Perris City Council
October 13, 2026

11.F
BACKGROUND/DISCUSSION:

BUDGET (or FISCAL) IMPACT:

MEETING DATE: October 13, 2026
SUBJECT: Consideration to adopt Proposed Resolution Number (next in order) regarding Annexation of CUP 23-05025 to the City’s Flood Control Maintenance District No. 1 (FCMD 1). Owner(s): Basraon, LLC, APN(s): 305-080-082, CUP 23-05025 is located within the Perris Spectrum Shopping Center.

REQUESTED ACTION: That the City Council:

1. Open a Public Hearing on Annexation of CUP 23-05025 to the City’s Flood Control Maintenance District No. 1 (Flood Control Facilities)

2. Open 1 Ballot

3. Adopt the Resolution Ordering the Annexation of CUP 23-05025 to the City’s Flood Control Maintenance District, Approving the Engineer’s Report, and the Levying of the Fiscal Year 2026-2027 Assessments
CONTACT: John Pourkazemi, City Engineer
CUP 23-05025 is an approved development project, approved by Planning Commission on October 18, 2023. The project consists of an 8,000 square foot multi-tenant commercial building consisting of a 3,000 square foot restaurant and two 2,500 square foot tenant spaces on an existing 1.16 acre lot within the Perris Spectrum shopping center. (See attached Location Map).

On September 8, 2026, resolutions were approved stating the City Council’s intention to annex this project into the City’s Flood Control Maintenance District and set the Public Hearing date for October 13, 2026.

The proposed maximum annual assessments are levied on the property within the annexation. They are subject to Standard Inflation Factors for the greater of the Consumer Price Index (“CPI”) or three 748
percent (3%), plus energy and water. The current maximum annual assessments, by district, are as follows:

Maintenance District
Maximum
Annual
Assessment
Flood Control Maintenance District No. 1 (Flood Control Facilities) $ 657.28 Total Maximum Annual Assessment $ 657.28
Prepared By: Enrique Najera, Managers Assistant
Attachments:

1. LOCATION MAP.pdf

2. ANNEXATION RESOLUTION FOR FCMD NO. 1.pdf
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Attachment No. 1
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AZ
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RIS
BLV
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ORANGE AVE
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ANNEXATION OF CUP 23-052025 TO
FLOOD CONTROL MAINTENANCE DISTRICT NO. 1

NUEVO RD

RIDER ST

REDLANDS AVE

GOETZ RD

RAMONA EXPY

PERRIS BLVD

CASE RD
§¨¦74
21§¨¦5

SITE LOCATION
SITE
1 MAP

REFERENCE
NUMBER

ASSESSOR'S PARCEL
NUMBER
1 305-080-082
Facility Maximum Annual Assessment
Flood Control Facilities $657.28
Total Maximum Annual Assessment $657.28
Owner: Basraon, LLC
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Attachment No. 2
752

RESOLUTION NUMBER XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PERRIS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,

ORDERING THE WORK IN CONNECTION WITH
ANNEXATION OF CUP 23-05025 TO BENEFIT ZONE 168,

CITY OF PERRIS FLOOD CONTROL MAINTENANCE
DISTRICT NO. 1, GIVING FINAL APPROVAL OF THE
ENGINEER’S REPORT, AND LEVYING THE ASSESSMENT
FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council of the City of Perris, County of Riverside, California (“the City Council”) did on the 8th day of September 2026, adopt its Resolution of Intention Number 6833 to order the therein described work in connection with the annexation and assessment procedures in the City of Perris Flood Control Maintenance District No. 1 (the “District”), and which a Notice of Public Hearing was duly and legally published in the time, form and manner as required by law, shown by the Affidavit of Publication of said Notice on file in the office of the City Clerk; and
WHEREAS, after the adoption of Resolution Number 6833, said Resolution was duly posted in the time, form and manner as required by law, shown by the Affidavit of Posting on file in the office of the City Clerk; and
WHEREAS, after the adoption thereof, notice of the adoption of the Resolution of Intention, a Notice of Public Hearing and an Assessment Ballot were duly mailed to all persons owning real property proposed to be assessed for the improvements described in said Resolution of Intention Number 6833, according to the names and addresses of such owners as the same appears on the last equalized assessment roll for taxes of the County of Riverside or more recent information available to the City of Perris, which said documents were duly mailed in the time, form, and manner as required by law, as appears from the Affidavit of Mailing on file in the office of the City Clerk; and
WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom and said City Council having now acquired jurisdiction to order the proposed maintenance work; and WHEREAS, said City Council has determined that a majority protest does not exist.

NOW, THEREFORE, BE IT RESOLVED, ADOPTED, SIGNED and APPROVED by the City Council of the City of Perris, California, as follows:
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RESOLUTION NUMBER XXXX Page 2
Section 1. That the public interest and convenience requires the annexation to the District and levying assessments for maintenance, and said City Council hereby orders that the work, as set forth and described in said Resolution of Intention Number 6833, be done and made.

Section 2. Be it further resolved that:

A. The Riverside County assigned fund number for the Flood Control Maintenance District No. 1 and the annexation thereto, is 68-2657.

B. The assessments are in compliance with all laws pertaining to the levy of assessments in accordance with Section 53750 et seq. of the State of California Government Code.

C. The assessments are in compliance with all laws pertaining to the levy of assessments in accordance with Section 22500 et seq. of the State of California Streets and Highways Code.

D. The assessments are levied without regard to the property value.

E. The purpose of the assessments is to provide flood control facility maintenance on those lands that will benefit the parcels being assessed.

Section 3. That the report filed by the Engineer is hereby finally approved.

Section 4. Be it finally resolved that the method of assessment in the Engineer’s Report is hereby approved and the assessments for Fiscal Year 2026-2027 are hereby levied.

ADOPTED, SIGNED and APPROVED this 13th day of October, 2026. ____________________________________
Mayor, Michael M. Vargas
ATTEST:

City Clerk, Nancy Salazar

754
RESOLUTION NUMBER XXXX Page 3

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §

CITY OF PERRIS )
I, Nancy Salazar, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution Number ______ was duly and regularly adopted by the City Council of the City of Perris at a regular meeting held the 13th day of October, 2026, by the following called vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
City Clerk, Nancy Salazar

755

CITY OF PERRIS

CITY COUNCIL

AGENDA SUBMITTAL

11.G
BACKGROUND/DISCUSSION:

MEETING DATE: October 13, 2026
SUBJECT: Consideration to adopt Proposed Resolution Numbers (next in order) approving Annexation of CUP 23-05025 into CFD 2001-3 (North Perris Public Safety District) – Annexation No. 76. CUP 23-05025 is located within the Perris Spectrum Shopping Center. APN(s): 305-080-082.

Owner(s): Basraon.

REQUESTED ACTION: Open a public hearing on Annexation No. 76 to CFD 2001-3 and determine if there are any protests to the Annexation
Adopt a Resolution of the City Council of the City of Perris, acting as the Legislative Body, of Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, calling a Special Election, to submit to Qualified Electors, within Proposed Annexation No. 76 the question of annexing such territory and levying of a Special Tax within the area of Proposed Annexation No. 76
Conduct the Special Election relating to Annexation No. 76 Adopt a Resolution of the City Council of the City of Perris, acting as the Legislative Body of the Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, Declaring the results of the Special Election relating to Annexation No. 76, and Ordering the Annexation of such territory, and directing the Recording of a Notice of Special Tax Lien CONTACT: Matthew Schenk, CPA, Director of Finance
CUP 23-05025 is an approved development project, approved by Planning Commission on October 18, 2023. The project consists of an 8,000 square foot multi-tenant commercial building consisting of a 3,000 square foot restaurant and two 2,500 square foot tenant spaces on an existing 1.16 acre lot within the Perris Spectrum shopping center. (See attached Boundary Map.) At its meeting on September 8, 2026, the City Council of the City of Perris (the “City Council”), acting as Legislative Body of Community Facilities District No. 2001-3 (North Perris Public Safety) (the 756
BUDGET (or FISCAL) IMPACT:
“District”), adopted Resolution No. 6834 (“Resolution of Intention”), declaring its intention to Annex Certain Territory to the District and setting the date of the public hearing to October 13, 2026 as the date for conducting the hearing in connection with the annexation of territory to the District. These actions were taken, as required by law, pursuant to a petition submitted to the property owner of the territory proposed for annexation to the District. The Owner, pursuant to the petition submitted concurrently with the Resolution of Intention, submitted a waiver concurrently herewith, waiving certain time periods and noticing requirements required by the Mello-Roos Community Facilities Act of 1982 (“the Act”) and the Elections Code of the State of California. The holding of the Public Hearing and adopting of the resolutions submitted with this report and the conduct of this election will complete the annexation of territory to the District. The property owner has waived notice and the time period for conducting the election pursuant to the Act. The Clerk has not received any written protests prior to the hearing.

The property owner has forwarded a deposit to initiate the annexation process and the City may recoup all costs through the levy of the special tax.

Prepared By: Matthew Schenk, Director of Finance
Attachments:

1. Boundary Map.pdf

2. Perris CFD 2001-3 Annex 76 Reso PH-Calling Election.docx

3. Perris CFD 2001-3 Annex 76 Certify Election.docx
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Attachment No. 1
Boundary Map
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759
ATTACHMENT 2

RESOLUTION CALLING FOR SPECIAL ELECTION
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RESOLUTION NUMBER XXXX Page 2
RESOLUTION NO. XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PERRIS, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2001-3 (NORTH

PERRIS PUBLIC SAFETY) OF THE CITY OF PERRIS,

CALLING A SPECIAL ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS WITHIN PROPOSED
ANNEXATION NO. 76 THE QUESTION OF ANNEXING

SUCH TERRITORY AND LEVYING OF A SPECIAL TAX
WITHIN THE AREA OF PROPOSED ANNEXATION NO. 76
WHEREAS, the City Council (the “Council”) of the City of Perris, California (the “City”), acting in its capacity as the legislative body (the “Legislative Body”) of the Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris (the “District”), on September 8, 2026, has heretofore adopted its Resolution No. 6834 (the “Resolution of Intention”) stating its intention to annex certain territory (the “Property”) as described therein to the District pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”) being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof, and calling a public hearing on the question of the proposed annexation of the Property to the District, including the levying of a special tax on the Property and all other matters as set forth in the Resolution of Intention; and
WHEREAS, a copy of the Resolution of Intention, incorporating a description and map of the proposed boundaries of the territory proposed for annexation to the District, stating the public services to be provided in and for the Property and a plan setting forth sharing of such services provided in common with the existing District, and specifying the special taxes to be levied within the Property and any alteration in the Rate and Method of Apportionment (as defined therein and incorporated herein by this reference) is on file with the City Clerk of the City; and WHEREAS, the Resolution of Intention set October 13, 2026 as the date of the public hearing and to consider the question of the proposed annexation of the Property to the District, including the levying of a special tax on the Property and all other matters set forth in the Resolution of Intention and this Council held said public hearing as required by law; and WHEREAS, notice of the public hearing was duly given as required by Section 53339.4 of the Act or has been duly waived by the property owner; and WHEREAS, the public hearing was held on October 13, 2026; and 761
RESOLUTION NUMBER XXXX Page 3
WHEREAS, at said hearing all persons not exempt from the special tax desiring to be heard on all matters pertaining to the annexation of the Property to the District, the levy of the special tax on the Property, and all other matters as set forth in the Resolution of Intention were heard and a full and fair hearing was held; and
WHEREAS, at the public hearing evidence was presented to the Legislative Body on the matters before it, and the Legislative Body at the conclusion of the hearing is fully advised as to all matters relating to the proposed annexation of the Property to the District, including the levy of the special tax on the Property; and
WHEREAS, it has now been determined that written protests have not been received by registered voters and/or property owners representing more than one-half (1/2) of the area of land proposed to be annexed to the District or within the original District; and WHEREAS, there were not at least twelve (12) registered voters residing within the territory proposed to be annexed to the District during each of the ninety (90) days preceding the closing of the October 13, 2026 public hearing; and
WHEREAS, on the basis of the foregoing, the Legislative Body has determined at this time to proceed with the annexation of the Property to the District, and to call an election therein to authorize such annexation, including the levy of the special tax therein (as such tax is more particularly described in the Resolution of Intention) to pay for the public services proposed to be financed by the District.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Perris, acting in its capacity as the Legislative Body of Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, California, as follows:

Section 1. That the above recitals are all true and correct.

Section 2. Written protests against the annexation of the Property to the District, or against the furnishing of specified services or the levying of a specified special tax within the District, have not been filed by fifty percent (50%) or more of the registered voters, or six (6) registered voters, whichever is greater, residing within the boundaries of the proposed annexation, nor by owners representing one-half (1/2) or more of the area of land proposed to be annexed to the District. All protests and objections, if any, are hereby overruled.

Section 3. The Legislative Body does declare the annexation of the Property to the existing District, to be known and designated as “Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, Annexation No. 76.” The Legislative Body hereby finds and determines that all prior proceedings taken with respect to the annexation of the Property to the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1 of the Act. 762
RESOLUTION NUMBER XXXX Page 4
Section 4. The boundaries and parcels of land to be annexed and in which the public services are to be provided and on which the special taxes will be levied in order to pay the costs and expenses for said public services are generally described as all that territory proposed to be annexed to the existing District as said property is shown on a map as previously approved by the Legislative Body, said map designated “Annexation Map No. 76 to Community Facilities District No. 2001-3, (North Perris Public Safety),” a copy of which is on file in the office of the City Clerk and shall remain open for public inspection. The map of the proposed boundaries of Annexation No. 76 to the District has been recorded in the Office of the County Recorder of Riverside County, California in Book 100, Page 13 of the Book of Maps of Assessments and Community Facilities Districts (Document Number 2026-0291970).

Section 5. The Council finds that the Services, generally described as fire protection and suppression services, and ambulance and paramedic services including all furnishings, equipment and supplies related thereto; police protection services, including but not limited to criminal justice services, including all furnishings, equipment and supplies related thereto, as set forth in Exhibit “B” hereto are necessary to meet the increased demand put upon the City as a result of the development within Annexation No. 76.

Section 6. Except where funds are otherwise available, a special tax is hereby authorized, subject to the approval of the landowners as the eligible electors of the District, to levy annually in accordance with procedures contained in the Act, a special tax within the District, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for the Services and Incidental Expenses. The rate and method of apportionment and manner of collection of the special tax within the District is described in detail in Exhibit “A” attached hereto and incorporated herein by this reference. Exhibit “A” allows each landowner within the District to estimate the maximum amount that may be levied against each parcel.

Section 7. The Rate and Method of Apportionment of the special tax is based on the expected demand that each parcel of real property within the District will place on the Services, on the cost of making the Services available to each parcel within the Property, and on other factors. The Council hereby determines the rate and method of apportionment of the special tax set forth in Exhibit “A” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2001-3 shall become for any reason exempt, wholly or partially, from the levy of the special tax specified on Exhibit “A,” the Council shall, on behalf of Community Facilities District No. 2001-3, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Exhibit “A,” to the extent necessary upon the remaining property within the District which is not delinquent or exempt in order to yield the special tax revenues required for the purposes described herein. The obligation to pay special taxes may be prepaid as set forth in Exhibit “A.” Upon recordation of a notice of special tax lien pursuant to Streets and Highways Code Section 3114.5, continuing lien to secure each levy of the special tax will attach to all nonexempt parcels within the Property and the lien shall continue in force and effect until the special tax obligation is permanently satisfied and the lien canceled in accordance with the law or until collection of the special tax by the Legislative Body ceases. 763
RESOLUTION NUMBER XXXX Page 5
Section 8. Pursuant to Section 53325.7 and 53326 of the Act, a special election is hereby called on behalf of the District on the proposition of levying the special tax on the territory within Annexation No. 76 to the District and establishing an appropriation limit therein. The proposition relating to the District authorizing the levy of the special tax on the Property and establishing an appropriations limit shall be substantially in the form attached hereto as Exhibit “C.”
Section 9. The special election for the District on the proposition of authorizing the levy of the special tax on the Property and establishing an appropriations limit shall be held on October 13, 2026.

Section 10. It is hereby found that there were not at least twelve (12) registered voters that resided within the territory of the proposed Annexation No. 76 during each of the ninety (90) days preceding the closing of the October 13, 2026 public hearing regarding the levy of the special tax on the territory within Annexation No. 76 and establishing an appropriations limit therein and, pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed by personal service, or by mail, with return postage prepaid, by the Election Official, to the landowners of record within the District as of the close of the public hearing. Each landowner shall have one (1) vote for each acre or portion thereof that he or she owns within the District, as provided in Section 53326 of the Act and may return the ballot by mail or in person to the Election Official not later than 6:30 p.m. on October 13, 2026, or 6:30 p.m. on another election day mutually agreed to by the Election Official and the landowners. In accordance with Section 53326(d) of the Act, the election shall be closed and the results certified by the Election Official as soon as all qualified electors have voted.

Section 11. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing such appropriations limit are cast in favor of levying such special tax within the District as determined by the Legislative Body after the canvass of the returns of such election, the Legislative Body may levy such special tax within the District under the Act in the amount and for the purposes as specified in this Resolution. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this Resolution, subject to the Act, except that the special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered. Such special tax may be levied so long as it is needed to pay for the financing of the services.

Section 12. If special taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall not be increased over time except that it may be increased by an amount not to exceed two percent (2.00%) per year to the extent permitted in the rate and method of apportionment; (ii) such tax shall be levied in perpetuity, as further described in Exhibit “A” hereto; and (iii) under no circumstances will such special tax be increased more than ten percent (10%) as a consequence of delinquency or default by the owner of any other parcels within the District by more than ten percent.

Section 13. In the event that a portion of the property in the District shall become for any reason exempt, wholly or partially, from the levy of the special tax specified in Exhibit “A” the Council shall, on behalf of the District, increase the levy to the extent necessary upon the 764
RESOLUTION NUMBER XXXX Page 6
remaining property within the District which is not delinquent or exempt in order to yield the required payments, subject to the maximum tax.

Section 14. The Council finds that there is not an ad valorem property tax currently being levied on property within the proposed District for the exclusive purpose of financing the provision of the same services to the territory of the District as provided by the Services.

Section 15. An appropriations limit for the District is hereby established as an amount equal to all the proceeds of the special tax collected annually and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population.

Section 16. The Elections Official shall cause to be published once in a newspaper of general circulation the text of Proposition A, along with a description of the election proceedings.

The publication shall also state that only the qualified electors in the District may vote on the proposition and that the canvass of the election will take place in the office of the City Clerk following the close of the election. Pursuant to the petition and request, the publication of such notice has been waived by the property owner.

Section 17. The question of levying a special tax and establishing an appropriations limit shall constitute a single election pursuant to Sections 53325.7, 53326 and 53353 of the Act for the purpose of holding said election. Following the close of the election, the election shall be canvassed at the office of the City Clerk, 101 North “D” Street, Perris, California 92570.

Section 18. The Office of the City Manager, 101 North “D” Street, Perris, California 92570, (951) 943-6100, or its designee, is designated to be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and for estimating future special tax levies pursuant to Section 53340.2 of the Government Code.

Section 19. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the Legislative Body hereby establishes the following accountability measures pertaining to the levy by the District of the Special Tax described in Section 6 above:

A. Such Special Tax with respect to the District shall be levied for the specific purposes set forth in and Section 5 hereof and Proposition A referred to herein.

B. The proceeds of the levy of such Special Tax shall be applied only to the specific purposes set forth in Section 5 hereof and Proposition A referred to herein.

C. The District shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited.

D. The City Manager or Finance Director, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3.
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RESOLUTION NUMBER XXXX Page 7
Section 20. The City Clerk is directed to certify and attest to this Resolution, and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the levy of the special tax, and the establishment of the appropriation limit.

Section 21. This Resolution shall take effect immediately upon its adoption.

ADOPTED, SIGNED and APPROVED this 13th day of October, 2026. _______________________________
Mayor, Michael M. Vargas
ATTEST:
_______________________________
City Clerk, Nancy Salazar
766
RESOLUTION NUMBER XXXX Page 8
STATE OF CALIFORNIA ) §
COUNTY OF RIVERSIDE ) §
CITY OF PERRIS ) §

I, NANCY SALAZAR, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution Number _______ was duly and regularly adopted by the City Council of the City of Perris at a regular meeting held the 13th day of October, 2026, by the following called vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
City Clerk, Nancy Salazar
767

RESOLUTION NUMBER XXXX
A-1
Exhibit A

CITY OF PERRIS
COMMUNITY FACILITIES DISTRICT NO. 2001-3

NORTH PERRIS PUBLIC SAFETY

SPECIAL TAX RATE AND METHOD OF APPORTIONMENT
A. BASIS OF SPECIAL TAX LEVY
A Special Tax shall be levied on all Taxable Property in Community Facilities District No. 2001- 3 (“District”), North Perris Public Safety of the City of Perris and collected each fiscal year commencing in Fiscal Year 2005/06 in an amount determined by the Council through the application of this Rate and Method of Apportionment of the Special Tax. All of the real property in CFD No. 2001-3 unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

B. DEFINITIONS
Act means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and following of the California Government Code.

Administrative Expenses means the costs incurred by the City to determine, levy and collect the Special Taxes, including salaries of City employees and the fees of consultants and the costs of collecting installments of the Special Taxes upon the general tax rolls; preparation of required reports, and any other costs required to administer CFD No. 2001-3 as determined by the Finance Director.

Annual Cost(s) means for each fiscal year, the total of 1) the estimated cost of services provided through the Police & Fire Protection Program adopted by the City; 2) Administrative Expenses, and 3) any amounts needed to cure actual or projected delinquencies in Special Taxes for the current or previous fiscal year.

Annual Tax Escalation Factor means an increase in the Maximum Special Tax Rate each year following the Base Year in an amount not to exceed 2.00% annually.

Base Year means Fiscal Year ending June 30, 2006.

CFD No. 2001-3 means the Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris.

City means the City of Perris, California.

Council means the City Council of the City of Perris as the legislative body for CFD No. 2001-3 under the Act.
768

RESOLUTION NUMBER XXXX
A-2
County means the County of Riverside, California.

Developed Parcel means for each fiscal year, each Parcel for which a building permit for new construction or renovations was issued prior to March 1 of the previous fiscal year.

District means the Community Facilities District No. 2001-3, (“CFD 2001-3), North Perris Public Safety of the City of Perris.

Exempt Parcel means any Parcel that is not a Residential Parcel or a Non-Residential Parcel.

Exempt Parcels are exempt from the levy of Special Taxes.

Finance Director means the Finance Director for the City of Perris or his or her designee.

Fiscal Year means the period starting July 1 and ending the following June 30.

Maximum Special Tax means the greatest amount of Special Tax that can be levied against a Parcel in a given fiscal year calculated by multiplying the Maximum Annual Special Tax Rate by the relevant acres or units of the Parcel.

Maximum Special Tax Rate means the amount determined pursuant to Section D below, which will be used in calculating the Maximum Special Tax for a Parcel based on its land use classification. Each fiscal year following the Base Year, the Maximum Special Tax Rate shall be increased in accordance with the Annual Tax Escalation Factor and otherwise adjusted as provided in this Special Tax Rate and Method of Apportionment.

Maximum Special Tax Revenue means the greatest amount of revenue that can be collected in total from a group of Parcels by levying the Maximum Special Tax.

Multi-Family Unit means each multi-family attached residential unit located on a Developed Parcel.

Non-Residential Acres means the acreage of a Non-Residential Parcel. The acreage assigned to such a Parcel shall be that shown on the County assessor’s parcel map.

Non-Residential Parcel means a Developed Parcel for which a building permit(s) was issued for private non-residential use. Non-Residential Parcels do not include Parcels that are intended to be, (1) publicly owned or owned by a regulated public utility, or (2) assigned minimal value or is normally exempt from the levy of general ad valorem property taxes under California law, including homeowners association property, public utility, public streets; schools; parks; and public drainage ways, public landscaping, greenbelts, and public open space.

Parcel means a lot or parcel shown on an assessor’s parcel map with an assigned assessor’s parcel number located in CFD No. 2001-3 based on the last equalized tax rolls of the County. 769

RESOLUTION NUMBER XXXX
A-3
Police & Fire Protection Program means a program adopted by the Council pursuant to Section 53313 of the Act for the provision, in a defined area of benefit, of police and fire protection services that are in addition to those services that would be provided to the area of CFD No. 2001-3 if CFD No. 2001-3 were not in existence.

Residential Parcel means a Developed Parcel for which a building permit(s) was issued for residential use.

Single-Family Unit means a Developed Parcel used for single-family detached residential development.

Special Tax(es) means any tax levy under the Act in CFD No. 2001-3.

Taxable Property means every Residential Parcel and Non-Residential Parcel.

Zone A means property designated as Zone A.

C. DURATION OF THE SPECIAL TAX
Duration of Special Tax for Taxable Property in CFD No. 2001-3 shall remain subject to the Special Tax in perpetuity.

D. ASSIGNMENT OF MAXIMUM SPECIAL TAXES

1. Classification of Parcels
Each fiscal year, using the Definitions above, each Parcel of Taxable Property is to be classified as either a Residential Parcel or Non-Residential Parcel. Each Residential Parcel is to be further classified as either a Single-Family Unit or as the number of Multi-Family Units located on such Parcel.

2. Maximum Special Tax Rates
TABLE 1
Maximum Special Tax Rate for Developed Property in
Community Facilities District No. 2001-3
Fiscal Year 2005/06
Tax Status
Base Year Maximum
Special Tax Rate Tax Levy Basis
Single Family Residential Unit $265.30 Per Unit
Multi-Family Residential Unit $53.06 Per Unit
Non-Residential Parcel $1,061.21 Per Acre
Each Fiscal Year following the Base Year of FY 2005/06, the Maximum Special Tax Rates shall be increased in accordance with the Annual Tax Escalation Factor. 770

RESOLUTION NUMBER XXXX
A-4
E. SETTING THE ANNUAL SPECIAL TAX LEVY
The Special Tax levy for each Parcel of Taxable Property will be established annually as follows:

1. Compute the Annual Costs using the definitions in Section B.

2. Calculate the available special tax revenues by taxing each Parcel of Taxable Property at 100.00% of its Maximum Special Tax. If revenues are greater than the Annual Costs, reduce the tax proportionately against all Parcels until the tax levy is set at an amount sufficient to cover Annual Costs.

3. Levy on each Parcel of Taxable Property the amount calculated above. No Special Tax shall be levied on Exempt Parcels.

The City shall make every effort to correctly assign the number of taxable units and calculate the Special Tax for each Parcel. It shall be the burden of the taxpayer to correct any errors in the determination of the Parcels subject to the tax and their Special Tax assignments.

F. ADMINISTRATIVE CHANGES AND APPEALS
The Finance Director or designee has the authority to make necessary administrative adjustments to the Special Tax Rate and Method of Apportionment in order to remedy any portions of the Special Tax formula that require clarification.

Any taxpayer who feels that the amount of the Special Tax assigned to a Parcel is in error may file a notice with the Finance Director appealing the levy of the Special Tax. The Finance Director will then promptly review the appeal, and if necessary, meet with the applicant. If the Finance Director verifies that the tax should be modified or changed, a recommendation at that time will be made to the Council and, as appropriate, the Special Tax levy shall be corrected and, if applicable in any case, a refund shall be granted.

Interpretations may be made by Resolution of the Council for purposes of clarifying any vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the classification of properties, or any definition applicable to CFD No. 2001-3.

G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes; provided; however, the City or its designee may directly bill the Special Tax and may collect the Special Tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary to meet its financial obligation.
771

RESOLUTION NUMBER XXXX
B-1
Exhibit B
COMMUNITY FACILITIES DISTRICT NO. 2001-3
(NORTH PERRIS PUBLIC SAFETY)
OF THE CITY OF PERRIS, ANNEXATION NO. 76

TYPES OF SERVICES TO BE FINANCED
Fire protection and suppression services, and ambulance and paramedic services including all furnishings, equipment and supplies related thereto; police protection services, including but not limited to criminal justice services, including all furnishings, equipment and supplies related thereto.
772

RESOLUTION NUMBER XXXX
C-1
Exhibit C

OFFICIAL BALLOT

TO BE OPENED ONLY BY THE CANVASSING BOARD
COMMUNITY FACILITIES DISTRICT NO. 2001-3 (NORTH PERRIS PUBLIC SAFETY) OF THE CITY OF PERRIS, ANNEXATION NO. 76

SPECIAL TAX AND APPROPRIATIONS LIMIT ELECTION
October 13, 2026
To vote, mark a cross (+) or (X) in the voting square after the word “YES” or after the word “NO.” The voter should then sign the ballot. All distinguishing marks otherwise made are forbidden and will void the ballot.

This ballot is provided to, Basraon, LLC, as owner or authorized representative of such sole owner of 1.16 acres of land within Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, Annexation No. 76 (the “Property”) and represents 2 of the votes required for annexation.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Perris at 101 North “D” Street, Perris, California 92570 and obtain another.

PROPOSITION A: Shall the Property be annexed and shall a Special Tax be levied within Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, Annexation No. 76 in perpetuity to pay for the provision of fire protection and suppression services, and ambulance and paramedic services including all furnishings, equipment and supplies related thereto; and police protection services, including but not limited to criminal justice services, including all furnishings, equipment and supplies related thereto, as authorized in the Resolution calling election adopted on October 13, 2026 and the Resolution of Intention referred to therein; and shall an appropriations limit be established for Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, Annexation No. 76 pursuant to Article XIIIB of the California Constitution, said appropriations limit to be equal to the amount of all proceeds of the special tax collected annually, as adjusted for changes in the cost of living and changes in population, where said Maximum Special Tax Rate for Fiscal Year 2026-27 is $402.10 for Single-Family Residential Units, $80.42 for Multi-Family Residential Units, and $1,608.44 per acre for Non-Residential Parcels and is subject to an Annual Tax Escalation Factor not to exceed 2.00% annually?
YES
NO
Number of votes: 2
Property Owner: Basraon, LLC
By:
773
ATTACHMENT 3

RESOLUTION DECLARING RESULTS OF

SPECIAL ELECTION
774
RESOLUTION NUMBER XXXX Page 2
RESOLUTION NO. XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PERRIS, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2001-3 (NORTH

PERRIS PUBLIC SAFETY) OF THE CITY OF PERRIS,

DECLARING THE RESULTS OF A SPECIAL ELECTION
RELATING TO ANNEXATION NO. 76 AND ORDERING THE

ANNEXATION OF SUCH TERRITORY, THE LEVYING OF A
SPECIAL TAX WITHIN THE AREA OF ANNEXATION NO. 76

AND DIRECTING THE RECORDING OF A NOTICE OF

SPECIAL TAX LIEN
The City Council (the “Council”) of the City of Perris, California (the “City”), acting in its capacity as the legislative body (the “Legislative Body”) of the Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris (the “District”), does hereby resolve as follows:

WHEREAS, the Legislative Body called and duly held an election in the District pursuant to Resolution No. ______ adopted on October 13, 2026 for the purpose of presenting to the qualified electors within the certain territory proposed to be annexed to the District known and designated as “Annexation No. 76” (the “Property”), a proposition for the levy of a special tax and the establishment of an appropriations limit (“Proposition A”) in accordance with the method set forth in Exhibit “A” to Resolution No. 6834 adopted on September 8, 2026 (the “Resolution of Intention”); and
WHEREAS, the landowners of record within the Property as of the close of the public hearing held on October 13, 2026 unanimously consented to a waiver of the time limits for setting the election and a waiver of any written analysis, arguments or rebuttals as set forth in California Government Code sections 53326 and 53327. Such waivers are set forth in written certificates executed by the landowners which are on file with the City Clerk as election official (the “Election Official”) concurring therein; and
WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Mello-Roos Community Facilities Act of 1982 (the “Act”), the special election was held on October 13, 2026; and
WHEREAS, there has been presented to this Legislative Body a Certificate of the Election Official as to the Results of the Canvass of the Election Returns (the “Certificate of the Election Official”), a copy of which is attached hereto as Exhibit “A.” NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Perris, acting in its capacity as the Legislative Body of Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, California, as follows:

Section 1. That the above recitals are all true and correct. 775
RESOLUTION NUMBER XXXX Page 3
Section 2. The canvass of the votes cast in the Property to be annexed to the District at the special election held on October 13, 2026, as shown in the Certificate of the Election Official, is hereby approved and confirmed.

Section 3. Proposition A presented to the qualified electors of the Property for receipt by the Election Official on October 13, 2026, has received a unanimous vote of the qualified electors voting at said election, and Proposition A has carried. The Legislative Body is hereby authorized to take the necessary steps to levy the special tax authorized by Proposition A on the Property.

Section 4. The City Clerk is hereby directed to enter the title of this Resolution on the minutes of the Legislative Body and to indicate the official declaration of the result of such special election.

Section 5. The Legislative Body hereby determines that the Property is added to and part of the existing District with full legal effect, and herby authorizes the levy of a special tax at the Rate and Method of Apportionment set forth in Exhibit A to the Resolution of Intention. The whole of the territory within the Property shall be subject to the special tax consistent with the provisions of the Act.

Section 6. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the Legislative Body hereby establishes the following accountability measures pertaining to the levy by the District of the Special Tax described in Section 3 above:

A. Such Special Tax with respect to the District shall be levied for the specific purposes set forth in Proposition A and Section 3 hereof.

B. The proceeds of the levy of such Special Tax with respect to each Improvement Area shall be applied only to the specific purposes set forth in Proposition A and Section 3 hereof referred to therein.

C. The District shall establish an account or accounts into which the proceeds of such Special Tax with respect to each Improvement Area shall be deposited.

D. The City Manager, Assistant City Manager and Finance Director, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3.

Section 7. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of Riverside a notice of special tax lien in the form required by the Act, said recording to occur no later than fifteen (15) days following adoption by the City Council of this Resolution.

Section 8. This Resolution shall take effect immediately upon its adoption. 776
RESOLUTION NUMBER XXXX Page 4
Section 9. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

ADOPTED, SIGNED and APPROVED this 13th day of October, 2026. ____________________________________
Mayor, Michael M. Vargas
ATTEST: ______________________________
City Clerk, Nancy Salazar
777
RESOLUTION NUMBER XXXX Page 5

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §

CITY OF PERRIS )

I, NANCY SALAZAR, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution Number ______ was duly and regularly adopted by the City Council of the City of Perris at a regular meeting held the 13th day of October, 2026, by the following called vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
City Clerk, Nancy Salazar
778

RESOLUTION NUMBER XXXX
A-1
Exhibit A
COMMUNITY FACILITIES DISTRICT NO. 2001-3
(NORTH PERRIS PUBLIC SAFETY)
OF THE CITY OF PERRIS, ANNEXATION NO. 76

CERTIFICATE OF THE ELECTION OFFICIAL

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §

CITY OF PERRIS )
I, NANCY SALAZAR, City Clerk in my capacity as Elections Official in the City of Perris, California, in its capacity as the legislative body of the Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, DO HEREBY CERTIFY, that pursuant to the provisions of Section 53325.4 of the Government Code and Division 15, commencing with Section 15000 of the Elections Code of the State of California, I did canvass the return of the votes cast at the Special Tax Election on October 13, 2026, held in
COMMUNITY FACILITIES DISTRICT NO. 2001-3 (NORTH PERRIS PUBLIC SAFETY) OF THE CITY OF PERRIS, ANNEXATION NO. 76
I FURTHER CERTIFY that the Statement of All Votes Cast, to which this certificate is attached, shows the total number of ballots case within the Property to be annexed to the District for the Proposition, and the totals of the respective columns and the totals as shown for the Proposition are full, true and correct.

WITNESS my hand and Official Seal this 13th day of October, 2026.

CITY OF PERRIS, CALIFORNIA, acting as the

LEGISLATIVE BODY OF THE COMMUNITY
FACILITIES DISTRICT NO. 2001-3 (NORTH

PERRIS PUBLIC SAFETY) OF THE CITY OF
PERRIS
By: ______________________________
City Clerk, Nancy Salazar
779

RESOLUTION NUMBER XXXX
A-2
COMMUNITY FACILITIES DISTRICT NO. 2001-3
(NORTH PERRIS PUBLIC SAFETY)
OF THE CITY OF PERRIS, ANNEXATION NO. 76

STATEMENT OF ALL VOTES CAST

SPECIAL TAX ELECTION
Qualified
Landowner
Votes
Total
Votes
Cast YES NO
City of Perris, Community
Facilities District No. 2001-3
(North Perris Public Safety)
of the City of Perris,
Annexation No. 76, Special
Election, October 13, 2026
2 ______ _____ ______
PROPOSITION A: Shall the Property be annexed and shall a Special Tax be levied within Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, Annexation No. 76 in perpetuity to pay for the provision of fire protection and suppression services, and ambulance and paramedic services including all furnishings, equipment and supplies related thereto; and police protection services, including but not limited to criminal justice services, including all furnishings, equipment and supplies related thereto, as authorized in the Resolution calling election adopted on October 13, 2026 and the Resolution of Intention referred to therein; and shall an appropriations limit be established for Community Facilities District No. 2001-3 (North Perris Public Safety) of the City of Perris, Annexation No. 76 pursuant to Article XIIIB of the California Constitution, said appropriations limit to be equal to the amount of all proceeds of the special tax collected annually, as adjusted for changes in the cost of living and changes in population, where said Maximum Special Tax Rate for Fiscal Year 2026-27 is $402.10 for SingleFamily Residential Units, $80.42 for Multi-Family Residential Units, and $1,608.44 per acre for Non-Residential Parcels and is subject to an Annual Tax Escalation Factor not to exceed 2.00% annually?
780

CITY OF PERRIS

CITY COUNCIL

AGENDA SUBMITTAL

11.H
BACKGROUND/DISCUSSION:

MEETING DATE: October 13, 2026
SUBJECT: Consideration to Introduce and Conduct the First Reading, by title only, of Proposed Ordinance Number (next in order)-a proposal to Update the Stephens’ Kangaroo Rat (SKR) mitigation fees for new development projects to include an annual Consumer Price Index (CPI) adjustment.

REQUESTED ACTION: Introduce the first reading of an Ordinance Number (Next In Order) to update the Stephens’ Kangaroo Rat (SKR) mitigation fees for new development projects to include an annual Consumer Price Index (CPI) adjustment.

CONTACT: Kenneth Phung, Director of Development Services The City of Perris is a member of the Riverside County Habitat Conservation Authority (RCHCA), a Joint Powers Authority (JPA) comprised of the County of Riverside and the Cities of Corona, Hemet, Lake Elsinore, Menifee, Moreno Valley, Murrieta, Perris, Riverside, Temecula and Wildomar. As a participating agency, the City of Perris is periodically requested to update applicable Ordnances and Resolutions to authorize the imposition of development impact fees in alignment with RCHCA to help implement the conservation habitat plan.On July 9, 2026, the RCHA Board of directors adopted the 2026 Stephens’ Kangaroo Rate (SKR) Habitation Conservation Plan Mitigation Fee Nexus Study to update the fees on new development projects. As a participating Agency, the City of Perris was contacted to update applicable Ordinances and Resolutions to authorize the imposition of development fees in alignment with RCHCA which is established through a Nexus Study.

Adoption of the RCHA Nexus Study by the RCHCA Board does not update the mitigation fee within member jurisdictions. Each member agency must complete its own local adoption process in accordance with Government Code sections 66016,66016.5,66017, and 66001 before the updated fee may be collected.

The proposed Ordinance (see Attachment 1) and 2026 Nexus Study provides the legal basis for the new SKR fee schedule, which provides the following: (i) identifies the purpose of the revised fees; (ii) implements an annual Consumer Price Index for All urban Consumers (CPI-U), (iii) updates the rates 781
BUDGET (or FISCAL) IMPACT:
for individual lot, agricultural and all other development. The SKR fee is a critical component of the funding for SKR Habit Conservation Plan implementation. The fee has not been updated since 1996 under adoption of Ordinance 1038 and this update will help ensure the continued successful implementation of the plan.

The chart below illustrates the existing fee and proposed fee with the adjustment, that will be effective January 1, 2027:

Current Fee As of January 1, 2027 Land Use Type
$ 250.00 $250.00 Individual Single-Family Home Construction (Single Lot) $ 100.00 $500.00 Agricultural Development Per Gross Acre $ 500.00 $900.00 All Other Development Per Gross Acre
Beginning January 1, 2027, and annually thereafter, the Stephens’ Kangaroo Rat Fee (SKR) shall be adjusted automatically based on the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Riverside-Orange County region, or a successor index. The updated fee level is expected to provide the necessary fee revenues in current dollar terms.

PUBLIC HEARING NOTICE
A Notice of Public Hearing for the City Council meeting was published in the local newspaper as an eight-page ad in compliance with the noticing requirements for fee updates that apply citywide, along with email notification to the local development community consisting of the Building Industry of Southern California-Riverside County Chapter and Commercial Real Estate Development Association (CREDA), which serves as a local chapter for industrial and commercial development. As of the preparation of the staff report, staff has not received any comments regarding this project.

STAFF RECOMMENDATION:

Staff recommends that the City of Perris adopt Ordinance Number (Next in Order) to update the SKR fee schedule with an annual CPI adjustment effective January 1, 2027.

This action will maintain compliance with RCHCA guidelines and the Mitigation Fee Act (Gov. Code §§ 66000 et seq.) and will help ensure continued funding for SKR conservation.

The cost for staff preparation of this item is covered in the 2026-2027 General Fund budget.

Prepared By: Gustavo Lua, Counter Services Supervisor
Attachments:
1 - PROPOSED ORDINANCE NEXT IN ORDER.pdf
2 - ORDINANCE 1038 STEPHENS KANGAROO RAT.pdf
3 - NEXUS STUDY.pdf
782
4 - NOTICE OF PUBLIC HEARING.pdf
783
ATTACHMENT 1
ORDINANCE NO. (NEXT IN ORDER)
784
ORDINANCE NO. (Next in Order)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PERRIS, CALIFORNIA, REPLACING ORDINANCE NO. 1038 ESTABLISHING THE RIVERSIDE COUNTY

STEPHENS' KANGAROO RAT HABITAT CONSERVATION PLAN FEE

ASSESSMENT AREA AND SETTING MITIGATION FEES
The City Council of the City of Perris (“City Council”) Ordains as Follows:

Section 1. TITLE. This ordinance shall be known as the Stephens' Kangaroo Rat Mitigation Fee Ordinance.

Section 2. FINDINGS. The City of Perris finds and determines that:
(a) The Stephens' Kangaroo Rat is listed as a threatened species by the State of California Department of Fish and Wildlife.
(b) The U.S. Fish and Wildlife Service has listed the Stephens' Kangaroo Rat as an endangered species, effective October 31, 1988, pursuant to the Federal Endangered Species Act of 1973, 16 U.S.C. Section 1531 et. seq., which was downlisted to threatened on March 21, 2022.
(c) Following the federal listing of the Stephens' Kangaroo Rat as a threatened species, occupied habitat of the species may not be altered without a Section 10(a) permit issued by the Secretary of the Interior. All requests for a Section 10(a) permit must be accompanied by a Habitat Conservation Plan approved by the U.S. Fish and Wildlife Service. Said permit will then allow for the loss of occupied habitat due to development on the basis that the Habitat Conservation Plan will provide protection for the species and guarantee its survival.
(d) Development within the historic range of the Stephens' Kangaroo Rat has resulted in loss and degradation of occupied Stephens' Kangaroo Rat habitat, increased isolation of Stephens' Kangaroo Rat populations, reduction of potential habitat areas for future colonization, and elimination of corridors which allow the species to relocate as environmental conditions warrant.
(e) The Stephens' Kangaroo Rat's survival cannot be insured on small, isolated acreages surrounded by, or in close proximity to, development or human populations.
(f) Impacts to the Stephens' Kangaroo Rat are not limited to loss or degradation of actually occupied habitat only.
(g) The successful completion and implementation of a Habitat Conservation Plan for the Stephens' Kangaroo Rat would be jeopardized by not implementing a procedure that requires review of each proposed development within the Fee Assessment Area to determine the best means of mitigating impacts to the Stephens' Kangaroo Rat. (h) Each proposed development project shall be reviewed to determine the most appropriate course of action to ensure the survival of the species through one or more of the following: (1) on-site mitigation of impacts to the Stephens' Kangaroo Rat through the reservation or addition of lands included within or immediately adjacent to a potential habitat reserve site, or (2) payment of the Mitigation Fee set by this ordinance or (3) any combination of (1) and (2) consistent with the intent and 785
purpose of this ordinance. A proposed development project may be referred, for review, to Federal and State resource agencies based upon criteria which may be established and agreed upon by the City and said agencies. (I) A program providing for off-site project mitigation in accordance with the development of a Habitat Conservation Plan will provide a mechanism for establishing sufficient habitat areas which can be effectively protected and managed for the Stephens' Kangaroo Rat's survival and recovery. (j) The Stephens’ Kangaroo Rat Habitat Conservation Plan provides a regional conservation and permitting framework necessary to allow development within the SKR Plan Area. All Mitigation Fees collected pursuant to the provisions of this ordinance shall be used for the development, preparation and implementation of a Habitat Conservation Plan for the Stephens' Kangaroo Rat, including, but not limited to, the management of habitat reserve sites, and for the application of a Section 10(a) permit under the Federal Endangered Species Act of 1973, as well as authorization to take the species pursuant to the CaliforniaEndangeredSpeciesAct. (k) Adoption of this ordinance will provide mitigation for projects within the historical range of the Stephens' Kangaroo Rat allowing said projects to proceed during the implementation of the updated Habitat Conservation Plan for the Stephens' Kangaroo Rat, provided said projects are not located in areas identified as and meeting the criteria for potential habitat reserve sites needed for the conservation of the species. The approval of such development projects could jeopardize the survival of the species and therefore would be inconsistent with a Habitat Conservation Plan, even if the Mitigation Fee is paid.
(l) Adoption and implementation of this ordinance demonstrates the City’s intent to cooperate with federal and state agencies to provide for the survival of the Stephens' Kangaroo Rat.
(m) The passage of this ordinance is intended to be consistent with the requirements of state and federal environmental legislation, including the California Environmental Quality Act.
(n) The Riverside County Habitat Conservation Agency Board of Directors adopted the 2026 SKR Habitat Conservation Plan Nexus Study on July 9, 2026. (o) The Nexus Study was made publicly available at least 30 days prior to the public hearing in compliance with Government Code section 66016. (p) The Nexus Study establishes the reasonable relationship and proportionality required under Government Code section 66001.
(q) The City of Perris has reviewed and considered the Nexus Study and incorporates it herein by reference.

Section 3. PURPOSE. The purpose of this Ordinance is to fund implementation of the Updated Stephens’ Kangaroo Rat Habitat Conservation Plan to maintain incidental take authorization for development within the SKR Plan Area. It is the further purpose of this ordinance to provide a method for mitigation of impacts to the Stephens' Kangaroo Rat caused by the loss of its habitat due to development during the implementation of the Updated Habitat Conservation Plan and provide for habitat mitigation to be identified in the Habitat Conservation Plan. Mitigation of impacts to the Stephens' Kangaroo Rat will be accomplished through the review of each proposed development project within the Fee Assessment Area to determine whether on-site mitigation through the 786
reservation or addition of lands included within or immediately adjacent to a potential habitat reserve site or payment of the Mitigation Fee or a combination of both is appropriate and furthers the ultimate Habitat Conservation Plan objectives. A proposed development project may be referred, for review, to Federal and State resource agencies based upon criteria which may be established and agreed upon by the City and said agencies.

This ordinance provides for the establishment of this review process and satisfaction of on-site mitigation to protect potential habitat reserve sites or payment of the Mitigation Fee or a combination of both, which upon implementation will satisfy U.S. Fish and Wildlife Service, California Department of Fish and Wildlife.

Section 4. DEFINITIONS. As used in this ordinance, the following terms shall have the following meanings:
(a) CITY COUNCIL. The City Council for the City of Perris. (b) CERTIFICATE OF OCCUPANCY. "Certificate of Occupancy" shall mean a certificate of occupancy as defined by the Ordinances of the City, or if no definition therein exists, as defined by the laws of the State of California. (c) CITY. The City of Perris
(d) DEVELOPMENT PERMIT. An on or offsite grading, building or surfacing mining permit or mobile home installation permit or mobile home site preparation permit or any other permit or authorization which permits or authorizes the disturbance of land.
(e) FEE ASSESSMENT AREA. All real property located within the area as described in Section 5 of this ordinance.
(f) FINAL INSPECTION. "Final Inspection" shall mean a final inspection as defined by the Ordinances of the City, or if no definition exists, then as such term is defined in the most current adopted version of the California Building Code, or if no definition therein exists, then as such term is defined by the laws of the State of California.
(g) HABITAT CONSERVATION PLAN. A plan prepared pursuant to Section 10(a) of the Federal Endangered Species Act of 1973, 16 U.S.C. Section 1539 and applicable provisions of the California Endangered Species Act, California Fish and Game Code Section 2050 et seq.
(h) MITIGATION FEE. The fee imposed pursuant to the provisions of this ordinance. (i) PARCEL. All real property located within the parcel or parcels for which a development permit is applied.
(j) RESIDENTIAL UNIT. A building or portion thereof used by one (1) family and containing but one (1) kitchen, and designed for single family residential purposes only.
(k) SECTION 10(a) PERMIT. A permit issued by the Secretary of the Interior pursuant to Section 10(a) of the Federal Endangered Species Act of 1973, 16 U.S.C. Section 1539.
(l) STEPHENS' KANGAROO RAT. An animal species known as Dipodomys Stephensi.
(m) GRADING PERMIT. "Grading Permit" shall mean a grading permit as defined by the Ordinances of the City, or if no definition exists, then as such term is defined 787
in the most current adopted version of the California Building Code, or if no definition therein exists, then as such term is defined by the laws of the State of California. However, that for purposes of this ordinance, 'grading permit' shall not include the following:
(1) A grading permit wherein grading was previously performed pursuant to a grading permit issued within one (1) year prior to November 15, 1988, and subsequently inspected and approved by the City of Perris Building and Safety Division. In addition, the area to be graded pursuant to said permit shall be the same or substantially the same area previously graded.
(2) A grading permit for real property upon which a detached or attached second unit will be constructed pursuant to O r d i n a n c e N o 1 4 6 5
Section 5. DESIGNATION OF THE FEE ASSESSMENT AREA.

The Mitigation Fee imposed pursuant to this Ordinance shall apply to all new development within the City, including all real property currently within the City limits and any real property subsequently annexed into the City
Section 6. MITIGATION FEE. All applicants for development permits within the boundaries of the Fee Assessment Area who cannot satisfy mitigation requirements through on-site mitigation as determined through the environmental review process shall pay a Mitigation Fee of $900.00 per gross acre of the parcels proposed for development. However, for single-family residences on a single legally created lot, where the building permit is issued to an individual property owner and is not part of a subdivision, tract development, or any coordinated multi-unit residential development, a Mitigation Fee of $250.00 shall be paid; and for agricultural development which requires a development permit excluding the construction of single family residences in connection with said agricultural development, a Mitigation Fee of $500 per gross acre shall be paid.

Section 7. IMPOSITION OF FEE. No development permit for real property located within the boundaries of the Fee Assessment Area shall be issued or approved except upon the condition that on-site mitigation will be provided as determined through the environmental review process or the Mitigation Fee required by this ordinance be paid, and it is determined that said development will not jeopardize the implementation of a Habitat Conservation Plan for the Stephens' Kangaroo Rat.

Section 8. PAYMENT OF FEE. The Mitigation Fee shall be paid upon issuance of a building permit or a certificate of occupancy or upon final inspection, whichever occurs first. Payment of the Mitigation Fee shall satisfy City conditions of approval previously placed on development permits with regard to impact mitigation for the Stephens' Kangaroo Rat which have not been previously satisfied and no further review and approval pursuant to the provisions of this ordinance shall be required.

For a parcel subject to a surface mining permit, the Mitigation Fee due pursuant to the provisions of this ordinance shall be paid upon submission of an application for a special inspection permit under Perris Municipal Code Chapter 19.66 prior to the 788
commencement of the mining operation or in the alternative, may be paid in increments upon submission of an application for a special inspection permit under Perris Municipal Code Chapter 19.66 prior to the commencement of each phase of the mining operation authorized by the surface mining permit. Each increment of payment shall be equal to $1,950.00 multiplied by the sum of (1) the total number of surface acres of land within the applicable phase pursuant to the surface mining permit and (2) the quotient which results from dividing the total number of acres of land covered by the surface mining permit and subject to this ordinance, which are prohibited from disturbance or designated as setback or buffer areas pursuant to the surface mining permit, by the total number of approved phases. The total number of surface acres of land within each phase shall be determined through a physical survey prepared by a licensed surveyor or registered civil engineer.

Section 9. REDUCTION FOR NON-PROFIT ENTITIES. The fees required pursuant to Section 6 shall be reduced by 75 percent for non-profit entities. For purposes of this section, non-profit entities shall be defined as those entities identified in 26 U.S.C.

Section 501(c)(3).

Section 10. EXEMPTIONS. For purposes of this ordinance, the following types of development shall not be required to pay the Mitigation Fee unless such development voluntarily participates in order to mitigate the disturbance of occupied Stephens' Kangaroo Rat habitat:
(a) Reconstruction of any structure damaged or destroyed by fire or other natural causes;
(b) Rehabilitation or remodeling of existing structures, or additions to existing structures;
(c) Development of any parcel for which the California Department of Fish and Wildlife and United States Fish and Wildlife Service has approved other mitigation procedures;
(d) Development of any parcel used by local, state or federal entities for governmental purposes (i.e. public works, schools);
(e) Development of any parcel for which the Mitigation Fee has been previously paid. However, in instances where the fee previously paid was the fee for single family residential development, wherein all lots within the development were greater than 1/2 gross acre in size, and the applicant for a development permit subsequently requests an increase in residential density or a change from a residential to a non-residential use, or in instances where the fee previously paid was the fee for agricultural development and the applicant for a development permit subsequently requests a change from an agricultural to a residential, commercial or industrial use, the fee shall be recalculated for the new density or use pursuant to the provisions of this ordinance. Any difference between the recalculated fee and the previously paid fee shall be required to be paid by the 789
applicant. Development of any parcel for which approval of an amendment, minor change or revision to a tentative tract map or tentative parcel map is sought; or development of any parcel for which approval of a request for substantial conformance or a revised conditional use permit, public use permit or plot plan is sought; or development of any parcel for which approval of an application for substantial conformance or a minor change to a surface mining permit is sought; and all grading permits necessary for the development of the parcel have previously been issued.

Section 11. REFUND.
(1) In the event that the fee provided for by the final Habitat Conservation Plan is less than the Mitigation Fee paid, the current property owner of record may apply for a partial refund of said fee. The amount of any refund due shall be determined by the City in its sole discretion after review of said application.
(2) If an applicant for a development permit has paid the Mitigation Fee as a result of an administrative calculation error, has paid the fee that results in double/duplicate payment for the same permit or parcel, or has paid the fee for a parcel outside and Fee Assessment Area, the applicant may apply for a refund of the Mitigation Fee paid at no cost to applicant. The Director of Development Services shall make the determination as to whether the applicant is entitled to a refund of the fee paid and shall provide a refund, if appropriate.

Section 12. FEE ADJUSTMENT. The Mitigation Fee shall be that amount established by the Riverside County Habitat Conservation Agency Board of Directors, as may be amended from time to time, consistent with Government Code sections 66000 et seq. The Board of Supervisors hereby authorizes implementation of such fee as adopted by the RCHCA Board.

Beginning July 1, 2027, and annually thereafter, the fee shall be adjusted automatically based on the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Riverside-Orange County region, or a successor index.

Any adjustment to the mitigation fee that increases the fee beyond an authorized annual inflation adjustment shall be supported by findings consistent with Government Code section 66001 and shall be based upon an adopted or updated nexus study where required by law. Prior to adoption of any such adjustment, the nexus study and supporting data shall be made publicly available in accordance with Government Code section 66016, including posting at least thirty (30) days before the public hearing.

Any substantive increase in the mitigation fee shall become effective no earlier than sixty (60) days following adoption, consistent with Government Code section 66017.

Adjustments to the Mitigation Fee shall be prospective only. The amount of the Mitigation Fee applicable to any development permit shall be the fee in effect at the time of payment.
790
Nothing herein shall preclude the Board from considering changes in projected development levels, anticipated revenues, availability of other funding sources, or updated cost information in determining the appropriate Mitigation Fee amount.

Section 13. FEE ADMINISTRATION. All Mitigation Fees collected pursuant to the provisions of this ordinance shall be deposited into a Mitigation Fee Account.

Funds in said account shall be expended solely for the development, preparation and implementation of a Habitat Conservation Plan for the Stephens' Kangaroo Rat, including the acquisition of habitat reserve sites, and for the application for a Section 10(a) permit under the Federal Endangered Species Act of 1973.

Section 14. VALIDITY. This ordinance and the various parts, sections and clauses thereof are hereby declared to be severable. If any part, sentence, paragraph, section or clause is adjudged unconstitutional or invalid, the remainder of this ordinance shall not be affected thereby. If any part, sentence, paragraph, section or clause of this ordinance, or its application to any person or entity is adjudged unconstitutional or invalid, such unconstitutionality or invalidity shall affect only such part, sentence, paragraph, section or clause of this ordinance, or person or entity; and shall not affect or impair any of the remaining provisions, parts, sentences, paragraphs, sections or clauses of this ordinance, or its application of other persons or entities. The City hereby declares that this ordinance would have been adopted had such unconstitutional or invalid part, sentence, paragraph, section or clause of this ordinance not been included herein; or had such person or entity been expressly exempted from the application of this ordinance.

Section 15. CREDIT. Where a development project is subject to the provisions of a Development Agreement entered into with the City pursuant to the provisions of Government Code Section 65864 et seq. and the project involves the construction of residential units, the Mitigation Fee required to be paid pursuant to the provisions of this ordinance shall be reduced by $175.00 per residential unit.

Section 16. EFFECTIVE DATE. Pursuant to Government Code section 66017, this Ordinance shall take effect on January 1, 2027. The Mitigation Fee is a required component of the Updated Habitat Conservation Plan for the Stephens' Kangaroo Rat. The city council declares that this ordinance shall be construed as a continuation of existing Ordinance No. 1038 and not as a new enactment, except as to any provisions of this ordinance which are inconsistent therewith. Any development permit previously issued pursuant to Ordinance No. 1038 and complying therewith shall be deemed to comply with this ordinance.

Adopted: 1038 Adopted 07/08/1996 (Eff: 09/08/1996)
791
ATTACHMENT 2
Ordinance 1038
792
follows:

ORDINANCE NUMBER 1038

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF PERRIS, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, REPEALING ORDINANCE NUMBER 840 AND
ESTABUSHING: DEVELOPMENT REQUIREMENTS TO

BENEFIT HABITAT CONSERVATION EFFORTS
The City Council of the City of Perris ("City Council") does ordain as Section 1. TITLE. This Ordinance shall be known as the
Habitat Conservation Ordinance.
that:

Section 2. FINDINGS. The City Council finds and determines (a) The Legislature of the State of California has found and declared that certain species of fish, wildlife and plants are in danger of, or threatened with, extinction due to habitat destruction and exploitation.
(b) The Legislature has further found and declared that these species of fish, wildlife and plants are of historical, economic and scientific value to the people of this State and the conservation, protection and enhancement of these species and their habitat is of state-wide concern.
(c) The Legislature has further found and declared that it is the policy of the State to conserve, protect, restore and enhance the habitat of species that are listed as threatened or endangered, candidates for such listing as well as other species of concern (collectively, listed candidates for listing and other species of concern shall hereinafter be referred to as "Species of Concern").
(d) The Congress of the United States has found and declared that the preservation of Species of Concern is an important national an regional issue which requires the cooperation of cities, counties, the states, the federal government and the owners of property affected by these species.
793
ORDINANCE NUMBER 1038 Page 2
(e) The listing of the Stephens' Kangaroo Rat as an endangered species has resulted in significant adverse economic impacts upon the City and western Riverside County and is likely to have contributed to the recent decline in property values of not only lands which are occupied, but also lands which are not occupied by that species. (f) City, together with the Cities of Corona, Hemet, Lake Elsinore, Moreno Valley, Murrieta, Riverside and Temecula and the County of Riverside have formed the Riverside County Habitat
Conservation Agency ("RCHCA") whose purpos-e is to plan for, acquire, administer, operate and maintain land and facilities for ecosystem conservation and the creation of habitat reserves to implement habitat and ecosystem conservation plans and programs for the Species of Concern. The RCHCA, and each of its members, including City, have recently adopted the "Habitat Conservation Plan for the Stephens' Kangaroo Rat in Western Riverside County, California" ("SKRHCP") and have been issued an incidental take permit from the United States Fish and Wildlife Service and Management Authorization from the California Department of Fish and Game, all of which documents require certain implementation actions on the part of its members, including the City. (g) The City Council has previously adopted Ordinance Number 840 which imposed an impact and mitigation fee of $1,950 per acre to be used exclusively for the preparation and implementation of a habitat conservation plan for the Stephens' Kangaroo Rat. (h) The Board of Directors of the RCHCA has recommended to each of its members that each city and the county amend its Ordinance (i) to enact the implementation measures as set forth in the SKRHCP, the Section 10(a) Permit and the Management Authorization; and, (ii) to reduce the impact and mitigation fee to $500 per acre. The recommendations of the RCHCA with respect to the Impact and Mitigation Fee is based upon the current cash reserves of the RCHCA, its likely expenditures during the ensuing three (3) years to implement the terms of the SKRHCP, which will benefit many other Species of Concern, and to negotiate and develop an ecosystem based multiple species habitat conservation plan which will protect all species in order to reduce the likelihood of additional state or federal listings and to support permits to take Species of Concern should they be listed in the future. 794
ORDINANCE NUMBER 1038 Page 3
(0 The City Council has determined that the benefits accruing to parcels which are occupied by the Stephens' Kangaroo Rat as well as those which are not so occupied are roughly proportional and that a meaningful parcel by parcel evaluation of the benefits which will accrue to those parcels as a result of the implementation of the SKRHCP would not result in a meaningful difference in the amount of the fee so imposed.

SECTION 3. PURPOSES. The purposes of this Ordinance are:
(a) to adopt and require certain implementation measures a required by the SKRHCP, the Section lO(a) Permit and the Management Authorization; and
(b) to adopt and impose an Impact and Mitigation Fee to provide funds to the RCHCA to implement the terms of the SKRHCP.

SECTION 4. DEFINITIONS. As used in this Ordinance, the
following terms shall have the following meanings.
(a) CERTIFICATE OF OCCUPANCY. "Certificate of Occupancy" shall mean a certificate of occupancy as defined by the Ordinances of the City, or it no definition therein exists, as defined by the laws of the State of California.
(b) DEVELOPMENT PERMIT. An on or offsite grading, building or surface mining permit or mobile home installation permit or mobile home site preparation permit or any other permit or authorization which permits or authorizes the disturbance of land.
(c) PLAN AREA. All real property located within the City situated within the boundaries described in Section 5 of this Ordinance. (d) FINAL INSPECTION. "Final Inspection" shall mean a final inspection as defined by the Ordinances of the City, or if no definition therein exists, then as such term is defined in the most current adopted version of the Uniform Building Code, or if no definition therein exists, then as such term is defined by the laws of the State of California.
795
ORDINANCE NUMBER 1038 Page 4
(e) HABIT AT CONSERVATION PLAN. A plan prepared pursuant to Section 10(a) of the Federal Endangered Species Act of 1973, 16 U.S.C. Section 1539 and applicable provisions of the California Endangered Species Act, California Fish and Game Code Section 2050 et seq.
(f) IMP ACT AND MITIGATION FEE. The fee imposed pursuant to the provisions of this Ordinance.
(g) PARCEL. All real property located within the parcel or parcels for which a development permit is applied.

SECTION 5. PLAN AREA. All those certain lands located-within the boundaries described in Exhibit "A" attached hereto and incorporated herein by this reference, which are located within the City are hereby designated the Plan Area for the SKRHCP.

SECTION 6. LAND DISTURBANCE REPORTS.
(a) Until the City has been notified by the RCHCA that those certain Core Reserves as identified in the SKRHCP have been completed, the City from information provided by the applicant for the Development Permit, shall complete and deliver to the RCHCA a Land Disturbance Report for all Development Permits issued for real property located within the boundaries of the Plan Area which shall set forth the location of the land disturbed, the number of acres within the parcel to be developed, the amount of the Impact and Mitigation Fee paid, if any, and the number of acres occupied by Stephens' Kangaroo Rats which have been disturbed, if any, as described in a biological survey, if required.
(b) The City shall complete and deliver to the RCHCA a Core Reserve Land Disturbance Report, from information provided by the applicant, which sets forth the nature of the project, the number of acres occupied by the Stephens' Kangaroo Rats which will be disturbed and the mitigation paid or provided as required by the SKRHCP for Development Permits for real property located within the boundaries of any Core Reserve which may now or in the future be located within the boundaries of the City as identified in the SKRHCP.
796
(
ORDINANCE NUMBER 1038 PageS
(c) The City shall cause all Land Disturbance Reports and all Core Reserve Land Disturbance Reports to be forwarded to the RCHCA no later than the 15th day of each month.

SECTION 7. BIOLOGICAL SURVEYS. Prior to the issuance of any Development Permit for any project which meets the following criteria, the applicant for such Development Permit for projects located within the boundaries of the Plan Area shall provide the City with a biological survey for Stephens' Kangaroo Rat:
(a) Until the City has been notified by the RCHCA that the Core Reserves as identified in the SKRHCP have been completed, any Development Permit for projects within known Stephens' Kangaroo Rat occupied habitat according to the most recent, Stephens' Kangaroo Rat distribution map available to the City.
(b) Any Development Permit for projects within any Core Reserve as identified in the SKRHCP.
(c) Notwithstanding the foregoing, a biological survey shall not be required in the following instances:
(1) Emergencies: Actions taken by the City or other public agencies in response to public emergencies including but not limited to, floods, earthquakes and fires.
(2) Secondary Structures: Construction of secondary structures including, but not limited to garages, granny units and swimming pools on developed lots.
(3) Agriculture: Bona fide agricultural activities which do not involve the construction of permanent improvements which require building permits.
(4) Fire Prevention: Fire prevention activities as set forth in that certain Cooperative Agreement regarding Fire Prevention entered into among the City, the California Department of Fish and Game and the United States Fish and Wildlife
Service dated February 16, 1995 and any subsequent
amendments thereto.
797
ORDINANCE NUMBER 1038 Page 6
SECTION 8. IMPOSITION OF IMPACT AND MITIGATION FEE.
(a) All applicants for Development Permits within the boundaries of the Plan Area shall pay an Impa.ct and Mitigation Fee of Five Hundred Dollars ($500) per gross acre located within the parcel to be developed and the area disturbed by related offsite improvements except as provided in Section 10 hereof. No Development Permit for real property located within the boundaries of the Plan Area shall be issued or approved without the payment of the Impact and Mitigation Fee and the submission of the biological survey as required by this Ordinance.
(b) Impact and Mitigation Fees shall be reduced by seventy-five percent (75%) for nonprofit entities. For purposes of this section, nonprofit entities shall be defined as those entities identified in 26 U.S.c. 501(c)(3).
(c) Impact and Mitigation Fees for single family residential developments, wherein all lots within the development are greater than one-half (1/2) gross acre in size, shall be Two Hundred Fifty Dollars ($250) per residential unit.
(d) Agricultural development which requires a development permit, including but not limited to dairy farms and excluding poultry farms and the construction of single family residences in connection with said agricultural development, an Impact and Mitigation Fee of One Dollar ($1) per square foot of the buildings to be constructed shall be paid provided that at no time shall such fee exceed the amount required to be paid if a fee of $500 per gross acre were applied to the parcel proposed for agricultural development. 798
ORDINANCE NUMBER 1038 Page 7
SECTION 9. PAYMENT OF FEE.
(a) The Impact and Mitigation Fee shall be paid upon issuance of a Development Permit or a Certificate of Occupancy or upon Final Inspection, whichever first occurs after the effective date of this Ordinance. In those cases where a Development Permit has been previously issued and Impact and Mitigation Fees have previously been paid pursuant to the provisions of this Ordinance or Ordinance Number 840 but such Development Permit has expired, the applicant for a new Development Permit on the- same property, upon submission of proof of such payment satisfactory tot he Director of Planning and Community Development shall pay the Impact and Mitigation Fee less the amount previously paid. In the event the fee previously paid was more than the Impact and Mitigation Fee, the applicant shall not be entitled to a rebate. (b) The Impact and Mitigation Fee payable for parcels for which a surface mining permit is sought shall be paid upon submission of an application for a special inspection permit pursuant to Riverside County Ordinance Number 555 ("Ordinance Number 555") prior to the commencement of the mining operation or in the alternative, may be paid in increments upon submission of an application for a special inspection permit under Ordinance Number 555 prior to the commencement of each phase of the mining operation authorized by the surface mining permit. Each increment of payment shall be equal to $500 multiplied by the sum of (1) the total number of acres of land within the applicable phase pursuant to the surface mining permit; and (2) the quotient which results from dividing the total number of acres of land covered by the surface mining permit and subject to this Ordinance which are prohibited from disturbance or designated as setback or buffer areas pursuant to the surface mining permit, by the total number of approved phases. The total number of acres of land within each phase shall be determined by a physical survey prepared by a licensed surveyor or registered civil engineer.

SECTION 10. EXEMPTIONS. For purposes of this Ordinance, applicants for Development Permits for the following types of development shall not be required to pay an Impact and Mitigation Fee unless such applicant voluntarily participates in order to mitigate the disturbance of habitat occupied by the Stephens' Kangaroo Rat.
799
ORDINANCE NUMBER 1038 Page 8
(a) Reconstruction of any structure damaged or destroyed by fire or other natural causes.
(b) Rehabilitation or remodeling of existing structures, or additions to existing structures.
(c) Development of any parcel for which the California Department of Fish and Game and the United States Fish and Wildlife Service has approved other mitigation procedures; provided, however, that in the event the cost of such mitigation measures equal an amount less than the total amount of the Impact and Mitigation Fee imposed hereby, the applicant for a Development Permit shall pay the difference between the cost of the approved mitigation procedures and the Impact and Mitigation Fee which would otherwise be payable pursuant to the terms of this Ordinance.
(d) Development of any parcel used by local, state or federal governments for governmental purposes (Le. public works, schools). (e) Development of any parcel for which an Impact and Mitigation Fee has been previously paid pursuant to this Ordinance or Ordinance Number 840. However, in instances where the fee previously paid was the fee for single family residential development, wherein all lots within the development were greater than one-half (1/2) gross acre in size, and the applicant for a development permit subsequently requests an increase in residential density or a change from a residential to a non-residential use, or in instances where the parcel has previously been developed for agricultural purposes and the applicant for a Development Permit subsequently requests a change from an agricultural to a residential, commercial or industrial use, the fee shall be recalculated for the new density or use pursuant to the provisions of this Ordinance. Any difference between the recalculated fee and the previously paid fee shall be required to be paid by the applicant, but in the event the fee previously paid is more than the Impact and Mitigation Fee imposed by this Ordinance the applicant shall not be entitled to a rebate.
(f) The construction of public utility transmission facilities. Said exemptions shall not include substations, treatment facilities or pumping stations.
800
ORDINANCE NUMBER 1038 Page 9
(g) Development of any parcel for construction of a detached or attached accessory living quarters will be constructed on a parcel of real property upon which the main building to which the detached or attached accessory living quarters has previously been lawfully constructed.

SECTION 11. REPEAL. The provlslons of this Ordinance are intended to repeal and replace in its entirety Ordinance Number 840.

SECTION 12. FEE ADMINISTRATION. All Impact and Mitigation Fees collected pursuant to the provisions of this Ordinance shall be deposited into an interest-bearing Impact and Mitigation Fee account and the fee and any interest earned shall be forwarded to the RCHCA on or before the 15th day of each month, for expenditure by it for the purposes for which it was created.

SECTION 13. VALIDITY: This Ordinance and the various parts, sections and clauses thereof are hereby declared to be severable. If any part, sentence, paragraph, section or clause is adjudged unconstitutional or invalid, the remainder of this Ordinance shall not be affected thereby. In any part, sentence, paragraph, section or clause of this Ordinance, or its application to any person or entity is adjudged unconstitutional or invalid, such unconstitutionality or invalidity shall affect only such part, sentence, paragraph, section or clause of this Ordinance, or person or entity and shall not affect or impair any of the provisions, parts, sentences, paragraphs, sections or clauses of this Ordinance, or its application to other persons or entities. The City Council hereby declares that this Ordinance would have been adopted had such unconstitutional or invalid part, sentence, paragraph, section or clause of this Ordinance not been included herein, or had such person or entity been expressly exempted from the application of this Ordinance.

SECTION 14. URGENCY MEASURE. This Ordinance is declared to be an urgency measure and shall become effective immediately. The facts which constitute such urgency are as follows:
(a) The RCHCA and its constituent members, including the City were issued in their Section ID(a) permit from the United States Fish and Wildlife Service and their Management Authorization from the California Department of Fish and Game which allows the incidental take of the Stephens' Kangaroo Rat on or about May 7, 1996. The terms of such permit require that certain implementation measures be immediately instituted by both the RCHCA and its members, including the City.
801
ORDINANCE NUMBER 1038 Page 10
Attest:

I~
City Clerk
(b) The failure to immediately adopt such implementation measures are grounds for termination or suspension of said Section 10(a) Permit and Management Authorization, The Provisions of this Ordinance adopt the measures necessary in order to allow the City to implement the terms of the Section 10(a) Permit and Management Authorization.
(c) The previous Mitigation Fee adopted by Ordinance Number 840 was $1950 per acre. The RCHCA and its constituent members, including the City, have been discussing the possible reduction of the fee to the level set by this Ordinance for over 3 months. As a result of these discussions, those seeking Development Permits have delayed applications for such permits in the hope that the Fee would be reduced. A further delay of 60 days in seeking Development Permits would have significant economic effects not only on the construction and building industries, but also. upon the financial affairs of the City as well as the RCHCA which relies upon the Impact and Mitigation Fee to implement the provisions of the SKRHCP. Failure to implement the terms of the SKRHCP and the attendant Section 10(a) Permit and Management Authorization could result not only in the revocation, termination or suspension thereof, but could also have a significant deleterious effect upon the conservation, protection, restoration and enhancement of the Stephens' Kangaroo Rat populations in western Riverside County.

ADOPTED, SIGNED and APPROVED this 8th day of July, 1996. ~:~ .. ~~FPERRlS
802
ORDINANCE NUMBER 1038

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE) ss

CITY OF PERRIS )

I, Beti An Hynes, duly elected City Clerk of th,e City of Perris, California, do hereby certify that the foregoing Ordinance Number 1038 was introduced at a regular meeting thereof held on July 8, 1996 and adopted by the City Council of the City of Perris at a regular meeting thereof held on the 8th day of July, 1996, by the following called vote:

Ayes:

Noes:

Absent:

Landers, Yarbrough, Torres, Denney and Long
None
None
CITY 'cLERK
803
ATTACHMENT 3
Nexus Study
https://www.rchca.us/DocumentCenter/View/1091
804
STEPHENS’ KANGAROO

RAT HABITAT

CONSERVATION PLAN

NEXUS STUDY
REPORT
Prepared for: Prepared by:

Riverside County Habitat Conservation Agency Economic & Planning Systems, Inc.

June 4, 2026
EPS #244054
805
Table of Contents

1. Introduction and Summary of Findings 1
SKR HCP Background ............................................................................................................................................1 Recommended Fee Program Updates ................................................................................................................ 2 Summary of Technical Findings ...........................................................................................................................3

2. Technical Analysis 5

3. Legal Context and Nexus Findings 11
Legal Context.........................................................................................................................................................11 Mitigation Fee Act ................................................................................................................................................11 Purpose of Fee.......................................................................................................................................................12 Use of Fee Revenues............................................................................................................................................12 Relationship............................................................................................................................................................13 Need ........................................................................................................................................................................13 Proportionality.......................................................................................................................................................13 806
List of Tables
Table 1 Summary of Existing and Proposed SKR Mitigation Fees...................................................................3 Table 2 Ongoing Annual RCHCA Expenditures (2025 Dollars)........................................................................5 Table 3 Potential Non-Fee Ongoing Revenues ...................................................................................................6 Table 4 Annual Fee Funding Required ..................................................................................................................7 Table 5 Historical and Projected Growth Metrics...............................................................................................8 Table 6 Annual Fee Funding Required ..................................................................................................................9 807
List of Figures
Figure 1 Map of SKR Plan Area ................................................................................................................................2 808
Economic & Planning Systems, Inc. 1 Introduction and Summary of Findings

1. Introduction and Summary of Findings
This report provides the technical documentation required to update the Stephens’ Kangaroo Rat (SKR) mitigation fee under the State of California’s Mitigation Fee Act (MFA). The SKR fee is a critical component of the funding approach for SKR Habitat Conservation Plan (Plan) implementation. The fee has not been updated since 1996 and this update will help ensure the continued successful implementation of the plan and the associated benefits of the streamlined incidental take permitting it provides to new development.

This first chapter includes background on the SKR HCP, the recommended updated fee schedule, and a summary of the technical findings. The subsequent chapters provide detailed technical analysis and the required nexus findings for fee updates under the Mitigation Fee Act.

SKR HCP Background
The Riverside County Habitat Conservation Agency (RCHCA) was formed as a Joint Powers Authority to implement the SKR HCP. Today, there are eleven member jurisdictions in the SKR Plan Area (see Figure 1). RCHCA’s activities include managing approximately 46,000 acres of reserve lands in Riverside County and biological research to study and protect the SKR population. As of 2022, the SKR is considered a federal and state threatened species, downlisted from its original federal endangered status. The SKR mitigation fee is a critical funding source for RCHCA’s ongoing activities.

The original SKR mitigation fee was set at $1,950 per acre in 1988 and was decreased to $500 per acre in 1996 at the time of completion and approval of the Plan. Unlike many mitigation fees, no adjustments have been made for inflation, reducing the fee level in inflation-adjusted terms over time. 809
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 2 Introduction and Summary of Findings Figure 1 Map of SKR Plan Area
Source: Riverside County Habitat Conservation Agency
Recommended Fee Program Updates
This technical analysis indicates that the SKR fee on most forms of new private development should be increased from $500 per acre to $900 per acre. The fees on the development of large lot single family residences and on new agriculture uses would remain unchanged. Fees on the development of single homes on single lots by individual households would also pay the lower fee. Table 1 summarizes the proposed changes, where applicable, between the current fee and the recommended updated fee.
810
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 3 Introduction and Summary of Findings Table 1 Summary of Existing and Proposed SKR Mitigation Fees As a point of reference, the cumulative level of inflation based on the Consumer Price Index for All Urban Consumers in the United States (CPI-U) between 1996 and 2025 was 106 percent, equivalent to an average annual inflation rate of about 2.5 percent. If automatic annual inflationary adjustments had been integrated into the fee, the $500 per acre SKR mitigation fee would have been over $1,000 per acre in today’s dollar terms. To avoid falling behind in the future, it is recommended that the RCHCA update the fee annually and automatically based on an inflation index.

Summary of Technical Findings

1. The revised, required SKR Mitigation Fee is calculated at $900 per acre. This is the mitigation fee estimated required to ensure new development in the SKR Plan area provides sufficient average annual funding to cover the annual HCP implementation costs. This represents an 80 percent increase from the current fee set in 1996, an increase which remains below the overall level of inflation since that time.

2. RCHCA requires approximately $1.9 million annually (in 2025 dollars) in funding to cover its ongoing activities and obligations under the Plan. The RCHCA is responsible for a broad range of ongoing reserve management activities and biological research under the Plan and has annual costs associated with staffing, consultants, services, and supplies.

Use Type Fee Basis Existing Fee Proposed Fee
Individual Single-Family Home Construction (Single Parcel)1 per dwelling unit $250 $250 Agriculture2 per gross acre $100 $500
All Other Development3 per gross acre $500 $900
[1] This fee category applies only to the construction of a single-family residence on a single legally created lot, where the building permit is issued to an individual property owner and is not part of a subdivision, tract development, or any coordinated multi-unit residential development.

This category may include one accessory dwelling unit (ADU) constructed in conjunction with the primary residence. This category shall not apply to any subdivision or parcel map creating multiple residential lots, tract or master-planned developments, or any development involving multiple residential units constructed pursuant to a common development plan, whether built simultaneously or in phases. All such developments shall be subject to the applicable per gross acre fee.
[2] Agriculture developments pay an existing fee of $100 per development 1% of the valuation of a building, whichever is greater and not to exceed $500 per gross acre.. The proposed updated mitigation fee is simplified to $500 per gross acre of development. [3] This fee category applies to all development not otherwise classified as agricultural development or qualifying under Footnote 1. Nonprofit development projects may qualify for a fee reduction of up to seventy-five (75) percent, as determined by the implementing jurisdiction, provided that the reduction is supported by findings that the remaining mitigation costs are funded through other available sources and that the reduction does not create a funding shortfall for implementation of the Habitat Conservation Plan. 811
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 4 Introduction and Summary of Findings

3. The required annual funding from the SKR mitigation fee is about $1.6 million annually. Through interest revenues from its funding balances and payments for contract services, the RCHCA accrues about $300,000 annually in non-fee revenues. As a result, the net annual funding required from SKR fees to ensure the HCP can cover its implementation obligations is about $1.6 million annually.

4. The required $900 per acre fee level is derived from the required fee funding and the expected level of annual development. Within the Plan Area, the forecast, average annual development is estimated to be about 1,770 acres per year. Spreading the net HCP implementation costs evenly and proportionately across this expected level of development results in a required fee of $900 per acre. The level of future development and fee payment should be tracked carefully by the RCHCA. Variations by year are to be expected, but systematic differences from the forecasts may require further review and update of the nexus study.

5. To keep up with the effects of cost inflation on annual HCP implementation costs, the SKR mitigation fee should be automatically updated annually based on an inflation index. The updated fee level is expected to provide the necessary fee revenues in 2025 dollar terms. Inflation will increase the costs of Plan implementation annually and to keep pace, the SKR fee should be updated automatically each year based on an inflation index. 812
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 5 Technical Analysis

2. Technical Analysis
This chapter provides the more detailed technical analysis and associated process, assumptions, and calculations that were used to derive the updated SKR fee. The fee analysis is designed to reflect the need for and planned use of fee revenues as well as to establish their reasonableness and proportionality with the impacts of new development consistent with the Mitigation Fee Act. It also helps establish the “essential nexus” and “rough proportionality” under the US Supreme Court Nollan/ Dolan decisions. The legal context and specific nexus findings are described in more detail on Chapter 3.

Step 1. Determine RCHCA Ongoing Plan Implementation Costs The RCHCA undertakes a broad set of reserve management and oversight activities each year as required by the HCP. EPS reviewed the most recent RCHCA budget from FY 2024-2025 and worked with District staff to determine which of the 2024/2025 costs are ongoing HCP implementation costs (versus one-time costs). As shown in Table 2, the estimated annual ongoing costs of implementing the HCP are $1.925 million. This includes the personnel, consultant, services, supplies and other expenditures requires to ensure plan implementation. About 70 percent of these costs are associated with Plan implementation as a whole, while the other 30 percent are reserve-specific costs associated with the Lake Matthews Reserve Fund.

Table 2 Ongoing Annual RCHCA Expenditures (2025 Dollars) General Lake Matthews FY2025
Expenditure Item Fund (3) Reserve Fund (3) Total %
Ongoing 2025 Expenditures (1)
RCHCA Salaries and Wages $315,310 $364,619 $679,929 35% Fringe Benefits $152,726 $172,338 $325,064 17%
Overhead (2) $351,495 $0 $351,495 18%
Consulting Labor $250,000 $0 $250,000 13%
Insurance $65,000 $0 $65,000 3%
Weed Abatement $27,500 $0 $27,500 1%
All Other $201,650 $25,000 $226,650 12%
(Services, Supplies, etc.)
Total $1,363,681 $561,957 $1,925,638 100%
(1) Excludes $84,612 one-off expenditure on field equipment funded by a grant. (2) Overhead encompasses payments to WRCOG for overhead services, including HR/ admin etc. (3) Lake Matthews costs are reserve-specific and include reserve manager and techs.

General Fund covers administrative and management personnel and other costs.

Source: RCHCA Fiscal Year 2024/2025 Budget; Economic & Planning Systems, Inc. 813
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 6 Technical Analysis
Step 2. Identify Consistent Ongoing Non-Fee Revenues
To the extent that the RCHCA has consistent sources of other non-fee revenues to help fund some of the implementation costs estimated in Step 1, these revenues are subtracted from the overall HCP implementation costs to determine the net fee revenue required.

RCHCA currently has two secure funding sources that it can apply to help fund a portion of the ongoing HCP implementation costs. These include interest revenues from the General Fund and Lake Matthews reserve funds as well as payment for contract services by the Metropolitan Water District for RCHCA work efforts on their reserves. To fill funding gaps in the past, RCHCA has competed for and, in some cases, won grant funding. However, because of the uncertainty of grant funding, the regulatory agencies do not accept grant funding when reviewing funding assurances for HCPs.

As shown in Table 3, based on the average annual interest rate over the last 10 years and the expected reserves at the start of the 2025/2026 fiscal year, an average annual of about $183,400 in interest revenues is estimated. The payments for contract services can fluctuate by year and are assumed to average about 75 percent of the total allowable charge, or $150,000 each year. Together, these revenue sources are expected to provide about $333,400 in annual revenues to cover a portion of the HCP implementation costs.

Table 3 Potential Non-Fee Ongoing Revenues
General Lake Matthews
Item Fund Fund Total
Annual Interest Revenues
2023/2024 Fund Balance $11,006,233 $2,914,748 $13,920,981 2024/2025 Proposed Use of Fund Balance $518,715 $304,961 $823,676 2025/2026 Remaining Fund Balance $10,487,518 $2,609,787 $13,097,305 Annual Interest Revenues [1] 1.4% $146,825 $36,537 $183,362 (nominal dollars)
Contract Services
Contract Services 75% of Max $105,000 $45,000 $150,000
(nominal dollars) Contract
Total Non-Fee Ongoing Revenue $251,825 $81,537 $333,362 (nominal dollars)
[1] Interest rate represents historical 10-year average (for 2014-2024) annual interest rate for the state's Local Agency Investment Fund (LAIF) in which RCHCA funds are invested.

Source: RCHCA Fiscal Year 2024/2025 Budget; Economic & Planning Systems, Inc.

Assumption
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STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 7 Technical Analysis
Step 3. Annual Fee Funding Required
The calculation of the required habitat mitigation fee is based on the level of fee revenue required. As shown in Table 4, the average annual fee revenue required is about $1.6 million, representing the total annual costs ($1.925 million) minus the estimated annual non-fee revenues ($333,400). This is the level of fee funding required from new development to ensure the RCHCA can implement the HCP and provide new development with incidental take permitting.

Table 4 Annual Fee Funding Required
Step 4. Forecast of Annual Fee-Paying Development
Like all habitat mitigation fees, the fee revenues collected from new development will depend on the level of new development each year. Annual development in the SKR Fee Area (like other areas) will fluctuate based on economic cycles, the availability of developable land, and a host of other factors. To establish a mitigation fee, it is necessary to forecast an average annual pace of development and then track it over time to see if it is generating sufficient revenues and/or whether any refinements in the fee program are appropriate.

As shown in Table 5, EPS developed an annual forecast of about 1,770 acres of new development in the SKR Plan Area based on a combination of historical fee revenue generation and SCAG household/ job projections and development density assumptions.

Historical data provided by the RCHCA indicated an average annual fee revenue collection of about $950,000 over the last four (4) fiscal years. Divided by the current fee level of $500/ acre on most development, this implies an average of about 1,900 acres paid the fee each year.

General Lake Matthews
Item Fund Fund Total
Annual Expenditures $1,363,681 $561,957 $1,925,638
Potential Non-Fee Funding
Interest Revenues $146,825 $36,537 $183,362
Contract Services Revenues $105,000 $45,000 $150,000
Subtotal $251,825 $81,537 $333,362
Fee Funding Required $1,111,856 $480,420 $1,592,276
Source: RCHCA Fiscal Year 2024/2025 Budget; Economic & Planning Systems, Inc. 815
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 8 Technical Analysis
To provide a forward-looking perspective, EPS reviewed the SCAG forecasts of households and jobs in the SKR Plan Area. As shown, an average of 5,200 new households and 6,800 new jobs are forecast annually in the SKR Plan Area. The developed area required to support these forecasts depends on the development densities of new housing and new workspaces. Using 4 dwelling units/acre for residential development and 20 jobs/acre for non-residential development suggests an average annual development of about 1,640 acres annually, comprised of 1,300 acres of residential development and 340 acres on nonresidential. To the extent the average densities vary from these estimates, the level of fee-paying development will vary.

Table 5 Historical and Projected Growth Metrics
Item Total
Historical Fee Revenues
Average Annual Migitation Fee Revenues $953,090
(FY 2021 - 2024)
Implied Developed Mitigation Acres 1,906
(assume $500/ acre)
SCAG Growth Projections
SKR Plan Area: SCAG Annual Household Projections
(2019 - 2045) 5,191
SKR Plan Area: SCAG Annual Job Projections 6,784
(2019 - 2045)
Residential Acres (4 units/ Acre) 1,298
Non-Residential Acres (20 jobs/ Acre) 339
1,637
Average Growth Projection
Developed Acres (1) 1,772
the historical and projected growth estimates.

Source: SCAG; Economic & Planning Systems, Inc.
(1) For purposes of this fee calculation, developed acres average 816
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 9 Technical Analysis
To develop a reasonable forecast of future fee-paying development in the SKR Plan Area, this analysis takes the average of the developed acre estimates from the recent history and from available forecasts. This results in a forecast of about 1,770 acres of development each year.

Step 5. Mitigation Fee Calculation and Inflator
The updated mitigation ratio is about $900 per acre in 2025 dollar terms as shown in Table 6. This is the fee level required for the forecasted 1,772 annual average developed acres to generate the $1.59 million in fee revenue required to ensure the RCHCA, in combination with the other revenues sources noted, can cover the annual costs of implementing the HCP.

Table 6 Annual Fee Funding Required
Similar to most fee programs, it is recommended that an automatic annual inflation index is integrated into the fee program so the fee level is adjusted for inflation each year and avoids falling behind implementation costs.

As noted above, fluctuations in the level of development are likely each year and it is important for the RCHCA to track revenue levels to make sure sufficient revenues are generated on average over time. The RCHCA could use its reserve balances in cases where fee revenues drop below the average required (for example, during economic or development downturns) though this is not a sustainable approach over the long term and any ongoing under-provision of fee revenues would require a fee update. Mitigation fee programs are typically expected to do periodic fee program updates (typically every 5 to 8 years) to confirm or refine the fee program, though more frequent updates are undertaken when there is a significant change in circumstances.

Item Total
Fee-Funding Required $1,592,276
Development Forecast scenarios
Annual Development Forecast (acres) 1,772
Mitigation Fee per Acre $900
Source: Economic & Planning Systems, Inc.
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STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 10 Technical Analysis Step 6. Per Acre Mitigation Fee Basis
Recent updates to the Mitigation Fee Act due to the passage of AB 602 require that new and updated fee programs consider whether it is possible and appropriate to adopt fees on new residential development on a per square foot basis. For habitat mitigation fees, a per acre of development approach is typically the preferred approach. For these fees, the scale of land development provides a more direct and proportional connection/ nexus to impacts (on habitat) while also ensuring smaller developments pay lower fees. The square footage of new residential development on the land can vary substantially even for the same amount of land development, making it a less strong basis for the nexus and fee collection.
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STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 11 Legal Context and Nexus Findings

3. Legal Context and Nexus Findings
This chapter provides the legal context for this fee update and describes the nexus findings required to support the update to the SKR mitigation fee under the Mitigation Fee Act.

Legal Context
Riverside County’s Ordinance No. 663 Section 12 states that: “The Board of Supervisors may periodically review and cause an adjustment to be made to the Mitigation Fee. By amendment to this ordinance, the fee may be increased or decreased to reflect changes in estimated costs for the development, preparation and implementation of a Habitat Conservation Plan. The adjustment in the fee may also reflect changes in estimated revenues received pursuant to this ordinance, as well as the availability or lack thereof of other funds with which to prepare and implement the Habitat Conservation Plan”.

The SKR mitigation fee can be adjusted under the Mitigation Fee Act (MFA) through the development of a nexus study. Recent court cases (Sheetz case) have also concluded that mitigation fees must be consistent with the US Supreme Court’s Nollan and Dolan tests. Overall, the nexus study must describe the need for and use of the fee revenues as well as the relationships between the fee amount and fee need/ use. The nexus study/ findings should also establish the “essential nexus” under the US Supreme Court’s Nollan test and the “rough proportionality” required under the US Supreme Court’s Dolan test.

Mitigation Fee Act
Mitigation fees are utilized in California to finance public facilities necessary to mitigate impacts stemming from new development. In 1987, the California Legislature adopted the Mitigation Fee Act to provide a framework for the application and administration of such fees. Current prevailing practice among the majority of approved and permitted regional Habitat Conservation Plans is that any habitat mitigation fees are to be adopted by the relevant jurisdictions consistent with the Mitigation Fee Act. The adoption of fees under the Mitigation Fee Act includes a number of auditing and reporting requirements.

The Mitigation Fee Act, defined in California Government Code Sections 66000 to 66025, requires all public agencies to document five findings when establishing or increasing a fee as a condition for new development.

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STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 12 Legal Context and Nexus Findings This section describes how the proposed increase in the fee is based on the appropriate nexus between new development and the imposition of a mitigation fee and satisfies the five statutory findings required by the Mitigation Fee Act.

The nexus findings also indicate the essential nexus and rough proportionality as required under Nollan/ Dolan. These nexus findings are summarized below and supported by the technical analysis in Chapter 2.

Purpose of Fee
Identify the purpose of the fee.

The purpose of the SKR mitigation fee is to contribute to the funding required to implement the SKR Plan and, as a result, help maintain the incidental take permits for new private and public development in the SKR Plan Area under the federal and State Endangered Species Acts. Maintaining the incidental take permit is necessary to allow for future development, and without the development community paying for the cost of the SKR HCP, individual applicants would need to apply independently for development approval under federal and State law if the project impacts a threatened or endangered species. The federal Endangered Species Act specifically requires that the applicant for incidental take permit “ensure that adequate funding for the plan will be provided.” In addition, the Mitigation Fee helps provide the regional benefit of streamlined economic development in the SKR Plan Area as well as the management of the contiguous open spaces that serve as a community amenity.

Use of Fee Revenues
Identify the use to which the fee is to be put.

The SKR HCP is the public document that outlines the actions required as a whole and the particular set of actions required by the local permittees (and RCHCA as their agent) to obtain incidental take permits—associated with State and federal Endangered Species Act requirements—for new public and private development in the SKR Plan Area. The actions required by the SKR Plan remain the same.

Failure to meet the requirements of the SKR HCP will result in an inability to obtain or maintain incidental take permits through the SKR HCP, which would require future development to secure individual take authorization if the project impacts the SKR.

Revenues from the SKR Mitigation Fee will be used, in conjunction with other sources of revenue, to fund the reserve management actions identified as the responsibility of local permittees in the SKR HCP. The specific cost components of these actions are summarized in Chapter 2 and based on published budget documents.
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STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 13 Legal Context and Nexus Findings Relationship
Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.

The implementation of the MSHCP, and the mitigation fee as a fundamental part of it, will benefit all new development by mitigating their collective impacts on the protected Stephens’ kangaroo rat species and associated habitat. All new public and private development in the Plan Area will affect habitat and species either directly, indirectly, or as a cumulative effect. All new development in the Plan Area will also benefit from the incidental take permits obtained through the SKR HCP and via the use of the mitigation fee revenues.

Need
Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.

Without new development, no SKR HCP would be necessary and no further habitat conservation would be required under the federal and State Endangered Species Acts. To allow for any future development under the Plan, the SKR HCP must be fully funded. New development in the Plan Area, as noted above, will directly, indirectly, or cumulatively affect the species and its habitat in Riverside County. Because of this, development of the SKR HCP was undertaken to provide an approach to benefit future development in the Plan Area. The requirements of the SKR HCP are a direct result of the mitigation that is engendered by all new development in the Plan Area under the pertinent environmental regulations. Meeting the requirements of the SKR HCP is necessary to obtain the necessary federal authorization to develop within the Plan Area. Together, purpose, need, and relationship findings also indicate a clear “essential nexus” under the Nollan test.

Proportionality
Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.

The SKR HCP includes detailed conservation requirements based on the scientific evaluations that form the basis of the SKR HCP. Based on these evaluations, local permittee conservation responsibilities were identified. The mitigation fee provides funding towards the fulfillment of the local permittee conservation requirements. After subtracting out non-fee funding sources from the implementation costs, the remaining implementation costs are all allocated to new development and allocated proportionately between new development on an acreage basis. As such, the mitigation fee calculations (as laid out in Chapter 2) are 821
STEPHENS’ KANGAROO RAT HABITAT CONSERVATION PLAN NEXUS STUDY Economic & Planning Systems, Inc. 14 Legal Context and Nexus Findings carefully calibrated to fund only the proportionate share of costs attributable to the new development on which the fee is imposed and to allocate the fee levels proportionally across all new development. This proportionality finding also establishes the required “rough proportionality” under the Dolan test. 822
ATTACHMENT 4

NOTICE OF PUBLIC HEARING
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NOTICE of PUBLIC HEARING
This may affect your property. Please read:

Notice is hereby given that the City Council of the City of Perris will hold a Public Hearing on the following item(s):

APPLICANT: City of Perris
101 N. D Street
Perris, CA 92570
LOCATION: City-wide
PROJECT: Ordinance amendment adopting the
new SKR (Stephen’s Kangaroo Rate Mitigation Fee)
schedule effective January 1, 2027 to include an
annual automatic Consumer Price adjustment for the
Los Angeles-Riverside-Orange County region, or a
successor index.

ENVIRONMENTAL DETERMINATION:

Pursuant to CEQA Guidelines, Section 15061(b)(1),
15061(b)(3), 15273, and 15378(b)(4), there is no
possibility that its adoption of the above-mentioned
items would have a significant effect upon the
environment, because it involves the creation of a
government funding mechanism which does not
involve any commitment to a specific project which
may result in a potentially significant impact upon
the environment.

PUBLIC HEARINGS: The City Council is
scheduled to consider the above-mentioned items at
the regularly scheduled hearing on Tuesday,
October 13, 2026, at 6:30 PM.

Any person affected or concerned by the abovementioned items may submit written comments to the Office of the City Clerk before the City Council
hearing. At the time of the public hearing, any person
may appear and be heard in support of or opposition
to the above-mentioned items. The City Council, at
the hearing or during deliberations, could approve an
alternative proposal for the above-mentioned items,
including any changes to the proposal.

Any person challenging the above-mentioned items
in court, may be limited to raising only those issues
identified at the public hearing described in this
notice or in writing to the City Council prior to the
public hearing.

CITY COUNCIL

PUBLIC HEARING

CITY COUNCIL CHAMBERS
101 NORTH “D” STREET
PERRIS, CA 92570
Date & Time: October 13, 2026 – 6:30 p.m.

Contact: Gustavo Lua,
Counter Services Supervisor
Phone: (951) 943-5003
Email: [email protected]
Si necesita un interprete por favor llamenos al (951) 943- 5003
All information and data relating to the above-mentioned items, including any proposed updated fees, are available for review at the Development Services Department, Counter Services
Division, located at 135 North D Street, Perris.
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