AGENDA TITLE:
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Public Hearing for October 21, 2026 to Consider Waiving the First Reading and Introducing an Ordinance amending Lodi Municipal Code Title 15 (Buildings and Construction) by adding Chapter 15.69 (Agricultural Mitigation Fee) and Chapter 15.70 (Parkland Dedication and In-Lieu Fees); amend Title 17 (Development Code), Article 2 (Zoning Districts Land Use and Development Standards), Section 17.28.040 (Planned Development (-PD) Overlay Zoning District); and amend Title 17, Article 6 (Development Code Administration) by adding Chapter 17.77 (Boundary Changes) and Chapter 17.78 (Williamson Act Regulations) (Applicant: City of Lodi; CEQA Status: Exempt per Section 15061(b)(3) - General Rule Exemption and Section 15378 as the Ordinance is not a project) (CD)
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MEETING DATE:
October 21, 2026
PREPARED BY:
Cynthia Marsh, Deputy Community Development Director
recommendation
RECOMMENDED ACTION:
Public Hearing for October 21, 2026 to consider making the findings required by Lodi Municipal Code Section 17.72.070(B), as set forth in this staff report, waiving the first reading and introducing an ordinance amending Lodi Municipal Code Title 15 (Buildings and Construction) by adding Chapter 15.69 (Agricultural Mitigation Fee) and Chapter 15.70 (Parkland Dedication and In-Lieu Fees); amend Title 17 (Development Code), Article 2 (Zoning Districts Land Use and Development Standards), Section 17.28.040 (Planned Development (-PD) Overlay Zoning District); and amend Title 17, Article 6 (Development Code Administration) by adding Chapter 17.77 (Boundary Changes) and Chapter 17.78 (Williamson Act Regulations).
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BACKGROUND INFORMATION:
The proposed amendments represent Phase 4 of the City's incremental Development Code update program and implement policy direction provided by the City Council during its June 9, 2026, Annexation and Growth Management Workshop (“Annexation Workshop”). During that workshop, the City Council discussed the need for a more comprehensive, transparent, and predictable framework to guide future annexation requests, ensure orderly growth, protect agricultural resources, and establish clear expectations for applicants pursuing development within the City's Sphere of Influence.
The City is experiencing an unprecedented increased interest in annexation and development within its Sphere of Influence, which necessitates annexation proposal evaluation by staff. When City staff conducts an evaluation of an annexation proposal, it relies on the City Council-adopted General Plan. Indeed, for more than 16 years, staff has relied on the General Plan and Growth Management Ordinance (Chapter 15.34) to evaluate annexation proposals and implement the City's adopted growth management policies. Now, however, many of the General Plan policies and long-standing administrative practices that have heretofore guided City staff have never been formally codified in the Development Code, resulting in procedures and standards that are applied administratively rather than through clear Municipal Code requirements.
The currently proposed amendments primarily codify these existing General Plan policies and long-standing administrative practices and establish clear procedures, application requirements, review criteria, and development standards related to: (1) annexation, (2) agricultural land conversion, (3) infrastructure planning, (4) parkland dedication, and (5) Williamson Act contract status. In addition, and consistent with the policy direction provided by the City Council during its June 9, 2026 Annexation Workshop, the amendments establish a preliminary merit hearing process. This preliminary merit hearing process will allow the City Council to determine whether a proposed annexation merits further processing before the applicant proceeds with the time and expense of preparing detailed technical studies and environmental review. Collectively, these amendments provide greater transparency, consistency, and predictability for applicants, decision-makers, and the public.
The City Council will also consider the Westside "F" Annexation under a separate public hearing at this meeting. Although the “F” Annexation project relies upon several of these proposed code amendments, including the new Williamson Act regulations and agricultural mitigation requirements associated with the conversion of Prime Farmland, the merit hearing requirements will not apply. This is because the “F” Annexation project application was submitted in 2025, predating the proposed merit hearing process, which is triggered at the time annexation applications are submitted. Adoption of these amendments will establish the regulatory framework necessary to implement the City's existing General Plan policies for current and future annexation proposals.
Specifically, the proposed amendments are intended to:
• Establish a formal annexation process, including a merit hearing (pre-annexation hearing) prior to application submittal.
• Ensure annexation proposals are consistent with the General Plan and Growth Management Ordinance (Chapter 15.34).
• Prevent piecemeal annexation and the premature extension of urban services.
• Require pre-zoning and comprehensive application materials, including CEQA documentation, infrastructure planning, and fiscal analyses.
• Establish clear criteria and required findings for annexations and Sphere of Influence amendments.
• Require annexations to be contiguous to existing City limits.
• Require City Council authorization by resolution prior to submission of annexation applications to LAFCO.
The proposed code amendments also codify existing General Plan policies that require comprehensive master planning of annexation areas by establishing Development Code standards for coordinated planning of land use, transportation, infrastructure, stormwater facilities, parks and open space, public facilities, and phased development. In addition, the proposed code amendments establish Chapter 15.69 (Agricultural Mitigation Fee), Chapter 15.70 (Parkland Dedication and In-Lieu Fees), Chapter 17.77 (Boundary Changes), and Chapter 17.78 (Williamson Act Regulations), along with amendments to the Planned Development Overlay provisions, to provide the regulatory framework necessary to implement the City's adopted growth management, agricultural preservation, and infrastructure planning policies. Collectively, these amendments ensure future annexations and development occur in an orderly, coordinated, fiscally responsible, and sustainable manner consistent with the City's General Plan and long-term planning objectives.
The proposed requirement for comprehensive master planning of annexation areas implements existing General Plan policies and reflects best planning practices for evaluating large-scale growth areas. Master planning is a vital tool for determining whether an annexation can function as a complete, fiscally sustainable urban neighborhood, rather than a collection of individual, piece-meal development projects. Further, master planning provides the foundational basis for evaluating: (1) long-term infrastructure needs, (2) public facilities, (3) fiscal impacts, (4) environmental considerations, and (5) development phasing before the City assumes responsibility for providing municipal services. Indeed, master planning equips cities with the capability to ensure the coordinated planning of land use, including but not limited to, transportation, utilities, stormwater facilities, parks, open space, and public services. It also promotes interconnected neighborhoods and multimodal circulation, and helps avoid piecemeal development and inefficient extension of infrastructure. Finally, because annexation represents a drastic change that permanently expands the City's boundaries and obligates it in the long-term to provide necessary infrastructure and municipal services to the annexed areas, it is appropriate that annexation areas be evaluated comprehensively and objectively through a master planning process, rather than on a parcel-by-parcel basis.
By codifying these long-standing General Plan policy requirements in the Development Code, the City is promoting implementation of orderly, efficient, and fiscally responsible growth while providing greater predictability for both the City and future applicants.
Table 1 below summarizes the individual LMC Sections being amended, listed by Development Code Section numbers, title, subject matter, reason for the amendment, and supporting General Plan policies.
Table 1 - Phase 4 Development Code Amendment Summary
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Section(s) |
Section Title |
Subject Matter |
Reason for Amendment |
Related General Plan Policy |
|
15.69.010-15.69.130 |
Agricultural Mitigation Fee |
Establishes a fee program to mitigate the loss of agricultural land resulting from development. |
Implement agricultural land conservation policies and ensure mitigation for farmland conversion. |
C-P7, AG-P (Agricultural Preservation Policies) |
|
15.70.010-15.70.120 |
Parkland Dedication and In-Lieu Fees (Quimby Act) |
Establishes requirements for parkland dedication or in-lieu fees for residential development. Integrates Park planning with open space and stormwater systems. |
Implement General Plan Policy P-P2 and ensure new development contributes to park and recreation facilities. |
P-P2, P-P19, P-P20, P-P21, LU-P, CD-P |
|
17.28.040 |
Planned Development (-PD) Overlay Zoning District |
Establishes standards for the Planned Development overlay and clarifies its relationship to annexation, growth management, and master planning requirements. |
Ensure Planned Developments are consistent with the General Plan, Growth Management Plan, and annexation framework, and are not used to circumvent infrastructure, environmental, or policy requirements. |
LU-G, LU-P, CD-G, CD-P |
|
17.77.010-17.77.130 |
Boundary Changes |
Establishes a comprehensive annexation process, including Merit Hearing (Pre-Annexation application/hearing), formal application procedures, prezoning, and City Council authorization prior to LAFCO submittal. |
Provide a clear, consistent framework for evaluating annexation requests and ensuring orderly growth. |
GM-G1, GM-G2, GM-G3, GM-P1, GM-P2, GM-P3, GM-P4, GM-P5, GM-P6, LU-G, LU-P, CD-G, Table 3-1 |
|
17.77.070 |
Criteria |
Establishes findings and evaluation criteria for annexation, including infrastructure, fiscal impacts, stormwater, electric service, and General Plan consistency. |
Ensure annexations are policy-driven and consistent with long-term planning objectives. |
GM-P2, GM-P3, GM-P4, GM-P5, GM-P8, LU-G, CD-G, H-P, CD-P2, CD-P3, CD-P4, CD-P11, CD-P14, CD-P15, CD-P16, CP20, CD-P21, CD-P22, CD-P23, CD-P24, CD-P26, CD-P28, T-P2 |
|
17.77.100 |
Master Plan Requirement |
Requires comprehensive planning (Specific Plan, Precise Plan, or equivalent) for annexation areas. |
Ensure coordinated land use, infrastructure, and open space planning prior to development. |
LU-P24, LU-P26, LU-P27, LU-G, CD-G, P-P2, GM-P8, GM-P10, GM-P11, GM-P21, T-P1, T-P2, T-P14, T-P16, T-P17, T-P20, T-P23, T-P27 |
|
17.78.010-17.78.070 |
Williamson Act Regulations |
Establishes procedures for nonrenewal, cancellation, and City succession of Williamson Act contracts in annexation areas. |
Ensure proper handling of agricultural contracts and alignment with annexation decisions. |
AG-P, LU-P, Chapter 7 |
|
|
KEY COMPONENTS OF PHASE 4 AMENDMENTS:
1. Annexation Process (Chapter 17.77)
• Two-step process: Merit Hearing (Pre-Annexation Application/Hearing) followed by Formal Application
• Requirement for City Council authorization prior to processing
• Mandatory prezoning for annexation areas
• Requirement for full application materials including CEQA, infrastructure, and fiscal analysis
• Requirement for City Council resolution prior to LAFCO submittal
2. Master Planning Requirements
• Required for undeveloped or large annexation areas
• May include Specific Plans, Precise Plans, or equivalent
• Must address land use, circulation, infrastructure, stormwater basins, parks, and phasing
3. Infrastructure and Service Planning
• Includes water, wastewater, storm drainage, transportation, public safety, and electric service
• Requires coordination with Caltrans for projects involving state highways
• Requires applicant-funded infrastructure analysis and improvements
4. Agricultural Mitigation (Chapter 15.69)
• Establishes an Agricultural Mitigation Fee program
• Requires mitigation for conversion of agricultural land
• Supports long-term agricultural land preservation consistent with General Plan policies
5. Parkland Dedication (Chapter 15.70 - Quimby Act Implementation)
• Establishes parkland dedication and in-lieu fee requirements pursuant to Government Code Section 66477
• Implements General Plan Policy P-P2
• Requires a minimum of 5 acres of parkland per 1,000 residents
• Supports broader open space planning goal of 8 acres per 1,000 residents, including stormwater basins and open space through master planning
• Requires integration of parks, trails, and basin/open space systems
6. Planned Development (PD) Overlay Updates (Section 17.28.040)
• Clarifies the relationship between Planned Developments and annexation, growth management, and master planning requirements
• Requires consistency with the General Plan, Growth Management Plan (Chapter 15.34), and any applicable master plan
• Establishes that the PD overlay cannot be used to circumvent annexation criteria, infrastructure requirements, or environmental and mitigation obligations
• Requires that any flexibility in development standards results in equal or greater public benefit and design quality
• Reinforces that PD zoning remains subordinate to adopted planning policies and regulatory requirements
7. Williamson Act Integration (Chapter 17.78)
• Establishes procedures for nonrenewal, cancellation, and City succession
• Requires City Council determination of contract resolution pathway prior to annexation approval
• Prohibits development until contract expiration or cancellation
• Ensures coordination between annexation decisions and agricultural land use protections
CONSISTENCY WITH GENERAL PLAN
The proposed amendments implement General Plan policies related to:
• Orderly and contiguous growth
• Infrastructure planning and phasing
• Agricultural land conservation
• Parkland and open space provision (Policy P-P2)
• Connectivity and reduction of vehicle miles traveled
The amendments ensure that annexation decisions are consistent, comprehensive, and aligned with long-term planning objectives.
REQUIRED FINDINGS FOR DEVELOPMENT CODE AMENDMENTS
Pursuant to Lodi Municipal Code (LMC) Section 17.72.070(B), the City Council must make the following findings to approve amendments to the Development Code. Staff recommends that the City Council make the following findings:
1. The proposed amendment is consistent with the General Plan. (LMC Section 17.72.070(B)(1)(a))
The proposed Phase 4 Development Code amendments are consistent with and implement the goals and policies of the City's adopted General Plan, particularly those related to growth management, orderly annexation, agricultural land preservation, infrastructure planning, parkland dedication, and coordinated development. The amendments establish regulatory procedures and standards to implement existing General Plan policies, including requirements for comprehensive master planning, agricultural mitigation, and the provision of public facilities and services. Accordingly, the proposed amendments further the implementation of the General Plan and are consistent with its objectives.
2. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. (LMC Section 17.72.070(B)(1)(b))
The proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Rather, they establish clear and consistent procedures for evaluating annexation proposals and future development, ensuring that infrastructure, public services, agricultural resources, and fiscal impacts are appropriately considered. The amendments promote orderly and coordinated growth, provide greater transparency and predictability for applicants and the public, and protect the City's long-term interests by establishing standards for development and the extension of municipal services.
3. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA) and the Lodi Environmental Review Guidelines. (LMC Section 17.72.070(B)(1)(c))
The proposed Development Code amendments have been reviewed in accordance with CEQA and the Lodi Environmental Review Guidelines. The amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), the Common Sense Exemption, because it can be seen with certainty that the proposed amendments will not result in a significant effect on the environment. Additionally, the amendments do not constitute a project under CEQA Guidelines Section 15378 because they establish administrative procedures and regulatory standards and do not directly authorize physical development. Future development proposals subject to these regulations will undergo applicable project-specific environmental review.
4. The proposed amendment is internally consistent with other applicable provisions of the Development Code. (LMC Section 17.72.070(B)(3))
The proposed amendments are internally consistent with other applicable provisions of the Development Code. The amendments supplement and clarify existing regulations governing zoning, planned developments, growth management, annexation, and development review without creating conflicting requirements. In particular, the amendments establish procedures for boundary changes and Williamson Act contracts, clarify the application of the Planned Development Overlay District, and provide regulatory mechanisms for implementing existing General Plan policies. The amendments are intended to operate in coordination with existing Development Code provisions and the City's Growth Management Ordinance (LMC Chapter 15.34), thereby providing a comprehensive and consistent regulatory framework for future development and annexation.
Additional Community Workshop
At the request of the City Council and representatives of the Building Industry Association (BIA), including John Beckman, staff conducted an additional community workshop on September 22, 2026, at 6:00 p.m. in the Police Department Community Room to receive further input regarding the proposed Phase 4 Development Code amendments. The workshop was well attended, with approximately 15 to 20 members of the public participating, in addition to Community Development and Economic Development staff. Attendees included developers, BIA representatives, real estate professionals, consultants, a Planning Commissioner, and interested community members.
Discussion focused primarily on the proposed preliminary Merit Hearing process for annexation requests. Two principal changes were requested by workshop participants:
1. Rename the proposed “Merit Hearing Application” as the “Pre-Annexation Application” to more clearly describe the purpose and timing of the preliminary review; and
2. Remove Planning Commission review from the preliminary process so that the Pre-Annexation Application proceeds directly to the City Council for consideration.
Staff supports both requested changes. The Development Code amendments recommended for approval by the Planning Commission at its August 12, 2026 meeting are included as Attachment 2 (redline/strikeout version) and Attachment 3 (clean version).
Following the community workshop, staff incorporated the proposed revisions into an alternative version of the Development Code amendments for City Council consideration. These revised amendments are provided as Attachment 4 (redline/strikeout version, with highlighted changes identified in dark blue font) and Attachment 5 (clean version).
The Planning Commission considered this item at its August 12, 2026 meeting and voted to recommend that the City Council approve the proposed Development Code amendments as the fourth phase (“Phase 4”) of the City’s ongoing code updates.
ENVIRONMENTAL ASSESSMENT:
The proposed Development Code amendments are exempt from review under the California Environmental Quality Act (CEQA) pursuant to:
• Section 15061(b)(3) (General Rule Exemption), and
• Section 15378 (not a project)
It can be seen with certainty that the proposed amendments will not result in a significant effect on the environment.
Future development projects will be subject to project-specific CEQA review.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Not applicable.