CITY OF MENIFEE
SUBJECT: Menifee Sphere of Influence Agreement Options
MEETING DATE: April 2, 2025
TO: Mayor and City Council
PREPARED BY: Doug Darnell, Principal Planner
REVIEWED BY: Orlando Hernandez, Interim Community Development Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
Review and consider prior direction to move forward with a City Sphere of Influence (SOI) amendment to:
1. Approve and authorize the City Manager to execute the Professional Services Agreement with MNS Consulting for Phase One - Fiscal Analysis of a potential SOI amendment area east of the City’s boundary, for a total not-to-exceed amount of $85,750; or
2. Approve and authorize the City Manager to execute the Professional Services Agreement with MNS Consulting for an amendment to the City’s SOI to add approximately 1,929 acres of unincorporated area east of the City’s boundary within the City’s SOI, including preparation of a General Plan Amendment, SOI Amendment, Annexation, and appropriate environmental analysis in compliance with the California Environmental Quality Act (CEQA) for a total not- to-exceed amount of $550,225 with an Environmental Impact Report (EIR), or $369,705 with an EIR Addendum depending on which environmental document would be necessary.
DISCUSSION
Background
In the last two years, the City Council has expressed an interest in amending the City’s current SOI boundary to add to the City’s SOI, approximately 1,929 acres that are currently within the County of Riverside’s Sun City/Menifee Valley Area Plan. The 1,929-acre area extends from the City’s easterly boundary at Briggs Road, east to Leon Road, and from Old Newport Road south to Scott Road. This area consists of approximately 75 large parcels totaling approximately 1,500 acres (excluding recorded County tract maps at the southwest corner, new homes west of Liberty High School, an approved tract south of Liberty High School, and Liberty High School, which comprises the remainder of the 1,929 acres).
City of Menifee Staff Report
PSA Options for SOI
April 2, 2025
2 5
6 0
On October 19, 2022, staff provided the City Council with an update on the Local Agency Formation Commission’s (LAFCO) update to its Municipal Services Review (MSR) and SOI recommendations for all jurisdictions in Riverside County. LAFCO’s recommendations acknowledged the City’s interest in amending its SOI as well as Riverside County’s pending Winchester Community Plan/County planning for the unincorporated area east of Menifee.
LAFCO emphasized that the City should work closely with Riverside County toward reaching a mutual agreement on an SOI amendment in the future. LAFCO specifically recommended City outreach, discussions and coordination with the County, Valley Wide Recreation and Park District and the Winchester/Homeland Municipal Advisory Council (MAC). With respect to the proposed Winchester Community Plan boundaries and existing Winchester community, LAFCO referenced LAFCO Policy 2.1.5 for “LAFCO to support agency boundaries that include rather than split existing identifiable communities, commercial districts, or other areas having social or economic homogeneity which are within the applicable SOI.” The Final MSR & SOI Report was approved by the LAFCO Board on July 28, 2022.
At the March 20, 2024 City Council meeting, the Council discussed options for pursuing a SOI amendment and, by a vote of 3 to 2, directed staff to prepare a Request for Proposals (RFP) for an amendment to the City’s current SOI boundary and potential annexation of the approximately 1,929 acres that are currently within the County of Riverside’s Sun City/Menifee Valley Area Plan.
The City released an RFP to the public on June 26, 2024; however, no proposals were received.
A second RFP was released on September 27, 2024, and three proposals were submitted.
Proposal Selection Process
An evaluation committee of key City staff members (two staff from the Community Development Department and one from the Community Services Department), familiarized and experienced in the requirements of the RFP, evaluated the submittals based on the qualifications and experience of the firms and their project team, project approach, proposal quality, and cost. The average scores of the evaluation completed by the review committee are summarized in Table 1 below.
TABLE 1- PROPOSAL EVALUATION RESULTS
Consulting Firm Proposal Score
100 possible points
MNS Consulting 85.67
Rincon 87
Meridian Consultants 78.33
After a thorough review of the proposals received, the top two firms, MNS Consulting and Rincon, were selected to move forward in the evaluation process. Both firms demonstrated a clear understanding of the project and possess the experience and qualifications necessary to analyze and prepare a General Plan Amendment, SOI Amendment, and Annexation including completion of the associated fiscal impact analysis and environmental compliance requirements. The Purchasing Division sent both firms a Best and Final Offer (BAFO) request. The firms were asked to propose their most competitive cost proposal to meet the Community Development Department’s budgetary requirements for the project. Upon reviewing the submitted BAFO’s, the entire project cost proposed by MNS Consulting was $550,225, which was substantially lower than the project cost proposed by Rincon of $705,205.
City of Menifee Staff Report
PSA Options for SOI
April 2, 2025
2 5
6 0
Based upon a combination of MNS Consulting’s competitive cost, proposal evaluation score, and interview held on January 14, 2025, the selection committee determined MNS Consulting to be the preferred firm for the project.
Should the City Council elect to move forward with a SOI amendment there are two options available for consideration including:
1.SOI Project Phase One - Fiscal Analysis. Approve and authorize the City Manager to execute the Professional Services Agreement with MNS Consulting for Phase One - Fiscal Analysis of a potential Sphere of Influence (SOI) amendment area east of the City’s boundary, for a total not-to-exceed amount of $85,750.
The Fiscal Impact Analysis would include the following steps:
a. Data Collection
b. Service Cost Estimation
c. Revenue Projections
d. Cost-Benefit Analysis
e. Scenario Analysis
f. Identification of Funding Gaps
Upon completion of the Fiscal Impact Analysis, staff would return to Council to present the findings of the analysis prior to moving forward with any additional project phases. The Fiscal Impact Analysis would be based on the land uses as designated by the County (generally single- family, rural residential to medium density residential, and agriculture).
2.Full SOI Project - SOI Amendment (includes Phase 1 Fiscal Analysis), General Plan Amendment, and EIR/Addendum preparation. Authorize the City Manager to execute the Professional Services Agreement with MNS Consulting for an amendment to the City’s SOI to add approximately 1,929 acres of unincorporated area east of the City’s boundary within the City’s SOI, including preparation of a General Plan Amendment, SOI Amendment, Annexation, and appropriate environmental analysis in compliance with CEQA, for a total not- to-exceed amount of $550,225 with an Environmental Impact Report (EIR), or $369,705 with an EIR Addendum depending on which environmental document would be necessary.
Additional Considerations and LAFCO process/timeline. The attached flowchart outlines the application process for LAFCO’s consideration of a SOI amendment and/or annexation. The City will be required to complete the SOI fiscal impact analysis, General Plan Amendment, and EIR/Addendum as outlined in Option 2 prior to submitting an application to LAFCO. In addition to the cost of the PSA with MSN Consulting, this process presents a significant City staff work effort including multiple departments over the course of a 12-to-18-month period. This will require workload reprioritization and may result in delays in other project/program areas. It is also important to note that there is no guarantee that the request for a SOI adjustment or future annexation will be approved by LAFCO following the completion of this process.
City of Menifee Staff Report
PSA Options for SOI
April 2, 2025
2 5
6 0
STRATEGIC PLAN OBJECTIVE
Thriving Economy
FISCAL IMPACT
The fiscal impact of the proposed contract with MNS Consulting would be determined by the approval actions of the City Council and are as follows:
If Recommended Action 1a is approved – The fiscal impact of the proposed Professional Services Agreement with MNS Consulting is $85,750. Funding for the proposed agreement is available within the approved operating budget for FY 2024/2025, under the General Plan account for the Planning Division within the General Fund (1100-CDD-PLNG-652650).
If Recommended Action 1b is approved - The fiscal impact of the proposed Professional Services Agreement with MNS Consulting is $550,225 for the project with preparation of an EIR or $369,705 for the project with preparation of an Addendum. Funding for the proposed agreement is available within the approved operating budget for FY 2024/2025, General Plan account for the Planning Division within the General Fund (1100-CDD-PLNG-652650).
ATTACHMENTS
1. Professional Services Contract – MNS – Fiscal Impact only
2. Professional Services Contract – MNS – EIR, General Plan Amendment & SOI Amendment
3. LAFCO Process Flowchart
4. October 19, 2022 Staff Report
5. March 20, 2024 Staff Report