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HomeMy WebLinkAboutAgenda Report - November 4, 2015 G-01 PHw AGENDA ITEM JQ CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Conduct a Public Hearing to Consider Adoption of Resolution Setting the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan Development Fees For 2016 MEETING DATE: November 4, 2015 PREPARED BY: Community Development Department RECOMMENDED ACTION: Conduct a Public Hearing to consider adoption of resolution setting the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan Development Fees for 2016. BACKGROUND INFORMATION: On February 21, 2001, the City of Lodi adopted the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan (SJMSCP). The Plan includes a schedule of fees to be paid by property owners who propose to develop their property with non- agricultural uses. These fees are used to mitigate for the cumulative impacts of new development on habitat lands within Lodi and San Joaquin County. The fees are reviewed on an annual basis. According to the San Joaquin Council of Governments (SJCOG), it is necessary for all jurisdictions covered by the Plan to adopt the annual Habitat Conservation Plan (HCP) fees in order for those jurisdictions to continue to participate in the Plan. SJCOG adopted a financial analysis model in late 2006 to calculate development fees. The Financial Analysis Model also established a formula method that provides for future annual adjustments of the fee schedule based on the established criteria. Utilizing this formula, the SJCOG has established a new fee schedule for 2016 (Exhibit A). The 2016 per acre fees for all categories of habitat land have increased over 7 percent from the prior year. In 2015 the fees went up by 9 percent over the previous year. Fees are calculated based upon appraisal value of easements. Open Space lands have increased from $7,281 to $7,807. Agriculture and Natural lands (the two largest categories) have increased from $14,543 to $15,596. Fees for Vernal Pool (grasslands) habitat lands increased from $42,784 to $46,869 and Vernal Pool (wetted lands) increased from $85,631 to $90,273. An explanation of the analysis methodology is included in the SJCOG staff report (Exhibit B). On Thursday, September 24, 2015, the San Joaquin Council of Governments Board approved the attached HCP fee schedule for 2016. The Board coordinates the review of land costs to ensure that the attached land mitigation costs will satisfy habitat conservation and purchases. All local jurisdictions are requested to approve the new fee schedule that will take effect on January 1, 2016 and expire December 31, 2016. The fees will be paid by land owners who develop their property with projects that are subject to the fees. - - - • rairtTirl'!� Habitat Fees Page 2 of 2 FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable, :r x" it ■�r .a:iZi Attachments: 1) Fee Schedule for 2016 2) SJCOG Staff Report w/Fee Analysis Update summary Anthony Silva CHAIR Steve DeBrnm VICE CHAIR Andrew T. Chesley PRESIDENT Member Agencies CFITESOF ESCALON, LATHROP, LODI, MANTECA, RIPON, SFOCKFON, TRACY, AND THECOUNTYOF SANJOAQUIN SJCOG, Inc. 555 East Weber Avenue • Stockton, CA 95202 • (209) 235-0600 • FAX (209) 235-0438 San Joaquin County Multi -Species Habitat Conservation & Open Space Plan (SJMSCP) 2016 Ubdated Habitat Fees* * Effective January 1, 2016 — December 31, 2016 2016 Endowment Fees with In -lieu Land** Agricultural Habitat Lands $3,302.13 $1,880.37 $5,182.50 Natural Lands $3,302.13 $1,880.37 $5,182.50 Vernal Pool Habitat Vernal Pool Grasslands $621.84 $6,831.53 $7,453.37 Vernal Pool Wetted $44,025.87 $6,831.53 $50,857.40 ** Effective January 1, 2016 — December 31, 2016 in lieu of fees to be used as the endowment for the dedicated land preserves (Category B + C) 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. September 2015 SJCOG, Inc. Staff Report SUBJECT: 2016 SJMSCP Development Fees RECOMMENDED ACTION: Motion to Approve the 2016 SJMSCP Development Fees as Adjusted Pursuant to Land Sale Comparables and Consumer Price Index DISCUSSION: SUMMARY: Under the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan (SJMSCP), SJCOG, Inc., as administrators of the habitat plan, have requirement for establishment of the annual development fee for each calendar year. The current model used has been adopted by the SJCOG, Inc. Board originally in 2006 and updated portions in 2013 with the Habitat Technical Advisory Financial Sub -Committee, HTAC and SJCOG, Inc. approval. Because of an unexpected interruption to the 4-5 year review with California Department of Fish and Wildlife representative being transferred, the SJMSCP is relying on the existing model to establish the 2016 fees for the next calendar year (January 1 — December 31, 2016). Following the same procedures under the SJCOG, Inc. Board -adopted financial analysis and jurisdiction approved process for establishing the SJMSCP development fees for the various habitat categories that has been in place since 2013's update, SJCOG, Inc. staff and the Habitat Technical Advisory Committee (HTAC) Financial Subcommittee completed the 2016 SJMSCP Fee Analysis. The outcome is an increase of 7.24% to the habitat development fees from the prior year. The result was an increase in the fees from 2015 to 2016 as shown in the table 1 and 2 below. i aaie i - Luio ajlviat;r iieveio mens r ees Open Space $5,206.81 $1,651.07 $949.55 $7,807.42 $7,807 AG/Natural $10,413.61 $3,302.13 $1,880.37 $15,596.11 $15,596 Vernal Pool (grasslands) $39,415.32 $621.84 $6,831.53 $46,868.70 $46,869 Vernal Pool (wetted) $39,415.32 $44,025.87 $6,831.53 $90,272.73 $90,273 Tahle 2 - 201 _S SJUNCP Develanment Fees Open Space $4,713.60 $1,629.88 $937.36 $7,280.85 $7,281 AGINatural $9,427.21 $3,259.76 $1,856.24 $14,543.20 $14,543 Vernal Pool (grasslands) $35,426.16 $613.86 $6,743.86 $42,783.89 $42,784 Vernal Pool (wetted) $35,426.16 $43,460.88 $6,743.86 $85,630.91 $85,631 Projects which participate under the SJMSCP benefit from a pre -determined streamlined processing of the project rather than navigating through a very long and cumbersome regulatory process led by local jurisdiction staff outside the habitat plan. By opting for participation, the project can choose any number of ways to provide mitigation for the impacts of the project through the plan: 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. Or, the project proponent can chose to not participate in the plan and fulfill mitigation requirements on their own with state and federal permitting agencies. RECOMMENDATION: The HTAC Financial Subcommittee and SJCOG, Inc. staff recommends the HTAC recommend to the SJCOG, Inc. Board adoption of the 2016 SJMSCP Development Fees, as adjusted pursuant to the land sale comparables and consumer price index. FISCAL IMPACT: Development fees will provide funding for SJCOG, Inc. to mitigate project impacts covered under the SJMSCP permits for the subsequent calendar year. BACKGROUND: In accordance with the SJMSCP and the updated financial analysis model adopted by the SJCOG, Inc. Board for current and future fee updates, SJCOG, Inc. staff shall notify each local jurisdiction regarding proposed annual adjustments to the SJMSCP development fees. The development fees are calculated using a formula method which will be adjusted annually as shown in the table below [FEE = Category A (acquisition) + Category B (assessment & enhancement) + Category C (management & admin)]. Each component of the formula is adjusted using a specific mechanism which relates to the individual component in the fees. The development fees established must be adopted by each of the jurisdictions and would become effective on January 1St of the subsequent year for projects using the SJMSCP. Category A (acquisition) - Comparables This category is directly related to land valuation based on comparables which occur in specific zones of the plan. This category is evaluated on a yearly basis by taking all qualified comparables in each zone, including SJCOG, Inc. easements, to set a weighted cost per acre using the same methodology as in the 2006 Financial Analysis Update created by EPS and recently updated in 2013 by the Habitat Technical Advisory Financial Sub -Committee, HTAC and SJCOG, Inc. approval. The SJCOG, Inc. easements are evaluated using the appraised value of the property in the before condition to be included with the fee title sales of other property occurring in San Joaquin County meeting specific criteria below. The final weighted cost per acre of each zone is calculated into a blended rate under SJMSCP Fee Category A (acquisition) figure for each habitat type (Attachment 1 -Tables A -D). The criteria to determine valid comparables used in the weighted calculation are: 1. All SJCOG, Inc. transactions (fee title and appraised value of unencumbered property) 2. Sales not less than 40 acres 3. Sales not greater than 500 acres 4. No parcels with vineyard or orchard (except SJCOG, Inc. transactions for special needs) 5. Must be land which would fulfill mitigation under the plan 6. Comparable sales reviewed by Habitat Technical Advisory Financial Sub -committee 7. Not greater than 2 years old from the date of June 30th of each year with all acceptable comparables included (criteria 1-5). A minimum of 10 acceptable comparables are required for analysis. If the minimum of 10 transactions are not available, the time period will extend at 3 month intervals prior to the beginning date until 10 comparables are gathered. The Category A component predominately makes up the bulk of the overall fee under the SJMSCP for those development projects which elect to pay the full fee rather than dedicating land in lieu of the fee. From the review of the current land value sales, SJCOG, Inc. staff has seen the value of agricultural lands increase immensely over the last two years from the prior comparable land sales. Most of the increase in value maybe attributed to speculation of water rights, the potential conversion of the land from row and field crops to permanent crops which yield a very high return on investment or both the above reasons. The outcome for whatever reason causes the Category A component of the SJMSCP fee to drive the overall fee upward. SJCOG, Inc. staff is expecting the trend to continue into the near future and continues to educate the development community to control the costs by dedication of land rather than the full fee. The calculation results in a 10.47% increase to the Agricultural/Natural Habitat type of Category A (acquisition) component to be $10,413.67. Category B (assessment & enhancement) - Consumer Price Index This category is a straight forward use of an average of the California Consumer Price Index (CPI) calculator, as reported by the California Department of Finance, for a 12 month period following a fiscal year (June — June) to keep up with inflation on a yearly basis. The California CPI calculation was an increase of 1.3%. The calculation results in an increase of the Agricultural/Natural Habitat type Category B (Assessment & Enhancement) component to be $3,302.13. Category C (management & administration) - Consumer Price Index This category is a straight forward use of an average of the California Consumer Price Index (CPI) calculator, as reported by the California Department of Finance, for a 12 month period following a fiscal year (June — June) to keep up with inflation on a yearly basis. The California CPI calculation was an increase of 1.3%. The calculation results in an increase of the Agricultural/Natural Habitat type Category C (Management & Administration) component to be $1,880.37. SJCOG, Inc. staff calculated the fees using the SJMSCP Financial Analysis formula model [FEE = Category A (acquisition) + Category B (assessment & enhancement) + Category C (management & admin)] which is shown in Table 1-8 and final fee table in attachment 2. The overall result in the calculations is a 7.24% increase in the fees for 2016 shown in the table below. Table 3: 2016 SJMSCP Develobment Fees Open Space $5,206.81 $1,651.07 $949.55 $7,807.42 $7,807 AG/Natural $10,413.61 $3,302.13 $1,880.37 $15,596.11 $15,596 Vernal Pool (grasslands) $39,415.32 $621.84 $6,831.53 $46,868.70 $46,869 Vernal Pool $39,415.32 $44,025.87 $6,831.53 $90,272.73 $90,273 (wetted) The SJMSCP process allows projects which participate under the county -wide habitat plan to realize pre -determined streamlined processing of the project through an otherwise cumbersome regulatory process in a much shorter period of time and cost then navigating outside the plan. By opting for participation and realizing the benefits of the SJMSCP, the project can choose any number of ways to mitigate the impacts of the project through the plan. The SJMSCP allows projects to chose one or multiple mitigation options like simply pay a fee, redesign the project to avoid/minimize impacts, provide land in lieu of the SJMSCP fee which the project will negotiate the costs on their own, or a combination of the options. On Wednesday, August 12, the Financial Subcommittee made a recommendation to the HTAC for recommendation to the SJCOG, Inc. Board to approve the 2016 SJMSCP Development Fee model which will be a 7.24% increase in fee from 2015 to 2016 based on the annual financial analysis comparable land sales and model run. At the September 2015 HTAC meeting, the full committee reviewed and made the recommendation to the SJCOG, Inc. Board to approve the 2016 SJMSCP Development Fees for the plan during the SJCOG, Inc. portion of the Board meeting on September 24, 2015. If recommended and approved by the Board, SJCOG, Inc. staff will be working with the local jurisdiction staff to schedule the matter at the respective jurisdiction for approval in the fall of 2015. The SJMSCP fee must be in place by January 1, 2016 as required under the SJMSCP permits for covered projects under the plan. COMMITTEE ACTIONS: • HTAC FINANICAL SUB -COMMITTEE: Recommended Approval to HTAC John Beckman, BIA Dave Stagnaro, Stockton Jane Humes, Conservation Mo Hatef, SI County Josh Emery, USFWS Todd Gardner, CDFW • HTAC: Recommendation Approved • Management & Finance: Information • Exec Committee: Information • SJCOG, Inc. Board: Action Required Prepared by: Steven Mayo, Program Manager RESOLUTION NO. 2015-197 A RESOLUTION OF THE LODI CITY COUNCIL SETTING THE SAN JOAQUIN COUNTY MULTI -SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN DEVELOPMENT FEE SCHEDULE WHEREAS, the City Council of the City of Lodi adopted Ordinance No. 1707 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 developments pursuant to the SJMSCP within the City of Lodi; and WHEREAS, a "Fee Study" dated July 16, 2001, was prepared, which analyzed and identified 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 Lodi and in San Joaquin County; and WHEREAS, after considering the Fee Study and the testimony received at the public hearing, the Lodi City Council approved said report; and further found that the future development in the City of Lodi 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" dated November 2, 2006, was prepared, which analyzed and identified the costs, funding, and indexing of the SJMSCP; and WHEREAS, the City Council adopted Ordinance No. 1825 amending Section 15.68.020(b), "Annual Adjustment" of the SJMSCP; and WHEREAS, the SJMSCP Development Fees are divided into four categories: multi- purpose open space conversion; natural land and agricultural habitat land; and vernal pool habitat; and WHEREAS, the SJMSCP Development Fees for these three categories will be increased consistent with the Updated Fee Study findings for the year 2016; and WHEREAS, to ensure that the SJMSCP development fees keep pace with inflation, annual adjustments, based on the method set forth in this resolution, shall be made to the fees annually; and WHEREAS, the Updated Fee Study with the SJMSCP and the fee amendment were available for public inspection and review in the office of the City Clerk for more than ten days prior to the date of this Public Hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi 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. 1707, and remain valid, and the City Council therefore adopts such determinations. 2. The City Council finds and declares that since adoption of Ordinance No. 1707, the cost of land has increased in San Joaquin County; and that in order to maintain the reasonable relationship established by Ordinance No. 1707, it is necessary to increase the Development Fee for the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan. 3. The Development Fee for natural lands, agricultural land, vernal pool habitat and multi-purpose open space conversion shall be consistent with the table identified in Exhibit "A" and attached hereto. 4. The Fee provided in this Resolution shall be effective on January 1, 2016. NOW, THEREFORE, BE IT DETERMINED AND RESOLVED that the City of Lodi City Council hereby approves the proposed Habitat Conservation and Open Space fee adjustment. Dated: November 4, 2015 I hereby certify that Resolution No. 2015-197 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 4, 2015, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None Z. ;rCAo," rNNFE FERRAIOLO erk 2015-197 Anthony Silva CHAIR Steve DeBrnm VICE CHAIR Andrew T. Chesley PRESIDENT Member Agencies CFITESOF ESCALON, LATHROP, LODI, MANTECA, RIPON, SFOCKFON, TRACY, AND THECOUNTYOF SANJOAQUIN SJCOG, Inc. 555 East Weber Avenue • Stockton, CA 95202 • (209) 235-0600 • FAX (209) 235-0438 San Joaquin County Multi -Species Habitat Conservation & Open Space Plan (SJMSCP) 2016 Ubdated Habitat Fees* * Effective January 1, 2016 — December 31, 2016 2016 Endowment Fees with In -lieu Land** Agricultural Habitat Lands $3,302.13 $1,880.37 $5,182.50 Natural Lands $3,302.13 $1,880.37 $5,182.50 Vernal Pool Habitat Vernal Pool Grasslands $621.84 $6,831.53 $7,453.37 Vernal Pool Wetted $44,025.87 $6,831.53 $50,857.40 ** Effective January 1, 2016 — December 31, 2016 in lieu of fees to be used as the endowment for the dedicated land preserves (Category B + C) 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. (7 Please immediately confirm receipt of this fax by calling 333-6702 CITY OF LODI P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: PUBLIC HEARING TO ADOPT RESOLUTION SETTING THE SAN JOAQUIN COUNTY MULTI -SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN DEVELOPMENT FEES FOR 2016 PUBLISH DATE: SATURDAY, OCTOBER 24, 2015 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: JENNIFER M. FERRAIOLO, CITY CLERK LNS ACCT. #0510052 City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, OCTOBER 22, 2015 ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK PAMELA M. FARRIS DEPUTY CITY CLERK ELENA STODDARD ADMINISTRATIVE CLERK Emailed to the Sentinel at dianer@lodinews.com at-t(ie} ont (pages) LNS Phoned to confirm receipt of all.p8 es at (tiifi8� forms\advins.doc DECLARATION OF P STING PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION SETTING THE SAN JOAQUIN COUNTY MULTI -SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN DEVELOPMENT FEES FOR 2016 On Thursday, October 22, 2015, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider adopting a resolution setting the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan Development fees for 2016 (attached and marked as Exhibit A) was posted at the following locations: Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum WorkNet Office I declare under penalty of perjury that the foregoing is true and correct. Executed on October 22, 2015, at Lodi, California. PAMELA M. FARRIS DEPUTY CITY CLERK ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK ELENA STODDARD ADMINISTRATIVE CLERK NAAdministration\CLERK\Public Hearings\AFFADAVITS\DECPOSTCDD.DOC CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: November 4, 2015 Time: 7:00 p.m. For information regarding this notice please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING EE XX H ci B, I TT A] NOTICE IS HEREBY GIVEN that on Wednesday, November 4, 2015, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following item: a) Adopting a resolution setting the San Joaquin County Multi - Species Habitat Conservation and Open Space Plan Development fees for 2016. Information regarding this item may be obtained in the Community Development Department, 221 West Pine Street, Lodi, (209) 333-6711. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. By Order of the Lodi City Council: �errraiolo City Clerk Dated: October 21, 2015 ed as to form: rr D. Magdich City Attorney CLERK\PUBHEAR\NOTICES\NOTCDD.DOC 10/15/15