1. CITY OF STOCKTON CITY COUNCIL AGENDA ITEM: DATE: PROJECT: APPLICANT: PRESENTOR: AGENDA ITEM: DATE: PROJECT: APPLICANT: PRESENTOR: 9.02Public Facilities Fee Amendment (Habitat Fee) January 23, 2007 Adoption of two resolutions revising the City’s Public Facilities Fee by Amending the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) Fee Schedule (Exhibit “C” of Resolution No. 03-0105) and amending the Public Facilities Fee Program Administrative Guideline, effective April 1, 2007. City Initiated Mike Niblock, CDD Director

2.  Resolutions authorize amendment to the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (Habitat Plan) fees, effective April 1, 2007, and amendment to the method of annually adjusting those fees.  On March 5, 2002, the City Council established the authority for collection of a Habitat Fee.  Increased costs and an inadequate annual adjustment index resulted in a significant funding shortfall. Background and Purpose of Fee Update

3.  Funding shortfall may result in the California Dept. of Fish and Game and U.S. Fish and Wildlife Service permits being revoked.  Financial Analysis Update provides a nexus for a new fee schedule and a fee updating process to keep pace with: (1) land acquisition costs (2) assessment and enhancement costs (3) management and administrative cost  Exhibit 5 provides a comparison of existing Habitat Fees and the proposed fees: Background and Purpose of Fee Update

4. Current and Proposed SJMSCP Fee Per Acre Habitat Type Multi-Purpose Open Space$1,731$6,511 Natural$3,463$13,022 Agriculture$3,463$13,022 Vernal Pool – (uplands)$10,565$34,958 Vernal Pool – (wetted)$63,277$69,858 Other Pay Zone (Prior Agreement)*$750 Updated Fee Per Acre (April 1, 2007)*** Current Fee Per Acre (Jan. 1, 2007)**

5.  Representatives of the Building Industry Association of the Delta (BIA), other members of the Habitat Technical Advisory Committee (HTAC), HTAC Financial Subcommittee, and the SJCOG, Inc. Board of Directors unanimously supported the amendment to the Habitat Fees.  SJCOG, Inc. staff is coordinating with all jurisdictions in San Joaquin County to facilitate implementation of the fees on April 1, 2007.  SJCOG, Inc. staff presentation to provide additional information regarding the Financial Analysis Update. Background and Purpose of Fee Update

6. EFFECTIVE DATE: April 1, 2007 Fee amendment resolutions – Adoption Item 9.02 Recommended Actions

7. San Joaquin County Multi-Species Habitat Conservation & Open Space Plan Financial Analysis Update City of Stockton Tuesday, January 23, 2007 Stockton, CA

8. WHY THE ANALYSIS UPDATE? SJMSCP Financial/Permit Sustainability Funding Shortfall –Adopted Fees Lower Than Original Financial Analysis –30% Funding from “Soft Money” Grants (Federal, State or Private) –California Construction Cost Index (CCCI) Falls Short of Inflation

9. FINANCIAL ANALYSIS UPDATE SUBCOMMITTEE MEMBERS John Beckman, BIA Dan Gifford, CDFG Jana Milliken, USFWS Mike Niblock, City of Stockton Kerry Sullivan, San Joaquin County SJCOG, Inc. Staff With Assistance from: Phil Peninno, SJCOG, Inc. Consultant Luis Arismendi, BIA Consultant Neumiller and Beardslee, SJCOG, Inc. Counsel Economic and Planning Systems Jones and Stokes

10. OUTREACH 3 Public Workshops: January 31, 2006 May 4, 2006 November 9, 2006 6 HTAC Financial Update Subcommittee Meetings Public Presentations to: Building Industry Association SJ Partnership SJ County AG Commission Lodi Rotary

11. EXISTING PLAN UPDATE Original Financial Analysis Assumptions/Parameters Maintained Blended Rate Approach –Agricultural & Natural Lands Combined Into One Fee Rate –Open Space Fee Ratio for Mitigation Evaluate All Costs of SJMSCP –No Shortfall Annual Adjustments & Updates to Fees

12. AREAS OF FOCUS FOR UPDATE A. Acquisition Costs –Agricultural Land Sales / Easement Value –Keeping Pace with Market Conditions B. Assessment & Enhancement C. Management & Administration –Preserve Endowments –Development Projects –Administration of HCP

15. FINAL NUMBERS Other Open Space Natural / Agricultural Vernal Pool (Grasslands) Vernal Pool (Wetted) $13,022 $6,511 $34,958 $69,858 (PRICE PER ACRE)

16. ANNUAL FEE ADJUSTMENTS A. Acquisition Costs Annual Adjustments ALL SJCOG, Inc. Transactions (regardless of sale type or size) Other Comparables that are: Over 40 acres in size Under 500 acres in size Not Orchard or Vineyard properties Consistent as mitigation under SJMSCP Minimum of 10 acceptable comps within 2 years prior (or 3 Month Intervals) B. Assessment & Enhancement Adjustments C. Management & Administration Adjustments B & C will be adjusted annually using the Consumer Price Index (CPI) as r eported by the California Department of Finance

17. IMPLEMENTATION SCHEDULE SJCOG, Inc. Board Adoption November 30, 2006 Stockton City Council January 23, 2007 – Pending Action Effective: April 1, 2007