Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  20-001245

 

MEETING DATE:

01/26/21

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

3

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Thomas Miller (714) 834-6019 

 

 

Stacy Blackwood (949) 923-3743

 

 

Subject:  Conveyance of Real Property and Access Easements at Peters Canyon Regional Park

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   N/A

    Current Fiscal Year Revenue: $132,500.

  Funding Source:      See Financial Impact Section

County Audit in last 3 years: No

 

 

    Prior Board Action:         N/A

 

RECOMMENDED ACTION(S):

 

 

1.

Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) Class 5 (Minor Alteration in Land Use Limitations) pursuant to CEQA Guidelines, Sections 15305

 

2.

Find that the subject property is surplus to County needs and is not needed for County or OC Parks use.

 

3.

Approve and execute the Purchase and Sale Agreement and Quitclaim Deed to Jack Chou for two parcels of surplus property to be used as a fuel modification zone for an adjacent development project and return the executed documents to CEO Real Estate for further processing and recordation.

 

4.

Approve and authorize the Chief Real Estate Officer or designee to execute the Easement Deed and Agreement to Randall Evans Lake and Sarah Joyce Lake as Co-Trustees of the Lake Living Trust established August 13, 2014, for the purpose of formalizing access to their adjacent residential property and return the executed documents to CEO Real Estate for further processing and recordation.

 

5.

Approve and authorize the Chief Real Estate Officer or designee to execute the Easement Deed and Agreement to Michael A. Waggoner and Charlotte A. Waggoner, Trustees of the Waggoner Revocable Living Trust Dated October 11, 2010, for the purpose of formalizing access to their adjacent residential property and return the executed documents to CEO Real Estate for further processing and recordation.

 

6.

Approve and authorize the Chief Real Estate Officer or designee to execute the Easement Deed and Agreement and waive nominal purchase fees associated with transfer to East Orange County Water District for the purpose of formalizing access to their existing easement located on adjacent property owned by the Lake Living Trust and return the executed documents to CEO Real Estate for further processing and recordation.

 

7.

Authorize the Chief Real Estate Officer, or designee, to execute any collateral instruments or minor changes that do not materially alter the Purchase and Sale or Easement agreements, nor result in any additional liability for the County, without further action from the Board.

 

 

 

 

 

SUMMARY:

 

Approval of real estate conveyance documents, including the Purchase and Sale Agreement and Quitclaim Deed to Mr. Jack Chou and easements to the Lake Living Trust, Waggoner Revocable Living Trust and East Orange County Water District, will support residential development, reduce County financial and maintenance responsibilities and memorialize historically used accessways and a sewer pipeline easement.

 

 

BACKGROUND INFORMATION:

 

In 1992, the Irvine Company dedicated 340 acres of land to the County within the boundaries of the cities of Orange and Tustin, to be preserved as open space.  This land was later named Peters Canyon Regional Park (“Peters Canyon”), and today, Peters Canyon is largely surrounded by residential development.  Portions of Peters Canyon are located immediately adjacent to and/or surrounding Bent Tree Road and Shady Canyon Road, a private road leading to a private residential community.

 

Jack Chou is the owner of several parcels adjacent to Peters Canyon along Shady Canyon Road.  Mr. Chou intends to develop his property with three single family homes and construct an entry signage monument for those homes.  The Orange County Fire Authority requires Mr. Chou to provide a fuel modification zone as a fire protection measure in order to develop his property.  Consequently, Mr. Chou approached the County about purchasing two County parcels that surround Shady Canyon Road (Parcels PR30K-101.5 and 101.6 on Attachment A – Location Map), which presently do not have any recreation uses, to establish the required fuel modification zone and for the entry monument.  The County has prepared a Purchase and Sale Agreement (Attachment B) for acquisition of both parcels in the amount of $120,000.  The Purchase and Sale Agreement includes a reservation of access easements to the County within the two parcels (Parcels PR30K-876 and 877) to allow the County continued access along Shady Canyon Road as shown in Attachment G. The sale of the parcels to Mr. Chou will support development of homes with adequate fuel modification zones and relieve the County of financial and maintenance obligations for properties that are not currently used for recreational purposes.  The parcels are not marketable to anyone but the adjoining law owners, so a bidding process would not be advantageous to the County.  California law permits the sale of County land without competitive bidding if it is of limited utility or unmarketable, i.e., if competitive proposals would be futile or would not produce any advantage to the County.  See also, Meakins v. Steveland, Inc., 68 Cal.App.3d 490, 498 (1977).  However, the buyer still must pay fair market value.

 

In reviewing the parcels, staff discovered the smaller parcel (Parcel 104-290-96) has an underground sewer pipeline and unrecorded historic access easements over the westerly portion of that property (Parcel PR30K-878), which is routinely used by the East Orange County Water District (“EOCWD”) as a pipeline easement and as an accessway to other easements, and the Lake family to access adjacent Lake family property, and the Waggoner family to access the north-easterly boundary of their adjacent property for landscape and maintenance. The Easement Area is the same for all three users and is shown in Attachment H.  Staff met separately with EOCWD, and representatives of both the Lake family, and the Waggoner family.  All parties have requested that the County formally document the historic easement before the property is conveyed to Jack Chou.  The Lake and Waggoner families have each agreed to pay $5,000 to the County for processing and easement consideration fees.   The nominal Easement purchase fees are being waived for EOCWD to facilitate a public benefit associated with the public utility purpose, but EOCWD will arrange for payment of the County’s $2500 processing fee as the total consideration to be received from EOCWD.  

 

The conveyance and easement parcels were appraised based on a historical market data analysis conducted by CEO Real Estate to ensure the County is receiving a fair market value.  CEO Real Estate and OC Parks recommend approval of the Purchase and Sale Agreement and Quitclaim Deed to Mr. Chou to facilitate the development of a fuel modification zone and an entry monument, and the Easement Deed and Agreements to the Lake Living Trust, The Waggoner Revocable Living Trust and EOCWD to formalize and document the historic easement usage.

 

Orange County Parks Commission: The Orange County Parks Commission considered this item and recommended it for Board approval at its January 7, 2021, meeting.

 

Natural Community Conservation Plan and Habit Conservation Plan (NCCP/HCP): The property is not subject to NCCP/HCP but is subject to a fuel modification zone resulting from the establishment of

NCCP/HCP in the adjacent reserve. Jack Chou as GRANTEE will accept the obligation to maintain the property pursuant to Orange County Fire Authority’s fuel modification guidelines consistent with NCCP/HCP policies.  

 

Surplus Property:  This property was noticed as surplus property to per Government code 54222 on July 30, 2020. No interested parties responded to the notice. 

 

Compliance with CEQA: In accordance with CEQA Guidelines Section 15305 Class 5, the proposed project is exempt from the provisions of CEQA because it involves a minor alteration in land use limitations. This conclusion reflects the independent judgment of the lead agency and satisfies the requirements of CEQA.

 

General Plan Conformity:  This project is in conformance with the City of Tustin’s General Plan.

 

Hazardous Materials Assessment:  The proposed project does not require assessment under County of Orange Hazardous Assessments Policy and Procedures adopted by your Board on October 20, 1992.

 

Park Abandonment:  These parcels were restricted by a Use Restriction and Reversionary Interest held by The Irvine Company, which was terminated by document number 2020000361361 and recorded on July 27, 2020.  No other County park restrictions exist on these parcels, therefore, park abandonment is not required.

 

 

 

FINANCIAL IMPACT:

 

 

Approval of the Easements and Purchase and Sale Agreement will result in an additional $132,500 in revenue for OC Parks Fund 405, which will be absorbed in the FY 2020-21 budget.

 

 

 

STAFFING IMPACT:

 

N/A

 

REVIEWING AGENCIES:

 

OC Community Resources/OC Parks


 

ATTACHMENT(S):

 

Attachment A – Conveyance Map
Attachment B – Purchase and Sale Agreement and Quitclaim Deed to Jack Chou
Attachment C – Legal Description and Depiction of the Conveyance Parcels
Attachment D – Easement Deed and Agreement to the Lake Living Trust
Attachment E – Easement Deed and Agreement to the Waggoner Revocable Living Trust
Attachment F – Easement Deed and Agreement to EOCWD
Attachment G – Legal Description and Depiction of the Reserved County Access Easement
Attachment H – Legal Description and Depiction of the Access Easement
Attachment I – Real Estate Conveyance Questionnaire