ITEM 5. 1
CITY MANAGER' S REPORT
OCTOBER 12, 2026 CITY COUNCIL REGULAR MEETING
ITEM: PUBLIC HEARING ( PUBLISHED NOTICE) TO
CONSIDER THE 2027 SJMSCP DEVELOPMENT FEE
ANNUAL ADJUSTMENT
RECOMMENDATION: Council to Consider the Following:.
1. Hold a Public Hearing; and
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 2027
SUMMARY:
Based on the San Joaquin Council of Governments ( SJCOG) Board' s five- year financial model update on September 25, 2025, coupled with the annual adjustment to the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan SJMSCP) development fees, the SJCOG Board is now requesting each participating jurisdiction to adopt the annual adjustment to become effective on January 1, 2027.
The final calculation of the 2027 SJMSCP development fees shows an approximate overall increase of 28.% in the most commonly impacted categories of Agricultural and Natural Habitat Classifications compared to 2026. The increase is due primarily to a rise in the land acquisition component ( Category A) for agricultural land price values of comparable sales and a rise in the reported Consumer Price Index ( CPI) for Categories B and C ( which include land management and enhancement activities for on -going preserves). The following table shows the habitat categories, the last 5 years of fees, the current 2026 fees, and proposed 2027 fee adjustments ( per acre).
YEAR 2022 2023 2024 2025 2026 2027
Proposed)
Multipurpose
9, 781 9, 629 8, 918 8, 246 8, 935 11, 455
Agriculture/
Natural 19, 561 19, 255 17, 833 16, 492 17, 868 22, 908 Vernal Pool
grasslands) 80, 453 75, 320 69, 408 65, 490 72, 662 97, 680 Vernal Pool
wetted) 174, 00 176, 878 177, 724 177, 281 183, 894 212,79
CITY MANAGERS - REPORT
OCTOBER 12, 2026 CITY COUNCIL REGULAR MEETING
2027 SJMSCP DEVELOPMENT FEES
PAGE 2.
Staff. recommends adoption of. the attached resolution : approving : -an : annual adjustmentto the San: Joaquin: County, Multi -Species Habitat Conservation and Open Space Plan ( SJMSCP). development .fees .for 20.7
BAC KG ROUN: D:
On November 6,. 2: 001, :the: City Council adopted: 0rdinance No. -(01. 7194, establishing the .SJMSCP: The . planestablished a procedure to mitigate the :impacts of new, development on undevelopedland 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. atthat 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 1st of each year.
The.: dev. eloprrrentfees: Were -calculated using a formula which is-: adjusted:. annually Fee = Category A :( acquisition): +• Category B ( assessment & enhancement) + Category C.( Iand: management & administration)]:'. E: achcom. ponent of the formula is adjusted using a specific mechanism which:. relates: to: the: individual component in the::
fees. As referenced: above, .SJCOG . alsofacilitated the:: required five- . year- financial update to the SJMSCP: fee categories in September 2025:
Projects: which : participate : under the ': SJMSCP • be: nefit:. frorn a pre -determined streamlined:: processing of : the. Project- :rather.: than navigating a. : very Tong , and cumbersome regulatory p: rocess: 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;
Redesign the project to avoid/ minimize impacts;.
3. :. Provide land in lieu :of the SJMSCP fee which the .project will negotiate the easement/ feetitle costs; Or.
4. Any. combination of theabove 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.
Its: important to note that development:. projectS in Lathrop such as River : Islands,- Central' Lathrop; South Lathrop., and .Lathrop Gateway have taken advantage of thee. benefit of this program:
CITY MANAGERS REPORT
OCTOBER 12, 2026 CITY COUNCIL REGULAR MEETING
2027 SJMSCP DEVELOPMENT FEES
RECOMMENDATION:
PAGE 3
Staff recornmends that the City . Council:. consider. all information . provided and :
Submitted,. .take sand ` consider : :all :: public testimony and, :.if determined to b: e appropriate, adopt a resolution approving the annual :adjustment to the San Joaquin County Multi - Species Habitat. Conservation : and: Open' Space Plan development:. fees_:
for 2027,..
FI AL IMPA
The fee adoption has. no: fiscal impactto the City.:: Developers: may participate: in• the SJMSCP-: plan:. or.pt out and .fulfill : mitigation requirements with state .and : federal permitting agencies
ATTACHMENT:
1 Resolution • to. ,approve: th :202: 7 San Joaquin County, :..Multi -Species Habitat` Conservation -and, Open :Space Plan. (SJMSCP) development fee::
2.: SJMSCP :Habitat Conservation . Map.
2027 Habitat Fee. Table
CITY MANAGERSREPORT- -
OCTOBER 12, 2026 CITY COUNCIL REGULAR MEETING.::
2027 SJ. MSCP DEVELOP: MENT: FES..
APPROVALS:
Jarijs Michaels
Senior Planner,
at.
ity Develo: pment: Director
Carl: Jmes
financeDirector
Thomas Hedgegard
Deputy City Manager.
Salvador Navarrete
City Attorney
Stephen J. Salvatore
City Manager
Date .
RESOLUTION NO. 26 -
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 2027
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 Multi - 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
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, 2020, and 2025; and
Resolution No. 26-
WHEREAS, the 2026 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 2027 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, 2027 - December 31, 2027.
Resolution No. 26-
The foregoing resolution was passed and adopted this 12th day of October 2026, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 26-
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CITY OF LATHROP
San Joaquin Council. Gostrnments
o am se I
555 Eau W.. Avenue IL
BbtlOM, G 05202
Attachment 3
Gcay Singh
CHAIR
Robert Rickman
VICE CHAIR
Diane Nguyen
EXECUTIVE DIRECTOR
Member Agencies
CITIES OF
ESCALON,
LATHROP,
LODI,
MANTECA,
MOUNTAIN HOUSE,
RIPON,
STOCKTON,
TRACY,
AND
THE COUNTY OF SAN
JOAQUIN
SJCOG, Inc.
555 East Weber Avenue • Stockton, CA 95202 • ( 209) 235- 0574 • Email: boyd@sjcog. org San Joaquin County Multi -Species Habitat Conservation & Open Space Plan (SJMSCP)
2027 Updated Habitat Fees*
Habitat Type Fee Per Acre
Multi -Purpose Open Space 11, 455
Natural 22, 908
Agriculture 22, 908
Vernal Pool - uplands 97, 680
Vernal Pool - wetted 212,79
ective January 1, 102" — December .i 1,
2027 Endowment Fees with In -lieu Land**
Type of Preserve
Enhancement
Cost/ acre
Land
Management
Cost/ acre
TOTAL PER
ACRE
ENDOWMENT
Agricultural Habitat Lands 6, 444. 00 648. 18 7, 092. 18 Natural Lands 6, 444. 00 648. 18 7, 092. 18
Vernal Pool Habitat
Vernal Pool Grasslands 16, 297. 00 1, 472. 10 17, 769. 10 Vernal Pool Wetted 132, 303. 00 1, 442. 1 133, 745. 12
Effective January 1, 2027 — December 31, 2027 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 -homed 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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