Report to City Council
ID: 26-0219 Page 1
TO: Mayor and City Council
FROM: Angelica Frausto-Lupo, Community Development
Director
AGENDA DATE: June 2, 2026
TITLE: MULTIPLE SPECIES HABITAT CONSERVATION PLAN
(MSHCP) LOCAL DEVELOPMENT MITIGATION FEE
AUTOMATIC CONSUMER PRICE INDEX (CPI)
INCREASE (REPORT OF: COMMUNITY
DEVELOPMENT) (DISTRICT: ALL DISTRICTS)
TITLE SUMMARY: MSHCP Automatic CPI Increase
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. ADOPT Resolution No. 2026 -XX, implementing the automatic CPI increase to the Multiple Species Habitat Conservation Plan (MSHCP) Local Development Mitigation Fee pursuant to the Regional Conservation Authority.
a) DETERMINE the adoption of this Resolution is exempt from CEQA pursuant to Section 21080 (b)(8) of the California Public Resources Code and Sections 15273 and 15378 (b)(4) of the State CEQA Guidelines; and
b) APPROVE the implementation of the automatic Consumer Price Index (CPI) increase to the Multiple Species Habitat Conservation Plan (MSHCP) Local Development Mitigation Fee pursuant to the Regional Conservation Authority.
ID: 26-0219 Page 2
SUMMARY
The proposed Resolution is for the implementation of the automatic annual update of the Local Development Mitigation Fee for funding the preservation of natural ecosystems in accordance with the Western Riverside County Multiple Species Habitat Conservation Plan.
DISCUSSION
The voter -approved Measure A sales tax ordinance ("Measure A"), which is administered by the Riverside County Transportation Commission ("RCTC"), requires the City of Moreno Valley to participate in the Western Riverside County Multiple Species Habitat Con servation Plan ("MSHCP") as a condition of receiving Measure A local street and roads funds. Under Measure A, RCTC may not distribute Measure A local streets and road funds to any city in Western Riverside County if the City is not certified by Western Riv erside County Regional Conservation Authority ("RCA") as participating in the MSHCP.
In accordance with the MSHCP Mitigation Fee Implementation Manual dated February 2022, the 2020 Nexus Study, and the 2021 Local Development Mitigation Fee Ordinance adopted by the City Council on February 16, 2021, the fees shall be automatically adjusted annually based on the percentage change over the previous calendar year set forth in the Consumer Price Index for the Riverside - San Bernardino-Ontario metropolitan a rea, and member agencies are mandated to adopt a resolution implementing the fee adjustment no later than sixty (60) days after receiving notice from RCA.
On April 28, 202 6, the City received a Notice to Implement the MSHCP Local Development Mitigation Fee CPI Adjustment for Fiscal Year 2027 from the RCA.
Based on the applicable CPI increase, MSHCP fees will increase by 3.2445%, effective July 1, 202 6, as shown in the table below, which identifies the current fee along with the scheduled rate adjustment.
MSHCP Local Development Mitigation Fee Schedule
Fee Category Current Fee Fee Effective
July 1, 2026
Residential density less than 8.0 dwelling units per acre (fee per dwelling unit) $4,358 $4,632
Residential density between 8.0 and 14.0 dwelling units per acre (fee per dwelling unit) $1,817 $1,931
Residential density greater than 14.0 dwelling units per acre (fee per dwelling unit) $803 $854
Non-Residential/Commercial (fee per acre) $19,615 $20,846 Industrial (fee per acre) $19,615 $20,846
The proposed Resolution, if adopted, will formally implement the scheduled CPI rate adjustment. The proposed adjustment will take effect on July 1, 2026.
ID: 26-0219 Page 3
ENVIRONMENTAL
As provided for in Section 21080(b)(8) of the California Public Resources Code and Sections 15273 and 15378(b)(4) of the State CEQA Guidelines, the proposed fee adjustment is an activity that is exempt from the California Environmental Quality Act (CEQA) as the action taken will not have a significant impact on the environment.
ALTERNATIVES
1. Approve the proposed Resolution and implement the automatic CPI increase to the MSHCP fees. Staff recommends this alternative as it is consistent with the City's approved agreements pertaining to the MSHCP.
2. Do not approve the proposed Resolution. Staff does no t recommend this alternative as it would be inconsistent with agreements pertaining to the MSHCP and would create a potential financial liability for the City.
FISCAL IMPACT
The MSHCP Local Development Mitigation Fees are pass -through fees to the RCA for the purpose of habitat conservation. The proposed automatic CPI fee adjustments will ensure the fee amounts are consistent with the provisions for escalation as set forth in the 2021 Local Development Mitigation Fee Ordinance . This action would ensure ther e is no direct fiscal impact on the City. If the City does not approve the proposed Resolution, the City could become liable for any subsequent under collected fees.
NOTIFICATION
This Staff Report and proposed Resolution were posted on the City’s website at least 72 hours prior to the City Council meeting for public review and inspection.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Rachel Ramirez Angelica Frausto-Lupo
Management Analyst Community Development Director
Concurred By:
Regine Kennedy
Principal Planner
CITY COUNCIL GOALS
Advocacy: Develop cooperative intergovernmental relationships and be a forceful advocate of City policies, objectives, and goals to appropriate external governments, agencies and corporations.
Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an excellent image about our City by developing and
ID: 26-0219 Page 4
executing programs which will result in quality development, enha nced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
Positive Environment: Create a positive environment for the development of Moreno Valley's future.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
Objective 5.5: Promote a healthy community and lifestyle.
ID: 26-0219 Page 5
Report Approval Details
Document Title: STAFFREPORT_CDD_MSHCP FEE CPI INCREASE.docx Attachments: - Resolution No. 2026-XX.doc
- RCA Letter_Dated April 26, 2026.pdf
Final Approval Date: May 27, 2026
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Sergio Madera
Angelica Frausto-Lupo
Sean Kelleher
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez