ITEM 5.1
CITY MANAGER'S REPORT
NOVEMBER 10, 2025 CITY COUNCIL REGULAR MEETING
ITEM: PUBLIC HEARING (PUBLISHED NOTICE) TO
CONSIDER THE 2026 SJMSCP DEVELOPMENT FEE
ANNUAL ADJUSTMENT
RECOMMENDATION: Council to Consider the Following
• Hold a Public Hearing; an‹
2. Adopt a Resolution to Approve an Annual
Adjustment to the San Joaquin County Multi-
Species Habitat Conservation and Open Space
Plan (SJMSCP) Development Fee for 2026
SUMMARY:
On September 25, 2025, the San Joaquin Council of Governments (SJCOG) Board approved the five-year financial model update and 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, 2026.
The final calculation of the 2026 SJMSCP development fees shows an approximate overall increase of 8.3% in the most commonly impacted categories of Agricultural and Natural habitat classifications compared to 2025. The increase is due primarily to a rise in the land acquisition component (Category A) for agricultural land price values of comparable sales, and updating of current costs for land management and enhancement activities for on-going preserves (Category B).
The following table shows the habitat categories, the current 2025 fees, and proposed 2026 fee adjustments (per acre).
YEAR 2021 2022 2023 2024 2025 2026
(Proposed)
Multi- $8,682 $9,781 $9,629 $8,918 $8,246 $8,935
purpose
Agriculture/ $19,561 $16,492 $17,868
Natural $17,363 $19,255 $17,833
Vernal Pool $80,453 $69,408 $65,490 $72,662
(grasslands) $71,544 $75,320
Vernal Pool $176,878 $177,281 $183,894
(wetted) $161,286 $174,040 $177,724
CITY MANAGERS REPORT PAGE 2
NOVEMBER 10, 2025 CITY COUNCIL REGULAR MEETING
2026 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 2026.
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, to a specific habitat fee category. Since its adoption, the developer paid SJMSCP fees have been adjusted annually to be effective on January 1st 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. This year, SJCOG also facilitated the required five-year financial update to the SJMSCP fee categories.
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
NOVEMBER 10, 2025 CITY COUNCIL REGULAR MEETING
2026 SJMSCP 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 2026.
FISCAL IMPACT:
The fee adoption has no fiscal impact to the City. Developers may participate in the SIMSCP plan or opt out and fulfill mitigation requirements with state and federal permitting agencies.
ATTACHMENT:
1. Resolution to approve the 2026 San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) development fee.
2. SJMSCP Habitat Conservation Map
3. 2026 Habitat Fee Table
CITY MANAGERS REPORT PAGE 4
NOVEMBER 10, 2025 CITY COUNCIL REGULAR MEETING
2026 SJMSCP DEVELOPMENT FEES
APPROVALS:
tamar Michah 10/23/2025
nes Michaels Date
Senior Planner
1/23/25
land pres 10/29/2025
Cari James Date
Finance Director
10/30/2025
Thomas Hedgegard Date
Deputy City Manager
1029.2025
Salvador Navarrete Date
City Attorney
11•4.25
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 25 -
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 2026
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 Species 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, 2020, and 2025 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
infation, annual adjustmenre are the SitS de valed ent fees keed pree it adopted by the Lathrop City Council; and
WHEREAS, the method of annual adjustments was modified in 2011, 2016, 2020, and 2025; and
Resolution No. 25-
WHEREAS, the 2025 adjustment resulted in a minor change to category "A" with removal of outlier (three standard deviations) with an adjustment to the easement to fee title percentage used in the fee model and categories "B" and "C" with updated costs for each component.
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 2026 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, 2026 - December 31, 2026.
Resolution No. 25-
The foregoing resolution was passed and adopted this 10th day of November 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Stanto
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 25-
sen sore counce sort
CITY OF LATHROP
GRANT LINE RD
ANDER AV BERRYAN
CALIFORNIA AV ESCADERO AV
TRACY
TOLERI RD
PEACH ARBOR AV
WILLAMSO
AIRPORT WY CEDAR AY, CANAL BL
WOODWA WOODWARD RD ALDER AV
BELLA TERRA DR MOSSALE RD LAUREL AV
LE RE
STATE R BRONZAN RD
STATE ROUTE 120 PARADISE AKA-
MADRUGA RD STEWART RD
Conservation and Open Space Plan San Joaquin County Multi-Species Habitat YOSEMITE AY STOM PAINE AV
NESTLE WY DELTA AV
MANTEÇA LATHROP
DARCY PK
CROM HOWLAND RD
NICOL WI MINGO WY
LINDE! O ST
NORTHGAT THOMSEN RD
HASTINGS DR
EXETER OR: UNDINE RD
AVON AV STRATFORD AV WING LEVEE RD
DOS REIS RD
DE LIMA RD UNDINE RD
PARVE LINE
IS 3IVIS OPAL ST
CITY LIMITS
WILLOW GLEN RD
URBAN EXPANSION AREA ROBERTS RD
PLANNING AREA BOUNDARY MANTHEY RD
PRIOR AGREEMENT
VERNAL POOLS LOVELACE F FREWERT RD WING LEVEE RD
PAY ZONE B (Natural) COEL MANILA RD
PAY ZONE B (Agricultural) ROTH RD. CARLIN RD
AG. HABITAT OPEN SPACES
FRESBELY BRIGGS RD CROCKER RD
PAY ZONE A
OTHER OPEN SPACES Attachment 2
CATEGORY B
BOWMAN RD
NO PAY ZONE FISK RD
SMALL, RD MCKINLEY AV HARLAN RD BOWMAN RD
LAND CATEGORY / PAY ZONES ON ISR
ATTACHMENT " 3 "
SJCOG, Inc. SJCOG, Inc.
555 East Weber Avenue • Stockton, CA 95202 • (209) 235-0574 • Email: [email protected] San Joaquin County Multi-Species Habitat Conservation & Open Space Plan (SJMSCP)
Christina Fugazi
2026 Updated Habitat Fees*
CHAIR
Gary Singh
Habitat Type Fee Per Acre
VICE CHAIR
Diane Nguyen
Multi-Purpose Open Space $8,935
EXECUTIVE DIRECTOR
Member Agencies Natural $17,868
CITIES OF
ESCALON, Agriculture $17,868
LATHROP,
Vernal Pool - uplands $72,662
LODI,
MANTECA, Vernal Pool - wetted
$183,894
MOUNTAIN HOUSE.
RIPON, * Effective January 1, 2026 - December 31, 2026
STOCKTON,
TRACY.
AND
2026 Endowment Fees with In-lieu Land**
THE COUNTY OF SAN
JOAQUIN
Land TOTAL PER
Enhancement
Type of Preserve Management ACRE
Cost/acre
Cost/acre ENDOWMENT
Agricultural Habitat Lands $6,185.00 $627.00 $6,812.00
Natural Lands $6,185.00 $627.00 $6,812.00
Vernal Pool Habitat
Vernal Pool Grasslands $15,764.00 $1,424.00 $16,862.53
Vernal Pool Wetted $127,980.00 $1,395.00 $124,976.14
** Effective January 1, 2026 - December 31, 2026 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, Inc. 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 1" 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 ground disturbance or stem removal, whichever comes first.
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