MEETING DATE:
JANUARY 27, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9535 - AUTHORIZATION TO NEGOTIATE AN AGREEMENT WITH THE SAN ELIJO HILLS COMMUNITY ASSOCIATION FOR THE CONSTRUCTION OF PRIVATELY FUNDED IMPROVEMENTS AT SAN ELIJO HILLS PARK, AND DELEGATE AUTHORITY TO THE CITY MANAGER TO NEGOTIATE, FINALIZE, EXECUTE, AND IMPLEMENT THE AGREEMENT AND ASSOCIATED DOCUMENTS AND ACTIONS
Body
Recommendation
Recommendation
ADOPT a resolution authorizing the City Manager to negotiate an agreement with the San Elijo Hills Community Association (HOA) for the privately funded construction of public improvements at San Elijo Hills Park, known as Assessor’s Parcel Numbers 223-041-06, 09, and 10, located at the northwesterly quadrant of the intersection of San Elijo Road and Elfin Forest Road and delegating authority to the City Manager to negotiate, finalize, and execute the agreement and any related documents.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Planning for the Future
Good Governance
Executive Summary
The San Elijo Hills Community Association (HOA), assisted by the efforts of community representatives from the San Elijo Hills Foundation (SEHF), seeks to invest funds from the San Elijo Hills Community Association (HOA) to privately fund and construct public enhancements to San Elijo Hills Park (Park) such as an improved dog park and a skatepark, with these two amenities together valued around $700,000. The attached resolution would authorize the City Manager to evaluate the group’s requests, negotiate and execute an agreement for the private funding and construction of one or more facilities, and to permit the construction work on the city-owned and maintained park facility. Between the citywide Community Facilities District (CFD) 98-02 and CFD 98-02 F-zone F-9, 75% of the cost of long-term maintenance of the facilities would be covered. The remaining 25% of the cost of long-term maintenance of the proposed facilities would be included in the City’s general fund budget.
Discussion
San Elijo Hills Park is a city-owned and maintained facility in the San Elijo Hills town center. Representatives from SEHF and the HOA have initiated a community effort to make improvements to the public park. The project advocates propose to fund the improvements through the HOA, community contributions, and other resources such as grants pursued by the HOA and SEHF. On September 12, 2023, City Council authorized the City Manager to permit preliminary design and exploration work in pursuit of the project.
The SEHF has identified the projects and preferred amenity locations. The SEHF and its president organized, noticed, and conducted public outreach on the proposed facilities on October 19, 2023, and reported that approximately 30 people attended the workshop. As currently planned, the HOA will bear the anticipated construction costs for the initial improvements of approximately $700,000 and, with assistance from the SEHF, bear the sole responsibility for initiating and managing the contractors and consultants who will perform the work, for directing the work, and for managing associated funds. The City will participate in the design phase to ensure alignment with City standards for public improvements. However, the City will not contribute to design or construction costs. The City’s role will be in permitting and inspecting the improvements through right-of-entry agreements, engineering permits, and an agreement to stipulate ongoing maintenance and associated funding considerations.
The HOA and SEHF has prioritized the proposed enhancements, which may be constructed over time. Prioritized projects identified by SEHF include an improved dog park and a skatepark. The SEHF has indicated that they will construct the work in phases, with the likely first phase to be the construction of the dog park enhancement. Other improvements could follow in the future, pending the funding from the HOA and in accordance with the terms of the agreement to be negotiated and executed by the City Manager.
Exhibits of the proposed initial improvements are included in Attachment A. Any work proposed must attain necessary permits and notifications as applicable and must meet City requirements for when and how the construction activities take place.
The attached resolution would authorize the City Manager to negotiate, finalize, and execute an agreement and any related documents and to allow entry onto the public park for the private construction of public improvements, to specify the long-term maintenance requirements for the proposed facilities, and to include the funding for the maintenance work in the City’s operating budget in conformance with the terms of the agreement (Agreement).
Environmental Review
The proposed preliminary design, feasibility study, and planning work does not have the potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not constitute a “project” as defined by Public Resources Section 21065, and is exempt from CEQA or other environmental review pursuant to CEQA Guidelines section 15061(b)(3) and 15262. The ultimate improvements proposed for park construction will be reviewed with respect to compliance with applicable environmental review requirements, if any.
Fiscal Impact
The City will not bear any design or construction costs for the construction of the proposed park amenities to be completed by SEHF. The Agreement would provide that the City would fund the ongoing maintenance of the facilities after the improvements are constructed by SEHF and accepted by the City in accordance with the same funding source allocations as exist today for the San Elijo Hills Park maintenance (CFD 75%, subject to sufficient fund availability in the CFD, and the remainder General Fund). City staff have determined the routine maintenance cost of the initial two proposed facilities to be approximately $65,000 per year in today’s dollars, and would be funded from the same sources. In addition to the direct maintenance costs of the proposed enhancements and amenities, the City would incur additional costs for associated maintenance such as increased trash removal and increased bathroom wear and tear. Additional long-term replacement and repair costs are anticipated. However, because the work may be constructed in phases, full maintenance costs will not be realized until all the proposed amenities have been completed. San Elijo Hills Park maintenance cost is and will continue to be subject to available funds in the City’s approved annual budget and appropriated through the normal budget development process.
Attachment(s)
Attachment A: Resolution
Attachment B: San Elijo Hills Foundation Proposed Park Improvements Conceptual Exhibit
Prepared by: Stephanie Kellar, Deputy City Engineer
Reviewed by: Donna Apar, Finance Director
Submitted by: Tim Selke, Public Works Director
Approved by: Michelle Bender, City Manager