HomeMy WebLinkAboutResolutions - No. 2016-199RESOLUTION NO. 2016-199
A RESOLUTION OF THE LODI CITY COUNCIL SETTING
THE SAN JOAQUIN COUNTY MULTI -SPECIES HABITAT CONSERVATION
AND OPEN SPACE PLAN DEVELOPMENT FEE SCHEDULE FOR 2017, AND
FURTHER UPDATING THE FEE MODEL FOR THE CONSERVATION PLAN
WHEREAS, the City Council of the City of Lodi adopted an ordinance 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 limned 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 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 four 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 method of annual adjustments was modified in 2011 and again in 2016;
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 AND DETERMINED 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. Fes,
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 modification to the method of annual adjustments as set forth on Exhibit "B" is
hereby adopted.
5. The Fee provided in this resolution shall be effective on January 1, 2017.
6. The Lodi City Council hereby approves the proposed Habitat Conservation and Open
Space fee adjustment.
Dated: November 2, 2016
I hereby certify that Resolution No. 2016-199 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held November 2, 2016, by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NNIFE M. FERRAIOLO
City Clerk
2016-199
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EXHIBIT "A"
SJCOG, Ince.
555 Fast Weber Avemie . StockC CA 95242 • (249) =,-MO . FAX (2000) 235 -CM
Sall Joaquin Cou.ntyMulti-Species Habitat Cunwmation &
Open Space Platt (SJMSCP)
�ftA a PA TT 1 i 1 'WW 7 -, , T .L
2017 Endowment Fees with In -lieu Land*
"Effective Ianuuy 1, 2017 — December 31.2017 in lieu of €ees to be used as the eWowrmeaf for the
dedicated land laresen e% (Category B = Q
VELB Mitigation
A special free cawgofy shall ap'PlY when temoval of the Valley Elderberry Long -homed Betide
CVELB) habitat of elderberry shrubs occurs- The fee shall be paid to SJCOG. fm_ or a VELB
mitigation bank appmtizd by die Pernfitting Agencies- The cua wit fee, as established ill the VELB
Conservation Fund Accou& managed by the Center for Natural Lands Managemeni, and affm e d by
the USM, is $1,800 per VELB Unit (one unit= me. stent over 1" in dLvnetm at gmund level which
is femoved). pees shall be established by the JPA dunrg dart surveys (i.e_, counts of ssnm
to be removed with and vvidu xtt exit holes shall be completed during bion sameys) and
shall be paid to the JPA prior' to ground disturbance or sternremvvaL whichevff carnes first.
$3,426.00
$M-86
$4,196.86
Agrkultural Habitat bands
'Natural Lands
$3,126-00
'$770-$6
$4,196.86
Vernal Pool Habitat
VematPoo IGiussfands
$13,902.00
$2,348.30
816,254.30
Velimal Pool 9etted
$58,159.00
$2.305-42
S60,46S,42
"Effective Ianuuy 1, 2017 — December 31.2017 in lieu of €ees to be used as the eWowrmeaf for the
dedicated land laresen e% (Category B = Q
VELB Mitigation
A special free cawgofy shall ap'PlY when temoval of the Valley Elderberry Long -homed Betide
CVELB) habitat of elderberry shrubs occurs- The fee shall be paid to SJCOG. fm_ or a VELB
mitigation bank appmtizd by die Pernfitting Agencies- The cua wit fee, as established ill the VELB
Conservation Fund Accou& managed by the Center for Natural Lands Managemeni, and affm e d by
the USM, is $1,800 per VELB Unit (one unit= me. stent over 1" in dLvnetm at gmund level which
is femoved). pees shall be established by the JPA dunrg dart surveys (i.e_, counts of ssnm
to be removed with and vvidu xtt exit holes shall be completed during bion sameys) and
shall be paid to the JPA prior' to ground disturbance or sternremvvaL whichevff carnes first.
EXHIBIT "B"
2016 SJMSCP Financial Analysis Model Updates
U dates/Chan es to the Financial Analysis Model by SJMSCP Fee Category:
I. Category A (Acquisition) — Comparables:
This category addresses land valuation and is based on comparable land sales in San Joaquin
County. To be included in the analysis, the land sale must have occurred in specific zones of
the SJMSCP plan area (Central Zone and Delta Zone) over an established 2 -year period. Each
year, all qualified comparables in each zone, including SJCOG, Inc. easements, are evaluated
to set a weighted cost per acre using the methodology established in the 2007 and 2011
Financial Analysis Updates.
The 2016 update increases the size of parcels that can be considered as a valid
comparable from 500 acres to 640 acres.
The criteria to determine valid comparables to be 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 5W 664_0 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 SJMSCP
6. 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.
2. The update also changes the index used to bring the nominal values of the older
comparable values in the 24 -month set of comparables to current market values. The
new approach better captures actual land market trends by changing the inflator from a
flat percentage to an annual average representing the change in nominal land values
represented by the prior two years of comparable transactions.
3. The 2016 update also revises the method for determining encumbered land sale values
for use in the fee calculation model. Prior to this update, the model was limited to the
rare resales of encumbered properties within the County. The 2016 update analysis
determined that encumbered land sales, on average, represent 70% of the fee title
value. Rather than apply an index to older encumbered property sales for use in the fee
model, the 2016 revised model established the basis for calculating a weighted average
cost of easement acquisition as a set 70% of fee title value.
4. Future fee calculations will be based on the term of the SJMSCP permits remaining
(e.g., the term of the permits is 50 years and in 2016 there are 36 years remaining).
Rather than calculate the fee based on the static 50 -year term of the permits, the new
model takes into consideration time actually left on the permit and gives a better
correlation of acres remaining to be acquired under the plan during the life of the plan.
As in the previous model, the Category A analysis in the 2016 model results in costs of
easement or fee title acquisition per acre by habitat type and zone and the final cost per acre for
each habitat type is a function of the proportion of preserve acquisition by zone.
No changes are recommended for Southwest zone grassland easement acquisition, vernal pool
preserves acquisition or for transaction costs associated with preserve acquisition.
II. Category B (Assessment & Enhancement) — Refined Cost Factors/Redistribution
of Habitat/Consumer Price Index
The changes in this category include refined cost factors for biological site assessment and
preserve enhancement and management planning.
1. Refined costs to better reflect the enhancement and restoration requirements of the
SJMSCP.
2. The updated analysis redistributes preserve acres across the habitat types to more
accurately reflect the range and types of natural lands preserves described in the
adopted SJMSCP rather than all in riparian habitat classification.
3. Annually, the California Consumer Price Index (CPI), as reported by the California
Department of Finance for the preceding 12 months (July -June), inflation factor will be
applied to update annual costs for site assessment, management plans, and
enhancement plans.
III. Category C (Management & Administration) — Refined Cost Factors/Long Term
Investment/Consumer Price Index
The changes to this category include refined monitoring costs and updated management and
administration costs that are based on actual SJCOG, Inc. expenditures incurred in these
categories.
1. The update includes refinement to costs anticipated to be incurred once the term of the
permit expires and assumes that the post permit costs will be lower than costs incurred
during the permit term as many of the monitoring, reporting, and administrative
compliance costs are not required post -permit.
2. Updates annual management, administrative, legal and other consultant costs
associated with administration of the SJMSCP.
3. Annual cost updates will continue to use the California Consumer Price Index (CPI), as
reported by the California Department of Finance, for the preceding 12 months (July —
June) to keep up with inflation on an annual basis.