Title
Department of Transportation recommending the Board approve the following as necessary environmental mitigation for the Diamond Springs Parkway - Phase 1B Project, Capital Improvement Program number 72334/36105011:
1) Authorize the Director of Transportation to sign the Escrow Agreement with the California Department of Fish and Wildlife for the loss of 0.224 acre of habitat for a total purchase price of $204,000;
2) Authorize the Director of Transportation to open the escrow account and deposit the amount and any necessary fees for the escrow account with the escrow company;
3) Authorize the Director of Transportation to execute the letters, amend, or approve all minor modifications as necessary throughout the term of the Escrow Agreement; and
4) Authorize the Director of Transportation to sign an Agreement for Purchase and Sale of Mitigation Credits for $204,000 with Westervelt Ecological Services, LLC from Johnson Cosumnes Mitigation Bank, pending County Counsel approval.
(District 3)
FUNDING: Master Circulation and Funding Plan (58%), Traffic Impact Fees - Zone 1-7 (21%), State Local Partnership Program (14%), Regional Surface Transportation Program (3%), State Highway Operation and Protection Program (3%), Tribe Funds (historical <1%), and Road Fund (<1%). (Local and State Funds)
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DISCUSSION / BACKGROUND
The Diamond Springs Parkway - Phase 1B Project (Project) will provide a new four-lane arterial roadway with concrete curb, gutter, and sidewalk on both sides from Missouri Flat Road, south of Golden Center Drive, to a new T-intersection with State Route 49, south of Bradley Drive. The Project also includes signalization at the Missouri Flat Road, Throwita Way, and SR-49 intersections. The Department of Transportation (Transportation) prepared the Project’s Final Environmental Impact Report (EIR), which was certified by the Board of Supervisors on May 24, 2011 (Legistar file 11-0448). On May 3, 2016 (Legistar file 16-0370), the Board adopted the EIR Supplement, which included modifications to the vertical profile of the eastern portion of Phase 1B. Transportation has secured resource agency permits necessary for the Project’s construction.
In accordance with California Fish and Game Code Sections 1602 and 1603, Transportation has notified the California Department of Fish and Wildlife (CDFW) that the Project may affect existing fish or wildlife resources under the jurisdiction of the CDFW. After reviewing the Project, CDFW has determined that the Project will impact 0.224 acres of wetland habitat and that the impacts may be mitigated by purchasing 0.68 credits from a CDFW-approved conservation bank. To mitigate this impact, Transportation executed a Reservation Agreement (Reservation Agreement) for Purchase and Sale of Mitigation Credits from Johnson Cosumnes Mitigation Bank (Bank) with Westervelt Ecological Services, LLC (Westervelt) on April 7, 2025. This Reservation Agreement was within the Director of Transportation’s (Director) authority under Resolution 003-2025, which allows the Director to execute these agreements if the amount is less than $220,000. This Reservation Agreement for $204,000 reserves credits for purchase while the Bank is waiting for resource agency approval. The Bank must receive final approval and transfer mitigation credits within six (6) months of Reservation Agreement execution, otherwise it will terminate by its own terms. Due to ongoing delays experienced by Westervelt in approval of the Bank, Transportation anticipates the Reservation Agreement will terminate on October 7, 2025.
Due to these circumstances, Transportation is bringing this item to the Board for approval and authorization for the Director to sign the Escrow Agreement (Agreement) to ensure performance of the mitigation requirements per the CDFW Lake and Streambed Alteration Agreement for the Project. As Transportation waits for approval of the Bank, the Agreement will provide CDFW financial security, while project activities commence, before fulfillment of the mitigation requirements and construction can continue as scheduled. Once the Bank is approved, an Agreement for Purchase and Sale of Mitigation Credits will be reviewed by Counsel and executed by the Director for the Bank with Westervelt.
ALTERNATIVES
The Board could choose not to approve the Agreement as written. Transportation will make any changes requested by the Board and return at a later date.
PRIOR BOARD ACTION
1) September 14, 2004 (Item 81): Project adopted as part of the Fiscal Year 2003/04 Interim CIP as project 72334, under former CIP Project name “Missouri Flat Road / Pleasant Valley Road Connector.”
2) February 11, 2008 (Legistar file 08-0038): Project adopted as part of the 2008 CIP, under the current CIP Project name.
3) April 29, 2008 (Legistar file 08-0628): Approved Alternative #4 as the preferred alignment of the Project.
4) May 24, 2011 (Legistar file 11-0448): Certified Final Environmental Impact Report adopted for the Project.
5) December 18, 2012 (Legistar file 12-1540): Approved to support economic development and create special revenue fund and direct Transportation to immediately proceed with completion of design and right-of-way.
6) June 10, 2014 (Legistar file 14-0725): Approved commencement of acquisition process for the Project.
7) May 3, 2016 (Legistar file 16-0370): Certified Supplement to the 2011 Environmental Impact Report adopted for the Project.
8) March 5, 2019 (Legistar file 19-0049): Awarded Contract 2720 to Granite Construction Company for construction of Phase 1A of the Project.
9) July 23, 2019 (Legistar file 19-1009): Approved Task Order 461-S1711-01 with Bender Rosenthal, Inc. to complete right-of-way services, including valuations/appraisals, acquisitions, and relocation services for Phase 1B of the Project.
10) February 9, 2021 (Legistar file 21-0178): Diamond Springs Parkway Phase 1B Presentation.
11) April 19, 2022 (Legistar file 22-0440) - Approved Cooperative Agreement 03-0782 with Caltrans, defining the roles, responsibilities, and funding contributions of each agency related to the Plans, and Specifications, and Estimate, Right of Way, and Construction phases of the Project.
12) September 12, 2023 (Legistar file 23-0122) - Approved a Covenant and Agreement between the California Regional Water Quality Control Board, Central Valley Region, and the County of El Dorado to protect future health and safety and the environment as a result of potential risk related to the possible presence of hazardous materials as defined in Health and Safety Code §25260.
13) September 12, 2023 (Legistar file 23-1146) - Adopted Resolution 124-2023 to accept the Irrevocable Offer of Dedication from Michael D. Lindeman and Lorraine D. Lindeman, Trustees of the Lindeman Family 2005 Trust dated October 17, 2005, for road right-of-way in fee, slope and drainage and public utilities easement, and temporary construction easement pertaining to the property identified as Assessor’s Parcel Number 051-250-54.
14) September 26, 2023 (Legistar file 23-1379) - Approved Tribe Fund loan to finance additional funding needed to complete the Project.
15) April 23, 2024 (Legistar file 23-2048) - Approved PG&E Utility Agreement No. 2934.1L.
16) May 14, 2024 (Legistar file 24-0854) - Approved PG&E Utility Agreement No. 2934.1L with revisions.
17) November 12, 2024 (Legistar file 24-1806) - Approved First Amendment to PG&E Utility Agreement No. 2934.1L.
18) January 28, 2025 (Legistar file 25-0053) - Approved advertisement for the Project.
19) April 1, 2025 (Legistar file 25-0460) - Awarded the construction contract for the Project.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel has reviewed and approved the Agreement. Transportation will seek approval from Counsel for the Purchase and Sale Agreement prior to Director execution.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to net County cost associated with this item. Funding for the Agreement is included in Transportation’s 2025 CIP, which the Board approved on July 15, 2025, Legistar file 25-0504. The cost of the proposed mitigation credits is incorporated into the total costs for the Project.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Priority: N/A
Action Item: N/A
CONTACT
Rafael Martinez, Director
Department of Transportation