ITEM 5. 1
CITY MANAGER' S REPORT
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
ITEM: PUBLIC HEARING ( PUBLISHED NOTICE) TO
CONSIDER THE 2023 SJMSCP DEVELOPMENT FEE
ANNUALAD) USTMENT
RECOMMENDATION: Council to Consider the Following:
1. Hold a Public Hearing; and
2. Adopt a Resolution Approving an Annual
Adjustment to the San Joaquin County MultiSpecies Habitat Conservation and Open Space Plan ( S) MSCP) Development Fee for 2023
SUMMARY:
On August 25, 2022, the San Joaquin Council of Governments ( SJCOG) Board approved the annual adjustment to the San Joaquin County Multi- Species Habitat Conservation and Open Space Plan ( SJMSCP) development fees, and is now requesting each participating jurisdiction to adopt the annual adjustment to become effective on January 1, 2023.
The final calculation of the 2023 SJMSCP development fees shows an approximate overall decrease of 1. 6% in the most commonly impacted categories of Agricultural and Natural habitat classifications compared to 2022. The decrease is due primarily to a reduction in the land acquisition component ( Category A) for agricultural land price values of comparable sales even though there was a rise in the reported Consumer Price Index ( CPI) for Categories B ( Assessment and Enhancement) and C Land Management and Administration). The total of these 3 categories equates to the final amount of the development fee.
The following table shows the habitat categories, the current 2022 fees, and proposed 2023 fee adjustments ( per acre).
YEAR 2019 2020 2021 2p22
2023
Proposed)
Multi- purpose 6, 700 6, 412 8, 682 9, 781 9, 629
Agriculture/ Natural $ 13, 399 12, 822 17, 363 19, 561 19, 255 Vernal Pool
rasslands
54, 576 52, 833 71, 544 80, 453 75, 320
Vernal Pool
wetted
101, 033 100, 788 161, 286 174, 040 176, 878
CITY MANAGERS REPORT PAGE 2
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
2023 SJMSCP DEVELOPMENT FEES
Staff recommends adoption of the attached resolution approving an annual adjustment to the San Joaquin County Multi- Species Habitat Conservation and Open Space Plan ( SJMSCP) development fees for 2023.
BACKGROUND:
On November 6, 2001, the City Council adopted Ordinance No. 01- 194, establishing the SJMSCP. The plan established a procedure to mitigate the impacts of new development on undeveloped land within the Cities of Lathrop, Escalon, Tracy, Ripon, Manteca, Lodi, Stockton, and San Joaquin County. Each City and the County adopted the SJMSCP and the recommended fee schedule at that time. A Habitat Conservation Map ( Attachment 2) identifies those areas within the City of Lathrop that are subject to a specific habitat fee category. Since its adoption, the developer paid SJMSCP fees have been adjusted annually to be effective on January 15t of each year.
The development fees were calculated using a formula which is adjusted annually Fee = Category A ( acquisition) + Category B ( assessment & enhancement) + Category C ( land management & administration)]. Each component of the formula is adjusted using a specific mechanism which relates to the individual component in the fees.
Projects which participate under the SJMSCP benefit from a pre- determined streamlined processing of the project rather than navigating a very long and cumbersome regulatory process through the state and federal permitting agencies.
By participating, the project can choose a number of ways to provide mitigation for the impacts of the project:
1. Pay a fee;
2. Redesign the project to avoid/ minimize impacts;
3. Provide land in lieu of the SJMSCP fee which the project will negotiate the easement/ fee title costs; or
4. Any combination of the above options.
Alternatively, the project proponent may choose to not participate in the SJMSCP and fulfill mitigation requirements on their own with state and federal permitting agencies.
It' s important to note that development projects in Lathrop such as River Islands, Central Lathrop, South Lathrop and Gateway have taken advantage of the benefit this program.
CITY MANAGERS REPORT PAGE 3
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
2023 S) MSCP DEVELOPMENT FEES
RECOMMENDATION:
Staff recommends that the City Council consider all information provided and submitted, take and consider all public testimony and, if determined to be appropriate, adopt a resolution approving the annual adjustment to the San Joaquin County Multi- Species Habitat Conservation and Open Space Plan development fees for 2023.
FISCAL IMPACT:
The fee adoption has no fiscal impact to the City. Developers may participate in the SJMSCP plan or opt out and fulfill mitigation requirements with state and federal permitting agencies.
ATTACHMENT:
l. Resolution to approve the 2023 San Joaquin County Multi- Species Habitat Conservation and Open Space Plan ( SJMSCP) development fee.
2. S] MSCP Habitat Conservation Map
3. 2023 Habitat Fee Table
CITY MANAGERS REPORT PAGE 4
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
2023 SJMSCP DEVELOPMENT FEES
APPROVALS:
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Ric ' Caguiat Date
A istant Co munity Development Director
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M rk M ' s er Date
Commun ty velopment Director
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Cari Ja Date
Finance ir ctor
Zy- Zo ZL
Salvador Navarrete Date
City Attorney
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St en J. Salvatore Date
City Manager
RESOLUTION NO. 22 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
APPROVING THE ANNUAL ADJUSTMENT TO THE SAN JOAQUIN COUNTY
MULTI- SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN SJMSCP) DEVELOPMENT FEE FOR 2023
WHEREAS, the City Council of the City of Lathrop adopted Ordinance No. 01- 194 establishing the authority for collection of a Development Fee for the San Joaquin County Multi- Species Habitat Conservation and Open Space Plan ( SJMSCP) for all new development pursuant to the SJMSCP within the City of Lathrop; and WHEREAS, a Fee Study" dated July 1, 2001 was prepared which analyzed and identifies the costs, funding, and cost- benefit of the San Joaquin County MultiSpecies Habitat Conservation and Open Space Plan; and WHEREAS, the purpose of the SJMSCP development fee is to finance the goals and objectives of the SJMSCP that include, but are not limited to preserve land acquisition, preserve enhancement, land management, and administration that compensate for such lands lost as a result of future development in the City of Lathrop and in San Joaquin County; and
WHEREAS, after considering the fee study and the testimony received at the public hearing, the Lathrop City Council approved said report; and further found that the future development in the City of Lathrop will need to compensate cumulative impacts to threatened, endangered, rare and unlisted SJMSCP covered species and other wildlife and compensation for some non- wildlife related impacts to recreation, agriculture, scenic values and other beneficial open space uses; and WHEREAS, an " Updated Fee Study" was prepared in 2006, 2011, 2016 and 2020 which analyzed and identified the costs and funding of the SJMSCP; and WHEREAS, the SJMSCP development fees are divided into three categories:
Category A - Acquisition; Category B - Enhancement; and Category C - Land Management/ Administration; and
WHEREAS, the SJMSCP development fees for the different habitat types is shown on Attachment 3 of the staff report; and
WHEREAS, to ensure that the SJMSCP development fees keep pace with inflation, annual adjustments are made to the fees based on the method previously adopted by the Lathrop City Council; and
WHEREAS, the method of annual adjustments was modified in 2011, 2016, and 2020; and
Resolution No. 22-
WHEREAS, the 2020 adjustment resulted in a minor change to category " A" with an adjustment to the easement to fee title percentage used in the fee model and category C" with pivoting to a more robust diversified endowment investment for higher return on investment.
NOW, THEREFORE, IT IS HEREBY RESOLVED, by the City Council of the City of Lathrop, as follows:
1. The City Council finds and declares that the purposes and uses of the development fee, and the determination of the reasonable relationship between the fees' uses and the type of development project on which the fees are imposed, are all established in Ordinance No. 01- 194, and remain valid, and the City Council therefore adopts such determinations.
2. The 2023 development fee for the three habitat types - natural land and agricultural lands, vernal pool habitat, and multi- purpose open space conversion, shall be as set forth in Attachment 3 of the staff report, incorporated by reference herein.
3. The fee provided in this resolution shall be effective on January 1, 2023 - December 31, 2023.
Resolution No. 22-
The foregoing resolution was passed and adopted this 10th day of October 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salva or Navarrete, City Attorney Resolution No. 22-
ATTACHMENT " 2 "
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ATTACHMENT " 3 "
SJCOG, Inc.
5 f ast 1 ber \ erltie • St i l. ton, C. A« ( 20<>) 3- Oh0O • f: A\ (_'[ l))? 35- O} 3ti San Joaquin County Multi- Species Habitat Conservation £ Open Space Plan (SJMSCP)
E. .,
her`''`` k" u"' 2023 U dated Habitat Fees*
R
Nidee` r"''
Habitat Type Fee Per Acre VICE CHAIR
i"`" g`"," Multi-Pur ose O en S ace 9, 629
EXECU? IVE CIRE':'
v,en, h,. A,,,,_, Natural 19, 25 5
Es° Agriculture 19 255
ESCALOfa
r" R° Vernal Pool - u lands 75, 320
LOU'.
TE' Vernal Pool - wetted 176, 878
RIPOI 1,
STOCKTOPJ l: ficcti c Januar I,? 023— Ucccmber i l. 202 TRACY,
ANC
THECOUNTY=
SAN JOAQUIid 2023 Endowment Fees with In-lieu Land**
Enhaircement
Land TOTAL PER
Type of Preserve Management ACRE
Cost/ ucre
Cost/ acre ENDOWMENT
Agricultural Habitat Lands 769. 00 769. 97 6, 39
Natural Lands 5, 769. 00 769. 97 6, 539
Vernal Pool Habitat
6' ernal Pool Grasslands 14, 491. 00 1, 901. 76 16, 393 6' ernal Pool Wetted 117, 102. 00 1, 864. 45 118, 966
Effective January 1, 2023— December 31, 2023 in lieu of fees to be used as the endowment for the dedicated land preserves( Category B+ C) based on impacted acres.
VELB Mitigation
A special fee category shall apply when removal of the Valley Elderberry Long- horned Beatle VELB) habitat of elderberry shrubs occurs. The fee shall be paid to SJCOG, [ nc. or a VELB mitigation bank approved by the Permitting Agencies. The current fee, as established in the VELB Conservation Fund Account managed by the Center for Natural Lands Management, and approved by the USFWS, is $ 1, 800 per VELB Unit( one unit= one stem over l" in diameter at ground level which is removed). Fees shall be established by the JPA during preconstruction surveys( i. e., counts of stems to be removed with and without exit holes shall be completed during preconstruction surveys) and shall be paid to the JPA prior to gound disturbance or stem removal, whichever comes first.