Title
Department of Transportation recommending the Boad consider the following:
1) Authorize the Chair to sign an Easement Agreement conveying to the County an easement for public access over the trails commonly referred to as the Village K1/K2 trails; and
2) Authorize the Chair to sign Certificates of Acceptance to allow for recordation of the aforementioned Easement Agreement.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The Village K1/K2 Trail is located in an open space area in the Serrano residential development, which is within the El Dorado Hills Specific Plan (“EDHSP”). In accordance with Section 6.2.1 of the EDHSP and Section 3.2 of associated Development Agreement, the Developer was required to offer to dedicate to El Dorado Hills Community Services District (“EDHCSD”) or other governmental agency certain park and open space lands and improvements as set forth in the Financing Plan. However, Section 3.2.1 of the Development Agreement went on to state, “In the event CSD fails to accept dedication of any of the park and open space lands described in this subsection and in the Financing Plan, Developer shall make an offer to dedicate, and County may accept dedication of, such lands to the County.”
In accordance with the foregoing, on July 13, 2016, Serrano Associates, LLC (“Developer”) provided an informal offer to the EDHCSD and the County to gauge their interest in accepting an offer of dedication of the open space area that now contains the K1/K2 Trail. Due to concerns about the financial obligations for the ongoing management and maintenance of the open space, in October 2016, the County’s Planning Director acknowledged that the County had no interest in accepting the open space.
On June 1, 2021, the Developer provided the EDHCSD and the County with formal offers of dedication of the open space area that now contains the K1/K2 Trail. On September 10, 2021, EDHCSD’s Board of Directors formally declined to accept the open space. The offer was presented to your Board on March 22, 2022 (Legistar 22-0368). For the same reasons the informal offer was declined in 2016, your Board declined to accept the formal offer in 2022, with the staff report noting that the County lacked resources to manage the open space and that the Serrano Owners’ Association is the reasonable long-term open space owner and manager.
In August of 2022, the Developer completed construction of the K1/K2 Trail and related improvements. In addition to public recreational purposes, the trail was designed to provide fire department access to the heavily wooded area behind Village K1/K2. The project included clearing and grubbing, tree removal, pathways, drainage, and storm water controls along the site. Such improvements were eligible for reimbursement from CFD 1992-1 (Serrano), which was authorized to fund “Improvements to the public natural open space in the form of, but not limited to, pedestrian and equestrian trails, parking areas and fire prevention works.” Accordingly, the Developer sought and, in May 2023, was granted reimbursement from CFD 1992-1 (Serrano) in the amount of $572,226.61.
However, Section 6.1 of the County’s CFD Reimbursement Guidelines (which, per the CFD Acquisition and Disclosure Agreement, governs how title to public improvements will be transferred) required the Developer to have transferred right-of-way (i.e., an easement or fee title) to the County or to have offered the County an Irrevocable Offer of Dedication prior to reimbursement from the CFD. Despite the Developer’s prior efforts to dedicate the entire open space area to the County, it had not transferred an interest in the K1/K2 Trail to the County nor had it provided an Irrevocable Offer of Dedication prior to requesting reimbursement. The Easement Agreement being presented with this item will rectify that.
Although the K1/K2 Trail has been made available for public use since it opened, this Easement Agreement will forever memorialize the County’s property interest in the Trail and the public’s beneficial use and right of access to the Trail. Additionally, it will memorialize the obligation of the owner of the underlying property to maintain the Trail in accordance with the standards set forth in the Serrano Open Space Management Plan. At present, Serrano Associates owns the underlying fee, but it is expected that it will transfer the underlying fee (and the associated obligations under the Easement Agreement) to the Serrano Owners’ Association as the long-term manager. Until such time, Serrano Associates and the Serrano Owners’ Association will share responsibility for maintaining the public access easement areas in accordance with Serrano Open Space Management Plan.
ALTERNATIVES
The Board could choose to decline to sign the Easement Agreement, in which case continued public access to the Trail will not be assured.
PRIOR BOARD ACTION
March 22, 2022 - Legistar 22-0368
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION
FINANCIAL IMPACT
There is no change to Net County Cost associated with this item, as either Serrano Associates or the Serrano Owners’ Association will retain responsibility for maintenance and management of the K1/K2 Trail.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will send the fully executed original of the Easement Agreement and each of the Certificate of Acceptance to the Recorder/Clerk’s Office for recordation within ten (10) days, and forward a copy of the each of recorded documents to County Counsel,
Attention: David Livingston.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Community Development Services, Department of Transportation