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CITY COUNCIL STAFF REPORT
COMMUNITY DEVELOPMENT DEPARTMENT
October 28, 2021
Eric Ceja, Deputy Director of Development Services/Economic
Development
Consideration of Ordinance No. 1370 amending Palm Desert Municipal
Code Chapter 3.44 "Transportation Uniform Mitigation Fee" (TUMF)
reflecting changes to the collection of fees
By Minute Motion, pass Ordinance No. 1370 to second reading for consideration to amend Palm
Desert Municipal Code Chapter 3.44.
Backqround Analvsis
In 1987, the CVAG adopted and implemented the TUMF as a means to finance and support
regional transportation projects throughout the Coachella Valley. Since that time, member
agencies, such as the City of Palm Desert (the City), have participated in the review and
periodic maintenance of the ordinance, as well as the collection and remittance of the fee to the
CVAG.
The TUMF was updated in 2006 and in 2018 CVAG Executive Committee adopted a nexus
study increasing fees and remove specific land-use exemptions. Historically, for single-family
detached homes, the TUMF fee has been as follows:
Time Period SFD Rate
1989-2006 $794.31
2007-2018 $1,837.44
2018-Present $2,310
This year, the CVAG Executive Committee approved an inflationary adjustment to the fee. This
fee increase goes into effect on January 1, 2022. Each adjustment to the fee requires additional
action by the City to adopt a resolution reflecting the fee change. However, the City's can
amend its current ordinance to allow for the automatic adjustment of fees as approved by the
CVAG Executive Committee. This eliminates the need for the City Council to amend the fee
every few years.
Proiect Description
The amendment to the PDMC are required to ensure consistency with the approved TUMF
Ordinance adopted by the CVAG Executive Committee. Changes to the ordinance include
revisions to the following:
1. Adds new definitions to "Fee Study,": Impact Fee Schedule," and "Mitigation Fee AcY'.
October 28, 2021 — Staff Report
TUMF Ordinance Amendments
Page 2 of 2
2. Adds language for how the fee is established (34.44.030) and the procedures for
updating the fee (34.44.010).
The other sections of the TUMF Ordinance remain unchanged and, as such, are not discussed
in this report.
Analvsis
In 1987, CVAG adopted the TUMF Ordinance as a means to fund regional transportation
projects throughout the Coachella Valley. The City, as a member agency of the CVAG, did
adopt the TUMF Ordinance as part of the PDMC in 1989 by adopting Ordinance No. 573.
Periodic review and amendments of the ordinance are required to address societal and policy
changes with the Coachella Valley. As a member agency, the City is obligated to enact and
impose rules in accordance with the agency, including updates and amendments to the
ordinance. The changes to the ordinance are non-substantive for the City.
TUMF was last updated in 2006 and 2018. Periodic updates to the ordinance are necessary and
voted on by the CVAG Executive Committee. The City is a pass through agency for the TUMF.
The City collects TUMF prior to issuance of a building permit and remits those fees to CVAG.
Should the City fail to adopt changes in the ordinance as adopted by CVAG the City will
continue to collect the existing fees and pay the difference from the City's General Fund.
Findinqs of Approval
There is no impact to the General Fund with this request.
Findings can be made in support of the Ordinance amendments to the TUMF Ordinance in
accordance with the PDMC. Findings in support of this project are contained in City Council
Ordinance No. 1370, which is attached to this staff report.
LEGAL REVIEW
N/A
DEPT. REVIEW
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Ro�ert W. Hargreaves Martin Alvarez, Director of
Ciry Aftorney DEvc^iOpfll^ciii Services
City Manager L. Todd Hileman: L. TOGiGi
ATTACHMENTS:
1. TUMF Amendment Ordinance
2. Public Hearing Notice
WiStaff Reports - Shared 2\Staff Reports 10-28-202114 - Norma - 10-28-2021\13 TUMF
FINANCIAL REVIEW ASSISTANT CITY
MANAGER
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Janet Moore Andy Firestine
Director of Finance Assistant City Manager
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ORDINANCE NO. 1370
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AMENDING CHAPTER 3.44 OF THE PALM
DESERT MUNICIPAL CODE PERTAINING TO THE COLLECTION
OF TRANSPORTATION UNIFORM MITIGATION FEES
WHEREAS, the City of Palm Desert, California, ("City") is a member agency of the
Coachella Valley Association of Governments (“CVAG”), a joint powers agency consisting
of the County of Riverside ("County"), the Agua Caliente Band of Cahuilla Indians, the
Cabazon Band of Mission Indians, the Torres Martinez Desert Cahuilla Indians, the City of
Blythe, and the nine cities (Desert Hot Springs, Palm Springs Cathedral City, Rancho
Mirage, Palm Desert, Indian Wells, La Quinta, Indio and Coachella) situated in the
Coachella Valley (collectively, "Member Agencies"); and
WHEREAS, acting in concert, the Member Agencies developed a plan whereby the
shortfall in funds needed to enlarge the capacity of the Regional System of Highways and
Arterials within CVAG's jurisdiction (the “Regional System”) could be made up in part by a
Transportation Uniform Mitigation Fee ("TUMF") imposed on future residential, commercial
and industrial development within the jurisdiction; and
WHEREAS, as a CVAG Member Agency, the City participated in the preparation of
the 1987 Coachella Valley Area Transportation Study ("1987 Transportation Study")
prepared pursuant to the Mitigation Fee Act (Government Code section 66000 et seq.) and
based on the 1987 Transportation Study, the City adopted and implemented CVAG's model
TUMF Ordinance as Palm Desert Municipal Code (PDMC) Chapter 3.44; and
WHEREAS, CVAG commissioned Michael Baker International, Inc. to prepare an
updated TUMF study entitled "Transportation Uniform Mitigation Fee (TUMF) 2018 Fee
Schedule Update, Nexus Study Report," and dated March 2018 (“2018 Nexus Study") to
establish updated TUMF levels and program revenue collection targets, which was
approved by the CVAG Executive Committee on April 30, 2018; and
WHEREAS, the 2018 Nexus Study revealed the need to revise certain provisions of
the model TUMF Ordinance to reflect changes in the Mitigation Fee Act which governs the
adoption and implementation of development impact fees and to reflect the findings of the
2018 Nexus Study; and
WHEREAS, by notice duly given and posted, on October 16, 2021, the City Council
conducted a public hearing to consider adoption of this ordinance; and
WHEREAS, at the time and place set for the hearing, the City Council duly
considered the data and information provided by CVAG, City staff and the public relative to
the TUMF and all other comments, whether written or oral, submitted prior to the conclusion
of the hearing; and
WHEREAS, the City Council wishes to accurately collect TUMF fees along with the
other participating jurisdictions within the Coachella Valley, as requested by the CVAG
General Assembly.
ORDINANCE NO. 1370
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm
Desert, California, as follows:
Section 1. REVISED CHAPTER 3.44 "TRANSPORTATION UNIFORM
MITIGATION FEE"
Palm Desert Municipal Code Chapter 3.44, "Transportation Uniform Mitigation
Fee" is hereby amended to read as follows:
Chapter 3.44
Transportation Uniform Mitigation Fee
3.44.010 Purpose, use and findings.
The City Council finds and determines as follows:
A. The City is a Member Agency of the Coachella Valley Association of
Governments (“CVAG”), a joint powers agency consisting of public agencies situated
in the Coachella Valley (collectively, "Member Agencies").
B. Acting in concert, the Member Agencies developed a plan whereby the
shortfall in funds needed to enlarge the capacity of the Regional System of
Highways and Arterials within CVAG's jurisdiction (the “Regional System”) could be
made up in part by a Transportation Uniform Mitigation Fee ("TUMF") imposed on
future residential, commercial and industrial development within the jurisdiction.
C. That CVAG commissioned the preparation of various studies ("Fee Studies")
which evaluate population and employment growth, future transportation needs and
the availability of traditional transportation funding sources to establish updated
TUMF levels and program revenue collection targets.
D. That the Fee Studies, as periodically updated, make it possible to determine
a reasonable relationship between the cumulative regional impacts of new land
development projects in the Coachella Valley on the Regional System and the need
to mitigate these transportation impacts using funds levied through the TUMF
program.
E. That the Fee Studies, as periodically updated, establish the purposes of the
TUMF, which may be summarized as a uniform development impact fee to help fund
construction of the Regional System needed to accommodate growth in the
Coachella Valley to the year 2030.
F. That the Fee Studies, as periodically updated, establish that the TUMF
proceeds will be used to help pay for the engineering, construction and acquisition of
the Regional System improvements identified therein. Such improvements are
necessary for the safety, health and welfare of the residential and non-residential
users of the development projects on which the TUMF will be levied.
ORDINANCE NO. 1370
G. That the Fee Studies, as periodically updated, establish a reasonable and
rational relationship between the use of the TUMF proceeds and the type of
development projects on which the TUMF is imposed.
H. That the Fee Studies, as periodically updated, establish the reasonable
relationship between the impact of new development and the need for the TUMF.
I. That the TUMF program revenues to be generated by new development will
not exceed the total fair share of these costs.
J. That the projects and methodology identified in the Fee Studies, as
periodically updated, for the collection of fees is consistent with the goals, policies,
objectives and implementation measures of the City’s General Plan.
K. That the TUMF program complies with the provisions of the Mitigation Fee
Act.
3.44.020 Definitions
For the purposes of this chapter, the following words and phrases shall have the
meanings respectively ascribed to them as follows:
“Change of use” means any change in the use of an existing building that results in
the increase of vehicular trips.
“Development” means any activity which requires discretionary or ministerial action
by the City resulting in the issuance of grading, building, plumbing, mechanical or
electrical permits, or certificates of occupancy issued by the City to construct, or
change the use of, a building or property. Where “development” applies to an
enlargement of an existing building, or a change of use of an existing building that
results in increased vehicle trips, the average weekday trips shall be only the
additional trips in excess of those associated with the existing use.
"Fee Study" means the studies prepared by CVAG and adopted by the City Council,
which supports the fee established by this chapter, and includes all the underlying
reports and documents referenced therein.
"Impact Fee Schedule" means the schedule of development impact fees approved
by resolution of the City Council.
"Mitigation Fee Act" means the law set forth in the California Government Code
(Government Code Section 66000 et seq.) that establishes the criteria for
establishing a fee as a condition of approval of a development project.
"Regional System" means the regional system of roads, streets and highways
identified by CVAG in its 2016 Transportation Project Prioritization Study (TPPS) to
accommodate growth in the Coachella Valley to the year 2040. Only those projects
scoring above 7.5 points in the TPPS are included for TUMF consideration.
ORDINANCE NO. 1370
"Transportation Mitigation Trust Fund" means the fund established pursuant to this
chapter.
“TUMF" means the Transportation Uniform Mitigation Fee established by this
chapter.
3.44.030 Transportation Uniform Mitigation Fee Established
A. There is established a Transportation Uniform Mitigation Fee ("TUMF"), which
shall apply to new development yet to receive final discretionary approval and/or
issuance of a building permit or other development right and to any reconstruction or
new use of existing buildings that results in change of use and generates additional
vehicular trips.
B. The facilities to be funded by the TUMF are detailed in the Fee Study, which
is on file with the City's Public Works Department.
C. The TUMF is in addition to the requirements imposed by other City laws,
policies or regulations relating to the construction or the financing of the construction
of public improvements within subdivisions or developments.
D. If the amount of the recommended mitigation fee is amended by CVAG
pursuant to CVAG's annual review, the council shall amend its fee amount in
accord or in an amount greater by providing authorization to the Director of
Development Services to amend the City’s fee schedule accordingly.
3.44.040 Fund Established
A. There is established a Transportation Mitigation Trust Fund ("Trust Fund")
into which TUMF proceeds shall be deposited.
B. TUMF proceeds shall be imposed and collected by the City and shall be
transmitted to CVAG to be placed in the Trust Fund. All interest or other earnings of
the Trust Fund shall be credited to the Trust Fund.
C. CVAG shall administer the Trust Fund in accordance with the Mitigation Fee
Act.
3.44.050 Calculation and Collection of the TUMF
A. The method of calculating the TUMF shall be described in CVAG's
Transportation Uniform Mitigation Fee Handbook, a copy of which is on file with the
City's Development Services Department.
B. The amount of the fees due shall be the amount set forth in the applicable
Impact Fee Schedule in effect at the time each fee is due. The TUMF shall be
collected pursuant to the City's established procedures for the collection of
development impact fees.
ORDINANCE NO. 1370
3.44.060 Use Restrictions
TUMF proceeds shall be solely used for the engineering, construction and
acquisition of the Regional System improvements identified in the Fee Study and
any other purpose consistent with this chapter. TUMF proceeds shall not be used for
Regional System maintenance.
3.44.070 Exemptions
A. The following developments are exempted from payment of the fee required
by this chapter:
1. Low and lower-income residential housing, including single-family
homes, apartments and mobile homes built for those whose income is no more than
eighty percent of the median income in the San Bernardino-Riverside Standard
Metropolitan Statistical Area and as determined and approved by the City Council or
its designee. The sales or rental price shall not exceed the affordability criteria as
established under HUD Section 8 guidelines.
B. Credit against the TUMF shall be given where a developer improves streets
included within the Regional System beyond the City's requirements established for
on-site and off-site improvements imposed upon projects. To receive a credit, the
developer shall obtain in advance an agreement with CVAG pursuant to CVAG's
rules and regulations. That credit shall be an amount equal to the actual engineering
and construction costs incurred at the time of the development to the extent that
CVAG has included those costs in its estimated cost of constructing the Regional
System.
3.44.070 Appeal Process
A. Any developer, who, because of the nature or type of uses proposed for a
development project, contends that application of the TUMF is unconstitutional or
unrelated to mitigation of the burdens of the development, may file a written appeal
with the City within ninety days after imposition of the TUMF as a condition of
approval or as otherwise provided by the Mitigation Fee Act.
B. The appeal shall be heard by the CVAG Executive Committee in accordance
with CVAG's established policies and procedures for conducting such matters. The
decision of the Executive Committee shall be final.
3.44.080 Administrative Fee
A. The City may impose an administrative fee in amount computed to cover the
average cost to the City of processing the TUMF. The City shall establish such fee
in accordance with the City's procedures for establishing service-related fees.
B. The administrative fee authorized by this section shall be in addition to the fee
imposed under Section 3.44.030. The administrative fee, when collected, shall be
retained by the City to recover its costs.
ORDINANCE NO. 1370
SECTION 2. Severability. The City Council declares that, should any provision,
section, paragraph, sentence or word of this ordinance be rendered or declared invalid by
any final court action in a court of competent jurisdiction or by reason of any preemptive
legislation, the remaining provisions, sections, paragraphs, sentences or words of this
ordinance as hereby adopted shall remain in full force and effect. If any section, subsection,
subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is
for any reason held to be unconstitutional or invalid or ineffective by any court of competent
jurisdiction, such decision shall not affect the validity or effectiveness of the remaining
portions of this ordinance or any part thereof. The City Council hereby declares that it would
have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase
thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs,
sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.
SECTION 3. Publication. The City Clerk of the City of Palm Desert, California, is
hereby directed to publish this ordinance in The Desert Sun, a newspaper of general
circulation, published and circulated in the City of Palm Desert, California, and shall be in full
force and in effect thirty (30) days after its adoption.
ADOPTED at a regular meeting of the Palm Desert City Council, held on this 28th
day of October, 2021, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
KATHLEEN KELLY, MAYOR
ATTEST:
_________________________________
NORMA I ALLEY, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
CITY OF PALM DESERT
LEGAL NOTICE
NOTICE OF INTENT OF THE PALM DESERT CITY COUNCIL TO ADOPT AN ORDINANCE
AMENDING CHAPTER 3.44 “TRANSPORTATION UNIFORM MITIGATION FEE” (TUMF) TO
REFLECT CHANGES IN THE ORDINANCE AND FEE AS ADOPTED BY THE COACHELLA
VALLEY ASSOCIATION OF GOVERNMENTS EXECUTIVE COMMITTEE
The City of Palm Desert (City), in its capacity as a Member Agency to the Coachella Valley
Association of Governments (CVAG), will consider amendments to the Palm Desert Municipal
Code (PDMC) to reflect changes in the Transportation Uniform Mitigation Fee. The fee, which
was established in 1987, requires period amendments and maintenance of the ordinance. The
changes proposed were adopted by the Executive Committee of the CVAG, and the City Council
of Palm Desert must hold a hearing to amend the PDMC.
Code Amendment Description: Changes to the ordinance reflect changes to the definitions
and match the City’s TUMF ordinance to CVAGs.
Recommendation: Staff recommends that the City Council adopt the amended ordinance to
match the ordinance approved by the Executive Committee of the CVAG.
Public Hearing: The public hearing will be held before the City Council virtually via Zoom on
October 28, 2021, at 4:00 p.m.
Comment Period: Based on the time limits defined by the California Environmental Quality Act
(CEQA), you should send your response at the earliest possible date. The public comment period
for this project is from October 16, 2021, to October 28, 2021.
Public Review: The amended ordinance is available for public review daily at City Hall. Please
submit written comments to the Planning/Land Development Department. If any group challenges
the action in court, the issues raised may be limited to only those issues raised at the public
hearing described in this notice or in written correspondence at, or prior to, the City Council
hearing. All comments and any questions should be directed to:
Eric Ceja, Deputy Director of Development Services
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760) 346-0611
eceja@cityofpalmdesert.org
PUBLISH: DESERT SUN NORMA I. ALLEY, MMC, CITY CLERK
OCTOBER 16, 2021 CITY OF PALM DESERT, CALIFORNIA