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FIRST AMENDMENT TO COOPERATIVE AGREEMENT
South Norco Channel, Stage 2
Project No. 2-0-00150
This First Amendment to Cooperative Agreement ("First Amendment"), dated as of __________________, is entered into by and between the RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT, a body corporate and politic ("DISTRICT"), and the CITY OF NORCO, a municipal corporation ("CITY"). DISTRICT and CITY are collectively referred to herein as "Parties" and individually as "Party". The Parties hereby agree as follows:
RECITALS
A. DISTRICTandCITY have entered intothat certainCooperativeAgreement dated November 10, 2020 [DISTRICT's Board Agenda Item No. 11.3], hereinafter called "Original Agreement", to support the construction of the South Norco Channel, Stage 2 ("PROJECT"), which will provide the necessary flood control and drainage improvements for the immediate adjacent areas and help reduce the floodplain limits within CITY. PROJECT will convey storm flows from Hamner Avenue to an existing reinforced concrete box ("RCB") south of Parkridge Avenue.
B. Pursuant to Original Agreement, DISTRICT desired to contribute a total amount not to exceed Seven Million Three Hundred Forty Thousand Two Hundred Eighty-Six Dollars ($7,340,286) to CITY toward CITY's construction of PROJECTinfrastructure.
C. Subsequent to the execution ofOriginal Agreement, DISTRICT and CITY, recognize the original estimates of costs will exceed DISTRICT's contribution described in Original Agreement. Therefore, due to mutual interests, DISTRICT and CITY agree to revise the amount of DISTRICT's financial contribution.
D. Original Agreement together with the First Amendment are collectively referred to herein as "AGREEMENT".
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E. Section III.12 of Original Agreement specifies that it may be changed or modified only upon the written consent of Partiesthereto.
NOW, THEREFORE, in consideration of the preceding recitals and the mutual covenants hereinafter contained, the Parties hereto mutually agree to amend AGREEMENT as follows:
1. Last sentence in RECITALS H of AGREEMENT is hereby amended to read:
"DISTRICT TOTAL CONTRIBUTION shall not exceed a total sum of Twenty-Five Million Two Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($25,265,950)."
2. Last sentence in SECTION I.4 of AGREEMENT is hereby amended to read:
"DISTRICT TOTAL CONTRIBUTION shall not exceed the total amount of Twenty-Five Million Two Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($25,265,950)."
3. First sentence in SECTION I.20 of AGREEMENT is hereby amended to read:
"Issue a fourth invoice to DISTRICT (Attention: Chief of Planning Division) for the payment of CONSTRUCTION CONTRIBUTION and CONTRACT ADMINISTRATION CONTRIBUTION at the time of
providing written notice of the award of a construction contract as set forth in Section I.18, subject to and provided that DISTRICT TOTAL CONTRIBUTION shall not exceed the total amount of Twenty-Five Million Two Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($25,265,950)."
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4. Last sentence of SECTION I.36 of AGREEMENT is hereby amended to read:
"If applicable, invoice DISTRICT for CONSTRUCTION CHANGE ORDERS CONTRIBUTION, subject to and provided that DISTRICT CONTRIBUTION shall not exceed Twenty-Five Million Two Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($25,265,950)."
5. Last sentence of SECTION II.3 of AGREEMENT is hereby amended to read:
"DISTRICT TOTAL CONTRIBUTION shall not exceed the total sum amount of Twenty-Five Million Two Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($25,265,950)."
6. First sentence of SECTION II.11 of AGREEMENT is hereby amended to read:
"Pay CITY, within thirty days after receipt of CITY's fourth invoice for CONSTRUCTION CONTRIBUTION and CONTRACT
ADMINISTRATION CONTRIBUTION as set forth in Section I.20, subject to and provided that DISTRICT TOTAL CONTRIBUTION shall not exceed the total amount of Twenty-Five Million Two Hundred SixtyFive Thousand Nine Hundred Fifty Dollars ($25,265,950)."
7. SECTION II.15 of AGREEMENT is hereby amended to read:
"If applicable, pay CITY within thirty days after receipt of CITY's appropriate invoice, for CONSTRUCTION CHANGE ORDERS
CONTRIBUTION as set forth in Section I.36, provided that (i) DISTRICT TOTAL CONTRIBUTION shall not exceed a total sum of Twenty-Five
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Million Two Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($25,265,950)."
8. SECTION III.1 of AGREEMENT is hereby amended to read:
"DISTRICT TOTAL CONTRIBUTION shall not exceed a total sum of Twenty-Five Million Two Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($25,265,950) and shall be used by CITY solely for the purpose of designing and constructing, right of way acquisition and obtaining the environment permits for PROJECT as set forth herein."
9. Except to the extent specifically deleted, added to, or amended herein, all of the terms, covenants and conditions of said Original Agreement executed on November 10, 2020, shall remain in full force and effect between Parties hereto.
10. This First Amendment shall not be binding or consummated until its approval by DISTRICT's Board of Supervisors and fully executed by Parties.
11. This First Amendment may be executed in any number of counterparts, eachof which will be an original, but all of which together will constitute one instrument. Each Party of this First Amendment agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ("CUETA") Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this First Amendment. The Parties further agree that the electronic signatures of the Parties included in this First Amendment are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to CUETA as amended from time to time. CUETA authorizes use of an electronic signature for transactions and contracts among Parties in California, including a government agency. Digital signature means an electronic identifier, created by computer,
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intended by the Party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the Parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.
//
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[Signatures on following page]
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In WITNESS WHEREOF, the Parties hereto have executed this First Amendment on .
(to be filled in by Clerk of the Board)
RECOMMENDED FOR APPROVAL:
RIVERSIDE COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT,
By
JASON E. UHLEY
General Manager-Chief Engineer
a body corporate and politic
By
KAREN SPIEGEL, Chair
Riverside County Flood Control and Water
Conservation District Board of Supervisors
APPROVED AS TO FORM: ATTEST:
MINH C. TRAN
County Counsel
KIMBERLY RECTOR
Clerk of the Board
By
KRISTINE BELL-VALDEZ
Supervising Deputy County Counsel
By
Deputy
(SEAL)
First Amendment to Cooperative Agreement with City of Norco South Norco Channel, Stage 2
Project No. 2-0-00150
04/01/26
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RECOMMENDED FOR APPROVAL: CITY OF NORCO, a municipal corporation By
LISETTE FREE
City Manager
By
ROBIN GRUNDMEYER
Mayor
APPROVED AS TO FORM: ATTEST:
By
COLIN BURNS
City Attorney
By
JANET MARTINEZ, CMC
Interim City Clerk
(SEAL)
First Amendment to Cooperative Agreement with City of Norco South Norco Channel, Stage 2
Project No. 2-0-00150
04/01/26
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City Council
STAFF REPORT
Date: May 6, 2026 Agenda Item:
3.I.
To: Honorable Mayor and City Council Members
From: Colby Cataldi, Community Development Director
Prepared By: Lacey David, Senior Community Development
Specialist
Department: Community Development
SUBJECT:
Second Reading and Adoption of Ordinance No. 1141, Code Amendment 2026-01, An Ordinance of the City of Norco amending Norco Municipal Code Chapter 3.50 to update participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program, and Resolution 2026-20, a resolution to adopt the TUMF schedule to establish Construction Cost Index adjustments.
RECOMMENDATION:
Adopt Ordinance No. 1141, amending and updating the City’s TUMF Ordinance.
SUMMARY:
Pursuant to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.), the Western Riverside Council of Governments (WRCOG) has prepared a new nexus study (“2024 Nexus Study”) to update the Transportation Uniform Mitigation Fees (TUMF). On September 9, 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.
BACKGROUND:
At its meeting on April 18, 2026, the City Council introduced for first reading an Ordinance that establishes the legal mechanism for implementing the WRCOGapproved automatic CCI adjustment. Future automatic Construction Cost Index (CCI) adjustments will be implemented administratively in accordance with the adopted Ordinance and will not require a separate public hearing, streamlining the annual update process while maintaining consistency with the TUMF Administrative Plan.
FISCAL IMPACT:
This agenda item will not result in a fiscal impact.
RELATIONSHIP TO STRATEGIC PLAN:
This agenda item is consistent with Strategic Plan Direction No. 3, "Economic Development and Financial Stability."
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Joshua Calhoun, Finance Director Approved by: Lisette Free, City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):
Ordinance No. 1141
ORDINANCE NO. 1141
AN ORDINANCE OF THE CITY OF NORCO AMENDING
ORDINANCE NO. 1127 TO ESTABLISH CONSTRUCTION COST
INDEX ADJUSTMENTS TO THE WESTERN RIVERSIDE COUNTY
TRANSPORTATION UNIFORM MITIGATION FEE (TUMF)
PROGRAM.
WHEREAS, the City of Norco is a member agency 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, the WRCOG Member Agencies developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials in Western Riverside County (the “Regional System”) could be made up in part by a Transportation Uniform Mitigation Fee (“TUMF”) on future residential, commercial and industrial development; and
WHEREAS, in furtherance of this plan, the WRCOG Executive Committee adopted the “Western Riverside County Transportation Uniform Fee Nexus Study”, dated October 18, 2002 (the “2002 Nexus Study”); and
WHEREAS, based on the 2002 Nexus Study, the City adopted Ordinance 804 on February 5,2003 (the “TUMF Ordinance”) pursuant to California Government Code sections 66000 et seq. authorizing the City to impose the Transportation Uniform Mitigation Fee (“TUMF”) upon new development; and
WHEREAS, in 2016, the TUMF Nexus Study (“2016 Nexus Study”) was updated for the purpose of updating the fees. On July 10, 2017, the WRCOG Executive Committee reviewed the 2016 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program; and
WHEREAS, on September 6, 2017, the City adopted Ordinance No. 1025 which adopted the 2016 Nexus Study and updated the TUMF; and
WHEREAS, in 2018, the TUMF Program was altered to adopt a process in which WRCOG calculates and collects TUMF on behalf of member agencies under the Western Riverside County Transportation Uniform Mitigation Fee Program Ordinance of 2018; and
WHEREAS, the City adopted Ordinance No. 1044 on January 16, 2019 allowing WRCOG to calculate and collect TUMF on behalf of the City; and WHEREAS, WRCOG, with the assistance of TUMF Participating Jurisdictions, prepared an updated nexus study entitled “Transportation Uniform Mitigation Fee Nexus Study: 2024 Update” (“2024 Nexus Study”) pursuant to California Government Code sections 66000 et seq. (the Mitigation Fee Act), for the purpose of updating the fees; and
Ordinance No. 1141
May 6, 2026
WHEREAS, in September 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program; and WHEREAS, on January 15, 2025, the City Council approved Ordinance No. 1127, which adopted the 2024 Nexus Study and its findings; and WHEREAS, the TUMF Administrative Plan calls for a Construction Cost Index (“CCI”) adjustment to be brought forth to the WRCOG Executive Committee on an annual basis; and
WHEREAS, on December 1, 2025, the WRCOG Executive Committee approved the implementation of an automatic CCI adjustment for all TUMF land uses tied to the September indices of the National Association of Realtors and Engineering News Record with a cap at 5% of any annual adjustments; and
WHEREAS, an automatic CCI adjustment ensures that fee levels keep pace with increases in cost of constructing transportation projects and avoids large increases at comprehensive TUMF Nexus Study updates; and
WHEREAS, this approach also allows for consistency and predictability for the TUMF Program, while ensuring that the fair share principles under AB 1600 are satisfied; and
WHEREAS, the City Council desires to provide for automatic inflationary adjustments to the TUMF to reflect changes in construction costs over time, without modifying the underlying fee nexus, land use assumptions, or fee methodology; and WHEREAS, this Ordinance also includes minor updates to the definitions portion of the previous Ordinance to clarify the definitions of residential units.
NOW, THEREFORE, the City Council of the City of Norco does hereby ORDAIN:
SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. The definition of “Multi-Family Residential Unit” outlined in Section 3(H) of Ordinance No. 1127 is hereby amended to read as follows:
“H. “Multi-Family Residential Unit” means a residential dwelling unit that is physically attached to one or more other dwelling units by a shared wall, floor, ceiling, roof, or structural foundation, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). Multi-family residential units include, but are not limited to, duplexes, townhomes, apartments, and condominiums with attached units. As outlined in the Ordinance, accessory dwelling units
Ordinance No. 1141
May 6, 2026
(ADUs) and junior accessory dwelling units (JADUs), as defined by state law, are exempt from TUMF and shall not be counted in determining residential land use classification.” SECTION 3. The definition of “Single Family Residential Unit” outlined in Section 3(N) of Ordinance No. 1127 is hereby amended to read as follows:
“N. Single Family Residential Unit” means a residential dwelling unit that is physically detached from any other dwelling unit, sharing no common wall, floor, ceiling, roof, or structural foundation with another dwelling unit, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). As outlined in the Ordinance, accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), as defined by state law, are exempt from TUMF and shall not be counted in determining residential land use classification.” SECTION 4. Section 4(C)(1) is hereby added to Ordinance No. 1141 to read as follows:
“Beginning July 1, 2026, and annually thereafter, the Transportation Uniform Mitigation Fee (TUMF) shall be automatically adjusted to reflect changes in construction costs.
The annual adjustment shall be calculated by WRCOG based on a blended Construction Cost Index derived from: (1) the National Association of Realtors – Median Sales Price of Existing Single-Family Homes, and (2) the Engineering News-Record (ENR) Construction Cost Index, using the September values of each index from the prior calendar year.
The percentage adjustment applied to the TUMF shall equal the annual percentage change in the blended index; provided, however, that in no event shall the annual adjustment exceed five percent (5%), whether positive or negative.
The calculated adjustment shall be implemented on July 1 of the year following index calculation.
If either referenced index is discontinued or materially altered, WRCOG shall apply a comparable, industry-recognized index that most closely reflects regional transportation construction costs.”
SECTION 5. Effect. No provisions of this Ordinance shall entitle any person who has already paid the TUMF to receive a refund, credit or reimbursement of such payment.
This Ordinance does not create any new TUMF.
Ordinance No. 1141
May 6, 2026
SECTION 6. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected.
SECTION 7. No Procedural Defenses. Prohibition of Jurisdictions from raising procedural defenses, including without limitation a statute of limitations, laches, the California Government Tort Claims Act, and necessary parties in a dispute with WRCOG regarding the matters set forth herein.
SECTION 8. Judicial Review. In accordance with State law, any judicial action or proceeding to attack, review, set aside, void or annul this Ordinance shall be commenced within 30 days of the date of adoption of this Ordinance.
SECTION 9. Ordinance No. 1141. This Ordinance amends certain provisions of Ordinance No. 1127 provided this Ordinance is not declared invalid or unenforceable by a court of competent jurisdiction. If, for whatever reason, this Ordinance is declared invalid or unenforceable by a court of competent jurisdiction, Ordinance No. 1127 all other related ordinances and polices shall remain in full force and effect.
SECTION 10. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.
___________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
__________________________
Interim City Clerk
City of Norco, California
Ordinance No. 1141
May 6, 2026
I, Janet Martniez, CMC, Interim City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was INTRODUCED by the City Council of the City of Norco, California, at a regular meeting thereof held on April 15, 2026, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
I, Janet Martniez, CMC, Interim City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was ADOPTED by the City Council of the City of Norco, California, at a regular meeting thereof held on May 6, 2026, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on May 6, 2026.
________________________
Interim City Clerk
City of Norco, California