 Wickerd Road Ascot Way to Howard Rd 1,300 44 $1,131,701 Wickerd Road Howard Rd to Haun Rd 1,318 14 $365,073 Wickerd Road Antelope Rd to Haleblain Rd 3,685 44 $3,207,938 Wickerd Road Haleblain Rd to Menifee Rd 1,308 44 $1,138,666 TOTAL $282,612,846 The final set of information for Transportation is some of the specific traffic projects. The following table lists by project name, the project type, and total estimated project cost: Table 98: Traffic Project Listing Project Name Project Type Estimated Cost Holland and Murrieta Intersection Realignment $5,000,000 Railway Grade Separation - Briggs Rd at Matthews Rd At Grade Separation $3,000,000 Railway Grade Separation - Menifee Rd/S of Matthews R - At Grade Separation $3,000,000 Railway Grade Separation - Sherman Rd/SW of Hwy 74 At Grade Separation $10,000,000 At Grade Separation Subtotal $16,000,000 Murrieta Bridge over Salt Creek Bridge $15,000,000 Garbani Interchange Interchange $65,000,000 Keller Interchange (West side) Interchange $16,250,000 Scott Road/I-215 (West side) Interchange Interchange $35,000,000 McCall Boulevard/I-215 Interchange Interchange $35,000,000 Interchange Subtotal $151,250,000 Item Title: 4.1
Draft Development Impact Fees Study
Item Page Number: 112
Menifee Mayor and City Council
August 31, 2022
Page
113 of 113