Agenda packet — Menifee City Council, November 16, 2022 (part 3 of 5)

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Table 1- Bid Result Summary
Firm Name Total Bid Amount Lowest Responsible Bidder
Engineers Estimate $58,000.00
Roy Allan Slurry Seal, Inc. (1) $63,756.00
Carter Enterprises Group Inc
dba Pavement Rehab Company $77,390.00 X
American Asphalt South, Inc. $88,681.65
All American Asphalt $149,000.00
(1) Per the instructions provided to all bidders, a hard copy of the entire bid package must be submitted within 24 hours after the bid deadline for bids to be considered responsie. Roy Allan Slurry Seal, Inc., failed to submit the required hard copies, and was therefore found to be non- responsive, resulting in rejection of their bid. Upon review of the next lowest bidder, staff determined that Carter Enterprises Group, Inc., dba Pavement Rehab Company, met all the requirements for recommendation as the lowest responsive and responsible bidder.

The anticipated construction cost for this part of the project is $92,869, which includes construction, labor compliance, inspection, and other costs typically associated with a construction project. Construction management would be performed by City staff, while labor compliance services would be performed by a consultant.

If approved by the City Council, the tentative project schedule would be as follows:

Construction Start: December 7, 2022
Construction End: December 21, 2022
City Council Acceptance: January 20, 2023
*The timeline above assumes no delays due to weather or unforeseen conditions.

Environmental Impact
The proposed use has been determined to be Categorically Exempt (“Existing Facilities”) under the California Environmental Quality Act (CEQA) and CEQA Guidelines, Section 15301. Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. Class 1 includes the following example of a project that would be exempt under this section: (c) [minor alterations to] Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety). The project is for the resurfacing of an existing paved road as described above. All improvements are within existing city right-of-way. The proposed improvements are a negligible expansion of the existing use. The improvements described above are considered minor alterations to existing streets or similar facilities. The Project is exempt per Section 15301.

The proposed Project is also exempt under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA (Section 15061(b)(3)). There is no Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 2
Menifee

Mayor

and

City

Council

November

16,
2022
Page
279 of 1157

City of Menifee Staff Report
PMP 23-01 Award
November 16, 2022

Page 3 of 3 ends

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possibility that the activity in question will have a significant effect on the environment because the proposed project is occurring in an area that is already heavily disturbed and is not environmentally sensitive. The Notice of Exemption for the Project was recorded with the County of Riverside on September 21, 2022.

STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community

FISCAL IMPACT
The total anticipated construction cost for this part of the Project is estimated at $92,869. The available funding for this Project is summarized in Table 2 below.

Table 2- Project Funding
Fund Project Account
Number
Available
Budget
Anticipated
Cost
General
Fund
Pavement
Management
Program
100-4555-58011 $ 52,920 $ 35,910
Measure A Pavement
Management
Program
220-4555-58011 $ 56,959 $ 56,959
Total $ 109,879 $ 92,869

ATTACHMENTS

1. Agreement

2. Project Location Map
Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 3
Menifee

Mayor

and

City

Council

November

16,
2022
Page
280 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 1

CITY OF MENIFEE BID AND CONTRACT DOCUMENTS

OWNER-CONTRACTOR AGREEMENT
PMP 23-01 FY 2022/23 SLURRY SEAL PROGRAM- CRACK SEAL
This Owner-Contractor Agreement (“Agreement”) is made and entered into for the above referenced Project by and between the City of Menifee (“Agency”), and CARTER ENTERPRISES GROUP DBA PAVEMENT REHAB COMPANY (“Contractor”), whose principal business address is 810 MANDEVILLA WAY, CORONA, CA 92879 on the ________ day of ______________, 20_______.

In consideration of the mutual covenants and agreements set forth herein, the Agency and Contractor have mutually agreed as follows:

The term Contract Documents shall mean this Agreement, and all of the items enumerated in Exhibit “A” and all change orders or addenda issued by the Agency with respect thereto. Agency must consent in writing to any changes in the scope of Work. Exhibit “A” shall be deemed revised in accordance with any revisions for which Agency’s consent has been issued. Any revisions to the scope of Work for which Agency’s consent has not been issued shall be null and void.

2. CONTRACT PRICE
Agency hereby agrees to pay and the Contractor agrees to accept as full compensation for all Work performed in accordance with these Contract Documents the Contract Price as set forth in Exhibit “B”, Contract Price, attached hereto and incorporated herein by reference. Payments to the Contractor shall be made in the manner described in the Special Provisions.

3. TIME FOR PERFORMANCE
Time is of the essence in the performance of Work for this Agreement and all timing requirements shall be strictly adhered to unless otherwise modified by the Agency in accordance with these Bid and Contract Documents.

The Contractor shall complete the Work in every detail to the satisfaction of the Agency, exclusive of maintenance periods, within the specified duration set forth in the Notice to Proceed.

Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 4
Menifee

Mayor

and

City

Council

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2022
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4. DELAYS AND EXTENSIONS OF TIME
See Section 6-6 of the Special Provisions.

5. COVID-19 SAFETY
If Contractor or subcontractor(s) enters City property or meets in person with City employees during the performance of the Services, Consultant shall comply with all State, County, and local emergency orders, directives, protocols, and best practices related to the COVID-19 pandemic, including, but not limited to: (A) wearing facial coverings, (B) maintaining adequate physical distancing when possible, (C) regular hand washing, and (D) regular hand sanitizing.

6. LABOR CODE REQUIREMENTS
Pursuant to Labor Code Section 1771.1, the Contractor and all subcontractors shall be registered with the Department of Industrial Relations. Pursuant to Labor Code Section 1771.4, the Contractor is hereby notified that this Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. [EFFECTIVE APRIL 1, 2015.]

7. NON-DISCRIMINATION
In the performance of this Agreement, the Contractor shall not refuse or fail to hire or employ any qualified person, or bar or discharge from employment any person, or discriminate against any person, with respect to such person’s compensation, terms, conditions or privileges of employment because of such person’s race, religious status, sex or age.

8. AUTHORIZED AGENCY REPRESENTATIVES
On behalf of the Agency, the City Engineer of the City of Menifee shall be the Agency’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement. The City Engineer may delegate authority in connection with this Agreement to his/her assigned designees.

9. WORKERS’ COMPENSATION INSURANCE
a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.
b) The Contractor shall require each subcontractor to comply with the requirements of Section 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:
“I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for worker’s compensation or to undertake self-insurance in accordance with the Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 5
Menifee

Mayor

and

City

Council

November

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2022
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290/031858-0008
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provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.”

10. ENTIRE AGREEMENT; CONFLICT
The Contract Documents comprise the entire agreement between the Agency and the Contractor with respect to the Work. In the event of conflict between the terms of this Agreement and the bid of the Contractor, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid conflicting herewith.

11. MAINTENANCE OF AGREEMENT DOCUMENTATION
Contractor shall maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by Agency and copies thereof shall be furnished to Agency if requested.

12. INDEPENDENT CONTRACTOR
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Agency. Agency shall have the right to control Contractor insofar as the results of Contractor’s services rendered pursuant to this Agreement; however, Agency shall not have the right to control the means by which Contractor accomplishes such services.

13. LICENSES AND PERMITS
Contractor represents and declares to Agency that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession. Contractor represents and warrants to Agency that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.

14. GOVERNING LAW, VENUE
This Agreement and the Contract Documents shall be construed under and in accordance with the laws of the State of California, and the appropriate venue for any action or proceeding arising from this Agreement and/or the Contract Documents shall be had in the Superior Court of Riverside, Temecula Branch

15. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.

16. FALSE CLAIMS
Contractor acknowledges that if a false claim is submitted to the Agency, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 6
Menifee

Mayor

and

City

Council

November

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2022
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where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Agency seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years.

I have read and understood all of the provisions of this Section 15, above:
(Initial) (Initial)

17. AGREEMENT MODIFICATION
This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Agency and the Contractor.

IN WITNESS WHEREOF this Agreement is executed as of the date first written above.

AGENCY:

City of Menifee
By:

Armando G. Villa, City Manager
CONTRACTOR:

CARTER ENTERPRISES GROUP DBA

PAVEMENT REHAB COMPANY
By:

Name: Robert Steen, President______
Its:

APPROVED AS TO FORM:

By:

Jeffrey T. Melching, City Attorney
By:

Name: Robert Steen, Treasurer
Its:

ATTEST:

By:

Kay Vinson, Acting City Clerk
Contractor’s City Business License No.

CSLB:1051374, CLASS C-12
State Contractor License No. & Class
810 MANDEVILLA WAY
Street Address
Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 7
Menifee

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November

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2022
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290/031858-0008
7645681.2 a03/02/22 Page 5
CORONA, CA 92879
City, State, Zip Code
[NOTE: In the event the Contractor is a Corporation, the signatures of two separate persons holding different offices must be provided.]
Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 8
Menifee

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November

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2022
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EXHIBIT A

CONTRACT DOCUMENTS
Owner-Contractor Agreement
Bid Schedule
Addenda
Plans
Special Provisions (Specifications)
Standard Specifications for Public Works Construction and Regional Supplements State Standard Specifications
State Standard Plans
Permits issued by jurisdictional regulatory agencies
Electric, gas, telephone, and cable television company specifications and standards Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 9
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2022
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EXHIBIT B

CONTRACT PRICE
Seventy Seven Thousand Three Hundred Ninety Dollars and Zero Cents ($77,390.00) The Contract Price for performing all Work described in the Contract Documents, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, as determined by the Agency.

Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 10
Menifee

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and

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Council

November

16,
2022
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Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 11
Menifee

Mayor

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Council

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2022
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Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 12
Menifee

Mayor

and

City

Council

November

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2022
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290/031858-0008
7645681.2 a03/02/22 Page 10
Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 13
Menifee

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and

City

Council

November

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2022
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Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 14
Menifee

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and

City

Council

November

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2022
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Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 15
Menifee

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City

Council

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2022
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Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 16
Menifee

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City

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November

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2022
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APPENDIX 4

PROJECT LOCATION MAP

Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 17
Menifee

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B e l A i r
A v e
Via Real
Cedar
Ave
Cherry
Ave
Walnut
Ave
Corte Retiro
Skeen Ct
McCall Blvd
Avenida Interno Avenida
Halago
E l P u e n t e S t
B
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D
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M e r b i e C i r
Corte Magdalena
Wellington Ct
Alta Vista Way
Chaucer Rd
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Oxford Way
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L n
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Whittington Rd
Rain Dance Dr
Summoner Rd
Cannon Dr
Brookshire Cir
Buckthorn Pl
Tate Rd
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Spring Meadow Ct
Regent Ln
P l e a s a n t G r o v e C t
Encanto Dr
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Moonridge Dr
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Sagebrush Rd
Shadel Rd
PERRIS
215
Haun Rd
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Newport Rd
Project Site
0 0.09 0.17
Miles
Path: Z:\Project_Specific_Maps\Engineering_PublicWorks\SlurrySealProgram\SlurrySealProgram\SlurrySealProgram.aprx Date: 7/18/2022 Slurry Seal Program (PMP 23-01 FY 22-23)
Project Location Map
Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 18
Menifee

Mayor

and

City

Council

November

16,
2022
Page
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Menifee Rd
Rose
Isle Ct
Somme Ct
Corte San Remo
Silver
Sands Cir
Lake
Watch Ct
Palomar Rd
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L a k e
D
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Teal Brook Dr
Menifee
Springs Ct
S t i l l w
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Bay
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Lake Chimes Dr
Fall River Ln
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Project Location Map
Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 19
Menifee

Mayor

and

City

Council

November

16,
2022
Page
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Heather
Ln
Pitm
an Ln
Afton Ln
Barton Banks St
Midnight Line Ct
Toleworth St
Tulita Ln
Broken
Arrow Cir
Eagle Rd Kona Gold St
Woodbine Ln
Curzulla Rd
Golden
J Ln
Mira St
Wickerd Rd
Hook Ln
Newmarket Dr
Hayf
orth
Cir
Loretta Ave
Eldertree St
Norbury Rd
Lanesbridge St
Earls
bur
n
Cir
Linde
nberge
rRd
Line
cr
of
tC
t
Whitehaven CtHeversham Ct
Kendal Ct
Brampton Ct
Gelder Cir
Waylon Ct
Eastbourne Ct
Silver Charm CtCharismatic Cir
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ts
Rd
Seattle Slew Cir Secretariat Ct
Landsdown Ln
Camino De Los Caballos
Briggs Rd
M
enifee Rd
Tiznow Cir
Lemon Drop St
For
gecrof
tSt
Lamtarra Loop
Alcazar Dr
Sharon Way
Garland Ln
Avalon Ln
Scott Rd
Aduddell Dr

MURRIETA
215
Antel
ope
Rd
LeonRd
Holland Rd
Via LosRosas
Briggs Rd
Garbani Rd
Scott Rd
Project Site
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Path: Z:\Project_Specific_Maps\Engineering_PublicWorks\SlurrySealProgram\SlurrySealProgram\SlurrySealProgram.aprx Date: 9/15/2022 Slurry Seal Program (PMP 23-01 FY 22-23)
Project Location Map
Item Title: 10.14
Bid

Award

and

Agreement

with

Carter

Enterprises

Group,

Inc.,

dba

Pavement

Rehab

Company,

for

Crack

Sealing
Services for Fiscal Year 2022/2023 Slurry Seal Program Project Item Page Number: 20
Menifee

Mayor

and

City

Council

November

16,
2022
Page
297 of 1157

CITY OF MENIFEE
SUBJECT: Bid Award and Agreement with California Professional Engineering, Inc. for Construction Services for Antelope Road/MSJC Entrance Traffic Signal and Reimbursement
Agreement with Mt. San Jacinto College
MEETING DATE: November 16, 2022
TO: Mayor and City Council
PREPARED BY: Diego Guillen, Associate Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Award bid and authorize the City Manager to execute an owner-contractor agreement with California Professional Engineering, Inc., to perform construction services for Antelope Road/ Mt. San Jacinto College (MSJC) Entrance Traffic Signal, Capital Improvement Project (CIP) No. CIP 22-15, in the amount of $604,514; and

2. Authorize the City Manager to execute a Reimbursement Agreement between the City of Menifee and MSJC for reimbursement of a portion of costs related to the installation of the new traffic signal; and

3. Adopt Budget Adjustment Resolution (BAR) carrying forward project budget (Fund 526) from Fiscal Year (FY) 2021/2022 into the FY 2022/2023 and adopt BAR appropriating $228,407 into Capital Project fund (Fund 320).

DISCUSSION
The Antelope Road/MSJC Entrance Traffic Signal Project (“Project”) proposes to construct a new traffic signal on Antelope Road at the main entrance to the MSJC campus. The proposed Project consists of the complete construction of a traffic signal and includes installation of a controller cabinet with foundation, service cabinet, wireless radios, ethernet switch, poles with foundation, conduit, pull boxes, detection loops, signing/striping, and pedestrian curb ramps. Roadway improvements would also be constructed near the intersection as part of the Project.

Staff recently administered a competitive bid process for this project and legally advertised the project in accordance with the California Public Contract Code. An electronic bid opening was Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 1
Menifee

Mayor

and

City

Council

November

16,
2022
Page
298 of 1157

City of Menifee Staff Report
CIP 22-15 Award
November 16, 2022

Page 2 of 4 ends

1 2
3 2
held on September 13, 2022, and a total of seven bids were received as summarized in Table 1 on the following page.

Table 1- Bid Result Summary
Firm Name Total Bid Amount Lowest Responsible
Bidder
Engineer’s Estimate $755,000
California Professional
Engineering, Inc.*
$604,514 X
Calpromax Engineering $644,706
Elecnor Belco Electric Inc. $662,973
PTM General Engineering. $666,006
Cross Town Electric. $683,489
DMX Inc. $735,119
International Line Builders, Inc. $747,500
Based on staff’s review of the bid documents, California Professional Engineering, Inc., was determined to have met the requirements as the lowest responsive and responsible bidder with a construction bid proposed in the total amount of $ 604,514.

At this time, the anticipated total construction cost for the project is estimated at $685,220, which includes construction, materials testing, labor compliance, inspection, and other costs typically associated with a construction project. Given the unpredictable nature of material pricing and availability, it is important to note that the Project costs and delivery timelines may continue to be impacted.

The existing Project budget is $541,077.82. Additional funding in the amount of $144,142.18 would be required to fully support this project; however, MSJC has agreed to pay their proportionate share of $228,407.00 (1/3 of total construction costs since one leg of the intersection is within their property) for the signal installation which will be reimbursed to the City once construction is complete and accepted.

Therefore, staff is requesting the approval of a BAR which would appropriate funds in the amount of $228,407 into Capital Projects Fund (Fund 320) for use towards the Project.

If approved by the City Council, the tentative project schedule would be as follows:

Construction Start: March 6, 2023
Construction End: May 31, 2023
City Council Acceptance: July 7, 2023
*The timeline above assumes no delays due to weather or unforeseen conditions.

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 2
Menifee

Mayor

and

City

Council

November

16,
2022
Page
299 of 1157

City of Menifee Staff Report
CIP 22-15 Award
November 16, 2022

Page 3 of 4 ends

1 2
3 2
no expansion of use beyond that existing at the time of the lead agency’s determination. Class 1 includes the following example of a project that would be exempt under this section: (c) [minor alterations to existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety). The Project is for the removal and replacements of ADA ramps, and installation of a new traffic signal. As well as new striping and traffic signs. All improvements are within existing city right-of-way. The proposed improvements are a negligible expansion of the existing use. The improvements described above are considered minor alterations to existing streets or similar facilities. The Project is exempt per Section 15301.

The proposed project is also exempt under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA (Section 15061(b)(3)). There is no possibility that the activity in question will have a significant effect on the environment because the proposed project is occurring in an area that is already heavily disturbed and is not environmentally sensitive.

STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community

FISCAL IMPACT
The total anticipated construction cost for the Project is estimated at $685,220. The available existing funding for this Project is summarized in Table 2 below.

Table 2- Existing Project Funding
Fund Project Account
Number
Available
Budget
Anticipated Cost
DIF City Wide
Circulation
Antelope
Road/MSJC
Traffic Signal
526-4555-58132 $537,264.00 $456,813.00
Capital Project* Antelope
Road/MSJC
Traffic Signal
320-4555-58132 $228,407.00 $228,407.00
Total $765,671.00 $685,220.00
*Includes $228,407 funding secured with execution of the Reimbursement Agreement with MSJC.

Approval of a BAR which would appropriate funds in the amount of $228,407 into Capital Projects Fund (Fund 320) and carry forward budget in the amount of $537,264 from FY 2021/2022 for use towards the Project.

Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 3
Menifee

Mayor

and

City

Council

November

16,
2022
Page
300 of 1157

City of Menifee Staff Report
CIP 22-15 Award
November 16, 2022

Page 4 of 4 ends

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ATTACHMENTS

1. Agreement with California Professional Engineering, Inc.

2. Reimbursement Agreement between City and MSJC

3. BAR – Fund 526 CIP 22-15

4. BAR – Fund 320 CIP 22-15

5. Project Location Map
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 4
Menifee

Mayor

and

City

Council

November

16,
2022
Page
301 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 1

CITY OF MENIFEE BID AND CONTRACT DOCUMENTS

OWNER-CONTRACTOR AGREEMENT
CIP 22-15 ANTELOPE ROAD/MSJC ENTRANCE TRAFFIC SIGNAL
This Owner -Contractor Agreement (“Agreement”) is made and entered into for the above referenced Project by and between the City of Menifee (“Agency”), and CALIFORNIA PROFESSIONAL ENGINEERING INC (“Contractor”), whose principal business address is 19062 San Jose Ave., La Puente , CA 91748 on the ________ day of ______________, 20_______.

In consideration of the mutual covenants and agreements set forth herein, the Agency and Contractor have mutually agreed as follows:

1. CONSTRUCTION
The Contractor agrees to do all the Work and furnish all the labor, services, materials and equipment necessary to construct and complete the Project in accordance with the Contract Documents (as hereinafter defined), including all work, labor, services, materials and equipment described and reasonably inferable from documents enumerated in Exhibit “A” attached hereto and incorporated herein by reference (such construction and furnishing of labor, service, materials and equipment hereinafter referred to as the “Work”) in a good worker-like and substantial manner and to the satisfaction of the Agency, in connection with the CIP 22 -15 ANTELOPE ROAD/MSJC ENTRANCE TRAFFIC SIGNAL to be constructed at the Antelope / MSJC Entrance in the City of Menifee, California. The term Contract Documents shall mean this Agreement, and all of the items enumerated in Exhibit “A” and all change orders or addenda issued by the Agency with respect thereto. Agency must consent in writing to any changes in the scope of Work. Exhibit “A” shall be deemed revis ed in accordance with any revisions for which Agency’s consent has been issued. Any revisions to the scope of Work for which Agency’s consent has not been issued shall be null and void.

The Contractor shall complete the Work in every detail to the satisfaction of the Agency, exclusive of maintenance periods, within the specified duration set forth in the Notice to Proceed.

Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 5
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and

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November

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2022
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290/031858-0008
7645681.2 a03/02/22 Page 2

4. DELAYS AND EXTENSIONS OF TIME
See Section 6-6 of the Special Provisions.

8. AUTHORIZED AGENCY REPRESENTATIVES
On behalf of the Agency, the City Engineer of the City of Menifee shall be the Agency’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement. The City E ngineer may delegate authority in connection with this Agreement to his/her assigned designees.

9. WORKERS’ COMPENSATION INSURANCE
a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which r equires every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.
b) The Contractor shall require each subcontractor to comply with the requirements of Section 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:
“I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for worker’s compensation or to undertake self -insurance in accordance with the Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 6
Menifee

Mayor

and

City

Council

November

16,
2022
Page
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290/031858-0008
7645681.2 a03/02/22 Page 3

provisions of that Code, and I will comply with such provisions bef ore commencing the performance of the Work of this Agreement.”

12. INDEPENDENT CONTRACTOR
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Agency. Agency shall have the right to control Contractor insofar as the results of Contractor’s services rendered pursuant to this Agreement; however, Agency shall not have the right to control t he means by which Contractor accomplishes such services.

13. LICENSES AND PERMITS
Contractor represents and declares to Agency that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profess ion. Contractor represents and warrants to Agency that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.

15. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 7
Menifee

Mayor

and

City

Council

November

16,
2022
Page
304 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 4
where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the tru th or falsity of the information. In the event the Agency seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years.

I have read and understood all of the provisions of this Section 15, above:
(Initial) (Initial)

17. AGR

EEMENT MODIFICATION
This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Agency and the Contractor.

IN WITNESS WHEREOF this Agreement is executed as of the date first written above.

AGENCY:

City of Menifee
By:

Armando G. Villa, City Manager
CO
NTRACTOR:

By:

Name: Van Nguyen, President and
Secretary______
Its:

APPROVED AS TO FORM:

By:

Jeffrey T. Melching, City Attorney
By:

Name:

Its:

ATTEST:

By:

Kay Vinson, Acting City Clerk
Contractor’s City Business License No.
793907, Class C10, A, and C20
State Contractor License No. & Class
19062 San Jose Ave.

Street Address
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 8
Menifee

Mayor

and

City

Council

November

16,
2022
Page
305 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 5
La Puente, CA 91748
City, State, Zip Code
[NOTE: In the event the Contractor is a Corporation, the signatures of two separate persons holding different offices must be provided.]
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 9
Menifee

Mayor

and

City

Council

November

16,
2022
Page
306 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 6

EXHIBIT A

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 10
Menifee

Mayor

and

City

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November

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2022
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290/031858-0008
7645681.2 a03/02/22 Page 7

EXHIBIT B

CONTRACT PRICE
Six Hundred Four Thousand Five Hundred Fourteen Dollars and Zero Cents ($604,514.00) The Contract Price for performing all Work described in the Contract Documents, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, as determined by the Agency.

Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 11
Menifee

Mayor

and

City

Council

November

16,
2022
Page
308 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 8
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 12
Menifee

Mayor

and

City

Council

November

16,
2022
Page
309 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 9
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 13
Menifee

Mayor

and

City

Council

November

16,
2022
Page
310 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 10
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 14
Menifee

Mayor

and

City

Council

November

16,
2022
Page
311 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 11
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 15
Menifee

Mayor

and

City

Council

November

16,
2022
Page
312 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 12
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 16
Menifee

Mayor

and

City

Council

November

16,
2022
Page
313 of 1157

290/031858-0008
7645681.2 a03/02/22 Page 13
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 17
Menifee

Mayor

and

City

Council

November

16,
2022
Page
314 of 1157

REIMBURSEMENT AGREEMENT – Mt. San Jacinto College (MSJC)Page 1 of 5 005157.00132
38904425.1

REIMBURSEMENT AGREEMENT
BETWEEN THE CITY OF MENIFEE AND MT. SAN JACINTO COLLEGE (MSJC) FOR CIP 22-15 ANTELOPE ROAD/MSJC ENTRANCE TRAFFIC SIGNAL

This reimbursement Agreement (“Agreement”) is entered into by and between City of Menifee (“CITY”) and Mt. San Jacinto College (“MSJC”) whose address is 1499 North State Street, San Jacinto, CA 92583 CITY proposes to improve an existing “tee intersection” with a traffic signal installation on Antelope Road and the main entrance of the MSJC Menifee Campus. All in the City of Menifee, California, hereinafter referred to as the “PROJECT”. MSJC owns, operates, and maintains one of the three legs that makes up the “tee intersection”.

Therefore, it is hereby mutually agreed between CITY and MSJC that:

I. WORK TO BE DONE
A. CITY shall prepare plans for the new traffic signal, ADA ramps, signs, and striping.

B. CITY shall construct the traffic signal, ADA ramps, signs and striping.

C. All work shall be performed in accordance with state and CITY standards. MSJC hereby acknowledges the CITY’s plans for work and agrees to the construction in the manner approved.

D. Deviations from the work described above, initiated by either CITY or MSJC, shall be agreed upon by both parties hereto under a Revised Notice to Owner. Such Revised Notices to Owner, approved by CITY and agreed to/acknowledged by MSJC, will constitute an approved revision, and are hereby made a part hereof. No work under said deviation shall commence prior to written execution by MSJC of the Revised Notice to Owner. Changes in the scope of the work will require an amendment to this Agreement in addition to the Revised Notice to Owner.

II. LIABILITY FOR WORK
A. Costs for installation by CITY are to include, but are not limited to, all elements of planning, design, construction, inspection, and project closeout.

B. Costs associated with the construction of the PROJECT will be shared 2/3 CITY (two legs of the intersection) and 1/3 MSJC (one leg of the intersection), as reflected in Section VI of this Agreement.

III. PERFORMANCE OF WORK
A. CITY will administer the construction contract to construct a fully functioning traffic signal on CIP 22- 15 Antelope Road/MSJC entrance traffic signal plans. CITY will provide construction management and inspection as well.

B. Engineering services for locating, making of surveys, preparation of plans, specifications, estimates, supervision, and inspection are to be furnished by CITY.

C. Pursuant to Public Works Case No. 2001-059 determination by the California Department of Industrial Relations dated October 25, 2002, work performed by the CITY’s contractor is a public work under the Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 18
Menifee

Mayor

and

City

Council

November

16,
2022
Page
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REIMBURSEMENT AGREEMENT – Mt. San Jacinto College (MSJC)Page 2 of 5 005157.00132
38904425.1
definition of Labor Code Section 1720(a) and is therefore subject to prevailing wage requirement.

D. The CITY agrees that if, during design or construction, the CITY requests or initiates any revision to the Plans and Specifications that would increase the cost of the PROJECT, such additional costs shall be borne by the CITY, except for revision(s) and cost(s) that are determined necessary to construct the PROJECT and could not reasonably have been foreseen at the time bid were received. The costs of any such necessary and unforeseeable revisions, and the cost of any revisions requested or initiated by MSJC, shall be reimbursed by MSJC as provided herein. The CITY shall promptly furnish MSJC with copies of any proposed change orders to or impacting MSJC’s costs relative to the PROJECT, or its share of the costs, within five (5) working days of initiation of the changed conditions to such contract, which charge orders shall be subject to MSJC approval if and to the extent MSJC’s share of the costs are affected thereby. MSJC will review and respond to such proposed change orders within five (5) business days of receipt by MSJC. The Parties acknowledge that MSJC is subject to a limitation imposed by Public Contract Code section 20659, limiting MSJC’s ability to approve change orders without securing bids to 10 percent of the original contract.

IV. PAYMENT FOR WORK
A. In any event, if the final bill exceeds 110% of the estimated cost of this Agreement as reflected in Section VI of this Agreement, an Amended Agreement shall be executed by the parties to this Agreement prior to the payment of CITY’s final bill.

B. Detailed records from which the billing is compiled shall be retained by CITY for a period of three years from the date of the final payment and will be available for audit by CITY and/or Federal auditors. MSJC agrees to comply with Contract Cost Principles and Procedures as set forth in 48 CFR, Chapter 1, Part 31, et seq., 23 CFR, Chapter 1, Part 645.

C. 1/3 of the final construction costs will be paid (reimbursed) by MSJC to the CITY within the first 60 days after (1) construction has been completed and the PROJECT accepted by the CITY and (2) the CITY has submitted an invoice to MSJC for its share of the costs of the PROJECT as set forth herein.

V. GENERAL CONDITIONS
A. If CITY’s PROJECT which precipitated this Agreement is canceled or modified so as to eliminate the necessity of work described herein, CITY will notify MSJC in writing and CITY reserves the right to terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms and conditions for terminating this Agreement and reconciling outstanding costs/reimbursements due.

B. CITY shall prepare all documentation and obtain any and all environmental clearances as necessary for the construction of the facilities, including but not limited to compliance with requirements imposed under the California Environmental Quality Act (CEQA).

C. MSJC and CITY each hereby agree to indemnify, defend, and hold harmless the other party and their respective directors, officials, officers, employees, and agents from and against any claims, actions, damages, expenses, costs (including attorney’s fees and costs of litigation), and liabilities arising out of or in any manner connected with the activities governed by this Agreement due to any negligent acts, errors, or omissions or willful misconduct of the indemnifying party performed in connection with such party's duties and obligations hereunder.

Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 19
Menifee

Mayor

and

City

Council

November

16,
2022
Page
316 of 1157

REIMBURSEMENT AGREEMENT – Mt. San Jacinto College (MSJC)Page 3 of 5 005157.00132
38904425.1
D. The CITY shall cause its contractors for the construction of the PROJECT to obtain insurance coverage sufficiently broad to insure the matters set forth in this Agreement and to include MSJC as an additional insured on all insurance policies that the CITY requires its contractors to provide. As evidence of such insurance coverage, the CITY shall, prior to commencement of construction of the PROJECT, provide MSJC with copies of the certificates of insurance and insurance endorsements in forms that are reasonably acceptable to MSJC. The CITY shall require its Contractor to provide performance and payments bonds in an amount equal to 100 percent of the contract amount.

E. The CITY shall require in its contract for the construction of the PROJECT that its contractor be fully informed of and comply with all laws, ordinances, rules and regulations, including but not limited to, all applicable requirements of the California Labor Code, prevailing wage laws, and Public Contract Code, in connection with the PROJECT.

F. The undersigned individuals hereby warrant and represent that they each have full legal authority to sign this Agreement and bind the respective party hereto.

G. This Agreement will be construed and interpreted under and governed and enforced according to the laws of the State of California.

H. This Agreement contains the entire agreement between the parties regarding the subject matter of this Agreement. No subsequent agreement, representation, or promise made by either party hereto, or by or to any employee, officer, agent or representative of either party, will be of any effect unless it is in writing and executed by the party to be bound thereby. No person is authorized to make, and by execution hereof each of the parties acknowledges that no person has made, any representation, warranty, guaranty, or promise except as set forth herein; and no such agreement, statement, representation, or promise that is not contained herein will be valid or binding on any of the parties.

I. This Agreement may be executed simultaneously in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. For purposes of this Agreement, facsimile and electronic signatures will be deemed to be original signatures.

J. Each of the parties has reviewed this Agreement and each has had the opportunity to have its respective counsel review and revise this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not apply in the interpretation of this Agreement or any amendments or exhibits thereto. In this Agreement the neuter gender includes the feminine and masculine, and singular number includes the plural, and the words “person” and “party” include corporation, partnership, firm, trust, or association wherever the context so requires. The recitals and captions of the sections and subsections of this Agreement are for convenience and reference only, and the words contained therein will in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Agreement.

K. If any part, term or provision of this Agreement is held by a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining provisions will not be affected, and the rights and obligations of the Parties will be construed and enforced as if this Agreement did not contain the particular part, term or provision held to be invalid.

L. Pursuant to Section VI. MSJC shall reimburse the city 1/3 of the construction costs.

Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 20
Menifee

Mayor

and

City

Council

November

16,
2022
Page
317 of 1157

REIMBURSEMENT AGREEMENT – Mt. San Jacinto College (MSJC)Page 4 of 5 005157.00132
38904425.1
VI. COST ESTIMATES AND WAIVERS
Please refer to Attachment A for quantities and reimbursement fees.

Reimbursement Agreement
Description MSJC CITY
Design
Prepare Plans, Specifications
And Estimates for New Traffic
Signal, ADA Ramps, Striping
and Signage; Obtain Permitting;
And Advertise for Bidding.

CITY’s responsibility
Construction
New Traffic Signal, ADA
Ramps, Striping and Signage;
Contingency; Labor
Compliance; and
Materials/Geotechnical Testing.
1/3 MSJC’s
responsibility
($228,407.00)
2/3 CITY’s responsibility
($456,813.00) (MSJC to
reimburse CITY 1/3 of cost for
construction upon completion
of project)
ESTIMATED TOTAL COST $685,220.00
**MSJC and City agree to waive all design reviews, encroachment permits, and inspection fees. **THE ACTUAL REIMBURSEMENT COST TO CITY BY MSJC FOR ITS SHARE OF THE ABOVE- DESCRIBED WORK SHALL BE DETERMINED AT COMPLETION OF WORK.

Project Cost:

Construction costs for the project are as follows:

Construction Contract: $604,514.00
Construction Contingency(10%): $60,451.00
Consultant Labor Compliance: $11,500.00
Construction Management/Inspection $0.00
Materials Testing/Geotechnical $8,755.00 Total Construction Cost: $685,220.00
Signatures on Following Page
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 21
Menifee

Mayor

and

City

Council

November

16,
2022
Page
318 of 1157

REIMBURSEMENT AGREEMENT – Mt. San Jacinto College (MSJC)Page 5 of 5 005157.00132
38904425.1
IN WITNESS WHEREOF, the above parties have executed this Agreement the day and year above written.

CITY OF MENIFEE: MT. SAN JACINTO COLLEGE (MSJC):

By By
Name Date Name Date
Title Title
APPROVAL RECOMMENDED:

By By
Name Date Name Date
Title Title
Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 22
Menifee

Mayor

and

City

Council

November

16,
2022
Page
319 of 1157

RESOLUTION NO. 22-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2022/23 OPERATING BUDGET
WHEREAS, the City of Menifee, California adopted a budget for the fiscal year 2022/23 with Resolution No. 22-1157 on June 1st , 2022; and
WHEREAS, from time to time the City of Menifee receives unanticipated revenues, experiences unanticipated expenditures, and/or identifies alternative funding sources; and WHEREAS, it is in the best interest of the citizens of the City of Menifee to allocate budget resources to continue the operations of the City of Menifee; and WHEREAS, the City Council of the City of Menifee needs to amend the fiscal year 2022/23 budget as follows:

AMENDMENTS TO ADOPTED BUDGET:

DIF Circulation Fund 526 Adopted FY 2022/23 Revenue Budget $3,020,000

1. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
TOTAL:

Amended DIF Circulation Fund 526 FY 2022/23 Revenue Budget: $3,020,000 DIF Circulation Fund 526 Adopted FY 2022/23 Expenditure Budget: $3,822,500

2. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
October 19, 2022
CIP 13-03: Holland Road/I-215
Overcrossing (FY21/22 Budget Carry-
Over)
526-4555-58021 $1,723,638
November 16, 2022
CIP 22-15: Mt. San Jacinto Entrance
Traffic Signal Project (FY21/22 Budget
Carry-Over)
526-4555-58132 537,264
TOTAL: $2,260,902
Amended DIF Circulation Fund 526 FY 2022/23 Expenditure Budget: $6,083,402

3. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL:

Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 23
Menifee

Mayor

and

City

Council

November

16,
2022
Page
320 of 1157

Amending the Fiscal Year 2022/23 DIF Citywide Circulation Signals Fund 526 FY21/22 Carry-Over- CIP 22-15 MSJC Traffic Signal Project 2 4
3 9
7 5

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS:

The annual budget for the DIF Citywide Circulation Fund 526 for the City of Menifee for fiscal year 2022/23 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:

Amended DIF Circulation Fund 526 FY 2022/23 Budget: $3,020,000

Expenditures:

CIP 22-15: Mt. San Jacinto Entrance Traffic Signal Project (FY21/22 Budget Carry-Over)
$537,264
Amended DIF Circulation Fund 526 FY 2022/23 Budget: $6,083,402 PASSED, APPROVED AND ADOPTED this 16th day of November 2022. _____________________________
Bill Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ ____________________________ Kay Vinson, Acting City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 24
Menifee

Mayor

and

City

Council

November

16,
2022
Page
321 of 1157

RESOLUTION NO. 22-____

AMENDMENTS TO ADOPTED BUDGET:

Capital Projects Fund 320 Adopted FY 2022/23 Revenue Budget: $2,484,099

1. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
November 16, 2022 CIP 22-15: MSJC Entrance Traffic
Signal (Reimbursement Agreement) 320-3899 $228,407
TOTAL: $228,407
Amended Capital Projects Fund 320 FY 2022/23 Revenue Budget: $2,712,506 Capital Projects Fund Adopted FY 2022/23 Expenditure Budget: $2,474,099

2. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
October 19, 2022 Holland Road Water, Recycled Water, and Sewer Utilities Project 320-4555-58021 $315,000
October 19, 2022 CIP 13-03: Holland Road/I-215 Overcrossing (FY21/22 Budget Carry-Over) 320-4555-58021 1,152,532.96 November 16, 2022 CIP 22-15: MSJC Entrance Traffic
Signal 320-4555-58132 228,407
TOTAL: $1,695,939.96
Amended Capital Projects Fund 320 FY 2022/23 Expenditure Budget: $4,170,039.96

3. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL:

Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 25
Menifee

Mayor

and

City

Council

November

16,
2022
Page
322 of 1157

Amending the Fiscal Year 2022/23 Capital Project Fund 320 Budget CIP 22-15: MSJC Entrance Traffic Signal Project
2 4
3 9
7 5

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS:

The annual budget for the Capital Projects Fund for the City of Menifee for fiscal year 2022/23 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:

CIP 22-15: MSJC Entrance Traffic Signal (Reimbursement
Agreement) $228,407
Amended Capital Projects Fund 320 FY 2022/23 Budget: $2,474,099

Expenditures:

CIP 22-15: MSJC Entrance Traffic Signal $228,407
Amended Capital Projects Fund 320 FY 2022/23 Budget: $4,170,039.96 PASSED, APPROVED AND ADOPTED this 16th day of November 2022. _____________________________
Bill Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ ____________________________ Kay Vinson, Acting City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.15
Bid

Award

and

Agreement

with

California

Professional

Engineering,

Inc.

for

Construction

Services

for

Antelope
Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 26
Menifee

Mayor

and

City

Council

November

16,
2022
Page
323 of 1157

KEY MAPN.T.S.

ANTELOPE RD.

MSJC ENTRANCE
Item Title: 10.15 Bid Award and Agreement with California Professional Engineering, Inc. for Construction Services for Antelope Road/MSJC Entrance Traffic Signal and Reimbursement Agreement with Mt. San Jacinto College Item Page Number: 27
Menifee Mayor and City Council                                                                               November 16, 2022 Page 324 of 1157

CITY OF MENIFEE
SUBJECT: Final Map, Subdivision Improvement Agreement and Bonds for Tract Map 36658-1, Cimarron Ridge, by Pulte Homes
Company, LLC.

MEETING DATE: November 16, 2022
TO: Mayor and City Council
PREPARED BY: Run Chen, Senior Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve and authorize the filing of final map 36658-1, Cimarron Ridge, by Pulte Homes Company, LLC, located west of Valley Boulevard between Chambers Avenue and Thornton Avenue; and

2. Approve and authorize the City Manager to execute the Subdivision Improvement Agreement to guarantee completion of required public improvements associated with Tract Map 36658-

1. DISCUSSION
Tract Map (“TM”) 36658-1, also known as Cimarron Ridge (“Project”), is a proposed subdivision of 36.03 gross acres of land to be subdivided into 134 total lots for residential use, 18 lots for open space and 7 lots for roads and utilities. Tract Map 36658-1 is the first phase of the Cimarron Ridge development by Pulte Homes. The Project is located west of Valley Boulevard between Chambers Avenue and Thornton Avenue.

Pulte Homes Company, LLC. (“Developer”) is now requesting approval and filing of the final map for Tract 36658-1 and approval of the associated Subdivision Improvement Agreement (“SIA”) as required by the Project’s conditions of approval. The SIA requires that improvement securities are posted to guarantee the completion of the required onsite and offsite improvements. The SIA requires that public improvements be completed within 24 months from the date of City Council approval.

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 1
Menifee

Mayor

and

City

Council

November

16,
2022
Page
325 of 1157

City of Menifee Staff Report
Final Map 36658-1 Cimarron Ridge
November 16, 2022

Page 2 of 3 ends

1 1
6 4
The subdivision improvements to be completed by the Developer per the SIA include:

Offsite Improvements
•Drainage improvements and widening of the south side of Thornton Avenue located between Family Circle and Murrieta Road
•Installation of a traffic signal at the intersection of Murrieta Road and Thornton Avenue •Water line in Valley Boulevard between McLaughlin Road and Ridgemoor Road Onsite Improvements
•Streets
•Drainage
•Water/Recycled Water Systems
•Sewer System
Staff has reviewed the Developer’s requests and determined that the SIA meets the requirements of the Project’s conditions of approval. A summary of the bonds being posted to guarantee the required improvements are shown in the tables below.

Table 1 – Offsite Public Improvements
Improvement Security Faithful Performance Labor & Materials Streets and Drainage 0247355 $ 656,000 $ 328,000
Total $ 656,000 $ 328,000
Table 2 – Offsite Water System Improvements
Improvement Security Faithful Performance Labor & Materials Water System SUR0073395 $ 3,195,929 $ 1,598,000
Total $ 3,195,929 $ 1,598,000
Table 3 – Onsite Public Improvements
Improvement Security Faithful Performance Labor & Materials Streets and Drainage 0247363 $ 2,334,000 $ 1,167,000
Water System 0247363 $ 410,500 $ 205,200
Sewer System 0247363 $ 312,000 $ 156,000
Total $ 3,056,500 $ 1,528,250
The total securities required for all improvements have been provided by the Developer in the total amount of $6,908,429.

STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 2
Menifee

Mayor

and

City

Council

November

16,
2022
Page
326 of 1157

City of Menifee Staff Report
Final Map 36658-1 Cimarron Ridge
November 16, 2022

Page 3 of 3 ends

1 1
6 4

ATTACHMENTS

1. Final Map – TM 36658-1

2. Subdivision Improvement Agreement

3. Bonds
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 3
Menifee

Mayor

and

City

Council

November

16,
2022
Page
327 of 1157

Item Title: 10.16 Final Map, Subdivision Improvement Agreement and Bonds for Tract Map 36658-1, Cimarron Ridge, by Pulte Homes Company, LLC Item Page Number: 4
Menifee Mayor and City Council                                                                               November 16, 2022 Page 328 of 1157

PM NO. 13384
PMB 89 / 96-100
PM NO. 14940
PMB 109 / 47 PM NO. 14409 PMB 75 / 86
TR NO. 22483
MB 207 / 44-49
PM NO. 17338
PMB 109 / 36
PM NO. 13126
PMB 72 / 18
TR NO. 28504-3
MB 364 / 1-5
PM NO. 20285PMB 132 / 25-27
TR 29025
MB 286 / 16-17
NW 1/4, SW 1/4, SEC 17 NE 1/4, SW 1/4, SEC 17
SE 1/4, SW 1/4, SEC 17
PM NO. 36657
PMB 245 / 70-87
PAR. 1
PAR. 2
PAR. 3
PAR. 4
PAR. 1
PAR. 1
LOT "S"
LOT "Q"
LOT "P"
LOT "R"
SW 1/4, SW 1/4, SEC 17
PM NO. 36657
PMB 245 / 70-87
PAR. 7
PAR. 6 PAR. 5
TR NO. 28504-2
MB 359 / 17-21
LOT "RR"
LOT "SS"
LOT "TT"
LOT "UU"
PM NO. 22482
PMB 152 / 60-61PARCEL B, LLA 4506
REC. 9-12-2002
AS DOC. NO.
2002-506724, O.R.

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 5
Menifee

Mayor

and

City

Council

November

16,
2022
Page
329 of 1157

PM NO.
17338
PMB 109 / 36
PM NO. 13126
PMB 72 / 18
TR NO 20986-1
MB 315 / 38-43
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 6
Menifee

Mayor

and

City

Council

November

16,
2022
Page
330 of 1157

PM NO. 14409 PMB 75 / 86
NE 1/ 4, NW 1 / 4, SEC. 20
PM NO. 36657
PMB 245 / 70-87
PAR. 1
PAR. 2
LOT "Q"
LOT "S"
PAR. 1
LOT "R"
PAR. 1
PAR. 3
LOT "TT"
LOT "UU"
LOT "SS"
LOT "RR"
LOT "P"PARCEL B, LLA 4506
REC. 9-12-2002 AS DOC.

NO. 2002-506724, O.R.

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 7
Menifee

Mayor

and

City

Council

November

16,
2022
Page
331 of 1157

PM NO. 14409 PMB 75 / 86
NE 1/ 4, NW 1 / 4, SEC. 20
PARCEL B, LLA 4506
REC. 9-12-2002 AS DOC.

NO. 2002-506724, O.R.

PAR. 2
PAR. 3

PARCEL MAP
NO. 36657
PMB 245 / 70-87
PM NO. 36657
PMB 245 / 70-87
LOT "Q"
LOT "P"
LOT "R"
LOT "S"
LOT "TT"
LOT "UU"
LOT "SS"
LOT "RR"
N
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 8
Menifee

Mayor

and

City

Council

November

16,
2022
Page
332 of 1157

NE 1/ 4, NW 1 / 4, SEC. 20
PAR. 2
PAR. 3
PARCEL MAP NO.
36657
PMB 245 / 70-87
LOT "Q"
PM NO. 36657
PMB 245 / 70-87
LOT "R"
PM NO. 36657PMB 245 / 70-87
LOT "SS"
LOT "TT"
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 9
Menifee

Mayor

and

City

Council

November

16,
2022
Page
333 of 1157

PM NO. 14409
PMB 75 / 86
PAR. 2
PARCEL MAP NO.
36657
PMB 245 / 70-87
LOT "R"
PM NO. 36657PMB 245 / 70-87
LOT "S"
LOT "UU"
PAR. 2
PM NO.
36657
PMB 245
/ 70-87 LOT "S"
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 10
Menifee

Mayor

and

City

Council

November

16,
2022
Page
334 of 1157

PM NO. 14409
PMB 75 / 86
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 11
Menifee

Mayor

and

City

Council

November

16,
2022
Page
335 of 1157

PARCEL B, LLA 4506
REC. 9-12-2002
AS DOC. NO.
2002-506724, O.R.

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 12
Menifee

Mayor

and

City

Council

November

16,
2022
Page
336 of 1157

NE 1/ 4, NW 1 / 4, SEC. 20
PM NO. 36657
PMB 245 / 70-87
LOT "Q"
LOT "P"
LOT "RR"
PARCEL B, LLA 4506
REC. 9-12-2002
AS DOC. NO. 2002-506724, O.R.

TR NO. 22483
MB 207 / 44-49
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 13
Menifee

Mayor

and

City

Council

November

16,
2022
Page
337 of 1157

NE 1/ 4, NW 1 / 4, SEC. 20
PM NO. 36657
PMB 245 / 70-87
LOT "Q"
LOT "RR"
Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 14
Menifee

Mayor

and

City

Council

November

16,
2022
Page
338 of 1157

PM NO. 14409
PMB 75 / 86
LOT "TT"
LOT "R"
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Item Title: 10.16 Final Map, Subdivision Improvement Agreement and Bonds for Tract Map 36658-1, Cimarron Ridge, by Pulte Homes Company, LLC Item Page Number: 15
Menifee Mayor and City Council                                                                               November 16, 2022 Page 339 of 1157

PM NO. 36657PMB 245 / 70-87
LOT "Q"
LOT "S"
LOT "RR"
Item Title: 10.16 Final Map, Subdivision Improvement Agreement and Bonds for Tract Map 36658-1, Cimarron Ridge, by Pulte Homes Company, LLC Item Page Number: 16
Menifee Mayor and City Council                                                                               November 16, 2022 Page 340 of 1157

NE 1/ 4, NW 1 / 4, SEC. 20 PAR. 3
PARCEL
MAP NO.
36657
PMB 245
/ 70-87
NE 1/ 4, NW 1 / 4, SEC. 20
Item Title: 10.16 Final Map, Subdivision Improvement Agreement and Bonds for Tract Map 36658-1, Cimarron Ridge, by Pulte Homes Company, LLC Item Page Number: 17
Menifee Mayor and City Council                                                                               November 16, 2022 Page 341 of 1157

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Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 18
Menifee

Mayor

and

City

Council

November

16,
2022
Page
342 of 1157

1 of 9

CITY OF MENIFEE

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 36658-1

THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this _____________ day of ___________________________, 20 ___________, by and between Pulte Homes Co. LLC., hereinafter referred to as "Subdivider," and the City of Menifee, a municipal corporation of the State of California, hereinafter referred to as "City." City and Subdivider may sometimes herein b e referred to individually as a "party” and collectively as the “parties.”

RECITALS:

A. Subdivider has prepared and submitted to City for final approval and recordation a final map or Tract map (the "Map") of a unit of land in the City of Menifee, County of Riverside, which unit of land is known as Tract N o. 36658-1 (the "Tract") p ursuant to the provisions of Section 66410, et seq. of the California Government Code (the "Subdivision Map Act"). The Subdivision Map Act and City ordinances and regulations relating to the filing, approval and recordation of subdivision maps are sometimes collectively referred to in this Agreement as the “Subdivision Laws.”

B. A tentative map of the Tract has been approved subject to t he Subdivision Laws and to the requirements and conditions contained in Planning Commission Resolution No. 15-466 (the “Resolution of Approval”). The Resolution of Approval is on file in the office of the City Clerk and is incorporated into this Agreement by reference.

C. Prior to approval of th e Map, Subdivider is required to install or agree to install certain public an d private improvements (the "Improvements").

D. The Improvements have not been installed and accepted at this time.

E. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the Improvements as provided in Section 66462 of the Subdivision Map Act. In consideration of approval of a final map for the Tract by the City Council, Subdiv ider desires to enter into this Agre ement, whereby Subdivider promises to install and complete, at Subdivid er’s own ex pense, all the public improvement work required by City in connection with the proposed Tract . Subdivider has secured this Agreement by improvement security required by the Subdivision Laws and approved by the City.

NOW, THEREFORE, it is agreed by and between the parties hereto as follows:

1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish complete original improvement plans for the construction, installation and completion of the Improvements meeting the requ irements of the City Engineer. The Improvement Plans for the Tract shall be maintained on file in the office of the City Engineer and s hall be incorporated into this Agreement by reference. All references in this Agreement to the Improvement Plans shall include reference to any specifications for the Improvements as approved by the City Engineer.

2. Improvements. Subdivider shall const ruct the Improvements r equired to be cons tructed or agreed to be constructed under the Resolution of Approval and this Agreement. The Improvements include on- site and off-site public improvements and their estimated costs, are lis ted and described in Exhibit "A", attached hereto and expressly made a part hereof by this reference. Subdivider shall bear the full cost to furnish all labor, equipment, and materials necessary to complete all Improvements . The methods, standards, specifications, sequence, and scheduling of construction shall be as approved by the City Engineer.

The total estimated cost for construction of all Improvements for the Tract is Six Million Nine Hundred Eight Thousand Four Hundred Twenty Nine and 00/100 ($6,908,429.00).

3. Improvement Security . Subdiv ider s hall at all times guarantee Subdivider’s performance of this Agreement by furnishing to City, and maintaining, good and sufficient security as required by the Subdivision Laws on forms and in the amounts approved by City for the purposes as follows:

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 19
Menifee

Mayor

and

City

Council

November

16,
2022
Page
343 of 1157

2 of 9

A. One class of security to be provided by Subdivider, hereinafter referred to as "performance security," shall assure the faithful performance of this Agreement including cons truction of the Improvements, payment of Subdivider’s fair share of Improvements whic h have been or will be constructed by others (“Participatory Improvements”), and payment of plan check and p ermit fees. The performance security shall also include good and sufficient security in the amount of one hundred percent (100%) of the estimated c ost of setting subdivision monuments as stated hereafter in this Agreement (“Monumentation Security”). A second class of security to be provided by Subdivider, hereinafter referred to as "payment security," shall assure the payment of the cost of labor, e quipment and materials supplied to construct the Improvements. A thi rd class of security to be provided by Subdivider, hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the Improvements for a period of one year fol lowing the completion and acceptance of the Improvements. Subdivider shall furnish performance and payment security prior to and as a condition precedent to City Council approval of the Map.

Subdivider shall provide warranty security after Improvements ar e complete and accepted by the City Council and prior to or concurrently with the final release of performance security. Warranty security shall not be required for Monumentation or Participatory Improvements. However, the City may utilize Monumentation Security for performance of or payment for the work in accordance with the Subdivision Map Act.

As part of the obligation secured by each of the performance security, payment security and warranty security, and in addition to the face amount of each such security, eac h such security shall include and assure the payment of costs and reasonable expenses and fees , including reasonable attorney's fees, incurred by City in suc cessfully enforc ing the o bligations thereby secured.

B. Improvement security shall c onform with Section 66499 of the California Government Code and may be one or more of the following:

1) A cash deposit with City or a responsible escrow agent or trust company, at City's op tion.

2) Surety bonds, of the form specified in subsection 66499.2 o f the Californ ia Government Code, issued by a surety or sureties list ed in the U.S. Department of Treasury C ircular 570 (latest version).

3) Certificates of deposit, in C ity's name, from one or more financial institutions subject to regulation by the stat e or federal g overnment and having a financial quality rating of "A" or better and a commitment reliability rating of "R -2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office).

4) Irrevocable letters of credit, in a form acceptable to and approved by the City Attorney, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the compl etion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or att achment by any creditor of the depositor until released by City. Letters of credit shall guarantee th at all or any portion of the funds available pursuant to the letters of credit will b e paid upon th e written demand of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The dur ation of any suc h letter of credit shall be for a period of not less than one year fr om the execution of the agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration.

C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal one hundred percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. The amount of Payment security shall equal the amount of t he amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate security. War ranty security shall equal Ten P ercent (10%) of the amount of performance security except as otherwise set forth in Exhibit A. The securities required by this Agreement shall b e kept on fi le with the City Clerk. The terms of the security documents specifi ed in this Agreeme nt are incorporated into this Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 20
Menifee

Mayor

and

City

Council

November

16,
2022
Page
344 of 1157

3 of 9
Agreement by this reference. If any sec urity is replaced by another approved s ecurity, the replacement shall be filed with the Ci ty Clerk and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement. Upon filing of a replacement security with the City Clerk, the former security may be released. The City Engineer shall approve replacement of security.

D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract map or waiver of Tract map) rather than to i ndividual security instruments. The fees shall be paid separately for each dif ferent form and/or source (surety or financial institution) of security initially submitted and for substitution of securities but shall not be required for submittal of warrant y security i f the warranty security i s of the same form and from the same sourc e as the performance security it replaces. Administrative fees for security shall be as follows:

1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B ., which require the establishment of evidence of the reliabi lity of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00).

3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.

E. Security shall not expire, be reduced, or become wholly or partially invalid for any reason, including non-payment of premiums, modifications of t his Agreement and/or expiration of the time for performance stated in this Agreement.

F. Security shall be released in the following manner:

1) Performance security shall be released upon the final completion and ac ceptance or approval, by the City Counc il of the Improvements subject to the provisions of Section 10 of this Agreement.

2) The City Engineer may authorize a one-time 50% reduction of performance security as work progresses, upon application by Subdivider . In no event shall security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%).

3) If City receives no notice of recorded clai ms of lien, labor and materials security shall be released in full 90 days after final acceptance and/or approval by the City Council, of the Improvements. If City receives notice o f any recorded lien, the provisions of the Subdivision Map Act shall apply.

4) No security given for the guarantee or warranty of work shall be released until the expi ration of the warranty period and until any claims filed during the warranty period have been settled.

As provided in paragraph 13 of this Agreement , the warranty period shall not commence until final acceptance of al l the work and improvements by the City pursuant to Paragraph 10.

Warranty security not utilized during the warranty period shall be re leased one year after final acceptance or approval by the City Council of all Improvements. However, if at the end of the one-year warranty period, there are one or more outstanding requests by City for performance of wor k or provision of materia ls under the terms of the warranty, warranty security shall be retained un til the outstanding requests are satisfied or until Sub divider has made other arrangements satisfactory to the City Engineer.

5) City may retain from any security released an amount sufficient to cov er costs and reasonable expenses and fees, including reasonable attorneys’ fees.

4. Permits Required. Prior t o commencing any phase of work, Subdivi der shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits.

5. Off-site Improvements . W hen the construction of one or more of the Improvements requires or necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 21
Menifee

Mayor

and

City

Council

November

16,
2022
Page
345 of 1157

4 of 9
best efforts pur chase such real property at a reasonable price. In the event that S ubdivider is unsuccessful, despite its best efforts, to acquire such real property at a reasonable pri ce, Subdivider may request in writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a separate written agreement in a f orm acceptable to the City Attorney. Said separate agreement shall provide that Subdivider advanc e to City funds in an amount approved by the City to acquire the real property. Any unexpended portion of said advance shall be refu nded to Subdivider. In no event shall the failure of Subdivider or City to acquire such real proper ty excuse, waive, or otherwise terminate Subdivider's obligation to construct the applicable i mprovement pursuant to this Agreement or the Conditions of Approval.

6. Completion of Improvements; Inspection.

6.1 Construction of Improvement s. Subdivider shall be gin const ruction of the Improvements within ninety (90) days and shall complete const ruction within twe nty-four (24) months after the approval of this Agreement. Porti ons of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete constructio n of the Improvements within the specified time periods shall c onstitute cause for City, in its sole discretion and when it deems necessar y, to declare Subdivider in default of this agreement, to revise improvement security requirements as necessary to ens ure completion of the improvements, and/or to require modifications in the sta ndards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this agreement or Subdivider's obligations hereunder . The City may use the Securities to construct the improvements or portions thereof at the City’s sole discretion.

6.2 Inspection. Subdivider s hall at all times maintain proper facilities and safe access for inspection of th e public improvements by C ity and to the shops wherein any work is in preparation. Upon completion of the work, the Subdivider may request a final inspection by the City Engin eer or the City Engineer’s authorized repres entative. If the City Engineer or the designated representative determines that the work has been completed in accordance with this Agreement, then t he City Engineer shall certify the completion of the public improvements to the City Council. No improvements shall be finally accepted unless a ll aspects of the work hav e been inspected and determined to have been completed in accordance with t he Improvement Plans and City standards and accepted by the City as descri bed in Paragraph 10 of this Agreement. Subdi vider shall bear all costs of plan check, inspection and certification.

7. Force Majeure. In the event that Subdivi der is unable to perf orm within the time limi ts herein due to strikes, act of God, or other events beyond Subdivider's control, the time li mits for obligations affected by such events will be extended by the period of such events.

8. Time Extension. Subd ivider may make appli cation in w riting to the City Council for an extension of time for complet ion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or condit ionally approve the extension with addi tions or revisions to the terms and conditions of this Agreement.

As a condition of the time e xtension, Subdivider shall furnish securities, similar in form and substance to t hose required in SECTION 3 hereinabove, t o cover the period of extension. The v alue of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warrant y security on completed Improvements, as determined by the City Engineer.

9. Survey Monuments . Befor e final acceptance of street improvements, Subdivider shall place survey monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the Menifee Municipal Code. Subdivider shall provide the City Engineer written proof tha t the monuments have been se t, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie-outs for monuments set in public streets.

10. Final Acceptance of Improvements . At the comp letion of construction and prior to acc eptance of the Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certi fications from Subdivider's engineers or surveyors, approval letters from other agencies having jurisd iction over and approval authority for improvements required Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 22
Menifee

Mayor

and

City

Council

November

16,
2022
Page
346 of 1157

5 of 9
by this Agreement or the Conditions of Approval, and any required construction quality docume ntation not previously submitted.

Upon receipt of said request , the City Engi neer or a duly authorized representative will review the required documentation and will inspect the Im provements. If the Improvements are determined to be in accordance with appli cable City standards and specifications, and as provided her ein, obligations required by the Condit ions set forth in the Resolution of Approval and this Agreement have been satis fied, and Subdivider has provided revised plans as required in Paragraph 12, hereinafter, the City Engineer shall recommend acceptance of the Improvement s by the City Council.

11. Injury to Improvements . Until such time as the Improvements are accepted by City in accordance with Paragraph 10, Subdivider shall be res ponsible for and bear the risk of loss to any of the improvements construct ed or installed . Until s uch time as all Improvements required by this Agreement are fully completed and accepted by Ci ty, Subdivider will be responsible for the care, maintenance of , and any damage to such improvements. City shall not, nor shall any officer or employee t hereof, be liable or res ponsible for any accident, loss or damage, regardless of cause, happening or oc curring to the work or improvements specified in this Agreement prior to th e completion and acceptance of the work or improvements. All such risks sh all be the responsibility of and are hereby assumed by Subdivider.

12. Revisions to Plans . When the Improvements have been inspected and approved by the City Engineer, Subdivider s hall make any necessary revisions to the original plans held by City, so the plans depi ct the actual Im provements constructed. When necessary, revisions have been made, each separate sheet of the plans shall be clearly marked with the words "A s-Built," "As-Constructed," or "Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer.

13. Improvement Warranty. Subdivider hereby guarantees the Improvements to Cit y for a per iod of one (1) year, beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor done, or defective materials f urnished, and shall repair or replace such defective work or materials. If within the warranty per iod any work or i mprovement or part of any work or improvement done, furnished, installed, const ructed or caused to be done, furnished, installed or construc ted by Subdivi der fails to fulfill any of the requirements of this Agreemen t or the improvement plans and specificat ions referred to herein, Subdivider shall without delay and without any cost to City, repair or replace or reconstruct any defective or otherwise unsatisf actory part or parts of the work or structure. Should Subdivi der fail to act pr omptly or in accordance with this requirement, Subdivider hereby authorizes City, at City’s sole option, to perform the work twenty (20) days after mailing written notice of default to Subdivider and to Subdivider’s Surety and agrees to pay the cost of such work by City. Should City determine that an urgency requires repairs or replacements to be made bef ore Subdivider can be notified, City may, in its sole discret ion, make the necessary repairs or replacement or perform the necessary wor k and Subdi vider shall p ay to City the cost of such repairs.

14. Release of Security . City shall retain and release s ecurities in accordance with the provisions of Section 3 of t his agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a titl e report or other evidence suffici ent to show claims of lien, if any, that may affect the amount of payment security released.

15. City Right to Cure. If Subdivider fails to perform any obligation hereunder and su ch obligation has not been performed, or commenced and diligently pursued, within sixty (60) days after written notice o f default from City, then City may perform the obligation, and Sub divider sh all pay the entire cost of such performance by City including costs of suit an d reasonable attorney's fees incurred by City in enforcing such obligation. In cases of emergency or compelling public interest, as determined by the City Engineer, the requirement for written notice of default and/or the passage of sixt y (60) days shall be deemed waived and all other provisions of this Article shall remain in effect.

16. Injury to Public Improvements, Public Property or Public Utility Facilities . Subdivider shall replace or have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities facilities and surveying or subdivision monuments which are destroyed or damaged as a result of any work performed under this Agreement. Subdivider shall bear the entire cost of replacement or rep airs Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 23
Menifee

Mayor

and

City

Council

November

16,
2022
Page
347 of 1157

6 of 9
of any and al l publ ic or public util ity property damaged or destroyed by reason of any work done under this Agreement, whether such property is owned by the United States or an y agency thereof, or the State of California, or any agency or political subdivision t hereof, or by City or any publ ic or private utility corporation or by any combination of such owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer.

17. Indemnification.
a. Neither City nor any and all of its officials, em ployees and agents (“Indemnified P arties”) shall not be liable for any injury t o persons or property occasioned by reason of the acts or omi ssions of Subdivider, its agents or employees in the performance of this Agreement. Subdivide r further agrees to protect and hold harmless Indemnified Parties form any and all claims, demands, causes of action, liability or loss of any sort, including, but not limited to, attorney fees and litigation expenses, because of, or aris ing out of, acts or omissions of Subdivider, its agents or employees in the performance of this Agreement, including all claims, demands, causes of action, liability, or loss becaus e of, or arising out of, in whole or in part, the design of construction of the Improvements. This indemnification and agreement to hold harmless shal l extend to injuries to persons and damages or taking of property resulting from the design or construction of said subdi vision, and the public improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage systems, streets and other public improvements.

b. Accepta nce by City of the Improvements shall not constitute an assumption by C ity of any responsibility for any damage or taking covered by this paragraph. City shall not be responsible f or the design or construction of the subdivision or the improvements pursuant to the approved Improvement Plans or map, regardless of any negligent action or inaction taken by C ity in approving the plans or map, unless the particular improvement design was specifically required by City over written objection by Subdivide r submitte d to the City Engineer before approval of the particular improvement design, w hich objection indicate d that the particular improvement design was dangerous or defective and suggest ed an alternative safe and feasible design. Except as may be provided above, City shall not be liable for any negligence, nonfeasance, m isfeasance or malfeasance in approving, r eviewing, checking, or correcting any plans or specifications or in approving, reviewing or inspecting any work or construction. Nothing containe d in this paragraph is intended to or shall be deemed to limit or waiv e any protections or immunities afforded by law to City or any and all of its officials, employees and agents (“Indemnified Parties”), by virtue of city’s approval of the plan or design of the Improvements, including without limitation the protections and immunities afforded by Government Code Section 830.6. After acceptance of t he improvements, Subdivider shall remain obligated to eliminate any defect in design or dangerous condition cau sed by the design or construction defect; however, Subdivider shall no t be responsible for routine maintenance. Provisions of this paragraph shal l remain in full force and effect for ten (10) years following the acceptance by City of the Improvements. It is the intent of this paragraph that Subdivider shall be responsible for all liability fo r desi gn and constructi on of the Improvements installed or work done pursuant to this Agreement and th at city shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or correcting any plans or spec ifications or in approving, reviewing or inspecting any w ork or construction. The Improvement Security shall not be required to cover the provisions of this paragraph.

18. No Mo dification of Conditions . This Agreement shall in no respec t act to mo dify or amend any provision of the Conditions of Approval. In t he event that any requirement or condition of this Agreement is inconsistent with or fails to include one or more provisi ons of the Conditions of Approval, which document(s) is (are) incorporated her ein by reference, the provisions in the Conditions of Approval shall remain in effect and shall control.

19. Severability. In the event that a court of competent jurisdiction d etermines that any provision or provisions of this Agreement are unenforceable, all provisions not so held shall remain in full force and effect.

20. Subdivider No Agent of City . Neither Subdivider nor any of Subdivider’s agents, employees, or contractors are or shall be considered to be agents of City in connecti on with the performance of Subdivider’s obligations under this Agreement.

18. General Provisions.

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 24
Menifee

Mayor

and

City

Council

November

16,
2022
Page
348 of 1157

7 of 9
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, return receipt requ ested, to t he part ies at their respective addresses indicated hereon. Noti ces personally delivered shall be effective upon delivery.

Notices mailed as provided herein and sent pos tage prepaid shall be effective upon the date of delivery or refusal indicated on the return receipt. Either party may change its address for notices hereunder by notice to the other given in the manner provided in this subparagraph.

B. The terms, condit ions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto.

C. Neither party to this Agreement r elies upon any warranty or representation not contained in th is Agreement.

D. This Agreement shall be governed by and interpreted with respect to the law s of t he State of California.

E. In the event of any dis pute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non- prevailing party.

F. Any failure or delay b y either party in asserting any of its rights and r emedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provid ed for hereunder.

G. Time is of the essence in the performance of each and every provision of this Agreement.

H. The Recitals to this Agreement are hereby incorporated into and expressly made a part of the terms of this Agreement.

I. This Agreement constitutes the entire agreement of the parties with respect to the subjec t matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties.

IN WITNESS WHERE OF, the parties hereto have executed this Agreement as of the day and year first written above.

CITY: City of Menifee
29844 Haun Rd.

Menifee, CA 92586
(951) 672-6777

________________________________ ___________________
Armando Villa, City Manager Date

ATTEST:

____________________________________________________
Kay Vinson, Acting City Clerk

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 25
Menifee

Mayor

and

City

Council

November

16,
2022
Page
349 of 1157

8 of 9
Pulte Homes Company, LLC
27401 Los Altos, Suite 400
Mission Viejo, CA 92691

By:___________________________________________ ________________________________ Date
Title: _______________________________________

By: _______________________________________ _______________________________ Date
Title: _______________________________________

Reviewed and Approved:

__________________________________ ____________________________ City Engineer Date

Approved as to Form:

_____________________________________ ____________________________ City Attorney Date

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
Item Page Number: 26
Menifee

Mayor

and

City

Council

November

16,
2022
Page
350 of 1157

9 of 9
Exhibit A
Cost Estimate TRACT MAP NO. 36658

IMPROVEMENTS

Item Title: 10.16
Final

Map,

Subdivision

Improvement

Agreement

and

Bonds

for

Tract

Map

36658-1,

Cimarron

Ridge,

Pulte

Homes
Company, LLC
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Menifee

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CITY OF MENIFEE
SUBJECT: 2022 Development Impact Fee Nexus Study and Fee Update MEETING DATE: November 16, 2022
TO: Mayor and City Council
PREPARED BY: Jizelle Sandoval, Financial Analyst
REVIEWED BY: Margarita Cornejo, Deputy Finance Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt a resolution approving an updated schedule of the Development Impact Fees to replace the existing fee schedule and authorize a new fee schedule with an effective date of July 1, 2023, with a phase-in of fees for commercial/retail and office categories; and

2. Authorize the City Manager to implement an annual Construction Cost Index (“CCI”) adjustment, as of December of the preceding (calendar) year and made effective for July 1 of each fiscal year, allowing for automatic annual adjustments, including increases and decreases, but not less than 0% during the phase-in period (through Fiscal Year 2027/2028), with the first adjustment effective July 1, 2024.

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

Within the State of California DIFs 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 a DIF is to ensure that new development pays capital costs associated with growth. DIF 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.

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In 2021, the Matrix Consulting Group was retained by the City of Menifee to assist in reviewing and updating the existing DIF. Given that the City’s last comprehensive DIF Study was completed in 2017, Matrix Consulting Group was tasked with re-evaluating the nexus for these fees to ensure that they are still appropriate, as such the lists were updated to incorporate any completed projects and any new projects. The outcome 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.

DIF Meetings & Outreach Efforts
The following dedicated meetings and outreach efforts have been incorporated as part of the 2022 DIF Nexus Study and Fee Update:
•July 26, 2022: DIF Nexus Study was presented to the Finance Committee for review. The Finance Committee recommended a workshop for City Council. •August 31, 2022: DIF Nexus Study was presented to City Council in a public workshop setting.
•August/September/October 2022: staff shared the study with the Building Industry Association (BIA) and presented to the Developer Stakeholder Group (DSG) and provided responses to questions received.
•November 2022: Original Public Hearing set for November 2, 2022 was continued to November 16, 2022 to allow additional time for follow discussions with BIA stakeholders to address comments received on November 2nd (discussed below). In response to the formal letter from the BIA staff provided formal response, addressing all questions and concerns received and remaining concerns were addressed as part the response letter and in the final updates incorporated in the final Nexus Study (See November 2022 Update – Police Services section).

The 2022 DIF Nexus Study and Fee Update draft has been posted on the City’s website. Staff also developed a GIS mapping tool to determine areas subject to the Storm Drain Impact fees, as a follow up to questions received from the development community. This GIS tool is posted on the City’s website.

Strategic Plan
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 Study also completes two action tasks that are part of the Strategic 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 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.

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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. •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 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, the recently enacted, 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.

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•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.

Results of Study
Based upon the results of this Study, the project team has calculated updated or new impact fees for Animal Shelter, General Government, Fire, Law Enforcement, Parks and Recreation, Transportation, and Storm Drainage. 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 tables (Table 1 & Table 2) 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: DIF Schedule
Land Use Animal
Shelter
General
Govt. Fire Law Enf. Parks
& Rec
Transportation
Impact Fees
Single Family Unit $ 94 $ 1,176 $ 647 925$ 1,723$ 7,097$ 11,662$ Multi-Family Unit $ 74 $ 920 $ 506 724$ 1,348$ 3,585$ 7,157$ Commercial / Retail $ - $ 0.68 $ 0.85 0.47$ -$ 17.29$ 19.29$ Commercial / Service / Office $ - $ 1.87 $ 2.36 $ 1.32 -$ $ 8.24 13.79$ Industrial / Business Park $ - $ 0.25 $ 0.32 0.17$ -$ 4.66$ 5.40$ Residential Fee Per Dwelling Unit
Nonresidential Fee Per Sq. Ft.

Total Maximum
Fee, Excluding
Storm Drain
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November 2022 Update - Police Services:

Additionally, at the request of the BIA for additional information and opportunity to discuss the methodology used in the 2022 DIF Nexus Study, staff and Matrix Consulting Group met with the BIA. As a follow up to the discussions, staff and Matrix Consulting Group reviewed the original methodology applied for police services. While the original methodology meets the nexus requirement, the project team and City staff determined that since the previous nexus analysis did not consider any police equipment, there was the potential of new development to subsidize existing development. Therefore, to ensure the most appropriate nexus it was determined that the methodology should be altered.

The project team issued a revised final report on November 9, 2022. This revised report incorporates an update to the methodology only for the Police Impact Fees. This methodology resulted in two changes:

1.Proportion of Calls for Service between Residential & Commercial: The August Draft Report utilized CY 2021 (Jan-November) calls for service numbers. The project team obtained full CY 2021 information and also CY 2022 YTD (Jan-Oct) calls for service information. This shifted the percentage from 21% to commercial to 22% to commercial.

2.Proportion to be Borne by New Development: Based upon the revised methodology, the project team took the expected growth in the service population and divided it by the overall projected population. This reduced the proportion to be borne by new development from 41% to 27%.

The attached DIF Nexus Study – August 2022 (Exhibit A) reflects changes accordingly, and within the following pages 4-5, 8, 37-38, 40-41, and 43. Additionally, Impact Fee Report Update provides a summary of the revised proposed methodology for the police services.

August 31, 2022 City Council Workshop and Follow Up Items During the City Council workshop, the Council collectively reviewed the draft Nexus Study as well as options for implementation. Two items requiring follow up based on feedback received from the workshop include: the Animal Shelter fee component and the removal of the Senior Housing/Assisted Living fee category. The Animal Shelter fee is confirmed as is proposed per the Study and reflects the City’s proportionate share of the JPA’s bond debt for the existing Animal Shelter. The City Attorney’s Office has confirmed this is a legal and eligible use of DIF and the Study confirms the nexus. The Senior/Assisted Living fee category in the current DIF was established based on the analysis that these uses create impacts as a proportion of Single- Family Residential density. However, because it is difficult to project specific proportionality and land use, designations do not regulate age-restrictions of residents, the consulting team 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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felt it was best to exclude this fee category from the analysis. For both of these items, should the Council decide to make a policy decision to adjust the final version of the DIF this is an option the Council can further discuss.

In terms of implementation, the Council provided feedback that supported a phased implementation date of July 2023. In addition, there was support for a phased-in approach for Commercial/Retail and Office land uses as an economic development incentive tool. The phase-in approach would include incremental increases as listed in Table 3 with an annual Construction Cost Index (CCI) adjustment beginning July 1, 2024. The annual CCI adjustment will be calculated against the full phased in fees. It is also important to note, that during the proposed phased in period which covers the period through Fiscal Year (FY) 2027/2028, the annual adjustment would be the CCI, but not less than 0%, to allow for the maximum rates fees to be realized, without a negative adjustment unintentionally eroding the phased in increases. *Table 3: Phased-In DIF Schedule
*Beginning July 2024, maximum fees will be subject to an annual CCI adjustment, including increases and decreases, but not less than 0% during the phase in period (through FY 2027/2028).

STRATEGIC PLAN OBJECTIVE
Accessible and Interconnected Community

FISCAL IMPACT
Current Year 1 Year 2 Year 3 Year 4 Year 5
FY 2022-23FY 2023-24FY 2024-25FY 2025-26FY 2026-27FY 2027-28 5% 25% 50% 75% 100%
Commercial / Retail $ 0.28 $ 0.30 $ 0.38 $ 0.48 $ 0.58 0.68$ 0.40$ Commercial / Service / Office $ 0.37 $ 0.45 $ 0.75 $ 1.12 $ 1.50 $ 1.87 1.50$ Commercial / Retail $ 0.46 $ 0.48 $ 0.56 $ 0.66 $ 0.75 $ 0.85 0.39$ Commercial / Service / Office $ 0.61 $ 0.70 $ 1.05 $ 1.49 $ 1.92 $ 2.36 1.75$ Commercial / Retail 0.06$ $ 0.08 $ 0.16 $ 0.27 $ 0.37 0.47$ 0.41$ Commercial / Service / Office $ 0.08 $ 0.14 $ 0.39 $ 0.70 $ 1.01 $ 1.32 1.24$ Commercial / Retail 8.38$ $ 8.83 $ 10.61 $ 12.84 $ 15.06 17.29$ 8.91$ Commercial / Service / Office $ 6.44 $ 6.53 $ 6.89 $ 7.34 $ 7.79 $ 8.24 1.80$ Fire
Law Enforcement
Transportation Impact Fees
General Government
Phased-In DIF Fees (Per Sq. Ft.)
Cumulative % Increase (Column J)
Difference between the Current Fee and New Fee (J)
Current Year 1 Year 2 Year 3 Year 4 Year 5
FY 2022-23FY 2023-24FY 2024-25FY 2025-26FY 2026-27FY 2027-28 5% 25% 50% 75% 100%
A_A Commercial / Retail $ 0.42 $ 2.09 $ 4.18 $ 6.27 $ 8.36 8.36$ Commercial / Retail $ 0.01 $ 0.06 $ 0.11 $ 0.17 $ 0.22 0.22$ Commercial / Service / Office $ 0.01 $ 0.04 $ 0.07 $ 0.11 $ 0.14 0.14$ Commercial / Retail $ 0.20 $ 0.98 $ 1.97 $ 2.95 $ 3.93 3.93$ Commercial / Service / Office $ 0.13 $ 0.65 $ 1.31 $ 1.96 $ 2.61 2.61$ Commercial / Retail $ 0.03 $ 0.14 $ 0.28 $ 0.42 $ 0.56 0.56$ Commercial / Service / Office $ 0.02 $ 0.09 $ 0.19 $ 0.28 $ 0.37 0.37$ Commercial / Retail $ 0.01 $ 0.03 $ 0.06 $ 0.08 0.11$ 0.11$ Commercial / Service / Office $ 0.00 $ 0.02 $ 0.04 $ 0.06 0.08$ 0.08$ Commercial / Retail $ 0.02 $ 0.10 $ 0.20 $ 0.30 $ 0.40 0.40$ Commercial / Service / Office $ 0.01 $ 0.07 $ 0.14 $ 0.20 0.27$ 0.27$ Difference between the Current Fee and New Fee (J)Cumulative % Increase (Column J) F_E
Storm Drain Impact Fee Phased-In DIF Fees
A_B
A_C
B_C
F_A
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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 $311.09 million. The remaining $466.7 million gap would need to be recovered through other funding means. It is important to note, should the City Council choose to include any of the alternative implementation options, the gap/additional funding sources amount will increase.

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 17,414,501 47,083,651
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 $311,099,339 $466,784,005
**The Animal Shelter is an existing facility, with remaining bond payments owed by the City. The existing DIF is used to recover the bond payments. The updated DIF will do the same, at a lower cost per dwelling unit.

The proposed fees will also adopt the CCI adjustment, as of December of the preceding (calendar) year and made effective July 1 of each fiscal year, allowing for Council’s approval of annual adjustments, including increases and decreases, but not less than 0% during the phase in period through FY 2027/2028, with the first adjustment effective July 1, 2024.

ATTACHMENTS

1. Resolution - DIF

2. Exhibit A - DIF Nexus Study

3. Impact Fee Report Memo – Police Department Revision

4. BIA Letter, November 2, 2022

5. Response to BIA Letter, November 2, 2022
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2 RESOLUTION NO. 22-_________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE,

CALIFORNIA, ADOPTING THE DEVELOPMENT IMPACT FEE

CALCULATION AND NEXUS STUDY REPORT FOR THE CITY OF

MENIFEE, AND ESTABLISHING NEW AND REVISED

DEVELOPMENT IMPACT FEES FOR DEVELOPMENT WITHIN THE
CITY
WHEREAS, Government Code Sections 66000 et seq. (also known as the “Mitigation Fee Act”) authorizes the legislative body of a city to impose impact fees on development projects for the purpose of defraying all or a portion of the cost of public facilities related to the development project; and WHEREAS, several policies within the City’s General Plan require that new development mitigate its share of the impacts to the natural and built environments and be fiscally neutral so as to not result in a net economic loss for the City; and
WHEREAS, such General Plan policies include the maintenance of existing quality of life, maintenance of existing service levels and funding of new facilities, the requirement of new development to mitigate a fair share of its impacts, and calling for the use of impact fees to fund needed improvements to serve new development, among other policies; and
WHEREAS, in accordance with those policies, the City adopted an ordinance of the Municipal Code, in accordance with the provisions of Government Code sections 66000 et seq. (the “Mitigation Fee Act”), establishing Development Impact Fees (“DIF”); and WHEREAS, the City Council finds that Menifee is a rapidly growing city. The City’s populations has potential growth from a current population of about 103,000 to approximately 147,000 at build out.

This increase in population is reasonably expected to create a substantial increase in demand placed upon public facilities; and
WHEREAS, the City’s existing public facilities will soon become inadequate to handle the projected population growth at existing levels of service. In order to serve the projected population growth, the City Council finds that public facilities must be expanded; and WHEREAS, Matrix Consulting Group Inc., was selected to perform a Development Impact Fee Nexus Study (“Nexus Study”) needed to support future development in the City through 2045 that provides an evaluation of existing development impact fees, recommends an increase and change in methodology in certain development impact fees, the creation of new impact fees and establishes the nexus between the imposition of such impact fees and the estimated reasonable cost of providing the service for which the fees are charged; and
WHEREAS, the Nexus Study makes all findings required by the Mitigation Fee Act, and substantiates the need for a modification to existing fees to change certain methodology as well as creation of new impact fees; and
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WHEREAS, it is the City’s intent that the costs representing future development’s share of public facilities and improvements and to develop a new DIF schedule. The relevant infrastructure and improvements for which fees will be collected are divided into the fee categories listed below:
•Animal Shelter
•General Government
•Fire
•Law Enforcement
•Parks
•Transportation
•Storm Drainage
WHEREAS, the City Council had determined that these fees should be established to provide for the City’s future provisions of public facilities and essential services, at least partially allocable to new development within the City; and
WHEREAS, the relationship between the use of the fees and the type of development is that the fees will be used to acquire and construct new public facilities to meet the demands of new development; and
WHEREAS, the relationship between the need for the public facilities and the DIF is that each new development project will generate demands on public facilities and essential services and the associated new facilities are needed to provide those services; and WHEREAS, the relationship between the amount of the fee and the cost of the portion of facilities attributed to new development is that the amount of fee collected is directly attributable to the projected number of residents, employees, or individuals to be served by any new development project; and WHEREAS, the fees are derived from, are based upon, and do not exceed the costs of the public facilities necessitated by new development for which the fees are imposed; and WHEREAS, the fees shall be imposed as a condition of development at building permit issuance and shall be collected by the City consistent with the City’s Municipal Code, unless payment at a different time is mandated or authorized by Government Code section 66007; and WHEREAS, notice of a public hearing before the City Council of the City of Menifee concerning a proposed increase of the Development Impact Fees was given, and on November 2, 2022 a duly noticed public hearing regarding the new Development Impact Fee schedule was held by the City Council of the City of Menifee; and
WHEREAS, the public hearing was formally continued to a date certain of November 16, 2022, to allow for further stakeholder input; and
WHEREAS, the City Council has considered the information and public testimony presented in the public hearing and in the proposed documents and staff report, all of which are included in the public record and incorporated herein by reference.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Menifee, California as follows:

Section 1. The foregoing recitals are true and correct, and incorporated herein by this reference.

Section 2. Findings pursuant to Government Code section 66001. The City Council finds and determines that the Nexus Study (attached hereto as Exhibit A and incorporated herein by reference) complies with California Government Code section 66001, and as to each of the proposed fees to be Item Title: 11.1
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imposed on new development. The City Council also makes the following findings consistent with the requirements of the Mitigation Fee Act:

A.Purpose of the Fee. The primary policy objective of a public facilities fee program is to ensure that new development pays the capital costs 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. The proposed fees will enable the City to expand its inventory of public facilities as new development leads to increases in service demands. This report supports the General Plan. Menifee’s forecast to significant growth through this study’s planning horizon of 2045. This growth will create an increase in demand for public services and the facilities required to deliver them. The fees advance a legitimate City interest by enabling the City to provide public facilities to new development. By collecting the fees, the City can provide sufficient facilities and services truly consistent with the anticipated population.

B.Use of the Fee. The proceeds from the fees will be used to fund expanded facilities to serve new development. Facilities funded by these fees are designated to be located within the City’s sphere of influence. Fees addressed in this report have been identified by the City to be restricted to funding the following facility categories: police facilities, fire facilities, circulation facilities, storm drainage facilities, animal shelter facilities, general government facilities, and parks. New developments result in increased demands on the City’s facilities. Any fees collected are not used to overcome past deficiencies, but rather are used for additional facilities and services necessary to meet projected future need from new development.

C.Relationship Between the Fee’s Use and the Type of Development Project on Which the Fee is Imposed. The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the additional residents and workers associated with new development. Under the Mitigation Fee Act, fees are not intended to fund planned facilities needed to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development classifications that will pay the fees.

D.Relationship Between the Need for the Facility and the Type of Project. Facility need is based on a facility standard that represents the demand generated by new development for those facilities. For each facility category, demand is measured by a single facility standard that can be applied across land use types to ensure a reasonable relationship to the type of development. For most facility categories service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. The standards used to identify growth needs are also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population.

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E.Relationship Between the Amount of the Fee and the Cost of the Facility or Portion of the Facility Attributed to the Project. All fees are calculated based on dwelling units or building square feet. Occupant density assumptions ensure a reasonable relationship between the size of a development project, the increase in service population associated with the project, and the amount of the fee. The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated new development growth the project will accommodate. Fees for a specific project are based on the project’s size. Larger new development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project.

Section 3.The Council further determines that the Nexus Study complies with AB 602 and required findings to use residential densities are included on pages 15 and 16 of the Nexus Study.

Section 4. The maximum justifiable fees required per Chapter 8.02 of the Menifee Municipal Code establishing DIF to be paid as a condition of development, for each category shall be as follows:

Development Impact Fees Schedule
Land Use Animal
Shelter
General
Govt. Fire Law Enf. Parks
& Rec
Transportation
Impact Fees
Single Family Unit $ 94 $ 1,176 $ 647 925$ 1,723$ 7,097$ 11,662$ Multi-Family Unit $ 74 $ 920 $ 506 724$ 1,348$ 3,585$ 7,157$ Commercial / Retail $ - $ 0.68 $ 0.85 0.47$ -$ 17.29$ 19.29$ Commercial / Service / Office $ - $ 1.87 $ 2.36 $ 1.32 -$ $ 8.24 13.79$ Industrial / Business Park $ - $ 0.25 $ 0.32 0.17$ -$ 4.66$ 5.40$ 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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Phased-In Approach
* Maximum Fees beginning July 2024 will be subject to an annual CCI adjustment, including increases and decreases, but not less than 0% during the phase in period through FY 2027/28 * Section 5. The DIF shall be subject to an automatic annual adjustment, including increases and decreases, but not less than 0% during the phase in period through FY 2027/2028, on July 1 of each year with the first adjustment on July 1, 2024, based on Construction Cost Index (CCI), as of December of the preceding year. The City Manager is hereby authorized to implement the CCI adjustment each year without further action from City Council.

Section 6.CEQA. Pursuant to Section 15378(b)(4) of Title 14 of the California Code of Regulations, the Resolution is not considered a “project” under the requirements of the California Environmental Quality Act (CEQA) because it involves the “creation of government funding mechanism or other government fiscal activities which do not involve any commitment to any specific project which may result n a potentially significant physical impact on the environment.” In addition, the adoption of the Resolution is exempt from CEQA because there is no possibility that the proposed resolution, as a textural change to the Municipal Code, may have a significant impact on the physical environment (CEQA Guidelines 15061) and per Section 15061(b)(3), because it can be seen with certainty to have no possibility of a significant effect upon the environment.

Section 7.All previous City Resolution inconsistent with the Resolution are repealed to the extent inconsistent herewith.

Section 8.The actions taken in this Resolution, which adopt an increase in fees or charges upon development projects, and which apply to the filing, accepting, enacted in accordance with the notice and public hearing procedures specified in Government Code sections 64986 and 66016, and shall, Current Year 1 Year 2 Year 3 Year 4 Year 5
FY 2022-23FY 2023-24FY 2024-25FY 2025-26FY 2026-27FY 2027-28 5% 25% 50% 75% 100%
Commercial / Retail $ 0.28 $ 0.30 $ 0.38 $ 0.48 $ 0.58 0.68$ 0.40$ Commercial / Service / Office $ 0.37 $ 0.45 $ 0.75 $ 1.12 $ 1.50 $ 1.87 1.50$ Commercial / Retail $ 0.46 $ 0.48 $ 0.56 $ 0.66 $ 0.75 $ 0.85 0.39$ Commercial / Service / Office $ 0.61 $ 0.70 $ 1.05 $ 1.49 $ 1.92 $ 2.36 1.75$ Commercial / Retail 0.06$ $ 0.08 $ 0.16 $ 0.27 $ 0.37 0.47$ 0.41$ Commercial / Service / Office $ 0.08 $ 0.14 $ 0.39 $ 0.70 $ 1.01 $ 1.32 1.24$ Commercial / Retail 8.38$ $ 8.83 $ 10.61 $ 12.84 $ 15.06 17.29$ 8.91$ Commercial / Service / Office $ 6.44 $ 6.53 $ 6.89 $ 7.34 $ 7.79 $ 8.24 1.80$ Fire
Law Enforcement
Transportation Impact Fees
General Government
Phased-In DIF Fees (Per Sq. Ft.)
Cumulative % Increase (Column J)
Difference between the Current Fee and New Fee (J)
Current Year 1 Year 2 Year 3 Year 4 Year 5
FY 2022-23FY 2023-24FY 2024-25FY 2025-26FY 2026-27FY 2027-28 5% 25% 50% 75% 100%
A_A Commercial / Retail $ 0.42 $ 2.09 $ 4.18 $ 6.27 $ 8.36 8.36$ Commercial / Retail $ 0.01 $ 0.06 $ 0.11 $ 0.17 $ 0.22 0.22$ Commercial / Service / Office $ 0.01 $ 0.04 $ 0.07 $ 0.11 $ 0.14 0.14$ Commercial / Retail $ 0.20 $ 0.98 $ 1.97 $ 2.95 $ 3.93 3.93$ Commercial / Service / Office $ 0.13 $ 0.65 $ 1.31 $ 1.96 $ 2.61 2.61$ Commercial / Retail $ 0.03 $ 0.14 $ 0.28 $ 0.42 $ 0.56 0.56$ Commercial / Service / Office $ 0.02 $ 0.09 $ 0.19 $ 0.28 $ 0.37 0.37$ Commercial / Retail $ 0.01 $ 0.03 $ 0.06 $ 0.08 0.11$ 0.11$ Commercial / Service / Office $ 0.00 $ 0.02 $ 0.04 $ 0.06 0.08$ 0.08$ Commercial / Retail $ 0.02 $ 0.10 $ 0.20 $ 0.30 $ 0.40 0.40$ Commercial / Service / Office $ 0.01 $ 0.07 $ 0.14 $ 0.20 0.27$ 0.27$ F_E Storm Drain Impact Fee Phased-In DIF Fees
A_B
A_C
B_C
F_A
Difference between the Current Fee and New Fee (J)Cumulative % Increase (Column J) Item Title: 11.1
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exceeding the requirements of California Government Code Section 66017(a), become effective immediately but not implemented until July 1, 2023.

PASSED, APPROVED AND ADOPTED this 16th day of November 2022.

ATTEST: APPROVED:

Kay Vinson, Acting City Clerk Bill Zimmerman, Mayor
APPROVED AS TO FORM:

Jeffrey T. Melching, City Attorney
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Development Impact Fee Study CITY OF MENIFEE, CALIFORNIA FINAL REPORT November 9, 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: 11.1
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DRAFT Development Impact Fee Study MENIFEE, CA

Matrix Consulting Group 1

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: 11.1
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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: 11.1
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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 $925 ($675) 27% Multi-Family $183 $724 ($541) 25% Item Title: 11.1
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Category Current Fee Full Cost Fee Surplus / (Deficit) Cost Recovery % Commercial / Non-Residential (per square foot) Commercial / Retail $0.06 $0.47 ($0.41) 13% Office $0.08 $1.32 ($1.24) 6% Industrial $0.03 $0.17 ($0.14) 18% 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 $17,414,501 $47,083,651 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 $311,099,339 $466,784,005 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 $311 million. The remaining $466.8 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: 11.1
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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: 11.1
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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: 11.1
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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: 11.1
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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: 11.1
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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: 11.1
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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: 11.1
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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.

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. It is important to note that in the previous nexus analysis, the City had contracted for law enforcement services, as such infrastructure costs did not include equipment. Therefore, the current nexus analysis is proposing to ensure that there is no potential for new development to pay towards existing deficiencies, the proportionate growth be based upon the estimated new service population as a percentage of the overall anticipated population growth. 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 projected increase, the total projected population, the weighting factor, and the resulting weighted population increase: Table 49: Future Weighted Service Population Increase Category Existing Population Projected Increase Projected Total Population Weight Factor Weighted Population Increase Residential 103,617 44,355 147,972 1.00 44,355 Commercial 14,200 15,000 29,200 0.2213 3,300 TOTAL 117,817 59,375 177,172 47,655 As the table indicates, the projected increase in the service population is approximately 47,655. The 47,655 as a component of the overall projected total 2045 population 13 To calculate the employee weight factor, the project team utilized an average of CY2021 and CY2022 YTD (Jan-Oct) proportion of police calls for service that are commercial relative to residential calls for service.

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(177,172) is approximately 27%. Therefore, future development should bear approximately 27% 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 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 Item Title: 11.1
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Item Quantity Unit Cost Total Cost Lifecycle Avg Annual Cost 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 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.

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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, 27% 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 53: Projected Cost Calculation Between Existing and Future Population Category Infrastructure Costs Proportion Total Cost to Be Borne Current Population $64,498,152 73% $47,083,651 Future Population $64,498,152 27% $17,414,501 Of the $64.5 million, $17.4 million should be borne by the future population. This $17.4 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 54: Projected Cost for New Development – Residential and Commercial Category Infrastructure Costs Proportion of Calls for Service Total Cost to Be Borne Residential $17,414,501 78% $13,583,311 Commercial $17,414,501 22% $3,831,190 Approximately $13.6 million of the $17.4 million is residential and the remaining $3.8 million is commercial-related. The $13.6 and $3.8 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 $13,583,311 44,355 $306 Commercial $3,831,190 15,000 $255 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 $306 2.94 $900 per dwelling unit Multi-Family $306 2.30 $704 per dwelling unit Item Title: 11.1
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Category Cost Per Capita Density Impact Fee Non-Residential Commercial / Retail $255 550 $0.46 per sq. ft. Office $255 200 $1.28 per sq. ft. Industrial $255 1,500 $0.17 per sq. ft. As the table above indicates, the cost per dwelling unit varies from a low of $704 for multi-family to a high of $900 for single-family homes. The fees for commercial and non-residential vary from a low of $0.17 per square foot for industrial to a high of $1.28 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 $900 $25 $925 per dwelling unit Multi-Family $704 $20 $724 per dwelling unit Commercial / Non-Residential Commercial / Retail $0.46 $0.01 $0.47 per sq. ft. Office $1.28 $0.04 $1.32 per sq. ft. Industrial $0.17 $0.005 $0.1714 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 $925 ($675) Multi-Family $183 $724 ($541) Commercial / Non-Residential (per square foot) Commercial / Retail $0.06 $0.47 ($0.41) Office $0.08 $1.32 ($1.24) Industrial $0.03 $0.17 ($0.14) 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. 14 This still rounds to $0.17 since the admin fee is less than $0.01.

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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 Police Impact fee meets the Mitigation Fee Act criteria. 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.

As the table demonstrates, the City is able to meet all five of the criteria necessary to impose a Police 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 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: 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 $925 $724 $0.47 $1.32 $0.17 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: 11.1
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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 $48,00015 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: 15 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: 11.1
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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 Fee16 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.

16 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.

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: 11.1
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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)17 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 17 This column shows total dwelling units (Single and Multi-Family) Item Title: 11.1
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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: 11.1
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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: 11.1
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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 = $16.8218). 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. 18 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 Acre19 DU or KSF per acre20 Impervious Factor per DU or KSF21 EDU Demand Factor22 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 19 The same coefficient from the previous study was utilized as it was determined to be appropriate per the most recent Master Drainage Plan. 20 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. 21 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. 22 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: 11.1
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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: 11.1
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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%23 $466,000 A_C $8,116,000 10% $6,898,600 B_A $13,300,000 100%24 $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 23 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. 24 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: 11.1
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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 = $8.1325). 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. 25 It equals $8.134 but it was rounded to two decimals to $8.13.

Item Title: 11.1
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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 Cost26 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. 26 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

Item Title: 11.1
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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: 11.1
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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: 11.1
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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 included27: 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 27 The total project cost is inclusive of right-of-way costs, construction costs, design, project management, and construction management.

Item Title: 11.1
2022 Development Impact Fee Nexus Study and Fee Update
Item Page Number: 84
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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: 11.1
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DRAFT Development Impact Fee Study MENIFEE, CA

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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: 11.1
2022 Development Impact Fee Nexus Study and Fee Update
Item Page Number: 86
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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: 11.1
2022 Development Impact Fee Nexus Study and Fee Update
Item Page Number: 87
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Matrix Consulting Group Page 1
1650 S Amphlett Blvd., Suite 213 San Mateo, CA 94402 650.858.0507 November 9, 2022 SUBJECT: REVISION TO DRAFT IMPACT FEE REPORT DATED AUGUST 2022 The Matrix Consulting Group issued a draft impact fee report in August 2022 for the Development Impact Fee Study. This report was published and publicly distributed to City Council and the Development Community. The project team then worked with the City of Menifee staff to ensure that any questions from the draft report were addressed. In October and November 2022, the project team and City staff met with the BIA and development community to review and address these questions. In the November 2022 meeting it was identified that the current methodology for Police services provided a perception of over-burdening new development. While the proposed methodology meets the nexus requirement, the project team and City staff reviewed the current and previous assumptions. Based upon that review it was determined that since the previous nexus analysis did not take into account any police equipment, there was the potential of new development to subsidize existing development. Therefore, to ensure the most defensible nexus it was determined that the methodology should be altered. The project team issued a revised final report on November 9, 2022. This revised report incorporates an update to the methodology only for the Police Impact Fees. This methodology resulted in two changes: 1. Proportion of Calls for Service between Residents & Commercial: The August Draft Report utilized CY 2021 (Jan-November) calls for service numbers. The project team obtained full CY 2021 information and also CY 2022 YTD (Jan-Oct) calls for service information. This shifted the percentage from 21% to commercial to 22% to commercial. 2. Proportion to be Borne by New Development: Based upon the revised methodology, the project team took the expected growth in the service population and divided it by the overall projected population. This reduced the proportion to be borne by new development from 41% to 27%. matrixconsulting group
Item Title: 11.1
2022 Development Impact Fee Nexus Study and Fee Update
Item Page Number: 88
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Explanation of Revised Final Impact Fee Report City of Menifee, CA Matrix Consulting Group Page 2
These two changes resulted in changing the impact fees for the Police Department for residential and non-residential categories. The following table shows the August 2022 fee and the November 2022 fee: Table 1: Police Impact Fee Category August 2022 Fee November 2022 Fee Residential (per dwelling unit) Single-Family $1,390 $925 Multi-Family $1,088 $724 Commercial / Non-Residential (per square foot) Commercial / Retail $0.68 $0.47 Office $1.86 $1.32 Industrial $0.25 $0.17 As the table indicates, the November 2022 fee shows a significant reduction. This reduction is due to the change of new development being responsible from 41% to 27%. To ensure that there was no potential for future confusion, the project team has updated the City’s final nexus document to more cohesively capture this change. This memo was developed as a supplement to help explain the need for the revised Final Report for the Impact Fee Nexus Analysis.

Item Title: 11.1
2022 Development Impact Fee Nexus Study and Fee Update
Item Page Number: 89
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26840 Aliso Viejo Pkwy, Suite 110, Aliso Viejo, CA, 92656 949.388.9269 DPFG.com

November 2, 2022

Honorable Mayor and City Council
City of Menifee
29844 Haun Rd
Menifee, CA 92586

RE: City of Menifee DIF Study Review and Continuance Request

Dear Honorable City Mayor and City Council Members:

DPFG is the submitting this letter o n the behalf of the Riverside County Chapter of the B uilding Industry Association (BIA) regarding the proposed Development Impact Fee update. DPFG has been representing the BIA in reviewing the proposed Development Impact Fees and meeting with the city and their consultants. We have greatly appreciated the communication and collaboration between the BIA and the City of Menifee, and look forward to continuing this working relationship, but we still have concerns about some of the methodologies used in calculating these fees and believe this needs more time to be discussed and achieve an outcome agreeable to all involved.

On behalf of the Riverside County Chapter of the BIA, we respectfully request that you allow for a continuance regarding the Development Impact Fee update that is on the City Council agenda tonight. Attached to this letter are our comments and questions reflecting our remaining concerns regarding the methodology for this fee update. Please note the items in blue text in the attached are comments from the recent correspondence we received back from your consulting team as part of the on-going discussions.

Sincerely,

Peter Piller
Managing Principal

cc: Cheryl Kitzerow, Community Development Director, City of Menifee Lou Monville, Riverside County Chapter of the BIA

Item Title: 11.1
2022 Development Impact Fee Nexus Study and Fee Update
Item Page Number: 90
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Menifee City CouncilNovember 16, 2022

Menifee City Council
November 16, 2022