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ADOPT A RESOLUTION APPROVING THE SAN JOAQUIN COUNTY MULTI-SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN 2025 DEVELOPMENT FEE SCHEDULE
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Adopt a resolution approving the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan 2025 Development Fee Schedule.
2. It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
On November 14, 2000, the San Joaquin Council of Governments, Inc. (SJCOG, Inc) established the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (“Plan” or “SJMSCP”). The Plan provides a strategy for balancing the needs to accommodate new development while encouraging the preservation of open space and agricultural areas as well as protected species habitat in San Joaquin County. Participation in the Plan is voluntary and available to the development community as an option to pay a fee to mitigate habitat impacts because of their development projects. Developers can fulfill mitigation obligations more efficiently with Plan participation and avoid negotiating mitigation measures with various Federal and State environmental protection agencies for their individual projects. SJCOG, Inc. collects the fees which are used to purchase permanent habitat preservation areas. Developers who do not participate in the Plan must provide their own project level analysis during the entitlement or construction permit process for proposals that could negatively impact natural resources in the region. Fees are updated on an annual basis and require the adoption of the elected officials of each participating jurisdiction within San Joaquin County to be effective. On February 20, 2001, the City of Stockton adopted the Plan, the last fee update was adopted by City Council on December 12, 2023.
In August 2024, the SJCOG, Inc. Board of Directors approved the 2025 Plan Development Fee Schedule (Attachment A - SJMSCP Staff Report). SJCOG, Inc. proposes an approximate 7.5% overall decrease in the Agricultural and Natural habitat classifications for the Plan, which are the two most common areas impacted by development projects. As shown in Attachment A, the 2024 Fee for the Agricultural and Natural habitat classification was $17,833 and is now proposed to be $16,492 in 2025. The decrease is primarily due to a decline in the land acquisition component (Category A).
The City Council is requested to approve the proposed fee schedule. The SJMSCP Compensation Zones for Stockton are mostly located on the outer parts of the City (see Attachment B - SJMSCP Compensation Zone Map). This map displays the classification of land within San Joaquin County into categories based on their general habitat type. These zones guide the compensation of development fees that would be charged to conduct permitted activities pursuant to Section 8.2.1 of the SJMSCP.
DISCUSSION
Background
The City became a participant in the Plan by joining the Joint Powers Authority (JPA) in 2001. As a participant in the JPA, City Council approval of annual fee adjustments is required. Annual plan fee rates are determined using a financial model that SJCOG, Inc. maintains and updates at 5-year increments to address land sales market conditions and inflation changes. In the past, delayed fee updates have resulted in lack of funding for the purchase and preservation of areas, as well as significant fee increases for the development community. To accommodate changing market conditions and to provide clarity in fees, SJCOG has become more proactive in the Plan’s fee assessment.
Over the last six months, SJCOG, Inc.’s Habitat Technical Advisory Committee (HTAC) and Financial Subcommittee engaged in a review of land sales market data and analysis. The HTAC consists of planning staff from local county and city agencies (including Stockton), building industry associations, and state and federal environmental protection agencies. The proposed 2025 Development Fee Annual Adjustment is based on the 2020 San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) 5-year Financial Model Update. The Habitat Fee must be adopted by each local jurisdiction to take effect in that community.
The collected fees are used to purchase and preserve land throughout San Joaquin County. Additional costs cover the restoration of land, monitoring, reporting, and biological reviews of land subject to the overall Plan. The SJCOG, Inc. 2023 Preserve List demonstrates 105 total preserves within San Joaquin County.
While there are no preserve areas located within the City of Stockton, the Jacques Highway 4 Preserve, D’Alonza Property Preserve and the Torlai Property Preserve are closest to city limits. These three preserves are located in the Delta Index Zone, west of Interstate 5 and south of Highway 4. Enhancements have been made to the Torlai Property Preserve including emergent wetland creation which will provide potential nesting habitat for waterfowl and tricolored blackbird, as well as suitable habitats for double crested cormorant, western pond turtle, loggerhead shrike, waterfowl, herons and egrets. These lands are protected through land covenants (i.e., easements, restrictions) that prevent development and can also include possible improvements to restore or encourage new habitat. A map of the regional preserve areas is included in Attachment C - Regional Preserve Areas.
On February 20, 2001, the Stockton City Council adopted three Resolutions as follows:
1. Resolution No. 01-0099 -- Certifying the Final Environmental Impact Report/Environmental Impact Statement (Final EIR/EIS), adopting the related California Environmental Quality Act (CEQA) Findings and Mitigation Reporting/Monitoring Program, and adopting the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan;
2. Resolution No. 01-0100 -- Adopting the Implementation Agreement of the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan authorizing the filing of the related Federal Endangered Species Act Section 10(a)(1)(B) Incidental Take Permit application with the U.S. Fish and Wildlife Service; and
3. Resolution No. 01-0101 -- Approving amendments to the JPA Agreement with SJCOG, Inc. authorizing SJCOG, Inc. to assume responsibilities specified in the San Joaquin County Multi- Species Habitat Conservation and Open Space Plan.
Applicants that participate in the Plan benefit from a predetermined streamlined process. By participating in the Plan, the applicant may choose from a menu of options to mitigate impacts:
1. Pay the Plan Fee;
2. Redesign the project to avoid/minimize impacts;
3. Provide land in lieu of the Plan Fee; or
4. Any combination of the above options.
Alternatively, a project can choose not to participate in the Plan and fulfill mitigation requirements on its own with the respective permitting agencies. This option appears to be chosen less often by developers.
Originally, the City collected Plan fees at the time of building permit issuance, like other development impact fees in the City’s Public Facilities Fee Program. Plan fees for individual projects (e.g., house on a single parcel) are adjusted to ensure that the per-acre fee as established by SJCOG, Inc. is collected for the entire (gross) project area. For example, a house built on a parcel within a large subdivision relies on additional land to support the residential use (e.g., road in front of the house). The adjusted development fee includes this supporting land so that all the acreage is accounted for within a given project area, and the appropriate Plan fee is paid.
On December 15, 2009, City Council adopted Resolution Number 09-409, which authorized an amendment to the Public Facility Fee Program’s Administrative Guidelines to establish SJCOG, Inc. as the entity responsible for the collection of the development fee. This change was made to increase administrative efficiency in the calculation and collection of Plan fees.
Each year, SJCOG, Inc. uses comparable agricultural land sales within San Joaquin County that meet certain criteria adopted by the Board. Easement acquisition costs are a primary consideration. As shown in Table 1, Plan fees can fluctuate from year to year.
Table 1 - Plan Fees 2019-2024 (Rate per acre)
|
TYPE/ YEAR |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Multi-Purpose Open Space |
$6,700 |
$6,412 |
$8,682 |
$9,781 |
$9,629 |
$8,918 |
|
Agriculture/ Natural |
$13,399 |
$12,822 |
$17,363 |
$19,561 |
$19,255 |
$17,833 |
|
Vernal Pool Wetted |
$101,033 |
$100,788 |
$161,286 |
$174,040 |
$176,878 |
$177,724 |
|
Vernal Pool Grasslands |
$54,576 |
$52,833 |
$71,544 |
$80,453 |
$75,320 |
$69,408 |
Present Situation
The SJCOG, Inc. Board of Directors recently approved the proposed 2025 Development Fee adjustment. The fee model uses three main categories to calculate fee rates: Category A - Acquisition; Category B - Assessment and Enhancement; and Category C - Management, Monitoring and Administration.
I. Category A (Acquisition) - Comparable
This category is directly related to land valuation based on comparable land sales in San Joaquin County in specific zones of the plan area (Central Zone, Central Southwest Transition Zone, and Delta Zone) over an established two-year period meeting the established criteria (e.g. “sales not less than 40 acres” and “no parcels with vineyard or orchard (except SJCOG, Inc. transactions for special needs”) used for comparable land sales. Cost estimates for this category will continue to be evaluated on a yearly basis by taking all qualified fee title comparable sales in each zone to set a weighted cost per acre. The fee model analysis update results in a 12.7% decrease in the Agricultural/Natural Habitat types of Category A component to be $9,608. The reason for the decrease is the decline in overall comparable fee title land sale values from prior year values.
II. Category B (Assessment & Enhancement) - Refined Cost Factors/Redistribution of Habitat/ Consumer Price Index
The unit cost factors (per acre or per year for some items) are adjusted only by the California Consumer Price Index (CPI), (the California CPI calculation was an increase of 3.2%). But the total cost for Category B is also a function of the SJMSCP Annual Report data updated annually (acres remaining to be acquired and the number of years remaining in the permit term; the fee per acre is a function of those total calculated costs and the land conversion acres remaining). These factors all feed into the fee model. The fee model update results in a 0.5% increase in the Agricultural/Natural Habitat types of Category B component to be $6,066.
III. Category C (Management, Monitoring and Administration) - Refined Cost Factors/Long Term Investment/Consumer Price Index
Annual cost updates will continue to use the California Consumer Price Index, as reported by the California Department of Finance, for the preceding 12-month fiscal year (e.g., July - June) to keep up with inflation annually. The fee model update results in a 3.2% increase in the Agricultural/Natural Habitat types of Category C component from prior years to be $817.
Plan Mitigation Fee Formula = Proposed 2025 Plan Fees
The formula for fee calculation is categorized into three distinct components (discussed above) to calculate a supported fee per acre [FEE = Category A (acquisition) + Category B (assessment & enhancement) + Category C (management, monitoring and administration)].
For comparison purposes, the 2024 SJMSCP Fees and calculations are shown in Table 2, and the proposed 2025 Plan Fees and calculations are shown in Table 3. Compared to 2024, the proposed 2025 Plan Fees reflect an overall decrease of 7.5% in the Agricultural and Natural habitat classification fees.
Table 2 - 2024 SJMSCP Development Fees
|
Habitat Type |
Category A |
Category B |
Category C |
Total Fee |
Rounded Fee |
|
Other Open Space |
$5,502.00 |
$3,019.00 |
$396.66 |
$8,917.66 |
$8,918 |
|
Natural/Ag |
$11,003.00 |
$6,038.00 |
$792.15 |
$17,833.15 |
$17,833 |
|
Vernal Pool Grasslands |
$52,545.00 |
$14,906.00 |
$1,956.53 |
$69,407.53 |
$69,408 |
|
Vernal Pool Wetted |
$52,748.00 |
$123,058.00 |
$1,918.14 |
$177,724.14 |
$177,724 |
Table 3 - Proposed 2025 SJMSCP Development Fees
|
Habitat Type |
Category A |
Category B |
Category C |
Total Fee |
Rounded Fee |
|
Other Open Space |
$4,804.00 |
$3,033.00 |
$409.47 |
$8,246.47 |
$8,246 |
|
Natural/Ag |
$9,608.00 |
$6,066.00 |
$817.74 |
$16,491.74 |
$16,492 |
|
Vernal Pool Grasslands |
$48,084.00 |
$15,386.00 |
$2,019.72 |
$65,489.72 |
$65,490 |
|
Vernal Pool Wetted |
$48,270.00 |
$127,031.00 |
$1,980.10 |
$177,281.10 |
$177,281 |
Although the City adopted several Public Facility Fee Reduction Programs and a Fee Deferral Program for specified fees within the City’s control, fees such as this Countywide Habitat Conservation Plan (HCP) Fee are subject to a regional agreement that was promulgated by the Federal and State Endangered Species Act. The administration of this fee is detailed in the Countywide HCP, where SJCOG Inc. is the designated Administrator. Methodologies and fee analyses are overseen by SJCOG staff, HTAC financial subcommittees and consultants. As a result, these “development fees” are not subject to reduction and deferral programs as they are not City fees and are considered as “pass-through” fees.
PUBLIC NOTICE
A Public Notice of this hearing was published in the Record on November 1, 2024.
FINANCIAL SUMMARY
There is no direct financial impact to the City of Stockton, as this Development Fee is collected directly by SJCOG, Inc.
Attachment A - SJMSCP Staff Report
Attachment B - SJMSCP Compensation Zone Map
Attachment C - Regional Preserve Areas