CITY OF MENIFEE
SUBJECT: First Reading and Introduction of an Ordinance Amending Ordinance No. 2025-406 to Modify Certain Definitions and to Establish Construction Cost Index Adjustments to the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program and Resolution Amending the Applicable TUMF
MEETING DATE: April 1, 2026
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Introduce an ordinance amending Ordinance No. 2025-406 to modify certain definitions and to establish Construction Cost Index adjustments to the Western Riverside County Transportation Uniform Mitigation Fee (TUMF); and
2. Adopt a resolution implementing the initial Construction Cost Index adjustment for TUMF applicable to all developments in the City of Menifee.
DISCUSSION
The City of Menifee (City) is a Member Jurisdiction of the Western Riverside Council of Governments (WRCOG), a joint powers agency comprised of the County of Riverside and 18 cities located in Western Riverside County. Acting in concert, in 2002 - 2003 the WRCOG Member Jurisdictions developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials due to new development in Western Riverside County could be supported, in part, by a Transportation Uniform Mitigation Fee (TUMF) charged to future residential, commercial and industrial development. Member Jurisdictions of WRCOG participated in the preparation of a certain “Western Riverside County Transportation Uniform Fee Nexus Study” (2002 Nexus Study) later adopted by the WRCOG Executive Committee. Based on the 2002 Nexus Study, and following the City’s incorporation in 2008, the City adopted Ordinance No. 2009-40 authorizing the City’s participation in the TUMF Program.
Since the inception of the program, and the City’s participation in it as a participating jurisdiction, a number of updates have been made to the TUMF program to reflect changing regional
City of Menifee Staff Report
TUMF Ordinance Amendment 2026 CCI Adjustment
April 1, 2026
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transportation needs, address construction industry cost changes, and maintain compliance with new and existing laws. In 2024, and pursuant to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.), WRCOG prepared the most recent nexus study (“2024 Nexus Study”) to update the TUMF.
In September 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and recommended TUMF Participating Jurisdictions update their fees by amending their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction. On February 19, 2025, the City Council approved Ordinance No. 2025-406 (TUMF Ordinance) which adopted the 2024 Nexus Study and its findings.
Section 4.C. of the TUMF Ordinance authorizes periodic review and adjustment of the fee schedule to reflect changes in actual and estimated costs of the regional transportation system it supports. The TUMF Administrative Plan, which sets the administrative procedures for the program, specifically requires that Construction Cost Index (CCI) adjustments to be brought to the WRCOG Executive Committee on an annual basis. Timely CCI adjustments are a key to ensuring that the TUMF being collected keeps pace with the rising cost of constructing transportation infrastructure.
The proposed ordinance amends the TUMF Ordinance to establish an automatic CCI adjustment to be applied to the TUMF Fee Schedule annually based on specific inflationary indices and sets a cap of annual inflationary CCI adjustments at five percent (5%). It also provides minor updates to clarify the program definitions previously established for multi-family and single-family residential units. The actual fee adjustments to the TUMF schedule would be established through the proposed resolution.
The proposed resolution would adjust the Fee Schedule for TUMF by implementing a 2.6% CCI adjustment for 2026 effective July 1, 2026, as follows:
1. $12,705 per single family residential unit 1,800 square feet or less
2. $14,292 per single family residential unit between 1,801 and 2,300 square feet
3. $15,881 per single family residential unit between 2,301 and 2,700 square feet
4. $19,851 per single family residential unit greater than 2,700 square feet
5. $8,021 per multi-family residential unit
6. $2.39 per square foot of an industrial project
7. $7.92 per square foot of a retail commercial project
8. $5.02 per square foot of a service commercial project
9. $2.51 per square foot of a service Class A and B Office The proposed resolution would only go into effect if the proposed ordinance were to be adopted.
If approved, the proposed ordinance and resolution would result in the implementation of the adjusted Fee Schedule for TUMF for the City of Menifee, becoming effective 60 calendar days following the ordinance adoption (Government Code §§ 66000). In the case of the annual CCI adjustment, the initial automatic CCI adjustment would be effective July 1, 2026, and occur annually each July 1st of future years.
Participation in the TUMF program has been a critical tool for the City in funding major transportation projects in the Five-Year Capital Improvement Program (CIP). During the last five years, TUMF funding has been allocated to construct major transportation CIP projects including the Holland Road/I-215 Overcrossing and Scott Road/I-215 Interchange.
City of Menifee Staff Report
TUMF Ordinance Amendment 2026 CCI Adjustment
April 1, 2026
3 1
7 7
Future TUMF supported projects in the City include:
Scott Road Widening Project (Sunset Avenue to I-215)
I- 215 and McCall Blvd. Interchange widening
I-215 and Garbani Interchange
Menifee Road widening from Scott Road to Garbani Road
Holland Road widening from Haun Road to Bradley Road
Each of the constructed and future projects mentioned above provides a local and regional benefit to the City and surrounding communities by providing additional travel lanes and multi-modal connectivity options to support growth in the region.
STRATEGIC PLAN OBJECTIVE
Connectivity and Mobility
FISCAL IMPACT
There is no additional fiscal impact associated with this item. Costs incurred for legally required publication of public hearing notices have been absorbed in the current fiscal year 2025/2026 Operating Budget in the Engineering division under Legal Advertising (1100-PWD-ENGR- 651400).
The collection and distribution of TUMF funding continues to be administered by WRCOG. Fees are collected from developers and held by WRCOG until such time as an approved project has incurred expenses, paid from TUMF Fund 2310, and a request for reimbursement of TUMF funding on the project is submitted by the City. Approval of this item would ensure that TUMF collected in the future reflects the most current anticipated project costs to adequately support TUMF designated projects.
ATTACHMENTS
1. Ordinance
2.Resolution